Department of Land Affairs Annual Report 2008/09 · 2018-12-09 · land affairs RP171/2009 ISBN: 978-0-621-38767-4 Submission of Annual Report to the Executive Authority I have the

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Submission of Annual Report tothe Executive Authority

I have the honour of submitting the 2008/2009 AnnualReport of the Department of Land Affairs in terms of thePublic Finance Management Act, 1999, to the HonourableMinister of Rural Development and Land Reform.

THOZAMILE GWANYAAccounting OfficerDATE: 9 September 2009

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DEPARTMENT OF LAND AFFAIRS: ANNUAL REPORT2

contents

Contact Details...............................................................................................................3

Part 1: General Information

Overview of the Director-General ................................................................................5

Overview of Service Delivery Environment....................................................................8

Strategic Overview & Key Policy Developments ............................................................10

Part 2: Programmatic Context

Programme 1: Administration.....................................................................................12

Programme 2: Surveys & Mapping ..............................................................................24

Programme 3: Cadastral Survey Management .............................................................27

Programme 4: Restitution ...........................................................................................30

Programme 5: Land & Tenure Reform..........................................................................33

Programme 6: Spatial Planning & Information.............................................................37

Programme 7: Deeds Registration ...............................................................................40

Part 3: Report of the Audit Committee

Report of the Audit Committee for the year ended 31 March 2009 .............................45

Part 4: Annual Financial Statements

Report of the Accounting Officer ................................................................................48

Report by the Auditor-General ....................................................................................56

Statement of Accounting Policies & Related Matters....................................................61

Financial Statements ...................................................................................................66

Report by the Auditor-General on the Deeds Registration Trading Account ..................97

Financial Statements of the Deeds Registration Trading Account..................................100

Part 5: Human Resource Management

Oversight Report: National Department of Land Affairs 2008/2009 .............................115

Abbreviations & Acronyms ...........................................................................................142

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contact details

Director-GeneralMr Thozi Gwanya Tel: 012 312 8503Fax: 012 323 6072e-mail: [email protected]

Cape Town Tel: 021 465 6320Fax: 021 465 3282

Deputy Director-General Land and Tenure Reform

Region 1 (Acting)Mr Moshe SwartzTel: 012 312 8409Fax: 012 323 6072e-mail: [email protected]

Region 2Mr Mdu ShabaneTel: 012 312 9552Fax: 012 312 9128e-mail: [email protected]

Deputy Director-General Land Planning and InformationDr Nozizwe MakgalemeleTel: 012 312 9834Fax: 012 326 9524e-mail: [email protected]

Chief Lands ClaimsCommissionerMr Andrew MphelaTel: 012 312 9244Fax: 012 321 0428e-mail: [email protected]

Chief Financial Officer (Acting)Mr Vusi MahlanguTel: 012 312 8154/9310Fax: 012 321 3279e-mail: [email protected]

Office of the DGChief Operations Officer(Acting)Ms Leona ArcharyTel: 012 312 9556Fax: 012 323 6072e-mail: [email protected]

Deputy Director-GeneralCorporate Services (Acting)Mr Anton van StadenTel: 012 312 8424Fax: 012 321 0658e-mail: [email protected]

National OfficePrivate Bag X833Pretoria, 0001184 Jacob Maré Street Pretoria, 0001Tel: 012 312 8911Fax: 012 312 8066Website:http://www.ruraldevelopment.gov.za

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part1G E N E R A LI N F O R M A T I O N

TThis is the last report for the year ended 31March 2009, of the old Department of LandAffairs (DLA); now the new Department ofRural Development and Land Reform.

The pace of land delivery in the year underreview acutely reflects the impact when adisjunction exists between the task at handand the resources provided in executing thattask. This is illustrated by the fact that theDepartment spent almost 100% of its landacquisition budget, but could only deliver443,600.4886 hectares of redistributed land.The same trend was quite visible in the case ofthe Land Claims Commission, which had topay an average of R12 949.00 per hectarewhich was a substantive increase compared tothe price paid in the 2007/2008 financial year,ballooning its restitution budget to a total ofR3.5 billion to address and restore land rightsinfringed on by the apartheid policies of thepast.

The Department effectively spent 99.9% ofthe adjusted budget in the 2008/2009financial year compared to 99.5% in2007/2008. The commendable spendingperformance of R6,66 billion is largelyattributable to the initiatives put in place tofast-track the settlement of restitution claims,as well as the acquisition of land at scale inaccordance with the provisions of the Pro-active Land Acquisition Strategy (PLAS) forredistribution purposes.

Land & tenure reformThe Department initially had a nationalredistribution target of 1 500 000 hectares ofland for the year under review, but this targetwas subsequently reduced to 608 060hectares to bring it in line with the actualbudget allocation of the land reformprogramme. A total of 443,600.4886 hectaresof land was eventually transferred andalthough this was less than the revised target,the programme spent almost 100% of itsallocated budget.

Factors such as escalating land priceseroded the buying power of the budget,

Overview ofthe Director-

General

Mr T T GwanyaDirector-General: Department of Land Affairs

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making it impossible for the programme to meet the revisedtarget. The programme nevertheless finalised 501 projects,reaching 14 457 beneficiaries.

RestitutionTo date, the Restitution programme has settled 95% of thetotal number of claims lodged by the cut-off date of 31December 1998. During the 2008/2009 financial year, theCommission on Restitution of Land Rights settled 653 claims,resulting in approximately 394 000 hectares of landrestituted to claimants. Approximately 4 296 complex claimsare outstanding.

Cumulatively, the approved hectares of land transferred interms of restitution since 1995 is 2.47 million hectares. Thisrepresents a significant contribution towards the overalltarget of redistributing 30% of white-owned agriculturalland by 2014.

To accelerate the pace of the settlement of claims, theCommission has concluded several agreements withstakeholders. These agreements are also intended to ensurethat capacity is provided to beneficiaries once a claim hasbeen settled and land transferred in order for suchbeneficiaries to actively leverage restituted land fordevelopment purposes and therefore their significantparticipation in the economy.

Post settlement supportOur assessment of land reform projects revealed that thereare indeed some land reform projects that have not met ourexpectations. The assessment also revealed, amongst others,that some of the factors leading to such a lustreperformance relate to the commitment of beneficiaries, theplanning of projects (including the choice of land),institutional alignment, as well as access to supportmeasures and farmer support. To ensure our redistributedand restituted land goes only to people who can makeoptimal use of it, the Department developed a strategywhich includes the careful selection and categorisation ofland reform beneficiaries into (a) landless households(inclusive of farm dwellers and labour tenants in communalareas, on farms and other land); (b) commercially-readysubsistence producers; (c) expanding commercial small-holders; (d) well-established black commercial farmers; and(e) financially capable aspirant farmers. This will help in theappropriate design of land reform products and in definingthe development agenda going forward.

Given the importance of strategic partnerships in securinga significant measure of land reform success, theDepartment has invested much resources in refining,consolidating and deepening relationships with suchpartners, central to which is access to support measures andfarmer support through the private sector. Consequently, theDepartment has rolled-out the strategic partners approachand 30 such partners have been accredited. This approach isimperative if we are to enhance the Department’s deliverycapability, in terms of amongst others, drawing specificprivate sector associates into the design, establishment andoperation of agrarian-based enterprises at various scales. TheDepartment expects that some of these partners will invest inthe enterprises themselves, while others will commit tosupporting initiatives through the whole developmentprocess.

Policy and legislationExtensive research and consultation, which culminated into adraft policy framework on the ownership of land byforeigners, has been undertaken and it is envisaged that thepolicy and accompanying legislation will be finalised in the2009/2010 financial year. With regards to the Willing Buyer-Willing Seller Review, considerable progress has been madeand it is anticipated that this Review will also be finalised in2009/2010. Extensive work on the collation andclassification of submissions in respect of the draftRegulations under the Communal Land Rights Act, 2004 (ActNo. 11 of 2004), including the interrogation and evaluationof such comments were completed in 2008/2009.

Land planning & informationThe regulation of proper land use, spatial planning andspatial information management within the public andprivate sectors is a core responsibility of the Department. Assuch, the provision of legislative, institutional and relevanttechnical skills constitute one of the key tasks theDepartment undertakes for a more effective land usemanagement system, spatially equitable and efficientsettlement patterns. Some of the highlights relating to thework done by the Land Planning and Informationprogramme include the coordination of various consultationsheld in respect of the Land Use Management Bill (LUMB), aswell as the provision of administrative, technical andfinancial support to the South African Council for Planners(SACPLAN).

For effective planning and monitoring of land reform,national infrastructure and sustainable development, theDepartment provided accurate, up-to-date and accessiblemaps and other geo-spatial information and imagery, as wellas an integrated spatial reference framework.

A secure land right provides a source of wealth, anegotiable asset and a platform for investment for the rightsholder, thus the immense potential for contributing topoverty alleviation and socio-economic development. Theapproval, maintenance and archiving of cadastral surveydocuments submitted by land surveyors, the supplying ofsuch cadastral information and the regulation of cadastralsurveys represents a fundamental pathway to unlockingdevelopment opportunities, particularly in the rural areas.

Notwithstanding staff shortages and an increasedworkload as a result of the boom in the property marketduring the period under the review, the Departmentmaintained a world class deeds registration turnaroundperformance time of less than 20 working days.

Strategic support& corporate servicesTo ensure good governance, the Department executed itsAnnual Audit Plan and several comprehensive audit projects.The Monitoring and Evaluation framework was improved tofacilitate the continuous monitoring of Departmentalperformance, accountability and informed decision-making.After extensive engagements with the State InformationTechnology Agency (SITA), the Department implemented aDepartmental Virtual Private Network (VPN) to ensure animproved and more cost-effective network service.

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To contribute towards national efforts to fightunemployment and reduce high levels of unemployment inthe country, the Department introduced several initiatives toassist the youth, particularly those from disadvantagedbackgrounds. These included a bursary programme, aninternship programme and a graduate programme, all ofwhich placed priority on people with disabilities as potentialbeneficiaries. These initiatives were not only inward-looking,but were also extended to land reform beneficiarycommunities. For instance, a partnership was formed withthe University of Fort Hare to provide project and farmmanagement training for land reform beneficiaries toaddress constraints identified during a research projectaimed at determining the reasons for the failure of someland reform projects.

Our empowerment programmes would be incompletewithout the integration and mainstreaming of gender. In thisregard the Department facilitated gender awareness andmainstreaming and also finalised both the GenderResponsive Budgeting Framework and the Older PersonsRights Framework.

From the communications angle, the Department initiatedan ambitious Knowledge, Attitude, Perception and Practice

(KAPP) survey to ensure the availability of researched andverifiable baseline information which indicates what thedifferent land reform stakeholders’ knowledge, perceptionsand attitudes are towards land reform and how, amongstothers, they currently access information from theDepartment. This information will be used as a reliablefoundation for the development of measurable interventionsand, in later years, as the basis to evaluate the impact ofcommunication interventions that have been implemented.

ConclusionThe year under review has seen a number of successes whichcontributed to the achievement of certain set targets ashighlighted in this Annual Report. While the Department isproud of these achievements, it is also acknowledged thatthere are many areas where performance and delivery can beimproved.

The 2008/2009 financial year may have been the last yearin which the Department performed as the Department ofLand Affairs, but the challenges and vision of land reformremain and will still be actively pursued by the Departmentof Rural Development and Land Reform.

Mr T T GwanyaDirector-General

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Aim of the VoteThe aim of the Department of Land Affairsduring the period under review was to providean equitable and sustainable land dispensationthat result in socio-economic development forall South Africans.

Key measurable objectives &programmes

part1 G E N E R A LI N F O R M A T I O N

Overview ofService Delivery

Environment

Voted funds Main Adjusted Actual Amount (Over)/UnderAppropriation Appropriation Spent ExpenditureR’000 R’000 R’000 R’000

6,659,396 6,659,396 6,654,636 4,760Responsible Minister Minister for Agriculture and Land Affairs *

AdministeringDepartment Department of Land Affairs *

Accounting Officer Director-General: Department of Land Affairs *

* These are the official names under which theMinistry and Department functioned over theperiod under review.

Programme

Programme 1: Administration

Programme 2: Surveys &Mapping

Programme 3: CadastralSurveys

Key measurable objective

Good governance of the Department.

Provision of accurate, up to date and accessible maps and other geo-spatial information, imagery and an integrated spatial referenceframework to enhance planning and monitoring of land reform,national infrastructure and sustainable development, nationally andregionally.

Approval, maintenance and archiving of cadastral survey documentssubmitted by land surveyors, supplying cadastral information andfacilitating the regulation of cadastral surveys, in order to support andfacilitate land development, with special emphasis on land reform.

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Service delivery environmentThe Department committed itself to the Batho Pele principlesin ensuring the delivery of services to all South Africancitizens. In this regard the Department, through its variousprogrammes, continuously strives to improve the wayservices are provided to its clients.

The Land Redistribution Programme delivered443,600.4886 hectares of white-owned commercialagricultural land as part of its contribution to the broaderDepartmental core objective of redistributing 30% ofcommercial agricultural land by 2014. A total of 501projects were finalised and 14 457 beneficiaries werereached through these projects. The annual target for

2008/2009 was 1 500 000 hectares however it had to bereduced to 608,060.0000 hectares in order to align it withthe actual budget allocation. Although the revised targetcould not be met, the Branch: Land and Tenure Reform spentalmost 100% of its allocated budget.

Under the Land Restitution Programme a total of 653claims were dealt with inclusive of 108 claims which weredismissed. This resulted in approximately 394 000 hectaresof land being approved for restoration, affectingapproximately 30 000 households. The annual target for2008/2009 was 1 034 000 hectares and 2 585 claims. Thesetargets were reviewed when it became known that thetenure of the Commission was to be extended.

Programme

Programme 4: Restitution

Programme 5: Land & TenureReform

Programme 6: SpatialPlanning & Information

Programme 7: DeedsRegistration (AuxiliaryServices)

Key measurable objective

Resolve restitution claims within the target period through negotiated settlements that restore landrights or award alternative forms of equitable redress to claimants.

Ensure that sustainable benefits of economic growth accrue to previously disadvantagedcommunities, groups and individuals.

Provision of legislative, institutional and technical skills support to regulate land use management,spatial planning and spatial information management within the public and private sectors.

To provide a high quality deeds registration system whereby secure titles are registered and speedyand accurate information is provided.

Departmental expenditure

GFS Classification Budget allocated R’000 Expenditure to date R’000 Expenditure as % of budget

Compensation of employees 612,728 610,553 99.6%

Goods and services 632,978 631,882 99.8%

Interest and rent on land 7 6 85.7%

Financial transactions in assets& liabilities - 2,361 -

Transfers to households 3,897,032 3,893,332 99.9%

Payment for capital assets 1,516,651 1,516,502 99.9%

TOTAL 6,659,396 6,654,636 99.9%

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part1 G E N E R A LI N F O R M A T I O N

StrategicOverview

& Key PolicyDevelopments

The policy and legislation development processduring 2008/2009 was critically influenced byvarious stakeholders such as government, non-governmental organisations, academics andthe general public. Draft policies on the WillingBuyer-Willing Seller principle and the ownershipof land by foreigners are available but furtherconsultations are necessary to finalise thepolicy options. Significant work was also donein respect of the evaluation of commentsreceived on the draft regulations to be issuedin terms of the Communal Land Rights Act.

An important achievement in the year underreview was the drafting and processing of theLand Reform: Provision of Land and AssistanceAmendment Bill which was enacted andpromulgated as Act No. 58 of 2008. Thisresulted in significant amendments to theProvision of Land and Assistance Act, 1993(Act No. 126 of 1993).

The amendment of Act 126 provided for asufficient legislative framework to continueimplementing the Pro-active Land AcquisitionStrategy (PLAS) and resolved certaininterpretation problems and importantshortages and challenges that bedeviled PLASprojects. The PLAS Implementation Frameworkwas amended to ensure the procedures thatare necessary to acquire, manage and disposeof assets acquired in terms of Act 126 aresufficient and has sound legal and policystanding.

The Department has been developing a newapproach to land and agrarian reform which isfocused on more effectively addressing thevarious aims of land and agrarian reform. Thenew approach will achieve this throughtargeting different identified categories oflandless or land hungry people based on theirland needs, their farming experience and their

access to resources and create developmentalpathways appropriate to the identifiedcategories. The approach provides foraddressing household-level food security andaddressing rights-based applicants at the lowerlevels by means of providing the very poor withthe opportunity to gain access to land toengage in farming. At the same time, itaddresses the transformation of agriculture byproviding opportunities and enhanced supportto existing black commercial farmers. Thedifferent categories that will be targetedthrough this new approach are:

� Category 1: Households with no individualaccess to land – those who have no spaceeven for subsistence production and seekland for small-scale subsistence purposes,with or without settlement.

� Category 2: Commercial-ready subsistenceproducers – those who wish and arecapable of having a more commercialfocus, mostly on a part-time basis, butneed appropriate land and support.

� Category 3: Expanding commercialsmallholders – those who have alreadybeen farming commercially at a small scaleand with aptitude to expand, but areconstrained by land and other resources.

� Category 4: Well-established blackcommercial farmers – those who havebeen farming at a reasonable scale, butare disadvantaged by location and othercircumstances, and with real potential tobecome large-scale commercial farmers.

� Category 5: Financially capable, aspirantblack commercial farmers – establishedbusiness people who wish to expand intoagriculture and who by and large will bepart-time farmers.

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C O N T E X T

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1Programme Administration

part2P R O G R A M M A T I CC O N T E X T

PPurposeTo render corporate services to theDepartment.

MeasurableobjectiveGood governance of the Department.

Intended impactImproved governance of the Department andaccountability for its resources.

IntroductionThe components that are part of Programme 1are mostly components that focus on specificcorporate and executive support or certainspecialised services. These components arestrategically located within two Branches –

� the Office of the Director-General; and� Corporate Services.

Office of theDirector-GeneralChief OperationsOfficerThe Chief Operations Officer (COO) of theDepartment is located within the Office of the

Director-General (ODG). The primaryresponsibility of the COO is to assist theDirector-General with the overall managementof the Department, especially from a strategicmanagement support perspective, as well asto ensure the oversight of organisationalperformance.

The COO is responsible for themanagement of various components in theODG. This includes the responsibility for thedevelopment and drafting of departmentalpolicies and legislation; stakeholder andinternational relations; risk and compliancemanagement; and the implementation ofstrategies related to transformation, vulnerablegroups and gender, to name a few.

CommunicationServicesIn line with the over-arching strategic objectiveof implementing needs-based, pro-active andanalytical communication interventions, theChief Directorate: Communications Servicesinitiated the Knowledge, Attitude, Perceptionand Practice (KAPP) survey as a flagship projectfor the achievement of this objective. Theintended outcome of the KAPP survey is theavailability of researched and verifiablebaseline information which indicates what thedifferent land reform stakeholders’ knowledge,perceptions and attitudes are towards landreform and how, amongst others, theycurrently access information from the

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Department. This information will be used as a reliablefoundation for the development of measurable interventionsand, in later years, as the basis to evaluate the impact ofcommunication interventions that have been implemented.Public surveys as well as focused group sessions have beenconducted in three provinces. Similar sessions in theremaining provinces will resume in May 2009. The project isto be completed towards the end of 2009.

To create a conducive environment for theimplementation of the Minister’s programme of action andthe Department’s strategic plan, the Chief Directorateundertook several communication initiatives, including theprovision of integrated marketing communication supportaround the Ilima/Letsema campaign. Furthermore, toimprove the availability and quality of information in respectof Departmental policies, programmes, services and projects,the upgrading of the Department’s website gainedmomentum towards the end of the financial year.

Financial constraints forced Communication Services toinnovate inexpensive and creative ways to communicate,publicise and clarify the Ministry and Department’s positionson various issues. Letters to the editors of variouspublications were used to great effect to position landreform in the public domain. Unfortunately several

communications projects such as the basket of opportunitiescampaign and the insightful media surveillance had to bepostponed to the 2009/2010 financial year.

As part of the process to manage the corporate identity ofland reform, the Department undertook an advertisingcampaign to position the role of the Department within thebroader development context taking place in the country.The campaign was augmented with the print mediaadvertising on various issues.

Public discourse on land reform cannot be left only to themedia who, in some instances have clearly reflectedinsufficient understanding of land and agrarian reform. Toaddress this challenge, Communication Services reviewed itsinteractions with the Media, known as the 4th Estate, andamongst others, put into place measures such as ensuringproper coordination of media interviews and responses tomedia inquiries. Further interventions include the issuing ofweekly media diaries to alert the media of majorforthcoming Ministerial and Departmental undertakings, aswell as dedicated and focused outings with members of themedia to strengthen relationships and to brief the media tobetter understand the nuances, successes and challengesrelated to land and agrarian reform.

Strategic objectives

Development of acomprehensive,proactive, analyticaland needs-basedcommunicationstrategy

Outputs

A client-approved, GCISguidelines compliant,comprehensive 1-yearcommunication strategyto support the Ministryand Department’sstrategic and operationalplans to support coreobjectives

Performance indicators

The development,implementation andevaluation of thecomprehensive, goal-orientated,client-sanctionedcommunication strategyover a 1-year period tosupport the Departmentin terms of internal andexternal communication

Targets 2008/2009

Review, update,implementation andmanagement of thecomprehensive 1-yearcommunication strategyin support of and alignedwith the 5-year MTEFcycle

Actual

• Strategy developedand submitted toGCIS on 9 April 2008

• Operational plandeveloped andimplemented toensure achievementof objectives of thestrategy.

Actual performance against targets

Executive ServicesThe Directorate: Executive Services is strategically located inthe Office of the Director-General to enable the provision ofimmediate and direct administrative, advisory and personalsupport to the Director-General. The Directorate comprisesthree specialised units, which report to the head of thiscomponent. These units are geographically organised basedon the services that they provide; to this end, the Sub-directorates: Administrative Support and Secretariat SupportServices are located in Pretoria, and the Sub-directorate:Parliamentary Support is located in Cape Town. The threeSub-directorates are cumulatively responsible for providingco-ordinated support within their respective areas ofresponsibility and channelling vital information to theDirector-General thus facilitating the effective performanceof his duties.

As a core function, the Sub-directorate: AdministrativeSupport is entrusted with the responsibility of continuouslyensuring that Ministerial and Director-General enquiries areprocessed without any delay. As a result of this rapidresponse, the Sub-directorate has managed to achieve aone-day turnaround time during the year under review andthis resulted in 1583 Ministerial and Director-Generalenquiries being disposed of to other components within the

Department. Over and above that function, the componentis also charged on a daily basis with tasks such as, theprocessing of submissions to and from the Director-General,ensuring the quality of submissions as well as decisivelyrendering advice to the Director-General in this regard. Inrespect of this remarkable service, a total of 1143submissions were processed based on an achievableturnaround time of two days.

The Sub-directorate: Secretariat Support Services wasestablished more than a year ago and since its inception hasprogressed successfully into a fully functional and cohesiveunit that renders an effective and professional service insofaras high-level meetings are concerned. These range frommanagement and inter-departmental meetings to meetingswith other government departments, non-governmentalorganisations and foreign delegations. Such meetings arechaired by the Minister for Agriculture and Land Affairs, theDirector-General of Land Affairs or are co-chaired by theDirectors-General of the Departments of Land Affairs andAgriculture. The Sub-directorate is responsible for recordingquality minutes and securing hospitable, user-friendly anddisability accessible venues. During the year under review,the Secretariat arranged several meetings, including aMinisterial Lekgotla, a Senior Management Service (SMS)Conference, a Strategic Planning meeting, three Quarterly

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Review and Assessment meetings, three Top Managementmeetings and seven Strategic Management Committeemeetings. A total of 33 meetings were minuted (includingthe Director-General’s 16 Ad Hoc meetings) and finalisedwithin specific turnaround times. In addition to its corefunction, the component implemented an effective follow-up system for decisions and allocation of tasks emanatingfrom meetings, developed a new meeting checklist andreviewed and revised membership to meetings. The unitculminated the year by developing an electronicDepartmental year planner that is currently posted on theDLA intranet.

The Sub-directorate: Parliamentary Support is primarilyresponsible for processing all Cabinet-related matters atdepartmental level, for monitoring and reporting onparliamentary activities, and for co-ordinating both thefulfilment of Parliamentary obligations by the Department, asdictated by the various regulatory frameworks, as well assecuring the attendance of the Director-General anddepartmental delegations at parliamentary events. Inaddition, this unit serves as a communication link not onlybetween the Department, the Ministry, the Deputy Ministryand Parliament, but also between the DLA, Parliament, otherstate departments and Ministries as well as civil society.

As part of its monitoring role, this unit assessed 529Cabinet Memoranda to ascertain their relevance and impacton DLA line functions and attended and reported on 44Parliamentary portfolio and select committee meetings whichcovered matters such as the Land Use Management Bill, theProvision of Land and Assistance Amendment Bill, budgetarymatters, annual reports and strategic plans of theDepartment, the Commission on Restitution of Land Rightsand the Ingonyama Trust Board. In addition, 40

Parliamentary questions were processed during this period.Parliamentary legislation tabled by other Departments, suchas the Prevention of Illegal Eviction from and UnlawfulOccupation of Land Amendment Bill, the South AfricanSpace Agency Bill and the Cross Boundary MunicipalitiesLaws Repeal Bill to name a few, were also monitored andreported on. A total of 204 parliamentary bills wereassessed.

GenderDuring this reporting year the Gender Unit focussed on twocritical outputs in its continued endeavour to facilitategender awareness, mainstreaming and the development ofstrategies. These outputs were the availability of operationaltools to fast-track mainstreaming and the management ofadvocacy programmes which are to be observed within theDepartment as well as externally with clients.

The Unit is proud to report that these targets wereachieved. In respect of the mainstreaming target, theGender Responsive Budgeting Framework was alreadyapproved in the second quarter of 2008, while the targetwas March 2009. In addition, the Older Persons RightsFramework was finalised and submitted for approval.

With regard to the advocacy programmes the Unit hadplanned four programmes but managed to coordinate five,namely the National Women’s Day, the World RuralWomen’s Day, the International Women’s Day, the SouthernAfrican Women Innovators and Inventors Symposium andthe 16 Days of Activism for No Violence Against Women andChildren.

The Gender Unit is commended for exceeding its targetsin the 2008-2009 financial year.


Development ofprogrammes forempowerment ofwomen, children andolder persons withinthe context of theDepartment’smandate

Outputs

Mainstreaming facilitated

Advocacy programmespromoted within theDepartment andexternally withDepartmental clients


Availability ofoperational tools to fast-track mainstreaming

4 advocacy programmesundertaken by theDepartment annually

Targets 2008/2009

2 approved operationaltools (Gender ResponsiveBudgeting and OlderPersons RightsFramework)

4

Actual

2

5


Internal Audit

PurposeThe purpose of the Directorate: Internal Audit is to provideassurance services in the form of internal audit services.

Measurable objectiveImprove internal control systems through effective internalauditing.

Service delivery objectives& indicatorsImprove the Department’s systems of internal controls.

Service delivery achievementsDuring 2008/2009, the Directorate: Internal Audit executedthe Annual Audit Plan and spent 23 500 hours on fourcomprehensive audit projects (including financial andoperational audits, performance audits, legal complianceaudits, fraud risk reviews and information technologyaudits), as well as one financial, operational and complianceaudit. The approved audit plan projects were executed at theDepartment’s national office and 17 provincially-basedoffices. The Directorate also completed 33 forensicinvestigation projects during the financial year while afurther 37 projects were in progress at year-end. Due tocapacity constraints within the component, seven projectswere outsourced. Internal Audit also assisted with the riskmanagement functions within the Department.

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Monitoring & EvaluationThe Monitoring and Evaluation (M&E) Directorate isresponsible for developing M&E systems and tools, as well asthe institutionalisation of the M&E function within theDepartment. It is also responsible for programmeperformance monitoring, programme evaluation andstatistical services.

In the year under review the M&E Directorate’s main aimwas to produce an improved M&E framework which formsthe basis of the above functions. The point of departure wasto facilitate the continuous improvement of Departmentalperformance, accountability and informed decision-makingthrough an effective M&E. This function will continuously beimproved. The Directorate achieved its target of producingan improved M&E framework, but also exceeded this target

by producing two additional documents, namely theProgramme Performance Monitoring and the Statistics &Information Management Guidelines.

The Directorate managed to achieve a higher degree ofreporting on Departmental performance by producing andpresenting quarterly performance reports at each QuarterlyReview and Assessment Meeting. It was realised that anelectronic M&E system that could be used as a performanceinformation repository will make it easier for Departmentalcomponents to submit information on a regular basis andfor such information to be verified. For this reason, anappropriate system has been purchased and will beimplemented in 2009/2010. It is envisaged that this systemwill ensure that requirements regarding performanceinformation set by Treasury and the Auditor-General are met.


Improvement of theMonitoring andEvaluationFramework

Outputs

ComprehensiveMonitoring andEvaluation Framework toprovide evidence-basedprogramme performancemonitoring, human rightscompliance reporting,evaluation studies of landreform; and baselineinformation forprogramme planning andevaluations


ComprehensiveMonitoring andEvaluation Frameworkdeveloped to produce:programme indicators,programme performancemonitoring annually,human rights complianceannually, Quality of LifeSurvey and baselineinformation forprogrammes

Targets 2008/2009

Framework forimplementation infinancial year 2008/09available by June 2008.

Actual

The DLA M&E Frameworkwas developed andapproved in February2009


Policy & LegislationDevelopmentThe Policy and Legislation Development Unit is responsiblefor the drafting, reviewing and assessment of policyguidelines aimed at amplifying the core objectives of theDepartment. The Unit is further responsible for the draftingof Departmental legislation (including subordinatelegislation) and the analysis of other legislation that mayhave an impact on Departmental functions. During2008/2009 the Unit built on a number of lessons emergingfrom various internal and external reviews and the ongoingimplementation of the land reform programmes.

In respect of the regulation of the ownership of land byforeigners, the Unit has done extensive research andconsultation which culminated in the drafting of a policy

framework and bill. On request of the executive furtherconsultation is taking place and it is envisaged that the policyand bill be finalised in the 2009/2010 financial year.

A third draft of the Willing Buyer-Willing Seller Review wasalso completed, however further work on the compensationformula linked to the expropriation model is to be finalisedin 2009/2010. The Unit also assisted in the finalisation of theProvision of Land and Assistance Amendment Bill. This Billwas approved by Parliament and promulgated as theProvision of Land and Assistance Amendment Act, 2008 (ActNo.58 of 2008).

Despite the capacity constraints faced by the Unit, workon the classification and collation of submissions received onthe draft Regulations under the Communal Land Rights Act,2004 (Act No. 11 of 2004), and the interrogation andevaluation of such comments were all completed during theyear under review.


Development ofpolicy guidelines toamplify the coreobjectives

Outputs

Implementable policies,legislative and regulatoryreforms to intervene inthe land market


Availability of a newpolicy regulating theownership of land byforeigners in South Africa

Targets 2008/2009

Approved andimplementable policyregulating ownership ofland by foreigners inSouth Africa (availableSeptember 2008)

Actual

A draft policy frameworkand bill were finalised.Further consultation withkey governmentdepartments is to befinalised in the2009/2010 financial year.


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Development ofpolicy guidelines toamplify the coreobjectives (continued)

Outputs

Implementable policies,legislative and regulatoryreforms to intervene inthe land market(continued)

Implementable policies,legislative and regulatoryreforms to benefit peopleliving on communal landand State land


Availability of the willingbuyer-willing sellerprinciple review reportand regulatorymeasures/approachesunderpinned by a pricedetermination formulaproviding for Stateintervention in the landmarket

Availability of new policyon land ceilings

Availability of theamended White Paperthat addresses therecommendations of theLand Summit

Availability of (a)Communal Land RightsAct Regulations and (b)Deeds RegistriesAmendment ActRegulations (CLaRA-related) which entrenchesdemocratic landadministration system

Availability of theamended Regulation 18of the Deeds Registries togive effect to compulsorydisclosure by nationality,race, gender and otherinformation for theregistration of titles, past,present and future alongFICA requirements

Targets 2008/2009

Approved willing buyer-willing seller principlereview report andimplementableregulatorymeasures/approachesunderpinned by a pricedetermination formulaproviding for Stateintervention in the landmarket (availableSeptember 2008)

N/A(No target set for2008/2009)


Two sets of regulationsdrafted and extensiveconsultations undertakenin all provinces exceptKwaZulu-Natal (KZN).


Actual

A gap analysis of thethird draft of the policyframework has beencompleted. Furtherconsultation on thecompensation aspects isto be finalised in the2009/2010 financial year.

Although there is notarget for this output inthe 2008/2009 financialyear, a draft policy hasbeen developed.However, the finalisationof the policy has beenplaced on hold pendingthe review of the WhitePaper.

The Unit developed aprocess map for thereview and redrafting ofthe White Paper. Thetarget date for thefinalisation thereof is2010/2011.

Two sets ofimplementableRegulations, one underthe CLaRA and one underthe Deeds RegistriesAmendment Act (CLaRA-related), December 2008

The target for this outputis September 2009.The project has howeverbeen aborted as theintended outcome couldnot be achieved throughthe amendment ofRegulation 18. Theprinciple is to be dealtwith in the proposedLand Protection Billwhich forms part of theoutput on the regulationof the ownership of landby foreigners.


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Risk & ComplianceManagement

PurposeThe proactive identification and understanding of factorsand events that may impact on the achievement of strategic,operational and compliance objectives, followed by themanagement, monitoring and reporting of these risks.

Measurable objectiveImplement risk management and compliance managementstrategy and risk management implementation planthroughout the Department. Availability of a formal structureof risk reporting and monitoring.

Service delivery objectives &indicatorsImproved risk management awareness and regulatorycompliance by the Department of Land Affairs.

Service delivery achievementsDuring 2008/2009, the Directorate: Risk and ComplianceManagement re-established the reporting structure of riskswithin the Department. The Risk & Compliance Committeewas also re-established to monitor the risk profile of theDepartment.

Security Management ServicesAs one of the support functions of the Department, theDirectorate: Security Management Services is responsible forensuring the implementation of safety and security standardsand services throughout the Department. The componentmanages a complete security function in respect ofpersonnel, physical, document, communication, computerand surveillance security. This is done to ensure a healthyand safe working environment.

During 2008/2009 the Directorate focussed mainly onimproving physical security measures by standardisingsecurity operations for all Departmental offices. Physicalsecurity measures such as automated access control andCCTV camera systems were installed at most Departmentaloffices in Limpopo, as well as at the Provincial Land ReformOffice in Gauteng, the Deeds Office in Vryburg andDepartmental offices in Mpumalanga (with the exception ofthe Deeds Office, the Regional Land Claims Commission andthe Witbank district office). Furthermore, the Directoratemanaged to finalise the technical security specifications foroffices in KwaZulu-Natal, the Western Cape, Eastern Cape,Northern Cape and Free State.

A security vetting unit has been established to fast-tracksecurity vetting processes and the post of ICT SecuritySpecialist was filled.

The Directorate continuously strives to enhance safety andsecurity measures in the Department.


Provision of adequatesafety and securitysystems that ensureprotection of Stateassets andinformation

Outputs

Implemented Securitypolicy in line with MISSand other NationalSecurity Directives

Implemented OHS policyand related safetyregulations


Standardised physicalsecurity systems

Safe and secure workingenvironment andpractices

Targets 2008/2009

Four provinces bySeptember 2008

Review the SmokingPolicy, March 2008

Actual

By October 2008, securitysystems were provided in12 offices located in thefour targeted provinces.

The Smoking Policy wasreviewed, however itcould not be finalised asit could not serve at theDepartmental BargainingCouncil during2008/2009.


Branch: Corporate ServicesIntroductionThe business world is changing rapidly and each day newissues and problems appear that require specialised supportservices. It is not possible for line managers to have the timeand all the skills needed for each required field and hencethe need for a specialised Branch: Corporate Services, whichcan provide quick solutions. Corporate Services thereforeprovides line functions with advisory support services toensure that the Department works more efficiently andeffectively.

The nature of the activities of the Branch is both supportand advisory and consists of the following functions:

� Chief Directorate: Business Information Management- Information and communication technologies- ICT procurement services

- ICT standards and solutions- Systems availability

� Chief Directorate: Human Capital and OrganisationalDevelopment - Human capital management services- Human capital training and development services- Organisational design services- Organisational transformation- Legal support and litigation services

� Chief Directorate: Financial Management Services- Financial accounting- Management accounting- Demand management- Acquisition management- Facilities and office management- PPP building project

The most important strategic deliverables of the Branchare reported on as follows:

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Business InformationManagement

Implementation of a VirtualPrivate NetworkThe Department has, after extensive engagement with theState Information Technology Agency (SITA) implemented aDepartmental Virtual Private Network (VPN). The VPNensures Departmental control of its network. The VPN alsoensures improved and a more cost-effective network service.It further provides the architectural foundation for thedeployment of productivity improvement tools such as videoconferencing and collaboration software.

Long term ICT strategic planA five-year ICT Strategic Plan was developed that provides atechnology roadmap aimed at moving the Department toworld class ICT capabilities. This strategy will be finalisedduring the early part of the new financial year.

Development & deployment ofICT business solutionsThe Branch assisted various business units with the planning,analysis, development and deployment of business solutionsaimed at improving operational efficiency and servicedelivery to customers. These are at various stages ofdevelopment and include:

� Restitution management (Umhlaba Wethu)� Balance of grants management� Land reform project tracking� Organisational transformation surveys� Internet/Intranet revamp� Financial administration website revamp.

Capacity building in ICTThe Chief Directorate: Business Information Managementwas traditionally a consultant driven component. Thisstrategy was reviewed due to the cost involved and theexternal dependencies created by such an approach. Anorganisational structure was developed and approved. Arigorous recruitment drive was subsequently embarked uponin support of the implementation of the amended structureas well as boosting capacity to further improve ICT servicedelivery. The scarcity of skills in this environment is still asignificant challenge which is further aggravated by the non-competitiveness of public service salaries for these skills.Notwithstanding these challenges 11 out of 17 advertisedposts have been filled.

Human Capital &Organisational Development

Development of an integratedHuman Resource Plan for theDepartmentThe Human Resource Plan of the Department was reviewedand aligned to the framework issued by the Department ofPublic Service and Administration during the financial year.

The plan addresses the recruitment of staff in accordancewith the additional capacity required in respect of allDepartmental strategic objectives, including theredistribution of 30% white-owned agricultural land by theyear 2014. The plan will further guide the execution ofhuman resource management activities to support theachievement of Departmental strategic objectives. As we areoperating in a dynamic environment, the plan will bemaintained as a living document to be reviewed as andwhen it becomes necessary to ensure that the Departmentkeeps abreast of developments affecting operationalrequirements. The implementation of this plan will resumeat the end of this reporting year.

Recruitment and selectionThe Department initiated a recruitment programme duringNovember 2006. This is an ongoing programme aimed atreducing the number of vacancies and addressing thecapacity needs of the Department. Key milestones achievedthrough this project include, inter alia, the reduction ofvacancies from 22.6% in 2007/2008 to 16.5% in2008/2009. In addition to the filling of existing posts, 32%of the new and prioritised posts on the amended structureof the Department were advertised. This process will beintensified through the proactive development of time-bound recruitment plans during the next financial year.

A significant number of vacancies are filled throughinternal promotions, resulting in internal recycling of staff.Although this is positive for the career development andretention of staff, it is the main reason why the vacancy ratewas not reduced to 10% as intended. A further challengethat affects progress in reducing the vacancy rate to thedesired level is the shortage of suitably qualified candidates,resulting in the costly re-advertisement of vacancies andprotracted head-hunting processes.

Exit interviewsThe strategy to retain staff has become a key focus area inreducing the vacancy rate. An exit management frameworkwas developed and implemented. An external serviceprovider was appointed to objectively interview a sample ofstaff leaving the Department to obtain the reasons for themleaving. The Department has now established dedicatedinternal capacity to focus on exit management and continueto improve retention policies and practices.

Labour relationsDuring the previous financial year it was determined thatmanagers and supervisors require capacity to discipline staffand to effectively resolve grievances. The Departmenttherefore initiated a capacity building project with theintention to empower managers and supervisors in respectof labour relations management. The project enabledmanagers to familiarise themselves with what is expectedfrom them in terms of their management responsibilitiestowards staff and maintaining discipline in the Department.A total of 391 managers and supervisors were trained. Thetraining focused on the management of grievances, as wellas disciplinary and dispute resolution procedures. TheDepartment intends conducting an impact analysis duringthe next financial year to determine the extent to which thisproject had contributed towards improving labour relationsin the workplace.

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Employee Wellness ProgrammeThe Department has a well established Employee WellnessProgramme (EWP). The strategic target of this programmewas to involve 80% of the Department’s staff in the activitiesof the programme. The majority of staff participated inhealth promotion sessions which included health screening,voluntary counselling and testing for HIV and relatedmatters. Other activities of the programme include psycho-social counselling and stress relief.

Bursary programmeThe bursary programme focussed on areas of scarce skillswhich are difficult to find through the normal recruitmentprocess. Prospective students who wish to obtain degreesand diplomas in geomatics, surveying, town and regionalplanning and cartography at various tertiary institutions inthe country were attracted through invitations published inthe national and certain local media. Currently a total of214 bursary holders are participating in the programme.Students are also afforded the opportunity to do theirexperiential learning in the Department during their holidayswith allocated mentors in order to fulfil requirements fortheir qualification. Specific emphasis is placed on attractingwomen and black youth from disadvantaged and ruralcommunities.

Career exhibitions were held in Pietermaritzburg, Soweto,Kimberley, Durban, Cape Town and Pretoria, as well as at theYouth in Agriculture and Rural Development Conferencewhich took place in Pretoria.

The Department awarded 41 new bursaries for studentsto study BSc Geomatics in 2009 at the University of CapeTown and at the University of KwaZulu-Natal. Memorandaof Understanding have been signed with these twoinstitutions. At the end of 2008, 43 students completedtheir studies in BSc Geomatics and Town & RegionalPlanning. These students were subsequently employed by theDepartment in the Chief Directorate: Cadastral SurveyManagement and the Chief Directorate: Spatial Planning andInformation.

Internship programmeThe Department recruited 246 interns during this reportingyear. The main focus of this programme is to provide internswith work experience over a 12-month period. Interns wereallocated mentors and specific learning programmes weredeveloped which support their field of study. A total of 66interns subsequently received permanent employment in theDepartment and other government Departments. Theinterns also attended various training programmes such asthe induction programme, project management, jobevaluation, supply chain management, labour relations andcomputer training.

Graduate programmeIn addition to the internship programme, the Departmentalso implemented a Graduate Programme. This programmeis a four-year programme and differs from the internshipprogramme in the sense that these graduates are appointedon a permanent basis and are contractually bound to theDepartment. The Department employed 128 graduates ofwhom seven are persons with disabilities. This programmeintends to address the high vacancy rate and the highunemployment rate of the youth. A total of 88 graduates

were placed in the Deeds Offices, 33 in the Branch: Land andTenure Reform and seven in Corporate Services. Allgraduates attended a compulsory induction programme ofthe public service. Mentors have been allocated to guidetheir learning process. The graduates in the Deeds Officeshave commenced with the Examination of Deeds training.

Training of land reformbeneficiariesThe Department in conjunction with the University of FortHare developed a dedicated training programme in projectmanagement and farm management for land reformbeneficiaries. The programme was developed after aresearch project was conducted to determine the reasons forthe failure of certain land reform projects and the skills levelsof the beneficiaries. The training in isiXhosa was piloted inthe Eastern Cape in the districts of Tshatshu, Chatha andDwesa Cweba. A total of 203 beneficiaries received trainingand 90 beneficiaries received Certificates in ProjectManagement and Farm Management during November2008 from the University of Fort Hare. This project will beextended to other land reform beneficiaries in the newfinancial year.

Batho Pele programme The Department continued to train employees on theDepartmental Batho Pele Revitalisation Strategy (BPRS). TheDepartment’s BPRS is informed by the Service DeliveryImprovement Plan, Service Excellence Awards Policy as wellas the Complaints Handling Policy and Procedure Manual. Inorder to mainstream and institutionalise Batho Pele, 440employees were trained on customer care and 153 oncomplaints handling and management. The Departmentestablished a cross functional Batho Pele forum comprisingrepresentatives from most chief directorates. The forum wasinvolved in various projects including the “name tagsproject” during which 2 914 name tags were produced foremployees.

The Department also participated in the Public ServiceWeek and Africa Public Service and Fun Day celebrations.

Employment Equity programme The Employment Equity Plan of the Department was updatedquarterly to ensure that employment equity targets arecarefully monitored. The Employment Equity Status Report2007/2008 as submitted to the Department of Labourduring October 2008 was posted on the intranet to ensureaccess to it by all staff. The report outlines successes,challenges and the degree of compliance in order to intensifyefforts towards achieving employment equity targets in theDepartment

Youth & disability empowermentstrategiesThe empowerment of youth and people with disabilitiesremains a top priority for the Department. A workforceanalysis survey was conducted to update disability statistics.The survey confirmed that the Department employs 98 staffmembers with disabilities, which amounts to 2,4% of theDepartment’s staff.

The Department celebrated the International Day ofPersons with Disabilities and World AIDS Day in onecelebration which was attended by 293 employees.

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The Minister officially launched the Braille Atlas. Duringthe launch, 23 Braille Atlases were handed to organisationsand schools that support blind persons in Gauteng and 24Braille Atlases were handed to organisations and schoolsthat support blind persons in the Free State and theNorthern Cape.

The Minister also launched the Youth in Agriculture andRural Development (YARD) programme in Pretoria. Thislaunch was attended by 902 youth.

Organisational structure &establishmentThe amendment of the organisational structure has beenfinalised and the implementation of certain areas of prioritywas approved. One of the most significant changes is thesplit of the Land and Tenure Reform Branch into twobranches to be known as Region 1 and Region 2. Region 1will comprise of five provinces, namely Mpumalanga,Gauteng, Northern Cape, Western Cape and Eastern Cape,while Region 2 will comprise of the provinces of KwaZulu-Natal, Limpopo, North West and Free State as well as thenational office land reform components.

The amended structure could only be partly funded dueto financial constraints. The funding available has beenprioritised in those components of the Department whereservice delivery is directly affected. The following number ofposts at different levels has been approved:

Component Number of posts

Office of the Director-General 31

Corporate Services 132

Deeds Registries 374

Cadastral Surveys 13

Internal Audit 34

Land Reform 620

TOTAL 1 204

An important aspect of the amendment of theorganisational structure was the development of generic jobprofiles for all occupational classes and the job evaluation ofthese profiles. These job profiles represent 973 jobdescriptions that cover 7 219 posts which will be createdover the next five years as and when additional fundingbecomes available.

Provision of a new nationaloffice buildingThe Department has for some time considered the possibilityof obtaining a new building for its national and otherPretoria-based offices. The Pretoria-based operations of theDepartment are accommodated in six different buildings,which result in several inefficiencies. Attempts to secure asuitable existing building were not successful. TheDepartment decided to explore the possibility of a PrivatePublic Partnership (PPP) as contemplated in Chapter 16 ofthe Treasury Regulations.

This process is currently well underway. The Departmentreceived Treasury Approval II A from the National Treasury forreleasing the Request for Qualification (RFQ) which wasissued on 23 September 2008. Subsequently, an RFQ briefingsession was held with 55 interested parties on 30 September2008. The RFQ evaluation was finalised in January 2009resulting in three Consortia being selected for the next stageof Request for Proposal (RFP). In December 2008, theDepartment of Public Works signed the purchase agreementfor the Berea Park site for the new building. The Departmentis currently finalising documentation for submission toNational Treasury for approval to proceed with the release ofthe RFP as part of the procurement process.

Legal mattersThe Royal Bafokeng Nation and others lodged a case againstthe Minister for Agriculture and Land Affairs wherein theyrequested the court for an order declaring certain propertiesin the Rustenburg area to be registered in their name andfurther, that registration of the properties in the name of theMinister as a trustee be declared unlawful. The matter is stillsub judice. The possibility of a settlement between theparties is being explored.

The court case on the Communal Land Rights Act, 2004(Act No. 11 of 2004)(CLaRA) commenced before the currentreporting year. It was instituted by four applicants fromcommunities in Mpumalanga and North West who havebrought an application in the Pretoria High Court declaringthe provisions of CLaRA and the Traditional Leadership andGovernance Framework Act, 2003 (Act No. 41 of 2003), tobe invalid and unconstitutional. The matter was consideredby the court from 14 to 17 October 2008, howeverjudgment was reserved. The judgment is still awaited as atthe end of the reporting year.

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Strategic objective

Creation of anenabling environmentfor improved servicedelivery throughleadership alignmentand appropriateorganisational cultureand architecture

Outputs

Improved ServiceDelivery


Optimised BusinessArchitecture(organisationalstructure,establishment,processes, HumanResource [HR] plan,information andtechnology) thatachieve departmentalstrategic objectives

Degree of complianceto Batho Pele principles

Adequate HR capacity –Scarce Skills

Implement Scarce SkillsPlan

Targets 2008/2009

10% Non-achievedobjectives

100%

2 Progress Reports

Reduce vacancies inold structure tobelow 10%

15% of posts in newstructure filled

100%

Actual

Achieved• Organisational structure

completed – only prioritisedand funded posts in certaincomponents approved

• Establishment was updated• Business process maps were

finalised and are storedelectronically

• Existing and new posts werejob evaluated

• The HR Plan wasdeveloped and is awaitingapproval

• VPN was successfullyimplemented

• MSP Review was completedend of March 2009

• The ICT Strategy for the next 5years has been developed.

Not achieved• Service Delivery Improvement

Plans for 2008/2009 notsubmitted by all ChiefDirectorates

• Two performance quarterlyreports received

• Standards set in the SDIP werenot implemented.

Not achieved• 1 Report was submitted

Not achieved• Vacancies were reduced to

16,5%

Not achieved• 32% of posts were advertised• 8% of posts in the amended

structure were filled.

Achieved• 9 Scarce skills career

exhibitions/open days were heldtargeting Grade 12 students

• 173 Bursary students arestudying for diplomas anddegrees in Geomatics, Townand Regional Planning,Cartography and Surveying

• 41 New bursaries wereawarded for BSc Geomaticsstudies commencing in 2009 atthe Universities of Cape Townand KwaZulu-Natal

• 27 Students completed studiesin Geomatics and wereemployed

• 16 Students completed studiesin town and regional planningand were employed.


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Financial ManagementThe Chief Directorate: Financial Management consists of –

� the Directorate: Financial Administration;� the Directorate: Management Accounting; and� the Directorate: Supply Chain Management.

Directorate: ManagementAccountingThis Directorate performs a variety of functions including themonitoring of financial performance, especially as it relatesto operational performance. This is done through regularinteraction with the various Departmental Programmes. Inaddition, reporting on financial performance is done tostructures such as the Strategic Management Committeewhich meets regularly to discuss strategic matters. Earlywarning systems were also put in place to monitor spending.

The Department has managed to spend 99.9% of theadjusted budget in the 2008/2009 financial year, comparedto 99.5% in 2007/2008. The commendable spendingperformance of R6,66 billion is largely attributable to theinitiatives put in place to fast-track the settlement ofrestitution claims, as well as the acquisition of land at scalein accordance with the provisions of the Pro-active LandAcquisition Strategy (PLAS) for redistribution purposes.

Directorate: Supply ChainManagementDuring the 2008/2009 financial year this Directorate ensuredthat the capital and non-capital assets that were procuredduring the year were properly captured on the BAUD AssetRegister. The Directorate achieved compliance with allrelevant minimum requirements, as well as with the AssetManagement Reforms (AMR) milestones. There were noresolutions by the Standing Committee on Public Accounts inrespect of the vote or the Deeds Trading Account.

A functional and effective call centre has beenestablished. This call centre serves as a supply chainhelpdesk to address all supply chain related enquiries of bothinternal and external clients. Furthermore, a documentcontrol system has been established to ensure thatdocumentation are not lost.

Directorate: FinancialAdministration The Directorate ensured that policies on Surveyor-Generaldebtors and Lease Revenue Management were in place,while the reconciliation of lease debtors was performed. TheDepartment however received audit qualifications in respectof the following:

� Receivable for Departmental revenue:The reconciliation on receivables on State Land leasesand land acquired in terms of PLAS was performedduring the year to ensure accuracy and completeness. Asimilar exercise was done in respect of the interestreceivable on pre-payments.

� Balance of grants:With the assistance of provincial land reform officials,the register of projects was scrutinised and re-worked toensure the correctness of information. There werehowever various challenges in obtaining information onprojects that were captured on the FinancialManagement System, especially since these projectsrelate to financial periods prior to 2004. Nevertheless, allprojects that were captured on the Basic AccountingSystem have been reconciled. An in-house system forthe management of balance of grants was developedand the relevant financial reports will in future begenerated by this system. This includes statements andage analysis.

� Advance payment to conveyancers:A plan was developed to establish proper control overadvance payments made to conveyancers and to audit

Strategic objective

Creation of anenabling environmentfor improved servicedelivery throughleadership alignmentand appropriateorganisational cultureand architecture(continued)

Outputs

Improved ServiceDelivery (continued)


Percentage of Trainedand Skilled HumanResources

Degree of participationin EWP

Targets 2008/2009

20%

80%

Actual

Achieved• 4 208 Officials attended various

training programmes in linewith personal developmentplans and Departmentalpriorities

• Courses attended amongstothers were:-- Project management- property valuation- risk assessment and

management- negotiation and conflict

management- deeds registration- financial management- effective media relations- free and open source

software for geospatial- monitoring and evaluation

reporting.

Achieved• 90% participated.


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payments received since 2004. Schedules of all affectedtransactions have since been drawn and thereconciliation thereof is still in process. Through theLegal Unit of the Commission on Restitution of LandRights, letters of demand were sent to various defaultingconveyancers. As a result, a total of R34 million wasreceived by 31 March 2009 of which R18 million wasrecovered in the 2008/2009 financial year. In caseswhere conveyancers did not respond to the letters, theState Attorney has been requested to proceed with legalaction against those conveyancers.

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2Programme Surveys& Mapping

part2 P R O G R A M M A T I CC O N T E X T

PPurposeProvide national mapping, earth imagery,integrated spatial reference framework andother geo-spatial information in support of thenational infrastructure and sustainabledevelopment, as mandated by the Land SurveyAct, 1997 (Act No. 8 of 1997). Provideprofessional and technical services in supportof land reform and other public services.

MeasurableobjectiveProvision of accurate, up to date andaccessible maps and other geo-spatialinformation, imagery and an integrated spatialreference framework to enhance planning andmonitoring of land reform, nationalinfrastructure and sustainable development,nationally and regionally.

Intended impactEffective policy-making and developmentplanning (socio-economic sustainabledevelopment, poverty alleviation, jobcreation); Improved efficiencies of servicedelivery by organs of State; SupportGovernment capacity to deliver (e.g. landreform, security, environmental conservation;

food security, disaster management, basicservices); Effective force in global relations.

Service deliveryobjectives &indicators The Surveys and Mapping programme consistsof a single sub-programme of the same name,namely Surveys and Mapping, which isresponsible for the following:

� Promoting and controlling all mattersconnected with geodetic andtopographical surveying and geo-spatialinformation services;

� conducting geodetic, topographical andother relevant survey operations;

� acquiring aerial photography or otherremotely sensed imagery;

� establishing and maintaining a nationalcontrol survey system;

� preparing, compiling and amending suchmaps and other cartographicrepresentations of geo-spatialinformation;

� taking charge of and preserving therecords of all geodetic and topographicalsurveys, maps and aerial photography orother remotely sensed imagery; and

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� providing professional and technicalsupport and client services.

Service deliveryachievements Integrated spatial referenceframeworkThe unique national spatial reference framework of thisprogramme provides South Africa’s national control surveynetwork. Due to a revised beacon maintenance schedule, theNational Control Survey System has been available to clients99% of the time in the reporting year, exceeding the settarget by 4%. The network of continuously operating globalpositioning system (GPS) base stations, TrigNet, has beenimproved to ensure a reliable service by installing more basestations (52 in the reporting period) and replacing ageingequipment and software. This resulted in the network beingavailable 97.5% of the time, exceeding the target by 2.5%.

Acquisition of earth imageryThe national aerial photography and imagery archive is ofnational importance and is seen as a major output of thisProgramme, providing coverage of the whole country or1,22 million km². In 2008/2009, aerial photographycovering 163 688 km² were acquired against the initialtarget of 220 000 km². The target was subsequentlyamended to 190 000 km² as a result of delays in the tenderprocess. An underachievement of 26 312 km² can beattributed to the delay in the contract being awarded andthe seasonal weather conditions over Limpopo, KwaZulu-Natal and Mpumalanga which affected flying negatively.

Maps & other geo-spatialinformationIn the year under review, 159 375 km² of fundamental geo-spatial data was updated against the set target of 150 000km². This target has been exceeded by 9 375 km². Thenational mapping programme was on track and 2 146 maps

were produced, which resulted in 532 more maps than theset target of 1 614 maps.

The development of the national land cover mapping wasunfortunately not completed due to delays in the acquisitionof technologies and the loss of key expertise. A Land CoverField Reference Guide will be contracted out, as well as adraft report on land use methodology (user needrequirement) will be made available. In an effort to empowerpeople with disabilities, the Chief Directorate is well on trackto develop maps for visually-impaired citizens. The BrailleAtlas of South Africa, a first for South Africa and probablythe African continent, produced by the Chief Directorate wasofficially launched by the Minister for Agriculture and LandAffairs in March 2009.

Geo-spatial informationproducts & servicesThe turn-around time for supplying geo-spatial informationto clients was well within the service delivery standard,exceeding the set target by 10%. There is a growing demandin the country for map literacy and map awareness trainingamongst clients and other stakeholders. This demand isclearly demonstrated by the over-achievement of 44workshops against the target of 18 workshops in thisoutput.

Professional & technicalsupport & client servicesIn assisting other organs of State with professional andtechnical advisory and support services, the target ofresponding within 5 days was exceeded when a responsetime of 4 days was achieved. The Chief Directorate hasoverachieved in rendering professional support to landreform programmes. The contribution that the ChiefDirectorate made to promote the African Agenda is of highimportance. This was done through development projectssuch as the Mapping Africa for Africa and African GeodeticReference Frame (AFREF) projects. The overall contributionof this component and the completion of project tasks arerated at 98% against the target of 90%.


Provide fundamentalgeo-spatialinformation servicesto the nation

Outputs

Integrated SpatialReference Framework

Earth imagery (aerialphotography/satelliteimagery) covering thewhole country (1.22million km²)


Percentage of availabilityat all times of permanentspatial reference pointsand positioning servicefrom TrigNet stations

Number of km² of earthimagery acquired by 31March

Targets 2008/2009

95% availability

High resolution:

220 000 km²;

(amended target:

190 000 km²) (1)

Medium resolution:

0 million km²

Actual

Target exceeded.Permanent spatial referencepoints: 99% availability Average uptime (availability)97.7% for post processingservices and 97.3% for realtime services.

Target not achieved.163 688 km² acquired. Thisis due to the delay in theawarding of tenders whichin turn resulted inphotography to be flownoutside of the windowperiod. A further factor waspoor weather conditions inLimpopo, KwaZulu-Nataland Mpumulanga.


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Provide fundamentalgeo-spatialinformation servicesto the nation(continued)

Participation inrelated land andagrarian reformactivities andprogrammes aimedat consolidation ofthe African Agenda

Outputs

Maps and other geo-spatial informationcovering the wholecountry (1.22 millionkm²)

Professional and technicalsupport and clientservices (other than landreform) to all spheres ofgovernment and otherorgans of State

Development projects forNEPAD, particularly inSADC (eg. AFREF,Mapping Africa forAfrica)


Completion of theintegrated database offundamental geo-spatialinformation by 31 March2012, through thecapture and revision oftopographical data

Number of up-to-datemaps produced/revisedduring the year

Client satisfaction rating(out of 5)

Average number of daystaken to respond toclient’s request

Successful completion(%) of project tasksallocated, in accordancewith project plan forregional development

Participation rating of 3(out of 5) in regional andsub-regional structures asapproved (e.g.Committee onDevelopmentInformation; RegionalCentre for Mapping ofResources forDevelopment (RCMRD))

South Africa'smembership of RegionalCentre for Mapping ofResources forDevelopment (RCMRD)maintained

Targets 2008/2009

150 000 km²

1614 maps

Average rating of 3out of 5 in clientsurveys

5 days

90%

3

March 2009

Actual

159 375 km²Target exceeded.

2146 mapsTarget exceeded.

Average score received fromclients that have responded,is 4.Target exceeded.

4 daysTarget exceeded.

98%Target exceeded.

4.9 Target exceeded.

July 2008.Significant contributionmade. Target exceeded.


(1) Target amended as a result of delays in the awarding of bids, which in turn resulted in aerial photography to be flown outsideof the window period. The programme of work therefore had to be reduced.

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P


3ProgrammeCadastral

SurveyManagement

PurposeThe Chief Directorate: Cadastral SurveyManagement aims to ensure that accuratecadastral surveys are carried out and toprovide cadastral information services insupport of land delivery and orderlydevelopment.

MeasurableobjectiveApproval, maintenance and archiving ofcadastral survey documents submitted by landsurveyors, supplying cadastral information andfacilitating the regulation of cadastral surveys,in order to support and facilitate land andeconomic development, with special emphasison land tenure reform.

Intended impactEach secure land right provides a source ofwealth, a negotiable asset and a platform forinvestment for the rights holder, thuscontributing to poverty alleviation and socio-economic development.

Service deliveryobjectives &indicatorsThe Chief Directorate is mandated to performits functions through the Land Survey Act,

1997 (Act No. 8 of 1997). This programmeconsists of a single subprogramme of thesame name, responsible for the following:

� Regulation of Surveyor-General’s offices� Examining and approving all surveys for

the registration of land and real rights� Maintaining cadastral survey records� Archiving all cadastral surveys� Compiling, maintaining and revising maps

of property boundaries� Providing cadastral advisory and spatial

information services.

A secure system ofcadastral surveysThe function of approval of cadastral surveys iscarried out in the six Offices of the Surveyors-General situated in Bloemfontein, Pretoria,Cape Town, Pietermaritzburg, Polokwane andNelspruit. Despite the continuing critical staffshortages in both the professional andtechnical categories, and the increasedworkload resulting from the boom in theproperty market, these Offices, with theexception of the newly created PolokwaneSurveyor-General Office, managed to limit theturnaround time to less than 20 working days.This is a world class performance as theinternational norm is between two and threemonths. This was achieved through thecontinued improvement of internaltechnological systems and procedures such asenhanced cadastral information system, auto-emailer and multi-media lodgement which

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was implemented at the Office of the Surveyor-General: CapeTown and later in all offices, the restructuring of offices, andovertime work by officials.

In terms of production statistics, during this financial yearthe six offices managed to process 328 869 property units,of which 264 963 (81%) were approved and 121 517 (19%)units returned or rejected. The monetary value of theregisterable property units amounts to R208 144 million.

Cadastral Spatial InformationThe Cadastral Information System aims to create a digitalenvironment for the South African cadastre in the Offices ofthe Surveyor-General. It consists of three components,namely the alpha-numeric, document image and spatialcomponents.

Key components of the Cadastral Information Systemwere enhanced to increase efficiency in service delivery, bothto the general public and other stakeholders. The software

modules are continuously evaluated and enhanced. The“Auto E-mailer” system continued to bring about a dramaticimprovement in the delivery time for electronic images andeliminated the need for any human intervention. Thenumber of requests for cadastral spatial data and digitalimages continued to increase tremendously. The supply ofcadastral spatial data has rendered the services of the LandReform and Restitution Programmes more efficient.

The website of the Chief Surveyor-General(http://csg.dla.gov.za) continues to be a fast and efficientway of obtaining spatial cadastral data.

Training Unit in the ChiefSurveyor-General’s OfficeThe Chief Directorate has established a centralised trainingunit which consist of four lecturers. The aim of the trainingunit is to train survey officers. In 2008/2009, 67 pupil surveyofficers received theoretical and practical training.


Provision of efficientland use and landadministrationservices

Outputs

Registerable diagrams,general plans andsectional title plansapproved, maintainedand archived in terms ofthe Land Survey Act,1997 and Sectional TitlesAct, 1986

Complete and currentspatial informationpertaining to all landparcels in South Africa, inboth paper and digitalformat

Cadastral surveymanagement servicessupplied in all provinces


Number of days taken toprocess 95% ofdiagrams, general plansand sectional title plans.(Time, Quantity)

Percentage of approvedcadastral documentswhich are registerable.(Quality)

Number of working daysfor newly created landparcels added todatabase.

All requests forinformation fromgovernmentdepartments, landsurveyors and the publicprocessed within 5working days, withoutany valid complaintsabout the completenessor accuracy of the data.

One new Surveyor-General’s officeestablished in terms ofthe Land Survey Act inthose provinces currentlywithout such an office by31 March 2011 so as torender cadastral surveymanagement servicesmore efficiently to thepeople in those provinces

Targets 2008/2009

15 days9 days for land reform

98%

13 days

5 days

North West

Actual

17 days8 days

98%

Target achieved

Target achieved

Target not achieved dueto insufficient fundingand un-approvedDepartmentalorganisational structure.The Eastern CapeSurveyor-General’s officewas established toexercise only onefunction, namely theprovision of information.


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Provision of efficientland use and landadministrationservices (continued)

Development ofprogrammes forempowerment ofwomen, youth,people with disabilityand those living withHIV/AIDS as well asolder persons withinthe context of theDepartment’smandate

Outputs

Amended surveyinglegislation implementedto support government’saims and objectives oneconomic developmentand poverty reduction

Trained Professional LandSurveyors, ProfessionalSurveyors, SurveyTechnicians and SurveyOfficers from targetgroups


Implement the SurveyingProfession Actpromulgated by 31October 2008 totransform the surveyingprofession.

Amend regulationsframed under LandSurvey Act 8 of 1997 soas to improve theefficiency of cadastralsurveys.

Number of candidatestrained.

Targets 2008/2009

June 2008 submission toParliament

November 2008

50 Pupil Survey Officers40 Interns (PLST & ST)

Actual

Legislation wasreprioritised and theSurveying Profession Billwas not included.

The new SurveyRegulations Board wasonly constituted at thebeginning of 2009. Theirfirst meeting is scheduledfor August 2009.

• 67 Pupil SurveyOfficers received in-house training onSurveyor-Generaloperations, as well aslectures on cadastralsurveys

• 11 Professional LandSurveyors wereemployed and receivedin-house training, aswell as training offeredby private landsurveyors

• 33 Survey Interns(Survey Technicians)received training inthree Surveyor-GeneralOffices.


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4Programme Restitution


PPurpose To take responsibility for the settlement ofland restitution claims in accordance with theprovisions of the Restitution of Land RightsAct, 1994 (Act No. 22 of 1994), and providesettlement support to beneficiaries.

MeasurableobjectiveResolve restitution claims within the targetperiod through negotiated settlements thatrestore land rights or award alternative formsof equitable redress to claimants.

Intended impact� Ensure land ownership by previous victims

of racial land dispossessions.� Poverty alleviation through sustainable

development on restored land as well asimproved livelihoods.

� Foster the rights of vulnerable groups interms of ownership and participation ineconomic agricultural activities.

OverviewDuring the year under review the Commissionon Restitution of Land Rights settled a total of653 claims inclusive of the 108 claims whichwere dismissed. This resulted in approximately394 000 hectares of land being approved forrestoration, affecting approximately 30 000

households. Cumulatively, the approvedhectares of land for restitution purposes since1995 is 2.47 million hectares.

A total amount of R3.5 billion wascommitted for the acquisition of land forrestitution beneficiaries. Compared to thehectares approved for transfer to beneficiaries,the amount approved for land purchases isindicative of the high cost of acquiring landfor land reform purposes.

Several agreements were concluded withstakeholders including the First National Bank,AgriSETA, the Development Bank of SouthernAfrica (DBSA), the Amahlathi ForestryCompany, as well as the Anglo Group. Greatprogress has been made with regard to theimplementation of the memoranda ofagreements signed with Mondi as well as theDepartment of Water Affairs and Forestry onthe settlement of forestry claims, and much ofthe deliverables in that regard will be reportedon in the forthcoming financial year.

The lack of skills on the part of beneficiariesremains a challenge with the implementationof land reform programmes. The agreemententered into with AgriSETA will ensure thatland reform beneficiaries receive the necessarytraining to enable them to make optimal useof the land restored to them.

The successful implementation of asustainable land reform programme relies oneffective collaborative initiatives involving roleplayers from the public and private sectors.Notwithstanding positive engagements with

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many strategic partners, the association with certainstrategic partners has not yielded the desired effect forrestitution beneficiaries. All such partnerships are currentlybeing reviewed in order to ensure that the Department andthe relevant land reform beneficiaries get value for moneyout of such relationships.

A review on all the projects where land has beentransferred to restitution beneficiaries has been concluded.Approximately 200 struggling projects have been identifiedfor recapitalization with funding from the Department ofAgriculture as part of the implementation of the Land andAgrarian Reform Programme (LARP).

The Commission is left with approximately 4 296 complexrural claims that are still outstanding. Four of the regionaloffices should however be finalising their claims by the endof the 2009/2010 financial year. These include the Gautengoffice, the Free State office, the Northern Cape office and theWestern Cape office.

Budget constraints also remain a challenge for theCommission, especially in view of the ever increasing landprices. The Commission will be seeking an audience withTreasury to explore ways in which the situation can beimproved.


To fast trackredistribution of 30%of white-ownedagricultural land by2014 for sustainableagriculturaldevelopment

Settlement of alloutstanding landclaims by 31 March2012

Outputs

Claimed/alternative landrestored to restitutionclaimants contributing tothe LARP Programme

All lodged restitutionclaims settled

Restitution memorials ineach Provincecommemorating claimssettled in that province

Settlement supportprocesses of land claimswith development aspectfacilitated to ensuresustainable development


2 033 200 hectares ofland restored torestitution claimants forsustainable development

All the remaining 5 083(1)

land claims validated,gazetted, verified andsettled by 2011 in termsof the Restitution of LandRights Act, 22 of 1994

Restitution memorialserected in each Provincein terms of relevantlegislation in line withtourism corridors andcommemorating claimssettled in that province.

Implementation of the10 Year Strategy withrelevant stakeholders

Targets 2008/2009

1 034 000

389(2)

Strategy in place

Analysis andimplementation plan byJune 2008

Actual

394 755

653(545 settled & 108dismissed)

The project is ongoingand should be completedwithin the next threeyears. Challenges wereexperienced with regardto the appointment ofservice providers andbudgetary constraints.

Support is currently beingrendered in respect ofapproximately 560projects where land hasbeen restored with adevelopment aspect.Projects are beingimplemented andsettlement support isfacilitated with all therelevant stakeholders inline with the 10-yearstrategy. In order toensure sustainability ofprojects where land hasbeen handed over tobeneficiaries, close liaisonwith the ProvincialDepartments ofAgriculture is beingfostered.An improved focusedapproach has beenadopted to assist projectsthat are struggling.


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Settlement of alloutstanding landclaims by 31 March2012 (continued)

Outputs

Rights of vulnerablegroups protected in theresolution of land claims

Effective FinancialManagement and riskcontrol


Strategy in place toensure the rights andinterests of vulnerablegroups i.e. femaleheaded households,youth, people withdisability, are adequatelyaddressed in thefinalisation of the claims

Financial controlsimplemented to minimiseall identified risks

Targets 2008/2009

July 2008

Unqualified Audit

Actual

The strategy has beencompleted.Implementation of thestrategy is ongoing.

Qualified audit on theinterest owed byconveyancers. (3)


Explanatory notes:

(1) Internal auditing performed on the statistics on outstanding claims revealed that the correct figure for outstanding claims was5 083 instead of 4 891 as previously reported in the Departmental Strategic Plan. This error was the result of the incorrectcalculation in respect of the Pietersburg claims.

(2) The original target for the 2008/2009 financial year of 2 585 was revised in accordance with a management decision. Thefigure was initially set at 2 585 due to the envisaged closure of the Commission in December 2008. The revised target of 389claims is in line with the Commission’s extended tenure.

(3) The Auditor General reported an audit qualification consequent to poor systems for monitoring the collection of interest onfunds payable as a deposit on land acquisition and ensuring that supporting documentation is provided.

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1 APRIL 2008 - 31 MARCH 2009 33

5Programme Land &Tenure Reform

PPurposeProvide sustainable land reform programmesin South Africa.

MeasurableobjectiveEnsure that sustainable benefits of economicgrowth accrue to previously disadvantagedcommunities, groups and individuals.

Intended impactContribute to social and economicdevelopment through more equitable accessto land by all citizens.

IntroductionAs reflected in the 2008-2011 Strategic Planof the Department, the Branch: Land andTenure Reform initially had a nationalredistribution target of 1 500 000 hectares forthe 2008/2009 financial year, which was to beachieved through two sub-programmes,namely redistribution and tenure reform. Thistarget however was reduced to a target of608,060.0000 hectares in order to align itwith the actual budget allocation when itbecame apparent that the baseline allocationwas not to be increased. Despite theadjustment of the target, which was set aspart of the APEX of priorities, the Departmentcould not meet the revised target due to

among other reasons, the general escalationof land prices and the fact that certain land isvery expensive due to the nature thereof. TheBranch nevertheless spent almost 100% of thebudget allocated to it during the period underreview.

The Branch delivered a total of443,600.4886 hectares which is164,459.5114 hectares short of the revisedtarget. In the redistribution of the443,600.4886 hectares, a total of 501 projectswere finalised and 14 457 beneficiaries werereached through these projects.

All land acquired through the ProactiveLand Acquisition Strategy (PLAS) during the2008/2009 financial year, have been registeredin the name of the State. In certain instancesthe State provides potential beneficiaries withaccess to land by means of lease orcaretakership agreements until the land istransferred permanently to suitablebeneficiaries. Plans for the disposal of land topotential beneficiaries are being finalisedwhereafter such land will be transferred to thebeneficiaries in terms of the provisions of theLand Redistribution for AgriculturalDevelopment Grant (LRAD), the Settlementand Production Land Acquisition Grant(SPLAG) and/or the Commonage Grant(COMG). These grant systems are theprincipal funding models that are used underthe Land and Tenure Reform Programme.

Performance and delivery in terms of thesefunding models can be tabulated as follows:


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As part of the amendment of the Department’sorganisational structure, the Branch: Land and TenureReform was divided into two Branches known as Region 1and Region 2, each consisting of the following provinces:

� Region 1: Eastern Cape, Gauteng, Mpumalanga,Northern Cape and Western Cape;

� Region 2: Free State, KwaZulu-Natal, Limpopo andNorth West, as well as the national office-based landreform components.

Region 1

Eastern Cape Provincial LandReform Office (ECPLRO)The initial target for the redistribution of land by the ECPLROwas 184,107 hectares. This target was adjusted to 75,000hectares and the actual delivery of the ECPLRO amounted to47,522.9434 hectares comprising of 59 projects and 772beneficiaries. However, the ECPLRO were unfortunately27,477.0566 hectares short of meeting their revised target.

Of the 47,522.9434 hectares delivered, a total of32,603.5142 hectares were land acquired through PLAS,while 14,919.4292 hectares comprised of land transferred toeither individual beneficiaries or municipalities in accordancewith the provisions of the LRAD, SPLAG, SLAG or COMGfunding models.

Gauteng Provincial Land ReformOffice (GPLRO)The GPLRO had an initial redistribution target of 48,565hectares of land, which had to be adjusted to 16,000hectares. The GPLRO however only delivered a total of2,554.5806 hectares and were therefore 13,445.4194hectares short of meeting the revised target.

The 2,554.5806 hectares delivered comprised of 16projects and 44 beneficiaries. All 2,554.5806 hectares areland acquired through PLAS.

Mpumalanga Provincial LandReform Office (MPLRO)The initial redistribution target of 189,237 hectares for theMPLRO was adjusted to 75,000 hectares. The MPLRO

finalised 65 projects, reaching 1 177 beneficiaries. Thisresulted in 52,272.6668 hectares of land being transferred.The MPLRO was 22,727.3332 hectares short of meetingtheir target.

Of the 52,272.6668 hectares delivered a total of37,025.8538 hectares were acquired through PLAS, while15,246.8130 hectares comprised of land transferred toeither individual beneficiaries or municipalities in accordancewith the provisions of the LRAD, SPLAG, SLAG or COMGfunding models.

Northern Cape Provincial LandReform Office (NCPLRO)A redistribution target of 329,107 hectares was initially setfor the NCPLRO, but had to be reduced to 140,000 hectares.The NCPLRO almost reached the target and delivered a totalof 125,362.5521 hectares and was therefore 14,637.4479hectares short of meeting the revised target. The Officefinalised 25 projects, involving 364 beneficiaries.

Of the 125,362.5521 hectares acquired, 44,247.6487hectares were acquired through PLAS and 81,114.9034hectares were land transferred to either individualbeneficiaries or municipalities in accordance with theprovisions of the LRAD, SPLAG, SLAG or COMG fundingmodels.

Western Cape Provincial LandReform Office (WCPLRO)In the case of the WCPLRO the initial redistribution target of154,107 hectares was revised to 60,000 hectares for the2008/2009 financial year. This Office managed toredistribute a total of 18,637.2954 hectares, consisting of 19projects and 1 719 beneficiaries. The WCPLRO was41,362.7046 hectares short of meeting their target.

The 18,637.2954 hectares delivered were acquiredthrough the LRAD and comprised of land transferred toeither individual beneficiaries or municipalities in accordancewith the provisions of the LRAD, SPLAG, SLAG or COMGfunding models.

No of beneficiariesProvince

Eastern Cape

Free State

Gauteng

KwaZulu-Natal

Limpopo

Mpumalanga

Northern Cape

North West

Western Cape

Total

LRAD/COM/SLAG/SPLAG

14,919.4292

8,727.3543

0.0000

59,528.4999

12,208.1997

15,246.8130

81,114.9034

6,231.7997

18,637.2954

216,614.2946

PLAS

32,603.5142

55,514.9262

2,554.5806

6,010.7311

2,392.3794

37,025.8538

44,247.6487

46,636.5600

0.0000

226,986.1940

Total

47,522.9434

64242.2805

2,554.5806

65,539.2310

14,600.5791

52,272.6668

125,362.5521

52,868.3597

18,637.2954

443,600.4886

LRAD/COM/SLAG/SPLAG

26

25

0

95

70

17

17

14

19

283

PLAS

33

73

16

20

3

48

8

16

0

217

Total

59

98

16

115

73

65

25

30

19

501

Indivi-duals

772

144

44

9 449

550

1 177

364

238

1719

14 457

Female

195

53

28

2 279

293

402

48

35

578

3 911

Farmwor-kers

59

42

0

258

164

0

232

1

993

1 749

Youth

153

40

9

1 755

215

446

46

27

0

2 691

Disab-led

2

0

0

91

6

0

1

0

563

663

Hectares No of projects

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Region 2

Free State Provincial Land ReformOffice (FSPLRO):The initial FSPLRO target was to deliver 329,107 hectares ofland. This target was revised to 74,285.0000 hectares forthe 2008/2009 financial year. A total of 64,242.2805hectares were delivered consisting of 98 projects and 144beneficiaries. The FSPLRO was 10,042.7195 hectares short ofmeeting the revised target.

Of the 64,242.2805 hectares acquired a total of55,514.9262 hectares were acquired through PLAS, while8,727.3543 hectares were land transferred to eitherindividual beneficiaries or municipalities in accordance withthe provisions of the LRAD, SPLAG, SLAG or COMG fundingmodels.

KwaZulu-Natal Provincial LandReform Office (KZNPLRO)The KZNPLRO had an initial target to deliver 180,000.0000hectares which was revised to 72,975.000 hectares. TheOffice managed to deliver 65,539.2310 hectares. Thisinvolved 115 projects and 9 449 beneficiaries. The KZNPLROwas 7435.7690 hectares short of meeting the revised target.

Of the 65,539.2310 hectares acquired, 6,010.7311hectares were acquired through PLAS and 59,528.4999hectares were land transferred to either individualbeneficiaries or municipalities in accordance with theprovisions of the LRAD, SPLAG, SLAG or COMG fundingmodels.

Limpopo Provincial Land ReformOffice (LPLRO)In the case of the LPLRO the initial redistribution target of94,093.0000 hectares was reduced to 40,800.0000hectares, of which only 14,600.5791 hectares weredelivered, resulting in a shortfall of 26,199.4209 hectares. Atotal of 73 projects were finalised to the benefit of 550beneficiaries.

Of the 14,600.5791 hectares delivered, 2,392.3794hectares were land acquired through PLAS, while12,208.1997 hectares were land transferred to eitherindividual beneficiaries or municipalities in accordance withthe provisions of the LRAD, SPLAG, SLAG or COMG fundingmodels.

North West Provincial Land ReformOffice (NWPLRO)The initial redistribution target of the NWPLRO was142,107.0000 hectares. This target was reduced to54,000.0000 hectares and the Office managed to deliver52,868.3597 hectares, only 1,131.6403 hectares short ofthe revised target. A total of 30 projects were finalised,reaching 238 beneficiaries.

Of the 52,868.3597 hectares delivered, 46,636.5600hectares were acquired through PLAS and 6,231.7997hectares comprised of land transferred to either individualbeneficiaries or municipalities in accordance with theprovisions of the LRAD, SPLAG, SLAG or COMG fundingmodels.


Redistribution of30% of white-ownedagricultural land by2014 for sustainableagriculturaldevelopment

Provision of tenuresecurity that createssocio-economicopportunities forpeople living andworking on farmsand in communalareas

Outputs

Productive white-ownedagricultural land providedto black South Africansfor sustainableagricultural development.

Labour tenant claimssettled in a manner thatpromotes their socio-economic developmentand social justice.

Roll-out of Land RightsManagement facility

TRANCRAA implemented

CLaRA implemented in amanner that promotessocial and economicdevelopment


24.9 million hectares ofproductive white-ownedland provided to 60 000individual Black SouthAfricans by 2014(including PLAS andLabour Tenants)

Individual/beneficiaries

Number of labour tenantclaims settled(households)

Number of reports oncases submitted quarterly(type specified)

Number of projectssubmitted to Minister forapproval

Establishment of oneLand Rights Board ineach affected Province

Targets 2008/2009

1 500 000 (1)

(Revised target: 608 080)

12 334

4 840

Within 24 hours

10

June 2008

Actual

443,600.4886 (1)

14 457

405

Within 24 hours

0

Not achieved (2)


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Provision of land forsustainable humansettlements

Provision of efficientState landmanagement thatsupportsdevelopment

Outputs

Land acquired forsustainable humansettlements

State land proactivelyvested

National State LandAdministration Strategydeveloped


Number of propertiestransferred tomunicipalities forintegrated settlement

Number of parcelssubmitted forconfirmation of vesting interms of Item 28(1)certificates within 30days

Availability date

Targets 2008/2009

34

2 370

June 2008

Actual

4

3 137

Not achieved (3)


(1) The original target of 1 500 000 hectares was revised to 608 060 hectares in order to align it with the actual budget allocationwhen it became apparent that the baseline allocation was not to be increased. Unfortunately the revised target could not beachieved due to various reasons such as the general escalation of land prices.

(2) The court case on the Communal Land Rights Act, 2004 (Act No. 11 of 2004)(CLaRA) where four applicants brought anapplication in the Pretoria High Court to declare the provisions of CLaRA invalid and unconstitutional, has not been finalised.The matter was considered by the Court in October 2008, however judgment was reserved. The implementation of CLaRAdepends on the outcome of this case. In the meantime, the Department held extensive consultation workshops in 2008 withvarious stakeholders.

(3) The National Land Administration Strategy would have provided for vesting and disposal strategies, which would have beendeveloped with internal capacity. The Directorate: Public Land Support Services became overstretched as a result of a backlogin vesting requests that had to be attended to, the analysis of State land audit data and the provision of assistance to the LandClaims Commission with claims on State land. The Strategy is currently being developed together with the National andProvincial Departments of Public Works. The disposal component of the strategy also has to be reconsidered.

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6Programme SpatialPlanning &

Information

PPurposeProvide for national Land Use Management,Spatial Planning and Spatial InformationSystems

Measurableobjective Provision of legislative, institutional andtechnical skills support to regulate land usemanagement, spatial planning and spatialinformation management within the publicand private sectors

Intended impactMore effective land use management systems,spatially equitable and efficient settlementpatterns

AimThe Chief Directorate: Spatial Planning andInformation is responsible for establishing aneffective and efficient system of spatialplanning, land use management and a spatialinformation framework to support nationaldevelopment and land reform. The ChiefDirectorate is made up of the following sub-programmes:

� Management and Support Services: co-ordinates overarching projects of national

strategic significance and providesmanagement and administrative supportto all units of the Programme.

� Spatial Planning and Information: createsbetter land use systems that aresupported by spatial planning and spatialinformation.

� South African Council for Planners(SACPLAN): established in terms of thePlanning Profession Act, 2002 (Act No. 36of 2002), whose support is within themandate of the Department.

Sub-programme:Management &Support ServicesThe aim of this sub-programme is to provide amanagement service, administrative andfinancial support, as well as to ensure theestablishment of provincial offices and ensurecoordination and alignment of functionsbetween them and Head Office.

Since the functions of the Chief Directoratecannot be effectively executed without somedegree of decentralisation to bring servicescloser to the intended beneficiaries, anadditional five provincial offices were created.There are now spatial planning and/or spatialinformation services offices in all the provincesacross the country to deliver on the mandateof the Chief Directorate.


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Sub-programme: SpatialPlanning & InformationSpatial Planning and Information is responsible forestablishing, implementing and monitoring spatial,environmental and land use planning and managementsystems for the country. It is also responsible for thecoordination and support of a national system for themanagement and exchange of spatially related informationwith strategic and operational perspectives.

Public hearings were held for the Land Use ManagementBill (LUMB), with the amended version being presented andsupported by the Portfolio Committee on Agriculture andLand Affairs. Although the Bill was scheduled to be debatedin the National Assembly, this has not yet materialised andthe Bill is still on hold in Parliament.

As required by the Planning Profession Act, 2002 (Act No.36 of 2002), technical and financial support to the SouthAfrican Council for Planners (SACPLAN) has been provided.

Furthermore, the functions of SACPLAN were reviewed toensure compliance with the Act and a draft report in thisregard is available.

Workshops were held in all provinces to obtain inputsfrom the public in respect of the proposed regulations to beissued in terms of the Spatial Data Infrastructure Act, 2003(Act No. 54 of 2003). The inputs were considered andincorporated in a draft document which is currently beingreviewed by a legal team, to ensure it is aligned to andmeets the required standards. The appointment of newmembers to the Committee for Spatial Information is at anadvanced stage. The appointment of nominated membershas been approved and the names of members are to begazetted.

The Consolidated Environmental ImplementationManagement Plan (CEIMP) report has been finalised. It waspresented to and adopted by the Committee forEnvironmental Coordination (CEC) set up in terms of theNational Environmental Management Act, 1998 (Act No.107 of 1998).


Provision ofefficient land useand landadministrationservices

Outputs

Develop, implementand monitorlegislation,regulations andguidelines


Land Use ManagementAct (LUMA) regulationsdeveloped

Spatial DataInfrastructure Act (SDI)regulations developed

National GeographicInformation Systems(GIS) Strategy developed

Spatial MetaDataDiscovery (SMD) portalestablished

Targets 2008/2009

December 2008

December 2008

November 2008

November 2008

Actual

Not achieved.Public hearings on the Land UseManagement Bill (LUMB) were held inJuly 2008 and these informedamendments to LUMB which werepresented to the Portfolio Committeeon Agriculture and Land Affairs. ThePortfolio Committee supported the Billand although it was scheduled fordebate in the National Assembly, thisdid not materialise. The Bill is currentlyon hold in Parliament. The regulationscan only be finalised once Parliamenthas adopted the Bill.

Not achieved.The draft regulations in terms of theSpatial Data Infrastructure Act, 2003(Act No. 54 of 2003), are currentlybeing edited for legal compliancebefore formal publication for publiccomments.

Not achieved.Due to capacity constraints, it wasdecided to outsource the drafting ofthe strategy. Two briefing sessionswere held but no suitable serviceprovider could be found during theevaluation of proposals. The strategy isnow being developed in-house.

Achieved.The project has reached the final stageof Beta testing and is to be deployed toprovinces.


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Provision ofefficient land useand landadministrationservices (continued)

Outputs

Develop, implementand monitorlegislation,regulations andguidelines(continued)

Provide technicalskills and services atprovincial andmunicipal level


National land usemonitoring frameworkdeveloped

Establish offices in thefive remaining provinces

Formulation of SpatialDevelopmentFrameworks (SDFs) andLand Use ManagementSystems (LUMS)supported

GIS capacity building inmunicipalities supported

Targets 2008/2009

November 2008

February 2009

Comply with IDPcycles

11 months frominception

Actual

Target partially achieved.The Settlement Growth Patterns (SGP)project is being reviewed. There is aneed to capture the study results in GISformat. The SGP will form part of theenvisaged framework, with three pilotcities chosen to update the study.Information is still being obtained andthe relevant mapping is beingcompiled. The terms of reference forthe Land Use Monitoring Frameworkwere developed.

Additional offices were establishedin the Free State, Western Cape,North West, Gauteng andMpumalanga.

Target achieved.• Evaluated two LUMS for Thembisile

and Dr J S Moroka municipalities.• Evaluated SDFs for Dipaliseng,

Mkhondo, Vhembe district,Maruleng, Fetakgomo, LepelleNkumpi, Aganang, Sekhukhune,Elias Motsoaledi, MakhuduThamaga, Giyani, Molemole, GreaterLetaba and Lekwa municipalities.

• Evaluation of SDF for Albert Luthuliand Pixley ka Seme municipalitiescarried out.

• Currently providing technical supportin respect of the development of theGert Sibande district municipality,Lephalale, Mogalakwena andBlouberg municipalities.

• Participated in the Nkangala districtmunicipality, Gert Sibande districtmunicipality and Ehlanzeni districtmunicipality’s IDP assessmentprocess.

• Terms of reference have beendeveloped to assist the Ingquza Hilllocal municipality with its SDF.

Target achieved. • GIS implementation in Sekhukhune

district municipality: user needs analysis developed.

• Assisting Bushbuckridge andDipaleseng in the development ofGIS as part of the SDF support.

• Spatial data is available via thespatial data warehouse; updateArcGIS Server software to the latestservice pack.

• Spatial data is available as a webservice over the intranet.

• A training manual is being developedin support of the GIS in Schoolsproject.

• Participation and contribution to GISforums.


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7Programme DeedsRegistration


PPurposeTo provide efficient land use and landadministration services.

Measurableobjective To provide a high quality deeds registrationsystem whereby secure titles are registeredand speedy and accurate information isprovided.

Service deliveryobjectives &indicators The Microfilm Camera Replacement Projectwas completed and day-to-day scanning isnow being done in all Deeds Registries. Thishad a considerable reduction in the delivery ofregistered deeds from three months to 14days. The server storage for the DeedsRegistries at Kimberley, Vryburg and Umtatawas upgraded to accommodate the day-to-day scanning.

The progressive introduction of e-Cadastrewhich is aimed at reducing deeds registrationturnaround times will be implemented overthe MTEF period. A phased approach will befollowed which includes the implementationof an enterprise architecture which willultimately result in the consolidation of

cadastral and deeds data stores and the back-scanning of all the paper records, for purposesof the digitisation of the archives. The projecthas been put on hold due to the unavailabilityof funds. Server storage will also be upgradedto accommodate the increase in records as aresult of the back-scanning. This project willalso facilitate the rationalisation of the areas ofjurisdiction for the Deeds Registries of Pretoria,Limpopo, Cape Town, Umtata, Vryburg andKimberley.

Core functionsThe core functions of the Chief Directorate:Deeds Registration and the 10 Deeds Registriesare as follows:

� To register real rights in land� To maintain a public land register� To provide registration information� To maintain an archive of registration

recordsThe details regarding these functions are as

follows:

Registration of land & realrights in land The Deeds Registries Act, 1937 (Act No. 47 of1937), and the Sectional Titles Act, 1986 (ActNo. 95 of 1986) require that deeds anddocuments be prepared and lodged in aDeeds Registry by a Conveyancer or Notarypublic. These deeds and documents aresubjected to three levels of examination by

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1 APRIL 2008 - 31 MARCH 2009 41

legally qualified personnel who scrutinise the contents foraccuracy and compliance with common law, case law andstatutory law. In addition, examiners ensure that appropriateeffect is given to Orders of Court, caveats and interdictsrecorded in the Deeds Registry, where applicable. Security oftitle is not guaranteed by law in South Africa. Instead, the

system of examination described above, together with thechecks and balances which form an integral part of theregistration system, provide the holder of a title deedregistered in a South African Deeds Registry with anindisputable right which is recognised and respected by theCourts, financial institutions and the public at large.

� Section 7 of the Deeds Registries Act obliges a Registrarof Deeds to permit any person, upon payment of theprescribed fees, to inspect the public registers in a DeedsRegistry and to make copies of records of such Registry.

� The Deeds Registries' electronic information system,DeedsWeb, provides electronic access to registrationinformation from anywhere in the world via the internet.

The demand for registration information continues toincrease. During the 2008/2009 financial year, a total of17 384 105 electronic information requests were processedby the Chief Directorate’s information systems. This amountsto a 6,71% increase in requests from the previous financialyear.

DeedsWeb information searchesApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2007/2008 1 166 390 1 508 408 1 295 332 1 421 897 1 436 034 1 227 071 1 499 978 1 421 741 1 179 351 1 290 082 1 496 348 1 348 735

2008/2009 1 417 205 1 388 697 1 521 577 1 482 184 1 390 761 1 428 267 1 551 975 1 344 895 862 585 1 182 907 1 382 676 2 430 376

Total number of registered land parcels on the Deeds RegistrationSystem database

# Database not complete – still under construction.

$ The increase in land parcels varies due to subdivisions, consolidations and new buildings registered in different Deeds Registries.

Deeds Registry

Pretoria

Cape Town

Johannesburg

Pietermaritzburg

Bloemfontein

Kimberley

King William's Town

Vryburg

Umtata #

Mpumalanga

As at 31 March 2009$

As at 31 March 2008

Township Erven

1 609 429

1 781 335

982 270

919 833

556 931

86 144

189 497

86 551

66 893

448 910

6 727 7936 594 505

Sectional Title Units

262 916

211 210

149 880

153 354

29 195

831

6 934

696

22

12 895

827 933777 094

AgriculturalHoldings

42 562

0

0

0

7 038

1 153

0

4 100

0

3 757

58 61058 877

Farms

168 258

139 683

0

92 543

60 426

5 110

11 687

10 593

2 137

44 926

535 363 531 160

Total

2 083 165

2 132 228

1 132 150

1 165 730

653 590

93 238

208 118

101 940

69 052

510 488

8 149 699 7 961 636

Provision of registration information

Document Copy System (DCS) & Image Copy System (ICS) requestsApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

DCS 2007/2008 16 339 21 846 11 617 20 382 21 517 12 962 17 487 12 507 7 205 6 742 8 601 7 038

ICS 2007/2008 7 430 11 128 2 271 4 662 6 006 6 154

TOTAL 2007/2008 16 339 21 846 11 617 20 382 21 517 12 962 24 917 23 635 9 476 11 404 14 607 13 192

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

DCS 2008/2009 7 401 6 741 7 303 9 242 9 050 8 608 9 285 7 402 4 844 5 098 8 148 8 697

ICS 2008/2009 6 045 6 300 7 856 9 581 9 555 10 336 11 644 10 146 6 715 9 374 11 090 11 542

TOTAL 2008/2009 13 446 13 041 15 159 18 823 18 605 18 944 20 929 17 548 11 559 14 472 19 238 20 239

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Provision of efficientland administrationservices

Outputs

Secure title to realrights In land

Expedited registrationfor land reform andhousing beneficiaries

A transformed cadastre

Deeds services providedto the people at pointof need


No of days afterlodgement whenregisterable deeds anddocuments are availablefor registration

No of days afterregistration whenregistered deeds/documents are delivered

Number of deeds anddocuments challenged incourt

No of days afterlodgement whenregisterable deeds anddocuments are availablefor registration

% Implementation ofCadastral Reform Plan

Consolidate data anddigitise in preparation fore-Cadastre

% Implementation ofPLOF policy

Operational deedsregistry per province

Targets 2008/2009

Not more than 10days

Not more than 15days

Nil

Not more than 5days

50%

25%

50%

Limpopo

Actual

Pretoria - 76% available in 10daysCape Town - 87% available in 10daysJohannesburg - 93% available in10 daysPietermaritzburg - 97% availablein 10 daysBloemfontein - 98% available in10 daysKing William’s Town - 99%available in 10 daysKimberley - 97% available in 10daysVryburg - 96% available in 10daysUmthatha - 94% available in 10daysMpumalanga - 90% available in10 days

Pretoria - 79% available in 15daysCape Town - 39% available in 15daysJohannesburg - 94% available in15 daysPietermaritzburg - 78% availablein 15 daysBloemfontein - 97% available in15 daysKing William’s Town - 97%available in 15 daysKimberley - 99% available in 15daysVryburg - 100% available in 15daysUmthatha - 100% available in 15daysMpumalanga - 84% available in15 days

No deeds have been challenged incourt.

4 days

A tender for the design of anenterprise architecture, theconsolidation of cadastral anddeeds data stores, and the back-scan of all the paper records inorder to digitise all records wasadvertised. The project has beenput on hold due to theunavailability of funds.

Awaiting the development of thePLOF policy and legislation.

Accommodation secured in thecurrent Surveyor-General Offices.Awaiting approval of structure.


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1 APRIL 2008 - 31 MARCH 2009 43


Provision of efficientland administrationservices (continued)

Participation in landand agrarian reformactivities andprogrammes aimedat consolidating theAfrican Agenda

Development ofprogrammes forempowerment ofwomen, children,people with disabilityand those living withHIV/Aids as well asolder persons withinthe context of theDepartment’smandate

Development ofproactive strategiesfor risk andcompliancemanagement

Outputs

Deeds services providedto the people at point ofneed (continued)

Providing support toSADC countries with theirland registration systems

Empowered members ofvulnerable groups

Viability andmanagement of theDeeds Trading Account


Deeds Registration areasof jurisdiction wellaligned with provincialboundaries

Number of countriessupported

% Implementation ofempowerment strategies

% of billing amount paid

Audit findings

Targets 2008/2009

North West – 100%Eastern Cape – 25%Northern Cape – 25%

2

100%

90% of the billingamount paid

No significant matter onthe audit report

Actual

A tender for the designof an enterprisearchitecture, theconsolidation of cadastraland deeds data stores,and the back-scan of allthe paper records inorder to digitise allrecords was advertised.The project has been puton hold due to theunavailability of funds.

Training course presentedto delegates fromBotswana Deeds Registry.Course on SARegistration Systempresented to delegatesfrom Malawi.

19 interns empowered41 appointeesempowered in terms ofProject Vhatsutsumi.

93% of the current yearbilling amount paid.

The Directorate: InternalAudit commenced withthe audit. However, theoutcome of the Auditor-General report will alsohave to be taken intoaccount.


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P A R T 3 R E P O R TO F T H EA U D I TC O M M I T T E E

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1 APRIL 2008 - 31 MARCH 2009 45

W

part3R E P O R TO F T H E A U D I TC O M M I T T E E

Reportof the AuditCommittee

FOR THE YEAR ENDED 31 MARCH 2009

We are pleased to present our report for thefinancial year ended 31 March 2009.

Audit Committeemembers & attendanceThe previous and current Audit Committees forthe year under review (“the Committees”) wasconstituted in terms of section 38 of the PFMAand Treasury Regulation 3.1.2, and consisted ofthree and four external members respectively.In accordance with its approved charter, theAudit Committee has to meet at least fourtimes per annum. A total of five meetingswere held during the year under review.

The following persons were members of theprevious Committee:Name of member Number of

meetingsattended

Ms R Van Wyk (Chairperson) ...........3Ms D Ndaba....................................3Mr G Witthöft .................................3

The following persons are members of thecurrent Committee:Name of member Number of

meetingsattended

Mr K Buthelezi (Chairperson) ...........2Ms B Kunene...................................2Mr L Mangquku ..............................2Ms R Mlonzi....................................0

The term of office of all the members of theprevious Committee expired on 31 August

2008, and the current Audit Committee hasbeen appointed as from 1 September 2008.

Audit CommitteeresponsibilityThe Committee has adopted appropriateformal terms of reference as contained in itsAudit Committee Charter in line with therequirements of section 38(1)(a) of the PublicFinance Management Act, 1999 (Act No.1 of1999) and Treasury Regulations 3.1. TheCommittee has regulated its affairs incompliance with this charter and hasdischarged its responsibilities as containedtherein.

The effectiveness ofinternal controlIn line with the PFMA requirements, theDirectorate: Internal Audit provides theCommittee and management with assurancethat the internal controls are appropriate andeffective. This is achieved by means of the riskmanagement process, comprehensive internalaudits, as well as the identification of correctiveactions and suggested enhancements to thecontrols and processes.

The system of internal control was notentirely effective for the year under review.Deficiencies in the system of internal controland/or deviations therefrom were reported bythe internal auditors and the Auditor-General

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South Africa. In certain instances, the matters reportedpreviously have not been fully and satisfactorily addressed.

The Audit Committee has noted with concern the issuesraised in the report of the Auditor-General. The AuditCommittee has tasked management to prepare acomprehensive plan to indicate how the Department willaddress the issues and report progress regularly to theCommittee. Management has embarked on the process ofaddressing these issues with immediate effect, these includeinter alia:

� Verification of performance information against theDepartment’s business plan and Branch business plans.

� Physical verification of assets against the asset register.The delays in receiving management comments on

internal and external audit reports have been noted by theAudit Committee and management has made a commitmentto address these shortcomings.

The Committee has noted the improvement of the overallreporting of the Department which has enabled the AuditCommittee to fulfill its oversight role on audit, risk andoverall governance processes.

Evaluation of financialstatementsThe Committee has

� Reviewed and discussed the Department of Land Affairsand Deeds Registration Trading Account’s annualfinancial statements to be included in the annual report,with the Auditor-General South Africa, the AccountingOfficer and management;

� Reviewed the Auditor-General’s management letters andmanagement’s response thereto;

� Reviewed and discussed the reports and audit opinionsof the Auditor-General with the Auditor-General andmanagement;

� Reviewed possible changes in accounting policies andpractices; and

� Reviewed significant adjustments resulting from theaudit.

We concur with and accept the Auditor-General of SouthAfrica’s reports on the Department of Land Affairs andDeeds Registration Trading Account’s annual financialstatements, and are of the opinion that the audited annualfinancial statements should be accepted read together withthe reports of the Auditor-General South Africa.

Internal AuditWe are satisfied that the internal audit function is operatingeffectively and that it has addressed the risks pertinent to theDepartment in its audits. Internal Audit has made significantprogress with audits conducted in terms of its three-yearrolling plan, as well as with the forensic and specialinvestigations that were performed in addition to the plan.Capacity building is still posing a challenge to the internalaudit function and therefore co-sourcing has been used asan interim measure.

Auditor-General South AfricaWe have met with the Auditor-General South Africa toensure that there are no unresolved issues.

Mr K ButheleziChairperson of the Audit Committee

Date: 31 July 2009

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4P A R T 4 A N N U A L F I N A N C I A L

S T A T E M E N T S

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part4 A N N U A LF I N A N C I A L

S T A T E M E N T S

Report of theAccounting

Officer

1. General review ofthe state of financialaffairs

1.1 Important policydecisions andstrategic issues facingthe Department

The Proactive Land AcquisitionStrategy [PLAS]The Department introduced the Proactive LandAcquisition Strategy (PLAS) during the2006/2007 financial year. The PLAS providesfor the acquisition of strategic land in terms oflocation and quality and is held by the Statewhilst the prospective beneficiaries are eitherbeing screened or still being identified. As theland temporarily becomes a State asset, theDepartment becomes obliged to manage it ina manner consistent with the provisions of thePublic Finance Management Act, 1999 (ActNo. 1 of 1999).

A number of accounting challenges aroseduring the 2006/2007 and 2007/2008financial years, which resulted in theDepartment receiving a qualified audit onPLAS assets during the 2007/2008 financialyear. This resulted, in the main, from the

absence of proper financial and accountingsystems and also from the lack of clarity in thelegislation regarding the powers of theMinister. The Department consequentlyinitiated legislative amendments whichresulted in the amendment of the Provision ofLand and Assistance Act, 1993 (Act No. 126of 1993), through the promulgation of theProvision of Land and Assistance AmendmentAct, 2008 (Act No. 58 of 2008) which cameinto operation on 9 January 2009.

The significance of the amendments is thatthey clearly empower the Minister to acquireproperty, maintain and improve such property.This makes it possible for the Minister totransfer economically viable enterprises to landreform beneficiaries in order to afford them areasonable chance to succeed. Theamendments also provide for theestablishment of a Trading Entity which shallmaintain separate and itemised financialaccounts and accounting records in respect ofeach agricultural enterprise or separatelyadministered portion of immovable propertywhich it acquires, manages, disposes of, orleases.

The Trading Entity is in the process of beingestablished and will consist of the relevantfinancial management systems related toaccounting for the assets. This will assist theDirector-General in dealing with theaccounting weaknesses that led to thequalification.


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1 APRIL 2008 - 31 MARCH 2009 49

Finalisation of the restitution claimsAlthough the Commission on Restitution of Land Rights (theCommission) has managed to settle almost all urban claims,the challenge of finalising the remaining predominantly ruralclaims remains. The remaining claims are costly and complexin nature, and to this end, the Commission has realised thatit will not be in a position to wind down operations duringthe current Medium Term Expenditure Framework. Proposalshave already been submitted for an increased baseline inorder to meet the remaining financial obligations.

Non Compliance with applicablelegislation: Public Finance ManagementAct [PFMA] and Treasury Regulations[TR]: Section 76(4)(b) of the PFMA andChapter 8.2.3 of TR

AccrualsThe Deeds Registration Trading Account reported aforeseeable deficit as a result of a drastic drop in revenue.The Department took appropriate steps to address the deficitby transferring an amount of R54,8 million to augment thedeficit. This has resulted in non-payment of the accrual asdisclosed in note number 22 of the Annual FinancialStatements amounting to R19,9 million. The transfer offunds was approved by National Treasury.

Fruitless and wasteful expenditureFruitless expenditure of R4.8 million which was incurred inthe 2007/2008 financial year was discovered after thereporting date through internal investigations. This amounthas been disclosed in the financial statements as fruitless andwasteful expenditure. The matter is in the process offinalisation and will thereafter be referred to the humanresource management and legal services components for theimplementation of disciplinary procedures against therelevant officials.

Irregular expenditureAs disclosed in note number 26 of the Annual FinancialStatements, irregular expenditure amounting to R74.96million was incurred as a result of Parliament notretrospectively approving the amendments to the Provisionof Land and Assistance Act, 1993 (Act No. 126 of 1993).The former section 10(1)(a) of the Provision of Land andAssistance Act, 1993, empowered the Minister to acquireland only. The Department had acquired assets other thanland through the Pro-Active Land Acquisition Strategy. Asthese purchases did not constitute subsidies or advances tobeneficiaries, it fell outside the mandate provided by the saidAct.

1.2 Significant events that havetaken place during the year

1.2.1 Vacant PostsThe Department has not had a permanent Chief FinancialOfficer (CFO) since 1 October 2007. There is currently anacting CFO while the posts of Chief Director: FinancialManagement and Director: Financial Administration are alsovacant. The process of filling these posts is under way.

1.2.2 VPN ImplementationThe Department has successfully migrated its Wide AreaNetwork (WAN) services from the SITA shared GCCN networkto a much more secured Telkom Virtual Private Network(VPN) in January 2009.

The main objective of this WAN services migration was toenable the Department to control and manage its own WANservices to enable pro-active WAN monitoring as well asbandwidth management through quality of services whichthe Department could not previously implement on the SITAnetwork as it is shared with other government departments.

1.3 Major projects undertaken orcompleted during the year

Amended Structure of the DepartmentAs reported in the previous financial year, the Departmenthas successfully finalised the development of an amendedorganisational structure. The structure was approved by theprevious Minister for Agriculture and Land Affairs and wassupported by the Department of Public Service andAdministration. It is foreseen that the amended structure,once implemented, will contribute to the acceleration ofland reform.

1.4 Budget AllocationThe Department’s approved budget for the 2008/2009financial year, including adjustment estimates, amounted toR6,659 billion (compared to R5,928 billion in 2007/2008),representing an increase of 12% from the previous year’sadjusted budget. Approximately 89% of the total budget isallocated to the Land & Tenure Reform and Restitutionbranches as capital budget for land acquisition and relatedmatters.

1.5 Spending TrendsThe Department has managed to spend 99.9% of theadjusted budget (2007/2008: 99.5%).

The following table indicates a synopsis of the overallDepartmental performance:

2008/09 2007/08R’000 R’000

Final appropriation 6,66 billion 5,93 billion

Expenditure 6,66 billion 5,90 billion

Spending as a percentage ofappropriation 99,9% 99,5%

Unspent funds 4,7 million 30,8 million

Unspent funds as a percentage ofappropriation 0,1% 0,5%

The commendable spending performance of R6,66 billionis largely attributable to the initiatives put in place to fast-track the settlement of restitution claims, as well as theacquisition of land at large scale through PLAS forredistribution purposes.

Throughout the year the financial performance of theDepartment was closely monitored by the StrategicManagement Committee of the Department. Early warningsystems were also put in place to monitor spending.

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The shifting of funds is mainly attributable to theaugmentation of the budget in Auxiliary and AssociatedServices for the Deeds Registration Trading Account and thereclassification of expenditure for PLAS under Programme 5:Land Reform. Funds were also shifted to Programme 4:Restitution to settle outstanding claims, to address over-expenditure under Programme 1: Property Management andProgramme 3 to address a shortfall under compensation.The virement was approved by the delegated authority inaccordance with Treasury Regulations and Public FinanceManagement Act, 1999.

Services rendered by the DepartmentIn line with its Service Delivery Commitment Charter andmandate, the Department provides the following services:

� Provision of access to land� Provision of rights in land� Settlement of land claims� Provision of settlement support� Production and supply of maps� Maintenance of the national control survey network� Registration of deeds� Supply of deeds registration information� Provision of spatial planning services� Approval of diagrams, general plans and sectional plans

for registration in a deeds registry

� Tariff policy� Tariffs for deeds registration, sale of maps and related

services are reviewed annually with the aim of recoveringsupplier costs.

Free servicesThe Department provides Map Trix Kits, Map Work TeachingAids and Map Packs to the Department of Education fordistribution to disadvantaged schools that teach Geography.

Inventories� The consumable inventory of the Department consists

mainly of stationary and printing material. The totalvalue of the closing balance as at 31 March 2009 wasR1,5 million (2007/2008 R2,5 million).

� The other main inventory consists of maps produced bythe Surveys and Mapping Programme which are sold tothe public and other government departments. Thetotal value of the balance of maps on hand as at 31March 2009 was R2,3 million (2007/2008: R2,7 million).

2. Capacity constraintsThe attrition rate for employees as at March 2009 was10.09% per annum. The reasons most often cited for leavingthe Department are:

� Better career opportunities;

Virement:The virement within the Department are as followsin R’000

Shift from

1. Administration

2. Surveys and Mapping



3. Cadastral Surveys

4. Restitution

4. Restitution

4. Restitution

5. Land Reform

5. Land Reform

6. Spatial Planning and Information

7. Auxiliary and Associated Services

Shift to


1. Administration

3. Cadastral Surveys



1. Administration

5. Land Reform


4. Restitution



1. Administration

AmountR’000

15,161

658

1,063

8,579

3,322

4,266

8,000

17,859

4,752

8,141

1,752

7,780

Programme 1

Programme 2

Programme 3

Programme 4

Programme 5

Programme 6

Programme 7

Total

Finalappropriation

R’000

426,554

98,085

137,937

3,638,611

1,593,471

22,018

11,593

5,928,269

Spending31/03/2008

R’000

424,994

97,257

137,616

3,638,465

1,571,073

21,836

6,256

5,897,497

Spent

%

99,6%

99,1%

99,7%

100%

98,6%

99,1%

53,9%

99,5%

Finalappropriation

R’000

453,442

72,044

116,384

3,124,781

2,800,713

34,834

57,198

6,659,396

Spending31/03/2009

R’000

453,316

71,875

116,306

3,122,148

2,799,539

34,256

57,196

6,654,636

Variance

R’000

126

169

78

2,633

1,174

578

2

4,760

Spent

%

99,9%

99,8%

99,9%

99,9%

99,9%

98,3%

100%

99,9%

2007/08 Financial year 2008/09 Financial year

Spending per Programme

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� a lack of career mobility (often resulting in job-hopping);and

� a lack of employment flexibility.As it is a challenge to source certain critical skills from the

external market, the Department improved its recruitmentstrategy to ensure that the best skills are recruited andretained. This contributed towards reducing the staffturnover rate.

The Department still faces challenges in addressing issuesof representivity in areas that require specialisedoccupational categories such as surveying, mapping,statistical analysis and land planning. The biggest challengein this regard is to offer competitive salaries that will attractthese individuals. Several initiatives have been put in place toaddress this challenge, including:

� A bursary programme for the recruitment of prospectiveemployees;

� entering into Memoranda of Understanding with tertiaryinstitutions i.e. Faculties of Engineering and the BuiltEnvironment;

� training and development programmes throughcontinued specialisation and diversity within the sub-disciplines of the surveying profession;

� the provision of opportunities for experimental learning;and

� a retention strategy.The Department will design a succession plan aimed at

addressing the shortage of critical skills to ensure theappropriate replacement of key staff.

3. Utilisation of donor fundsThe balance of R1,85 million of the funds received from theBelgium Technical Assistance for Land Restitution for postsettlement and development support purposes was spent.Under the Aid Assistance Fund, R3,11 million was spentduring the year leaving a debit balance of R1,2 million.

4. Trading entities & publicentities

4.1 Trading entities – Registrationof Deeds Trading Account

The main purpose of the Deeds Registration Trading Accountis to finance the operating costs of the various DeedsRegistries responsible for the registration of conventionalbonds, sectional titles and leaseholds.

The main source of funding is fees charged on theregistration of deeds and on the sale of deeds information.Any deficit is accounted for by the Department as a sub-programme under Programme 7: Auxiliary and AssociatedServices.

The total audited revenue generated for the year underreview is R309,7 million which is 26% less than the auditedR418,9 million in 2007/2008. The decrease in revenue ismainly attributable to the decrease in bond registration andtransfer of property. The actual expenditure for the yearunder review is R367,6 million which is only 3% higher thanthe previous year. This increase is mainly attributable to thecredit note received as disclosed on note 20 of the AnnualFinancial Statements and the increase in legal expenses.During the year under review an amount of R54,8 million

was received from the Department to augment the projecteddeficit. The actual deficit was R53.0 million. The balance ofR1,8 million was disclosed in the statement of financialposition as Deferred Revenue and will be used to fundprojected deficit for the financial year 2009/2010.

4.2 Public entities

Inala FarmsInala Farms (Pty) Ltd is a property company founded by theDepartment to provide financial assistance in the form of aloan to certain land reform beneficiaries. To this end, theDepartment acquired land measuring 1 483 hectares inextent for R16,11 million on behalf of the beneficiaries withthe view that the latter would buy the property once theoperations company is self sustaining. The operations of thisproject were conducted through Inala Farming Company(Pty) Ltd (Opco). The workers, who are beneficiaries, formeda trust and acquired 25% of the shares in Opco financedthrough land acquisition grants. The acquired land was heldin Propco, with the Department being the sole shareholder.However, the Department’s shareholding was subsequentlyreduced to 75% when the former Managing Directorexercised his share option acquiring 25% shareholding.Operations are continuing satisfactorily with the beneficiariesstill on the farm.

The Regional Land Claims Commission: Mpumalanga is inthe process of purchasing certain claimed properties fromInala Farms for the purpose of settling restitution claimslodged by the Matsamo Community. Deeds of sale havebeen signed.

Ingonyama TrustThe Ingonyama Trust Board was established in terms of theKwaZulu-Natal Ingonyama Trust Act, 1994 (Act No. 3 of1994). The primary objective of the Trust is to manage theadministration of approximately 2.7 million hectares of landspread throughout the KwaZulu-Natal Province. The corebusiness of the Trust is to manage the land for the materialbenefit and social well-being of the individual members ofthe relevant tribes.

The Board is supported in its day-to-day activities by a fulltime Secretariat. The Secretariat’s work consists of thefollowing categories:

� Real estate management;� financial management; and� general administration.The Board meets every six weeks to formulate and review

policy related matters and to consider the approval of landrights for new development. The Board’s Annual Report forthe 2008/2009 financial year was drafted and submitted forapproval.

During the year under review an amount of R2 492 000was transferred by the Department as a transfer payment tothe Board for the management of the Trust. The full amountwas used during the year.

5. Transfer paymentsTransfer payments are made in the form of advances tomunicipalities who are appointed as implementing agents bythe Department. This cooperative arrangement serves tofacilitate the implementation of land reform and restitution

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projects through the conclusion of agency agreements.These advances are only recognised as expenditure by theDepartment once the benefit has accrued to the relevantbeneficiaries.

A firm of attorneys, Cheadle Thompson and HaysomIncorporated (CTH), was appointed to coordinate legalrepresentation for farm dwellers that are either evicted orthreatened with eviction. This is done across the countrythrough the management of a panel of attorneys. To limitthe risk of not paying the attorneys’ accounts in time, it wasnecessary to make advance payments to CTH. Theseadvances are invested in an interest bearing account andinterest earned is disclosed and paid to the Department.

6. Public private partnerships(PPP)

The National Office PPP gained new momentum during theperiod under review. The Berea site has been purchased bythe Department of Public Works and the site handover is inprocess. The feasibility study was approved by NationalTreasury in September 2008 and the Request forQualification (RFQ) was issued later that month. The RFQwas evaluated and three bidders have been shortlisted toreceive the Request for Proposal (RFP) document. The worldfinancial crisis led to National Treasury issuing amendmentsto be included in the RFP and this process is under way.

7. Corporate governancearrangements

7.1 Risk managementRisk management in the Department is incorporated in thestrategic planning process and quarterly review andassessment meetings of the Department. Due to the factthat the post of risk manager was vacant for some time, theDirectorate: Internal Audit assisted in providing the riskmanagement service to the Department. During the yearunder review, process risk registers were prepared. The riskmanager was appointed in July 2008 however risk registerscould not be prepared for the entire Department due tocapacity constraints.

The Risk and Compliance Committee has been establishedto review and consider all the relevant policies and the riskprofile of the Department. The Committee consists of theDirector-General as chairperson, all Deputy Directors-Generaland certain other senior managers. Delegations areappropriately cascaded to relevant managers, while non-compliance issues are duly reported and addressed by theChief Financial Officer and the Accounting Officer.

7.2 Fraud prevention policiesAs part of the fraud prevention initiatives, the Departmentcontinuously conduct awareness workshops involving all theemployees. The Department has an active fraud and anti-corruption hotline that is hosted independently from theDepartment. Cases reported to this hotline are monitoredand investigated.

The authenticity of service providers is carefully verifiedfollowing all the supply chain management processes beforea contract is awarded. Other fraud prevention initiativesinclude the use of Departmental committees such as the Bid

Adjudication and Evaluation Committees, the InformationTechnology Committees and the Transport Committees fordecision making. It is however realised that due to thenature of decentralised services, particularly around supplychain management, the fraud prevention strategies needregular improvement. This includes the continuous trainingof supply chain management practitioners, the signing of asupply chain management code of conduct by suchpractitioners and all managers, fraud awareness workshopsand updated fraud risk registers.

7.3 Effectiveness of Internal AuditFunction & Audit Committee

Internal Audit provided assurance services and improved theDepartment’s systems of internal controls through effectiveinternal auditing. The three-year strategic rolling and annualinternal audit plans were adopted by the Audit Committee inthe first quarter of the financial year. Internal Audit executedthe projects of the annual audit plan as well as forensicinvestigations. A total of 31 forensic investigation caseswere reported to the Department. Of these, 12investigations were finalised by the end of the financial year.

Internal Audit experienced challenges with capacitybuilding and outsourced certain projects. They also assistedin the risk management function of the Department duringthe first quarter of the financial year.

The Audit Committee is in place and functions effectivelyas required by the Public Finance Management Act, 1999and Treasury Regulations. The current Audit Committeeassumed its duties in September 2008. There were fiveCommittee meetings during the 2008/2009 financial year(including meetings of the previous Audit Committee).

7.4 Management process forminimising conflict of interest

All senior managers of the Department are compelled toannually declare their financial interests to the Minister. It isfurthermore a requirement for members of the BidEvaluation and Bid Adjudication Committees to declare theirpossible interests before they are allowed to participate inbid processes. Supply chain management practitioners arecontinuously reminded about their code of conduct and areprovided with the relevant training in this regard.

7.5 Safety, health &environmental issues

The Directorate: Security Management Services is responsiblefor ensuring the implementation of safety and securitystandards and services throughout the Department. Thisincludes physical, document, communication, computer andsurveillance security. This is done to ensure a healthy andsafe working environment.

During 2008/2009 the Directorate focussed mainly onimproving physical security measures by standardisingsecurity operations for all Departmental offices. Physicalsecurity measures such as automated access control andCCTV camera systems were installed at certain Departmentaloffices.

The Department also maintains an effective fumigationand cleaning plan throughout the year and all buildings arefumigated on a quarterly basis.

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8. Discontinued activitiesThe Department did not have any discontinued activitiesduring the year under review.

9. New proposed activitiesDue to the amendment of the Land Reform: Provision ofLand and Assistance Act, 1993 (Act No. 126 of 1993), theDepartment is in the process of creating a trading entity tomanage all activities relating to PLAS.

10. Asset management

10.1 Departmental & PLAS assetsThe capital and non-capital assets that were procured duringthe 2008/2009 financial year were captured on the BAUDAsset Register. Compliance with the minimum requirementsof PLAS has been achieved, while compliance with the AssetManagement Reforms (AMR) milestones was also achieved.

10.2 Immovable assets In 1994 the Department of Land Affairs inherited immovableproperties which were formerly vested in the South AfricanDevelopment Trust (SADT), Self-governing Territories(Qwaqwa, Lebowa, KaNgwane, GaZankulu and KwaNdebele)and the independent States (Transkei, Bophuthatswana,Venda and Ciskei).

The said immovable properties currently comprises of 8479 land parcels which translates into 1 428 535.2198hectares of land that previously belonged to the mentionedindependent States. It further comprises of 12 009 landparcels which translates to 7 335 935.3090 hectares of landthat previously belonged to the Self-governing Territories andthe SADT.

A further 15 237 parcels of land have been surveyed butnot yet registered in the Deeds Registries. These land parcelscollectively account for 5 436 128.0477 hectares. TheDepartment’s total immovable property portfolio thereforeremains at 35 725 land parcels which translates into a totalof 14 200 598.5765 hectares. This total figure will fluctuateas properties under the custody of the Department getvested and transferred to other spheres of government or aredisposed to private parties, as well as when unsurveyed landis surveyed and registered in the name of the NationalGovernment and placed under the custody of theDepartment.

As the immovable property concerned was acquired priorto 1999, it has been disclosed at a value of R1.00 per landparcel. This in turn means a total value of R35 725.

The extent and value of the immovable property referredto above is accounted for in an Immovable Asset Register.The said register is however incomplete since there remains alot of unsurveyed land in the former Self-governingTerritories and Independent States. This land has recentlybeen identified and maps have been produced to helpfacilitate the surveying process. This is however acomplicated process since all State domestic facilities locatedon such land need to be identified and surveyed to ensurevesting in the correct sphere of government in compliancewith section 239 of the Constitution of the Republic ofSouth Africa, 1993 (Act No. 200 of 1993) and item 28(1) ofSchedule 6 to the Constitution of the Republic of South

Africa, 1996 (Act No. 108 of 1996). This is a real challengesince custodian departments are experiencing resourcerelated challenges. Unless this situation changes, auditorswill continuously express a qualified opinion on thecompleteness of the Immovable Asset Register of theDepartment as these properties cannot be vested until theyare surveyed.

The Department has also noticed that the ImmovableAsset Register is not completely accurate since certainproperties which have been vested in and transferred toprovincial departments, municipalities and private personshave not yet been removed from the register as a result ofcertain internal control weaknesses. This will be addressedbefore the end of the 2009/2010 financial year.

11. Events after thereporting date

The name of the Department has changed from Land Affairsto Rural Development and Land Reform.

Appointment of a new Minister &Deputy MinisterMr G Nkwinti was appointed as the Minister of RuralDevelopment and Land Reform, and Dr J Phaahla wasappointed as the Deputy Minister.

Forensic investigationThere was a forensic audit investigation on PLAS projectsafter the year-end which is still to be finalised. Asrecommended by the investigators, fruitless and wastefulexpenditure was disclosed on the Annual FinancialStatements as a post balance sheet event on the disclosurenote.

12. Performance informationThe operational and financial performance of theDepartment is monitored through various structures such asthe Strategic Management Committee which meets everythird week, Top Management meetings which are held everysecond month and the Quarterly Review and Assessmentmeetings.

The Directorate: Monitoring and Evaluation plays a pivotalrole in synthesising all the performance reports of theDepartment’s Branches and provides comprehensiveoverviews of the Department’s performance to the Director-General and senior management structures. Theseperformance reports are kept as authentic reports forinclusion in the Annual Financial Statements and for theassessment of individual managers.

Performance agreements and work plans are monitoredby the Directorate: Human Resource Management whileperformance assessments are conducted quarterly for juniorstaff and annually for senior managers.

13. Standing Committeeon Public Accounts(SCOPA) Resolutions

There were no SCOPA resolutions in respect of the Vote andthe Deeds Trading Account.

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14. Prior modifications toaudit reports

Qualification

Rental Revenue Receivable – Leased LandThe Department has approved policies on Surveyor-Generaldebtors and Lease Revenue Management. A reconciliationof lease debtors was performed.

The Department is still experiencing certain challenges inrespect of the Powers of Attorney. The Department hasliaised with all the Provincial Departments of Agricultureduring the year under review and has undertaken anintensive process of manually compiling a register of all landmanaged through the Powers of Attorney.

The collection of revenue remains a challenge. There arestill certain fundamental principle issues regarding thefunding and maintenance of leased land that have to beresolved between the Department and the ProvincialDepartments of Agriculture.

15. Exemptions & deviationsreceived from NationalTreasury

The Department has applied for exemption in the 2008/2009financial year in respect of the Powers of Attorney, balanceof grants and advances paid to conveyancers. The requestedexemption was not granted. The Department was requestedto prepare relevant policies in this regard.

16. Other

16.1 Audit report on Pro-activeLand Acquisition Strategy(PLAS)

Due to the audit qualification on PLAS in 2007/2008, theDepartment appointed service providers to verify all assetsthat were acquired through PLAS. This was done to ensurethat accurate and complete information is available whenthe trading entity is established.

16.2 Advance payments toconveyancers

The Restitution of Land Rights Act, 1994 (Act No. 22 of1994), creates the means for the right to restitution orequitable redress as referred to in section 25(7) of theConstitution of the Republic of South Africa, 1996, to berealised.

The Restitution Act empowers the Minister of Land Affairsto purchase, acquire in any other manner, or expropriateland for a claim that meets the requirements of the Act, orto provide relief to a claimant who does not qualify for suchrestitution. Once acquired the land vests in the State andmust be transferred to a claimant once an agreement thatdisposes of the claim against the State has been reached.Reference is made to sections 42A, 42D and 42E of theRestitution Act. When land is acquired for restitution

purposes, a sale agreement is entered into. The purchaseprice of the land is payable as follows:

� 50% of the purchase price is paid into a conveyancer’strust account within 30 days of the signature date of thelast party signing. These funds are deposited by theconveyancer into an interest bearing account for thebenefit of the Department in terms of section 78(2A) ofthe Attorneys Act, 1979 (Act No. 53 of 1979).

� When the registration of transfer takes place, the first50% of the purchase price that was deposited by theconveyancer is recalled from the investment account andthe capital amount is payable to the seller.

� The second 50% of the purchase price is paid by theDepartment to the conveyancer, once registration oftransfer has taken place. These funds are payableimmediately by the conveyancer to the seller, subject tobond cancellation costs, if any. Interest reverts to theDepartment.

Control units are in the process of being establishedwithin the Commission on Restitution of Land Rights and theDepartment, to audit the payments received fromconveyancers and to recover the interest outstanding from2004. Schedules of all affected transactions have sincebeen drawn and the reconciliation process is ongoing. TheLegal Unit of the Commission sent letters of demand tovarious defaulting conveyancers which resulted in therecovery of a total of R34 million by 31 March 2009, ofwhich R18 million was received in the 2008/2009 financialyear.

After numerous meetings with the Auditor-General andNational Treasury, it was agreed to use an average interestrate based on the rates used by various financial institutions,as a basis for the outstanding interest on the first 50%.

In the case of conveyancers who have not respondedpositively to the letters of demand, the State Attorney hasbeen approached to institute legal action.

16.3 Balance of grants The Department has through the land reform redistributionprogramme a prime responsibility to provide the poor withland for settlement and productive use in order to improvetheir livelihoods and to contribute to the social andeconomic development of the country. In pursuit hereof theDepartment provides certain grants and services anddifferent land reform products such as land redistribution,land tenure reform and land development.

The provision of financial assistance for land reformpurposes is made possible by the Land Reform: Provision ofLand and Assistance Act, 1993 (Act No. 126 of 1993), theLand Reform (Labour Tenants) Act, 1996 (Act No. 3 of1996), and the Extension of Security of Tenure Act, 1997(Act No. 62 of 1997).

A balance of grant occurs where any part of the totalgrants was not used for the acquisition of land, planningcosts and/or goods and services. Although legally suchbalances belong to the beneficiaries, the Department doesnot transfer the funds to the beneficiaries due to reasonssuch as inefficient control and management.

The Department realised that currently there is noeffective system for producing a statement or record oftransactions including an age analysis to show the status ofsuch balances per project at any given point in time, and

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that in terms of good accounting principles such amountsshould be disclosed as commitments. An in-house balanceof grants financial system was therefore developed and isnow in use. All relevant financial reports will in future begenerated by this system, including statements and ageanalysis. The policy on Balance of Grants was approved.

17. ApprovalThe Annual Financial Statements set out on pages 66 to 96of this Annual Report have been approved by the AccountingOfficer.

MR T T GWANYADIRECTOR-GENERAL

31 May 2009

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part4 A N N U A LF I N A N C I A L

S T A T E M E N T S

Report by theAuditor-General


RReport of the Auditor-General to Parliamenton the financial statements and performanceinformation of Vote No. 27: Department ofLand Affairs for the year ended 31 March2009

Report on thefinancial statements

Introduction1. I have audited the accompanying financial

statements of the Department of LandAffairs (DLA) which comprise theappropriation statement, the statement offinancial position as at 31 March 2009,the statement of financial performance,the statement of changes in net assetsand the cash flow statement for the yearthen ended, a summary of significantaccounting policies and other explanatorynotes, and the accounting officer’s report,as set out on pages 48 to 55.

The accounting officer’sresponsibility for thefinancial statements2. The accounting officer is responsible for

the preparation and fair presentation ofthese financial statements in accordancewith the modified cash basis ofaccounting determined by the NationalTreasury, as set out in accounting policy

note 1.1 and in the manner required bythe Public Finance Management Act,1999 (Act No. 1 of 1999) (PFMA) and forsuch internal control as the accountingofficer determines is necessary to enablethe preparation of financial statementsthat are free from material misstatement,whether due to fraud or error.

The Auditor-General’sresponsibility3. As required by section 188 of the

Constitution of the Republic of SouthAfrica, 1996 read with section 4 of thePublic Audit Act, 2004 (Act No. 25 of2004) (PAA) my responsibility is to expressan opinion on these financial statementsbased on my audit.

4. I conducted my audit in accordance withthe International Standards on Auditingread with General Notice 616 of 2008,issued in Government Gazette No. 31057of 15 May 2008. Those standards requirethat I comply with ethical requirementsand plan and perform the audit to obtainreasonable assurance about whether thefinancial statements are free from materialmisstatement.

5. An audit involves performing proceduresto obtain audit evidence about theamounts and disclosures in the financialstatements. The procedures selecteddepend on the auditor’s judgement,including the assessment of the risks of

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material misstatement of the financial statements,whether due to fraud or error. In making those riskassessments, the auditor considers internal controlrelevant to the entity’s preparation and fair presentationof the financial statements in order to design auditprocedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. An auditalso includes evaluating the appropriateness ofaccounting policies used and the reasonableness ofaccounting estimates made by management, as well asevaluating the overall presentation of the financialstatements.

6. I believe that the audit evidence I have obtained issufficient and appropriate to provide a basis for myaudit opinion.

Basis for qualified opinion

Receivables for departmental revenue7. The department embarked on an extensive process to

implement and maintain a database to manage andmonitor the lease revenue. However, the audit stillrevealed significant shortcomings in the managementand control of lease revenue. I was therefore unable toobtain sufficient and appropriate audit evidence for thereceivable for departmental revenue, as disclosed in note25 to the financial statements, due to the following:� The department’s database for lease debtors to the

amount of R56,07 million was not up to date and notall lease contracts were available for audit.

� The lease receivable balance for the prior year wasrestated to the amount of R31,72 million; however,sufficient supporting documentation was not availableto verify the restated amount.

� The breakdown and ageing of the operating leaserevenue receivable were not disclosed in the disclosurenotes to the financial statements.

As a result of a lack of supporting documentation, I wasunable to verify valuation, existence and completenessof the receivable for departmental revenue.Consequently, I could not perform any alternativeprocedures to determine whether any adjustments tothe amounts disclosed in the financial statements forreceivables for departmental revenue might benecessary.

Tangible capital assets8. I was unable to obtain sufficient and appropriate audit

evidence to determine the completeness and rightsregarding immoveable properties disclosed at R1 in note32.3 to the financial statements. The department stilldid not have a complete asset register of all immovableproperties belonging to the national government underthe custodianship of the Department of Land Affairs.� Immovable property registered in the name of other

entities and departments was recorded in theimmovable asset register of the department.

� Immovable property that should have been registeredin the name of the national government was still notregistered and was therefore not included in the assetregister of the department.

9. I was not able to perform alternative procedures toconfirm the completeness and valuation of, and rights

and obligations regarding tangible capital assetsdisclosed in the financial statements

Qualified opinion10. In my opinion, except for the possible effects of the

matters described in the Basis for qualified opinionparagraphs, the financial statements present fairly, in allmaterial respects, the financial position of theDepartment of Land Affairs as at 31 March 2009 and itscash flows for the year then ended, in accordance withthe basis of accounting and in the manner required bythe PFMA.

Emphasis of matters11. I draw attention to the following matters on which I do

not express a qualified opinion:

Basis of accounting12. The department’s policy is to prepare financial

statements on the modified cash basis of accountingdetermined by the National Treasury, as set out inaccounting policy note 1.1.

Fruitless and wasteful expenditure13. As disclosed in note 27 to the financial statements,

fruitless and wasteful expenditure amounting to R4,86million was incurred as a result of irregularities in theacquisition of land reform projects.

Irregular expenditure14. As disclosed in note 26 to the financial statements,

irregular expenditure amounting to R74,96 million wasincurred as a result of Parliament not retrospectivelyapproving expenditure incurred in contravention ofsection 10(1)(a) and (b) of the Provision of Land andAssistance Act, 1993 (Act No. 126 of 1993), whichstates that the Minister of Agriculture and Land Affairscan only acquire land as per section 10(1)(b). TheDepartment of Land Affairs, however, acquired assetsother than land through the Pro-Active Land AcquisitionStrategy process. As these purchases did not constitutesubsidies or advances to beneficiaries, they fell outsidethe mandate provided by the Provision of Land andAssistance Act of 1993.

Other matters15. I draw attention to the following matters that relate to

my responsibilities in the audit of the financialstatements:

Non-compliance with applicablelegislation

Public Finance Management Act andTreasury Regulations16. Accruals which exceeded the payment terms of 30 days

as detailed in Treasury Regulation 8.2.3 amounted toR19,98 million. This amount, in turn, exceeded thevoted funds to be surrendered of R4,76 million, as perthe statement of financial performance, by R15,22million. The amount of R15,22 million would thereforehave constituted unauthorised expenditure had theinvoices been paid in time.

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17. The accounting officer did not take effective andappropriate steps to timeously collect all section 78(2A)monies held in trust on behalf of the Department ofLand Affairs, as required in terms of Treasury Regulation11.2.1.

Governance framework18. The governance principles that impact on the auditor’s

opinion on the financial statements are related to theresponsibilities and practices exercised by the accountingofficer and executive management and are reflected inthe internal control deficiencies and key governanceresponsibilities addressed below:

Internal control deficiencies19. Section 38(1)(a)(i) of the PFMA states that the

accounting officer must ensure that the department hasand maintains effective, efficient and transparentsystems of financial and risk management and internalcontrol. The table below depicts the root causes thatgave rise to the deficiencies in the system of internalcontrol, which led to the qualified opinion. The rootcauses are categorised according to the five componentsof an effective system of internal control. (The numberlisted per component can be followed with the legendbelow the table.) In some instances deficiencies exist inmore than one internal control component.

Overall conclusion on financial management based on the root causes20. The findings that resulted in the qualifications are mainly due to an inadequate organisational structure resulting in

inadequate monitoring and supervision to enable an assessment of the effectiveness of internal control over financialreporting.

LegendCE = Control environmentThe organisational structure does not address areas of responsibility and lines of reporting to support effective control overfinancial reporting. 1Management and staff are not assigned appropriate levels of authority and responsibility to facilitate control over financialreporting. 2Human resource policies do not facilitate effective recruitment and training, disciplining and supervision of personnel. 3Integrity and ethical values have not been developed and are not understood to set the standard for financial reporting. 4The accounting officer does not exercise oversight responsibility over financial reporting and internal control. 5Management’s philosophy and operating style do not promote effective control over financial reporting. 6The entity does not have individuals competent in financial reporting and related matters. 7RA = Risk assessmentManagement has not specified financial reporting objectives to enable the identification of risks to reliable financial reporting. 1The entity does not identify risks to the achievement of financial reporting objectives. 2The entity does not analyse the likelihood and impact of the risks identified. 3The entity does not determine a risk strategy/action plan to manage identified risks. 4The potential for material misstatement due to fraud is not considered. 5CA = Control activitiesThere is inadequate segregation of duties to prevent fraudulent data and asset misappropriation. 1General information technology controls have not been designed to maintain the integrity of the information system andthe security of the data. 2Manual or automated controls are not designed to ensure that the transactions have occurred, are authorised, and arecompletely and accurately processed. 3Actions are not taken to address risks to the achievement of financial reporting objectives. 4Control activities are not selected and developed to mitigate risks to financial reporting. 5Policies and procedures related to financial reporting are not established and communicated. 6Realistic targets are not set for financial performance measures, which in turn are not linked to an effective reward system. 7IC = Information and communicationPertinent information is not identified and captured in a form and time frame to support financial reporting. 1Information required to implement internal control is not available to personnel to enable internal control responsibilities. 2Communications do not enable and support the understanding and execution of internal control processes andresponsibilities by personnel. 3M = MonitoringOngoing monitoring and supervision are not undertaken to enable an assessment of the effectiveness of internal controlover financial reporting. 1Neither reviews by internal audit or the audit committee nor self-assessments are evident. 2Internal control deficiencies are not identified and communicated in a timely manner to allow for corrective action to be taken. 3

Par. no. Basis for qualified opinion CE RA CA IC M

7 Receivables for departmental revenue 1, 2 and 3 2, 3 and 4 2, 3, 4, 5 and 6 1

8 Tangible capital assets 1, 2 and 3 2, 3 and 4 2, 3, 4, 5 and 6 1

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Key governance responsibilities21. The PFMA tasks the accounting officer with a number of responsibilities concerning financial and risk management and

internal control. Fundamental to achieving this is the implementation of key governance responsibilities, which I haveassessed as follows:

No. Matter Y N

Clear trail of supporting documentation that is easily available and provided in a timely manner

1. No significant difficulties were experienced during the audit concerning delays or the availability of requestedinformation.

Quality of financial statements and related management information

2. The financial statements were not subject to any material amendments resulting from the audit.

3. The annual report was submitted for consideration prior to the tabling of the auditor’s report.

Timeliness of financial statements and management information

4. The annual financial statements were submitted for auditing as per the legislated deadlines in section 40 ofthe PFMA.

Availability of key officials during audit

5. Key officials were available throughout the audit process.

Development of and compliance with risk management, effective internal control and governance practices

6. Audit committee

• The department had an audit committee in operation throughout the financial year.

• The audit committee operates in accordance with approved, written terms of reference.

• The audit committee substantially fulfilled its responsibilities for the year, as set out in section 77 of thePFMA and Treasury Regulation 3.1.10.

7. Internal audit

• The department had an internal audit function in operation throughout the financial year.

• The internal audit function operates in terms of an approved internal audit plan.

• The internal audit function substantially fulfilled its responsibilities for the year, as set out in TreasuryRegulation 3.2.

8. There are no significant deficiencies in the design and implementation of internal control in respect offinancial and risk management.

9. There are no significant deficiencies in the design and implementation of internal control in respect ofcompliance with applicable laws and regulations.

10. The information systems were appropriate to facilitate the preparation of the financial statements.

11. A risk assessment was conducted on a regular basis and a risk management strategy, which includes afraud prevention plan, is documented and used as set out in Treasury Regulation 3.2.

12. Delegations of responsibility are in place, as set out in section 44 of the PFMA.

Follow-up of audit findings

13. The prior year audit findings have been substantially addressed.

14. SCOPA resolutions have been substantially implemented.

Issues relating to the reporting of performance information

15. The information systems were appropriate to facilitate the preparation of a performance report that isaccurate and complete.

16. Adequate control processes and procedures are designed and implemented to ensure the accuracy andcompleteness of reported performance information.

17. A strategic plan was prepared and approved for the financial year under review for purposes of monitoringthe performance in relation to the budget and delivery by the Department of Land Affairs against its mandate,predetermined objectives, outputs, indicators and targets (Treasury Regulations 5.1, 5.2 and 6.1).

18. There is a functioning performance management system and performance bonuses are only paid afterproper assessment and approval by those charged with governance.

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Overall conclusion on the governanceframework22. To address the findings identified in the key governance

responsibilities the department must address theinadequate organisational structure and the monitoringand supervision undertaken to enable an assessment ofthe effectiveness of internal control over financialreporting.

Investigations23. The Department of Land Affairs engaged both internal

staff appointed and independent consulting firms toconduct investigations on its behalf. The investigationswere initiated based on allegations of corruption andirregularities in the department. The investigations werestill ongoing at the reporting date.

Report on other legal &regulatory requirements

Report on performanceinformation24. I have reviewed the performance information as set out

on pages 16 to 47.

The accounting officer’sresponsibility for the performanceinformation25. The accounting officer has additional responsibilities as

required by section 40(3)(a) of the PFMA to ensure thatthe annual report and audited financial statements fairlypresent the performance against predeterminedobjectives of the department.

The Auditor-General’sresponsibility26. I conducted my engagement in accordance with section

13 of the PAA read with General Notice 616 of 2008,issued in Government Gazette No. 31057 of 15 May2008.

27. In terms of the foregoing my engagement includedperforming procedures of an audit nature to obtainsufficient appropriate evidence about the performanceinformation and related systems, processes andprocedures. The procedures selected depend on theauditor’s judgement.

28. I believe that the evidence I have obtained is sufficientand appropriate to report that significant no findingshave been identified as a result of my review.

Usefulness & reliability of reportedperformance information29. The following criteria were used to assess the usefulness

and reliability of the information on the department’sperformance with respect to the objectives in itsstrategic plan:� Consistency: Has the department reported on its

performance with regard to its objectives, indicatorsand targets in its approved strategic plan?

� Relevance: Is the performance information asreflected in the indicators and targets clearly linked tothe predetermined objectives and mandate? Is thisspecific and measurable, and is the period or deadlinefor delivery specified?

� Reliability: Can the reported performance informationbe traced back to the source data or documentationand is the reported performance information accurateand complete in relation to the source data ordocumentation?

The following audit findings relate to the above criteria:

Reported performance informationnot reliable

Lack of source documentation30. Sufficient appropriate audit evidence in relation to the

reported performance information of programme 5:Land Reform could not be obtained, as the relevantsource documentation could not be provided for auditpurposes on time.

Appreciation31. The assistance rendered by the staff of the Department

of Land Affairs during the audit is sincerely appreciated.

Pretoria2 August 2009

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T

part4A N N U A LF I N A N C I A LS T A T E M E N T S

Statement ofAccounting

Policies &Related Matters

The Financial Statements have been preparedin accordance with the following policies,which have been applied consistently in allmaterial aspects, unless otherwise indicated.However, where appropriate and meaningful,additional information has been disclosed toenhance the usefulness of the FinancialStatements and to comply with the statutoryrequirements of the Public FinanceManagement Act, Act 1 of 1999 (as amendedby Act 29 of 1999), and the TreasuryRegulations issued in terms of the Act and theDivision of Revenue Act, Act 2 of 2006.

1. Presentation of theFinancial Statements

1.1 Basis of preparationThe Financial Statements have been preparedon a modified cash basis of accounting, exceptwhere stated otherwise. The modified cashbasis constitutes the cash basis of accountingsupplemented with additional disclosure items.Under the cash basis of accounting,transactions and other events are recognisedwhen cash is received or paid.

1.2 Presentation currencyAll amounts have been presented in thecurrency of the South African Rand (R) which isalso the functional currency of the department.

1.3 RoundingUnless otherwise stated all financial figureshave been rounded to the nearest onethousand Rand (R’000).

1.4 Comparative figuresPrior period comparative information has beenpresented in the current year’s financialstatements. Where necessary figures includedin the prior period financial statements havebeen reclassified to ensure that the format inwhich the information is presented isconsistent with the format of the current year’sfinancial statements.

1.5 Comparative figures -AppropriationStatement

A comparison between actual amounts andfinal appropriation per major classification ofexpenditure is included in the appropriationstatement.

2. Revenue

2.1 Appropriated fundsAppropriated funds are recognised in thefinancial records on the date the appropriationbecomes effective. Adjustments to theappropriated funds made in terms of the


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adjustments budget process are recognised in the financialrecords on the date the adjustments become effective.

Total appropriated funds are presented in the statementof financial performance.

Unexpended appropriated funds are surrendered to theNational Revenue Fund. Amounts owing to the NationalRevenue Fund at the end of the financial year are recognisedin the statement of financial position.

2.2 Statutory AppropriationStatutory appropriations are recognised in the financialrecords on the date the appropriation becomes effective.Adjustments to the statutory appropriations made in termsof the adjustments budget process are recognised in thefinancial records on the date the adjustments becomeeffective.

Total statutory appropriations are presented in thestatement of financial performance.

Unexpended statutory appropriations are surrendered tothe National Revenue Fund. Amounts owing to the NationalRevenue Fund at the end of the financial year are recognisedin the statement of financial position.

2.3 Departmental revenueAll departmental revenue is paid into the National

Revenue Fund when received, unless otherwise stated.Amounts owing to the National Revenue Fund at the end ofthe financial year are recognised in the statement of financialposition.

Amounts receivable at the reporting date are disclosed inthe disclosure notes to the annual financial statements.

2.3.1 Tax revenueTax revenue consists of all compulsory unrequited amountscollected by the department in accordance with laws and orregulations (excluding fines, penalties & forfeits).

Tax receipts are recognised in the Statement of FinancialPerformance when received.

2.3.2 Sales of goods & services otherthan capital assets

The proceeds received from the sale of goods and/or theprovision of services is recognised in the Statement ofFinancial Performance when the cash is received.

2.3.3 Fines, penalties & forfeitsFines, penalties & forfeits are compulsory unrequitedamounts which were imposed by a court or quasi-judicialbody and collected by the department. Revenue arising fromfines, penalties and forfeits is recognised in the Statement ofFinancial Performance when the cash is received.

2.3.4 Interest, dividends & renton land

Interest, dividends and rent on land is recognised in theStatement of Financial Performance when the cash isreceived.

2.3.5 Sale of capital assetsThe proceeds received on sale of capital assets arerecognised in the Statement of Financial Performance whenthe cash is received.

2.3.6 Financial transactions in assets& liabilities

Repayments of loans and advances previously extended toemployees and public corporations for policy purposes arerecognised as revenue in the Statement of FinancialPerformance on receipt of the funds.

Cheques issued in previous accounting periods that expirebefore being banked are recognised as revenue in theStatement of Financial Performance when the chequebecomes stale. When the cheque is reissued the payment ismade from Revenue.

Forex gains are recognised on payment of funds.

2.3.7 Transfers received(including gifts, donations &sponsorships)

All cash gifts, donations and sponsorships are paid into theNational/Provincial Revenue Fund and recorded as revenue inthe Statement of Financial Performance when received.Amounts receivable at the reporting date are disclosed in thedisclosure notes to the financial statements.

All in-kind gifts, donations and sponsorships are disclosedat fair value in an annexure to the financial statements.

2.4 Direct Exchequer receiptsAll direct exchequer fund receipts are recognised in theStatement of Financial Performance when the cash isreceived.

2.5 Local & foreign aidassistance

Local and foreign aid assistance is recognised as revenuewhen notification of the assistance is received from theNational Treasury or when the department directly receivesthe cash from the donor(s).

All in-kind local and foreign aid assistance are disclosed atfair value in the annexure to the annual financial statements.

The cash payments made during the year relating to localand foreign aid assistance projects are recognised asexpenditure in the Statement of Financial Performance. Thevalue of the assistance expensed prior to the receipt of thefunds is recognized as a receivable in the statement offinancial position.

Inappropriately expensed amounts using local and foreignaid assistance and any unutilised amounts are recognised aspayables in the statement of financial position.

3. Expenditure

3.1 Compensation ofemployees

3.1.1 Short-term employee benefitsSalaries and wages comprise payments to employees(including leave entitlements, thirteenth cheques andperformance bonuses). Salaries and wages are recognised asan expense in the Statement of Financial Performance whenfinal authorisation for payment is effected on the system (byno later than 31 March of each year). Capitalised

land a

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1 APRIL 2008 - 31 MARCH 2009 63

compensation forms part of the expenditure for capitalassets in the Statement of Financial Performance(1).

All other payments are classified as current expense.Short-term employee benefits that give rise to a present

legal or constructive obligation are disclosed in the disclosurenotes to the financial statements. These amounts are notrecognised in the Statement of Financial Performance orPosition.

3.1.2 Post retirement benefitsThe department provides retirement benefits (pensionbenefits) for certain of its employees through a definedbenefit plan for government employees. These benefits arefunded by both employer and employee contributions.

Employer contributions (i.e. social contributions) to thefund are expensed when the final authorisation for paymentto the fund is effected on the system (by no later than 31March of each year). No provision is made for retirementbenefits in the financial statements of the department. Anypotential liabilities are disclosed in the financial statements ofthe National/Provincial Revenue Fund and not in the financialstatements of the employer department.

The department provides medical benefits for certain ofits employees. Employer contributions to the medical fundsare expensed when final authorisation for payment to thefund is effected on the system (by no later than 31 March ofeach year).

3.1.3 Termination benefitsTermination benefits such as severance packages arerecognised as an expense in the Statement of FinancialPerformance as a transfer (to households) when the finalauthorisation for payment is effected on the system (by nolater than 31 March of each year).

3.1.4 Other long-term employeebenefits

Other long-term employee benefits (such as capped leave)are recognised as an expense in the Statement of FinancialPerformance as a transfer (to households) when the finalauthorisation for payment is effected on the system (by nolater than 31 March of each year).

Long-term employee benefits that give rise to a presentlegal or constructive obligation are disclosed in the disclosurenotes to the financial statements. These amounts are notrecognised in the Statement of Financial Performance orPosition.

3.2 Goods and servicesPayments made for goods and/or services are recognised asan expense in the Statement of Financial Performance whenthe final authorisation for payment is effected on the system(by no later than 31 March of each year). The expense isclassified as capital if the goods and services were used for acapital project or an asset of R5000 or more is purchased.All assets costing less than R5000 will also be reflected undergoods and services.

3.3 Interest and rent on landInterest and rental payments are recognised as an expense inthe Statement of Financial Performance when the final

authorisation for payment is effected on the system (by nolater than 31 March of each year). This item excludes rentalfor the use of buildings or other fixed structures. If it is notpossible to distinguish between payment for the use of landand the fixed structures on it, the whole amount should berecorded under goods and services.

3.4 Financial transactions inassets & liabilities

Debts are written-off when identified as irrecoverable. Debtswritten-off are limited to the amount of savings and/orunderspending of appropriated funds. The write-off occursat year-end or when funds are available. No provision ismade for irrecoverable amounts but amounts are disclosedas a disclosure note.

Forex losses are recognised on payment of funds.All other losses are recognised when authorisation has

been granted for the recognition thereof.

3.5 Unauthorised expenditureWhen discovered unauthorised expenditure is recognised asan asset in the statement of financial position until such timeas the expenditure is either approved by the relevantauthority, recovered from the responsible person or written-off as irrecoverable in the Statement of FinancialPerformance.

Unauthorised expenditure approved with funding isrecognised in the Statement of Financial Performance whenthe unauthorised expenditure is approved and the relatedfunds are received. Where the amount is approved withoutfunding it is recognised as expenditure, subject to availabilityof savings, in the Statement of Financial Performance on thedate of approval.

3.6 Fruitless & wastefulexpenditure

Fruitless and wasteful expenditure is recognised as an assetin the statement of financial position until such time as theexpenditure is recovered from the responsible person orwritten-off as irrecoverable in the Statement of FinancialPerformance.

3.7 Irregular expenditureIrregular expenditure is recognised as expenditure in theStatement of Financial Performance. If the expenditure is notcondoned by the relevant authority it is treated as an assetuntil it is recovered or written-off as irrecoverable.

3.8 Transfers & subsidiesTransfers and subsidies are recognised as an expense whenthe final authorisation for payment is effected on the system(by no later than 31 March of each year).

3.9 Expenditure for capitalassets

Payments made for capital assets are recognised as anexpense in the Statement of Financial Performance when thefinal authorisation for payment is effected on the system (byno later than 31 March of each year).

(1) This accounting policy is only relevant where the department elects to capitalise the compensation paid to employees involvedon capital projects

land a

ffair

s


4. Assets

4.1 Cash & cash equivalentsCash and cash equivalents are carried in the statement offinancial position at cost.

For the purposes of the cash flow statement, cash andcash equivalents comprise cash on hand, deposits held, othershort-term highly liquid investments and bank overdrafts.

4.2 Other financial assetsOther financial assets are carried in the statement of financialposition at cost.

4.3 Prepayments & advancesAmounts prepaid or advanced are recognised in thestatement of financial position when the payments aremade.

Pre-payments and advances outstanding at the end of theyear are carried in the statement of financial position at cost.

4.4 ReceivablesReceivables included in the statement of financial positionarise from cash payments made that are recoverable fromanother party.

Receivables outstanding at year-end are carried in thestatement of financial position at cost plus any accruedinterest.

4.5 InvestmentsCapitalised investments are shown at cost in the statementof financial position. Any cash flows such as dividendsreceived or proceeds from the sale of the investment arerecognised in the statement of financial performance whenthe cash is received.

Investments are tested for an impairment loss wheneverevents or changes in circumstances indicate that theinvestment may be impaired. Any loss is included in thedisclosure notes.

4.6 LoansLoans are recognised in the statement of financial position atthe nominal amount when cash is paid to the beneficiary.Loan lances are reduced when cash repayments are receivedfrom the beneficiary. Amounts that are potentiallyirrecoverable are included in the disclosure notes.

Loans that are outstanding at year-end are carried in thestatement of financial position at cost.

4.7 InventoryInventories purchased during the financial year are disclosedat cost in the notes.

4.8 Capital assetsA capital asset is recorded on receipt of the item at cost.Cost of an asset is defined as the total cost of acquisition.Where the cost cannot be determined accurately, the capitalasset should be stated at fair value. Where fair value cannotbe determined, the capital asset is included in the assetregister at R1.

Projects (of construction/development) running over morethan one financial year relating to assets, are only capitalised

as assets on completion of the project and at the total costincurred over the duration of the project.

Disclosure Notes 30 to 32 reflect the total movement inthe asset register for the current financial year.

5. Liabilities

5.1 Voted funds to be surrenderedto the Revenue Fund

Unexpended appropriated funds are surrendered to theNational/Provincial Revenue Fund. Amounts owing to theNational/Provincial Revenue Fund at the end of the financialyear are recognised in the statement of financial position

5.2 Departmental revenue to besurrendered to the RevenueFund

Amounts owing to the National/Provincial Revenue Fund atthe end of the financial year are recognised in the statementof financial position at cost.

5.3 Bank overdraftThe bank overdraft is carried in the statement of financialposition at cost.

5.4 PayablesRecognised payables mainly comprise of amounts owing toother governmental entities. These payables are recognisedat historical cost in the statement of financial position.

5.5 Contingent liabilitiesContingent liabilities are included in the disclosure notes.

5.6 CommitmentsCommitments are not recognised in the statement offinancial position as a liability or as expenditure in theStatement of Financial Performance but are included in thedisclosure notes.

5.7 AccrualsAccruals are not recognised in the statement of financialposition as a liability or as expenditure in the Statement ofFinancial Performance but are included in the disclosurenotes.

5.8 Employee benefitsShort-term employee benefits that give rise to a present legalor constructive obligation are disclosed in the disclosurenotes to the financial statements. These amounts are notrecognised in the Statement of Financial Performance or thestatement of financial position.

5.9 Lease commitmentsFinance leasesFinance leases are not recognised as assets and liabilities inthe statement of financial position. Financial lease paymentsare recognised as an expense in the Statements of FinancialPerformance and are apportioned between the capital and

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1 APRIL 2008 - 31 MARCH 2009 65

the interest portions. The finance lease liability is disclosed inthe disclosure notes to the financial statements.

Operating leasesOperating lease payments are recognised as an expense inthe Statement of Financial Performance. The operating leasecommitments are disclosed in the disclosure notes to thefinancial statements.

6. Receivables fordepartmental revenue

Receivables for departmental revenue are disclosed in thedisclosure notes to the annual financial statements.

7. Net Assets

7.1 Capitalisation reserveThe capitalisation reserve comprises of financial assets and/orliabilities originating in a prior reporting period but whichare recognised in the statement of financial position for thefirst time in the current reporting period. Amounts aretransferred to the National/Provincial Revenue Fund ondisposal, repayment or recovery of such amounts.

7.2 Recoverable revenueAmounts are recognised as recoverable revenue when apayment made in a previous financial year becomesrecoverable from a debtor in the current financial year.

8. Related party transactionsSpecific information with regards to related partytransactions is included in the disclosure notes.

9. Key management personnelCompensation paid to key management personnel includingtheir family members where relevant, is included in thedisclosure notes.

10. Public private partnershipsA description of the PPP arrangement, the contract fees andcurrent and capital expenditure relating to the PPParrangement is included in the disclosure notes.


vote 27

Appropriation Statementfor the year ended 31 March 2009

1. AdministrationCurrent paymentTransfers and subsidiesPayment for capital assets

2. Surveys and MappingCurrent paymentTransfers and subsidiesPayment for capital assets

3. Cadastral ServicesCurrent paymentTransfers and subsidiesPayment for capital assets

4. RestitutionCurrent paymentTransfers and subsidiesPayment for capital assets

5. Land ReformCurrent paymentTransfers and subsidiesPayment for capital assets

6. Spatial Planning &informationCurrent paymentTransfers and subsidiesPayment for capital assets

7. Auxiliary & AssociatedServicesCurrent paymentTransfers and subsidiesPayment for capital assets

TOTAL

AdjustedAppro-priation

R'000

406,568116

17,198

81,9312,1467,338

112,19725

2,653

362,4642,721,944

13,897

311,2261,244,0731,333,170

29,6192,080

587

10,1622-

6,659,396

Shifting ofFunds

R'000

18,8368,2694,912

(12,546)772

2,703

2,74581

942

(24,218)72,4573,610

(8,743)(213,775)

139,655

3,950-

350

---

-

Virement

R'000

(3,638)4,602

(3,421)

(6,235)(336)

(3,729)

(2,107)-

(152)

(20,157)(8,238)

3,022

(7,241)8,000

(5,652)

(1,320)-

(432)

(7,780)54,814

-

-

FinalAppro-priation

R'000

421,76612,98718,689

63,1502,5826,312

112,835106

3,443

318,0892,786,163

20,529

295,2421,038,2981,467,173

32,2492,080

505

2,38254,816

-

6,659,396

64,170-

6,723,566

ActualExpendi-

ture

R'000

421,65612,98318,677

62,98525806,310

112,763104

3,439

318,0662,783,672

20,410

294,7431,037,6341,467,162

32,2081,544

504

2,38254,814

-

6,654,636

3,112

6,657,748

Variance

R'000

1104

12

16522

7224

232,491

119

49966411

41536

1

-2-

4,760

Expendi-ture as %of finalappro-

priation%

100.0%100.0%99.9%

99.7%99.9%

100.0%

99.9%98.1%99.9%

100.0%99.9%99.4%

99.8%99.9%

100.0%

99.9%74.2%98.8%

100.0%100.0%

-

99.9%

FinalAppro-priation

R'000

401,3567,461

17,737

70,1364,867

23,082

130,9521,2025,783

288,5123,333,594

16,505

233,748507,810851,913

20,999-

1,019

8,5242

3,067

5,928,269

176,3801,885

6,106,534

ActualExpendi-

ture

R'000

401,1987,304

16,492

70,0744,654

22,529

130,9211,1785,517

288,4433,333,594

16,428

233,440486,119851,514

20,962-

874

3,274-

2,982

5,897,497

35

5,897,532

Appropriation per programme

2008/09 2007/08

TOTAL (brought forward)

Reconciliation with statement of financial performance

ADD

Departmental receiptsAid assistance

Actual amounts per statement of financial performance (totalrevenue)

ADD

Aid assistance

Actual amounts per statement of financial performance (totalexpenditure)

1 APRIL 2008 - 31 MARCH 2009 67

Current paymentsCompensation of employeesGoods and servicesInterest and rent on landFinancial transactions in assetsand liabilitiesTransfers and subsidies Provinces and municipalitiesDepartmental agencies andaccountsUniversities and technikonsForeign governments andinternational organisationsPublic corporations and privateenterprisesNon-profit institutions Households Payments for capital assetsBuildings and other fixedstructuresMachinery and equipmentBiological or cultivated assetsSoftware and other intangibleassetsLand and subsoil assets

Total


R'000

731,936582,231

-

-

4

2,494-

1,200

12,080

3,964,607

14440,036

-

1,3581,333,305

6,659,396

Shifting ofFunds

R'000

(90,556)70,573

7

-

44

--

(75)

-2

(132,167)

(144)11,173

-

(208)141,351

-

Virement

R'000

(28,652)(19,826)

-

-

-

54,814-

-

--

4,028

-(9,452)

-

(1,150)238

-

FinalAppro-priation

R'000

612,728632,978

7

-

48

57,308-

1,125

12,082

3,836,468

-41,757

-

-1,474,894

6,659,396

ActualExpendi-

ture

R'000

610,553631,882

6

2,361

26

57,306-

1,124

-1,546

3,833,330

-41,624

-

-1,474,878

6,654,636

Variance

R'000

2,1751,096

1

(2,361)

22

2-

1

1536

3,138

-133

-

-16

4,760

Expendi-ture as %of finalappro-

priation%

99.6%99.8%85.7%

-

54.2%

100.0%-

99.9%

-74.3%99.9%

-99.7%

-

-100.0%

99.9%

FinalAppro-priation

R'000

479,263674,964

-

-

139

2,353-

1,100

51-

3,851,293

2,44264,1639,493

9,913833,095

5,928,269

ActualExpendi-

ture

R'000

476,092668,388

-

3,832

77

2,351-

1,026

50-

3,829,345

2,44263,1379,491

8,433832,833

5,897,497

Appropriation per economic classification

2008/09 2007/08


vote 27

Detail per Programmefor the year ended 31 March 2009

Programme 1: AdministrationDetails per Sub-Programme

1.1 ManagementCurrent paymentTransfers and subsidiesPayment for capital assets

1.2 Corporate ServicesCurrent paymentTransfers and subsidiesPayment for capital assets

1.3 Property ManagementCurrent paymentTransfers and subsidiesPayment for capital assets

Total


R'000

102,1914

970

264,326112

16,228

40,051--

423,882

Shifting ofFunds

R'000

(29,249)346

7,612

48,0857,923

(2,700)

---

32,017

Virement

R'000

(3,965)(2)

(2,276)

(4,186)4,604

(1,145)

4,513--

(2,457)

FinalAppro-priation

R'000

68,977348

6,306

308,22512,63912,383

44,564--

453,442

Variance

R'000

36-4

7448

---

126

Expen-diture as% of final

appro-priation

%

99.9%100.0%99.9%

100.0%100.0%99.9%

100.0%--

100.0%

FinalAppro-priation

R'000

81,74656

2,089

267,6557,405

15,648

51,955--

426,554

Actualexpen-diture

R'000

81,63851

1,455

267,6557,253

15,037

51,905--

424,994

ActualExpen-diture

R'000

68,941348

6,302

308,15112,63512,375

44,564--

453,316

2008/09 2007/08

Programme 1 per economicclassification

Current paymentCompensation of employeesGoods & servicesInterest & rent on landFinancial transactions in assets &liabilitiesTransfers & subsidies to:Provinces & municipalitiesDepartmental agencies & accountsUniversities & technikonsForeign governments &international organisations Public corporations & privateenterprisesNon-profit institutionsHouseholdsPayment for capital assetsBuildings & other fixed structuresMachinery & equipmentBiological or cultivated assetsSoftware & other intangible assetsLand & subsoil assets

Total


R'000

190,847215,721

-

-

1--

-

--

115

-17,096

-102

-

423,882

Shifting ofFunds

R'000

(44,681)63,517

-

-

9--

-

-2

8,258

-5,014

-(102)

-

32,017

Virement

R'000

(11,740)8,102

-

-

---

-

--

4,602

-(3,421)

---

(2,457)

FinalAppro-priation

R'000

134,426287,340

-

-

10--

-

-2

12,975

-18,689

---

453,442

Variance

R'000

14515

-

(49)

2--

-

--1

-12

---

126


appro-priation

%

99.9%100.0%

-

-

80.0%--

-

-100.0%100.0%

-99.9%

---

100.0%

FinalAppro-priation

R'000

109,121292,235

-

-

52--

-

50-

7,359

-8,872

-8,865

-

426,554

Actualexpen-diture

R'000

106,098291,268

-

3,832

18--

-

50-

7,236

-8,309

-8,183

-

424,994

ActualExpen-diture

R'000

134,281287,325

-

49

8--

-

-2

12,974

-18,677

---

453,316

2008/09 2007/08

1 APRIL 2008 - 31 MARCH 2009 69

Details per Sub-Programme

2.1 Surveys and MappingCurrent paymentTransfers and subsidiesPayment for capital assets

Total


R'000

81,9312,1467,338

91,415

Shifting ofFunds

R'000

(12,546)772

2,703

(9,071)

Virement

R'000

(6,235)(336)

(3,729)

(10,300)

FinalAppro-priation

R'000

63,1502,5826,312

72,044

Variance

R'000

16522

169


appro-priation

%

99.7%99.9%

100.0%

99.8%

FinalAppro-priation

R'000

70,1364,867

23,082

98,085

Actualexpen-diture

R'000

70,0744,654

22,529

97,257

ActualExpen-diture

R'000

62,9852,5806,310

71,875

2008/09 2007/08



Total


R'000

44,84337,088

-

-

3--

1,200

--

943

1296,313

-896

-

91,415

Shifting ofFunds

R'000

(8,007)(4,546)

7

-

1--

(75)

--

846

(129)2,578

-254

-

(9,071)

Virement

R'000

(1,990)(4,245)

-

-

---

-

--

(336)

-(2,579)

-(1,150)

-

(10,300)

FinalAppro-priation

R'000

34,83628,297

7

-

4--

1,125

--

1,453

-6,312

---

72,044

Variance

R'000

148171

(2)

2--

1

---

-2---

169


appro-priation

%

99.6%99.9%85.7%

-

50.0%--

99.9%

--

100.0%

-100.0%

---

99.8%

FinalAppro-priation

R'000

34,61435,522

-

-

6--

1,100

--

3,761

-22,600

-482

-

98,085

Actualexpen-diture

R'000

34,55235,522

-

-

2--

1,026

--

3,626

-22,529

---

97,257

ActualExpen-diture

R'000

34,69828,280

6

2

2--

1,124

--

1,453

-6,310

---

71,875

2008/09 2007/08

Programme 2: Surveys & Mapping

Programme 3: Cadastral Surveys Details per Sub-Programme

3.1 Cadastral SurveysCurrent paymentTransfers and subsidiesPayment for capital assets

Total


R'000

112,19725

2,653

114,875

Shifting ofFunds

R'000

2,74581

942

3,768

Virement

R'000

(2,107)-

(152)

(2,259)

FinalAppro-priation

R'000

112,835106

3,443

116,384

Variance

R'000

7224

78


appro-priation

%

99.9%98.1%99.9%

99.9%

FinalAppro-priation

R'000

130,9521,2025,783

137,937

Actualexpen-diture

R'000

130,9211,1785,517

137,616

ActualExpen-diture

R'000

112,763104

3,439

116,306

2008/09 2007/08




Total


R'000

88,93423,263

-

-

---

-

--

25

152,278

-360

-

114,875

Shifting ofFunds

R'000

2,879(134)

-

-

1--

-

--

80

(15)1,317

-(360)

-

3,768

Virement

R'000

(3,170)1,063

-

-

---

-

---

-(152)

---

(2,259)

FinalAppro-priation

R'000

88,64324,192

-

-

1--

-

--

105

-3,443

---

116,384

Variance

R'000

2165-

(149)

1--

-

--1

-4---

78


appro-priation

%

99.8%100.0%

-

-

---

-

--

99.0%

-99.9%

---

99.9%

FinalAppro-priation

R'000

83,32047,632

-

-

26--

-

--

1,176

-5,637

-146

-

137,937

Actualexpen-diture

R'000

83,28947,632

-

-

2--

-

--

1,176

-5,517

---

137,616

ActualExpen-diture

R'000

88,42724,187

-

149

---

-

--

104

-3,439

---

116,306

2008/09 2007/08


4.1 National OfficeCurrent paymentTransfers and subsidiesPayment for capital assets

4.2 Regional OfficeCurrent paymentTransfers and subsidiesPayment for capital assets

4.3 Restitution GrantsCurrent paymentTransfers and subsidiesPayment for capital assets

Total


R'000

44,013-

2,129

318,451-

11,768

-2,721,944

-

3,098,305

Shifting ofFunds

R'000

(7,160)-

10

(17,058)8

3,600

-72,449

-

51,849

Virement

R'000

(6,728)-

(1,055)

(13,429)-

(9,913)

-(8,238)13,990

(25,373)

FinalAppro-priation

R'000

30,125-

1,084

287,9648

5,455

-2,786,155

13,990

3,124,781

Variance

R'000

18-7

51

96

-2,490

16

2,633


appro-priation

%

99.9%-

99.4%

100.0%87.5%98.2%

-99.9%99.9%

99.9%

FinalAppro-priation

R'000

27,493-

600

261,01963

15,905

-3,333,531

-

3,638,611

Actualexpen-diture

R'000

27,474-

525

260,96963

15,903

-3,333,531

-

3,638,465

ActualExpen-diture

R'000

30,107-

1,077

287,9597

5,359

-2,783,665

13,974

3,122,148

2008/09 2007/08

Programme 4: Restitution

1 APRIL 2008 - 31 MARCH 2009 71


5.1 National OfficeCurrent paymentTransfers and subsidiesPayment for capital assets

5.2 Provincial OfficeCurrent paymentTransfers and subsidiesPayment for capital assets

5.3 Land Reform GrantsCurrent paymentTransfers and subsidiesPayment for capital assets

5.4 KwaZulu-Natal IngonyamaTrust BoardCurrent paymentTransfers and subsidiesPayment for capital assets

5.5 The Land ReformEmpowerment FacilityCurrent paymentTransfers and subsidiesPayment for capital assets

5.6 Communal Land RightsProgrammeCurrent paymentTransfers and subsidiesPayment for capital assets

Total


R'000

59,716-

530

227,820-

1,332,640

-1,241,580

-

-2,492

-

-1-

23,690--

2,888,469

Shifting ofFunds

R'000

(6,556)-

79

(2,187)25

139,576

-(213,800)

-

---

---

---

(82,863)

Virement

R'000

(2,116)-

141

(872)-

(5,793)

-8,000

-

---

---

(4,253)--

(4,893)

FinalAppro-priation

R'000

51,044-

750

224,76125

1,466,423

-1,035,780

-

-2,492

-

-1-

19,437--

2,800,713

Variance

R'000

455-

10

43171

-646

-

---

-1-

1--

1,174


appro-priation

%

99.1%-

98.7%

100.0%32.0%

100.0%

-99.9%

-

-100.0%

-

---

100.0%--

100.0%

FinalAppro-priation

R'000

54,589645

1,468

174,61939

850,445

-504,774

-

-2,351

-

-1-

4,540--

1,593,471

Actualexpen-diture

R'000

54,580643

1,126

174,60939

850,388

-483,086

-

-2,351

-

---

4,251--

1,571,073

ActualExpen-diture

R'000

50,589-

740

224,7188

1,466,422

-1,035,134

-

-2,492

-

---

19,436--

2,799,539

2008/09 2007/08



Total


R'000

207,334155,130

-

-

---

-

--

2,721,944

-10,897

--

3,000

3,098,305

Shifting ofFunds

R'000

(13,008)(11,210)

-

-

8--

-

--

72,449

-(2,390)

--

6,000

51,849

Virement

R'000

(8,661)(11,496)

-

-

---

-

--

(8,238)

-(1,968)

--

4,990

(25,373)

FinalAppro-priation

R'000

185,665132,424

-

-

8--

-

--

2,786,155

-6,539

--

13,990

3,124,781

Variance

R'000

133748

-

(858)

1--

-

--

2,490

-104

--

15

2,633


appro-priation

%

99.9%99.4%

-

-

87.5%--

-

--

99.9%

-98.4%

--

99.9%

99.9%

FinalAppro-priation

R'000

127,520160,992

-

-

16--

-

--

3,333,578

-5,422

--

11,083

3,638,611

Actualexpen-diture

R'000

127,501160,942

-

-

16--

-

--

3,333,578

-5,345

--

11,083

3,638,465

ActualExpen-diture

R'000

185,532131,676

-

858

7--

-

--

2,783,665

-6,435

--

13,975

3,122,148

2008/09 2007/08

Programme 5: Land Reform




Total


R'000

181,209130,017

-

-

-2,492

-

-

1-

1,241,580

-2,865

--

1,330,305

2,888,469

Shifting ofFunds

R'000

(27,038)18,295

-

-

25--

-

--

(213,800)

-4,304

--

135,351

(82,863)

Virement

R'000

(2,391)(4,850)

-

-

---

-

--

8,000

-(900)

--

(4,752)

(4,893)

FinalAppro-priation

R'000

151,780143,462

-

-

252,492

-

-

1-

1,035,780

-6,269

--

1,460,904

2,800,713

Variance

R'000

1,457297

-

(1,254)

16--

-

1-

646

-10

--1

1,174


appro-priation

%

99.0%99.8%

-

-

36.0%100.0%

-

-

--

99.9%

-99.8%

--

100.0%

100.0%

FinalAppro-priation

R'000

114,335119,413

-

-

392,351

-

-

1-

505,419

2,44217,6369,493

330822,012

1,593,471

Actualexpen-diture

R'000

114,335119,105

-

-

392,351

-

-

--

483,729

2,44217,5819,491

250821,750

1,571,073

ActualExpen-diture

R'000

150,323143,165

-

1,254

92,492

-

-

--

1,035,134

-6,259

--

1,460,903

2,799,530

2008/09 2007/08

Programme 6: Spatial Planning & InformationDetails per Sub-Programme

6.1 Management & SupportServicesCurrent paymentTransfers and subsidiesPayment for capital assets

6.2 Spatial Planning & InformationCurrent paymentTransfers and subsidiesPayment for capital assets

6.3 South African Council forPlannersCurrent paymentTransfers and subsidiesPayment for capital assets

Total


R'000

11,145-

511

18,474-

76

-2,080

-

32,286

Shifting ofFunds

R'000

4,400-

80

(450)-

270

---

4,300

Virement

R'000

(113)-

(391)

(1,207)-

(41)

---

(1,752)

FinalAppro-priation

R'000

15,432-

200

16,817-

305

-2,080

-

34,834

Variance

R'000

5--

36-1

-536

-

578


appro-priation

%

100.0%-

100.0%

99.8%-

99.7%

-74.2%

-

98.3%

FinalAppro-priation

R'000

11,971-

760

9,028-

259

---

22,018

Actualexpen-diture

R'000

11,943-

640

9,019-

234

---

21,836

ActualExpen-diture

R'000

15,427-

200

16,781-

304

-1,544

-

34,256

2008/09 2007/08

1 APRIL 2008 - 31 MARCH 2009 73


7.1 Government Motor TransportCurrent paymentTransfers and subsidiesPayment for capital assets

7.2 Registration of Deeds TradingAccountCurrent paymentTransfers and subsidiesPayment for capital assets

7.3 Sector Education & Training AuthorityCurrent paymentTransfers and subsidiesPayment for capital assets

7.4 Capital WorksCurrent paymentTransfers and subsidiesPayment for capital assets

Total


R'000

---

-1-

-1-

10,162--

10,164

Shifting ofFunds

R'000

---

---

---

---

-

Virement

R'000

---

-54,814

-

---

(7,780)--

47,034

FinalAppro-priation

R'000

---

-54,815

-

-1-

2,382--

57,198

Variance

R'000

---

-1-

-1-

---

2


appro-priation

%

---

-100.0%

-

---

100.0%--

100.0%

FinalAppro-priation

R'000

--

3,067

-1-

-1-

8,524--

11,593

Actualexpen-diture

R'000

--

2,982

---

---

3,274--

6,256

ActualExpen-diture

R'000

---

-54,814

-

---

2,382--

57,196

2008/09 2007/08



Total


R'000

18,76910,850

-

-

---

-

-2,080

-

-587

---

32,286

Shifting ofFunds

R'000

(701)4,651

-

-

---

-

---

-350

---

4,300

Virement

R'000

(700)(620)

-

-

---

-

---

-(432)

---

(1,752)

FinalAppro-priation

R'000

17,36814,881

-

-

---

-

-2,080

-

-505

---

34,834

Variance

R'000

7614

-

(49)

---

-

-536

-

-1---

578


appro-priation

%

99.6%99.9%

-

-

---

-

-74.2%

-

-99.8%

---

98.3%

FinalAppro-priation

R'000

10,35310,646

-

-

---

-

---

-929

-90

-

22,018

Actualexpen-diture

R'000

10,31710,645

-

-

---

-

---

-874

---

21,836

ActualExpen-diture

R'000

17,29214,867

-

49

---

-

-1,544

-

-504

---

34,256

2008/09 2007/08

Programme 7: Auxiliary & Associated Services




Total


R'000

-10,162

-

-

-

2

-

---

-----

10,164

Shifting ofFunds

R'000

---

-

-

-

-

---

-----

-

Virement

R'000

-(7,780)

-

-

-

54,814

-

---

-----

47,034

FinalAppro-priation

R'000

-2,382

-

-

-

54,816

-

---

-----

57,198

Variance

R'000

---

-

-

2

-

---

-----

2


appro-priation

%

-100.0%

-

-

-

100.0%

-

---

-----

100.0%

FinalAppro-priation

R'000

-8,524

-

-

-

2

-

---

-3,067

---

11,593

Actualexpen-diture

R'000

-3,274

-

-

-

-

-

---

-2,982

---

6,256

ActualExpen-diture

R'000

-2,382

-

-

-

54,814

-

---

-----

57,196

2008/09 2007/08

1 APRIL 2008 - 31 MARCH 2009 75

1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in note 8 (Transfers and subsidies) and Annexure 1 (A-F) to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on financial transactions in assets and liabilities

Detail of these transactions per programme can be viewed in note 7 and 2 (Financial transactions in assets and liabilities) to the AnnualFinancial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

vote 27

Notes to the Appropriation Statementfor the year ended 31 March 2009

Variance as a % ofFinal Appropriation

%

-0,2%0,1%0,1%

-2%

-

VarianceR’000

12616978

2,6331,174

5782

Actual ExpenditureR’000

453,31671,875

116,3063,122,1482,799,539

34,25657,196

Final AppropriationR’000

453,44272,044

116,3843,124,7812,800,713

34,83457,198

4.1 Per Programme

AdministrationSurvey and MappingCadastral SurveysRestitutionLand ReformSpatial Planning and InformationAuxiliary and Associated Services

Variance as a % ofFinal Appropriation

%

0,4%0,2%

14,3%-

45,8%--

100%0,1%

25,7%0,1%

-0,3%

--

-

VarianceR’000

2,1751,096

1(2,361)

222-

11

5363,138

-133

--

16

Actual ExpenditureR’000

610,553631,882

62,361

2657,306

-

-1,1241,546

3,833,330

-41,624

--

1,474,878

Final AppropriationR’000

612,728632,978

7-

4857,308

-

11,1252,082

3,836,468

-41,757

--

1,474,894

4.2 Per Economic classification

Current paymentCompensation of employeesGoods & servicesInterest & rent on landFinancial transactions in assets & liabilities

Transfers & subsidies to:Provinces & municipalitiesDepartmental agencies & accountsUniversities & technikonsForeign governments & internationalorganisations Public corporations & private enterprisesNon-profit institutionsHouseholds

Payment for capital assetsBuildings & other fixed structuresMachinery & equipmentBiological or cultivated assetsSoftware & other intangible assetsLand & subsoil assets


vote 27

Statement of Financial Performancefor the year ended 31 March 2009

Note

123

45673

8

9912

15163

2008/09R'000

6,659,39664,170

-

6,723,566

610,553631,883

62,3612,635

1,247,438

3,938,704

1,471,606--

1,471,606

6,657,748

65,818

4,76064,170(3,112)

65,818

2007/08R'000

5,928,269176,380

1,885

6,106,534

476,092668,388

-3,832

351,148,347

3,832,849

907,9038,433

-916,336

5,897,532

209,002

30,772176,380

1,850

209,002

REVENUEAnnual appropriationDepartmental revenueAid assistance

TOTAL REVENUE

EXPENDITURECurrent expenditureCompensation of employeesGoods and servicesInterest and rent on landFinancial transactions in assets and liabilitiesAid assistanceTotal current expenditure

Transfers and subsidies

Expenditure for capital assetsTangible capital assetsSoftware and other intangible assetsUnauthorised expenditure approved without fundingTotal expenditure for capital assets

TOTAL EXPENDITURE

SURPLUS/(DEFICIT) FOR THE YEARReconciliation of Net Surplus/(Deficit) for the year

Voted FundsDepartmental RevenueAid assistance

SURPLUS/(DEFICIT) FOR THE YEAR

1 APRIL 2008 - 31 MARCH 2009 77

vote 27

Statement of Financial Positionfor the year ended 31 March 2009

ASSETS

Current assetsFruitless and wasteful expenditureCash and cash equivalentsPrepayments and advancesReceivablesAid assistance receivable

Non-current assetsInvestments

TOTAL ASSETS

LIABILITIES

Current liabilitiesVoted funds to be surrendered to the Revenue FundDepartmental revenue to be surrendered to the Revenue FundPayablesAid assistance unutilised

TOTAL LIABILITIES

NET ASSETS

Represented by:Capitalisation reserveRecoverable revenue

TOTAL

Note

101112133

14

1516173

2008/09R'000

86,589596

59,8905,298

19,5431,262

16,11216,112

102,701

83,2074,7602,623

75,824-

83,207

19,494

16,1123,382

19,494

2007/08R'000

105,859596

87,3682,134

15,761-

16,11216,112

121,971

104,26730,7721,949

69,6961,850

104,267

17,704

16,1121,592

17,704


vote 27

Statement of Changes in Net Assetsfor the year ended 31 March 2009

Note 2008/09R'000

16,11216,112

1,5921,790

(23)(515)

(1,461)3,7893,382

19,494

2007/08R'000

16,11216,112

1,264328

(3,832)3,233

(1,666)2,5931,592

17,704

Capitalisation Reserves

Opening balanceClosing balance

Recoverable revenueOpening balanceTransfers:Irrecoverable amounts written off

Debts revisedDebts recovered (included in departmental revenue)Debts raised

Closing balance

TOTAL

1 APRIL 2008 - 31 MARCH 2009 79

vote 27

Cash Flow Statementfor the year ended 31 March 2009

Note

123

18

112.3

19

2008/09R'000

6,722,6036,659,396

63,207-

(818)(94,268)

(1,247,438)(3,938,704)

1,441,375

(1,471,606)963

(1,470,643)

-1,790

-1,790

(27,478)

87,368

59,890

2007/08R’000

5,984,8525,928,269

54,6981,885

(3,894)(181,303)

(1,148,347)(3,832,849)

818,459

(916,336)2,468

(913,868)

119,214328

-119,542

24,133

63,235

87,368

CASH FLOWS FROM OPERATING ACTIVITIESReceipts

Annual appropriated funds receivedDepartmental revenue receivedLocal and foreign aid assistance received

Net increase/(decrease) in working capitalSurrendered to Revenue FundCurrent paymentsTransfers and subsidies paidNet cash flow available from operating activities

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assetsProceeds from sale of capital assets

Net cash flows from investing activities

CASH FLOWS FROM FINANCING ACTIVITIESDistribution/dividend receivedIncrease/(decrease) in net assetsIncrease/(decrease) in non-current payables

Net cash flows from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at end of period

1. Annual Appropriation

1.1 Annual AppropriationIncluded are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Votedfunds) and Provincial Departments :

Programme 1Programme 2Programme 3Programme 4Programme 5Programme 6Programme 7Total

2. Departmental revenue

Sales of goods and services other than capital assetsInterest, dividends and rent on landSales of capital assetsFinancial transactions in assets and liabilitiesTransfer received Total revenue collectedDepartmental revenue collected

2.1 Sales of goods and services other than capital assets

Sales of goods and services produced by the departmentSales by market establishmentAdministrative feesOther salesSales of scrap, waste and other used current goodsTotal

2.2 Interest, dividends and rent on land

Interest receivedDividend receivedRent on land and buildingsTotal

2.3 Sale of capital assets

Land and subsoil assetsTotal

2.4 Financial transactions in assets and liabilities

ReceivablesStale cheques written backOther Receipts including Recoverable RevenueTotal

2.5 Transfers received

Foreign governmentsTotal

Revenue in transit during the previous year was R1,949 million and in the current year is R2,623 million.


vote 27

Notes to the Annual Financial Statementsfor the year ended 31 March 2009

FinalAppro-

priation

R’000453,44272,044

116,3843,124,7812,800,713

34,83457,198

6,659,396

Actual FundsReceived

R’000455,89982,344

118,6433,071,7052,884,055

36,58610,164

6,659,396

Note

2.12.22.32.42.5

Note2

Note2

Note2

Note2

Note2

Funds notrequested/

not received

R’000(2,457)

(10,300)(2,259)53,076

(83,342)(1,752)47,034

-

2008/09R’000

20,97033,438

9638,750

4964,17064,170

2008/09R’000

20,9411,211

17,1152,615

2920,970

2008/09R’000

20,407-

13,03133,438

2008/09R’000

963963

2008/09R’000

5775

8,1688,750

2008/09R’000

4949

Appro-priation

Received2007/08

R’000426,55498,085

137,9373,638,6111,593,471

22,01811,593

5,928,269

2007/08R’000

23,200145,461

2,4685,210

41176,380176,380

2007/08R’000

23,147-

17,7555,392

5323,200

2007/08R’000

14,849119,21411,398

145,461

2007/08R’0002,4682,468

2007/08R’000

346-

4,8645,210

2007/08R’000

4141

1 APRIL 2008 - 31 MARCH 2009 81

3. Aid assistance

3.1 Aid Assistance received in cash from RDP

Opening BalanceRevenue ExpenditureCurrentCapitalClosing Balance

3.2 Total AssistanceOpening BalanceRevenue ExpenditureCurrentCapitalClosing Balance

Analysis of balanceAid assistance unutilisedAid assistance receivableClosing balance

4. Compensation of employees

4.1 Salaries and Wages

Basic salaryPerformance awardService BasedCompensative/circumstantialPeriodic paymentsOther non-pensionable allowancesTotal

4.2 Social contributions

4.2.1 Employer contributions

PensionMedicalBargaining councilTotal

Total compensation of employees

Average number of employees

5. Goods and services

Administrative feesAdvertisingAssets less then R5,000Bursaries (employees)CateringCommunicationComputer servicesConsultants, contractors and agency/outsourced services EntertainmentAudit cost – externalInventoryMaintenance, repairs and running costsOperating leases Owned and leasehold property expenditureTransport provided as part of the departmental activitiesTravel and subsistenceVenues and facilitiesTraining and staff developmentOther operating expenditureTotal

Note3

Note4

Note4

Note

5.1

5.25.3

5.45.5

5.6

5.7

5.8

2008/09R’0001,850

-(3,112)(2,635)

(477)(1,262)

2008/09R’0001,850

-(3,112)(2,635)

(477)(1,262)

2008/09R’000

-1,2621,262

2008/09R’000

426,2884,7702,325

13,7472,280

81,207530,617

2008/09R’000

53,88425,963

8979,936

610,553

3,253

2008/09R’000

38,02415,3048,3211,4664,519

35,87765,960

172,31227

7,73621,819

-46,98431,1892,034

133,68528,06610,1838,377

631,883

2007/08R’000

-1,885

(35)(35)

-1,850

2007/08R’000

-1,885

(35)(35)

-1,850

2007/08R’000

1,850-

1,850

2007/08R’000

318,6216,0281,644

12,85011,06371,436

421,642

2007/08R’000

36,38217,994

7454,450

476,092

2,805

2007/08R’000

28,83413,6849,7472,0713,204

33,37769,085

179,05916

6,55916,42313,53644,09512,6732,383

132,79826,4287,780

66,636668,388


5.1 Assets less than R5,000

Tangible assetsBiological/cultivated assetsMachinery and equipmentIntangible assetsTotal

5.2 Computer services

SITA computer servicesExternal computer service providersTotal

5.3 Consultants, contractors and agency/outsourced services

Business and advisory servicesInfrastructure and planningLegal costsContractorAgency and support/outsourced servicesTotal

5.4 Audit cost - external

Regulatory auditsOther auditsTotal

5.5 Inventory

Learning and teaching support materialFood and food suppliesFuel, oil and gasOther consumable materialsMaintenance materialStationery and printingMedical suppliesTotal

5.6 Owned and leasehold property expenditure

Municipal servicesOtherTotal

5.7 Travel and subsistence

Local ForeignTotal

5.8 Other operating expenditure

Professional bodies, membership and subscription feesResettlement costsOtherTotal

6. Interest and rent on land

Interest paidTotal

Note5

Note5

Note5

Note5

Note5

Note5

Note5

Note5

2008/09R’0008,321

5437,778

-8,321

2008/09R’000

22,70643,25465,960

2008/09R’000

74,76315,92720,21113,25348,158

172,312

2008/09R’0007,736

-7,736

2008/09R’000

35349830

1,340416

18,910272

21,819

2008/09R’0007,376

28,81331,189

2008/09R’000

132,1781,507

133,685

2008/09R’000

1995,0683,1108,377

2008/09R’000

66

2007/08R’0009,6543,3476,307

939,747

2007/08R’000

19,99449,09169,085

2007/08R’000

81,39418,62921,44126,36831,227

179,059

2007/08R’0004,8491,7106,559

2007/08R’000

13552926

713200

14,73288

16,423

2007/08R’000

12,673-

12,673

2007/08R’000

132,259539

132,798

2007/08R’000

7722,923

62,94166,636

2007/08R’000

--

1 APRIL 2008 - 31 MARCH 2009 83

7. Financial transactions in assets and liabilities

Other material losses written offDebts written offTotal

7.1 Other material losses written off

Nature of lossesOther MaterialTotal

7.2 Debts written off

Nature of debts written offState GuaranteeStudy DebtSupplier DeptSalary DebtTotal

8. Transfers and subsidies

Provinces and municipalitiesDepartmental agencies and accountsUniversities and technikonsForeign governments and international organisationsPublic corporations and private enterprisesNon-profit institutionsHouseholdsTotal

9. Expenditure for capital assets

Tangible assetsBuildings and other fixed structuresMachinery and equipmentLand and subsoil assets Biological or cultivated assets

Software and other intangible assetsOther intangibles

Total

9.1 Analysis of funds utilised to acquire capital assets – 2008/09

Tangible assetsMachinery and equipmentLand and subsoil assets

Total

9.2 Analysis of funds utilised to acquire capital assets – 2007/08

Total assets acquired

Note

7.17.2

Note7

Note7

Note

Annex 1AAnnex 1B

Annex 1DAnnex 1CAnnex 1EAnnex 1F

Note

29.131.1

30.1

Voted funds

R’0001,471,129

50,9401,420,189

1,471,129

Voted funds

R’000916 336

2008/09R’0002,338

232,361

2008/09R’000

2,3382,338

2008/09R’000

-2-

2123

2008/09R’000

2657,306

-1,124

-1,546

3,878,7023,938,704

2008/09R’000

1,471,606-

51,4171,420,189

-

--

1,471,606

Aidassistance

R’000477477

-

477

Aidassistance

R’000-

2007/08R’0003,723

1093,832

2007/08R’000

3,7233,723

2007/08R’000

36223021

109

2007/08R’000

772,351

-1,026

50-

3,829,3453,832,849

2007/08R’000

907,9032,442

63,137832,833

9,491

8,4338,433

916,336

Total

R’0001,471,606

51,4171,420,189

1,471,606

Total

R’000916 336


10. Fruitless and wasteful expenditure

10.1 Reconciliation of fruitless and wasteful expenditure

Opening balanceFruitless and wasteful expenditure – current yearTransfers and subsidiesAmounts condonedCurrent CapitalTransfers and subsidiesTransfer to receivables for recoveryFruitless and wasteful expenditure awaiting condonement

Analysis of awaiting condonement per economic classificationCurrentTotal

11. Cash and cash equivalents

Consolidated Paymaster General AccountCash receiptsDisbursementsCash on handTotal

12. Prepayments and advances

Travel and subsistenceAdvances paid to other entitiesTotal

13. Receivables

Claims recoverable

Recoverable expenditureStaff debtOther debtorsTotal

Claims recoverable

National departmentsProvincial departmentsPublic entitiesTotal

13.2 Recoverable expenditure (disallowance accounts)

DescriptionsDisallowances dishonoured chequeSal: Disallowances account ACDisallowances: MiscellaneousDisallowances: Damaged GG VehicleTotal

13.3 Staff debt

Salary DebtBursary DebtSubsidised Motor SchemeTelephone DebtCell Phone DebtMisconductGG AccidentOther DebtTotal

One to threeyears

3,470238

1,3135,021

Less than oneyear

1,824700

3,4435,967

Note

13.1Anx 413.213.313.4

Older thanthree years

993

6,61637

9098,555

Note13

Note13

Note13

2008/09R’000

596------

-

--

2008/09R’000

59,714-

43133

59,890

2008/09R’000

275,2715,298

2008/09R’000Total

993

11,910975

5,66519,543

2008/09R’000

270723

-993

2008/09R’000

21185

7,7453,959

11,910

2008/09R’000

41288183187

-171103

2975

2007/08R’000

473123123

----

596

596596

2007/08R’000

84,6542,583

22109

87,368

2007/08R’000

432,0912,134

2007/08R’000Total

253

12,282631

2,59515,761

2007/08R’000

253--

253

2007/08R’000

1316

9,7702,195

12,282

2007/08R’000

2118781695

164101

3631

1 APRIL 2008 - 31 MARCH 2009 85

13.4 Other debtors

SG DebtorsSupplier DebtE – Staff Salary debtE – Staff Bursary Ex – Staff state Guarantees – HousingEx – Staff Telephone DebtEx – Staff Tax DebtEx – Staff Subsidised Motor Vehicle DebtEx – Staff Cell Phone DebtEx – Staff GG accidentsEx – Staff MisconductOther DebtorsClearing AccountsCriminal debtSal Tax Debt : CATransport suspenseSal Tax Debt : CLTotal

14. Investments

Non-CurrentShares and other equityInala Farms (Pty) LtdTotal

Total non-current

Analysis of non current investmentsOpening balanceClosing balance

15. Voted funds to be surrendered to the Revenue Fund

Opening balanceTransfer from statement of financial performancePaid during the yearClosing balance

16. Departmental revenue to be surrendered to the Revenue Fund

Opening balanceTransfer from Statement of Financial PerformancePaid during the yearClosing balance

17. Payables – current

DescriptionClearing accountsOther payablesTotal

17.1 Clearing accounts

DescriptionRestitution awards not claimed Total

17.2 Other payables

DescriptionSalaries : Pension Fund : CLSalaries : Medical : CLSalaries : Housing : CLSalaries : OverpaymentTransport Suspense AccountsSalaries : Tax DebtTotal

Note13

Note

Note

17.117.2

Note17

Note17

2008/09R’000

2309

1,1022,193

39781917537728

219---

1,141460

5,665

2008/09R’000

16,11216,112

16,112

16,11216,112

2008/09R’000

30,7724,760

(30,772)4,760

2008/09R’0001,949

64,170(63,496)

2,623

2008/09R’000

75,146678

75,824

2008/09R’000

75,14675,146

2008/09R’000

6259-

602-

678

2007/08R’000

2929

61573249386

2652682532

419131101

--

2,595

2007/08R’000

16,11216,112

16,112

16,11216,112

2007/08R’0004,645

30,772(4,645)30,772

2007/08R’0002,227

176,380(176,658)

1,949

2007/08R’000

69,379317

69,696

2007/08R’000

69,37969,379

2007/08R’000

18

291

20771

317


18. Net cash flow available from operating activities

Net surplus/(deficit) as per Statement of Financial PerformanceAdd back non cash/cash movements not deemed operating activities(Increase)/decrease in receivables – current(Increase)/decrease in prepayments and advances(Increase)/decrease in other current assetsIncrease/(decrease) in payables – currentProceeds from sale of capital assetsExpenditure on capital assetsSurrenders to Revenue FundOther non-cash itemsNet cash flow generated by operating activities

19. Reconciliation of cash and cash equivalents for cash flow purposes

Consolidated Paymaster General accountCash receiptsDisbursementsCash on handTotal

2008/09R’000

65,8181,420,930

(3,782)(3,164)

-6,128(963)

1,471,606(94,268)

-1,441,748

2008/09R’000

59,714-

43133

59,890

2007/08R’000

209,002609,457

281,373(123)

(5,172)(2,468)

916,336(181,303)(119,214)

818,459

2007/08R’000

84,6542,583

22109

87,368

1 APRIL 2008 - 31 MARCH 2009 87

20. Contingent liabilities

Liable to NatureMotor vehicle guarantees EmployeesHousing loan guarantees EmployeesClaims against the departmentOther departments (interdepartmental unconfirmed balances) Total

21. Commitments

Current expenditureApproved and contractedApproved but not yet contracted

Capital expenditureApproved and contractedApproved but not yet contracted

Total Commitments

The closing balance as at 31 March 2008 for the Balance of Grant (BOG) commitments have been restated, by R61,6 million fromR443,9 million to R382,4 million as a result of a reconciliation during 2008/09 financial year.

22. Accruals

Listed by economic classification

Compensation of employeesGoods and servicesTransfers and subsidiesMachinery and equipmentLand and subsoil assetsOtherTotal

Listed by programme levelAdministrationSurveys & MappingCadastral ServicesRestitutionLand ReformSpatial Planning & informationTotal

Confirmed balances with other departmentsTotal

The R19,9 million paid after 30 days results in a non compliance; this is due to the augmentation of R54,8 million transferred to the DeedsTrading Account. Refer to the Accounting officers report and Treasury Regulation 19

23. Employee benefits

Leave entitlementThirteenth chequePerformance awardsCapped leave commitmentsTotal

30 Days-

12,025-

193--

12,218

Note

Annex 3AAnnex 3AAnnex 3BAnnex 5

30 Days +-

17,399-

2,585--

19,984

Note Annex 5

2008/09R’000

133291

394,481147

395,502

2008/09R’000

188,694663,941852,635

1,1677,955,9817,957,148

8,809,783

2008/09R’000

Total-

29,424-

2,778--

32,202

2008/09R’000

10,736649

1,0924,289

12,2283,208

32,202

2008/09R’000

16,16616,166

2008/09R’000

20,69718,0667,248

24,20070,211

2007/08R’000

204641

311,044626

312,515

2007/08R’000

116,516394,873511,389

4,5305,674,3225,678,852

6,190,241

2007/08R’000

Total5

31,993-

815136,561

188169,562

2007/08R’000

19,46654

4127,240

142,29793

169,562

2007/08R’0001,2471,247

2007/08R’000

17,29612,3787,141

21,61858,433

vote 27

Disclosure Notes to the Annual Financial Statementsfor the year ended 31 March 2009

These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the AnnualFinancial Statements.


24. Lease commitmentsOperating leases expenditure2008/09

Not later than 1 yearLater than 1 year and not later than 5 yearsLater than five yearsTotal lease commitments

2007/08

Not later than 1 yearLater than 1 year and not later than 5 yearsTotal lease commitments

Finance leases expenditure**2008/09

Not later than 1 yearLater than 1 year and not later than 5 yearsLater than five yearsTotal lease commitmentsLess: Finance Cost

Total present value of lease liabilities

2007/08

Not later than 1 yearLater than 1 year and not later than 5 yearsTotal lease commitmentsTotal present value of lease liabilities

25. Receivables for departmental revenue

Interest, dividends and rent on landTotal

25.1 Analysis of receivables for departmental revenue

Opening balanceLess: Amounts receivedAdd: Amounts recognisedLess: Amounts written-off/reversed as irrecoverableClosing balance

Opening balance has been restated for interest receivable from conveyancers, state land leases both DLA and PLAS, and SITA credit note.Receivable on rent on land as at 31 March 2009 is R50,878 million, POA is R5,193 million, Interest receivable from conveyancers underRestitution is R30,638 million and SITA credit note is R1,211 million as well as R4,604 million owed to the department for fraud caseW Ruiters

26. Irregular expenditure

26.1 Reconciliation of irregular expenditure

Opening balanceAdd irregular expenditure-relating to prior year Add irregular expenditure-relating to current yearLess: Amounts condonedCurrent expenditureExpenditure for capital assetsIrregular expenditure awaiting condonationAnalysis of awaiting condonation per age classificationCurrent yearPrior yearsTotal

R64,573 million relates to all assets acquired through Pro-active Land Acquisition Strategy from 2006 to mid 2008, the R10,384 million isfor 2008/09 before the amendment of Act 126 of 1993 was approved .

Land

----

Land

---

Land

-----

-

Land

----

Buildings andother fixedstructures

14,019115,280

2,776132,075


23,37046,74070,110


-----

-


----

Machineryand

equipment----

Machineryand

equipment9113

104

Machineryand

equipment11,2506,377

-17,627(1,247)

16,380

Machineryand

equipment2,7212,7725,4935,493

2008/09R’000

92,52492,524

2008/09R’000

64,77732,54460,291

-92,524

2008/09R’000

10,04864,57310,384

(10,048)(10,048)

-74,957

10,38464,57374,957

Total

14,019115,280

2,776132,075

Total

23,46146,75370,214

Total

11,2506,377

-17,627(1,247)

16,380

Total

2,7212,7725,4935,493

2007/08R’000

64,77764,777

2007/08R’000

34,103--

(24,055)21,8032,252

10,048

-10,04810,048

1 APRIL 2008 - 31 MARCH 2009 89

26.2 Details of irregular expenditure condoned

Incident Condoned by (condoning authority)Tender process not followed National TreasuryMismanagement of transferred funds National Treasury

27. Fruitless and wasteful expenditure

27.1 Reconciliation of fruitless and wasteful expenditure

Opening balanceAdd fruitless and wasteful expenditure-relating to prior yearAdd fruitless and wasteful expenditure-relating to current yearLess amount condonedLess: Amounts transferred to receivables for recoveryFruitless and wasteful expenditure awaiting condonementAnalysis of awaiting condonement per economic Current ExpenditureCapital ExpenditureTransfers and subsidiesTotal

Analysis of Current Years Fruitless and Wasteful expenditure

Incident Disciplinary steps taken/criminal proceedings

Purchase of the Gorah Farm market value Responsible officials have already been suspendedPayments made were not in accordance with the intended purpose - Responsible officials have already been suspendedCornucopia project Total

The Department envisage that an amount of R4,863,851.49 will be Fruitless and Wasteful Expenditure.An independent auditing firm was requested by the Department to launch an investigation regarding two projects (Gorah Farm andCornucopia) that were purchased through PLAS. The investigation is still ongoing but a recommendation was done by the independentaudit firm that an amount of R3,650,000 for Gorah Farm and R1,213,851.49 for Cornucopia should be declared in the financialstatements as Fruitless and Wasteful Expenditure.

28. Related party transactions

Ministerial Portfolio Department Schedule Public Entity

Agriculture & Land Affairs Land Affairs 3A Ingonyama Trust Board

3B Inala Farms (Pty) Ltd.

Agriculture 2 Land & Agricultural Bank of South Africa

3A Agricultural Research Council

3A National Agricultural Marketing Council

3A Perishable Products Export Control Board (PTY)

3B Ncera Farms Biological Products

3B Onderstepoort

29. Key management personnel

Political office bearers (provide detail below)Officials:Level 15 to 16Level 14 (incl CFO if at a lower level)Total

30. Provisions

ProvisionsImpairment of investments Irrecoverable other Advance to MunicipalitiesTotal

No. ofIndividuals

1321

2008/09R’0006,0484,000

10,048

2008/09R’000

596596

4,864--

5,460

4734,864

1235,460

2008/09R’000

8,19911,95920,158

2008/09R’000

16,11242,3671,119

59,598

2007/08R’000

473123

---

596

473-

123596

2008/09R’000

3,6501,214

4,864

2007/08R’000

4,82611,94716,773

2007/08R’000

16,11216,9942,091

35,197


30. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2009

MACHINERY AND EQUIPMENTTransport assetsComputer equipmentFurniture and office equipmentOther machinery and equipment

BIOLOGY ASSETSBiology assets

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

30.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2009


TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

30.2 Movement for 2007/08

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2008


BIOLOGY ASSETSBiology assets

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

30.3 Minor assets

MINOR ASSETS OF THE DEPARTMENT FOR THE YEAR ENDED 31 MARCH 2009

Minor assets

Number of minor assets

Curr YearAdjustmentsto prior year

balancesR’000

14,283(170)

(5)(23)

14,481

7,9237,923

22,206

Non-cash

R’000

-----

-

Openingbalance

R’000

160,93912,416

121,50414,79412,225

3,0633,063

164,002

HeritageassetsR’000

--

Heritageassets

--

Openingbalance

R’000

220,50916,824

147,32617,46238,897

12,55412,554

233,063

Cash

R’000

51,417838

28,20912,06510,305

51,417

IntangibleassetsR’000

66

Intangibleassets

44

Additions

R’000

51,417838

28,20912,06510,305

--

51,417

(Capital Workin Progress

current costsand finance

leasepayments)

R’000

-----

-

Additions

R’000

63,1374,408

28,7623,295

26,672

9,4919,491

72,628

Machinery &equipment

R’00028,84228,842

Machinery &equipment

53 27953 279

Disposals

R’000

5,387602

2,849422

1,514

2,2662,266

7,653

Receivedcurrent, not

paid (Paidcurrent year,

receivedprior year)

R’000

-----

-

Disposals

R’000

3,567-

2,940627

-

--

3,567

BiologicalassetsR’000

--

Biologicalassets

--

ClosingBalance

R’000

280,82216,890

172,68129,08262,169

18,21118,211

299,033

Total

R’000

51,417838

28,20912,06510,305

51,417

Closingbalance

R’000

220,50916,824

147,32617,46238,897

12,55412,554

233,063

Total

R’00028,84228,842

Total

53 27953 279

1 APRIL 2008 - 31 MARCH 2009 91

31. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2009

COMPUTER SOFTWARETOTAL INTANGIBLE ASSETS


MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2008

COMPUTER SOFTWARETOTAL

32. Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2009

BUILDINGS AND OTHER FIXED STRUCTURESOther fixed structuresLAND AND SUBSOIL ASSETSLand TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

32.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2009

LAND AND SUBSOIL ASSETSLandTOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS


MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2008

BUILDINGS AND OTHER FIXED STRUCTURESOther fixed structuresLAND AND SUBSOIL ASSETSLandTOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

32.3 Immovable assets valued at R1

IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER FOR 31 MARCH 2009

R1 Immovable assets TOTAL

Current YearAdjustmentsto prior year

balancesR’000

1,9751,975

Openingbalance

R’000

39,31339,313

Current YearAdjustmentsto prior year

balancesR’000

(2,442)-

40,11837,676

Non-cash

R’000

--

Openingbalance

R’000

-

322,518322,518

Heritageassets

R

--

Openingbalance

R’000

47,74647,746

Openingbalance

R’000

2,442

1,155,3511,157,793

Cash

R’000

1,420,1881,420,188

Buildingsand other

fixedstructures

R

--

Additions

R’000

--

Additions

R’000

8,4338,433

Additions

R’000

--

1,420,1881,420,188

(Capital Workin Progress

current costsand finance

leasepayments)

R’000

--

Additions

R’000

2,442

832,833835,275

Land andsubsoil assets

R

35,725 35,725

Disposals

R’000

--

Disposals

R’000

--

Disposals

R’000

----

Receivedcurrent, not

paid (Paidcurrent year,

receivedprior year)

R’000

--

Disposals

R’000

-

--

Investmentproperty

R

--

ClosingBalance

R’000

49,72149,721

Closingbalance

R’000

47,74647,746

ClosingBalance

R’000

--

2,615,6572,615,657

Total

R’000

1,420,1881,420,188

ClosingBalance

R’000

2,442

1,155,3511,157,793

Total

R

35,725 35,725


vote 27

Annexures to the Annual Financial Statementsfor the year ended 31 March 2009

Annexure 1AStatement of Conditional Grants paid to Provinces

NAME OF PRO-VINCE/ GRANT

MunicipalRates & taxesLevies VehicleLicences

TOTAL

Division ofRevenue

Act

R’000

-

-

-

Roll Overs

R’000

-

-

-

Adjust-ments

R'000

-

-

-

Total -Available

R'000

-

-

-

ActualTransfer

R'000

-

26

26

% of Avail-able funds

Trans-ferred

%

-

-

-

Amountreceived

by depart-ment

R'000

-

-

-

Amountspent by

depart-ment

R'000

-

-

-

% ofavailable

fundsspent by

depart-ment

%

-

-

-

Division ofRevenue

Act

R’000

1

76

77

GRANT ALLOCATION TRANSFER SPENT 2007/08

Annexure 1BStatement of Transfers to Departmental Agencies and Accounts

DEPARTMENT/ AGENCY/ ACCOUNT

Ingonyama Trust BoardDeeds Trading Account

TOTAL

AdjustedAppro-

priationAct

R'000

--

-

Roll Overs

R'000

--

-

Adjust-ments

R'000

--

-

TotalAvailable

R'000

--

-

ActualTransfer

R'000

2,49254,814

57,306

% ofAvailable

fundsTrans-ferred

%

--

-

Appro-priation

Act

R'000

2,351-

2,351

TRANSFER ALLOCATION TRANSFER 2007/08

Annexure 1CStatement of Transfers/Subsidies to Public Corporations and Private Enterprises

NAME OF PUBLICCORPORATION/ PRIVATEENTERPRISE

Private EnterprisesNon life insurance premiums

TOTAL

AdjustedAppro-

priationAct

R'000

-

-

Roll Overs

R'000

-

-

Adjust-ments

R'000

-

-

TotalAvailable

R'000

-

-

ActualTransfer

R'000

-

-

% ofAvailable

fundsTrans-ferred

%

-

-

Capital

R'000

-

-

Current

R'000

-

-

Appro-priation

Act

R'000

50

50

TRANSFER ALLOCATION EXPENDITURE 2007/08

Annexure 1DStatement of Transfers to Foreign Government and International Organisations

FOREIGN GOVERNMENT/ INTERNATIONALORGANISATION

Subscriptions : UNIVFOD

TOTAL

AdjustedAppro-

priationAct

R'000

-

-

Roll overs

R'000

-

-

Adjust-ments

R'000

-

-

TotalAvailable

R'000

-

-

ActualTransfer

R'000

1,124

1,124

% ofAvailable

fundsTrans-ferred

%

-

-

Appro-priation

Act

R'000

1,026

1,026

TRANSFER ALLOCATION EXPENDITURE 2007/08

1 APRIL 2008 - 31 MARCH 2009 93

Annexure 1EStatement of Transfers to Non-Profit Institutions

NON-PROFIT INSTITUTIONS

TransfersSouth African Council for PlannersContribution for HIV and AIDS

TOTAL

AdjustedAppro-

priationAct

R'000

--

-

Roll overs

R'000

--

-

Adjust-ments

R'000

--

-

TotalAvailable

R'000

--

-

ActualTransfer

R'000

1,5442

1,546

% ofAvailable

fundsTrans-ferred

%

--

-

Appro-priation

Act

R'000

--

-

EXPENDITURETRANSFER ALLOCATION 2007/08

Annexure 1FStatement of Transfers to Households

HOUSEHOLDS

Restitution Grants (Beneficiaries)Land Reform Grants (Beneficiaries)Social Benefits Bursaries (Non Employees)Households

TOTAL

AdjustedAppro-

priationAct

R'000

----

-

Roll Overs

R'000

----

-

Adjust-ments

R'000

----

-

TotalAvailable

R'000

----

-

ActualTransfer

R'000

2,783,6651,080,507

1,55712,973

3,878,702

% ofAvailable

fundsTrans-ferred

%

----

-

Appro-priation

Act

R'000

3,333,531483,087

7,4004,927

3,829,345

EXPENDITURETRANSFER ALLOCATION 2007/08

Annexure 2AStatement of Investments in and Amounts owing by/to Entities as at 31 March 2009

Name of PublicEntity

Controlled entitiesInala Farms (Pty)Ltd

Total

Nature of business

Land ReformProject

2008/09

-

-

2007/08

16,112

16,112

2008/09

-

-

2007/08

-

-

2008/09

-

-

2007/08

-

-

2008/09

-

-

2007/08

-

-

Net Asset value ofInvestment

R’000

Cost of investment

R’000

Amounts owing toEntitiesR'000

Amounts owing byEntitiesR'000


Annexure 3AStatement of Financial Guarantees issued as at 31 March 2008 – Local

Guarantorinstitution

STANNIC

Subtotal

ABSA BOE (Ltd)First Rand BankFirst Rand Bank FNBSMpumalangaNedbankNedbankincorporated BOEOld MutualStandard BankPeoples Bank LTDFBC

Subtotal

Total

Guaranteein respectof

Motorvehicles

HousingHousing HousingHousingHousingHousing

HousingHousingHousing

Housing

Originalguaranteed

capitalamount

R’000

275

275

------

---

-

-

275

Openingbalance

1 April 2008R’000

204

204

75-

3567

-15

-10

218

-

420

624

Guaranteesdraw

downsduring the

yearR’000

-

-

2516311711

-

118

71

44

234

234

Guaranteesrepay-ments/

cancelled/reduced/released

during theyear

R’000

71

71

17-

50171115

1111

187

44

263

434

Revalua-tionsR’000

-

-

------

---

-

-

-

Closingbalance

31 March2009

R’000

133

133

83161667

--

-7-

102

291

424

Guaranteedinterest foryear ended

31 March2009

R’000

-

-

------

---

-

-

-

Realisedlosses not

recoverablei.e. claims

paid out’000

-

-

------

---

-

-

-

1 APRIL 2008 - 31 MARCH 2009 95

Annexure 3BStatement of Contingent Liabilities as at 31 March 2009

Nature of Liability

Claims against the departmentMulaudzi & Associates – Arbitration matter : Mulaudzi & Associates – Arbitration matter :Mulaudzi & Associates – Arbitration matter :Evelyn Valley Fire ClaimKubisie Fire ClaimCJ Rance Fire Claim 4113/04/Z12, 3472/02/Z33 and3038/05/Z62A MandoloPhela Ophedise Evangelical Lutheran Church Of SARodendaal Pty LtdPrinshoek BoerderyChloe Boedery CCClarke & OthersUniverse Ranch V Regional Land Claims KZNMacassar Land Claims committeeY SolomonW BoothDistrict Six Cape TownA Florence Adam,Moosa,EbrahamMM MeyerMorapedi Howard SeoueShamile CPACNM DlaminiRF CrowwterJSS BallotGoronyaneParsonsDD JacobsAG MacdonaldG JoubertF J Van NierkerkLV MaySS FreightJJ BothWolfaardtSilverline investmentAJ MeintjiesJB SpaumerJ MeintjiesHorseshoe sugar estateFarjasKwabhekithungaS H MjwaraCrown Buildings servicesM SerobeM LethobaDwarsloop Land Restitution ProjectMokhathi ProjectsOutstanding Cases with State Attorneys:KZN

Total

OpeningBalance

01/04/2008

R’000

9444

8764,0006,886

16,783-

1,16446,98718,500

1471,3444,702

542-----------------------------------

7,852

235,759

Liabilitiesincurred

during theyear

R’000

-----

-183

-------

900300600380400

1,50048,000

6598

1095,0001,0003,500

176,000

11,4426,5084,464

47,0002,000

74412614

346423800258

2,782537

12316040

7639-

158,722

Liabilitiespaid/

cancelled/reduced

during theyear

R’000

-----

---------------------------------------------

-

Liabilitiesrecoverable

(Providedetails

hereunder)

R’000

-----

---------------------------------------------

-

ClosingBalance

31/03/2009

R’000

9444

8764,0006,886

16,783 183

1,16446,98718,500

1471,3444,702

542900300600380400

1,50048,000

6598

1095,0001,0003,500

176,000

11,4426,5084,464

47,0002,000

74412614

346423800258

2,782537

12316040

7639

7,852

394,481


Annexure 4Claims Recoverable

GOVERNMENT ENTITY

DEPARTMENTSAgricultureAgriculture: North WestEnvironmental and TourismKZN: Agriculture and EnvironmentTrade and IndustryJusticeSASSASocial DevelopmentStatistics SAKZN: HousingKZN: TransportProvincial and Local GovernmentNW: Provincial AdministrationAgriculture: Free State 107EC Province 11WC Province 12LP Province 33Provincial PWD 5KZN Provincial 1

Other Government EntitiesDeeds Trading Account

Total

31/03/2009R’000

--------------------

-

-

31/03/2008R’000

--------------------

-

-

31/03/2009R’000

18079

328----

1919747------

310

638

993

31/03/2008R’000

-----1

492212

----

10711123351

253

-

253

31/03/2009R’000

18079

328----

1919747------

310

638

993

31/03/2008R’000

-----1

492212

----

10711123351

253

-

253

Confirmed balanceoutstanding

Unconfirmed balanceoutstanding

Total

Annexure 5Inter-Government Payables

GOVERNMENT ENTITY

DEPARTMENTSCurrentForeign AffairsJusticeSASSAWater Affairs and ForestryCorrectional ServicesEnvironmental Affairs & TourismEC HealthEnvironmental Affairs: KZNKZN TransportPublic WorksEC TreasuryAgricultureNational Intelligence AgencySAPS

Subtotal

Total

31/03/2009R’000

-7,167

-------

6,822-

2,13245

-

16,166

16,166

31/03/2008R’000

-1,157

-------

90----

1,247

1,247

31/03/2009R’000

4------------

143

147

147

31/03/2008R’000

63-8

261181275

38-

367---

626

626

31/03/2009R’000

47,167

-------

6,822-

2,13245

143

16,313

16,313

31/03/2008R’000

631,157

8261181275

3890

367---

1,873

1,873

Confirmed balanceoutstanding

Unconfirmed balanceoutstanding

Total

land affairs

1 APRIL 2008 - 31 MARCH 2009 97

R

part4R E P O R T B YT H E A U D I T O R -G E N E R A LO N T H E D E E D SR E G I S T R A T I O NT R A D I N GA C C O U N T

Report bythe Auditor-General onthe Deeds

RegistrationTrading Account


Report of the Auditor-General to Parliament onthe financial statements and performanceinformation of the Deeds Registration TradingAccount for the year ended 31 March 2009

Report on thefinancial statementsIntroduction1. I have audited the accompanying financial

statements of the Deeds RegistrationTrading Account which comprise thestatement of financial position as at 31March 2009, and the statement offinancial performance, the statement ofchanges in net assets and the cash flowstatement for the year then ended, and asummary of significant accounting policiesand other explanatory notes as set out inpages 100 to 113.

The accounting officer’sresponsibility for thefinancial statements2. The accounting officer is responsible for

the preparation and fair presentation ofthese financial statements in accordancewith the South African Statements ofGenerally Accepted Accounting Practice(SA Statements of GAAP) and in themanner required by the Public Finance

Management Act, 1999 (Act No. 1 of1999) (PFMA) and for such internal controlas the accounting officer determines isnecessary to enable the preparation offinancial statements that are free frommaterial misstatement, whether due tofraud or error.

The Auditor-General’sresponsibility3. As required by section 188 of the

Constitution of the Republic of SouthAfrica, 1996 read with section 4 of thePublic Audit Act, 2004 (Act No. 25 of2004) (PAA), my responsibility is to expressan opinion on these financial statementsbased on my audit.

4. I conducted my audit in accordance withthe International Standards on Auditingread with General Notice 616 of 2008,issued in Government Gazette No. 31057of 15 May 2008. Those standards requirethat I comply with ethical requirementsand plan and perform the audit to obtainreasonable assurance about whether thefinancial statements are free from materialmisstatement.

5. An audit involves performing proceduresto obtain audit evidence about theamounts and disclosures in the financialstatements. The procedures selecteddepend on the auditor’s judgement,including the assessment of the risks ofmaterial misstatement of the financial

land a

ffair

s


statements, whether due to fraud or error. In makingthose risk assessments, the auditor considers internalcontrol relevant to the entity’s preparation and fairpresentation of the financial statements in order todesign audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing anopinion on the effectiveness of the entity’s internalcontrol. An audit also includes evaluating theappropriateness of accounting policies used and thereasonableness of accounting estimates made bymanagement, as well as evaluating the overallpresentation of the financial statements.

6. I believe that the audit evidence I have obtained issufficient and appropriate to provide a basis for myaudit opinion.

Opinion 7. In my opinion the financial statements present fairly, in

all material respects, the financial position of the Deeds

Registration Trading Account as at 31 March 2009 andits financial performance and its cash flows for the yearthen ended, in accordance with SA Statements of GAAPand in the manner required by the PFMA.

Governance framework8. The governance principles that impact the auditor’s

opinion on the financial statements are related to theresponsibilities and practices exercised by the accountingauthority and executive management and are reflectedin the key governance responsibilities addressed below:

Key governance responsibilities9. The PFMA tasks the accounting officer with a number of

responsibilities concerning financial and riskmanagement and internal control. Fundamental toachieving this is the implementation of key governanceresponsibilities, which I have assessed as follows:

No. Matter Y N

Clear trail of supporting documentation that is easily available and provided in a timely manner

1. No significant difficulties were experienced during the audit concerning delays or the availability ofrequested information.

Quality of financial statements and related management information

2. The financial statements were not subject to any material amendments resulting from the audit.

3. The annual report was submitted for consideration prior to the tabling of the auditor’s report.

Timeliness of financial statements and management information

4. The annual financial statements were submitted for auditing as per the legislated deadlinessection 40/55 of the PFMA.

Availability of key officials during audit

5. Key officials were available throughout the audit process.

Development and compliance with risk management, effective internal control and governance practices

6. Audit committee

• The entity had an audit committee in operation throughout the financial year.

• The audit committee operates in accordance with approved, written terms of reference.

• The audit committee substantially fulfilled its responsibilities for the year, as set out insection 77 of the PFMA and Treasury Regulation 3.1.10/27.1.8.

7. Internal audit

• The entity had an internal audit function in operation throughout the financial year.

• The internal audit function operates in terms of an approved internal audit plan.

• The internal audit function substantially fulfilled its responsibilities for the year, as set out inTreasury Regulation 3.2/27.2.

8. There are no significant deficiencies in the design and implementation of internal control in respectof financial and risk management.

�

��

�

�

��

��

�

�

�

land a

ffair

s

1 APRIL 2008 - 31 MARCH 2009 99

No. Matter Y N

9. There are no significant deficiencies in the design and implementation of internal control in respectof compliance with applicable laws and regulations.

10. The information systems were appropriate to facilitate the preparation of the financial statements.

11. A risk assessment was conducted on a regular basis and a risk management strategy, which includesa fraud prevention plan, is documented and used as set out in Treasury Regulation 3.2/27.2.

12. Delegations of responsibility are in place, as set out in section 44/56 of the PFMA.

Follow-up of audit findings

13. The prior year audit findings have been substantially addressed.

14. SCOPA/Oversight resolutions have been substantially implemented.

Issues relating to the reporting of performance information

15. The information systems were appropriate to facilitate the preparation of a performance report thatis accurate and complete.

16. Adequate control processes and procedures are designed and implemented to ensure the accuracyand completeness of reported performance information.

17. A strategic plan was prepared and approved for the financial year under review for purposes of monitoring the performance in relation to the budget and delivery by the entity against its mandate, predeterminedobjectives, outputs, indicators and targets Treasury Regulation 29.1/30.1.

18. There is a functioning performance management system and performance bonuses are only paidafter proper assessment and approval by those charged with governance.

�

�

��

��

�

�

�

�

Investigations 10. An investigation is being performed by internal audit in

respect of allegations of corruption at one of the DeedsRegistration’s regional offices. The investigation was stillongoing at the reporting date.

Report on other legal &regulatory requirementsReport on performanceinformation11. I have reviewed the performance information as set out

on pages 100 to 113 as part of Department of LandAffairs audit. Findings identified will be reported as partof Department of Land Affair’s audit report.

Appreciation12. The assistance rendered by the staff of the Deeds

Registration Trading Account during the audit issincerely appreciated.

Pretoria31 July 2009


vote 27

Statement of Financial Positionfor the year ended 31 March 2009 - Deeds Registration Trading Account

Non-current AssetsProperty, Plant & Equipment

Current AssetsInventoriesTrade and Other ReceivablesCash and cash equivalents

TOTAL ASSETS

Equity and Liabilities

EquityAccumulated Surplus

Non-current LiabilitesFinance Lease ObligationsProvisions

Current LiabilitiesFinance Lease ObligationsTrade and Other PayablesProvisionsDeferred RevenueAmount payable to National Revenue fund

TOTAL EQUITY AND LIABILITIES

Notes

2

456

78

7108

9

Mar-09R‘000

135 606

93 769 924

60 201 32 644

229 375

126 911

17 265 493

16 772

85 199 645

13 492 11 057 1 751

58 254

229 375

Mar-08R'000

Restated

121 690

116 549 1 200

62 070 53 279

238 239

126 911

16 439 713

15 726

94 889 997

25 760 9 878

58 254

238 239

1 APRIL 2008 - 31 MARCH 2009 101

Registration of Deeds and Sale of InformationOther IncomeGrant From Department of Land AffairsOperating Expenses

Operating Surplus

Investment RevenueFinance Costs

Surplus for the year

Notes

22

12

1314

Mar-09R'000

309 779459

53 063(367 684)

(4 383)

4 567(184)

0

Mar-08R'000

Restated

418 989414

(352 277)

67 126

14 169(1 452)

79 843

Statement of Comprehensive Incomefor the year ended 31 March 2009 - Deeds Registration Trading Account

vote 27


Balance at the beginning of the period


Balance at the end of the year

Note Mar-09R '000

126 911

-

126 911

Mar-08R '000

Restated

47 068

79 843

126 911

vote 27

Statement of Changes in Net Assetsfor the year ended 31 March 2009 - Deeds Registration Trading Account

1 APRIL 2008 - 31 MARCH 2009 103

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Generated from operationsInvestment RevenueFinance Costs

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant and EquipmentProceeds on sale of Property, Plant and Equipment

CASH FLOWS FROM FINANCING ACTIVITIES

Finance lease paymentsAmount repaid to National Revenue Fund

TOTAL CASH MOVEMENT FOR THE YEARCash at the beginning of the year

TOTAL CASH AT THE END OF THE YEAR

Note

171314

9

6

Mar-09R'000

15 145

10 7624 567(184)

(35 208)

(35 208)0

(572)

(572)

(20 635)53 279

32 644

Mar-08R'000

Restated

120 990

108 27314 169(1 452)

(41 997)

(42 001)4

(119 793)

(579)(119 214)

(40 800)94 079

53 279

Cash Flow Statementfor the year ended 31 March 2009 - Deeds Registration Trading Account

vote 27


1 ACCOUNTING POLICIES

APPLICABLE LEGISLATION AND REGULATIONS

1.1 The treatment of significant account balances and transactions has been made in terms of the Statements of Generally Accepted AccountingProcedures and in a manner contemplated by the International Accounting Standards.

1.2 Deviations from the Accounting Standards, where applicable, have been disclosed explicitly on the Annual Financial Statements withdetailed explanations for such deviations and the implications on the Annual Financial Statements.

SPECIFIC ACCOUNTING POLICIES

1.3 Basis of preparation of the annual financial statements

The Annual Financial Statements have been prepared in accordance with the South African Statements of Generally Accepted AccountingPractices (GAAP) including any interpretations of such Statements issued by the Accounting Practices Board.

All amounts have been presented in the currency of the South African Rand (R), which is also the functional currency of the entity. Unlessotherwise stated all financial figures have been rounded to the nearest One Thousand Rand (R'000).

In preparing the annual financial statements, management have made estimates and assumptions that affect the amounts presented in theannual financial statements and related disclosures. The use of relevant and reliable available information and the application of judgementsis inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annualfinancial statements. Significant judgements include:

1.3.1 Fair value estimates

The carrying value less impairment provision of trade receivables and payables have been assumed to approximate their fair values. The fairvalue of financial liabilities for disclosure purposes has been estimated by discounting the future contractual cash flows at the currentmarket interest rate that is available to the entity for similar financial instruments.

1.3.2 Services in kind

Services received free of charge from other organs of state have not been recognised in the financial statements. The disclosure of theirnature and type has however been disclosed by way of note to the financial statements in line with IAS 20. These services may include:

� Administration Services

� Accommodation

� Internal Audit Function

� Information Technology

� Staff Training

All other services that are provided on behalf of the entity and are charged to the entity have been classified normally as expenses in termsof the approved Standard Chart of Accounts (SCOA)

1.3.3 Property Plant and Equipment

Property Plant and Equipment has been stated at cost less accumulated depreciation and impairment losses.

The effective date of depreciation has been the date on which the asset was brought to use. The following estimates have been used indetermining the useful life, residual values and the expected pattern of consumption of the future economic benefits embodied in theassets.

Item Average Useful life

Furniture and Fixtures 15 years

Computer Equipment 5-13 years

Office equipment 5-13 years

Leasehold Fixtures 5-13 years

Photographic and Technical Equipment 13 years

State-owned capital works 25 years

� Work in Progress

Work in progress relates to items purchased but not brought into use and therefore has not be depreciated.

� Leasehold Capital Works

Expenditure on improvement on leasehold buildings has been depreciated over the remaining period of the underlying lease for suchbuilding.

� Finance Leases

Assets under the finance lease agreements have been depreciated over the underlying period of the lease.

1.3.4 Trade and Other Receivables

Trade Receivables have been measured at fair value less provision for impairment. The impairment provision has been deemed to be allamounts that are outstanding beyond 90 days. Assessments for a less impairment provision have been made on individual debtors based onspecific probability of recovery. The fair value includes the initial recognition of the debts plus interest levied at rates approved by the ChiefRegistrar of Deeds. Such interest has been levied on dates when the debt is due and payable but outstanding.

1.3.5 Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and other short-term highly liquid investments that are readilyconvertible within 30 days to known amounts of cash with an insignificant risk of changes in value. These are recorded at fair value and areclassified as “held for trading financial assets”.

vote 27

Notes to the Annual Financial Statementsfor the year ended 31 March 2009 - Deeds Registration Trading Account

1 APRIL 2008 - 31 MARCH 2009 105

1.3.6 Inventories

Inventories have been measured at the lower of cost or net realisable value where the cost is assigned using the weighted average costformula.

1.3.7 Impairment of assets

The entity has assessed all assets at balance sheet date for any indication that any asset may be impaired. Where such an indication exists,the estimate of the recoverable amount of the asset has been made and the carrying amount written down to the recoverable amount, thusrecognising an impairment loss.

1.3.8 Employee Benefits

� Short-term employee Benefits

The cost of short term employee benefits, (those payable within 12 months after the service is rendered, e.g. vacation leave, bonuses andmedical care), has been recognised in the period in which the service is rendered and has not been discounted.

� Defined contribution plans

Payments to defined contribution retirement benefit plans have been expensed as they fall due. Payments made to the state planretirement benefit schemes have been dealt with as defined contribution plans where the entity’s obligation under the schemes isequivalent to those arising in a defined contribution retirement benefit plan.

1.3.9 Revenue

Revenue consists of fees charged for property registration and for provision of registration data to customers in accordance with the tariffsprovided for in the Schedule of Fees prescribed by Regulation 84 of the Deeds Registries Act, 1937 (Act 47 of 1937), and approved by theMinister for Agriculture and Land Affairs. Revenue is recognised on execution of the Deeds applications as well as provision of the data thathas been requested.

1.3.10 Provisions

Provisions have been raised when management has determined estimates based on the best information available for the uncertainoutcome of leave and bonus payouts.


2. Property, Plant and Equipment

Furniture and FixturesOffice equipment (Finance Lease)IT equipmentLeasehold improvementsPhotographic equipment

Reconciliation of Property, Plant and Equipment- 2009

Furniture and FixturesOffice equipment (Finance Lease)IT equipmentLeasehold improvementsPhotographic equipment

Note: Cash additions on the Cash Flow Statement are net of transfers from Work In Progress.

Reconciliation of Property, Plant and Equipment - 2008

Furniture and FixturesOffice equipmentIT equipmentLeasehold improvementsPhotographic equipment

Office Equipment (Finance Leases) additions and depreciation for 2008 are restated as a result of Finance Lease Assets not recognised and disclosedin 2007/2008 at a cost of R665 and depreciation of R30 (in thousands).

The Department of Public Works provides accommodation for all the Deeds Registries. The category of Leasehold Improvements represents costsincurred by the Deeds Registration Trading Account to improve the buildings that are owned / leased on behalf of Deeds Registries by theDepartment of Public Works. The lease improvements are amortised over the lease period.

Change in Estimate

The useful lives of items of leasehold buildings have been revised to coincide with the lease term for such buildings. This has resulted in a reductionto depreciation of R1.8 million.

3. Financial Assets by category - 2009

Trade and other receivablesCash and cash equivalents

Financial Assets by category - 2008

Trade and other receivablesCash and cash equivalents

The accounting policies for financial instruments have been applied to the line items above.

CarryingValueR'000

20 128 1 040

64 814 47 123 2 501

135 606

Disposals /Transfers

R'000

(271)

(13 836)(4)

(14 111)

AdditionsR'000

Restated

5 602 665

15 505 19 324

905

42 001

Fair valuethrough

profit/ loss -held fortrading

R'000

32 644

32 644

Fair valuethrough

profit/ loss -held fortrading

R'000

53 279

53 279

Cost/Valuation

R'000

24 060 4 697

69 200 79 958 6 278

184 193

Depreciation

R'000

(1 761)(1 205)(8 834)(9 044)

(323)

(21 167)

DisposalsR'000

(178)

(882)

(1)

(1 061)

Fair valuethrough

profit/ loss -designated

R'000

-

Fair valuethrough

profit/ loss -designated

R'000

-

-

2008

AccumulatedDepreciation

R'000Restated

(6 767)(3 080)

(21 737)(27 160)(3 759)

(62 503)

Accum Depr.Disposals

R'000

146

4

150

DepreciationR'000

Restated

(1 403)(1 262)(4 778)(9 165)

(408)

(17 016)

Held tomaturity

R'000

-

Held tomaturity

R'000

-

-

CarryingValueR'000

17 293 1 617

47 463 52 798 2 519

121 690

Total

R'000

20 128 1 040

64 814 47 123 2 501

135 606

TotalR'000

Restated

17 293 1 617

47 463 52 798 2 519

121 690

Available forsale

R'000

-

Available forsale

R'000

-

-

Cost/Valuation

R'000

28 511 5 326

95 384 83 326 6 579

219 126

OpeningBalance

R'000Restated

17 293 1 617

47 463 52 798 2 519

121 690

2009

AccumulatedDepreciation

R'000

(8 383)(4 286)

(30 570)(36 203)(4 078)

(83 520)

Additions

R'000

4 721 628

26 185 17 205

305

49 044

OpeningBalance

R'000

13 272 2 214

37 618 42 639 2 023

97 766

Loans andreceivables

R'000

60 201

60 201

Loans andreceivables

R'000

62 070

62 070

vote 27

Notes to the Annual Financial Statementsfor the year ended 31 March 2009 - Deeds Registration Trading Account

1 APRIL 2008 - 31 MARCH 2009 107

4. Inventories

Consumable material on hand

5. Trade and Other Receivables

Trade ReceivablesPrepaymentsInterest receivableOther receivables

The carrying value of Trade Receivables of R37,058 million is stated after a provision for Impairment of Trade and Other Receivables ofR4,933 million (2008: R7,475 million) and gross trade receivables value of R41,991 million. The provision for impairment of Trade and OtherReceivables is determined from the Age Analysis of Trade Receivables that are overdue for 90 days and more. The prospects of recovery are howeverassessed per individual account.

Reconciliation of Impairment of Trade and Other Receivables

Opening balanceProvision for impairment

Closing balance

Trade Receivables Age Analysis - (Past due not impaired)

Current30 days60 days90 daysOver 90 days

Total

The current provision for impairment of Trade and Other Receivables has been included in operating expenses in the income statement, underaccount "Depreciation, Amortisation and Impairments". Amounts charged to Impairment of Receivables are generally written off when there is noexpectation of recovery. The maximum exposure to credit risk at reporting date is the fair value of each class of receivables recognised above. DeedsRegistration does not hold any collateral as security.

6. Cash and cash equivalents

Cash on Hand (Petty Cash)Bank balancesPaymaster - General Account

Cash and deposits are held with a registered banking institution which is subjected to insignificant credit risk. The maximum exposure to credit riskat balance sheet date is the fair value of each class of cash and cash equivalents mentioned above.

7. Finance lease obligations

Minimum lease payments due- within one yearin second to fifth year inclusive

Less: future finance charges

Present value of minimum lease payments

Present value of minimum lease payments due- within one yearin second to fifth year inclusive

Non - Current liabilitiesCurrent liabilities

2009R'000

924

924

2009R'000

37 058 48

201 22 894

60 201

2009R'000

7 475 (2 542)

4 933

2009R'000

31 478 4 374

503 39

664

37 058

2009R'000

15 32 629

-

32 644

2009R'000

742550

1 292(154)

1 138

645493

1 138

493645

1 138

2008R'000

1 200

1 200

2008R'000

53 951 1 209 1 283 5 627

62 070

2008R'000

4 360 3 115

7 475

2008R'000

15 53 090

174

53 279

2008R'000

Restated

1 136776

1 912(202)

1 710

997713

1 710

713997

1 710


8. Provisions

Reconciliation of provisions - 2009

Leave pay provisionBonus Provision

Reconciliation of provisions - 2008

Leave pay provisionBonus Provision

Non - Current liabilitiesCurrent liabilities

9. Amount payable to the National Revenue Fund

Balance at the end of the year

The amount payable to the National Revenue Fund represents amounts outstanding and due to the fund as a result of accumulated surpluses bythe Trading Account which are not committed for projects.

10. Trade and Other Payables

Trade payablesUnallocated CashSundry accrualsDeposits receivedOther Payables

Unallocated cash represents money deposited at the bank but not yet identified and allocated to Trade Receivables at the end of the financial year.

11. Financial liabilities by category

The accounting policy for financial instruments have been applied to the lineitems below:

2009

Trade and other payables

2008

Trade and other payables

Openingbalance

R'000

20 963 4 641

25 604

Openingbalance

R '000

20 691 4 142

24 833

Financialliabilities at

amortisedcosts

R'000

13 492

Financialliabilities at

amortisedcosts

R'000

25 760

Additions

R'000

2 251 9 739

11 990

Additions

R '000

1 409 8 446

9 855

Fair valuethrough

profit or loss- held for

tradingR'000

-

Fair valuethrough

profit or loss- held for

tradingR'000

-

Utilisedduring the

yearR'000

(942)(8 823)

(9 765)

Utilisedduring the

year R '000

(1 137)(7 947)

(9 084)

2009R'000

16 772 11 057

27 829

2009R'000

58 254

2009R'000

7 725 540

3 694 -

1 533

13 492

Fair valuethrough

profit or loss- designated

R'000

-

Fair valuethrough

profit or loss- designated

R'000

-

CarryingValue

R'000

22 272 5 557

27 829

CarryingValue

R '000

20 963 4 641

25 604

2008R'000

15 726 9 878

25 604

2008R'000

58 254

2008R'000

10 526 462

14 326 176 270

25 760

Total

R'000

13492

Total

R'000

25 760

1 APRIL 2008 - 31 MARCH 2009 109

12. Operating surplus

Operating surplus for the year is stated after accounting for the following:

Operating Lease charges:Equipment - contractual amount (GL Account 8050)Parking - contractual amount (GL Account 8359)

Loss on sale of property, plant and equipmentImpairment on trade and other receivablesDepreciation on property, plant and equipmentEmployee costs

13. Investment Revenue

Bank (Financial asset - held for trading)Interest charged on trade and other receivablesOther interest

14. Finance costs

Trade and other payables (Financial liability at amortised cost)Finance LeasesOther interest paid

15. Auditors' remuneration

External audit feesInternal audit fees

16. Operating Leases

The following amounts are due in future financial years due to contractual obligations:

Minimum Lease payments due:Payable within 1 yearPayable within 2nd to fifth year

17. Cash generated from operations


Adjustment for:Depreciation and amortisationLoss on sale of assetsInterest receivedFinance costs

Impairment lossesMovements in provisions

Changes in working capital:InventoriesDeferred revenueTrade and other receivablesTrade and other payables

2009R'000

20 911 1 000

21 911

(125)(2 542)21 167

204 949

2009R'000

4 120 353 94

4 567

2009R'000

- 181

3

184

2009R'000

1 968 13

1 981

2009R'000

7 108 765

7 873

2009R'000

-

21 167125

(4 567)184

(2 542)2 225

2761 7514 411

(12 268)

10 762

2008R'000

Restated

16 227 471

16 698

(1 057)3 116

17 016195 267

2008R'000

12 560 1 608

1

14 169

2008R'000

Restated

278 201 973

1 452

2008R'000

781 1 680

2 461

2008R'000

923 -

923

2008R'000

Restated

79 843

17 0161 057

(14 169)1 452

3 116771

(61)-

6 85212 396

108 273


18. Contingent Liabilities

The Department of Land Affairs provides housing guarantees at R682 as at 31 March 2009 (2008: R763) to financial institutions, in the likely eventof employees unable to honour their commitments to these institutions for the purchase of housing.

The trading entity is currently investigating an incorrect registration of a deed. The investigation was not finalised as at the date of sign off of theannual financial statements. Although the amount cannot be quantified, and probability remote, the possibility of a litigation against the Entityexists. As such financial statements have not been adjusted to reflect this

19. Related Parties

Relationship

National Departments

Major National Public Entities

Other National Public Entities

Related Party Balances

Amounts included in Trade Receivables Department of AgricultureDepartment of HousingDepartment of Land AffairsDepartment of Public WorksDepartment of Provincial and Local GovernmentDepartment of Water Affairs and ForestryDepartment of EducationDepartment of TransportDepartment of Minerals and EnergyDepartment of Justice and Constitutional DevelopmentLand and Agricultural Bank of South AfricaEskomCouncil for Scientific and Industrial ResearchSouth African Police ServicesSouth African Revenue ServicesSpecial Investigating UnitNational Intelligence AgencyState Information Technology AgencyTransnet

Amounts included in Trade PayablesDepartment of Land AffairsDepartment of Minerals and EnergyDepartment of Water Affairs and ForestryDepartment of HousingSouth African Bureau of StandardsSouth African Revenue ServicesState Information Technology AgencyTelkom SA

Department

Department of Land AffairsDepartment of AgricultureDepartment of EducationDepartment of HealthDepartment of HousingDepartment of Justice and Constitutional DevelopmentDepartment of Minerals and EnergyDepartment of Provincial and Local GovernmentDepartment of Public WorksDepartment of Trade and IndustryDepartment of TransportDepartment of Social DevelopmentDepartment of Water Affairs and ForestryNational Intelligence AgencySouth African Police ServicesSouth African Secret Service

Statistics South AfricaEskomIndustrial Development Corporation of South AfricaLand and Agricultural Bank of South AfricaSouth African Revenue ServicesTelkom SATransnet

Special Investigating UnitState Information Technology AgencySouth African Post Office

2009R'000

1 859

7 45

147 -1

16 3

56 74

- - 1

3 2

21 390 18

(248)-

(7)(12)(24)(5)

-(123)

2008R'000

2259

3 376 63

167 13

- - - -

102 3 4 1 1 3 -- -

----

(39)(43)

(3 419)(141)

1 APRIL 2008 - 31 MARCH 2009 111

Rendering of Services to Related Parties

Department of AgricultureDepartment of HealthDepartment of HousingDepartment of Justice and Constitutional DevelopmentDepartment of Land AffairsDepartment of Minerals and EnergyDepartment of Provincial and Local GovernmentDepartment of Public WorksDepartment of TransportDepartment of Water Affairs and ForestryDepartment of EducationCouncil for Scientific and Industrial ResearchSouth African Police ServicesSouth African Revenue ServicesSpecial Investigating UnitNational Intelligence AgencyEskomLand and Agricultural Bank of South AfricaTransnetSA National ParksSouth African Reserve Bank

Purchases of goods from related partiesDepartment of AgricultureDepartment of Justice and Constitutional DevelopmentDepartment of Provincial and Local GovernmentSouth African Broadcasting CorporationSouth African Post OfficeTelkom SAState Information Technology AgencySouth African Council of the BlindSouth African Bureau of Standards

Settlement of Liabilities on behalf of related partiesDepartment of Land AffairsDepartment of Provincial and Local GovernmentDepartment of Social Development

20. Prior Period Errors

During the 2008/2009 financial year, the entity discovered assets that were acquired through finance leases incorrectlyaccounted for in 2007/2008. The error resulted in restatement of the following line items for the year ended31 March 2008:

Property Plant and Equipment was increased by R635 000 to account for Finance Lease Asset. This increase to PPE wasdetermined as follows:

Office EquipmentAccumulated Depreciation on Office Equipment

Finance Lease Obligation increased byDepreciation expense increased by Finance Costs increased byLease Rentals on Operating Leases were decreased by net

During the current year, the entity received a material credit note for the services rendered by the State InformationTechnology agency for the current and prior period invoices. As the credit note related to three months of the prior year,the error resulted in the restatement of the following line items:

Other Receivables increased by IT expenses decreased by

It was further discovered that a salary run that related to 2007/2008 was not posted and only processed in this financialyear. The following restatement of accounts was effected:

Employee Costs increased by Other Receivables decreased by

2009R'000

(1 866)-

(720)(180)

(5 942)(16)

(892)(159)(48)(82)(2)

--

(2)(12)(18)(7)

(365)(30)(3)(1)

19 737 -

18 10

2 371 40 849

- 61

12 049 1 7

2009R'000

2008R'000

(142)(1)

(690)(2)

(3 803)(1)

(251)(234)

(1)(132)

-(4)

(13)(3)(3)

-(13)

(411)---

20 5 653

1 126

6 2 051

44 876 17

131

16 089 7 -

2008R'000

665 30

638309

15

4 1314 131

1 9491 949


21. Risk Management

The Trading Account Activity exposes it to currency risk, fair value interest rate risk, cash flow interest rate risk, credit risk and liquidity risk.

Liquidity RiskThis risk is as a result of funds available to cover future commitments. The entity manages the liquidity risk through ongoing review of futurecommitments.

The table below analyses the Trading Account financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings basedon the remaining period at balance sheet date to the contractual maturity date. Balances due within 12 months equal their carrying balances as theimpact of discounting is not significant.

At 31 March 2009

Trade and Other Payables

At 31 March 2008

Trade and Other Payables

Interest Rate RiskThe Trading Account has no significant interest bearing assets and the income and operating cash flows are substantially independent of changes inthe market interest rates.

Deposits attract interest at rates that vary with prime. The Trading Account policy is to manage interest rate risk such that fluctuations in rate do nohave a material impact on surplus or deficit. At year end, the financial instruments exposed to interest rate risk were balances with banks.

Credit RiskCredit risk consists mainly of cash deposits, cash equivalents and trade debtors. The entity only deposits cash with a major bank with high qualitycredit standing and limits exposure to any one counter-party. Trade receivables comprise a widespread customer base. Management evaluatedcredit risk relating to customers on an ongoing basis.

Financial assets exposed to risk at year end included:

Deposits with BanksTrade Receivables (gross)

22. Services in Kind

Administrative Services in kindDeeds Trading Account falls under the administration of the Department of Land Affairs. The executive of the department spend some of their timeon the affairs of the Trading Account. Furthermore, the department provides the services of internal audit function, information technology andstaff training. There is no cost charged by the department in this regard.

Other Income on the Statement of Comprehensive Income includes a grant received from the Department of Land Affairs of R54.8 million. Thisgrant was to compensate for lost revenue as a result of a reduction in deeds registrations. Since the Trading Account posted a surplus of R1.7million at year end, this was disclosed as deferred revenue in the Balance Sheet.

Other Services in kindThe Department of Public Works provides accommodation for some of the Deeds Registries.

23. Fruitless and Wasteful Expenditure

Opening balanceAdd: Fruitless and wasteful expenditure – current yearLess: Fruitless and wasteful expenditure condoned

Less: Transfers to receivables for recovery (amounts not condoned)Less: Amounts not recoverable (not condoned)Fruitless and wasteful expenditure awaiting condonation

Analysis of expenditure awaiting condonation per age classification:

Current YearPrior YearsTotal

Details of Fruitless and Wasteful Expenditure:

IncidentThe wasteful and fruitless expenditure accounted for in 2008 was the interestpaid to SARS for the late payment of PAYE.

COMMENTSAwaiting condonement from the Accounting Officer

R'000Less than 1

year

13 492

Less than 1year

25 760

R'0001 to 2 years

1 to 2 years

R'0002 to 5 years

2 to 5 years

2009R'000

32 629 37 058

2009R'000

972--

-

972

-972972

R'000Over 5 years

Over 5 years

2008R'000

53 090 53 951

2008R'000

-972

-

-

972

972-

972

Disciplinary steps taken/criminal proceedings"An investigation is being conducted on this matter anddisplinary steps against relevant official/s will be taken uponreceiving a final report. An application for condonement wasmade to the Accounting Officer. This was recognised as anexpense in 2008."

1 APRIL 2008 - 31 MARCH 2009 113

Revenue

Registration of deeds and sale of informationOther IncomeGrant from Department of Land AffairsInvestment Revenue

Operating expenses

AdvertisingAuditors remunerationBad DebtsBank ChargesCleaningConsumablesDepreciation, amortisation and impairmentsEmployee costsEntertainmentIT ExpensesLease rental on operating leasesLegal expensesLoss on disposal of assetsOther consulting and professional feesOther expensesPrinting and stationeryRepairs and maintenanceSecurityStaff welfareSubscriptionsTelephone and faxTrainingTransport and freightTravel - local

Finance Costs


Note

2213

15

12

14

Mar-09R '000

367 868

309 779 459

53 063 4 567

367 684

254 1 981 3 316

187 2 755

979 18 625

204 949 2 082

35 723 21 911 19 757

125 15 306

26 7 164 9 001 3 027

95 777

3 802 1 140 6 272 8 430

184

-

Mar-08R '000

Restated

433 572

418 989 414

-14 169

352 277

128 2 461

40 168

2 348 1 349

20 132 195 267

1 707 49 709 16 698 5 187 1 057

21 765 204

6 597 6 941 2 846

239 424

3 023 726

6 541 6 720

1 452

79 843

vote 27

Detailed Statement of Comprehensive Incomefor the year ended 31 March 2009 - Deeds Registration Trading Account

land

aff

airs

5P A R T 5 H U M A N

R E S O U R C EM A N A G E M E N T

land affairs

1 APRIL 2008 - 31 MARCH 2009 115

part5H U M A NR E S O U R C EM A N A G E M E N T

OversightReport

NATIONAL DEPARTMENT OF LAND AFFAIRS2008/2009

Table 1.1 - Main services provided &standards

Table 1.2 - Consultation arrangements withcustomers

Table 1.3 - Service Delivery Access SystemTable 1.4 - Service Information ToolTable 1.5 - Complaint MechanismTable 2.1 - Personnel Cost by ProgrammeTable 2.2 - Personnel Costs by Salary BandsTable 2.3 - Salaries, Overtime, Housing

Allowance & Medical Assistanceby Programme

Table 2.4 - Salaries, Overtime, HousingAllowance & Medical Assistanceby Salary Band

Table 3.1 - Employment & Vacancies byProgramme

Table 3.2 - Employment & Vacancies bySalary Band

Table 3.3 - Employment & Vacancies byCritical Occupation

Table 4.1 - Job EvaluationTable 4.2 - Profile of Employees whose salary

positions were upgraded due totheir posts being upgraded

Table 4.3 - Employees whose salary levelexceed the grade determined byJob Evaluation

Table 4.4 - Profile of Employees whose salarylevel exceed the grade determinedby Job Evaluation

Table 5.1 - Annual Turnover rates by SalaryBand

Table 5.2 - Annual Turnover rates by CriticalOccupation

Table 5.3 - Reasons why staff are leaving theDepartment

Table 5.4 - Promotions by Salary BandTable 5.5 - Promotions by Critical OccupationTable 6.1 - Total number of employees in

each of the following categories(SASCO)

Table 6.2 - Total number of employees ineach of the followingoccupational bands

Table 6.3 - RecruitmentTable 6.4 - PromotionsTable 6.5 - TerminationsTable 6.6 - Disciplinary ActionTable 6.7 - Skills Development (%)Table 7.1 - Performance Rewards by race,

gender & disabilityTable 7.2 - Performance Rewards by Salary

Band below SMSTable 7.3 - Performance Rewards By Critical

OccupationTable 7.4 - Performance Rewards by Salary

Band for SMSTable 8.1 - Foreign Workers by Salary BandTable 8.2 - Foreign Workers by Major

OccupationTable 9.1 - Sick Leave, 1 January 2008 to

31 December 2008Table 9.2 - Incapacity Leave, 1 January 2008

to 31 December 2008Table 9.3 - Annual Leave, 1 January 2008 to

31 December 2008Table 9.4 - Capped Leave, 1 January 2008 to

31 December 2008Table 9.5 - Leave PayoutsTable 10.1 - Steps taken to reduce the risk of

occupational exposureTable 10.2 - Details of Health Promotion and

HIV/AIDS ProgrammesTable 11.1 - Collective AgreementsTable 11.2 - Misconduct & Discipline Hearings

finalisedTable 11.3 - Types of misconduct addressed at

Disciplinary HearingsTable 11.4 - Grievances lodgedTable 11.5 - Disputes lodged with CouncilsTable 11.6 - Strike ActionsTable 11.7 - Precautionary SuspensionsTable 12.1 - Training Needs IdentifiedTable 12.2 - Training ProvidedTable 13.1 - Injury on DutyTable 14.1 - Report on consultant

appointments using appropriatedfunds


1. Service DeliveryThe Department developed a Service Delivery Improvement (SDI) Plan in conjunction with its Strategic as well as Operation Plan.The following tables reflect the components of the SDI Plan as well as the progress made in the implementation of the plan.

Table 1.1 - Main services provided and standardsMain Services

1. Provide grants tofacilitate access toland

2. Render land reformsupport services

3. Register rights in land

4. Provide registrationinformation

5. Examine and approvecadastral documents

Actual Customers

Landless and Tenureinsecure individuals andcommunitiesAspirant/emerging blackfarmersPreviously disadvantagedindividuals

Provincial Land ReformOffices (PLROs), StrategicPartners in theagricultural sector,Other governmentdepartments,Land reform beneficiaries

Land ownersPotential land ownersHolders of real rights inlandConveyancers/ NotariesMunicipalitiesGovernmentDepartmentsFinancial Institutions

Land ownersPotential land ownersHolders of real rights inlandConveyancers/ NotariesMunicipalitiesGovernmentDepartmentsFinancial InstitutionsInformation vendors

Professional landsurveyors Sectional TitlePractitioners DevelopersLand owners

Potential Customers

Land and tenureinsecure individuals andcommunitiesPersons/communitiesdisposessed of landrights Aspirant/emergingblack farmersAll spheres ofgovernmentUsers of spatialinformationUsers of deeds registries(land owners)

Provincial Land ReformOffices (PLROs)Land ClaimCommissioners (LCCs)Public Land SupportServices (PLSS)

Landless and tenureinsecure individuals andcommunities

Landless and tenureinsecure individuals andcommunities

Professional landsurveyors, Sectional TitlePractitioners, landowners and developers.

Standard of Service

608 060 hectares to bedistributed by March2009

12 334 beneficiariestargeted

Process 3000 requestson land reform support

Deeds available forregistration 10 workingdays after lodgement

Information available toclients 1 hour afterreceipt of request.Within 3 days for copiessent throughcorrespondence.Information is availableimmediately from theDeeds Web

Average number ofbatches received per dayper office:Pretoria .................40Cape Town ............26Pietermaritzburg....14Bloemfontein.........6Nelspruit................5Limpopo................5

Actual Achievementagainst Standards

443 600 hectaresdistributed

14 457 beneficiariesbenefited

Achieved

Achieved.

Achieved

Average number ofbatches received andprocessed per day peroffice:Pretoria .................24Cape Town ............18Pietermaritzburg....13Bloemfontein.........5Nelspruit................4Limpopo................4

1 APRIL 2008 - 31 MARCH 2009 117

Table 1.1 - Main services provided and standards (continued)Main Services

6. Supply cadastrerelated information

7. Produce and supplymaps {topographic,ortho-photos andaeronautic charts}aerial photographsand digitaltopographicinformation

8. Maintain the NationalControl SurveyNetwork(trigonometric station& town survey marks)

9. Provide SpatialPlanning Services

10. Provide andmaintain a businessinformation andtechnologyarchitecture

11. Provide ICT ServiceManagement(OperationalSupport)

12. Provide support inthe developmentand structuring ofthe Department’sestablishment.

Actual Customers

Professional LandSurveyorsSectional TitlePractitionersConveyancersOther GovernmentDepartmentsProvincial DepartmentsLocal AuthoritiesOrgans of StateGeneral Public

The Public AviationsectorCommercial Clients(Vendors, agents,resellers, recreational,and professional users),Potential Map Users.NGOs

Survey industry

MunicipalitiesProvincial departmentsEducational institutionsTown and regionalplannersLand Reform and LandRestitution

All DLA employees DLA beneficiaries andLand InformationConsumers

All DLA Components

All DLA staff

Potential Customers

Professional landsurveyors, Sectional TitlePractitioners,Conveyancers, Othergovernmentdepartments, ProvincialDepartments, LocalAuthorities, Organs ofState, General Public

NGOs, communityleaders, educators

Anyone requiringaccurate positioning inrelation to the nationalreference framework

NGOs and civil society atlarge

All DLA employees DLA beneficiaries andLand InformationConsumers

All DLA Components

All DLA staff

Standard of Service

Average number ofrequests for cadastrerelated informationreceived per dayRequests received:Public counter: 56 800Telephone: 28 600E-mail: 17 700Auto E-mailer: 252 000Faxes: 9 200Letters: 1 000Bulk data: 240Database extracts: 1 420Products supplied:Images 10.7 mPaper copies: 281 600Turnaround time:15 working days onaverage

• Digital imagery impactquantified by March2009

• 20% increase

100 clients for VirtualReference Stations (VRS)

3 000 requestsprocessed annually

Develop strategies andmaintain businessinformation andtechnology architecture

Service level agreementsdeveloped with allcomponents by March2010, and consistentperformance of 98%attainment of servicelevels

Average of 30 requestsper annum


Average number ofrequests for cadastrerelated informationreceived and processedper dayPublic counter: 52 500Telephone: 31 300E-mail: 15 400Auto E-mailer: 232 000Faxes: 8 150Letters: 1 200Bulk data: 220Database extracts: 1 250Products suppliedImages: 12.3mPaper copies: 27 000Turnaround time:18 days

Achieved. 163 688 km2

acquired by March 2009

Achieved. 215 clientsused the system

Achieved. More than3 000 requests wereprocessed for the pastfinancial year

MSP review wascompleted end March2009, and the ICTstrategy for the next 5years has beendeveloped

Partially achieved. SLA'sdeveloped with SITAGCCN Services, SITAMainframe hostingservices, SITAComprehensive e-Printing services as wellas HR Computek. SLA'swere developed withCD: Deeds and CD:Cadastral Surveys. SLA'swith Consulting Housesare in the process ofbeing finalised

No ad hoc investigationsundertaken due to thefinalisation of theAmended Structure



13. Evaluate and gradeposts

14. Provide guidanceand support on theimplementation ofthe Batho PeleRevitalisationStrategy.

15. Provide guidanceand support onmainstreaming ofdisability and youthstrategies.

16. Recruit, select andappoint staff

17. Provide training toLand Reformbeneficiaries

18. Provide bursaries foremployees andprospective bursaryholders

19. Provide training anddevelopment services

20. Provide internships,experiential trainingand graduatetraining

Actual Customers

All DLA staff

All DLA employees.

Disability sectorDLA employees withDisabilitiesYouth SectorDLA Employees

Job applicantsLine managers

LRAD beneficiariesProvincial land reformimplementers

DLA employees Matriculants

DLA employees

Graduates

Potential Customers

All DLA staff

All DLA employees.

Disability sectorDLA employees withDisabilitiesYouth SectorDLA Employees

Job applicantsLine managers

LRAD beneficiariesProvincial land reformimplementers

DLA employees Matriculants

DLA employees

Graduates

Standard of Service

Process and average of250 JEs per annum

Coordinate and facilitateBatho Pele projects andactivities

Coordinate and facilitateYouth and Disabilityprojects and activities

Recruitment completedwithin 43 days ofadvertisement

500 beneficiariestargeted

200 for the prospectivebursary holders

2 500 employees trainedand certified

200 interns and 200graduates placed


Completed jobevaluation on 866 jobtitles which represented4 576 posts

440 employees weretrained on customercare as well as 153 oncomplaints handlingand management

Participated in Youth inAgriculture and RuralDevelopment to improveinvolvement of theyouth in Land andAgrarian Reform,Co-ordinated theDepartmentalInternational Day forPersons with DisabilitiesCelebration inBloemfontein in 2008

Not achieved. Standardnot achieved due todelays in the shortlistingprocess and red tape inthe recruitment process

Partially achieved. 203beneficiaries weretrained and 90 receivedcertificates fromUniversity of Fort Hare

Achieved. 260 part-timebursaries awarded and221 prospectiveemployees placed onthe programme. Careerexhibitions held atKimberley, Giyani,Pietermaritzburg andthe Durban University ofTechnology, UNISA,Tshwane University ofTechnology. Other careerexhibitions were held inSoweto and at theYouth in Agriculture andRural Development inWestern Cape. 40prospective employeeswere awarded newbursaries and 33 placedon experiential training

Achieved. 2 800employees trained

Partially achieved. 246interns and 128graduates were placed

1 APRIL 2008 - 31 MARCH 2009 119


21. Provision of goodsand services -Logistics - PolicyPerformance andRisk Management,Customer RelationsManagement andAsset Management

22. Conduct InternalAudits

Actual Customers

All DLA OfficialsNational TreasuryAuditor-General

Internal Clients:MinisterDeputy MinisterDGDLA Top ManagementDLA Senior ManagementDLA EmployeesExternal Clients:DLA Audit CommitteeAuditor GeneralPSCScorpions

Potential Customers



Standard of Service

Ten requisitionsprocessed by officials perday

All the audit projects onthe 2008 -2011Strategic 3-year RollingInternal Audit Plan


All the requisitionssubmitted to SCMprocessed within 24 hrsof receipt.

All the audit projects onthe 2008/09 AnnualInternal Audit Plan ontrack for completion bythe target date of 30September 2009.

Table 1.2 - Consultation arrangements with CustomersType of Arrangement

Consultative meetings conductedas per achievement of milestoneswith effect from June 2008Customer satisfaction surveyconducted quarterly with effectfrom July 2008Suggestion boxes placed in alloffices by July 2008CLaRA workshops held perprovince by March 2009

Consultation on the grantsincrease by March 2009

Personal interviews withconveyancers dailyTelephone interviews with allservice beneficiaries dailyClient satisfaction surveyconducted quarterlyConsultative stakeholder forumsheld with beneficiaries quarterly

Quarterly Joint Liaison Committeemeetings initiated in SGs BFN,Limpopo & MpumalangaClient satisfaction surveyconducted annuallyAll offices to initiate aconsultation slot in GIS forummeetings by October 2008Installed suggestion boxes in alloffices by June 2008

Actual Achievements

Consultative meetings held inLimpopo, North West, as well asin Western Cape. Quarterlycustomer satisfaction surveysconducted in North WestProvincial Land Reform Office

All stakeholders were consulted

Achieved

Partially achieved. Some officeshave initiated Quarterly JointLiaison meetings and initiatedconsultation slots in GIS forummeetings. Suggestion boxesinstalled in all Surveyor-GeneralOffices and a client satisfactionsurvey was conducted

Actual Customer

Landless and Tenure insecureindividuals and communitiesAspirant/emerging blackfarmersPreviously disadvantagedindividuals

Provincial Land ReformOffices (PLROs), Strategic Partners in theAgricultural Sector,Other governmentdepartments, land reformbeneficiaries

Land ownersPotential land owners Holders of real rights in landConveyancers/NotariesMunicipalitiesGovernment DepartmentsFinancial Institutions

Professional land surveyorsSectional Title PractitionersDevelopersLand owners

Potential Customer

Land and tenure insecureindividuals and communitiesPersons/communitiesdisposed of land rightsAspirant/emerging blackfarmersAll spheres of governmentUsers of spatial informationUsers of deeds registries(land owners)

Provincial Land ReformOffices (PLROs)Land Claims Commissioners(LCCs)Public Land Support Services(PLSS)

Landless and tenure insecureindividuals and communities

Professional land surveyors,Sectional Title Practitioners,land owners and developers


Table 1.2 - Consultation arrangements with Customers (continued)Type of Arrangement

Participate in 8 exhibitions in 6provincesMonthly formal interactionsconducted with stakeholdersWorkshops facilitated(MapAware) in the public andNGO sectors by March 2009 Workshops facilitated todetermine user needs by March2009

Bi- Monthly Departmental ICTCommittee meetings Annual customer satisfactionsurvey conducted

Evaluation and structural designconducted in consultation withmanagers and job holdersJE Panel meetings to be plannedwith effect from April 08 for theyear

Customer satisfaction surveyconducted quarterly with effectfrom July 2008

Conduct consultative meetingswith the disability and youthsector in 5 provinces by March2009

Project specific training e.g.poultry farming developed byMarch 2009

Feedback sessions held withstakeholders

Multi-disciplinary working teamsestablished by March 2009

Survey on the performance of theSCM conducted by March 2009Monthly consultation meetingswith ManagersAsset verification conductedannually

Actual Achievements

Achieved. 44 workshops onMapAware facilitated

Partially achieved. ICT RiskManager appointed

Achieved. Managers givenregular feedback on theirrecruitment progress andrecruitment plans

Questionnaires distributed to linefunctions for administration tocustomers

Not achieved due to financialconstraints

Achieved. Dairy productioncourse was developed as well asFarm business management,Project time management,Project scope management andProject communicationmanagement

Achieved. Workshops regardingtraining matters were held withTraining Committees in allprovinces

Verification of assets and spotchecks were doneMonthly reporting was done andforwarded to the (A) CFO whowill in turn forward the report tothe MinisterThe survey has been deferred toMarch 2010 as the target dateInduction programme wasconducted to a minimum due tocapacity challengesQuarterly Supply ChainManagement Performance Surveywas conducted in July 2008.Thehelp desk is fully functionalManagers were invited to give anindication for such meetings andonly a few Directorates haveshown interest/responded to theinvitation

Survey target date deferred toMarch 2010. Consultationmeetings with managers had apoor turnout

Actual Customer

The Public Aviation sectorCommercial Clients (Vendors,agents, resellers, recreational,and professional users),Potential Map Users.NGOs

All DLA employeesDLA beneficiaries Land Information consumers

All DLA staff

All DLA staff

Disability sectorDLA employees withdisabilitiesYouth SectorDLA employees

LRAD beneficiaries Provincial land reformimplementers

DLA employees

Programme andResponsibility ManagersNational TreasuryAuditor-General


Potential Customer

NGOs, community leaders,educators

All DLA employeesDLA beneficiaries Land Information consumers

All DLA staff

All DLA staff

Disability sectorDLA employees withdisabilitiesYouth SectorDLA employees

LRAD beneficiaries Provincial land reformimplementers

DLA employees

Programme andResponsibility ManagersNational TreasuryAuditor-General


1 APRIL 2008 - 31 MARCH 2009 121

Table 1.2 - Consultation arrangements with Customers (continued)Type of Arrangement

Discussed annual audit planswith top management Engagement letters issued toaudit feesEntrance meetings conducted

Actual Achievements

Achieved

Actual Customer


Potential Customer


Table 1.3 - Service Delivery Access StrategyAccess Strategy

Casewise Repository by March 2009Service Desk integrated with telephony to reduce call drop rateby March 2009Collaborative self service portal – March 2009Federated call centres in regions by March 2009Multi-media electronic communication by March 2009Deeds Registry Office established in Limpopo by March 2009Accessibility for the disabled improved in Vryburg office byMarch 2009Simplified application procedures by July 2008Access via e-mail, telephone, cell phone, memorandumsregarding requests for audits and investigations as these are ofconfidential natureAssistive device guidelines developed by December 2008.Checklist for accessible venues developed by December 2008Vacant Posts advertised in the media

Signage improved in all Provincial Land Reform Offices by March2009 and access for disabled persons improved.Business cards provided to project managers for distribution tocustomers with effect from July 2009.

• Establish call centre for HRD related needs• Establish partnerships with NGOs, CBOs relevant land and

agrarian tertiary institutions in the provinces by March 2009• Training conducted in 9 provinces by March 2009

• Services provided in 8 SG offices (The new North West officeis to be fully operational by March 2009)

• Digital lodgement (subject to revival of e-Cadastre Project) byMarch 2009

• Telephone lists circulated via e-mail to Land Surveyors in all SGoffices by March 2009

• Methods of payment improved in all SG offices by March 2009• Web site query functions extended by March 2009• Helpdesks established in all SG offices by March 2009• Signage provided in all SG offices by October 2008Organisational and establishment structure of the Departmentpublished on the Intranet by 31 March 2009Provincial/District/Satellite offices used to increase access toservicesE-mails and telephoneOutlets established within every 150 km range, excluding theNorthern Cape where the range is 250 km by March 2009

Actual Achievements

Partially achieved. Ongoing, utilised mainly by HRM

Limpopo office not yet established and the Vryburg officeproject registered with DPW.

Achieved.

Achieved. Draft assistive guidelines available (in consultationprocess)Achieved. Adverts are placed in the national media, networkmessenger and DPSA circularsPartially achieved. KwaZulu-Natal, Free State, Northern Cape,Mpumalanga and North West PLRO's except for Bophirima,North West, have erected signage as well as upgradedinfrastructure to increase accessibility to disabled customers.Eastern Cape still to improve accessibility for disabled customers.Signage has been completed. Business cards are issued toproject managers for distribution to customers.Achieved• Held meetings with Potchefstroom and Cedara colleges of

Agriculture• Held meetings with ARC and NCT forestry cooperatives• Currently in contact with Citrus Academy with the view of

training beneficiaries6 SG Offices. East London satellite office established. Helpdesksnot yet established in all offices. Signage not erected in all SGoffices

Amended structure not yet approved therefore could not bepublishedThe recently introduced VPN to ensure greater accessibilitythrough increased bandwidth

Achieved


Table 1.4 - Service Information ToolTypes of Information Tool

• Monthly campaigns on ICT Policy and Governance e.g.Information Security Awareness

• Compliance monitoring and reporting on abuse• Multi-Media electronic communication

Daily, Weekly and Monthly Service Desk Statistics Trends AnalysisReportsProactive awareness and training programmesICT problems and incidents linked to low e-Literacy levelsMonthly campaigns on ICT policy and Governance

Disability and youth reports published on the website with effectfrom July 2008.

Deeds Registry staff trained on sign language by March 2009.Radio talk shows held in all official languages on propertyregistration bi-annuallyDeeds Registry pamphlets distributed

Information booklets and pamphlets distributed to customersquarterly. Annual workshops held in support of land reformimplementers and stakeholders per province. Informationsessions held with customers annually.

Workshops held quarterlyInformation sessions held annually

• Media shows• Updating information quarterly on the Intranet.• Develop and distribute posters for Land Reform offices by

March 2009

• Information on costs, formats and delivery times posted onnotice boards, leaflets and website by June 2008

• Booklet on the cadastral system, products and servicespublished by March 2009

• Conduct the structural design, technologies and approachesby March 2009.

• Promote awareness on JE Policy by 31 March 2009.

Posters on Surveys and Mapping products and services posted inpublic areas and government institutions quarterly

Actual Achievements

Not achieved. To be addressed in the 2009/2010 financial year

To be addressed in the 2009/2010 financial year

• Achieved.• Disability and youth empowerment strategies available on

website• DDF newsletter published.• DDF newsletter available

Partially achieved. Deeds Registry pamphlets distributed duringPublic Service Week and other awareness events

Achieved. Information booklets and brochures distributed duringcelebrations such as the Africa Public Service day and PublicService Week, quarterly meetings, exhibitions (Pretoria ShowGrounds) and izimbizo's

Workshops on land reform support were held regularly

Partially achieved.Required documentation submitted to Information Technology

Not achieved

Not achieved

Achieved

1 APRIL 2008 - 31 MARCH 2009 123

Table 1.5 - Complaint MechanismComplaints Mechanism

• Quarterly Service Level Review meetings• Complaints are noted and addressed via service managers• Fully compliant with Departmental Complaint Handling Policy

from July 2008

• More proactive preventative support through trend analysisand availability tools

• Improved Service Desk with integrated telephone to reducecall drop rates - March 2009.

• “Federated” call centres in Regions – March 2009.

• MSP Reviewed Annually• Comply with DPSA regulations and standards on MSPs and

Enterprise Architecture• Recruit and sustain architecture and business analysis expertise

- March 2009.• Develop and Implement SDLC policies, procedures and

standards – March 2009.

Evaluation forms for auditor to complete after each audit. Inaudit engagement letters define contact details of people in andoutside of Internal Audit to contact with complaints. Once acomplaint is received, it is immediately acknowledged andinvestigated. Feedback is provided within 2 weeks maximum.

• Telephonic queries responded to immediately• Written queries responded within 5 working days

Departmental complaints handling policy implemented witheffect from July 2008.Staff trained on handling of complaints by March 2009

Fully functional customer relations servicesTraining to CRM staff to handle complaintsComplaints register (monthly statistics)

Appeals addressed in accordance with Appeals Process asprescribed in JE Policy

Actual Achievements

Ongoing and being improved

Ongoing and being improved

• Reviewed MSP• Developed ICT Strategy, being reviewed• 2 Business Analysts were appointed, to commence duty in

March/April 09

100% achieved to date in audit projects.

Achieved

Departmental Complaints Policy and Procedure manualapproved in June 2008. 153 employees trained on complaintsand customer feedback management. Training on complaintsmanagement continued as part of customer care training. 440employees trained on customer care.

Fully operationalIn-house training is conducted on regular basis.

Standard maintained


2. ExpenditureThe Department budgeted in terms of clearly defined programmes. The following tables summarise the final audited expenditureby programme (Table 2.1) and by salary bands (Table 2.2). In particular, it provides an indication of the amount spent on personnelcosts in terms of each of the programmes or salary bands within the Department.

Table 2.1 - Personnel Costs by ProgrammeProgramme

Administration

Surveys & Mapping

Cadastral Surveys

Restitution

Land Reform

Spatial Planning

Deeds Registration

Total

TotalExpenditure

(R'000)

126 489

27 851

70 000

171 705

127 095

22 015

661 166

1 206 321

PersonnelExpenditure

(R'000)

103 595

27 601

70 000

146 830

102 560

21 173

131 021

602 780

Professional &SpecialServices(R'000)

13 765

64

-

24 782

24 454

629

416 468

480 162

Personnel Cost% of Total

Expenditure

17.19

4.58

11.61

24.36

17.01

3.51

21.74

100.00

AveragePersonnel Costper Employee

(R'000)

165

148

135

167

134

271

121

146

TrainingExpenditure

(R'000)

9 124

186

-

93

81

214

113 677

123 375

Table 2.2 - Personnel Costs by Salary BandsSalary Band

Lower skilled (1 - 2)

Skilled (3 - 5)

Highly skilled production (6 - 8)

Highly skilled supervision (9 - 12)

SMS (Level 13-16)

Total

Personnel Expenditure(R'000)

8 332

69 119

212 328

256 683

56 318

602 780

Percentage of TotalPersonnel Cost

1.38

11.47

35.22

42.58

9.34

100.00

Average Personnel Cost perEmployee ( R )

134

100

94

250

536

146

Table 2.3 - Salaries, Overtime, Housing Allowance and Medical Assistanceby Programme

Programme

Administration

Surveys and Mapping

Cadastral Surveys

Restitution

Land Reform

Spatial Planning

Deeds Registration

Total

Amount

91 981

24 773

62 176

135 233

94 419

19 551

116 703

544 836

%

16.88

4.55

11.41

24.82

17.33

3.59

21.42

90.39

Amount

2 969

12

1 260

1 008

486

13

334

6 082

%

48.82

0.20

20.72

16.57

7.99

0.21

5.49

1.01

Amount

2 824

775

1 954

3 698

2 217

580

4 532

16 580

%

17.03

4.67

11.79

22.30

13.37

3.50

27.33

2.75

Amount

5 821

2 041

4 609

6 892

5 438

1 029

9 452

35 282

%

16.50

5.78

13.06

19.53

15.41

2.92

26.79

5.85

Salaries Overtime Housing Allowance Medical Assistance

Table 2.4 - Salaries, Overtime, Housing Allowance and Medical Assistanceby Salary Band

Salary Band


Skilled (3 - 5)



SMS (Level 13-16)

Total

Amount

8 988

61 462

198 652

220 878

54 856

544 836

%

1.65

11.28

36.46

40.54

10.07

90.39

Amount

59

753

3 841

1 429

-

6 082

%

0.97

12.38

63.15

23.50

-

1.01

Amount

852

3 834

7 703

3 529

662

16 580

%

5.14

23.12

46.46

21.28

3.99

2.75

Amount

1 558

7 637

15 586

9 433

1 068

35 282

%

4.42

21.65

44.18

26.74

3.03

5.85

Salaries Overtime Housing Allowance Medical Assistance

1 APRIL 2008 - 31 MARCH 2009 125

3. Employment and Vacancies The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, andwhether there are any staff that are additional to the establishment. The vacancy rate reflects the percentage of posts that are notfilled.

Table 3.1 - Employment and Vacancies by ProgrammeProgramme

Administration

Surveys and Mapping

Cadastral Surveys

Restitution

Land Reform

Spatial Planning

Deeds Registration

Total

Number of posts

763

249

587

1 144

929

99

1 194

4 965

Number of postsfilled

628

187

517

881

766

78

1 079

4 136

Vacancy Rate %

17.69

24.90

11.93

22.99

17.55

21.21

9.63

16.70

Additional filledposts

6

-

38

6

185

10

7

252

Critical Occupations

Architects

Cartographic, Surveying

Cartographic and Surveyors

Community Development Workers

General Legal Administration

Legal Related

Social Sciences

Other

Total

Number of posts

37

219

368

1 052

989

137

129

2 034

4 965


30

179

302

825

873

128

106

1 693

4 136

Vacancy Rate %

18.92

18.26

17.93

21.58

11.73

6.57

17.83

16.76

16.70


1

-

37

165

10

2

11

26

252

Salary Band


Skilled (3 - 5)



SMS (Level 13-16)

Total

Number of posts

63

747

2 716

1 314

125

4 965


62

692

2 249

1 028

105

4 136

Vacancy Rate %

1.59

7.36

17.19

21.77

16.00

16.70


-

44

181

25

2

252

Table 3.2 - Employment and Vacancies by Salary Band

Table 3.3 - Employment and Vacancies by Critical Occupation


4. Job EvaluationThe Public Service Regulations, 2001 introduced job evaluation (JE) as a way of ensuring that work of equal value is remuneratedequally. The jobs evaluated in the Department are more than the posts approved on the current establishment as the Departmenthas realigned its posts. The recommended amended structure for implementation over a period of 5 years are 7219.

Table 4.1 - Job EvaluationSalary Band


Skilled (3 - 5)

Highly skilled production(6 - 8)

Highly skilled supervision(9 - 12)

SMS (Band A)

SMS (Band B)

SMS (Band C)

SMS (Band D)

Total

Number of Posts

63

747

2 716

1 314

88

22

13

2

4 965

Number of JobsEvaluated

316

1 503

3 514

1 724

111

42

8

1

7 219

% of Postsevaluated bySalary Band

501.59

201.20

129.38

131.20

126.14

190.91

61.54

50.00

145.40

Number

316

1 503

3 498

1 720

111

42

8

1

7 199

%

100.00

100.00

99.54

99.77

100.00

100.00

100.00

100.00

99.72

Number

-

-

16

4

-

-

-

-

20

%

-

-

0.46

0.23

-

-

-

-

0.28

Posts Upgraded Posts Downgraded

Table 4.2 - Profile of Employees whose salary positions were upgraded dueto their posts being upgraded

Beneficiaries

Female

Male

TotalEmployees with a disability

African

261

192

453

Coloured

53

15

68

Indian

6

5

11

White

10

9

19

Total

330

221

5511

Table 4.3 - Employees whose salary level exceed the grade determinedby Job Evaluation

Occupation

Messengers, Porters and Deliverers

Administrative Related

Artisans

Architects, Town and Regional Planners

Auxiliary and Related Workers

Cartographers and Surveyors

Cartographic Surveying and RelatedTechnicians


Computer System Designer and Analyst

Finance and Related Professionals



General Legal

General Legal

General Legal

Human Resources

Human Resources

Language Practitioners

Reason for Deviation

Amended Structure

Amended Structure

Amended Structure

Restructuring

Vhatsutsumi

Protective Promotions

Amended Structure


Amended Structure



Amended Structure

OSD Implementation

OSD Implementation

OSD Implementation

Amended Structure


Amended Structure

Number ofEmployees

4

2

7

1

15

7

6

15

1

1

1

7

10

41

11

7

1

2

Remune-ration Level

3

11

8

13

6

9

6

11

12

13

12

9

8

10

12

6

13

12

JobEvaluation

Level

4

10

6

12

5

8

5

10

10

12

10

8

7

8

10

5

12

10

1 APRIL 2008 - 31 MARCH 2009 127

Table 4.3 - Employees whose salary level exceed the grade determinedby Job Evaluation (continued)

Occupation

Librarian and Related Professionals

Material Recording and Transport Clerks

Other Administrative and Related Clerks





Other Information Technology Personnel

Secretaries and other KeyboardOperating Clerks

Secretaries and other KeyboardOperating Clerks

Senior Managers

Senior Managers

Social Science Related

Statisticians and Related Professionals


Reason for Deviation

Higher Salary Award

Amended Structure

Amended Structure

Vhatsutsumi

Restructuring

Amended Structure

Amended Structure

Downgrade

Amended Structure

Amended Structure

Higher Salary Award

Higher Salary Award

Higher Salary Award

Amended Structure

Number ofEmployees

1

2

4

5

1

3

3

4

2

12

2

1

1

1

1795

Remune-ration Level

9

9

7

6

13

10

9

10

9

7

14

15

13

10

JobEvaluation

Level

8

7

6

3

8

8

8

8

7

6

13

14

12

9

Table 4.4 - Profile of Employees whose salary level exceed the grade determinedby Job Evaluation

Beneficiaries

Female

Male


African

48

76

124

Coloured

4

8

12

Indian

2

3

5

White

22

16

38

Total

76

103

1795

5. Employment ChangesTurnover rates provide an indication of trends in the employment profile of the Department. The following tables provide asummary of turnover rates by salary band (Table 5.1) and by critical occupations (Table 5.2).

Table 5.1 - Annual Turnover rates by Salary BandSalary Band


Skilled (3 - 5)



SMS (Level 13-16)

Total

Number ofEmployees on1 April 2008

194

904

1 512

838

91

3 539

Appointments andTransfers into the

Dept

32

310

1 462

147

9

960

Terminations andTransfers out of the

Dept

9

61

167

108

12

357

Turnover Rate

4.64

6.75

11.04

12.89

13.19

10.09


Table 5.2 - Annual Turnover rates by Critical OccupationCritical Occupation

Architects





Legal Related

Social Sciences

Other

Total

Number ofEmployees on1 April 2008

12

261

161

629

352

58

78

1 988

3 539

Appointments andTransfers into the

Dept

3

69

118

21

127

32

195

395

960

Terminations andTransfers out of the

Dept

1

3

12

22

13

9

19

278

357

Turnover Rate%

8.33

1.15

7.45

3.50

3.69

15.52

24.36

13.98

10.09

Table 5.3 - Reasons why staff are leaving the DepartmentTermination Type

Death

Resignation

Expiry of Contract

Dismissal - operational changes

Dismissal - misconduct

Dismissal - inefficiency

Discharged due to ill-health

Severance Packages

Retirement

Transfer to other Departments

Total

Total number of employees who left as a % of the total employment

Number

15

173

80

-

5

-

1

14

19

50

357

Percentage of Total Resignations

4.20

48.46

22.41

-

1.40

-

0.28

3.92

5.32

14.01

100.00

10.09

Table 5.4 - Promotions by Salary BandSalary Band

Lower skilled(1 - 2)

Skilled (3 - 5)

Highly skilled production(6 - 8)

Highly skilled supervision(9 - 12)

SMS (Level 13 - 16)

Total

Employees as at1 April 2008

194

904

1 512

838

91

3 539

Promotions toanother salary

level

2

180

431

331

13

957

Salary levelpromotions as a %

of employees

1.03

19.91

28.51

39.50

14.29

27.04

Progressions toanother notch

within salary level

96

436

618

306

29

1 485

Notchprogressions as %of employees by

occupation

49.48

48.23

40.87

36.52

31.87

41.96

1 APRIL 2008 - 31 MARCH 2009 129

Table 5.5 - Promotions by Critical OccupationPromotions toanother salary

level

3

44

38

163

43

11

35

620

957

Salary Band

Architects


Cartographic andSurveyors

Community DevelopmentWorkers

General LegalAdministration

Legal Related

Social Sciences

Other

Total

Employees as at1 April 2008

12

261

161

629

352

58

78

1 988

3 539

Salary levelpromotions as a %

of employees

25.00

16.86

23.60

25.91

12.22

18.97

44.87

31.19

27.04

Progressions toanother notch

within salary level

6

83

151

153

178

23

23

891

1 508

Notchprogressions as %of employees by

occupation

50.00

31.80

93.79

24.32

50.57

39.66

29.49

44.82

42.61

6. Employment EquityThe tables in this section are based on the formats prescribed by the Employment Equity Act,1998 (Act No. 55 of 1998).

Table 6.1 - Total number of employees in each of the following categories (SASCO)Occupational Categories

Legislators, Senior Officials andManagers

Professionals

Technicians and AssociatedProfessionals

Clerks

Service and Sales Workers

Craft and related trades workers

Elementary Occupations


African

38

840

249

327

11

21

68

1 55424

Coloured

2

82

25

24

3

2

6

1446

Indian

3

28

3

5

-

1

-

402

Total Black

43

950

277

356

14

24

74

1 738 32

White

14

178

13

13

6

5

1

23020

Total

57

1 128

290

369

20

29

75

1 96852

Male

Occupational Categories


Professionals


Clerks



Elementary Occupations


African

27

691

214

506

4

3

53

1 498 18

Coloured

2

91

37

58

1

2

13

2044

Indian

3

32

12

11

-

-

-

581

Total Black

32

814

263

575

5

5

66

1 760 23

White

5

203

98

97

2

3

-

40819

Total

37

1 017

361

672

7

8

66

2 16842

Female


Occupational Bands

Top Management

Senior Management

Professionally qualified and expspecialists

Skilled technical and academicallyqualified workers

Semi-skilled and discretionarydecision making

Unskilled and defined decisionmaking

Total

African

15

28

313

873

292

33

1 554

Coloured

1

2

29

76

30

6

144

Indian

-

4

16

16

4

-

40

Total Black

16

34

358

965

326

39

1 738

White

3

15

103

101

7

1

230

Total

19

49

461

1 066

333

40

1 968

Male

Occupational Bands

Top Management

Senior Management





Total

African

10

19

222

921

304

22

1 498

Coloured

1

1

23

137

42

-

20

Indian

1

2

12

38

4

1

58

Total Black

12

22

257

1 096

350

23

1 760

White

-

6

67

327

8

-

408

Total

12

28

324

1 423

358

23

2 168

Female

Table 6.2 - Total number of employees in each of the following occupational bands

Occupational Bands

Top Management

Senior Management






African

1

2

47

209

116

17

3927

Coloured

-

-

4

1

7

-

12-

Indian

-

-

2

4

3

-

9-

Total Black

1

2

53

214

126

17

4137

White

-

-

4

-

-

-

4-

Total

1

2

57

214

126

17

4177

Male

Table 6.3 - Recruitment

1 APRIL 2008 - 31 MARCH 2009 131

Occupational Bands

Top Management

Senior Management






African

-

2

23

143

118

13

2993

Coloured

-

-

2

5

5

-

12-

Indian

-

-

1

2

-

-

3-

Total Black

-

2

26

150

123

13

3143

White

-

-

1

1

1

-

3-

Total

-

2

27

151

124

13

3173

Female

Occupational Bands

Top Management

Senior Management






African

1

3

139

133

85

-

3616

Coloured

-

-

9

24

16

-

493

Indian

-

-

4

2

-

-

6-

Total Black

1

3

152

159

101

-

4169

White

-

2

17

10

6

-

352

Total

1

5

169

169

107

-

45111

Male

Occupational Bands

Top Management

Senior Management






African

-

6

97

144

63

2

3126

Coloured

-

-

13

38

9

-

602

Indian

-

1

8

9

-

-

18-

Total Black

-

7

118

191

72

2

3908

White

-

-

44

71

1

-

1165

Total

-

7

162

262

73

2

50613

Female

Table 6.4 - Promotions


Occupational Bands

Top Management

Senior Management






African

2

-

43

38

15

4

102-

Coloured

-

2

4

7

5

-

18-

Indian

-

-

-

3

-

-

3-

Total Black

2

2

47

48

20

4

123-

White

-

1

7

14

-

-

22-

Total

2

3

54

62

20

4

145-

Male

Occupational Bands

Top Management

Senior Management






African

-

5

22

45

20

2

94-

Coloured

-

-

5

2

5

-

12-

Indian

-

-

4

2

-

-

6-

Total Black

-

5

31

49

25

2

112 -

White

-

-

4

43

3

-

50-

Total

-

5

35

92

28

2

162-

Female

Table 6.5 - Terminations

Disciplinary Action

Correctional Counseling

Verbal Warning

Written Warning

Serious Written Warning

Final Written Warning

Suspended without pay

Fine

Demotion

Dismissal

Not guilty

Case withdrawn


African

1

-

-

-

1

-

-

-

1

-

-

3 -

Coloured

-

-

-

-

-

-

-

-

-

-

-

--

Indian

-

-

-

-

-

-

-

-

-

-

-

- -

Total Black

1

-

-

-

1

-

-

-

1

-

-

3-

White

-

-

-

-

-

-

-

-

-

-

-

- -

Total

1

-

-

-

1

-

-

-

1

-

-

3-

Male

Table 6.6 - Disciplinary Action

1 APRIL 2008 - 31 MARCH 2009 133

Disciplinary Action


Verbal Warning

Written Warning

Serious Written Warning



Fine

Demotion

Dismissal

Not guilty

Case withdrawn


African

-

-

-

-

-

-

-

1

1

-

-

2-

Coloured

-

-

-

-

-

-

-

-

-

-

-

- -

Indian

-

-

-

-

-

-

-

-

-

-

-

- -

Total Black

-

-

-

-

-

-

-

1

1

-

-

2 -

White

-

-

-

-

-

-

-

-

-

-

-

- -

Total

-

-

-

-

-

-

-

1

1

-

-

2-

Female

Table 6.7 - Skills Development (%)Occupational Categories


Professionals


Clerks

Service Workers


Plant and machine operators andassemblers

Labourers and related workers


African

32

603

166

292

-

8

-

99

1 200 24

Coloured

3

56

28

38

-

1

-

14

1406

Indian

-

20

3

7

-

1

-

-

312

Total Black

38

678

197

337

-

10

-

113

1 373 32

White

14

178

12

20

-

6

-

5

23520

Total

52

856

209

357

-

16

-

118

1 60852

Male



Professionals


Clerks

Service Workers


Plant and machine operators andassemblers

Labourers and related workers


African

22

487

170

486

-

1

-

60

1 226 18

Coloured

3

50

43

90

-

1

-

15

202 4

Indian

2

23

15

19

-

1

-

-

601

Total Black

27

560

228

595

-

3

-

75

1 488 23

White

6

164

124

146

-

2

-

-

442 19

Total

33

724

352

741

-

5

-

75

1 93042

Female


7. Performance RewardsTo encourage excellent performance, the Department has granted the following performance rewards during the year under review.The information is presented in terms of race, gender and disability (Table 7.1), salary bands (Table 7.2) and critical occupations(Table 7.3).

Table 7.1 - Performance Rewards by race, gender and disability

Average Costper Employee

14.134

16.167

21.222

12.056

15.082

20.000

14.739

16.634

25.150

37.533

19.81018.079

Cost(R'000)

4 862

4 834

573

217

1 463

1 320

6 898

6 371

6 891

4 504

24 664687

% of Total withingroup

22.14

19.96

18.75

8.82

242.50

113.79

26.93

21.76

119.13

29.41

30.1040.43

Total number ofemployees

1 554

1 498

144

204

40

58

1 738

1 760

230

408

4 136 94

Number ofBeneficiaries

344

299

27

18

97

66

468

383

274

120

1 24538

Race, Gender and Disability

African Male

African Female

Coloured Male

Coloured Female

Indian Male

Indian Female

Total Blacks, Male

Total Blacks, Female

White Male

White Female

TotalEmployees with disabilities

Beneficiary Profile Cost


45.000

26.369

11.737

19.061

24.087

81.971

34.864

14.577

20.362

Cost(R'000)

135

2 716

1 338

2 192

7 515

2 787

767

7 901

25 351


10.00

57.54

37.75

13.94

35.74

26.56

20.75

32.01

30.10


30

179

302

825

873

128

106

1 693

4 136


3

103

114

115

312

34

22

542

1 245

Critical Occupations

Architects





Legal Related

Social Sciences

Other

Total



8.636

9.317

15.217

36.226

19.697

Cost(R'000)

95

1 733

11 443

11 882

25 153


17.74

26.88

33.44

31.91

31.68


62

692

2 249

1 028

4 031


11

186

752

328

1 277

Salary Bands


Skilled (3 - 5)



Total


Table 7.2 - Performance Rewards by Salary Band below SMS

Table 7.3 - Performance Rewards by Critical Occupations

1 APRIL 2008 - 31 MARCH 2009 135


39.600

-

-

-

39.600

Cost(R'000)

198

-

-

-

198


6.67

-

-

-

4.76


75

19

10

1

105


5

-

-

-

5

Salary Bands

Band A

Band B

Band C

Band D

Total


Table 7.4 - Performance Rewards by Salary Band for SMS

8. Foreign Workers The tables below summarise the employment of foreign nationals in the Department in terms of salary bands and by majoroccupation. The tables also summarise changes in the total number of foreign workers in each salary band and by each majoroccupation.

Table 8.1 - Foreign Workers by Salary BandSalary Band


Skilled (3 - 5)



SMS

Total

Number

-

-

-

2

1

3

% of Total

-

-

-

66.67

33.33

100.00

Number

-

-

-

3

-

3

% of Total

-

-

-

100.00

-

100.00

Number

-

-

-

(1)

1

-

% of Total

-

-

-

-33.33

33.33

-

01 April 2008 31 March 2009 Change

Major Occupation



Community Develop Workers

Social Sciences

Other

Total

Number

-

-

-

-

3

3

% of Total

-

-

-

-

100.00

100.00

Number

-

-

-

-

3

3

% of Total

-

-

-

-

100.00

100.00

Number

-

-

-

-

-

-

% of Total

-

-

-

-

-

-

01 April 2008 31 March 2009 Change

Table 8.2 - Foreign Workers by Major Occupation

9. LeaveThe Public Service Commission (PSC) identified the need for careful monitoring of sick leave within the Department. The followingtables provide an indication of the use of sick leave (Table 9.1) and disability leave (Table 9.2). In both cases, the estimated cost ofthe leave is also provided.

Table 9.1 - Sick Leave, 1 January 2008 to 31 December 2008Salary Band


Skilled (3 - 5)



SMS

Total

Total Days

303

3 552

11 734

4 524

350

20 463

% Days withMedical

Certification

70.30

74.44

74.42

76.81

76.29

74.92

Number ofEmployeesusing Sick

Leave

54

531

1 602

695

56

2 938

% of TotalEmployeesusing Sick

Leave

27.98

53.91

86.41

73.62

52.83

71.97

AverageDays PerEmployee

6

7

7

7

6

7

EstimatedCost

(R'000)

54

791

4 546

4 170

780

10 341


Salary Band


Skilled (3 - 5)



SMS

Total

Total Days

-

63

892

315

37

1 307

% Days withMedical

Certification

-

100.00

100.00

100.00

100.00

100.00

Number ofEmployeesusing Sick

Leave

-

4

19

16

4

43

% of TotalEmployeesusing Sick

Leave

-

0.41

1.02

1.69

3.77

1.05

AverageDays PerEmployee

-

16

47

20

9

30

EstimatedCost

(R'000)

-

15

374

234

29

652

Table 9.2 - Incapacity Leave, 1 January 2008 to 31 December 2008

Table 9.3 - Annual Leave, 1 January 2008 to 31 December 2008Salary Band


Skilled (3 - 5)



SMS

Total

Total Days

980

12 119

44 474

21 225

2 108

80 906

Average Days Per Employee

5

12

24

22

20

20

Total number of employeesin salary band

193

985

1 854

944

105

4 081

Salary Band


Skilled (3 - 5)



SMS

Total

Total Days of Capped Leavetaken

5

149

604

213

45

1 016

Average number of daystaken per employee

5.00

7.45

5.08

4.26

4.09

5.05

Total number of employeeswho took Capped Leave

1

20

119

50

11

201

Table 9.4 - Capped Leave, 1 January 2008 to 31 December 2008

Table 9.5 - Leave PayoutsReason

Capped leave payouts on termination of service for 2007/2008

Current leave payouts on termination of service for 2007/2008

Total

Averagepayment per

Employee

17.147

10.957

15.825

Number ofEmployees

265

101

366

Total Amount

2 502

759

3 261

1 APRIL 2008 - 31 MARCH 2009 137

10. HIV/AIDS and Health Promotion ProgrammesTable 10.1 - Steps taken to reduce the risk of occupational exposure

Units/categories of employees identified to be at high risk of contracting HIV & relateddiseases (if any)

None

Key steps taken to reduce the risk

None

Table 10.2 - Details of Health Promotion and HIV/Aids Programmes(tick the applicable boxes and provide required information)

Question

1. Has the department designated a member of the SMSto implement the provisions contained in Part VI E ofChapter 1 of the Public Service Regulations, 2001? Ifso, provide her/his name and position.

2. Does the Department have a dedicated unit or haveyou designated specific staff members to promote thehealth and well being of your employees? If so,indicate the number of employees who are involved inthis task and the annual budget that is available forthis purpose.

3. Has the Department introduced an EmployeeAssistance or Health Promotion Programme for youremployees? If so, indicate the key elements/services ofthis Programme.

4. Has the Department established (a) committee(s) ascontemplated in Part VI E.5 (e) of Chapter 1 of thePublic Service Regulations, 2001? If so, please providethe names of the members of the committee and thestakeholder(s) that they represent.

5. Has the Department reviewed the employmentpolicies and practices of your Department to ensurethat these do not unfairly discriminate againstemployees on the basis of their HIV status? If so, listthe employment policies/practices so reviewed.

6. Has the Department introduced measures to protectHIV-positive employees or those perceived to be HIV-positive from discriminations? If so, list the keyelements of these measures.

7. Does the Department encourage its employees toundergo Voluntary Counseling and Testing? If so, listthe results that have been achieved.

8. Has the Department developed measures/indicatorsto monitor and evaluate the impact of your healthpromotion programme? If so, list thesemeasures/indicators.

Detail, if yes

Mr T Mogashoa, Director: HRM

Employee Wellness Subdirectorate: Deputy Director,2 Assistant Directors and 1 Admin Officer.

Employee Wellness Programme: Policy has beendeveloped, Psycho-social services, Health Promotion:Wellness days & Flu vaccine, Life skills: Stress & Change,Financial Fitness and HIV & AIDS

9 Provincial HIV/AIDS Committees have beenestablished.

Performance management, Labour Relations, LeavePolicy, Recruitment & Selection, Basic conditions ofService, HIV/AIDS & Employee Wellness Policies.

HIV/AIDS Programme is being implemented, and HIVtraining conducted to staff and managers. Applicationof reasonable accommodation allowing access topsycho-social and medical services.

This is incorporated with Wellness day events every yearResults from 9 Provinces indicated 30% uptake.

Monthly Statistical reports, Quarterly Reports. Clientfeedback surveys.Road-shows give employees an opportunity to givefeedback on interventions.

Yes

X

X

X

X

X

X

X

X

No


11. Labour Relations The following tables summarise the outcome of disciplinary hearings conducted within the Department for the year under review.

Table 11.1 - Collective Agreements

Subject Matter

None

Total collective agreements

Date

Table 11.2 - Misconduct and Discipline Hearings finalisedOutcomes of Disciplinary Hearings


Verbal Warning

Written Warning



Fine

Demotion

Dismissal

Not guilty

Case withdrawn

Total

Number

1

-

-

1

-

-

1

2

-

-

5

% of Total

20.00

-

-

20.00

-

-

20.00

40.00

-

-

100.00

Table 11.3 - Types of misconduct addressed at Disciplinary HearingsType of misconduct

Abuse of state vehicle

Assault/Foul Language

Theft/Fraud

Abuse of internet

Unauthorised absenteeism/Late coming

Drunk on Duty

Unauthorised remunerative work outside Public Service

Failure to adhere to Travel Policy

Total

Number

-

-

4

-

-

1

-

-

5

% of Total

-

-

80.00

-

-

20.00

-

-

100.00

Table 11.4 - Grievances lodgedGrievances

Number of grievances resolved

Number of grievances not resolved

Total number of grievances lodged

Number

30

8

38

% of Total

78.95

21.05

100.00

Table 11.5 - Disputes lodged with CouncilsDisputes

Number of disputes upheld

Number of disputes dismissed

Total number of disputes lodged

Number

8

6

14

% of Total

57.14

42.86

100.00

1 APRIL 2008 - 31 MARCH 2009 139

Table 11.6 - Strike Actions

Total

-

-

-

Strike Actions

Total number of person working days lost

Total cost (R'000) of working days lost

Amount recovered as a result of no work no pay

Table 11.7 - Precautionary Suspensions

Total

7

6

42

125

Precautionary Suspensions

Number of people suspended

Number of people whose suspension exceeded 30 days

Average number of days suspended

Cost (R'000)

12. Skills DevelopmentThis section highlights the efforts of the Department with regard to skills development for the year under review.

Table 12.1 - Training Needs Identified



Professionals

Technicians and associatedProfessionals

Clerks


Craft and related trade workers

Plant and machine operators &assemblers

Elementary occupations

Sub Total

Total

Gender

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Number ofEmployees

01 April 2008

33

52

724

857

352

209

741

357

0

0

5

16

0

0

75

118

1 930

1 609

3 539

Learnerships

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

SkillsProgrammes &short courses

30

65

730

650

365

602

839

714

0

0

0

3

0

0

87

123

2 051

2 157

4 208

Other forms ofTraining

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

30

65

730

650

365

602

839

714

0

0

0

3

0

0

87

123

2 051

2 157

4 208

Training needs identified at start of Reporting Period




Professionals

Technicians and associatedProfessionals

Clerks


Craft and related trade workers

Plant and machine operators &assemblers

Elementary occupations

Sub Total

Total

Gender

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Number ofEmployees

01 April 2008

33

52

724

857

352

209

741

357

0

0

5

16

0

0

75

118

1 930

1 609

3 539

Learnerships

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

SkillsProgrammes &short courses

30

65

730

650

365

602

839

714

0

0

0

3

0

0

87

123

2 051

2 157

4 208

Other forms ofTraining

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

30

65

730

650

365

602

839

714

0

0

0

3

0

0

87

123

2 051

2 157

4 208

Training needs identified at start of Reporting Period

Table 12.2 - Training Provided

13. Injury on DutyThe following table provides the basic information on injury on duty for the Department in the year under review.

Table 13.1 - Injury on DutyNature of injury on duty

Required basic medical attention only

Temporary Total Disablement

Permanent Disablement

Fatal

Total

Number

12

-

-

-

12

% of Total

100.00

-

-

-

100.00

1 APRIL 2008 - 31 MARCH 2009 141

14. Utilisation of ConsultantsTable 14.1 - Report on consultant appointments using appropriated funds

Project Title

Advertisement

Advisory Consulting Services

Appointment of Service Providers

Appointment of a Specialist

Appointment of Temporary Workers

Catering Services

Development of Land Reform Framework

Electrical Repairs

Extension of Storage with Relocation

Extension of Contract

Land Surveys

Legal Representative

Mentorship

Office Cleaning Services

Personnel Agency Fees

Projector's Maintenance Fee

Equipment

Request for additional quantities

Security Guarding Services

Update Valuation Reports

Valuations of Land

TOTAL

Total number ofConsultants thatworked on the

Project

1

74

16

1

214

2

1

2

1

3

2

1

2

1

2

1

3

2

1

5

546

881

Contract Value inRand('000)

11

6,010

3,796

354

9,152

4

45

16

13

159

55

6

713

2

87

23

71

50

93

261

15,217

36,138

In addition to the above, the Department also made use of:

� Business advisory services .......................................R74,763,439.54

� Contractors ............................................................R13,253,465.17; and

� Agency and Support/Outsourced Services ...............R48,157,673.82

land

aff

airs


abbreviations& acronyms

AFREF - African Geodetic ReferenceFrame

AgriSETA - Agricultural Sector EducationTraining Authority

AMR - Asset Management ReformsARC - Agricultural Research Council

BLM - BloemfonteinBoG - Balance of GrantBPRS - Batho-Pele Revitalisation

StrategyBSc - Bachelor of Science

CBO - Community BasedOrganisation

CCTV - Closed-Circuit Television CEC - Committee for Environmental

Coordination CEIMP - Consolidated Environmental

Implementation ManagementPlan

CLaRA - Communal Land Rights ActCOMG - Commonage GrantCOO - Chief Operations OfficerCRM - Client Relations ManagementCT - Cape TownCTH - Cheadle Thompson and

Haysom

DBSA - Development Bank ofSouthern Africa

DCS - Document Copy SystemDDF - Departmental Disability Forum DLA - Department of Land AffairsDPSA - Department of Public Service

and Admnistration

EC - Eastern CapeECPLRO - Eastern Cape Provincial Land

Reform Office

EWP - Employee WellnessProgramme

EXP - Experienced

FICA - Financial Intelligence CentreAct

FSPLRO - Free State Provincial LandReform Office

GAAP - General Accepted AccountingPractice

GCCN - Government CommonControlled Network

GCIS - Government CommunicationsInformation System

GIS - Geographic InformationSystems

GPLRO - Gauteng Provincial LandReform Office

GPS - Global Positioning System

HIV - Human Immune Virus HIV/AIDS - Human Immune Virus/

Acquired Immune DeficiencySyndrome

HR - Human ResourceHRD - Human Resource

DevelopmentHRM - Human Resource

Management

ICS - Image Copy SystemICT - Information and

Communication TechnologiesIDP - Integrated Development Plan

JE - Job EvaluationJHB - Johannesburg

land a

ffair

s

1 APRIL 2008 - 31 MARCH 2009 143

KAPP - Knowledge, Attitude, Perceptions andPractice

Km2 - Square KilometreKWT - King Williams TownKZN - KwaZulu-Natal KZNPLRO - KwaZulu-Natal Provincial Land Reform Office

LARP - Land and Agrarian Reform ProgrammeLCC - Land Claims CommissionerLPLRO - Limpopo Provincial Land Reform OfficeLRAD - Land Redistribution for Agricultural

DevelopmentLUMA - Land Use Management ActLUMB - Land Use Management Bill

M&E - Monitoring and Evaluation MISS - Minimum Information Security StandardMPLRO - Mpumalanga Provincial Land Reform OfficeMSP - Master Systems PlanMTEF - Medium Term Expenditure Framework

NCPLRO - Northern Cape Provincial Land Reform OfficeNEPAD - New Partnership for Africa’s DevelopmentNGO - Non Governmental OrganisationNWPLRO - North West Provincial Land Reform Office

ODG - Office of the Director-GeneralOHS - Occupational Health and Safety

PFMA - Public Finance Management ActPLAS - Pro-active Land Acquisition StrategyPLOF - Policy on Land Ownership by ForeignersPLRO - Provincial Land Reform OfficePLSS - Public Land Support ServicesPLST&ST - Professional Land Surveyors in Training and

Surveyor Technicians PMB - PietermaritzburgPPP - Private Public PartnershipPSC - Public Service Commission

RCMRD - Regional Centre for Mapping of Resource forDevelopment

RFP - Request For ProposalRFQ - Request for Qualification

SACPLAN - South African Council for PlannersSADC - South African Development CommunitySADT - South African Development TrustSAPS - South African Police ServiceSASSA - South African Social Security AgencySCM - Supply Chain ManagementSCOPA - Standing Committee on Public AccountsSDF - Spatial Development FrameworkSDI - Spatial Data Infrastructure Act SDIP - Service Delivery Improvement Plans SG - Surveyor GeneralSGP - Settlement Growth PatternsSITA - State Information Technology Agency SLA - Service Level AgreementSLAG - Settlement Land Acquisition GrantSMD - Spatial MetaData Discovery SMS - Senior Management ServicesSPLAG - Settlement and Production Land Acquisition

Grant

TRANCRAA - Transformation of Certain Rural Areas ActTUT - Tshwane University of Technology

UNISA - University of South Africa

VPN - Virtual Private Network

WAN - Wide Area NetworkWC - Western CapeWCPLRO - Western Cape Provincial Land Reform Office

YARD - Youth in Agriculture and Rural Development

N O T E S

Department of Land Affairs Annual Report 2008/09 · 2018-12-09 · land affairs RP171/2009 ISBN: 978-0-621-38767-4 Submission of Annual Report to the Executive Authority I have the

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