SCOPA REVIEW 2008-2009 ANNUAL REPORT OF THE “DEPARTMENT OF LAND AFFAIRS” PUBLIC HEARING

SCOPA REVIEW

2008-2009 ANNUAL REPORT OF THE

“DEPARTMENT OF LAND AFFAIRS”

PUBLIC HEARING V454, OLD ASSEMBLY, CAPE TOWN, PARLIAMENTWEDNESDAY 17 MARCH 2010 : 09H00

MR T T GWANYAACCOUNTING OFFICER

Wednesday, 17 March 2010

INTRODUCTION… The Annual Report of the Department of

Land Affairs for 2008-2009 was presented to the Portfolio Committee on Rural Development and Land Reform on 21 October 2009.

The focus of this presentation is on progress made on the audit issues raised and financial performance.

The Department received qualification on: Completeness and accuracy of rental revenue

receivable from leased land; Completeness and rights of immovable property.

2Wednesday, 17 March 2010

INTRODUCTION Emphasis of matter was also received as

follows: Fruitless and wasteful expenditure Irregular expenditure

Other matters not affecting the audit report are: Accruals exceeding 30 days payment terms Section 78(2A) of the Attorneys Act, 1979

(Act No 53 of 1979) for money held in trust on behalf of the Department.

Internal control deficiencies3Wednesday, 17 March 2010

FINANCIAL PERFORMANCE

The Department has achieved spending of 99.9% (2007/08: 99.5%) against the adjusted appropriation of R6.6 billion for

the year under review.


2008/09

R’000

2007/08

R’000

Budget allocation 6,659,396 5,928,269

Actual Expenditure 6,654,636 5,897,497

Spending as a percentage 99.9% 99.5%

Unspent funds 4,760 30,772

Unspent funds as a percentage

0.1% 0.5%

SPENDING PER PROGRAMME


PROGRAMME 2008/2009 2007/2008

Final

Appropriation

R’000

Spending

31/03/09

R’000

Variance

R’000

Spent

%

Final

Appropriation

R’000

Spending

31/03/09

R’000

Spent

%

Programme 1:

Administration 45,3442 45,3316 126 99,9% 426,554 424,994 99,6%

Programme 2:

Surveys & Mapping 7,2044 71,875 169 99,8% 98,085 97,257 99,1%

Programme 3:

Cadastral Surveys 116,384 11,6306 78 99,9% 137,937 137,616 99,7%

Programme 4 :

Restitution 3,124,781 3,122,148 2,633 99,9% 3,638,611 3,638,465 100%

Programme 5:

Land Reform 2,800,713 2,799,539 1,174 99,9% 1,593,471 1,571,073 98,6%

Programme 6:

Spatial Planning & Information 34,834 34,256 578 98,3% 22,018 21,836 99,15%

Programme 7:

Auxiliary & Associated Services 57,198 5,7196 2 100% 11,593 6,256 53,9%

TOTAL 6,659,396 6,65,4636 4,760 99,9% 5,928,269 5,897,497 99.5%

PERSONNEL ESTABLISHMENT AND

VACANCY RATIOS


PROGRAMME Number of posts Number of posts filled

Vacancy Rate %

Programme 1: Administration 844 734 13.0%

Programme 2: Surveys & Mapping 246 193 21.5%

Programme 3: Cadastral Surveys 607 526 13.3%

Programme 4 : Restitution 991 812 18.0%

Programme 5: Land Reform 1042 906 13.0%

Programme 6: Spatial Planning & Information 108 76 29.6%

Programme 7: Deeds Trading Account 1267 1119 11.6%

TOTAL 5105 4366 14.4%

SUMMARY There has been a steady decrease in the vacancy rate:

- 2006-2007 27.41%- 2007-2008 22.68%- 2008-2009 16.70%- March 2010 14.47%

The post of Chief Financial Officer, Supply Chain and Financial Management Executives were filled and the incumbents commenced duty on 01 March 2010

16 critical senior management (SMS) posts were filled in 2009-2010

The filling of posts are closely monitored through weekly reports

7


AUDIT REPORT FOR THE FINANCIAL YEAR 2008-2009 Progress on the completeness and accuracy of

lease revenue receivable Lease Debtors policy was implemented from 01

April 2009 A single database is now used to store all lease

contracts Recalculations were done on expected revenue and

statements were sent out to the lessees to acknowledge debt

It is expected that the lease revenue database will be completed before the 2010/11 financial year end.

8


AUDIT REPORT FOR THE FINANCIAL YEAR 2008-

2009 Progress on the completeness and accuracy of

lease revenue receivable The Power of Attorney (POA) has been withdrawn

since September 2009 New contracts, where appropriate, have been

signed and payments have been received from some of the provincial departments.

Verification of balances with provincial departments has been done and discrepancies identified are being analysed.

9


AUDIT REPORT FOR THE FINANCIAL YEAR 2008-2009

Progress on immovable assets The register for immovable property purchased

through Land Reform and Restitution projects is available and complete.

There is still a challenge on immovable property which previously vested in the South African Development Trust and homelands (self governing territories and TBVC states).

10


2009 Completeness of asset register

The Department does not have all its properties in the asset register since the bulk of land in the former homelands remains unsurveyed. All unsurveyed land in the country has recently been

identified. The bulk of unsurveyed land is in the provinces of the

Eastern Cape, Limpopo, Mpumalanga, North West and KwaZulu-Natal

About 70% of the former Transkei has been surveyed and the remaining administrative districts are currently being surveyed.

Research is being done on the possibility of framing diagrams in the former Quitrent areas of the former Ciskei.



2009 A national vesting master plan has been

developed in conjunction with the Department of Public Works and Provincial Governments.

This plan provides for the completion of surveying by March 2012 and vesting by March 2014.

Once surveying and vesting are done, the immovable asset register of the Department will be complete.

The DRDLR is seeking the extension of exemption from the AG, based on the Master Plan


12

AUDIT REPORT FOR THE FINANCIAL YEAR 2008-2009

Emphasis of Matter: Non-compliance Fruitless and wasteful expenditure

The fruitless and wasteful expenditure was disclosed as at 31 March 2010 (Cornucopia, Middleton and Gora)

Investigation has been finalized; SCM to report to DG/NT for condonement

Irregular expenditure As disclosed in note 26 to the financial statement, irregular

expenditure amounting to R74,96 million was incurred due to the amendment of the Provision of Land and Assistance Act, 1993 (Act No 126 of 1993).

SCM was given all reports to start the process of reporting to DG/NT for condonement.


FORMER “DEPARTMENT OF LAND AFFAIRS”


PROGRAMMES

1. Administration

2. Surveys & Mapping

3. Cadastral Surveys

4. Restitution

5. Land Reform

6. Spatial Planning & Information

7. Auxiliary & Associated Services

NEW DEPARTMENTOF RURAL DEVELOPMENT

AND LAND REFORM


PROGRAMMES

1. Administration

2. Geospatial & Cadastral Services

3. Rural Development

4. Restitution

5. Land Reform

THANK YOU!


SCOPA REVIEW 2008-2009 ANNUAL REPORT OF THE “DEPARTMENT OF LAND AFFAIRS” PUBLIC HEARING

Documents

audit report

financial performance

financial year

department of land affairs

land reform104290613

land reform2

annual report of thedepartment

introductionthe annual