DALRRD ANNUAL REPORT 2024/25 FINANCIAL YEAR

slide1. DALRRD ANNUAL REPORT
2024/25 FINANCIAL YEAR

PRESENTATION TO THE PORTFOLIO COMMITTEE

07 OCTOBER 2025<br>
slide2. Presentation Structure Strategic focus
Introduction
DALRRD performance against 2024/25 APP targets
DALRRD performance against 2020/21-2024/25 Strategic Plan
AGSA findings on non-financial performance
Financial performance report
6.1 DALRRD
6.2. ALHA
6.3 DEEDS 2<br>
slide3. 1. Strategic focus 3 3<br>
slide4. 2. Introduction 2024/25 Annual Report Overview
Financial performance at 94.4%; non-financial performance is 83%.
The overall audit outcome of the department is qualified.
Actions plans implemented and closely monitored to address all findings.
A lot was done to improve quality of planning, monitoring, project management and reporting. 4<br>
slide5. IMPORTS AND EXPORTS OF AGRICULTURALPRODUCTS2021–2024 Source: DOA & ITC 5<br>
slide6. AGRICULTURE EMPLOYMENT Source: Stats SA 6<br>
slide7. NON-FINANCIAL PERFORMANCE REPORT

3. Performance against Strategic Objectives, Indicators and 2024/25 Targets 7 7<br>
slide8. 2024/25 APP SCORE CARD 8 8<br>
slide9. TARGETS NOT ACHIEVED 9 9<br>
slide10. TARGETS NOT ACHIEVED 10 10<br>
slide11. TARGETS ACHIEVED 11 11<br>
slide12. TARGETS ACHIEVED 12 12<br>
slide13. TARGETS ACHIEVED 13 13<br>
slide14. TARGETS ACHIEVED 14 14<br>
slide15. TARGETS ACHIEVED 15 15<br>
slide16. TARGETS ACHIEVED 16 16<br>
slide17. TARGETS ACHIEVED 17 17<br>
slide18. 5.AGSA FINDINGS ON NON-FINANCIAL PERFORMANCE. 18 18<br>
slide19. IMPLEMENTATION OF AGSA’S RECOMMENDATIONS ON RELIABILITY

AGSA performed proactive auditing on DOA and DLRRD 2025/26 APP and made some findings on usefulness which have been addressed. The following are some findings obtained regarding reliability of reported information. 19 19<br>
slide20. The following are key with regard to as improvement to address challenges with the RID programme and the AGSA qualification

To address the slow pace of delivery of infrastructure projects which was occasioned by lack of qualified professional infrastructure personnel in the nine provinces, a moratorium in filling of vacant posts by DPSA and National Treasury has been lifted and the process of filling the vacant critical professional infrastructure posts has commenced.

The moratorium that put construction and spending on infrastructure project which delayed construction and completion of projects within contracted timelines has been shifted and a Service Delivery Improvement Plan has been put in place to complete the projects in the 2025/26 and 2026/27 financial years

To address the poor delivery of infrastructure projects, the implementation and management of construction projects has been moved to the Branch Rural Development to ensure close supervision, management and monitoring planning and design and construction of infrastructure projects as well as compliance with the Construction Industry Development Board (CIDB) by built industry qualified Chief Directors within the Branch. This will ensure improve quality of projects and proper reporting. 20<br>
slide21. NON-FINANCIAL PERFORMANCE REPORT

4. Programme Performance and Delivery on Strategic Plans 21 21<br>
slide22. DALRRD 5-YEAR PERFORMANCE TREND The above chat indicates an increase 2% compared to the 2023/24 FY and a significant 24% increase compared to the first year (2020/21) of its establishment. Thus, 83% marks the highest achievement obtain in the past 5 years. 22 22<br>
slide23. MTSF PRIORITY: A CAPABLE, ETHICAL AND DEVELOPMENTAL STATE 23 23<br>
slide24. MTSF PRIORITY: SPATIAL TRANSFORMATION AND EFFECTIVE LAND ADMINISTRATION 24 24<br>
slide25. MTSF PRIORITY: SPATIAL TRANSFORMATION AND EFFECTIVE LAND ADMINISTRATION 25 25<br>
slide26. MTSF PRIORITY: ECONOMIC TRANSFORMATION AND JOB CREATION 26 26<br>
slide27. MTSF PRIORITY: ECONOMIC TRANSFORMATION AND JOB CREATION 27 27 .<br>
slide28. 6. FINANCIAL PERFORMANCE REPORT

6.1.DALRRD AND ALHA BUDGET AND EXPENDITURE TRENDS (2023/24 – 2024/25) 28<br>
slide29. 2 1. Audit outcome
2. Revenue
3. Linking Performance with budgets
4. Budget and Expenditure trends
5. Statement of Financial Performance
6. Statement of Financial Position
7. Compliance Report
8.Audit Improvement plan 29<br>
slide30. 30 . Audit Outcome 30<br>
slide31. 31 Revenue Between 2023/24 and 2024/25, the Department’s revenue grew at an annual average of 2 per cent.
This was mainly due to an increase in Inspection Fees for Statutory Services, Registration of Farm Feeds and Agricultural Remedies and interest of R22, 602 million received when the contract with Mezzanine/VODACOM lapsed.
Increase in Aid Assistance is due to a new EU fund of R130m for economic partnership agreement Receipts: Average growth rate<br>
slide32. 32 Linking performance with budgets Programme 1: Administration has spent R2,995 billion or 98,2% of the allocated funds.
Towards programme 2, R2,543 billion or 99,0% of the allocated funds was spent.
Programme 3: Food Security, Land Reform and Restitution spent R8,521 billion or 92,8% of the allocated funds.
On Programme 4: Rural Development, R590,1 million or 81,7% of the allocated funds was spent.
The total amount spent on Programme 5 amounted to R681,9 million, or 91,6% of the allocated funds.
An amount of R714,1 million was spent on this Programme 6: Land Administration, which is an equivalent of 98,2% of the allocated funds. Linking performance with budgets<br>
slide33. 33 Programme/Branch/Sub Programme Between 2023/24 and 2024/25, the Department’s main budget declined at an annual average of 3 per cent.
The decline was mainly on Programme 4: Rural Development, which decline at an annual average rate of 19 per cent, Programme 5: Economic Development Trade and Marketing and Programme 1: Administration which declined by 8 per cent Budget: Average growth rate<br>
slide34. 34 Economic Classification Between 2023/24 ad 2024/25 average spending against the main budget and the adjusted budget was 96 per cent and 97 per cent respectively.

In 2024/25, the under-expenditure of 6% or R952,5m against the final budget was mainly due to;
vacant posts;
delays in supporting subsistence farmers through the Presidential Employment Stimulus Initiative of change in implementation model to Provincial Departments of Agriculture (PDAs) as well asl PDA experiencing late delivery of ordered items.
delays in finalising land claims settlements due to the slow payment process;
delays in the implementation of rural infrastructure projects as a result of challenges such as community disputes with contractors and rainy weather; and
delays in transferring of AgriBEE funds to the Land Bank as a result of outstanding progress reports. Expenditure against Budget<br>
slide35. 35 STATEMENT OF FINANCIAL PERFOMANCE Trend Analysis Current Expenditure increased by 2% which is attributable to a combination of 5% decrease in COE, because of high salary cost arising from AAP program in 2023/24 and discontinued in 2024/25, 10% growth of goods and services and 88% increase in aid assistance expenditure from R3,8m in 2023/24 to R7,2m in 2024/25.
Transfer and Subsidies saw a decrease of 13% due to significant decline on expenditure on Restitution due to challenges experienced due to change of payment method.(Payment through external bank vs payment through EBT in 2024/25)
Growth of tangible asses of 13% of capital assets due growth in land restoration claims under Land and Sub-soil
An overall 4% decrease in expenditure is mainly due Rural Development and Restitution programs underperforming.
The underperformance in the restitution and rural development contributed to 230% increase in surplus for the year. Surrendered funds amounted to R951m.
Revenue collected and unspent Aid Assistance is also a contribution to increase of funds to be paid to NRF<br>
slide36. 36 STATEMENT OF FINANCIAL POSITION Trend Analysis Department total assets increased due voted funds that needs is surrendered to NRF. Total Liabilities also increased to the liability to National Treasury NRF.
Aid Assistance also increased the liability as any unspent funds are also surrendered
Net assets represent recoverable revenue.<br>
slide37. 37 COMPLIANCE TO PFMA<br>
slide38. 38 COMPLIANCE TO PFMA<br>
slide39. 39 COMPLIANCE TO PFMA<br>
slide40. AUDIT IMRROVEMENT PLAN DALLRD closed the year with having completed 72% of the findings resolved with 13 findings pertaining to ICT. The progress of resolving IT findings is further delayed by the split of the DALLRD, as the two Departments will have to set system of each Department.
A decline in repeat findings was realized in 2024/25 financial year, with six (6) findings repeating in 2024/25
Accrual and Payable (Not material)
SCM-publishing of award on E-tender (Not material)
Supplier in service
Non-Compliance –Payment of 30 days.
Non- Compliance – Consequence Management
Implementation of audit improvement plan has enabled the DALRRD to full deal with completeness issues (material) in the AFS. A net restatement of R2,1b as prior period error due omissions/misstatements identified by the Department
With enhanced reporting, the auditor however picked up new matters mostly arising from transactions that arose from former DRDLR, DAFF and earliest period of DALRRD. 40<br>
slide41. For the DLRRD to avoid qualification, the following high level strategic plan was adopted considering the risks brought by the split for effective for implementation of the audit improvement plan 41 AUDIT IMRROVEMENT PLAN -2024/25<br>
slide42. 42 AUDIT IMRROVEMENT PLAN -2024/25<br>
slide43. 43 AUDIT IMRROVEMENT PLAN -2024/25 (Detailed qualification paragraph<br>
slide44. 44 AUDIT IMRROVEMENT PLAN -2024/25<br>
slide45. 45 AUDIT IMRROVEMENT PLAN -2024/25<br>
slide46. 46 AUDIT IMRROVEMENT PLAN -2024/25<br>
slide47. 47 AUDIT IMRROVEMENT PLAN -2024/25<br>
slide48. 48 AUDIT IMRROVEMENT PLAN -2024/25<br>
slide49. 6.2. AGRICULTURAL LAND HOLDING ACCOUNT (2023/24 – 2024/25) 49<br>
slide50. Table of Content 1. Audit results
2. Annual Financial Statement trends
Financial performance
Financial position
3. Financial Performance and Position
4. Public Finance Management Act (PFMA) Compliance Report
Irregular and Fruitless and Wasteful expenditure
Late/or non-payment of suppliers
5. Audit improvement plans 50<br>
slide51. Audit results 51<br>
slide52. Financial Performance Annual Financial Statement trends 52<br>
slide53. Financial Position Annual Financial Statement trends 53<br>
slide54. Performance Highlights Annual Financial Statement trends ALHA allocates 98% of its cash expenditure budget towards its service delivery programs;
Land Acquisition
Land Development Support
Property Management During the 2024/25 financial year ALHA disbursed funding amounting to R743 651million
R322 380million went to the acquisition of 38 thousand hectares of strategically located land
R258 241million allocated towards commercialisation of 40 projects through Land Development Support
R117 895million was spent on rates and taxes 54<br>
slide55. Statement of Financial Position Total assets increased from R16,195billion in 2023/24 to R16,568billion in 2024/25, driven by several key factors. The rise in cash and cash equivalents reflects grants received from the Department, while the growth in trade receivables (exchange - lease receivable) emanate from new lease contracts signed during the financial year. Additionally, trade receivables (non-exchange - Land Development Support) increased due to slower spending in Grant Farmers Holding Accounts (GHA), and property, plant, and equipment increased following land acquisitions.
Total liabilities increased from R740million in 2023/24 to R782million in 2024/25, primarily due to the settlement of outstanding invoices during the period.
Net assets amount to R15,455billion in 2023/24 and R15,786billion in 2024/25-year end results.
The entity realized a total surplus of R331,116million for the financial year, attributable to slower expenditure in the Land Development Support (LDS) program's farmer grant holding accounts and spending on rates and taxes, regardless of increased contributions from additional properties. These factors contributed positively to the surplus position. 55<br>
slide56. Statement of Financial Performance Government grant refers to the allocation received from DALRRD for the purposes of executing the Land redistribution programs. 2023/24 financial year grant received amounts to R734,942million compared to R855,674million in 2024/25 financial year end.
Total Revenue from exchange decreased to R247,574million from R250,698million as compared to the previous financial year. This is as a result of properties disposed in the current financial year which reduced revenue raised.

Expenditure amounted to R812,624million for 2024/25-year end results as compared to R679,158million in 2023/24 financial year. An increase is as a result of the following:
Increase on disposal resulting from disposal that was done in the current financial year under the State Land transfer program that was approved by the Department.
Increase in impairment which was as a result of an assessment in PPE/assets in comparison to previous year as well as lease impairment increase due to low collection of the outstanding debt.
Increase in the payments of rates and taxes as well as the expenditure raised which relates to the provision contribution for the year. 56<br>
slide57. Irregular expenditure cases Fruitless and wasteful expenditure Public Finance Management Act (PFMA) Compliance Report Fruitless and wasteful expenditure cases are at various stages :
Cases amounting to R140 812million are at recovery stage and in some matters criminal cases were registered whereby investigation is in progress.
Cases amounting to R54 807million are at assessment and determination stage.
Cases amounting to R35 737million were referred to employee relations for implementing consequence management and some matters, criminal cases were registered whereby investigation is in progress. The Trading Entity closed the financial year with a total balance of R481 137million cases. R82 692million worth of transactions were added during the year under review. The cases are at various stages:
Matters referred for recovery and where a criminal case was registered during the current financial year amount to R79 313million.
Matters referred for forensic investigation for suspected fraud or criminal intent amount to R236 489million..
Matters referred to employee relations for consequence management amount to R71 739million.
Matters at assessment and determination stage amount to R82 692million. 57<br>
slide58. Late/or non-payment of suppliers Public Finance Management Act (PFMA) Compliance Report 58<br>
slide59. Audit Improvement Plans 59<br>
slide60. Audit Improvement Plans 60<br>
slide61. 6.3. BRANCH: DEEDS

FINANCIAL AND NON-FINANCIAL PERFORMANCE REPORT
FINANCIAL YEAR 2024/25
PRESENTER: CARLIZE KNOESEN
CHIEF REGISTRAR OF DEEDS

DATE: 07 OCTOBER 2025 61<br>
slide62. DRTE AUDIT OPINION 2018/19 -2024/25 62<br>
slide63. 63<br>
slide64. BRANCH DEEDS: NON-FINANCIAL PERFORMANCE 2024/25The purpose is to provides a deeds registration system in which secure titles are registered, and accurate information is provided; 64<br>
slide65. Executive Summary

The Deeds Registration Trading Entity is a self-funding trading entity generating its own
income, mainly from the registration of deeds and the sale of deeds registration information
and revenue generated represents budget.
eDRS go live for information provisioning module was released for public access. Thus improving access to deeds register and title deed information
In addition 16,911,328 manual records were successfully digitized, enhancing accessibility of records
Alignment of area of jurisdiction of deeds registries in accordance with Provincial and Municipal boundaries has been implemented in Northern Cape and North West
As part of the transformation policy, Deeds has commence the development of the land rights registration bill which seeks to replace the existing deeds registries act 65<br>
slide66. Executive Summary

Revenue
Variances in revenue is due to the fluctuation of interest rate/repo rate that negatively affected economic growth and sales of properties.
The Schedule of Fees is reviewed annually and is the main source of revenue.
Retention of surplus
During the financial years National Treasury has approved the retention of surplus’s
Interest received
The main source of interest received is bank interest on a positive bank balance. The amount received monthly fluctuates depending on the interest rate/repo rate. 66<br>
slide67. 2021-2025 Expenditure vs Revenue trends 67<br>
slide68. IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE 68<br>
slide69. LATE AND/OR NON-PAYMENT OF SUPPLIERS 69<br>
slide70. PROCUREMENT BY OTHER MEANS : ABOVE R1 MILLION REPORTED TO THE NATIONAL TREASURY AND AUDITOR-GENERAL. 70<br>
slide71. THE END THANK YOU 71<br>