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Department of Rural Development and Land Reform; Ingonyama Trust; Commission on Restitution of Land Rights on their 2014/15 Annual Reports; Audit outcomes by Auditor-General

A representative of the Auditor-General South Africa (AGSA) briefed the Committee on the audit outcomes and expenditure patters in the rural development portfolio for the 2014/2015 financial year. The quality of submitted financial statements for the Agricultural Land Holding Account (ALHA) was good but needed improvement. The quality of submitted performance reports for Ingonyama Trust Board (ITB) was good but required intervention from the Department of Rural Development and Land Reform (DRDLR or the Department).

The supply chain management for the Deeds Registration Trading Account (Deeds)was good, but, like ITB, it required intervention. Financial health for Deeds was good but showed stagnant or limited progress as human resource management was a concern. Information Technology for DRDLR and Deeds required intervention. Root causes of stagnant or limited progress included the slow response by management in the case of DRDLR, ALHA and ITB in 2014/15 and DRD, and ALHA and Deeds in 2013/14. The 2014-15 DRDLR and ITB reports were considered reliable and useful. There were instances of non-compliance with legislation and with irregular, or fruitless or wasteful expenditure.


The DRDLR had an irregular expenditure of R25.2 million, and ITB showed irregular expenditure of R2.025 million. DRDLR had a fruitless and wasteful expenditure of R6.07 million, ALHA had R60 000 and Deeds R7 000. It was recommended that management should ensure that the root cause of the audit findings was correctly identified to address the controls weakness

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