DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

Overview of the Financial Results of the Department

Departmental Receipts

2021/2022

2022/2023

(Over)/ Under Collection

Actual Amount Collected

Actual Amount Collected

(Over)/ Under Collection

Departmental receipts

Estimate

Estimate

R’000

R’000

R’000

R’000

R’000

R’000

29 260 13 936 15 324 30 664 16 536 14 128

Sale of goods and services other than capital assets Sale of scrap, waste, and other goods Interest, dividends and rent on land

-

2 017 (2 017)

-

-

-

-

35

(35)

-

271

(271)

-

-

-

-

11 378 (11 378) 7 534 (6 727)

Sale of capital assets

770

905

(135)

807

Financial transactions in assets and liabilities

Total

30 030 16 893 13 137 31 471 35 719 (4 248)

Annual revenue target for the year 2022/23 was R31 million; this amount includes disposal of properties amounting to 31% of revenue collected, recoverable revenue related to prior year expenditure, rentals received from commercial and residential properties. To date, the Department collected over R35 million over and above the set target. This implies collection of 113% on the overall projected revenue. Revenue from sale of goods and services consist of rental from dwellings amounting to R12,7 million, non-residential building amounting to R2,3 million, parking collection amounting to R588 000 and R1 million relating to other revenue. The Department has 173 residential and 81 commercial tenants, of which R1,4 million was collected from residential, R8,7 million from commercial properties, and the remaining balance of R2,6 million was paid by tenants whose lease agreements have expired. Commercial properties managed to collect 61% of their targeted revenue compared to 11% that was collected from residential properties. Over collection of revenue is due to 14 properties that were sold through public auction and received R11,3 million. In the prior year, Exco approved a decision to dispose of non-core assets including residential buildings and vacant land. It also relates to the recovery of revenue related to previous year’s expenditure incurred on behalf of the Department of Community Safety, amounting to R7,5 million. Community Safety managed to pay back the money in two tranches for office accommodation in the current financial year. Under collection of revenue for the sale of goods and services is due to the inability to afford rentals by the tenants, especially for residential properties. To date, the Department has issued 429 letters of demand to defaulting tenants; illegal occupation remains one of the key challenges that the Department faces as well as to ensuring the process of sales through auction is completed on time. R2,3 million received from non-res building related to land that was rented out to municipalities and Eskom to build servitude lines. Interest and rent on land related to interest earned on rental for servitude lines.

14

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT