HDA Annual Report

ANNUAL REPORT 2023/24

Programme Achievement 2023/24

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Programme 1

Programme 2

Programme 3

Annual Targets

Targets Achieved Targets Not Achieved

Figure 1: Programme achievement for the 2023/24 financial year As illustrated by Figure 1 above, Programme 2: Land Management and PDAs achieved three out of the five targets planned for the previous financial year. The targets that were not achieved are Indicator 2.1.2 PDA land acquisitions and Indicator 2.1.3 Rezoning of land located within PDA acquired during the 2014-2019 Medium-Term Strategic Framework (MTSF). The targets were not achieved primarily due to factors beyond the direct control of the HDA, such as inconsistent municipal tribunal sittings, funding constraints, delays in the release of priority state land by custodian departments and delays in the approval of recommended and processed private land acquisition proposals by provinces. Financial Performance 49,8 20 15,6 0 100 200 300 400 500 600 Values (R Millions )

surplus. In total, the Agency is reporting a surplus of ±R89,7m before provincial support and ±R80,8m after provincial support. Going Concern and Sustainability The Agency’s annual financial statements were prepared based on accounting policies applicable to a going concern. This basis assumes that there will be funds available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations, and commitments will occur in the ordinary course of business. In administrating financial prudence, the HDA is compliant with legislative requirements such as the Housing Development Act, Public Finance Management Act (PFMA), and National Treasury Instruction Notes. Consequently, our Board and management do not expect any material uncertainty over the Agency’s ability to continue as a going concern in the foreseeable future. 20 569 371 36 0,9 0,021 0,404 0,742 569 371 36 0,9 0,021 0,404 0,742 Years Fruitless Expenditure (M)

Irregular and Fruitless Expenditure

2019/20 2020/21 2021/22 2022/23 2023/24

Irregular Expenditure ( m )

49,8

The HDA generated revenue through appropriations and management fees from provincial departments and metros and improving revenue management by recovering outstanding fees and implementing strict cost-containment measures. The Agency started the 2023/24 financial year with ±R2,6m cash surplus which is due to be declared to the National Treasury after considering payables, provision for audit fees and accruals due at the end of the 2022/23 financial year. Management fees and other recoveries amounting to R51,9m earned by the HDA during the last month of the previous financial year have been excluded from the calculation of the Fruitless Expenditure ( m ) 15,6 Irregular Expenditure (M)

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