1 presentation to the portfolio committee on public works asset register -progress report &...

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PRESENTATIONPRESENTATION TO TO THE THE PORTFOLIO PORTFOLIO COMMITTEECOMMITTEE ON PUBLIC WORKS ON PUBLIC WORKS

ASSET REGISTERASSET REGISTER-- PROGRESS REPORTPROGRESS REPORT

&&PROGRESS: ROLL OUT OF GIAMAPROGRESS: ROLL OUT OF GIAMA

23 AUGUST23 AUGUST 2011 2011

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CONTENTCONTENT

1. Purpose

2. Background of Asset Register

3. Status report – Asset Register

4. Interventions

5. Collaboration with Stakeholders

6. Challenges / problems facing Asset Register

7. Desired Future State

8. Status report – GIAMA Implementation in provinces

9. Extension of GIAMA to Local Government

10. Development of Immovable Asset Life Cycle Management Guideline

11. Challenges facing the implementation of GIAMA

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1.1. PURPOSEPURPOSE

The purpose of this presentation is to:

• discuss the Asset Register in more detail including providing status, progress and challenges towards a complement and accurate asset register;

• provide progress report on GIAMA implementation at Provincial Sphere of Government; and

• provide progress report on the development of Immovable Asset Management Life Cycle Guidelines.

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2. BACKGROUND FOR ASSET REGISTER2. BACKGROUND FOR ASSET REGISTER

• Prior 1994, there was not comprehensive computer-based register of state-owned immovable assets.

• In 1995 -1999 Dpw commenced with the compilation of a comprehensive computer-based inventory of immovable assets under the control of both National and Provincial Governments.

The information that was gathered included:

Physical address of properties; Cadastral description and extent of land parcels; Utilisation and users of properties; Zoning and potential use of properties

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BACKGROUND FOR ASSET REGISTER….contBACKGROUND FOR ASSET REGISTER….cont

• In March 2008, DPW completed the Asset Register Enhancement Programme (AREP)

• The scope of the project focused on 33 555 immovable assets focusing on :

Linking of land parcels with improvements; Measuring floor areas of buildings where it was not

included Establishing use and identity of occupants; Capturing servitude rights over selected state properties;

and Capturing photographs, drawings and footprints of

improvements for the selected properties

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BACKGROUND FOR ASSET REGISTER….contBACKGROUND FOR ASSET REGISTER….cont

• The Immovable Asset Register is an accounting tool that serves as a database containing all the physical, financial and legal information regarding the properties and their tenants.

• Additionally, AR informs Asset and Property Management decisions and records the resultant transactions within the various Public Works Departments.

• The iE-Works initiative is aimed at providing a common electronic platform for the National and Provincial Governments’ property portfolios and engagements with Provincial Public Works departments is ongoing.

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3. 3. STATUS REPORTSTATUS REPORT – ASSET REGISTER – ASSET REGISTER

DPW reported 108 562 properties (land and buildings/structures) in the Annual Financial Statements for

2009/2010 instead of 239 594 properties reported in 1999.

The variance between the numbers of properties is as a result of the following:

• Devolution of properties to Provinces in 2008 as agreed with National Treasury;

• Exclusion of land under the custodianship of the Department of Rural Development & Land Reform (DRDLR);

• Alignment with accounting reporting requirements and the continuous update of data in the Asset Register; and

• Information on State-owned buildings was until 2009/10 extracted at tenancy (unit) level, whereas the buildings information for the 2009/10 report was extracted at property level.

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STATUS REPORTSTATUS REPORT – ASSET REGISTER – ASSET REGISTER ….cont….cont

• DPW had 109 323 total number of properties as at 30 June 2011, consisting of 35 834 land parcels and 73 489 improvements;

• 35 834 consists of 10 935 vacant land parcels and 24 899 land with improvements;

• 73 489 consists of 33 069 residential and 40 420 non residential;

• 82% (89 020 properties)-cumulative have been enhanced but not fully complete and accurate in all the information fields;

• New approach to enhance data is done per town per property focusing on all the information fields;

• The monitoring of data enhancement is done on monthly basis.

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LAND AND IMPROVEMENTS BREAKDOWN LAND AND IMPROVEMENTS BREAKDOWN STATSSTATS

33069, 45%

40420, 55%

residential

non residential

10935, 31%

24899, 69%

vacant land

land with improvements

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VESTING PLANVESTING PLAN

a) 35 746 land parcels in DPW’s Asset Register (Strategic Plan baseline);

b) Vesting target for 2011/12: 70% (25022 land parcels);

c) 12 873 (36%) land parcels vested as at 26 May 2011;

d) DRDLR has vested 8407 land parcels as at 26 May 2001;

e) All Provinces vested 17 778 land parcels as at 26 May 2011.

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CUMULATIVE VESTING STATS FOR 2011/12CUMULATIVE VESTING STATS FOR 2011/12

REGION LAND PARCELS

ACQUIRED POST 27

APRIL 1994

TITLE DEED ENDORS

ED

ITEM 28 (1)CERTIFI

CATENOT YET

VESTED

TARGET FOR 2011/20

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TARGET PER

MONTH

Bloemfontein 3277 336 1411 216 1314 750 62

Cape Town 6099 236 98 190 5575 3200 267

Durban 6382 284 114 1367 4617 2800 234

Johannesburg 2454 24 432 192 1806 1100 92

Kimberly 2627 230 224 483 1690 1018 85

Mmabatho 2014 134 0 51 1829 1200 100

Nelspruit 2775 64 272 1 2438 1491 124

Polokwane 3111 4 0 87 3020 1750 146

Port Elizabeth 3225 161 805 119 2140 1350 112

Pretoria 3111 25 0 733 2353 1500 125

Umtata 570 37 58 0 475 475 39

Buiteland/Foreign 101 0 0 0 0 0 0

TOTAL 35746 1535 3414 3439 27257 16634 1386

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CUMULATIVE VESTING STATSCUMULATIVE VESTING STATS AS AT 31 MARCH AS AT 31 MARCH 20112011

1535, 4%3414, 10%

3439, 10%

27257, 76%

acquired 27 April 1994title deed endorseditem 28 (1) certif icatenot yet vested

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Amnesty Call (Operation Bring Back)Amnesty Call (Operation Bring Back)

• Call Centre is operational, however there have been no calls received from the public as a result of lack of awareness campaign and intensified identification of State Immovable Assets that are presumed to be unaccounted for.

• A engagement with SALGA took place on how municipalities can assist in spreading the message to promote public participation.

• The Department will extend the duration of Amnesty initiative with another six months to ensure that the message is spread widely to promote public participation.

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4. INTERVENTIONS4. INTERVENTIONS

• The Department has invited proposals from suitably qualified Programme Manager to manage the Asset Register Enhancement Project. The successful Programme Manager will be required to:

– Reconcile DPW, DRDLR and Provincial Asset Registers and determine interim custodial responsibilities, pending vesting.

– Reconcile national and provincial vesting statistics.

– Conduct a status quo and gap analysis to determine the level of completeness and compliance of the existing DPW Immovable AR to GIAMA, PFMA and GRAP.

– Determine the scope for achieving completeness, accuracy and compliance to GIAMA, PFMA and GRAP.

– Develop comprehensive terms of reference for the enhancement of the Immovable AR by the Secondary Service Provider (SSP) to be appointed by DPW.

– Oversee the Amnesty Initiative “Operation Bring Back” (OBB). The scope of work for the SSP must include the execution and implementation of OBB campaign.

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FURTHER DPW INTERVENTIONS…FURTHER DPW INTERVENTIONS…

• Fast track the vesting of state land for completion by 31 March 2014.

• Intensifying collaboration with provincial and national custodians.

• Strengthen the interaction with the Office of the Surveyor-General regarding the surveying of state land and Deeds Office (DRDLR).

• Finalising the draft Sector Specific Guide on Immovable Assets and Asset Register Requirements information on immovable assets.

• Proposed structure to capacitate ARM and regions.

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5. COLLABORATION WITH STAKEHOLDERS5. COLLABORATION WITH STAKEHOLDERS

• DPW is continuously interacting with the provinces in various forums created to ensure that there is uniformity and best practice in the management of immovable assets:

– MINMEC – Convened on quarterly basis;– CFOs Forum – Convened on quarterly basis;– GIAMA Implementation Technical

Committee – Convened on quarterly basis;– Immovable Asset Task Team – Convened on

monthly basis;– PSLDC – Convened on monthly basis.

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6. CHALLENGES / PROBLEMS FACING THE ASSET 6. CHALLENGES / PROBLEMS FACING THE ASSET REGISTER REGISTER

• Magnitude of the portfolio• Integrated Asset Management and

Property Management system.• Data input and regional and Provincial

Level • Compliance with Generally Recognised

Accounting Practice (GRAP), PFMA and GIAMA;

• Condition surveys• Capacity constraints

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7. DESIRED FUTURE STATE OF ASSET REGISTER7. DESIRED FUTURE STATE OF ASSET REGISTER

• Vesting be completed on 31 March 2014;• Surveying of state land be completed on 31 March

2013;• Asset Register information fields be completed and

accurate on 31 March 2014;• Condition assessments of all state properties be

completed on 31 March 2014;• Amnesty Initiative to have successfully tested the

public on unaccounted for state immovable assets;• Reconciled the state asset registers on 31 March

2014;• Obtain clean audit on 31 March 2014;• Effective and efficient collaboration with all

Stakeholders;• Fully compliance with GRAP, PFMA, GIAMA and

Immovable Assets Guidelines;

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8. 8. STATUS REPORT ON GIAMA IMPLEMENTATION STATUS REPORT ON GIAMA IMPLEMENTATION IN PROVINCES IN PROVINCES

8.1 Eastern Cape:

a) 12 U-AMPs have been received out of 13 departments. DPW C-AMP is 75% complete and is on track to meet the end August target date;

b) Human Settlement is also a custodian in terms of Housing Board Act. Currently there is no C-AMP for this department;

c) Eastern Cape is the largest holder of state land (37%), as a result they are confronted with the following challenges:

i. Largest pockets of unsurveyed state land;

ii. Slow issuing of item 28(1) certificates by Rural Development;

iii. Unresolved land claims on provincial property.

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STATUS REPORT ON GIAMA IMPLEMENTATION IN STATUS REPORT ON GIAMA IMPLEMENTATION IN PROVINCES … cont PROVINCES … cont

8.2 Free State

a) 10 U-AMPs have been received out of 12 departments. DPW C-AMP is yet compiled due to lack of capacity within the property management section;

b) A custodian forum is not yet established with the other two departments, namely human settlements and local government;

c) Free State is faced with the following challenges:

i. Lack of co-operation from the user departments;

ii. Constant change in the property management section;

iii. Lack of sufficient training to compile asset management plans.

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STATUS REPORT ON GIAMA IMPLEMENTATION IN STATUS REPORT ON GIAMA IMPLEMENTATION IN PROVINCES … contPROVINCES … cont

8.3 Gauteng

a) 11 U-AMPs have been received out of 11 departments. The C-AMP is 50% complete and will be finalized by set target date;

b) Department of Infrastructure Development (DID) is the only custodian in the Gauteng province;

c) Gauteng is faced with the following challenges:

i. Lack of co-operation from the department of local government and housing when it comes to submission of U-AMP;

ii. Slow process in aligning existing property related legislations to GIAMA;

iii. Delays in paying service providers hampers implementation.

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8.4 Kwa Zulu-Natal

a) 12 U-AMPs have been received out of 16 departments. The C-AMP is being developed and should be completed by October;

b) Reviewed KZN Land Admin Act has been sent to cabinet for consideration;

c) KZN is faced with the following challenges:

i. Lack of training on the new 2010 toolkit which can as a result of alignment of GIAMA and IDIP;

ii. Budget and delivery cycle still need to be agreed upon with relevant stakeholders;

iii. Commitment from Treasury in funding needs as per the asset management plan.

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8.5 Limpopo

a) Valuation rolls have been collected from municipalities and the process of capturing values has commenced;

b) No U-AMPs have been received from the 13 user departments. The process of compiling a C-AMP has not yet commenced;

c) No specific unit assigned to manage GIAMA related matters;

d) No provincial user forums have been conducted this year;

e) To address the above challenges, a GIAMA Steering Committee comprising of DPW and Treasury has been established. This committee will be headed by the HOD and will meet twice a month.

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8.6 Mpumalanga

a) 5 U-AMPs have been received out of 12 departments. The process of compiling a C-AMP has not yet started;

b) Rated properties are recorded at municipal values and the rest at R1;

c) Mpumalanga is faced with the following challenges:

i. Lack of co-operation from user departments in submitting required U-AMPs;

ii. Slow process in issuing item 28(1) certificates;

iii. Large number of unsurveyed land which hampers on expediting the vesting process.

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8.7 Northern Cape

a) 4 U-AMPs have been received out of 12 departments. The process of compiling a C-AMP has not yet started;

b) The process of aligning asset/property related legislations has commenced;

c) Northern Cape is faced with the following challenges:


ii. Lack of management support;

iii. Lack of sufficient capacity and resources to implement the Act successfully in the province.

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8.8 North West

a) 3 U-AMPs have been received out of 11 departments. The compilation of a C-AMP is 15% complete;

b) There are two custodians in the province, DPW & HS. A forum has been established and met twice;

c) North West is faced with the following challenges:


ii. Electronic vesting format not functioning as anticipated;

iii. Delay in approval of vesting model by National Treasury.

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8.9 Western Cape

a) 13 U-AMPs have been received out of 14 departments. The compilation of a C-AMP is 25% complete;

b) There are two custodians in the province, DPW & HS. A forum has been established and met twice;

c) Valuations has been recorded at municipal values in the asset register;

d) Started conducting condition assessments on the buildings;

e) Aligned current property management structure to accommodate GIAMA functions;

f) Appointed service provider to assist with the enhancement of the immovable asset register.

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9. EXTENSION OF GIAMA TO LOCAL GOVT

Extension of GIAMA to local government (next steps):

The analysis of three legislations namely, Municipal Systems Act, Municipal Structures Act, Municipal Finance Management Act has been finalized;

Discussions underway with internal stakeholders on the extension of GIAMA to Local Government;

Provinces have started engaging municipalities on the aligned Infrastructure Plans which took GIAMA into consideration;

These aligned Infrastructure Plans have been utilised by provincial departments responsible for public works, education, health and transport to request funding for 2012/13 financial year;

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EXTENSION OF GIAMA TO LOCAL GOVT…cont

Extension of GIAMA to local government (next steps):

e) Drafting of amendment proposals taking into account the analysed legislation impacting on local government;

f) Preparation of Cabinet Memorandum for Minister’s consideration;

g) Submission of Cabinet Memorandum for approval;

h) Start consultation process with the following stakeholders:

National Treasury

Specific Units within the Department of Cooperative Governance and Traditional Affairs

Local government structures.

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10. DEVELOPMENT OF IMMOVABLE ASSET LIFE 10. DEVELOPMENT OF IMMOVABLE ASSET LIFE CYCLE MANAGEMENT GUIDELINECYCLE MANAGEMENT GUIDELINE

a) The department has started developing a guideline to assist with decision making when it comes to the management of immovable assets:

b) This guideline will address two critical questions, what and when?

c) GIAMA enforces an additional step in the immovable asset life cycle which was previously neglected; namely management.

d) The new life cycle will consist of: planning, acquisition, management, maintenance & operation as well as disposals.

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11.11. CHALLENGES FACING THE CHALLENGES FACING THE IMPLEMENTATION OF GIAMAIMPLEMENTATION OF GIAMA

The implementation of GIAMA has experienced generic challenges from all provinces in the following:

a) Lack of capacity and resources;

b) Lack of required funding;

c) Lack of commitment from user departments;

d) Slow issuing of item 28(1) certificates by Department of Rural Development and Land Reform.

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THANK YOU!THANK YOU!

1 presentation to the portfolio committee on public works asset register -progress report &...

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