structure of the presentation

DEPARTMENT OF HUMAN SETTLEMENTS ANNUAL PERFORMANCE REPORT FOR

THE FINANCIAL YEAR 2012/13

DIRECTOR-GENERAL: T ZULU

STRUCTURE OF THE PRESENTATION1. Performance of the National Department as per Approved Annual

Performance Plans 2012/13

2. Departmental Expenditure vs Performance (Targets/Outcomes)

3. Sector Performance

3.1 Communication and Outreach key

3.2 Delivery Agreement (Outcome 8)

3.3 Job Creation

3.4 Accreditation of Municipalities

4. Financial issues

5. Responses to Audited Outcomes / Action Plan

2

ANNUAL DEPARTMENTAL PERFORMANCE (APRIL 2012 – END MARCH 2013)

• During the 2012/13 financial year we marked the third financial year in which we existed as the department of human settlements and cemented the outcome based approach in line with the National Development Plan.

• The Department has made reasonable strides and progress in setting the delivery framework and systems for the achievement of outcome 8 targets.

• In the Informal Settlement Upgrading Progamme we have improved outputs and have to date provided nearly 190 000 households with upgraded services and secure tenure.

• To ensure that households in the affordable sector increased their ability to access adequate housing, the National Housing Finance Corporation has commenced with the necessary work to activate the Mortgage Default insurance programme.

• The department has also revised the finance linked individual subsidy programme to improve the ability of households in the income category R3 501-R15 000 to access mortgage finance for housing thus increasing access to housing finance and the provision of shelter and basic services.

• The management of the Urban Settlement Grant continued to receive attention in the devolution of powers to the local sphere of government.

• The department went on a massive recruitment drive to implement the turn-around strategy aimed at repositioning the Organization to better discharge its responsibilities in providing integrated and sustainable human settlements.

• The new organizational structure was implemented in line with the approved strategic plan.

• Employee development plans in the context of the performance management system continued to receive attention so as to give meaning to the Departmental Strategy.

• These successes reflect tireless efforts by all stakeholders in the human settlement sector to respond to the challenge of working differently and better. This annual report accounts on this success as implemented through each programme in the Department.

OVERVIEW OF DEPARTMENTAL PERFORMANCE

(APRIL 2012 – END MARCH 2013)

• The overall achievement by the National Department of Human Settlements during the financial year 2012/13 is fifty seven percent (57%).

• Out of one hundred and twenty-eight (128) targets which were planned for the period under review, seventy three (73) targets were achieved whilst fifty five (55) targets were not achieved.

Performance of the National Department as per Approved Annual Performance Plans

2012/13

DEPARTMENTAL EXPENDITURE VS. PERFORMANCE (TARGETS)

8

Programmes Final Allocation Expenditure Variance%

SpentPlanne

d Targets

Achieved Targets

Variance/ Targets

not achieved

% Achieved Targets

1: Administration 340 197 526 257 367 884 82 829 642 76% 25 20 5 80%

2: Human Settlements Delivery Frameworks 41 576 039 33 540 682 8 035 357 81% 12 3 9 25%

3: Human Settlements Strategy And Planning 41 846 287 33 275 460 8 570 827 80% 21 11 10 52%

4: Programme Management Unit 167 709 194 86 521 850 81 187 344 52% 28 15 13 54%

5: Office Of The Chief Financial Officer 24 440 076 000 23 958 807 231 481 268 769 98% 21 11 10 52%

6: Office Of The Chief Operations Officer 106 399 954 93 758 589 12 641 365 88% 21 13 8 62%

Total 25 137 805 000 24 463 271 696 674 533 304 97% 128 73 55 57%

NATIONAL DEPARTMENT OF HUMAN SETTLEMENTS 2012/13

QUARTER AND ANNUAL PERFORMANCE AVERAGE

COMMUNICATION AND OUTREACH

10

For the 2012/2013 period, the following Departmental stakeholder outreach programmes were facilitated and implemented-:

•The Masimong 4 CRU project was launched on 20th June 2012. •Govan Mbeki Human Settlements Awards•Budget vote 2012•WUF Consultative Workshop •Youth build 2012 on 14 May 2012 •Estate Agency Affairs (EAAB Summit) 31 July 2012•Mantheding Project Launch 24 July 2012•Construction Sector Breakfast 02 Aug 2012•Presidential Visit To Sweetwaters And Bekkersdal – 10 Aug2012•Tlokwe Cru Launch + Municipal Accreditation 10 Aug 2012•Women’s Build House Handover Closing Ceremony 30 Aug 2012•Fleurhof Intergrated Human Settlement Development 20 Sept 2012

COMMUNICATION AND OUTREACH CONT

11

• Bothasig Gardens Social Housing project • Cornubia Integrated Housing development Project Launch • World Toilet Summit • Lephalale SOD Turning Ceremony;• World Urban Forum Report back session • Benguela Delegation Visit To Cornubia – 13 February 2013• Kenyan delegation visit - 1 March 2013• EAAB Board member announcement 7 March 2013 • Launch of the Chair for Education in Human Settlements 19 March

2013 • Preparation for Danida Energy Efficiency Pilot Project • Preparatory meeting for the International Conference on Architecture

for 2014.

STRATEGY & PLANNING

• Department rendered support to Provinces and Metros in respect of Programmatic Planning as it pertains to:

– Review of planning frameworks– Delivery and assessment of Business Plans and

BEPPs– Oversight in terms of outcome performances of

Human Settlement Grants

ENHANCED PEOPLE’S HOUSING PROCESS

The Programme was implemented by five (5) Provinces listed below and 6 801 units were delivered in total

•Mpumalanga 2 750•Kwa Zulu Natal 1 628•Western Cape 1 300•Gauteng 673•North West 450

ENHANCED PEOPLE HOUSING PROCESS• All the nine (9) Provinces were consulted and engaged on the

prioritization of PHP

• Capacity workshops on the enhanced PHP Policy Framework delivered in the five (5) Provinces implementing PHP

• Draft Implementation Guidelines for the enhanced PHP Policy Framework presented to MINTOP

• SANCO Development Institute engaged on possibility of piloting a PHP project utilizing Cooperatives

• Capacity Development Workshop regarding Cooperatives held on 27-28 June 2012 in partnership with Capacity Development unit

INTERNATIONAL RELATIONS PROGRAMME

The following Co-operation agreements were implemented:

• Agreement with Cuba on the South Africa – Cuba Technical Support Programme

• Co-operation Arrangement with the Netherlands in the Field of Social/Rental Housing

• Memorandum of Understanding with Denmark on a pilot project for energy-efficient low-income housing

• IBSA (India, Brazil, South Africa) Working Group on Human Settlements• China assisted housing project in Thabachweu, Mpumalanga• Cities Alliance, in support of their emerging Africa Strategy• Discussions on possible or continuing co-operation with: Angola,

Burundi, DRC, Uganda, Zimbabwe


Attended the following:

• 6th Session of the World Urban Forum in Naples, Italy• BRICS Summit dialogue on sustainable urbanisation, Delhi,

India• BRICS Urbanisation Forum in Delhi, India• International Conference on “Making Slums History: A

Challenge for 2020”, Rabat, Morocco• 4th African Ministerial Conference on Housing and Urban

Development , Nairobi, Kenya


The Department received the following delegations:

• Technical visit by the Botswana Ministry of Lands and Housing

• Visit by the Deputy Minister of Regional and Local Government, Housing and Rural Development of Namibia

Conducted the following visits:

• Visit to Rwanda by Deputy Minister of Human Settlements• Visit to the Brookings Institute, USA

STAKEHOLDER AND IGR PROGRAMME

• The Govan Mbeki Human Settlements Awards Framework Document was reviewed in July 2012 and subsequently approved and endorsed by the Technical Minmec

• The 2012 Govan Mbeki Human Settlements Awards were successfully implemented on the 31 May 2012.

• The Province of the year was awarded to North West.

• The Metropolitan Municipality of the year was awarded to Ethekweni.


The following Stakeholders were engaged-:

• Cooperative Government and Traditional Affairs (Cogta); • National Treasury (Cities Support Programme); • Department of Mineral Resources; • Department of Science and Technology; • NURCHA, and • National Housing Finance Cooperation• Private Sector Stakeholders engaged for sponsorship

and preparation of alternative technology.

STAKEHOLDER AND IGR PROGRAMME• In the year under review, significant strides were made in the coordination of the

government’s Programme of Action between key sector partners. The Department has worked closely with the Departments of;

– Rural Development and Land Reform (RD&LR) which is responsible for Outcome 9 – viz. Cabinet’s 23 Prioritised Rural District Municipalities; and

– Cooperative Governance and Traditional Affairs (COGTA) which is responsible for Outcome 7 – viz access to basic services and their Local Government Turnaround Strategy (LGTAS) programme in 108 poorly performing municipalities.

A significant feature of the intergovernmental relationship with both COGTA and RD&LR has been the establishment of quarterly reporting regime where the NDHS provides key housing and sanitation progress information in support of their respective Delivery Agreement targets.

• Directorate has developed the concept document and roll out plan towards the establishment of the National Human Settlements and Urban Forum (NHSUF). This process will allow all stakeholders to meaningfully participate in the ongoing debates and jointly develop policies and approaches pertaining to South Africa’s human settlements development and urban development policies and programmes


• Development of a project plan and concept note for the green paper process as approved by DG, EMT, MinTOP, Tech MinMEC, MinMEC and Portfolio Committee on Human Settlements;

• Consultative session with the Portfolio Committee, Provincial Heads of Department, Metropolitan Municipalities on the Human Settlements Policies;

• Consultative session on Pipeline Planning with human settlements practitioners to open a platform for robust engagement and dialogue on project pipeline planning;

• Process towards the development of a National Disaster Management Plan for the sector.

OUTCOME 8 – CREATE SUSTAINABLE HUMAN

SETTLEMENTS AND IMPROVED QUALITY OF HOUSEHOLD LIFE

22

UPGRADING OF INFORMAL SETTLEMENTS

• Actual number of households provided with upgraded services as on 31 March 2013: 177 598 households

• Represents 44,4% of 2014 target

• Including USDG: Increased to 230 111 households

• Represents 57,5%% of 2014 target

• Over same period Provinces delivered 182 065 formal housing units to households in informal settlements

23

OUTPUT 1: UPGRADING OF INFORMAL SETTLEMENTS

PROVINCE 2014TARGET

TOTAL DELIVERY (31 March 2013)

% OF TARGET2014

EC 59 440 22 600 38.1

FS 26 400 18 196 68.9

GT 96 760 44 362 45.8

KZN 78 200 20 266 26.6

LP 31 200 20 624 66.1

MP 26 480 12 340 46.6

NC 9 320 5 515 59.2

NW 28 840 13 829 48.0

WC 45 360 19 866 43.8

TOTAL 400 000 177 598 44.4

24

OUTPUT 1: UPGRADING OF INFORMAL SETTLEMENTS: USDG

PROVINCE HOUSING UNITS

SERVICES PROVIDED

(SITES/WATER/ SANITATION)

RENTAL

EC 6 056 21 631 344 (HSDG)130

FS 0 0 1 237

GT 0 16 190 179

KZN 4 234 9 250 442

WC 5 801Opportunities

5 442 0

TOTAL 16 091 52 513 2 332

25

OUTCOME 8 : UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)

PROVINCE 2014TARGET

TOTAL DELIVERY (31 March 2013)

INCLUDING USDG

% OF TARGET2014

EC 59 440 44 231 74.5

FS 26 400 18 196 68.9

GT 96 760 60 552 62.6

KZN 78 200 29 516 38.7

LP 31 200 20 624 66.1

MP 26 480 12 340 46.6

NC 9 320 5 515 59.2

NW 28 840 13 829 48.0

WC 45 360 25 308 55.8

TOTAL 400 000 230 111 56.7

26

NATIONAL UPGRADING SUPPORT PROGRAMME

• Technical assistance to Provinces and Municipalities: Upgrading of informal settlements:

– EC: Buffalo City: To be advertised in Tender Bulletin, NMM: Negotiations in advanced stage;

– FS: Categorisation and mapping under way in six NUSP Municipalities;

– GT: Tender evaluation completed for Ekurhuleni, COJ, Mogale City and City of Tshwane; Emfuleni to be re-advertised;

– KZN: Assistance concluded with Ladysmith, Newcastle and Mzundusi, Proposal agreed with Umhlathuze,

27

NATIONAL UPGRADING SUPPORT PROGRAMME

• NUSP (continued..):

– KZN : Response on proposal awaited from Ethekweni – LP: Developing of specific upgrading plans underway;– MP: still waiting for response from PHSD – NUSP

interacting with Municipalities directly;– NC: Draft SLA’s submitted for approval;– NW: TOR for Rustenburg approved and proposals

submitted to Tlokwe and Madibeng;– WC: TOR for George advertised and draft SLA’s for

COCT and Drakenstein submitted for approval

28

INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION

29

PROVINCE TOTAL DELIVERY

% OF 2014TARGET

TOTAL DELIVERY(including USDG)

% OF 2014TARGET

(including USDG)

EC 2 521 21.2 2 995 25.2

FS 2 056 38.9 3 293 62.4

GT 10 368 53.9 10 547 54.8

KZN 7 708 50.6 8 150 53.5

LP 136 2.2 136 2.2

MP 739 14.0 675 14.0

NC 290 15.6 5 15.6

NW 2 868 49.7 2 868 49.7

WC 6 523 71.9 6 790 71.9

Total 33 209 41.6 35 641 44.6

ACCREDITATION AND ASSIGNMENT OF MUNICIPALITIES

Performance to date:

• Level 1: 8 Municipalities and 1 District Municipality;

• Level 2: 7 Metros, 3 District Municipalities and 8 Local Municipalities

• Assessed and accredited Municipalities to date: 27 Municipalities

• Provincial Departments of CoGTA and Human Settlements will provide coordinated capacity, expertise and technical support to municipalities that are recommended for accreditation;

• Broad collaboration framework with National Treasury through Cities Support Programme has been agreed upon

30

ACCREDITATION AND ASSIGNMENT OF MUNICIPALITIES

• Each Province has been assigned with Professional Teams to assist in the facilitation, coordination and conflict resolution issues pertaining to accreditation and assignment processes.

31

OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN SETTLEMENTS

DEVELOPMENT• Actual delivery:

– 69 163 ha of state land identified for assessment and

47 604 ha thereof assessed for suitability for release;– 7 477,5 ha has been released (FS, GP,KZN,LP+NW)

• Land released well located for extension of existing settlements or within established town;

• Land released earmarked for land tenure upgrading, integrated development or GAP market

– PHSD’s (private land acquired): 10 218,9 ha

32

OUTPUT 4: IMPROVED PROPERTY MARKET• Mortgage Default Insurance Scheme:

– MDI has been submitted to the National Treasury for consideration

• Finance Linked Individual Subsidy:

– Revised FLISP Policy implemented on 1 April 2012;– 12 projects across the country are at different stages of implementation. – The process of accreditation of projects is on-going.– Implementation of FLISP is extended to the open market to fast track programme

delivery in provinces;– On 31 March 2013 the budget commitments for FLISP applications amounted to

R42 million

• Long term fixed interest rate instrument

– Planned for launching in 2014

• 3

33

PERFORMANCE : DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED

34

INSTITUTION TOTAL DELIVERY % OF 2014 TARGET

NHFC (Mortgage Loans) 1 7 91 92.8

NHFC (Incremental Loans)

12 968 31.9

NHFC (Wholesale funding)

21 964 55.8

NHFC (Leverage) 5 917 46.1

RHLF 125 141 68.8

NURCHA 8 110 70.8

IMPROVED PROPERTY MARKET• Stringent qualification criteria applied by banks is not

promoting growth in the affordable housing;

• The NDHS to engage with the Banks and encourage them to be transparent with the reasons for declining home loans;

• A process of engagement with public, private, social,

community and labour stakeholders are still to be arranged

• Department in conjunction with DPSA is developing a policy and programme for the provision of access to finance by public servants

35

CONSOLIDATION OF DFIS

• Consolidation of DFIs makes provision for three phases:

– Phase 1: Assessment of human settlements environment – completed;

– Phase 2: Develop a business case - include policy and legislative amendments, operational and legal due diligence – appointment of service providers to undertake legal and operational due diligence as well as drafting of Bill being finalised and expected to commence with work in the first quarter of 2013/14;

– Phase 3: Design establishment processes for new institution – will commence as soon as Phase 2 has been successfully concluded

36

ACTIONS TAKEN TO ADDRESS CHALLENGES

• A full informal settlement upgrading implementation support programme will be negotiated between the National Department, Provincial Departments and the 49 municipalities;

• A process has been initiated to review completed work to identify further areas of assistance

• Proposals for the revision of the CRU Policy, the Social and Rental Policy as well as the Institutional Subsidy as a package is currently being developed and will be submitted to EMT for further actions/instructions - Policy for backyard rental will form part of the aforementioned proposals;

37

ACTIONS TAKEN TO ADDRESS CHALLENGES

• Office of Disclosure developed enhanced Annual Return Reporting Format tool for disclosing of information. In addition, engagement with Banks to amend legislation to cover disclosure of unsecured loans is also underway;

• Negotiations with Banks with a view to the introduction of a Human Settlements Financial Charter envisaged to commence soon – will encourage greater finance provision from private sector for low and middle income households

38

JOB CREATIONThe delivery of 43,825 serviced stands and 115,131 completed houses created an estimated 59,923 job opportunities during the 2012/13 financial year.

39

National TOTAL EMPLOYMENT CREATED

Direct Indirect Induced Total

Serviced Stand

5 821

585

2 713

9

120

Top Structure

26 039

4 340

20 425

50

804

Total

31 860

4 926

23 138

59

923

SELECTED PERFORMANCE INDICATORS AS PER 2012/2013 STRATEGIC PLAN:

PROGRESS STATUS BY PPMU BRANCH • About 31 299 affordable, social and rental accommodation units were provided by

December 2012 exceeding planned 25 693 units.

• The total of 141 973 households were upgraded in well-located informal settlements with access to secure tenure and basic services by December 2012. This also exceeds 140 000 which was planned for 2012/13.

• Technical assistance under the NUSP to prepare municipal upgrading strategies and settlement level plans have been provided to 26 municipalities while assistance for a further 17 municipalities have been negotiated. The target for the financial year was to provide technical assistance to 9 municipalities.

• As of December 2012, 7 477.5 ha of land have been released. This also exceeded the planned target of 2 084 which was same as 2011/12 total.

• The totals for houses completed and number of sites serviced per year are awaiting confirmation which should be received during the fourth quarter provincial reviews, to be held in May 2013.

40

DEPARTMENTAL ADJUSTED BUDGET FOR 2012/13 FINANCIAL YEAR

Rand thousand

2012/13

Voted Rollovers

Virements and shifts

due to savings

Declared saving

VirementsRevised

Allocation

Administration 243,106 13,500 (20,500) 236,106

Housing Policy, Research and Monitoring 46,719 - 46,719

Housing Planning and Delivery Support 236,460 - (12,300) 224,160

Housing Development Finance 24,578,951 - (138,875) 24,440,076

Strategic Relations and Governance 157,944 - 32,800 190,744

Total 25,263,180 13,500 (138,875) - 25,137,805

ADJUSTMENT ESTIMATE SUMMARY

• Rollovers approved

– R11 million for the leasing of office accommodation; and– R2.5 million for furniture and equipment.

• Declared savings.

– R138.878 million has been identified by National Treasury as a saving on the Rural Household Infrastructure grant.

43

ADJUSTMENTS

• A virement was approved to fund Servcon.

• Servcon required R36.8 million as part of its closure costs and funded in Programme 5.

• The following savings were used:

– Prog 1: R20.5 million (Savings in SIU) . – Prog 5: R16.3 million from within prog. 5 (Savings

within Management Information Services).

44

DEPARTMENTAL EXPENDITURE PER PROGRAMME: 31 MARCH 2013

45

Programmes Final Allocation Expenditure Variance%

Spent

1. Administration 236 106 000 174 317 784 61 788 216 74%

2. Housing Policy, Research and Monitoring

46 719 000 32 356 920 14 362 080 69%

3. Housing Planning and Delivery Support

224 460 000 143 667 991 80 792 009 64%

4. Housing Development Finance

24 440 076 000 23 958 807 231 481 268 769 98%

5. Strategic Relations and Governance

190 444 000 154 119 264 36 324 736 81%

Total 25 137 805 000 24 463 269 190 674 535 810 97%

OPERATIONAL EXPENDITURE:31 MARCH 2013

46

Programmes Final Allocation Expenditure Variance % Spent

1. Administration 236 106 000 174 317 784 61 788 216 74%

2. Housing Policy, Research and Monitoring

46 719 000 32 356

920 14 362 080 69%

3. Housing Planning and Delivery Support

210 639 749 129 847 740 80 792 009 62%

4. Housing Development Finance 68 478 000 53 195

475 15 282 525 78%

5. Strategic Relations and Governance 189 164 000 154 119 264 35 044 736 81%

Total 751 106 749 543 837 183 207 269 566 72%

Note: Expenditure excludes all Transfer payments.

REASONS FOR UNDERSPENDING

• Non-filling of vacancies as a result of the lack of office space.

• Special Investigation Unit (SIU) challenges were experienced with the SIU not providing the Department with invoices.

• The leasing of additional office accommodation were not utilised as issues were not resolved with the Department of Public Works.

• Within programme 3 a delay occurred in the implementation of the National Upgrading Support Programme.

47

REASONS FOR UNDER SPENDING CONT.

• The inability of SITA to provide resources at an adequate level to maintain the Housing Subsidy System (HSS) as stipulated in the SLA led to under spending within programme 5.

• On Rural Household Infrastructure Grant:

– The building of toilets for the 2012/13 financial year was delayed because the service providers had to finish work from the previous financial year.

– As part of the Department’s intervention, additional service providers were appointed during the last quarter of the financial year to assist in finalising the projects, but at year end work was still underway.

48

GRANTS AND TRANSFER PAYMENTS 31 MARCH 2013

49

Transfer Payments Total Allocation Expenditure Variance % Spent

Human Settlements Development Grant 15,725,959,000 15,395,032,000 330,927,000 98%

Urban Settlements Development Grant 7,392,206,000 7,392,206,000 - 100%

Social Housing Regulatory Authority: Operational 21,096,000 21,096,000 - 100%

Social Housing Regulatory Authority: Capital Restructuring Grant

647,401,000 647,401,000 - 100%

Rural Housing Loan Fund 31,975,000 31,975,000 - 100%

Housing Development Agency 92,336,000 92,336,000 - 100%

National Urban Reconstruction and Housing Agency 120,000,000 120,000,000 - 100%

Bursaries Scheme 13,820,251 13,820,251 0 100%

UNHABITAT 1,280,000 1,279,036 964 100%

Rural Households Infrastructure Development 340,625,000 208,269,891 132,355,109 61%

SAPI Conference 400 000 400 000 - 100%

Total 24 387 098 251 23 921 111 043 465 987 208 98%

HUMAN SETTLEMENTS DEVELOPMENT GRANT EXPENDITURE: 31 MARCH 2013

50

Provinces

DORA Allocation 2011/12

Roll OversFunds

Withheld/ Stopped

Total Available

Actual transferAmount

received by Province

Amount spent by Province % Spent

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Eastern Cape 2 292 859 - (284 813) 2 008 046 2 008 046 2 008 046 2 001 816 100%

Free State 961 619 2 716 -

961 619 961 619 961 619 964 335 100%

Gauteng 4 003 776 -

-

4 003 776 4 003 776 4 003 776 4 001 589 100%

KwaZulu-Natal 2 915 297 -

-

2 915 297 2 915 297 2 915 297 2 915 297 100%

Limpopo 1 471 617 -

(46 114) 1 425 503 1 425 503 1 425 503 1 315 532 92%

Mpumalanga 965 127 -

-

965 127 965 127 965 127 953 062 99%

Northern Cape 339 551 -

-

339 551 339 551 339 551 339 538 100%

North West 1 050 933 -

-

1 050 933 1 050 933 1 050 933 1 050 855 100%

Western Cape 1 725 180 -

-

1 725 180 1 725 180 1 725 180 1 725 180 100%

Total 15 725 959 2 716 (330 927 ) 15 395 032 15 395 032 15 395 032 15 276 204 99%

DELIVERY PERFORMANCE

51

Province

Annual Delivery TargetsDelivery Performance as at 31

March 2013 Variance

Delivery sites

Variance Delivery

Top Structure

Total Variance DeliverySites

(units)

Top Structure

(units)

Total Delivery Targets

Sites (units)

Top Structure

(units)

Total Delivery

Performance

Eastern Cape 17,366 17,999 35,365 10,372 12,998 23,370 (6,994) (5,001) (11,995)

Free State 27,264 8,300 35,564 5,070 5,209 10,279 (22,194) (3,091) (25,285)

Gauteng 14,536 26,348 40,884 7,861 21,310 29,171 (6,675) (5,038) (11,713)

KwaZulu-Natal 9,305 29,399 38,704 6,063 25,251 31,314 (3,242) (4,148) (7,390)

Limpopo 14,577 17,760 32,337 1,951 12,009 13,960 (12,626) (5,751) (18,377)

Mpumalanga 5,914 10,015 15,929 125 7,605 7,730 (5,789) (2,410) (8,199)

Northern Cape 2,785 2,646 5,431 3,723 2,839 6,562 938 193 1,131

North West 3,717 10,167 13,884 2,478 14,640 17,118 (1,239) 4,473 3,234

Western Cape 8,522 14,674 23,196 8,294 12,881 21,175 (228) (1,793) (2,021)

Total 103,986 137,308 241,294 45,937 114,742 160,679 (58,049) (22,566) (80,615)

PERFORMANCE OF THE USDG AS AT31 MARCH 2013

52

Municipalities

Year to date (1 April 2012 - 31 March 2013)

Allocated Funds National Rollovers Total

AvailableTransferred

FundsSpent by

Municipality

Variance Spent vs. Transfer-

red

Variance Spent vs.

Total Available

Transfer-red as % of voted

funds

Spent as % of Total

Available

Unspent as % of Total

Available R'000 R'000 R'000 R'000 R'000 R'000 R'000

Buffalo City 499 474 267 314 766 788 499 474 155 021 344 453 611 767 100% 20% 80%

Nelson Mandela 592 870 592 870 592 870 314 414 278 456 278 456 100% 53% 47%

Mangaung 485 967 128 578 614 545 485 967 300 192 185 775 314 353 100% 49% 51%

Ekurhuleni 1 212 537 1 212 537 1 212 537 607 300 605 237 605 237 100% 50% 50%

City of JHB 1 290 748 76 439 1 367 187 1 290 748 483 366 807 382 883 821 100% 35% 65%

City of Tshwane 1 051 070 10 118 1 061 188 1 051 070 610 211 440 859 450 977 100% 58% 42%

eThekwini 1 287 560 28 369 1 315 929 1 287 560 386 507 901 053 929 422 100% 29% 71%

City of Cape Town 971 980 70 869 1 042 849 971 980 483 346 488 634 559 503 100% 46% 54%

Total 7 392 206 581 687 7 973 893 7 392 206 3 340 357 4 051 849 4 633 536 100% 42% 58%

PERFORMANCE OF THE USDG AS AT30 JUNE 2013

53

Municipalities

Year to date (1 July 2012 - 30 June 2013)Allocated

Funds NationalRollovers

Total Available

Transferred Funds

Spent by Municipality

Unspent allocation

Spent as % of Total AvailableR'000 R'000 R'000 R'000 R'000 R`000

Buffalo City 499 474 267 314 766 788

499 474 558 609

208 179

73%

Nelson Mandela 592 870 592 870

592 870 592 870

-

100%

Mangaung 485 967 128 578 614 545

485 967 491 560

122 985 80%

Ekurhuleni 1 212 537 1 212 537

1 212 537 1 141 847

70 690

94%

City of JHB 1 290 748 76 439

1 367 187

1 290 748 1 322 632

44 555

97%

City of Tshwane 1 051 070 10 118

1 061 188

1 051 070 1 061 188

-

100%

eThekwini 1 287 560 28 369

1 315 929

1 287 560 1 315 929

-

100%

City of Cape Town 971 980 70 869

1 042 849

971 980 976 571

66 278

94%

Total 7 392 206 581 687

7 973 893

7 392 206 7 461 206

512 687

94%

NON-FINANCIAL PERFORMANCE - BCM

• 9.32kms of roads have been tarred;• 6.6kms of roads have been upgraded from gravel to surfaced;• 68km of roads have been built;• 347.53km of roads have been resurfaced;• 501 stands have been serviced; • 17 new water service points (taps) installed for informal settlements

dwellers;• 591 new households (RDP) have been provided with water connections;• 160 new sanitation service points installed for informal settlements

dwellers;• 306 new households (RDP) have been provided with electricity

connections;• 254 street lights have been installed in new settlements.

54

NON-FINANCIAL PERFORMANCE - NMBM• 3 080 new subsidised houses were provided with water and sewer

connections.

• 132 870 households with solid waste removal.

• 2 870 new erven connected to electricity.

• 351 area lights.

• 41 high mast.

• 4km of roads surfaced.

• 12km roads tarred.

• 3 512 households with permanent water and sanitation services.

55

NON-FINANCIAL PERFORMANCE - MANGAUNG

• 158 771 household provided with bulk water and sanitation.

• 292 households eradicated from VIP toilets.

• 20km of roads surfaced.

• 2.8km roads graveled.

• 170 130 households connected to electricity.

• 2 Landfills sites.

• 3 new townships established.

56

NON-FINANCIAL PERFORMANCE - EKURHULENI

• 6 748 housing units in informal settlements have been upgraded.

• 3 360 housing sites serviced.

• 61 hectares of land parcels acquired.

• 612 households connected with electricity.

• 49 high mast lighting provided.

• 7 850 street lights replaced.

57

NON-FINANCIAL PERFORMANCE – CITY OF JOHANNESBURG

• 4 055 units in informal settlements upgraded.

• 3 110 households provided with water services.

• 3 043 households provided with sanitation services.

• 570 VIPs provided.

• 1 532 households connected with electricity.

• 3 205 street lights provided.

• 2km roads surfaced.

• 8km road gravelled.

• 1 clinic built.

58

NON-FINANCIAL PERFORMANCE – CITY OF TSHWANE

• 3 cemeteries upgraded.

• 2 sport fields build.

• 2 010 street lights provided.

• 22 high mast connected.

• 4 398 households provided with water services.

• 5 094 households provided with sanitation services.

• 45.11km roads surfaced.

• 7.7km roads gravelled.

• 2.3 km roads tarred.

59

NON-FINANCIAL PERFORMANCE – ETHEKWINI

• 2 762 units provided with fully subsidised houses.

• 4 019 households provided with bulk sanitation.• 2 ablution facilities provided in informal

settlements. • 2 129 households provided with water

connections.• 4 019 households provided with electricity

connections.

60

NON-FINANCIAL PERFORMANCE – CITY OF CAPE TOWN

• 6 394 sites serviced.• 204 households provided with solid waste

removal.• 446 households connected with electricity. • 626 taps provided.• 8 035 VIP toilets provided.

61

RESPONSE TO AUDITED OUTCOMES 2012-13

AUDITOR’S OPINION

• The department achieved a non qualified audit opinion with an emphasis of matter on the following:

EMPHASIS OF MATTERS IN THE AUDIT REPORT

• The department disclosed an amount of R22 413 000 for invoices received from the Department of Public Works (DPW) for office accommodation. The department does not occupy the building and ultimate outcome of the matter cannot be determined and no provision for any liability that may result has been made in the financial statements

EMPHASIS OF MATTERS IN THE AUDIT REPORT CONT.

• Under-spending on the Rural Household Infrastructure Development Programme amounts to R135 059 000 on a total adjusted budget of R340 625 000

• Payments were made in advance of receipt of goods or services in contravention of Treasury Regulation 15.10.1.2.


• A business plan for utilisation of the Human Settlements Development Grant allocation made to all nine provinces was not approved prior to the start of the financial year, as required by section 10.(1) (a) of the DoRA

• Proper control systems for safeguarding and maintenance of assets were not implemented as required by section 38(1)(d) of the PFMA and Treasury Regulation 10,(1)(1)(a)


• Persons in charge at pay points did not always certify that the employees receiving payment were entitled thereto as required by Treasury Regulation 8.3.4.

• Funded vacant posts were not filled within 12 months as required by the Public Service Regulation 1/VII/C.1A.2.

MANAGEMENT’S REPONSE REGARDING AUDIT OUTCOME

• An action plan was developed in order to address findings raised by the Office of the Auditor General.

• Action plan document reflect planned actions, time frames and responsible senior managers.

• All planned actions from the responsible managers have been scrutinsed to ensure that they address the audit finding raised.

MANAGEMENT’S REPONSE REGARDING AUDIT OUTCOME CONT.

• Action plan document will be closely monitored on a monthly basis whereby responsible managers will be required to update progress on the planned actions.

• The Internal Audit Unit will verify progress reported by managers monthly, by means of gathering supporting evidence.

THANK YOU

“We have come a long way – Celebrating 20 Years of Freedom!”

structure of the presentation

Documents