National Department of Public
Works
Presentation to the Select
Committee on Public Services
5 June 2012
Immovable Asset Register (IAR)
Programme Progress Report (Draft)
CONTENTS
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Background
IAR Program on a page
Program governance structure
Status quo assessment
Key achievements to date
Field Work
Concurrent mandate
Critical success factors
Closing
BACKGROUND
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Service provider appointed & commenced work in October/
November 2011
Status quo and gap analysis completed by Dec 2012
PMO established with effect from Jan 2012 to oversee
programme to rebuild a baseline compliant immovable asset
register (IAR)
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Clear work-packages developed to achieve re-build
Core team of 6 joint client/ consultant team in place for past 5
months
Extensive use being made of other DPW resources,
management trainees, previously unemployed graduates
Programme reports directly to COO and DG
Regular feedback provided at Minister / Exco levels
IAR PROGRAMME ON A PAGE
AG will still
qualify
Key projects & activities required
Nov 11
Status
quo & gap
AG may still
qualify
Mar 12
Identified &
secured DPW
resources
PMO
Set-up
Decided to adopt FV
approach going forward
July 12
Roadmap & budget
prepared to March
2014
IAR requirements
incorporated into iEWorks
data repository
Designed requirements for
baseline compliant IAR
Reconciled PMIS to
Deeds & Other IARs
May 12
Data cleansing &
comparison of
PMIS to Aktex
Developed
custodian
framework
Analysis of current vesting
process & suggested options
given March 2014 deadline
Developed
custodian
framework
Extensive liaison
with AG and OAG
Dec 12
May 13
Focussed field work in conjunction with
Regions
Develop & apply Fair Value process by
2012/13
Clean report with
“emphasis”
IAR for
AFS
2013
Ongoing data cleansing & masterfile creation for each
property
Design revised integrated operating
model for asset register management
function (ARM)
Complete confirmation of
properties transferred to
provinces (List B)
May 14
Implement
Migrate
Handover
New
operating
model
Operate interim
structure
Revise vesting process/ bulk vesting with RDLR
Proposed timeline/ sequence
Key milestone:
Desktop cleanse process can be
incorporated into IAR for 31 May
2012
Key:
Completed
Work in progress
Key milestone:
95% IAR with required refinements that ties
back to AFS
Not started
Final
product
PROGRAMME GOVERNANCE STRUCTURE
Turnaround
Structures/
Initiatives
Monthly Mintop
Standard dashboard
DPW DG
DPW COO
Monthly Steering Committee
DG, COO, EY, CD ARM, DDG AIM
EY Project Director
Weekly
Programme
Opco
Co-opts other DPW
disciplines (IT,
finance etc) as
deemed necessary
DPW ARM CD
Responsible for
implementation
EY PMO & Project Lead
EY team
DPW ARM team
DPW resources & contractors
Regions/ Property Managers
Monthly Steering Committee: Chaired by DG/ COO, approves & tracks IAR programme, monitors & approves programme
changes, approves design documents submitted by Opco, instructs DPW directorates & regions, external communication
through DG with other Departments & Provinces, approves EY invoices and other project spend required.
Weekly Programme Opco: Operational meeting based on standard weekly flash report from project managers, project leads
report on progress of individual projects, acts a design authority, liaises with regions, other disciplines and directorates on a
day-to-day basis. Responsible for managing and executing all IAR projects, managing resources, scheduling projects and
providing monthly pre-determined status reports to steering committee.
STATUS QUO ASSESSMENT
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Summary of information currently contained in IAR (PMIS* Sept 2010)
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Incomplete & inaccurate
Not updated regularly/ consistently
Inconsistent / duplicated data
Does not comply with applicable legislation and NT guidelines
Does not meet DPW user (reporting) requirements
Cannot be reconciled to financial records
o
o
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NB: Supporting documentation from WCS or BAS payments is not the issue
Issue is the lack of defined processes and system integration to give effect to recording
annually the appropriate entries in the IAR in respect of qualifying capital expenditure in
terms of a valid capitalisation policy
Operating model not clearly defined
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Roles & responsibilities not clear (ARM, Regions, Finance)
Don’t have right skills and capacity in right place
No end-to-end business processes
User requirements for iE-Works development are not complete
*PMIS in process of being replaced by iE-Works (complete IAR functionality pending
KEY ACHIEVEMENTS TO DATE
1.
2.
Performed reconciliation of PMIS to deeds records and other
custodian IARs to determine number of properties to be included in
IAR
Completed data cleansing by comparison of +- 85 000 records to
Aktex
• Utilised 21 contractors at DPW Head Office to perform this work
3.
Custodian framework drafted
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4.
For March/May 2012 reporting cycle we are in a position to present;
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5.
6.
7.
Contact with other custodians to ensure right assets are disclosed in the right
custodian’s asset register
List of assets as reconciled to Deeds and Aktex
Improvements file linked to land parcels to provide more holistic view
List of items for follow-up / clarification
Defined fields required for baseline IAR (incorporated in iE-Works)
Extensive engagement with OAG, who concurs that focus area is
completeness & accuracy of IAR (valuation not as critical)
Draft capitalisation policy prepared
KEY ACHIEVEMENTS TO DATE
Preliminary result of analysis of deeds download obtained 30 Sept 2011:
Analysis of deeds download
Total number of records in Deeds File
Total number of valid properties in deeds file
State Land - provinces and national
Parastatal
Municipality
Private
68,457,997
6,843,617
147,009
21,369
893,474
5,781,765
Analysis of state land
Total State Land as above
Provincial
Rural Development
Water Affairs
Forestry
Defence endowment (s/be a total of 82 properties - still linking remainder)
Remainder deemed to be National Public Works
NB: Above figures are subject to change as we progress with analysis/ clarification
147,009
84,468
20,093
282
215
52
41,899
KEY ACHIEVEMENTS TO DATE
1/2) What are we meant to disclose in NDPW IAR and AFS?
• previously been reporting +- 35 000 land parcels as NDPW’s
• Review to date reveals following results:
Land
Should Ringfenced
parcels Include
be
for further
Description
(PMIS)
in IAR excluded follow up
RSA or derivative thereof - hence include in NDPW
16,471 16,471
Aktex contains reference to "National" - hence include in NDPW
4,969
4,969
Unregistered - no title holder
4,366
4,366
Private Properties, Individuals, Companies, Munics, Parastatals & Agencies)
3,659
3,659
Provincial Properties ( Clearly Provincial Names)
1,209
1,209
Other State Departments
3,341
3,341
Permission To Occupy and Build (PTO's and PTOB's)
401
401
Other
292
8
284
Tribal Land
110
110
Foreign Properties
101
101
DUMS
976
976
Grand Total
35,895 21,448
8,420
6,027
NB: Above figures are subject to change as we progress with analysis/ clarification
Comment
Deemed DPW National
Deemed DPW National
Investigating
Not State Land
Not National DPW
Other Custodians
Verify property usage
Various for follow up
Verify property usage
DIRCO is disclosing
Duplications
KEY ACHIEVEMENTS TO DATE
2/2) What are we meant to disclose in NDPW IAR and AFS?
 +- 50 000 provincial properties were devolved to provinces (2008)
 Such properties were not correctly removed from PMIS & accounted for by NDPW
 NT sector specific guide requires that NDPW discloses in its IAR and AFS such
provincial properties not yet vested by relevant provinces
 Desktop analysis reveals the following;
Item
Qty
Comment
Total provincial land parcels in PMIS
50,364
Less: Already vested by Provinces
10,903
Aktex reveals provincial govt as title holder
Less: Private properties to be removed
9,273
Needs investigation and follow up
Less: Properties that could form part of NDPW’s IAR
1,360
Have references to “National” in Aktex hence should form
part of NDPW main IAR
Less: Other (no title holder, PTO’s, other state dept’s etc)
12,177
Further analysis required before these can be categorised
with certainty
To be disclosed by NDPW in IAR & AFS
16,651
Provincial properties but not yet vested by provinces, hence
reflected in NDPW IAR/ AFS.
NB: Above figures are subject to change as we progress with analysis/ clarification
FIELD WORK
 Previous attempts at field work have had mixed success &
results are not necessarily reflected in current data in PMIS
 Regions possess significant amounts of information not
necessarily (correctly or completely) reflected in current IAR
 Intention is to perform focussed fieldwork where information is
lacking and vital to the process (also for FV model)
 Fieldwork to be done in collaboration with Regions;
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May not be necessary to inspect each land parcel (use of desktop
technologies)
Use of industry standard tool (tablet) to collect, record, validate and
upload data on an ongoing basis
Use of DPW resources and graduates (Minister’s call database)
Plan to commence fieldwork in August 2012 and complete by April
2013
VESTING PROCESS
 Current process not sufficiently co-ordinated or focussed despite
resources that have been assigned in Regions
 Based on latest statistics (reliability issues) the current
throughput is too low to achieve deadline of March 2014
 Key challenges:
 Information required to complete forms not available due to current state of
IAR and challenges in confirming use at 27 April 1994
 (Skilled) capacity at National, Provinces and DRDLR
 Proposals
 IAR rebuild will provide majority of information required
 Joint collaboration with DRDLR, Provinces to bulk vest
 May require streamlining of current prescribed process
CONCURRENT MANDATE
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Need to (re-) define and agree on what role DPW has in
conjunction with DRDLR, Provinces and other custodians
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DPW in process of re-establishing its concurrent mandate –
evidenced by e.g.;
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Custodian framework developed and being approved by State law
advisor
Contact being made with all other custodians (“who is disclosing
what in terms of what”)
Design input into iE-Works as asset register system for all users
Deeds reconciliation for completeness of accounting & reporting by
relevant custodians
 Revised Operating Model will incorporate such functions and
required skills/ capacity to give effect to NDPW’s concurrent
mandate
CRITICAL SUCCESS FACTORS
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PMO to work closely with turnaround team to arrive at suitable operating
model for asset register management
Rapid implementation of proposed revised operating model to ensure
continued momentum and ongoing maintenance of IAR
Change management at all levels – National, Regions, Provinces,
RDLR
Integration of base data contained in IAR with other business
requirements going forward as organisation matures
Development of iE-Works to meet all IAR requirements or clarity on
alternative system going forward to enable integrated processes,
accurate reporting both internally and externally for portfolio/ property
management purposes
Co-operation with RDLR and Provinces to speed up vesting process
(e.g. Bulk vesting of provincial properties still in DPW IAR)
Incorporating wider business requirements whilst baseline IAR is being
established
CLOSING
 Substantial tangible progress has been made and
awareness created at National and Provincial
levels of what is required to build baseline
compliant IAR
 Tight but achievable deadline given that required
resources materialise as planned
 Programme has sponsorship at the highest level
THANK YOU