Presentation to the Standing Committee on
Appropriation
10 November 2015
I Public Works I Parliament I Cape Town
1
Contents
1. Budget Adjustments
Slide 3
2. 2015 Budget Adjustment Implications
Slide 7
3. Financial Performance
Slide 10
4. Non-financial Performance
Slide 13
2
Purpose of the Presentation
Budget Adjustment
3
Adjusted Budget Allocation
2015/16
Voted
(Main
appropriation)
R thousand
Programmes
Administration
Virements
and shifts
due to
savings
R`000
R`000
Declared
unspent
funds
Adjusted
appropriation
R`000
R`000
475,996
1,350
-
477,346
47,223
(1,500)
-
45,723
Expanded Public Works Programme
1,992,234
-
(38,865)
1,953,369
Property and Construction Industry Policy and Research
3,802,962
-
(60,000)
3,742,962
92,672
150
-
92,822
-
-
-
-
6,411,087
-
(98,865)
6,312,222
Intergovernmental Coordination
Prestige Policy
Total for Programmes
4
Adjusted Budget Allocation
Voted
(Main
appropriation)
R thousand
Economic classification
Current payments
Compensation of employees
Goods and services
R`000
882,781
474,995
407,786
Transfers and subsidies
Provinces and municipalities
Departmental agencies and accounts
Foreign governments and international organisations
Public corporations and private enterprises
Non-profit institutions
Households
Payments for capital assets
Machinery and equipment
5,500,246
1,178,866
3,703,137
23,273
50,000
534,816
10,154
28,060
28,060
Total
6,411,087
2015/16
Virements Declared
and shifts unspent
due to
funds
savings
R`000
R`000
1,300
1,300
(1,300)
(1,300)
-
-
Adjusted
appropriation
R`000
884,081
474,995
409,086
(98,865)
(38,865)
(60,000)
-
5,400,081
1,140,001
3,641,837
23,273
50,000
534,816
10,154
28,060
28,060
(98,865)
6,312,222
5
Reduced allocations
Reduced Transfers
R thousand
Provinces and municipalities
Expanded public works programme integrated grant for provinces
Social sector expanded public works programme incentive grant for provinces
Departmental agencies and accounts
Property Management Trading Entity
Total
Voted
(Main
appropriation)
Declared
unspent funds
Adjusted
appropriation
R`000
R`000
R`000
591,175
(38,865)
552,310
350,612
(24,405)
326,207
240,563
(14,460)
226,103
3,584,652
(60,000)
3,524,652
3,584,652
(60,000)
3,524,652
4,175,827
(98,865)
4,076,962
6
Purpose of the Presentation
2015 Budget Adjustment Implications
7
2015 Budget Adjustment Implications: EPWP Incentive Grant
 A total of 1 127 186 work opportunities were planned for 2015/16, with the total
budget allocation of R1.7 billion.
 During the adjustment estimates R38 million was reduced from both EPWP Integrated
Grant (R24 million) and Social Sector Incentive Grant (R14 million) resulting in the
revised target of 1 126 779 for work opportunities.
 Reduced budget allocation for the grants will result in:
 Creation of less employment opportunities for the current financial year
 Less opportunities for skills development
 Service delivery being impacted negatively as less people being employed
8
2015 Budget Adjustment Implications




The Department is in the process of acquiring the property known as Parliament Towers
in Cape Town.
This property houses the DG’s of the respective departments and is in close proximity to
Parliament.
An investment analysis has shown that it would be in the best interest of Government to
acquire the property instead of continuing the lease of the building from a private sector
company.
Due to the budget adjustment, the department will not be able to afford the full offer
price in the current financial year and the acquisition will have to be postponed to the
next financial year.
9
Purpose of the Presentation
Financial Performance
10
Financial Performance
30-Sep-15
R thousand
Programmes
Administration
Adjusted
appropriation
Expenditure
R`000
R`000
Projections for the
Actual
remaining period Expenditure %
R`000
477,346
216,743
260,603
45%
45,723
15,024
30,699
33%
Expanded Public Works Programme
1,953,369
1,029,925
923,444
53%
Property and Construction Industry Policy and Research
3,742,962
1,194,894
2,548,068
32%
92,822
42,123
50,699
45%
6,312,222
2,498,709
3,813,513
40%
Intergovernmental Coordination
Prestige Policy
Total for Programmes
11
Financial Performance
R thousand
Economic classification
Current payments
Compensation of employees
Goods and services
Interest and rent on land
Adjusted
appropriation
R`000
30-Sep-15
Expenditure
Projections for the
Actual
remaining period Expenditure %
R`000
884,081
474,995
409,086
404,939
219,859
184,963
117
479,259
255,136
224,123
-
46%
46%
45%
0%
Transfers and subsidies
Provinces and municipalities
Departmental agencies and accounts
Foreign governments and international organisations
Public corporations and private enterprises
Non-profit institutions
Households
Payments for capital assets
Machinery, equipment and intangible assets
5,400,081
1,140,001
3,641,837
23,273
50,000
534,816
10,154
28,060
28,060
2,083,241
630,674
1,076,200
23,363
50,000
293,154
9,850
10,529
10,529
3,316,840
509,327
2,565,637
(90)
241,662
304
17,531
39%
55%
30%
100%
100%
55%
97%
38%
38%
Total
6,312,222
2,498,709
3,796,099
40%
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Purpose of the Presentation
Non-financial Performance
13
Selected Performance Indicators as per the ENE
Performance Indicator
Annual Target
Cumulative Performance Comments (on the basis
(Q1&2)
of Q2)
Number of work opportunities
reported
1 127 186 work opportunities 318 108 work opportunities Target partially Achieved Delays in the reporting
created through EPWP Phase reported through EPWP
system
3.
Phase 3..
Number of work opportunities
700 000 Work opportunities 269 844 work opportunities Target partially Achieved –
Delays in the reporting
created in rural municipalities
created in rural
created in rural
system
aligned to the EPWP business plan. municipalities.
municipalities.
Percentage of EPWP participation 55% Women
among designated groups (women,55% Youth
youth and persons with
2% PWD
disabilities) aligned to the EPWP
Phase III Business Plan.
70.5% Women
45.4% Youth
1.7% PWD
The target on Youth will
improve once the projects
that target Youth have been
awarded.
14
Non-financial Performance
Performance Indicator
Annual Target
Cumulative Performance Comments (on the basis
(Q1&2)
of Q2)
Number of IGR forums convened
for oversight of the Public Works
Sector
12 intergovernmental
forums convened
7 intergovernmental forums Target Achieved
convened
Promulgation of a public works act -
Draft 1 of Public Works White Revised procurement strategy
(moving from nominated
Paper consulted with key
service provider to open
stakeholders
tender) was initiated.
Development of Prestige norms and Norms and standards First Draft norms and
standards
for category III
standards for category iii
approved by Parliament clients developed
In the process of completing
the remainder of standards
and norms and getting them
approved
15
Non-financial Performance
Some PMTE Performance Highlights
Performance Indicator
Annual Target
Cumulative
Performance (Q1&2)
Comments (on the basis of Q2)
Number of projects completed
62
within agreed construction period
48
Number of projects completed
within approved budget
47
Target overachieved Continuation of
the turnaround strategy to improve
performance.
1).
Encourage
termination of non performing
contractors & consultants. 2).
Called intervention meetings with
contractors. 3). Issued mora letters.
4). Increased project monitoring
77
Percentage of identified Real Estate 100% of identified 99.12% of identified Real
Assets verified
Real Estate Assets Estate Assets verified
verified
Percentage efficiency (turnaround 65%
time) for unscheduled maintenance
on freehold property within 5 days
Target Achieved: Cumulative target
therefore most of the Real Estate
Assets were verified by 31 March
2015
32% calls managed (logged Currently developing the manual for
and completed)
uniformity and alignment of
business processes to the system
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Thank You
Department of Public Works (National )
Head Office: Public Works
CGO Building
Cnr Bosman and Madiba
Pretoria Central
Private Bag
X65
Pretoria
0001
Website: http://www.publicworks.gov.za
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