DEPARTMENT OF HUMAN SETTLEMENTS
ANNUAL PERFORMANCE REPORT FOR
THE FINANCIAL YEAR 2012/13
DIRECTOR-GENERAL: T ZULU
STRUCTURE OF THE PRESENTATION
1.
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
43%
57%
Achieved
Not Achieved
DEPARTMENTAL EXPENDITURE VS.
PERFORMANCE (TARGETS)
Programmes
1: Administration
Final Allocation
Expenditure
Variance
%
Spent
Planne
Achieved
d
Targets
Targets
Variance/
%
Targets Achieved
not
Targets
achieved
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%
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%
25 137 805 000
24 463 271 696
674 533 304
97%
128
73
55
57%
4: Programme
Management Unit
Total
8
NATIONAL DEPARTMENT OF HUMAN
SETTLEMENTS 2012/13
QUARTER AND ANNUAL PERFORMANCE AVERAGE
68
67
66
64
62
63
60
59
58
60
57
56
54
52
First Quarter
Second Quarter Third Quarter
Fourth Quarter
Annual
COMMUNICATION AND OUTREACH
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
10
COMMUNICATION AND OUTREACH CONT
•
•
•
•
•
•
•
•
•
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.
11
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
Kwa Zulu Natal
Western Cape
Gauteng
North West
2 750
1 628
1 300
673
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
INTERNATIONAL RELATIONS PROGRAMME
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
INTERNATIONAL RELATIONS PROGRAMME
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.
STAKEHOLDER AND IGR PROGRAMME
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
STAKEHOLDER AND IGR PROGRAMME
• 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
2014
TARGET
TOTAL DELIVERY
(31 March 2013)
% OF TARGET
2014
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
5 801
Opportunities
5 442
0
16 091
52 513
2 332
TOTAL
25
OUTCOME 8 : UPGRADING OF INFORMAL
SETTLEMENTS (INCLUDING USDG)
PROVINCE
2014
TARGET
TOTAL DELIVERY
(31 March 2013)
INCLUDING USDG
% OF TARGET
2014
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 WELLLOCATED RENTAL ACCOMMODATION
PROVINCE
TOTAL
DELIVERY
% OF 2014
TARGET
TOTAL DELIVERY
(including USDG)
% OF 2014
TARGET
(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
29
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
33
PERFORMANCE : DEVELOPMENT FINANCE
INSTITUTIONS: LOANS GRANTED
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
125 141
68.8
8 110
70.8
RHLF
NURCHA
34
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 CREATION
The delivery of 43,825 serviced stands and 115,131 completed
houses created an estimated 59,923 job opportunities during
the 2012/13 financial year.
National
Serviced Stand
Top Structure
Total
TOTAL EMPLOYMENT CREATED
Direct
Indirect
Induced
Total
5 821
585
2 713
9 120
26 039
4 340
20 425
50 804
31 860
4 926
23 138
59 923
39
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
2012/13
Rand thousand
Voted
Administration
Housing Policy, Research and Monitoring
Housing Planning and Delivery Support
Housing Development Finance
Strategic Relations and Governance
Total
Rollovers
243,106
13,500
46,719
-
236,460
-
24,578,951
-
157,944
-
25,263,180
13,500
Virements
and shifts
due to
savings
Declared
saving
Revised
Allocation
Virements
(20,500)
236,106
46,719
(12,300)
24,440,076
(138,875)
(138,875)
224,160
32,800
190,744
-
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
Programmes
Final Allocation
Expenditure
Variance
%
Spent
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%
190 444 000
154 119 264
36 324 736
81%
25 137 805 000
24 463 269 190
674 535 810
97%
1. Administration
5. Strategic Relations and
Governance
Total
45
OPERATIONAL EXPENDITURE:
31 MARCH 2013
Programmes
Final Allocation
Expenditure
Variance
% Spent
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%
1. Administration
Note: Expenditure excludes all Transfer payments.
46
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
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%
21,096,000
21,096,000
-
100%
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%
120,000,000
120,000,000
-
100%
13,820,251
13,820,251
0
100%
1,280,000
1,279,036
964
100%
340,625,000
208,269,891
132,355,109
61%
400 000
400 000
-
100%
24 387 098 251
23 921 111 043
465 987 208
98%
Social Housing Regulatory Authority: Operational
Social Housing Regulatory Authority: Capital
Restructuring Grant
National Urban Reconstruction and Housing Agency
Bursaries Scheme
UNHABITAT
Rural Households Infrastructure Development
SAPI Conference
Total
49
HUMAN SETTLEMENTS DEVELOPMENT
GRANT EXPENDITURE: 31 MARCH 2013
Provinces
Eastern Cape
Free State
DORA
Allocation
2011/12
Roll Overs
Funds
Withheld/
Stopped
Total
Available
Actual transfer
Amount
received by
Province
Amount
spent by
Province
R'000
R'000
R'000
R'000
R'000
R'000
R'000
2 292 859
-
(284 813)
2 008 046
2 008 046
2 008 046
2 001 816
100%
961 619
2 716
-
961 619
961 619
961 619
964 335
100%
-
4 003 776
4 003 776
4 003 776
4 001 589
100%
-
2 915 297
2 915 297
2 915 297
2 915 297
100%
(46 114)
1 425 503
1 425 503
1 425 503
1 315 532
92%
-
965 127
965 127
965 127
953 062
99%
-
339 551
339 551
339 551
339 538
100%
-
1 050 933
1 050 933
1 050 933
1 050 855
100%
-
1 725 180
1 725 180
1 725 180
1 725 180
100%
(330 927 )
15 395 032
15 395 032
15 395 032 15 276 204
99%
Gauteng
4 003 776
KwaZulu-Natal
2 915 297
Limpopo
1 471 617
Mpumalanga
965 127
Northern Cape
339 551
North West
1 050 933
Western Cape
1 725 180
Total
% Spent
15 725 959
-
2 716
50
DELIVERY PERFORMANCE
Annual Delivery Targets
Province
Sites
(units)
Top
Structure
(units)
Total
Delivery
Targets
Delivery Performance as at 31 March
2013
Sites
(units)
Top
Structure
(units)
Eastern Cape
17,366
17,999
35,365
10,372
12,998
Free State
27,264
8,300
35,564
5,070
5,209
Gauteng
14,536
26,348
40,884
7,861
9,305
29,399
38,704
14,577
17,760
Mpumalanga
5,914
Northern Cape
Total
Delivery
Performance
Total
Variance
Delivery
(6,994)
(5,001)
(11,995)
10,279 (22,194)
(3,091)
(25,285)
21,310
29,171
(6,675)
(5,038)
(11,713)
6,063
25,251
31,314
(3,242)
(4,148)
(7,390)
32,337
1,951
12,009
13,960 (12,626)
(5,751)
(18,377)
10,015
15,929
125
7,605
7,730
(5,789)
(2,410)
(8,199)
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)
103,986
137,308
241,294
45,937
114,742
160,679 (58,049)
(22,566)
(80,615)
KwaZulu-Natal
Limpopo
Total
23,370
Variance
Variance
Delivery
Delivery
Top
sites
Structure
51
PERFORMANCE OF THE USDG AS AT
31 MARCH 2013
Year to date (1 April 2012 - 31 March 2013)
Municipalities
Allocated
Rollovers
Funds National
R'000
Buffalo City
499 474
Nelson Mandela
592 870
Mangaung
485 967
Ekurhuleni
1 212 537
City of JHB
1 290 748
City of Tshwane
eThekwini
City of Cape Town
Total
R'000
267 314
Total
Available
R'000
Variance Variance
Transferred Spent by Spent vs. Spent vs. Transfer- Spent as Unspent
as % of
red as %
Funds Municipality TransferTotal
% of Total
Total
of
voted
red
Available
Available
Available
funds
R'000
R'000
R'000
R'000
766 788
499 474
155 021
344 453
611 767
100%
20%
80%
592 870
592 870
314 414
278 456
278 456
100%
53%
47%
614 545
485 967
300 192
185 775
314 353
100%
49%
51%
1 212 537
1 212 537
607 300
605 237
605 237
100%
50%
50%
76 439
1 367 187
1 290 748
483 366
807 382
883 821
100%
35%
65%
1 051 070
10 118
1 061 188
1 051 070
610 211
440 859
450 977
100%
58%
42%
1 287 560
28 369
1 315 929
1 287 560
386 507
901 053
929 422
100%
29%
71%
971 980
70 869
1 042 849
971 980
483 346
488 634
559 503
100%
46%
54%
7 392 206
581 687
7 973 893
7 392 206
3 340 357 4 051 849 4 633 536
100%
42%
58%
128 578
52
PERFORMANCE OF THE USDG AS AT
30 JUNE 2013
Year to date (1 July 2012 - 30 June 2013)
Municipalities
Buffalo City
Nelson Mandela
Allocated
Funds National
R'000
499 474
Rollovers
R'000
267 314
592 870
Mangaung
485 967
Ekurhuleni
1 212 537
City of JHB
1 290 748
City of Tshwane
1 051 070
Total
Available
Transferred Spent by
Unspent Spent as
Funds
Municipality allocation % of Total
Available
R'000
R'000
R'000
R`000
766 788
499 474
73%
558 609 208 179
592 870
592 870
100%
592 870
614 545
485 967
491 560
122 985
1 212 537
1 212 537
1 141 847
70 690
94%
76 439
1 367 187
1 290 748
1 322 632
44 555
97%
10 118
1 061 188
1 051 070
1 061 188
128 578
80%
100%
-
eThekwini
City of Cape Town
Total
1 287 560
28 369
1 315 929
1 287 560
100%
1 315 929
971 980
70 869
1 042 849
971 980
976 571
66 278
7 392 206
581 687
7 973 893
7 392 206
7 461 206
512 687
53
94%
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.
EMPHASIS OF MATTERS IN THE AUDIT
REPORT CONT.
• 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)
EMPHASIS OF MATTERS IN THE AUDIT
REPORT CONT.
• 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
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