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PRESENTATION ON ASSET REGISTER

ENHANCEMENT PROJECT PROGRESS

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CONTENTS

• Purpose

• Background

• Progress

• Key focus areas

• Challenges

• Way forward

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PURPOSE

The purpose of the presentation is--

(a) To provide overall progress in respect of the Asset Register Enhancement Programme as well as highlight key areas that affect the overall performance thereof.

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BACKGROUND • Government’s desire to manage its immovable assets

effectively and efficiently necessitates an accurate and comprehensive Asset Register.

• The register is of strategic importance in the State’s drive to obtain the best functional, social and financial returns from its property portfolio and it underpins both the Devolution of budgets to Client Departments as well as the successful implementation of GIAMA

• Asset Management depends on accurate and reliable information in an asset register.

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BACKGROUND (Continued)

• Challenges such as client departments not advising the department when they vacate properties impact on the reliability of the asset register.

• In view of hereof, amongst others, the department has recognized the need to upgrade and enhance the immovable asset register and to this end has initiated the Asset Register Enhancement Programme.

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BACKGROUND (Continued)

• The Enhancement Program focuses on the following --• Verifying and capturing floor area extents of

immovable assets not previously populated• Enhancing existing information with the required

details to facilitate effective asset and property management ( Rental Charges)

• Comply with the Auditor General and Accountant General minimum requirements for essential fields in the asset register.

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PROGRESS• Regions actively collected and captured data with excellent

progress made to date.• Investigations to populate floor area extents per phase 1 of the

project revealed numerous discrepancies which is also researched and corrected by Regions.

• Outstanding units to be measured has decreased significantly although discrepancies has remained high.

• Regions also measured additional facilities not originally included in the scope of work increasing the overall progress percentage.

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Region No of Units to be measured Actual number of Units measured to date

Discrepancies identified

Eastern Cape (PE) 623 614 8

Free State 2,190 1642 576

Gauteng (Jhb) 5,711 3672 1641

Gauteng (Pta) 6,926 6063 *0

KwaZulu-Natal 3,936 (3,907) 3812 837

Limpopo 4,541 4329 549

Mpumalanga 1,832 2590 619

North West 2,627 1718 1135

Northern Cape 2,289 2091 212

Umtata 490 (519) 406 99

Western Cape 2,390 2195 211

TOTAL 33,555 29,132 5,887

PROGRESS (Continue)

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PROGRESS (Continue)

Region Number of Units outstanding

KwaZulu-Natal 19

Limpopo 23

Mpumalanga 336

Western Cape 338

Gauteng (Johannesburg) 555

Gauteng (Pretoria) 1370

Total 2,641 (7, 87%)

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PROGRESS (Continue)

0

5000

10000

15000

20000

25000

30000

35000

40000

Jan Feb/March April May Jun July Aug Sept Oct Nov Dec Jan Feb/March April May Jun July Aug Sept Oct Nov Dec

No of Units to be measured Cumulative total Units Measured to date Cumulative target (Based on 24 months)

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KEY FOCUS AREASMeasuring of floor areas (m²) – PHASE 1• In view of the devolution of budgets and

calculation of a fair value of our immovable assets, it has become critical for this Department to have the correct floor area (m²) utilized by a client department captured in the asset register which has almost been completed (93%). However, discrepancies still need to be corrected and updated on the asset register.

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KEY FOCUS AREAS (Continue)

Property Status – PHASE 2• In view of verifications done of facilities utilised by

clients and the importance of such data for the User Asset Management Plans linked to the devolution of budgets, it is necessary that the status of properties be updated on the register.

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CHALLENGES Correction of discrepancies remains a challenge, this includes: Improvements that were demolished and the information was never updated in

PMIS. Change of use of improvements Demolition of dilapidated & vandalised houses Non state-owned properties captured as state-owned. Unimproved land captured as improved properties Units incorrectly captured in PMIS Ownership of property Property Status

Land extent (ha) incorrectly captured as square metres (m²)

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CHALLENGES (Continue)

• Lack of capacity within the Utilisation & Contract Administration Units in Regional Offices. These Units are the key managers of the immovable asset register.

• The lack of a dedicated Asset Register Unit within the Regions impacts on the strategic focus of the Department to have a continuously updated and correct information in the Register

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WAY FORWARD

Phase 1 needs to be completed in terms of populating floor areas (m²) fields followed by the correction of discrepancies identified.

Phase 2 needs to be executed in terms of verification and corrected of exiting populated fields concentrating on property status, in order to comply with the essential data requirements of the Auditor and Accountant General

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THANK YOU

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Comments/Questions

• How were additional properties found?

• State owned properties and the Committee had oversight visit and the DPW is blamed for not up-keeping properties. Why? Representative of DPW unable to offer expected responses. Lack of synergy between PWD and DPW

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Comments/Questions

• Limpopo no structure; Thokoza SAPS is not in place. The DPW Budget where is that spent and why there are roll-overs? DPW as Asset Manager of State is obligated to account on all related properties. Key Focus Areas – UAMPs how does that relates to the Asset Register?

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Comments/Questions

• Lack of Capacity at Regional Offices and relevance to Red Tapes?

• DPW desire to manage its immovable assets effectively – the status needs to be corrected

• AM depends on accurate and reliable info in the Asset REGISTER, Why?

• Demolished Improvements not recorded and how does DPW spend to improve, demolish and no information recorded o the PIMS? How?

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Comments/Questions

• What happens to land where a building has been demolished?

• Non-State Owned Properties captured as State Owned, explain the Phrase?

• Unimproved land captured as improved properties, why?• Units incorrectly captured in PIMS? Why?• Land extent incorrectly captured as meters not squares.

Why?• Explanation of Ownerless Property

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Comments/Questions• It is the fist time the Committee received an Update on the

Asset Register – Previous responses lacked direction• Key Thing raised were beyond the borders of SA? Coming

to the Committee• Progress Report on the Asset Register is promising• EPWP and the concerns on whether or not Road

Infrastructure people are assisted to register own companies, e.g. Galeshewe

• Visit to Provinces depicted a process of people being paid differently – GP vs. KZN. Concern that people are sleeping and no one monitoring them

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Comments/Questions• Emerging Contractors and the registration and rating thereof? Concern

where they continue to work as labourers instead of contractors?• GP leading EPWP in an area (Boipatong) and the same person is not

monitoring project and contractors were paid monies. Why?• Client Departments, transfers made by those departments and DPW

unable to perform because there were no payments and departments likewise blaming DPW. E.g. no progress in the School building Programme

• Asset Register, what is the role of Land Affairs claiming to do own Asset Register;

• Leasing of Land and the responsibility and the programme

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Land Affairs

• Minister’s role in ensuring Asset Management and the responsibility of Land Affairs responsibility is in so far as vesting of property into the authority of relevant Department through the Deeds Register

• DFA responsibility for foreign based properties and what Minister Radebe directed how it should and that is now being re-visited

• Standing Task Team between DFA and DPW to promote congruency

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Emerging Contractors

• Unintended consequences of the register limited the of participation but latest data indicates improvements

• Contractors can now do work up to R1m and DPW/CIDB is reviewing Programme of work in excess of R2m but less than R30m

• Alignment Process is being finalized.

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Comments/Questions

• Two sides are dedicated to EPWP and the Committee needs more information especially failures and success of the Programme? Extent to which DPW participates in the process including removal of alien plants

• Respond of the DG regarding transfers of funds towards the financial year – 2005 complained about Katlehong and Heidelburg Courts. Land Realized to correct the Development Progress and to date Court has not been finalized?

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Comments/Questions

• 13 years down the line the Committee gets first report signals challenges and there is a wish that the Committee must have an oversight on this. Those doing audits must be able to unearth the wrongs done by those with necessary authority. Work in Progress and there will be a report in future

• Were there fraudulent activities in so far as registration and the handing over to the SAPS.

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Comments/Questions

• EPWP receives similar status of the Asset Register and look at a detailed report – Special Committee Meeting

• Which Municipalities have been capacitated enough to administer, manage and report on the EPWP – Detailed Reporting

• Committee agree that there is a flaw at Regional level when it comes to required Capacity levels – E.g. Rustenburg Municipality and the disposal that occurred to some people by a Region. Linkages between region and Municipalities

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EPWP

• Progress on funding• Alien Plants and eradication thereof• Exit Strategy and the rate DPW works with Municipalities

on related Programmes and local communities respond to DPW Programmes

• Project Visits are welcomed including making a detailed presentation to the Committee. 144 Municipalities have been targeted for the roll-out of the related EPWP and there are recorded challenges which are being addressed in-house and those stakeholders

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EPWP

• Entire EPWP will be subjected to a Mid-Term Review for the past two and half year and that will be submitted to the Cabinet Lekgotla

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Comments/Questions

• Committee suspects Provinces are not able to identify their assets – What is the role of NDPW on the updating of the Asset Register

• Launch of Projects where students were givens certificates in line with EPWP – National Construction Week

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ASSET REGISTER

• Property Description and extent• Ownership Status – Deeds Register• Type of Use and future Use• Valuation of the Property• Continued Management and/or Ultimate

qualification as a Redundant building thereby submitted for the Disposal Route

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Re-Affirmed Position

• Commissioned Research on the Mid-Term Review and impact of the Report on the Code of Good Practice – Re-entering of the Programme and the stipulated timelines and how that affects sustainable work. Cannot remain in the Programme for more than two years and if that is so it is regarded as permanent jobs.

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• Admissions on the Strategic Plan allows the committee to see areas that require intervention.