DEPARTMENTAL PERFORMANCE REPORT:

JANUARY- MARCH 2013

PORTFOLIO COMMITTEE FOR HUMAN SETTLEMENTS

VISION “A NATION HOUSED IN SUSTAINABLE HUMAN SETLLEMENTS

WITH ACCESS TO SOCIO – ECONOMIC INFRASTRUCTURE”

MISSION “ TO ESTABLISH & FACILITATE A SUSTAINABLE PROCESS THAT PROVIDES EQUITABLE ACCESS TO ADEQUATE HOUSING FOR ALL WITHIN THE CONTEXT OF AFFORDABILITY OF HOUSING,

SERVICES, ACCESS TO SOCIAL AMENITIES & ECONOMIC OPPORTUNITIES”

CONTENT

1. Departmental Fourth Quarter Performance Per Programme

2. Overall Departmental Performance3. Communication and Outreach key4. Delivery Agreement (Outcome 8)5. Job Creation6. Accreditation of Municipalities7. Sanitation Progress8. Entities performance9. Financial issues

3

DEPARTMENTAL FOURTH QUARTER PERFORMANCE PER PROGRAMME

OVERALL DEPARTMENTAL PERFORMANCE

Outstanding targets January – March 2013Core Business Units

Programme 2: Human Settlement Delivery Frameworks

Governance Frameworks• Approved governance frameworks and implementation guidelines for

2012/13• Three research report on the identified themes in the research agenda • All research request received during the period under review completed • 1 report on Functional Governance Framework System • One human settlements review published • Updated and serviced research nucleus Operational Frameworks• Two reports on discussion forum for research dissemination developed and

submitted • Approved policies and framework by the Director General Advisory Services• 2 Provincial and Municipal human settlement policy workshops and compile

reports on the workshops • Approved project integration services master plan

7

Programme 3: Human Settlement Strategy & Planning

Human Settlements Planning• 1 report on revision of provincial and municipal planning frameworks • 1 report on 2 Provincial capacitation in the development of human settlements

planning frameworks Human Settlement Strategy• Draft Human Settlements green paper developed for consultation• Draft report on three evaluations on progress IGR• 1 Monitoring report on the implementation of the Program of Action (PoA) of the

Social Contract for sustainable human settlements • 1 report on Department’s engagements –co-ordinated multiple sector

departments • 1st draft of Human Settlements disaster management plan submitted to MinMecCFO• Approved business plan for Official Development Assistance (ODA) strategy

8

Programme 4: Projects and Programme Management

Programme Implementation Facilitation• Approved strategy to guide the implementation of rental and social housing

Community Residential Units and Corporate policy

Monitoring and Evaluation• Approved Monitoring and Evaluation framework for human settlements projects• 1 Monitoring report on Human Settlements project performance• 1 monitoring report on Human Settlements Index• Annual report on the impact assessment of two programmes

National Sanitation Programme• Approved sanitation strategy; policy and implementation plan• 1 report on municipalities supported with the assessment of Water Services

Development Plans (WSDP)• 1 monitoring report on the eradication of formal bucket sanitation system

9

HS SECTOR PERFORMANCE JANUARY TO MARCH 2013

COMMUNICATION AND OUTREACH

11

• Kenyan delegation visit - 1 March 2013.

• Benguela Delegation Visit To Cornubia – 13 February 2013.

• Guided visit to projects; Fleurhof and Jabulani hostel.

• EAAB Board member announcement 7 March 2013

• Launch of the Chair for Education in Human Settlements 19 March 2013

• Preparation for Project launch - Walmer Link, PE

• Preparation for Danida Energy Efficiency Pilot Project – N2 Gateway

12

OUTCOME 8 – UPGRADING OF INFORMAL SETTLEMENTS PROGRESS

Performance to date:

• 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.

13

OUTCOME 8: UPGRADING OF INFORMAL SETTLEMENTS PROGRESS CONTI…..

Prov 2014Target

Total delivery (1 April 2010 to 31

March 2013)

Delivery 2012/13

% of target2014

EC 59 440 22 600 9 254 38.1

FS 26 400 18 196 7 885 68.9

GP 96 760 44 362 7 733 45.8

KZN 76 200 20 266 6 966 26.6

LP 31 200 20 624 5 803 66.1

MP 26 480 12 340 4 180 46.6

NC 9 320 5 515 1 989 59.2

NW 28 840 13 829 872 48.0

WC 45 360 19 866 8 940 43.8

TOTAL 400 000 177 598 53 622 44.4

14

OUTCOME : UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)

Province 2014TARGET

Total delivery (since inception to 31 March

2013)INCLUDING USDG

%of target2014

EC 59 440 44 231 74.5

FS 26 400 18 196 68.9

GP 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

15

OUTCOME 8: PROVISION OF WELL- LOCATED RENTAL ACCOMMODATION

• Up to 31 March 2013 a total number of 35 641 affordable rental accommodation was provided.

• Represents assistance from both the HSDG and USDG.

• Represents 44, 6% of the 2014 target.

• If the private sector contribution is added, a total number of 43 884 rental units was provided representing 54, 9% of the 2014 target.

16

OUTCOME 8: PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION CONTI…

ProvTotal

deliveryDelivery 2012/13

% of 2014

target

TOTAL delivery

(including USDG)

% of 2014target

(including USDG)

EC 2 521 1 475 21.2 2 995 25.2

FS 2 056 1 039 38.9 3 293 62.4

GP 10 368 3 816 53.9 10 547 54.8

KZN 7 708 4 378 50.6 8 150 53.5

LP 136 0 2.2 136 2.2

MP 739 244 14.0 675 14.0

NC 290 290 15.6 5 15.6

NW 2 868 2 480 49.7 2 868 49.7

WC 6 523 2 122 71.9 6 790 71.9

Total 33 209 15 844 41.6 35 641 44.6

17

OUTCOME 8: HECTARES OF LAND RELEASED FOR HUMAN SETTLEMENTS DEVELOPMENT

• In terms of Outcome 8, the Housing Development Agency (HDA), identified 69 163 ha of state land for possible release, 47 604 ha have been assessed for suitability and 7 477,5 ha has been released (FS, GP, KZN, LP & NW).

• Provincial Human Settlements Departments also acquired land for human settlement development.

18

OUTCOME 8: IMPROVED PROPERTY MARKET

• Mortgage Default Insurance Scheme:– Concurrence from the National Treasury for MDI is still outstanding

• 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.

19

OUTCOME 8: IMPROVED PROPERTY MARKET CONTI…

• 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.

20

OUTCOME 8: DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED

Institution Total delivery Delivery 2012/13 % OF 2014 TARGET

NHFC (Mortgage Loans) 1 791 12 92.892.8

NHFC (Incremental Loans) 12 968 5 333 31.931.9

NHFC (Wholesale funding) 21 964 7 058 55.855.8

NHFC (Leverage) 5 917 1 689 46.146.1

RHLF 125 141125 141 44 80944 809 68.868.8

NURCHA 8 1108 110 1 8131 813 70.870.8

TOTAL 175 891175 891 60 71460 714

21

JOB CREATION

The delivery of 17198 serviced stands and 39942 completed houses created an estimated 21204 job opportunities during the fourth quarter of 2012/13 financial year.

National TOTAL EMPLOYMENT CREATED

Direct Indirect Induced Total

Serviced Stand

2 284

230

1 065

3 579

Top Structure

9 033

1 506

7 086

17 625

Total 11318 1735

8151

21204

22

ACCREDITATION OF MUNICIPALITIES

• Minister of HS, on behalf of the relevant MECs, requested the FFC to review the financial & fiscal implications of the assignment of the function to administer national housing programmes to the 6 metros

• FFC agreed to work within the MINMEC-adopted time-frames – March deadline.

• Agreed re legislative & policy context for assignment – compliance with the Constitution.

• Agreed re rationale for assignment.• Conducted assessment of the Submission against the Commission’s

Manual for Function Shifts.• FFC review is favourable & paves way for the formal assignment process

can proceed.• Consultation is now underway to establish the required actions and time-

frames.

23

SANITATION: TRAINING

Funding proposals on implementation of training programmes

– A funding proposal for funding of three (3) skills development initiatives in response to CETA’s call for application to discretionary funding of sector skills development initiatives in line with their 2012/13 financial year targets.

The different types of training for which funding is applied are: training of artisans through apprenticeships; short skills programme training in construction material manufacturing; and training on plumbing.

The targeted training programmes are aimed at capacitating youth and other people with lower skills levels to undertake higher level theoretical and practical training in construction so that they are employable at the end of training. The other objective is to increase the pool of SMMEs, cooperatives and NPOs in the construction sector.

– More training funding proposals will be developed for submission to potential funders including the CETA .

24

SANITATION: WSA SUPPORT

– Between January 2013 and March 2013, only 6 support rollout inception and follow-up meetings were held with 6 newly identified municipalities in Eastern Cape, Free State and Limpopo where the team either introduced the Sanitation Job Creation Programme at the new municipalities and key support areas addressed or municipalities engaged on the developed draft support plans.

– Follow-ups were also made with DHS Western Cape Sanitation team on the Drakenstein LM SMME development workshop to be facilitated by the Department of Trade and Industry (DTI)’s Cooperative Incentive Scheme. Workshop to explore the approach to supporting Drakenstein LED Unit in establishment and development of new and existing SMMEs / cooperatives.

– One (1) draft support plan was developed for input and comments from relevant officials at Madibeng Local Municipality in North West, whereas two action plans were developed for actioning at Ventersdorp and Kgetleng Municipalities after discussions with relevant officials. Training of beneficiaries at the two municipalities was also discussed.

25

SANITATION: SUPPORT PROVIDED

• Support to existing sites (Cooperatives / SMMEs)– Tonga Precast Cooperative is currently supported to get manufacturing off the

ground. DTI support through the Cooperative Incentive Scheme will be linked to

the project; Cooperative is also assisted with sourcing of funding from CETA for

training of beneficiaries. No Project Steering Committee meeting was held at the project site

during the current reporting period, although support is ongoing. Members of the cooperative are currently using two (2) paving brick

machines to manufacture paving bricks. Their immediate needs are: cement bags, technical training as well as

assistance with accessing the market. A funding proposal on technical training of the cooperative members will be developed and submitted to the CETA for consideration. The CETA also supports skills development in respect of materials manufacturing.

26

SANITATION: RURAL HOUSEHOLD INFRASTRUCTURE PROGRAMME (JOB CREATION)

By end January 2013, the RHIP reportedly created 8,886 cumulative jobs since 2010 at 50 municipalities with Eastern Cape creating 2,902 jobs, Free State 396, KwaZulu-Natal 1,850, Limpopo 1,715, Mpumalanga 972, Northern Cape 70 and North West 981.

Furthermore, by end of February 2013 the programme reportedly created 4,557 jobs during Phase 3 of implementation at 28 municipalities in Eastern Cape, Free State, KwaZulu-Natal, Limpopo, Mpumalanga, North West and Northern Cape. Of this total jobs created, 836 were for women, about 2,273 youths, 17 people living with disabilities and 1,431 other groups.

27

SANITATION: RURAL HOUSEHOLD INFRASTRUCTURE PROGRAMME (JOB CREANTION CONTI…)

Skills and jobs the RHIP had planned to develop and create are in areas of: brick laying, pit lining, reinforced concrete manufacture (slab casting), quality assessment (technical standards), health and hygiene and user education skills for peer educators within the beneficiary communities , and other jobs such as transportation of materials, assembly of the pre-cast top structures and any additional skills which to be utilized were to depend on basic numeracy and literacy.

Jobs that were created within the RHIP were in pit digging and lining as well as assembly of prefabs and slabs.

Contractors sub-contracted to the RHIP continue to participate in implementation of sanitation projects in phase 2 of the programme.

28

ENTITIES PERFORMANCE: SOCIAL HOUSING REGISTRATION AUTHORITY

• As at the end of the 4th quarter a total of 43 SHIs have been accredited of

which 8 are fully accredited, 12 conditionally accredited, 23 pre-

accredited and 8 were declined.

• Finalised SHIP 3B Contracts signing.

• Preparation for the SHIP 4A Call for Proposals, this will be a closed call for

proposals – only Accredited SHIs should apply.

• First draft of the National Social Housing pipeline has been completed and

presented to a number of provinces for their endorsement.

29

ENTITIES PERFORMANCE: SOCIAL HOUSING REGISTRATION AUTHORITY CONTI

• The SHRA is in the process of developing a regulatory framework centered

on risk based approach, with this the regulatory framework SHRA seeks to

find a better way of measuring performance of the Social Housing Sector

in the process.

• The reporting SHI tool for the 4th quarter has been received and

currently being assessed, feedback will be given to the SHIs by May 2013.

30

HOUSING DEVELOPMENT AGENCY

• The agency facilitated the release of two state properties in Rustenburg

Municipality measuring approximately 4269.2815ha and two properties in

Madibeng Municipality measuring approximately 1089.4311ha.

• The agency also facilitated the release of 754.6182ha of state land in

Maluti-a-Phofung.

• The agency facilitated the acquisition, transfer and registration of

295.2526ha of private land in Ventersdorp.

31

HOUSING DEVELOPMENT AGENCY CONTI...

• Two Johannesburg inner city landed properties measuring 0.3964ha have

been transferred and registered in the HDA’s name.

• Five Servcon properties measuring approximately 746.5626ha have been

acquired nationally.

• An implementation protocol was concluded with KZN Department of

Human Settlements.

• The community consultation process has commenced. Informal

Settlement Upgrading work is well underway in the Northern Cape and

rapid assessments in six settlements have also been undertaken.

32

NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY

SUBSIDY HOUSING PROGRAMME

• The Subsidy Housing Programme signed 5 contract against a target of 11.• Despite the lower than expected volume of contracts signed for the

quarter, the value of projects achieved R416 million against a target of R 277 million.

• Houses and sites in signed contracts were 6 073 against a target of 4 235.• Houses Built and sites Serviced achieved 650 units against a target of 20.• The Subsidy Housing Programme will be greatly influenced by the roll out

of the Contractor Finance and Development Programme (CFDP) initiative which is expected to drive project volumes in the new year.

33

NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY CONTI...

AFFORDABLE HOUSING PROGRAMME

• Performance in the Affordable Housing Programme is generally below target.

• Value of Projects achieved R223 million against a target of R115 million.• 3 Contracts were signed against a target of 8.• 101 Houses Built & sites serviced were achieved against a target of 345.• The entity is also engaging with relevant parties to consider increasing the

product offering into the rental market.• The Affordable Housing Programme is making significant inroads into

national expansion with discussions held with developers in Eastern Cape, K Z N and Western Cape.

34

NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY CONTI...

INFRASTRUCTURE AND COMMUNITY FACILITIES PROGRAMME• The Infrastructure and Community facilities programme has suffered

significant losses resulting in NURCHA adopting a payment certificate based lending approach as part of its credit criteria. This was an expected consequence of the change in credit rules

• The programme has performed poorly for the quarter under review

• Projects completed achieved 50% of its target of 2 for the quarter

• Due to the risk associated with this lending programme NUCHA’s Board is reviewing continued lending to contractors undertaking infrastructure and community facilities and will take a final decision in due course.

35

RURAL HOUSING LOAN FUND

• The RHLF’s performance in the fourth quarter was in general below targets as a result of funding constraints.

• Cash disbursements were R22.2million which was R3.2 million below the set target.

• The Number of loans achieved for the quarter were 9034 which was slightly less than the budget figure of 9551.

• Percentage of the number of loans used for housing related purposes exceeded the target of 80%.

• Percentage of loans accessed by borrowers with income of R3500 and less achieved 65.8% exceeded the minimum target of 60%

• Operating surplus before taxation was higher that the budgeted figure.• Value of loans in place was below the quarterly target.• Loans that have been approved but could not be paid out due to lack of

funds amount to R60million..

36

NATIONAL HOME BUILDERS REGISTRATION COUNCIL

NON-SUBSIDY SECTOR

• Registration of new home builders achieved 711 against a target of 835.

• Renewal of registered Home Builders were 2 916 against a target of 2 860.

• Enrolments of new homes were 9 683 against 5 384.

• Late enrolments of new homes were 629 against a target of 269.

• The Number homes inspected in fourth quarter was 29 475.

• Number of inspections performed in the fourth Quarter was 65 823.

37

NATIONAL HOME BUILDERS REGISTRATION COUNCIL CONTI…

NON-SUBSIDY SECTOR

• The number of complaints lodged in the fourth quarter is 157, of which 114 have potential risk of major structural defects. Management’s target is to resolve a complaint or escalate to conciliation process within 30 days of receipt.

• A total of 1,906 applications for late enrolment certificates were issued during the fourth quarter. The risk for late enrolments in the Non-Subsidy is mitigated through the provision of financial guarantee from the home builder.

• The NHBRC’s engagement with the Provincial Departments of Human Settlement is beginning to bear positive result as we have noted a significant improvement in the submission of projects prior to construction.

38

NATIONAL HOME BUILDERS REGISTRATION COUNCIL CONTI…

SUBSIDY SECTOR

• A total of 10 projects enrolments consisting of 9,459 units were received

in the quarter and approved.

• A total of 427 home enrolments consisting of 45,699 units were captured

and approved in the quarter.

• A total of 586 home enrolments projects were approved consisting of

41,633 units were approved.

• Number of subsidy homes inspected were 30,736.

• The number of inspections conducted were 59,264.

39

ESTATE AGENCY AFFAIRS BOARD

• There were 1744 New Registrations in the fourth quarter as compared to

1395 in 2012.

• There were 4348 Renewals in quarter under review compared to 4003 in

2012.

• There were no claims committee meetings held in the fourth quarter.

• There were no appeals held in the fourth quarter.

• 398 Complaints were raised in the quarter under review.

40

ESTATE AGENCY AFFAIRS BOARD CONTI…

• 519 inspections were performed compared to 300 target for the quarter.

• 61% of the 331 candidates who wrote the NQF Level 4 PDE exam passed.

• 67% of the 86 candidates who wrote the NQF Level 5 PDE exam passed.

• 207 Estate Agents applied and qualified for exemption from the PDE as

per statutory requirement.

41

NATIONAL HOUSING FINANCE CORPORATION

• The fourth quarter saw a marked improvement in the conversion of approvals to disbursements with disbursements of R253 million

• The approved loans at year-end stood at R1.385 billion which bodes well for the disbursements target for the first quarter or two of 2013/14.

• Of significance is the initiative with I HS where the NHFC, as an anchor investor, will partner with the International Finance Corporation to generate impact of 43 000 housing units as well as leverage additional equity of R3 billion and additional R10 billion of debt funding in a transaction for which shareholder approval is still be sought.

• The overall financial performance of the NHFC was negatively impacted by the low growth in the loan book, the conversion of certain loans to equity, the continued low interest rate environment (a 0.50% drop in interest rates in July 2012 resulted in a R7.5 to 8.0 million decrease in lending income) and certain early loan settlements by clients.

42

NATIONAL HOUSING FINANCE CORPORATION CONTI…

• Projects: R290 million was achieved versus a revised budget of R379.9 million.

• Projects delivered 7 486 housing units versus 4 722 in the revised budget. • The NHFC has been able to achieve much success through the impact of

leveraging third party funds which delivered over 4 000 of the above units.

• The division was also successful in leveraging over R1.38 billion in third party funding against a revised budget of R964 million.

• Constrained lending by banks for project finance to developers and mortgage loans to homeowners continued to be a challenge during the year.

• The Commercial division achieved R168 million versus a revised budget of R109 million.

43

NATIONAL HOUSING FINANCE CORPORATION CONTI…

• Strategic Partnerships and Investments: R20 million was disbursed versus a revised budget of R91 million. The unit under-achieved largely as result of a delay in the finalisation of the I HS transaction, amongst other things.

• The MDIC business plan is currently being appraised by National Treasury and its appointed consultants - PwC. A decision is expected from National Treasury around the nature and quantum of capitalisation of MDIC in April/May 2013 which will guide the next steps of the project, including the license application from FSB

• With respect to FLISP, while 8 Provinces have signed implementation Protocols (IP’s) with the NHFC, only 5 Provinces have committed funds to the programme.

• An amount of R170 million has been transferred to the NHFC, with about R 1.025 million of the funds already transferred to the approved beneficiaries.

44

FINANCIAL ISSUESADJUSTMENTS TO ALLOCATION

Programme Adjusted Allocation

Virements Revised Allocation

1. Administration 256,606,000 (20,500,000) 236,106,000

2. Housing Policy, Research and Monitoring

46,719,000 46,719,000

3. Housing Planning and Delivery Support

236,460,000 (12,300,000) 224,160,000

4. Housing Development Finance 24,440,076,000 24,440,076,000

5. Strategic Relations and Governance

157,944,000 32,800,000 190,744,000

Total 25,137,805,000 - 25,137,805,000

45

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).

46

EXPENDITURE PER PROGRAMME AS AT 31 MARCH 2013

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 32,355,670 14,363,330 69%

3. Housing Planning and Delivery Support

224,460,000 143,667,038 80,792,962 64%

4. Housing Development Finance

24,440,076,000 23,993,326,697 446,749,303 98%

5. Strategic Relations and Governance

190,444,000 154,119,264 36,324,736 81%

Total 25,137,805,000 24,497,786,453 640,018,547 97%

47

OPERATIONAL EXPENDITURE AS AT 31 MARCH 2013

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 32,355,670 14,363,330 69%

3. Housing Planning and Delivery Support

210,639,749 129,846,787 80,792,962 62%

4. Housing Development Finance 68,478,000 53,195,325 15,282,675 78%

5. Strategic Relations and Governance

189,164,000 154,119,264 35,044,736 81%

Total 751,106,749 543,834,830 207,271,919 72%

Note: Expenditure excludes all Transfer payments.

48

GRANTS AND TRANSFER PAYMENTS AS AT 31 MARCH 2013GRANTS AND TRANSFER PAYMENTS AS AT 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%

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 340,625,000 240,085,372 100,539,628 70%

Total 24,046,073,251 23,715,145,287 431,467,592 99%

49

REASONS FOR UNDER SPENDING: HSDG

• Human Settlements Development Grant

– Eastern Cape Provincial Human Settlements Department declared

savings of R284 million and

– Limpopo Provincial Human Settlements Department declared savings

of R47 million.

– This amounts to a total of R330 million which translate into 2% of the

total allocation of the grant.

50

REASONS FOR UNDER SPENDING: RHIP

• Rural Household Infrastructure Grant– The building of toilets for the 2012/13 financial year was delayed

because service providers had to finish work from the previous

financial year.

– Additional service providers had been delayed, but at year end work

was still underway and subsequently started late in February 2013.

– Of an adjusted budget of R340.6 million, only R240 million (70%) was

spent leaving a balance of R100.5 million unspent.

HUMAN SETTLEMENTS DEVELOPMENT GRANT EXPENDITURE AS AT 31 MARCH 2013

51

Provinces

DORA Allocation 2012/13

Adjustments Provincial Rollovers

Total Available

to Provinces

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

Transferred Funds

Spent by Provinces

Variance Spent vs

Voted

Variance Spent vs

Total Available

Spent as % of Total

Available

Unspent as % of Total

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

Eastern Cape 2,292,859 133,829 2,426,688 2,008,046 2,003,042 289,817 423,646 83% 17%

Free State 961,619 961,619 961,619 964,335 -2,716 -2,716 100% 0%

Gauteng 4,003,776 4,003,776 4,003,776 4,001,589 2,187 2,187 100% 0%

KwaZulu-Natal 2,915,297 2,915,297 2,915,297 2,915,297 - - 100% 0%

Limpopo 1,471,617 111,580 1,583,197 1,425,503 1,315,532 156,085 267,665 83% 17%

Mpumalanga 965,127 965,127 965,127 953,062 12,065 12,065 99% 1%

Northern Cape 339,551 339,551 339,551 339,538 13 13 100% 0%

North West 1,050,933 150,334 1,201,267 1,050,933 1,050,855 78 150,412 87% 13%

Western Cape 1,725,180 1,725,180 1,725,180 1,725,180 - - 100% 0%

Total 15,725,959 395,743 16,121,702 15,395,032 15,268,430 457,529 853,272 97% 3%

DELIVERY PERFORMANCE

52

Province

Annual Delivery Targets Delivery 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 17,416 17,367 34,783 10,458 12,084 22,542 (6,958) (5,283) (12,241)

Free State 11,722 8, 736 19 458 5,070 5,477 10,547 (22,194) (2,823) (25,017)

Gauteng 14,536 26,348 40,884 7,677 21,220 28,897 (6,859) (5,128) (11,987)

KwaZulu-Natal 9,305 29,399 38,704 6,063 25,940 32,003 (3,242) (3,459) (6,701)

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 7,623 7,748 (5,789) (2,392) (8,181)

Northern Cape 2,785 2,646 5,431 2,019 2,820 4,839 (766) 174 (592)

North West 3,717 11,666 15,383 2,209 14,424 16,633 (1,508) 2,758 1,250

Western Cape 9,325 15,416 24,741 8,253 13,534 21,787 (1,072) (1,882) (2,954)

Total 104,839 138,917 243,756 43,825 115,131 158,956 (61,014) (23,786) (84,800)

USDG Expenditure as at 31 March 2013

53

Municipalities

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

Allocated Funds

NationalRollovers Total

AvailableTransferred

FundsSpent by Metro’s

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 499,474 267,314 766,788 499,474 155,903 343,571 610,885 100% 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 1,212,537 640,628 571,909 571,909 100% 53% 47%

City of JHB 1,290,748 76,439 1,367,187 1,290,748 493,207 797,541 873,980 100% 36% 64%

City of Tshwane 1,051,070 10,118 1,061,188 1,051,070 654,014 397,056 407,174 100% 62% 38%

eThekwini 1,287,560 28,369 1,315,929 1,287,560 803,000 484,560 512,929 100% 61% 39%

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 3,844,704 3,547,502 4,129,189 100% 48% 52%

ChallengesThe following were recurring and major challenges impacting on service delivery and overall performance by the Department:

– Lack of adequate capacity resulting in non-performance of crucial duties, delay in accessing and processing of payments.

– Annual targets not cascaded into quarterly milestones, inconsistency between planned targets and expected or ultimate outputs, relocation of functions or units; and delay or postponement of projects and consultations or meetings by stakeholders including Provinces.

– Defaulting contracted service providers such as the one for courier services. However engagements were since made with the National Treasury for intervention on defaulting contracted service providers

– Lack of correlation between Performance Agreements of Members of Senior Management Service (SMS) and Programme Annual Performance Plans.

Challenges cont.– Failure to integrate planning, budgeting and reporting processes as

contemplated by the National Treasury Framework on Programme Performance Information, May 2007 and Framework for Strategic Plans and Annual Performance Plans, August 2010.

– Delayed procurement of office space.

– Delay in phasing out of the Debtors System due to lack of co-operation by Provinces to compile plans for the phasing out of the Debtors System despite efforts by the National Department. .

Performance Improvement Plan (PIP) / Remedial Measures

• Performance Improvement Plan (PIP) / Remedial Measures • Compulsory training in Performance Monitoring, Evaluation, Governance,

Accountability and Leadership;• Departmental Strategic Planning and Performance Monitoring Policy

reviewed to enhance Departmental Operations;• Compulsory Branch quarterly review sessions and development of PIPs

and Branch Review reports to the DG;• Introduction of the Enterprise Operations Assessment Framework;• Individual SMS Performance linked to Unit / Branch Performance

(Approved) ;• Exception Letters written to all Branch Managers who do not perform as

per predetermined objectives to explain remedial measures put in place or action taken to improve performance.

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