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TABLE OF CONTENTS

TABLE OF CONTENTS. Introductory Remarks MTEF Allocations Human Settlements Development Grant (HSDG) Allocations HSDG performance 30 June 2013 Business Plans and Analysis Challenges/ Constraints Mitigating Measures HSDG performance 31 August 2013 (PRELIM)

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TABLE OF CONTENTS

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  1. TABLE OF CONTENTS • Introductory Remarks • MTEF Allocations • Human Settlements Development Grant (HSDG) Allocations • HSDG performance 30 June 2013 • Business Plans and Analysis • Challenges/ Constraints • Mitigating Measures • HSDG performance 31 August 2013 (PRELIM) • Trends analysis 2011/2012 to 2012/2013 • Monthly Compliance • Monitoring and Evaluation

  2. Introductory Remarks cont, • The Department has been allocated a budget of R28, 1 in 2013 financial year of which 16, 9 billion is directed to the Human Settlement Development Grant and 9, 1 billion representing an Urban Settlement Department Grant. The different catering for other programmes including the Rural Household Infrastructure Grant and the operational budget. • Within the allocation of 16, 9 billion is an earmarked allocation of 299 million for Disaster Relief Grant for disaster stricken areas

  3. Introductory Remarks cont, • The HSDG together with the USDG seek to fund the establishment habitable, stable and sustainable human settlements for citizens to have access to social and economical amenities. • The HSDG is allocated to the approved business plans which categorises different programmes including the outcome 8 and National Priorities

  4. Introductory Remarks cont, • This conditional grant and performance of the programmes are monitored in terms of the approved monitoring framework that is in line with the Government Wide Monitoring Framework.

  5. Human Settlements Development Grant: 2013 MTEF allocation

  6. HSDG Allocation cont: 80/20 Split

  7. Human Settlements Development Grant: 20% allocation cont,

  8. National Priority Program: 20% All cont,

  9. National Priority Projects Performance • The performance information for Duncan Village reflected a non spending due to contractors that had left the site for non-availability of approved beneficiaries as well as cash flow challenges; • The report from Gauteng Province indicated that there are 1000 units delivered in Sweet-Waters with 878 units allocated to beneficiaries; • The performance information for Cornubia for the quarter ending of June 2013 was also not submitted; • The performance information for Lephalale Bulk Infrastructure for the month of June 2013 reflected a budget of R112.1 million, while no spending occurred: The conditional grant was withheld,... External verification of claims; • Information on Drommedaris is such that Western Cape Department has delivered 600 Units as a Priority Project.

  10. Human Settlements Development Grant Expenditure : 30 June 2013

  11. Human Settlements Development Grant • The total allocation in respect of the Human Settlements Development Grant for the 2013/14 financial year amounted to R16.9 billion and includes R299 million for the Disaster Relief allocation; • The total amount transferred to Provinces as at 30 June 2013 amounted to R2.941 billion, which represents 17% as projection of the total allocation; • Provinces spent R2.384 billion and this represents 14% of the total allocation and 86% of the projected figure; • The variance of R 556 million is carried over to the following month however it still lies in the Primary bank account of the province and is only accessible upon requests that align to the goods and services payable;

  12. HSDG Cont. • The North West Province spent the highest at 90.6%. • Of the R275.6 million spent, the Province delivered a total of 2 666 units consisting of 71 serviced sites and 2 595 top structures against an annual target of 20 283; • KwaZulu-Natal spent 88% and delivered 6 306 units consisting of 692 serviced sites and 5 614 top structures against an annual target of 36 700. • Northern Cape spent 83% and delivered 481 units consisting of 90 serviced sites and 391 top structures against an annual target of 11 660.

  13. HSDG Cont. • The lowest spending Province is Free State at 39%. • Mpumalanga Province’s business plan was approved on 26 June 2013 and funds were only transferred in the beginning of July 2013, however the actual expenditure is R77.8 million. The Province delivered a total of 1 583 units consisting of 0 serviced sites and 1 583 top structures from an annual target set at 15 287 units. • Free State Province indicated that the overall reasons for under performance occurred due to delays in procurement processes and cash flow management.

  14. HSDG Cont. • The Limpopo allocation for the 2013/14 financial year is R1.3 billion including R35.6 million for Disaster Relief. Although the Limpopo Province’s business plan was approved. No funds were transferred to the Limpopo Province as per National Treasury instruction issued on 19th April 2013, however the Province reported spending of R97.9 million and managed to deliver a total of 1 452 units consisting of 85 serviced sites and 1 367 top structures from an annual target of 22 453 units. • The expenditure incurred was through the province’s equitable share. According to the 2013/14 approved payment schedule b R224.9 million was supposed to have been transferred to Limpopo Province from April 2013 to June 2013.

  15. Delivery Performance: 30 June 2013

  16. Performance 1st quarter other milestones (Financial Interventions)

  17. Other milestones cont. • The previous table refers to other milestones that have a direct contribution to the development of serviced sites and the construction of houses. • The Financed Linked Individual Housing Subsidy Programme (FLISP) is applicable to households in the income category of R3 501 to R15 000 per month who do not qualify for a subsidised house and are also unable to obtain mortgage finance. These households may apply for the allocation of serviced stands developed under the Integrated Residential Development Programme if /as they qualify for the once-off subsidy.

  18. Other milestones cont. • The actual spending of R3 million was only incurred by Limpopo province. • Eastern Cape spent on the rectification programme 126% while Western Cape 41%. • The Operational Capital Budget Programme (OPSCAP) allows Provinces to augment their capacity required for housing delivery. 5% is allowed as a maximum allocation. This programme achieved a spending rate of 55%.

  19. Other milestones cont. • Blocked projects are incomplete projects that were stalled for various reasons. Funds are provided to unblock these projects and Provinces have spent 10% of their allocation in the first quarter. • Suitable land is identified for human settlements development and Provinces allocated funds for the acquisition of land through the Housing Development Agency.; • Of the R78 million allocated Provinces only R4 million was used for the procurement of land;

  20. Challenges • Challenges as per provinces: • Slow procurement processes • Poor Cash flow management • Non-availability of suitable land for human settlements developments • Department’s observations: • Lack of credible pipeline of projects • Poor planning and/or execution of the plans have always been a problem • Performance reporting is not always in line with the Business plans and this may suggest that plans are being developed for compliance purposes

  21. Interventions • Provinces and Municipalities to align all grants to ensure bulk infrastructure is in place before implementation of programmes and projects; • Provinces and Municipalities must develop and align programme and procurement plans • Feasibilties to ensure programme and project readiness. • Programme Management Units to be established and prioritised. • Provinces to utilise the HSS to administer and report on all human settlements delivery programme and processes.

  22. Business Plan Project Readiness

  23. Business Plan Readiness cont. • The average number of units planned for delivery, nationally per project is 163 per annum; • Only KwaZulu Natal has planned its delivery potential and aligned it with the requisite procedures to meet with the capability to deliver during 2013 - 2014. • KwaZulu Natal is followed by Mpumalanga which will not be able to deliver on 4 of its 52 planned projects. • Delivery in the remaining provinces will be extremely poor. This has implications, not only on actual delivery for the human settlements sector, the capability to spend the current HSDG allocation but also for the credibility of the provincial Business plans.

  24. Delivery (Apr ‘13 – July ‘13) (Single Figure) in relation to estimated Targets Target based on data used in Dept Presentation, 05 June 2013

  25. Delivery Performance 2013/14 (Apr – July) in relation to Estimated Targets Target based on data used in Dept Presentation Note: 2013/14 delivery figures are up to end July 2013 and are preliminary.

  26. Human Settlements Development Grant Expenditure: 31 August 2013 (PRELIM)

  27. Human Settlements Development Grant: Allocation Trends 2011/12 to 2012/13

  28. Human Settlements Development Grant: 2011/12 Expenditure Performance

  29. Disaster Relief Grant: 2011/12 Expenditure Performance

  30. Human Settlements Development Grant: 2012/13 Expenditure Performance

  31. Monthly Conditional Grant Reports

  32. Brief assessment of the Department’s monitoring capacity for the 2013/14 financial year • The Department has the Chief Directorate: Monitoring and Evaluation (CD: M&E) responsible for monitoring and assessing the implementation, performance and impact of National Human Settlements Policies, Programmes, and projects. • The CD: M&E has four directorates • Programme Monitoring • Research and Evaluation (Applied Research) • Programme Impact Assessment • Data Management, Verification and Analysis • The National Department has a Monitoring, Evaluation and Impact Assessment (MEIA) Policy and Implementation Framework for the Human Settlements Sector which applies to: • all the Departments of Human Settlements at the National, Provincial and Municipal levels • all the Human Settlements Institutions created by the National and Provincial Human Settlements Departments to facilitate the Human Settlements delivery process. 

  33. Brief assessment of the Department’s monitoring capacity for the 2013/14 financial year • The following activities will be carried out in 2013/14 financial year (as per DORA): • Project level monitoring – • visit Provinces on a quarterly basis to make follow-ups to verify and validate Human Settlements delivery • provide systems that include Housing Subsidy System ( HSS) and MEIA System that support the administration of the human settlement delivery process • alignment of the monitoring and evaluation systems (HSS and MEIA) and ensure uniformity of reporting amongst Provincial Departments and other role players within the chain of Human Settlements delivery. • provide continuous training to Provinces on HSS and MEIA systems. Conduct and participate in the workshops, bilateral meetings (M&E task team) to keep them abreast with the development of monitoring and evaluation • Facilitate regular interaction between national, provincial departments of human settlements and municipalities through structured quarterly performance review meetings

  34. Brief assessment of the Department’s monitoring capacity for the 2013/14 financial year • The following activities will be carried out in 2013/14 financial year (as per DORA): • Impact assessments (Conducting Baseline Study for Informal Settlements Targeted for Upgrading) – • Assessing the relevance, performance and success of the Human Settlements programmes • evaluating the outcomes and impacts of the Departmental programmes. Collect data and information through consultation groups with the relevant sources of particular programmes • Write reports based on the recommendations and lesson learned when conducting evaluation and impact assessments

  35. Brief assessment of the Department’s monitoring capacity for the 2013/14 financial year • The following activities will be carried out in 2013/14 financial year (as per DORA): • Annual performance report of the sector – • Submit an annual evaluation report for the previous financial year to National Treasury by end of July of the in-year • Evaluate the audited provincial annual reports for submission to National Treasury by mid-December of the in-year • Rapid appraisals (appraisal of Outcome 8 performance) – • Collect data that will be used to conduct future evaluations targeted at: • Strengthening the implementation and improving the performance (efficiency and efficacy of operational processes) of the programme • Determining the nature and sustainability of the programme outcomes • Determining measurable levels of benefits for beneficiaries and communities that the programme produces. • Data Management, Verification and Analysis • Produce reports on the implementation of data management, verification and analysis processes

  36. NationalHuman Settlements Development GrantRevised Business Plan2013/14Outcome 8Slum Upgrading, Rental, FLISP, LandNational PrioritiesRectification, Rural, Priority Projects, Emergency Housing, PHP, HSDG in Metropolitan MunicipalitiesSummary of HSDG

  37. Outcome 8

  38. Summary of Nat’l Priorities

  39. Summary of HSDG Allocations – 2013/14

  40. Priority Projects

  41. Other Programme Allocations

  42. Other Programme Allocations

  43. THANK YOU

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