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DEPARTMENTAL PERFORMANCE REPORT: APRIL- JUNE 2013 PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS PowerPoint Presentation
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DEPARTMENTAL PERFORMANCE REPORT: APRIL- JUNE 2013 PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS

DEPARTMENTAL PERFORMANCE REPORT: APRIL- JUNE 2013 PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS

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DEPARTMENTAL PERFORMANCE REPORT: APRIL- JUNE 2013 PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS

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  1. DEPARTMENTAL PERFORMANCE REPORT: APRIL- JUNE 2013 PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS DIRECTOR-GENERAL: T ZULU

  2. CONTENT • Departmental First Quarter Non-Financial Performance (April to June 2013) • Departmental Expenditure vs. Performance (Targets / Outcomes) • Communication and Outreach key • Delivery Agreement (Outcome 8) • Job Creation • Accreditation of Municipalities • Financial Matters • Challenges Experienced • Performance Improvement Plans / Remedial measures

  3. OVERVIEW OF DEPARTMENTAL PERFORMANCE (APRIL TO JUNE 2013) • The overall achievement by the National Department of Human Settlements during the first quarter of 2013/2014 financial year is sixty five percent (65%). • Out of one hundred and eighteen (118) targets which were planned for the period under review, seventy seven (77) targets were achieved whilst forty one (41) targets were not achieved.

  4. OVERALL DEPARTMENTAL NON-FINANCIAL PERFORMANCE (APRIL- JUNE 2013)

  5. This is mainly due to the following challenges experienced by the Department: • Failure to deliver the required services as stated in the Service Level Agreement by SITA • Non-availability of suitable land for human settlements developments in Provinces • Insufficient active monitoring presence in Provinces and Metros to monitor and verify performance of HSDG and USDG expenditure and delivery

  6. The department has taken the following steps in the filling of vacant posts: • The appointment at SMS level has been prioritized. This is done in order to ensure that non SMS appointments are done by their respective managers. • The status report on the vacancy rate is being presented at EMT level every week. This is where progress and challenges are being deliberated on. • All submissions on recruitment are being prioritized. This is done in order to ensure that the department does not loose potential candidates. • The department has signed an agreement with South African Qualifications Authority (SAQA) where the turnaround time on the verification of qualifications has been reduced to 2 days. • The officials in Human Resources unit are working extra hours in order to ensure that the recruitment process is successful. As a result 74% (155 out of 210) of vacant posts are already in the process of being filled.

  7. The following are the Departmental Remedial measures to be put in place to improve performance: • Compulsory training on Bid specifications, evaluations and adjudication from the level of Assistant Director and upwards • Address challenges relating to inter -governmental collaborations as they impact on policy development processes and service delivery • Improve compliance by Provincial Departments and usefulness of HSS data • Sufficient monitoring presence in Provinces and Metros to reduce turnaround time in collection of information on performance • Approved guidelines to standardise and guide the implementation of PHP across the sector • Full scale implementation of the Departmental Auditor General Action Plan

  8. Departmental Expenditure vs. Performance (Targets / Outcomes)

  9. COMMUNICATION AND OUTREACH • Sanitation Week held in Ward 5 at Makhaza in Khayelitsha – 25 April 2013 • Launched Walmer Link FLISP project – 09 May 2013 • Community engagement on the Budget Vote in Du-Noon – 22 May 2013

  10. OUTCOME 8UPGRADING OF INFORMAL SETTLEMENTS • Number of households provided with upgraded services as on 30 June 2013: 188 056 households • Represents 47.0% of 2014 target • Including USDG: Increased to 255 628 households • Represents 63.9% of 2014 target • Over same period Provinces delivered 192 253 formal housing units to households in informal settlements

  11. OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS

  12. OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS: USDG (30 JUNE 2013)

  13. OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)

  14. OUTCOME 8 INFORMAL SETTLEMENTS: PROVISION OF TOP STRUCTURES Although the main objective of Outcome is to provide residents in and from informal settlements with access to services, a total number of 192 253 formal top structures were also delivered to residents in and from informal settlements that improved the quality of their lives. All of them previously lived in a shack with access to a low level of some basic services on sit or through shared facilities.

  15. OUTCOME 8NATIONAL UPGRADING SUPPORT PROGRAMME • NUSP is providing technical assistance or is in the process of appointing service providers to assist with upgrading strategies and plans or is in the process to determine assistance needs in the following cities/ municipalities: • EC: Buffalo City, Kouga, Elundini, Mhlonto and Mquma • FS: Categorisation and mapping under way in six NUSP Municipalities; • GT: Mogale City, City of Johannesburg, Ekurhuleni, City of Tshwane and Emfuleni; • KZN: Ladysmith, Newcastle, Mzundusi, Umhlathuze, Ethekweni and KwaDukuza; • LP: Developing of specific upgrading plans underway and additional 10 Municipalities identified for the same exercise;

  16. OUTCOME 8 NATIONAL UPGRADING SUPPORT PROGRAMME • NUSP: • MP: Govan Mbeki, Thembisile, Emalahleni, Steve Tshwete: Lekoa. • NC: //Kara Hais, Gamagara, Ga-Segonyana, Phokwane, Sol Plaatje and Tsantsabane; • NW: Rustenburg, Madibeng, Tlokwe, Maquassi Hills and Kgetlengrivier. A further 8 settlements have been identified for assistance; and • WC: Drakenstein, COCT, Mossel Bay and George.

  17. OUTCOME 8 INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION

  18. OUTCOME 8 WELL-LOCATED AFFORDABLE RENTAL ACCOMMODATION • Restructuring Zones: 75 approved and 55 still under discussion • SHRA: • Completed Projects: 2143 units • Running Projects: 11 005 units • Approved pipeline projects in various stages of planning: 21 445 units • EC: 4734 LP: 3887 • FS: 3250 MP: 710 • GT: 1464 NC: 1573 • KZN: 1733 NW: 1764 WC: 2330

  19. OUTCOME 8ACCREDITATION OF MUNICIPALITIES Performance to date: • Level 1: 8 District Municipality/Municipalities; • Level 2: 8 Metros, 11 District Municipalities/Local Municipalities • Implementation Protocols concluded: 24 Municipalities • Assignment (Level 3 accreditation) of Metros: FFC response identified a number of operational issues that needed serious attention. • The target of signing the Executive Assignment Agreement was therefore changed to15 August 2013. The target date for the Premier’s proclamation is now 15 September 2013.

  20. OUTCOME 8 OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN SETTLEMENTS DEVELOPMENT • Actual delivery: • 72 210 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 is well located for extension of existing settlements, land tenure upgrading, integrated development or GAP market • PHSD’s (private land acquired): 10 218,9 ha • An additional 419,3 ha has been released by the Department of Rural Development and Land Reform • Two properties in Elias Motsoaledi Municipality measuring 523,3 ha submitted for approval to be released for upgrading of informal settlements

  21. OUTCOME 8OUTPUT 4: 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; • ABSA and Standard Bank signed a MOU with the NHFC. Three banks are now on board and actively supporting the implementation of the programme. • An amendment to the revised policy has been proposed to increase the value cap imposed on the policy in April 2012 in accordance to the escalation of the BER Index. • It is also proposed that the Section 1A and B of the Housing Act, Act 107 of 1997, be amended to replace the pre-emptive right with a more workable solution

  22. OUTCOME 8OUTPUT 4: IMPROVED PROPERTY MARKET Cont….. • Banks are using the pre-emptive right condition to not approve loan applications linked to FLISP subsidies; • NHFC has requested that the administration of FLISP be extended to the open market. An individual will therefore be allowed to approach a bank, obtain conditional loan approval and then approach the NHFC to apply for subsidy; • The above proposals are still under consideration • Total number of units delivered: 330 (Provincial) – NHFC: 110 households assisted • Long term fixed interest rate instrument • Planned for launching in 2014

  23. OUTCOME 8PERFORMANCE : DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED

  24. OUTCOME 8 • Number of households provided with upgraded services: 230 111 households (including USDG performance) - represents 57,5% of 2014 target; • Number of affordable rental accommodation delivered: 43 774 units (including USDG funded units) – represents 54,7% of 2014 target; • Well located state land released to Municipalities for human settlements development: 7 477,5 ha; • Total number of loans granted to the affordable property market: 226 495

  25. JOB CREATION • During the quarter, 6,664 serviced sited and 19,648 top structures were delivered. • This delivery translate to 9,437 job opportunities if the definition of a person employed for a period of one year is considered . • If a temporary employment is considered for only that three months the delivery for that quarter is estimated to have created 20,010 jobs during the construction phase.

  26. ACCREDITATION OF MUNICIPALITIES Cont…. • FFC review has been received and is favourable & paves way for the formal assignment process can proceed and has been work shopped with Provinces and Metros. • Consultation with all Provinces and Metros, bar the Eastern Cape and Nelson Mandela Bay Metro, have been undertaken to establish the required actions and time-frames towards the conclusion of the Signing of the executive agreement.

  27. ACCREDITATION OF MUNICIPALITIES Cont…… • Framework for the transfer of assets, liabilities, staff, and projects has been established to assist the Provinces and Metros post the signing of the assignment agreement • Assignment Task Teams constituted of provincial local government departments, Provincial Treasuries, Provincial SALGAs, Human Settlements departments and Metros are being established to oversee the assignment process in Provinces.

  28. FINANCIAL MATTERS DEPARTMENTAL EXPENDITURE AND CONDITIONAL GRANTS: FIRST QUARTER 2013

  29. 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

  30. 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

  31. 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.

  32. 2013 MTEF ALLOCATION Grants and transfers to entities constitute 97% of the total allocation.

  33. 2013 MTEF ALLOCATION: TRANSFER PAYMENTS

  34. EXPENDITURE PER PROGRAMME: 30 JUNE 2013

  35. OPERATIONAL EXPENDITURE: 30 JUNE 2013 Note: Expenditure excludes all Transfer payments.

  36. TRANSFER PAYMENTS 30 JUNE 2013

  37. STATUS OF NON TRANSFERS Tranche/transfer payments for the Human Settlements Development Grant in respect of April to June were not made to Limpopo ( R225) and Mpumalanga (Total value is R305 million ). • Limpopo transfer was withheld as per National Treasury instruction. • Mpumalanga’s human settlements development business plan was considered but did not address Outcome 8 targets. It was referred back to the province for correction and resubmission. The revised business plan was received back and approved and the transfers have taken place in the beginning of July.

  38. REASONS FOR UNDERSPENDING Cont…. • In general what was and still of concern is the slow filling of vacancies due to delays experienced in qualification verification by the South African Qualifications Authority (SAQA) for posts already interviewed and the continued lack of office-space. • Special Investigation Unit (SIU) challenges of the SIU not providing the Department with invoices. • The leasing of additional office accommodation was not effective as issues were still not resolved with the Department of Public Works at that time • Slow implementation of the National Upgrading Support Programme.

  39. REASONS FOR UNDERSPENDING Cont….. • The inability of SITA to provide resources at an adequate level to maintain the Housing Subsidy System (HSS) as stipulated in the SLA.

  40. Dept Expenditure per Programme: 30 September 2013

  41. Transfer payments 30 September 2013

  42. HUMAN SETTLEMENTS DEVELOPMENT GRANT 2013/14 ALLOCATION

  43. HUMAN SETTLEMENTS DEVELOPMENT GRANT

  44. HSDG Allocation cont: 80/20 Split

  45. HSDG ALLOCATION cont : Outcome 8

  46. PRIORITY PROJECTS ALLOCATIONS

  47. HUMAN SETTLEMENTS DEVELOPMENT GRANT EXP: JUNE 2013

  48. DELIVERY AS AT 30 JUNE 2013

  49. 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;

  50. 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.