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Overview

DEPARTMENT OF PUBLIC WORKS Portfolio Committee Presentation 7 th August 2012 Parliament of the Republic of South Africa. Overview. Purpose Overall Financial Performance Overall Financial Performance per Programme Budget Analysis per Branch Earmarked Funds

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Overview

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  1. DEPARTMENT OF PUBLIC WORKSPortfolio Committee Presentation7th August 2012Parliament of the Republic of South Africa

  2. Overview • Purpose • Overall Financial Performance • Overall Financial Performance per Programme • Budget Analysis per Branch • Earmarked Funds • Performance Information (Annexure) • Progress on Turnaround Portfolio Committee Presentation 07 August 2012

  3. 1. Purpose • Purpose of the Presentation by the Department of Public Works • To update the Portfolio Committee on Public Works on the financial and Information performance of the Department of Public Works for the 1st Quarter of the financial year 2012/13. • Objective of the Portfolio Committee on Public Works • To monitor financial spending in the department versus the roll-out of the departmental programmes Portfolio Committee Presentation 07 August 2012

  4. 2. Overall Financial Performance Portfolio Committee Presentation 07 August 2012

  5. Overall Financial Performance per Programme • Linear • Benchmark 25% • Overall Allocation for the year = R7.99bn • Expenditure as at Q1 = R2.17bn • % spent Q1 2012 = 27% compared to Q1 2011 = 17% Portfolio Committee Presentation 07 August 2012

  6. Overall Expenditure per Economic Classification Linear Benchmark 25% Portfolio Committee Presentation 07 August 2012

  7. Compensation of employees • Compensation of employees’ expenditure for the month ended 30 June 2012 is R327 million • This expenditure is equivalent to 26 % for Q1 2012 compared to 23% of Q1 2011 • For Q1 2012: against the straight line guideline set at 25% • Overall Compensation of Employees exceed the guidelines by 1% - (26%) • Programme 2 (IAM) also exceeded by 1% - (26%) • Programme 3 (EPWP) is at 25% • Programme 4 (Construction and Property Policy) is below by 12% - (13%) Portfolio Committee Presentation 07 August 2012

  8. Transfers and Subsidies • Transfers and subsidies expenditure for the end of 30 June 2012 is R 1.3 billion • This expenditure is equivalent to 34% of the allocation of R4 billion for the year • Expenditure on transfers and subsidies include the following payments: • R792 million payment to provinces for Devolution of Property Rates and Taxes Fund. • R323 million for Augmentation of Property Management Trading Entity • R140 million for Non-State Sector • R62 million for EPWP Integrated Grant to Provinces • R54 million for Social Sector. Portfolio Committee Presentation 07 August 2012

  9. Capital Payments • Infrastructure expenditure for the month ended June 2012 is R 146 million and expenditure is equivalent to 10% of the allocation of R 1.484 billion. • Expenditure is far below (at 10%) the guideline and possible under spending is projected. • Expenditure for machinery and equipment including intangible assets is R5.3 million and expenditure is equivalent to 6% of the total allocation of R97 million for Q1 2012 Portfolio Committee Presentation 07 August 2012

  10. 3. Overall Financial Performance per Programme Portfolio Committee Presentation 07 August 2012

  11. Expenditure per economic classificationProgramme 1 – Administration Purpose: Provide strategic leadership and support services, including the accommodation and overall management of the department. Portfolio Committee Presentation 07 August 2012

  12. Performance Information of Programme 1Administration Strategic Objective: Ensure effective corporate governance and sound resources management

  13. Expenditure per economic classificationProgramme 2 - Immovable Asset Investment Management Purpose: Provide and manage government’s immovable property portfolio in support of government’s social, economic, functional and political objectives. Portfolio Committee Presentation 01 August 2012

  14. Performance Information of Programme 2Immovable Asset Investment Management

  15. Expenditure per economic classificationProgramme 3 – Expanded Public Works Programme Purpose: To ensure creation of work opportunities for the poor and unskilled people in South Africa by co-ordinating the implementation of the programme and providing overall strategic leadership across the three spheres of government. Portfolio Committee Presentation 01 August 2012

  16. Performance Information of Programme 3Expanded Public Works Programme

  17. Expenditure per economic classificationProgramme 4 – Construction and Property Policy Regulation Purpose: Promote the growth and transformation of the construction and property industries. Promote uniformity and best practice in construction and immovable asset management in the public sector. Note: High % spent for goods and services Portfolio Committee Presentation 07 August 2012

  18. Performance Information of Programme 4Construction and Property Policy Regulation

  19. Notes to Programme 4 • Goods and services - % spent for Q1 – 2012 is 49% compared to 42% of Q1 – 2011 • High expenditure under goods and services in programme four relate to state function for the funerals state events by the President. • Expenditure was unforeseen and unavoidable and therefore additional funding to offset over spending will be requested during adjustment estimates. Portfolio Committee Presentation 01 August 2012

  20. Expenditure per economic classificationProgramme 5 – Auxiliary and Associated Services Purpose: To provide for various services, including compensation for losses on the government assisted housing scheme and assistance to organisations for the preservation of national memorials. Meet the protocol responsibilities for state functions. Portfolio Committee Presentation 01 August 2012

  21. Performance Information of Programme 5Projects and Professional Services

  22. 4. Budget Analysis per Branch Portfolio Committee Presentation 07 August 2012

  23. Budget per Branch Analysis For Q1 - 30 June 2012

  24. Budget per Branch Analysis For Q1 - 30 June 2012

  25. Economic Classification Per Region Analysis For Q1 - 30 June 2012

  26. Notes on Economic Classifications Q1 2012 – The Regional Offices • Regional Offices • Allocation for Compensation of Employees is R908 million • 47.5% (or R432 009 million) of the of the total budget allocation towards compensation is shared by three Regional Offices (Cape Town – 18.8%, Pretoria – 15.3% and Durban -13.4%) • Overall Compensation of Employees expenditure for Q1 is 25% (in line with the straight line guideline set at 25%) • Goods and Services • Budget Allocation for the year is R156 700 • 24% of the allocation spent in Q1 2012, Cape Town being the highest (33%) Portfolio Committee Presentation 01 August 2012

  27. Economic Classification Per Region Analysis For Q1 - 30 June 2012

  28. 5. Earmarked Funds Portfolio Committee Presentation 07 August 2012

  29. Earmarked Funds Expenditure Analysis For Q1 – 30 June 2012

  30. Earmarked Funds Expenditure Analysis For Q1 – 30 June 2012 Portfolio Committee Presentation 07 August 2012

  31. 6. Performance InformationAnnexure A Portfolio Committee Presentation 07 August 2012

  32. 7. Progress on Turnaround TurnarounD Sonke◘ Kaofela ◘ Together Slogan - Sonke◘ Kaofela ◘ Together Portfolio Committee Presentation 07 August 2012

  33. Turnaround Progress • Appointment of Support team members • Little success since February 2012 (on 6 Core team members and 14 functional specialist) • 2) Establishment of a Turnaround Unit • Department for Public Service and Administration (DPSA) was approached in June 2012 for advice • 3) Meetings held • Workshop with Minister and DM – 3/4 July 2012 • Workshop coordinated by DG , facilitated by TAU and report produced by Turnaround Secretariat • Extended Manco 20 July 2012 • - Invited Manco to input into the turnaround and suggest ways to do things • Differently, Quicker and Better • Extended Manco – Strategic Plan of DPW - 25/26 July 2012

  34. Turnaround Progress • Planned Meetings – further engagement and ownership • Extended Manco – Annual Performance Plan - 20/21 August 2012 • Stake-holder Management meetings • Branch and Units sessions • Some Initiatives • Appointed Ilima Trust Property Management – to do scoping • Tender to be issued (possibly 24th August) for the review of current leases from the 1st of April 2012. The appointed service provider to start on 1st of November 2012. Portfolio Committee Presentation 07 August 2012

  35. Turnaround Progress Projects Identified (Progress in Some) Project 1 Immovable Asset Register Project 2 Leases Project 3: Clean Audit Project 4 Regional Support Project 5 Anti-Corruption Campaign Project 6 Re-opening of workshops Project 7 SCM Review Project 8 Governance and Performance Management Review – TA Projects 9 Compliance Review and Enforcement Project 10 Bills for Parliament Project 11 ICR Project 12 HR - Building of Skills in DPW Project 13 LR - Employee Issues/Grievances Project 14 Key Accounts Management (KAM) Project 15 Prestige Project 16 Head Quarters Portfolio Committee Presentation 07 August 2012

  36. THANK YOU National Department of Public Works (NDPW) Head Office: Public WorksCGO BuildingCnr Bosman and MadibaPretoria CentralPrivate BagX65Pretoria0001 Website: http://www.publicworks.gov.za Portfolio Committee Presentation 07 August 2012

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