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Department of Human Settlements Annual Report 2017/2018

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Department of Human Settlements Annual Report 2017/2018 ANNUAL REPORT 2017-2018 VOTE 38 houses ● security ● comfort ANNUAL REPORT 2017-2018 VOTE 38 1 N MFEKETO (MP), MINISTER DEPARTMENT OF HUMAN SETTLEMENTS I have the honour of submitting the Annual Report of the Department of Human Settlements for the period 1 April 2017 to 31 March 2018 for tabling in the National Assembly on 30 September 2018. M S TSHANGANA DIRECTOR-GENERAL DATE: 31 July 2018 CONTENTS PAGE PART A: GENERAL INFORMATION 4 1. Department General Information 5 2. List of Abbreviations 6 3. Foreword by the Minister 8 4. Deputy Minister’s Statement 9 5. Report of the Accounting Officer 10 6. Statement of responsibility and confirmation of accuracy of the Annual Report 15 7. Strategic Overview 16 8. Legislative and other mandates 16 9. Organisational Structure 19 10. Entities reporting to the Minister 20 PART B: PERFORMANCE INFORMATION 22 1. Report of the Auditor-General on Predetermined Objectives 22 2. Overview of Departmental Performance 23 3. Strategic outcome-oriented goals 25 4. Performance information by programme 25 5. Transfer Payments 62 6. Conditional Grants 66 2 human settlements houses ● security ● comfort ANNUAL REPORT 2017-2018 VOTE 38 3 PART C: GOVERNANCE 70 1. Introduction 71 2. Risk Management 71 3. Fraud and Corruption 71 4. Minimising conflict of interest 72 5. Code of conduct 72 6. Health safety and environmental issues 72 7. Parliamentary committees 73 8. Prior modifications to audit reports 89 9. Internal control unit 89 10. Internal audit and audit committees 90 11. Audit Committee Report 91 PART D: HUMAN RESOURCE MANAGEMENT 92 Overview of Human Resources 93 PART E: FINANCIAL INFORMATION 124 Report of the Auditor-General to Parliament on vote no. 38: National Department of Human Settlements 124 Annexures: Auditor-General’s responsibility for the audit 129 Audited Annual Financial Statements 131 PART A: GENERAL INFORMATION 4 human settlements houses ● security ● comfort ANNUAL REPORT 2017-2018 VOTE 38 5 1. Department General Information PHYSICAL ADDRESS: POSTAL ADDRESS: TELEPHONE NUMBER: EMAIL ADDRESS: Department of Human Settlements Private Bag X644 +27 12 421 1311 info@dhsgovza Govan Mbeki House Pretoria FAX NUMBER: WEBSITE ADDRESS: 240 Justice Mahomed Street 0001 +27 12 341 8512 wwwdhsgovza Sunnyside Pretoria 2. List of Abbreviations AG Auditor General DEA Department of Environmental Affairs EHWP Employee Health and Wellness HRP Human Resource Plan Programme APP Annual Performance Plan DHS Department of Human Settlements EMT Executive Management Team HR Human Resource AFUS African Forum on Urban DG Director General ENE Estimate of National Expenditure HSDG Human Settlements Development Grant AFS Annual Financial Statements DDG Deputy Director General EPMDS Employee Performance Management HSS Housing Subsidy System Development Systems BASA Banking Association of South Africa DFI Development Finance Institutions EPWP Expanded Public Works Programme IFS Interim Financial Statements BPCMEP Batho Pele Change Management DHS Department of Human Settlements FLISP Finance Linked Individual Subsidy ICT Information and Communication Programme Programme Technology BNG Breaking New Ground DIRCO Department of International Relations FOSAD Forum for South African IBSA India, Brazil and South Africa and Cooperation Director-Generals BP Business Processes DCOG Department of Cooperative FNB First National Bank IT Information Technology Governance CA(SA) Chartered Accountant (South Africa) DORA Division of Revenue Act GEHS Government Employees Housing IDP Integrated Development Plan Scheme CRU Community Residential Units DOT Department of Transport GDP Growth Domestic Product IGR Inter-Governmental Relations CSIR Council for Scientific and Industrial DPSA Department of Public Service and GMA Govan Mbeki Awards IGTT Inter-Governmental Task Team on Research Administration Pomfret CSOS Community Schemes Ombud DPW Department of Public Works GHCC Gauteng Housing Crisis Committee IRDP Integrated Residential Development Services Programme COSO Committee of Sponsoring DVD Digital Video Disc GHS Government Housing Scheme IMC Inter-Ministerial Committee Organisations CoE Compensation of Employees EE Employment Equity GIZ German Development Agency IUDF Integrated Urban Development Framework CPI Consumer Price Index EAAB Estate Agency Affairs Board GP Gauteng Province JCC Joined Coordinating Committee COGTA Cooperative Governance and EAH Employer Assisted Housing HIV Human Immunodeficiency Virus JICA Japan International Cooperation Traditional Affairs Agency CTA Certificate in the Theory of ECD Early Childhood Development HCT Hematocrit JBMC Joint Branch Management Accountancy Centres Committee DM Deputy Minister EC Eastern Cape HDA Housing Development Agency KZN KwaZulu-Natal DANIDA Danish International Development EHW Employee Health and Wellness HLAMDA Home Loans and Mortgage KRA Key Result Area Agency Disclosure Act 6 human settlements houses ● security ● comfort ANNUAL REPORT 2017-2018 VOTE 38 7 M&E Monitoring and Evaluation NTT National Transport Forum RMC Risk management Committee SHP Social Housing Policy MEIA Monitoring, Evaluation and Impact NUA New Urban Agenda RHLF Rural Housing Loan Fund SITA State Information Technology Agency Assessment MinMec Minister and Members of Executive NW North West RZ Restructuring zones SIP Strategic Integrated Projects Committee MSP Master Spatial Plan OECD Organisation Economic Cooperation RDP Reconstruction and Development SIU Special Investigation Unit Development Programme MTEF Medium Term Expenditure OHS Occupational Health and Safety SA South Africa SLA Service Level Agreements Framework MTSF Medium Term Strategic Framework OPSCAP Operation Capital Subsidy SALGA South African Local Government SMS Senior Managent Services Programme Association MPAT Management Performance PAIA Promotion of Access to Information SAPS South African Police Services SOP Standard Operating Procedures Assessment Tool Act MHSCG Municipal Human Settlements PIE Prevention of Illegal Eviction SACTSP South Africa-Cuba Technical Support SQL Structured Query Language Capacity Grant Programme NARS National Archives and Records PFMA Public Finance Management Act SANSA South African National Space Agency SPLUMA Spatial Planning and Land Use Services Management Act, 2013 NCOP National Council of Provinces PLM Project Level Monitoring SARS South African Revenue Services SPCHD Social Protection Community & Human Development NDP National Development Plan PHP People’s Housing Process SANMVA South African National Military STSM Sectional Title Scheme Management Veterans Association NDHS National Department of Human PMDS Performance Management SCM Supply Chain Management TID Technical Indicator Description Settlements Development System ToR Terms of reference NDMC National Disaster Management PSETA Public Service Sector Education SCOPA Standing Committee on Public Centre Accounts UAMP User Asset Management Plan NEDLAC National Economic Development and PPMU Programme and Project Planning SDIP Service Delivery Improvement Plan Labour Council Management Unit UISP Upgrading of Informal Settlements NHBRC National Home Builders Registration P&PP Programme and Project Planning SDG Strategic Development Goal Programme Council UN United Nations NHFC National Housing Finance PRT Professional Resource Teams SDG Sustainable Development Goals Corporation URP Urban Renewal Programme NHNR National Housing Needs Register PM & E Performance Monitoring and SDI Slum Dwellers International Evaluation USDG Urban Settlement Development NURCHA National Urban Reconstruction and PSCBC Public Service Co-ordinating SHRA Social Housing Regulatory Authority Grant Housing Agency Bargaining Council VLAN Virtual Local Area Network NUSP National Upgrade Support RFQ Requests for Quotations SHI Social Housing Institutions WSP Workplace Skills Plan Programme 3. Foreword by the Minister uman settlements is a basic human right Through the Upgrading of Informal Settlements government, mining companies, organised labour, Hthat should be enjoyed by all South Africans Programme, 67 548 households were upgraded the private sector and local communities. The and as custodians of this portfolio we have done in partnership with provinces and municipalities, primary objective was amongst others to increase everything within our powers to deliver on this during the review period. Within this programme affordable home ownership, intensify the delivery of goal while grappling with the challenge of sluggish we have made efforts to provide opportunities to gap, rental, BNG, social housing opportunities and economic growth. youth and women. Through our Youth Brigade serviced sites for employer assisted housing. Programme we trained 2 270 young people with To date, our efforts yielded 4 731 serviced sites We have progressively continued to provide access the following much needed skills: bricklaying, and 4 303 units from a combined budget of to adequate housing for our people and we have plumbing, plastering, roofing and carpentry, R1.6 billion. N Mfeketo, MP managed to deliver 370 999 housing units to the construction management, electrical wiring and Minister for deserving members of society, during the current tubing. In addition, we have placed 391 youth We remain committed to serve South Africans in Human Settlements MTSF period. Those who have been on waiting brigades trainees in to learnership programmes to ensuring that they have decent human settlements lists were prioritised and targeted to ensure that curb unemployment and supply the economy with and their
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