Eastern Cape Department of Human Settlements Steve Tshwete Building • 31-33 Phillip Frame Road Waverly Park • Chiselhurst • 5247 • East London Vote: 11 /20 ANNUAL REPORT 20 Contact: 043 711 9514 HUMAN SETTLEMENTS Customer Care Line: 086 000 0039 www.ecdhs.gov.za 314 13
ANNUAL REPORT 2013 /20 14
Vote: 11
ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
HUMAN SETTLEMENTS
DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE VOTE NO. 11
ANNUAL REPORT 2013 /20 14 FINANCIAL YEAR
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
CONTENTS
PART A: GENERAL INFORMATION ...... 5 1. DEPARTMENT GENERAL INFORMATION ...... 6 2. LIST OF ABBREVIATIONS/ACRONYMS ...... 7 3. FOREWORD BY THE MINISTER/MEC ...... 10 4. REPORT OF THE ACCOUNTING OFFICER ...... 12 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ...... 19 6. STRATEGIC OVERVIEW ...... 20
6.1. Vision ...... 20 6.2. Mission ...... 20 6.3. Values ...... 20 7. LEGISLATIVE AND OTHER MANDATES ...... 20 8. ORGANISATIONAL STRUCTURE ...... 25 9. ENTITIES REPORTING TO THE MINISTER/MEC...... 26
PART B: PERFORMANCE INFORMATION ...... 27 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES...... 28 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE ...... 28 2.1 Service Delivery Environment ...... 28 2.2 Service Delivery Improvement Plan ...... 29 2.3 Organisational environment...... 31 2.4 Key policy developments and legislative changes ...... 31 3. STRATEGIC OUTCOME ORIENTED GOALS ...... 32 4. PERFORMANCE INFORMATION BY PROGRAMME ...... 36 4.1 Programme 1: ...... 36 4.2 Programme 2: ...... 62 4.3 Programme 3: ...... 68 4.4 Programme 4: ...... 94 5. CONDITIONAL GRANTS ...... 102 5.1 Conditional grants and earmarked funds received ...... 102 6. DONOR FUNDS ...... 114 6.1 Donor Funds Received ...... 114 7. CAPITAL INVESTMENT ...... 117 7.1 Capital investment, maintenance and asset management plan ...... 117
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
PART C: GOVERNANCE ...... 119 1. INTRODUCTION...... 120 2. RISK MANAGEMENT ...... 120 3. FRAUD AND CORRUPTION ...... 120 4. MINIMISING CONFLICT OF INTEREST ...... 121 5. CODE OF CONDUCT ...... 121 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES...... 122 7. PORTFOLIO COMMITTEES ...... 122 8. SCOPA RESOLUTIONS ...... 122 9. PRIOR MODIFICATIONS TO AUDIT REPORTS ...... 122 10. INTERNAL CONTROL UNIT ...... 123 11. INTERNAL AUDIT AND AUDIT COMMITTEES ...... 123 12. AUDIT COMMITTEE REPORT ...... 125
PART D: HUMAN RESOURCE MANAGEMENT ...... 127 1. INTRODUCTION...... 128 2. OVERVIEW OF HUMAN RESOURCES ...... 128 3. HUMAN RESOURCES OVERSIGHT STATISTICS ...... 130
PART E: FINANCIAL INFORMATION ...... 167 1. REPORT OF THE AUDITOR GENERAL ...... 168 2. ANNUAL FINANCIAL STATEMENTS ...... 173
3 PART A GENERAL INFORMATION
4 PART A GENERAL INFORMATION
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
DEPARTMENT GENERAL INFORMATION
PHYSICAL ADDRESS: Steve Tshwete House 31-33 Phillip Frame Road Waverly Park Chiselhurst
POSTAL ADDRESS: Private Bag X13008 Cambridge Chiselhurst East London 5206
TELEPHONE NUMBER/S: 027 43 711 9514
FAX NUMBER: 027 86 645 3891
EMAIL ADDRESS: [email protected]
WEBSITE ADDRESS: www.ecdhs.gov.za
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LIST OF ABBREVIATIONS/ACRONYMS
AGSA Auditor General of South Africa HR Plan Human Resource Plan AFS Annual Financial Statements HRD Human Resource Development APP Annual Performance Plan HRM Human Resources Management BAS Basic Accounting System HSS Housing Subsidy System BBBEE Broad Based Black Economic HSRC Human Science Research Council Empowerment ICT Information and Communication BCM Buffalo City Municipality Technology BEE Black Economic Empowerment IDP Integrated Development Plan BNG Breaking New Ground IGR Intergovernmental Relations CFO Chief Financial Officer IOD Injury on Duty CID Corporate Identity IT Information Technology CMS Case Management System ISS Institute for Social Studies COIDA Compensation for Occupational JE Job Evaluation Injuries and Disease Act KM Knowledge Management CRUP Community Residential Units LAN Local Area Network Programme LOGIS Logistical Information System CRU Community Residential Units LED Local Economic Development DB Database M & E Monitoring and Evaluation DBSA Development Bank of Southern Africa MEC Member of the Executive Council DHLG&TA Department of Housing, Local MFMA Municipal Finance Management Act Government and Traditional Affairs MHSP Municipal Housing Sector Plans DM District Municipality MIG Municipal Infrastructure Grant DORA Division of Revenue Act MINMEC Ministers and Member of Executive DPSA Department of Public Service and Council Administration MIS Management Information System DRPW Department of Road and Public Works MISP Master Information Systems Plan ECATU Eastern Cape Appropriate Technology MPCC Multi-Purpose Community Centre Unit MTEF Medium Term Expenditure Framework EDMS Electronic Document Management MUNIMEC Municipalities and Members of System Executive Council EE Employment Equity MYHDP Multi Year Housing Development Plan EEDBS Enhanced Extended Discount Benefit NHBRC National Home Builders Registration Scheme Council EEP Employment Equity Plan NHFC National Housing Finance Corporation EHW Employment Health and Wellness NIMR National Information Requirements EIA Environmental Impact Assessment NMBM Nelson Mandela Bay Municipality EPHP Enhanced Peoples Housing Process NMMM Nelson Mandela Metro Municipality EPWP Expanded Public Works Programme NYDA National Youth Development Agency EXCO Executive Council NSDF National Spatial Development FET Further Education and Training Framework FLISP Finance Linked Individual Subsidy NSDP National Spatial Development Programme Perspective GIS Geographical Information System NTR National Treasury Regulations HC Housing Chapters of IDPs NUSP National Upgrading Support HCE Housing Consumer Education Programme HDA Housing Development Agency HIV Human Immune Virus HNR Housing Needs Register NURCHA National Urban Reconstruction and HOD Head of Department Housing Agency
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
OAG Office of the Auditor General PSC Project Steering Committee OP Operational Plan PSDP Provincial Spatial Development Plan OPS/CAP Operational Capital Budget PVAS Payment Voucher Administration OTP Office of the Premier System PDMS Performance Development QPMS Quarterly Performance Management Management System System PACom Project Assessment Committee QPR Quarterly Performance Report Persal Personnel and Salary System RHLF Rural Housing Loan Fund PFMA Public Finance Management Act RMU Revenue Management Unit PGDP Provincial Growth and Development RULIV Eastern Cape Rural Livelihoods Programme Plan SDIP Service Delivery Improvement Plan PGDS Provincial Growth and Development SCM Supply Chain Management Strategy SCMU Supply Chain Management Unit PHDP People Housing Development SHRA Social Housing Regulatory Authority Programme SITA State Information Technology Agency PHP People’s Housing Process SLA Service Level Agreement PILIR Procedure on Incapacity Leave and Ill SMME Small Medium and Micro Enterprises Health Retirement SOS Soweto on Sea PMDS Performance Management and TOR Terms of Reference Development System TR Treasury Regulations PMO Project Management Office UNDP United Nations Development Programme PMS Performance Management System WAN Wide Area Network PMU Project Management Unit PSETA Public Service Sector Education and PMO Project Management Office Training Authority PR Public Relations WSP Workplace Skills Plan
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1. FOREWORD BY THE MEC
The Department of Human Settlements tables the 2013 /14 Annual Report at a time when the country’s National and Provincial governments enter into the 5th term of a Democratic administration under the capable leadership of the African National Congress. The South African government has over the past term embarked on a concerted effort of repositioning itself in the global environment to take advantage of better economic and related opportunities. In the 2013/14 financial year, the department has ensured that 100% on the Conditional Grant and Overall expenditure budget on the vote was spent, respectively.
This plan places human dignity on top of the department’s service delivery agenda through the acceleration of the human settlements implementation plan, creation of sustainable job opportunities, expanding housing delivery to rural communities, supporting and encouraging enterprise and community development. We believe that the implementation of the new departmental Service Delivery Model has indeed brought about stability and renewed organisational culture in realising quality delivery to the People of this province.
The Department will continue giving the necessary advice and guidance to the Nelson Mandela Metropolitan Municipality and Buffalo City Metropolitan Municipality with regards to the spending of the Urban Settlement Development Grant (USDG) from the National Department of Human Settlements. The USDG seeks to support the development of sustainable human settlements and improved quality of life for households through the acceleration of provision of serviced land with secure tenure for low-income households in large urban areas by supplementing municipal resources.
Our Departmental priorities in realising the Service Delivery Targets as per the National and Provincial timeframes and available resources (2014-17) are as follows:
Upgrading of Informal Settlements Affordable rental housing stock Rural Development Basic Services Programme Acquisition of suitable land for Human Settlements Development Supply of Affordable Housing Finance
In addition the Department will focus on:
Transferring of Title deeds to households for home ownership Accelerate implementation of the Integrated residential development programme Fighting fraud and corruption in the Human Settlements delivery chain Creation of Sustainable job opportunities Supporting and encouraging enterprise and community development Planning and Servicing of sites, and furthermore use innovative methods and alternative building technologies in housing construction
In order to realize the Department’s and Government’s broader strategic policy outcomes we need to ensure discipline is maintained around public spending. This should be marked by the value derived for money due to strategic and tailored spending directed to the public through initiatives such as the Expanded Public Works Programme and integrated human resource development.
The Department continuously needs to ensure that primary focus is to channel all energies to the core business of the Department. We will continue to improve the streamline planning and monitoring capacity in order to maximise improved service delivery and ensure that all service providers are focused on their contractual obligations and guaranteed quality of the final product.
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Continued strategic cooperation with Departments such as Safety & Liaison; Roads and Public Works; Education; Health; Social Development; Sports, Recreation, Arts and Culture; Agriculture and Rural Development; Economic Development and Environmental Affairs; Local Government and Traditional Affairs and other relevant stakeholders will further affirm the Departments commitment in creating an enabling environment for integrated human settlements. Communities are at the centre and forefront in policy development and implementation with regards to human settlements delivery.
As a Member of the Executive Council responsible for Human Settlements, I am satisfied that the information provided by the Department in this Annual Performance Report is consistent with the governments Medium Term Strategic Framework, strategic policy priorities as expressed in the Annual Performance Plan, and also express the wishes of the People of the Eastern Cape Province.
We appreciate the significance of capitalising on consistent decision-making of the Department. The importance of working and moving beyond the mere focusing on integration and coordination procedures to establish processes and mechanisms that would bring about strategic co-ordination, interaction and alignment for the benefit of our people.
Together moving South Africa forward.
______Helen Sauls-August MEC for Human Settlements, Safety and Liaison May 2014
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
2. REPORT OF THE ACCOUNTING OFFICER
Overview of the operations of the department
The Eastern Cape Department of Human Settlements is hereby submitting this annual report as part of its constitutional, legislative and civil responsibility to account on its performance against the resources allocated to provide services for the improvement of the lives of the citizens of the Province.
This report is submitted against the backdrop of the final electoral year and providing a reflection of the departmental performance against targets set out in the MEC’s Policy Speech, the Annual Performance Plan having taken into consideration policy directives espoused in the State of the Nation and State of the Province address including the imperatives outlined in the Outcomes 8 Priorities namely;
Accelerate the delivery of housing opportunities Ensure more efficient utilisation of land Improve Property Market Ensure access to basic services Facilitate Rural Settlement Development Enhance the capacity of the organisation
During the 5 year electoral period including the year under review, the department has delivered 68 290 housing units translating into 286 818 persons accommodated; constructed 2040 Social Rental units, targeting beneficiaries in the R1 500 to R7 500 income bracket and acquired/devolved 2346,5 ha of well-located and suitable land for housing development amongst others.
The department utilised the year under review as a consolidation process of the priorities set out by Government in line with the outcomes 8 priorities. The department continued with the process of repositioning itself in the implementation of its service delivery model. The reassignment of staff that has been implemented in the previous financial year has proved successful in improving the performance of the department against service delivery targets, therefore, a further 25 employees were re-assigned in the year under review to areas aligned to their competence. This success is evidenced by the improved Audit opinion the department has received as well as the fact that the department achieved 100% expenditure of its conditional grant.
The continuous improvement has also been evidenced by our Contractors and Social Housing institutions being recognised both provincially and nationally during the Govan Mbeki Human Settlements Awards for the quality products that have been produced including recognition of our bursary students who received merit awards for excelling in their studies in the built environment.
Achievements for the Year
In the quest towards improving the capacity of the department talent sourcing and management has been a key focus of the department. To this end the department continued with the implementation of its recruitment and retention strategy a consequence of which saw the recruitment of 46 permanent employees out of 49. This improvement is further evidenced by a lower staff turnover rate of 3% thus positioning the department of Human Settlements as an employer of choice.
We continued to enhance Institutional capacity and performance through training of 435 employees against a target of 400. Our department is the first nationally to have implemented the Compulsory Induction Programme with induction of 18 newly appointed employees.
The department continues to maintain sound stakeholder relations with its strategic partners. These are borne out by the good Sponsorship mobilisation turnout in support of the Destitute programme, the Women and Youth Builds, Govan Mbeki Awards and the Contractor Engagement Session. These priority programmes, inclusive of
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
the Military Veterans programme have received special focus during the year under review with a number of houses being handed over to the poorest of the poor.
In keeping with our Corporate Communications Strategy especially in the areas of Marketing, Branding and Media engagements, 100% implementation has been achieved with particular reference in establishment of external and internal newsletters. The radio talk shows embarked upon with SABC’s Umhlobo Wenene FM has brought the department closer to the public and allowed engagements on Human Settlement programmes across the province and throughout the South Africa thus improving our public image.
We have completed 12 187 housing units and 11 720 serviced sites against a target of 18 900 and 17265 respectively. In addition to the completed housing units, 8 312 housing units are at various stages of construction consisting of various milestones namely; 2 001 foundations, 1 557 wall plates, 2 663 roofs and 2 091 finishes accomplished. The construction process has translated in the creation of 16 578 jobs in various categories (1772 Women; 8239 Youth; 6493 Male and 74 people with Disabilities.
The department has played a pivotal role in the KSD Presidential Pilot Project with projects in Phola Park, Chris Hani & Mandela Park, Ngangelizwe and Joe Slovo at various stages of project planning and services installation. We are also actively participating in the Revitalisation of Small Towns initiative having approved projects in Chaguba, Tombo, Mdlakala, Bomvini and Port St John’s.
Challenges for the Year
Whilst we pride ourselves with the achievement of most of our objectives and the positive audit outcome the Human Settlement environment is still fraught with a number of challenges affecting smooth delivery of integrated and sustainable human settlements.
The department is still facing acute capacity limitations on growth in the area of human resources due to the constantly shrinking Equitable Share allocation versus the Conditional Grant. The department has innovatively utilised the OPSCAP funding within the Conditional Grant to attract planning and implementation capacity on performance based contracts and aligned to various projects. This has its own limitations and is unsustainable in the long run.
The lack of integrated planning interdepartmentally and with other sectors has the consequence of misalignment between planning and implementation of the Municipal Infrastructure Grant and Urban Settlements Development Grant as well as in the allocation of socio economic and other essential amenities. In response to these challenges the department is maximising its participation in the IGR structure and cluster system.
Overview of the financial results of the department
The total equitable share and conditional grant allocation during 2013/14 financial year has increased by 10.07% from R2.571 billion in 2012/13 to R2.830 billion. The department spent R2.828 billion of the R2.830 billion allocation, which translates to 99.93% expenditure compared to 88.64% expenditure in the 2012/13 financial year.
Transfers and Households
The conditional grant allocation for the year under review is R2, 524 billion which increased by 10.03% compared to the R2.294 billion allocated in the 2012/13 financial year.
R2, 254 billion funding has been allocated to implement the Human Settlement development in the Eastern Cape. 100% of the allocated budget was spent during the 2013/14 financial year compared to 87.32% expenditure on the Conditional Grant in 2012/13.
Compensation of Employees
For the 2013/14 financial year, the department has been allocated R226.458 million for Compensation of Employees which increased by 13.48% compared to the R199.559 million allocated in 2012/13 financial year. Expenditure was R 226.225 million which translates to 99.90% compared to the 99.86% expenditure in the previous year.
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Goods and Services
The goods and services budget increased by 1.93% from R69.140 million in 2012/13 to R70.502 million in 2013/14. The department was allocated R2.950 million in EPWP funding for Goods and Services during the 2013/14 financial year. The equitable share allocation of the Goods and Services budget decreased by 2.35% from R69.140 million in 2012/13 to R67.552 million in 2013/14. This is a major setback to the department’s operations compared to the demand for service delivery and the available resources.
The total expenditure is R69.641 million (98.78%) of the allocated budget of R70.502. One hundred percent (100%) of the equitable share allocation was spent and 72.16% of the allocated R2.950 million EPWP grant was spent during the year under review.
Capital Assets
The capital assets budget increased from R8.049 million in 2012/13 to R8.415 million in the 2013/14 financial year. Expenditure was R7.417 million (88.14%) compared to 100% expenditure recorded in the 2012/13 financial year. The unspent allocation is committed and a request for rollover has been made to Provincial Treasury.
Departmental receipts
2013/2014 2012/2013
Departmental receipts Estimate Actual (Over)/Under Estimate Actual (Over)/Under Amount Collection Amount Collection Collected Collected R’000 R’000 R’000 R’000 R’000 R’000 Tax Receipts Casino taxes Horse racing taxes Liquor licences Motor vehicle licences Sale of goods and 2,963 1,433 1,530 2,822 1,979 843 services other than capital assets Transfers received Fines, penalties and forfeits Interest, dividends and 8,823 (8,823) 1,529 (1,529) rent on land Sale of capital assets 63 (63) 345 (345) Financial transactions in 25 (25) 4,027 (4,027) assets and liabilities Total 2,963 10,344 (7,381) 2,822 7,880 (5,058)
The department over collected revenue by 249% for the year under review.
Rental revenue from the rental stock of the Housing Board was under collected by 52% due to tenants, who are predominantly low income earning citizens of the Province, defaulting on their rentals. The Department is in the process of transferring these properties to the beneficiaries and the rental income should decrease over the MTEF period.
R8, 8 million was received for Interest on Trust Accounts. The interest cannot be determined with reasonable accuracy, and is received by the Department from municipalities and other entities.
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Tariff Register
The Department has an approved Tariff Policy, which mainly addresses the rental stock of the Housing Board and they are predominantly allocated to low income earning citizens of the Province. This has influenced the Departments decision to remain with the same tariff structure to accommodate the low income tenants.
Programme Expenditure
2013/2014 2012/2013 Programme Name Final Actual (Over)/ Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Administration 112,847 111,627 1,220 117,736 117,703 33 Housing Planning 14,835 14,835 - 17,620 17,276 344 and Research Housing 2,692,395 2,691,523 872 2,426,205 2,134,900 291,305 Development Housing Asset 10,003 10,003 - 9,183 9,183 - Management Total 2,830,080 2,827,988 2,092 2,570,744 2,279,062 291,682
Programme 1: Administration has spent 98.92% of its adjusted budget. The under-expenditure is a result of Machinery and Equipment ordered, but not delivered on time. The expenditure has decreased compared to the previous financial year as a result of the decentralisation of regional expenditure to Programme 3.
Programme 2: Housing Needs, Research and Planning has spent 100% of its adjusted budget. The expenditure has decreased compared to the previous financial year as a result of the delays in filling of vacant posts and the cost cutting measures implemented within the department.
Programme 3: Housing Development has spent 99.97% of its adjusted budget. The under-expenditure is due to the EPWP grant. The expenditure has increased compared to the previous financial year as a result of the decentralisation of regional expenditure from Programme 1, additional staff appointed and 100% expenditure of the Human Settlements Grant.
Programme 4: Housing Asset Management has spent 100% of its adjusted budget. The expenditure has increased by 8.93% compared to the previous financial year.
Virements/roll overs
Transferring programme: Programme 1: Administration Economic Classification Adjusted Savings Virement Final Appropriation Appropriation R’000 R’000 R’000 R’000 Compensation of Employees 78,326 2 ,412 (2,179) 76,147 Goods & Services 32,215 1 794 34,009 Interest & rent on land 307 82 389 Households 36 27 (27) 9 Machinery & Equipment 3,249 1,906 (958) 2,291 Financial Assets - 2 2 TOTAL 114,133 4,384 (1,286) 111,847
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
The Virement of R2.179 million for Compensation of Employees to programmes 3 and 4 respectively to fund the payment of the Job Evaluation upgrades for levels 9 – 12. The R958 thousand is shifted from Machinery and Equipment and R27 thousand from Households within this programme to cover the payments of cellular phones which are classified as Goods and Services, Interest Paid and Financial Assets.
A roll over request for R948 thousand, realised as savings under Machinery and Equipment has been submitted to Provincial Treasury for laptops (R416 thousand), desktops (R395 thousand) and office furniture (R137 thousand) which were delivered in April 2014.
Transferring programme: Programme 2: Housing Needs, Research & Planning Adjusted Final Economic Classification Savings Virement Appropriation Appropriation R’000 R’000 R’000 R’000 Compensation of Employees 12,179 257 (257) 11,922 Goods & Services 2,866 - - 2,866 Interest & rent on land - - - - Households 13 - - 13 Machinery & Equipment 150 116 (116) 34 Financial Assets - - - - TOTAL 15,208 373 (373) 14,835
The Virement of R257 thousand for Compensation of Employees to programme 4 to fund the payment of the Job Evaluation upgrades for levels 9 – 12. The R116 thousand is shifted from Machinery and Equipment to Programme 1 to fund the payment of increased Audit Fees.
Transferring programme: Programme 3: Housing Development Adjusted Final Economic Classification Savings Virement Appropriation Appropriation R’000 R’000 R’000 R’000 Compensation of Employees 128,318 - 1,982 130,300 Goods & Services 30,950 822 1,631 32,581 Interest & rent on land - - 27 27 Households 2,524,299 125 (125) 2,524,174 Machinery & Equipment 7,108 1,845 (1,795) 5,313 Financial Assets - - - - TOTAL 2,690,675 2,792 1,720 2,692,395
The Virement of R1.795 million from Machinery and Equipment to Programme 1 Goods and Services to fund the payment of increased Audit Fees. The R125 thousand is shifted from Households within this programme to cover the payments of cellular phones which are classified as Goods and Services and Interest Paid.
A roll over request for R124 thousand, realised as savings under Goods and Services, has been submitted to Provincial Treasury for Office Furniture less than R5 000 which was delivered in April 2014.
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Transferring programme: Programme 4: Housing Asset Management Adjusted Final Economic Classification Savings Virement Appropriation Appropriation R’000 R’000 R’000 R’000 Compensation of Employees 7,635 - 454 8,089 Goods & Services 1,056 10 (10) 1,046 Interest & rent on land - - - - Households 91 - -- 91 Machinery & Equipment 1,282 505 (505) 777 Financial Assets - - TOTAL 10,064 515 (61) 10,003
The virements of R10 thousand from Goods and Service and R505 thousand from Machinery and Equipment to Programme 1 to fund the payment of increased Audit Fees.
Reasons for unauthorised, fruitless and wasteful expenditure and the amounts involved as well as steps taken to address and prevent a recurrence. Fruitless and wasteful expenditure of R 461k has been identified and disclosed for the period under review. This expenditure is mainly due to interest of R 365k paid on a court order resulting from a payment dispute in a housing project. Further cases of fruitless and wasteful expenditure have been as a result on interest charged on late payments and penalties charged for services requested and not utilised. Fruitless and wasteful expenditure disclosed is still under investigation and where negligence is found that resulted in such officials; responsible officials are charged with recovery.
Future plans of the department The focus areas for the department for the 2014/15 financial year are as follows;
o The completion, inspection and handing over of 12 979 housing units o The installation of services on 10 039sites o Connection of 4544 new sites to basic water and sanitation as part of the IRDP o Acquisition of 260 ha of land o Creation of 17 000 job opportunities o Provision of 393 affordable Rental Accommodation o Implementation of Military Veterans Housing assistance Programme with a target of 200 Military Veterans accessing housing opportunities o Special focus on the Destitute and Vulnerable groups o Rolling out of the Women and Youth Build programme across the province o Continue with the rolling out of the Finance Linked Subsidy Scheme
Supply chain management o There were no unsolicited bid proposals concluded for the year under review o SCM processes and systems are in place to prevent and detect irregular expenditure. An Irregular Expenditure Committee has been established in the Department to investigate reported irregular expenditure and to provide the HOD with findings for consideration. o The major challenge experienced is the capacity of staff to provide support on effective and efficient supply chain management processes towards improved service delivery. The department has however taken a conscious decision to address this challenge in the 2014/15 financial year.
Gifts and Donations received in kind from non-related parties Towards alleviating poverty and the restoration of dignity to the poor people of the Province, sponsorship for Youth Build, Women Build as well as Departmental Destitute Program was received in the form of domestic furniture, linen and groceries. Towards improving performance and in appreciation of quality housing construction, winners of
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
the Govan Mbeki Awards received gift vouchers, printers, laptops, IPADS and cell phones Towards accelerating housing delivery, venue and meals was donated for the Contractor Engagement Session organised by the Department
Exemptions and deviations received from the National Treasury No exemptions from financial reporting requirements have been received for the period under review.
The department continues to improve on the quality of the housing product delivered due to the focus made in acquiring the relevant talent and ensuring the participation of the key stakeholders in Human settlement development.
As the Accounting Officer of the Eastern Cape Department of Human Settlements I have the pleasure and honour of submitting the Annual Report of the Department for the 2012/13 financial year.
I would like to express a word of gratitude to the Executive Authority for her leadership, the Portfolio Committee for their judicious oversight, our strategic partners for their continuous support and the entire Human Settlements team.
______Gaster Sharpley Accounting Officer Department of Human Settlements Date: May 2014
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
3. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT
To the best of my knowledge and belief, I confirm the following:
All information and amounts disclosed throughout the annual report are consistent.
The annual report is complete, accurate and is free from any omissions.
The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.
The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.
The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.
The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.
The external auditors are engaged to express an independent opinion on the annual financial statements.
In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2014.
Yours faithfully
______Accounting Officer Gaster Sharpley May 2014
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
4. STRATEGIC OVERVIEW
4.1. Vision
A Department at the centre of creating integrated and sustainable human settlements in the Eastern Cape.
4.2. Mission
Facilitate and coordinate provision of quality, integrated and sustainable human settlements that offer our communities a better living environment.
4.3. Values
Core Values / Principles – Department of Human Settlements
Transparency and accountability Good governance and clear communication
Respect and courtesy Acknowledge the centrality of human dignity in all that we do
Professionalism and integrity Ethical conduct that upholds a client oriented public service ethos
Commitment and Teamwork Achieving more and better together
Service Standards High quality service delivery through client-oriented approaches
5. LEGISLATIVE AND OTHER MANDATES
The following illustrates specific constitutional and other legislative mandates, as per the relevant act(s) that govern(s) the Departments establishment and its operations, inclusive of government policy frameworks. These legislative frameworks govern the operations of the Department and direct and guide the accountability and responsibilities of the Executive authority, Accounting Officer in their capacity as political and administrative heads.
Constitutional Mandate Brief Description of the Constitutional Mandate
Constitution of the Republic of South Is the basis for executing the mandate of the Department of Human Settlements Africa (Act No. 108 of 1996) with particular reference to Section 26 and Schedule 4
Section 26: Access to adequate housing is a basic human right. Government is to ensure the environment is conducive to the progressive realisation of this right.
Schedule 4: National and Provincial governments have concurrent legislative competence. This Schedule guides the assignment of delegations of section components of the housing functions to municipalities.
Legislative Mandate Brief Description of the Act
The Housing Act, 1997 (Act No. 107 of This act creates the provision for the granting of housing subsidies for low income 1997) earners
Prevention of Illegal Eviction from This act repeals the Prevention of illegal squatting act (Act 52 of 1951) and makes Unlawful Occupation of Land Act, 1998 provision for a fair and equitable process to be followed when evicting people who have unlawfully invaded land, from their homes. The Act makes it an offence to evict without following the due process of law.
The Housing Consumer Protection Provides for the establishment of a statutory regulating body for homebuilders. The Measures Act, 1998 National Home Builders Registration Council registers builders engaged in certain categories of housing construction, and regulates the home building industry by formulating and enforcing a code of conduct
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Legislative Mandate Brief Description of the Act
The Rental Housing Act, 1999 as The Rental Housing Act repeals the Rent Control Act (1976) and defines government Amended responsibilities in respect of rental housing property. It creates mechanisms to promote relations between landlords and tenants.
Social Housing Act, No.16 of (2008) The Act provides for the establishment of affordable rental accommodation for low to medium income households in designated Restructuring Zones i.e places of economic opportunities, enabling spatial and social integration.
Home Loan and Mortgage Disclosure This Act provides for the establishment of the Office of Disclosure and the monitoring Act, 2000 of financial institutions serving the housing credit needs of communities
Promotion of Access to Information Act The Act underlines the importance of access to information for an open, democratic, 2 of 2000 (as amended) transparent society. The Act gives legislative form to Section 32 of the Bill of Rights of the Constitution and should be interpreted as legislation giving effect to a constitutional right.
Broad Based Black Economic The Act aims at promoting the achievement of the constitutional right to equality by Empowerment Act, No 53 of 2003 increasing broad-based and effective participation of Black people in the economy. It also sets parameters for the development of the Property Charter and the Construction Charter as mechanisms to secure commitment from stakeholders in the construction and property industries
Youth Commission Act The Act reflects government commitment to ensure the promotion and protection of the rights and needs of youth
Control of Access to Public Premises Ensures strict control guidelines over the access control to Public Premises. These Act controls enhance the safeguarding and securing of public premises thereby reducing the risks and threats to the State Organs. This in turn will assist in minimizing losses resulting from theft and unauthorized access
Promotion of Administrative Justice Act This Act gives effect to Section 33 of the Constitution (Just Administrative Action). It (No. 3 of 2000) ensures that decisions that affect the public are taken in a way that is procedurally fair and it gives people the right to request written reasons for decisions they disagree with. In this way, it creates greater transparency - people may be less tempted to act corruptly if they know they will have to explain themselves to the public
The Protected Disclosures Act (PDA) The PDA (often called the „Whistle-blowers Act) encourages employees to (No. 26 of 2000) disclose information about unlawful and irregular behaviour in the workplace. It offers protection from victimisation for „whistle-blower’s‟, as long as they meet the requirements and follow the procedure set out in the Act.
The Financial Intelligence Centre Act This Act creates the Financial Intelligence Centre and was designed to combat (FICA) (No. 38 of 2001) money laundering.
Division of Revenue Act Makes provision for the equitable division of revenue raised nationally, among the National, Provincial and Local spheres of government and the responsibilities of all three spheres pursuant to such division and for matters connected therewith. The Integrated Housing and Human Settlement Development Grant is managed in terms of the DoRA.
Inter-governmental Relations Establish a framework for National, Provincial and Local spheres of government to Framework Act of 2005 promote and facilitate the settlement of intergovernmental disputes and matters connected therewith
Minimum Information on Security Act It stipulates minimum information security requirements
Preferential Procurement Policy This Act gives effect to Section 217, Chapter 3 of the Constitution by providing a Framework Act, No 5 of 2000 framework for the implementation of the Procurement Policy contemplated in Section 217, Chapter 2, of the Constitution and to provide for matters connected therewith.
Public Finance Management Act 105, This Act regulates financial management in National Government and Provincial 1999 Government.
Transforming Public Service Delivery The White Paper provides a policy framework and a practical implementation strategy White Paper (Batho Pele) for the transformation of public service delivery.
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Legislative Mandate Brief Description of the Act
Public Service Act and Regulations This Act stipulates and regulates the functioning and management of the Public Services
Skills Development Act & Skills This Act regulates the training and development of the employees and the funding Development Levies Act thereof
Labour Relations Act Governs the employment practices and relations in the workplace
Occupational Health and Safety Act Regulates health and safety issues in the workplace
Policy Mandates Brief Description of the Policy
White Paper: A new Housing policy Commits Government to the establishment of socially and economically integrated and Strategy for South Africa, 1994 communities situated in areas allowing convenient access to economic opportunities as well as health, educational and social amenities
National Housing Code, 2000 Provides administrative guidelines for implementation of national housing policy. (Revised)
The Comprehensive Plan for the A multi-dimensional plan focusing on improving the quality of living environments, Development of Sustainable Human new tenure options, integration, fast track delivery, capacity building and anti- Settlements (Breaking New Ground, corruption measures. 2004)
National Environmental Management Provides several measures and tools by which the environment can be managed Act including strategic assessment, environmental impact, auditing procedures. In addition, regulatory instruments enforce the appropriate practices and protect the environment from harmful activities.
Policy on Emergency Housing Facilitates programmes that will ensure speedy provision of temporary housing Assistance within urban and rural relief to people within urban and rural areas in the province of the Eastern Cape, who find themselves in emergency situations. Examples are listed below; contexts Where existing shelters have been destroyed or damaged by natural causes.
Where prevailing situation poses an immediate threat to their lives, health and
safety. This can happen in instances where the area is not environmentally safe,
condemned building, built below the railway lines, flood plains, and tornados.
Where they have been evicted or face a threat of imminent evictions e.g. farm-
dweller and worker evictions or tenant evictions.
Policy on Housing People Infected The policy overcomes the barriers affecting housing delivery to HIV and AIDS With and Affected By HIV and AIDS victims and orphans who are always left destitute, by enhancing their sustainable human settlements. Ensure that there is uniform and equitable approach in the utilization, provision and management of facilities that are funded and managed under the ambit of this policy.
Performance Management and The policy clearly provides a clear and concise guide for managing the Development System Policy performance of staff
Supply Chain Management Policies Procurement Policy for Urgent Interventions for Housing Delivery in the Eastern and Procedures Cape - deals with elimination of backlog in housing delivery and accelerated housing delivery. Acquisition Management Manual – provides guidelines that regulate procurement of goods and services by organs of state in a fair, competitive, cost-effective, transparent and equitable manner.
Compliance and Risk Management Compliance to policies and eliminate risks in the procurement of goods and Policies services to fulfil the provisions of the Public Finance Management Act.
Employee Relations Policies Governs and guides the employer and employee relations in the workplace and management of employee wellness
Human Capital Policies Stipulates the guiding principles for the management of personnel in relation to recruitment, maintenance and exit
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Policy Mandates Brief Description of the Policy
Human Resource Development HRD policy clearly guides the employees and the employer on the training and Policies development of staff
Employee Relations Policies Governs and guides the employer and employee relations in the workplace and management of employee wellness
Information and Communication Ensures efficient and effective use of information and communication technology Technology Policy resources and applications
Monitoring and Evaluation Policy The framework represents a comprehensive, integrated and systematic wide organisation- approach to Monitoring and Evaluation across all programmes and projects within the Eastern Cape Department of Human Settlements.
Court Case Implication on Housing
The Government of the Republic of Right of access to adequate housing. It was declared that Section 26 (2) South Africa versus Irene Grootboom & of the Constitution requires the state to devise, fund, implement and supervise Others: Case No. CCT 11/00. measures to provide relief to those in desperate need. In this case, the state was to implement within its available resources a comprehensive and coordinated programme to realise the right of access of Grootboom and others to adequate housing.
Thubelisha Homes, Minister of Housing This case involved an eviction of 20 000 residents of Joe Slovo informal settlement and Minister of Local Government & in Cape Town. Housing, Western Cape versus Various This community has been living in Joe Slovo for considerable periods of time Occupants, the City of Cape Town and (since 1992), have established social and economic networks there, and the FirstRand Bank Limited: Case No. CCT alternative housing is unlikely to be of an equivalent nature. The community thus 22/08 appear to qualify as holders of informal land rights on the basis of 5 years beneficial occupation of the land prior to 31 December 1997. It was held that Section 2(1) of IPILRA provides that no informal land right holder may be deprived their informal land rights without their consent. Holders of these rights accordingly were not to be subjected to eviction.
Bio-Watch Trust versus Registrar, Promotion of access to information Act Genetic Resources & others: Case No. CCT 80/08
Dingaan Hendrik Nyathi v MEC for the Department of Health, Gauteng, Minister of Justice & Constitutional Development: CCT 19/07
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
OTHER MANDATES
MEDIUM TERM STRATEGIC FRAMEWORK 2009-2014
National Focus Provincial Focus
Informed by the MTSF and 2006 Speeding up growth and transforming the economy to create decent work and mandates, municipalities are expected sustainable livelihoods to adapt their integrated Development Building social and economic infrastructure Plans in line with these considerations. Rural development, land, agrarian reform and food security Strengthening education and building a skills and human resources bases Improving the health profile of the Province Intensifying the fight against crime and corruption Building a developmental state, improving the public services and strengthening democratic institutions Building cohesive, caring and sustainable communities.
National and provincial Departments Development of a five year strategic plan in line with Multi Year Development Plan. develop their five year strategic plans Integration of Budget requirements taking into considerations the medium term and budgets requirements taking into imperatives. account the medium term imperatives.
MTSF are reviewed annually at mid- MTSF are reviewed annually at mid-year Cabinet Lekgotla, with three year year Cabinet Lekgotla, with three year rolling MTEFs and POA as articulated in the Social Needs Cluster Programme rolling MTEFs and POA Action
MILLENIUM DEVELOPMENT GOALS
National Objectives Provincial Objectives (PGDP - Provincial Growth and Development Plan)
Half poverty and unemployment by Access to high quality employment and economic opportunities 2014
More equitable distribution of the Boosting the physical asset base of the poor benefits of economic growth and reduce inequality
Ensure universal access to basic Supporting access to basic services services
Improve the safety of citizens by Assuming access to legal entitlements and security reducing incidents of crime and corruption
Build a nation free of all forms of Victim Empowerment Programme (VEP) racism, sexism, tribalism and xenophobia
24 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE Services CD: Corporate Yise Njikelana Yise Officer Pam Adonis Pam Chief Financial
CD: Strategic Management & Thandeka Cebe Corporate Communications
Management Tabisa Nzuzo Tabisa Legal CD: Advisory Services & Contracts MEC for Safety & Liason Linda Mqokoyi Gaster Sharpley Human Settlements Head of Department Planning, Research & Municipal Support Helen Sauls-August CD: Human Settlement Mziwonke Mpofana Property Management CD: Human Settlements
Administration Daluhlanga Mpendu Program Facilitation & CD: Human Settlements
CD: Project Management & Quality Assurance Quality Suresh Galahitiyawa Officer Chief Operating Dr Sjekula Mbanga 6. STRUCTURE ORGANISATIONAL
25 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
7. ENTITIES REPORTING TO THE MEC
The table below indicates the entities that report to the MEC.
Name of Entity Legislative Mandate Financial Relationship Nature of Operations
Eastern Cape Aids Council (ECAC)
Rental Housing Tribunal Chapter 4 of the Rental Funded from money Primarily established to Housing Act no. 50 of 1999 appropriated by the stabilise the rental Provincial Legislature housing market and to resolve disputes between landlords and tenants
7.1 Additional information
7.1.1 Membership of Cabinet Committees and Cluster
Member of Social Needs Cabinet Committee Member of the Governance and Administration Cabinet Committee Member of Infrastructure Sub-Committee of the Cabinet Budget Committee
26 PART B PERFORMANCE INFORMATION
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES
The AGSA currently performs certain audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.
Refer to page 168 of the Report of the Auditor General, published as Part E: Financial Information.
2. OVERVIEW OF DEPARTMENTAL PERFORMANCE
2.1 Service Delivery Environment
The Department continues to make strides in extending quality housing opportunities to the people of the Eastern Cape and improve the quality of household life. The focus of departmental interventions is in addressing homelessness and access to basic services in the remote rural areas, informal settlements, Gap Market and affordable rental housing. Within these key interventions there are attendant challenges and constraints that require ongoing management. The extra-difficult topographical conditions in O.R. Tambo, Joe Gqabi, and Alfred Nzo pose a challenge to the speedy delivery since access to construction sites is limited. Creative ways, within the nationally-determined subsidy quantum, are explored to absorb the attendant costs arising out of extra-difficult site conditions.
While the Department is making inroads in the reduction of informal dwellings in the Province, a challenge of inadequate and decaying bulk infrastructure in the secondary towns remains. Responsible departments, Water Affairs and Cooperative Governance, are either faced with inadequate funding to address the bulk infrastructure backlogs in municipalities or there is lack of capacity within the municipalities to spend the meagre funding that is available, in the form of Municipal Infrastructure Grant, and Regional Bulk Infrastructure Grant. In the period under review, the Department had to find other creative ways to unblock urban housing projects that were stalled by inadequate services infrastructure. Through optimising on its available resources the Department intervened in 16 (sixteen) blocked projects and successfully unlocked 10 (ten) projects that will realise a housing yield of 12 000 units over three years in the secondary towns of the Province.
The acquisition of suitable and well-located land has been a critical focus of the department, and continues to be. These land parcels are targeted for medium density housing, affordable housing and Gap Market for middle income earners. There has also been a concerted effort in intervening in the distressed social housing sector through facilitating accreditation of new Social Housing Institutions and ensuring that municipalities take up the responsibility of expanding Restructuring Zones as part of their Spatial Development planning processes. Of course, development planning capacity within municipalities remains a challenge, and a hands-on support to targeted municipalities has commenced in the period under review.
Key and significant achievements of note in the period under review include: 1171 destitute families that have been provided with adequate shelter and basic services, 262 Gap Market beneficiaries that own homes, 12187 quality house that have been built, 11720 services that have been installed, 5007 defective houses that have been rectified, 78 social housing units that have been completed, 630 pre-1994 housing stock that has been transferred, 192ha of suitable and well located land that has been acquired and development plans prepared, 261 rental housing disputes that have been resolved through the Provincial Rental Housing Tribunal, 2 new and emerging Social Housing Institutions that have been supported and got accredited through the Social Housing Regulatory Authority, 10 historically blocked projects that have been unlocked in the secondary towns of the Province, and in the process with 16578 job opportunities created.
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The above achievements have been met within a context of challenges. Under and poor performance of contractors on site requires ongoing attention. The Department continues to enforce contract terms and directing municipalities who are appointed as developers of housing projects to do the same. Contract monitoring capacity is being enhanced at regional level through recruitment of contract employees. A Real-time project monitoring tool has been sourced to track site performance and ensure reliable and accurate reporting by project managers. Slow pace in the transfer of title deeds by municipalities has led to the rescinding of the conveyancing function from municipalities to the Province to speed up transfers. Hands-on support on expansion of Restructuring Zones to the two metropolitan municipalities, Buffalo City and Nelson Mandela Bay, Lukhanji and King Sabatha Dalindyebo continues. A collaborative programme between the Department and the Social Housing Regulatory Authority to support the emerging Social Housing Institutions in the accreditation process continues. Through clusters, IGR structures and bilateral engagement of sector departments the Department continues to ensure better and more integrated planning for sustainable human settlements. The Department has, furthermore, fostered strong ties with the Eastern Cape Planning Commission and SALGA at a provincial level while it participates actively in the IDP processes to ensure integrated planning.
2.2 Service Delivery Improvement Plan
The department has completed a service delivery improvement plan. The tables below highlight the service delivery plan and the achievements to date.
Main services and standards
Main services Beneficiaries Current/actual Desired standard of Actual achievement standard of service service 14/15 13/14 12/13
Provide Project Qualifying Housing Constructed so far 7 234 Construction of the Construction of the Management and beneficiaries housing units, 7 675 targeted 13 463 housing targeted 12 187 Quality Assurance serviced sites and units, 11 901 serviced housing units, 11 720 rectified 3 516 defective sites and rectification of serviced sites and houses 3 364 defective houses. rectification of 4 604 Management of the defective houses. construction process to be Management of the in line with project construction process management principles to be in line with project management principles
974 rental units 1532 social housing units 78 social housing completed. units completed.
Facilitate the approval Facilitate approval and Facilitate approval and implementation of 5 implementation of 2 socio- and implementation of Socio economic economic amenities in 8 socio-economic amenities prioritised upgrading amenities in prioritised projects upgrading project
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Batho Pele arrangements with beneficiaries (Consultation access etc.)
Current/actual arrangements Desired arrangements Actual achievements
Consultation of stakeholders through fortnightly Consultation of stakeholders through Consultation of stakeholders through site meetings, monthly PSC meetings, monthly fortnightly site meetings, monthly PSC fortnightly site meetings, monthly contract meetings, bi-monthly districts forums meetings, monthly contract meetings, PSC meetings, monthly contract and quarterly bilateral with individual local bi-monthly districts forums and meetings, bi-monthly districts forums, municipalities quarterly bilateral with individual local 11 475 general interaction with municipalities beneficiaries and quarterly bilateral with individual local municipalities Conduct 9 workshops and meeting with the 5 provincial steering committee
Liaison through workshops, meetings and/or Conduct workshops and meeting with Conduct 9 workshops and meeting public participation and brochures. the Tenant and Landlord provincial with the 5 provincial steering steering committee, national office, committee, national office, provincial provincial offices and Municipalities offices and Municipalities and availing and availing information through local information through local newspapers, brochures written in newspapers, brochures written in languages representing the languages representing the demographics of the province. demographics of the province. Establishment of PSC at project level and Establishment of PSC at project level Establishment of 167 PSC at project issues related to the community are lifted and and issues related to the community level and issues related to the promptly addressed are lifted and promptly addressed. community are lifted and promptly addressed.
Service delivery information tool
Current/actual information tools Desired information tools Actual achievements
Meetings, Brochures, pamphlets Conduct Consumer Education 11475 General Consumer Education workshops and meetings with the provincial steering committee, national office, provincial offices and Municipalities and availing information through local, newspapers, brochures written in languages representing the demographic of the province
Consultation of stakeholders through 167 PSC meetings fortnightly site meetings, monthly PSC meetings, monthly contract meetings, bi-monthly districts forums and quarterly bilateral with individual local municipalities
Complaints mechanism
Current/actual complaints mechanism Desired complaints mechanism Actual achievements
Customer Care Electronic Case Implementation of the Case Management Rollout of the Electronic Case Management Management System System to Municipalities System to all 8 Regions and Head Office
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
2.3 Organisational environment
The Department of Human Settlements has the approved Departmental Organisational structure that is currently implemented. This structure was also amended in order to be aligned to the Service Delivery Model. The functions that were amended during the 2013 -14 financial year are
that the Chief Director Housing Programs Facilitation and Administration, Chief Director Housing Property Management and Chief Director Project Management & Quality Assurance that were reporting to the COO report to the HOD.
the relocation of the Social Facilitation and Beneficiary Management from CD Research and Planning to CD Program Facilitation and separate into 2 Directorates i.e. The Directorate Social Facilitation and Beneficiary management
Relocate with all its resources the Project Management Unit under Chief Directorate Project Management & Quality Assurance to Chief Operating Officer
Moving of Alternative Building Technologies sub-directorate from Research reporting to the Directorate Project Management Unit.
Relocation Persal from HRM to Systems Controller under Internal Control and Pre Audit
The Department participated in the realignment process which worked very well. This was implemented for the purpose of aligning the skills and the experience of the employees with the relevant functions where they can excel and further improve the services of the Department. This has since turned around certain functions of the Department. This was also in line with the implementation of the Services Delivery Model of the Department.
2.4 Key policy developments and legislative changes
There have not been significant policy and legislative changes at national and provincial levels in the period under review. What the sector has been contending with is the review of the Housing Act, 1997 and other pertinent legislative pieces that are viewed as hindering a speedy acceleration of housing opportunities and creation of integrated and sustainable human settlements. The National Human Settlements Legal Forum, collaborating with the National Department of Human Settlements Policy Unit, has been identifying the policy impediments and triggering policy review discourse within Technical MINMEC and MINMECs of Humans Settlements. The Rental Housing Amendment Bill, Estate Agents Amendment Bill have served before the National Human Settlements Portfolio, and public hearings undertaken as part of the parliamentary legislation processes. The main rationale for initiating legislative review has been occasioned by a need to expedite the transformation of the entire residential property market in which duality of behaviour between the lower end of the market (state funded) and the upper end (private sector funded) continues. This market behaviour entrenches the gap market and inequality in the residential property market, affecting both ownership and rental security of tenure.
It is important to note that at a policy level a Green Paper on Creation of Integrated and Sustainable Human Settlements has been initiated in the period under review. This policy development process is seeking to clarify the human settlements sector’s role in facilitating the creation of sustainable communities. This is in pursuit of the expanded mandate of human settlements sector. The Green Paper seeks to carry forward the outcomes that are enunciated in Chapter Eight of the National Development Plan (Vision 2030) adopted by the National Cabinet during 2012.
The year under review has also seen to a policy emphasis on provision of sanitation services, and in particular the eradication of buckets in both formal and informal settlements. This has been done to give practical effect to Output Two: Access to Basic Services of Outcome Eight that is led by the human settlements sector. At a provincial level, a Provincial Framework for Unblocking Services Infrastructure in housing projects has been put in place, taking cue from the National Unblocking Strategy adopted by the Housing MINMEC in 2005. The Provincial Services Infrastructure Unblocking Framework is aimed at unlocking stalled housing projects in secondary towns of the Province, thereby expanding the provision of basic services and shelter through expediting the upgrading of informal settlements in economic hubs and emerging development nodes and corridors.
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
3. STRATEGIC OUTCOME ORIENTED GOALS
The Department has essentially 3 Strategic Goals which encompasses all its core functions and responsibilities that is directly aligned to the Departments mandate. The table below provides details of the associated outcomes in respect of the goals that speak to a 5 year performance cycle.
Strategic goal 1 Outcomes
Development of Sustainable Integrated Provide credible multi-year housing development plans and budget Human Settlements in the Eastern Cape by through a participative process with stakeholders 2014 through Development of a Policy, Research and Legislative Framework and Evidence-based Promote consultation in the housing policy and legislative framework Integrated Planning as encapsulated in the MYHDP development and review process and municipal IDP‟s Review and roll-out of Provincial Medium-Term Sustainable Human Settlement Research agenda
Provide outcomes based monitoring and evaluation of integrated plans
Strengthening Integrated Planning Milestones attained over the 5 year period are as follows;
• Department has rationalized its internal planning functions into a single Central Planning Unit. • The Department leads the Social Transformation Cluster and the Integrated Infrastructure Planning Task Group. • Department co-chairs MUNIMEC with Dept of Local Government and Traditional Affairs.
Policy Development White Paper for the Prevention of Informal Settlements has been developed and presented to various internal and external stakeholders. The last phase prior to its promulgation as an ACT requires it to be presented to the Executive Council
Strategic Partnerships In pursuit of the Sustainable Human Settlements Research Agenda, strategic partnerships were formed with various Universities, including, NMMU, Rhodes, Fort Hare and HSRC. These partnerships have translated into various research reports that will contribute to forward planning and policy development
Universities have also established Degrees in Human Settlements towards enhancing the capacity for Human Settlements development in the Province.
Performance Monitoring The Department has enhanced its performance monitoring and all levels of the value chain. There has been a continuous year on year improvement in the quality of strategic plans and performance measure leading towards outcomes based delivery environment.
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Strategic goal 2 Outcomes
Development of Integrated Sustainable Facilitate and co-ordinate the eradication of informal settlements in the Human Settlements by providing quality and Province sustainable living environment which is essential for upliftment and human dignity Facilitation and promotion of integration of communities utilising social and through delivering 123,000 houses and rental housing addressing the current housing needs over the 2010/11 to 2014/15 period Provide planning, project management, technical and quality assurance expertise to sustainable human settlement projects
The acquisition of land and the facilitation o f issuing of title deeds to promote homeownership
Informal Settlements Upgrading King Sabata Dalindyebo (KSD) Presidential Project: The Department is actively participating in the Presidential intervention in KSD towards the upgrading of informal settlements. Projects where significant progress has been achieved are Phola Park, Chris Hani and Mandela Park, Ngangelizwe and Joe Slovo. The focus in these areas is on delivery of infrastructure and services.
Further to this, MPCC’s have been fully constructed in Ngangelizwe and Mqanduli
Other projects denoting excellence in housing construction is the Siyanda project in Butterworth, Mayfield in Grahamstown, relocation programme in Zanemvula (Chatty), Addo Nomathasanqa in Cacadu District.
Further to this, the Department has intervened in the unblocking of historically stalled projects as a result of inadequate services infrastructure in secondary towns of the Province such as Amahlathi, Kouga, Sakhisizwe, Tabankulu and Intsika Yethu.
Analysis of Housing Backlog Project 786 has been initiated to address the backlog of projects loaded on the HSS system. The housing backlog currently stands at 606, 616.
This project will mainly address those projects that have not been closed off on HSS dating back to 1994. This intervention is aimed at closing out and unblocking problematic projects.
The overall project plan is encapsulated in the following diagram: The overall project plan is encapsulated in the following diagram:
Develop Individual Identify Additional Management of Information Gathering Assignment of Actions Project Close Out Action Plans Budget Requirements Reporting
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Accelerated delivery of housing Through Project 12 K, the department has appointed 12 established contractors for the construction of 1 000 units each with a project value of approximately R1.2billion. These projects are 90% rural and are awarded on a turnkey development basis. This strategic direction has proven to be effective in that the same contractor is responsible for pre-planning, planning and implementation, including the management and provision of support to Emerging Contractors.
Implementation of the Destitute and Vulnerable Groups programme has also contributed to the speedy response to the housing need for the poorest of the poor. Significant projects include; Nkantolo, Mbhashe, Peddie, Nkonkobe and Dukudeni. Planning has been advanced for the implementation of KSD 350, Nyandeni 200, Port St Johns 110, Ngquza 14, Mbizana 160, Matatiele 200, Chancele 30.
Project Management Capacitation Additional technical capacity is provided through the appointment of in contract employees in the areas of development planning, project management, contract monitoring and quality assurance. Establishment of a Project Management Office to support the Project Management Unit for the determination of project management standards and methodologies, policy implementation and human settlements innovation.
Affordable Housing Opportunities The provision of Social and Rental Housing provision has been implemented in the two Metro’s to varying degrees of success. The Department has been recognised for performance excellence of the Emerald Sky project and Walmer Link projects. In the period under review, two emerging Social Housing Institutions have been supported to achieve accreditation with the Social Housing Regulatory Authority. This is aimed at enhancing the capacity for provision of rental accommodation. Furthermore, the Lukhanji, KSD and Camdeboo Municipalities have been supported in expanding the restructuring zones for social and economic integration of the communities.
Suitable and Well located land for Human Settlements Development Total hectares acquired / devolved over the Outcomes 8 cycle amounts to 2346,5. These land parcels were acquired to respond to housing needs within Informal Settlements, Social Rental accommodation and mixed mode development projects.
Strategic goal 3 Outcomes
Provide political, administrative leadership Provide political and strategic leadership and management leadership to the support that ensures a well-managed, department effective, efficient pro-poor and citizen centric department as evidenced by unqualified audit Provide assurance and consulting activities on internal controls, risk reports management and governance processes and fight fraud and corruption
Effective management of financial resources to achieve an unqualified audit opinion
Provide streamlined procurement processes and effective contracts management
Enhance the organisational performance through well aligned organisational transformation programme, capacitated employees and sustainable ICT solutions Good Corporate Governance The Department has developed mandatory Policies and Strategies for Internal Control, Risk Management and Anti-Fraud and Corruption. Furthermore, the Risk Management Committee, Audit Committee are in place and functional.
Over the five year period, the Department has progressed from an adverse opinion to an unqualified audit opinion. The continuous improvement indicates the Departments commitment to effective management of its financial resources.
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Despite the inadequate capacity within Supply Chain and Contracts Management, the Department has improved in appointment and contracting of service providers, thereby contributing towards housing delivery and spending of the Conditional Grant.
The Housing Sector Specific Procurement Policy has been developed and approved in consultation with Provincial Treasury and the AG, and has subsequently been implemented.
A Contracts management system has been developed in-house which facilitates contracts administration and monitoring.
The ICT environment had made considerable progress through the implementation of a Departmental ICT Strategy (Phase 1).
Implementation of the New Service Delivery Model In line with the New Service Delivery Model, the Department has facilitated the proper placement of key personnel to areas aligned to their expertise and competence.
The Department has further upscale its recruitment drive resulting in the filling of permanent positions. Recruitment and retention of competent human capital has seen a low staff turnover rate which demonstrates the Department to be an employer of choice
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ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
4. PERFORMANCE INFORMATION BY PROGRAMME
4.1 Programme 1: ADMINISTRATION
Purpose
Administration has an internal and external focus. It performs a support function to the various programmes within Vote 11; provides overall management in the Department in accordance with applicable legislation and policies. The detailed purpose for each sub-programmes described below.
Sub Programme 1.1: OFFICE OF THE MEC
Provides political leadership and legislative interface between government, civil society and all other stakeholders. In addition, it provides the MEC with strategic and operational support.
Sub Programme 1.2: CORPORATE SERVICES
1.2.1: Office of the Head of Department
Provides strategic leadership and management of Human Settlements development and policy implementation in order to improve programmes delivery; this further includes assurance and consulting internal audit services, Anti- corruption and improve customer satisfaction and image of Department of Human Settlements
1.2.2: Office of the Chief Financial Officer
Facilitates Good Governance, financial viability, internal controls, institutionalizes supply chain management process, administer grant management and manage statutory reporting in line with legislative prescripts and regulation to achieve an unqualified audit opinion. Effective management of the financial resources to maximize service delivery
1.2.3: Strategic Management and Corporate Communications
To coordinate and oversee the operations of the Departmental Programmes which includes Strategic Planning, Corporate Communications, Monitoring and Evaluation and Stakeholder Engagement
1.2.4: Legal Advisory Services and Contracts Management
Provision of Legal Advisory Services and Contracts Management Services within the Department.
1.2.5: Corporate Services
This programme is responsible for staff recruitment, development and retention of competent workforce. It also includes the facilitation of institutional development and provision of comprehensive ICT solutions.
Sub-Programmes
1.1 Office of the MEC
1.2 Corporate Services 1.2.1.Office of the HOD
1.2.2.Office of the CFO
1.2.3.Strategic Management and Corporate Communications
1.2.4.Legal Advisory Services and Contracts Management 1.2.5.Corporate Services
36
ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Strategic Objectives
Office of the MEC Provide political and strategic leadership to the Programme
Office of the HOD Provide political and strategic leadership to the Department o Provide assurance and consulting services o Fight fraud, corruption and ensure compliance with Minimum Information Security standards o Provide customer care services
Office of the CFO Provide strategic leadership to the Programme Provide administrative support that ensures a well-managed, effective and efficient department Render sound financial management in terms of the relevant prescripts and legislation Render sound financial management in terms of the relevant prescripts and legislation Implement efficient Supply Chain Management Processes Management of departmental logistics and Submission of Capex Plan
Strategic Management and Corporate Communications Provide Strategic leadership to the Programme Guide strategic planning processes of the Department Institutionalize an outcome-based M&E system Provide communication services for the Department Promote sound stakeholder relations
Legal Advisory Services and Contracts Management Provide Strategic leadership to the Programme Efficient and effective Legal Advisory Services for a minimized legal risk
Corporate Services Provide strategic leadership to the Programme Improved recruitment and retention of competent Human Capital Promote sound employer/employee relations and employee wellness Enhanced Institutional Capacity and Performance Provide a comprehensive ICT enabling environment that facilitates service delivery
Strategic objectives, performance indicators, planned targets and actual achievements
The Office of the MEC through its Public and Private Stakeholder engagements enabled the implementation of key priority programmes. In particular, the Destitute and Vulnerable persons, military veterans received special focus and resulted in the MEC handing over houses to the poorest of the poor.
The Office of the HOD has succeeded in achieving a 100% expenditure on the Conditional Grant Budget allocation and creating and stable and productive delivery environment
Internal Audit has issued 14 internal audit reports towards the provision of assurance on governance, risk management and internal controls. Internal audits conducted are in respect of Annual Internal Audit Plan emanating from the Risk Register
46 Awareness Campaigns were held in the Regions to raise awareness on the Fraud Risk Management Framework as one of the main interventions in the fight against fraud, corruption and ensuring compliance with Minimum Information Security Services
ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Rollout of the electronic Customer Care Case Management System has taken place in all 8 Regions of the Province thereby enabling the Regions to capture, acknowledge and respond to complaints timeously. This is in line with the Customer Care Framework and providing a client oriented service
The Office of the Chief Financial Officer, through the implementation of its related programmes have contributed to ensuring a well-managed, effective and efficient department, the rendering of sound financial management in terms of relevant prescripts and legislation, the implementation of efficient supply chain management processes and management of departmental logistics and submission of Capex Plan. These strategic objectives are supported by the following significant achievements;
- Implementation of the Risk and Internal Control Frameworks - Production of 4 Risk Monitoring Reports; - Adherence to prescribed timeframes for the submission of monthly Circular 1 reports, Interim Financial Statements and Annual Financial Statements, monthly In Year Monitoring Reports - Provision of a Draft Supply Chain Management Policy - 100% implementation of the Capex Plan
The Department has furthermore submitted a credible Annual Performance Plan and Strategic Plan Strategic aligned to the Budget, MYHDP and NDP to guide the strategic processes of the Department.
Towards the institutionalisation of an Outcomes Based M&E System, the first phase of and electronic quarterly reporting system has been established (QPMS) as indicated in the Departmental M&E Policy Framework. This milestone has allowed for integrated reporting and improved quality of information across programmes
100% of the Corporate Communications Strategy was implemented in relation to Marketing, Branding and Media Engagements. In particular, the establishment of an internal and external newsletter and procurement of radio talk show has enabled the Department to reach out to the Public and allowed for direct engagement on matters pertaining to Human Settlements Delivery
Improved participation of strategic partners in Departmental programmes attest to sound stakeholder relations. These are borne out by Sponsorship mobilisation in support of the Destitute Programme, Women and Youth Build, Govan Mbeki awards and Contractor Engagement Session
Towards an efficient and effective Legal Advisory Service for minimised risk, the following was achieved;
- 32 Legal opinions / advices - 7 Legal education awareness workshops conducted - 14 new instructions given to the Office of the State Attorney - 6 Cases finalised - 18 Letters of demand responded to
Efficient and effective Contracts Management achieved through the conclusion of 308 contracts out of a target of 200. This achievement has a direct bearing on service delivery by ensuring that all procured contractors are contractually bound for effective delivery. In addition, poor performing contractors have been terminated.
Improved recruitment and retention of competent Human Capital is confirmed by a 3% staff turnover rate. This is significantly low and demonstrates that the Department of Human Settlement is an employer of choice. Other key pointers include the recruitment of 46 permanent employees out of 49 and ensuring that competency assessments were concluded for the 5 appointed SMS. A further 25 existing employees were reassigned to areas aligned to their competence.
ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Towards promoting sound employer/employee relations and employee wellness, the following was achieved;
- Resolution of 5 disputes and 3 grievances - Creation of a sustained, stable and effective relationship with Departmental unions - An effective wellness support programme implemented through ICAS and utilised by 80 employees - HIV/AIDS awareness campaigns held servicing 365 employees of which 165 participated in Voluntary testing
Institutional Capacity and Performance has been enhanced through the global training of 435 employees out of a target of 400. In particular, the Department is the first nationally to implement a Compulsory Induction Program for the Public Service for 18 employees. Batho Pele was revitalised in the Districts including the rollout of a Culture Change and Employee Satisfaction Survey
Towards the provision of a comprehensive ICT enabling environment that facilitates service delivery, the following was achieved; - Phase 1 implementation of the approved Corporate ICT Governance Framework which includes; ICT Charter, ICT Policy and governance structure; Development of 3 Systems which includes the Emergency Housing System, Housing Tribunal System and Service Desk System
ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ons i at - i v
n de , o e strengthenede nt e
m m o One (1) IT audit could not be performed internally because of its area of The specialization. outsourcing thereof was delayed due to procurement technicalities Elements ofFraud Detection Preventionand needs to b in the areas of Pre screeningService of Providers and vetting of SMS Bidand Committees None C None None
nned a 2013/2014 l
or f om p nt r
ctual f e
compliance with with compliance - m on to A i t
eve at e i i
h rg c 6% 20% non Fraud Risk Management Framework None Dev ta A None None
Fraud
nt
eveme
ual t c 00% Policy Speech Customer Framework Care implemented in Regions 8 1 implemented priorities 100%compliance with prescripts 94% 80%compliance with Risk Management Framework A Achi 2013/2014
t e rg
a
T
d e nn a Implement Customer Care Framework (8 Regions) 100% Policy Speech implemented Priorities 100%compliance with prescripts 100%compliance with internal audit plan 100%compliance with Fraud Risk Management Framework Pl 2013/2014
-
Policy
additional additional
tomer Policy, Care
nt
eveme 2/2013 ual t
c audits performed SONA. SOPA, PDGP, MTEF, MTEF, PDGP, SOPA, SONA. Fraud RiskPrevention Framework is an element oftheFraud Prevention Plan approved inJanuary 2013 Draft CustomerFramework developed elements of the Framework implemented (Cus External and InternalStrategic engagements (National Provincial)and to ensure programme alignment with Priorities) MEC 8 and Outcomes Compliance with audit prescripts achieved 6 Mandatory audits 8 and Whistle Blowing and Gift Policy in place Manual system in place A Achi 201 Political direction throughdriven MEC Public Priorities; Policy (IGR/MinMec/MuniMec) and Private Enterprise Stakeholders engagements visits Oversight Project and
d Corporate Security Management Security d Corporate s ADMINISTRATION ve i
ject litical and strategic strategic and litical b o c i g Corruption Corruption an - ate r t Provide customer care services care customer Provide Customer Care and Presidential Hotline Presidential and Care Customer Anti and corruption fraud, Fight with compliance ensure Security Information Minimum standards Internal Internal Audit and assurance Provide services consulting OFFICE OF THE HEAD OF DEPARTMENT OF DEPARTMENT HEAD THE OF OFFICE leadership strategic provide To the to management and department PROGRAMME 1: 1: PROGRAMME S MEC THE OF OFFICE po Provide Programme the to leadership Strategic objectives
40 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ons i at i v n de o nt e
m m o None None C None None
nned a 2013/2014 l
or f om p nt r ctual f e
m on to A i t
eve at e i i h rg c None None Dev ta A None None
and
nt
eveme ual t c 14 Financial Reports budget statements submitted within prescribed timeframes 100% alignment 2 Frameworks implemented 4 reportssubmitted 100% achieved A Achi 2013/2014
th st
and
May) July, 31 ork of of each plemented,
t st st th e January, 30
rg st
a
T
d
e
nn a frameworksim pril) Annual Financial
- - month) Financial - Interim (31 Statements October, 31 A Statements (31 Statements 14 Financial reports budget statements submitted within prescribed timeframes 100% alignment of programme plans with and priorities provincial reporting framew 6 reports4x submitted 100% Financial reports submitted within prescribed timeframes: 1 (15 - Circular Pl 2013/2014
rocess and AuditFramework
nt
eveme 2/2013 ual t
c Credible consolidated budget submitted by February 20 Electronic Case Management System reporting and priorities provincial framework Risk ManagementPolicy, Risk ManagementStrategy and Risk Charter reviewed by 31 March p Risk identification evaluation completed by March 31 completed by 31 March 17 Statutory submittedreports A Achi 201 Customer Strategy, Care Complaints Handling Procedure) implemented in out of2 Regions 8 Programme plans alignedwere with - Pre of Review
s ADMINISTRATION ve i
ject b
o OF OF THE CHIEF FINANCIAL OFFICER c
i g ate r t management in terms of of the in terms management relevant prescripts and legislation Management Accounting Management financial sound Render Financial Management Financial financial sound Render of the in terms management relevant prescripts and legislation Internal Control Unit Control Internal support administrative Provide well-managed, a ensures that effective and efficient department OFFICE Administration to leadership strategic Provide Programme the PROGRAMME 1: 1: PROGRAMME S
41 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ons i
at i v n de o
nt e
m m o None of Reprioritisation activities to budget allocation None C SCM the of Review Policy has been deferred to 2014/15 todue capacityconstraints none none None
nned a 2013/2014 l
or f om p nt r ctual f e
m on to A i t
eve at
e i i h rg c None 1 Evaluation not done None Dev ta A 10% None None None
nt
eveme ual t % compliance % c 100% Corporate Communications Strategy implemented 90 100% achieved 100% achieved 100% alignment of programme plans with and priorities provincial reporting framework 1 AnnualPerformance Plan aligned totheBudget & submitted MYHDP 95% Compliance with M&E framework A Achi 2013/2014
t nt of of nt e
rg a
T
d e
nn a 100% Corporate Communications Strategy implemented 100%compliance SCM with policies and procedures 100%management of departmentallogistics 100%compilation of Capex plan 100% alignme programme plans with and priorities provincial reporting framework 1 AnnualPerformance Plan aligned totheBudget & MYHDP 100% Compliance with M&E framework Pl 2013/2014
reviewed by reviewed
iewed on iewed 31
mance Plan approved
nt
es compiled compiled es eveme 2/2013 ual t
c Annual Perfor and Submitted M&E Framework rev March Complied with statutory reporting requirements Corporate CommunicationStrategy reviewed on 1 April 100%compilation plan of Capex Feb 15 by completed of APP Review Programme plans aligned with Strategic priorities Complied with statutory reporting requirements A Achi 201 Policies and procedures 31 March fleet of utilization the on Reports 4 vehicl of utilization the on Reports 4 subsidized compiled vehicles
-
n
s ADMINISTRATION ve i
ject b o c i g TEGIC MANAGEMENT AND CORPORATE COMMUNICATIONS CORPORATE AND MANAGEMENT TEGIC ate r t Provide communicatio Provide services for Departmentthe Institutionalize an outcome an Institutionalize basedM&E system Communications Corporate Strategic Planning Planning Strategic planning strategic Guide Department of the processes Evaluation and Monitoring STRA Administration to leadership Strategic Provide Programme the Management of departmental departmental of Management logistics Plan Capex of Submission Supply Chain Management Chain Supply Supply efficient Implement Processes Management Chain PROGRAMME 1: 1: PROGRAMME S
42 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ons i at i v n de
o nt e
m m o None More awards translated tocontracts None None C None None
nned a 2013/2014 l
or f om p nt
r ctual f e Presentation of of Presentation Advocacy
m on to A i t
eve at e i i
h rg c
new Normsnew &Standards to Contractors campaignfor Govan Mbeki None 108 None None Dev ta A Positive deviation due to: Awards & Framework None
nt
and Complied with
Programme plans
achieved eveme
ual t
c 0% 00% 8 10 Stakeholder engagementscoordinated 100% aligned with Strategic priorities Statutory reporting requirements 22 308 1 A Achi 2013/2014
t e rg
a
T
d e nn a 0%Improved recruitment 6 and retentioncompetent of 8 stakeholder engagement coordinated 100% alignment of with programme plans and priorities provincial reporting framework legislations of pieces 22 analyzed 200 quantitative contracts concluded 100% alignment of programme plans with and priorities provincial reporting framework Pl 2013/2014
nt
eveme
2/2013 ual
t
c 100% 168 APP on reviewed 19 Feb Complied Statutory with reporting requirementsProgramme plans aligned with Strategic priorities APP on reviewed 15 Feb Complied with Strategic priorities 22 A Achi 201 12 IGRforums /MuniMeccoordinated Statutory reporting requirements Programme plans aligned with
s ADMINISTRATION ve i
ject b o c ADVISORY SERVICES CONTRACTSMANAGEMENT AND i izedlegal risk g ate r t Human Resource Management Resource Human and recruitment Improved Human of competent retention Administration to leadership strategic Provide Programme the Efficient and effectiveLegal ServicesAdvisory for a minim Management Contract Efficient and effective Contract Management SERVICES CORPORATE the Programme Programme the Services Legal LEGAL LEGAL Administration to leadership Strategic Provide Stakeholder Relations Stakeholder stakeholder sound Promote relations PROGRAMME 1: 1: PROGRAMME S
43 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ons i
at i v n de o underway
nt e
m m o
C None Organisational Structure stillto be approved. Process of alignment Structure None with with the National Generic
Strategy to overcome to overcome Strategy underperformance None None
nned a 2013/2014 l
or f
om p
nt r ctual f e
m on to A i
t
eve at
e i i h rg c Comment on Deviations None None Dev ta A None 10% None
employee -
nt
None None Deviation from to target planned actual achievement for 2013/2014
eveme ual t c Maintain conducive working environment to promote sound employer relations employeeand wellness 50% achieved 100% A Achi 2013/2014
employee
- t
e
rg a
30 10 Actual Actual achievement 2013/2014 T
d e nn a
Maintain conducive working environment to promote sound employer relations employeeand wellness 60%compliance to Plan HR Solutions ICT 100% implemented Pl 2013/2014 Human Capital
30 10 Planned target target Planned 2013/2014
nt
ual achievement
eveme 2/2013 ual t Act 2012/2013 30 10
c
- A Achi 201 - -
ganisational Development ganisational
tion Technologies (ICT) Technologies tion
s ADMINISTRATION ve i wellness wellness ject b o c i
g ate r t Parliamentary questions and petitions (Number of days) Turnaround timeto respond to Parliamentaryfindings and Cabinet resolutions (Number of days) Turnaround timeto respond to 1.1: OFFICE OF THE MEC THE OF OFFICE 1.1: indicator Performance Information Communica Information ICT a comprehensive Provide that environment enabling facilitates service delivery Performance indicators Human Resource And Or And Resource Human Capacity Institutional Enhanced and Performance Capital sound Promote relations employer/employee and employee PROGRAMME 1: 1: PROGRAMME S 1.1 OF THE MEC: OFFICE
44 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e
l tabledbe
gy gy to overcom
ate None Strategy to overcome to overcome Strategy underperformance Policy Speech wil in thefirst Quarter None MEC programmemust be consideredsetting in realistic targets for 2014/15
Str underperformance None None
prioritized
to the 5th the to
oversight gements necessitated
on on nt ons i abling of PolicySpeech in 2nd and 3rd quarters and performance demonstrated inthe Additional visits project accommodated to enhance service delivery Comment on Deviations T postponed June 2014 by Legislature Positive deviation due to of MEC’s Acceleration handing over programmes Public Stakeholder engagements above indicator at i ervice delivery Comme Dev Human Settlements agenda pursued through strategic enga S imperatives meetings additional
t to
e rom rg f
4 ta
on Policy Speech not tabled 17 6 2 Deviation from to target planned actual achievement for 2013/2014 i 201 / at i
2013 62 11 Dev planned actual achievement for
ment
30 September Annual to Submitted Report Legislature. 41 6 14 Actual Actual achievement 2013/2014
128 15 Actual Actual achieve 2013/2014
31 March 30 September 24 12 12 Planned target target Planned 2013/2014
66 4 Planned target target Planned 2013/2014
ual achievement
12 26 Act 2012/2013 20 March 30 September 31 October 56
Actual Actual achievement 2012/2013 135 -
) )
munimec
/
FFICE OF THE OFHEAD DEPARTMENT O minmec
lfYear and • • PolicySpeech • Strategic Plan Plan Strategic • • Ha Number of Top of Top Number meetings management held Number of Strategic Strategic of Number coordinated engagements 1.2SERVICES: CORPORATE 1.2.1: indicator Performance Number of oversight project visits conducted • • Annual reports Number engagementsof MEC coordinated *Public Stakeholder engagements (IGR/ *Private enterprisestakeholders engagements Date of tabling Strategic Documents 1.1: OFFICE OF THE MEC THE OF OFFICE 1.1: indicator Performance
45 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e gy gy to overcom
gy gy to overcom
ate ate Str underperformance None None None None Str underperformance None The IT audit has been deferred to the 14/15financial year.
on on nt
on on ons i
at nt i ons i
at i Comme Dev None IT specializeda is audit which was to be outsourced but was delayed due technicalities during the tender process
Comme Dev None None Strategic direction of Department communicated as and thewhen need arises None t to e t to rom rg f
e 4 ta rom rg f
on i 4 ta 201
/ at on i i 201
/ at
i Dev planned actual achievement for 2013 None 1
None None 2 None Dev planned actual achievement for 2013 ment
Actual Actual achievement 2013/2014 1 14
10 20 6 4 Actual Actual achieve 2013/2014
Planned target target Planned 2013/2014 1 15
10 20 4 4 Planned target target Planned 2013/2014
1 16 Actual Actual achievement 2012/2013
- - Actual Actual achievement 2012/2013 10 20
cator
FFICE OF THE OFHEAD DEPARTMENT O
Number of internal audit audit internal of Number plan approved audit internal of Number issued reports Number of SMS meetings SMS of Number AUDIT INTERNAL 1.2.1.1: indi Performance the MEC the to of days Number Legislature respond to Findings Number of meeting staff held Number of days to of days Number Parliament to respond of Office from questions 1.2.1: indicator Performance
46 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
-
State State
e e Corruption to -
gy gy to overcom
gy gy to overcom ate ate Str underperformance None None Collaboration with affected Municipalitiestowards the appointment of dedicated
SCM SCM and Anti collaborate strategy a on for pre screeningservice of providers Str underperformance - Engage Management and Security Agency insupport the of process
on
are on on on
positively
nt nt ons on i
al and external
ati at i Comme devi None None Outstanding complaints projects within residing performance as well as a working good Intern factors have impacted on performance Comme Dev None a is officials of Vetting sensitive issue some in resulting measure of resistance Recruitment drive has impacted HRM with relations
or f t e rom rg f
t to
3 e ta on rom rg i f
201 4 ta / at i on i
201
/ at 43 75 0 Dev planned 2012 0 i
None 1% cases) (14 Dev planned Actual Achievement for 2013 0
17 4
105 0 Actual Actual achievement 2013/2014
4 99%cases responded within 30 days (1493 out of 1507) Actual Actual achievement 2013/2014 8
target
ANAGEMENT
M
60 30 35 Planned target target Planned 2013/2014 4
4 30 Planned 2013/2014 8 ECURITY S
ORPORATE ORPORATE C
- Actual Actual achievement 2012/2013 - 27
Actual Actual achievement 2012/2013 - - 30
-
ORRUPTION AND C
-
f reports on on f reports
NTI
A 2: screened 1. .2. Number of days to attend to attend of days Number lodged to complaints Number of regions of regions Number customer implementing framework care o Number implementation of framework care customer 1.2.1.3: CUSTOMER CARE PRESIDENTIALAND HOTLINE indicator Performance Number of service providers providers of service Number pre- Number of officials vetted pre of applicants Number screened indicator on of reports Number Fraud of implementation RiskManagement framework 1 performance Programme
47 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e
gy gy to overcom gy gy to overcom
ate ate moving towards the None None None none None Str underperformance Str underperformance personal to attend to Complaints – implementationthe of electronic system
on on nt ons i on on
at i nted nted by the nt ons None None None None None Comme Dev ati Comme devi impleme Municipalities t to e rom rg f
4 t to ta e on i rom rg 201
f
/ at i 4 ta
on i 201 None Dev planned actual achievement for 2013 None None None None / at i
Dev planned Actual Achievement for 2013
1 x 1 Halfx Year report; 4 Actual Actual achievement 2013/2014 10 Feb 15 April 30 April 12 Monthly x IYM reports; 12 DORA x reports; 4 Quarterlyx reports; 1 Annualx report;
Actual Actual achievement 2013/2014 ts;
target
4 Planned target target Planned 2013/2014 10 Feb 15 April 30 April 12 Monthly x IYM reports; 12 DORA x repor 4 Quarterlyx reports; 1 Annualx report 1 Halfx Year report; Planned 2013/2014
4 x 4 Quarterlyx reports; 1 Annualx report 1 Halfx Year report; Sept 12 Monthly x IYM reports; 12 DORA x reports; 12 Actual Actual achievement 2012/2013 15 Feb 31 March Actual Actual achievement 2012/2013
bmission bmission of rnal Control to to Control rnal
RATION
enhance service delivery Number of Number reports compliance/statutory submitted on of reports Number of Management Strategic Risk and Inte Date Date of completionof workplan and performance agreements of annual of completion Date performance assessments (PMDS) Date Date of final su Annual Programme (To Plan Performance Planning) Strategic 1.2.2 Financial Chief Officer of the Office ADMINIST indicator Performance 1.2.1.3: CUSTOMER CARE PRESIDENTIALAND HOTLINE indicator Performance
48 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e e outsidethe Irregular of
gy gy to overcom gy gy to overcom gy gy to overcom
ate ate ate Expenditure Condonement process None Acase by case assessment will be performed to enable payment on irregular procurement within 30 days Str underperformance Str underperformance None None Str underperformance None None None
irregular irregular on on on on . .
on on were nt nt ons ons
i i nt to to Irregular ons
at at i i i
at i Comme Dev None None Comme Dev None None None None Late payments relating Expenditure Payments withheld until expenditure was resolved. Comme Dev
lanned lanned lanned lanned
t to t for e rom p rom p f f
rom rg 4 4 f
4 ta on on i i on 201 201
i / / at at et to actual actual to et et to actual actual to et i i 201 / at
i 13 rg rg % 20 None None None None None Dev ta achievement for Dev ta achievemen 2013
Dev planned actual achievement for 2013 0 11 paid
%creditors of were
14 28 January 1 1 4 Actual achievement 2013/2014 Actual Actual achievement 2013/2014 Actual Actual achievement 2013/2014 17 89 within 30 days (6785/7627)
14 31 March 1 1 4 target Planned 2013/2014 Planned target target Planned 2013/2014 Planned target target Planned 2013/2014 17 30
UNIT
Actual Actual achievement 2012/2013 - 20 Feb Actual Actual achievement 2012/2013 - - - Actual Actual achievement 2012/2013 17 Out of 3773 payments: 3080 (82%) paid were within 30 days
CONTROL
sal FINANCIAL MANAGEMENT INTERNAL MANAGEMENT ACCOUNTING
: : 2 3 Date to submit Budget Consolidated Performance indicator Performance reports of statutory Number to treasury submitted payment of creditors (days) of creditors payment 1.2.2. Performance indicator Performance of statutory Number submitted reports financial for time Turnaround framework implemented framework on of reports Number of transver update systems (Logis, BAS) 1.2.2.. Approved internal control control internal Approved implemented framework management risk Approved 1.2.2.1: indicator Performance
49 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e e in line with line with in e gy gy to overcom gy gy to overcom
ate ate Str underperformance Finalize processthe review and approval of thePolicy by 31 May 2014 None None underperformance underperformance None None All procurement to b the Plan Str
nd quarter
st
on on
on on quarter
th nt nt ons i ons i
at
i at i and assets were delivered in the 2 quarter, same applies 4 the for Dev None None Procurement was done in the 1 None Comme Comme Dev Consolidationthe of the with Policy SCM Housing Sector Policy None None
t to t to e e rom rg rom f rg f
ta 4 ta on on i i
4 2014
201 at
/ at i i
None Dev planned actual achievement for 2013/ None None 2 actual achievement for 2013 None 2 days None Dev planned
4 Actual Actual achievement 2013/2014 4 4 2 31 March 29 March 4 Actual Actual achievement 2013/2014
4 4 Planned target target Planned 2013/2014 4 4 4 31 March 31 March 4 Planned target target Planned 2013/2014
4 4 Actual Actual achievement 2012/2013 4 4 4 Actual Actual achievement 2012/2013 31 March 31 March
LOGISTICS SERVICES AND MANAGEMENTASSET DEMAND DEMAND AND ACQUISITIONMANAGEMENT Supply Chain ManagementSupply
: : .1: 4.2 4
Number of updates on on of updates Number Asset Register Number of reports on the on of reports Number utilizationof fleet vehicles on of reports Number of subsidized utilization vehicles reports of Capex Number 1.2.2. indicator Performance policies and procedures procedures and policies of approved Date Plan Procurement the on of reports Number sittingof committeesbid 1.2.2. indicator Performance Date of reviewSupply of Management Chain 1.2.2.4
50 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e of m o c / / ready r
e
o ov t
y g
ate r t mphasis will be placed on None with interaction Regular Directors to ensuretheir submissions E running projects projects, employment contract workers S underperformance Controls in place to ensure deadline dates are adhered to. None Controls in place to ensure deadline dates are adhered to. None
); f -
n readiness o
- o
ie. Destitute Destitute ie. nt ons e i
m at i m e to non o Due Due to a demand for Special of sittings Evaluation Technical Committee collation in to delays Due sub from data of programmes Du projects ( the for identified projects implementationthe of YouthBuild Programme budgetary and capacity constraints C Dev Draftsubmitted was by 10 February but final copy was delayed due to late submissions None HRD extended the deadline forsubmissions None t to e rom rg f
4 ta
on i 201
/ at i
2013 22 days None 70 days None 2 1 3 Dev planned actual achievement for
;
1 x 1 Halfx Year Report 5 March 15 April 29 July 12 Monthly x IYM reports 4 Quarterlyx reports; 1 Annualx report; 14 3 3 Actual Actual achievement 2013/2014
10 Feb 15 April 30 April 12 Monthly x IYM reports; 4 Quarterlyx reports; 1 Annualx report; 1 Halfx Year Report 12 4 6 Planned target target Planned 2013/2014
chievement
- - 30 April 12 Monthly x IYM reports; 4 Quarterlyx reports; 1 Annualx report; 18 Actual a Actual 2012/2013 15 Feb 31 March 1 Halfx Year Report n
sk and
ce Plan (To Strategic
umber of umber
Internal Control to enhance enhance to Control Internal service delivery Build of Youth Number facilitated programmes Number of PACOM sessions sessions PACOM of Number supported Strategic on of reports Number Ri of Management (PMDS) N reports compliance/statutory submitted Planning) Date of completionof plawork and performance agreements of annual of completion Date performance assessments Performance indicator Performance Date of final submission of Annual Programme Performan 1.2.3: Strategic Management And Corporate And Communications1.2.3: Management Strategic ADMINISTRATION
51 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e m
o c r e o ov t
y gy gy to overcom g
ate ate r t S underperformance None None new the in Prioritize with year financial appropriate funding Str underperformance None None Assist theProgramme in compilationthe of regional plans
n
o on on nt nt ons ons e i i
udget of the unit
m at at i i m o C Dev None None b The was cut funds and were used to fund M&E Training courses Comme Dev None None PMQA head office has a central of duty regional planning. All regions are coordinated the by head of respect in office planning and execution. ned ned n a lanned lanned l
rom p rom p f f
4 on on i i
4 2014 201
/ at at et to actual actual to et et to actual actual to et i i rg rg
1 None None None 8 Dev ta achievement for 2013/ None None Dev ta achievement for 2013
1 15 March 3 0 Actual achievement 2013/2014 6 (4 Quarterly, 1 Year Half ; 1 Annual) 4 Actual Actual achievement 2013/2014 get get
2 15 March 3 8 tar Planned 2013/2014 6 (4 Quarterly, 1 Year Half ; 1 Annual) 4 Planned target target Planned 2013/2014 f Year ;
NG:
6 (4 Quarterly, 1 Hal 1 Annual) 4 2 Actual Actual achievement 2012/2013 Actual Actual achievement 2012/2013 - 3 3
of
-
MONITORING AND EVALUATION: AND MONITORING STRATEGIC PLANNI
Number of programme of programme Number audits performance conducted / of programme Number departmental conducted evaluations Performance indicator Performance of compliance/ Number reports statutory submitted and compiled 1.2.3.2 Planning Forum Forum Planning sessions held of District Number Planning Strategic sessions held Date Date of submission approved Annual Plan Performance Macro of Number 1.2.3.1 indicator Performance
52 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e
be held with to ensure the gy gy to overcom gy to overcom A
ate ate underperformance underperformance IGR of coordinators As forummeetings in Human Settlements Sector, constant planning of will meetings DLGT seatingmeetings.these of None None Str underperformance None Planfor the next financial year in advance None Str -
supported
tlements on on on ormation nt nt ons ons inf i i at at i i Dev Local of Dept. Government and TraditionalAffairs planned but meetings forum IGR 8 managedto coand host ordinate meetings.6 Human Set agenda supported whenever related opportunities presented themselves. Presentation of new norms standards and to contractors and advocacy campaign of Govan Mbeki Awards Framework necessitated increasean in the number of Comme Dev MEC additional programmes of in the uploading Delay 2013/14 budget Increase on demand for FLISP Comme lanned lanned lanned
rom p rom p f f
4 4 on on i i 201 201 / / at at et to actual actual to et et to actual actual to et i i
rg rg
2 8 1 19 Dev ta achievement for 2013 2 5 Dev ta achievement for 2013
al achievement
10 12 15 22 Actual achievement 2013/2014 6 13 Actu 2013/2014
8 4 16 (4 external/12 internal) 3 target Planned 2013/2014 8 8 Planned target target Planned 2013/2014
- 10 - RELATIONS Actual achievement 2012/2013 12 Actual Actual achievement 2012/2013 12 8
coordinated coordinated STAKEHOLDER CORPORATE COMMUNICATIONS of departmental
ber ber of stakeholder meetings supported supported meetings Num engagements coordinated Number of IGR forum IGR forum of Number meetings IGR forum of Number 1.2.3.5 indicator Performance Number published newsletters of Number communication strategy elementsimplemented Performance indicator Performance MEC of Number programmes outreach supported 1.2.3.4
53 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e gy gy to overcom
ate Str underperformance None None r
the
on on akfast Session Session akfast
nt ons i
at i Directorate supportedthe MEC’s destitute handove Comme Dev Stakeholder Engagements coordinated. component The responded to an unplanned mandatefrom the National Department the hosting to in relation Bre the of Womenand Build. In addition, programs None lanned lanned
rom p f
4 on i 201
/ at et to actual actual to et i rg
6 None Dev ta achievement for 2013
10 4 Actual Actual achievement 2013/2014
4 4 Planned target target Planned 2013/2014
- RELATIONS Actual achievement 2012/2013 -
stakeholder
STAKEHOLDER
Number of reports on on of reports Number of implementation the IGR and stakeholder engagements sessions engagements supported supported engagements Number of Number 1.2.3.5 indicator Performance
54 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
o e gy gy t
ate ercom None Str ov underperformance None None None None
on on nt ons i
at i None Comme Dev None None None None t to e rom rg f ta on i 4 2014
at i
ne None Dev planned actual achievement for 2013/ None None No None
y IYM reports; IYM y
10 Feb 15 Feb 30 April 12 Monthl x 4 Quarterlyx reports; 1 Annualx Report; 1 Halfx Year Report 4 Actual Actual achievement 2013/2014
10 Feb 15 April 30 April 12 Monthly x IYM reports; 4 Quarterlyx reports; 1 Annualx Report; 1 Halfx Year Report 4 Planned target target Planned 2013/2014
ement
30 April 12 Monthly x IYM reports; 4 Quarterlyx reports; 1 Annualx Report; 1 Halfx Year Report - Actual achiev Actual 2012/2013 15 Feb 31 March
an (To Strategic Planning) Planning) Strategic (To an Number of reports on Strategic Strategic on of reports Number Internal and Risk of Management service enhance Control to delivery performance assessments (PMDS) of compliance/statutory Number submitted reports Programme Annual Performance Performance Annual Programme Pl Date of completionof plan work and performance agreements of annual of completion Date Performance indicator Performance Date of final submission of 1.2.4: Legal Advisory Services Contracts Management and 1.2.4: Advisory Legal 1.2.4.1: ADMINISTRATION
55 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e the
gy gy to overcom gy gy to overcom
ate ate Str underperformance None None Str underperformance None Continue with Educational Awareness workshops on compliance Development of Prescriptto finalizedbe on completionthe of white paper that under is development
l
on on on on
nt nt ons ons i i
at at i i Comme Dev More awards translated to contracts None Comme Dev None Unplanned legal fees arising out of greening fraudulent tender giving riseto additiona escalated legal fees at is Prescript developmental stage. The process of developing the white paper took longer than anticipated lanned lanned lanned
rom p rom p f f
4 4 on on i i 201 201
/ / at at et to actual actual to et et to actual actual to et i i
rg rg
None R479,095.70 1 Dev ta achievement for 2013 108 None Dev ta achievement for 2013
22 R1,579,095.70 0 Actual achievement 2013/2014 308 4 Actual Actual achievement 2013/2014
1.1m
22 R 1 target Planned 2013/2014 200 4 Planned target target Planned 2013/2014
4 - Actual achievement 2012/2013 168 Actual achievement 2012/2013 22 R1,579,095.70
ions
SERVICES peding service service peding erformance indicator erformance
Number of qualitative of qualitative Number concluded contracts monitoring on Report of management and obligat contractual MANAGEMENT CONTRACT 1.2.4.3: indicator Performance awareness and budget budget and awareness reduced fees for legal of necessary Number developed prescript Number of legislations legislations of Number im analysed delivery Educational Legal 1.2.4.2: LEGAL LEGAL 1.2.4.2: P
56 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e
gy gy to overcom
ate 2013/14. None None Str underperformance None None PMDSsystem has been linkedtothe Persal systemin order to speed up submissions of reviews and prompt assessments of annual performance of employeesfor year
on on t deration deration
ons i
at i 2012/13. None None Commen Dev None None The deviations due were to delays by employees in the submission of Annual Assessments thisand necessitated rescheduling mo the of sessionsfor the year lanned lanned
rom p f
4
on i 201
/ at et to actual actual to et i rg 2013 None None months4 None None Dev ta achievement for
29 Jan 2014 15 April 30 Sept 12 Monthly x IYM reports; 4 Quarterlyx reports; 1 Annualx Report; 1 Halfx Year Report 4 Actual Actual achievement 2013/2014
ril
10 Feb 15 Ap 30 April 12 Monthly x IYM reports; 4 Quarterlyx reports; 1 Annualx Report; 1 Halfx Year Report 4 Planned target target Planned 2013/2014
- 9 July 12 Monthly x IYM reports; 4 Quarterlyx reports; Actual Actual achievement 2012/2013 19 Feb 31 March 1 Annualx Report; 1 Halfx Year Report
ed service delivery Number of Number compliance/statutory submitt reports on of reports Number Management Strategic of RiskInternal and enhance Control to annual performance performance annual assessments (PMDS) Date Date of completionof work and performance plan agreements Date of completionof Performance indicator Performance Date of final submission of Annual Programme (To Plan Performance Planning) Strategic 1.2.5: Corporate Services ADMINISTRATION
57 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e gy gy to overcom
ate None None None None Str underperformance None None None None None
on on nt ons i
at i None None None None Comme Dev None None None None None lanned lanned
rom p f on i 4 2014
at et to actual actual to et i rg None None None None None None None None None Dev ta achievement for 2013/
30 April 30 April 4 4 90 days 30 Days 6 60 days 4 Actual Actual achievement 2013/2014
anned target target anned
30 April 30 April 4 4 90 days 30 days 6 60 days 4 Pl 2013/2014
MANAGEMENT
60 days - - - - - Actual Actual achievement 2012/2013 31 March - 4
post (no. (no. post
benefits (no. of days) of (no. benefits of employee Number programme wellness reports implementation submitted no. days) no. of Consultation Number with Labour Meetings Unions. for the time Turnaround ofpayment service plan a to fill time Turnaround vacant funded of days) to time Turnaround ( grievances to respond Employee Wellness Employee Plan and of accurate Number reports Persal updated on of reports Number HR of implementation Date of approved of approved Date plan recruitment of approved Date 1.2.5.1: RESOURCESHUMAN indicator Performance
58 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e
tochange
gy gy to overcom ly
ate consultation before approval To be done electronically only Unlike because budget for 1% is COE the from training inadequate tomeet all training needs required by Department. Controlsto be strengthened for deadlinestomet. Engage with DPSAtofast track the national coordination process of these posts. Balasela integrated inthe Str underperformance Implementcontrols to adhere to deadline dates The Plan is funded and will be implemented in 2014/15. None None Allow enough time for
in
17 EE 17 plan by
– – that is managedthat is
delayed training
on on
had filled the under national
nt ons i priority priority sts
at i Po e to Consultation with the finalizing the national the national finalizing stakeholders Itsubmitted manually was the on 05 June 2013. It was returned back becausePSETA only acceptthe electronicsubmission. Other programmes which were additionalto the plantarget accounts forthe over performance. Draft available. Submission of Final report pending presentation tostakeholders 78 JE coordination by DPSA coordination process. There was a changefocus toof Comme Dev Du HRP team the excluded Plan EE Existing Gender and JobAccessstrategy Reviewed the 2014 with Gender and JobAccess strategies. None None Due toconsultation with the
t to e rom rg f
4 ta
on
i
201
/ at i
78 1 7 Days 1 Year None None Target date not achieved None 35 I Year Dev planned actual achievement for 2013
ne chieved
435 42 0 8 July 2013 Not achieved 31 March 2014 31 March 2014 Target date not achieved 30 Ju a Not Actual Actual achievement 2013/2014
120 1 30 June 31 March 31 March 31 March 31 March 30 June 400 31 March Planned target target Planned 2013/2014
nt
31 Mar 47 Job Descriptionssigned 10 JobEvaluations commenced 1 31 March 31 March 31 March 5 July 323 Actual Actual achieveme 2012/2013 8 April 21 Dec
f approved f approved
Number of reports for of reports Number Date of reports on HR on HR of reports Date plan mandatory of Number Evaluated Jobs Number of training of training Number created opportunities Date of PMDS report report of PMDS Date submitted Date o and Standards Service Improvement Plan WSP of approved Date Date of Approved of Date Approved Equity Employment (EE) Plan PMDS of Date Approved Plan Date of approved HR HR of approved Date Plan 1.2.5.2: RESOURCEHUMAN ORGANISATIONAL AND DEVELOPMENT indicator Performance
59 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e
share
Organizational
gy gy to overcom gy to overcom
ate ate None Amathole BCMM and will offices Regional network connectivity. None be will Systems developed based on ICT initiatives. Strategy None Adherence to Section 42 transfer protocol by DRPW. Str underperformance Integrated Performance Assessment Tool Amend according tothe Generic National Structure Str underperformance
y Transfer)for the
on on on
nt nt ons ons i i
at at i i None Delays by incablingDRPW the Amathole regionalBCMM and offices None The reasonfor deviation was purely based on prioritization and need for additionalsystems from the user communit None spatially the in Assisted referencing 8137 land parcels (Section 42 Comme Dev the integrated organizational performance assessment tool which caters for elements of Balasela. There is a nationalnew Generic structurethat the Departmental structuremust be aligned to Comme Dev
t to t to
e e rom rom rg rg f f
4 4 ta ta
on on i i
201 201
/ / at at i i
None None 1 Draft Draft organizational structure Dev planned actual achievement for 2013 None 1 None 1 Dev planned actual achievement for 2013
3 3 Not achieved Actual achievement 2013/2014 31 March 6 3 4 Actual Actual achievement 2013/2014
31 March Planned target target Planned 2013/2014
3 2 Planned target target Planned 2013/2014 31 March 7 3 3 nt
- 1 1 1 Actual Actual achievement 2012/2013 - 6 Actual Actual achieveme 2012/2013 Not achieved
of MATION COMMUNICATION TECHNOLOGIES (ICT) TECHNOLOGIES COMMUNICATION MATION
of LAN ofICT strategy
Number of GIS of GIS Number established solutions Number ICT of systems implemented Number ICT of systems ICT with line in reviewed Strategy Corporate Governance Governance Corporate Framework Number managed infrastructure Number initiatives implemented Performance indicator Performance ICT of Date Approved Date of approval of approval Date Structure Organizational INFOR 1.2.5.3: the Implementation of Implementation the Balasela Programme 1.2.5.2: RESOURCEHUMAN ORGANISATIONAL AND DEVELOPMENT indicator Performance
60 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
-
33 33 e
R’000 Expenditure (Over)/Under gy gy to overcom
ate curred under Str underperformance None Ring fencing of budgetfor verification of ICT assets
4,108
111,943 116,051
R’000 Actual 2012/2013 Expenditure traints in Quarter 4 4 Quarter in traints
on on nt ons
i
at i 4,108
Comme Dev department None Budgets cons resulted in delays in updating departmental asset register 111,976 116,084
t to e Final R’000 rom rg f
4 ta
Appropriation on i
201 / at i
None None 60 days Dev planned actual achievement for 2013 - 20 1,220 1,2
R’000
Expenditure (Over)/Under
1 31 March Actual Actual achievement 2013/2014 6,033
105,594 111,627
performance. The programme did not overspend, but through prudent management in management prudent through but overspend, not did programme The -performance. R’000 Actual 2013/2014
Expenditure
6,033 1 31 Jan Planned target target Planned 2013/2014 106,814 112,847
Final R’000 Appropriation
Actual Actual achievement 2012/2013 - 31 Jan
MATION COMMUNICATION TECHNOLOGIES (ICT) TECHNOLOGIES COMMUNICATION MATION Programme Name
- of ICT ICT of
Sub
umber spending of 1.08% for 2013/14 ( 2012/13 it was 0.03%), as is reflected in the table below. table the in reflected is as 0.03%), was it 2012/13 ( 2013/14 for 1.08% of spending Sub-programme expenditure Office of the MEC of the Office Services Corporate Total Corporate Governance Governance Corporate initiatives implemented Date of completionof verified Register Asset Changes planned targets: to N 1.2.5.3: INFOR 1.2.5.3: indicator Performance None None budgets Linking performance with The main cost driver of this programme’s budget is compensation of employees. The programme overall achieved 72% of its indicator targets as the austerity measures measures austerity the as targets indicator its of 72% achieved overall programme The employees. of is compensation budget programme’s this of driver cost main The non of areas the impacted year financial the during implemented
61 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
4.2. Programme 2: HOUSING POLICY, PLANNING AND RESEARCH
Purpose
To conduct evidence-based research, develop customised policies as well as integrated aligned plans, and support municipalities towards sustainable Human Settlements agenda
Sub-programmes
ADMINISTRATION POLICY PLANNING RESEARCH NEEDS
Strategic objectives
Provide strategic leadership to the Programme Development and review of human settlement policies Development of a credible, integrated and sustainable Human Settlements Development Plans and coordinate and consolidate HSDG Business Plan Review and roll-out of Provincial medium term sustainable Human Settlements Research Agenda Generate evidence-based knowledge towards Comparative Construction models
Strategic objectives, performance indicators, planned targets and actual achievements
Towards the establishment of a Policy enabling environment, the Programme has developed 2 Human Settlements Policies and reviewed 3.
Evidenced by the approval of the Conditional Grant Business Plan by National and Provincial Treasury and National Department of Human Settlements, the Department has aligned its targets to the budget allocated. Processes towards the finalisation of the Multi-Year Housing Development Plan (MYHDP) include the assessment of 104 projects to establish their state of readiness for implementation and the mentoring of 15 Municipalities on development planning matters.
Significant achievements are noted in the area of the review and roll-out of the Provincial medium term sustainable Human Settlements Research Agenda. These include the production of 10 research reports and 8 research papers. Of note is the MOU entered into with Rhodes University to support the Department in areas of research
Five (5) reports on housing construction comparative models, 5 reports on the implementation of Innovation and Knowledge Management Strategy and an Alternative Building Technologies Framework have been developed. These all contribute towards the generation of evidence-based knowledge for construction comparative models
62 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
over sing sing
ons i
Programme at i v
n de o
funding received from reportsourced externally nt e
m m fice of the COO, hence its its hence COO, the of fice o constraints Concurrent exercise on term Long Planning is being undertaken by the of withdrawal from the Additional OPSCAP budget enabling the performance Additional relative tothetopic on housing comparativemodels C None Special Needs Policy has been incorporated into the existing DestitutePolicy Review of Emergency Hou AssistancePolicy has been deferred to 2014/15 tocapacitydue nt to to me t
e om eve r rg f
ta on i
at i 2013/2014 ual Achi
ct
or 1 5 1 Dev planned A f None 1 1
nt
eveme ual t reports c
5 100% alignment toof plans and priorities Provincial compliance reporting timeframes met 2 humansettlements developed 3 humansettlement policies reviewed 0 10 research completedreports A Achi 2013/2014
t e human rg a
T
d
e
nn H a humansettlement policies
C 4 Reports housing on construction Comparative Models 100% alignment of programme plans with and priorities provincial reporting framework 3 developed 4 humansettlement policies reviewed 1 5 Reports on settlements development research Pl 2013/2014 R A E ES R
nd a
G N I escribed
NN nt A
L P
, Y eveme Feb Feb C ual I t th L c
submitted as pr A Achi 2012/2013 by completed of APP Review 15 Alignment of PlansProgramme Priorities Strategic with Allcompliance reports O P
G N
SI
U
O s H
ve : i
2
ject ME b o
M
c A
i
R
g G O ate r R t Generate evidence based based evidence Generate towards knowledge Models Comparative Research of rollout and Review Medium Term Provincial Human Sustainable Settlements Research Agenda Needs Planning credible, of a Development sustainable and integrated Human term long Settlements Plan Policy Development and review of human settlement policies leadership to the to leadership Programme P S Administration strategic Provide Strategic objectives
63 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e
gy gy to overcom gthen internal n terms of the ate
Compliance to dates be met i revised PMDSPolicy - - Str underperformance be will process Planning prioritized infuture. Stren controls and adherence Policies to HR outthe of was
on on nt
ons i
at i ate submission of StrategicPlanning process Date for finalization of of finalization for Date PMDS process rescheduled thewithin Department None None Comme Dev APP of submission Final to StrategicPlanning delayed to accommodate arising priorities L performance and work plan agreements some by officials lanned lanned
rom p f
4
on i
201
/ at et to actual actual to et i rg 90 days ta achievement for 2013 8 days 15 days None None Dev
4 2013/2014 18 Feb 30 May 30 July monthly(IYM)1212 DORA reports 4 Quarterly 1 Half yearly 1 Annual Report Actual Actual achievement
2013/2014 10 Feb 15 April 30 April 12 Monthly (IYM); 12 DORA reports; 4 Quarterly; 1 Half yearly ; 1 Annual Report 4 Planned target target Planned
- Actual Actual achievement 2012/2013
ADMINISTRATION
Number of reports on on of reports Number Management Strategic of RiskInternal and enhance Control to service delivery Number of Number compliance/statutory submitted reports Date Date of completionof work and performance plan agreements Date of completionof performance annual assessments (PMDS) Date Date of final of submission Annual Programme (To Plan Performance Planning) Strategic 2.1: indicator Performance Performance indicators
64 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e in
the eeds eeds Policy has
gy gy to overcom gy gy to overcom
track - ate ate inalization of the the of inalization Str underperformance Fast procurement process lieu of theimpending MYHDP F required Agreements as the outstanding Housing critical are Plans Sector assessment IDP the for process None Str underperformance Special N been incorporated into Destitute existing the Policy fill to initiated Process vacantfunded posts None - tand
on on on on
nt nt
ons ons i i
at at i i Comme Dev Protracted procurement process of finalization in the Delay Agreements for two(2) ServiceProviders None Comme Dev Development s of a alone Special Needs Policy has been withdrawn Review of Emergency Housing Assistance Policy has been deferred due tocapacity constraints None lanned lanned lanned
rom p rom p f f
4 4 on on i i 201 201 / / at at et to actual actual to et et to actual actual to et i i
rg rg
0 1 1 0 Dev ta achievement for 2013 1 11 Dev ta achievement for 2013
15 2 3 1 Actual achievement 2013/2014 0 28 Actual Actual achievement 2013/2014
013/2014 15 3 4 1 target Planned 2013/2014 1 39 Planned target target Planned 2
39 15 1 Actual achievement 2012/2013 1 Actual Actual achievement 2012/2013 0 0
POLICY PLANNING planning approved of Number municipalities capacitated and with regard supported to Settlements’Human development (housing) A MYHDP/APP MYHDP/APP A October by developed of planned Number human settlement (housing) on based developments and National and IDP’s priorities Provincial approved 2.3: indicator Performance Number of human of human Number settlements policies reviewed passed Number Acts guidelines policy and/or Number of human of human Number settlements policies developed 2.2: indicator Performance
65 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e
gy gy to overcom gy gy to overcom
ate ate Str underperformance None None None Str underperformance None Concurrent exercise on Long termPlanning is being undertaken the by COO. the of office None
on on on on nt nt ons ons
i i
Operations Capital at at
i i Comme Dev None Additional funding was applied for and granted from Budget Additional funding was applied for and granted from Operations Capital Budget Comme Dev None was process Formal undertaken to have the planned output withdrawn None lanned lanned lanned
rom p rom p f f
4 4 on on i i 201 201
/ / at at et to actual actual to et et to actual actual to et i i rg rg
5 4 0 1 0 Dev ta achievement for 2013 None Dev ta achievement for 2013
Actual Actual achievement 2013/2014 2 10 8 1 0 104 Actual Actual achievement 2013/2014
1 1 104 target Planned 2013/2014 2 5 4 Planned target target Planned 2013/2014
- 2 4 - Actual achievement 2012/2013 Actual Actual achievement 2012/2013 1 -
ivelong
RESEARCH PLANNING Number of research of research Number completed papers Number of MoU’s MoU’s of Number with Higher concluded Institutions Learning of research Number approved projects Study 2.4: indicator Performance comprehens developed with of projects Number Feasibility complete Number of Conditional of Conditional Number Plan Business Grant developed of Number term Human(15yrs) Settlement Development Plan 2.3: indicator Performance
66 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
- -
165 179 344 e
R’000 gy gy to overcom
ate (Over)/Under Expenditure Str underperformance None None None
6 9,167 1,376 2,227 4,50 under spending was 1.99%), 1.99%), was spending under
17,276
3
1 /20 2
1 on on 2012/13 ousing R’000 Actual
20 in nt Expenditure ons ( i on H
at i Comme Dev Additional reportsourced externally relative to the Topic Construction Comparative Models The unit through engagement with the OTPmore produced two reports,specifically dealing with HR and SCM None
9,332 1,376 2,227 4,685 17,620
lanned lanned
rom p Final R’000 f
4 Appropriation on i 201
/ at et to actual actual to et i rg
1 2 None Dev ta achievement for 2013
- - - - -
spend 100% of its final budget in in 2013/14 budget final its of 100% spend
R’000
(Over)/Under Expenditure
5 5 31 March Actual Actual achievement 2013/2014
2,615 3,611 2,301 6,308 14,835
14 /20 13 R’000 Actual
20 Expenditure
4 3 31 March Planned target target Planned 2013/2014 2,615 3,611 2,301 6,308 14,835
Final
R’000
Appropriation
31 March Actual Actual achievement 2012/2013 - -
ding
Programme Name Programme NEEDS
- .5: Research Total Sub Administration Policy Planning Date Date of implementation of alternative buil framework technology Changes planned targets to Number of reports on on of reports Number IKM Strategy Implementation Performance indicator Performance on of reports Number construction Housing models comparative 2 as is reflected in the table below.asin table the reflected is Sub-programme expenditure None None budgets Linking performance with programme The targets. indicator its of 60% than more achieved overall programme The
67 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
4.3. Programme 3: HOUSING DEVELOPMENT
Purpose
The purpose of the Programme is to facilitate the provision of integrated sustainable human settlements including the development, capacitation and participation of small and medium enterprise and other vulnerable groups. In addition, it facilitates the provision of subsidy programs and rural housing development. The programme also provides for implementation of housing instruments and fair Rental practices, restructuring and integration of communities through medium density housing and other modalities.
Chief Operations Officer
Facilitates and coordinates the implementation of Housing delivery programmes Ensures coherence of key departmental operations and supports the Head of Department in the achievement of the strategic goals and objectives of the Department
Project Management and Quality Assurance
Manage the implementation of properly planned Human Settlements projects across the Province within an efficient, effective and province-wide quality assurance system
Sub-programmes
ADMINISTRATION o Capacity Building And Municipal Accreditation o Destitute And Vulnerable Groups o Beneficiary Administration
FINANCIAL INTERVENTIONS o Individual Housing Subsidies o Grant Management o Rectification
INCREMENTAL INTERVENTIONS o Chief Operations Office o Project Management And Quality Assurance - Project Planning And Management - Housing Quality Assurance o Informal Settlements Upgrading
SOCIAL AND RENTAL INTERVENTION
RURAL INTERVENTION (EMERGING CONTRACTORS DEVELOPMENT AND EPWP SUPPORT)
Strategic objectives
Administration Provide strategic leadership to the Programme Facilitate the implementation of capacity building programmes and municipal accreditation To enable Destitute and Other Vulnerable Groups to access housing opportunities Policy advocacy and lobbying programme in relation to special programmes Facilitate beneficiary administration process Provide housing consumer education and social facilitation services
68
ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Financial Interventions To administer housing subsidy programmes Managing grant through Housing Subsidy System Facilitate the rectification programme and special projects of the department
Incremental Interventions Provide strategic leadership and administrative support to the Programme and to the Department Ensure coherence in planning, budgeting and implementation Provide Strategic Leadership to the Programme Management of human settlements projects Compliance with Human Settlements building designs, national norms and standards and guidelines Facilitate the upgrading of informal settlements
Social and Rental Interventions Facilitate the provision of affordable rental housing accommodation
Rural Intervention (Emerging Contractor Development and EPWP Support) Support and monitor Extended Public Works Programme Empower small and medium contractors for sustainable business enterprise Creating empowerment opportunities for youth and other vulnerable groups
Strategic objectives, performance indicators, planned targets and actual achievements
The Programme has supported Municipalities towards the attainment of Sustainable Human Settlements through the provision of accredited training to 116 Municipal officials in partnership with NDOH. Furthermore, the Programme has successfully secured Accredited funding (R28 million), enabling the 2 Metros to fast-track human settlements development
In enabling Destitute and other Vulnerable groups to access housing opportunities, the programme has prioritised 1 420 beneficiaries who are considered to be the poorest of the poor
A further 17 588 beneficiaries were approved for human settlements subsidies through the beneficiary administration processes of the Department. This has enabled access to the provision of housing opportunities
As one of the key priority areas within the national driven outcomes, 262 beneficiaries accessed the FLISP subsidies, thereby making a positive impact on the GAP market. The GAP market has been identified as people earning between R3 501 and R15 000, and consequently do not have easy access to mortgage bonds
Eight (8) socio-economic amenities within Informal Settlements are being facilitated for implementation, thereby contributing to the upgrading of Informal Settlements. Informal Settlements Upgrading responds to the creation of Sustainable Human Settlements agenda, whereby people are able to work, live and play within their respective communities
Through implementation of the Extended Public Works Programme, the report provided by the programme indicates that 16 578 Jobs were created through Housing Construction. Of these, 1 772 were for Women, 8 239 for Youth, 6 493 for Males and 74 for People with disabilities. In addition, the programme facilitated the provision of empowerment opportunities for 190 youth. Ultimately, the Department is contributing significantly to the Job Creation strategy of Government
Outcomes 8 targets reported through the Office of the COO indicate that the Department has achieved 80% of the set targets over a 4 year performance cycle from 2010/11 to 2013/14.
69
ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
The submission of a Credible Business Plan was submitted for implementation for the 2014/15 financial year that embraces coherence in planning, budgeting and implementation. Credibility implies that feasibility studies were performed on projects before entering the business plan to ensure their absolute state of readiness for implementation. The intention is to ensure that projects are not blocked during implementation and that the budget allocated to projects is spent accordingly
To ensure compliance with Human Settlements building designs, national norms and standards and guidelines, a Close Out procedure manual was developed, approved and tested on 6 pilot projects. Furthermore, a Service Infrastructure Framework was developed and approved
Towards the provision of Affordable Rental Housing Accommodation, 2 Social Housing Institutions have been accredited. This key deliverable for Outcomes 8 and contributes towards Accelerated Delivery of Housing Opportunities. In addition, 261 Rental Housing disputes were resolved in 90 days, enabling a measure of stability within the Rental Housing space.
Through partnerships with various agencies such as NYDA, SEDA, NHBRC and CIDB, the Department has mobilised volunteers through the Youth Build Programme in Chatty and Port St Johns representing both Rural and Urban Youth
Alternative Building Technology projects have been implemented in the Alfred Ndzo and O.R. Tambo districts. The Nyandeni 190 project in OR Tambo serves as a fully-fledged alternative building technology project, uniquely to the Eastern Cape. As at end of March, the number of houses completed is 118.
The Department has played a prominent role in the KSD Presidential Pilot Project where the following progress has been registered; - Phola Park 1400 sites ISUP: 100% complete gravel roads; 80% complete stand pipes; 70% complete VIPs - Chris Hani and Mandela Park 3300 sites ISUP: 100% complete gravel roads; 80% complete stand pipes; 60% complete targeted 200 VIPs - Ngangelizwe 1850 sites ISUP: 100% complete planning; 65% road rehabilitation and storm-water clearing - Joe Slovo - Planning 100% complete for three new ISUP sites (Project A- 2063; Project B-1795 and Project C - 2642)
The Department has actively participating in the revitalisation of small towns will ailing infrastructure. The following projects are approved for implementation; - Chaguba 300 - Tombo 200 - Mdlankala 200 - Bomvini 200
Of the 110 houses to be constructed in Port St Johns for Destitute persons, 24 have been completed.
The Department has demonstrated significant achievements on key performance markers that serve as a sign of positive momentum toward achieving its mandate;
o 100% of the conditional grant allocation was spent o 60% of expenditure was spent on services and top structures. o 12 187 houses with adequate services was constructed. o Quality of houses provided meeting the minimum norms & standards.
Successes are further noted in a number of key projects highlighted below demonstrating a commitment to strategic priorities of government
o Both Metro’s (NMBM and BCM) and Cacadu performed above 80% of the target with Alfred Nzo close to reaching it.
70
ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
o In Nelson Mandela Bay Metro the Motherwell NU 29, Phase 2 project was successfully completed, with the 988 Storm Damaged project in BCM produced a dramatic turnaround in the last quarter to perform beyond expectations moving towards completion early in the first quarter of 14/15 financial year
o The Departmental strategy to ensure the upliftment of rural areas resulted in the Bomvini rural project receiving the accolade as the rural project of the year in the Eastern Cape.
o The Department has successfully supported the Integrated Residential Development at three projects, 273 Mandela Park and Lotusville in Cacadu and Steynsburg 530 in Joe Gqabi.
o Project 12K, is currently showing the positive movement after pre-project administrative issues has been resolved and produced 2, 927 units.
o Mayfield project in Cacadu has progressed towards completing half of the 1064 housing units allocated to them thus far.
71 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ons i at i v
n de o
nt due todue beneficiaries e
m availability of m o living inscattered areas and non- beneficiaries visitedwhen for verification. 10 DecemberAccountability Day celebrationsuspended in honor ofthe Late Nelson Mandela funeral arrangements The business planforthe year was amended which decreasedthe number of projectsnew thisand subsequently impacted on beneficiary approvals. will beneficiaries In principle, be approved prior to project approvals C None None is This
nned a l
p or f om nt r ctual f
me on to A i
t
eve at e i
rg 312
1 2 Dev ta Achi 2013/2014 None None 461
nt
eveme
ual 588 t
c
2013/2014 100% alignment 1 Provincialcapacity building plan implemented 949 9 17 A Achi
t
e ted rg a
T
d e nn 900 Beneficiaries
a 410 Destitute and
100% alignment of programme plans with and priorities provincial reporting framework 1 Provincialcapacity building plan 1 vulnerable persons provided with housing opportunities accordingto provincial norms and standards days institutional 10 commemora 19 approved Pl 2013/2014
nt
ented ented for beneficiaries and
Military Military Veterans
eveme ual t c
2369 Subsidies allocatedto destitute and vulnerable groups 4 Foster Care homes 10 institutional days commemorated days institutional 10 - Complied with statutory reporting requirements 8 Capacity building programs were implem external stakeholders 159 Subsidies allocated 30 to renovated/purchased A Achi 2012/2013 Feb 15 by completed of APP Review Programme plans aligned with Strategic priorities
s
ve i
ject b o
c i g ate r t Facilitate beneficiary beneficiary Facilitate process administration Policy advocacy and lobbying and lobbying advocacy Policy to relation in programme programmes special of capacity building of capacity municipal and programmes accreditation other and enable Destitute To access to Groups Vulnerable opportunities housing Provide strategic leadership leadership strategic Provide Programme to the implementation the Facilitate PROGRAMME 3: HOUSING DEVELOPMENT HOUSING 3: PROGRAMME S ADMINISTRATION Strategic objectives
72 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ons i at - - i v he National n de o nt e
Social Rental m m o FLISP - units Variousfactors have contributed tothe % 20 deviation and some are unique to each output: None C None in to delays due is Deviation approval of beneficiaries by to due institutions financial their poor credit record None In aligning with t Department of Human Settlementscup of 10% on Rectificationthe expenditure the affecting restricted was targets the to implantation thereby limitingthe Actual
nned a l
p or
f
om nt r ctual f
me on to A i t
eve at e i
rg 68 20% deviation None Dev ta Achi 2013/2014 None 1 None 20% deviation
– –
nt
tion of the the of tion
eveme 082
8 New projects8 New supported 2013/14 financial years. 80% of targets have been achieved sincethe introduc programme. was plan Business Credible submittedfor implementation in 2014/15financial year. that implies Credibility feasibilitystudies for project entering the business plan 1 100% Management of HSDG 80%targets achievedsince 8 Outcomes of introduction Outcomes targets8 forthe financial year 13/14 respond 4 a of achievement the to year performancecycle which covers period a of 2010/11 Actual Actual Achi 2013/2014
upported aries assisted et et
rg
ed Ta nned 250 Benefici Outcome if attainment 00% Credible operations and Business Plan approved and implemented 8 New projects s projects New 8 through housingconsumer education social and facilitation programme 1 through humansettlements subsidy programmes 100% Management of HSDG Attainment of year on year outcomes delivery 8 targets 1 8 targets Pla 2013/2014
nt
eveme
Operations and Business Plan Plan Business and Operations approved and implemented - Review ifAPP completed by 31 March DepartmentalStrategy Incorporating National,Provincial, Strategicand priorities ensured Actual Actual Achi 2012/2013 - 385 IndividualSubsidies approved and properties transferred Reporting Frameworks aligned 5 Strategic engagements held with external Stakeholders
support to support s ve i
ject
b o c i g ate r t the Programme and and Programme the Department in Ensure coherence and budgeting planning, implementation INCREMENTAL INTERVENTIONS leadership Strategic Provide and administrative Facilitate the rectification rectification the Facilitate special and programme department of the projects FINANCIAL INTERVENTIONS housing administer To programmes subsidy through grant Managing System Subsidy Housing Provide housing consumer consumer housing Provide social and education facilitation services PROGRAMME 3: HOUSING DEVELOPMENT HOUSING 3: PROGRAMME S
73 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ons i An - - at i ; ; v - Awaiting - Awaiting n de o nt e
m m o None None Implementation of targeted projects delayed tothedue following reasons ConnemaraVillage investigation is underway. East IDZLondon outcome of accreditation application from SHRA C None None
nned a l
p or f om nt r ctual f
me on to A i t
eve at e i
rg None None 499 Dev ta Achi 2013/2014 None None
nt performed
eveme
have have been of state their on focusing at aims This readiness. ensuring that projects are not blocked during implementation. 100% alignment of Departments Business Plan to the national and provincial the provincial within priorities framework and identified instrument. 100% of the projects implemented within the programme was ratified and implemented under the prescriptsthe of Housing Code. Houses 100%complianceare with NHBRC buildingmanual. 18 78 affordable rental accommodation provided Actual Actual Achi 2013/2014
412 affordable et et
rg
ed Ta nned tandards set theon Housing Code and prescripts 100% alignment of programme plans with and priorities provincial reporting framework 100% AdheretoProject Management Manual, norms & s 100%compliance with Human Settlements building, designs national norms & standards 18 Informal Settlements projectssupported towards BNGconformity 1 of Provision rental accommodation Pla 2013/2014
ome
2014 priorities Airstrip Port and St - -
nt
eveme Adhered fullytoProject Management Manual Council resolutions obtained for 2 Projects (Molteno Johns) 475 housing units constructed 8 and MTSF 2009 90% of the housing projects implemented during the financial year 78%turnaround time for inspections Actual Actual Achi 2012/2013 ProgrammePlans alignedto Outc Reporting prescripts adhered to
ts s ve
i
ion ject b o c i g ate r t SOCIAL RENTAL AND INTERVENTION of provision Facilitate housing rental affordable accommodat Compliance with Human with Human Compliance designs, building Settlements standards and norms national and guidelines of upgrading the Facilitate informal settlemen Management of Human Human of Management Settlements projects PROJECTMANAGEMENT QUALITY AND ASSURANCE leadership Strategic Provide programme to the PROGRAMME 3: HOUSING DEVELOPMENT HOUSING 3: PROGRAMME S
74 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
out - - ons i at i track v - key ollowing ollowing -
ion. Multi ion.
578 jobs
n de
o 74 - 1 772 8 239 nt e – – 6 493 m m o Male - Male Youth A total of 16 of total A created in thef categories; - Women The Department revised its approach by introducing and appointing turn contractors into order increase outputs.delivery This impacted the rollon of the incubator programme. Positive deviat stakeholder participation and collaboration with social our partners (suchSEDA & as NYDA) resultedin the over performance. C Inadequate reporting compliance contractors. by In the last quarter ofthe year the Department embarked fast to drive a on performance and expenditure. Disabled
nned a l
p or f om nt r ctual f
me on to A i t eve at e i
rg
4 90 Dev ta Achi 2013/2014 1
nt
eveme
3 16 190 Actual Actual Achi 2013/2014
et et rg
ed Ta nned
4 reportssubmitted 20 100 Pla 2013/2014
nt
jobs created as per the reports eveme 083
- 269 Emerging Contractors registered in database (Mentorship database) Actual Actual Achi 2012/2013 4 Reports generated on created jobs (EPWP Phase 2) 28
s ve i ject b o c i g ate r t
Creating empowerment empowerment Creating and for youth opportunities groups vulnerable other Empower small and medium medium and small Empower for sustainable contractors enterprise business RURAL RURAL INTERVENTION (EMERGING CONTRACTOR DEVELOPMENT EPWPAND SUPPORT) monitor and Support Works Public Extended Programme PROGRAMME 3: HOUSING DEVELOPMENT HOUSING 3: PROGRAMME S
75 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e gy gy to overcom
ate ne None None Str underperformance None No None
on on
nt ons i
at i None None Comme Dev Positive deviation is due to functional internal processes Internal arrangement to extend the deadline Date forBranch Moderation extended as an internal Departmental arrangement lanned lanned
rom p
f
4
on i 201
/ at et to actual actual to et i 1 Month 3 Months
rg - - 8 days ta achievement for 2013 +/ 1 +/ None None Dev
ports; 1 x
2013/2014 23 Dec 2013 3 May 06 Aug 2013 12 Monthly x IYM reports; 12 DORA x reports; 4 x Quarterly re Annual Report; 1 Halfx yearly; 4 Actual Actual achievement
2013/2014 10 Feb 15 April 30 April 12 Monthly x IYM reports; 12 DORA x reports; 4 x Quarterly reports; 1 x Annual Report; 1 Halfx yearly; 4 Planned target target Planned
eports;
30 April 30 May r IYM Monthly x 12 12 DORA x reports; 4 x Quarterly reports; 1 x Annual Report; 1 Halfx yearly; - Actual Actual achievement 2012/2013 15 Feb
ADMINISTRATION
egicPlanning)
Number of reports on on of reports Number Management Strategic of RiskInternal and enhance Control to service delivery annual performance performance annual assessments (PMDS) of Number compliance/statutory submitted reports of Programme Annual of Annual Programme (To Plan Performance Strat Date of completionof work and performance plan agreements Date of completionof 3.1 indicator Performance Date of final submission Performance indicators 3.1 ADMINISTRATION
76 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e gy gy to overcom
ate None None None None Str underperformance None None None
attributedto attributedto
on on
nt
ons i ct workers
at i appointment of ditional request from to Kouga & KSD. Continuoussupport provided to the Metros 2 is excess The collaboration with Regional offices and the appointment ofcontract workers is excess The the contra None Comme Dev 12 Inspectors were provided with Accredited training managementon of CostLow & Housing 104 officials on Introductionto costLow housing. Ad Municipalities responded to madeand possible through support received from NDOHS. Conductedcapacity OR of assessment Tambo,Port StJohns & Matatiele.Provided feedback on assessment lanned lanned
rom p f
4 on i
201
/ at et to actual actual to et i
rg
None None 5 None 2 2 299 29 Dev ta achievement for 2013
4 1 13 31 March 4 12 299 179 Actual Actual achievement 2013/2014
4 1 Metros) 2 & DMs (6 8 31 March 2 10 000 150 Planned target target Planned 2013/2014
31 March 4 8
1 1 733 4 15 580 Actual Actual achievement 2012/2013
lan. lan. acity acity
p
ce indicator
CAPACITY CAPACITY BUILDINGMUNICIPAL AND ACCREDITATION ccreditation
Number of functional of functional Number Project Steering Committees established the on of reports Number the of implementation capacity municipality plan building reports of 2 the accredited Metros of capacitated Number human settlements consumers Date Date of implementationof provincial the a of performance Number Number of capacitated of capacitated Number external stakeholders Number of approved of approved Number Cap Provincial 3.1.1: Performan Plan Building
77 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e
gy gy to overcom
trackimplementation. - ate Bothinternal and external stakeholders toengaged fast None Str underperformance of verification track Fast beneficiaries and of implementation destitute projects. none The Department is in the process of finalizing the agreement which will address issues of top up funding for implementationthe of programme
tary when when
generally
on on nt ons delivery is as a i - at n scatteredn areas and agreement between i i epartment of Mili of epartment eneficiaries eneficiaries Under of state of result readinessin respect of the foster care projects. 10 December Accountability Day celebrationsuspended in honour of the Late Nelson Mandela funeral arrangements Comme Dev B live are not available visitedfor verification. The Destitute Progarmme has been lifted as Policya Priority The Department of Human Settlements and D Veterans for implementationthe of programme has not been finalised lanned lanned
rom p f
4 on i 201 / at et to actual actual to et i
rg 20 461 2 148 9 1 Dev ta achievement for 2013
949 1420 52 1 9 Actual Actual achievement 2013/2014
1410 1200 200 10 10 Planned target target Planned 2013/2014
69 ctual achievement
10 30 4 A 2012/2013 - 23
DESTITUTE AND VULNERABLE GROUPS VULNERABLE AND DESTITUTE :
Number of submissions of submissions Number for PACOM made to homes Care Foster of Number days institutionalized commemorated Number of subsidy of subsidy Number military for applications to conforming veterans checklist the opportunities of subsidy Number for destitute application groups and vulnerable the to conform that checklist Number of destitute and and of destitute Number people vulnerable housing accessing 3.1.2 indicator Performance
78 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
nel nel e e
ction of of ction
trackedin -
track completion completion track
- gy gy to overcom -planning activities activities -planning iciaries’ poor credit credit poor iciaries’
egy ategy to overcom ate ppointment of person Str underperformance Clearance of benef records the by National Credit Bureau To fast of pre houses None Str underperformance beneficiaries In principle will be approved prior to project approval A will be fast 2014/15 None on theKat berg project to enable constru
impacted on
on on on on planning stage - nt nt ons ons i i
at at newly establishednewly i i he business planforthe Comme Dev Deviation is todue delays in approval of financial by beneficiaries poor to due institutions credit record Katberg 233 still units under pre None Comme Dev T year was amended which decreasedthe number of projectsnew thisand subsequently beneficiary approvals Beneficiary Administration is a Directorate, and as yet is staffed fully not None lanned lanned lanned
rom p rom p f f
actual actual 4 4
on on i i 201 201 t to
/ / at at e et to actual actual to et i i
rg rg 68 None 2312 10 None Dev ta achievement for 2013 1 1 Dev ta achievement for 2013 ment
588
082
5 17 10 8 Actual achievement 2013/2014 1 5 Actual Actual achieve 2013/2014
250
5 19 900 20 8 target Planned 2013/2014 1 6 Planned target target Planned 2013/2014
- - - Actual achievement 2012/2013 Actual Actual achievement 2012/2013 - -
INDIVIDUAL HOUSING SUBSIDIES BENEFICIARY BENEFICIARY ADMINISTRATION
ANCIAL INTERVENTIONS ANCIAL FIN
Number of EPHP EPHP of Number supported projects Number of EPHP project project EPHP of Number prepared submissions 3.2.1 indicator Performance of beneficiaries Number through assisted Human Settlements programmes Subsidy supported through through supported consumer housing social and education programmes facilitation Number of Number Municipalities assisted with beneficiary administration projects of new Number Number of beneficiaries of beneficiaries Number approved 3.1.3 3.1.3 indicator Performance 3.2
79 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e
itize mand. gy gy to overcom
ate egy ategy to overcom permanent solutions Relaxation ofthe National Credit Act continuousand marketing of theFLISP programme to attract marketopen and generate de Str underperformance None None Str underperformance None The Department will continueto prior None None
to a a to
s
on on on on nt nt ons ons i i
at at i i 238 deviation is todue delays in approval of financial by beneficiaries their to due institutions poor credit record Comme Dev None None Comme Dev Departmental toresponse the increased demand shifted has focus The from provision of temporary shelter focus on permanent sustainable a as solutions intervention None None lanned lanned lanned
nt for for nt rom p rom p f f
actual actual 4 4
on on i i 201 201 t to
/ / at at et to actual actual to et e i i
rg rg None None 18 948 None None 238 Dev ta achieveme 2013 Dev ta achievement for 2013
52 16 17 268 268 5 1 4 262 Actual achievement 2013/2014 Actual Actual achievement 2013/2014
500
16 17 250 1 1 4 500 target Planned 2013/2014 Planned target target Planned 2013/2014
017
Actual Actual achievement 2012/2013 16 12 1130 1 5 Actual Actual achievement 2012/2013 385 1
ster
INDIVIDUAL HOUSING SUBSIDIES
GRANT MANAGEMENT GRANT
Number of HSS reports reports of HSS Number generated Performance indicator Performance and of DORA Number reports Quarterly 3.2.2 for permanent solution solution for permanent to policy complying of reports Number EPHP on produced project implementation of beneficiaries Number assistedwith FLISP applications Number of disa Number affected beneficiaries / assisted households with temporary solutions of submissions Number Number of instructions instructions of Number conveyancers issued to of for transfer properties 3.2.1 indicator Performance
80 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e
beneficiaries beneficiaries
gy gy to overcom and awaiting for their for their and awaiting houses. Some relocated been have Contract has been been has Contract with the made contractors. ate
- - The department has has department The communicated to Human National Accounting Settlements for consideration Officer over 10% to implement 3 of years. period the Reports will will be Reports authorisedwithin a days of 30 period reporting the following quarter of monitoring Proper will b operations the ensure to strengthened are operations that completedwith set time frames. Str underperformance in not is department The to comply a position with 10% following: to the Due
ere ere itted % due % to in time. in time.
d d on on
nt on i at complete completed i not not Due to administration to administration Due w reports the delays to administration Due w reports the delays Comme Dev was target The exceeded13 by have that project these multiple year, projects was comm appointment of by the to prior contractors mandatory cap of 10%. lanned lanned rom p f
or on f i 2014 t / at
e i % rg
3 4 Dev ta 2013 13
%
2 0 Actual Actual achievement 2013/2014 23
5 4 Planned target target Planned 2013/2014 10%
- - Actual Actual achievement 2012/2013 -
RECTIFICATION
3.2.3 Number of reports on on of reports Number Projects Special Number of reports on on of reports Number rectification performance indicator indicator performance conditional 10% Manage allocation grant Programme Programme
81 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e
planning planning gy gy to overcom
ate None None None Str underperformance Submission will madebe in accordance theset with timeframes. The alignment process has completedbeen Improve processes for 2014/15 FY
2014.
to conclude during the Branch
Project Project on on due to the June
postponed due to nt . ons ment ment of aft APP for the the for APP aft i
at i Quarter
rd separation of COOs from Office Management Quality and Assurance theduring first quarter. This resulted in the revision ofthe COOs workplan agreement. 3 HRD circular circular HRD assess month None None Comme Dev Dr The programme was in place but submission delayed to takeinto theaccount outcomesthe of DepartmentalStrategic Plan Consolidation Session Target date was not achieved reviews competingservice priorities delivery lanned lanned
rom p f
4
on i 201
/ at et to actual actual to et i days
rg months
None 2013 13 3 session 1 review None Dev ta achievement for
1 x 1 Halfx yearly; 4 28 Feb 1 June 2013 session 3 review June 2014 12 Monthly x IYM reports; 12 DORA x reports; 4 x Quarterly reports; 1 Annualx Report; Actual Actual achievement 2013/2014
1 x 1 Halfx yearly; 4 15 Feb 31 March sessions review 4 31 May 12 Monthly x IYM reports; 12 DORA x reports; 4 x Quarterly reports; 1 Annualx Report; Planned target target Planned 2013/2014
ADMINISTRATION
thly IYM reports; reports; IYM thly
15 August 12 Mon x 12 DORA x reports; 4 x Quarterly reports; 1 Annualx Report; 1 Halfx yearly; - Not achieved Actual Actual achievement 2012/2013 31 March
CHIEF OPERATIONS OFFICE OPERATIONS CHIEF
service delivery Number of Number compliance/statutory submitted reports on of reports Number Management Strategic of RiskInternal and enhance Control to Date Date of completionof performance annual assessments (PMDS) Date Date of completionof work and performance plan agreements and Performance No. of Review Sessions Performance indicator Performance Date of final submission of Annual Programme (To Plan Performance Planning) Strategic 3.3 INTERVENTIONS INCREMENTAL 3.3.1
82 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e
process
gy gy to overcom gy to overcom
grammes and FLISP. ate ate underperformance underperformance Submission will madebe in accordance theset with timeframes. The alignment has completedbeen Str underperformance Provide targetedsupport to Programme for4 in blockages unlocking Social/Rental Pro None Str
- - OO’s agreement.
on on on Project Project nt nt ons ons i i rmance
Social Rental at at Draft APP for the the for APP Draft i i
FLISP - Dev The programme was in place but submission delayed to takeinto theaccount outcomesthe of DepartmentalStrategic Plan Consolidation Session. Target date was not achieved due to the separation of C from office Management Quality and Assurance theduring first quarter. This resulted in of COO’s the revision Perfo Comme Dev Variousfactors have contributed tothe % 20 deviation and some are unique to each output: None Comme lanned lanned lanned
rom p rom p f f
4
on on i i 4 2014 201 / at at et to actual actual to et et to actual actual to et i i 1(1/2)months
rg rg -
20% deviation - Dev ta achievement for 2013/ 13 days +/ Dev ta achievement for 2013
80% of Outcomes 8 target achieved 31 March Actual achievement 2013/2014 28 Feb 1 June 2013 Actual Actual achievement 2013/2014
lanned target target lanned Outcome targets8 achieved 31 March P 2013/2014 10 Feb 15 April Planned target target Planned 2013/2014 ADMINISTRATION
31 March 15 Feb Actual achievement 2012/2013 15 Feb Actual Actual achievement 2012/2013 -
PROJECTMANAGEMENT AND QUALITY ASSURANCE ADMINISTRATION CHIEF OPERATIONS OFFICE OPERATIONS CHIEF
3.2.4 Date Date of completionof work and performance plan agreements Date Date of final submission of Annual Programme (To Plan Performance Planning) Strategic Performance indicator Performance Approved business plan plan business Approved inplace Attainment of outcome of outcome Attainment 8 targets 3.3.1 indicator Performance
83 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e
gy gy to overcom ate ssessments will be
Str underperformance A coordinated in the 2014/15 financial to year ensure the agreed deadline met. are were were
on on nt ons i the the book of deployed and
at i None Comme Dev Departmental officials were the finalise to mandated year end balances to close accounts for 2013/14 following Period, Financial which, service delivery imperatives Regions within prioritized None lanned lanned
rom p f
on i 4 2014
at et to actual actual to et i rg 4 months4 None None Dev ta achievement for 2013/
eports;
4 September r IYM Monthly x 12 12 DORA x reports; 4 x Quarterly reports; 1 Annualx Report 4 Actual Actual achievement 2013/2014
lanned target target lanned
30 April 12 Monthly x IYM reports; 12 DORA x reports; 4 x Quarterly reports; 1 Annualx Report; 1 Halfx yearly; 4 P 2013/2014
12 x 12 Monthly x IYM reports; 12 DORA x reports; 4 x Quarterly reports; - Actual Actual achievement 2012/2013 30 July 1 Annualx Report; 1 Halfx yearly;
utory utory PROJECTMANAGEMENT AND QUALITY ASSURANCE ADMINISTRATION
3.2.4 service delivery Number of Number compliance/stat on of reports Number Management Strategic of RiskInternal and enhance Control to reports submitted submitted reports Date Date of completionof performance annual assessments (PMDS) Performance indicator Performance
84 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
– 4 4 – has a huge huge has a
e m o -planning -planning c r planning and
e performing - pre-
o ov t
y
g ate r t administrative issues. The department has also implemented projects turnkeyon approach in were the previous financial year on excess of 7000 which will be implemented in the regions impact on departmental performance. To reduce the delay in appointmentcontractors of the department intheis process of implementing speciala purpose delivery vehicle the where pre admin and procurement process will reduce delay in appointing new contractors. task facilitation pipeline project The has been establishedtofast track and resolve S underperformance The Programme categorized all projectsfrom category 1 Category 1, LOA and Contract issued Category 2 only LOA issue Category 3 within Procurement Category 4 at pre The department will terminate all poor and non contractors The replacement of poor and non performing contractors Regions only used Category 1 projectsfor the business plan
for 001
2 663 4 milestones4 planning planning and n
rtments, rtments, -
o e ion of housing Units Units housing of ion nt ons e units units are broken down i
m at i m o onstruct roject pr oor oor performance of 8 312 Wallplates: 1 557 Roof: into the following following into the milestones: 2 Foundations: Project readiness and administrationis one of the major hinders in delivery and impacts on deliveringthe desired output. Lack of integrated planning between the Department, sector depa
P administration; municipalities, privatesector C Dev C comprises of namely, Foundations, Wallplates, Roof and Finishes. 091 2 Finishes: P contractors t to e rom rg f
4 ta on i
201 / at i
6 713 Dev planned actual achievement for 2013
12 187 Actual Actual achievement 2013/2014
18 900 Planned target target Planned 2013/2014
Actual Actual achievement 2012/2013 11865
ed in the in the ed indicator
PROJECT PLANNING MANAGEMENTAND
province across all all across province programmes housing province the by utilized Number of new housing housing of new Number units complet 3.2.4.1 Performance
85 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
. -
e m o
c owned land owned will be r - planning and - e o ov
challenges and deal with t
y g department has taken a
ate r rminate contracts where t The department is enforcing beneficiarycorruption related practices, eg. Right beneficiary to bulk infrastructure task facilitation pipeline project The has been establishedtofast track and resolve pre administrative issues. - contractualterms on non performing contractors and te applicable. The department has taken a decision to implement a unblocking will that Strategy Services of unblock projects due to the lack of S underperformance Release of state pursued as strategica intervention Municipalities are being supported Continued beneficiarymanagement interventionstocomplement the municipal Right House Campaign The decision to implement a unblocking will that Strategy Services of unblock projects due to the lack of
and
;
n
o usemanagement usemanagement - - nt ons e i owned land. owned owned land. owned m - - at i m o Poor beneficiarymanagement an initiation in the implementation of projects. new projects.new Poor land Poor land municipalities in practices invasion land to leading increased of number Informal Settlements Lack of integrated planning between the Department, sector departments, municipalities, privatesector and donor institutions. Unavailability of suitable and including located land, well the delays inthe release of state C Dev and donor institutions. Unavailability of suitable and including located land, well the delays inthe release of state Beneficiary Administration process delays Inadequate bulk infrastructure Inadequate and decaying bulk infrastructureinsecondary and smalltowns for unlocking Inadequate and decaying bulk infrastructureinsecondary and smalltowns for unlocking projects.new t to e rom rg f
4 ta on i
201 / at i
5 545 Dev planned actual achievement for 2013
11 720 Actual Actual achievement 2013/2014
17 265 Planned target target Planned 2013/2014
10600 Actual Actual achievement 2012/2013
indicator
PROJECT PLANNING MANAGEMENTAND
Number of sites serviced 3.2.4.1 Performance
86 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
- e planning and - m o c r e o ov
t
y
g mented projects turnkeyon ate r sk has been established tofast t The department tois enforce The project pipeline facilitation facilitation pipeline project The See above Close out process will fastbe tracked across identified projects in 2014/15. S underperformance bulk infrastructure which delay the provision of services. The department has also imple approach in were the previous financial year on excess of 7000 which will be implemented in the regions ta track and resolve pre administrative issues. - contractualterms on non performing contractors and terminate contracts where applicable. not
and
a Close
ed planning planning ed
land. n
o
number number of Informal usemanagement
- nt ons e i owned owned m - at i m o increased Settlements state See above Themandatory cap of 10% has been introduced by National on rectification however the department reached the targetdesired due to project administration bottlenecks anticipation in set was Target of project readiness forclose out (identificationthrough project 786) However, the component was taskedto develop OutProcedure Manual to C Dev Poor land municipalities in practices invasion land to leading Lack of integrat between the Department, sector departments, municipalities, privatesector and donor institutions. Unavailability of suitable and including located land, well the delays inthe release of t to e rom rg f
4 ta on i 201 / at
i
627 60 627 - 454 Dev planned actual achievement for 2013
657
0 2 1 852 5 007 Actual Actual achievement 2013/2014
284 225 461
60 3 1 5 Planned target target Planned 2013/2014
359
5 0 - - Actual Actual achievement 2012/2013
indicator
PROJECT PLANNING MANAGEMENTAND
Number of historical of historical Number closed projects Number of households of households Number basic to connected services as partof ISU the programme of defective Number [Post rectified houses 1994] Number of new sites sites of new Number water basic to connected and sanitation as partof programme IRDP the 3.2.4.1 Performance
87 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e m o te of readiness c r e o ov t
y g ate r t S underperformance sta of Assessment of projects to be determined and administrative issues resolved through Municipalities.
issues by by issues ire resolution resolution ire
n
o
nt
ons e i -planning -planning m at i Close Procedure Out manual developed and approved by the MEC 6 Projects approved by PACom as pilot projects m o
municipalities. C Dev standardize the Close Out process in was target set The from requests of anticipation Regions. Consequently, projects16 were assessed for unblocking. 6 projects requ of pre 1. 2. t to e rom rg f
4 ta on i 201 / at i
18 Dev planned actual achievement for 2013
0 Actual Actual achievement 2013/2014
18 Planned target target Planned 2013/2014
- Actual Actual achievement 2012/2013
indicator
PROJECT PLANNING MANAGEMENTAND
Number of blocked of blocked Number unblocked projects 3.2.4.1 Performance
88 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e gy gy to overcom
ate Str underperformance None None gy gy to overcom
ate
underperformance underperformance None None None Str
on on nt ons nal nal report provided i
on on at
nt
ons evi i Comme D Additio in response to a request Additional request for projects assessments received and responded to
at evi D One project (Umzimvubu) was added on the list taken and through initiation process None None Comme
lanned lanned
rom p f
t to 4 e on rom i rg f
201 / 4 at ta et to actual actual to et i on i rg
201
/ at 1 8 Dev ta achievement for 2013 i
Dev planned actual achievement for 2013 1 None None
5 18 Actual Actual achievement 2013/2014
Actual Actual achievement 2013/2014 5 18 8
4 10 Planned target target Planned 2013/2014
Planned target target Planned 2013/2014 4 18 8
l achievement
Actual Actual achievement 2012/2013 - - 12 3 Actua 2012/2013 2
- nities , quality , quality
INFORMAL SETTLEMENTS UPGRADING SETTLEMENTS INFORMAL HOUSING QUALITY ASSURANCE QUALITY HOUSING owards BNG BNG owards
conformity conformity Socio of Number Economic Ame and implementation settlements projects initiated t conformity of existing Number informal settlements supported projects BNG towards projects and greening planning for facilitated 3.3.3 indicator Performance informal of Number assurance, norms & & norms assurance, and standards guidelines of projects Number assessed for quality standards Number of technical assessment reports on construction 3.3.2.2 indicator Performance
89 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e
A
- gy gy to overcom
ate The MEC has approved of construction for funding units inIntsika Yethu Local Municipality. the of Appointment Evaluation Technical Committeefor Expression of Interest is underway The Department focus its effortsmeetingtowards the 90 turnaround day time and continuously monitor its performance Str underperformance ConnemaraVillage for project viable replacement soughtis Housing Social other from Vlei- Parsons Institutions. Accreditation of NUMSA investmentcompany is facilitated and an implementationtask team has been established None
have have e Thabo e
cases cases
Out of of Out
on on Connemara are e following e following nt ; ; ons i at - Awaiting outcome of of outcome - Awaiting Cases evi impacted theon turnaround time Village- An investigation is is An investigation Village- underway. East London IDZ accreditation application fromSHRA Construction in th in Construction in Project CRU Mbeki Intsika Yethu Local could not Municipality commencein the current financial year due to delays in procurement and funding approval. 4. Jurisdiction of of ee Degr complexity remaining 101 Comme D Implementation of targeted projects delayed due toth reasons No planned output forthe 2013/14 FY lanned lanned
rom p f
4 on ses i 201 / at ca et to actual actual to et i
rg 0% deviation 2013 499 0 100 4 105 Dev ta achievement for
ievement
%cases resolvedwere
78 0 0 60 within 90 days 156/261 Actual ach Actual 2013/2014
1412 0 100 90 Planned target target Planned 2013/2014
90 0 - Actual Actual achievement 2012/2013 475
SOCIAL RENTAL AND INTERVENTION Turnaround time for time Turnaround rental of resolution (days) disputes Number of CRU project project of CRU Number approved units of CRU Number completed Performance indicator Performance of social Number units housing completed 3.4 3.4 INTERVENTION RENTAL AND SOCIAL 3.4:
90 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e
track track track track - - - - gy gy to overcom
ate order order tofast Department is reviewing the incubator programme in Department is reviewing the incubator programme in order tofast empowerment of emerging contractors. Department is reviewing the incubator programme in order tofast empowerment of Str underperformance Department is reviewing the incubator programme in order tofast empowerment of emerging contractors. None empowerment of emerging contractors. - - -
- vised key key key key - - - - on the rollon
on on nt ons i at evi out of theincubator The Department revised its approach by introducing and appointing turn contractors into order increase outputs.delivery This impacted the rollon out of theincubator programme. The Department revised its approach by introducing and appointing turn contractors into order increase outputs.delivery impacted This programme. The Department re its approach by introducing and appointing turn Comme D The Department revised its approach by introducing and appointing turn contractors in order to increase outputs.delivery This impacted the rollon out of theincubator programme. Multi deviation. Positive participation stakeholder and collaboration with our social partners (such as SEDA & NYDA) resulted in the over performance. lanned lanned
rom p f
4 on i 201 / at et to actual actual to et i
13 rg
16 20 4 90 4 52 Dev ta achievement for
14 16 190 16 48 Actual Actual achievement 2013/2014
30 20 100 20 100 Planned target target Planned 2013/2014
69 - - 104 Actual Actual achievement 2012/2013 -
gramme
contractors graduating graduating contractors Incubator the within programme Number of emerging of emerging Number Number of contractors of contractors Number units housing allocated empowerment created opportunities and other for the youth groups vulnerable of emerging Number for enrolled contractors pro incubator Number of Number Performance indicator Performance and Small of Number contractors Medium the through empowered programme incubator 3.5 3.5 DEVELOPMENT CONTRACTOR (EMERGING EPWP SUPPORT)INTERVENTION AND RURAL 3.5 RURAL INTERVENTION (EMERGING CONTRACTORS DEVELOPMENT EPWPAND SUPPORT)
91 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
t e
gy gy to overcom track engagemen rging contractors.rging - ate Str underperformance eme Fast process strategic with partners. Workshops will be held with contractors to enforcecompliance -
ntation of austerity measuresntation austerity of track
-
on on rred at various stages of construction stages of as at rred various nt ons i at evi expenditure. Comme D contractors into order increase outputs.delivery This impacted the rollon out of theincubator programme. Training ofthe designated groups is undertaken in partnership with strategic partners.The process of engagement took longer than envisaged. Inadequate reporting compliance by contractors.Inthe last quarter ofthe year the Department embarked on a drive tofast performance and lanned lanned
rom p f
4 on i 201 / at et to actual actual to et i
13 rg
10 1 Dev ta achievement for 20
90 3 Actual Actual achievement 2013/2014 1 finishes. 09
100 4 Planned target target Planned 2013/2014 663 roofsand 2 roofsand 663
557 wall plate, 2 plate, wall 557
4 Actual Actual achievement 2012/2013 -
001 foundations, 1 foundations, 001
Changes planned targets: to below. table the in reflected is as 12.01%), it was 2012/13 ( 2013/14 for 0.03% of spending under incurred incu are costs considerable consequently, and Department, the of leg implementation the be to considered is 3 Programme for created value able is demonstrate to Department the units, completed as reported 187houses 12 the above and Over activities. planning pre asrelated well 2 None None budgets Linking performance with The programme overall achieved more than 44 % of its indicator targets. The programme did not overspend, but through impleme through but overspend, not did programme The targets. indicator its of % 44 than more achieved overall programme The
Number of reports on on of reports Number through created jobs EPWP the Number of youth, of Number youth, with people and women trained disabilities 3.5 RURAL INTERVENTION (EMERGING CONTRACTORS DEVELOPMENT EPWPAND SUPPORT) indicator Performance
92 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
- -
20 13 219,272 291,305
R’000 (Over)/UnderExpenditure
2,192 4,347 5,581 4,709
2,118,071 2,134,900 2012/2013 R’000 Actual Expenditure
2,212 4,347 5,581 4,722
2,409,343 2,426,205 Final R’000 Appropriation
- - - - 872 872
R’000 Expenditure (Over)/Under
7
4,139 45,41
972,374 472,073
1,197,550 2,691,523 2013/2014 R’000 Actual Expenditure
4,139 45,417 973,246 472,073
1,197,550 2,692,935 ’000 Final R
Appropriation
Intervention
Sub-programme expenditure Programme Name
- Total Financial Interventions Financial IncrementalInterventions Rent & Social Rural Intervention Sub Administration
93 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
4.4. Programme 4: HOUSING ASSET MANAGEMENT
Purpose
Promote homeownership through Extended Discount Benefit Scheme (EEDBS) Maintain the remaining state rental housing stock Provide for implementation of fair rental practices Acquisition of suitable located land for the development of sustainable integrated human settlements To provide land tenure and facilitate the release of land to municipalities Provide for restructuring and integration of communities through medium density housing
Sub-programmes
ADMINISTRATION SALE AND TRANSFER OF HOUSING PROPERTIES ENHANCED EXTENDED DISCOUNT BENEFIT SCHEME DEVOLUTION OF HOUSING PROPERTIES HOUSING PROPERTIES MAINTENANCE
Strategic objectives
Provide Strategic leadership to the Programme Management of rental housing stock Facilitate the transfer of pre-1994 housing stock Release and acquisition of land for human settlement development Management of the remaining 1179 housing stock
Strategic objectives, performance indicators, planned targets and actual achievements
Rental revenue collected from the 400 rental stock exceeded the planned target of R1 million by R 13 804. This achievement is largely due to arrear rental payments made in anticipation of the Department’s transfer of sectional title units to occupants.
The release and acquisition of land for Human Settlements Development is one of the key priority areas in the nationally driven Outcomes 8. In this regard, the Department acquired 192 ha of land parcels mainly for Informal Settlements Upgrading projects, Social Rental Accommodation and mixed mode development projects.
From the remaining 1179 housing stock, 411 were maintained as these represent the sum of residential units within the total housing stock units
Of the targeted 750 Pre-1994 housing stock, 630 units were transferred to qualifying beneficiaries. This is considered to be a significant achievement in the light of inherent capacity challenges within affected Municipalities.
10 949 Title deeds were transferred against a target of 6 000. This achievement is the result of a new strategy to fast track issuing of title deeds which included the signing of a memorandum of understanding between the Department and Local Municipalities
94 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
y y he department.he
n
o nt ups by t off on Februar 26 ons e – i
m at i m o ev The concerted effort to assist assist to effort concerted The themunicipalities by performing beneficiary administration their on behalf was successful but there was little progress at the municipalities they when had to perform their part which could not be delegated to the department i.e. the signing of Deeds of Sales, to carry the process toforward effect a transfer, even after numerous follow The targetset was not achieved due to budgetary constraints. valueThe of the land parcels that were acquiredmore was than the initially budgeted amount and this leftthe Department with C D DraftAPP submitted was on 14 November 2013 and submittedforcompliance and quality check, but was only signed- None 2014. ned n a l
rom p
f 4
on i 201
t to actual actual to t
/ at i e
rg 120 80ha Dev ta achievementfor 2013 3 Months None
192ha 14 November 2013 400 rentalstock managed 630 Actual achievement 2013/2014 94
-
272 ha acquired 100% alignment of programme pIans with and priorities provincial reporting framework Manage 400 rental stock Transfer Preof 750 housingstock Planned target 2013/2014
l; Provincial) Provincial) l;
106,0061 hectares procured prescripts (Nationa prescripts Rand value of revenue collected R1,369,686.24 451 housingstock transferred to qualifying beneficiaries Actual achievement 2012/2013 APP by reviewed 15 Feb ProgrammePlans aligned with priorities provincial Compliance with reporting 1994 -
er of pre er of
formance indicator formance DEVOLUTION OF HOUSING PROPERTIES OF HOUSING DEVOLUTION Release and acquisition landof for human settlement development SALES TRANSFERAND OF HOUSINGPROPERTIES housing rental of Management stock ENHANCED EXTENDED BENEFITDISCOUNT SCHEME transf the Facilitate stock housing Provide Strategic leadership to to leadership Strategic Provide Programme the MANAGEMENT ASSET HOUSING 4: PROGRAMME Per ADMINISTRATION Strategic objectives
95 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e m o c r e
o ov t
y ed n g
o
nt ate r ons e
i t S underperformance To adhere tocompliance requirements Compliance with HR policiesto closelybe monitor Compliance with HR policiesto closelybe monitored None m at i
m o ev C D the acquire to funds less remaining balance of the target. the were maintained units The same but requiring different maintenance aspects theand tenants anticipatingwere the title sectional the of transfer units to their ownership and wanted to have all aspects requiring repairs to be repaired before they take ownership.
th
ned n n
o a l
Planning Planning
nt ons e i
m at rom p
i f 4 m o on February, hence the delay C Dev Strategic session theheld on 4 Target date met was not due to internal delays. Target date met was not due to internal delays. None i 201 t to actual actual to t / at i e
rg Dev ta achievementfor 2013 100 ned ned n
a l
rom p f
4
on
i 201 / at i 3 days rget to actual actual to rget 13 12 IYM 12 DORA reports 4 Quarterly reports Dev ta achievement for 2013 16 days 83 days
511 Actual achievement 2013/2014
Sept 13 monthly12 IYM Reports 12 DORA x reports; 4 Quarterlyx reports; Actual Actual achievement 2013/2014 26 Feb 8 July
1000 housing managed stock Planned target 2013/2014
ed housing 4 x 4 Quarterlyx reports; 1 x 30 April 12 Monthly x IYM reports; 12 DORA x reports; Planned target target Planned 2013/2014 10 Feb 15 April
Actual achievement 2012/2013 383 maintained properties State own
thly (IYM); 12 12 (IYM); thly
13 Feb 10 April 23 August 12 Mon DORA; 4 Quarterly; Actual Actual achievement 2012/2013
formance indicator formance ADMINISTRATION
Number of Number compliance/statutory submitted reports Strategic Planning) Strategic Date of completionof work and performance plan agreements Date of completionof performance annual assessments (PMDS) Performance indicator Performance Date of final submission of Annual Programme (To Plan Performance Performance indicators 4. HOUSINGPROPERTIES MAINTENANCE remaining the of Management stock housing 1179 Per MANAGEMENT ASSET HOUSING 4: PROGRAMME
96 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e m m o o c c r r e e o ov o ov t t
y y g g
ate ate r r t t Facilitation of the name the name of Facilitation change to be prioritizedin the 2013/14financial year None S underperformance None S underperformance None
n n
pe Provincial Provincial pe o o nt nt of of the Housing
ons ons e e i i tothat of the
m m at at i i m m o o were made in anticipation in anticipation made were of the Department’s title sectional of transfer units to occupants Registration of transfers delayed due tothe name chnage Board Eastern Ca Development Board None C Dev None C Dev Arrear rental payments ned ned ned n n a a l l
rom p rom p f f
4 4 on on i i 201 201
/ / at at et to actual actual to et i i
rg rget to actual actual to rget
1 Half year report 1 Annual report 4 Dev ta achievement for 2013 13,804.04 100 None Dev ta achievement for 2013
1 x 1 Annualx Report; x 1 Half yearly; 4 Actual achievement 2013/2014 1,013,804.04 0 1 Actual Actual achievement 2013/2014
Annual Report; 1 Halfx yearly; 4 target Planned 2013/2014 1,000,000 100 1 Planned target target Planned 2013/2014
SINGPROPERTIES
686.24 revenue
369
3 Actual Actual achievement 2012/2013 R1 collected Actual Actual achievement 2012/2013 1 HalfYear; 1 Annual Report -
Asset Asset
AND TRANSFERAND OF HOU
S collected from
SALE ADMINISTRATION
Management Plans Plans Management finalized Number of rental units units of rental Number to transferred beneficiaries of User Number Revenue debtors rental service delivery 4.2.1: indicator Performance Number of reports on on of reports Number Management Strategic of RiskInternal and enhance Control to 4. indicator Performance
97 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
will will e e m m o o c c r r e e
o ov o ov t t
unblock y y
g g cquisitionstate of . ate ate r r t t ffectedmunicipalities S underperformance An assessment and categorizationthe of rental stock ofthe old Housing Board will be conducted leading towards the application of an appropriate intervention for each category a The and Parastatals owned in prioritized be will land the next financial year S underperformance A continueto supported be and a collective effort made to None bottlenecks.
es
ichcould ortfrom
the
1994 process generally parcels parcels wh -
n n
o o municipalities municipalities located in in located land land nt nt
ons ons e e i i that still needs to be be to needs still that m m beneficiary at at m m o o dministrative and legal evi ansfer of pre the Department C d A issues formerregarding Housing Board Rental Stock resolved have impacted on performance The purchase value of acquired exceeded the budgeted amount C devi The Department supported with administration to effecttransfers, but of terms in limited was functions municipalities not be delegated to the department i.e. signing of Deeds of Sales Municipalities lackcapacity to process tr housingstock, and therefore require continuoussupp ned ned ned ned n n a a l l
al rom p rom p f f
4 4 on on i i 201 201 t to Actu
/ / at at et to Actual to Actual et e i i
rg rg 80ha 120 16 Dev ta Achievement for 2013 15 Dev ta Achievement for 2013
192ha 630 34 Actual achievement 2013/2014 0 Actual Actual achievement 2013/2014
272ha 750 18 target Planned 2013/2014 15 Planned target target Planned 2013/2014
0 106,0661ha 22 Actual achievement 2012/2013 Actual Actual achievement 2012/2013 451
ENHANCED EXTENDED DISCOUNT BENEFIT SCHEME DEVOLUTION OF HOUSING PROPERTIES HOUSING OF DEVOLUTION procured procured Number of hectares of hectares Number 4.3: indicator Performance units of rental Number to devolved terms in municipalities of section 15 of the 1997 Housing Act, municipalities municipalities identify to supported beneficiaries qualifying housing for pre-1994 Stock Number of Number Number of housing of housing Number transferred to be stock to qualifying beneficiaries 4.2.2: indicator Performance
98 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e m o c r e
o ov t
y g
ate r t None S underperformance 2014/15 Additional funding will be requested to accommodate priority projects the of implementation The strategy will be accelerated
local
for n
o M M
expenditure was - nt ons e i m at m o evi Asubstantial amount of land belonging to the former Housing Board in Korsten was devolved to the NMBM recreation and economic development purposes. C d The over as a result of the high value of the acquiredland parcels compared tothe budgeted amount the of implementation The strategynew tofast track issuing of title deeds signing the included which memoranda of understanding between the department and local yielded municipalities positive results. ned ned n a l
rom p f
4 on i
201 / at et to Actual to Actual et i
rg 949
R99 R99 415047.52 4 57 Dev ta Achievement for 2013
415047.52
4
R15 10 949 77 Actual Actual achievement 2013/2014
000
R55m 6 20 Planned target target Planned 2013/2014
027m
045
44 Actual Actual achievement 2012/2013 R101 2641
DEVOLUTION OF HOUSING PROPERTIES HOUSING OF DEVOLUTION Number of land parcels parcels land of Number devolved Number of title deeds deeds of title Number beneficiaries issued to Rand value for land land for value Rand acquisition 4.3: indicator Performance
99 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e m o be c
r e o ov t
y g
ate r t The approval to effect the name change will soughtfrom the to Officer Accounting unblock thechallenge. S underperformance None The approval to effect the name change will be soughtfrom the to Officer Accounting unblock thechallenge.
p Deeds Deeds
n
o ownershi nt ons e i m at re were challengesre were m o year year ended. There challengeswere with the registrationthe of the at transfers of name a to due Office the Housing Board which needed to changedbe to thatthe of Eastern Cape Development Provincial Board and the process to do that delayed due to internal process until the year ended. C devi The Department has embarked thesaleon of which title units sectional necessitated repairs to the effected toprior of transfer The with the registrationthe of transfers at the Deeds of name a to due Office the Housing Board which needed to changedbe to thatthe of Eastern Cape Development Provincial Board and the process to do that delayed due to internal process until the ned ned n a l
rom p f
4 on i 201 / at et to Actual to Actual et i
rg 100 100 100 Dev ta Achievement for 2013
511 0 0 Actual Actual achievement 2013/2014
411 100 100 Planned target target Planned 2013/2014
:
0 Actual Actual achievement 2012/2013 383 0
PROPERTIES MAINTENANCE PROPERTIES
Changes planned targets to None None HOUSING
reduced per financial financial per reduced year Number of debtors of debtors Number Number of rental units units of rental Number beneficiaries sold to Performance indicator Performance of housing Number maintained units 4.4:
100 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
- - - - -
ture R’000 Expendi (Over)/Under
96
9,183 2,419 3,690 2,978
R’000 Actual 2012/2013 Expenditure
96 9,183 2,419 3,690 2,978
Final R’000 Appropriation
- - - - -
R’000 Expenditure (Over)/Under
72
1,973 5,471 2,487 10,003
R’000 Actual 2013/2014 Expenditure
72
1,973 5,471 2,487 10,003
Final R’000
Appropriation
s Maintenances
Linking performance with budgets Linking performance with Cost drivers include the acquisition of well-located land which is driven by market related prices, as well as the transfer of title deeds to qualifying beneficiaries, both beneficiaries, qualifying to deeds title of transfer the as well as prices, related market by is driven which land well-located of acquisition the include drivers Cost achievement. significant of areas are which of Sub-programme expenditure The programme overall achieved more than 50 % of its indicator targets. The programme spend 100% of its final budget in the 2013/14 and 2012/13 financial financial 2012/13 inand budget 2013/14 final itsthe of 100% spend programme The targets. indicator its of % 50 than more achieved overall programme The below. table the in reflected is as years Programme Name
- Devolution of Housing Properties Housing of Devolution Propertie Housing Total Sub Administration Sale and ofTransfer Properties Housing
101 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
5. CONDITIONAL GRANTS
5.1 Conditional grants and earmarked funds received
The table/s below details the conditional grants and ear marked funds received during for the period 1 April 2013 to 31 March 2014. Conditional Grant :
Department who transferred the grant Human Settlements (Vote 31)
Purpose of the grant To provide funding for the creation of sustainable human settlements
20 412 residential units delivered in various housing programmes 17 265 serviced sites delivered in various housing programmes 500 Finance linked subsidies approved and disbursed 22 013 Informal settlements provided with services/upgraded Expected outputs of the grant services 600 title deeds issued 272 hectares of well-located land acquired and released for residential development 22 000 work opportunities created through related programmes
12 642 residential units delivered in various housing programmes 11 720 serviced sites delivered in various housing programmes 262 Finance linked subsidies approved 11 336 Informal settlements provided with services/upgraded Actual outputs achieved services 10 949 title deeds issued 192 hectares of well- located land acquired and released for residential development 16 578 work opportunities created through related programmes
Amount per amended DORA R2 523 803 000
Amount received (R’000) R2 523 803 000
Reasons if amount as per DORA was not received Not applicable
Amount spent by the department (R’000) R 2 523 803 000
Reasons for the funds unspent by the entity Not Applicable
Poor performance by contractors Poor pre planning Lack of Bulk Infra Structure Reasons for deviations on performance Delays in the Procurement Processes Administrative blockages related to signing of contracts. Lack of project level monitoring and punitive measures
The Department has implemented a strategy to address issues of cost effectiveness, quality and quantity in the housing delivery Measures taken to improve performance process. These are as follows; 1. The implementation strategy has changed to focus on
102
ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
packaging projects and implementing a turnkey approach by bringing high performing contractors to manage pre-planning and implementation. This new approach speaks directly to reasons for underperformance with proven results in the value chain 2. Management of implementation and strategic risks through tightening controls and close monitoring of contractor performance. To this end, weekly meetings with contractors are held in the Regions 3. Underperforming contractors are put on terms and contracts terminated where necessary
Monthly and quarterly performance reports are submitted by all affected programmes through the In Year monitoring and Monitoring mechanism by the receiving department reporting process. Report are consolidated in terms of the PFMA requirement and submitted to the Executive Authority, Portfolio Committee, Head of Department, Top Management, Provincial Treasury and National Department of Human Settlements
103 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e decision decision
efforts made municipalities
Performancethe at
realised in 2014/2015 th as year financial Affected will be supported and collective to unblock the bottlenecks. None Intervention/Remedial Actions all of A reconciliation old cases currentlyis in process and is it anticipated to be complete by theend of 1st quarter of 14/15. Thereafter a will be taken on the approval of any new application. The expenditure will be subsidy grant issued to banks/conveyancers.
hip. has underperformed during the year due to delays inthe conveyancing transfer processes. Under performance on the instrument has been as a result of delays in transfer signing documents by municipalities. The department has embarked on sectional of the sale title units, which necessitated repairs to be effected toprior of transfer owners payment Trench Reason for Reason / any) (if variance Comment No Target There has been over expenditure on the instrument due the that fact the to focus has been on ensuring that the backlog and on approved subsidies is addressed. The programme
80% 43%
161% 143% 106% % of Allocation spent
0 157 3 699 1 920 5 950 - - 177 138 -
0 Varience Funds Funds Varience Allocated&Spent R'00
0 631 4 500 9 760 32 452 586 134 Expenditure Expenditure R'000
0 788
6 061 30 532 10 450 408 996 Funds Funds Allocated R'000
0 0 27 630 511 4745 (other)
Actual Actual Delivery -
0 0
192 800 411 7217 Projected Outputs (Other)
0 0 0 0 0 381 RFORMANCE (units)
Actual Actual Delivery -
0 0 0 0 0
237 Projected Outputs (Units)
0 0 0 0 0 2601 (sites)
Actual Actual Delivery -
0 0 0 0 0
1662
2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites) - -
R7 R7 000)
- -
R3 R3 500) Non R3 R3 500) credit Programme - - - - - 3 Enhanced
1.5a Rectified RDP 1.4 State Asset Asset State 1.4 Maintenance Programme 1. Extended Discount Benefit Scheme (EEDBS) 1.2 Housing finance linkedIndividual (FLISP)- subsidies (R3 501 1.1b Individual housingsubsidies (R0 1. Financial Intervention 1. Financial 1.1a Individual housingsubsidies (R0 linked Sub Credit Linked
104 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e closely closely e Performancethe at affected regions will be closelymonitored. Contracting being are processes 5 for the fastracked MPCC awarded tenders. Accreditation programm monitored in the next financial year to ensure thattargets met. are is Opscap of Utilization monitored to ensure thatthe annual Intervention/Remedial Actions affected regions will be closelymonitored.
of
in lieu in planning planning
-financial -financial to delays in delays to units under units under construction. Non under is performance due to outstanding project administration and pre- Under Under is performance due to outstanding project administration and pre- issues. on Construction MPCC planned the not started has due Administrative processes. Under expenditure on the instrument The under expenditure on OPSCAP is todue Reason for Reason / any) (if variance Comment NMMMU made to to accelerate on delivery rectification projects wellas as payment issues.
31% 22% 78% 91%
% of Allocation spent
8 094 9 233 24 683 17 729
0 Varience Funds Funds Varience Allocated&Spent R'00
5 107 88 450 11 234 27 989 Expenditure Expenditure R'000
97 683 35 917 22 836 36 083 Funds Funds Allocated R'000
0 0 0 262 (other)
Actual Actual Delivery -
0 0 0
522 Projected Outputs (Other)
0 0 0 0 RFORMANCE (units)
Actual Actual Delivery -
0 0 0 0
Projected Outputs (Units)
0 0 0 0 (sites)
Actual Actual Delivery -
0 0 0
199 2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites)
2002 -
1994
Programme -
1.8 Operational Capital Budget 1.7 Accredited (level Municipalities 2): & 1 1.6 Social and Facilities Economic 1.5b Rectification of Housing Stock(pre 1994) Sub stock
105 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
. .
in - will be be will
deficit tmentis to
fastracked. Alternativeland parcels were purchasedto negate the under expenditure. Conclusion of the agreements depar The enforce contractual non on terms Intervention/Remedial Actions allocation is not exceeded. of Resolution administrative issues. Department and NHBRCmust make sure theythat agree on applicable quantum
.
targeted planning and - rocesses.
Department was unable tosecure land parcels originally in Delays administrative processes in the to relation appointment of two ServiceProviders has resulted in the delays inthe the of finalization remaining Housing Sector Plans. Pre project administration Reason for Reason / any) (if variance Comment the delays inthe pre planning , project readiness and close out p Under performance on due to Administrative delays by the affected Municipalities. Over expenditure due to payment of increased quantum to NHBRCfor units previously enrolled.
0% 95% 50%
113% 137% 112% % of Allocation spent
200 8 038 3 724 5 988 3 989 - - 108 938 -
0 Varience Funds Funds Varience Allocated&Spent R'00
0 3 750 22 141 37 006 958 694 151 681 Expenditure Expenditure R'000
153 200
7 474 16 33 017 849 756 159 719 Funds Funds Allocated R'000
0 0 0 192 27839 22000 (other)
Actual Actual Delivery -
0 0
272 2126 36914 27500 Projected Outputs (Other)
0 0 0 0 381 133 RFORMANCE (units)
Actual Actual Delivery -
0 0 0 38
275 253 Projected Outputs (Units)
0 0 0 0 308
2601 (sites)
Actual Actual Delivery -
0 0 0 0
218 2079 2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites)
total: Financial Financial total: Programme - - apters of IDP's
2.1 Project Linked Subsidies(current commitments Sub Intervention Programmes Housing 2. Incremental 1.12 Housing ch enrolment (relatedto grant) 1.11a Land parcels procured(IHAHSD) 1.9 Blocked projects 1.10 NHBRC Sub
106 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
- - planning and planning and st track and resolve The department tois The department tois
The project pipeline pipeline project The The project pipeline pipeline project The - enforcecontractual terms on non performing contractors and terminate contracts where applicable. has task facilitation been establishedto fa pre- administrative issues. - enforcecontractual terms on non Intervention/Remedial Actions performing contractors and terminate contracts where applicable. has task facilitation been establishedto fast track and resolve pre- administrative issues.
- target
results results and
There has been was was exceeded. There has been over achievement on thetarget set, but under expenditure on the instrument Reason for Reason / any) (if variance Comment issuesin Chris Hani were resolved, which yielded positive services were constructed. Over expenditure can to attributed be also the number of various stages constructed. under expenditure on the instrument due tothe Pre planning and project administration in identified issues a number of projects, however in some theprojects non-financial
23% 69%
% of Allocation spent
59 616 16 827
0
Varience Funds Funds Varience Allocated&Spent R'00
37 085 17 633
Expenditure Expenditure R'000
53 912 77 249
Funds Funds Allocated R'000
0 0 (other)
Actual Actual Delivery -
0 0
Projected Outputs (Other)
61 278 RFORMANCE (units)
Actual Actual Delivery -
0 20
Projected Outputs (Units)
1514 2657 (sites)
Actual Actual Delivery -
1096 1915
2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites)
INFORMAL
Programme -
2.2b Integrated Residential Development Programme:Phase 1:Planning and Services SETTLEMENTS 2.2a Integrated Residential Development Programme:Phase 1:Planning and Services Sub approved up to 31/03/07)
107 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
- planning and The project pipeline pipeline project The The department tois
Theconstruction on - has task facilitation been establishedto fast track and resolve pre- administrative issues. - enforcecontractual terms on non performing contractors and terminate contracts applicable. where Intervention/Remedial Actions performing contractors and terminate contracts where applicable. closely be will site monitored to ensure thatthe projected units are completed.
planning Issues - ncreased There has been under performance on the instrument : of result a as Beneficiary management issues, Project scope changes and Pre planning issues. Beneficiary management issues. Projectscope changes. Pre No Target Reason for Reason / any) (if variance Comment There was over performance theon instrument todue extensive with interactions contractors to enhance their capacity toand deliver on the targets. This has resulted in i productivity and over expenditure.
75%
119%
% of Allocation spent
0 68 605 63 462 -
0
Varience Funds Funds Varience Allocated&Spent R'00
0 401 566 209 600
Expenditure Expenditure R'000
0
338 104 278 205
Funds Funds Allocated R'000
0 0 0 (other)
Actual Actual Delivery -
0 0 0
Projected Outputs (Other)
0 RFORMANCE 3821 1906 (units)
Actual Actual Delivery -
0
2472 4231
Projected Outputs (Units)
0 0 0 (sites)
Actual Actual Delivery -
0 0 0
55
2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites)
Programme -
2.2e Integrated Residential SETTLEMENTS 2.2d Integrated Residential Development Programme:Phase 2:TopStructure Construction INFORMAL Residential Residential Development Programme:Phase 2:TopStructure Construction Sub 2.2c Integrated
108 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
to
planning and planning and
Continuedmonitoring fast track and resolve pre- pipeline project The has task facilitation been establishedto fast track and resolve pre- administrative issues. pipeline project The has task facilitation been established administrative issues. on construction The Intervention/Remedial Actions take will projects the of placeto ensure that projects completed are as planned. and
eport at all planning - Planning Planning - - project administration has been resolved in Alfred Nzo. Nzo. Alfred No r previously Under performance due tothe delays in the pre planning as well as activities Administrative delays. Under performance due to: Pre issues. No Target Over expenditure is Reason for Reason / any) (if variance Comment project The benefitted from completions on various stages in the previous months performance. Pre
0% 13% 49% 13%
124%
% of Allocation spent
0 1 968 2 550 5 904 62 974 22 030 -
0
Varience Funds Funds Varience Allocated&Spent R'00
0 0 904 288 61 677 113 890
Expenditure Expenditure R'000
0
6 808 2 256 2 550 91 860 124 651
Funds Funds Allocated R'000
0 0 0 0 0 0 (other)
Actual Actual Delivery -
0 0 0 0 0
Projected Outputs (Other)
0 0 0 868 481 353 RFORMANCE (units)
Actual Actual Delivery -
0 4 30
160 1161 2347
Projected Outputs (Units)
0 0 0 0 444 338 (sites)
Actual Actual Delivery -
0 0 0
985 215 1553
2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites)
)
Programme -
Subsidies (Blocked (Blocked Subsidies Projects) 2.6 Emergencya 2.5a Consolidation (Excluding Subsidies Projects) Blocked 2.5b Consolidation SETTLEMENTS SETTLEMENTS 2.4 Informal Settlement Upgrading 2.3b People's Housing Process INFORMAL SETTLEMENTS 2.3a People's Housing process Sub development Programme:Phase 4:TopStructure Construction (INFORMAL
109 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
SHRA
l be closely closely l be
Three projects were endorsed by theSocial Provincial Housing Committee in December 2013 but these still are to go through Accreditation processes. 3 The projectsmay assist in recovering in 2014/15. meetings of Schedule will be draftedfor improvedmanagement flows. cash the of Intervention/Remedial Actions wil site monitored to ensure thatthe quality issues are addressed before work any of certification done. The department will continueto prioritize the permanent in the solutions 2014/2015 financial year.
. er
as a provision provision ess.
intervention. Implementation of EndorsedProjects delayed due to as they are still subjectedto the Housing Social Regulatory Authority accreditation proc Numbercases of lodged decreased, fewer in resulting sittings committee in the year under Reason for Reason / any) (if variance Comment mainly todue BCM storm damage projectthat is over performing.Poor quality of construction in other projects contributed tothe underperformance Department has focus its shifted fromthe of temporary shelt to focusa on permanent solutions sustainable
7% 87% 77%
% of Allocation spent
722 9 607 59 352 136 571
0 Varience Funds Funds Varience Allocated&Spent R'00
27 4 055 4 664 31 343 896 1 Expenditure Expenditure R'000
4 777 40 950 64 016 1 032 698 Funds Funds Allocated R'000
0 0 392 392 (other)
Actual Actual Delivery -
0 0
2000 4126 Projected Outputs (Other)
0 0 78 RFORMANCE 7901 (units)
Actual Actual Delivery -
0 0
896 10678 Projected Outputs (Units)
0 0 0 5261 (sites)
Actual Actual Delivery -
0 0 0
6314 2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites)
rs
support Housing:
total: Programme - -
operational 3.2a Social Programmes Housing Rental & 3. Social 3.1 Institutional Subsidies Sub Incremental Housing Relief) 26.b Emergency Temporary Shelters Sub Housing Assistance (Permanent Disaste Solutions
110 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
to
ensure that targets are metin 2014/15 Construction will be closelymonitored and contracts of terms enforced. Intervention/Remedial Actions The 3 projectsmay in recovering in assist 2014/15. Preplanning has been finalised and procurement process will be fastracked
in
-
stages paid
Municipality. Municipality. Various Project Pre Planning and Project Administration activities. undertaken and Reason for Reason / any) (if variance Comment review. Underperformance is instrument in the mainly todue projectsthat could not be accredited by the Social Housing Regulatory Authority because they failed tomeet criteria. the Underperformance is instrument in the mainly todue in delays preplanning processes such as EIA and Rezoning for theThabo Project Village Intsika Yethu Local
31% 52% 34%
100% 117% % of Allocation spent
0 0 1 500 88 715 67 127 27 141 -
0 Varience Funds Funds Varience Allocated&Spent R'00
0 767 123 29 454 39 063 470 925 Expenditure Expenditure R'000
0 123
2 267 56 595 403 798 127 778 Funds Funds Allocated R'000
0 0 0 0 0 0 (other)
Actual Actual Delivery -
0 0 0 0 0 0
Projected Outputs (Other)
0 0 0 0 74 RFORMANCE 3256 (units)
Actual Actual Delivery -
0 0 30
586 5685 1512 Projected Outputs (Units)
0 0 0 0 0 3044 (sites)
Actual Actual Delivery -
0 0 0 0 0
5351 2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites)
al: Social & & Social al: Constructed
tot Programme - -
4. Rural Housing Housing 4. Rural Worker4.1 Farm Housing Assistance 4.2 Rural Housing: Communal land rights 3.3b Community units residential (CRU) Sub Housing Rental residential units units residential (CRU) Converted/Upgraded 3.3a Community Sub 3.2b Social Housing:Capital Grantsfor rental housing (Funded by NDoH)
111 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ECDHS is
planning and ncial years
pipeline project The has task facilitation been establishedto fast track and resolve pre- administrative issues. a is national BEP This programme and two next thus priority, fina 2014/15, 2015/16there is granta provided to specifically deal with all related sanitation issues with buckets eradication as a The priority. Intervention/Remedial Actions 0 Performance theon closely be will projects monitored to ensure thatthetargets are met.
-
- -
and
inistrations inistrations
vandalismin Zanemvula Chatty. Under performance on the instrument due to:Project Pre planning and Project Administrat6ion issues. During 2013 the the MINMEC Minister National to decision a took eradicate buckets SouthAfrica. The programme was not Business in the Planfor 13/14, however as an intervention R106 Reason for Reason / any) (if variance Comment paid Advance payment of on R10m Rural VoucherScheme 0 Under expenditure due to: The under performance due is Pre Project to planning and Project Adm issues to due invasion
22% 76%
117% % of Allocation spent
43 914 67 127 12 936 - 106 071 -
0 Varience Funds Funds Varience Allocated&Spent R'00
40 488 12 436 470 925 106 071 Expenditure Expenditure R'000
0
53 423 56 350 403 798 Funds Funds Allocated R'000
0 0 0 0 (other)
Actual Actual Delivery -
0 0 0 0
Projected Outputs (Other)
0 890 140 RFORMANCE 3256 (units)
Actual Actual Delivery -
0
5685 1259 1003 Projected Outputs (Units)
0 42 772 3044 (sites)
Actual Actual Delivery -
0
856 2665 5351 2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites)
ral
total: Ru Programme - -
PRIORITY 5.
Bucket Eradication Bucket PROVINCIAL 6. SPECIFIC PROGRAMMES Sub Housing PROJECTS Sub
112 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Intervention/Remedial Actions this to committed programme and will continueto play a proper oversight on ImplementingAgent NURCHA to ensure thatthefunds are appropriately spent.
Reason for Reason / any) (if variance Comment to paid was million NURCHA as an advance payment for the whole projectto address the serious challenges facing as in municipalities far as water reticulation, sanitation implementation ( waterborne water of )scarcity and lack of budget.
% of Allocation spent 100%
0
0 Varience Funds Funds Varience Allocated&Spent R'00
2 523 804 Expenditure Expenditure R'000
2 523 803 Funds Funds Allocated R'000
(other)
28231 Actual Actual Delivery -
41040 Projected Outputs (Other)
RFORMANCE (units)
12642 Actual Actual Delivery -
20412 Projected Outputs (Units)
(sites)
11720 Actual Actual Delivery -
17265 2013/2014 PECONDITIONAL GRANT Projected Outputs (Sites)
Programme -
Sub
113 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
6. DONOR FUNDS
6.1 Donor Funds Received
All donor funds received are spent as the Department requests sponsors only when there is a particular need and all funds are utilised for that particular purpose. These requests are usually done through the Stakeholder Engagement Directorate and the table below provides the comprehensive list of all the sponsors for the 2013/14 financial year.
Name of the donor Amount received Donation received in Output achieved The purpose of in 2013/14 FYt kind the donor funding
Dept of Human R1 000 - Domestic Furniture for Destitute Alleviate Poverty Settlement Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
Illiso Consulting R10 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
Nare Housing R10 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
Lilibo Investments R10 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
Technical Task Team: R7 500 - Domestic Furniture for Destitute Alleviate Poverty Mr Zitumane, Mr Homes handed over during the and restore dignity Spaulding , Mr Craig Women Build at Port St Johns in Sam Aug 2013
Hardcore R2 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
KPMG R1 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
Craig Makapela R2 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
Profit Partners R10 000 Employ one individual Domestic Furniture for Destitute Alleviate Poverty from the community with Homes handed over during the and restore dignity grade 12 and drivers Women Build at Port St Johns in licence Aug 2013
Goliath Construction R15 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
Umso Construction R10 000 - Domestic Furniture for Destitute Alleviate Poverty (Pty) Ltd Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
114 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Upahla Construction R50 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
New Creations R5 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
H D A ( Masakhane R2000 - Domestic Furniture for Destitute Alleviate Poverty Projects) Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
Lilitha Projects R10 000 - Domestic Furniture for Destitute Alleviate Poverty Homes handed over during the and restore dignity Women Build at Port St Johns in Aug 2013
NHFC - Paid directly to Foam 57 base sets for destitute families Alleviate Poverty Factory for 57 base sets and restore dignity at the value of R49 455.00
Betcrete - Windows and Door These were put in 5 destitute To improve the Frames homes at Port St Johns quality of these houses
Eyamabamba - 35 Blankets Given to Destitute Families at Port Alleviate Poverty Construction St Johns and restore dignity
Aurecon - Library books and Books were put in the Library To improve the bursary for one child donated by Everite. quality of A student is now attending Mthatha education in the High School and Aurecon is paying community and the fees and monitoring progress alleviate poverty and restore dignity
EVERITE - School library Erection of the library at Port St To improve the Johns quality of education
SAWIC - Flees blankets Given to destitute families at Port Alleviate Poverty St Johns and restore dignity
SHRA - Landscaping Landscaping was done by SHRA Landscaping and in 5 destitute homes in Port St greening of the Johns houses
Lapcon Safety - 100 overalls They were donated to 100 To serve as volunteers for Women Build protective clothing for volunteers
C-Pro Construction - Groceries for 57 homes Distributed to 57 destitute families Alleviate Poverty during the Women Build and restore dignity
NHBRC - Printers and laptops 7 Multi-function Printers and 2 Prizes for the bought at Haifa laptops at the value of R25 000 winners of Govan Cooperation Mbeki Awards
NURCHA - Vouchers from Vouchers, from incredible Prizes for the Incredible Connection connection at the value of R14 000 winners of Govan Mbeki Awards
NEDBANK - Vouchers from Vouchers, from incredible Prizes for the Incredible Connection connection at the value of R2000 winners of Govan Mbeki Awards
EVIRITE R 10 000.00 - Still to procure 2 cell phones and Prizes for the
115 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Ipads for Govan Mbeki Awards winners of Govan Winners Mbeki Awards
TSOGO SUN ( Garden - Voucher to sleep at the Week end voucher for 2 Prizes for the Court) Garden Court for a winners of Govan weekend Mbeki Awards
MMS Developments - Domestic Furniture 5 lounge suites,4 double Alleviate Poverty beds,linen,curtains,5 pack of and restore dignity groceries at the value of R16 000
UPAHLA - Domestic Furniture 3 Set of lounge suites,3 double Alleviate Poverty CONTRACTORS beds,linen,curtains,3 pack of and restore dignity groceries at the value of R16 000
NARE HOUSING - Domestic Furniture 1 Set of lounge suite,1 double bed Alleviate Poverty at the value of and restore dignity R3 800
MOTHEO GROUP - Domestic Furniture 1 Lounge suite, Linen, 3 pack of Alleviate Poverty CONSTRUCTION groceries at the value of R4 000 and restore dignity
MWP Contractors - Domestic Furniture 2 sets of lounge suits and 2 sets of Alleviate Poverty double beds at the value of R10 and restore dignity 000
EURECON - Groceries 3 Packs of groceries at the value of Alleviate Poverty CONSULTING R1 500 and restore dignity ENGINEERS
116 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
7. CAPITAL INVESTMENT
7.1 Capital investment, maintenance and asset management plan
Progress made on implementing the capital, investment and asset management plan. The Department of Public Works does the implementation of the Capital, investment and Asset Management Plans. The Department of Human Settlements does the assessment of the leased assets and report its findings to DPW which takes up action to be implemented A User Asset management Plan was drafted and completed on Immovable User Assets where the Department is a user on assets leased by the Department of Public Works.
The department has 1138 properties from the ex-housing board list, there are 80 individual standing dwellings, 331 sectional title flats, 93 garages and 634 pieces of vacant land. Vacant land and individual dwellings will be devolved to municipalities, while the sectional title units are currently undergoing a process of transfer to the beneficiaries
No projects were closed during the 2013/2014 financial year. Human Settlements Projects by its nature have approximately a 3 year cycle from start to finish
Plans to close down or down-grade any current facilities, DPW has a responsibility to close down or down grade current facilities. Plans to move the Alfred Nzo Region had been communicated by DPW to the department of Human Settlements. Communication with DPW had been entered into by the DPW and the Department of Human Settlements to move the regional office to user-friendly facilities. That had been a requirement of the previous years to date. Amathole and Buffalo City Regions have been moved to operate in the offices in Chiselhurst, and the OR Tambo Region has been renovated and the office is fully functional again
Progress made on the maintenance of infrastructure DPW responsibility as in the first response, due to that the facilities are leased by DRPW on behalf of the Departments. Plans to maintain infrastructure are concluded between the Department of Public Works and the Landlord.
Developments relating to the above that are expected to impact on the department’s current expenditure. All plans are completed and executed by the custodian department – Department of Public Works.
Details as to how asset holdings have changed over the period under review, including information on disposals, scrapping and loss due to theft From the 8137 properties transferred to the department by DPW, 44 properties were transferred back to DRPW, due to not meeting the core function of the department. The ex-housing board properties still remain as 1138 as they were during the previous year pending the completion of the transfer process of the 14 properties to Inkwanca Municipality and 43 properties to Nelson Mandela Metro Municipality which will change ownership from that of the department’s to that of the municipalities.
Measures taken to ensure that the department’s asset register remained up-to-date during the period under review Asset Verification is done on a quarterly basis and the asset register is updated accordingly. Monthly major and minor assets have been reconciled with payments.
117 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
The on-site asset verification process of some of the properties has taken place. However, lack of human resource capacity and lack of funding had been challenging factors. The department has the following categories of assets;-
1. Transferred from DPW; 2. Ex-Housing Board Assets. 3. Departmentally acquired properties.
On 1 above, a data clean-up process was undertaken where potential duplications were identified and removed from the list and furthermore, existence of the asset was verified by the use of GIS, Chief Surveyor General’s Maps, use of LaPsis and physical verification conducted where possible. Assets not suitable for township development were transferred back to DPW, such as schools, clinics, businesses and offices.
2. Ex-housing board assets – some were physically verified.
3. Departmentally acquired properties – the register was updated with new acquisitions.
The current state of the department’s capital assets, for example what percentage is in good, fair or bad condition Assets from the ex-housing board are in a “fair” state because the assets are leased out to the tenants and where applicable the department does maintenance on these properties.
Major maintenance projects that have been undertaken during the period under review None
Progress made in addressing the maintenance backlog during the period under review, The department has embarked on a sales campaign to transfer sectional title units to beneficiaries. Therefore, maintenance requests from tenants was accommodated and responded to the respective properties.
Infrastructure projects 2013/2014 2012/2013
Final Actual (Over)/Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000
New and replacement assets
Existing infrastructure assets
- Upgrades and additions
- Rehabilitation, renovations and refurbishments
- Maintenance and 6 060 689.80 8 124 175.23 (2 063 485.43) repairs
Infrastructure transfer
- Current
- Capital
Total
118 PART C GOVERNANCE
119 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
1. INTRODUCTION
The Departments commitment to governance is entrenched as one of its Strategic goals as it relates to the provision of political, administrative leadership support that ensures a well-managed, effective, efficient prop-poor and citizen centric department as evidenced by an unqualified audit report. To this end, the Department has put in place systems and processes towards the achievement of good corporate governance.
2. RISK MANAGEMENT
Risk Management is a process whereby organisations methodically address the risks attached to their activities towards achieving a sustained benefit within each activity and across the portfolio of all activities (The Institute of Risk Management (IRM), The Association of Insurance and Risk Management in the Public Sector: A Risk Management Standard, 2002). In this regard, the following has been achieved;
The department has a Risk Framework which is reviewed annually. It consists of a Strategy, Policy and Charter. Assessment of risks are done annually per the strategic risks and operational risks. Emerging risks are done during the year to consider AG and Internal Audit findings Risk Management Committee sits quarterly to monitor progress and also advise the department on risk matters especially those that need urgent matters. Our externally appointed chairperson also reports to the Audit Committee. The Risk Chairperson reports to the Audit Committee on quarterly basis and the audit committee monitors and advised the department with timeframes. Progress in the management of some risks have been noted as these have decreased to an accepted level.
3. FRAUD AND CORRUPTION
The Fraud and Corruption Implementation Plan was approved and targets set in our APP/operational plan were implemented. The department embarked on an intensive integrated awareness programme with other programmes e.g. Capacity Building and Accreditation of Municipalities and Customer Care. Arising out of this collaboration, we have dealt with many community issues raised in relation to housing projects. Project Steering Committees were targeted to create an in depth understanding of fraud and corruption issues they should expect and how they should tackle them. Interest shown by politicians, officials in municipalities on fraud and corruption awareness is encouraging the department to ensure that it reaches more municipalities in the next financial year.
The department has vetted 17 SMS officials and 12 Bid Committee Members during this period and the outstanding number will be achieved in 2014/15. In collaboration with Human Resources Management and the State Security Agency, 105 new candidates including interns were pre-screened to minimise conflict of interest with officials to be appointed.
The department acknowledged 32 cases and 30 were dealt with through referrals to relevant institutions/components and preliminary investigations conducted. Feedback on cases being investigated is given within the 30 day period; some of the cases due to their complexities are not completed on time.
The Anti-Corruption unit reports to the Risk Management and Audit Committees on the cases investigated related to fraud and corruption. As an oversight bodies, it interrogates in depth the nature of cases that the department is confronted with, provide support and advises on mechanisms to deal with related challenges.
Through whistleblowing strategies, the department has dealt with serious cases that involved officials and these are currently pursued by our courts. 100% Of SMS did submit their confidential disclosures. This similar process has been cascaded down to MMS where Risk Management and Internal Control unit facilitated this process to ensure that officials submit their disclosure forms. More awareness
120 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
sessions on ethics management and encouraging officials to speak out on issues of fraud and corruption were conducted with Supply Chain Management unit, Regional offices. The new policy on Prevention of Trade by officials with the Eastern Cape Government was also conducted with regions and identified programmes. This policy will be rolled out to other programmes so as to reach every official in the department.
The Office of the Premier’s Provincial Fraud and Corruption Forum provides a platform for Department to present all the fraud and corruption related cases and share with other departments challenges faced in dealing with these cases. The hotspots for the Department are more on procurement irregularities around tendering processes, hence all appointed Bid Committee members are vetted.
The Public Service Commission in conjunction with the Office of the Premier ensures that all cases referred to the department are investigated and quarterly reporting is done through scheduled meetings.
4. MINIMISING CONFLICT OF INTEREST
All SMS members formally declare their Financial Interest annually. Declarations for 2013/2014 were submitted to the office of the MEC for review and consideration of the declared interest. In the event where an employee’s interest appears to be in conflict with the department interest, the matter is raised formally with the relevant employee and the MEC provides a directive on the matter.
Declarations are further submitted to the office of the Public Service Commission for review, and if the need be arises, the query is referred back to the department for follow up with the affected employee. In addition to the declaration of personal financial interest, the Department requires that Top Management declare any relatives that are employed by the department. The purpose is to identify and eliminate the potential for nepotism in the appointment of staff.
Disclosures forms for level 12 and downwards were designed and distributed to all officials in this category. This was done as part of developing and organisation culture of controls in the Department. Approximately 35% officials responded to the request and returned the forms to the Internal Control Unit.
5. CODE OF CONDUCT
Brief description of Code of Conduct
A Public Service Code of Conduct is a guide of principles designed to help professional conduct in the Department with honestly and integrity. The Department has code of ethics that its employees are supposed to follow. Breaking the code of ethics can result in discipline that may lead to serious consequences of termination of services or dismissal from the department. A code of ethics is important because it clearly lays the "rules" for behaviour and provides a pre-emptive warning.
The Department of Human Settlements is adhering to the above code of conduct. The Department is utilizing Annexure A of Resolution 1 of 2003 for Public Service Coordinating Bargaining Council when misconduct occurred.
Process followed where breach of the rule or code of conduct is found;
(i) An investigation should be conducted before the hearing can be instituted. (ii) If there is a prima facie evidence the defendant should be given a notice to attend a disciplinary enquiry at least five working days before the date of the enquiry, with date, venue, time and his rights during the hearing. (iii) The HOD should appoint a presiding officer and Employer Rep. (iv) If the sanction is dismissal the employee should appeal within FIVE working days to the executing authority.
121 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
If the appeal is unsuccessful the next step is to refer the case to the General Public Service Sectoral Bargaining Council for conciliation within 30 working days, if conciliation remained unresolved the next stage is arbitration if remain unresolved the next stage is Labour Court and thereafter, Labour Appeal Court.
6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES
Health, Safety and Environmental issues are, in terms of the health and safety Act jointly the responsibility of both the employer and the employee. The employer is charged with the duty of making sure that he provides and maintains a working environment that is safe and without risk to the health and safety of employees. In making sure that the mandate of the employer is carried out, Health and Safety Representatives, First Aiders and Fire Marshalls are appointed and trained in their respective duties. Their appointment is for a period of three years. According to the Act, Health and Safety Representatives meet quarterly to discuss Health and Safety matters and make recommendations on such matters. The Department complies with the mentioned standards in that it has trained Health and Safety Representatives who meet every quarter to discuss health and safety matters. They are also charged with the responsibility of inspecting their respective worksites for hazards and risks which may be detrimental to the health and safety of employees. Trained First Aiders, provided with first aid boxes, provide first aid to injured employees. Fire Extinguishers and Hose Reels, on which training has been provided to Health and Safety Representatives, are serviced annually. Awareness Campaigns on health and safety issues are done in the department by means of staff information sessions and articles published in the Departmental Newsletter. Mitigated risk reports are compiled on a quarterly basis and kept on file. Risk reports on all departmental buildings are also updated on a quarterly basis. Monthly checklists from all Health and Safety Reps are collected and checked for risks which are mitigated with the assistance of the various landlords, Public Works or Supply Chain Management. Also, in a bid to mitigate all incidents, each injury on duty is investigated and recommendations brought before the health and Safety committee which then endorses or adds to them and on the basis of such recommendations the identified risks are mitigated.
7. PORTFOLIO COMMITTEES
The dates of the meetings: 7 May 2013 22 October 2013 29 October 2013 12 November 2013 19 November 2013
Abovementioned makes reference to dates of set meeting with Portfolio Committee where the Department has presented its Annual and Quarterly performance.
8. SCOPA RESOLUTIONS
The Department received an unqualified audit finding in the 2012/13 financial year and consequently was not called to SCOPA.
9. PRIOR MODIFICATIONS TO AUDIT REPORTS
The Department received an unqualified audit finding in the 2012/13 financial year.
122 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
10. INTERNAL CONTROL UNIT
Internal Controls has a key role in the management of risks that are significant to the fulfilment of its business objectives. A sound system of internal control contributes to safeguarding departmental assets. Some of the key activities performed in the year under review include;
Review of the Internal Control Framework and Procedure Manual Pre-Audit verifications of authenticity, validity, accuracy, completeness and compliance with relevant prescripts were done before any issue of order or payment is made for equitable share. Monthly sittings of the Irregular Expenditure Committee except in the months where there were competing priorities or no new cases reported. Monthly monitoring of the Audit Intervention Plan Declaration of interest was issued to level 12 to level 1. Only 35% returned the forms. Specimen signatures were obtained from management Control Self-Assessment was conducted and 60% responded Face value documents were safeguarded and end year closure was done except Nelson Mandela Region ( no response received)
11. INTERNAL AUDIT AND AUDIT COMMITTEES
The objective of internal audit is to provide all levels of management, external auditors and Audit Committee with an objective, independent assessment of the quality of governance, risk management and internal control processes, and provide recommendations and suggestions for continuous improvement.
The internal audit activity conducted its reviews on the following areas as per internal audit plan that was approved by the Audit Committee namely: Evaluation of quarterly IFS and Performance Information, project management & quality assurance, SCM& contracts management, projects approval process, Risk Management and Governance reviews. The unit has observed some improvements in the internal controls during the year under review. However there are still concerns with the level of internal controls where evidence of inadequate monitoring and enforcement of implementation of agreed actions by management were observed particularly on the following areas;
Commitments Contingent liabilities Performance Information Irregular expenditure
The Audit Intervention Plan and Key Controls Dashboard were developed in the year under review to monitor and enforce management commitment to address the report of the Auditor General; however, it was noted that there was no effective monitoring by management of the Audit Intervention Plan and the matter was brought to the attention of both management and the audit committee.
The objective of the audit committee is to provide independent oversight function over governance, risk management and internal control processes of the Department and make recommendations for improvement to the accounting officer.
During the year under review the audit committee continued to partner with management in order to enhance governance. Recommendations to improve internal control weaknesses identified during the internal audit reviews were discussed and agreed with management on the above areas of concern. Attendance of audit committee meetings by audit committee members (Tabular form);
123 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
The table below discloses relevant information on the audit committee members:
Name Qualifications Internal or If internal, Date Date Resigned No. of external position in the appointed Meetings department attended
Adv. A L. Mothibi LLB External N/A 1 July 2011 21 August 2013 1
Ms G.E. BComm External N/A 1 July 2011 N/A 5 Diutlwileng
Mr J.J. Emslie CA(SA) External N/A 1 July 2011 N/A 5
Ms B.T. Daries CA(SA) External N/A 1 July 2011 N/A 3
Mr L.A Ntshinga BComm External N/A 1 July 2011 N/A 5
124 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
12. AUDIT COMMITTEE REPORT
We are pleased to present our report for the financial year ended 31 March 2014.
Audit Committee Responsibility
The Audit Committee reports that it has complied with the responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1.13. The Committee has adopted an appropriate formal terms of reference as its audit committee charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.
The Effectiveness of Internal Control
The review of the effectiveness of the system of internal controls by the Audit Committee is informed by reports submitted by external audit, internal audit and management. The development and maintenance of an effective internal control system is the responsibility of management.
The Audit Committee has drawn the attention of management to significant issues that have been raised in the previous year audit report and management report of the Auditor General as well as matters raised in the reports of internal audit in the current financial year. Management have expressed their commitment in dealing with these issues.
The Committee is satisfied that a system of internal controls has been put in place by the Department and that these controls have functioned partially during the period under review. The Audit Committee and the Department is aware that there is a need for improvement in the internal controls and the adherence to these controls, the Audit Committee is committed to assisting the department in this regard.
A risk assessment was carried out during the year under review and the internal audit plan was developed based on this risk assessment. As noted above, certain weaknesses were identified and reported upon by Internal Audit, these weaknesses were reported to, and discussed with management.
The following areas were covered by internal audit during the year under review:
. Performance information
. Risk management
. Financial management
. Asset management
. Supply Chain & Contracts Management
. Projects Approval process
. Projects and Grant Management
The following are still areas of concern, although management has made some progress in terms of addressing them:
. Commitments . Financial and Performance reporting . Irregular expenditure . Immovable Asset Register . Timely implementation of findings from assurance providers.
125 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
In-Year Management and Monthly/Quarterly Report
The Audit Committee has noted the content and quality of the monthly / quarterly financial reports prepared and issued by the Department during the year under review, in compliance with the statutory reporting framework. The Committee raised concerns with management in respect of the quality of interim financial statements, immovable assets, commitments, audit of performance objectives (AOPO) and housing inventory.
Evaluation of Financial Statements
The Audit Committee has reviewed the draft Annual Financial Statements that were submitted for audit, the areas of concern identified in this review were communicated with management. In addition the Audit Committee reviewed the audited financial statements for the 2013/14 financial year. The process included a review of the accounting policies and practices, and any changes thereto.
Auditor General’s Report
The Committee has reviewed the department’s implementation plan for audit issues raised in the prior year. The Committee is satisfied with the plan, but have communicated concerns to management in the following areas;
. Commitments and lease commitments . Quality of annual financial statements and annual report . Irregular expenditure
The Audit Committee has discussed the management report, audit report and the audited financial statements for the 2013/14 financial year. The Audit Committee concurs with the Auditor General’s conclusions on the Annual Financial Statements and confirms that there are no unresolved issues arising from the audit.
Appreciation
The Committee would like to take this opportunity of expressing its sincere appreciation to the Member of Executive Council, Head of Department, the management of the Department, Internal Audit and the AGSA for their support and co-operation during the year under review.
Gaehumelwe E. Diutlwileng Chairperson of the Audit Committee Eastern Cape Department of Human Settlements 31 July 2014
126 PART D HUMAN RESOURCE MANAGEMENT
127 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
1. INTRODUCTION
The information contained in this part of the annual report has been prescribed by the Minister for the Public Service and Administration for all departments in the public service.
2. OVERVIEW OF HUMAN RESOURCES
The department closed the year with a total establishment of 580 post in PERSAL system. Out of the 580 post it had filled 509 posts excluding 49 contract posts. We managed to upscale our recruitment drive during the year and registered 65 appointments which included both vacated posts and newly activated posts, which rose out of the departmental reassignment drive in order to align employee to areas within their competence.
In addition to the above, the Department has conducted a re-assignment exercise which was aimed at facilitating proper placement of the existing personnel in order to align employees competencies to the relevant functions.
The work environment demonstrated significant improvement on employer/employee relations to the extent where employee grievances have been reduced significantly. This also signals an improvement of ownership of HR issues by management.
Human Resource priorities for the year under review and the impact of these priorities
- Recruitment of funded vacated and newly activated positions - Upscale Employee Wellness support - Improvement of Performance management Development System. - Improvement of employee skills
Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce
As part of attraction and retention of workforce, the department facilitated improvement in the implementation of PMDS for recognition of employee performance. Managers were trained on how to implement the system together with staff. We also improved on the turnaround time in consolidating and finalising the annual performance reviews for the previous year.
The department also conducted staff recognition awards toward enhancement of staff morale and changing of staff attitudes towards its employer so that they may view it as an employer of choice. Team building was conducted through effective sports programme which brought in an element of uniting staff from all regional offices and head office. This promoted internal networking and a spirit of belonging to our employees.
Employee performance management framework
The department has started implementing the revised Provincial Performance Management and Development system with effect from the 2014/15 financial year. We have trained staff from January till February 2014 through workshop on the policy amendments. A notable improvement has been registered on contracting of employees including an effective moderation process for performance assessments since the capturing of Performance agreements on Persal is introduced. This may be evidenced from the fact that there were no appeals submitted for the year 2012 - 13 which was moderated in 2013/14.
128 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Employee wellness programmes
A comprehensive employee wellness programme has been implemented which provides support to employees 24/7 through ICAS. On the HIV and AIDS programme, 365 employees have been exposed to awareness raising programmes and 168 employees have undergone voluntary counselling and testing. A total of 451 employees have undergone health screenings and this has assisted in improving the attitude of employees in dealing with their health profiles.
Achievements
- Recruitment of 56 permanent posts and 49 contractual posts. - We have trained 435 employees on a variety of training programmes that are aligned to our HRD plan - We conducted staff recognition awards to build morale and motivate employees. - Established main registries in the Joe Gqabi and Chris Hani regions. - Conducted awareness sessions to 365 employees and 168 have undergone voluntary counselling and testing - Improved employment equity profile on gender in the SMS level from 48% female representation at end 2013/14 and improved to 49% by end 2013/14. We have maintained the equity profile of persons with disability at 1%, we are striving towards meeting our target of 2%.
Challenges faced by the department
- The available human resource does not correspond to the workload demand - Unavailability of Compensation of Employees budget for activation of vacancies - The department still needs to upscale its focus on employment equity for persons with disabilities. - Lack of skill on line functions i.e. monitoring skill at Project Level
Future Human Resource plans / goals
- Finalise and implement the reviewed organogram - Continue with recruitment of funded vacancies - Design and Implement culture change programme - Training of Technical Staff on Project Management
129 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
363 518 394 352 386
(R’000) 0 0 0 0 0 0 0 69 148 266 503 820 cost per employee cost per employee Average personnel personnel Average employee (R’000) Average personnel cost per
68% 4.84% 8.75% 80.36% 80.87%
xpenditure e as a % of total
Personnel Expenditure Expenditure Personnel 0 0 0 0 0 0 0 44 53 70 166 253
No. of employees
0 0 53 1100 1 047
SpecialServices Professional and and Professional Expenditure (R’000)
0 0 0 0 0 0 0
2% 3% 20% 56% 19%
50 30 222 1 267 1,569 (R’000) %total of personnelcost Training Expenditure Training
202 0 0 0 0 0 0 0 517 ,225
4 825 6 44 43 454 8 089 127 227 75 914 11 922 (R’000) 130 300 226 Personnel Expenditure Expenditure Personnel PersonnelExpenditure (R’000)
14 835 10 003 (R’000) 111 627 16) 2 691 523 2,827,988 -
Total Expenditure Expenditure Total 12) - 8) -
2)
-
Salary band 16) - 2) 5) 8) 12) - - - -
5) -
evels 1
lled (Levels 1
Periodical Remuneration AbnormalAppointment Contract (L Contract (Levels 3 Contract (Levels 6 Contract (Levels 9 Contract (Levels 13 Lower Lower ski 3 (level Skilled 6 (levels skilled production Highly 9 (levels supervision skilled Highly Senior management and Top (levels 13 TOTAL Programme 1 Programme 2 Programme 3 Programme 4 Programme 3.1. Personnel related expenditure 2014 March 31 to 2013 April 1 period the for programme by expenditure Personnel 3.1.1 Table 2014 Aprilto March Table 31 3.1.2 band1 salary Personnel 2013costsby period the for RESOURCES OVERSIGHT HUMAN STATISTICS 3.
130 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
2.21% 2.56% 2.83% 2.65% 3.45%
0 0 0 0 6% 3% 1% 10% costs costs
% of personnel of personnel % Medical aid as a 386 Medical aid as % a of personnel costs costs of personnel
0)
Medical Aid employee (R’000)
380 265 Medical Aid
2 471 4 684
0 0 0 0 Average personnel cost per 638 641 2 493 4 028 7 800 Amount (R’00 Amount Amount (R’000) Amount
0 0 0 0 7% 3% 3% 8%
2.85% 1.32% 4.40%
costs costs
32.28% 586 HOA as HOA a % of personnel of personnel 4.05%
No. of employees HOA as HOA a % of personnel costs costs personnel
0 0 0 0 196 440 435 1 471 3 840 3 417 3 183 5 343
Home Owners Allowance
Amount (R’000) Amount Home Owners Allowance 9 162 Amount (R’000) Amount
0 0 0 0 0 100%
costs costs 0.12% 0.01%
0.08% 0.14% 0.06%
of personnel of personnel Overtime a as % costs 0.06% %total of personnelcost
of personnel of personnel vertime a as % Overtime O
0 0
12 0 0 0 0 0 5 130 62 76 Overtime
Amount (R’000) Amount 142
Amount (R’000) Amount
226 225
0 0 0 0 91% 83% 91% 94% costs costs
59.81% 70.91% 79.04% 70.85% of personnel of personnel Salaries as a % PersonnelExpenditure (R’000)
87.64% Salaries
personnel costs costs personnel
Salaries as ofa %
0 0 0 0
5 441 19 283 Salaries 40 176 39 396 1
7 087 66 763 10 519 113 890 Amount (R’000 Amount
- 198 259 8)
-
Amount (R’000 Amount 16) -
Salary band 16) - 8) 12)
- - 2) 5) - -
3 Salary Bands
Contract (Levels 9 Contract (Levels 13 Highly skilled production (levels 6 (levels skilled production Highly 9 (levels supervision skilled Highly 12 Seniormanagement (level 13 Contract (Levels 6 Skilled (level 1 (level Skilled 3 (level Skilled Programme 4 TOTAL 201 March 31 to 2013 April 1 period the band for salary by Medical Aid and Allowance Owners Home Overtime, Salaries, 3.1.4 Table Programme 1 Programme 2 Programme Total 2014 March 31 to 2013 April 1 period the for programme by Aid Medical and Allowance Owners Home Overtime, Salaries, 3.1.3 Table Programme
131 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 3% costs
% of personnel of personnel % Medical aid as a
0)
Medical Aid
1 0 3 45 49
0 7 800 establishment Amount (R’00 Amount
Number of employees additional to the to additional of employees Number
0 4% costs HOA as HOA a % of personnel of personnel
0% 14% 10% 12% 12% Rate
Vacancy Vacancy 0 9 162 Home Owners Allowance Amount (R’000) Amount
2 0 71 28 41
No No of
0 Vacancies costs 0.06%
number number of employees, the vacancy rate, and whether there are any staff that are of personnel of personnel
Overtime a as %
Overtime
0 99 18 20 143 509 172 2 Amount (R’000) Amount
Number of posts filled of posts Number
92% 100% costs
of personnel of personnel Salaries as a %
Salaries
20 20 200 340 580 4 825
209 121 establishment Amount (R’000 Amount Number of posts on approved approved on of posts Number
Salary Bands
additional to the establishment. establishment. the to additional variables: key three of terms in presented is information This - programme - band salary - critical occupations The following tables summarise the number of posts on the establishment, the The tables in this section summarise the position with regard to employment and vacancies. vacancies. and employment to regard with position the summarise section this in tables The
Table 3.2.1 Employment and vacancies by programme as on 31 March 2014 March 31 on as programme by vacancies and Employment 3.2.1 Table PROG 3 PROG 4 Total Programme PROG 1 PROG 2 AbnormalAppointment Total 3.2. and Employment Vacancies
132 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
mployees mployees
0 0 1 1 1 1 0 0 0 47 49 47 49 ablishment establishment est additional to the to the additional additional to the to the additional Number of e Number Number of employees of employees Number
4% 8% 0% 0% 4% 13% 15% 19% 12% Rate 19% 15% 11% 12% Rate Vacancy Vacancy Vacancy Vacancy
2 0 0 2 11 19 26 13 71 12 27 30 71 No No of Vacancies Vacancies No of Vacancies No of
2 0 51 56 51 53 122 128 150 509 155 250 509
Number of posts filled of posts Number Number of posts filled of posts Number
0
2 0 53 69 63 55 133 147 176 580 182 280 58 establishment Number of posts of posts Number on approved establishment Number of posts on approved approved on of posts Number
12)
- 8) - 16) -
The CORE classification, as prescribed by the DPSA, should be used for completion of this table. table. this of completion for used be should the by DPSA, prescribed as classification, CORE The 2) - Critical occupation Critical
12
-
Notes: 10 8 5) - - -
LEVEL 9 LEVEL 7 BELOW AND 6 LEVEL TOTAL TOP MANAGEMENT TOP SMS LEVEL 11 Highly skilled supervision (9 supervision skilled Highly Seniormanagement (13 Total 2014 March 31 on as occupations critical by vacancies and Employment 3.2.3 Table Lower Lower skilled ( 1 Skilled(3 (6 skilled production Highly Table 3.2.2 Employment and vacancies by salary band as on 31 March 2014 March 31 on band as salary by vacancies and Employment 3.2.2 Table band Salary
133 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0% 7% 7% 0% 0% 0% 5% 4% 5% 4% 0% 11% % % of SMS posts vacant % % of SMS posts vacant % of SMS posts vacant s
0 1 3 4 0 0 0 2 2 0 0 0 2 2 0 vacant vacant vacant Total number of SMS posts posts SMS of number Total Total number of SMS post SMS of number Total posts SMS of number Total
osts filled osts 0% 0% 0% 95% 96% 95% 96% 89% 93% 93% 100% 100% 100% 100% 100%
% of SMS posts filled posts SMS of % p SMS of % % of SMS posts filled posts SMS of % of Jan 9of monthsSept of 2014 for 2014). (end st
1 1 9 1 1 8 1 1 9 42 53 42 53 41 51 posts filled posts filled posts posts filled posts Total number of SMS SMS of number Total Total number of SMS SMS of number Total SMS of number Total
13
1 1 9 1 1 9
44 55 44 55
1 1 9 44 55 SMS SMS posts Total number of of number Total of number Total funded SMS posts SMS funded funded SMS posts SMS funded Total number of funded funded of number Total
14
Filling of SMS Posts SMS of Filling
Table 3.3.2 SMS post information as at 30 September 20 post 30 at as September Table 3.3.2information SMS
Salary Level 16 Salary Level 15 incl. Head of Department Salary Level 14 Salary Level 13 TOTAL NOTE: TOTAL 1 31 2014 April 2013 postsperiod to March the for of SMS Table filling 3.3.3 and Advertising SMS Level SMS SMS Level Salary Level 16 Salary Level 15 incl. Head of Department Salary Level Salary Level 13 Salary Level 14 Salary Level 13 TOTAL SMS SMS Level Salary Level 16 Salary Level 15 incl Head of Department 3.3 post 31 2014 at as March Table 3.3.1information SMS The HOD’s contract expired on the31st of December and was renewed from the 1 was the renewed Thefrom on contract HOD’s and the31st of expired December
134 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
within 12 months
months months after being vacant.
12
advertised withinadvertised 6 months after being vacant filledand
hin six months
The following table summarises the The number summarises of table following jobs that during were the evaluated The review. under year also table statisticsprovides on of number the posts that downgraded. or upgraded were None, the department complied. Reasonsfor vacancies not filledwithin six months Wecomplied withhave PSR 2001, that posta must be 3.4 Job Evaluation within 12 months. posts SMS within fortimeframes prescribedfilling complying with for the not taken stepsTable 3.3.5 31 Disciplinary for 2014 12 2013 to the March 1 months period April Reasonsfor vacancies not advertised six withinmonths Reasonsfor vacancies not advertised six withinmonths Wecomplied withhave PSR 2001, that posta must be withinadvertised Reasonsfor vacancies not filledwit Wecomplied withhave PSR 2001, that posta must be withinadvertised 6 months after being vacant filledand Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS – Advertised within 6 months and filled within 12 months after becoming vacant for the for vacant becoming after months 12 within filled and months 6 within SMS –Advertised vacant funded of filling the with complied having not for Reasons 3.3.4 Table 2014 March 31 to 2013 April 1 period
135 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 evaluated % of posts of % posts
Posts downgraded Posts
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Number
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
ed evaluated % of posts of % posts
Posts Upgrad Posts
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Number
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 bands bands
% of posts of posts % evaluated salary by
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Evaluated Number of Jobs of Jobs Number
0 9 1 1 0 0 0 0 0 0 0 0 63 44 182 284 580 on approved on approved establishment Number of posts of posts Number
8) -
2)
-
2) 5) 8) 12)
- - - - 5) -
2) 1 - act (Levels 3
Contract (BandA) Contract (BandB) Contract (Band C) Contract (Band D) Total Senior ManagementService Band D Contract (Levels 1 Contr Contract (Levels 6 Contract (Levels 9 Highly skilled supervision skilled Highly (Levels 9 Senior ManagementService Band A Senior ManagementService Band B Senior ManagementService Band C Lower Lower Skilled (Levels1 Skilled (Levels 3 6 (Levels skilled production Highly Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the bandfor Salary by Evaluation Job 3.4.1 Table band Salary
136 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 19 22 41 Total
% 0 None None None None
Reason for deviation for Reason
1 1 2 White
1 1 0 0 0 0 Coloured Remuneration level Remuneration
0 0 0
Asian
0 0 0 0
Job evaluation level 17 21 38 African
0 0 0 0 Number of employees Number
Beneficiary
Note:
circular. per as The DPSA the below were employees upgraded The The following table provides a summary of the number of employees whose vacant.be also positions could upgraded posts were the of some and posts upgraded new the into due absorbed are automatically employees to all not since upgraded their posts of number the post from differ being upgraded. The number of employees might 2014 March 31 to 2013 April 1 period upgradedthe for being posts their to due upgraded were positions whose employees of Profile 3.4.2 Table Percentage of total employed 2014 March 31 to 2013 April 1 period the for occupation by by evaluation job determined those than higher levels salary with Employees 3.4.3 Table Occupation NONE Female Male Total disability a with Employees
137 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0 0 25 Total 4.2 3.9 3.8 3.9 Turnover rate Turnover
0 0 0 0
0
White
0 0 0 0 0 0 2 6 0 0 0 0 0 8 department department
Terminations and and Terminations transfers out of the out of transfers
0 0 0 0 Coloured
0 0 6 0 0 0 0 0 16 10
department
0 0 0 0
transfers into the into the transfers Asian Appointments and and Appointments 4
t beginning of t beginning
0 0 0 0
0 6 7 0 1 1 0 27 76 April 2013 April 118 African period- Number of employees a of employees Number
12) - 8) -
2) -
5) -
Senior ManagementService Bands C Senior ManagementService Bands D Contracts Total Skilled (Levels3 6 (Levels skilled production Highly 9 (Levels supervision skilled Highly Senior ManagementService A Bands Senior ManagementService B Bands Salary BandSalary Lower skilled ( Levels 1 Employees with a disability a with Employees Total ofNumber Employees whose remuneration exceeded the determinedgrade job by evaluationin2013/1 3. 5 Changes Employment 2014 March 31 to 2013 April 1 period the for band salary by rates turnover Annual 3.5.1 Table Beneficiary Female Male Total The following table summarises the beneficiaries of the above in terms of race, gender, and disability. and gender, race, of interms above the of beneficiaries the summarises table following The 2014 March to 31 2013 April 1 period the evaluation for job by determined those than higher levels salary have who employees of Profile 3.4.4 Table
138 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Turnover rate Turnover
0 2 0 2 0 0 0 1 1 0 1 7 0 0 0 1 0 0 0 2 1 0 38 2
of the department department of the Terminations and transfers out out transfers and Terminations
0 2 0 1 0 0 1 0 1 1 0 0 0 0 0 0 1 0 0 0 3 76 65
the department the Appointments and transfers into into transfers and Appointments
3 0 1 1 9 2 2 0 8 4 9 1 4 3 1 7 4 8 39 1 80 17 557 318 April 2013 April - Number of at employees beginning of period of beginning
,Permanent anent anent
conomics related,Permanent Annual Turnover rates by Critical Occupation for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the for Occupation Critical by rates Turnover Annual
.2
Other occupations, Perm Quantitysurveyors & rela prof notclass elsewhere, Permanent Secretaries& other keyboard clerks, operating Permanent Seniormanagers, Permanent TOTAL Human resources related Information technology related,Permanent Inspectors of apprentices works vehicles,and Permanent Messengers porters deliverers,and Permanent Motor vehicle drivers, Permanent Finance e and Financial and related professionals, Permanent Financial clerks creditand controllers,Permanent Human resources& organisational development& relate prof,Permanent Cleaners in offices workshops hospitals etc.,Permanent Permanent clerks), inform receipt clerks(switch inform Client Communication informationand related,Permanent Engineering sciences related, Permanent Engineers and related professionals, Permanent Administrative related, Permanent Permanent etc., machinery metal building in the All artisans Architects town and traffic planners, Permanent Cartographic surveying and related technicians, Permanent Table 3.5 Occupation Critical
139 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0% 0% 0% 0% 0% 32%
employees by occupation occupation by employees
Notch progression as a % of % a as progression Notch 4% 0% 0% 0% 0% 2% 0% 0% 0% 0%
49% 45% % of Total Resignations of Total %
0 0 0 0 250 250 Progressions to another another to Progressions notch within level a salary
0% 0%
12% 20% 13% 13%
occupation 0 0 0 2 0 0 4 44 00 98 98 48 % % of by employees
Number
Salary levelSalary promotions a as
2 0 0 6 10 20 32 level
Promotions to another salary salary another to Promotions
0 51 53 509 155 250
Employees Employees 1 April 2013
- 8)
-
16) -
2)
- health -
5) - Promotions by critical occupation critical April by 2014 1 Promotions 2013 to March for period 31 the Occupation operationalchanges inefficiency misconduct
.4 – – – ed toilldue
Highly skilled supervision (Levels 9 (Levels supervision skilled Highly 12) Senior Management (Level 13 TOTAL Lower Lower skilled ( Levels 1 Skilled (Levels3 6 (Levels skilled production Highly Other Total employment total of % a as left who employees of number Total Table 3.5 Dismissal Dismissal Discharg Retirement Transferto other Public Service Departments Death Resignation Expiry of contract Dismissal Termination Type Type Termination 3.5.3 department theleft Reasons 31 staff 2014 April 2013 the why to period March 1 for
140 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 8 0 7 40 11 26 143 328 556 Total
0% 0% 0% 0% 0% 0%
0 4 9 1 0 0 0 0 0 1
14 employees by employees salary by bands Notch progression as a % of % a as progression Notch
White
0 1 4 1 0 0 0 0 0 6 0
0 0 0 0 0 0 Indian
Female Progressions to another another to Progressions
notch within level a salary
1 1 6 0 0 0 0 0 0 8 0 Coloured
0% 0%
0 0 1 76 5 0 0 20% 13% 13% 12% level 18 62 14 275 1 African a % of employees by salary salary by employees of % a Salary bands promotions as as bands promotions Salary
0 0 0 1 2 7 0 0 0 2
12
White
0 0 0 0 3 0 3 0 0 0 0 0 0 10 20 32 62 level Indian
Male Promotions to another salary salary another to Promotions
0 0 0 3 1 5 0 0 0 2
11 Coloured
0 51 53 509 155 250
4 0 0 8 8 0 5 14 72 227 121 Employees Employees 1 April 2013 African
-
2)
-
5)
-
Promotions by salary band for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the for band salary by Promotions
.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as at 31at as 2014 categories March occupational following the of each in disabilities) with employees (including employees of number Total .1 .5
12) 8) - -
ccupational category ccupational Total Employees with disabilities Skilled agriculture fishery and workers Craft and related trades workers Plant machineand operators and assemblers Elementary occupations managers Professionals associate and Technicians professionals Clerks Service salesand workers O Legislators, senior officials and Highly skilled supervision supervision skilled Highly (Levels 9 Senior Management (Level 13 16) Total 3.6 Equity Employment Table 3.6 Lower Lower skilled ( Levels 1 Skilled (Levels3 skilled production Highly (Levels 6 Table 3.5 BandSalary
141 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 2 51 50 563 252 208 Total
0 0 0 9 4 1 14 White
0 6 0 0 3 2 1 Indian
n 31 March 2014 March 31 n o
Female
0 9 1 2 1 4 1 Coloured
0 0 23 18 103 131 275 African
0 1 7 3 1 0 12 White
0 3 0 0 0 0 3 Indian
Male
1 2 3 4 1 0 11 Coloured
0 0 60 27 20 233 126 African -
L14) - L16) -
.2 Total number of employees (including employees with disabilities) in each of the following occupational bands bands as occupational following the of each in disabilities) with employees (including employees of number Total .2 skilled and discretionary -
Top Management(L15 Table 3.6
Semi making decision making decision defined and Unskilled Total Professionally qualified and experienced specialists midand management Skilledtechnical academicallyand qualified workers, juniormanagement, supervisors,foreman and superintendents Occupational Band Occupational Senior Management(L13
142 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 2 0 51 50 252 208 563 Total
e
0 0 0 9 4 1 0 14 Whit
0 0 0 3 2 1 0 6 Indian
Female
0 1 2 1 4 1 0 9 Coloured
0 0 0 23 18 103 131 275 African
1 7 3 1 0 0 0 12 White
3 0 0 0 0 3 0 0 Indian
Male
2 3 4 1 0 0 1 11 Coloured
0 0 0 20 60 27 126 233 African -
4 -
12 - 7-8 7-8
management9 - iormanagement, supervisors, 14 Management - 16 Management - skilled and discretionary decisionmaking 5
- ployees withployees disabilities Unskilled and defined decision making 2 making decision defined and Unskilled Total Em specialists midand Skilledtechnical academicallyand qualified workers, jun foreman superintendentsand Semi Top 15 Top Senior 13 Professionally qualified and experienced Table 31 2014 3.6.3 April2013 period to the March 1 Recruitment for Band Occupational 6 6
143 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 3 0 0 40 19 62 Total
0 0 0 4 0 0 0 4
White
0 0 0 0 0 0 0 0 Indian
0 0 0 0 0 0 0 0 Coloured
0 0 1 0 0
18 15 34
Female African
0 3 0 0 0 3 0 0 White
0 0 0 0 0 0 0 0 Indian
0 0 0 0 0 0 0 0 Coloured
2 4 0 0 0 0 15 21
Male African
7-8 7-8
14
- 16 13 -
management -
15
skilled and discretionary decisionmaking
- 12 Unskilled and defined decision making decision defined and Unskilled 3-4 Total Employees with disabilities Skilledtechnical academicallyand qualified workers, juniormanagement, supervisors, foreman superintendentsand Semi 5-6 Top Management Senior Management Professionally qualified and experienced specialists midand Table 3.6.4 Promotions for the period 1 April 2013 to 31 2014 Table to2013 March period 3.6.4 1 Promotions for April the OccupationalBand 9-
144 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
1
Total
98 0 Total 0 1 8 18 3 1 67
0
3 0 0 0 1 1 1 0 0 White White
0
0 0 0 0 0 0 0 0 0 Indian
Indian
Female Female
0
0 0 0 0 0 0 0 0 0 Coloured Coloured
1
0 1 6 0 0 0 0 43 50 African African
0 0 0 1 1 0 0 2 0 0
White White
0 0 0 0 0 0 0 0 0 0
Indian Indian
Male Male
0 0 0 1 0 0 1 0 0
0 Coloured Coloured
1 6 0 1 0 0 10 24 42
0
African African
ied ied and experienced
management -
skilled and discretionary decision
- Disciplinary action Disciplinary Dishonesty,Absenteeism. Contract (Professionally qualified), Permanent Total Disabilities with Employees 2014 March 31 Tablefor 3.6.6 April period 2013 action the to 1 Disciplinary Skilledtechnical academicallyand qualified workers, juniormanagement, supervisors, foreman superintendentsand Semi making making decision defined and Unskilled Top Management Senior Management Professionally qualif specialists midand Table 3.6.5 Terminations for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the for Terminations 3.6.5 Table Band Occupational
145 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 7 0
37 95
448 180 3 129
Total
1 0 0 0 0 0 0 09 02 05 02 White
0 0 0 0 0 0 0 0 0 01 01 Indian
0 0 0 0 0 0 0 0 06 01 05 Coloured
1 0 0 0 3 0
17 39 64 228 105 Female African
0 0 0 0 0 0 0 0
01 01 02 White
0 0 0 0 0 0 0 0 0 01 01
Indian
0 0 0 0 0 0 0 01 02 05 02 Coloured
0 0 0 4 0 1 51 57 69 16 197
Male African
Plant machineand operators and assemblers Elementary occupations Total Employees with disabilities Clerks Service salesand workers Skilled agriculture fishery and workers Craft and related trades workers Legislators, senior officials managers and Professionals Technicians and associate professionals Table 3.6.7 Skills development for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the for development Skills 3.6.7 Table category Occupational
146 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 67% 81% 75% members as % of total number of SMS SMS of number of total % as Signed performance agreements agreements performance Signed
0 0 6 34 40
Total number of signed signed of number Total performance agreements agreements performance
1 1 9 42 53 Total number of SMS members SMS of number Total
1 1 9 44 55 MS members whosubmit did not timeon wasas this affected bythe planning process ould ould be alignedwith APP, wasit delayed pendingfinalisation of the APP. Total number of funded SMS SMS posts funded of number Total
ary ary Level 15 Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as at 31 March 2014 2014 March 31 at as members SMS all for agreements Performance concluded having not for Reasons 3.7.2 Table 2014 March 31 at as agreements Performance concluded having not for members SMS against taken steps Disciplinary 3.7.3 Table Reasons No disciplinarysteps were taken against S Reasons Since the performance agreeements sh Sal Salary Level 14 Salary Level 13 TOTAL SMS SMS Level Salary Level 16 3.7 3.7 SMSMembers by Performance Signing Agreements of 2013 Agreements 31 members at as May Tableby of 3.7.1 Signing SMS Performance
147 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 Cost 9 846 7 846 12 240 12 859 14 971 14 918 16 979 12 627 15 225 18 778 136 289 Beneficiary Beneficiary (R) Average Cost per Cost Average
0 98 20 16 164 204 113 1 517 1 407 6 237 1 389 1 309 Cost (R'000) Cost
0% 42.5 100% 100% 72.7% 40.8% 39.8% 84.6% 28.6% 40.1% 38.7% 22.2%
Employment Percentage of Total
6 3 9 7 Beneficiary Profile Beneficiary 11 13 12 274 222 289 236 1082 Total Employment
for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the for
6 0 2 8 2 86 94 11 12 110 118 449 of Beneficiaries
Number
.1 Performance Rewards by race, gender and disability and gender race, by Rewards Performance .1
To encourage good performance, the department has granted the following performance rewards during the year under review. The during under year the review. rewards performance the following has granted is the terms in information presented department performance, good encourage To occupations. critical and bands salary disability), and gender, race, of
loyees with a disability
Total Blacks, Male Male Blacks, Total White, Female White, Male Emp TOTAL Asian, Male Male Asian, Coloured, Female Coloured, Male Female Blacks, Total Race and Gender Race Demographics African,Female African, Male Female Asian, 3.8 Performance Rewards Table 3.8
148 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0 0 0 0 5 455 9 927 7 000 3 833 7 500 7 000 18 810 27 000 68 192 13 285 15 000 21 633 14 800 10 800 11 667 14 714 10 000 15 000 13 000 Beneficiary Beneficiary (R) Average Cost per Cost Average
7 0 0 0 0 0 0 0
27 15 23 15 74 54 14 35 30 30 26 120 953 649 103 3289 2 182 2 006 Cost Cost Cost (R'000) Cost
0 0 0 0 0 0 0 50 75 50 2% 0% 100 47.5 31.6 37.5 62.5 29.4 33.3 53.8 66.7 37.3 50% 47% 20% 60.4% Employment Employment Percentage of Total
9 1 4 3 1 4 1 0 2 2 1 8 4 1 5 13 19 80 17 44 49 318 159 247 129 633
Total Employment Profile
Beneficiary Profile Beneficiary Beneficiary Beneficiary
3 0 7 3 2 0 2 0 1 6 2 0 0 5 5 2 0 1 1 0 30 22 96 151 116 236 Number of Beneficiaries Number
icles icles
12)
- 8) -
12) 8) - - 5) - related related professionals
ly skilled supervision (Levels 9 (Levels supervision skilled ly Inspectors of apprentices works veh and Light vehicle drivers Logistical support personnel Financial and related professionals Financial clerks creditand controllers Head of department/chief executive officer Human resources& organisat developm & relate prof Human resourcesclerks Human resources related Information technology related Cartographic surveying and related technicians Cleaners in offices workshops hospitals etc. clerks) inform recept clerks(switchb inform Client related information and Communication Community development workers Engineers and Finance economicsand related Administrative related related Administrative Architects town and traffic planners Salary BandSalary 2014 March 31 to 2013 April 1 period the for occupation critical by Rewards Performance 3.8.3 Table Occupation Critical High Contract (Levels 6 Contract (Levels 9 AbnormalAppointment TOTAL Band Salary Skilled (Levels 3 6 (Levels skilled production Highly 2014 March 31 to 2013 April 1 period Service, the for Management Senior below personnel for band salary by Rewards Performance 3.8.2 Table
149 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0
0 0 0 0 5 000 5 000 15 667 13 000 16 750 23 000 39645 236,649 39 645 (R'000) (R'000) Personnel Cost SMS SMS Cost Personnel
5 0 0
20 94 26 67 23 0 0 0 0 3309 0.1 0.1 Cost Wage Bill Wage % of SMS of SMS %
0 0 0 0 0 0 50 50 2.6 100 100 57.1 42.5 23000 23 000 Cost Beneficiary Beneficiary (R) Average Cost per Cost Average
0 0 0 0 23 23
Cost (R'000) Cost 4 8 3 1 7 1 6 39 557
0 0 0 0 2.4 1.9 Employment Employment Beneficiary Profile Beneficiary Percentage of Total
2 4 0 1 1 4 0 6 237
1 9 9 1 42 53 Total Employment Beneficiary Profile Beneficiary
0 0 0 1 0 1 r ofr Beneficiaries
Numbe
rs
SMS SMS Band Seniormanage TOTAL Messengers porters deliverersand Motor vehicle drivers Other administrat& related clerksand organisers Other administrative policy and related officers Other occupations Quantitysurveyors & rela prof notclass elsewhere Secretaries& other keyboard clerks operating TOTAL Band A Band B Band C Band D Service Senior Management band salary for by bonus), rewardsTable 3.8.4 (cash related 2014 Aprilto Performance March 1 31 for 2013 period the Band Salary Critical Occupation Critical
150 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0 0 0 0 0 0
% Change %
% Change % Change Change
0 0 0 0 0 0 0 0 0
Number Number Number
0 0 0 50% 50% 50% 50% 100% 100% % % of total
% % of total
31 March31 2014 31 March31 2013
1 1 2 0 0 0 1 1 2
Number Number Number
0 0 0 50% 50% 50% 50% 100% 100%
% % of total % of total 01 April 2013 01 April 2012
1 1 2 0 0 0 2 1 1 Number Number Number
- 8) -
Pilot
16)
- 12) -
.1 Foreign workers by salary band for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the band for salary by workers Foreign .1
Legal (other occupation) Special programmes& Total 2014 March 31 to 2013 April 1 period the for occupation major by workers Foreign 3.9.2 Table Occupation Major Highly skilled production (Lev. 6 (Lev. skilled production Highly 9 (Lev. supervision skilled Highly 12) Contract (level 9 Contract (level 13 Total Salary Band Salary Lower skilled 3.9 3.9 Foreign Workers Table 3.9
151 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
_ _ R59 R59 689.38 R833 R833 111.22 R247 572.70 R2 R2 677 860.37 R1 R1 537 487.07 Estimated Cost (R’000) Cost Estimated
_ 6 5 _ 6.8 7.4 6.7 employee Average days per
_ _ 56.8% 69.7% 68.3% 47.2% 65.9% sick leave of total of employees using %
_ _ 25 25 145 172 367
using sick leave sick using NumberEmployees of
_ _ 61% 40% 66% 65% certification % Days with Medical
_ _ 125 149 1155 1077 Total days 2506 days
2) - 16) -
5) -
16)
12) 8) - - The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use the of indication an provide following tables The service. public the within leave sick of monitoring careful for need the identified Commission Service Public The provided. also is leave the of cost estimated the cases, both In leave. disability and leave sick of
y skilled supervision supervision skilled y Top and management Senior 13- (levels Contract (Levels 13 Total Skilled (levels 3 (levels Skilled skilled production Highly 6 (levels Highl 9 (levels Table 3.10.1 Sick leave for the period 1 January 2013 to 31 December31TableJanuary 2013 period to 3.10.1 2013 1 leave for Sick the Salary Band Lower Skills (Level 1 3.10 Leave utilisation
152 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0 0 0
(R’000) mated mated Cost
0 0 0 0 22.53 19.97 21.36 21.36 20.93 Esti
0 0 0 0 0 0 employee Average days per days Average
0 0 0 0 42 50 201 247 540
0 0 0 0 0 0 % % of total employees using disability leave disability using
0 0 0 0 0 0
Number of Number
0 0 0 0 946 disability leave 4013 5276 1064 11299 Employees using Employees
0 0 0 0 0 0 certification % Days with Medical Medical with Days %
0 0 0 0 0 0 Total days January 2013 to 31 December 201 December 31 to 2013 January
12)
12) 8) 8)
- - -
16) 16) - - s 9 2) 2) - - 16),Permanent - 8),Permanent 12),Permanent - - 5) 5) - -
.3 Annual Leave the 1 Leave .3for period Annual
10
Seniormanagement (Levels 13 Contract (Levels 6 Contract (Levels 9 Contract (Levels 13 Total Lower Lower skilled (Levels 1 Skilled Levels 3 6 (Levels skilled production Highly supervision(Level skilled Highly Salary BandSalary Highly skilled supervision (Levels 9- (Levels supervision skilled Highly Seniormanagement (Levels 13 Total The table below summarises the of utilisation annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 management requires of annual leave of service. termination of time the at paid being leave accrued of levels high prevent to Table 3. Lower Lower skilled (Levels 1 Skilled (Levels 3 6 (Levels skilled production Highly Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2013 to 31 December 201 December 31 to 2013 1 January period the for permanent) and (temporary leave Disability 3.10.2 Table BandSalary
153 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0 921 0 86 86
829.00 006.25
87 25 125 employee employee as at March31 Average capped leave per per leave capped Average Average perAverage employee (R’000)
0 0 0 3 0 3 2 4 6 0 per employee Number of Employees of Number Average number of days taken taken of days number Average
0 0 1 0 1 0 0 658.00 025.00
351 683 251 100 cappedleave Total (R’000) Amount Number of Employees using Employees of Number
0 0 3 0 3 0 leave taken Total days of capped of capped days Total
utilisation of leave for the previous cycle previous for the leave of utilisation -
12) 8) - - 16) for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the for -
2) -
5) -
.5 payouts Leave .4 Capped leave for the period 1 January 2013 to 31 December 2013 December 31 to 2013 January 1 period the for leave Capped .4 10 10
lled Levels 3 Total Reason Leave payout for 2011/12 todue non Capped leave payouts terminationon ofservice for 2012/13 Current leave payout on termination ofservice for 2012/13 Highly skilled supervision(Levels 9 supervision(Levels skilled Highly Seniormanagement (Levels 13 Total taken. not was of that result asleave a employees to made payments summarise table following The Table 3. Lower Lower skilled (Levels 1 Ski 6 (Levels skilled production Highly Table 3. BandSalary
154 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
k place k place
Opportunity for HIV counselling and Testing at at Testing and counselling HIV for Opportunity HIVAwareness Campaigns the wor
Details,if yes sites all at condoms of Provisioning
Key steps taken to reduce the risk risk the to reduce taken steps Key aiders first to gloves latex of Provision
apacity BuildingSessions for employees
Peer Education Programme Managing IOD and PILIR cases Various screeningshealth Health Awareness Campaigns Compliance to OHS Act (including the management of SHE reps and first CounsellingServices Life Skills / C Sport& RecreationProgramme. HIV/ TB Awareness Campaigns HIV Counselling opportunities at all work sites
Mrs. N. Jafta Jafta N. Mrs. Director: Human Resource Management 3 employees 1 deputy ( x director; 2 assistant x directors) Budget allocated: 326 R 700 Management Wellness Health ManagementSafety & Health & Productivity Management Productivity & Health Management TB HIV and
No
X X X
Yes
g to first aid cases aid first to g being of your employees? If so, indicate - Question
ontained in Part VI E of Chapter 1 of the Public Service Regulations, .1 Steps taken to reduce the risk of occupational exposure occupational of risk the reduce to taken Steps .1 mbers to promote the health and well that availableis for this purpose. 3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of this Programme. 1. Has the department designated provisions c a member of the 2001? If SMSso, provide her/hisand position.name to implement the 2. Does the department have a dedicated unit or has it designated specific staff me the number of employees who are involved in this task and the annual budget information) required the provide and boxes (tick applicable Programmes Promotion the andTable 3.11.2 Health HIV/AIDS of Details Units/categories identified of employees beto at high risk of contracting & HIV related diseases (if any) First Aidersin the Department whilst attendin Employees due who to job requirements travel tooften their perform duties. 3.11 & Health Promotion Programmes HIV/AIDS Table 3.11
155 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
attended the
following
168 employees
where where
365 employees
A A total of
Details,if yes
sessions took place during 2013/14 financial year to mitigate
Tournament) sessionsto encourage early thereto access aiders) Sick leave analysis Various screeningshealth GEMSmedical aid diseasemanagementand programmesmarketing Health & SafetyAwareness sessions Identify manageand &Safety Health risks in the department Health & SafetyAwareness sessions andcampaigns HIVtesting opportunities at all worksites HIV/ AIDS AwarenessSessions Manage IOD cases and processes Manage PILIRcases
service counselling Confidential distribution information promotion Health Soccer a Departmental (including Activities & Recreational Sport Condom Distribution
Mrs. N. Jafta, Mrs. A.S. van Rooyen, Mr. B.E. Noyila, Ms N. Qwesha, Mr. P. P. Mr. Qwesha, N. Ms Noyila, B.E. Mr. Rooyen, van A.S. Mrs. Jafta, N. Mrs. Ndindwa, Mrs. N.Bongobi, Onceya, L. Ms G.Mr. Malapane HIV TB and ManagementPolicy reviewed provided is counselling Confidential HIV/AIDS Awareness stigma with regards to HIV/AIDS and TB. sessions. HIVtesting was available at all worksites during 2013/4 HIV. for tested with the implemented and developed was Wellness Plan A elements:
No
X X X X X
Yes
positive employees or -
Question positive positive from discrimination? If so, list the key iminate against employees theon basis oftheir HIV
-
impact of its health promotion programme? so,If list measures/indicators.these elements of measures.these 7. Does the Counselling Testing?and If so, thelist thatresults you have you achieved. department encourage its employees to undergo 8. Has the department developed Voluntarymeasures/indicators to monitor & evaluate the 5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discr status? so,If list the policies/practices employment so reviewed. 6. Has the department introduced measures to protect HIV those perceived to be HIV 4. Has the department established (a) committee(s) as contemplated in E.5 Part VI (e) of Chapter 1 provide of the names of the the members of Public the committee and the Service stakeholder(s) that Regulations, they represent. 2001? If so, please
156 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
YES
0%
0% 0% 0% 0% 0% 0% 0% 0% 0% % % of total % % of total
1 0 1 0 0 0 0 0 0 1 0 0 0 1 Number
Number
Resolution of 1 2003 Resolution of 14 2002 Date
for the period 1 April 2013 to 31 March 2014 2013 March 1 31 for April period to the for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the for
hearings
.3 Types of misconduct addressed at disciplinary hearings hearings disciplinary at addressed misconduct of Types .3 .2 Misconduct and disciplinary hearings finalised hearings disciplinary and Misconduct .2
12
The following table summarises the outcome of disciplinary hearings under within the conductedfor the review. department year disciplinary outcomeThe of the summarises table following Absenteeism Total Total Table 3. A) on annexure (based of misconduct Type Dishonesty Demotion Demotion Dismissal Not guilty Case withdrawn Verbal warning Written warning warning Final written Suspended without pay Fine Table 3.12 Outcomesof disciplinary Correctionalcounselling SubjectMatter Disciplinary Code & Proceduresfor the Public Services Grievance Rules forthePublic Services 3.12 Labour Relations Table 3.12.1 2014 31 April 2013 to March period agreements the 1 Collective for
157 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0% 0% 0% 0% % % of total
% % of total
0 0 0 0.00
2 0 0 0 2 5 0 5 Number Number
al number of persons working days lost 0 0 lost days working persons of number al Number of people suspended of people Number Number of people suspensionwho’s exceeded 60 days Average number ofsuspended days Cost (R’000)suspension of Tot 0 lost days working costs Total 0.00 pay no work no of result a as recovered (R’000) Amount Table31 2014 3.12.7 2013 suspensions to March 1 for Precautionary April period the Number of disputes dismissed Number of disputes pending lodged disputes of number Total 2014March to Tablethe 1 31 3.12.6 April 2013 actions period Strike for Number of grievances dismissed lodged grievances of number Total 2014 March 31 forTable April period 2013 3.12.,5 to the 1 logged Disputes Number of grievances resolved Number of grievances not resolved Number of grievances withdrawn Table 3.12.4 31 logged 2014 Grievances forto March period the 1 April 2013
158 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0 0 0 1 2 0 0 7 8 47 52 31 102 125 107 Total
0 0 0 0 0 0 0 0 0 0 0 0 0 0 12 33 24 12 training Internship Other forms of forms Other
7 0 0 0 0 0 0 1 2 0 0 7 8 35 19 95 102 125 other short courses courses short other SkillsProgrammes &
Training needs identified at start of the reporting period reporting of the start at identified needs Training
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Learnerships
0 8 0 0 7 4 0 0 0 0 19 21 68 75 14 12 195 133 at at 1 2013 April Number ofas employees
for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 period the for Female Male Female Male Female Male Female Male Male Female Male Female Male Female Male Female Male Gender Female
.1 Training needs identified needs Training .1
Elementary occupations Elementary Craft and related trades workers workers trades and related Craft and operators machine Plant and assemblers Service workers and sales fishery and agriculture Skilled workers Technicians and associate professionals Clerks Legislators, senior officials and and officials senior Legislators, managers Professionals Occupational Category Occupational 3.13 Skills development 3.13 development Skills development. skills to regard with department the of efforts the highlights section This Table 3.13
159 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0 0 0 269 213 482 19 42 53 71 61 18 144 102 Total
Total
ms of
45 36 81 0 0 0 2 1 0 0 0 0 0 0 0 33 33 training training Internship Other forms of forms Other Other for Other
0 0 0 0 0 0 224 177 401 19 42 53 69 60 69 18 111 other short courses courses short other SkillsProgrammes & other short courses short other SkillsProgrammes & Training provided within the reporting period reporting the within provided Training
Training needs identified at start of the reporting period reporting of the start at identified needs Training
0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 Learnerships
Learnerships
303 253 556 0 0 7 4 0 0 14 12 19 21 68 75 195 133 at at 1 2013 April as at 1 2013 April Number ofas employees Number of employees of employees Number
for the period 1 April 2013 to 31 March 2014 Aprilto March 1 31 2013for period the le
Gender Female Male Fema Male Female Male Female Male Female Male Gender Female Male Female Male Female Male
aining provided for the period the for provided aining
Craft and related trades workers workers trades and related Craft Service workers and sales fishery and agriculture Skilled workers Technicians and associate professionals Clerks Legislators, senior officials and and officials senior Legislators, managers Professionals Total Table 3.13.2 Tr Category Occupational Sub Total Occupational Category Occupational
160 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
3 4 0 0 278 239 517
Total
0% 0% 0% 100% 100%
% % of total ms of
0 0 0 0 35 34 69 training Other for Other
3 4 0 0 243 205 448
0 3 0 0 3 other short courses short other SkillsProgrammes & Number Training provided within the reporting period reporting the within provided Training
0 0 0 0 0 0 0 Learnerships
8 0 0 0 303 253 556 as at 1 2013 April Number of employees of employees Number
Male Gender Female Male Female Male Female Nature of injury on duty of injury Nature
Required basicmedical attention only Total Disablement Temporary Permanent Disablement Fatal Total Sub Total Total Plant and machine operators and and operators machine Plant and assemblers occupations Elementary Occupational Category Occupational 3.14 on Duty Injury 2014March to the 1Table 31 3.14.1 April 2013 duty period on Injury for
161 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
2 0
Contract valuein Rand 150 48 Total contract value in Rand 150 480 Number of Consultants from HDI groups that that groups HDI from of Consultants Number project the on work Donor and Contract value in Rand in value Contract Donor and Total contract value in Rand
1 month duration Total days Work 1 month Duration days Work Duration days Work duration Total days Work
Percentage management by HDI groups HDI by management Percentage Male1
for the period 1 April 2013 to 31 March 2014 Aprilto March 1 31 for 2013 period the
consultants
Total Number of consultants that worked on worked that of consultants Number Total project individual Total 2 consultants individual Total 2 Total Number of consultants that worked on project on worked that of consultants Number Total
Percentage ownership by HDI groups HDI by ownership Percentage 100 % female
.1 Report on consultant appointments using appropriated funds funds appropriated using appointments consultant on Report .1
N/A projects of number Total N/A Project Title Project OSD 2014 March 31 to 2013 April 1 period the funds for Donor using appointments consultant on Report 3.15.3 Table Title Project Total number of projects of number Total 1 March 31 to 2013 April 1 period the Individuals for (HDIs) Disadvantaged Historically of terms in funds, appropriated using appointments consultant of Analysis 3.15.2 Table 2014 Project Title Project OSD 3.15 Utilisation of Consultants Table 3.15
162 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
0 0 0 0 0 0 by department by
Number of packages approved approved of packages Number
Number of Consultants from HDI groups that that groups HDI from of Consultants Number project the on work
0 0 0 0 0 0
supported by MPSA by supported Number of applications of applications Number
0 0 0 0 0 0 referred to the MPSA to the referred Number of applications of applications Number Percentage management by HDI groups HDI by management Percentage
0 0 0 0 0 0 Number of applications received of applications Number
Percentage ownership by HDI groups HDI by ownership Percentage
12) - 8) -
5)
–
16) - 2) -
Highly skilled production (Levels 6 (Levels skilled production Highly 9 (Levels supervision skilled Highly Senior Management (Levels 13 TOTAL Salary Band Salary Lower skilled (Levels 1 Skilled Levels (3 N/A 3.16 2014 March 31 to 1 2013 period the April for packages severance initiated employee of Granting 3.16.1 Table Packages Severance Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2013 to 31 March 2014 March 31 to 2013 April 1 (HDIs) period the for Individuals Disadvantaged Historically of terms in funds, Donor using appointments consultant of Analysis 3.15.4 Table Title Project
163 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
e e landlords.
r r 2013 DATE: 8 May 8 2013 May 25 February 2014 3 Septembe 20 November 2013
ontinuous process of negotiation with WorksPublic and the respective landlords. INTERVENTION: In c Incontinuous process of negotiation with WorksPublic and the respectiv Incontinuous process of negotiation with WorksPublic and the respective landlords.
14 March 2014. Nine (9) Health & Safety Information presentations took place throughout the department department the throughout place took presentations Information Safety & Health (9) Nine 2014. March 14 –
st th rd nd
1 4 3 2 QUARTER:
Office. buildings. office regional at registers No fire equipment IDENTIFIED RISK: in office regional Mandela/Cacadu Nelson the except buildings office all at Plans No evacuation Elizabeth Port exitsEmergency lockedwithout break glass with at units all officekey buildings Headexcept 10 the on held were campaigns awareness Safety and Health and were attended by 302 employees attended. employees 302 by attended were and 3.17 and Environmental Health, Issues Safety basis. a on monthly Safety publications) related related (Health & information & Functionaries updatedSafety and HealthmentoredAppointed & Health Safety with were dates: following the on place took meetings committee safety and health Quarterly Risk Identification Hazard and addressed: and checklists the from identified were risks following The
164 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
ds to HIV/AIDS and TB. A total of and A total of ds HIV/AIDS TB. to . participated in the screenings inthe participated sessions during 2013/14 financial year to mitigate stigma with regar with stigma mitigate to year financial 2013/14 during sessions
cases were reported from the regional offices. offices. regional the from reported were cases 43 employees 43 No HIV/AIDS Awareness HIV/AIDS
were attended to during 2013/14. 2013/14. during to attended were attended the sessions. sessions. the attended
were distributed during the 2013/14 financial year throughout the province at all work site. work all at province the year throughout financial 2013/14 the during distributed were took place during 2013/14 at Head Office where where Office Head at 2013/14 during place took OR Tambo Regional Offices to temporary accommodation while renovations are under way at the Botha Sigcau building. Sigcau Botha the at way under are renovations while accommodation temporary to Offices Regional Tambo OR Chiselhurst. at premises new to offices regional BCM/Amathole of Relocation 24 First Aid cases Aid First 24 poster andHead HIV/TB/STI at exhibition Office offices regional and pamphlets TB STI at distributed Office Head
Condom Distribution condoms 9493 TB screenings First Aid Cases A total of Additionally the Employee Wellness Office also assisted with the relocation of the following departmental offices: offices: departmental following the of relocation the with assisted also Office Wellness Employee the Additionally 365 employees 365 AwarenessSTI/CONDOM Campaign 2014. February 14 on Office Head at place took exhibition poster A CampaignHIV/ TBSTIAwareness and HIV/Aids TB Management and following the had WellnessOffice Employee The
165 PART E FINANCIAL INFORMATION
166 PART E FINANCIAL INFORMATION
167 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
REPORT OF THE AUDITOR-GENERAL TO THE EASTERN CAPE PROVINCIAL LEGISLATURE ON VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS
REPORT ON THE FINANCIAL STATEMENTS
Introduction
1. I have audited the financial statements of the Eastern Cape Department of Human Settlements set out on pages 174 to 209 which comprise of the appropriation statement, the statement of financial position as at 31 March 2014, the statement of financial performance, statement of changes in net assets and statement of cash flows for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information.
Accounting Officer’s Responsibility for the Financial Statements
2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the Modified Cash Standard prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA)and the Division of Revenue Act of South Africa, 2013 (Act No.2 of 2013) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-General’s Responsibility
3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Eastern Cape Department of Human Settlements as at 31 March 2014 and its financial performance and cash flows for the year then ended, in accordance with the Modified Cash Standards prescribed by the National Treasury and the requirements of the PFMA and DoRA.
168 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Emphasis of Matters
7. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Restatement of Corresponding Figures
8. Material misstatements in the corresponding figures relating to contingent assets as disclosed in note 17 and irregular expenditure as disclosed in note 23 were identified by the department and restated in the financial statements.
Irregular Expenditure
9. As disclosed in note 23 to the financial statements, the department incurred irregular expenditure of R12.9 million during the year ended 31 March 2014 for which goods and services were received. This was as a result of non-compliance with procurement requirements. In addition, R431,2 million of the irregular expenditure incurred in the prior year was still awaiting condonation at 31 March 2014.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
10. In accordance with the PAA and the general notice issued in terms thereof, I report the following findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report, non-compliance with legislation as well as internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.
Predetermined Objectives
11. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for programme 3: housing development presented on pages 68 to 93 of the annual performance report of the department for the year ended 31 March 2014.
12. I evaluated the reported performance information against the overall criteria of usefulness and reliability.
13. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned programme. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information.
14. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
15. I did not raise any material findings on the usefulness and reliability of the reported performance information for programme 3: housing development.
Additional Matters
16. Although I raised no material findings on the usefulness and reliability of the reported performance information for the selected programme, I draw attention to the following matters:
169 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
Achievement of Planned Targets
17. Refer to the annual performance report on pages 36 to 101 for information on the achievement of the planned targets for the year.
Adjustment of Material Misstatements
18. I identified material misstatements in the annual performance report submitted for auditing on the reported performance information for programme 3: housing development. As management subsequently corrected the misstatements, I did not raise any material findings on the reliability of the reported performance information.
Compliance with Legislation
19. I performed procedures to obtain evidence that the department had complied with applicable legislation regarding financial matters, financial management and other related matters. My findings on material non- compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows:
Annual Financial Statements and Annual Report
20. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework, as required by section 40(1)(a) of the PFMA, as material misstatements in disclosure items identified by the auditors in the submitted financial statements, were subsequently corrected. The corrected material misstatements resulted in the financial statements receiving anunqualified audit opinion.
Strategic Planning and Performance Management
21. Effective, efficient and transparent systems of risk management and internal control with respect to performance information and management were not maintained as required by section 38(1)(a)(i) of the PFMA.
Expenditure Management
22. Effective steps were not taken to prevent irregular as well as fruitless and wasteful expenditure, as required by section 38(1)(c)(ii) of the PFM A and treasury regulation 9.1.1.
Internal Control
23. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation.The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on non-compliance with legislation included in this report.
Leadership
24. Although the leadership performed their oversight responsibilities relating to the department’s control environment, they did not adequately ensure that recurring findings were appropriately addressed in the department’s action plans.
Financial and Performance Management
25. The financial statements and annual performance report submitted for auditing were subject to material amendments. This was as a result of inadequate monitoring and reviews of quarterly financial and performance reports to ensure that errors were detected and corrected in a timely manner.
170 ANNUAL REPORT FOR 2013/14 FINANCIAL YEAR VOTE 11: DEPARTMENT OF HUMAN SETTLEMENTS PROVINCE OF EASTERN CAPE
26. The department did not have an adequate internal control system in place for regularly monitoring compliance with legislation.
Governance
27. The department’s risk assessment strategy was not completely effective, as the procedures designed in response to the risks identified were not properly implemented and subsequently monitored. As a result, the risks were not mitigated, which resulted in material misstatements in the identified risk areas.
28. Although the audit committee and internal audit unit discharged their duties in terms of their mandates, they did not adequately follow up recurring internal control deficiencies identified during the audit process.
OTHER REPORTS
Investigations
29. Five departmental officials were suspended for allegedly performing acts of improper conduct in relation to supply chain management, leading to the irregular awarding of contracts. The matter is currently under investigation.
30. Allegations were made that 3 departmental officials and 1 senior official conducted acts of dishonesty and fraud in the department. The officials were suspended and the matter is currently under investigation.
31. A forensic investigation was conducted into transfer payments to the Social Housing Regulatory Authority in the prior year, which was disclosed as irregular expenditure. Funds paid where no value was received are currently being recovered.
East London 31 July 2014
171 ANNUAL FINANCIAL STATEMENTS
172 ANNUAL FINANCIAL STATEMENTS
173
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
Table of Contents
Appropriation Statement 176 - 186
Notes to the Appropriation Statement 187
Statement of Financial Performance 188
Statement of Financial Position 189
Cash Flow Statement 190
Notes to the Annual Financial Statements (including Accounting Policies) 191 – 210
Annexures 211 - 219
174 DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
APPROPRIATION PER PROGRAMME 2013/14 2012/13 APPROPRIATION STATEMENT Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of Appropriation Expenditure final appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 1. ADMINISTRATION Current payment 109,113 - (303) 108,810 108,542 268 99.8% 112,796 112,763 Transfers and subsidies 36 - (27) 9 9 - 100% 44 44 Payment for capital assets 3,249 - (958) 2,291 1,343 948 58.6% 3,242 3,242 Payment for financial assets - - 2 2 2 - 100% 2 2 112,398 - (1,286) 111,112 109,896 1,216 116,084 116,051
175 2. HOUSING PLANNING&RESEARCH Current payment 15,045 - (258) 14,787 14,787 - 100% 17,420 17,240 Transfers and subsidies 13 - - 13 13 - 100% 200 36 Payment for capital assets 150 - (115) 35 35 - 100% - - 15,208 - (373) 14,835 14,835 - 17,620 17,276 3. HOUSING DEVELOPMENT Current payment 159,268 - 3,640 162,908 162,086 822 99.5% 2,426,205 2,134,900 Transfers and subsidies 2,524,299 - (125) 2,524,174 2,524,174 - 100% - - Payment for capital assets 7,108 - (1,795) 5,313 5,263 50 99.1% - - 2,690,675 - 1,720 2,692,395 2,691,523 872 2,426,205 2,134,900 4. HOUSING ASSET MANAGEMENT Current payment 8,691 - 444 9,135 9,135 - 100% 8,476 8,454 Transfers and subsidies 91 - - 91 91 - 100% 190 190 Payment of Capital Assets 1,282 - (505) 777 777 - 100% 517 539 10,064 - (61) 10,003 10,003 - 9,183 9,183 Subtotal 2,828,345 - - 2,828,345 2,826,257 2,088 99.9% 2,569,092 2,277,410
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
APPROPRIATION PER PROGRAMME 2013/14 2012/13 APPROPRIATION STATEMENT Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of Appropriation Expenditure final appropriation
Statutory Appropriation
Current payment 1,735 - - 1,735 1,735 - 100% 1,652 1,652 TOTAL 2,830,080 - - 2,830,080 2,827,992 2,088 99.9% 2,570,744 2,279,062
2013/14 2012/13 176 Final Actual Final Actual Appropriation Expenditure Appropriation Expenditure
TOTAL (brought forward) 2,830,080 2,827,992 2,570,744 2,279,062
Reconciliation with statement of financial performance
ADD
Departmental receipts 7,381 5,058
Actual amounts per statement of financial performance (total revenue) 2,837,461 2,575,802
Actual amounts per statement of financial performance (total expenditure) 2,827,992 2,279,062
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
Appropriation per economic classification
2013/14 2012/13
Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments Compensation of employees 224,723 - - 224,723 224,495 228 99% 199,558 199,361 Goods and services 67,087 - 3,415 70,502 69,641 861 98.8% 69,140 68,481 Interest and rent on land 307 - 109 416 416 - 100% - - Transfers and subsidies 177 Households 2,524,439 - (152) 2,524,287 2,524,287 - 100% 2,293,995 2,003,147 Payments for capital assets Machinery and equipment 11,789 (3,374) 8,415 7,417 998 88.1% 8,049 8,071 Payments for financial assets - - 2 2 2 - 100% 2 2 Total 2,828,345 - - 2,828,345 2,826,258 2,088 99.9% 2,570,744 2,279,062
Statutory Appropriation 2013/14 2012/13 Direct changes against the Provincial Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Revenue Fund Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Member of executive committee 1,735 - - 1,735 1,735 - 100% 1,652 1,652 Total 1,735 - - 1,735 1,735 - 100% 1,652 1,652
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
Details per programme 1-ADMINISTRATION 2013/14 2012/13 APPROPRIATION STATEMENT Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of Appropriation Expenditure final appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 1. OFFICE OF THE MEC Current payment 4,718 (117) (303) 4,298 4,298 - 100% 4,108 4,108 Payment for capital assets 64 - (64) ------
2. CORPORATE SERVICES Current payment 104,395 117 - 104,512 104,244 268 99.7% 108,688 108,655 178 Transfers and subsidies 36 - (27) 9 9 - 100% 44 44 Payment for capital assets 3,185 - (894) 2,291 1,343 948 58.6% 3,242 3,242 Payment for financial assets - - 2 2 2 - 100% 2 2 Total 112,398 - (1,286) 111,112 109,896 1,215 98.9% 116,084 116,051
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
Programme 1 per Economic Classification 2013/14 2012/13
Program 1 Per Economic Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual classification Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation
R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000
Current payments
Compensation of employees 76,591 - (2,179) 74,412 74,184 228 99.7% 72,875 72,875
Goods and services 32,215 - 1,794 34,009 33,970 39 99.9% 41,573 41,540
Interest and rent on land 307 - 82 389 389 - 100% - - 179
Transfers and subsidies
Households 36 - (27) 9 9 - 100% 44 44
Payments for capital assets
Machinery and equipment 3,249 - (958) 2,291 1,343 948 58.6% 3,242 3,242
Payments for financial assets - - 2 2 2 - 100% 2 2
Total 112,398 - (1,286) 111,112 109,896 1,215 98.9% 117,736 117,703
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
Details per Programme 2 – HOUSING PLANNING & RESEARCH 2013/14 2012/13 Detail per sub-programme Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 2.1 ADMINISTRATION Current payment 2,953 (110) (258) 2,585 2,585 - 100% 9,132 9,131 Transfers and subsidies ------200 36 Payment for capital assets 150 - (120) 30 30 - 100% - -
180 2.2 POLICY Current payment 4,020 (414) - 3,606 3,606 - 100% 1,376 1,376 Payment for capital assets - - 5 5 5 - 100% - -
2.3 PLANNING Current payment 2,287 14 - 2,301 2,301 - 100% 2,227 2,227
2.4 RESEARCH Current payment 5,785 510 - 6,295 6,295 - 100% 4,685 4,506 Transfers and subsidies 13 - - 13 13 - 100% - - Total 15,208 - (373) 14,835 14,835 - 100% 17,620 17,276
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
Programme 2 per Economic Classification
2013/14 2012/13
Economic classification Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments Compensation of employees 12,179 - (257) 11,922 11,922 - 100% 12,435 12,258 Goods and services 2,866 - - 2,866 2,866 - 100% 4,985 4,982
Transfers and subsidies 181 Households 13 - - 13 13 - 100% 200 36
Payment for capital assets Machinery and equipment 150 - (116) 34 34 - 100% - - Total 15,208 - (373) 14,835 14,835 - 100% 17,620 17,276
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
Details per Programme 3 – HOUSING DEVELOPMENT 2013/14 2012/13 Detail per sub-programme Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 3.1 ADMINISTRATION Current payment 6,998 - (2,859) 4,139 4,139 - 100% 2,212 2,192 Payment for capital assets 300 - (300) ------
3.2 FINANCIAL INTERVENTION Current payment 14,102 - 389 14,491 13,669 822 94.3% - - Transfers and subsidies 655,723 302,982 - 958,705 958,705 - 100% - -
182 Payment for capital assets 50 - - 50 - 50 - - -
3.3 INCREMENTAL INTERVENTION Current payment 124,020 - 12,794 136,814 136,814 - 100% - - Transfers and subsidies 1,071,355 (15,749) (125) 1,055,481 1,055,481 - 100% - - Payment for capital assets 6,758 - (1,503) 5,255 5,255 - 100% - -
3.4 SOCIAL AND RENTAL Current payment 9,922 - (3,576) 6,346 6,346 - 100% - - Transfers and subsidies 166,391 (127,328) - 39,063 39,063 - 100% - - Payment for capital assets - - 8 8 8 - 100% - -
3.5 RURAL INTERVENTION Current payment 4,226 - (3,108) 1,118 1,118 - 100% 130,432 129,831 Transfers and subsidies 630,830 (159,905) - 470,925 470,925 - 100% 2,293,561 2,002,877 Total 2,690,675 - 1,720 2,692,395 2,691,523 872 100% 2,426,205 2,134,900
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
Programme 3 per Economic Classification 2013/14 2012/13
Economic classification Adjusted Shifting Virement Final Actual Variance Expenditure Final Actual Appropriation of Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments Compensation of employees 128,318 - 1,982 130,300 130,300 - 100% 107,293 107,273 Goods and services 30,950 - 1,631 32,581 31,759 822 97.5% 21,061 20,460 Interest and rent on land - - 27 27 27 - 100% - -
183 Transfers and subsidies Households 2,524,299 - (125) 2,524,174 2,524,174 - 100% 2,293,561 2,002,877
Payment for capital assets Machinery and equipment 7,108 - (1,795) 5,313 5,263 50 99.1% 4,290 4,290 Total 2,690,675 - 1,720 2,692,395 2,691,523 872 100% 2,426,205 2,134,900
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
Details per Programme 4 – HOUSING ASSET MANAGEMENT
2013/14 2012/13
Detail per sub-programme Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 4.1 ADMINISTRATION Current payment 1,854 92 - 1,946 1,946 - 100% 2,419 2,419 Payment for capital assets 132 - (105) 27 27 - 100% - -
4.2 SALE AND TRANSFER OF HOUSING PROPERTIES 184 Current payment 3,971 306 444 4,721 4,721 - 100% 3,173 3,151 Payment for capital assets 1,150 - (400) 750 750 - 100% 517 539
4.3 DEVOLUTION OF HOUSING PROPERTIES Current payment 2,754 (358) - 2,396 2,396 - 100% 2,788 2,788 Transfers and subsidies 91 - - 91 91 - 100% 190 190
4.4 HOUSING PROPERTIES MAINTENANCE Current payment 112 (40) - 72 72 - 100% 96 96 Total 10,064 - (61) 10,003 10,003 - 100% 9,183 9,183
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
APPROPRATION STATEMENT for the year ended 31 March 2014
Programme 4 per Economic Classification
2013/14 2012/13
Economic classification Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments Compensation of employees 7,635 - 454 8,089 8,089 - 100% 6,955 6,955 Goods and services 1,056 - (10) 1,046 1,046 - 100% 1,521 1,499
Transfers and subsidies 185 Households 91 - - 91 91 - 100% 190 190
Payment for capital assets Machinery and equipment 1,282 - (505) 777 777 - 100% 517 539 Total 10,064 - (61) 10,003 10,003 - 100% 9,183 9,183
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
NOTES TO THE APPROPRATION STATEMENT for the year ended 31 March 2014
1. Detail of transfers and subsidies as per Appropriation Act (after Virement):
Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A) to the Annual Financial Statements.
2. Detail of specifically and exclusively appropriated amounts voted (after Virement):
Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.
3. Detail on payments for financial assets
Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.
4. Explanations of material variances from Amounts Voted (after Virement):
4.1 Per programme Final Actual Variance Variance as a % of Appropriation Expenditure Final Appropriation
R’000 R’000 R’000 Programme 1 111,112 109,897 1,215 98.1% Programme 2 14,835 14,835 - 0% Programme 3 2,692,395 2,691,523 872 0.03% Programme 4 10,003 10,003 - 100%
4.2 Per economic classification Final Actual Variance Variance as a % Appropriation Expenditure of Final Appropriation R’000 R’000 R’000 R’000 Current payments Compensation of employees 226,458 226,229 229 99.90% Goods and services 70,502 69,641 861 1.22% Interest and rent on land 416 416 - 100% Unauthorised expenditure approved - - - 0%
Transfers and subsidies Households 2,524,287 2,524,287 - 100%
Payments for capital assets Buildings and other fixed structures - - - 0% Machinery and equipment 8,415 7,417 998 11.86%
Payments for financial assets 2 2 - 100%
4.3 Per conditional grant Final Actual Variance Variance as a % of Appropriation Expenditure Final Appropriation R’000 R’000 R’000
Human Settlements Human Settlements Dev. Grant 2,523,803 2,523,803 - 100%
186
DEPARTMENT OF HUMAN SETTLENTS VOTE 11 STATEMENT OF FINANCIAL PERFORMANCE For the year ended 31 March 2014
Note 2013/14 2012/13 R'000 R'000 REVENUE Annual appropriation 1 2,828,345 2,569,092 Statutory appropriation 2 1,735 1,652 Departmental revenue 3 7,381 5,058
TOTAL REVENUE 2,837,461 2,575,802
EXPENDITURE Current expenditure Compensation of employees 4 226,229 199,360 Goods and services 5 69,641 68,481 Interest and rent on land 6 416 - Total current expenditure 296,286 267,841
Transfers and subsidies Transfers and subsidies 8 2,524,287 2,003,148 Total transfers and subsidies 2,524,287 2,003,148 Expenditure for capital assets Tangible assets 9 7,417 8,071 Total expenditure for capital assets 7,417 8,071
Payments for financial assets 7 2 2
TOTAL EXPENDITURE 2 ,827,992 2,279,062
SURPLUS/(DEFICIT) FOR THE YEAR 9,469 296,740
Reconciliation of Net Surplus/(Deficit) for the year Voted funds 2,088 291, 682 Departmental revenue and NRF Receipts 13 7,381 5,058 SURPLUS/(DEFICIT) FOR THE YEAR 9,469 296,740
187
DEPARTMENT OF HUMAN SETTLENTS VOTE 11 STATEMENT OF FINANCIAL POSITION as at 31 March 2014
Note 2013/14 2012/13 R'000 R'000 ASSETS
Current assets 9,500 12,178
Cash and cash equivalents 10 1,307 4,198 Receivables 11 8,193 7,980
TOTAL ASSETS 9,500 12,178
LIABILITIES
Current liabilities 9,500 12,178 Voted funds to be surrendered to the Revenue Fund 12 1,215 578 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 13 581 3,906 Payables 14 7,704 7,694
TOTAL LIABILITIES 9,500 12,178
188
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11
CASH FLOW STATEMENT for the year ended 31 March 2014
CASH FLOW Note 2013/14 2012/13 R'000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 2,839,552 2,287,520 Annual appropriated funds received 1.1 2,827,473 2,277,988 Statutory appropriated funds received 2 1,735 1,652 Departmental revenue received 3 1,521 6,036 Interest received 3.3 8,823 1,844
Net (increase)/decrease in working capital (203) 382 Surrendered to Revenue Fund (14 248) (19,407) Current payments (295,870) (267,840) Interest paid 6 (416) - Payments for financial assets (2) (2) Transfers and subsidies paid (2,524,287) (2,003,148) Net cash flow available from operating activities 15 4,526 (2,495)
CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 9 (7,417) (8,071) Net cash flows from investing activities (7,417) (8,071)
Net (decrease) in cash and cash equivalents (2,891) (10,566)
Cash and cash equivalents at beginning of period 4,198 14,764
Cash and cash equivalents at end of period 16 1,307 4,198
189
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 ACCOUNTING POLICIES for the year ended 31 March 2014
Summary of significant accounting policies
The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation. Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.
1 Basis of preparation The financial statements have been prepared in accordance with the Modified Cash Standard.
2 Going concern The financial statements have been prepared on a going concern basis.
3 Presentation currency Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.
4 Rounding Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).
5 Current year comparison with budget A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.
6 Revenue
6.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective. The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.
6.2 Departmental revenue Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise. Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.
6.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when: it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and the amount of revenue can be measured reliably. The accrued revenue is measured at the fair value of the consideration receivable.
190
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 ACCOUNTING POLICIES for the year ended 31 March 2014
7 Expenditure
7.1 Compensation of employees
7.1.1 Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment.
7.1.2 Social contributions Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment. Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.
7.2 Other expenditure Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold.
7.3 Accrued expenditure payable Accrued expenditure payable is recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the department. Accrued expenditure payable is measured at cost.
7.4 Leases
7.4.1 Operating leases Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment. The operating lease commitments are recorded in the notes to the financial statements.
7.4.2 Finance leases Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment. The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:
cost, being the fair value of the asset; or the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest.
8 Cash and cash equivalents Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.
9 Prepayments and advances Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash. Prepayments and advances are initially and subsequently measured at cost.
10 Loans and receivables Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. 11 Impairment of financial assets Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements.
191
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 ACCOUNTING POLICIES for the year ended 31 March 2014
12 Payables Loans and receivables are recognised in the statement of financial position at cost.
13 Capital Assets
13.1 Immovable capital assets Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1. Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.
13.2 Movable capital assets Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1. Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.
13.3 Intangible assets Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project. Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1. Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.
14 Provisions and Contingents
14.1 Provisions Provisions are included in the disclosure notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.
14.2 Contingent liabilities Contingent liabilities are included in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably.
192
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 ACCOUNTING POLICIES for the year ended 31 March 2014
14.3 Contingent assets Contingent assets are included in the disclosure notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department
14.4 Commitments Commitments are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes. Commitments are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash.
The Honourable MEC will assume the decision making authority for the approval of project funding applications. The projects, which are funded by the Human Settlements Grant are undertaken on the basis of a partnership of cooperative governance between the relevant municipalities/ developers, the Provincial Department and the National Department. Conditional grant Commitments for which disclosure is necessary to achieve a fair presentation will be disclosed in a note if the following criteria are met:
Contracts should be non-cancellable or cancellable at significant cost and current running projects,
Contracts should relate to something other than the routine, steady, state business of the department.
Approved and contracted commitments: where the project expenditure has been approved and the contract has been awarded signed between the department and developer at the reporting date.
Approved not yet contracted commitments: where the project expenditure has been approved and the contract has not yet awarded or is awaiting finalisation at the report reporting date.
Contingent Liability: blocked or non-moving projects, where no activity has taken place for an extended period of time (three years or more). Should the close-out not be finalised during the reporting period, the value of these projects are to be disclosed as contingent liabilities.
14.5 Employee benefits Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts are not recognised in the statement of financial performance or the statement of financial position.
15 Unauthorised expenditure Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either: approved by Parliament or the Provincial Legislature with funding and the related funds are received; or approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or transferred to receivables for recovery. Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.
16 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery. Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.
193
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 ACCOUNTING POLICIES for the year ended 31 March 2014
17 Irregular expenditure Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefore are provided in the note. Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.
18 Prior period errors Material errors in respect of the recording, recognition, measurement, presentation or disclosure of elements in the financial statements not discovered until a subsequent period are corrected in the comparative information presented in the financial statements for that subsequent period.
19 Agent-Principal arrangements A municipality is an agent when the provincial department:
is still ultimately responsible for the construction of the asset(s); has the risks and rewards of ownership including construction risk; is responsible for the identification and transfer of the asset(s) to beneficiaries; and it is specified in the service level agreement/ memorandum of understanding between the two parties
1.120 Inventory Inventories that qualify for recognition must be initially reflected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition. All units at various stages and completed but not yet transferred to the beneficiaries are included as inventory. All immovable properties acquired in the normal course of business by the department, properties identified and transferred to the department by Public Works as township development property and properties transferred from the former Housing Board to the department are recognised as inventory as a result of the department’s intention to devolve the properties to municipalities and beneficiaries. Where the cost of immovable properties cannot be determined accurately, the immovable properties are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used.
21 Related party transactions Specific information with regard to related party transactions is included in the disclosure notes.
22 Key management personnel Compensation paid to key management personnel, including their family members where relevant, is included in the disclosure notes.
194
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
1. Annual Appropriation
1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:
2013/14 2012/13 Funds not Appropriation Final Actual requested/ received Appropriation Funds not Received received R’000 R’000 R’000 R’000 Administration 111,112 111,112 - 116,052 Housing Planning 14,835 14,835 - 17,276 &Research Housing Development 2,692,395 2,691,523 872 2,135,478 Housing Asset 10,003 10,003 - 9,182 Management Total 2,828,345 2,827,473 872 2,277,988
Funds not requested/not received are linked to the under-expenditure of the EPWP grant.
1.2 Conditional grants Note 2013/14 2012/13 R’000 R’000 Total grants received 30 2,526,803 2,008,046 Provincial grants included in Total Grants received 2,526,803 2,008,046
2. Statutory Appropriation 2013/14 2012/13 R’000 R’000 Member of executive committee 1,735 1,652 Total 1,735 1,652
Actual Statutory Appropriation received 1,735 1,652
3. Departmental revenue Note 2013/14 2012/13 R’000 R’000 Sales of goods and services other than capital assets 3.1 1,496 2,009 Interest, dividends and rent on land 3.2 8,823 1,844 Transactions in financial assets and liabilities 3.3 25 4,027 Total revenue collected 10,344 7,880 Less: Own revenue included in appropriation 13 2,963 2,822 Departmental revenue collected 7,381 5,058 3.1 Sales of goods and services other than capital assets Note 2013/14 2012/13 3 R’000 R’000
Sales of goods and services produced by the department 1,496 2,009 Other sales 1,496 2,009 Total 1,496 2,009
3.2 Interest, dividends and rent on land Note 2013/14 2012/13 3 R’000 R’000 Interest 8,823 1,844 Total 8,823 1,844
195
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
3.3 Transactions in financial assets and liabilities Note 2013/14 2012/13 3 R’000 R’000 Other Receipts including Recoverable Revenue 25 4,027 Total 25 4,027
4. Compensation of employees 4.1 Salaries and Wages Note 2013/14 2012/13 R’000 R’000 Basic salary 154,491 138,183 Performance award 3,413 4,443 Service Based 12,535 10,869 Compensative/circumstantial 5,312 771 Other non-pensionable allowances 22,513 20,338 Total 198,264 174,604
4.2 Social contributions Note 2013/14 2012/13 R’000 R’000 Employer contributions Pension 20,119 17,408 Medical 7,800 7,322 UIF 1 - Bargaining council 45 26 Total 27,965 24,756
Total compensation of employees 226,229 199,360
Average number of employees 628 614
196
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
5. Goods and services Note 2013/14 2012/13 R’000 R’000 Administrative fees 319 908 Advertising 688 1,041 Minor assets 5.1 182 512 Bursaries (employees) 103 177 Catering 677 530 Communication 6,807 5,797 Computer services 5.2 4,182 3,082 Consultants, contractors and agency/outsourced services 5.3 2,634 3,501 Entertainment 2 223 Audit cost – external 5.4 10,067 7,985 Fleet services 167 222 Inventory 5.5 123 - Consumables* 5.6 1,236 1,621 Housing - - Operating leases 8,415 6,704 Property payments 5.7 56 728 Travel and subsistence 5.8 25,516 21,626 Venues and facilities 2,238 1,994 Training and development 1,569 1,091 Other operating expenditure 5.9 4,660 10,739 Total 69,641 68,481
*Prior year figures of items classified as inventory have been reclassified as consumables in terms of Classification Circular 3.
5.1 Minor assets Note 2013/14 2012/13 5 R’000 R’000 Tangible assets 182 512 Machinery and equipment 182 512 Total 182 512
5.2 Computer services Note 2013/14 2012/13 5 R’000 R’000 SITA computer services 4,182 2,892 External computer service providers - 190 Total 4,182 3,082
5.3 Consultants, contractors and agency/outsourced services Note 2013/14 2012/13 5 R’000 R’000 Business and advisory services 1,100 1,922 Legal costs 1,534 1,579 Total 2,634 3,501 5.4 Audit cost – External Note 2013/14 2012/13 5 R’000 R’000 Regularity audits 10,067 7,985 Total 10,067 7,985
5.5 Inventory Note 2013/14 2012/13 5 R’000 R’000 Clothing material and accessories 123 - Other supplies 5.5.1 - - Total 123 -
197
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
5.6 Consumables Note 2013/14 2012/13 5 R’000 R’000 Consumable supplies 451 437 Uniform and clothing 10 - Household supplies 357 14 Communication accessories 1 - IT consumables 28 - Other consumables 55 423 Stationery, printing and office supplies 785 1,184 Total 1,236 1,621 5.7 Property payments Note 2013/14 2012/13 5 R’000 R’000 Municipal services - 3 Other 56 725 Total 56 728
5.8 Travel and subsistence Note 2013/14 2012/13 5 R’000 R’000 Local 25,516 21,222 Foreign - 404 Total 25,516 21,626
5.9 Other operating expenditure Note 2013/14 2012/13 5 R’000 R’000 Resettlement costs 550 1,081 Other 4,110 2,832 Total 4,660 10,739
6. Interest and rent on land Note 2013/14 2012/13 R’000 R’000 Interest paid 416 - Total 416 -
7. Payments for financial assets Note 2013/14 2012/13 R’000 R’000 Debts written off 7.1 2 2 Total 2 2
7.1 Debts written off Note 2013/14 2012/13 7 R’000 R’000 Nature of debts written off Debt written off for traffic fines 2 2 Total 2 2
8. Transfers and subsidies 2013/14 2012/13 R’000 R’000 Note Households Annex 1A 2,524,287 2,003,148 Total 2,524,287 2,003,148
198
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
9. Expenditure for capital assets Note 2013/14 2012/13 R’000 R’000 Tangible assets 7,417 8,071 Machinery and equipment 26 7,417 8,071 Total 7,417 8,071
9.1 Analysis of funds utilised to acquire capital assets – 2013/14 Voted funds Total R’000 R’000 Tangible assets 7,417 7,417 Machinery and equipment 7,417 7,417 Total 7,417 7,417
9.2 Analysis of funds utilised to acquire capital assets – 2012/13 Voted funds Total R’000 R’000 Tangible assets 8,071 8,071 Machinery and equipment 8,071 8,071 Total 8,071 8,071 9.3 Finance lease expenditure included in Expenditure for capital assets Note 2013/14 R’000 Tangible assets 4,862 Machinery and equipment 4,862 Total 4,862
10. Cash and cash equivalents Note 2013/14 2012/13 R’000 R’000 Consolidated Payment General Account 1,307 4,198 Total 1,307 4198
11. Receivables 2013/14 2012/13 R’000 R’000 R’000 R’000 R’000
Note Less than One to Older than one year three three years Total Total years
11.1 Claim recoverable Annex 3 38 7,493 - 7,531 7,534
Staff debt 11.2 128 21 412 561 363 Other debtors 11.3 13 - 88 101 83 Total 179 7,514 500 8,193 7,980
11.1 Claims recoverable Note 2013/14 2012/13 11 R’000 R’000 Provincial departments 38 41 Local governments 7,493 7,493 Total 7,531 7,534
199
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
11.2 Staff debt Note 2013/14 2012/13 11 R’000 R’000 Debt Account 561 363 Total 561 363
11.3 Other debtors Note 2013/14 2012/13 11 R’000 R’000 Salary Tax Debt 13 1 Supplier Debt 88 82 Total 101 83
12. Voted funds to be surrendered to the Revenue Fund
Note 2013/14 2012/13 R’000 R’000 Opening balance 578 15,393 Transfer from statement of financial performance 2,088 291,683 Voted funds not requested/not received 1.1 (872) (291,104) Paid during the year (579) (15,394) Closing balance 1,215 578
13. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
Note 2013/14 2012/13 R’000 R’000 Opening balance 3,906 39 Transfer from Statement of Financial Performance (as restated) 7,381 5,058 Own revenue included in appropriation 2,963 2,822 Paid during the year (13,669) (4,013) Closing balance 581 3,906
14. Payables – current
Note 2013/14 2012/13
R’000 R’000 Amounts owing to other entities 7,505 7,513 Clearing accounts 14.1 8 71 Other payables 14.2 191 110 Total 7,704 7,694
14.1 Clearing accounts Note 2013/14 2012/13 14 R’000 R’000 Income Tax Debt 8 36 Salaries ACB recalls - 35 Total 8 71
14.2 Other payables Note 2013/14 2012/13 14 R’000 R’000 Debt receivable interest 105 15 Debt receivable income 86 94 Sal: Garnishee Order - 1 Total 191 110
200
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
15. Net cash flow available from operating activities
Note 2013/14 2012/13 R’000 R’000 Net surplus/(deficit) as per Statement of Financial Performance 9,469 296,741 Add back non cash/cash movements not deemed operating activities (4,943) (299,236) (Increase) in receivables – current (213) (7,177) Increase in payables – current 10 7,559 Expenditure on capital assets 7,417 8,071 Surrenders to Revenue Fund (14,248) (19,407) Voted funds not requested/not received (872) (291,104) Own revenue included in appropriation 2,963 2,822 Net cash flow generated by operating activities 4,526 (2,495)
16. Reconciliation of cash and cash equivalents for cash flow purposes
Note 2013/14 2012/13 R’000 R’000 Consolidated Paymaster General account 1,307 4,198 Cash on hand - - Total 1,307 4,198
17. Contingent liabilities and contingent assets
17.1 Contingent liabilities Note 2013/14 2012/13 R’000 R’000 Liable to Nature Housing loan guarantees Employees Annex 2A 199 175 Claims against the department* Annex 2B 588,091 413,588 Intergovernmental payables (unconfirmed balances) Annex 4 10,137 1,034 Total 598,427 414,797
*The balance includes claims against the department of R567,426mil that pertains to dormant projects
17.2 Contingent assets Note 2013/14 2012/13 R’000 R’000 Nature of contingent asset Amount paid in error to service provider-Urban & Rural 831 799 Recovery of favourable cost due to the - Formprops 4,000 4,000 Khumbula Properties 4,214 4,200 Recovery of unduly paid fees- MSA attorneys 663 663 Breach of contract- Mandlethu 61,449 61,449 Recovery of favourable costs- West side 76 76 Recovery of unduly paid fees 27,000 27,000 Recovery of funds overpaid- HROPT 3 82 Recovery of funds SHRA 165,000 165,000 Recovery of no work no pay 503 503 Total 263,739 263,772
Prior year figures have been restated increasing from R 236,772mil to R 263,772 mil.
201
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
18. Commitments Note 2013/14 2012/13 R’000 R’000 Current expenditure Approved and contracted 1,169 383 1,169 383 Capital expenditure Approved and contracted 4,792,843 4,557,017 Approved but not yet contracted 4,121,577 209,483 8,914,420 4,766,500 Total Commitments 8,915,589 4,766,883 19. Accruals 2013/14 2012/13 R’000 R’000 Listed by economic classification 30 Days 30+ Days Total Total Goods and services 5,834 735 6,569 2,071 Transfers and subsidies 40,648 1,836 42,484 44,746 Capital assets 415 - 415 - Other 54 1,106 1,160 879 Total 46,951 3,677 50,628 47,696
Note 2013/14 2012/13 R’000 R’000 Listed by programme level Programme 1 4,219 1,517 Programme 2 155 65 Programme 3 46,183 46,024 Programme 4 71 90 Total 50,628 47,696
Note 2013/14 2012/13 R’000 R’000 Confirmed balances with other departments Annex 4 7,505 7,513 Total 7,505 7,513
20. Employee benefits Note 2013/14 2012/13 R’000 R’000 Leave entitlement 11,084 10,038 Service bonus (Thirteenth cheque) 6,827 6,222 Performance awards * 3,757 3,397 Capped leave commitments 15,857 15,012 Total 37,525 34,669
* Prior year corresponding amount has been restated increasing from R2,993mil to R3,397mil
202
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
21. Lease commitments 21.1 Operating leases expenditure Buildings Specialised and other Machinery military fixed and 2013/14 equipment Land structures equipment Total Not later than 1 year - - - 561 561 Later than 1 year and not later than 5 years - - - 712 712 Total lease commitments - - - 1,273 1,273
Buildings Specialised and other Machinery military fixed and 2012/13 equipment Land structures equipment Total Not later than 1 year - - - 523 523 Later than 1 year and not later than 5 years - - - 153 153 Total lease commitments - - - 676 676
21.2 Finance leases expenditure** Buildings Specialised and other Machinery military fixed and 2013/14 equipment Land structures equipment Total Not later than 1 year - - - 7,118 7,118 Later than 1 year and not later than 5 years - - - 5,435 5,435 Total lease commitments - - - 12,553 12,553
Buildings Specialised and other Machinery military fixed and 2012/13 equipment Land structures equipment Total Not later than 1 year - - - 6,255 6,255 Later than 1 year and not later than 5 years - - - 10,427 10,427 Total lease commitments - - - 16,682 16,682
22. Accrued departmental revenue Note 2013/14 2012/13 R’000 R’000 Other 17,950 19,829 Total 17,950 19,829
22.1 Analysis of accrued departmental revenue Note 2013/14 2012/13 R’000 R’000 Opening balance 19,829 15,481 Less: Amounts received (4,348) - Add: amounts recognised 2,469 4,348 Closing balance 17,950 19,829
203
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
23. Irregular expenditure
23.1 Reconciliation of irregular expenditure Note 2013/14 2012/13 R’000 R’000 Opening balance 483,976 134,316 Add: Irregular expenditure – relating to prior year - 148,000 Add: Irregular expenditure – relating to current year 12,980 211,682 Less: Prior year amounts condoned (52,743) (9,017) Less: Current year amounts condoned - (1,005) Irregular expenditure awaiting condonation 444,213 *483,976
Analysis of awaiting condonation per age classification Current year 12,980 154,149 Prior years 431,233 329,827 Total **444,213 *483,976
* Prior year corresponding amount has been restated from R 549,138mil to R 483,976mil
** The current year irregular expenditure of R12,980 mil relates to non-compliance with procurement requirements, however goods and services were received.
The balance of R431,233 mil relating to prior year consists of R415, 491 mil awaiting condonement from National Treasury and the remainder is under investigation.
23.2 Details of irregular expenditure – current year 2013/14 Incident Disciplinary steps taken/criminal proceedings R’000 Non-compliance with procurement processes Under investigation 721 Payments on multi-year contracts Condonement process through National Treasury previously disclosed as irregular underway 12,259 Total 12,980
23.3 Details of irregular expenditure condoned Incident Condoned by (condoning authority) 2013/14 R’000
Payment for Emergency Housing Assistance exceeding delegated authority Provincial Treasury 14,359 Over-expenditure of the compensation of employees budget Provincial Treasury 11,656 Non-adherence to procurement processes Accounting Officer 26,728 Total 52,743
24. Fruitless and wasteful expenditure 24.1 Reconciliation of fruitless and wasteful expenditure Note 2013/14 2012/13 R’000 R’000 Opening balance 416 7,855 Fruitless and wasteful expenditure – relating to current year 461 61 Less: Amounts transferred to receivables for recovery - (7,500) Fruitless and wasteful expenditure awaiting resolution 877 416
24.2 Analysis of awaiting resolution per economic classification Note 2013/14 2012/13 R’000 R’000 Current 877 416 Total 877 416
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DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
24.3 Analysis of Current year’s fruitless and wasteful expenditure Incident Disciplinary steps taken/criminal proceedings 2012/13 R’000 Interest paid on court order Under investigation 380 Interest paid on overdue account Under investigation 37 Penalties incurred for commitments not Under investigation 32 honoured by departmental officials Traffic fines and administrative fees Under investigation 1 Repairs for damages Under Investigation 11 Total 461 25. Related party transactions
The Department occupies buildings that are owned by/under the custodianship of/ leased by the Department of Road and Public Works. These buildings are occupied for no considerations and no amounts are paid to the Department of Roads and Public Works for the occupation of these premises.
Further, the Department of Safety and Liaison and Human Settlements are under the same Member of Executive Committee.
26. Key management personnel No. of 2013/14 2012/13 Individuals R’000 R’000 Political office bearers (provide detail below) 1 1,735 1,652 Level 15 to 16 1 1,272 1,184 Level 14 10 8,528 7,100 Total 11,535 9,936
27. Impairment : Other Note 2013/14 2012/13 R’000 R’000 Debtors 7,894 7,493 Total 7,894 7,493
28. Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Opening Curr Year Additions Disposals Closing balance Adjustments Balance to prior year balances R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 36,268 (3) 2,651 1,260 37,656 Transport assets 1,000 - 1,003 1,000 1,003 Computer equipment 25,314 9 1,538 260 26,601 Furniture and office equipment 8,089 (224) 97 - 7,962 Other machinery and equipment 1,865 212 13 - 2,090
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 36,268 (3) 2,651 1,260 37,656
205
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
28.1 Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Cash Non-cash (Capital Work Received Total in Progress current, not current costs paid and finance (Paid current lease year, payments) received prior year) R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 7,417 350 (5,531) 415 2,651 Transport assets 5,515 350 (4,862) - 1,003 Computer equipment 1,123 - - 415 1,538 Furniture and office equipment 97 - - - 97 Other machinery and equipment 682 - (669) - 13
TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 7,417 350 (5,531) 415 2,651
28.2 Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Sold for Transfer out Total Cash cash or destroyed disposals Received or scrapped Actual R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT - 1,260 1,260 - Transport assets - 1,000 1,000 - Computer equipment - 260 260 -
TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS - 1,260 1,260 -
28.3 Movement for 2012/13 Opening Curr Year Additions Disposals Closing balance Adjust- Balance ments to prior year balances R’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 35,704 (1,461) 2,250 225 36,268 Transport assets 1,000 - - - 1,000 Computer equipment 23,944 - 1,595 225 25,314 Furniture and office equipment 7,440 - 649 - 8,089 Other machinery and equipment 3,320 (1,461) 6 - 1,865
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 35,704 (1,461) 2,250 225 36,268
206
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
28.4 Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Machinery Total and equipment R’000 R’000 Opening balance 7,223 7,223 Additions 182 182 Disposals 25 25 TOTAL MINOR ASSETS 7,380 7,380
Machinery Total and equipment Number of R1 minor assets 1,243 1,243 Number of minor assets at cost 4,589 4,589 TOTAL NUMBER OF MINOR ASSETS 5,832 5,832
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Machinery Total and equipment R’000 R’000 Opening balance 6,743 6,743 Current year adjustments to prior year balances 33 33 Additions 508 508 Disposals 61 61 TOTAL MINOR ASSETS 7,223 7,223
Machinery Total and equipment Number of R1 minor assets 1,274 1,274 Number of minor assets at cost 3,887 3,887 TOTAL NUMBER OF MINOR ASSETS 5,161 5,161
29. Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Opening Current Year Additions Disposals Closing balance Adjustments Balance to prior year balances R’000 R’000 R’000 R’000 R’000
Software* - - 409 - 409 TOTAL INTANGIBLE CAPITAL - - 409 - 409 ASSETS
*Procurement of a Payment Voucher Administration System from the Operation Capital Budget of the Human Settlements Development Grant
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DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
29.1 Additions
ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Cash Non-Cash (Developmen Received Total t work in current year, progress – not paid current (Paid current costs) year, received prior year) R’000 R’000 R’000 R’000 R’000
Software - - 409 - 409 TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS - - 409 - 409
30. Agent-principal arrangements
30.1 Department acting as the principal 2013/14 R’000 Amathole 780 Baviaans 90 Blue Crane Route 1,439 Buffalo City 111,150 Camdeboo 14 Elundini 1,245 Emalahleni 37 Ikwezi 7 Inkwanca 9 Kouga 29 Koukamma 35,368 Makana 1,972 Mbizana 311 Ndlambe 14,146 Nelson Mandela 474,222 OR Tambo 4,471 Sunday’s River Valley 206 645,496
* The department has transferred R 645,496mil to municipalities to perform human settlements development.
208
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
31. Supplementary Information The supplementary information set out on pages on 210 to 219 (Annexures) does not form part of the Financial Statements and is presented as additional information.
209 DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013
32. STATEMENT OF CONDITIONAL GRANTS RECEIVED
GRANT ALLOCATION SPENT 2012\2013
Division of % of DEPARTMENT OF Revenue Amount available Division HUMAN Act/ received Amount Under / funds of Amount SETTLEMENTS Provincial Roll DORA Other Total by spent by (Overspending) spent by Revenue spent by Grants Overs Adjustments Adjustments Available department department department Act department R’000 R’000 R'000 R'000 R’000 R'000 R'000 R'000 % R’000 R’000
Human Settlements 2,429,631 - - - 2,429,631 2,429,631 2,429,631 - 100% 2,200,006 2,002,176 Development Grant Disaster Relief Grant 94,172 - - - 94,172 94,172 94,172 - 100% 92,853 - EPWP 3,000 - - - 3,000 3,000 2,128 872 71% - - 2,526,803 - - - 2,526,803 2,526,803 2,525,931 872 - 2,292,859 2,002,176 210
DEPARTMENT OF HUMAN SETTLEMENTS VOTE ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
ANNEXURE 1A STATEMENT OF TRANSFERS TO HOUSEHOLDS
TRANSFER ALLOCATION EXPENDITURE 2012/13 Adjusted Roll Adjustments Total Actual % of Appropriation Appropriation Overs Available Transfer Available Act Act funds Transferred HOUSEHOLDS R'000 R'000 R'000 R'000 R'000 % R'000
Transfers Human Settlement Development Grant 2,429,631 - (496) 2,429,631 2,429,631 100% 2,200,006 Households: Employee Benefits - - 496 496 484 98% 1,136 Housing Disaster Relief 94,172 - - 94,172 94,172 100% 92,853 Total 2,523,803 - - 2,523,803 2,524,287 - 2,293,995
211
DEPARTMENT OF HUMAN SETTLEMENTS VOTE ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
ANNEXURE 1B STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED
2013/14 2012/13 NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP R’000 R’000
Received in cash Uphahla Women’s Build Project 50 - SHRA Financial Donation towards Govan Mbeki Awards 25 - Motheo Financial Donation towards Govan Mbeki Awards 20 - Iliso Consulting Women’s Build Project 10 - Nare Housing Women’s Build Project 10 - Lilibo Investments Women’s Build Project 10 - Technical Team Members Women’s Build Project 11 - Umso Construction Women’s Build Project 10 - 212 Goliath Construction Women’s Build Project 15 - KPMG Women’s Build Project 1 - Profit Partners Women’s Build Project 10 - Lilitha Projects Women’s Build Project 10 - HDA Masakhane Construction Women’s Build Project 2 - Hardcore Projects Women’s Build Project 2 - New Creations Women’s Build Project 5 - Everite Construction Financial Donation towards Govan Mbeki Awards - 35 Coega Financial Donation towards Govan Mbeki Awards 25 20 ABSA Financial Donation towards Govan Mbeki Awards - 70 DBSA Financial Donation towards Govan Mbeki Awards - 20 Subtotal 216 145
DEPARTMENT OF HUMAN SETTLEMENTS VOTE ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
ANNEXURE 1B STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED (cont.)
2013/14 2012/13 NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP R’000 R’000 Received in kind Everite Construction Gift Voucher 10 - MMS Development Furniture 16 - Uphahla Furniture - - MWP Contractors Furniture 10 - Motheo Construction Furniture - - Eurocon Consulting Groceries for destitute families - - Dimension Data Souvenirs for the Secretaries Day - 6 Microsoft Souvenirs for the Secretaries Day - 2 213 Garden court Hospitality vouchers for the secretaries day - 6 Group 5 Souvenirs for the Secretaries Day - 4 Business connexion Laptop for the Govan Mbeki awards - 7 Simo solutions Prize item for the secretaries day and Govan Mbeki awards - 7 Capitec bank 4 laptops for Govan Mbeki awards - 20 Fitzcape Construction Catering for the youth build programme - 15 Masakhane Hardware Building material for the youth build programme (zinc) - 3 LG Construction Building material for the youth build programme (cement) - 3 Subtotal 36 73 TOTAL 252 218
DEPARTMENT OF HUMAN SETTLEMENTS VOTE ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
ANNEXURE 2A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2014 – LOCAL
Original Opening Guarantees Guarantees Revaluations Closing balance Guaranteed Realised guaranteed balance draw downs repayments/ 31 March 2014 interest for losses not capital 1 April 2013 during the cancelled/ year ended 31 recoverable i.e. amount year reduced/ March 2014 claims paid out released during the year Guarantor Guarantee in institution respect of R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Subtotal STD Bank Housing 66 13 99 13 - 99 - - ABSA 810 162 - 62 - 100 - - TOTAL 876 175 99 75 - 199 - -
214
DEPARTMENT OF HUMAN SETTLEMENTS VOTE ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
ANNEXURE 2B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2014
Liabilities Liabilities recoverable Opening Liabilities paid/cancelled/ (Provide Closing Nature of Liability Balance incurred during reduced during details Balance 1 April 2013 the year the year hereunder) 31 March 2014 R’000 R’000 R’000 R’000 R’000 Claims against the department Damage of Property (ES Bikitsha) 75 - - - 75 Claims for services Rendered (NMBM &Sefa Eric and Amanzabantu) 272 3,411 - - 3,683 Forensic investigation 500 - 140 - 360 Enforcement of agreement and eviction of illegal occupants 370 10 - - 380 Breach of Contract-(Tazhade, KWTHA, Lukhozi, Mandlethu and Goba Gcora) 6,977 4,407 143 - 11,241 Interdicts Mzaidume, MEC 535 220 78 - 677 Stemele Bosch and Khumbula legal fees 3,800 - 2,725 - 1,075 Cession Agreements(Nurcha, On Tap, Umhlabathi) 1,267 - 310 - 957
215 Policy inputs on prevention of mushrooming of informal settlement 395 - 327 - 68 Gardening and greening (Legal fees) 600 - - - 600 Intergrated Development Framework(HR POLICIES) 327 - 327 - - Utshungu Urban & Rural (Legal Fees) 50 - - - 50 MSA Attorney (Legal fees) 200 - 8 - 192 SIU (Disciplinary Hearing-Bethelsdorp Report) 80 - - - 80 Damages for defamation damages (Ruan, Jaques, Rene) - 330 - - 330 Seeking legal opinion (SHRA, Treasury, Flisp) - 666 - - 666 Ntlakohlaza Travel Agency (Damage to rental car) 7 - - - 7 Project without movement (closure process) 397,913 169,513 - - 567,426 Payment of funds to qualifying employees-HROPT 220 - 220 - - Gemprint – claim for services rendered - 22 - - 22 Settlement of compensation benefits - 202 - - 202
TOTAL 413,588 178,781 4,278 - 588,091
DEPARTMENT OF HUMAN SETTLEMENTS VOTE ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
ANNEXURE 2B (continued)
Opening Closing Nature of Assets recoverable Balance Details of Liability Movement Balance 1 April 2013 and during year 31 March 2014 R’000 Recoverability R’000 R’000
Amount paid in error to developer- Urban and Rural 799 - 32 831 Recovery of favourable cost due to the Formprops 4,000 - - 4,000 Khumbula properties 4,200 - 14 4,214 Recovery of unduly paid fees – MSA Attorneys 663 - - 663 Breach of contract Mandlethu 61,449 - - 61,449 Recovery of favourable costs – Westside 76 - - 76 Recovery of unduly paid fees - Tazhade 27,000 - - 27,000 Recovery of funds overpaid - HROPT 82 - (79) 3
216 Recovery of funds- SHRA 165,000 - - 165,000 Recovery no work no pay from employees 503 - - 503 Total 263,772 - (33) 263,739
DEPARTMENT OF HUMAN SETTLEMENTS VOTE ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
ANNEXURE 3 CLAIMS RECOVERABLE
Confirmed balance outstanding Unconfirmed balance outstanding Total Government Entity 31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013 R’000 R’000 R’000 R’000 R’000 R’000 Department Nelson Mandela Bay Municipality - 39 - - - 39 Department of Labour - 2 - - - 2 Sakhisizwe & Tsolwana Municipality 7,493 7,493 - - 7,493 7,493 Department of Local Government 38 - - - 38 - Provincial Treasury - - 6,300 - 6,300 - TOTAL 7,531 7,534 6,300 - 13,831 7,534 217
DEPARTMENT OF HUMAN SETTLEMENTS VOTE 11 ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
ANNEXURE 4 INTER-GOVERNMENT PAYABLES
Confirmed balance Unconfirmed balance outstanding outstanding TOTAL GOVERNMENT ENTITY 31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013
R’000 R’000 R’000 R’000 R’000 R’000
DEPARTMENTS
Current
Provincial Treasury 12 20 - - 12 20
Department of Local Government 7,493 7,493 50 - 7,543 7,493
Department of Justice - - 8,227 1,034 8,227 1,034
Government Printing Works - - 69 - 69 -
Department of Transport - - 1,791 - 1,791 -
Total 7,505 7,513 10,137 1,034 17,642 8,547
218
ANNEXURE 5 INVENTORY
Inventory Note Quantity 2013/14 Quantity 2012/13 R’000 R’000 Opening balance - 586,186 - 1,370,552 Add: Additions/Purchases – Cash - 1,395,546 - 749,991 Add: Immovable Properties - 354,263 - - (Less): Issues - (714,465) - (1,534,357) Closing balance 1,621,530 586,186
Immovable properties to the value of R7,959 transferred to the Department by Public Works and 1,137 Housing Board properties have been disclosed as Inventory in the 2013/14 financial year as the intention of the department is to devolve the properties to municipalities and beneficiaries. Land to the value of R150,340mil (2013/14), R203,923mil (2012/13) was procured by the Department for human settlement development. Stores items of R 273k previously disclosed as inventory in 2012/13 have been reclassified as consumables. 1,114 immovable properties are in the process of transfer from Public Works. The S42 transfer was signed by both Accounting Officers on the 31st March 2014 and the process will be completed with the issue of the Item 28(1) certificate by Public Works.
219
PR188/2014 • ISBN: 978-0-621-42857-5 Eastern Cape Department of Human Settlements Steve Tshwete Building • 31-33 Phillip Frame Road Waverly Park • Chiselhurst • 5247 • East London Vote: 11 /20 ANNUAL REPORT 20 Contact: 043 711 9514 HUMAN SETTLEMENTS Customer Care Line: 086 000 0039 www.ecdhs.gov.za 314 13
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