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Annual Report 2019/20 Department of Human Settlements

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Annual Report 2019/20 Department of Human Settlements Annual Report 2019/20 Department of Human Settlements DEPARTMENT OF HUMAN SETTLEMENTS Western Cape Vote 8 Annual Report 2019/20 FINANCIAL YEAR Contents PART A: GENERAL INFORMATION 3 1. DEPARTMENT’S GENERAL INFORMATION 4 2. LIST OF ABBREVIATIONS/ACRONYMS 5 3. FOREWORD BY THE PROVINCIAL MINISTER OF THE DEPARTMENT 7 4. REPORT OF THE ACCOUNTING OFFICER 9 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 20 6. STRATEGIC OVERVIEW 21 7. LEGISLATIVE AND OTHER MANDATES 22 8. ORGANISATIONAL STRUCTURE 23 9. ENTITIES REPORTING TO THE MINISTER 23 PART B: PERFORMANCE INFORMATION 25 1. AUDITOR-GENERAL’S REPORT: PREDETERMINED OBJECTIVES 26 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 26 2.1 Service delivery environment 26 2.2 Service delivery improvement plan 27 2.3 Organisational environment 32 2.4 Key policy developments and legislative changes 33 3. STRATEGIC OUTCOME ORIENTED GOALS 33 4. PERFORMANCE INFORMATION BY PROGRAMME 35 4.1 Programme 1: Administration 35 4.2 Programme 2: Housing Needs, Research and Planning 40 4.3 Programme 3: Housing Development 48 4.4 Programme 4: Housing Asset Management 60 5. TRANSFER PAYMENTS 64 5.1. Transfer payments to public entities 64 5.2. Transfer payments to all organisations other than public entities 64 6. CONDITIONAL GRANTS 67 6.1. Conditional grants and earmarked funds paid 67 6.2. Conditional grants and earmarked funds received 67 7. DONOR FUNDS 71 7.1. Donor funds received 71 8. CAPITAL INVESTMENT 71 8.1. Capital investment, maintenance and asset management plan 71 PART C: GOVERNANCE 73 1. INTRODUCTION 74 2. RISK MANAGEMENT 74 3. FRAUD AND CORRUPTION 77 4. CONFLICT OF INTEREST 78 5. CODE OF CONDUCT 78 6. HEALTH, SAFETY AND ENVIRONMENTAL ISSUES 79 7. PORTFOLIO COMMITTEES 80 8. SCOPA RESOLUTIONS 82 9. PRIOR MODIFICATIONS TO AUDIT REPORTS 84 10. INTERNAL CONTROL UNIT 84 11. INTERNAL AUDIT AND AUDIT COMMITTEES 86 12. AUDIT COMMITTEE REPORT 87 13. BROAD-BASED BLACK ECONOMIC EMPOWERMENT (B-BBEE) COMPLIANCE PERFORMANCE INFORMATION 89 Annual Report 2019/20 1 PART D: HUMAN RESOURCE MANAGEMENT 91 1. INTRODUCTION 92 2. STATUS OF PEOPLE MANAGEMENT AT THE DEPARTMENT 92 2.1 Departmental workforce planning priorities 92 2.2 Employee performance management 93 2.3 Employee wellness 93 2.4 People management monitoring 93 3. PEOPLE MANAGEMENT OVERSIGHT STATISTICS 94 3.1 Personnel related expenditure 94 3.2 Employment and vacancies 98 3.3 Job evaluation 100 3.4 Employment changes 102 3.5 Employment equity 108 3.6 Signing of performance agreements by SMS members 115 3.7 Filling of SMS posts 116 3.8 Employee performance 118 3.9 Foreign workers 124 3.10 Leave utilisation for the period 1 January 2019 to 31 December 2019 125 3.11 Health promotion programmes, including HIV and AIDS 129 3.12 Labour relations 133 3.13 Skills development 135 3.14 Injury on duty 137 3.15 Utilisation of consultants 138 PART E: FINANCIAL INFORMATION 149 1. REPORT OF THE AUDITOR-GENERAL 151 2. ANNUAL FINANCIAL STATEMENTS 156 ANNEXURES 223 ANNEXURE A – LIST OF CONTRACTORS 236 Department of Human Settlements, 2 Western Cape GENERAL A INFORMATION Departmental receipts Estimate City of Cape Town Provincial Treasury acronyms Strategic overview Administration mandates Actual organisational structures TOTAL capital assets USDG Legislature Foreword by the Minister Housing Demand Database GENERAL INFORMATION Annual Report 2019/20 3 General Information A 1. DEPARTMENT’S GENERAL INFORMATION PHYSICAL ADDRESS: 27 Wale Street Cape Town 8001 POSTAL ADDRESS: Private Bag X9083 Cape Town 8000 TELEPHONE NUMBER/S: 021 483 4965 FAX NUMBER: 021 483 2862 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.westerncape.gov.za Department of Human Settlements, 4 Western Cape General Information A 2. LIST OF ABBREVIATIONS/ACRONYMS AFS Annual Financial Statements EPWP Expanded Public Works Programme AGSA Auditor-General of South Africa ERM Enterprise Risk Management AO Accounting Officer Enterprise Risk Management ERMCO Committee APP Annual Performance Plan EXCO Executive Committee BAC Bid Adjudication Committee Finance Linked Individual Subsidy Broad-Based Black Economic FLISP B-BBEE Programme Empowerment FTE Full-Time Equivalent BCP Business Continuity Plan GAP Governance Action Plan BEC Bid Evaluation Committee Government Employee Housing BLC Better Living Challenge GEHS Scheme CE-I Centre for e-Innovation GIS Geographic Information System CD Chief Director GMT Government Motor Transport CFO Chief Financial Officer GPS Global Positioning System CoCT City of Cape Town General Public Service Sector GPSSBC CPC Construction Procurement Committee Bargaining Council CSC Corporate Services Centre HDA Housing Development Agency Department of Environmental Affairs DEADP HDD Housing Demand Database and Development Planning HDI Historically Disadvantaged Individuals Department of Economic DEDAT HoD Head of Department Development and Tourism Human Settlement Development Directorate: Enterprise Risk HSDG D: ERM Grant Management IC Internal Control DORA Division of Revenue Act Information and Communication DotP Department of the Premier ICT Technology Department of Public Service and DPSA IDPs Integrated Development Plans Administration IFC International Finance Corporation Departmental SHERQ Operational DSOP Plan IGR Intergovernmental Relations Department of Transport and Public Integrated Residential Development DTPW IRDP Works Programme EAP Employee Assistance Programme IRT Integrated Reporting Tool Excellence in Design for Greater ISSP Informal Settlement Support Plan EDGE Efficiency LCT Legal Compliance Tool EHW Employee Health and Wellness LRA Labour Relations Act Employee Health and Wellness EHWP MEC Member of Executive Council Programme MIG Municipal Infrastructure Grant Enhanced Extended Discount Benefit EEDBS Scheme Annual Report 2019/20 5 General Information A Management Performance SAPS South African Police Service MPAT Assessment Tool SBT Sustainable Building Technologies MTSF Medium Term Strategic Framework SCM Supply Chain Management National Department of Human NDoHS Standing Committee on Public Settlements SCOPA Accounts NDP National Development Plan SDFs Spatial Development Frameworks NGO Non-Governmental Organisation SDIP Service Delivery Improvement Plan NTR National Treasury Regulations Safety, Health, Environment and SHEQ OHAS Occupational Health & Safety Quality OPSCAP Operations Capability Safety, Health, Environment, Risk and SHERQ Quality OHASA Occupational Health & Safety Act SHI Social Housing Institution PEHG Provincial Emergency Housing Grant SHRA Social Housing Regulatory Authority Personnel and Salaries Management PERSAL System SITS Supplier Invoice Tracking System PFMA Public Finance Management Act SMME’s Small, Medium and Micro Enterprises PFS Provincial Forensic Services SMS Senior Management Service PHP People’s Housing Process SMT Systems Monitoring Tool Policy on Incapacity Leave and Ill- SOPs Standard Operating Procedures PILIR Health Retirement ToR Terms of Reference PPC Property Planning Committee Upgrading of Informal Settlements UISP PPP Public Private Partnerships Programme PSG Provincial Strategic Goals USDG Urban Settlement Development Grant PSC Project Steering Committee Western Cape Department of Human WC: DoHS Settlements Public Service Coordinating PSCBC Bargaining Council WCG Western Cape Government Public Sector Risk Management Western Cape Housing Demand PSRMF WCHDDB Framework Database PT Provincial Treasury Western Cape Housing Development WCHDF Fund RHT Renting Housing Tribunal Western Cape Housing Demand Data South African Local Government WCHDDIP SALGA Improvement Programme Agency WCSD Western Cape Suppliers’ Database SANS South African National Standards Department of Human Settlements, 6 Western Cape General Information A 3. FOREWORD BY THE PROVINCIAL MINISTER OF THE DEPARTMENT The 2019/20 financial year allowed us the opportunity to once again improve the lives of thousands of people across the Western Cape. Making a significant and tangible difference in the lives of the most deserving beneficiaries drives us to do more. From the onset of my tenure as Minister, we resolved that key drivers are needed if we are going to deliver housing opportunities to our people. Four key drivers were identified: • The radical acceleration of housing delivery; • Radical Implementation of Innovative Solutions; • An Integrated Approach to Human Settlements; and • Radical Empowerment and Job Creation. We arrived at these key drivers after extensive consultation with a variety of stakeholders, including engagements with municipalities to address some of the biggest issues and challenges the human settlements environment might be experiencing. To further demonstrate that we are attentive to the views of our people, an executive directive was issued to all municipalities, stating that backyard dwellers should officially form part of their list of criteria for greenfield projects. This means that we’re prioritising the elderly, persons with disabilities, those longest on the housing demand database i.e. 15 years and longer as well as the backyard dwellers. It is worth noting that we are the first provincial government to officially include backyard dwellers into our list of priority groups. In essence, this means that in all greenfield projects there will be a 50/50 split, while keeping all the other criterion in mind. Furthermore, we have once again demonstrated our commitment to creating opportunities for Small, Medium and Micro Enterprises (SMME’s), by allocating 66.74% of the Human Settlements
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