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Department of Human Settlements Free State Province

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Department of Human Settlements Free State Province DEPARTMENT OF HUMAN SETTLEMENTS FREE STATE PROVINCE VOTE NO. 13 ANNUAL REPORT 2014/2015 FINANCIAL YEAR PR311/2015 ISBN 978-0-621-44021-8 0 1 CONTENT PAGE No PART A: GENERAL INFORMATION .................................................................................. 4 1. DEPARTMENT GENERAL INFORMATION ................................................................... 5 2. LIST OF ABBREVIATIONS/ACRONYMS ....................................................................... 6 3. FOREWORD BY THE MEC ........................................................................................... 7 4. REPORT OF THE ACCOUNTING OFFICER ................................................................. 9 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ....................................................................................................... 17 6. STRATEGIC OVERVIEW ............................................................................................. 18 6.1. Vision ................................................................................................................ 18 6.2. Mission .............................................................................................................. 18 6.3. Values ............................................................................................................... 18 7. LEGISLATIVE AND OTHER MANDATES .................................................................... 19 8. ORGANISATIONAL STRUCTURE ............................................................................... 26 PART B: PERFORMANCE INFORMATION ....................................................................... 27 AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES .............................. 28 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE .................................................. 29 2.1. Service Delivery Environment ............................................................................ 29 2.2. Service Delivery Improvement Plan ................................................................... 30 2.3. Organisational environment ............................................................................... 31 2.4. Key policy developments and legislative changes ............................................. 32 3. STRATEGIC OUTCOME ORIENTED GOALS ............................................................. 32 4. PERFORMANCE INFORMATION BY PROGRAMME .................................................. 32 4.1. Programme 1: .................................................................................................. 32 4.2. Programme 2: ................................................................................................... 45 4.3. Programme 3: ................................................................................................... 46 4.4. Programme 4: .................................................................................................. 53 5. TRANSFER PAYMENTS.............................................................................................. 55 5.1. Transfer payments to public entities .................................................................. 55 5.2. Transfer payments to all organisations other than public entities ....................... 55 6. CONDITIONAL GRANTS ............................................................................................. 55 6.1. Conditional grants and earmarked funds paid ................................................... 55 6.2. Conditional grants and earmarked funds received ............................................. 56 7. DONOR FUNDS ........................................................................................................... 57 7.1. Donor Funds Received ...................................................................................... 57 8. CAPITAL INVESTMENT............................................................................................... 57 8.1. Capital investment, maintenance and asset management plan ......................... 57 2 PART C: GOVERNANCE ................................................................................................... 58 1. INTRODUCTION .......................................................................................................... 59 2. RISK MANAGEMENT .................................................................................................. 59 3. FRAUD AND CORRUPTION ........................................................................................ 59 4. MINIMISING CONFLICT OF INTEREST ...................................................................... 60 5. CODE OF CONDUCT .................................................................................................. 60 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ................................................... 60 7. PORTFOLIO COMMITTEES ........................................................................................ 61 8. PROPAC RESOLUTIONS ............................................................................................ 61 9. PRIOR MODIFICATIONS TO AUDIT REPORTS ......................................................... 63 10. INTERNAL CONTROL UNIT ...................................................................................... 63 11. INTERNAL AUDIT AND AUDIT COMMITTEES ................................................. 63 12. AUDIT COMMITTEE REPORT .................................................................................. 65 PART D: HUMAN RESOURCE MANAGEMENT ............................................................... 72 1. INTRODUCTION .......................................................................................................... 73 2. OVERVIEW OF HUMAN RESOURCES ....................................................................... 73 3. HUMAN RESOURCES OVERSIGHT STATISTICS ...................................................... 75 PART E: FINANCIAL INFORMATION.............................................................................. 116 1. REPORT OF THE AUDITOR GENERAL .................................................................... 117 2. ANNUAL FINANCIAL STATEMENTS......................................................................... 128 3 PART A: GENERAL INFORMATION 4 1. DEPARTMENT GENERAL INFORMATION PHYSICAL ADDRESS: 7th Floor, OR Tambo House Cnr. Markgraaff and St Andrews streets Bloemfontein 9301 POSTAL ADDRESS: P O Box 211 Bloemfontein 9300 TELEPHONE NUMBER/S: 051 403 5391 FAX NUMBER: 051 403 3699 E-Mail Address Head of Department: [email protected] Chief Financial Officer: [email protected]/[email protected] Chief Director: Corporate Services: [email protected] Website Address www.freestateonline.fs.gov.za http://www.humansettlements.fs.gov.za 5 2. LIST OF ABBREVIATIONS/ACRONYMS AG Auditor-General AGSA Auditor General of South Africa AO Accounting Officer BNG Breaking New Ground CRU Community Rental Units DPSA Department of Public Service and Administration FLISP Financed Linked Individual Subsidy Programme FSGDS Free State Growth and Development Strategy GSRB Gender Sensitive Rights Based HOD Head of Department HDA Housing Development Agency HSDG Human Settlements Development Grant ICT Information Communication Technology IDP Integrated Development Plan IGR Inter-Governmental Relations KPI Key Performance Indicator M&E Monitoring and Evaluation MEC Member of Executive Council MPAT Management Performance Assessment Tool MTEF Medium Term Expenditure Framework NDP National Development Plan NHBRC National Home Builders Registration Council NUSP National Upgrading Support Programme 6 3. FOREWORD BY THE EXECUTIVE AUTHORITY One of the basic elements of a stable and progressive society is steady homes and communities, which in return nurture well-adjusted and productive people who contribute to the wellbeing and progression of their society. These ideal homes, in a democratic society, are established in human settlements that conform to basic human rights. The standard that was set by the Freedom Charter that “all people shall have the right to live where they choose, be decently housed, and bring up their families in comfort and security” is relevant in this context. The cornerstone of our responsibility is to provide integrated and sustainable human settlements in the province, towards ensuring a better life for all as stipulated in Outcome 8: Sustainable human settlements and improved quality of household life. We have in the past 20 years evolved in our provision of human settlements; from providing housing as a unit to building human settlements that include infrastructure and basic services. Working in an integrated manner together with other government sectors, we included other amenities that make up complete human settlements with clinics, schools, roads, multi- purpose MEC SM MLAMLELI community halls etc. Our houses have also changed from smaller units to the current 50m² as a standard basic size with various designs that express individuality. In our quest to provide our people with homes, we have also acquired land for human settlement in which our people have been decently housed and many settlements today bear a testimony that we have not diverged from our vision and have indeed restored the dignity of many of our people who today live in their own homes with pride. The Free State government remains committed to the provision of decent shelter and settlements wherein people have access to clean water and proper
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