department of public works portfolio committee presentation 30 th october 2012 parliament of the...

DEPARTMENT OF PUBLIC DEPARTMENT OF PUBLIC WORKSWORKS

Portfolio Committee PresentationPortfolio Committee Presentation

3030thth October 2012 October 2012Parliament of the Republic Parliament of the Republic

of South Africaof South Africa

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Purpose of the Presentation by the Department of Public Works

-To reflect on the Quarter 2 information and financial performance of the Department of Public Works in the financial year 2012/13

Objective of the Portfolio Committee on Public Works

-Briefing by the Department of Public Works on the second quarter performance of the department for 2012/13.

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• Asset Investment Analysis• Key Account Management • Professional Services & Project Management

Underachieved: Actual vs. Target

Comparison and Underachievement: Current Progress below the previous Quarter

Overachieved: on target or over the target

Tentative: Data to be confirmed/Validated

Key

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Output Performance Indicator

Annual target Q1 Q2

Quarterly target

Actual progress

against target

Quarterly target

Actual progress

against target

To produce a complete and accurate immovable asset register on the assets by 31 March 2014

Number of properties populated with essential information.

Populate 10 929 properties

Populate 2 732 properties.

21 448 land parcels verified through desktop analysis and updated with Deeds’ Web information

Populate 2 732 properties.

14 424 land parcels verified through desktop analysis and updated with Deeds’ Web information

Confirmation of ownership of 35 895 land parcels under DPW’s custodianship

Number of land parcels Vested

Vest 1 190 land parcels

Vest 297 land parcels.

352 land parcels vested

Vest 297 land parcels.

58 land parcels vested

(35 895 land parcels) 15 500 title deeds endorsed

Number of title deeds endorsed.

Endorse 500 title deeds

Endorse 125 title deeds.

80 title deeds Endorse 125 title deeds.

None

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Annual target Q1 Q2

Quarterly target Actual progress against target

Quarterly target Actual progress against target

Service level Agreement between the Custodian and user Department

Signed Service Level Agreements for all user departments

SLAs signed with 25 user departments

Resubmit 25 SLAs not signed by user departments

User Departments have been approached to conclude SLAs

Follow up with monthly reminder to user departments who have not signed SLA’s.

Intermittent follow-ups were done.

Complete UAMP templates

Populate UAMP template for 50 user departments

Populate 50 user department UAMP templates

Send system information to 50 user departments

Information sent to 32 user Departments

Interaction with 50 user departments, monthly and quarterly.

Interacted with 39 user departments on UAMP template information.

Approved Capital Works Implementation programme

Signed Capital Works implementation Programs (CWIP) for user departments

CWIP signed for 10 user departments

Submit 10 signed CWIP’s to executing units

9 signed CWIP were submitted to executing units

First revision of 10 implementation programmes.

First revision completed for 4 user departments (i.e. DoD, DRDLR, DPW and DHA)

Value adding progress information report

Reports submitted monthly to each user department

Reports submitted to 50 user departments

Reports submitted monthly to 50 user departments

Reports submitted to all 50 user Departments

Reports submitted monthly to 50 user departments

Reports submitted to 44 user departments.

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Annual target

Q1 Q2

Quarterly target

Actual progress

against target

Quarterly target

Actual progress against target

Construction Projects Are Completed

Management of projects in a building programme between status 4 to 7

200 projects completed


31 Projects Completed


29 Projects Completed

Short To Medium Term Job Opportunities

Create jobs through the building programme (DPW and user departments)

40 000 jobs created

10 000 jobs created

13 202 jobs reported

10 000 jobs created

3 466

Professional Skills Development

Create learning and training opportunities for graduates of built environment careers

100 training opportunities created


8 Contracts for Graduates extended


No recruitment made.

Affirmable Business Enterprises (Specialists) Access Job Opportunities As Sub Contractors Or Suppliers To Main Contractors

35% of annual construction budget expenditure, accrued to Emerging Contractors, Women Owned Enterprises, Disabled Persons, and Youth in terms of BBBEE scorecard

Procurement Strategies to carry a minimum threshold of 35% of work to Sub-contracting (approval by Bid Committee

35% budget expenditure

No Contract awarded with CPG:

35% budget expenditure

No Contract awarded with CPG:

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Annual target

Q1 Q2

Quarterly target

Actual progress

against target

Quarterly target


Life Cycle management of Human Resources

Reduced vacancy rate

Vacancy rate is reduced to 15% as at 31st March 2013

16.5% reduced vacancy rate

Vacancy rate currently at 14.19% in quarter 1 5842 posts filled 966(14.19%) posts vacant

16.% reduced vacancy rate

Vacancy rate currently at 15.12% in quarter 2 5715 posts filled 1018 (15.12%) posts vacant Post advertised: 10

Vacancy rate – moving target that changes over time and is based on the system's update at the time of reporting

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Annual target Q1 Q2

Quarterly target

Actual progress

against target

Quarterly target

Actual progress

against target

Tabling of draft Agrèment SA Bill in Parliament.

Agrèment South Africa (ASA) established as a public entity by 31 March 2013.

Receive approval from JEC for the creation of a Public Entity.

Submit draft Bill for internal approval to submit to DG cluster.

Business Case submitted for internal approval

Draft Bill submitted for internal approval

Engage stakeholders on draft Bill.

Draft 3 of the ASA Bill under development. (Work in Progress)

Work in ProgressDraft Built Environment Professions (BEP) Policy.

Legislative framework for the BEP amended within the 2012 – 2015 period.

Tabling of BEP Bill(s) in Parliament.

To commence in Q2.

Draft BEP policy document submitted for internal approval and gazetting.

Draft BEP policy developed and circulated for internal comments.

Tabling of the Expropriation Bill in Parliament.

New Expropriation Bill tabled in Parliament by 31 March 2013, to ensure consistency with the Constitution and uniformity in the expropriation of property by all organs of state.

Tabling of Bill in Parliament.

Engagement on the Draft Bill with NEDLAC.

Draft Regulatory Impact Assessment and Bill being revised

Cabinet approval to table Bill in Parliament.

Comprehensive presentations taken place (Work in Progress)

In this case, yellow code represents slow progress (Work in progress)

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* 847 Correction Data to be confirmed later


Annual target

Q1 Q2

Quarterly target

Actual progress

against target

Quarterly target


NYS learners recruited

Number of youth participating in the NYS

3, 500 to participate in NYS

1200 to participate in NYS

660 (847)* 300 to participate in NYS

302 learners recruited

Technical Support provided to municipalities implementing projects

Number of municipalities reporting on EPWP targets

260 municipalities to report on EPWP targets

120 Municipalities to report on EPWP target

157 Municipalities reported to date

180 Municipalities to report on EPWP targets

200 Municipalities reported to-date

Number of EPWP work opportunities across all spheres of government reported to EPWP

Total number of work opportunities created through EPWP

Create 1, 210, 000 work opportunities

Create 302, 500 work opportunities

350 068 Work Opportunities

Create 500,000 work opportunities

Provincial roads projects implemented and reported on EPWP

Total Number of EPWP work opportunities created on provincial access roads

80,000 work opportunities


78 130 work opportunities created


100,787 work opportunities created

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DPW still faces challenges of (inter Alia): •Delays in SCM processes•Under spending in key programmes and have an adverse impact on service delivery•Capacity constraints to execute key and core programmes•Coordination between Head Office and Regional Offices

The Challenges are summed as follows:

These challenges are to be addressed under the 14 Projects of the Turnaround and plans have been put in place to address these challenges

Planning Structural Fissure Resourcing/Capacity

Systematic Challenges

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PROJECTS NO:

KEY FOCUS AREA

Project 1 IARProject 2 LeasesProject 3 Clean Audit of DPW and PMTEProject 4 Regional SupportProject 5 Fraud AwarenessProject 6 Re-opening of workshop

Building of Skills in DPWProject 7 SCM ReviewProject 8 Governance and Performance Management Review Project 9 Compliance Review and EnforcementProject 10 Bills for Parliament

Built Environment Professions Bill; Expropriation Bill;Regulate relationship between DPW and IDT, Agrema SA;Develop Policy position on: PMTE; Prestige Portfolio; Movable Asset Management, etc.

Project 11 Tshwane Inner City RegenerationHead Quarters (Correctional Services, Home Affairs, StatsSA, Communications, Higher Education, Pan African Precinct with associated facilities, United Nations Head Office Precinct)

Project 12 Change Management (Employee Issues/Grievances)Project 13 Key Account ManagementProject 14 PrestigeProject 15 IT PlatformProject 16 Limpopo

ProgrammeBudget

Allocation2012/13

Exp as at30

September

2012

% Spent as at 30

September

2012

% Spent as at 30

September2011

R'000 R'000

Prog 1. Administration 893 ,978 360,777 40% 53%

Prog 2. Immovable Asset Management

5,364,043 2,856,930 53% 40%

Prog 3. Expanded Public Works Programme

1,659,000 860,930 51% 36%

Prog 4. Property and Construction Industry Policy Regulation

37,436 16,069 41% 62%

Prog 5. Auxiliary and Associated Services

39,339 42,501 109% 75%

Total 7,993,796 4,137,207 52% 41%14

Figures are expressed cumulatively

Economic classificationBudget

Allocation2012/13

Exp as at30 Sept

2012

% Spent as at 30Septemb

er2012

% Spent as at 31 Sep 2011

R'000 R'000

Compensation of employees

1,260,154 680,147 54% 49%

Goods and services 596,580 278,228 47% 53%

Office Accommodation 469,052 137,152 29% 47%

Transfers and subsidies 4,085,826 2,747,644 67% 41%

Infrastructure 1,484,742 276,430 19% 28%

Machinery and equipment

97,442 17,605 18% 29%

Total 7,993,796 4,137,207 52% 41%

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Compensation of employees

• The overall expenditure for the department as at the end of the September is R4.137 billion, and expenditure is equivalent to 52% of the total allocation.

• Compensation of employees’ expenditure for the month ended September is R680 million, and the amount spent is equivalent to 54 % of the total allocation.

• Goods and Services expenditure for end of September is R278 million, and expenditure is equivalent to 47% of the total allocation.

• Expenditure for Office Accommodation is R137 million and expenditure is equivalent to 29% of the total allocation of R469 million.

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Transfers and subsidies

•Transfers and subsidies expenditure for the end of September 2012 is R 2.7 billion, and expenditure is equivalent to 67% of the allocation of R4.1 billion.

•The expenditure for transfers and subsidies for payments to provinces and municipalities is in line with the approved payments schedule.

•Payments to entities were also made as per schedule.

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Capital payments • Infrastructure expenditure for the end of September is R276 million and

expenditure is equivalent to 19% of the allocation of R 1.176 billion.

• Expenditure is far below the Linear Benchmark 50% and under spending is therefore projected.

• Machinery and equipment expenditure for the end of September is R17 million and expenditure is equivalent to 18% of the total allocation of R116

million .

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• Compensation of employees expenditure for Programme one is R108 million, and expenditure is equivalent to 54% of the total allocation of R198 million. Expenditure is higher than the guideline of 50%.

• Goods and services expenditure for programme one is R103 million and expenditure is equivalent to 52% which is in line with the guideline of 50%.

• Expenditure for Office Accommodation is R137 million and expenditure is equivalent to 28% of the total allocation.

• Expenditure for transfers and subsidies for programme one is R1 million and expenditure has exceeded the budget.

• Expenditure for machinery and equipment is R11 million and expenditure is equivalent to 44% of the total allocation.

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• The total expenditure for programme two is R2.9 billion and expenditure is equivalent to 53% of the allocation for the programme.

• Compensation of employees expenditure is R518 million, and expenditure is equivalent to 54%. Expenditure is 4% higher than the guideline of 50% for the straight line.

• Goods and services expenditure for the end of September is R86 million and expenditure is equivalent to 47% of the total allocation.

• Transfers and subsidies expenditure is R1.97 billion and expenditure is equivalent to 74%. The expenditure for transfers and is in line with the payment schedule as all payments were paid in accordance with the approved drawings.

• Infrastructure expenditure for the end of September 2012 is R 276 million and expenditure is equivalent to 19% of the allocation of R 1.484 billion.

• Expenditure for machinery and equipment is R5.8 million and expenditure is equivalent to 8% of the total allocation.

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• Total expenditure for programme three is R861 million and expenditure is equivalent to 51% of the total allocation.

• Compensation of employees expenditure is R50 million, and expenditure is equivalent 53%. Expenditure is higher than the guideline of 50%.

• Goods and services expenditure is R48 million and expenditure is equivalent to 28%.

• Transfers and subsidies expenditure is R761 million and expenditure is equivalent to 54% of the allocation.

• Machinery and equipment expenditure is R835 000 and expenditure is equivalent to 53% of the allocated budget.

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• Total expenditure for programme four is R16 million and expenditure is equivalent to 41% of the allocated budget.

• Compensation of employees expenditure for programme four is R3.7 million and expenditure is equivalent to 26% of the allocation.

• Goods and services expenditure is R12 million, and expenditure is equivalent to 50%. Expenditure for goods and service includes payment to Agrement SA.

• Machinery and equipment expenditure for the end of September is R17 000 and expenditure is equivalent to 15% of the total allocation.

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• Total expenditure for programme five is R45 million and expenditure is equivalent to 115% of the allocation.

• Over spending in programme five is due to high spending under goods and services.

• Goods and services expenditure for the month ended September is R30 million, and expenditure is equivalent to 173%. Overspending under goods and services relates to State Function for two funerals declared state events.

• Funding relating to the funerals has been requested as part of the Adjustment Estimates.

• Expenditure for transfers and subsidies is R15 million and expenditure is equivalent to 70% of the total allocation.

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• 79% of the amounts invoiced have already been received. (This represents 40% of the amount to be invoiced for the year).

• Second quarter invoices were issued during July 2012• Third quarter invoices to be issued during October 2012• 46% of the outstanding debt relates to accounts outstanding for 90 days.• 95% of outstanding amounts in total relates to current year• Clients are resistant to pay as we are still not in a position to compile itemized

billing• Justice has indicated in writing that they will not pay if not supplied with itemized

billing• Defence has short paid their invoice by R 128 million indicating that their budget

has been reduced. This translates to a R 512 million reduction in the envisaged Revenue

• The total budget has been adjusted to accommodate that.

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• 32% of the money received against this item relates to prior years

• 60% of amounts invoiced have been received

• 80% of the outstanding amounts for the current financial year is less than 90 days

• An amount of R 25 million has not been claimed as it relates to disputed properties

where the Client either disputed occupation or the rental being paid

• The Department will negotiate with National Treasury to move the amounts initially

incorrectly allocated against Public Works for Constitutional Institutions (CGE, SAHRC,

etc.) to the correct budgets.

• This was planned for the Adjustment Estimates, but we did not meet the deadline and

it will therefore have to be included in the ENE exercise

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• Total amount of R 186 m outstanding for current year

• R 173 relates to Defence – Special Arms of Services projects

• Meeting are taking place with the Client to address the Arms of Service

that are not paying their claims

• Older balances:– Government Printers are disputing the total cost of their project

– DIRCO is disputing the total cost of their project

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Programmes Financial BudgetR’ 000

Performance information

Prog: 1 Administration – HR• PMTE

Prog: 2 Immovable Asset Management • Asset Register• KAM• Projects

Prog: 3 EPWP

Prog: 4 Policy

Turnaround Projects

No Progress/Grossly under-performing /expenditureRatings between - 0 – 30%

Progress but underachievement 51% - 79%

On target/over achieved 100% & /Over expenditure

Partial Progress and needs improvement - 31% - 50%

Reasonable progress 80% - 99%

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National Department of Public Works (NDPW)Head Office: Public WorksCGO BuildingCnr Bosman and MadibaPretoria CentralPrivate BagX65Pretoria0001Website: http://www.publicworks.gov.za

http://www.publicworks.gov.za/

department of public works portfolio committee presentation 30 th october 2012 parliament of the...

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