DEPARTMENTAL PERFORMANCE REPORT: APRIL- JUNE 2013

PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS

DIRECTOR-GENERAL: T ZULU

CONTENT1. Departmental First Quarter Non-Financial

Performance (April to June 2013)2. Departmental Expenditure vs. Performance

(Targets / Outcomes)3. Communication and Outreach key4. Delivery Agreement (Outcome 8)5. Job Creation6. Accreditation of Municipalities7. Financial Matters 8. Challenges Experienced9. Performance Improvement Plans / Remedial

measures

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OVERVIEW OF DEPARTMENTAL PERFORMANCE (APRIL TO JUNE 2013)

• The overall achievement by the National Department of Human Settlements during the first quarter of 2013/2014 financial year is sixty five percent (65%).

• Out of one hundred and eighteen (118) targets which were planned for the period under review, seventy seven (77) targets were achieved whilst forty one (41) targets were not achieved.

OVERALL DEPARTMENTAL NON-FINANCIAL PERFORMANCE (APRIL- JUNE 2013)

This is mainly due to the following challenges experienced by the Department:•Failure to deliver the required services as stated in the Service Level Agreement by SITA

•Non-availability of suitable land for human settlements developments in Provinces

•Insufficient active monitoring presence in Provinces and Metros to monitor and verify performance of HSDG and USDG expenditure and delivery

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• The appointment at SMS level has been prioritized. This is done in order to ensure that non SMS appointments are done by their respective managers.

• The status report on the vacancy rate is being presented at EMT level every week. This is where progress and challenges are being deliberated on.

• All submissions on recruitment are being prioritized. This is done in order to ensure that the department does not loose potential candidates.

• The department has signed an agreement with South African Qualifications Authority (SAQA) where the turnaround time on the verification of qualifications has been reduced to 2 days.

• The officials in Human Resources unit are working extra hours in order to ensure that the recruitment process is successful. As a result 74% (155 out of 210) of vacant posts are already in the process of being filled.

The department has taken the following steps in the filling of vacant posts:

The following are the Departmental Remedial measures to be put in place to improve performance:

• Compulsory training on Bid specifications, evaluations and adjudication from the level of Assistant Director and upwards

• Address challenges relating to inter -governmental collaborations as they impact on policy development processes and service delivery

• Improve compliance by Provincial Departments and usefulness of HSS data

• Sufficient monitoring presence in Provinces and Metros to reduce turnaround time in collection of information on performance

• Approved guidelines to standardise and guide the implementation of PHP across the sector

• Full scale implementation of the Departmental Auditor General Action Plan 7

Departmental Expenditure vs. Performance (Targets / Outcomes)

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Branch Final Allocation Commitments Expenditure Variance

% Spent Planned

TargetsAchievedTargets

Variance/ Targets

Not achieved

% Achieved Targets

1: Administration 359 221 000 54 034 402 63 123 582 296 097 418 18% 27 20 7 74%

2: Human Settlements Delivery Frameworks

40 117 395 455 649 6 453 104 33 664 292 16% 20 5 15 25%

3: Human Settlements Strategy And Planning

53 508 605 2 259 739 9 078 191 44 430 414 17% 22 14 8 64%

4: Programme Management Unit 232 047 056 6 789 822 20 780 464 211 266 592 9% 13 8 5 62%

5: Office Of The Chief Financial Officer

27 366 831 344 84 310 475 3 004 157 449 24 362 673 895 11% 23 18 5 78%

6: Office Of The Chief Operations Officer

58 737 600 747 268 8 305 414 50 432 186 14% 13 12 1 92%

Total 28 110 463 000 148 597 355 3 111 898 203 24 998 564 797 11% 118 77 41 65%

COMMUNICATION AND OUTREACH

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• Sanitation Week held in Ward 5 at Makhaza in Khayelitsha – 25 April 2013

• Launched Walmer Link FLISP project – 09 May 2013

• Community engagement on the Budget Vote in Du-Noon – 22 May 2013

OUTCOME 8UPGRADING OF INFORMAL SETTLEMENTS

• Number of households provided with upgraded services as on 30 June 2013: 188 056 households

• Represents 47.0% of 2014 target

• Including USDG: Increased to 255 628 households

• Represents 63.9% of 2014 target

• Over same period Provinces delivered 192 253 formal housing units to households in informal settlements

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OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS

PROVINCE 2014TARGET

DELIVERY APRIL TO JUNE

2013

TOTAL DELIVERY (30 JUNE 2013)

% OF TARGET2014

EC 59 440 647 23 247 39.1

FS 26 400 920 19 116 72.4

GT 96 760 829 45 191 46.7

KZN 78 200 386 20 652 27.1

LP 31 200 0 20 624 66.1

MP 26 480 616 12 956 48.9

NC 9 320 90 11 829 126.8

NW 28 840 62 13 891 48.2

WC 45 360 694 20 560 45.3

TOTAL 400 000 4 244 188 056 47.0

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OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS:

USDG (30 JUNE 2013)PROVINCE HOUSING UNITS SERVICES PROVIDED

(SITES/WATER/ SANITATION)

RENTAL

EC 5 144 14 975 470

FS 0 3 647 1 237

GT 0 18 383 179

KZN 8 654 18 372 735

WC 0 12 195 1 727

TOTAL 16 091 67 572 4 169

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OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS

(INCLUDING USDG)PROVINCE 2014

TARGETTOTAL DELIVERY (30

JUNE 2013)INCLUDING USDG

% OF TARGET2014

EC 59 440 38 222 64.3

FS 26 400 22 763 86.2

GT 96 760 63 574 65.7

KZN 78 200 39 024 51.2

LP 31 200 20 624 66.1

MP 26 480 12 956 48.9

NC 9 320 11 819 126.8

NW 28 840 13 891 48.2

WC 45 360 32 755 72.2

TOTAL 400 000 255 628 63.9

OUTCOME 8 INFORMAL SETTLEMENTS: PROVISION OF TOP

STRUCTURESPROVINCE DELIVERY

APRIL TO JUNE 2013

TOTAL DELIVERY (30 JUNE 2013)

EC 764 22 665

FS 590 19 678

GT 3 487 58 385

KZN 1 463 30 942

LP 85 2 705

MP 950 11 788

NC 366 6 400

NW 1 250 19 027

WC 1 233 20 663

TOTAL 10 188 192 253

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Although the main objective of Outcome

is to provide residents in and from

informal settlements with access to

services, a total number of 192 253

formal top structures were also

delivered to residents in and from

informal settlements that improved the

quality of their lives. All of them

previously lived in a shack with access

to a low level of some basic services on

sit or through shared facilities.

OUTCOME 8NATIONAL UPGRADING SUPPORT

PROGRAMME• NUSP is providing technical assistance or is in the process of appointing service

providers to assist with upgrading strategies and plans or is in the process to determine assistance needs in the following cities/ municipalities:

EC: Buffalo City, Kouga, Elundini, Mhlonto and Mquma FS: Categorisation and mapping under way in six NUSP Municipalities; GT: Mogale City, City of Johannesburg, Ekurhuleni, City of Tshwane and

Emfuleni; KZN: Ladysmith, Newcastle, Mzundusi, Umhlathuze, Ethekweni and

KwaDukuza; LP: Developing of specific upgrading plans underway and additional 10

Municipalities identified for the same exercise;

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OUTCOME 8 NATIONAL UPGRADING SUPPORT

PROGRAMME• NUSP:

MP: Govan Mbeki, Thembisile, Emalahleni, Steve Tshwete: Lekoa. NC: //Kara Hais, Gamagara, Ga-Segonyana, Phokwane, Sol Plaatje and

Tsantsabane; NW: Rustenburg, Madibeng, Tlokwe, Maquassi Hills and Kgetlengrivier. A

further 8 settlements have been identified for assistance; and WC: Drakenstein, COCT, Mossel Bay and George.

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OUTCOME 8 INCREASED PROVISION OF WELL-LOCATED

RENTAL ACCOMMODATION

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PROVINCE SOCIAL CRU INSTITUTIONAL

TOTAL DELIVERYJUNE 2013

% OF 2014TARGET

TOTAL DELIVERY AS AT 30 JUNE

2013(including USDG)

% OF 2014TARGET

(including USDG)

EC 2 521 0 74 2 595 21.8 3 065 25.8

FS 673 1 094 394 2 161 40.9 3 398 64.4

GT 5 335 5 033 0 10 368 53.6 10 547 54.5

KZN 6 576 518 732 7 826 51.4 8 561 56.2

LP 0 136 0 136 2.2 136 2.2

MP 104 687 47 838 15.8 838 15.8

NC 0 81 209 290 15.6 290 15.6

NW 2 400 470 0 2 870 49.8 2 870 49.8

WC 1 838 4 354 331 6 523 71.9 8 250 90.9

Total 19 447 12 373 1 787 33 607 42.0 37 776 47.2

OUTCOME 8 WELL-LOCATED AFFORDABLE RENTAL

ACCOMMODATION• Restructuring Zones: 75 approved and 55 still under discussion

• SHRA:

Completed Projects: 2143 units Running Projects: 11 005 units Approved pipeline projects in various stages of planning: 21 445 units

• EC: 4734 LP: 3887• FS: 3250 MP: 710• GT: 1464 NC: 1573• KZN: 1733 NW: 1764

WC: 2330

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OUTCOME 8ACCREDITATION OF MUNICIPALITIES

Performance to date:

• Level 1: 8 District Municipality/Municipalities;• Level 2: 8 Metros, 11 District Municipalities/Local Municipalities• Implementation Protocols concluded: 24 Municipalities• Assignment (Level 3 accreditation) of Metros: FFC response identified a

number of operational issues that needed serious attention. • The target of signing the Executive Assignment Agreement was therefore

changed to15 August 2013. The target date for the Premier’s proclamation is now 15 September 2013.

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OUTCOME 8 OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN

SETTLEMENTS DEVELOPMENT

• Actual delivery:

72 210 ha of state land identified for assessment and47 604 ha thereof assessed for suitability for release;

7 477,5 ha has been released (FS, GP,KZN,LP+NW)

• Land released is well located for extension of existing settlements, land tenure upgrading, integrated development or GAP market

PHSD’s (private land acquired): 10 218,9 ha An additional 419,3 ha has been released by the Department of Rural

Development and Land Reform Two properties in Elias Motsoaledi Municipality measuring 523,3 ha

submitted for approval to be released for upgrading of informal settlements

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OUTCOME 8OUTPUT 4: IMPROVED PROPERTY MARKET

• Mortgage Default Insurance Scheme: Concurrence from the National Treasury for MDI is still outstanding

• Finance Linked Individual Subsidy: Revised FLISP Policy implemented on 1 April 2012; ABSA and Standard Bank signed a MOU with the NHFC. Three banks are

now on board and actively supporting the implementation of the programme.

An amendment to the revised policy has been proposed to increase the value cap imposed on the policy in April 2012 in accordance to the escalation of the BER Index.

It is also proposed that the Section 1A and B of the Housing Act, Act 107 of 1997, be amended to replace the pre-emptive right with a more workable solution

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OUTCOME 8OUTPUT 4: IMPROVED PROPERTY MARKET

Cont….. Banks are using the pre-emptive right condition to not approve loan

applications linked to FLISP subsidies; NHFC has requested that the administration of FLISP be extended to

the open market. An individual will therefore be allowed to approach a bank, obtain conditional loan approval and then approach the NHFC to apply for subsidy;

The above proposals are still under consideration Total number of units delivered: 330 (Provincial) – NHFC: 110

households assisted

• Long term fixed interest rate instrument

Planned for launching in 2014

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OUTCOME 8PERFORMANCE : DEVELOPMENT FINANCE

INSTITUTIONS: LOANS GRANTED

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INSTITUTION TOTAL DELIVERY % OF 2014 TARGETNHFC (Mortgage Loans) 1 810 93.893.8

NHFC (Incremental Loans) 12 968 31.931.9

NHFC (Wholesale funding) 23 786 60.560.5

NHFC (Leverage) 35 068 274.2274.2

RHLF 135 664135 664 74.674.6

NURCHA 8 3578 357 75.775.7

OUTCOME 8

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• Number of households provided with upgraded services: 230 111 households (including USDG performance) - represents 57,5% of 2014 target;

• Number of affordable rental accommodation delivered: 43 774 units (including USDG funded units) – represents 54,7% of 2014 target;

• Well located state land released to Municipalities for human settlements development: 7 477,5 ha;

• Total number of loans granted to the affordable property market: 226 495

JOB CREATION

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• During the quarter, 6,664 serviced sited and 19,648 top structures were delivered.

• This delivery translate to 9,437 job opportunities if the definition of a person employed for a period of one year is considered .

• If a temporary employment is considered for only that three months the delivery for that quarter is estimated to have created 20,010 jobs during the construction phase.

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ACCREDITATION OF MUNICIPALITIES Cont….

• FFC review has been received and is favourable & paves way for the formal assignment process can proceed and has been work shopped with Provinces and Metros.

• Consultation with all Provinces and Metros, bar the Eastern Cape and Nelson Mandela Bay Metro, have been undertaken to establish the required actions and time-frames towards the conclusion of the Signing of the executive agreement.

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ACCREDITATION OF MUNICIPALITIES Cont……

• Framework for the transfer of assets, liabilities, staff, and projects has been established to assist the Provinces and Metros post the signing of the assignment agreement

• Assignment Task Teams constituted of provincial local government departments, Provincial Treasuries, Provincial SALGAs, Human Settlements departments and Metros are being established to oversee the assignment process in Provinces.

FINANCIAL MATTERS

DEPARTMENTAL EXPENDITURE AND CONDITIONAL GRANTS: FIRST

QUARTER 2013

Introductory Remarks cont,• The Department has been allocated a budget of

R28, 1 in 2013 financial year of which 16, 9 billion is directed to the Human Settlement Development Grant and 9, 1 billion representing an Urban Settlement Department Grant. The different catering for other programmes including the Rural Household Infrastructure Grant and the operational budget.

• Within the allocation of 16, 9 billion is an earmarked allocation of 299 million for Disaster Relief Grant for disaster stricken areas

• •

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Introductory Remarks cont,• The HSDG together with the USDG seek to

fund the establishment habitable, stable and sustainable human settlements for citizens to have access to social and economical amenities.

• The HSDG is allocated to the approved business plans which categorises different programmes including the outcome 8 and National Priorities

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Introductory Remarks cont,

• This conditional grant and performance of the programmes are monitored in terms of the approved monitoring framework that is in line with the Government Wide Monitoring Framework.

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2013 MTEF ALLOCATION

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Rand thousand

Medium term estimates

2013/14 2014/15 2015/16

Administration 422,399 426,948 445,106

Human Settlements Policy, Strategy and Planning 84,055 89,301 92,967

Programme Delivery Support 226,922 239,335 251,305

Housing Development Finance 27,377,087 29,450,583 31,957,214

Total 28,110,463 30,206,167 32,746,592

Grants and transfers to entities constitute 97% of the total allocation.

Rand thousand

Medium term estimates

2013/14 2014/15 2015/16

Human Settlements Development Grant 16,983,872 17,918,321 19,667,204 Urban Settlements Development Grant 9,076,906 10,334,684 10,699,773 Rural Households Infrastructure Grant 106,721 113,124 118,328

Housing Development Agency 97,497 101,047 104,615

National Urban Reconstruction and Housing Agency 100,000

Social Housing Regulatory Authority: Operational 32,151 33,480 35,020

Social Housing Regulatory Authority: Capital restructuring grant 904,103 867,543 1,248,400

Total 27,301,250 29,368,199 31,873,341

2013 MTEF ALLOCATION: TRANSFER PAYMENTS

EXPENDITURE PER PROGRAMME: 30 JUNE 2013

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Programmes Final Allocation1

Commitments2

Expenditure3

Variance = 1 - 3

% Spent

1. Administration 422,399,000 56,395,570 75,942,535 346,456,465 18%

2. Human Settlements Policy, Strategy and Planning

84,055,000 2,643,434 14,608,842 69,446,158 17%

3. Programme Delivery Support 226,632,000 6,466,264 21,285,916 205,346,084 9%

4. Housing Development Finance 27,377,377,000 83,092,087 3,000,060,910 24,377,316,090 11%

Total 28,110,463,000 148,597,355 3,111,898,203 24,998,564,797 11%

OPERATIONAL EXPENDITURE: 30 JUNE 2013

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Programmes Final Allocation Commitments Expenditure Variance % Spent

1. Administration 422,399,000 56,395,570 75,942,535 346,456,465 18%

2. Housing Policy, Research and Monitoring 83,005,000 2,643,434 14,608,842 68,396,158 18%

3. Housing Planning and Delivery Support 219,168,000 6,466,264 20,458,984 198,709,016 9%

4. Housing Development Finance 76,127,000 858,319 10,730,910 65,396,090 14%

Total 800,699,000 66,363,587 121,741,271 678,957,729 15%

Note: Expenditure excludes all Transfer payments.

TRANSFER PAYMENTS 30 JUNE 2013

Transfer Payments Total Allocation Transferred Variance % Spent

Human Settlements Development Grant 16,983,872,000 2,940,582,000 14,043,290,000 17%

Urban Settlements Development Grant 9,076,906,000 - 9,076,906,000 0% Rural Households Infrastructure Development 106,721,000 - 106,721,000 0%

Social Housing Regulatory Authority: Operational 32,151,000 - 32,151,000 0%

Social Housing Regulatory Authority: Capital Restructuring Grant 904,103,000 - 904,103,000 0%

Housing Development Agency 97,497,000 48,748,000 48,749,000 50% National Urban Reconstruction and Housing Agency 100,000,000 - 100,000,000 0%

Nelson Mandela University 3,244,000 - 3,244,000 0%

Bursaries Scheme 4,220,000 826,932 3,393,068 20%

UNHABITAT 1,050,000 - 1,050,000 0%

Total 27,308,714,000 2,990,156,932 24,319,607,068 11%

STATUS OF NON TRANSFERS

Tranche/transfer payments for the Human Settlements Development Grant in respect of April to June were not made to Limpopo ( R225) and Mpumalanga (Total value is R305 million ).

Limpopo transfer was withheld as per National Treasury instruction. Mpumalanga’s human settlements development business plan was

considered but did not address Outcome 8 targets. It was referred back to the province for correction and resubmission. The revised business plan was received back and approved and the transfers have taken place in the beginning of July.

REASONS FOR UNDERSPENDING Cont….• In general what was and still of concern is the slow filling of

vacancies due to delays experienced in qualification verification by the South African Qualifications Authority (SAQA) for posts already interviewed and the continued lack of office-space.

• Special Investigation Unit (SIU) challenges of the SIU not providing the Department with invoices.

• The leasing of additional office accommodation was not effective as issues were still not resolved with the Department of Public Works at that time

• Slow implementation of the National Upgrading Support Programme.

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REASONS FOR UNDERSPENDING Cont…..

• The inability of SITA to provide resources at an adequate level to maintain the Housing Subsidy System (HSS) as stipulated in the SLA.

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Dept Expenditure per Programme: 30 September 2013

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Programmes Final Allocation1

Commitments2

Expenditure3 Variance = 1 - 3

% Spent

1. Administration 422,399,000 51 641 272 146 088 865 276 310 135 35%

2. Human Settlements Policy, Strategy and Planning 84,055,000 3 057 760 29 268 538 54 786 462 35%

3. Programme Delivery Support 226,632,000 16 051 125 44 199 444 181 502 556 20%

4. Housing Development Finance 27,377,377,000 1 289 367 928 9 070 650 363 18 307 656 637 33%

Total 28,110,463,000 1 360 118 084 9 290 207 210 18 820 255 790 33%

Transfer payments 30 September 2013 Transfer Payments Total Allocation Transferred Variance % Spent

Human Settlements Development Grant 16,983,872,000 7 633 586 000 9 350 286 000 45%

Urban Settlements Development Grant 9,076,906,000 1 026 538 500 8 050 367 500 11%

Rural Households Infrastructure Development 106,721,000 - 106 721 000 0%

Social Housing Regulatory Authority: Operational 32,151,000 - 32 151 000 0%

Social Housing Regulatory Authority: Capital Restructuring Grant 904,103,000 250 000 000 654 103 000 28%

Housing Development Agency 97,497,000 48 748 000 48 749 000 50%

National Urban Reconstruction and Housing Agency 100,000,000 100 000 000 - 100%

Nelson Mandela University 3,244,000 - 3 244 000 0%

Bursaries Scheme 4,220,000 2 623 149 1 596 851 62%

UNHABITAT 1,050,000 - 1 050 000 0%

Total 27,308,714,000 9 061 495 649 18 248 268 351 33%

HUMAN SETTLEMENTS DEVELOPMENT GRANT 2013/14 ALLOCATION

Provinces 2013/14

R`000 Allocation other outcomes Disaster Relief Total Allocation

EASTERN CAPE 2,429,631 94,172 2,523,803

FREE STATE 1,047,691 73,245 1,120,936

GAUTENG 4,108,339 60 4,108,399

KWAZULU-NATAL 3,183,708 51,720 3,235,428

LIMPOPO 1,289,076 35,666 1,324,742

MPUMALANGA 1,123,734 598 1,124,332

NORTHERN CAPE 378,534 17,190 395,724

NORTH WEST 1,198,229 26,308 1,224,537

WESTERN CAPE 1,925,971 - 1,925,971

Total 16,684,913 298,959 16,983,872

HUMAN SETTLEMENTS DEVELOPMENT GRANT

HSDG Allocation cont: 80/20 SplitProvinces 2013/14

R`000 Total Allocation by province

Normal Project allocation

Outcome 8 allocation Disaster Relief

EASTERN CAPE 2,523,803 1,979,716 449,915 94,172

FREE STATE 1,120,936 901,014 146,677 73,245

GAUTENG 4,108,399 3,116,973 991,366 60

KWAZULU-NATAL 3,235,428 2,617,245 566,462 51,720

LIMPOPO 1,324,742 816,955 472,121 35,666

MPUMALANGA 1,124,332 966,412 157,323 598

NORTHERN CAPE 395,724 325,539 52,995 17,190

NORTH WEST 1,224,537 1,030,477 167,752 26,308

WESTERN CAPE 1,925,971 1,593,599 332,372 -

Total 16,983,872 13,347,930 3,336,983 298,959

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HSDG ALLOCATION cont : Outcome 8

Provinces 2013/14

R`000

Upgrading of Informal Settlements

Rental and Social Housing Land National Priority

Program

EASTERN CAPE 145,778 170,074 24,296 109,767

FREE STATE 62,861 73,338 10,477 -

GAUTENG 246,500 287,584 41,083 416,198

KWAZULU-NATAL 191,022 222,860 31,837 120,743

LIMPOPO 77,345 90,235 12,891 291,651

MPUMALANGA 67,424 78,661 11,237 -

NORTHERN CAPE 22,712 26,497 3,785 -

NORTH WEST 71,894 83,876 11,982 -

WESTERN CAPE 115,558 134,818 19,260 62,736

Total 1,001,095 1,167,944 166,849 1,001,095

PRIORITY PROJECTS ALLOCATIONSProvince Town 2013/14

EASTERN CAPE Duncan Village 109,767 GAUTENG Lufhereng 182,944 Diepsloot 91,472 Sweetwaters 45,736 Khutsong 96,046 Sub Total 416,198 KWAZULU-NATAL Cornubia 120,743 LIMPOPO Lephalale 291,651 WESTERN CAPE Drommedaris 62,736

Total 1,001,095

HUMAN SETTLEMENTS DEVELOPMENT GRANT EXP: JUNE 2013

ProvincesDORA Allocation

2013/14

Funds withheld/ stopped

Year to date (1 April 2013 - 30 June 2013)

Transferred Funds Spent by ProvincesVariance

Spent vs Total Available

Unspent as % of Total

Available R'000 R'000 R'000 % R'000 % R'000

Eastern Cape 2,523,803 - 400,135 16% 322,069 13% 78,066 2,201,734

Free State 1,120,936 - 229,362 20% 90,547 8% 138,815 1,030,389

Gauteng 4,108,399 - 912,171 22% 614,238 15% 297,933 3,494,161

KwaZulu-Natal 3,235,428 - 677,183 21% 595,123 18% 82,060 2,640,305

Limpopo 1,324,742 224,971 - 0% 97,903 7% (97,903) 1,226,839

Mpumalanga 1,124,332 320,621 - 0% 77,893 7% (77,893) 1,046,439

Northern Cape 395,724 - 74,517 19% 61,840 16% 12,677 333,884

North West 1,224,537 - 304,246 25% 275,602 23% 28,644 948,935

Western Cape 1,925,971 - 342,968 18% 248,466 13% 94,502 1,677,505

Total 16,983,872 545,592 2,940,582 17% 2,383,681 14% 556,901 14,600,191

DELIVERY AS AT 30 JUNE 2013Province Annual Delivery Targets Delivery Performance as at 30 June 2013

Sites (units) Top Structure (units)

Total Delivery Targets

Sites (units) Top Structure (units)

Total Delivery Performance

Eastern Cape 17,265 20,412 37,677 1,780 1,969 3,749

Free State 8,794 10,157 18,951 701 723 1,424

Gauteng 15,460 28,023 43,483 829 3,974 4,803

KwaZulu-Natal 10,018 26,682 36,700 692 5,614 6,306

Limpopo 4,901 17,552 22,453 85 1,367 1,452

Mpumalanga 1,000 14,287 15,287 - 1,583 1,583

Northern Cape 7,987 3,673 11,660 90 455 545

North West 5,053 15,230 20,283 9 2,451 2,460

Western Cape 6,642 11,802 18,444 694 1,233 1,927

Total 77,120 147,818 224,938 4,880 19,369 24,249

Human Settlements Development Grant

• The total allocation in respect of the Human Settlements Development Grant for the 2013/14 financial year amounted to R16.9 billion and includes R299 million for the Disaster Relief allocation;

• The total amount transferred to Provinces as at 30 June 2013 amounted to R2.941 billion, which represents 17% as projection of the total allocation;

• Provinces spent R2.384 billion and this represents 14% of the total allocation and 86% of the projected figure;

• The variance of R 556 million is carried over to the following month however it still lies in the Primary bank account of the province and is only accessible upon requests that align to the goods and services payable;

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HSDG Cont.• The North West Province spent the highest at 90.6%.• Of the R275.6 million spent, the Province delivered a total of

2 666 units consisting of 71 serviced sites and 2 595 top structures against an annual target of 20 283;

• KwaZulu-Natal spent 88% and delivered 6 306 units consisting of 692 serviced sites and 5 614 top structures against an annual target of 36 700.

• Northern Cape spent 83% and delivered 481 units consisting of 90 serviced sites and 391 top structures against an annual target of 11 660.

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HSDG Cont.• The lowest spending Province is Free State at 39%.

• Mpumalanga Province’s business plan was approved on 26 June 2013 and funds were only transferred in the beginning of July 2013, however the actual expenditure is R77.8 million. The Province delivered a total of 1 583 top structures from an annual target set at 15 287 units and nothing was reported on sites.

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HSDG Cont.

• Although the Limpopo Province’s business plan was approved. No funds were transferred to the Limpopo Province as per National Treasury instruction issued on 19th April 2013, however the Province reported spending of R97.9 million and managed to deliver a total of 1 452 units consisting of 85 serviced sites and 1 367 top structures from an annual target of 22 453 units.

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Delivery Performance 2013/14 (Apr – July) vs. Estimated Delivery Performance 2013/14 (Apr – July) vs. Estimated TargetsTargets

Note: 2013/14 delivery figures are up to end July 2013 and are preliminary.

Target based on data used in Dept Presentation

National EC FS GP KZN LP MP NC NW WCNational Year End Targets (Sites & Houses) 224 938 37 677 18 951 43 483 36 700 22 453 15 287 11 660 20 283 18 444What should be delivered (estimated for 4 months)74 979 12 559 6 317 14 494 12 233 7 484 5 096 3 887 6 761 6 148Where we are (Delivery for Apr 2013 – July 2013) 36 343 5 092 1 657 6 610 8 687 1 673 5 732 857 3 276 2 759% delivery (deficit) -51.5% -59.5% -73.8% -54.4% -29.0% -77.6% 12.5% -78.0% -51.5% -55.1%Performance % against targets (Sites & Houses) 48.5% 40.5% 26.2% 45.6% 71.0% 22.4% 112.5% 22.0% 48.5% 44.9%

Delivery of Serviced Sites: Q1 to July 2013 National EC FS GP KZN LP MP NC NW WCServiced Sites: Target for 4 months 25 707 5 755 2 931 5 153 3 339 1 634 333 2 662 1 684 2 214Serviced Sites Completed 9 185 2 278 701 829 723 85 3 352 90 86 1 041Delivery Shortfall/Surplus (Sites) -16 522 -3 477 -2 230 -4 324 -2 616 -1 549 3 019 -2 572 -1 598 -1 173% Shortfall/Surplus - Sites -64.3% -60.4% -76.1% -83.9% -78.3% -94.8% 905.6% -96.6% -94.9% -53.0%Performance % against target (Serviced Sites) 35.7% 39.6% 23.9% 16.1% 21.7% 5.2% 1005.6% 3.4% 5.1% 47.0%

Delivery of Houses: Q1 to July 2013 National EC FS GP KZN LP MP NC NW WCUnits Completed: Target for 4 months 49 273 6 804 3 386 9 341 8 894 5 851 4 762 1 224 5 077 3 934Units Completed 27 158 2 814 956 5 781 7 964 1 588 2 380 767 3 190 1 718Delivery Shortfall/Surplus (Units) -22 115 -3 990 -2 430 -3 560 -930 -4 263 -2 382 -457 -1 887 -2 216% Shortfall/Surplus - Units -44.9% -58.6% -71.8% -38.1% -10.5% -72.9% -50.0% -37.4% -37.2% -56.3%Performance % against target (Housing Units) 55.1% 41.4% 28.2% 61.9% 89.5% 27.1% 50.0% 62.6% 62.8% 43.7%

Performance 1st quarter other milestones (Financial Interventions)

Delivery variables/milestonesFunds allocated Expenditure 2013/14

R'000

R'000 R'000

FLISP 20,461 3,004

Rectification Programme 158,377 131,961

Opscap 179,611 99,219

Blocked Projects 22,861 2,239

Land Parcels 77,501 4,085

Other 318,635 112,708

Total 777,446 353,216

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Challenges• Challenges as per provinces:

– Slow procurement processes – Poor Cash flow management – Non-availability of suitable land for human settlements

developments

• Department’s observations:– Lack of credible pipeline of projects– Poor planning and/or execution of the plans have always

been a problem– Performance reporting is not always in line with the

Business plans and this may suggest that plans are being developed for compliance purposes

55

Interventions• Provinces and Municipalities to align all grants to

ensure bulk infrastructure is in place before implementation of programmes and projects;

• Provinces and Municipalities must develop and align programme and procurement plans

• Feasibilties to ensure programme and project readiness.

• Programme Management Units to be established and prioritised.

• Provinces to utilise the HSS to administer and report on all human settlements delivery programme and processes.

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Human Settlements Development Grant Expenditure: 30 September 2013 (PRELIM)

57

Provinces

Total Available

Year to Date 1 April 2013 to 30 September 2013

Transferred Funds Spent by Provinces

Variance Spent vs Transferred

Variance Spent vs Total Available

Unspent as % of Total

Available

R'000 R'000 % R'000 % R'000 R'000Eastern Cape 2,523,803 996,012 39% 928,758 37% 67,254 1,595,045 63%

Free State 1,120,936 580,980 52% 233,669 21% 347,311 887,267 79%

Gauteng 4,108,399 2,072,499 50% 1,247,836 30% 824,663 2,860,563 70%KwaZulu-Natal 3,235,428 1,515,478 47% 1,325,555 41% 189,923 1,909,873 59%

Limpopo 1,324,742 - 0% 157,102 12% (157,102) 1,167,640 88%

Mpumalanga 1,124,332 555,185 49% 245,938 22% 309,247 878,394 78%

Northern Cape 395,724 164,341 42% 145,454 37% 18,887 250,270 63%

North West 1,224,537 655,168 54% 597,314 49% 57,854 627,223 51%

Western Cape 1,925,971 1,093,923 57% 939,582 49% 154,341 986,389 51%

Total 16,983,872 7,633,586 45% 5,821,208 34% 1,812,378 11,162,664 66%

Delivery Performance as at 31 August 2013

Province

Annual Delivery Targets Delivery Performance 31 August 2013

Variance Delivery sites

Variance Delivery Top Structure

Total Variance Delivery

Sites(units) Top Structure(units)

Total Delivery Targets

Sites Top Structure(units)

Total Delivery Performance

Eastern Cape 17,265 20,412 37,677 3,214 3,589 6,803 14,051 16,823 30,874

Free State 8,794 10,157 18,951 2,190 1,222 3,412 6,604 8,935 15,539

Gauteng 15,460 28,023 43,483 829 8,553 9,382 14,631 19,470 34,101

KwaZulu-Natal 10,018 26,682 36,700 908 9,895 10,803 9,110 16,787 25,897

Limpopo 4,901 17,552 22,453 85 1,692 1,777 4,816 15,860 20,676

Mpumalanga 1,000 14,287 15,287 3,487 3,120 6,607 2,487 11,167 13,654

Northern Cape 7,987 3,673 11,660 139 860 999 7,848 2,813 10,661 North West 5,053 15,230 20,283 86 4,012 4,098 4,967 11,218 16,185

Western Cape 6,642 11,802 18,444 1,152 2,397 3,549 5,490 9,405 14,895

Total 77,120 147,818 224,938 12,090 35,340 47,430 65,030 112,478 177,508

Performance of other milestones

Funds allocatedExpenditure

2013/14 R'000 R'000

FLISP 174,477 20,127 Rectification Programme 332,272 333,153 Opscap 315,598 197,521 Blocked Projects 25,719 1,163 Land Parcels 161,660 16,884

Disaster 96,474 5,941

Priority Projects 847,245 23,464 Total 1,953,445 598,253

Report as at 31 August 2013

Delivery variables/milestones

60

Urban Settlements Development Grant Expenditure: 30 June 2013

R'000 R'000 R'000 R'000 R'000 R'000

Buffalo City 499,474 267,314 766,788 499,474 558,609 208,179 73%Nelson Mandela 592,870 592,870 592,870 592,870 - 100%Mangaung 485,967 128,578 614,545 485,967 491,560 122,985 80%Ekurhuleni 1,212,537 1,212,537 1,212,537 1,141,847 70,690 94%City of JHB 1,290,748 76,439 1,367,187 1,290,748 1,322,632 44,555 97%City of Tshwane 1,051,070 10,118 1,061,188 1,051,070 1,061,188 - 100%eThekwini 1,287,560 28,369 1,315,929 1,287,560 1,315,929 - 100%City of Cape Town 971,980 70,869 1,042,849 971,980 976,571 66,278 94%

Total 7,392,206 581,687 7,973,893 7,392,206 7,461,206 512,687 94%

Total Allocated

Funds

Roll Overs Total Available

Funds

Transferred Funds

Spent by Municipalities

Unspent allocation

Municipalities

Year to Date (1 JULY 2012 - 30 JUNE 2013)Spent as %

of Total Available

USDG Exp cont..

61

2012/13 Adjusted Budget

Total Expenditure

Variance

R’000 R’000 R’000

Human Settlement 172,447 78,713 46% 93,734 54%

Public Transport Facilities 11,356 3,497 31% 7,859 69%Roads 223,694 214,777 96% 8,917 4%Waste Water 220,844 128,050 58% 92,794 42%Water 91,192 91,192 100% 0 0%Land Acquisition 22,281 17,304 78% 4,977 22%EPMO 24,974 3,296 13% 21,678 87%

2011/2012 USDG Reclaimed Vat 0 21,858 -21,858Total 766,788 558,687 73% 208,101 27%

BUFFALO CITY MUNICIPALITY

% of Variance

Services

% of Spent on Available

Funds

Non-Financial Performance - BCMThe 73% expenditure of the Metro was on the following:• 9.32kms of roads have been tarred;• 6.6kms of roads have been upgraded from gravel to surfaced;• 68km of roads have been built;• 347.53km of roads have been resurfaced;• 501 stands have been serviced; • 17 new water service points (taps) installed for informal settlements

dwellers;• 591 new households (RDP) have been provided with water

connections;• 160 new sanitation service points installed for informal settlements

dwellers;• 306 new households (RDP) have been provided with electricity

connections;• 254 street lights have been installed in new settlements.

USDG Exp cont..

63

2012/13 Budget

Total Expenditure

Variance

R’000 R’000 R’000

Human Settlements 134,869 148,889 110% -14,020 110%

Roads, Storm Water andTransport

98,500 96,305 98% 2,195 98%

Sanitation Service 203,600 176,534 87% 27,066 87%

Water Service 155,901 171,142 110% -15,241 110%

Total 592,870 592,870 100% 0 100%

% of Variance

NELSON MANDELA BAY MUNICIPALITY

% of Spent on Available

funds

Services

Non-Financial Performance - NMBM

• 3 080 new subsidised houses were provided with water and sewer connections.

• 132 870 households with solid waste removal.• 2 870 new erven connected to electricity. • 351 area lights. • 41 high mast.• 4km of roads surfaced.• 12km roads tarred.• 3 512 households with permanent water and sanitation

services.

Mangaung Municipality

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Services

2012/13 Budget % spent on

available funds

variance % of variance

spent R’000 R’000

Land parcels serviced 250,809 86% 35,420 14%Kilometers of roads developed 59,141 77% 13,840 23%Servicing of land for affordable housing 84,094 75% 20,848 25%Kilometers of roads developed 99,224 82% 18,159 18%Community & Sport Facilities 44,233 59% 18,191 41%Servicing of land for social / rental housing 8,500 43% 4,867 57%Land parcels released for development 720 50% 358 50%Land parcels acquired from private sector 16,747 87% 2,135 13%Upgrading of Informal Settlements 100 0% 100 100%

Disaster Management 500 0% 500 100%

Municipal land secured for development 10,288 53% 4,816 47%Priorities addressed by City Plans 15,000 74% 3,867 26%Compact City Strategy 1,052 100% 0 0%Reduction of time for approvals 2,000 83% 342 17%% of capital budget financed through cash 20,000 80% 4,009 20%Electricity 2,137 309% -4,467 -209%Total 614,545 80% 122,985 20%

Non-Financial Performance - Mangaung

• 158 771 households were provided with bulk water and sanitation.• 292 households assisted with VIP toilets.• 20km of roads surfaced.• 2.8km roads graveled.• 170 130 households were connected to electricity. • 2 Landfills sites were services.• 3 new townships established.

CITY OF JOBURG MUNICIPALITY

Services

2012/13 Adjusted Budget Total Expenditure

% Spent on Available

funds

Variance

% of Variance

R’000 R’000 R’000

Formalisation of Informal Settlements 19,502 19,502 100% 0 100%

Bulk Infrastructure:

Water, Electriciyt, Roads & Stormwater 1,009,523 988,111 98% 21,412 98%

Street Lighting 88,000 88,000 100% 0 100%

Mixed Rental / Hostel Upgrade 51,742 47,542 92% 4,200 92%

Land Acquisition 54,720 54,720 100% 0 100%

Upgradeof Community Hall, Libraries, & Sport fields 41,700 40,500 97% 1,200 97%

Upgrade of Clinics 27,000 25,681 95% 1,319 95%

Upgrade of Landfills 35,000 18,734 54% 16,266 54%

upgrade of Parks 40,000 39,842 100% 158 100%

Total 1,367,187 1,322,632 97% 44,555 97%

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Non-financial Performance – City of Johannesburg

• 4 055 units in informal settlements upgraded.• 3 110 households provided with water services.• 3 043 households provided with sanitation services.• 570 VIPs provided.• 1 532 households connected with electricity.• 3 205 street lights provided. • 2km roads surfaced.• 8km road gravelled.• 1 clinic built.

USDG Exp cont..

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EKURHULENI MUNICIPALITY

Department

2012/13 Budget

Total Expenditure % of

spending

Variance % of variance

R’000 R’000 R’000

Disaster & Emergency Management Services

13,000 13,000 100% 0 0%

Ekurhuleni Metropolitan Police Department

1,800 1789 99% 11 1%

Energy 238,774 235,479 99% 3,295 1% Environmental Resources Management

19,400 19,068 98% 332 2%

Human Settlements 53,708 50,367 94% 3,341 6%

Roads and Stormwater 403,050 394,036 98% 9,014 2%

Sports, Recreation, Arts and Culture

34,850 34,473 99% 377 1%

Transport 20,000 19,602 98% 398 2% Waste Management 2,700 2219 82% 481 18% Water & Sanitation 206,623 173,564 84% 33,059 16% Erwat - Wastewater treatment 50,000 50,000 100% 0 0% Chemical Toilets 168,657 148,250 88% 20,407 12% Total 1,212,562 1,141,847 94% 70,715 6%

Non-Financial Performance - Ekurhuleni

• 6 748 housing units in informal settlements have been upgraded.

• 3 360 housing sites serviced.• 61 hectares of land parcels acquired. • 612 households connected with electricity.• 49 high mast lighting provided.• 7 850 street lights replaced.

USDG Exp cont..

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Services2012/13

Adjusted Budget

Total Expenditure

% of spending

Variance

Housing 114.976 114.976 100% 0

Engineering 385.266 385.266 100% 0

Solid Waste 89.099 89.099 100% 0

Sanitation 379.921 379.921 100% 0

Water 122.705 122.705 100% 0

Electricity 133.528 133.528 100% 0

Cemeteries 1.942 1.942 100% 0

Community Halls 2.694 2.694 100% 0

Libraries 0.303 0.303 100% 0

Museums 4.234 4.234 100% 0

Parks 3.407 3.407 100% 0

Pools And Beaches 4.167 4.167 100% 0

Sport And Recreation 3.686 3.686 100% 0

Clinics 4.384 4.384 100% 0

Social & Security Services 9.453 9.453 100% 0

Economic Development 43.268 43.268 100% 0

ABM 3.668 3.668 100% 0

Business Support 0.884 0.884 100% 0

Governance 0.261 0.261 100% 0

Office Of City Manager 8.083 8.083 100% 0

Total 1,315.93 1,315.93 100% 0

ETHEKWINI MUNICIPALITY

Non-financial Performance – eThekwini

• 2 762 units provided with fully subsidised houses.• 4 019 households provided with bulk sanitation.• 2 ablution facilities provided in informal settlements. • 2 129 households provided with water connections.• 4 019 households provided with electricity

connections.

City of Cape Town MunicipalityDepartments 2012/13 Adjusted

Budget Total Expenditure % of spending Variance

Electricity 175,807 170,873 97% 4,934

Solid Waste Services 50,000 50,000 100% 0Water Services 195,836 171,295 87% 24,541Parks 33,530 32,625 97% 905Sport, Recreation and Amenities 70,401 70,330 100% 71Library and Information Services 1,840 0 0% 1,840Roads and Stormwater 213,343 203,182 95% 10,161Transport 2,376 1,532 64% 844City Health 10,700 10,545 99% 155Existing Settlements 26,508 16,404 62% 10,104New Settlements 158,478 144,924 91% 13,554Land and Forward Planning 24,855 18,359 74% 6,496

Urbanisation (incl in-situ upgrades) 21,029 19,255 92% 1,774

Urban Renewal Programme 1,650 1149 70% 501Social and ECD 922 890 97% 32Total Capital 987,275 911,363 92% 75,912

Pre-planning & Project Management Fees 32,074 29,097 91% 2,977

Province Allocation 23,500 36111 154% -12,611

Total 1,042,849 976,571 94% 66,278

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Non-financial Performance – City of Cape Town

• 6 394 sites serviced.• 204 households provided with solid waste

removal.• 446 households connected with electricity. • 626 taps provided.• 8 035 VIP toilets provided.

USDG Exp at 30 September 2013 (Prelim)..

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Municipality

Total Allocation

Transferred Funds

Spent by Municipality

Variance Spent vs

Transferred

Variance Spent vs

Total Available

Transferred as % of

Available funds

Spent as % of

Transferred funds

Spent as % of Total

Available

Unspent as % of

Transferred funds

R'000 R'000 R'000 R'000 R'000

Buffalo City 613,305 - 57,568 (57,568) 555,737 0.0% 0.0% 9.4% 0.0% 90.6%

Nelson Mandela Bay 727,986 109,198 80,618 28,580 647,368 15.0% 73.8% 11.1% 26.2% 88.9%

Mangaung 596,719 - 30,059 (30,059) 566,660 0.0% 0.0% 5.0% 0.0% 95.0%

Ekurhuleni 1,584,912 237,737 176,573 61,164 1,408,339 15.0% 74.3% 11.1% 25.7% 88.9%

City of JHB 1,488,877 148,888 118,996 29,892 1,369,881 10.0% 79.9% 8.0% 20.1% 92.0%

City of Tshwane 1,290,611 193,592 216,018 (22,426) 1,074,593 15.0% 111.6% 16.7% -11.6% 83.3%

eThekwini 1,580,999 158,100 130,221 27,879 1,450,778 10.0% 82.4% 8.2% 17.6% 91.8%

City of Cape Town 1,193,497 179,025 101,908 77,117 1,091,589 15.0% 56.9% 8.5% 43.1% 91.5%

Total 9,076,906 1,026,540 911,961 114,579 8,164,945 11.3% 88.8% 10.0% 11.2% 90.0%

YEAR TO DATE (01 JULY - 30 SEPTEMBER 2013) EXPENDITURE

Unspent as % of

Total Available

Interventions• Letters were written to National Treasury, BCM and

Mangaung informing them of the intention to withhold the first tranche payment of BCM and Mangaung.

• PMU has conducted project readiness in order to identify projects pipelines ready for implementation in order to re-allocate unspent funds where there is a need.

• The Department visited EC province and BCM to discuss the under spending by BCM. Projects were assessed for readiness in order to ensure that there is no under spending.

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Interventions

• Meeting with Mangaung on 09 September 2013 discussing the performance and the future of the withheld transfer.

• The quarterly performance reviews are conducted with the Metros.

• The Department has entered into a Memorandum of Understanding with the City Support Programme to assist with capacity constraints where needed.

77

Interventions

• The Performance Matrix were sent to the Metros. • Definition of indicators were finalized and sent to the

Metros.• Engagements on the finalization of the USDG policy.

78

PERFORMANCE IMPROVEMENT / REMEDIAL MEASURES

• Integration of planning, risk management, budgeting and reporting processes.

• Development of prolonged multi-media campaign.• Compulsory training on Bid specifications, evaluations and

adjudication from the level of Assistant Director and upwards • Address challenges relating to inter -governmental

collaborations as they impact on policy development processes and service delivery

• Development and implementation of appropriate systems and controls to monitor contracts performance

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PERFORMANCE IMPROVEMENT / REMEDIAL MEASURES

• Improve compliance by Provincial Departments and usefulness of HSS data

• Provision of capacity where required (e.g. a fully functional International Relations Directorate and IGR and Stakeholder Forums co-ordination unit).

• Sufficient monitoring presence in Provinces and Metros to reduce turnaround time in collection of information on performance

• Approved guidelines to standardise and guide the implementation of PHP across the sector

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THANK YOU

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