portfolio committee on public works 11 th march 2014 cape town

I Public Works I CGO I Pretoria1

2

Layout

Part A

Performance Information

•Highlights of Programmes 1 - 5

Part B

Financial Information

•DPW•PMTE

3

PurposePurpose

Purpose of the Presentation by the Department of Public Works

-To reflect on the 3rd Quarter Performance and Financial information of the Department of Public Works in the financial year 2013/14 in order for the Portfolio Committee to advise on improving performance

Objective of the Portfolio Committee on Public Works

-To have an understanding and measure the 3rd Quarter Performance and Financial performance of the Department for the financial year 2013/14.

4

Methodology of Assessing the Quarterly Reports

3 Phase Approach as per the Approved Department’s Policy Framework For Monitoring, Reporting and Evaluation of Performance Information 2013 and M&E Toolkit, PFMA and Framework for Strategic Plans and Annual Performance Plans

•Phase 1 (Data Collection & Compliance) – 13th January 2014 – Submissions by all units•Phase 2 (Data Cleansing and Analysis) – 14th – 21st January October 2014•Phase 3 (Accountability Process) – 23rd – 31st January 2014

Key Focus

•Adherence/Compliance to the Policy framework for monitoring, reporting and evaluation of performance information in the Department of Public Works •Effective use of the M&E toolkits to measure and judge progress (Actual versus Target) in order to learn, improve reporting, innovate and adapt to change•Encourage the use of quality performance information for decision making and resource management•Project the various related components of Performance Information (M&E System) - for example, the inputs, processes, activities, outputs, outcomes, and impacts that constitute projects, programmes, and services•To test the appropriateness of the indicators•To provide an assessment on the overall performance of the Department

5

This programme serves to provide strategic leadership and support services, including for the accommodation needs and overall management of the Department of Public Works. It is responsive to meet strategic objective 6 of the Department of Public Works and has links with all four other departmental programmes. Sub-Programmes

• Internal Audit and Investigation Services• Strategic Management Unit• Monitoring and Evaluation• Intergovernmental Relations• Finance and Supply Chain Management• Corporate Services

6

Highlight/Achievement – Programme One: Administration The sub-programmes are largely supportive in nature and play a critical role in enabling the core business of the Department to achieve its objectives.

Highlights/Achievements

•Fraud Awareness Workshops - (Internal Audit pages 7 - 9)

•Functional Organisational structure that responds to the business of the Department (HRD– page 19)

•Increased participation of employees in Employment Health and Wellness programmes such as

• Screening for emotional and substance abuse • Debt Management• Physical Wellness (Gender – page 20)

•Approved SCM policy accompanied by a series of workshops and consultations on the Framework for Acquisition and Contract Management (Finance and SCM – pages 29 - 31)

7

This programme is the largest programme of the Department of Public Works and appropriates at least 48 percent of the departmental allocation budget. It provides and management government’s immovable property portfolio in support government social, economic, functional and political objectives. In line with the mandate of the Department of Public Works, this programme seeks to achieve the first four strategic objectives of the Department of Public Works Sub-Programme

•Strategic Asset Investment Analysis•Project and Professional Services•Inner-City Regeneration•Operations Management•Key Accounts management •Prestige Management

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Programme Two:Programme Two: Immovable Asset Management

The strategic objective of this programme is to provide leadership in effective and efficient Immovable Asset Management and in the delivery of infrastructure programmes


•Secondary Service Providers appointed in September 2013 to conduct physical verification on DPW's immovable assets resulting in 114% achievement in Q3 (Strategic Asset Investment Analysis – pages 34- 38)

•Inspection reports (main & follow up inspections) for state and leased facilities and construction projects completed. A total of 1 943 or 109% (cumulative) inspections reports done for state and leased facilities and 279 or 196% inspection report done for construction projects. These over-achievements were a result of increased complaints from clients (Statutory compliance – pages 47 - 48)

•Prestige Policy that spells all the standards and norms in their operations to fulfil its mandate completed - (Prestige management – page 55)

9

Programme 3 ensures the creation of work opportunities and the provision of training for unskilled, marginalised and unemployed people in South Africa by coordinating the implementation of EPWP. This programme focuses predominantly on the achievement of strategic objective 4

10

Programme Three:Programme Three: EPWP

EPWP plays a critical role of :

•Promoting an enabling environment for the creation of short and sustainable work opportunities that eventually contribute to the national goal of job creation and poverty alleviation. •Providing technical support to Municipalities in planning and implementing labour-intensive projects.


•In the third quarter significant progress was made by municipalities in reporting their progress to the Department enabling the Department to reflect on a definite figure about the performance of the programme – 49% more that the planned quarter target(EPWP – page 58)

•Also, a large number of work opportunities were created with substantial improvements in the EPWP participation among designated groups - however challenges are still being experienced in with People with Disabilities group (EPWP – page 59)

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This programme promotes the growth and transformation of the construction and property industries, promote uniformity and best practice in construction and immovable asset management in the public sector. This programme contributes to the realisation of strategic objectives 2, 4 and 5

12

Programme 4: Property and Construction PolicyProgramme 4: Property and Construction Policy

This programme ensures transformation and regulation of the Construction and Property industries to ensure economic growth and development.

It is a dependent programme and largely a process or chain-event driven in nature. It often experiences challenges such as delays in stakeholder feedback on a particular policy and political considerations. Its function has huge impacts in the built environment.


•The Built Environment Policy finalised and submitted for internal approval- (PCIPR – page 62)

•Second draft of IDT Business Case developed - (PCIPR – page 62)

13

This programme provide for various services, including compensation for losses on the Government assisted housing scheme and assistance to organisations for the preservation of national memorials. Meet the protocol responsibilities for state functions.

14

Programme 5: Programme 5: Auxiliary and Associated Services


•Infrastructure support provided to 2 planned & 6 unplanned Prestige Events - (AAS– page 64)

EVENT DATE

1 Extended Cabinet Meeting (Lekgotla). 04 October 20132 RSA – Sweden Bi-National Committee. 11 October 20133 France State Visit 14 October 20134 Ambassadors Credentials Ceremony.. 17 October 20135 Belgium Visit. 24 October 20136 National Consultative Forum on Mining. 08 November 20137 RSA – Botswana Bi-National Committee. 11 November 20138 Centenary Celebrations of the Union Buildings & the Unveiling

of former President Mandela’s statue. 16 December 2013

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General RemarksGeneral Remarks

• While acknowledging the challenges in the Department, there is some improvement in the manner how the Department deals with performance information

•The Department has taken into consideration the recommendations by the Portfolio Committee on Public Works, Parliament of South Africa regarding the quality of the reports

Throughout the financial year, while taking these contributions into account, the Department continues to find ways of improving in areas of concern and effectively contribute to service delivery

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Part B

1 Financial Performance Report 2013/14 DPW

2 Expenditure per Programme

3 Earmarked expenditure

4 Financial Performance Report 2013/14 PMTE

CONTENT

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1. Financial Performance Report 2013/14

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Summary Expenditure per Economic Classification

Economic classificationBudget

Allocation

Exp. as at 31 December

2013

% Spent as at 31

December 2013

% Spent as at 31

December 2012

R'000 R'000 % %

Compensation of employees 1 473 467 1 084 358 74% 78%

Goods and services 874 653 495 165 57% 54%

Goods and services: Office Accommodation 504 900 211 361 42% 29%

Transfers and subsidies 2 544 889 2 277 868 90% 85%

Infrastructure 676 206 268 237 40% 38%

Machinery and equipment 102 146 50 392 49% 23%

Total 6 175 261 4 398 345 71% 71%

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Summary Expenditure per Programme

Economic classificationBudget

Allocation

Exp. as at 31 December

2013

% Spent as at 31

December 2013

% Spent as at 31

December 2012

R'000 R'000 Prog 1. Administration 1 158 162 650 553 56% 46%

Prog 2. Immovable Asset Management 2 981 770 2 126 730 71% 73%

Prog 3. Expanded Public Works Programme 1 947 969 1 556 685 80% 77%

Prog 4. Property and Construction Industry Policy Regulation

36 682 25 434 69% 55%

Prog 5. Auxiliary and Associated Services 50 678 38 943 77% 136%

Total 6 175 261 4 398 345 71% 71%

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Notes to the expenditure

• The overall expenditure for the department as at the end of December 2013 is R4.3 billion and the expenditure is equivalent to 71% of the total adjusted allocation.

• Compensation of employees’ expenditure for the month ended December is R1 billion and the amount spent is equivalent to 74% of the total adjusted allocation. Expenditure for compensation is within the guide line of 75% for the third quarter.

• Goods and Services expenditure for the month ended December is R495 million and expenditure is equivalent to 57% of the total allocation.

• Expenditure for Office Accommodation for the month ended December 2013 is R211 million, and expenditure is equivalent to 42% of the total allocation of R504 million.

• Expenditure for transfers and subsidies for the end of December is R2.2 billion and expenditure is equivalent to 90% of the total allocation.

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• Transfers and subsidies to the following institutions has been paid in full in line with the schedule:

Augmentation of Property Management Trading Entity R682 millionEPWP Non-state Sector R438 millionConstruction Industry Development Board R72 millionCouncil for the Built Environment R37 millionIndependent Development Trust R50 millionCommonwealth War Grave R18 millionParliamentary Villages R8 millionConstruction Education Training Authority R1.4 million

• The following transfers have not been paid in full:EPWP Integrated Grant to Municipalities R386 millionEPWP Integrated Grant to Provinces R327 millionEPWP Social Sector R239 million

• The balance were paid between January and February 2014

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• Infrastructure expenditure for the end of December is R279 million and expenditure is equivalent to 41% of the allocation of R 676 million.

• Under spending of approximately R150 million is projected under the infrastructure budget.

• A request for R50 million has been requested to be adjusted to Transfers and subsidies as additional funding to Independent Development Trust.

• The request for the adjustment of funds to Independent Development Trust is in line with the financial constraints faced by the entity.

• Machinery and equipment expenditure for the end of December is R50 million and expenditure is equivalent to 49% of the total allocation of R102 million .

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2. Expenditure per programme

25

Expenditure per Economic Classification: Programme 1

Economic classificationBudget Allocation

Exp. as at 31

December 2013

% Spent as at 31

December 2013

% Spent as at 31

December 2012

R'000 R'000

Compensation of employees 227 403 173 142 76% 72%


Goods and services: Office Accommodation

504 900 211 361 42% 29%

Transfers and subsidies 1 156 709 61% 892%

Machinery and equipment 40 075 18 546 46% 61%

Total 1 158 162 650 553 56% 46%

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• The total expenditure for Programme 1 is R651 million and expenditure is equivalent to 56 % of the allocation for the programme.

Current payments• Compensation of employees expenditure is R173 million and expenditure

is equivalent to 76% and the expenditure. The expenditure for compensation of employees is 1% higher than the guideline of 75%.

• Goods and services expenditure is R247 million and expenditure is equivalent to 59% of the allocation of R385 million.

• Expenditure for Goods and services under Office Accommodation is at R211 million which is 42% of the total allocation of R504 million

Transfers and subsidies• Transfers and services expenditure for R709 000 and expenditure is

equivalent to 61% of the allocated budget of R1.1 million.Payments for Capital Assets

• Machinery and equipment expenditure is R19 million and expenditure is equivalent to 46% of the allocated budget of R40 million.

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Expenditure per Economic classification: Programme


Exp. as at 31

December 2013

% Spent as at 31

December 2013

% Spent as at 31

December

2012R'000 R'000

Compensation of employees 1 124 251 827 078 74% 80%


Transfers and subsidies 855 064 855 163 100% 88%

Infrastructure 676 206 279 201 41% 38%

Machinery and equipment 59 324 30 960 52% 13% Total 2 981 770 2 126 730 71% 73%

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The total expenditure for Programme 2 is R2.1 billion and expenditure is equivalent to 65% of the allocated budget for the programme.Current payments•Compensation of employees expenditure is R27 million and expenditure is equivalent to 74%. •Goods and services expenditure is R134 million and expenditure is equivalent to 50%. Transfers and subsidies•The expenditure for transfers and subsidies is R855 million and expenditure is equivalent to 100% of the allocated budget. Funds to entities below have been paid in full in line with the drawings:

Council for the Built Environment R37 million Commonwealth War Grave R18 million CIDB R72 million Aug Prop Man Trade Entity R682 million Independent Development Trust R50 million Parliamentary Villages R8 million

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Payments for Capital Assets•Infrastructure expenditure for the end of December 2013 is R279 million and expenditure is equivalent to 41% of the allocation of R676 million. •Under spending is projected in Infrastructure budget at the end of the financial year.•Adjustment of R50 million from Infrastructure to Transfers and subsidies for the Independent Development Trust has been made to National Treasury.•Machinery and equipment expenditure is R31 million and expenditure is equivalent to 52% of the allocated budget of R59 million.

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Expenditure per Economic classification: Programme 3


Exp. as at 31

December 2013

% Spent as at 31

December 2013

% Spent as at 31

December 2012

R'000 R'000



Transfers and subsidies 1 664 208 1 392 548 84% 80%

Machinery and equipment 2 622 847 32% 94%

Total 1 947 969 1 556 685 80% 77%

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Total expenditure for programme three is R1.6 billion and against the budget of R1.9 billion which is 80% of the allocated budget for the programme.Current payments•Compensation of employees for programme three is R78 million and expenditure is equivalent 70%. Expenditure for compensation of employees is within the guideline of 75%. •Goods and services expenditure for the end of December is R86 million and expenditure is equivalent to 50% of the total allocation. A request to move R10 million from EPWP goods and services to Programme 2 for compensation of employees budget has been made to National Treasury. the requested funds is in line with the requested as per projected over spending on compensation of employees.Transfers and subsidies•Transfers expenditures is R1.4 billion against the budget of R1.7 billion which is equivalent to 84% of the allocation. Expenditure for transfers and subsidies is in line with the payment schedule.Payment for Capital Assets•Machinery and equipment expenditure for Programme 3 is R847 000 and expenditure is equivalent to 32% of the allocated budget of R2.6 million.

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Summary Expenditure per Economic Classification: Programme 4


Exp. as at 30

September2013

% Spent as at 30

September2013

% Spent as at 30

September

2012

R'000 R'000



Transfers and subsidies 200 10 425 5213% 0%

Machinery and equipment 125 39 31% 45%

Total 36 682 25 434 69% 55%

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Total expenditure for programme four is R25 million which is equivalent to 69% of the adjusted budget allocation of R37 million.Current Payment•Compensation of employees expenditure is R6.4 million and expenditure is equivalent to 60% of the total budget of R11 million.•Goods and services expenditure for December is R8.5 million and expenditure 33% of the allocated budget. Transfers and subsidies•Transfers and subsidies expenditure is R10 million and expenditure is equivalent to 5213% of the allocated budget of R200 000. High expenditure relate to Agrement SA and expenditure is classified as irregular expenditure under transfers and subsidies since the budget is classified under goods and services.Payment for capital Assets•Expenditure for machinery and equipment R39 000 and expenditure is equivalent to 31% of the allocated budget of R125 000.

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Summary Expenditure per Economic Classification: Programme 5


Exp. as at 31

December 2013

% Spent as at 31

December 2013

% Spent as at 31

December 2012

R'000 R'000


Transfers and subsidies 23 261 19 023 82% 77%

Total 50 678 38 943 77% 135%

35


Total expenditure for programme five is R39 million against the budget of R51 million which is equivalent to 77% of the allocated budget.Current Payment

• Goods and services expenditure for the end of December is R20 million and expenditure is equivalent to 73% of the allocated budget of R27 million.

• Expenditure for goods and services relates to State Functions.Transfers and subsidies

• Expenditure for transfers and subsidies is R17 million and expenditure relates to payment made for Commonwealth Wargrave and Construction Education and Training Authority (CETA).

• Payments for transfers and subsidies in this programme have been made in full.

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3. Earmarked Budget and Expenditure

37

Earmarked Budget and Expenditure

Budget 2013/14

% Spent as at 31 December

2013


2013

R`000 R`000 %

CIDB 72 316 72 316 100%

CBE 37 959 37 959 100%

IDT (Bridging finance) 50 000 50 000 100%

Agrement Board 10 398 10 398 100%

Parliamentary Village 8 198 8 198 100%

Aug of PMTE 682 426 682 426 100%

EPWP - Incentives to Provinces 355 914 327 803 92%

EPWP - Incentives to Municipalities 610 674 386 745 63%

EPWP - Non- State sector 438 281 438 281 100%

EPWP - Social Sector to Provinces 257 564 239 590 93%

38

Earmarked Budget and Expenditure

Budget 2013


2013


2013

R`000 R`000

Office Accommodation 504 900 211 360 42%

DPW Infrastructure 676 206 279 199 41%

IDT Intermediaries 10 169 10 169 100%

Audit Fees: Financial Accounting 40 260 48 736 121%

Boundary Fencing 7 000 3 622 52%

State Function 27 132 15 615 58%

CETA 2 750 1 468 53%

Common Wealth War Grave 20 510 17 555 86%

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PMTE: Financial Performance Report 2013/14

40

Financial Performance of the PMTEBudget Claimed to date Actual

Received/Paid

R’000 R’000 R’000

Revenue 7,917,522 5,917,623 5,494,6269

State Accommodation Charges 3,747,851 2,807,828 2,758,664

Private Accommodation Charges 3,271,085 2 316 751 1 954 087

Management Fees (Municipal) 173,075 110 618 99 449

Augmentation 682,426 682,426 682,426

Other 43,085 0 0

Expenditure 5,586,045

Cleaning & Gardening 124,715

Private Leases 2,487,565

Rehabilitation, Repair and Maintenance 2,276,056

Property Rates 697,481

Municipal Services (Arrears) 76

Other (Interest, etc.) 152

Deficit as at end of December 2013 (91,419)

PMTE Bank Balance (Overdraft) (1,034,988),

41

Expenditure Analysis of the PMTE

Allocation Expenditure % Exp % Exp 12/13 Projection

Projected under /

(over) Exp

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

Total Expenditure 7,944,963 5,586,045 70% 75% 8,315,323 -370,360

Cleaning and Gardening 245,000 124,715 51% 51% 166,287 78,713

Leasing (Private owned) 3,271,085 2,487,565 76% 75% 3,316,753 -45,668

Maintenance 3,342,507 2,276,056 68% 77% 3,732,609 -390,102

Planned 2,011,141 1,294,288 64% 79% 2,312,402 -301,261

Rehabilitation 428,932 262,614 61% 68% 461,335 -32,403

Day-to-Day 902,434 719,154 80% 76% 958,872 -56,438

Municipal Services arrears 0 76 0 0% 76 -76

Property Rates 1,086,372 697,481 64% 79% 1,099,447 -13,075

Current 781,938 644,304 82% 77% 795,014 -13,075

Arrears 304,433 53,178 17% 112% 304,433 0

Other 12,265 152 1% 9% 12,265 0

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• Expenditure trends against the overall budget are lower than the previous year, indicating that the budget may be underspent.

• Cleaning and Gardening are at 51% expenditure against budget. • EPWP is busy with an initiative to spent an amount of R 15m before

the end of the year in areas where it will have an impact on service delivery.

• Leasing expenditure is slightly higher than the estimated budget for the year. This budget will be closely monitored to ensure that no over-expenditure takes place.

• The Day-to-day maintenance budget is still under pressure. This will be closely monitored during the last quarter of the financial year and funding will be re-allocated from the Planned Maintenance budget if necessary.

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• Expenditure against Planned Maintenance are lower than the guideline percentage of 75%

- A straight line projection of the current expenditure level indicates a possible under-expenditure of R 359 m on this budget.

- Funds will possibly be moved to the Day-to-day maintenance budget during the last quarter.

• Expenditure against Property Rates (64%) this is not in line with the previous years’ trend.

- The average expenditure for this time of the financial year is 75%. - The reason for the low expenditure is due to the R200 m added on this budget for

the payment of arrears rates. - The expenditure against current accounts are in line with previous years and past

trends

• The amount allocated against “other” is mainly for the implementation of the Billing and Accounting system. The tender was awarded in November 2013 and expenditure will start during January 2014

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Planned Maintenance Budget per Region

Planned Maintenance Budget per Region

Allocation Expenditure Straight line projections

R'000 R'000 Exp. % R'000

Head Office 17% 416 273 187 757 45% 250 343

Bloemfontein 4% 95 691 76 203 80% 101 604

Cape Town 20% 483 936 350 088 72% 466 784

Durban 19% 468 004 375 628 80% 500 837

Johannesburg 11% 274 796 161 190 59% 214 920

Kimberley 2% 43 641 26 108 60% 34 811

Mmabatho 2% 56 110 31 795 57% 42 393

Nelspruit 2% 39 070 25 556 65% 34 075

Polokwane 2% 42 840 15 571 36% 20 761

Port Elizabeth 9% 219 981 138 165 63% 184 220

Pretoria 10% 239 086 137 305 57% 183 073

Umtata 2% 60 643 35 121 58% 46 828

Total 2 440 073 1 560 489 64% 2 080 652

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Planned Maintenance per Region

• 83% of this budget is allocated to the Regional Offices.

• The Head Office budget also includes the provision for Write-offs and Water

Treatment plants (consumables)

• The three main regions in terms of allocation are Cape Town, Durban and

Johannesburg. They are responsible for 20%, 19% and 11% of the budget

respectively. Combined, they manage 50% of the total Planned Maintenance

budget.

• These Regions are at 72% expenditure against budget as at 31 December 2013

(75% time lapsed)

46

Accommodation Charges (State Owned) – Top 10 Clients

Client Invoiced Amount Received

% Rec

Outstanding

R'000 R'000 R'000 SA Police Service 735 451 735 451 100% - Justice and Constitutional Development 199 415 187 155 93% 12 260

Defence 190 346 189 722 99% 624

Home Affairs 130 592 106 010 81% 24 581

Statistics SA 123 293 75 846 61% 47 447

Water Affairs 105 957 105 917 99% 40

Rural Development and Land Reform 98 115 98 115 00% -

Labour (Excl Seta's) 95 928 14 194 14% 81 733

Correctional Services: Office Rentals 59 576 41 360 69% 18 216Agriculture, Forestry and Fisheries 56 063 45 846 81% 10 217

Grand Total 1 794 742 1 599 621 89% 195 120

47

Accommodation Charges (State Owned)

• Total Invoiced amount issued for current year is R 2.316 billion• Dec 2013 Invoices were issued during Jan 2014, therefore do not

form part of the issued invoices by end of Dec 2013 .• Total amount received is R 1.820b and 12% of it is towards the

prior year balance.• 89% of current year invoices were paid at the end of Dec 2013.• 55% of the current month issued invoices were recovered.• 80% of the 30 days issued invoices were recovered.• 91% of the >60 days issued invoices were recovered.• Only 19% of prior year balance was paid at the end of Dec 2013• Top ten clients represents 78% of all invoicing of the 52 clients.• An amount of R53m disputed in the previous year is now billed as

per clients request and R42m recovered.

48

Accommodation Charges (Private) – Top 10 Clients

Client Invoiced Amount Received % Rec Outstanding

R'000 R'000 R'000

SA Police Service 735 451 735 451 100% -

Justice and Constitutional Development 199 415 187 155 93% 12 260

Defence 190 346 189 722 99% 624

Home Affairs 130 592 106 010 81% 24 581

Statistics SA 123 293 75 846 61% 47 447

Water Affairs 105 957 105 917 99% 40

Rural Development and Land Reform 98 115 98 115 100% -

Labour (Excl Seta's) 95 928 14 194 14% 81 733

Correctional Services: Office Rentals 59 576 41 360 69% 18 216

Agriculture, Forestry and Fisheries 56 063 45 846 81% 10 217

Grand Total 1 794 742 1 599 621 89% 195 120

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Accommodation Charges (Private)

• Total Invoiced amount issued for current year is R 1.376b covering April 2013 to Aug 2013 only

• Sept 2013 Invoices were issued during Oct 2013, therefore do not form part of the issued invoices by end of Sept 2013

• The total amount received is R 1.2b and 20% of this amount is towards the prior year balance

• 70% of current year invoices were paid at the end of Sept 2013

• Only 20% of prior year balance was paid at the end of Sept 2013. Meetings will be scheduled with Clients to collect outstanding amounts based on the reconstructed balances

• Top ten clients represents 77% of all invoicing of the 52 clients.

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Municipal Services – Top 10 Clients

Client

Total Amount claimed (incl mgt

fees)

Amount Received

Man fee received Outstanding

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

SA Police Service 598 910 437 054 20 812 161 856

Justice and Constitutional Dev 180 104 154 431 7 353 24 220

Home Affairs 33 060 24 000 1 142 9 059

Arts and Culture 25 393 18 610 886 6 782Health 7 484 2 487 118 4 952

National Prosecuting Authority 8 033 4 273 203 3 760

Stats SA 16 868 14 138 673 2 677

National Treasury 7 545 5 534 263 2 011

SA Social Security Agency-JHB 1 810 440 20 1 369

Agriculture 18 697 11 811 562 1 193

Grand Total 655 752 425 295 32 037 217 884

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Municipal Services

• Total claims issued for the current year amount to R2,322b including management fees.

• The top 10 clients account for 93% of the claims issued.• 99% of the claims issued for April have been recovered.• 100% of the claims issued for May have been recovered.• 99% of the claims issued for June have been recovered.• 100% of the claims issued for July have been recovered.• 99% of the claims issued for August have been recovered.• 99% of the claims issued for September have been recovered.• 68% of the claims issued for October have been recovered• 63% of the claims issued for November have been recovered• R16.8m of the expenditure incurred during this financial year have not been

claimed due to the disputes that have been received from the client departments. This represent 0.76% of the total expenditure incurred.

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PACE (Capital Infrastructure Budget) – All Clients

Client Invoiced Amount Received % Rec Outstanding

R'000 R'000 R'000SA Police Service 517 551 441 823 85 75 727Public Works 261 227 260 486 100 740

Correctional Services 195 508 195 508 100 -

Arts & Culture 110 600 55 693 50 54 907

Justice and Constitutional Development 91 948 91 948 100 -

Home Affairs 23 155 18 921 82 4 234Defence 9 942 8 609 87 1 332Labour 2 840 2 840 100 0

Rural Development and Land Reform 1 852 1 852 100 -

Higher Education and Training 978 - - 978

Grand Total 1 215 606 1 077 685 89% 137 920

53

PACE Recoveries• Dec 2013 Invoices were issued during Jan 2014, therefore do not form

part of the issued invoices by end of Dec 2013 • Total Invoice amount issued for current year is R 1.216b • Total amount received is R 1.353b and 20% of it was paid towards

prior year balances• Top ten clients make 99% of 12 total clients.• 89% of current year invoices were paid at the end Dec 2013• 48% of the current month issued invoices were recovered• 91% of the 30 days issued invoices were recovered• 97% of the >60 days issued invoices were recovered• All prior year invoices are fully paid, with an overpayment of R28m

(The overpayment will be cleared to another account after the conversion to the new version of BAS takes place)

• Conversion balances have been rolled over during November 2013, pairing of balances is still underway.

54

Other Recoverable* - All Clients

Amount Claimed

Amount received

Outstanding Balance

R'000 R'000 R'000

Defence 235 564 126 356 109 207

Government Printing 6 313 - 6 313

Home Affairs 24 - 24

Justice and Constitutional Justice 763 - 763

National Prosecuting Authority 2 076 2 076 0

Parliament 489 104 385

SA Police Services 952 511 441

Rural development 1 398 - 1 398

Statistics South Africa 4 - 4

Grand Total 247 583 129 047 118 536

* Infrastructure projects not included in Clients’ Capital budget allocation

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Recoverable CA

• All the claims from April 2013 until October 2013 have been issued to all the Clients

• Total invoices issued for the current year from April 2013 to October 2013 amount to R 247 583 253.35

• R 129 047 849.78 has been paid towards these invoices.• NPA invoices have all been paid• 54% of invoices issued to SAPS have been paid• 21% of Invoices issued to Parliament have been paid• None of the invoices issued to Stats SA, Home Affairs and Rural

Development have been paid• Government Printers is disputing the total cost of their project (i.e. the

opening balance and the new expenditure)• Only 52% of invoices issued for Defence have been paid.

56

Debtors Age Analysis

Current 30 Days >60 Days Total 2013/14

Previous Years

Total

R’000 R’000 R’000 R’000 R’000 R’000

Accommodation (State Owned) - - 49 166 49 166 16 958 66 124

Accommodation (Private) 135 565 56 750 159 902 352 217 958 077 1 310 294

Municipal Services 281 704 183 391 8 969 474 064 350 780 824 844

PACE 113 120 14 438 10 525 138 084 -28 005 110 079

Recoverable: CA 43 711 36 599 151 871 232 181 211 978 444 159

Total 574 100 291 178 331 267 1 196 546 1 492 830 2 689 376

% 21% 11% 12% 44% 56%

57

DPW Capital Budget

Allocation Expenditure % Exp

R'000 R'000

Departmental 157 000 58 566 26%

Accessibility 25 000 6 737 27%

Dolomite Risk Management 116 000 16 714 31%

Land ports of Entry (BCOCC) 202 206 146 327 72%

Prestige 113 000 53 446 47%

Inner City Regeneration 63 000 17 014 31%

435 0

Total 676 206 299 239 44%

58

Client Capital Budget

Allocation Expenditure % Exp

R'000 R'000

Agric, Forestry and Fishing 6,994 1,884 27%Arts & Culture 264,220 120,014 45%Correctional Services 709,688 218,175 31%Defence 29,210 22,511 77%Health 152 - 0%Higher Education 4,000 978 24%Home Affairs 63,349 24,750 39%Justice 268,673 111,141 41%Labour 3,416 3,049 89%Rural Development 7,653 2,382 31%SA Police Service 724,848 583,297 80%Total 2,082,204 1,088,182 52%

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Client Capital Budget per Region

% of total budget

Allocation Expenditure

R'000 R'000

Head Office 5% 94,818 32,990Bloemfontein 8% 164,986 46,450Cape Town 13% 262,589 127,333Durban 22% 468,381 317,156Johannesburg 8% 173,002 96,130Kimberley 2% 50,174 31,130Mmbatho 6% 123,390 48,726Nelspruit 5% 109,782 6,818Polowane 4% 84,133 30,847Port Elizabeth 6% 121,865 33,229Pretoria 20% 419,296 315,966Umtata 1% 9,788 1,407

Total 2,082,204 1,088,182

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

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Thank You

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


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

61

Approved Presentation

MR MZIWONKE DLABANTU

DIRECTOR-GENERAL

DEPARTMENT OF PUBLIC WORKSDATE



portfolio committee on public works 11 th march 2014 cape town

Documents

financial performance

overall performance

quarter performance

department hrd page

wellness programmes

departmental programmes

annual performance plansphase

subprogrammes internal