portfolio committee presentation presented by: sv mathobela ddg: asset management

Portfolio Committee Presentation

Presented by: SV Mathobela

DDG: Asset Management

PURPOSE

• Asset Register Enhancement • Valuations, • Condition Surveys and• The Inter-operability of Information Technology systems

using the E-Works platform. • Must find strategies of identifying government assets that

are presumed to still be unaccounted for and • Establish which government immovable assets have been

vandalized or lost in order to have a comprehensive Asset Register

SUMMARY • A 34% increase in information captured in an electronic database• Database now contains information on the utilisation of assets• Ability to allocate expenditure against individual properties • Ability to assess properties that have no strategic value and be

considered for land reform purposes and• Asset registers enhances State’s ability to manage properties leased

out to private entities and to generate accounts and record receipts electronically.

INFORMATION NOW AVAILABLE IN ASSET REGISTER:– Physical address of asset– Cadastral description of land parcels– Extent, current use and user of assets– Zoning of land / potential use of land– Photographs of asset from different elevations– Footprint sketch of site and improvements.

THE FOLLOWING STEPS WILL BE UNDERTAKEN

• Extract and sort the properties information in excel format with (PMIS)

• Decide on methodologies to be applied• Agree with approach and methodologies with the Auditor-

General and obtain funding from Treasury• Undertake the gathering and validation of relevant data

and• Appoint Private valuers to undertake the valuation.

THE REQUIRED CADASTRAL DATA

• Location• Title deed number• Extent of land • Description of property;• Usage (current and intended)• Age of improvements• Extent of improvements• Details of occupants• Details of income and expenditure (where applicable and if

relevant)• Condition of improvements• Municipal valuations

VALUATIONSTHE PORTFOLIO INCLUDES:• Functional/specialized properties• Commercial properties• Residential properties• Agricultural properties• Historical buildings• Vacant land• Other structures such as dams, roads.

CONDITION AUDITS• The purpose of the template is for the works managers to

complete the template and determine the scope of work for the repairs

• New Works and New Repair and Maintenance (RAMP) projects existing buildings audit must ensure:

• The status quo for each building/facility has to be established and

• All those buildings that are found (via the status quo reports) to be in need of upgrade; funds and manpower have to be invested to effect the required improvements.

ACCESS FOR PEOPLE WITH DISABILITIES

THE FOLLOWING CATEGORIES OF PEOPLE ARE AFFECTED

• Physically disabled • Ambulatory problems (from temporary to problems due to

age & infirmity)• Blind & partially sighted• Hearing impaired• Speech impaired• Intellectually challenged; and• Minors & the aged.

ASSET REGISTER ENHANCEMENT PROJECT

THE NDPW STAFF ARE REQUIRED TO• Collect and research basic land information per

property, whether improved or vacant, against the Deeds Office information for example,

• Measure floor areas of buildings occupied by NDPW’s client National Government Departments

• Establish and verify the occupancy of the identified State-owned properties and compare them with the user information of the immovable asset register

• Draw footprint sketches of improvement per property• Capture all (if any) servitudes or service right permits

affecting the properties, and • Capture the front and side elevation of improvements

on camera.

ACCOUNTANT GENERAL ESSENTIAL FIELDS

Information Fields A. General asset information 1. Asset number

2. Formal property description 3. Extent of property B. Type of asset 1. Type of asset C. Description of asset

1. Name of building and street address 2. Extent of building

D. Ownership 1. Ownership 2. If state owned – title deed number and registered owner name

E. Encumbrances 1. Leases over state-owned

Name of lessee Contract details Nature of lease Term of lease Expiry date Special conditions Rental per month/ annum and escalation rate Reference to agreement, property and debtors

F. Management responsibility 1. User departments

PROGRESS

REGION NO OF UNITS TO BE MEASURED

ACTUAL NUMBER OF UNITS MEASURED TO DATE

OUTSTANDING

Free State (PE) 623 622 1 Free State (Bloemfontein) 2, 190 2184 6 Gauteng (JHB) 5, 711 5, 711 6 Gauteng (Pta) 6, 926 6, 827 54 KwaZulu Natal (Durban) 3, 907 3, 902 5 Limpopo (Polokwane) 4, 541 4, 488 53 Mpumalanga (Nelspruit) 1, 832 1, 825 7 North West (Mmabatho) 2, 627 2, 486 141 Northern Cape (Kimberley) 2, 289 2, 289 0 Umtata 519 519 0 Western Cape 2, 390 2, 273 117 TOTAL 33, 555 33, 171 384

IDENTIFICATION OF ASSETS UNACCOUNTED FOR

• The objective is to draw up a list of all grey immovable assets within the Republic of South Africa and internationally, thereby, implementing required legislative oversight for better service delivery and enhanced shareholder value. The identification of “hidden, unknown lost and/or missing properties” is a huge task which requires good planning from the onset.

• Situational Analysis requires DPW’s capability to acquire primary source information from the public through existing systems. One such system is the Call Centre.

• The approach of this process should cover the entire extent of the Republic and should not only be former TBVC focused. The former TBVC territories will require a modified process of verification due to the land administration practices prior 1994.

• The project plan will have to take account of the change of the provision made for essential services that occurred after 1994.

…IDENTIFICATION OF ASSETS UNACCOUNTED FOR

• This exercise will focus on the payroll transfers for the nominal rental paid by the civil servants and matched to the properties, erf and title deed numbers of the administrative systems of DPW and Land Affairs to reconcile with National and Provincial governments with a particular emphasis on Foreign Affairs and Intelligence asset registers. In order to achieve this, the project plan must encompass the following strategies:

• From 1977 to 1994 a comprehensive audit should be conducted whose primary target is the administrative systems for SAPS and Correctional Services, with the secondary target being the rest of Government.

• For the period from 1994 to the present, to target the whole of the State in cognizance of the change of the criteria for the allocation of assets taking into consideration exceptions such as relocations.

• DPW establishes all SARS records for transfers and donation to the State and track if they ever made it to the State Register. In other words, verification of whether donations were intercepted or not.


• DPW engages the Intelligence Structures to sort reclassification of the former National Intelligence Services (NIS), Military Intelligence (MI) Immovable Asset Registers.

• This is to reconcile in the current National Intelligence Agency and Military Intelligence Immovable Asset Registers to identify those assets not captured on the current system.

• The primary focus of this stream of work is to identify the assets outside the borders of the Republic, which for political reasons prior to 1994 were not registered in the name of the RSA.

• For this stream of work, only security cleared individuals in agreement in the Intelligence community will handle it.


• The lack of comprehensive information and collection of data necessitates the need for the institutional framework to assist in the assets identification strategy, given the recurrent nature of this problem. Therefore, some of the strategies to identify assets and sensitize the public are outlined below.

…IDENTIFICATION OF ASSETS UNACCOUNTED FOR• As an integral part of the whole identification strategy, DPW has

identified certain statutory institutions as being central to the resolution of the above mentioned problem.

• Two such bodies are the National Assembly and the National Council of Provinces.

• The National Assembly and the National Council of Provinces may determine the time and duration of these sittings and its recess periods. Furthermore, these bodies must facilitate public involvement in the legislative and other processes of the Assembly and the council and its committees and conduct its business in an open manner, and hold its sittings, and those of its committees, in public.

..IDENTIFICATION OF ASSETS UNACCOUNTED FOR

• It is against this background that we must implore parliamentarians to use their recess periods and public involvement in soliciting location of the yet unidentified assets, particularly in the former homelands.


• Meetings must be convened between the National Council of Provinces and the portfolio Committee of Public Works with the intention of soliciting support by integrating this project as part of their programme and that it should be given priority. The Director-General, through the Minister’s office can request such meetings where technocrats will make presentations.


• South African Local Government Association (SALGA) is an organization mandated by the new South African Constitution to assist in the wholesale transformation of local government in South Africa from the pre-1994 regime to the new dispensation under the country’s first democratically elected government.


• Since the constitution envisages an important role for organized local government in the new South Africa, with unique focus on developmental service delivery, the National Department of Public Works must, therefore, approach SALGA with a view of utilizing their extensive public reach of two hundred and eighty four municipalities (6 metropolitans, 47 District and 231 smaller municipalities) to penetrate and search for the unidentified assets.

• This will help to identify and record most, if not all government properties within all the local municipalities in collaboration with SALGA.


• In respect of SALGA, the Director-General is requested to mandate DDG: Asset Management to initiate and ensure that a meeting takes place between DPW and SALGA.


• Media can play a huge role in helping DPW ascertain the existence of “hidden, unknown or missing” properties through the placement of newspaper articles and broadcasting advertisements.

• The Department of Social Services on social grants and SAPS on unlicensed firearms were reportedly successful in this.


• There is a need for the establishment of a multi skilled task team comprising various players in the field such as IT, PPM and the regions that will comprise a steering committee. The technical task team must appoint dedicated property auditors who will be responsible for conducting the searches and reconciling them.


• The function of the task team will be to identify and reconcile the assets register with the deeds office records by running computerized searches (reconcile information available in the Deeds Office against the PMIS, Valuation Rolls of the municipalities against PMIS and the Deeds Office against the Valuation Roll of the municipalities) of all state owned properties.


• To reinforce the line function management of PPM, it is suggested that there be formed a project office comprising a project manager, using the existing Director .

INABILITY TO IDENTIFY PROPERTIES IS AS A RESULT OF A COMBINATION OF THE

FOLLOWING FACTORS:

– Theft

– Abuse / Vandalism

– Loss

– Corruption

– Entitlement

– Political history and sabotage

– Ignorance

– Forgotten

IE-WORKS PROJECT • To modify E-Works system and implement for use by the National

Department and provincial departments who need an immovable asset management system.

• Ensure interoperability with provinces. • Integrate the core systems of the Department (PMIS and WCS). • Build based on IAMS Requirements specifications.• Ensure alignment with IFMS.• There needs to be common terminology of Asset Management. • Who will be responsible for (Ownership) of the system. • Business Rules sign-off and link to legislation, specifically GIAMA. • In terms of other systems, will they continue to exist in the long term.• Asset Register based on Minimum Reporting Requirements done. • The module is on test mode already. Currently verifying business rules• The iE-Works Shell system is also completed. • System Requirements Specifications finalised (Version 1). • PMIS and WCS conversion underway.• Interfaces between the existing systems and iE-Works also underway.

COMMUNICATION IMPLICATIONS

• The amnesty call must be implemented through various media including Radio, Television, Newspapers and Pamphlets.

RECOMMENDATIONS

• The Director General approves the appointment of consultants to conduct a conditions audit of all DPW’s immovable assets

• Funds procured for the purpose of conducting proper valuations and access to buildings for people with disabilities

• In line with the Minister’s call for amnesty on the identification of missing assets, the departments issues communiqué through all forms of media to notify the RSA public of the said amnesty and

• The iE-Works project is enhanced.

FunctionalitySubsystems

NDPWIntegrated Asset Management

System (IAMS)

ExternalInterface

National TreasuryBAS

ExternalInterface

Land AffairsDeed RegistrationSystem (AKTEK)

Water Based System

Supplier Database(Currently - Consultantand Supplier Rosters)

2004/07/22

NDPW Perspective of IAMS

portfolio committee presentation presented by: sv mathobela ddg: asset management

Documents

properties information

user information

deeds office information

individual properties

government assets

government immovable

current use

repairs new works