vote no. 11 annual report 2014/2015 financial year...flisp financed-linked individual subsidy...

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VOTE NO. 11

ANNUAL REPORT

2014/2015 FINANCIAL YEAR

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Contents

PART A: GENERAL INFORMATION ................................................................................................... 4

1. DEPARTMENT GENERAL INFORMATION .............................................................................. 5

2. LIST OF ABBREVIATIONS/ACRONYMS .................................................................................. 6

3. FOREWORD BY THE MEC ....................................................................................................... 8

4. REPORT OF THE ACCOUNTING OFFICER .......................................................................... 11

5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY OF THE ANNUAL REPORT ............................................................................................................................... 15

6. STRATEGIC OVERVIEW ......................................................................................................... 16

6.1 Vision ................................................................................................................................ 16

6.2 Mission .............................................................................................................................. 16

6.3 Values ............................................................................................................................... 16

7. LEGISLATIVE AND OTHER MANDATES ............................................................................... 17

8. ORGANISATIONAL STRUCTURE .......................................................................................... 19

PART B: PERFORMANCE INFORMATION ....................................................................................... 20

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ................................... 21

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE ............................................................. 21

2.1 Service Delivery Environment .......................................................................................... 21

2.2 Service Delivery Improvement Plan ................................................................................. 22

2.3 Organisational environment .............................................................................................. 23

3. STRATEGIC OUTCOME ORIENTED GOALS ........................................................................ 23

4. PERFORMANCE INFORMATION BY PROGRAMME ............................................................ 26

4.1 Programme 1: Administration ........................................................................................... 26

4.2 Programme 2: Human Settlements .................................................................................. 31

4.3 Programme 3: Cooperative Governance .......................................................................... 38

4.4 Programme 4: Traditional Affairs ...................................................................................... 44

5. TRANSFER PAYMENTS ......................................................................................................... 47

5.1. Transfer payments to public entities ................................................................................. 47

5.2. Transfer payments to all organisations other than public entities .................................... 47

6. CONDITIONAL GRANTS ......................................................................................................... 47

6.1. Conditional grants and earmarked funds paid .................................................................. 47

6.2. Conditional grants and earmarked funds received ........................................................... 47

7. DONOR FUNDS ....................................................................................................................... 48

7.1. Donor Funds Received ..................................................................................................... 48

8. CAPITAL INVESTMENT .......................................................................................................... 48

8.1. Capital investment, maintenance and asset management plan ....................................... 48

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PART C: GOVERNANCE .................................................................................................................... 49

1. RISK MANAGEMENT............................................................................................................... 50

2. FRAUD AND CORRUPTION ................................................................................................... 51

3. MINIMISING CONFLICT OF INTEREST ................................................................................. 51

4. CODE OF CONDUCT .............................................................................................................. 52

5. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ............................................................. 52

6. PORTFOLIO COMMITTEES .................................................................................................... 53

7. SCOPA RESOLUTIONS .......................................................................................................... 53

8. PRIOR MODIFICATIONS TO AUDIT REPORTS .................................................................... 60

9. INTERNAL CONTROL UNIT .................................................................................................... 60

10. INTERNAL AUDIT AND AUDIT COMMITTEES ...................................................................... 62

11. AUDIT COMMITTEE REPORT ................................................................................................ 65

PART D: HUMAN RESOURCE MANAGEMENT ................................................................................ 69

1. INTRODUCTION ...................................................................................................................... 70

2. OVERVIEW OF HUMAN RESOURCES .................................................................................. 70

3. HUMAN RESOURCES OVERSIGHT STATISTICS ................................................................ 71

PART E: FINANCIAL INFORMATION .............................................................................................. 103

1. REPORT OF THE AUDITOR GENERAL ....................................................................................... 104

2. ANNUAL FINANCIAL STATEMENTS .................................................................................... 109

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PART A: GENERAL INFORMATION

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1. DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS: 20 Rabe Street

Polokwane

0699

POSTAL ADDRESS: Private Bag X9485

Polokwane

0700

TELEPHONE NUMBER/S: +27 15 284 5000

FAX NUMBER: +27 15 293 1520

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS : www.coghsta.limpopo.gov.za

mailto:[email protected]

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2. LIST OF ABBREVIATIONS/ACRONYMS

AFS Annual Financial Statements

AGSA Auditor General of South Africa

BBBEE Broad Based Black Economic Empowerment

CDP Community Development Programme

CDW Community Development Worker

CFO Chief Financial Officer

CoGHSTA Cooperative Governance Human Settlements and Traditional Affairs

CRU Community Residential Units

DORA Division of Revenue Act

EAP Employee Assistance Programme

EU European Union

EXCO Executive Council

FLISP Financed-Linked Individual Subsidy Programme

GITO Government Information Technology Office

HDA Housing Development Agency

HOD Head of Department

HSDG Human Settlements Development Grant

HSS Housing Subsidy System

IDP Integrated Development Plan

IGR Intergovernmental Relations

ISHS Integrated Sustainable Human Settlements

LED Local Economic Development

LGTAS Local Government Turnaround Strategy

LUMS Land Use Management Scheme

MEC Member of the Executive Council

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MIG Municipal Infrastructure Grant

MPAC Municipal Public Accounts Committee

MTEF Medium Term Expenditure Framework

NDoHS National Department of Human Settlements

NHFC National Housing Finance Corporation

NUSP National Upgrading Support Programme

PFMA Public Finance Management Act

PGP Provincial Growth Points

PMU Project Management Unit

POA Programme of Action

SISP Strategic Information Systems Plan

SDF Spatial Development Framework

SCM Supply Chain Management

SMME Small Medium and Micro Enterprises

SAIGA Southern African Institute of Government Auditors

SCOPA Standing Committee on Public Accounts

SDIP Service Delivery Improvement Plan

SIU Special Investigations Unit

SITA State Information Technology Agency

SLA Service Level Agreement

TR Treasury Regulations

USDG Urban Settlement Development Grant

CWP Community Works Programme

WSP Workplace Skills Plan

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3. FOREWORD BY THE MEC

Name: Ms. MG Makhurupetje

Title: Member of the Executive Committee

The second year of the current Administration coincides with the 60th anniversary of the

Freedom Charter, the ruling African National Congress’s Bible founded in Kilptown in

1955. The Freedom Charter is more relevant today as it was then for its call for a just

society based on the bill of rights which is enshrined in the country’s Constitution. As we

move forward with the actualisation of the Freedom Charter, ours is to ensure that we

sustain the good work of the past 21 years as we make our due contribution towards

changing the living conditions of our people, mindful of the fact that we must do things

differently and faster because a better life for all cannot be delayed any longer. In moving

forward to restoring the dignity of our people, we must at all times refer to our core

mandates which are:

Outcome Eight: “Create Sustainable Human Settlements and Improve the Quality of

Household Life” and

Outcome Nine: “A Responsive, Accountable, Effective and Efficient Local Government

System”.

Human Settlements

The Freedom Charter is unequivocal in its expression that “there shall be houses,

security and comfort”, and as the Department we declare that this shall be our rallying

song throughout.

In addition to the Freedom Charter, we allude to the following:

All people shall have the right to live where they choose, be decently housed, and to

bring up their families in comfort and security;

Unused housing space will be made available to the people to build their own houses;

Rent shall be lowered;

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Slums shall be demolished, and new suburbs built where there shall be adequate

transport, roads, lighting, playing fields, crèches and social centres;

Fenced locations and ghettoes shall be abolished, and laws which break up families shall

be repealed.

As a Department we are committed to building on the progress achieved in the 21years

of democracy, while recognising that more still needs to be done, particularly with the

implementation of the National Development Plan, Vision 2030.

We shall make strides in developing our housing infrastructure that supports the

development of human capital, including access to water, sanitation and that supports

economic growth and development as well as quality of life of citizens.

Human settlement must be understood in the context of social development and radical

economic transformation as well as meeting the objectives of rolling back the quagmire of

underdevelopment.

Currently 9 000 units are at construction stage, and we have committed the entire budget

for the rural housing projects. By March 2015 over 1900 units were completed while

others were at foundation, wall plate and roof level.

We are planning to transfer 3 700 housing units to beneficiaries through the Enhanced

Extended Discount Benefit Scheme and Registration and Endorsement Programme.

Our Department is undoubtedly poised for a development trajectory that reflects the

steady progress in infrastructure investment. It is within this context that of the R1,385

billion allocated to the programme, R1,285 billion is the Human Settlements Development

Grant earmarked for funding the human settlement programme, as guided by the

Outcome 8 of the Medium Term Strategic Framework.

Co-operative Governance

The Department recommits itself to the 10 high-level developments targets as presented

by the Premier during the State of the Province Address. Key amongst these

development plans to the Department is:

Increased access to basic water to 90% by 2020;

Increased access to electricity to 90% by 2020;

Increased access to sanitation to 50% by 2020.

In this regard we are delighted with some of the developments regarding provision of

water in the Province.

We continue to regard Local Government as an important sphere of government as they

are very close to the people. We will continue to support this sphere so that it discharges

its duties, mainly through the Back to Basics programme in order to:

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provide democratic and accountable government for local communities;

provide services to communities in a sustainable manner;

promote social and economic development;

encourage the involvement of communities and community organisations in

matters of local government.

Be that as it may, here and there we come across challenges as we discharge our duties.

As a Province we are experiencing a decline in housing delivery from the previous two

financial years which resulted from the withholding of the Human Settlements

Development Grant, and the subsequent housing pilot procurement project by the

Section 100 Intervention Task Team which could not yield the expected results on the

appointment of contractors to build 10 500 units.

I take this opportunity to express my sincere gratitude to the Premier of our Province,

Honourable Chupu Mathabatha for entrusting me with the Department of Cooperative

Governance, Human Settlements and Traditional Affairs. As we celebrate the 60th

anniversary of the Freedom Charter, we are mindful of the task that lies ahead, and we

declare that until the people of Limpopo are liberated from all forms of social and

economic oppression, we shall never give up.

It is my utmost honour and privilege to present this Annual Report of the Department of

Cooperative Governance, Human Settlements and Traditional Affairs for the 2014/15

Financial Year.

Ms. MG Makhurupetje MEC: Co-operative Governance, Human Settlements and Traditional Affairs Date: 31 July 2015

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4. REPORT OF THE ACCOUNTING OFFICER

Name: Mr. M.G. Makoko

Title: Acting Head of Department

Overview of the operations of the Department:

The 2014/15 Annual Report presents the performance of the Department in its efforts to fulfil its

constitutional mandate and its vision for integrated, sustainable human settlements in line with

outcome 8, 9 and 12. The Department has recorded significant progress on improving financial

management in municipalities through continuous capacitation initiatives as well as monitoring

and evaluation of this important sphere of government.

In support to initiatives of job opportunities created, the Province has received additional funding

from CoGTA on CWP, which provided about 21 000 job opportunities to participants.

The institutions of Traditional Leadership have been supported through coordination of

stakeholders to participate in the initiation schools management. Additional compensation for

Traditional Leaders has been streamlined with the pronouncement made by the President.

The Human Settlements sector has had its fair share of challenges for the past two financial

years. However the Department is ready to turn the situation around to ensure that services are

delivered to the people of Limpopo as expected.

The system of governance and accountability has matured in the Department, which is congruent

to the expectations by the public at large. This is credited to the management team of the

Department as well as oversight institutions who quality-check the Departments’ obligations

initiatives regularly.

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Overview of the financial results of the Department:

Departmental receipts

Departmental receipts

2014/2015 2013/2014

Estimate Actual Amount

Collected

(Over)/Under Collection

Estimate

Actual Amount

Collected

(Over)/Under Collection

R’000 R’000 R’000 R’000 R’000 R’000

Sale of goods and services other than capital assets

1 274 1 273 1 988 1 083 (94)

Transfers received - - - 2 000 (2 000)

Fines, penalties and forfeits - - - 11 - 11

Interest, dividends and rent on land 129 93 36 61 231 (170)

Sale of capital assets 268 268 - 225 - 225

Financial transactions in assets and liabilities

1 254 1 501 (247) 1 215 1 247 (32)

Total 2 925 3 135 (210) 2 500 4 561 (2 060)

The Department has collected R3.135 million (2013/14: R4.561 million) which is 7.15% more than

planned. The better than anticipated performance is mainly due to money received from the

National Department Human Settlements in respect of debt recoveries by the SIU.

Revenue Tariff policy

The Department has implemented transversal tariffs as determined and approved by the

Provincial Treasury during the year under review.

Irrecoverable debts written off

A total of R6.5 million was written off as irrecoverable debts in terms of the transversal debt

management policy approved by Provincial Treasury.

No new measures were instituted during the course of the year to raise additional revenue.

However, the transversal revenue management policy was implemented to ensure more

efficient/effective revenue collection.

Capital assets amounting to R268 000 were sold during the year under review.

Programme Expenditure

Programme Name

2014/2015 2013/2014

Final Appropriation

Actual Expenditure

(Over)/ Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Administration 276 838 274 729 2 109 261 201 256 757 4 444

Human Settlements (verify) 923 829 676 932 246 897 776 695 394 695 382 000

Co-Operative Governance 232 805 232 313 492 239 642 233 880 5 762

Traditional Institutional Development 342 044 341 498 546 311 455 301 306 10 149

Total 1 775 516 1 525 470 250 046 1 588 993 1 186 638 402 355

The Department spent R1.525 billion (2013/14: R1.187 billion) of the total allocation of R1.776

million which represents 85.9% (2013/14: 74.7%). The spending trend at programme level has

been depicted in the table above.

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The expenditure of R1.525 billion includes R66 million which was defrayed from prepayments

made to ESKOM in prior years.

The underspending is mainly in the Human Settlements programme due to late appointment of

service providers for low cost housing projects. The underspent amount is committed to the

existing housing projects and the roll-over of these funds has since been approved.

Virements

Reason for the virement

The virements were effected for the defrayment of excess expenditure in respect of leave

gratuities as well as transport costs within Goods and Services. Savings realised were

utilised to write off irrecoverable debts.

Unauthorised, fruitless and wasteful expenditure

The Department incurred fruitless and wasteful expenditure of R4m during the year under review

as disclosed in the Annual Financial Statements.

Future plans of the Department

Regular monitoring of service providers to ensure compliance with the service contracts with the

Department as well as close monitoring and support of municipalities and traditional leadership

institutions to ensure continued improvements in service delivery.

Supply chain management

o The major challenge experienced in SCM was late procurement of low cost houses as

already stated

o The SCM processes and systems are in place to prevent irregular expenditure and there is

strict adherence to legislation and policies.

Programme Name

2014/2015

Adjusted Appropriation

Virements Final Appropriation

Actual Expenditure

Available Budget

R’000 R’000 R’000 R’000

Administration 277 537 (699) 276 838 274 729 2 109

Human Settlements 923 130 699 923 829 676 932 246 897

Co-operative Governance 232 755 50 232 805 232 313 492

Traditional Institutional Development 342 092 (50) 342 094 341 498 546

Total 1 775 516 - 1 775 516 1 525 470 250 046

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Events after the reporting date

There were no events (adjusting and non-adjusting), favourable and unfavourable that occurred

after the reporting date and the date of approval of the Annual Financial Statements.

Makoko M.G. Accounting Officer Department of Co-operative Governance, Human Settlements and Traditional Affairs Date: 31 May 2015

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5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF

ACCURACY OF THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed throughout the Annual Report are consistent.

The Annual Report is complete, accurate and is free from any omissions.

The Annual Report has been prepared in accordance with the guidelines on the Annual

Report as issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the

modified cash standard and the relevant frameworks and guidelines issued by the

National Treasury.

The Accounting Officer is responsible for the preparation of the Annual Financial

Statements and for the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of

internal control that has been designed to provide reasonable assurance as to the

integrity and reliability of the performance information, the human resources information

and the Annual Financial Statements.

The external auditors are engaged to express an independent opinion on the Annual

Financial Statements.

In my opinion, the Annual Report fairly reflects the operations, the performance

information, the human resources information and the financial affairs of the Department

for the financial year ended 31 March 2015.

Yours faithfully

Accounting Officer

Name: Makoko M.G.

Date: 31 May 2015

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6. STRATEGIC OVERVIEW

6.1 Vision

Integrated Sustainable Human Settlements

6.2 Mission

To be effective agent of change that delivers quality services to citizens of Limpopo

through:

i. Promoting developmental cooperative governance,

ii. Supporting municipalities and traditional leadership institutions, and

iii. Optimally deliver integrated and sustainable human settlements

6.3 Values

Our values are underpinned by the Batho Pele Principles.

Service Excellence:

We shall strive to attain recognized standards of service quality, and maintain continuous improvement in service delivery.

Innovation:

We shall toil in the pursuit of excellence and innovation on the use of information and communication technology to enhance public service delivery.

Integrity:

We shall conduct our business with integrity at all times to inculcate a culture of

honesty and accountability among all our employees. Prudence:

We shall exercise prudence and economy in running the business of the Department

and in pursuance of its goals and the objectives of government.

Transparency:

We shall always ensure transparency in everything we do in order to build trust and confidence with all our stakeholders.

Fairness and consistency:

We shall treat all our beneficiaries, suppliers and employees with fairness and equity at all times.

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Professionalism

We shall ensure that employees demonstrate high level of professionalism when interacting with all stakeholders

7. LEGISLATIVE AND OTHER MANDATES

Constitutional Mandates

Section of the Constitution

Direct responsibility in ensuring compliance

Chapter 2, section 26

This section puts direct responsibility on the Department in ensuring that everyone has access to adequate housing, which is carried out through the ISHS programme

Chapter 7, section 154

The section directs the Provincial Government to support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions.

Legislative Mandates

Relevant Act Key Responsibilities

A. The Public Service Act of 1994 as amended and regulations

To provide for the organization and administration of the public service of the Republic, the regulation of the conditions of employment, terms of office, discipline, retirement and discharge of members of the public service.

B. The Public Finance Management Act 1 of 1999 (as amended) and Regulations

To regulate financial management in the national government and provincial government, to ensure all revenue, expenditure , assets and liabilities of those governments are managed efficiently

C. The Housing Act of 1997

To promote and facilitate the provision of adequate housing within the framework of national housing policy.

D. The Local Government Municipal Structures Act of 1998

The MEC for local government in a Province, by notice in the Provincial Gazette must establish a municipality in each municipal area which the Demarcation Board demarcates in the Province in terms of the Demarcation Act.

E. The Local Government Municipal Systems Act of 2000

The MEC for local government in the Province may, subject to any other law regulating provincial supervision of local government – assist a municipality with the planning, drafting, and adoption of mid review of its 5 year integrated development plan.

F. The Disaster Management Act 2002

To provide for an integrated and coordinated disaster management policy that focuses on preventing or reducing the risk and mitigating the severity of disasters, emergency preparedness, rapid and effective response to disasters and post-disaster recovery; the establishment of national, provincial and municipal disaster management centres, disaster management volunteers, and matters incidental thereto.

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Relevant Act Key Responsibilities

G. Spatial Planning and Land Use Management Act of 2013

To provide a framework for spatial planning and land use management in the Republic; to specify the relationship between the spatial planning and the land use management system and other kinds of planning; to provide for the inclusive, developmental, equitable and efficient spatial planning at the different spheres of government.

H. Traditional Leadership and Governance Framework Act 41 of 2003

To provide for the recognition of traditional communities; to provide for the establishment and recognition of traditional councils; to provide a statutory framework for leadership positions within the institution of traditional leadership.

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8. ORGANISATIONAL STRUCTURE

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PART B: PERFORMANCE INFORMATION

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1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

Refer to part E

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 Service Delivery Environment

The Department is charged with the responsibility of ensuring that citizens are sheltered,

municipalities are able to provide services in accordance with their constitutional

mandate, promote co-operative governance and providing support to traditional

leadership and their communities.

2.1.1 Human settlements

As a sector there are vast issues from the economy that can affect the delivery of

services. The years 2013/14 and 2014/15 have been rather challenging for the

Department. Although the economic environment did not have huge impact on the

delivery of services, the organizational environment had a huge impact. In the medium

and long term the situation will have an impact on issues of addressing housing demand,

human settlements planning, reduction of housing backlog, and promotion of economic

opportunities.

2.1.2 Co-operative Governance

Back to Basics

In response to the launch of the Back to Basics approach by the Minister of CoGTA, the

Department has facilitated the adoption of the approach in the Province. As a result an

assessment was conducted in all municipalities. This assessment has assisted in

determining the state of municipalities to inform direct interventions

2.1.3 Traditional Leadership Institutions

Traditional Leaders continue to play an important role in the development of communities. To date the number of recognised Headmen/Headwomen has increased from 1480 to 1509. The Department has processed the outstanding arrear payments of Headmen/Headwomen, adjusted their salaries and simultaneously exploring all the available avenues to ensure that all challenges regarding tools of trade are addressed. The Province is inundated with teething problems of Traditional Leadership claims and disputes, hence the Kgatla Commission was established to adjudicate over these disputes. The Commission has to date received 508 and has finalised 175 cases.

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2.2 Service Delivery Improvement Plan

The Department has completed a service delivery improvement plan. The tables below

highlight the service delivery plan and the achievements to date.

Main services and standards

Main services Beneficiaries Current/actual standard of

service

Desired standard of

service

Actual achievement

Installation of

services in

Lephalale for

rental units

(CRU)

Hostel dwellers

and community

members

514 services 514 services Bulk services

installed,

reticulation

phase to

commence

during

2015/16

Improve

compliance on

all governance

issues in 30

municipalities

Municipalities 5 unqualified

reports and 2

clean audits

30 clean audits 12

municipalities

achieved

unqualified

audit

opinions

Batho Pele arrangements with beneficiaries (Consultation access etc.)

Current/actual arrangements

Desired arrangements

Actual achievements

Community participation meetings

One public participation

3 events held at Motetema, Bloodriver and Lebowakgomo Zone S

Service delivery information tool

Current/actual information tools

Desired information tools

Actual achievements

CoGHSTA news, brochures Print media, Electronic media

COGHSTA newsletter X2

Brochures: 5 X Disaster management and social housing

Electronic newsletters: 8 issues of CoGHSTA online published

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Complaints mechanism

Current/actual complaints mechanism Desired complaints mechanism

Actual achievements

Departmental toll free number: 0800687432

[email protected]

Short message system

Not implemented, complaints were dealt with manually e.g. 225 walk ins received & resolved

2.3 Organisational environment

In the year under review the Department fully implemented the new organogram and the

establishment is updated.

3. STRATEGIC OUTCOME ORIENTED GOALS

The Department has considered the strategic direction of the Human Settlements, Co-operative

Governance and Traditional Affairs sectors to align and contribute to national imperatives.

Furthermore, the strategic intent of the Department was reviewed during 2013/14 in preparation

for the new electoral cycle which has commenced during the year under review. These goals

have taken into account the socio-economic environment of the Province.

Goal Goal Statement Outputs Progress

1. A professional

public service

that is proactive,

responsive and

geared towards

the realisation of

a developmental

state

To ensure continuous

professional support and

an enabling environment

for efficient and effective

service delivery

1.1 Implemented

Performance Management

Systems in the Department

annually

67% (47 of 70) of

organisational targets

achieved.

1 816 employees received

performance awards

All queries lodged through

Departmental, Premier and

Presidential hotlines have

been resolved

1.2 Financial management

support and advisory

services for effective

accountability

Achieved unqualified audit

outcome without matters of

emphasis for 2013/14

financial year, an

improvement from 2012/13.

Voted budget expenditure

improved from 74% in

2013/14 to 86% in 2014/15

All undisputed invoices paid

within 30 days as per

standard

2. Integrated Eradicate informal 2.1 Housing development Multi-Year Housing

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human

settlements with

socio-economic

opportunities

settlements and facilitate

equitable access to

adequate housing in an

integrated and sustainable

manner.

properly planned by October

each year

Development Plan

reviewed in accordance

with the new priorities of the

MTSF

10 000 sites identified for

development

4 informal settlements in

mining towns of

Fetakgomo, Greater

Tubatse, Lephalale and

Elias Motsoaledi have been

identified for formalisation

to enable implementation of

various projects of human

settlements. In addition

Elias Motsoaledi and

Greater Tubatse

municipalities have been

supported through NUSP

2.2 Housing backlog

reduced by 80,000 units

through implementation of

different housing

programmes by 2019

2 125 houses completed in

the Province

10 232 subsidies approved

for qualifying beneficiaries

2.3 Security of tenure

promoted through effecting

transfer of 3,500 housing

properties annually to

qualifying beneficiaries

497 housing properties

transferred to beneficiaries

3 properties devolved to

municipalities

3. Sustainable

Cooperative

Governance

system

• Monitor and play

oversight role in all

municipalities in order

to improve

performance and good

governance

• Co-ordinate and

provide support to

Traditional Leadership

Institutions in order to

enhance Local

Governance.

3.1 Strengthened

institutional capacity of all

municipalities by monitoring

compliance with local

government legislation

annually

Municipal IDP’s assessed

annually

Intervened in Ba-

Phalaborwa municipality to

ensure compliance with

legislation

Monitored and support

municipalities with MIG

compliance and

implementation

Supported municipalities to

improve financial

management and

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accountability

Continued implementation

of Traditional Affairs

Framework

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4. PERFORMANCE INFORMATION BY PROGRAMME

4.1 Programme 1: Administration

Purpose: To provide effective leadership, management and administrative support to core functions of the Department. This is ensured through continuous refinement of corporate policies,

skills development, efficient and effective financial management, structures and systems in

compliance with legislation and best practice and championing Batho Pele principles and service

delivery.

Sub-programmes

Administration

Strategic objectives

Financial management support and advisory services for effective accountability

Efficient business processes and back office systems

Strategic objectives, performance indicators, planned targets and actual achievements

This programme has managed to achieve most of its planned targets as summarised below: Maintaining Service Excellence: With the aim of providing excellent services as enshrined in our values, the Department was recognized for its performance on vast programmes as indicated below

Award category Award Institution

Provincial Government Departments

doing most to Accelerate Service Delivery

In Limpopo Province

Diamond Arrow Award PMR Africa

Departments that achieved highest score

on financial reporting ending March 2013

Annual Public Reporting Awards

Pyramid shaped glass

trophy

SAIGA

Innovative Enhancement of Internal

Systems of Government

1st Runner up for - GITO

Branch

Centre for Public

Service Innovation

The awards are motivating achievements for the Department to strive for excellence despite its challenges. Human Resources Management:

The Department filled a total of 69 vacant posts on the organogram

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Human resources development has facilitated training programmes aiming to empower and capacitate employees to perform their duties more effectively

Internship programme has trained a total of 110 graduates and offered learnerships to individuals who require work experience for completion of qualifications.

There is a reasonable and mutual and harmonious relationship between the employer and employees due to the consistent interaction between the parties in the form of Labour Management Forum as well as bi-lateral meetings with organised labour

Communication Services: The Department has received positive media coverage as a result of implementation of the reviewed communication plan. A new weekly online newsletter has been launched during the year. Other activities implemented include:

Successfully hosted and branded fifty six (56) strategic events for the enhancement of CoGHSTA’s image

During the Back to Basics indaba, CoGHSTA received maximum publicity through eight (8) Community, Local and national Media, and gave access to audience in excess of 4 million with almost 70% of listeners within LSM 5-8, resulting to a lasting footprint for the Department.

Continuously maintained good relations with Media by hosting Media Networking session

which brought all strategic partners, politicians and media fraternity under one roof in the

4th quarter.

Strategic objectives:

Programme 1: Administration

Strategic objectives Actual

Achievement

2013/2014

Planned Target

2014/2015

Actual

Achievement

2014/2015

Deviation

from planned

target to

Actual

Achievement

for 2014/2015

Comment on

deviations

1. Efficient business

processes and back

office systems

99% 100% 100 % None None

2. Financial management

support and advisory

services for effective

accountability

100% Process 100%

of completed

claims/vouchers

within 30 days

100% None None

28

Performance indicators


Performance

Indicator

Actual

Achievement

2013/2014

Planned Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target to

Actual

Achievement for

2014/2015

Comment on

deviations

1. Number of posts

filled

20 posts filled 30 69 posts filled 39 posts filled Moratorium on

filling of post was

lifted

2. Number of training sessions conducted as per statutory requirement WSP

1 300 training

sessions

conducted

1 200 1858 658 Additional training conducted for Traditional Affairs Branch

3. Percentage of

gender and disability

representation

54% Female 46% Male 0.61% people with disability

50% Gender

2% people with

Disability

55% Women

0,67% people with disability

45% Women 1,33% People with disability

Some of

applicants with

disabilities did

not meet the

requirements

4. Percentage of

targets met

N/A 100% 67% 33% Programme 2: Human Settlements achieved less than 50% of planned targets

5. Percentage of

resolved queries

logged through the

Departmental toll free,

Premier and

Presidential hotlines

Resolved 99%

of queries

lodged

100% 100% None None

6. Percentage of anti-

fraud and corruption

cases reported and

investigated

85% (40 of 47

cases)

100% 100% None None

7. Percentage of

undisputed invoices

paid within 30 days

100% 100% 100% None None

8. Type of audit opinion Unqualified

opinion

without

matters of

emphasis

Achieve

unqualified

opinion without

matters of

emphasis

Achieved

unqualified

opinion with

matters of

emphasis

Completeness

of human

settlements

performance

information

Improvement

in monitoring

of

performance

reporting

29


Performance

Indicator

Actual

Achievement

2013/2014

Planned Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target to

Actual

Achievement for

2014/2015

Comment on

deviations

Performance

of

remunerative

work by

officials

without

permission

Misstatement

of balances in

the AFS

corrected

during the

audit

More staff

awareness

training

Improve

monitoring of

reporting

9. Percentage of

allocated budget spent

74.7% 100% 82% 18% Significant

underspending

in Programme 2:

Human

Settlements

Reasons for all deviations

The lifting of section 100 (1) (b) in the Province has informed the uplifting on the moratorium

on filling of posts as the Provincial HRM Task Team has been discontinued.

Delay in procurement processes has impacted on implementation of programmes and

spending thereof.

Applicants did not meet requirements specifically people with disabilities

Additional training programmes implemented at Traditional Affairs Branch for the Admin

officers and Accounting clerks due to gaps identified.

Change of management staff impacted negatively on monitoring of performance reporting in

ISHS

Uncertainty in accounting treatment of expenditure out of prepaid funds let to misstatement

Staff ignorance led to remunerative work without permission (RWOPS)

30

Strategy to overcome areas of under performance

Posts have been identified to be filled by people with disability and women to ensure that

equity targets are met

More vigilance and monitoring should improve financial and non-financial reporting, as well

as (RWOPS)

Changes to planned targets

None

Sub-programme expenditure

Sub- Programme Name

2014/2015 2013/2014

Final Appropriation

Actual Expenditure


Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000

Corporate Services 275,016 272,948 2,068 259,466 255,091 4,375

Office of the MEC 1,822 1,781 41 1,735 1,667 68

Total 276,838 274,729 2,109 261,201 256,758 4,443

Linking performance with budgets

The programme has successfully implemented planned projects and the budget was fully utilised

to deliver the outputs below:

o Recruitment process

o Maintenance and operations of ICT

o Communication initiatives

o Training and development

o Internal controls measures

31

4.2 Programme 2: Human Settlements

The purpose: To ensure provision of housing development, access to adequate accommodation

in relevant areas, access to social infrastructure and economic opportunities

To achieve the above mentioned objectives, the programme is divided into three sub-

programmes:

Sub-programme Description

Housing Needs,

Research and Planning

This programme focuses on administration, policy

initiatives and analysis, housing planning as well as

research for the sector

Housing Development,

Implementation,

Planning and Targets

This programme focuses on financial, incremental,

social, rental and rural interventions and

implementation

Housing Assets

Management and

Property Management

This programme is geared for sales and transfer of

properties to households, devolution and maintenance

of housing properties

Strategic Objective: To reduce housing backlog through integrated planning and construction,

with the main aim of promoting economic opportunities through transferring of housing properties

to beneficiaries.


In the year under review, the Department had significant challenges that hindered recovery from the developments in the 2013/14 financial year. The main delay emanated from the procurement process for Human Settlements Development Grant (HSDG). The Department was part of the pilot project of the Chief Procurement Office from National Treasury. The process of procurement took approximately 7 months to complete. As a result the Department underspent the budget significantly. Subsequently, the HSDG allocation was reduced with an amount of R559 million during February/March 2015. This has impacted on the achievement of targets for the year under review as detailed below, since the procurement process had an effect on all programmes of Human Settlements.

Human settlements planning were successfully implemented, with the exception of land acquisition during the year. Other programmes including rural housing, disaster/emergency housing, and enhanced people’s housing, rental stock, transferring of housing properties and connection to basic services were affected by the prolonged procurement process during the year. This programme has achieved 21% of its planned targets.

32

Strategic objectives:

Programme 2: Integrated Sustainable Human Settlements


Achievement

2013/2014

Planned Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target

to Actual

Achievement

for 2014/2015

Comment on

deviations

3. Housing

development properly

planned by October

each year

Not achieved Formalise 4

settlements

Not achieved None None

4. Reduced housing

backlog by 80 000 by

2019

2 877 10 500 2 065 8 435 The pilot procurement project delayed the process of appointment of contractors

5. Transferred 50 000

housing properties to

beneficiaries by 2019

767 3 150 497 2 653 The pilot procurement project delayed the process of appointment of contractors


1

2


Performance

Indicator

Actual

Achievement

2013/2014

Planned Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target

to Actual

Achievement

for 2014/2015

Comment on

deviations

1. A Multi-Year

Housing Development

Plan/APP developed by

October

Multi-Year Housing Development Plan reviewed

Reviewed Multi–year Human Settlement development plan

Multi-Year

Housing

Development

Plan reviewed

None None

2. Number of informal

settlements formalised

through township

establishment

Not achieved

4 settlements formalised

0 4 The three service providers appointed in March 2015 for a period of 2 years.

1 Customised Indicators

2 Provincial Specific Indicators

33


Performance

Indicator

Actual

Achievement

2013/2014

Planned Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target

to Actual

Achievement

for 2014/2015

Comment on

deviations

3. Number of Hectares

of land acquired

0 50ha 0 50ha Identified land

was overpriced

4. Number of planned

human settlement

(housing) development

based on IDP’s,

National and Provincial

priorities approved

(Number of

development sites

identified)

N/A 10 000 10 000 None None

5. Number of

municipalities

accredited on housing

provision

Prepared one

municipality for

level two

Accreditation

Confirm one municipality for level 2 Accreditation

0 1 Municipality Municipality has not improved the audit outcomes

6. Number of capacity

building workshops

conducted

35 35 38 3 The additional

three workshops

were requested

by Presidency in

Muyexe

7. Number of

municipalities

capacitated and

supported with regard

to human settlement

(housing) development

planning

2 (Elias

Motsoaledi &

Tubatse

supported)

2 Municipality

supported

through NUSP

2 None None

8. Number of Acts

passed and/or policy

guidelines approved

Draft provincial

housing

allocation policy

available

Informal

settlement Bill still

with the

Provincial

Legislature for

gazetting

Pass1 Policy/

Act

0 1 Draft policy on

Provincial

Housing

Allocation

available

34


Performance

Indicator

Actual

Achievement

2013/2014

Planned Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target

to Actual

Achievement

for 2014/2015

Comment on

deviations

9. Number of research

papers completed

None 1 0 1 Research paper

on Housing

Cooperatives still

at Draft stage

10. Number of new

housing units

completed in the

Province across all

housing programmes

being utilized by the

Province

2 877 10 500 2 065 8 435 The pilot procurement project delayed the process of appointment of contractors

11. Number of Housing

stock/RDP rectified

95

700 60 640 The pilot procurement project delayed the process of appointment of contractors

12. Number of

households connected

to basic services as

part of the informal

Settlement Upgrading

Programme

N/A 3 000 0 3 000 The pilot procurement project delayed the process of appointment of contractors

13. Number of rental

units built (CRU) and

(SH)

N/A 250 0 250 The pilot procurement project delayed the process of appointment of contractors

14. Number of new

sites connected to

basic water and

sanitation services as

part of the Integrated

Residential

Development

Programme

N/A 500 0 500 Polokwane Ext.

121 and 86 –

service provider

was delayed due

to outstanding

power of attorney

from DPW.

15. Number of

Enhanced Peoples

Housing Process units

N/A 150 0 150 The pilot procurement project delayed the process of appointment of

35


Performance

Indicator

Actual

Achievement

2013/2014

Planned Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target

to Actual

Achievement

for 2014/2015

Comment on

deviations

completed contractors

16. Number of units

transferred through the

Enhanced Extended

Discount Benefit

Scheme

135 150 188 38 Carryover

projects from

2013/14


units sold to

beneficiaries

N/A N/A N/A N/A N/A


units transferred

N/A N/A N/A N/A N/A

19. Number of units

registered and

endorsed


20. Number of debtors

reduced per financial

year

N/A N/A N/A N/A N/A


units devolved to

municipalities in terms

of section 15 of the

housing Act, 97

None 3 3 None None

22. Number of projects

approved

80 80 32 48 Outcome of SCM

yielded fewer

contractors than

expected.

23. Number of job

opportunities created


24. Number of

beneficiaries/ subsidies

approved on HSS

N/A 10 500 10 171 329 Some applicants

for subsidies did

not qualify in

identified areas

36


Performance

Indicator

Actual

Achievement

2013/2014

Planned Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target

to Actual

Achievement

for 2014/2015

Comment on

deviations

25. Percentage of

disputes/cases

resolved

89% (189 of

213)

100% 91% (273 of

301)

9% Non-availability of

parties

26. Number of Reports

submitted (MEC

advisory panel)

1 1 0 1 New advisory

panel was

constituted in the

4th quarter.

27. Number of Finance-

Linked Individual

Subsidy Programme

(FLISP) units

completed

N/A 300 60 240 Applicants failing National Credit Act requirements.

Note: Performance Indicator 11 has been funded under blocked projects


The National Treasury pilot on procurement for Human Settlements delayed appointment of

service providers to implement Housing projects for the year

Beneficiaries for rural housing programme saturated in Lephalale and others failing searches

In accordance with FLISP criteria, applicants did not fulfil all requirements

Affected parties to disputes not adhering to the procedure of case management therefore delaying

conclusion.


Extension of contract period granted for contractors appointed in 2014/15 financial year.

37


2014/2015 2013/2014

Sub- Programme Name Final Appropriation

Actual Expenditure


Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000

Housing needs, research

and planning

16,875

14,898

1,977

22,432

22,384

48

Housing development ,

implementation ,

planning and targets

874,201

629 462

244 739

716,363

338,014

378,349

Housing asset

management and

property management

32,753

32,572

181

37,900

34,297

3,603

Total 923,829 676 932 246 897 776,695 394,695 382,000


Significant underspending in programme 2 is from transfers and subsidies, which funds the

implementation of human settlements development. Expenditure and performance recorded is

lower than planned. This is attributed mainly to delayed appointment of contractors.

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38

4.3 Programme 3: Cooperative Governance

The purpose: The programme aims at capacitating municipalities to implement their legal

mandates through the following sub-programme:

List of the sub-programmes


Local Government

Support

To support municipalities with administration

requirements and compliance, financial management

and accountability, public participation, capacity

development as well as perform monitoring and

evaluation

Development Planning To support and monitor municipalities on spatial

planning, disaster management, land use

management, municipalities infrastructure delivery,

local economic development and IDP coordination

Strategic Objective: The objective of this programme focuses on capacity development in municipalities. Municipalities require constant monitoring and evaluation with the purpose of implementation on corrective actions to ensure service delivery. Governance in municipalities has improved in the past five years. This is evident in the:

Professionalisation of the recruitment of senior managers in municipalities

Development and implementation of valuation rolls in all 25 local municipalities

Compliance with the Municipal Systems Act by installing controls to ensure proper and effective governance systems

Development and implementation of credible IDP’s

Strategic oversight on financial management programme


The Sub-Department has monitored the performance of municipalities in compliance with relevant legislation. Concurrently, provided support to municipalities to ensure continued service delivery. This is done to ensure that municipalities are functional and able to perform their constitutional mandate of providing services to citizens timeously. Financial management in municipalities The improvement of financial management in municipalities has been a cornerstone of our intervention for immediate impact and preservation of long term goals to enhance municipal efficiency and viability. Through targeted and focused intervention there has been a remarkable progress on the audit outcomes of 2013/14 as depicted on the table below:

Municipal Audit Outcomes

Audit opinion 2012/13 2013/14

Unqualified 0 12

Qualified 18 11

39

Audit opinion 2012/13 2013/14

Adverse 3 1

Disclaimers 9 6

It is imperative that systems have to be established and maintained to ensure effective, efficient and economic use of resources and to prevent fruitless and wasteful expenditure by this important sphere of government.

The system of local government is maturing in the Province. The Provincial Executive Council (EXCO) has evoked section 139(4)(b) in Ba-Phalaborwa in order to assist in compliance with Municipal Property Rates Act and to ensure that maximum revenue is collected for the interest of both government and community. Implementation of the Operation Clean Audit Plan

Twenty seven (27) municipalities have developed and submitted the audit remedial action plans to address issues raised by the Auditor General in respect of the 2013/14 municipal audit. The following three (3) municipalities have not yet submitted the audit remedial action plans in respect of the 2013/14 municipal audit namely: Aganang, Mogalakwena, and Ba-Phalaborwa.

The reasons for non-compliance are that Ba-Phalaborwa municipality is disputing the audit outcomes, and Aganang municipality submitted the Annual Financial Statements late and received the audit opinion late in February 2015. Several engagements were done at Mogalakwena municipality to be assisted to develop remedial plans. However, to date, the municipality has neither provided an action plan nor availed themselves to be assisted by the Department. The Department has assessed twenty one (21) audit remedial action plans and provided written feedback.

SPLUMA implementation

The Spatial Planning and Land Use Management Act, (SPLUMA) was enacted during 2013. The Province has finalised Regulations to the Act implementation is 1 July 2015. The Action plan with key tasks to be undertaken by the Municipalities has been developed and coupled with the generic Modalities on Agreements for the Joint District Municipal Tribunal format. The Department of Rural Development and Land Reform has also appointed a Service Provider to assist municipalities in the development of modalities regarding, by-laws, delegations, tariffs and the drafting of the Memorandum of Understanding in preparation for the implementation of the Act.

Strategic objectives

Programme 3 : Co-operative Governance


Achievement

2013/2014

Planned

Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target

to Actual

Achievement

for 2014/2015

Comment on

deviations

6. Improved support

and oversight in all

municipalities by

2015

4 Reports on

implementation

of municipal

capacity

development

plan

4 None None

40


3

4


Performance Indicator Actual Achievement

2013/2014

Planned Target

2014/2015

Actual Achievement

2014/2015

Deviation from planned target

to Actual Achievement

2014/2015

Comment on deviations

1. Number of municipal performance reports compiled as per the requirements of Section 47 of the MSA

N/A 1 1 None None

2. Number of municipalities supported to improve audit outcomes

5 30 30 None None

3. Number of

municipalities with

functional performance

audit committees

30 30 30 None None

4. Number of

municipalities with

functional Performance

Management System

(PMS)

N/A 30 30 None None

5. Number of

municipalities supported

with fraud and anti-

corruption strategy

N/A 30 8 22 Capacity challenges

6. Number of reports on

the filing of municipal

managers and section 56

4 4 4 None None

7. Number of

municipalities with HR

policies norms and

standards

30 30 30 None None

8. Number of

municipalities supported to

fill top six positions filled by

30 30 30 None None

3 Customised Indicators

4 Provincial Specific Indicators

41



2013/2014

Planned Target

2014/2015

Actual Achievement

2014/2015



2014/2015


competent staff

9. Number of

municipalities capacitated

to implement individual

PMS with respect to sec

56 & 57 managers

30 30 30 None None

10. Number of

municipalities supported in

MPRA implementation

24 25

25 None None

11. Number of

municipalities with MPAC

30 30 30 None None


government debts

reduction

4 4 4 None None


the implementation of

clean audit plan

4 4 4 None None

14. Number of


establish audit committees

30 30 30 None None


implementation of

Municipal capacity

development plan

4 4 4 None None

16. Number of


spend MIG

29 29 29 None None

17. Number of report

produced on households

with access to basic

services i.e. (water,

sanitation, electricity,

refuse removal) from

municipalities

1 1 1 None None

42



2013/2014

Planned Target

2014/2015

Actual Achievement

2014/2015



2014/2015


18. Number of

Municipalities with

functional ward

committees

25 25 23 2 Non-submission of

reports by

Mogalakwena and

Greater Tubatse

19. Number of

municipalities with

functional IGR structures

5 5 5 None None

20. Number of Izimbizo

held by MEC, Mayors &

Councillors

4 4 4 None None

21. Number of awareness

campaign conducted for

elections

4 2 2 None None

22. Number of

municipalities where full

CDW programmes are

implemented

25 25 25 None None

23. Number of district

municipalities with disaster

management centres

supported

5 5 5 None None

24. Number of meetings of

the Intergovernmental

Disaster Management

forum

4 4 4 None None

25. Number of provincial

fire preparedness reports

compiled

1 1 1 None None

26. Number of municipalities supported to implement SDFs in term of guidelines

30 30 30 None None

27. Number of

municipalities

implementing LUMS

12 12 12 None None

43



2013/2014

Planned Target

2014/2015

Actual Achievement

2014/2015



2014/2015



the Statutory Board

(Townships Board)

4 5 5 None None

29. Number of

municipalities supported

with spatial and land use

management

N/A 30 30 None None

30. Number of demarcated

sites available for Human

Settlements

5450 5000 5130 130 Additional sites

emanates from

public parcels and

other communities

that were not

engaged during the

planning phase

31. Number of municipalities supported with the development of legally compliant IDP

30 30 30 None None

32. Number of municipalities with LED strategies assessed

N/A 30 30 None None

33. Number of District LED fora established

5 5 5 None None

34. Number of work opportunities created through the community work programme

23 969 17 000 21 496 4496 CoGTA provided

more allocation to

expand to additional

4 municipalities


The Sub-Department has achieved 97% of its targets and the reasons are as follows:

Additional work opportunities: Greater Tzaneen, Greater Tubatse and Greater Giyani

increased by a combined total of 2496 participants. The program expanded by 2000

participants to 4 municipalities being Musina, Greater Letaba, Elias Motsoaledi and

Polokwane municipality. Each municipality has 500 participants

Mogalakwena and Greater Tubatse municipalities are not complying with the IGR Act

44


Accounting Officers of municipalities have been engaged


2014/2015 2013/2014

Sub- Programme Name

Final Appropriation

Actual Expenditure


Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000

Local Governance 174,796 174,443 354 173,235 173,011 224

Development

Planning 58,009 57,870 138 66,335 60,870 5,465

Total

232,805 232,313 492 239,571 233,881 5,690


The programme has achieved 97% of its planned targets during the year in accordance

with allocated budget.

4.4 Programme 4: Traditional Affairs

The purpose: Aims to support the institution of Traditional Leadership to operate within the

context of co-operative governance

List of the sub-programmes


Traditional Institutional

Admin

To support Traditional Institutions with administration,

resource administration, land administration and

facilitation of rural development

Administration of

Houses of Traditional

Leaders

To support Houses of Traditional leadership with

administration of its committees and Local Houses

Strategic Objective: Ensure that provisions of Traditional Leadership legislation and policies are

implemented


The Provincial Commission on Traditional Leadership, Disputes and Claims has

received 507 applications and 175 cases have been completed to date.

The President of the Republic has on 09 February 2014 approved salary increases

for all categories of Traditional Leaders. This has been done per Proclamation No.9

of 2014, published in Government Gazette No. 37352 dated 18 February 2014. The

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45

Department has paid salary adjustments for 2014/15 and arrears on Persal System

for active Traditional Leaders. The payment was made during June 2014.

In line with Framework for the Provision of Enabling Resources to Qualifying

Traditional Leaders and members of Houses of Traditional Leaders the Department

is still mobilising resources to implement some of the tools of trade such as: motor

vehicles, provisions for Kings and construction of traditional councils' offices.

Furthermore, 29 previously recognised Traditional Leaders were paid allowances

including arrears

Strategic objective

Programme 4: Traditional Institutional Development


Achievement

2012/2013

Planned

Target

2013/2014

Actual

Achievement

2013/2014

Deviation from

planned target to

Actual

Achievement for

2013/2014

Comment on

deviations

7. Supported all

established

institutions of

Traditional Leaders

by 2019

12 12 12 None None


Programme 4: Traditional Institutional Development

Performance

Indicator

Actual

Achievement

2013/2014

Planned

Target

2014/2015

Actual

Achievement

2014/2015

Deviation from

planned target

to Actual

Achievement

for 2014/2015

Comment on

deviations

1. Number of sittings by the Provincial House of Traditional Leaders

2 2 2 None None

2. Number of sittings by the local house of traditional leaders

10 10 10 None None

3. Number of Traditional Councils supported

184 185 185 None None

46


2014/2015 2013/2014

Sub- Programme Name

Final Appropriation

Actual Expenditure


Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000

Traditional Institutional Administration

335,056

334,654

402

304,530

294,614

9,916

Administration of Houses of Traditional Leaders

6,988

6,844

144

6,925

6,692

233

Total 342,044 341,498 545 311,455 301,306 10,149


The funds in this programme have been utilised towards compensation of Traditional Leaders and supporting of the functioning of Traditional Leadership institutions.

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5. TRANSFER PAYMENTS

5.1. Transfer payments to public entities

No transfer payments were made to any public entity

5.2. Transfer payments to all organisations other than public entities

No transfer payments were made to any organisations

6. CONDITIONAL GRANTS

6.1. Conditional grants and earmarked funds paid

Not Applicable to the Department

6.2. Conditional grants and earmarked funds received

The table below details the conditional grants and earmarked funds received for the period 1 April

2014 to 31 March 2015.

Conditional Grant Human Settlement Development Grant:

Department who transferred the grant

Human Settlements

Purpose of the grant To provide funding for the creation of

Sustainable human settlements.

Expected outputs of the grant

Accelerated delivery of housing

opportunities

Efficient utilisation of land for Human

Settlements development

Improved property market

Rectification

Actual outputs achieved 2065 housing units completed

497 properties transferred to beneficiaries

Amount per amended DORA (R’000)

R 825,603

Amount received (R’000) R 825,603

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Reasons if amount as per DORA was not received

None

Amount spent by the Department (R’000)

R583,021

Reasons for the funds unspent by the entity

The pilot procurement project delayed the process of appointment of contractors

Reasons for deviations on performance

The pilot procurement project delayed the process of appointment of contractors

Measures taken to improve performance

Extension of contract period granted for contractors appointed in 2014/15 financial year.

Monitoring mechanism by the receiving Department

Inspections carried out during construction

process

Enhanced project management through

decentralisation in local municipal areas

Technical support through deployment of

Cuban Technical Advisors

7. DONOR FUNDS

7.1. Donor Funds Received

No donor funds were received during the year under review

8. CAPITAL INVESTMENT

8.1. Capital investment, maintenance and asset management plan

Infrastructure

projects

2014/2015 2013/2014

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

New and replacement assets

825,603

583 021 242 582 682,110 303,449 378,661

Total 825,603 583 021 242 582 682,110

303,449 378,661

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PART C: GOVERNANCE

50

1. RISK MANAGEMENT

1.2 Risk management policy and strategy.

The Department has a Risk Management Strategy and policy and they are reviewed

annually and approved by the Accounting officer.

1.2 Regular risk assessments

Risk Assessment is conducted on an annual basis to identify risks that have a

potential to adversely affect achievements of Departmental Objectives and overall

efficiency and effectiveness of business processes.

1.3 Risk Management Committee

The Risk Management Committee exists in terms of the Risk Committee Charter

reviewed on an annual basis. The Risk Committee reviews the Departments system

of Risk Management and oversees implementation of recommendations relating to

risk management

1.4 Audit Committee

The Audit Committee considers the Department’s risk management report on a quarterly

basis and advises the Department on improvements of risk management.

Progress in the management of risks, whether this has transmitted into improvements in

the Department’s performance, and if not, what it plans on doing to address this problem

In the year under review, the Department mitigated 40% of the prioritized risks. Risks for

which target could not be achieved continue to be significant to the achievement of

Departmental objectives and as a result have been targeted during the 2015/16 financial

year.

For the financial year under review, a risk assessment was conducted and the following

are prioritized risks:

Risk Progress

Inability to meet equity targets Two people with disability were appointed

Theft and insecurity CCTV to be procured during 2015/16 FY.

Adverse reputation of the Department Assessment report on all social media platforms made, of which

outcome was presented to management

Loss of records at traditional councils Monitored compliance with the record management policy and

the file plan at Sekhukhune District Municipality

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Risk Progress

Poor financial management in

municipalities and ineffective

implementation of Audit action plans

Assessments were conducted through Back to Basics approach

Limitations to acquire well located land Land identified in Tzaneen and Burgersfort

Inadequate bulk infrastructure Business plan finalized.

Capacity constraints in project

management and engineering skills

Continued monitoring of projects and joint inspection between

stakeholders conducted

Inaccessibility of credit to

beneficiaries(gap market)

FLISP project launched (Bendor Ext. 100)

Fraud and corruption Received 56 cases and 48 have been finalized.

Prolonged operational stoppages Service provider to develop BCP appointed on the

12/02/2015.BCP will be finalized December 2015

2. FRAUD AND CORRUPTION

Fraud prevention initiatives

Fraud Prevention Plan developed and has been implemented through developing of Anti-

Fraud &Corruption Strategy, awareness workshops and conducting investigation on

cases reported.

Mechanisms in place to report fraud and corruption

Procedure manual developed and all cases received are sanctioned by Head of Department before official investigation is conducted. Whistle blowing policy in place to guide officials on the process and management.

Procedure on handling reported cases

Cases are reported to the Head of Department office and upon findings emanating from the investigation, recommendation are forwarded to Head of Department for his/her consideration. Those which requires further referral to other units and or agencies, such referrals are done for their further handling

3. MINIMISING CONFLICT OF INTEREST

All employees are required to apply to the Executive Authority for permission to conduct

remunerative work outside the public service in terms of Section 30 of the Public Service

act. The Department has entered into an agreement with Companies and Intellectual

Property Commission (CIPC) in terms of which access has been provided for the

purposes of viewing on the CIPC database. Before an award is made to the prospective

bidder a search is performed to determine if either of the directors/members is a

governmental employee.

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Where a conflict of interest is identified, disciplinary proceedings are instituted against the

affected employee.

4. CODE OF CONDUCT

Ethical practices in the Department are in line with the Code of Conduct for the Public

Service. There is a reasonable mutual and harmonious relationship between employer

and employee in the Department due to consistent interaction between the parties in the

form of Labour Management Forum as well as bilateral meetings with organised labour.

The Department regularly conducts workshops, briefing sessions, inductions and training

sessions in relation to both PSCBC Resolution 1 of 2003 and PSCBC Resolution 14 of

2002. Disciplinary Code and Procedures Policy has been approved by the Executive

Authority and is in force.

In case of breach of Code of Conduct, disciplinary proceedings will be instituted against

the affected employee.

5. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

The Department has a functioning Employee Wellness Unit which addresses all the

Health Safety and Environmental issues.

The Department has a Committee that deals with Health Safety and Environment.

Audits are done on continuous basis to address issues that might pose risk to Healt