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Quarter 3 Report 2012/13

DEPARTMENT OF PUBLIC WORKS PORTFOLIO COMMITTEE ON PUBLIC WEORKS PARLIAMENT OF SOUTH AFRICA 13 FEBRUARY 2013 CAPE TOWN. Quarter 3 Report 2012/13. Purpose. Purpose of the Presentation by the Department of Public Works

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Quarter 3 Report 2012/13

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  1. DEPARTMENT OF PUBLIC WORKSPORTFOLIO COMMITTEE ON PUBLIC WEORKSPARLIAMENT OF SOUTH AFRICA13 FEBRUARY 2013CAPE TOWN Quarter 3 Report 2012/13

  2. Purpose • Purpose of the Presentation by the Department of Public Works • To reflect on the Quarter 3 information and financial performance of the Department of Public Works in the financial year 2012/13 • Objective of the Portfolio Committee on Public Works • Briefing by the Department of Public Works on the third quarter performance of the department for 2012/13.

  3. Turnaround Interventions and Progress

  4. General Overview of Progress • The third quarter’s progress may be attributed to Turnaround’s strategy. Turnaround has 18 projects that are knotted into the programmes of the Department. • Progress on some projects • Immovable Asset Register project • focused was on the confirmation of properties devolved to provinces and the confirmation of properties deemed to belong to National DPW • Confirmation process is about 80% complete with teams currently following up certain anomalies to ensure that the correct properties are reflected in the asset registers of National DPW, Provincial DPWs and the DRDLR • Issues pertaining to the devolution of the rates budget and the status of asset registers in the provinces were discussed in the December MinMec and Special MinMec in January 2013 • There is also a process of defining an approach to value IAR using fair value and in this case, applications were made to Office of the Accountant-General • The Department obtained state land audit from the Chief Surveyor General for input to the IAR project • The Department obtained the User Asset Management Plans prepared by the CSIR from Defence

  5. Overview cont.…. • Lease management • A team led by the service provider/Programme Manager was deployed to all 11 regional offices across the country to assist with the backlog. • The DPW is in the process of establishing a Lease Advisory Committee that will advise the Director-General on the signing and approval of the lease documents relating to new leases, leases in the process of renewal/ extension, as well as expired and month-to-month leases • Supply chain management • A draft on the revision of the Supplier Register Directive and application form has been prepared. • A draft on SCM Policy that incorporates all applicable circulars and practice notes issues by the National Treasury and CIDB was developed • In terms of enhancing skills, regional SCM coordinators and officials were trained.

  6. Overview cont.…. • Building of skills in DPW – capacity and capability / reduction of vacancies • There is a focus on building the eroded capacity and technical skills in the Department. • The turnaround project on building skills is currently working with the Council for Built Environment (CBE) on qualifications processes and also assists in developing professional and technical skills. • About 220 professionals have been identified to assist in this regard (100 has been approved) • Re-opening of Workshops • Workshops serve a large part of the business of the Department in terms of maintenance. • In recognition of the important role played by this function, the project is underway to re-open workshops in the regions – priority at phase 1 will be Pretoria and Cape Town

  7. Programme Analysis

  8. Internal Audit and Investigations Services • Highlights • Performance on internal audits improved in Q3 compared to Q2 due to assistance received from National Treasury through secondment of a Director to oversee Head Office Internal Audits sub directorate. • performance on investigations declined as the budget was depleted • New ARMC members have been appointed and already inducted. • Independent review of management actions plans provides assurance to management on effectiveness of actions implemented and improvements • The sub-programme co-leads the Turnaround Priority Project 5 – Anti Fraud and Corruption Awareness Campaign.

  9. HRM • Highlights • Additional capacity in the Department is taking various forms

  10. HRM • Grievances • 76 overall grievances were finalized this quarter. • Misconduct • 17 overall misconduct cases were finalized this quarter. • Disputes • 03 overall disputes were finalized this quarter).

  11. Intergovernmental Relations • Meeting reflect the concurrent mandate – • MinMec and HOD forums • Meetings reflect governance structures • Effective coordination and follow-ups on resolutions is important • Improvement in the quality of reporting on resolutions made in all the minister’s meetings with the entities

  12. Programme 2: Immovable Asset Investment Management

  13. Asset Investment Analysis • Highlights • Deeds review completed • Data base received from Dept of Defence as well as from the Chief Surveyor General (CSG) to enhance DPW’s Asset register • Desk top review completed and DPW’s Verification process under way

  14. Inner City Regeneration • Highlights • Feasibility study in respect of DPW Workshops site in Minaar Street completed. • Site to be used for DPW needs instead of co-using the site for taxi purposes • CoT is busy compiling a land availability document • Infrastructure Projects registered on WCS • Motivated for and obtained funding for Infrastructure Projects

  15. Programme 3: Expanded Public Works Programme

  16. Expanded Public Works Programme

  17. Programme 4: Construction and Property Policy Regulation

  18. Construction and Property Policy Regulation

  19. Quarter 3 Financial Performance

  20. Q3 Financial Performance Contextualised • Leadership stability • Internal re-alignment at senior level (new posts DDG- Risk Management, DDG – SCM) • Positive effects of Turnaround intervention not yet realised (significant positive impact • in 2013/14 & beyond) • Keys Stabilisation projects rolled out • Compilation of the Immovable Assets Register • Review of Leases • Clean Audit Project • Enhancement of Department’s Technical Capability fully underway with appointment • of technical professionals

  21. Financial Performance per Programme Assuming a linear benchmark of 75%

  22. Notes: Expenditure at Programme Level • Expenditure for all Programmes with the exception of Programme 5 is in line with the • guideline. • High expenditure in Programme 3 is due to payments for transfers and subsidies for • incentives which are in line with the payment schedule. • Overspending in Programme 5 is due to payments relating to State Functions. A • request for the adjustment of funds has been made to National Treasury for the funds • to be allocated to offset the overspending.

  23. Expenditure per Economic Classification Assuming a linear benchmark of 75%

  24. Notes to the Expenditure • The overall actual expenditure as at the end of quarter 3 is R5.6 billion, 71% of the total • allocation, 4% below the linear benchmark of 75%. • Compensation of employees expenditure to-date at R1.036 billion is 78 % , 3% above the • linear benchmark – • Goods and Services expenditure for end of December is R430 million, equivalent to 54% of • the total allocation. • Expenditure for Office Accommodation is R137 million equivalent to 29% of the total • allocation of R469M. • Transfers and subsidies expenditure at R 3.5 billion, 85% of the allocation of R4.2 billion, 10% • above the linear benchmark of 75 %

  25. Notes to the Expenditure • As alluded to before, this however is in line with the payment schedule • Infrastructure expenditure actual expenditure for Q3is R374 million against an allocation • of R999 million, represents 38% of allocation. • Expenditure is far below the Linear Benchmark 75% and under spending is therefore projected. • After providing for all commitments, under expenditure at 31 March 2013 is projected at R162 million. • Machinery and equipment expenditure is R25 million which represents a mere 23% of the total allocation of R108 million.

  26. PMTE – Financial Performance Report for Q3

  27. PMTE - Financial Performance

  28. PMTE - Financial Performance

  29. Accommodation Charges – State Owned and Private Leases

  30. Accommodation Charges

  31. Accommodation Charges – State Owned • 73% of the amounts invoiced have already been received. (This represents 60% of the amount to be invoiced for the year). • 46% of the outstanding debt relates to accounts outstanding for more than 120 days • 97% of outstanding amounts in total relates to current year • Clients are resistant to pay as we are still not in a position to compile itemized billing • Engaging with the OAG for an approval to continue invoicing on the basis of the devolution until the IAR programme is complete.

  32. Accommodation Charges – Private Leases • 20% of the money received against this item relates to prior years. • 64% of amounts invoiced have been received. • 73% of the outstanding amounts for the current financial year are less than 90 day.s • R33 million (1.8%) has not been claimed as it relates to disputed properties where the • Client either disputed occupation or the rental being paid.

  33. THANK YOU National Department of Public Works (NDPW) Head Office: Public WorksCGO BuildingCnr Bosman and MadibaPretoria CentralPrivate BagX65Pretoria0001 Website: http://www.publicworks.gov.za

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