DEPARTMENTAL QUARTERLY PERFORMANCE REPORTJANUARY- MARCH 2013

PORTFOLIO COMMITTEE FOR HUMAN SETTLEMENTS

MR T ZULUDIRECTOR GENERAL – HUMAN SETTLEMENTS

1

CONTENTS

• Departmental Performance for January – March 2013 Per Programme

Departmental Quarterly Performance Per Programme (4th Quarter 2012-13) Departmental Quarterly Performance Per Programme (4th Quarter January – March 2013) Overall Departmental Fourth Quarter Performance 2013

• HS Sector Performance (January to March 2013)

Communication and Outreach key Delivery Agreement (Outcome 8) Job Creation Accreditation of Municipalities Sanitation Progress Entities performance

• Departmental Financial Performance (4th Quarter 2012-13)

• Reasons for under spending / Challenges and Strategic Mitigation Measures

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DEPARTMENTAL PERFORMANCE FOR

JANUARY – MARCH 2013PER PROGRAMME

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DEPARTMENTAL QUARTERLY PERFORMANCE PER PROGRAMME

(PERCENTAGE ACHIEVEMENT)

4

ANNUAL PERFORMANCE PLAN (APP), JANUARY – MARCH 2013 PERFORMANCE STATUS

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Programme / Sub-programme Total Approved Targets

Targets AchievedTotal and (%)

Targets Not AchievedTotal and (%)

Office of Director – General (DG’s Office) 7 4 (57) 3 (43)

Corporate Services (CS) 17 16 (94) 1 (6)

Human Settlements Delivery Frameworks (HSDF) 17 5 (29) 12 (71)

Human Settlements Strategy and Planning (HSSP) 14 7 (50) 7 (50)

Programme and Project Management Unit (PPMU / PMU)

16 7 (44) 9 (56)

Office of Chief Financial Officer (CFO) 10 9 (90) 1 (10)

Office of Chief Operations Officer (COO) 18 11 (61) 7 (39)

National Department of Human Settlements (NDHS)

99 59 (60) 40 (40)

DEPARTMENTAL FOURTH QUARTER PERFORMANCE

PER PROGRAMME

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OVERALL DEPARTMENTAL PERFORMANCE

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HUMAN SETTLEMENTS SECTOR PERFORMANCE

JANUARY TO MARCH 2013

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COMMUNICATION AND OUTREACH

9

• Kenyan delegation visit - 1 March 2013

• Benguela Delegation Visit To Cornubia – 13 February 2013

• Guided visit to projects; Fleurhof and Jabulani hostel

• Estate Agency Affairs Board member announcement 7 March 2013

• Launch of the Chair for Education in Human Settlements19 March 2013

• Preparation for Project launch - Walmer Link, PE

• Preparation for Danida Energy Efficiency Pilot Project – N2 Gateway

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OUTCOME 8 – UPGRADING OF INFORMAL SETTLEMENTS PROGRESS

Performance to date:

• Actual number of households provided with upgraded services as on 31 March 2013: 177 598 households.

• Represents 44,4% of 2014 target.

• Including Urban Settlements Development Grant: Increased to 230 111 households.

• Represents 57,5%% of 2014 target.

• Over same period Provinces delivered 182 065 formal housing units to households in informal settlements.

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OUTCOME 8: UPGRADING OF INFORMAL SETTLEMENTS PROGRESS Cont.

Prove 2014Target

Total delivery (1 April 2010

to 31 March 2013)

Delivery 2012/13

Delivery 4th Quarter

only

% of target2014

EC 59 440 22 600 9 254 9 107 38.1

FS 26 400 18 196 7 885 1 876 68.9

GP 96 760 44 362 7 733 3 741 45.8

KZN 76 200 20 266 6 966 1 615 26.6

LP 31 200 20 624 5 803 4 026 66.1

MP 26 480 12 340 4 180 1 779 46.6

NC 9 320 5 515 1 989 1 989 59.2

NW 28 840 13 829 872 337 48.0

WC 45 360 19 866 8 940 3 465 43.8

TOTAL 400 000 177 598 53 622 27 935 44.4

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OUTCOME 8: UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)

Province 2014TARGET

Total delivery (since inception to 31 March

2013)INCLUDING USDG

%of target2014

EC 59 440 44 231 74.5

FS 26 400 18 196 68.9

GP 96 760 60 552 62.6

KZN 78 200 29 516 38.7

LP 31 200 20 624 66.1

MP 26 480 12 340 46.6

NC 9 320 5 515 59.2

NW 28 840 13 829 48.0

WC 45 360 25 308 55.8

TOTAL 400 000 230 111 56.7

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OUTCOME 8: PROVISION OF RENTAL ACCOMMODATION

• Up to 31 March 2013 a total number of 35 641 affordable rental accommodation was provided.

• Represents assistance from both the HSDG and USDG.

• Represents 44, 6% of the 2014 target.

• If the private sector contribution is added, a total number of 43 884 rental units was provided representing 54, 9% of the 2014 target.

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OUTCOME 8: PROVISION OF RENTAL ACCOMMODATION Cont.

Prov Total delivery

Delivery 2012/13

% of 2014target

TOTAL delivery(including

USDG)

% of 2014target

(including USDG)

EC 2 521 1 475 21.2 2 995 25.2

FS 2 056 1 039 38.9 3 293 62.4

GP 10 368 3 816 53.9 10 547 54.8

KZN 7 708 4 378 50.6 8 150 53.5

LP 136 0 2.2 136 2.2

MP 739 244 14.0 675 14.0

NC 290 290 15.6 5 15.6

NW 2 868 2 480 49.7 2 868 49.7

WC 6 523 2 122 71.9 6 790 71.9

Total 33 209 15 844 41.6 35 641 44.6

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OUTCOME 8: ACQUISITION OF LAND

• In terms of Outcome 8, the Housing Development Agency (HDA), identified 69 163 ha of state land for possible release, 47 604 ha have been assessed for suitability and 7 477,5 ha has been released (FS, GP, KZN, LP & NW).

• Provincial Human Settlements Departments also acquired land for human settlement development.

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OUTCOME 8: IMPROVED PROPERTY MARKET

• Mortgage Default Insurance Scheme

– Concurrence from the National Treasury for MDI is still outstanding

• Finance Linked Individual Subsidy:

– Revised FLISP Policy implemented on 1 April 2012;– 12 projects across the country are at different stages of implementation;– The process of accreditation of projects is on-going;– Implementation of FLISP is extended to the open market to fast track

programme delivery in provinces;– On 31 March 2013 the budget commitments for FLISP applications

amounted to R42 million

• Long term fixed interest rate instrument

– Planned for launching in 2014.

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OUTCOME 8: IMPROVED PROPERTY MARKET Cont.

• Stringent qualification criteria applied by banks is not promoting growth in the affordable housing;

• The NDHS to engage with the Banks and encourage them to be transparent with the reasons for declining home loans;

• A process of engagement with public, private, social, community and labour stakeholders are still to be arranged;

• Department in conjunction with DPSA is developing a policy and programme for the provision of access to finance by public servants.

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OUTCOME 8: DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED

Institution Total delivery Delivery 2012/13 % OF 2014 TARGET

NHFC (Mortgage Loans) 1 791 12 92.8

NHFC (Incremental Loans) 12 968 5 333 31.9

NHFC (Wholesale funding) 21 964 7 058 55.8

NHFC (Leverage) 5 917 1 689 46.1

RHLF 125 141 44 809 68.8

NURCHA 8 110 1 813 70.8

TOTAL 175 891 60 714 34.5

NATIONAL UPGRADING SUPPORT PROGRAMME (NUSP) PROGRESS

• NUSP Core Team in place• Budget operational from April 2012• Informal Settlements Upgrading Policy and

implementation guidelines accessed by team of international experts

• Knowledge Services: Resource Kit developed and Website developed and active

• Capacity Building: Training course outline completed and content production to follow

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NUSP PROGRESS Cont.

• Technical Support to produce municipal upgrading strategies and settlement level plans in 49 Municipalities:

- 11 municipalities involving 224 informal settlements actively being planned

- Contracts awaiting finalisation: 10 municipalities involving 65 settlements

- TORs to be re-advertised: 2 municipalities involving 158 settlements

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NUSP PROGRESS Cont.

• TORs approved by municipalities and to be advertised in tender bulletin: 4 municipalities involving 74 settlements

• TORs awaiting approval: 2 municipalities involving 37 settlements

• Proposals awaiting approval by municipal councils: 4 municipalities

• Discussions with 16 municipalities to confirm technical support underway.

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JOB CREATION

The delivery of 17 198 serviced stands and 39 942 completed houses created an estimated 21 204 job opportunities during the fourth quarter of 2012/13 financial year.

National TOTAL EMPLOYMENT CREATED

Direct Indirect Induced Total

Serviced Stand 2 284 230 1 065 3 579

Top Structure 9 033 1 506 7 086 17 625

Total 11 317 1 736 8 151 21 204

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ACCREDITATION OF MUNICIPALITIES

• No assessments have been done this quarter as NDHS is in the process of appointing independent auditors.

• FFC review has been received and is favourable & paves way for the formal assignment process to proceed.

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

• Framework for the transfer of assets, liabilities, staff, and projects has been established to assist the Provinces and Metros.

• Assignment Task Teams constituted of provincial local government departments, Provincial Treasuries, Provincial SALGAs, Human Settlements departments and Metros are being established.

• The revised accreditation framework which was approved by MinMec in November 2012 draws a distinction between accreditation and assignment, with the latter advocating for the permanent transfer of the full housing functions to municipalities and uses accreditation as a capacitation stage towards assignment.

ACCREDITATION OF MUNICIPALITIES Cont.

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SANITATION: TRAINING Funding proposals on implementation of training programmes

• A funding proposal for funding of three (3) skills development initiatives in response to CETA’s call for application to discretionary funding of sector skills development initiatives in line with their 2012/13 financial year targets.

The different types of training for which funding is applied are: training of artisans through apprenticeships; short skills programme training in construction material manufacturing; and training on plumbing.

The targeted training programmes are aimed at capacitating youth and other people with lower skills levels to undertake higher level theoretical and practical training in construction so that they are employable at the end of training. The other objective is to increase the pool of SMMEs, cooperatives and NPOs in the construction sector.

• More training funding proposals will be developed for submission to potential funders including the CETA .

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SANITATION: WATER SERVICES AUTHORITY SUPPORT

– Between January 2013 and March 2013, only 6 support rollout inception and follow-up meetings were held with 6 newly identified municipalities in Eastern Cape, Free State and Limpopo where the team either introduced the Sanitation Job Creation Programme at the new municipalities and key support areas addressed or municipalities engaged on the developed draft support plans.

– Follow-ups were also made with DHS Western Cape Sanitation team on the Drakenstein LM SMME development workshop to be facilitated by the Department of Trade and Industry (DTI)’s Cooperative Incentive Scheme. Workshop to explore the approach to supporting Drakenstein LED Unit in establishment and development of new and existing SMMEs / cooperatives.

– The draft support plan was developed for input and comments from relevant officials at Madibeng Local Municipality in North West, whereas two action plans were developed for actioning at Ventersdorp and Kgetleng Municipalities after discussions with relevant officials. Training of beneficiaries at the two municipalities was also discussed.

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SANITATION: SUPPORT PROVIDED• Support to existing sites (Cooperatives / SMMEs)

– Tonga Precast Cooperative is currently supported to get manufacturing off the ground.

DTI support through the Cooperative Incentive Scheme will be linked to the project;

Cooperative is also assisted with sourcing of funding from CETA for training of beneficiaries.

No Project Steering Committee meeting was held at the project site during the current reporting period, although support is ongoing.

Members of the cooperative are currently using two paving brick machines to manufacture paving bricks.

Their immediate needs are: cement bags, technical training as well as assistance with accessing the market. A funding proposal on technical training of the cooperative members will be developed and submitted to the CETA for consideration. The CETA also supports skills development in respect of materials manufacturing.

SANITATION: RURAL HOUSEHOLD INFRASTRUCTURE PROGRAMME

(JOB CREATION)• By end January 2013, the RHIP reportedly created 8,886

cumulative jobs since 2010 at 50 municipalities with Eastern Cape creating 2 902 jobs, Free State 396, KwaZulu-Natal 1 850, Limpopo 1 715, Mpumalanga 972, Northern Cape 70 and North West 981.

• Furthermore, by end of February 2013 the programme reportedly created 4 557 jobs during Phase 3 of implementation at 28 municipalities in Eastern Cape, Free State, KwaZulu-Natal, Limpopo, Mpumalanga, North West and Northern Cape. Of this total jobs created, 836 were for women, about 2 273 youths, 17 people living with disabilities and 1 431 other groups.

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SANITATION: RURAL HOUSEHOLD INFRASTRUCTURE PROGRAMME (JOB

CREATION) Cont. Skills and jobs the RHIP had planned to develop and create are in areas of:

brick laying, pit lining, reinforced concrete manufacture (slab casting), quality assessment (technical standards), health and hygiene and user education skills for peer educators within the beneficiary communities , and other jobs such as transportation of materials, assembly of the pre-cast top structures and any additional skills which to be utilized were to depend on basic numeracy and literacy.

Jobs that were created within the RHIP were in pit digging and lining as well as assembly of prefabs and slabs.

Contractors sub-contracted to the RHIP continue to participate in implementation of sanitation projects in phase 2 of the programme.

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ENTITIES PERFORMANCE: SOCIAL HOUSING REGULATORY

AUTHORITY

• As at the end of the 4th quarter a total of 43 SHIs have been accredited of which 8 are fully accredited, 12 conditionally accredited, 23 pre-accredited and 8 were declined.

• Finalised Social Housing Infrastructure programme (SHIP) 3B Contracts signing.

• Preparation for the SHIP 4A Call for Proposals, this will be a closed call for proposals – only Accredited SHIs should apply.

• First draft of the National Social Housing pipeline has been completed and presented to a number of provinces for their endorsement.

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ENTITIES PERFORMANCE: SOCIAL HOUSING REGULATORY

AUTHORITY Cont.

• The SHRA is in the process of developing a regulatory framework centered on risk based approach, with this the regulatory framework SHRA seeks to find a better way of measuring performance of the Social Housing Sector in the process.

• The reporting SHI tool for the 4th quarter has been received and currently being assessed, feedback will be given to the SHIs by May 2013.

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HOUSING DEVELOPMENT AGENCY

• The agency facilitated the release of two state properties in Rustenburg Municipality measuring approximately 42 692 815ha and two properties in Madibeng Municipality measuring approximately 1 089 4311ha.

• The agency also facilitated the release of 7 546 182ha of state land in Maluti-a-Phofung.

• The agency facilitated the acquisition, transfer and registration of 2 952 526 ha of private land in Ventersdorp.

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HOUSING DEVELOPMENT AGENCY Cont.

• Two Johannesburg inner city landed properties measuring 03964ha have been transferred and registered in the HDA’s name.

• Five Servcon properties measuring approximately 7 465 626 ha have been acquired nationally.

• An implementation protocol was concluded with KZN Department of Human Settlements.

• The community consultation process has commenced. Informal Settlement Upgrading work is well underway in the Northern Cape and rapid assessments in six settlements have also been undertaken.

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NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY

SUBSIDY HOUSING PROGRAMME

• The Subsidy Housing Programme signed 5 contract against a target of 11.

• Despite the lower than expected volume of contracts signed for the quarter, the value of projects achieved R416 million against a target of R277 million.

• Houses and sites in signed contracts were 6 073 against a target of 4 235.

• Houses Built and sites Serviced achieved 650 units against a target of 20.

• The Subsidy Housing Programme will be greatly influenced by the roll out of the Contractor Finance and Development Programme (CFDP) initiative which is expected to drive project volumes in the new year.

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NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY Cont.

AFFORDABLE HOUSING PROGRAMME

• Performance in the Affordable Housing Programme is generally below target.

• Value of Projects achieved R2 2 3 million against a target of R115 million.

• 3 Contracts were signed against a target of 8.

• 101 Houses Built & sites serviced were achieved against a target of 345.

• The entity is also engaging with relevant parties to consider increasing the product offering into the rental market.

• The Affordable Housing Programme is making significant inroads into national expansion with discussions held with developers in Eastern Cape, KZN and Western Cape.

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NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY Cont.

INFRASTRUCTURE AND COMMUNITY FACILITIES PROGRAMME

• The Infrastructure and Community facilities programme has suffered significant losses resulting in NURCHA adopting a payment certificate based lending approach as part of its credit criteria. This was an expected consequence of the change in credit rules

• The programme has performed poorly for the quarter under review

• Projects completed achieved 50% of its target of 2 for the quarter

• Due to the risk associated with this lending programme NUCHA’s Board is reviewing continued lending to contractors undertaking infrastructure and community facilities and will take a final decision in due course.

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RURAL HOUSING LOAN FUND • The RHLF’s performance in the fourth quarter was in general below targets as a

result of funding constraints.

• Cash disbursements were R2 2 2 million which was R3.2 million below the set target.

• The Number of loans achieved for the quarter were 9034 which was slightly less than the budget figure of 9551.

• Percentage of the number of loans used for housing related purposes exceeded the target of 80%.

• Percentage of loans accessed by borrowers with income of R3500 and less achieved 65.8% exceeded the minimum target of 60%

• Operating surplus before taxation was higher that the budgeted figure.

• Value of loans in place was below the quarterly target.

• Loans that have been approved but could not be paid out due to lack of funds amount to R60million..

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NATIONAL HOME BUILDERS REGISTRATION COUNCIL

NON-SUBSIDY SECTOR

• Registration of new home builders achieved 711 against a target of 835.

• Renewal of registered Home Builders were 2 916 against a target of 2 860.

• Enrolments of new homes were 9 683 against 5 384.

• Late enrolments of new homes were 629 against a target of 269.

• The Number homes inspected in fourth quarter was 29 475.

• Number of inspections performed in the fourth Quarter was 65 823.

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NATIONAL HOME BUILDERS REGISTRATION COUNCIL Cont.

NON-SUBSIDY SECTOR

• The number of complaints lodged in the fourth quarter is 157, of which 114 have potential risk of major structural defects. Management’s target is to resolve a complaint or escalate to conciliation process within 30 days of receipt.

• A total of 1,906 applications for late enrolment certificates were issued during the fourth quarter. The risk for late enrolments in the Non-Subsidy is mitigated through the provision of financial guarantee from the home builder.

• The NHBRC’s engagement with the Provincial Departments of Human Settlement is beginning to bear positive result as we have noted a significant improvement in the submission of projects prior to construction.

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NATIONAL HOME BUILDERS REGISTRATION COUNCIL Cont.

SUBSIDY SECTOR

• A total of 10 projects enrolments consisting of 9,459 units were received in the quarter and approved.

• A total of 427 home enrolments consisting of 45 699 units were captured and approved in the quarter.

• A total of 586 home enrolments projects were approved consisting of 41,633 units were approved.

• Number of subsidy homes inspected were 30,736.

• The number of inspections conducted were 59,264.

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ESTATE AGENCY AFFAIRS BOARD

• There were 1744 New Registrations in the fourth quarter as compared to 1395 in 2012.

• There were 4348 Renewals in quarter under review compared to 4003 in 2012.

• There were no claims committee meetings held in the fourth quarter.

• There were no appeals held in the fourth quarter.

• 398 Complaints were raised in the quarter under review.

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ESTATE AGENCY AFFAIRS BOARD Cont.

• 519 inspections were performed compared to 300 target for the quarter.

• 61% of the 331 candidates who wrote the NQF Level 4 PDE exam passed.

• 67% of the 86 candidates who wrote the NQF Level 5 PDE exam passed.

• 207 Estate Agents applied and qualified for exemption from the PDE as per statutory requirement.

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NATIONAL HOUSING FINANCE CORPORATION

• The fourth quarter saw a marked improvement in the conversion of approvals to disbursements with disbursements of R253 million

• The approved loans at year-end stood at R1.385 billion which bodes well for the disbursements target for the first quarter or two of 2013/14.

• Of significance is the initiative with I HS where the NHFC, as an anchor investor, will partner with the International Finance Corporation to generate impact of 43 000 housing units as well as leverage additional equity of R3 billion and additional R10 billion of debt funding in a transaction for which shareholder approval is still be sought.

• The overall financial performance of the NHFC was negatively impacted by the low growth in the loan book, the conversion of certain loans to equity, the continued low interest rate environment (a 0.50% drop in interest rates in July 2012 resulted in a R7.5 to 8.0 million decrease in lending income) and certain early loan settlements by clients.

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NATIONAL HOUSING FINANCE CORPORATION Cont.

• Projects: R290 million was achieved versus a revised budget of R379.9 million.

• Projects delivered 7 486 housing units versus 4 722 in the revised budget.

• The NHFC has been able to achieve much success through the impact of leveraging third party funds which delivered over 4 000 of the above units.

• The division was also successful in leveraging over R1.38 billion in third party funding against a revised budget of R964 million.

• Constrained lending by banks for project finance to developers and mortgage loans to homeowners continued to be a challenge during the year.

• The Commercial division achieved R168 million versus a revised budget of R109 million.

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NATIONAL HOUSING FINANCE CORPORATION Cont.

• Strategic Partnerships and Investments: R20 million was disbursed versus a revised budget of R91 million. The unit under-achieved largely as result of a delay in the finalisation of the I HS transaction, amongst other things.

• The MDIC business plan is currently being appraised by National Treasury and its appointed consultants - PwC. A decision is expected from National Treasury around the nature and quantum of capitalisation of MDIC in April/May 2013 which will guide the next steps of the project, including the license application from FSB

• With respect to FLISP, while 8 Provinces have signed implementation Protocols (IP’s) with the NHFC, only 5 Provinces have committed funds to the programme.

• An amount of R170 million has been transferred to the NHFC, with about R1.025 million of the funds already transferred to the approved beneficiaries.

DEPARTMENTAL FINANCIAL PERFORMANCE 1/04/2012 TO 31/12/2012

Programmes Adjusted Allocation Expenditure Variance % Spent

1. Administration 256,606,000 113,442,371 143,163,629 44%

2. Housing Policy, Research and Monitoring 46,719,000 24,515,923 22,203,077 52%

3. Housing Planning and Delivery Support 236,460,000 100,700,822 135,759,178 43%

4. Housing Development Finance 24,440,076,000 16,697,410,766 7,742,665,234 68%

5. Strategic Relations and Governance 157,944,000 91,405,369 66,538,631 58%

Total 25,137,805,000 17,027,475,251 8,110,329,749 68%

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DEPARTMENTAL FINANCIAL PERFORMANCE 1/01/2013 TO 31/03/2013

Quarterly Expenditure vs. Projections 4th quarter

Programme BudgetRemainder of budget from April to Dec.

Expenditure Variance (Budget – Exp.) % Spent

1. Administration 236,106,000 143,163,629 60,889,891 175,216,109 26%

2. Housing Policy, Research and Monitoring 46,719,000 22,203,077 7,291,116 39,427,884 16%

3. Housing Planning and Delivery Support 224,460,000 135,759,178 42,502,372 181,957,628 19%

4. Housing Development Finance 24,440,076,000 7,742,665,234 7,296,291,738 17,143,784,262 30%

5. Strategic Relations and Governance 190,444,000 66,538,631 63,338,769 127,105,231 33%

Total 25,137,805,000 8,110,329,749 7,470,313,886 17,667,491,114 30%

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DEPARTMENTAL FINANCIAL PERFORMANCE AS AT 31 MARCH 2013

Programmes Final Allocation Expenditure Variance % Spent

1. Administration 236,106,000 174,317,784 61,788,216 74%

2. Housing Policy, Research and Monitoring

46,719,000 32,355,670 14,363,330 69%

3. Housing Planning and Delivery Support 224,460,000 143,667,038 80,792,962 64%

4. Housing Development Finance 24,440,076,000 23,993,326,697 446,749,303 98%

5. Strategic Relations and Governance 190,444,000 154,119,264 36,324,736 81%

Total 25,137,805,000 24,497,786,453 640,018,547 97%

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GRANTS AND TRANSFER PAYMENTS AS 1/04/2012 TO 31/12/2012

Transfer Payments Total Allocation Expenditure Variance % Spent

Human Settlements Development Grant 15,725,959,000 11,747,729,000 3,978,230,000 75%

Urban Settlements Development Grant 7,392,206,000 4,354,568,500 3,037,637,500 59%

Social Housing Regulatory Authority: Operational 21,096,000 21,096,000 - 100%

Social Housing Regulatory Authority: Capital Restructuring Grant

647,401,000 260,000,000 387,401,000 40%

Rural Housing Loan Fund 31,975,000 31,975,000 - 100%

Housing Development Agency 92,336,000 69,252,000 23,084,000 75%

National Urban Reconstruction and Housing Agency

120,000,000 120,000,000 - 100%

Bursaries Scheme 13,820,251 8,102,014 5,718,237 59%

UNHABITAT 1,280,000 1,280,000 - 100%

Rural Households Infrastructure Development 340,625,000 54,226,408 286,398,592 16%

Total 24,386,698,251 16,668,228,922 7,718,469,329 68%

GRANTS AND TRANSFER PAYMENTS AS 1/01/2013 TO 31/03/2013

50

Transfer Payments Total Allocation Remainder of budget from April to Dec.

Expenditure Variance %

Spent

Human Settlements Development Grant 15,725,959,000 3,978,230,000 3,647,303,000 12,078,656,000 23%

Urban Settlements Development Grant 7,392,206,000 3,037,637,500 3,037,637,500 4,354,568,500 41%

Social Housing Regulatory Authority: Operational

21,096,000 - - 21,096,000 0%


647,401,000 387,401,000 387,401,000 260,000,000 60%

Rural Housing Loan Fund 31,975,000 - - 31,975,000 0%

Housing Development Agency 92,336,000 23,084,000 23,084,000 69,252,000 25%


120,000,000 - - 120,000,000 0%

Bursaries Scheme 13,820,251 5,718,237 5,718,237 8,102,014 41%

UNHABITAT 1,280,000 - - 1,280,000 0%

Rural Households Infrastructure Development

340,625,000 286,398,592 185,858,964 154,766,036 55%

Total 24,386,698,251 7,718,469,329 7,287,002,701 17,099,695,550 30%

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GRANTS AND TRANSFER PAYMENTS AS AT 31 MARCH 2013

Transfer Payments Total Allocation Expenditure Variance % Spent

Human Settlements Development Grant 15,725,959,000 15,395,032,000 330,927,000 98%

Urban Settlements Development Grant 7,392,206,000 7,392,206,000 - 100%

Social Housing Regulatory Authority: Operational 21,096,000 21,096,000 - 100%


647,401,000 647,401,000 - 100%

Rural Housing Loan Fund 31,975,000 31,975,000 - 100%

Housing Development Agency 92,336,000 92,336,000 - 100%


120,000,000 120,000,000 - 100%

Bursaries Scheme 13,820,251 13,820,251 0 100%

UNHABITAT 1,280,000 1,279,036 964 100%

Rural Households Infrastructure Development 340,625,000 240,085,372 100,539,628 70%

Total 24,386,698,251 23,955,230,659 431,467,592 98%

HUMAN SETTLEMENTS DEVELOPMENT GRANT (HSDG) FINANCIAL PERFORMANCE

01/04/2012 TO 31/12/2012

ProvincesTotal Available

Year to date (1 April 2012 - 31 December 2012)

Transferred Funds Spent by Provinces

Variance Spent vs Total

Available Spent as % of Total Available

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

Eastern Cape 2,292,859 1,524,418 1,365,069 927,790 60%

Free State 961,619 813,374 721,093 240,526 75%

Gauteng 4,003,776 2,847,097 2,576,174 1,427,602 64%

KwaZulu-Natal 2,915,297 2,245,663 1,966,901 948,396 67%

Limpopo 1,471,617 1,208,630 832,909 638,708 57%Mpumalanga 965,127 737,984 711,992 253,135 74%

Northern Cape 339,551 244,417 203,573 135,978 60%

North West 1,050,933 870,955 822,017 228,916 78%Western Cape 1,725,180 1,255,191 1,139,310 585,870 66%Total 15,725,959 11,747,729 10,339,038 5,386,921 66%

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HSDG DELIVERY PERFORMANCE 01/04/2012 TO 31/12/2012

Province

Annual delivery targets Delivery Performance as at 31 December 2012

Variance Delivery

sites

Variance Delivery

Top Structure

Total Variance DeliverySites

(units)

Top Structure

(units)

Total Delivery Targets

Sites (units)

Top Structure

(units)

Total Delivery

Performance

Eastern Cape 17,366 17,999 35,365 4,865 4,204 9,069 12,501 13,795 26,296

Free State 27,264 8,300 35,564 3,194 3,979 7,173 24,070 4,321 28,391

Gauteng 14,536 26,348 40,884 3,992 15,447 19,439 10,544 10,901 21,445

KwaZulu-Natal 9,305 29,399 38,704 4,333 15,906 20,239 4,972 13,493 18,465

Limpopo 14,577 17,760 32,337 1,777 8,067 9,844 12,800 9,693 22,493

Mpumalanga 5,914 10,015 15,929 125 4,491 4,616 5,789 5,524 11,313

Northern Cape 2,785 2,646 5,431 823 1,404 2,227 1,962 1,242 3,204

North West 3,717 10,167 13,884 2,507 11,197 13,704 1,210 -1,030 180

Western Cape 10,175 7,332 17,507 4,692 7,528 12,220 5,483 -196 5,287

Total 105,639 129,966 235,605 26,308 72,223 98,531 79,331 57,743 137,074

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HSDG FINANCIAL PERFORMANCE 01/01/2013 TO 31/12/2013

ProvincesDORA Allocation

2012/13

Adjustments Provincial Rollovers

Total Available to

Provinces

4th quarter expenditure

Spent by Provinces

Variance Spent vs Total

Available

Spent as % of Total

AvailableR'000 R'000 R'000 R'000 R'000

Eastern Cape 2,292,859 133,829 2,426,688 637,106 1,789,582 26%

Free State 961,619 - 961,619 243,242 718,377 25%

Gauteng 4,003,776 - 4,003,776 1,425,415 2,578,361 36%

KwaZulu-Natal 2,915,297 - 2,915,297 948,396 1,966,901 33%

Limpopo 1,471,617 111,580 1,583,197 482,623 1,100,574 30%

Mpumalanga 965,127 - 965,127 241,070 724,057 25%

Northern Cape 339,551 - 339,551 135,965 203,586 40%

North West 1,050,933 150,334 1,201,267 228,838 972,429 19%

Western Cape 1,725,180 - 1,725,180 585,870 1,139,310 34%

Total 15,725,959 395,743 16,121,702 4,928,525 11,193,177 31%

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HSDG DELIVERY PERFORMANCE 01/01/2013 TO 31/03/2013

Province

Annual delivery targets Delivery Performance 4th QuarterVariance Delivery

sites

Variance Delivery

Top Structure

Total Variance Delivery

Sites (units)

Top Structure

(units)

Total Delivery Targets

Sites (units)

Top Structure

(units)

Total Delivery

Performance

Eastern Cape 17,366 17,999 35,365 5,593 7,880 13,473 11,773 10,119 21,892

Free State 27,264 8,300 35,564 1,876 1,498 3,374 25,388 6,802 32,190

Gauteng 14,536 26,348 40,884 3,685 5,773 9,458 10,851 20,575 31,426

KwaZulu-Natal 9,305 29,399 38,704 1,730 10,034 11,764 7,575 19,365 26,940

Limpopo 14,577 17,760 32,337 174 3,942 4,116 14,403 13,818 28,221

Mpumalanga 5,914 10,015 15,929 1,873 3,080 4,953 4,041 6,935 10,976

Northern Cape 2,785 2,646 5,431 1,196 1,416 2,612 1,589 1,230 2,819

North West 3,717 10,167 13,884 -298 3,227 2,929 4,015 6,940 10,955

Western Cape 10,175 7,332 17,507 3,561 6,006 9,567 6,614 1,326 7,940

Total 105,639 129,966 235,605 19,390 42,856 62,246 86,249 87,110 173,359

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URBAN SETTLEMENTS DEVELOPMENT GRANT (USDG) FINANCIAL PERFORMANCE

1/07/2012 TO 31/12/2012

Municipalities

Year to date (1 July 2012 - 31 December 2013)

Allocated Funds National Rollovers Total Available Transferred

FundsSpent by

Municipality

Variance Spent vs. Total

Available

Spent as % of Total

AvailableR'000 R'000 R'000 R'000 R'000 R'000

Buffalo City 499,474 267,314 766,788 224,843 95,875 670,913 13%

Nelson Mandela 592,870 592,870 415,009 206,502 386,368 35%

Mangaung 485,967 128,578 614,545 342,984 214,965 399,580 35%

Ekurhuleni 1,212,537 1,212,537 727,522 426,599 785,938 35%

City of JHB 1,290,748 76,439 1,367,187 774,449 252,149 1,115,038 18%

City of Tshwane 1,051,070 10,118 1,061,188 683,215 446,683 614,505 42%

eThekwini 1,287,560 28,369 1,315,929 596,547 242,679 1,073,250 18%

City of Cape Town 971,980 70,869 1,042,849 590,000 320,367 722,482 31%

Total 7,392,206 581,687 7,973,893 4,354,569 2,205,819 5,768,074 28%

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USDG FINANCIAL PERFORMANCE 1/01/2013 TO 31/03/2013

Municipalities

Year to date (1 Jan 2013 - 31 March 2013)

Allocated Funds National Rollovers Total Available Transferred

FundsSpent by

Municipality

Variance Spent vs. Total

Available

Spent as % of Total

AvailableR'000 R'000 R'000 R'000 R'000 R'000

Buffalo City 499,474 267,314 766,788 274,631 60,028 706,760 8%

Nelson Mandela 592,870 592,870 177,861 107,912 484,958 18%

Mangaung 485,967 128,578 614,545 142,984 85,227 529,318 14%

Ekurhuleni 1,212,537 1,212,537 485,015 214,029 998,508 18%

City of JHB 1,290,748 76,439 1,367,187 516,299 241,058 1,126,129 18%

City of Tshwane 1,051,070 10,118 1,061,188 367,855 207,331 853,857 20%

eThekwini 1,287,560 28,369 1,315,929 691,013 560,321 755,608 43%

City of Cape Town 971,980 70,869 1,042,849 381,980 162,979 879,870 16%

Total 7,392,206 581,687 7,973,893 3,037,638 1,638,885 6,335,008 21%

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USDG Performance 1 July 2012 to March 2013

Services2012/13 Budget Total Expenditure

R’000 R’000

Human Settlements 1,720,575 893,223

Water and Sanitation 2,848,362 1,259,248

Roads, Storm Water and Transport 1,661,473 935,835

Land Acquisition 56,764 9,776

Engineering Services 346,900 132,035

Electricity 773,426 375,362

Planning 125,592 63,021

Corporate Services 84,397 31,526

Social Services 335,126 126,678

Tourism 21,277 8,000

Agriculture 0 10,000

Total 7,973,893 3,844,704

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USDG FINANCIAL PERFORMANCE 1/04/2013 TO 30/06/2013

Municipalities

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

Allocated Funds National Rollovers Total Available Spent by

MunicipalitySpent as % of

Total AvailableR'000 R'000 R'000 R'000

Buffalo City 499,474 267,314 766,788 295,340 39%

Nelson Mandela 592,870 592,870 393,591 66%

Mangaung 485,967 128,578 614,545 358,156 58%

Ekurhuleni 1,212,537 1,212,537 709,698 59%

City of JHB 1,290,748 76,439 1,367,187 955,762 70%

City of Tshwane 1,051,070 10,118 1,061,188 730,350 69%

eThekwini 1,287,560 28,369 1,315,929 598,483 45%

City of Cape Town 971,980 70,869 1,042,849 770,888 74%

Total 7,392,206 581,687 7,973,893 4,812,268 60%

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REASONS FOR UNDER SPENDING

• Non/Slow filling of vacancies.

• Turn Around strategy • Additional office accommodation

– Actions taken

• Vacancies are in the process of being filled.

60

REASONS FOR UNDER SPENDING Cont.

• Slow receipt of invoices from Special Investigation unit.

– Challenges were experienced with SIU not providing the Department with invoices due to changes to SIU’s legislation

– Action taken

• The Department followed up with SIU on the challenges experienced especially where work was performed and no invoicing was received.

• SIU provided invoices amounting to about R14.5 million.

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• SITA services provided on the HSS environment

– Challenge• Initially problems was experienced with the signing of the

service level agreement between SITA and the Department.• SITA only able to provide limited services on the HSS

environment

– Action taken• The service level agreement was since signed and SITA was

requested to provide invoices.

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• Delay in finalizing the National Upgrading Support Programme contributed to the underspending.– Challenges were initially experienced in the

approval of the project. – The project is underway and various bids are at

different stages of the supply chain management processes.

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REASONS FOR UNDER SPENDING Cont.• Additional office accommodation

– Challenge

• Additional office accommodation was secured but the tenants installation was not done resulting in the Department not able to utilize the accommodation.

– Action taken

• Negations between the Department and Department of Public Works were held to resolve the issues.

• Due to problems within Public Works the finalization of negotiations was delayed.

• The problems were resolved between the Department and Public Works and the refurbishment which delayed the occupation of the additional office accommodation is projected to be finalized by January 2014.

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• Rural Household Infrastructure Grant

– Challenge

• Slow delivery by contractors has been seen on this grant.

– Action taken

• A task team has been established to address issues delaying delivery. Additional 6 contractors were appointed to assist with the building of toilets in various approved municipalities.

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• Human Settlements Development Grant

– Eastern Cape Provincial Human Settlements Department declared savings of R284 million and

– Limpopo Provincial Human Settlements Department declared savings of R47 million.

– These amounts to a total of R330 million which translates into 2% of the total allocation of the grant was declared as savings.

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67

CHALLENGES EXPERIENCED

• The lack of appropriate prioritization of strategic priorities by Provinces and Municipalities

• The lack of a medium and long term programme and project pipeline in Provinces and Municipalities.

• The lack of bulk and link infrastructure to implement projects in municipalities.

• The lack of appropriate technical skills and experience in Provinces and Municipalities.

• Inadequate alignment of the strategic and performance plans of the Provinces and Municipalities to the National Human Settlements Priorities

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STRATEGIC MITIGATION MEASURES

• The Department has initiated a process to assist with the development of medium and long term programme and project pipelines.

• The Department has put in place a process to improve funding for bulk and link infrastructure which includes the extension of the USDG to municipalities other than the Metropolitan Municipalities.

• The Department has initiated a process including NUSP to allow for skills and expertise support to Provinces and Municipalities.

• The Department has undertaken an extensive process of support to Provinces and Municipalities to assist to improve Business Plan prioritization.

• The Department has put in place measures to improve monitoring, evaluation and compliance including oversight visits to Provinces and Municipalities

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Documents

CONTENTS