National Department of Public Works

The implementation of GIAMAin National and Provincial

Government

Portfolio Committee on Public Works

16 October 2007

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1. Introduction

This presentation outlines the proposed plan for the implementation of the Government Immovable Asset Management Act in the National and Provincial spheres of Government.

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2. Current StatusThe Government Immovable Asset Management Bill [B1B-2006] was adopted by both National Assembly and National Council of Provinces and has been submitted to the President for approval. In the interim, DPW has:

Finalized a comprehensive guideline for the compilation of User Asset Management plan (U-AMP) and has been distributed for further comment.

Developed a comprehensive discussion document on the proposed approach to extend GIAMA to local government, which was presented to dplg.

Established a DPW/dplg task team which will look into the best way to extend the principles and objectives of GIAMA to Local Government, taking into account existing legislation.

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Current Status (continued)

Established the GIAMA Technical Committee consisting of representatives of both National and Provincial Custodians, that will meet at least once every 3 months to -

make inputs on guidelines, norms & standards, minimum requirements, etc;

develop a common approach to the compilation and maintenance of immovable asset registers;

develop an implementation plan for both national and provincial department; and

advise Minister/MEC’s and DG/HOD’s of Public Works on guidelines, norms & standards, minimum requirements, etc.

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Current Status (continued)

Commenced with workshops, discussions and interactions to highlight to provincial departments the requirements of GIAMA. The workshops and briefing sessions that we have conducted to date are: KwaZulu-Natal Provincial Department Eastern Cape Portfolio Committee Eastern Cape Provincial Department Mpumalanga Provincial Department Limpopo Provincial Department DPW Property Managers Forum DPW Top Management Committee DPW Asset Managers and IT Managers

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Current Status (continued)

Commenced with the development of other guidelines such as the compilation and maintenance of immovable asset registers as per the requirements of GIAMA.

GIAMA remains a standing agenda item at all Public Works HOD and MIN/MEC meetings.

DPW continuously consults with National Treasury to ensure consistency with the Public Finance Management Act (PFMA) and its regulations, as well as National Treasury’s Asset Management Guideline.

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3. Responsibilities of User

A user of immovable assets utilises such assets to give best effect to its functions and therefore must produce a user asset management plan (U-AMP) to ensure:

accountable, fair and transparent utilisation of immovable assets;

effective, efficient and economic use of immovable assets;

reduced overall cost of service delivery;

reduced demand for new immovable assets.

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4. Responsibilities of CustodiansCustodians are responsible for the efficient & effective management of immovable assets throughout their life-cycle and therefore must produce a custodian asset management plan to ensure that immovable assets are:

provided in a transparent & cost effective manner to meet the service delivery requirements of users;

maintained in the state in which they would optimally support service delivery objectives;

assessed in relation to performance, suitability, condition & effect that condition of an asset has on service delivery ability; and

disposed of if the assessments so indicate.

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5. Immovable Asset Management Plans

All national and provincial departments will be required to annually compile an Asset Management Plan (AMP) that will form part of Government’s strategic planning & budgeting processes.

A department responsible for custodial functions in respect of immovable assets will compile a Custodian AMP (C-AMP) that must cover all the immovable assets (State-owned and leased) that such custodian controls or intends to control.

A user of immovable assets will compile a User AMP (U-AMP) that must cover all the immovable assets (State-owned and leased) that such department uses or intends to use.

Custodians and users of immovable assets should jointly conduct the annual strategic planning process. Custodians must assist users by availing information pertaining to: performance of immovable assets allocated to such users;

and available feasibility studies on acquisitions, refurbishments

and assets to be surrendered.

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Immovable Asset Management Plans (Continued)

All AMPs must be submitted to the relevant Treasury annually (on a date to be determined by that Treasury).

AMPs will inform the annual budgetary process and must be revised once budget allocations are finalised by the relevant Treasury.

Revised AMPs must be included in the annual strategic plans of national and provincial departments and will therefore be presented to Parliament & Provincial Legislatures respectively.

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Immovable Asset

Planning &Budgeting

Cycle

User’s strategic

objectivesImmovable asset information(To be provided by Custodian)

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6. Implementation requirements

Minister of Public Works to consult with role-players and to publish a plan that determine the dates for implementation of GIAMA

For the implementation to take effect the Minister must: Publish regulations and guidelines for Immovable

Asset Management Plans Publish norms and standards in support of

Immovable Asset Management and Asset Management Plans

Determine the applicable dates for implementation by Users and Custodians

Exempt departments or assets to which GIAMA does not apply

7. Key Role-players

National Treasury Office of the Accountant-General Budget Office

Provincial Treasuries Custodians

National Department of Public Works Department of Land Affairs Department of Water Affairs & Forestry Provincial Departments of Public Works Other Provincial Custodians

Users National & Provincial

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8. Provincial Pre-implementation

Self assessment questionnaire to assess state of readiness Each Province prepare a step by step implementation

proposal for implementing GIAMA in that province Commence systematic update of immovable asset register

information with essential information Determine which properties each custodian is responsible for

Where custodianship is undetermined or in dispute between national and provincial, a “deemed custodian” must be determined through consultation , until vesting has been confirmed

Determine who is occupying the facilities, taking into account shared facilities

Shared facilities include multiple provincial users and national/provincial users

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9. GIAMA State of Readiness Given the varied state of readiness of users and custodians, the

Minister of Public Works would need to consider a phased approach to the implementation of GIAMA.

As a custodian, NDPW has done some preparatory work to implement GIAMA and National Government is therefore in a position to precede Provinces with the implementation of GIAMA.

Each custodian (in consultation with users, where applicable), must submit a proposal on the implementation of GIAMA in its sphere of operation to the DG of NDPW, based on the following parameters: state of immovable asset register; institutional capacity ; and specific constraints that such custodian and users may face. (A

self-assessment questionnaire will be provided to assist custodians.)

NDPW, in consultation with all custodians will prepare a single implementation plan for GIAMA taking cognisance of such proposals.

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10. Guidelines and Regulations Planning Guides

Immovable asset management User asset management plans Custodian asset management plan

Custodian Guides Life-cycle management Condition assessment Asset performance measurement Feasibility assessment Asset register (compilation and maintenance) Valuation

Operations Guides Acquisition of immovable assets Maintenance (Planned and day-to-day) Facilities Management and Operations Disposal of immovable assets

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11. Norms and Standards

Classification system for assets Space and cost norms of each asset class Service life and life-cycle costing Condition norms and maintenance standards Facilities management standards Required performance standards

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12. Institutional Capacity Required skills:

Strategic planning Financial management Technical

Internal policies & processes aligned with GIAMA Asset management policies Strategic management & budgeting processes in both

user and custodians Asset-, property - & facilities management processes Customer satisfaction measurement & monitoring

Asset Performance Management Frameworks (Custodians only)

Monitoring & evaluation of implementation of GIAMA within the ambit of a custodian’s responsibility

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13. Technical Committee Deliverables

The following issues were identified during the meeting of the GIAMA Technical Committee as priorities for uniform guidance to all provinces:

Government officials in state owned housing – National and Gauteng

Valuation of properties - National

Leasing of accommodation from the private sector – National, Gauteng, North West and Free State

Minimum requirements for the asset register – National and Limpopo

Vesting of state owned properties – National and Western Cape

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Technical Committee Deliverables

(Continued)

Devolution of property rates and taxes – National and Gauteng

SA Schools Act (School board vs custodian responsibilities) - National

Each Province may establish sub-forums for Users and Custodians

Training and workshops will be conducted on a regular basis

14. Key milestones before implementation

Item Date

Technical forum established 31 August 2007

Circulate draft U-AMP Guideline for commentConsultation workshop (National and Provincial)Guideline for U-AMP (approved by Minister)

15 September 2007

31 October 2007 30 November

2007

Circulate draft C-AMP Guideline for comment Consultation workshop (National & Provincial)Guideline for C-AMP (approved by Minister)

15 November 2007

15 February 200831 March 2008

Publish draft regulations for commentRegulations for implementation of GIAMA gazetted

28 February 200831 March 2008

Priority Space NormsFirst draft of planning guidelines completed

28 February 200830 June 2008 21

15. Proposed implementation dates

Sphere of government

Date to commence

preparation of first AMPS in

terms of GIAMA

Date to submit first AMP to

custodian and relevant treasury

National Government

Users Nov 2007 May 2009

Custodians Nov 2007 Aug 2009

Provincial Government

Users Apr 2008 May 2010

Custodians Apr 2008 Aug 201022

16. ConclusionGIAMA affords government the opportunity to improve service delivery through:

A facilitated process to improve asset management

Structured immovable asset management plans to improve: implementation of new maintenance and

operational programmes funding of asset related activities

Developing people to fulfil the GIAMA-related functions at national and provincial level

It is therefore vitally important that Departments are well versed with their current asset portfolios and future requirements in order to plan appropriately.

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THANK YOU!!!

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