South Africa Works because of Public Works Quarter 2 Report 2013/14 (Period July, August & September 2013) Portfolio Committee on Public Works 29th January 2014 Cape Town I Public Works I CGO I Pretoria

Layout Part A Performance Information Highlight/Achievement Challenges Some Corrective Measures Part B Financial Information DPW PMTE

Purpose Purpose of the Presentation by the Department of Public Works To reflect on the 2nd Quarter Performance and Financial information of the Department of Public Works in the financial year 2013/14 in order for the Portfolio Committee to advise on improving performance Objective of the Portfolio Committee on Public Works To have an understanding and measure the 2nd Quarter Performance and Financial performance of the Department for the financial year 2013/14.

Methodology of Assessing the Quarterly Reports 3 Phase Approach as per the Approved Department’s Policy Framework For Monitoring, Reporting and Evaluation of Performance Information 2013 and M&E Toolkit, PFMA and Framework for Strategic Plans and Annual Performance Plans Phase 1 (Data Collection & Compliance) – 14th October 2013 – Submissions by all units Phase 2 (Data Cleansing and Analysis) – 15th – 25th October 2013 Phase 3 (Accountability Process) – 28th – 31st October 2013 Key Focus Adherence/Compliance to the Policy framework for monitoring, reporting and evaluation of performance information in the Department of Public Works Effective use of the M&E toolkits to measure and judge progress (Actual versus Target) in order to learn, improve reporting, innovate and adapt to change Encourage the use of quality performance information for decision making and resource management Project the various related components of Performance Information (M&E System) - for example, the inputs, processes, activities, outputs, outcomes, and impacts that constitute projects, programmes, and services To test the appropriateness of the indicators To provide an assessment on the overall performance of the Department

Programme 1 Administration (Pages 6 – 40) This programme serves to provide strategic leadership and support services, including for the accommodation needs and overall management of the Department of Public Works. It is responsive to meet strategic objective 6 of the Department of Public Works and has links with all four other departmental programmes.   Sub-Programmes Internal Audit and Investigation Services Strategic Management Unit Monitoring and Evaluation Intergovernmental Relations Finance and Supply Chain Management Corporate Services

Highlight/Achievement – Programme One: Administration The sub-programmes are largely supportive in nature and play a critical role in enabling the core business of the Department to achieve its objectives. Highlights/Achievements Increased participation in governance structures (EXCO, Accountability EXCO, Audit and Risk Management Committee where decisions are taken and implementation plans are scrutinised for progress) – (IGR – pages 19 - 25) Department’s supportive participation in the development of the 2014/15 Annual Performance Plan (APP) - A guiding document that shapes the strategic plans, operational and Risk champions trained to safeguard the Department’s exposure to risk elements (SMU – pages 11 - 18) Assistance provided to Provincial Departments of Public Works in developing performance indicators as part of the Department’s roles and responsibilities on concurrent mandate. Some of the issues are discussed at MINMEC (M&E – pages 26 - 28) Developed Supply Chain Management (SCM) Policy for better procurement, one of the key challenges facing the Department (Finance and SCM – pages 29 - 30)

Cont. The Department held successful wellness with all regional offices and 9 other government departments – (Corporate Service – pages 31 -40) These Employee Health and Wellness programmes range from Emotional Substance abuse Debt management Awareness & education Physical wellness The Department also produced a Progress report on international human rights instrument on the mainstreaming of Gender/ Disability and Youth through recruitment, procurement, constitution of Committee and Job creation in all DPW programmes

Immovable Asset Management Programme 2 Immovable Asset Management  (Pages 41 - 71) This programme is the largest programme of the Department of Public Works and appropriates at least 48 percent  of the departmental allocation budget. It provides for the management of government’s immovable property portfolio in support of Government’s social, economic, functional and political objectives. In line with the mandate of the Department of Public Works, this programme seeks to achieve the first four strategic objectives of the Department of Public Works   Sub-Programme Strategic Asset Investment Analysis Project and Professional Services Inner-City Regeneration Operations Management Key Accounts management Prestige Management

Programme Two: Immovable Asset Management The strategic objective of this programme is to provide leadership in effective and efficient Immovable Asset Management and in the delivery of infrastructure programmes Highlights/Achievements Management of property debtors in terms of signed contract terms and conditions relevant legislation/regulations and policy were achieved. A total of 1516 property debtors were managed against the target of 1453 - (Reg. Coordination – pages 50 - 62) Full participation of other government departments in DPW’s workshops on User Asset Management Plans (U-AMPs). U-AMPs are tactical plans for managing an organisation's infrastructure and other assets to deliver an agreed standard of service (DRDLR and DHA) - (KAM – pages 65 - 70) Prestige Policy that spells all the standards and norms in their operations to fulfil its mandate completed - (Prestige management – pages 63 - 64)

Cont.… Department’s critical role in the development of precinct Development plans within the city of Tshwane. These plans include the West Capital and Paul Kruger Streep in Tshwane - (ICR – pages 71 - 72)

Expanded Public Works programme (Pages 72 – 76) Programme 3 ensures the creation of work opportunities and the provision of training for unskilled, marginalised and unemployed people in South Africa by coordinating the implementation of EPWP. This programme focuses predominantly on the achievement of strategic objective 4

Programme Three: EPWP EPWP plays a critical role of : Promoting an enabling environment for the creation of short and sustainable work opportunities that eventually contribute to the national goal of job creation and poverty alleviation. Providing technical support to Municipalities in planning and implementing labour-intensive projects. Highlights/Achievements In the second quarter significant progress was made by municipalities in reporting their progress to the Department enabling the Department to reflect on a definite figure about the performance of the programme - (EPWP – page 73) Also, a large number of work opportunities were created with substantial improvements in the EPWP participation among designated groups - (EPWP – page 74)

Property & Construction Industry Policy Regulations Programme 4 Property & Construction Industry Policy Regulations  (Pages 77 – 81) This programme promotes the growth and transformation of the construction and property industries, promote uniformity and best practice in construction and immovable asset management in the public sector. This programme contributes to the realisation of strategic objectives 2, 4 and 5

Programme 4: Property and Construction Policy This programme ensures transformation and regulation of the Construction and Property industries to ensure economic growth and development. It is a dependent programme and largely a process or chain-event driven in nature. It often experiences challenges such as delays in stakeholder feedback on particular policy and political considerations. Its function has a huge impact in the built environment. Highlights/Achievements Consultations held with key stakeholders and EXCO on Draft BEP Policy - (PCIPR – page 78) Inputs consolidated and 2nd Draft Guideline developed on condition assessment for general buildings - (PCIPR – page 80 - 81)

Auxiliary and Associated Services Programme 5 Auxiliary and Associated Services  (Pages 82 – 83) This programme provides for various services, including compensation for losses on the Government assisted housing scheme and assistance to organisations for the preservation of national memorials. Meet the protocol responsibilities for state functions.

Programme 5: Auxiliary and Associated Services Highlights/Achievements Infrastructure support provided to 4 planned & 6 unplanned Prestige Events - (AAS– page 83) S/No EVENT VENUE   1. National Consultative Forum on Mining. SM Makgatho Presidential Guesthouse. 2. Swearing-in Ceremony of newly appointed Ministers and Deputy Ministers. 3. Official Funeral – Former Deputy Minister Swanson-Jacobs. Cape Town. 4. Memorial Service of Former Chief Justice Langa. Durban. 5. Official Funeral – Former Chief Justice Langa. 6. Cabinet Meeting (Lekgotla). 7. Sao Tome & Principe State Visit. Union Buildings & SM Makgatho Presidential Guesthouse. 8. President’s Breakfast with Media Houses’ Editors. 9. President’s Meeting with Press Gallery Association. Tuynhuys – Cape Town. 10. Human Resource Development Council Meeting.

AREAS OF FOCUS (KEY CHALLENGES) Capacity Constraints Line function at planning in determining the required resources to feed into the HR Plan SCM Processes Delays experienced through the procurement processes IT Constraints Lack of integrated systems affecting data integrity, delays and security issues Budget Constraints Promote Performance based budgeting. A practice of developing budgets based on the relationship between program funding levels and expected results from that program

Remarks on Performance information The Department takes into consideration the recommendations made by the oversight bodies such as the: Portfolio Committee on Public Works, Parliament of South Africa Auditor-General of South Africa Audit and Risk management Committee. The contributions by these bodies include ensuring that programmes/projects are effectively monitored towards achieving their goals and internal controls tightened to curb misconduct that may hamper service delivery Throughout the financial year, while taking these contributions into account, the Department continues to find ways of improving in areas of concern and effectively contribute to service delivery

Financial Information Part B Financial Information DPW PMTE

CONTENT 1 Financial Performance Report 2013/14 DPW 2 Expenditure per Programme 3 Expenditure per Branch 4 Expenditure per Region 5 Earmarked expenditure 6. Financial Performance Report 2013/14 PMTE

1. Financial Performance Report 2013/14

Economic classification Summary Expenditure per Economic Classification Economic classification Budget Allocation Exp. as at 30 September 2013 % Spent as at 30 September 2012 R'000  % Compensation of employees 1 468 242 707 299 48% 52% Goods and services 876 278 320 158 37% 39% Goods and services: Office Accommodation 504 900 112 032 22% 29% Transfers and subsidies 2 542 264 1 345 425 53% 67% Infrastructure 676 206 141 349 21% 23% Machinery and equipment 102 146 32 873 30% 15%   Total 6 170 036 2 659 136 43%

Economic classification Summary Expenditure per Programme Economic classification Budget Allocation Exp. as at 30 September 2013 % Spent as at 30 September 2012 R'000   Prog 1. Administration 1 148 162 403 816 35% 34% Prog 2. Immovable Asset Management 2 984 045 1 245 842 42% 56% Prog 3. Expanded Public Works Programme 1 947 969 959 673 50% 51% Prog 4. Property and Construction Industry Policy Regulation 39 182 19 786 41% Prog 5. Auxiliary and Associated Services 50 678 30 019 59% 109% Total 6 170 036 2 659 136 43% 52%

Notes to the expenditure The overall expenditure for the department as at the end of September 2013 is R2.7 billion and expenditure is equivalent to 43% of the total allocation. 7% less than the guideline of 50% Compensation of employees’ expenditure for the month ended September is R707 million and the amount spent is equivalent to 48% of the total allocation. Expenditure for compensation is in line within the guide line of 50%. Future expenditure for Compensation is projected to increase higher than the guideline as advertised posts for professionals are being filled and performance bonuses are processed. Goods and Services expenditure for the month ended September is R320 million and expenditure is equivalent to 37% of the total allocation. Expenditure for Office Accommodation for the month ended September 2013 is R112 million, and expenditure is equivalent to 22% of the total allocation of R504 million.

Notes to the expenditure Expenditure for transfers and subsidies for the end of September is R1.335 billion and expenditure is equivalent to 53% of the total allocation. Transfers and subsidies expenditure of 53% relates to: Council for the Built Environment R19 million Commonwealth War Grave R18 million CIDB R36 million Aug Prop Man Trade Entity R341 million EPWP Non-state Sector R230 million EPWP Integrated Grant to Provinces R177 million EPWP Integrated Grant to municipality R202 million EPWP Social Sector R103 million Independent Development Trust R50 million Parliamentary Villages R8 million

Notes to the expenditure Infrastructure expenditure for the end of September is R141 million and expenditure is equivalent to 21 % of the allocation of R676 million. An amount of R200 million has been requested to be adjusted to compensation of employees and goods and services as part of the adjustment estimates. The purpose of the adjustment is to finance the compensation of employees shortfall and goods and services for turnaround where roll over not being approved. Machinery and equipment expenditure for the end of September is R30 million and expenditure is equivalent to 30% of the total allocation of R102 million .

2. Expenditure per programme

Economic classification Expenditure per Economic Classification: Programme 1 Economic classification Budget Allocation Exp. as at 30 September 2013 % Spent as at 30 September 2012 R'000   Compensation of employees 227 403 112 276 49% 47% Goods and services 384 628 172 243 45% 34% Goods and services: Office Accommodation 504 900 112 032 22% 29% Transfers and subsidies 1 156 519 202% Machinery and equipment 30 075 7 745 26% 44% Total 1 148 162 403 816 35%

Notes to the expenditure The total expenditure for Programme 1 is R404 million and expenditure is equivalent to 35 % of the allocation for the programme. Current payments Compensation of employees expenditure is R112 million and expenditure is equivalent to 49% and the expenditure is in line with the guideline of 50%. Goods and services expenditure is R172 million and expenditure is equivalent to 45%. Expenditure for Goods and services under Office Accommodation is at R112 million which is 22% of the total allocation of R504 million Transfers and subsidies Transfers and services expenditure for R518 000 and expenditure is equivalent to 45% of the allocated budget of R1.1 million Payments for Capital Assets Machinery and equipment expenditure is R7.7 million and expenditure is equivalent to 26% of the allocated budget of R30 million.

Economic classification Expenditure per Economic classification: Programme Economic classification Budget Allocation Exp. as at 30 September 2013 % Spent as at 30 September 2012 R'000   Compensation of employees 1 116 526 540 611 48% 54% Goods and services 266 925 82 393 32% 47% Transfers and subsidies 855 064 456 898 53% 74% Infrastructure 676 206 141 349 21% 23% Machinery and equipment 69 324 24 591 35% 9% Total 2 984 045 1 245 842 42% 56%

Notes to the expenditure The total expenditure for Programme 2 is R1.2 billion and expenditure is equivalent to 42% of the allocation for the programme. Current payments Compensation of employees expenditure is R539 million and expenditure is equivalent to 48%. Goods and services expenditure is R82 million and expenditure is equivalent to 32%. Transfers and subsidies The expenditure for transfers and subsidies is R456 million and expenditure is equivalent to 53% of the allocated budget. With the exception of IDT and Parliamentary Village Management Board which have received full allocation, other entities have received 50% of the allocated budget Payments for Capital Assets Infrastructure expenditure for the end of September 2013 is R141 million and expenditure is equivalent to 21% of the allocation of R676 million. Machinery and equipment expenditure is R24 million and expenditure is equivalent to 36% of the allocated budget of R69 million.

Economic classification Expenditure per Economic classification: Programme 3 Economic classification Budget Allocation Exp. as at 30 September 2013 % Spent as at 30 September 2012 R'000   Compensation of employees 111 002 51 025 46% 49% Goods and services 171 762 48 105 28% Transfers and subsidies 1 662 583 860 028 52% 54% Machinery and equipment 2 622 515 20% 53% Total 1 947 969 959 673 51%

Notes to the expenditure Total expenditure for programme three is R960 million and against the budget of R1.9 billion which is 49% Current payments Compensation of employees for programme three is R51 million and expenditure is equivalent 46%. Expenditure for compensation of employees is within the guideline of 50%. Goods and services expenditure for the end of September is R48 million and expenditure is equivalent to 28% of the total allocation. Expenditure is below the guideline. Transfers and subsidies Transfers expenditures is R860 million against the budget of R1.6 billion which is 52%. Expenditure for transfers and subsidies is in line with the payment schedule. Payment for Capital Assets Machinery and equipment expenditure for Programme 3 is R514 000 and expenditure is equivalent to 20% of the allocated budget of R2.6 million.

Economic classification Summary Expenditure per Economic Classification: Programme 4 Economic classification Budget Allocation Exp. as at 30 September 2013 % Spent as at 30 September 2012 R'000   Compensation of employees 13 311 4 387 33% 23% Goods and services 25 509 4 952 19% 50% Transfers and subsidies 200 10 398 5213% 0% Machinery and equipment 125 22 17% 14% Total 39 182 19 786 41%

Notes to the expenditure Total expenditure for programme four is R20 million against the budget of R39 million which is equivalent to 50% of the allocated budget of R39 million. Current Payment Compensation of employees expenditure is R4.3 million and expenditure is equivalent to 33% of the total budget of R14 million. Goods and services expenditure for September is R4.9 million and expenditure 19% of the allocated budget. Transfers and subsidies Transfers and subsidies expenditure is R10 million and expenditure is equivalent to 5213% of the allocated budget of R200 000. The high expenditure relates to the transfer to Agrement SA and expenditure is classified as irregular expenditure as the budget is classified under goods and services. Payment for capital Assets Expenditure for machinery and equipment R21 000 and expenditure is equivalent to 17% of the allocated budget of R125 000.

Economic classification Summary Expenditure per Economic Classification: Programme 5 Economic classification Budget Allocation Exp. as at 30 September 2013 % Spent as at 30 September 2012 R'000   Goods and services 27 417 12 464 45% 156% Transfers and subsidies 23 261 17 555 75% 0% Total 50 678 30 019 59% 68%

Notes to the expenditure Total expenditure for programme five is R30 million against the budget of R50 million which is equivalent to 59%. Current Payment Goods and services expenditure for the end of September is R12 million and expenditure is equivalent to 45% of the allocated budget of R27 million. Expenditure for goods and services relates to State Functions. Transfers and subsidies Expenditure for transfers and subsidies is R17 million and expenditure relates to payment made to the Commonwealth Wargraves Commission. Transfers and subsides expenditure is equivalent to 75% of the allocation for transfers and subsidies.

3. Summary Expenditure per Branch

Compensation of Employees Budget and expenditure per branch Branches Compensation of Employees Goods & Services   Budget Exp. % Exp % Spent R’000 Spent Minister and Support 9 482 4 088 43% 12 000 2 987 25% Deputy Minister and Support 5 000 2 168 4 500 1 402 31% Asset Management 40 675 20 428 50% 5 582 2 504 45% EPWP 49 706 23 749 48% 159 793 45 668 29% Projects and Professional Services 66 200 32 859 12 700 5 353 42% Policy Regulation 8 462 4 376 52% 7 770 4 948 64% Inner City Regenerations 7 250 3 507 1 900 162 9% KAM and Prestige 30 400 9 992 33% 2 900 478 16% DG and Direct Reports 46 119 20 503 44% 11 800 5 399 46% Regional Co –Ordination and Direct Reports 11 700 6 681 57% 5 620 2 545 Corporate Services 88 836 44 681 100 850 41 458 41% Regions 1 011 330 494 435 49% 177 339 74 032 CFO 73 996 34 913 47% 26 700 7 099 27%

Budget and expenditure per branch Branches Household Machinery and Equip   Budget Exp. % Exp % Spent R’000 Spent Minister and Support 1 0% 1 450 45 3% Deputy Minister and Support 700 11 2% Asset Management 6 475 247 52% EPWP 150 40 27% 2 672 181 12% Projects and Professional Services 12 193 1608% 16 900 16 175 96% Policy Regulation 200 27 13% 300 22 8% Inner City Regeneration 104 103 99% 5 KAM and Prestige 55 100% 500 48 10% DG and Direct Reports 2 21 1057% 1 800 178 Regional Co –Ordination and Direct Report 4 163 33% Corporate Services 263 350 133% 31 170 7 347 24% Regions 3 250 1 977 61% 36 030 8 281 23% CFO 53 87 164% 2 900 183 6%

4. Summary Expenditure per Region

Compensation of Employees Budget and expenditure per Region Branches Compensation of Employees Goods & Services   Budget Exp. % Exp % Spent R’000 Spent Bloemfontein 87 299 42 123 48% 15 805 5 446 34% Cape Town 178 713 90 889 51% 34 347 16 917 49% Durban 127 284 62 405 21 105 10 437 Johannesburg 86 003 42 274 9 676 2 429 25% Kimberley 53 266 23 362 44% 10 624 3 701 35% Mmabatho 62,211 28 064 45% 10 444 5 443 52% Nelspriut 55 265 25 942 47% 10 895 4 009 37% Polokwane 71 598 34 274 10 534 4 617 Port Elizabeth 87 157 41 303 15 945 6 574 41% Pretoria 154 233 82 119 53% 28 422 10 885 38% Umthatha 48 301 21 676 9 542 3 570 TOTAL 1 011 330 494 435 177 339 74 032 42%

Budget and expenditure per Region Branches Household Machinery and Equip   Budget Exp. % Exp % Spent R’000 Spent Bloemfontein 150 243 162% 1 700 124 7% Cape Town 900 361 40% 11 150 1 234 11% Durban 500 252 50% 3 050 926 30% Johannesburg 300 187 62% 1 520 521 34% Kimberley 100 59 59% 1 300 309 24% Mmabatho 19 9% 1 290 274 21% Nelspriut 50 1 090 313 29% Polokwane 173 346% 1 100 129 12% Port Elizabeth 213 71% 1 650 529 32% Pretoria 800 468 11 090 3 058 28% Umthatha 0% 880 81% TOTAL 3 250 1 977 61% 36 030 8 281 23%

5. Earmarked Budget and Expenditure

Earmarked Budget and Expenditure   Budget 2013 % Spent as at 30 September 2013 R`000 %  CIDB 72 316 36 180 50% CBE 37 959 18 979 IDT (Bridging finance) 50 000 100% Agrement SA Board 10 398 Parliamentary Villages 8 198 Aug of PMTE 682 426 341 213 EPWP Incentives to Provinces 355 914 222 453 63% EPWP Incentives to Municipalities 610 674 244 271 40% EPWP (Non-State sector)Operation 438 281 230 098 53% EPWP Social Sector to Provinces 257 564 163 154

Earmarked Budget and Expenditure   Budget 2013 % Spent as at 30 September 2013 R`000 Office Accommodation 504 900 112 032 22% DPW Infrastructure 676 206 141 348 21% IDT Intermediaries 10 169 100% Audit Fees: Financial Accounting 40 260 41 835 104% Boundary Fencing 7 000 0% State Functions 27 132 12 463 46% CETA 2 750 Common Wealth War Grave 20 510 17 555 86%

PMTE: Financial Performance Report 2013/14

Financial Performance of the PMTE Budget Claimed to date Actual Received/Paid R’000 Revenue 7,605,471 3,656,104 3 215 745 State Accommodation Charges 3,671,713 1,871,886 1,851,282 Private Accommodation Charges 3,105,519 1,376,861 968,499 Management Fees (Municipal) 145 813 66 144 54 751 Augmentation 682,426 341,213 Expenditure 3,487,617 Cleaning & Gardening 81,138 Private Leases 1,674,024 Rehabilitation, Repair and Maintenance 1,382,597 Property Rates 349,129 Municipal Services (Arrears) 76 Other (Interest, etc.) 653 Deficit as at end of September 2013 (271 872) PMTE Bank Balance (Overdraft) (1 299 407),

Projected under / (over) Exp Expenditure Analysis of the PMTE   Allocation Expenditure % Exp % Exp 12/13 Projection Projected under / (over) Exp R'000 Total Expenditure 7,784,398 3,487,617 45% 47% 8,086,600 -302,203 Cleaning and Gardening 235,000 81,138 35% 32% 162,277 72,723 Leasing (Private owned) 3,105,519 1,674,024 54% 3,348,049 -242,530 Maintenance 3,682,500 1,382,597 38% 48% 3,812,983 -130,483 Planned 2,449,292 792,573 52% 2,397,780 51,513 Rehabilitation 380,708 140,097 37% 515,349 -134,641 Day-to-Day 852,500 449,927 53% 899,854 -47,354 Municipal Services arrears - 76 0% -76 Property Rates 761,379 349,129 46% 762,564 -1,185 Current 663,949 347,944 44% Arrears 97,430 1,185 1% 163% 98,615 Other 653 8% -653

Expenditure Analysis of the PMTE Expenditure trends are lower than the previous year although projections by the executing units indicate a possible over-expenditure (less than 1% if Leases are taken out of the equation). This will be managed towards year-end to ensure no over-expenditure takes place. Leasing expenditure is currently higher than the estimated budget for the year according to the information on our internal system. Regions have been requested to update the information to enable better forecasting. The estimated budget will be adjusted accordingly. Revenue = expenditure at the end of the financial year as invoices are issued and money claimed based on the actual expenditure Cleaning and Gardening are at 35% expenditure against budget. This is due to longer term contracts only being finalised recently. The expenditure is expected to increase in the latter part of the financial year.

Expenditure Analysis of the PMTE Expenditure against Planned Maintenance are lower than the guideline percentage of 50% Plans are in place to ensure that all funding is spent by the end of the financial year. Expenditure against Property Rates (46%) this is in line with the previous years trend. The average expenditure for this time of the financial year is 44%.

Accommodation Charges (State Owned) – Top 10 Clients Devolved Funds Invoiced Amount Received % Rec   Outstanding R'000 Defence 1,086,466 543,233 100% - SAPS 1,034,271 517,136 Correctional Services 874,151 437,076 Justice 312,642 156,321 Water Affairs 88,419 44,210 Health (Civitas) 36,029 18,015 50% 18,014 Agriculture, Forestry and Fisheries 65,285 32,643 Public Works 41,499 20,749 Labour 37,395 18,698 Home Affairs 31,826 15,913 Grand Total 3,571,954 1,822,008 1,803,994 99%

Accommodation Charges (State Owned) 99% of the amounts invoiced have already been received. (This represents 49% of the amount to be invoiced for the year). Second quarter invoices were issued during July and third quarter invoices will be issued during October. 55% of the outstanding debt relates to the current year and is between 30 and 60 days. Various client departments have had reductions in their baselines which will negatively affect the PMTE budget, as the devolved amounts have been reduced and therefore also the PMTE revenue stream. Clients will be requested to confirm the budget allocated to them. Details of these reductions per Client will be presented next month National Treasury has granted approval for the billing of state-owned accommodation charges on the basis of devolved budgets for the 2013/14 financial period. This will have a positive impact on revenue as clients were resistant to pay the invoices for fear of irregular expenditure without itemized billing.

Accommodation Charges (Private) – Top 10 Clients Invoiced Amount Received % Rec Outstanding R'000 SA Police Service 451 727 357 740 79 93 987 Defence 104 117 103 493 99 624 Statistics SA 79 540 50 675 64 28 865 Justice and Constitutional Development 75 829 17 988 23 57 841 Water Affairs 75 087 70 347 94 4 740 Home Affairs 74 538 71 271 96 3 266 Rural Development and Land Reform 61 693 59 184 2 508 Labour (Excl Seta's) 59 822 7 727 13 52 095 Public Works: NPA for Justice (Devolution) 38 805 - Correctional Services: Office Rentals 37 123 30 191 81 6 932 Grand Total 1 058 285 768 618 65% 289 667

Accommodation Charges (Private) Total Invoiced amount issued for current year is R 1.376 billion covering April 2013 to Aug 2013 only Sept 2013 Invoices were issued during Oct 2013, therefore do not form part of the issued invoices by end of Sept 2013 The total amount received is R 1.2 billion and 20% of this amount is towards the prior year balance 70% of current year invoices were paid at the end of Sept 2013 Only 20% of prior year balance was paid at the end of Sept 2013. Meetings will be scheduled with Clients to collect outstanding amounts based on the reconstructed balances Top ten clients represents 77% of all invoicing of the 52 clients.

Total Amount claimed (incl mgt fees) Municipal Services – Top 10 Clients Client Total Amount claimed (incl mgt fees) Amount Received Man fee received Outstanding R'000 South African Police Service 356 784 205 520 9 786 151 264 Department of Public Works 98 840 63 823 3 039 35 017 Justice and Constitutional Dev 106 161 83 845 3 992 22 316 Labour 16 138 12 479 594 3 659 Home Affairs 19 532 16 030 763 3 502 Water Affairs 13 143 10 223 486 2 920 Arts and Culture 15 333 12 943 616 2 390 Agriculture 12 631 5 877 279 6 754 Statistics SA 12 733 11 252 535 1 481 National Prosecuting Authority 4 453 3 297 157 1 156 Grand Total 655 752 425 295 20 252 230 459

Municipal Services All the claims for April to August have been issued. Total claims issued for the current year amount to R1.389 billion including management fees. The top 10 clients account for 96% of the claims issued. 65% of invoices issued to the top 10 clients have been recovered

PACE (Capital Infrastructure Budget) – All Clients Invoiced Amount Received % Rec Outstanding R'000 SA Police Services 288 035 251 044 87 36 991 Correctional Services 117 530 86 374 73 31 155 Public Works 138 296 122 635 89 15 660 Arts and Culture 50 476 40 638 81 9 838 Justice and Constitutional Dev 49 997 46 257 93 3 739 Home Affairs 13 887 13 120 94 767 Defence 3 900 2 259 58 1 640 Labour 1 701 441 26 1 260 Higher Education and Training 268 Environmental Affairs 164 Agriculture, Forestry and Fisheries 224 100 Rural Dev and Land Affairs 572 505 88 66 Grand Total 665 052 563 500 85% 101 553

PACE Recoveries Total Invoice amount issued for current year is R665 million covering April 2013 to Aug 2013 only (All 12 clients were taken into account) Sept 2013 Invoices were issued during Oct 2013 therefore do not form part of the issued invoices by end of Sept 2013 Total amount received is R837 million and 33% of it was paid towards prior year balances 85% of current year invoices were paid at the end Sept 2013

Other Recoverable* - All Clients Amount Claimed Amount received Outstanding Balance R'000 Defence 168 190 94 739 73 451 Government Printing 6 313 - Home Affairs 24 National Prosecuting Authority 2 076 Parliament 489 104 385 SA Police Services 814 509 305 Rural development 1 398 Statistics South Africa 4 Grand Total 179 308 97 428 81 880 * Infrastructure projects not included in Clients’ Capital budget allocation

Recoverable CA All the claims from April 2013 until August 2013 have been issued for all the clients Total invoices issued for the current year from April 2013 to August 2013 amount to R179 million R97 million has been received towards these invoices.

Debtors Age Analysis Current 30 Days >60 Days Total 2013/14 Previous Years Total R’000 Accommodation (State Owned) - 20,605 16,958 37,563 Accommodation (Private) 170,328 70,727 167,307 408,361 941,229 1,349,591 Municipal Services 295,127 132,445 116,779 544,351 266,666 811,017 PACE 82,944 3,609 15,000 101,553 -26,496 75,057 Recoverable: CA 31,950 16,920 -15,067 33,803 458,557 492,360 580,349 223,701 304,624 1,108,674 1,656,914 2,765,588 % 52% 20% 28%

DPW Capital Budget Allocation Expenditure % Exp R'000 Departmental   Allocation Expenditure % Exp R'000 Departmental 157 000 27 954 18% Accessibility 25 000 4 016 16% Dolomite Risk Management 116 000 10 587 9% Land ports of Entry (BCOCC) 202 206 88 824 44% Prestige 113 000 22 285 20% Inner City Regeneration 63 000 9 830 Total 676 206 163 495 24%

DPW Capital The 2013/2014 realigned allocations for Public Works were approved on 4 July 2013 A re-allocation was done during August to align the allocations with cash flows There was an amount of R123 million that could not be allocated to projects currently on the Implementation Plan and it was decided to investigate the possibility of acquiring Ocean View Terrace before the end of the financial year as it has been identified before, but funding was not available The overall expenditure for DPW is at 24%.  

Client Capital Budget Allocation Expenditure % Exp R'000   Allocation Expenditure % Exp R'000 Agriculture, Forestry and Fishing 6 994 224 3% Arts & Culture 264 220 65 532 25% Correctional Services 709 688 145 904 21% Defence and Military Veterans 27 210 5 702 Health 152 0% Higher Education 4 000 523 13% Home Affairs 63 349 16 718 26% Justice 271 732 63 309 23% Labour 3 416 1 972 58% Rural Development 7 653 624 8% SA Police Service 877 340 356 224 41% Total 2 235 754 656 732 29%

Client Capital Budget per Region   % of total budget Allocation Expenditure R'000 Head Office 4% 96 136 26 046 Bloemfontein 8% 182 646 26 092 Cape Town 12% 270 676 79 342 Durban 24% 530 541 193 770 Johannesburg 6% 134 728 71 727 Kimberley 2% 36 718 14 346 Mmbatho 7% 148 290 25 491 Nelspruit 5% 109 573 3 164 Polowane 122 543 24 258 Port Elizabeth 152 896 16 720 Pretoria 19% 433 275 175 114 Umtata 1% 17 733 662 Total 2 235 755 656 732

Thank You Department of Public Works (National ) Head Office: Public Works CGO Building Cnr Bosman and Madiba Pretoria Central Private Bag X65 Pretoria 0001 Website: http://www.publicworks.gov.za