LIMPOPO DEPARTMENT OF PUBLIC WORKS PRESENTS THE DEVOLUTION OF PROPERTY RATE FUND GRANT

PRESENTATION OUTLINE 1. INTRODUCTION DATA ON TRENDS IN ALLOCATION, TRANSFERS AND ACTUAL EXPENDITURE ON CONDITIONAL GRANTS 3. BRIEF ASSESSMENT ON DEPARTMENT’S MONITORING CAPACITY 4. CHALLENGES AND WAY FORWARD

1. INTRODUCTION The National Department of Public Works has been paying for some of the Rates and Taxes to various municipalities on immovable properties belonging to the Provincial Government, the bulk of which are schools. The rest of the Provincial immovable properties, Rates and Taxes payments were paid in a scattered manner amongst Provincial Departments of Limpopo Government according to land use.

1. INTRODUCTION The 2008/09 budget and the MTEF period has an allocation of R12,294 000,00 as conditional grants to pay for municipal Rates & Taxes for function that were devolved from NDPW. A list with properties has been provided from NDPW.

BACKGROUND The Limpopo Department of Public Works engaged the National Department of Public Works and established that: Only12 Municipalities out of 30 are currently billing for Rates and Taxes in the Province. NDPW is using PMIS system & BAS. PDPW adopted iE-Works system for the asset register and Municipal Rates and Taxes Module

DATA TRENDS IN ALLOCTION The devolved function is on its first year of implementation and trends cannot be formed on limited data. The collection of data for the coming years will afford PDPW mechanisms to extrapolate trends to assist in the budgetary process

TRANSFER AND EXPENDITURE iE-Works has been adopted by PDPW. IE-Works Programme has been equipped with the necessary data to enable operators to pay the bills from municipalities. Training was provided to officials responsible for payments to ensure that proper payments are processed as submitted by various municipalities. Users have been allocated user id’s and passwords for the iE-Works system Reports to be generated from the system and verified on BAS

TRANSFER AND EXPENDITURE (Contd.) Transfer of Funds from National Treasury, to the Provincial Government of Limpopo Department of Public Works for the amount of R12,2m will be disbursed in tranches as follows: August 2008 = 25% of the Budget September 2008 = 25% of the Budget October 2008 = 25% of the Budget February 2009 = 25% of the Budget This was confirmed by the GIAMA Technical Committee Workshop held on 21 August 2008 in Durban: Expenditure for Quarter 1 is Nil, municipal valuation roll commensurate with their financial year (1st July)

DEPARTMENT’S MONITORING CAPACITY The Department is presently capturing details of properties that have been devolved in the iE-Works. This will ensure Conditional Grants are utilised for devolved functions in terms of the submitted lists

CHALLENGES AND WAY FORWARD Municipalities were informed that bills for devolved properties to be directed to the Department Only 12 municipalities had been billing the National Department of Public Works, the rest have not come up with bills Other municipalities will be called to a workshop to discuss the billing issue so that they can comply with the requirement The dual system is a source of confusion to municipalities

LIMPOPO DEPARTMENT OF PUBLIC WORKS PRESENTS INFRASTRUCTURE GRANT

PRESENTATION OUTLINE 1. INTRODUCTION DATA ON TRENDS IN ALLOCATION, TRANSFERS AND ACTUAL EXPENDITURE ON CONDITIONAL GRANTS 3. BRIEF ASSESSMENT ON DEPARTMENT’S MONITORING CAPACITY 4. CHALLENGES AND WAY FORWARD

INTRODUCTION CONTD In terms of its legislative mandate, the Department of Public Works is mainly tasked with the provision and management of government land and buildings in the Province, as well as the management of poverty alleviation programmes. This includes amongst others, the following: Management of the asset life cycle of immovable assets (both land and buildings) of the Provincial Government Provide expert advise to all Provincial Departments on immovable assets Facilitate and coordinate the provision of building infrastructure for client Departments Coordination and implementation of Expended Public Works programme. 4/11/2019

INTRODUCTION CONTD The Department seeks to position itself as a service provider to other Departments, rendering a service of excellence and relate directly to the PGDS in terms of planning, development and management of provincial infrastructure. However, the Department experiences a serious constrain in terms of financial and human resources to fulfil its mandate.   Current resources are under severe stress as a result of the additional work assigned to the Department, and the Department regards the Infrastructure Delivery Improvement Programme (IDIP) as a vehicle to resolve the challenges through the implementation of change processes invented by the IDIP intervention. 4/11/2019

BACKGROUND The Limpopo Provincial Government instructed departments to plan ahead and submit IPMP’s to DPW annually in June for capital projects of the following year. The arrangement affords the Department with time to properly plan and finalise the procurement process before the beginning of the financial year. Following is a summary of projects implemented by Public Works during 08/09 financial year;

BACKGROUND 239 Capital projects for Education 08/09 Infrastructure Programme were planned in time and the procurement process was completed in Jan/Feb 2008. Payment for claims were already received in April 2008 In quarter 1, physical progress on 08/09 schools was 43% on average Claims certified for payment amounted to R70,3 million in quarter 1

BACKGROUND Capital projects for Health are mainly multi-year in nature and planning & design phases are more involved. Physical progress on Health projects at the end of 1st quarter were; Construction/upgrade of clinics - 74%, (R9,67m) Mortuaries -77% (R6,05m) Hospital revitalisation programme (6 hospitals) - 49% (R20,38m) Staff accommodation - 56% (R1,8m) EMS – 73% (R7,1m) One stop centres - 60%, (R7,01M) CBR – 20% (R1,56M) TOTAL 1ST Quarter – R53,57m

BACKGROUND Capital projects for other departments were on average 80% complete in the 1st quarter (R1,56m) Departmental capital projects were on average 10% complete (R5,1mil)

DATA TRENDS IN ALLOCTION Conditional Grants for infrastructure in the Departments of Education and Health & Social Development, has been showing an upward trend in terms of annual allocations. On average, there is an increase of 23% in the allocation of 2008/09 compared to 2007/08.

TRANSFER AND EXPENDITURE No funds are transferred between departments Public Works manage the implementation of projects, monitor progress and recommend progress payments to Service Providers Client Departments do the payments to Service Providers on recommendation of Public Works. Public Works reports monthly to client departments on financial and physical progress on all implemented projects.

DEPARTMENT’S MONITORING CAPACITY The TRACKER system was introduced under the IDIP programme to assist with the monitoring of the delivery of capital projects This system is based on a spreadsheet which in itself has limitations in terms of reporting capabilities Provincial Treasury is investigating the introduction of a Project Portfolio Management system on Provincial level to improve data storage, accessibility of information and reporting.

THE IDIP INTERVENTION The Infrastructure Delivery Programme (IDIP) was introduced and sponsored by National Treasury in an attempt to improve Infrastructure delivery in the country. Limpopo Departments of Education, Health and Public Works agreed to implement IDIP in the respective Departments by signing the business cases in the beginning of 2006. The implementation started in Public Works and Education in November 2006 with the appointment of Technical Assistants (T/A’s) in both Departments, followed by the appointment of a T/A in Health in November 2007. The purpose of the T/A’s is to assist the Departments with the implementation of the programme. 4/11/2019

IDIP INTERVENTION CONTD. The IDIP intervention, which was planned as a three year intervention, has achieved the following since inception: Establishment of an IDIP Governance structure in the Province Assisted Education and Health in preparing 10 year Infrastructure Plans (IP) Developed 3 year IPMP’s from the IP’s Developed implementation plans (IPIP’s) for Public Works Designed an improved Infrastructure Delivery Model to deal with infrastructure delivery in an effective and professional way Developed a capacitation plan from the delivery model, which had the following outcomes: 4/11/2019

IDIP INTERVENTION CONTD. Identification of gaps in the current capacity in the Department Procurement of professional skills from outside to fill the gaps and to enhance the current in-house capacity, funded by the 4% DORA allowance (approval of funding by Provincial Treasury awaited) Restructuring of the Project Management Unit to effectively manage infrastructure programmes Capacitation of current staff through training programmes in project management skills Recruitment of suitably qualified professionals as permanent staff members Exit strategy for outsourced capacity after skills transfer. 4/11/2019

CHALLENGES AND WAY FORWARD Obtaining of funds from Provincial Treasury to procure services of Build Environment Professionals Implementation of the turn-around strategy Building of permanent capacity in the Department Implement best practice methodologies Visible improved service to client Departments before the end of current financial year.