BRIEFING THE PORTFOLIO COMMITTEE OF WATER AND SANITATION ON PROGRESS REPORT ON THE INCLUSION OF SANITATION COMPONENT Presented by: Ms Margaret-Ann Diedricks Director-General Date: 11 MARCH 2015 PRESENTATION TITLE Presented by: Name Surname Directorate Date

Presentations Outline Introduction NMOS Reporting Protocol Transferred Function Conversion of expenditure, assets and liabilities accounts Implementation and Report

Introduction New Cabinet was announced on 25 May 2014 and introduced a number of changes to the previous configuration of the national Executive and departments in terms of sections 91(2) and 93(1) of the Constitution. The Announcement had a direct impact on the structures in support of Ministers and Deputy Ministers: New departments were created, some with the transfer of functions between departments to give effect to government’s mandate for efficient service delivery. For the Department of Water Affairs, the functional content of the department changed to give effect to the new ministerial portfolio, mainly by transferring the sanitation function from the Department of Human Settlements (DHS), to form the Department of Water and Sanitation. The Department of Water and Sanitation, thus, incorporates the mandates of the Department of Water Affairs and the sanitation function transferred from the Department of Human Settlements. The transfer of the sanitation function from DHS was facilitated through the National Macro-Organisation of the State (NMOS) Programme, coordinated by the Department of Public Service and Administration (DPSA), National Treasury and led by the Presidency. 3

NMOS REPORTING PROTOCOL The DPSA was responsible for the project management (Secretariat) in support of the NMOS programme and channels reports to the National Steering Committee, via the DG:DPSA. The NMOS Project Team and Secretariat in consultation with the National Steering Committee, determined the schedule of meetings for purposes of enabling the NPT to provide progress reports to the National Steering Committee. NPT sequenced and scheduled own meetings and reporting arrangements to be aligned with those of the National Steering Committee (Reporting Meetings took place once every second Friday). A generic project plan and template for reporting was developed. DPT sequenced and schedule own meetings and reporting arrangements to be aligned with those of the NPT. 4

TRANSFERRED SANITATION FUNCTION Overview of Sanitation Programmes The function is performed at a Chief Directorate level named, National Sanitation Programme. The function is being executed in line with the following key functional outputs: Implementation of the Rural Household Infrastructure Grant (RHIG). The Implementation of Bucket Eradication Programme (BEP) Supporting Municipalities on the implementation of sanitation programmes funded by Municipal Infrastructure Grant Supporting municipalities on Health and Hygiene advocacy Mainstreaming of sanitation in IDPs including councillor induction The White Paper on Sanitation developed, DWS will handle approval process MDG target on sanitation met, RSA need to meet country target: Universal access 5

TRANSFERRED SANITATION FUNCTION (Cont) 3.2 Functional Configuration Directorate: Sanitation Admin & Coordination Directorate: Sanitation Programme Support Directorate: Sanitation Inter dept Coordination Sanitation Programme: Regional operations CD: National Sanitation Programme The Sanitation function comprises of 99 posts, and was transferred as is into the Department. Function is performed at both National (Four Directorates) and Provincial levels (Across all nine Provinces at Sub-Directorate level). The Chief Director Report to the Director-General 6

TRANSFERRED SANITATION FUNCTION (Cont) Transferred Budget allocation (Operational Budget) Budget item 2014/15 Budget Compensation of Employees 38 297 Goods & Services 52 505 Capital Assets 684 TOTAL 91 487 Transferred Budget allocation (Programmes) PROGRAMME 2014 / 2015 2015 / 2016 Bucket Eradication Programme (BEP) R899 177 000 R975 399 000 Rural Household Infrastructure Grant (RHIG) R 113 124 000 R 118 328 000

8 Milestone/Work Area Report Establishment of the DPT Establishment of the DPT Governance structure The DPT was established 09 June 2014. Six work streams were also established, with membership from both Departments . Establishment of Work Streams, activity plans and reporting. Verification of Budget and Financial Assets Analyze budget, asset register Budget to be transferred determined and budget structure amended. Assets to be transferred determined, however challenges have been experienced relating to asset earmarked for transfer and as such DHS is not in a position yet to hand over the assets. Some of the challenges are: - Movable assets earmarked for transfer cannot be verified - Prior year audit findings related to BEP/RHIG assets that require management to resolve as they would have a negative impact on the audit outcomes of DWS (Refer to appendix for detail). - Sanitation programme with assistance of Finance has already started a process to address the challenges detailed in the appendix. 8

NMOS PROGRAMME EMPLIMENTATION AND REPORT Milestone/Work Area Report Assessment of Legal and Policy Matters Conduct an audit of all legal instruments guiding service delivery in the Department (legislation, contracts, service level agreements, memorandums of understanding, etc.) List of all contracts relating to sanitation services has been compiled and due diligence is being performed. The draft transfer agreement completed 9

NMOS PROGRAMME TIMELINES AND REPORT (Cont…) Milestone/Work Area Report Posts and employee audit and organizational design Analysis of the function, organizational design, posts and staff audit, transfer of posts and employees The analysis of the function and the designing of the organisational structure was completed. The identification of posts to be transferred had been done, with 99 posts related to the Sanitation function transferred from DHS. The Audit of personnel files completed. MPSA determination sought and issued. Consultation with employees and induction workshops held. Employees transferred on 1 November 2014 NMOS Closeout Report Compile and submit implementation closeout report to DPSA Closeout Report submitted to the DPSA 10

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