PRESENTATION TO THE PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES SERVICE LEVEL AGREEMENT 02 June 2010

BACKGROUND The Government Immovable Asset Management Act (Act 19 of 2007) (GIAMA) calls for more efficient and effective use of immovable assets by government and places an obligation on accounting officers to prepare Immovable Asset Management Plans to ensure prudent management of such assets. User must prepare a User Asset Management Plan (UAMP) in relation to immovable assets which aligns to the strategic plans of the user department.

BACKGROUND (Cont.) GIAMA regulates the roles & responsibilities of Users and Custodian to ensure :- –Accountable, fair and transparent management of immovable assets, –Effective, efficient and economic use of immovable assets, –Reduced overall cost of service delivery, and –Reduced demand for new immovable assets,

SERVICE LEVEL AGREEMENT (SLA) The signing of the SLA between User and Custodian of immovable government assets seeks to contribute towards the following:- –It governs the relationship between DPW & DCS on provision of immovable assets through immovable asset life- cycle management. –It provides the custodian and the User with a management tool that can be utilized as a basis for asset management performance improvement. –It ensures that immovable asset management services are delivered at quality/quantity that is required to discharge mandates efficiency and effectively within cost norm, budget and time whilst realizing value for money.

ROLES & RESPONSIBILITIES USER Carry out strategic planning for its accommodation related immovable asset requirements aligned to UAMP. Compile and submit UAMP annually as required by PFMA & GIAMA assisted by inputs from NDPW, to NT. Budget annually over MTEF for:- –New acquisitions (including building, buying & leasing) –Capital upgrades and refurbishment –Existing and new leases –Accommodation charges –Municipal services –Day to day maintenance projects CUSTODIAN Assist User with Strategic Planning. Provide User with template information to support the compilation of the UAMP including high level cost analysis. Manage all pre-design and design processes related to acquisitions. DPW to manage payments on a cost recovery basis, at a 5 % management fee.

ROLES & RESPONSIBILITIES USER Approve the Annual Implementation Plan Inform DPW of disposals of state and leased accommodation. CUSTODIAN Execute the approved Implementation programme and report monthly progress. Institute corrective actions to address under performance. Approve and implement all disposals.

SERVICE DELIVERY STANDARDS (SDS) Developed to ensure that client expectations are met in an achievable manner. Aligned to Asset life cycle management. Articulate the standards for service and time frames for delivery. Will be reviewed annually for improvements.

INTERVENTION STRATEGIES To support institutional arrangements structures will be created to address planning, budgeting and project implementation. An initiative to institute letting agreements for state property is currently being compiled by DPW for rollout in the new financial year. The lack of comprehensive condition surveys of the state’s property portfolio – maintenance strategies such as Service Contracts to be implemented.

WAY FORWARD It is envisaged that the SLA will be signed before end of June Agreed that the review for improvements is imperative.