1. FREE STATE DEPARTMENT OF HUMAN SETTLEMENTS 2017/18 FINANCIAL AND NON-FINANCIAL PERFORMANCE REPORT PORTFOLIO COMMITTEE N MOKHESI

2. TABLE OF CONTENTS Expenditure as at 28 February 2018
Expenditure per Milestone
Expenditure Patterns
Projected expenditure
Non-Financial Performance
Revitalization of Mining Towns
Military Veterans
Upgrading of Informal Settlements
Title Deeds Recovery plan
MTSF Performance Summary
Summary of 2018/19 Business Plan

3. 2017/18 HUMAN SETTLEMENTS DEVELOPMENT GRANT EXPENDITURE PERFORMANCE

4. HUMAN SETTLEMENT DEVELOPMENT GRANT
DESCRIPTION
MAIN ALLOCATED BUDGET
R '000
ADJUSTED BUDGET
EXPENDITURE AS AT 28 FEB 2018
AVAILABLE BUDGET
AS AT
AVAILABLE BUDGET AS AT 28 FEB 2018
% BUDDGET SPEND
28 FEB 2018
Financial Interventions
95 201
93 551
64 961
28 590
69%
Incremental Intervention
86%
Social and Rental Intervention
99 472
14 213
87%
Rural Housing
21 259
14 244
8 372
5 872
59%
Provincial Specific Programmes
85 239
98 734
25 076
73 658
25%
TOTAL
79%

5. EXPENDITURE PER MILESTONE
(2 095) R
(1 019) R
(1 072)
P5.3 Completions R
P5.2 Wall plate
Other R
Professional Fees: R
CRU: R
NHBRC: R
Retention: R
P5.1 Foundations

6. CASH FLOW AND EXPENDITURE PATTERNS
Description
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Total
Monthly Transfers
92 803
81 302
69 802
Expenditure
896
58 991
33 091
44 432
53 393
42 543
Surplus/(Deficit)
48 706
33 132
24 791
34 251 6

7. ANALYSIS OF EXPENDITURE AS AT 16 MARCH 2018

8. PROJECTED EXPENDITURE

9. PLANNED EXPENDITURE - COMMITMENTS
DESCRIPTION
PROGRAMME
AMOUNT
Available Funds R
Planned Expenditure:
Housing Development Agency (HDA)
Catalytic Project:
Baken Park Ext 6 & 7
Sasolburg Properties
Estoire R
Title Deeds Exceptions R
FLISP R
Infrastructure
Serviced Sites:
Caleb Motshabi – sites R
Breaking New Grounds (BNGs)
Units:
660 Competions R
Surplus / Deficit R0

10. 2017/18 HUMAN SETTLEMENTS DEVELOPMENT GRANT NON-FINANCIAL PERFORMANCE

11. NON-FINANCIAL PERFORMANCE
Programmes
Planned Target
01 Apr to 31 Mar 2018
Actual Performance
Variance
(under achievement must reflect a negative figure)
Sites
Units
Other
UISP
6 514
1 859
3 347
788
-2 807
-1 071
New Individual units*
334
1 843
 1 119
1 375
-468
Social and Rental Housing
411
495 
CRU
812  0
FLISP
300 10
-290
Other programmes * (not MTSF)
170
141
-29
Military Veterans
199
-199
Title Deeds: Pre 1994
780
365
-415
Title Deeds: Post 1994
36139
3009
-33130
Title Deeds: New development
706
Total
6 848
5 594
36 919
4 466
3 020
3 374
-1 351

12. PROVINCIAL DELIVERY Foundations / Slabs completed 269 8 122 493
Levels of Construction
Number of structures
Amount
Foundations / Slabs completed
269
Wall plate
336
Finishes
660
Total
1 265

13. MANGAUNG Levels of Construction Number of structures Amount
Foundations / Slabs completed 6
Wall plate
Finishes
104
Total
116

14. FEZILE DABI Levels of Construction Number of structures Amount
Foundations / Slabs completed 24
Wall plate 36
Finishes 81
Total
141

15. THABO MOFUTSANYANA Levels of Construction Number of structures Amount
Foundations / Slabs completed 65
Wall plate 68
Finishes
160
Total
293

16. LEJWELEPUTSWA Levels of Construction Number of structures Amount
Foundations / Slabs completed
135
Wall plate
203
Finishes
189
Total
527

17. XHARIEP Levels of Construction Number of structures Amount
Foundations / Slabs completed 39
Wall plate 23
Finishes
126
Total
188

18. REVITILIZATION OF MINING TOWNS

19. EXECUTIVE SUMMARY Total Planned Sites Budget for Sites
PROGRAMMES FOR REVITALISATION OF DISTRESSED MINING COMMUNITIES
Total Planned Sites
Budget for Sites
Total Planned Units
Budget for Units
Total Budget Allocation per programme
MATJHABENG LOCAL MUNICIPALITY
Incremental
1 300 R
324 R R
Social & Rental R
Title Deeds Backlogs
(2 497) R
TOTAL R R

20. REVITALISATION OF DISTRESSED MINING COMMUNITIES
PROJECT NAME
(for example: Matjhabeng Municipality)
SUBSIDY INSTRUMENT/ PROJECT TYPE
(RDP/ SOCIAL/ FLISP)
DELIVERABLES
FINANCIALS
Planned Target
(sites &units)
Actual delivered
(site & units)
Budget Allocation
Actual Expenditure
MATJHABENG
UISP
1 401
119 R R
New Individual Units
178 R
CRU R
Title Deeds Current
1 579
686
(R )
(R )
Title Deeds Backlog Post 94
4 692
906 R R
Total :
7 850
1 711

21. Mining Town Interventions
Spatial Transformation Plan: strategies to redress past spatial disparities ;
Infrastructure Technical Assessment: to establish infrastructure capacity and determine financial interventions:
21 Household enumeration/settlement profiling conducted in Matjhabeng Local Municipality with the aim to provide the status quo and situation for each informal settlement;
15 Resettlement Plans: proposals on strategies that can be employed to upgrade informal settlements;
Strategy on Illegal Land Occupation: plans Municipalities can employ to prevent illegal land occupation;
Settlement Level Plans: specific plans to an informal settlement to assist with implementation of upgrading.

22. MILITARY VETERANS

23. MILITARY VETERANS Project Name/Description
Total Preliminary Target Units
Actual Performance
(1April 2017 – to date)
Annual Budget
Total Expenditure
Challenges
Welkom 62 Military Veterans 62 R
10 foundation casted
Only 28 approved beneficiaries
Theunissen 2 Military Veterans 2 R
2 units completed
Dispute between contractor and subcontractor
Sasolburg 8 Military Veterans 8 R
Houses have been handed over to beneficiaries
Military Veterans 2015/16 Military Veterans-Parys: E'Tsho /17 6 R
6 Units completed
No services; water; sanitation & Electricity
Service Provider has been appointed to service the site with completion expected by June 2018
Military Veterans 2015/16 Military Veterans Viljoenskroon: Etsho /16 1 R
Military Veterans 2015/16 Military Veterans- Kroonstad: E'Tsho /17 9 R
6 units completed without services
Septic tanks installed as a temporary measure
Ladybrand 9 Military Veterans R
Beneficiary issues not finalized
Boshoff 3 Military Veterans 3 R
Lack of serviced sites
Bloemfontein IRDP Hillside View /Kentha Developers(2016/17) 50 Military Veterans 50 R
44 Foundation casted;
Construction of wall plates halted due to no electricty in that area. Risk of vandalism
Bethlehem Voggelfontein Unital Holdings Military Veterans R
No approved beneficiaries
Total
199 R

24. REPRIOTIZED FUNDING CATALYTIC PROJECTS

25. MATHJABENG LOCAL MUNICIPALITY
REPRIOTIZED FUNDING
Municipality
Proj No
Name
Target Sites
Target Units
Budget
Expenditure
Over/Under Expenditure
Reprioritised Amount
Revised Budget
Comments
MATHJABENG LOCAL MUNICIPALITY
F /1
Water and Sewer for 873 sites Welkom, Thabong Ext 27 (Phokeng) R
R ,21 R
R ,00 R
F /1
Matjhabeng: Water And Sewer Kutlwanong EXT (k10) R
R ,04 R
R ,00 R
F /1
Welkom Hani Park (thabong Ext 18 )
600 R R R R
F /1
Welkom Thabong Ext 11( Dichocolateng) R
R ,61 R R R

26. REPRIOTIZED FUNDING Municipality Proj No Name Target Sites
Target Units
Budget
Expenditure
Over/Under Expenditure
Reprioritised Amount
Revised Budget
Comments
NALA LOCAL MUNICIPALITY
F /1
Infrastructure Monyakeng Wesselsbron: Sedtrade Internal Sewer and Water R R R R
MANGAUNG METRO MUNICIPALITY
F /1
Estoire Airport Node Catalytic Project Township Establishment
R 0
R 0,00 R R
Catalytic Project. To unlock implementation as one of the Government led projects.
METSIMAHOLO LOCAL MUNICIPALITY
F /1
Land Acquisition 2017 (HDA) R R
Negotiation with seller deadlocked
F /1
Sasolburg Properties - Township Establishment R
R ,00 R
R ,79 R
Catalytic Project. To fast-track planning phase
DIHLABENG LOCAL MUNICIPALITY
F /1
Bethlehem: Bakenpark Ext 6 & 7 Water And Sewer
190 R
R ,00 R
R ,00 R
Catalytic Project. To maximise delivery

27. UPGRADING OF INFORMAL SETTLEMENTS

28. INFORMAL SETTLEMENTS INTERVENTION
All 20 Municipalities are receiving NUSP support
Free State recorded a total of 143 informal settlements, 5 of which have been upgraded already. The current number of informal settlements is 138;
Installation of basic engineering services is currently underway in 14 Informal Settlements;

29. PLANNIG WORK COMPLETED ON INFORMAL SETTLEMENTS
DISTRICT
TOTAL
Lejweleputswa
6 480
Fezile Dabi
6 078
Thabo Mofutsanyane
2 429
Xhariep
2 142
17 129

30. TITLE DEEDS RECOVERY PLAN - EXCEPTIONS

31. TITLE DEEDS – MTEF TARGETS
PROVINCE
TOTAL BACKLOG
Previously Registered
Rural Areas
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
PRE 1994
780
693
595
521
393
800
POST 1994
62 472
7 869
3 804
461
692
3 769
3 913
15 035
15 000
4 000
TOTAL
63 252
1 154
1 287
4 290
4 386
15 835
15 800
4 800 31

32. TITLE DEEDS – MTEF DELIVERY TO DATE
PROVINCE
TOTAL BACKLOG
Previously Registered
Rural Areas
2014/15
2015/16
2016/17
2017/18
TOTAL DELIVERY TO DATE
TOTAL DEFICIT
Target
Output
(up to Feb2017)
PRE 1994
780
693
900
595
521
393
2 202
-1 422
POST 1994
62 472
7 869
3 804
461
5000
692
28 694
3 769
36 139
3913
20 508
41 964
TOTAL
63 252
1 154
5 900
1 287
29 474
4 290
36 919
4386
22 710
40 462

33. The result of this exercise revealed the following exceptions:
In responding to the exceptions identified by conveyancers, the department instructed Lexus Nexus to conduct deeds searches on the 2017/2018 backlog.
The result of this exercise revealed the following exceptions: 33

34. INSTRUCTIONS WITH EXCEPTIONS

35. EXCEPTIONS
In eradicating these exceptions, the department undertakes to implement the following remedial actions with financial implications
Category
Remedial Actions
Allocated Hrs
Hourly
Rate
Total
Exceptions / miscellaneous
Dispute Resolution
1 511 8
800
R ,00
Exception - Already transferred  to this beneficiary
Application for lost title deed copy
7 869 1
1750
R ,00
Exception - Rural Area
3 804
R ,00
Exception - Site transferred in someone else's name
2 480
R ,00
Exception - Township not registered
Factored in 2018 / 2019 financial year
881
9000
R 0,00
Exception - Township Register not opened
431
Exception - Transferred in spouse's name 65
R ,00
Total Exceptions
 17 041
R ,00 35

36. EXCEPTIONS
TO ARRIVE AT THE COST IMPLICATIONS, THE FOLLOWING CONSIDERATIONS WERE TAKEN INTO ACCOUNT
To determine the dispute resolution rate, the department used the following document: Guidelines for taxing committee for the assessment of non-litigious fees (Free State Law Society Rules). Contained in it the following hourly tariffs are stipulated
Attorneys with 0-5 years’ experience: R400.00/hour
Attorneys with 5-10 years’ experience: R800.00/hour
Attorneys with more than 10 years’ experience: R1200/hour
The department resolved to use the midpoint tariff.
With a view to afford the conveyancing firm a reasonable and adequate remuneration for the services rendered, the department resolved to allocate 8 hours for each dispute resolution. 36

37. REMEDIAL ACTIONS
ADDITIONAL MEASURES UNDERTAKEN TO COMPREHENSIVELY FAST TRACK DEEDS DELIVERY OUTSIDE EXCEPTIONS, INCLUDE:
Workload allocation to conveyancers has already been completed.
Appoint dedicated Project Manager to speed up municipal signing of deeds documents and delivery of registered title deeds at Deeds office.
Removal of non-performing conveyancers from the allocation of 2018/19 and re-allocate it to best performers.
Capitalise on the commitment from Deeds Office that target number of days for registration of RDP houses will be 5 days from the date of lodgement.
Expansion of conveyancer panel to introduce new conveyancers
Key control measures in managing the approved conveyancer payment process by HDA are captured in the provided business process. 37

38. BUSINESS PROCESS - HDA
Redirection of Unspent TRP Funds to Housing Development Agency (HDA)
Role Players
National HS: National Department of Human Settlement.
FS-HS: The Free State Department of Human Settlements, responsible for end-to-end management of program delivery.
Conveyancer: An approved conveyancing firm on contracted by the FS-HS based on its internal risk mitigating strategy.
HDA: Housing Development Agency is a partner tasked with disbursing funds / payments to FS-HS approved conveyancing firms.
LSSA: The Law Society of South Africa is a statutory body in terms of Attorneys Act, which is a regulatory body for attorneys
FS-HS-IA: Free State Department of Human Settlement - Internal Audit, responsible for auditing the adherence to the approved business process
FS-HS-Risk Free State Department of Human Settlement – Risk, responsible for risk management inclusive of mitigation.
BAS: Basic Accounting System used to make payments and transfers. 38

39. MTSF SUMMARY 39 MTSF TARGET 2019 Cumulative Delivery:
1 April 2014 – 30 December 2017
Deficit
Planned sites Final 2018/19 Business Plan
Planned units Final 2018/19 Business Plan
Total Budget 2018/19
Deficit after 2018/19 planned targets
Programme
2019 Prov. MTSF target
UISP (HSDG)
(Inc. MMM)
49 380
21 378
12 834 - R
New Indiv Units
32 078
16 509
3 568 R
CRU
600
977
+377
812 R
+1 189
FLISP
4 097 91
-4 006
225 R
-3 781
TOTAL
86 155
38 955
4 605 R
Military Veterans
670 30
640
107 R
533
Hectares of Land Acquired
1 000 39

40. 2018/19 BUSINESS PLAN

41. INFRASTRUCTURE BUDGET SUMMARY
National HSDG allocation = R
Prov. Mil Vets Top up funding = R
Provincial funding (Two – Roomed & Incompletes) = R
Expanded Public Works Programme (EPWP) = R
THE OVERALL BUDGET FOR THE PROVINCE IS = R
Sites (12 834) = R
Units(4 605) = R
Title Deeds: Current (2 950) = R
Title Deeds: Backlog (15 835) = R

42. GEOGRAPHIC SPLIT TOTAL REGIONAL ALLOCATIONS Units = 4 605
Sites = 3 668
Deeds = 764
Budget = R
Units = 591
Sites = 5 886
Deeds = 795
Budget = R
Units = 1 190
Sites = 2 420
Deeds = 741
Budget= R
Units = 487
Sites = 0
Deeds =50
Budget= R
Units = 1587
Sites = 860
Deeds = 600
Budget = R
TOTAL REGIONAL ALLOCATIONS
Units = 4 605
Sites =
Deeds = 2 923
Budget = R 42

43. INFRASTRUCTURE BUDGET SUMMARY

44. PROVINCIAL SUMMARY OF PROJECT READINESS

45. % of Total budget allocation % of Total budget allocation
LEGEND
Project Ready for construction
/Contractor & PRT on Site
Projects require SCM, Process dealing with contracts and IPW’s
Projects Under Planning
Provincial
Sites
Units
Budget
% of Total budget allocation
118
13813
2385
66% 41
1492
1358
34% %
Total
15305
3743
100%
Catalytic Projects
Sites
Units
Budget
% of Total budget allocation 1 
860 - R
50% 1
186 R
15%  1 R
35%
Total R
100% 45

46. THANK YOU