1. Departmental Performance Report January – March 2017 Quarter 4 Mr. M
Departmental Performance Report January – March 2017 Quarter 4 Mr. M. Tshangana Director-General

2. Overview Summary - Under-Performing Targets Progress for Quarter 4
Partially achieved targets
Financials
Recommendations

3. Summary and Mitigation of Under-Performing Targets
Eradication of Title Deeds Programme
The management of Title Deeds restoration project has been institutionalized
Project Managers being appointed to support National intervention measures
Ministerial Task Team has been activated to report and intervene in all Provinces
Min-Mec resolution to support the National Minister intervention actions
Upgrading of informal settlements
Provincial Steercoms activated in all nine provinces
National Upgrading Support Programme capacity support activated
Improved HSDG and USDG programme and project alignment which will result in increased numbers of settlements and households to be targeted.

4. Summary and Mitigation of Under-Performing Targets
Slow Progress on the Implementation of FLISP
The FLiSP programme has not been prioritised by the Provinces and thus the Department will undertake a process to centralize the management and allocation of the FLiSP.
Only two Provinces have undertaken a process to upscale and these include KZN and Western Cape, whilst Gauteng is in the process of finalising the arrangements, with the NHFC and its relevant implementing agents.
Slow Progress in Housing the Military Veterans
The Department has experienced delays in the verification process in respect of qualifying military veterans, which now has been resolved with the Department of Military Veterans.
The performance of the programme it is projected will improve during the 2017/18 financial year.

5. Summary and Mitigation of Under-Performing Targets
Slow Performance in the Social and Rental Housing Sector
Progress has improved compared to 2015/2016
The SHRA governance and programme performance improvement plan is yielding results
The programme and project pipeline has been streamlined with available funding
Ministerial consideration is being given to the readjustment of the subsidy bands as well as RCG quantum
Process of rezoning the land acquired with no development rights
The National Joint Coordinating Committee on Land is now active with Transport, CoGTA DPE, RD and LR as well as Public Works being members.
There is more improved monitoring on release of state land and use thereof for human settlements
The HDA is tasked and capacitated to manage and ensure the rezoning target is achieved.

6. Governance The improvement plan for MPAT is being implemented
Required Statutory Prescripts have been complied with and include:
The improvement plan for MPAT is being implemented
Financial Statements were prepared and submitted on time
Reporting to National Treasury on payments within 30 days in terms of section 44 of the PFMA
Submission of the Estimates of National Expenditure database and chapter in terms of section 26 and 27 of the PFMA
The approved Human Resource Plan is being implemented, this includes the commencement of the process of filling of vacant positions

7. Legislation Legislative Programme Developed and activated including:
Home Loan and Mortgage Disclosure Bill published for public comment
Prevention of Illegal Eviction Bill in process of Sector Consultation
Housing Consumer Protection Bill in process of Sector Consultation
Draft Human Settlements Development Bank Bill being finalised
Property Practitioners Bill published for public comment
A departmental communication programme that profiles the work of the department and that of the sector has implemented

8. Establishment of the Human Settlements Bank
The reconstitution of the Board of the NHFC has been approved
This allows for improved board to be representative of RHLF, NURCHA and NHFC
 The operational integration of the three entities has commenced.
All the required legal, governance and regulatory approvals are in place for the operational integration
A draft Bill for the establishment of Human Settlements Development Bank is being finalised for submission to Cabinet." 

9. Policy and Support
Provinces have been supported with the approved PHP Policy guidelines to upscale the programme
A draft White Paper for Human Settlements is being finalised
A revised framework of the human settlement code was developed for consultation and implementation
The Accreditation Framework has been revised to allow for improved accreditation and assignment framework for municipalities
land acquired during quarter 4, however there is slow progress on rezoning

10. Policy and Support
The draft Backyard Rental Policy has been consulted upon
The USDG Policy has been finalised and awaiting tabling
The Social and Rental Housing income bands and grant quantum revised for approval and application

11. Programme Delivery Annual target Quarter 4 target
Quarter 4 actual performance
2016/2017 preliminary performance
MTSF Delivery
households in informal settlements upgraded
55 000
HSDG
USDG
Total:
HSDG
USDG
Total for the year:
HSDG
USDG
Total:
500 feasibilities on informal settlements conducted
175 24
283 achieved with a variance of 217
444 Informal settlement upgrading plans developed
144
224
413 achieved with a variance of 31
subsidy housing opportunities provided
45 000
29 151
subsidy housing opportunities provided
title deeds issued for new subsidy houses
subsidy houses
title deeds issued for new subsidy houses

12. Programme Delivery Annual target Quarter 4 target
Quarter 4 actual performance
2017/2017 preliminary performance
MTSF Delivery
pre- and post 1994 title deeds issued
cumulatively
10 752
pre and post 1994 title deeds
pre and post 1994 title deeds
2 000 CRU units delivered
500
219
CRU units
5 258
6 301 Social Housing units delivered
1801
1 599
3 058 Social Housing units
8 165
3 700 private affordable rental opportunities delivered
1000
1 112
private affordable rental opportunities
16 577

13. Partially Achieved Targets : Quarter 4
Land rezoning
Issuing of title deeds (pre and post 1994 ) including the new title deeds from 2014
Draft White Paper
Master Spatial Plan
73 % of the Annual Audit Plan implemented
88% of the risk management plan implemented
68 % of the anti-fraud and corruption plan implemented
87% of the HR plan implemented

14. Targets Not Achieved : Quarter 4
Feasibilities in informal settlements
Target on the upgrading of households not met during Quarter 4
State Finance products not revised as planned

15. Overall Departmental Performance

16. Departmental Expenditure Report

17. Departmental Expenditure as at 31 March 2017*
Programmes
Total
Allocation
Virement
Revised Allocation
Expenditure
Variance
% Spent
From To
1. Administration
(15 000)
9 800
34 562
92.4%
2. Human Settlements Policy, Strategy and Planning
88 063 -
4 213
92 276
86 598
5 678
93.8%
3. Programme Delivery Support
(12 713)
13 700
65 942
69.7%
4. Housing Development Finance
2 944
100.0%
(27 713)
27 713
99.6%
* Expenditure Subject To Auditing!

18. Departmental Expenditure as at 31 March 2017
Programmes
Total Allocation
Expenditure
Variance
% Spent
1. Administration
33 962
92.5%
Compensation of employees
21 992
89.8%
Goods and services
-4 253
102.0%
Of which:
Internal Audit and SIU
18 402
15 605
2 798
84.8%
2. Human Settlements Policy, Strategy and Planning
92 276
86 560
5 716
93.8%
3. Programme Delivery Support
66 542
69.5%
81 259
59 933
21 326
73.8%
82 762
41 288
66.7%
National Upgrading Support Programme
41 392
33 210
8 182
80.2%
Computer Services HSS
25 000
11 781
13 219
47.1%
4. Housing Development Finance
2 944
100.0%
Total
99.6%

19. Transfer Payments as at 31 March 2017
Adjusted Allocation
Expenditure
Variance
% Spent
Grants -
100%
Human Settlements Development Grant
Urban Settlements Development Grant
Entities
Social Housing Regulatory Authority: Operational
36 392
Social Housing Regulatory Authority: Institutional Investment
28 083
Social Housing Regulatory Authority: Restructuring Capital Grant
Social Housing Regulatory Authority: Regulations
6 000
Community Schemes Ombuds Services
30 020
National Housing Finance Corporation
Housing Development Agency
Housing Development Agency: NUSP
10 000
Departmental Transfers
18 138
16 747
1 391
92%
Mangosuthu University of Technology
3 500
Scholarship Programme
5 900
4 581
1 319
78%
UN Habitat
1 924
1 923 1
Households
1 814
1 742 72
96%
CSIR
5 000
Total

20. Human Settlements Development Grant Expenditure Performance as at 31 March 2017
Provinces
Voted Funds to provinces
Roll Over from 2015/16
Total Available
Year to date (1 April March 2017)
Expenditure :Total available
% Expenditure: Total Available
Unspent funds
% Unspent
R'000
Eastern Cape
4 186
100 -
Free State
2 784
2 878
Gauteng 99
43 705 1
KwaZulu-Natal
1 372
Limpopo 95
85 836 5
Mpumalanga
11 888
Northern Cape
3 821 98
6 803 2
North West 91 9
Western Cape
Total

22. Work In Progress Levels
Eastern Cape
Work In Progress Levels
Output
Foundations
4 860
Wall Plate
2 390
Roof
3 843
Finishes
1 023
Total
12 116
Provinces
Amount transferred
Expenditure
Balance/entity
Units delivered
R'000
Eastern Cape
No transfers, Claims paid
2 248

23. Work In Progress Levels Accreditation support
Free State
Work In Progress Levels
Output
Foundations
246
Wall Plate
134
Finishes 9
Units completed but not counted due to various reasons
126
Total
515
Provinces
Amount transferred
Expenditure
Balance
Units delivered
R'000
Free State
3 000 o
Accreditation support

24. Work In Progress Levels
Gauteng
GAUTENG
Work In Progress Levels
Output
Foundations
962
Wall Plate
1 633
Roof
539
Units completed but not counted due to uninstalled basic services
9 481
These will be included as units concluded once the FURs have been issued
Total
12 615
Transfers
Amount transferred
Expenditure
Balance/entity
Units delivered
R'000
Gauteng
1 473

25. Work In Progress Levels
KwaZulu-Natal
Province
Amount transferred
Expenditure
Balance Ithala Bank
MV units delivered
R'000
KwaZulu-Natal
1 show house
Work In Progress Levels
Output
Foundations
3 265
Wall Plate
3 935
Total
7 200

26. Work In Progress Levels
Limpopo
Work In Progress Levels
Output
Foundations
1 204
Wall Plate
1 097
Roof
1 150
Total
3 451
Provinces
Amount transferred
Expenditure
Balance
Units delivered
R'000
Limpopo
399

27. Work In Progress Levels No response received from the Province
Mpumalanga
MPUMALANGA
Work In Progress Levels
Output
Foundations
1 161
Wall Plate
1 418
Roof
1 339
Finishes
767
Total
4 685
Province
Amount transferred
Expenditure
Balance
Units delivered
R'000
Mpumalanga
No response received from the Province

28. Work In Progress Levels
Northern Cape
NORTHERN CAPE
Work In Progress Levels
Output
Foundations
327
Wall Plate
205
Roof
356
Total
888
Provinces
Amount transferred
Expenditure
Balance
Units delivered
R'000
Northern Cape
30 578
Land acquisition & planning

29. Work In Progress Levels
North West
NORTH WEST
Work In Progress Levels
Output
Foundations
2 317
Wall Plate
2 629
Finishes
2 799
Total
7 745
Province
Amount transferred
Expenditure
Balance
Units delivered
R'000
North West
No transfers made

30. Work In Progress Levels
Western Cape
WESTERN CAPE
Work In Progress Levels
Output
Foundations
286
Wall Plate
319
Roof
212
Total
817
Province
Amount transferred
Expenditure
Balance
Units delivered
R'000
Western Cape
No transfers made, municipalities submit claims and payment is effected on value created

31. Other Programmes as at 31 March 2017
Other Milestones
Other Programmes as at 31 March 2017
Programmes
Annual Targets
Delivery Performance
Sites
Units
Funds Allocated
Expenditure
R'000
EEDBS 50
3 574
68 113 -
5 851
45 067
Rectification
3 685
4 699
OPSCAP
747
Land Hectares
308
75 639
1 528
Eradication of Title Deeds Backlog
34 250
Disaster Relief Fund
174
124
248
35 932
Total
47 323

32. FLISP FISP as at 31 March 2017 Province Annual Targets
Delivery Performance
Sites
Units
Funds Allocated
Expenditure
R'000
Eastern Cape -
203
3 249
194
8 981
Free State 80
4 800 23
1 228
Gauteng
893
56 536
1 245
21 006
KwaZulu-Natal
2 000
400
96 000
347
11 875
Limpopo
256
21 248 6
287
Mpumalanga
6 960 44
1 901
Northern Cape 30
2 182 15
678
North West 34
6 078 60
3 301
Western Cape
1 161
58 050
755
36 069
Total
3 137
2 689
85 326

33. Rectification as at 31 March 2017
Province
Annual Targets
Delivery Performance
Units
Funds Allocated
Expenditure
R'000
Eastern Cape
1 899
2 653
KwaZulu-Natal
1 786
1 622
Limpopo - 15
3 332
Western Cape
4 000
395
8 815
Total
3 685
4 685

34. Other Programmes as at 31 MARCH 2017
OPSCAP
Other Programmes as at 31 MARCH 2017
5% allocation
Funds Allocated
Units
Expenditure
R'000
Eastern Cape
98 119
55 132 -
38 711
Free State
52 864
46 070
Gauteng
KwaZulu-Natal
747
Limpopo
64 194
47 616
43 678
Mpumalanga
63 258
65 732
44 940
Northern Cape
19 020
18 555
29 075
North West
53 536
Western Cape
98 756
57 466
Total

35. Disaster Relief Programme as at 31 March 2017
DISASTER RELIEF GRANT
Disaster Relief Programme as at 31 March 2017
Province
Annual Targets
Delivery Performance
Units
Funds Allocated
Sites
Expenditure
R'000
Eastern Cape -
124
122
29 923
Gauteng
47 379
Limpopo
29 678
Mpumalanga
174
17 952
126
6 009
Total
248
35 932

36. Mining Towns Province Mining Towns as at 31 March 2017 Area
Annual Targets
Delivery Performance
Sites
Units
Funds Allocated (Gazetted)
Funds Allocated (As per BP
Expenditure
R'000
Free State
Matjhabeng
967
2 208 90
1 127
Total
Gauteng
Merafong City
935
986
26 000 -
Randfontein
33 000
10 711
Westonaria
1 000
1 787
44 000
Mogale City
1 115
1 368
20 000
3 050
4 141
Limpopo
Thabazimbi
491
27 000
46 648
107
15 510
Greater Tubatse
517
6 000
50 943
539
45 578
Elias Motsoaledi
240
406
12 000
50 465
488
33 127
Lephalale
1 054
975
18 000
632
592
Fetakgomo
521
3 000
50 635 35
5 961
1 294
2 910
66 000
1 761

37. Mining Towns Province Mining Towns as at 31 March 2017 Area
Annual Targets
Delivery Performance
Sites
Units
Funds Allocated (Gazetted)
Funds Allocated (As per BP
Expenditure
R'000
Mpumalanga
Emalahleni
2 000
1 976
96 000
4 000
784
Steve Tshwete
745
528
38 000 - 3
76 115
Thaba- Chweu
235
28 000
20 750
638 87
6 819
Total
2 745
2 739
4 638
874
Northern Cape
Tsantsabane 15
11 000
12 600
588
8 474
Ga-Segonyana
360 49
13 000
24 215 96 42
8 665
Gamagara
500
10 000
11 250
5 148
Kgatelopele
4 700
222
1 360 64
36 000
52 765
684
22 509
North West
Kgetleng Rivier
498
15 000
65 069
597
63 330
Madibeng
1 034
1 069
232
33 339
Moses Kotane
922
60 000
405
Rustenburg
2 070
1 639
177
565
Matlosana
780
69 000
98 708
951
1 589
3 104
4 908
1 128
3 388
Grand Total
12 520
16 970
7 172
7 192

38. URBAN SETTLEMENTS DEVELOPMENT GRANT
PERFORMANCE AS AT 31 MARCH 2017

39. USDG PERFORMANCE – EXPENDITURE AS AT 31 MARCH 2017
USDG EXPENDITURE (01 JULY 2016 – 31 MARCH 2017)
Municipality
Voted Funds 1
Roll-over from /16 2
Total Available Funds
3=(1+2)
Transfer from Voted funds 4
Spent by Municipality 5
% Spent
7=(5÷3)
Unspent Funds
6=(3-5)
% Unspent
8=(6÷3)
R'000
Buffalo City -
69.7
30.3
Nelson Mandela Bay
50.6
49.4
Mangaung
58 644
69.5
30.5
Ekurhuleni
43.1
56.9
City of Johannesburg
94 984
54.4
45.6
City of Tshwane
64.6
35.4
eThekwini
45.4
54.6
City of Cape Town
50.2
49.8
Total
53.6
46.4

40. Expenditure as at 31 March 2017

41. CONSOLIDATION – FUNDS UTILISATION AS AT 31 MARCH 2017
Description
Adjusted Budget
% of Total Adjusted Budget
Spent by Municipality
% Spent
Unspent Funds
% Unspent
Non financial
R'000
Land acquisition
3.7
79.7
83 477
20.3
Human Settlements/ Housing
29.2
50.3
49.7
Roads and Stormwater
14.2
56.9
43.1
Transport
4.7
50.1
49.9
Water and Sanitation
30.2
61.8
38.2
Electricity
8.3
50.7
49.3
Waste Management
98 903
0.9
56 116
56.7
42 787
43.3
Social Amenities
5.3
28.5
71.5
Title deed issued
512 -
111
21.7
401
78.3
Office of City Manager - eThekwini
1.7
100
3% USDG OPSCAP - (BCM, Mangaung, Ekurhuleni, City of Tshwane and City of Cape Town)
1.0
70 877
62.7
42 083
37.3
VAT (City of Cape Town)
88 380
0.8
Total
53.6
46.4
R10 billion has been invested in Human Settlements development programmes i.e. land acquisition, Housing & Human Settlements, Road and Storm water, Transport, Water, Sanitation and Electricity and R5.7 (57%) billion was spent.

42. BUFFALO CITY Description Adjusted Budget Spent by Municipality
Unspent funds
R'000
Human Settlement
26 847
Roads and Storm water
44 573
Transport
57 500
2 461
55 039
Water
47 500
47 558
- 58
Sanitation
58 610
Electricity
18 000
8 427
9 573
Waste Management/ Refuse
21 955
9 759
12 196
Social Amenities (Public Spaces)
15 000
6 586
8 414
EPMO-Project Management Funding
21 167
14 994
6 173
Total

43. NELSON MANDELA BAY Description Adjusted Budget Spent by Municipality
Unspent funds
R'000
Human Settlements
Roads, Storm water and Transportation
89 650
45 365
44 285
Water Service
81 585
Sanitation Service
Electricity
19 220 -
Total

44. MANGAUNG Description Adjusted Budget Spent by Municipality
Unspent funds
R'000
Human Settlement and Housing
61 291
46 334
14 957
Roads and Storm water
Water Services
66 906
Sanitation
Waste management
14 139
4 126
10 013
Social Amenities, Economic and Rural Development Programmes
40 323
20 790
19 533
3% USDG OPSCAP
7 000
1 638
5 362
Total

45. EKURHULENI Description Adjusted Budget Spent by Municipality
Unspent funds
R'000
Land Banking & Property acquisition
90 166
59 834
Housing
Roads and Stormwater
79 944
79 086
Transport
31 257
16 916
14 341
Water and Sanitation
Electricity
75 884
Waste Management - Refuse Removal
46 000
30 031
15 969
Social Amenities
78 043
48 530
29 513
OPSCAP - Capacity
6 800 -
Total

46. CITY OF JOHANNESBURG Description Adjusted Budget Spent by Municipality
Unspent funds
R'000
Land Acquisition
10 149
3 010
7 139
Housing and Human Settlements
Roads
Water
70 650
39 812
30 838
Sanitation
6 300 -
Electricity
89 772
Social Amenities (Sports,Recreation & Arts)
12 081
Total

47. CITY OF TSHWANE Description Adjusted Budget Spent by Municipality
Unspent funds
R'000
Land Acquisition
30 971
30 970 1
Housing & Human Settlements
Roads and Transport
62 506
Water & Sanitation
Electricity
3% USDG OPSCAP
46 180 -
Total

48. ETHEKWINI Description Adjusted Budget Spent by Municipality
Unspent funds
R'000
Land acquisition
45 000
28 497
16 503
Housing
75 972
Roads and storm water
42 889
64 545
Ethekwini Transport Authority
63 664
59 031
Water
Sanitation
7 795
Electricity
94 248
46 637
47 611
Social Amenities
33 135
Solid Waste/ Refuse
16 809
12 200
4 609
Office of the City Manager -
Total

49. CITY OF CAPE TOWN Description Adjusted budget Spent by Municipality
Unspent funds
R'000
Land acquisition -
Human Settlements
97 028
Transport
Water and Sanitation
Electricity
66 674
65 682
Social Amenities
48 371
63 734
Title deed
512
111
401
3% USDG OPSCAP
31 813
8 065
23 748
VAT
88 380
Total

50. Overall Summary
The overall reported expenditure by Provinces on the HSDG is 98% - Eastern Cape and Western Cape Provinces reported full expenditure.
A total of R353 million was reported as unspent by Provinces and North West Province is the lead contributor with R200 million
All the unspent funds will be subjected to roll-over processes as per Section 22 of the 2016 DORA
Provinces reported a total delivery performance of 83% of housing opportunities and Limpopo and Western Cape were the only two Provinces to exceed targets.
The National Department did not meet its annual target of 175 378 housing opportunities
Three Provinces have reported a joint 2016/17 accrual amount of R896 million - Eastern Cape with R450 million followed by Gauteng and Free State with R278 million and R168 million respectively.
The first tranche of the 2017/18 financial year was transferred on the 25 April 2017
The Business plans of Eastern Cape, Gauteng and Free State Provinces are pending approval the first tranches was not transferred on the 25 April 2017 but on or about the 08th May 2017

51. Recommendations
It is recommended that the Committee notes the presentation detailing non-financial performance made during Quarter Four of 2016/17
It is recommended that the Committee notes the presentation detailing financial report for Quarter Four of 2016/17, pending the final audit.
Note that the Qualitative Targets on Delivery are preliminary and will be subject to change in the annual report - currently in the process of being validated