1. Department Of Human Settlements Annual Performance Report For The Financial Year 2015/16 Director-General Mr. M.Tshangana

2. Structure Of The Presentation
Overview of the Departmental Performance
Progress on Qualitative Outputs
MTSF- Sector Performance
Grants Expenditure Report
Financial Matters
Response and Action Plan on Audit Outcomes

3. Overall Departmental Performance Per the Tabled Plan: 74 Annual Targets 56 Targets Achieved 14 Targets Partially Achieved 4 Targets Not Achieved

4. Qualitative Outputs Achieved as at March 2016
Consolidation of the Human Settlements Development Finance Institutions has commenced -
The relevant directives have been issued by Minister Sisulu and being actioned by the Department in conjunction with the NHFC, RHLF and NURCHA
A tax amendment is pending that will allow for the transfer of assets and liabilities of RHLF and Nurcha into the NHFC. This allows for the operational intergation.
A policy foundation for the creation of a single DFI was developed, allowing for the development of a draft business case and commencement of the process to draft a bill

5. Qualitative Outputs Achieved as at March 2016
The following policies and programme frameworks were revised for consultation and adoption and also inform the content of the White Paper currently being drafted for adoption and publication for comment:
Beneficiary Allocations Policy
Revision of the Pre-emptive Clause on the Sale of Subsidised Houses
CRU Policy
The Review of programmes in the Housing Code commenced
An evaluation of the Social Housing Programme was completed
An investment framework to guide human settlements development was completed for consultation and adoption.

6. Qualitative Outputs Achieved as at March 2016
A proto-type of the business intelligence dash-board developed to improve monitoring and reporting on programme
A central intervention to fast track the issuing of title deeds commenced
A consumer education programme was implemented with provinces and municipalities to curb illegal property sales and ensuring that consumers apprecaited socio-economic benefits and value of owning the property
A programme ensured that the NHBRC enrolled all subsidised projects and monitored their construction

7. Qualitative Outputs Acheived as at March 2016
An interspherical package of support was developed, concluded and implemented in Nelson Mandela Bay Municipality
A training support and incubation programme for youth and women implemented by the Department with the NHBRC, EAAB and HDA

8. Qualitative Outputs Acheived as at March 2016
The Implementation Guidelines for PHP was tabled for approval
The strategy for human settlements in mining town towns developed to support the current programme interventions
The revision of the guidelines for human settlements development commenced
Programme and institutional support to allow for accreditation of the housing function was provided to municipalities

9. MTSF Outputs Progress as at 31 March 2016
additional households provided with adequate housing
additional households upgraded
Assessment and analysis of 101 catalytic projects was completed and recommended for due diligence and implementation
loans issues by the Human Settlements DFI’s
Three (3) municipalities pre-assessed for accreditation
463 feasibilities in informal settlements were completed in various municipalities

10. MTSF Implementation Progress as at 31 March 2016
additional affordable rental opportunities were delivered comprising:
3 480 Social Housing
21 52 CRU
6 565 through NHFC loans provided
Various Provincial PHP initiatives yielded PHP units

11. Progress On Implementation of the MTSF as at 31 March 2016
MTSF TARGET 2019
ANNUAL TARGET
2015/2016
PROGRESS 2015/2016
TOTAL DELIVERED FROM 2014-MARCH 2016
households living in adequate housing through the subsidy and affordable housing segments
households living in adequate housing
households living in adequate housing through the subsidy and affordable housing segments
households living in adequate housing through the subsidy and affordable housing segments
Shortfall for 2 years :
750 000 households in informal settlements upgraded
households in informal settlements upgraded
households in informal settlements upgraded:
HSDG: households
USDG: households
households in informal settlements upgraded
Shortfall from : households
563 000 individual units for subsidy housing submarket provided
individual units for subsidy housing submarket
individual units provided for subsidy market –
subsidy housing units provided
Shortfall from March 2016:

12. Progress On The Implementation Of The MTSF As At 31 March 2016
MTSF TARGET 2019
ANNUAL TARGET 2015/16
PROGRESS 2015/16
TOTAL DELIVERED FROM 2014-MARCH 2016
900 Title deeds backlog eradicated
pre- and post 1994 title deeds issued
title deeds issued
new title deeds issued to home owners
new title deeds issued to home owners
title deeds issued to new home owners
Title deeds issued .
subsidy housing units delivered between March 2016
Shortfall of
Affordable housing loans for new houses in the affordable-gap housing market
110 000 loans ( FLISP and DFI supported)
loans granted
units produced through loans
new units in the affordable housing market produced through loans granted by the DFI’s

13. Progress On The Implementation Of The MTSF As At 31 March 2016
MTSF TARGET 2019
ANNUAL TARGET 2015/16
PROGRESS 2015/16
TOTAL DELIVERED FROM 2014-MARCH 2016
50 catalytic projects implemented demonstrating spatial, social and economic integration
10 catalytic projects implemented
101 catalytic projects recommended for approval by the Minister
Number of informal settlements assessed
460 informal settlements assessed
In collaboration with the HDA, the National Upgrading Support Programme (NUSP) completed the assessment of 816 informal settlements in 62 municipalities. Of these 503 detailed settlement plans are being developed.
The relevant appointments have been concluded and additional feasibilities and settlement plans are being undertaken.

14. Progress On The Implementation Of The MTSF As At 31 March 2016
MTSF TARGET 2019
ANNUAL TARGET 2015/2016
PROGRESS 2015/2016
TOTAL DELIVERED MARCH 2016
of hectares of well-located land rezoned and released for new developments
2000 hectares of well-located land rezoned and released for new developments
4 622 hectares of land released for new developments
hectares of land released for new development s

15. Overview Of Provincial Non-Financial Performance Housing And Human Settlement Delivery Trends For The Period For The Human Settlements Development Grant 01 April 2015 – 31 March 2016
Ver: 01 June 2016

16. Delivery For April 2015 – March 2016 in relation to HSDG Targets for the Year
Note: 2015/16 delivery figures are up to end March 2016 and are preliminary.
Annual Targets for 2015/16 (as per DG Memo, Planning Unit, )
1 224 Discount Benefit Scheme outputs excluded from WC Houses/Units (Refer to Alignment slide).

17. April 2015 – March 2016 Deficit in Relation to Targets
Note: 2015/16 delivery figures are up to end March 2016 and are preliminary.
Annual Targets for 2015/16 (as per DG Memo, Planning Unit, )
1 224 Discount Benefit Scheme outputs excluded from WC Houses/Units (Refer to Alignment slide).

18. Numerical Targets and Deficits on Delivery April ‘15 – March ‘16
Note: 2015/16 delivery figures are up to end March 2016 and are preliminary.
Annual Targets for 2015/16 (as per DG Memo, Planning Unit, )
1 224 Discount Benefit Scheme outputs excluded from WC Houses/Units (Refer to Alignment slide).

19. Delivery in relation to Annual Target and Expenditure Performance
Note: 2015/16 delivery figures are up to end March 2016 and are preliminary.
Annual Targets for 2015/16 (as per DG Memo, Planning Unit, )
1 224 Discount Benefit Scheme outputs excluded from WC Houses/Units (Refer to Alignment slide).

20. Audit Improvements on the HSS Data
The figures up to March 2016 are 100% aligned with what is captured on the HSS by the Provincial Depts.
Net Capture:
Sites: 100%
Houses: 100%
Overall: 100% ( sites + houses captured)

21. Audit Improvements on the HSS Data
The figures up to March 2016 are 100% aligned with what is captured on the HSS by the Provincial Depts.
1 224 Discount Benefit Scheme outputs excluded from WC Houses/Units (Refer to Alignment slide).
Net Capture:
Sites: 100%
Houses: 100%
Overall: 100% ( sites + houses captured)

22. Comment on Partially Achieved Targets
The DFI Consolidation process is a multi-year process hence completion of a target overlaps over reporting periods
The in year target on the issuing of title deeds performed poorly and measures are being put in place to allow for recovery
The drafting of the policy for coherent and inclusive approach to land and regulations for land use management
The evaluation of the access to the city evaluation was cancelled due to non performance by the service provider

23. Comment on Partially Achieved Targets
The upgrading of households in informal settlements - annual target was not met and required intervention measures are being considered and in place including the ring-fencing of grants for
The accreditation of municipalities was partially achieved due to the fact that the approach to accreditation accreditation required revision based on practical implementation difficulties.

24. Comment on Targets Not Achieved
The bi-annual reports on property trends was not disseminated- and it was resolved that the department is collating the information through the research and policy unit and will be published accordingly
The capacity building programme in programme 3 was not implemented ad the target has been re-prioritised

25. Expenditure Report For The 2015/16 Financial Year

26. Expenditure by Programme: 31 March 2016
Total Allocation
R' 000
Commitments
Expenditure
Variance
% Spent
1. Administration
8 697
24 177
94%
2. Human Settlements Policy, Strategy and Planning
77 493
203
75 738
1 755
98%
3. Programme Delivery Support
1 239
45 894
72%
4. Housing Development Finance 2
99%
Total
10 141

27. Operational Expenditure by Programme: 31/03/2016
Total Allocation
R' 000
Commitments
Expenditure
Variance
% Spent
1. Administration
8 697
24 168
94%
2. Human Settlements Policy, Strategy and Planning
75 884
203
74 129
1 755
98%
3. Programme Delivery Support
1 239
44 468
72%
4. Housing Development Finance
21 400 2
20 999
401
Total
10 141
70 791
90%

28. Transfer Payments: 31 March 2016
Total Allocation
Expenditure
Variance
% Spent
Grants -
100%
Human Settlements Development Grant
Urban Settlements Development Grant
Municipal Human Settlements Capacity Grant
Entities
51%
Social Housing Regulatory Authority: Operational
34 560
Social Housing Regulatory Authority: Institutional Investment Grant
41 936 0%
Social Housing Regulatory Authority: Restructuring Capital Grant
25%
Community Schemes Ombuds Services
39 521
National Housing Finance Corporation
National Urban Reconstruction and Housing Agency
61 000
Housing Development Agency
71 568
59%
Departmental Transfers
11 966
9 154
2 812
76%
Bursaries Scheme
8 792
7 374
1 418
84%
UN Habitat
1 368
Households
1 806
1 780 26
99%
Total

29. HSDG Expenditure Performance: 31 March 2016
Provinces
Voted Funds
Reallocated Funds
Adjustment
Roll Overs
Total Available
Year to date (1 April March 2016
Transferred Funds
Spent by Provinces
Variance Spent vs Total Available
Spent as % of Total Available
R'000
Eastern Cape -
4 192
100%
Free State 47
Gauteng
23 388
99%
KwaZulu-Natal
Limpopo
71%
Mpumalanga
70 380 56
Northern Cape
3 849
North West 2
Western Cape
Total
97%

30. Milestones Which Did Not Yield New Opportunities as at 31 March 2016
Programmes
Annual Targets
Delivery Performance
Sites
Units
Funds Allocated
Expenditure
R'000
EEDBS -
1 262
76 462
6 395
42 547
Rectification
5 739
8 251
OPSCAP
Land Hectares
513
483
Disaster Relief Fund
374
3 413
Total
7 514
15 129

31. Outputs Upgrading of Informal Settlements in Mining Towns
Province
Mining Towns
Area
Annual Targets
Delivery Performance
Sites
Units
Funds Allocated (Gazetted)
Funds Allocated (As per BP
Expenditure
R'000
Free State
Matjhabeng -
780
75 337
1 342
Total
Gauteng
Merafong City
615
50 000
53 009
Randfontein
136
52 000
27 508
Westonaria
1 683
1 000
60 900
1 751
Limpopo
Thabazimbi
195
16 400
32 785
Greater Tubatse
610
740
36 500
398
39 394
Elias Motsoaledi
800
294
16 600
44 052 91
12 378
Lephalale
3 089
677
77 100
86 191
523
42 512
Fetakgomo
192
7 600
20 856
102
8 893
4 499
2 098
1 114

32. Outputs Upgrading of Informal Settlements in Mining Towns
Province
Mining Towns
Area
Annual Targets
Delivery Performance
Sites
Units
Funds Allocated (Gazetted)
Funds Allocated (As per BP
Expenditure
R'000
Mpumalanga
Emalahleni
3 990
2 809
51 400
4 000
1 503
Steve Tshwete -
36 300
39 542
311
151
38 016
Thaba- Chweu
180
26 800
27 970
202
25 448
Total
2 989
4 311
1 856
Northern Cape
Tsantsabane
390
22 140
37 133
16 644
Ga-Segonyana 50
13 600
15 130
218
13 150
Gamagara 43
9 800
4 923 38
4 162
Kgatelopele
4 500
2 114
3 885
Joe Morolong
238
19 544 93
50 040
59 300
494
57 385
North West
Kgetleng Rivier
866
61 600
477
59 281
Madibeng
847
456
37 504
Moses Kotane
484
44 000
713
Rustenburg
2 417
1 211
1 435
915
Matlosana
966
722
73 200
1 815
3 383
4 130
4 376
Grand Total
13 945
11 841
5 746
9 182

33. Outputs Finance Linked Individual Subsidy Programme
Report as at 31 March 2016
Province
Annual Targets
Delivery Performance
Sites
Units
Funds Allocated
Expenditure
R'000
Eastern Cape -
200
12 442
247
11 382
Free State 37
5 100 13
461
Gauteng 90
1 293
906
9 018
KwaZulu-Natal
2 000
350
81 750
458
27 062
Limpopo
300
24 900 43
25 594
Mpumalanga
100
8 700 32
1 350
Northern Cape 30
2 182 42
North West
277
23 359
Western Cape
145
6 250
411
23 901
Total
2 090
2 732
2 110
98 810

34. Outputs Rectification Programme
Report as at 31 March 2016
Province
Annual Targets
Delivery Performance
Sites
Units
Funds Allocated
Expenditure
R'000
Eastern Cape -
2 487
3 520
Free State
370
Gauteng
KwaZulu-Natal
2 273
3 102
Limpopo
500
43 500
940
Mpumalanga 37
Northern Cape
11 019 66
5 944
North West
44 998
880
19 087
Western Cape
479
11 200
276
8 064
Total
5 739
8 251

35. Provincial Operational Capital Budget
Report as at 31 March 2016
Province
Annual Targets
Delivery Performance
5% allocation
Units
Funds Allocated
Sites
Expenditure
R'000
Eastern Cape
98 119 -
88 373
50 732
Free State
52 864
52 641
Gauteng
KwaZulu-Natal
Limpopo
64 194
30 938
31 617
Mpumalanga
63 258
60 344
65 049
Northern Cape
19 020
95 285
North West
51 908
52 530
Western Cape
98 756
66 773
Total

36. Outputs Disaster Relief
Disaster Relief Programme
Province
Annual Targets
Delivery Performance
Sites
Units
Funds Allocated
Expenditure
R'000
Eastern Cape -
374
470
42 974
Gauteng
40 000
KwaZulu-Natal
1 926
Limpopo
34 332
34 182
Mpumalanga
34 098
408
40 716
North West
38 507
609
44 941
Western Cape
5 077
Total
3 413

37. USDG Expenditure Performance : 31 March 2016
USDG EXPENDITURE (01 JULY MARCH 2016)
Municipality
Voted Funds 1
Rollover from 2014/
Total Available Funds (1+2)
Actual Transfer from Voted funds 4
Spent by Metros 5
% Spent against Total Available funds (5÷3)
% Spent against Transferred funds (5÷4)
Unspent from Total Available Funds (3-5)
% Unspent against Total Available Funds (8÷3)
R'000
Buffalo City
42 403
64.6
68.5
35.4
Nelson Mandela Bay -
63.5
36.5
Mangaung
77 536
55.2
61.4
44.8
Ekurhuleni
42.9
54.3
57.1
City of Johannesburg
63.4
36.6
City of Tshwane
36 868
57.9
59.3
42.1
eThekwini
47.4
52.6
City of Cape Town
43.2
48.3
56.8
Total
52.7
56.7
47.3

38. USDG Consolidated - Financial Performance 31 March 2016
Description
Allocated Budget
% of Total Allocated Budget
Spent by Metros
% Spent
Unspent funds
% Unspent
R'000
Land acquisition
2.8
36.5
63.5
Housing
26.6
54.2
45.8
Roads and Stormwater
13.2
50.6
49.4
Transport
10.7
55.7
44.3
Water and Sanitation
27.5
53.0
47.0
Electricity
6.0
59.6
40.4
Waste Management
3.0
67.0
33.0
Social Amenities
5.4
42.2
57.8
EPMO-Project Management Funding
21 942
0.2
17 546
80.0
4 396
20.0
Economic and Rural Development
4 232 -
100
Planning
25 835
6 694
25.9
19 141
74.1
Re Aga Tshwane
1.4
94 368
61.2
59 850
38.8
Economic Development and Planning
64 518
0.6
37 386
57.9
27 132
42.1
Office of City Manager
93 104
0.8
4 960
5.3
88 144
94.7
Spatial Planning and Urban Design
7 022
0.1
100.0
Safety and Security - Law enforcement
1 006
VAT
1.5
74 032
42.8
98 968
57.2
Total
52.7
47.3

39. MHSCG Performance - Expenditure 31 March 2016
MHSCG EXPENDITURE (01 JULY MARCH 2016)
Municipality
Voted Funds 1
Rollover from 2014/15 2
Total Available Funds (1+2)
Actual Transfer from Voted funds 4
Spent by Municipality 5
% Spent against Total Available funds (5÷3)
% Spent against Transferred funds
7 (5÷4)
Unspent from Total Available Funds
8 (3-5)
% Unspent against Total Available Funds
9 (8÷3)
R'000
Buffalo City
9 253 -
2 328
25.2
6 925
74.9
Nelson Mandela Bay
9 847
23 235
33 082
11 943
36.1
121.3
21 139
63.9
Mangaung
9 206
954
10.4
8 252
89.7
Ekurhuleni
14 313
50 818
65 131
4 457
6.8
31.1
60 674
93.2
City of Johannesburg
16 505
59 573
76 078
4 026
5.3
24.4
72 052
94.7
City of Tshwane
12 831
16 420
29 251
2 466
8.4
19.2
26 785
91.6
eThekwini
14 342
39 980
54 322
11 359
20.9
79.2
42 963
79.1
City of Cape Town
13 703
31 580
45 283
14 216
31.4
103.7
31 067
68.6
Total
51 749
16.1
51.7
83.9

40. MHSCG – Non-Financial Performance: 31 March 2016
Category
Description
Voted Funds
Spent By Municipalities
Unspent Funds
% Spent
R'000
Capacity
Compensation of Employees/ Salaries
36 572
79 384
31.5
Training of Staff
21 417
1 761
19 656
8.2
Workshops
400 14
386
3.5
Consultants
35 607
10 360
25 247
29.1
Professional / Technical Services
20 545 -
Professional Project Management Services
3 262
Pre-Planning Mega Projects
4 415
303
4 112
6.9
Interim Capacity (Fixed term contracts)
13 336
1 151
12 185
8.6
Research
10 701  -
Support
Rental - External / Buildings
852
479
373
56.2
Risk Management
17 028
Management plan/business processes
1 769
Functional Planning
23 442
Operational Costs
435 83
352
19.1
Office Equipment
16 203
1 023
15 180
6.3
Systems
36 238 3
36 235
Total
51 749
16.1

41. 5. Responses To Audited Outcomes 2015-16

42. Matters Raised in the Audit Opinion
Material under spending of the vote
The Department materially underspent on Programme 3: Programme Delivery Support to the amount of R
Adjustment of material misstatements
There were material misstatements in the annual performance report which were subsequently corrected

43. Matters Raised in the Audit Opinion
Financial statements not prepared in accordance with the prescribed reporting framework as required by section 40 (1) (b) of the PFMA
Contractual obligations and money owed by the department were not settled within the PFMA stipulated thirty (30) days

44. ACCOUNTING OFFICERS REPONSE REGARDING AUDIT OUTCOME
In order to address the misstatements of the performance information submitted, the management effected the required corrections and will review and conduct an internal verification process prior to submission for auditing.
The department is reviewing its processes and procedures to improve quality and content control in the preparation and submission of financial statements
Corrective and oversight measures have been put in place to address the stipulated thirty (30) day turn around of processing and payment of invoices – this includes the activation of receipt of invoice registers
The material under spending in the National Upgrading Support Programme (NUSP) has been attended to through by improving SCM planning of programme and project planning

45. Current Initiatives To Improve Audit and Strategic Outcomes
Technical and operational capacity for programme and project planning is being improved by ensuring the organisational structure is aligned to the strategic focus areas and availability of funding
The Department will through it strategic alignment process remove duplications of capacity and funding within the Department, Provinces, Municipalities and Entities, allowing for improved and increased capacity to meet key targets and outputs
Improving monitoring and oversight of the sector delivery supply chain ensuring improved efficiencies and value for money
Overall improvement of monitoring, evaluation and enforcement of policy and programme compliance focusing on norms and standards.

46. Current Initiatives To Improve Audit and Strategic Outcomes
The Departments is in consultation with National Treasury to improve the operational and grant funding frameworks to mitigate operational and capital budget outcomes.
The Department has implemented a robust and interrogative pre and post planning and monitoring protocol with Sector Departments, Departmental Entities, Provinces, Municipalities.
A series of governance, compliance and adminitsrative frameworks and monitoring tools have been implemented, in process and/or improved and includes the management performance assessment tool (MPAT), entities stakeholder compacts, audit action plan, SCM review and programme, project readiness matrix, responsive planning, implementation and monitoring structure and progressive grant frameworks.

47. “We have come a long way – Celebrating 20 Years of Freedom!”
THANK YOU
“We have come a long way – Celebrating 20 Years of Freedom!”