1. DEPARTMENTAL FIRST QUARTER PERFORMANCE REPORT 2018/19
DIRECTOR-GENERAL: S.M. TSHANGANA
28 AUGUST 2018

2. Presentation Outline
Quarter 1 Performance as per approved Annual Performance Plan 2018/2019
Progress on MTSF Targets
Departmental Expenditure Report as at 30 June 2018
Areas that require improvement
Actions Implemented to Address Performance
Recommendations

3. 1. Programme 1: Administration
There was 75% department compliance in respect of statutory tabling and prescripts and this includes MPAT, Quarter 4 Performance Report, submission of training reports to the DPME, submission of the Annual Report and Annual Financial Statements
There were 23 invoices out of 1571 invoices which were paid after 30 days.
Of the planned 100% implementation of the Human Resources Plan, 68 % was implemented. Implementation covers: Filling of vacant posts, Implementation of HRA conditions of services and benefits, Diversity awareness session etc.
The organizational structure is being costed within current budget allocation and be considered within the prescript
2/24/2019

4. 1. Programme 1: Administration
Progress in legislation of Human settlements indicates the following:
The Property Practitioners’ Bill 2018 has been introduced into Parliament
The Human Settlements Bill 2018 has been considered as part of policy and legislation
The amendments to PIE Amendment Bill 2018 will be considered after relevant consultation with stakeholders
The HLAMDA and Consumer Protection Bill are being submitted to Parliament for approval
The development of the Development Bank Bill 2018 is being finalised along with the business case.
184 disputes are lodged with the office of Ombudsman and 175 under investigation

5. 2. Programme 2: Human Settlements Policy, Strategy and Planning
The Framework for Upgrading of Informal Settlement Programme (UISP) was developed and is being submitted for approval
The research agenda which was approved during the period under review covers:
The review of a model for calculating jobs created during the delivery of Human Settlements.
Research to determine how other countries deal with the poor and homeless people
Towards the development of a National Rental Housing Strategy and Policy
Analysis of the functionality of residential property market
Review of the empowerment framework for the designated groups in the Human Settlements Sector. 
2/24/2019

6. 3. Programme 3: Housing Delivery Targets
101 Feasibilities studies on informal settlements were conducted in Nelson Mandela (31), Buffalo City (20), Jhb Region D (26), Jhb Region F (12), Lesedi (12)
14 Informal settlements upgrading plans were developed in Tlokwe (JB Marks)
Gauteng and City of Tshwane were supported on the implementation of the informal settlements upgrading programme.
Housing for non-statutory Military Veterans: The Department is in the process of assisting Provinces in the delivery 250 units for Military Veterans and in the period under review 11 houses were handed over.
2/24/2019

7. 3. Programme 3: Revitilisation of Distressed Mining Communities Program
The department supported Municipalities with Mining communities through the development and conclusion in the following areas :
Province
Municipality
Limpopo
LIM 476 (Fetakgomo/Greater Tubatse) Elias Motsoaledi, Lephalale, Thabazimbi, Mogalakwena (new)
Gauteng
Rand West City (Westonaria and Randfontein),
Mogale City, Merafong
North West
Rustenburg, Moses Kotane, Madibeng, Kgetleng Rivier, City of Matlosana
Mpumalanga
Emalahleni, Steve Tshwete, Thaba Chweu
Free State
Matjhabeng
Northern Cape
Gamagara,Tsatsabane, Kgatelopele,
Ga-Segonyana, Joe Morolong (new), Khai-Ma (new)
2/24/2019

8. The following catalytic projects were implemented:
3. Programme 3: Programme Monitoring and Delivery Support (Catalytic Projects)
The following catalytic projects were implemented:
Eastern Cape (6)
Algoa Park Infill Project, Duncan Village
Jachvlakte Sustainable Human Settlement Plan,Kwanobuhle Irdp,N2 Nodal Development and Zanemvula
Free state (3)
Airport Node-Estoire ,Sasolburg Properties
Baken Park Ext 6 & 7
Gauteng (13)
Booysens Extension 4 (Kirkney)
,Chief Albert Luthuli Ext 6 ,John Dube
Alexandra Renewal Project (Arp), Evaton Housing Upgrade,Fort West ,Leeuwpoort Lion Park,
Malibongwe Ridge Mixed Housing Project ,Syferfontein ,Lufhereng Olievenhoutbosch Extension 36 Zithobeni 8 And 9 And Zithobeni Heights
KZN (8)
Umlazi Urban Regeneration ,Cornubia Housing Project ,Jbc Mega Housing Development ,Hydepark Country Estate ,Greater Amaoti Housing Project ,Empangeni Mega Irdp ,Ethekwini Inner City and Kwamashu Urban Hub

9. 3. Programme 3: Programme Monitoring and Delivery Support (Catalytic Projects)
Limpopo (1)
Lephalale Altoostyde
Mpumalanga (1)
Klarinet Integrated Housing Development - Phase 2
North West (2)
Matlosana N12 and
Bokamoso
Northern Cape (2)
Lerato Park Integrated Housing Development Project,
Tsantsabane Mixed Typology and Integrated Infrastructure Project
Western Cape (6)
N2 Gateway (Southern Corridor N2 P2) (Southern Corridor Integrated Human Settlement Programme),
Belhar Cbd Development,
Thembalethu UISP, Wilderness Heights, Syferfontein, Erf 325 West,
Vlakkeland Housing Project,
Vredenburg Urban,
North Eastern Corridor and

10. 3. Programme 3: Programme Monitoring and Delivery Support (Capacity Development )
104 Practitioners were trained on human settlements skills developments programmes, in particular, land and property spatial information system (LaPsis)
Province
Total Number
National 30
KwaZulu-Natal 10
North West 23
Limpopo 41
Total
104
2/24/2019

11. 46 youth were supported through the scholarship programme:
3. Programme 3: Programme Monitoring and Delivery Support (Capacity Development )
46 youth were supported through the scholarship programme:
Province
Total Number
Eastern Cape 3
Gauteng 2
KwaZulu Natal 35
Limpopo 1
Mpumalanga
North-West
Western Cape
Total 46
2/24/2019

12. 3. Programme 3: Programme Monitoring and Delivery Support (Capacity Development )
The Capacity Development Programme of the Department includes the following initiatives:
Training of officials
Wits Programme
The Wits programme is designed to empower newly appointed officials at all three spheres of government for all officials who are responsible for housing delivery. The programme is intended to train officials on human settlements policies, processes and the housing service delivery chain. Further to this, the programme was intended to be an entry level qualification into human settlements specific skills development.

13. 3. Programme 3: Programme Monitoring and Delivery Support (Capacity Development )
The Capacity Development Programme of the Department includes the following initiatives:
The impact of the programme is as follows
The programme responds to the outcome 8 objectives in terms of content of the programme and in terms of the sub outcome on capacity interventions
The programme forms part of the National Department Workplace Skills Plan, with officials at various levels putting it in their personal development plans. This is been an on-going trend for the past financial years

14. 3. Programme 3: Programme Monitoring and Delivery Support (Capacity Development )
There is a constant demand from municipalities and provinces for officials to attend the programme
The programme has been attended by officials in provinces ,municipalities and the national department (with senior and top management forming part of the attendants)
2/24/2019

15. 3. Programme 3: Programme Monitoring and Delivery Support (Capacity Development )
IMPACT OF THESE PROGRAMMES
The training programmes have improved the understanding of human settlements policies, processes and legislation at all three spheres
The programmes have also contributed to officials understanding their roles in the human settlements delivery chain particularly new officials and those that work in support services but were moved to technical spaces in their provinces or municipalities
The programmes have also increased the depth of understanding that technical officials have and has enriched the content of the training as inputs on how to improve the training programmes have been incorporated into the programmes over the years

16. Partially Achieved (50% - 99%)
Target Achieved (100%)
Partially Achieved (50% - 99%)
Remedial action is needed to avoid this / there is progress, but the target is not yet achieved.
Not Achieved (0% - 49%)
Certainty that the target will not be achieved or was not achieved in the planned timeframes – major remedial action and urgent intervention is required / the target is far from being reached or not going to be achieved at all

18. 4. MTSF IMPLEMENTATION PROGRESS AS AT 30 JUNE 2018
MTSF TARGET 2019
Performance 1 April 2014 to 31 March 2018
Performance Quarter 1
2018/19
Total up to 30 June 2018
additional households living in adequate housing through the subsidy and affordable housing segments (annual target )
16 939
750 000 households in informal settlements provided with upgraded access to basic services(individual access or shared access) by 2019 (annual target )
28 722
individual units for subsidy housing submarket provided by 2019 (annual target )
16 381
Increase in the volume of home loans granted by private sector and DFI’s to households in the affordable housing market and the creation of new units
10 301

19. 4. MTSF IMPLEMENTATION PROGRESS AS AT 30 JUNE 2018
MTSF TARGET 2019
Performance 1 April 2014 to 31 March 2018
Performance Quarter 1
2018/19
Total up to 30 June 2018
Number of affordable rental housing opportunities provided
State-led:11 847
State-led: 273
CRU: 272
Private: 0
State-led:12 120
CRU: 6 394
CRU: 6 666
Private:
title deeds issued to new homeowners in the subsidy submarket and backlog eradicated
(New Developments):
(Backlog pre- and post- 1994:
(New Developments):
3 193
11 308
97 153
of hectares of well-located land rezoned and released for new developments targeting poor and lower middle income households ha ha ha
NHBRC enrolments
614 projects representing units
46 projects representing units
660 projects representing units

20. 4. MTSF IMPLEMENTATION: SUMMARY OF PROGRESS AS AT 30 JUNE 2018
MTSF OBJECTIVE
DELIVERY AS ON 31 MARCH 2018
REMAINING BALANCE
additional households living in adequate housing through the subsidy and affordable housing segments
(68.0%)
750 000 households in informal settlements provided with improved living conditions (individual and shared access to services and security of tenure) by 2019
(77.9%)
NUSP to assist Municipalities with the upgrading of informal settlements by assessment of current status and development of settlement upgrading plans: Target: informal settlements
1 658 informal settlements assessed
912 settlement upgrading plans developed
542 settlements
1 288 upgrading plans
individual units for the subsidy housing submarket provided by 2019
(85.7%)
64 693
Social Housing units completed or under construction
12 120(44.9%)
14 880
CRU units delivered
6 666 (66.7%)
3 344
affordable private rental units delivered
(77.1%)
5 718
housing opportunities delivered through FLISP
8 361 (11.9%)
61 639

21. 4. MTSF IMPLEMENTATION: SUMMARY OF PROGRESS AS AT 30 JUNE 2018
MTSF OBJECTIVE
DELIVERY AS ON 31 MARCH 2018
REMAINING BALANCE
title deed backlog eradicated
(31.3%)
title deeds issued to new homeowners in the subsidy submarket and backlog eradicated
(21.5%)
of hectares of well-located land rezoned and released for new developments targeting poor and lower middle income households
ha (177.2%) ha
Number of home loans granted by the Private Sector and the DFI’s to households in the affordable market : Target loans (includes incremental loans)
Representing new units: units
loans (56.0%)
Note: Based on performance information available on 21 August 2018 – numbers still to be confirmed during Performance Review meetings scheduled up to 30/08/18 (version 2)

22. Presentation on the expenditure of the department and Human/Urban Settlements Developments Grants

23. Projections vs Expenditure by Programme: 30 June 2018
Programmes
ProjectionsR’000
Commitments
R’000
Expenditure
Variance
% Spent
1. Administration
93 414
34 196
86 159
7 255
92%
2. Human Settlements Policy, Strategy and Planning
18 809
740
17 442
1 367
93%
3. Human Settlements Delivery Support
31 471
49 118
28 606
2 865
91%
4. Housing Development Finance
(Includes Human Settlements Development Grant Transfer)
( )
1 229
98%
Total
85 283
97%
2/24/2019

24. Expenditure by Programme: 30 June 2018
Total Allocation
R' 000
Commitments
Expenditure
Variance
% Spent
1. Administration
34 196
86 159
19%
2. Human Settlements Policy, Strategy and Planning
89 781
740
17 442
72 339
3. Programme Delivery Support
49 118
28 606
12%
4. Housing Development Finance
1 229
13%
Total
85 283

25. Expenditure by economic classification: 30 June 2018
Total Allocation
Commitments
Expenditure
Variance
% Spent
Compensation of employees -
80 539
21%
Goods and services
83 483
52 778
13%
Interest Paid 0%
Payments For Financial Assets
80 002
80 102
(100)
100%
Transfers and subsidies
Payments for capital assets
10 633
1 800
1 161
9 472
11%
Total
85 283

26. Operational Expenditure by Programme: 30 June 2018
Total Allocation
R' 000
Commitments
Expenditure
Variance
% Spent
1. Administration
34 196
86 018
19%
2. Human Settlements Policy, Strategy and Planning
88 435
740
16 237
72 198
18%
3. Programme Delivery Support
49 118
27 129
12%
4. Housing Development Finance
26 934
1 229
5 197
21 737
Total
85 283
17%

27. Transfer Payments: 30 June 2018
Total Allocation
Transferred
Variance
% Transferred
Grants
13%
Human Settlements Development Grant
22%
Urban Settlements Development Grant - 0%
Municipal Emergency Housing Grant
Provincial Emergency Housing Grant
Title Deeds Restoration Grant
59 055
11%
Entities
76 985 7%
Social Housing Regulatory Authority: Operational
51 980
100%
Social Housing Regulatory Authority: Institutional Investment
20 132
Social Housing Regulatory Authority: Restructuring Capital Grant
Social Housing Regulatory Authority: Regulations
10 000
Community Schemes Ombuds Services
31 105
25 005
6 100
80%
Housing Development Agency
Departmental Transfers
11 813
2 824
8 989
24%
Scholarship Programme
10 392
1 401
8 991
UN Habitat
1 346
1 205
141
90%
Households 75
218
(143)
290%
Payments for financial assets
80 000
National Housing Finance Corporation
Total

28. HUMAN SETTLEMENTS DEVELOPMENT GRANT (HSDG) PERFORMANCE - EXPENDITURE AS AT 30 JUNE 2018

29. Human Settlements Development Grant Expenditure (HSDG) Performance as at 30 June 2018
Provinces
Voted Funds
Year to date (1 April June 2018)
Transferred Funds
Spent by Provinces
Unspent against Transferred Funds
Unspent against Total available
% Transferred against Total Available
% Spent against Total Available
% Spent against Transferred Funds
% Unspent against Transferred Funds
R'000
Eastern Cape
1 230 26
100
Free State
4 444 21 98 2
Gauteng 17 5 30 70
KwaZulu-Natal
6 833 22 99 1
Limpopo
57 941 25 82 18
Mpumalanga 34 36
105 -5
Northern Cape
27 472
77 133 6 74
North West 20 12 62 38
Western Cape 59 41
Total 16 73 27

30. Delivery: 3 months in relation to Targets % Performance on Delivery (April – June 2018)

32. Finance Linked Individual Subsidy Programme as at 30 June 2018
Report as at 30 June 2018
Province
Annual Targets
Delivery Performance
Approvals
Funds Allocated
Ringfenced Funds
Expenditure
R'000
Eastern Cape
200
10 000 26
1 129
Free State
225
14 000 4
Gauteng
13 320 -
995
KwaZulu-Natal
2 226 36
2 861
Limpopo
100
5 046
5 000
Mpumalanga
300
24 360 1 27
Northern Cape 20
2 000
North West 79
7 031
7 000 5
240
Western Cape
400
76 036
73 000
125
5 666
Total
16 870
197
11 118

33. Mining Towns expenditures as at 30 June 2018
Province
Mining Towns as at 30 June 2018
Area
Annual Targets
Delivery Performance
Sites
Units
Other
Funds Allocated (Gazetted)
Funds Allocated (As per BP
Expenditure
R'000
Free State
Matjhabeng
5 454
229 -
66 200
89 085 5
43 606
Total
Gauteng
Merafong City
46 900 28
Rand West City
500
300
73 400
33 527 63
Mogale City
250
31 100
550
Limpopo
Thabazimbi
32 400
Elias Motsoaledi
25 600
57 071
145
13 321
Lephalale
419
28 100
104
14 488
Fetakgomo Tubatse
59 100
29 894 81
10 214
Mogalakwena 82
20 000
28 093
154
12 349
501
330
38 023

34. Mining Towns expenditures as at 30 June 2018
Province
Mining Towns as at 30 June 2018
Area
Annual Targets
Delivery Performance
Sites
Units
Other
Funds Allocated (Gazetted)
Funds Allocated (As per BP
Expenditure
R'000
Mpumalanga
Emalahleni
500
2 178 -
63 900
959
Steve Tshwete
608
338
37 500
67 341
157
43 976
Thaba- Chweu
101
32 900
9 160 40
5 904
Total
1 108
2 617
1 156
Northern Cape
Tsantsabane
187
24 800
22 313
Ga-Segonyana
310 20
25 700
29 960
3 384
Gamagara
100
24 700
28 708
3 694
Kgatelopele
140
20 900
20 966
Khai-Ma
20 000
Joe Morolong 89
686
249
7 078
North West
Rustenburg
1 062
66 300
3 116
Madibeng
1 155
79 500 59
16 928
Kgetleng River 99
34 700
13 148
152
9 476
Moses Kotane
429
71 800
57 535
360
399
10 672
City of Matlosana
139
1 857
94 200
826
164
302
29 741
4 602
1 186
434
701
69 933
Grand Total
7 887
8 748
550
953

35. Urban Settlements Development Grant Expenditure (USDG) Performance as at 30 June 2018
Metros
Total Available Funds
USDG EXPENDITURE (01 July 2017 – 30 JUNE 2018)
Spent by Municipality
– 31 May 2018
Unspent funds - 31 May 2018 %
Spent vs. Total Available Funds
31May18
- 30 June 2018
30Jun18
YTD Expenditure movement
31May – 30Jun
Unspent funds – 30 June 2018
R'000
Buffalo City
68.3
91,3
80 660
Nelson Mandela Bay
66.4
100 -
Mangaung
57.5
70,8
City of Ekurhuleni
64.8
97,9
44 592
City of Johannesburg
62.0
99,8
3 646
City of Tshwane
60.3
87,3
eThekwini
58.7
City of Cape Town
58.8
87,9
Total
61.9
93,3

36. Consolidation – Fund Utilisation as at 30 June 2018
Description
Budget
% of Total Budget
Spent by Municipality
% Spent
Unspent funds
% Unspent
R'000
Land Banking & Property acquisition
2.0
99,1
2 132
0,9
Housing & Human Settlements
31.9
91,8
8,2
Roads and Storm water
12.1
95,1
68 539
4,9
Transport
5.6
93,9
39 354
6,1
Water and Sanitation
29.2
94,1
5,9
Electricity
12.0
96,9
43 454
3,1
Waste Management
0.9
94,8
5 544
5,2
Socio Economic Amenities
4.3
88,3
58 432
11,7
3% USDG OPSCAP - BCM, Mangaung, Ekurhuleni, CoT, eThekwini & CoCT
1.6
90,2
18 421
9,8
VAT - City of Cape Town
39 909
0.3 -
0,0
100,0
Total
100
93,3
6,7

37. Title Deeds Restoration Grant Expenditure (TDRG) Performance as at 30 June 2018
Expenditure as at 30 June 2018
Provinces
Voted
Year to date (1 APRIL JUNE 2018 )
Total Available
Transfers to Provinces
Spent by Provinces
Unspent against Transferred funds
Transfers as % of Voted Funds
Spent as % of Total Available
Spent as % of Transferred Funds
R'000
R’000
Eastern Cape
65 583
4 801
724
4 077 7 1 15
Free State
50 187
8 061
587
7 474 16
Gauteng -
KwaZulu-Natal
10 608
5 163
5 445 10 5 49
Limpopo
22 506
4 241
1 798
2 443 19 8 42
Mpumalanga
51 734
9 148
2 334
6 814 18 26
Northern Cape
20 364
1 990
North West
50 687
7 616
15 180
-7 564 30
199
Western Cape
50 361
12 590 25
Total
59 055
25 786
33 269 11 44
The 2018 Division of Revenue Act was enacted on the 04th June 2018 and the first tranche of the TDRG was disbursed on 15 June GP = Grant not transferred

38. Emergency Housing Grants Allocation
The allocations for the 2018 /2019 financial years are as follows:
Applications Received:
Bitou Municipality (Western Cape) :
The relocation costs of R per household amounting to R55 
Transitional Residential Area units (TRA’s) amounting to R3 933 
City of Johannesburg (Gauteng)
Application did not meet the conditions as per the grant framework.
Disaster occurred in December 2017.
Application was for the repairs of damaged housing units (821 households).
Grant
2018/19
Provincial Emergency Housing Grant
R260 million
Municipal Emergency Housing Grant
R140 million

39. 2017/18 Audit Outcome 1. Quality of submitted financial statements
Department of Human Settlement received unqualified audit opinion and the Annual Financial Statement were free from material misstatements however with emphasis of matter on the audit report.
2. Supply Chain Management
Department of Human Settlement received no audit queries
3. Human Resources Management
Department of Human Settlements received no material audit findings
4. Quality of submitted performance information-programme 2,3 and 4 were selected for audit
Programme 2- Received qualification due to the below reasons;
Invalid, inaccurate and incomplete information reported in the Annual report e.g. title deeds and Land acquired, rezoned and released for new development.
Programme 3- Received qualification due to the below reasons
Due to limitation of scope of 5 indicators out of 19 (no audit evidence submitted for households upgraded in IS, 2 Provinces did not submit info on individual units for subsidy market, No evidence for Private Affordable Rental units, 2 Provinces did not submit evidence for CRU’s, No audit evidence submitted for projects that were monitored and verified & Incomplete information submitted for Military Veterans
Programme 4- Received unqualified audit opinion

40. Areas that require attention for improved performance

41. Areas that require attention for improved performance
The department is in the process of consulting the National Treasury and the Department of Planning, Monitoring and Evaluation to ensure improvement in managing within the current concurrency in budgeting, planning and performance reporting process.
The department has instituted an improved IGR contracting process with sector partners in order to address recurring audit findings about insufficient supporting evidence for the achievement of the targets and systems and processes to verify the reliability, accuracy and reliability of specific reported achievements. .

42. Areas that require attention for improved performance
To achieve improved delivery targets, the department has instituted the comprehensive review process of performance information
The department has consulted provinces and municipalities on the 2017/18 audit findings in order to ensure the submission of credible, reliable and useful performance information
A revised Title Restoration Grant and Programme Support has been implemented
2/24/2019

43. Areas that require attention for improved performance
Metros are on accrual basis of accounting thus invoices are still being processed;
Unspent funds will be subjected to rollover processes in terms of Section 22 of DoRA (funds are committed);
A team comprised of Planning , project management unit and Finance undertake visits to Metros to verify that any unspent funds on identifiable projects are committed.

44. Recommendation
It is recommended that the Portfolio Committee notes the first quarter performance report.
2/24/2019

45. THANK YOU
2/24/2019