1. South Africa Works because of Public Works
Quarter 2 Report
2013/14
(Period July, August & September 2013)
Portfolio Committee on Public Works
29th January 2014
Cape Town
I Public Works I CGO I Pretoria

2. Layout Part A Performance Information Highlight/Achievement Challenges
Some Corrective Measures
Part B
Financial Information
DPW
PMTE

3. Purpose Purpose of the Presentation by the Department of Public Works
To reflect on the 2nd Quarter Performance and Financial information of the Department of Public Works in the financial year 2013/14 in order for the Portfolio Committee to advise on improving performance
Objective of the Portfolio Committee on Public Works
To have an understanding and measure the 2nd Quarter Performance and Financial performance of the Department for the financial year 2013/14.

4. Methodology of Assessing the Quarterly Reports
3 Phase Approach as per the Approved Department’s Policy Framework For Monitoring, Reporting and Evaluation of Performance Information 2013 and M&E Toolkit, PFMA and Framework for Strategic Plans and Annual Performance Plans
Phase 1 (Data Collection & Compliance) – 14th October 2013 – Submissions by all units
Phase 2 (Data Cleansing and Analysis) – 15th – 25th October 2013
Phase 3 (Accountability Process) – 28th – 31st October 2013
Key Focus
Adherence/Compliance to the Policy framework for monitoring, reporting and evaluation of performance information in the Department of Public Works
Effective use of the M&E toolkits to measure and judge progress (Actual versus Target) in order to learn, improve reporting, innovate and adapt to change
Encourage the use of quality performance information for decision making and resource management
Project the various related components of Performance Information (M&E System) - for example, the inputs, processes, activities, outputs, outcomes, and impacts that constitute projects, programmes, and services
To test the appropriateness of the indicators
To provide an assessment on the overall performance of the Department

5. Programme 1 Administration (Pages 6 – 40)
This programme serves to provide strategic leadership and support services, including for the accommodation needs and overall management of the Department of Public Works. It is responsive to meet strategic objective 6 of the Department of Public Works and has links with all four other departmental programmes.
Sub-Programmes
Internal Audit and Investigation Services
Strategic Management Unit
Monitoring and Evaluation
Intergovernmental Relations
Finance and Supply Chain Management
Corporate Services

6. Highlight/Achievement – Programme One: Administration
The sub-programmes are largely supportive in nature and play a critical role in enabling the core business of the Department to achieve its objectives.
Highlights/Achievements
Increased participation in governance structures (EXCO, Accountability EXCO, Audit and Risk Management Committee where decisions are taken and implementation plans are scrutinised for progress) – (IGR – pages )
Department’s supportive participation in the development of the 2014/15 Annual Performance Plan (APP) - A guiding document that shapes the strategic plans, operational and Risk champions trained to safeguard the Department’s exposure to risk elements (SMU – pages )
Assistance provided to Provincial Departments of Public Works in developing performance indicators as part of the Department’s roles and responsibilities on concurrent mandate. Some of the issues are discussed at MINMEC (M&E – pages )
Developed Supply Chain Management (SCM) Policy for better procurement, one of the key challenges facing the Department (Finance and SCM – pages )

7. Cont.
The Department held successful wellness with all regional offices and 9 other government departments – (Corporate Service – pages )
These Employee Health and Wellness programmes range from
Emotional
Substance abuse
Debt management
Awareness & education
Physical wellness
The Department also produced a Progress report on international human rights instrument on the mainstreaming of Gender/ Disability and Youth through recruitment, procurement, constitution of Committee and Job creation in all DPW programmes

8. Immovable Asset Management
Programme 2
Immovable Asset Management 
(Pages )
This programme is the largest programme of the Department of Public Works and appropriates at least 48 percent  of the departmental allocation budget. It provides for the management of government’s immovable property portfolio in support of Government’s social, economic, functional and political objectives. In line with the mandate of the Department of Public Works, this programme seeks to achieve the first four strategic objectives of the Department of Public Works
Sub-Programme
Strategic Asset Investment Analysis
Project and Professional Services
Inner-City Regeneration
Operations Management
Key Accounts management
Prestige Management

9. Programme Two: Immovable Asset Management
The strategic objective of this programme is to provide leadership in effective and efficient Immovable Asset Management and in the delivery of infrastructure programmes
Highlights/Achievements
Management of property debtors in terms of signed contract terms and conditions relevant legislation/regulations and policy were achieved. A total of 1516 property debtors were managed against the target of (Reg. Coordination – pages )
Full participation of other government departments in DPW’s workshops on User Asset Management Plans (U-AMPs). U-AMPs are tactical plans for managing an organisation's infrastructure and other assets to deliver an agreed standard of service (DRDLR and DHA) - (KAM – pages )
Prestige Policy that spells all the standards and norms in their operations to fulfil its mandate completed - (Prestige management – pages )

10. Cont.…
Department’s critical role in the development of precinct Development plans within the city of Tshwane. These plans include the West Capital and Paul Kruger Streep in Tshwane - (ICR – pages )

11. Expanded Public Works programme
(Pages 72 – 76)
Programme 3 ensures the creation of work opportunities and the provision of training for unskilled, marginalised and unemployed people in South Africa by coordinating the implementation of EPWP. This programme focuses predominantly on the achievement of strategic objective 4

12. Programme Three: EPWP EPWP plays a critical role of :
Promoting an enabling environment for the creation of short and sustainable work opportunities that eventually contribute to the national goal of job creation and poverty alleviation.
Providing technical support to Municipalities in planning and implementing labour-intensive projects.
Highlights/Achievements
In the second quarter significant progress was made by municipalities in reporting their progress to the Department enabling the Department to reflect on a definite figure about the performance of the programme - (EPWP – page 73)
Also, a large number of work opportunities were created with substantial improvements in the EPWP participation among designated groups - (EPWP – page 74)

13. Property & Construction Industry Policy Regulations
Programme 4
Property & Construction Industry Policy Regulations 
(Pages 77 – 81)
This programme promotes the growth and transformation of the construction and property industries, promote uniformity and best practice in construction and immovable asset management in the public sector. This programme contributes to the realisation of strategic objectives 2, 4 and 5

14. Programme 4: Property and Construction Policy
This programme ensures transformation and regulation of the Construction and Property industries to ensure economic growth and development.
It is a dependent programme and largely a process or chain-event driven in nature. It often experiences challenges such as delays in stakeholder feedback on particular policy and political considerations. Its function has a huge impact in the built environment.
Highlights/Achievements
Consultations held with key stakeholders and EXCO on Draft BEP Policy - (PCIPR – page 78)
Inputs consolidated and 2nd Draft Guideline developed on condition assessment for general buildings - (PCIPR – page )

15. Auxiliary and Associated Services
Programme 5
Auxiliary and Associated Services 
(Pages 82 – 83)
This programme provides for various services, including compensation for losses on the Government assisted housing scheme and assistance to organisations for the preservation of national memorials. Meet the protocol responsibilities for state functions.

16. Programme 5: Auxiliary and Associated Services
Highlights/Achievements
Infrastructure support provided to 4 planned & 6 unplanned Prestige Events - (AAS– page 83)
S/No
EVENT
VENUE 1.
National Consultative Forum on Mining.
SM Makgatho Presidential Guesthouse. 2.
Swearing-in Ceremony of newly appointed Ministers and Deputy Ministers. 3.
Official Funeral – Former Deputy Minister Swanson-Jacobs.
Cape Town. 4.
Memorial Service of Former Chief Justice Langa.
Durban. 5.
Official Funeral – Former Chief Justice Langa. 6.
Cabinet Meeting (Lekgotla). 7.
Sao Tome & Principe State Visit.
Union Buildings & SM Makgatho Presidential Guesthouse. 8.
President’s Breakfast with Media Houses’ Editors. 9.
President’s Meeting with Press Gallery Association.
Tuynhuys – Cape Town.
10.
Human Resource Development Council Meeting.

17. AREAS OF FOCUS (KEY CHALLENGES)
Capacity Constraints
Line function at planning in determining the required resources to feed into the HR Plan
SCM Processes
Delays experienced through the procurement processes
IT Constraints
Lack of integrated systems affecting data integrity, delays and security issues
Budget Constraints
Promote Performance based budgeting. A practice of developing budgets based on the relationship between program funding levels and expected results from that program

18. Remarks on Performance information
The Department takes into consideration the recommendations made by the oversight bodies such as the:
Portfolio Committee on Public Works, Parliament of South Africa
Auditor-General of South Africa
Audit and Risk management Committee.
The contributions by these bodies include ensuring that programmes/projects are effectively monitored towards achieving their goals and internal controls tightened to curb misconduct that may hamper service delivery
Throughout the financial year, while taking these contributions into account, the Department continues to find ways of improving in areas of concern and effectively contribute to service delivery

19. Financial Information
Part B
Financial Information
DPW
PMTE

20. CONTENT 1 Financial Performance Report 2013/14 DPW 2
Expenditure per Programme 3
Expenditure per Branch 4
Expenditure per Region 5
Earmarked expenditure 6.
Financial Performance Report 2013/14 PMTE

21. 1. Financial Performance Report 2013/14

22. Economic classification
Summary Expenditure per Economic Classification
Economic classification
Budget Allocation
Exp. as at 30 September
2013
% Spent as at 30 September
2012
R'000  %
Compensation of employees
48%
52%
Goods and services
37%
39%
Goods and services: Office Accommodation
22%
29%
Transfers and subsidies
53%
67%
Infrastructure
21%
23%
Machinery and equipment
32 873
30%
15%
Total
43%

23. Economic classification
Summary Expenditure per Programme
Economic classification
Budget Allocation
Exp. as at 30 September
2013
% Spent as at 30 September
2012
R'000
Prog 1. Administration
35%
34%
Prog 2. Immovable Asset
Management
42%
56%
Prog 3. Expanded Public
Works Programme
50%
51%
Prog 4. Property and
Construction Industry
Policy Regulation
39 182
19 786
41%
Prog 5. Auxiliary and
Associated Services
50 678
30 019
59%
109%
Total
43%
52%

24. Notes to the expenditure
The overall expenditure for the department as at the end of September is R2.7 billion and expenditure is equivalent to 43% of the total allocation. 7% less than the guideline of 50%
Compensation of employees’ expenditure for the month ended September is R707 million and the amount spent is equivalent to 48% of the total allocation.
Expenditure for compensation is in line within the guide line of 50%.
Future expenditure for Compensation is projected to increase higher than the guideline as advertised posts for professionals are being filled and performance bonuses are processed.
Goods and Services expenditure for the month ended September is R320 million and expenditure is equivalent to 37% of the total allocation.
Expenditure for Office Accommodation for the month ended September 2013 is R112 million, and expenditure is equivalent to 22% of the total allocation of R504 million.

25. Notes to the expenditure
Expenditure for transfers and subsidies for the end of September is R1.335 billion and expenditure is equivalent to 53% of the total allocation.
Transfers and subsidies expenditure of 53% relates to:
Council for the Built Environment R19 million
Commonwealth War Grave R18 million
CIDB R36 million
Aug Prop Man Trade Entity R341 million
EPWP Non-state Sector R230 million
EPWP Integrated Grant to Provinces R177 million
EPWP Integrated Grant to municipality R202 million
EPWP Social Sector R103 million
Independent Development Trust R50 million
Parliamentary Villages R8 million

26. Notes to the expenditure
Infrastructure expenditure for the end of September is R141 million and expenditure is equivalent to 21 % of the allocation of R676 million.
An amount of R200 million has been requested to be adjusted to compensation of employees and goods and services as part of the adjustment estimates.
The purpose of the adjustment is to finance the compensation of employees shortfall and goods and services for turnaround where roll over not being approved.
Machinery and equipment expenditure for the end of September is R30 million and expenditure is equivalent to 30% of the total allocation of R102 million .

27. 2. Expenditure per programme

28. Economic classification
Expenditure per Economic Classification: Programme 1
Economic classification
Budget Allocation
Exp. as at 30 September
2013
% Spent as at 30 September
2012
R'000
Compensation of employees
49%
47%
Goods and services
45%
34%
Goods and services: Office Accommodation
22%
29%
Transfers and subsidies
1 156
519
202%
Machinery and equipment
30 075
7 745
26%
44%
Total
35%

29. Notes to the expenditure
The total expenditure for Programme 1 is R404 million and expenditure is equivalent to 35 % of the allocation for the programme.
Current payments
Compensation of employees expenditure is R112 million and expenditure is equivalent to 49% and the expenditure is in line with the guideline of 50%.
Goods and services expenditure is R172 million and expenditure is equivalent to 45%.
Expenditure for Goods and services under Office Accommodation is at R112 million which is 22% of the total allocation of R504 million
Transfers and subsidies
Transfers and services expenditure for R and expenditure is equivalent to 45% of the allocated budget of R1.1 million
Payments for Capital Assets
Machinery and equipment expenditure is R7.7 million and expenditure is equivalent to 26% of the allocated budget of R30 million.

30. Economic classification
Expenditure per Economic classification: Programme
Economic classification
Budget Allocation
Exp. as at 30 September
2013
% Spent as at 30 September
2012
R'000
Compensation of employees
48%
54%
Goods and services
82 393
32%
47%
Transfers and subsidies
53%
74%
Infrastructure
21%
23%
Machinery and equipment
69 324
24 591
35% 9%
Total
42%
56%

31. Notes to the expenditure
The total expenditure for Programme 2 is R1.2 billion and expenditure is equivalent to 42% of the allocation for the programme.
Current payments
Compensation of employees expenditure is R539 million and expenditure is equivalent to 48%.
Goods and services expenditure is R82 million and expenditure is equivalent to 32%.
Transfers and subsidies
The expenditure for transfers and subsidies is R456 million and expenditure is equivalent to 53% of the allocated budget. With the exception of IDT and Parliamentary Village Management Board which have received full allocation, other entities have received 50% of the allocated budget
Payments for Capital Assets
Infrastructure expenditure for the end of September 2013 is R141 million and expenditure is equivalent to 21% of the allocation of R676 million.
Machinery and equipment expenditure is R24 million and expenditure is equivalent to 36% of the allocated budget of R69 million.

32. Economic classification
Expenditure per Economic classification: Programme 3
Economic classification
Budget Allocation
Exp. as at 30 September
2013
% Spent as at 30 September
2012
R'000
Compensation of employees
51 025
46%
49%
Goods and services
48 105
28%
Transfers and subsidies
52%
54%
Machinery and equipment
2 622
515
20%
53%
Total
51%

33. Notes to the expenditure
Total expenditure for programme three is R960 million and against the budget of R1.9 billion which is 49%
Current payments
Compensation of employees for programme three is R51 million and expenditure is equivalent 46%. Expenditure for compensation of employees is within the guideline of 50%.
Goods and services expenditure for the end of September is R48 million and expenditure is equivalent to 28% of the total allocation. Expenditure is below the guideline.
Transfers and subsidies
Transfers expenditures is R860 million against the budget of R1.6 billion which is 52%. Expenditure for transfers and subsidies is in line with the payment schedule.
Payment for Capital Assets
Machinery and equipment expenditure for Programme 3 is R and expenditure is equivalent to 20% of the allocated budget of R2.6 million.

34. Economic classification
Summary Expenditure per Economic Classification: Programme 4
Economic classification
Budget Allocation
Exp. as at 30 September
2013
% Spent as at 30 September
2012
R'000
Compensation of employees
13 311
4 387
33%
23%
Goods and services
25 509
4 952
19%
50%
Transfers and subsidies
200
10 398
5213% 0%
Machinery and equipment
125 22
17%
14%
Total
39 182
19 786
41%

35. Notes to the expenditure
Total expenditure for programme four is R20 million against the budget of R39 million which is equivalent to 50% of the allocated budget of R39 million.
Current Payment
Compensation of employees expenditure is R4.3 million and expenditure is equivalent to 33% of the total budget of R14 million.
Goods and services expenditure for September is R4.9 million and expenditure 19% of the allocated budget.
Transfers and subsidies
Transfers and subsidies expenditure is R10 million and expenditure is equivalent to 5213% of the allocated budget of R The high expenditure relates to the transfer to Agrement SA and expenditure is classified as irregular expenditure as the budget is classified under goods and services.
Payment for capital Assets
Expenditure for machinery and equipment R and expenditure is equivalent to 17% of the allocated budget of R

36. Economic classification
Summary Expenditure per Economic Classification: Programme 5
Economic classification
Budget Allocation
Exp. as at 30 September
2013
% Spent as at 30 September
2012
R'000
Goods and services
27 417
12 464
45%
156%
Transfers and subsidies
23 261
17 555
75% 0%
Total
50 678
30 019
59%
68%

37. Notes to the expenditure
Total expenditure for programme five is R30 million against the budget of R50 million which is equivalent to 59%.
Current Payment
Goods and services expenditure for the end of September is R12 million and expenditure is equivalent to 45% of the allocated budget of R27 million. Expenditure for goods and services relates to State Functions.
Transfers and subsidies
Expenditure for transfers and subsidies is R17 million and expenditure relates to payment made to the Commonwealth Wargraves Commission.
Transfers and subsides expenditure is equivalent to 75% of the allocation for transfers and subsidies.

38. 3. Summary Expenditure per Branch

39. Compensation of Employees
Budget and expenditure per branch
Branches
Compensation of Employees
Goods & Services
Budget
Exp. %
Exp
% Spent
R’000
Spent
Minister and Support
9 482
4 088
43%
12 000
2 987
25%
Deputy Minister and Support
5 000
2 168
4 500
1 402
31%
Asset Management
40 675
20 428
50%
5 582
2 504
45%
EPWP
49 706
23 749
48%
45 668
29%
Projects and Professional Services
66 200
32 859
12 700
5 353
42%
Policy Regulation
8 462
4 376
52%
7 770
4 948
64%
Inner City Regenerations
7 250
3 507
1 900
162 9%
KAM and Prestige
30 400
9 992
33%
2 900
478
16%
DG and Direct Reports
46 119
20 503
44%
11 800
5 399
46%
Regional Co –Ordination and Direct Reports
11 700
6 681
57%
5 620
2 545
Corporate Services
88 836
44 681
41 458
41%
Regions
49%
74 032
CFO
73 996
34 913
47%
26 700
7 099
27%

40. Budget and expenditure per branch
Branches
Household
Machinery and Equip
Budget
Exp. %
Exp
% Spent
R’000
Spent
Minister and Support 1 0%
1 450 45 3%
Deputy Minister and Support
700 11 2%
Asset Management 6
475
247
52%
EPWP
150 40
27%
2 672
181
12%
Projects and Professional Services 12
193
1608%
16 900
16 175
96%
Policy Regulation
200 27
13%
300 22 8%
Inner City Regeneration
104
103
99% 5
KAM and Prestige 55
100%
500 48
10%
DG and Direct Reports 2 21
1057%
1 800
178
Regional Co –Ordination and Direct Report 4
163
33%
Corporate Services
263
350
133%
31 170
7 347
24%
Regions
3 250
1 977
61%
36 030
8 281
23%
CFO 53 87
164%
2 900
183 6%

41. 4. Summary Expenditure per Region

42. Compensation of Employees
Budget and expenditure per Region
Branches
Compensation of Employees
Goods & Services
Budget
Exp. %
Exp
% Spent
R’000
Spent
Bloemfontein
87 299
42 123
48%
15 805
5 446
34%
Cape Town
90 889
51%
34 347
16 917
49%
Durban
62 405
21 105
10 437
Johannesburg
86 003
42 274
9 676
2 429
25%
Kimberley
53 266
23 362
44%
10 624
3 701
35%
Mmabatho
62,211
28 064
45%
10 444
5 443
52%
Nelspriut
55 265
25 942
47%
10 895
4 009
37%
Polokwane
71 598
34 274
10 534
4 617
Port Elizabeth
87 157
41 303
15 945
6 574
41%
Pretoria
82 119
53%
28 422
10 885
38%
Umthatha
48 301
21 676
9 542
3 570
TOTAL
74 032
42%

43. Budget and expenditure per Region
Branches
Household
Machinery and Equip
Budget
Exp. %
Exp
% Spent
R’000
Spent
Bloemfontein
150
243
162%
1 700
124 7%
Cape Town
900
361
40%
11 150
1 234
11%
Durban
500
252
50%
3 050
926
30%
Johannesburg
300
187
62%
1 520
521
34%
Kimberley
100 59
59%
1 300
309
24%
Mmabatho 19 9%
1 290
274
21%
Nelspriut 50
1 090
313
29%
Polokwane
173
346%
1 100
129
12%
Port Elizabeth
213
71%
1 650
529
32%
Pretoria
800
468
11 090
3 058
28%
Umthatha 0%
880
81%
TOTAL
3 250
1 977
61%
36 030
8 281
23%

44. 5. Earmarked Budget and Expenditure

45. Earmarked Budget and Expenditure
Budget
2013
% Spent as at 30 September 2013
R`000 % 
CIDB
72 316
36 180
50%
CBE
37 959
18 979
IDT (Bridging finance)
50 000
100%
Agrement SA Board
10 398
Parliamentary Villages
8 198
Aug of PMTE
EPWP Incentives to Provinces
63%
EPWP Incentives to Municipalities
40%
EPWP (Non-State sector)Operation
53%
EPWP Social Sector to Provinces

46. Earmarked Budget and Expenditure
Budget
2013
% Spent as at 30 September 2013
R`000
Office Accommodation
22%
DPW Infrastructure
21%
IDT Intermediaries
10 169
100%
Audit Fees: Financial Accounting
40 260
41 835
104%
Boundary Fencing
7 000 0%
State Functions
27 132
12 463
46%
CETA
2 750
Common Wealth War Grave
20 510
17 555
86%

47. PMTE: Financial Performance Report 2013/14

48. Financial Performance of the PMTE
Budget
Claimed to date
Actual Received/Paid
R’000
Revenue
7,605,471
3,656,104
State Accommodation Charges
3,671,713
1,871,886
1,851,282
Private Accommodation Charges
3,105,519
1,376,861
968,499
Management Fees (Municipal)
66 144
54 751
Augmentation
682,426
341,213
Expenditure
3,487,617
Cleaning & Gardening
81,138
Private Leases
1,674,024
Rehabilitation, Repair and Maintenance
1,382,597
Property Rates
349,129
Municipal Services (Arrears) 76
Other (Interest, etc.)
653
Deficit as at end of September 2013
( )
PMTE Bank Balance (Overdraft)
( ),

49. Projected under / (over) Exp
Expenditure Analysis of the PMTE
Allocation
Expenditure
% Exp
% Exp 12/13
Projection
Projected under / (over) Exp
R'000
Total Expenditure
7,784,398
3,487,617
45%
47%
8,086,600
-302,203
Cleaning and Gardening
235,000
81,138
35%
32%
162,277
72,723
Leasing (Private owned)
3,105,519
1,674,024
54%
3,348,049
-242,530
Maintenance
3,682,500
1,382,597
38%
48%
3,812,983
-130,483
Planned
2,449,292
792,573
52%
2,397,780
51,513
Rehabilitation
380,708
140,097
37%
515,349
-134,641
Day-to-Day
852,500
449,927
53%
899,854
-47,354
Municipal Services arrears - 76 0%
-76
Property Rates
761,379
349,129
46%
762,564
-1,185
Current
663,949
347,944
44%
Arrears
97,430
1,185 1%
163%
98,615
Other
653 8%
-653

50. Expenditure Analysis of the PMTE
Expenditure trends are lower than the previous year although projections by the executing units indicate a possible over-expenditure (less than 1% if Leases are taken out of the equation). This will be managed towards year-end to ensure no over-expenditure takes place.
Leasing expenditure is currently higher than the estimated budget for the year according to the information on our internal system. Regions have been requested to update the information to enable better forecasting. The estimated budget will be adjusted accordingly.
Revenue = expenditure at the end of the financial year as invoices are issued and money claimed based on the actual expenditure
Cleaning and Gardening are at 35% expenditure against budget.
This is due to longer term contracts only being finalised recently. The expenditure is expected to increase in the latter part of the financial year.

51. Expenditure Analysis of the PMTE
Expenditure against Planned Maintenance are lower than the guideline percentage of 50%
Plans are in place to ensure that all funding is spent by the end of the financial year.
Expenditure against Property Rates (46%) this is in line with the previous years trend. The average expenditure for this time of the financial year is 44%.

52. Accommodation Charges (State Owned) – Top 10 Clients
Devolved Funds
Invoiced
Amount Received
% Rec
Outstanding
R'000
Defence
1,086,466
543,233
100% -
SAPS
1,034,271
517,136
Correctional Services
874,151
437,076
Justice
312,642
156,321
Water Affairs
88,419
44,210
Health (Civitas)
36,029
18,015
50%
18,014
Agriculture, Forestry and Fisheries
65,285
32,643
Public Works
41,499
20,749
Labour
37,395
18,698
Home Affairs
31,826
15,913
Grand Total
3,571,954
1,822,008
1,803,994
99%

53. Accommodation Charges (State Owned)
99% of the amounts invoiced have already been received. (This represents 49% of the amount to be invoiced for the year).
Second quarter invoices were issued during July and third quarter invoices will be issued during October.
55% of the outstanding debt relates to the current year and is between 30 and 60 days.
Various client departments have had reductions in their baselines which will negatively affect the PMTE budget, as the devolved amounts have been reduced and therefore also the PMTE revenue stream.
Clients will be requested to confirm the budget allocated to them. Details of these reductions per Client will be presented next month
National Treasury has granted approval for the billing of state-owned accommodation charges on the basis of devolved budgets for the 2013/14 financial period. This will have a positive impact on revenue as clients were resistant to pay the invoices for fear of irregular expenditure without itemized billing.

54. Accommodation Charges (Private) – Top 10 Clients
Invoiced
Amount Received
% Rec
Outstanding
R'000
SA Police Service 79
93 987
Defence 99
624
Statistics SA
79 540
50 675 64
28 865
Justice and Constitutional Development
75 829
17 988 23
57 841
Water Affairs
75 087
70 347 94
4 740
Home Affairs
74 538
71 271 96
3 266
Rural Development and Land Reform
61 693
59 184
2 508
Labour (Excl Seta's)
59 822
7 727 13
52 095
Public Works: NPA for Justice (Devolution)
38 805 -
Correctional Services: Office Rentals
37 123
30 191 81
6 932
Grand Total
65%

55. Accommodation Charges (Private)
Total Invoiced amount issued for current year is R billion covering April 2013 to Aug 2013 only
Sept 2013 Invoices were issued during Oct 2013, therefore do not form part of the issued invoices by end of Sept 2013
The total amount received is R 1.2 billion and 20% of this amount is towards the prior year balance
70% of current year invoices were paid at the end of Sept 2013
Only 20% of prior year balance was paid at the end of Sept Meetings will be scheduled with Clients to collect outstanding amounts based on the reconstructed balances
Top ten clients represents 77% of all invoicing of the 52 clients.

56. Total Amount claimed (incl mgt fees)
Municipal Services – Top 10 Clients
Client
Total Amount claimed (incl mgt fees)
Amount Received
Man fee received
Outstanding
R'000
South African Police Service
9 786
Department of Public Works
98 840
63 823
3 039
35 017
Justice and Constitutional Dev
83 845
3 992
22 316
Labour
16 138
12 479
594
3 659
Home Affairs
19 532
16 030
763
3 502
Water Affairs
13 143
10 223
486
2 920
Arts and Culture
15 333
12 943
616
2 390
Agriculture
12 631
5 877
279
6 754
Statistics SA
12 733
11 252
535
1 481
National Prosecuting Authority
4 453
3 297
157
1 156
Grand Total
20 252

57. Municipal Services
All the claims for April to August have been issued.
Total claims issued for the current year amount to R1.389 billion including management fees.
The top 10 clients account for 96% of the claims issued.
65% of invoices issued to the top 10 clients have been recovered

58. PACE (Capital Infrastructure Budget) – All Clients
Invoiced
Amount Received
% Rec
Outstanding
R'000
SA Police Services 87
36 991
Correctional Services
86 374 73
31 155
Public Works 89
15 660
Arts and Culture
50 476
40 638 81
9 838
Justice and Constitutional Dev
49 997
46 257 93
3 739
Home Affairs
13 887
13 120 94
767
Defence
3 900
2 259 58
1 640
Labour
1 701
441 26
1 260
Higher Education and Training
268
Environmental Affairs
164
Agriculture, Forestry and Fisheries
224
100
Rural Dev and Land Affairs
572
505 88 66
Grand Total
85%

59. PACE Recoveries
Total Invoice amount issued for current year is R665 million covering April 2013 to Aug 2013 only (All 12 clients were taken into account)
Sept 2013 Invoices were issued during Oct 2013 therefore do not form part of the issued invoices by end of Sept 2013
Total amount received is R837 million and 33% of it was paid towards prior year balances
85% of current year invoices were paid at the end Sept 2013

60. Other Recoverable* - All Clients
Amount Claimed
Amount received
Outstanding Balance
R'000
Defence
94 739
73 451
Government Printing
6 313 -
Home Affairs 24
National Prosecuting Authority
2 076
Parliament
489
104
385
SA Police Services
814
509
305
Rural development
1 398
Statistics South Africa 4
Grand Total
97 428
81 880
* Infrastructure projects not included in Clients’ Capital budget allocation

61. Recoverable CA
All the claims from April 2013 until August 2013 have been issued for all the clients
Total invoices issued for the current year from April 2013 to August amount to R179 million
R97 million has been received towards these invoices.

62. Debtors Age Analysis Current 30 Days >60 Days Total 2013/14
Previous Years
Total
R’000
Accommodation (State Owned) -
20,605
16,958
37,563
Accommodation (Private)
170,328
70,727
167,307
408,361
941,229
1,349,591
Municipal Services
295,127
132,445
116,779
544,351
266,666
811,017
PACE
82,944
3,609
15,000
101,553
-26,496
75,057
Recoverable: CA
31,950
16,920
-15,067
33,803
458,557
492,360
580,349
223,701
304,624
1,108,674
1,656,914
2,765,588 %
52%
20%
28%

63. DPW Capital Budget Allocation Expenditure % Exp R'000 Departmental
Allocation
Expenditure
% Exp
R'000
Departmental
27 954
18%
Accessibility
25 000
4 016
16%
Dolomite Risk Management
10 587 9%
Land ports of Entry (BCOCC)
88 824
44%
Prestige
22 285
20%
Inner City Regeneration
63 000
9 830
Total
24%

64. DPW Capital
The 2013/2014 realigned allocations for Public Works were approved on 4 July 2013
A re-allocation was done during August to align the allocations with cash flows
There was an amount of R123 million that could not be allocated to projects currently on the Implementation Plan and it was decided to investigate the possibility of acquiring Ocean View Terrace before the end of the financial year as it has been identified before, but funding was not available
The overall expenditure for DPW is at 24%.

65. Client Capital Budget Allocation Expenditure % Exp R'000
Allocation
Expenditure
% Exp
R'000
Agriculture, Forestry and Fishing
6 994
224 3%
Arts & Culture
65 532
25%
Correctional Services
21%
Defence and Military Veterans
27 210
5 702
Health
152 0%
Higher Education
4 000
523
13%
Home Affairs
63 349
16 718
26%
Justice
63 309
23%
Labour
3 416
1 972
58%
Rural Development
7 653
624 8%
SA Police Service
41%
Total
29%

66. Client Capital Budget per Region
% of total budget
Allocation
Expenditure
R'000
Head Office 4%
96 136
26 046
Bloemfontein 8%
26 092
Cape Town
12%
79 342
Durban
24%
Johannesburg 6%
71 727
Kimberley 2%
36 718
14 346
Mmbatho 7%
25 491
Nelspruit 5%
3 164
Polowane
24 258
Port Elizabeth
16 720
Pretoria
19%
Umtata 1%
17 733
662
Total

67. Thank You
Department of Public Works (National ) Head Office: Public Works CGO Building Cnr Bosman and Madiba Pretoria Central Private Bag X65 Pretoria 0001 Website: