1. LIMPOPO DEPARTMENT OF PUBLIC WORKS PRESENTS
THE DEVOLUTION OF
PROPERTY
RATE FUND GRANT

2. PRESENTATION OUTLINE 1. INTRODUCTION
DATA ON TRENDS IN ALLOCATION, TRANSFERS
AND ACTUAL EXPENDITURE ON CONDITIONAL GRANTS
3. BRIEF ASSESSMENT ON DEPARTMENT’S MONITORING CAPACITY
4. CHALLENGES AND WAY FORWARD

3. 1. INTRODUCTION
The National Department of Public Works has been paying for some of the Rates and Taxes to various municipalities on immovable properties belonging to the Provincial Government, the bulk of which are schools.
The rest of the Provincial immovable properties, Rates and Taxes payments were paid in a scattered manner amongst Provincial Departments of Limpopo Government according to land use.

4. 1. INTRODUCTION
The 2008/09 budget and the MTEF period has an allocation of R12, ,00 as conditional grants to pay for municipal Rates & Taxes for function that were devolved from NDPW.
A list with properties has been provided from NDPW.

5. BACKGROUND
The Limpopo Department of Public Works engaged the National Department of Public Works and established that:
Only12 Municipalities out of 30 are currently billing for Rates and Taxes in the Province.
NDPW is using PMIS system & BAS.
PDPW adopted iE-Works system for the asset register and Municipal Rates and Taxes Module

6. DATA TRENDS IN ALLOCTION
The devolved function is on its first year of implementation and trends cannot be formed on limited data.
The collection of data for the coming years will afford PDPW mechanisms to extrapolate trends to assist in the budgetary process

7. TRANSFER AND EXPENDITURE
iE-Works has been adopted by PDPW. IE-Works Programme has been equipped with the necessary data to enable operators to pay the bills from municipalities.
Training was provided to officials responsible for payments to ensure that proper payments are processed as submitted by various municipalities.
Users have been allocated user id’s and passwords for the iE-Works system
Reports to be generated from the system and verified on BAS

8. TRANSFER AND EXPENDITURE (Contd.)
Transfer of Funds from National Treasury, to the Provincial Government of Limpopo Department of Public Works for the amount of R12,2m will be disbursed in tranches as follows:
August = 25% of the Budget
September = 25% of the Budget
October = 25% of the Budget
February = 25% of the Budget
This was confirmed by the GIAMA Technical Committee Workshop held on 21 August 2008 in Durban:
Expenditure for Quarter 1 is Nil, municipal valuation roll commensurate with their financial year (1st July)

9. DEPARTMENT’S MONITORING CAPACITY
The Department is presently capturing details of properties that have been devolved in the iE-Works. This will ensure Conditional Grants are utilised for devolved functions in terms of the submitted lists

10. CHALLENGES AND WAY FORWARD
Municipalities were informed that bills for devolved properties to be directed to the Department
Only 12 municipalities had been billing the National Department of Public Works, the rest have not come up with bills
Other municipalities will be called to a workshop to discuss the billing issue so that they can comply with the requirement
The dual system is a source of confusion to municipalities

11. LIMPOPO DEPARTMENT OF PUBLIC WORKS PRESENTS
INFRASTRUCTURE GRANT

12. PRESENTATION OUTLINE 1. INTRODUCTION
DATA ON TRENDS IN ALLOCATION, TRANSFERS
AND ACTUAL EXPENDITURE ON CONDITIONAL GRANTS
3. BRIEF ASSESSMENT ON DEPARTMENT’S MONITORING CAPACITY
4. CHALLENGES AND WAY FORWARD

13. INTRODUCTION CONTD
In terms of its legislative mandate, the Department of Public Works is mainly tasked with the provision and management of government land and buildings in the Province, as well as the management of poverty alleviation programmes. This includes amongst others, the following:
Management of the asset life cycle of immovable assets (both land and buildings) of the Provincial Government
Provide expert advise to all Provincial Departments on immovable assets
Facilitate and coordinate the provision of building infrastructure for client Departments
Coordination and implementation of Expended Public Works programme.
4/11/2019

14. INTRODUCTION CONTD
The Department seeks to position itself as a service provider to other Departments, rendering a service of excellence and relate directly to the PGDS in terms of planning, development and management of provincial infrastructure. However, the Department experiences a serious constrain in terms of financial and human resources to fulfil its mandate.
Current resources are under severe stress as a result of the additional work assigned to the Department, and the Department regards the Infrastructure Delivery Improvement Programme (IDIP) as a vehicle to resolve the challenges through the implementation of change processes invented by the IDIP intervention.
4/11/2019

15. BACKGROUND
The Limpopo Provincial Government instructed departments to plan ahead and submit IPMP’s to DPW annually in June for capital projects of the following year.
The arrangement affords the Department with time to properly plan and finalise the procurement process before the beginning of the financial year.
Following is a summary of projects implemented by Public Works during 08/09 financial year;

16. BACKGROUND
239 Capital projects for Education 08/09 Infrastructure Programme were planned in time and the procurement process was completed in Jan/Feb Payment for claims were already received in April 2008
In quarter 1, physical progress on 08/09 schools was 43% on average
Claims certified for payment amounted to R70,3 million in quarter 1

17. BACKGROUND
Capital projects for Health are mainly multi-year in nature and planning & design phases are more involved.
Physical progress on Health projects at the end of 1st quarter were;
Construction/upgrade of clinics - 74%, (R9,67m)
Mortuaries -77% (R6,05m)
Hospital revitalisation programme (6 hospitals) - 49% (R20,38m)
Staff accommodation - 56% (R1,8m)
EMS – 73% (R7,1m)
One stop centres - 60%, (R7,01M)
CBR – 20% (R1,56M)
TOTAL 1ST Quarter – R53,57m

18. BACKGROUND
Capital projects for other departments were on average 80% complete in the 1st quarter (R1,56m)
Departmental capital projects were on average 10% complete (R5,1mil)

19. DATA TRENDS IN ALLOCTION
Conditional Grants for infrastructure in the Departments of Education and Health & Social Development, has been showing an upward trend in terms of annual allocations.
On average, there is an increase of 23% in the allocation of 2008/09 compared to 2007/08.

20. TRANSFER AND EXPENDITURE
No funds are transferred between departments
Public Works manage the implementation of projects, monitor progress and recommend progress payments to Service Providers
Client Departments do the payments to Service Providers on recommendation of Public Works.
Public Works reports monthly to client departments on financial and physical progress on all implemented projects.

21. DEPARTMENT’S MONITORING CAPACITY
The TRACKER system was introduced under the IDIP programme to assist with the monitoring of the delivery of capital projects
This system is based on a spreadsheet which in itself has limitations in terms of reporting capabilities
Provincial Treasury is investigating the introduction of a Project Portfolio Management system on Provincial level to improve data storage, accessibility of information and reporting.

22. THE IDIP INTERVENTION
The Infrastructure Delivery Programme (IDIP) was introduced and sponsored by National Treasury in an attempt to improve Infrastructure delivery in the country. Limpopo Departments of Education, Health and Public Works agreed to implement IDIP in the respective Departments by signing the business cases in the beginning of 2006.
The implementation started in Public Works and Education in November 2006 with the appointment of Technical Assistants (T/A’s) in both Departments, followed by the appointment of a T/A in Health in November The purpose of the T/A’s is to assist the Departments with the implementation of the programme.
4/11/2019

23. IDIP INTERVENTION CONTD.
The IDIP intervention, which was planned as a three year intervention, has achieved the following since inception:
Establishment of an IDIP Governance structure in the Province
Assisted Education and Health in preparing 10 year Infrastructure Plans (IP)
Developed 3 year IPMP’s from the IP’s
Developed implementation plans (IPIP’s) for Public Works
Designed an improved Infrastructure Delivery Model to deal with infrastructure delivery in an effective and professional way
Developed a capacitation plan from the delivery model, which had the following outcomes:
4/11/2019

24. IDIP INTERVENTION CONTD.
Identification of gaps in the current capacity in the Department
Procurement of professional skills from outside to fill the gaps and to enhance the current in-house capacity, funded by the 4% DORA allowance (approval of funding by Provincial Treasury awaited)
Restructuring of the Project Management Unit to effectively manage infrastructure programmes
Capacitation of current staff through training programmes in project management skills
Recruitment of suitably qualified professionals as permanent staff members
Exit strategy for outsourced capacity after skills transfer.
4/11/2019

25. CHALLENGES AND WAY FORWARD
Obtaining of funds from Provincial Treasury to procure services of Build Environment Professionals
Implementation of the turn-around strategy
Building of permanent capacity in the Department
Implement best practice methodologies
Visible improved service to client Departments before the end of current financial year.