1. DEPARTMENTAL PERFORMANCE REPORT: APRIL- JUNE 2013
PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS
DIRECTOR-GENERAL: T ZULU

2. CONTENT
Departmental First Quarter Non-Financial Performance (April to June 2013)
Departmental Expenditure vs. Performance (Targets / Outcomes)
Communication and Outreach key
Delivery Agreement (Outcome 8)
Job Creation
Accreditation of Municipalities
Financial Matters
Challenges Experienced
Performance Improvement Plans / Remedial measures

3. OVERVIEW OF DEPARTMENTAL PERFORMANCE (APRIL TO JUNE 2013)
The overall achievement by the National Department of Human Settlements during the first quarter of 2013/2014 financial year is sixty five percent (65%).
Out of one hundred and eighteen (118) targets which were planned for the period under review, seventy seven (77) targets were achieved whilst forty one (41) targets were not achieved.

4. OVERALL DEPARTMENTAL NON-FINANCIAL PERFORMANCE (APRIL- JUNE 2013)

5. This is mainly due to the following challenges experienced by the Department:
Failure to deliver the required services as stated in the Service Level Agreement by SITA
Non-availability of suitable land for human settlements developments in Provinces
Insufficient active monitoring presence in Provinces and Metros to monitor and verify performance of HSDG and USDG expenditure and delivery

6. The department has taken the following steps in the filling of vacant posts:
The appointment at SMS level has been prioritized. This is done in order to ensure that non SMS appointments are done by their respective managers.
The status report on the vacancy rate is being presented at EMT level every week. This is where progress and challenges are being deliberated on.
All submissions on recruitment are being prioritized. This is done in order to ensure that the department does not loose potential candidates.
The department has signed an agreement with South African Qualifications Authority (SAQA) where the turnaround time on the verification of qualifications has been reduced to 2 days.
The officials in Human Resources unit are working extra hours in order to ensure that the recruitment process is successful. As a result 74% (155 out of 210) of vacant posts are already in the process of being filled.

7. The following are the Departmental Remedial measures to be put in place to improve performance:
Compulsory training on Bid specifications, evaluations and adjudication from the level of Assistant Director and upwards
Address challenges relating to inter -governmental collaborations as they impact on policy development processes and service delivery
Improve compliance by Provincial Departments and usefulness of HSS data
Sufficient monitoring presence in Provinces and Metros to reduce turnaround time in collection of information on performance
Approved guidelines to standardise and guide the implementation of PHP across the sector
Full scale implementation of the Departmental Auditor General Action Plan

8. Departmental Expenditure vs. Performance (Targets / Outcomes)
Branch
Final Allocation
Commitments
Expenditure
Variance %
Spent
Planned
Targets
Achieved
Variance/ Targets
Not achieved
% Achieved Targets
1: Administration
18% 27 20 7
74%
2: Human Settlements Delivery Frameworks
16% 5 15
25%
3: Human Settlements Strategy And Planning
17% 22 14 8
64%
4: Programme Management Unit 9% 13
62%
5: Office Of The Chief Financial Officer
11% 23 18
78%
6: Office Of The Chief Operations Officer
14% 12 1
92%
Total
118 77 41
65%

9. COMMUNICATION AND OUTREACH
Sanitation Week held in Ward 5 at Makhaza in Khayelitsha – 25 April 2013
Launched Walmer Link FLISP project – 09 May 2013
Community engagement on the Budget Vote in Du-Noon – 22 May 2013

10. OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS
Number of households provided with upgraded services as on 30 June 2013: households
Represents 47.0% of 2014 target
Including USDG: Increased to households
Represents 63.9% of 2014 target
Over same period Provinces delivered formal housing units to households in informal settlements

11. OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS
PROVINCE
2014
TARGET
DELIVERY APRIL TO JUNE 2013
TOTAL DELIVERY (30 JUNE 2013)
% OF TARGET EC
59 440
647
23 247
39.1 FS
26 400
920
19 116
72.4 GT
96 760
829
45 191
46.7
KZN
78 200
386
20 652
27.1 LP
31 200
20 624
66.1 MP
26 480
616
12 956
48.9 NC
9 320 90
11 829
126.8 NW
28 840 62
13 891
48.2 WC
45 360
694
20 560
45.3
TOTAL
4 244
47.0

12. OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS: USDG (30 JUNE 2013)
PROVINCE
HOUSING UNITS
SERVICES PROVIDED (SITES/WATER/ SANITATION)
RENTAL EC
5 144
14 975
470 FS
3 647
1 237 GT
18 383
179
KZN
8 654
18 372
735 WC
12 195
1 727
TOTAL
16 091
67 572
4 169

13. OUTCOME 8 UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)
PROVINCE
2014
TARGET
TOTAL DELIVERY (30 JUNE 2013)
INCLUDING USDG
% OF TARGET EC
59 440
38 222
64.3 FS
26 400
22 763
86.2 GT
96 760
63 574
65.7
KZN
78 200
39 024
51.2 LP
31 200
20 624
66.1 MP
26 480
12 956
48.9 NC
9 320
11 819
126.8 NW
28 840
13 891
48.2 WC
45 360
32 755
72.2
TOTAL
63.9

14. OUTCOME 8 INFORMAL SETTLEMENTS: PROVISION OF TOP STRUCTURES
PROVINCE
DELIVERY APRIL TO JUNE 2013
TOTAL DELIVERY (30 JUNE 2013) EC
764
22 665 FS
590
19 678 GT
3 487
58 385
KZN
1 463
30 942 LP 85
2 705 MP
950
11 788 NC
366
6 400 NW
1 250
19 027 WC
1 233
20 663
TOTAL
10 188
Although the main objective of Outcome is to provide residents in and from informal settlements with access to services, a total number of formal top structures were also delivered to residents in and from informal settlements that improved the quality of their lives. All of them previously lived in a shack with access to a low level of some basic services on sit or through shared facilities.

15. OUTCOME 8 NATIONAL UPGRADING SUPPORT PROGRAMME
NUSP is providing technical assistance or is in the process of appointing service providers to assist with upgrading strategies and plans or is in the process to determine assistance needs in the following cities/ municipalities:
EC: Buffalo City, Kouga, Elundini, Mhlonto and Mquma
FS: Categorisation and mapping under way in six NUSP Municipalities;
GT: Mogale City, City of Johannesburg, Ekurhuleni, City of Tshwane and Emfuleni;
KZN: Ladysmith, Newcastle, Mzundusi, Umhlathuze, Ethekweni and KwaDukuza;
LP: Developing of specific upgrading plans underway and additional 10 Municipalities identified for the same exercise;

16. OUTCOME 8 NATIONAL UPGRADING SUPPORT PROGRAMME
NUSP:
MP: Govan Mbeki, Thembisile, Emalahleni, Steve Tshwete: Lekoa.
NC: //Kara Hais, Gamagara, Ga-Segonyana, Phokwane, Sol Plaatje and Tsantsabane;
NW: Rustenburg, Madibeng, Tlokwe, Maquassi Hills and Kgetlengrivier. A further 8 settlements have been identified for assistance; and
WC: Drakenstein, COCT, Mossel Bay and George.

17. OUTCOME 8 INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION
PROVINCE
SOCIAL
CRU
INSTITUTIONAL
TOTAL DELIVERY
JUNE 2013
% OF 2014
TARGET
TOTAL DELIVERY AS AT 30 JUNE 2013
(including USDG) EC
2 521 74
2 595
21.8
3 065
25.8 FS
673
1 094
394
2 161
40.9
3 398
64.4 GT
5 335
5 033
10 368
53.6
10 547
54.5
KZN
6 576
518
732
7 826
51.4
8 561
56.2 LP
136
2.2 MP
104
687 47
838
15.8 NC 81
209
290
15.6 NW
2 400
470
2 870
49.8 WC
1 838
4 354
331
6 523
71.9
8 250
90.9
Total
19 447
12 373
1 787
33 607
42.0
37 776
47.2

18. OUTCOME 8 WELL-LOCATED AFFORDABLE RENTAL ACCOMMODATION
Restructuring Zones: 75 approved and 55 still under discussion
SHRA:
Completed Projects: 2143 units
Running Projects: units
Approved pipeline projects in various stages of planning: units
EC: LP: 3887
FS: MP: 710
GT: NC: 1573
KZN: NW: 1764
WC: 2330

19. OUTCOME 8 ACCREDITATION OF MUNICIPALITIES
Performance to date:
Level 1: 8 District Municipality/Municipalities;
Level 2: 8 Metros, 11 District Municipalities/Local Municipalities
Implementation Protocols concluded: 24 Municipalities
Assignment (Level 3 accreditation) of Metros: FFC response identified a number of operational issues that needed serious attention.
The target of signing the Executive Assignment Agreement was therefore changed to15 August The target date for the Premier’s proclamation is now 15 September 2013.

20. OUTCOME 8 OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN SETTLEMENTS DEVELOPMENT
Actual delivery:
ha of state land identified for assessment and
ha thereof assessed for suitability for release;
7 477,5 ha has been released (FS, GP,KZN,LP+NW)
Land released is well located for extension of existing settlements, land tenure upgrading, integrated development or GAP market
PHSD’s (private land acquired): ,9 ha
An additional 419,3 ha has been released by the Department of Rural Development and Land Reform
Two properties in Elias Motsoaledi Municipality measuring 523,3 ha submitted for approval to be released for upgrading of informal settlements

21. OUTCOME 8 OUTPUT 4: IMPROVED PROPERTY MARKET
Mortgage Default Insurance Scheme:
Concurrence from the National Treasury for MDI is still outstanding
Finance Linked Individual Subsidy:
Revised FLISP Policy implemented on 1 April 2012;
ABSA and Standard Bank signed a MOU with the NHFC. Three banks are now on board and actively supporting the implementation of the programme.
An amendment to the revised policy has been proposed to increase the value cap imposed on the policy in April 2012 in accordance to the escalation of the BER Index.
It is also proposed that the Section 1A and B of the Housing Act, Act 107 of 1997, be amended to replace the pre-emptive right with a more workable solution

22. OUTCOME 8 OUTPUT 4: IMPROVED PROPERTY MARKET Cont…..
Banks are using the pre-emptive right condition to not approve loan applications linked to FLISP subsidies;
NHFC has requested that the administration of FLISP be extended to the open market. An individual will therefore be allowed to approach a bank, obtain conditional loan approval and then approach the NHFC to apply for subsidy;
The above proposals are still under consideration
Total number of units delivered: 330 (Provincial) – NHFC: 110 households assisted
Long term fixed interest rate instrument
Planned for launching in 2014

23. OUTCOME 8 PERFORMANCE : DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED
TOTAL DELIVERY
% OF 2014 TARGET
NHFC (Mortgage Loans)
1 810
93.8
NHFC (Incremental Loans)
12 968
31.9
NHFC (Wholesale funding)
23 786
60.5
NHFC (Leverage)
35 068
274.2
RHLF
74.6
NURCHA
8 357
75.7

24. OUTCOME 8
Number of households provided with upgraded services: households (including USDG performance) - represents 57,5% of 2014 target;
Number of affordable rental accommodation delivered: units (including USDG funded units) – represents 54,7% of 2014 target;
Well located state land released to Municipalities for human settlements development: 7 477,5 ha;
Total number of loans granted to the affordable property market:

25. JOB CREATION
During the quarter, 6,664 serviced sited and 19,648 top structures were delivered.
This delivery translate to 9,437 job opportunities if the definition of a person employed for a period of one year is considered .
If a temporary employment is considered for only that three months the delivery for that quarter is estimated to have created 20,010 jobs during the construction phase.

26. ACCREDITATION OF MUNICIPALITIES Cont….
FFC review has been received and is favourable & paves way for the formal assignment process can proceed and has been work shopped with Provinces and Metros.
Consultation with all Provinces and Metros, bar the Eastern Cape and Nelson Mandela Bay Metro, have been undertaken to establish the required actions and time-frames towards the conclusion of the Signing of the executive agreement.

27. ACCREDITATION OF MUNICIPALITIES Cont……
Framework for the transfer of assets, liabilities, staff, and projects has been established to assist the Provinces and Metros post the signing of the assignment agreement
Assignment Task Teams constituted of provincial local government departments, Provincial Treasuries, Provincial SALGAs, Human Settlements departments and Metros are being established to oversee the assignment process in Provinces.

28. DEPARTMENTAL EXPENDITURE AND CONDITIONAL GRANTS: FIRST QUARTER 2013
FINANCIAL MATTERS
DEPARTMENTAL EXPENDITURE AND CONDITIONAL GRANTS: FIRST QUARTER 2013

29. Introductory Remarks cont,
The Department has been allocated a budget of
R28, 1 in 2013 financial year of which 16, 9 billion is directed to the Human Settlement Development Grant and 9, 1 billion representing an Urban Settlement Department Grant. The different catering for other programmes including the Rural Household Infrastructure Grant and the operational budget.
Within the allocation of 16, 9 billion is an earmarked allocation of 299 million for Disaster Relief Grant for disaster stricken areas

30. Introductory Remarks cont,
The HSDG together with the USDG seek to fund the establishment habitable, stable and sustainable human settlements for citizens to have access to social and economical amenities.
The HSDG is allocated to the approved business plans which categorises different programmes including the outcome 8 and National Priorities

31. Introductory Remarks cont,
This conditional grant and performance of the programmes are monitored in terms of the approved monitoring framework that is in line with the Government Wide Monitoring Framework.

32. 2013 MTEF ALLOCATION
Rand thousand
Medium term estimates
2013/14
2014/15
2015/16
Administration
422,399
426,948
445,106
Human Settlements Policy, Strategy and Planning
84,055
89,301
92,967
Programme Delivery Support
226,922
239,335
251,305
Housing Development Finance
27,377,087
29,450,583
31,957,214
Total
28,110,463
30,206,167
32,746,592
Grants and transfers to entities constitute 97% of the total allocation.

33. 2013 MTEF ALLOCATION: TRANSFER PAYMENTS
Rand thousand
Medium term estimates
2013/14
2014/15
2015/16
Human Settlements Development Grant
16,983,872
17,918,321
19,667,204
Urban Settlements Development Grant
9,076,906
10,334,684
10,699,773
Rural Households Infrastructure Grant
106,721
113,124
118,328
Housing Development Agency
97,497
101,047
104,615
National Urban Reconstruction and Housing Agency
100,000
Social Housing Regulatory Authority: Operational
32,151
33,480
35,020
Social Housing Regulatory Authority: Capital restructuring grant
904,103
867,543
1,248,400
Total
27,301,250
29,368,199
31,873,341

34. EXPENDITURE PER PROGRAMME: 30 JUNE 2013
Programmes
Final Allocation 1
Commitments 2
Expenditure 3
Variance = 1 - 3 %
Spent
1. Administration
422,399,000
56,395,570
75,942,535
346,456,465
18%
2. Human Settlements Policy, Strategy and Planning
84,055,000
2,643,434
14,608,842
69,446,158
17%
3. Programme Delivery Support
226,632,000
6,466,264
21,285,916
205,346,084 9%
4. Housing Development Finance
27,377,377,000
83,092,087
3,000,060,910
24,377,316,090
11%
Total
28,110,463,000
148,597,355
3,111,898,203
24,998,564,797

35. OPERATIONAL EXPENDITURE: 30 JUNE 2013
Programmes
Final Allocation
Commitments
Expenditure
Variance
% Spent
1. Administration
422,399,000
56,395,570
75,942,535
346,456,465
18%
2. Housing Policy, Research and Monitoring
83,005,000
2,643,434
14,608,842
68,396,158
3. Housing Planning and Delivery Support
219,168,000
6,466,264
20,458,984
198,709,016 9%
4. Housing Development Finance
76,127,000
858,319
10,730,910
65,396,090
14%
Total
800,699,000
66,363,587
121,741,271
678,957,729
15%
Note: Expenditure excludes all Transfer payments.

36. TRANSFER PAYMENTS 30 JUNE 2013
Total Allocation
Transferred
Variance
% Spent
Human Settlements Development Grant
16,983,872,000
2,940,582,000
14,043,290,000
17%
Urban Settlements Development Grant
9,076,906,000 - 0%
Rural Households Infrastructure Development
106,721,000
Social Housing Regulatory Authority: Operational
32,151,000
Social Housing Regulatory Authority: Capital Restructuring Grant
904,103,000
Housing Development Agency
97,497,000
48,748,000
48,749,000
50%
National Urban Reconstruction and Housing Agency
100,000,000
Nelson Mandela University
3,244,000
Bursaries Scheme
4,220,000
826,932
3,393,068
20%
UNHABITAT
1,050,000
Total
27,308,714,000
2,990,156,932
24,319,607,068
11%

37. STATUS OF NON TRANSFERS
Tranche/transfer payments for the Human Settlements Development
Grant in respect of April to June were not made to Limpopo ( R225)
and Mpumalanga (Total value is R305 million ).
Limpopo transfer was withheld as per National Treasury instruction.
Mpumalanga’s human settlements development business plan was considered but did not address Outcome 8 targets. It was referred back to the province for correction and resubmission. The revised business plan was received back and approved and the transfers have taken place in the beginning of July.

38. REASONS FOR UNDERSPENDING Cont….
In general what was and still of concern is the slow filling of vacancies due to delays experienced in qualification verification by the South African Qualifications Authority (SAQA) for posts already interviewed and the continued lack of office-space.
Special Investigation Unit (SIU) challenges of the SIU not providing the Department with invoices.
The leasing of additional office accommodation was not effective as issues were still not resolved with the Department of Public Works at that time
Slow implementation of the National Upgrading Support Programme.

39. REASONS FOR UNDERSPENDING Cont…..
The inability of SITA to provide resources at an adequate level to maintain the Housing Subsidy System (HSS) as stipulated in the SLA.

40. Dept Expenditure per Programme: 30 September 2013
Final Allocation 1
Commitments 2
Expenditure 3
Variance = 1 - 3 %
Spent
1. Administration
422,399,000
35%
2. Human Settlements Policy, Strategy and Planning
84,055,000
3. Programme Delivery Support
226,632,000
20%
4. Housing Development Finance
27,377,377,000
33%
Total
28,110,463,000

41. Transfer payments 30 September 2013
Total Allocation
Transferred
Variance
% Spent
Human Settlements Development Grant
16,983,872,000
45%
Urban Settlements Development Grant
9,076,906,000
11%
Rural Households Infrastructure Development
106,721,000 - 0%
Social Housing Regulatory Authority: Operational
32,151,000
Social Housing Regulatory Authority: Capital Restructuring Grant
904,103,000
28%
Housing Development Agency
97,497,000
50%
National Urban Reconstruction and Housing Agency
100,000,000
100%
Nelson Mandela University
3,244,000
Bursaries Scheme
4,220,000
62%
UNHABITAT
1,050,000
Total
27,308,714,000
33%

42. HUMAN SETTLEMENTS DEVELOPMENT GRANT 2013/14 ALLOCATION
Provinces
2013/14
R`000
Allocation other outcomes
Disaster Relief
Total Allocation
EASTERN CAPE
2,429,631
94,172
2,523,803
FREE STATE
1,047,691
73,245
1,120,936
GAUTENG
4,108,339 60
4,108,399
KWAZULU-NATAL
3,183,708
51,720
3,235,428
LIMPOPO
1,289,076
35,666
1,324,742
MPUMALANGA
1,123,734
598
1,124,332
NORTHERN CAPE
378,534
17,190
395,724
NORTH WEST
1,198,229
26,308
1,224,537
WESTERN CAPE
1,925,971 -
Total
16,684,913
298,959
16,983,872

43. HUMAN SETTLEMENTS DEVELOPMENT GRANT

44. HSDG Allocation cont: 80/20 Split
Provinces
2013/14
R`000
Total Allocation by province
Normal Project allocation
Outcome 8 allocation
Disaster Relief
EASTERN CAPE
2,523,803
1,979,716
449,915
94,172
FREE STATE
1,120,936
901,014
146,677
73,245
GAUTENG
4,108,399
3,116,973
991,366 60
KWAZULU-NATAL
3,235,428
2,617,245
566,462
51,720
LIMPOPO
1,324,742
816,955
472,121
35,666
MPUMALANGA
1,124,332
966,412
157,323
598
NORTHERN CAPE
395,724
325,539
52,995
17,190
NORTH WEST
1,224,537
1,030,477
167,752
26,308
WESTERN CAPE
1,925,971
1,593,599
332,372 -
Total
16,983,872
13,347,930
3,336,983
298,959

45. HSDG ALLOCATION cont : Outcome 8
Provinces
2013/14
R`000
Upgrading of Informal Settlements
Rental and Social Housing
Land
National Priority Program
EASTERN CAPE
145,778
170,074
24,296
109,767
FREE STATE
62,861
73,338
10,477 -
GAUTENG
246,500
287,584
41,083
416,198
KWAZULU-NATAL
191,022
222,860
31,837
120,743
LIMPOPO
77,345
90,235
12,891
291,651
MPUMALANGA
67,424
78,661
11,237
NORTHERN CAPE
22,712
26,497
3,785
NORTH WEST
71,894
83,876
11,982
WESTERN CAPE
115,558
134,818
19,260
62,736
Total
1,001,095
1,167,944
166,849

46. PRIORITY PROJECTS ALLOCATIONS
Province
Town
2013/14
EASTERN CAPE
Duncan Village
109,767
GAUTENG
Lufhereng
182,944
Diepsloot
91,472
Sweetwaters
45,736
Khutsong
96,046
Sub Total
416,198
KWAZULU-NATAL
Cornubia
120,743
LIMPOPO
Lephalale
291,651
WESTERN CAPE
Drommedaris
62,736
Total
1,001,095

47. HUMAN SETTLEMENTS DEVELOPMENT GRANT EXP: JUNE 2013
Provinces
DORA Allocation 2013/14
Funds withheld/ stopped
Year to date (1 April June 2013)
Transferred Funds
Spent by Provinces
Variance Spent vs Total Available
Unspent as % of Total Available
R'000 %
Eastern Cape
2,523,803 -
400,135
16%
322,069
13%
78,066
2,201,734
Free State
1,120,936
229,362
20%
90,547 8%
138,815
1,030,389
Gauteng
4,108,399
912,171
22%
614,238
15%
297,933
3,494,161
KwaZulu-Natal
3,235,428
677,183
21%
595,123
18%
82,060
2,640,305
Limpopo
1,324,742
224,971 0%
97,903 7%
(97,903)
1,226,839
Mpumalanga
1,124,332
320,621
77,893
(77,893)
1,046,439
Northern Cape
395,724
74,517
19%
61,840
12,677
333,884
North West
1,224,537
304,246
25%
275,602
23%
28,644
948,935
Western Cape
1,925,971
342,968
248,466
94,502
1,677,505
Total
16,983,872
545,592
2,940,582
17%
2,383,681
14%
556,901
14,600,191

48. DELIVERY AS AT 30 JUNE 2013 Province Annual Delivery Targets
Delivery Performance as at 30 June 2013
Sites (units)
Top Structure (units)
Total Delivery Targets
Total Delivery Performance
Eastern Cape
17,265
20,412
37,677
1,780
1,969
3,749
Free State
8,794
10,157
18,951
701
723
1,424
Gauteng
15,460
28,023
43,483
829
3,974
4,803
KwaZulu-Natal
10,018
26,682
36,700
692
5,614
6,306
Limpopo
4,901
17,552
22,453 85
1,367
1,452
Mpumalanga
1,000
14,287
15,287 -
1,583
Northern Cape
7,987
3,673
11,660 90
455
545
North West
5,053
15,230
20,283 9
2,451
2,460
Western Cape
6,642
11,802
18,444
694
1,233
1,927
Total
77,120
147,818
224,938
4,880
19,369
24,249

49. Human Settlements Development Grant
The total allocation in respect of the Human Settlements Development Grant for the 2013/14 financial year amounted to R16.9 billion and includes R299 million for the Disaster Relief allocation;
The total amount transferred to Provinces as at 30 June 2013 amounted to R2.941 billion, which represents 17% as projection of the total allocation;
Provinces spent R2.384 billion and this represents 14% of the total allocation and 86% of the projected figure;
The variance of R 556 million is carried over to the following month however it still lies in the Primary bank account of the province and is only accessible upon requests that align to the goods and services payable;

50. HSDG Cont. The North West Province spent the highest at 90.6%.
Of the R275.6 million spent, the Province delivered a total of units consisting of 71 serviced sites and top structures against an annual target of ;
KwaZulu-Natal spent 88% and delivered units consisting of 692 serviced sites and top structures against an annual target of
Northern Cape spent 83% and delivered 481 units consisting of 90 serviced sites and 391 top structures against an annual target of

51. HSDG Cont. The lowest spending Province is Free State at 39%.
Mpumalanga Province’s business plan was approved on 26 June 2013 and funds were only transferred in the beginning of July 2013, however the actual expenditure is R77.8 million. The Province delivered a total of top structures from an annual target set at units and nothing was reported on sites.

52. HSDG Cont.
Although the Limpopo Province’s business plan was approved. No funds were transferred to the Limpopo Province as per National Treasury instruction issued on 19th April 2013, however the Province reported spending of R97.9 million and managed to deliver a total of units consisting of 85 serviced sites and top structures from an annual target of units.

53. Delivery Performance 2013/14 (Apr – July) vs. Estimated Targets
Target based on data used in Dept Presentation
Note: 2013/14 delivery figures are up to end July 2013 and are preliminary.

54. Performance 1st quarter other milestones (Financial Interventions)
Delivery variables/milestones
Funds allocated
Expenditure 2013/14 R'000
R'000
FLISP
20,461
3,004
Rectification Programme
158,377
131,961
Opscap
179,611
99,219
Blocked Projects
22,861
2,239
Land Parcels
77,501
4,085
Other
318,635
112,708
Total
777,446
353,216

55. Challenges Challenges as per provinces: Department’s observations:
Slow procurement processes
Poor Cash flow management
Non-availability of suitable land for human settlements developments
Department’s observations:
Lack of credible pipeline of projects
Poor planning and/or execution of the plans have always been a problem
Performance reporting is not always in line with the Business plans and this may suggest that plans are being developed for compliance purposes

56. Interventions
Provinces and Municipalities to align all grants to ensure bulk infrastructure is in place before implementation of programmes and projects;
Provinces and Municipalities must develop and align programme and procurement plans
Feasibilties to ensure programme and project readiness.
Programme Management Units to be established and prioritised.
Provinces to utilise the HSS to administer and report on all human settlements delivery programme and processes.

57. Human Settlements Development Grant Expenditure: 30 September 2013 (PRELIM)
Provinces
Total Available
Year to Date 1 April 2013 to 30 September 2013
Transferred Funds
Spent by Provinces
Variance Spent vs Transferred
Variance Spent vs Total Available
Unspent as % of Total Available
R'000 %
Eastern Cape
2,523,803
996,012
39%
928,758
37%
67,254
1,595,045
63%
Free State
1,120,936
580,980
52%
233,669
21%
347,311
887,267
79%
Gauteng
4,108,399
2,072,499
50%
1,247,836
30%
824,663
2,860,563
70%
KwaZulu-Natal
3,235,428
1,515,478
47%
1,325,555
41%
189,923
1,909,873
59%
Limpopo
1,324,742 - 0%
157,102
12%
(157,102)
1,167,640
88%
Mpumalanga
1,124,332
555,185
49%
245,938
22%
309,247
878,394
78%
Northern Cape
395,724
164,341
42%
145,454
18,887
250,270
North West
1,224,537
655,168
54%
597,314
57,854
627,223
51%
Western Cape
1,925,971
1,093,923
57%
939,582
154,341
986,389
Total
16,983,872
7,633,586
45%
5,821,208
34%
1,812,378
11,162,664
66%

58. Delivery Performance as at 31 August 2013
Province
Annual Delivery Targets
Delivery Performance 31 August 2013
Variance Delivery sites
Variance Delivery Top Structure
Total Variance Delivery
Sites(units)
Top Structure(units)
Total Delivery Targets
Sites
Total Delivery Performance
Eastern Cape
17,265
20,412
37,677
3,214
3,589
6,803
14,051
16,823
30,874
Free State
8,794
10,157
18,951
2,190
1,222
3,412
6,604
8,935
15,539
Gauteng
15,460
28,023
43,483
829
8,553
9,382
14,631
19,470
34,101
KwaZulu-Natal
10,018
26,682
36,700
908
9,895
10,803
9,110
16,787
25,897
Limpopo
4,901
17,552
22,453 85
1,692
1,777
4,816
15,860
20,676
Mpumalanga
1,000
14,287
15,287
3,487
3,120
6,607
2,487
11,167
13,654
Northern Cape
7,987
3,673
11,660
139
860
999
7,848
2,813
10,661
North West
5,053
15,230
20,283 86
4,012
4,098
4,967
11,218
16,185
Western Cape
6,642
11,802
18,444
1,152
2,397
3,549
5,490
9,405
14,895
Total
77,120
147,818
224,938
12,090
35,340
47,430
65,030
112,478
177,508

59. Performance of other milestones

60. Urban Settlements Development Grant Expenditure: 30 June 2013

61. USDG Exp cont..

62. Non-Financial Performance - BCM
The 73% expenditure of the Metro was on the following:
9.32kms of roads have been tarred;
6.6kms of roads have been upgraded from gravel to surfaced;
68km of roads have been built;
347.53km of roads have been resurfaced;
501 stands have been serviced;
17 new water service points (taps) installed for informal settlements dwellers;
591 new households (RDP) have been provided with water connections;
160 new sanitation service points installed for informal settlements dwellers;
306 new households (RDP) have been provided with electricity connections;
254 street lights have been installed in new settlements.

63. USDG Exp cont..

64. Non-Financial Performance - NMBM
3 080 new subsidised houses were provided with water and sewer connections.
households with solid waste removal.
2 870 new erven connected to electricity.
351 area lights.
41 high mast.
4km of roads surfaced.
12km roads tarred.
3 512 households with permanent water and sanitation services.

65. Mangaung Municipality
Services
2012/13 Budget
% spent on available funds
variance
% of variance spent
R’000
Land parcels serviced
250,809
86%
35,420
14%
Kilometers of roads developed
59,141
77%
13,840
23%
Servicing of land for affordable housing
84,094
75%
20,848
25%
99,224
82%
18,159
18%
Community & Sport Facilities
44,233
59%
18,191
41%
Servicing of land for social / rental housing
8,500
43%
4,867
57%
Land parcels released for development
720
50%
358
Land parcels acquired from private sector
16,747
87%
2,135
13%
Upgrading of Informal Settlements
100 0%
100%
Disaster Management
500
Municipal land secured for development
10,288
53%
4,816
47%
Priorities addressed by City Plans
15,000
74%
3,867
26%
Compact City Strategy
1,052
Reduction of time for approvals
2,000
83%
342
17%
% of capital budget financed through cash
20,000
80%
4,009
20%
Electricity
2,137
309%
-4,467
-209%
Total
614,545
122,985

66. Non-Financial Performance - Mangaung
households were provided with bulk water and sanitation.
292 households assisted with VIP toilets.
20km of roads surfaced.
2.8km roads graveled.
households were connected to electricity.
2 Landfills sites were services.
3 new townships established.

67. CITY OF JOBURG MUNICIPALITY
Services
2012/13 Adjusted Budget
Total Expenditure
% Spent on Available funds
Variance
% of Variance
R’000
Formalisation of Informal Settlements
19,502
100%
Bulk Infrastructure:
Water, Electriciyt, Roads & Stormwater
1,009,523
988,111
98%
21,412
Street Lighting
88,000
Mixed Rental / Hostel Upgrade
51,742
47,542
92%
4,200
Land Acquisition
54,720
Upgradeof Community Hall, Libraries, & Sport fields
41,700
40,500
97%
1,200
Upgrade of Clinics
27,000
25,681
95%
1,319
Upgrade of Landfills
35,000
18,734
54%
16,266
upgrade of Parks
40,000
39,842
158
Total
1,367,187
1,322,632
44,555

68. Non-financial Performance – City of Johannesburg
4 055 units in informal settlements upgraded.
3 110 households provided with water services.
3 043 households provided with sanitation services.
570 VIPs provided.
1 532 households connected with electricity.
3 205 street lights provided.
2km roads surfaced.
8km road gravelled.
1 clinic built.

69. USDG Exp cont..

70. Non-Financial Performance - Ekurhuleni
6 748 housing units in informal settlements have been upgraded.
3 360 housing sites serviced.
61 hectares of land parcels acquired.
612 households connected with electricity.
49 high mast lighting provided.
7 850 street lights replaced.

71. USDG Exp cont..

72. Non-financial Performance – eThekwini
2 762 units provided with fully subsidised houses.
4 019 households provided with bulk sanitation.
2 ablution facilities provided in informal settlements.
2 129 households provided with water connections.
4 019 households provided with electricity connections.

73. City of Cape Town Municipality
Departments
2012/13 Adjusted Budget
Total Expenditure
% of spending
Variance
Electricity
175,807
170,873
97%
4,934
Solid Waste Services
50,000
100%
Water Services
195,836
171,295
87%
24,541
Parks
33,530
32,625
905
Sport, Recreation and Amenities
70,401
70,330 71
Library and Information Services
1,840 0%
Roads and Stormwater
213,343
203,182
95%
10,161
Transport
2,376
1,532
64%
844
City Health
10,700
10,545
99%
155
Existing Settlements
26,508
16,404
62%
10,104
New Settlements
158,478
144,924
91%
13,554
Land and Forward Planning
24,855
18,359
74%
6,496
Urbanisation (incl in-situ upgrades)
21,029
19,255
92%
1,774
Urban Renewal Programme
1,650
1149
70%
501
Social and ECD
922
890 32
Total Capital
987,275
911,363
75,912
Pre-planning & Project Management Fees
32,074
29,097
2,977
Province Allocation
23,500
36111
154%
-12,611
Total
1,042,849
976,571
94%
66,278

74. Non-financial Performance – City of Cape Town
6 394 sites serviced.
204 households provided with solid waste removal.
446 households connected with electricity.
626 taps provided.
8 035 VIP toilets provided.

75. USDG Exp at 30 September 2013 (Prelim)..

76. Interventions
Letters were written to National Treasury, BCM and Mangaung informing them of the intention to withhold the first tranche payment of BCM and Mangaung.
PMU has conducted project readiness in order to identify projects pipelines ready for implementation in order to re-allocate unspent funds where there is a need.
The Department visited EC province and BCM to discuss the under spending by BCM. Projects were assessed for readiness in order to ensure that there is no under spending.

77. Interventions
Meeting with Mangaung on 09 September 2013 discussing the performance and the future of the withheld transfer.
The quarterly performance reviews are conducted with the Metros.
The Department has entered into a Memorandum of Understanding with the City Support Programme to assist with capacity constraints where needed.

78. Interventions The Performance Matrix were sent to the Metros.
Definition of indicators were finalized and sent to the Metros.
Engagements on the finalization of the USDG policy.

79. PERFORMANCE IMPROVEMENT / REMEDIAL MEASURES
Integration of planning, risk management, budgeting and reporting processes.
Development of prolonged multi-media campaign.
Compulsory training on Bid specifications, evaluations and adjudication from the level of Assistant Director and upwards
Address challenges relating to inter -governmental collaborations as they impact on policy development processes and service delivery
Development and implementation of appropriate systems and controls to monitor contracts performance

80. PERFORMANCE IMPROVEMENT / REMEDIAL MEASURES
Improve compliance by Provincial Departments and usefulness of HSS data
Provision of capacity where required (e.g. a fully functional International Relations Directorate and IGR and Stakeholder Forums co-ordination unit).
Sufficient monitoring presence in Provinces and Metros to reduce turnaround time in collection of information on performance
Approved guidelines to standardise and guide the implementation of PHP across the sector

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