1. DEPARTMENTAL PERFORMANCE REPORT : APRIL – JUNE 2011
PORTFOLIO COMMITTEE FOR HUMAN SETTLEMENTS

2. CONTENT Annual performance monitoring Overall Departmental performance
3. Communication and Outreach key
4. Delivery Agreement - Outcome 8
Job Creation
6. Accreditation of Municipalities
7. Turnaround Strategy
8. Entities performance
Matters for action and redress
Delivery performance
Financial issues

3. VISION “A NATION HOUSED IN SUSTAINABLE HUMAN SETLLEMENTS WITH ACCESS TO SOCIO – ECONOMIC INFRASTRUCTURE” MISSION “ TO ESTABLISH & FACILITATE A SUSTAINABLE PROCESS THAT PROVIDES EQUITABLE ACCESS TO ADEQUATE HOUSING FOR ALL WITHIN THE CONTEXT OF AFFORDABILITY OF HOUSING, SERVICES, ACCESS TO SOCIAL AMENITIES & ECONOMIC OPPORTUNITIES”

4. ANNUAL PERFORMANCE PLAN MONITORING
APRIL – JUNE 2011
PROGRAMME/SUB-PROGRAMME
TOTAL APPROVED TARGETS
TARGETS ACHIEVED
Total and (%)
TARGETS NOT ACHIEVED
DG’s Office 37
18 (49)
19(51)
Corporate Services 33
14 (42)
19 (58)
Housing Policy, Research and Monitoring 20
15(75)
5(25)
Housing Planning and Delivery Support
124
43(35)
81(65)
Housing Development Finance 27
23(85)
4(15)
Strategic Relations And Governance 57
49(86)
8(14)
National Department Of Human Settlements
298
162(54)
136(46)

5. OVERALL DEPARTMENTAL PERFORMANCE : APRIL – JUNE 2011

6. COMMUNICATION AND OUTREACH KEY
Date
Municipality
Venue
Nature 1
11 May
Seshego - Polokwane
Limpopo
Community Residential Units at Seshego
House Hand over of Community Residential Units 2
12 May
Mitchells plain, Cape Town
Morgens Village Site
Morgan’s Village III Launch 3
09 June
Molemole Municipality Limpopo
Ga-Madikana and New Stands
To commemorate the 1976 Youth Uprisings Every year, a Youth Build is undertaken as part of the Youth month programme which is celebrated in June every year. 4
18 July
Cape Town, Western Cape
Legacy Project, Conifers Blue Downs, Cape Town
Legacy Project Launch by Minister on the 18th July Coincide with Mandela Day. Downs.

7. COMMUNICATION AND OUTREACH KEY
Date
Municipality
Venue
Nature 5.
21-22 July
Olive Convention Centre, Durban
KZN
Provide a platform for broad consultation on Departmental Youth Programme
To solicit inputs from youth sector stakeholders on the human settlements 2030 vision 6.
21 July
Lake Haven Project Launch and Youth Summit 7.
01-18 August
Free State
Women’s Build and launch of Brandwag Social Housing Project 8.
12 August
Hand over Houses built by Afrisam 9.
23 August
Northern Cape
Hand over houses in China Square built by Women Contractors

8. COMMUNICATION AND OUTREACH KEY
Budget Vote 2011/12 on the 22 April 2011.
Freedom Day – The Department participated and supported in the National Freedom Day celebrations 27 April 2011.
Dromedaries Launch - Minister also launched the project in Du Noon in Cape Town.
4. Youth Build Limpopo – Minister Sexwale and MEC Lekganyane handed over 76 houses in commemoration of the 1976 Youth on the 07th June 2011.

9. DELIVERY AGREEMENT OUTCOME 8
OUTPUT
PROGRESS
Accelerated delivery of housing opportunities
NUSP performing well and delivered serviced sites against a target of serviced sites for 2010/2011.
Total of rental units delivered in the Social Housing (100%), Institutional Subsidy Programme (172.3%) and CRU programme (110.9%)
Access to basic services
Water – 95%
Sanitations – 82%
Refuse removal – 71.3%
Electricity – 96%
SHS& Basic Services Task Team established to review and revise norms and standards.
Efficient utilisation of land for human settlements
Total of 4 944,5 ha of land acquired by Provincial Human Settlements Departments and the HDA acquired 309 properties representing 812,8 ha.
5. Improved property market
Establishment of Mortgage Default Insurance (MDI) approved by NHFC and shareholders and interest of commercial banks confirmed. The revisions of FLISP policy completed for approval.

10. DELIVERY AGREEMENT OUTCOME 8
MATTERS REQUIRING ATTENTION AND ACTIONS:
Output 1: Improved technical support and capacity buidling to municipalities and provinces by NUSP.
Output 2: Uniform norms and standards for basic services and human settlements service standards provided at municipal and provincial spheres. The Human Settlements & Basic Services Task Team is addressing this matter.
Output 3: Policy approval, coordination and implementation at provincial and municipal spheres of higher densities.
Output 4: MDI only address 30% of target and DFIs another 20%, leaving 50% unresolved. The DFI performances should be enhanced by picking institutions and associated product lines that perform exceptionally well and channelling additional funding and capacity towards these “winners”.

11. DELIVERY AGREEMENT OUTCOME 8
INSTITUTIONAL IMPLEMENTATION PROCESSES
Technical Human Settlements Implementation Forum and Human Settlement Implementation Forum are convened & considered and approve the POA Reports for Outcome 8
The POA report is finalised in consultation with Provincial Human Settlement Departments, Housing Entities, as well as the Departments of Public Enterprises, Public Works, Rural Development and Land Reform, and Cooperative Governance.
The Sustainable Human Settlements and Basic Services Task Team has been established to provide policy and implementation support to Outcome 8.
There will be Delivery Agreements to be entered into with relevant municipalities for the implementation of Outcome 8

12. JOB CREATION
The Department has developed a model to measure and report on job creation.
2. The model covers the entire delivery chain of human settlements development and measures direct, indirect and induced job creation.
4 The model results shows that the Department, based on delivery figures has created 14,868 direct jobs during construction as well as  7,510 indirect jobs which totals 22,378 job opportunities.

13. ACCREDITATION OF MUNICIPALITIES
The preparations have been completed for the assessment of the next round of municipalities for accreditation and includes Polokwane, Emahlahleni, Mangaung and Buffalo City.
Post-accreditation support is being provided and ongoing for the transition, transfer and delegation of housing functions to provinces and the eight municipalities provided with compliance certificates.
The National Accreditation Assessment Panel has commenced work in the various provinces and municipalities. .

14. TURNAROUND STRATEGY
The Department has completed its Turnaround Strategy, and will be presented to the Portfolio Committee in the near future.
The necessary submissions for approval by Department of Public Service and Administration have been completed.
During the period under review the drafting of the organogram and job evaluations commenced.
The processes to establish the Programme Management Unit has commenced, and it forms part of the new organogram.

15. ENTITIES PERFORMANCE HOUSING DEVELOPMENT AGENCY
A total of hectares of state land have been identified for evaluation.
30 pre-acquisition feasibility assessments were commenced.
The evaluation of 6692 Transnet properties were commissioned.
A request submitted to Transnet for the 309 properties totalling hectares.
A total of 175 hectares and two propoerties acquired from Servcon.
A multipurpose community centre in Port Elizabeth, part of the Zanemvula was completed. .

16. ENTITIES PERFORMANCE SOCIAL HOUSING REGISTRATION AUTHORITY
A total of 18 Social Housing Institutions were accredited for the 2011/12 financial year during the period under review and an intervention grant approved for one institution.
The compliance monitoring of all accredited SHIs completed.
The draft Regulations updated and presented to the Department.
The calls for proposals for the SHIP 2 and assessments for the 2011/12 financial year was concluded.
Five projects were approved in Kwa Zulu Natal, Free State, Western Cape and Gauteng provinces. The number of units in the approved projects for the first quarter is 2347 which exceeds the annual target of 1712 by 37 percent or 635 units. .

17. ENTITIES PERFORMANCE NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY
The value of loans has achieved in the quarter under review - the target was R29.560m and R30.588m. was advanced for Subsidy Housing Programme
A total of 7 contracts were signed in the first quarter in the for the subsidy housing programme
The value of projects in the subsidy housing programme achieved 88% totalling R m.
A total of 8 projects were completed against a target of 9 for the Infrastructure and Community Facilities
A total of 1244 houses were financed for construction in the subsidy housing programme. .

18. ENTITIES PERFORMANCE RURAL HOUSING LOAN FUND
The total number of new loans for the quarter was 8801
The RHLF made cash disbursements of R12,5million to its intermediaries excluding mezzanine funding.
The total disbursements to provinces was R47.296m including mezzanine funding.
A total of 56.8% of loans disbursed in the period was to households with an income of less than R3500 per month.
Of the loans disbursed 79.4% were to households in non metropolitan areas .

19. NATIONAL HOME BUILDERS REGISTRATION COUNCIL
ENTITIES PERFORMANCE
NATIONAL HOME BUILDERS REGISTRATION COUNCIL
A total of 631 new registrations were completed with a target of 700 – A variance of 10%.
A total of 2,523 renewals completed against a target of 3,000 – A variance of 16%.
A total of 8,939 enrolments compared to a target of 7,297 – A variance of 23%.
Late Enrolment of Houses – 167 against a target of 450.
A total of 102 complaints received and 18 were closed.
An average inspection ratio of 2.7 against an expected ratio of 4.0.
The submissions target for the quarter was 26,438 actual performance was 29,159 units. The variance is due to high volumes of submissions from KZN and Eastern Cape provinces. .

20. ENTITIES PERFORMANCE NATIONAL HOUSING FINANCE CORPORATION
During the period under review work progressed to activate the Mortgage Default Insurance including submissions to Treasury for approvals as well as submission of a Cabinet memorandum for approval by Cabinet.
The process to sell the retail book commenced.
A total amount of R354 million in approvals were processed during the period and projects to the value of R1.058bn are in the currently in the approval pipeline.
The total funding impact was R373 million for the first quarter against a target of R537 million.
The total developmental impact was 4478 units benefitting people and approximately 878 jobs created. .

21. MATTERS FOR ACTION AND REDRESS
The Department recognizes the need to improve capacity for monitoring and oversight both internally and externally – In the revised organizational structure the Programme Management Unit is a Branch with monitoring and intervention as a key component
A need has been identified to implement an electronic performance management system to ensure steps taken to redress the less than satisfactory programme performance and necessary bids invited

22. MATTERS FOR ACTION AND REDRESS
The Department has noted the negative variances in the provincial performance against approved business plans and the provinces have been requested to provide explanations and mitigation measures – Provincial oversights are being conducted by the Department to key Provinces for intervention.
The internal focus of the Department programmes negates it role as the sector leader for human settlements development – A Branch for Strategy and Planning is to be established.

23. ALLOCATION PER PROGRAMME
Revised estimate
Medium term estimates
Rand thousand
2010/11
2011/12
2012/13
2013/14
Administration
211,997
232,435
238,380
252,392
Housing Policy, Research and Monitoring
47,686
39,215
46,633
44,035
Housing Planning and Delivery Support
225,221
156,163
178,520
223,773
Housing Development Finance
18,663,357
21,995,147
24,253,309
25,947,289
Strategic Relations and Governance
157,660
155,535
158,215
207,250
Total
19,305,921
22,578,495
24,875,057
26,674,739

24. ALLOCATION PER ECONOMIC CLASSIFICATION
Revised estimate
Medium term estimates
Rand thousand
2010/11
2011/12
2012/13
2013/14
Compensation of employees
289,006
319,004
331,890
346,841
Goods and services
337,431
322,670
350,577
441,024
Interest and rent on land
485
530
Transfers and subsidies
18,506,924
21,700,605
23,707,976
25,364,438
Payments for capital assets
172,075
235,686
484,084
521,906
Total Payments
19,305,921
22,578,495
24,875,057
26,674,739

25. EXPENDITURE PER PROGRAMME - 30 JUNE 2011
Programmes
Expenditure
Total
Allocation
Variance
% Spent
1. Administration
25,320,053
232,435,000
207,114,947
11%
2. Housing Policy, Research and Monitoring
7,815,871
39,215,000
31,399,129
20%
3. Housing Planning and Delivery Support
27,596,939
156,163,000
128,566,061
18%
4. Housing Development Finance
3,869,901,136
21,995,147,000
18,125,245,864
5. Strategic Relations and Governance
15,431,327
155,535,000
140,103,673
10%
3,946,065,326
22,578,495,000
18,632,429,674
17%

26. EXPENDITURE PER CLASSIFICATION - 30 JUNE 2011
Economic Classification
Expenditure
Total Allocation
Variance
% Spent
Compensation of employees
57,265,492
309,860,000
252,594,508
18%
Goods and services
26,130,241
326,913,000
300,782,759 8%
Comprises of:
Administrative Fees
59,212
722,000
662,788
Advertising
541,861
14,606,090
14,064,229 4%
Assets less R5 000
181,648
5,345,010
5,163,362 3%
Audit cost: External
1,413,899
6,989,000
5,575,101
20%
Bursaries (employees)
127,699
2,198,500
2,070,801 6%
Catering: Departmental activities
629,488
3,065,700
2,436,212
21%
Communication
1,811,887
11,527,376
9,715,489
16%
Computer services
1,028,051
58,488,444
57,460,393 2%
Consultants and professional service: Business and advisory service
5,541,415
103,370,800
97,829,385 5%
Consultants and professional service: Legal cost
714,018
1,509,000
794,982
47%
Contractors
644,241
4,135,816
3,491,575
Agency and support / outsourced services
175,001
6,645,000
6,469,999
Entertainment
30,786
1,072,082
1,041,296

27. Economic Classification
Expenditure
Total Allocation
Variance
% Spent
Inventory
835,246
11,013,798
10,178,552 8%
Lease payments
532,791
35,077,000
34,544,209 2%
Property payments
288,840
2,453,000
2,164,160
12%
Travel and subsistence
8,331,742
39,282,684
30,950,942
21%
Training and development
284,304
4,917,582
4,633,278 6%
Operating expenditure
478,657
8,960,556
8,481,899 5%
Venues and facilities
2,479,455
5,533,562
3,054,107
45%
Interest Paid Financial Leases
71,039
879,000
807,961
Payments For Financial Assets
300
10,000
9,700 3%
Transfers and Subsidies
3,858,522,392
21,700,605,000
17,842,082,608
18%
Provincial and Local Governments
3,528,147,000
21,208,514,000
17,680,367,000
17%
Departmental Agencies & Accounts
327,730,000
487,091,000
159,361,000
67%
Foreign Gov & International Organ
1,000,000 0%
Public Corporation & Private Enterprise
Households
2,645,392
4,000,000
1,354,608
66%
Payment for Capital Assets
4,075,862
240,228,000
236,152,138
Building & Other Fix Structure
3,949,413
231,500,000
227,550,587
Machinery and equipment
126,449
8,503,000
8,376,551 1%
Software & Intangible Assets
225,000
Total
3,946,065,326
22,578,495,000
18,632,429,674

28. OPERATIONAL EXPENDITURE
Programmes
Expenditure
Total Allocation
Variance %
Spent
1. Administration
25,320,053
232,435,000
207,114,947
11%
2. Housing Policy, Research and Monitoring
7,815,871
39,215,000
31,399,129
20%
3. Housing Planning and Delivery Support
27,596,939
156,163,000
128,566,061
18%
4. Housing Development Finance
10,074,723
68,042,000
57,967,277
15%
5. Strategic Relations and Governance
15,431,327
155,535,000
140,103,673
10%
Total
86,238,913
651,390,000
565,151,087
13%
Note: Expenditure excludes Grants and Departmental Agencies.

29. DETAIL OF TRANSFER PAYMENTS
Expenditure
Budget
Variance
% Spent
Human Settlements Development Grant
3,528,147,000
14,941,516,000
11,413,369,000
24%
Rural Households Infrastructure Development
3,949,413
231,500,000
227,550,587 2%
Urban Settlements Development Grant -
6,266,998,000 0%
Social Housing Regulatory Authority: Operational
19,305,000
Rural Housing Loan Fund
49,500,000
Housing Development Agency
26,730,000
89,100,000
62,370,000
30%
National Urban Reconstruction and Housing Agency
100,000,000
100%
Social Housing Foundation
3,018,000
Social Housing Regulatory Authority: Capital Restructuring Grant
201,000,000
226,168,000
25,168,000
89%
Total
3,658,826,413
21,927,105,000
18,067,278,587
17%

30. EXPENDITURE PER PROGRAMME - 31 JULY 2011
Programmes
Total Allocation 1
Expenditure 2
Variance
=2 - 1
% Spent
1. Administration
34,890,972
232,435,000
197,544,028
15%
2. Housing Policy, Research and Monitoring
11,232,952
39,215,000
27,982,048
29%
3. Housing Planning and Delivery Support
43,451,073
156,163,000
112,711,927
28%
4. Housing Development Finance
7,361,742,835
21,995,147,000
14,633,404,165
33%
5. Strategic Relations and Governance
23,108,879
155,535,000
132,426,121
Total
7,474,426,711
22,578,495,000
15,104,068,289

31. DELIVERY PERFORMANCE – 31 JULY 2011
Province
Delivery Targets
Delivery Performance
Variance Delivery Sites
Variance Delivery Top Structure
Total Variance Delivery
Sites (Units)
Top Structure (units)
Total Delivery Targets
Sites
Top Structure
Total Delivery performance
Eastern Cape
5,220
5,140
10,360
1,700
3,283
4,983
(3,520)
(1,857)
(5,377)
Free State
2,560
2,509
5,069
2,455
(2,560)
(54)
(2,614)
Gauteng
5,202
11,431
16,633
1,712
8,831
10,543
(3,490)
(2,600)
(6,090)
KwaZulu-Natal
2,953
8,529
11,482
1,849
7,468
9,317
(1,104)
(1,061)
(2,165)
Limpopo
1,000
4,470
5,470
229
2,422
2,651
(771)
(2,048)
(2,819)
Mpumalanga
2,745
3,465
6,210 -
2,482
(983)
(3,728)
Northern Cape
510
1,160
1,670
609
1,007
1,616 99
(153)
North West
1,510
4,620
6,130
2,616
4,940
7,556
1,106
320
1,426
Western Cape
4,362
4,213
8,575
2,092
3,054
5,146
(2,270)
(1,159)
(3,429)
Total
26,062
45,537
71,599
10,807
35,942
46,749
(15,255)
(9,595)
(24,850)

32. HSDG PERFORMANCE – 30 JUNE 2011

33. HSDG PERFORMANCE – 31 JULY 2011

34. PROVINCIAL TRANSFERS vs. EXPENDITURE - 11/12

35. PROVINCIAL TRANSFERS vs. EXPENDITURE – 11/12

36. PAYMENT SCHEDULE vs. EXPENDITURE - 31 July 2011

37. THANK YOU