1. TABLE OF CONTENTS Introductory Remarks MTEF Allocations
Human Settlements Development Grant (HSDG) Allocations
HSDG performance 30 June 2013
Business Plans and Analysis
Challenges/ Constraints
Mitigating Measures
HSDG performance 31 August 2013 (PRELIM)
Trends analysis 2011/2012 to 2012/2013
Monthly Compliance
Monitoring and Evaluation

2. 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

3. 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

4. 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.

5. Human Settlements Development Grant: 2013 MTEF allocation
Provinces
2013/14
2014/15
2015/16
R`000
Total Allocation
by province
Indicative
Allocation
EASTERN CAPE
2,523,803
2,662,663
2,922,546
FREE STATE
1,120,936
1,182,609
1,298,035
GAUTENG
4,108,399
4,334,441
4,757,497
KWAZULU-NATAL
3,235,428
3,413,440
3,746,602
LIMPOPO
1,324,742
1,397,629
1,534,042
MPUMALANGA
1,124,332
1,186,193
1,301,969
NORTHERN CAPE
395,724
417,497
458,247
NORTH WEST
1,224,537
1,291,911
1,418,005
WESTERN CAPE
1,925,971
2,031,938
2,230,261
Total
16,983,872
17,918,321
19,667,204

6. 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

7. Human Settlements Development Grant: 20% allocation cont,
Provinces
2013/14
R`000
Upgrading of Informal Settlements
Rental and Social Housing
Land
National Priority Program
EASTERN CAPE
24 296
FREE STATE
62 861
73 338
10 477 -
GAUTENG
41 083
KWAZULU-NATAL
31 837
LIMPOPO
77 345
90 235
12 891
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
19 260
62 736
Total

8. National Priority Program: 20% All cont,
Province
R`000
Town
2013/14
EASTERN CAPE
Duncan Village
GAUTENG
Lufhereng
Diepsloot
91 472
Sweetwaters
45 736
Khutsong
96 046
Sub Total
KWAZULU-NATAL
Cornubia
LIMPOPO
Lephalale
WESTERN CAPE
Drommedaris
62 736
Total

9. National Priority Projects Performance
The performance information for Duncan Village reflected a non spending due to contractors that had left the site for non-availability of approved beneficiaries as well as cash flow challenges;
The report from Gauteng Province indicated that there are 1000 units delivered in Sweet-Waters with 878 units allocated to beneficiaries;
The performance information for Cornubia for the quarter ending of June 2013 was also not submitted;
The performance information for Lephalale Bulk Infrastructure for the month of June 2013 reflected a budget of R112.1 million, while no spending occurred: The conditional grant was withheld,... External verification of claims;
Information on Drommedaris is such that Western Cape Department has delivered 600 Units as a Priority Project.

10. Human Settlements Development Grant Expenditure : 30 June 2013
Provinces
Voted Funds
Human Settlement Development Grant as at 30 June 2013
Transferred Funds
Spent by Provinces
Variance Spent vs. Transferred
Variance Spent vs. Voted Funds
Unspent as % of Voted Funds
R'000 %
% of voted
% of transferred
Eastern Cape
16%
13%
80%
78 066
87%
Free State
20%
90 547 8%
39%
92%
Gauteng
22%
15%
67%
85%
KwaZulu-Natal
21%
18%
88%
82 060
82%
Limpopo - 0%
97 903 7%
(97 903)
93%
Mpumalanga
77 893
(77 893)
Northern Cape
74 517
19%
61 840
83%
12 677
84%
North West
25%
23%
91%
28 644
77%
Western Cape
72%
94 502
Total
17%
14%
81%
86%

11. 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;

12. 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

13. 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 units consisting of 0 serviced sites and top structures from an annual target set at units.
Free State Province indicated that the overall reasons for under performance occurred due to delays in procurement processes and cash flow management.

14. HSDG Cont.
The Limpopo allocation for the 2013/14 financial year is R1.3 billion including R35.6 million for Disaster Relief. 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.
The expenditure incurred was through the province’s equitable share. According to the 2013/14 approved payment schedule b R224.9 million was supposed to have been transferred to Limpopo Province from April 2013 to June 2013.

15. Delivery Performance: 30 June 2013
Province
Annual Delivery Targets
Delivery Performance as at 30 June 2013
Variance Delivery sites
Variance Delivery Top Structures
Total Variance Delivery
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
(15 485)
(18 443)
(33 928)
Free State
8 794
10 157
18 951
701
723
1 424
(8 093)
(9 434)
(17 527)
Gauteng
15 460
28 023
43 483
829
4 008
4 837
(14 631)
(24 015)
(38 646)
KwaZulu-Natal
10 018
26 682
36 700
692
5 614
6 306
(9 326)
(21 068)
(30 394)
Limpopo
4 901
17 552
22 453 85
1 367
1 452
(4 816)
(16 185)
(21 001)
Mpumalanga
1 000
14 287
15 287 -
1 583
(1 000)
(12 704)
(13 704)
Northern Cape
7 987
3 673
11 660 90
391
481
(7 897)
(3 282)
(11 179)
North West
5 053
15 230
20 283 71
2 595
2 666
(4 982)
(12 635)
(17 617)
Western Cape
6 642
11 802
18 444
694
1 233
1 927
(5 948)
(10 569)
(16 517)
Total
77 120
4 942
19 483
24 425
(72 178)
( )
( )

16. 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

17. Other milestones cont.
The previous table refers to other milestones that have a direct contribution to the development of serviced sites and the construction of houses.
The Financed Linked Individual Housing Subsidy Programme (FLISP) is applicable to households in the income category of R3 501 to R per month who do not qualify for a subsidised house and are also unable to obtain mortgage finance. These households may apply for the allocation of serviced stands developed under the Integrated Residential Development Programme if /as they qualify for the once-off subsidy.

18. Other milestones cont.
The actual spending of R3 million was only incurred by Limpopo province.
Eastern Cape spent on the rectification programme 126% while Western Cape 41%.
The Operational Capital Budget Programme (OPSCAP) allows Provinces to augment their capacity required for housing delivery. 5% is allowed as a maximum allocation. This programme achieved a spending rate of 55%.

19. Other milestones cont.
Blocked projects are incomplete projects that were stalled for various reasons. Funds are provided to unblock these projects and Provinces have spent 10% of their allocation in the first quarter.
Suitable land is identified for human settlements development and Provinces allocated funds for the acquisition of land through the Housing Development Agency.;
Of the R78 million allocated Provinces only R4 million was used for the procurement of land;

20. 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

21. 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.

22. Business Plan Project Readiness
Province
Total number of projects planned to deliver units
Number of units planned
Budget allocation for units (R'000)
Number of projects: contractor on site
Number of projects where no units will be delivered
North West
132
11 710 34 98
Western Cape 95
12 052 70 25
KwaZulu Natal 97
26 682 -
Free State 35
2 132 18 17
Gauteng
227
27 966 6
221
Northern Cape 27
3 602 19 8
Mpumalanga 52
10 979 48 4
Eastern cape 26
20 009 22
Limpopo 12
17 552
Total
703
296
407

23. Business Plan Readiness cont.
The average number of units planned for delivery, nationally per project is 163 per annum;
Only KwaZulu Natal has planned its delivery potential and aligned it with the requisite procedures to meet with the capability to deliver during
KwaZulu Natal is followed by Mpumalanga which will not be able to deliver on 4 of its 52 planned projects.
Delivery in the remaining provinces will be extremely poor. This has implications, not only on actual delivery for the human settlements sector, the capability to spend the current HSDG allocation but also for the credibility of the provincial Business plans.

24. Delivery (Apr ‘13 – July ‘13) (Single Figure) in relation to estimated Targets
Target based on data used in Dept Presentation, 05 June 2013

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

26. Human Settlements Development Grant Expenditure: 31 August 2013 (PRELIM)
Provinces
Voted Funds
Human Settlement Development Grant as at 31 August 2013
Transferred Funds
Spent by Provinces
Variance Spent vs Transferred
Variance Spent vs Voted Funds
Unspent as % of Voted Funds
R'000 %
% of voted
Eastern Cape
32%
28%
72%
Free State
41%
15%
85%
Gauteng
39%
25%
75%
KwaZulu-Natal
38%
35%
65%
Limpopo - 0%
10%
( )
90%
Mpumalanga
31%
Northern Cape
34%
94 066
24%
40 093
76%
North West
44%
40%
42 706
60%
Western Cape
50%
42%
58%
Total
36%

27. Human Settlements Development Grant: Allocation Trends 2011/12 to 2012/13
Provinces
2011/12
2012/13
R'000
Eastern Cape
Free State
Gauteng
KwaZulu-Natal
Limpopo
Mpumalanga
Northern Cape
North West
Western Cape
Total

28. Human Settlements Development Grant: 2011/12 Expenditure Performance
Provinces
DORA Allocation 2011/12
Roll Overs
Funds Withheld/ Stopped
Realloc-ations
Total Available
Actual transfer
Amount received by Province
Amount spent by Province
% Spent
2010/11 Allocations
R'000
Eastern Cape -
87%
Free State
99%
Gauteng
100%
KwaZulu-Natal
Limpopo
90%
Mpumalanga
Northern Cape
44 760
North West
115%
Western Cape
Total
98%

29. Disaster Relief Grant: 2011/12 Expenditure Performance
Provinces
DORA Allocation 2011/12
Total Available
Actual transfer
Amount received by Province
Amount spent by Province
% Spent
2010/11 Allocations
R'000
Eastern Cape
56 700 - 0%
Free State
44 100
16 631
38%
Gauteng 36
KwaZulu-Natal
31 140
3 503
11%
Limpopo
21 474
Mpumalanga
360
100%
Northern Cape
10 350
North West
15 840
2 368
15%
Western Cape
Total
33 212
18%

30. Human Settlements Development Grant: 2012/13 Expenditure Performance
Provinces
DORA Allocation 2011/12
Roll Overs
Funds Withheld/ Stopped
Realloc-ations
Total Available
Actual transfer
Amount received by Province
Amount spent by Province
% Spent
2011/12 Allocations
R'000
Eastern Cape -
( )
100%
Free State
2 716
Gauteng
KwaZulu-Natal
Limpopo
(46 114)
92%
Mpumalanga
99%
Northern Cape
North West
Western Cape
Total
( )

31. Monthly Conditional Grant Reports

32. Brief assessment of the Department’s monitoring capacity for the 2013/14 financial year
The Department has the Chief Directorate: Monitoring and Evaluation (CD: M&E) responsible for monitoring and assessing the implementation, performance and impact of National Human Settlements Policies, Programmes, and projects.
The CD: M&E has four directorates
Programme Monitoring
Research and Evaluation (Applied Research)
Programme Impact Assessment
Data Management, Verification and Analysis
The National Department has a Monitoring, Evaluation and Impact Assessment (MEIA) Policy and Implementation Framework for the Human Settlements Sector which applies to:
all the Departments of Human Settlements at the National, Provincial and Municipal levels
all the Human Settlements Institutions created by the National and Provincial Human Settlements Departments to facilitate the Human Settlements delivery process. 

33. Brief assessment of the Department’s monitoring capacity for the 2013/14 financial year
The following activities will be carried out in 2013/14 financial year (as per DORA):
Project level monitoring –
visit Provinces on a quarterly basis to make follow-ups to verify and validate Human Settlements delivery
provide systems that include Housing Subsidy System ( HSS) and MEIA System that support the administration of the human settlement delivery process
alignment of the monitoring and evaluation systems (HSS and MEIA) and ensure uniformity of reporting amongst Provincial Departments and other role players within the chain of Human Settlements delivery.
provide continuous training to Provinces on HSS and MEIA systems. Conduct and participate in the workshops, bilateral meetings (M&E task team) to keep them abreast with the development of monitoring and evaluation
Facilitate regular interaction between national, provincial departments of human settlements and municipalities through structured quarterly performance review meetings

34. Brief assessment of the Department’s monitoring capacity for the 2013/14 financial year
The following activities will be carried out in 2013/14 financial year (as per DORA):
Impact assessments (Conducting Baseline Study for Informal Settlements Targeted for Upgrading) –
Assessing the relevance, performance and success of the Human Settlements programmes
evaluating the outcomes and impacts of the Departmental programmes. Collect data and information through consultation groups with the relevant sources of particular programmes
Write reports based on the recommendations and lesson learned when conducting evaluation and impact assessments

35. Brief assessment of the Department’s monitoring capacity for the 2013/14 financial year
The following activities will be carried out in 2013/14 financial year (as per DORA):
Annual performance report of the sector –
Submit an annual evaluation report for the previous financial year to National Treasury by end of July of the in-year
Evaluate the audited provincial annual reports for submission to National Treasury by mid-December of the in-year
Rapid appraisals (appraisal of Outcome 8 performance) –
Collect data that will be used to conduct future evaluations targeted at:
Strengthening the implementation and improving the performance (efficiency and efficacy of operational processes) of the programme
Determining the nature and sustainability of the programme outcomes
Determining measurable levels of benefits for beneficiaries and communities that the programme produces.
Data Management, Verification and Analysis
Produce reports on the implementation of data management, verification and analysis processes

36. National Human Settlements Development Grant Revised Business Plan 2013/14 Outcome 8 Slum Upgrading, Rental, FLISP, Land National Priorities Rectification, Rural, Priority Projects, Emergency Housing, PHP, HSDG in Metropolitan Municipalities Summary of HSDG

37. Informal Settlement Upgrading Affordable Housing (FLISP)
Outcome 8
Programme
Sites
Units
Outcome 8
Deficit
Budget %
Allocation
Informal Settlement Upgrading
38,798
49,587
146,946
4,491,563
26,44%
Affordable Rental
1,295
8,082
44,498
1,516,149
8.92%
Affordable Housing (FLISP)
3,791
221,183
1.30%
Sub Total
40,093
61,460
6,228,895
36.68% Ha
Parcels
Land
117,363 12
328,659
1.93%
Total
6,557,554
38.61%

38. Summary of Nat’l Priorities
Programme
Sites
Units
Budget
% Allocation
Rectification
2,328
14,733
747,150
4.39%
Rural
8,813
31,345
2,445,427
14.39%
Emergency
802
4,133
437,216
2.57%
Total
11,943
50,211
3,629,793
21.37%

39. Summary of HSDG Allocations – 2013/14
Note that the summary for the Financial intervention is only for the following programmes Flisp, Individual Subsidy Credit Linked and Blocked Projects as these are the only programmes where there are new sites and units.

40. Priority Projects
[1] Gauteng has not provided information on the Lufhereng project therefore no allocation is provided.

41. Other Programme Allocations
Programmes
Sites
Units
Total Budget
Enhanced Extended Discount Benefit
4,486
4 706
60 250
Blocked Projects
170
2 519
224,781
Project Linked Subsidies (Current commitments)
2,874
6,676
647,473
Integrated Residential Development Programme Phase 1. Planning & Services
17,771
100
Integrated Residential Development Programme Phase 2 Top Structure Construction.
1 142
17 832
2 ,073,414
Total
3 647,344

42. Other Programme Allocations
State Asset Maintenance
411 units
28,890
Social and Economic Facilities
6,404
Accreditation of Municipalities
39,753
Operational Capital Budget
347,838
Housing Chapters of IDP's
26,147
Total
449,032

43. THANK YOU