1. 2019/ 2020 Department’s Annual Performance PLAN SELECT COMMITTEE: Cooperative Governance and Traditional Affairs (Water, Sanitation and Human Settlement) 09 JULY 2019

2. Table of Contents Purpose
Process of developing the Departmental Annual Performance Plan 2019/ 20
3. Policy and Legislative Priorities
Predetermined Objectives & Performance Targets. (Programme 1 to Programme 4)
Departmental Budget Structure (ENE)
6. Recommendation
10/22/2019

3. 1. PURPOSE
For the Select Committee to note the 2019/20 Annual Performance Plan – a mandatory instrument to facilitate oversight and accountability
10/22/2019

4. Second Draft - 30 November 2018
2. Process of developing the Departmental 2019/2020 Annual Performance Plan
First Draft - 31 August 2018
Second Draft - 30 November 2018
Consideration of inputs from oversight structures- AGSA, DPME and Internal Audit
Tabling of the 2019/20 Annual Performance Plan in Parliament
10/22/2019

5. 3. Policy and Legislative Priorities
Revision of the Human Settlements Code
Amendment of the Housing Act to Human Settlements Legislation
Amending the Housing Consumer Protection Measures Act
Human Settlement Development Bank Bill
Amending the Prevention of Illegal Evictions and Unlawful Occupation of Land Act
The Home Loan and Mortgage Disclosure Amendment Bill (HLAMDA)
Policy Review and Evaluations
10/22/2019

6. 4. Predetermined Objectives and Performance Targets Programme 1
Strategic Goals
Objectives
(High level output)
Strategic Plan target
Related targets
Enhanced efficiency and effectiveness
To promote efficient and effective administrative processes
Unqualified audit opinion with no matters of emphasis
unqualified audit opinion
2018/19 with no matters of emphasis
2019/20 with no matters of emphasis
2020/21 with no matters of emphasis
100 % compliance with statutory tabling and prescripts
100% implementation of the approved internal audit plan
100% implementation of the approved risk management plan
10/22/2019

7. (cont.) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Enhanced efficiency and effectiveness
To promote efficient and effective administrative processes
Unqualified audit opinion with no matters of emphasis
100% execution of the approved anti-fraud and corruption implementation plan
100% implementation of the Annual Human Resource Implementation Plan
Effective and efficient legal support
Comprehensive Human Settlement Legislation developed
4 reports on the development of legislative framework as per approved Legislative Programme
100% of lodged disputes investigated within 90 days
10/22/2019

8. (cont.) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Enhanced efficiency and effectiveness
To provide ICT infrastructure that is reliable, secure and available
Integrated information and communication technology services provided
90% availability of HSS Database Systems
90% availability of HSS Database Systems
90% Availability of secured ICT services
90% Availability of secured ICT services
10/22/2019

9. Predetermined Objectives and Performance Targets Programme 2
Strategic Goals
Objectives
(High level output)
Strategic Plan target
Related targets
Integrated and responsive human settlements sector policy environment
To develop evidence based policies and programmes
Policy framework for Human Settlements developed
A policy Framework for Human Settlements developed: Human Settlements Ombudsman
Policy framework for Human Settlements developed
To establish partnerships to support the delivery of Human Settlements sector priorities
National Human Settlements development plan developed
National Human Settlements development plans developed
10/22/2019

10. (cont) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Integrated and responsive human settlements sector policy environment
To establish partnerships to support the delivery of Human Settlements sector priorities
National Human Settlements development plan developed
2020/21 National Human Settlements development plan developed (HSDG funded) by 31st March 2020
2021/22 National Human Settlements development plan developed (HSDG funded) by 31st March 2021
2022/23 National Human Settlements development plan developed (HSDG funded) by 31st March 2022
2020/21 Urban Settlement Development plan for Metropolitan municipalities developed (USDG funded) by 31st March 2020
2021/22 Urban Settlement Development plan for Metropolitan municipalities developed (USDG funded) by 31st March 2020
2022/23 Urban Settlement Development plan for Metropolitan municipalities developed (USDG funded) by 31st March 2020
10/22/2019

11. Final Planned Targets per Province: 2019/ 20
2019/10/22

12. USDG & UISP 2019_20 PLANS Total budget 975 685 813 563 2 074 994
SUBMISSION OF METROS
Nelson Mandela Bay
Mangaung
City of Ekurhuleni
City of Jhb
City of Tshwane
eThekwini
City of Cape Town
Budget
R’000
Housing and Human Settlements
Water and Sanitation
70 600
Roads and Storm water & Public Transport
41 000
Energy
55 000
26 000
38 000
5 000
64 076
Social Amenities
25 071
37 050
50 000
Solid Waste
2 000
17 475
Economic Development
Community Infrastructure Projects
Planning
Upgrading of informal settlements (UISP Window)  
3% USDG OPSCAP
24 407
Operating
VAT
39 572
Total budget
USDG performance

13. USDG & UISP 2019_20 PLANS Nelson Mandela Bay Mangaung
City of Ekurhuleni
City of Jhb
City of Tshwane
eThekwini
City of Cape Town
Budget
R’000
Normal Project allocation
626,831
1,634,382
Ring Fenced Funding for UISP window
161,132
420,132
Integrated National Electricity Programme (INEP)
32 000
25,600
38,000
38 000
45 000
25 600
Total
Variance between Metro submission and DoRA Allocation -
(17,520)
(137,074)
(5,000)
Buffalo City’s USDG Plan outstanding
USDG &UISP budget 2019_20

14. (cont) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Integrated and responsive human settlements sector policy environment
To establish partnerships to support the delivery of Human Settlements sector priorities
Increased participation
of stakeholders in human settlements
development
32 intergovernmental forums coordinated for human settlements development
14 stakeholder partnerships mobilised towards human settlements development
6 international cooperation initiatives aligned to Human Settlement priorities supported
10/22/2019

15. (cont) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Integrated and responsive human settlements sector policy environment
To develop evidence based policies and programmes
Policy Framework for Human Settlements developed
Policy framework for Human Settlements developed
Programmes for human settlement code developed
Human Settlements Code developed
No Target
30% of HSDG and USDG budget allocated to women owned entities monitored
10 % of HSDG and USDG budget allocated to youth owned entities monitored
Human Settlements MTSF Developed
10/22/2019

16. Predetermined Objectives and Performance Targets Programme 3
Strategic Goals
Objectives
(High level output)
Strategic Plan target
Related targets
Increased delivery of adequate housing in sustainable Human Settlements
Provide implementation support on the delivery of sustainable human settlement
9 Provinces supported on the implementation of human settlements programmes
Project Readiness Matrix implemented in 9 provinces
Programme implementation support provided to 50 government-led catalytic projects
Programme implementation support for the revitalization of distressed mining communities in 23 Local Municipalities provided
10/22/2019

17. (cont) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Increased delivery of adequate housing in sustainable Human Settlements
Provide implementation support on the delivery of sustainable human settlement
9 Provinces supported on the implementation of human settlements programmes
200 informal settlements assessed (Feasibility studies
conducted)
200 informal settlements assessed (Feasibility studies conducted)
156 Informal Settlements assessed (Feasibility Studies conducted)
300 Informal settlement upgrading plans developed
554 Informal settlement upgrading plans developed
266 Informal Settlement Upgrading Plans developed
Support provided to provinces and metros for the upgrading of households in informal settlements
10/22/2019

18. (cont) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Increased delivery of adequate housing in sustainable Human Settlements
Provide implementation support on the delivery of sustainable human settlement
9 Provinces supported on the implementation of human settlements programmes
Provinces and municipalities supported to provide individual units for subsidy housing market
Support provided on the delivery of Private Affordable Rental Housing units
Support provided on the implementation of Social Housing programme to deliver 3000 units
10/22/2019

19. (cont) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Increased delivery of adequate housing in sustainable Human Settlements
Provide implementation support on the delivery of sustainable human settlement
9 Provinces supported on the implementation of human settlements programmes
Support provided on the implementation of Community Residential Unit (CRU) Programme to deliver 400 units
9 Provinces supported to deliver the multiyear land assembly targets
Support provided to Provincial Departments towards the registration of 50,000 pre and post title deeds
No Target
10/22/2019

20. (cont) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Increased delivery of adequate housing in sustainable Human Settlements
Provide implementation support on the delivery of sustainable human settlement
9 Provinces supported on the implementation of human settlements programmes
Provinces supported in the implementation of Title Deeds programme (from April 2014) to deliver Title Deeds
Provinces supported in the delivery of 500 housing opportunities to Military Veterans
9 Provinces and 8 Metros supported in implementing the PHP policy
10/22/2019

21. (cont) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Increased delivery of adequate housing in sustainable Human Settlements
Improved support and capacity for the human settlements sector
9 provincial departments supported in the implementation of Human Settlements Apex Programme
2020/25 Human Settlements Sector Capacity Development Strategy developed by 31st March 2020
No Target
Enhanced sector monitoring and evaluation
8 Evaluation studies completed
100% of projects under implementation monitored and verified (HSDG and USDG)
3 Evaluations studies completed
UISP 3 year impact,
Rapid Appraisal of Outcome 8, and
The Impact of the Housing Chapters of the Integrated Development Plan (IDP)
2 Evaluation studies completed
10/22/2019

22. Summary: Government-led Catalytic Projects

23. Identified Municipalities with Distressed Mining Communities
Local Municipality
Main Urban Centre/s
District Municipality
Province
LIM 476 (Greater Tubatse and Fetakgomo)
Burgersfort and Apel
Greater Sekhukhune
Limpopo
Elias Motsoaledi
Groblersdal
Lephalale
Ellisras
Waterberg
Thabazimbi
Mogalakwena
Mokopane
Rustenburg
Bojanala
North West
Madibeng
Brits
Moses Kotane
Mogwase
Kgetlengrivier
Koster
Matlosana
Klerksdorp
Dr Kenneth Kaunda
Emalahleni
Witbank
Nkangala
Mpumalanga
Steve Tshwete
Middelburg
Thaba Chweu
Lydenburg
Matjhabeng
Welkom
Lejweleputswa
Free State
Merafong
Carletonville
West Rand
Gauteng
Mogale City
Krugersdorp
Randfontein
Westonaria
Gamagara
Khathu
John Taolo Gaetsewe
Northern Cape
Tsantsabane
Postmasburg
Kgatelopele
Danielskuil
Ga-Segonyana
Kuruman
Joe Morolong
Khai-Ma
Pofadder
Namakwa

24. Title Deed Backlog: Pre & Post’ 94 post 2014
2019/10/22

26. National Title Restoration Grant Profile 2019/20
Total allocation – R
Pre’94 Title Deeds – R
Post ‘94 Title Deeds – R
Physical Verifications – R
Disputes resolved – R
erven – R
(Pending allocation) – R

27. Predetermined Objectives and Performance Targets Programme 4
Strategic Goals
Objectives
(High level output)
Strategic Plan target
Related targets
Increased delivery of adequate housing in sustainable Human Settlements
Efficient utilization of human settlements grants
Approved human settlements grants framework
Approved Human Settlements Grants Framework
4 HSDG quarterly performance assessments conducted
4 TDRG quarterly performance assessments conducted
4 USDG quarterly performance assessments conducted
10/22/2019

28. (cont) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Increased delivery of adequate housing in sustainable Human Settlements
Efficient utilization of human settlements grants
Approved human settlements grants framework
4 FLISP performance assessments conducted
4 Assessments on the volume of loans granted by DFIs for the affordable housing market conducted
Bi-annual assessments of employers’ contribution towards Employer Assisted Housing conducted
10/22/2019

29. (cont.) 10/22/2019 Strategic Goals Objectives (High level output)
Strategic Plan target
Related targets
Increased delivery of adequate housing in sustainable Human Settlements
Efficient utilization of human settlements grants
Approved human settlements grants framework
Annual performance analysis of financial institutions on their lending patterns conducted
Annual performance analysis of financial institutions on their lending patterns on home loans conducted
4 performance assessments on the Office of Disclosure
4 performance assessments on the Office of Disclosure
Finance and funding model to better target the realisation of Human Settlements outcomes revised by end of 2019/20
No target
10/22/2019

30. Examples: Interventions/ Support
North West - section 100(1)(a)
Gauteng Intervention support
Limpopo Delivery Facilitation Support
EThekwini Service Delivery War room
Eastern Cape War Room (BCM, NMBM, Makhanda)
Emergency Housing (restore shelter following disasters)
Social and Rental Housing Interventions (Avoca Hills, Howell Road, Steenvilla, Communicare)
National Rapid Response Team
Appointment of Programme Delivery Facilitators
10/22/2019

31. Departmental Budget Structure (ENE)
The Department’s budget structure is divided into four programmes:
Programme 1: Administration
Purpose: Provide strategic leadership, management and support services to the department.
Programme 2: Human Settlements Policy, Strategy and Planning
Purpose: Manage the development of policy and compliance with human settlements sector delivery and intergovernmental relations frameworks, and oversee integrated human settlements strategic and planning services
Programme 3: Programme Delivery Support
Purpose: Support the execution, monitor and evaluate the implementation of human settlements programmes and projects. Manage the building of capacity and skills in the sector and provide oversight of public entities.
Programme 4: Housing Development Finance
Purpose: Fund the delivery of housing and human settlements programmes, manage all matters related to improving access to housing finance and developing partnerships with the financial sector.

32. Composition of budget and Allocation
In the current financial year baseline Cabinet further introduced budget cuts amounted valuing R2.2 billion over 2019 MTEF from R107,8billion to R105,2billion
The Department’s current year’s (2019/20) budget allocation is R33.9 billion and consists of the following:
R31.7bn of the budget is allocated to grants, (93.9%) : Human settlements Development Grant takes R18,8bn while USDG is allocated R12bn
R1.2bn of the budget is allocated to Human Settlements Entities. (3.6%)
R843.3 million of the budget funds the Department’s operations. (2.6%)
R14.9 million of the budget is for other transfer. (0.04%)
The operational budget allocation of R843.3 million is composed of:
Compensation of employees which takes up 48.1% of the total operational allocation;
Goods and services which is 51.5% of total operational allocation; and
R3.4 million for capital assets which constitutes 0.4% of total operational allocation.

33. 2019 Budget outcomes and Reprioritization
2019/20
R`000
2020/21
2021/22
Total MTEF
Departmental Baseline from 2018 MTEF
Net change
( )
( )
( )
Revised Baseline allocation
The following changes were made:
Cabinet induced budget cuts amounted to R2.2 billion over MTEF from R107,8bn to R105,2bn
An additional R814.5 million was allocated specifically for the (INEP) and for the electrification of informal settlements, This allocation is included in the Urban Settlements Development Grant ( USDG) and will be transferred to Metros.
An additional R647 million has been allocated for the KZN Disaster Recovery Grant;
R200 million reduction from cabinet approved cuts; Taken from the Human Settlements Development Grant (HSDG)
Funds reprioritized from the HSDG and USDG for the creation of the new grants Informal Settlements Upgrading Partnership Grant: Provinces
Informal Settlements Upgrading Partnership Grant: Municipalities 33

34. Changes on the Human Settlements Development Grant (HSDG)
2019/20
R`000
2020/21
2021/22
Total MTEF
Baseline allocation 2019 MTEF
Reallocation within the Baseline
Human Settlements Development Grant: Informal Settlements component -
( )
( )
( )
Human Settlements Development Grant: Finance linked Individual Subsidy Programme component
( )
( )
( )
( )
Title deeds Restoration grant
Total Reallocation
( )
( )
( )
Additional Funding
Human Settlements Development Grant: KZN Disaster Recovery Funding
Cuts
Cabinet Approved cuts 1st allocation letter
( )
( )
Cabinet Approved cuts 2nd allocation letter
( )
( )
( )
Total Cuts and re-prioritisation
( )
( )
Final Allocation 34

35. Changes on the Reduction on the Urban Settlements Development Grant (USDG)???
2019/20
R`000
2020/21
2021/22
Total MTEF
Baseline allocation 2019 MTEF
Additional: Electrification of Informal Settlements
Cabinet Approved cuts
(50 000)
(100 000)
(200 000)
Reprioritization to: Informal Settlements Upgrading Partnership Grant Municipalities -
( )
( )
(7 369 115)
Final Allocation 35

36. 2019 MTEF Allocation by Programme
Programmes
2019/20
R`000
2020/21
2021/22
Total MTEF
Administration
Human Settlements Policy, Strategy and Planning
Programme Delivery Support
Housing Development Finance
Total

37. Programme 1: Administration
Programmes
2019/20
R`000
2020/21
2021/22
Total MTEF
Ministry
55 643
58 602
61 735
Departmental Management
88 991
96 718
Corporate Services
Property Management
43 332
45 830
48 351
Financial Management
64 994
69 330
73 835
Total

38. Programme 2: Human Settlements Policy, Strategy and Planning
Programmes
2019/20
R`000
2020/21
2021/22
Total MTEF
Management for Policy, Strategy and Planning
8 407
8 870
9 361
26 638
Human Settlements Policy Frameworks
38 686
41 588
44 422
Human Settlements Strategy and Planning
57 564
61 298
65 302
Total

39. Programme 3: Programme Delivery Support
Programmes
2019/20
R`000
2020/21
2021/22
Total MTEF
Management for Programme Delivery Support
8 869
9 407
9 976
28 252
Programme Management Unit
Chief of Operation
47 641
50 408
53 329
Total

40. Programme 4: Housing Development Finance
Programmes
2019/20
R`000
2020/21
2021/22
Total MTEF
Management for Housing Development Finance
4 590
4 804
5 030
14 424
Chief Investment Officer
24 721
26 530
28 423
79 674
Human Settlements Development Grant
Contributions
Urban Settlements Development Grant
Title Deeds Restoration Grant
Emergency Housing Grants
Informal Settlements Upgrading Partnership Grants
Total

41. Budget Allocation by Economic Classification
Total allocation R`000
2019/20
2020/21
2021/22
Total MTEF
Departmental Operations
Compensation of employees
Goods and services
Payment for Capital assets
3 423
3 607
3 807
10 837
Grants and transfer payments
Grants
Human Settlements Development Grant
Informal Settlements Upgrading Partnership Grant Provinces -
Provincial Emergency Housing Grant
Title Deeds Restoration Grant
Urban Settlements Development Grant
Informal Settlements Upgrading Partnership Grant Municipalities
Municipal Emergency Housing Grant
Entities
Social Housing Regulatory Authority (SHRA): Operational
65 761
69 378
73 194
SHRA: Institutional Investment
21 259
22 428
23 662
67 349
SHRA: Consolidated Capital grant
Community Schemes Ombud Services
32 847
34 654
36 560
National Housing Finance Corporation (NHFC): Financed Linked Individual Subsidy Programme (FLISP)
95 000
NHFC: Operational support FLISP
5 000
15 750
20 000
40 750
National Housing Finance Corporation- Capitalization of the HSDB
50 000
Housing Development Agency
Departmental Transfers
14 049
14 973
15 985
45 017
Bursaries Scheme
7 474
8 078
8 715
24 267
UN Habitat
2 400
2 695
3 050
8 145
City Alliance
685
700
720
2 105
Mangosuthu University of Technology
3 500
10 500
Total

42. CONDITIONAL GRANTS

43. 2019 MTEF Allocations: HSDG
Province
2019/2020
2020/2021
2021/2022
Total Allocation
Normal Projects
Mining Towns (Ring Fenced)
UISP (Ring Fenced)
Disaster
R'000
Eastern Cape -
Free State
59 598
54 983
Gauteng
KwaZulu-Natal
Limpopo
Mpumalanga
Northern Cape
54 823
North West
Western Cape
Total
2019/10/22

44. 2019 MTEF Allocations: USDG
Provinces
Metros
2019/20
2020/21
2021/22
EASTERN CAPE
Buffalo City
Nelson Mandela
Sub Total
FREE STATE
Mangaung
GAUTENG
Ekurhuleni
Johannesburg
Tshwane
KWAZULU-NATAL
eThekwini
WESTERN CAPE
Cape Town
Grant Total

45. 2019 MTEF Allocations (UISP)
UISP GRANTS
2019/20
R`000
2020/21
2021/22
Total MTEF
Informal Settlements Upgrading Partnership Grant: Provinces -
Informal Settlements Upgrading Partnership Grant: Municipalities
Total 45

46. 2019 MTEF Allocations TDRG Provinces 2019/20 2020/21 2021/22 R'000
Eastern Cape
60 904
64 254 -
Free State
32 095
33 860
Gauteng
Kwazulu- Natal
Limpopo
35 820
37 790
Mpumalanga
36 477
38 483
Northern Cape
10 790
11 383
North West
50 388
53 160
Western Cape
64 410
67 952
Total
2019/10/22

47. 2019 MTEF Allocations: Emergency Housing Grants
2019/2020
2020/2021
2021/2022
R'000
Provincial Emergency Housing Grant
Municipal Emergency Housing Grant
TOTAL
2019/10/22

48. 5. Recommendations
It is recommended that the NCOP Select Committee: Cooperative Governance and Traditional Affairs (Water, Sanitation and Human Settlement notes the 2019/20 Annual Performance Plan
10/22/2019

49. THANK YOU
10/22/2019