1. National Department of Public Works Presentation to the Select Committee on Public Services 5 June 2012 Immovable Asset Register (IAR) Programme Progress Report (Draft)

2. CONTENTS  Background  IAR Program on a page  Program governance structure  Status quo assessment  Key achievements to date  Field Work  Concurrent mandate  Critical success factors  Closing

3. BACKGROUND  Service provider appointed & commenced work in October/ November 2011  Status quo and gap analysis completed by Dec 2012  PMO established with effect from Jan 2012 to oversee programme to rebuild a baseline compliant immovable asset register (IAR) Clear work-packages developed to achieve re-build Core team of 6 joint client/ consultant team in place for past 5 months Extensive use being made of other DPW resources, management trainees, previously unemployed graduates  Programme reports directly to COO and DG  Regular feedback provided at Minister / Exco levels

4. IAR PROGRAMME ON A PAGE Nov 11Mar 12May 12Dec 12May 13 Status quo & gap Designed requirements for baseline compliant IAR Data cleansing & comparison of PMIS to Aktex Extensive liaison with AG and OAG Complete confirmation of properties transferred to provinces (List B) Completed Work in progressNot started Ongoing data cleansing & masterfile creation for each property Develop & apply Fair Value process by 2012/13 IAR requirements incorporated into iEWorks data repository IAR for AFS 2013 Focussed field work in conjunction with Regions Design revised integrated operating model for asset register management function (ARM) Implement Migrate Handover New operating model Operate interim structure Key: AG will still qualify Decided to adopt FV approach going forward Key milestone: Desktop cleanse process can be incorporated into IAR for 31 May 2012 Developed custodian framework Analysis of current vesting process & suggested options given March 2014 deadline May 14 Revise vesting process/ bulk vesting with RDLR Identified & secured DPW resources Reconciled PMIS to Deeds & Other IARs Roadmap & budget prepared to March 2014 Developed custodian framework PMO Set-up July 12 Key milestone: 95% IAR with required refinements that ties back to AFS Final product Clean report with “emphasis” AG may still qualify Key projects & activities required Proposed timeline/ sequence

5. PROGRAMME GOVERNANCE STRUCTURE DPW COO DPW resources & contractors Monthly Steering Committee DG, COO, EY, CD ARM, DDG AIM EY team EY Project Director EY PMO & Project Lead Monthly Mintop Standard dashboard DPW DG DPW ARM team Regions/ Property Managers Weekly Programme Opco Co-opts other DPW disciplines (IT, finance etc) as deemed necessary Monthly Steering Committee: Chaired by DG/ COO, approves & tracks IAR programme, monitors & approves programme changes, approves design documents submitted by Opco, instructs DPW directorates & regions, external communication through DG with other Departments & Provinces, approves EY invoices and other project spend required. Turnaround Structures/ Initiatives Weekly Programme Opco: Operational meeting based on standard weekly flash report from project managers, project leads report on progress of individual projects, acts a design authority, liaises with regions, other disciplines and directorates on a day-to-day basis. Responsible for managing and executing all IAR projects, managing resources, scheduling projects and providing monthly pre-determined status reports to steering committee. DPW ARM CD Responsible for implementation

6. STATUS QUO ASSESSMENT  Summary of information currently contained in IAR (PMIS* Sept 2010)  Incomplete & inaccurate  Not updated regularly/ consistently  Inconsistent / duplicated data  Does not comply with applicable legislation and NT guidelines  Does not meet DPW user (reporting) requirements  Cannot be reconciled to financial records o NB: Supporting documentation from WCS or BAS payments is not the issue o Issue is the lack of defined processes and system integration to give effect to recording annually the appropriate entries in the IAR in respect of qualifying capital expenditure in terms of a valid capitalisation policy  Operating model not clearly defined  Roles & responsibilities not clear (ARM, Regions, Finance)  Don’t have right skills and capacity in right place  No end-to-end business processes  User requirements for iE-Works development are not complete *PMIS in process of being replaced by iE-Works (complete IAR functionality pending

7. KEY ACHIEVEMENTS TO DATE 1.Performed reconciliation of PMIS to deeds records and other custodian IARs to determine number of properties to be included in IAR 2.Completed data cleansing by comparison of +- 85 000 records to Aktex Utilised 21 contractors at DPW Head Office to perform this work 3.Custodian framework drafted Contact with other custodians to ensure right assets are disclosed in the right custodian’s asset register 4.For March/May 2012 reporting cycle we are in a position to present; List of assets as reconciled to Deeds and Aktex Improvements file linked to land parcels to provide more holistic view List of items for follow-up / clarification 5.Defined fields required for baseline IAR (incorporated in iE-Works) 6.Extensive engagement with OAG, who concurs that focus area is completeness & accuracy of IAR (valuation not as critical) 7.Draft capitalisation policy prepared

8. KEY ACHIEVEMENTS TO DATE Preliminary result of analysis of deeds download obtained 30 Sept 2011: NB: Above figures are subject to change as we progress with analysis/ clarification

9. KEY ACHIEVEMENTS TO DATE 1/2) What are we meant to disclose in NDPW IAR and AFS? previously been reporting +- 35 000 land parcels as NDPW’s Review to date reveals following results: NB: Above figures are subject to change as we progress with analysis/ clarification

10. KEY ACHIEVEMENTS TO DATE 2/2) What are we meant to disclose in NDPW IAR and AFS?  +- 50 000 provincial properties were devolved to provinces (2008)  Such properties were not correctly removed from PMIS & accounted for by NDPW  NT sector specific guide requires that NDPW discloses in its IAR and AFS such provincial properties not yet vested by relevant provinces  Desktop analysis reveals the following; ItemQtyComment Total provincial land parcels in PMIS50,364 Less: Already vested by Provinces10,903 Aktex reveals provincial govt as title holder Less: Private properties to be removed9,273 Needs investigation and follow up Less: Properties that could form part of NDPW’s IAR1,360 Have references to “National” in Aktex hence should form part of NDPW main IAR Less: Other (no title holder, PTO’s, other state dept’s etc)12,177 Further analysis required before these can be categorised with certainty To be disclosed by NDPW in IAR & AFS16,651 Provincial properties but not yet vested by provinces, hence reflected in NDPW IAR/ AFS. NB: Above figures are subject to change as we progress with analysis/ clarification

11. FIELD WORK  Previous attempts at field work have had mixed success & results are not necessarily reflected in current data in PMIS  Regions possess significant amounts of information not necessarily (correctly or completely) reflected in current IAR  Intention is to perform focussed fieldwork where information is lacking and vital to the process (also for FV model)  Fieldwork to be done in collaboration with Regions ;  May not be necessary to inspect each land parcel (use of desktop technologies)  Use of industry standard tool (tablet) to collect, record, validate and upload data on an ongoing basis  Use of DPW resources and graduates (Minister’s call database)  Plan to commence fieldwork in August 2012 and complete by April 2013

12. VESTING PROCESS  Current process not sufficiently co-ordinated or focussed despite resources that have been assigned in Regions  Based on latest statistics (reliability issues) the current throughput is too low to achieve deadline of March 2014  Key challenges:  Information required to complete forms not available due to current state of IAR and challenges in confirming use at 27 April 1994  (Skilled) capacity at National, Provinces and DRDLR  Proposals  IAR rebuild will provide majority of information required  Joint collaboration with DRDLR, Provinces to bulk vest  May require streamlining of current prescribed process

13. CONCURRENT MANDATE  Need to (re-) define and agree on what role DPW has in conjunction with DRDLR, Provinces and other custodians  DPW in process of re-establishing its concurrent mandate – evidenced by e.g.;  Custodian framework developed and being approved by State law advisor  Contact being made with all other custodians (“who is disclosing what in terms of what”)  Design input into iE-Works as asset register system for all users  Deeds reconciliation for completeness of accounting & reporting by relevant custodians  Revised Operating Model will incorporate such functions and required skills/ capacity to give effect to NDPW’s concurrent mandate

14. CRITICAL SUCCESS FACTORS  PMO to work closely with turnaround team to arrive at suitable operating model for asset register management  Rapid implementation of proposed revised operating model to ensure continued momentum and ongoing maintenance of IAR  Change management at all levels – National, Regions, Provinces, RDLR  Integration of base data contained in IAR with other business requirements going forward as organisation matures  Development of iE-Works to meet all IAR requirements or clarity on alternative system going forward to enable integrated processes, accurate reporting both internally and externally for portfolio/ property management purposes  Co-operation with RDLR and Provinces to speed up vesting process (e.g. Bulk vesting of provincial properties still in DPW IAR)  Incorporating wider business requirements whilst baseline IAR is being established

15. CLOSING  Substantial tangible progress has been made and awareness created at National and Provincial levels of what is required to build baseline compliant IAR  Tight but achievable deadline given that required resources materialise as planned  Programme has sponsorship at the highest level

16. THANK YOU