VOTE NO. 11
ANNUAL REPORT
2016/2017 FINANCIAL YEAR
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Table of Contents
1. DEPARTMENT GENERAL INFORMATION .............................................................................. 5
2. LIST OF ABBREVIATIONS/ACRONYMS .................................................................................. 6
3. FOREWORD BY THE MEC ....................................................................................................... 8
4. REPORT OF THE ACCOUNTING OFFICER .......................................................................... 11
5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ....................................................................................................................... 16
6. STRATEGIC OVERVIEW ......................................................................................................... 17
6.1 Vision ................................................................................................................................ 17
6.2 Mission .............................................................................................................................. 17
6.3 Values ............................................................................................................................... 17
7. LEGISLATIVE AND OTHER MANDATES ............................................................................... 18
8. ORGANISATIONAL STRUCTURE .......................................................................................... 21
9. ENTITIES REPORTING TO THE MINISTER/MEC ................................................................. 21
1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ................................... 23
2. OVERVIEW OF DEPARTMENTAL PERFORMANCE ............................................................. 23
2.1 Service Delivery Environment .......................................................................................... 23
2.2 Service Delivery Improvement Plan ................................................................................. 25
2.3 Organisational environment .............................................................................................. 26
2.4 Key policy developments and legislative changes ........................................................... 26
3. STRATEGIC OUTCOME ORIENTED GOALS ........................................................................ 27
4. PERFORMANCE INFORMATION BY PROGRAMME ............................................................ 29
4.1 Programme 1: Administration ........................................................................................... 29
4.2 Programme 2: Integrated Sustainable Human Settlements ............................................. 35
4.3 Programme 3: Cooperative Governance ............................................................................ 48
4.4 Programme 4: Traditional Affairs ........................................................................................ 61
5. TRANSFER PAYMENTS ................................................................................................................. 64
6. CONDITIONAL GRANTS ................................................................................................................. 64
6.1. Conditional grants and earmarked funds paid .................................................................. 64
6.2. Conditional grants and earmarked funds received ........................................................... 64
7. DONOR FUNDS ....................................................................................................................... 65
7.1. Donor Funds Received ..................................................................................................... 65
8. CAPITAL INVESTMENT .......................................................................................................... 65
8.1. Capital investment, maintenance and asset management plan ....................................... 65
1. INTRODUCTION ...................................................................................................................... 67
2. RISK MANAGEMENT............................................................................................................... 67
3. FRAUD AND CORRUPTION ................................................................................................... 67
4. MINIMISING CONFLICT OF INTEREST ................................................................................. 68
5. CODE OF CONDUCT .............................................................................................................. 68
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6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ............................................................. 69
7. PORTFOLIO COMMITTEES .................................................................................................... 69
8. SCOPA RESOLUTIONS .......................................................................................................... 69
9. PRIOR MODIFICATIONS TO AUDIT REPORTS .................................................................... 79
10. INTERNAL CONTROL UNIT .................................................................................................... 79
11. INTERNAL AUDIT AND AUDIT COMMITTEES ...................................................................... 79
11.1 INTERNAL AUDIT ............................................................................................................. 79
11.2 AUDIT COMMITTEES ...................................................................................................... 81
1. INTRODUCTION ...................................................................................................................... 89
2. OVERVIEW OF HUMAN RESOURCES .................................................................................. 89
3. HUMAN RESOURCES OVERSIGHT STATISTICS ................................................................ 91
1. REPORT OF THE AUDITOR GENERAL ............................................................................... 130
2. ANNUAL FINANCIAL STATEMENTS .................................................................................... 136
1. Annual Appropriation .......................................................................................................... 176
2. Statutory Appropriation ....................................................................................................... 176
3. Departmental revenue ........................................................................................................ 177
4. Compensation of employees .............................................................................................. 178
5. Goods and services ............................................................................................................ 179
6. Interest and rent on land ..................................................................................................... 180
7. Payments for financial assets ............................................................................................. 180
8. Transfers and subsidies ..................................................................................................... 181
9. Expenditure for capital assets ............................................................................................ 181
10. Cash and cash equivalents ................................................................................................ 181
11. Prepayments and advances ............................................................................................... 182
12. Receivables ........................................................................................................................ 182
13. Voted funds to be surrendered to the Revenue Fund ........................................................ 184
14. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund ....... 184
15. Payables – current .............................................................................................................. 184
16. Net cash flow available from operating activities ................................................................ 185
17. Reconciliation of cash and cash equivalents for cash flow purposes ................................ 185
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PART A: GENERAL INFORMATION
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1. DEPARTMENT GENERAL INFORMATION
PHYSICAL ADDRESS: 20 Rabe Street
Polokwane
0699
POSTAL ADDRESS: Private Bag X9485
Polokwane
0700
TELEPHONE NUMBER/S: +27 15 284 5000
FAX NUMBER: +27 15 293 1520
EMAIL ADDRESS: [email protected]
WEBSITE ADDRESS : www.coghsta.limpopo.gov.za
mailto:[email protected]
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2. LIST OF ABBREVIATIONS/ACRONYMS
AFS Annual Financial Statements
AGSA Auditor General of South Africa
BBBEE Broad Based Black Economic Empowerment
CDP Community Development Programme
CDW Community Development Worker
CFO Chief Financial Officer
CIGFARO Chartered Institute of Government Finance Audit and Risk Officers
CoGHSTA Cooperative Governance Human Settlements and Traditional Affairs
CONTRALESA Congress of Traditional Leaders of South Africa
CRU Community Residential Units
DDG Deputy Director General
DORA Division of Revenue Act
EAP Employee Assistance Programme
EU European Union
EXCO Executive Council
FLISP Financed-Linked Individual Subsidy Programme
FY Financial Year
GITO Government Information Technology Office
HDA Housing Development Agency
HOD Head of Department
HSDG Human Settlements Development Grant
HSS Housing Subsidy System
IDP Integrated Development Plan
IGR Intergovernmental Relations
IP Internet Protocol
IRDP Integrated Residential Development Programme
ISHS Integrated Sustainable Human Settlements
LED Local Economic Development
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LUMS Land Use Management Scheme
MEC Member of the Executive Council
MIG Municipal Infrastructure Grant
MPAC Municipal Public Accounts Committee
MTEF Medium Term Expenditure Framework
NDoHS National Department of Human Settlements
NHFC National Housing Finance Corporation
NUSP National Upgrading Support Programme
PFMA Public Finance Management Act
PGP Provincial Growth Points
PMU Project Management Unit
POA Programme of Action
SISP Strategic Information Systems Plan
SDF Spatial Development Framework
SCM Supply Chain Management
SMME Small Medium and Micro Enterprises
SAIGA Southern African Institute of Government Auditors
SCOPA Standing Committee on Public Accounts
SDIP Service Delivery Improvement Plan
SIU Special Investigations Unit
SITA State Information Technology Agency
SLA Service Level Agreement
SPLUMA Spatial Planning and Land Use Management Act
TR Treasury Regulations
USDG Urban Settlement Development Grant
CWP Community Works Programme
WSP Workplace Skills Plan
3. FOREWORD BY THE MEC
Ms. MG Makhurupetje
Member of the Executive Council
The Annual Report serves as a
representation of the sum total of
accomplishments recorded in the
department towards fulfilling
commitments entailed in the Annual
Performance Plan (APP). We present
the 2016/17 Annual Report of the Department of Cooperative Governance,
Human Settlements and Traditional Affairs at a time when the overall
performance of the department is on a higher trajectory.
Working together with our people we have recorded many successes in
providing a better life for all. Amongst the achievements scored during the
period under review include the filling of a position of Head of Department
and other senior management posts. We have in overall filled 57 vacant
posts at various levels of the organizational structure. This has seen the
reduction of the vacancy rate from 5.2% in March 2014 to 3.23% in March
this year. Women representation has also seen an improvement at all
levels from 55% during 2015/16 to 56% during 2016/17 financial year.
In an endeavour to enhance the control environment and improve
corporate governance in the department, the following policies were
reviewed: Internet Protocol (IP) Address Management Policy; ICT Firewall
Policy; Leave of Absence Management Policy; Lost and Damaged
Management Policy and Service Excellence Awards Policy.
We continue to resolve 100% of all cases brought to the department
through the Presidential and Premier Hotlines. This makes CoGHSTA one
of the best departments in this area of performance. During the 2016/17
financial year, the department maintained its commitment to pay all
undisputed invoices within the stipulated timeframe of 30 days. This was
done with a view to ensure that Service Providers especially emerging
businesses do not encounter cash flow challenges.
Apart from receiving an unqualified audit opinion, the Department is
steadily moving with speed to reclaim back its status as a Multi-Award
Winning Department. This is evidenced by the number of awards scooped
during 2016/17. Amongst some of the accolades received include; the
PMR Africa Diamond Arrow Award for the best service delivery
department in the province; the SITA GovTech ICT Best Youth in ICT and
Service Delivery and Transformation Awards; the Best Provincial
Department Supporting Municipalities to Achieve Clean Audit (2015/16)
from the Chartered Institute of Government Finance Audit and Risk
Officers (CIGFARO); the Premier Service Excellence Awards for the Best
Support Team of the year Award and the Best Innovation Team in Gold
and lastly the Govan Mbeki award for the Best Rural Housing project in
South Africa.
Human Settlements
Chapter 2 of the Bill of Rights in our Constitution clearly articulates the
right of everyone to have access to adequate housing which the State
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must progressively realize within available means and resources. The
department is doing its utmost to provide decent shelter to the people of
Limpopo through programmes such as Rural housing, FLISP, Military
veterans housing, Disaster housing and EPHP housing. The business plan
target for housing units for 2016/17 is (8998 units) plus (3982 units) for
2015/16 financial year.
A total of 10,527 new housing units were delivered and 4,067 sites against
a target of 8,998 units and 4850 sites respectively. This translates to
14,594 housing opportunities delivered against a target of 13,848 for the
financial year thus the performance is 105%.
Cooperative Governance
The vision of developmental local government, as outlined primarily in the
1998 White Paper on Local Government was that it would be the building
block on which the reconstruction and development of society is built, a
place in which the citizens could engage in a meaningful and direct way
with the institutions of the state. It is on this basis that having functional,
well-governed and well-capacitated municipalities become a priority.
Following the holding of successful Local government elections on 03
August 2016, measures were put in place to ensure that all municipalities
are duly constituted including in areas governed by coalitions. Working
together with SALGA, the department ran successful Councilor Induction
Programme, as part of the capacity building of Councilors.
Early in 2017, CoGHSTA hosted a successful Local Government Summit
which developed a five year multi sectoral agenda and Action plan for all
municipalities in the province. The Action plan seeks to localise the Back
to Basic Programme of local government to the most basic level of
governance which is the Ward committee. Some of the key resolutions
emanating from the Summit include amongst others:
Alignment of municipal water master plans to the Limpopo Water
Master Plan and the enhancement of capacity in water and waste
water management.
Ring fencing of 10% of budget for operations and maintenance.
Development of energy master plans and by-laws in line with the
land-use demand/service contributions, and the;
Alignment of the municipal plans with the provincial road master
plan.
Arising from these resolutions emerged a comprehensive plan of
supporting and monitoring municipalities based on our “Back to Basic”
Programme. The plan is being implemented as part of measures to ensure
that municipalities honour their legislative obligations.
Traditional Affairs
Chapter 12 of our Constitution recognizes the existence of traditional
leadership as an institution that holds custodianship over matters of
culture, custom, tradition and heritage. The current term of office of the
fourth Provincial House and Local Houses of Traditional leaders will be
coming to an end by May this year. When the fourth House of Traditional
leaders took office back in 2012, there were a lot of challenges which they
had to contend with. Amongst these include the following: Lack of
vehicles; appointment of Headman and Headwomen; Lack of staff in
traditional council offices; lack of office space for the members of the
Provincial House; lack of support from government during funerals of
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senior traditional leaders; determination of allowances for members of
local Houses; absence of a policy on Headmanship.
After five years of the House’s term of office, significant strides were made
in resolving a number of challenges. Of the (26) Traditional leadership
disputes referred to the House (21) cases were finalized. Other successes
of the House since 2012 include the following: Procuring of 175 vehicles
out of the target number of 185; striking reduction in the number of deaths
during initiation season; continuous building and refurbishment of offices;
appointment of staff in traditional council offices which has started;
Increase of funeral allowance from R30 000 to R50 000; the development
and conceptualization of the provincial SPLUMA Bill which is now ready to
become law; appointment of Headmen and women which is ongoing; and
the reestablishment of CONTRALESA new executive committee in the
province.
The department would like to build more capacity in supporting the work of
traditional leadership in the province going forward. This is evidenced by
measures we are putting in place to ensure that Traditional Councils are
reconstituted and offices of Traditional councils are refurbished. In the
2017/18 financial year we have allocated an amount of R42 million for the
purpose of reconstituting Traditional Councils, King and Queen Councils
included. Other outstanding matters to be dealt with by the incoming
executives of the Provincial and Local Houses relate to the development of
a policy on Headmanship; and the finalization of the Bill on Initiations
schools.
Our commitment to the people of Limpopo remains the same as it was
when the ANC led government took office in 1994. Our resources both
human and capital remain committed to the better life for all our people.
We call on everyone to join us in putting shoulders to the wheel in order to
move Limpopo forward.
I, Makoma Grace Makhurupetje, Member of the Executive Council for the
Department of Cooperative Governance, Human Settlements and
Traditional Affairs, hereby presents the 2016/17 Annual Report to the
people of Limpopo.
Ms. MG Makhurupetje MEC of the Department of Co-operative Governance, Human Settlements and Traditional Affairs Date: 31 July 2017
4. REPORT OF THE ACCOUNTING OFFICER
The performance of the Department in its efforts to fulfil its constitutional
mandate and its vision for integrated, sustainable human settlements in
line with outcome 8, 9 and 12 outlines the overview of the operations of
the department. The department has recorded significant progress on
improving financial management in municipalities through continuous
capacitation initiatives as well as monitoring and evaluation of this
important sphere of government. In support to initiatives of job
opportunities created, the province has received additional funding from
CoGTA on CWP, which provided about 25 000 job opportunities to
participants.
The institutions of Traditional Leadership have been supported through
coordination of stakeholders to participate in the initiation schools
management. Additional compensation for Traditional Leaders has been
streamlined with the pronouncement made by the President.
Human settlements sector has had its fair share of challenges for the past
two financial years. However the department has turnaround the situation
to ensure that services are delivered to the people of Limpopo as
expected.
The system of governance and accountability has matured in the
department, which is congruent to the expectations by the public at large.
This is credited to the management team of the department as well as
oversight institutions who quality check the departments’ obligations
initiatives regularly.
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
12
Overview of the financial results of the department:
Departmental receipts
Departmental receipts
2015/2016 2016/2017
Estimate Actual Amount
Collected
(Over)/Under Collection
Estimate
Actual Amount
Collected
(Over)/Under Collection
R’000 R’000 R’000 R’000 R’000 R’000
Sale of goods and services other than capital assets
1 317 1,638 (320) 1,217 1,363 (146)
Transfers received
- 15,709 (15,709) - 80 (80)
Interest, dividends and rent on land
2,446 15,999 (13,552) 2,868 4,816 (1,948)
Sale of capital assets
395 638 (243) 425 975 (550)
Financial transactions in assets and liabilities
1,444 2,005 (561) 1,569 1,481 88
Total 5,602 35,989 (30,385) 6,079 8,715 (2,636)
The Departmental revenue estimate for the year under review amounted
to R6.079 million and actual collection amounted to R8.715 million
resulting in an over collection by R2.636 million. The over collection is
largely attributable to interest earned from the Trust Account of the
attorneys who assisted the department with land purchase processes. The
Department sold old assets that were no longer economical to maintain
through an auction.
Revenue Tariff policy
The department made use of transversal tariffs as determined and
approved by the Provincial Treasury.
Free service rendered
There were no free services rendered by the department that would have
yielded significant revenue had a tariff been charged.
Irrecoverable debts written off
A total amount of R16 million in respect of Fruitless and Wasteful
expenditure as a result of blocked projects identified during 2007/08
financial year was written off as irrecoverable during the year under review
in terms of the transversal debt management policy approved by the
Provincial Treasury.
Programme Expenditure
Programme Name
2015/2016 2016/2017
Final
Appropriation
Actual
Expenditure
(Over)/ Under
Expenditure
Final
Appropriation
Actual
Expenditure
(Over)/Under
Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Administration 305 393 299 584 5 809 361 496 356 213 5 283
Human Settlements 1 699 428 1 234 023 465 405 1 724 497 1 637 118 87 379
Co-operative
Governance
242 942 240 738 2 204 279 576 275 121 4 455
Traditional
Institutional
Development
441 851 411 339 30 512 448 245 411 186 37 059
Total 2 689 614 2 185 684 503 930 2 813 814 2 679 445 134 176
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
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The Department spent R 2.180 billion in 2014/15 (which represented
85.9%), in 2015/16 spent R1.525 billion of R1.766 of the total allocation of
R2.690 billion (which represented 81%). In the year under review the
Department expenditure amounted to R2.680 billion or 95% of the total
budget allocation of R2.814 billion which shows an underspending of 5%.
The underspending is mainly as a result of the following:
Under-performance by some of rural housing contractors,
scattered development areas, difficult terrain and inclement
weather affected the delivery of Housing projects negatively.
Delay in procurement processes affected the purchase of Laptops
for Community Development Workers in Co-operative
Governance.
The planning processes between the Department and
Implementing agent (Department of Public Works) took longer
than anticipated and affected the implementation of Traditional
Councils’ offices refurbishment programme. Purchase of furniture
for Traditional Council offices could not be finalised in time.
Virements/roll overs
2016/17
Programme
Adjusted
appropriation
VIREMENT
REVISED
BUDGET
% R thousand
1. Administration 357,056 4,440 361,496 1%
2.Human
Settlements
1,729,492 (4,995) 1,724,497 0%
3. Cooperative
Governance
287,705 (8,129) 279,576 -3%
4.Traditional
Institutional
Development
439,561 8,684 448,245 2%
Total 2,813,814 - 2,813,814 0%
One virement was approved by Provincial Treasury after Budget
Adjustment process. The virement was mainly done to address shortfall on
leave gratuity, writing off of fruitless expenditure and other irrecoverable
debts that were approved for write off during the 2014/15 financial year as
well as addressing the shortfall transport costs linked to project
management activities under Human Settlements.
Rollover application totalling R121 million has been submitted to Provincial
Treasury for both Conditional Grants (Human Settlements Grant – R85
million) and Equitable Share (Traditional Council refurbishment, purchase
of furniture for Traditional Council offices and Laptops for Community
Development Workers – R36 million).
Unauthorised, fruitless and wasteful expenditure
The Department did not incur any unauthorised expenditure during the
2016/17 financial year as disclosed in the Annual Financial Statements.
Fruitless and wasteful expenditure amounting to R108 687 000 was
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
14
incurred and is disclosed in the note to the financial statements. Details of
the fruitless expenditure are disclosed in the Annual financial Statements.
Future plans of the department
Regular monitoring of service providers to ensure compliance with the
service contracts with the Department.
Public Private Partnerships
The Department did not enter into any Public Private Partnerships in the
previous financial years as well the current financial year.
Discontinued activities / activities to be discontinued
The Department did not discontinue any activities during the financial year
under review and there are no plans to discontinue any activities.
New or proposed activities
There were no new or proposed activities.
Supply chain management
No procurement was done through unsolicited bid proposals
during the year under review
The SCM processes and systems are in place to prevent
irregular expenditure and there is a strict adherence to the
legislations and policies
No Challenges experienced in SCM.
Gifts and Donations received in kind from nonrelated parties
None.
Exemptions and deviations received from the National Treasury
No exemptions and deviations were received from the National Treasury
Public Private Partnerships
The Department did not enter into any Public Private Partnerships in the
previous financial years as well the current financial year.
Events after the reporting date
There were no events (adjusting and non-adjusting), favourable and
unfavourable that occurred after the reporting date and the date of
approval of the Annual Financial Statements
Other
The Department has done away with the maintenance and management
of Assets register by means of excel spreadsheets and is currently using
BAUD system as required by Provincial Treasury and EXCO.
Challenges with filling of posts
Budget constraints which affected finalisation of the recruitment processes
in respect of advertised posts
Payment of PMDS
Payment of performance bonuses for employees on salary level 1 – 12
has been finalised. However payments for employees on level 13 and
upwards will be concluded in the next financial year.
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
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Relations with Organised labour
The department is in the upward spiral to ensure the well-being of
its employees for effective service delivery. This can only be
attained by continually strengthening the relationship between
Management and Organized Labour.
The Department continues to enjoy a prolific relationship with the
two Unions: NEHAWU and PSA. Our relationship created a culture
of legitimacy and fairness and the acceptance of co-dependence
on, and respect for each other.
Municipal Boundary Determinations for Limpopo Province
The redetermination of municipal boundaries, and the subsequent local
government elections on the 03 August 2016 led to a reduction of
municipalities in the Province from thirty to twenty seven. The number of
local municipalities has been reduced from twenty five to twenty two due to
the disestablishments and amalgamations. A new municipality was also
formed in the Vhembe District. These changes have resulted in deviations
from the planned and the achieved targets in so far as municipalities are
concerned.
Mosehana NR
Accounting Officer
Department of Co-operative Governance Human Settlements and
Traditional Affairs
Date: 31 May 2017
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
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5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT
To the best of my knowledge and belief, I confirm the following:
All information and amounts disclosed throughout the annual report are consistent.
The annual report is complete, accurate and is free from any omissions.
The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.
The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and
guidelines issued by the National Treasury.
The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.
The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable
assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.
The external auditors are engaged to express an independent opinion on the annual financial statements.
In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs
of the department for the financial year ended 31 March 2017.
Yours faithfully
Accounting Officer
Mosehana NR
Date: 31 May 2017
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
17
6. STRATEGIC OVERVIEW
6.1 Vision
Integrated Sustainable Human Settlements
6.2 Mission
To be an effective agent of change that delivers quality services to citizens
of Limpopo through:-
Promoting developmental cooperative governance,
Supporting municipalities and Traditional Leadership Institutions,
and
Optimally deliver integrated and sustainable human settlements
6.3 Values
Our values are underpinned by the Batho Pele Principles.
Service Excellence:
We shall strive to attain recognized standards of service quality, and mainta
in continuous improvement in service delivery.
Innovation:
We shall toil in the pursuit of excellence and innovation on the use of
information and
communication technology to enhance public service delivery.
Integrity:
We shall conduct our business with integrity at all times to inculcate a cultu
re of honesty and accountability among all our employees.
Prudence:
We shall exercise prudence and economy in running the business of the
Department and in
pursuance of its goals and the objectives of government.
Transparency:
We shall always ensure transparency in everything we do in order to build
trust and confidence with all our stakeholders.
Fairness and consistency:
We shall treat all our beneficiaries, suppliers and employees with fairness
and equity at all times.
Professionalism
We shall ensure that employees demonstrate high level of professionalism when interacting with all stakeholders
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
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7. LEGISLATIVE AND OTHER MANDATES
Constitutional Mandates
Section of the Constitution
Direct responsibility in ensuring compliance
Chapter 2, section 26
This section puts direct responsibility on the Department in ensuring that everyone has access to adequate housing, which is carried out through the ISHS programme
Chapter 7, section 154
The section directs the Provincial Government to support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions.
Legislative Mandates
Relevant Act Key Responsibilities
A. Public Service
Act of 1994 (as
amended) and
Regulations
To provide for the organization and
administration of the public service of the
Republic, the regulation of the conditions of
employment, terms of office, discipline,
retirement and discharge of members of the
public service.
Relevant Act Key Responsibilities
B. Public Finance
Management Act
1 of 1999 (as
amended) and
Regulations
To regulate financial management in the
national government and provincial
government, to ensure all revenue,
expenditure, assets and liabilities of the
government are managed efficiently.
C. Municipal
Finance
Management Act
of 2003 (as
amended)
To secure sound and sustainable
management of the financial affairs of
municipalities and other institutions in the
local sphere of government.
D. Division of
Revenue Act of
2012 (as
amended).
Section 214(1) of the Constitution requires
that every year a Division of Revenue Act
determine the equitable division of nationally
raised revenue between national
government, the nine provinces and 278
municipalities. This budget process takes
into account the powers and functions
assigned to each sphere of government.
The division of revenue process fosters
transparency and is at the heart of
constitutional cooperative governance.
E. Housing Act of
1997
The Department in consultation with
provincial organization must do everything in
its power to promote and facilitate the
provision of adequate housing in its province
within the framework of the national housing
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
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Relevant Act Key Responsibilities
policy.
F. Local
Government
Municipal
Structures Act of
1998
The MEC for local government in a province,
by notice in the Provincial Gazette must
establish a municipality in each municipal
area which the Demarcation Board
demarcates in terms of the Demarcation Act.
G. Local
Government
Municipal
Systems Act of
2000
The MEC for local government in the
province may, subject to any other law
regulating provincial supervision of local
government, assist a municipality with the
planning, drafting, and adoption of mid
review of its 5 year integrated development
plan.
H. Disaster
Management Act
2002
To provide for- an integrated and
coordinated disaster management policy
that focuses on preventing or reducing the
risk of disasters, mitigating the severity of
disasters, emergency preparedness, rapid
and effective response to disasters and
post-disaster recovery;
the establishment of national, provincial and municipal disaster management centres;
disaster management volunteers; and
Relevant Act Key Responsibilities
matters incidental thereto.
I. Development
Facilitation Act of
1995
To facilitate and speed up the
implementation of reconstruction and
development programmes and projects in
relation to land; and in so doing, to lay down
general principles governing land
development throughout the Republic.
J. Municipal
Systems Act of
The MEC for local government in the
province may, subject to any other law
regulating provincial supervision of local
government, assist a municipality with the
planning, drafting, and adoption of mid
review of its 5 year integrated development
plan.
K. Municipal
Structures Act of
The MEC for local government in a province,
by notice in the Provincial Gazette must
establish a municipality in each municipal
area which the Demarcation Board
demarcates in terms of the Demarcation Act.
L. Spatial
Planning and
Land Use
Management Act,
2013
To provide a framework for spatial planning
and land use management in the Republic;
and to specify the relationship between the
spatial planning and the land use
management system and other kinds of
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
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Relevant Act Key Responsibilities
planning.
M. Traditional
Leadership and
Governance
Framework Act
No.41 of 2003.
To provide for the recognition of traditional
communities; to provide for the
establishment and recognition of traditional
councils as well as providing for a statutory
framework for leadership positions within
institutions of traditional leadership.
N. Limpopo
Traditional
Leadership and
Institutions Act
No.6 of 2005
To provide for the recognition of traditional
communities; the recognition of traditional
councils, the election and appointment of
members of traditional councils, recognition
of traditional leaders, their removal from
office, their roles and functions, recognition
Relevant Act Key Responsibilities
of acting traditional leaders and regents, to
provide for funds of traditional councils and
management thereof; to provide for payment
of allowances for travelling expenses of
members of traditional councils; to provide
for meetings of royal family and traditional
councils; to provide for code of conduct; and
for matters connected therewith.
8. ORGANISATIONAL STRUCTURE
9. ENTITIES REPORTING TO THE MINISTER/MEC
None
PART B: PERFORMANCE INFORMATION
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23
1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES
The AGSA currently performs certain audit procedures on the performance
information to provide reasonable assurance in the form of an audit
conclusion. The audit conclusion on the performance against
predetermined objectives is included in the report to management, with
material findings being reported under the Predetermined Objectives
heading in the Report on other legal and regulatory requirements section
of the auditor’s report.
Refer to page 130 of the Report of the Auditor General, published as Part
E: Financial Information.
2. OVERVIEW OF DEPARTMENTAL PERFORMANCE
2.1 Service Delivery Environment
The department of Co-operative Governance, Human Settlements and
Traditional Affairs is mandated of ensuring that citizens of province have
appropriate housing, municipalities are supported in delivering variety of
services to communities, promoting co-operative governance and
providing support to traditional leaders and communities under their
jurisdiction.
2.1.1 Human Settlements
The Human Settlements Development is charged with the responsibility of
ensuring formalization of informal settlement, building of low cost houses,
registration of title deeds, acquisition of land for human settlement and
facilitation of municipal accreditation processes. In the past financial year
the department has built 2 125 houses in (2014/15), 8 588 in 2015/16 and
the year under review has managed to build 10 741 houses across all
housing Programmes
Human Settlements Development Grant budget allocation for 2016/17 is
R1, 603,212,400 including rollover of R394 842 00. Total spending on
Conditional Grant as at 31 March 2017 amounted to R1, 518,243,737.37
out of the total budget of R1, 603,212,400 budget which translates to 95%.
2.1.2 Co-operative Governance
In the 2016/17 financial year the Municipal Demarcation Board finalised
the process of reconfiguration Municipalities in the province. The board on
the 10th August 2016 recommended for the disestablishment of Aganang
and Mutale municipalities in the Capricorn and Vhembe Districts
respectively, Merging of Mookgophong and Modimolle, Tubatse and
Fetakgomo municipalities in the Waterberg and Sekhukhune districts and
a new municipality in the Vhembe District was established being Lim 345.
The process of disestablishment and creation of municipalities affected the
2016/17 Annual Performance Plan whereby local municipalities were
reduced from 25 to 22, District Municipalities remained at 5 and as a result
the province has a total of 27 from 30 municipalities. As a result, all
municipalities affected by the transition process were allocated transitional
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24
conditional grants for a period two financial years to assist with
administration processes.
The department continues to provide support municipalities with regard to
appointment and retention of critical section 54A and 56 Managers posts
in line with the Municipal Systems Act regulations. The table below reflect
the status of Municipal Administration vacancies of Senior Managers at
end March 2017.
Vacant managers
category
Municipalities
Municipal Managers Lim 345, Mopani, Vhembe, Musina, Ba-
Phalaborwa, Greater Giyani, Polokwane,
Lepelle-Nkumpi, Capricorn, Thabazimbi,
Mogalakwena and Blouberg
Chief Financial
Officers
LIM 345, Vhembe, Thulamela, Thabazimbi,
Mogalakwena, Lephalale, Polokwane, Bela-
Bela, Capricorn, Greater Giyani, LIM 368 and
Sekhukhune
Technical Services
Managers
Lepelle-Nkumpi, Vhembe, LIM 345, Mopani,
Greater Letaba, Mogalakwena, Thabazimbi
Polokwane and LIM 476 and Musina
Community Services LIM 368, LIM 345, Bela-Bela, Thulamela,
Molemole, Makhuduthamaga, Polokwane,
Greater Giyani and Thabazimbi
Corporate Services Bela-Bela, LIM 345, LIM 368, Musina,
Vhembe, Ephraim Mogale, Greater Tzaneen,
Greater Giyani, Maruleng, Mogalakwena and
Vacant managers
category
Municipalities
Thabazimbi.
Development and
Planning
LIM 345, Thulamela, Mogalakwena, LIM 368,
Makhuduthamaga, Ephraim Mogale,
Polokwane, Greater Giyani, Greater Giyani
and Blouberg
The department provides continuous support to municipalities on
enhancing public participation and municipal finance through ward
committee systems which out 566 ward committees, 522 are fully
established and 64 are still outstanding. In the municipal programme the
department has conducted AFS readiness assessments whereby 27
municipalities managed to submit AFS to Auditor General for auditing
purposes with exception of Mutale, Mogalakwena and Thabazimbi due to
strikes and assets attachments respectively.
Municipal Infrastructure Grant (MIG) is the largest share of transfers to
municipalities aimed at supporting the government’s objective of
expanding service delivery. In the 2016/17 financial year, municipalities
were allocated R3.127 billion and as at end of March 2017, 63% of the
allocated budget was spent.
2.1.3 Traditional Affairs
Traditional leaders continue to playing an important role in the
development and growth communities in the province. Traditional councils are provided with administrative support that include payment of salaries,
provision of tools of trade, furniture and conducting workshops for
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
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traditional surgeons and protocol. In the period under review, the
department has managed to purchase furnisher for King Mphephu
Ramabulana staff members, 185 cell phone contracts for traditional leader
were also paid and purchase of cars for traditional leaders.
The Department is still overwhelmed with problems of Traditional
Leadership Claims and Disputes that resulted to the establishment of the
Kgatla Commission in 2012 mandated to management of claims. The
commission since its establishment it has finalised 416 of 551 cases
received, 50 cases are on report phases and to date Premier has made
determination on 293 cases.
Management of initiation schools in the province remains to be of high quality mainly through fortified relations with relevant patrons. The province has successfully recorded the lowest recoded deaths of initiates whereby most deaths have been recoded from the unregistered initiation schools.
2.2 Service Delivery Improvement Plan
The department has completed a service delivery improvement plan. The
tables below highlight the service delivery plan and the achievements to date.
Main services and standards
Main services
Beneficiaries Current/actual standard of
service
Desired standard
of service
Actual achievement
Number of
housing
stock/RDP
rectified
RDP house
dwellers
60 500 286
Main services
Beneficiaries Current/actual standard of
service
Desired standard
of service
Actual achievement
Number of
rental
units built
Hostel
dwellers
0 150 0
Batho Pele arrangements with beneficiaries (Consultation access etc.)
Current/actual arrangements
Desired arrangements
Actual achievements
Community Participation
4 Imbizo’s 2 Imbizo’s
Service delivery information tool
Current/actual information tools
Desired information tools
Actual achievements
CoGHSTA news, brouchers
Print media, electronic media
Newsletters, Post, Departmental
Complaints mechanism
Current/actual complaints mechanism
Desired complaints mechanism
Actual achievements
Departmental, presidential, departmental hotlines, walk-ins, [email protected]
99% resolved
Queries resolved within 30 days
SMS communication with complainants and applicants
100% resolved.
Challenges
Insufficient budget to implement the project of SMS complaints
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2.3 Organisational environment
The Department has managed to fill the strategic posts during the year which include the post of the Accounting Officer/HOD and Deputy Director-General: Cooperative Governance and Traditional Affairs. The appointments would assist in ensuring accountability and management stability in the Department.
The Department is however still experiencing a challenge of filling posts at an operational level and more especially in the Traditional Council offices where there is high turn-over due to retirement of most of the employees. The CFO is seconded to the Department of Education and acting CFO is appointed.
Summary of SMS staff establishment
Category Total posts on
establishment
Total posts
graded/funded
Total posts
filled
% of filled
posts
Directors 46 44 graded and
met the grade,
02 didn’t meet
the expected
grade (13) and
waiting for
review from
Office of the
Premier.
40 91%
Category Total posts on
establishment
Total posts
graded/funded
Total posts
filled
% of filled
posts
Chief
Directors
17 15 graded and
met the grade,
02 did not meet
the expected
grade (14) and
awaiting for
review from
Office of the
Premier.
13 87%
DDG’s and
above
5 5 5 100%
Total 68 64 58 91%
During the year under review provincial of Treasury has issued requirements for filling of vacant funded which prolongs the recruitment process.
2.4 Key policy developments and legislative changes
None
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3. STRATEGIC OUTCOME ORIENTED GOALS
The Department has considered the strategic direction of Human Settlements,
Co-operative Governance and Traditional Affairs to benchmark National
Priorities. The outlined strategic goals have accommodated the socio-
economic environment of the Limpopo Province
Strategic
Goal
Goal
statement
Outputs Progress
1. A
professiona
l workforce
that is
proactive,
responsive
and geared
towards
the
realisation
of a
developme
ntal state
To render
professional
support and
create an
enabling
environment
for efficient
and effective
service
delivery
1.1
Professional
corporate
services
support
Queries logged
through
Departmental,
Premier, and
Presidential
hotlines had been
resolved
330 vacant posts
filled within the
establishment
Investigated all
cases that were
lodged on
corruption and
anti-fraud
1.2 Financial
management
support and
advisory
All undisputed
invoices have
been paid within
30 days
Strategic
Goal
Goal
statement
Outputs Progress
services for
effective
accountability
Achieved
unqualified
opinion with
matters of
emphasis in three
consecutive years
2014/15, 2015/16
& 2016/17
financial years
2. Integrated
human
settlements
with socio-
economic
opportunitie
s.
Eradicate
informal
settlements
and facilitate
equitable
access to
adequate
housing in an
integrated
and
sustainable
manner.
2.1 Housing
development
properly
planned by
October each
year
Multi-year
Housing
development plan
reviewed
2.2 Reduced
housing
backlog by
80 600 units
by 2019
21 563 houses
completed across
all housing
programmes
5 504 sites
connected to
basic water and
sanitation services
2.3
Transferred
22 605
housing
3 492 housing
units have been
transferred to
individual
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Strategic
Goal
Goal
statement
Outputs Progress
properties to
beneficiaries
by 2019
beneficiaries
8 rental units
devolved to
municipalities in
terms of the
Housing Act
171 projects had
been approved
10 389 Job
opportunities were
created
3. Sustainable
Cooperativ
e
Governanc
e system
• Monitor
and play
oversight
role in all
municipali
ties in
order to
improve
performa
nce and
good
governan
ce.
• Co-
ordinate
and
3.1 Improved
support and
oversight in
all
municipalities
by 2019
Supported all
municipalities in
improving
financial
management
All municipalities
have legally
compliant IDP’s
Strategic
Goal
Goal
statement
Outputs Progress
provide
support to
Traditiona
l
Leadershi
p
Institution
s in order
to
enhance
Local
Governan
ce.
4. Traditional
Affairs
Administrative
support to the
institutions of
Traditional
Leadership in
the Province
provided
annually
4.1
Supported all
established
institutions of
Traditional
Leadership
by 2019
Traditional Councils
are provided with
administrative support
that includes: payment
of salaries, provision
of tools of trade like
cell phone airtime and
furniture as well as
conducting of
workshops for
Traditional Surgeons
and protocol
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4. PERFORMANCE INFORMATION BY PROGRAMME
4.1 Programme 1: Administration
Purpose: To provide effective leadership in strategic planning of the department, management and administrative support to the core functions of the department.
This will be ensured through continuous refinement of corporate policies, skills development, efficient and effective financial management, structures and systems in
compliance with legislation and best practice and championing Batho Pele principles and service delivery.
Sub-programmes
Office of the MEC
Corporate Services
Strategic objectives for the financial year under review
Professional corporate service(s) support
Financial management support and advisory services for effective accountability.
Strategic objectives, performance indicators, planned targets and actual achievements
To ensure efficiency and promote accountability the department has developed and / or reviewed the following policies:
IP address Management Policy
ICT firewall policy
Leave of Absence Management Policy
Lost and Damaged Assets Management Policy
Service Excellence Awards Policy
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Overtime policy
Performance Management and Development Systems Policy
During the year under review, training needs were identified and workplace skills plan developed to address skills gaps. A total of 1 403 employees were
trained. The Internship and learnership programmes were also implemented
The Department achieved unqualified audit opinion for the 2015/16 financial year as a result of the underspending in Human Settlements and Traditional
institutional programmes
Strategic objectives:
Programme Name: Administration
Strategic objectives Actual Achievement
2015/2016
Planned Target
2016/2017
Actual Achievement
2016/2017
Deviation from planned target
to Actual Achievement for
2016/2017
Comment on
deviations
1. Professional
corporate
service(s) support
99% 99% of resolved queries
logged through Departmental
toll free, Premier and
Presidential hotline
100% of resolved queries
logged through Departmental
toll free, Premier and
Presidential hotline
1% Improved data
capturing and
tracing of
complainants
2. Financial
management
support and
advisory services
for effective
accountability.
100% of
claims/Vouchers
processed with 30
days
Process 100% of completed
claims/Vouchers with 30days
100% of claims/vouchers
processed with 30 days
None None
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Performance indicators
Programme : Administration
Strategic Objective 1: Professional corporate service(s) support
Performance Indicator Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual Achievement
2016/2017
Deviation from planned
target to Actual
Achievement for
2016/2017
Comment on
deviations
1. Number of posts
to be filled
20 posts filled 69 posts
filled
147 60 56 4 Budget constraints
which affected
finalisation of the
recruitment processes
in respect of
advertised posts
2. Number of officials trained as per WSP
1300 training
sessions
conducted
1858 1 298 1 100 1403 303 Accelerated
implementation of
MOU with National
School of Government
for training
programmes
3. Percentage of women represented
54% 55% 55% of total
component is
women
50% 55% 5% Level 1-8 contributed
to the higher
representation
4. Percentage of persons with disability represented
0,61% 0,67% 0.71% 2% 0.7% 1.3% Candidates not
meeting minimum
requirements
5. Percentage of resolved queries logged through
99% 100% 99% 99% 100% 1% Improved data
capturing and tracing
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Programme : Administration
Strategic Objective 1: Professional corporate service(s) support
Performance Indicator Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual Achievement
2016/2017
Deviation from planned
target to Actual
Achievement for
2016/2017
Comment on
deviations
the Departmental toll free, Premier and presidential hotline
of complainants
6. Percentage of reported anti- fraud and corruption cases Investigated
85%
(40 of 47
cases)
100% 88% 100% 100% 0 None
Programme : Administration Strategic Objective: Financial management support and advisory services for effective accountability
Performance Indicator Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual Achievement
2015/2016
Planned Target 2016/2017
Actual Achievement 2016/2017
Deviation from planned target to Actual Achievement for
2016/2017
Comment on deviations
7. Percentage of undisputed invoices for goods and services including the housing grant paid within 30 days
100% 100% 100% 100% 100% 0 None
8. Type of audit opinion
Unqualified opinion without
Achieved Unqualified Opinion
Achieved Unqualified opinion with
Achieve
Unqualified
Achieved Unqualified opinion with matters of
Achieved Unqualified
opinion with matters of
Material underspending of the conditional grant
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Programme : Administration Strategic Objective: Financial management support and advisory services for effective accountability
Performance Indicator Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual Achievement
2015/2016
Planned Target 2016/2017
Actual Achievement 2016/2017
Deviation from planned target to Actual Achievement for
2016/2017
Comment on deviations
matters of emphasis
without Matter of emphasis
matters of emphasis
opinion without
matters of
emphasis
emphasis emphasis
9. Percentage of allocated budget spent
74,7% 82% 81%
Spend 100% of
allocated budget
95% 5% Underspending on Human settlements development grant as a result of work in progress (1406 foundations casted and 1697 wall plates constructed)
Reasons for all deviations
Posts filled were not suitable for people with disabilities
Budget constraint in respect of filling posts
Underspending on Human settlements development grant as a result of work in progress (1406 foundations casted and 1697 wall plates constructed)
Strategy to overcome areas of under performance
Priority will be given to targeted posts to be filled by people with disability during 2017/18
Forward planning with regard to approvals from the Provincial Treasury and recruitment processes
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Changes to planned targets
None
Linking performance with budgets
Underspending of R21.270 million is mainly as a result of delayed payments for accelerated pay progression for employees who are no longer in the
Department and whose banking details took time finalize.
Sub-programme expenditure
Sub- Programme
Name
2015/2016 2016/2017
Final
Appropriation
Actual
Expenditure
(Over)/Under
Expenditure
Final
Appropriation
Actual
Expenditure
(Over)/Under
Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Office Of The MEC 1 902 1 902 - 1 902 1 902 -
Corporate Services 303 491 297 682 5 809 359 594 354,311 5,283
Total 305 393 299 584 5 809 361 496 356,213 5,283
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4.2 Programme 2: Integrated Sustainable Human Settlements
Purpose: To ensure the provision of housing development, access to adequate accommodation in relevant well located areas, access to basic services and
access to social infrastructure and economic opportunities
To achieve the above mentioned purpose, the programme is divided into three sub-programmes:
Sub-programmes:
Housing Needs, Research and Planning Housing Development, Implementation Planning and Targets Housing Assets Management and Property Management
Strategic objectives for the financial year under review
Housing development properly planned by October each year
Reduced housing backlog reduced by 80 600 units by 2019
Transferred 22 605 housing properties to beneficiaries by 2019
Strategic objectives, performance indicators, planned targets and actual achievements
The department is on a positive trajectory of recovering from challenges experienced during 2013/14 and 2014/15 financial years. During the year under
review the department has received roll over amounting to R394, 842, 000.00 on HSDG, therefore setting the grant to R1, 603, 212, 000.00. Expenditure as
at the end of the financial year was R1, 517,376,062 translating to 94.6% of the adjusted allocation of 2016/17 and 2015/16 roll over business plan. As a
result significant progress was recorded on construction of housing units on the rural programme. In contrast, the various housing programmes are not
performing as expected therefore will impact realisation of strategic objectives. A total of 8 targets of 26 set during the year under review were achieved
contrast to improved budget expenditure.
In order to correct the situation the department will ensure that activity planning is strengthened to improve on implementation of programmes. Database of
contractors has been appointed in order to deal with performance of contracts and enable department to recover quickly in case of non-adherence to contract
terms and conditions by service providers. Progress on FLISP, CRU and Military Veterans still remains a challenge.
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Strategic objectives:
Programme Name: Integrated Sustainable Human Settlements
Strategic objectives Actual Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from planned target
to Actual Achievement for
2016/2017
Comment on deviations
3. Housing development
properly planned by
October each year
0 Formalize 4
settlements
0 4 Land claims
Prospecting rights and intention of
municipalities to reprioritise
developments.
Municipalities Delay to comment
and approve layout plans
4. Reduced housing
backlog reduced by 80
600 units by 2019
8 605 13 750 10 741 3 009 The deviation is as a result of rollover
projects and implementation of
turnaround strategy
5. Transferred 22 605
housing properties to
beneficiaries by 2019
1 978 7 535 1 017 6 464 Majority of properties to be transferred
are situated in un-proclaimed townships
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Performance indicators
Programme: Integrated Sustainable Human Settlements
Strategic Objective: Housing development properly planned by October each year
Performance
Indicator
Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from
planned target to
Actual
Achievement for
2016/2017
Comment on
deviations
1. A Multi Year
Housing
Development
plan/APP
developed by
October
Multi-year Housing
Development plan
reviewed
Multi-year
Housing
Development
Plan reviewed
Reviewed
Multiyear Human
Settlements
development plan
Review Multiyear
Human
Settlements
development plan
Reviewed
Multiyear Human
Settlements
development plan
None None
2. Number of
informal
settlements
formalised
through township
establishment
Not Achieved 0 0 Formalize 4
informal
settlements
0 4 Steenbokpan
in Lephalale
LM has been
reprioritised
from
residential to
mining.
Municipalities
delay to
comment and
approve layout
plans in line
with SPLUMA
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Programme: Integrated Sustainable Human Settlements
Strategic Objective: Housing development properly planned by October each year
Performance
Indicator
Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from
planned target to
Actual
Achievement for
2016/2017
Comment on
deviations
3. Number of Hectares of land acquired
0 0 131 hectares of
land acquired at
Greater Tzaneen
Municipality –
Hamawasha and
Greater Tubatse
Municipality -
Mooifontein
42.5ha 0 42.5ha Land claim in
Motetema portion
21 of the farm
Welverdiend
4. Number of
planned human
settlement
(housing)
developments
based on IDPs’,
National and
Provincial
Priorities
approved
(Number of
development
sites identified)
N/A 10 000 12 000 15 000 13 639 1 361 Thabazimbi returned the allocation due to inadequate bulk infrastructure
Late submissions of development areas by municipalities
5. Number of
municipalities
Prepared one
municipality for
0 One Municipality
prepared for level
Confirm Polokwane
0 4 Level 2
accreditation
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Programme: Integrated Sustainable Human Settlements
Strategic Objective: Housing development properly planned by October each year
Performance
Indicator
Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from
planned target to
Actual
Achievement for
2016/2017
Comment on
deviations
accredited on
Human
settlements
provision
level two
Accreditation
two accreditation
Three
municipalities
prepared for level
accreditation
(accreditation
preparatory
meetings for
Makhado, Musina
and Greater
Tubatse local
municipalities
were held)
municipality for Level 2 Accreditation Confirm
Lephalale,
Greater Tubatse
and Makhado
municipalities for
level 1
accreditation.
for Polokwane
LM recently
concluded by
the
Assessment
Panel
Level 1 All 4
Councils could
not provide all
required
information for
level 1
Business
Plan.
6. Number of beneficiaries exposed to consumer education.
N/A N/A N/A 3 000 2 578 422 Poor turnout of
beneficiaries
7. Number of municipalities capacitated and supported with
2 (Ellias
Motsoaledi &
Tubatse
2 5 (Lephalale, Elias
Motsoaledi,
Polokwane,
Provide support
to 5
municipalities
5 0 None
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Programme: Integrated Sustainable Human Settlements
Strategic Objective: Housing development properly planned by October each year
Performance
Indicator
Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from
planned target to
Actual
Achievement for
2016/2017
Comment on
deviations
regard to human settlement (housing) development planning
Supported Greater Tzaneen
and Greater
Tubatse)
through UISP
8. Number of Acts
passed and/or
policy guidelines
approved
Draft provincial
housing allocation
policy available.
Informal
settlement bill still
with the Provincial
Legislature for
gazetting.
0 0 Pass 1 Policy /
Act
0 1 Policy / Act Delay in
submission of
inputs by key
stakeholder.
Provincial
Allocation Policy
was finalised and
submitted for
approval
9. Number of
research papers
completed
None 0 0 1 0 1 Research Paper
on Disaster
Programme was
recently finalised
and submitted for
approval
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
41
Performance indicators
Programme: Integrated Sustainable Human Settlements
Strategic Objective: Reduced housing backlog reduced by 80 600 units by 2019
Performance
Indicator
Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from
planned target to
Actual
Achievement for
2016/2017
Comment on
deviations
10. Number of new
housing units
completed in the
province across
all housing
programmes
being utilised by
the province
2 877 2 065 8 588 9 904 10 135 231 The deviation is as a
result of rollover projects
and implementation of
turnaround strategy
11. Number of
Housing stock /
RDP rectified
95 60 0 500 220 280 Delay in appointment of contractors for 2016/17
Underperformance by some of the contractors due to scattered development areas.
12. Number of
households
connected to
basic services as
part of the
N/A 0 1 091 6 900 0 6 900 None availability of
bulk services in
most informal
settlements.
Most informal
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
42
Programme: Integrated Sustainable Human Settlements
Strategic Objective: Reduced housing backlog reduced by 80 600 units by 2019
Performance
Indicator
Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from
planned target to
Actual
Achievement for
2016/2017
Comment on
deviations
informal
Settlements
Upgrading
Programme
settlements are
prioritised for
implementation in
2017/18
13. Number of rental
units built (CRU)
and (SH)
N/A 0 0 150 0 150 Delay in relocation of
hostel dwellers due to
readiness of the areas
for which they are
relocated.
14. Number of new
sites connected
to basic water
and sanitation
services as part
of the Integrated
Residential
Development
Programme
N/A 0 346 3 193 4 067 874 The deviation is as a
result of a deliberate
strategy to supply more
serviced sites in urban
areas to curb informal
settlements
mushrooming.
15. Number of Enhanced Peoples Housing Process units completed
N/A 0 N/A 100 90 10 The remaining 10 units
are work in progress and
being finalised.
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
43
Programme: Integrated Sustainable Human Settlements
Strategic Objective: Reduced housing backlog reduced by 80 600 units by 2019
Performance
Indicator
Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from
planned target to
Actual
Achievement for
2016/2017
Comment on
deviations
16. Number of Disaster units to be completed
N/A N/A N/A 358 286 72 The remaining 72 units
are work in progress and
being finalised.
17. Number of Military Veterans Units to be completed
N/A N/A N/A 130 10 120 Delay in verification
of beneficiaries by
DMV and SAMVA.
Delay in finalisation
of the house
specifications and
costing
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
44
Performance indicators
Programme: Integrated Sustainable Human Settlements
Strategic Objective: Transferred 22 605 housing properties to beneficiaries by 2019
Performance
Indicator
Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from
planned target to
Actual Achievement
for 2016/2017
Comment on
deviations
18. Number of units
transferred
through the
Enhanced
Extended
Discount Benefit
Scheme
135 188 0 100 0 100 Delays in the issuing of
clearance certificates
for individual properties
by the municipalities
19. Number of units
Registered and
Endorsed
767 309 1 978 7 535 1017 6 518 Majority of properties to be transferred are situated in un-proclaimed townships.
20. Number of rental
units devolved to
municipalities in
terms of section
15 of the Housing
Act, 97
None 3 3 3 2 1 Last property awaiting
final transfer
21. Number of
projects approved
80 32 61 70 78 8 Addition projects
approved to address
backlog
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
45
Programme: Integrated Sustainable Human Settlements
Strategic Objective: Transferred 22 605 housing properties to beneficiaries by 2019
Performance
Indicator
Actual
Achievement
2013/2014
Actual
Achievement
2014/2015
Actual
Achievement
2015/2016
Planned Target
2016/2017
Actual
Achievement
2016/2017
Deviation from
planned target to
Actual Achievement
for 2016/2017
Comment on
deviations
22. Number of job
opportunities
created
466 392 1 325 5 402 8 672 3 270 More jobs created in
line with the turn-
around strategy with
increased housing
delivery.
23. Number of
beneficiaries/subsi
dies approved on
the Housing
Subsidy
System(HSS)
N/A 10 171 8 459 15 000 8 128 6 872 Only 8 000units were
allocated and
contractors appointed
for 2016/17
24. Number of reports
on rental disputes
compiled
N/A N/A 1 1 1 0 None
25. Number of
Reports submitted
(MEC advisory
Panel)
1 1 1 1 1 0 None
26. Number of
Finance-linked
individual subsidy
programme
(FLISP) units
completed
n/a 60 43 763 6 757 Insufficient number of
housing stock, priced
between R350,000 –
R450,000.
Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA
Province of Limpopo
46
Reasons for all deviations
Land claim in Motetema Portion 21 of the farm Welverdiend
Thabazimbi returned the allocation due to inadequate bulk infrastructure.
Municipalities Delay to comment and approve layout plans
Poor turnout of beneficiaries
Rollover projects and implementation of turnaround strategy
Delay in relocation of hostel dwellers due to readiness of the areas
for which they are allocated
Late submissions by municipalities
Delay in submission of inputs by key stakeholders
None availability of bulk services in most informal settlements
Delay in appointment of contractors for 2016/17
Underperformance by some of the contractors due to scattered development areas.
Delay in verification of beneficiaries by DMV and SAMVA
Insufficient number of housing stock, priced between R350 000 –
R450 000.
Strategy to overcome areas of under performance
Approve 9 Provincial Priority and Integrated Projects
Planning, Introduce Land identification, acquisition and township
establishment that promote mixed income housing typologies in
growth economic areas, e.g. Polokwane, Lephalale, Greater Tubatse,
Musina-Makhado SEZ, Mogalakwena, Greater Tzaneen, Bela-Bela,
Engagement of external expertise to enhance in-house project
management capacity
Rural development
Focus on high population concentration areas e.g. Thulamela-LIM 345
Contracting strategies
Multiyear appointment
Mix of highly capacitated and emerging contractors
Financial Performance Guarantees required for appointed contractors
Private-Public partnership
Partnership with banks and other private Developers
Redevelopment of bulk infrastructure, e.g. DBSA
Assisting all the municipalities with the development of
Municipal Spatial Development Frameworks
Land use management schemes and
Credible housing chapters in the IDP’s.
A provincial housing demand database will also be developed
housing demand management system (Bio-Metrix)
Land audit
Quantification of informal settlements and packaging of projects
Changes to planned targets
None
Linking performance with budgets
Underspending is mainly on Human Settlement projects (Rural Housing)
which is attributed to underperformance by other contractors, development
areas characterised by difficult terrains and inclement weather
Changes to planned targets
None
Sub-programme expenditure
2015/2016 2016/2017
Sub- Programme Name Final Appropriation
Actual Expenditure
(Over)/Under Expenditure
Final Appropriation
Actual Expenditure
(Over)/Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Housing Needs , Research and Planning
173 126 171 659 1 467 64 582 64 030 552
Housing Development, Implementation, Planning and Target
1 486 675 1 027 312 459 363 1 597 569 1 511 209 86 360
Housing Asset Management and Property Management
39 627 35 052 4 575 62 346 61 879 467
Total 1 699 428 1 234 02