DEPARTMENTAL PERFORMANCE REPORT

OCTOBER-DECEMBER 2011

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CONTENT

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1. Delivery performance2. Annual Performance Plan Monitoring3. Overall Departmental Performance4. Communication and Outreach key5. Delivery Agreement Outcome 86. Job Creation7. Accreditation of Municipalities8. Turnaround Strategy9. Entities performance10. Matters for action and redress11. Financial issues

Programme / Sub-programme Total Approved Targets

Targets AchievedTotal and (%)

Targets Not AchievedTotal and (%)

DG’s Office 35 26 (74) 9 (26)

Corporate Services (CS) 43 27 (63) 16 (37)

Housing Policy, Research and Monitoring (HPRM)

22 15 (68) 7 (32)

Housing Planning and Delivery Support (HPDS)

117 58 (50) 59 (50)

Housing Development Finance (HDF) 32 30 (94) 2 (6)

Strategic Relations and Governance (SRG)

54 50 (93) 4 (7)

National Department of Human Settlements (DHS)

303 206 (68) 97 (32)

OCTOBER – DECEMBER 2011 PERFORMANCE STATUS

OVERALL DEPARTMENTAL PERFORMANCE

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COMMUNICATION AND OUTREACH KEY

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• Habitat Week held in the Eastern Cape, Mandela Bay Metropolitan Council. Activities included coordinating the launch of a multipurpose sports hall, hosting the Indaba on ‘Vision 2030’ at the Mandela Bay University and handover of housing project by Minister at Chetty.

• Launch of Public Private Partnership initiative together with Anglo American arising from the ‘Each One Settle One’ call to action.

• Deputy Minister led a successful campaign on Aids awareness in the town of Beaufort West in the Western Cape.

• Working breakfast with Women in Construction sector in Gauteng

• 16 Days Campaign programme. In this 16 days event, sixteen vulnerable families benefited when they received a home from government

• Supported Gauteng, Eastern Cape, Limpopo, North West and Mpumalanga in hosting provincial ‘Vision 2030’ indaba’s and Youth Summits

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OUTPUT 1: ACCELERATED DELIVERY OF HOUSING OPPORTUNITIES

Sub-output and Targets Progress reported up to September 2011

Planned actions

1.1 Upgrading of households in informal settlements

Target:

Upgrading of 400 000 households in informal settlements with access to secure tenure and basic services by 2014

2010/2011 – Upgrading of 20 000 households in informal settlements with access to secure tenure and basic services

Delivery as at 30 September 2011:Households provided with serviced sites and secure tenure: 83 412 which is20.9% of the 2014 target set.

The output progress is on track.

Process of categorization of informal settlements currently underway to determine good location, poor geo-technical or unsafe topography, density and in-situ upgrading versus relocation options;

Target 49 cities and municipalities inclusive of 45 prioritized by July Cabinet Lekgotla decision;

Department will ensure in the MTEF improved resource allocations by Provinces to ensure output is achieved.

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OUTPUT 1: ACCELERATED DELIVERY OF HOUSING OPPORTUNITIES

Sub-output and Targets

Progress reported up

to September 2011Planned actions

1.2 Implementation of the National Upgrading Support Programme

49 municipalities to be supported by the NUSP programme

9 Provincial NUSP structures established by end of 2011/12

The NUSP has been established.

A total of 40 (81%) out of 49 targeted Municipalities have been assessed for technical assistance requirements;

Department has initiated establishment of Provincial Upgrading Support structures to augment limited municipal resources and expertise

1. National Programme Management Unit (PMU) is in process of being established to inter alia coordinate and align funding to achieve improve delivery performance and outputs, and oversee provincial and municipal delivery on the output.

2. The PMU will frame delivery/business plans and oversee coordination, planning, funding and implementation through the NUSP.

3. The Department is taking steps to ensure Provincial and Municipal budgets over MTEF are reprioritized to upscale the Informal Settlement Upgrading Programme;

4. A process to assemble technical capacity will commence to improve the programme performance, in April 2012.

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Sub-output and Targets Progress reported up to September 2011

Planned actions

1.3 Provision of 80 000 well located rental accommodation units by 2014:

• 24 312 Social

• 20 000 CRU

• 8 497 Institution

• 26 600 Private

(1) 2917 Social Housing Units

(2) 3000 Communal Residential Units

(3) 513 Institutional Units

(4) Zero

The Community Rental Unit Programme has achieved 32,5% of target.

Current Provincial funding allocations provides for 40% of target to be achieved;

The NHFC has facilitated the provision of investment into the private rental sector to the value of R1.2bn;

National Department initiated a process to augment the legislated mandate of Social Housing Registration Authority with new responsibilities including regulation of CRU & facilitation of institutional subsidies and private rental;

The Department has requested the NHFC to facilitate project funding with various financial institutions to fund R2 billion of pipeline projects;

Policy and Programme proposal to be developed on backyard rental to improve low income rental and communal housing opportunities.

OUTPUT 1: ACCELERATED DELIVERY OF HOUSING OPPORTUNITIES

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Sub-output and

Targets

Progress reported up to September 2011

Planned actions

1.4 Accreditation of 27 municipalities to perform the housing function

Targets: Accredit 6 metros to level 3 by 2014

Accredit 21 additional municipalities to level 2 by 2014

A total of sixteen Municipalities have been assessed by the National Capacity and Compliance Assessment Panel for level 2 accreditation;

A total six Metropolitan and two District municipalities were issued with compliance certificates for level 2 by the National Department in March 2011 and still are to be accredited by the Provinces.

1. The Department has facilitated the development and conclusion of Implementation Protocols between the Provinces and Municipalities to ensure formal accreditation up to level 2;

2. A process to resolve operational and funding implications for accreditation has been initiated;

3. A programme to evaluate and improve accredited Municipalities’ performance on planning, funding and implementation of programmes, will be initiated.

OUTPUT 1: ACCELERATED DELIVERY OF HOUSING OPPORTUNITIES

OUTPUT 2: IMPROVED ACCESS TO BASIC SERVICES

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Sub-output and Targets Progress reported up to September 2011 Planned actions2.1 to 2.4 Improved

access to basic services

Household access to:• Basic water

should be 100% by 2014,

• Basic sanitation should be 100% by 2014,

• Refuse removal should by 75% by 2014,

• Electricity should be 92% by 2014

The current progress on achieving the outcomes are as compiled by the Department of Cooperative Governance as at 30 September 2011:

Access to Water - 94%Access to Sanitation - 82%Access to Electricity - 84%Access to Refuse Removal - 72%

An interdepartmental Human Settlements and Basic Services Task Team has been established and a joint programme of action adopted.

A Ministerial Task Team has been established to assist in the determination of agreed national norms and standards in the provision of sanitation.

The DeCoG, as the agreed Department that is solely responsible for the output, will utilize the HSBSTT to resolve norms and standards and required outputs with each of the responsible sector Departments.

The National, Provincial as well as Metropolitan and District Municipalities must improve participation in the HSBSTT and ensure within the next six months a clear set of figures are available for the various backlogs, provision of the services categories and impact on backlog.

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OUTPUT 3: LAND ASSEMBLY AND EFFECTIVE UTILISATION

Sub-output and

Targets

Progress reported up to September 2011 Planned actions

3.1 Release of land vested nationally or provincially for human settlements development

Release of 6250 hectares of land by 2014

The Department through the Housing Development Agency has identified 17 000 hectares of land to determine suitability for human settlements developmentState land released to municipalities in towns and cities is 1 066 hectares;

The HDA is in process of acquiring 1329 hectares of State Owned Entity land

A manual on release of public and state land for human settlements development is being prepared to improve release from custodian Departments, Provinces and Municipalities.

Land released through the Department of Public Works, Rural Development and Land Reform and Public Enterprises will be developed on the basis of the targeted density in the Delivery Agreement.

The HDA will monitor the application of densities in state land released.

3.2 Promote increased urban densities

Increase densities to on average 60units/hectare

The National Department has developed a draft policy document to provide a National perspective of the built environment, to guide provinces and municipalities in the implementation of increased densities;

The Social and Rental housing programme of the Department develops promotes higher densities.

The Department has recommended the grant frameworks be revised to influence an improvement in densities and project location;

Relevant procedural guidelines will be developed to assist Provinces and Municipalities in the application of improved densities and project location.

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Sub-output and

Targets

Progress reported up to

September 2011

Planned actions

3.3 An approved land use management framework

Approved Land Use Management Act Human Settlements policy regarding LUM

The Department of Rural Development and Land Reform is processing the approval of the “Spatial Planning and Land Use Management Bill (SPLUMB)

The Department of Rural Development and Land Reform is developing guidelines for the development of municipal spatial frameworks in consultation with sector departments, Provinces and Municipalities.

The USDG and HSDG approval framework will be utilized to allow for equitable and improved spatial location of human settlements.

The land financing agreements with sector departments will be finalized.

A policy framework will be finalized on density preconditions for land release.

OUTPUT 3: LAND ASSEMBLY AND EFFECTIVE UTILISATION

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OUTPUT 4: IMPROVED PROPERTY MARKET

Sub-output Targets Progress reported up to September 2011

Planned actions

4.1 Development and implementation of a Mortgage Insurance Guarantee Scheme

Target: Develop and

implement the Mortgage Insurance Guarantee Scheme to contribute 36% (215 000) housing finance opportunities.

Mortgage Default Insurance Scheme was developed by the NHFC and the Department. Consultation has been undertaken with the formal banking sector and NEDLAC.Ministerial approval has been requested from the Minister of Finance for the MDI.Additional approvals are also required from the SARB and the FSB.A Technical Advisor has been appointed to assist in the activation of the MDI in the market.

1. Approval by National Treasury for the Mortgage Default Insurance to be obtained.

2. The drafting of guidelines to govern strategic relations and critical path staff has commenced for the MDI. Additional consultation to be undertaken if required on the MDI.

3. Application for FSB approval and SARB for the MDI.

4. Proposed rationalization of three Human Settlements Development Finance Institutions has been approved by the Department and will serve before Cabinet. The consolidated DFI will implement a new commercial business operating model to widen access to incremental loans.

5. The role of the DFIs in providing support to provinces and municipalities to frame and package projects will be strengthened.

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OUTPUT 4: IMPROVED PROPERTY MARKET

Sub-output and Targets Progress reported up to September

2011

Planned actions

4.2 Revised Finance-Linked Individual Subsidy Programme (FLISP) to responsive to the challenges in the affordable (Gap) market

Revised Finance Linked Individual Subsidy Programme

To deliver a contribution towards the delivery of 600 000 housing finance opportunities.

Revision of FLISP has been completed;Approved by MINMEC and being prepared for inclusion in Housing Code;

Each Province has been requested to identify project(s) where the revised FLISP will be piloted.

Market intervention planned for launch in 2014, and will therefore have minimum impact in the target period – its introduction will be dependant on the success of the Mortgage Default Insurance Scheme

Launch of revised FLISP planned for April 2012

Market intervention for the long term fixed interest rate instrument for mortgages is planned for launch in 2014

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Sub-output and Targets Progress reported up to September 2011 Planned actions4.3 Formulation of a policy position regarding

the introduction of a long term fixed interest rate instrument

Target: Policy position in place by 2014

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4.4 134 841 Mortgage and non mortgage loans delivered to the target market by the DFIs (22% contribution towards the 600 000 housing finance opportunities).

Targets:

• 1929 mortgage loans granted by the NHFC by 2014

• 40 591 incremental loans granted by the NHFC by 2014

• 39 332 housing units contributed by wholesale funding by the NHFC by 2014

• 12 837 housing units leveraged with other funders by the NHFC by 2014

• 40152 Incremental loans granted by the RHLF by 2014

A position paper is currently being drafted for comment and consultation with stakeholders.

Market intervention planned for launch in 2014, and will therefore have minimum impact in the target period – its introduction will be dependant on the success of the Mortgage Default Insurance Scheme

The Rural Housing Loan Fund performance has exceeded the 2014 target having provided 92 612 loans with a value of R243.2m.

The target for RHLF will be revised upwards based on its performance.

National Housing Finance Corporation provided finance to the sector valued at R 1.46 billion, made up of 1 948 mortgage loans, 8 062 incremental housing loans and 16 425 wholesale housing units

The NHFC has concluded an investment agreement with Old Mutual to develop a fund with an initial investment of R900m.

OUTPUT 4: IMPROVED PROPERTY MARKET

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Sub-output and Targets Progress reported up to September 2011 Planned actions

4.5 NURCHA to issue loans to facilitate construction finance within the affordable housing market

Construction finance loans issued for the construction of 6686 affordable housing units

The Department has approved the recapitalisation of the National Urban Reconstruction and Housing Agency (NURCHA) to the value of R300m.

NURCHA has achieved 60% of the 2014 target in the provision of construction development finance to contractors.

A revised Contractor Development Programme has been initiated by NURCHA to ensure incubation and extension of the small and medium construction sector.

OUTPUT 4: IMPROVED PROPERTY MARKET

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Sub-output and

Targets

Progress reported up to

September 2011

Planned actions

4.6 Housing finance opportunities contributed by sector stakeholders

Contribute the remainder (41 %) of the housing finance opportunities to the affordable housing market

Members of the Office of Disclosure have been appointed to oversee the financial sector commitments and performance in the affordable housing market.

The Department is in process of collating data on private sector performance.

1. Additional members for the Office of Disclosure will be appointed by March 2012 to enable the office to be fully functional by April 2012

2. The Home Loans and Mortgage Disclosure Office will be activated to oversee reporting and compliance by the formal banking sector on targets to be set.

3. The role of the DFIs in providing support to provinces and municipalities to frame and package projects will be strengthened.

4. The Department to develop a better understanding of the banks’ performance in the affordable housing market. The Department to develop a structured relationship with the banks.

5. New framework legislation to be crafted, for robust policy instruments defined and directed programme elements negotiated to give greater confidence to the sector to address the target market.

6. The Department in conjunction with DPSA is developing a policy and programme for the provision of access to finance by Public Servants.

OUTPUT 4: IMPROVED PROPERTY MARKET

JOB CREATION

• The delivery of 30,935 completed houses and 10,800 serviced cites from October 2011 to 31 December 2011 has sustained 46,334 employment opportunities.

• The information above is based on employment definition of one person employed for a period of one year.

• The employment opportunities created during the third quarter 2011 is composed of 30,334 direct jobs created during the delivery on the ground, and

• 15,700 indirect jobs created from the suppliers of building material as well as expenditure from income of employees.

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ACCREDITATION OF MUNICIPALITIES

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Achievements

• An overall framework aligning the process to government instruments has been reviewed and developed

• A road map that outlines the key processes that has to be undertaken by the parties has been finalised.

A monitoring and evaluation tool and toolkit has been developed.

ChallengesLegislative review of powers, functions and delegations.Intergovernmental Fiscal and Financial Alignment.Adequate capacity by municipalities with regards to personnel and operational funding.Legal and legislative review of accreditation framework

SANITATION

Jobs Created- A Total of 3,303 jobs created through implementation of RHIP

Cumulatively- Municipalities supported to utilize local labor & SMMEs in construction of

sanitation facilitiesTraining of Youth- Funding of 7.8 million secured with EWSETA to put 65 learners through

leanership programme at NQF Level 2,3,4- 949 Municipal Beneficiaries screened in 5 municipalities - MoU developed, awaiting signing by both DHS & EWSETA to start

implementation- A further proposals have been submitted to DBSA for a job creation fund

to increase number of youth put through leanership programme

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SANITATION

WORLD TOILET DAY

• Western Cape campaign five areas were reached Paarl Knysna, Stellenbosch Phillipi and George

• In each area more than 200 people were reached• In Winterveld about 600 people attended the Provincial event , the areas

covered Ward 19, Ward 09 and 24.• An estimated 1600 people were reached .

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SANITATION

• All Provinces celebrated the Global Hand Wash Day (GHWD) • National Campaigns were held at SABC Offices in Johannesburg, Alexandra

Township and National Department of Human Settlements Walker Street.• The Campaign at SABC Office took place over two days and Alexandra

over three days • According to the AMR (Average Minute Rating , number of people

reached) from SABC reported that 281666 people were reached during the announcement.

• In Alexandra approximately 10 000 people were reached through the free slot radio interview Alex FM on 326 drive show . The show is listened by 6000- 8000 people

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ENTITIES PERFORMANCE

HOUSING DEVELOPMENT AGENCY• 2295.2723 hectares of state and SOE land identified during third quarter• A total of 25662.1623 hectares of state and SOE land identified to compile a

third register of prioritised land for human settlements• 27 pre-acquisition feasibilities and assessments were undertaken during the

third quarter• A total of 113 pre-acquisition feasibility studies conducted so far in KwaZulu-

Natal, Mpumalanga, North West, Gauteng and Limpopo provinces• A formal conditional offer has been presented and conditionally accepted by

Denel for the Swartklip land in Khayelitsha • Two Johannesburg inner city buildings were purchased from Servcon to

support affordable rental housing in accordance with Outcome 8 and the urban renewal initiatives of the City of Johannesburg – these are currently at transfer and registration stages.

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• The HDA has taken transfer of two properties located in Kroonstad and Bethlehem measuring a combined total of 6.9506 hectares and, at the request of the North West Province, is in the process of acquiring a further 295.2602 hectares of land in Ventersdorp

• A further five state-owned unused buildings in Johannesburg and Germiston are being pursued for affordable rental housing development purposes

• 9995.1900 hectares of state land in KwaZulu-Natal, Limpopo and Free State, under the custodianship of the Department of Rural Development and Land Reform, have been formally requested from the Department.

• LaPsis (Land and Property Spatial Information System) enhancements have been effected and a new look and feel with navigation has been implemented

• As per the Implementation Protocol with the North West Department of Human Settlements – R14 million for land acquisition has been transferred to the HDA

• A Limpopo office has been established and staffed

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SOCIAL HOUSING REGISTRATION AUTHORITY

Investments programme and Corporate Services• 12 Projects (7 SHI and 5 private sector applicants) approved for SHIP 2B in the third

quarter;• The SHIP Investment Policies presented to Council and approved;• The National Rental Project Pipeline consolidation process is currently underway for

completion in March 2012. • SHRA website is fully functional. The website is interactive and contains the latest

endorsed information regarding the organization Regulations

• Successful Workshops were conducted on the Companies Act, King III and Legal Compliance with SHI’s;

• The Draft Regulations to the Social Housing Act 16 of 2008 were adopted by the Portfolio Committee and have since been signed by the Minister;

• SHI reporting has improved since the last reporting cycle; and• There were six more SHI’s fully accredited as at the end of the 3rd quarter.

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NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY

LENDING PROGRAMMES

LOANS SIGNED VALUE OF LOANS

Target Actual Target Actual

Subsidy Housing 21 24 75.7 112.3

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• The above figures are cumulative since beginning of the financial year and the lending programme is well on the way to meet the annual targets despite starting the year with a negative sentiment and imposing restrictive conditions to curb defaults.

• Affordable housing has signed two large projects that fall squarely in the gaps housing market price (R380K and below). Together they make up 1800 units.

• Leveraged funding of R 100 m from two new financing partners Cadiz Asset Managers and PIC,

• Rolling out the new Contractor Finance and Development Programme to provinces in close collaboration with the National Department of HS and NHBRC. Department will support the programme with a R172m grant over the next three years to mentor and support contractor into successful entrepreneurs.

• Initiated implementation of the programme management support services (new business stream) in support of selected provinces and sister DFIs as envisaged in our 2011/12 business plan.

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RURAL HOUSING LOAN FUND

Development impact Performance

• Number of loans disbursed was 14 973, exceeding quarter target of 9 475 by 5 498• 88.3% of the loans were taken for a housing related purpose, exceeding the target of

80%• 85.3% of the loans went to non-metropolitan areas, which was higher than the set

target of 80%• Maintained national footprint since RHLF made loans in all 9 Provinces, with end user

loans to poor provinces i.e. Eastern Cape, Limpopo & Mpumalanga increased by 54% during the quarter.

• 56% of the loans were accessed by women• 51% of the loans went to borrowers earning R3 500 and less—an achievement under

such tough market conditions. However, this was below the set target of 60%. • 66% of the loans went to borrowers earning R6, 000 and less.• Cash disbursements amounted to R41m, which was higher than the target of R30m for

the period

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• Total disbursements including mezzanine funding (subordinated loans) amounted to R90.5m—higher than the target of R46m.

• Average loan size achieved was R6 044, against a target of R4 855

Financial Performance

• Income increased by 4% from previous Quarter and was slightly above the budget• Operating costs were 8% below the budget—operating expense ratio achieved

was 25% against a target of 37%• Operating Surplus Before Taxation was at R3.2m against a target of R1.1m • Value of loans in place was achieved was R322.9 m and exceeded the budgeted

amount of R320.1m by R2.1m• Percentage impairment provision achieved was 12.1% versus a budgeted 19.5%--a

positive variance of 7.4%

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NATIONAL HOME BUILDERS REGISTRATION COUNCIL

Non Subsidy Sector• Registrations - 609 new registrations compared to target of 767. Target missed

by 21%.• Renewals of resignations - 2, 515 renewals compared to target of 9, 620.

Target missed by 9%.• Enrolment of houses - 10, 165 enrolments compared to target of 9, 620.

Target exceeded by 5%.• Late enrolment of houses - The target is 414 for late enrolments and the

performance was 337. Target was therefore achieved by 41%.• Complaints - Out of 171 complaints received 85 were closed.• Inspections - The target for inspection was 56120 and 83664 inspections were

conducted. The target was therefore achieved by 49%.

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Subsidy Sector• NHBRC is still facing challenges with a number of Provincial Departments

of Human Settlements in terms of ensuring that all projects are enrolled timeously.

• For the third quarter of 2011/12 financial year, a total of one hundred and seventy (170) projects were captured with a total of 104 projects approved. The most projects approved were from Limpopo with 64 projects approved and the least projects received from Free State and Mpumalanga province.

• During the third quarter of the 2011/12 financial year, two hundred and thirteen (213) projects were captured for home enrolment, a total of twenty six thousand and hundred and forty (26, 140) units were approved by NHBRC. The highest numbers of projects were captured in Limpopo province. Nothing was received from Free State, Mpumalanga, Northern Cape and Western Cape Province.

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NATIONAL HOUSING FINANCE CORPORATION

• The disbursements in the year to date achieved 65% of the target. In line with the NHFC mandate of crowding-in the private sector, the Corporation was able to leverage R969 million which contributed to the achievement of the overall funding impact of 92% of the year to date budget.

• Commercial banks are reportedly focusing more on the unsecured lending business that is proving to be more profitable as financial institutions are pricing higher for the inherent risk that is in the nature of business. This is also reflected in the performance of the incremental business compared to home ownership which is lagging.

• The leveraging initiatives and partnerships with the private sector also contribute to the housing opportunities achieving 79% of the year to date target as well as the jobs created exceeding the target.

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• In particular, in terms of the proposed recapitalisation of TUHF, the NHFC equity stake has been able to leverage R75 million worth of “B” shareholder funds as well as debt funding totalling R650 million. Therefore bodes well for inner city development, and by implication, contribute to Outcome 8’s Accelerated Delivery of Housing Opportunities Output, through delivery of private rental housing in the Inner City.

• During the last quarter, efforts to convert the approvals into

disbursements are being intensified with a view of achieving the annual targets.

• Profits after tax for the period was R41 million against a budget of R17 million mainly due to reversal of impairments following recoveries in respect of settlement agreement, and savings in operating expenses.

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Mortgage Default Insurance• The build-up of the Mortgage Default Insurance product is continuing in line with

the recovery plan. The concurrence from National Treasury on the R1 billion guarantee and capitalisation of the company by R150 million however remains outstanding.

Risk Appetite Statement• The Board approved the risk appetite statement for the Corporation. A

comprehensive risk appetite framework has been defined to assist the Corporation in better understanding and managing its identified risks.

Funding Plan• Following the approval of the Strategic Plan for the planning period 2013-2017, a

Funding Plan was prepared to provide a framework for the mobilisation of funding to support the Strategic Plan.

• The funding plan, approved by the Board, provides for the approval of borrowings as well as a request for recapitalisation of the Corporation. A proposal is being prepared in this regard seeking approval from the National Department of Human Settlements and National Treasury.

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FINANCIAL REPORT

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INITIAL ALLOCATION PER PROGRAMME

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Rand thousand

Revised estimate

Medium term estimates

2010/11 2011/12 2012/13 2013/14

Administration 211,997 232,435 238,380 252,392

Housing Policy, Research and Monitoring

47,686 39,215 46,633 44,035

Housing Planning and Delivery Support

225,221 156,163 178,520 223,773

Housing Development Finance 18,663,357 21,995,147 24,253,309 25,947,289

Strategic Relations and Governance 157,660 155,535 158,215 207,250

Total 19,305,921 22,578,495 24,875,057 26,674,739

ROLLOVERS APPROVED FROM 2010/11 TO 2011/12

• National Treasury has granted approval of only R64,5 million of the R101,1 million requested

• This amount comprises of:– R31,1 million for the Accelerated Community Infrastructure

Programme (ACIP);– R26 million for the Rural Household Infrastructure Grant (RHIP);– R3,1 million for the Turnaround strategy development for the

Department; and– R4,3 million for SITA infrastructure services.

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ADDITIONAL FUNDS APPROVED 2011/12 ADJUSTMENT ESTIMATE

• National Treasury has provided the Department with R180 million for disaster relief.– The funds are allocated to the Housing Disaster Relief Grant in

Programme 4: Housing Development Finance.• National Treasury also approved R2,4 million for higher salaries adjustments.

– The funds are allocated to: • Prog 1 – R676 000• Prog 2 – R227 000• Prog 3 – R713 000• Prog 4 – R344 000• Prog 5 – R447 000

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CHANGES WITHIN THE BUDGET

(APPROVED VIREMENT)

• An amount of R8.5 million has been identified from savings to fund NUSP.• The R8.5 million consists of the following:

– R1.5 million from Human Settlement Planning (P3);– R4 million from Financial Services(from P4 to P3);– R1 million from Intergovernmental Relations and International

Relations(from P5 to P3);– R2 million from Management Information Services(from P5 to P3).

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2011/12 FINAL ADJUSTED ALLOCATION

Programmes Original Allocation Roll Overs Additional

fundsShifts/

VirementsTotal

Adjustments Final Allocation

1. Administration 232,435,000 676,000 676,000 233,111,000

2. Housing Policy, Research and Monitoring 39,215,000 227,000 227,000 39,442,000

3. Housing Planning and Delivery Support 156,163,000 31,135,000 713,000 7,000,000 38,848,000 195,011,000

4. Housing Development Finance 21,995,147,000 26,008,000 180,344,000 -4,000,000 202,352,000 22,197,499,000

5. Strategic Relations and Governance 155,535,000 7,496,000 447,000 -3,000,000 4,943,000 160,478,000

Total 22,578,495,000 64,639,000 182,407,000 0 247,046,000 22,825,541,000

EXPENDITURE PER PROGRAMME AS AT 31 DECEMBER 2012

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ProgrammesAdjusted

Allocation1

Commitments2

Expenditure3

Variance= 1 - 3

% Spent

1. Administration 233,111,000 6,104,762 96,986,788 136,124,212 42%

2. Housing Policy, Research and Monitoring 39,442,000 2,117,199 24,681,630 14,760,370 63%

3. Housing Planning and Delivery Support 195,011,000 6,332,102 119,614,240 75,396,760 61%

4. Housing Development Finance 22,197,499,000 165,787,103 16,791,970,565 5,405,528,435 76%

5. Strategic Relations and Governance 160,478,000 29,227,564 78,144,931 82,333,069 49%

Total 22,825,541,000 209,568,730 17,111,398,154 5,714,142,846 76%

EXPENDITURE PER ECONOMIC CLASSIFICATION AS AT 31 DECEMBER 2012

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Economic Classification Adjusted Allocation Commitments Expenditure Variance % Spent

Compensation of employees 289,743,000 0 182,566,877 107,176,123 63%

Goods and services 357,930,782 42,726,696 155,739,266 202,191,516 44%

Comprises of:

Administrative Fees 867,500 135,847 257,181 610,319 30%

Advertising 15,200,062 1,869,747 5,040,745 10,159,317 33%

Assets less R5 000 4,886,120 562,541 1,253,445 3,632,675 26%

Audit cost: External 6,939,000 0 4,009,790 2,929,210 58%

Bursaries (employees) 1,023,500 2,990 496,589 526,911 49%

Catering: Departmental activities 4,305,500 209,050 2,598,573 1,706,927 60%

Communication 11,832,876 883,825 5,978,411 5,854,465 51%

Computer services 56,228,416 24,571,837 15,374,996 40,853,420 27%Consultants and professional service: Business and advisory service 130,475,300 9,757,988 43,229,071 87,246,229 33%

Consultants and professional service: Legal cost 2,389,000 156,345 2,119,109 269,891 89%

Contractors 3,350,068 221,214 1,868,888 1,481,180 56%

Agency and support / outsourced services 2,175,000 181,779 723,391 1,451,609 33%

Entertainment 772,082 0 172,978 599,104 22%

EXPENDITURE PER ECONOMIC CLASSIFICATION CONT.

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Economic Classification Adjusted Allocation Commitments Expenditure Variance % Spent

Fleet Services 153,000 0 32,985 120,015 22%Inventory 8,069,817 905,426 3,376,109 4,693,708 42%Lease payments 35,282,000 1,313,694 9,100,106 26,181,894 26%Property payments 2,424,000 122,552 1,348,521 1,075,480 56%Travel and subsistence 49,762,099 92,202 42,597,898 7,164,201 86%Training and development 4,680,582 827,930 4,097,323 583,259 88%Operating expenditure 5,295,938 828,312 1,659,707 3,636,231 31%Venues and facilities 11,818,922 83,415 10,403,452 1,415,470 88%Interest Paid Financial Leases 656,000 176,991 149,076 506,924 23%Payments For Financial Assets 15,000 0 8,782 6,218 59%Transfers and Subsidies 21,881,277,000 0 16,712,237,681 5,169,039,319 76%Provincial and Local Governments 21,388,514,000 0 16,276,729,000 5,111,785,000 76%Departmental Agencies & Accounts 487,092,000 0 430,690,000 56,402,000 88%Foreign Gov & International Organ 1,000,000 0 77,525 922,475 8%Public Corporation & Private Enterprise 0 0 0 0 0%Households 4,671,000 0 4,741,156 -70,156 102%Payment for Capital Assets 295,919,218 166,665,044 60,696,472 235,222,746 21%Building & Other Fix Structure 288,643,000 165,037,517 59,330,317 229,312,683 21%Machinery and equipment 7,041,218 1,627,528 1,366,155 5,675,063 19%Software & Intangible Assets 235,000 0 0 235,000 0%Total 22,825,541,000 209,568,730 17,111,398,154 5,714,142,846 75%

DETAIL OF TRANSFER PAYMENTS AS AT 31 DECEMBER 2012

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Transfer Payments Adjusted Allocation Expenditure Variance % Spent

Human Settlements Development Grant 14,941,516,000 12,098,737,000 2,842,779,000 81%

Rural Households Infrastructure Development 257,508,000 51,419,115 206,088,885 20%

Urban Settlements Development Grant 6,266,998,000 4,177,992,000 2,089,006,000 67%

Housing Disaster Relief Grant 180,000,000 - 180,000,000 0%

Social Housing Regulatory Authority: Operational 19,305,000 19,305,000 0 100%

Rural Housing Loan Fund 49,500,000 49,500,000 0 100%

Housing Development Agency 89,100,000 80,190,000 8,910,000 90%

National Urban Reconstruction and Housing Agency 100,000,000 100,000,000 0 100%

Social Housing Foundation 3,018,000 - 3,018,000 0%

Social Housing Regulatory Authority: Capital Restructuring Grant 226,169,000 181,695,000 44,474,000 80%

Total 22,133,114,000 16,758,838,115 5,374,275,885 76%

PROVINCIAL SPENDING PERFORMANCE EXPENDITURE AS AT 31 DECEMBER 2012

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Provinces

Total Available

Year to date (1 April 2011 - 31 December 2012)

Transferred Funds

Spent by Provinces

Variance Spent vs Transfer-

red

Variance Spent vs

Total Available

Transfer-red as % of voted

funds

Spent as % of Total Available

Spent as % of

Transfer-red Funds

Unspent as % of

Transfer-red

Funds

Unspent as % of Total

Available R'000 R'000 R'000 R'000 R'000

Eastern Cape 2,177,676 1,601,805 1,360,712 241,093 816,964 74% 62% 85% 15% 38%

Free State 913,907 913,907 904,879 9,028 9,028 100% 99% 99% 1% 1%

Gauteng 3,804,611 3,060,306 2,254,612 805,694 1,549,999 80% 59% 74% 26% 41%

KwaZulu-Natal 2,769,871 2,165,304 1,961,150 204,154 808,721 78% 71% 91% 9% 29%

Limpopo 1,398,914 1,189,588 827,693 361,895 571,221 85% 59% 70% 30% 41%

Mpumalanga 916,677 775,575 678,321 97,254 238,356 85% 74% 87% 13% 26%

Northern Cape 322,639 271,825 268,042 3,783 54,597 84% 83% 99% 1% 17%

North West 998,376 870,248 828,267 41,981 170,109 87% 83% 95% 5% 17%

Western Cape 1,638,845 1,250,179 1,168,121 82,058 470,724 76% 71% 93% 7% 29%

Total 14,941,516 12,098,737 10,251,797 1,846,940 4,689,719 81% 69% 85% 15% 31%

DELIVERY AS 31 DECEMBER 2011

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Province

Annual Delivery Targets Delivery Performance as at 31 Dec 2011

Variance Delivery

Sites

Variance Delivery

Top Structure

Total Variance DeliverySites

(Units)

Top Structure

(units)

Total Delivery Targets

Sites Top Structure

Total Delivery perfor-mance

Eastern Cape 15,660 15,419 31,079 4,034 8,677 12,711 (11,626) (6,742) (18,368)

Free State 7,680 7,526 15,206 1,075 7,774 8,849 (6,605) 248 (6,357)

Gauteng 15,606 34,294 49,900 8,043 16,057 24,100 (7,563) (18,237) (25,800)

KwaZulu-Natal 8,860 25,587 34,447 4,815 15,624 20,439 (4,045) (9,963) (14,008)

Limpopo 3,000 13,410 16,410 1,660 10,325 11,985 (1,340) (3,085) (4,425)

Mpumalanga 8,235 10,394 18,629 0 4,559 4,559 (8,235) (5,835) (14,070)

Northern Cape 1530 3,480 5,010 1,292 2,665 3,957 (238) (815) (1,053)

North West 4,529 13,861 18,390 7,420 14,236 21,656 2,891 375 3,266

Western Cape 13,085 12,640 25,725 5,022 8,524 13,546 (8,063) (4,116) (12,179)

Total 78,185 136,611 214,796 33,361 88,441 121,802 (44,824) (48,170) (92,994)

THANK YOU

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