PUBLIC HEARING ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE 24 JANUARY 2008

Table of Content The outcomes of the audited report of 2006/07 and the department’s plans to address any shortcomings, Data on trends in allocations, transfers and actual expenditure of conditional grants and capital expenditure of the department. Brief assessment of the department’s monitoring capacity for the financial year 2007\2008, Spending / overspending and capacity constraints that impacted on these events. Monthly reports received from receiving departments or municipalities.

OUTCOME OF EXPENDITURE PERFORMANCE: ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE (2006/07) GrantAllocationTransferExpenditure% Deviation Integrated Housing and Human Settlement Development Grant 1,759,874 1,759,8220% Land Distribution: Alexandra 8,000 0% Total1,767,874 1,767,8220%

Auditor General’s Report Vote –Unqualified Audit Opinion –Emphasis of matter Restatement of 2005/2006 comparative Auditing of assets Housing Fund –Qualified Audit Opinion Verification of validity & accuracy of value of properties Devolved properties Differences between BAS and Debtors System Accuracy of property register

Action Plan to address - Auditor General’s Report Engagements with National Treasury – AFS Preparation template and guidelines Engagements with National Housing – Property related differences Appointment of service providers to address challenges raised by the Auditor-General

ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE (2006/07) The Department receives conditional grants from National Department for its Housing Fund and Human Settlement programmes. Transfers to the Department’s bank account for the period under review were done on schedule and in line with the provisions of the grant. No payments were delayed or withheld by the transferring Department; all monies due to the Gauteng Department of Housing were transferred. The Department did not incur any administration costs usually associated with retention of grants by the transferring Department because we complied with the provisions of the Conditional Grant as well as sections 21 and 22 of the Divisions of Revenue Act. The Department successfully spent 100% of it’s allocated Conditional Grant allocation. This was achieved by the continuous monitoring of expenditure against projections and actual delivery against planned delivery.

ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE (2007/08 YTD) PeriodAllocationTransferExpenditure% Deviation (Over)/Under 1 st Quarter330, ,533-17% 2 nd Quarter633, ,07028% 3 rd Quarter604, ,116-29% Total1,567,999 1,623,719-4%

8 PROGRAMME SUMMARY REPORT:2007/2008 FY ProgrammeSub-ProgrammeAnnual TargetTotal sites servicedTotal Houses Completed Mixed Housing Development Stands Houses Eradication of Informal Settlement Stands Houses Alternative TenureHouses Other: Housing Assets Management Houses Total Grand Total57110

REASONS FOR OVER EXPENDITURE The obligation by the Department was to reach a 75% spending margin by 31December 2007, irrespective of the marginal under-spending during the period April to November 2007 in comparison with the draw downs received in terms of the approved DORA payment schedule Good co-operation has been made by the contractors and service providers of the Department to compile and submit claims for all progress to date executed to the satisfaction of the department shortly after commencement of the builders holidays. This therefore gave rise to an acceptably high turn over of payments being generated as per their contract agreement. Successful processing by the Department of all such claims received for payment before the end of December 2007 To expedite with effect from end November 2007 the remedial work in terms of the rectification and regularization programmes of which caused an expenditure higher than the funding initially provided therefore based on the fast tracking of actual delivery achieved on the said programme.

MONITORING CAPACITY  The Department monitors expenditure against projections on a monthly basis to ensure that the projections and targets set by the Department are adhered to.  The Payment process – flow chart has been drawn and this has reduced considerably amount of time before payment is done to service providers. The Executive Committee of the Department under the HOD leadership meets every week to assess delivery and spending patterns.  Any major deviations from projections and delivery targets are investigated and corrective action taken and preventative measures instituted.  The Department has adequate capacity to monitor all project development that is underway in the Province.  The Department has set up institutional arrangements at Political as well as administrative level with municipalities in order to monitor housing delivery in the province.  We have established Community Based Communication plan in order to interact with public elected representatives and structures at ward level in order to assist with implementation as well as monitoring housing development in each area.  The Department also accounts to the Portfolio Committee on Housing about our performance and expenditure trends.  Performance audit are being conducted by the Gauteng Audit Services to determine impact as well as adherence to policy and various regulations regarding housing development process.  The GDoH has continued with the use of appointed Professional Resource Teams made up of Engineers, Quantity Surveys, Architects, Project / Construction Managers as a means of assisting the Department in executing it’s mandate of monitoring and controlling housing delivery in the Province.

MONITORING CAPACITY (Cont) Departments submits various reports as prescribed by the PMFA to various institutions such as Provincial Treasury and Legislature. A Monitoring and Evaluation Unit has been established to evaluate progress in the implementation of the strategy against the targets set- out including financial management. Capacity within the Department is being addressed and improvement of our internal systems is starting to yield results and contributing towards the realization of the GPG priorities. The Office of the Chief Financial Officer (CFO) has been capacitated with staff in order to monitor and deal with all finance related matters of the Department.

MONTHLY REPORTS FROM RECEIVING DEPARTMENTS OR MUNICIPALITIES The Department does not make any transfers to any departments or municipalities.

CONCLUSION The objectives and targets illustrated in the Departmental Performance Plan 2007/08 are geared to contribute towards GPG strategic objectives to Fight Poverty and Create Jobs and to grow Gauteng’s economy. The Department has set these targets with a vision to make Gauteng a place where all households inhabit quality homes in vibrant and sustainable communities. The Department is continuously recruiting and employing capable staff with the ability to provide appropriate quality services, tenure, housing in targeted precincts and communities and with the ability to work in partnership with stakeholders. The Department is continuously engaging the Private Sector in order to deliver at scale – through the intended PPP approach. Involvement of communities and other civil society organizations in development issues. There’s a need for ongoing integration of plans and funding for Human Settlements in all spheres of government and private sector Instituted better coordination and integration of planning process and implementation between province and municipalities to realize our key priorities

THANK YOU