1. Departmental Quarterly Performance Report April – June 2017 Mr. M
Departmental Quarterly Performance Report April – June Mr. M. Tshangana

2. Overview Departmental performance on operational targets
Progress on Policy, Planning and IGR targets and outputs
Processing of Human Settlements Legislation
Progress on Transformation Targets
Progress on Human Settlements Development Bank establishment
Progress on Military Veterans Programme
Progress APP targets in line with the MTSF
Financial information

3. Administration – Operational Targets
Statutory requirements relating to the preparation of annual financial statements and performance information for the annual report completed.
Deadlines relating to disclosure by SMS members were monitored and complied with
Progress has been made to address IT governance audit queries and impact -being realised
Progress has been made in reducing the vacancy rate and middle management postions have been filled ,SMS vacancies prioritised for filling
Performance management system -put in place to ensure that all SMS members submit agreements on time
Internal controls improved to ensure that payable and valid invoices are paid within 30 days

4. Progress on Policy, Planning and IGR Targets
The department facilitated alignment of Provincial -Municipal Development Plans for the HSDG and USDG with MTSF priorities and outcomes
Coordination with sector departments contributing to Human Settlements development has been strengthened with IGR contracting for better outcomes
A research agenda to support policy development was developed
A framework for reviewing programmes in the Code is in place
Municipalities' state of readiness to deliver was assessed in 4 municipalities in Limpopo Province

5. Processing of Human Settlements Legislation
The Property Practitioners Bill and the HLAMDA Amendment Bill was gazetted for public comment in the Government Gazette on 31 March 2017 under Notice No. 247 of 2017 for a period of 30 calendar days.
During this process the department received written submissions from the public and interested parties.
Thereafter, information Sessions were held from 20 June 2017 to 06 July in all nine (9) provinces with the aim of enriching and allowing for clarity in the public comment process.
The department has incorporated the relevant and applicable comments into the Bills, and the process to have Cabinet approval and endorsement for the revised Bills to be introduced into Parliament has commenced.

6. Transformation Targets
youth, women, government officials and consumers in the subsidy and gap market, trained on human settlements skills development programmes.
9 Provinces and 9 Municipalities supported in the implementation of Capacity Development Programmes
335 University and TVET College students supported on various programmes including the artisan programme

7. Human Settlements Development Bank Establishment
A business case was prepared in accordance with the Draft Interim Guide for establishing Public Entities at the National Sphere of Government

8. Military Veterans EC FS GP KZN LIM MP NC NW WC TOTAL 88 230 219 34 199
Province
Approved 2017/18 Delivery Projections
Provincial Distribution 1421
No. of approved beneficiaries to date
Quarterly Performance for 2017/2018 Q1 Q2 Q3 Q4 EC 88
230
219 34 FS
199 78 56 GP
490
364
118 09
KZN 68
393
244
LIM
100
171
411 MP 73 12
102 NC 50 24 38 NW
119 70 75 WC
250 79
113
TOTAL
1437
1 421
1376
111

9. Challenges Regarding The Military Veterans Programme
During this quarter, there was no activity in 5 Provinces:
Free State
Kwa-Zulu Natal
Limpopo
Northern Cape, and
North West Province
There is slow or lack of uptake on the BNG option by SAMVA
Delays in contractor appointment
Lack of uniformity in the implementation of the project - Free State 100m² and Limpopo 75m²
Provinces not applying authorized over-rides to fast -track allocation
Beneficiaries not opting for BNG units in current running projects
Some provinces have not established Provincial Steering Committees.

10. Proposed Corrective Measures – Military Veterans
Post the Ministerial Dialog with Military Veterans on the 03 May 2017, the Department held a meeting with leadership of MKMVA with a view to present the strategy of delivery for support.
Settlement of MV’s bonds within and below R , and other cases to be dealt with separately are being fast-tracked - Seventy (70) has been settled by DMV.
The beneficiation of Military Veterans owned companies registered with Provincial SCM’s be allocated at least the minimum of 30% in line with the Treasury Regulations on Military Veterans.
Establishment of Service Centres in the Provinces, especially in those Provinces where there are no Call Centres to deal with MV issues.
All approved human settlements projects implemented in Provinces will have 10% Military Veterans houses.
Encourage all Provinces to adhere to the approved 50m2 regulated building structure for consistency and uniformity of delivery.

11. Proposed Corrective Measures – Military Veterans
Minister has established a National Task Team (6 members) to assist with implementation of the programme
Military Veterans to build own houses through the People’s Housing Process (PHP) where so organised.
Department in the process of aappointing an IT company to assist the Department with the enrolment and verification of Military Veterans.
Implementation of the circular on overrides has bebeen signed off and approved by the Director General and forwarded to Provinces.

12. MTSF Based Delivery Targets
47 catalytic projects approved for implementation
Mining towns provided with human settlements intervention support that include, formalization and full services, interim basic services.
Approximately R899,800 million has been ring-fenced for informal settlements upgrading and human settlements delivery in mining towns.
For the period ending June 2017 a total number of 1594 sites and 579 units have been delivered

13. APP Targets Relating to MTSF and Progress
Annual Target 2017/18
Quarterly Target
Actual Performance Q1
300 Informal settlement upgrading plans developed
75 Informal settlement upgrading plans developed
87 Informal Settlement Upgrading Plans developed
households in informal settlements upgraded
households
5 747 households (HSDG)
(USDG)
=25 130
individual units for subsidy housing submarket provided
individual units
Units
7 920 private affordable rental opportunities
1 230 private affordable rental opportunities
895 Private Rental Opportunities
6 000 of Social Housing units delivered
1 000 of Social Housing units
451 Social Housing Units
1 915 Community Residential Units (CRU) delivered
315 Community Residential Units
156 CRU Units

14. APP Targets Relating To MTSF And Progress
Annual Target 2017/18
Quarterly target
Actual Performance Q1
pre-and post-1994 title deeds issued
49 095
10 451
title deeds for new subsidy houses issued
23 300
4 896

15. Progress on Delivery - MTSF (4 months delivery = 20 337 Houses)
2017/18
4 month Target:
(4 months delivery = Houses)
Note: 2017/18 delivery figures are up to end July 2017 and are preliminary.

16. Delivery Q1 - 3 Months (April – June 2017)
Note: 2017/18 delivery figures are up to end June 2017 and are preliminary.

17. Delivery Q1: 3 Months (April – June 2017)
Note: 2017/18 delivery figures are up to end June 2017 and are preliminary.

18. Delivery Q1 – 3 Month Progress On Estimated Targets and Balance To Year End
Note: 2017/18 delivery figures are up to end June 2017 and are preliminary.

19. Audit Plan – HSS Data as at 19 July 2017
The figures up to June 2017 (3 months) are 99.58% aligned with what is captured on the HSS by the Provincial Depts
Net Capture:
Sites: 98.19%
Houses: %
Overall: 99.58% ( sites + houses captured)

20. AUDITOR-GENERAL CONCERNS REGARDING HSS DATA: (HSS data as at 19 July 2017) …continues
The figures up to June 2017 (3 months) are 99.58% aligned with what is captured on the HSS by the Provincial Depts
Net Capture:
Sites: 98.19%
Houses: %
Overall: 99.58% ( sites + houses captured)

21. Departmental Expenditure 1st Quarter Of 2017/18

22. Expenditure by Programme: 30 June 2017
Total Allocation
R' 000
Commitments
Expenditure
Variance
% Spent
1. Administration
29 791
95 629
21%
2. Human Settlements Policy, Strategy and Planning
93 573
916
16 715
76 858
18%
3. Programme Delivery Support
15 225
30 388
14%
4. Housing Development Finance
158
Total
46 090

23. Operational Expenditure by Programme: 30 June 2017
Total Allocation
R' 000
Commitments
Expenditure
Variance
% Spent
1. Administration
29 791
95 535
21%
2. Human Settlements Policy, Strategy and Planning
90 773
916
16 644
74 129
18%
3. Programme Delivery Support
15 225
29 913
14%
4. Housing Development Finance
27 139
158
5 145
21 994
19%
Total
46 090

24. Transfer Payments: 30 June 2017
Total Allocation
Expenditure
Variance
% Spent
Grants
14%
Human Settlements Development Grant
21%
Urban Settlements Development Grant - 0%
Entities
22%
Social Housing Regulatory Authority: Operational
46 815
100%
Social Housing Regulatory Authority: Institutional Investment
20 490
Social Housing Regulatory Authority: Restructuring Capital Grant
Social Housing Regulatory Authority: Regulations
8 000
Community Schemes Ombud Services
29 400
23 300
6 100
79%
Housing Development Agency
50%
Departmental Transfers
12 668
639
12 029 1%
Bursaries Scheme
9 822
475
9 347 5%
UN Habitat
1 300
Households 46
164
(118)
358%
CSIR
1 500
Payments for financial assets
National Housing Finance Corporation
Rural Housing Loan Fund
50 000
Total

25. Human Settlements Development Grant Expenditure (HSDG) Performance as at 30 June 2017
Provinces
Voted Funds to Provinces
Year to date (1 April June 2017)
Transferred from Voted Funds
Spent by Provinces
Unspent against Transferred Funds
Unspent against Total available
% Transferred against Total Available
% Spent against Total Available
% Spent against Transferred Funds
% Unspent against Transferred Funds
R'000
Eastern Cape - 31
100
Free State 30 22 72 28
Gauteng 17 9 54 46
KwaZulu-Natal 19
117
-17
Limpopo 24 14 58 42
Mpumalanga
4 272 98 2
Northern Cape
44 612
63 333 11 16
142
-42
North West 25 15 61 39
Western Cape 20 10 50
Total 21 77 23

26. USDG PERFORMANCE – EXPENDITURE AS AT 30 JUNE 2017
USDG EXPENDITURE FIGURES (01 JULY 2016 – 30 JUNE 2017)
Municipality
Voted Funds 1
Rollover from /16 2
Total Available Funds
3=(1+2)
Transfer from Voted funds 4
Spent by Municipality
% Spent
6=(5÷3)
Unspent Funds
7=(3-5)
% Unspent
8=(6÷3)
R'000
Buffalo City -
100
Nelson Mandela Bay
Mangaung
58 644
90.0
78 571
10.0
Ekurhuleni
89.9
10.1
City of Johannesburg
94 984
79.3
20.7
City of Tshwane
95.0
77 502
5.0
eThekwini
City of Cape Town
89.8
10.2
Total 92
8.0
* Preliminary expenditure – Expenditure report submitted on 30 July Metro are reporting on an accrual basis of accounting thus final expenditure to be submitted 31 August 2017 once all invoices are processed.

27. Concluding Remarks
The Provinces and Municipalities continue to underperform in all programmes under the MTSF upgrading of informal settlements
The department has proposed an amended grant framework to ensure that 50 percent of the USDG is spent on informal settlements, and Municipalities continue to obsfucate the concrete amounts allocated to poor households.
In order to address the underperformance of the Provinces and Municipalities in relation to the Title Deeds, the Department has proposed a revision of the grant structure to allow for National leverage to influence performance.
Furthermore the Department has also proposed the ring-fencing of allocations for the Catalytic Projects, FLiSP and re-financing of the Human Settlements Development Bank.

28. Concluding Remarks
The Department has prepared and presented to MinMec a set of recommendations to allow for reallocations to improve the performance targets and outputs of both the HSDG and USDG.
The Department has proposed that recovery plans for Limpopo, Gauteng, North-West and the Free State be prepared for consideration by the Director-General and this includes possible reallocations.

29. Thank You