PUBLIC HEARING ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE

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PUBLIC HEARING ON CONDITIONAL GRANTS AND CAPITAL
EXPENDITURE
24 JANUARY 2008
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Table of Content

• The outcomes of the audited report of 2006/07 and
  the departments 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 departments 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.

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OUTCOME OF EXPENDITURE PERFORMANCE ALLOCATIONS,
TRANSFERS AND ACTUAL EXPENDITURE (2006/07)
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Auditor Generals 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

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Action Plan to address -Auditor Generals 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

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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 Departments 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 its allocated
Conditional Grant allocation. This was achieved
by the continuous monitoring of expenditure
against projections and actual delivery against
planned delivery.
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ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE
(2007/08 YTD)
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PROGRAMME SUMMARY REPORT2007/2008 FY

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• 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
• 2008.
• 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.

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• 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 its mandate of
  monitoring and controlling housing delivery in
  the Province.

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• 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 .

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

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• 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
  Gautengs 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.
• Theres 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

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THANK YOU