PRESENTATION ON ASSET REGISTER ENHANCEMENT PROJECT PROGRESS

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PRESENTATION ON ASSET REGISTER ENHANCEMENT
PROJECT PROGRESS

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CONTENTS

• Purpose
• Background
• Progress
• Key focus areas
• Challenges
• Way forward

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PURPOSE

• The purpose of the presentation is--
• (a) To provide overall progress in respect of the
  Asset Register Enhancement Programme as well as
  highlight key areas that affect the overall
  performance thereof.

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BACKGROUND

• Governments desire to manage its immovable
  assets effectively and efficiently necessitates
  an accurate and comprehensive Asset Register.
• The register is of strategic importance in the
  States drive to obtain the best functional,
  social and financial returns from its property
  portfolio and it underpins both the Devolution of
  budgets to Client Departments as well as the
  successful implementation of GIAMA
• Asset Management depends on accurate and reliable
  information in an asset register.

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BACKGROUND (Continued)

• Challenges such as client departments not
  advising the department when they vacate
  properties impact on the reliability of the asset
  register.
• In view of hereof, amongst others, the
  department has recognized the need to upgrade and
  enhance the immovable asset register and to this
  end has initiated the Asset Register Enhancement
  Programme.

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BACKGROUND (Continued)

• The Enhancement Program focuses on the following
  --
• Verifying and capturing floor area extents of
  immovable assets not previously populated
• Enhancing existing information with the required
  details to facilitate effective asset and
  property management ( Rental Charges)
• Comply with the Auditor General and Accountant
  General minimum requirements for essential fields
  in the asset register.

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PROGRESS

• Regions actively collected and captured data with
  excellent progress made to date.
• Investigations to populate floor area extents per
  phase 1 of the project revealed numerous
  discrepancies which is also researched and
  corrected by Regions.
• Outstanding units to be measured has decreased
  significantly although discrepancies has remained
  high.
• Regions also measured additional facilities not
  originally included in the scope of work
  increasing the overall progress percentage.

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PROGRESS (Continue)
Region No of Units to be measured Actual number of Units measured to date Discrepancies identified
Eastern Cape (PE) 623 614 8
Free State 2,190 1642 576
Gauteng (Jhb) 5,711 3672 1641
Gauteng (Pta) 6,926 6063 0
KwaZulu-Natal 3,936 (3,907) 3812 837
Limpopo 4,541 4329 549
Mpumalanga 1,832 2590 619
North West 2,627 1718 1135
Northern Cape 2,289 2091 212
Umtata 490 (519) 406 99
Western Cape 2,390 2195 211
TOTAL 33,555 29,132 5,887
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PROGRESS (Continue)
Region Number of Units outstanding
KwaZulu-Natal 19
Limpopo 23
Mpumalanga 336
Western Cape 338
Gauteng (Johannesburg) 555
Gauteng (Pretoria) 1370
Total 2,641 (7, 87)
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PROGRESS (Continue)
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KEY FOCUS AREAS

• Measuring of floor areas (m²) PHASE 1
• In view of the devolution of budgets and
  calculation of a fair value of our immovable
  assets, it has become critical for this
  Department to have the correct floor area (m²)
  utilized by a client department captured in the
  asset register which has almost been completed
  (93). However, discrepancies still need to be
  corrected and updated on the asset register.

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KEY FOCUS AREAS (Continue)

• Property Status PHASE 2
• In view of verifications done of facilities
  utilised by clients and the importance of such
  data for the User Asset Management Plans linked
  to the devolution of budgets, it is necessary
  that the status of properties be updated on the
  register.

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CHALLENGES

• Correction of discrepancies remains a challenge,
  this includes
• Improvements that were demolished and the
  information was never updated in PMIS.
• Change of use of improvements
• Demolition of dilapidated vandalised houses
• Non state-owned properties captured as
  state-owned.
• Unimproved land captured as improved properties
• Units incorrectly captured in PMIS
• Ownership of property
• Property Status
• Land extent (ha) incorrectly captured as square
  metres (m²)

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CHALLENGES (Continue)

• Lack of capacity within the Utilisation
  Contract Administration Units in Regional
  Offices. These Units are the key managers of the
  immovable asset register.
• The lack of a dedicated Asset Register Unit
  within the Regions impacts on the strategic focus
  of the Department to have a continuously updated
  and correct information in the Register

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WAY FORWARD

• Phase 1 needs to be completed in terms of
  populating floor areas (m²) fields followed by
  the correction of discrepancies identified.
• Phase 2 needs to be executed in terms of
  verification and corrected of exiting populated
  fields concentrating on property status, in order
  to comply with the essential data requirements of
  the Auditor and Accountant General

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• THANK YOU

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Comments/Questions

• How were additional properties found?
• State owned properties and the Committee had
  oversight visit and the DPW is blamed for not
  up-keeping properties. Why? Representative of DPW
  unable to offer expected responses. Lack of
  synergy between PWD and DPW

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Comments/Questions

• Limpopo no structure Thokoza SAPS is not in
  place. The DPW Budget where is that spent and why
  there are roll-overs? DPW as Asset Manager of
  State is obligated to account on all related
  properties. Key Focus Areas UAMPs how does that
  relates to the Asset Register?

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Comments/Questions

• Lack of Capacity at Regional Offices and
  relevance to Red Tapes?
• DPW desire to manage its immovable assets
  effectively the status needs to be corrected
• AM depends on accurate and reliable info in the
  Asset REGISTER, Why?
• Demolished Improvements not recorded and how does
  DPW spend to improve, demolish and no information
  recorded o the PIMS? How?

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Comments/Questions

• What happens to land where a building has been
  demolished?
• Non-State Owned Properties captured as State
  Owned, explain the Phrase?
• Unimproved land captured as improved properties,
  why?
• Units incorrectly captured in PIMS? Why?
• Land extent incorrectly captured as meters not
  squares. Why?
• Explanation of Ownerless Property

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Comments/Questions

• It is the fist time the Committee received an
  Update on the Asset Register Previous responses
  lacked direction
• Key Thing raised were beyond the borders of SA?
  Coming to the Committee
• Progress Report on the Asset Register is
  promising
• EPWP and the concerns on whether or not Road
  Infrastructure people are assisted to register
  own companies, e.g. Galeshewe
• Visit to Provinces depicted a process of people
  being paid differently GP vs. KZN. Concern that
  people are sleeping and no one monitoring them

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Comments/Questions

• Emerging Contractors and the registration and
  rating thereof? Concern where they continue to
  work as labourers instead of contractors?
• GP leading EPWP in an area (Boipatong) and the
  same person is not monitoring project and
  contractors were paid monies. Why?
• Client Departments, transfers made by those
  departments and DPW unable to perform because
  there were no payments and departments likewise
  blaming DPW. E.g. no progress in the School
  building Programme
• Asset Register, what is the role of Land Affairs
  claiming to do own Asset Register
• Leasing of Land and the responsibility and the
  programme

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Land Affairs

• Ministers role in ensuring Asset Management and
  the responsibility of Land Affairs responsibility
  is in so far as vesting of property into the
  authority of relevant Department through the
  Deeds Register
• DFA responsibility for foreign based properties
  and what Minister Radebe directed how it should
  and that is now being re-visited
• Standing Task Team between DFA and DPW to promote
  congruency

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Emerging Contractors

• Unintended consequences of the register limited
  the of participation but latest data indicates
  improvements
• Contractors can now do work up to R1m and
  DPW/CIDB is reviewing Programme of work in excess
  of R2m but less than R30m
• Alignment Process is being finalized.

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Comments/Questions

• Two sides are dedicated to EPWP and the Committee
  needs more information especially failures and
  success of the Programme? Extent to which DPW
  participates in the process including removal of
  alien plants
• Respond of the DG regarding transfers of funds
  towards the financial year 2005 complained
  about Katlehong and Heidelburg Courts. Land
  Realized to correct the Development Progress and
  to date Court has not been finalized?

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Comments/Questions

• 13 years down the line the Committee gets first
  report signals challenges and there is a wish
  that the Committee must have an oversight on
  this. Those doing audits must be able to unearth
  the wrongs done by those with necessary
  authority. Work in Progress and there will be a
  report in future
• Were there fraudulent activities in so far as
  registration and the handing over to the SAPS.

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Comments/Questions

• EPWP receives similar status of the Asset
  Register and look at a detailed report Special
  Committee Meeting
• Which Municipalities have been capacitated enough
  to administer, manage and report on the EPWP
  Detailed Reporting
• Committee agree that there is a flaw at Regional
  level when it comes to required Capacity levels
  E.g. Rustenburg Municipality and the disposal
  that occurred to some people by a Region.
  Linkages between region and Municipalities

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EPWP

• Progress on funding
• Alien Plants and eradication thereof
• Exit Strategy and the rate DPW works with
  Municipalities on related Programmes and local
  communities respond to DPW Programmes
• Project Visits are welcomed including making a
  detailed presentation to the Committee. 144
  Municipalities have been targeted for the
  roll-out of the related EPWP and there are
  recorded challenges which are being addressed
  in-house and those stakeholders

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EPWP

• Entire EPWP will be subjected to a Mid-Term
  Review for the past two and half year and that
  will be submitted to the Cabinet Lekgotla

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Comments/Questions

• Committee suspects Provinces are not able to
  identify their assets What is the role of NDPW
  on the updating of the Asset Register
• Launch of Projects where students were givens
  certificates in line with EPWP National
  Construction Week

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ASSET REGISTER

• Property Description and extent
• Ownership Status Deeds Register
• Type of Use and future Use
• Valuation of the Property
• Continued Management and/or Ultimate
  qualification as a Redundant building thereby
  submitted for the Disposal Route

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Re-Affirmed Position

• Commissioned Research on the Mid-Term Review and
  impact of the Report on the Code of Good Practice
  Re-entering of the Programme and the stipulated
  timelines and how that affects sustainable work.
  Cannot remain in the Programme for more than two
  years and if that is so it is regarded as
  permanent jobs.

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• Admissions on the Strategic Plan allows the
  committee to see areas that require intervention.