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Quarter 2 Report 2012/13

DEPARTMENT OF PUBLIC WORKS Portfolio Committee Presentation 30 th October 2012 Parliament of the Republic of South Africa. Quarter 2 Report 2012/13. Purpose. Purpose of the Presentation by the Department of Public Works

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Quarter 2 Report 2012/13

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  1. DEPARTMENT OF PUBLIC WORKSPortfolio Committee Presentation30th October 2012Parliament of the Republic of South Africa Quarter 2 Report 2012/13

  2. Purpose • Purpose of the Presentation by the Department of Public Works • To reflect on the Quarter 2 information and financial performance of the Department of Public Works in the financial year 2012/13 • Objective of the Portfolio Committee on Public Works • Briefing by the Department of Public Works on the second quarter performance of the department for 2012/13.

  3. Programme 2: Immovable Asset Investment Management • Asset Investment Analysis • Key Account Management • Professional Services & Project Management Key Underachieved: Actual vs. Target Comparison and Underachievement: Current Progress below the previous Quarter Overachieved: on target or over the target Tentative: Data to be confirmed/Validated

  4. Strategic Asset Investment Analysis

  5. Key Account Management (KAM)

  6. Professional Services and Project Management

  7. Human Resource – Vacancy Rate Vacancy rate – moving target that changes over time and is based on the system's update at the time of reporting

  8. Construction and Property Policy In this case, yellow code represents slow progress (Work in progress)

  9. Programme 3: Expanded Public Works Programme (EPWP)

  10. Programme 3: EPWP * 847 Correction Data to be confirmed later

  11. Overall assessment of the DPW • DPW still faces challenges of (inter Alia): • Delays in SCM processes • Under spending in key programmes and have an adverse impact on service delivery • Capacity constraints to execute key and core programmes • Coordination between Head Office and Regional Offices • The Challenges are summed as follows: • These challenges are to be addressed under the 14 Projects of the Turnaround and plans have been put in place to address these challenges Planning Structural Fissure Resourcing/ Capacity Systematic Challenges

  12. Turnaround ProjectsUnderpinned by continuous stakeholder engagement and communications strategy

  13. Financial Performance

  14. Financial Performance per Programme –(Linear Benchmark 50%) Figures are expressed cumulatively

  15. Summary: Expenditure per Economic Classification –(Linear Benchmark 50%)

  16. Notes to the expenditure Compensation of employees • The overall expenditure for the department as at the end of the September is R4.137 billion, and expenditure is equivalent to 52% of the total allocation. • Compensation of employees’ expenditure for the month ended September is R680 million, and the amount spent is equivalent to 54 % of the total allocation. • Goods and Services expenditure for end of September is R278 million, and expenditure is equivalent to 47% of the total allocation. • Expenditure for Office Accommodation is R137 million and expenditure is equivalent to 29% of the total allocation of R469 million.

  17. Notes to the expenditure Transfers and subsidies • Transfers and subsidies expenditure for the end of September 2012 is R 2.7 billion, and expenditure is equivalent to 67% of the allocation of R4.1 billion. • The expenditure for transfers and subsidies for payments to provinces and municipalities is in line with the approved payments schedule. • Payments to entities were also made as per schedule.

  18. Notes to the expenditure Capital payments • Infrastructure expenditure for the end of September is R276 million and expenditure is equivalent to 19% of the allocation of R 1.176 billion. • Expenditure is far below the Linear Benchmark 50% and under spending is therefore projected. • Machinery and equipment expenditure for the end of September is R17 million and expenditure is equivalent to 18% of the total allocation of R116 million .

  19. Notes: Programme 1: Administration • Compensation of employees expenditure for Programme one is R108 million, and expenditure is equivalent to 54% of the total allocation of R198 million. Expenditure is higher than the guideline of 50%. • Goods and services expenditure for programme one is R103 million and expenditure is equivalent to 52% which is in line with the guideline of 50%. • Expenditure for Office Accommodation is R137 million and expenditure is equivalent to 28% of the total allocation. • Expenditure for transfers and subsidies for programme one is R1 million and expenditure has exceeded the budget. • Expenditure for machinery and equipment is R11 million and expenditure is equivalent to 44% of the total allocation.

  20. Notes: Programme 2: IAM • The total expenditure for programme two is R2.9 billion and expenditure is equivalent to 53% of the allocation for the programme. • Compensation of employees expenditure is R518 million, and expenditure is equivalent to 54%. Expenditure is 4% higher than the guideline of 50% for the straight line. • Goods and services expenditure for the end of September is R86 million and expenditure is equivalent to 47% of the total allocation. • Transfers and subsidies expenditure is R1.97 billion and expenditure is equivalent to 74%. The expenditure for transfers and is in line with the payment schedule as all payments were paid in accordance with the approved drawings. • Infrastructure expenditure for the end of September 2012 is R 276 million and expenditure is equivalent to 19% of the allocation of R 1.484 billion. • Expenditure for machinery and equipment is R5.8 million and expenditure is equivalent to 8% of the total allocation.

  21. Notes: Programme 3: EPWP • Total expenditure for programme three is R861 million and expenditure is equivalent to 51% of the total allocation. • Compensation of employees expenditure is R50 million, and expenditure is equivalent 53%. Expenditure is higher than the guideline of 50%. • Goods and services expenditure is R48 million and expenditure is equivalent to 28%. • Transfers and subsidies expenditure is R761 million and expenditure is equivalent to 54% of the allocation. • Machinery and equipment expenditure is R835 000 and expenditure is equivalent to 53% of the allocated budget.

  22. Notes: Programme 4: Policy • Total expenditure for programme four is R16 million and expenditure is equivalent to 41% of the allocated budget. • Compensation of employees expenditure for programme four is R3.7 million and expenditure is equivalent to 26% of the allocation. • Goods and services expenditure is R12 million, and expenditure is equivalent to 50%. Expenditure for goods and service includes payment to Agrement SA. • Machinery and equipment expenditure for the end of September is R17 000 and expenditure is equivalent to 15% of the total allocation.

  23. Notes: Programme 5: Auxiliary • Total expenditure for programme five is R45 million and expenditure is equivalent to 115% of the allocation. • Over spending in programme five is due to high spending under goods and services. • Goods and services expenditure for the month ended September is R30 million, and expenditure is equivalent to 173%. Overspending under goods and services relates to State Function for two funerals declared state events. • Funding relating to the funerals has been requested as part of the Adjustment Estimates. • Expenditure for transfers and subsidies is R15 million and expenditure is equivalent to 70% of the total allocation.

  24. Property Management Trading Entity (PMTE)

  25. Financial Performance of the PMTE

  26. Accommodation Charges (State Owned)

  27. Accommodation Charges (State Owned)

  28. Accommodation Charges (State Owned) • 79% of the amounts invoiced have already been received. (This represents 40% of the amount to be invoiced for the year). • Second quarter invoices were issued during July 2012 • Third quarter invoices to be issued during October 2012 • 46% of the outstanding debt relates to accounts outstanding for 90 days. • 95% of outstanding amounts in total relates to current year • Clients are resistant to pay as we are still not in a position to compile itemized billing • Justice has indicated in writing that they will not pay if not supplied with itemized billing • Defence has short paid their invoice by R 128 million indicating that their budget has been reduced. This translates to a R 512 million reduction in the envisaged Revenue • The total budget has been adjusted to accommodate that.

  29. Accommodation Charges (Private)

  30. Accommodation Charges (Private)

  31. Accommodation Charges (Private)

  32. Accommodation Charges (Private) • 32% of the money received against this item relates to prior years • 60% of amounts invoiced have been received • 80% of the outstanding amounts for the current financial year is less than 90 days • An amount of R 25 million has not been claimed as it relates to disputed properties where the Client either disputed occupation or the rental being paid • The Department will negotiate with National Treasury to move the amounts initially incorrectly allocated against Public Works for Constitutional Institutions (CGE, SAHRC, etc.) to the correct budgets. • This was planned for the Adjustment Estimates, but we did not meet the deadline and it will therefore have to be included in the ENE exercise

  33. Recoverable CA • Total amount of R 186 m outstanding for current year • R 173 relates to Defence – Special Arms of Services projects • Meeting are taking place with the Client to address the Arms of Service that are not paying their claims • Older balances: • Government Printers are disputing the total cost of their project • DIRCO is disputing the total cost of their project

  34. Overall Performance Monitoring Schedule Progress but underachievement 51% - 79% No Progress/Grossly under-performing /expenditure Ratings between - 0 – 30% Reasonable progress 80% - 99% Partial Progress and needs improvement - 31% - 50% On target/over achieved 100% & /Over expenditure

  35. THANK YOU National Department of Public Works (NDPW) Head Office: Public WorksCGO BuildingCnr Bosman and MadibaPretoria CentralPrivate BagX65Pretoria0001 Website: http://www.publicworks.gov.za

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