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Highlights from the

2004/5 DPW Annual Report

Year ended 31 March 2005Delivered by the Director General,

James Maseko

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Agenda

• Recap on the vision and mission

• Strategic drivers and score card

• Summary of our performance per programme

• Financial Performance

• Summary of achievements

• Conclude with strategic challenges

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VISION

The department of Public Works (DPW) is committed to

facilitating delivery by other departments by providing

accommodation and property management services and

meeting the objectives of poverty alleviation and

transformation.

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MISSIONThe DPW aims to promote the governments objectives

of economic development, good governance and rising

living standards and prosperity by providing and

managing the accommodation, housing, land and

infrastructure needs of national departments, by

promoting the Expanded Public Works (EPWP) and by

encouraging the transformation of the construction and

property industries.

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Strategic DriversHave kept the ship on trackTurn around financial management

Zero tolerance to corruption

Drive govt’s flagship EPWP

Ensure an integrated human resources strategy

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Strategic DriversStrengthen our leadership role in the

construction and property industries

Intensify industry transformation

Finalise GIAMF

Re-inforce our custodianship role

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Strategic driver outcome

Turn around financial management

All key finance posts filled at regional and head office,new officials trained, unqualified audit report

Zero tolerance to corruption Internal audit unit set up and strengthened, co-sourced forensic audit functions

Drive govt’s flagship EPWP 176 000 jobs created, increasingly, leadership role getting established

Ensure an integrated human resources strategy

HR strategy reviewed and new strategy to be in place in the new financial year, 60% of HR policies approved, wellness programme in place, EE committee in place, bargaining committee in place, vacancy levels down from 40.2 % to 18 %

Strengthen our leadership role in the construction and property industries

Initiatives launched to strengthen our BEE initiatives

Intensify industry transformation Played a key role in the construction and property charters

Finalise GIAMF Policy approved by Cabinet, Bill on it'e way to Parliament

Re-inforce our custodianship role SLA's playing a key role in bringing clarity and certainty

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Financial management turn around

• Unqualified audit report

• Improved financial controls

• Systems related issues resolved e.g. business and financial systems not aligned

• Better sense of where the rand and cents are going-under-spending a thing of the past

• Challenges: sustainability of improvement and improving efficiency of expenditure

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Zero tolerance on corruption• Corruption is a disease that requires continuous

and determined effort• Fronting is corruption and it is fraud• Not good enough to deal with symptoms• Internal audit investigations a key feature of our

environment• Challenge; continuous review of systems and

processes, reduction of reliance on consultants

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Summary of Performance IndicatorsIndicator Progress*

(1 Apr 2004 - 31 Mar 2005)

Number of EPWP projects being implemented or completed

3483 projects

Expenditure to date on EPWP projects R 3.2 billion

Number of gross work opportunities created

223,410 gross work opportunities

Number of net work opportunities created to date

174,845 net work opportunities

Person-years of employment created 71,087 person-years

Average duration of work opportunity 4.4 months

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Integrated HR strategy• HR strategy continuously reviewed to align

it with the strategic plan

• Wellness programme in place to support our staff

• A representative EE committee in place to advise management

• Departmental Bargaining committee in place

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2003/04 2004/05

Vacancy rate 40.2% 18.%

Staff turnover 10.9% 6.3%

Job evaluation 0% 71%

Summary of some of the HR stats

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Role in the industry• Our role has grown from strength to strength

• Led the construction and property charter processes

• Co-convened the construction industry conference

• Actively involved in the CETA

• Promoting labour intensive technology via EPWP

• CIDB’s contractor registers

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Summary of programme performance

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Programme 1Achievements:

• Strategic planning aligned to budgetting

• All DDG Posts now filled

• Performance bonuses brought tightly monitored

• Leadership Way introduced to change organisational

culture

• Re-engineering of Business Processes

• A determined focus on systems yielded results in key

areas

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Programme 2

Achievements:

• Improved optimal utilisation of immovable asset

• Minimum management standards developed

• Improved relationships developed with clients enabling

a high standard of co-operation

• Service Delivery Improvement Programme being

implemented

• Expenditure on key responsibilities have been achieved

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Programme 2

Challenges :

• Fragmented immovable asset management

• Utilisation of Immovable Asset Management (IAM)

techniques

• Skills shortage of built environment professionals

• Lack of Integrated State Property Information

System

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Programme 2 Cont

Solutions :

• Government-wide Immovable Asset Management

Framework

• Service Level Agreements and Client Value

Propositions established

• Calculations of replacement costs for inner city

buildings, investment analysis and property

valuation

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Programme 3Achievements:

• Launch of the following:

– Construction Industry Charter

– Property Sector Charter

Solutions :

• The department initiated a number of programmes to further

the goals of transformation and Black Economic Empowerment

(BEE) including :

– the pilot Incubator programme to benefit emerging contractors

– Classifying, registering and initiating development of contractors

through the Construction Industry Development Board (CIDB)

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Programme 4• Auxillary and associated services

Main expenditure is in the area of decorating public functions

Our role is being the logistics arm for national government including inaugurations, state funerals, state visits, national day celebrations

Not our core function but important enough to make us proud

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The numbers in summary

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3 year expenditure Trend

YEAR TOTAL BUDGET

EXPENDITURE

OVER/UNDER

(%)

R’000 R’000 R’000

2002/03 3 975 099 4 202 187 -227 088 (5.7)

2003/04 4 651 985 4 682 345 -30 360 (0.65)

2004/05 5 513 909 5 304 916 208 993 (3.8)

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Capital budget vs expenditureYEAR DPW

CAPITAL BUDGET

EXPENDITURE

OVER/UNDER

(%)

R’000 R’000 R’000

2002/03 135 148 119 864 15 284 (11.31)

2003/04 238 266 271 069 -32 803 (13.77)

2004/05 292 655 292 655 0

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Key points from financial performance review

Slight under-expenditure in 04/05 due to late additional allocation for property rates arrears: additional allocation made on basis of DPLG submission to

Cabinet re municipality claims of arrears non-submission of substantiating documentation by municipalities municipalities submitted current invoices as arrears municipalities submitted invoices for non-government properties

Generally, figures indicate that DPW has capacity to spend on infrastructure

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Summary of achievements

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Summary of achievements

Moved from disclaimer to qualified to unqualified audit report from 02/03 to 03/04 to 04/05

04/05 audit report has no matters of emphasis on the immovable asset register

Programme to verify and update information on immovable asset register formulated and now in implementation

Proactive disposal programme initiated, in implementation

Exceeded EPWP targets for first year

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Drafted Government Wide Immovable Asset Management Bill (GIAMA), approved by Cabinet, currently with State Law Advisor

Over past three years, put in place new structure based on asset management principles in GIAMA, with decentralised implementation

Conceptualised Tshwane Inner City Programme, obtained cabinet approval, in implementation, options analysis methodology developed

CIDB Act implemented: CIDB formulated and rolling out Contractor’s Register Various standards for construction industry issued

Summary of achievements cont..

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Challenges going forward• How to sustain the gains to ensure that we don’t

regress• Communicating our successes to all our

stakeholders (staff, clients, government, PC, public, media, etc)

• Focussing our energies on those things that can still go wrong

• Introducing knowledge management to institutionalise our Intellectual property (IP)

• Overall-a good year on all accounts

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Thank you

• Staff for their resilience and dedication

• Portfolio committee for all constructive criticism

• All our stakeholders

• My management team for the hard work and helping to drive the change