PRESENTATION TO THE SELECT COMMITTEE on PUBLIC SERVICES 20 NOVEMBER 2012 1 DPW: CAPE TOWN REGIONAL OFFICE

PRESENTATION TO THE SELECT COMMITTEE on PUBLIC SERVICES

20 NOVEMBER 2012

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DPW: CAPE TOWN REGIONAL OFFICE

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ORGANIZATIONAL STRUCTURE OF THE CAPE TOWN REGIONAL OFFICESTAFF COMPLEMENT OF THE CTN REGIONAL OFFICE

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Number of employees:•890 employees, •17 disabled•12 contract workers•4Young Professionals•1 Management Trainee•13 Interns •148 vacancies

Vacancy rate 14.26%

STRATEGY TO FILL POSTS

•Advertising, Shortlisting & Interviewing in respect of all funded positions.

•OSD Posts are a challenge, especially Professional Registration.

•Proposal made to advertise 2 X Project Managers, 6 X Technician posts and expansion of Young Professionals programme.

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INTERNAL AUDIT COMMITTEE REPORT

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FINAL AUDIT 2011/12: AUDIT INTERVENTION PLAN (DPW)

Finding Action Plan Target date Responsible Official

Progress

1. Payments not made within 30 days

All invoices are now received at Registry which will curb misplacement thereof.

Reviewed on a monthly basis

D: Projects Monitored on a monthly basis to ensure 95% compliance

2. Irregular expenditure: procurement of prestige assets : 3 quotations not obtained, deviation not reported, tax clearance certificate not obtained, incorrect preference points used

All deviations are approved by CD: SCM furthermore substantiating evidence for deviation is obtained. Deviations are also reported on a monthly basis.

Implemented as from April 2012

D: Prestige/SCM Due process are followed and monitored monthly to ensure 100% compliance

3. Missing employee file

All files are signed for in a register. A request was made to HO for HR registry clerk.


DD: HRM Implemented and being monitored monthly to ensure 100% compliance

4. No credit check performed on rental debtors

Credit checks are always checked prior conclusion of lease contracts, this was an oversight.

Implemented as from May 2012

DD: Utilization Implemented and monitored monthly to ensure 100% compliance

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Progress

5. Incomplete tax invoice

Checklists have been implemented to ensure compliance.

Implemented from May 2012

Line Managers/ SCM Implemented and monitored to ensure 100% compliance

6. Inventory count process: deficiencies identified

Inventory will be counted in a systematic manner as recommended by AG.

Implemented February and done Annually

DD: SCM Implemented and monitored annually to ensure 100% compliance

AUDIT INTERVENTION PLAN (DPW) cont…

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AUDIT INTERVENTION PLAN (PMTE)


Progress

1. Leases – renewal above R1m not reported to AG, TCC not obtained from landlord, PA-11 not signed

A proper procurement process for renewals is now followed and all the necessary documents are requested for all renewals.


D: Property Management

Implemented and monitored to ensure 100% compliance

2. Leases – payments not made within 30 days

These payment s were delayed due to awaited approval, registration of new landlord. It is always ensured that payments are paid within 30days to curb payment of interest.

Implemented from April 2012

D: Prop Man/Finance

Implemented and monitored monthly to ensure 100% compliance

3. FM contract – reasons for negotiating with current service provider not acceptable, negotiated procedure not reported within 10 days to NT and AG

In future deviations will be reported accordingly


All line managers Implemented and monitored to ensure 100% compliance

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AUDIT INTERVENTION PLAN (PMTE) cont..


Progress

4. Excessive travel costs incurred

Payment of these costs have since been stopped. Bid documents will be simplified to be understood by all relevant parties, payments will be made according to contract documents.

Implemented in April 2012

DD: Works Management/D: Prop


5. Leases: fruitless expenditure not recorded

Regular inspections will be conducted to verify occupancy by client departments. Monthly fruitless expenditure report is updated and submitted to HO.


D: Prop Man/DD: Acquisitions

Implemented as capacity allows to ensure 100% compliance

6. Expenditure not accrued for

Accruals will be regularly updated with invoices received after year end.

Implemented Quarterly/year end since April 2012

D: Finance Implemented and monitored quarterly to ensure 100% compliance

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Progress

7. Lease contract not signed

An addendum to the previous lease will be compiled and request landlord to sign same.

15 October 2012 DD: Acquisitions/ D: Prop Man


8. Invalid tax number on tax invoice – WCS payment

A thorough verification of VAT number and will be done by a senior official prior sign off.


D: Projects Implemented and monitored to ensure 100% compliance

9. Leases – incorrect amount paid to the supplier

Payments are paid according to the signed lease agreements


D: Prop Man/DD: Acquisitions


10. Payment made without a valid tax invoice: WCS consultants

Consultants are required to attach a supplier tax invoice with their claims



11. Misclassification of expenditure: Unplanned maintenance

Capital and current expenditure will be classified as per communiqué received from HO




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Progress

12. Contingent liability not raised

Regular updates on reported claims requested from Legal Services.


DD: Legal Services/D: Fin

Implemented and monitored quarterly to ensure 100% compliance

13. Site inspections not performed

Site inspections will be conducted when additional capacity is provided

Target date to be set in accordance with available capacity

DD: Acquisitions/ D: Prop Man

No progress to date


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BUDGET VS EXPENDITURE

Item Budget 2012/13 Expenditure 2012/13 % Expend at 31 Oct 2012

Compensation of Employees

171,140,000 102,290,527 59,77%

Goods and Services 36,850,000 21,918,624 59,48%

Leasing 295,989,451 171,445,034 58%

Unplanned Maintenance

93,899,604 62,743,923 67%

Planned Maintenance 446,101,745 312,233,920 70%

Capital Works 116,270,769 34,951,870 30%

Cleaning & Gardening Services

6,972,562 3,708,436 53%

Municipal Rates 161,152,169 153,655,944 95%

TOTAL 1,328,376,300 862,948,278 65%

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RATES OWED TO MUNICIPALITIESBRIEF OVERVIEW

• WC municipalities reported R46m pre-devolution debt due by NDPW (Cape Town)

• Only R17 034 695.80 of 616 invoices was presented to Property Management Regional Support (PMRS) (Portfolio of Evidence available)

• PMRS forwarded the claim to Cape Town region 20/06/2012 to verify, reconcile and pay

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BREAKDOWN # MUNICIPALITY AMOUNT

CLAIMED (accs received from HO)

AMOUNT PAID REASONS FOR NON-PAYMENT

1 City of Cape Town 13 434 101.05 - Land owned by Municipality, Sanparks, Nature Conservation, National Housing Board

2 Swellendam 1 002 353.77 - Munic not yet visited 3 Overstrand 873 681.44 294 675.33 Verification process4 Bergrivier 649 741.14 12 436.53 Munic not yet visited 5 Theewaterskloof 583 366.66 71 700.12 Verification process6 Matzikamma 194 104.42 - Already settled in previous year7 Swartland 104 423.10 - Already settled in previous year8 Saldanha Bay 82 004.85 131 954.00 9 Langeberg 67 036.05 8 260.00

10 Cape Agulhas 30 917.22 - Already settled in previous year11 Stellenbosch 12 821.57 - Already settled in previous year12 Bitou 235.53 - Already settled in previous year13 Oudtshoorn - 1 099 440.84 14 Witzenberg - - 15 Knysna - - 16 Hessequa - 24 512.29

PRE-DEVOLUTION ARREAR RATES REPORT AT 8 NOVEMBER 2012

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BREAKDOWN cont…17 George - - 18 Breede Valley - - 19 Drakenstein - - 20 Cape Winelands - - 21 Central Karoo - - 22 Eden - - 23 Overberg - - 24 Westcoast - - 25 Cederberg - - 26 Mosselbay - - 27 Kannaland - - 28 Beafort West - - 29 Laingsburg - - 30 Prince Albert - 7 859.21

Totals 17 034 786.80 1 618 466.82

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CHALLENGES

• Schools built on municipal land

• Rates payments allocated to old services

• Private owners (Sanparks; Nature conservations; National Housing Board)

• Compound Interest and Legal fees

• Services debt still not transferred to Province

• Capacity

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WAY FORWARD

• Continue with one-on-one engagements with municipalities

• City of Cape Town debt to be revised

• Proposal on payment of interest

• Investigation of ownership confirmation to be fast tracked.

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Built Environment Services responsible for:•All projects inclusive of Prestige•Islands: Robben, Marion, Gough and Antarctica•Recoverable projects for Defence and Parliament•Health and SafetyChallenges:•Integrated computer system•Filling of critical posts•Position of previously identified Senior Project Managers as supervisors•No or limited support from Head Office•Limitations on Goods and Services budget

PROJECTS

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NYS:ACTIVE PROJECT BENEFICIARY TARGET LIST

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PROPERTY MANAGEMENT

• Providing services at Robben Island, Marion and Gough Islands as well as SANAE Base.

• Administers some 550 leases in 12 Proclaimed Fishing Harbours.• Servicing three Parliamentary Villages, Ministerial Estates and Parliamentary

Precinct.• Workshops executing small Planned Maintenance projects Property Management effectiveness and efficiency are curtailed because of:• Current policies and procedures relating to leases do not speak to the actual

needs for management of leases.• Lack of Human Resources in several sections.• Current staff structure of Workshops impacts negatively on Minister’s

undertaking to resurrect Workshops.

NUMBER OF NATIONAL LAND PARCELS IN WESTERN CAPE: 4650

NUMBER OF ITEM 28 (I) CERTIFICATES ON OUR RECORDS: 1240

NUMBER OF PROPERTIES VESTED: 2413 (RDLR RECORD)

NUMBER OF PROPERTIES VESTED REGIONAL OFFICE RECORDS:

3323

NUMBER OF DUPLICATIONS REMOVED FROM IAR: 90% COMPLETE

NUMBER OF PROPERTIES STILL TO BE VESTED: 910

NUMBER OF TITLE DEEDS TO BE ENDORSED PRIOR TO PROJECTEND DATE: 4000

CURRENT STAFF ON IAR: 6 COMPRISING 1 Senior Admin Officer; 1 Admin Officer AND 4 CONTRACT WORKERSSTAFF REQUIRED TO MEET DEADLINE: 18: REQUIRED 1 Assistant Director; 2 Senior Admin Officers; 3 Admin Officers; 12 Admin Assistance

ONGOING PROJECTS FOR IAR: PAPER TRAIL; DEVOLVED PROPERTY; VESTINGS; UPDATING MANDATORY FIELDS ON IAR.

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WORKSHOP STAFF

• Cape Town: 109

• Langebaan weg: 22

• Robben Island: 10

• Oudtshoorn: 11

• 2 mil Wynberg:14

• Total no of officials in the workshop:166

Number of vacant positions: 38

The 38 vacant positions are at various levels.

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ARTISAN TRAINING

• Plumbing course and trades test: 5 attended and 4 qualified.• Bricklayer course and trades test: 4 attended and 3 qualified.• Carpenter course and trades test: 6 attended and 4 qualified• Electrical course and trades test: 9 attended and 4 qualified.• Painting course: 7 attended and they are still waiting to write

trades test.

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•KAM as the Client Departments’ entry point to DPW for all their accommodation related requirements has a client centric approach in respect of all their Capital, Planned Maintenance, Unplanned Maintenance and Lease matters.

•KAM’s effectiveness and efficiency are curtailed because of:1.Lack of specialists/Professional services. 2.Branch led from HO, capacity challenges at HO.3.Life-cycle planning for buildings and equipment are not done – due to lack of capacity of PPM in the Regions.

KAM

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FINANCE & SCM SUB-DIRECTORATES Financial Accounting and Budgeting

• Management of 1103 Prestige debtors which includes Ministers, DGs, Sessional Officials and MPs.

• Management of 639 PMIS debtors inclusive of the fishing harbour's debtors. Provisioning and Auxiliary Services

• Procurement of movable assets for Prestige residences and offices.• Provide support / auxiliary services to the Minister and DG’s offices in Parliament.• Provide fleet services for various satellite offices, e.g. Langebaan Workshop,

Oudtshoorn Workshop, Robben Island, Horticulture, etc. Procurement

• Procurement of goods and services for maintenance voyages to Antarctica, Marion and Gough Islands, Horticulture Section as well as Prestige.

Movable Assets• Management of 1534 locations with 89710 movable assets. These locations consist of

Ministerial Houses and Offices, DG flats, VIP Houses, Workshops, etc. Information Technology

• Provide IT support to the RO, DG and Ministers offices in Parliament as well as various satellite offices within the Western Cape.

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Finance’s effectiveness and efficiency are curtailed because of:• Need to Reconfigure of Finance and SCM structure and filling of vacant posts• Review of delegations, processes and standardization of reporting framework• Thorough review of current financial systems, e.g. debtors system• Communication challenges between RO and HO affecting turnaround time

LEGAL SERVICES

• Volume of work large due to the Proclaimed Fishing Harbours and Parliament• Legal Service’s effectiveness and efficiency are curtailed because of:

Challenge with turnaround time from State Attorney’s office, in terms of evictions and debt recovery.

Access to legal documentation. Inadequate system to maintain contracts.

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HUMAN RESOURCE MANAGEMENT

Org structure and size of the establishment not meeting delivery requirements;

Service Prestige clients including Parliamentarians, Robben Island & other Islands such as Marion Island, Gough Island, & Antarctica Island.

HRM’s effectiveness and efficiency are curtailed because of:•Capacity / Structure•Most work done by lower ranking officials•Inadequate HR systems and Business Processes

THANK YOU

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Documents

PRESENTATION TO THE SELECT COMMITTEE on PUBLIC SERVICES 20 NOVEMBER 2012 1 DPW: CAPE TOWN REGIONAL OFFICE