1 / 37

2015-2020 Strategic Plan & 2015/16 Annual Performance Plan of the Department of Public Works

This presentation provides an overview of the strategic plan and annual performance plan of the Department of Public Works for the period 2015-2020. It covers the format and requirements of the plans, legislative and policy mandates, and the department's vision and mission.

banita
Download Presentation

2015-2020 Strategic Plan & 2015/16 Annual Performance Plan of the Department of Public Works

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PRESENTATION TO THE SELECT COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENTON THE 2015-2020 STRATEGIC PLAN AND 2015/16 ANNUAL PERFORMANCE PLAN OF THE DEPARTMENT OF PUBLIC WORKSDirector-GeneralDepartment of Public Works14 May 2015 2015-20 Strategic Plan 2015/16 Annual Performance Plan

  2. TABLE OF CONTENTS

  3. 1 Format and layout of the Strategic Plan and Annual Performance Plan This section sets out the minimum requirement for Strategic Plans and Annual Performance Plans as per the Framework for Strategic Plans and Annual Performance Plans

  4. NATIONAL TREASURY GUIDELINES FOR STRATEGIC PLANS AND ANNUAL PERFORMANCE PLANS • The Framework for Strategic Plans and Annual Performance Plans, issued in September 2010, provides a new format and revised timeframes for the compilation of the Strategic Plan and Annual Performance Plan. • National Treasury issued an Instruction Note (No. 33) in July 2011 on the full compliance to the mandatory requirements of the Framework for Strategic Plans and Annual Performance Plans. • A Strategic Plan covers a period of at least five years ideally from the first planning cycle following an election linked to the identified outcomes of the Presidency. • A Strategic Plan may be changed during the five year period it covers. However, such changes should be limited to revisions related to significant policy shifts or changes in the service delivery environment • The Annual Performance Plan sets out what the institution intends doing in the upcoming financial year and during the MTEF to implement its Strategic Plan. • The format of the APP (including the tables) is prescribed by the National Treasury Framework for Strategic Plans and Annual Performance Plans and aims is to link the plans, budget and performance of the Department. • Annual targets are broken up into quarterly targets where possible to ensure effective monitoring of performance on a quarterly basis

  5. NATIONAL TREASURY GUIDELINES FOR STRATEGIC PLANS AND ANNUAL PERFORMANCE PLANS

  6. 2 PART A: Strategic overview This section specifies the vision, mission, values and the goals that the Department aims to achieve over a five-year period. (SP Pages 16-68)

  7. LEGISLATIVE AND OTHER MANDATES • Constitutional mandate: • The Constitutional mandate is provided for in Schedule 4, Part A, of the Constitution of the Republic of South Africa: Functional Areas of Concurrent National and Provincial Legislative Competence. • Legislative mandate • The legislative mandates of the Department are underpinned by the following Acts: • Government Immovable Asset Management Act, 2007 (Act No. 19 of 2007); • the Construction Industry Development Board Act, 2000 (Act No. 38 of 2000) • Council for the Built Environment Act, 2000 (Act No. 43 of 2000) • Professional Council Acts that regulate the six Built Environment Professions (BEPs); • Public Finance Management Act, 1999 (Act No. 1 of 1999). • Other Acts listed in Annexure A • Policy mandates • DPW White Paper: Public Works, Towards the 21st Century, 1997 • DPW White Paper: Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry, 1999 • Construction Sector Transformation Charter, 2006 • Property Sector Transformation Charter, 2007 • DPW Broad-based Black Economic Empowerment Strategy, 2006 • Property Management Strategy on BBBEE, Job Creation and Poverty Alleviation, 2007 • Green Building Framework, 2011

  8. INTRODUCTION AND STRATEGIC CONTEXT The following Government priorities form the basis of the Strategic Plan informed by the Performance Agreement of the Minister of Public Works and the 2014-2019 Medium Term Strategic Framework:

  9. EPWP : OVERALL EPWP PHASE III WORK OPPORTUNITIES TARGETS: PER PROVINCE

  10. EPWP INCENTIVES - MTEF ALLOCATION

  11. EXPENDITURE ON EPWP INTEGRATED GRANT TO PROVINCES AS OF 31st MARCH 2015

  12. INTRODUCTION AND STRATEGIC CONTEXT In addition the following national priorities has also been considered as significant to the Strategic Plan:

  13. INTRODUCTION AND STRATEGIC CONTEXT Vision A service-oriented Public Works Department focussing on the formulation of policy and legislative prescripts for the delivery of sound immovable asset management while contributing to the national agenda for social and economic development. Mission • setting legislative and policy prescripts together with norms and standards for the management of state-owned and leased-in accommodation, land and infrastructure for the Public Works sector; • supporting provinces to fulfil the concurrent functions and service delivery obligations in the Public Works sector; • contributing to the national goals of job creation and poverty alleviation through the coordination of the Expanded Public Works Programme (EPWP); • providing guidance to our stakeholders to facilitate delivery in the built-environment within the context of Department’s mandate; and • affording strategic leadership to the South African Construction and Property industries

  14. INTRODUCTION AND STRATEGIC CONTEXT Values • Integrity • Professionalism • Teamwork • Innovation Strategic Goals • Sound legislative and policy prescripts to accelerate service delivery; • Oversight, leadership and support to Provincial Public Works; • Coordination of the EPWP Phase III for the creation of decent employment through inclusive economic growth; • Strategic leadership and regulation of the construction and property sectors to promote economic empowerment and skills development; and • Good corporate governance to support effective and efficient service delivery.

  15. PLANNED POLICY INITIATIVES • The Department will review and/or develop the following policies and legislation: • Review of the Department’s White Papers: “Public Works towards the 21st century, 1997; and Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry, 1999” towards the development of an enabling legislation • establish Agrément South Africa (ASA) as a public entity mandated to assess non-standardised and/or unconventional construction products, materials and systems fit for purpose, • develop a draft Built Environment Professions (BEP) Policy towards possible amendments to the legislative framework governing the BEPs, • promulgation of a new Expropriation Act (repealing the Expropriation Act 63 of 1975) to ensure consistency with the Constitution and uniformity in the expropriation of property by all expropriating authorities, • develop legislation to establish the Independent Development Trust (IDT) to support the State in the delivery of social infrastructure, • develop a Green Building Policy and Strategy for the Department to give effect to Government’s green economy initiatives.

  16. STRATEGIC OVERVIEW – EXTERNAL ENVIRONMENT • Economic trends and outlook - Whilst our economy will benefit from the reduction in the oil price and the immediate lift that it provides for the trade and current account balances, the energy deficit that we face over the medium-term will remain a material constraint on economic performance. • The Property Sector - The current trends in the Property Sector offer some relief to the escalations in leasing costs to the PMTE. The challenges encountered by the PMTE include the backlog of maintenance on State-owned accommodation resulting in the over reliance on leased in accommodation. A coordinated and uniform approach in the management of its immovable assets will be undertaken to create a better balance between private leases and utilisation of existing stock of State-owned accommodation • The Construction Sector - The building and construction sector is expected to grow at an average of 4.6%. Government’s ability to roll out its infrastructure programme has been criticized in the past few years. The Department has put in place various key interventions to build capacity to spend its infrastructure budget and to address fraud and corruption in the sector • Political Environment - Trends in the political environment are influenced by events taking place in other emerging economies worldwide. Domestic drivers of politics for the next five years will include issues of governance. To complement the drive for good governance the Department has put into place processes to strengthen the previously weak SCM operating model, procedures and processes.

  17. STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT The Department’s policy priorities are derived from the Policy Statement of the Minister of Public Works and the Seven Year Turnaround Plan • Key policy priorities • The creation of 6 million work opportunities for poor and unemployed people through the labour-intensive delivery of public services and infrastructure. • The operationalisation of Property Management Entity (PMTE) and the transformation of the core property business (including construction management); • The operationalisationof the Governance, Risk and Compliance Branch to drive anti-corruption and to spearhead the second phase of the Turnaround Strategy; • A policy review which will culminate in a Public Works Act; and • A renewed and sustained Programme of Action to transform the built environment and the construction and property sectors, as part of the second more radical phase of transition to democracy .

  18. STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT 2. The Turnaround Strategy Phase I – The Stabilisation Phase This Phase was initiated during 2012 with the specific purpose of ensuring clear and systematic improvements across the Department. The Stabilisation Phase (ended on 31 March 2014) has achieved critical and foundational milestones although there are still various stabilisation projects continuing into the next phase. In this regard, the following successes are noted: • The operationalisationof the PMTE to oversee the State’s asset investment, property and facilities management functions in line with Generally Recognised Accounting Practice (GRAP). • Developing a complete and credible Real Estate Asset Register (REAR) under the Department’s custodianship in terms of which registered and unregistered land parcels were reconciled against the deeds records and other National and Provincial immovable asset registers. • A comprehensive audit of 2 161 leased properties was completed. This audit included the physical verification of 2 143 leased properties. • Substantial improvements by the Department were made as is evidenced by progression from disclaimers in 2010/11 and 2011/12 to a qualification in 2012/13 and an unqualified audit outcome in 2013/14. • Improved internal efficiencies within the Prestige portfolio have been realised by centralising this function in the office of the Director-General.

  19. STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT • The Turnaround Strategy (cont…..) Phase II – Efficiency Enhancement The Efficiency Enhancement Phase commenced on 01 April 2014 during which time, ten (10) projects were prioritised to drive this phase of the Turnaround Strategy. These projects include, among others: • The Service Delivery Improvement Plan (SDIP) and Macro Service Delivery Model are in place. The SDIP, will in the longer term, become the business improvement process for the Department and PMTE; • The operationalisationof the PMTE and its establishment as a Trading Entity. • Supply Chain Management (SCM) is being restructured to meet the business requirements. • Improving internal efficiencies to meet the service delivery requirements of Prestige clients is underway to ensure that deliverables comply with the prescripts of the Ministerial Handbook. • Developing an Information Technology (ICT) strategy, architecture and platform as a key enabler has been prioritised for immediate implementation. • Combating fraud and corruption within the Department as well as in the construction and property sectors, while holding transgressors accountable for their actions and • Implementing an effective Change Management Strategy to enable a performance driven culture has already been initiated in an effort to restore a performance management culture in the Department.

  20. STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT 3. The business model of the Department of Public Works Whilst operationalising the PMTE, the Department will place greater emphasis on: • developing best practice within the sector; • managing the transformation and growth of the construction and property sectors; • drafting legislation and undertaking regulatory functions; • formulating policies and implementation guidelines for the sector; • setting norms and standards for the Public Works Sector; • managing the norms and standards and policy formulation for the Prestige Client Portfolio; • coordinating the implementation of the EPWP; • focusing on its role in terms of the concurrent functions and the management of performance in this regard; and • carrying out oversight functions and coordination of the Entities.

  21. STRATEGIC OVERVIEW – INTERNAL ENVIRONMENT • 4. Public Works Concurrent Function • The public works function is a shared competency between the National and Provincial Governments in accordance with Schedule 4 of the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996). • In the absence of the Public Works Act, MinMechas provided the basis for oversight and coordination of the concurrent functions. • As a forum of co-operative Government, MinMechas been utilised to consult, coordinate implementation and align programmes/priority areas including: • The upscaling of EPWP to ensure sustainability, delivery of public services and infrastructure and adequate institutional capacity; • Infrastructure planning, delivery and management in terms of GIAMA (U-AMPs/ C-AMPs) and IDMS; • Service delivery improvement interventions, capacity building, resource management and proper internal controls (incl. SCM); • Socio-economic growth through consultation and cooperation with wider stakeholders towards renewed and sustainable development • The Policy Review, including the appraisal of the White Papers (1997 and 1999) and broad consultation with the wider Public Works community will provide a solid foundation for the Public Works Act. This process aligns with the third phase of Turnaround Strategy and will ensure the creation of coherent Government structures and processes that will deliver the mandated services through the three spheres of Government.

  22. PERFORMANCE ENVIRONMENT • The following achievements have been noted in the service delivery environment • Commendable improvements in internal controls which has resulted in improved audit outcomes for DPW. • Achievements of EPWP Phase II with the creation of over 4 mil work opportunities. Significant contribution has been noted in various sectors. • Challenges in the current service delivery environment and strategies for redress • Deficiencies in the internal control environment – The Department has compiled a comprehensive action plan which is also reviewed by Internal Audit. The Action Plan is updated quarterly and discussed at Accountability EXCO. • Inadequate internal performance management operating procedures – interventions include the development of policies, procedures and processes, proper record keeping, training, improved quality controls, M&E Forum • Lack of integration of performance information structures and systems within existing management processes and systems (ICT) – A 3 Phased approach to improving ICT infrastructure and systems has been developed. The business application stack is key in the stabilisation phase. • Inability to retain and attract the required skilled personnel – A Change Management Strategy has been developed to address capacity challenges and manage the change process. The implementation of the new organisational structure will be supported by a comprehensive Human Resource Plan.

  23. PERFORMANCE ENVIRONMENT • Additional strategies identified to improve efficiencies in the performance environment • Alignment of the concurrent functions • Development and implementation of the Service Delivery Model Framework (SDMF) • Meeting the needs of Prestige clients • Actively reducing fraud and corruption in the Department • Demand for services – Demand for EPWP in terms of the upscaling for Phase III • High and growing rates of unemployment are a consequence of dynamics on both the demand and supply sides of the labour market. • There has not been sufficient employment growth to absorb new labour market entrants or to provide jobs for those people who experienced job losses due to shrinking demand for labour • The EPWP is a nationwide programme covering all spheres of government and state-owned enterprises. It aims to draw significant numbers of unemployed people into productive work accompanied by training, so that they increase their capacity to earn an income. • Spending focus over the MTEF in accordance with the Department’s priorities • The Department’s budget over the medium-term is R20.7 billion. The budget of R6.4 billion is projected to increase to R6.9 billion in 2016/17 and R7.4 billion in the 2017/18 financial years. • The devolution of the budget allocation of approximately R11.2 billion to the PMTE has resulted in the decrease in the Departmental budget allocations over the medium-term. The budget allocation for the devolved functions has been reclassified as transfers and subsidies to the PMTE within Programme 4.

  24. HIGH LEVEL ORGANISATIONAL STRUCTURE

  25. ORGANISATIONAL ENVIRONMENT • The Department has reviewed the organisational structure for DPW and PMTE which will be approved and implemented over the MTEF. • PMTE is being operationalised to undertake the immovable asset management functions across the asset lifecycles • The Department has refined its role to give effect to improved oversight practices to ensure the coordinated and integrated delivery of services through, policy formulation, determining regulatory prescripts including setting norms and standards, and overseeing the implementation of these functions. • The Department has an approved establishment of 1 618 posts of which 1 413 are filled. Focus over the next term is on strengthening the functions within DPW – Intergovernmental Relations, Policy, EPWP, Prestige and Governance, Risk and Compliance. • An integrated Human Resource Plan has been developed to respond to Government’s priorities and to align the Department’s workforce with the mission, vision, strategic goals and financial resources of the Department. • DPW will continue to provide support to the PMTE during the transition to the Government Component whilst strengthening the remaining functions

  26. BUDGET ALLOCATION SUMMARY PER PROGRAMME

  27. BUDGET ALLOCATION SUMMARY PER ECONOMIC CLASSIFICATION

  28. MTEF ALLOCATION – EARMARKED FUNDS

  29. 3 PART B: Strategic objectives and programme plans This section specifies strategic objectives and their resource implications for each budget programme (SP Pages 70-83 and APP Pages 20-71)

  30. PROGRAMME OBJECTIVES AND BUDGET

  31. PROGRAMME OBJECTIVES AND BUDGET

  32. PROGRAMME OBJECTIVES AND BUDGET

  33. 5 PART C: Links to long term infrastructure plan This section provides the details to other plans that the Department factors into its planning process, Public Entities reporting to the Department and Conditional Grants (SP Page 103-147)

  34. PART C – LINKS TO OTHER PLANS • Service Delivery Improvement Plan – The SDIP is a detailed plan with target to improve delivery in critical services over the next three (3) years. The SDIP is underpinned by the need to adopt the Infrastructure Delivery Management System (IDMS) as the primary system for the management of delivery. The SDIP sets out in clear terms the following three areas for improvement which have been identified through a scientific situational analysis process. • Provisioning of accommodation through construction (aligned to the IDIP); • Provisioning of accommodation through private leases (aligned to IDIP); and • Customer relationship management. • Strategic Risk Plan – Listed below are the strategic risks where specific attention and resources will be focused. i. Fraud and Corruption arising from failure to comply with legislative prescripts ii. Inability to implement the proposed structure iii. Insufficient technical capacity to support PMTE iv. Lack of integrated business systems v. Loss of State funds due to breach of contracts by non performing contractors vi. Uncertainty of Business Continuity resulting from change vii. Exposure to fraud and corruption viii. Failure to deliver quality services ix. Ineffective implementation of the Expanded Public Works by implementing bodies x. Low levels of transformation in the Construction and Property Industries xi. Non adherence to Prestige Regulatory frameworks by Prestige clients

  35. PART C – CONDITIONAL GRANTS • The Department received the following conditional grants under the Expanded Public Works Programme: • EPWP Integrated Grant to Provinces • EPWP Integrated Grant to Municipalities • Social Sector EPWP Grant for to Provinces • Non State Sector Wage Subsidy.

  36. PART C – PUBLIC ENTITIES • There are four Public Entities reporting to the Department of Public Works. The Entities serve as an extension of and assist the Department in delivering on its mandate.

  37. THANK YOU National Department of Public Works (NDPW) Head Office: Public WorksCGO BuildingCnr Bosman and MadibaPretoria CentralPrivate Bag X65Pretoria0001 Website: http://www.publicworks.gov.za

More Related