National Department of Public Works The implementation of GIAMA in National and Provincial Governmen

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National Department of Public Works The
implementation of GIAMAin National and
Provincial Government

• Portfolio Committee on Public Works
• 16 October 2007

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1. Introduction

• This presentation outlines the proposed plan for
  the implementation of the Government Immovable
  Asset Management Act in the National and
  Provincial spheres of Government.

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2. Current Status

• The Government Immovable Asset Management Bill
  B1B-2006 was adopted by both National Assembly
  and National Council of Provinces and has been
  submitted to the President for approval. In the
  interim, DPW has
• Finalized a comprehensive guideline for the
  compilation of User Asset Management plan (U-AMP)
  and has been distributed for further comment.
• Developed a comprehensive discussion document on
  the proposed approach to extend GIAMA to local
  government, which was presented to dplg.
• Established a DPW/dplg task team which will look
  into the best way to extend the principles and
  objectives of GIAMA to Local Government, taking
  into account existing legislation.

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Current Status (continued)

• Established the GIAMA Technical Committee
  consisting of representatives of both National
  and Provincial Custodians, that will meet at
  least once every 3 months to -
• make inputs on guidelines, norms standards,
  minimum requirements, etc
• develop a common approach to the compilation and
  maintenance of immovable asset registers
• develop an implementation plan for both national
  and provincial department and
• advise Minister/MECs and DG/HODs of Public
  Works on guidelines, norms standards, minimum
  requirements, etc.

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Current Status (continued)

• Commenced with workshops, discussions and
  interactions to highlight to provincial
  departments the requirements of GIAMA. The
  workshops and briefing sessions that we have
  conducted to date are
• KwaZulu-Natal Provincial Department
• Eastern Cape Portfolio Committee
• Eastern Cape Provincial Department
• Mpumalanga Provincial Department
• Limpopo Provincial Department
• DPW Property Managers Forum
• DPW Top Management Committee
• DPW Asset Managers and IT Managers

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Current Status (continued)

• Commenced with the development of other
  guidelines such as the compilation and
  maintenance of immovable asset registers as per
  the requirements of GIAMA.
• GIAMA remains a standing agenda item at all
  Public Works HOD and MIN/MEC meetings.
• DPW continuously consults with National Treasury
  to ensure consistency with the Public Finance
  Management Act (PFMA) and its regulations, as
  well as National Treasurys Asset Management
  Guideline.

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3. Responsibilities of User

• A user of immovable assets utilises such assets
  to give best effect to its functions and
  therefore must produce a user asset management
  plan (U-AMP) to ensure
• accountable, fair and transparent utilisation of
  immovable assets
• effective, efficient and economic use of
  immovable assets
• reduced overall cost of service delivery
• reduced demand for new immovable assets.

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4. Responsibilities of Custodians

• Custodians are responsible for the efficient
  effective management of immovable assets
  throughout their life-cycle and therefore must
  produce a custodian asset management plan to
  ensure that immovable assets are
• provided in a transparent cost effective manner
  to meet the service delivery requirements of
  users
• maintained in the state in which they would
  optimally support service delivery objectives
• assessed in relation to performance, suitability,
  condition effect that condition of an asset has
  on service delivery ability and
• disposed of if the assessments so indicate.

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5. Immovable Asset Management Plans

• All national and provincial departments will be
  required to annually compile an Asset Management
  Plan (AMP) that will form part of Governments
  strategic planning budgeting processes.
• A department responsible for custodial functions
  in respect of immovable assets will compile a
  Custodian AMP (C-AMP) that must cover all the
  immovable assets (State-owned and leased) that
  such custodian controls or intends to control.
• A user of immovable assets will compile a User
  AMP (U-AMP) that must cover all the immovable
  assets (State-owned and leased) that such
  department uses or intends to use.
• Custodians and users of immovable assets should
  jointly conduct the annual strategic planning
  process. Custodians must assist users by
  availing information pertaining to
• performance of immovable assets allocated to such
  users and
• available feasibility studies on acquisitions,
  refurbishments and assets to be surrendered.

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Immovable Asset Management Plans (Continued)

• All AMPs must be submitted to the relevant
  Treasury annually (on a date to be determined by
  that Treasury).
• AMPs will inform the annual budgetary process and
  must be revised once budget allocations are
  finalised by the relevant Treasury.
• Revised AMPs must be included in the annual
  strategic plans of national and provincial
  departments and will therefore be presented to
  Parliament Provincial Legislatures respectively.

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Users strategic objectives Immovable asset
information (To be provided by Custodian)
Immovable Asset Planning Budgeting Cycle
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6. Implementation requirements

• Minister of Public Works to consult with
  role-players and to publish a plan that determine
  the dates for implementation of GIAMA
• For the implementation to take effect the
  Minister must
• Publish regulations and guidelines for Immovable
  Asset Management Plans
• Publish norms and standards in support of
  Immovable Asset Management and Asset Management
  Plans
• Determine the applicable dates for implementation
  by Users and Custodians
• Exempt departments or assets to which GIAMA does
  not apply

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7. Key Role-players

• National Treasury
• Office of the Accountant-General
• Budget Office
• Provincial Treasuries
• Custodians
• National Department of Public Works
• Department of Land Affairs
• Department of Water Affairs Forestry
• Provincial Departments of Public Works
• Other Provincial Custodians
• Users
• National Provincial

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8. Provincial Pre-implementation

• Self assessment questionnaire to assess state of
  readiness
• Each Province prepare a step by step
  implementation proposal for implementing GIAMA in
  that province
• Commence systematic update of immovable asset
  register information with essential information
• Determine which properties each custodian is
  responsible for
• Where custodianship is undetermined or in
  dispute between national and provincial, a
  deemed custodian must be determined through
  consultation , until vesting has been confirmed
• Determine who is occupying the facilities, taking
  into account shared facilities
• Shared facilities include multiple provincial
  users and national/provincial users

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9. GIAMA State of Readiness

• Given the varied state of readiness of users and
  custodians, the Minister of Public Works would
  need to consider a phased approach to the
  implementation of GIAMA.
• As a custodian, NDPW has done some preparatory
  work to implement GIAMA and National Government
  is therefore in a position to precede Provinces
  with the implementation of GIAMA.
• Each custodian (in consultation with users, where
  applicable), must submit a proposal on the
  implementation of GIAMA in its sphere of
  operation to the DG of NDPW, based on the
  following parameters
• state of immovable asset register
• institutional capacity and
• specific constraints that such custodian and
  users may face. (A self-assessment questionnaire
  will be provided to assist custodians.)
• NDPW, in consultation with all custodians will
  prepare a single implementation plan for GIAMA
  taking cognisance of such proposals.

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10. Guidelines and Regulations

• Planning Guides
• Immovable asset management
• User asset management plans
• Custodian asset management plan
• Custodian Guides
• Life-cycle management
• Condition assessment
• Asset performance measurement
• Feasibility assessment
• Asset register (compilation and maintenance)
• Valuation
• Operations Guides
• Acquisition of immovable assets
• Maintenance (Planned and day-to-day)
• Facilities Management and Operations
• Disposal of immovable assets

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11. Norms and Standards

• Classification system for assets
• Space and cost norms of each asset class
• Service life and life-cycle costing
• Condition norms and maintenance standards
• Facilities management standards
• Required performance standards

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12. Institutional Capacity

• Required skills
• Strategic planning
• Financial management
• Technical
• Internal policies processes aligned with GIAMA
• Asset management policies
• Strategic management budgeting processes in
  both user and custodians
• Asset-, property - facilities management
  processes
• Customer satisfaction measurement monitoring
• Asset Performance Management Frameworks
  (Custodians only)
• Monitoring evaluation of implementation of
  GIAMA within the ambit of a custodians
  responsibility

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13. Technical Committee Deliverables

• The following issues were identified during the
  meeting of the GIAMA Technical Committee as
  priorities for uniform guidance to all provinces
• Government officials in state owned housing
  National and Gauteng
• Valuation of properties - National
• Leasing of accommodation from the private sector
  National, Gauteng, North West and Free State
• Minimum requirements for the asset register
  National and Limpopo
• Vesting of state owned properties National and
  Western Cape

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Technical Committee Deliverables (Continued)

• Devolution of property rates and taxes National
  and Gauteng
• SA Schools Act (School board vs custodian
  responsibilities) - National
• Each Province may establish sub-forums for Users
  and Custodians
• Training and workshops will be conducted on a
  regular basis

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14. Key milestones before implementation
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15. Proposed implementation dates
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16. Conclusion

• GIAMA affords government the opportunity to
  improve service delivery through
• A facilitated process to improve asset management
• Structured immovable asset management plans to
  improve
• implementation of new maintenance and operational
  programmes
• funding of asset related activities
• Developing people to fulfil the GIAMA-related
  functions at national and provincial level
• It is therefore vitally important that
  Departments are well versed with their current
  asset portfolios and future requirements in order
  to plan appropriately.

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THANK YOU!!!
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