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National Public Works Immovable Asset Register Programme (IAR) August 2012

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Title: National Department of Public Works Immovable Asset Register Programme Progress Report Author: Fida Shamsoodeen Last modified by: User Created Date – PowerPoint PPT presentation

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Title: National Public Works Immovable Asset Register Programme (IAR) August 2012


1
National Public Works Immovable Asset Register
Programme (IAR) August 2012
2
Executive Summary
  • DPW embarked on the reconstruction of its IAR in
    November 11 and has completed an extensive
    exercise of
  • analysing the deeds database other relevant
    registers/ information sources to assist in
    determining which properties are National,
    Provincial or other custodians
  • defining a fair value model which will be applied
    to properties as the carrying value going forward
  • defining a new operating model to better manage
    the IAR and DPWs concurrent mandate going
    forward
  • This reconstruction exercise has identified a
    significant amount of work that is required to
    resolve a multitude of unresolved legacy issues
    which requires extensive interaction with DRDLR,
    Provinces, NT and other stakeholders
  • The approach adopted by the IAR programme will
    ensure that a baseline compliant IAR is produced
    covering all required assertions (completeness,
    accuracy, ownership etc)
  • The gaps identified indicate that a significant
    amount of work (including physical inspections)
    is required in order to comply with NT and audit
    requirements as current compliance level is in
    the region of 40-50.
  • DPW HO and Regional teams are in the process of
    completing data analysis and cleansing that arose
    from Deeds comparisons and are expected to
    complete this by (1) 30 Sep 12 and (2) 31 Dec 12
  • The cleansed data will form the basis of physical
    inspections from Oct 12 to Aug 13 to confirm
    information required to comply with requirements
  • The position with the Provinces and compliance
    with NT Sector Specific Guide will be regularised
    by March 2013 with relevant follow up work by Aug
    13
  • Our target is to have a substantially complete
    and compliant IAR by March 2013 with required
    follow up of remaining gaps to be completed by
    Sep 13

3
Executive Summary - Key successes
  • There is a clear plan outlining what needs to
    done to produce a baseline compliant IAR
    incorporating all work previously done (where
    applicable)
  • Our time spent on extensive analysis, research
    and consultation with relevant stakeholders has
    confirmed the complexity and extent of work
    required which was addressed in prior projects
  • We have engaged extensively with stakeholders
    such as the AG, OAG, the Provinces to confirm our
    plan. We are again meeting with the AG during
    August 12 to confirm deliverables.
  • We have developed a custodian framework which
    will inform disclosure requirements and provide
    clarity going forward
  • We have developed a fair value model to value the
    IAR by Mar 2013 and a compliant capitalisation
    policy to ensure the IAR remains properly valued
    going forward

4
Executive Summary - Key challenges risks
  • We are still experiencing challenges in working
    with key stakeholders such as Deeds, CSG and
    other custodians to ensure that the right
    information and decisions are forthcoming to
    resolve state land issues and incorporation in
    correct IARs / financial statements
  • Mobilising sufficient resources in time given
    that significantly more work is required than
    originally anticipated due to
  • unresolved legacy issues (e.g. finalising
    devolution of provincial properties) and
  • exceptions arising from data analysis and deeds
    comparison
  • There is still a material risk attached to the
    data available to inform fieldwork requirements
  • Mobilising (in time) the requirements of DPWs
    concurrent mandate
  • Implementing a revised operating model (in time)
    to continue maintaining the IAR
  • Incorporating work previously performed or
    performed by other State departments in line with
    our timelines, e.g.
  • Defence UAMPS
  • CSG state land audit

5
Index to report
  • Background to DPWs asset register 6
  • Applicable assertions 7
  • Programme on a page 8
  • Key results of analysis conducted thus far 9
  • Position with provinces 10
  • Vesting process 11
  • Action plan on IAR concurrent functions 12
  • Appendices 13 - 21

6
Background to DPWs Asset Register
  • Prior 1994, there was no comprehensive
    computer-based register of state-owned immovable
    assets. Information on assets was captured in a
    variety of disjointed inventories, most of which
    were manual paper-based systems.
  • In 1995 the Department of Public Works commenced
    with the compilation of a comprehensive
    computer-based inventory of immovable assets
    under the control of both national and provincial
    custodians. The project was undertaken with the
    assistance of private contractors and completed
    in 1999.
  • The information that was gathered included
    physical address of properties cadastral
    description and extent of land parcels
    utilisation and users of properties zoning and
    potential use of properties and photographs and
    footprint sketches of sites and improvements.
  • In order to address the gaps identified from the
    above-mentioned project, in 2005 DPW embarked on
    the Asset Register Enhancement Programme (AREP)
    and was completed on 31 March 2008, to enhance
    the asset register. The scope of the project
    focused only on 33 555 immovable assets and the
    following information was enhanced
  • Linking of land parcels with improvements
  • Measuring floor areas of buildings where such
    information was not previously captured
  • Establishing use and identity of occupants
  • Capturing servitude rights over selected state
    properties and
  • Capturing photographs, drawings and footprints of
    improvements for the selected properties.
  • Servcon and Intersite Solutions were further
    appointed in December 2007 to verify the
    essential information fields of DPWs and
    provincial Public Works asset registers and
    conduct condition assessments on State-owned
    properties.
  • In 2009, DPW and the service providers resolved
    to put the project on hold in order to verify the
    authenticity of data to determine the amount
    payable to the service providers.
  • Asset register is a continuous exercise due to
    the incompleteness and inaccuracy of information

7
Applicable assertions
Assertion Approach Comment
Completeness -Use of deeds download in conjunction with DRDLR extensive reconciliation of data with other state land custodians for all registered properties. -Deeds / Aktex is used as a basis and substantiated with other documents e.g. Original Title deeds SG diagrams -IAR fields checked against NT minimum requirements - Compliance with the Sector specific guide, position with provinces confirmed (List A/B) to determine who discloses what. Dependencies -CSG for provision of surveyed land -Deeds for the registration of unregistered land -Vesting process for National and Provincial properties but we are reconstructing a complete position by virtue of Deeds analysis recon -Provinces confirming properties supplied to the AG and Provincial Usage properties(List A/B)
Accuracy Reliability - Initial reference is made to the Aktex and substantiated by original title deeds and SG diagrams for accuracy. - Data cleansing performed and fieldwork to be performed Dependencies Availability of original title deeds/ docs Surveying of land
Ownership Rights Obligations -Ownership is confirmed as per Aktex / Title Deed -Surveying of state land to confirm ownership -Physical verification to prove property use confirm custodian Dependencies Surveying process scheduled to be completed by 31 March 2014
Existence - Physical verification to prove existence and have photos, GPS Coordinates SG diagrams as portfolio of evidence For 2012/13, 60-70 of properties will have been verified.
Valuation -FV model developed and in process of socialising To be applied 2012/13
Presentation Disclosure -Extensive interaction with provinces, DRDLR and other custodians Aim for 2012/13 is to have first proper consolidated view and to ensure right properties disclosed in right AFS
Completeness will be qualified until CSG
completes survey process , but IAR Programme aims
to provide a reconciled position of State land
by 2012/13
8
Programme on a page
Focus for 2013 is on completeness based on Deeds
accuracy improved given data cleanse
fieldwork
Position with provinces sorted
Remaining assertions addressed ongoing update
process
State land audit information to be incorporated
Aug 12
Sep 12
Oct 12
Dec 12
Jan 13
Nov 12
Feb13
Mar 13
April 13
May 13
Aug 13
May 14
Mar 14
Sep 13
Data cleanse, reconciliation, resolve position
with provinces
Apply FV model
Wave 2 of SSP for 6 regions
Key projects activities required
Fieldwork 1 6 regions 2GP, KZN, WC, FS,NC
SSP adjudicate end Aug
SSP on-board, roadmap, train
Fieldwork 2 Remaining 5 regions
Apply FV
AG review final product
Pack IAR
Conduct AG fixes
Pack IAR
IAR adjust/ quality checks 1
Finalise capitalisation framework
Acquire tool
Design test tool
IAR adjust/ quality checks 2
Hand-over
Deeds refresh process
Detail design of new operating model
High level operating model
Recruit PM in regions
PMs trained onboard
Operate new operating model or interim structure
Implement new operating model
Detail design revised vesting process
Implementation of revised vesting process
Design approve FV model
Design new vesting process
Proposed timeline/ sequence
IAR preparation presentation
Fieldwork 1 has to finish by end Jan/ mid Feb
Final IAR snag list
Final IAR
  • IAR will comprise
  • -60 physical verification, remainder comprises
    desktop cleansed data
  • Defence UAMPS processed
  • Provinces accounted for snag list
  • Devolution done snag list
  • NT sector specific requirement incorporated in
    IAR (Provinces)
  • FV1 based on input from inspection
  • FV2 based on municipal value desktop

9
Key results of analysis conducted thus far
Analysis of Deeds properties
Total state land 182 345
Identified as provincial (111 937)
Identified as DRDLR (25 258)
Deemed National DPW 45 150
  • As a result of quantifying the above position,
    extensive engagement and confirmation with other
    custodians stakeholders is required before
    finality can be reached
  • We are still in the process of analysing and
    confirming above statistics
  • This is a complex process there are still
    significant challenges in identifying ownership
    given a multitude of naming conventions and given
    that the vesting process is still underway
  • National DPW has previously disclosed - 35 000
    properties in its annual reports
  • We have so far confirmed - 27 000 properties by
    reference to Aktex as being National DPWs
  • The remainder is currently being analysed and
    categorised and will be subject to relevant field
    work if required
  • Of the - 50 000 properties identified on our
    current IAR as potentially being provincial
    properties, we have confirmed that - 16 000 are
    indeed provincial properties that we are still
    required to disclose as they have not been vested
    by the provinces (NT sector specific guide
    requires DPW to disclose such)
  • The remainder is currently being analysed and
    forms part of the current engagement with the
    provinces to confirm disclosure requirements by
    National and Provincial DPWs

10
Position with provinces
  • It is clear from above that a significant amount
    of work is still required to clarify the position
    with provinces and to ensure accuracy and
    consistency of disclosure required in terms of
    current applicable frameworks
  • National DPW has allocated a specific team to
    resolve this by March 2013 in order to provide a
    consistent and reconciled national view of all
    state land
  • National DPW is engaging at MINMEC, HOD and GIAMA
    forums to address the above

11
Vesting process
  • Our focus to date has been on laying the
    foundations to address all assertions required to
    produce a baseline compliant IAR
  • We are aware that progress on vesting is
    significantly behind target at all levels of
    government (DPW 40,DRDLR 33, Provinces 16) in
    order to achieve the target date set at 2014 in
    terms of vesting master plan (agreement between
    DRDLR, DPW, Provinces)
  • We have completed the design of required
    interventions to address the vesting backlog in
    consultation with DRLDR and will implement
    revised process by Sep 12
  • Progress statistics and proposed intervention
    provided in Appendix
  • stats sourced from DRDLR

12
Action Plan on IAR Concurrent Functions (National
and Provincial Public Works)
13
National Public Works Immovable Asset Register
Programme (IAR) August 2012 Appendices
14
Appendices Enhanced vesting process 15 Vesting
stats 16 -17
15
Discrepancies investigated -Missing item 28(1)
certificates -Differences in the vesting stats
Unsurveyed land in former RSA
1
Land parcels not yet vested
2
Registered properties
Unregistered properties
PaperTrail physical verification (Docs land
use) input
Surveying process of underlying land
Bulk vesting at H/O Prepare PSLDVC Application
3
DRDLR PROCESSES
QC at HO (Regions)
4
Tracking Monitoring
5
Registration process National Republic of South
Africa
Completed PSLDVC application
Obtain PSLDVC resolution (May require more
frequent meetings)
Submit PSLDVC application (for recommen-dation)
Capture PSLDVC application on LAW system
(PSLDVC Secretariat in DRDLR region)
Submission by DRDLR HO DG Signs
certificate Issue S28(1) certificate
Applicant instructs State Attoney to lodge
Registrar of Deeds Endorses
Update DPW IAR (need for centralised, iEWorks dB
used by all)
6
  • Reconciliation between various sources.
  • PaperTrail and physical verification inputs.
  • Bulk vesting process at Head Office
  • QC at HO and Regions before preparing/submitting
    application.
  • Tracking, Monitoring and status updates access
    to the LAW system
  • Central dB to track movement of vesting status
    for DPW to track

16
National DPW vesting statistics Cumulative from
April 94 to Jun 12
Province 31 Dec 2011 30 June 2012 Vesting certificates Issued Dec 11 to Jun 12
EC 1,292 1,292 0
FS 2,194 2,223 29
GP 2,091 2,158 67
KZN 1,835 1,858 23
L 499 525 26
MP 962 1,008 46
NW 353 383 30
NC 1,470 1,570 100
WC 2,356 2,362 6
Total 13,052 13,379 327
DPWs current vesting process is not properly
structured and not managed appropriately. There
is a lack of information given the current state
of the IAR and inadequate project management.
An enhanced vesting process has been designed
in consultation with DRDLR and will be
implemented in September 2012.
17
Cumulative vesting statistics April 1994 to 30
June 2012
NATIONAL NATIONAL NATIONAL DRDLR DRDLR PROVINCES PROVINCES
Province IAR Vested Still to be vested IAR Vested Deeds Vested
EC 2,336 1,292 1,044 7,149 1,920 7,911 2,423
FS 3,179 2,223 956 616 648 5,145 1,118
GP 8,791 2,158 6,633 851 153 29,016 2,485
KZN 4,589 1,858 2,731 7,271 633 22,196 5,937
L 2,333 525 1,808 2,475 3,181 8,500 653
MP 2,375 1,008 1,367 3,604 1,341 13,257 1,127
NW 2,035 383 1,652 2,083 609 2,738 772
NC 2,327 1,570 757 453 326 895 730
WC 4,963 2,362 2,601 Not Provided Not Provided 22,279 3,255
TOTALS 32,928 13,379 19,549 24,502 8,871 111,937 18,500
18
Appendices Results of deeds and other
reconciliations 19-21
19
Deeds Reconciliation
  • ,,
  • Assumptions and limitations
  • Based the analysis on DRDLRs LAW predetermined
    ownership categories as follows
  • 1. State Land Properties ( Provinces and
    National)
  • 2. Parastastals Properties
  • 3. Municipality Properties
  • 4. Unknown Properties - Usually cleared and is
    blank
  • 5. Private Properties and
  • No registered Owner
  • Shares properties with multiple registered
    owners on the deeds web are being analysed
    separately
  • There are also duplicates within the data
    received from the deeds office
  • All National properties where DRDLR does not have
    supporting documentation are deemed to be
    National DPW properties unless accounted for by
    another custodian

20
DPW IAR (PMIS) analysis - Own
  • Above will form basis for fieldwork and
    workpackages going forward

21
DPW IAR (PMIS) analysis - provincial properties
included in PMIS
  • Based on the 2011 PMIS system 50,364 properties
    were classified as provincial and formed basis of
    analysis
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