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Strategic Plan for MTEF Cycle 2003/4 to 2005/6

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Title: Strategic Planning for MTEF Cycle 2003/4 to 2005/6 Author: user Last modified by: Shaheda Created Date: 2/17/2003 2:17:23 PM Document presentation format – PowerPoint PPT presentation

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Title: Strategic Plan for MTEF Cycle 2003/4 to 2005/6


1
Strategic Plan for MTEF Cycle 2003/4 to 2005/6
  • Presentation to the Public Works Portfolio
    Committee on 21 May 2003 by
  • James Maseko, Director-General
  • National Department of Public Works (NDPW)

2
Strategic Planning for MTEF Cycle 2003/4 to 2005/6
  • Presentation Outline
  • Introduction Governments Planning Cycle
  • Key Challenges facing the NDPW
  • Strategic Overview
  • Significant Shift in Strategic Direction
  • Current Restructuring Transformation
  • Key Policy Developments
  • Budget and Programmes
  • Conclusion

3
Introduction
  • Since my first such presentation to the Portfolio
    Committee some background on Governments
    Planning Cycle is given to contextualise the
    presentation
  • In 1999 Government moved to strengthen strategic
    planning process by adoption of the MTSF/ MTEF
  • The President instructed FOSAD MANCO to develop a
    multi-year planning cycle which includes a
    strategic planning framework
  • The planning process consists of 9 steps

4
Government Planning Framework
5
Step 1
  • Departments begin in September/October identify
    3 or 4 new MTS priorities with measurable
    indicators
  • These priorities must be in line with 5 priority
    areas for Government
  • Be informed by MTSPs Cabinet approved in
    preceding year (first list of priorities is
    approved at January Cabinet lekgotla, reviewed
    and finally approved
  • at July lekgotla) for operationalisation

6
Step 1 contd..
  • Be located at strategic level and state where
    coordination with other agencies will occur
  • Identify partnerships with other stakeholders
  • Priorities should be presented in a report
    indicating strategic objectives, policy
    priorities, indicators, programmes, available
    budget resources (or if additional funds are
    required) with supporting explanations and skills
    required and/or motivation for additional skills
  • Submitted to the Presidency by 16 October
    annually

7
Step 2
  • DG Clusters assess departmental submissions
  • Develop Cluster-relevant priorities and
    indicators that emphasise integration and
    coordination
  • Submit to FOSAD MANCO by 16 November in same
    format departments use

8
Step 3
  • During December FOSAD MANCO and
  • G A DG Cluster assess cluster-level strategic
    priorities review, synthesise and amend inputs
  • Produce draft MTSF with support of the Central
    Coordinating Committee by 15 December

9
Step 4
  • Draft MTSF submitted to January Cabinet lekgotla
    for debate, review and approval
  • Priorities and indicators finally integrated and
    synthesised
  • Thereafter the MTSF is included in the
    Presidents State of the Nation Address in
    February and cascaded downwards to Clusters and
    departments

10
Step 5
  • The MTSF is explicitly geared towards achieving
    increased transparency and accountability sets
    Governments goals and indicators by which
    success and failures will be measured
  • It includes a review of the past year and a
    thorough analysis of success and failures
  • The State of the Nation Address (SONA)
    communicates the main thrust of the MTSF and the
    Programme for the year to the nation at large

11
Steps 6 7
  • Step 6
  • GCIS is responsible for initiating and managing a
    high-profile campaign to inform the public about
    the contents of the MTSF
  • Step 7
  • During February March MinComBud, the PCC, the
    Budget Council and Budget Forum have joint
    responsibility for MTSF consultation with local
    and provincial spheres of Government

12
Step 8
  • Step 8
  • Once the MTSF is distributed Ministers and DGs
    are responsible to ensure that their staff is
    familiar with it and the direction that it
    provides for the various programmes
  • Spending agencies undertake a detailed planning
    and budgeting exercise to align their programmes
    and projects with the priorities in the MTSF by
    way of their business plans

13
Step 9
  • Step 9 Monitoring, evaluation and reporting
  • Reviews of Governments corporate strategy occur
    at mid-financial year programmes and
    expenditure), financial year-end (evaluation of
    annual business plans and service delivery
    performance) and mid-term Policy priorities of
    Government) (departmental strategic and
    operational plans for first year of next MTEF
    cycle submitted 15 workings after annual budget
    speech which was 26 February 2003 this year)

14
July Cabinet Lekgotla
  • July Cabinet lekgotla provides opportunity to
    incorporate new and unforeseen needs or events
    and feed it into next MTSF planning cycle

15
Governments current Strategic Priorities or
Policy Thrusts
  • Growth, Investment and Employment
  • Human Resource Development
  • Prioritising the Poor and Disadvantaged
  • Fighting Crime and Corruption
  • Effective and Efficient Government
  • Nation Building
  • A Better Africa In A Better World

16
Process for Strategic Business Planning in the
NDPW
  • Three high level strategic goals/priorities were
    adopted at TMCs strategic retreat held from 3 6
    Oct 2002 for submission to The Presidency
  • Ten strategic drivers were also formulated
  • NDPWs Ten-Year Review Planning and SONA
    submission to The Presidency made in Nov 2002
  • Our final Estimates of National Expenditure (ENE)
    for MTEF 2003/4 to 2005/6 to National Treasury on
    6 Dec 2002 and finalised mid-January 2003

17
NDPWS Strategic Goals
  • Three high level strategic goals/priorities
  • a) Contributing to economic growth, investment
    and employment by effectively transforming the
    Construction and Property Sectors
  • Key Performance Indicators
  • Job creation through labour based technologies
  • Establishment of a Centre of Innovation and Best
    Practice
  • Intensification of BEE
  • Facilitation of infrastructure investment

18
NDPWS Strategic Goals Contd
  • b) In ensuring a concerted attack on poverty the
    NDPW will, as part of a comprehensive
    Government-Wide Expanded Public Works Programme,
    implement Community-Based Public Works
    initiatives.
  • Key Performance Indicators
  • Poverty Alleviation
  • Job Creation
  • Increased infrastructure investment
  • Development of Government wide Policy and Best
    Practice guidelines for the CBPWPs.
  • Implementation of Community Development Programme
    initiatives

19
NDPWS Strategic Goals Contd
  • c) Transforming the NDPW to be strategically
    positioned for optimising the value of the
    States immovable asset portfolio for effective
    service delivery.
  • Key Performance Indicators
  • Ensuring functional, economic and social returns
    for the State
  • Development of Government wide Immovable
    Immovable Asset Management Policy Framework and
    Legislation
  • Consolidated State Immovable Asset Register
  • Transformed Organisation for effective service
    delivery.

20
10 Strategic Drivers of the NDPW
  • Drive Governments Expanded Public Works
    Programme (EPWP)
  • Reinforce and highlight our immovable asset
    Custodianship/Ownership role
  • Establish a clear separation of our immovable
    asset Custodianship/Ownership and Service
    Provision roles
  • Reinforce our role as Policy Maker for the
    Construction and Property Industries
  • Refocus the NDPW for its effective contribution
    to Government-wide priorities, incl. Regional and
    International initiatives

21
Strategic Drivers contd
  • To be the Centre of Innovation for the built
    environment, infrastructure and property skills
  • Intensify the transformation of the Construction
    Industry, whilst initiating the transformation of
    the Property Industry
  • Develop Government-wide policy and best practice
    guidelines that deepens the impact of the CBPWPs
  • Ensure an integrated human resource strategy
  • Turn around financial management in all its
    facets, including clean Auditor-General reports
    and effective migration towards a Trading Entity

22
Key Challenges facing the NDPW
  • Lack of uniform guidelines regarding various
    aspects of public immovable asset management in
    all organs of the State.
  • Inadequate maintenance budgets that negatively
    impact on the environments where various public
    services are delivered.
  • Absence of an integrated information systems and
    appropriate skills to deliver on the Departments
    mandate.
  • Industry-wide challenges like
  • Capacity constraints within the Construction
    industry
  • Shortage of skills- inability to attract new
    skills
  • Skewed ownership within the construction and
    property industries
  • Transform the physical environment to improve
    service delivery.

23
Strategic Overview Key Policy Developments
1999/2000 to 2005/6
  • Main emphasis during 1999/2000 to 2002/3 on
    providing services to Client Departments
  • Initially the various Client Departments/
    Institutions negotiated funds for projects with
    National Treasury (NT) who then allocated it to
    NDPWs Vote
  • In last 2 years NT allocated funds to Client
    Department/Institutions Votes they therefore
    had direct control over such funds, but NDPW is
    still executing projects

24
Significant Shift in NDPWs Strategic Direction
  • A significant shift in NDPWs strategic direction
    to take place during 2003/4 to 2005/6 MTEF Cycle
    clear separation between 2 main roles e.g
  • - Being custodian of the States immovable
    properties, policy maker regulator of the
    Construction Property Industries as well as
    the National Public Works Program (NPWP)
  • - Provider of accommodation asset management
    services to National Departments/ Institutions

25
Current Restructuring Transformation
  • Restructuring transformation currently under-
    way to result in establishment of 3 separate
    Branches, namely
  • - A Branch within NDPW that is owner/custodian
    of the States immovable assets, responsible
    for policy-making, regulation of Construction
    Property Sectors and NPWP
  • - Accommodation and
  • - Asset management services to Clients
    Departments and Institutions

26
Key Policy Developments Initiatives
  • Some of the key policy developments initiatives
    NDPW
  • will embark on
  • A policy framework legislation to strategically
    reposition NDPW as owner/ custodian of the
    States immovable assets, and to enable it to
    optimise the value of these assets for more
    effective service delivery
  • Parliament will hopefully approve the
    Government-wide Immovable Asset Management Bill
    early in 2004

27
Good Governance Legislation
  • It is good governance legislation for
    acquisition, management disposal of immovable
    assets in order to
  • - Enable better allocation of limited resources
    for Government as a whole
  • - Ensure alignment of immovable assets with
    service delivery objectives
  • - Ensure more effective efficient use of
    existing immovable assets
  • - eventually lead to greener buildings

28
Addressing efficiencies, inconsistencies
duplication
  • - Address the inefficiencies, inconsistencies
    duplication of efforts in management of
    immovable assets, including infrastructure at a
    Government-wide level and
  • - Optimise functionality,economic and social
    returns from the State property portfolio
  • - Ensure it enhances and supports service
    delivery, mindful that it is a very costly
    resource, finite and has a huge impact on the
    macro-economic physical landscapes
  • Expansion of the Repair Maintenance Programme
    to address the maintenance backlog in other
    departments than Correctional Services

29
Budgets to be devolved
  • Budgets to be devolved are that of
  • - Leasing
  • - Maintenance
  • - Municipal services and
  • - Rates Taxes
  • Will encourage improved accountability for
    Accounting Officers and more economical,
    effective efficient utilisation of available
    scarce financial resources by NDPW and User
    Departments/Institutions

30
Issues for the next Budget Year
  • In general it is apparent that the Departments
    budgetary allocation is far inadequate to fund
    the Departments critical programmes.
  • The Department has demonstrated capacity to
    spend its allocated budget, as evidenced by the
    R34million over-expenditure in the 2001/02
    financial year as well as the current expenditure
    trends that indicate a potential over-expenditure
    of R40 million
  • The serious negative implications of
    under-funding are in the next forthcoming slides

31
Comparison of Requested and Approved Budgets at
Programme level
  •    AMOUNT PROPOSED DIFFERENCE
  • REQUESTED ALLOCATION
  • R millions R millions R millions
  • 1 Programme 1
  • Administration 304 277 27
  • 2 Programme 2
  • Provision of Land
  • Accommodation 4,321 3,851
    470
  • 3 Programme 3
  • NPWP 420 322
    98
  • 4 Programme 4
  • Aux. Assocd 12 12
    0
  • TOTAL 5 ,057 4,465
    592

32
Under-funding Implications
  • The implications of under-funding as they relate
    to the main cost Items are
  • Leasing The failure to honour lease commitments
    will result in the affected client departments
    being evicted from the offices they occupy.
  • Rates Taxes The municipal Services will be
    terminated with catastrophic results to public
    facilities like hospitals etc. In addition, this
    sphere of Governments service delivery efforts
    will be greatly compromised

33
Course of Action
  • In view of the under-funding, service delivery
    by the Department will be compromised. There
    however exists a window of opportunity in that
    additional funding may still be found around
    October during the consideration of Adjustment
    Estimates Appropriation Bill.
  • To this end, the Department appeals to the
    Committee to provide whatever support it has to
    ensure that additional funding is received as
    indeed, the cut back on expenditure is not a
    realistic solution to the problem.

34
Under-funding Implications contd
  • Maintenance May result to non compliance with
    Occupational Health and Safety Act as some
    buildings are already in dilapidated state.
  • Transfer Payments The shortfall in the main is
    in CBPWP. The department will therefore be
    unable to provide as many public assets as it had
    wished to provide. A number of potential
    temporary jobs opportunities have therefore been
    lost.

35
Conclusion contd
  • In conclusion, the Department wishes to highlight
    the positive impact and achievements that its
    programmes continue to contribute to Governments
    overall objectives and priorities in areas of
  • - Employment creation
  • Black economic empowerment
  • Infrastructure investment
  • Land reform initiatives and
  • Poverty alleviation.

36
Conclusion contd
  • The Department requests the Committee to assist
    the Department in its endeavours to solicit
    additional funding in future appropriations as
    the service delivery will be severely compromised
    due to inadequate funding.
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