3/15/12 SHRA Business Plan 2011/12

SHRA Strategic Plan 2013 - 2017

3/15/12 SHRA Business Plan 2011/12

Snapshot of Delivery for 2011/12Strategic FrameworkVision, Mission, ValuesSituational AnalysisOrganisational Development StateFunctional StructureStrategic ObjectivesTargets (APP)Financials

Snapshot of Delivery for 2011/12Strategic FrameworkVision, Mission, ValuesSituational AnalysisOrganisational Development StateFunctional StructureStrategic ObjectivesTargets (APP)Financials

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3/15/12 SHRA Business Plan 2011/12

Establishment and operationalisation of office;Approval of funding for 4 142 units (investment);Processing of 33 accreditation applications of which 14 were conditionally accredited and 4 fully accredited;Unqualified audit for 2010/11;Approval of institutional grants;Agreements signed with the NHFC and the Eastern Cape and KwaZulu Natal Provinces and NURCHA (drafts);Funding movement from two provinces (Eastern Cape and KZN);Two international visits with representative delegates and Agreements with Canada and Netherlands;6 Project launches (including 2 by the Minister of Human Settlements);Participation in Outcome 8 programme;Engaged with DHS and Treasury to improve funding streams for social housing; andEngaged local and international funders to establish a comprehensive funding regime for social housing in South Africa; andFinalising the Regulations for the Social Housing as per the SH Act.

Establishment and operationalisation of office;Approval of funding for 4 142 units (investment);Processing of 33 accreditation applications of which 14 were conditionally accredited and 4 fully accredited;Unqualified audit for 2010/11;Approval of institutional grants;Agreements signed with the NHFC and the Eastern Cape and KwaZulu Natal Provinces and NURCHA (drafts);Funding movement from two provinces (Eastern Cape and KZN);Two international visits with representative delegates and Agreements with Canada and Netherlands;6 Project launches (including 2 by the Minister of Human Settlements);Participation in Outcome 8 programme;Engaged with DHS and Treasury to improve funding streams for social housing; andEngaged local and international funders to establish a comprehensive funding regime for social housing in South Africa; andFinalising the Regulations for the Social Housing as per the SH Act.

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Strategic Framework

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Vision, Mission, Values

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Vision MissionValues

SHRA will be a world class organisation resourced by highly skilled, values- driven leaders in the industry. We will fund and facilitate funding for affordable, well designed, environmentally sustainable (energy efficient green) housing estates. We will ensure investment in communities that form new or regenerated cities, which in turn enhance social mobility and access to basic tenant needs for healthcare, education, transport and communication.

The SHRA will regulate and invest to deliver affordable rental homes and renew communities.

SHRA People… Are Switched on globally and inspired locally;Lead with courage, act with foresight;Build trust, foster relationships;Do more, with less; and Transform lives

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Situational Analysis

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Projected Annual Growth in the National Rental Market

Province 2001% Growth

2006% Growth

2011

Eastern Cape 162,924 2.86% 2.80%

Free State 111,920 3.87% 3.77%

Gauteng 654,486 7.21% 7.01%

KwaZulu Natal 344,020 5.73% 5.43%

Limpopo 53,161 5.49% 5.29%

Mpumalanga 100,642 5.23% 4.93%

Northern Cape 30,347 6.05% 5.81%

North West 128,517 3.17% 2.99%

Western Cape 232,406 4.17% 3.98%

Total 1,818,423 5.23% 5.14%

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340

182

494

663

304313

13%

19%

25%

33%

17%15%

0

200

400

600

800

<R850 [850-1500)

[R1500-R3500)

[R3500-R7500)

[R7500-R10000)

R10000+0%

10%

20%

30%

40%

Number who rent Percentage of rental market

Thou

sand

hou

seho

lds Percent of households

44% between R1500 & R7500

Situational Analysis

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Situational Analysis

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Up to 2008, 43 000 units by 33 Social Housing Institutions. The original figure was 54 000

but some units were “rent-to-buy”and sold off. In 2008, the Restructuring Capital Grant was introduced and the delivery is 10 590:-

YearNo. Entities No. Projects No. units No projects No. Entities No. provinces No. Municipalities No. Units RCG Value

2006/07 7 12 4847 4 3 2 3 1698 R 102 559 2002008/09 12 20 6422 4 2 3 3 1893 R 235 121 8102009/10 22 49 9949 9 5 4 5 1807 R 239 875 0002010/11 43 85 65000 5 4 3 4 1050 R 141 420 2302011/12 13 33 10589 5 4 4 4 1707 R 224 200 000

2011/12 2435 R 304 375 000

199 96807 27 10590 R 1 247 551 240

Calls for Proposals Approved Projects

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Situational Analysis

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Challenges:-Introduction of Co-op SectorIntroduction of Private SectorRecommendations from State of the Cities Report 2011Recommendations from National Planning Commission Report 2011

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Organisational Development State

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Current

Phase

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SHRA Council

SHRA Council

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SHRA Council Members Table 1: SHRA Council Members

Name Professions\Experience Gender

Zohra Ebrahim (Chairman) Social Housing Specialist Female

Gratitude Booysen (Deputy Chairperson) Housing Policy: SALGA Male

Maphuti Lamola Rental Housing Board: Lawyer Female

Ahmedi Vawda Town Planner Male

Sharon Trail Consultant: Habitat & Housing Finance Female

Seeng Ntsaba-Letele Gauteng Rental Tribunal: Advocate Female

Nontutuzelo Nogaga Executive Manager: Property Development Group Female

Collen Weapond Forensic Auditor and Advocate Male

Shanaaz Majiet Resigned in November 2011

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SHRA Council

SHRA Council

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Fu

nct

ion

al S

tru

ctu

re

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Council

Intervention Manager

Regulations Manager

CFO

Executive Assistant

Committees

AdministrativeAssistant

PA

KnowledgeManager

Research & Development

InvestmentManager

Corporate Services Manager

Company Secretary

CEO

HR(Outsourced)

Accountant

IT

Intern

Reception

Messenger

Supply Chain Management

Accreditation Manager

Compliance & Monitoring

Legal Officer

Senior Administrator

Relationship Manager

Information Analyst

Investment Analyst

Administrator

Pipeline Analyst

Technical Manager

GrantManager

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Strategic Objectives

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Strategic Objective Objective Statement

Strategic Objective 1 Incremental Implementation of the Social Housing Act 16 0f 2008

Further Development of SHRA footprint as a national regulator Proper Functioning of the SHRA Council Fully developed internal operational environment to support the

business including risk management and performance management Provide the platform for efficient and effective regulation and

investment programmes Development of comprehensive Rental programme and host Sub-

PMU as support for Outcome 8 and beyond Rollout of subsequent phases of SHRA Outreach programme

including agreements with relevant stakeholders No baseline

Strategic Objective 2 Efficient and effective Regulation of the Social Housing sector

Develop subordinate legislation for approval Ensure annual accreditation of qualifying entities and accessibility of

register Ensure effective compliance and monitoring of the sector Deploy interventions as per Act and Regulations where necessary Baseline : Process all applications for accreditation received

Strategic Objective 1 Efficient and effective Investment in the Sector

Ensure optimal use of Restructuring Capital Grant in the delivery of social housing units

Ensure optimal use of capacitation grant funding mechanisms to support regulation and investment programmes

Rollout private sector and co-op housing strategies

Form alliances and partnerships with local and international funders to create more adaptive funding models and leverage more finance for the sector.

Baseline: Ensure maximum number of units yielded by optimal use of RCG.

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Targets (APP)

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Strategic objective

Audited/Actual performanceEstimated

performance

2012

Medium-term targets

2009 2010 2011 2013 2014 2015 2016

1 Investment in Social Housing     1041 units 4214 units 4661 units 5429 units 5668 units 5979 units

2 Accreditation     33 entities 40 entities 45 entities 50 entities 50 entities 70 entities

3 Regulation     10 entities 20 entities 30 entities 40 entities 40 entities 50 entities

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Targets (APP)

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Programme performance indicator

Audited/Actual performanceEstimated

performance2012

Medium-term targets

2009 2010 2011 2013 2014 2015 2016

1 Number of SH units approved     1041 4142 4661 5429 5668 5979

2 Number of project feasibility grants issued       6 14 16 20 30

3 Number of Gear-up grants issued       3 15 20 25 30

4 Number of Specific Intervention grants issued       3 15 15 15 20

5 Percentage of applications processed for accreditation     100 100 100 100 100 100

6 Percentage of accredited applications       60 60 70 75 75

7 Number of Compliance Inspections       2 12 20 30 30

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Targets (APP)

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Financial Year Units Approved Institutional Grants Accredited Entities

2012/13 4 661 25 35

2013/14 5 429 30 40

2014/15 5 668 50 45

2015/16 5 979 70 50

2016/17 6 211 70

Total 27 948 245 aggregated

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Financials

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SHRA EXPENDITURE ESTIMATES

Programme AdjustedR Thousand 2009 2010 2011 2012 2013 2014 2015 2016 2017

1. Administration of SHRA 9 335 19 305 21 096 22 151 23 480 24 889 26 382 2. Capital Grants:Investment in Social Housing Sector 177 416 192 243 582 661 678 693 708 614 746 879 787 211 3. Institutional Grants: 22 617 Project Feasibility 19 422 22 623 23 620 24 895 26 240 4. Regulations - Institutional Grants 11 308 - SHI Start Gear Up 9 711 11 312 11 810 12 448 13 120 - Specific Intervention 12 948 15 082 15 747 16 597 17 494 - Applications for Accreditation 6 474 7 541 7 873 8 298 8 746 - Accredited delivery agents 3 237 3 771 3 937 4 150 4 374 - Inspection audits 12 948 15 082 15 747 16 597 17 494

Subtotal 186 751 245 473 668 497 776 255 810 828 854 754 901 060

Direct Charges to National Revenue Fund

Total 186 751 245 473 668 497 776 255 810 828 854 754 901 060

Audited Outcomes Medium Term Expenditure

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Financials

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Expenses FY2010/11 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2016/17

Current expense 7 437 20 883 21 096 22 151 23 480 24 889 26 382

Compensation of employees 757 10 720 12 200 12 847 13 617 14 353 15 214

Salary & Wages 745 10 332 11 700 12 320 13 059 13 765 14 590

Social Contributions (employer contributions only) 12 388 500 527 558 588 624

Use of goods and services 6 680 10 163 8 896 9 304 9 862 10 536 11 168

Administrative fees - - - - - -

Advertising 668 498 243 284 299 317 300

Agency and support / outsourced services 706 233 577 620 653 693 734

Assets less than R5 000 - - - - - - -

Audit costs - 400 450 480 506 536 568

Bank Charges 13 68 79 82 96 102 108

Board Costs 953 600 630 640 675 700 742

Bursaries (employees) - - - - - - -

Catering: internal activities 24 180 200 210 221 235 249

Communication 41 450 626 680 763 809 857

Computer services 184 650 642 674 710 753 798

Consultants 3 331 2 200 1 664 1 603 1 690 1 850 2 197

Contractors - - - - - - -

Entertainment - 40 80 96 101 107 114

Lease payments - 1 200 1 310 1 415 1 491 1 581 1 676

Legal fees - 385 420 466 491 521 552

Non life insurance - 126 160 168 177 188 199

Printing and Publication 76 338 356 373 393 417 442

Property payments - - - - -

Repairs and maintenance 5 30 31 34 36 38 40

Research and development - 230 350 380 401 425 250

Training and staff development 36 145 180 195 206 218 231

Travel and subsistence 524 2 000 800 800 843 932 988

Utilities 103 10 12 14 15 16 17

Venues and facilities 16 380 86 90 95 101 107

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Financials

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STATEMENT OF FINANCIAL PERFORMANCER 000 R 000 R 000 R 000 R 000 R 000

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17Revenue

Grants received:NDHS - 21 096 22 151 23 480 24 889 26 382 Realisation of Deferred Transfers 117 627 414 138 732 769 780 708 827 550 877 204 Interest 5 535 - - - - - Other Income 380 - - - - -

Total Revenue 123 542 435 234 754 920 804 188 852 439 903 586

Expenditure

Compensation of Employees 10 720 12 200 12 847 13 617 14 352 15 127 ▪ Salaries 10 332 11 700 12 320 13 059 13 764 14 507 ▪ Social Contributions 388 500 527 558 588 620 Depreciation 510 290 290 290 306 322 Capital Restructuring Grants 94 720 384 893 704 071 750 518 795 549 843 282 Capacity Grants 7 304 27 485 26 911 28 470 30 178 31 989 Travelling costs 2 000 800 800 800 843 889

115 254 425 668 744 919 793 695 841 228 891 609 Other Administration Expenses 8 288 9 566 10 001 10 493 11 211 11 976

Total Expenditure 123 542 435 234 754 920 804 188 852 439 903 585

Surplus for the year - - - - (0) 0

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Financials

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STATEMENT OF FINANCIAL POSITIONR 000 R 000 R 000 R 000 R 000 R 000

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17Assets

Current Assets Trade and other receivables 251 251 251 251 251 251 Cash and cash equivalents 260 827 498 124 521 709 528 954 560 664 594 277

261 078 498 375 521 960 529 205 560 915 594 528

Non-Current Assets Property, plant and equipment 4 649 5 766 6 476 6 936 7 352 7 793

4 649 5 766 6 476 6 936 7 352 7 793

Total Assets 265 727 504 141 528 436 536 141 568 267 602 321

Liabilities

Current Liabilities Deferred Government Grant 255 413 488 676 510 010 516 651 547 650 580 509 Trade and other payables 2 119 1 749 2 749 2 914 3 089 3 274

257 532 490 425 512 759 519 565 550 739 583 783

Total Liabilities 257 532 490 425 512 759 519 565 550 739 583 783

Net AssetsAccumulated surplus 8 195 13 716 15 677 16 576 17 528 18 538

- - - - - - ok ok ok ok ok ok

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Financials

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CASH FLOW STATEMENTR 000 R 000 R 000 R 000 R 000 R 000

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

Cash flow from operating activites

Operating surplus/(deficit) before changes in working capital (188 617) (438 006) (730 318) (778 149) (800 808) (848 856)

Changes in working capital (367) 370 1 000 165 175 185

Net cash flows from operating activities (188 984) (437 636) (729 318) (777 984) (800 633) (848 671)

Cash flow from investing activites

Purchase of Property, plant and equipment (3 900) (1 713) (1 200) (940) (996) (1 056)

Cash flow from financing activites

Deferred Income 324 490 676 646 754 103 786 169 833 339 883 339

Net increase/(decrease) in cash equivalents 131 606 237 297 23 585 7 245 31 710 33 612

Cash and cash equivalents at beginning of year 129 221 260 827 498 124 521 709 528 954 560 665

Cash and cash equivalents at end of year 260 827 498 124 521 709 528 954 560 664 594 277

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Financials

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Financial YearOperational Budget Capital Budget Total

(Rm) (Rm) (Rm)

2012/13 21 096 647 401 668 497

2013/14 22 151 754 104 776 255

2014/15 23 480 787 348 810 828

2015/16 24 889 829 865 854 754

2016/17 26 382 874 678 901 060

Total 117 998 3 893 396 4 011 394

Summary

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Q & A

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