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ESTATE AGENTS AFFAIRS BOARD

SCHEDULE 3A PUBLIC ENTITY OF THE DEPARTMENT OF HUMAN SETTLEMENTS

ANNUAL PERFORMANCE PLAN

2019/20 FINANCIAL YEAR

FINAL DRAFT

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Official Sign-Off

It is hereby certified that this Annual Performance Plan was developed by the Accounting

Authority with input received from the Executive Management of the Estate Agency

Affairs Board.

The Annual Performance Plan (APP) has been developed in line with the current

Strategic Plan of the Estate Agency Affairs Board (EAAB) and accurately reflects the

performance targets which the EAAB will endeavour to achieve, given the resources

made available in the budget for the 2019 – 2020 year.

Signature:

__________________________

Chief Financial Officer

Signature:

__________________________

Chief Risk Officer

Signature:

___________________________

Chief Executive Officer

Signature:

___________________________

Chairperson of the Board

APPROVED BY:

Signature:

___________________________

Minister of Department of Human Settlements

Honourable N C Mfeketo, MP

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Foreword by the Accounting Authority

It is with great pleasure that the Estate Agency Affairs Board (“EAAB”), as the Accounting

Authority, presents its Annual Performance Plan for the period 2019/20 to the Executive

Authority, the Honorable Minister of Human Settlements, Nomaindiya Mfeketo The

drafting of the Annual Performance Plan has been guided by both the EAAB Strategic

Plan and the Department of Human Settlements Medium-Term Strategic Framework

(“MTSF”).

The Board of the EAAB, together with its Executive Committee and staff, reaffirms its

commitment to the progressive transformation of the estate agency sector to reflect the

demographics of a democratic South Africa and to the inculcation of the highest

standards of excellence in pursuit of its constitutional and statutory mandate to regulate

the estate agency sector in the public interest for the benefit of property consumers and

estate agents.

Two of the critical challenges posing a serious risk to the financial sustainability of the

EAAB that have been identified are:

the increasing number of suspicious, and potentially fraudulent, claims received by the

Estate Agents Fidelity Fund; and

Rampant money laundering using the real estate sector as a mechanism for this

purpose.

The EAAB is required, to this end, to ensure that all qualifying estate agents, on receipt

of compliant applications, are timeously issued with valid fidelity fund certificates to

enable them legally to render estate agency services and so mitigate these risks.

The EAAB continues, in cooperation with its manifold stakeholders, to strive to build a

professional estate agency sector. Doing so ensures the sustainable and progressive

development of both aspiring and existing estate agents and especially those from

historically disadvantaged groups. The EAAB wishes to assure the Executive Authority

that it is committed to full observance of the precepts of good corporate governance, not

only in strict compliance with the provisions of the Public Finance Management Act, 1 of

1999, but also any other applicable legislation and relevant codes such as the King IV

Code of Practice for Good Corporate Governance and the Codes of Good Practice.

The EAAB, moreover, has fully committed itself to mutual and harmonious cooperation

with other statutory regulators, the private property industry and civil society formations.

. Official sign-off It is hereby certified that this first draft Annual Performance Plan was developed by the Board of the EAAB and prepared in accordance with the current Strategic Plan of the EAAB. The first draft Annual Performance Plan accurately reflects the performance targets which the EAAB will strive to achieve, given the inherent constraint of available resources that have been provided for in the EAAB budget for the 2019/2020 financial year.

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TABLE OF CONTENTS

PART A: STRATEGIC OVERVIEW 5

1. UPDATED SITUATIONAL ANALYSIS 5

1.1. PERFORMANCE DELIVERY ENVIRONMENT 5 1.2. ORGANISATIONAL ENVIRONMENT (SWOT) 7 1.3. REVISIONS TO LEGISLATIVE AND OTHER MANDATES 11 1.4. PENDING COURT CASES 11 1.5. STRATEGIC OUTCOME ORIENTATED GOALS OF EAAB 14 1.6. ORGANISATIONAL STRUCTURE 15 1.7. EAAB RESOURCE PLAN 15 1.7.1 REVENUE AND EXPENDITURE ESTIMATES 19 1.7.2 OPERATIONAL EXPENDITURE PER PROGRAMME 27 1.7.3 CASHFLOW STATEMENT 31 1.7.4 STATEMENT OF FINANCIAL POSITION 34 1.7.5 STATEMENT OF FINANCIAL PERFORMANCE ERROR! BOOKMARK NOT DEFINED.

PART B: PROGRAMMES PLANS 35

2. PROGRAMME 1: FINANCE AND ADMINISTRATION 45

3. PROGRAMME 2: COMPLIANCE 50

4. PROGRAMME 3: EDUCATION AND TRAINING 55

5. PROGRAMME 4: TRANSFORMATION 60

6. PROGRAMME 5: FIDELITY FUND 67

7. PROGRAMME 6: CONRIBUTION TO MEDIUM TERM STRATEGIC FRAMEWORK70

PART C: LINKS TO OTHER PLANS 73

1.1. DEPARTMENT OF HUMAN SETTLEMENT HOUSING INITIATIVES 73 1.2. TITLE RESTORATION PROJECT 73 1.3. TRANSACTIONAL SUPPORT INITIATIVE 73

ANNEXURE A - MATERIALITY FRAMEWORK 66

ANNEXURE B - STRATEGIC RISK REGISTER 68

ANNEXURE C - TECHNICAL STANDARDS 79

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PART A: STRATEGIC OVERVIEW

1. UPDATED SITUATIONAL ANALYSIS

The Board has conducted a rigorous annual strategic review and a number of

factors (Internal and external) have demanded adjustments to the current plan.

These are reflected in this 2019/20 Strategic Plan.

The adjustments in this Plan, also seeks to accommodate recommendations from

the most recent audit findings and management letter.

1.1. Performance Delivery Environment

The EAAB has once again taken account of its operations and, more specifically,

how the same would impact and influence its business for the 2019/20 year.

The Board has used the PESTELD Analysis to evaluate the key environmental

factors and contributors that impact its external performance delivery.

The consolidated inputs are, therefore, reflected below.

Variable Considerations for EAAB

PO

LIT

ICA

L

Key interventions raised by Minister (2016), which relates to Estate Agency Affairs Board:

“To build 1, 5 million houses in partnership with the private sector, all stakeholders

and communities, over the next five years.

The National Home Builders Registration Council (NHBRC) will establish and officially

open a Training Academy in partnership with the Gordon Institute of Business

Science. This will focus on up-skilling 100 women and the youth. (In our discussions

with the EAAB,) they committed to train young, black candidate Estate Agents to

revitalise the industry. The Academy established by the NHBRC will incorporate a

training course on Estate Agents and other property practitioners.”

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ECO

NO

MIC

Slow rate of economic growth.

CPI inflation “shock” at this stage appears remote in 2017. It is expected to average 6% over 12 month period and decline to 4.7% by 2020.

Reduction in disposal income – will result in smaller-sized homes and smaller average stand sizes being more sought after.

Severe drought that has affected the country, political challenges and high

unemployment, international financial difficulties.

The projected growth to stimulate employment, house prices and property market has

not materialized.

The new Spatial Planning and Land Use Management Act. This will unlock significant

further private sector development potential across our cities, focused on strategic

corridors.

Lower and middle-income areas will outperform the high income/price end of the

market.

Expectation that the primary residential demand-dominated city markets to begin to

outperform the holiday town markets.

Less economically-diversified rural towns may also be at greater risk than the major metros, notably Mining and Manufacturing.

SOC

IAL

Racist remarks by various estate agents resulted in collaboration with Human Rights Commission - an enquiry into racism by estate agents in South Africa.

Estate agents engaging or participating in racist behavior may render themselves guilty of a contravention of regulations 2.1 and/or 2.6 of the Code of Conduct for Estate Agents (“the Code of Conduct”).

Increased levels of enforcement to eliminate racism and discrimination within the sector.

Introduction of appropriate education and sensitivity training for estate agency practitioners and consumers alike though the Continuing Professional Development (CPD) programme

TEC

HN

OLO

GIC

AL

The Estate Agency sector has embraced the use of technology in respect of transacting through use of cell phones and web page advertising.

Estate Agents are increasingly using technological devises to interact with the Estate Agency Affairs Board.

Application processes within the EAAB are now performed on-line.

Processing of transactions is performed through EAAB technological infrastructures.

The Estate Agent is able to track the progress of applications and complaints through web access.

Increased use of digital platforms and mobile applications by consumers, drives the need for EAAB to enhance its digital strategies.

Scourge in on-line related crime – fraud, identity theft, etc.

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LEG

AL

Since 27 February 2016, the Board’s inspection powers have been severely

circumscribed -

Impact of the impending Property Sector Bill on the levels of compliance

ET

HIC

AL

Increase in white collar crime – collusion

On-line fraud – identity theft

Risk of illegal operational practices

Failure by estate agents to pay interest earned on trust monies into the Fidelity Fund

DE

MO

-

GR

AP

HIC

S

Participation of historically disadvantaged groups in the real estate sector remains a

challenge.

1.2. Organisational environment (SWOT)

STRENGTHS WEAKNESSES

Fidelity Fund

Well-managed investments.

Turnaround time of approved claims.

Governance

Strong governance structure at Board level.

Management

Competent and committed management with

experience.

Competent disciplinary and claims committee

members.

Staffing

Young and energetic staff.

Staff is utilizing the in-house study support

benefits.

Internal processes

Effective internal processes

Basic systems in place

Professional Body status

Stakeholder Relations

Sound relationships with the SSETA, SAQA, the

Mandate and legislation

Insufficient capacity to comply with regulatory

mandate.

Outdated legislation, which does not sufficiently

empower EAAB enforcement mandate.

Fidelity Fund

Slow approval process impacts processing

speed resulting in increased interest claims.

Governance

Insufficient internal governance structures - vis-

à-vis policies, procedures and risk-orientation.

Management

High vacancy rate and secondments reduces

management capacity.

Staffing

High staff turnover erodes the experience curve

Lack of succession planning to ensure business

continuity.

Insufficient training in current legislative

frameworks and processes.

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STRENGTHS WEAKNESSES

QCTO and sector representative organisations

through the Multi Stakeholder Group

Internal processes

Poor ratio of recoveries to claims approved and

paid.

Lack of customer centered focus

Slow responses to customer queries

Lack of systems integration negatively impact

service delivery

Reporting

Insufficient reporting, monitoring and control

structures/ systems

Unresponsive institutional culture.

IT system and outsourcing

Low functionality and outdated current IT

system (e.g. SAP) hinder EAAB’s ability to stay

relevant

Outsourcing of services and infrastructure

resulting in loss of control

High level of IT process downtime.

Infrastructure (hardware and software) is not

capable to support the effective implementation

of the EAAB mandate

Inadequate HR Management system (Software

System)

Performance Management

No Performance culture - performance

management system does not translate to

effective organisational performance.

Work repetition/ duplication and high workload

is common

Budget and Finances

Inadequate budget to deliver the mandate

Understated revenue due to inadequate

systems

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A. External Environment

OPPORTUNITIES THREATS Legislative aspects and compliance

Build partnerships that improve the ability of EAAB

to ensure compliance to the Act.

Property Practitioners Bill will lead to a better and

modern regulatory environment

Fidelity Fund

Better investment opportunities to grow the

Fidelity Fund

Transformation

Devise strategies for economic inclusion of

previously disadvantaged persons in the property

sector.

Improving and strengthening collaboration with

sector and public entities.

Department of Human Settlement in resolution of

title deeds backlog and issuing of new title deeds,

leads to increased secondary market and more

estate agents emanating from previously

disadvantaged groups

Increasing sustaining mechanisms for black

agencies to continue operating can enhance

transformation

Education of potential Estate Agents of the sector

as a career of choice and as new business owners

Using the PPB to enforce transformation and

compliance

Collaboration with tertiary institutions to source

candidate estate agents

Technology

Increase EAAB outreach through media and other

advanced digital communication platforms.

Create service standards to improve industry

performance

Improving general image of the EAAB through

optimized partnerships with the industry/ sector

Monitoring and meeting increasing and evolving

Mandate

Expanding mandate outside of legislation and

without securing funding, leads to unauthorized

expenditure

Compliance and legislation

Non-compliance by estate agents jeopardizes

EAAB consumer protection mandate

An increase in the number of unregistered

estate agents could erode the integrity of the

property sales industry

Fidelity Fund

Increased risks of potential money laundering,

fraud and theft will lead to higher claims from

Fidelity Fund.

Failure by estate agents to bank trust monies

into the trust account can result in claims

lodged against the Fidelity Fund, affecting the

Fund’s performance.

Unlimited claims arising from consumers either

in size or number may deplete the Fidelity Fund

An increase in uninformed / unempowered

property consumers and consequent escalation

in the number of complaints and claims may

negatively impact the Board’s resources and

the Fund’s sustainability.

Illegal operators are a threat to the stability and

sustainability of the Fund.

Lack of understanding of law enforcement

agencies of the EEAB legislation.

Technology

Use of digital/ on-line tools and platforms by

estate agents to conduct their business, creates

opportunity for identity theft.

Sales transactions

A tightening credit market may lead to a

reduction in the number of sales transactions,

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OPPORTUNITIES THREATS stakeholder needs.

Utilisation of new technological innovations and

developments.

Monitoring and adapting to changing socio,

political and legal landscapes;

Utilising QCTO framework for developing

occupational qualifications.

Managing stakeholder perceptions. Consumer Awareness and understanding

Building consumer understanding of the property

transactions to better protect the consumer.

affecting the sustainability and viability of estate

agency enterprises.

More sectional title properties on the market

could result in increased misappropriation of

those properties by sectional title managers

based on the trends.

Negative economic climate impacting on the

growth and profitability of estate agency

enterprises.

Rapidly increasing costs of services and

necessary IT interventions.

Failing to identify and accommodate changing

stakeholder educational needs; ever changing

skills development and qualification

dispensation and framework;

Lack of appropriate regulation of Property

Developers especially when they perform

Estate Agent functions.

Customer Service

Industry perception of slow turnaround times

and responses to customer queries.

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1.3. Revisions to Legislative and Other Mandates

The following constitutional court decision had a direct impact on the validity of

Section 32A of the Estate Agency Affairs Act No.112 of 1976 (the Act), as the

court held that the inspection powers conferred on the Board by Section 32A was

unconstitutional. The constitutional invalidity was suspended until 26 February

2016 to enable an amendment to the Act to bring into line with the constitution.

Since 27 February 2016, the Board’s inspection powers have been severely

circumscribed and this has compromised the Board’s legal powers to enforce

regulatory mechanisms and to prevent money-laundering and corruption in the

property industry. It is envisaged that Property Practitioner’s Bill will close this

loophole.

In the meantime, the EAAB will implement a wide range of interim measures to

monitor compliance - such as introduction of online self-assessments and

evaluations, strengthening of the EAAB ‘enforcement capacity to enforce the

provision of the Act and strengthening audit compliance process. The EAAB has

further established strategic relationships with other law enforcement agencies

such as SAPS, FIC, IRBA, and NPA to assist with investigation criminal offence

as well as subsequent prosecution where applicable.

1.4. Pending court cases

Plaintiff/Applicant Case details Potential Liability Status HALIMA TAYLOR PROPERTIES CC

The EAAB has been joined as a third party in these proceedings, by the defendant who is being sued for commission relating to the sale of the EAAB offices in Sandton.

R500,000 loss Case is pending in court

DURRANVALE TRADE & ONV (PTY) LTD

Plaintiff is suing the EAAB for loss of income. EAAB

R750.000.00 Cases pending in court.

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withheld his certificate to trade based on the fact that the plaintiff had a prior discipliniary record. He is therefore issuing EAAB to the sum of R44, 819, 536-90

JACOBUS STEPHANUS KOTZE

EAAB cited as an interested party. The plaintiff is suing the defendant for failing to pay commission.

R500 000.00 Cases pending in court.

PASCO RISK MANAGEMENT (PTY) LTD

The Plaintiff is claiming a payment of the sum of R490 109.38 plus cost. The Plaintiff claims that security services were performed on behalf of an Executive manager and this arrangement was agreed upon by EAAB. Matter is being defended

R600 000.00 Cases pending in court.

ATLANTIC BEACH HOMEOWNERS ASSOCIATION NPC

An application to prevent the EAAB from instituting internal disciplinary hearing. The applicant claimed that EAAB had no jurisdiction to institute internal discipliniary hearing as they were not Estate Agents in terms of the Act.(Although they sharing commission with Estate Agents) The EAAB successfully defended the matter and was awarded costs. The applicant has

R600,000.00 Cases pending in court

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lodged an appeal against the EAAB.

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1.5. Strategic Outcome Orientated Goals of EAAB

The Board confirmed the strategic goals, but the general view was that the goal

statements require revision to be more relevant to the current performance

delivery environment and understanding of the mandate in that context.

The following table reflects the updated goal statements.

No Strategic Outcome

Oriented Goal

Goal Statement

1 Compliant Estate Agency

Sector

To implement speedy cost-effective and transparent measures

to ensure compliance by the estate agencies and agents to

relevant legislation.

2 Consumers are aware and

understand all forms of

property transactions.

To ensure that consumers are made aware of property

transactions through the utilisation of appropriate multimedia,

advertising and marketing platforms.

3 Sustainable Fidelity Fund

To ensure that the Fidelity Fund is efficiently and effectively

managed and controlled.

4 Professional and capacitated

real estate sector

To ensure that all registered estate agents are fully qualified in

accordance with applicable legislative requirements.

5 Transformed real estate

sector

To develop and implement programmes to accelerate the

achievement of at least 30% participation by persons from the

historically disadvantaged backgrounds, in the profession of

estate agents.

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1.6. Organisational Structure

The Board continued the process of stabilizing the organisation by engaging in

the alignment of the approved functional structure.

This exercise will culminate in a structure that will serve the strategic focus and

deliver the mandate of the EAAB. It will be sufficiently agile, to accommodate the

future demands of the Board.

1.7. EAAB Resource Plan

The organizational structure is prepared in respect of functions which would

enable Estate Agency Affairs Board to achieve their Strategic Goals. The key

functions of the Estate Agency Affairs Board should be the following:

Board (Accounting Authority)

Chief Executive office

Chief Financial office

Corporate services

Education and Training

Transformation

Compliance and Enforcement

Board (Accounting Authority)

The Board (Accounting Authority) serves are the oversight body of EAAB and

report directly to the Minister of Human settlement. (Executive Authority) The

Board is supported by the Complany Secretary in its performance of its duties.

Chief Executive Office

The Chief Executive office is responsible for the following functions:

Strategic planning and monitoring.

Stakeholder interaction and communications.

Overall management of the organisation.

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The following functions Report to the Board through the Audit and Risk

Committee. These functions report administratively to the Chief Executive

Office

Risk Management

Internal audit

The Chief Finance office is responsible for the following functions:

Administration of the Fidelity Fund.

Financial Management.

Supply chain management

Management of Information Technology.

Corporate service is responsible for the following functions:

Human Resource Management

Marketing and publications

Facilities management

Internal Legal services

Marketing and Communications

Customer Relations Management

Education and Training is responsible for the following functions:

Estate Agents Education and Training.

Professional Body

Establishing a Research and knowledge centre, the research and knowledge unit

will also consist of transactional support.

Transformation is responsible for the following functions:

Drive Transformation both internally at EAAB and externally to ensure compliance

with applicable legislation such as Employment Equity Act and Broad-Based

Black Economic Empowerment and Property sector charter.

Ensure economic inclusion of the previously disadvantaged individuals (PDI) in

the property sector.

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Engage with Public works department to ensure PDI participate in the property

business.

Establish a Real Estate Incubator for small struggling Estate Agencies,

rehabilitation of non-compliant Estate Agencies and empowerment of youth,

woman and persons with disabilities with focus on previously disadvantaged

individuals.

Promote Consumer Education and awareness and protection by engaging other

stakeholders in the property value chain like finance providers.

Cross functional interface with other section to ensure that transformational

agenda is persued, i.e. reviewing models and initiatives.

Compliance and enforcement is responsible for the following functions:

Attend to complaints received from property consumers..

disciplinary processes involving estate agents;

Adjudicate claims lodged against the Fidelity Fund;

Ensure compliance in relation to the submission of statutory auditor’s reports

by estate agency enterprises;

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1.7.1 Revenue and Expenditure estimates

THE ESTATE AGENCY AFFAIRS BOARD PROJECTED INCOME AND EXPENDITURE BUDGET FOR THE YEAR ENDING 31 MARCH 2020

2017/2018 2017/2018 2018/2019 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Budget Audited Outcome Approved

Budget Forecast Budget Forecast Forecast Forecast

Turnover 1 146 048 985 123 193 515 151 375 048 139 120 279 169 223 290 181 068 921 193 743 745 207 122 051 FFC Renewals 1.

1. 26 539 470 20 357 699 38 326 408 33 366 685 44 096 789 47 183 564 50 486 414 54 020 463

Principals 10 775 160 7 470 375 14 707 912 11 260 080 16 914 099 18 098 086 19 364 952 20 720 498 Full Status 6 878 421 6 710 407 10 658 430 9 973 050 12 257 195 13 115 198 14 033 262 15 015 590 Intern Estate Agents 7 580 982 5 302 243 11 972 526 11 257 363 13 768 405 14 732 193 15 763 447 16 866 888 Attorneys 104 907 97 430 107 100 113 322 144 585 154 706 165 535 177 123 Firms 1 200 000 766 444 880 440 756 870 1 012 506 1 083 381 1 159 218 1 240 363 Non-Executive

Director 10 800 6 000 29 224 31 269 33 458 35 800

New Registrations 1.2

3 677 150 3 425 140 3 794 027 3 895 718 5 344 316 5 718 418 6 118 707 6 363 260

Principals 24 297 357 530 196 311 267 000 214 935 229 980 246 079 263 305 Non-Principal 2 531 602 2 838 586 3 285 716 3 259 226 3 835 905 4 104 418 4 391 727 4 699 148 Status Change 427 051 221 905 312 000 250 492 513 000 548 910 587 334 628 447 Firms 694 200 - - 89 000 630 476 674 609 721 832 772 360 Non-Executive

Director - 7 120 - 30 000 150 000 160 500 171 735

Examinations 1.3

47 135 900 34 113 860 36 812 300 27 739 240 43 007 086 46 017 582 49 238 813 52 685 530

Examination Fees 1 460 000 1 543 760 1 605 000 1 563 585 2 106 320 2 253 763 2 411 526 2 580 333 Sales -Study Guides 1 212 800 600 300 1 342 000 1 075 415 1 493 750 1 598 313 1 710 194 1 829 908 Over 60's exemptions 388 000 126 180 213 400 334 400 373 450 399 592 427 563 457 492 CPD Fees 42 929 500 31 091 400 32 500 000 23 708 000 37 500 000 40 125 000 42 933 750 45 939 113

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Equivalency exemptions

912 000 746 630 1 003 200 976 760 1 254 000 1 341 780 1 435 705 1 536 204

Appeals on Examination Results

44 000 90 48 500 25 230 97 816 104 663 111 990 119 829

Non- executive director exemption

150 000 5 500 82 500 41 250 137 500 147 125 157 424 168 443

Disability and Impairment exemption

39 600 - 17 700 14 600 44 250 47 348 50 662 54 208

Interest Income 1.4.

2 012 034 608 422 850 000 735 192 856 097 916 024 980 146 1 048 756

Interest on Investments

1 969 877 583 522 800 000 698 571 706 097 755 524 808 411 865 000

Interest Other 42 157 24 901 50 000 36 621 150 000 160 500 171 735 183 756

Other Income 1.5.

66 684 431 64 688 393 71 592 313 73 383 444 75 919 002 81 233 332 86 919 665 93 004 042

Administration Fees 53 190 948 52 463 904 56 042 021 62 033 348 58 488 834 62 583 053 66 963 866 71 651 337 Fines 3 750 000 1 914 600 6 500 000 4 343 101 7 150 000 7 650 500 8 186 035 8 759 057 Penalties 5 000 000 4 293 700 4 325 000 2 180 140 4 757 500 5 090 525 5 446 862 5 828 142 Delivery charges 40 000 23 395 40 000 29 670 44 000 47 080 50 376 53 902 Legal document

charges 12 000 8 885 12 000 14 330 13 200 14 124 15 113 16 171

Rental Income 2 241 483 2 333 016 2 423 292 2 427 652 2 670 468 2 857 401 3 057 419 3 271 438 Advertising Fees 50 000 38 740 50 000 49 000 55 000 58 850 62 970 67 377 Duplicate and Amendments

- FFC 1 200 000 1 285 115 1 200 000 1 547 455 1 440 000 1 540 800 1 648 656 1 764 062

Prior year write offs 290 837 - - - - - - Sundry income 1 200 000 2 036 201 1 000 000 758 748 1 300 000 1 391 000 1 488 370 1 592 556

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Operating costs 2 140 504 155 122 536 676 138 293 793 130 996 040 157 034 407 167 926 836 179 689 436 191 110 385 Admin expense 2.1 44 857 218 38 886 291 43 284 390 38 371 549 45 416 653 48 488 819 51 883 036 54 349 043

Venue Hire 4 000 000 2 924 343 2 057 000 2 036 694 2 188 000 2 341 160 2 505 041 2 680 394 COS - NQF 4 &

5 600 000 557 230 500 000 687 281 500 000 535 000 572 450 612 522

Invigilators' and Markers Fees

244 000 36 967 370 000 199 474 370 000 395 900 423 613 453 266

Venues, Conferences and Breakaways

356 800 106 583 100 000 124 982 120 000 128 400 137 388 147 005

Staff Training and development

922 419 435 892 650 000 431 399 700 000 749 000 801 430 857 530

Corporate Social Investments

120 000 - 100 000 50 000 - - - -

Bursaries 1 488 000 1 490 280 1 650 000 1 250 000 1 860 000 1 990 200 2 129 514 2 278 580 Software

License 1 390 000 1 259 743 1 390 000 1 062 881 1 390 000 1 487 300 1 591 411 1 702 810

Hardware Maintenance

550 000 - 450 000 225 000 450 000 481 500 515 205 551 269

Software Maintenance

700 000 283 843 500 000 317 964 500 000 535 000 572 450 612 522

Publication and Communication

640 000 342 998 670 000 336 180 500 000 535 000 572 450 612 522

Insurance 821 024 667 404 929 341 773 029 838 000 896 660 959 426 1 026 586 Assets

expensed - 4 721 20 000 20 000 21 400 22 898 -

Bad debts written off

131 512 - - - - - -

Provision for doubtful debts

- (676 961)

1 356 376 1 257 257 881 644 943 360 1 009 395 -

Assets Written Off

- 68 316 - 11 348 - - - -

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Impairment Loss

- 96 547 50 000 25 000 50 000 53 500 57 245 -

Interest and penalties

- 139 873

Postages 552 859 326 186 650 000 483 366 650 000 695 500 744 185 796 278 Stationery and

Printing 1 400 000 1 706 673 1 700 000 1 207 333 1 500 000 1 605 000 1 717 350 1 837 565

Travelling expenses

2 648 008 2 741 466 2 571 437 1 612 147 2 971 747 3 179 770 3 402 353 3 640 518

Bank Charge 932 680 588 596 795 680 619 160 880 000 941 600 1 007 512 1 078 038 Auditors Remuneration -

Current Year 1 200 000 1 896 834 1 500 000 1 700 000 2 090 000 2 236 300 2 392 841 2 560 340

Internal Audit Fees

500 000 - 500 000 750 000 1 050 000 1 123 500 1 202 145 1 286 295

Telephone and Telex

2 807 508 4 720 323 2 912 160 4 332 412 2 764 355 2 957 860 3 164 910 3 386 454

Photo-copier charges

289 018 230 150 300 000 464 721 500 000 535 000 572 450 612 522

Entertainment 143 000 92 966 - - - - - - Staff welfare - 210 000 224 700 240 429 257 259 Catering and

Refreshments 642 090 558 014 450 000 398 354 505 778 541 182 579 065 619 600

Consumables - - - 3 928 42 000 44 940 48 086 51 452 Nestle

Equipment Rentals

7 274 - 7 856 - - - - -

Garden and Plant Maintenance

214 000 195 124 235 400 219 687 240 000 256 800 274 776 294 010

Subscriptions 292 740 229 522 410 883 332 758 437 943 468 599 501 401 536 499 Sundry

expenses - 60 930 - - - - - -

Office Cleaning 600 000 282 288 72 000 85 967 300 000 321 000 343 470 367 513 Rates and Taxes Office

Building 1 200 000 1 627 517 1 260 000 1 200 501 1 680 000 1 797 600 1 923 432 2 058 072

Repairs and Maintenance Building

1 000 000 889 780 2 500 000 2 051 102 2 500 000 2 675 000 2 862 250 3 062 608

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Security Costs 548 493 609 116 802 500 709 672 802 500 858 675 918 782 983 097 Water and

Electricity 789 084 857 744 1 287 210 1 247 440 1 428 803 1 528 819 1 635 837 1 750 345

Licencing and Insurance

2 400 3 387 2 568 2 495 3 500 3 745 4 007 4 288

Repairs and Maintenance Vehicle

69 796 57 067 71 686 57 399 85 000 90 950 97 317 104 129

Repairs & Maintenance Furniture & Equipment

71 000 89 086 75 970 39 132 120 000 128 400 137 388 147 005

Promotion and Marketing

600 000 205 842 400 000 240 165 150 000 160 500 171 735 183 756

Advertising 200 000 - - - 250 000 267 500 286 225 306 261 Relocation

Costs - - 200 000 55 000 100 000

Consultants Fees

2 964 156 3 195 917 1 995 587 1 659 445 2 282 560 2 442 339 2 613 303 2 796 234

Corporate Gifts 450 000 215 200 000 178 739 250 000 267 500 286 225 306 261 Call Center 3 820 149 3 201 604 4 240 366 3 501 668 3 500 000 3 745 000 4 007 150 4 287 651 CPD Expenses 3 000 000 2 814 629 1 420 000 1 685 138 1 670 000 1 786 900 1 911 983 2 045 822 Depreciation - Office

furniture 287 120 201 340 237 120 252 890 334 230 357 627 382 660 409 447

Depreciation - Office Equipment

1 039 543 314 979 822 876 518 572 853 879 913 651 977 606 1 046 039

Depreciation - Computer equipment

1 074 871 750 648 1 441 538 1 164 175 1 702 729 1 821 920 1 949 454 2 085 916

Depreciation - Motor Vehicles

212 672 102 303 102 672 102 589 102 672 109 859 117 549 125 778

Depreciation - Buildings

1 611 784 1 571 553 1 631 034 1 468 563 1 616 104 1 729 231 1 850 277 1 979 797

Amortisation - Software

1 526 410 616 215 1 366 810 907 870 1 278 841 1 368 360 1 464 145 1 566 635

Amortisation - Intellectual Property

196 367 - 196 367 98 184 196 367 210 113 224 821 240 558

Depreciation - Leasehold Improvements

131 954 418 862 131 954 92 620 - - - -

24

Other operating

expense 1 783 426 1 287 018 3 114 980 2 092 390 3 540 458 3 795 310 4 068 703 4 362 007

Disciplinary costs

1 008 065 531 521 1 200 000 973 506 1 500 000 1 605 000 1 717 350 1 837 565

Legal Costs 300 000 297 906 1 350 000 566 853 1 550 000 1 658 500 1 774 595 1 898 817 Rental - Leased

Building 246 381 272 630 336 000 334 712 234 000 257 400 283 140 311 454

Recruitment and Selection

228 980 184 961 228 980 217 319 256 458 274 410 293 618 314 172



Staff costs 2.

2. 90 983 945 79 447 388 88 862 241 87 441 983 104 789 952 112 125 249 119 974 016 128 372 197

Salaries and Wages 59 126 430 55 555 687 61 213 027 59 106 333 70 635 911 75 580 424 80 871 054 86 532 028 Overtime Expenses 195 000 262 533 278 400 283 301 287 388 307 505 329 031 352 063 13th Cheque 2 896 759 3 758 014 2 329 640 2 905 785 5 197 238 5 561 045 5 950 318 6 366 840 Performance

awards 4 672 934 7 786 558 3 655 954 4 672 934 4 342 148 4 646 099 4 971 325 5 319 318

Housing Allowances 1 227 571 - - - - - - - Travel Allowance 3 840 389 3 121 016 2 159 686 2 366 681 2 380 452 2 547 084 2 725 380 2 916 156 Cellphone Allowane 416 997 - 578 729 405 000 662 544 708 922 758 547 811 645 Pension Fund

Contributions 9 393 057 8 232 445 10 805 841 9 866 524 12 364 396 13 229 903 14 155 997 15 146 916

U.I.F Contributions 213 806 202 221 212 695 219 529 223 313 238 945 255 671 273 568 Medical Aid

Contributions 5 626 303 5 009 358 5 930 140 5 250 520 5 947 966 6 364 323 6 809 826 7 286 514

Skills Development Levies

590 499 658 875 605 778 597 643 789 550 844 818 903 955 967 232

Leave Pay - 473 373 - 764 184 450 000 481 500 515 205 551 269

25

S & T Reimbursements

398 134 150 000 350 000 374 500 400 715 428 765

EAAB Internship Programme

720 000 876 174 1 200 000 632 500 900 000 963 000 1 030 410 1 102 539

Long service awards

64 200 420 000 242 100 221 050 259 047 277 180 296 583 317 344

Implementation of the Pay Progression Policy

2 000 000 - - - - - - -

Service cost on valuation

(5 124 000)

- - - - -

Valuation Service and Interest Cost 131 000 - - - - - Interest cost on valuation

of pension fund - (8 163

000) - - - - - -

Actuarial (gain)/loss - 4 482 000 - - - - - - - 1 367 000 - - - - - -

Board Members

Remuneration 2.3

2 879 566 2 915 978 3 032 183 3 090 118 3 287 344 3 517 458 3 763 680 4 027 138

Board Members Remuneration

2 716 572 2 881 737 2 860 550 2 976 767 3 103 697 3 320 956 3 553 422 3 802 162

Travelling Allowance

162 994 34 241 171 633 113 351 183 647 196 503 210 258 224 976

Total Operating Costs 140 504 155 122 536 676 138 293 793 130 996 040 157 034 407 167 926 836 179 689 436 191 110 385

Surplus/(Deficit) before CAPEX

5 544 829 656 839 13 081 255 8 124 239 12 188 883 13 142 085 14 054 309 16 011 665

Capital Expenditure 3 5 328 000 2 673 571 13 050 000 3 769 604 11 750 000 1 200 000 1 250 000 1 250 000

Office Furniture 700 000 4 263 200 000 419 016 200 000 100 000 100 000 100 000 Office Equipment 850 000 71 564 200 000 60 508 200 000 100 000 100 000 100 000 Computers 1 500 000 1 168 493 500 000 580 555 600 000 150 000 150 000 150 000 Software 798 000 539 727 - - 200 000 250 000 300 000 300 000

26

ERP - IT System overhaul

- - 10 000 000 1 500 000 8 500 000 - - -

Intellectual Property - Education Materials

200 000 - 100 000 - - 100 000 100 000 100 000

Land and Buildings 1 280 000 889 525 2 050 000 1 209 525 2 050 000 500 000 500 000 500 000

Surplus/(Deficit) after CAPEX 216 829 (2 016 733)

31 255 4 354 635 438 883 11 942 085 12 804 309 14 761 665

27

1.7.2 Operational expenditure per programme

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Expenses

Audited Outcome Audited Outcome Audited outcome Budget estimate

Approved budget

Changes from approved

budget

Budget estimate

Revised budget

estimate

Changes from budget

estimate

Budget estimate Revised budget estimate

Changes from budget estimate

Planning Budget Estimate

Rand thousand

Objective/Activity

Administration 61 454 119 208 70 409 82 969 88 501 5 532 89 422 97 752 8 330 95 692 104 494 8 802 111 817

Economic classification

Current payments 61 454 119 208 70 409 82 969 88 501 5 532 89 422 97 752 8 330 95 692 104 494 8 802 111 817

Compensation of employees 32 718 36 432 44 163 45 519 48 426 2 907 49 340 55 753 6 413 52 793 59 463 6 670 63 625

Salaries and wages 32 718 36 432 44 163 45 519 48 426 2 907 49 340 55 753 6 413 52 793 59 463 6 670 63 625

Social contributions - - - - - - - - - - - - -

Goods and services 25 154 78 651 22 270 30 944 34 145 3 201 33 653 35 915 2 262 36 020 38 520 2 500 41 225

Of which 1

Administrative fees - - - - - - - - - -

Advertising - - - - - 250 250 268 268 286

Agency and support/outsourced services 6 302 3 479 3 202 4 240 4 240 - 4 537 3 500 (1 037) 4 855 3 745 (1 110) 4 007

Assets less than R5 000 - - 5 20 20 20 20 21 21 23

Audit costs - - 1 897 2 000 2 000 3 140 3 140 3 360 3 360 3 595

Bank charges - - 589 796 796 880 880 942 942 1 008

Board costs - - 2 916 3 032 3 032 3 287 3 287 3 517 3 517 3 764

Bursaries (employees) - - 814 790 790 910 910 974 974 1 042

Catering: internal activities - - 485 360 360 406 406 434 434 465

Communication 2 994 3 111 3 477 2 317 3 102 785 2 479 2 246 (233) 2 653 2 403 (250) 2 571

Computer services 1 051 1 683 1 544 2 340 2 340 - 2 504 2 340 (164) 2 678 2 504 (174) 2 679

Consultants 2 057 2 862 3 084 1 340 1 640 300 1 434 1 780 346 1 534 1 905 371 2 038

Contractors - - - - - - - - - - - - -

Entertainment - - 93 - - - - - - -

Inventory - - - - - - - - - - - - -

Lease Payments 242 524 298 631 308 (323) 685 734 49 743 792 49 856

Legal fees - - 174 1 000 1 000 1 200 1 200 1 284 1 284 1 374

Non life insurance - - 667 929 929 842 842 900 900 963

Printing and publication - - 1 991 1 700 1 700 1 500 1 500 1 605 1 605 1 717

Property payments - - 3 571 3 921 3 921 4 151 4 151 4 442 4 442 4 753

Repairs and maintenance 1 257 1 470 1 036 2 648 2 648 - 2 833 2 705 (128) 3 031 2 894 (137) 3 097

Research and development - - - - - - - - - - - - -

Training and staff development 1 009 1 058 436 456 700 244 488 700 212 522 749 227 801

Travel and subsistence 3 470 3 671 2 027 1 495 1 645 150 1 600 1 728 128 1 712 1 849 137 1 978

Venues and facilities - - 107 100 100 120 120 128 128 138

Other unclassified expenditure 6 772 60 793 (6 142) 15 477 2 874 (12 603) 17 093 3 476 (13 617) 18 292 3 804 (14 488) 4 070

Valuation of post retirement benefits 6 772 - (7 325) 15 477 - (15 477) 17 093 - (17 093) 18 292 - (18 292) -

Postage & subscription - - 437 892 892 918 918 979 979 1 047

Bad debts written off and impairments - - (381) - - 932 932 997 997 1 067

Other expenditure - 60 793 251 1 982 1 982 727 727 865 865 1 030

EAAB Internship programme - - 876 - - 900 900 963 963 926

Depreciation 3 532 4 089 3 976 6 506 5 930 (576) 6 429 6 084 (345) 6 879 6 511 (368) 6 967

Losses from 50 36 - - - - - - - - - - -

Sale of fixed assets - 7 - - - - - - - - - - -

Impairments and Adjustments to Fair Value 50 29 - - - - - - - - - - -

28

Adjustments to Fair value of financial assets - - - - - - - - - - - - -

Impairments to non-financial assets 50 29 - - - - - - - - - - -

Other - - - - - - - - - - - - -

Total Expenditure 61 454 119 208 70 409 82 969 88 501 5 532 89 422 97 752 8 330 95 692 104 494 8 802 111 817

29

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Expenses

Audited Outcome Audited Outcome Audited outcome Budget estimate

Approved budget

Changes from approved budget

Budget estimate

Revised budget

estimate


Budget estimate

Revised budget estimate


Planning Budget

Estimate

Rand thousand

Objective/Activity

Compliance 29 844 30 796 33 568 39 973 37 711 (2 262) 42 770 40 643 (2 127) 45 765 43 489 (2 276) 46 533


Current payments 29 844 30 796 33 568 39 972 37 711 (2 261) 42 770 40 643 (2 127) 45 765 43 489 (2 276) 46 533

Compensation of employees 26 909 27 973 30 729 34 549 32 994 (1 555) 36 968 35 300 (1 668) 39 556 37 771 (1 785) 40 415

Salaries and wages 26 909 27 973 30 729 34 549 32 994 (1 555) 36 968 35 300 (1 668) 39 556 37 771 (1 785) 40 415


Goods and services 2 935 2 823 2 839 5 423 4 717 (706) 5 802 5 343 (459) 6 209 5 718 (491) 6 118

Of which 1


Advertising - - - - - - - - - -

Agency and support/outsourced services 809 598 532 2 307 - (2 307) 2 468 - (2 468) 2 641 - (2 641) -

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

Audit costs - - - - - - - - - -

Bank charges - - - - - - - - - -

Board costs - - - - - - - - - -

Bursaries (employees) - - 572 760 760 790 790 845 845 904


Communication 286 746 926 580 580 - 620 526 (94) 664 563 (101) 602

Computer services - - - - - - - - - - - - -

Consultants 172 - 28 156 156 - 166 303 137 178 324 146 346

Contractors - - - - - - - - - -

Entertainment - - - - - - - - - -

Inventory - - - - - - - - - -

Lease Payments - - - - - - - - - - - - -

Legal fees - - 98 1 550 1 550 1 850 1 850 1 980 1 980 2 118

Non life insurance - - - - - - - - - -

Printing and publication - - - - - - - - - -

Property payments - - - - - - - - - -

Repairs and maintenance - - - - - - - - - - - - -

Research and development - - - - - - - - - -

Training and staff development 460 380 - 1 443 - (1 443) 1 544 - (1 544) 1 652 - (1 652) -

Travel and subsistence 1 016 655 535 726 726 - 777 794 17 831 849 18 909

Venues and facilities - - - 757 757 888 888 950 950 1 017

Other unclassified expenditure 192 444 114 211 118 (93) 227 123 (104) 243 132 (111) 141

Subscriptions 192 444 114 211 118 (93) 227 123 (104) 243 132 (111) 141

Please Specify - - - - - - - - - -

Please Specify - - - - - - - - - -

Please Specify - - - - - - - - - -

Please Specify - - - - - - - - - -

Outside shareholders Interest - - - - - - - - - - - - -

Total Expenditure 29 844 30 796 33 568 39 972 37 711 (2 261) 42 770 40 643 (2 127) 45 765 43 489 (2 276) 46 533

30

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Expenses

Audited Outcome

Audited Outcome

Audited outcome Budget estimate

Approved budget Changes from approved budget

Budget estimate

Revised budget estimate

Changes from budget

estimate

Budget estimate Revised budget estimate


Planning Budget

Estimate

Rand thousand

Objective/Activity

Education and training 24 132 25 136 18 559 16 619 25 424 8 805 17 783 18 640 857 19 028 19 945 918 21 341


Current payments 24 132 25 136 18 559 16 619 25 424 8 805 17 783 18 640 857 19 028 19 945 917 21 341

Compensation of employees 7 243 9 503 11 003 10 589 20 759 10 170 11 331 13 017 1 686 12 124 13 928 1 804 14 903

Salaries and wages 7 243 9 503 11 003 10 589 20 759 10 170 11 331 13 017 1 686 12 124 13 928 1 804 14 903


Goods and services 16 889 15 633 7 556 6 030 4 665 (1 365) 6 452 5 623 (830) 6 904 6 017 (887) 6 438

Of which 1


Advertising - - - - - - - - - -

Agency and support/outsourced services 5 452 13 618 37 3 090 370 (2 720) 3 306 370 (2 936) 3 538 396 (3 142) 424

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

Audit costs - - - - - - - - - -

Bank charges - - - - - - - - - -

Board costs - - - - - - - - - -

Bursaries (employees) - - 105 200 200 160 160 171 171 183


Communication 492 610 316 685 375 (310) 733 493 (241) 784 527 (257) 564

Computer services - - - - - - - - - - - - -

Consultants - 65 84 200 200 - 214 200 (14) 229 214 (15) 229

Contractors - - - - - - - - - -

Entertainment - - - - - - - - - -

Inventory 548 370 557 500 500 - 535 (535) 572 (572)

Lease Payments - - - - - - - - - - - - -

Legal fees - - - - - - - - - -

Non- life insurance - - - - - - - - - -

Printing and publication - - 288 - - - - - - -

Property payments - - - - - - - - - -

Repairs and maintenance - - - - - - - - - - - - -

Research and development - - - - - - - - - -

Training and staff development 43 82 - 400 - (400) 428 - (428) 458 - (458) -

Travel and subsistence 206 301 180 350 200 (150) 375 450 75 401 482 81 515

Venues and facilities - - 2 924 1 300 1 300 1 300 1 300 1 391 1 391 1 488

Other unclassified expenditure 10 148 587 3 027 805 1 500 695 861 2 620 1 759 922 2 804 1 882 3 000

CPD expenses 10 148 587 2 815 805 1 420 615 861 1 670 809 922 1 787 865 1 912

Postage & subscriptions - - - 80 80 50 50 54 54 57

Promotion and marketing - - 206 - - 150 150 161 161 172

Other expenditure - - 7 - - 750 750 802 802 859

Please Specify - - - - - - - - - -

Outside shareholders Interest - - - - - - - - - - - - -

Total Expenditure 24 132 25 136 18 559 16 619 25 424 8 805 17 783 18 640 857 19 028 19 945 917 21 341

31

1.7.3 Cash flow statement

The budget information (Medium term estimate) is done on (cash/accrual) basis:

Notes 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Cash flow data Budget Audited

Outcome Budget Audited


Outcome

Budget

estimate Approved

budget

Budget

estimate

Revised Budget

Estimate Budget

estimate

Revised Budget

Estimate

Planning Budget

Estimate

R Thousand

Cash flow from operating activities 10 039 (8 220) 7 826 (23 531) 11 626 10 915 1 119 20 392 553 18 305 581 19 687 21 057

Cash receipts from stakeholders 118 363 102 223 131 048 131 792 146 049 123 194 133 265 151 375 142 594 169 223 152 575 181 069 193 744

Tax receipts - - - - - - - - - - - - -

Sales of goods and services other than capital assets 116 382 95 939 120 257 123 037 135 287 116 378 125 590 139 700 134 381 156 460 143 788 167 413 179 131

Sales of goods and services produced by department (excl. capital assets) 116 382 95 939 120 257 123 037 135 287 116 378 125 590 139 700 134 381 156 460 143 788 167 413 179 131

Sales by market establishments 116 382 18 067 30 760 20 972 30 216 23 783 30 511 42 120 32 646 49 441 34 931 52 901 56 605

Administrative fees - 51 681 52 272 55 103 53 190 52 464 56 042 56 042 59 965 58 489 64 162 62 583 66 963

Other sales - 26 191 37 225 46 962 51 881 40 131 39 037 41 538 41 770 48 530 44 695 51 929 55 563

Transfers received - - - - - - - - - - - - -

Other goverment units - - - - - - - - - - - - -

Departmental transfers - - - - - - - - - - - - -

Executive Authority ( e.g. Health) - - - - - - - - - - - - -

Other national departments - - - - - - - - - - - - -

Departmental agencies and accounts - - - - - - - - - - - - -

Provincial governments - - - - - - - - - - - - -

Local governments - - - - - - - - - - - - -

Higher education institutions - - - - - - - - - - - - -

Foreign governments and international organisations - - - - - - - - - - - - -

Local non-government donors - - - - - - - - - - - - -

Fines, penalties and forfeits - 3 972 8 581 7 093 8 750 6 208 6 825 10 825 7 303 11 907 7 814 12 740 13 633

Interest and rent on land 1 981 2 312 2 210 1 662 2 012 608 850 850 910 856 973 916 980

Interest 1 981 2 312 2 210 1 662 2 012 608 850 850 910 856 973 916 980

Dividends - - - - - - - - - - - - -

Rent on land - - - - - - - - - - - - -

Unclassified revenue - - - - - - - - - - - - -

Tax benefit - - - - - - - - - - - - -

Outside shareholders interest - - - - - - - - - - - - -

Cash paid to stakeholders 108 324 110 443 123 222 155 323 134 423 112 279 132 146 130 983 142 041 150 918 151 994 161 382 172 687


Compensation of employees 20

73 058 66 870 81 789 73 908 91 213 74 865 90 657 88 862 97 638 104 790 104 473 112 125 119 974

Salaries and wages 21 73 058 66 870 81 789 73 908 91 213 74 865 90 657 88 862 97 638 104 790 104 473 112 125 119 974

Social contributions 22 - - - - - - - - - - - - -

Goods and services 23

35 266 43 573 41 433 81 415 43 210 37 414 41 489 42 121 44 403 46 128 47 521 49 257 52 713

Administrative fees 24 - - - - - - - - - - - - -

Advertising 25 550 173 135 - 200 - - - - 250 - 268 286

Agency and support/outsourced services 26 3 646 2 870 3 789 3 531 4 064 3 773 4 610 4 610 4 932 3 870 5 279 4 141 4 431

Assets less than R5 000 27 - 24 - 15 - 5 20 20 21 20 23 21 23

Audit costs 28 1 742 2 054 1 757 1 747 1 700 1 897 2 000 2 000 2 140 3 140 2 289 3 360 3 595

Bank charges 29 624 877 724 563 933 589 796 796 851 880 911 942 1 008

Board costs 30 3 149 1 360 2 691 1 382 2 880 2 916 3 168 3 032 3 389 3 287 3 626 3 517 3 764

../../../../../../../AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Content.MSO/FBA64C10.xlsm#'Economic definitions'!C85











32

Bursaries (employees) 31 915 905 1 513 1 360 1 488 1 490 1 650 1 750 1 766 1 860 1 889 1 990 2 130

Catering: internal activities 32 615 407 392 475 642 558 450 450 482 506 515 541 579

Communication 33 3 434 3 599 3 195 4 469 3 448 4 950 3 582 4 057 3 833 3 264 4 101 3 493 3 737

Computer services 34 1 179 1 052 1 133 1 684 2 640 1 544 2 340 2 340 2 504 2 340 2 678 2 504 2 679

Consultants 35 1 630 2 229 1 750 2 927 2 964 3 196 1 696 1 996 1 814 2 283 1 941 2 442 2 613

Contractors 36 - - - - - - - - - - - - -

Entertainment 37 32 22 133 - 143 93 - - - - - - -

Inventory 38 400 548 400 370 600 557 500 500 535 - 572 - -

Lease Payments 39 - 5 257 281 253 298 331 308 364 734 400 792 856

Legal fees 40 1 711 821 1 308 599 1 308 273 2 550 2 550 2 729 3 050 2 920 3 264 3 492

Non life insurance 41 716 556 764 570 823 667 932 929 997 841 1 067 900 963

Printing and publication 42 2 230 1 714 2 050 1 794 2 000 2 050 2 100 1 700 2 247 1 500 2 404 1 605 1 717

Property payments 43 2 908 1 052 900 2 812 1 989 1 944 2 547 3 921 2 725 4 151 2 917 4 442 4 753

Repairs and maintenance 44 829 1 257 1 029 1 470 1 141 1 036 2 648 2 648 2 833 2 705 3 031 2 894 3 097

Research and development 45 40 - - - - - - - - - - - -

Training and staff development 46 993 607 1 532 460 922 436 650 700 696 700 744 749 801

Travel and subsistence 47 3 383 4 691 3 302 3 302 2 648 2 741 2 571 2 571 2 751 2 972 2 944 3 180 3 402

Venues and facilities 48 2 342 5 315 4 376 5 208 4 357 3 031 2 157 2 157 2 307 2 308 2 469 2 470 2 642

Other unclassified expenditure 49 2 198 11 435 8 303 46 396 6 067 3 371 4 191 3 086 4 487 5 466 4 801 5 742 6 144

Of Which:

Other operational expenses 250 408 392 - - - - - - - - - -

Corporate Social investments & Corporate gifts - - - 186 570 0 300 300 321 900 343 963 1 030

CPD Expenses - - 2 8 474 3 000 2 815 1 420 1 420 1 519 1 670 1 626 1 787 1 912

Postage & Subscriptions - - - 718 846 556 1 061 1 091 1 135 1 088 1 214 1 164 1 246

Other expenses (2016/17 incls R19.47m paid for pension fund conversion) 1 948 11 027 7 909 37 018 1 651 1 410 275 1 512 1 808 1 618 1 828 1 956

Interest and rent on land - - - - - - - - - - - - -

Interest 53 - - - - - - - - - - - - -

Dividends 54 - - - - - - - - - - - - -

Rent on land 55 - - - - - - - - - - - - -

Tax payment 61 - - - - - - - - - - - - -


Transfers and subsidies 56 - - - - - - - - - - - - -

Private enterprises - - - - - - - - - - - - -

Higher education institutions - - - - - - - - - - - - -

Foreign governments and international organisations - - - - - - - - - - - - -

Non-profit institutions - - - - - - - - - - - - -

Households - - - - - - - - - - - - -

Social benefits 58 - - - - - - - - - - - - -

Other transfers to households 59 - - - - - - - - - - - - -

Cash flow from investing activities (4 835) (6 276) (2 650) 2 485 (5 328) 4 575 (3 450) (13 050) (1 450) (11 750) (1 300) (1 200) (1 250)

Acquisition of property, plant, equipment & intangible assets (4 835) (4 448) (2 650) (2 836) (5 328) (2 674) (3 450) (13 050) (1 450) (11 750) (1 300) (1 200) (1 250)

Buildings: residential 68 - - - - - - - - - - - - -

Buildings: non-residential 69 (500) (2 847) (1 000) (226) (1 280) (890) (2 050) (2 050) (500) (2 050) (500) (500) (500)

Other fixed structures 70 - - - - - - - - - - - - -

Investment property 71 - - - - - - - - - - - - -

Transport equipment 72 (460) - (50) - - - - - - - - - -

Furniture and office equipment 73 (300) (495) (200) (741) (1 750) (76) (400) (400) (300) (400) (200) (200) (200)

Other machinery and equipment 73 (100) - (200) - - - - - - - - - -


































33

Heritage assets 74 - - - - - - - - - - - - -

Buildings and other fixed structures - - - - - - - - - - - - -

Other than buildings and fixed structures - - - - - - - - - - - - -

Biological assets 66 - - - - - - - - - - - - -

Software and other intangible assets 75 (2 700) (374) (1 000) (904) (798) (540) (500) (10 100) (500) (8 700) (450) (350) (400)

Land & subsoil assets 76 - - - - - - - - - - - - -

Computer equipment 73 (775) (731) (200) (965) (1 500) (1 168) (500) (500) (150) (600) (150) (150) (150)

Other flows from Investing Activities - (1 828) - 5 320 - 7 249 - - - - - - -

Domestic - (1 828) - 5 320 - 7 249 - - - - - - -

long term investments - - - - - - - - - - - - -

Proceeds from sale of property, plant, equipment & intangible assets - 3 - 3 - - - - - - - - -

Sale of other assets - - - - - - - - - - - - -

Other - (1 831) - 5 317 - 7 249 - - - - - - -

Foreign - - - - - - - - - - - - -

long term investments - - - - - - - - - - - - -

Proceeds from sale of assets - - - - - - - - - - - - -

Other - - - - - - - - - - - - -

Interest - - - - - - - - -

Dividends - - - - - - - - -

Outside shareholders interest - - - - - - - - -

Cash flow from financing activities - - - - - - - - - - - - -

Deferred Income - - - - - - - - - - - - -

Departmental transfer - - - - - - - - - - - - -

Other Revenue - - - - - - - - - - - - -

Borrowing Activities - - - - - - - - - - - - -

Domestic - - - - - - - - - - - - -

Loan from other government units - - - - - - - - - - - - -

Short-term (≤12 months) - - - - - - - - - - - - -

Long-term (>12 months) - - - - - - - - - - - - -

Market loans - - - - - - - - - - - - -

Other - - - - - - - - - - - - -

Repayment of long-term loans - - - - - - - - - - - - -

Foreign - - - - - - - - - - - - -

Market loans - - - - - - - - - - - - -

Other - - - - - - - - - - - - -

Repayment of long-term loans - - - - - - - - - - - - -

Repayment of finance leases - - - - - - - - - - - - -

Other (e.g. issuance of shares, revaluations) - - - - - - - - - - - - -

Interest - - - - - - - - -

Dividends - - - - - - - - -

Net increase / (decrease) in cash and cash equivalents 5 204 (14 496) 5 176 (21 047) 6 298 15 490 (2 331) 7 342 (897) 6 555 (719) 18 487 19 807






34

1.7.4 Statement of financial position

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Statement of Financial Position Notes

Budget Audited

Outcome

Budget Audited


Outcome

Budget

estimate Approved

budget

Budget

estimate

Revised Budget

Estimate

Budget

estimate

Revised Budget

Estimate Planning

Budget Estimate

ASSETS

Current assets 40 000 53 696 47 397 27 635 33 673 34 053 30 582 33 504 27 800 32 589 29 746 34 306 36 115

Current investments 77 17 325 - - - - - - - - - - - -

Inventory 78 220 307 328 219 351 951 251 618 269 482 287 516 552

Short term loans 79 3 125 14 329 4 300 9 012 4 601 1 763 4 601 - - - - - -

Trade and other receivables from exchange transactions 81 1 800 829 5 420 3 744 4 003 2 166 4 450 2 318 4 762 2 479 5 095 2 653 2 839

Prepayments 83 - 4 704 500 2 179 2 332 1 202 2 332 1 286 2 495 1 376 2 670 1 472 1 576

Cash and cash equivalents 84 17 530 33 528 36 849 12 481 22 386 27 971 18 948 29 282 20 274 28 252 21 694 29 665 31 148

Non-current assets held for sale 85 - - - - - - - - - - - - -

Non-current assets 77 848 116 995 115 213 105 800 115 010 104 397 106 193 103 331 113 627 113 606 121 580 119 286 125 251

Property, plant and equipment 64 77 848 105 246 104 415 104 241 104 937 102 916 105 452 101 356 112 834 104 406 120 732 109 626 115 108

Intangible assets 65 - 1 843 892 1 559 167 1 481 741 1 975 793 9 200 848 9 660 10 143

Defined benefit plan assets 99 - 9 906 9 906 - 9 906 - - - - - - - -

Total assets 117 848 170 691 162 610 133 435 148 683 138 450 136 775 136 835 141 426 146 195 151 326 153 592 161 366

LIABILITIES

Current liabilities 11 320 29 302 20 800 32 331 18 820 44 313 18 895 35 771 20 218 28 085 21 633 27 177 25 214

Payments received in advance 102 - - - - - - - - - - - - -

Trade and other payables from exchange transactions 103 7 500 24 616 18 000 27 258 15 420 35 867 15 495 31 807 16 580 23 855 17 740 22 662 20 396

Current provisions 109 3 820 4 686 2 800 4 578 3 400 7 909 3 400 3 400 3 638 3 638 3 893 3 893 4 165

Leave 3 400 4 686 2 800 4 578 3 400 4 253 3 400 3 400 3 638 3 638 3 893 3 893 4 165

Bank overdraft 110 - - - - - - - - -

Other current financial liabilities 116 - - - 495 - 537 - 564 - 592 - 622 653

Non-current liabilities 9 720 8 556 8 556 24 634 8 556 17 010 27 098 27 098 28 995 28 995 31 025 31 025 33 196

Operating Lease Liability 125 - - - - - - - - - - - - -

Other non-current financial liabilities 126 - - - 15 771 - 7 302 17 349 17 349 18 563 18 563 19 863 19 863 21 253

Non-current provisions 127 9 720 - - - - - - - - - - - -

Defined benefit plan obligations 128 - 8 556 8 556 8 863 8 556 9 708 9 749 9 749 10 431 10 431 11 162 11 162 11 943

Derivatives financial instruments 132 - - - - - - - - - - - - -

Total liabilities 21 040 37 858 29 356 56 965 27 376 61 323 45 993 62 869 49 213 57 080 52 657 58 201 58 410

NET ASSETS 96 808 132 833 133 254 76 470 121 307 77 127 90 782 73 966 92 213 89 115 98 669 95 391 102 956

Accumulated surplus / (deficit) 133 96 808 102 526 133 254 76 470 121 307 77 127 90 782 73 966 92 213 89 115 98 669 95 391 102 956

Reserves 134 - 30 307 - - - - - - - - - - -

Total net assets and liabilities 117 848 170 691 162 610 133 435 148 683 138 450 136 775 136 835 141 426 146 195 151 326 153 592 161 366

Contingent liabilities

- - - - - - - - - - - - -























35

1.7.5 Income Statement per Quarter QUARTERLY TARGET 2019/2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 BUDGET

Turnover 169 252 514 28 471 246 35 015 748 47 875 518 57 890 002

FFC Renewals 44 126 013 1 314 620 11 984 123 24 843 893 5 983 377

Principals 16 914 099 644 560 5 726 267 8 310 490 2 232 781 Full Status 12 257 195 298 064 3 204 453 7 352 595 1 402 083 Intern Estate

Agents 13 768 405 324 688 2 766 011 8 532 301 2 145 405

Attorneys 144 585 15 381 15 381 33 839 79 983 Firms 1 012 506 24 622 264 704 607 361 115 819 Non-Executive

Director 29 224 7 306 7 306 7 306 7 306

New Registrations 5 344 316 1 336 079 1 336 079 1 336 079 1 336 079

Principals 214 935 53 734 53 734 53 734 53 734 Non-Principal 3 835 905 958 976 958 976 958 976 958 976 Status Change 513 000 128 250 128 250 128 250 128 250 Firms 630 476 157 619 157 619 157 619 157 619 Non-Executive

Director 150 000 37 500 37 500 37 500 37 500

Examinations

43 007 086

6 626 772

2 501 772

2 501 772

31 376 772

Examination Fees

2 106 320 526 580 526 580 526 580 526 580

Sales -Study Guides

1 493 750 373 438 373 438 373 438 373 438

Over 60's exemptions

373 450 93 363 93 363 93 363 93 363

Disability and Impairment exemption

44 250 11 063 11 063 11 063 11 063

Appeals 97 816 24 454 24 454 24 454 24 454 Non- executive

director exemption

137 500 34 375 34 375 34 375 34 375

Equivalency exemptions

1 254 000 313 500 313 500 313 500 313 500

CPD 37 500 000 5 250 000 1 125 000 1 125 000 30 000 000

Interest Income

856 097

214 024

214 024

214 024

214 024

Interest on Investments

706 097 176 524 176 524 176 524 176 524

Interest Other 150 000 37 500 37 500 37 500 37 500

Other Income

75 919 002

18 979 750

18 979 750

18 979 750

18 979 750

Administration Fees

58 488 834 14 622 209 14 622 209 14 622 209 14 622 209

Penalties 4 757 500 1 189 375 1 189 375 1 189 375 1 189 375 Fines 7 150 000 1 787 500 1 787 500 1 787 500 1 787 500 Delivery charges 44 000 11 000 11 000 11 000 11 000 Legal document

charges 13 200 3 300 3 300 3 300 3 300

Sundry income 1 300 000 325 000 325 000 325 000 325 000 Advertising Fees 55 000 13 750 13 750 13 750 13 750 Duplicate and

Amendments - FFC

1 440 000 360 000 360 000 360 000 360 000

Rental Income 2 670 468 667 617 667 617 667 617 667 617

36

Operating costs 157 034 407 38 807 345 41 862 053 37 124 005 39 241 005 Admin expense 45 416 653 11 988 443 10 701 003 10 305 103 12 422 103

Venue Hire 2 188 000 1 662 880 175 040 175 040 175 040 COS - NQF 4 &

5 500 000 125 000 125 000 125 000 125 000

Invigilators' and Markers Fees

370 000 92 500 92 500 92 500 92 500

Venues, Conferences and Breakaways

120 000 30 000 30 000 30 000 30 000

Staff Training and development

700 000 175 000 175 000 175 000 175 000

Bursaries 1 860 000 279 000 279 000 186 000 1 116 000 Software

License 1 390 000 347 500 347 500 347 500 347 500

Hardware Maintenance

450 000 112 500 112 500 112 500 112 500

Software Maintenance

500 000 125 000 125 000 125 000 125 000

Publication and Communication

500 000 125 000 125 000 125 000 125 000

Insurance 838 000 41 900 712 300 41 900 41 900 Assets

expensed 20 000 5 000 5 000 5 000 5 000

Provision for doubtful debts

881 644 220 411 220 411 220 411 220 411

Impairment Loss 50 000 - - - 50 000 Postages 650 000 162 500 162 500 162 500 162 500 Stationery and

Printing 1 500 000 375 000 375 000 375 000 375 000

Travelling expenses

2 971 747 742 937 742 937 742 937 742 937

Bank Charge 880 000 220 000 220 000 220 000 220 000 Auditors

Remuneration - Current Year

2 090 000 209 000 209 000 209 000 1 463 000

Internal Audit Fees

1 050 000 210 000 157 500 525 000 157 500

Telephone and Telex

2 764 355 691 089 691 089 691 089 691 089

Photo-copier charges

500 000 125 000 125 000 125 000 125 000

Staff welfare 210 000 52 500 52 500 52 500 52 500 Consumables 42 000 10 500 10 500 10 500 10 500 Subscriptions 437 943 109 486 109 486 109 486 109 486 Office Cleaning 300 000 75 000 75 000 75 000 75 000 Rates and

Taxes Office Building

1 680 000 420 000 420 000 420 000 420 000

Repairs and Maintenance Building

2 500 000 625 000 625 000 625 000 625 000

Security Costs 802 500 200 625 200 625 200 625 200 625 Water and

Electricity 1 428 803 357 201 357 201 357 201 357 201

Repairs and Maintenance Vehicle

85 000 21 250 21 250 21 250 21 250

Repairs & Maintenance Furniture & Equipment

120 000 30 000 30 000 30 000 30 000

Promotion and Marketing

150 000 37 500 37 500 37 500 37 500

Advertising 250 000 62 500 62 500 62 500 62 500

37

Relocation Costs

100 000 25 000 25 000 25 000 25 000

Consultants Fees

2 282 560 570 640 570 640 570 640 570 640

Corporate Gifts 250 000 62 500 62 500 62 500 62 500 Call Center 3 500 000 875 000 875 000 875 000 875 000 CPD Expenses 1 670 000 668 000 250 500 250 500 501 000 Depreciation -

Office furniture 334 230 83 558 83 558 83 558 83 558

Depreciation - Office Equipment

853 879 213 470 213 470 213 470 213 470

Depreciation - Computer equipment

1 702 729 425 682 425 682 425 682 425 682

Depreciation - Motor Vehicles

102 672 25 668 25 668 25 668 25 668

Depreciation - Buildings

1 616 104 404 026 404 026 404 026 404 026

Amortisation - Software

1 278 841 319 710 319 710 319 710 319 710

Amortisation - Intellectual Property

196 367 49 092 49 092 49 092 49 092

Other operating

expense 3 540 458 885 114 885 114 885 114 885 114

Disciplinary costs

1 500 000 375 000 375 000 375 000 375 000

Legal Costs 1 550 000 387 500 387 500 387 500 387 500 Rental - Leased

Building 234 000 58 500 58 500 58 500 58 500

Recruitment and Selection

256 458 64 114 64 114 64 114 64 114

Staff costs 104 789 952 25 111 951 29 454 099 25 111 951 25 111 951

Salaries and Wages

70 635 911 17 658 978 17 658 978 17 658 978 17 658 978

Overtime Expenses

287 388 71 847 71 847 71 847 71 847

13th Cheque 5 197 238 1 299 310 1 299 310 1 299 310 1 299 310 Performance

awards 4 342 148 - 4 342 148 - -

Travel Allowance

2 380 452 595 113 595 113 595 113 595 113

Cellphone Allowane

662 544 165 636 165 636 165 636 165 636

Pension Fund Contributions

12 364 396 3 091 099 3 091 099 3 091 099 3 091 099

U.I.F Contributions

223 313 55 828 55 828 55 828 55 828

Medical Aid Contributions

5 947 966 1 486 991 1 486 991 1 486 991 1 486 991

Skills Development Levies

789 550 197 387 197 387 197 387 197 387

Leave Pay 450 000 112 500 112 500 112 500 112 500 S & T

Reimbursements

350 000 87 500 87 500 87 500 87 500

EAAB Internship Programme

900 000 225 000 225 000 225 000 225 000

Long service awards

259 047 64 762 64 762 64 762 64 762

38


3 287 344 821 836 821 836 821 836 821 836


3 103 697 775 924 775 924 775 924 775 924

Travelling Allowance

183 647 45 912 45 912 45 912 45 912

Total Operating Costs 157 034 407 38 807 345 41 862 053 37 124 005 39 241 005

Surplus/(Deficit) 12 218 107 (10 336 099) (6 846 305) 10 751 513 18 648 997

39

1.7.6 EAFF Revenue and Expenditure Estimates

INCOME AND EXPENDITURE BUDGET - FOR THE YEAR ENDING 31 MARCH 2020

Budget

2017/18 Audited

Outcome 2017/18

Approved Budget 2018/19

Forecast 2018/19

Budget 2019/20

Forecast 2020/21

Forecast 2021/22

Forecast 2022/23

Revenue 92 024 863 79 424 969 162 003 118 98 682 649 157 977 251 130 515 658 139 651 754 149 427 377

Contributions

Board 1 749 581 1 840 472 1 749 581 1 494 367 1 911 017 2 044 789 2 187 924 2 341 079

Contributions 1 749 581 1 840 472 1 749 581 1 494 367 1 911 017 2 044 789 2 187 924 2 341 079

- Interest 43 497 325 52 540 976 49 404 785 48 487 865 51 873 069 55 504 184 59 389 476 63 546 740

Agent interest 37 815 380 44 137 339 40 462 457 36 569 322 43 294 829 46 325 467 49 568 250 53 038 027 Interest on

Investments 5 681 945 7 528 936 8 892 328 11 918 543 7 922 214 8 476 769 9 070 143 9 705 053

Interest Other - 874 701 50 000 - 656 026 701 948 751 084 803 660

Other Income 46 777 957 25 043 521 110 848 752 48 700 417 104 193 164 72 966 686 78 074 354 83 539 559

Claims Recoveries

3 000 000 - 24 000 000 7 384 150 24 000 000 25 680 000 27 477 600 29 401 032

Fair Value Adjustments

43 777 957 25 043 521 40 980 252 41 316 267 44 193 164 47 286 686 50 596 754 54 138 527

Learnership Programme (SSETA)

- - 45 868 500 - 36 000 000 - -

-

40

Operating costs 85 595 083 66 586 039 146 193 758 85 590 314 139 988 402 111 267 591 119 056 322 127 390 264 -

Bank Charges 20 000 3 706 21 400 62 876 22 898 24 501 26 216 28 051 Claims Paid 4 000 000 843 346 24 000 000 7 905 613 24 000 000 25 680 000 27 477 600 29 401 032 Management

Fees 53 130 083 52 463 904 56 042 021 52 796 993 58 488 834 62 583 053 66 963 866 71 651 337

Provision for bad debts

1 000 000 (628 276)

1 070 000 6 384 150 1 144 900 1 225 043 1 310 796 1 402 552

Bad debts written off

- 1 080 954 - - - - - -

Interest expense 600 000 - 642 000 300 000 686 940 735 026 786 478 841 531 Consumer

Education Awareness

9 445 000 3 995 108 5 903 032 5 903 032 6 056 323 6 480 266 6 933 885 7 419 257

Stakeholder Awareness

2 000 000 1 234 147 942 619 1 000 000 1 325 968 1 418 786 1 518 101 1 624 368

Transformation Initiatives

10 000 000 3 030 168 5 926 186 5 926 186 6 080 079 6 505 684 6 961 082 7 448 358

Insurance 300 000 227 515 321 000 150 000 343 470 367 513 393 239 420 766 Publications -

Agent Magazine 1 600 000 1 344 823 1 712 000 1 808 813 1 831 840 1 960 069 2 097 274 2 244 083

Consultants fees 500 000 726 815 535 000 426 815 572 450 612 522 655 398 701 276 Legal fees 3 000 000 2 008 808 3 210 000 2 925 837 3 434 700 3 675 129 3 932 388 4 207 655 Learnership Programme (SSETA) - 36 000 000 - - -

Surplus 6 429 780 12 838 930 15 809 360 13 092 334 17 988 848 19 248 068 20 595 432 22 037 113

41

1.7.7 EAFF Cash Flow Statement

Notes 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Cash flow data Budget Audited



Outcome

Budget

estimate Approved

budget

Budget

estimate

Revised Budget

Estimate Budget

estimate

Revised Budget

Estimate

Planning Budget

Estimate

R Thousand

Cash flow from operating activities (7 441) (8 600) (12 121) (8 489) (36 348) 5 026 (29 665) 5 874

(31 741)

(6 067) (33 966) (45 081) (48 235)

Cash receipts from stakeholders 63 934 52 771 65 166 96 509 48 247 84 218 81 968 120 642 87 707 116 070 93 845 85 608 91 600

Tax receipts - - - - - - - - - - - - - Sales of goods and services other than capital

assets 63 934 52 771 65 166 96 509 48 247 84 218 81 968 120 642 87 707 116 070 93 845 85 608 91 600 Sales of goods and services produced by

department (excl. capital assets) 63 934 52 771 65 166 96 509 48 247 84 218 81 968 120 642 87 707 116 070 93 845 85 608 91 600

Sales by market establishments 63 934 32 895 28 971 42 529 39 565 53 506 42 212 112 082 45 167 106 910 48 328 75 807 81 113

Administrative fees - - - - - - - - - - - - -

Other sales - 19 876 36 195 53 980 8 682 30 712 39 756 8 560 42 540 9 160 45 517 9 801 10 487

Cash paid to stakeholders 71 374 61 371 77 287 104 998 84 595 79 192 111 633 114 768 119 448 122 137 127 811 130 689 139 835


Compensation of employees 20

- - - - - - - - - - - - -

Salaries and wages 21 - - - - - - - - - - - - -

Goods and services 23

70 653 60 916 76 515 104 946 83 995 79 192 110 991 114 126 118 761 121 450 127 076 129 954 139 049

Administrative fees 24 11 900 - - 13 498 19 445 8 259 25 861 12 772 27 672 13 429 29 609 14 369 15 377

Advertising 25 - - - - - - - - - - - - -

Agency and support/outsourced services 26 - - - 52 095 - 52 464 - 71 555 - 76 136 - 81 466 87 168

Bank charges 29 60 13 64 2 20 4 21 21 23 23 25 25 26

Board costs 30 51 493 52 137 52 272 - 53 130 - 53 191 - 56 914 - 60 898 - -

Communication 33 - 3 038 4 652 - - - - - - - - - -

Consultants 35 - 293 500 329 500 727 535 535 572 572 613 613 655

Legal fees 40 6 000 1 910 5 500 2 068 3 000 2 009 3 210 3 210 3 435 3 435 3 675 3 675 3 932

Non life insurance 41 100 18 107 7 300 228 321 321 343 343 368 368 393

Printing and publication 42 1 100 293 1 177 1 885 1 600 1 345 1 712 1 712 1 832 1 832 1 960 1 960 2 097

Venues and facilities 48 - - - - - - - - - - - - -

Other unclassified expenditure 49 - 3 214 12 243 35 062 6 000 14 156 26 140 24 000 27 970 25 680 29 928 27 478 29 401

Of Which:

Claims Paid - - - 11 634 4 000 843 24 000 24 000 25 680 25 680 27 478 27 478 29 401

Services SETA learnership - - - - 2 000 255 2 140 - 2 290 - 2 450 - -

Please specify - 3 214 12 243 23 428 - 13 058 - - - - - - -

Interest and rent on land 722 455 772 52 600 - 642 642 687 687 735 735 786

Interest 53 722 455 772 52 600 - 642 642 687 687 735 735 786


Transfers and subsidies 56 - - - - - - - - - - - - -

Private enterprises - - - - - - - - - - - - -

Households - - - - - - - - - - - - -

Other transfers to households 59 - - - - - - - - - - - - -

Cash flow from investing activities - 381 017 3 434 (415 911) 21 281 (34 680) 15 308 15 308 32 973 32 973 32 973 32 973 35 281

Other flows from Investing Activities - 381 017 3 434 (415 911) 21 281 (34 680) 15 308 15 308 32 973 32 973 32 973 32 973 35 281

Domestic - 381 017 3 434 (415 911) 21 281 (34 680) 15 308 15 308 32 973 32 973 32 973 32 973 35 281

../../../../../../../../LindokuhleT.EAAB/AppData/Local/Microsoft/Windows/INetCache/Content.MSO/D8C997F0.xlsm#'Economic definitions'!C85


















42

Sale of other assets - - - - - - - - - - - - -

Other - 381 017 3 434 (415 911) 21 281 (34 680) 15 308 15 308 32 973 32 973 32 973 32 973 35 281

Foreign - - - - - - - - - - - - -

Outside shareholders interest - - - - - - - - -

Cash flow from financing activities - - - - - - - - - - - - -

Deferred Income - - - - - - - - - - - - -

Other Revenue - - - - - - - - - - - - -

Borrowing Activities - - - - - - - - - - - - -

Loan from other government units - - - - - - - - - - - - -

Long-term (>12 months) - - - - - - - - - - - - -

Market loans - - - - - - - - - - - - -

Other - - - - - - - - - - - - -

Dividends - - - - - - - - -

Net increase / (decrease) in cash and cash equivalents (7 441) 372 417 (8 687) (424 400) (15 067) (29 654) (14 357) 21 182 1 232 26 906 (993) (12 108) (12 954)

43

1.7.8 EAFF Statement of Financial Position

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Statement of Financial Position Notes

Budget Audited

Outcome

Budget Audited


Outcome

Budget

estimate Approved

budget

Budget

estimate

Revised Budget

Estimate

Budget

estimate

Revised Budget

Estimate Planning

Budget Estimate

ASSETS

Current assets 458 601 607 926 612 726 278 516 284 895 260 511 280 449 280 449 281 020 281 020 281 632 281 632 301 346

Current investments 77 436 802 138 260 130 716 238 371 273 900 251 216 272 289 272 289 272 289 272 289 272 289 272 289 291 349 Trade and other receivables from exchange transactions 81 15 554 11 842 13 523 6 722 3 571 5 526 3 821 3 821 4 088 4 088 4 375 4 375 4 681

Prepayments 83 - - - - - - - - - - - - -

Cash and cash equivalents 84 6 246 457 824 468 487 33 423 7 424 3 769 4 339 4 339 4 643 4 643 4 968 4 968 5 316


Non-current assets 129 279 - - 332 000 348 000 350 679 364 919 364 919 390 463 390 463 417 796 417 796 447 042

Property, plant and equipment 64 - - - - - - - - - - - - -

Non-Current Investments 91 129 279 - - 332 000 348 000 350 679 364 919 364 919 390 463 390 463 417 796 417 796 447 042


Total assets 587 880 607 926 612 726 610 516 632 895 611 190 645 368 645 368 671 483 671 483 699 428 699 428 748 388

LIABILITIES

Current liabilities 15 069 29 088 21 711 27 584 13 864 15 419 10 864 6 368 11 302 6 813 11 414 5 096 5 453

Payments received in advance 102 - - - - - - - - - - - - - Trade and other payables from exchange transactions 103 7 687 14 692 12 805 18 572 7 763 13 656 4 763 6 368 5 096 6 813 5 096 5 096 5 453

Taxes and transfers payable 108 - - - - - - - - - - - - -

Current provisions 109 4 257 67 4 546 - 1 500 - 1 500 - 1 605 - 1 717 - -

Provisions for operational liabilities - - - - - - - - - - - - -

Provisions for oustanding claims 4 257 67 4 546 - 1 500 - 1 500 - 1 605 - 1 717 - -

Bank overdraft 110 - - - - - - - - -

Current portion of operatinglease liability - - - - - - - - -

Managed funds 119 3 125 14 329 4 360 9 012 4 601 1 763 4 601 - 4 601 - 4 601 - -


Non-current liabilities - - - - - - - - - - - - -

Unspent conditional grants and receipts 121 - - - - - - - - - - - - -


Total liabilities 15 069 29 088 21 711 27 584 13 864 15 419 10 864 6 368 11 302 6 813 11 414 5 096 5 453

NET ASSETS 572 811 578 838 591 015 582 932 619 031 595 771 656 876 639 000 702 857 664 670 688 014 694 332 742 935

Accumulated surplus / (deficit) 133 572 811 578 838 591 015 582 932 619 031 595 771 656 876 639 000 702 857 664 670 688 014 694 332 742 935

Reserves 134 - - - - - - - - - - - - -

Cash reserves - - - - - - - - - - - - -

Non_cash reserves - - - - - - - - - - - - -

Capital fund/ Deferred government grant 135 - - - - - - - - - - - - - Capitalised value of pensions (for Comp Fund only) 136 - - - - - - - - - - - - -

Total net assets and liabilities 587 880 607 926 612 726 610 516 632 895 611 190 667 740 645 368 714 159 671 483 699 428 699 428 748 388






















44

1.7.9 EAFF Income Statement per Quarter

ESTATE AGENTS FIDELITY FUND

BUDGET FOR THE YEAR ENDING 31 MARCH 2020

BUDGET 2019/20

QUARTERLY TARGETS

QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4

Revenue 157 977 251 62 924 265 31 180 496 32 700 651 31 171 838

Contributions Board 1 911 017 95 551 95 551 1 624 365 95 551

Contributions 1 911 017 95 551 95 551 1 624 365 95 551

Interest 51 873 069 36 780 423 5 036 654 5 027 996 5 027 996

Agent interest 43 294 829 34 635 863 2 892 094 2 883 436 2 883 436

Interest on Investments 7 922 214 1 980 554 1 980 554 1 980 554 1 980 554

Interest Other 656 026 164 006 164 006 164 006 164 006

Other Income 104 193 164 26 048 291 26 048 291 26 048 291 26 048 291

Claims Recoveries 24 000 000 6 000 000 6 000 000 6 000 000 6 000 000

Fair Value Adjustments 44 193 164 11 048 291 11 048 291 11 048 291 11 048 291

36 000 000 9 000 000 9 000 000 9 000 000 9 000 000

Operating costs 139 988 402 34 997 101 34 997 101 34 997 101 34 997 101

Bank Charges 22 898 5 725 5 725 5 725 5 725

Claims Paid 24 000 000 6 000 000 6 000 000 6 000 000 6 000 000

Management Fees 58 488 834 14 622 209 14 622 209 14 622 209 14 622 209

Provision for bad debts 1 144 900 286 225 286 225 286 225 286 225

Interest expense 686 940 171 735 171 735 171 735 171 735

Consumer Education Awareness 6 056 323 1 514 081 1 514 081 1 514 081 1 514 081

Stakeholder Awareness 1 325 968 331 492 331 492 331 492 331 492

Transformation initiatives 6 080 079 1 520 020 1 520 020 1 520 020 1 520 020

Insurance 343 470 85 868 85 868 85 868 85 868

Publications - Agent Magazine 1 831 840 457 960 457 960 457 960 457 960

Consultants fees 572 450 143 113 143 113 143 113 143 113

Legal fees 3 434 700 858 675 858 675 858 675 858 675

36 000 000 9 000 000 9 000 000 9 000 000 9 000 000

Surplus 17 988 848 27 927 165 (3 816 604) (2 296 449) (3 825 263)

45

PART B: PROGRAMMES PLANS

2. PROGRAMME 1: FINANCE AND ADMINISTRATION 1.1. Purpose

The programme seeks to maximise EAAB performance through effective and

efficient management of its resources and systems thereby creating a world-

class regulator.

1.2. Strategic Objectives

SO No

Strategic Objective (s) Objective Statement Sub-Programme(s)

1.1 Provide strategic

management and

support across the

organisation

To provide sound strategic

direction and leadership to EAAB

through facilitation of credible

strategic plans, annual

performance plans and reliable

management of EAAB’s

performance

Office of the CEO

1.2. Ensure good

governance and sound

control environment

To ensure good governance and

a sound control environment for

the department

Finance

Board Secretary

1.3 Ensure EAAB

operations are efficient

and effective

Maximise EAAB performance

through prudent management of

resources

Corporate Services

1.4 Maintain a Stakeholder-

centered organisation.

Improving accessibility, service

levels and general image of the

EAAB.

Customer

Relations

Management

46

1.3. Strategic Plan Objective Annual and Medium Term Targets

Programme Performance Indicator Audited/Actual Performance

Estimated Performance

Planned Performance

Medium-Term Targets (MTEF)

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Strategic Objective 1.1 Provide strategic management and support across the organization

1.1.1 Percentage achievement of EAAB pre-determined strategic objectives

New New New 68% 80% 100% 100% 100% 100%

1.1.2 Percentage alignment of operational plans to the APP

New New New New 100% 100% 100% 100% 100%

1.1.3 Percentage of strategic risk mitigation action plans implemented

New New New New 100% 100% 100% 100% 100%

Strategic Objective 1.2 Ensure good governance and sound control environment

1.2.1 Percentage Implementation of management action plans to address internal and external audit findings

New New New New 100% 100% 100% 100% 100%

1.2.2 Up to date policies and procedures across organization

New New New Consolidated policy register

developed

100%

100%

100% 100% 100%

1.2.3 Compliance to laws and regulations

New New New New 100% 100% 100% 100% 100%

1.2.4 Percentage of Board resolutions implemented

New New New Board Resolution Register in place

100% 100% 100% 100%

100%

47

Programme Performance Indicator Audited/Actual Performance

Estimated Performance

Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Strategic Objective 1.3 Ensure EAAB operations are efficient and effective.

1.3.1 Development and 100% implementation of the skills audit plan

New New New New

Development and implementation of the skills audit plan

70% alignment between requirements and candidate skills




1.3.2 Percentage of implementation of Integrated IT solution

New New New Approved ICT Architecture

Implemented integrated ICT solution

100% compatibility with organisational requirements




Strategic Objective 1.4 Maintain a Stakeholder-centered organisation.

1.4.1 Implementation of EAAB stakeholder management plan

New New New

Approved Stakeholder Management

Plan

100% implementation of the plan


100% implementation

of the plan

100% implementation

of the plan


1.4.2 Percentage rate of stakeholder query resolutions within 48 Hours

85% 83% 90% 85% 100 % 100 % 100 % 100 % 100 %

1.4.3 Number of partnerships SLAs with relevant partners

New New New New 8 10 12 14 16

48

1.4. Programme Performance Indicator Quarterly Targets for 2019/20

Programme Performance Indicator Reporting Period

ANNUAL TARGET

QUARTERLY TARGETS

2019/20 Q1 Q2 Q3 Q4

1.1.1 Percentage achievement of EAAB pre-determined strategic objectives

Quarterly 80% 80% 80% 80% 80%

1.1.2 Percentage alignment of operational plans to the APP

Annually 100% 100% N/A N/A N/A

1.1.3 Percentage of strategic risk mitigation action plans implemented

Quarterly 100% 100% 100% 100% 100%

Strategic Objective 1.2 Ensure good governance and sound control environment 1.2.1 Percentage Implementation of

management action plans to address internal and external audit findings

Quarterly 100% 100% 100% 100% 100%

1.2.2 Up to date policies and procedures across organization

Quarterly 100%

100% 100% 100% 100%

1.2.3 Compliance to laws and regulations Quarterly 100% 100% 100% 100% 100%

1.2.4 Percentage of Board resolutions implemented

Quarterly 100% 100% 100% 100% 100%

Strategic Objective 1.3 Ensure EAAB operations are efficient and effective.

1.3.1 Development and 100% implementation of the skills audit plan Bi -Annually

development and

implementation of the skills audit plan

N/A Development of the skills audit plan

N/A Implementation of the skills

audit plan

49

Programme Performance Indicator Reporting Period

ANNUAL TARGET

QUARTERLY TARGETS

2019/20 Q1 Q2 Q3 Q4

1.3.2 Percentage of implementation of Integrated IT solution

Quarterly Implemented integrated ICT

solution

100% achievement of milestones



Sign off and Handover

Strategic Objective 1.4 Maintain a Stakeholder-centered organisation.

1.4.1 Implementation of EAAB stakeholder management plan

Quarterly 100% implementation

of the plan





1.4.2 Percentage rate of stakeholder query resolutions within 48 Hours

Quarterly 100 % 100 % 100 % 100 % 100 %

1.4.3 Number of partnerships SLAs with relevant partners

Quarterly 8 2 2 2 2

50

3. PROGRAMME 2: COMPLIANCE 2.1 Purpose To ensure that all Estate Agents and Agencies operating in the country are compliant

to all relevant legislations.

2.2 Strategic Objectives

SO No

Strategic Objective (s)

Objective Statement Sub-Programme(s)

2.1 Improve compliance

with the EAA Act

Improve the level of

compliance by Estate Agents

and Agencies through

provision of effective and

efficient registrations,

inspections, audit compliance

and disciplinary processes

and Implement effective

enforcement initiatives aimed

at promoting compliance

Enforcement and

Compliance

2.2 Improve compliance

with the FIC Act

Improve the level of

compliance by Estate Agents

and Agencies through

provision of supervisory

functionalities in order to

comply with FIC Act.

Enforcement and

Compliance

2.3 Reduce number of

illegally trading

Estate Agents and

Agencies

Reduce the number of Estate

Agents and Agencies that

operate illegally through

issuing of FFCs timeously

and effective identification

and prosecution of estate

agents trading illegally.

Enforcement and

Compliance

51

2.3 Strategic Plan Objective Annual and Medium-Term Targets

Programme Performance Indicator

Audited/Actual Performance Estimated Performance

Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Strategic Objective 2.1 Improve compliance with the EAA Act

2.1.1 Number of self- assessment received, evaluated and analyzed (Report issued)

New New New New 1000 1500 1700 1900 2200

2.1.2 Percentage of compliant new registrations processed within 21 days

New New New New 100% 100% 100% 100% 100%

2.1.3 Percentage of compliant renewals processed within 5 days

New New New New 100% 100% 100% 100% 100%

2.1.4 Percentage Disciplinary Hearings held against completed investigations

New New New New 100% 100% 100% 100% 100%

2.1.5 Percentage compliance to turnaround time

New New New New 100% 100% 100% 100% 100%

52



Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 for Disciplinary Hearings

2.1.6 Percentage claims processed against claims received

New New New New 100% 100% 100% 100% 100%

Strategic Objective 2.2 Improve compliance with the FIC Act 2.2.1 Number of FIC

Inspections performed

N/A N/A 110 130 150 170 190 210 230

Strategic Objective 2.3 Reduce number of identified illegally trading Estate Agents and agencies

2.3.1 Percentage of cases investigated against the number reported

New New New New 100% 100% 100% 100% 100%

2.3.2 Percentage of disciplinary outcomes enforced

New New New New 100% 100% 100% 100% 100%

2.3.3 Development of the strategic plan to combat illegal trading

N/A N/A N/A

Conducted Research study to confirm the

statistics

Developed the strategic plan

to combat illegal trading

100% achievement of implementation

plan


plan


plan


plan

53

2.4 Programme Performance Indicator Quarterly Targets for 2019/20

Programme Performance Indicator Reporting

Annual Target

Quarterly Targets

2019/20 Q1 Q2 Q3 Q4

Strategic Objective 2.1 Improve compliance with the EAA Act

2.1.1 Number of self- assessment received, analyzed and evaluation (Report issued)

Quarterly 1000 250 250 250 250

2.1.2 Percentage of compliant new registrations processed within 21 days

Quarterly 100% 100% 100% 100% 100%

2.1.3 Percentage compliant renewals processed against those received

Quarterly 100% 100% 100% 100% 100%

2.1.4 Percentage Disciplinary Hearings held against completed investigations

Quarterly 100% 100% 100% 100% 100%

2.1.5 Percentage compliance to turnaround time for Disciplinary Hearings

Quarterly 100% 100% 100% 100% 100%

2.1.6 Percentage claims processed against claims received

Quarterly 100% 100% 100% 100% 100%

Strategic Objective 2.2 Improve compliance with the FIC Act 2.2.1 No of FIC Inspections

performed Annually 150 - - - 150

Strategic Objective 2.3 Reduce number of identified illegally trading Estate Agents

54


Annual Target

Quarterly Targets

2019/20 Q1 Q2 Q3 Q4 2.3.1 Percentage of cases

investigated against the number reported

Quarterly 100% 100% 100% 100% 100%

2.3.2 Percentage of disciplinary outcomes enforced

Quarterly 100% 100% 100% 100% 100%

2.3.3 Development of the strategic plan to combat illegal trading

Annually

Developed the strategic plan

to combat illegal trading

N/A

N/A

N/A

Developed the strategic plan to combat illegal

trading

55

4. PROGRAMME 3: EDUCATION AND TRAINING 3.1 Purpose

To build capacity for the estate agency sector through training and continuous

professional development.


SO No


3.1 Facilitate increase in

the number of qualified

Estate Agents

Implement the estate

agents training programme

in line with the required

standards of education and

training for estate agency

practitioners


3.2 Ensure continuous

development of the

estate agents

Ensure that all registered

estate agents remain

relevant through

implementation of the

continuous professional

development programme


3.3 Develop and harvest

knowledge in the real

estate market

Position EAAB the

knowledge hub for all real

estate information

Education and Training Corporate Services

56

3.3 Strategic Plan Objective Annual and Medium Term Targets



Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Strategic Objective 3.1 Facilitate increase in the number of qualified Estate Agents

3.1.1 Identified real estate sector skills and competency needs New New New

Completed stakeholder

liaison engagement

SAQA approved

Occupational Qualifications

Implementation of the approved








3.1.2 Increase in percentage of registered Estate Agents with professional designation

New New New New 5% increase

as per audited results

10% increase as per audited results




3.1.3 Increase in percentage Retention rate of Candidate Estate Agents enrolled for PDE 4

New New New Establish a

baseline

5% increase as per audited

results




25 increase as per audited results

3.1.4 Increase in percentage retention rate of Non Principal Estate Agents enrolling for PDE 5

New New New Establish a

baseline

5% increase as per audited

results





3.1.5 Percentage of processed log books within the stipulated timeframes

New New New 100% 100% 100% 100% 100% 100%

57



Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Strategic Objective 3.2 Ensure continuous professional development of the estate agents

3.2.1 Increase in the percentage of Estate Agents who are registered for CPD and have met CPD requirements in full

New New New 45% 55% increase as per audited

results

65% increase


75% increase


85% increase


95% increase


Strategic Objective 3.3 Develop and harvest knowledge in the real estate market

3.3.1 Publications produced per annum (Agent Magazine)

4 4 4 4 4 4 4 4 4

3.3.2 Percentage completion of the information hub project plan for Estate Agents and Agencies

New New New Signed off

library specification

Implemented Virtual library

Access by Estate

Agents and Agencies

Access by Estate

Agents and Agencies

Access by Estate

Agents and Agencies

Access by Estate

Agents and Agencies

3.3.3 Accessibility of the information to the consumers through implementation of communication strategy

New New New

Implemented multiple

communication methods











58



Planned Performance

Quarterly Targets

2019/20 Q1 Q2 Q3 Q4

Strategic Objective 3.1 Facilitate increase in the number of qualified Estate Agents

3.1.1 Identified real estate sector skills and competency needs

Annually SAQA approved Occupational Qualifications

- - - SAQA approved


3.1.2 Increase in percentage of registered Estate Agents with professional designation

Annually 5% increase as per audited results

- - - 5% Increase

increase as per audited results

3.1.3 Increase in percentage Retention rate of Candidate Estate Agents enrolled for PDE 4


- - - 5% increase


3.1.4 Increase in percentage retention rate of Non Principal Estate Agents enrolling for PDE 5


- - - 5% increase


3.1.5 Percentage of processed log books within the stipulated timeframes

Bi annually 100 increase as per audited results

100%

100%

100%

100%

Strategic Objective 3.2 Ensure continuous professional development of the estate agents

3.2.1 Increase in the percentage of Estate Agents who are registered for CPD and have met CPD requirements in full

Annually 55% increase as

per audited results

- - - 55% increase as

per audited results

59


Planned Performance

Quarterly Targets

2019/20 Q1 Q2 Q3 Q4

Strategic Objective 3.3 Develop and harvest knowledge in the real estate market

3.3.1 Publications produced per annum (Agent Magazine)

Quarterly 4 1 1 1 1

3.3.2 Percentage completion of the information hub project plan for Estate Agents and Agencies

Annually Implemented Virtual library

100% achievement of implementation milestones



100% completion of the implementation

3.3.3 Accessibility of the information to consumers through implementation of communication strategy

Quarterly Implemented multiple communication methods

100% implementation against plan

100% implementation against plan

Accessibility of information

Accessibility of information

60

5. PROGRAMME 4: TRANSFORMATION 4.1 Purpose

The purpose of the Transformation programme is to transform the real estate sector

with regards to economic participation of race and the culture of the industry.


SO No


4.1 To increase the number

of youth, PDI, black

women, and people

with disabilities in the

real estate sector

Through the Incubation

programme, increase

the rate of participation

and the success rate of

youth, black women,

people with disabilities

and PDI’s in the real

estate sector.

Transformation


4.2. To implement an

impactful Amnesty

Campaign for estate

agents and agencies.

To ensure the

strengthening of a

compliant real estate

sector by increasing the

number of estate

agencies and agents

who apply for amnesty.

Transformation

Communication

Compliance and

Enforcement

4.3 To ensure the

protection, education

and awareness of

Consumers with regard

to property transactions

Promote Consumer

Education and

awareness and

protection by engaging

other stakeholders in the

property value chain like

finance providers.

Transformation

Communication


4.4 To increase internal and

external transformation

in accordance with

BBBEE, PPPFA, EE,

Ensures that the EAAB

transforms its internal

environment and

practices to ensure

Corporate Services

Transformation

61

SO No


Skills Development,

Property Sector

Charter.

compliance with the

applicable

transformation

legislation

4.5 To develop financial

mechanisms and

incentives for

sustainable

transformation

initiatives.

Develop schemes to

provide financial

incentives to facilitate

the sustainability of

transformation initiatives.

Transformation

Finance

4.3 Sub-Programme Overview

The purpose of the Transformation programme is to:

Drive Transformation both internally at EAAB and externally to ensure

compliance with applicable legislation such as Employment Equity Act

and Broad-Based Black Economic Empowerment and Property sector

charter.

Ensure economic inclusion of the previously disadvantaged individuals

(PDI) in the property sector.

Engage with Public works department to ensure PDI participate in the

property business.

Establish a Real Estate Incubator for small struggling Estate Agencies,

rehabilitation of non-compliant Estate Agencies and empowerment of

youth, woman and persons with disabilities with focus on previously

disadvantaged individuals.

Promote Consumer Education and awareness and protection by engaging

other stakeholders in the property value chain like finance providers.

Cross functional interface with other section to ensure that

transformational agenda is pursued, i.e. reviewing models and initiatives.

62




Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Strategic Objective 4.1 To increase the number of Youth , PDI, black women, people with disabilities and in the real estate sector.

4.1.1 Number of youth intern placed with property industry host employers through the one learner one agency programme trainings.

2298 3100 4000 1000. 2000 4000 6000 8000 10000

4.1.2 Percentage increase in the retention/ success rate of youth intern placed with property industry host employers through the one learner one agency programme trainings.

New

New

New

New 50% retention

rate as per audited results

70% retention rate as per

audited results

90% retention


100% retention


100% retention


4.1.3 Percentage increase of black women (excl. youth category) that have been supported to increase economic participation through principalisation

New

New

New

New 10% 20% 30% 40% 50%

63



Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 4.1.4 Number of

principals established through the Implementation of the Principalisation Programme

new new new

Finalisation of the Principalisation Programme framework

250 300 350 400 450

Strategic Objective 4.2 To implement an impactful Amnesty Campaign for estate agents and agencies 4.2.1 Percentage of

illegally trading Estate Agents rehabilitated as a result of the Amnesty Campaign

N/A N/A N/a

Research study report with respect to illegal trading Estate Agents

100% of applied

granted will be rehabilitated

100%

100%

100% 100%

Strategic Objective 4.3 To ensure the protection, education and awareness of Consumers with regard to property transactions

4.3.1 Number of consumers reached through Radio media campaigns

10 256 000 consumers reached through National Radio media campaigns









4.3.2 Number of consumers reached through print media campaigns

100 000 consumers reached through Print media campaigns





1 000 000? consumers reached through Print media campaigns

1 100 000 consumers reached through Print media campaigns



4.3.3 Number of consumer

N/A N/A 15 6 15 billboards set up in all 9

15 17 19 20

64



Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 education campaigns using Billboards to raise awareness of property transactions and reach over 2million consumers

provinces and over 2millions

Strategic Objective 4.4 To improve internal transformation in accordance with BBBEE, PPPFA, EE, Skills Development, Property Sector Charter.

4.4.1 Implementation of the BBBEE score cards, employment equity, skills development plan and property sector charter

New New New new 100% achievement of the annual target reflected in the plans / scorecards of the different departments

100% achievement of the annual target reflected in the plans / scorecards of the different departments




Strategic Objective 4.5 To develop financial mechanisms and incentives for sustainable transformation initiatives.

4.5.1 Number of implementable developed financial incentive/s for transformation initiatives

New New New Approved framework Signed SLAs Approved plan

100% 100% 100% 100% 100%

65


Performance Indicator Reporting

Period

Medium-Term Targets

Quarterly Targets

2019/20 Quarter 1 Quarter 2 Quarter 3 Quarter 4

Strategic Objective 4.1 To increase the number of Youth, HDI, black women, people with disabilities in the real estate sector. 4.1.1 Number of youth interns placed with property

industry host employers through the one learner, one agency programme training

Quarterly 2000 500 500 500 500

4.1.2 Percentage increase in the retention/ success rate of youth intern placed with property industry host employers through the one learner one agency programme trainings.

Annually 50% retention rate as per audited figures

- - -

50% retention rate as per audited figures

4.1.3

Percentage increase of black women (excl. youth category) that have been supported to increase economic participation through principalisation

Annually 5% - - - 5%

4.1.4 Number of principals established through the Implementation of the Principalisation Programme

Quarterly 250 55 65 65 65

Strategic Objective 4.2: To implement an impactful Amnesty Campaign for estate agents and agencies 4.2.1 Percentage of illegally trading Estate Agents

rehabilitated as a result of the Amnesty Campaign

Quarterly 100% of applied granted will be rehabilitated

100% 100%

100%

100%

Strategic Objective 4.3 To ensure the protection, education and awareness of Consumers with regard to property transactions

4.3.1 Number of consumers reached through Radio media campaigns

Quarterly


4 650 000

4 650 000

4 650 000

4 650 000

66


Period

Medium-Term Targets

Quarterly Targets

2019/20 Quarter 1 Quarter 2 Quarter 3 Quarter 4

4.3.2 Number of consumers reached through print media campaigns

Quarterly


175 000

175 000

175 000

175 000

4.3.3 Number of consumer education campaigns using Billboards to raise awareness of property transactions and reach over 2million consumers

Quarterly

15 billboards set up in all 9 provinces and over 2millions consumers reached – 3 GP, WC, KZN & 1 per province

1GP 1WC 1FS 1 NW

1GP 1WC 1KZN 1EC

1GP 1KZN 1MP

1WC 1KZN 1LMP

Strategic Objective 4.4 To improve internal transformation in accordance with BBBEE, PPPFMA, EE, Skills Development, Property Sector Charter.

4.4.1 Implementation of the BBBEE score cards, employment equity, skills development plan and property sector charter

Annually

100% achievement of internal targets of

each plan/ scorecard.

- - - 100%

Strategic Objective 4.5 To develop financial mechanisms and incentives for sustainable transformation initiatives.

4.5.1 Number of developed implementable financial mechanisms and incentive/s for transformation initiatives.

Quarterly

Establish and start the development of 1 financial incentive/

scheme.

Develop Approved Implement

25% Implement

50%

67

6. PROGRAMME 5: FIDELITY FUND 5.1 Purpose

The Fidelity Fund is the accumulation of financial resources used as a

protection mechanism for property consumers that are defrauded by estate

agents.


SO No


5.2.1 To ensure that the

Fidelity Fund is

financially sustainable

Ensure that the fidelity

fund has sufficient funds

to service/ supply the

demand in claims from

the property consumers.

Finance

5.2.2 To ensure that the

Fund is effectively and

efficiently managed

Ensure that the fund has

the necessary resources

and processes in place

to effectively and

efficiently execute its

mandate.

Finance

5.3 Sub-Programme Overview The fidelity fund is the accumulation of financial resources used as a protection

mechanism for property consumers that are defrauded by Estate Agents.

68




Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Strategic Objective 5.1 To ensure that the Fidelity Fund is financially sustainable.

5.1.1 Percentage growth in Annual Net Asset Value

2.22% 0.095% 0.1% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%

5.1.2 Reviewed and approved investment strategy implemented

N/A N/A N/A N/A

Reviewed Investment

Strategy approved

Implement Implement Implement Implement

5.1.3 Re-insurance of Fidelity fund claims.

New New New Research possible options

Board Approval

Implement Implement Implement Implement

Strategic Objective 5.2 To ensure that the Fund is effectively and efficiently managed.

5.2.1 Percentage of interest receivable from estate agency trust accounts collected within 30 days of the due dates

30% 84% 95% 95% 95% 95% 95% 95% 95%

5.2.2 Percentage of fully compliant claims paid within six months

30% 69% 76% 80% 85% 90% 86% 88% 90%

69



Period

Medium-Term Targets

Quarterly Targets

2019/20 Quarter

1 Quarter

2 Quarter

3 Quarter

4

Strategic Objective 5.1 To ensure that the Fidelity Fund is financially sustainable 5.1.1 Percentage growth in Annual Net Asset Value

Annually 1.25% - - - .1,25

5.1.2 Reviewed and approved investment strategy implemented Annually

Investment Strategy approved

Approved

Implemented

Implemented

Implemented

5.1.3 Re-insurance of Fidelity fund claims.

Bi Annually New Insurance

Investigated and approved

-

Investigate

possible option

- Investiga

te & Approve

Strategic Objective 5.2: To ensure that the Fund is effectively and efficiently managed 5.2.1 Percentage of interest receivable from estate agency

trust accounts collected within 30 days of the due dates Monthly 95% 95% 95% 95% 95%

5.2.2 Percentage of fully compliant claims paid within six months

Bi Annually 85% - 85% - 85%

70

7. PROGRAMME 6: CONRIBUTION TO MEDIUM TERM STRATEGIC FRAMEWORK

6.1 Purpose

Contribute to the MTEF objectives of the ministry by promoting and implementing

government-wide priorities.


SO No


6.1 Transactional Support -

estate agents and

agencies operating and

supporting the affordable

and subsidized housing

areas

To support the

development of a functional

and equitable residential

property market by

increasing the level of

support provided for

entering and transacting in

the affordable and

subsidized housing areas.

Education and

Training

Transformation

Compliance

6.2 Ensure Bi-annual

data/information on

industry trends and

analysis are available

Conduct research and

publish statistical

information on the

affordable and subsidized

housing market.

Education and

Training

Transformation

71

6.3 Strategic Plan Objective Annual and Medium Term Targets



Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Strategic Objective 6.1 To provide transactional support through developing estate agents for the affordable and subsidized housing

areas

6.1.1

Percentage increase of estate agents and agencies operating in the subsidized and affordable housing areas.

N/A N/A 10% 10% 10% 5% 5% 5% 5%

Strategic Objective 6.2 Ensure Bi-annual data/information on industry trends and analysis are available

6.2.1 Number of reports on trends in the affordable property market.

New or N/A New or

N/A New or

N/A New or N/A

1 Annual Report

1 Annual Report

1 Annual Report

1 Annual Report

1 Annual Report

6.2.2 Distribution of sales in the affordable housing marketed and monitored

New or N/A New or

N/A New or

N/A New or N/A

Bi-annual report & monitoring





6.2.3 Annual trend analysis report indicating increase in transaction of properties valued less than

New or N/A New or

N/A New or

N/A New or N/A

1 Annual Report

1 Annual Report

1 Annual Report

1 Annual Report

1 Annual Report

72



Planned Performance


2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 R500000



Period

Medium-Term Targets

Quarterly Targets

2019/20 Quarter

1 Quarter

2 Quarter

3 Quarter

4

Strategic Objective 6.1 To provide transactional support through developing estate agents for the affordable and subsidized housing areas 6.1.1 Percentage increase in estate agents operating in the

subsidized and affordable housing areas.

Annually

10% increase in estate agents operating

2.5% 2.5% 2.5% 2.5%

Strategic Objective 6.2: Ensure Bi-annual data/information on industry trends and analysis are available 6.2.1 Number of reports on trends in the affordable property

market. Annually 1 Annual Report - - 1 report at year

end

6.2.2 Distribution of sales in the affordable housing marketed and monitored

Bi-annually 2 Bi-annual report & monitoring

1 report monitor 1 report

6.2.3 Annual trend analysis report indicating increase in transaction of properties valued less than R500000

Annually 1 Annual Report 1 report

73

PART C: LINKS TO OTHER PLANS

1.1. Department of Human settlement housing initiatives

The EAAB seeks to empower its own employees in terms of offering Department of

Human settlement products such as the Finance Linked Individual Subsidy

Programme (FLISP) and affordable housing. This initiative will operate through

interactions with NEHAWU. EAAB employees will be encouraged to own their own

homes and, consequently, to receive benefits from Department of Human

settlements such as, for instance, the grant of a subsidy to assist homeowners who

do not qualify to obtain a mortgage loan from a financial institution. Homeowners

earning between R3 500 and R15 000 per month may qualify to receive a subsidy

from the DHS, through the FLISP programme, and also secure assistance in the

obtaining of a mortgage loan.

1.2. Title Restoration Project

The Title Restoration Project continues to make inroads into eradicating the

registration backlog, and providing beneficiaries under the Human settlements

Programme with title deeds. To this end, the EAAB continues its support to the

project by availing project management and secretariat support to the project,

understanding that there are decided gains to be had for the Estate Agency Affairs

Board (EAAB). Through the success of the Title Restoration Project, this initiative will

serve as a catalyst in expanding and transforming the Real Estate Sector by:

Firstly, giving estate agents access to “Dead Capital” currently located in the

‘Township’ and ‘Secondary’ Markets; and

Secondly, affording registered estate agents, an opportunity to service those who

are new to the residential property market.

1.3. Transactional Support Initiative

Affordable housing markets are often perceived as weak and risky, but when

compared to the entire housing market, the affordable market has in the last seven

years been out-performing the top end of the market (CAHF 2014). The affordable

74

housing market presents major opportunities in terms of untapped equity, and for

including more people into the formal housing market. For the nine metropolitan

municipalities in South Africa, the percentage of affordable properties range from

44% to 73% of the total housing stock (CAHF 2014). The affordable housing market

segment is now an area of potential business growth, as this segment serves as a

vital feeder to the growing middle class in South Africa. Over the past decade, the

provision of housing loans to this market segment has proven to be both sustainable

and commercially viable.

For real estate agents to access this untapped opportunity within the affordable

housing market (‘Dead Capital’) and ensure that lower income households are able

to enter the housing market, the Estate Agency Affairs Board (EAAB) seeks to

establish an initiative to provide transactional support for, in particular, buyers and

sellers in the affordable housing market. To this end, the EAAB would want to ensure

that it takes strategic-level actions to ensure that transactional support becomes a

reality for the many people engaging in transactions at the lower end of the market.

The objectives of this initiative would be to support the development of a functional

and an equitable residential property market. It is also important to consider the

mandate of the EAAB and to ensure that a transactional support initiative aligns with

its expanded (developmental) mandate. Key to this initiative would be to specifically

support persons in the affordable housing market to enable them to enter and

transact within the market.

More broadly, creating better public access to market transaction information in the

residential sector is key to avoiding market information asymmetries, which tend to

be particularly marked when moving into an under-developed market segment.

Similarly there should be an overall focus on reducing transaction costs to improve

access and affordability.

It is useful to also recognise what transactional support would not include, especially

for the EAAB and considering their role and functions. The EAAB cannot be involved

in every transaction nor provide individual consumer support. The role of the EAAB

within the affordable housing market would be to contribute to creating an enabling

environment for transacting within this sub-market by providing strategic transactional

support.

75

The objectives of this initiative would be to support the development of a functional

and an equitable residential property market. It is also important to consider the

mandate of the EAAB and to ensure that a transactional support initiative aligns with

its expanded (developmental) mandate. Key to this initiative would be to specifically

support persons in the affordable housing market to enable them to enter and

transact within the market.

More broadly, creating better public access to market transaction information in the

residential sector is key to avoiding market information asymmetries, which tend to

be particularly marked when moving into an under-developed market segment.

Similarly there should be an overall focus on reducing transaction costs to improve

access and affordability.

It is useful to also recognise what transactional support would not include, especially

for the EAAB and considering their role and functions. The EAAB cannot be involved

in every transaction nor provide individual consumer support. The role of the EAAB

within the affordable housing market would be to contribute to creating an enabling

environment for transacting within this sub-market by providing strategic transactional

support.

As a supporting component, a knowledge repository is proposed. The aim of such a

repository would be to ensure that consumers and professionals are able to access

the knowledge products created through the initiative. A knowledge exchange

platform will serve to centralise useful data, information and advice in one place.

Many organisations can contribute their knowledge products and links to their data

platforms. The aim of the knowledge repository and portal would be to ensure that

this information is easily accessible to a broader audience over a longer time period.

Another objective would be to link enquirers to knowledge providers in a more

efficient

76

PART D: ANNEXURES

Annexure A

Materiality Framework

Broad Framework for the Estate Agency Affairs Board

The Estate Agency Affairs Board will be dealing with this framework under two main

categories, i.e. quantitative and qualitative aspects.

Quantitative Aspects

Materiality level

The materiality level is set at R366 266 which is ¼% of Turnover. .

Motivation

EAAB has high volume of transactions at low value. It is therefore for this purpose

that the materiality level is set based on an income statement measure. This

conservative materiality level will be used for all classes of transactions.

Factors Considered

The Estate Agency Affairs Board assesses the level of a material loss of R366 266as

¼% of gross revenue. The Estate Agency Affairs Board took into account factors that

include:

Nature of EAAB’s Business

To maintain and promote the standard of conduct of estate agents, having due

regard to public interests and regulate the activities of estate agents.

To proficiently discharge its statutory regulatory function through the

provision of a consistently effective service to estate agents and stakeholders

alike.

Although revenues and profits are not the main objective, the current economic

climate and the downturn in the property sector has meant that the EAAB had to

focus on its revenues and operating expenses. EAAB is a self-funded public entity

and therefore relies on the generation of revenue to sustain its activities and maintain

its going-concern.

77

Quality Aspects

Materiality is not confined to the size of the entity and the elements of its financial

statements.

The Estate Agency Affairs Board recognizes that misstatements that are larger either

individually or in the aggregate may affect a “reasonable” user’s judgment. Further,

misstatements may also be material on qualitative grounds. These qualitative

grounds include amongst others:

Unusual transactions entered into that are not of a repetitive nature and are

disclosed purely due to the nature thereof due to knowledge thereof affecting

the decision making of the user of the financial statements.

Transactions entered into that could result in reputational risk of Estate

Agency Affairs Board

Any fraudulent or dishonest behaviour of any officer or staff of Estate Agency

Affairs Board.

Procedures/processes required by legislation or regulation (e.g. PFMA and

the Treasury Regulations).

Unauthorized, irregular or fruitless and wasteful expenditure.

Items of a non-financial nature, which would impact on the continued

operation and deliverables of the Estate Agency Affairs Board.

78

ANNEXURE B

RISK MANAGEMENT PLAN

Risk Ref Numb

Programme Strategic objective

Risk Description

Inherent Risk

Rating

EAAB Action Plan Risk Owner

GR1

Compliance

Programme

To improve

compliance with

the Estate

Agency Affairs

Act and Financial

Intelligence Act.

Non-regulation of estate agents and non - enforcement of Estate Agency Act and Financial Intelligence Centre Act

25 1. Investigate segregation of duties for validation of documents and " accepting" of documents on SAP. 1.1. Recommend for Property Practitioner Bill that transferring attorneys do not pay commissions to illegal estate agents. 1.2. Research on illegal trading Estate Agents to be performed in the 2017/18 financial period. An enforcement strategy will be created from the Research outcomes. This includes the regularisation of non-compliant Estate Agents. 2. Develop a comprehensive compliance

EM: Compliance 31 March 2019

79

checklist against the Act. 3. Make recommend for Property Practitioner Bill that all categories of persons rendering estate agency services be included who are not yet included in the Act.

GR2 Education and Training programme

To ensure that EAAB operations are efficient and effective.

Deficient financial management systems.

25 1. Review & document business processes to inform development of a ICT Business case to enhance finance applications. 2.1. Amend debt collection policy in accordance with change to accrual policy and assign role of debt collection ( membership, licence & CPD fees) and develop collection procedures. 2.2. Establishment of Litigation & Recoveries unit (recoveries of claims) 3. Develop responsibility matrix for roles and responsibilities in finance. 4. Develop Standard

CEO and CFO

31 March 2019

80

operating Procedures for finance. 5. Submit a motivation to the Board for capacitation of finance. 6. Ensure budgets are developed linked to deliverables and KPI's. 6.1. Submission the Department Human Settlements to request a grant from Treasury as a S 3A Public Entity 7. Establish a register for fruitless expenditure.

GR3 Administration

Programme

To build capacity of key stakeholders and professionalise the Estate Agency Sector.

Inefficient implementation and monitoring of training regulations.

20 1. Review & document business processes to inform development of a ICT Business case to enhance finance applications. 2.1. Amend debt collection policy in accordance with change to accrual policy and assign role of debt collection ( membership, licence & CPD fees) and develop collection procedures. 2.2. Establishment of Litigation & Recoveries unit

CEO and CFO

01 December 2018

81

(recoveries of claims) 3. Develop responsibility matrix for roles and responsibilities in finance. 4. Develop Standard operating Procedures for finance. 5. Submit a motivation to the Board for capacitation of finance. 6. Ensure budgets are developed linked to deliverables and KPI's. 6.1. Submission the Department Human Settlements to request a grant from Treasury as a S 3A Public Entity 7. Establish a register for fruitless expenditure.

82

GR4 Fidelity Fund To ensure that the Fidelity fund is financially stable.

Inadequate management /depletion of the Fidelity Fund

25 1. Review and ensure adherence to National Treasury policy on investments. 2. Set prudential limits on investments. 3. Incorporate delegations for investment into the Delegation of Authority policy. 4. Review current expenses claimed from the Fund to ensure that they are not operational and in compliance with the Act. 5. Develop & implement a SoP whereby all claims paid are forwarded to the Legal Technical Analyst and reported to Exco.and Audit Committee 6. Make recommendation for Property Practitioner Bill that limits be set for claim against the Fund 6.1. Instituting interventions with Payprop to reduce risk of misappropriation of property consumer deposits. 7. Educate the public as per awareness programme


01

December 2018

83

on the purpose of the Fund. 8. Implementation of the accrual basis for accounting ensuring outstanding fees are invoiced and followed up on. 9. Initiate criminal charges post disciplinary process for those Estate Agencies who do not submit Audit Reports to declare interest earned on the trust accounts. 10. Make recommendation for Property Practitioner Bill that claims can only be processes for estate agents who are registered 11. Make recommendation for Property Practitioner Bill that annual fees are proportionate to revenue

GR5 Administration

Programme


Inadequate ICT management and governance

20 1 & 3.2 Update IT strategy as per outcome of business process review. 2. Update BCP and conduct tests 3.1. Finalisation of business process review. 3.3. Develop a business

Executive: Corporate services

01 December

2018

84

case per application. 3.4. Develop specifications per application. 4. Internal audit to verify control environment. 5. Investigate segregation of duties between security, applications, support personnel.

GR6 Transformation

To ensure that the Estate Agency sector and Property Industry is transformed.

Inadequate focus on government-wide priorities

20 1. Facilitating job fund application process for financial support. 2. Implement service centres in affordable housing areas enabling property consumers to engage with estate agents. 2.1. Engage with DPW and Gauteng Department of Infrastructure Development to secure mandate to dispose/ manage properties to emerging estate agencies who have neem through the Principalisation programme

Executive Manager : Special Projects 01 December 2018

85

GR7 All programmes


Inefficient performance information system.

25 1. Review of 2018/19 indicators by internal auditors to ensure the indicators are smart. 2 to 4. Review the data collection processes of performance information. Consider the following: - monthly submission ( instead of current quarterly submission ) of evidence to Risk & Strategy Department so that evidence can be verified timeously and differences resolved; - Executive Managers should sign off on performance achieved for the month and the accompanying evidence; - Develop process and tools for recording of evidence from Divisions and resolution of disputes; - Accountability of accuracy of performance information should reside with respective Divisions and the role of Risk & Strategy Departments will be to verify information submitted

Executive Committee 01 December 2018

86

to it and highlighting discreprencies. - Develop a process to record changes in performance information data due to corrections/ amendments to prior quarter results. 5.1. Implement disciplinary code for non-conformance to Performance Information Framework. 5.2. Pay performance bonuses after audit of performance information to link the payment to verified achievements.

GR8 All programmes


Fraud and corruption

20

1. Enhancement of access controls to ICT systems ( alignment of job description, processes and DoA). 2. Update and implement the of fraud prevention plan. 3. Identify gaps in segregation of duties through business process review. 4.Implementation of the Declaration of Interest

87

policy to identify any conflicts with the Boards operations and report findings to the Audit Committee. 5. Implement a gift register for staff to disclose all gratuities received.

GR9 Administration

Programme


Inadequate Human resource management

16 1. Identification of key positions and preparation and implementation of a succession plan. 2. Train management on the Labour Relations Act to implement consequence management. 3.1. Finalisation of Organisational Design and Migration exercise to ensure that the organogram is amended to be line with the capacity requirements of EAAB. 3.2. Implementation of the Organisational Design and Migration plan.

EM: Corporate Services 31 December 2018

88

GR10 Administration

Programme


Ineffective governance to ensure accountability, fairness & transparency

25 1. Filling of senior vacant positions after completion of organisation design and migration process. 2. Update of Risk management policy and development of appetite statements. 3. Implementation of the Declaration of Interest policy to identify any conflicts with the Boards operations and report findings to the Audit Committee. 4. Develop an ethics policy which states standards of conduct expected in areas where improper activities could damage the company's reputation. 5. Conduct a climate survey to determine root cause of staff dissonance

EM: Corporate Services 31 December 2018

89

Annexure C 1.1 Strategic Plan objective – Provide strategic management and support across the organization.

Indicator No & Title 1.1.1 Percentage achievement of EAAB pre-determined strategic objectives

Short definition Performance information

Purpose/importance Improve performance of pre-determined objectives set in the Annual performance plan

Source/collection of data

Quarterly “business matrix” reports approved by Board

Method of calculation

(Number of pre-determined objectives achieved/Number of pre-determined objectives) *100

Data limitations None

Type of indicator Strategic Output Goal indicator

Calculation type Percentage

Reporting cycle 1st of April to 31st March

New indicator Yes

Desired performance

100% achievement on pre-determined objectives

Indicator responsibility

Executive Committee

Indicator No & Title 1.1.2 Percentage alignment of operational plans to the APP

Short definition Departmental business plans

Purpose/importance Align organizational performance to departmental performance


Annual departmental business reports


(Number of KPI’s as per business plan aligned to APP/total Number of KPI’s in the business plan) * 100





New indicator Yes

Desired performance

100% achievement on alignment of business plans to APP


Executive Committee

Indicator No & Title 1.1.3 Percentage of strategic risk mitigation action plans implemented

Short definition Risk Management plan

Purpose/importance Mitigation of top ten strategic risks/increase the likelihood of achievement of organizational strategic objectives.


Quarterly risk reports


Number of implemented mitigation action plans / Total number of mitigation action plans identified

90





New indicator Yes

Desired performance

100% of risks identified rated green


Executive Committee

1.2 Strategic Plan Objective – Ensure good governance and sound control environment

Indicator No & Title 1.2.1. Percentage implementation of management action plans to address internal and external audit findings

Short definition Audit outcome

Purpose/importance To improve the integrity of financial reports, control environment and improved the integrity of performance information reports


Internal Audit Reports and AGSA Management Report


(Total number of findings resolved within specified timeframes / Total number of audit findings)*100

Data limitations AGSA Management report is finalized after year-end

Type of indicator Strategic Outcome Goal indicator

Calculation type Statement on outcome


New indicator Yes

Desired performance

Unqualified audit opinion


Executive Committee

Indicator No & Title 1.2.2. Up to date policies and procedures across organization

Short definition Consolidated policies register

Purpose/importance To improve compliance to legislation and best practice


Policy register


( Number of policies reviewed and approved / number of policies due for review as per the policy register)*100





New indicator Yes

Desired performance

100% of policies as per the policy register are up to date and approved


Executive Committee

91

Indicator No & Title 1.2.3 Compliance to laws and regulations

Short definition Compliance to statutory requirements

Purpose/importance To improve compliance to laws and regulations


Compliance universe register


(Number of laws and regulations complied with as per compliance universe / Total number of laws and regulation as per compliance universe) *100





New indicator Yes

Desired performance

Approved compliance framework document



Indicator No & Title 1.2.4 Percentage of Board resolutions implemented

Short definition Board resolutions

Purpose/importance To improve the achievement of strategic objectives


Board resolution register/ Board and Committee meetings


(Number of Board resolutions implemented)/Total number of Board resolutions approved)*100





New indicator Yes

Desired performance

100% of Board resolutions are implemented


Chief Executive Officer

1.3 Strategic objective – Ensure EAAB operations effective and efficient

Indicator No & Title 1.3.1 Development and 100% implementation of the skills audit plan

Short definition Efficient and effective staff

Purpose/importance To improve organizational performance


Skills audit report


development and implementation of the skill audit plan



Calculation type Plan developed


New indicator Yes

92

Desired performance

100% of positions required for skills audit are completed


EM: Corporate services

Indicator No & Title 1.3.2 Percentage of implementation of Integrated IT solution

Short definition ICT system overhaul

Purpose/importance To improve the processing of applications and transactions within the system.


ICT system project implementation


(Number of project tasks completed)/ (Total number of project tasks)*100



Calculation type Percentage of project completion


New indicator Yes

Desired performance

100% of project implementation


EM: Corporate services

1.4 Maintain a Stakeholder – centered organization

Indicator No & Title 1.4.1 Implementation of EAAB stakeholder management plan

Short definition Stakeholder management plan

Purpose/importance To improve stakeholder relations and support to EAAB activities and projects


Stakeholder management plan and implementation source documents


(Number of stakeholder tasks implemented)/Total number of tasks per stakeholder plan)


Type of indicator Strategic output Goal indicator



New indicator Yes

Desired performance

100% of stakeholder implementation

93

Indicator No & Title 1.4.2 Percentage rate of stakeholder query resolutions within 48 Hours

Short definition Query resolution within 72 hours

Purpose/importance To improve customer service to the Estate Agency


QMNS report


(Number of queries resolved)/ (Total number of queries received from public)*100


Type of indicator Strategic outcome goal indicator



New indicator No

Desired performance

100% queries resolved


EM; Corporate services

Indicator No & Title 1.4.3 Number of partnerships SLAs with relevant partners

Short definition Stakeholder satisfaction

Purpose/importance To improve collaboration, stakeholder relations and support to EAAB activities and projects


Number Signed service level agreements in place


number of singed SLA with relevant partners


Type of indicator Strategic outcome goal indicator



New indicator Yes

Desired performance

8 signed SLAs with relevant partners


EM; Corporate services

94

2.1 - Improve compliance to the EAA Act

Indicator No & Title 2.1.1 Number of self- assessment received, evaluated and analyzed (Report issued)

Short definition N/A

Purpose/importance Improve Compliance to Estate Agency Affairs Act


Self-assessment reports


Number of self-assessment reports issued

Data limitations Self-assessment sample is not necessary representative of population




New indicator Yes

Desired performance

10% reduction on Annual basis


Executive Manager-Enforcement & Inspections

Indicator No & Title 2.1.2 Percentage of compliant new registrations processed within 21 days

Short definition New registrations

Purpose/importance Compliance to Estate Agency Affairs Act.


Download reports from the SAP system . New registrations and New applications reports from SAP.


(Number of compliant new registrations process within 21 days)/(Total number of compliant new registrations received) * 100

Data limitations The system needs to include data of compliancy and not rely on date received

Type of indicator Strategic output objective indicator


Reporting cycle Quarterly

New indicator Yes

Desired performance

100% of compliant new registrations processed against those received


Compliance Executive

95

Indicator No & Title 2.1.3 Percentage of compliant renewals processed received within 5 days.

Short definition Renewals

Purpose/importance Compliance to Estate Agency Affairs Act.


Download report from the SAP system. Renewals and New applications reports from SAP.


(Number of compliant renewals processed within 5 days)/(Total number of compliant renewals received)* 100

Data limitations The system needs to include data of compliancy and not rely on date received

Type of indicator Strategic objective indicator



New indicator Yes

Desired performance

100% of compliant renewals processed against those received


Compliance Executive

Indicator No & Title 2.1.4 Percentage Disciplinary Hearings held against completed investigations

Short definition Public complaint reported cases

Purpose/importance To improve compliance to EAAct


SAP Download


(Number of Disciplinary Hearings held)/ Total number of completed investigations)*100


Type of indicator Strategic output objective


Reporting cycle 1st April to 31st March

New indicator Yes

Desired performance

100% of the reported cases investigated


Compliance and Enforcement Executive

Indicator No & Title 2.1.5. Percentage compliance to turnaround time for Disciplinary Hearings

Short definition Disciplinary Hearings



SAP Download


(Number of Disciplinary Hearings completed within the expected turnaround times/ Total number of Disciplinary hearings completed)*100





96

New indicator Yes

Desired performance

100% of Disciplinary hearings completed within the expected turnaround times.



Indicator No & Title 2.1.6 Percentage claims processed against claims received

Short definition Claims processed

Purpose/importance To improve property consumers protection for Estate Agents


SAP Download


(Number of claims received and processed)/(Number of claims received)*100




Reporting cycle 1st April to 31st Marc

New indicator Yes

Desired performance

100% of cases received were processed



2.2 Strategic objective – Improve compliance with FIC Act

Indicator No & Title 2.2.1 Number of FIC inspections performed.

Short definition Financial Intelligent Centre Act inspections

Purpose/importance To monitor compliance of Financial Intelligent Centre Act


Reports received from inspectors


List of the number of inspections reports received from inspectors



Calculation type Number


New indicator No

Desired performance

150 inspections performed



97

2.3 Reduce the number of illegally trading Estate Agents or Agency

Indicator No & Title 2.3.1 Percentage of cases investigated against the number reported

Short definition Legal compliant cases

Purpose/importance Improve compliance to EAAct


SAP report download


(Number of public complaint cases investigated and reported)/(Total number of cases reported) *100


Type of indicator Strategic output objective indicator



New indicator Yes

Desired performance

100% of cases reported are investigated



Indicator No & Title 2.3.2 Percentage of Disciplinary outcomes enforced

Short definition Disciplinary hearings



SAP repot down load


(Number of cases with disciplinary outcomes enforced)/(Total number of disciplinary outcome cases)*100





New indicator Yes

Desired performance

100% of Disciplinary outcome cases enforced



Indicator No & Title 2.3.3 Development of the strategic plan to combat illegal trading

Short definition Illegally trading Estate Agents/Agencies



Strategic plan to combat illegal trading


Developed and approved strategic plan to combat illegal trading


Type of indicator Strategic objective output indicator


Reporting cycle Annually

New indicator Yes

98

Desired performance

1 Research paper completed and acknowledged by the Board



3.1 Strategic objective - Facilitate increase in the number qualified Estate Agents

Indicator No & Title 3.1.1 Identified real estate sector skills and competency needs

Short definition Sector skills and competency

Purpose/importance To build capacity of practicing Estate Agents and comply with SAQA standards.


SAQA approved document


SAQA approved Occupational Qualifications




Reporting cycle 1st April-31st March

New indicator No

Desired performance

1 SAQA approval document completed


Education and Training Executive Manager

Indicator No & Title 3.1.2 Increase in percentage of registered Estate Agents with professional designation

Short definition PDE



SAP Download


(Number Registered Estate Agents with professional designation)/ Total number of Registered Estate Agents) *100





New indicator Yes

Desired performance

100% Registered Estate Agents with professional designation



99

Indicator No & Title 3.1.3 Increase in percentage Retention rate of Candidate Estate Agents enrolled for PDE 4

Short definition PDE 4



SAP Download


(Number of Candidate Estate Agents enrolled for PDE 4 and retained)/ Total number of Candidate Estate Agents) *100





New indicator Yes

Desired performance

100% of Candidate Estate Agents enrolled for PDE 4 and retained.



Indicator No & Title 3.1.4 Increase in percentage retention rate of Non Principal Estate Agents enrolling for PDE 5

Short definition PDE 5



SAP Download


(Number of Candidate Estate Agents enrolled for PDE 5 and retained)/ Total number of Candidate Estate Agents) *100





New indicator Yes

Desired performance

100% of Candidate Estate Agents enrolled for PDE 5 and retained.



Indicator No & Title 3.1.5 Percentage of processed log books within the stipulated timeframes

Short definition Logbooks



SAP Download


(Number of Logbooks completed within a prescribed time frame)/ Total number of Logbooks completed) *100




100


New indicator Yes

Desired performance

100% of Logbooks completed within the prescribed time period..



3.2 Strategic objective – Ensure continuous Professional development of Estate Agents

Indicator No & Title 3.2.1 Increase in the percentage of Estate Agents who are registered for CPD and have met CPD requirements in full

Short definition CPD



SAP Download


(Number of Estate Agents registered for CPD and have met CPD requirements)/ ( Total number of Estate Agents who have registered for CPD) *100





New indicator Yes

Desired performance

100% of Estate Agents are registered for CPD have met CPD requirements.



3.3 Develop and Harvest knowledge in the Real Estate

Indicator No & Title 3.3.1 Publications produced per annum (Agent Magazine)

Short definition Agent magazine

Purpose/importance To communicate industry knowledge to Estate Agents


Agent magazine published


Number of Agent magazine published




Reporting cycle 1st April to 30th March

New indicator Yes

Desired performance 4 magazines per annum


Corporate services Executive

101

Indicator No & Title 3.3.2 Percentage completion of the information hub project plan for Estate Agents and Agencies

Short definition Information hub/Library

Purpose/importance To provide a knowledge hub for industry players and the public in general.


Project plan for the implementation of Virtual Library,


(Number of tasks implemented per project plan)/(Number of tasks per project)*100





New indicator Yes

Desired performance 100% completion of project plan to implement a virtual library


Corporate services Executive

Indicator No & Title 3.3.3 Accessibility of the information to the consumers through implementation of communication strategy

Short definition Information hub/Library

Purpose/importance To provide a knowledge hub for Property consumers.


Communication strategy for Property consumers


(Number of tasks implemented per communication strategy)/(Total number of tasks per communication strategy)*100





New indicator Yes

Strategic Objective 4.1: To increase the number of Youth, PDI, black women,

people with disabilities and in the real estate sector.

Indicator No & Title 4.1.1 Number of youth intern placed with property industry host employers through the one learner one agency programme trainings.

Short definition Through the Incubation programme, increase the rate of participation and the success rate of youth, black women, people with disabilities and PDI’s in the real estate sector.

Purpose/importance Exposure and inclusion of PDI into the real estate sector


External database (One Learner Excel spreadsheets)


Number of applications of PDI received and placed in training



Calculation type Number of applications received


102

New indicator Yes

Desired performance

Achievement of targeted numbers for the designated period


Transformation & Education and Training

Indicator No & Title 4.1.2 Percentage increase in the retention/ success rate of youth intern placed with property industry host employers through the one learner one agency programme trainings..

Short definition Improvement in participation and retention of PDI





(Number of youth who completed the training and were retained/Total number of youth who completed the training) *100



Calculation type Percentage of retention rate


New indicator Yes

Desired performance

50% retention rate


Transformation & Education and Training

Indicator No & Title 4.1.3 Percentage increase of black women (excl. youth category) that have been supported to increase economic participation through principalization

Short definition Focus on participation of black women in the programme





(Number of black women in participation during current period - Number of black women in participation during previous period / Total number of women in participation during previous period) *100



Calculation type Percentage increase of black women


New indicator Yes

Desired performance

5% increase in participation of black women


Transformation

Indicator No & Title 4.1.4 Number of principals established through the Implementation of the Principalisation Programme

Short definition Focus placed on Estate agent status upgrade to Principal status


103


SAP Download


No of principals established through the principalisation programme



Calculation type number


New indicator Yes

Desired performance

250 principals established through the principalisation programme


Transformation

Strategic Objective 4.2: To implement an impactful Amnesty Campaign for estate agents and agencies

Indicator No & Title 4.2.1 Percentage of illegally trading Estate Agents rehabilitated as a result of the Amnesty Campaign

Short definition To ensure the strengthening of a compliant real estate sector by increasing the number of estate agencies and agents who apply for amnesty.

Purpose/importance Improvement in compliance within the real estate sector


SAP Download


(Number of estate agents rehabilitated/Total number of estate agents who applied to be rehabilitated)*100



Calculation type Percentage of amnesty applications finalised


New indicator Yes

Desired performance

100% of applications granted will be rehabilitated


Transformation

Strategic Objective 4.3: To ensure the protection, education and awareness of Consumers with regard to property transactions

Indicator No & Title 4.3.1 Number of consumers reached through Radio media campaigns

Short definition Creating awareness of services offered by the EAAB to the general public via Radio

Purpose/importance Enhancement in awareness of campaigns related to the EAAB as a regulatory board of the real estate sector


Radio station listenership report


Study report with respect to the number of listenership on different national radio stations



Calculation type Number of consumers reached through Radio

104


New indicator Yes

Desired performance

Achievement of targeted number for the designated period


Communication

Indicator No & Title 4.3.2 Number of consumers reached through print media campaigns

Short definition Creating awareness of services offered by the EAAB to the general public through print media campaigns



Number of publications distributed


Study report with respect to the number of different publications distributed



Calculation type Total number of different publications distributed


New indicator Yes

Desired performance



Communication

Indicator No & Title 4.3.3 Number of consumer education campaigns using Billboards to raise awareness of property transactions and reach over 2million consumers

Short definition Number of Billboards



Number of Billboards


Number of billboard placed



Calculation type Total number of billboard done


New indicator Yes

Desired performance



Communication

105

Strategic Objective 4.4: To improve internal transformation in accordance with BBBEE, PPPFA, EE, Skills Development, and Property Sector Charter.

Indicator No & Title 4.4.1 Implementation of the BBBEE score cards, employment equity, skills development plan and property sector charter

Short definition Improving compliance of the entity to various statutory and regulatory pronouncements

Purpose/importance Maintaining adherence to various statutory and regulatory pronouncements


Internal reports concerning compliance


Study reports with respect to achievement of scorecards of different departments in terms of BBBEE, PPPFA, EE, Skills Development, Property Sector Charter.





New indicator Yes

Desired performance

100% achievement of the annual target reflected in the plans and scorecards of the different departments


Transformation & Corporate Services

Strategic Objective 4.5: To develop financial mechanisms and incentives for sustainable transformation initiatives.

Indicator No & Title 4.5.1 Number of implementable developed financial incentive/s for transformation initiatives

Short definition Development of financial mechanisms and incentives required to achieve sustainable transformation initiatives.

Purpose/importance Achievement of sustainable transformation initiatives with no hindrances to the financial well-being of the entity in the long-term


Financial mechanisms and incentives for transformation initiatives document


Developed, approved and implemented financial mechanisms and incentives for transformation initiatives



Calculation type Framework and Plan document


New indicator Yes

Desired performance

Approved framework and plan


Transformation & Corporate Services

106

Strategic Objective 5.1: To ensure that the Fidelity Fund is financially

sustainable.

Indicator No & Title 5.1.1 Percentage growth in Annual Net Asset Value

Short definition Improvement in the Annual Net Asset Value of the Fidelity Fund

Purpose/importance To ensure financial sustainability of the Fidelity Fund.


Financial management Reports


(Current Net Asset Value – Previous Net Asset value)/ Previous Net Asset Value)*100





New indicator Yes

Desired performance

Achievement of 1.25% in growth to the Annual Net Asset Value



Indicator No & Title 5.1.2 Reviewed and approved investment strategy implemented

Short definition Investment Strategy

Purpose/importance To ensure financial sustainability of the Fidelity Fund


Investment strategy has quarterly deliverables


1 Completed and approved Investment strategy





New indicator Yes

Desired performance

Approved Investment Strategy



Indicator No & Title 5.1.3 Re-insurance of Fidelity fund claims

Short definition Limiting total losses that may result from claims on the Fund

Purpose/importance To ensure financial sustainability of the Fidelity Fund


Research commissioned by EAAB


Re-insurance option investigated and approved by the board, minutes of meetings.



Calculation type None


New indicator Yes

Desired Board Approval on chosen option

107

performance


Finance

Strategic Objective 5.2: To ensure that the Fund is effectively and efficiently managed.

Indicator No & Title 5.2.1 Percentage in interest receivable from estate agency trust accounts collected within 30 days of the due dates

Short definition Performance indicator for the collection period of interest due to the Fund

Purpose/importance Timely collection of interest revenue due to the Fidelity Fund


SAP Download/Invoices


(Interest receivable from Estate Agency trust account collected within 30 days)/(Total interest receivable from Estate Agency trust account)*100


Type of indicator Strategic Output indicator

Calculation type Percentage in interest receivable based on accepted audit reports


New indicator Yes

Desired performance

95% collection of all interest receivable within 30 days


Finance

Indicator No & Title 5.2.2 Percentage of fully compliant claims paid within six months

Short definition Performance indicator for compliant claims acted upon

Purpose/importance Increased property consumer satisfaction due to timely action on compliant claims


SAP Download


(Number of fully compliant claims paid within six months)/(Total number of fully compliant claims processed) * 100



Calculation type Percentage of compliant claims report


New indicator Yes

Desired performance

85% of all compliant claims are acted upon within the formal service levels – six months


CFO

108

Strategic Objective 6.1: To provide transactional support through developing estate agents for the affordable and subsidized housing areas

Indicator No & Title 6.1.1 Percentage increase of estate agents and agencies operating in the subsidized and affordable housing areas.

Short definition Improving the existence and availability of estate agents and agencies operating in the subsidized and affordable housing

Purpose/importance GAP market


Data received from Lightstone in respect of affordable housing. Estate agents addresses to match to suburbs linked to Lighstone Report downloaded from SAP.


(Current number of estate agents and agencies operating in subsidized and affordable housing areas less previous period number of estate agents and agencies operating in subsidized and affordable housing areas)/ previous period number of estate agents and agencies operating in subsidized and affordable housing areas)/





New indicator Yes

Desired performance

10% increase of estate agents and agencies operating in the subsidized and affordable housing areas.


Transformation Compliance

Strategic Objective 6.2: Ensure Bi-annual data/information on industry trends and analyses are available

Indicator No & Title 6.2.1 Number of reports on trends in the affordable property market.

Short definition Establishment of reports on trends in the affordable property market.

Purpose/importance Improved reporting on activity in the affordable property market


External surveys


1 data set received from CAHF





New indicator Yes

Desired performance

2 Half-yearly Report


Transformation Executive

109

Indicator No & Title 6.2.2 Distribution of sales in the affordable housing marketed and monitored

Short definition Establishment of reports focused on the distribution of sales in the affordable housing marketed and monitored

Purpose/importance Improved reporting on distribution of sales in the affordable housing marketed and monitored


External surveys







New indicator Yes

Desired performance




Indicator No & Title 6.2.3 Annual trend analysis report indicating increase in transaction of properties valued less than R500000

Short definition Establishment of reports focused on annual trend analysis in transaction of properties valued less than R500000

Purpose/importance Improved reporting on annual trend analysis in transaction of properties valued less than R500000


External surveys





Calculation type Inclusion of survey data in Annual Report


New indicator Yes

Desired performance

2 Half-yearly Report



Date post:	16-Oct-2020
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