ANNUAL GENERAL MEETING 2018 - … · The SSC to present the amendment to the current projects for approval and cancellation ... Note and confirm the Penalty System. 10. 20:05 Voting

ANNUAL GENERAL MEETING2018

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CENTURION RESIDENTIALESTATE & COUNTRY CLUB

CENTURION HOME OWNERS ASSOCIATION NPC

A superior lifestylefor all residents in a safe aesthetically pleasing surrounding

CENTURION HOMEOWNERS ASSOCIATION NPC

22nd ANNUAL GENERAL MEETING

27 JUNE 2018

INDEX

Page

1 Notice of the Annual General Meeting …………………………………….. 1-3

2 Agenda …………………………………………………………………………… 4

3 Minutes of the AGM – 13 June 2017 ……………………………………….. 5-20

4 Minutes of the GM – 19 October 2017 ……………………………………… 21-31

5 Board of Directors 2018 ………………………………………………………. 32

6 Chairperson’s Report ………………………………………………………….. 33-38

7 Annual Financial Statements for the year ended February 2018 …….. 39-61

8 Detailed Budget 2019 vs Actuals 2018 vs Budget 2018 …………………. 62-66

9 Detailed statement of Comprehensive Income for the year ended

February 2018 …………………………………………………………………. 67-71

10 Detailed statement of financial position on 28 February 2018 ………… 72

11 Summarized 2019 Budget vs Actuals 2018 vs Budget 2018 vs

Actuals 2017 …………………………………………………………………… 73-74

12 Progress report on CHOA Capital Expenditure and funding …………. 75-76

13 SSC: Capital Progress report and approval of projects………………… 77

14 CHOA Penalty System ………………………………………………………. 78

15 Proxy form …………………………………………………………………….. 79

1

NOTICE OF THE 22nd ANNUAL GENERAL MEETING

OF THE CENTURION HOMEOWNERS ASSOCIATION NPC

PO Box 66717, Highveld, 0169

Company Registration Number: 1995/013780/08

29 May 2018

Dear Member

2018 ANNUAL GENERAL MEETING

1 Introduction

The 2018 Annual General Meeting of Centurion Homeowners Association NPC will be

held at 18:00 on Wednesday, 27 June 2018 at the Centurion Country Club. Registration

will take place from 17:00.

If you would like to vote on the resolutions but are unable to attend the meeting, you

may appoint a proxy to exercise all or any of your rights to attend, vote and speak at the

meeting.

All full title owners and registered owners of sectional titles may vote provided they are

in good standing (levy account paid in full).

The members will be informed shortly of a date for a Q & A session before this AGM to

facilitate any questions.

2 Explanatory notes regarding resolutions

All resolutions are ordinary resolutions and require a majority vote to be carried.

Resolution 1: Approval to limit the amount of directors to maximum of 6 according to par. 10.2 of the MOI

This resolution is according to par. 10.2 of the MOI which reads “the maximum number

of Directors of the Company may be changed and limited by a General or Special

Meeting of the Members of the Company from time-to-time”.

Resolutions 2 to 7: Consider, note, accept, ratify, approve and appoint

These are ordinary resolutions related to the reporting of the Associations’ financial

position, and are self-explanatory.

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Resolution 8: Note and accept the progress report on existing Capital Projects

The members to consider report back of the status on approved projects. The Board

propose to cancel all historical approved projects and request in the next resolution a

new annual approval to avoid confusion as opposed to a rolling 2 year cycle.

Resolution 9: Approval of new Capital Projects per line item for 1 year

2019/1 Paint perimeter wall R 300 000

2019/2 Preventative maintenance to electric fence R 75 000

2019/3 Improve security access – fingerprint readers R 80 000

2019/4 Replace license scanners R 140 000

2019/5 Replace three booms R 75 000

2019/6 Improve security access – physical gates R 150 000

2019/7 Replace utility vehicle R 160 000

TOTAL R 980 000

These new capital projects are presented for approval and funding out of the Capital

Reserve Fund.

The Board proposes that R980 000 be provided from the Capital Reserve Fund (CRF) for

approved capital projects for the next year.

Resolution 10: Approval of 5% increase of the Buy-in Levy amount

The Board proposes a 5% increase of the Buy-in Levy amount from R31 240 to R32 800.

Resolution 11: SSC: Note and accept progress report on existing and completed capital projects

The members to consider report back of the status on approved project.

Resolution 12: SSC: Approval of cancellation and re-allocation of funds to capital projects

The SSC to present the amendment to the current projects for approval and cancellation

of some projects.

Resolution 13: Note and confirm CHOA Penalty System

In terms of the Memorandum of Incorporation the amounts of fines and other penalties

shall be reviewed and confirmed at each AGM.

It is proposed that the penalty system be confirmed without any changes.

3 End of term for three Directors

Three Directors and the Chairperson have reached the end of their terms, they are:

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DE van Ryneveld (Ms) Chairperson

MSE MacDougall (Ms) Director

VFJ Blasl (Mr) Director

BMERV Laurent (Ms) Co-opted Director

The entire Board decided to step down. A new Board needs to be re-elected.

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AGENDA 22nd ANNUAL GENERAL MEETING OF THE


P.O. Box 66717, Highveld, 0169

Company registration number: 1995/013780/08

Wednesday, 27 June 2018 at 18h00 (Registration from 17h00) at

The Centurion Country Club Time line

1. 18:00 Welcome/Apologies (Voting for Chairperson and Directors close at 18:00)

2. 18:05 Approval of the minutes of the AGM held on 13 June 2017 & GM held on

19 October 2017

3. 18:10 Matters arising from the minutes of the AGM held on 13 June 2017 & GM

held on 19 October 2017

4. 18:25 Chairperson’s Report

5. 18:50 • Resolution 1 – The Board recommends that the Board of Directors must

consist of maximum 6 members including the Chair-

person with portfolios for Finance, Security, Corporate

Governance and Infrastructure.

6. 19:00 Financial Report

• Resolution 2 – Consider and accept the FY2018 Financial Statements

• Resolution 3 – Note and ratify Director’s Remuneration and

Reimbursements

• Resolution 4 – Consider and accept the Auditor’s Report

• Resolution 5 – Appointment of Auditors

7. 19:10 Operational budgets

• Resolution 6 – Note and ratify the 5% increase in levies for FY2019

• Resolution 7 – Note and accept the FY2019 Operational Budget

8. 19:20 Capital Budgets

• Resolution 8 – Note and accept progress report on existing capital

projects

• Resolution 9 – Approval of new capital projects per line item for 1

year and cash provision for the FY2019

• Resolution 10 – Approval of 5% increase of the Buy-in Levy amount

• Resolution 11 – SSC: Note and accept progress report on existing

capital projects

• Resolution 12 – SSC: Approval of cancellation and re-allocation of

• funds to capital projects

9. 20:00 Other Resolutions

• Resolution 13 – Note and confirm the Penalty System

10. 20:05 Voting results

Election of Chairperson & Directors

11. 20:10 Closure

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MINUTES OF THE 21st ANNUAL GENERAL MEETING OF THE

CENTURION HOMEOWNERS ASSOCIATION

HELD AT THE CENTURION COUNTRY CLUB ON 13 JUNE 2017 AT 18H00

Directors: PJ Lourens (Chairperson), VFJ Blasl, MSE MacDougall, DE van Ryneveld,

PJ Odendaal (co-opted), WE Nel.

1. WELCOME AND APOLOGIES

Welcome:

The Chairperson, Mr Philip Lourens (PL), welcomed all present to the 21st AGM and

thanked them for their attendance. As there was a quorum, (139 including proxies), he

declared the meeting properly constituted.

He thanked all those who have played a role in the success of the HOA since 5th Sept 1996.

He extended a special word of welcome to the Board of Directors, past Chairmen of the

CHOA, past Presidents of the Centurion Sports and Social Club and the Club Committee,

the General Manager Mr Jaco Venter and his staff, Tracey Garde from TLG Publishing,

Cecilia Prinsloo-Van der Linde from Prinsloo-Van der Linde Attorneys, Bidvest

representatives and the Auditors representatives. Gert Visser (Ward Councillor) had

apologised for not being able to be at the AGM. PL extended a speedy recovery to Adele van

Deventer and Pierre Lombard. He thanked Hans Jonck and his staff for catering and help

with the AGM set-up.

Apologies:

Pierre Lombard, Hilton Bothma, Ndaba Mpofu

2. APPROVAL OF THE MINUTES OF THE ANNUAL GENERAL MEETING HELD ON 1st

JUNE 2016

Approval :

The meeting approved the minutes of the AGM held on 1 June 2016.

Proposed by Mr Willem de Kok (1664), seconded by Mr Jacques Wickens (2313/R).

3. MATTERS ARISING FROM THE MINUTES

None.

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4. CHAIRPERSON’S REPORT

PL presented his report (which was circulated and attached to the Agenda and Minutes of

the 2016 AGM) and highlighted the following:

This is the 21st year in a row that the HOA has received an unqualified Audit

Report.

PL acknowledged the contributions from the HOA staff, Anneke Geary, Bidvest

Protea Coin, Life Landscapes and The Sports & Social Club.

3 Board members will be continuing to stand: Martie MacDougall, Vincent Blasl &

Edwin Nel.

2 Board members up for re-election: Dot van Ryneveld, Philip Lourens.

The financials of the estate are sound.

The location of the Estate is unparalleled.

The security is excellent even though we live in a challenging security environment.

The municipal infrastructure in the Estate is a challenge. The financial situation of

Tshwane is compromised at present, but the HOA is working with Gert Visser on

maintaining the relationship.

FY2017 Highlights:

Operating surplus (after

tax and depreciation)

R 38 767 To Retained Income

Retained Income (reserve

for operations)

R 2 048 346 Up 1.93% from previous year

Objective is R3 500 000

Revenue from BIL R 1 201 320 R 129 680 less than budgeted

Capital Reserve Fund

(Buy-in-Levy)

(Reserve for capital

projects)

R 2 672 351 Up from previous year from R

1 805 893

Capital expenditure from

the CRF

R 334 862 Additional R 25 080 spent on the

tennis court resurfacing

SCC Reserve Fund (R 242 193) Levy income only from July 2016

Audit Report Unqualified

Forced entries into homes

(no.) 0

No forced entries

Perimeter fence breached 0 No breaches

FY2017 Lowlights:

Unforced entries into

homes

11 Some stolen items recovered

Resident’s responsibility

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Other Statistics:

New property sales

registered

45 Down 12% from previous year

Average property selling

price

R 3 348 000 Down 7.2% from previous year


price R/m2

R 10 000 Down 5.7% from previous year

Number of Buy-in-Levies 41 5 down from previous year

Plans submitted for

alterations

33 8 less than previous year

Rule transgression

penalties

76 21 more than previous year

Warnings issued 55 7 less than previous year

Questions and comments:

None.

5. FINANCIAL REPORT

Financial Statements and Budget for 2016/2017 :

Martie MacDougall (MMD) presented the Audited Financial Statements, a summary of the

Financial Statements and the 2018 Budget, which were distributed to the members for their

scrutiny.

Highlighted to the meeting:

Cash in the bank: R 5 899 000

Equity & Reserves: R 2 047 000

Capital Reserve Fund: R 2 430 000

Current Liabilities: R 2 275 000

Levies in arrears: R 57 000

Levies in advance: R 595 000

MMD thanked JV and his staff for their efforts regarding watching the levy payments

closely.

Resolution 1 – Consider and accept the FY2017 Financial Statements :

MMD asked the meeting to consider and accept FY2017 Financial Statements as

documented.

The Financial Statements were considered and accepted

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Proposed by Mr Willem de Kok (1664), seconded by Mr Heyno Smith (1338/12).

Resolution 2 – Note and Ratify Directors’ Remuneration and Reimbursements :

MMD asked for the Director’s remuneration and reimbursements to be noted and ratified.

The Director’s remunerations and reimbursements were noted and ratified.

Proposed by Ms Sue Smith (2315/1), seconded by Mr Mark Fichardt (1742/2).

Resolution 3 – Consider and accept Auditor’s Report :

New Auditors – Griesel Nel Incorporated were appointed.

MMD confirmed that the Audit report was unqualified as stated by Chairman, PL.

MMD requested the meeting to consider and accept the Auditor’s Report.

The Auditor’s report was considered and accepted.

Proposed by Mr Willem de Kok (1664), seconded by Mr Tristan la Grange (1334/1).

Resolution 4 – Reappointment of the Auditors (Griesel Nel Incorporated) :

MMD asked for a proposal for the Auditors to be reappointed.

Griesel Nel Incorporated were reappointed as Auditors.

Proposed by Ms Ina Meyer (1354/R), seconded by Mr Thys Rossouw (1345/1).

6. OPERATIONAL BUDGETS

Resolution 5 – Note and ratify 10% increase in Levies for FY2018:

The levy increase of 10% was implemented on the 1st March 2017. The average levy is

R1806 pm. The Board may ratify increases of up to 10%.

Questions:

Mr Thys Rossouw (1345/1) queried if the permission for the Board to increase by up to 10%

is open-ended. He suggested that this mandate should be re-looked at in the future. He

requested that this percentage should be tabled at the next AGM.

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Mr Keith Smith (1526) said that the principle of a 10% automatic increase was given to the

Board before there were reserve funds. The mandate to the Board to increase levies up to

10% needs to be reviewed.

PL replied that the cost to repair the infrastructure (roads will need to be resurfaced)

should Tshwane not provide any funds was close on R10m, therefore there is a need

to build up the Capital Reserve Fund. The HOA would obviously keep fighting for

Tshwane to pay for the repairs and failing that to refund the HOA should it be

necessary for the HOA to fund the project.

Ms Ina Meyer (1354/R) asked how long the extra security levy was still going to be charged.

She also asked how the Homeowners would get their money back if the capital reserve was

used to pay for the infrastructure upgrade and then Tshwane refunded the HOA. She asked

if the funds will be given back to the residents if Tshwane credit the HOA.

MMD replied that the Special Levy will end at the end of July 2017.

JV replied that according to the MOI any Capital Expenditure needs to be brought to

the AGM for approval.

Ms Joyce Harris (1898/2) said that she felt there was not much chance of getting any money

back from Tshwane. She also said that the leaking water pipes on the Estate were a major

problem, and felt that spending money on repairing the road before this problem had been

addressed was a waste of money.

PL replied that there was an 8 out 10 chance that Tshwane will resurface the roads.

He extended an invitation to Ms Harris to visit the HOA office for more information.

MMD presented a list of levies of other Estates to the meeting.

Mr Tokkie Groenewald (1688) said that the levies should not be increased to attract a

particular type of person, and if we need to increase the levy to be on a par with other estates

then the Board must say that. He suggested that we should try and aim for an average cost

of living increase rather than 10%.

MMD replied that The Board takes note of his point. She said that the Board does

their homework regarding expenses before just increasing the levy.

A remark was made by an attendee that if the cash flow is good, expenses can easily be

absorbed in the cash flow.

Mr Willem de Kok (1664) said that the Board was asking for ratification of the levy that had

already been increased on 1 March 2017. He also said that should the resolution to re-

allocate the R160 special levy not be approved then in effect there would be a decrease in

the levy. The mandated 10% increase can be revisited at the next AGM. He proposed that

the Board be given the authority to increase the levy in March 2018 and then at the AGM

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have it as an Agenda item to be discussed and approved. He proposed to the meeting to

ratify the levy already imposed in March 2017. This proposal was seconded.

Mr Lefty Piagalis (1609) said that the meeting should ratify the 10% but this should be

brought to the next AGM to discuss and not just automatically be increased.

MMD replied that this would be noted in the minutes and handled as such.

PL also agreed.

MMD asked for a proposal for levies to be ratified.

The levy increase of 10% was ratified.

Proposed by Mr Willem de Kok (1664), seconded by Mr Barno Nel (1920).

Resolution 6 – Note and accept the FY2018 Operational Budget :

MMD asked for the FY2018 Operational Budget to be noted and accepted by the meeting.

Questions:

Ms Ina Meyer (1354/R) asked MMD to explain how the payment of the recycling shown on

the budget worked.

MMD replied that this amount is paid by the residents as part of their levy. The HOA

then pays the supplier.

Mr Hugo Mouton (1367/1) asked MMD to explain the overspend on the Management and

Admin.

MMD replied that after doing a survey of other Estates and looking at what the

remuneration for similar staff in the industry was, it was identified that Centurion

HOA staff were below the accepted benchmark. These salary increases will be done

over a 2-year period, hence the jump in salaries. Quality people needs to be retained.

Mr Keith Smith (1526) said that he didn’t understand why the Residents were being charged

for the recycling because there was a flyer that offered the service for free which he handed

to JV. He understood that the supplier was being paid to ensure that he arrives weekly to

collect the waste. Mr Smith suggested that the recycling needed to be reviewed at the next

AGM.

JV replied that this service was offered for free in some areas, but we were paying for

the facility to put all of the waste into one container and not have to sort it.

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Mr Mandy Mitchell (2394) asked why the meeting did not vote on these resolutions. He did

not agree with just a proposer and a seconder to get the resolution approved. There needs

to be a majority vote.

PL replied that it is the prerogative of the Chairman to decide on how the

resolutions are voted on.

Mr Thys Rossouw (1345/1) raised the question of what would happen if the 10% levy increase

of March 2017 not be ratified.

Mr. Rob Laubscher (1542) said it meant that if the increase in levies are not ratified that it

was illegal from the beginning and the HOA cannot deduct the increase. Members must

then be refunded.

Mr Lefty Piagalis (1609) stands by Mr Willem de Kok that the meeting needs to ratify the

levy increase already implemented and that the Board’s mandate can be reviewed at the

following AGM. He asked the Board to undertake that there will be no automatic levy

increases in the future, and if needed a special SGM can be called.

PL confirmed that the current mandate was already ventilated at Board level. He also told

the meeting that the Board works hard and that a Capital reserve needs to be built.

Whatever money will be spent will be in the best interest of the community.

Mr Deon Joubert (1839) said that the increase of Management and Admin was actually 23%

which is a very large increase to give without consulting the Residents.

Ms Angela Hill (1733) commented on the struggling economy at the moment and said that

we should be looking at cost cutting exercises and not increases. She said that she felt that

she could trim about R1m off this budget as it stood.

MMD welcomed Ms Hill’s help and invited her to visit the HOA offices and have a

meeting to discuss this.

Mr Willem de Kok (1664) advised the meeting that the Board was elected by the

homeowners/residents to do this job and that there were no new nominations received to

replace the retiring Board Members, yet all they get is criticism. The HOA board is doing a

good job.

Mr Lourens Maritz (1771) asked what the Management and Admin included.

MMD replied that it was primarily salaries, upkeep and everything else to do with

the administration and running of the HOA. She said that the HOA had quality staff

which needed to be retained.

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Mr Lefty Piagalis (1609) asked if the meeting could have a breakdown of the salaries. He

also asked for confirmation of the Director’s remuneration.

MMD replied that she did not have the current salaries with her. The Directors

received 1 month levy rebate as remuneration. She also queried whether it was

ethical and correct to disclose the staff salaries in this forum.

Mr Rob Laubscher (1542) felt that the HOA staff were employed by the

homeowners/residents and so they should be entitled to know the salaries.

Mr Tristan la Grange (1334/1) said that a Special AGM should be held in 4/5 months’ time

to discuss the FY2018 Operational Budget.

Mr Mandy Mitchell (2394) said that all residents are entitled to a list of the employees and

their benefits. He reiterated that there should be a majority vote to get a resolution passed.

MMD asked for the FY2018 Operational Budget to be noted and accepted by the meeting

(by a show of hands).

The FY2018 Operational Budget was not approved.

7. CAPITAL BUDGETS

Resolution 7 – Note and accept progress report on existing capital projects :

MMD showed a graph explaining the capital budget progress FY2017. Approved and in

progress items total R1 778 526. The Board is asking ratification for an extra R181 000 (for

project 6 & 6a/2016 for additional bricks.

JV highlighted the existing capital projects and explained the problems that have arisen

with the paving at the main gate and the reasons for the shortfall in the budgeted amount.

The breakages when lifting the bricks was more than the QS had estimated, and the water

damage to the existing bricks meant that these bricks could not be re-used.

Pieter Odendaal (PO) addressed the meeting and said that the money in the Capital Reserve

Fund is not used for operational purposes. The old 60mm bricks will be replaced with 80mm

bricks with a 35mpa, so it is a much stronger brick. In the past the bricks had to be sealed

every 2-3 years, but with the new ones this will not be necessary. The size of the area that

is being repaved is larger than was previously expected.

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Questions:

Mr Lourens Maritz (1771) said that R250 000 had already been allocated from other projects

so now the R180 000 that is needed is closer to R400 000 that the project is over budget.

JV replied that the R250 000 was taken from savings from other projects, but the

R180 000 needed approval.

PL said that the Board must address fundamental problems when they arise and

treat the source and not just the problem. The new paving would have a 10-year

minimum life span and the paving would not have to be revisited every 3 years as in

the past.

JV asked that the progress report on existing capital projects be noted and accepted (by a

show of hands).

The progress report on existing capital projects was noted and ratified.

Resolution 8 – Approval of new capital projects (R740 000) :

JV explained the new capital projects that were needing approval.

1/2018 Replace Golf Cart – R80 000

2a/2018 Improve security access controls – Fingerprint readers – R150 000

2b/2018 Improve security access controls – Improve alarm abilities – R70 000

2c/2018 Improve security access controls – Physical gates – R150 000

2d/2018 Improve security access controls – Spike Barriers for top gate – R140 000

3/2018 River management study – R110 000

4/2018 Replace booms – R40 000

Questions :

Mr Keith Smith (1526) felt that R150 000 was a lot of money for new fingerprint readers.

He asked JV how many readers this was for and what the cost of each reader is. He also

asked if the HOA have a formal procurement policy that they follow.

JV replied that the new generation readers would allow for quicker processing of

residents through the gate. The costs are for the readers, installation, licence fees and

lightening protection for the readers.

PL said that the Board does have a procurement policy which is followed by getting 3

quotes. Residents are welcome to come to the offices to look at these quotes.

Mr Willem de Kok (1664) felt that spending R110 000 on a river study when the piece of

river we have on our Estate is only about 1km long is not going to help the situation.

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PL explained that the study needs to be done preferably to protect the river and the

bank erosion and the trees. Specialists predict that if something is not done then the

landscape on the river will become barren in a decade.

Mr Vusa Vundla (1779) asked why spikes are necessary at the top gate.

JV explained that the top gate is the weakest security link on the Estate according to

a risk analysis.

Mr Keith Smith (1526) requested the opinion of the security expert on the Board relating to

this security issues.

VB replied that he is not sure about the readers but that speed would help. He also said

that lightning protection is not necessary.

JV said that the HOA suffered losses previously with the original installation due to

lightning.

JV referred also to the improvement of alarm abilities to help guards. Technology such as

sound barriers are available.

VB mentioned that no other Estates have sound blasting.

Mr Keith Smith (1526) mentioned that 2 Directors are arguing. The Board will consider an

expert opinion on this matter before a decision is made.

PL highlighted that the issue is to improve security controls. The reality is that Estate’s

entrances are targeted more and more as it is the easiest access point.

Ms Belinda Winterstein (1465) felt that the possible crowd strikers will jump over the wall

and not come through the main gate. According to her sound blasters would not help.

Mr Morne Oosthuizen (1739) said that the security on the Estate is not worth compromising

and that the security results have shown that the Board is doing a good job with regard to

security. Residents should not question the Board on security matters.

JV said that the Board will visit other Estates to see what security measures they have.

Ms Joyce Harris (1898/2) said that the meeting should not be questioning security funding.

The Estate is secure and security is the main stay.

Mr Rudi Britz (1360/R) asked about the double booms that were suggested 2 years ago.

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JV replied that this was investigated but there was not enough space for a double

boom and that it would slow the traffic down too much. It is not completely off the

table and can be looked into again.

Mr Tokkie Groenewald (1688) agreed that if the river management study was to protect the

river banks then it was a positive approach, but not if it was to understand where the waste

comes from and what to do about that.

PL replied that the study related to protecting the river banks and the trees and to

avoid a barren landscape within a decade and will be in the best interest of the

community.

Mr Lefty Piagalis (1609) said that the late Prof Wim Skinner did a river survey a few years

ago and maybe this should be checked with the Club to avoid duplication.

Mr Terrence Hill (1733) asked if residents can see copies of the quotes for these projects.

MMD advised that they are available at the HOA offices.

It was decided to vote on each capital project item individually (by a show of hands).

1/2018 Replace Golf Cart - Approved

2a/2018 Fingerprint readers - Approved

2b/2018 Improve Alarm abilities – Approved

2c/2018 Physical gates - Approved

2d/2018 Spike barriers top gate – Not Approved

3/2018 River management study – Not Approved

4/2018 Replace booms - Approved

Resolution 9 – Approval of the 2-year cash provision for FY2018 and FY2019 :

MMD advised that this had already been voted on as per Resolution 8 – the capital will

come in but not all of the expenditure will go out.

Resolution 10 – SSC: Note and accept progress report on existing capital projects :

Edwin Nel (EN) presented a slide show of the changes and additions as approved at the last

AGM to the Clubhouse and thanked the HOA for all the support that they have given to the

Country Club.

The final figure for the kitchen revamp from the HOA contribution was R493 329.

EN asked that the progress report on SSC existing capital projects be noted and accepted

(by a show of hands).

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The progress report on existing capital projects was noted and accepted.

Resolution 11 – SSC: Approval of new capital projects :

New projects for approval:

S1a/2018 Upgrade lounge furniture – R65 000 (Jul ‘17)

S1b/2018 New banqueting chairs and tables – R108 000 (Sep ’17)

S1c/2018 Patio furniture – R100 000 (Mar ’18)

S1d/2018 Build patio braai – R35 000 (Mar ’18)

S1e/2018 Squash courts – R50 000 (Jun ’18)

S1f/2018 Bridge 6-7 – R130 000 (Jul ’18)

S1g/2018 Tennis Court – R73 000 (Jul ’18)

S1h/2018 Wood fire pizza oven – R55 000 (Jan ’19)

Total cost: R616 000 over a 2 year period

Questions:

Mr Olivier Duffar (1880/1) asked why the tennis courts needed to be upgraded when they

were done 2 years ago.

EN replied that only the top layer surface of the courts was done, but cracks are

coming through.

JV explained that the HOA had signed an MOC with the SSC and that the SSC had

to ask and report back to the HOA on capital expenditure. The AGM of last year

approved an amount of R60 for the SSC towards these projects.

Mr Morne Oosthuizen (1739) asked EN what had happened to the card discount system

that was discussed last year.

EN replied that this was not approved at the Golf Club AGM a month ago.

EN asked that the new capital projects be approved (by a show of hands).

The new capital projects for the SSC were approved.

Resolution 12 – Approval for amendment of the MOI to make provision for a 1% Buy-in-

Levy or 10% increase on current amount :

This resolution was withdrawn due to administrative reasons.

Mr Keith Smith (1526) asked if this amount will be staying the same. MMD confirmed

that there will be no increase in this amount.

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Special Resolution 13 – Re-allocation of existing R160 monthly contribution to our Capital

Reserve Fund :

MMD advised the meeting that the capital reserve fund is part of the 20-year Master

Plan. If the current R160 Special levy which will come to an end July 2017 could be re-

allocated to the Capital Reserve Fund it would cover some of the necessary expenditure

and keep the income stream positive. If this does not happen then a Special Meeting will

have to be called when funds are required.

Mr Olivier Duffar (1880/1) said that he did not agree with the Buy-in-Levy and the Board

should rather raise the monthly levy.

Mr Thys Rossouw (1345/1) asked if this included the contribution from Tshwane.

PL replied that it excluded contribution from Tshwane, but should this happen then

the budget will be revisited.

PL thanked MMD for 12 years of service as a Director on the Board. He also thanked

Anneke Geary for her contributions.

VOTING RESULTS - resolution 13:

78 for / 85 against Not approved

8. MEMORANDUM OF INCORPORATION (MOI)

Special Resolution 14 – Approval of amendments to the MOI :

Cecilia Prinsloo (CP) – van der Linde addressed the meeting and outlined that the changes

that had been made to the MOI were mainly only to make it more user friendly.

Questions:

Mr Mandy Mitchell (2394) queried the clause in the MOI that states that a Director can

delegate and/or cede their power to impose penalties on residents to someone else. He said

that penalties are a sensitive issue and competent people should be deciding on whether to

impose them or not. He referred to his penalty that he had received without anyone

discussing the reasons around it. He felt that an investigation should be done before

penalties are imposed.

CP replied that this was not a new clause to the MOI and that the Directors were not

always available. The fine is linked to an appeal process which must be done within

30 days.

JV said that he took note of Mr Mitchell’s point.

PL said his penalty was reversed and the matter was concluded.

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Ms Zelda van der Watt (1694) asked if concessions could be given for contractor work on a

Saturday morning between 8 and 1, as the present arrangement/rule seems unfair.

PL said that it would be considered at the next Board Meeting and would revert.

Mr Lefty Piagalis (1609) asked CP to explain what changes had been made to the MOI.

CP highlighted the changes as per the information given to the residents in the pack.

Pieter Odendaal said that he felt there was a loophole to circumvent in clause 4.4.2.2 of the

proposed changes which should be looked into. No time frame is stated.

CP to investigate and amend the clause and add the necessary wording.

JV asked that the meeting consider the MOI as it is with the proviso that the Board will

table this clause at the meeting when the Budget is tabled.

VOTING RESULTS – Resolution 14:

125 for – 31 against Approved

9. OTHER RESOLUTIONS

Special Resolution 15 – Note and confirm the penalty system :

JV pointed out the new revised penalties on the CHOA Penalty System and told the meeting

that the rules on the Estate were there to maintain the investment, lifestyle and security of

the Estate. The goal of the penalty system is to change behaviour. He told the meeting

about one of the ongoing problems that the HOA has with a resident where an unsightly as-

build structure has been erected without any plans. Penalty for this is proposed at R7 500.

All the proposed changes were approved.

Questions :

Ms Jacolette Priem (1518) asked who pays the penalty for this if you buy the property and

there is an as-built structure already there that does not have passed plans. She felt that

the penalty for this should be higher.

JV took note of this and advised that the amount could not be changed at this AGM.

He confirmed that the seller would have to pay because they would not get a clearance

certificate when selling.

Ms Rossouw (1345/1) asked who fines the golfers for urinating in public.

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JV replied that you had to be a Resident to receive a fine. He would address the issue

with the Club.

Mr Keith Smith (1526) and Mr Adriaan du Randt (1341/3) addressed the issue of speeding

on the estate. They feel that it is a serious problem that does not seem to get solved.

JV took note and is addressing the issue. To get the necessary training for staff is

challenging.

JV asked that the Penalty System be noted and confirmed (by a show of hands).

The Penalty System was noted and confirmed.

10. MARKETING

Dot van Ryneveld (DvR) addressed the meeting with the Marketing presentation.

Work has been done on the CI to ensure that all logos and marketing material look

identical.

There is a good relationship between the HOA and SSC. Visual changes are evident

at the Club. Regular meetings are held between the two General Managers, including

the Security Manager to try and alleviate the theft from the Club. Regular Marketing

meetings are held to discuss social events and to get feedback about these social

events.

The bi-monthly Interface magazine featured the 20th anniversary of the Estate. DvR

thanked Cecilia for her article contributions to the magazine.

The Glo-Portal is providing the week-ahead communication, and they are looking at

segmenting the SMS’s to only be sent to the relevant parties. Emails sent from the

HOA have been monitored – 147 000 emails sent, only 36 000 read.

There will be a new APP (Centurion APP) for download which will allow residents to

update their profile, receive contacts for home maintenance 24/7, get the

communication from the HOA, and receive important documents and photos.

The Secsyst APP is going to be upgraded and will be more user friendly. Residents

will have to login every time for security reasons.

Completed projects

MWEB & Telkom fibre installations have progressed well. They are investigating the 2

areas that do not have connection yet. Free installations are still available.

Social Calendar

The new menu has been launched.

The Club is trying to provide events for the whole family.

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DvR indicated that it would be a good idea for EN to organise a clubhouse survey to see what

the resident’s needs are.

DvR thanked Jeanette for all her hard work in the Marketing department.

Year ahead

DvR told the meeting that the HOA and SSC had entered into an ARC Industry Awards

Programme. This involves looking at leadership, industry participation, community

involvement, social awareness, transformation and environmental management. The

approved organisations to be supported for 2017/18 are Caring Daisies, SPCA, Cansa and

Centurion Hospice. They are also wanting to assist with the Knysna disaster relief. The

partners in this Programme are Bidvest Protea Coin, Life Landscapes and TLG Publishing.

Acknowledgements

DvR thanked:

The members of the Board for their commitment and hard work.

Tracey Garde from TLG Publishing for all her work with regard to the Interface.

Hans Jonck and all of his staff for their efforts and hard work and presented them

with a Certificate of Appreciation.

Questions :

None

11. ELECTION OF CHAIRPERSON AND DIRECTORS

There was no election as the nominations were unopposed.

12. CLOSURE

PL thanked the members for attending and stated that we experienced democratic

participation even though the debates were robust and intense.

The meeting closed at 21h15.

_________________________________________

P.J. LOURENS

CHAIRPERSON: CENTURION HOMEOWNERS ASSOCIATION

Minuted by D Hobday

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MINUTES OF THE GENERAL MEETING OF THE

CENTURION HOMEOWNERS ASSOCIATION

HELD AT THE CENTURION COUNTRY CLUB ON 19 OCTOBER 2017 AT 18H00

Directors: DE van Ryneveld (Acting Chairperson), VFJ Blasl (Security), MSE MacDougall

(Finance), BMERV Laurent (co-opted Corporate Governance), WE Nel (Sports & Social

Club).

1. WELCOME AND APOLOGIES

Welcome:

The Acting Chair, Ms Dot van Ryneveld (DVR), welcomed all present to the meeting and thanked

them for their attendance. As there was a quorum (236 including proxies at the start of the

meeting), she declared the meeting properly constituted.

She extended a special word of welcome to the past Chairpersons of the CHOA, Cecilia Prinsloo-

van der Linde from Prinsloo-van der Linde Attorneys, and the Auditors representative Jannie

Griesel. She introduced the Board members as well as co-opted member Brigitte Laurent who is

the Director for the new Corporate Governance portfolio. DVR advised the meeting that all of the

presentations and resolutions would be presented and then questions could be asked afterwards.

Apologies:

Joey du Toit

Philip Lourens

2. CORPORATE GOVERNANCE PRESENTATION

Brigitte Laurent (BL) gave a brief outline of what this new portfolio is aimed at achieving.

Corporate governance is the system of rules and processes by which a company is directed

and controlled.

It involves balancing of the interests of a company’s stakeholders – shareholders,

management, customers, suppliers, financiers, government and the community.

5 principles of corporate governance:

1. LEADERSHIP – the Board should steer the company to meet its business purpose in both the

short and the long term.

2. CAPABILITY – the Board should have an appropriate mix of skills, experience and

independence to enable its members to discharge their duties and responsibilities effectively.

3. ACCOUNTABILITY – the Board should communicate to the company’s shareholders and

stakeholders at regular intervals, a fair, balanced and understandable assessment of how the

company is achieving its business purpose and meeting its other responsibilities.

4. SUSTAINABILITY – the Board should guide the business to create value and allocate it fairly

and sustainably to reinvestment and distributions to all stakeholders.

5. INTEGRITY – the Board should lead the company to conduct its business in a fair and

transparent manner that can withstand scrutiny by stakeholders.

The Company Act and MOI directs us to act in this manner.

3. SIGNATORY GROUP PRESENTATION

Terrence Hill (TH) presented the items of concern on behalf of the Signatory Group, and hoped

that the information given would help with the decision making of the members of the meeting.

He explained that the Signatory Group (Represented by Terrence Hill, Keith Smith and a core

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team of 15 members) had obtained 220 member’s signatures to get items onto the Agenda for the

GM.

What has been achieved:

Actions influenced by the Signatory Groups interventions:

Security Director position refilled after being vacant

Increased focus on doing things right

Improved investment yields and planning

More disclosures on the budget

Reviewing all contracts

Reduction in budget.

3.1 Presentation by residents on general items of concern

Lack of engagement with the members on re-allocation of budget savings

Cost control – The Budget should not be a target, it should be a calculated process

Transparency of actions taken by the HOA – non-disclosures

Tshwane Infrastructure

How do we vote? Proposing and seconding i.e. a two-person vote, does not constitute a

vote legally and should this method be used, objections should be called for. When

voting by a show of hands, proxies and multiple owners are difficult to count.

Other items: Contract management and procurement pressure to drive costs down

Procurement methods

Outsourced approach vs staff compliment

Investment strategy

Detailed line items in the budget not being sufficiently scrutinised

Corporate Governance

MOI used vs what was agreed

The ability to obtain information.

3.2 Presentation by residents on a detailed budget & estimated potential savings compared to

information obtained verbally from the HOA

Budget concerns:

Re-allocations of savings to other projects

High level of outsourcing

Salaries – already increased (above market related) from 1 Mar 2017 – Complete CTC is

not disclosed on one budget item

Legal costs incurred – potentially unnecessarily.

TH asked the meeting if they were aware of the legal costs that are being incurred. These are

associated with the Tshwane Water Bill Court Case, M & T Feedback and Legal opinions on

resolutions. General consensus of the meeting was that they were not aware

He referred to an extract from the MOI which states that the CHOA must “control and manage

the aesthetic appearance, maintenance and upkeep of all areas surrounding the public roads

within the area covered by the Scheme.” He stated that the Board actions and the 20-year plan

contradicts this.

Budget opportunities:

Detailed budget not made available

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Garden contract

River maintenance

Salaries

Combine similar functions to extract synergies

Telecoms costs (Switchboard rental, cell phones, iPads etc.) – full review recommended

Procurement using the broader HOA community can add value.

3.3 Amendment to the MOI for the establishment of an Internal Audit Committee

Material commitments are made without consulting the community – implement

delegation of authority and mandates

Implement disclosures, i.e. Conflicts of interest

An independent process to drive savings and investment income

Transparency in the procurement process

This resolution is the main drive of the Signatory Group.

3.4 Amendment to the MOI to allow a member to authorise a spouse to be a Director, and other

recommendations

A spouse has a material interest in the property

Appropriate rules can be put into place to protect the member

Need to have a broader pool of people to stand for Directors.

3.5 Permanent Director portfolios for Finance, Security and Infrastructure

The Security Director was vacant after the last AGM and this portfolio has been filled

Key positions must include Finance, Security and Infrastructure

The Board has recommended and additional portfolio – Corporate Governance

The Signatory Group believes that a Risk and Compliance Committee is needed to

support this drive and serve as a bridge for transparency of the HOA actions.

3.6 Automatic increase of levies to be revoked – can only be approved at an AGM

TH reviewed the historical levy increase on medium stands of the last 10 years and

highlighted that the increase used to be on inflation but that is now no longer the case

The Board should annually present their budget for approval prior to levy increase

There is sufficient reserve to carry the inflation aspects until the AGM

The budget can be run from AGM to AGM.

3.7 Budget reduction and governance

Budget reduction:

Expect to see a reduction in levies or additional value add at the next AGM

Budget meeting prior to next AGM as per Board discussions

Budget numbers should be as realistic as possible.

Governance:

Requirements as per Risk and Compliance Slide

Cross funding only with specific rules

Procurement policies

Information should be available to members freely via a portal

Information should be available to members via request

Verification of MOI amendments.

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3.8 Remove capital projects 2a/2018 and 2b/2018 from list

The community was ill informed of the implications of these 2 projects:

Project 2b/2018 improve alarm ability

It can harm our residents or visitors

Can lead to civil law suits against the estate

It is a military/police device.

Project 2a/2018 finger print readers

Life of existing readers is another 3 years

The speed of the reader is not the problem – the opening of the boom is.

4. SPECIAL RESOLUTION 1

This resolution seeks permission to revoke the mandate given to the CHOA Board during the 2001

AGM to increase levies up to 10% annually to prevent future large increases in levies should the

Board of Directors deem it necessary. Any levies would therefore be approved at AGM/SGM.

The Boards Facts & Opinion:

Facts: This decision was voted by the members at the 2001 AGM.

3 x levy income must be adhered to according to legislation. (Post minute statement –

This is an incorrect statement, only a guideline unless someone can quote the legislation

reference).

To avoid unnecessary large increases in any particular year.

Opinion: An annual CPI + 2% on average percentage of the CPI of the previous financial year.

Alternatively, an annual SGM in January/February. The Board’s budget and levy

increase would be presented for approval. A quorum at 2 meetings a year would be

mandatory. There are cost implications of having 2 meetings per annum. Should no

levies be timeously approved, this can hinder the proper functioning of the CHOA.

5. SPECIAL RESOLUTION 2a

This resolution seeks permission to cancel capital project 2a/2018 – Fingerprint readers – which

was approved at the 2017 AGM.

The Signatory Group requested cancellation of the AGM approved project.

The Board’s Facts & Opinion:

In view of the 2 incidents at the Main and Top Gate it is the opinion of the Board that had the

fingerprint readers been replaced with faster readers, the impact of the incidents might have been

less severe. The Board does not support the cancellation of this capital project.

6. SPECIAL RESOLUTION 2b

This resolution seeks permission to cancel capital project 2b/2018 – improved security access

controls – improve alarm abilities - which was approved at the 2017 AGM.

The Signatory Group requested cancellation of the AGM approved project.


As far as cancelling the improved alarm abilities, the Board agrees to cancel this project.


This resolution seeks approval to have permanent Director Portfolios on the Board of Directors for

Finance, Security, Infrastructure and Corporate Governance & Compliance.

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The CHOA Board supports this request.

The Board has included an additional permanent and occupied portfolio for good Corporate

Governance & Compliance to oversee procurement and transparency in the daily activities of the

CHOA, and to establish a code of conduct.

8. SPECIAL RESOLUTION FOR PROPOSED AMENDMENT TO THE MEMORANDUM OF

INCORPORATION (MOI)

8.1 Risk & Compliance (Audit) Committee

Reason for and effect of special resolution:

The CHOA receives requests for information regarding its operations. This information is not

always freely and readily available to members and can only be viewed at the office during

office hours. This resolution is intended to establish controlled procedures by which the CHOA

Board can share information as requested by members.

The Risk & Compliance Committee will be able to review and provide oversight of financial

activities, the system of internal controls and review their effectiveness. The Committee

members should be appointed annually by the Board from nominations received from the

CHOA members at the AGM. Only resident members may be eligible to serve. The intention

of the Committee is to assist the Board in facilitating open and transparent communication

with Members.

This resolution will allow Members to authorise the establishment of the Risk & Compliance

Committee with immediate effect and will not be dependent on the MOI being updated which

will take place subsequent to the approval of the resolution.


Facts: A legal opinion was obtained and distributed to Members.

Board members are nominated and elected at an AGM by the community.

Board members are responsible to the community to oversee and control the portfolios

entrusted to them by the Chairperson at the first Board meeting after election takes

place.

Board members at all times should act within the framework of the MOI and the

Companies Act and report back to the community at an AGM or other methods available

should the need arise.

Cost implications.

Legal implications.

Opinion: The new portfolio and MOI already provides for transparency and Sub Committee.

8.2 Authorise a Spouse to be a Director

Reason for and effect of special resolution:

The MOI currently allows for companies, trusts and other bodies corporate, to appoint

authorised representatives to be nominated for appointment as a Director to the Board.

However, although the spouse of a member has a vested interest in the property registered in

the name of an individual Member, the MOI does not allow for this dispensation to apply to

individual Members.

It is proposed that the MOI be amended to provide for a member to authorise a spouse to be

nominated for appointment as a Director to the Board and the written authority issued by the

Member follows a similar process as that which is in place for the appointment of

representatives for companies, trusts and other bodies corporate and that Members can then

elect Directors from persons so appointed.

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Facts: The Board requested a legal opinion. A memorandum of advice was distributed to

members.

Opinion: The Board will support this proposal with the consideration of the memorandum on

advices guidelines.


The resolution seeks approval of the FY2018 Operational Budget as amended.

The Board presented the reduced FY2018 Operational Budget for approval.

MMD presented the amended budget highlighting the following:

Levy increase:

Levy increases are primarily based on expenditure which gets reduced by some income such as

interest, registration fees, access fees and a few other items of income. She pointed out the actual

% increase against CPI since 2006. She said that it needs to be remembered that the “basket

arriving at CPI” is not the same as the basket of expenses in our estate. Part of the expenses

comprise additional contributions to the Sports & Social Club as well as a “Contingency” which the

Board always aims not to spend in order to build up reserves.

Budget vs Actuals:

The Board regards the budget as a guideline to control spending in a responsible way and never as

an open cheque book. Over many years the Board consistently aimed and achieved it to perform

better than budget by being responsible in the spending of the money. This is also due to

conservative budgeting for other income as well as not spending the Contingency. The surplus is

transferred annually to Retained Income and the Capital Reserve Fund.

Since Feb 2006 a total surplus of R4.471m was accumulated, split between Retained Income

R2.260m and Capital Reserve Fund R2.211m.

Capital Reserve Fund:

Part of the annual surplus has been allocated to the Capital Reserve Fund over the years. The

Board did not only rely on the Buy-In-Levy to boost this reserve. A total of R2.2m has been

allocated to this reserve since 2010.

Reserve:

MMD showed how the Retained Income has increased over the years. If a portion of the annual

surplus had not been allocated to the Capital Reserve Fund, the retained income would stand at

R4.259m which would be slightly lower than where is should be at R4.640m.

Balance Sheet:

MMD said that the financial position of the CHOA is strong. Current liabilities are covered by

cash in the bank (3.65x) and current assets (3.74x). The retained income is not on the level of 3 x

current levy income. The shortfall as at 31st Aug is R1.85m and cannot be ignored. It was the

stated objective of this Board many years ago and endorsed by all previous and present Boards to

have the retained income at this level. This is also required and endorsed by the Ombudsman and

ARC. This reserve can also assist in avoiding large special levies. A reserve of this size as well as

cash in the bank allows the Board quick access to funds should the need arise without having to

hold a SGM to raise special levies.

Budget:

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The re-worked budget is based on the 6 months actual figures to August and projections for the

following 6 months, based mostly on contracts in place and essential cost items. Certain contracts

are under review and may contribute to additional savings.

Various factors contributed to this saving:

The income budget other than levies has always been done very conservatively ensuring

this it is realistic and achievable.

The General Manager negotiated the Security Contract annual increase effective 1st

September.

Certain items needing repairs or replacement were postponed.

Budgeted tree planting will not take place.

2018 – 2019 Budget:

This process starts in September as soon as the results for the 6 months ending 31 August are

known.

In anticipation of the vote on the levy increase, the Board might have to call a SGM in early

February to determine the levy increase.

If levies can only be increased after approval at an AGM, normally in June, the backlog of income

in levy for the period March to June will result in a higher % increase. This is the reason why it

was changed in 2001.

10. FEEDBACK ON TSHWANE DISPUTE

Cecilia Prinsloo-van der Linde from Prinsloo-van der Linde Attorneys gave feedback on the

ongoing Tshwane water dispute. She advised the meeting of the process that has been followed so

far with court appearances and extensions that have been given to Tshwane Council by the Court.

It has been necessary to take this matter to court to prevent the Council from cutting the access to

the Smart Meter which would have a direct impact on the Estate. Cecilia advised the meeting that

she has been invoicing the HOA at a discounted rate. It is hoped that this dispute should be

resolved in November this year at the next court hearing.

11. QUESTIONS

Ms Ina Meyer (1354/R) asked Cecilia if we have received cost orders for the Tshwane dispute. She

also said that if the Council has found loopholes to get extensions up to now, what is to say that

this will not happen again in November. She also asked if Prinsloo-van der Linde were working on

a % basis on this dispute.

Cecilia – we have received cost orders, and the Court has said that it is at the cost of the

city and that no further extensions will be granted. There is a fee agreement with the

CHOA for the legal costs.

Mr Willem de Kok (1664) commented on the levy increase. He said that the increases over the last

few years have been 100% correct and that there are reasons that they have been increased as

such. The Estate started off with a very low levy and certain projects need to be funded. An

additional levy of R65 was added to assist the Club. He also said that Board members are elected

by the residents to serve to the best of their ability. Maybe it would be a good idea to increase the

number of Directors. He asked Terrence Hill if the Signatory Group had looked into opportunities

in the Sports & Social Club.

TH – opportunities in the SSC and Security is an option to look into. They had not

specifically look at this area. He felt that levies needed to be evaluated and cut and a new

levy structure introduced going forward.

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Mr Pierre Lombard (1469) added to MMD’s presentation by adding that the increased levy money

is not wasted, it is sitting on the balance sheet. He asked if the Board had a policy with regard to

salaries of the staff. He said that he was very pleased with the current Board and the new

members of the Board.

DVR – the Board has a strict code of conduct and has investigated all increases thoroughly

using a KPI’s, market related salaries, value of the staff.

BL – guidelines are followed and benchmarked against other similar Estates.

Mr Keith Smith (1526) said that he is elated and gets comfort from the fact that there are now 2

new Directors on the Board. He also said that he is very impressed with BL. He said that he is

concerned about the fact that the salaries of the staff are only discussed and approved by the

Chairman and Finance portfolio and the General Manager. He said that the decisions regarding

salaries should be approved by the whole Board. He referred to MMD’s comment “not an open

cheque book” and said that the Budget should not be a target. He reiterated that there should not

just be an automatic 10% increase in levies, but that a budget should be presented in February.

He felt that there is frivolous legal expenditure, for example, are Prinsloo-van der Linde Attorneys

billing for their presence at the meeting, and the legal bill for the opinions sought by the CHOA on

the resolutions. There are 3 lawyers on the Signatory Group that would have given the opinion for

free. He said that the garden contract is a joke and a full investigation needs to be done. If the

gardens are done in-house then there could be a saving of approximately R400 000 per annum. He

said that the Signatory Group does not want to divide the community. Since its inception,

transparency has improved slightly but certain information should still be made available to

Members. He said that it hasn’t been easy to get information and certain emails have not been

responded to. He said that the Members will not be subservient to the Board.

DVR – the Board has been accommodating with regard to access to information requested.

They have spent hours with residents attending to queries. The garden and river are not

viable to do in-house at this stage, but this is being investigated. The Board will be

scrutinising the 10% levy increase in every way possible. BL has been involved in the

process for the salaries of the staff.

BL – Directors need to understand their Fiduciary obligations and according to corporate

governance certain information is confidential.

Mr Mandy Mitchell (2394) quoted section 63 of PAIA which refers to disclosure of information

which would include salaries. He said that the MOI states that Members are entitled to all

financial accounts and all contracts. As a member he needs to know where his money is going. He

feels that the Members are being misled and that he could bring an application to have the

information disclosed. This would lead to another court case.

BL - The Constitution of the Country says that everyone has a right to privacy and the

disclosure of information. She wondered why there seemed to be an abnormal desire to get

the salary information.

DVR – the Board will look into the salary disclosure and the legal ramifications.

Ms Alta van der Walt (1483) asked if the salaries shown on the budget were cost to company. She

said that the spending of the contingency money was not approved by the Members. Money is

reallocated without approval. Most Members are not financial people and it would be nice if the

budget presented was always in the same format – not one year in detail and one year not. The

same format should be used every year.

MMD – salaries are not cost to company, do not include extras. It is not the intention to

spend the contingency money so that the reserves can be increased. The money spent at the

Clubhouse was the first time this Contingency money has been used. The budget has been

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approved at the same level for the last 5 years, but if more detail is required then this can

be done.

Mr Adriaan du Randt (1341/3) said that due consideration should be given to the fact that the

Security Contract had been negotiated down by 6%. He felt that the salary increases were too high

and if they continue at the rate of increase that they have been following then the forecast for the

next 10 years does not look good. He felt that the residents had a right to know the salaries of the

staff.

Mr Edwin Stafford (1472/1895/R) said that the % increase in salaries is not in line with what is

happening out there. The residents pay the salaries so they are entitled to know what they are.

He questioned the reason that the paving was redone because it was perfect before. He also said

that he submitted an application to stand for the Board but his application was 1 minute late and

something was wrong with the signatures so his application was turned down. He questioned why

the residents get experts in like an architect, only to have their application turned down by the

Board.

DVR – thanked him for his input and the Board has taken note.

Mr Deon Joubert (1839) said that he was unhappy about the increase in Management Fees in the

June budget. He questioned why 30% of the budget was spent on Management and Admin.

MMD – the Ombudsman levy is included in the Management & Admin. The income and

expenditure are now matched on the revised budget.

Mr Udo Winterstein (1456) felt that the real issue is Governance. The proposed Audit Committee

could oversee that the Members get value for money. The Committee could offer expertise with

different levels of skills. There needs to be a structure in place to drive down costs.

Mr Darryll Castle (1409) said that is sounds like the Members see the Board as Management. The

Board and Management must be separate. Members must elect and trust the Board. The existing

Board must rebuild the trust of the Members. Rotation at Board level is needed and there should

be a vote for Board Members regardless.

Ms Angela Hill (1876/6) said that at the June AGM she advised that she could chop R1m off the

Budget. Mr K Smith got the Signatory Group going and now the Budget has come to R750 000

less. She still felt that there are more opportunities to reduce the Budget. If there is to be

spending over budget then the whole Board needs to approve it. How come all the Directors do not

have access to the salaries.

DVR – any overspend is always approved by the whole Board. The new Board will look into

salaries.

Mr Craig Campbell (1372/1) asked why there seems to be so much defence if everything is above-

board. Have the Auditors done a proper audit? The Board needs to get its act together to regain

the belief in them from the Members.

Mr Tokkie Groenewald (1688) said that it is difficult to solve all differences so the Risk &

Compliance Committee is the answer. He congratulated the new Board members.

Ms Marthi van der Walt (1889/2) thanked the Board for standing together and answering all the

questions.

12. VOTING RESULTS

All resolutions were Special Resolutions that required 75% of the votes in favour to be passed. The

results of the resolutions are as follows:

Special Resolution 1 - This resolution seeks permission to revoke the mandate given to the CHOA

Board during the 2001 AGM to increase levies up to 10% annually to prevent future large

increases in levies should the Board of Directors deem it necessary. Any levies would therefore be

29

10

approved at AGM/SGM.

VOTES IN FAVOUR = 162

VOTES AGAINST = 88

Percentage = 64,8%

This resolution was not passed.

Special Resolution 2a - This resolution seeks permission to cancel capital project 2a/2018 –

Fingerprint readers - which was approved at the 2017 AGM.


VOTES AGAINST = 88

Percentage = 62,24%


Special Resolution 2b - This resolution seeks permission to cancel capital project 2b/2018 -

Improved alarm abilities which was approved at the 2017 AGM.


VOTES AGAINST = 21

Percentage = 91,2%

This resolution was passed.

Special Resolution 3 - This resolution seeks approval to have permanent Director Portfolios on the

Board of Directors for Finance, Security, Infrastructure and Corporate Governance & Compliance.


VOTES AGAINST = 15

Percentage = 92,8%

This resolution was passed.

Special Resolution 4 - This resolution seeks approval of the FY2018 Operational Budget as

amended.


VOTES AGAINST = 58

Percentage = 74,69%


DVR advised that the Board would be seeking the opinion of the Auditors on this result as to

where to go from here and to find out if this percentage could be rounded up to 75%.

Mr Pieter Fourie (1591) responded that according to the MOI the percentage for approval needed

to be 75% and could not be rounded up.

Signatory group Special Resolution - Amendment to the MOI to allow a Member to authorise a spouse to be a Director. VOTES IN FAVOUR = 165

VOTES AGAINST = 82

Percentage = 66,26%


Signatory group Special Resolution - Amendment to the MOI to establish a Risk and Compliance Committee. VOTES IN FAVOUR = 166

VOTES AGAINST = 78

30

11

Percentage = 66,4%


DVR announced that Mr Darryll Castle and Mr Terrence Hill were elected unopposed to the Board

of Directors and welcomed them to the Board.

The meeting closed at 21h56.

_________________________________________

DOT VAN RYNEVELD

ACTING CHAIRPERSON: CENTURION HOMEOWNERS ASSOCIATION NPC

Minuted by D Hobday

31

BOARD OF DIRECTORS2018

2


LOGO

Colour break down


full colour logo (landscape)

black & white logo (landscape)

full colour logo (portrait)

black & white logo (portrait)

Smallest Size

25mm wide

40mm wide

PANTONE 357c92 m18 y94 k61html #215732

single/white logo on a colour background

10mm wide

CENTURION RESIDENTIALESTATE & COUNTRY CLUB CENTURION HOME OWNERS ASSOCIATION NPC

ChairpersonMs. Dot van Ryneveld

Financial DirectorMs. Martie MacDougall

Public Relations DirectorMr. Terrence Hill

Security DirectorMr. Vincent Blasl

Vice ChairpersonMr. Edwin Nel

Architecture & Infrastructure Director

Mr. Darryll Castle

Corporate Governance & Compliance Director

Ms. Brigitte Laurent

32

Chairperson's report for the 2018 AGM 1 DE van Ryneveld

Chairperson's Report (2018 AGM)

Centurion Homeowners Association NPC (CHOA)

The CHOA is incorporated under the Companies Act as a non-profit company (NPC)

that has no share capital. It operates on a not-for-profit basis for the benefit of its

members (the home owners). It is tax-exempt except for income not obtained from

its members as levies.

The vision of the Board is to communicate to the members regularly. Since being in

the chair I have sent you my communiques to update you on our aspiration and

visions.

Our Centurion Residential Portal is available as a mobile App or on our website. It

is a communication instrument giving you access to the CHOA’s information. We

have uploaded several important documents, annual financials, budget and policies.

We will continue to update the Portal as and when necessary.

The Board also found it necessary to update the Policies which is currently in

progress.

The Board took a new direction in working together on a Strategy Plan ensuring we

strive for an aesthetically pleasing Estate and to increase the property values.

The Board of Directors of the CHOA and the SSC’s 5-year Strategy Plan, with

specific goals for the Estate are summarized as follows:

Security. The security of the Estate has always been our priority. We

continue to strive to keep an excellent track record.

Lifestyle. A harmonious and peaceful lifestyle on the Estate. Everyone

continues to play a significant role to achieve this.

Aesthetic standards. Continue to upgrade and make improvements to the

aesthetic standards of our Estate.

Property Values. Our investments in properties remains one of our focus

areas. We have one of the best positioned estates in the country and we must

continue to strive that the property values always reflect this.

Infrastructure. Our roads and bulk services from the municipality are still a

major concern. The Board addresses this matter with Tshwane Municipality

regularly.

Financial Position. Our financial position should remain very strong with

constant improvement to average ratios. The Board will continue to be stable

and transparent.

33


Synergistic Relationship with the SSC. The SSC makes up so many aspects

already mentioned, to the success of the 5-year Strategy Plan. It is

paramount that the SSC and the CHOA work in conjunction with each other.

All of the strategies mentioned must be measured with timelines to ensure we work

towards the common goals. We will continue to communicate our progress to the

residents.

FY2018 STATISTICS

FINANCE

Operating surplus

(After tax and depreciation) R 1 407 441 To Retained Income

Retained income reserve

(Reserve for operations) R 3 457 206 Objective is 3x the monthly levy

– R 4 967 000.

Revenue from BIL R 1 218 360 R 159 324 less than budgeted.

Capital Reserve Fund (Buy-

in levy)

(Reserve for capital projects)

R 3 094 809 Up from previous year with

R 422 458.

Capital expenditure from

the Sports & Social Club R 173 000

Upgrades of Residents Bar.

Further upgrades still required.

Audit Report Unqualified 22 years in a row

SECURITY STATISTICS

Perimeter fence breached 1 No forced entry.

Unforced entries into homes 6 Stolen items not recovered.

Forced entries into homes 1 Stolen items not recovered

PROPERTY STATISTICS

New property sales 41 Down 8.9% from previous year.


price R/m2R9 500 Down 5% from previous year

Number of Buy-in Levies 39 2 Down from previous year

Plans submitted for

alterations 39 6 More than previous year

34


Financials

The budget was not approved at the 2017 AGM. At the General Meeting held in

October, all matters voted on required a percentage of 75% or more as they were

Special Resolutions. This included the budget which obtained a 74.6% yes vote. The

result being an unapproved budget. As a result, management put a hold on most

expense items thus saving R494 760 against the original expense budget.

Additional income other than levies resulted in R412 450 over the original income

budget. The CHOA paid additional tax on this income amounting to R68 378 more

than the original amount budgeted for. It is the practice of the CHOA to budget for

a ‘Contingency’ expense which equates to 3% of total levy income. It is always the

intention of the Board not to spend this money which helps to increase the Retained

income reserve.

Taking all the net savings into account, the Net Operating Surplus for the 12 months

amounted to R1 407 440. This amount was transferred to the Retained income

reserve. The Retained income reserve now stands at R 3 457 206 as at 28 February

2018.

The Board remains committed to decisions taken by previous boards, to building a

Retained income reserve equal to 3 month’s current levy. Current monthly levies

from 1 March amounts to R 1 655 679. Our Retained income reserve should be at a

level of R 4 967 000 which implies we remain behind in reaching this objective.

The Financial Position of the CHOA remains strong and sound. We are particularly

proud of the Current asset/liability ratio of 6.15 and the Cash/liability ratio of 5.92.

Levies outstanding remains very low overall at R 135 920 and levies paid in advance

at R 655 454. This is both a testament to you, the members and the diligent

collection of levies.

All surplus cash is invested to obtain maximum interest thereon. Management has

always kept the current account as low as possible with the rest of the funds invested

in Money Market, 7-day notice and Fixed investments. This will be illustrated with

a graph later in the presentation.

Capital Reserve Fund (CRF)

The income for the FY2018 was R1 218 360 against a budget of R1 377 684.

Expenses for FY2018 amounted to R 795 902 against a budget of R2 078 526.

The balance of the CRF stands at R3 094 809.

The Board decided to recommend an increase of 5% to the Buy-in levy for the

FY2019. This will increase the contribution from R 31 240 to R 32 800.

35


Capital Expenditure

Many of the planned projects were cancelled for the FY2018. The projects completed

were:

Walking trail bridges at a total cost of R 89 854

Repair and repave the main gates at a total cost of R 711 598

Improve security gate access with new fingerprint readers: R 25 924 (R124 076 less

than budgeted), the rest of the project was cancelled.

The 20-year plan for Capital projects were reviewed extensively. The Board took a

decision to approve Capital projects for 1 year at a time and not 2 years at a time as

done at previous AGM’s. Because of this decision all projects previously budgeted

and approved will be cancelled. A new list of priorities is tabled below:

For approval FY2019:

2019/1 Paint perimeter wall R 300 000

2019/2 Preventative maintenance to electric fence R 75 000

2019/3 Improve security access – fingerprint readers R 80 000

2019/4 Replace license scanners R 140 000

2019/5 Replace three booms R 75 000

2019/6 Improve security access – physical gates R 150 000

2019/7 Replace golf cart/utility vehicle R 160 000

TOTAL R 980 000

The Board further took the decision to include a line item in the Operational budget

to build the Capital reserve funds as this will be necessary going forward into the

future.

Security

We are proud that the security on the Estate remains one of the biggest success

stories and continues to be exceptional. However, residents should never be

complacent. We express thanks to all our security personnel for their pro-active

actions to ensure that our Estate is not vulnerable to criminals.

The CHOA has contributed with great success towards securing Tshwane’s electrical

infrastructure within our area. Regular cable patrols and monitoring of the sub-

stations continue and we strive to reduce the power outages.

Tenders

We recently communicated to you of our intention to go out on tender for our garden

maintenance. Thank you to everyone who was involved. The adjudication was

completed and we will announce the successful applicant. The next tender will be

for the cleaning of the river.

36


Resident satisfaction Survey

A web-based resident satisfaction survey was performed to evaluate the staff in

January 2018. We received 260 responses which represents a return of

approximately 30%. The results again indicated a positive attitude in the Estate

with a high level of satisfaction regarding the services provided by the CHOA. The

overall weighted average was 77%, 3% lower than the previous year. Various aspects

of the survey are receiving attention.

Sport and Social Club

The SSC has made a significant turnaround from a deficit of R621 715 in the FY2017

to a surplus of R655 958 in the FY2018. This is directly as a result of taking over

catering and doing it in-house. This can clearly be seen from the increase in revenue

from ‘Food and Beverage’ from R6 859 039 (2017 {7 months}) to R14 211 010

(FY2018). Gross profit from ‘Food and Beverage’ has increased from R3 779 239

(FY2017) to R8 643 200 (FY2018).

The SSC is now operationally self-sufficient after the additional increase in the

social levy and capital projects levy was approved with effect from July 2016. The

SSC spent an amount of R173 000 on lounge furniture and banqueting chairs and

tables (project SSC1/2018) in FY2018. These improvements make the clubhouse

more inviting to residents overall. The SSC has R435 247 available in FY2019 for

more improvements to clubhouse projects (number S1-3/2019).

The CHOA will continue to support the SSC in funding its capital projects and to

upgrade its facilities. The aim is that all facilities on our Estate must be kept and

maintained at a standard conducive to the overall image and status of CRE. The

CHOA is committed to working together with the SSC to create an environment

which is inviting and pleasing to all residents where great meals can be enjoyed over

a glass of good wine!

Personnel

The CHOA staff have gone through difficult times this past financial year. They

strived to keep spending to a minimum and were always mindful of an unapproved

budget.

The success of the CHOA can be attributed to excellent staff members and their

number of years’ service shows their expertise.

To Jaco Venter our General Manager, and his team, thank you for your

commitment in the way you fulfill your daily tasks. You are an example to many

other estates of how an office should be run. Well done team.

37


Board of Directors

Due to the resignation of Mr. Phillip Lourens, I stepped in as Chairperson until our up and coming AGM. I would like to thank Phillip for his tireless commitment while serving on the Board as a member and as Chairperson.

Ms. Brigitte Laurent was co-opted before our General Meeting. After our General Meeting held in October 2017 we required 2 more Board Members. Mr. Darryll Castle and Terence Hill were nominated unopposed. Thank you to all of you for your hard work.

Ms. Martie MacDougall our Finance Director has decided to retire from the Board. After 7 years and then another 6 years on the Board. I think it is only fitting to thank her for her 13 years of service. Martie, many thanks for your dedication, passion in keeping our finances in such a healthy state. Words cannot describe what you have done by giving our residents the peace of mind that our finances have been watched over by your “eagle eye”. Your shoes are going to be hard to fill.

At the time of writing this report, Mr. Vincent Blasl our Security Director has also decided to retire after 6 years of service. Vincent’s many hours of walking around the perimeter early in the morning and late at night to ensure everything is under control, his dedication indicates we have the best security. Thank you, Vincent, for always keeping everyone on their toes and never allowing anyone to be complacent. You have most certainly taken our security to a level which other estates often compare to what they have.

Sub-committee meetings and monthly Board meetings were well attended. At the first Board meeting held after the General Meeting it was agreed that the entire Board would all stand down, except for the President of the SCC, Mr. Edwin Nel due to the ex-officio nature of the position. This gives the residents the opportunity to nominate a new Board and to continue with our Strategy Plan going forward.

Outlook

The outlook of the Estate remains positive and must always be an address of aspiration. The track record of the Estate regarding management, financial position, security and physical assets is of a high standard and there is no reason to believe that this will change. Owners and Residents can be rest assured we will work hard to ensure our strategy and vision will always be a priority.

DE van Ryneveld Chairperson

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20,471,300 19,683,560 19,271,16020,471,285

LEVIES 19,479,700 18,547,402 18,552,660

Basic levy 19,142,170 18,224,943 18,225,203

SSC soc mem fee -Additional 290,390 276,567 276,567

SSC capex 435,590 414,850 414,850

SSC capex (435,590) (414,850) (414,850)

Free levy - supply to energizers (12,600) (11,000) (6,000)

SSC - Security levy 59,740 56,892 56,890

INVESTMENTS 537,000 485,608 284,600

Interest on bank balance 536,400 479,732 284,000

Interest 7 day notice 41,400 75,463 20,000

Interest Money Market 27,000 105,155 24,000

Interest fixed deposit 468,000 299,114 240,000

Interest levy debtors 600 5,876 600

REGISTRATION FEES 305,000 408,750 286,500

Estate agents 162,000 211,690 202,500

Service providers 35,000 39,780 30,000

Tenant registration fees / rental fee 108,000 155,870 54,000

Golf cart registration fees - 1,410 -

SERVICE FEES 106,400 142,845 81,400

Concents / registrations 34,200 44,850 37,400

Consents based on Buy-in levy stats 32,400 - -

Bonds 1,800 - -

Building Plan Approval fee 69,000 79,445 44,000

Administration fee 3,180 18,550 -

PENALTIES IMPOSED - 31,355

SECURITY ACCESS CONTROL 43,200 67,600 66,000

19,745,200 18,018,040 18,512,800 #REF!

220,000 116,350 216,780

1 Office 66,200 36,714 96,690

Building office & improvements 18,000 4,962 26,840

Plumbing 3,000 5,631 4,110

Electrical 7,200 - 12,840

Lights and bulbs 3,000 - 2,510

Pest control buildings 7,000 6,047 6,860

Alarm system, panic etc 4,000 - 5,140

Equipment 17,000 14,982 25,000

Fire Equipment /service 5,000 1,342 5,140

Aircon service 2,000 1,824 2,510

Generator maintenance - 1,926 5,720

2 Main gate 128,950 57,433 85,180

Building 46,750 20,592 13,480

Plumbing 6,000 8,414 5,720

Electrical 12,000 7,298 5,720

Signage 15,000 - 15,000

Waterfalls 6,000 8,925 6,000


Electric door,intercom etc 1,800 500 1,820

Paving 10,000 204 10,000

Aircon service 3,000 741 9,120

Generator maintenance 27,200 10,759 17,160

Budget

FY2019

REVENUE

EXPENSES:

CHOA - Detailed Budget FY2019 vs

Actuals FY2018 vs Budget FY2018

Actual

FY 2018

Budget

FY 2018

INFRASTRUCTURE MAINTENANCE - Building and fixtures

62

Budget

FY2019 CHOA

Actual

FY 2018

Budget

FY 2018

3 Top gate 11,200 7,869 18,210

Building 4,000 2,500 5,000

Plumbing 1,800 684 5,000

Electrical 5,400 3,185 5,000

Generator maintenance 1,500 3,210

4 Workshop 13,600 14,334 16,700

Building 10,000 12,636 10,000

Plumbing 1,800 1,698 2,350


Generator maintenance - - 2,000

9,636,200 8,805,359 9,282,250

1 Guarding Contract 8,527,700 8,009,394 8,098,790

Guarding 6,587,460 5,348,138 4,965,310

Perimeter patrol 726,390 1,329,722 1,672,280

Cleaning Service - Bidvest 76,450 71,770 72,120

Mobile armed response 1,137,400 1,259,764 1,389,080

2 Visitors system - Entry Pro/Secsyst 381,080 374,742 431,330

3 Other Security:Monit Net,wipes for readers, safety equipment33,360 43,873 98,960

Monitor Net-panic 13,360 14,496 24,530

Rule enforcement - outsourced - 4,800 12,720

Panic buttons/residents (Glovent) - - 39,170

Voice stress investigations (polygraphs) - 3,300 2,280

Security cleaning ( wipes) & other 9,000 12,546 7,540

Security safety equipment 11,000 8,731 12,720

4 Security maintenance project 150,000 19,550 50,000

5 Guard bonuses 35,000 35,000 35,000

6 Infrastructure 213,350 199,127 258,270

Electric Fence 90,000 79,971 85,000

Camtech (KH) 102,600 94,050 109,270

Fence technician tools 5,000 112 10,000

Auxillory Power Supply 3,600 - 4,000

Gates & locks 2,400 1,367 5,000

Perimeter maintenance 10,000 - 20,000

Strategic Lighting 15,000 21,138 15,000

Generator maintenance - 1,999 5,000

Lightning protection 3,000 490 5,000

7 Monitoring equipment 174,070 20,518 73,900

Control room equipment 12,000 9,912 10,000

CCTV cameras /XON new 122,070 7,186 7,000

Alarm systems 4,000 - 7,500

Street monitoring SLA - 3,420 14,400

Electrical river 6,000 - 5,000

River sensors 30,000 - 30,000

8 Access control 103,440 103,155 236,000

Booms 24,000 17,589 40,000

Access cntrl SLA (BK) 73,440 64,234 66,000

Turnstiles - 6,739 80,000

Other -software/alarm system - 4,846 30,000

Fingerprint readers repairs 6,000 9,747 20,000

891,300 719,979 797,850

1 Garden contract 811,879 761,289 760,020

2 SSC - portion of garden contract (405,940) (380,645) (380,010)

3 Gardens not included in contract 175,900 121,064 166,500

Garden contingency & irrigation 66,000 56,065 59,000

Maingate 54,400 53,304 71,000

Compost & Top Soil 3,000 - 15,000

Trees / flowers - 1,254 10,000

Garden Features 8,000 - -

Repair & maintenance garden equipment 28,500 24,153 26,000

Fertilizer & Pest Control 3,500 8,485 3,500

SECURITY OPERATIONS

GARDEN & RIVER MAINTENANCE

63

Budget

FY2019 CHOA

Actual

FY 2018

Budget

FY 2018

Sprinkler System 6,000 13,029 4,000

Casual Workers - Labour - (200) 7,000

Petrol & Oil 2,400 5,580 2,500

Safety equipment 3,000 1,003 3,000

Topgate 10,000 4,774 16,000

Trees 4,000 1,000 4,000

Fertilizer & Pest Control - - 5,000


Walking Trail 11,000 - 10,500

Trees 6,000 - 10,500

Beautification(Stepstone,Benches etc.) 5,000 - -

Trees & River Area 6,000 6,921 10,000

Poison (Weed Killer) 6,000 6,921 10,000

4 Wages, clothing and annuity 238,006 218,270 251,340

Salaries - gardeners 207,690 192,101 192,270

Annuity Liberty Allowance 21,396 20,520 46,770

Clothing Allowance 8,920 5,649 12,300

5 Additional gardens - Communal areas 100,000 - -

5,671,800 5,635,197 5,353,520

1 Management - Director's remuneration / Secretarial fees 346,460 317,294 310,930

Directors remuneration 176,400 141,827 168,000

Director reimbursement 149,410 147,007 121,970

Secretarial fees 20,650 28,460 20,960

AGM's 3,390 7,000 3,200

HOA meeting (minutes) 17,260 21,460 17,760

2 Bank costs & speedpoint charges 87,550 87,422 93,600

Bank Charges 7,800 7,710 8,400

Bank Charges - Collections 46,150 47,060 46,200

Speedpoint monthly rental & charges 33,600 32,652 39,000

3 Staff costs - Total 3,828,200 3,499,966 3,489,460

Staff costs - cost to company: 3,481,030 3,285,397 3,305,660

Salaries 3,335,600 3,162,629 3,169,300

Clothing office 40,750 24,565 28,000

Fuel allowances 57,877 55,055 55,060

Cellular contract costs 46,800 43,148 53,300

Other: Bonus& Leave prov,Training,Life & Disab,First aid,WorkmansComp347,178 214,569 183,800

SDL 36,160 32,202 28,800

UIF 18,015 16,762 17,400

Staff - Leave provision 108,000 20,989 -

Staff - Bonus provision 52,780 5,805 -

Training & development 18,000 24,527 35,000

Temp - 660 5,000

First aid box 3,600 10,408 6,000

Life & Disability cover (Momentum) 98,380 88,520 80,560

Compensation Commisioner 12,240 14,696 11,040

4 Office Equipment 220,010 196,337 216,940

Computers, printers and storage 107,510 83,211 108,220

Software / IT support- HOA 16,800 14,451 25,000

Anti-virus yearly 11,620 5,774 5,150

PC's /printers/ups 15,500 1,499 20,000

Payslip & tax consultant 28,440 26,860 28,000

Pastel softw supp+backup iron tree+buss intellig 12,850 12,121 8,500

Exchange diary office (GG) 7,900 9,117 7,970

Metrofile -storage 14,400 13,389 13,600

Rentals / Hire of Equipment 112,500 113,126 108,720

Copier 31,200 30,638 31,200

Switchboard 47,700 53,108 48,000

Bidvest Steiner 28,200 23,802 22,920

Oasis - water usage 5,400 5,578 6,600

MANAGEMENT & ADMINISTRATION

64

Budget

FY2019 CHOA

Actual

FY 2018

Budget

FY 2018

5 Communication costs 112,900 131,457 106,300

Postage / Courier fees 500 450 500

Autopage / ipads 19,800 25,926 34,800

Level 7 - Internet 57,200 58,091 -

Voice calls 32,400 45,509 64,000

Switchboard maintenance / support 3,000 1,482 7,000

6 Office General 98,720 126,161 95,760

Stationery & printing 61,500 67,555 55,200

AGM - Costs 24,220 45,998 24,960

AGM - projectors / presentation 14,000 19,500 14,000

AGM - Bar residents 4,500 15,398 3,000

AGM - staff assistance 5,720 11,100 7,960

Cleaning Materials 13,000 12,608 15,600

7 Insurance 276,170 273,423 262,760

Short term business+Fidelity 220,060 205,422 209,760

Excess payments - 15,549 4,500

Occupational Health & Safety 18,000 17,802 13,500

Public liability insurance 38,120 34,650 35,000

8 Vehicle & golf cart expenses 34,050 31,558 76,000

Motor vehicle expenses - fuel /oil 9,000 8,129 18,000

License/Service/Gen maintenance 7,050 4,720 8,000

Golf cart 18,000 14,789 44,000

Radar gun - 3,920 6,000

9 Professional services 144,020 491,279 240,230

Prof services: Auditors 63,500 93,787 99,000

Auditors fee 50,000 74,000 84,000

Auditors - secretarial & other 13,500 19,787 15,000

Prof services: Legal - 311,383 54,200

Prof services: Policies - 11,230 20,000

Prof services: Owners - 7,782 6,000

Prof services: Highveld Pauw - 6,897 -

Prof services: Architectural guidelines - 365 -

Prof services: Tshwane - 227,091 -

Prof services: Review staff contracts - 9,234 -

Prof services: Other - 48,784 28,200

Prof services: Membership 20,370 21,745 21,300

Membership fee - ARC 13,110 13,110 14,000

Membership fee - NAMA 1,785

Membership fee - CAISA 7,260 6,850 7,300

Prof services: Architect 51,750 61,834 33,000

Prof services: Surveys 8,400 2,530 8,400

Prof services: Ombud - - 24,330

Ombudsman levy- Income (254,850) (237,956) 24,330

Ombudsman levy expense 254,850 237,956 -

10 Relationship management 85,090 72,685 91,600

Entertainment 16,180 18,552 27,650

Meetings external 6,000 11,156 9,050

HOA office / staff function 5,180 6,963 13,600

Tshwane 5,000 433 5,000

Flowers & gifts 21,750 10,240 18,950

Directors birthdays 3,500 2,842 3,300

Directors resigning 10,000 - 3,500

Birthdays staff - office & gardeners 4,050 4,450 4,250

Other: owners / funerals 4,200 2,948 7,900

Meetings & Office refreshments 47,160 43,893 45,000

Groceries (Office/meetings/owners) 22,800 18,005 21,000

Refreshments (Office) 5,160 7,124 7,200

Meeting costs - Directors 19,200 18,764 16,800

65

Budget

FY2019 CHOA

Actual

FY 2018

Budget

FY 2018

11 Board alignment (Directors dinner) 12,750 - 21,000

12 Municipal Charges (Tshwane & Office water/electricity) 425,820 407,515 348,840

Tshwane - rates 180 77 180

Tshwane - water & electricity 353,640 334,056 277,860

SSC - electricity 72,000 73,382 70,800

13 Rent of premises 100 100 100

2,354,900 2,241,603 2,241,810

SSC Social membership fee 1,849,900 1,761,758 1,761,800

Portion of LL garden contract 405,900 380,645 380,010

Social event contributions 36,000 16,900 30,000

Treatment of infected trees - 22,800 -

Flood damage portion 63,000 59,500 70,000

611,000 499,552 620,590

1 Public Relations & Community Affairs 144,500 102,119 156,590

1 Printing & publications 89,500 93,279 103,630

General / TLG Publishing 14,500 13,680 22,130

SMS'e 16,000 19,185 15,000

Hosting domain /website 2,500 1,995 6,000

Glovent portal / communication to owners 51,000 54,161 51,000

CI - standard for all documents 4,000 4,258 6,000

Directors photo's 1,500 - 3,500

2 Functions 35,000 1,640 32,960

Residents Function (Chairperson's golf day) 30,000 - 27,960

Fun run / charity drive / other 5,000 1,640 5,000

3 Decorations - Xmas lights 20,000 7,200 20,000

2 Municipal responsibilities 149,100 126,747 143,700

Refuse removal - municipal strikes - 8,522 -

Street light repairs - - 3,000

Road markings & traffic signs 30,000 21,286 30,000

Tarmac and Paving 100,000 52,821 100,000

Substation monitor - Irene / John Vorster 12,720 36,118 -

Water readings- sinkhole prevention 6,360 8,000 10,700

3 Minor Projects - Board decision 95,000 69,062 84,000

Aircon- office & maingate 15,000 - 24,000

Repair fibre - 8,322 -

Beautification- special project 15,000 14,572 15,000

Speedsentry displays 25,000 33,050 30,000

Paint stand numbers 25,000 - 15,000

Golf cart registration 15,000 - -

Speed camera-power points - 13,118 -

4 Recycling 105,400 91,124 106,300

5 Flood damage 180,000 170,000 200,000

Less: SSC portion (63,000) (59,500) (70,000)

CAPITAL PROJECTS - Provision for future maintenance 360,000 - -

OPERATIONAL BUDGET SURPLUS before Depr,tax,cont 726,100 1,665,520 758,300

Depreciation 55,800 60,102 56,500

Taxation 180,000 197,978 129,600

Contingency 582,000 564,000

NET Operating budget (shortfall)surplus after tax,depr, contingency(91,700) 1,407,440 8,200

MISCELLANEOUS

SPORTS & SOCIAL CLUB

66

YTD YTD YTD

19,271,100 19,683,560 412,460

LEVIES - Total 18,552,662 18,547,402 (5,260)

Basic levy 18,225,203 18,224,943 (260)

SSC - social membership fee 276,567 276,567 -

SSC - capital projects 414,850 414,850 -

SSC - capital projects (414,850) (414,850) -

Free levy - supply to energizers (6,000) (11,000) (5,000)

SSC - Security levy 56,892 56,892 -

INVESTMENTS 284,600 485,608 201,008

Interest on bank balance 284,000 479,732 195,732

Interest 7 day Notice 20,000 75,463 55,463

Interest money market 24,000 105,155 81,155

Interest fixed deposit 240,000 299,114 59,114

Interest levy debtors 600 5,876 5,276

REGISTRATION FEES 286,500 408,750 122,250

Estate agents 202,500 211,690 9,190

Service providers 30,000 39,780 9,780

Tenant registration / rental fee 54,000 155,870 101,870

Golf carts - 1,410 1,410

SERVICE FEES 81,400 142,845 61,445

Concents 37,400 44,850 7,450

Building Plan Approval fee 44,000 79,445 35,445

Administration fee - 18,550 18,550

SUNDRY INCOME 66,000 98,955 32,955

Penalties / Fines - 31,355 31,355

Fingerprints 66,000 67,600 1,600

18,512,800 18,018,039 494,761

216,804 116,351 100,453

1 Office 96,697 36,715 59,982

Building - Office & improvements 26,840 4,962 21,878

Plumbing 4,110 5,631 (1,521)

Electrical 12,840 - 12,840


Pest control buildings 6,860 6,047 813

Alarm system, panic etc 5,148 - 5,148

Equipment 25,005 14,982 10,023

Fire equipment / service 5,140 1,342 3,798

Aircon service 2,520 1,824 696


2 Main gate 85,175 57,432 27,743

Building 13,483 20,592 (7,109)

Plumbing 5,724 8,414 (2,690)

Electrical 5,724 7,298 (1,574)

Signage 15,000 - 15,000

Waterfalls 6,000 8,925 (2,925)


Electric door,intercom etc 1,824 500 1,324

Paving 10,000 204 9,796

Aircon service 9,120 741 8,379


3 Top gate 18,228 7,869 10,359

Building 5,004 2,500 2,504

Plumbing 5,004 684 4,320

Electrical 5,004 3,185 1,819


4 Workshop 16,704 14,335 2,369

Building 10,000 12,636 (2,636)

Plumbing 2,352 1,698 654


Generator maintenance 2,000 - 2,000

CHOA Statement of Comprehensive Income February 2018

OPERATIONAL INCOME

Budget Actual Variance

REVENUE:

EXPENSES:

INFRASTRUCTURE MAINTENANCE: Buidling and fixtures

67

YTD YTD YTD


9,282,250 8,805,359 476,891

1 Guarding contract 8,098,790 8,009,394 89,396

Protea Coin - Guarding service 4,965,310 5,348,138 (382,828)

Protea Coin - Perimeter patrol 1,672,280 1,329,722 342,558

Protea Coin - Cleaning service 72,120 71,770 350

Protea Coin - Mobile armed response 1,389,080 1,259,764 129,316

2 Visitors system - Secsyst 431,330 374,742 56,588

3 Other: Monitor net, wipes,safety equipment 98,960 43,873 55,087

Monitor Net - control room/panic 24,530 14,496 10,034

Rule enforcement 12,720 4,800 7,920

Panic buttons - residents (Glovent) 39,170 - 39,170

Voice stress investigation (polygraphs) 2,280 3,300 (1,020)

Security cleaning & other 7,540 12,546 (5,006)

Security safety clothes & equipment 12,720 8,731 3,989

4 Security maintenance project 50,000 19,550 30,450

5 Guard bonuses 35,000 35,000 -

6 Infrastructure 258,270 199,127 59,143

Electric Fence 85,000 79,971 5,029

Contract -fence (KH) 109,270 94,050 15,220

Fence technician tools 10,000 112 9,888

Auxillory Power Supply 4,000 - 4,000

Gates & locks 5,000 1,367 3,633

Perimeter maintenance 20,000 - 20,000

Strategic Lighting 15,000 21,138 (6,138)

Generators -fuel & maintenance 5,000 1,999 3,001

Lightning protection 5,000 490 4,510

7 Monitoring Equipment 73,900 20,518 53,382

Control room equipment 10,000 9,912 88

CCTV cameras / XON 7,000 7,186 (186)

Alarm systems 7,500 - 7,500

Street monitoring SLA / Online admin 14,400 3,420 10,980

Electrical river 5,000 - 5,000

River sensors 30,000 - 30,000

8 Access Control 236,000 103,155 132,845

Booms 40,000 17,589 22,411

Access control & maintenance - contract 66,000 64,234 1,766

Turnstiles 80,000 6,739 73,261

Fingerprint readers maintenance 20,000 9,747 10,253

Other 30,000 4,846 25,154

797,850 719,977 77,873

1 Garden contract 760,020 761,289 (1,269)

2 SSC - portion of garden contract (380,010) (380,645) 635

3 Gardens not included in contract 166,500 121,064 45,436

Contingency 50,000 42,892 7,108

Irrigation system pump 9,000 13,173 (4,173)

Maingate 71,000 53,303 17,697

Compost & Top Soil 15,000 - 15,000

Garden Features 10,000 1,254 8,746

Repair & maintenance garden equipment 26,000 24,153 1,847

Fertilizer & Pest Control 3,500 8,485 (4,985)

Sprinkler System 4,000 13,029 (9,029)

Casual Workers - Labour 7,000 (200) 7,200

Petrol & Oil garden equipment 2,500 5,580 (3,080)

Safety equipment 3,000 1,003 1,997

Topgate 16,000 4,774 11,226

Trees 4,000 1,000 3,000

Fertilizer & Pest Control 5,000 - 5,000


Walking Trail 10,500 - 10,500

Trees 10,500 - 10,500

Trees & River Area 10,000 6,921 3,079

Poison (Weed Killer) 10,000 6,921 3,079

4 Wages, clothing & annuity 251,340 218,269 33,071

Salaries gardeners 192,270 192,101 169

Annuity Liberty Allowance 46,770 20,520 26,250

Clothing Allowance 12,300 5,649 6,651

GARDEN & RIVER MAINTENANCE

SECURITY OPERATIONS

68

YTD YTD YTD


5,353,513 5,635,199 (281,686)

1 Management-Directors remuneration / Secretarial fees 310,930 317,294 (6,364)

Directors remuneration 168,000 141,827 26,173

Directors reimbursement 121,970 147,007 (25,037)

Secretarial fees 20,960 28,460 (7,500)

AGM's 3,200 7,000 (3,800)

HOA & Security meeting 17,760 21,460 (3,700) -

2 Bank costs & Speedpoint charges 93,600 87,422 6,178

Bank Charges 8,400 8,264 136

Bank Charges - Collections 46,200 47,060 (860)

Speedpoint charges 39,000 32,652 6,348

Interest finance lease - (554) 554 -

3 Staff costs - Total 3,489,453 3,499,966 (10,513)

Staff costs - cost to company 3,305,653 3,285,397 20,256

Salaries 3,169,293 3,162,629 6,664

Clothing office 28,000 24,565 3,435

Fuel allowances 55,060 55,055 5

Cellular contract costs 53,300 43,148 10,152

Other: Bonus & leave provision, Training, Life & Disability 183,800 214,568 (30,768)

SDL 28,800 32,202 (3,402)

UIF 17,400 16,762 638

Staff - Leave provision - 20,989 (20,989)

Staff - Bonus provision - 5,805 (5,805)

Training & development 35,000 24,527 10,473

Temp 5,000 660 4,340

First aid box 6,000 10,408 (4,408)

Life & Disability cover (Momentum) 80,560 88,520 (7,960)

Compensation Commissioner 11,040 14,696 (3,656) -

4 Office Equipment 216,940 196,337 20,603

Computers, printers,storage 108,220 83,211 25,009

Software Support-HOA 25,000 14,451 10,549

Antivirus yearly 5,150 5,774 (624)

PC's /printers /ups 20,000 1,499 18,501

Payslip & tax consultant 28,000 26,860 1,140

Pastel software support 8,500 12,121 (3,621)

Exchange diary - office 7,970 9,117 (1,147)

Metrofile - storage 13,600 13,389 211

Rentals/Hire of Equipment 108,720 113,126 (4,406)

Copier 31,200 30,638 562

Switchboard 48,000 53,108 (5,108)

Bidvest Steiner 22,920 23,802 (882)

Oasis 6,600 5,578 1,022 -

5 Communication costs 106,300 131,457 (25,157)

Postage / Courier fees 500 450 50

Swithcboard 64,000 103,599 (39,599)

Autopage / ipads 34,800 25,926 8,874

Switchboard maintenance / support 7,000 1,482 5,518

6 Office General 95,760 126,162 (30,402)

Stationary & printing 55,200 67,555 (12,355)

AGM costs 24,960 45,998 (21,038)

AGM - projectors / presentation 14,000 19,500 (5,500)

AGM - Refreshments & Bar residents 3,000 15,398 (12,398)

AGM - staff assistance 7,960 11,100 (3,140)

Cleaning Materials 15,600 12,608 2,992

7 Insurance 262,760 273,424 (10,664)

Short term business 209,760 205,422 4,338

Excess payments 4,500 15,549 (11,049)

Occupational Health & Safety 13,500 17,802 (4,302)

Public liability 35,000 34,650 350 -

MANAGEMENT & ADMINISTRATION

69

YTD YTD YTD


8 Vehicle & golf cart expenses 76,000 31,559 44,441

Motor vehicle expenses -fuel /oil 18,000 8,129 9,871

License / Service / General maintenance 8,000 4,720 3,280

Golf cart 44,000 14,789 29,211

Radar gun 6,000 3,920 2,080 -

9 Professional services 240,230 491,279 (251,049)

Prof services: Auditors 99,000 93,787 5,213

Prof services - Auditors fee 84,000 74,000 10,000

Prof services - Auditors - secretarial fee 15,000 19,787 (4,787)

Prof services: Legal 50,000 311,384 (261,384)

Prof services - Policies 20,000 11,230 8,770

Prof services - Owners 6,000 7,782 (1,782)

Prof services - Architectural guidelines - 365 (365)

Prof services - Tshwane - 227,091 (227,091)

Prof services - Review staff contracts - 9,234 (9,234)

Prof services - Other 24,000 48,784 (24,784)

Prof services- Road infrastructure - 6,897 (6,897)

Prof services: Membership 25,500 21,745 3,755

Prof services - NAMA 4,200 1,785 2,415

Membership fee - ARC 14,000 13,110 890

Membership fee - CAISA 7,300 6,850 450

Prof services: Architect 33,000 61,834 (28,834)

Prof services: Surveys 8,400 2,530 5,870

Prof services: Ombud 24,330 - 24,330

Ombudsman 262,286 237,956 24,330

Ombudsman (237,956) (237,956) 0

10 Relationship management 91,600 72,685 18,915

Entertainment 27,650 18,552 9,098

Meetings external 9,050 11,156 (2,106)

HOA office / staff function 13,600 6,963 6,637

Tshwane 5,000 433 4,567

Flowers & gifts 18,950 10,240 8,710

Directors birthdays 3,300 2,842 458

Directors resigning 3,500 - 3,500

Birthdays staff - office & gardeners 4,250 4,450 (200)

Other - owners / funerals 7,900 2,948 4,952

Meetings & Office refreshments 45,000 43,893 1,107

Groceries (Office) 21,000 18,005 2,995

Refreshements (Office) 7,200 7,124 76

Meeting costs - Directors 16,800 18,764 (1,964)

11 Board alignment (Directors dinner) 21,000 - 21,000

12 Municipal Charges 348,840 407,514 (58,674)

Tshwane - rates 180 77 103

Tshwane - water & electricity 277,860 334,056 (56,196)

SSC - electricity 70,800 73,382 (2,582)

13 Rent of premises 100 100 -

2,241,810 2,241,603 207

Social membership fee 1,761,800 1,761,758 42

Portion of LL garden contract 380,010 380,645 (635)

Social event contributions 30,000 16,900 13,100

Treatment of infected trees - 22,800 (22,800)

Flood damage portion 70,000 59,500 10,500

620,590 499,550 121,040

1 Public Relations & Community Affairs 156,590 102,119 54,471

1 Printing & publications 103,630 93,279 10,351

General / TLG Publishing 22,130 13,680 8,450

Sms'e 15,000 19,185 (4,185)

Hosting domain / website 6,000 1,995 4,005

Glovent portal - communication to owners 51,000 54,161 (3,161)

CI standards for all documents 6,000 4,258 1,742

Directors photo's 3,500 - 3,500

2 Functions 32,960 1,640 31,320

Residents function (Chairperson's golf day) 32,960 1,640 31,320

3 Decorations - Xmas lights 20,000 7,200 12,800

MISCELLANEOUS

SPORT & SOCIAL CLUB (SSC)

70

YTD YTD YTD


2 Municipal Responsibilities 143,700 126,746 16,954

Refuse removal - municipal strikes - 8,522 (8,522)

Street light repairs 3,000 - 3,000

Road markings & traffic signs 30,000 21,286 8,714

Tarmac and Paving 100,000 52,821 47,179

Water readings - sinkhole prevention 10,700 8,000 2,700

Substation monitor (Irene/John Vorster) - 36,118 (36,118)

3 Minor Projects 84,000 69,062 14,938

Aircon office / maingate 24,000 - 24,000

Beautification 15,000 14,572 428

Paint stand numbers 15,000 - 15,000

Repair fibre - 8,322 (8,322)

Speed camera-power points - 13,118 (13,118)

Speedsentry displays 30,000 33,050 (3,050)

4 Recycling 106,300 91,124 15,176

5 Flood damage & tree removal 200,000 170,000 30,000

Less SSC portion of flood damage (70,000) (59,500) (10,500)

Operating surplus before depreciation, tax & contingency 758,300 1,665,520 907,220

Depreciation 56,500 60,102 (3,602)

Taxation 129,600 197,978 (68,378)

Contingency 564,000 - 564,000

NET Operating Income (Expense) 8,200 1,407,440 1,399,240

YTD YTD YTD

1,377,684 1,218,360 (159,324)

2,078,528 795,902 1,282,626

1/2017 300,000 - 300,000

2/2017 140,000 - 140,000

3/2017 40,000 - 40,000

4/2017 500,000 - 500,000

5/2017 250,000 - 250,000

7/2017 80,000 89,854 (9,854)

6&6a/2016 468,528 680,124 (211,596)

1/2018 80,000 - 80,000

2a/2018 150,000 25,924 124,076

2b/2018 70,000 - 70,000

(700,844) 422,458 1,123,302

YTD YTD YTD

414,850 414,850 -

172,657 173,000 (343)

SSC1/2018 - SSC upgrades 172,657 173,000 (343)

242,193 241,850 (343)

NET TOTAL FOR THE YEAR (450,451) 2,071,748 2,522,199

Variance

NET Capital Income (Expense) - CHOA

Repair & repave two gates

Replace golf cart

Improve sec access -alarm abilities

Budget Actual

ActualBudget Variance CAPITAL PROJECTS - CHOA

NET Capital Income (Expense) - SSC

CAPITAL PROJECTS - SSC

REVENUE: HOA Levy contribution

EXPENSES:

REVENUE: Buy-in levy

EXPENSES:

Improve sec access -fingerprint readers

Rejuvenation road surface

Repaint road after treatment

Bridges walking trail

Paint perimeter wall

Replace two booms

Replace license scanners

71

28-Feb-17 Notes 28-Feb-18 31-Jan-18

Assets

199,296 Non-current assets 139,193 143,539

199,294 Fixed assets 1 139,192 143,538

2 Property & plant equipment 2 1 1

6,571,695 5.96 Current assets 7,656,876 6.15 7,692,452 5.47

53,300 Accounts receivable - Levies 4a/b 135,920 173,238

548,800 Special levy receivable - completed 3a - -

3,400 Accounts receivable - Unallocated receipts 4c (2,160) (3,760)

64,666 Sundry debtors - Fixed deposit interest 51,835 15,000

- Santam insurance claim 101,567 24,682

621 Payments in advance 2,022 1,761

1,282 Deposits 5 5,672 1,282

500 Staff loans 250 500

5,899,126 5.35 Bank balances and cash: 7,361,772 5.92 7,479,748 5.32

158,468 FNB Current 136,547 164,123

740,658 FNB Money Market account - 5.15% 1,725,224 2,815,625

1,000,000 FNB 7 day Notice deposit - 6.90% 500,000 500,000

4,000,000 FNB Fixed deposit - 8.12% ( 5 Jan 2019) 4,000,000 4,000,000

FNB Fixed deposit - 8.12% (16 Feb 2019) 1,000,000 -

6,770,991 Total assets 7,796,069 7,835,990

Equity and liabilities

4,478,504 Capital and reserves 6,551,672 6,333,955

2,048,346 Retained income 6 3,457,206 3,399,020

1,672,351 Capital reserve fund CHOA 7a 2,094,809 1,969,849

1,000,000 Capital reserve fund (safety net) 7b 1,000,000 1,000,000

-242,193 Captital reserve fund SSC 8 (343) (34,914)

1,190,074 Non-current liabilities - 95,159

1,049,844 Special security project 9b - 85,070

140,230 Special security maintenance 9e - 10,089

1,102,413 Current liabilities 1,244,397 1,406,875

260,649 Accounts payable 10 155,620 246,797

154,121 Provisions 11 180,915 152,050

594,888 Levies paid in advance 655,454 681,059

Buy-in levy received - await registration 31,240 124,960

34,582 Ombudsman levy provision 41,538 19,804

Special security project (Mrc17-Feb18) 9a 84,138

Special security project (Mrc18) 9b 85,006

Special security maintenance (Mrc17-Feb18) 9d 8,066

Special security maintenance (Mrc18) 9e 11,098

58,173 SARS - Tax 83,526 90,000

6,770,991 Total equity and liabilities 7,796,069 7,835,990

Centurion Home Owners Association NPC

Statement of Financial Position February 2018

72

CHOA BUDGET vs ACTUALS (Operational) Budget Actuals Budget Actuals

Summary FY 2019 FY 2018 FY 2018 FY 2017

REVENUE 20,471,300 19,683,560 19,271,110 17,757,362

LEVIES 19,479,700 1,859 18,547,402 18,552,650 16,802,159

INVESTMENTS 537,000 51 485,608 284,560 393,464

REGISTRATION FEES 305,000 29 408,750 286,500 346,139

SERVICE FEES 106,400 10 142,845 81,400 103,820

SECURITY ACCESS CONTROL & SUNDRY INCOME 43,200 4 98,955 66,000 111,780

EXPENSES 19,745,200 18,018,039 18,512,800 17,511,794

INFRASTRUCTURE MAINTENANCE

Buildings & Fixtures 220,000 21 116,351 216,780 203,590

Office 66,200 36,715 96,690 94,167

Main gate 128,950 57,432 85,180 72,504

Top gate 11,200 7,869 18,210 23,928

Workshop 13,600 14,335 16,700 12,991

SECURITY 9,636,200 920 8,805,359 9,282,250 8,666,925

Guarding contract 8,527,700 8,009,394 8,098,790 7,711,792

Visitors system - SecSyst 381,080 374,742 431,330 413,950

Monitor Net, Wipes, Safety equipm, Voice stress 33,360 43,873 98,960 35,995

Security maintenance new projects 150,000 19,550 50,000 53,970

Guard bonusses 35,000 35,000 35,000 35,000

Infrastructure 231,600 199,127 258,270 275,970

Monitoring equipment 174,070 20,518 73,900 50,531

Access control 103,440 103,155 236,000 89,717

GARDEN & RIVER MAINTENANCE 891,300 85 719,978 797,850 694,782

Garden contract 811,879 761,289 760,020 709,188

SSC portion of garden contract (405,940) (380,645) (380,010) (354,594)

Gardens not incl in contract 147,394 121,064 166,500 145,255

Wages, clothing and annuity 238,010 218,269 251,340 194,933

Additional gardens - Communal areas 100,000 - - -

MANAGEMENT & ADMINISTRATION 5,671,800 541 5,635,199 5,353,520 5,013,042

Management - Directors/Secretarial 346,460 317,294 310,930 252,000

Bank costs & Speed point charges 87,550 87,422 93,600 92,722

Staff costs - Total 3,828,200 3,499,966 3,489,460 3,089,674

Staff costs - cost to company: 3,481,030 5.95% 3,285,397 12.1% 3,305,660 2,930,193

Salaries 3,335,600 5.47% 3,162,629 13.0% 3,169,300 2,797,912

Clothing office 40,750 24,565 28,000 28,626

Fuel allowances: 57,877 55,055 55,060 53,933

Cellular contract costs: 46,800 43,148 53,300 49,722

Other: Bonus& Leave prov,Training,Life & Disab,First aid,WorkmansComp347,178 214,569 183,800 159,481

Office Equipment 220,010 196,337 216,940 200,063

Communication 112,900 131,457 106,300 108,199

Office General: Printing & Stationery, AGM costs, Cleaning 98,720 126,162 95,760 75,741

Insurance 276,170 273,424 262,760 241,190

Vehicle & Golf cart 34,050 31,559 76,000 44,817

Professional Services 144,020 491,280 240,230 436,851

Prof services: Auditors 63,500 93,787 99,000 52,446

Prof services: Legal - 311,384 54,200 311,613

Prof services: Membership 20,370 21,745 21,300 34,674

Prof services: Architect 51,750 61,834 33,000 32,378

Prof services: Surveys 8,400 2,530 8,400 5,740

Prof services: Ombud - - 24,330

Relationship management 85,090 72,684 91,600 108,115

Board alignment (Directors dinner) 12,750 - 21,000 12,474

Municipal charges 425,820 407,514 348,840 351,097

Rent of premises 100 100 100 100

SPORTS & SOCIAL CLUB 2,354,900 225 2,241,603 2,241,810 2,290,921

Social membership fee 1,849,900 1,761,758 1,761,800 1,517,952

Portion of LL garden contract 405,940 380,645 380,010 354,594

Social event contributions 36,000 16,900 30,000 17,000

Flood damage portion 63,000 59,500 70,000 101,375

Treatment of infected trees - 22,800 - -

SSC - Bar upgrade - - - 300,000

73

CHOA BUDGET vs ACTUALS (Operational) Budget Actuals Budget Actuals

Summary FY 2019 FY 2018 FY 2018 FY 2017

MISCELLANEOUS 611,000 58 499,550 620,590 642,534

Public relations & Community affairs 144,500 102,119 156,590 121,700

Municipal responsibilities 149,100 126,746 143,700 122,679

Minor projects 95,000 69,061 84,000 110,499

Recycling 105,400 10 91,124 106,300 99,388

Flood damage 180,000 170,000 200,000 289,643

- Less SSC portion of flood damage (63,000) (59,500) (70,000) (101,375)

CAPITAL PROJECTS - PROVISION for future maintenance 360,000 34 - - -

OPERATIONAL SURPLUS(Before Depr, Cont, Tax) 726,100 1,665,521 758,310 245,570

Depreciation (55,800) (60,102) (56,500) (71,106)

Taxation (180,000) (197,978) (129,600) (135,694)

Contingency (3% of levy income) (582,000) - (564,000) -

NET OPERATING (SHORTFALL) SURPLUS (91,700) 1,407,441 8,210 38,770

CAPITAL PROJECTS - CHOA Budget Actuals Budget Actuals

FY 2019 FY 2018 FY 2018 FY 2017

REVENUE Buy-in levy 1,124,640 1,218,360 1,377,684 1,201,320

EXPENSES 980,000 795,902 2,078,526 334,862

Gabions at river exit - - 106,237

Resurface tennis court 25,080

Solar lights - strategic areas - - 6,857

Repair & repave two gates 680,124 468,526 31,474

Rejuvenation road surface - 500,000 -

Repaint road after treatment - 250,000 -

Circle at top gate - - 165,214

Bridges walking trail 89,854 80,000 -

Improve sec access - fingerprint readers 25,924 150,000

Improve sec access - alarm abilities - 70,000 -

Paint perimeter wall 300,000 - 2017/1 300,000 -

Preventative maintenance to electric fence 75,000

Improve sec access - fingerprint readers 80,000 -

Replace license scanners 140,000 - 2017/2 140,000 -

Replace three booms 75,000 - 2017/3 40,000 -

Improve security access - physical gates 150,000

Replace utility vehicle (gator or similar) 160,000 - 2018/1 80,000 -

NET CAPITAL INCOME (EXPENSE) CHOA 144,640 422,458 (700,842) 866,458

CAPITAL PROJECTS - SPORTS & SOCIAL CLUB Budget Actuals Budget Actuals

FY 2019 FY 2018 FY 2018 FY 2017

REVENUE - HOA LEVY CONTRIBUTION 435,590 414,850 414,850 251,136

EXPENSES 435,247 173,000 172,657 493,329

SSC 1/2018 SSC Upgrades 173,000 172,657 -

SSC 8/2017 SSC Kitchen equipment 493,329

SSC 1/2019 SSC Upgrades 435,247 - -

NET CAPITAL INCOME (EXPENSE) SSC 343 241,850 242,193 (242,193)

2017/6

2017/7

2018/2b

2019/1

2016/3

2016/4

2016/5

2016/6&6a

2017/4

2017/5

2018/2a

2019/5

2019/2

2019/3

2019/4

2019/7

2019/6

74

CHOA - CAPITAL EXPENDITURE AND FUNDING

STATUS OF PROJECTS

DATE

CAPITAL RESERVE FUND (Buy-in levy)

COMPLETED:

2016/6 &

6aRepair & repave paving at two gates 681,000 680,124

2017/7 Bridges walking trail 80,000 89,854

COMPLETED AND CANCELLED:

2018/2a Improve security access - fingerprint readers 150,000 25,924

CANCELLED:

2017/1 Paint perimeter wall 300,000

2017/2 Replace license scanners 140,000

2017/3 Replace two booms 40,000

2017/4 Rejuvenation of road surface 500,000

2017/5 Repaint road after treatment 250,000

2018/1 Replace golf cart 80,000

2018/2c Improve security access - physical gates 150,000

2018/4 Replace booms 40,000

NEW PROJECTS FOR APPROVAL:

2019/1 300,000 Sep 2018

2019/2 75,000 Sep 2018

2019/3 80,000 Oct 2018

2019/4 140,000 Nov 2018

2019/5 75,000 Feb 2019

2019/6 150,000 Feb 2019

2019/7 160,000 Aug 2018

795,902 980,000 Cash provision

AGM 2018

Project

No.PROJECT DETAILS

AGM

Approved

Budget

2018 AGM

Approval/

Cashflow

Required

Target

completion

date

Comments

Expen-

diture

YTD

Replace fingerprint readers

Improve security access - physical gates

Replace license scanners

Utility vehicle

Buy

in

levy

PTD - R711 598 Completed

Completed

All previous approved projects cancelled on recommendation by the Board of Directors. The 20-year capital projects revisited.

Paint perimeter wall

Spent R25 924 of approved R150 000. The balance of the project - cancelled

Preventative maintenance to electric fence

Replace booms

75

CHOA - DETAILS OF CAPITAL PROJECTS FOR 2019

2019/5 – Replace boomsThe current barriers were installed in 2009/10. The work cycle of the barriers average 24 000 openings a month. These barriers are showing wear and tear. The Board considered a maintenance evaluation report on all barriers and recommends replacing 3 barriers out of 7.

2019/6 – Improve security access – physical gatesRequests were received from residents to install physical gates at the Main Entrance to protect residents from riots or groups attempting to storm the gate and gain access. An appropriate structure needs to be considered as well as pricing.

2019/7 – Utility vehicleThe CHOA currently has 2 golf carts. One is used by the 4 gardeners servicing certain areas not covered by the garden contract. Their current golf cart is a refurbished cart bought 10 years ago. The members are asked to consider replacing this golf cart with the most economical and practical utility vehicle available, providing the same or better lifespan going forward.

2019/1 – Paint perimeter wall

The electric fence of 7,4km was installed 10 years ago. Due to UV exposure, wear and tear to the bobbins/tensioners (items that attach the wire to the poles) it become brittle, worn out and are arching. This creates false alarms and influences the voltage negatively. Replacement of the bobbins will be done in-house.

2019/3 – Replace fingerprints readersThe Board compared the existing fingerprint readers with the new Sagem range and it was found that the new reader has a faster processor and has the potential to read the fingerprint quicker. The historical readers were discontinued by the supplier and the Board therefore recommends to upgrade all the existing vehicle lanes as well as provide for back-up equipment. The CHOA will continue with the existing readers on the pedestrian access gates to end of life.

2019/4 – Replace license scannersThe visitor system has 5 Honeywell hand held scanners. The current scanners have reached the end of their life cycle and have become problematic. It is recommended we replace all 5 scanners with the replacement model.

The John Vorster boundary wall consists of mostly a 2,2m high plaster wall, erected by the developer. The wall plays a vital role in the security perimeter as well as the aesthetic appearance of the Estate approaching the Main Gate. The wall is currently in need of some damp repair, plaster repair, fiber seal of the top part and repainting in the Board approved colour scheme. The paint is expected to last for approximately 7 years.

2019/2 – Preventative maintenance to electric fence

76

SSC - CAPITAL EXPENDITURE AND FUNDINGSSC - CAPITAL EXPENDITURE AND FUNDINGSSC - CAPITAL EXPENDITURE AND FUNDINGSSC - CAPITAL EXPENDITURE AND FUNDING

Nr:Nr:Nr:Nr:

SSC 8/2017 CCC Kitchen equipment 500,000500,000500,000500,000 Completed 493,329493,329493,329493,329 251,136 (242,193)

SSC 1a/2018 Upgrade of lounge furniture 65,000 Completed 65,000

SSC 1b/2018 New banqueting chairs and tables 108,000 Completed 108,000 (343)

173,000173,000173,000173,000 173,000173,000173,000173,000

SSC 1c/2018-2019/12019/12019/12019/1

Patio furniture 100,000 254,615Amended

and completed

254,615

SCC 1e/2018-2019/22019/22019/22019/2

Squash courts 50,000 50,632Amended

and in progress

50,632

SSC 1f/2018-2019/32019/32019/32019/3

Bridge 16 (Moved bridge 6-7 to 16) 130,000 130,000 In progress 130,000 0

Nr:Nr:Nr:Nr:

S1d/2018 Build patio braai 35,000

S1g/2018 Tennis court 73,000

S1h/2018 Wood fire pizza oven 55,000

443,000443,000443,000443,000 435,247435,247435,247435,247 435,247435,247435,247435,247 Cash provision Cash provision Cash provision Cash provision

Projects to be cancelledProjects to be cancelledProjects to be cancelledProjects to be cancelled

CommentsCommentsCommentsCommentsAGM AGM AGM AGM

Approved Approved Approved Approved Budget Budget Budget Budget

End FY2017End FY2017End FY2017End FY2017

Amount Amount Amount Amount completed / completed / completed / completed / budgetedbudgetedbudgetedbudgeted

Funding Funding Funding Funding from from from from

CHOACHOACHOACHOA

Balance Balance Balance Balance SSC SSC SSC SSC

reserve reserve reserve reserve fundfundfundfund

Amended/ Amended/ Amended/ Amended/ Completed Completed Completed Completed

and in and in and in and in progressprogressprogressprogress

414,850

435,590

PROJECT DETAILSPROJECT DETAILSPROJECT DETAILSPROJECT DETAILS

First time upgraded. Remove all paint and refurbish floor with same wood


Floods damaging structure of bridge. Lifting and stabilizing

New chairs,table tops,cushions,reinforce- ment of couches,heaters,awning screens,décor.


Projects cancelled and re-allocated to 2019/1-3

77

CHOA PENALTY SYSTEM

Transgressions/Offences Penalty Mark with

X

1 Urinating in public R300

2 Fire in public areas and on building sites R500

3 Non-registered worker/Illegal immigrant on Property R750 per worker

4 Contractor workers on-site after hours & weekends R1600 per case

5 Workers wandering around off their building site R250 per worker

6 Damage to curbs, light poles, neighbouring stands, plants, etc. Cost of repairs plus 50%

administration fee

7

Speeding, ignoring stop signs, reckless driving, unlicensed

vehicles (quad bikes, golf carts), unlicensed driving and all other

traffic violations

R500 per offence

8 Dumping of building rubble on the golf course and common

areas R1000

9 Untidy building site, excessive rubble R300

10

Building Alterations – construction exceeding 6 months Double levy

Building Alterations – construction exceeding 9 months Triple levy

Building Alterations – construction exceeding 12 months 4 x levy

11

Any member placing unfair approval process of as-build

structures on the rest of the community to accept from January

2019 will be subject to a discouragement penalty fee

R7500

12

Continuous contraventions that are not rectified within

reasonable time will attract a monthly fine

12.1 Failure to maintain property in acceptable condition R350 p.m.

If repeated 6 months - Double levy

If repeated 12 months - Triple levy

12.2 Failure to rectify unacceptable colour schemes R300 p.m.

12.3 Failure to remove or rectify unacceptable structures R300 p.m.

12.4 Failure to address nuisance pets or excessive number of

pets R500 p.m.

13 Gardens that are neglected Cleaning cost + R250

14 Parking of trailers/caravans/boats on sidewalks or in driveways Admin fee of R50 and if repeated 3

times R300

15 Any motorized vehicles on golf course without permission

(excluding golf carts used on paths) R500

16 Illegal entry to the Estate R350

17

Activities that causes an aggravation and a nuisance to other

residents/ Country Club may be penalized at the discretion of

the General Manager or Safety & Security Manager

R500

18 Faeces left on communal areas and not picked up R500

19

The General Manager may in his sole discretion issue a penalty

to any resident, visitor or contractor who habitually transgresses

any of the rules or verbally or otherwise abuse the CHOA or

Security personnel by an amount up to a maximum of R2 500

R2500

After 30 days, unpaid penalties will be added to levy accounts where it will attract interest

Appeals against any penalty issued may be directed to the Board of Directors (in writing).

78

22nd ANNUAL GENERAL MEETING OF THE


of P.O. Box 66717, Highveld, 0169

Company Registration Number: 1995/013780/08

PROXY

I, ________________________________________________________________________________

(Please print full names)

Stand Number _________________

Address ________________________________________________________________

________________________________________________________________

being a member of the CENTURION HOMEOWNERS ASSOCIATION NPC, hereby

appoint :

M__________________________of____________________________________________(address)

Or falling him/her

M__________________________of____________________________________________(address)

as my proxy to vote for me and on my behalf at the Annual General Meeting to be held

on 27 June 2018 at the Centurion Country Club, or any adjournment thereof.

SIGNED THIS __________ DAY OF ___________________ 2018.

___________________________

SIGNATURE OF MEMBER

NOTES:

1. A member entitled to attend and vote is entitled to appoint a proxy to attend, speak and vote on his behalf, and such proxy needs not also to be a member of the Centurion HOA.

2. All proxies must be handed in at the entrance at least 30 minutes before the commencement of the meeting. 3. Proxies may not be used for voting purposes of Chairperson and Directors.

79

Documents

ANNUAL GENERAL MEETING 2018 - … · The SSC to present the amendment to the current projects for approval and cancellation ... Note and confirm the Penalty System. 10. 20:05 Voting