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Table of Contents
1. The SHRA’s Programmes2. Medium Term Expenditure Framework3. Planned Targets and Achievements4. Medium Term Strategic Framework 2014 – 20195. Additional Performance6. External Auditor’s Report7. Irregular Expenditure8. Statement of Financial Position9. Statement of Financial Performance10. Statement of Changes in Net Assets11. Cash Flow Statement12. Recalled Grant Funds (SHIP Projects)13. Programme Costs14. Challenges15. Provincial MTSF Targets
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1. The SHRA’s programmes
REGULATORYAccreditation
Compliance MonitoringEnforcement
INSTITUTIONAL INVESTMENT (from
the Institutional Capacity Building
budget)Approval,
administration and disbursement of the
Institutional Investment grant
Research, best practiceStakeholder Engagement
INVESTMENT MANAGEMENT
Approval, Administration and disbursement of the Restructuring Capital
Grant (“RCG”)
ADMINISTRATION
CouncilOffice of the CEO
Corporate Services
2. Medium Term Expenditure Framework
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* Reduced from R827 543 million with virement of R230 000 million to NHFC
BudgetActual Expenditure Budget Budget Budget
Financial year 2014/15 2014/15 2015/16 2016/17 2017/18Operational Budget
33 480 34 418 34 560 36 392 38 212
Capital budget 597 543* 43 971 932 307 1 036 409 1 110 514
Institutional Investment Capital Budget
n/a n/a 41 936 40 183 38 489
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3. Planned Targets and Achievements
Programme Performance indicator
Audited/ Actual performance 2014
Planned Performance 2015
Qtr.1 Qtr.1 Qtr. 2 Qtr.2 Qtr. 3 Qtr.3 Qtr.4 Qtr.4
Annual Total
Variance
Target Actual Target Actual Target Actual Target Actual
1Number of SH units approved
2 279 5 668 2868 1432 2 800 3996 5398
The variance was -270 which equates to 5%.
There was only one performance indicator for 2014/15 due to operational budget constraints.
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Number of social housing units approved
5398 units approved (95%)
3. Planned Targets and Achievements
4. Medium Term Strategic Framework 2014 - 2019
The SHRA’s MTSF target for this five year period is the delivery of 27,000 social housing units.
The Department has split this target evenly over the five year period as follows:
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FY 2014/15 2015/16 2016/17 2017/18 2018/19 TOTAL
Target delivery of social housing units
5,400 5,400 5,400 5,400 5,400 27,000
Actual delivery of social housing units
2,053 2,053
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5. Additional Performance
Regulatory Programme• 61 social housing
institutions (SHI) were accredited– 8 fully accredited– 41 conditionally accredited– 12 pre-accredited
• 20,447 units under regulation
• 40% units are managed by fully accredited SHIs
Institutional Investment Programme
• Grants awarded:– 4 project acquisition and
feasibility grants– 4 pre-accreditation grants– 13 general capacity building
grants
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6. External Auditor’s Report
Audit opinion Unqualified
Emphasis of matter Going Concern (not qualified) - the Minister’s pronouncement about the SHRA being placed under Administration may cast doubt on the entity’s ability to operate as a going concern.
Compliance with laws and regulations
Reportable irregularities emanating from lack of a Corporate Services Manager which is a statutory position in terms of the Social Housing Act Section 8 (1) (c)
Expenditure management - the entity did not take effective steps to prevent irregular expenditure
Performance Information No material findings on usefulness and reliability of the reported performance information.
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7. Irregular expenditure
In terms of the Social Housing Act, No. 16 of 2008, the Council must consist of between seven and twelve non-executive members. During March 2014 to February 2015 and March 2015, the Council only comprised of six and five members respectively. Decisions taken by the Council during this period have been rendered invalid and the new Council will need to remedy these.
There was no fruitless and wasteful expenditure during the period under review.
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14. Challenges
Challenges Mitigation Measures
Planned targets were based on approval vis-à-vis delivery of social housing units
As from 2015/16, planned targets are based on delivery of social housing units
Coordination with Provincial Authorities
Provinces have been given social housing delivery targets that correspond to the SHRA’s
Credible pipeline Provincial Steering Committees to assume responsibility in development of credible pipeline
Construction cashflow planning
Improved pipeline planning and enhanced coordination between Province and Municipality will improve cashflow predictions
Debt funding for SHIs NHFC’s social housing targets for loan approvals must align to the SHRA’s
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15. Provincial MTSF targets
In order to ensure the delivery of units, the Provinces have been provided with correlating targets as follows:
Province 2015/16 2016/17 2017/18
Target: delivery of social housing units
Target: delivery of social housing units
Target: delivery of social housing units
E Cape 392 392 392
Free State 387 387 387
Gauteng 1981 1981 1981
KZN 617 617 617
Limpopo 210 210 210
Mpumalanga 309 309 309
N Cape 570 570 570
NW 113 113 113
W Cape 822 822 822
TOTAL 5,401 5,401 5,401