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Social Housing Foundation [PMG note: photo’s have been removed]. Presentation to Portfolio Committee on Housing 14 May 2008. “Building Communities, Building Social Housing”. Contents. Mandate Company Structure and Strategic Objectives Key Performance Areas - PowerPoint PPT Presentation
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Social Housing Social Housing
FoundationFoundation[PMG note: photo’s have been removed][PMG note: photo’s have been removed]
“Building Communities,
Building Social Housing”
Presentation to Portfolio Presentation to Portfolio
Committee on Housing 14 Committee on Housing 14
May 2008May 2008
Contents
1. Mandate2. Company Structure and Strategic
Objectives3. Key Performance Areas4. Provincial Operations & Priorities for
MTEF5. Financial Implications6. Corporate Governance
1. Mandate[PMG note: photo’s have been removed][PMG note: photo’s have been removed]
1. Mandate (1)
1.1 Legal StatusThe Social Housing Foundation was established as a section 21 company in 1997 under the Companies Act (Act 61 of 1973). The Social Housing Foundation (SHF) is a Schedule 3A Public Entity as indicated in the PFMA and Treasury Regulations
1.2 MissionThe mission of the SHF is to provide strategic services towards creating and developing a sustainable and vibrant social housing sector in South Africa
1. Mandate (2)
1.3 Mandate• The organisation was established as a national institution and is
formally mandated by the National Department of Housing to develop and build capacity for social housing institutions and to develop a policy framework for the social housing sector through the Housing Amendment Act 20 of 1999.
• SHF has also been mandated by NDoH to be the Implementing Agent for the Interim Social Housing Programme (in the absence of SHRA)
• SHF has championed the new National Rental Housing Strategy.• SHF is the entity that has been tasked to manage the
VROM/NDoH MOU.• SHF is working with the SIU at NDoH on the Turnaround of
distressed projects.
1.4 Mandate (contd)•Central to this goal, SHF creates credible social housing institutions (SHIs) and simultaneously develops housing capacity.
•We deliver expertise, products and services in response to the challenges impacting the South African social housing environment.
1. Mandate (3)
1. Mandate (4)1.4 Mandate (contd)Expertise - project development
- project packing
- project modeling
- property management
Services - advise
- facilitation
- information research
- training
Products - tools
- methodologies
- best practise (models)
2. Company Structure[PMG note: photo’s have been removed][PMG note: photo’s have been removed]
2. Company Structure (1)
2.3 Structure
Executive Management
Strategic Management Stakeholder Management Organisational Development Organisational Performance
Implementation of programmes
Delivery arm Support Research Financial Planning & Management
Systems Development, budgeting, cost control, procurement & reporting
Management Information
2.4 Alignment
ISHP
Long Term Funding
• Grants/Subsidies
• Bridging/Equity
(TUHF)
• Loans (P/Sector)
PROJECTPROGRAM:
OUTCOMES:
PSSP
Increase Number of Units Delivered
SHI SUPPORT (Technical)
R & D TURNAROUND(Dept. Lead)
• Regulator Skills Developed• Base Information for SHRA• Social Housing Act
Funding & MonitoringYear 2006/2007
• Prov S/Com• LGSHF• Tools & Product
• Project Planning & Packaging
• Project Development
• Property Management
Monitoring & Evaluation
• KWTHA• AHA• EHI• FREE STATE
• Consultants• Contract Staff• Permanent Staff
• Contract Staff• Permanent Staff
SALGA/VNG
• Contract Staff• Permanent Staff• TA’s (Rooftops
Support)
• Permanent Staff• Contract Staff
• Permanent Staff• Consultants• Contract Staff• NDoH• Provinces• (NHFC)
PURPOSE:
HUMAN RESOURCES:
FUNDING RESOURCES:
NDoH NDoH/VROM/SALGA/VNG NDoH/VROM NDoH/NHFC & Provinces
Capacity (increase) to grow in Sector
2. Strategic Objectives[PMG note: photo’s have been removed][PMG note: photo’s have been removed]
2. Strategic Objectives (1)
2.1 Strategic Objectives (SO’s)
• SO 1: Policy Support• SO 2: Monitoring & Evaluation• SO 3: Delivery Agent’s support• SO 4: Sector Communication, professionalisation
and knowledge management• SO 5: Government Support• SO 6: Operational Management
2.2 Strategic
Objectives (SO’s) vs
Workstreams
3. Key Performance Areas[PMG note: photo’s have been removed][PMG note: photo’s have been removed]
3. Key Performance Areas (1)
3.1 Past Performance
Current
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
No. SHIs receiving funds 19 12 17 4 2 3 4
No. projects funded 13 33 28 4 4 4 5
No. units financed 1698 1440 1751 2000
No. SHIs receiving capacity development support 10 17 21 7 10 20 30
Number of workshops held with SHI personnel 8 19 25 24 24 24 24
Number of times where Technical Assistance were provided to SHI's 8 8 3 8 10 15 20
Number of SHI's using the tools created by SHF 13 18 24 24 24 30 30
IndicatorsProjectedPast
Performance
3. Key Performance Areas (2)
3.2 Current Performance
Current
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
No. SHIs receiving funds 19 12 17 4 2 3 4
No. projects funded 13 33 28 4 4 4 5
No. units financed 1698 1440 1751 2000
No. SHIs receiving capacity development support 10 17 21 7 10 20 30
Number of workshops held with SHI personnel 8 19 25 24 24 24 24
Number of times where Technical Assistance were provided to SHI's 8 8 3 8 10 15 20
Number of SHI's using the tools created by SHF 13 18 24 24 24 30 30
IndicatorsProjectedPast
Performance
3. Key Performance Areas (3)
3.3 ISHP : 2006/07Province Municipality SHI Project Units Value
Western Cape City of Cape Town Thubelisha N2 Gateway: Joe Slovo
705 42 582000
KZN uNgungundlovu Msunduzi Signal Hill 487 21 985 600
KZN eThekwini SOHCO Hillary Umkumbaan
364 29 414 828
KZN eThekwini SOHCO Lindar House 142 8 576 800
Sub-Total 102 559 228
Operations 4 690 402
Total 1 698 107 249 630
3.4 Turnaround InterventionsProvince Municipality Project No.Units Length of
Engagement
Eastern Cape Buffalo City KWTHA 759 9 months
Eastern Cape NMMM Abahlali 328 9 months
Western Cape City of Cape Town N2 Gateway: Joe Slovo
705 6 months
Mpumalanga Witbank EHI/Emahlaleni 676 12 months
3. Key Performance Areas (4)
3. Key Performance Areas (5)
3.5 Future Projections
Current
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
No. SHIs receiving funds 19 12 17 4 2 3 4
No. projects funded 13 33 28 4 4 4 5
No. units financed 1698 1440 1751 2000
No. SHIs receiving capacity development support 10 17 21 7 10 20 30
Number of workshops held with SHI personnel 8 19 25 24 24 24 24
Number of times where Technical Assistance were provided to SHI's 8 8 3 8 10 15 20
Number of SHI's using the tools created by SHF 13 18 24 24 24 30 30
IndicatorsProjectedPast
Performance
4. Provincial Operations (coverage)
[PMG note: photo’s have been removed][PMG note: photo’s have been removed]
4. Provincial Operations (coverage)(1)
4.1 Previous Output
PROVINCE SHI’S UNITS
Eastern Cape 7 13 522
Free-State 3 905
KwaZulu-Natal 6 4 454
Limpopo 1 500 in progress
Mpumalanga 3 1 966
North West 1 150
Western Cape 2 3 835
Gauteng 32 27 433
Northern Cape 1 511
TOTAL 56 52 776
4.2 Geographical Spread
PROVINCE LOCAL AUTHORITY NO OF PROJECTS NO OF UNITS
Gauteng City of Joburg 16 6073Ekurhuleni 5 3000City of Tshwane 5 1208
Sub-Total 26 10281
Eastern Cape Buffalo City 3 1182Sub-Total 3 1182
KZN Msunduzi 6 2820Ethekwini 11 3245
Sub-Total 17 6065
North West Rustenburg 2 9583Potchefstroom 2
Sub-Total 4 9583
Western Cape City of Cape Town 7 1199Sub-Total 7 1199
CRU PROJECTSFree State CRU
Dihlabeng 3 470Maluti 1 120Mangaung 3 80Masilonyana 1 75Mathjhabeng 3 158Metsimaholo 5 871Moqhaka 4 382
Sub-Total 20 2156
SH & RDPDihlabeng 1 50Kopanong (15 of 215 is RDP) 2 215
Sub-Total 3 265Free State Total 23 2421
Total 57 30731
PROVINCIAL PROJECT PIPELINE OVERVIEW
PROJECT DETAILS
SOCIAL HOUSING PROJECTS 4.3 Current
Pipeline
4. Provincial Operations (coverage)(4)
4.4 PSSP• PSC’s : set up in 6 provinces (Gauteng, KZN, W Cape, NW
Province, Free State, Eastern Cape• Eastern Cape requires technical support, Mpumalanga
lagging• PRZ’s : of the 13 as per Phase 1 in policy, 10 have council
resolutions.• CoJ, Tshwane, Ekurhuleni, eThekwini, CCT, Msunduzi, Buffalo
City, NMMM, Rustenburg/Potch, Mangaung on track• Nelspruit, Sol Plaatjie, Polokwane lagging.• Pipeline: process (both SH + CRU) – commitment from
province, municipality, SHI’s. Tools provided – capacitation. Strategy which goes to sub-committees of NSHTT – outlines an approach, engagement, scan, unblocking, workshops
4. Provincial Operations (coverage)(5)
4.5 Turnaround Interventions• Finalise Abahlali – complete sales and transfers• Support KWTHA legal process• Complete N2 Gateway: Joe Slovo interventions• Fast-track EHI interventions• Welkom projects to come on board• Gauteng projects to come on board.• Other projects as per official list
4. Provincial Operations (coverage)(6)
4.6 ISHP 2007/08 + 2008/09 • 10 projects shortlisted with 4000 units• Will be able to fund 3 projects with approximately 1300 units
with R180m budget.• 2008/09 : Calls for proposals has begun using the existing
pipeline.• Will be able to build approximately 1500 units with R196m
budget• Unit works closely with both TSSP and PSSP
4. Provincial Operations (coverage)(7)
4.7 R&D + M&E• Multi-Disciplinary Task Teams appointment (with PSSP &
TSSP)• Working with City of Johannesburg – conducting a socio-
economic survey for San Jose/Zinn building (Constitutional Court ruling)
• Also working with Gauteng Department of Housing on Assessment of TRG intervention.
4. Provincial Operations (coverage)(8)
4.8 National Rental Strategy
4.9 Operational Burning Issues
5. Financial Implications[PMG note: photo’s have been removed][PMG note: photo’s have been removed]
Financial ImplicationsIncome and Expenditure 2007-2008 (Unaudited)
Financial ImplicationsBalance Sheet 31 March 2008 (unaudited)
Financial ImplicationsInternal Costs Breakdown (Unaudited)
Financial Implications Schematic Breakdown of Operational Costs
2007-2008
Financial ImplicationsISHP expenditure 2007-2008 (Unaudited)
Financial Implications Income & Expenditure Projections 2008-2009: Income
2008-2009 2009-2010 2010-2011 2011-2012
INCOME - DoHInterest received 922 503 750 000 750 000 750 000 Transfer funding - DoH 21 738 000 23 129 000 24 478 030 26 191 492
Other income 0 0 0 0
TOTAL INCOME - DoH 22 660 503 23 879 000 25 228 030 26 941 492
STRATEGIC OBJECTIVESSO 1 = Policy Support 205 600 230 000 240 000 250 000 SO 2 = Monitoring and Evaluation 1 707 000 1 420 000 1 530 000 1 600 000
SO 3 = Delivery Agent Support 4 302 000 4 170 000 4 440 000 4 440 000 SO 4 = Communication,Professionalisation, 1 933 600 1 967 000 2 199 000 2 358 000
SO 5 = Public Sector Support 829 200 740 000 770 000 800 000
INTERNAL COSTS 13 683 103 15 282 040 15 974 872 17 414 144
TOTAL COSTS 22 660 503 23 879 000 25 228 030 26 941 492
NET SURPLUS / (DEFICIT) 0 0 0 0
Financial Implications Income & Expenditure Projections 2008-2009 : Expenditure
INTERNAL COSTS Total 2009-2010 2010-2011 2011-2012
Annual report 140 000 160 000 160 000 170 000 Audit Fees 650 000 580 000 600 000 620 000 Consulting 597 000 600 000 636 000 680 520 Computer running costs 647 480 686 329 727 509 778 434 Depreciation 495 560 483 604 370 000 670 000 Legal Fees 213 500 200 000 200 000 302 029 Management Fee 276 000 270 000 270 000 270 000 Office running costs 1 555 952 1 686 089 2 065 847 1 927 938 Rent 1 431 737 1 560 592 1 692 079 1 844 366 Salaries - Gross 6 109 874 7 366 467 7 548 942 8 355 046 Staff recruitment costs 200 000 200 000 200 000 200 000 Staff training 360 000 381 600 404 496 432 811 Travel and accommodation- international 150 000 200 000 200 000 200 000 Travel and accommodation-domestic 856 000 907 360 900 000 963 000
TOTAL 13 683 103 15 282 040 15 974 872 17 414 144
Financial Implications Income & Expenditure: Breakdown of Operational Portion
Annual report
Audit Fees
Consulting
Computer running costs
Depreciation
Legal Fees
Management Fee
Office running costs
Rent
Salaries - Gross
Staff recruitment costs
Staff training
Travel and accommodation- international
Travel and accommodation-domestic
Annual report 140 000 Audit Fees 650 000 Consulting 597 000 Computer running costs 647 480 Depreciation 495 560 Legal Fees 213 500 Management Fee 276 000 Office running costs 1 555 952 Rent 1 431 737 Salaries - Gross 6 109 874 Staff recruitment costs 200 000 Staff training 360 000 Travel and accommodation- international 150 000 Travel and accommodation-domestic 856 000
Financial Implications Income & Expenditure Projections : ISHP
5. Financial ImplicationsBalance Sheets
31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12Capital Employed
Accumulated Funds 17 825 290 17 825 290 17 825 290 17 825 290 17 825 290
17 825 290 17 825 290 17 825 290 17 825 290 17 825 290
Employment of Capital
Fixed Assets 579 290 521 730 600 000 550 000 550 000
Current Assets 198 031 000 132 623 559 74 095 290 39 075 290 18 905 290 Cash on Hand - SHF 18 000 000 18 092 559 18 745 290 18 505 290 18 305 290 Cash on Hand - ISHP 1 18 500 000 4 000 000 0 0 0 Cash on Hand - ISHP 2 161 000 000 40 000 000 0 0 0 Cash on Hand - ISHP 3 0 70 000 000 54 800 000 20 000 000 0 Accounts receivable & Deposits 531 000 531 000 550 000 570 000 600 000
Current Liabilities 180 785 000 115 320 000 56 870 000 21 800 000 1 630 000
Donor Funds - deferred income - ISHP 1 18 500 000 4 000 000 0 0 0 Donor Funds - deferred income - ISHP 2 161 000 000 40 000 000 0 0 0 Donor Funds - deferred income - ISHP 3 0 70 000 000 54 800 000 20 000 000 0 NHFC 493 000 528 000 570 000 600 000 630 000 Accounts payable 792 000 792 000 1 500 000 1 200 000 1 000 000
Net Current Assets 17 246 000 17 303 559 17 225 290 17 275 290 17 275 290
17 825 290 17 825 290 17 825 290 17 825 290 17 825 290
Financial Implications
MATERIALITY FRAMEWORK
Materiality Basis Guideline % % used Rand Value Materiality Value
Gross Income 0.25% to 1% 0.50% 22 660 503 113 303
Gross expenses 0.25% to 1% 0.50% 22 660 503 113 303
Total Assets 0.5% to 2% 1% 132 623 559 1 326 236
Net Income/loss 2.5% to 10% 3% 0 0
Fraud 100% of actual cost
Materiality is calculated for the company as a whole and not for each component. All componentsare indicators of performance. However, the gross expenses component would be selected as a basis for materiality calculation, as it is a reflection of the level of acvtivity of the company as awholeManagement would be requested to adjust all material misstatements detected accordingly.It should be noted that 100% of the cost of any fraud would be reported and adjusted for
6. Corporate Governance6.1 Governance• Executive Officer – Minister of Housing• Executive Authority – 7 members
– Requires 2 new members = NDOH advised• Accounting Authority – Board of Directors
– Requires 2 additional directors = NDOH advised• Accounting Officer – Managing Director• Board Committees – Audit (including fraud and risk); Human Resources, Ethics and
Remuneration = Charters in place• Board Technical Sub Committee for ISHP approvals in place• PFMA – Treasury Guidelines, King Code II and Protocol of Corporate Governance
compliant• Shareholders Compact = currently being reviewed by BOD• External audit – 10 years unqualified audit reports• Internal audit – in place, perform annual risk assessment and three targeted evaluations
annually = no major problems found• Fraud plan, Risk plan, Business Interruption plan, HR strategy plan in place• Employment Equity plan in place• NPO registration applied for and waiting confirmation