Annual Report 2011/12

Vision, Mission, Values (2011/12) Operational Highlights CONTENTS Vision, Mission, Values (2011/12) Operational Highlights Strategic Objectives Corporate Governance Organogram Annual Financial Statements SHRA Annual Report 2011.12

Mandate, Vision, Mission To invest in social housing and be able to regulate the sector Vision Affordable rental homes in integrated urban environments through sustainable institutions Mission The SHRA will regulate and invest to deliver affordable rental homes and renew communities SHRA Annual Report 2011.12

Operational Highlights Annual Financial Statements SHRA has now produced its first full set of Annual Financial Statements. An unqualified audit opinion was expressed by the external auditor. SHRA 2012-2016 Strategic Plan The 2012-2016 Strategic Plan was approved by DHS and signed off for implementation by the Minister. This was supported by the Annual Performance Plans which were also approved. Snapshot of Performance • Operational office infrastructure in place • Accreditation of 18 SHI’s (17 Conditional and 1 full, 8 declines) • Monitoring of 18 SHI’s • Capital Investment yielding 4 127 units • 19 Intervention grants SHRA Annual Report 2011.12

Strategic Objectives SHRA Annual Report 2011.12

Operational Highlights Stakeholder Management The following agreements have been signed as per the Social Housing Act during the year under review o North West : signed o Free State: signed o Eastern Cape: signed o KZN: signed o Limpopo: draft o Mpumalanga: draft o Gauteng: draft o Northern Cape: draft o Western Cape: draft Funders:- o NHFC : signed o DBSA: draft o DIGH: draft o AFD Nasho: draft Nurcha: draft SHRA Annual Report 2011.12

Corporate Governance SHRA Annual Report 2011.12

Organogram SHRA Annual Report 2011.12

SHRA Annual Report 2011.12

SHRA Annual Report 2011.12

SHRA Annual Report 2011.12

SHRA Annual Report 2011.12

Emphasis of Matter Emphasis Item Issue Restatement of Corresponding Figures Accounting Entry – closing/opening balance – interpretation Reportable Irregularity Treatment of Personal Service provider as company (tax deductions not effected) Pre-determined Objectives Did not follow SMART principals Supply Chain Management Policies, procedures and manager not in place Irregular Expenditure R1,8m incurred due to not obtaining 3 quotes Risk Management Policy, procedure and framework not in place SHRA was in start-up phase with only the basic policies, procedures and staff in place, whilst it had to start delivery immediately SHRA Annual Report 2011.12

Emphasis of Matter Emphasis Item Issue Action Restatement of Corresponding Figures Accounting Entry – closing/opening balance – interpretation None required Reportable Irregularity Treatment of Personal Service provider as company (tax deductions not effected) SARS engaged – case number obtained – PSP to declare this to SARS PSP resigned in 2012/13 Pre-determined Objectives Did not follow SMART principles Performance Objectives refreshed in line with SMART principles Internal Audit review Supply Chain Management Policies, procedures and manager not in place Manager appointed Policy and processes applied Training for staff Irregular Expenditure R1,8m incurred due to not obtaining 3 quotes Relates to Supply Chain Management Risk Management Policy, procedure and framework not in place Framework, policy and procedure in place Plan to appoint Management Accountant / Risk Officer SHRA Annual Report 2011.12