Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy Motsisi Chief Financial Officer

BudgetClaimed to date Actual Received R’000 Revenue State Accommodation Charges Private Accommodation Charges Management Fees (Municipal) Augmentation Other Expenditure Cleaning & Gardening Private Leases Rehabilitation, Repair and Maintenance Property Rates Municipal Services (Arrears)66 Other2 901 Deficit as at end of December 2011( ) PMTE Bank Balance (Overdraft)( ) Financial Performance of the PMTE

AllocationExpenditure % Exp % Exp 10/11 Projection Projected under / over Exp R’000 PMTE %73% Cleaning and Gardening %73% Leasing (Private owned) %74% Maintenance %72% Planned %68% Rehabilitation %90% Day-to-Day %76% Municipal Serv arrears Property Rates %81% Current %83% Arrears %58% Other %8% Expenditure Analysis of the PMTE

Expenditure on all items except Leasing is low in relation to the time lapsed and in comparison with the previous year's expenditure. The projection on WCS against Planned Maintenance and Rehabilitation is still too high. Expenditure is projected (R86 m) against projects with no allocation for the current year. Although this budget shows a possible over-expenditure of R 275 million; a trend analysis shows a projected under-expenditure of close to R 300 million. Property rates payments are low in relation to the last 11 years. The average expenditure for this item should be 75%. This is mainly due to Pretoria Region’s low expenditure which are only at 26%

Accommodation Charges (State Owned) Client Devolved Funds Invoiced Amount Received % Rec Outstanding R'000 Agriculture, Forestry and Fishing % - Arts & Culture % - Communications % 375 Correctional Services % - Defence and Military Veterans % - Environmental Affairs % GCIS % - Health % Health (Civitas) % - Higher Education % 105 Home Affairs % - Human Settlements % - Independent Complaints Directorate % - Justice and Constitutional Dev %

Accommodation Charges (State Owned) Client Devolved Funds Invoiced Amount Received % Rec Outstanding R'000 Labour % - Mineral Resources % 781 National Treasury % Public Service and Admin % 74 Public Works % - Rural Development and Land Reform % - SA Police Service % - SA Revenue Service % - Social Development % - Sports and Recreation % - Statistics SA % 176 Trade and industry % 14 Water Affairs % - Grand Total %

Accommodation Charges (State Owned) 97% of the amounts invoiced have already been received. (This represents 74% of the amount to be invoiced for the year). Fourth quarter invoices to be issued during January Payments by Clients currently on schedule. This might decrease in the new financial year as Clients insist on itemized billing Letters to DG’s to confirm occupation still to be signed off by act DG and send out with CD’s containing details. Letter to National Treasury prepared detailing re-allocation exercise. Recommendation that current year be invoiced against devolved amounts All four quarters of the Augmentation amount was invoiced and received in full

Accommodation Charges (Private) Client Invoiced Amount Received % Rec Outstanding R'000 Agriculture, Forestry and fishing % Arts & Culture % COGTA % Communications % Correctional Services %- 741 Defence and Military Veterans % DIRCO % DIRCO (PAP) % Environmental Affairs % Financial & Fiscal Commission % 650 GCIS % 0 Gender Equality Commission % Health % Higher Education % Home Affairs % Human Rights Commission % 586

Accommodation Charges (Private) Client Invoiced Amount Received % Rec Outstanding R'000 Human Settlements % ICD % Justice and Constitutional Development % Labour % Mineral Resources % National Prosecuting Authority % National Treasury % PALAMA % Parliament 40 00% 40 Public Enterprises % Public Protector % 818 Public Service and Admin % Public Service Commission % 328 Public Works % 0 Rural Development and Land Reform % SA Police Service %

Accommodation Charges (Private) Client Invoiced Amount Received % Rec Outstanding R'000 SAMAF % 575 SASSA Bfn % 574 SASSA Dbn % SASSA Jhb % SASSA Kimberley 84 00% 84 SASSA PE % SASSA Pta % SASSA Umt % Social Development % 0 Sports and Recreation % 832 Statistics SA % Tourism % Trade and industry % Transport % Water Affairs % Women,Children and People with Disabilities % Grand Total % 0

Accommodation Charges (Private) Private owned accommodation charges invoices for the first quarter were issued during April The invoices were based on the expenditure of the previous financial year. A reconciliation based on the actual expenditure in respect of the first quarter has been completed and additional invoices/ credit notes were issued. 72% of the amounts invoiced up to October 2011 have been received. Since July 2011, invoices have been issued retrospectively based on actual expenditure as the constant reconciliations confused the Client.

Municipal Services Client Amount claimed Amount Received Outstanding % Received Man Fee Rec R'000 Agriculture, Forestry and Fisheries % 351 Arts and Culture % 658 Basic Education % 0 Communications % 0 Coop Govt and Traditional Affairs % 191 Correctional Services % Defence and Military Veterans % Energy % 0 Environmental Affairs % 171 Financial and Fiscal Commission % 0 Gender Equality Commission % 0 Government Communications % 16 Health % 42 Higher Education % 127 Home Affairs % 1 146

Municipal Services Client Amount claimed Amount Received Outstanding % Received Man Fee Rec R'000 Human Rights Commission % 0 Human Settlements % 97 Ind Complaints Directorate % 39 Inter Relation and Coop % 186 Justice and Constitutional Dev % Labour % 527 Mineral Resources % 18 National Prosecuting Authority % 189 National Treasury % 154 PALAMA % 50 Public Enterprises % 28 Public Protector % 53 Public Services and Admin % 145 Public Works % Public Works (Unknown) % 12

Municipal Services cont. Client Amount claimed Amount Received Outstanding % Received Man Fee Rec R'000 Rural Dev and Land Affairs % 794 SA Micro Apex Fund % 0 SA Police Services % SA Revenue Service % 176 SA Social Security Agency % 175 SITA % 0 Social Development % 91 Sports and Recreation % 30 Statistics SA % 264 Tourism % 20 Trade and Industry % 0 Transport % 4 Water Affairs % 440 Grand Total %

PACE Recoveries Claimed Amount Amount ReceivedBalance% Recovered R’000 April % May % June % July % August % September % October % November % Total %

PACE Recoveries cont. Recovery rate on PACE is good 58% of total amount outstanding is for 30 Days 27% of total amount outstanding is for 60 Days 12% of total amount outstanding is for more than 90 Days 3% of total amount outstanding is from the previous financial year

Recoverable CA (current year) Month Amount Claimed Amount ReceivedOutstanding % Recovered R’000 April % May % June % July % August % September % October % November % December % %

Recoverable CA Total amount of R 380m outstanding 24% of total amount outstanding is for 30 Days 19% of total amount outstanding is for 60 Days 31% of total amount outstanding is for more than 90 Days 25% of total amount outstanding is from the previous financial years Significant amounts: –Defence R 273 million (Ongoing projects – Arms of Service) -30 days to 1 year –DIRCO R 59 million (Pan African Parliament and other) 30 days to 1 year –Government Printers R 48 million (The Client refuses to pay VAT inclusive invoices. PMTE not registered for VAT. Cannot submit a Tax Invoice) 1 to 2 years (CFO to intervene)

Age Analysis 30 Days60 Days90 Days> 90 Days Total 2011/12 Prev Years Total R’000 Accommodation (State Owned) , , Accommodation (Private) , Municipal Services , PACE Recoverable: CA Total % 24%23%12%11%70%30%

DPW Capital Budget AllocationExpenditure % Exp % Exp 10/11 Projection Projected under / over Exp R'000 DPW Capital %48% Departmental %71% Accessibility (Disabled) %57% Dolomite Risk Mngmnt %6% Land ports of Entry (BCOCC) %56% Prestige 0 00%54% 0 0 ICR %11% Special Projects %0%

Client Capital Budget AllocationExpenditure % Exp % Exp 10/11 Projection Projected under / over Expenditure R'000 Client Capital %67% Agriculture, Forestry and Fishing %60% Arts & Culture %34% Correctional Services %59% Defence and Military Veterans %83% Home Affairs %61% Justice %68% Labour %69% Rural Development %29% SA Police Service %76%