PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY PRESENTATION TO THE PORTFOLIO COMMITTEE ON POLICE Follow-up Meeting 28 August

PSIRA DELEGATION PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY REPRESENTATIVES Mr. Thula BopelaChairperson of Council Mr. Manabela ChaukeDirector Mr. Nick LigegeDeputy Director – Finance Adv. Philani MthethwaDeputy Director – Law Enforcement Mr. Isaac RaliomaSenior Manager – Human Capital Ms Zanele NgcoboSecretary to Council 3

PRESENTATION OVERVIEW PART A – Financial context PART B – Financial reporting –Quarter 4 of 2011/12 PART C – Financial reporting –Quarter 1 of 2012/13 PART D – HR Matters

FINANCIAL CONTEXT - REVENUE PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY 5 PSIRA does not receive any form of government assistance / grant PSIRA Revenue streams are as follows: –Annual fees from Security Providers (SP’s) –Annual fees from active Security Officers payable monthly –Security providers pay R4, p.a. –Security providers pay R7.00 p.m. for each SO employed –Security officers pay R84 p.a. through salary deductions –Revenue from services rendered i.e. Registration fees (both SO’s and SP’s) Disbursement fees – issuance of ID cards, Certificates, Processing of training (course) reports Fines issued at code of conduct enquiries

PART B Quarter 4 of 2011/12

BUDGET VARIANCE REPORT PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY 7 Actual 2012 Budget 2012Variance% Revenue % Other income % Total Revenue % Operating expenses % Employee related costs % Debt impairment % Total Operating expenses % Operating surplus % Investment revenue % Finance costs Surplus for the quarter %

FINANCIAL ANALYSIS PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY VARIANCE ANALYSIS Revenue below budget by 19% (R29.3m) as a result of delayed implementation of 2011 Annual Fees Operating expenses below budget by 12% (R18.4m) as a result of non- appointment of employees, expenditure savings and deferment of planned activities Cost of living adjustment for 2012 was 5.5% YEAR on YEAR REVIEW Revenue growth of 33% from R97m (2011) to R128m (2012) Expenditure growth of 15% from R97.7m (2011) to R138.3m (2012) However, expenditure growth slowed down from 23% in 2010/11 to 15% 8

PART C Quarter 1 of 2012/13

BUDGET VARIANCE REPORT PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY 10 Q Q1 BudgetVariance% Revenue % Other income % Total Revenue % Operating expenses % Employee related costs % Debt impairment % Total Operating expenses % Operating surplus % Investment revenue % Finance costs Surplus for the period %

FINANCIAL ANALYSIS PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY VARIANCE ANALYSIS Revenue billing on budget at R97.4m, despite penalties and interest not billed Operating expenses below target, as result of deferral of planned activities Debt impairment is above budget by 477%, due to provisions of bad debt in light of court case Debt impairment is due to members of SIA who are paying in terms of old annual fee rates, (on a monthly basis) The payment by SIA is in terms of Court Interdict Revenue exceeded expenditure by R19.9m 11

FINANCIAL ANALYSIS PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY FORECAST Debt impairment will reduce over the course of year, from R48m to R33.7m As a result of payments to be received on a monthly basis Revenue is estimated to be below budget by 4%, largely ascribed to penalties and interest that have been suspended Estimates indicate a surplus of R3.4m at year end 12

CASH COLLECTION PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY 13

PART D HR Matters

PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Remuneration of Council Chairperson R 1,237,875 R 1,331,048 R 1,390,945 Deputy Chairperson R 0,00 R 0,00 Council Members R 0,00 R 0,00

PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Employee and Council numbers 16 As at31 March June 2012 Staff Movement Council members330 Staff Members

PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY End 17