1. Kleinmeer Body Corporate
Finance Portfolio
Presentation to the Annual General Meeting
20 July 2016
Roy Singh

2. Presentation Outline
Highlights of the AFS for the year-ended 28 February 2016
Status of the Reserves / Surplus as at 28/02/16
Status and update on Levies (incl. outstanding) as at 28/02/16
Budget of Income and Expenditure for 2016/17 – for approval at this Annual General Meeting (Levy increase and Expenses)
Cost estimates of projects / proposals for 2016/17 and the impact on the accumulated reserves
Current issues / concerns that are receiving the attention of the Trustees

3. Highlights of the Annual Financial Statements as at 28 February 2016 - Summary
Total revenue for 2015/16: R (4.5% higher than 2014/15)
Levies of R and Sundry income of R
Total expenses: R (3.3% above 2014/15)
(includes Taxation provision of R22 331)
Surplus of income over expenses: R (5% of total income)
Lower levy increase (4.5% for 2015/16 compared to 6% for 2015/16) and marginally higher “expenditure” resulted in a lower surplus for the year
NB: Extra-ordinary maintenance / projects i.e. Solar Lighting etc. included in expenses therefore our reserves were not impacted!

4. Comments on Income and Expenditure: 2015/16
Income: Levy collections in line with Budget
Sundry Income:
Increased revenue from Clubhouse hire – increased use by residents!
Lower revenue from Fines = better understanding of the Conduct Rules resulting in fewer transgressions/Fines!! A positive sign!
Higher interest income – our reserves/surplus funds are optimally invested to earn higher yields/interest
Expenses:
General repairs and maintenance: 21% below budget
Special projects / extra ordinary maintenance: R – included in expenses (these expenses should be allocated from reserves/surplus)
Major expenses: Security & Garden Services in line with budgets
Overall general expense line items either below or in line with budgets

5. Status of the Reserves as at 28/02/16
Reserves/surplus as at 01/03/2013: R
Add: Surplus for the year to 02/2014: R
Reserves/surplus as at 01/03/2014: R
Add: Surplus for the year to 02/2015: R
Balance as at 01/03/2015: R
Add: Surplus for the year to 02/2016: R
Balance as at 01/03/2016: R
Add: Projected surplus for 2016/17: R
Projected accumulated surplus: 28 Feb 2017: R

6. Status of Levies (outstanding) as at 28/02/16
Total outstanding levies (in arrear) as per the Annual Financial Statements: 28 February 2016: R (0.0125%); (2014/15): R85 938
Current: R500; 30d: R31 227; 60d: R9 578; 90d: R6299
Levies in arrear as a percentage of annual levies: (0.0125%), previous year: (0.025%)
Levies received in advance/prepaid: R
Positive trend in levy collections to 30 June 2016

7. Budget of Income and Expenses for 2016 / 2017
Revised/Final Budget for 2016/17:
Total Revenue: R (6.6% higher than 2015/2016)
Levies of R : proposed Levy increase of 6% per annum - effective 01/03/16
Total Expenses: R (2.4% higher than 2015/16)
Budget increases kept in line with inflation (CPI of 6% per annum)
Wage increases projected at 8% per annum
Insurance increase projected at 15% per annum
All contracts: increases negotiated in line with CPI of 6% per annum
Garden services: no increase due to change in service provider
Clubhouse and Gym upgrades included in budgeted expenses

8. Cost estimates of proposed projects during 2016/17 and the impact on the accumulated Reserves
Reserves as at 28/02/16: R
Projected reserves for 2016/17: R
Projected reserve status including 2016/17 surplus: R
Less (estimated) cost of proposed “special” projects:
Fibre to the Home (DSTV; Intercom and Internet): R
Security upgrades: Under review, costs still to be determined
Revised reserves at 28 February 2017: R

9. Current Issues / Concerns that are receiving the attention of the Trustees
FTTH – Fibre to the Home project – Approved at the SGM on 28/06. Fibre Infrastructure to be installed by “Telkom” within an Open Access platform (i.e. residents are free to choose their own choice of service providers for internet access; data and cellular telephony)
Security upgrades – thorough investigation into the effectiveness of our Estate Security and developing a robust strategy to enhance our current Security to address breaches e.g. perimeter surveillance cameras; lighting; real time/live monitoring by Security personnel / Gatehouse etc

10. On behalf of the Kleinmeer Body Corporate Trustees Thank You for your support! Roy Singh 20 July 2016