1. 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

2. BudgetClaimed to date Actual Received R’000 Revenue7 049 6425 000 5744 557 258 State Accommodation Charges3 369 6362 575 3262 530 658 Private Accommodation Charges2 931 9491 709 1851 314 472 Management Fees (Municipal)112 86885 87476 335 Augmentation630 189 Other5 0005 604 Expenditure4 946 937 Cleaning & Gardening120 522 Private Leases2 190 282 Rehabilitation, Repair and Maintenance2 178 403 Property Rates454 763 Municipal Services (Arrears)66 Other2 901 Deficit as at end of December 2011(389 679) PMTE Bank Balance (Overdraft)(2 179 780) Financial Performance of the PMTE

3. AllocationExpenditure % Exp % Exp 10/11 Projection Projected under / over Exp R’000 PMTE 7 049 641 4 946 93770%73% 7 270 039- 220 397 Cleaning and Gardening 204 584 120 52259%73% 160 696 43 888 Leasing (Private owned) 2 931 949 2 190 28275%74% 2 920 376 11 572 Maintenance 3 219 963 2 178 40368%72% 3 487 777- 267 814 Planned 2 205 830 1 437 48865%68% 2 481 733- 275 903 Rehabilitation 182 533 128 72771%90% 189 794- 7 261 Day-to-Day 831 600 612 18874%76% 816 251 15 349 Municipal Serv arrears 0 66 - 66 Property Rates 651 706 454 76370%81% 659 683- 7 977 Current 628 261 438 41370%83% 634 865- 6 604 Arrears 23 445 16 34970%58% 24 818- 1 373 Other 41 440 2 9017%8% 41 440 0 Expenditure Analysis of the PMTE

4. 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%

5. Accommodation Charges (State Owned) Client Devolved Funds Invoiced Amount Received % Rec Outstanding R'000 Agriculture, Forestry and Fishing 49 365 37 024 100% - Arts & Culture 20 088 15 066 100% - Communications 500 375 00% 375 Correctional Services 720 504 540 378 100% - Defence and Military Veterans 1 263 589 947 692 100% - Environmental Affairs 10 086 7 564 2 52133% 5 043 GCIS 16 12 100% - Health 7 798 5 849 3 89967% 1 950 Health (Civitas) 0 48 099 100% - Higher Education 419 314 20967% 105 Home Affairs 24 065 18 049 100% - Human Settlements 255 191 100% - Independent Complaints Directorate 268 201 100% - Justice and Constitutional Dev 257 690 193 267 128 84567% 64 422

6. Accommodation Charges (State Owned) Client Devolved Funds Invoiced Amount Received % Rec Outstanding R'000 Labour 28 276 21 207 100% - Mineral Resources 1 563 1 172 39133% 781 National Treasury 2 927 2 195 00% 2 195 Public Service and Admin 148 111 3733% 74 Public Works 31 379 23 534 100% - Rural Development and Land Reform 13 789 10 341 100% - SA Police Service 852 480 639 360 100% - SA Revenue Service 16 575 12 431 100% - Social Development 273 204 100% - Sports and Recreation 6 4 4100% - Statistics SA 704 528 35267% 176 Trade and industry 18 14 00% 14 Water Affairs 66 858 50 143 100% - Grand Total 3 369 637 2 575 326 2 500 19297% 75 134

7. 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 2012. 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

8. Accommodation Charges (Private) Client Invoiced Amount Received % Rec Outstanding R'000 Agriculture, Forestry and fishing 29 519 13 90747% 15 612 Arts & Culture 9 938 5 52556% 4 412 COGTA 14 364 12 22685% 2 138 Communications 5 942 00% 5 942 Correctional Services 41 950 42 691102%- 741 Defence and Military Veterans 121 520 72 51960% 49 001 DIRCO 9 308 15 010161%- 5 702 DIRCO (PAP) 34 047 28 60284% 5 445 Environmental Affairs 24 944 21 23685% 3 708 Financial & Fiscal Commission 650 00% 650 GCIS 6 343 100% 0 Gender Equality Commission 1 382 00% 1 382 Health 2 942 74625% 2 196 Higher Education 8 951 5 87766% 3 074 Home Affairs 89 648 59 64567% 30 003 Human Rights Commission 729 14320% 586

9. Accommodation Charges (Private) Client Invoiced Amount Received % Rec Outstanding R'000 Human Settlements 7 132 6 03285% 1 100 ICD 13 301 3 14124% 10 160 Justice and Constitutional Development 167 630 00% 167 630 Labour 56 992 19 31634% 37 676 Mineral Resources 5 728 4 55480% 1 174 National Prosecuting Authority 19 378 00% 19 378 National Treasury 18 735 00% 18 735 PALAMA 8 819 4 04246% 4 777 Parliament 40 00% 40 Public Enterprises 4 084 2 50461% 1 580 Public Protector 2 514 1 69667% 818 Public Service and Admin 13 536 14 923110%- 1 387 Public Service Commission 5 491 5 16394% 328 Public Works 103 045 100% 0 Rural Development and Land Reform 66 059 56 98886% 9 071 SA Police Service 497 085 514 456103%- 17 371

10. Accommodation Charges (Private) Client Invoiced Amount Received % Rec Outstanding R'000 SAMAF 575 00% 575 SASSA Bfn 1 456 88261% 574 SASSA Dbn 5 384 3 43864% 1 947 SASSA Jhb 4 781 3 62076% 1 160 SASSA Kimberley 84 00% 84 SASSA PE 17 922 00% 17 922 SASSA Pta 9 822 3 06631% 6 756 SASSA Umt 4 350 00% 4 350 Social Development 10 730 100% 0 Sports and Recreation 3 822 2 99078% 832 Statistics SA 133 813 57 76243% 76 051 Tourism 21 786 35 082161%- 13 297 Trade and industry 1 228 00% 1 228 Transport 16 955 15 38791% 1 569 Water Affairs 82 497 71 79487% 10 703 Women,Children and People with Disabilities 2 234 00% 2 234 Grand Total 1 709 185 1 225 08372% 0

11. Accommodation Charges (Private) Private owned accommodation charges invoices for the first quarter were issued during April 2011. 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.

12. Municipal Services Client Amount claimed Amount Received Outstanding % Received Man Fee Rec R'000 Agriculture, Forestry and Fisheries 11 999 7 370 4 62961% 351 Arts and Culture 19 137 13 823 5 31472% 658 Basic Education 2 0 20% 0 Communications 1 129 0 0% 0 Coop Govt and Traditional Affairs 5 261 4 012 1 24876% 191 Correctional Services 433 142 385 357 47 78589% 18 350 Defence and Military Veterans 440 123 321 384 118 74073% 15 304 Energy 30 0 0% 0 Environmental Affairs 7 622 3 584 4 03847% 171 Financial and Fiscal Commission 395 0 0% 0 Gender Equality Commission 505 0 0% 0 Government Communications 620 326 29453% 16 Health 4 657 872 3 78519% 42 Higher Education 3 018 2 672 34589% 127 Home Affairs 40 294 24 072 16 22260% 1 146

13. Municipal Services Client Amount claimed Amount Received Outstanding % Received Man Fee Rec R'000 Human Rights Commission 364 0 0% 0 Human Settlements 3 123 2 031 1 09265% 97 Ind Complaints Directorate 1 350 818 53261% 39 Inter Relation and Coop 5 720 3 902 1 81868% 186 Justice and Constitutional Dev 134 535 62 395 72 14146% 2 971 Labour 20 355 11 066 9 28954% 527 Mineral Resources 1 704 382 1 32222% 18 National Prosecuting Authority 6 750 3 962 2 78859% 189 National Treasury 7 496 3 238 4 25843% 154 PALAMA 1 293 1 043 24981% 50 Public Enterprises 805 579 22572% 28 Public Protector 1 716 1 122 59465% 53 Public Services and Admin 3 451 3 037 41488% 145 Public Works 131 222 58 276 72 94544% 2 775 Public Works (Unknown) 365 259 10671% 12

14. Municipal Services cont. Client Amount claimed Amount Received Outstanding % Received Man Fee Rec R'000 Rural Dev and Land Affairs 18 992 16 674 2 31988% 794 SA Micro Apex Fund 27 0 0% 0 SA Police Services 448 280 391 792 56 48887% 18 657 SA Revenue Service 4 260 3 701 55987% 176 SA Social Security Agency 9 563 3 667 5 89538% 175 SITA 1 075 0 0% 0 Social Development 1 909 1 908 0100% 91 Sports and Recreation 1 071 623 44858% 30 Statistics SA 11 902 5 545 6 35747% 264 Tourism 678 413 26661% 20 Trade and Industry 609 0 0% 0 Transport 624 82 54213% 4 Water Affairs 15 535 9 234 6 30159% 440 Grand Total 1 802 710 1 349 225 453 48575% 64 249

15. PACE Recoveries Claimed Amount Amount ReceivedBalance% Recovered R’000 April 142 637 0100% May 190 855 0100% June 215 978 100% July 224 683223 5361 14799% August 213 543213 17536899% September273 397271 1872 20999% October229 756167 66362 09373% November288 531132 741155 79046% Total1 779 3801 557 772221 60888%

16. 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

17. Recoverable CA (current year) Month Amount Claimed Amount ReceivedOutstanding % Recovered R’000 April21 51215 4536 05972% May23 36815 5827 78667% June78 77668 33310 44387% July53 5712 06151 5104% August31 39919 54411 85562% September66 98454 32912 65481% October57 60637 10720 49964% November73 9641 51772 4472% December89 9850 0% 497 164213 927283 23743%

18. 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)

19. Age Analysis 30 Days60 Days90 Days> 90 Days Total 2011/12 Prev Years Total R’000 Accommodation (State Owned) 0068 363 6,77275 13530,840105 975 Accommodation (Private) 0221 54988 732176 492486 772447,666934 439 Municipal Services 251 667202 046104 61131 639589 962271,668861630 PACE 329 252155 79062 0933 724550 86015 887566 747 Recoverable: CA 89 98572 44720 499100 306283 23796 823380 060 Total 670 904651 832344 297318 9331 985 966862 8842 848 850 % 24%23%12%11%70%30%

20. DPW Capital Budget AllocationExpenditure % Exp % Exp 10/11 Projection Projected under / over Exp R'000 DPW Capital 1 443 945 769 04553%48% 1 385 681 58 264 Departmental 468 185 171 91937%71% 221 055 247 130 Accessibility (Disabled) 25 000 9 91740%57% 26 361- 1 361 Dolomite Risk Mngmnt 46 000 25 13055%6% 85 355- 39 355 Land ports of Entry (BCOCC) 310 000 212 79269%56% 417 577- 107 577 Prestige 0 00%54% 0 0 ICR 122 000 30 75825%11% 86 344 35 656 Special Projects 472 760 318 52967%0% 548 990- 76 229

21. Client Capital Budget AllocationExpenditure % Exp % Exp 10/11 Projection Projected under / over Expenditure R'000 Client Capital 2 593 245 1 339 65852%67% 2 330 758 262 487 Agriculture, Forestry and Fishing 14 857 10 73872%60% 18 165- 3 308 Arts & Culture 271 000 98 89036%34% 197 576 73 424 Correctional Services 730 828 383 94853%59% 649 546 81 281 Defence and Military Veterans 178 560 152 49585%83% 185 593- 7 033 Home Affairs 44 483 19 56444%61% 41 760 2 723 Justice 305 729 296 44797%68% 440 714- 134 984 Labour 7 455 6 81391%69% 17 488- 10 033 Rural Development 19 922 14 95075%29% 20 408- 486 SA Police Service 1 020 411 355 81335%76% 759 508 260 903