2. PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY PRESENTATION TO THE PORTFOLIO COMMITTEE ON POLICE Follow-up Meeting 28 August 2012 2

3. 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

4. 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

5. 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 R4,250.00 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

6. PART B Quarter 4 of 2011/12

7. BUDGET VARIANCE REPORT PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY 7 Actual 2012 Budget 2012Variance% Revenue 98 227 752130 847 364-32 619 612-25% Other income30 301 28927 000 0003 301 28912% Total Revenue128 529 041157 847 364-29 318 323-19% Operating expenses-52 902 201-75 034 28722 132 08629% Employee related costs-61 377 994-72 956 62111 578 62716% Debt impairment-24 065 517-8 804 761-15 260 756-173% Total Operating expenses-138 345 711-156 795 66918 449 95812% Operating surplus-9 816 6711 051 695-10 868 3651033% Investment revenue537 461750 000-212 539-28% Finance costs-1 44001 440 Surplus for the quarter-9 280 6501 801 69511 082 345-615%

8. 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

9. PART C Quarter 1 of 2012/13

10. BUDGET VARIANCE REPORT PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY 10 Q1 2012-13 Q1 BudgetVariance% Revenue 90 256 42690 233 73022 6960.03% Other income7 203 6107 442 857-239 247-3% Total Revenue97 460 03697 676 587-216 5510% Operating expenses-14 102 147-22 495 8738 393 72637% Employee related costs-15 498 616-17 554 7792 056 16312% Debt impairment-48 004 073-8 324 936-39 679 137-477% Total Operating expenses-77 604 836-48 375 588-29 229 248-60% Operating surplus19 855 20049 300 999-29 445 79960% Investment revenue102 505118 005-15 500-13% Finance costs-2290229 Surplus for the period19 957 47649 419 00429 461 528-60%

11. 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

12. 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

13. CASH COLLECTION PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY 13

14. PART D HR Matters

15. PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Remuneration of Council 15 2010 20112012 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

16. PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Employee and Council numbers 16 As at31 March 2012 30 June 2012 Staff Movement Council members330 Staff Members214210-4

17. PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY End 17