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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

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

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Page 1: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Presentation of the 3rd Quarter Financial Performance of the

Property Management Trading Entity (PMTE) to the Portfolio

Committee

Presented by:Cathy Motsisi

Chief Financial Officer

Page 2: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Financial Performance of the PMTE

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

Expenditure Analysis of the PMTE

Page 4: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

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%

Page 5: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Accommodation Charges (State Owned)

Page 6: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Accommodation Charges (State Owned)

Page 7: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

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

Page 8: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Accommodation Charges (Private)

Page 9: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Accommodation Charges (Private)

Page 10: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Accommodation Charges (Private)

Page 11: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

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.

Page 12: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Municipal Services

Page 13: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Municipal Services

Page 14: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Municipal Services cont.

Page 15: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

PACE Recoveries

Page 16: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

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

Page 17: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Recoverable CA (current year)

Page 18: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

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)

Page 19: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Age Analysis

Page 20: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

DPW Capital Budget

Page 21: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy

Client Capital Budget

Page 22: Presentation of the 3 rd Quarter Financial Performance of the Property Management Trading Entity (PMTE) to the Portfolio Committee Presented by: Cathy