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

Financial Performance of the PMTE

Expenditure Analysis of the PMTE

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%

Accommodation Charges (State Owned)

Accommodation Charges (State Owned)

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

Accommodation Charges (Private)

Accommodation Charges (Private)

Accommodation Charges (Private)

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.

Municipal Services

Municipal Services

Municipal Services cont.

PACE Recoveries

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

Recoverable CA (current year)

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)

Age Analysis

DPW Capital Budget

Client Capital Budget