2023/24 PPRA ANNUAL REPORT PRESENTATION TO THE
Description: 202324 PPRA ANNUAL REPORT PRESENTATION TO THE PORTFOLIO COMMITTEE OF DHS 1 1. TABLE OF CONTENTS Page Purpose 3 Executive Overview and Highlights 4 - 5 Performance Outcomes 202324 6 - 19 Financial Performance 202324 20 - 28 Audit Outcome
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slide1. 2023/24 PPRA ANNUAL REPORT PRESENTATION TO THE PORTFOLIO COMMITTEE OF DHS 1<br>
slide2. 1. TABLE OF CONTENTS Page
Purpose 3
Executive Overview and Highlights 4 - 5
Performance Outcomes 2023/24 6 - 19
Financial Performance 2023/24 20 - 28
Audit Outcome 2023/24 29 - 33
Recommendation 34 Page 2<br>
slide3. 2. PURPOSE OF THE PRESENTATION The purpose of the presentation is:
To present to the Portfolio Committee of Human Settlements the Annual Report of the PPRA Group and Authority for the 2023/24 financial year. Page 3<br>
slide4. 3. EXECUTIVE OVERVIEW AND HIGHLIGHTS Key achievements
Key Collaborations: PPRA Established significant partnerships with private and public sectors to drive innovation in the property industry. PPRA collaborated with Eskom through their asset disposal programme.
Sustainable Transformation: The Rawson Property Group initiative (TNX Project) is inspired by a commitment to real, sustainable transformation in the real estate sector. PPRA partnered with the Rawson Property Group to award franchises to previously disadvantaged individuals (PDIs). At the end of this fruitful collaboration we would have awarded 100 franchises to PDI’s
Strategic Leverage: PPRA aims to leverage external expertise and resources through these partnerships to enhance capabilities and accelerate progress toward transformation goals. Page 4<br>
slide5. 3. EXECUTIVE OVERVIEW AND HIGHLIGHTS continued… Key achievements
iv. The Research Centre is experiencing growth and is positioned to significantly impact the property sector. A key achievement is the completion of the research paper titled “The Impact of Post-Matric Curriculum on the Transformation of the South African Property Sector,” in collaboration with the National Research Foundation (NRF).
v. In partnership with the Department of Science and Innovation (DSI), the NRF is also developing a program that allows outstanding researchers and academics to work within government institutions, contributing to public policy-making. Through this initiative, a Post-Doctoral candidate from Nelson Mandela Metropolitan University has been seconded to the PPRA to conduct research on projects endorsed by the PPRA Board.
vi. Overall performance has significantly improved, with a success rate of 66,67% compared to 33% in 2022. This huge improvement demonstrates our dedication to increasing operational efficiency and effectiveness. Streamlined processes and strong performance monitoring systems are all important contributors to this achievement. We have successfully improved our performance standards and outcomes by addressing past challenges and employing data-driven solutions. Page 5<br>
slide6. Page 6 4.1 PERFORMANCE SUMMARY REPORT<br>
slide7. 4.1 PERFORMANCE SUMMARY REPORT continued… Page 7<br>
slide8. 4.2 PROGRAMME 1: FINANCE AND ADMINSTRATION (1 of 4) Page 8<br>
slide9. 4.2 PROGRAMME 1: FINANCE AND ADMINISTRATION (2 of 4) Page 9<br>
slide10. 4.2 PROGRAMME 1: FINANCE AND ADMINISTRATION (3 of 4) Page 10<br>
slide11. 4.2 PROGRAMME 1: FINANCE AND ADMINISTRATION (4 of 4) Page 11<br>
slide12. 4.3 PROGRAMME 2: LICENSING (1 of 1) Page 12<br>
slide13. 4.4 PROGRAMME 3: INSPECTION AND ENFORCEMENT (1 of 1) Page 13<br>
slide14. 4.5 PROGRAMME 4: EDUCATION, PROFESSIONALISATION, CPD (1 of 1) Page 14<br>
slide15. 4.6 PROGRAMME 5: RESEARCH CENTRE (1 of 1) Page 15<br>
slide16. 4.7 PROGRAMME 6: TRANSFORMATION (1 of 2) Page 16<br>
slide17. 4.7 PROGRAMME 6: TRANSFORMATION (2 of 2) Page 17<br>
slide18. 4.8 PROGRAMME 7: TRANSFORMATION FUND (1 of 1) Page 18<br>
slide19. 4.8 PROGRAMME 8: FIDELITY FUND (1 of 1) Page 19<br>
slide20. 5. FINANCIAL PERFORMANCE 2023/24 5.1 PPRA STATEMENT OF FINANCIAL POSITION Page 20<br>
slide21. 5. FINANCIAL PERFORMANCE 2023/24 continued… 5.2 ANALYSIS OF GROUP’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The current assets of the Group are summarised in the table below:
The Group’s current assets decreased by R10,5m from R756,8m to R746,3m due mainly to:
Decrease in other financial assets of the PPFF of R123,7m. These financial assets were in long term investments in 2022/23 and matured and were invested as short-term investments and subsequently classified as cash and cash equivalents.
Receivables from exchange transactions decreased by R18,2m due to allowances for credit losses on long outstanding debtors relating to FFC contributions and income from examinations
Receivables from non-exchange transactions increased from R45,7m to R72,4mm due to penalties and fines raised in both the PPRA and PPFF
Cash and cash equivalents increased from R555,1m to R659,8m mainly due to increase in cash reserves brought about by PPFF investments held in short-term instruments. Page 21<br>
slide22. 5.2 ANALYSIS OF GROUP’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The non-current assets of the Group are summarised in the table below:
The Group’s non-current assets decreased from R265m to R140m mainly due :
Reduction in value of PPE was brought about mainly by depreciation and minor acquisition of IT equipment and furniture.
Increase in intangible assets was mainly due to acquisition of software to improve IT environment. Page 22 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide23. 5.2 ANALYSIS OF GROUP’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The Group’s total liabilities decreased from R169,6m to R163,9m mainly due to:
Decrease of Deferred revenue (disclosed as current and non-current liability) from R142,2m to R127,5m as a result of PPRA issuing 3-year FFCs in line with new Property Practitioners Act.
Increase in Agent interest received in advance for the PPFF from R4,6m to R17,5m
Increase of R977k in post-retirement medical aid benefit obligations (current & non-current)
The Groups net assets decreased by deficit of R6,9m from R728,2m to R721,3m Page 23 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide24. 5.3 ANALYSIS OF PPRA’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The current assets of the PPRA are as follows:
The PPRA’s current assets decreased by R27,3m from R107,6m to R80,2m mainly due :
An increase of R4.6m in inter-company loans and receivables due to monies owed by PSTF to the PPRA
Receivables from exchange transactions decreased by R18,2 due to allowances for credit losses on long outstanding debtors relating to FFC contributions and income from examinations
Receivables from non-exchange increased from R5m to R26,2m due to penalties and fines raised in the PPRA
Decrease in Cash and cash equivalents from R67,6m to R32,8m mainly due to utilisation of funds invested in call account for operational requirements of PPRA.
The PPRA’s non-current assets decreased from R141m to R138,9m mainly due to reduction in value of assets brought about mainly by depreciation Page 24 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide25. 5.3 ANALYSIS OF PPRA’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The current and non-current liabilities of the PPRA are summarised in the table below:
The PPRA’s total liabilities decreased from R165m to R148m mainly due to decrease in :
Deferred revenue (disclosed as current and non-current liability ) decreased by R21m from R142m to R121m as a result recognising deferred revenue as revenue from exchange transactions
Decrease of R555k in post-retirement medical aid benefit obligations (current and non-current)
The PPRA’s net assets decreased from R83,6m to R71m due to deficit incurred of R12,5m Page 25 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide26. 5.4 PPRA STATEMENT OF FINANCIAL PERFORMANCE Page 26 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide27. 5.6 PPRA STATEMENT OF COMPARISON OF BUDGET VS ACTUAL AMOUNTS PERFORMANCE 2023/24 Page 27 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide28. 5.8 CASHFLOW STATEMENT Page 28 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide29. 6. AUDIT OUTCOMES FOR THE PAST THREE FINANCIAL YEARS The audit outcome for PPRA, PPFF and PSTF are as follows:
The summarised key audit outcome for PPRA have been presented on pages 30 – 33. Page 29<br>
slide30. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 30<br>
slide31. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 31<br>
slide32. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 32<br>
slide33. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 33<br>
slide34. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 34<br>
slide35. 7. RECOMMENDATION Recommendation:
The Portfolio Committee for Human Settlements to approve the presentation on the Annual Report of the PPRA and its Group for the 2023/24 financial year.
Thank you Page 35<br>
slide2. 1. TABLE OF CONTENTS Page
Purpose 3
Executive Overview and Highlights 4 - 5
Performance Outcomes 2023/24 6 - 19
Financial Performance 2023/24 20 - 28
Audit Outcome 2023/24 29 - 33
Recommendation 34 Page 2<br>
slide3. 2. PURPOSE OF THE PRESENTATION The purpose of the presentation is:
To present to the Portfolio Committee of Human Settlements the Annual Report of the PPRA Group and Authority for the 2023/24 financial year. Page 3<br>
slide4. 3. EXECUTIVE OVERVIEW AND HIGHLIGHTS Key achievements
Key Collaborations: PPRA Established significant partnerships with private and public sectors to drive innovation in the property industry. PPRA collaborated with Eskom through their asset disposal programme.
Sustainable Transformation: The Rawson Property Group initiative (TNX Project) is inspired by a commitment to real, sustainable transformation in the real estate sector. PPRA partnered with the Rawson Property Group to award franchises to previously disadvantaged individuals (PDIs). At the end of this fruitful collaboration we would have awarded 100 franchises to PDI’s
Strategic Leverage: PPRA aims to leverage external expertise and resources through these partnerships to enhance capabilities and accelerate progress toward transformation goals. Page 4<br>
slide5. 3. EXECUTIVE OVERVIEW AND HIGHLIGHTS continued… Key achievements
iv. The Research Centre is experiencing growth and is positioned to significantly impact the property sector. A key achievement is the completion of the research paper titled “The Impact of Post-Matric Curriculum on the Transformation of the South African Property Sector,” in collaboration with the National Research Foundation (NRF).
v. In partnership with the Department of Science and Innovation (DSI), the NRF is also developing a program that allows outstanding researchers and academics to work within government institutions, contributing to public policy-making. Through this initiative, a Post-Doctoral candidate from Nelson Mandela Metropolitan University has been seconded to the PPRA to conduct research on projects endorsed by the PPRA Board.
vi. Overall performance has significantly improved, with a success rate of 66,67% compared to 33% in 2022. This huge improvement demonstrates our dedication to increasing operational efficiency and effectiveness. Streamlined processes and strong performance monitoring systems are all important contributors to this achievement. We have successfully improved our performance standards and outcomes by addressing past challenges and employing data-driven solutions. Page 5<br>
slide6. Page 6 4.1 PERFORMANCE SUMMARY REPORT<br>
slide7. 4.1 PERFORMANCE SUMMARY REPORT continued… Page 7<br>
slide8. 4.2 PROGRAMME 1: FINANCE AND ADMINSTRATION (1 of 4) Page 8<br>
slide9. 4.2 PROGRAMME 1: FINANCE AND ADMINISTRATION (2 of 4) Page 9<br>
slide10. 4.2 PROGRAMME 1: FINANCE AND ADMINISTRATION (3 of 4) Page 10<br>
slide11. 4.2 PROGRAMME 1: FINANCE AND ADMINISTRATION (4 of 4) Page 11<br>
slide12. 4.3 PROGRAMME 2: LICENSING (1 of 1) Page 12<br>
slide13. 4.4 PROGRAMME 3: INSPECTION AND ENFORCEMENT (1 of 1) Page 13<br>
slide14. 4.5 PROGRAMME 4: EDUCATION, PROFESSIONALISATION, CPD (1 of 1) Page 14<br>
slide15. 4.6 PROGRAMME 5: RESEARCH CENTRE (1 of 1) Page 15<br>
slide16. 4.7 PROGRAMME 6: TRANSFORMATION (1 of 2) Page 16<br>
slide17. 4.7 PROGRAMME 6: TRANSFORMATION (2 of 2) Page 17<br>
slide18. 4.8 PROGRAMME 7: TRANSFORMATION FUND (1 of 1) Page 18<br>
slide19. 4.8 PROGRAMME 8: FIDELITY FUND (1 of 1) Page 19<br>
slide20. 5. FINANCIAL PERFORMANCE 2023/24 5.1 PPRA STATEMENT OF FINANCIAL POSITION Page 20<br>
slide21. 5. FINANCIAL PERFORMANCE 2023/24 continued… 5.2 ANALYSIS OF GROUP’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The current assets of the Group are summarised in the table below:
The Group’s current assets decreased by R10,5m from R756,8m to R746,3m due mainly to:
Decrease in other financial assets of the PPFF of R123,7m. These financial assets were in long term investments in 2022/23 and matured and were invested as short-term investments and subsequently classified as cash and cash equivalents.
Receivables from exchange transactions decreased by R18,2m due to allowances for credit losses on long outstanding debtors relating to FFC contributions and income from examinations
Receivables from non-exchange transactions increased from R45,7m to R72,4mm due to penalties and fines raised in both the PPRA and PPFF
Cash and cash equivalents increased from R555,1m to R659,8m mainly due to increase in cash reserves brought about by PPFF investments held in short-term instruments. Page 21<br>
slide22. 5.2 ANALYSIS OF GROUP’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The non-current assets of the Group are summarised in the table below:
The Group’s non-current assets decreased from R265m to R140m mainly due :
Reduction in value of PPE was brought about mainly by depreciation and minor acquisition of IT equipment and furniture.
Increase in intangible assets was mainly due to acquisition of software to improve IT environment. Page 22 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide23. 5.2 ANALYSIS OF GROUP’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The Group’s total liabilities decreased from R169,6m to R163,9m mainly due to:
Decrease of Deferred revenue (disclosed as current and non-current liability) from R142,2m to R127,5m as a result of PPRA issuing 3-year FFCs in line with new Property Practitioners Act.
Increase in Agent interest received in advance for the PPFF from R4,6m to R17,5m
Increase of R977k in post-retirement medical aid benefit obligations (current & non-current)
The Groups net assets decreased by deficit of R6,9m from R728,2m to R721,3m Page 23 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide24. 5.3 ANALYSIS OF PPRA’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The current assets of the PPRA are as follows:
The PPRA’s current assets decreased by R27,3m from R107,6m to R80,2m mainly due :
An increase of R4.6m in inter-company loans and receivables due to monies owed by PSTF to the PPRA
Receivables from exchange transactions decreased by R18,2 due to allowances for credit losses on long outstanding debtors relating to FFC contributions and income from examinations
Receivables from non-exchange increased from R5m to R26,2m due to penalties and fines raised in the PPRA
Decrease in Cash and cash equivalents from R67,6m to R32,8m mainly due to utilisation of funds invested in call account for operational requirements of PPRA.
The PPRA’s non-current assets decreased from R141m to R138,9m mainly due to reduction in value of assets brought about mainly by depreciation Page 24 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide25. 5.3 ANALYSIS OF PPRA’S STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024
The current and non-current liabilities of the PPRA are summarised in the table below:
The PPRA’s total liabilities decreased from R165m to R148m mainly due to decrease in :
Deferred revenue (disclosed as current and non-current liability ) decreased by R21m from R142m to R121m as a result recognising deferred revenue as revenue from exchange transactions
Decrease of R555k in post-retirement medical aid benefit obligations (current and non-current)
The PPRA’s net assets decreased from R83,6m to R71m due to deficit incurred of R12,5m Page 25 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide26. 5.4 PPRA STATEMENT OF FINANCIAL PERFORMANCE Page 26 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide27. 5.6 PPRA STATEMENT OF COMPARISON OF BUDGET VS ACTUAL AMOUNTS PERFORMANCE 2023/24 Page 27 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide28. 5.8 CASHFLOW STATEMENT Page 28 5. FINANCIAL PERFORMANCE 2023/24 continued…<br>
slide29. 6. AUDIT OUTCOMES FOR THE PAST THREE FINANCIAL YEARS The audit outcome for PPRA, PPFF and PSTF are as follows:
The summarised key audit outcome for PPRA have been presented on pages 30 – 33. Page 29<br>
slide30. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 30<br>
slide31. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 31<br>
slide32. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 32<br>
slide33. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 33<br>
slide34. 6. AUDIT OUTCOMES : KEY AUDIT FINDINGS AND ACTION PLANS – PPRA Page 34<br>
slide35. 7. RECOMMENDATION Recommendation:
The Portfolio Committee for Human Settlements to approve the presentation on the Annual Report of the PPRA and its Group for the 2023/24 financial year.
Thank you Page 35<br>