COMMUNITY SCHEMES OMBUD SERVICE RESOLUTION OF CHALLENGES PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS MEETING 5 March 2014 Director-General – T Zulu

PRESENTATION OUTLINE 1. Background 2. Resolution of challenges 2.1. Approval of the Strategic and Annual Performance Plan 2.2. Appointment of the Chief Ombud and the Chief Financial Officer 2.3. Funding of the entity 2.4. Office space

The Community Schemes Ombud Service Act (Act no 9 of 2011) [CSOS Act], was proclaimed on 11 June 2011 and provides for the establishment of the Community Schemes Ombud Service (CSOS) as a public entity. The entity has been listed as a schedule 3A public entity in terms of the Public Finance Management Act (Act No. 1 of 1999, as amended) (PFMA). The Sectional Titles Act (no. 95 of 1986) has been amended by the Sectional Titles Schemes Management Act (no 8 of 2011), as the Sectional Titles Schemes Management Act (no 8 of 2011) will now deal with the establishment of bodies corporate to control common property and the application of rules. 1. BACKGROUND

2. Resolution of challenges The presentation to the Portfolio Committee on 14 November 2013, highlighted challenges with regard to the following: The approval of the Strategic and the Annual Performance Plan for 2013/14; The appointment of the Chief Ombud and the Chief Financial Officer; The funding of the entity; and Office space. 2. RESOLUTION OF CHALLENGES

2.1. Approval of the Strategic and the Annual Performance Plan The Minister has approved the Strategic and Annual Performance Plan of the CSOS on 31 January The Board of the CSOS is therefore preparing for the operationalisation of the entity. 2. RESOLUTION OF CHALLENGES…

2.2. The appointment of the Chief Ombud and the Chief Financial Officer The Department advertised the position of the Chief Ombud and the Chief Financial Officer on behalf of the CSOS. The closing date for applications was 31 January The Board has shortlisted the candidates for the positions and is currently preparing for interviews. 2. RESOLUTION OF CHALLENGES…

2.3. Funding of the entity The Department secured R20 million in the 2013/14 financial year for the operationalisation of the CSOS through a roll-over request. The Department stands ready to transfer funds to the CSOS as soon as the Chief Financial Officer is appointed. The Department secured grant funding appropriations for the CSOS over the medium term as follows: R40 million in 2014/15, R53 million in 2015/16 and R28 million in 2016/ RESOLUTION OF CHALLENGES…

2.4. Office space The Strategic and Annual Performance Plan was not yet finally approved at the time when the CSOS requested for the procurement of office space through the Department. Temporary office has been identified at the offices of the Estate Agency Affairs Board (EAAB). The matter is currently being discussed with the Chairperson of the Board of the EAAB and the management of the entity. The CSOS will have to define and procure the permanent office space requirements of the entity through the applicable supply chain management processes during the 2014/15 financial year. 2. RESOLUTION OF CHALLENGES…

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