1. QUARTER 4 PERFORMANCE AND FINANCE REPORT
Manabela Chauke, Director, PSiRA
15 May 2018

2. DELEGATION COUNCIL MEMBERS:
Mr. Nhlanhla Ngubane : Acting Chairperson of Council
MANAGEMENT TEAM
Mr. Manabela(Sam) Chauke : Director
Mrs. Mmatlou Sebogodi : Deputy Director Finance and Admin

3. PRESENTATION OVERVIEW
PART A: KEY HIGHLIGHTS
PART B: 3rd QUARTER PREDETERMINED OBJECTIVES
PART B: 3rd QUARTER FINANCIAL PERFORMANCE
PART B: 4th QUARTER PREDETERMINED OBJECTIVES
PART C: 4th QUARTER FINANCIAL PERFORMANCE

4. KEY HIGHLIGHTS

5. MATTERS OF PROGRESS
Audit of firearms in the Private Security Industry.
Regulations on issue, use and possession of firearms.
Review of the funding model and introduction of the Private Security Levies Act.

6. PREDETERMINED OBJECTIVES
QUARTER 3
PREDETERMINED OBJECTIVES

7. QUARTER 3: STATUS PERFORMANCE INFORMATION

8. FINANCIAL PERFORMANCE
QUARTER 3
FINANCIAL PERFORMANCE

9. QUARTER 3 FINANCIAL PERFORMANCE
Performance information: 77%
Registration fees are 27% above budget;
Course Reports income is 31% above budget;
Fines and penalties are 115% above budget;
Annual Fees are 1% below budget; and
Sale of Goods 48% below budget.
Expenditure is 2% above budget
Travel and accommodation 32% above budget;
Seminars, conferences and venue hire 64% above budget;
Fingerprints 20% above budget; and
Legal fees 29% above budget.
Surplus as at 31 December was R21million

10. QUARTER 3 FINANCIAL PERFORMANCE Cont…
Cash Flow Analysis
Cash flow collection target on Annual Fees 80%
Cash Flow as a percentage of Billing 67%;
Cash Flow as a percentage of Budget 66%;
Billing as a Percentage of Budget 99%.

11. PREDETERMINED OBJECTIVES
QUARTER 4
PREDETERMINED OBJECTIVES

12. PERFORMANCE OVERVIEW AS AT 31 MARCH 2018

13. FINANCIAL OVERVIEW AS AT 31 MARCH 2018
Total Revenue is 8% above budget
Registration fees are 30% above budget;
Course Reports income is 32% above budget;
Fines and penalties are 148% above budget;
Annual Fees are 1% below budget; and
Sale of Goods 19% below budget.
Expenditure is 10% above budget
Travel and accommodation 24% above budget;
Seminars, conferences and venue hire 17% above budget;
Fingerprints 22% above budget; and
Legal fees 33% above budget.
Deficit for the year is R4 million

14. PREDETERMINED OBJECTIVES
QUARTER 4
PREDETERMINED OBJECTIVES

15. PROGRAMME 1 FINANCE AND ADMINISTRATION
Tittle Goes here…

16. PROGRAMME 1 - OVERVIEW Purpose :
Provide leadership, strategic management and administrative support to the Authority.
Measurable Objectives
The programme aims to ensure effective leadership, management and administrative support to the Authority through continuous refinement of organisational strategy and structure in line with appropriate legislation and best practices.
There are three sub- programmes:
Sub-Programme: Finance and Administration
Sub-Programme: Business Information Technology
Sub-Programme: Human Capital

17. PROGRAMME 1: ADMINISTRATION
SUB-PROGRAMME: FINANCE AND ADMINISTRATION
Strategic Goal 3 : Ensure good governance across the organisation
Strategic Objective : Effective financial management
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(a)
Unqualified audit opinion with no significant audit findings.
Unqualified opinion with no significant audit findings.
Review & implementation of controls done for Q1 & Q4.
Internal & External audit action plan developed and implemented.
Review of internal controls by Internal Auditors conducted.
Review and monitor implementation of internal controls.
Review of implementation and effectiveness of internal action plan to address AGSA findings.
Waiting for the Audit to be completed.

18. PROGRAMME 1: ADMINISTRATION CONT..
SUB-PROGRAMME: FINANCE AND ADMINISTRATION
Strategic Goal 3 : Ensure good governance across the organisation
Strategic Objective : Effective financial management
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(b)
% of revenue collected.
80% revenue collected.
72%
revenue
Collected.
90% of the debt is for Small Security Businesses with 0 to 5 security officers employed and are the ones struggling to get contracts which is affecting revenue collection.
Provision for bad debts has also increased by R18,8 million with a total of R63 million. Most of this debt is however a historic debt with over 90% being owed more than 90 days.

19. PROGRAMME 1: ADMINISTRATION
SUB-PROGRAMME: BUSINESS INFORMATION SYSTEMS
Strategic Goal 3 : Ensure good governance across the organisation
Strategic Objective : Efficient and effective processes and systems
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(a)
Critical IT infrastructure restored within the set timeline.
Average of 24 hours.
Average of 7:09:39.
Average of 14:10:17
Implementation of IT Business Continuity side.

20. PROGRAMME 1: ADMINISTRATION
SUB-PROGRAMME 3: HUMAN CAPITAL
Strategic Goal 3 : Ensure good governance across the organisation
Strategic Objective : To improve the performance of the organisation
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(a)
% of implementation of the Performance Management System (PMS).
100%
Quarterly assessment done.
26 Training done.
A detail key deliverables of Performance Management System (PMS) to support the targets are unpacked for Audit purpose.

21. PROGRAMME 2 LAW ENFORCEMENT
Tittle Goes here…

22. PROGRAMME 2 - OVERVIEW Purpose :
Ensure that there are effective regulations in the security industry and enforcement of law and compliance to the regulations.
Measurable Objectives
The programme aims to ensure that Security Service Providers comply with the regulations by doing regular inspections for both security officers and security businesses.
Ensure that those who are not complying with the regulations are charged and prosecuted.
There are three sub- programmes:
Sub-Programmes: Enforcement
Sub-Programmes: Compliance
Sub-Programmes: Legal Services and Prosecution

23. Key Performance Indicators (KPI’s)
PROGRAMME 2: LAW ENFORCEMENT
PROGRAMME 2: LAW ENFORCEMENT
Strategic Goal 1 : Strategic Goal 1 : To ensure excellent service delivery (effective regulation) in the security industry
Strategic Objective : Increased monitoring and investigation of security service providers to enforce compliance with applicable legislation
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(a)
Number of security businesses inspected to enforce compliance with applicable legislation.
5 400
6 253
1 215
1 735
+520
Additional resources (5 inspectors) in Compliance Department.
(b)
Number of security officers inspected to enforce compliance with applicable legislation.
31 000
34 439
6 980
7 912
+932

24. Key Performance Indicators (KPI’s)
PROGRAMME 2: LAW ENFORCEMENT
PROGRAMME 2: LAW ENFORCEMENT
Strategic Goal 1 : Strategic Goal 1 : To ensure excellent service delivery (effective regulation) in the security industry
Strategic Objective : Increased monitoring and investigation of security service providers to enforce compliance with applicable legislation
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(c)
% of investigations finalized against non-compliant SSP’s.
83%
87%
+4%
Additional resources (staff) within Enforcement Department.
(d)
% of criminal cases opened against non-compliant SSP’s.
93%
96%
+3%

25. Key Performance Indicators (KPI’s)
PROGRAMME 2: LAW ENFORCEMENT
PROGRAMME 2: LAW ENFORCEMENT
Strategic Goal 1 : Strategic Goal 1 : To ensure excellent service delivery (effective regulation) in the security industry
Strategic Objective : Increased monitoring and investigation of security service providers to enforce compliance with applicable legislation
Key Performance Indicators (KPI’s)
Annual targets
2016/17
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(e)
Number of security businesses licensed to possess firearms inspected.
1 200
1 324
270
354
+84
Introduction of new target for assistant inspectors and additional resources (5 inspectors) in Compliance Department.
(f)
% of cases of non-compliant SSP’s prosecuted per year.
90%
N/A

26. Key Performance Indicators (KPI’s)
PROGRAMME 2: LAW ENFORCEMENT
PROGRAMME 2: LAW ENFORCEMENT
Strategic Goal 1 : Strategic Goal 1 : To ensure excellent service delivery (effective regulation) in the security industry
Strategic Objective : Increased monitoring and investigation of security service providers to enforce compliance with applicable legislation
Key Performance Indicators (KPI’s)
Annual targets
2016/17
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(g)
Number of new draft regulations compiled.
2 Draft regulations compiled.
Submit draft regulations and obtain Director’s approval.
2 Draft regulations compiled and submitted to the Office of the Minister.
N/A

27. COMMUNICATIONS, REGISTRATION & TRAINING
PROGRAMME 3
COMMUNICATIONS, REGISTRATION & TRAINING
Tittle Goes here…

28. PROGRAMME 3 - OVERVIEW Purpose :
Provide effective stakeholder engagement.
Ensure that training standards are adhered to and the registration process is done in accordance with the PSiR Act.
Measurable Objectives
Ensure effective and meaningful stakeholder communication. Ensure that all training institutions are aligned to the required standard of training.
Ensure that the registration process is effective and authentic.
Continuous research to support core business initiatives and policy development.
There are four sub-programmes within this programme:
Sub-Programme: Communications and Stakeholder Management
Sub-Programme: Industry Registration (CRM)
Sub-Programme: Industry Training
Sub-Programme: Industry Research and Development

29. PROGRAMME 3: COMMUNICATIONS, CRM & TRAINING
SUB PROGRAMME 1: COMMUNICATIONS AND STAKEHOLDER MANAGEMENT
Strategic Goal 2 : Stakeholder and Customer
Relations Management
Strategic Objective : Increased awareness on the functions and role of PSiRA and its stakeholders within the security industry
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(a)
Number of public awareness programmes on PSiRA’s role and functions.
140 Public Awareness Programmes
193 Public Awareness Programmes.
35 Public Awareness Programmes.
10 Public
Awareness Programmes.
The resources were redirected because the annual target was already reached.

30. PROGRAMME 3: COMMUNICATIONS, CRM & TRAINING
SUB PROGRAMME 2: REGISTRATION
Strategic Goal 2 : Stakeholder and Customer
Relations Management
Strategic Objective : Improve the integrity and the turnaround time of registration
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(a)
Average turnaround time of applications for registration meeting all the requirements for security businesses (working days).
Average of 15 days.
Average of 17 days.
-2 days Yearly target was not achieved **
Average turnaround time of applications for registration meeting all the requirements for security officers (working days).
Average of 11 days.
Average of 10 days
+5 days
Registration process redefined.

31. PROGRAMME 3: COMMUNICATIONS, CRM & TRAINING
SUB PROGRAMME 2: REGISTRATION
Strategic Goal 2 : Stakeholder and Customer
Relations Management
Strategic Objective : Improve the integrity and the turnaround time of registration
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(b)
% of new registration certificates rolled out (on active Security officers) .
60%
84%
30%
142%
+112%
Communique was issued to enforce compliance in relation to renewal of certificate.
% of new registration certificates rolled out (on active Security Businesses).
205%
10%
Persistent renewal reminders to SSPs
Renewal requirements were revised.

32. PROGRAMME 3: COMMUNICATIONS, CRM & TRAINING
SUB PROGRAMME 3: INDUSTRY TRAINING
Strategic Goal 2 : Stakeholder and Customer
Relations Management
Strategic Objective : Promote compliance with minimum professional training standards by the SSPs
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(a)
Number of capacity building activities for SSP training institutions.
12 Capacity building activities.
2 Capacity building activities.
2 Capacity building workshops.
N/A

33. Key Performance Indicators (KPI’s)
PROGRAMME 3: COMMUNICATIONS, CRM & TRAINING
SUB PROGRAMME 3: INDUSTRY TRAINING
Strategic Goal 2 : Stakeholder and Customer Relations Management
Strategic Objective : Promote compliance with minimum professional training standards by the SSPs
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(b)
% of training security service providers currently registered with PSiRA accredited for NQF qualifications. 
50% of currently registered training SSP accredited.
21% of currently registered.
20% training security service providers.
16%
of training security service providers.
-4%
Reluctance by training service providers to be NQF-accredited as a result of the current non-binding legislation.

34. Key Performance Indicators (KPI’s)
PROGRAMME 3: COMMUNICATIONS, CRM & TRAINING
SUB PROGRAMME 4: RESEARCH
Strategic Goal 4 : Private Security Industry Stewardship through Research and Development
Strategic Objective : Research conducted to influence policy direction for PSiRA and the private security industry
Key Performance Indicators (KPI’s)
Annual targets
2017/18
Year to date
QUARTELY TARGETS
Quarter 4 Targets
Quarter 4 Actual
Performance Variance
(a)
Number of completed research topics per year.
4 Research Topics
2 Research topics completed.
Number of completed surveys per year.
4 Surveys
1 Survey
Number of policy documents completed.
4 policy documents completed.
5 policy documents completed.
Approved policy in place.
5 policy documents completed
Policies for Close Protection and Special Events informed by research carried out in 2016/2017 were approved.
(b)
Number of partnerships established.
1 partnership established.
Formalise the partnership with the identified learning institution.
1 Partnership concluded with UCT in 2016/17 and an addendum was concluded, done for the partnership to be utilised in the 2017/18 financial year.

35. FINANCIAL PERFORMANCE
QUARTER 4
FINANCIAL PERFORMANCE

36. REVENUE AND EXPENDITURE GROWTH

37. FINANCIAL PERFORMANCE
Details
YTD MARCH 2018
ACTUAL
BUDGET
Variance
Revenue
R'000 %
Annual fees
-1%
Registration fees
34 857
26 752
30%
Course reports
38 136
29 000
32%
Sale of goods
18 589
23 056
-19%
Interest Received
2 100
4 300
-51%
Fines
14 888
6 000
148%
Other
3 425
3 324 3%
Total Revenue 8%
Expenditure
Staff costs
-3%
Office and machine rentals
21 977
21 360
Provision for bad debts
18 858 -
100%
Other operating expenses
73 312
67 615
Total Expenditure
10%
Deficit
-3 761

38. FINANCIAL OVERVIEW Revenue
The actual revenue is 8% above budget, which equates to the variance of R17.8 million, however the expenditure was more than the revenue hence the deficit of R4 million. The positive variance under the Registration, Course Reports, Fines and Penalties assisted the Authority to reduce the deficit to R4 million.
At 8% (R218 mil in 2017) there is a visible (R23 mil) increase in the revenue compared to prior financial year.
The biggest revenue source (Annual Fees) had a negative variance of R1.7 million. The budget was based on the number of Security Officers employed, however it was discovered that some of the Security Officers are employed by more than 2 Security Business.

39. FINANCIAL OVERVIEW: Expenditure
The total expenditure to date amounts to R244 million and the main expenditure variances are from the following items.
Staff Cost 3% below budget
The provision for leave pay and the leave policy was amended to ensure alignment with the budget.
Postage and courier 18% below budget
This is mainly due to cost savings in the overnight courier services.
Bank Charges 93% above budget
An increase in cash deposits due to renewal of certificates.

40. FINANCIAL OVERVIEW: Expenditure cont.….
Travel and accommodation 24% above budget
Seminars, conferences and venue hire 17% above budget
Consultancy 5% above budget
Increased number of consultation sessions and travelling in respect of transformation.
Fingerprints 22% above budget
This is due to the increase in newly registered Security Officers which was evident in the increase in Registration Fees by 30%.
Audit Fees 18% above budget
Interim Audit covering 9 months of the financial year was conducted in Quarter 4.

41. FINANCIAL POSITION Details Mar-18 Mar-17 CHANGE Assets R'000
Non-Current Assets
20 985
21 547
-562
Current Assets
58 455
63 648
-5 193
Total Assets
79 440
85 195
-5 755
Equity and Liabilities
Equity
10 927
14 639
-3 712
Non-Current Liabilities
4 059
2 125
1 934
Current Liabilities
64 454
68 431
-3 977
Total Equity and Liabilities

42. RATIO ANALYSIS Details Mar-18 Mar-17 Change Solvency Ratios Debt Ratio
Solvency Ratios
Debt Ratio
86%
83% 3%
Equity Ratio
14%
17%
-3%
Liquidity Ratios
Working Capital Ratio (Current Ratio)
0.91
0.93
-0.02
Quick Asset Ratio
0.90
0.92
Debt Collection Days (Before Provision)
106 Days
130 Days
-24 Days
Debt Collection Days (After Provision)
77 Days
57 Days
20 Days
Creditors Payment Period
3 Days
21 Days
14 Days
Staff Cost as a % of Expenditure
58%
53% 5%

43. FINANCIAL OVERVIEW RATIOS Debt Ratio
The debt ratio indicates how the entity's funds its operations and its ability to pay off its liabilities. The Authority's liabilities amounts to 86% of total assets: - this means that the 86% of the Authority’s operations are funded through debt and the entity will be able to pay off its liabilities as they become due.
2. Equity Ratio
PSiRA ratio is 14%. This means 14% of the Authority’s operations is funded through equity which is mainly accumulated profits from prior financial year.
3. Working Capital Ratio
The entity ratio is 0.91% which indicates that PSiRA is unable to pay off the total current liabilities using total current assets. This means that for every R1 of current liabilities there is R0.91 of current assets to pay it off.

44. FINANCIAL OVERVIEW Debt Collection Days
RATIOS
Debt Collection Days
The entity currently takes 106 days to collect debts, however debtors collection strategy is being deployed to enhance collection.
5. Staff Costs Ratio
The ratio indicates that staff costs are 58% compared to total expenditure. As PSiRA is a service delivery organization the authority aims to capacitate its core business (Law enforcement) to improve inspector/security ratio of 1: 120.

45. Conclusion
The current Q4 performance against pre-determined objectives is at 77%. A higher annual performance of 82% is however anticipated.
Management with the Council is confident that the entity will achieve an unqualified audit opinion. PSiRA has implemented and intensified its internal controls, to improve the control environment.
The entity is also in the process of addressing its financial sustainability by reviewing its current funding model.

46. Thank you