PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY

2. PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY PRESENTATION TO THE PORTFOLIO COMMITTEE ON POLICE Follow-up Meeting 28 August 2012

3. PSIRA DELEGATIONPRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY REPRESENTATIVES

4. PRESENTATION OVERVIEW • PART A – Financial context • PART B – Financial reporting • Quarter 4 of 2011/12 • PART C – Financial reporting • Quarter 1 of 2012/13 • PART D – HR Matters

5. FINANCIAL CONTEXT - REVENUE PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY • PSIRA does not receive any form of government assistance / grant • PSIRA Revenue streams are as follows: • Annual fees from Security Providers (SP’s) • Annual fees from active Security Officers payable monthly • Security providers pay R4,250.00 p.a. • Security providers pay R7.00 p.m. for each SO employed • Security officers pay R84 p.a. through salary deductions • Revenue from services rendered i.e. • Registration fees (both SO’s and SP’s) • Disbursement fees – issuance of ID cards, Certificates , • Processing of training (course) reports • Fines issued at code of conduct enquiries

6. PART BQuarter 4 of 2011/12

7. BUDGET VARIANCE REPORT PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY

8. FINANCIAL ANALYSISPRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY VARIANCE ANALYSIS • Revenue below budget by 19% (R29.3m) as a result of delayed implementation of 2011 Annual Fees • Operating expenses below budget by 12% (R18.4m) as a result of non-appointment of employees, expenditure savings and deferment of planned activities • Cost of living adjustment for 2012 was 5.5% YEAR on YEAR REVIEW • Revenue growth of 33% from R97m (2011) to R128m (2012) • Expenditure growth of 15% from R97.7m (2011) to R138.3m (2012) • However, expenditure growth slowed down from 23% in 2010/11 to 15%

9. PART CQuarter 1 of 2012/13

10. BUDGET VARIANCE REPORT PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY

11. FINANCIAL ANALYSISPRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY VARIANCE ANALYSIS • Revenue billing on budget at R97.4m, despite penalties and interest not billed • Operating expenses below target, as result of deferral of planned activities • Debt impairment is above budget by 477%, due to provisions of bad debt in light of court case • Debt impairment is due to members of SIA who are paying in terms of old annual fee rates, (on a monthly basis) • The payment by SIA is in terms of Court Interdict • Revenue exceeded expenditure by R19.9m

12. FINANCIAL ANALYSISPRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY FORECAST • Debt impairment will reduce over the course of year, from R48m to R33.7m • As a result of payments to be received on a monthly basis • Revenue is estimated to be below budget by 4%, largely ascribed to penalties and interest that have been suspended • Estimates indicate a surplus of R3.4m at year end

13. CASH COLLECTIONPRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY

14. PART DHR Matters

15. PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Remuneration of Council

16. PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Employee and Council numbers

17. PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY End