Annual Report 2014/15

Transcription

1 Annual Report Presentation to Portfolio Committee 16 October 2015 Tittle Goes here 1

2 DELEGATION COUNCIL MEMBERS: Prof. Fikile NM Mazibuko : Chairperson Mr Joy DCM Rathebe : Deputy Chairperson Mr Benjamin Ntuli : Council Member Adv. Nontokozo Mthembu : Council Member Maj-Gen. Cynthia Philison : Council Member MANAGEMENT TEAM Mr Manabela(Sam) Chauke : Director Adv. Philani Mthethwa : Deputy Director Law Enforcement Ms Mpho Mofikoe : Deputy Director Communication and Training Mr Raymond Kevan : Deputy Director Finance and Administration Ms Zanele Mthembu : Corporate Secretary Dr Sabelo Gumedze : Senior Manager Research and Development 2

3 OVERVIEW Introduction of the delegation by the Chairperson of Council Overview by the Director Some key highlights for the year Progress on previous matters raised by the Portfolio Committee Operational report per programme Organisational performance Governance and financial results 3

4 OVERVIEW Presented by: Director (CEO) Tittle Goes here 4

5 SOME KEY HIGHLIGHTS Areas of improvement 1. Achievement against strategic objectives 2. Financial Performance 3. Current Financial Performance Outcomes - 83% planned targets were achieved - Unqualified Audit opinion achieved - Marginal increase on Gross Revenue - Course reports increase by 24.9% - Employee costs were contained at 6.4% - Bad debts provision dropped by 68.4% - Marginal decrease on liquidity ratio due to provision for refunds - Over 60% of new fees collected - Over R75 million of annual fees collected - Current cash reserve R70 million - Current ratio 1.3:1 - Over R20 million above budget - Revenue R10 million above budget - Expenditure R10 million under budget 5

6 SOME KEY HIGHLIGHTS Areas of improvement Outcomes 4. Service Delivery - Marginal improvement on compliance inspections % of targeted new certificates rolled out - Rolled out service delivery to remote areas 5. Stakeholder Engagements - Consumer education initiatives - MoU between PSiRA and SASSETA to expedite the development of qualifications and joint accreditation - Launched National Training Compliance Forum - Introduced capacity building workshops to strengthen industry training compliance 6. Research and Development - Launch of the Monograph - Research of Taxi Violence in KZN 6

7 LAST BRIEFING 24 APRIL 2015 Matters Raised 1. Appointment of CFO 2. Governance issues 3. Vetting of Senior Managers Progress on action taken - Council: CFO to start on 01 November Terms of reference approved by Council - Procurement process on the development of new governance framework underway - Vetting still in progress - Awaiting SSA 4. Corporate head office in Centurion - Lease to be renewed for the next three years - Feasibility study to commence next financial year - National Treasury on board 5. Disposal of previous head office in Arcadia (Pretoria) - Way forward to be guided by the outcome of the feasibility study - Final decision on the way forward to be determined by the Executive Authority 7

8 LAST BRIEFING 24 APRIL 2015 Matters Raised 6. Refunds of payments made on excess fees Progress on action taken - Agreement with the industry to refund excess fees - R81 million provided for over three years 2013 R32m 2014 R28m 2015 R21m 7. Expansion of private security to poor areas - The Authority to liaise with Civilian Secretariat on conducting research to provide policy direction on this aspect 8. New fees structures - New fees structure effective New categories created according to SCA arguments by industry Large business > 5000 employees = R Medium business < 5000 employees = R Emerging business < 500 employees = R Small business < 100 employees = R7650 8

9 LAW ENFORCEMENT Tittle Goes here 9

10 COMPLIANCE INSPECTIONS CONDUCTED COMPLIANCE INSPECTIONS CONDUCTED AT SECURITY SERVICE PROVIDERS Total Inspections Conducted Security Business Inspections Security Officer Inspections /14 10

11 PROVINCIAL BREAKDOWN OF INSPECTIONS CONDUCTED /

12 INSPECTIONS ACCORDING TO SECURITY BUSINESS SIZE Small Businesses Medium Businesses Large Businesses /14 12

13 ENFORCEMENT INVESTIGATIONS Total Investigations Security Business Investigations Security Officer Investigations /14 13

14 CRIMINAL INVESTIGATIONS/CASES Criminal Investigations Reported Finalized Pending /14 14

15 DOCKETS ACCORDING TO SECURITY BUSINESS SIZE Total Improper Conduct Dockets Small Businesses Medium Business Large Businesses /14 15

16 COMPLIANCE ANALYSIS SECURITY BUSINESS Total Inspections/Investigations Deploying Untrained Security Officers Failure to Report Intakes / Dismissals Failure to pay Minimum Wages 2533 Deploying Unregistered Security Officers Failure to Pay Annual Fees Regulation 10 Documents Failure to comply with Provident Fund

17 COMPLIANCE ANALYSIS SECURITY OFFICER Total Inspections/Investigations Untrained Security Officers Non Compliance with Uniform Unregistered Security Officers Non Compliance with PSIRA ID Cards Not Linked to a Business 17

18 COMPLIANCE ANALYSIS FIREARMS Businesses using Firearms Number of Businesses Allowing Security Officers to use own Firearms Security Officers carrying Firearms Number of Security Officers using personal Firearms Not Competent or could not submit Competency Certificates

19 FIREARM ENQUIRIES PROCESSED Application Received from CFR Application not Recommended Application Recommended /14 19

20 REGULATORY SUB-COMMITTEE Security Business Total Withdrawal (Annual Fees) 883 Voluntary Withdrawal 78 Withdrawals at Code of Conduct Enquiries 14 Upliftment of Suspensions 75 Withdrawals (Reg. 5 : Infrastructure & Capacity) 6 Registrations Suspended (Annual fees) 953 Security Officers Total Withdrawal 89 Withdrawals at Code of Conduct Enquiries 3 Registrations Suspended 95 20

21 REGISTRATIONS (CRM) Tittle Goes here 21

22 SECURITY OFFICERS REGISTRATION (EMPLOYED) Employed Security Officers (SOs) Total No. Of SOs (Employed) Male Female 2013/ / The registered active (employed) security officers have declined by 7.29%. 22

23 SECURITY OFFICERS APPLICATION PROCESSED Application Received Application Approved Application Rejected Application Pending Provisionally Rejected Withdrawn / /

24 SECURITY OFFICERS REGISTRATION Province/Regions No. Of SOs 2013/14 No. Of SOs Gauteng Mpumalanga Eastern Cape Western Cape Limpopo North West Free State Northern Cape Kwa-Zulu Natal TOTAL

25 PROVINCIAL BREAKDOWN OF BUSINESS REGISTRATION Province/ Regions No. of Active Registered Business 2013/14 No. of Active Registered Business Gauteng Mpumalanga Eastern Cape Western Cape Limpopo Northwest Free State Northern Cape Kwa-zulu Natal Total

26 INDUSTRY TRAINING Tittle Goes here 26

27 ACCREDITED TRAINING CENTRES 2013/

28 COURSE REPORTS Course reports Number of course reports 2013/14 Number of course reports 2014 / 2015 Course reports on hand end March Course reports received during April to March Course reports processed during April to March Course reports returned during April to March Course reports carried over to April

29 TRAINING SUB-COMMITTEE 2013/2014 INSTRUCTOR APPLICATIONS CONSIDERED RECOGNITION OF PRIOR LEARNING APPLICATIONS CONSIDERED Total received Approved Rejected Additional information required Total received Approved Rejected Additional information required / 2015 INSTRUCTOR APPLICATIONS CONSIDERED RECOGNITION OF PRIOR LEARNING APPLICATIONS CONSIDERED Total received Approved Rejected Additional information required Total received Approved Rejected Additional information required

30 PHASE OUT OF THE GRADES REPLACE WITH NQF Implementation of the MoU between PSiRA & SASSETA Joint Quality Assurance. Joint Accreditation. Establishment of an industry stakeholder training forum. Establish a stakeholder committee with SAQA and the QCTO. Development of new training standards and various sector qualifications. Review of the current industry Skills Programme. 30

31 TRAINING COMPLIANCE FORUM (TCF) Establishment of the National Training Compliance Forum: Serves to uphold the objects of the Authority in promoting high standards in the training of security service providers and prospective security service providers. Support the implementation of the National Qualifications Framework. To assist in addressing and reducing non-compliance in the training sector. To undertake or facilitate proper communication on training matters between the Authority and stakeholders on national and provincial level. To strengthen a co-operative approach between stakeholders in enhancing training standards within the private security industry. 31

32 REGISTRATION OF THE INDUSTRY PROFESSIONAL BODY Registration of PSiRA as an industry Professional Body: Setting minimum standards for the various sectors within the industry; Emphasising the importance of individuals within the industry to meet defined standards of knowledge, skills and maintaining the development of their professional competence throughout their careers (Continuing Professional Development); Attracting the right candidates to work in our industry (professionalising the private security industry); and Improving the integrity of the private security industry through maintenance of highest professional standard. 32

33 COMMUNICATIONS & STAKEHOLDER ENGAGEMENT Tittle Goes here 33

34 COMMUNICATIONS AND STAKEHOLDER RELATIONS Improving industry compliance through effective stakeholder engagement: 26 Provincial Industry Compliance Forums conducted. 30 Employer/Employee sessions in Partnership with Private Security Provident Fund (PSSPF) Launch of the Industry Training Compliance 6 Industry Training Capacity Building Workshops Empowering Consumers 66 Public Awareness Programmes conducted on PSiRA s role and functions (mall & trade exhibitions, outreach programmes, CSI, media campaigns etc.) Review of Annual Fees Consultation Sessions Consultations sessions conducted in all 9 provinces improve compliance and strengthen stakeholder relation 34

35 RESEARCH & DEVELOPMENT Tittle Goes here 35

36 RESEARCH AND DEVELOPMENT Canine Protection: Dogs and Dog Handlers in the South African Private Security Sector Research aimed at unpacking the canine sector Findings indicate general non compliance with the law by the security service providers The Authority to promote awareness to society to prevent cruelty to animals within the sector 36

37 RESEARCH AND DEVELOPMENT Caught In Between The Involvement of the Private Security Sector in the Taxi Violence in Kwa-Zulu Natal: Focus on Ntuzuma, Piesang and Other Areas Findings indicate non compliance by security companies operating within the taxi industry The Authority to increase capacity in regulating that aspect Research Report to be submitted to the Minister for consideration 37

38 RESEARCH AND DEVELOPMENT Research Surveys Conducted Consumer Trends Survey: Mall Security Consumer Trend Survey: Public and Private Hospitals Consumer Trends Survey: Public and Private Universities in South Africa Consumer Trend Survey: Public and Private Schools in South Africa Some general findings & recommendations in relation to the above surveys: Consumers who know about PSiRA are more likely to receive better services Recommendation Awareness campaigns are required Consumers feel that security officers were generally not adequately trained Recommendation PSiRA must ensure that security officers are adequately trained and ensure compliance with training standards The majority of consumers do not know the role of PSiRA in South Africa Recommendation Awareness programmes are essential 38

39 HUMAN CAPITAL Tittle Goes here 39

40 COMPOSITION OF PERMANENT STAFF PER PROGRAMME Staff composition per programme (Permanent employees only) Law Enforcement Finance and Admin Communication & Training Law Enforcement Finance and Admin Communication & Training Total staff composition including interns and employees on fixed term contracts is

41 COMPOSITION OF PERMANENT STAFF PER PROGRAMME 13,18% 28,64% 58,18% Law Enforcement Finance and Admin Communication & Training Total staff composition excluding interns and employees on fixed term contracts is

42 COMPOSITION OF ALL STAFF PER PROGRAMME Staff composition per programme including interns and employees on Fixed- Term contracts Law Enforcement Finance and Admin Communication & Training Law Enforcement Finance and Admin Communication & Training Total staff composition including interns and employees on fixed term contracts is

43 PERSONNEL COST PER PROGRAMME Personnel expenditure as a % of the total expenditure of the programme. 80% 70% 60% 50% 40% 30% 20% 10% 72% 42% 58% Law Enforcement Finance and Admin Communication & Training 0% Law Enforcement Finance and Admin Communication & Training Law enforcement spent 72% of its budget on personnel cost. The staff distribution shows 58% at law enforcement as compared with other programmes hence the highest personnel. 43

44 VACANCY RATE PER PROGRAMME Vacancy rate % per programme. 35% 30% 29% 25% 20% 17% 24% Law Enforcement Finance and Admin 15% Communication & Training 10% 5% 0% Law Enforcement Finance and Admin Communication & Training At the beginning of the year under review, staff composition was 211. During the year 35 staff were appointed and 26 staff terminated employment. 44

45 EMPLOYMENT AND VACANCIES Total number of vacancies per Occupational Level Top Mgmt Senior Mgmt Prof & Mid Mgmt Skilled & Tech Semi-Skilled Unskilled Top Mgmt Senior Mgmt Prof & Mid Mgmt Skilled & Tech Semi-Skilled Unskilled Total number of vacancies during the year under review is 61 45

46 TERMINATION OF EMPLOYMENT Reason for terminating employment % (Permanent and Contract) 80% 70% 69% 60% 50% 40% 30% Resignation Dismissal Contract Expired Other 20% 10% 8% 8% 15% 0% Resignation Dismissal Contract Expired Other 46

47 LABOUR RELATIONS MANAGEMENT Number of disciplinary matters finalized Written Warning Final Written Warning Dismissal Written Warning Final Written Warning Dismissal 47

48 ORGANISATIONAL PERFORMANCE Tittle Goes here 48

49 PERFORMANCE REPORT PROGRAMME 1:ADMINISTRATION SUB PROGRAMME 1.1 : FINANCE AND ADMINISTRATION Strategic Objective: Ensure good governance and sound financial control environment Performance Indicator a. Annual Adjustments of administrative fees with CPI b. Reviewed annual fees in place d. Funding Policy in place Actual Achieveme nt 2013/14 The administrat ion fees were review and implement ed in March 2014 NA N/A Planned Target Adjustment of administration fees with CPI Annual fees reviewed Develop a funding policy in March 2015 Actual Achievement The adjusted administratio n fees were published in March 2015 The new annual fees were reviewed and effective on 1 April 2015 Funding policy in place Deviation from planned target to Actual Achievement for Achieved - Achieved - Achieved - Comment on deviations e. Reduced external audit findings N/A 95% of findings resolved by tracking against CAP 97% of findings resolved Achieved +2% More efforts and measures were placed to resolve all findings, which resulted in over achieving our target. 49

50 PERFORMANCE REPORT PROGRAMME 1:ADMINISTRATION SUB-PROGRAMME: BUSINESS INFORMATION TECHNOLOGY Strategic Objective: Ensuring that PSIRA has in place effective and reliable IT Systems Performance Indicator Actual Achievement 2013/14 Planned Target Actual Achievement Deviation from planned target to Actual Achievement for Comment on deviations a. Critical IT Infrastructure restored within the set timeline on the Business Continuity policy (working days) b. % of improved IT user satisfaction N/A 2 Surveys were conducted 120 hours 70% user satisfaction rating 36 hours Achieved Average of 76.10% user satisfaction rating + 84 hours Achieved +6.10% The over achievement is due to focus on critical IT infrastructure, which were duly identified and tested. If the entire IT infrastructure system were recovered, it would have taken the Authority close to 120 hours. The user services for IT have been improved. c. Reviewed IT business Continuity Policy in place Policies were approved by Council on 31 March 2014 Review IT Business Continuity in place Reviewed policy approved by council Achieved 50

51 PERFORMANCE REPORT PROGRAMME 1:ADMINISTRATION Strategic Objective: SUB PROGRAMME 1.3 : Human Capital To ensure that PSIRA has a competent, ethical and skilled workforce Performance indicator Actual Achieveme nt 2013/14 Planned Target Actual Achievement Deviation from planned target to Actual Achievement for Comment on deviations a. Frequency of conducting employee performance assessments b. % of employees achieving a performance rating of 3 and above Only 95% of assessment conducted midyear and end of financial year Bi-Annually Performance assessments were successfully conducted N/A 90% 79% of employees achieved a rating of 3 Achieved Not Achieved -11% Mid-year assessment was used for reporting. Remedial steps have been employed to improve the rating with the final assessment. c. % training programmes completed in line with the Work Skill Plan N/A 85% 91% Achieved +6% 51

52 PERFORMANCE INFORMATION PROGRAMME 2: LAW ENFORCEMENT LAW ENFORCEMENT Strategic Objective To enable effective compliance and enforcement of PSIRA legislation in order to achieve behavioural charges in the industry Performance Indicator Actual Achievement 2013/14 Planned Target Actual Achievement Deviation from planned target to Actual Achievement for Comment on deviations a. Number of inspections conducted at security businesses b. Number of inspections conducted on security officers Achieved Achieved Filling of inspector vacancies during the financial year. Assistance from inspectors in the Law Enforcement Department in conducting inspections as part of their investigations Filling of inspector vacancies during the year. The Department was also involved in a number of weekend and after hour operations at sport stadiums to ensure compliance during the events. As a result a high number of security officer inspections were conducted in the 4th quarter. Assistance from inspectors in the Law Enforcement Department to conduct security officer inspections also contributed 52to the over achievement.

53 PERFORMANCE INFORMATION PROGRAMME 2: LAW ENFORCEMENT Strategic Objective PROGRAMME 1: LAW ENFORCEMENT To enable effective compliance and enforcement of PSIRA legislation in order to achieve behavioural changes in the industry Performance Indicator Actual Achievement 2013/14 Planned Target Actual Achievement Deviation from planned target to Actual Achievement for Comment on deviations c. % of investigations finalised in respect of noncompliant SSP s N/A 60% 79% Achieved +19% Appointment of additional inspectors in the Law Enforcement Department. d. % of criminal cases opened against noncompliant SSP S N/A 75% 86% Achieved +11% SAPS registered criminal case codes in respect of offences in terms of PSIR Act on CAS. General improved relations with SAPS on station level through PSIRA/SAPS interaction as well as through stakeholder forums i.e. PICF s e. Reviewed law enforcement strategy in place N/A Review of law enforcement strategy Strategy reviewed Achieved - 53

54 PERFORMANCE INFORMATION PROGRAMME 1: LAW ENFORCEMENT PROGRAMME 1: LAW ENFORCEMENT Strategic Objective To enable effective compliance and enforcement of PSIRA legislation in order to achieve behavioural changes in the industry Performance Indicator f. Number of security businesses licensed to possess firearms inspected Actual Achievement 2013/14 N/A Planned Target Actual Achievement Deviation from planned target to Actual Achievement for Achieved +135 Comment on deviations Assistance from inspectors in the Law Enforcement Department to conduct inspections in respect of businesses licenced for firearms. g. % of inspected SSP s (businesses) complying with the minimum standards per year N/A 60% 50% Not Achieved -10% Refer to note p96 h. % of inspected SSP s (officers) complying with the minimum standards per year i. % of cases of non-compliant SSP s prosecuted per year N/A 60% 42% 70% 89% 79% Not Achieved -18% Achieved +9% Refer to note on p96 Alternative dispute resolution methods employed. 54

55 LAW ENFORCEMENT Explanation for under achievement Misalignment of the technical explanation with the calculation We averaged percentages of compliance standards that were being tested Our target not based on all identified standards but 60% of identified standards The AGSA required all minimum standards identified to be met to qualify as meeting minimum standards (p96 of Annual Report) 55

56 PERFORMANCE INFORMATION PROGRAMME 3: COMMUNICATION,TRAINING AND REGISTRATION PROGRAMME 3.1 : COMMUNICATION Strategic Objective : Promote awareness amongst the public and the private security industry on the functions and role of PSIRA in the industry Performance Indicator a. Number of public awareness programmes on PSIRA s role and functions Actual Achievement 2013/14 43 Public awareness activities done Planned Target 18 Public Awareness Programmes Actual Achievement 66 Public Awareness Programmes Deviation from planned target to Actual Achievement for Achieved +48 Comment on deviations The over achievements as a result of: Deployment of innovative awareness programmes through integrated marketing communication platforms. Furthermore, we intensified our stakeholder collaborative engagements and initiatives with the media and strategic partners such as SAPS, DoL, CCMA and PSSPF. 56

57 PERFORMANCE INFORMATION Strategic Objective : Performance Indicator b. Number of public awareness programmes on PSIRA s role and functions for security businesses c. Number of public awareness programmes on PSIRA s role and functions for security officers PROGRAMME 3: COMMUNICATION,TRAINING AND REGISTRATION PROGRAMME 3.1: COMMUNICATION Promote awareness amongst the public and the private security industry on the functions and role of PSIRA in the industry Actual Achievement 2013/14 N/A N/A Planned Target 6 Industry Awareness Programmes 6 Industry Awareness Programmes Actual Achievement 28 Industry Awareness Programmes 13 Industry Awareness Programmes Deviation from planned target to Actual Achievement for Achieved +22 Achieved +7 Comment on deviations Intensified our compliance forum initiatives Intensified our stakeholder collaborative engagements and initiatives with the media and strategic partners such as SAPS, DoL, CCMA and PSSPF Intensified our compliance forum initiatives Intensified our stakeholder collaborative engagements and initiatives with the media and strategic partners such as SAPS, DoL, CCMA and PSSPF 57

58 PERFORMANCE INFORMATION PROGRAMME 3: COMMUNICATION,TRAINING AND REGISTRATION PROGRAMME 3.1: COMMUNICATION Strategic Objective : Promote awareness amongst the public and the private security industry on the functions and role of PSIRA in the industry Performance Indicator d. Average turnaround time taken to resolve complaints received from consumers through the call centre (working days) Actual Achievement 2013/14 N/A Planned Target Average of 24 hours Actual Achievement Average of 14 hours Deviation from Comment on deviations planned target to Actual Achievement for All complaints received through the call centre Achieved were resolved within 24hour period. Folders of all s documenting the +10 hours time for each complain received and resolved were kept as evidence for auditing purposes. However, this evidence was not sufficient for auditing purposes. Another calculation in line with the technical indicator description formula was done and 93% of complaints received through the call centre were successfully resolved 58

59 PERFORMANCE INFORMATION PROGRAMME 3: COMMUNICATION,TRAINING AND REGISTRATION PROGRAMME 3.2: COMMUNICATION Strategic Objective : Promote awareness amongst the public and the private security industry on the functions and role of PSIRA in the industry Performance Indicator Actual Achievem ent 2013/14 Planned Target Actual Achievement Deviation from planned target to Actual Achievement for Comment on deviations e. Number of awareness programmes on the Sectoral Determination N/A 12 Awareness programmes 17 Awareness programmes done Achieved +5 The over achievements as a result of: Deployment of innovative awareness programmes through integrated marketing communication platforms. Intensified our compliance forum initiatives with both employer associations and trade unions. f. Number of formalised partnerships with employee-based stakeholders N/A 1 MoU 1 MOUs done Achieved 59

60 PERFORMANCE INFORMATION PROGRAMME 3: COMMUNICATION,TRAINING AND REGISTRATION Strategic Objective : PROGRAMME 3.2:TRAINING To promote high standards in the training of security service providers and prospective security service providers (SSPs) Performance Indicator g. Date of implementation of security training policy Actual Achievement 2013/14 Planned Target Actual Achievement N/A March 2015 Established various sector subcommittee to review the current skills programme Deviation from planned target to Actual Achievement for Not Achieved Comment on deviations Unavailability of Key role players such SASSETA and QCTO. The unavailability and commitment of these stakeholders (in particular SASSETA) has contributed to the target not being successfully achieved. h. % of accredited training SSP s complying with the minimum professional standards as stipulated in the training policy N/A 5 % 7% Achieved +2% Industry awareness created in relations to the signed MoU between SASSETA and PSiRA. Effective stakeholder engagement through industry compliance forums especially targeted at training providers also contributed to the over achievement. 60

61 PERFORMANCE INFORMATION PROGRAMME 3: COMMUNICATION,TRAINING AND REGISTRATION PROGRAMME 3.2:TRAINING Strategic Objective : Performance Indicator To promote high standards in the training of security service providers and prospective security service providers (SSPs) Actual Planned Actual Comment on deviations Achievement Target Achievement 2013/14 Deviation from planned target to Actual Achievement for i. Training compliance forums established N/A Establish 1 national forum 1 national forum established Achieved j. Number of capacity building activities for SSP training institutions N/A 4 Capacity building activities 6 Capacity building initiative/workshop Achieved +2 Industry awareness created by the Authority in relations to the signed MoU between SASSETA and PSiRA Improved stakeholder relations between PSiRA and the Electronic Sector also contributed to the over achievement as more stakeholders demanded additional engagements with the Authority with the objective of improving their compliance in relation to industry training. 61

62 PERFORMANCE INFORMATION PROGRAMME 3: COMMUNICATION,TRAINING AND REGISTRATION Strategic Objective : PROGRAMME 3.3: REGISTRATION To ensure that the registration process is transparent and timeous Performance Indicator k. Average turnaround time of applications for registration meeting all the requirements for security businesses (working days) Actual Achievement 2013/14 Average of 15 days Planned Target Actual Achievement 20 days 15 Days Deviation from planned target to Actual Achievement for Achieved + average of 5 days Comment on deviations The stakeholder awareness that took place during the 2014/2015 financial year contributed towards achieving this target. Staff training within the registration unit with objective also added to the operational efficiency improvements. Compiling the registration manual which clearly outlined the processes that internal staff should follow when registering security service providers immensely also had a positive contribution to the target achievement. l. Average turnaround time of applications for registration meeting all the requirements for security officers (working days) Average of 19 days 20 days 17 days Achieved + average of 3 days SAME AS ABOVE 62

63 PERFORMANCE INFORMATION PROGRAMME 3: COMMUNICATION,TRAINING AND REGISTRATION PROGRAMME 3.3: REGISTRATION Strategic Objective : Performance Indicator To ensure that the registration process is transparent and timeous Actual Achievement 2013/14 Planned Target Actual Achievement Deviation from planned target to Actual Achievement for Comment on deviations m. % of new registration certificates rolled out (on active security officers N/A 20% (90 000) 14% (64 106) Not Achieved -6% ( ) The project was only implemented with effect from the 1 st December 2014 due to delays experienced with Home Affairs in integrating the system for finger print verification. Also aging IT infrastructure challenges. n. % of new registration certificates rolled out (on active businesses) N/A 20% (1 800) 13% (1 234) Not Achieved -7% -(566) The project was only implemented with effect from the 1st December 2014 due to delays experienced with Home Affairs in integrating the system for finger print verification. Also aging IT infrastructure challenges. The target could not be achieved as some businesses did not meet the compliance requirements such as full payment of annual administration fees, tax clearance certificate, 63

64 PERFORMANCE INFORMATION PROGRAMME 3: COMMUNICATION,TRAINING AND REGISTRATION Strategic Objective : PROGRAMME 3.4: RESEARCH AND DEVELOPMENT To ensure that PSIRA is a centre of excellence in private security research Performance Indicator Actual Achievement 2013/14 Planned Target Actual Achievement Deviation from planned target to Actual Achievement for Comment on deviations q. Number of completed areas of research that are of high priority 2 research topic proposals were completed 2 Research Topics 2 Research Topics Achieved p. Number of completed surveys N/A 4 Surveys 4 Surveys Achieved 64

65 GOVERNANCE & FINANCIAL RESULTS Tittle Goes here 65

66 OVERVIEW OF THE PRESENTATION Major impacts on current year s results Statement of Financial Position Statement of Financial Performance Statement of Cash Flow Fruitless and Wasteful Expenditure Irregular Expenditure Going Concern and Liquidity Audit Opinion Audit Outcomes 66

67 MAJOR IMPACTS ON CURRENT YEAR S RESULTS Loss of SIA case resulted in: Passing credit notes R115 million for period Ring fenced amounts payable to Security Service Providers from overpayment of Annual Fees R80 million Revaluing Land and Buildings realized a surplus R8.7 million Pension scheme changes from a defined benefit to a defined contribution scheme from 1 April

68 PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Financial Statements for the year ended 31 March 2015 STATEMENT OF FINANCIAL POSITION Restated Figures in Rands Note(s) Assets Non-Current Assets Property, plant and equipment Intangible Assets Total Non Current Assets Current Assets Inventories Trade and other receivables Cash and Cash equivalents Total Current Assets Total Assets Net Assets and Liabilities Net Assets ( ) ( ) Total Equity ( ) ( ) Non- Current Liabilities Operating lease liability Employee benefit obligations Total Non- Current Liabilities Current Liabilities Trade and other payables Unspent conditional grants and receipts Provisions Operating lease liability Employee benefit obligations Total Current Liabilities Total Liabilities Total Net Assets and Liabilities

69 PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Financial Statements for the year ended 31 March 2015 STATEMENT OF FINANCIAL PERFOMANCE Restated Figures in Rands Note(s) Operating revenue Revenue from exchange transactions Sale of goods Rendering of Services Annual Fees Infrastructure re-assessments Course Reports Registration Fees Revenue from non-exchange transactions Grant received Bad Debts recovered Interest received Sundry Income Fines and penalties Total operating revenue Operating expenditure Employee costs 19 ( ) ( ) Other operating costs 18 ( ) ( ) Bad debts 6 ( ) ( ) Finance costs 17 (9749 (27819) Depreciation and amortisation 3&4 ( ) ( ) Total expenditure ( ) ( ) Loss on disposal of assets (14 341) (19 524) Total other expenditure (14341) (19524) 69 Deficit for the year ( ) ( )

70 PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Financial Statements for the year ended 31 March 2015 STATEMENT OF CASH FLOW Figures in Rands Note(s) Cash flows from operating activities Receipts Sales of goods and services and other income Grants Interest received Cash generated from operations Payments Employee costs ( ) ( ) Suppliers ( ) ( ) Interest paid 17 (9 749) (27 819) Cash used in operations ( ) ( ) Net cash flows from operating activities 20 ( ) Cash flows from investing activities Purchase of Property, plant and equipment ( ) Purchase of Intangible assets Net cash flows from investing activities ( ) (Decrease) / Income from investing activities ( ) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

71 FRUITLESS AND WASTEFUL EXPENDITURE PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Services rendered Amount Rand Comment SARS penalties VAT paid to non registered vendor Leave pay over paid on termination SARS interest Interest on creditors accounts Balance Disputed Being recovered Procedures implemented Disputed Procedures implemented 71

72 PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Financial Statements for the year ended 31 March 2015 NOTES TO THE ANNUAL FINANCIAL STATEMENTS Restated Figures in Rands Irregular expenditure Opening Balance Irregular expenditure-current year Less: Errors on the compilation of 2014 amount - ( ) Less: Items identified as not being deviations - ( ) Total Irregular expenditure awaiting condonation Analysis of irregular expenditure awaiting condonation per age classification / / / Total Irregular expenditure awaiting condonation Details of irregular expenditure -current year Amount was incurred due to non adherence to prescripts and applicable legislation, as follows: Type of expenditure Single supplier Irregular Less than three quotes Irregular Deviation from supply chain procedures and prescripts Irregular Non -compliance to the prescripts or legislation Irregular Total current year irregular expenditure Disciplinary steps taken/criminal proceedings No losses where identified and no disciplinary steps have been taken against officials at the date of the financial statement

73 GOING CONCERN AND LIQUIDITY PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY The loss of the SIA court case lead to: Going concern issues - R26 million net liabilities Liquidity issues - R43.9 million net current liabilities Method to address Working capital projection for three years shows PSiRA both solvent and liquid Identify revenue enhancement and cost containment measures Ring-fenced the amounts overpaid in annual fees to be repaid over 3 years Current performance in 2015/16 for five months is a net surplus of R20 million over budget The Authority s ability to raise revenue is based on legislation therefore strengthening the ability to continue to exist despite going concern issue raised by the AGSA 73

74 TOWARDS A CLEAN AUDIT PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY Qualified Audit on Financial Statements 2012/13 Unqualified Audit on Financial Statements 2013/14 Unqualified Audit on Financial Statements 74

75 AUDIT OPINION AUDIT OPINION Unqualified EMPHASIS OF MATTERS - Restatement of corresponding figures Finding Corresponding figures for 31 March 2014 have been restated as a result of errors discovered during the year end 31 March 2015 Steps taken to address findings Prior period errors were raised as a result of credit notes passed for prior year overbillings no further steps needed The bad debt provision and bad debts written off were incorrectly calculated proper procedures need to be followed in bad debts write off and proper review of the provision needs to be made 75

76 AUDIT OPINION EMPHASIS OF MATTERS continued - Going concern Finding Total Liabilities exceed Total Assets at 31 March 2015 by R26 million. The entity made a loss of R16.7 million during the year ended 31 March 2015 Steps taken to address findings Annual Fees were increased from R3 000 per annum to R7 650 per annum for small businesses and the monthly fees paid by businesses for Security Officers employed increased from R0.70 to R1.98 Cost containment in all areas for next three years Ring-fencing refunds due to security service providers of R80.3 million which will be refunded over three years according to certain criteria 76

77 AUDIT OPINION EMPHASIS OF MATTERS continued - Material impairments Finding Provision for impairments of debtors amounted to R9 million Steps taken to address findings Debtors collection processes ensure that overdue debtors accounts are dealt with timeously Letters of Good Standing are not processed for Debtors who are in arrears Irrecoverable debtors are handed over to the legal department to enforce collection 77

78 AUDIT OUTCOMES Report on other legal and regulatory requirements: Performance against predetermined objectives Findings Reliability and usefulness of the reported performance information under the following: Data presented as evidence to support the implementation of the new registration certificates rolled out to security officers and businesses (new indicators) Steps taken to address findings New system to be deployed to improve the integrity of data presented (i.e. replacement of Compiere) Intensify quality assurance major Intensify staff training ( Enhanced capacity and additional IT resource to support operations 78

79 AUDIT OUTCOMES Report on other legal and regulatory requirements: Performance against predetermined objectives Findings Reliability and usefulness of the reported performance information under the following: Data presented as evident to support achievement of the average turnaround time taken to resolve complaints received from customers through the call center was insufficient (new indicator) Steps taken to address findings Secure an efficient call center solution to support Intensify quality assurance measures Intensify staff training Enhanced capacity to support operations 79

80 AUDIT OUTCOMES Compliance with legislation Strategic planning and performance management (lack of internal controls with respect to performance management) - Steps taken - Internal audit in place for the whole year Financial Statements, performance and annual reports (Misstatements) - Steps taken - Misstatements were not as a result of any internal control failings but from differences of opinions on treatment of intangible assets and a certain prior period error - Obtain technical accounting opinion in future 80

81 AUDIT OUTCOMES Compliance with legislation continued Revenue Management (Failure to collect ALL revenue) Steps taken SIA case had a negative impact on revenue collection Effective debtor collection procedures are in place Expenditure Management (Failure to prevent irregular and fruitless and wasteful expenditure) Steps taken The Supply Chain Management Policy has been implemented with clear delegations of authority for emergency procurement and sole suppliers 81

82 AUDIT OUTCOMES Compliance with legislation continued Consequence Management (Failure to discipline official who permitted irregular expenditure) Steps taken No official could held responsible Implement the Supply Chain Management Policy which has clear delegations of authority for emergency procurement and sole suppliers Procurement Management (Quotations awarded not based on preference points) Steps taken Quotations are reviewed by CFO and Manager : Supply Chain Management 82

83 AUDIT OUTCOMES Internal Control Leadership (Management did not ensure performance information was correctly reported and ensure proper systems and internal controls for performance target setting) - Steps taken - Performance Management Committee oversite - Use of Internal Audit Governance (Audit Committee did not approve the internal audit plan timeously) - Steps taken - In place 83

84 THANK YOU Tittle Goes here 84