updated strategic plan for period 2012/13-2016/17 redressing the past, building the future, guiding...

UPDATED STRATEGIC PLAN

FOR PERIOD 2012/13-2016/17

REDRESSING THE PAST, BUILDING THE FUTURE,

GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM

PRESENTATION OUTLINE



• VISION• MISSION• VALUES• LEGISLATIVE AND OTHER MANDATES• SITUATIONAL ANALYSIS• ALIGNMENT OF GOVERNMENT WIDE

PRIORITIES• ORGANISATIONAL ENVIRONMENT• SWOT ANALYSIS• LINK BEWTEEN, STRATEGIC OUTCOME AND

KEY OUTPUTS• FINANCIAL PLAN• STRATEGIC RISK REGISTER

STRATEGIC OVERVIEW



STRATEGIC OVERVIEW



VALUES

•Integrity

•Responsibility

•Respect

•Excellence

•Communication

•Participation

•Trust

RELEVANT LEGISLATURE APPLICABLE TO EAAB



• Legislative Mandates

The South African Constitution; Act 108 of 1996;The Estate Agency Affairs Act, 112 of 1976;The Public Finance Management Act, 1 of 1999;The Preferential Procurement Framework Act of 2000;The Financial Intelligence Centre Act, 38 of 2001; The Labour Relations Act, 66 of 1995;The SA Qualifications Authority Act, 58 of 1995; and The Skills Development Act, 97 of 1998The Promotion of Administrative Justice Act 3 of 2000The Promotion of Access to Information Act 2 of 2000The National Credit Act 34 of 2005The Consumer Protection Act 68 of 2008

EAAB MANDATE



• Primary Mandate of EAAB• Regulate, maintain and promote the standard of conduct of estate

agents having due regard to the public interest; • Issue fidelity fund certificates to qualifying applicants; • Prescribe the standard of training of estate agents; • Investigate complaints against estate agents and institute

disciplinary proceedings against offending estate agents where required; and

• Manage and control the Estate Agents Fidelity Fund.

Additionally to the primary mandate:• The EAAB is the Supervisory Body of the estate agency profession

pursuant to the Financial Intelligence Centre Act and is obliged to take all steps required to prevent; alternatively, identify and report on, anti-money laundering and terrorist financing activities

UPDATED SITUATIONAL ANALYSIS



Performance Environment

Economic factors that impact Estate Agency growth:

•Lower forecasted Economic growth

•Higher anticipated inflation rate and interest rates.

•Implementation of the National Credit Act

•Scarcity of new developments

•Stricter bank lending to property buyers

•8 million consumer with impaired credit records

UPDATED SITUATIONAL ANALYSIS



Performance Environment - Continued

Other factors that affect Estate Agents Industry:

•Estate Agents may take advantage in the growing inexperienced property consumers. This may lead to higher claims made against Fidelity Fund.

•Mismanagement of Trust fund has continued to be a challenge within the Industry.

•The growing use of technology has impacted the practices of Property practices.

ALIGNMENT OF GOVERNMENT WIDE-PRIORITIES WITH EAAB ACTIVITIES



Government- Wide Priorities EAAB Activities

Speeding up growth and transforming the economy to create decent work and sustainable livelihoods

Support of Property Sector Charter Council in the implementation of BBBEE Codes in the Property industry.Encouraging Estate Agencies to train and develop PDI.

Massive programme to build economic and social infrastructure

Encouraging involvement of Estate Agents in the implementation of low-cost and affordability housing programmes.

Comprehensive rural development strategy linked to land and agrarian reform and food security

Improving accessibility to the 9 provinces in respect of Estate Agency Affairs Board services and support.

ALIGNMENT OF GOVERNMENT WIDE- PRIORITIES WITH EAAB ACTIVITIES



Government- Wide Priorities EAAB ActivitiesStrengthen the skills and human resource base

Partnership created with Primary, Secondary and Tertiary levels of education in order expand the awareness and education of the Industry and the Profession.Creation of Estate Agency Learnership opportunities.

Intensify the fight against crime and corruption

Improve the effectiveness of the whistleblower process.Improve the legislation applicable to Estate Agents.Improve partnerships between EAAB and other regulating authorities.

ALIGNMENT OF GOVERNMENT WIDE-PRIORITIES WITH EAAB ACTIVITIES



Government- Wide Priorities EAAB Activities

Pursuing African advancement and enhanced international cooperation

Participation in International bodies activities which promote the regulation of Real Estates. i.e. ARRELO.Inviting and hosting African Regulators to conferences and one on one engagements.

Sustainable resource management and use Compliance with the “green” concepts in EAAB operations.

Building a developmental state, including improvement of public services and strengthening democratic institutions

Efficiency and Effectiveness in the service delivery of the EAAB and Fidelity Fund.

ORGANISATIONAL ENVIRONMENT



Executive Authority

Board of Directors

Risk and Strategy

Internal Audit

Chief Executive OfficerCompany Secretary

Fidelity Fund

ExecutiveCompliance

Executive Inspections

ExecutiveRegistrations

Executive Education &

Training

ExecutiveCorporate services

SWOT ANALYSIS



Threat Opportunities

• Increase in emerging home owners and renters and consequent escalation in the number of complaints and claims impacting upon the Board’s resources and the Fund.

• Increase in white-collar crime would lead to higher claims from Fidelity Funds.

• More sectional title properties on the market and increased malfeasances by sectional title managers.

• Tight banking credit application may lead to a reduction in the number of sales transactions.

• The slow economic recovery may lead to a reduction in the number of estate agents.

• Build consumer understanding of the property transactions;

• Increase consumer awareness of the estate agency industry;

• Increase the number of estate agents especially from previously disadvantaged groups;

• Amend the Act to support the EAAB strategic intent;

• Better investment opportunities for investing the fidelity fund;

• Build partnerships that would improve the ability of EAAB to ensure compliance to the Act

SWOT ANALYSIS



Threats Opportunities• An increase in a number of unregistered

estate agents “no commission based companies” will erode the integrity of the property sells industry.

• Claims against the fidelity fund emanating from unregistered estate agents may increase.

• Unlimited amounts of claims either in size or number of claims may deplete the fidelity fund

• Loss of revenue as result of non compliance to banking money into trust account.

• Inefficiency of local authorities and deeds office has a negative impact on estate agent cash flow

• Improve communication between stakeholders and EAAB

• Establish Estate agents as members of a professional body

• Mitigating the sustainability of fidelity fund

• Use of FFC’s to enforce transformation and compliance

• Involving more stakeholders e.g. BEAFSA

• Improve performance of industry to regulation to go beyond mere compliance

• Improve the sustainability of previously disadvantaged estate agents

SWOT ANALYSIS



Strengths Weaknesses

• Competent staff with experience is ready to take EAAB forward

• Implemented IT systems e.g. SAP to enable EAAB to improve performance

• A well managed Fidelity Fund

• Committed management team

• Improved working environment e.g. security

• Improved registration process

• Levels of systems integration could be improved to support service delivery

• Poor ratio of recoveries to claims • • Slow turn-around times for client

service complaints • • Insufficient capacity to comply with

mandate. • Work redo is common

SWOT ANALYSIS



Strengths Weaknesses

• Conducted stakeholder awareness campaigns

• Infrastructure is available to support the effective implementation of the EAAB mandate

• Insufficient reporting, monitoring and control structures

• Performance culture not fully implemented • • Performance management system ineffectively

applied• • Need improvement of corporate governance• • Staff turnover erodes the experience curve

Linking Strategic outcomes to Performance Indicators



StrategicOutcome

Output Performance Indicator

Annual Milestone

To improve compliance with the Estate Agency Affairs Act.

Increased impact on prosecutions

Number of complaints received, investigated and resolved.

12/13 -102813/14 – 1100 14/15 – 1200 15/16 – 130016/17 - 1400

Increased impact of inspections

Number of Estate Agencies inspected

12/13 -100813/14 – 121014/15 – 1452 15/16 – 174216/17 - 2090




StrategicOutcome


Annual Milestone New Registrations

Annual Milestone Renewals

To improve compliance with the Estate Agency Affairs Act.

Improved Registration process

Number of new registrations and renewals processed

12/13 - 8206 13/14 - 9126 14/15 -10088 15/16 - 11042 16/17 - 12146

12/13 - 4923813/14 – 5416214/15 – 5957815/16 – 6553616/17 - 72090




StrategicOutcome


Annual Milestone

To increase stakeholder awareness of the EAAB and its role and services

Increased consumer awareness of EAAB and Estate Agents Industry

Consumer awareness campaigns performed

12/13 -1213/14 - 16 14/15 - 1815/16 - 2016/17 - 22

Improved Estate Agents awareness of EAAB and Estate Agents Industry

Estate Agents awareness campaigns performed

12/13 -1213/14 - 16 14/15 - 1815/16 - 2016/17 - 22




StrategicOutcome


Annual Milestone

To effectively and efficiently manage EAAB

Improved processing of Fidelity Fund certificates

Number of on-line registrations processed

12/13 - 38413/14 - 50014/15 - 60015/16 - 70016/17 - 800

To effectively and efficiently manage the Fidelity Fund

T improve the Growth of Fidelity Fund

Percentage growth in the Fidelity Fund

Growth at Consumer Price Index from 2012/13 to 2016/17 financial periods.




StrategicOutcome


Annual MilestoneNQF Level 4

Annual MilestoneNQF Level 5

To build capacity of key stakeholder

Development of industry training with services SETA

Number of NQF candidates enrolled and passed the Professional designation Exam

12/13 - 30013/14 - 100014/15 - 150015/16 - 200016/17 - 3000

12/13 - 10013/14 - 15014/15 - 20015/16 - 25016/17 - 300




StrategicOutcome


Annual Milestone

To build capacity of key stakeholder

To improve the standards of education and training service providers

Number of service providers inspected for compliance to accreditation standards

12/13 -1513/14 - 16 14/15 - 1815/16 - 2016/17 - 22

Improve education and training of existing qualified Estate Agents

Number of candidates enrolled on CPD

12/13 -50013/14 - 150014/15 - 300015/16 - 400016/17 - 6000

FINANCIAL PLAN



REVENUE AND EXPENDITURE ESTIMATES - EAAB

2012/13 R’000

2013/14 R’000

2014/15 R’000

2015/16 R’000

2016/17 R’000

Revenue

Expenditure

(Loss)/Surplus

89,449

75,564

13,885

86,049

85,044

1,005

93,633

90,951

2,682

100,187

97,534

2,653

107,200

104,361

2,839

FINANCIAL PLAN



REVENUE AND EXPENDITURE ESTIMATES – EAFF

2012/13 R’000

2013/14 R’000

2014/15 R’000

2015/16 R’000

2016/17 R’000

REVENUE 63,824 66,156 70,786 75,742 81,043

EXPENSES

62,245 66,107 70,736 75,688 80,986

SURPLUS/DEFICT 1,579

47 50 53 57

STRATEGIC RISK REGISTER



Risk number

Risk Description EAAB ActionPlan

Residual Risk Rating

Risk Owner

GR1 Ineffective communication of investigation results to the public.

Inspection and investigation policy to be developed to inform and guide process for quality assurance of investigation results / reports prior to distribution to the public.

High EM: Enforcement




Risk number



Risk Owner

GR2 Budget constraints hampering achievement of Marketing targets.(i.e. Consumer education workshops).

An effective budgeting and strategic planning process has been put in place. (i.e. Inclusion of Marketing budgetary requirements in budgeting process).

Moderate CEO




Risk number



Risk Owner

GR3 Problematic historical relationship with the Services Seta.

MOU entered between EAAB and SSETA in respect of appointment of EAAB as quality assurer.

Moderate CEO

GR4 Road shows and awareness materials do not reach target audience (i.e. consumer).Inapt partner used for consumer education programs.

Monitoring of Actual implementation of planned initiatives as per approved Marketing Strategy.

High Marketing and Communications Manager




Risk number



Risk Owner

GR5 Non compliance with legislative requirements (The South African Constitution; Estate Agency Affairs Act; Public Finance Management Act; Preferential Procurement Framework Act; Financial Intelligence Centre Act; Labour Relations Act; SA Qualifications Authority Act; Skills Development Act).

PFMA and Treasury compliance checklist in place.Develop compliance checklists for all applicable legislation for quarterly monitoring and reporting to Board.

High Board Secretary




Risk number



Risk Owner

GR6 Lack of transformation within the industry.

Transformation committee established. Effective functioning Transformation Committee.

High CEO/Board

GR7 Non-evaluation of performance of Board and Committees.

Evaluations process is currently being established

High Board Secretary




Risk number



Risk Owner

GR8 Ineffective organisational structure to implement strategic plan and mandate.

Inclusion of organisational structure review in the annual organisational business planning.

Moderate CEO

GR9 Slow resolution of queries received and escalated by the call centre. (i.e. queries not resolved within 5 days as per policy).

Appointment of Customer Relations Manager and department to interface between internal query process and the customer.

Moderate Customer Relations Manager




Risk number



Risk Owner

GR10 Not meeting expectations of stakeholders. Inadequate awareness measures (e.g. Road shows; Newsletters; Magazine).

Conduct a stakeholder survey to determine level and effectiveness of awareness measures in place and to highlight expectation gap.

Moderate CEO

GR11 Staff competence not adequately assessed.

Implementation of Performance Management system

Moderate CEO




Risk number



Risk Owner

GR12 Inadequate communication for reinforcing of mandate to Management and staff.

Internal Communications Policy reviewed and approved by EXCO on an annual basis. Internal communication policy work shopped and communicated to EAAB staff.

High Marketing and Publications Manage




Risk number



Risk Owner

GR13 Fidelity Fund target growth not met.

Implement a separate governance structure to monitor growth.

High Board members




Risk number



Risk Owner

GR14 Low interest of individuals to enter the industry due to uncertain nature of an estate agents income.Lack of government support and direction to increase incentives.

An effective transformation committee to review and determine action plan to address support structures for estate agents sustainability.

An effective transformation committee in place to ensure issues are addressed.

High CEOTransformation committee



THANK YOU

updated strategic plan for period 2012/13-2016/17 redressing the past, building the future, guiding...

Documents

real estate industry

estate agents industry

estate agency affairs

offending estate agents

estate agents fidelity

information act

impact estate agency

consumer protection