1 2 AUDIT OUTCOME 2018/19 The 2018/19 Audit reflected significant - PowerPoint PPT Presentation

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AUDIT OUTCOME 2018/19  The 2018/19 Audit reflected significant improvements;  We received an unqualified audit opinion of the Fidelity Fund;  There was only 1 qualification item for the EAAB (commitments on open purchase orders only);  Management disagrees as the amount in dispute is R453k, which we feel is immaterial 4

AUDIT OUTCOME 2018/19 ESTATE AGENCY AFFAIRS BOARD 2018/19 2017/18 1 Revenue - FFC revenue and Issue resolved, hence improved audit There are inadequate internal IT application late payment interest outcome control systems in place 2 Revenue - CPD revenue Issue resolved, hence improved audit The Estate Agency Affairs Board did not outcome recognise revenue from CPD on an accrual basis in accordance with GRAP 9. 3 Trade and other payables – Issue resolved, hence improved audit The auditors were unable to obtain sufficient unallocated funds outcome appropriate audit evidence over classification of unallocated accounts. 4 Employee costs Issue resolved, hence improved audit The employee costs that were disclosed on the outcome annual financial statements did not agree to the payroll reports. 5 Receivables from exchange Issue resolved, hence improved audit The auditors were unable to obtain sufficient transactions outcome appropriate audit evidence regarding account receivables. 6 Commitments and lease Partially improved; The commitments relating to contracts and open comparative amount Contracts were resolved, hence the purchase orders were not disclosed in the qualification was only based on financial statements. commitments on purchase orders ESTATE AGENTS FIDELITY FUND No. Component Basis for Unqualified Audit Opinion Basis for Qualification 2017/18 2018/19 1 Trade and other receivables Issue resolved, hence improved audit The auditors were unable to obtain sufficient and from exchange transactions outcome appropriate audit evidence on the existence and valuation of trade and other receivables from 5 exchange transactions.

FINANCIAL RESULTS 2018/19 STATEMENT OF FINANCIAL POSITION GROUP BOARD 2019 2018 2019 2018 TOTAL ASSETS 817,733,917 809,917,746 224,314,550 208,385,100 TOTAL LIABILITIES 92,425,119 124,199,339 84‘,414,422 100,168,221 NET ASSETS 725,308,798 685,718,407 139,901,128 108,216,879 STATEMENT OF FINANCIAL PERFORMANCE GROUP BOARD 2019 2018 2019 2018 REVENUE 221,504,762 150,154,578 186,184,086 123,193,513 EXPENDITURE (194,223,318) (136,658,812) (166,808,790) (122,536,'677) SURPLUS FOR THE YEAR 27,281,444 13,495,766 19,375,296 656,836 6

REGISTRATIONS R E G I S T R AT I O N S A N D R E N E WA L S S e c t i o n 2 6 o f t h e E s t a t e A g e n c y A f f a i r s A c t , 1 1 2 o f 1 9 7 6 p r o v i d e s t h a t “ n o p e r s o n s h a l l p e r f o r m a n y a c t a s a n e s t a t e a g e n t u n l e s s a v a l i d F i d e l i t y F u n d C e r t i f i c a t e h a s b e e n i s s u e d t o h i m o r h e r a n d t o e v e r y p e r s o n e m p l o y e d b y h i m o r h e r a s a n e s t a t e a g e n t … ” T h e R e g i s t r a t i o n s D e p a r t m e n t i s c h a r g e d w i t h t h e r e s p o n s i b i l i t y f o r t h e l i c e n s i n g o f e s t a t e a g e n t s a n d e s t a t e a g e n c i e s . T h e d e p a r t m e n t a l s o e f f e c t s a m e n d m e n t s t o b o t h e s t a t e a g e n t s ’ a n d e s t a t e a g e n c i e s ’ p r o f i l e s . E s t a t e a g e n t s a r e r e q u i r e d t o t r a n s a c t w i t h t h e E s t a t e A g e n c y A f f a i r s B o a r d ( E A A B ) v i a t h e E A A B ’s w e b s i t e h t t p s : / / w w w. e a a b . o r g . z a / m y f f c b y l o g g i n g a q u e r y w h e r e t h e y w i l l b e a b l e t o t r a c k t h e p r o g r e s s o f i t s r e s o l u t i o n . E s t a t e a g e n t s a n d e s t a t e a g e n c i e s a r e i s s u e d w i t h a n u n i q u e s e v e n d i g i t r e f e r e n c e n u m b e r u p o n r e g i s t r a t i o n . T h i s n u m b e r i s t o b e u s e d a t a l l t i m e s w h e n a n e s t a t e a g e n t / e s t a t e a g e n c y i n t e r a c t s w i t h t h e E A A B o r t h e e s t a t e a g e n t / e s t a t e a g e n c y m a k e s a p a y m e n t . T h e s e v e n d i g i t r e f e r e n c e n u m b e r f o r t h e f i r m s t a r t s w i t h a n “ f ” d e n o t i n g t h a t i t i s a r e f e r e n c e n u m b e r f o r a e s t a t e a g e n c y f i r m . 8

REGISTRATIONS Cont /… R E G I S T R AT I O N S A N D R E N E WA L S E s t a t e a g e n t s w h o s e p a y m e n t s a r e m a d e n o t u s i n g t h e i r s e v e n d i g i t r e f e r e n c e n u m b e r s r u n t h e r i s k o f t h e i r p a y m e n t s n o t b e i n g t i m e o u s l y m a t c h e d w i t h i n v o i c e s a n d d e l a y s i n t h e i s s u i n g o f t h e i r F i d e l i t y F u n d C e r t i f i c a t e s ( F F C ’s ) . F i d e l i t y F u n d C e r t i f i c a t e s a r e d u l y i s s u e d t o a l l e s t a t e a g e n t s a n d e s t a t e a g e n c y e n t e r p r i s e s t h a t h a v e f u l l y c o m p l i e d w i t h t h e E A A B r e g i s t r a t i o n r e q u i r e m e n t s a n d w h o h a v e n o t b e e n r e n d e r e d d i s q u a l i f i e d f o r a n y o f t h e r e a s o n s r e f e r r e d t o i n t h e E A A A c t i n c l u d i n g , i n p a r t i c u l a r, n o n - c o m p l i a n c e w i t h s e c t i o n 3 2 ( 3 ) ( b ) o f t h e E A A A c t w h i c h t h e e s t a t e a g e n c y, t h r o u g h i t s r e g i s t e r e d a u d i t o r i s r e q u i r e d t o s u b m i t t h e a u d i t r e p o r t w i t h i n f o u r m o n t h s a f t e r t h e f i n a n c i a l y e a r e n d o f t h e e s t a t e a g e n c y. D u r i n g t h e 2 0 1 8 / 1 9 f i n a n c i a l y e a r t h e E A A B i s s u e d a t o t a l o f 6 0 8 8 3 F i d e l i t y F u n d C e r t i f i c a t e s a n d r e g i s t r a t i o n c e r t i f i c a t e s t o e s t a t e a g e n t s , a 2 2 . 6 4 % i n c r e a s e c o m p a r e d t o 4 9 6 4 5 F F C ’s i s s u e d i n t h e p r e v i o u s f i n a n c i a l y e a r. T h e g r a p h b e l o w r e f l e c t s t h e n u m b e r o f F i d e l i t y F u n d C e r t i f i c a t e s i s s u e d d u r i n g t h e y e a r u n d e r r e v i e w. 9

TOTAL REGISTRATIONS AND RENEWALS PROVINCE 31 March 2019 31 March 2018 Eastern Cape 452 401 Free State 210 204 Gauteng 3 511 3 461 Kwa-Zulu Natal 908 828 Limpopo 171 137 Mpumalanga 201 190 North West 182 186 Northern Cape 46 54 Western Cape 2 458 2 173 Total 8 139 7 634

EDUCATION & TRAINING DEPARTMENT REPORT  The Education and Training department is responsible for implementing and monitoring compliance with the Standard of Training of Estate Agents Regulations, 2008 (known as Education Regulations). With the aim of professionalising and supporting the transformation of the real estate sector. In terms of these regulations, estate agents are required to comply with internship, qualification, professional designation examination and continuing professional development requirements.  On internship requirements, 1 063 intern estate agents who entered the sector successfully submitted their intern logbooks which were assessed as compliant with the prescribed criteria in terms of Regulation 2 of the Education Regulations.  In terms of qualifications compliance, 1 109 estate agents were trained and certificated against the prescribed qualifications in terms of regulation 4(1)(a) of the Education Regulations. In addition 1 128 estate agents were granted education exemptions and these were confirmed to have complied with the requirements set out in regulation 4(1)(a) of the Education Regulations. 12

EDUCATION & TRAINING DEPARTMENT REPORT CONT /…  1 546 Estate agents have written the Professional Designation Examination (also known as the PDE or the Board examination).  1 134 Estate agents who have completed the Professional Designation Examination have been awarded the relevant professional designations.  48 Estate agents who are aged 60 years and above were granted the aged-based exemption, this in attempt to assist and retain aged estate agents in the sector.  185 Estate agents who continued to practice in the profession were exempted from undertaking the prescribed professional designation examination. This exemption is aimed at recognising the estate agents' work experience and thus retaining them in the sector. 13