ANNUAL REPORT 2016/17 - Provincial Government...(PIC) and Futuregrowth Asset Management...

ANNUAL REPORT

2016/17

GPFCatalyst for delivering sustainable human settlements

G A U T E N G P A R T N E R S H I P F U N D

1

ANNUAL REPORT | 2016 / 2017

Contents PagePART A: GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

List of Abbreviations/Acronys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Foreword by the MEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Report of the Chairperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Report of the Chief Executive Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Organisational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Statement of Responsibility and Confirmation of Accuracy for the Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Strategic Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Legislative and other Mandates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

PART B: PERFORMANCE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Auditors’s Report: Predetermined Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Situational Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

GPF Annual Performance Plan Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Performance Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Product Performance Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Partnership Programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Strategy to Overcome Areas of Underperformance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

PART C: GOVERNANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Executive Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

The Accounting Authority / Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51


2


Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Internal Control Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Internal Audit and Audit and Risk Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Compliance with Laws and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Fraud and Corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Minimising Conflict of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Code of Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Company/Board Secretary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Report of the Audit and Risk Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

PART D: HUMAN RESOURCE MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Human Resource Oversight Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

PART E: FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . 79Report of the Auditor-General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Report of the Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Statement of Financial Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Statement of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Statement of Comparison of Budget and Actual Amounts . . . . . . . . . . . . . . . . . . . . . . . . . 94

Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Notes to the Annual Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Contents Page

GENERAL INFORMATION

PART A


4


General Information

Country of incorporation and domicile South Africa

Nature of business and principal activities Financing vehicle for sustainable human settlements and mega projects in Gauteng

Registered office, 82 Grayston Drive, Sandton,Johannesburg, 2196

Postal address PO Box 652247Benmore2010

Executive authority Member of Executive Council (MEC)

Website address www.gpf.org.za

Bankers Absa Bank Limited15 Troye StreetJohannesburg2001

Auditors Auditor General South AfricaRegistered Auditors61 Central StreetHoughtonJohannesburg2193

Company registration number IT2422/02

Attorneys Cliffe Dekker Hofmeyr Inc.

Contact details 011 685 6600/ [email protected]


5


List 0f Abbreviations /Acronyms

AGSA Auditor-General South Africa

APP Annual Performance Plan

B-BBEE Broad-Based Black Economic Empowerment

CEO Chief Executive Officer

CFO Chief Financial Officer

CIO Chief Investment Officer

CSI Corporate Social Investment

EEEPF Entrepreneur Empowerment Property Fund

FICA Financial Intelligence Centre Act

GDHS Gauteng Department of Human Settlements

GDP Gross Domestic Product

GPF Gauteng Partnership Trust T/A Gauteng Partnership Fund with registration number IT2422/02 registered as a Schedule 3C public entity under the PFMA

GPF Gauteng Provincial Government

ICT Information and Communication Technology

M&E Monitoring and Evaluation

MEC Member of Executive Council for Human Settlements

MTEF Medium-term Expenditure Framework

NDP National Development Plan

PFMA Public Finance Management Act, Act No. 1 of 1999 as amended

PPP Public-private Partnerships

RHF Rental Housing Fund

SCM Supply Chain Management

SHF Social Housing Fund

SHI Social Housing Institutions

SMME Small, Medium and Micro Enterprises

TR Treasury Regulations

PIC Public Investment Corporation

Futuregrowth Futuregrowth Asset Management

NHBRC National Housing and Building Regulatory Council


6


Housing delivery in Gauteng has entered a bold new phase. We are ready to meet the expectations of the millions of our citizens who depend on the commitment contained in the Freedom Charter that “there shall be houses, security and comfort for all.”

We have every reason to be proud of the performance of the Gauteng Provincial Government (GPG) since the democratic transition in 1994.Our budgets are growing; our strategies are in place and our frameworks were created to support the broader vision of a Gauteng City Region that is able to meet the housing and social-economic needs of a growing population.

Now is the time for accelerated implementation!

In this regard, the Gauteng Partnership Fund (GPF) will be a critical player in our new approach of fast- tracking delivery and implementing our vision of Mega Cities (“Big Cities”) that are characterised by their ability to be self- sufficient in the provision of housing, social amenities and quality infrastructure.

These megacities will enable us to transform the spatial landscape of Gauteng, build cohesive and sustainable communities and provides our residence with security of tenure and a choice of housing options.

History has taught us that government acting on its own cannot achieve this. We need the active participation and support of communities who will benefit from housing delivery and we need partnerships with the private sector that can leverage funds and contribute their accumulated knowledge and experience to enable us to meet our targets.

FOREWORD BY THE MEC

Honourable Paul Mashatile

MEC

FOREWORD BY THE MEC


7


It is for this reason that we have taken the decision to reposition the GPF by placing it at the coalface of our efforts to attract private sector investment into the social housing and GAP housing markets.

We have high expectations of the GPF to build strategic and sustainable partnerships with the private sector, donor community and the development finance institutions in order to mobilise the requisite housing development funds.

The GPF will work even closer with the Gauteng Department of Human Settlements and we will ensure that the existing blockages and red tape that might delay housing delivery are removed and that adequate resources are allocated.

We have great confidence in the ability of the Board and Executive Management of the Gauteng Partnership Fund and, together with the people of Gauteng; we are looking forward to you playing a pivotal role in the accelerated implementation of our strategies.

Paul Mashatile MEC for Co-operative Governance, Traditional Affairs and Human Settlements in Gauteng

FOREWORD BY THE MEC FOREWORD BY THE MEC

Phahamo


8


Dear valued stakeholders,

I am pleased to present the Gauteng Partnership Fund (GPF) Annual Report for the year ended 31 March 2017.

During the financial year the mandate of the GPF was expanded and now goes beyond its previous focus of providing financing solutions for social and affordable housing, to being the financing vehicle and implementing agent of the Gauteng Department of Human Settlements (GDHS) for Mega human settlements. To date, 19 Mega Human Settlements Projects have been enlisted and will be implemented over three years, starting with 12 in the current financial year. An Implementation Protocol governing project execution has been entered into between the GPF and the GDHS.

Repositioning the GPF also entails a review of the legal structure and corporate form, with the specific intent being to dissolve the Gauteng Partnership Trust and establish GPF as a State-owned Company (SOE) listed as a PFMA Schedule 3D, Provincial Government Business Enterprise. The PFMA schedule 3D listing is an important driver of GPF’s expanded mandate as it provides the organisation with the capability to leverage other funding sources to accelerate the delivery of Mega Human Settlements Projects and strengthen the balance sheet while supporting the long-term sustainability of the organisation.

We are proud of our flagship programme, the Entrepreneur Empowerment Property Fund (EEPF), which currently supports 94 emerging black property developers of which almost half are youth and women. The EEPF has capacitated black-owned companies to sustainably enter the residential rental property market.

CHAIRPERSON REPORT

Lindiwe Mthimunye-BakoroChairperson

CHAIRPERSON REPORT


9


In 2016 we concluded funding partnerships for social and rental housing with the Public Investment Corporation (PIC) and Futuregrowth Asset Management (Futuregrowth). The PIC facility of R350m has been fully committed while the Futuregrowth facility of R250m is approximately 40% committed. Capital raising remains a priority, which is in line with our expanded mandate to strengthen our delivery capability, to ensure that GPF and Province meet the strategic objectives and performance targets.

In the current financial year the Board composition changed materially. The new Board of Trustees of GPF was appointed by the Honourable MEC Mashatile in November 2016. The new appointments are aimed at strengthening the Board to adequately support the GPF process of strategic repositioning and role alignment to the new mandate given to the organisation by the Executive Authority in March 2016.

Overall, GPF has maintained its performance against the mandated objectives over the years and we are confident that we will maintain our good governance record. I commend the management team and my fellow Board members for sound governance and maintaining a healthy loan book.

We look forward to working closely with the leadership of the Gauteng Department of Human Settlements. We fully support the vision of human settlements delivery through Mega Human Settlements Projects and the expanded mandate of the GPF to mobilise funding for Mega projects.

To all our stakeholders – thank you for your support.

Lindiwe Mthimunye-Bakoro Chairperson

CHAIRPERSON REPORT

CHAIRPERSON REPORT


10


The 2016/17 financial year was a critical period for GPF, as the organisation went through significant changes in mandate and a new Board of Trustees was appointed by the Executive Authority, Honourable MEC Paul Mashatile. Over the past years the GPF has evolved from Social Housing to Affordable Housing, and now to implementing Mega Human Settlement projects as illustrated below in Fig 1.

Fig. 1 – GPF Mandate evolution

The GPF’s mandate is to serve as the funding and implementing t o serve as the funding and implementing agent for integrated, sustainable human settlement developments in the Gauteng City Region and custodian of strategic provincial land transferred to GPF for effective fixed asset management and a coordinated, efficient implementation of mega human settlement projects.

We view this change as testimony to the confidence in the GPF as a vehicle to execute such a huge responsibility and task on behalf of the Gauteng Department of Human Settlements (GDHS). The GPF has over the years matured as an organisation through a firm foundation and deliberate investment in people and systems. All of this is underpinned by shared values and a performance culture.

CEO OVERVIEW

Boni MuveviCEO

CEO OVERVIEW


11


Since announcing of the change in GPF’s mandate in March 2016, the Fund has embarked on an iterative process to critically examine its strategic posture, direction and business model in line with the evolving mandate. A GPF strategic framework and business model has been developed taking into consideration the trends and shifts in the regulatory, policy, and performance delivery environments, and its operational framework and resources. These strategic framework will guide the GPF’s positioning and long-term strategic planning beyond the MTEF period, aligned to 2030 Gauteng City Region Vision.

In the 2016/17 financial year under review, GPF spent R68.4m versus an operational budget of R109m. The variance is mainly attributed to timing of payments for capital raising service providers that had to be rolled over to the 2017/18 budget. We continue to enhance the supply chain management processes and systems ain line with Treasury guideline. Over the period we ensured there is competitive bidding for procured services and goods, therefore we did not conclude any unsolicited bids.

As at 31 March 2017, the GPF had committed 95% of its available funds to projects, and in terms of liquidity, the commitments were covered 1.05 times. The cost-to-income ratio increased from 91% to 94% in comparison with the previous year, due to timing of expenses that related to capital raising fees, legal fees incident to the capital raising, salaries and IT integration.

The GPF loan book remained healthy and continues to perform well across all funding products, as reflected by our loan book bad debts at approximately 1.82% (below 5% target).

CEO OVERVIEW


12


We continue to apply risk mitigation measures upfront to our business and have a hands-on approach to management of potential project performance risk. In managing our business we review our process to ensure that we meet our clients’ turnaround expectations and future business sustainability requirements.

In 2016 we concluded co-funding partnerships with the Public Investment Corporation (PIC), and Futuregrowth Asset Management (Futuregrowth). The PIC facility of R350m has been fully committed while the Futuregrowth facility of R250m is approx. 40% committed. Capital raising remains a priority, in line with our expanded mandate to strengthen our delivery capability and ensure that GPF and GDHS meet their strategic objectives and performance targets.

The underlining principle of the GPF business model – the leveraging of public risk – is our target of 30:70 external funding. In 2016/17, we attracted a total of R417m of non-GPF funding, in comparison to R253m in the previous reporting period. The GPF has met and exceeded its 2016/17 completed housing targets for social and rental units (target of 1 200 housing units vs 1 462 housing units completed).

As illustrated below in Fig 2, GPF has performed well since inception in 2003, in the majority of the past years exceeding set targets despite the financial and delivery environment challenges at the time. The GPF has committed R1,9bn vs a budget of R1,6bn (excluding project loan cancellations).

Fleurhof


13


Fig. 2 GPF Budget vs Commitments

We look forward to executing our expanded mandate and positioning the GPF to play a critical role in mobilising public and private sector funding for human settlements projects, in order to realise the government’s vision. We have aligned the GPF business focus to the new vision, have outlined key short-term milestones, and developed a long-term strategy that will enable the GPF team to implement the expanded mandate. Our priority is to deliver on the mandate, but to do so while taking into consideration the sustainability of GPF in the long-term.

We recognise that delivering mega human settlements is more complex than social and affordable rental housing projects. However, “having understood the government’s vision as a “collective”, and through planning, alignment of resources of the public and private sectors, we can turn the vision into reality”. The critical element for the successful delivery of the Mega Human Settlements is the crowding-in of private sector funding resources and in execution of the projects. The GPF’s role is to facilitate, provide effective oversight, and implement projects while creating an environment for the private sector to participate.

Lastly, I would like to extend my sincere gratitude to the Honourable MEC, Paul Mashatile, Human Settlements Head of Department (HOD) Ms. Matilda Gasela, Board Chairperson Ms. Lindiwe Mthimunye-Bakoro, Board members, Executive management team and staff for their continued support.

Boni MuveviChief Executive Officer


14


Orga

nisat

ional

Stru

cture

2016

/17


15


Sta

ff 2

016/

17


16


Statement Of Responsibility And Confirmation Of Accuracy For The Annual ReportTo the best of my knowledge and belief, I confirm the following:

• All information and amounts disclosed in the annual report are consistent with the annual financial statements audited by the Auditor General.

• The annual report is complete, accurate and is free from any omissions.

• The annual report has been prepared in accordance with the guidelines on annual reporting as issued by National Treasury.

• The Annual Financial Statements (Part B) have been prepared in accordance with the South African Generally Recognised Accounting Practice (GRAP) standards applicable to the Public Entity and the Public Finance Management Act of South Africa, 1999. (Act No. 1 of 1999) (PFMA).

• The accounting authority is responsible for the preparation of the annual financial statements and for the judgements made in this information.

• The accounting authority is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.

• The external auditors have been engaged to express an independent opinion on the annual financial statements.

• In our opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the entity for the financial year ended 31 March 2015.

Yours faithfully

Boni Muvevi Lindiwe Mthimunye-Bakoro

Chief Executive Officer Chairperson


17


Strategic OverviewVision

The partner of choice in affordable housing delivery in Gauteng.

Mission

As a public sector affordable housing delivery vehicle, we:

• Mobilise new and innovative funding streams for projects

• Leverage private and public sector finance to ensure better bankability of projects

• Facilitate collaboration between public and private sector partners

• Promote accountability, monitoring and efficiency in the implementation of projects, thereby enabling co-ordinated effort by both the public and private sectors in sustainable, integrated human settlements delivery.

Legislative And Other MandatesThe Gauteng Department of Human Settlements (GDHS) is mandated is to “ensure the provision of housing and the effective functioning of local government across the province in order to build sustainable communities and facilitate shared and equitable social and economic growth and development”.

In support of the GDHS mandate, and as a GDHS public entity, the mandate of the GPF is derived from the Trust Deed, 2002. In terms of the deed, the GPF has a specific mandate to:

• Form partnerships to address funding blockages and bottlenecks within the sustainable human settlements sector

• Facilitate investment capital flows into integrated developments as per the Sustainable Human Settlements Policy Framework

• Facilitate equitable risk sharing project financing

• Participate in Social Housing Projects through innovative funding interventions with Social Housing institutions (as a mechanism to entice capital market investment into this market).

PERFORMANCE INFORMATION

PART B


19


Auditors Report: Predetermined ObjectivesThe Auditor-General of South Africa (AGSA) currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the Report to Management, with material findings being reported under the Predetermined Objectives heading in the Report on other Legal and Regulatory Requirements section of the Auditor’s Report. Refer to page 82 of the Auditor’s Report.

Situational AnalysisDespite the rise in interest rates during the last quarter of 2016/2017, Gauteng is still sitting with a fairly healthy housing market, especially within the affordable housing sector. Against the background of a relatively tough economic environment, the residential rental market benefited from households’ preference for rental over outright purchases of residential property. Data from TPN indicates that affordable rentals between R3 000.00 and R7 000.00 have generally continued to experience low vacancies compared to other segments of the market.

The trends within the property sector which have entrenched themselves over the past couple of years, continue to increasingly play out in different ways. There is continued demand for accommodation in small, gated communities where costs and responsibilities are shared and people work together as a community. Also evident is a continuing trend of property developers investing in mixed-use developments, secure private estates as well as sectional title complexes. The Gauteng Department of Human Settlements has refocused its approach in delivering sustainable human settlements to building new cities, referred to as ‘Mega Projects’. GPF will be instrumental in the implementation of Gauteng’s Mega projects. These projects are expected to lead to radical transformation of human settlements and spatial planning in Gauteng. Despite the negative economic outlook, Gauteng remains relatively attractive for investment.

For the year under review, applications received for funding across all portfolios were

somewhat affected by:

√ the FeesMustFall campaign, which negatively impacted on the demand for finance towards new student accommodation complexes;

√ Funding constraints, in that GPF only received 25% of funding allocation from GDHS during this period;

√ Limited available capital to fund social housing projects;

√ Unavailability of institutional subsidies for social housing projects;

√ Unavailability of senior funding for Entrepreneur Empowerment Property Fund projects; and

√ Relatively higher interest rates which resulted in higher equity contribution requirements for projects.

As a result of these factors, targets across all programmes were revised downward during the mid-year performance review.


20


Organisational environment

As mentioned by the Chairperson in her report during the current financial year the Board composition changed materially. The new Board of Trustees of GPF was appointed by the Honourable MEC Mashatile in November 2016. The new appointments are aimed at strengthening the Board to adequately support the GPF process of strategic repositioning and role alignment to the new mandate given to the organisation by the Executive Authority in March 2016.

In assessing its consolidated environment analysis that informs the strategic direction of the GPF. The contextual factors have been work shopped with GPF leadership team and summarised into the below analysis, which in turn has informed the critical issues requiring targeted interventions by the Shareholder, the Board and GPF Management, to support the revised mandate and shift in role of the organisation.

• Re-capitalisation of the GPF: The GPF budgeted R714.8 million and only received R406 million from GDHS. Included in this was a R211 million that was received late in the fourth quarter, which was ear-marled for Mega Projects.

• Lack of senior funding commitment: Although the GPF secured senior funding from PIC and Futuregrowth to a total of R600 million that seemed not to be enough as there are still a great need to secure additional senior funding.

• Construction delays: This includes delays in both in obtaining municipal approval to commence with construction, and in NHBRC processes due to the backlogs resulting in delays of project registration.

• No budget allocation for subsidies: Budget requirement for the Institutional Subsidies Programme were not met by the Social Housing Fund, and hence targets were not met.

Key policy developments and legislative changes

The GPF is not aware of any significant policy or legislative changes that affected its operations.

Strategic Outcome Oriented Goals

The GPF formulated and aligned its strategic outcome-oriented goals to the GDHS as follows:-

Goal 1: Additional capital raised and facilitated to deliver sustainable human settlements across Gauteng;

Goal 2: Implementation of GDHS Mega projects supported; and - Package Mega Projects for investment facilitation and capital flows commit other funding from co-funders to affordable housing units

Goal 3: GPF effectively and efficiently managed and governed.


21


The 3 Strategic Outcome-Orientated Goals will enable GPF to effectively focus and prioritise its options in delivering on its mandate, aligned to the goals of GDHS and driven by the following strategic objectives:

Linked to GDHS Strategic Goals (As per GDHS APP 2017/18)

GPF Strategic Goal(Outcome)

GPF Strategic Objective(Output)

1. Sustainable, modernised New Towns across the GCR

1. Additional capital raised and facilitated to deliver sustainable human settlements across Gauteng

1.1) Implement a multi-pronged capital raising strategy and plan

1.2) Ensure effective and efficient fund management and reporting

2. Gauteng’s human settlements policies and spatial plans enable fast-tracked delivery of New Towns.

GDHS immovable assets maintained and managed at high standards

2. Implementation of GDHS Mega Projects supported

2.1) Package Mega Projects for investment facilitation and capital flows

2.2) Commit other funding from co-funders to affordable housing units

2.3) Assist with project management, monitoring and evaluation of Mega Projects

2.4) Raise awareness about the GPF Brand by developing and implementing branding, public relations and stakeholder management initiatives

3. Accountable, compliant, efficient, effective and responsive governance and management of GDHS

3. GPF effectively and efficiently managed and governed

3.1) Ensure a high performing and values-driven organisation

3.2) Ensure effective, efficient, prudent and compliant financial management

3.3) Provide effective ICT management and systems integration

3.4) Ensure a well governed and compliant organisation

3.5) Ensure proactive, sound legal and risk management

3.6) Ensure GPF is financially sustainable


22


GP

F A

NN

UA

L P

ER

FO

RM

AN

CE

RE

VIE

W 2

016/

17

GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

11. A

vi

sibl

e,

repu

tabl

e an

d pr

efer

red

partn

er in

th

e af

ford

able

ho

usin

g m

arke

t

1.1.

To

rais

e aw

aren

ess

abou

t the

ne

w G

PF b

rand

by

deve

lopi

ng a

nd

impl

emen

ting

bran

ding

, pub

lic

rela

tions

and

st

akeh

olde

r m

anag

emen

t

Vis

ible

, re

puta

ble

and

pref

erre

d pa

rtner

in

affo

rdab

le

hous

ing

To d

evel

op a

ne

w G

PF

Mar

ketin

g an

d C

omm

unic

atio

ns

Stra

tegy

, in

clud

ing

bran

ding

, lo

go, C

I m

anua

l and

pa

y-of

f lin

e

GP

F M

arke

ting

and

Com

mun

icat

ions

S

trate

gy

New

GPF

Bra

nd

Iden

tity

(logo

, pay

-of

f lin

e C

I man

ual)

Mar

ketin

g &

C

omm

unic

atio

ns

GP

F M

arke

ting

and

Com

mun

icat

ions

Stra

tegy

New

GPF

Bra

nd Id

entit

y (lo

go, p

ay-o

ff lin

e C

I m

anua

l

GP

F M

arke

ting

and

Com

mun

icat

ions

Stra

tegy

New

GPF

Bra

nd Id

entit

y (lo

go,

pay-

off l

ine

CI m

anua

l

Rou

nd R

obin

was

dra

fted

to

be a

ppro

ved

by th

e B

oard

of

Trus

tees

.

Targ

et w

as re

vise

d in

Qua

rter 2

. Ta

rget

for Q

uarte

r 3 a

nd Q

uarte

r4

was

met

.

80

% o

f pla

nned

in

itiat

ives

im

plem

ente

d >7

5% c

usto

mer

sa

tisfa

ctio

n

App

rova

l an

d im

plem

enta

tion

of

cons

olid

ated

an

nual

pla

n an

d al

igne

d bu

dget

, with

se

ctio

ns

addr

essi

ng:

Mar

ketin

g an

d C

omm

unic

atio

ns, P

ublic

R

elat

ions

an

d S

take

hold

er

Man

agem

ent i

nitia

tives

A

nnua

l C

usto

mer

S

atis

fact

ion

Inde

x ra

ting

App

rove

d 20

17/1

8 M

&C

, PR

and

SM

A

nnua

l Pla

n w

ith

budg

et

Mar

ketin

g P

lan

Rep

ort-

A

chie

vem

ents

ag

ains

t pla

n C

usto

mer

S

atis

fact

ion

Sur

vey

Rep

ort

Mar

ketin

g &

C

omm

unic

atio

ns

App

rova

l of 2

017/

18

M&

C, P

R a

nd S

M A

nnua

l P

lan

with

bud

get

70%

of p

lann

ed

initi

ativ

es im

plem

ente

d >7

5% c

usto

mer

sa

tisfa

ctio

n

70%

of p

lann

ed i

nitia

tives

im

plem

ente

d

Cur

rent

ly a

wai

ting

for

appr

oval

from

EXC

O

75%

of p

lann

ed i

nitia

tives

im

plem

ente

d In

conc

lusi

ve d

ue to

o lo

w

resp

onse

rate

. Cus

tom

er

satis

fact

ion

was

sen

t to

150

and

only

rece

ived

16

repl

ied,

(1

1% p

eopl

e re

spon

ded)

.

Targ

et m

et

Targ

et e

xcee

ded

Targ

et n

ot m

et. I

ncon

clus

ive

due

to

low

resp

onse

rate

. Cus

tom

er

satis

fact

ion

was

sen

t to

150

and

only

rece

ived

16

repl

ied.

GP

F w

as

focu

sing

on

deve

lopi

ng a

new

GPF

m

anda

te a

nd th

e qu

estio

nnai

re w

as

sent

out

on

the

last

qua

rter.

In

futu

re w

e w

ill s

end

out t

he

ques

tionn

aire

on

the

3rd q

uarte

r.

2.

Affo

rdab

le

hous

ing

deliv

ered

in

sup

port

of

2.1.

Sup

port

the

impl

emen

tatio

n of

G

DH

S M

ega

Pro

ject

s

Impl

emen

tatio

n of

GD

HS

Meg

a pr

ojec

ts

Des

ktop

ev

alua

tion

and

asse

ssm

ent

of tw

o m

ega

proj

ects

for

Rep

orts

, min

utes

of

mee

tings

, co

mm

unic

atio

n pa

per t

rail

with

st

akeh

olde

rs

Pro

ject

s

Des

ktop

eva

luat

ion

and

faci

litat

ion

on tw

o m

ega

proj

ects

Ta

rget

has

bee

n ex

ceed

ed;

we

have

don

e de

skto

p ev

alua

tion

on 8

meg

a pr

ojec

ts.

Targ

et h

as b

een

exce

eded

GP

F A

NN

UA

L P

ER

FO

RM

AN

CE

RE

VIE

W 2

016/

17


23


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

gove

rnm

ent

s pr

ogra

mm

e of

spa

tial

trans

form

atio

n,

sust

aina

bil

ity a

nd

incl

usiv

ity

inve

stm

ent

faci

litat

ion

and

capi

tal

flow

s

2.2.

GD

HS

sub

sidi

es

com

mitt

ed

GD

HS

sub

sidi

es

com

mitt

ed

Ran

d V

alue

of

sub

sidi

es

com

mitt

ed

GP

F Fi

nanc

ial

repo

rt P

roje

cts

R50

0 m

illion

0 Ta

rget

was

not

ach

ieve

d m

ainl

y du

e to

;

Th

e im

plem

enta

tion

prot

ocol

was

con

clud

ed o

n th

e 25

th J

anua

ry 2

017,

G

PF

rece

ived

fund

ing

allo

catio

n of

R26

6 m

illion

on

13

Mar

ch, w

hich

was

al

read

y en

d of

four

th

quar

ter.

Ther

e w

ere

no in

stitu

tiona

l su

bsid

y ag

reem

ents

co

nclu

ded

on a

ll pr

ojec

ts

incl

uded

in th

e im

plem

enta

tion

prot

ocol

.

2.3.

GD

HS

Uni

ts

faci

litat

ed

GD

HS

Uni

ts

faci

litat

ed

Num

ber o

f G

DH

S U

nits

fa

cilit

ated

Off-

take

ag

reem

ents

be

twee

n th

e de

velo

per o

r co

ntra

ctor

and

G

DH

S

Pro

ject

s 4

545

0

Targ

et w

as n

ot a

chie

ved

mai

nly

due

to;

•The

impl

emen

tatio

n pr

otoc

ol w

as

conc

lude

d on

the

25th

Jan

uary

20

17, G

PF

rece

ived

fund

ing

allo

catio

n of

R26

6 m

illion

on

13

Mar

ch, w

hich

was

alre

ady

end

of

four

th q

uarte

r.

•The

re w

ere

no in

stitu

tiona

l sub

sidy

ag

reem

ents

con

clud

ed o

n al

l pr

ojec

ts in

clud

ed in

the

impl

emen

tatio

n pr

otoc

ol.

2.4.

Del

iver

affo

rdab

le

hous

ing

units

Del

iver

af

ford

able

ho

usin

g un

its

Num

ber o

f co

mpl

eted

af

ford

able

ho

usin

g un

its p

er

annu

m (t

otal

al

l pro

duct

s)

Com

plet

ion

certi

ficat

es

Pro

ject

s 12

00

3 47

3 (1

200

+227

3)

1462

U

nits

com

plet

ed a

re o

nly

rela

ted

to

affo

rdab

le re

ntal

pro

ject

s. T

here

w

ere

no s

ubsi

dise

d un

its

com

plet

ed. D

ue to

the

follo

win

g;

Th

e im

plem

enta

tion

prot

ocol

was

con

clud

ed o

n th

e 25

th J

anua

ry 2

017,

G

PF

rece

ived

fund

ing

allo

catio

n of

R26

6 m

illion

on

13

Mar

ch, w

hich

was

al

read

y en

d of

four

th

quar

ter.


24


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

Th

ere

wer

e no

inst

itutio

nal

subs

idy

agre

emen

ts

conc

lude

d on

all

proj

ects

in

clud

ed in

the

impl

emen

tatio

n pr

otoc

ol,

ther

efor

e pr

ojec

ts c

ould

no

t be

impl

emen

ted.

P

erce

ntag

e of

com

plet

ed

proj

ects

w

ithin

the

curr

ent

finan

cial

ye

ar w

ith

occu

patio

nal

certi

ficat

e

issu

ed

Occ

upat

ion

Cer

tific

ate

for

each

com

plet

ed

proj

ect i

n cu

rren

t ye

ar

Pro

ject

s 10

0%

70%

90

%

Targ

et e

xcee

ded,

The

re s

eem

to b

e so

me

impr

ovem

ent i

n th

e tu

rnar

ound

tim

es o

f the

m

unic

ipal

ities

to in

spec

t com

plet

ed

proj

ects

and

issu

e oc

cupa

tiona

l ce

rtific

ates

. Thi

s pr

oces

s us

ed to

ta

ke re

lativ

ely

long

er w

hich

resu

lted

in d

elay

s w

ith th

e is

suan

ce o

f oc

cupa

tiona

l cer

tific

ates

.

Per

cent

age

of p

roje

cts

that

are

un

der

cons

truct

ion

enro

lled

with

N

HB

RC

Enr

olm

ent

certi

ficat

e of

pr

ojec

ts

com

plet

ed in

cu

rren

t yea

r

Pro

ject

s 10

0%

100%

99

%

Targ

et n

ot m

et.

At t

he ti

me

of re

porti

ng, t

here

wer

e on

ly 4

uni

ts th

at w

ere

not N

HBR

C

regi

ster

ed, t

here

wer

e pe

nalti

es th

at

wer

e su

ppos

e to

be

reso

lved

by

the

deve

lope

r with

NH

BR

C p

rior t

o en

rollm

ent.

The

mat

ter h

as s

ince

be

en re

solv

ed b

etw

een

the

deve

lope

r and

NH

BR

C. T

he 4

uni

ts

are

now

enr

olle

d w

ith N

HB

RC

.

.

2.5.

To

impl

emen

t pr

ojec

ts a

risin

g fro

m

MoU

's w

ith p

rovi

nce

and

loca

l gov

ernm

ent

Impl

emen

t pr

ojec

ts a

risin

g fro

m M

OU

’s w

ith

prov

ince

and

lo

cal g

over

nmen

t

Num

ber o

f pr

ojec

ts

initi

ated

in

partn

ersh

ip

with

m

unic

ipal

itie

s

Fina

ncia

l mod

el

feas

ibilit

ies,

or

corr

espo

nden

ce

with

the

offic

ials

fro

m th

e m

etro

s or

pr

ojec

t inf

orm

atio

n

Pro

ject

s 1x

Pro

ject

initi

ated

from

pr

evio

us y

ears

MO

U’s

1x M

OU

sig

ned

1x P

roje

ct in

itiat

ed fr

om

prev

ious

yea

rs M

OU

’s

none

Th

e pr

ojec

t sta

lled

due

to th

e m

unic

ipal

arr

ears

on

the

prop

erty

po

rtfol

io b

y th

e se

ller.

The

selle

r w

ants

Eku

rhul

eni D

evel

opm

ent

corp

orat

ion

to a

ssum

e re

spon

sibi

lity

to p

ay th

e ar

rear

s an

d co

ntra

ct fo

r th

e fu

ll pu

rcha

se p

rice

for t

he

prop

ertie

s.

GP

F as

sist

in im

plem

entin

g so

cial

ho

usin

g pr

ojec

ts in

itiat

ed b

y m

etro

s or

age

ncie

s of

met

ros,

ther

efor

e w

e ca

n on

ly g

et in

volv

ed w

hen

the

met

ros

have

iden

tifie

d th

e pr

ojec

ts.

the

proc

ess

of id

entif

ying

pro

ject

s is

no

t in

our c

ontro

l. It

is

reco

mm

ende

d th

at th

is ta

rget

sh

ould

fall

away

in th

e ne

xt fi

nanc

ial

year

.

2.6.

To

leve

rage

af

ford

able

hou

sing

E

nhan

ce th

e vi

abilit

y of

in

vest

men

t int

o

Ren

tal

Ho

us

ing

F

un

d:

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

Pro

ject

s R

225,

5m

R11

3m

R95

767

979

Ta

rget

Not

Met

, mai

nly

due

to la

ck

of s

enio

r fun

ding

in th

e m

arke

t; w

e ar

e aw

aitin

g se

nior

fund

er a

ppro

val


25


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

finan

ce

affo

rdab

le

hous

ing.

R

and

valu

e of

leve

rage

d fu

ndin

g (e

xclu

ding

es

timat

ed

capi

talis

ed

inte

rest

)

Min

utes

fo

r R11

,6 m

illion

from

Fut

ure

Gro

wth

.

Ren

tal

Ho

us

ing

F

un

d:

Ran

d va

lue

of G

PF

com

mitm

ent

s (in

clud

es

estim

ated

ca

pita

lised

in

tere

st)

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s R

96.7

m

R48

.3m

R

35,4

31,1

04

Targ

et n

ot m

et, d

eal f

low

was

af

fect

ed b

y la

ck o

f sen

ior f

undi

ng,

high

er e

quity

requ

irem

ents

for

proj

ects

due

to re

lativ

ely

high

er

inte

rest

rate

s.

Ren

tal

Ho

us

ing

F

un

d:

Num

ber o

f fa

cilit

ated

un

its

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s 40

0 40

0 32

3 Ta

rget

not

met

, dea

l flo

w w

as

affe

cted

by

lack

of s

enio

r fun

ding

as

wel

l as

limita

tions

on

the

expo

sure

lim

it pe

r clie

nt. G

PF’

s po

licy

dict

ates

th

at G

PF

can

only

lend

a m

axim

um

of 1

0% o

f the

cap

ital t

he G

PF h

olds

to

any

one

ent

ity. D

urin

g th

e ye

ar

unde

r rev

iew

we

have

had

to

redu

ce o

ur e

xpos

ure

on o

ne o

f our

re

ntal

pro

ject

, Erf

7305

chi

awel

o by

R

2 m

illion

. We

also

reje

cted

po

tent

ial p

roje

cts

by A

lleyr

oads

as

they

wer

e ab

ove

the

expo

sure

Enh

ance

the

viab

ility

of

inve

stm

ent i

nto

affo

rdab

le

hous

ing

So

cial

H

ou

sin

g

Fu

nd

:

Ran

d va

lue

of G

rant

Fu

ndin

g

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s R

221m

R

110.

5m

R 2

10 8

08 9

40

Targ

et e

xcee

ded

GP

F on

ly fu

nded

one

pro

ject

und

er

the

fund

. The

pro

ject

was

rela

tivel

y bi

g in

siz

e w

hich

resu

lted

in h

ighe

r th

an e

nvis

aged

priv

ate

sect

or

fund

ing.

So

cial

H

ou

sin

g

Fu

nd

:

Ran

d va

lue

of G

PF

Deb

t co

mm

itmen

ts

(incl

udes

es

timat

ed

capi

talis

ed

inte

rest

)

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s

R21

7,6m

-Hig

h

R10

8.8m

-Low

R10

8,8m

R

50m

Ta

rget

not

met

.

The

deal

flow

on

soci

al h

ousi

ng is

de

term

ined

onl

y by

wha

t pro

ject

s re

ceiv

e th

e R

estru

ctur

ing

Cap

ital

Gra

nt (R

CG

) fro

m th

e S

ocia

l H

ousi

ng R

egul

ator

y A

utho

rity

(SH

RA

). Th

e on

ly a

ppro

val f

or

soci

al h

ousi

ng w

as o

n a

proj

ect

appr

oved

in th

e 20

15 /

2016

fin

anci

al y

ear b

y th

e S

HR

A.

The

deal

flow

was

exp

ecte

d in

the

last

2 q

uarte

rs o

f the

fina

ncia

l yea

r


26


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

but t

he p

roje

cts

appr

oved

by

the

SH

RA

in N

ovem

ber 2

016

and

Mar

ch 2

017

indi

cate

d th

at th

ey

wer

e no

t rea

dy w

ith th

eir b

usin

ess

plan

to s

ubm

it fo

r deb

t fun

ding

. In

ther

e w

ere

no in

stitu

tiona

l sub

sidy

ap

prov

al fo

r the

pro

ject

s.

1 00

0-Lo

w

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s

2 00

0 10

00

870

The

deal

flow

on

soci

al h

ousi

ng is

de

term

ined

onl

y by

wha

t pro

ject

s re

ceiv

e th

e R

estru

ctur

ing

Cap

ital

Gra

nt (R

CG

) fro

m th

e S

ocia

l H

ousi

ng R

egul

ator

y A

utho

rity

(SH

RA

). Th

e on

ly a

ppro

val f

or

soci

al h

ousi

ng w

as o

n a

proj

ect

appr

oved

in th

e 20

15 /

2016

fin

anci

al y

ear b

y th

e S

HR

A.

The

deal

flow

was

exp

ecte

d in

the

last

2 q

uarte

rs o

f the

fina

ncia

l yea

r bu

t the

pro

ject

s ap

prov

ed b

y th

e S

HR

A in

Nov

embe

r 201

6 an

d M

arch

201

7 in

dica

ted

that

they

w

ere

not r

eady

with

thei

r bus

ines

s pl

an to

sub

mit

for d

ebt f

undi

ng. I

n th

ere

wer

e no

inst

itutio

nal s

ubsi

dy

appr

oval

for t

he p

roje

cts.

.

Stu

den

t A

cco

mm

od

atio

n P

roje

cts

- le

vera

ge fu

ndin

g fo

r affo

rdab

le

stud

ent

acco

mm

odat

ion.

Stu

den

t A

cco

mm

od

ati

on

fu

nd

:

Ran

d va

lue

of le

vera

ged

fund

ing

(exc

ludi

ng

estim

ated

ca

pita

lised

in

tere

st)

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s R

102,

3m

R51

,1m

R

30

051

354

Targ

et N

ot M

et, m

ainl

y du

e to

lack

of

sen

ior f

undi

ng in

the

mar

ket;

we

are

awai

ting

seni

or fu

nder

app

rova

l fo

r R87

milli

on fr

om F

utur

e G

row

th

Stu

den

t A

cco

mm

od

ati

on

fu

nd

:

Ran

d va

lue

of G

PF

debt

co

mm

itmen

ts

(incl

udes

es

timat

ed

capi

talis

ed

inte

rest

)

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s R

43,8

m

R21

.9m

R 4

7 67

8 02

6.00

G

PF

only

fund

ed o

ne p

roje

ct u

nder

th

e fu

nd. T

he p

roje

ct w

as re

lativ

ely

big

in s

ize

whi

ch re

sulte

d in

hig

her

than

env

isag

ed G

PF fu

ndin

g co

mm

itted

Stu

den

t A

cco

mm

od

ati

on

fu

nd

:

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

Pro

ject

s 65

0 32

5 65

9 Ta

rget

exc

eede

d

GP

F on

ly fu

nded

one

pro

ject

und

er

the

fund

. The

pro

ject

was

rela

tivel

y


27


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

Num

ber o

f fa

cilit

ated

be

ds

Min

utes

bi

g in

siz

e w

hich

resu

lted

in h

ighe

r th

an e

nvis

aged

GPF

fund

ing

com

mitt

ed

En

trep

ren

euri

al

emp

ow

erm

ent

pro

per

ty f

un

d –

to

ena

ble

sust

aina

ble

entra

nce

of

HD

I’s in

the

affo

rdab

le re

ntal

ho

usin

g m

arke

t

En

trep

ren

euri

al

Em

po

wer

me

nt

Fu

nd

:

Ran

d va

lue

of le

vera

ged

fund

ing

(exc

ludi

ng

estim

ated

ca

pita

lised

in

tere

st)

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s 1

07m

R

54m

R

35 0

35 5

89.0

0 D

ue to

lack

of s

enio

r fun

ding

, GP

F fu

nded

mos

t of t

he p

roje

cts

unde

r E

EP

F 10

0%.

En

trep

ren

euri

al

Em

po

wer

me

nt

Fu

nd

:

Ran

d va

lue

of G

PF

debt

co

mm

itmen

ts

(incl

udes

es

timat

ed

capi

talis

ed

inte

rest

)

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s R

71,5

m

R35

.8m

R

83 0

30 5

73

Targ

et e

xcee

ded

Ther

e w

as la

ck o

f sen

ior f

unde

rs to

co

-fund

EE

PF

proj

ects

with

the

GP

F, th

is re

sulte

d in

GPF

hav

ing

to

prov

ide

100%

fund

ing

to p

roje

cts.

Th

is w

ere

proj

ects

that

wer

e in

itial

ly

co-fu

nded

with

NH

FC a

nd w

ere

been

con

side

red

as n

ew p

roje

ct a

s th

ere

wer

e be

en re

stru

ctur

ed to

in

crea

se th

e nu

mbe

r of u

nits

.

En

trep

ren

euri

al

Em

po

wer

me

nt

Fu

nd

:

Num

ber o

f fa

cilit

ated

un

its

Man

agem

ent

Acc

ount

s/ A

nnua

l R

epor

t/ B

oard

M

inut

es

Pro

ject

s 44

4 22

2 30

0 Ta

rget

exc

eede

d

Ther

e w

as la

ck o

f sen

ior f

unde

rs to

co

-fund

EE

PF

proj

ects

with

the

GP

F, th

is re

sulte

d in

GPF

hav

ing

to

prov

ide

100%

fund

ing

to p

roje

cts.

Th

is w

ere

proj

ects

that

wer

e in

itial

ly

co-fu

nded

with

NH

FC a

nd w

ere

been

con

side

red

as n

ew p

roje

ct a

s th

ere

wer

e be

en re

stru

ctur

ed to

in

crea

se th

e nu

mbe

r of u

nits

.

3. A

n op

timal

ly

capi

talis

ed

and

man

aged

fin

anci

al

asse

t

3.1.

To

secu

re

addi

tiona

l ca

pita

lisat

ion

for t

he

GP

F

Add

ition

al

capi

talis

atio

n.

Cap

ital

fund

ing

rece

ived

fro

m th

e E

xecu

tive

Aut

horit

y

Man

agem

ent

Acc

ount

s/

Qua

rterly

Rep

orts

Fina

nce

R71

4.8m

(Tot

al c

apita

l rec

eive

d)

R71

4.8m

R

714.

8m

(Tot

al c

apita

l rec

eive

d)

R40

6m

Targ

et n

ot a

chie

ved.

Mat

ter

esca

late

d to

the

Boa

rd.

Gau

teng

H

uman

Set

tlem

ents

has

adv

ised

th

at th

ey w

ill tr

ansf

er fu

nds

for

meg

apro

ject

s on

sig

natu

re o

f the

im

plem

enta

tion

prot

ocol

. T

he

Bus

ines

s pl

an o

f Hum

an


28


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

base

. S

ettle

men

ts th

at it

incl

udes

bud

get

in th

e ou

ter y

ears

for m

ega

proj

ects

th

at G

PF

will

impl

emen

t.

C

apita

l fu

ndin

g re

ceiv

ed

from

ex

tern

al

sour

ces

(oth

er th

an

GD

HS

)

Exp

ress

ion

of

Inte

rest

Dra

ft Te

rm

She

et/ Q

uarte

rly

Rep

orts

/ Boa

rd

min

utes

Cap

ital R

aisi

ng &

S

peci

al P

roje

cts

R1b

n

R1b

n

A

FD (R

510m

)

PIC

(R65

0m)

Tota

l: R

1.16

bn

Targ

et a

chie

ved

3.2.

To

ensu

re a

w

ell-m

anag

ed a

nd

effe

ctiv

e in

tern

al

cont

rol e

nviro

nmen

t

Pos

itive

ou

tcom

e of

A

udit

Rep

orts

.

Num

ber o

f si

gnifi

cant

m

atte

rs o

f em

phas

is o

n ex

tern

al

audi

t rep

ort

rela

ting

to

the

finan

cial

s of

th

e G

PF

Aud

itor G

ener

al

Rep

ort

Fina

nce

1

1 Ye

ar-e

nd a

udit

unde

rway

Ye

ar-e

nd a

udit

to c

ompl

eted

31

July

20

17.

3.3.

To

ensu

re th

e m

anag

emen

t of t

he

cost

s of

the

GPF

To e

nsur

e an

ef

fect

ivel

y m

anag

ed

portf

olio

(loa

n bo

ok)

Per

cent

age

varia

nce

on

oper

atio

nal

expe

nditu

re

budg

et

Ann

ual F

inan

cial

S

tate

men

ts/

Inve

stm

ent

Por

tfolio

Rep

orts

Fina

nce

±5%

of B

udge

t ±5

% o

f Bud

get

41%

U

nder

ach

ieve

men

t due

to s

taff

vaca

ncie

s, le

gal f

ees

and

capi

tal

rais

ing

fees

.

4.

Acc

ount

abl

e Inve

stm

ent

Por

tfolio

an

d Fu

nd

Man

agem

ent

4.1

To m

aint

ain

a pe

rform

ing

loan

boo

k

To m

aint

ain

a pe

rform

ing

loan

bo

ok

% o

f bad

de

bt w

ritte

n of

f

Por

tfolio

M

anag

emen

t R

epor

t/ A

nnua

l Fi

nanc

ial

Sta

tem

ents

/ Fi

nanc

e R

epor

t

Por

tfolio

Man

agem

ent

Not

gre

ater

than

5%

N

ot g

reat

er th

an 5

%

1%

Targ

et a

chie

ved

A

rrea

rs %

P

ortfo

lio

Man

agem

ent

Rep

ort/A

nnua

l Fi

nanc

ial

Sta

tem

ents

/ Fi

nanc

e R

epor

t

Por

tfolio

Man

agem

ent

Not

gre

ater

than

5%

N

ot g

reat

er th

an 5

%

1.22

%

Targ

et a

chie

ved

C

olle

ctio

n %

P

ortfo

lio

Man

agem

ent

Rep

ort/A

nnua

l Fi

nanc

ial

Sta

tem

ents

/ Fi

nanc

e R

epor

t

Por

tfolio

Man

agem

ent

Not

less

than

95%

N

ot le

ss th

an 9

5%

72%

R

epay

men

ts re

conc

iliatio

n fin

alis

ed

afte

r 15th

of e

ach

mon

th.

Hig

h va

canc

ies

in th

e 1st

yea

r of

tena

ntin

g/af

ter c

onst

ruct

ion

4.2

To e

nsur

e se

curit

y ov

er a

sset

s To

ens

ure

secu

rity

over

as

sets

% o

f pr

oper

ties

insu

red

Insu

ranc

e po

licy

docu

men

t /

Insu

ranc

e co

nfirm

atio

n le

tter

from

the

Insu

ranc

e

Por

tfolio

Man

agem

ent

100%

10

0%

100%

Ta

rget

ach

ieve

d


29


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

com

pany

%

of s

ite

visi

ts

Site

Vis

it R

epor

t P

ortfo

lio M

anag

emen

t 80

%

80%

81

%

Targ

et e

xcee

ded

4.3

To e

nsur

e th

at th

e cl

ass

of p

erso

ns w

ho

have

bee

n no

min

ated

ar

e be

nefic

iarie

s of

the

trust

Ens

ure

clie

nts

nom

inat

ed m

eet

the

man

date

% o

f clie

nts

mee

ting

the

man

date

Ben

efic

iary

R

evie

w R

epor

t P

ortfo

lio M

anag

emen

t 80

%

80%

86

%

Targ

et e

xcee

ded

4.4

To e

nsur

e ef

fect

ive

third

par

ty fa

cilit

y m

anag

emen

t

Ens

ure

effe

ctiv

e th

ird p

arty

m

anag

emen

t

Qua

rterly

re

porti

ng to

th

ird p

arty

fu

nder

s

Fund

M

anag

emen

t R

epor

ts

Por

tfolio

Man

agem

ent

Rep

ort n

ot la

ter t

han

1 m

onth

afte

r qua

rter e

nd

Rep

ort n

ot la

ter t

han

1 m

onth

af

ter q

uarte

r end

10

0%

Targ

et a

chie

ved

A

udite

d A

nnua

l Fi

nanc

ial

Sta

tem

ents

of

SP

Vs’

un

der G

PF’

s m

anag

emen

t

Aud

it re

port

Por

tfolio

Man

agem

ent

Rep

ort n

ot la

ter t

han

6 m

onth

s af

ter y

ear e

nd

Rep

ort n

ot la

ter t

han

6 m

onth

s af

ter y

ear e

nd

New

indi

cato

r N

o tra

nsac

tion

took

pla

ce in

the

SP

V

N

umbe

r of

sign

ifica

nt

mat

ters

of

emph

asis

on

exte

rnal

au

dit

Aud

it re

port

Por

tfolio

Man

agem

ent

Not

gre

ater

than

2

Not

gre

ater

than

2

New

indi

cato

r N

o tra

nsac

tion

took

pla

ce in

the

SP

V

5. E

nsur

e a

high

pe

rform

ing

and

valu

es-

driv

en

orga

nisa

tion

5.1.

To

attra

ct a

nd

reta

in h

ighl

y sk

illed

and

perfo

rmin

g in

divi

dual

s

Attr

act a

nd

reta

in h

ighl

y sk

illed

indi

vidu

al

Sta

ff tu

rnov

er ra

te

HR

RC

Rep

ort

HR

N

ot g

reat

er th

an3%

N

ot g

reat

er th

an3%

0

Targ

et E

xcee

ded.

Vac

ancy

ra

te

HR

RC

Rep

ort

HR

N

ot g

reat

er th

an 2

%

Not

gre

ater

than

2%

3%

A

ppro

val o

f the

new

stru

ctur

e

P

erce

ntag

e w

oman

in

seni

or

man

agem

ent p

ositi

ons

HR

RC

Rep

ort

HR

40

%

40%

67

%

Targ

et e

xcee

ded

N

umbe

r of

pers

ons

with

di

sabi

litie

s in

th

e em

ploy

men

t of

the

GPF

HR

RC

Rep

ort

HR

1

1 0

We

coul

d no

t fin

d su

itabl

e ca

ndid

ates

livi

ng w

ith d

isab

ility


30


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

5.2.

To

ensu

re

effe

ctiv

e pe

rform

ance

m

anag

emen

t, re

war

d an

d re

cogn

ition

, and

th

e de

mon

stra

tion

of

shar

ed v

alue

s

Impr

ovem

ent i

n G

PF

perfo

rman

ce

ratin

g

Impr

ovem

ent i

n G

PF

perfo

rman

ce

ratin

g

Boa

rd

Per

form

ance

E

valu

atio

n R

epor

t

HR

10

0%

100%

To

be

look

ed a

t afte

r the

ex

tern

al a

udit

To b

e lo

oked

at a

fter t

he e

xter

nal

audi

t

5.3.

To

ensu

re

effe

ctiv

e an

d re

leva

nt

train

ing

and

up-s

killin

g of

GP

F st

aff

Ens

ure

effe

ctiv

e tra

inin

g P

erce

ntag

e of

trai

ning

pl

an

impl

emen

ted

as p

er

appr

oved

an

nual

tra

inin

g pl

an

and

alig

ned

budg

et

Trai

ning

Pla

n H

R

80%

of p

lann

ed in

itiat

ives

80

% o

f pla

nned

initi

ativ

es

30%

Tr

aini

ngs

to b

e ro

lled

over

to th

e 20

17/1

8 FY

5.4.

To

enha

nce

empl

oyee

wel

lnes

s an

d w

orkp

lace

im

prov

emen

t ini

tiativ

es

Mai

ntai

n st

aff

satis

fact

ion

Mai

ntai

n a

staf

f sa

tisfa

ctio

n in

dex

bette

r th

an in

dust

ry

stan

dard

(>

or=3

)

Sta

ff S

atis

fact

ion

Sur

vey

repo

rt H

R

Gre

ater

than

3.5

G

reat

er th

an 3

.5

58%

A

n ac

tion

plan

has

dev

elop

ed to

ad

dres

s is

sues

rais

ed in

the

surv

ey.

6. A

wel

l go

vern

ed,

com

plia

nt

and

inte

grat

ed

orga

nisa

tion

6.1

. To

ens

ure

effe

ctiv

e co

ntra

ct

man

agem

ent

P

erce

ntag

e of

act

ive

loan

ag

reem

ents

co

nclu

ded

in

curr

ent

finan

cial

ye

ar th

at

have

ex

ecut

able

te

rms)

Cen

tral M

atte

r In

dex,

Sec

uriti

es

Rep

ort a

nd

Aud

itor G

ener

al

Rep

ort

Lega

l 10

0%

100%

10

0%

Targ

et m

et

Mon

thly

up

date

d co

ntra

cts

regi

ster

Cen

tral M

atte

r In

dex,

Sec

uriti

es

Rep

ort a

nd

Aud

itor G

ener

al

Rep

ort

Lega

l 12

12

12

Ta

rget

met

6.2.

To

ensu

re a

wel

l-m

anag

ed a

nd

effe

ctiv

e go

vern

ance

an

d co

mpl

ianc

e en

viro

nmen

t

Wel

l man

aged

an

d ef

fect

ive

gove

rnan

ce

Num

ber o

f si

gnifi

cant

m

atte

rs o

f em

phas

is o

n ex

tern

al

audi

t rep

ort

rela

ting

to

non-

finan

cial

pe

rform

ance

of

the

GPF

Aud

itor G

ener

al

Rep

ort

All

<2

<2

0 Ta

rget

met

.

6.3.

To

enha

nce

the

man

agem

ent o

f E

nhan

ce

man

agem

ent o

f Q

uarte

rly

repo

rts o

n th

e

Qua

rterly

Fra

ud

and

Ris

k re

port

to

Aud

it &

Ris

k

Lega

l and

Com

plia

nce

4 4

4 re

ports

sub

mitt

ed

Targ

et m

et


31


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

ente

rpris

e-ris

k.

ente

rpris

e ris

k ef

fect

iven

ess

of th

e im

plem

enta

tion

of

cont

rols

as

per

appr

oved

an

nual

risk

re

gist

er a

nd

miti

gatio

n pl

an

Com

mitt

ee &

B

oard

and

Inte

rnal

A

udito

rs’ R

epor

t

6.4.

To

enha

nce

ICT

man

agem

ent a

nd

syst

ems

inte

grat

ion

and

avai

labi

lity

Enh

ance

ICT

man

agem

ent

and

syst

ems

inte

grat

ion

Per

cent

age

avai

labi

lity

of

ICT

syst

ems

(upt

ime)

Ser

vice

Pro

vide

r/ S

yste

m

man

agem

ent

repo

rts

Fina

nce

95%

95

%

2

99.6

%

Targ

et e

xcee

ded

Per

cent

age

of IC

T M

aste

rpla

n (in

clud

ing

ER

P

inte

grat

ion,

M

IS a

nd

KM

) im

plem

ente

d as

per

ap

prov

ed

annu

al IC

T M

aste

rpla

n an

d al

igne

d bu

dget

Mile

ston

es

achi

eved

aga

inst

ap

prov

ed IC

T M

aste

rpla

n

Fina

nce

10

0% o

f pla

nned

ini

tiativ

es

impl

emen

ted

App

rova

l of 2

016/

17 IC

T M

aste

rpla

n

100%

Ta

rget

ach

ieve

d. P

roje

ct g

oing

into

se

cond

pha

se –

han

dhol

ding

and

su

ppor

t.

6.5

To

ensu

re a

wel

l-m

anag

ed a

nd

effe

ctiv

e su

pply

cha

in

envi

ronm

ent

Ens

ure

a w

ell-

man

aged

sup

ply

chai

n en

viro

nmen

t

Num

ber o

f si

gnifi

cant

m

atte

rs fr

om

exte

rnal

aud

it m

anag

emen

t re

port

Aud

itor G

ener

al

Rep

ort

Ach

ieve

men

t of

GP

G T

arge

ts

1. 8

0% T

otal

pr

ocur

emen

t fro

m

BB

BE

E

ente

rpris

es (H

DI)

, 2. 3

0% o

n sm

all

BB

BE

E

ente

rpris

es

(EM

E);

3. 3

0% O

N

BLA

CK

WO

ME

N

OW

NE

D

EN

TER

PR

ISE

S;

4. 1

0% Y

outh

, 5.

5% P

wD

;

6. 1

2% T

owns

hip

base

d ec

onom

ies,

7. S

MM

Es/

Co-

ops

pay

men

t

Fina

nce

1 1

1.

80

% T

otal

pro

cure

men

t fro

m B

BB

EE

ent

erpr

ises

(H

DI)

– 81

.49%

targ

et

exce

eded

. 2.

30

% o

n sm

all B

BB

EE

en

terp

rises

(EM

E);

- 81

.49

Targ

et e

xcee

ded.

3.

30

% O

N B

LAC

K W

OM

EN

O

WN

ED

EN

TER

PR

ISE

S;

- 22.

62%

Tar

get n

ot m

et

4.

10%

You

th –

9.0

4%

Targ

et n

ot m

et.

5.

5% P

wD

– 0

.1%

Tar

get

not m

et.

6.

12%

Tow

nshi

p ba

sed

econ

omie

s –

4.03

%

Targ

et n

ot m

et.

7.

SM

ME

s/ C

o-op

s

paym

ent w

ithin

14

days

- 3-

5 da

ys –

targ

et

exce

eded

.

SCM

cha

lleng

e: –

The

chal

leng

es w

e m

et w

ere

unde

r th

e fo

llow

ing

area

s fo

r tar

gete

d pr

ocur

emen

t of g

oods

and

ser

vice

s:

30

% o

n bl

ack

wom

en o

wne

d en

terp

rises

– s

tead

y bu

t im

prov

emen

ts re

quire

d (la

ck o

f w

omen

pro

fess

iona

l ser

vice

pr

ovid

ers

for c

omm

odity

ca

tego

ries)

10

% Y

outh

– l

ack

of w

omen

pr

ofes

sion

al s

ervi

ce p

rovi

ders

fo

r com

mod

ity c

ateg

orie

s;

5%

Peo

ple

with

Dis

abilit

ies;

The

abov

emen

tione

d ca

tego

ries

coul

d no

t be

achi

eved

due

to th

e na

ture

of t

he s

peci

alis

ed s

kills

that

is

requ

ired.

Im

prov

emen

ts w

ere


32


GP

F

ST

RA

TE

GIC

GO

AL

GP

F S

TR

AT

EG

IC

OB

JEC

TIV

E

2017

Ou

tco

me

/ M

easu

rab

le

Ob

ject

ive

Per

form

anc

e M

easu

re /

Ind

icat

or

Mea

ns

of

Ver

ific

atio

n

Rep

ort

ed o

n b

y w

hic

h U

nit

20

16/1

7Tar

get

Rev

ised

Tar

get

s

Mid

-ter

m 2

016/

17

Act

ua

l A

nn

ual

P

erfo

rman

ce

Rea

son

s fo

r va

rian

ces

with

in 1

4 da

ys

chal

leng

ing

espe

cial

ly g

iven

pr

ocur

emen

t of p

rofe

ssio

nal

serv

ices

. G

PF

is a

ggre

ssiv

ely

targ

etin

g ca

tego

ries

not m

et b

y us

ing

targ

eted

pro

cure

men

t. W

e w

ere

advi

sed

that

SA

P

Impl

emen

tatio

n -G

aute

ng T

reas

ury

is o

nly

sche

dule

d fo

r mid

-May

201

7.

The

data

base

of c

ateg

oris

ed

BB

BE

E s

uppl

iers

for G

aute

ng is

av

aila

ble

on S

AP

that

will

ass

ist t

o re

med

y th

e si

tuat

ion.

We

met

with

G

EP

ear

lier –

they

adv

ised

are

als

o st

rugg

ling

with

the

sam

e ca

tego

ries,

w

e ar

e sc

hedu

led

to m

eet N

YDA

by

10th

Apr

il 20

17.

Miti

gant

:

In th

e m

eant

ime

GPF

stri

ves

to

obta

in c

ateg

oris

ed s

uppl

iers

“m

anua

lly” f

rom

oth

er

entit

ies/

depa

rtmen

ts s

uch

as G

IFA

, G

DE

etc

.

and

is a

wai

ting

acce

ss to

the

GP

G

data

base

that

is a

lread

y “lo

aded

” on

CS

D.

AP

PR

OV

ED

:

……

……

……

……

……

……

……

……

……

……

……

….

Bo

ni M

uve

vi

Chi

ef E

xecu

tive

Offi

cer

Dat

e: …

……

……

……

……

……

……

……

……

……

…


33


Hla

ng

anan

i


34


Performance OverviewTable A - Summary of performance

Measure Actual (FY ‘16/17)Original Target(FY 16/17)

Revised Target(FY 16/17)

Comments

Applications recorded

R556m -Applications received were mainly from the rental and social housing fund

Projects Expression of Interest (EOI)

R303m -

Projects for which expressions of interest were issued were negatively affected by the availability of senior funding

Rental Housing Fund (RHF)

R35,4m R96,7m R48,3mDeal flow within this fund was affected by lack of competitive senior funders within the sector

Entrepreneur Empowerment Property Fund (EEPF)

R83m R71,5m R35,8mTarget was exceeded by 33% as some of the projects were funded 100% by the GPF

Student Accommodation Fund (SAF)

R47,6m R43,8m R21,9m Target was exceeded by 18%

Social Housing Fund (SHF)

R50m R217,6m R108,8

Funding approvals were negatively affected by the unavailability of institutional subsidies despite social housing projects approval by the Social Housing Regulatory Authority (SHRA)


35


Table B - List of projects cancelled in the 2016/2017 financial year.

Name of company Property descriptionLoan amount

Number of units

Reason for cancellation

Sunnilaws Properties (Pty) Ltd (approved in Nov 2015)

Glen Marais -remaining Ext of Portion 3 of Holding 274

R19,5m 137 Failure to comply with GPF conditions

Mookehla Trading 001 (Pty) Ltd

Erf 88, Spartan Ext 26 R5,1 m 34Inability to raise the equity, loan agreement expired

Landopoint (Pty) LtdERF 905, 906 and 907 Kenilworth

R4,5 m 30 Due to breach of the loan agreement

Unires Project 1 (Pty) Ltd

Erven 885 to 889 & 896 to 900 New Doornfontein

R28,6 m301 units

(547 beds)

Strategic partner withdrew from the Joint Venture

Total R57,7m 502

In the second half of the year the GPF’s strategic focus expanded to include the implementation of Mega projects. GPF has become the enabler and facilitator for Gauteng’s delivery model of Mega projects. Key Components of Mega Projects include:

√ Basic service provision in informal settlements;

√ Projects with mixed housing typologies and high densities;

√ Green economy and energy efficiency in houses;

√ Well located developments along integrated transport routes; and

√ Provision of integrated primary bulk and secondary infrastructure.

To this effect, the GPF has concluded an implementation protocol with the GDHS wherein the GPF will coordinate, package, implement and raise funding for Mega projects.

Notwithstanding the above, the delivery of affordable rental accommodation and leveraging of private sector investment continued to be the focus area for the GPF:

We received and evaluated project funding applications to the value of approximately R556m;


36


Of the funding applications received, the GPF issued expressions of interest in projects to the tune of R303m, and obtained Board approval for approximately R216m worth of projects against the revised annual target of R215m for all targeted programmes. The annual targets were slightly exceeded, by approx. 0.6%. The year-on-year increase amounted to R21m, representing an 11% increase. Despite relatively low deal flow, the EEPF as well as the SHF were the main drivers to the overall of funding committed to projects. We have facilitated and approved the provision of 1 493 affordable rental units, 659 student accommodation beds and completed the construction of 1 462 affordable rental units.

The GPF 2016/17 funding performance is summarised in Graphs A and B below

Graph A – Summary of Performance (Rand millions)

Graph B – GPF Committed Funds vs Leveraged Funds (Rand millions)

The GPF has leveraged R417m, of which R211m represents grant funding and R206m represents private sector funding, thereby facilitating 1 493 affordable rental units and 659 student accommodation beds. Of the total of R634m of projects’ funding committed, GPF has contributed 34%.


37


Product Performance Review Despite the relatively tough economic environment the rental property sector benefitted from the rise in interest rates in the first quarter of the year, as rental became a financially viable option for most households. The demand for GPF funding was however negatively impacted, among other things, by GPF funding constraints, unavailability of institutional subsidies for Social Housing Projects, and a lack of senior funding. Annual targets have been exceeded in the EEPF and SAHF portfolios. The GPF’s funding commitment under the portfolios represented 38% and 22% respectively.

Table C - Commitment Value

Product Original Target Revised Target ActualPercentage of commitments

Rental Housing Fund (RHF) R96 700 000 R48 300 000 R35 431 104 16%

Social Housing Fund (SHF) R217 600 000 R108 800 000 R50 000 000 23%

Entrepreneur Empowerment Fund (EEPF) R71 500 000 R35 800 000 R83 030 573 38%

Student Accommodation Fund (SAF) R43 800 000 R21 900 000 R47 678 026 22%

Total R429 600 000 R214 800 000 R216 139 703

Table D – Product Performance 2016 – 2017

Key Performance Areas (Programmes)

Goal OutputOriginal Target2016/2017

Revised Target2016/2017

Actual Performance2016/2017

Reasons for Variance

Rental Housing Fund (focused on for-profit entities)

Enhanced debt-to-equity ratio for companies in projects in order to leverage commercial funding

Committed Value

R96,7m R48,3m R35,4m

Target not met due to lack of competitive senior funders within the sector. GPF can only commit funding to projects that have support from Senior funders. Refer toNote 1 for list of projects approved.

Number of facilitated units

800 400 323


38







Social Housing Fund (focused on non-profit entities)

To reduce cost to capital on projects linked to Institutional subsidies

Committed Value.

R217,6m R108,8m R50m

Funding approvals negatively affected by unavailability of institutional subsidies despite SHRA approval. Refer toNote 2 for list of projects approved.

Number of units facilitated

2 000 1 000 870

Entrepreneur Empowerment Property Fund (EEPF)

This is an incubator programme designed to promote participation of HDI-owned companies in the affordable rental property market. (The programme is limited to prospective participants invited on public tender annually)

Committed Value

R71,5mR35,8m R83m

Target has been exceeded. Refer toNote 3 for list of projects approved.

Number of facilitated units

444 222 300

Student Accommodation

Leverage funding for affordable student accommodation.

Committed Value

R43,8m R21,9m R47,7m

Target has been exceeded. Refer to Note 4 for list of projects approved.

Number of Beds facilitated

650 325 659


39







Affordable Housing Units delivered on time and to the right level of quality

Percentage of completed projects within the current financial year with occupational certificates issued

100% 70% 90%

Target exceeded. 1 462 units completed of which 150 await municipal inspections in order to obtain occupational certificates. Refer toNote 5.

Percentage of projects that are under construction enrolled with NHBRC

100% 100% 99%Target not met. Refer to Note 6

Number of affordable Housing Units completed p.a (total of all products)

1 200 1 200 1 462Target exceeded. Refer toNote 5

To implement projects arising from MoU’s with province and local government

Affordable housing delivered in support of government programmes of spatial transformation, sustainability and inclusivity.

Number of new MoU’s signed and projects initiated in partnership with municipalities

1 project initiated and one MoU signed

1 project initiated

No projects initiated under the existing MoU’s with the metros.

Target not met. Refer toNote 7


40







Affordable Housing delivered in support of government programme of spatial transformation, sustainability and inclusivity

Support the implementation of GDHS Mega projects

Desktop evaluation and assessment of two Mega projects for investment facilitation and capital flows

Desktop evaluation and facilitation of two Mega projects

Desktop evaluation and facilitation of two Mega projects

Desktop evaluation

and facilitation

undertaken for 8 Mega

projects.

Target exceeded. Refer toNote 8

GDHS Subsidies committed

R500m R500m 0 Target not Met refer to Note 9

Number of units facilitated

4 545 4 5450

Target not Met refer to Note 9

Number of units completed

2 273 2 273 0Target not met refer to Note 9

Note 1.

The Rental Housing Fund

The fund enhances the debt-to-equity ratio for companies in projects in order to leverage commercial funding.


41


Table E - List of approved projects under the Rental Housing Fund

Name of Company Project NameNo of units

GPF Funding commitment

Meilijian Development and Construction cc

Erf 3579, Pomona Ext 75 22 R1 060 544

Bruzar Property Development and Investment (Pty) Ltd

Erf 630, Rhodesfield 7 R3 791 328

Masakhe Apartments (Pty) LtdErf 416, Linden, Extension 55, Randburg

69 R9 109 712

Bridge City Housing Consortium (Pty) Ltd

Portion 196 of Erf 7305 Chiawelo Extension 2, Soweto

132 R11 060 972

Egon House (Pty) Ltd Erf 1171, Johannesburg 70 R5 410 465

EGC Properties (Pty) Ltd Erf 101, Wolhuter Jeppestown 23 R4 998 084

Total 323 R35 431 105

Note 2.

Social Housing Fund (SHF)

The fund reduces cost-to-capital on projects linked to Institutional subsidies

Table F - List of approved projects under the SHF



Klatrade 723 (Pty)Ltd Erf 8341&8342 Devland Ext 36 870 R50,000,000

Total 870 R50, 000,000

Note 3

The Entrepreneur Empowerment Property Fund (EEPF)

This is an incubator programme designed to promote participation of HDI owned companies in the affordable rental property market. (The programme is limited to prospective participants invited on public tender annually). There was no new in-take in for the period under review.

Table G- List of Approved Projects under the EEPF Fund



Zwide & Dewa Investments (Pty) LtdErf 424 & 425 Rhodesfield, Kempton Park

0 R606 213

MSX Properties 001 (Pty) Ltd Erven 2546, 2547, 2548, 2549 & 2550 Fleurhof Ext 28, Roodepoort

112 R20 553 100


42




Fundzo Trading (Pty) Ltd Portion 15 (A Portion of Portion 14) of ERF 8489 Protea Glen Extension 11

0 R16 520 500

Nonkwelo Investments (Pty) Ltd ERF 66, Portion 0 Highlands 45 R25 022 360

Hectorfield (Pty) Ltd Erf 644 Pretoria North 34 R6 268 900

Seraph Investments (Makabongwe) Erf 488 to 491 new Doornfontein 109 R14 059 500

Total 300 R83 030 573

Note 4.

The Student Accommodation Fund

The fund enhances the debt-to-equity ratio for companies in projects in order to provide affordable and good quality of living to the students.

Table H - List of approved projects under the Student Accommodation Fund

Name of Company Project Name No of Beds GPF Funding commitment

Lavigen Lofts (Pty) Ltd Bedworth Park 116 R3 124 009

Watershed Properties (Pty) Ltd Monash Student Accommodation 543 R44 554 017

Total 659 R47 678 026

Note 5.

As at 31 March 2016, there were 15 projects completed with a total of 1 462 units of which 150 units await municipal inspections in order to obtain occupational certificates.

Table I - List of completed Projects

1 462 units are completed of which 150 units are awaiting municipal inspections in order to obtain occupational certificates.


43


Rental and EEPF Projects

NoName of Institution

Project Name LocationNo of Units

Comments

1Indigo Kulani Properties (Pty) Ltd

Erf 1676 Benoni Benoni 24 Received occupational certificates

2Bua Afrika Properties (Pty) Ltd

ERF 2918 Kempton Park

Kempton Park 240 Received occupational certificates

3GNI Real Estate (Pty) Ltd

Erf 113 Pretoria North

Pretoria 27 Received occupational certificates

4EGC Properties cc

9 Browning Street Erven 103, 104 & 105

Johannesburg CBD 53 Received occupational certificates

5Mahlahla Advancement Dynamics cc

Erf 442 Wolmer Extension 1

Pretoria 38 Received occupational certificates

6

Goldburg Properties Development (Pty) Ltd

52 North Rand, Kempton Park

Kempton Park 32 Received occupational certificates

7Ace Pallets (Pty) Ltd

Hertz Rd Vanderbijlpark 84 Received occupational certificates

8 Kesef Properties Busby House Johannesburg CBD 374 Received occupational certificates

9

Makabongwe Property Holdings (Pty) Ltd

Beverley Towers - cnr Kerk and End Street

Johannesburg CBD 64 Received practical completion

10SOA Residential Village (Pty) Ltd

Erf 1532 Selcourt, Springs

Selcourt, Springs 56 Received practical completion

11Take Shape Properties 75 cc

Erf 4510 Johannesburg

Johannesburg CBD 101 Received occupational certificates

12Clare Water (Pty) Ltd

Erf 1509, Ext 7 Discovery Roodepoort

Roodepoort 30 Received practical completion

13NBLR Properties (Pty) Ltd

Erf 2551, Erf 2552 and Erf 2553

Fleurhof 76 Received occupational certificates

Total 1 199


44


Student Accommodation Fund

No Name of Institution Project Name LocationNo of Beds

No of Units

Comments

1 Erf 85 Newton CC Erf 269 Richmond Johannesburg 76 22Received occupational certificates

76 22

Social Housing Fund

No Name of Institution Project Name Location No of Units Comments

1 Yeast City Housing Thembelihle Village Pretoria 241 Received occupational certificates

Total 241

Note 6

As at the 31 March 2017, there were 21 projects under construction with a total of 1 779 units of which two projects with a total yield of 230 units do not require NHBRC enrolment. Out of 1 549 units that require NHBRC registration, four are not registered. Therefore we are 99% compliant.

Table J- List of projects under construction

No Name of company Project NameNo of Units

NHBRC Registered Yes/No

1 Yeast City Housing Thembelihle Village 492 Yes

2 Norvena Property Consortium Norvena 173 *n/a

3 Echo Canyon Trading (Pty) Ltd 463 and 465 Hanny Street 84Yes

4Indigo Kulani Properties (Pty) Ltd

Erf 1673 Benoni, Ekurhuleni Municipality 36 Yes

5Inkamvelihle Trading Enterprise cc

Erf 953-956 Berea 38 Yes

6Michaelson Investments (Pty) Ltd

Erf 658 Troyeville 16 Yes

7Tumaini Properties and Real Estates cc

Erf 53 & 52 Doornfontein 32 Yes

8Shukumani Trading Enterprise (Pty) Ltd

Erf 550 Bertrams, Johannesburg 32 Yes


45


No Name of company Project NameNo of Units

NHBRC Registered Yes/No

9 Nokwelo Investments (Pty) Ltd Erf 10 & 11 Hunter Street 45 Yes

10 Fundzo Trading (Pty) Ltd Portion 15 of Erf 8489 Pretoria North 62 Yes

11 Bixowize cc /Kingdom PropertyErf 278 Primrose Hill, Ekurhuleni Metro Municipality

30 Yes

12Simelane Business Solutions (Pty) Ltd

Erf 2682 and Portion 3 of Erf 2682 Kempton Park

50 Yes

13 Phahamo Resources (Pty) Ltd Erf 8292 Olievenhoutbosch Ext 36 88 Yes

14Redformationz Holding (Pty) Ltd

Birchwood – Kempton Park 84 Yes

15 Property Kalcha (Pty) LtdPortion 1 & 2 of Erf 1871 Albertville, Randburg

15 Yes

16 FV Trading Enterprise (Pty) Ltd Duncanville 24 Yes

17 Proxisol (Pty) Ltd Bertrams Mews 57 *n/a

18 Sam Lubbe Investments CC Erf 1654 Germiston 66 Yes

19Meilijian Construction and Development cc

Pomona 118 Yes

20Hoewe 15 Doreg Landbouhoewes (Pty) Ltd

Ervens 1499 & 1450, Karen Park Ext 52, Pretoria

176 Yes

21 Sheran Investments (Pty) Ltd Erf 73 Klippoortjie 16 Yes for 12 units

Total 1 779

*N/A NHBRC project registration not required for brownfield and student accommodation projects.

Challenges experienced during the period under review

Contractor’s late enrolment of projects with NHBRC resulted in delays of project registration as they first need to resolve or raise funding to settle the penalties.



46


Proposed solutions

1. Proactively advise clients and their contractors on the implications of late NHBRC project enrolment.

2. Incorporation of project registration requirement prior to disbursements towards construction.

Note 7

Affordable housing delivered in support of government programmes of spatial transformation, sustainability and inclusivity. The objective is to conclude MoU’s with municipalities and initiate projects in partnership with them. GPF had planned to have at least one project initiated from the MoU’s concluded with municipalities in previous years.

Target was not met. During the course of the year the GPF was in discussion with Ekurhuleni Development Company (EDC) to assist with the financial feasibility for one of their potential projects. The project stalled as the parties could not agree on the terms of the sale.

Note 8

The following are eight Mega projects for which desktop evaluation and facilitation have been concluded;

√ Nelmapius Ext 4 Mega Housing Development

√ Western Mega Housing Development

√ Witpoortjie Mega Housing Development

√ Park City Mega Housing Development

√ Leratong City Mega Housing Development

√ Varkenslaagte Mega Housing Development

√ Montrose Mega Housing Development

√ Goudrand Mega Housing Development

Note 9

Target was not achieved mainly because:

√ The implementation protocol was concluded on 25 January 2017;

√ GPF received funding allocation of R266m towards Mega projects in March 2017;

√ Projects that were included in the implementation protocol did not have agreements in place, therefore could not start construction.


47


Partnership ProgrammesIntuthuko Fund

This programme is offered through the Trust for Urban Housing Finance (TUHF). The purpose of the fund is to provide soft funding to emerging black entrepreneurs providing small-scale housing in the inner cities. There was no funding disbursed to projects under the fund in the 2016/17 financial year.

Strategy To Overcome Areas Of Under PerformanceThe strategies to overcome areas of under-performance are set out in the Annual Performance Plan.

With regard to social housing, the GPF reviewed its target due to lack of institutional subsidies, to ensure alignment with the GDHS strategy and budget requirements for institutional subsidies programmes.

The GPF also recapitalised and reviewed its targets due to receiving a smaller amount than budgeted from the GDHS.

Supply chain management continued to experience challenges in the procurement of goods and services with a breakdown of 30% on black women owned enterprises, 10% youth, 5% people with disabilities, due to the nature of GPF projects and the specialised skills required for it. GPF is working with Provincial Treasury to obtain the Gauteng Provincial Government (GPG) SAP database.

Changes to planned targets

The GPF budgeted R714.8m and only received R406m from GDHS. The amount of R140m was received in the last month of the first quarter and an amount of R266m was received late in March 2017.

Linking performance with budgets

This is covered in the Annual Performance Plan.


48


REVENUE COLLECTION

2016/17 2015/16

Sources of revenue

EstimateActual amount collected

(Over)/Under collection

EstimateActualAmount collected

(Over)/Under collection

R’000 R’000 R’000 R’000 R’000 R’000

Total (refer to note 14 in the AFS)

R48 646 070 R42 607 547

The GPF recognises revenue in respect of interest repayments on its loans. These repayments are governed by a legal agreements signed by the borrower and secured by a mortgage bond over the property. The mortgage bond is one of the security instruments that the GPF has in place to secure its loans. Due to the concessionary nature of the GPF’s loans, it has not to date budgeted for revenue in the form of loan repayments. The Monitoring and Evaluation section monitors borrowers post-construction to ensure, among others, that they service their loans.

Capital investment

2016/17 2015/16

Infrastructure projects

BudgetActual Expenditure

(Over)/Under Expenditure

Budget Actual Expenditure

(Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Property, plant and equipment (Statement of comparison of Budget and Actual Amounts)

R3 720 598 R1 228 293 R2 492 305 R753 600 R309 965 R443 635

The GPF has implemented controls of quarterly asset counts, and reviews useful lives and residual values on a quarterly basis. These controls provide assurance to the GPF that its asset register is accurate and complete. The current state of property, plant and equipment is good (refer to note 7 in the AFS).

GOVERNANCE

PART C


50


IntroductionCorporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act, corporate governance with regard to public entities is applied through the precepts of the Public Finance Management Act (PFMA) and run in tandem with the principles contained in the King’s Report on Corporate Governance.

The legal status of King IV, as with its predecessors, is that of a set of voluntary principles and leading practices. Corporate governance could apply on a statutory basis as rules, as a voluntary code of principles and practices, or as a combination of the two. Good corporate governance is paramount to the success of the GPF, and to protect and advance the interests of the country and its citizens. We believe governance helps to enhance the functioning of leadership structures of GPF and provides the arrangements by which the GPF should be governed so that it is able to meet its strategic objectives.

Parliament, the Executive and the Accounting Authority of the public entity are responsible for corporate governance.

Executive AuthorityThe Executive Authority of the GPF is the MEC. Oversight by the executive authority is guided by the prescripts of the PFMA .which governs and/or gives the Executive Authority oversight powers.

Since the GPF is incorporated as a Trust in terms of the Trust Property Control Act 57 of 1988, the GPF is also guided by the provisions of its Trust Deed.

The Executive Authority also has the power to appoint and dismiss the Board the GPF. In pursuit of good governance, when making the necessary appointments the Executive Authority must also ensure that the appropriate mix of executive and non-executive trustees is appointed and that trustees have the necessary skills to guide the GPF as a public entity.

On an annual basis the GPF provides a Strategic Plan and an Annual Performance Plan (“APP”) to the executive authority through the GDHS. Based on these plans, the GPF submits quarterly reports on its performance progress to the GDHS and the executive authority.

All requisite Quarterly Performance reports were submitted to the GDHS and the MEC.


51


The Accounting Authority / Board Introduction

The Board of Trustees is the accounting authority of the GPF.

The Board constitutes a fundamental base for the application of corporate governance principles within the GPF. As the accounting authority, the GPF Board is expected to lead ethically and effectively. Ethical and effective leadership is exemplified by integrity, competence, responsibility, accountability, fairness, and transparency.

The Board appreciates that the GPF’s core purpose, its risks and opportunities, strategy, business model, performance and sustainable development are all inseparable elements of the value creation process.

In order to ensure independent and objective decision making, the majority of the members of GPF board are non-executive.

The Board is responsible for developing and overseeing the execution and monitoring the GPF’s performance against the Strategic Plan and APP.

As such, the Board has an absolute responsibility for the performance of the GPF and is fully accountable to the GPF such for performance. The Board also give strategic direction to the GPF.

The role of the Board is as follows:

• It holds absolute responsibility for the performance of the public entity

• It retains full and effective control over the public entity

• It ensures that the public entity complies with applicable laws, regulations and government policy

• It has unrestricted access to information of the public entity

• It formulates, monitors, reviews corporate strategy, major plans of action, risk policy, annual budgets and business plans

• It ensures that the shareholders‘ performance objectives are achieved

• It manages potential conflicts of interest;

• It develops a clear definition of levels of materiality

• The Board members attend annual meetings;

• It ensures financial statements are prepared;

• The Board must appraise the performance of the Chairperson;

• It must ensure effective Board induction;

• Must maintain integrity, responsibility and accountability.


52


Board Charter

As part of its responsibility the Board ensured that its arrangements for delegation within its own structures promote independent judgement, and assist with balance of power and the effective discharge of its duties in so doing and as recommended by the King Code, the Board has a charter setting out its responsibilities, which is disclosed in its annual report.

The Board Charter is reviewed regularly.

The charter confirms (inter alia):

• The board‘s responsibility for the adoption of strategic plans,

• Monitoring of operational performance and management,

• Determination of policy processes to ensure the integrity of the GPF risk management and internal controls,

• Communication policy,

Thembelihle


53


Co

mp

osi

tio

n o

f th

e B

oar

d

Nam

e

Des

ign

atio

n

(in

ter

ms

of

the

Pu

blic

E

nti

ty B

oar

d

stru

ctu

re)

Init

ial

Dat

e o

f ap

po

intm

ent

(by

GP

F)

Dat

e o

f R

e-ap

po

intm

ent

Dat

e o

f E

xpir

atio

n

of

Term

Dat

e o

f R

esig

nat

ion

Qu

alifi

cati

on

sA

rea

of

Exp

erti

se

Oth

er

Co

mm

itte

es o

r Ta

sk T

eam

s

No

of

mee

tin

gs

atte

nd

ed

Pak

ie

Mph

ahle

leC

hairp

erso

n

01/1

2/20

08(a

s tr

uste

e)

01/0

6/20

12

(as

Cha

irper

son)

26/0

5/20

1531

/08/

2017

N/A

Mas

ters

in

Fin

anci

al

Eco

nom

ics

Mic

ro F

inan

ceB

oard

6/8

Lefa

di

Mak

ibin

yane

Tru

stee

01/0

9/20

1101

/09/

2014

31/0

8/20

1717

/10/

2016

BS

c. E

ng.

Che

mic

al (

Hon

s)M

BL

Eng

inee

ring

Inve

stm

ent

and

HR

RC

C

omm

ittee

3/5

Zol

a F

ihla

niT

rust

ee01

/09/

2011

01/0

9/20

1431

/08/

2017

17/1

0/20

16C

A (

SA

)A

ccou

ntin

g an

d B

usin

ess

deve

lopm

ent

Aud

it an

d In

vest

men

t C

omm

ittee

5/5

Din

eo

Map

hatia

neT

rust

ee01

/09/

2011

01/0

9/20

1431

/08/

2017

N/A

BA

Hum

an

Res

ourc

e M

anag

emen

t

Hum

an

Res

ourc

esA

udit

and

HR

RC

C

omm

ittee

8/8

Lavi

nia

Kha

ngal

aT

rust

ee01

/04/

2013

01/0

4/20

1631

/03/

2016

17/1

0/20

16

LLM

(M

aste

rs in

La

w)

LLB

B.P

roc

Hig

her

Dip

lom

a in

Fin

anci

al

Pla

nnin

g –

CF

P

Lega

lA

udit

and

HR

RC

C

omm

ittee

5/5

Lebo

Le

shab

ane

Tru

stee

01/0

4/20

1301

/04/

2016

31/0

3/20

1617

/10/

2016

BS

c. E

ng. C

ivil

(Hon

s)

Bus

. M

anag

emen

tG

DE

Civ

il (P

roj.

Man

. P

rope

rty

Law

, G

eote

chni

cal

Eng

inee

ring,

M

aint

enan

ce

Eng

inee

ring

Eng

inee

ring

and

Man

agem

ent

Inve

stm

ent

Com

mitt

ee4/

5


54


Nam

e

Des

ign

atio

n

(in

ter

ms

of

the

Pu

blic

E

nti

ty B

oar

d

stru

ctu

re)

Init

ial

Dat

e o

f ap

po

intm

ent

(by

GP

F)

Dat

e o

f R

e-ap

po

intm

ent

Dat

e o

f E

xpir

atio

n

of

Term

Dat

e o

f R

esig

nat

ion

Qu

alifi

cati

on

sA

rea

of

Exp

erti

se

Oth

er

Co

mm

itte

es o

r Ta

sk T

eam

s

No

of

mee

tin

gs

atte

nd

ed

Siy

abon

ga

Mba

njw

aT

rust

ee01

/04/

2013

01/0

4/20

1631

/03/

2016

17/1

0/20

16M

BA

Mas

ters

of

Sci

ence

Bus

ines

s an

d C

onst

ruct

ion

Inve

stm

ent

Com

mitt

ee4/

5

Bon

i Muv

evi

Tru

stee

/C

EO

01/0

3/20

14N

/A28

/02/

2019

N/A

MB

A (

Gib

s)D

iplo

ma

in P

roje

ct

Man

agem

ent

BS

c (Q

uant

ity

Sur

veyo

r)

Bus

ines

s an

d C

onst

ruct

ion

CE

OIn

vest

men

t C

omm

ittee

8/8

Una

thi

Ndo

beni

GD

HS

/T

rust

ee26

/05/

2015

N/A

25

/05/

2018

17/1

0/20

16B

Com

A

ccou

ntin

g H

onou

rs/C

IMA

Hou

sing

and

F

inan

ceB

oard

0/5

Lind

iwe

Mth

imun

ye

Bak

oro

Cha

irper

son

17/1

0/20

16N

/AN

/AN

/A

CA

(S

A)

MC

om (

UC

T),

20

10P

ost G

radu

ate

Dip

lom

a in

Tax

La

w (

Wits

) 19

98P

ost G

radu

ate

Dip

lom

a in

A

ccou

ntin

g (U

CT

), 1

995

BC

om, U

CT,

19

94

Str

ateg

y/H

ousi

ng a

nd

Fin

ance

Boa

rdIn

vest

men

t C

omm

ittee

Fun

ding

C

omm

ittee

3/3

Nko

mot

ana

Clif

ford

M

otse

pe

Dep

uty

Cha

irper

son

17/1

0/20

16N

/AN

/AN

/A

BP

roc

(Uni

vers

ity

of L

impo

po)

LLB

(U

nive

rsity

of

Lim

popo

)

Lega

l

Inve

stm

ent

Com

mitt

eeH

RR

C

Com

mitt

eeB

oard

2/3

Mam

orok

e Le

hoby

eT

rust

ee17

/10/

2016

N/A

N/A

N/A

BC

om (

UC

T)

HD

ip A

cc (

Wits

)C

A (

SA

)

Hou

sing

and

F

inan

ce

Aud

it an

d R

isk

Com

mitt

eeB

oard

3/3


55


Nam

e

Des

ign

atio

n

(in

ter

ms

of

the

Pu

blic

E

nti

ty B

oar

d

stru

ctu

re)

Init

ial

Dat

e o

f ap

po

intm

ent

(by

GP

F)

Dat

e o

f R

e-ap

po

intm

ent

Dat

e o

f E

xpir

atio

n

of

Term

Dat

e o

f R

esig

nat

ion

Qu

alifi

cati

on

sA

rea

of

Exp

erti

se

Oth

er

Co

mm

itte

es o

r Ta

sk T

eam

s

No

of

mee

tin

gs

atte

nd

ed

Tim

othy

M

andl

a S

ukaz

iT

rust

ee17

/10/

2016

N/A

N/A

N/A

BP

roc

(Uni

sa)

Cer

tifica

te in

P

ract

ical

Leg

al

Tra

inin

g (U

CT

)LL

B (

Uni

sa)

LLM

(U

CT

)

Lega

l

Fun

ding

C

omm

ittee

Aud

it an

d R

isk

Com

mitt

ee

Boa

rd

3/3

Rac

hel

Kal

idas

sT

rust

ee17

/10/

2016

N/A

N/A

N/A

BC

ompt

(U

nisa

),

CTA

(U

nive

rsity

of

Nat

al)

BC

om (

Hon

s)

(Uni

vers

ity o

f N

atal

) C

A (

SA

)

Hou

sing

and

F

inan

ce

Aud

it an

d R

isk

Com

mitt

eeB

oard

1/3

Bus

isiw

e N

zoT

rust

ee17

/10/

2016

N/A

N/A

N/A

BS

c (Q

S)

Hon

s (N

MM

U),

P

rope

rty

Dev

elop

men

t P

rogr

amm

e (U

CT

); P

rQs

Bus

ines

s an

d C

onst

ruct

ion

Inve

stm

ent

Com

mitt

ee

Boa

rd2/

3

Eno

ch

Bhe

kifa

K

ubek

a

GD

HS

/T

rust

ee17

/10/

2016

N/A

N/A

N/A

TB

AH

ousi

ng a

nd

Fin

ance

Boa

rd2/

3

Dur

ing

the

year

und

er r

evie

w, t

he E

xecu

tive

Aut

horit

y re

stru

ctur

ed th

e G

PF

boa

rd o

f Tru

stee

s w

ith s

ome

trus

tees

re

mov

ed fr

om th

e bo

ard

and

new

trus

tees

bei

ng a

ppoi

nted

.

A D

eput

y C

hairp

erso

n of

the

GP

F h

as a

lso

been

app

oint

ed

Det

ails

are

as

refle

cted

abo

ve.


56


Committee No. of meetings held No. of members Name of members

Audit and Risk Committee 6 4

Mamoroke Lehobye (Chariperson)Rachell KalidassTimothy SukaziDineo Maphatiane

Investment Committee 6 5

Clifford Motsepe (Chariperson)Lindiwe BakoroBusisiwe NzoPakie MphahleleBoni Muvevi

Human Resources and Remuneration Committee

6 3

Dineo Maphatiane (Chariperson)Pakie MphahleleClifford Motsepe

Funding Committee 3 4

Timothy SukaziLindiwe BakoroMamoroke LehobyeBoni Muvevi

Remuneration of Board members

Board members are remunerated a board stipend calculated at SAICA rates

All non-executive and independent trustees are paid a board stipend.

Non executive and non independent trustees being, Enoch Kubeka and Unathi Ndobeni are deemed to be public officials and are therefore not paid a board stipend.

The CEO is an executive trustee employed by the GPF and is paid salary. As such the CEO does not receive a board stipend.

All travelling expenses relating to trustees for official GPF work is paid by GPF.


57


Name Remuneration Other allowanceOther re-imbursements

Total

Dineo Maphatiane 361 865.20 361 865.20

Lefadi Makibinyane 134 509.05 134 509.05

Zola Fihlani 261 761.15 261 761.15

Pakie Mphahlele 304 031.25 304 031.25

Siyabonga Mbanjwa 172 428.70 172 428.70

Molebogeng Leshabane

162 078.00 162 078.00

Lavinia Khangala 232 228.00 232 228.00

Lindiwe Bakoro 243 981.44 243 981.44

Clifford Motsepe 121 920.70 121 920.70

Busisiwe Nzo 72 956.00 72 956.00

Mamoroke Lehobye 131 461.10 131 461.10

Rachel Kalidass 57 523.00 57 523.00

Timothy Sukazi 139 668.65 139 668.65

Total 2 396 412.24

Risk ManagementRisk management is fundamental to organisational control and a critical part of providing sound corporate governance. It touches all of the organisation’s activities. The establishment of an effective enterprise-wide risk management system is a key responsibility of management and the Board, who together are responsible for adopting a holistic approach to the identification of organisational risks, creating controls to mitigate those risks, and monitoring and reviewing the identified risks and controls. They should ensure that risk management is integrated into the organisation, both at the strategic and operational levels.

For GPF, risk management involves achieving an appropriate balance between realising opportunities while minimising adverse impacts. For this reason, GPF has a risk management policy and methodology in place, which explains its approach to risk handling.

The Board delegated to management the responsibility to design, implement and monitor the risk management plan. The Board, through the Audit and Risk Committee, ensures that risk assessments are performed and reported on a continuous basis, and that there is continual risk monitoring.

Risks are continually being identified and mitigated by allocating responsibility, developing action plans, and monitoring compliance with these action plans. All these risks are monitored and reported upon at Exco meetings and in the Audit and Risk Committee.


58


Internal Control UnitGPF outsources its Internal Audit function. The Internal Auditors have unrestricted access to the chairman. Members of the Audit and Risk Committee, however, report administratively to the Chief Financial Officer. To ensure the independence of Internal Audit, the Internal Auditors report functionally to the Audit and Risk Committee. The team comprises qualified and experienced personnel to ensure the delivery of relevant and high-quality risk-based control services.

Internal Audit And Audit And Risk CommitteesThe internal audit follows a risk-based audit methodology, which is updated annually. The annual internal audit plan is determined after consideration and assessment of all risks facing the GPF, including coverage of significant operating segments. The internal audit reviews the ICT general and application controls of GPF to ensure satisfactory ICT governance and assurance.

The key duties of the internal audit function include:

• Preparing a flexible three-year, rolling risk-based strategic internal audit coverage plan;

• Preparing a flexible annual risk-based internal audit coverage plan for the first year of the rolling three-year strategic plan;

• Preparing plans indicating the proposed scope of each audit project in the annual internal audit coverage plan;

• Evaluating the company’s governance processes;

• Performing an objective assessment of the effectiveness;

• Systematically analysing and evaluating;

• Processes and associated controls.

The following internal audit work was completed during the year under review by internal audit:

• Projects review;

• Performance Information;

• Fiscal review;

• Financial Management review;

• Post Implementation review;

• Governance, Legal and Compliance;

• Human Resources review;

• Information Technology Governance Review

• Corporate Form Change review;

• DTI Verification review;


59


• Supply Chain Management review; and

• Annual Financial Statement review.

Furthermore, Internal Audit performed ad hoc reviews at management’s request and as approved by the Audit and Risk Committee. The ad hoc reviews performed were:

• Procurement Oversight reviews (6 altogether);

• Performance Evaluation review for staff (review of management’s assessment);

• Asset Bidding review.

The objectives of the Audit and Risk Committee are to monitor and evaluate the audit risk and the maintenance of internal controls within GPF and to provide support to the Board of Trustees and management generally in discharging their responsibilities in this regard.

This objective acknowledges that the Board of Trustees is ultimately responsible for the management of audit risk and the maintenance of internal controls which are designed to provide reasonable assurance of the integrity and reliability of financial reporting, the effectiveness and efficiency of operations and compliance with applicable laws and mandates.

The Audit and Risk Committee will ensure the internal audit function provides a written assessment of the effectiveness of the company’s system of internal controls and risk management.


60


The table below discloses relevant information on the Audit and Risk Committee members.

Name QualificationsInternal or external

If internal, position in the public entity

Date appointed

Date Resigned

No. of Meetings attended

Zola Fihlani CA(SA) External N/A1 September 2011

17 October 2016

4/4

Dineo Maphatiane

BA Human Resource Management

External N/A1 September 2011

11 September 2016

6/7

Lavinia Khangala

LLM (Masters in Law)LLB BProcHigher Diploma in Financial Planning – CFP

External N/A 1 April 201317 October 2016

3/4

Mamoroke Lehobye1

CA(SA) External N/A17 October 2016

N/A 3/3

Rachell Kalidass

CA(SA) External N/A17 October 2016

N/A 3/3

Compliance With Laws And Regulations• Treasury Regulations

• Trust Property Control Act 53 of 1988

• Basic Conditions of Employment Act 75 of 1997

• Labour Relations Act 66 of 1995

• Public Service Act 103 of 1994

• Public Service Regulations of 2001

• Public Finance Management Act 1 of 1999 as amended

• Employment Equity Act 55 of 1998

• Promotion of Access to Information Act 2 of 2000

• King III Report on Corporate Governance


61


Fraud And Corruption The GPF has a zero tolerance for fraud and corruption. The GPF proactively manages the risk of fraud and corruption. Any suspected fraud and corruption matters are investigated and attended to accordingly. The prevention controls include the existing financial and other controls and checking mechanisms as prescribed in the systems, policies, and procedures of GPF. Where possible, the GPF ensures possible all remedies are pursued.

Consultative sessions were conducted in collaboration with the GDHS.

Minimising Conflict Of InterestThe GPF is committed to ensuring that its business and relationships with clients and suppliers are conducted in an ethical and equitable manner in accordance with good business practice and in a way that safeguards the interests of all stakeholders.

During the year, the board approved the amended Conflicts of Interest Policy. The GPF Conflict of Interests Policy is designed to assist affected parties in identifying situations that could present potential conflicts of interests and to provide the GPF with a procedure and measures to adopt in order to avoid any conflict of interest, identify the existence of any conflict of interest, and to disclose the existence of conflict of interest. Further, it seeks to set out the process, procedures, and internal controls to facilitate compliance with the Policy as well as to highlight the consequences of non-compliance with the Policy by the all parties to which it applies.

All stakeholders are required to comply with the policy.

All declarations done by trustees and employees are kept on file and are reviewed annually.

Code Of Conduct GPF and its management encourage and provide the means for employees to maintain a high-level of code of conduct.

GPF has a responsibility to its Shareholder, communities, stakeholders, itself and to its environment. Fundamental issues such as respect, honesty, communication, teamwork and safety form the basis of this responsibility.

GPF is committed to providing an environment that encourages and fosters open communication, forming the basis for mutual trust and respect. The company and its management encourage and provide the means for employees to responsibly express their ideas, opinions, attitudes and concerns without fear of reprisal.

Each employee of GPF must also observe their ethical obligation in such a way as to carry on business without causing harm to the environment and third parties, other than by fair commercial competitive practices.

GPF regards any contravention of the Code of Conduct as a serious matter. At the same time, any suspected or alleged contravention under investigation by management must be treated with the utmost confidentiality.

If employees believe that their own actions have, or may have, contravened the Code, they should pro-actively report this fact to management who should take appropriate action.


62


If employees suspect that a contravention of the Code has been committed by another employee of GPF, they should promptly and confidentially report this act to management. The individual concerned is not to be confronted by the employee. This process ensures that confidentiality is maintained and the matter will be investigated impartially. Information received anonymously should also be reported in the same manner.

Company/Board SecretaryThe GPF has appointed its Legal, Compliance and Risk Executive to act as its Board Secretary.

The Board Secretary acts in a supportive capacity to the trustees and Chairperson and has direct access to, and ongoing communication with the Chairperson of the Board.

The Board Secretary is responsible for inter alia:

• Acting as the secretary to the Board and Committees;

• Maintenance of the Board and Committee Charters, and compilation of Board papers;

• Maintenance of all Board and Committee attendance registers, minutes and resolutions;

• Taking minutes at Board and Committee meetings;

• Acting as a primary point of contact between trustees and GPF;

• Providing legal support to the Board,

• Guiding trustees regarding their duties, matters of ethics and good governance.


63


Report of the Audit And Risk CommitteeWe are pleased to present our report for the financial year ended 31 March 2017.

Audit and Risk Committee Responsibility

The Audit and Risk Committee reports that it has complied with its responsibilities arising from Section 51 (1)(a)(ii) of the Public Finance Management Act and Treasury Regulation 27.1. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit and Risk Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein, except that we have not reviewed changes in accounting policies and practices.

The Effectiveness of Internal Control

Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the public entity revealed certain weaknesses, which were then raised with the public entity.

The following internal audit work was completed during the year under review:

• Projects Review

• Performance Information

• Fiscal Review

• Financial Management review

• Post Implementation Review

• Governance, Legal and Compliance

• Human Resources Review

• Information Technology Governance Review

• Corporate Form Change Review

• DTI Verification Review

• Supply Chain Management Review

• Annual Financial Statement Review

Furthermore Internal Audit performed ad-hoc review as per management’s request and approved by the Audit and Risk Committee. The ad-hoc reviews performed are as follows:

• Procurement Oversight Reviews (6 Reviews)

• Performance Evaluation Review for staff (Review of management’s assessment)

• Asset Bidding Review


64


The following were areas of concern:

Based in the work performed Internal Audit does not have any significant areas of concern. We urge management to continue striving to strengthen the control environment. Management is encouraged to continue implementing the recommendations made by Internal Audit to improve adequacy and effectiveness of controls.

In-Year Management and Monthly/Quarterly Report

The public entity has reporting monthly and quarterly to the Treasury as is required by the PFMA.

Evaluation of Financial Statements

We have reviewed the annual financial statements prepared by the public entity.

The Audit and Risk Committee concurs and accepts the conclusions of the Auditor-General on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General.

_________________ Mamoroke Lehobye Chairperson of the Audit and Risk Committee Gauteng Partnership Fund

HUMANRESOURCE MANAGEMENT

PART D


66


INTRODUCTION OVERVIEW OF HR MATTERS AT THE GAUTENG PARTNERSHIP FUND

The Gauteng Partnership Fund (GPF) has a human resources department which ensures a strategic approach to building people, management processes, systems and policies. The GPF has embarked on an HR transformation (process) drive to enhance and optimise the delivery of HR services within the organisation. Hereunder are the key HR drivers for the GPF’s strategic imperatives:

• Remuneration Strategies: Reward System;• Performance Management System;• HR Policies• Employee Wellness: Employee Engagement & Satisfaction Survey The employee engagement & satisfaction survey was commissioned in May 2016. The findings of the

survey are being implemented as follows: √ Job evaluation/grading and salary benchmarking

• Review and re-establish corporate culture and values.

HR PRIORITIES FOR THE 2017/18 FISCAL YEAR AND THE IMPACT OF THESE PRIORITIES

HR Priorities Activity Impact

Remuneration Strategies

Review, revise and implement a short-term reward system (short-term incentive) for the GPF.

Draft Remuneration Charter developed.

Job evaluations conducted for all positions as per the Remuneration Policy requirements.

Redefine the culture of high-performance through incentives and rewards.

• Remuneration Policy reviewed• The pay scales broadened • Market benchmark concluded• JD Log Book developed and updatedA Draft Remuneration Charter has been developed to provide a basis for effecting some incremental changes with regard to remuneration, recognition and reward within GPF. . The Charter seeks to outline the company’s intent relating to remuneration, recognition and reward in order to adapt to the changing environment within which GPF operates.

Performance Management System

• Review, and implement the revised system. Areas under review are:

• Rating scale• Linking it to the reward system• Developing and rolling out a new

template• Job description template revised

to align with the new performance management systems

• Job descriptions accordingly validated.

Drive a culture of high performanceHigh-Performance Adaptive leadership programme is ongoingPerformance Management SystemGPF introduced a new performance scorecard providing for four (4) perspectives viz. Organisational, Operational, Financial and People perspectives.


67


HR Policies

Review, revise and implement revised policies.

Align the GPF policies with the broad organisational strategic objectives and direction.The following policies have been reviewed and approved and the Register updated:

• Leave • Office Etiquette • Retention and Succession • Training and Development • Work-Life Balance • Bursary • Employee Wellness • Grievance • HIV and AIDS • Induction • Harassment • Performance Management • Recruitment and Selection • Remuneration • Short-term Incentive • Termination of Employment

Employee Wellness

Conduct a dipstick employee survey to gauge the general ‘pulse’ of employees

Engagement survey conducted and ongoing training implemented on high-performance adaptive leadership and team development.

Organisational Culture

Review and define the GPF values and related behaviours

Adaptive leadership training programme ongoing for senior management and reports

Note: All these priorities are long-term-based, for example ‘culture’

Workforce Planning Framework And Key Strategies To Attract And Recruit A Skilled And Capable Workforce

• Workforce planning is based on the organisational structure which is currently under review;

• The organisation has developed and implemented a new reward system to attract and retain talent;

• The desired organisational culture has been defined. The values have also been revised to drive the revised mandate;

The Recruitment and Selection Policy has provided scope for recruitment practices that create an environment conducive to achieving these objectives.


68


EMPLOYEE PERFORMANCE MANAGEMENT FRAMEWORK

The GPF uses the Balanced Scorecard performance management system. The organisation has reviewed this tool, linking it with the short-term incentive scheme bonus rules. Individual performance contracts and appraisals are linked to this system.

The short incentive scheme has been reviewed adjusted.

Job profiles are validated on a regular basis in order to align them with the performance scorecard and with policies, including those on Training and Development and Short-term Incentives amongst others. The Log Book has been developed. All jobs have been signed off by individual employees.

EMPLOYEE WELLNESS PROGRAMMES

GPF conducted health-related wellness checks for the entire organisation. Our human resources department arranged for the following services for our staff:

• HIV counselling and testing (HCT)

• Cholesterol checks

• BMI/Dietary checks

• Diabetes checks

• Blood pressure tests

• Optometry services

• Workstation massages

To drive this further, the organisation conducted an employee engagement survey. In the 2017/18 fiscal year the organisation is focusing on addressing gaps which were identified by the survey. This would mean the implementation of the proposed interventions, which is also a long-term activity.

Policy Development

HR polices were reviewed and revised accordingly to align with changes in the labour market and legislation.

It was against the backdrop of these policies that the validation of the existing job descriptions was carried out during March May 2016 to determine whether the jobs and job descriptions were still aligned with the objectives in individual departments.

The job description template was also revised to reflect the Perspectives of the Performance Scorecard outlined above. and descriptions of the jobs included the key performance indicators based on the key tasks — to guide the fulfilment of the requirements of the jobs.

In addition, the template was revised to create scope for identifying the requisite skills and competences that link directly with the jobs, in order for these to be included in the annual training plan and as part of the succession planning, where necessary. The Training Plan for 2016 – 2017 has been accordingly developed. The short-, medium- and long-term training would be identified through these job descriptions/profiles.


69


In due course the profiles will be validated, where necessary, to provide for the anticipated changes in the GPF’s strategic mandate. The job description Log Book has been developed and will be similarly updated in order to keep track of the validity of the job content for each position as defined by the organisational structure.

Employee Engagement Survey

The employee engagement survey was commissioned in May 2016. The findings of the survey included, amongst others, job evaluation/grading and salary benchmark as per the policies outlined above.

The survey report also recommends, amongst others, the limited changes with regard to broad-banding of the pay scales, in order to provide scope for career development as opposed to promotion. This is encouraged in order to manage pay delivery in a manner that recognises career growth in light of fewer opportunities for promotion.

In addition, a draft Remuneration Charter has been developed to provide a basis for effecting some incremental changes with regard to remuneration, recognition and reward within GPF. The Charter seeks to outline the company’s intent relating to remuneration, recognition and reward in order to adapt to the changing environment within which GPF operates.

High Performance And Adaptive Leadership Development

The Employee Engagement Survey Action Plan has been developed. The plan included the introduction of the Gallup Strength Finder, aimed at assisting individuals to fully appreciate how their strengths profile influences in their behaviour, activities, and relationships in order to respond to specific situations in the organisation.

GPF is going through a transformational process and has recognised the need for a leadership style that endeavours to improve engagement with employees so as to deliver better results. The High-Performance and Adaptive Leadership programme was introduced to achieve this objective. Two of the three leadership development sessions have been completed. Individual and team strengths have been covered, resulting in the development of a leadership team grid that will be used at the upcoming GPF strategy session. The final leadership session will cover leading change and will be linked to the upcoming change readiness survey.


70


Highlight Achievements

• Implemented a new Performance Management System

• Defined a GPF Culture of high-performance and “values driven organisation”

• GPF introduced a new performance scorecard providing for four (4) perspectives, namely, Organisational, Operational, Financial and People Perspectives.

• Job Description validation

• Leadership and Management Development

Challenges Faced By The Gauteng Partnership Fund

• The GPF has embarked on an HR transformation (process) drive to enhance and optimise delivery

• HR architecture (operating model) introduced for effective and efficient service delivery within the organisation

Future HR Plans/Goals

• GPF Human Resources Business Plan FY2017/18

• Review of Remuneration Structure (cost-to-company v/s base plus benefits)

• Introduction of Pension Fund for GPF employees

• A performance management review process outlining milestones has been developed to guide managers on the dates for submission for purposes of compliance.


71


Human Resource Oversight Statistics The Gauteng Partnership Fund key information on human resources is tabled below. All the financial amounts agree to the amounts disclosed in the annual financial statements.

Personnel Cost by programme/activity/objective

Programme/activity/objective

Total Expenditure for the entity (R’000)

Personnel Expenditure (R’000)

Personnel exp. as a % of total exp. (R’000)

No. of employees

Average personnel cost per employee (R’000)

Board of Trustees 2,396,412 2,396,412 6.46% 8 299,552

Office of the CEO 3,999,930 3,999,930 10.78% 2 1,999,965

Projects unit 11,139,632 11,139,632 30.01% 8 1,392,454

Finance unit 7,897,802 7,897,802 21.27% 8 987,225

Human Resources 1,692,210 1,692,210 4.55% 4 423,052

Marketing and Communications 1,725,679 1,725,697 4.65% 2 862,839

Capital Raising & Special Project 2,075,350 2,075,350 4.62% 1 2,075,350

Portfolio Monitoring 1,716,413 1,716,413 5.59% 2 858,206

Legal, Risk and Compliance 3,947,780 3,947,780 10.63% 4 986,965

Internships 531,856 531,856 1.43% 8 66,482

TOTAL 37,123,063 37,123,063 100% 47 789 852


72


Personnel cost by salary band

Level Personnel Expenditure (R’000)

% of personnel exp. to total personnel cost (R’000)

No. of employeesAverage personnel cost per employee (R’000)

Board of Trustees 2,396,412 6.46% 8 299,552

Top Management 8,952,741 24.13% 3 2,984,247

Senior Management 3,657,893 9.85% 3 1,219,298

Professional qualified 15,934,314 42.93% 11 1,448,574

Skilled 3,636,203 9.79% 7 519,458

Semi-skilled 1,831,752 4.92% 6 305,292

Unskilled 181,892 0.49% 1 181,892

Interns 531,856 1.43% 8 66,482

TOTAL 37,123,063 100% 47 789,852

Performance Rewards

Programme/activity/objective Performance rewardsPersonnel Expenditure (R’000)

% of performance rewards to total personnel cost (R’000)

Board of Trustees 0 2,396,412 0.00%

Top Management 1,741,691 8,952,741 4.70%

Senior Management 398,852 3,657,893 1.08%

Professional qualified 1,346,304 15,934,314 3.63%

Skilled 330,369 3,636,203 0.89%

Semi-skilled 133,225 1,831,752 0.36%

Unskilled 16,833 181,892 0.05%

Interns 0 531,856 0.00%

TOTAL 3,967,274 37,123,063 10.69%


73


Training Costs

Programme/activity/objectiveTraining Expenditure(R’000)

No. of employees trained

Avg training cost per employee

Bursaries 168 164.00 11 15 287.63

NQF Aligned/Skills Programmes 78 585.00 13 6 045.00

Non-NQF Courses 568 984.00 15 37 932.26

Internships 531 856.38 11 48 350.58

AET 0.00 0 0.00

Employment and vacancies

Programme/activity/objective2015/2016 No. of Employees

2015/2016 Approved Posts

2016/2017 No. of Employees

2016/2017 Vacancies

% of vacancies

Office of the CEO 3 3 2 1 33.3%

Projects unit 7 8 8 0 00.0%

Finance unit 10 11 8 0 00.0%

Human Resources 4 5 4 0 00.0%

Marketing and Communications 2 2 2 0 00.0%

Capital Raising & Special Projects 0 0 1 0 00.0%

Portfolio Monitoring 0 0 2 0 00.0%

Legal, Risk and Compliance 4 4 4 0 00.0%

Internships 8 9 8 3 37.5%


74


Programme/activity/objective2015/2016

No. of Employees

2016/2017 Approved

Posts

2016/2017 No. of

Employees

2016/2017 Vacancies

% of vacancies

Top Management 3 3 3 0 00.0%

Senior Management 2 3 3 0 00.0%

Professional qualified 11 11 11 0 00.0%

Skilled 7 8 7 1 12.5%

Semi-skilled 9 6 6 0 00.0%%

Unskilled 1 1 1 0 00.0%

Interns 8 11 8 3 37.5%

Temp employees 1 0 0 0 00.0%%

TOTAL 41 43 39 3 6.97%


75


Employment changes

Salary BandEmployment at beginning of period

Appointments Terminations Employment at end of the period

Top Management 0 0 0 3

Senior Management 0 1 0 3

Professional qualified 0 0 0 11

Skilled 0 0 0 7

Semi-skilled 0 1 0 6

Unskilled 0 0 0 1

Interns 3 3 3 8

TOTAL 3 5 3 39

Reasons for staff leaving

Reason Number % of total no. of staff leaving

Death 0 0.00%

Resignation 0 0.00%

Dismissal 0 0.00%

Retirement 0 0.00%

Ill health 0 0.00%

Expiry of contract 0 0.00%

Other 0 0.00%

TOTAL 0 0.00%

Labour Relations: Misconduct and disciplinary action

Nature of disciplinary Action Number

Verbal Warning 0

Written Warning 0

Final Written warning 0

Dismissal 0

TOTAL 0


76


Equity Target and Employment Equity Status

Levels

MALE

African Coloured Indian White

Current Target Current Target Current Target Current Target

Top Management 1 0 0 0 0 0 0 0

Senior Management 1 0 0 0 0 0 0 0

Professional qualified 3 0 2 0 2 0 0 0

Skilled 3 0 0 0 0 0 0 0

Semi-skilled 0 0 0 0 0 0 0 0

Unskilled 0 0 0 0 0 0 0 0

Temp staff 0 0 0 0 0 0 0 0

Interns 4 0 0 0 0 0 0 0

TOTAL 12 0 2 0 2 0 0 0

Levels

FEMALE

AFRICAN COLOURED INDIAN WHITE

Current Target Current Target Current Target Current Target

Top Management 1 0 0 0 1 0 0 0

Senior Management 2 0 0 0 0 0 0 0

Professional qualified 2 0 0 0 0 0 1 0

Skilled 2 0 0 0 0 0 2 0

Semi-skilled 4 0 2 0 0 0 0 0

Unskilled 1 0 0 0 0 0 0 0

Temp staff 0 0 0 0 0 0 0 0

Interns 4 0 0 0 0 0 0 0

TOTAL 16 0 2 0 1 0 3 0


77


Levels Disabled Staff

Male Female

Current Target Current Target

Top Management 0 0 0 0

Senior Management 0 0 0 0

Professional qualified 0 0 0 0

Skilled 0 0 0 0

Semi-skilled 0 0 0 0

Unskilled/Interns 0 0 0 0

TOTAL 0 0 0 0


78


Bua Africa

FINANCIALINFORMATION

PART E

G a u t e n g P a r t n e r s h i p T r u s t

Registration number IT2422/02 | Trading as Gauteng Partnership FundAnnual Financial Statements for the year ended 31 March 2017

80


Report of the Auditor-General to the Gauteng Provincial Legislature on the Gauteng Partnership Trust trading as the Gauteng Partnership Fund

Report on the financial statements

Opinion

1. I have audited the financial statements of the Gauteng Partnership Fund set out on pages 86 to 166, which comprise statement of financial position as at 31 March 2017, the statement of financial performance, statement of changes in net assets, statement of cash flows and the statement of comparison of budget information with actual information for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Partnership Fund as at 31 March 2017, and financial performance and cash flows for the year then ended in accordance with South African Standard of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

Basis for opinion

3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of my report.

4. I am independent of the public entity in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) together with the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.



81


Responsibilities of the accounting authority for the financial statements

6. The board of trustees, which constitutes the accounting authority, is responsible for the preparation and fair presentation of the financial statements in accordance with SA Standards of GRAP and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

7. In preparing the financial statements, the accounting authority is responsible for assessing the public entity’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless there is an intention to either liquidate the public entity or to cease operations, or there is no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements

8. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

9. A further description of my responsibilities for the audit of the financial statements is included in the annexure to the auditor’s report.

Report on the audit of the annual performance report

Introduction and scope

10. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected objectives presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

11. My procedures address the reported performance information, which must be based on the approved performance planning documents of the public entity. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.



82


12. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected objectives presented in the annual performance report of the public entity for the year ended 31 March 2017:

Objectives Pages in the annual performance report

Objective 2 - Affordable housing delivered in support of government programme of spatial transformation, sustainability and inclusivity

34 – 47

13. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

14. I did not identify any material findings on the usefulness and reliability of the reported performance information for the selected objective.

Other matter

15. I draw attention to the matter below.

Achievement of planned targets

16. Refer to the annual performance report on pages 22 to 32 for information on the achievement of planned targets for the year and explanations provided for the under and overachievement of a number of targets.

Report on the audit of compliance with legislation

Introduction and scope

17. In accordance with the PAA and the general notice issued in terms thereof I have a responsibility to report material findings on the compliance of the public entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

18. I did not identify any instances of material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of PAA.



83


Other information

19. The Gauteng Partnership Fund’s accounting authority is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report thereon and the selected objective presented in the annual performance report that have been specifically reported on in the auditor’s report.

20. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

21. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected objective presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information obtained prior to the date of this auditor’s report, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Internal control deficiencies

22. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance thereon. I did not identify any significant deficiencies in internal control.

Johannesburg31 July 2017



84


Annexure – Auditor-general’s responsibility for the audit 1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional

scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected objectives and on the public entity’s compliance with respect to the selected subject matters.

Financial statements

2. In addition to my responsibility for the audit of the financial statements as described in the auditor’s report, I also:

• identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the public entity’s internal control.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting authority.

• conclude on the appropriateness of the accounting authority’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on The Gauteng Partnership Fund’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report as to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of the auditor’s report. However, future events or conditions may cause a public entity to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.



85


Communication with those charged with governance

3. I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting authority that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and where applicable, related safeguards.



86


Gauteng Partnership Trust(Registration number IT2422/02)Trading as Gauteng Partnership FundAnnual Financial Statements for the year ended 31 March 2017

Report of the Trustees

The Trustees submit their report for the year ended 31 March 2017.

1. Review of activities

Main business and operations

The Gauteng Partnership Fund (GPF) was founded by the Gauteng Department of Human Settlements in 2002 as amechanism for mitigating risk faced by the private sector funding institutions in financing affordable housing developments inthe province.

Since inception as a public entity under the auspices of the Gauteng Department of Human Settlements, GPF has focused itsprogrammes on mobilisation of private sector funding to address the funding constraints that are experienced by social housingproviders and affordable rental housing developers for good quality and well located housing developments.

The GPF mandate was broadened on 24 March 2016 to becoming the financing vehicle for sustainable human settlements andmega projects in Gauteng, beyond the current mandate of using public sector capital to leverage external funding for social andaffordable housing projects in the province.

On 24 March 2016, the MEC: Gauteng Human Settlements instructed that the GPF review its corporate form to enable it toefficiently execute its mandate. On 24 January 2017 an implementation protocol between the Gauteng Department of HumanSettlements and the GPF was signed wherein GPF was appointed as the implementing agent for mega projects by theGauteng Department of Human Settlements. In March 2017 the GPF received R211,485,430 for the implementation of megaprojects. (Refer to note 11 & 25).

The change in mandate includes, among others, the review of the legal structure and corporate form of GPF, with specificintent to dissolve the Gauteng Partnership Trust and establish GPF as either a State-Owned Company (SOC) or a StatutoryEntity established through provincial legislation, and seek approval for the listing of the GPF as a PFMA Schedule 3D listedProvincial Government Business Enterprise. The legal, taxation and financial implications and benefits of the corporate formoptions are currently being investigated and once concluded, the business case will be developed for submission to Treasury.This is still in progress.

The GPF funding model introduces a public risk capital strategy that assumes a first loss position. The GPF funding instrumenttherefore has the character of equity but in the form of a subordination debt. The funding model is also attractive in that itprovides a cushion for the senior lender and the weighted average cost of capital is lower due to GPF's discounted lendinginterest rate.

The broadened mandate resulted in an increase in business activities related to consulting and marketing (Refer to note 18).

2. Statements of responsibility

The Trustees are required to maintain adequate accounting records and are responsible for the content and integrity of theannual financial statements and related financial information included in this report. It is their responsibility to ensure that thefinancial statements fairly present the state of affairs of the Trust as at the end of the financial year and the results of itsoperations and cash flows for the year then ended. The external auditors are engaged to express an independent opinion onthe financial statements.

The financial statements are prepared in accordance with the basis of preparation as detailed in Note 1 of the accountingpolicies note to the financial statements and are based upon appropriate accounting policies consistently applied andsupported by reasonable and prudent judgments and estimates.

The Trustees acknowledge that they are ultimately responsible for the system of internal financial control established by theGPF and place considerable importance on maintaining a strong control environment. To enable the Trustees to meet theseresponsibilities, the Trustees set standards for internal control aimed at reducing the risk error or loss in a cost effectivemanner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accountingprocedures and adequate segregation of duties to ensure an acceptable level of risk.

The Trustees are of the opinion that, based on information and explanations given by management that the system of internalcontrol provides reasonable, but not absolute, assurance that the financial records may be relied on for the preparation of thefinancial statements. Nothing has come to the attention of the Trustees to indicate that any material breakdown in thefunctioning of these controls, procedures and systems has occurred during the year under review.

3



87




3. Subsequent events

The Trust entered into a new lease with Acucap Management Services (Pty) Ltd effective 1 May 2017 for the ground floor of 82Grayston Drive Sandton.

N Maponya was appointed as Trustee on 1 April 2017, G Makhubo was appointed 1 July 2017, D Maphatiane resigned 30 June2017 and the resignation of M Lehobye is effective from 30 September 2017.

On 29 June 2017 the Trust recovered R1,265,166 for the loan to Tenitor Properties (Pty) Ltd.

Subsequent to year-end Trust has decided to foreclose on the loan to DNM Estate (Pty) Ltd. The DNM Estate (Pty) Ltd loan toAsapri (Pty) Ltd of R10,932,764 will be converted to a GPF loan. (Refer to note 5 & 36).

The Trustees are not aware of any other matter or circumstance arising since year-end.

4. Going concern

The financial statements have been prepared on the going concern basis, since the Trustees have every reason to believe thatthe Trust will continue in operation for the foreseeable future due to the expanded mandate.

5. Property, plant, equipment and intangibles

During the year, the Trust purchased property, plant and equipment and intangibles assets to the value of R1,228,296 (2016 :R309,695).

6. Secretary

The entity is not required to have a secretary in terms of the Trust Property Control Act, 1998 (Act No.57 of 1988).However, in accordance with the principles of good governance the GPF does have a secretary.

7. Trustees

Name Nationality Date of appointment/resignationL Mthimunye - Bakoro (Chairperson) Independent Non Executive South

AfricanAppointed 17 October 2016

Z Fihlani Independent Non Executive SouthAfrican

Resigned 17 October 2016

R Kalidass Independent Non Executive SouthAfrican

Appointed 17 October 2016

L Khangala Independent Non Executive SouthAfrican


E Kubeka Independent Non Executive SouthAfrican


M Lehobye Independent Non Executive SouthAfrican


M Leshabane Independent Non Executive SouthAfrican


L Makibinyane Independent Non Executive SouthAfrican


D Maphatiane Independent Non Executive SouthAfrican

Resigned 1 June 2017

N Maponya Independent Non Executive SouthAfrican

Appointed 1 April 2017

S Mbanjwa Independent Non Executive SouthAfrican


C Motsepe (Deputy Chairperson) Independent Non Executive SouthAfrican


P Mphahlele Independent Non Executive SouthAfrican

As Trustee 1 December 2008, asChairperson 1 June 2012,resigned as Chairperson on 17October 2016

4



88




B Muvevi (Chief Executive Officer) Executive South African 1 March 2014U Ndobeni Independent Non Executive South

AfricanResigned 17 October 2016

B Nzo Independent Non Executive SouthAfrican


T Sukazi Independent Non Executive SouthAfrican


The following are further sub-committees of the Board of Trustees:

Audit and Risk Committee

M Lehobye (Chairperson)

Z Fihlani (Resigned 17 October 2016)

R Kalidass

L Khangala (Resigned 17 October 2016)

D Maphatiane

T Sukazi

Investment Committee

C Motsepe (Chairperson)


M Leshabane (Resigned 17 October 2016)

L Makibinyane (Resigned 17 October 2016)

S Mbanjwa (Resigned 17 October 2016)

L Mthimunye - Bakoro

P Mphahlele

B Muvevi

B Nzo

Funding Committee

T Sukazi (Chairperson)


M Lehobye

L Mthimunye - Bakoro

B Muvevi

P Mphahlele

Human Resources and Remuneration Committee

D Maphatiane (Chairperson)

5

89


Gauteng Partnership Trust (Registration number IT2422/02) Trading as Gauteng Partnership Fund Annual Financial Statements for the year ended 31 March 2017


6



C Motsepe

P Mphahlele

At reporting date, Trust assets were sufficient to meet the Trustee's right of indemnity out of the Trust's assets for liabilities incurred on behalf of the Trust.

8. Auditors

Auditor General South Africa will continue in office for the next financial period.

9. Provisions for bad debts

Provision for bad debts decreased due to a favourable judgement obtained on one loan and increased with 3 additional loans that were provided for during the year. (Refer notes 3 & 31).

During the year bad debts written off of R11,551,063 were written off (Refer note 33).

The annual financial statements set out on pages 109 to 167, which have been prepared on the going concern basis, were approved by the Board of Trustees on 30 May 2017 and were signed on its behalf by:

Mr Boni Muvevi Ms. Lindiwe Mthimunye - Bakoro Chief Executive Officer Chairperson

Gauteng Partnership Trust (Registration number IT2422/02) Trading as Gauteng Partnership Fund Annual Financial Statements for the year ended 31 March 2017


6



C Motsepe

P Mphahlele

At reporting date, Trust assets were sufficient to meet the Trustee's right of indemnity out of the Trust's assets for liabilities incurred on behalf of the Trust.

8. Auditors



Provision for bad debts decreased due to a favourable judgement obtained on one loan and increased with 3 additional loans that were provided for during the year. (Refer notes 3 & 31).


The annual financial statements set out on pages 90 to 167, which have been prepared on the going concern basis, were approved by the Board of Trustees on 27 July 2017 and were signed on its behalf by:

Mr Boni Muvevi Ms. Lindiwe Mthimunye - Bakoro Chief Executive Officer Chairperson





C Motsepe

P Mphahlele

At reporting date, Trust assets were sufficient to meet the Trustee's right of indemnity out of the Trust's assets for liabilitiesincurred on behalf of the Trust.

8. Auditors



Provision for bad debts decreased due to a favourable judgement obtained on one loan and increased with 3 additional loansthat were provided for during the year. (Refer notes 3 & 31).


The annual financial statements set out on pages 7 to 84, which have been prepared on the going concern basis, wereapproved by the Board of Trustees on 30 May 2017 and were signed on its behalf by:

Mr Boni Muvevi Ms. Lindiwe Mthimunye - BakoroChief Executive Officer Chairperson

6





90



Statement of Financial PositionFigures in Rand Note(s) 2017 2016

Assets

Current Assets

Cash and cash equivalents 2 870,678,350 815,048,544

Current portion - loans and receivables from exchange transactions 3 39,794,928 7,385,295

Receivables from exchange transactions 4 6,528,539 8,105,875

Loans and receivables held-for-trade 5 164,347,505 55,743,567

Current portion - financial instrument at fair value 6 - 7,793,622

1,081,349,322 894,076,903

Non-Current Assets

Property, plant and equipment 7 2,443,879 2,396,567

Intangible assets 8 46,305 196,729

Loans and receivables from exchange transactions 3 592,112,672 428,535,825

594,602,856 431,129,121

Total Assets 1,675,952,178 1,325,206,024

Liabilities

Current Liabilities

Deferred income 9 135,331,887 288,239,546

Finance lease obligation 10 242,363 337,113

Payables from exchange transactions 11 255,371,323 120,674,322

Provisions 12 4,936,637 4,834,288

395,882,210 414,085,269

Non-Current Liabilities

Finance lease obligation 10 9,454 251,817

Operating lease liability 13 182,341 -

191,795 251,817

Total Liabilities 396,074,005 414,337,086

Accumulated surplus 1,279,878,173 910,868,938

Total Net Assets and Liabilities 1,675,952,178 1,325,206,024

7



91



Statement of Financial PerformanceFigures in Rand Note(s) 2017 2016

Revenue 14 469,504,384 261,224,240

Other income 16 19,619,502 20,030,715

Operating expenses (73,147,244) (75,357,348)

Operating surplus 17 415,976,642 205,897,607

Fair value adjustments 19 (42,758,500) (30,090,162)

Impairment (loss)/reversal of loans and receivables from exchange transactions 20 (4,142,626) 7,145,871

Finance costs 21 (66,283) (51,293)

Surplus for the year 369,009,233 182,902,023

8



92



Statement of Changes in Net Assets

Figures in RandAccumulated

surplusTotal netassets

Balance at 01 April 2015 727,966,915 727,966,915Changes in net assetsSurplus for the year as restated 182,902,023 182,902,023

Total changes 182,902,023 182,902,023

Balance at 01 April 2016 as restated 910,868,940 910,868,940Changes in net assetsSurplus for the year 369,009,233 369,009,233

Total changes 369,009,233 369,009,233

Balance at 31 March 2017 1,279,878,173 1,279,878,173

9



93



Statement of Cash FlowsFigures in Rand Note(s) 2017 2016

Cash flows from operating activities

Receipts

Cash receipts - from borrowers 85,886,903 25,654,144

Cash receipts - interest from banks 47,448,790 41,908,417

DTI grant received 16 1,605,469 2,969,361

Government grants received 9 191,068,638 200,000,000

Gauteng Department of Human Settlements 135,669,567 -

461,679,367 270,531,922

Payments

Employee costs (37,123,063) (33,405,437)

Suppliers (29,720,914) (22,646,072)

Finance costs 21 (66,283) (51,293)

Gauteng Department of Human Settlements - (35,850,689)

Guarantees paid (873,490) (561,633)

Cash paid to borrowers (336,777,405) (164,876,481)

(404,561,155) (257,391,605)

Net cash flows from operating activities 28 57,118,212 13,140,317

Cash flows from investing activities

Purchase of property, plant and equipment 7 (1,228,296) (309,965)

Proceeds from sale of property, plant and equipment 7 151,813 53,500

Net cash flows from investing activities (1,076,483) (256,465)

Cash flows from financing activities

Finance lease payments (411,923) (407,044)

Net increase in cash and cash equivalents 55,629,806 12,476,808

Cash and cash equivalents at the beginning of the year 815,048,544 802,571,736

Cash and cash equivalents at the end of the year 2 870,678,350 815,048,544

10



94



Statement of Comparison of Budget and Actual AmountsBudget on Cash Basis

Figures in Rand

Approvedbudget

Adjustments Final Budget Actual amountson comparable

basis

Differencebetween finalbudget and

actual

Reference

Statement of Financial Performance

Expenditure

Personnel (38,742,139) (1,567,489) (40,309,628) (37,123,063) 3,186,565 Refer to note30

Repairs and maintenance (3,046,082) (265,458) (3,311,540) (2,575,531) 736,009 Refer to note30

General Expenses (45,505,629) (16,309,280) (61,814,909) (27,557,306) 34,257,603 Refer to note30

Total expenditure (87,293,850) (18,142,227) (105,436,077) (67,255,900) 38,180,177

Statement of Financial Position

Assets

Non-Current Assets

Property, plant and equipment 1,174,398 2,546,200 3,720,598 1,228,293 (2,492,305) Refer to note30

Total Assets 1,174,398 2,546,200 3,720,598 1,228,293 (2,492,305)

Cash Flow Statement

Cash flows from operating activities

Payments

Employee costs (38,742,139) (1,567,489) (40,309,628) (37,123,063) 3,186,565 Refer tostatement ofcash flows

Suppliers (48,551,711) (16,574,738) (65,126,449) (30,132,837) 34,993,612 Refer tostatement ofcash flows

Net cash flows from operatingactivities

(87,293,850) (18,142,227) (105,436,077) (67,255,900) 38,180,177

Cash flows from investing activities

Purchase of property, plant andequipment

(1,174,398) (2,546,200) (3,720,598) (1,228,293) 2,492,305 Refer tostatement ofcash flows

Net decrease in cash and cashequivalents

(88,468,248) (20,688,427) (109,156,675) (68,484,193) 40,672,482 Refer to note30

11



95



Accounting Policies

1. Presentation of Annual Financial Statements

The annual financial statements have been prepared in accordance with the South African Standards of GenerallyRecognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) ofthe Public Finance Management Act (Act 1 of 1999).

These annual financial statements have been prepared on an accrual basis of accounting and are in accordance withhistorical cost convention as the basis of measurement, unless specified otherwise. They are presented in South AfricanRand.

A summary of the significant accounting policies, which have been consistently applied in the preparation of these annualfinancial statements, are disclosed below.

The following GRAP Standards have been applied where applicable in the annual financial statements:

1) Reference TopicGRAP 1 Presentation of Financial Statements (as revised in 2010)GRAP 2 Cash Flow Statements (as revised in 2010)GRAP 3 Accounting Policies, Changes in Accounting Estimates and Errors (as revised in 2010)GRAP 4 The Effects of Changes in Foreign Exchange Rates (as revised in 2010) (Not applicable to GPF)GRAP 5 Borrowing Costs (as revised in September 2013) (Not applicable to GPF)GRAP 6 Consolidated and Separate Financial StatementsGRAP 7 Investments in Associates (as revised in March 2012) (Not applicable to GPF)GRAP 8 Interests in Joint Ventures (Not applicable to GPF)GRAP 9 Revenue from Exchange Transactions (as revised in 2010)GRAP 10 Financial Reporting in Hyperinflationary Economies (as revised in 2010) (Not applicable to GPF)GRAP 11 Construction Contracts (as revised in 2010) (Not applicable to GPF)GRAP 12 Inventories (as revised in 2010) (Not applicable to GPF)GRAP 13 Leases (as revised in 2010)GRAP 14 Events after the Reporting Date (as revised in 2010)GRAP 16 Investment Property (as revised in 2010) (Not applicable to GPF)GRAP 17 Property, Plant and Equipment (as revised in 2010)GRAP 19 Provisions, Contingent Liabilities and Contingent Assets (as revised in 2010)GRAP 21 Impairment of Non-cash-generating Assets (Not applicable to GPF)GRAP 23 Revenue from Non-exchange Transactions (Taxes and Transfers)GRAP 24 Presentation of Budget Information in Financial StatementsGRAP 25 Employee Benefits (Not applicable to GPF)GRAP 26 Impairment of Cash-generating AssetsGRAP 27 Agriculture (Not applicable to GPF)GRAP 31 Intangible AssetsGRAP 100 Non-current Assets Held for Sale and Discontinued Operations (as revised in 2010)

(Not applicable to GPF)GRAP 103 Heritage Assets (Not applicable to GPF)GRAP 104 Financial InstrumentsGRAP 105 Transfers of functions between entities under common controlGRAP 106 Transfers of functions between entities not under common controlGRAP 107 Mergers

2) Directives issued and applied:

Reference Topic

Directive 1 Repeal of Existing Transitional Provisions in, and Consequential Amendments to,Standards of GRAP

Directive 2 Transitional Provisions for the Adoption of Standards of GRAP by Public Entities,Municipal Entities and Constitutional Institutions

Directive 3 Amended Transitional Provisions for High Capacity MunicipalitiesDirective 4 Amended Transitional Provisions for Medium and Low Capacity MunicipalitiesDirective 5 Determining the GRAP Reporting FrameworkDirective 6 Transitional Provisions for Revenue Collected by the South African Revenue Service

(SARS) (Not applicable to GPF)Directive 7 The Application of Deemed Cost on the Adoption of Standards of GRAP (Not applicable to GPF)Directive 8 Transitional Provisions for parliament and Provincial Legislatures (Not applicable to GPF)Directive 9 Transitional Provisions for parliament and Provincial Legislatures (Not applicable to GPF)Directive 10 Application of the standard of GRAP by the Public Further and Education Training Colleges (Not

applicable to GPF)Directive 11 Changes in the Measurement Bases Following the Initial Adoption of the Standards of GRAP (Not

applicable to GPF)

12



96



Accounting Policies

3) Interpretations of the Standards of GRAP approved that are applied:

Reference Topic

IGRAP 1 Applying the Probability Test on Initial Recognition of Exchange RevenueIGRAP 2 Changes in Existing Decommissioning, Restoration and Similar Liabilities (Not applicable to GPF)IGRAP 3 Determining whether an Arrangement Contains a LeaseIGRAP 4 Rights to Interests Arising from Decommissioning, Restoration and Environmental

Rehabilitation Funds (Not applicable to GPF)IGRAP 5 Applying the Restatement Approach under the Standard of GRAP on Financial Reporting in

Hyperinflationary Economies (Not applicable to GPF)IGRAP 6 Loyalty Programmes (Not applicable to GPF)IGRAP 7 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their

11 Interaction (Not applicable to GPF)IGRAP 8 Agreements for the Construction of Assets from Exchange Transactions (Not applicable to GPF)IGRAP 9 Distributions of Non-cash Assets to Owners (Not applicable to GPF)IGRAP 10 Assets Received from Customers (Not applicable to GPF)IGRAP 11 Consolidation - Special Purpose EntitiesIGRAP 12 Jointly Controlled Entities - Non-Monetary ContributionsIGRAP 13 Operating Leases – Incentives (Not applicable to GPF)IGRAP 14 Evaluating the Substance of Transactions Involving the Legal Form of a LeaseIGRAP 15 Revenue – Barter Transactions Involving Advertising Services (Not applicable to GPF)IGRAP 16 Intangible Assets - Website Costs

4) Approved guideline of Standards of GRAP that are applied:

Reference TopicGuide 1 Guideline on Accounting for Public Private Partnerships (Not applicable to GPF)

5) Effective IFRS and IFRICs that entities applied:

Reference TopicIFRS 4 (AC 141) Insurance Contracts (Not applicable to GPF)IFRS 6 (AC 143) Exploration for and Evaluation of Mineral Resources (Not applicable to GPF)IAS 12 Income TaxesIFRIC 12 (AC 445) Service Concession Arrangements (Not applicable to GPF)SIC – 25 (AC 425) Income Taxes-Changes in the Tax Status of an Entity or its Shareholders (Not applicable to GPF)SIC – 29 (AC 429) Service Concession Arrangements – Disclosures (Not applicable to GPF)

6) Standards of GRAP approved, but for which the Minister of Finance has not yet determined an effective date:These accounting standards have been considered (where applicable) in the formulation of the accounting policies:

Reference TopicGRAP 32 Service Concession Arrangements: Grantor (Not applicable to GPF)GRAP 108 Statutory Receivables (Not applicable to GPF)GRAP 109 Accounting by Principal and Agents (No effect since the GPF is accounting in accordance with the

standard)IGRAP 17 Service Concession Arrangements Where a Grantor Controls a Significant Residual Interest in an

Asset (Not applicable to GPF)

7) Standards of GRAP that an entity may use to disclose information in its financial statements:

Reference TopicGRAP 20 Related Party Disclosures

8) Directives approved by the Board, which are not yet effective, but can be early adopted:Reference TopicDirective 12 The Selection of an Appropriate Reporting Framework by Public Entities

1.1 Significant judgements and sources of estimation uncertainty

In preparing the annual financial statements, management is required to make estimates and assumptions that affect theamounts represented in the annual financial statements and related disclosures. Use of available information and theapplication of judgement is inherent in the formation of estimates. Actual results in the future could differ from theseestimates which may be material to the annual financial statements. Significant judgements include:

13



97



Accounting Policies

1.1 Significant judgements and sources of estimation uncertainty (continued)

Receivables from exchange transactions

The entity assesses its receivables from exchange transaction and loans and receivables from exchange transactions forimpairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus ordeficit, the Trust makes judgements as to whether there is observable data indicating a measurable decrease in theestimated future cash flows of a financial asset.

The impairment for receivables from exchange transaction and loans and receivables from exchange transactions iscalculated on an individual basis, based on historical loss ratios, adjusted for national and industry-specific economicconditions and other indicators present at the reporting date that correlate with defaults on the portfolio. These annual lossratios are applied to loan balances in the portfolio and scaled to the estimated loss emergence period.

Financial instruments at fair value

The entity follows the guidance of GRAP 104 to determine when a financial instrument at fair value is impaired. Thisdetermination requires significant judgment. In making this judgment, the entity evaluates, among other factors, the durationand extent to which the fair value of an investment is less than its cost; and the financial health of and near-term businessoutlook for the investee, including factors such as industry and sector performance, changes in technology and operationaland financing cash flow.

If all of the declines in fair value below cost were considered significant or prolonged, the entity would suffer an additionaldeficit being a reclassification adjustment of the fair value adjustments previously recognised in other comprehensiveincome and accumulated in equity on the impaired financial instruments at fair value financial assets to surplus or deficit.

Fair value estimation

The fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) isdetermined by using valuation techniques. The entity uses a variety of methods and makes assumptions that are based onmarket conditions existing at the end of each reporting period. Other techniques, such as estimated discounted cash flows,are used to determine fair value for the remaining financial instruments.

The carrying value less impairment provision of receivables and payables are assumed to approximate their fair values.

The carrying amount of financial instruments are fair value would be estimated lower or higher where the discounted rateused in the discount cash flow analysis differs by 10% from management’s estimates.

Options granted

Management used the Black Scholes model to determine the value of the options at issue date. Additional details regardingthe estimates are included in the financial instruments at fair value and the option note.

Impairment testing

The recoverable amounts of individual assets have been determined based on the higher of value-in-use calculations andfair values less costs to sell. These calculations require the use of estimates and assumptions.

The entity reviews and tests the carrying value of assets when events or changes in circumstances suggest that thecarrying amount may not be recoverable.

Provisions

Provisions were raised and management determined an estimate based on the information available. Additional disclosureof these estimates of provisions are included in notes 3, 12, - Provisions.

Taxation

The Trust was granted tax exemption status by the South African Revenue Service in terms of Section 30 of the Income TaxAct, and receipts and accruals are exempt from income tax in terms of Section 10 (1) (CN) of the Income Tax Act. Thestatus quo was applicable for the 2017 year. The Trust in not registered for VAT.

Effective interest rate

The entity used the prime interest rate to discount future cash flows. The entity then used the effective interest rate to writeback the discounted cash flows so that the loan term is equal to the amount initially recognised.

14



98



Accounting Policies

1.1 Significant judgements and sources of estimation uncertainty (continued)

Useful life of property plant and equipment

The entity's management determines the estimated useful lives and related depreciation charges for the property plant andequipment. This estimate is based on management's experience using the assets. Management will increase thedepreciation charge where useful lives are less than previously estimated useful lives.

Useful life of intangible assets

The entity's management determines the estimated useful lives and related amortisation charges for the intangible assets.This estimate is based on management's experience using the assets. Management will increase the amortisation chargewhere useful lives are less than previously estimated useful lives.

1.2 Property, plant and equipment

Property, plant and equipment are tangible non-current assets that are held for use in the production or supply of goods orservices, rental to others, or for administrative purposes, and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised and depreciated as an asset when: it is probable that future economic benefits or service potential associated with the item will flow to the entity; and the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to thelocation and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts andrebates are deducted in arriving at the cost.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurredsubsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item ofproperty, plant and equipment, the carrying amount of the replaced part is derecognised.

Property, plant and equipment is subsequently carried at cost less accumulated depreciation and any impairment losses.After each quarterly asset count the Trust assesses property, plant and equipment for impairment. If there are any indicationsof impairment the Trust estimates the recoverable service amount of the asset. If the asset's carrying value exceeds itsrecoverable amount, the asset is impaired. In the assessing whether there is any indication that an asset many be impaired,the Trust considers all sources of information. The impairment loss is charged as an expense in the Statement of FinancialPerformance.

Depreciation is recognised in the Statement of Financial Performance and is calculated on a straight-line basis over theestimated useful life of the asset. The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life

Furniture and fixtures Straight line 4, 6 and 10 yearsMotor vehicles Straight line 10 yearsOffice equipment Straight line 2 to 7 yearsComputer equipment Straight line 2 to 6 yearsLeasehold improvements Straight line 6 years

The useful life and depreciation method of each asset are reviewed at the end of each reporting date. If the expectations differfrom previous estimates, the change is accounted for as a change in accounting estimate.

Reviewing the useful life of an asset on an annual basis does not require the entity to amend the previous estimate unlessexpectations differ from the previous estimate.

The depreciation charge for each period is recognised in surplus or deficit.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economicbenefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit whenthe item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment isdetermined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

15



99



Accounting Policies

1.3 Intangible assets

An asset is identifiable if it either: is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or

exchanged, either individually or together with a related contract, identifiable assets or liability, regardless ofwhether the entity intends to do so; or

arises from binding arrangements (including rights from contracts), regardless of whether those rights aretransferable or separable from the entity or from other rights and obligations.

A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were inthe form of a contract.

An intangible asset is recognised when: it is probable that the expected future economic benefits or service potential that are attributable to the asset will

flow to the entity; and the cost or fair value of the asset can be measured reliably.

The entity assesses the probability of expected future economic benefits or service potential using reasonable and supportableassumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life ofthe asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measuredat its fair value as at that date.

Intangible assets are subsequently carried at cost less accumulated depreciation and any impairment losses.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a finite useful life is an indicator that the asset may be impaired. As aresult the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised asintangible assets.

Internally generated goodwill is not recognised as an intangible asset.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Useful lifeComputer software 2 to 5 years

Intangible assets are derecognised: on disposal; or when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising from the derecognition of an intangible assets is included in surplus or deficit when the asset isderecognised.

1.4 Financial instruments

Classification

The entity classifies financial assets and financial liabilities into the following categories: Loans and receivables at amortised cost Financial instruments at fair value

Classification depends on the purpose for which the financial instruments were obtained / incurred and takes place at initialrecognition. Classification is re-assessed on an annual basis, except for derivatives and financial assets designated as atfair value through surplus or deficit, which shall not be classified out of the fair value through surplus or deficit category.

16



100



Accounting Policies

1.4 Financial instruments (continued)

Initial Recognition

Financial instruments are recognised initially when the entity becomes a party to the contractual provisions of theinstruments.

Loans and receivables are concessionary loans and are measured initially at fair value by comparing the loan discountedrates given to market related rates. The discount given is account for are a social benefit adjustment loss through surplus ordeficit.

Subsequent measurement

Loans and receivables are concessionary loans and are subsequently measured at amortised cost, using the effectiveinterest method, less accumulated impairment losses.

Receivables from exchange transaction

Receivables from exchange transactions are subsequently measured at amortised cost using the effective interest ratemethod, less any impairment loss recognised to reflect irrecoverable amounts.

Loans and receivables from exchange transactions

Loans and receivables are concessionary loans and are initially recognised at fair value by comparing the loan discountedrates given to market related rates. The discount given is account for are a social benefit adjustment loss through surplus ordeficit. Loans and receivables from exchange transactions are non-derivative financial assets with fixed or determinablepayments that are not quoted on an active market. Subsequently, these are measured at amortised cost using the effectiveinterest rate method, less any impairment loss recognised to reflect irrecoverable amounts.

Loans and receivables held-for-trade

Loans and receivables held-for-trade are instruments incurred principally for the purpose of selling it in the short term.Loans and receivables held-for-trade are initially and subsequently recognised at cost which approximates fair value. Loansand receivables held-for-trade are non-derivative financial assets with fixed or determinable payments that are not quotedon an active market.

Impairment of Financial Instruments

At each end of the reporting period the entity assesses all financial assets, other than those at fair value through surplus ordeficit, to determine whether there is objective evidence that a financial asset or group of financial assets has beenimpaired.

For amounts due to the entity, significant financial difficulties of the debtor, probability that the debtor will enter bankruptcyand default of payments are all considered indicators of impairment.

In the case of equity securities classified as financial assets at fair value, a significant or prolonged decline in the fair valueof the security below its cost is considered an indicator of impairment. If any such evidence exists for financial instrumentsat fair value, the cumulative loss - measured as the difference between the acquisition cost and current fair value, less anyimpairment loss on that financial asset previously recognised in surplus or deficit - is removed from equity as areclassification adjustment and recognised in surplus or deficit.

Impairment losses are recognised in surplus or deficit.

17



101



Accounting Policies


The Trust assesses its loans and receivables from exchange transactions at each statement of financial position date,whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A loan or receivableis deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events thathave occurred after the initial recognition of the asset and that loss events has an impact on the estimated future cash flowsof the loan. Evidence of impairment may include indications that the debtor or group of debtors is experiencing significantfinancial difficulty, default or delinquency interest or principle payments, the probability that they will enter bankruptcy andwhere observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes inarrear or economic conditions that correlate with defaults. If there is objective evidence that an impairment loss has beenincurred, the amount of the loss is measured as the difference between the carrying amount and the present value ofestimated future cash flows discounted at the original interest rate from financial asset. For the purpose of a collectiveevaluation of impairment, financial assets are grouped on the basis of collateral type and past due status. Impairmentlosses are reversed in subsequent periods when an increase in the investment's recoverable amount can be relatedobjectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount ofthe investment at the date the impairment is reversed, shall not exceed what the amortised cost would have been has theimpairment not been recognised. In determining whether an impairment allowance should be recorded in the statement offinancial position, the Trust makes judgments as to whether there is objective evidence that the asset might be impaired.The impaired allowance is measured as the difference between the carrying amount and the present value of the estimatedfuture cash flows discounted at the original effective rate from a financial asset. The carrying amount of the asset is reducedthrough the use of an allowance account, and the amount of the loss is recognised in the statement of financialperformance. Interest income continues to be accrued on the reduced carrying amount based on the original effectiveinterest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the currenteffective interest rate. Criteria used to determine the objective evidence would include financial analysis and non-compliance with the loan agreement. Objective evidence would include a significant or prolonged decline in the fair value ofthe loan below its cost.

When receivable from exchange transactions is uncollectible, it is written off against the allowance account for tradereceivables. Subsequent recoveries of amounts previously written off are credited against income in the statement offinancial performance. Gains or losses from the amortisation process are recognised in the surplus or deficit. Receivablesfrom exchange transaction are classified as loans and receivables from exchange transactions. Gains and losses arerecognised in the statement of financial performance when the receivables from exchange transaction are derecognised orimpaired, as well as through the amortisation process.

Impairment losses are reversed when an increase in the financial asset's recoverable amount can be related objectively toan event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the financialasset at the date that the impairment is reversed shall not exceed what the carrying amount would have been had theimpairment not been recognised.

Reversals of impairment losses are recognised in surplus or deficit except for equity investments classified as financialinstruments at fair value.

Impairment losses are also not subsequently reversed for financial instruments at fair value which are held at cost becausefair value was not determinable.

Where financial assets are impaired through use of an allowance account, the amount of the loss is recognised in surplusor deficit within operating expenses. When such assets are written off, the write off is made against the relevant allowanceaccount. Subsequent recoveries of amounts previously written off are credited against operating expenses.

Assets past due or impaired that have been renegotiated

The GPF bases this renegotiation on the results of project monitoring including financial analysis, non-compliance with theloan agreement and representations from the borrower.

Impairment of financial assets

Receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using theeffective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in surplus ordeficit when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probabilitythat the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are consideredindicators that the trade receivable is impaired. The allowance recognised is measured as the difference between theasset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest ratecomputed at initial recognition.

The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the deficit isrecognised in surplus or deficit within operating expenses. When a trade receivable is uncollectible, it is written off againstthe allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited againstoperating expenses in surplus or deficit.

18



102



Accounting Policies


Payables from exchange transactions

Gains and losses from the amortisation process are recognised in the statement of financial performance when the trade andother payables are derecognised.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments thatare readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These amountsare initially measured at amortised cost and subsequently recorded at fair value.

Loans and receivables held-for-trade

Loans and receivables are classified as held-for-trade if their carrying amount will be recovered principally through a saletransaction rather than through continuing use. Management is committed to the sale, which should be expected to qualifyfor recognition as a completed sale within one year from the date of classification.

Loans and receivables held-for-trade are measured at cost which approximates the fair value.


Derivatives embedded in other financial instruments or other non-financial host contracts are treated as separatederivatives when their risks and characteristics are not closely related to those of the host contract and the host contract isnot carried at fair value with unrealised gains or losses reported in surplus or deficit.

Changes in the fair value of derivative financial instruments are recognised in surplus or deficit as they arise.

A derivative is a financial instrument or other contract within the scope of the standard with all three of the followingcharacteristics:

a) Its value in response to the change in a specified interest rate, financial instruments price, commodity price, foreignexchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financialvariable that the variable is not specific to a party to the contract;

b) It requires no initial net investment or an initial net investment that is smaller than would be required for other types ofcontracts that would be expected to have a similar response to changes in market factors; and

c) it is settled at a future date.

The put/call option is considered a derivative financial instrument due to the following:

a) the put/call option's value changes in response to the financial instruments price being the change in the fair value of theequity investments year on year;

b) the put/call option required no initial net investment in terms of the shareholders agreement; and

c) the call option was exercised.

19



103



Accounting Policies


Derecognition

Financial instruments are derecognised when the obligation becomes fulfilled. Any surplus or deficit is recognised throughsurplus or deficit

The entity documents at the inception of the transaction the relationship between hedging instruments and hedged items,as well as its risk management objectives and strategy for undertaking various hedging transactions. The entity alsodocuments its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used inhedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.

The fair values of various derivative instruments used for hedging purposes are disclosed in note .

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item ismore than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12months.

1.5 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A leaseis classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the entity assesses the classification of each element separately.

Finance leases - lessee

Finance leases are recognised as assets in the statement of changes in net assets at amounts equal to the fair value of theleased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor isincluded in the statement of changes in net assets as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the prime lending rate at theinception of the lease .

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. Thefinance charge is allocated to each period during the lease term so as to produce a constant periodic rate on the remainingbalance of the liability.

Operating leases - lessor

Operating lease revenue is recognised as revenue on a straight-line basis over the lease term.

Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leasedasset and recognised as an expense over the lease term on the same basis as the lease revenue.

The aggregate cost of incentives is recognised as a reduction of rental revenue over the lease term on a straight-line basis.

The aggregate benefit of incentives is recognised as a reduction of rental expense over the lease term on a straight-linebasis.

Income for leases is disclosed under revenue in statement of financial performance.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The differencebetween the amounts recognised as an expense and the contractual payments are recognised as an operating leaseliability.

1.6 Inventories

Events after the reporting date, are those events both favourable and unfavourable that occur between the reporting dateand the date when the Financial Statements are authorised for issue, and are treated as follows:

- The entity shall adjust the amounts recognised in its Annual Financial Statements to reflect adjusting events after thereporting date for those events that provide evidence that provide evidence of conditions that existed at the reporting date ,and

20



104



Accounting Policies

1.6 Inventories (continued)

- The entity shall not adjust the amounts recognised in its annual finical statements to reflect non-adjusting events after thereporting date for those events that are incident of conditions that arose after the reporting date.

1.7 Prior period errors

Errors in the preparation of the financial statements of one or more prior periods may be discovered in the current period.

These errors may occur as a result of:- mathematical mistakes,- mistakes in applying accounting policies or in the interpretation of facts,- or oversight

The correction of these errors that relate to prior periods requires the restatement of the comparative information. The financialstatements, including the comparative information for prior periods, is presented as if the error had been corrected in the periodin which it was made.

1.8 Impairment of cash-generating assets

Cash-generating assets are assets managed with the objective of generating a commercial return. An asset generates acommercial return when it is deployed in a manner consistent with that adopted by a profit-oriented entity.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematicrecognition of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of changes in net assets after deductingany accumulated depreciation and accumulated impairment losses thereon.

A cash-generating unit is the smallest identifiable group of assets managed with the objective of generating a commercialreturn that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets orgroups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and incometax expense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction betweenknowledgeable, willing parties, less the costs of disposal.

Recoverable amount of an asset or a cash-generating unit is the higher its fair value less costs to sell and its value in use.

Useful life is either:(a) the period of time over which an asset is expected to be used by the entity; or(b) the number of production or similar units expected to be obtained from the asset by the entity.

Criteria developed by the entity to distinguish cash-generating assets from non-cash-generating assets are as follow:

1.9 Deferred income

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the entityhas complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria,conditions or obligations have not been met a liability is recognised.(Refer to note 1.11).

21



105



Accounting Policies

1.10 Employee benefits

Short-term employee benefits

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paidvacation leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which theservice is rendered and are not discounted.

A provision is made for the estimated liability as a result of services rendered by employees up to reporting date. Provisionsincluded in the statement of financial position are provisions for leave and bonuses. (based on current salary rates)

No provision has been made for retirement benefits as the Trust does not provide for retirement benefits for its employees.

1.11 Provisions and contingencies

Provisions are recognised when: the entity has a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits or service potential will be required to

settle the obligation; and a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation atthe reporting date.

Where the effect of time value of money is material, the amount of a provision is the present value of the expendituresexpected to be required to settle the obligation.

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risksspecific to the liability.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if itis no longer probable that an outflow of resources embodying economic benefits or service potential will be required, tosettle the obligation.

Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. Thisincrease is recognised as an interest expense.

A provision is used only for expenditures for which the provision was originally recognised.

Provisions are not recognised for future operating deficits.

A constructive obligation to restructure arises only when an entity: has a detailed formal plan for the restructuring, identifying at least:

- the activity/operating unit or part of a activity/operating unit concerned;- the principal locations affected;- the location, function, and approximate number of employees who will be compensated for services beingterminated;- the expenditures that will be undertaken; and- when the plan will be implemented; and

has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement thatplan or announcing its main features to those affected by it.

Contingent liabilities are not recognised. Contingencies are disclosed in note 29.

1.12 Revenue from exchange transactions

Interest received is an exchange transaction for loan given out. Interest received approximates equal value to the otherparty in exchange.

Interest received from exchange transactions is recognised, in surplus or deficit, and is subsequently measured using theeffective interest rate method.

1.13 Revenue from non-exchange transactions

Government grants

Interest earned from government grants is accumulated and used for the Trusts mandate.

22



106



Accounting Policies

1.13 Revenue from non-exchange transactions (continued)

Non-exchange transactions are defined as transactions where the entity receives value from another entity without directlygiving approximately equal value in exchange.

Revenue from non exchange transactions is recognised as revenue to the extent that the entity has complied with any ofthe criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligationshave not been met a liability is recognised.

Revenue is measured at the fair value of the consideration received or receivable.

1.14 Deferred Income

Deferred income represents the amounts of government grants not yet disbursed. (Refer to note 1.13).

1.15 Accounting by principals and agents

Identification

An agent is an entity that has been directed by another entity (a principal), through a binding arrangement, to undertaketransactions with third parties on behalf of the principal and for the benefit of the principal.

A principal is an entity that directs another entity (an agent), through a binding arrangement, to undertake transactions withthird parties on its behalf and for its own benefit.

A principal-agent arrangement results from a binding arrangement in which one entity (an agent), undertakes transactions withthird parties on behalf, and for the benefit of, another entity (the principal).

Identifying whether an entity is a principal or an agent

When the Entity is party to a principal-agent arrangement, it assesses whether it is the principal or the agent in accountingfor revenue, expenses, assets and/or liabilities that result from transactions with third parties undertaken in terms of thearrangement.

The assessment of whether an entity is a principal or an agent requires the entity to assess whether the transactions itundertakes with third parties are for the benefit of another entity or for its own benefit.

The GPF is the implementing agent for mega projects for the Gauteng Provincial Department of Human Settlements. TheGPF also administers institutional subsidies on behalf of Gauteng Provincial Department of Human Settlements. As suchfunds received for mega projects and institutional subsidies during the financial year is accounted for as a payables fromexchange transactions and the corresponding cash deposits received are accounted for as cash and cash equivalents. ( Refer note 2 &12).

Recognition

The entity, as a principal, recognises revenue and expenses that arise from transactions with third parties in a principal-agent arrangement in accordance with the requirements of the relevant Standards of GRAP.

The entity, as an agent, recognises only that portion of the revenue and expenses it receives or incurs in executing thetransactions on behalf of the principal in accordance with the requirements of the relevant Standards of GRAP.

The entity recognises assets and liabilities arising from principal-agent arrangements in accordance with the requirementsof the relevant Standards of GRAP.

1.16 Borrowing costs

Borrowing costs are interest and other expenses incurred by an entity in connection with the borrowing of funds.

Borrowing costs are recognised as an expense in the period in which they are incurred.

1.17 Irregular and fruitless and wasteful expenditure

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred incontravention of or that is not in accordance with a requirement of any applicable legislation, including -

(a) this Act; or(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or(c) any provincial legislation providing for procurement procedures in that provincial government.

23



107



Accounting Policies

1.17 Irregular and fruitless and wasteful expenditure (continued)

National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the PFMArequires the following (effective from 1 April 2008):

Irregular expenditure that was incurred and identified during the current financial and which was condoned before year-endand/or before finalisation of the annual financial statements must also be recorded appropriately in the irregular expenditureregister. In such an instance, no further action is also required with the exception of updating the note to the annualfinancial statements.

Irregular expenditure that was incurred and identified during the current financial year and for which condonement is beingawaited at year-end must be recorded in the irregular expenditure register. No further action is required with the exceptionof updating the note to the annual financial statements.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year,the register and the disclosure note to the annual financial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by theNational Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability forthe irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law.Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, theaccounting officer or accounting authority may write off the amount as debt impairment and disclose such in the relevantnote to the annual financial statements. The irregular expenditure register must also be updated accordingly. If the irregularexpenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against therelevant programme/expenditure item, be disclosed as such in the note to the annual financial statements and updatedaccordingly in the irregular expenditure register.

1.18 Government grants/Deferred income

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the entityhas complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria,conditions or obligations have not been met a liability is recognised. (Refer 1.11)

1.19 Budget information

GPF is subject to budgetary limits in the form budget authorisations, which is given effect through its authorising body, theBoard.

General purpose financial reporting by entity shall provide information on whether resources were obtained and used inaccordance with the legally adopted budget.

The approved budget is prepared on a cash basis and presented by economic classification linked to performance outcomeobjectives.

The approved budget covers the fiscal period from 2016/04/01 to 2017/03/31.

The annual financial statements and the budget are not on the same basis of accounting therefore a reconciliation hasbeen included with the budgeted amounts for the reporting period have been included in the Statement of Comparison ofBudget and Actual Amounts.

1.20 Related parties

The entity operates in an economic sector currently dominated by entities directly or indirectly owned by the South AfricanGovernment. As a consequence of the constitutional independence of the three spheres of government in South Africa,only entities within the national sphere of government are considered to be related parties.

Management are those persons responsible for planning, directing and controlling the activities of the entity, including thosecharged with the governance of the entity in accordance with legislation, in instances where they are required to performsuch functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, orbe influenced by, that management in their dealings with the entity.

1.21 Events after reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and thedate when the financial statements are authorised for issue. Two types of events can be identified:

24



108



Accounting Policies

1.21 Events after reporting date (continued) those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date);

and those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting

date).

The entity will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date oncethe event occurred.

The entity will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannotbe made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of userstaken on the basis of the financial statements.

1.22 Going concern assumptions

The Trustees have every reason to believe that the Trust has adequate resources in place to continue in operation for theforeseeable future.

25



109



Notes to the Annual Financial StatementsFigures in Rand 2017 2016

2. Cash and cash equivalents

Cash and cash equivalents consist of:

Call account 687,774 494,341Capital account 570,748,375 678,468,267Current account 44,637,384 17,148,509Deposits held on behalf of Gauteng Department of Human Settlements 254,596,885 118,927,318Petty cash 7,932 10,109

870,678,350 815,048,544

The money held in the call account is ceded to Acucap Investment (Pty) Ltd as the GPF's rental deposit. This amount willonly become available to the GPF in 30 June 2019.

The Trust holds its Capital Account with the Corporation of Public Deposits at the South African Reserve Bank. This cashwill be used to settle current and future commitments as per the Trust's mandate.

The Current Account comprises of the salaries and operational budget.

The Trust holds deposits on behalf of the Gauteng Department of Human Settlement, R254,596,885 (2016: R118,927,318),that are not available for use by the GPF. (Refer to note 11 & 25).

R389,201,020 (2016: R477,470,755) of the Capital Account amount of R410,097,695 has been committed. (Refer to note24). The Capital Account is the cash available for future investments and fulfilment of the GPF mandate.

Cash at banks earn interest at floating rates based on daily bank deposits rates.

The fair value of cash equivalents approximates their carrying value as equivalents are readily convertible to cash.

Credit quality of cash at bank and short term deposits, excluding cash on hand

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impairedcan be assessed by reference to external credit ratings (if available) or historical information about counter-party defaultrates:

Credit ratingBaa 2 870,678,350 815,048,544

3. Loans to (from) economic entities

Ace Pallets (Pty) Ltd - Portion 26 of Erf 381 Vanderbijlpark Central West 5Extension 1Loan amount 4,558,568 -Advance 14,792,803 5,354,112Interest earned 1,043,475 39,176Short-term payments received (12,122,495) -Social benefit adjustment (412,737) (840,548)Interest amortised using effective interest rate (299,812) 5,828

7,559,802 4,558,568

The loan facility to Ace Pallets (Pty) Ltd - Portion 26 of Erf 381 Vanderbijlpark comprises of an interest-bearing loan ofR8,101,420. The loan is for twenty-years and is repayable in monthly instalments commencing in March 2017. The loanbears interest at a staggered JIBAR plus 0.5% rate. The nominal value of the loan is R9,107,071 ( 2016: R5,393,288). Theloan is secured by a mortgage bond over Portion 26 of Erf 381 Vanderbijlpark Central West 5 Extension 1.

Aquarella Investments 360 (Pty) Ltd - 85-87 Quartz StreetLoan amount 2,068,698 3,598,349Prior year's current-term portion reversed - 272,136Prior year's provision for doubtful debts reversed 2,068,698 -Interest earned 183,669 243,349Advance 58,653 -Interest earned using the effective interest rate method 976,598 131,645Impairment (21,356) (108,083)

26



110




3. Loans to (from) economic entities (continued)Provision for doubtful debts - (2,068,698)Bad debt written off (2,734,960) -Current-term portion transferred to current assets (2,600,000) -

- 2,068,698

The loan facility to Aquarella Investments 360 (Pty) Ltd comprised of an interest-free loan of R794,000 and interest-bearingloan of R4,332,800. The interest-free facility was for ten-years and was repayable in five equal annual instalments whichshould have commenced in July 2018. The interest-bearing facility was for twenty-years and beared interest at a staggeredJIBAR rate. The interest-bearing facilities repayment was meant to commence in March 2015. The non-payment resulted inthe loan being impaired (Refer to note 20). The nominal value of the loan is R2,600,000 ( 2016: R5,092,638). The loan wasprovided as a doubtful debt due to breach of contract. The GPF auctioned the property and expected to receive asettlement of R2,600,000. This amount was received in May 2017. The loan was secured by a mortgage bond over Erf5176 Hillbrow.

Bixowize CC t/a Kingdom Properties CC - Erf 278 Primrose HillLoan amount 1,735,581 1,257,274Prior year's current-term portion reversed 17,598 -Advance 2,875,356 534,804Interest earned 199,576 80,040Short-term payments received (15,354) -Social benefit adjustment (631,230) (177,284)Interest amortised using effective interest rate 113,019 58,345Impairment (452,194) -Current-term portion transferred to current assets - (17,598)

3,842,352 1,735,581

The loan to Bixowize CC t/a Kingdom Properties CC comprises of an interest-free loan of R1,403,545 and interest-bearingof R4,574,300. The interest-free facility is for fourteen years and is repayable in five equal instalments commencing inFebruary 2018. The interest-bearing facility is for twenty-five years and bears interest at a staggered JIBAR rate and isrepayable in monthly instalments commencing in April 2016. The nominal value of the loan is R5,252,649 ( 2016:R2,193,072). The loan is secured by a mortgage bond over Erf 278 Primrose Hill. The loan was restructured and themoratorium on payments was extended. This has resulted in an impairment of the loan. (Refer to note 20).

BM Molefi Properties 241 (Pty) Ltd - Kgorong EstateLoan amount 10,898,415 1Amount provided for as provision debt in prior year 10,898,415 19,850,646Interest earned 2,124,540 1,730,216Interest amortised using effective interest rate 3,800,264 215,967Provision for doubtful debts - (10,898,415)Current-term portion transferred to current assets (27,721,634) -

- 10,898,415

The twenty-year loan facility of R22,305,600 to BM Molefi Properties 241 (Pty) Ltd - Kgorong Estate bears interest at JIBARplus 1%(rounded to the nearest whole number) and the capital was repayable in monthly instalments which commenced inDecember 2014. The nominal value of the loan is R27,721,634 (2016:R25,597,091). The loan is secured by a mortgagebond over Erf 6623 Soweto, Johannesburg. The GPF obtained a judgement against BM Molefi Properties 241 (Pty) Ltd -Kgorong Estate to pay back the loan amount together with interest. The provision for doubtful debts was reversed. (Refer tonote 16).

Bravo Enterprise and Projects (Pty) Ltd - Erf 231 Kempton Park located on 26KemptonAdvance 3,295,648 -Interest earned 80,132 -Social benefit adjustment (1,134,622) -Interest amortised using effective interest rate 66,948 -

2,308,106 -

27



111




3. Loans to (from) economic entities (continued)

The twenty-year loan facility to Bravo Enterprise and Projects (Pty) Ltd - Erf 231 Kempton Park comprises of a interest-freeloan of R1,600,000 and an interest-bearing loan of R4,629,500 . The interest-free loan is repayable in monthly instalmentscommencing in August 2021. The interest-bearing facility bears interest at JIBAR plus 0.5% staggered and is repayable inmonthly instalments commencing in February 2018. The nominal value of the loan is R3,375,780 ( 2016: RNil). The loan issecured by a mortgage bond over Erf 231 Kempton Park.

Brickfields Housing Company (Pty) LtdLoan amount 12,875,738 11,483,281Interest amortised using effective interest rate 1,424,262 1,392,457Short-term payments received (14,300,000) -

- 12,875,738

The nominal value of the twelve year loan to Brickfield's Housing Company (Pty) Ltd of R14,300,000 consists ofredeemable preference shares with a fixed redemption date in February 2017 and is interest-free. The shares wereredeemed in November 2016.

Bruzar Consulting Engineers (Pty) Ltd - Erven 484, 485 & 487 FerndaleLoan amount 474,967 -Advance 113,147 435,439Interest earned 70,836 39,528Current-term portion transferred to current assets (12,651) -

646,299 474,967

The twenty-year loan facility to Bruzar Consulting Engineers (Pty) Ltd - Erven 484, 485, & 487 Ferndale comprises of aninterest-bearing loan of R6,032,502 . This interest bearing facility bears interest at prime plus 1% and the capital isrepayable in monthly instalments commencing in July 2016. The nominal value of the loan is R652,783 ( 2016: R474,967).The loan is secured by a mortgage bond over Erven 484, 485, & 487 Ferndale .

BUA Africa (Pty) Ltd - Erf 2918 Kempton ParkLoan amount 15,480,273 -Prior year's current-term portion reversed - 2,964,416Advance 68,924,193 16,997,551Interest earned 5,894,787 300,551Social benefit adjustment (4,155,816) (4,849,957)Interest amortised using effective interest rate 471,781 92,516Impairment - (24,804)Loans and receivables held for trade (48,195,345) -

38,419,873 15,480,273

The twenty-year loan facility to BUA Africa (Pty) Ltd - Erf 2918 Kempton Park comprises of a interest-free loan ofR2,000,000 and interest-bearing loan of R38,676,400. The interest-free facility is repayable in monthly instalments whichcommence in January 2021. The interest-bearing facility bears interest at a staggered JIBAR plus 0.5% and is repayable inmonthly instalments commencing in January 2018. The nominal value of the loan is R95,101,616 ( 2016: R22,282,637).The loan is secured by a mortgage bond over Erf 2918 Kempton Park. The loan was impaired in the prior year as the loanwas renegotiated . (Refer note 20). The GPF has concluded an agreement with a senior funder to purchase the seniorportion of this loan. This portion was transferred to loans and receivables assets held for trading. (Refer to note 5).

Cape Gannet Properties 175 (Pty) Ltd - Erf 42 Kempton ParkLoan amount 2,598,371 1,076,671Advance 162,500 2,075,229Interest earned 155,906 92,662Short-term payments received (185,500) -Social benefit adjustment (24,961) (714,761)Interest amortised using effective interest rate 122,085 68,570

2,828,401 2,598,371

28



112





The twenty-year loan facility to Cape Gannet Properties 175 (Pty) Ltd - Erf 42 Kempton Park comprises of a interest-freeloan of R1,642,075 and interest-bearing loan of R1,991,730. The interest-free facility is repayable in five equal instalmentswhich commence in February 2019. The interest-bearing facility bears interest at a staggered JIBAR and is repayable inmonthly payments which have commenced. The nominal value of the loan is R3,581,121 (2016: R3,614,317). The loan issecured by a mortgage bond over Erf 42 Kempton Park.

Castle Crest Properties 80 (Pty) Ltd - Erf 504 PretoriaLoan amount 2,884,111 2,946,544Prior years current-term portion reversed 48,759 52,838Interest earned 238,958 218,155Short-term payments received (347,000) (428,282)Interest amortised using effective interest rate 150,535 143,615Current-term portion transferred to current assets (53,200) (48,759)

2,922,163 2,884,111

The loan facility to Castle Crest Properties 80 (Pty) Ltd - Erf 504 Pretoria comprises of a interest-free loan of R846,000 andinterest-bearing loan of R3,375,227. The interest-free facility is for ten-years and is repayable in five equal instalmentscommencing in November 2018. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBARplus 0.5% rate . The interest-bearing facility repayments have commenced. The nominal value of the loan is R4,076,255 (2016: R4,184,295). The loan is secured by a mortgage bond over Erf 504 Arcadia, Pretoria.

Castle Crest Properties 80 (Pty) Ltd - Erf 233 Kempton ParkLoan amount 8,823,463 3,638,865Prior years current-term portion reversed 58,885 -Advance - 5,459,190Interest earned 735,295 534,990Short-term payments received (984,000) -Social benefit adjustment - (773,561)Interest amortised using effective interest rate 200,293 168,008Impairment - (145,144)Current-term portion transferred to current assets (46,706) (58,885)

8,787,230 8,823,463

The loan facility to Castle Crest Properties 80 (Pty) Ltd - Erf 233 Kempton Park comprises of a interest-free loan ofR1,022,700 and interest-bearing loan of R9,602,800. The interest-free facility is for nine-years and is repayable in fiveequal instalments commencing in October 2019. The interest-bearing facility is for twenty-years and bears interest at astaggered JIBAR plus 0.5% rate. The interest-bearing facilities repayments have commenced. The nominal value of theloan is R10,355,320 ( 2016: R10,604,025). The loan is secured by a mortgage bond over Erf 233 Kempton Park. The loanwas renegotiated in the prior year and the moratorium on payments was extended as there were delays in construction.This has resulted in an impairment of the loan. (Refer to note 20).

Cicima Property Management Solutions (Pty) Ltd - Erf 1686 BenoniLoan amount 15,109 -Advance 611,251 30,734Social benefit adjustment (303,370) (15,891)Interest amortised using effective interest rate 16,570 266

339,560 15,109

The loan facility to Cicima Property Management Solutions (Pty) Ltd - Erf 1686 comprises of a interest-free loan ofR1,500,000 and interest-bearing loan of R10,611,300. The interest-free facility is for ten-years and is repayable in monthlyinstalments commencing in February 2021. The interest-bearing facility bears interest at a staggered JIBAR plus 0.5% ratewhich has not yet commenced. The nominal value of the loan is R891,986 ( 2016: R30,734). The loan is secured by amortgage bond over Erf 1686 Benoni.

Certum Estate 130 (Pty) Ltd- Erf 564, Bertrams, JHBLoan amount 8,166,358 5,812,219Prior years current-term portion reversed 278,045 -Advance - 2,319,936Interest earned 729,049 575,403Short-term payments received (1,249,000) -

29



113




3. Loans to (from) economic entities (continued)Social benefit adjustment - (324,414)Interest amortised using effective interest rate 144,286 117,155Impairment - (55,896)Current-term portion transferred to current assets (301,292) (278,045)

7,767,446 8,166,358

The loan facility to Certum Estate 130 (Pty) Ltd - Erf 564, Bertrams, JHB comprises of an interest-bearing loan ofR9,097,665. The interest-bearing facility is for fifteen-years and bears interest at a staggered JIBAR plus 0.5% rate. Thecapital is repayable and has commenced. The nominal value of the loan is R9,139,152 (2016: R9,659,102). The loan issecured by a mortgage bond over Erf 233 Kempton Park. The loan was renegotiated in the prior year and the moratoriumon payments was extended as there were delays in construction. This has resulted in an impairment of the loan. (Refer tonote 20).

Clare Water (Pty) Ltd - Erf 1509 Discovery, RoodepoortLoan amount 4,466,357 4,103,985Prior years current-term portion reversed 11,999 46,822Advance 799,549 -Interest earned 346,252 244,081Social benefit adjustment (106,421) -Short-term payments received (69,000) -Interest amortised using effective interest rate 155,309 161,999Impairment (520,502) (78,531)Current-term portion transferred to current assets (69,245) (11,999)

5,014,298 4,466,357

The facility to Clarewater (Pty) Ltd - Erf 1509 Discovery, Roodepoort comprises of a interest-free loan of R1,529,071 andinterest-bearing loan of R3,496,537. The interest-free facility is for fourteen years and is repayable in five equal instalmentscommencing in December 2017. The interest-bearing facility is for twenty-five years and bears interest at a staggeredJIBAR rate and is repayable in annual instalments commencing which commence in June 2016. The nominal value of theloan is R6,601,855 (2016: R5,525,055 ). The loan is secured by a mortgage bond over Erf 1509 Discovery, Roodepoort.The loan was restructured and the moratorium on payments was extended. This resulted in an impairment of the loan.(Refer to note 20).

Clidet No. 1024 (Pty) Ltd - 44 WanderersLoan amount 5,498,917 5,053,224Prior years current-term portion reversed 74,603 -Interest earned 444,383 426,479Social benefit adjustment (810,377) -Interest amortised using effective interest rate 144,029 93,817Impairment (73,333) -Current-term portion transferred to current assets - (74,603)

5,278,222 5,498,917

The twenty-five year loan facilities to Clidet No. 1024 (Pty) Ltd comprise of a junior loan of R6,657,500 and a senior loan ofR11,624,400. The junior loan bears interest at a staggered JIBAR rate and is repayable in monthly instalmentscommencing in July 2017. The senior loan has not commenced. The nominal value of the loan is R7,428,686 ( 2016:R6,984,304). The loan is secured by a mortgage bond over Erf 2043, 2044 & 5070 Joubert Park. The loan wasrestructured in the current and prior year's and the moratorium on payments was extended. This resulted in an impairmentof the loan. (Refer to note 20).

Comu Property Developers CC - 3103 Glen MaraisLoan amount 5,130,075 5,081,737Prior years current-term portion reversed 200,406 -Interest earned 357,784 322,605Short-term payments received (749,684) (246,000)Impairment (30,458) (11,560)Interest amortised using effective interest rate 195,064 183,699Current-term portion transferred to current assets (194,908) (200,406)

4,908,279 5,130,075

30



114





The loan facility to Comu Property Developers CC comprises of an interest-free loan of R1,711,897 and interest-bearingloan of R4,495,127. The interest-free facility is for nine-years and is repayable in five equal instalments commencing in May2019. The interest-bearing facility bears interest at a staggered JIBAR rate and is repayable in annual instalments whichhave commenced. The nominal value of the loan is R6,177,925 ( 2016: R6,569,825). The loan is secured by a mortgagebond over Erf 3103 Glen Marais Kempton Park. The loan was in arrears which has resulted in an impairment. (Refer tonote 20).

Comocap (Pty) Ltd - 88 Relly StreetLoan amount 1,072,284 1,973,720Prior years provision for doubtful debts reversed 1,072,282 -Interest earned 320,281 261,569Short-term payments received - (28,416)Interest amortised using effective interest rate (53,792) (55,626)Impairment (40,876) (6,680)Provision for doubtful debts (1,185,090) (1,072,283)

1,185,089 1,072,284

The fifteen-year loan facility of R2,000,000 to Comocap (Pty) Ltd - 88 Relly Street bears interest at staggered JIBAR rateplus 1% and is repayable in monthly instalments which should have commenced. The nominal value of the loan isR2,774,829 ( 2016: R2,220,443). The loan is secured by a mortgage bond over Erf 1232 Pretoria. The loan is in arrearswhich has resulted its impairment. (Refer to note 20). The GPF was provided for the loan as a doubtful debt due to breachof contract and the company being in business rescue. Management asses the probability of recovery as 50% thereforehalf of the whole loan has been provided for. (Refer to note 31).

Crimson Clover Trading 11 (Pty) Ltd - Ascot Fashion HouseLoan amount 3,543,350 3,825,416Prior years current-term portion reversed 152,570 159,935Interest earned 302,901 268,638Short-term payments received (374,000) (654,296)Interest amortised using effective interest rate 95,813 96,227Current-term portion transferred to current assets (197,280) (152,570)

3,523,354 3,543,350

The twenty-year loan facility of R4,564,500 to Crimson Clover Trading 11(Pty) Ltd bears interest at a staggered JIBAR rateand is repayable in monthly instalments which have commenced. The nominal value of the loan is R4,113,631 ( 2016:R4,184,730). The loan is secured by a mortgage bond over Erf 947 & 948 Johannesburg.

DNM Estate (Pty) Ltd - Erf 517 & 518 City and SuburbanLoan amount 6,536,681 9,025,441Prior years loan and receivables transferred to current assets held for tradingreversed

10,564,264 -

Advance 368,500 7,051,930Interest earned 1,686,373 1,200,846Short-term payments received (411,000) -Social benefit adjustment (187,961) (283,261)Interest amortised using effective interest rate 199,548 159,971Impairment (34,082) (53,982)Loan and receivables transferred to current assets held for trading (10,932,764) (10,564,264)Provision for doubtful debts (3,115,825) -

4,673,734 6,536,681

31



115





The loan facility to DNM Estate (Pty) Ltd - Erf 517 & 518 City and Suburban comprises of a interest-free loan of R1,409,500,junior interest-bearing loan of R4,941,500 and senior interest-bearing loan of R9,626,500. The interest-free facility is fornine-years and is repayable in five equal instalments commencing in January 2019. The interest-bearing facilities are fortwenty-years. The junior interest-bearing loan bears interest at a staggered JIBAR rate and is repayable in monthly and hascommenced. The senior interest-bearing loan bears interest at prime and is repayable in monthly instalments and hascommenced. The nominal value of the loan is R20,563,063 (2016: R18,833,289). The loan is secured by a mortgage bondover Erf 517 & 518 City and Suburban. The GPF has concluded an agreement with a senior funder to purchase the seniorportion of this loan. This portion was transferred to loans and receivables assets held for trading. (Refer to note 5). Theloan was in arrears which has resulted in an impairment. (Refer to note 20). The loan was provided for as a doubtful debtdue to breach of contract. Management asses the probability of recovery as 40% therefore 40% of the loan has beenprovided for (Refer to note 31).

Eagle Valley Property 41 (Pty) Ltd Phase 1 - Portion 1 of Erf 1908 ErasmusLoan amount 5,699,928 12,755,322Prior years loans and receivables transferred to current assets held for trade 7,135,762 -Interest earned 1,161,575 1,113,952Short-term payments received (1,621,478) (977,611)Social benefit adjustment (93,301) (188,481)Interest amortised using effective interest rate 158,493 132,508Loan and receivable transferred to current assets held for trade (5,993,324) (7,135,762)Current-term portion transferred to current assets (3,725) -

6,443,930 5,699,928

The loan facility to Eagle Valley Property 41 (Pty) Ltd Phase 1- Portion 1 of Erf 1908 Erasmus comprises of a interest-freeloan of R1,375,000, junior interest-bearing loan of R4,202,000 and senior interest-bearing loan of R7,829,600. The interest-free facility is for nine-years and is repayable in five equal instalments commencing in May 2019. The interest-bearingfacilities are for twenty-years. The junior loan bears interest at a staggered JIBAR rate and repayments which havecommenced. The senior loan bears interest at prime and payments which have commenced. The nominal value of the loanis R13,778,786 (2016: R14,201,220). The loan is secured by a mortgage bond over Erf 517 & 518 City and Suburban. TheGPF has concluded an agreement with a senior funder to purchase the senior portion of this loan. This portion wastransferred to loans and receivables assets held for trading. (Refer to note 5).

Eagle Valley Property 41 (Pty) Ltd Phase 2 - Portion 1 of Erf 1908 ErasmusLoan amount 5,442,733 5,109,837Prior years loan and receivables transferred to current assets held for tradingreversed

7,750,136 -

Advance - 7,509,987Interest earned 1,256,891 987,987Short-term payments received (1,737,593) (129,567)Social benefit adjustment (130,644) (365,695)Interest amortised using effective interest rate 104,408 80,320Loan and receivables transferred to current assets held for trading (6,585,477) (7,750,136)Current-term portion transferred to current assets (62,038) -

6,038,416 5,442,733

The loan facility to Eagle Valley Property 41 (Pty) Ltd Phase 2- Portion 1 of Erf 1908 Erasmus comprises of a interest-freeloan of R625,000, junior interest-bearing loan of R5,345,800 and senior interest-bearing loan of R8,306,300. The interest-free facility is for nine-years and is repayable in monthly instalments which commence in April 2020. The interest-bearingfacilities are for twenty-years. The junior loan bears interest at a staggered JIBAR rate and is repayments havecommenced. The senior loan bears interest at prime and repayments have commenced. The nominal value of the loan isR14,127,728 (2016: R14,579,4565). The loan is secured by a mortgage bond over Erf 517 & 518 City and Suburban. Theloan is secured by a mortgage bond over Erf 517 & 518 City and Suburban. The GPF has concluded an agreement with asenior funder to purchase the senior portion of this loan. This portion was transferred to loans and receivables assets heldfor trading. (Refer to note 5).

EGC Properties CC - Browning StreetLoan amount - 312,467Advance 7,776,398 -Interest earned 465,213 9,351Social benefit adjustment (1,129,423) (358,686)Interest amortised using effective interest rate method 73,398 36,868

32



116




3. Loans to (from) economic entities (continued)Current-term portion transferred to current assets (138,354) -

7,047,232 -

The fifteen-year loan facility to EGC Properties CC - Browning Street comprises of an interest-bearing loan of R9,104,207.The loan was repaid. The loan bears interest at JIBAR plus 0.5%. The loan was secured by a mortgage bond over Erf 103,104 and 106 Browning Street. The nominal value of the loan is R8,241,611 (2016: RNil).

Echo Canyon Trading (Pty) Ltd - 463 and 465 Hanny StreetLoan amount 4,865,350 -Advance - 5,203,194Interest earned 468,669 213,143Social benefit adjustment - (584,208)Interest amortised using effective interest rate 68,748 33,221Impairment (27,095) -Current-term portion transferred to current assets (26,257) -

5,349,415 4,865,350

The fifteen-year loan facility to Echo Canyon Trading (Pty) Ltd - 463 and 465 Hanny Street comprises of an interest-bearingloan of R5,500,000. The loan bears interest at JIBAR plus 1% and is repayable in monthly instalments commencing inSeptember 2016. The loan is secured by a mortgage bond over Erf 274 and portion1 of Erf 815 Pretoria Gardens. Thenominal value of the loan is R5,885,006 (2016: R5,416,337). The loan was impaired as it requires an additional moratoriumdue to delays in construction. (Refer to note 20).

Erf 85 Newtown CC - Browning StreetAdvance 3,159,423 -Interest earned 205,199 -Social benefit adjustment (265,095) -Interest amortised using effective interest rate 7,558 -Current-term portion transferred to current assets (22,125) -

3,084,960 -

The twenty-year loan facility to Erf 85 Newtown CC - Browning Street comprises of an interest-bearing loan of R3,159,423.The loan bears interest at JIBAR plus 2 and is repayable in monthly instalments commencing in May 2017. The loan issecured by a mortgage bond over Portion 269 of Erf 269 Richmond Johannesburg. The nominal value of the loan isR3,364,622 (2016: RNil).

Erf 273 Parktown Estate CC - Parktown Place DevelopmentLoan amount 6,575,880 6,671,482Prior years current-term portion reversed 107,043 -Interest earned 607,804 574,691Short-term payments received (828,500) (645,686)Interest amortised using effective interest rate 115,189 82,436Current-term portion transferred to current assets (117,083) (107,043)

6,460,333 6,575,880

The twenty-year loan facility of R7,353,384 to Erf 273 Parktown Estate CC - Parktown Place Development bears interest ata staggered JIBAR rate plus 0.5% and is repayable in monthly instalments which have commenced. The nominal value ofthe loan is R7,694,263 (2016: R7,914,958). The loan is secured by a mortgage bond over Erf 56 and 57 Parktown Estate,Tshwane.

Fundzo Trading (Pty) Ltd - Portion 15 of Erf 8489 Protea NorthLoan amount 5,129,311 1,806,756Advance 770,651 3,642,224Interest earned 366,800 169,680Social benefit adjustment (128,000) (620,439)Impairment (123,274) (11,999)Interest amortised using effective interest rate 175,982 143,089

6,191,470 5,129,311

33



117





The loan facility to Fundzo Trading (Pty) Ltd - Portion 15 of Erf 8489 Protea North comprises of a interest-free loan ofR1,800,000 and interest-bearing loan of R5,907,200. The interest-free facility is for nine-years and is repayable in five equalinstalments commencing in December 2018. The interest-bearing facility is for twenty-years and bears interest at astaggered JIBAR rate. The interest-bearing facilities capital is repayable in annual instalments which commence in April2016. The nominal value of the loan is R7,659,723 (2016: R6,522,272). The loan is secured by a mortgage bond overportion 14 of Erf 8489, Protea Glen, Ext 11. The loan was impaired as it requires an additional moratorium due to delays inconstruction. (Refer to note 20).

FV Trading Enterprises (Pty) Ltd - Erf 193 DuncanvilleLoan amount 1,042,295 -Advance 2,583,491 1,732,689Interest earned 113,582 906Social benefit adjustment (416,776) (744,471)Interest amortised using effective interest rate method 94,280 53,171

3,416,872 1,042,295

The loan facility to FV Trading Enterprises (Pty) Ltd - Erf 193 Duncanville comprises of a interest-free loan of R1,427,200and interest-bearing loan of R8,572,200. The interest-free facility is for ten-years and has commences in June 2020. Theinterest-bearing facility is for twenty-years and bears interest at a staggered JIBAR rate plus 0.5% and is repayable inmonthly instalments commencing in October 2017. The interest-bearing facility has not yet commenced. The nominal valueof the loan is R4,430,668 (2016: R1,733,536). The loan is secured by a mortgage bond over Erf 193 Duncanville.

Golden City Property (Pty) Ltd - Erf 533 & 534 GermistonLoan amount 1,273,318 -Advance 1,516,202 1,265,000Interest earned 207,767 8,318Current-term portion transferred to current assets (48,977) -

2,948,310 1,273,318

The twenty-year loan facility of R3,941,555 to Golden City Properties (Pty) Ltd bears interest at a staggered prime plus0.5% rate and the capital is repayable in monthly instalments commencing April 2017. The nominal value of the loan isR2,997,287 ( 2016:R1,270,734). The loan is secured by a mortgage bond over Erf 533 & 534 Germiston.

Goldburg Property Development (Pty) Ltd - Erf 72 Kempton ParkAdvance 3,895,859 -Interest earned 104,931 -Social benefit adjustment (591,943) -Interest amortised using effective interest rate 8,025 -

3,416,872 -

The twenty-year loan facility of R3,741,455 to Goldburg Property Development (Pty) Ltd - Erf 72 Kempton Park bearsinterest at JIBAR rate plus 1% and is repayable in monthly instalments which commence in November 2017. The nominalvalue of the loan is R4,000,790 (2016: RNil). The loan is secured by a mortgage bond over Erf 72 Kempton Park.

GNI Real Estate - Erf 113 Pretoria NorthLoan amount 595,492 -Advance 10,158,572 1,211,316Interest earned 418,564 -Social benefit adjustment (1,063,786) (628,066)Interest amortised using effective interest rate 109,918 12,242Loan and receivable transferred to current assets held for trade (5,858,488) -

4,360,272 595,492

34



118





The loan facility to GNI Real Estate - Erf 113 Pretoria North comprises of a interest-free loan of R2,000,000 and interest-bearing loan of R3,748,000. The interest-free facility is for ten-years and has commences in February 2021. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBAR rate plus 0.5% and is repayable in monthlyinstalments which has not yet commenced. The interest-bearing facility has not yet commenced. The nominal value of theloan is R11,788,450 (2016: R1,211,316). The loan is secured by a mortgage bond over Erf 113 Pretoria North. The GPFhas concluded an agreement with a senior funder to purchase the senior portion of this loan. This portion was transferred toloans and receivables assets held for trading. (Refer to note 5).

Hoewe 15 Doreg Landbouhoewes (Pty) Ltd - Portion 484 (a portion of portion125) of the farm Hartebeeshoek 303, GautengAdvance 7,971,347 -Interest earned 129,147 -Social benefit adjustment (1,342,443) -Interest amortised using effective interest rate 16,196 -

6,774,247 -

The twenty-year loan facility of R16,608,288 to Hoewe 15 Doreg Landbouhoewes (Pty) Ltd - Portion 484 (a portion ofportion 125) of the farm Hartebeeshoek 303, Gauteng bears interest at a staggered JIBAR rate plus 0.5% and is repayablein monthly instalments which commence in May 2018. The nominal value of the loan is R8,100,493 (2016: RNil). The loanis secured by a mortgage bond over Portion 484 (a portion of portion 125) of the farm Hartebeeshoek 303, Gauteng.

Highlands Urban Living (Pty) Ltd - Highlands LoftsLoan amount 3,847,636 7,127,718Prior years current-term portion reversed 3,847,636 205,744Interest earned 946,935 985,273Short-term payments received (2,299,000) (400,000)Impairment 19,356 (8,553)Interest amortised using effective interest rate (91,343) (214,911)Provision for doubtful debts (3,135,610) (3,847,635)

3,135,610 3,847,636

The fifteen-year loan facility of R7,015,594 to Highlands Urban Living (Pty) Ltd bears interest at a staggered JIBAR rateplus 2% and the is repayable in monthly instalments that have commenced. The nominal value of the loan is R6,917,422(2016: R8,269,486). The loan is secured by a mortgage bond over Erf 3 & 4 Highlands, Johannesburg. The loan was inarrears which resulted in an impairment. (Refer to note 20). A portion of the provision for bad debts was reversed asManagement assessed the probability of recovery as 50% and therefore half the loan has been provided for. (Refer to note31). The loan was in arrears which has resulted in an impairment. (Refer to note 20).

Ikamvelihle Trading Enterprises CC - Erf 953-956 BereaLoan amount 4,371,901 2,030,736Advance 833,000 2,591,909Interest earned 290,072 187,722Social benefit adjustment (149,564) (526,056)Interest amortised using effective interest rate method 171,949 152,517Impairment (147,720) (64,927)

5,369,638 4,371,901

The loan facility to Ikamvelihle Trading Enterprises CC comprises of a interest-free loan of R1,855,000 and interest-bearingloan of R3,489,757. The interest-free facility is for nine-years and is repayable in five equal instalments commencing in July2018. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBAR rate and is repayable inmonthly instalments which commence in November 2016. The nominal value of the loan is R6,772,489 (2016: R5,649,417).The loan is secured by a mortgage bond over Erf 953-956 Berea. The loan was impaired in the prior year as it required anadditional moratorium due to delays in construction. (Refer to note 20).

Indigo Kulani Properties (Pty) Ltd - Erf 1676 BenoniLoan amount 5,192,178 4,360,187Prior years current-term portion reversed 87,098 -Advance 3,157,304 892,651Interest earned 649,542 401,058Short-term payments received (278,383) (309,733)

35



119




3. Loans to (from) economic entities (continued)Social benefit adjustment (528,073) (165,001)Interest amortised using effective interest rate 131,744 100,114Current-term portion transferred to current assets (149,349) (87,098)Impairment (91,144) -

8,170,917 5,192,178

The loan facility of R6,090,272 to Indigo Kulani Properties (Pty) Ltd - Erf 1676 Benoni bears interest at a staggered JIBARrate is repayable in monthly instalments which have commenced. The nominal value of the loan is R9,902,757 (2016:R6,374,294). The loan is secured by a mortgage bond over Erf 1676 Benoni. The loan was impaired as it requires anadditional moratorium due to delays in construction. (Refer to note 20).

Ifizo (Pty) Ltd - Erf 733 Pretoria NorthLoan amount 11,809 -Advance - 23,827Social benefit adjustment - (12,375)Interest amortised using effective interest rate 1,204 357

13,013 11,809

The loan of R4,634,100 to Ifizo (Pty) Ltd - Erf 733 Pretoria North comprises of a interest-free loan of R1,000,000 and juniorinterest-bearing loan of R3,634,100. The interest-free facility is for ten-years and is repayable in monthly instalmentscommencing in January 2021.The junior interest-bearing facility is for twenty-years and bears interest at a staggeredJIBAR rate. The junior interest-bearing facility has not yet commenced. The loan is secured by a mortgage bond over Erf733 Pretoria North. The nominal value of the loan is R273,827 (2016: R23,827).

Korema Property Group (Pty) Ltd - Erf 436 & 437 Bellevue East, JHBAdvance 1,074,769 -Social benefit adjustment (578,993) -Interest amortised using effective interest rate 39,362 -

535,138 -

The loan facility to Korema Property Group (Pty) Ltd - Erf 436 & 437 Bellevue comprises of a interest-free loan ofR1,350,000 and an interest-bearing loan of R2,047,400. The interest-free facility is ten-years and is repayable in monthlyinstalments commencing in May 2021. The interest-bearing facility has not yet commenced. The nominal value of the loanis R1,306,310 (2016: RNil). The loan is secured by a mortgage bond over Erf 436 & 437 Bellevue.

KDM Properties (Pty) Ltd - Erf 403 JohannesburgLoan amount 3,909,676 4,015,180Prior years current-term portion reversed 136,528 -Interest earned 354,317 324,814Short-term payments received (560,000) (362,000)Interest amortised using effective interest rate 72,483 68,210Current-term portion transferred to current assets (150,409) (136,528)

3,762,595 3,909,676

The fifteen-year loan facility of R4,564,540 to KDM Properties (Pty) Ltd - Erf 403 bears interest at a staggered JIBAR rateplus 0.5% and is repayable in monthly instalments which commenced. The nominal value of the loan is R4,438,025 ( 2016:R4,643,707). The loan is secured by a mortgage bond over Erf 403 Johannesburg.

Kertrade CC - Erf 564 & 566 SpringsLoan amount 6,284,828 -Advance - 7,079,460Interest earned 609,077 426,485Social benefit adjustment - (1,283,627)Interest amortised using effective interest rate 87,897 62,510Impairment (48,581) -Current-term portion transferred to current assets (36,654) -

6,896,567 6,284,828

36



120





The twenty-year loan facility of R7,099,130 to Kertrade CC bears interest at a staggered JIBAR rate plus 1% and isrepayable in monthly instalments which should have commenced in December 2016. The nominal value of the loan isR8,115,021 (2016: R7,505,945). The loan is secured by a mortgage bond over Erf 564 & 566 Springs. The loan wasimpaired in the prior year as it required an additional moratorium due to delays in construction. (Refer to note 20).

Kimovax (Pty) Ltd - Erf 419 and Erf 420 Cresslawn, Kempton ParkLoan amount 689,800 -Advance 874,691 1,399,166Interest earned 16,393 -Social benefit adjustment (218,861) (720,165)Interest amortised using effective interest rate 75,757 10,799

1,437,780 689,800

The loan of R4,634,100 to Kimovax (Pty) Ltd - Erf 419 and Erf 420 Cresslawn, Kempton Park comprises of a interest-freeloan of R1,544,800 and junior interest-bearing loan of R5,541,200. The interest-free facility is for ten-years and isrepayable in monthly instalments commencing in March 2021.The junior interest-bearing facility is for twenty-years andbears interest at a staggered JIBAR plus 0.5% rate. The junior interest-bearing facility has not yet commenced. The loan issecured by a mortgage bond over - Erf 419 and Erf 420 Cresslawn, Kempton Park The nominal value of the loan isR2,290,251 (2016: R1,399,166). The loan was renegotiated and the moratorium on payments was extended resulting in animpairment of the loan. (Refer to note 20).

Johannesburg Housing Company (Pty) Ltd - 117 Pritchard StreetLoan amount 7,841,695 8,546,465Prior years current-term portion reversed 306,823 324,996Interest earned 691,442 656,172Short-term payments received (1,484,432) (1,568,534)Interest amortised using effective interest rate 180,883 189,419Current-term portion transferred to current assets (327,492) (306,823)

7,208,919 7,841,695

The fifteen-year loan facility of R11,175,110 to Johannesburg Housing Company (Pty) Ltd bears interest at a staggeredJIBAR rate plus 0.5% and is repayable in monthly instalments which have commenced. The nominal value of the loan isR8,413,959 ( 2016: R9,206,949). The loan is secured by a mortgage bond over Erf 4453 City of Johannesburg.

Johannesburg Housing Company (Pty) Ltd - Crest HotelLoan amount 10,294,857 11,332,313Prior period current-term portion reversed 404,054 423,070Interest earned 903,670 867,148Short-term payments received (2,087,156) (2,172,234)Interest amortised using effective interest rate 234,722 248,614Current-term transferred to current assets (415,528) (404,054)

9,334,619 10,294,857

The fifteen-year loan facility of R14,792,032 to Johannesburg Housing Company (Pty) Ltd bears interest at a staggeredJIBAR rate plus 0.5% and is repayable in monthly instalments which have commenced. The nominal value of the loan isR10,915,014 ( 2016: R12,098,499). The loan is secured by a mortgage bond over Erf 212, 214 & 216 City ofJohannesburg.

Johannesburg Housing Company (Pty) Ltd - HlangananiLoan amount 9,610,425 10,746,948Prior years short-term portion reversed 816,463 827,083Interest earned 445,022 373,015Short-term payments received (2,045,690) (2,136,619)Interest amortised using effective interest rate method 564,316 616,461Current-term portion transferred to current assets (877,283) (816,463)

8,513,253 9,610,425

37



121





The fifteen-year loan facility of R20,000,000 to Johannesburg Housing Company (Pty) Ltd bears interest at prime less 7%and is repayable in monthly. Payments have commenced . The nominal value of the loan is R11,856,602 (2016:R12,098,499). The loan is secured by a mortgage bond over Erg 15604, Cosmo City Extension 6.

Kesef Properties (Pty) Ltd - Erf 343,344,345,346,347,348,387,388 and 389 NewDoornfontein JohannesburgLoan amount 13,576,434 -Advance - 15,296,713Interest earned 1,274,345 542,232Social benefit adjustment - (2,360,355)Interest amortised using effective interest rate 218,666 97,844Short-term payments received (815,133) -Current portion transferred to current assets (464,234) -

13,790,078 13,576,434

The fifteen-year loan of R16,635,173 to Kesef Properties (Pty) Ltd - Erf 343,344,345,346,347,348,387,388 and 389 NewDoornfontein Johannesburg bears interest at a staggered JIBAR plus 0.5% per annum and is repayable in monthlyinstalments commencing in November 2016. The nominal value of the loan is R16,298,156 (2016: R15,838,945). The loanis secured over Erf 343,344,345,346,347,348,387,388 and 389 New Doornfontein Johannesburg.

KTN Properties (Pty) Ltd - Parklane HotelLoan amount 76,068 318,956Prior period current-term portion reversed 43,545 111,839Interest earned 1,074 17,446Short-term payments received (145,106) (351,500)Interest amortised using effective interest rate method 24,419 22,872Current portion transferred to current assets - (43,545)

- 76,068

The ten-year loan facility of R1,944,000 to KTN Property Management (Pty) Ltd beared interest at a rate of prime less3.75% and has been fully repaid. The nominal value of the loan is RNil (2016: R144,031) as the loan was fully repaid. Theloan is secured by a mortgage bond over Erf 4604 Johannesburg Township.

Lakeside Developments (Pty) Ltd - Erf 1373 LeachvilleLoan amount 896,381 -Advance 439,843 1,560,506Interest earned 38,988 3,268Social benefit adjustment (69,391) (700,607)Interest amortised using effective interest rate 71,496 33,214

1,377,317 896,381

The ten-year loan facility of R11,101,100 to Lakeside Developments (Pty) Ltd - Erf 1373 Leachville comprises of a interest-free loan of R1,283,300, junior interest-bearing loan of R3,311,100 and a senior loan of R6,441,700. The interest-freefacility is for ten-years and repayments commence in September 2020. The junior interest-bearing facility bears interest at astaggered JIBAR rate and repayments commence is August 2017. The senior interest bearing loan bears interest at primeplus 1% and has not yet commenced. The nominal value of the loan is R2,042,605 (2016: R1,563,544). The loan issecured by a mortgage bond over Erf 1373 Leachville.

Landopoint (Pty) Ltd - Erf 905, 906 and 907 KenilworthLoan amount 1,847,630 1,534,038Advance 193,626 297,100Interest earned 108,635 87,995Social benefit adjustment (80,559) (129,241)Interest amortised using effective interest rate 96,356 66,728Impairment (19,373) (8,990)Provision for doubtful debts (1,073,158) -

1,073,157 1,847,630

38



122





The loan of R11,157,024 to Landopoint (Pty) Ltd - Erf 905, 906 and 907 Kenilworth comprises of a interest-free loan ofR1,516,128, junior interest-bearing loan of R2,861,826 and senior interest-bearing loan of R6,629,070. The interest-freeloan is for ten-years and is repayable in annual instalments commencing in June 2019. The interest-bearing facilities are fortwenty-years. The junior interest-bearing facility bears interest at a staggered JIBAR plus 0.5% rate and is repayable inmonthly instalments which should have commenced. The senior interest-bearing facility bears interest at prime and has notyet commenced. The loan is secured by a mortgage bond over Erf 905, 906 and 907 Kenilworth. The loan was impaireddue to breach of contract. (Refer to note 20).The GPF provided for the loan as a doubtful debt. Management assess theprobability of recovery as 50% therefore half the whole loan has been provided for. (Refer to note 31). The nominal value ofthe loan is R2,766,605 (2016: R2,464,343).

Lisinfo 282 Property (Pty) Ltd - Erf 1952 MalvernLoan amount 3,532,393 3,381,580Interest earned 257,806 233,363Short-term payments received (543,494) (212,667)Interest amortised using effective interest rate 136,452 130,117Current-term portion transferred to current assets (165,665) -

3,217,492 3,532,393

The loan facility to Lisinfo 282 Property (Pty) Ltd comprises of a interest-free loan of R969,000 and interest-bearing loan ofR3,399,161. The interest-free facility is for nine-years and is repayable in five equal instalments commencing in March2018. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBAR rate The interest-bearingfacilities capital is repayable in monthly instalments which have commenced. The nominal value of the loan is R4,387,958 (2016: R4,673,646). The loan is secured by a mortgage bond over Erf 1952, Malvern, Johannesburg.

Lukataedi (Pty) Ltd - Erf 739 Pretoria NorthLoan amount 8,533,671 3,862,780Prior years loan and receivables transferred to current assets held for tradingreversed

5,306,942 -

Advance 849,377 10,029,018Interest earned 1,448,905 642,234Short-term payments received (1,174,000) -Social benefit adjustment (88,948) (826,999)Interest amortised using effective interest rate 132,868 175,464Impairment (179,185) (41,884)Current-term portion transferred to current assets (31,809) -Loan and receivables transferred to current assets held for trading (5,515,114) (5,306,942)

9,282,707 8,533,671

The loan facility to Lukataedi (Pty) Ltd - Erf 739 Pretoria North comprises of a interest-free loan of R1,518,800, juniorinterest-bearing loan of R8,216,000 and a senior loan of R6,224,400. The interest-free facility is for nine-years and isrepayable in five equal instalments commencing in September 2019. The interest-bearing facility is for twenty-years andbears interest at a staggered JIBAR plus .05% rate. The senior interest-bearing facility is for twenty-years and bearsinterest at prime. The junior and senior interest-bearing facilities repayments commence in May 2016. The nominal value ofthe loan is R16,935,498 (2016: R15,805,702). The loan is secured by a mortgage bond over Erf 739 Pretoria North. Theloan was renegotiated in the prior year and the moratorium on payments was extended as there were delays inconstruction. The loan is in arrears resulting in the impairment of the loan. (Refer to note 20). The GPF has concluded anagreement with a senior funder to purchase the senior portion of this loan. This portion was transferred to loans andreceivables assets held for trading. (Refer to note 5).

Madulamoho Housing Association - Allenby HouseLoan amount 1,767,817 1,914,516Prior period current-term portion reversed 196,710 186,301Interest earned 139,577 131,896Short-term payments received (347,000) (328,000)Interest amortised using effective interest rate 58,402 59,814Current-term portion transferred to current assets (207,018) (196,710)

1,608,488 1,767,817

39



123





The fifteen-year loan facility of R3,270,000 to Madulamoho Housing Association bears interest at a rate of prime less 4%per annum and is repayable in fourteen equal instalments which have commenced. The nominal value of the loan is R2,059,303 (2016: R 2,266,725). The loan is secured by a mortgage bond over Erf 4880 Hillbrow, Johannesburg Township.

Madulamoho Housing Association - Fleurhof ViewsLoan amount 16,454,627 17,082,093Prior years current-term portion reversed 1,307,240 1,448,164Interest earned 1,332,977 1,238,442Short-term payments received (2,514,000) (2,424,000)Interest amortised using effective interest rate 466,209 417,168Current-term portion transferred to current assets (1,628,479) (1,307,240)

15,418,574 16,454,627

The fifteen-year loan facility of R23,345,378 to Madulamoho Housing Association bears interest at a staggered JIBAR rateand is repayable in fifteen annual instalments which have commenced. The nominal value of the loan is R18,043,454(2016: R19,224,477). The loan is secured by a mortgage bond over Erf 691 to 698 Fleurhof Extension two.

Madulamoho Housing Association - JabulaniLoan amount 18,489,818 19,201,905Prior year current-term portion reversed 714,055 711,982Interest earned 1,555,005 1,403,152Short-term payments received (2,750,000) (2,616,000)Interest amortised using effective interest rate 497,484 502,834Current-term portion transferred to current assets (788,816) (714,055)

17,717,546 18,489,818

The fifteen-year loan facility of R24,578,202 to Madulamoho Housing Association bears interest at a staggered JIBAR rateand is repayable in monthly instalments which have commenced. The nominal value of the loan is R20,837,308 (2016:R22,032,303). The loan is secured by a mortgage bond over Erf 2605 Jabulani, Soweto, Johannesburg.

Makabongwe Property Holding (Pty) Ltd - Erf 983 JohannesburgLoan amount 4,985,083 -Prior years loans and receivables transferred to current assets held for tradingreversed

4,914,327 -

Advance 4,855,170 10,702,408Interest earned 1,603,701 218,534Social benefit adjustment (183,153) (1,045,873)Interest amortised using effective interest rate 71,074 24,341Impairment (50,712) -Current-term portion transferred to current assets (31,032) -Loans and receivables transferred to current assets held for trading (9,591,786) (4,914,327)

6,572,672 4,985,083

The twenty-year loan facility to Makabongwe Property Holding (Pty) Ltd - Erf 983 Johannesburg comprises of a juniorinterest-bearing facility of R5,488,088 and senior interest-bearing facility of R8,892,150. The junior loan bears interest at astaggered JIBAR rate plus 0.5% and is repayable in monthly instalments commencing in November 2016. The senior loanbears interest at prime plus 10.5% and is repayable in monthly instalments commencing in January 2017. The nominalvalue of the loan is R17,382,527 (2016: R10,920,943). The loan is secured by a mortgage bond over Erf 983Johannesburg. The GPF has concluded an agreement with a senior funder to purchase the senior portion of this loan. Thisportion was transferred to loans and receivables assets held for trading. (Refer to note 5). The loan was in arrears whichhas resulted in an impairment. (Refer to note 20)

Mahlahla Advanced Dynamics CC - Erf 442 Wolmer PretoriaLoan amount 1,409,220 -Advance 13,471,888 2,268,210Interest earned 809,591 6,547Social benefit adjustment (821,546) (873,474)Interest amortised using effective interest rate 110,090 7,937Loans and receivables held for trade (9,102,998) -

5,876,245 1,409,220

40



124





The loan facility to Mahlahla Advanced Dynamics CC - Erf 442 Wolmer Pretoria comprises of a interest-free loan ofR1,300,000 and an interest-bearing loan of R5,337,100. The interest-free facility is for ten-years and is repayable inmonthly instalments commencing in March 2021. The interest-bearing facility is for twenty-years and bears interest at astaggered JIBAR plus .05% rate and repayments commence in September 2017. The nominal value of the loan isR16,556,238 (2016: R2,274,757). The loan is secured by a mortgage bond over Erf 442 Wolmer Pretoria. The GPF hasconcluded an agreement with a senior funder to purchase the senior portion of this loan. This portion was transferred toloans and receivables assets held for trading. (Refer to note 5).

Masiszane Group (Pty) Ltd - Portion 0 of Erf 2909 JeppestownAdvance 234,438 -Social benefit adjustment (164,330) -Interest amortised using the effective interest rate method 979 -

71,087 -

The loan facility to Masiszane Group (Pty) Ltd - Portion 0 of Erf 2909 Jeppestown comprises of a interest-free loan ofR2,000,000 and an interest-bearing loan of R2,843,600. The interest-free facility is for ten-years and is repayable inmonthly instalments commencing in March 2021. The interest-bearing facility is for twenty-years and bears interest at astaggered JIBAR plus .05% rate and has not yet commenced. The nominal value of the loan is R484,438 (2016: RNil).The loan is secured by a mortgage bond over Erf 442 Wolmer Pretoria. The GPF has concluded an agreement with asenior funder to purchase the senior portion of this loan.

Meilijian Construction and Development CC - Erf 232 Kempton ParkLoan amount 2,012,668 2,026,266Prior years current-term portion reversed 33,748 35,656Interest earned 179,516 159,534Short-term payments received (236,393) (217,000)Interest amortised using effective interest rate 41,234 41,960Impairment (3,165) -Current-term portion transferred to current assets (37,171) (33,748)

1,990,437 2,012,668

The fifteen-year loan facility of R8,997,348 to Meilijian Construction and Development CC - Erf 232 Kempton Park bearsinterest at JIBAR and is repayable in monthly instalments which have commenced. The nominal value of the loan isR2,440,684 (2016: R2,497,561). The loan is secured by a mortgage bond over Erf 232 Kempton. The loan was in arrearswhich has resulted in an impairment. (Refer to note 20).

Meilijian Construction and Development CC - Erf 24 Kempton ParkLoan amount 7,656,990 7,788,743Prior period current-term portion reversed 122,818 127,806Interest earned 706,084 631,600Impairment (13,097) -Short-term payments received (873,530) (896,000)Interest amortised using effective interest rate 126,867 127,659Current-term portion transferred to current assets (135,318) (122,818)

7,590,814 7,656,990

The twenty-year loan facility of R8,997,348 to Meilijian Construction and Development CC - Erf 24 Kempton Park bearsinterest at a staggered JIBAR rate plus 0.5% and is repayable in monthly instalments which have commenced. The nominalvalue of the loan is R9,006,032 (2016: R9,173,480). The loan is secured by a mortgage bond over Erf 24 Kempton Park.The loan was in arrears which has resulted in an impairment. (Refer to note 20).

Meilijian Construction and Development CC - Erf 1614 Kempton ParkLoan amount 8,454,218 2,390,123Advance - 5,661,786Interest earned 856,867 565,139Short-term payments received (619,792) -Social benefit adjustment - (207,123)Interest amortised using the effective interest rate method 54,198 44,294Impairment (16,614) -

41



125




3. Loans to (from) economic entities (continued)Current-term portion transferred to current assets (60,586) -

8,668,291 8,454,219

The twenty-year loan facility to Meilijian Construction and Development CC - Erf 1614 Kempton Park comprises of a juniorinterest-bearing facility of R4,075,146 and senior interest-bearing facility of R4,468,128. The junior loan bears interest at astaggered JIBAR rate plus 0.5% and is repayable in monthly instalments commencing in August 2016. The senior loanbears interest at prime and is repayable in monthly instalments commencing in August 2016. The nominal value of the loanis R9,364,782 (2016: R9,127,708). The loan is secured by a mortgage bond over Erf 1614 Kempton Park. The loan was inarrears which has resulted in an impairment. (Refer to note 20). The GPF is now funding 100% of the loan.

Meilijian Construction and Development CC - Erf 27 Kempton ParkLoan amount 8,486,353 7,709,861Interest earned 787,368 661,493Short-term payments received (793,485) -Interest amortised using effective interest rate method 135,872 114,999Impairment (14,664) -Current-term portion transferred to current assets (144,820) -

8,456,624 8,486,353

The twenty-year loan facility of R9,047,338 to Meilijian Construction and Development CC - Erf 27 Kempton Park bearsinterest at a staggered JIBAR rate plus 0.5% and is repayable in monthly instalments commencing in July 2016. Thenominal value of the loan is R10,057,749 (2016: R10,063,866). The loan is secured by a mortgage bond over Erf 27Kempton Park. The loan was in arrears which has resulted in an impairment. (Refer to note 20).

Meilijian Construction and Development CC - 3597 Pomona Ext 75Loan amount 283,178 -Advance 22,985,103 344,681Interest earned 750,270 1,633Social benefit adjustment (2,673,875) (63,320)Short-term payments received (1,954,636) -Interest amortised using effective interest rate method 113,562 184Loan and receivables transferred to current assets held for trading (5,047,629) -

14,455,973 283,178

The twenty-year loan facility of R13,065,197 to Meilijian Construction and Development CC - Erf 3597 Pomona Ext 75 bearsinterest at a staggered JIBAR rate plus 0.5% and is repayable in monthly instalments commencing in October 2017. Thenominal value of the loan is R22,156,494 (2016: R346,315). The loan is secured by a mortgage bond over Erf 3597Kempton Park.

Michaelson Investments (Pty) Ltd - Erf 658 TroyevilleLoan amount 1,441,937 1,312,490Advance - 2,352Interest earned 91,453 73,678Social benefit adjustment - (905)Interest amortised using effective interest rate method 59,214 54,322Impairment (26,219) -

1,566,385 1,441,937

The loan facility to Michaelson Investments (Pty) Ltd - Erf 658 Troyeville comprises of a interest-free loan of R895,100 andinterest-bearing loan of R4,625,000. The interest-free facility is for nine-years and is repayable in five equal instalmentscommencing in October 2018. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBAR rateand is repayable in annual instalments commencing in June 2016. The nominal value of the loan is R1,961,095 ( 2016:R1,869,643). The loan is secured by a mortgage bond over Erf 658 Troyeville, Johannesburg. The loan was renegotiatedand the moratorium on payments were extended as there were delays in construction. This resulted in an impairment of theloan. (Refer to note 20).

Multidirect Investment 8 (Pty) Ltd - Erf 1815 Pretoria NorthLoan amount 4,862,159 4,669,232Prior years current-term portion reversed 716 -Short term payments received (505,125) (240,000)

42



126




3. Loans to (from) economic entities (continued)Interest amortised using the effective interest rate method 148,756 142,767Interest earned 332,693 290,876Current-term portion transferred to current assets - (716)

4,839,199 4,862,159

The loan facility to Multidirect Investment 8 (Pty) Ltd - Erf 1815 Pretoria North comprises of a interest-free loan ofR1,428,933 and interest-bearing loan of R4,455,837. The interest-free facility is for nine-years and is repayable in five equalinstalments commencing in September 2018. The interest-bearing facility is for twenty-years and bears interest at astaggered JIBAR rate. The interest-bearing facility is repayable in monthly instalments which commenced in April 2016. Thenominal value of the loan is R5,953,856 ( 2016: R6,085,916). The loan is secured by a mortgage bond over Erf 1815,Pretoria North.

Muma Properties Investments (Pty) Ltd - Erf 978 Pretoria NorthLoan amount 8,141,428 5,012,311Prior years current-term portion transferred to current assets reversed 10,286,363 -Advance 150,000 12,859,444Interest earned 1,745,628 1,098,645Short-term payments received (1,883,561) (140,439)Social benefit adjustment (198,956) (570,696)Impairment - (22,698)Interest amortised using the effective interest rate method 233,925 191,224Loan and receivable transferred to current assets held for trade (10,261,443) (10,286,363)Current-term portion transferred to current assets (64,641) -

8,148,743 8,141,428

The loan facility to Muma Properties Investments (Pty) Ltd - Erf 978 Pretoria North comprises of a interest-free loan ofR1,480,000, junior interest-bearing loan of R6,145,400 and senior interest-bearing loan of R11,546,800. The interest-freefacility is for nine-years and is repayable in five equal instalments commencing in September 2018. The interest-bearingfacilities are for twenty-years. The junior interest-bearing facility bears interest at a staggered JIBAR rate and is repayable inannual instalments which have commenced. The senior interest-bearing facility bears interest at prime and is expected tobe bought out by a external funder. The nominal value of the loan is R20,326,437 (2016: R20,440,691). The loan issecured by a mortgage bond over Erf 978 Pretoria North. The loan was renegotiated in the prior year and the moratoriumon payments was extended as there were delays in construction. This resulted in an impairment of the loan. (Refer to note20). The GPF has concluded an agreement with a senior funder to purchase the senior portion of this loan. This portion wastransferred to loans and receivables assets held for trading. (Refer to note 5).

Nelisa Properties (Pty) Ltd - Erf 388 WindsorLoan amount 953,054 883,347Advance 3,814 21,802Interest earned 47,347 39,638Social benefit adjustment (1,287) (8,682)Interest amortised using effective interest rate 51,652 44,638Impairment (10,098) (27,689)

1,044,482 953,054

The loan facility to Nelisa Properties (Pty) Ltd - Erf 388 Windsor comprises of a interest-free loan of R1,227,800 andinterest-bearing loan of R8,189,700. The interest-free facility is for nine-years and is repayable in five equal instalmentscommencing in March 2019. The interest-bearing facility is for twenty-years and bears interest at a JIBAR plus 0.5% and isrepayable in annual instalments commencing in April 2016. The nominal value of the loan is R1,365,393 (2016:R1,314,232). The loan is secured by a mortgage bond over Erf 388 Windsor, Randburg. The loan was renegotiated andthe moratorium on payments was extended as there were delays in construction. This resulted in an impairment of the loanin the current and prior year's. (Refer to note 20).

Ninarich Trading 3 (Pty) Ltd - Betty Street PrecinctLoan amount 16,681,749 15,400,247Prior years current-term portion reversed 266,769 -Interest earned 1,534,517 1,310,382Short-term payments received (2,065,000) -Interest amortised using effective interest rate 270,903 237,889Current-term portion transferred to current assets (291,577) (266,769)

16,397,361 16,681,749

43



127





The twenty-year loan facility of R17,766,740 to Ninarich Trading 3 (Pty) Ltd - Betty Street Precinct is interest-bearing atJIBAR plus 0.5% staggered and is repayable in monthly instalments commencing in April 2016. The nominal value of theloan is R19,405,483 (2016: R19,735,965). The loan is secured by a mortgage bond over Erf 2,3,4,12,105-106,413 BettyStreet, Erf 22 Auret Street and Erf 173 Park Street New Doornfontein, Gauteng Province.

NBLR Properties (Pty) Ltd - Erf 2551, 2552 &2553 Fleurhof Ext 20Loan amount 5,913,944 -Advance 17,925,382 8,126,692Interest received 1,959,345 90,121Social benefit adjustment (405,865) (2,348,246)Impairment (32,937) -Interest amortised using the effective interest rate method 182,253 45,377Loans and receivables held for trade (17,120,626) -

8,421,496 5,913,944

The loan facility to NBLR Properties (Pty) Ltd - Erf 2551, 2552 &2553 Fleurhof Ext 20 comprises of a interest-free loan ofR2,000,000 and interest-bearing loan of R8,931,447. The interest-free facility is for ten-years and is repayable in monthlyinstalments commencing in January 2021. The interest-bearing facility is for twenty-years and bears interest at a JIBAR rateand is repayable in monthly instalments commencing in January 2017. The nominal value of the loan is R28,101,201 (2016:R8,216,473). The loan is secured by a mortgage bond over Erf 2551,2552 &2553 Fleurhof Ext 20. The was renegotiatedand the moratorium on payments was extended as there were delays in construction. This resulted in an impairment of theloan. (Refer to note 20).The GPF has concluded an agreement with a senior funder to purchase the senior portion of thisloan. This portion was transferred to loans and receivables assets held for trading. (Refer to note 5).

Nonkwelo (Pty) Ltd - Erf 10 & 11 Hunter StreetLoan amount 4,278,866 3,151,764Advance - 985,147Interest earned 274,026 198,897Social benefit adjustment - (181,496)Interest amortised using effective interest rate method 151,710 162,539Impairment (608,464) (37,985)

4,096,138 4,278,866

The loan facility to Nonkwelo (Pty) Ltd - Erf 10 & 11 Hunter Street comprises of an interest-free loan of R1,516,987 andinterest-bearing facility of R4,062,645. The interest-free facility is for thirteen years and is repayable in five equalinstalments commencing in March 2018. The interest-bearing facility is for twenty four years and bears interest at astaggered JIBAR rate and is repayable in annual instalments which should have commenced. The nominal value of theloan is R5,732,688 (2016: R5,458,662). The loan is secured by a mortgage bond over Erf 10 & 11 Hunter Street. The loanwas impaired as it is currently being renegotiated and the instalment due was not paid. (Refer note 20).

Norvena Property Consortium - O'Reilly StreetLoan amount 8,064,798 5,540,255Prior years current-term portion reversed 258,817 -Advance - 2,530,832Interest earned 744,900 559,166Social benefit adjustment - (432,488)Interest amortised using effective interest rate 163,597 139,393Impairment - (13,543)Current-term portion transferred to current assets (225,139) (258,817)Impairment (94,388) -

8,912,585 8,064,798

The twenty-year loan facility of R9,213,700 to Norvena Property Consortium - O'Reilly Street bears interest at a staggeredJIBAR rate and is repayable in monthly instalments which should have commenced. The nominal value of the loan isR10,573,711 (2016: R9,828,811). The loan is secured by a mortgage bond over Erf 74,76,78,80,82,84 and 86 Berea. Theloan was impaired as it is currently being renegotiated and the instalment due was not paid. (Refer note 20).

Norvena Property Consortium - Norvena CourtLoan amount 2,137,701 -Advance 8,566,143 2,558,635

44



128




3. Loans to (from) economic entities (continued)Interest earned 626,558 44,572Social benefit adjustment (1,391,062) (479,783)Interest amortised using effective interest rate 130,835 14,277Impairment (98,633) -

9,971,542 2,137,701

The twenty-year loan facility of R9,213,700 to Norvena Property Consortium - Novena Court bears interest at a staggeredJIBAR rate and is repayable in monthly instalments commencing in January 2017. The nominal value of the loan isR11,795,909 (2016: R2,603,207). The loan is secured by a mortgage bond over Erf 74,76,78,80,82,84 and 86 Berea. Theloan was impaired as it is currently being renegotiated and the instalment due was not paid. (Refer note 20).

Ordicode (Pty) Ltd - Erf 2242, 2243, 2248 and 2249 JohannesburgLoan amount 2,431,141 -Advance 465,593 3,596,201Interest earned 180,604 20,649Social benefit adjustment (90,011) (1,203,015)Interest amortised using effective interest rate 102,195 17,306

3,089,522 2,431,141

The loan facility to Ordicode (Pty) Ltd - Erf 2242, 2243 and 2249 Johannesburg comprises of an interest-free loan ofR1,500,000 and interest-bearing facility of R5 562,900. The interest-free facility is for ten-years and is repayable in monthlyinstalments commencing in February 2021. The interest-bearing facility is for twenty-years and bears interest at a staggeredJIBAR rate and is monthly instalments commencing in August 2017. The nominal value of the loan is R4,263,048 (2016:R3,616,850). The loan is secured by a mortgage bond over Erf 2242, 2243 and 2249 Johannesburg.

Phahamo Resources (Pty) Ltd - Erf 8993 Olievenhoutbosch Ext 36 CenturionAdvance 21,815,803 -Interest earned 578,357 -Social benefit adjustment (2,866,954) -Interest amortised using effective interest rate 136,477 -Loan and receivable transferred to current assets held for trade (8,759,003) -

10,904,680 -

The loan facility to Phahamo Resources (Pty) Ltd - Erf 8993 Olievenhoutbosch comprises of an interest-free loan ofR2,000,000, interest-bearing facility of R11,056,800 and a senior loan of R17,626,700. The interest-free facility is for ten-years and is repayable in monthly instalments commencing in June 2024. The interest-bearing facility is for twenty-yearsand bears interest at a staggered JIBAR plus 0.5% rate and is repayable in monthly instalments commencing in August2018. The interest-bearing facility is for twenty-years and bears interest at prime plus 1% rate and is repayable in monthlyinstalments commencing in February 2018. The nominal value of the loan is R22,394,160 (2016: RNil). The loan is securedby a mortgage bond over Erf 8993 Olievenhoutbosch.

Property Kalcha (Pty) Ltd - Portion 1&2 of Erf 1871 Albertville, RandburgLoan amount 454,894 -Advance 1,871,931 887,668Interest earned 53,650 -Social benefit (372,821) (450,523)Interest amortised using effective interest rate 53,793 17,749

2,061,447 454,894

The loan facility to Property Kalcha (Pty) Ltd - Portion 1&2 of Erf 1871 Albertville, Randburg comprises of a interest-freefacility of R900,000, a junior interest-bearing facility of R2,100,800 and a senior interest-bearing facility of R3,867,340. Theinterest-free facility is repayable in monthly instalments which commencing in November 2020. The junior interest-bearingfacility bears interest at a staggered JIBAR rate and has not yet commenced. The senior interest-bearing facility bearsinterest at prime and has not yet commenced. The nominal value of the loan is R2,813,249 (2016:R1,087,668). The loan issecured by a mortgage bond over Portion 1&2 of Erf 1871 Albertville, Randburg.

Proxisol (Pty) Ltd - Erven 31,32,33,59&60 BetramsAdvance 18,428,559 -Interest earned 618,034 -Short-term payments received (3,654,393) -

45



129




3. Loans to (from) economic entities (continued)Social benefit adjustment (413,880) -Interest amortised using effective interest rate 8,932 -Loan and receivables transferred to current assets held for trading (6,182,895) -

8,804,357 -

The twenty-year loan facility of R8,591,312 to Proxisol (Pty) Ltd - Erven 31,32,33,59&60 Betrams bears interest at JIBARplus 20.5% and is repayable in monthly instalments which commence in September 2017. The nominal value of the loan isR15,392,201 (2016: RNil). The loan is secured by a mortgage bond over Erven 31,32,33,59&60 Betrams. The GPF hasconcluded an agreement with a senior funder to purchase the senior portion of this loan. This portion was transferred toloans and receivables assets held for trading. (Refer to note 5).

Rainbow Beach Trading 261 (Pty) Ltd -Sondela Village DaggafonteinLoan amount 10,848,938 10,703,021Prior years current-term portion reversed 761,259 696,502Interest earned 1,019,239 914,722Short-term payments received (1,582,014) (909,420)Interest amortised using effective interest rate 210,780 205,372Current-term portion transferred to current assets (801,415) (761,259)

10,456,787 10,848,938

The fifteen-year loan facility of R12,672,939 to Rainbow Beach Trading 261 (Pty) Ltd - Sondela Village Daggafontein andSuburban bears interest at a staggered JIBAR rate and is repayable in monthly instalments which have commenced. Thenominal value of the loan is R12,002,717 (2016: R12,565,474). The loan is secured by a mortgage bond over Erf 101 andErf 94 City and Suburban.

Redformationz Holdings (Pty) Ltd - Erf 4862 Birch Acres Ext 32Loan amount 3,476,641 -Advance 3,480,820 4,927,855Interest earned 385,600 114,607Social benefit adjustments (661,480) (1,654,245)Interest amortised using effective interest rate 166,306 88,424

6,847,887 3,476,641

The loan facility to Redformationz Holding (Pty) Ltd - Erf 4862 Birch Acres Ext 32 comprises of a interest-free facility ofR2,000,000 and an interest-bearing facility of R12,673,600. The interest-free facility is for 10 years and is repayable inmonthly instalments commencing in August 2020. The interest-bearing facility bears interest at a staggered JIBAR rate andis repayable in monthly instalments commencing in August 2017. The nominal value of the loan is R8,908,881(2016:R5,042,460). The loan is secured by a mortgage bond over Erf 4862 Birch Acres Ext 32.

Rivavect Investments (Pty) Ltd - Central HouseLoan amount 4,412,586 4,561,598Prior years current-term portion reversed 143,206 144,186Interest earned 412,449 381,080Interest amortised using the effective interest rate method 78,049 75,928Short-term payments received (634,000) (607,000)Current-term portion transferred to current assets (157,832) (143,206)

4,254,458 4,412,586

The fifteen-year loan facility of R5,150,000 to Rivavect Investments (Pty) Ltd - Central House bears interest at a staggeredJIBAR rate plus 1.25% and is repayable in monthly instalments which commenced. The nominal value of the loan isR4,722,375 (2016: R4,943,924). The loan is secured by a mortgage bond over Erf 2071 Roodepoort.

Sabiglo (Pty) Ltd - Erf 301 Windsor West, RandburgLoan amount 1,112,693 931,676Advance - 165,786Interest earned 65,628 53,197Social benefit adjustment - (70,720)Interest amortised using effective interest rate 51,421 41,888Impairment (5,887) (9,134)

1,223,855 1,112,693

46



130





The loan facility to Sabiglo (Pty) Ltd - Erf 301 Windsor West comprises of a interest-free loan of R860,000 and interest-bearing loan of R8,552,200. The interest-free facility is for nine-years and is repayable in five equal instalmentscommencing in August 2019. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBAR plus0.5% rate. The interest-bearing facility should have commenced in October 2016. The nominal value of the loan isR1,552,220 (2016:R1,486,592).The loan is secured by a mortgage bond over Erf 301 Windsor West, Randburg. The loanwas renegotiated and the moratorium on payments was extended resulting in an impairment of the loan. (Refer to note 20).

Sakhazonke Investment (Pty) Ltd - Erf 252, Kempton ParkLoan amount 273,429 -Advance 589,321 484,517Social benefit adjustment (274,445) (226,680)Interest amortised using effective interest rate 59,278 15,592Provision for doubtful debts (647,583) -

- 273,429

The loan facility to Sakhazonke Investments (Pty) Ltd - Erf 252, Kempton Park comprises of a interest-free loan ofR707,477 and an interest-bearing loan of R6,708,315. The interest-free facility is nine-years and is repayable in annuallycommencing in May 2023. The interest-bearing facility has not yet commenced. The nominal value of the loan isR1,273,838 (2016: R684,517). The loan is secured by a mortgage bond over Erf 252, Kempton Park. The loan wasprovided for as a doubtful debt due to breach of contract. Management asses the probability of recovery as 100% thereforethe whole loan has been provided for (Refer to note 31). The GPF instituted legal proceedings against the borrower. (Referto note 3).

Sethitho Projects CC - Erf 1191 Rayton Extension 7Loan amount 343,765 -Advance 2,856,220 705,019Interest earned 12,574 -Social benefit adjustment (759,405) (367,275)Interest amortised using effective interest rate 54,696 6,021

2,507,850 343,765

The loan facility to Sethitho Projects CC - Erf 1191 Rayton Extension 7 comprises of a interest-free loan of R1,500,000 andan interest-bearing loan of R2,761,300. The interest-free facility is nine-years and is repayable in monthly instalmentscommencing in February 2021. The interest-bearing facility has not yet commenced. The nominal value of the loan isR3,573,813 (2016: R705,019). The loan is secured by a mortgage bond over Erf 1191 Rayton Extension 7.

Sam Lubbe Investment CC - Erf 1654, GermistonAdvance 8,227,218 -Interest earned 483,153 -Social benefit adjustment (1,207,810) -Interest amortised using effective interest rate 79,632 -

7,582,193 -

The loan facility to Sam Lubbe Investments CC - Erf 1654, Germiston comprises of an interest-bearing loan of R8,227,219.The interest bears interest at a staggered JIBAR plus 0.5% rate and is repayable in monthly instalments commencing inJuly 2017. The nominal value of the loan is R8,710,372 (2016: RNil). The loan is secured by a mortgage bond over Erf1654 Germiston.

Sheran Investment (Pty) Ltd - Klippoortjie Agricultural LotsAdvance 4,134,600 -Interest earned 96,989 -Social benefit adjustment (676,668) -Interest amortised using effective interest rate 4,394 -

3,559,315 -

The loan facility to Sheran Investment (Pty) Ltd - Klippoortjie Agricultural Lofts comprises of an interest-bearing loan ofR7,615,713. The interest bears interest at a staggered JIBAR plus 0.5% rate and is repayable in monthly instalmentscommencing in January 2018. The nominal value of the loan is R4,231,589 (2016: RNil). The loan is secured by amortgage bond over Erf 73 Klippoortjie, Johannesburg.

47



131





Seraph Investment Pty Ltd - Erven 488, 489, 490, and 491 New Doornfontein,JohannesburgAdvance 11,370,956 -Interest earned 65,274 -Social benefit adjustment (3,064,034) -Interest amortised using the effective interest rate method 17,162 -

8,389,358 -

The loan facility to Seraph Investment Pty Ltd - Erven 488, 489, 490, and 491 New Doornfontein, City comprises of aninterest-bearing loan of R11,166,200 and an interest-free loan of R2,000,000. The interest-free facility id for ten-years andis repayable in monthly instalments commencing in February 2022. The interest-bearing facility bears interest at astaggered JIBAR plus 0.5% rate and is repayable in monthly instalments commencing in March 2019. The nominal value ofthe loan is R11,436,230 (2016: RNil). The loan is secured by a mortgage bond over Erven 488,489,490 and 491 NewDoornfontein Johannesburg.

Standard BankPrior years current-term portion transferred to current assets - 207,378Interest earned - 3,754Short-term payments received - (212,842)Interest amortised using effective interest rate - 1,710

- -

The Standard Bank Subsidised loan facility supported developments of new sub-markets within the social housing sectorwhich allows for blending of interest rates between banks and the Gauteng Partnership Trust resulting reduced rates toprojects. The nominal value of the loan is RNIL (2016: RNIL) as it was repaid in the current year. The loans beared interestat prime less 3.75% per annum.

Simelani Business Solutions (Pty) Ltd - Erf 2682 Kempton ParkLoan amount 6,182,140 2,811,662Prior year loan and receivables transferred to current assets held for trading 1,634,584 -Advance 6,187,445 5,330,516Interest earned 1,053,035 316,051Social benefit adjustment (101,182) (793,437)Interest amortised using effective interest rate 188,445 152,432Impairment (6,693) -Loan and receivables transferred to current assets held for trading (7,745,029) (1,635,084)Current-term portion transferred to current assets (11,485) -

7,381,260 6,182,140

The loan facility to Simelani Business Solutions (Pty) Ltd - Erf 2682 Kempton Park comprises of a interest-free loan ofR1,586,925, junior interest-bearing loan of R5,482,763 and senior interest-bearing loan of R10,555,978. The interest-freefacility is for nine-years and is repayable in five equal instalments commencing in September 2018. The interest-bearingfacilities are for twenty-years. The junior interest-bearing facility bears interest at a staggered JIBAR rate and is repayable inmonthly instalments commencing in April 2016. The senior interest-bearing facility bears interest at prime and is repayablein monthly instalments which commence in January 2017.The nominal value of the loan is R16,671,904 (2016:R9,426,208). The loan is secured by a mortgage bond over Erf 2682 Kempton Park. The loan was renegotiated and themoratorium on payments was extended as there were delays in construction. This resulted in an impairment of the loan.(Refer to note 20). The GPF has concluded an agreement with a senior funder to purchase the senior portion of this loan.This portion was transferred to loans and receivables assets held for trading. (Refer to note 5).

Shukumani Trading Enterprises (Pty) Ltd - Erf 550 BertramsLoan amount 2,093,684 1,677,762Advance 503,446 301,532Interest earned 118,960 70,056Social benefit adjustment (76,164) (57,814)Interest amortised using effective interest rate 132,078 111,513Impairment (9,771) (9,365)

2,762,233 2,093,684

48



132





The loan facility to Shukumani Trading Enterprises (Pty) Ltd comprises of a interest-free loan of R1,695,840 and interest-bearing loan of R2,811,461. The interest-free facility is for nine-years and is repayable in five equal instalmentscommencing in April 2018. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBAR rate andis repayable in monthly instalments commencing in June 2016. The nominal value of the loan is R3,360,353 (2016:R2,731,271). The loan is secured by a mortgage bond over Erf 550 Bertrams, Johannesburg. The loan was renegotiatedand the moratorium extended as there were delays in construction resulting in an impairment. This resulted in animpairment of the loan. (Refer to note 20).

Stormstrong (Pty) Ltd - Erf 299 Windsor, RandburgLoan amount 276,602 -Advance 17,602 604,032Social benefit adjustment (9,518) (328,066)Interest amortised using effective interest rate 31,347 636

316,033 276,602

The loan facility to Stormstrong (Pty) Ltd - Erf 299 Windsor, Randburg comprises of a interest-free loan of R900,000 andinterest-bearing loan of R3,282,500. The interest-free facility is for ten-years and is repayable in monthly instalmentscommencing in April 2021. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBAR rate andhas not yet commenced. The nominal value of the loan is R871,634 (2016: R604,032). The loan is secured by a mortgagebond over Erf 299 Windsor, Randburg.

SOA Residential Village (Pty) Ltd - Erf 1532 Selcourt SpringsLoan amount 4,789,662 4,405,576Advance 353,310 -Social benefit adjustment (59,182) -Interest earned 393,201 301,558Interest amortised using effective interest rate 151,559 133,450Impairment (84,594) (50,922)

5,543,956 4,789,662

The loan facility of R5,455,665 to SOA Residential Village (Pty) Ltd - Erf 1532 Selcourt Springs comprises of a interest-freeloan of R1,110,000 and interest-bearing loan of R4,345,665. The interest-free facility is for nine-years and is repayable infive equal instalments commencing in September 2018. The interest-bearing facility is for twenty-years and bears interest ata staggered JIBAR rate and is repayable in monthly instalments that commence in April 2016. The nominal value of theloan is R6,795,287 (2016:R6,048,775). The loan is secured by a mortgage bond over Erf 1532 Selcourt, Springs. The loanwas renegotiated and the moratorium on payments was extended as there were delays in construction. This resulted in animpairment of the loan in the current and prior year's. (Refer to note 20).

Take Off Real Estate (Pty) Ltd - Jeppestown ProjectLoan amount - 1Amount provided for as a provision for doubtful debt in prior year - 650,106Interest amortised using effective interest rate - 29,379Bad debts written off - (679,486)

- -

The loan facility of R3,805,954 to Take Off Real Estate (Pty) Ltd comprised of a interest-free and interest-bearing facility.The interest-free facility was for nine-years and was repayable in five equal instalments which were meant to commence.The interest-bearing facility was for twenty-years and was not drawn down. The nominal value of the loan is RNil (2016:RNil). The loan is secured by a mortgage bond over Erf 1813, 1814 & 1817 Jeppestown, Johannesburg. The loan waswritten off as a bad debt due to a liquidation claim initiated by another creditor. The loan was written off this year afterlodging the claim with the liquidators. Nothing could be recovered.(Refer to notes 31,32 &33).

Take Shape Properties 75 CC - Erf 4510, JohannesburgLoan amount 8,338,512 6,126,931Prior years current-term portion reversed 20,148 -Advance 370,295 1,899,302Interest earned 728,897 510,292Social benefit adjustment (58,621) (316,588)Interest amortised using effective interest rate 204,769 165,346

49



133




3. Loans to (from) economic entities (continued)Short-term payments received (492,000) -Impairment (64,810) (26,623)Current-term portion transferred to current assets (32,709) (20,148)

9,014,481 8,338,512

The loan facility to Take Shape Properties 75 CC - Erf 4510, Johannesburg comprises of a interest-free loan of R1,500,000and interest-bearing loan of R8,497,900. The interest-free facility is for nine-years and is repayable in five equalinstalments commencing in September 2019. The interest-bearing facility is for twenty-years and bears interest at astaggered JIBAR plus 0.5% rate and commences in April 2016. The nominal value of the loan is R10,874,355 (2016:R10,267,169). The loan is secured by a mortgage bond over Erf 4519, Johannesburg. The moratorium on payments wasextended as there were delays in construction. This resulted in an impairment of the loan in the current and prior year's.(Refer to note 20).

Tenitor Properties (Pty ) Ltd - The Ridge HotelLoan amount - 9,890,133Provision for doubtful debts reversed 10,725,600 -Interest earned 486,105 721,484Short-term payments received (3,579,856) -Interest amortised using effective interest rate 1,298,838 113,984Impairment (114,584) -Provision for doubtful debts - (10,725,600)Bad debt written off (8,816,103) -

- 1

The twenty-year loan facility of R11,217,900 to Tenitor Properties (Pty) Ltd beared interest at JIBAR rate and wasrepayable in twelve annual instalments which commenced. The nominal value of the loan was R12,565,366 ( 2016:R11,909,854). The loan is secured by a mortgage bond over Erf 185,187,189,191 and 1411 Berea, Johannesburg. Theloan was impaired as the building was hijacked and no payments were received. The loan to Tenitor Properties (Pty) Ltd -The Ridge Hotel was sold on auction and the balance owed was written off.

Trust for Urban Housing Finance - Intuthuko (Pty) LtdLoan amount 13,685,512 12,047,338Prior year's current-term portion reversed - 2,000,000Advance - 1,975,000Interest earned 1,198,626 917,677Short-term payments received (1,328,131) (3,433,708)Social benefit adjustment - (166,017)Interest amortised using effective interest rate 421,939 345,222

13,977,946 13,685,512

The loan facility of R20,000,000 was made available from our Emerging Entrepreneur Fund to enable the Trust for UrbanHousing Finance - Intuthuko (Pty) Ltd to finance low collateral projects. The first tranche of R2,000,000 was for ten-years,interest-free and was repayable in one instalment in April 2015. The designated funds will not be utilised to make a surplus,but to facilitate and fund low collateral projects on the basis that the capital amount is preserved. The second tranche ofR8,000,000 bears interest at prime less 4.16%. The second tranche's final repayment date is October 2018. The thirdtranche of R10,000,000 is available for seven years and bears interest at prime less 2% and is repayable in one instalmentin August 2020. The nominal amount is R15,380,913 (2016: R15,510,418).

Tsebo Consumables Supplies (Pty) Ltd - Erf 256 KemptonLoan amount 3,504,204 3,428,175Prior years current-term portion reversed 11,493 18,243Interest earned 217,604 193,897Short-term payments received (304,038) (275,914)Interest amortised using effective interest rate 144,878 154,914Impairment (352,267) (3,618)Current-term portion transferred to current assets - (11,493)

3,221,874 3,504,204

50



134





The loan facility to Tsebo Consumable Supplies (Pty) Ltd comprises of a interest-free loan of R1,594,922 and interest-bearing loan of R2,840,397. The interest-free facility is for ten-years and is repayable in five equal instalments commencingin December 2018. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBAR rate and thecapital is repayable in monthly instalments which have commenced. The nominal value of the loan is R4,520,718 (2016:R4,607,153). The loan is secured by a mortgage bond over Erf 256 Kempton Park, Ekurhuleni. The loan was impaired asthe moratorium on payments was extended as there were delays in construction. This resulted in an impairment of the loan.(Refer to note 20).

Tumaini Properties and Real Estate CC - Erf 52 & 53 New DoornfonteinLoan amount 2,744,406 2,366,523Advance 23,256 203,061Interest earned 192,686 152,992Social benefit adjustment (3,623) (69,531)Interest amortised using effective interest rate 101,117 91,361Impairment (43,624) -

3,014,218 2,744,406

The loan facility to Tumaini Properties and Real Estate CC - Erf 52 & 53 New Doornfontein comprises of a interest-free loanof R1,577,136 and interest-bearing loan of R2,641,418. The interest-free facility is for nine-years and is repayable in fiveequal instalments commencing in February 2019. The interest-bearing facility is for twenty-years and bears interest atstaggered JIBAR rate and is repayable in monthly instalment commencing in April 2016. The nominal value of the loan isR3,723,681 (2016: R3,540,801). The loan is secured by a mortgage bond over Erf 52 & 53 New Doornfontein. The loanwas renegotiated and the moratorium on payments has been extended as there were delays in construction. This resultedin an impairment of the loan. (Refer to note 20).

Vuttomi Group (Pty) Ltd - Erf 347, 348, 349 and 350 Eldorette Ext 34 PretoriaNorthAdvance 3,594,560 -Interest earned 129,121 -Social benefit adjustment (1,293,397) -Interest amortised using effective interest rate 87,980 -

2,518,264 -

The loan facility to Vuttomi Group (Pty) Ltd - Erf 347, 348, 349 and 350 Eldorette Ext comprises of a interest-free loan ofR1,600,000 and a junior interest-bearing loan of R9,115,300. The interest-free facility is for ten-years and is repayable inmonthly instalments commencing in June 2021. The junior interest-bearing facility is for twenty-years and bears interest at astaggered JIBAR rate and is repayable in monthly instalments which commence in December 2017. The nominal value ofthe loan is R3,710,489 (2016: RNil). The loan is secured by a mortgage bond over Erf 347, 348, 349 and 350 EldoretteExt.

Valotorgue 199CC - Erf 757 Pretoria NorthLoan amount 5,530,774 5,425,994Prior years loans and receivables transferred to current assets held for tradingreversed

8,150,688 -

Advance 230,216 7,396,134Social benefit adjustment (132,922) (114,908)Interest earned 1,280,121 826,902Short-term payments received (1,013,500) -Interest amortised using effective interest rate 197,120 166,606Impairment (58,442) (19,264)Loans and receivables transferred to current assets held for trading (7,455,584) (8,150,690)

6,728,471 5,530,774

51



135





The loan facility to Valotorgue 199CC - Erf 757 Pretoria North comprises of a interest-free loan of R1,768,675, juniorinterest-bearing loan of R4,172,000 and senior interest bearing loan of R8,584,325. The interest-free facility is for nine-years and is repayable in five equal instalments commencing in November 2018. The junior interest-bearing facility is fortwenty-years and bears interest at a staggered JIBAR rate and is repayable in monthly instalments which should havecommenced. The senior interest-bearing facility bears interest at prime and is repayable in monthly instalments whichshould have commenced. The nominal value of the loan is R15,741,674 (2016: R15,220,376). The loan is secured by amortgage bond over Erf 757, Pretoria North. The loan was renegotiated and the moratorium on payments was extended asthere were delays in construction. This resulted in an impairment of the loan. (Refer to note 20). The GPF has concluded anagreement with a senior funder to purchase the senior portion of this loan. This portion was transferred to loans andreceivables assets held for trading. (Refer to note 5).

Yeast City Housing (Pty) Ltd - SalvokopLoan amount 5,191,354 5,421,533Prior years current-term portion reversed 229,801 227,437Interest earned 467,972 430,303Short-term payments received (767,617) (779,159)Interest amortised using the effective interest rate method 120,557 121,041Current-term portion transferred to current assets (231,318) (229,801)

5,010,749 5,191,354

The twenty-year loan facility of R7,221,660 to Yeast City Housing (Pty) Ltd - Salvokop bears interest at a staggered JIBARrate and the capital is repayable in 19 annual instalments which have commenced. The nominal value of the loan isR5,942,121 (2016: R6,241,767). The loan is secured by a mortgage bond over Erf 4 Salvokop Pretoria.

Yeast City Housing (Pty) Ltd - Thembelihle VillageAdvance 48,085,150 -Interest earned 1,222,267 -Social benefit adjustment (9,477,572) -Interest amortised using the effective interest rate method 193,809 -

40,023,654 -

The twenty-year loan facility of R48,085,150 to Yeast City Housing (Pty) Ltd - Thembelihle Village bears interest atstaggered JIBAR rate and is repayable in monthly instalments which commence in November 2018. The nominal value ofthe loan is R49,307,416 (2016: RNil). The loan is secured by a mortgage bond over Erf 3020 Pretoria, Tshwane.

Yeast City Housing (Pty) Ltd - Tau VillageLoan amount 3,949,550 4,331,907Prior years current-term portion reversed 378,574 355,036Interest earned 204,307 169,235Short-term payments received (845,411) (825,082)Interest amortised using effective interest rate 277,370 297,028Current-term portion transferred to current assets (399,820) (378,574)

3,564,570 3,949,550

The fifteen-year loan facility of R9,000,000 to Yeast City Housing (Pty) Ltd - Tau Village bears interest at a rate of primeless 7% and is repayable in 14 annual instalments which have commenced. The nominal value of the loan is R5,251,544(2016: R5,892,648). The loan is secured by a mortgage bond over Erf 112 Pretoria.

Xando Trade or Invest 614 (Pty) Ltd - Erf 324 Princess Ext 49, RoodepoortLoan amount 10,105,228 10,045,123Advance 154,717 826,113Interest earned 929,452 (765,196)Short-term payments received (1,228,000) -Interest amortised using effective interest rate 157,033 153,904Current-term portion transferred to current assets (169,016) (154,716)

9,949,414 10,105,228

52



136





The twenty-year loan facility of R11,593,786 to Xando Trade or Invest 614 (Pty) Ltd - Erf 324 Princess Ext 49 bears interestat JIBAR rate plus 0.5% and is repayable in monthly instalments which have commenced. The nominal value of the loan isR11,759,999 (2016: R12,058,547). The loan is secured by a mortgage bond over Erf 324 Princess Ext 49, Roodepoort.

Xylo Trading 253 CC - Portion 3 of Erf 2834 Ga-Rankuwa unit 2Loan amount 965,866 -Advance - 901,837Interest earned 117,120 64,029Current-term portion transferred to current assets (18,163) -

1,064,823 965,866

The loan facility to Xylo Trading 253 CC - Portion 3 of Erf 2834 Ga-Rankuwa unit 2 comprises of an interest-bearing loan ofR10,221,314. The loan bears interest at prime plus 1% and is repayable in monthly instalments commencing in September2016. The loan is secured by a mortgage bond over portion 3 of Erf 2834 Ga-Rankuwa unit 2.The nominal value of the loanis R1,082,986 (2016: R965,866).

Zakhele Investments CC - Erf 257 Kempton ParkLoan amount 3,798,499 3,619,819Prior year current-term portion reversed 40,806 26,213Interest earned 297,860 395,624Short-term payments received (350,867) (162,300)Interest amortised using effective interest rate 119,329 (27,796)Impairment (246,854) (12,255)Current-term portion transferred to current assets (124,675) (40,806)

3,534,098 3,798,499

The loan facility to Zakhele Investments CC comprises of a interest-free loan of R1,542,089 and interest-bearing loan ofR2,978,169. The interest-free facility is for nine-years and is repayable in five equal instalments commencing in December2017. The interest-bearing facility is for twenty-years and bears interest at a staggered JIBAR rate and is repayable inannual instalments which have commenced. The nominal value of the loan is R4,881,804 (2016: R4,934,745). The loan issecured by a mortgage bond over Erf 257 Ekurhuleni. The loan was impaired as the account is in arrears. (Refer to note20).

Zwide & Dewa Investments (Pty) Ltd - Erf 424 & 425 RhodesfieldLoan amount 3,581,131 3,231,671Advance 5,622,444 33,845Interest earned 268,993 183,175Social benefit adjustment (897,209) (5,278)Interest amortised using effective interest rate 145,832 137,718Impairment (396,291) -

8,324,900 3,581,131

The loan facility to Zwide & Dewa Investments (Pty) Ltd - Erf 424 & 425 Rhodesfield comprises of a interest-free loan ofR1,858,700, junior interest-bearing loan of R7,247,600 and senior interest-bearing loan of R16,071,780. The interest-freefacility is for nine-years and is repayable in five equal instalments commencing in February 2019. The interest-bearingfacilities are for twenty-years. The junior interest-bearing facility bears interest at a staggered JIBAR rate plus 0.5% and isrepayable in monthly instalments commencing in April 2016. The senior interest-bearing facility bears interest at prime andhas not yet commenced. The nominal value of the loan is R10,542,666 (2016: R4,651,374). The loan is secured by amortgage bond over Erf 424 & 425 Rhodesfield. The loan was renegotiated and the moratorium on payments wasextended. This resulted in an impairment of the loan. (Refer to note 20).

Total non - current loan and receivables from exchange transactions as restated(Refer to note 35)

592,112,672 428,535,825

53



137





Total loans and receivables from exchange transactions as restated (Refer tonote 35)Non - current portion loans and receivables from exchange transactions as restated(Refer to note 35)

592,112,672 428,535,825

Current-portion portion loans and receivables from exchange transactions asrestated (Refer to note 35)

39,794,928 7,385,295

631,907,600 435,921,120

Reconciliation of provision for doubtful debtsOpening balance 28,612,630 20,500,752(Decrease)/Increase in provision - Aquarella Investments 360 (Pty) Ltd - 85-87 (2,068,698) 2,068,698Decrease in provision - BM Molefi Property 241 (Pty) Ltd - Kgorong Estate (10,898,415) (8,952,230)Increase in provision - Comocap (Pty) Ltd - 88 Relly Street 112,807 1,072,283Increase in provision - DNM Estate (Pty) Ltd - Erf 517 & 518 City and Suburban 3,115,825 -(Decrease)/Increase in provision - Highlands (Pty) Ltd - Highlands Lofts (712,025) 3,847,635Increase in provision - Landopoint (Pty) Ltd - Erf 905,906 and 907 Kenilworth 1,073,158 -Increase in provision - Sakhazonke Investments (Pty) Ltd - Erf 252, Kempton Park 647,583 -Decrease in provision - Take Off Real Estate (Pty) Ltd - Jeppestown Project - (650,108)(Decrease)/ Increase in provision - Tenitor Properties (Pty) Ltd - The Ridge (10,725,600) 10,725,600

Closing balance 9,157,265 28,612,630

The movement in the provision is R19,455,365 (2016: R8,111,878) (Refer to note 3).

4. Receivables from exchange transactions

Guarantees with attorneys 1,435,123 3,568,325Sundry debtors 2,774,605 3,416,019Interest accrued 2,318,811 1,121,531

6,528,539 8,105,875

Receivables from exchange transactions

Guarantees with Attorneys - comprise of money held in Trust by attorneys until such time that bonds are registered andtransfer has taken place. These guarantees are interest-bearing and are generally between 30 and 360 day terms. (Refer tonote 24).

Sundry debtors - consists mainly of prepayments and contract recovery fees owed by clients. These amounts are non-interest-bearing.

Interest accrued - comprised of interest owed on the GPF's bank accounts by Absa Bank. These interest amounts are non-interest-bearing and are generally on 30-day terms.

Credit quality of trade and other receivables

The credit quality of receivables from exchange transactions that are neither past nor due nor impaired is good . The creditquality is assessed by reference to external credit ratings (if available) or to historical information about counterparty defaultrates.

Fair value of trade and other receivables

Receivables from exchange transactions are carried at invoice amount and not discounted due to the effect of discountingnot being material. Receivables from exchange transaction fair value approximate its carrying value.

5. Loans and receivables held-for-trade

Loans and receivables held-for-tradeBUA Africa (Pty) Ltd - Erf 2918 Kempton Park 48,195,345 -DNM Estate (Pty) Ltd - Erf 517 & 518 City & Suburban 10,932,764 10,564,264Eagle Valley Property 41 (Pty) Ltd Phase 1 - Ptn 1 of Erf 1908 Erasmus 5,993,324 7,135,762Eagle Valley Property 41 (Pty) Ltd Phase 2 - Ptn 1 of Erf 1908 Erasmus 6,585,477 7,750,136

54



138




5. Loans and receivables held-for-trade (continued)GNI Real Estate - Erf 113 Pretoria North 5,858,488 -Lukataedi (Pty) Ltd - Erf 739 Pretoria North 5,515,114 5,306,942Mahlahla Advancement Dynamics CC - Erf 442 Wolmer Pretoria 9,102,998 -Makabongwe Property Holding (Pty) Ltd - Erf 983 9,591,786 4,914,327Meilijian Construction and Development CC - 3597 Pomona Ext 75 5,047,629 -Muma Property Investment (Pty) Ltd - Erf 978 Pretoria North 10,261,443 10,286,363NBLR Properties (Pty) Ltd - Ext 2551,2552 &2553 Fleurhof Ext 20 17,120,626 -Phahamo Resources (Pty) Ltd - Erf 8993 Olievenhoutbosch Ext 36 Centurion 8,759,003 -Proxisol Best Investment (Pty) Ltd - Erf 3834 Eersterus Ext6 6,182,895 -Simelani Business Solutions (Pty) Ltd - Erf 2682 Kempton Park 7,745,029 1,635,083Valotorgue 199CC - Erf 757 Pretoria North 7,455,584 8,150,690

164,347,505 55,743,567

Loans and receivables held-for-trade comprise of senior loans that will be purchased by a senior funder within the nextfinancial year. The GPF has concluded an agreement with a senior funder for the purchase of these loans. These amountsbear interest at prime related rates and are expected to be bought out shortly. Held-for-trade instruments are initiallyrecognised at cost which approximates fair value. These loans will be sold at their cost. R153,116,981 is attributable toAspari (Pty) Ltd R11,230,524 is attributable to Future Growth Asset Management (Pty) Ltd. During the year the GPFreceived R17,654,523 from Future Growth Asset Management (Pty) Ltd. Loans and receivables held-for-trade have beenrestated (Refer note 35). Subsequent to year-end Trust has decided to foreclose on the loan to DNM Estate (Pty) Ltd. TheDNM Estate (Pty) Ltd loan attributable to Asapri (Pty) Ltd of R10,932,764 will be converted to a GPF loan. (Refer to note 36& Trustees report note 3).

6. Financial instruments at fair value

Non-Current Assets - financial instruments at fair valueCurrent portion - financial instruments at fair value - 7,793,622


Financial instruments at fair value consisted of investments in unquoted ordinary shares and loans. The valuation requiredmanagement to make estimates about the expected future cash flows of the shares which are discounted at current rates.Management believed that the resulting estimated fair values are reasonable and the most appropriate at the reportingdate.

The equity investments in Greater Germiston Inner City Housing Company Phase II (Pty) Ltd and Greater Germiston InnerCity Housing Company Pharoe Park (Pty) Ltd consists of R4,000,000 each. The valuations were done using discountedcashflow techniques. The repayments of the investments have been determined by a put and call option between GautengPartnership Fund and the Ekurhuleni Metropolitan Municipality as is stipulated in the loan agreement entered into by theformer two parties. The impairments of the loans were reversed as Ekurhuleni Metropolitan Municipality has decidedto call their options and will be paying the GPF for their equity investment.

The investments in Greater Germiston Inner City Housing Company Phase II (Pty) Ltd and Greater Germiston InnerCity Housing Company Pharoe Park (Pty) Ltd have been redeemed.

Credit quality of debt in financial instruments at fair value

The credit quality of financial investments is managed internally by ensuring that investments are made only after assessingand evaluating the social housing institutions management capacity and project feasibility. Management considers thecredit risk relating to the loan in Greater Germiston Inner City Housing Corporation Phase II and Greater Germiston InnerCity Housing Corporation Pharoe Park as being high as the companies models are not sustainable and therefore haveimpaired the loans.

55



139




7. Property, plant and equipment

2017 2016

Cost Accumulateddepreciation

andaccumulatedimpairment

Carrying value Cost Accumulateddepreciation


Carrying value

Furniture and fixtures 1,006,844 (529,693) 477,151 1,257,508 (684,427) 573,081Motor vehicles 161,076 (152,839) 8,237 161,076 (146,251) 14,825Office equipment 1,758,545 (1,418,840) 339,705 1,928,450 (1,251,615) 676,835Computer equipment 3,014,105 (1,685,527) 1,328,578 2,528,079 (1,831,564) 696,515Leasehold improvements 2,904,861 (2,614,653) 290,208 2,904,861 (2,469,550) 435,311

Total 8,845,431 (6,401,552) 2,443,879 8,779,974 (6,383,407) 2,396,567

Reconciliation of property, plant and equipment - 2017

Openingbalance

Additions Disposals Depreciation Impairmentloss

Total

Furniture and fixtures 573,081 5,393 - (101,304) (19) 477,151Motor vehicles 14,825 - - (6,588) - 8,237Office equipment 676,835 23,120 (1,163) (358,905) (182) 339,705Computer equipment 696,515 1,199,783 (7,267) (523,267) (37,186) 1,328,578Leasehold improvements 435,311 - - (145,103) - 290,208

2,396,567 1,228,296 (8,430) (1,135,167) (37,387) 2,443,879

Reconciliation of property, plant and equipment - 2016

Openingbalance

Additions Disposals Depreciation Impairmentloss

Total

Furniture and fixtures 682,402 - - (109,321) - 573,081Motor vehicles 21,414 - - (6,589) - 14,825Office equipment 417,571 617,554 - (358,285) (5) 676,835Computer equipment 787,603 423,681 (5,989) (508,648) (132) 696,515Leasehold improvements 577,412 - - (142,101) - 435,311

2,486,402 1,041,235 (5,989) (1,124,944) (137) 2,396,567

Pledged as security

No assets were pledged as security.

Assets subject to finance lease (Net carrying amount)

IT equipment 18,207 98,624Office equipment 194,057 450,677

212,264 549,301

Other information

Property, plant and equipment fully depreciated and still in use (Gross carryingamount)Furniture and fittings - 19Office equipment 12 28Computer Equipment 12 52

24 99

56



140




8. Intangible assets

2017 2016

Cost Accumulatedamortisation


Carrying value Cost Accumulatedamortisation


Carrying value

Computer software 275,544 (229,239) 46,305 1,037,531 (840,802) 196,729

2017

Openingbalance

Amortisation Total

Computer software 196,729 (150,424) 46,305

2016

Openingbalance

Amortisation Total

Computer software 376,501 (179,772) 196,729

9. Deferred income

Movement during the year

Balance at the beginning of the year 288,239,546 264,853,602Additions during the year 191,068,638 200,000,000Income recognition during the year (343,976,297) (176,614,056)

135,331,887 288,239,546

Non-current liabilities - -Current liabilities 135,331,887 288,239,546

135,331,887 288,239,546

Deferred income represents the amounts of government grants not yet disbursed. (Refer to note 1.13 & 25).

10. Finance lease obligation

Minimum lease payments due - within one year 251,565 368,246 - in second to fifth year inclusive 9,600 261,166

261,165 629,412less: future finance charges (9,348) (40,482)

Present value of minimum lease payments 251,817 588,930

Present value of minimum lease payments due - within one year 242,363 337,113 - in second to fifth year inclusive 9,454 251,817

251,817 588,930

Non-current liabilities 9,454 251,817Current liabilities 242,363 337,113

251,817 588,930

These leases are linked to prime lending rate with no escalation and for a period of two to three years.

57



141




10. Finance lease obligation (continued)

The entity's obligations under finance leases are secured by the lessor's title over the leased assets. (Refer to note 7).

The photocopiers, PABX system and ipads under the finance leases are currently depreciated over the lease term of two tothree years.

11. Payables from exchange transactions

Accruals 744,207 1,702,517Gauteng Department of Human Settlements 254,596,885 118,927,318Sundry creditors 30,231 44,487

255,371,323 120,674,322

Accruals - mainly comprise of salary third party payments and other sundry accruals. Accruals are non-interest-bearing andnormally settled on 30 day terms.

Gauteng Department of Human Settlements - represents deposits held and interest accrued. Deposits are held in terms ofa memorandum of agreement to assist the department in expediting payments to subsidised projects. For terms andconditions relating to related parties.(Refer to Note 25).

Sundry creditors comprise staff creditors, credit card balances and overpayments from clients. These are non-interest-bearing and are normally settled on 30 day terms.

12. Provisions

2017

OpeningBalance

Additions Utilisedduring the

year

Total

Provision for leave pay 768,582 819,498 (768,582) 819,498Provision for bonuses 3,718,244 4,117,139 (3,718,244) 4,117,139Provision for salary related expenses 347,462 - (347,462) -

4,834,288 4,936,637 (4,834,288) 4,936,637

2016

OpeningBalance

Additions Utilisedduring the

year

Total

Provision for capital raising fee 2,565,000 - (2,565,000) -Provision for leave pay 622,491 768,582 (622,491) 768,582Provisions for bonuses 3,365,337 3,718,244 (3,365,337) 3,718,244Provision for salary related expenses 297,402 50,060 - 347,462

6,850,230 4,536,886 (6,552,828) 4,834,288

Provision for capital raising was based on the outstanding balance owed to capital raisers. The timing of the payment wasuncertain.

Provision for leave is based on current salary rates and included in the statement of financial position. A provision is madefor the estimated liability as a result of services rendered by employees up to reporting date.

Provision for bonus is based on management's best estimate of expenditure required to settle the present obligation at theend of the reporting period. The obligation will be settled in July 2017.

Provision for salary related expenses was based on management best estimate on PAYE expense owed to SARS. Theamount was paid.

58



142




13. Operating lease liability

Non-current liabilities 182,341 --

182,341 -

Operating lease rentals represents rentals payable by the Trust to Acucap Management Services (Pty) Ltd for officepremises. The three year lease expires in June 2019 and had an escalation of 8% annually.

Minimum lease payments- within one year 2,541,830 -- in second to fifth year 2,745,274 -

5,287,104 -

14. Revenue

Revenue from non-exchange transaction - Deferred income transferred to revenue -Government grants

343,976,297 176,614,056

Revenue from exchange transactions - Interest received from banks 48,646,070 42,607,547Revenue from exchange transactions - Interest received from loans and receivables asrestated (Refer to note 35)

57,741,126 31,643,650

Revenue from exchange transactions - Interest calculated using the effective interestrate method from loans and receivables. (Refer to note 3).

19,140,891 10,358,987

469,504,384 261,224,240

15. Interest received from banks

Current accounts 13,114,119 7,162,280Capital account 35,500,193 35,417,944Call accounts 31,758 27,323

48,646,070 42,607,547

16. Other income

Contract recovery costs 3,606,712 5,912,244Decrease in provision for doubtful debts 13,519,938 10,898,415Profit on sale of assets 143,383 48,153Department of Trade and Industry 1,605,469 2,969,361Moratorium extension fee 744,000 202,542

19,619,502 20,030,715

Contract recovery costs are costs charged to borrowers for the recovery of the GPF's operational expenditure. (Refer tonote 3).

Decrease in provision for doubtful debts relates to, BM Molefi Properties 241(Pty) Ltd - Kgorong Estate, Highlands UrbanLiving (Pty) Ltd - Highlands Lofts and Tenitor Properties (Pty) Ltd - The Ridge Hotel.

Profit on sale of assets disposed during the year (refer to note 7).

Income received from the Department of Trade and Industry is for shared expenses for the Entrepreneur EmpowermentProperty Fund. (Refer to note 25).

Moratorium extension fee relates to an additional fee charged to clients for extending the moratoriums. (Refer to note 3).

17. Operating surplus

Operating surplus for the year is stated after accounting for the following:

Income from controlled entitiesExternal audit fee 1,033,393 1,009,816

59



143




17. Operating surplus (continued)Internal audit fee 906,016 582,246

1,939,409 1,592,062

Operating lease chargesPremises Contractual amounts 2,569,880 3,010,434 Utilities 682,443 534,703Equipment Contractual amounts 22,106 22,944

3,274,429 3,568,081

Profit on sale of assets 143,383 48,153Impairment on property, plant and equipment 37,387 137Amortisation on intangible assets 150,422 179,770Depreciation on property, plant and equipment 1,135,169 1,124,946Employee costs 36,651,113 33,974,791

18. General expenses

Auditors remuneration 1,939,409 1,592,062Bank charges 48,281 48,009Consulting and professional fees 16,228,593 11,445,397Entertainment 174,831 106,622Insurance 397,504 317,940Marketing 2,133,098 593,499Magazines, books and subscriptions 181,750 136,744Fuel and oil 8,139 5,920Postage and courier 7,192 814Printing and stationery 429,916 295,627Security 11,004 11,767Telephone and fax 763,093 699,406Training 735,439 117,785Travel 610,728 228,321Offsite storage 38,580 18,438

23,707,557 15,618,351

19. Fair value adjustments

Day one loss on finance lease - (14,838)Provisions for bonuses 14,146 25,673Provisions for leave pay 1,243 7,839Financial instruments at fair value 206,378 (206,378)Social benefit on loans and receivables (42,980,267) (29,902,458)

(42,758,500) (30,090,162)

Day one loss on finance lease related to the difference in the market value of the finance lease and the future minimumlease payments during the year.

The fair value adjustment on the provision for bonuses relates to the timing the payment in the prior year. (Refer to note 12).

The fair value adjustment on the provision for leave pay relates to the timing the payment in the prior year. (Refer to note12).

The financial instruments at fair value relates to the timing the payment in the prior year. (Refer to note 6).

The social benefit adjustment on loans and receivables relates to the discounted rates the GPF provides to borrowers.(Refer to note 3).

60



144




20. Impairment (loss)/reversal of loans and receivables from exchange transactions

Impairment loss - Aquarella Investment 360 (Pty) Ltd - 85 - 87 Quartz StreetThe client was in breach of the contract for non-payment resulting in a provision fordoubtful debts. (Refer note 3).

(21,356) (108,083)

Bixowize CC t/a Kingdom Properties CC - Erf 278 Primrose HillThe loan was restructured and the moratorium on payments was extended. (Refernote 3).

(452,194) -

Impairment loss - BUA Africa (Pty) Ltd - Erf 2918 Kempton parkThe loan was restructured and the moratorium on payments was extended. (Refernote 3)

- (24,804)

Impairment loss - Castle Crest 80 (Pty) Ltd - Erf 233 Kempton ParkDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

- (145,144)

Impairment loss - Certum Estate 130 (Pty) Ltd - Erf 564, Bertrams, JHBDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

- (55,896)

Impairment loss - Clare Water (Pty) Ltd - Erf 1509 Discovery, RoodepoortThe loan was restructured and the moratorium on payments was extended. (Refer note3).

(520,502) (78,531)

Impairment loss - Clidet No. 1024 (Pty) Ltd - 44 WanderersThe loan was restructured and the moratorium on payments was extended. (Refer note3).

(73,333) -

Impairment loss - Comu Property Developers CC - 3103 Glen MaraisThe loan was in arrears which has resulted in an impairment. (Refer note 3).

(30,458) (11,560)

Impairment loss - Comocap (Pty) Ltd - 88 Relly StreetThe loan was in arrears which has resulted in an impairment. (Refer note 3).

(40,876) (6,680)

Impairment loss - DNM Estate (Pty) Ltd - Erf 517 & 518 City and SuburbanThe loan was in arrears which has resulted in an impairment. (Refer note 3).

(34,083) (53,982)

Impairment loss - Echo Canyon Trading (Pty) Ltd - 463 and 465 Hanny StreetThe loan needs restructuring which has resulted in an impairment. (Refer note 3)

(27,095) -

Impairment loss - Fundzo Trading (Pty) Ltd - Portion 15 of Erf 8489 Protea NorthThe loan was restructured and the moratorium on payments was extended. (Refernote 3).

(123,274) (11,999)

Impairment loss reversal - Greater Germiston Inner City Housing Company Phase 11(Pty) Ltd

- 4,000,000

The client advised of their intention to settle for the cost of the investment - -Impairment loss reversal - Greater Germiston Inner City Housing Company PharoePark (Pty) Ltd

- 4,000,000

The client advised of their intention to settle for the cost of the investment - -Impairment (loss) / reversal - Highlands Urban Living (Pty) Ltd - Highlands LoftsThe loan was in arrears which has resulted in an impairment. (Refer note 3).

19,356 (8,553)

Impairment loss - Indigo Kulani Properties (Pty) Ltd - Erf 1676 BenoniDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(91,144) -

Impairment loss - Ikamvelihle Enterprises CC - Erf 953-956 BereaThe loan requires an additional moratorium due to delays in construction resulting inimpairment of the loan. (Refer note 3).

(147,720) (64,927)

Impairment loss - Kertrade CC - Erf 564 & 566 Springs (48,581) -The loan requires an additional moratorium due to delays in construction resulting inimpairment of the loan. (Refer note 3).

- -

Impairment Loss - Landopoint (Pty) Ltd Erf 905,906 and 907 KenilworthDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(19,373) (8,990)

Impairment loss - Lukataedi (Pty) Ltd - Erf 739 Pretoria NorthThe loan was in arrears which has resulted in an impairment. (Refer note 3)..

(179,185) (41,884)

Impairment loss Makabongwe Property Holding (Pty) Ltd - Erf 983 JohannesburgThe loan was in arrears which has resulted in an impairment. (Refer note 3).

(50,712) -

Impairment loss - Meilijian Construction and Development CC - Erf 1614 KemptonParkThe loan was in arrears which has resulted in an impairment. (Refer note 3).

(16,614) -

Impairment loss - Meilijian Construction and Development CC - Erf 27 Kempton ParkThe loan was in arrears which has resulted in an impairment. (Refer note 3).

(14,664) -

Impairment loss - Meilijian Construction and Development CC - Erf 232 Kempton ParkThe loan was in arrears which has resulted in an impairment. (Refer note 3).

(3,165) -

61



145




20. Impairment (loss)/reversal of loans and receivables from exchange transactions (continued)Impairment loss - Meilijian Construction and Development CC - Erf 24 Kempton ParkThe loan was in arrears which has resulted in an impairment. (Refer note 3).

(13,097) -

Impairment loss - Michaelson Investments (Pty) Ltd - Erf 658 TroyevilleThe loan requires needs to be restructured due to delays in construction resulting inimpairment of the loan. (Refer note 3).

(26,219) -

Impairment loss - Muma Properties Investments (Pty) Ltd - Erf 978 Pretoria NorthDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

- (22,698)

Impairment loss - NBLR Properties (Pty) Ltd - Erf 2551, 2552 & 2553 Fleurhof Ext 20Due to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(32,937) -

Impairment loss - Nelisa Property (Pty) Ltd - Erf 388 WindsorThe loan needs to be restructured due to delays in construction resulting in impairmentof the loan. (Refer note 3).

(10,098) (27,689)

Impairment loss - Nonkwelo (Pty) Ltd - Erf 10 & 11 Hunter StreetDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(608,464) (37,985)

Impairment loss - Norvena Property Consortium - O'Reilly Street (94,388) (13,543)Due to delays in construction the moratorium on payments was extended resulting inimpairment the loan. (Refer note 3).

-

Norvena Property Consortium - Novena CourtDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(98,633) -

Impairment loss - Sabiglo (Pty) Ltd - Erf 301 Windsor West, RandburgThe loan requires needs to be restructured due to delays in construction resulting inimpairment of the loan. (Refer note 3).

(5,887) (9,134)

Impairment loss - Simelani Business Solutions (Pty) Ltd - Erf 2682 Kempton ParkDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(6,693) -

Impairment loss - Shukumani Trading Enterprises (Pty) Ltd - Erf 550 BertramsThe loan requires needs to be restructured due to delays in construction resulting inimpairment of the loan. (Refer note 3).

(9,771) (9,365)

Impairment loss - SOA Residential Village (Pty) Ltd - Erf 1532 Selcourt SpringsDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(84,594) (50,922)

Impairment loss - Take Shape Properties 75 CCDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(64,810) (26,623)

Impairment loss - Tenitor Properties (Pty) Ltd - The Ridge HotelThe loan was renegotiated and the moratoriums on payments extended as the buildingwas hijacked.(Refer note 3).

(114,584) -

Impairment loss - Tsebo Consumables Supplies (Pty) Ltd - Erf 256 KemptonThe loan was in arrears which has resulted in an impairment.(Refer note 3).

(352,267) (3,618)

Impairment loss - Tumaini Properties and Real Estate CC - Erf 52&53 NewDoornfonteinDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3)..

(43,624) -

Impairment loss - Valotorgue199CC - Erf 757 Pretoria North Due to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(58,442) (19,264)

Impairment loss - Zakhele Investments CC - Erf 257 Kempton ParkDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(246,854) (12,255)

Impairment loss - Zwide & Dewa Investments (Pty) Ltd - Erf 424 & 425 RhodesfieldDue to delays in construction the moratorium on payments was extended resulting inimpairment of the loan. (Refer note 3).

(396,291) -

(4,142,626) 7,145,871

62



146




21. Finance costs

Finance lease 30,473 51,293Interest on salary related expense 35,810 -

66,283 51,293

Finance cost comprises of interest amortised for the finance lease.

Interest on salary-`related expense relates to tax that was not paid over to SARS timeously. As a result interest wascharged. (Refer to note 34).

22. Employee related costs

Basic 34,367,202 31,453,965Medical aid - company contributions 845,937 919,667Life cover 225,019 240,533Retirement annuity 1,212,955 1,360,626

Refer to note 17 36,651,113 33,974,791

23. Taxation

No provision has been made for the period ended March 2017 tax as the Trust has been granted tax exemption status bythe South African Revenue Service in terms of Section 30 of the Income Tax Act, and receipts and accruals are exemptfrom income tax in terms of Section 10 (1) (CN) of the Income Tax Act. The status quo was applicable for the 2018 year.

24. Commitments

Project Funding Commitments

Ace Pallets (Pty) Ltd - Portion 26 of Erf 381 Vanderbijlpark Central West 5 Extension 1 - 2,747,308Begin All Investments (Pty) Ltd - Erf 89, 90 and 91 Bertrams 3,777,609 3,777,609Bixowize CC t/a Kingdom Property Enterprises - Erf 278 Primrose Hill 836,366 4,024,202Bravo Enterprise and Projects (Pty) Ltd - Erf 231 Kempton Park located on 26Kempton

2,933,852 6,229,500

Bridge City Housing Consortium (Pty) Ltd - Portion 196 of Erf 7305 Chiawelo Extension2, Soweto

10,434,879 -

Bruzar Properties (Pty) Ltd - Erf 630 Kempton Park 9,180,554 5,597,063BUA Africa (Pty) Ltd - Erf 2918 Kempton Park - 20,728,848Cape Gannet Properties 175 (Pty) Ltd - Erf 42 Kempton Park - 200,436Certum Estate 130 (Pty) Ltd Previously Obtein- Erf 564, Bertrams, JHB - 131,612Cicima Property Management Solutions (Pty) Ltd - Erf 1686 Benoni 11,219,314 11,830,566Clidet no 1024 (Pty) Ltd - 44 Wanderers 14,213,506 14,213,506Eable Properties (Pty) Ltd - Erf 8186 Olievenhoutbosch 11,677,609 11,677,609Echo Canyon Trading (Pty) Ltd - 463 and 465 Hanny Street 32,333 402,333EGC Properties CC - Browning Street 1,178,789 5,748,496EGC Properties CC - Erf 101 Wolhuter, Jeppestown 4,633,218 -Egon House (Pty) Ltd - ERF 1171, City & Suburban, Johannesburg 4,755,935 -Erf 85 Newtown CC - Erf 269 Richmond - 3,159,423Fundzo Trading (Pty) Ltd - Portion 15 of Erf 8489 Protea North 16,209,051 1,415,602FV Trading Enterprises (Pty) Ltd – Erf 193 Duncanville 5,683,220 8,023,111GNI Real Estate - Erf 113 Pretoria North - 4,048,084Goldburg Property Development (Pty) Ltd - Erf 72 Kempton Park - 3,741,455Golden City Property (Pty) Ltd - Erf 533 & 534 Germiston 1,005,984 2,676,555Hectofield (Pty) Ltd - Erf 644 Pretoria North 4,847,610 -Hoewe 15 Doreg Landbouhoewes (Pty) Ltd - Ervens 1499 & 1450 Karen Park Ext 52,Pretoria

8,636,941 16,608,288

Ifizo (Pty) Ltd - Erf 733 Pretoria North 4,360,273 4,360,273Indigo Kulani Architects & Urban Planners (Pty) Ltd - Erf 1676 Benoni 142,696 -Intuthuko Fund 1,187,847 1,187,847Korema Property Group (Pty) Ltd - Erf436 & 437 Bellevue East, JHB 2,072,631 3,397,400KDM Properties (Pty) Ltd - Erf 403 - 62,116Kertrade 24CC - Erf 564 & 566 Springs - 19,671Kimovax (Pty) Ltd - Erf 419 and Erf 420 Cresslawn, Kempton Park 4,812,143 5,486,834

63



147




24. Commitments (continued)Klatrade 723 (Pty) Ltd - Erf 8341 & 8342 45,000,000 -KTN Property Management (Pty) Ltd - Parklane Hotel - 655,101Lakeside Development Company (Pty) Ltd - Erf 1373 Leachville 2,394,050 3,033,894Landopoint (Pty) Ltd - Erf 905, 906 and 907 Kenilworth 1,853,579 2,047,071Lavigen Lofts (Pty) Ltd - Erf 134 Bedworth Park 2,840,009 -Lavender Tree (Pty) Ltd - Erf 93, 94 and 95 Bertrams 4,258,425 4,258,425Limapong Housing (Pty) Ltd - Erf 96, 121 and 122 Bertrams 3,777,601 3,777,601Mahlahla Advancement Dynamics CC - Erf 442 Wolmer Pretoria - 4,368,890Makabongwe Property Holding (Pty) Ltd - Erf 983 Johannesburg - 3,677,823Masakhe Apartment (Pty) Ltd - Portion1 of erf 416, Linden Ext, Randburg 7,961,922 -Masiszane Group (Pty) Ltd - Portion 0 of Erf 2909 Jeppestown 4,358,862 4,843,300Meilijian Construction and Development CC - Erf 3597, Pomona Ext 75 - 12,720,516Michaelson Investments (Pty) Ltd - Erf 658 Troyeville 3,748,563 3,748,563Mokogoko Consulting CC - ERF 1760 Ga-Rankuwa, Unit 1 2,102,555 2,102,555Mookehla Trading 001 (Pty) Ltd - Erf 883 Spartan Ext 26 Kempton Park - 4,833,366MSX Properties 001 (Pty) Ltd - 2546, 2547, 2548, 2549 & 2550 Fleurhof Ext 28Roodepoort

19,178,800 -

NBLR Properties (Pty) Ltd - Ext 2551,2552 & 2553 Fleurhof Ext 20 - 2,804,755Nelisa Properties (Pty) Ltd - Erf 388 Windsor 2,912,793 2,916,607Ninarich Trading 3 (Pty) Ltd - Betty Street Princint - 145,807Nonkwelo (Pty) Ltd - Erf 10 & 11 Hunter Street 24,912,951 493,483Norvena Property Consortium - O'Reilly Street - 8,566,021Ordicode (Pty) Ltd - Erf 2242, 2243, 2248 and 2249 Johannesburg 2,801,106 3,266,699Phahamo Resources (Pty) Ltd - Erf 8993 Olievenhoutbosch Ext 36 Centurion - 13,056,800Property Best Investment (Pty) Ltd - Erf 3834 Eersterus Ext6 22,918,251 22,918,251Property Kalcha (Pty) Ltd - Portion 1&2 of Erf 1871 Albertville, Randburg 118,601 1,790,532Proxisol (Pty) Ltd - Erven 31,32,33,59 & 60 Bertrams - 8,591,312Rainbow Beach Trading 261 (Pty) Ltd - Sondela Village Daggafontein - 650,000Redformationz Holdings (Pty) Ltd - Erf 4862 Birch Acres Ext 32 6,264,925 9,745,745Sabiglo (Pty) Ltd - Erf 301 Windsor West, Randburg 8,004,369 8,004,369Sakhazonke Investments (Pty) Ltd - Erf 252, Kempton Park - 6,931,275Seraph Investment Pty Ltd - Erven 488, 489, 490, and 491 New Doornfontein, City 1,795,244 -Sam Lubbe Investments CC - Erf 1654, Germiston - 8,227,219Sethitho Projects CC - Erf 1191, Rayton Extension 7 700,061 3,306,281Sheran Investments (Pty) Ltd - Klippoortjie Agricultural Lots 3,481,113 7,615,713Shukumani Trading Enterprises (Pty) Ltd - Erf 550 Bertrams 1,116,423 2,071,401Somnitron (Pty) Ltd - Pension Backed loans 15,000,000 15,000,000Stormstrong (Pty) Ltd - Erf 299, Windsor, Randburg 3,060,866 3,078,468Sunnilaws (Pty) Ltd - Glen Marais Extension 116 - 18,311,758Take Shape Properties 75 CC - Erf 4510, JHB - 370,295Toproot Management (RF) (Pty) Ltd - Erf 1335 Pennyville 8,603,607 8,603,607Toproot Management (RF) (Pty) Ltd - PTN 47 of Erf 2665 Riverlea 10,858,719 10,858,719Tumaini Properties and Real Estate CC - Erf 52 & 53 New Doornfontein 892,090 915,346Unires Project 1 (Pty) Ltd - Ka Isaka Seme Student Village - 28,678,798Vuttomi Group (Pty) Ltd - Erf 347, 348, 349 and 350 Eldorette Ext 34 Pretoria North 7,120,740 10,715,300Watershed Properties (Pty) Ltd - Portion 202 of farm 265 Ruimsig Ext 102 37,154,017 -Xylo Trading 253 CC - Portion 3 of Erf 2834 Ga-Rankuwa unit 2 9,319,477 9,319,477Yeast City Housing - Thembelihle Village - 48,085,150Zwide & Dewa Investments (Pty) Ltd - Erf 424 & 425 Rhodesfield 858,941 20,868,715

389,201,020 477,470,755

The obligation to Ace Pallets (Pty) Ltd - Portion 26 of Erf 381 Vanderbijlpark Central West 5 Extension 1 was approved bythe Trustees. The borrower has fully drawn down. (Refer to note 3).

The obligation to Begin All Investments (Pty) Ltd - Erf 89,90 and 91 Bertrams was approved by the Trustees. R280,817 waspaid out to the transferring attorneys as a guarantee. (Refer to note 4.)

The obligation to Bixowize CC t/a Kingdom Property Enterprises - Erf 278 Primrose Hill was approved by the Trustees. Theborrower has started drawing down. (Refer to note 3).

The obligation to Bravo Enterprise and Projects (Pty) Ltd - Erf 231 Kempton Park located on 26 Kempton was approved bythe Trustees. The borrower has started drawing down. (Refer to note 3).

64



148




24. Commitments (continued)

The obligation to Bridge City Housing Consortium (Pty) Ltd - Portion 196 of Erf 7305 Chiawelo Extension 2, Soweto locatedon 26 Kempton was approved by the Trustees.

The obligation to Bruzar Consulting Engineers (Pty) Ltd - Erven 484, 485 & 487 Ferndale was approved by the Trustees.The loan has been restructured and the loan amount has increased. The borrower has started drawing down. (Refer to note3).

The obligation to BUA Africa (Pty) Ltd - Erf 2918 Kempton Park was approved by the Trustees. The borrower has fullydrawn down. (Refer to note 3).

The obligation to Cape Gannet Properties 175 (Pty) Ltd - Erf 42 Kempton Park was approved by the Trustees. The borrowerhas fully drawn down. (Refer to note 3).

The obligation to Certum Estate 130 (Pty) Ltd Previously Obtein Investments (Pty) Ltd was approved by the Trustees. Theborrower has fully drawn down. (Refer to note 3).

The obligation to Cicima Property Management Solutions (Pty) Ltd - Erf 1686 Benoni was approved by the Trustees. Theborrower has started drawing down. (Refer to note 3).

The obligation to Clarewater (Pty) Ltd - Discovery, Roodepoort was approved by the Trustees. The borrower has starteddrawing down. (Refer to note 3).

The obligation to Clidet no 1024 (Pty) - 44 Wanderers was approved by the Trustees. The loan has been restructured andthe loan amount has increased. The borrower has started drawing down. (Refer to note 3).

The obligation to Eable Properties (Pty) Ltd - 8186 Olievenhoutbosch was approved by the Trustees.

The obligation to Echo Canyon Trading (Pty) Ltd - 463 and 465 Hanny Street was approved by the Trustees. The borrowerhas started drawing down. (Refer to note 3).

The obligation to EGC Properties CC - Browning Street was approved by the Trustees. The borrower has started drawingdown. (Refer to note 3).

The obligation to EGC Properties CC - Erf 101 Wolhuter, Jeppestown was approved by the Trustees.

The obligation to Egon House (Pty) Ltd - ERF 1171, City & Suburban, Johannesburg was approved by the Trustees.

The obligation to Erf 85 Newtown CC - Erf 269 Richmond was approved by the Trustees. The borrower has fully drawndown.

The obligation to Fundzo Trading (Pty) Ltd - Portion 15 of Erf 8489 Protea North was approved by the Trustees. The loanwas restructured and the amount has been increased. The borrower has started drawing down. (Refer to note 3).

The obligation to FV Trading Enterprises (Pty) Ltd - Erf 193 Duncanville was approved by the Trustees. The borrower hasstarted drawing down. (Refer to note 3).

The obligation to GNI Real Estate - Erf 113 Pretoria North was approved by the Trustees. The borrower has fully drawndown.

The obligation to Goldburg Property Development (Pty) Ltd - Erf 72 Kempton Park was approved by the Trustees. Theborrower has fully drawn down.

The obligation to Golden City Property (Pty) Ltd - Erf 533 & 534 Germiston was approved by the Trustees. The borrowerhas started drawing down. (Refer to note 3).

The obligation to Hectofield (Pty) Ltd - Erf 644 Pretoria North was approved by the Trustees. R873,490 was paid out to thetransferring attorneys as a guarantee. (Refer to note 4.)

The obligation to Hoewe 15 Doreg Landbouhoewes (Pty) Ltd - Ervens 1499 & 1450 Karen Park Ext 52 was approved by theTrustees. The borrower has started drawing down. (Refer to note 3).

The obligation to Ifizo (Pty) Ltd - Erf 733 Pretoria North was approved by the Trustees.

65



149





The obligation to Ikamvelihle Trading Enterprises CC - Erf 953-956 Berea was approved by the Trustees. The loan wasrestructured and the loan amount has been increased. The borrower has started drawing down. (Refer to note 3).

The obligation to Indigo Kulani Properties(Pty) Ltd - Erf 1676 Benoni was approved by the Trustees. The loan wasrestructured and the loan amount has been increased. The borrower has started drawing down. (Refer to note 3).

The obligation to Intuthuko Fund (Pty) Ltd was approved by the Trustees. The borrower has started drawing down. (Refer tonote 3).

The obligation to Korema Property Group (Pty) Ltd - Erf 436 & 437 Bellevue East Johannesburg was approved by theTrustees. The borrower has started drawing down. (Refer to note 3).

The obligation to KDM Properties (Pty) Ltd - Erf 403 was approved by the Trustees. The borrower has fully drawn down.

The obligation to Kertrade 24 CC - Erf 564 and 566 Springs was approved by the Trustees. The borrower has fully drawndown.

The obligation to Klatrade 24 CC Erf 564 & 566 Springs was approved by the Trustees.

The obligation to Kimovax (Pty) Ltd - Erf 419 and Erf 420 Cresslawn Kempton Park was approved by the Trustees. Theborrower has started drawing down. (Refer to note 3).

The obligation to KTN Property Management (Pty) Ltd - Parklane Hotel was approved by the Trustees. The borrower hasfully drawn down. (Refer to note 3).

The obligation to Lakeside Developments (Pty) Ltd - Erf 1373 Leachville was approved by the Trustees. The borrower hasstarted drawing down. (Refer to note 3).

The obligation to Landopoint (Pty) Ltd - Erf 905,906 and 907 Kenilworth was approved by the Trustees. The borrower hasstarted drawing down. (Refer to note 3).

The obligation to Lavigen Lofts (Pty) Ltd - Erf 134 Bedworth Park was approved by the Trustees.

The obligation to Lavender Tree (Pty) Ltd - Erf 93, 94 and 95 Bertrams was approved by the Trustees.

The obligation to Limapong Housing (Pty) Ltd - Erf 96, 121 and 122 Bertrams was approved by the Trustees. R280,817 waspaid out to the transferring attorneys as a guarantee. (Refer to note 4.)

The obligation to Mahlahla Advancement Dynamics CC - Erf 442 Wolmer Pretoria was approved by the Trustees. Theborrower has fully drawn down.

The obligation to Makabongwe Property Holding (Pty) Ltd - Erf 983 Johannesburg was approved by the Trustees. Theborrower has fully drawn down.

The obligation to Masakhe Apartment (Pty) Ltd - Portion 1 of Erf 416, Linden Ext, Randburg was approved by the Trustees.

The obligation to Masiszane Group (Pty) Ltd - Portion 0 of Erf 2909 Jeppestown was approved by the Trustees.

The obligation to Meilijian Construction and Development CC - Erf 3597, Pomona Ext 75 was approved by the Trustees.The borrower has fully drawn down. (Refer to note 3).

The obligation to Michaelson Investments (Pty) Ltd - Erf 658 Troyeville was approved by the Trustees. The borrower hasstarted drawing down. (Refer to note 3).

The obligation to Mokogoko Consulting CC - Erf 1760 Ga-Rankuwa was approved by the board.

The obligation to Mookehla Trading 001 (Pty) Ltd - Erf 883 Spartan Ext 26 Kempton Park was cancelled during the year.

The obligation to MSX Properties 001 (Pty) Ltd - 2546, 2547, 2548, 2549 & 2550 Fleurhof Ext 28 Roodepoort was approvedby the Trustees.

The obligation to NBLR Properties (Pty) Ltd - Fleurhof Manor was approved by the Trustees. The borrower has fully drawndown. (Refer to note 3).

66



150





The obligation to Nelisa Properties (Pty) Ltd - Erf 388 Windsor was approved by the Trustees. The borrower has starteddrawing down. (Refer to note 3).

The obligation to Ninarich Trading 3 (Pty) Ltd - Betty Street Precinct was approved by the Trustees. The borrower has fullydrawn down.

The obligation to Nonkwelo (Pty) Ltd - Erf 10 & 11 Hunter Street was approved by the Trustees. The borrower has starteddrawing down. (Refer to note 3).

The obligation to Norvena Property Consortium - O' Reilly Street was approved by the Trustees. The loan has beenrestructured and the loan amount has been increased. The borrower has fully drawn down. (Refer to note 3).

The obligation to Ordicode (Pty) Ltd Erf 2242, 2243, 2248 and 2249 Johannesburg was approved by the Trustees. Theborrower has started drawing down. (Refer to note 3).

The obligation to Phahamo Resources (Pty) Ltd - Erf 8993 Olievenhoutbosch Ext 36 Centurion was approved by theTrustees. The borrower has fully drawn down. (Refer to note 3).

The obligation to Property Best Investments (Pty) Ltd - Erf 3834 Eersterus Ext 6 was approved by the Trustees.

The obligation to Property Kalcha (Pty) Ltd - Portion 1&2 of Erf 1871 Albertville, Randburg was approved by the Trustees.The borrower has started drawing down. (Refer to note 3).

The obligation to Proxisol (Pty) Ltd - Erven 31, 32, 33, 59 & 60 Bertrams was approved by the Trustees. The borrower hasfully drawn down. (Refer to note 3).

The obligation to Rainbow Beach Trading 261 (Pty) Ltd - Sondela Village Daggafontein was approved by the Trustees. Theborrower has fully drawn down.

The obligation to Redformationz Holdings (Pty) Ltd - Erf 4862 Birch Acres Ext 32 was approved by the Trustees. Theborrower has started drawing down. (Refer to note 3).

The obligation to Sabiglo (Pty) Ltd - Erf 301 Windsor West Randburg was approved by the Trustees. The borrower hasstarted drawing down. (Refer to note 3).

The obligation to Sakhazonke Investments (Pty) Ltd - Erf 252 Kempton Park was approved by the Trustees. The borrowerhas fully drawn down.

The obligation to Seraph Investment Pty Ltd - Erven 488, 489, 490, and 491 New Doornfontein, City was approved by theTrustees.

The obligation to Sam Lubbe Investments CC - Erf 1654 Germiston was approved by the Trustees. The borrower has fullydrawn down. (Refer to note 3).

The obligation to Sethitho Projects CC - Erf 1191 Rayton Extension 7 was approved by the Trustees. The borrower hasstarted drawing down. (Refer to note 3).

The obligation to Sheran Investment (Pty) Ltd - Klippoortjie Agricultural Lots was approved by the Trustees.

The obligation to Shukumani Trading Enterprises (Pty) Ltd - Erf 550 Bertrams was approved by the Trustees. The borrowerhas started drawing down. (Refer to note 3).

The obligation to Somnitron (Pty) Ltd for pension backed loans was approved by the Trustees.

The obligation to Stormstrong (Pty) Ltd - Erf 299 Windsor Randburg was approved by the Trustees.

The obligation to Sunnilaws Property (Pty) Ltd - Glen Marais Ext 166 Township was cancelled during the year.

The obligation to Take Shape Properties 75 CC - Erf 4510 Johannesburg was approved by the Trustees. The borrower hasfully drawn down. (Refer to note 3).

The obligation to Toproot Management (Pty) Ltd - Erf 1335 Pennyville was approved by the Trustees.

The obligation to Toproot Management (Pty) Ltd - Erf PTN 47 of Erf 2665 Riverlea was approved by the Trustees.

67



151





The obligation to Tumaini Properties and Real Estate CC - Erf 52 & 53 New Doornfontein was approved by the Trustees.The borrower has started drawing down. (Refer to note 3).

The obligation to Unires Project 1 (Pty) Ltd - Ka Isaka Seme Student Village was cancelled during the year.

0The obligation to Watershed Properties (Pty) Ltd - Portion 202 of farm 265 Ruimsig Ext 102 was approved by theTrustees.

The obligation to Vuttomi Group (Pty) Ltd - Erf 347, 348, 349 and 350 Eldorette Ext 34 Pretoria North was approved by theTrustees. The borrower has started drawing down. (Refer to note 3).

The obligation to Unires Project 1 (Pty) Ltd - Ka Isaka Seme Student Village was cancelled during the year.

The obligation to Xylo Trading 253 CC - Portion 3 of Erf 2834 Ga-Rankuwa Unit 2 was approved by the Trustees.

The obligation to Yeast City Housing (Pty) Ltd - Thembelihle Village was approved by the Trustees. The borrower has fullydrawn down.

The obligation to Zwide & Dewa Investments (Pty) Ltd - Erf 424 & 425 Rhodesfield was approved by the Trustees. Theborrower has started drawing down. (Refer to note 3).

25. Related parties

`

RelationshipsControlling entity Gauteng Department of Human SettlementsPartner of Entrepreneur Property Fund Department of Trade and Industry

Related party balances

The Trust was founded by the Gauteng Department of Human Settlements as an independent entity in the form of a non-profit Trust. The Trust was established and registered in terms of the Trust Property Control Act.

Gauteng Department of Human Settlements Grants received 191,068,638 200,000,000

The Trust received a government grant during the year of R191,068,638 (2016:R200,000,000). (Refer to note 9)

Gauteng Department of Human Settlements Subsidies programme 43,111,455 118,927,318Mega Projects programme 211,485,430 -

254,596,885 118,927,318

A service level agreement has been entered into between the Trust and the Founder where the Trust expedites paymentsto contractors and consultants for various projects (Refer to note 11).

Related party transactions

Non Executive Trustees feesL Mthimunye - Bakoro (Chairperson Fees) 243,981 -Z Fihlani (Resigned 17 October 2016) 261,761 331,965R Kalidass 57,523 -L Khangala (Resigned 17 October 2016) 232,228 368,436M Lehobye 131,461 -M Leshabane (Resigned 17 October 2016) 162,078 255,188L Makibinyane (Resigned 17 October 2016) 134,509 153,137D Maphatiane 361,865 242,792S Mbanjwa (Resigned 17 October 2016) 172,429 323,815C Motsepe 121,921 -P Mphahlele 304,031 293,649B Nzo 72,956 -T Sukazi 139,669 -

2,396,412 1,968,982

68



152




25. Related parties (continued)

Executive Management - Chief Executive OfficerBasic 2,537,464 2,253,702Performance bonus 894,815 730,460Retirement annuity contribution, medical aid and life cover 278,915 225,310

3,711,194 3,209,472

Executive Management - Chief Financial OfficerBasic 2,001,887 1,839,217Performance bonus 436,918 427,057Retirement annuity contribution, medical aid and life cover 134,942 124,102

2,573,747 2,390,376

Executive Management - Chief Investment OfficerBasic 1,975,821 1,815,268Performance bonus 409,958 422,024Retirement annuity contribution, medical aid and life cover 133,785 123,229

2,519,564 2,360,521

Management considers the Trustees and Executive Management to be key management. Trustees do not receive pensionentitlement from the Trust.

Department of Trade and IndustryEntrepreneur Empowerment Property Fund 1,605,469 2,969,361

The GPF has entered into an agreement with the Department of Trade and Industry (DTI) whereby 50% of the consultingfor the Entrepreneur Empowerment Property Fund's expenses paid by the Trust are reimbursed by the DTI. (Refer to note16).

26. Financial risk management and objectives

Objective

The Trust's principal financial instruments comprise of financial instruments at fair value, loans and receivables fromexchange transactions, cash and cash equivalents, and receivables from exchange transactions. The non-financialliabilities are finance lease and provisions. The main purpose of the financial instruments at fair value, loans andreceivables from exchange transactions and cash and cash equivalents is to assist Social Housing Institutions to leveragefunding from private financial institutions, in line with one of the objectives of the Trust. The receivables from exchangetransactions, payables from exchange transactions, finance lease and obligations arise directly from the Trust's operations.

The risks arising from the Trust's financial instruments are credit risk, interest rate risk and liquidity risk. The Board ofTrustees reviews and agrees policies for managing these risks.

The objective of managing financial instrument risk is to safeguard the Trust assets whilst still enabling fulfilment of theTrust mandate. The Trust's method of measuring the risks mentioned below involves detailed project feasibility, regularproject monitoring and management.

Liquidity risk

The Trust manages liquidity risk by granting of loans to borrowers for affordable housing through proper management ofworking capital, capital expenditure and actual vs forecasted cash flows and its cash management policy. Liquidity risk isthe risk arising from default of the counterparty. The objective of managing liquidity risk is to safeguard the Trust assetswhilst still enabling fulfilment of the Trust mandate. The Trust manages liquidity risk through regular monitoring of financialassets. The forecasted cash flows considers the maturity of its financial assets and project cash flows from operations.Adequate reserves and liquid resources are also maintained. The following table sets forth details of the remainingcontractual maturities of financial assets and liabilities as at 31 March 2017. Liquidity risk is currently 25% (2016:32%).Liquidity risk is calculated by dividing the financial and non-financial liabilities by the financial assets as per the table shownbelow:

69



153



Notes to the Annual Financial StatementsFigures in Rand

26. Financial risk management and objectives (continued)Financial Assets 2017 Due or due

not later thanone month

Due later thanone monthbut not laterthan threemonths

Due later thanthree monthsbut not laterthan one year

Due later thanone year butnot later thanfive years

Due later thanfive years

Total

Loans and receivables fromexchange transactions

5,229,025 15,139,896 59,525,640 566,919,311 1,106,069,485 1,752,883,357

Cash and cash equivalents 870,040,128 - - - 638,222 870,678,350Receivables from exchangetransactions

6,528,539 - - - - 6,528,539

881,797,692 15,139,896 59,525,640 566,919,311 1,106,707,707 2,630,090,246

Financial and Non-financial Liabilities2017

Due or due notlater than onemonth

Due later thanone month butnot later thanthree months

Due later thanthree months butnot later than oneyear

Due later thanone year but notlater than fiveyears

Due laterthan fiveyears

Total

Payables fromexchange transactions

(774,438) - - - - (774,438)

Non-financial liabilitiesFinance lease (25,124) (50,248) (176,194) (9,600) - (261,165)Gauteng Departmentof Human Settlements

(254,596,885) - - - (254,596,885)

Provisions (4,936,637) - - - - (4,936,637)Commitments - - - - (389,201,020)

(260,333,084) (50,248) (176,194) (9,600) - (649,770,145)

621,464,608 15,089,648 59,349,446 566,909,7111,106,707,707 1,980,320,101

Financial Assets 2016 Due or duenot later thanone month





Total

Financial instruments at fairvalue

- 8,000,000 - - - 8,000,000

Financial instruments at fairvalueLoans and receivables fromexchange transactions

3,276,566 8,817,586 55,025,725 368,373,816 638,836,546 1,074,330,239

Cash and cash equivalents 815,048,544 - - - - 815,048,544Receivables from exchangetransactions

8,105,875 - - - - 8,105,875

826,430,985 16,817,594 55,025,725 368,373,816 638,836,546 1,905,484,666

Financial and Non-financialLiabilities 2016

Due or duenot later thanone month





Total

Payables from exchangetransactions

(1,747,004) - - - - (1,747,004)

Non Financial liabilities - - - - - -Provisions (4,834,288) (4,834,288)

-Finance lease (32,562) (64,749) (270,936) (261,165) - (629,412)Deposits held on behalf ofGauteng Department of HumanSettlements

(118,927,318) - - - (118,927,318)

Commitments - - - - - (477,470,755)

(120,706,884) (64,749) (5,105,224) (819,277) (2,511,504) (603,608,777)

705,724,101 16,752,845 49,920,501 367,554,539 636,325,042 1,301,875,889

70



154




26. Financial risk management and objectives (continued)

Interest rate risk

The Trust's exposure to the risk of changes in the market interest rate relates primarily to the Trust's loans and receivablesfrom exchange transactions with floating interest rates. The objective of interest rate risk management is to consider theeffect of fluctuations in interest rates that might affect the fair value or future cash flows of a financial instrument. Themethod for measuring interest rate risk is the sensitivity analysis for fluctuations in the interest rate. Interest rate risk ismanaged internally by ensuring that allowances for increased interest rates are provided for in the project assessment. TheTrust's exposure to interest rate risk arises from increases in the rate that could give rise to unexpected changes in cashflows.

Interest rate risk table

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variablesheld constant of the Trust's surplus (through the impact of floating rate loans). The effect on surplus has been determinedby calculating an increase or decrease of 100 basis points on the current interest rates of the receivables from exchangetransaction and interest received from banks. Management considers a range of 100 basis points increase or decrease tobe reasonable for the analysis. There is no impact on the Trust's net assets.

Year Increase/decrease inbasis points

Effect onsurplus(R'000)

2017Effect of an increase in basis points on surplus 100 1,064Effect of a decrease in basis points on surplus (100) (1,064)2016Effect of an increase in basis points on surplus 125 928Effect of a decrease in basis points on surplus (125) (928)

Credit risk

Financial assets exposed to credit risk at year end were as follows:

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument. The objective of credit riskis to ensure that the counterparty will meet its obligation under a financial instrument. The Trust is exposed to credit risk inrespect of its financial instruments at fair value debt instruments, receivables from exchange transaction, cash and cashequivalents and loans and receivables from exchange transactions. Credit risk is managed internally by ensuring thatinvestments are made only after assessing and evaluating the social housing institutions management capacity and projectfeasibility. The method for measuring credit risk is the ongoing monitoring of financial assets. The Gauteng PartnershipFund's credit risk exposure arises from default of the counterparty, with a maximum exposure of R1,673,461,994 (2016:R1,323,434,922) equal to the carrying amount of loans and receivables from exchange transactions, cash and cashequivalents and receivables from exchange transaction.

Financial assets exposed to credit risk at year-end were as follows:

Credit Exposure

Class of financialinstrument

Credit risk exposure Collateral Repayment terms Credit quality offinancial assets thatare neither past due orimpairment

Ace Pallets (Pty) Ltd -Portion 26 of Erf 381Vanderbijlpark CentralWest 5 Extension 1

7,559,802 Mortgage bond held bythe GautengPartnership Fund for thetotal loan

One-year fromdisbursement date witha final repayment on31/02/2036

Performing

Aquarella Investment 360(Pty) Ltd - 85-87 Quartz


Payable by 31/05/2017 Provision for doubtfuldebts and impaired

71



155




26. Financial risk management and objectives (continued)Bixowize CC t/a KingdomProperties CC


Fifty-six-months fromdisbursement date witha final repayment on30/09/2036

Impaired

BM Molefi Properties 241(Pty) Ltd -


Payable by 31/03/2017 Judgement obtained

Bravo Enterprise andProjects (Pty) Ltd - Erf 231Kempton Park located on26 Kempton


Eighteen-months fromdisbursement date witha final repayment on31/07/2036

Performing

Bruzar ConsultingEngineers (Pty) Ltd - Erven484, 485 & 487 Ferndale

658,950 Mortgage bond held bythe GautengPartnership Fund for thetotal loan

Sixteen-months fromdisbursement date witha final repayment on31/06/2035

Performing

BUA Africa (Pty) Ltd - Erf2918 Kempton Park


Two-years fromdisbursement date witha final repayment on31/12/2035

Performing

Cape Gannet Properties175 (Pty) Ltd - Erf 42Kempton Park


Thirty-two-months fromdisbursement date witha final repayment on31/05/2033

Performing

Castle Crest Properties 80(Pty) Ltd - Erf 504 Pretoria



Performing

Castle Crest Properties 80(Pty) Ltd - Erf 233 KemptonPark



Performing

Certum Estate 130 (Pty) Ltd- Erf 564, Bertrams, JHB


Seventeen-months fromdisbursement date witha final repayment on31/10/2029

Performing

Cicima PropertyManagement Solutions(Pty) Ltd - Erf 1686 Benoni


Five-years fromdisbursement date witha final repayment on30/02/2026

Performing

Clare Water (Pty) Ltd - Erf1509 Discovery,Roodepoort


Twenty-seven-monthsfrom disbursement datewith a final repaymenton 30/06/2036

Impaired

Clidet No.1024 (Pty) Ltd -44 Wanderers



Impaired

Comu Property DevelopersCC -3103 Glen Marais



Impaired

Comocap (Pty) Ltd - 88Relly Street



Provision for doubtfuldebts and impaired

Crimson Clover Trading 11(Pty) Ltd - Ascot FashionHouse


Fourteen-months fromdisbursement date witha final repayment on31/05/2032

Performing

DNM Estate (Pty) Ltd - Erf517 & 518 City andSuburban


Thirty-months fromdisbursement date witha final repayment on31/01/2034

Impaired

72



156




26. Financial risk management and objectives (continued)Eagle Valley Property 41(Pty) Ltd Phase 1 - Portion1 of Erf 1908, Erasmus



Performing

Eagle Valley Property 41(Pty) Ltd Phase 2 - Portion1 of Erf 1908, Erasmus



Performing

EGC Properties CC -Browning Street



Performing

Echo Canyon Trading (Pty)Ltd - 463 and 465 HannyStreet


Twenty-months fromdisbursement date witha final repayment on30/08/2030

Impaired

Erf 85 Newtown CC -Browning street



Performing

Erf 273 Parktown EstateCC - Parktown PlaceDevelopment



Performing

Fundzo Trading (Pty) Ltd -Portion 15 of Erf 8489Protea North


Forty-five months fromdisbursement date witha final repayment in31/01/2034

Impaired

FV Trading Enterprises(Pty) Ltd - Erf 193 Duncanville



Performing

Golden City Property (Pty)Ltd - Erf 533 & 534



Performing

Goldburg PropertyDevelopment (Pty) Ltd - Erf72 Kempton Park



Performing

GNI Real Estate - Erf 113Pretoria North



Performing

Hoewe 15 DoregLandbouhoewes (Pty) Ltd -Portion 484 (a portion of125) of farmHartebeeshoek 303,Gauteng



Performing

Highlands Urban Living(Pty) Ltd - Highlands Lofts



Impaired

Indigo Kulani Properties(Pty) Ltd - Erf 1676 Benoni



Impaired

Ifizo (Pty) Ltd - Erf 733Pretoria North



Performing

73



157




26. Financial risk management and objectives (continued)Ikamvelihle TradingEnterprises CC - Erf 953 -956 Berea


Forty-four-months fromdisbursement date witha final repayment on30/09/2036

Impaired

Korema Property Group(Pty) Ltd - Erf 436 & 437Bellevue East, JHB



Performing

KDM Properties (Pty) Ltd -Erf 403



Performing

Kertrade CC - Erf 564 &566 Springs


Twenty-three-monthsfrom disbursement datewith a final repaymenton 30/06/2035

Impaired

Kesef Properties (Pty) Ltd -Erf 343, 344, 345, 346, 347,348, 387, 388 and 389 NewDoornfontein Johannesburg



Performing

Kimovax (Pty) Ltd - Erf 419and Erf 420 CresslawnKempton Park



Performing

Johannesburg HousingCompany (Pty) Ltd - 117Pritchard Street


One-month fromdisbursement date witha final repayment on31/02/2028

Performing

Johannesburg HousingCompany (Pty) Ltd - CrestHotel



Performing

Johannesburg HousingCompany (Pty) Ltd -Hlanganani



Performing

Lakeside Development(Pty) Ltd - Erf 1373Leachville



Performing

Landopoint (Pty) Ltd - Erf905, 906 and 907Kenilworth



Impaired

Lisinfo 282 Property (Pty)Ltd - Erf 1952 Malvern



Performing

Lukataedi (Pty) Ltd - Erf1952 Malvern


Eighteen-years fromdisbursement date witha final repayment on31/10/2034

Impaired

Madulamoho HousingAssociation - Allenby



Performing

Madulamoho HousingAssociation - FleurhofViews



Performing

Madulamoho HousingAssociation - Jabulani


Six-months fromdisbursement date witha final repayment on31/03/2028

Performing

74



158




26. Financial risk management and objectives (continued)Makabongwe PropertyHoldings (Pty) Ltd - Erf 983Johannesburg



Impaired

Mahlahla AdvancementDynamics CC - Erf 442Wolmer Pretoria



Performing

Masiszane Group (Pty) Ltd- Portion 0 of Erf 2909Jeppestown



Performing

Meilijian Construction andDevelopment CC - Erf 232Kempton Park



Impaired




Impaired




Impaired




Impaired

Meilijian Construction andDevelopment CC - Erf 3597Pomona Ext 75



Performing

Michaelson Investments(Pty) Ltd - Erf 658 Troyeville


Forty-one months fromdisbursement date witha final repayment on30/11/2033

Performing

Multidirect Investments 8(Pty) Ltd - Erf 978 PretoriaNorth



Performing

Muma PropertiesInvestments (Pty) Ltd - Erf978 Pretoria North


Twenty-nine monthsfrom disbursement datewith a final repaymenton 30/09/2033

Performing

NBLR Properties (Pty) Ltd -Ext 2551, 2552 & 2553Fleurhof Ext 20


Fourteen-months fromdisbursement date witha final repayment on31/12/2035

Impaired

Nelisa Properties (Pty) Ltd -Erf 388 Windsor


Three-years fromdisbursement date witha final repayment on31/03/2034

Impaired

Ninarich Trading 3 (Pty) Ltd- Betty Street Precinct



Performing

Nonkwelo (Pty) Ltd - Erf 10& 11 Hunter Street


Fifty-three-years fromdisbursement date witha final repayment on30/09/2036

Impaired

Norvena PropertyConsortium - O'Reilly Street


Twenty-six months fromdisbursement date witha final repayment on31/03/2030

Impaired

75



159




26. Financial risk management and objectives (continued)Norvena PropertyConsortium - NorvenaCourt



Performing

Ordicode (Pty) Ltd - Erf2242, 2243, 2248 and 2249Johannesburg



Performing

Phahamo Resources (Pty)Ltd - Erf 8993Olievenhoutbosch Ext 36Centurion



Performing

Property Kalcha (Pty) Ltd -Portion 1&2 of Erf 1871Albertville, Randburg



Performing

Proxisol Best Investment(Pty) Ltd - Erf 3834Eersterus Ext6



Performing

Rainbow Beach Trading261 (Pty) Ltd - SondelaVillage Daggafontein



Performing

Redformationz Holding(Pty) Ltd - Erf 4862 BirchAcres Ext 321



Performing

Rivavect Investments (Pty)Ltd - Central House



Performing

Sabiglo (Pty) Ltd - Erf 301Windsor West, Randburg


Thirty-one-months fromdisbursement date witha final repayment on30/09/2034

Impaired

Sam Lubbe Investment CC- Erf 1654, Germiston



Performing

Seraph Investment (Pty)Ltd - Erven 488, 489, 490and 491 New Doornfontein



Performing

Sethitho Projects CC - Erf1191, Rayton Extension 7


Nineteen-months fromdisbursement date witha final repayment on28/02/2037

Simelani BusinessSolutions (Pty) Ltd - Erf2682 Kempton Park


Forty-two-months fromdisbursement date witha final repayment on30/09/2033

Impaired

Sheran Investment (Pty)Ltd - KlippoortjieAgricultural Lofts



Performing

Shukumani TradingEnterprises (Pty) Ltd - Erf550 Bertrams


Forty-six-months fromdisbursement date witha final repayment on30/06/2033

Impaired

SOA Residential Village(Pty) Ltd - Erf 1532 Selcourt


Forty-one-months fromdisbursement date witha final repayment on30/11/2033

Impaired

76



160




26. Financial risk management and objectives (continued)Stormstrong (Pty) Ltd - Erf299, Windsor, Randburg


Five-years fromdisbursement date witha final repayment in30/04/2026

Performing

Take Shape Properties 75CC - Erf 4510


Twenty-months fromdisbursement date witha final repayment on30/12/2034

Impaired

Trust for Urban HousingFinance Intuthuko (Pty) Ltd


Ten-years with a finalrepayment date on31/08/2020

Performing

Tsebo ConsumableSupplies (Pty) Ltd - Erf 256Kempton


Fourteen-months fromdisbursement with afinal repayment date on30/09/2036

Impaired

Tumaini Properties andReal Estate CC Erf 52 & 53New Doornfontein


Forty-months fromdisbursement date witha final repayment on30/11/2033

Impaired

Valotorgue 199CC - Erf 757 6,728,471 Mortgage bond held bythe GautengPartnership Fund for thetotal loan

Thirty-two-months fromdisbursement date witha final repayment on31/10/2033

Impaired

Vuttomi Group (Pty) Ltd -Erf 347, 348, 349 and 350Eldorette Ext 34 Pretoria



Performing

Yeast City Housing (Pty)Ltd - Tau Village



Performing

Yeast City Housing (Pty)Ltd - Thembelihle Village



Performing

Yeast City Housing (Pty)Ltd - Salvokop


One-month fromdisbursement with afinal repayment date on30/06/2033

Performing

Xando Trade or Invest 614(Pty) Ltd - Erf 324 PrincessExt 49, Roodepoort



Performing

Xylo Trading 253 CC -Portion 3 of Erf 2834 Ga-Rankuwa unit 2


Nineteen-months fromdisbursement date witha final repayment on31/08/2035

Performing

Zakhele Investment CC -Erf 257 Kempton Park


Twenty-two-monthsyears fromdisbursement with afinal repayment date on30/09/2036

Impaired

Zwide & Dewa Investments(Pty) Ltd - Erf 424& 425Rhodesfield


Forty-seven-monthsfrom disbursement witha final repayment date31/12/2036

Impaired

Receivables from exchangetransactions

6,528,539

Cash and cash equivalents 870,678,350Loans and receivablesheld-for-trade

164,347,505

1,673,461,994

77



161




26. Financial risk management and objectives (continued)

Concentration risk

The Gauteng Partnership Fund's risk are concentrated in the Gauteng social housing sector (for households earning lessthan R15 000) through structured funding instruments to Social Housing Institutions and Financial Institutions with the goalto attract fair priced private sector funding. Concentration risk is quantified at an amount of R933,070,204 (2016:R623,971,618) which is the nominal balance of all loans at year-end.

27. Financial and non-financial instruments

2017 Loans andReceivables

FinancialInstruments atfair value

Other assets OtherLiabilities

Non financialinstruments atamortisedcost

Total

Financial AssetsLoans and Receivablesfrom exchangetransactions

631,907,600 - - - - 631,907,600

Loans and receivablesheld-for-trade

164,347,505 - - - - 164,347,505

Receivables fromexchange transactions

- - 6,528,539 - - 6,528,539

Cash and cashequivalents

- - 870,678,350 - - 870,678,350

Non-Financial AssetsIntangible assets - - - - 46,305 46,305Property, plant andequipment

- - - - 2,443,879 2,443,879

Financial LiabilitiesPayables fromexchange transactions

- - - (255,371,323) - (255,371,323)

Non-FinancialLiabilitiesFinance lease - - - - (251,817) (251,817)Deferred Income - - - - (135,331,887) (135,331,887)Operating lease - - - - (182,341) (182,341)Provisions - - - - (4,936,637) (4,936,637)

- - - - - -

796,255,105 - 877,206,889 (247,577,701) (138,212,498) 1,279,878,173

2016 Loans andReceivables

Financialinstruments atfair value

Other assets OtherLiabilities

Non financialinstruments atamortisedcost

Total

Financial AssetsCurrent portion financialinstruments at fair value

- 7,793,622 - - - 7,793,622

Loans and Receivablesfrom exchangetransactions

435,921,120 - - - - 435,921,120

Loans and receivablesheld-for-trade

55,743,567 55,743,567

Receivables fromexchange transactions

- - 8,105,875 - - 8,105,875

Cash and cashequivalents

- - 815,048,544 - - 815,048,544

Non-Financial AssetsIntangible assets - - - - 196,729 196,729Property, plant andEquipment

- - - - 2,396,567 2,396,567

Financial Liabilities

78



162




27. Financial and non-financial instruments (continued)Payables fromexchange transactions

- - - (120,674,322) - (120,674,322)

Non-Financial Liabilities - - - - - -Operating lease - - - - - -Finance lease - - - - (588,930) (588,930)Deferred Income - - - - (288,239,546) (288,239,546)Provisions - - - - (4,834,288) (4,834,288)

491,664,687 7,793,622 823,154,419 (120,674,322) (291,069,468) 910,868,938

The above table illustrates the categorisation of financial instruments.

Set out below is a comparison by class of carrying amounts and fair values of all the Gauteng Partnership Fund's financialinstruments:

Financial assets Carryingamount 2017

Carryingamount 2016

Fair value2017

Fair value2016

Financial instruments at fair value - 7,793,622 - 7,793,622Loans and receivables from exchange transactions 631,907,600 435,921,120 631,907,600 435,921,120Receivables from exchange transactions 6,531,077 8,105,875 6,531,077 8,105,875Cash and cash equivalents 870,678,350 815,048,544 870,678,350 815,048,544Loans and receivables held-for-trade 164,347,505 55,743,567 164,347,505 55,743,567

1,673,464,532 1,322,612,728 1,673,464,532 1,322,612,728

Financial Liabilities Carryingamount 2017

Carryingamount 2016

Fair value 2017

Fair value2016

Non financial liabilities - Finance lease obligation 251,817 588,930 251,817 588,930Financial liabilities - Payables from exchangetransactions

255,599,233 120,674,322 255,599,233 120,674,322

255,851,050 121,263,252 255,851,050 121,263,252

Fair Value of FinancialInstruments

Valuationtechnique -marketobservableinputs

Valuationtechniquecombinationfor marketand non-marketobservableinputs

Total 2017

Valuationtechnique -marketobservableinputs

Valuationtechniquecombinationfor marketand non-marketobservableinputs

Total 2016

Financial AssetsCurrent portion -financialinstruments at fair value

- - - - 7,793,622 7,793,622

Loans and receivable held-for-trade

- 164,347,505 164,347,505 - 55,743,567 55,743,567

Loans and receivables fromexchange transactions

- 631,907,600 631,907,600 - 435,921,120 435,921,120

- 796,255,105 796,255,105 - 499,458,309 499,458,309

Non Financial Liabilities Valuationtechnique-

marketobservable

inputs

Valuationtechnique

combinationfor marketand non-market

observableinputs

Total 2017 Valuationtechnique-

marketobservable

inputs

Valuationtechnique

combinationfor marketand non-market

observableinputs

Total 2016

79



163




27. Financial and non-financial instruments (continued)Finance lease 327,954 - 327,954 588,930 - 588,930

327,954 - 327,954 588,930 - 588,930

The fair value of shares which are not listed are estimated using the discounted cash flow valuation model basedassumptions that are supported by a combination of market and non-market observable inputs. The valuation is based onprojected sustainable cash flows taking into account views of future performance as at 31 March 2017. The discountedrates used to present value these cash flows taking both systematic and unsystematic risks into account. Systematic risk ismarket risk or the risk that cannot be diversified away. Unsystematic risk is asset specific risk.

The fair value of loans and receivables from exchange transaction has been determined by discounting future cash flowsover the period of the loan at the prime rate at date of inception thereof.

The fair value of the derivative was has been determined by using the Black Scholes model and discounting future cashflowof the difference between the fair value of the option price and the equity fair value.

Finance leases are capitalised at the lower of present value of minimum lease payments or fair value. The discounted rateused in calculating the present value of minimum lease payments is 9.75% for printers (which is the prime rate at date ofinception) and 6% for the telephone system (which is the escalation of the lease).

Fair Value Hierarchy

The fair value hierarchy shall have the following levels:

a) Quoted (unadjusted) prices in active markets for identical assets or liabilities (Level 1);

b) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. asprices) or indirectly (i.e. derived from prices) (Level 2); and

c) Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

As at 31 March 2017, the GPF held the following financial instruments measured at fair value:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Other techniques for which all inputs have a significant effect on the recorded fair value are observable, eitherdirectly or indirectly.

Level 3: Techniques which use inputs which have a significant effect on the recorded fair value that are not based onobservable market data.

28. Net cash outflow from operating activities

Surplus 369,009,233 182,902,023Adjustments for:Depreciation and amortisation 1,285,591 1,304,716Gain on sale of assets and liabilities (143,383) (48,153)Impairment loss/(reversal) 4,142,626 (7,145,871)Fair value adjustments 42,758,500 30,090,162Finance costs - Finance leases 66,283 51,293Impairment of property, plant and equipment 37,387 137Increase/(decrease) in operating movements in operating lease assets and accruals 182,341 (241,925)Increase/(decrease) in provisions 102,349 (2,015,942)Bad debt recovered (13,519,938) -Contract recovery fee transferred (3,606,712) (5,912,244)Restructure fee transferred (744,000) -Changes in working capital:Receivables from exchange transactions 1,577,336 3,179,492Provision for doubtful debts (5,615,636) (19,689,779)Payables from exchange transactions 134,697,001 (35,406,980)Deferred income (343,976,297) (176,614,056)Donations 191,068,638 200,000,000Loans and receivables from exchange transactions (195,986,480) (96,448,242)Loan and receivables held-for-trade (108,603,938) (55,743,567)Difference in interest calculated and interest capitalised (15,612,689) (5,120,747)

80



164




28. Net cash outflow from operating activities (continued)

57,118,212 13,140,317

29. Contingencies

There is no potential third party claims against the entity.

30. Budget Comparison

Comparison between budget and actual amounts

The budget was approved by the Trustees and submitted to the Executive Authority in terms of section 53(1) of the PFMA.

The GPF operated within its approved budget. The year to date versus the actual expenditure to date was under the budget by37%.

This was mainly due to:

a) timing of the capital raising payments as milestones not reached in the current year.

Refer to Statement of Comparison of Budget and Actual amounts.

31. Provision for doubtful debts

Loans and receivables from exchange transactionsAquarella Investment 360 (Pty) Ltd - 85-87 Quartz Street 666,262 2,068,698BM Molefi Properties 241 (Pty) Ltd - Kgorong Estate - 1,975,563DNM Estate (Pty) Ltd - Erf 517 & 518 City and Suburban 3,115,825 -Comocap (Pty) Ltd - 88 Relly Street 112,808 1,072,283Highlands Urban Living (Pty) Ltd - Highlands Lofts - 3,847,635Landopoint (Pty) Ltd - Erf 905, 906 and 907 Kenilworth 1,073,158 -Sakhazonke Investment (Pty) Ltd - Erf 252, Kempton Park 647,583 -Tenitor Properties (Pty) Ltd - The Ridge Hotel - 10,725,600

5,615,636 19,689,779

The loan to Aquarella Investments 360 (Pty) Ltd - 85-87 Quartz Street had been provided as a doubtful debt due to breachof contract. The GPF auctioned the property to mitigate the loss. The GPF auctioned the property and is expected toreceive a settlement of R2,600,000. (Refer to note 3 & 33).

The loan to BM Molefi Properties 241 (Pty) Ltd - Kgorong Estate was provided as a doubtful debt due to breach of contract.The GPF has obtained a judgement against BM Molefi Properties 241 (Pty) Ltd - Kgorong Estate to pay back the loanamount together with interest. (Refer to note 3).

The loan to Comocap (Pty) Ltd - 88 Relly Street was provided as a doubtful debt due to breach of contract and thecompany being in business rescue. Management assesses the probability of recovery as 50% therefore half of the loan hasbeen provided for. The GPF has instituted legal proceedings against the borrower. (Refer to note 3).

The loan to DNM Estate (Pty) Ltd - Erf 517 & 518 City and Suburban was provided for as a doubtful debt due to breach ofcontract. Management asses the probability of recovery as 40% therefore the priors years provision for doubtful debt hasbeen reversed. (Refer to note 3).

The loan to Highlands Urban Living (Pty) Ltd - Highlands Loft was provided for as a doubtful debt due to breach of contract.Management asses the probability of recovery as 50% therefore the priors years provision for doubtful debt has beenreversed. (Refer to note 3).

81



165




31. Provision for doubtful debts (continued)

The loan to Landopoint (Pty) Ltd - Erf 905, 906 and 907 Kenilworth was provided for as a doubtful debt due to breach ofcontract. Management asses the probability of recovery as 50% therefore half of the loan has been provided for. The GPFhas instituted legal proceedings against the borrower. (Refer to note 3).

The loan to Sakhazonke Investment (Pty) Ltd - Erf 252, Kempton Park was provided for as a doubtful debt due to breach ofcontract. Management asses the probability of loss as 100% therefore the whole loan has been provided for. The GPF hasinstituted legal proceedings against the borrower. (Refer to note 3).

In the prior year the loan to Tenitor Properties (Pty) Ltd - The Ridge Hotel has been provided as a doubtful debt due tobreach of contract. The loan to Tenitor Properties (Pty) Ltd - The Ridge Hotel was sold on auction and the balance owedwas written off. (Refer to note 3 & 33).

32. Gain on disposal of assets

Gain on disposal of assetsProperty, plant and equipment 143,383 48,153

Gain on disposal of assets relates to assets disposed.

33. Bad debts written off

Bad debts written offAquarella Investment 360 (Pty) Ltd - 85-87 Quartz Street 2,734,960 -Take Off Real Estate (Pty) Ltd - Jeppestown Project - 679,486Tenitor Properties (Pty) Ltd - The Ridge Hotel 8,816,103 -

11,551,063 679,486

A portion of the loan to Aquarella Investments 360 (Pty) Ltd - 85-87 Quartz Street has had been written off as the GPF hasauctioned off the property and is expected to receive a settlement of R2,600,000. (Refer to note 16).

The loan to Take Off Real Estate (Pty) Ltd - Jeppestown Project has been written off as a liquidation order was obtained byanother creditor. (Refer to note 3).

A portion of the loan to Tenitor Properties (Pty) Ltd - The Ridge Hotel has had been written off as the GPF has auctioned offthe property and the GPF received a settlement of R3,579,856.

34. Fruitless and wasteful expenditure

Fruitless and wasteful expenditure 35,810 -

The fruitless and wasteful expenditure relates to tax that was not paid over to SARS timeously. As a result interest wascharged. (Refer to note 21).

35. Prior period error

In the prior year the Trust capitalised interest to loans held-for-trade. This interest has now been transferred to the GPFjunior loans.

The effect of the change is as follows:

Statement of Financial PositionLoans and receivables from exchange transactions as previously stated 419,557,066Add: Loans and receivables held-for-trade reversed 9,718,230Less: Fair value adjustments (823,667)Add: Current portion loan and receivables from exchange transactions reversed 82,723Add: Interest earned 1,473

Balance as restated (Refer note 5) 428,535,825

Statement of Financial PositionLoans and receivables held-for-trade as previously stated 65,461,797

82



166




35. Prior period error (continued)Less: Loans and receivables from exchange transactions (9,718,230)

55,743,567

Statement of Financial PositionCurrent portion loan and receivables from exchange transactions as previouslystated

7,468,018

Less: Loans and receivables from exchange transactions (82,723)

7,385,295

Statement of Financial PerformanceFair value adjustments as previously stated 29,266,495Add: Fair value adjustment - Loans and receivables from exchange transactions 823,667

30,090,162

Statement of Financial PerformanceRevenue as previously stated 261,222,767Add: Interest earned 1,473

Balance as restated (Refer note 8) 261,224,240

Statement of Changes in Net AssetsSurplus for year as previously stated - 183,724,217Add: Fair value adjustment - Loans and receivables from exchange transactions - (823,667)Add: Interest earned - 1,473

Balance restated (Refer statement of changes in net assets) - 182,902,023

36. Subsequent events

The Trust entered into a new lease with Acucap Management Services (Pty) Ltd effective 1 May 2017 for the ground floor of82 Grayston Drive Sandton.

N Maponya was appointed on 1 April 2017, G Makhubo was appointed 1 July 2017, D Maphatiane resigned 30 June 2017and M Lehobye resigned effective 30 September 2017.

On the 29 June 2017 the Trust recovered R1,265,166 for the loan to Tenitor Properties (Pty) Ltd.

Subsequent to year-end Trust had decided to foreclose on the loan to DNM Estate (Pty) Ltd. The DNM Estate (Pty) Ltdloan attributable to Asapri (Pty) Ltd of R10,932,764 will be converted to a GPF loan. (Refer to note 5 & Trustees report note3).

The Trustees are not aware of any other matter or circumstance arising since year-end.

83



167



Detailed Income statementFigures in Rand Note(s) 2017 2016

Revenue

Deferred income 343,976,297 176,614,056

Interest received from banks 15 48,646,070 42,607,547

Other income 19,476,119 19,982,562

Interest received from investments 76,882,017 42,002,637

Total revenue 488,980,503 281,206,802

Expenditure

Employee related expenses 22 (36,651,113) (33,974,791)

Depreciation and amortisation (1,285,591) (1,304,716)

Impairment loss on fixed assets 20 (37,387) (137)

Finance costs 21 (66,283) (51,293)

Lease rentals on operating lease (3,274,429) (3,568,081)

Provision for doubtful debts 31 (5,615,636) (19,689,779)

Repairs and maintenance (2,575,531) (1,201,493)

General Expenses 18 (23,707,557) (15,618,351)

Total expenditure (73,213,527) (75,408,641)


Gain/(loss) on disposal of assets 143,383 48,153


Impairment reversal/(loss) of loan and receivables from exchange transactions 20 (4,142,626) 7,145,871

(46,757,743) (22,896,138)


84The supplementary information presented does not form part of the annual financial statements and is unaudited


Detailed Income statementFigures in Rand Note(s) 2017 2016

Revenue

Deferred income 343,976,297 176,614,056

Interest received from banks 15 48,646,070 42,607,547

Other income 19,476,119 19,982,562

Interest received from investments 76,882,017 42,002,637

Total revenue 488,980,503 281,206,802

Expenditure

Employee related expenses 22 (36,651,113) (33,974,791)

Depreciation and amortisation (1,285,591) (1,304,716)

Impairment loss on fixed assets 20 (37,387) (137)

Finance costs 21 (66,283) (51,293)

Lease rentals on operating lease (3,274,429) (3,568,081)

Provision for doubtful debts 31 (5,615,636) (19,689,779)

Repairs and maintenance (2,575,531) (1,201,493)

General Expenses 18 (23,707,557) (15,618,351)

Total expenditure (73,213,527) (75,408,641)


Gain/(loss) on disposal of assets 143,383 48,153


Impairment reversal/(loss) of loan and receivables from exchange transactions 20 (4,142,626) 7,145,871

(46,757,743) (22,896,138)


84The supplementary information presented does not form part of the annual financial statements and is unaudited

168


Notes

169


Notes

170


Notes

171


Notes

172


Notes

173


Notes

174


Notes

175


Notes

176


Notes

GPFCatalyst for delivering sustainable human settlements

Tel: +27 11 685 6600Fax: +27 11 685 6696

[email protected] Grayston Drive

Sandton, 2196

PR159/2017ISBN: 978-0-621-45485-7

ANNUAL REPORT 2016/17 - Provincial Government...(PIC) and Futuregrowth Asset Management...

Documents

Transcript of ANNUAL REPORT 2016/17 - Provincial Government...(PIC) and Futuregrowth Asset Management...