COMMUNITY SCHEMES OMBUD SERVICE

RESOLUTION OF CHALLENGESPORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS MEETING

5 March 2014Director-General – T Zulu

PRESENTATION OUTLINE

1. Background2. Resolution of challenges2.1. Approval of the Strategic and Annual Performance

Plan2.2. Appointment of the Chief Ombud and the Chief Financial Officer2.3. Funding of the entity 2.4. Office space

The Community Schemes Ombud Service Act (Act no 9 of 2011) [CSOS Act], was proclaimed on 11 June 2011 and provides for the establishment of the Community Schemes Ombud Service (CSOS) as a public entity. The entity has been listed as a schedule 3A public entity in terms of the Public Finance Management Act (Act No. 1 of 1999, as amended) (PFMA).

The Sectional Titles Act (no. 95 of 1986) has been amended by the Sectional Titles Schemes Management Act (no 8 of 2011), as the Sectional Titles Schemes Management Act (no 8 of 2011) will now deal with the establishment of bodies corporate to control common property and the application of rules.

1. BACKGROUND

2. Resolution of challenges

The presentation to the Portfolio Committee on 14 November 2013, highlighted challenges with regard to the following:

• The approval of the Strategic and the Annual Performance Plan for

2013/14;

• The appointment of the Chief Ombud and the Chief Financial

Officer;

• The funding of the entity; and

• Office space.

2. RESOLUTION OF CHALLENGES

2.1. Approval of the Strategic and the Annual Performance Plan

• The Minister has approved the Strategic and Annual Performance

Plan of the CSOS on 31 January 2014.

• The Board of the CSOS is therefore preparing for the

operationalisation of the entity.

2. RESOLUTION OF CHALLENGES…

2.2. The appointment of the Chief Ombud and the Chief

Financial Officer

• The Department advertised the position of the Chief Ombud and

the Chief Financial Officer on behalf of the CSOS.

• The closing date for applications was 31 January 2014.

• The Board has shortlisted the candidates for the positions and is

currently preparing for interviews.

2. RESOLUTION OF CHALLENGES…

2.3. Funding of the entity

• The Department secured R20 million in the 2013/14 financial year

for the operationalisation of the CSOS through a roll-over request.

• The Department stands ready to transfer funds to the CSOS as

soon as the Chief Financial Officer is appointed.

• The Department secured grant funding appropriations for the CSOS

over the medium term as follows: R40 million in 2014/15, R53 million

in 2015/16 and R28 million in 2016/17.

2. RESOLUTION OF CHALLENGES…

2.4. Office space

• The Strategic and Annual Performance Plan was not yet finally approved at the time

when the CSOS requested for the procurement of office space through the

Department.

• Temporary office has been identified at the offices of the Estate Agency Affairs Board (EAAB).

• The matter is currently being discussed with the Chairperson of the Board of the EAAB and the

management of the entity.

• The CSOS will have to define and procure the permanent office space requirements of the entity

through the applicable supply chain management processes during the 2014/15 financial year.

2. RESOLUTION OF CHALLENGES…

THANK YOU

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