housing - National Housing Finance Corporation

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NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2006 CONTINUED 30. COMPARISON BETWEEN BUDGET AND AUDITED RESULTS AT 31 MARCH 2006 Comparison between budget and audited results at 31 March 2006 Actual R’000 Budget R’000 Income Lending activities 60 118 86 252 Investment activities 95 812 81 553 Other 13 414 10 150 Total income 169 344 177 955 Impairments 1 092 (3 670) Operating expenses (62 143) (73 269) Profit before tax 108 293 101 016 Tax (31 392) (29 294) Profit after tax 76 901 71 722 Explanation of variances: Approvals to lenders for the year amounted to R225,2 million of which only R211,1 million was disbursed. The reasons for the lack of disbursements were substantially the reluctance of clients to commit themselves in view of the impending National Credit Act and the promulgation of the Social Housing Policy. Lending income As a result of lower disbursements the lending income is lower but this had a positive effect on investment income. Investment income The investment income which is higher than budgeted for, due to lower disbursements. Other income Other income includes management fees derived from funds under management which were not charged in the previous year. 66 NHFC ANNUAL REPORT 2006
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2006 CONTINUED 30. COMPARISON BETWEEN BUDGET AND AUDITED RESULTS AT 31 MARCH 2006 (continued) Expenses 1. Expenses are R11,26 million below budget. Major favourable variances were in: Consultants R5,0 million Capacitation costs R4,3 million IMPACT – Units The impact of the lending from NHFC on housing delivery was: Actual Budget Houses 6 636 6 575 Loans for incremental improvement of homes 8 879 10 000 15 515 16 575 31. REPORT ON ACHIEVEMENT OF KEY PERFORMANCE INDICATORS (KPIS) FOR THE YEAR-END 2006 Key performance indicators Actual Target 1. Number of loans approved 14 20 2. Value of loans approved (R’000) 225 202 420 000 3. Number of loans in place 52 60 4. Number of houses financed by loans granted 15 515 16 575 5. Income from loans and related activities 60 118 86 252 6. Average interest on the loans granted 8,43 10,1 7. Losses on loans (non-performance) 1 092 (3 670) 8. Number of financial intermediaries operating 52 60 9. Number of financial intermediaries impaired in 2006 2 3 10. Income from other activities/investments (R’000) 95 812 81 553 11. Expenditure/Operating costs (R’000) 62 143 73 269 12. Profit/Loss (operating surplus/deficit) 76 901 71 722 13. Total capital (R’000) 1 922 288 1 943 716 14. Capital used in operations (R’000) 755 702 1 067 604 15. Capital used in other investments (R’000) 1 166 586 876 112 NHFC ANNUAL REPORT 2006 67
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A N N U A L R E P O R T 2 0 0 6 u O
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A TRIBUTE TO OUR CHAIRMAN IN MEMORY
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KEY FINANCIAL FEATURES 2006 % 2005
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HIGHLIGHTS NHFC - TEN YEARS ON NHFC
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BOARD OF DIRECTORS Mr Tim Middleton
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“EVERY TIME YOU ARE TEMPTED TO RE
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CHIEF EXECUTIVE’S REPORT CONTINUE
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CHIEF EXECUTIVE’S REPORT CONTINUE
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CORPORATE GOVERNANCE INTRODUCTION C
Page 20 and 21: CORPORATE GOVERNANCE CONTINUED Boar
Page 22 and 23: CORPORATE GOVERNANCE CONTINUED MCC
Page 24 and 25: CORPORATE GOVERNANCE CONTINUED inte
Page 26 and 27: ANNUAL FINANCIAL STATEMENTS FOR THE
Page 28 and 29: REPORT OF THE INDEPENDENT AUDITORS
Page 30 and 31: REPORT OF THE DIRECTORS The Directo
Page 32 and 33: BALANCE SHEETS AS AT 31 MARCH 2006
Page 34 and 35: STATEMENT OF CHANGES IN EQUITY FOR
Page 36 and 37: GROUP ACCOUNTING POLICIES 1. CORPOR
Page 38 and 39: GROUP ACCOUNTING POLICIES CONTINUED
Page 44 and 45: NOTES TO THE ANNUAL FINANCIAL STATE
Page 72: ADMINISTRATION REGISTRATION NUMBER
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