Madulammoho Housing Association Story

10
Madulammoho Housing
Association Story
Madulammoho Housing Association was established
in 2004 to provide affordable housing solutions for
Johannesburg’s inner city community. It is a Section
21 (Not for Profit) company. Using an economic cost
recovery model with affordability as the starting point,
Madulammoho pioneered a model that meets the housing
needs of the very poor.
2004
MHA was established to provide affordable housing solutions
for Johannesburg’s inner city community.
2008
• MHA established B.G. Alexander, one of our biggest
projects to date, a joint venture with JOSHCO. It includes 376
communal units, 6 bachelor units, 15 one bed room units,
12 two bed units and 81 emergency shelter beds.
2005
MHA opened its first project, New Europa House,
which has 58 communal units, 14 self-contained units,
and an overnight shelter.
• MHA was the recipient of the Platinum Impumelelo Award
for Innovative Work in the field of poverty reduction and
community development, the Johannesburg Development
Agency’s Halala Joburg Award for Living Joburg – Property
Management and Affordable Housing, as well as The Govan
Mbeki Award for Best Social Housing Institution of the year.
• This was an extremely exciting year for MHA as we also
had former President, Thabo Mbeki visit our projects.
Our housing model allows for people to access different
types of affordable rental units according to the tenants
income level.
Madulammoho was born out of MOULD EMPOWER
SERVE (MES), a non-profit, faith based organization that
provides a wide range of social services to the city’s most
vulnerable populations. Together, they apply a holistic
approach to serve and empower the community.
Madulammoho currently manages seven housing projects
in Johannesburg’s inner city providing homes for over
2,400 low income earners.
2006
MHA inaugurated its second project, Cornelius House,
which has 67 transitional units and 14 communal units.
In the same year MHA started another project, New Regent
House, offering 46 bachelor units and 54 communal units.
2007
MHA opened its fourth project, El Kero House, with 141
communal units and 29 self-contained units.
2011
• MHA was evaluated by the Provincial Department of
Housing on corporate governance and was considered
one of the top performing SHI’s in Gauteng.
• We upgraded both financial and a property
management system to support the company as it
continues to expand.
2012
• MHA launched its first new build project outside of
Hillbrow, at Fleurhof Views with 286 units with a mix of
96 bachelor units and 190 two bedroom units.
• MHA received full accreditation by the SHRA and
the CEO also received the CEO’s special award in
recognition of its achievements in social development
and housing.
2009
• MHA opened its fifth housing project, Resdoc House
which includes 60 communal units and 4 self-contained
bachelor units.
• We also launched Allenby House providing 119
communal units and with catering available for physically
challenged tenants.
2010
B.G. Alexander became home to Cruyff Court, donated
by the Netherlands National Football Team. The five a
side soccer pitch was christened the Orange Cruyff Court
– Hillbrow and was officially opened by the Dutch team just
before the kickoff to the 2010 FIFA World Cup.
012
MES & MHA Partnership Impacy
MES is a Christian social development organisation that facilitates
professional services to vulnerable or at risk individuals, families and
communities, empowering them through a holistic service model to
become independent and sustainable. In 2005 MHA developed from the
housing strategy of MES.
Together, the two companies create a meaningful synergy: Madulammoho
provides low cost housing and makes facilities available for community
work. MES provides supporting services and works together with MHA
to strengthen their communities. Services to tenants include access
to awareness campaigns and workshops, pastoral support to tenants
and youth clubs in the MHA buildings. Social community events bring
tenants together and social support services are delivered to tenants in
desperate need.
During 2011, we worked hard at increasing the communication processes
between the two organisations ensuring that both the tenants and MES/
MHA personnel are aware of the different services that are provided in
partnership.
During the past year, the Spiritual enrichment team of MES has increased
their efforts to build relationships with the community, especially the
tenants of Madulammoho Housing Association. It is through relationships
that the team can ensure the community has access to supportive and
spiritual care and is empowered to lead constructive and meaningful
lives. The number of room visits to the tenants has increased with 35
% to 1708 for the year. Contributing to their visibility in the community
was the organising of social gatherings that included two successful
Gospel Concerts and a talent show for the children and youth of the
MHA buildings.
Currently MES makes use of facilities that are part of MHA developments
and the following are highlights of 2011.
The Ekhaya overnight shelter is part of the Europa House and provides
short term overnight shelter accommodation to 120 people per night.
The BG Alexander Estate provides a multitude of facilities from where
intervention programmes are run to serve the needs of the community.
The drop-in centre daily provides a meal to 80 homeless
and destitute people. This creates a space where a sense of
belonging is nurtured to the most marginalised of the city.
The Assessment centre’s services have increased in their
developmental approach nurturing a sense of ownership
amongst individuals and the wider community. Campaigns and
workshops to the wider community addressed gender violence,
drug and alcohol abuse, and human trafficking and reached a
total of 330 people. The centralised assessment centre assisted
466 clients through their helpdesk and intake facility.
013
My Four Walls of Safety
My four walls of safety
Did not exist while I lived on the street
My four walls of safety were just a dream
The Dinaledi crèche provided quality education and care
(physically, mentally and emotionally) to 115 children in 2011
of which 29 successfully graduated to primary school.
While I cuddled my feet
A total number of 389 clients were trained in soft skills
programmes and 303 in vocational skills at the Entuthukweni
training centre. 105 clients have been directly assisted with
job placement. Further to nurturing a sense of responsibility
and making a sustainable exit possible, a resource centre has
been established providing clients with access to job hunting
opportunities.
Shelter, warmth and comfort were miles away
In Port Elizabeth, MES was awarded a capital subsidy grant that
allowed us to settle our bridging funding for the purchase of an
overnight shelter facility. The grant also includes the renovation of
the facility in 2012 to provide overnight shelter accommodation
to 120 people along with training and job creation facilities. The
expertise of MHA has been greatly appreciated in this process
as new energy saving technology and design aspects have been
considered in drawing up the plans for the project.
My four of walls of safety became a necessity
When children were born right there on the street
Strife, hunger and homelessness
were the order of the day
My four walls of safety soon became a priority
As the system of democracy
gave each one the opportunity
To become a part of the equal dynasty
My four walls of safety became the solution
To the moral degeneration and the social degradation
That came along with my homeless situation
Charity begins at home
It can never happen when you are alone
In Cape Town, MHA is in the process of tendering for a 500
unit development in Scottsdene and we are keenly looking
forward to the possibility of expanding on our current services
in Cape Town to also include the tenants and community in this
development.
Here in my four walls of safety
Calgro M3 has awarded MES the management of a crèche facility
in the new Fleurhof development where MHA has developed 286
units in 2011. Together we are looking forward to the unfolding
of our partnership in the Fleurhof community.
The battle against homelessness still continues
I can be counted as a member of the sheltered society
Today my four walls of safety are built in the city
Today I have a home away from home
Yet, NTWA KE YA MADULAMOHO -Thato
MES values our partnership with MHA and are committed to
“Changing the heart of our city!” in 2012.
• madulammoho • housing • association
014
News
Update
Internship
In May 2012, Gregory Yonick began his six month internship with the
Madulammoho team as a communications officer. During his six month
placement, Gregory will be developing communications to strengthen
inter departmental relations, increase tenants engagement and
awareness of available services, as well as improving the ties between
Madulammoho and MES.
Through these initiatives Madulammoho Housing Association will continue
to build healthy and safe communities.
Madulammoho Goes Green
As energy costs continue to rise in South Africa, Madulammoho
Housing Association is going green to further reduce the
tenants’expenses. Fleurhof Views is Madulammoho Housing
Association’s newest housing project outside the inner city,
providing affordable housing for approximately 964 occupants
within 286 units. Unlike other Madulammoho housing projects,
Fleurhof Views is the first location to take environmentally
conscious steps in producing the tenants’ hot water, using
nine energy efficient and environmentally friendly heat
pumpscompared to other Madulammoho projects which use
element heated conventional geysers.
Using these nine hot water pumps provide a number of benefits
for both the tenants and the environment. The initial estimated
energy savings obtained by using the energy efficient heat pumps
is approximately 113 511 kWh per month or approximately
1362 132 kWh per year. When comparing these heat pumps to
the conventional geysers there is a savings of up to 60% on hot
water. Moreover, tenants will continue to save more with each
passing year, as shown in the graph below. This is extremely
advantageous for tenants as it allows them to spend less of
their income on housing costs.
15
Asset Management Report
Neil Erasmus
New Developments
Esselin Towers
A detailed geotechnical study has confirmed that this building
site is suitable for the development of an 11 storey building
that will consist of 42 two bed and 54 bachelor apartments.
Madulammoho applied for the rezoning of the property and we
have now received the approvals for the relaxation in parking
requirements, a changed Floor Area Ratio (FAR) and the
approval letter for the exemption to the new energy efficiency
regulations.
The feasibility of this project will largely depend on the cost of
construction as the site is not very accessible and situated in an
already developed area with neighbors on three sides which will
have to be considered at all times during construction.
Fleurhof Views
286 newly built residential units have received practical
completion at the end of February 2012. Fleurhof Views is now
80% occupied and filling up fast. Madulammoho has installed a
heat pump hot water supply system in an effort to play our role
in the conservation of energy.
Furthermore, these heat pumps will enable Madulammoho
Housing Association to reduce its carbon footprint by 1022 tons.
Therefore, not only are the tenants of Madulammoho Housing
Association prospering from the cost reductions provided by
new hot water pumps, but so is the environment since Fleurhof
Views is making less of a carbon footprint. In striving to follow
the best possible practices Madulammoho Housing Association
plans to implement this green and cost effective hot water
producing technology within all our future projects.
Madulammoho has installed numerous playground equipment
pieces positioned in front of the buildings where adult
supervision is always present. We have upgraded the kitchen
units by changing the formica tops to granite counter tops.
Madulammoho believes that the longevity of the residential
units will improve due to the higher specifications that were
used.
• madulammoho • housing • association
Jabulani Views
The construction of 300 self-contained units in Jabulani has
commenced in December 2011. The project is well on the way
and practical completion is expected in February 2013. Jabulani
Views is conveniently located next to the main BRT route running
through Soweto, Jabulani Mall, public sports grounds and an
amphitheater.
Madulammoho is planning on applying all the lessons learnt
from the project at Fleurhof Views which includes the change in
design specifications and heat pump installations.
Scottsdene Estate
Madulammoho will be applying for a Restructuring Capital Grand
from the Social Housing Regulatory Authority (SHRA) for the
development of 500 residential units in Scottsdene in the Cape
Province. Madulammoho has designed a very interesting and
unique Site Development Plan (SDP) that will provide for lots
of green spaces, playgrounds and even a skateboard park.
Madulammoho expects to receive project funding approval by
the end of May 2012.
17
Independent Auditor’s Report
To the members of Madulamoho Housing
Association (NPC)
We have audited the annual financial statements of Madulamoho
Housing Association (NPC), which comprise the statement of
financial position as at 29 February 2012, and the statement
of comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended, and a summary
of significant accounting policies and other explanatory notes,
and the directors’ report, as set out on pages 6 to 21.
Directors’ Responsibility for the Annual
Financial Statements
Madulammoho’s in-house maintenance team is offering a
daily maintenance service to all its projects in the City. The
maintenance program is mainly taking care of the everyday
reactive maintenance issues but also shares in the responsibility
of planned maintenance objectives.
The company’s directors are responsible for the preparation
and fair presentation of these annual financial statements in
accordance with the International Financial Reporting Standard
for Small and Medium-sized Entities, and in the manner required
by the Companies Act 71 of 2008. This responsibility includes:
designing, implementing and maintaining internal control relevant
to the preparation and fair presentation of annual financial
statements that are free from material misstatement, whether due
to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in
the circumstances.
Planned Maintenance
Auditor’s Responsibility
A planned maintenance program has been developed by using
the Building Condition Audits (BCA) that was designed for all
of Madulammoho’s buildings. This program is divided into four
quarters and monitors the maintenance budget as well as the
progress of scheduled work.
Our responsibility is to express an opinion on these annual
financial statements based on our audit. We conducted our audit
in accordance with International Standards on Auditing. Those
standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance
whether the annual financial statements
are free from material misstatement.
Reactive Maintenance / Existing Projects
An audit involves performing procedures to obtain audited evidence
about the amounts and disclosures in the annual financial statements.
The procedures selected depend on the auditor’s’ judgement,
including the assessment of the risks of material misstatement
of the annual financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal
control relevant to the entity’s preparation and fair presentation of
the annual financial statements 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 entity’s internal
control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall
presentation of the annual financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the annual financial statements present fairly,
in all material respects, the financial position of Madulamoho
Housing Association (NPC) as at 29 February 2012, and its
financial performance and its cash flows for the year then ended in
accordance with the International Financial Reporting Standard for
Small and Medium-sized Entities, and in the manner required by the
Companies Act 71 of 2008.
Other matter
Without qualifying our opinion, we draw attention to the fact that
the supplementary information set out on pages 22 to 23 does
not form part of the annual financial statements and is presented
as additional information. We have not audited this information and
accordingly do not express an opinion thereon.
DVM Audit Tax Accounting Inc
Chartered Accountants (S.A.)
Registered Auditors: Prof IJ de Villiers
21 June 2012
• madulammoho • housing • association
STATEMENT OF
FINANCIAL POSITION
Figures in Rands
ASSETS
Non-Current Assets
Investment property Property, plant and equipment Investment in joint ventures Operating lease asset Current Assets
Inventories Trade and other receivables Retention deposits Cash and cash equivalents Total Assets 2012
98,327,302 1,763,974 15,920,367 6,449,788 122,461,431
-
354,769 9,759,102 16,543,329 26,657,200 149,118,631 DETAILED INCOME STATEMENT
2011
32,015,001
1,302,272
13,620,559
6,897,596
53,835,428
8,761
4,665,278
15,280,826
19,954,865
73,790,293
EQUITY AND LIABILITIES
EQUITY
Accumulated reserve LIABILITIES
Non-Current Liabilities
Other financial liabilities Deferred income Conditional government grant Trust funds Current Liabilities
Trade and other payables Provisions Conditional government grant Total Liabilities Total Equity & Liabilities 76,194,213 31,448,436
38,967,065 18,950,702 4,150,440 320,000 62,388,207 15,877,701
20,080,798
3,626,041
440,498
40,025,038
9,411,320 496,029 628,862 10,536,211 72,924,418 2,241,263
75,556
2,316,819
42,341,857
149,118,631 73,790,293
OPERATING EXPENSES
Figures in Rands
Figures in Rands
2012
2011
4,825,818
6,687,545
32,000
432,275
315,929
41,916
12,335,483
4,111,055
6,210,355
39,600
276,963
227,032
622,161
11,487,166
Operating surplus
1,607,566
Other income
Deferred income - Europa
157,484
Deferred income - Rec Doc
133,578
Other income
-
Subsidy received - Fleurhof
43,202,788
Extra ordinary income
Fair value adjustments
(47,259)
43,446,59
Other non operating expenses
Depreciation
(232,502)
Lease rentals - Operating lease expense
(484,607)
(717,109)
JMJV Project
Deferred Income - JMJV
839,034
Impairment loss - JMJV Investment
(152,875)
686,159
Net Finance Cost
Finance costs
(1,344,948)
Interest received
1,067,518
(277,430)
2,527,205
REVENUE
Cost Recoveries Operations
Rental Income
Lease fee
Donor funding
Administration and management fees
Project management fees
Surplus for the year
44,745,777
For a full financial report please e-mail
your request to [email protected]
157,484
133,578
70,440
4,180,135
4,541,637
(173,216)
(299,977)
(473,193)
839,034
(69,016)
770,018
(1,018,491)
691,665
(326,826)
7,038,841
Access Card Accounting Fees
Advertising
Auditors remuneration
Bad debts
Bank charges
CIDA Expenses
Cleaning
Commission paid
Computer expenses
Coupon expense
Donations
Employee costs
General Expense
Gifts
Insurance
IT expenses
ITC Credit Checks
Lease rentals - Contractual amounts
Legal expenses
Loss on disposal of asset
Motor vehicle expenses
Other expenses
Printing and stationery
Professional fees
Project Investigation
Repairs and maintenance
Security
Smart card expenses
Staff welfare
Subscriptions
Telephone and fax
Training
Travel - local
Utilities
Operating surplus
2012
2011
90,836
926
44,155
55,993
43,411
82,387
29,513
581,062
7,850
38,676
24,806
-
3,787,323
38,433
1,881
70,554
-
5,731
94,447
7,980
933
29,810
26,503
60,284
56,085
23,540
1,220,421
641,561
13,944
700
125,288
154,489
19,358
88,426
3,260,611
10,727,917
1,607,566
55,139
69,742
55,130
31,147
63,860
32,551
677,311
6,800
15,313
5,660
740
2,808,400
61,188
29,731
3,158
74,676
7,377
18,598
22,081
68,419
31,026
824,307
595,007
5,234
2,414
121,537
117,027
9,049
29,821
3,135,616
8,959,961
2,527,205
• 16 kapteijn street, hillbrow, johannesburg, south africa
• private bag x33, hillbrow, 2038, south africa
• telephone: +27 (0)11 725 3284
• facsimile: +27 (0)11 720 5393
• [email protected] • www.mh.org.za
• company reg no:2004/012568/08
•
• madulammoho • housing • association
Photographer: Graham de Lacy - www.grahamdelacy.com
pbo no. 930019716