presentation of the national development agency annual report 2012/13 portfolio committee on social...

PRESENTATION OF THE NATIONAL DEVELOPMENT AGENCY ANNUAL REPORT 2012/13

Portfolio Committee on Social Development, 05 November 2013

CONTENT

PURPOSE

INTRODUCTION

Role and Mandate

Mission, Vision and Values

Organisational Structure

STRATEGIC GOALS AND STRATEGIC OBJECTIVES

MEASURING OUR DELIVERY AGAINST STRATEGIC OBJECTIVES

STRATEGY TO OVERCOME AREAS OF UNDERPERFORMANCE

PURPOSE

To present the Annual Report of the National Development Agency to the Portfolio Committee on Social Development, Parliament of the Republic of South Africa

INTRODUCTION

4

ROLE AND MANDATE

In terms of the National Development Agency (NDA) Act (Act No 108 of

1998 as amended), NDA was mandated to contribute towards the

eradication of poverty and its causes by granting funds to civil society

organisations (CSOs) to:

Implement development projects in poor communities, and

Strengthen the institutional capacity of other CSOs that provide

services to poor communities.

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MISION, VISION AND VALUES

Vision

A society free from poverty.

Mission

Facilitate sustainable development by strengthening civil society organisations

involved in poverty eradication through enhanced grant funding and research.

Values

Integrity

Accountability and Responsibility

Transparency

Excellence

Partnering

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ORGANISATIONAL STRUCTURE 2012/13

CEO Office Support

· Internal Audit · Legal and Risk · Company Secretariat

Directorate:Development Management

Directorate: Finance, SCM and IT

Directorate:Research, Evaluation and Capacity Building

NDA Board

Chief Executive Officer

Provincial Offices

PMU and Resource Mobilisation

Grants Funding and Management

Capacity Building

Monitoring and Evaluation

Research and Policy

Information Technology

Financial Management

Directorate: Human Resources

Training and Development

Human Resource Management

Directorate: Marketing and

Communications

Lobbying and Advocacy

Communications

Shareholder

STRATEGIC GOAL AND OBJECTIVES 2012/13

STRATEGIC GOAL To leverage strategic partnerships to eradicate poverty to enable poor

communities to achieve sustainable livelihoods.

STRATEGIC OBJECTIVES To carry out programmes or projects aimed at meeting the development

needs of poor communities To undertake research and publications aimed at providing the basis for

development policy To strengthen the institutional capacity of civil society organisations To promote and maintain organisational excellence and sustainability To promote debate, dialogue and sharing of development experience

MEASURING DELIVERY AGAINST STRATEGIC OBJECTIVES

9

Strategic Objective 1

To carry out programmes or projects aimed at meeting the

development needs of poor communities

CSOs IMPLEMENTING POVERTY ERADICATION PROGRAMMES FUNDED

ACHIEVEMENTS: 3 programmes on Early Childhood development (ECD), Food Security

programme and Income Generation were approved R26.6m Rand value allocated to ECD programmes against the target of

R22.4m. R30.2m Rand value allocated to Income Generation programmes

against a target of R30m. R79m Rand value allocated to projects against a target of R74.8m. R71.1m Rand value disbursed against a target of R42m - includes

disbursements to projects approved in the previous years. R10.8m Rand Value of investment in ECD infrastructure against a target

of R6.3m.

CSOs IMPLEMENTING POVERTY ERADICATION PROGRAMMES FUNDED (cont…)

153 Food gardens on ECD sites funded against a target of 129 Food

gardens.

73.1% Youth and children targeted in NDA focus areas against a target of

20%.

R80.6m Rand Value of funds mobilised for poverty eradication

programmes against a target of R80m.

4122 beneficiaries of ECD against a target of 3850 beneficiaries.

3480 beneficiaries of Food Security against a target of 2912 beneficiaries.

507 Jobs created through ECD against a target of 114 jobs.

477 Jobs created through Food Security against a target of 400 jobs.

CSOs IMPLEMENTING POVERTY ERADICATION PROGRAMMES FUNDED

DEVIATIONS : R18.7m Rand value Food Security against a target of R22.4m - Food security

beneficiaries target was met with reduced funding representing efficiency in utilisation of resources.

667 ECD practitioners trained against a target of 774 - Although the training of the practitioners is currently underway, some of the modules and full qualifications have not been completed for recording in accordance with the required POE.

60.5% women beneficiaries targeted in NDA focus areas against target of 70% - under-achievement due to high uptake of youth, particularly in food security and income generation.

1.2% People with disability beneficiaries against a target of 10% - There was over-targeting in this area as the national norm is 2%.

906 Jobs created through Income Generation Programmes against a target of 1686 - target was reviewed to accommodate increased stipend for project members.


To undertake research and publications aimed at providing the basis for development policy

NDA RESEARCH AGENDA AND THINK TANK

ACHIEVEMENTS

Research Agenda was approved

None

DEVIATIONS

None

Think Tank not established - The Launch for the Think Tank was postponed

to next financial year due to a long vetting process for potential members of

structure

RESEARCH TO SUPPORT INTERNAL FUNCTIONS

ACHIEVEMENTS

88 close out evaluation reports on NDA funded projects produced

exceeding a target of 85.

3 case studies produced on NDA programme areas meeting the annual

target of 3.

4 good practice reports produced on NDA programme areas meeting the

annual target of 4.

12 Synthesis reports produced meeting the annual target.

47 Performance Monitoring reports produced for NDA funded projects

exceeding a target of 42.

4 Research Reports on NDA programme areas exceeding a target of 2.

5 Position papers/policy briefs on NDA programme areas exceeding a

target of 4.

RESEARCH TO SUPPORT INTERNAL FUNCTIONS

DEVIATIONS 38 baseline reports produced on NDA approved projects against a

target of 58 -There were fewer projects that required baseline information funded by the NDA.

47 mid-term evaluation reports on NDA funded projects against a target of 127 - There were fewer projects that required midterm evaluation than the targeted.

Online Resource Centre not established - due to delays in completing the configuration of the IT tool for hosting the Online Resource Centre.

Impact assessment report not produced - caused by the long time it has taken to plan and conduct the impact assessment.

• .

RESEARCH TO SUPPORT INTERNAL FUNCTIONS (Cont…)

Journal articles not produced against a target of 2 - the research studies that will inform the journal articles were completed in March 2013 limiting the time required to complete writing and producing journal articles.

Development report not produced against a target of 1 - caused by the long time it has taken to plan and conduct the studies required to write and produce the development report.

South African CSOs MDGs Country report not produced against a target of 1 - caused by the long time it has taken to plan and conduct the studies that will inform the MDGs country report.


To strengthen the institutional capacity of civil society organisations

STRENGHTHENED CIVIL SOCIETY ORGANISATIONS

ACHIEVEMENTS 223 CSOs capacitated in governance; financial, project & conflict management;

business plans, strategic planning and technical skills exceeding an annual target of

210. 3831 CSOs Beneficiaries from CSOs capacity building interventions (governance;

financial, project & conflict management; business plans, strategic planning and

technical skills) exceeding an annual target of 2520. R4.4m allocated and disbursed to Capacity Building for Lobbying and Advocacy

to CSOs networks exceeding an annual target of R4.2m. CSO’s Database by geographic location and sector developed as planned.

DEVIATIONS 78% of CSOs demonstrating improved implementation (governance; financial,

project & conflict management; business plans, strategic planning and

technical skills) - deviation was due to poor improved performance from

participants who were trained on financial management which averaged 58%

improvement.


To promote and maintain organisational excellence and sustainability

Human Resources

COMPLETE STAFF COMPLEMENT AND COMPETENT WORKFORCE

ACHIEVEMENTS

2.26% of vacancy rate against approved staff complement against a target

of 5%.

1.75% Staff turnover in critical skills against a target of 8%.

70% staff trained according to Work Skills Plan meeting the planned

target of 70%.

96.1% of all staff achieving a performance rating of 3 and above

exceeding the planned target of 95%.

DEVIATIONS

None

CONDUCIVE ORGANISATIONAL CLIMATE & ORGANISATIONAL SYSTEMS AND PROCESSES REVIEWD AND IMPROVED

ACHIEVEMENTS

62.5% of positive rating of staff perceptions achieved exceeding a target of

60%.

100% implementation of recommendations from the climate and perception

survey report as meeting the planned target of 100%.

100% of HR strategy executed per timeline exceeding an annual target of 80%.

100% Compliance to HR-related legislation and regulations meeting the

planned target of 100%.

80% Reduction in repeat internal and external audit findings meeting the

planned target of 100%.

DEVIATIONS None

MONITORING AND EVALUATION OF EMPLOYEE PERFORMANCE

ACHIEVEMENTS

98% of staff performance contract submitted on time exceeding a target

of 90%.

98% of staff performance reviews conducted bi-annually exceeding a

target of 90%.

DEVIATIONS

None

Strategic Objective 4 & 5


To promote debate, dialogue and sharing of development experience

Marketing and Communications

RESOURCE MOBILISATION EVENTS & NETWORKS AND NETWORKS AND PLATFORM HOSTED

ACHIEVEMENTS

3 events of resource mobilisation events hosted exceeding the planned

target of 2.

9 CSO Provincial Sector Fora hosted meeting the planned target of 9.

1 National CSO Sector Forum hosted meeting the planned target of 1.

2 NDA profiling events sponsored meeting the planned target of 2.

DEVIATIONS

None

CSO DIALOUGUES FACILITATED

ACHIEVEMENTS

None

DEVIATIONS

4 of Provincial Dialogues hosted against a target of 9 – As it already

happened through the national CSO sector forum. This was to avoid

duplication.

1 of National dialogue not hosted as planned - As they already

happened through the provincial sector for a. This was to avoid

duplication.

NDA BRAND AWARENESS AND STAKEHOLDER SATISFACTION

ACHIEVEMENTS

None

DEVIATIONS

Brand survey not conducted - Survey moved to 2013/14 financial year.

Customer satisfaction survey not conducted - A follow-up survey was

undertaken but was disqualified due to the low number of responses

received.

COMMUNICATION TOOLS TO SUPPORT NDA PROGRAMMES

ACHIEVEMENTS

12 NDA publications produced as planned.

R1m Rand value of free publicity (print, electronic and online) secured

exceeding a target of R250 000.00.

676 246 NDA website hits exceeding a target of 25 000hits

10000hrs spent on NDA website exceeding a target of 85hrs.

11 audio visual material collected from dialogues against a target of 10.

114 Internal communications initiatives implemented (Rara Sessions,

Newsflash and Newsletter) exceeding a target of 110.

7 Special Development Profiling Events implemented as planned.

COMMUNICATION TOOLS TO SUPPORT NDA PROGRAMMES

DEVIATIONS

R398 742 Rand value of media advertorials secured against a target

of R700 000 - The final approved budget was R300 000 vs the R700 000

in the Annual Performance Plan.

Intranet hits were not monitored – Due to the delays in implementing

the ERP system as the tender was withdrawn.



FINANCE

EFFICIENT AND EFFECTIVE MANAGEMENT OF PROCUREMENT

ACHIEVEMENT

88% compliance to procurement regulations achieved against a target of

100%.

95% compliance to all PFMA and Treasury regulations as planned.

DEVIATIONS

None

SOUND FINANCIAL MANAGEMENT AND OPTIMAL CASH MANAGEMENT

ACHIEVEMENT

59:41 Ratio, mandate vs administration costs as percentage of

Government Grant achieved against a target of 55:45 ratio.

100% cash efficiently managed as planned.

100% Surplus cash investments within target set per policy.

DEVIATIONS

None

EFFICIENT AND SECURE ICT SYSTEM, HARDWARE AND NETWORKS

ACHIEVEMENT

48hrs as minimum time on disaster recovery achieved as planned.

99.8% of uptime on ICT network achieved exceeding an annual target of 90%.

DEVIATIONS

35% of implementation of ICT improvement project achieved against a

target of 100% - The integrated ERP system not implemented due to

insufficient responses to the tender resulting in the tender withdrawal.

IT User Satisfaction Rating on Customer Survey not conducted - due to

the cancellation of the ERP systems implementation.



Risk, Audit and Governance

EFFECTIVE AND EFFICIENT CORPORATE GOVERNANCE

ACHIEVEMENTS

80% audit findings closed out exceeding an annual target of 70%.

80% Compliance to governance principles and prescripts as planned.

DEVIATIONS

None

MAINTAIN A POSITIVE AUDIT OUTCOME

ACHIEVEMENT

Unqualified AG audit report

DEVIATIONS

None

EFFECTIVE RISK MANAGEMENT, FINANCIAL AND INTERNAL CONTROLS

ACHIEVEMENTS

70% reduction in high risks as planned.

90% reduction on number of fraud cases at project level as planned.

DEVIATIONS

80% Implementation of internal audit coverage plan against a target

of 100% - The Auditor General requested that Internal Audit perform

reviews on the performance information and management accounts. In

addition to the approved Internal Audit coverage plan five adhoc audits

were completed.

MONITORING AND EVALUATION OF ORGANISATIONAL PERFORMANCE

ACHIEVEMENTS

None

DEVIATIONS

71% performance was achieved against 2012/13 annual Performance

Plan deviating from the 80% planned target - During the planning

process, NDA did not anticipate the complexity of the work required in

planning key deliverables especially in work relating to research.

STRATEGY TO OVERCOME AREAS OF UNDERPERFORMANCE

Review of delivery model and organisational structure

NDA Board commissioned the Organisational Structuring Project with the aim of

aligning the strategy with structure and competencies to be able to deliver on the

strategic plan

Monitoring and evaluation

NDA Monitoring and Evaluation (M&E) Framework and Guidelines were developed

to promote and support the growing M&E culture in the National Development

Agency

Strategic workforce plan

NDA developed a Strategic Workforce Plan to support the achievement of the

NDA strategic goals by ensuring adequate supply of human capital in terms of both

numbers and skills.

FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2013

SUMMARISED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2013

COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE

1. INCOME

1.1 Recognised Transfer Revenue is made up as follows:

2013 2012

Transfer Revenue received from DSD R 166.3m R 161.4m

Funds mobilised from partners R 18.1m R 2.1m

The growth in transfer revenue of 13.1% year on year was mainly driven by increase in funds mobilised from other partners and government departments. The NDA allocation from DSD increased by

only 3% from R 161 million in 2012 to R 166 million.

1.2. Finance Income

Interest income fell by 14,7 year on year due to reducing cash balances and lower interest rates.

2. TOTAL EXPENSES

Total expenses increased by 18.1% year on year driven mainly by the increase in

mandate expenses.

2.1 Mandate Expenses The increase in Mandate Expenses is attributable mainly to the significant increase in the projects committed and managed on behalf of other partners and government departments.

2. MANDATE COSTS

2.1 Commitments to projects from NDA allocation 82 Projects worth R78.9 million were approved by PAC in 2013 financial year, all these projects were contracted and committed by end of March 2013. The commitments of R 72.9 million per Income statement are made up as follows:o - Current year commitments - R 78,9 milliono - Prior year commitments - R 0.573 milliono - Ring fenced funds 2013 Commitments - (R 6.5million)o - Net commitments per Income Statement - R 72.9million)

COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE

3. ADMINISTRATION EXPENSES

Administration expenses are driven mainly by infrastructure costs (Operating Costs) and staff costs due to the nature of NDA’s business.

3.1 Staff costs

The increase in compensation of employees of 19% is attributable to increase in staff compliment due to filling of critical posts that were vacant in the previous year and annual inflationary adjustment of 6.5% in salaries.

3.2. Operating Leases

The year on year of 13% in operating lease is attributable to average annual increase in rentals of 9% and the above inflation increase in municipal services expenses.

3.3 Other operating costs

Operating costs year on year increase of 38.5% was driven by increases was attributable to the following items :IT Communication costs increased due to implementation of new MPLS networkMarketing cost increased due to the increased drive to achieve improved NDA visibility and reach to communities we serveProfessional and consulting fee increases mainly due to legal fees and forensic costsAnnual external audit fees increases

2. MANDATE COSTS

2.1 Commitments to projects from NDA allocation 82 Projects worth R78.9 million were approved by PAC in 2013 financial year, all these projects were contracted and committed by end of March 2013. The commitments of R 72.9 million per Income statement are made up as follows:o - Current year commitments - R 78,9 milliono - Prior year commitments - R 0.573 milliono - Ring fenced funds 2013 Commitments - (R 6.5million)o - Net commitments per Income Statement - R 72.9million)

Statement of Financial Position as at 31 March 2013

Commentary on Statement of Position

1. Cash and Cash Equivalents

The Cash and Bank balances held are committed as follows as follows:

2013 2012 Tranches owing to approved projects R 83.7m R 90.4m Unspent portion of third party managed funds R 10.3m R 9.8m Cash due to creditors and employees R 11.4m R 11.4m Unencumbered Cash R 3.4m R 9.1m

TOTAL CASH BALANCES R 108.9m R 113.4m

The 4% decrease in cash balances is largely due increase in cash disbursements

to projects in the current year.

2. Exchange Receivables

The Receivables are made up as follows: 2013 2012 Rental Deposits for leased offices R 1.4m R 1.4m Other receivables and employee advances R 0.4m R 0.4m

TOTAL RECEIVABLES R 1.8m R 1.8m

3. Liabilities

The Cash and Bank balances held are committed as shown in 1. above.

Cash flow statement

Thank youTHANK YOU

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