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.
5
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
6
ORGANISATIONAL STRUCTURE 2012/13
Shareholder
NDA Board
Chief Executive Officer
·
·
·
Directorate:
Development
Management
Internal Audit
Legal and Risk
Company Secretariat
Directorate:
Research, Evaluation
and Capacity Building
CEO Office Support
Directorate:
Finance, SCM and IT
Directorate:
Human Resources
Grants Funding
and Management
Research and
Policy
Financial
Management
Human Resource
Management
Provincial Offices
Capacity Building
Information
Technology
Training and
Development
PMU and Resource
Mobilisation
Directorate:
Marketing and
Communications
Communications
Lobbying and
Advocacy
Monitoring and
Evaluation
7
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.
Strategic Objective 2
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.
Strategic Objective 3
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.
Strategic Objective 4
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 and maintain organisational excellence and sustainability
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 -
happened through the provincial sector for a.
duplication.
As they already
This was to avoid
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.
Strategic Objective 4
To promote and maintain organisational excellence and sustainability
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.
Strategic Objective 4
To promote and maintain organisational excellence and sustainability
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.
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 network
 Marketing cost increased due to the increased drive to achieve improved NDA visibility and
reach to communities we serve
 Professional and consulting fee increases mainly due to legal fees and forensic costs
 Annual external audit fees increases
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:

Rental Deposits for leased offices

Other receivables and employee advances
TOTAL RECEIVABLES
2013
R 1.4m
R 0.4m
R 1.8m
3. Liabilities
The Cash and Bank balances held are committed as shown in 1. above.
2012
R 1.4m
R 0.4m
R 1.8m
Cash flow statement
Thank you
THANK YOU