National Development Agency
2009/10 Annual Report to
The Portfolio Committee on
Social Development
Cape Town
09 February 2011
By
NDA CEO: Ms Vuyelwa Nhlapo
1
TABLE OF CONTENTS
Introduction
2. NDA’s Mandate
3. Vision, mission and values
4. NDA strategic goals
5. Key achievements
6. Challenges and Intervention strategy
7. Financial report
8. Analysis of financial performance
9. Auditor-General report
10. Conclusion
1.
2
INTRODUCTION
•
•
•
The NDA 2009/10 annual report highlights achievements and challenges
for the 2009/10 financial year
In 2009/10 financial year, the NDA managed to receive an unqualified
audit report
The NDA is accountable to parliament through the Ministry of Social
Development. The NDA reports to the Ministry via the NDA Board, who is
the accounting authority. The Board exercises governance oversight
through the following NDA Board sub committees: Management and
Finance Committee, Audit & Risk Committee, Human Resources &
Remuneration Committee, Project and Programmes Screening and
Research and Development Committee
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NDA MANDATE
PRIMARY MANDATE
To contribute towards the eradication of poverty and its causes by granting funds
to civil society organizations for the purposes of:
•
carrying out projects or programmes aimed at meeting development needs of
poor communities; and
•
strengthening the institutional capacity of other civil society organizations
involved in direct service provision to poor communities
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NDA MANDATE…Conti
SECONDARY MANDATE
To promote:
•
consultation, dialogue and sharing of development experience
between civil society organizations and relevant organs of the state;
•
debate on development policy; and
•
the undertaking of research and publication aimed at providing the basis for
the development policy
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VISION, MISSION, VALUES
VISION
A developing society free from poverty
MISSION
Facilitate development through targeted grant funding, research and strategic
partnerships
VALUES
• Integrity
• Excellence
• Dignity
• Partnering
• Commitment
• Empowerment
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2009/10 STRATEGIC GOALS
GOAL 1: Promote sustainable development
GOAL 2: Promote organisational sustainability, development practice and excellence
GOAL 3: Promote interface between CSOs, research institutions, development
practitioners and the state on development issues
GOAL 4: Facilitate research that informs grant-funding decisions, procedures and
development policy
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KEY ACHIEVEMENTS FOR STRATEGIC GOAL ONE
Strategic Goal One: Promote Sustainable Development
Outputs
Food Security Projects
Funded
Achievements for 2009/10
• A total amount of R111.1 million was disbursed to 396 approved projects
• A total of 77 projects was approved for funding to the value of R95m. The 77 projects
included:
- 11 food security projects funded to the value of R13.3 million
- 45 income-generating projects funded to the value of R54.2 million
- 15 Agriculture and agribusiness projects funded to the value of R23.4
million
- 6 networks of NGO’s funded to strengthen capacity of their membership to the value of
R3.8million
• 3 551 beneficiaries supported through food security projects, including women,
youth and people with disabilities
Income Generating Project
Funded
• 45 income generating projects funded to the value of R54.2 million
- 1 761 employment opportunities created through income-generating projects
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KEY ACHIEVEMENTS FOR STRATEGIC GOAL ONE-- conti
Strategic Goal One: Promote Sustainable Development
Outputs
Targeted Agricultural and
Agri-business projects
Identified and Funded
Achievements for 2009/10
• 15 Agriculture and agribusiness projects funded to the value of R23.4
million
- 1 071 beneficiaries supported through agricultural and agribusiness
projects, including 442 women, 504 men, 125 beneficiaries from
incubation centre. This includes 299 youth and 37 people with disabilities
• 77 Projects approved for funding with Capacity Building elements,
including governance, financial management, conflict resolution and
marketing
• Draft capacity-building framework developed in consultation with the
Department of Social Development
• 6 networks of NGO’s funded to strengthen capacity of their membership
to the value of R3.8million
Capacity Building support
to funded projects
• Capacity-building interventions implemented for 34 projects to enhance
institutional capacity and sustainability
• 9 SAQA-aligned training manuals developed in specific learning areas
relevant to NDA business
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KEY ACHIEVEMENTS FOR THE STRATEGIC GOAL ONE-- conti
Provincial Grant Allocation 2009/10
Province
Poverty
Index
Total Approved
Grant Allocation Writeback Allocation
Amount per Province
Eastern Cape
20.80
14 839 438
2 669 435
14 137 415
Free State
7.10
7 041 347
911 202
7 446 406
Gauteng
10.50
8 976 639
1 347 552
9 630 126
Kwa-Zulu Natal
22.60
15 864 005
2 900 444
19 274 263
Limpopo
15.50
11 879 579
2 002 077
14 774 746
Mpumalanga
7.90
7 496 710
1 013 872
7 852 903
Northern Cape
1.80
4 024 567
231 009
5 630 955
North West Province
9.30
8 293 595
1 193 546
8 304 394
Western Cape
4.50
5 561 417
577 522
7 619 306
National
332 273
83 977 297
12 846 658
95 002 787
Total number
approved
projects
9
7
8
10
11
6
8
8
9
1
77
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KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO
Strategic Goal Two Promote Organisational sustainability, Development practice and excellence
Outputs
R50 million by
2012 in kind and
cash, in addition to
government grant
Achievements for 2009/10
Resource Mobilisation strategy has been developed
• Two MOU’s (Asgisa and Masisizane) were signed with these strategic partners for facilitation and
coordination of programmes in rural economic and development zones
• Various MOU’s were signed at the level of funded project as part of implementation of
funded projects
No cash raised but R40 million raised in kind for projects implementation
Repositioning of
the Organisation
• The media profile of the NDA improved as a result of funded projects being profiled in various
newspapers, magazines and online media
• Awareness of the NDA increased in communities as community-building initiatives were
undertaken through projects launches in five provinces
• Various publications targeting specific stakeholders were produced and distributed extensively
• Strategic partnerships were formed with government , business and civil society
organisations elevating the level of engagement
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KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO -- conti
Strategic Goal Two: Promote organisational sustainability, development practice and excellence
Outputs
Repositioning of the
Organisation
Achievements for 2009/10
An integrated marketing and communications strategy aimed at improving the image of
the organisation was revised and approved during the 09/10 financial year
Vulnerable Groups Identified
and empowered
Two disabled persons were appointed
The EE plan was approved and submitted to the Department of Labour
• Occupational Health and Safety (OHS) policy developed, approved and Implemented
• 15 OHS representatives were appointed
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KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO-- conti
Strategic Goal Two: Promote organisational sustainability, development practice and excellence
Outputs
Achievements for 2009/10
Reduce costs to achieve
65% direct project funding
/ 35% support and
administration costs split
65% of direct project funding / 35% of support and administration costs split was not
achieved
Approved and aligned
organisational structure to
strategy
• “AS IS” processes for each directorate have been mapped and documented
• The “TO BE: processes for the following directorates are mapped and documented:
- Finance
- Information Technology
- Procurement
- Research and Development
- CEO’s Office (Inclusive of COSEC and Legal & Risk Management)
- Development Management
- Marketing and Communications
- Human Resources
Cost reduction strategy drafted
Awaiting the outcome and the finalisation of the business process optimisation. The
structure design approach and methodology developed and approved
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KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO-- conti
Strategic Goal Two: Promote organisational sustainability, development practice and excellence
Outputs
Best Practice Policies,
procedures and unit strategies
Achievement for 2009/10
The following policies were approved and implemented:
- The Employee Relation Policy
- The Performance Management Policy
- The Remuneration Policy
- The Human Resource Development Policy
- The Probation Policy
- The Confidentiality Policy
- The Occupational Health and Safety Policy
- The Talent Management Policy
• A three-tiered performance management system (organisational scorecard, directorate
scorecard and employee scorecards) implemented across the organisation
• All employees have performance contracts based on the strategic objectives of the
respective directorate
• Performance appraisals are conducted bi-annually
•Training and workshops on performance management conducted to capacitate
managers to deal with performance management related issues
• Human resource service level agreement(SLA) template developed and distributed
across the organisation
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KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO-- conti
Strategic Goal Two: Promote organisational sustainability, development practice and excellence
Outputs
Unit Strategies aligned to NDA strategy
Achievements for 2009/10
• The NDA 2010 – 2013 strategy document produced on
time for tabling in Parliament
• All unit strategies have been approved
Compliance and good governance
• Enterprise-wide risk management implemented
• 50% of audit findings addressed
Compliance checklist implemented
Living the NDA values
Values have been incorporated in the NDA performance
management system
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KEY ACHIEVEMENTS FOR STRATEGIC GOAL THREE
Strategic Goal Three: Promote the Interface between CSO’s, research institutions, development practitioners and the
State on development Issues
Outputs
Achievements for 2009/10
Sector relevant and recognised plan for dialogue
Draft sector strategy developed and sent for consultation
Measure efficacy of dialogues facilitated on
public policy, grant funding and service delivery
issues
Tool is undergoing consultation
Dialogues facilitated on relevant development
Issues
A strategic policy dialogue on the developmental state and the fight
against poverty in South Africa was done in Gauteng
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KEY ACHIEVEMENTS FOR STRATEGIC GOAL FOUR
Strategic Goal Four: Facilitate research that informs grant-funding decisions, procedures and development policy
Outputs
Achievements for 2009/10
Functional Database
The In-touch database has been approved and installed at the provinces
and is operational
Functional Resource Centre
• Resource centre material made accessible to staff
• Desktop research on poverty and developmental Issues has been
continuously disseminated to provinces
Detailed reports of funded projects
Impact performance projects visits were done in preparation for the
2010/2011 impact studies
Sector-specific studies
National Study on the State of ICT on South African NGO sector was
planned and carried out successfully
Documents produced and lessons shared
from case studies to influence policy
Two best-practice case studies for funded projects produced
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CHALLENGES & INTERVENTION STRATEGY -- conti
Challenges
Limited financial resources
Intervention Plan
Resource Mobilisation
Inadequate skills and competencies • Ongoing skills training on financial
of NDA staff to provide effective
management and alternative
support to funded projects
dispute resolution (ADS)
• Training and institutionalisation
of results-based monitoring and
evaluation framework
• Strengthening recruitment and
selection process for newly
appointed staff
• Deploying skills in right positions
18
CHALLENGES & INTERVENTION STRATEGY -- conti
Challenges
Limited management, institutional
and technical capacity of funded
projects
Intervention Plan
• Periodic capacity assessment
of all
funded projects
• Targeted skills enhancement
programme for funded projects
(Financial management, governance,
conflict resolution)
• Institutional linkages with expert
organisations for skills transfer,
coaching and mentorship (ARC,
Producers Associations)
• Fostering closer relationships with
local government, particularly LED
desks for ongoing support, oversight
and reporting
• Financial and non-financial support
to CSO national and sectoral
networks to provide capacity
support to their members
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CHALLENGES & INTERVENTION STRATEGY -- conti
Challenges
Inadequate performance
monitoring and evaluation of
funded projects
Intervention Plan
• Rigorous implementation and enforcement
of annual monitoring plan
• Increased resource allocation for project
monitoring
• Increased frequency of monitoring visits
• Dedicated support to funded projects to
improve implementation and reporting
• Establishing a network of professional
volunteers to provide specialist support to
funded projects
• Evaluation and impact assessment of all
funded projects (mid and end-term)
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FINANCIAL REPORT: 2009/10
Summarised Statement of Financial Performance for the year ended 31 March 2010
2010
2009
R
Revenue
Grant from Government
Interest & Other Income
161 022 034
144 782 000
16 240 034
R
163 449 382
136 267 000
27 182 382
Expenses
162 298 183
195 428 909
89 643 788
94 689 034
120130910
114 236 418
(12 361 533)
7 316 287
(2 818 048)
8 712 540
72 654 395
46 396 708
5 246 543
4 732 224
1 800 038
2 341 546
1 534 898
1 770 069
1 089 994
0
7 742 375
(1 276 149)
75 297 999
43 292 915
5 107 913
3 120 987
1 269 137
5 240 474
1 237 816
1 376 173
1 216 973
2 343 266
11 092 345
(31 979 527)
Mandate expenses
Committed poverty eradication projects
Project Write Backs
Direct project costs
Administration expenses
Staff costs
Operating leases
Accommodation and travel
Board fees
Consulting and professional fees
Depreciation and amortisation
IT Communications costs
Marketing and communication costs
Office relocation costs
Other Expenditure
Net deficit for the year
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FINANCIAL REPORT: 2009/10---Conti
Statement of Financial Position
As at 31 March 2010
2010
2009
R
R
216 141 107
1 299 604
217 440 711
246 519 366
2 049 660
248 569 026
3 772 133
1 045 302
4 817 433
3 897 568
1 434 122
5 331 689
222 258 144
253 900 715
4 431091
3 108 139
150 105 053
22 512 065
180 156 348
6 915 583
2 932 697
179 641 909
21 668 312
211 158 501
Net Assets
42 101 796
42 742 215
IDT establishment fund
Accumulated surplus
40 956 398
1 145 397
40 956 399
1 785 816
Assets
Current assets
Cash and Bank balances
Exchange Receivables
Non-current assets
Property, Plant and Equipment
Intangible Asset
Total assets
Liabilities
Current liabilities
Payables and Provisions
Short-term employee benefits
Provision for Committed projects
European Union
22
Total Liabilities & Net Assets
222 258 144
253 900 715
ANALYSIS OF FINANCIAL PERFORMANCE
Income
• Grant received from National Treasury through the National Department of
Social Development increased by 6% (R8.5M)
• Interest on bank balances went down by 28%( R10,6 million) due to
reduction in interest rates and declining cash holdings
Project Commitments
• The NDA Board approved 77 projects to the value of R95 million
- These projects benefited 7 397 direct beneficiaries, 3 917 of which are
women, 3 480 men and 3 532 youth
- Projects worth R 12.4million were written back in 2009/2010 mainly due to
project related challenges and environmental factors
Admin Expenses
• Admin expenses reduced by 3 % from 2009. This reduction is attributable
to cost containment measures that were put in place
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AUDITOR-GENERAL REPORT
For the 2009/10 financial year, the NDA achieved an
unqualified report with an emphasis of matter on irregular
expenditure to the amount of R881 819 where proper
procurement processes were not followed
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CONCLUSION
The NDA believes that through the successful engagement in poverty
eradication initiatives and the constructive impact it has on the lives of
its beneficiaries, poverty challenge can be defeated
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Thank You
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