PRESENTATION OF THE NDA 2014/15 ANNUAL REPORT TO THE PORTFOLIO COMMITTEE OF SOCIAL DEVELOPMENT 14 OCTOBER 2015 Presented by: Ms Nelisiwe Vilakazi

CONTENT  Purpose  NDA Role and Mandate  NDA Mission, Vision and Values  Organisation Structure  Human Capital  Strategic Focus Areas  Strategic goals and objective 2014/15  Programme Performance  Enhancing NDA visibility  Financial Report for year end 2

PURPOSE To present the NDA 2014/15 Annual Report to the Portfolio Committee of Social Development for consideration. 3

NDA ROLE AND MANDATE ROLE AND MANDATE ACCORDING TO THE ‘ACT’ 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 CSOs that provide services to poor communities. 4

NDA MISSION, VISION AND VALUES A society free from poverty VISION Facilitate sustainable development by strengthening civil society organisations involved in poverty eradication through enhanced grant funding and research. MISSION Integrity Dignity Empowerment Accountability and Responsibility Transparency Excellence Partnering VALUES 15

6 ORGANISATIONAL STRUCTURE

NDA STRATEGIC FOCUS AREAS The NDA focuses on the following areas in support of government priorities on poverty eradication on its primary mandate:  Early Childhood Development  Food Security  Income Generation (Programmes and Projects)  Capacity Building For the secondary mandate the NDA focuses on:  Research  Policy debates  CSO dialogues 7

STRATEGIC GOAL AND OBJECTIVES 2014/15 The objectives of the NDA strategic plan are:  To expand access to capacity building interventions to CSOs in order to improve the quality of the services they deliver to communities  To fund ECD, food security and income generation projects and programmes  To expand access to capacity building interventions to CSOs in order to improve the quality of the services they deliver to communities  To fund ECD, food security and income generation projects and programmes 8

STRATEGIC GOAL AND OBJECTIVES 2014/15 The objectives of the NDA strategic plan are:  To monitor and evaluate all NDA-funded programmes by 2019  To undertake research aimed at providing the basis for development policy and programme implementation, focusing on poverty eradication, unemployment and inequality  To mobilise resources in cash and in kind through sustainable partnership towards supporting and building the capabilities of communities and households for self-reliance  To develop and implement systems and processes to improve the efficiency and effectiveness of internal control and organisational performance 9

PROGRAMME PERFORMANCE 10

PROGRAMME 1: CAPACITY BUILDING  The Capacity Building programme implement activities that support grant funding and capacity building for civil society organisations (CSOs). The strategic objectives of the capacity building programme are:  To expand access to capacity building interventions to civil society organisations in order to improve the quality of services they deliver to communities.  To fund ECD, Food Security and Income Generation projects and programmes. 11

PROGRAMME 1: CAPACITY BUILDING PERFOMANCE NOPERFORMANCE INDICATORPLANNED TARGET 2014/2015 ACTUAL ACHIEVEMENT 2014/2015 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 1 Number of NDA-funded ECD practitioners enrolled in NQF Level 4 training Value of funding to ECD, food security and income generation projects and programmes R33.2 mR32.7R0.5 m 3 Value of grants disbursed R80 mR75.8 mR4.2 m 4 Number of evaluation reports on outcomes and impact of the NDA’s programme 10 (1) 5 Number of beneficiaries Number of policy briefs and papers produced

PROGRAMME 1: CAPACITY BUILDING PERFOMANCE NOPERFORMANCE INDICATORPLANNED TARGET 2014/2015 ACTUAL ACHIEVEMENT 2014/2015 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 7 Number of mid-term evaluations on NDA grant-funded projects conducted Number of close-out evaluations on NDA grant-funded project reports produced Number of performance monitoring reports on NDA grant-funded projects produced

PROVINCIAL BREAKDOWN PER SECTOR – 2014/15 PROVINCE No. Projects Amounts Approved No. of CSOs Capacitated No. of NPOs staff capacitat ed NUMBER OF PROJECTS Income Generation Food Security ECD Eastern Cape18R Free State20R Gauteng23R Kwazulu-Natal19R Limpopo22R Mpumalanga18R Northern Cape21R North West47R Western Cape54R TOTAL 242 R

CAPACITY BUILDING PROVINCIAL DEMOGRAPHICS – 2014/15 15 Province No. of CSOs Capacitated No. of NPOs staff capacitated Males Disability Eastern Cape (10%) 16 (1.6%) Free State (24%) 10 (2.2%) Gauteng (31%) 12 (2.5%) Kwazulu-Natal (27%) 12(2.7%) Limpopo (13%) 17 (4%) Mpumalanga (18%) 14 (3%) Northern Cape (16%) 13 (2.8%) North West (24%) 24 (2.6%) Western Cape (19%) 14 (4.9%) TOTAL (20%) 132 (2.7%)

 The Research and development programme implement activities that support the secondary mandate of the NDA, through conducting research, producing research and evaluation information that informs policy and engaging in dialogues with stakeholders to bate policy and development issues. The strategic objective of the programme is:  To undertake research aimed at providing the basis for development policy and programme implementation, focusing on poverty eradication, unemployment and inequality 16 PROGRAMME 2: RESEARCH & DEVELOPMENT

PROGRAMME 2: RESEARCH & DEVELOPMENT PERFORMANCE NOPERFORMANCE INDICATORPLANNED TARGET 2014/2015 ACTUAL ACHIEVEMENT 2014/2015 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 15 Number of mid-term evaluations on NDA grant-funded projects conducted Number of close-out evaluations on NDA grant-funded project reports produced Number of performance monitoring reports on NDA grant-funded projects produced Number of evaluation reports on outcomes and impact of the NDA’s programme 10 (1) 19 Number of research reports produced Number of policy briefs and papers produced

PROGRAMME 2: RESEARCH & DEVELOPMENT PERFORMANCE NOPERFORMANCE INDICATORPLANNED TARGET 2014/2015 ACTUAL ACHIEVEMENT 2014/2015 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 19 Number of case studies on NDA programme areas produced Number of good practice publications on NDA programme areas produced

 The programme implement activities that seeks to to mobilise resources in cash and in kind through sustainable partnerships with the public, private and academic sectors to support and fund civil society organisations and programmes implemented by the NDA in order to increase NDA coverage and supplement resources provided by the state to the NDA. The strategic objective of the programme is:  To mobilise resources in cash and in kind through sustainable partnerships towards implementing community development programmes 19 PROGRAMME 3: RESOURCE MOBILISATION

PROGRAMME 3: RESOURCE MOBILISATION PERFORMANCE NOPERFORMANCE INDICATORPLANNED TARGET 2014/2015 ACTUAL ACHIEVEMENT 2014/2015 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 22Value of resources mobilised in cash and in kind towards supporting and building the capabilities of communities and households for self-reliance R100 mR104.2 mR4.2 m 23Number of partnership agreements signed towards supporting and building the capabilities of communities and households for self-reliance

RESOURCES MOBILISED FOR PROGRAMMES  The Programme Management and stakeholder Relations and Partnership programme facilitated and mobilised in kind and cash resources to support development programmes implemented by the NDA to fulfil the needs of CSO’s Programme Name Rand value of mobilised resources Capacity building programmeR Grant funding and project supportR ECD AwardsR Total resources mobilised R

 The governance and administration programme ensures that the NDA has required processes, systems, procedures, tools and internal policies that comply with statutory pre-requisites for good governance and administration. Its also ensures that the NDA has skilled and well equipped staff to deliver on the mandate. The strategic objective of this programme is:  To develop and implement systems and processes to improve the efficiency and effectiveness of internal control and organisational performance 22 PROGRAMME 4:GOVERNANCE AND ADMINISTRATION

NOPERFORMANCE INDICATORPLANNED TARGET 2014/15 ACTUAL ACHIEVEMENT 2014/2015 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 26 Percentage achievement of Organisational targets as set in the Annual Performance Plan 80%87%7% 27 Percentage of staff who achieved a performance rating of 3 and above 95% 0% 28 Percentage of positive rating on brand recognition achieved 70%0%(100%) * Not achieved 23

PROGRAMME 4: GOVERNANCE AND ADMINISTRATION NOPERFORMANCE INDICATOR PLANNED TARGET 2014/2015 ACTUAL ACHIEVEMENT 2013/4/2015 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT Unqualified report by Auditor-General Unqualified audit opinion No deviation 24

HUMAN CAPITAL COST PER PROGRAMME ProgrammeTotal expenditu re for the entity (R’000) Personnel Expenditure (R’000) Personnel expenditure as a percentage of total expenditure (%) Number of employees Average personnel cost per employee (R’000) Capacity Building Research & Development Resource Mobilisation Governance & Administration Total

HUMAN CAPITAL 26  The NDA currently has a staff compliment of 187 The diagram below illustrates the percentages of mandate vs. support staff within the NDA programmes.

ENHANCING THE IMAGE OF THE NDA  In enhancing the NDAS brand identity the Agency promoted its brand and exhibited along DSD Ministerial out reach programmes, participated at the International day for the eradication of poverty and held a partnership with the United Nations Development Programme and Nelson Mandela Foundation  Other visibility enhancement programmes targeted private events such as CSI Trialogue, Top Women Awards and partnering with SALGA  Above that the NDA continued to increase its footprint by increasing the number of it’s Advisory Centres situated in the various districts around the country  The NDA also took part in the Mikondzo project of the department of Social Development where awareness was made on NDA products and services 127

FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH

SUMMARISED FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH

SUMMARISED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH

COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE Introduction  The entity reported a deficit of R 12.4m for the financial year under review.  The reported deficit is an accounting deficit, not a cash deficit. This deficit is mainly due to inadequate funding of the NDA.  The key drivers of the overall financial performance for the financial year under review are reported Revenue  Entity revenue grew by 17% from R221.71m in 2013/14 to R 260.2m in 2014/15. The growth in revenue is driven by increase in conditional revenue from resource mobilisation which increased by 61% from R 44m in 2013/14 to R 71.1m in 2014/15.  Success achieved in resource mobilisation strategy was the key driver of growth in revenue that resulted in increase in conditional revenue and increase in management fee generated from implementation of projects on behalf of partners. 31

COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE TOTAL EXPENSES  Total expenses increased by 11.5% year on year driven mainly by the spending in three key programmes:  Grant Funding (Mandate)  Capacity building (Mandate)  Administration (Administration) Mandate Expenses  Growth in mandate expenses of 14% is driven by spending in the grant funding and Capacity building programmes.  The growth in capacity building programme is attributable mainly to CSO capacitation implemented on behalf of DSD provinces.  This spending grew by R 15 million ( 49%) from R 30 million in 2014 to R 45m in

COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE 2014/ /2014% Change Grants disbursed from own allocationR 50.1mR 73.1m-32% Grants disbursed from conditional grantsR 25.7mR 13.5m136% Sub- total : Grant FundingR75.8mR86.6m-12.9% Programme support costsR 26.6mR 26.0m2.3% Grand totalR 102.4mR 112.6m-9.1%

COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE  Spending in capacity building programme increased by 73.9%. This growth is driven by strategic shift towards capacity building coupled with increase in conditional funds raised from other government departments. Administration Expenses  Administration Expenses are driven mainly by compensation of employees and infrastructure costs.  Goods and services spend increased by 9% 2014/ /2014 % Change Capacity building from own allocationR 19.8mR 6.8m188% Capacity building from conditional grants R45.3mR30.4m49% Sub- total : Programme spentR 65.1mR 37.2m74.8% Programme support costsR 4.3mR 2.7m59.2% Grand totalR 69.4mR 39.9m73.9% 34

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH

COMMENTARY ON THE STATEMENT OF FINANCIAL POSITION Introduction  The following major items that constitute the organisations financial position are discussed hereunder:  Bank and cash balances  Unutilised third party funds  Accumulated surplus Bank and cash balances  Bank and cash balances of R 109m are made up mainly of the cash belonging to approved projects (R54m per Note 23), Unspent portion of funds mobilised (R41.7m) and liabilities of R 16.9m Unutilised third party funds  These funds represents funds mobilised from other government departments, not yet disbursed to identified projects Accumulated funds  These surpluses are made up mainly of funds committed to approved projects not yet disbursed (per Note 23). 36

COMMENTARY ON STATEMENT OF FINANCIAL POSITION Exchange Receivables Liabilities  The Cash and Bank balances held are committed as shown in 1. above Rental Deposits for leased officesR 1.6mR 1.4m Other receivables and employee advancesR 0.4m TOTAL RECEIVABLESR 2.0mR 1.8m 37

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