1. Beyond Boundaries 1 2014/15 ANNUAL REPORT

2. Beyond Boundaries PERFORMANCE AGAINST PREDETERMINED OBJECTIVES - 2015/16 FINANCIAL YEAR, 2015 TO 2020 STRATEGIC PLAN, ANNUAL PERFORMANCE PLAN FOR 2016/17 AND 2016 TO 2020 BUDGET MUNICIPAL DEMARCATION BOARD Briefing to the Select Committee on Cooperative Governance and Traditional Affairs Date: 17 May 2016 Time: 10:00 2 DELEGATION Mr AM Adam Deputy Chairperson: Municipal Demarcation Board Mr D Nkoane Chief Executive Officer Mr A Ramagadza Executive Manager: Operations & Research

3. Beyond Boundaries OUTLINE OF PRESENTATION Purpose of the presentation Institutional arrangements Legislative mandate Vision, mission and values Performance against predetermined objectives – 2015/16 Financial year 2015 – 2020 Strategic Goals 2015 – 2020 Strategic Objectives Emerging risks Key challenges New organisational structure Annual Performance Plan for 2016/17 Medium Term Performance targets Medium Term Expenditure Framework Concluding remarks Contact details 3

4. Beyond Boundaries PURPOSE OF THE PRESENTATION To enable the Select Committee to discharge its mandate of oversight on Budget Vote 4, specifically on the Municipal Demarcation Board. To present to the Select Committee: –Progress on achievement of targets for the 2015/16 financial year. –MDB Strategic Plan for period 2015 to 2020; –The Annual Performance Plan for the 2016/17 financial year; –The budget allocation of the institution; –Challenges encountered by the institution. 4

5. Beyond Boundaries INSTITUTIONAL ARRANGEMENTS THE BOARD The Board is led by an Executive Chairperson, and discharges its duties through subcommittees of the Board which are: –Executive Committee –Policy and Research Committee –Boundaries, Powers and Functions Committee –Remuneration and Human Capital Committee –Audit and Risk Committee ADMINISTRATION The administration supports the Board and is led by the Chief Executive Officer who is the Accounting Officer. The institution has four programmes which are: –Operations –Research and Knowledge management –Finance –Corporate Services 5

6. Beyond Boundaries LEGISLATIVE MANDATE Section 155(3)(b) of the Constitution Section 4(a) of the Municipal Demarcation Act 27 of 1998 (“MDA”) Section 4 of the Municipal Structures Act 117 of 1998 (“MSA”) provides for categorisation of municipalities Determination of municipal outer boundaries Schedule 1 to the MSA – MDB, after consultation with the Electoral Commission must delimit wards for purposes of local elections Delimitation of municipal ward boundaries Section 85 of MSA provides for the MDB to assess municipal capacity when determining boundaries Impact analysis and evaluation: Opportunity to evaluate impact of Board decisions Assessment of municipal capacity Section 4(b) of the MDA Opportunity to follow through on implementation of municipal boundary redeterminations Rendering of advisory services to stakeholders 6

7. Beyond Boundaries VISION, MISSION AND VALUES VISION The leading demarcation and spatial knowledge hub MISSION To produce municipal and ward boundaries that are functional beyond reproach and contributes towards a responsive spatial configuration, including municipal capacity assessments that lay the foundation for a developmental local government. VALUES Independence Fairness, transparency and integrity Stakeholder engagement Knowledge sharing Good Governance 7

8. Beyond Boundaries Progress on achievement of 2015/16 targets Quarter 1 to 4 8

9. Beyond Boundaries PERFORMANCE AGAINST PREDETERMINED OBJECTIVES - 2015/16 FINANCIAL YEAR Strategic Objective Performance Indicator Annual TargetActual performance Determination and re- determination of municipal boundaries All requests for boundary re-determinations processed 1.1 100% of requests for boundary re-determinations considered and processed 100% of requests for boundary re-determinations considered and finalised. Delimit wards to facilitate local government elections Delimit wards for all municipalities that qualify to have wards 2.1 100% of wards for the 2016 local government elections finalised. Capacity assessmentsDate by which to develop a new capacity assessment model 3.1 30 September 2015 The development of a new capacity assessment model was delayed due to section 22(2) proposals from which lesson learnt emanated. The capacity assessment model could only be developed upon completion of Section 22(2) process. Knowledge Development and partnerships with other similar research institutions Number of partnerships established with other similar research institutions 4.1 4 This target could not be achieved. Work is in progress to establish partnerships with local research organisations. MoU with StatsSA was signed. 9

10. Beyond Boundaries PERFORMANCE AGAINST PREDETERMINED OBJECTIVES - 2015/16 FINANCIAL YEAR Strategic Objective Performance Indicator Annual TargetActual performance Knowledge Development and partnerships with other similar research institutions Demarcation Review Symposium 4.2 1 This target could not be achieved. Lessons learned (policy & process) from the Section 22(2) boundary redetermination process could not be left out, hence the delay. Ensure Good Governance and Sound Financial Management Opinion of the Auditor General on Annual Financial Statements 5.1 Clean audit (Unqualified audit without emphasis of matter) Audit results still outstanding. Internal audit rating 5.2 Internal audit rating 2 (audit objectives met with housekeeping matters) Six internal audits have been completed as planned, and audit objectives have been met with housekeeping matters. Number of risk management reports 5.3 Four quarterly risk management reports produced Four quarterly risk management reports produced. 10

11. Beyond Boundaries PERFORMANCE AGAINST PREDETERMINED OBJECTIVES - 2015/16 FINANCIAL YEAR Strategic Objective Performance IndicatorAnnual TargetActual performance Ensure Good Governance and Sound Financial Management Number of findings on non- compliance with cost containment measures 5.4 Zero instances of non-compliance with National Treasury cost containment measures One known instances of non- compliance with National Treasury cost containment measures Number of sources of revenue 5.5 One additional source of revenue or funding Target not achieved. Contact has been made with potential partners, but an additional source of revenue have not been secured. Frequency of Organisational and Financial Performance Monitoring Reporting 5.6 One (1) Organisational and Financial Performance Monitoring Report issued Quarterly Organisational and Financial Performance monitoring reports issued per programme. Public Participation and Stakeholder Engagement Number of Public Awareness and Shareholder Engagement activities 6.1 (6) MDB Stakeholder engagement platforms created Radio campaign for the section 28 process; Social media platforms; Eight media releases were issued; 84 interviews conducted with MDB Chairperson, Board members and CEO. 11

12. Beyond Boundaries PERFORMANCE AGAINST PREDETERMINED OBJECTIVES - 2015/16 FINANCIAL YEAR Strategic Objective Performance Indicator Annual TargetActual performance Public Participation and Stakeholder Engagement Number of internal communication activities 6.2 4 internal communication activities Two internal corporate newsletters produced and circulated; Eighteen consolidated news bulletins circulated to Management and Board members. Number of external communication activities 6.3 4 external communication activities An educational DVD was developed and feature articles published in Municipal Focus and Government Digest magazines. Number of media analysis reports 6.4 4 media analysis reports Four media analysis reports have been compiled Number of perception surveys 6.5 2 Perception surveys One internal perception survey was conducted. Number of brand building campaigns 6.6 1 media campaign A media briefing was held on 27 August 2015 on the handover of wards to the IEC. 12

13. Beyond Boundaries PERFORMANCE AGAINST PREDETERMINED OBJECTIVES - 2015/16 FINANCIAL YEAR Strategic Objective Performance IndicatorAnnual TargetActual performance Human Resources Management Date by which an optimally functioning organisational structure is in place. 7.1 Approval of the proposed, revised organisational structure by 30 June 2015 The Board approved the Organisational structure at its meeting of 15 April 2016 subjected to amendments being made Percentage of employees on establishment having performance contracts in place 7.2 100% of staff having performance management contracts in place. 100% of staff have performance management contracts in place Frequency of conducting Performance Assessments 7.3 Conduct performance assessments twice a year per staff member Quarterly Performance assessments were conducted per staff member Number of teambuilding, leadership, change management and people management interventions 7.4 Two interventions teambuilding, leadership, change management and people management interventions conducted Teambuilding, leadership, change management and people management interventions were not conducted 13

14. Beyond Boundaries PERFORMANCE AGAINST PREDETERMINED OBJECTIVES - 2015/16 FINANCIAL YEAR Strategic Objective Performance IndicatorAnnual TargetActual performance Human Resources Management Date by which to complete evaluation of new remuneration strategy. 7.5 31 March 2016 New remuneration strategy and framework developed. Number of Wellness interventions conducted 7.6 Four employee wellness interventions conducted Two employee wellness interventions were conducted. Percentage of employees developed 7.7 100% of employees to have Personal Development Plans in place and adhered to. 100% of employees to have Personal Development Plans in place. Corporate Governance Date by which proposed amendments are compiled, approved by Board and submitted to Minister 8.1 Submit proposed amendments to legislation and proposed Regulations for Municipal Demarcation Act by 31 March 2016 The proposed amendments to legislation were tabled to the Board on 14 December 2016, 26 April 2016 and 03 May 2016. The process of drafting the proposed regulations will commence once the Board approves the final legislative proposals. 14

15. Beyond Boundaries PERFORMANCE AGAINST PREDETERMINED OBJECTIVES - 2015/16 FINANCIAL YEAR Strategic Objective Performance IndicatorAnnual TargetActual performance Corporate Governance Percentage of policies reviewed 8.2 100% of all policies scheduled for review Thirty-three policies were reviewed and submitted to the Board. Number of quarterly compliance reports 8.3 Four Compliance reports produced Four quarterly Compliance reports have been produced. Information Technology services Website visitor numbers 9.1 Increase website visitor numbers by 25%. Website visitor numbers increased by 25%. Infrastructure implemented 9.2 Implement new core infrastructure. New server hardware. New server software. New core infrastructure has not been implemented. 15

16. Beyond Boundaries 2015 to 2020 Strategic Plan 16

17. Beyond Boundaries 2015 - 2020 STRATEGIC GOALS (Reviewed) Strategic Outcome Orientated Goals Facilitate spatial and economic transformation through determination and re-determination of municipal boundaries Deepening participatory democracy through municipal ward delimitation. Assess the capacity of metropolitan, district and local municipalities Goal Statement Determine and re-determine municipal boundaries to enhance spatial and economic integration in line with the demarcation criteria. Provide pre-and post- demarcation coordination and support to ensure efficient and sustainable implementation of the Board determinations Advise service delivery departments of changes to municipal boundaries. Delimit wards for all municipalities that qualify to have wards into wards during 2016 and 2021 in terms of Schedule 1 to the Local Government: Municipal Structures Act, 1998. Handover of finalised wards to the IEC to facilitate the local elections. Conduct capacity assessments of municipalities to inform boundary determinations and adjustment of powers & functions between district and local municipalities. Revise the capacity assessment model.

18. Beyond Boundaries 2015 - 2020 STRATEGIC GOALS (Reviewed) Strategic Outcome Orientated Goals Strengthen Research and Knowledge Management Improved public participation through enhanced citizen engagement and communication Ensuring Good Governance and sound financial management Goal Statement Initiate research & form partnerships to develop and exchange spatial research data that will inform decision making on boundary matters. Coordinate and process data to produce information that will add value to the planning processes of municipalities. Conduct studies to establish whether previously demarcated municipalities are capable to discharge their duties. Create platforms to strengthen public participation and broad citizen engagement in the demarcation processes. Strengthen partnerships with key stakeholders to improve coordination and integration. Rebrand the organization in line with its new vision, mission & values. Create a national footprint by establishing specific MDB mandate representation at provincial level. Manage resources to accomplish strategic goals, effective financial planning, ensuring adherence to laws, regulations & contractual obligation. Improve efficiency and effectiveness of admin processes. Develop and nurture capabilities to ensure a pool of skills to drive implementation of the MDB strategy.

19. Beyond Boundaries 2015 - 2020 STRATEGIC OBJECTIVES Strategic Objective 123 Determination and re- determination of municipal boundaries Delimit wards to facilitate local government elections Capacity assessments of metropolitan, district and local municipalities Objective Statement To determine and re- determine municipal boundaries to enhance spatial and economic integration in line with the demarcation criteria for the period covered by this strategic plan. Develop municipal boundary re-determination policy and procedures by 2016. To delimit wards for all municipalities that qualify to have wards in order to conduct the local government elections in 2021. To evaluate the efficiency and effectiveness of the 2014 to 2016 ward delimitation process by 2016. To review the ward delimitation policy and procedures and to compile a project plan for the 2019 to 2021 ward delimitation process by 2020. Conduct capacity assessments of metropolitan, district and local municipalities to inform boundary determinations and to provide advice to MEC on the adjustment of powers and functions between district and local municipalities for the period covered by this strategic plan

20. Beyond Boundaries 2015 - 2020 STRATEGIC OBJECTIVES Strategic Objective 456 Research and Knowledge Management to improve advisory services Ensure good financial planning and management Provide and maintain a stable and secure ICT environment Objective Statement To establish and build relationships with similar organisations, international demarcation boards and other research units in order to leverage the capability of the MDB to become a knowledge hub and repository of demarcation information and data for the period covered by this strategic plan. Effective financial planning, efficient use of financial resources and adherence to laws, regulations and contractual obligations so as to accomplish strategic objectives for the period covered by this strategic plan. Diversify revenue sources to meet funding requirements for new programmes by 2018. Annually review the ICT strategy and plan and achieve 97% up time on network and application systems in each year covering the period of this strategic plan.

21. Beyond Boundaries 2015 - 2020 STRATEGIC OBJECTIVES Strategic Objective 789 Ensure Good Corporate Governance and efficient Board support Build and maintain institutional capacity Enhance public participation and stakeholder engagement Objective Statement To ensure maintenance of proper administrative systems and practice as well as the necessary support for governance structures and legislative compliance for the period covered by this strategic plan. Recruit, develop and retain a permanent staff compliment that will support the operational requirements of the Board for the period covered by this strategic plan. Strengthen public awareness and understanding of and participation in demarcation processes by creating communication and engagement platforms for the period covered by this strategic plan. Create a national footprint by establishing specific MDB mandate representation at provincial level for the period covered by this strategic plan. Organisational rebranding completed by 2018.

22. Beyond Boundaries EMERGING RISKS RiskMitigation Insufficient human and financial resources. Review organisational structure; Ensure optimal utilisation of existing personnel. Perceived inadequate public and stakeholder engagement in demarcation processes. Establishing provincial presence; More resources diverted towards enhancement of public engagement. Litigation in dispute of demarcation decisions. Enhance stakeholder engagement and public participation; Public education. Possible inability to deliver on MDB mandate in terms of strategic objectives due to depletion of accumulated reserves. Reimbursement from CoGTA; Exploring alternative revenue generating streams. 22

23. Beyond Boundaries KEY CHALLENGES Legislative constraints. Current resources are incompatible with organisational strategy and mandate. Perceived negative public perception due to lack of understanding of the Board’s mandate e.g. –Board being blamed for matters related to Provincial boundaries; –frequency in the delimitation of wards and numbers thereof. Lack of regional footprint creates disconnection with the public. 23

24. Beyond Boundaries NEW ORGANISATIONAL STRUCTURE In a bid to address and minimise demarcation protests the Municipal Demarcation Board has adopted a new organisational structure in line with its strategy; The new structure provides for a total of 53 positions: –43 are funded positions and 10 (new) are not funded. The MDB is looking at filling the positions incrementally over the MTEF period funds permitting. All the new positions are located in the core service areas to:- –enhance public education and engagement, –embark on regionalisation, –enhance research capacity; and –develop MDB as a spatial knowledge hub. The structure is unlikely to be implemented in its entirety within the MTEF due to budgetary constraints. 24

25. Beyond Boundaries 2016 to 2017 Annual Performance Plan 25

26. Beyond Boundaries PROGRAMMES SUPPORTING IMPLEMENTATION OF STRATEGY The implementation of the strategy is supported by four programmes as follows: Programme 1: Operations The programme gives effect to the institution’s legislative mandate of determining and re-determining municipal boundaries, appropriate categorisation of municipalities, advisory service on the alignment of service delivery boundaries to municipal boundaries and delimitation of municipal wards for local government elections. Programme 2: Research and Knowledge management The programme will conduct municipal capacity assessment to support decisions made by the Board on boundary demarcations. The programme included knowledge development and management to facilitate optimal decision making and to position the Board as a knowledge hub on all matters involving spatial planning and boundary demarcations. 26

27. Beyond Boundaries PROGRAMMES SUPPORTING IMPLEMENTATION OF STRATEGY Programme 3: Financial Management and Accounting This programme leads financial strategy of the institution and contributes toward resourcing of planned programmes. Focus over the next five years will be: –Optimising financial resources from traditional sources and to secure new opportunities; –Enhance accountability and reporting measures by delivering statutory reporting requirements and management information; –Contribute towards value for money through effective supply chain management services; –Compliance to PFMA legislation, regulations & MDB policies and procedures; –Information Technology. Programme 4: Corporate Services This programme provides corporate services to all the other programmes within the organisations including: –Human Capital & Administration; –Communications & Stakeholder Management; –Legal Services and Board Secretariat; 27

28. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 1 Strategic Objective 1 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Determination and re-determination of municipal boundaries Municipal boundaries determined and/or re- determined 1.1 Municipal outer boundary determination and re-determination policy and procedure approved Public participation processes on municipal boundary re-determinations conducted Final municipal boundary re- determinations published N/A Number of municipalities for which technical alignment of municipal boundaries are completed 1.2 Technical alignment of municipal boundaries for 213 municipalities completed N/A Develop a framework on the application of the demarcation criteria 1.3 Draft framework document on the application of the demarcation criteria developed N/A 28

29. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 1 Strategic Objective 2 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Delimit wards to facilitate local government elections The evaluation report on the efficiency and effectiveness of the 2014 to 2016 ward delimitation process is finalised by end of 3 rd quarter 2.1 An evaluation on the efficiency and effectiveness of the 2014 to 2016 ward delimitation process and produce a report by end of 3 rd quarter Review of the ward delimitation policy and development of operating procedures finalised Draft plan for the 2021 ward delimitation process finalised Commencement of the ward delimitation process Improved public access to geospatial information resources in line with the information and knowledge hub objective 2.2 Development and piloting of interactive online geospatial information centre Launch interactive online geospatial information centre online Maintenance and update of interactive online geospatial information centre 29

30. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 2 Strategic Objective 3 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Conduct capacity assessment of metropolitan, district and local municipalities Develop a revised municipal capacity assessment model 3.1 Develop and design a new and relevant capacity assessment model N/A Number of municipal capacity assessment reports N/A Conduct capacity assessments for 257 municipalities and produce reports N/A Strategic Objective 4 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Strengthen research and knowledge management to improve advisory services Conference on demarcation and spatial transformation agenda hosted 4.1 Host a conference on demarcation and spatial transformation agenda by end of 1 st quarter N/A 30

31. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 2 Strategic Objective 4 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Strengthen research and knowledge management to improve advisory services A virtual information portal on demarcation established 4.2 Online information repository on demarcation established by end of 2 nd quarter Update and maintain online information repository Number of municipalities evaluated to determine if they still meet demarcation objectives 4.3 Evaluation studies on 180 local municipalities to determine if they still meet demarcation objectives N/A Study on metropolitan system of governance conducted 4.4 Revised methodology on categorization of metropolitan municipalities, norms and standards developed N/A 31

32. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 2 Strategic Objective 4 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Strengthen research and knowledge management to improve advisory services Complete inputs into the amendments of applicable legislation and regulations affecting the work of the MDB 4.5 Inputs into the amendments of applicable legislation and regulations affecting the work of the MDB by end of 3 rd quarter N/A 32

33. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 3 Strategic Objective 5 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Ensure good financial planning and management Internal audit rating 5.1 Improve system of internal controls and an internal audit rating 2 Improve system of internal controls and an internal audit rating 1 (fully effective and adequate systems of internal control) Maintain system of internal controls and an internal audit rating 1 (fully effective and adequate systems of internal control) Opinion of the Auditor General on Annual Financial Statements 5.2 Clean audit with no Emphasis of matter Compliance with SCM prescripts 5.3 No irregular expenditure to be incurred 33

34. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 4 Strategic Objective 6 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Provide and maintain a stable and secure ICT environment Annual % network and application systems availability (System generated reports) 6.1 92% of 8,760 hours of network and application systems availability achieved over the period 97% of 8,760 hours of network and application systems availability achieved over the period 34

35. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 4 Strategic Objective 7 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Ensure good Corporate Governance and efficient Board support Monitoring and evaluation of legislative compliance by the organisation and Board. 7.1 Monitoring and evaluation of compliance with relevant legislations and provide support to ensure efficient operation of the Board Monitor compliance with relevant legislations and provide support to ensure efficient operation of the Board 7.2 N/AReview Combined assurance model and obtain Board approval N/A 35

36. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 4 Strategic Objective 8 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Build and maintain institutional capacity Percentage of positions filled as per approved organisational structure 8.1 92% occupancy rate of funded position over the period 92% occupancy rate of funded positions over the period Performance management system developed and implemented 8.2 Performance management system reviewed and implemented Implement a performance management system Continuously implement a credible performance management system Percentage of employees attending training as per the training and development strategy 8.3 50% of employees attending as per the training and development strategy 60% of employees attending as per the training and development strategy 65% of employees attending as per the training and development strategy 70% of employees attending as per the training and development strategy 36

37. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 4 Strategic Objective 8 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Build and maintain institutional capacity Remuneration strategy developed and implemented 8.4 Develop a remuneration strategy and framework Implement a remuneration strategy and framework Monitor the reviewed remuneration strategy and framework Develop a regionalisation operating model to ensure regional presence 8.5 Regionalisation operating model developed by end 2 nd quarter Regionalisation model implemented 37

38. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 4 Strategic Objective 9 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Public participation and stakeholder engagement Number of public awareness and stakeholder engagement activities 9.1 Four stakeholder engagement platforms per annum Six stakeholder engagement platforms per annum Eight stakeholder engagement platforms per annum Number of media and communication initiatives implemented 9.2 Seven media and communication initiatives implemented Eight media and communication initiatives implemented Programme on public participation in municipal boundary redetermination and ward delimitation developed 9.3 Framework for public participation in municipal boundary redetermination and ward delimitation developed N/A 38

39. Beyond Boundaries MEDIUM TERM PERFORMANCE TARGETS Programme 4 Strategic Objective 9 Performance indicator Medium Term Target 2016/172017/182018/192019/20 Public participation and stakeholder engagement Number of strategic partnerships established with local and/or international organisations 9.4 Two strategic partnerships established with local and/or international organisations One strategic partnership established with local and/or international organisation N/A 39

40. Beyond Boundaries Medium Term Expenditure Framework 40

41. Beyond Boundaries MTEF BUDGET 41 DESCRIPTION ACTUAL BUDGET 2014/152015/162016/172017/182018/19 R'000 Government Grant44 23045 79348 220 50 63153 568 Additional Government Grant - -10 000 - - Other Income 942 494 500 520 530 Accumulated Reserves -- - - - Total Revenue45 17246 28758 720 51 151 54 098 Compensation of Employees 20 082 20 83528 358 30 35432 392 Goods and Services12 53127 67314 078 8 4618 840 Rental of Building 3 667 3 8304 131 Capacity Assessments - - 1 500 2 000 Audit Fees2 055 1 342 1 6111 503 Board Fees 2 670 3 182 2 5502 060 2 260 Legal Fees 5 007 5 705 1 5001 000 Stakeholder Management 2 734535 3 9851 152 Capital Expenditure 3 678664 1 007 990 820 Total Expenditure 52 42463 76658 72051 151 54 098 Surplus/(Deficit) (7 252)(17 479) - - -

42. Beyond Boundaries CONCLUDING REMARKS The Committee’s continued oversight and support are highly appreciated. The Board needs additional resources to ensure successful implementation of the strategic plan. To this end partnerships are being forged with research and academic institutions in order to minimise cost of research and knowledge development. The Board is looking forward to an opportunity to engage with the Select Committee in its participation in the upcoming MDB conference in June 2016. 42

43. Beyond Boundaries CONTACT DETAILS Chief Executive Officer ceo@demarcation.org.za Tel: 012-342 2481 www.demarcation.org.za 43