1. NATIONAL LOTTERIES COMMISSION (NLC) Application Process By: Ms. M Letoaba

2. WHO’S WHO? Minister of Trade & Industry Awards operator license Issues Regulations Appoints DA members National Lotteries Commission National Lottery Distribution Trust Fund Regulator National Lottery operated by Ithuba Other Lotteries Trustee to NLDTF DA Arts, Culture & National Heritage 23% DA Charities 47% DA Sport 28% DA Miscellaneous Purposes 2% Distribution Process applications and make payments The Distributing Agencies (DAs) adjudicate applications and make grants in line with criteria

3. GRANT FUNDING PROCESS 3

4. FUNDING GUIDELINES AND CRITERIA

5. Applications Grant CategoryValue of grants to be applied for: Prescribed application form to be used SmallNot more than R500 000FORM 2010/2 LargeR5 million and aboveFORM 2010/1 MediumR500 001– R5 millionFORM 2010/1

6. Non Profit Organisations (NPO) Public Benefit Trusts Non Profit Companies (NPC) Section 21 Companies NB: Applications will be considered from registered or affiliated organisations that submit all the required documents and information as outlined in the Guidelines. Who is eligible for funding?

7. 7 The following MANDATORY documents must be submitted together with the fully completed application form, FORM 2010/2: a) Founding documents (this requirement is applicable to organisations that have not previously been funded by the NLDTF or if the objectives of the organization have since changed.) Constitution / Trust Deed / Memorandum and Articles of Association / Memorandum of Incorporation. N.B The constitution must have a dissolution clause that is in line with the regulations. Institutions established by an Act of Parliament must only cite the enabling Act b) Proof of registration for non-profit organisations, non-profit company and public benefit trusts/ Section 21 Companies. Letter of Affiliation from the relevant Sports Body. c) Detailed Project Business Plan, Budget and Project Motivation. (Specific line items with unit cost, quantities, total cost per item) d) The Financial Records comprising of the following: Statement of Assets (Land, Buildings, Vehicles, Cash, etc.) & Liabilities (Loans, Bank Overdraft, Creditors, etc.) for minimum of 3 months; Statement of Income & Expenses for minimum of 3 months; and Bank Statements for the most recent 3 months. e) Any additional information required in the guidelines Requirements for SMALL GRANTS: Up to R500 000.00

8. 8 Requirements for: MEDIUM GRANTS From R 500 001, but not exceeding R5m LARGE GRANTS From R 5 000 000 and above. The following MANDATORY documents must be submitted together with the fully completed application form, FORM 2010/1. a) Founding documents (this requirement is applicable to organisations that have not previously been funded by the NLDTF or if the objectives of the organisation have since changed.) Constitution / Memorandum and Articles of Association / Memorandum of Incorporation / Trust Deed b) ) Proof of registration for non-profit organisations, NPO Registration certificate/ Section 21 Companies. Letter of Affiliation from the relevant Sports Body(Sports Sector). c) Detailed Project Business Plan, Budget and Project Motivation (Specific line items with unit cost, quantities, total cost per item). Please use the provided template d) Most recent Annual financial statements of the organisation: - For the most recent financial year, signed and dated by a registered and independent Accounting Officer or an Auditor, for organisations that have previously received funding from the NLDTF. For the two(2) most recent consecutive financial years, signed and dated by a registered and independent Accounting Officer or an Auditor, in the case of organisations that have not been previously funded by the NLDTF. e) Signed and dated Auditor’s or Accounting Officer’s Report f) Any additional information required in the guidelines

9. Annual Financial Statements (AFS) Annual Financial Statements must include the following: Detailed Income & Expenditure Statement / Income Statement Statement of assets and liabilities / Balance Sheet Notes to the financial statements A signed and dated report from the Accounting Officer/ Auditor - on their company’s letterhead. The Annual financial statements must be for two(2) consecutive years (e.g. 2013/2014 and 2014/2015). In other words, financial statements for two financial years, following each other without interruption. The Annual Financial Statements MUST be signed and dated by a registered, independent Accounting Officer or Auditor in line with the requirements of the professional body with which he/she is registered. These will be verified by the NLC. Please see list of the recognised Professional Accounting and Auditing bodies below. 9

10. Annual Financial Statements (cont) IMPORTANT INFORMATION TO NOTE ON FINANCIAL STATEMENTS The Annual Financial Statements must not be submitted as part of an Annual Report. Annual Reports are not required, and if submitted, will not be considered. Please make it a point that you submit only the required annual financial statements. The Accounting Officer/Auditor must be registered, and in good standing, with one of the Accounting or Auditing bodies below. Organisations must request proof of such registration with these bodies from their Accounting Officers/Auditors before they appoint the accounting officer/auditor to prepare their annual financial statements. Accounting Officer / Auditor must be independent and cannot be a member or an employee of the organisation. Annual Financial statements compiled by a student accounting officer, as well as employees of accounting firms not authorised to compile and sign financial statements will not be considered. Draft annual financial statements are not accepted. Unsigned and undated Accounting Officer / Auditor report will not be accepted Unsigned financial statements will not be accepted. 10

11. Annual Financial Statements (AFS) 11 Auditors and Accounting Officers must provide valid registration with one of the following recognized professional bodies: IRBA (Independent Regulators Board for Auditors) SAICA (South African Institute of Chartered Accountants) SAIPA (South African Institute of Professional Accountants) SAIBA (South African Institute of Business Accountants) CSSA (Chartered Secretaries of Southern Africa) CIMA (Chartered Institute of Management Accountants) ACCA (Association of Certified Chartered Accountants) IAC (Institute of Accounting and Commerce) CIBM (Chartered Institute of Business Management SAIGA (The South African Institute of Government Auditors)

12. Declaration on last page of application must have full name of person submitting application. Application must be signed by 1 of two contact persons – must hold SA ID Organisation with same/one registration certificate for all its projects must submit one application – not applicable to conduits. Organisation applying for more than one project must submit one consolidated budget. Submit certified copies of ID documents of 2 contact persons and management committee members – as requested on p.2 of application form. Referees in section D of application form must be independent from the organisation (e.g. councillor, traditional leader, social worker). Names and positions of 3 bank signatories must be provided – C2 of application form. Application requirements

13. Registered name of organisation must be the same on all supporting documents such as: – Prescribed application forms – Registration certificate / proof of registration – Founding documents (constitution, Trust deed, Memorandum and Articles of Association) – Bank account – Annual Financial Statements If name has changed of organisation – submit signed and approved copy of special resolution, amended constitution, minutes of the meeting where name change decision was taken or change of name certificate that confirms name change of organisation Application requirements cont.

14. Quotations for the equipment required must be submitted Organisations that received funding previously from NLDTF must ensure that all progress and final reports are submitted. Failure to comply will result in application not being considered. 14 Additional required documents

15. Budget Use format of templates provided (application form, budget & project business plan) Motivate line items Separate budgets must be submitted for different projects/programmes/offices applied – and one consolidated budget Total amount requested in business plan must correspond with amount stated in B2 of application form

16. THE FOLLOWING APPLICATIONS WILL NOT BE CONSIDERED: Applications from Family trusts, Organisations established for profit or in the furtherance of objectives of a for-profit organisation. Applications NOT on the prescribed Application Forms 2010/1 or 2010/2. Applications from applicants that have not submitted all required Progress and Final Reports on any previous NLDTF funding. Faxed, emailed applications, as well as applications on CD. Applications from organisations whose previous projects were declined, cancelled or withdrawn due to fraud, corruption and other maladministration will not be considered. 16

17. Challenges during the application process Unauthorised agents. Incomplete/high number of non- compliant applications. Repeat declines/non-compliant for the same reasons. Providing too much information with the application pack. Submission of fraudulent Annual Financial Statements by some organisations. Last day submission of applications. 17

18. CONTACT US NLC APPLICATIONS

19. 19 ProvincialOfficesProvincialOffices Gauteng333 Grosvenor Street, Block D Hadfield Gardens, Hatfield 0833 Mr. Katiso Molefe(012)4321300

20. 20 Thank you www.nlcsa.org.za