1. National Lotteries Commission Presentation to Sports Portfolio Committee ________________________________________ 26 June 2017

2. OVERVIEW Introduction of Delegation New Board Overview of Sports DA
Challenges with Amended Legislation
Legislative Framework
NLC Strategic Priorities
NLC Funding Structure
Sector Budgets
NLC 2018 Priorities (Sports)
Other 2

3. Prof NA Nevhutanda NLC Chairman3

4. NLC DELEGATION Prof Nevhutanda (Chairman)
Ms Thabang Mampane (Commissioner)
Mr Phillemon Letwaba (Acting Executive Grant Funding)
Mr Mveleli Edwin Ncula (Sports & Recreation Distributing Agency Chairman)
Ms Nompumelelo Nene (Company Secretary) 4

5. NEW NLC BOARD APPOINTED
Professor Ntshengedzeni Alfred Nevhutanda (Chairman)
Adv William Elias Huma
Ms Sophie Thabang “Peppy” Kekana
Ms Doris Dondur
Dr Muthuhadini Alfred Madzivhandila
Mr Yaswant Narotham Gordhan
Ms Zandile Nkonyane (Ministers Nominee) 5

6. SPORTS DISTRIBUTING AGENCY
Section 26B(3) of the amended legislation states that:
“members of the distributing agency shall be appointed for a period of five years, which may be renewed only once, to serve on a full-time basis as members of the distributing agency and staff members of the Commission responsible for adjudication of applications for grants or recommendations of funding of worthy good causes received from the Commission”
To date only the Charities DA & Arts DA have been appointed as full-time members.
Interviews for the Sports & Recreation DA members have already been completed and the process is currently with the dti for finalisation. 6

7. CHALLENGES WITH THE AMENDED LEGISLATION
Cooling off period & the impact on organisations such as SASCOC;
Funding Activities outside RSA;
Funding for Impact (NLC’s Strategic Intent);
National Consultative Indaba (scheduled for September 2017) to focus on beneficiary challenges;
Equitable Funding skewed to benefit developed organisations 7

8. Ms Thabang Mampane Commissioner8

9. LEGISLATIVE FRAMEWORK
NLC was established in terms of 2 of Act 32 of 2013 (as amended)
Amongst the five key functions of the NLC in terms of S2(A) of the Act
“The commission may, upon request by the Minister, board or on its own initiative in consultation with the board, conduct research on worthy causes that may be funded without lodging an application as prescribed by the act”
(Proactive funding),
and
“The commission may, upon request by the Minister, board or on its own initiative in consultation with the board, invite applications for grants from worthy causes in prescribed manner”
( Application based open call system) 9

10. FUNDING MODEL 10

11. AMENDED REGULATIONS
Regulations relating to allocation of money in the NLDTF
Charities – 47%
Sports – 28%
Arts – 23%
Misc – 2%
Differentiated grants;
Small<500k
Medium>500k<5m
Large grants> 5m
Multi year funding
Cooling-off period
Direction for distributing agencies in determining the distribution of funds from the NLDTF
Setting of caps
Education and awareness
Capacity building
Full time distributing agency
150 days target (from date of submission to finalisation)
Reviews to be finalised within 90 days 11

12. Catalyst for social upliftment
VISION
Catalyst for social upliftment
 MISSION
Regulate all lotteries and sports pools with integrity and ensure the protection of all participants
Maximise revenue for good causes in a responsible manner
Distribute funds equitably and expeditiously
ULTIMATE OUTCOMES
Competent, capable and relevant National Lottery built
Compliant and regulated Lottery industry receptive to the NLC mandate
Fair and equitable distribution of grant funding
STRATEGIC OBJECTIVES
Effective and efficient administration of the NLC
Financial Sustainability, control and discipline in line with applicable legislation
Initiatives geared towards ensuring compliance with the Lotteries Act
Fair and Equitable grant allocations
PERFORMANCE INDICATORS, BASELINE AND TARGETS
Knowledge Management
Education and Awareness Campaigns
Integrated Enterprise Wide Architecture
Corporate Governance
NLDTF Disbursements
NLDTF Allocations
Implementation of the Investment Strategy
Localised Procurement
Combatting illegal lotteries
Monitoring the performance of the National
Lottery Operator against the licence
conditions
3. Regulation of illegal lotteries
150 days
5% distribution across all provinces
Site Visits
Impact evaluation studies in 5 provinces 12

13. Acting Executive Grant Funding
Mr Phillemon Letwaba
Acting Executive Grant Funding 13

14. REVENUE COLLECTION AND SECTOR ALLOCATION.
National Lotteries Commission
Applications
Quarterly Transfer {section 23 (c)} (4%)
Quarterly Interest
Unclaimed and expired prize money
NPO’s
Transfer for operational costs {Section 26(2) and Section 34}
Weekly Transfer {section 14 (2)(e)} - (78%)
Ithuba (Lottery Operator)
Investments
Share of game sales
Prize commitments
Surplus funds {section 25(1)}
National Lottery Distribution Trust Fund
Interest payments {section 23 (b)} (18%)
Arts, Culture and Heritage (23%)
Charities (47%)
Sports (28%)
Miscellaneous (2%)
Distributions {section 26(3)}
Distributions {section 26(3)}
NPO’s 14

15. GRANTS PERFORMANCE PER PROVINCE15

16. COMPARISON ALLOCATION IN FY
2016/17
Percentage
Budget
Actuals
Disbursed
Arts, Culture and Heritage
23%
Charities
47%
Miscellaneous 2%
Sports and Recreation
28%
Totals
100% 16

17. COMPARISON ALLOCATION IN FY
Financial Year
2015/2016
2016/2017
Allocations R R
Payments R R 17

18. ALLOCATIONS AND PAYMENT FOR SPORTS FY 16/17
Province
Allocated
Paid
Eastern Cape R R
Free State R R
Gauteng R R
Kwazulu Natal R R
Limpopo R R
Mpumalanga R R
North West R R
Northern Cape R R
Western Cape R R
Total R R 18

19. 2016/17 GRANT ALLOCATION SUMMARY BY TYPE OF INVESTMENTS19

20. SPORTS AND RECREATION PRIORITIES 2017/18
Organisations
Programmes
National Sports Federations
Transformation
International participation
Domestic participation
Capacity Building and empowerment
Provincial Federations
Transformation and development
Training and development of coaches of Lotto funded clubs and schools(2015/16)
Affiliates to Provincial federations
Participations in the Leagues
Sports equipment
Training and development
Sports Clubs and football academies
New basic sports facilities
Upgrading of existing facilities
Participation in the league
Public schools
New Basic equipment, apparels and upgrading of existing facilities for Quintile 1,2,3
Sports NGO(NPO or NPC)
Implement sports and recreation-based programmes in communities 20

21. CAPACITY BUILDING
NLC has developed a strategy on capacitating emerging organisations on:
Governance
Finance
Reporting 21

22. EDUCATION AND AWARENESS
Coordinated at Provincial Level
Addresses specific needs based on target audience
Create awareness on Fraudulent activities and consultants
Awareness on how to access funds and compliance with required documents 22

23. MONITORING AND EVALUATION
Dedicated Team of Monitoring and evaluation per province
Monitoring of infrastructure project by panel of engineers
Conducting of site visit for programme and financial monitoring
Ensure reporting is done as per the signed Grant Agreement 23

24. Thank you 24