1. 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

2. TABLE OF CONTENTS 1. 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 2

3. 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 3

4. 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 4

5. 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 5

6. 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 6

7. 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 7

8. KEY ACHIEVEMENTS FOR STRATEGIC GOAL ONE Strategic Goal One: Promote Sustainable Development OutputsAchievements for 2009/10 Food Security Projects Funded 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 8

9. KEY ACHIEVEMENTS FOR STRATEGIC GOAL ONE -- conti Strategic Goal One: Promote Sustainable Development OutputsAchievements for 2009/10 Targeted Agricultural and Agri-business projects Identified and Funded 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 9

10. KEY ACHIEVEMENTS FOR THE STRATEGIC GOAL ONE -- conti Provincial Grant Allocation 2009/10 Province Poverty Index Grant AllocationWriteback Allocation Total Approved Amount per Province Total number approved projects Eastern Cape20.80 14 839 438 2 669 435 14 137 415 9 Free State7.10 7 041 347 911 202 7 446 406 7 Gauteng10.50 8 976 639 1 347 552 9 630 126 8 Kwa-Zulu Natal22.60 15 864 005 2 900 444 19 274 263 10 Limpopo15.50 11 879 579 2 002 077 14 774 746 11 Mpumalanga7.90 7 496 710 1 013 872 7 852 903 6 Northern Cape1.80 4 024 567 231 009 5 630 955 8 North West Province9.30 8 293 595 1 193 546 8 304 394 8 Western Cape4.50 5 561 417 577 522 7 619 306 9 National 332 273 1 83 977 297 12 846 658 95 002 78777 10

11. KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO Strategic Goal Two Promote Organisational sustainability, Development practice and excellence OutputsAchievements for 2009/10 R50 million by 2012 in kind and cash, in addition to government grant 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 11

12. Strategic Goal Two: Promote organisational sustainability, development practice and excellence OutputsAchievements for 2009/10 Repositioning of the Organisation An integrated marketing and communications strategy aimed at improving the image of the organisation was revised and approved during the 09/10 financial year KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO -- conti 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 12

13. KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO -- conti Strategic Goal Two: Promote organisational sustainability, development practice and excellence OutputsAchievements 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 Cost reduction strategy drafted 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 Awaiting the outcome and the finalisation of the business process optimisation. The structure design approach and methodology developed and approved 13

14. KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO -- conti Strategic Goal Two: Promote organisational sustainability, development practice and excellence OutputsAchievement for 2009/10 Best Practice Policies, procedures and unit strategies 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 14

15. KEY ACHIEVEMENTS FOR STRATEGIC GOAL TWO -- conti Strategic Goal Two: Promote organisational sustainability, development practice and excellence OutputsAchievements for 2009/10 Unit Strategies aligned to NDA strategy 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 valuesValues have been incorporated in the NDA performance management system 15

16. 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 OutputsAchievements for 2009/10 Sector relevant and recognised plan for dialogueDraft 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 16

17. KEY ACHIEVEMENTS FOR STRATEGIC GOAL FOUR Strategic Goal Four: Facilitate research that informs grant-funding decisions, procedures and development policy OutputsAchievements for 2009/10 Functional DatabaseThe 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 projectsImpact performance projects visits were done in preparation for the 2010/2011 impact studies Sector-specific studiesNational 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 17

18. CHALLENGES & INTERVENTION STRATEGY -- conti ChallengesIntervention Plan Limited financial resourcesResource Mobilisation Inadequate skills and competencies of NDA staff to provide effective support to funded projects Ongoing skills training on financial management and alternative 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

19. CHALLENGES & INTERVENTION STRATEGY -- conti ChallengesIntervention Plan Limited management, institutional and technical capacity of funded projects 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 19

20. CHALLENGES & INTERVENTION STRATEGY -- conti ChallengesIntervention Plan Inadequate performance monitoring and evaluation of funded projects 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) 20

21. 21 Summarised Statement of Financial Performance for the year ended 31 March 2010 20102009 RR Revenue161 022 034163 449 382 Grant from Government144 782 000136 267 000 Interest & Other Income16 240 03427 182 382 Expenses162 298 183195 428 909 Mandate expenses 89 643 788 120130910 Committed poverty eradication projects 94 689 034 114 236 418 Project Write Backs (12 361 533) (2 818 048) Direct project costs 7 316 287 8 712 540 Administration expenses 72 654 395 75 297 999 Staff costs 46 396 708 43 292 915 Operating leases 5 246 543 5 107 913 Accommodation and travel 4 732 224 3 120 987 Board fees 1 800 038 1 269 137 Consulting and professional fees 2 341 546 5 240 474 Depreciation and amortisation 1 534 898 1 237 816 IT Communications costs 1 770 069 1 376 173 Marketing and communication costs 1 089 994 1 216 973 Office relocation costs 0 2 343 266 Other Expenditure 7 742 375 11 092 345 Net deficit for the year (1 276 149) (31 979 527) FINANCIAL REPORT: 2009/10

22. Statement of Financial Position As at 31 March 2010 20102009 Assets RR Current assets Cash and Bank balances 216 141 107246 519 366 Exchange Receivables 1 299 6042 049 660 217 440 711248 569 026 Non-current assets Property, Plant and Equipment 3 772 1333 897 568 Intangible Asset 1 045 3021 434 122 4 817 4335 331 689 Total assets 222 258 144253 900 715 Liabilities Current liabilities Payables and Provisions 4 4310916 915 583 Short-term employee benefits 3 108 1392 932 697 Provision for Committed projects 150 105 053179 641 909 European Union 22 512 06521 668 312 180 156 348211 158 501 Net Assets 42 101 79642 742 215 IDT establishment fund 40 956 39840 956 399 Accumulated surplus 1 145 3971 785 816 Total Liabilities & Net Assets 222 258 144253 900 715 FINANCIAL REPORT: 2009/10---Conti 22

23. 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 ANALYSIS OF FINANCIAL PERFORMANCE 23

24. 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 24

25. 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 25

26. Thank You 26