2. 2 National Development Agency Presentation to The Social Development Portfolio Committee Parliament, Cape Town Wednesday, 19 October 2005

3. 3 NDA Mandate 1.The Primary mandate of the NDA is to contribute towards the eradication of poverty and its causes by granting funds to civil society organisations for the purposes of a) carrying out projects or programmes aimed at meeting development needs of poor communities; and b) strengthening the institutional capacity of other civil society organisations involved in direct service provision to poor communities 2.The secondary objects of the NDA are:- a) to promote – i) consultation, dialogue and sharing of development experience betweencivil society organisations and relevant organs of state; and ii) debate on development policy; and b) to undertake research and publication aimed at providing the basis for development policy.

4. 4 NDA definition of poverty The NDA definition of poverty extends to the following variables: Income Employment Education Infrastructure Assets Access to social services

5. 5 PMG note: The following maps are not include, please email info@pmg.org.za if in need of:.Poverty rate 2001: South Africa Municipality.Total Grants – NDA Project South Africa.Total Grants – Agriculture South Africa.Total Expenditure – Economic Development South Africa.Total Expenditure on Health South Africa.Total Expenditure on Education South Africa THE MAPS

6. 6 Key Achievements And Highlights 1 April 2004 – 31 March 2005  In accordance with the strategic plan, the NDA gave support to integrated and sustainable programmes enhancing food security in identified poverty pockets.  In this regard, the NDA initiated a Request for Proposals Programme. This programme, together with the other NDA funded programmes resulted in R92,634,000 being committed and R62,712,000 being disbursed to projects in this year  Also in accordance with the strategic plan, the NDA facilitated participation of formerly disadvantaged groups in the mainstream economy by supporting 6 SMME projects per province  EU support - as shown on separate slide  NDA received an unqualified audit opinion with emphasis of matters

7. 7 SectorNumber of Organisations Civic and advocacy6,800 Culture and recreation20,587 Development and housing20,382 Education and research5,730 Environment3,396 Health6,517 Religion11,706 Social services22,755 Professional associations525 Philanthropy310 International activities212 Total98 920 Size of non-profit sector in South Africa ______________________________________________

8. 8 EU support to the NDA  Received R64m for direct grant funding  Committed R60.7m to projects  Eastern Cape, R26.8m – 44%,  KwaZulu Natal, R22.6m – 37%  Limpopo, R11.3m – 19%  R49.8m disbursed to EU funded projects able to produce acceptable financial reports.

9. 9 EU support to the NDA  External evaluation report on the EU funded projects stated:  It can be concluded that the impact of the disbursed funds on beneficiaries and their target communities has been beneficial, indeed, effective,  Overall, the distribution of grant commitments, both by number of grants and value of grant commitments made has been effectively applied across all provinces.

10. 10 NDA FINANCIALS ______________________________________________ NDA received an unqualified audit opinion with emphasis of matters on the following: Write back of projects previously committed Budget for 2005/6 Forensic investigation Key reconciliations Payroll reconciliations Project Tracking System

11. 11 NDA FINANCIALS: Management Progress to Date MatterManagement Progress Write back of projects previously committed Projects to be written off, were confirmed by Project Managers. Final approval for write back will be sought from the Board Budget for 2005/6 Budget was submitted in time Forensic investigation This issue is dealt with elsewhere in our presentation Key reconciliations CFO has implemented new processes of reviewing & signing all reconciliations as required by good practice Fixed assets – the fixed assets module is being reconfigured Project Tracking System Management is using Great Plains for financial reporting purposes

12. 12 INCOME & EXPENDITURE ______________________________________________ INCOME125 587 590 Grant109 418 000 Interest 30 253 522 Other 1 957 205 EXPENDITURE156 227 498 Direct Funding 90 180 382 Programme Support 7 265 356 Staff cost 31 005 865 Project Implementation component 12 728 889 Support component 18 276 974 Administration cost 27 775 895 Net (deficit)/surplus for the year 14 851 331

13. 13 GRANT TRENDS/ALLOCATIONS TO THE NDA ______________________________________________ 2001/22002/32003/42004/52005/62006/72007/8 R’m% % % % % % % Grant92.796.74%103.27%1096%121.511%128.76%135.25%

14. 14 Human Resources Statistics CategoryNo of Employees Employees per population group African101 Coloured11 White5 Asian4 Gender of Employees Male50 Female71

15. 15 BALANCE SHEET ASSETS Property, plant and equipment2 063 030 Current assets259 894 616 Cash and cash equivalents - Government241 347 911 Cash and cash equivalents – European 15 066 058 Accounts receivable 3 480 647 TOTAL ASSETS261 957 646 Funds & Liabilities100 903 539 Funds 46 562 054 Development Fund 49 842 188 Projects fund 4 499 297 Current liabilities161 054 107 Accounts payable 5 653 733 Committed projects 150 824 400 Interest payable – European Community 4 575 974

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17. 17 BUDGET EXECUTIVE SUMMARY ______________________________________________ Core MandateR 83 700 50057% Programme SupportR 21 484 51315% Admin CostR 39 584 98728% TotalR144 770 000100%

18. 18 Goals Identified For 2005/6 _____________________________________________ The following strategies and plans are being developed: A revised overall NDA strategic plan that is aligned to national development priorities in relation to poverty eradication/alleviation A coherent Poverty Eradication Strategy that informs national policy on poverty and its causes A comprehensive resource mobilisation strategy and plan that will enable the NDA to source resources for poverty alleviation A revised integrated and holistic human resources strategy/plan that is aligned and linked to organisation strategic priorities A revised decentralisation strategy and plan for improved service delivery A stakeholder Management strategy and a plan to build appropriate partnerships

19. 19 Goals Identified For 2005/6……… ______________________________________________ Improved overall organisational stability is to be achieved through the possible elimination, mitigation and management of all internal and external organisational risks Improved position of the NDA as a stable, critical and relevant partner to Government and Civil Society in poverty eradication Increase the amount of grant funding that is achieved and improve turn-around time for project payments Secure financial support from EC delegation for further funding of NDA projects Improved compliance with all Corporate Governance requirements is to be achieved The NDA being committed to Millennium Development Goals as part of creating a global community and humanity free from poverty

20. 20 Goals Identified For 2005/6……… ______________________________________________ Improved Governance frameworks and processes for Board and management structures are to be implemented Improved processes and systems to address NDA business requirements are to be introduced and implemented A thorough Business Process assessment will be carried out and this will inform the structure that the NDA requires to best deliver on its mandate A competency assessment of all staff will be carried out and the results thereof will be used in determining where staff are best suited in the organisation in relation to the skills they possess Finalise the development of a national database for Civil Society and the Faith Based Organisation’s Fund Enhance the involvement of Traditional Leadership in poverty eradication

21. 21 Replies to Questions asked at the meeting held on 08 March 2005  The disciplinary hearing pertaining to the charges laid against the then CEO was completed in December 2004. Whilst this was in progress the former CEO resigned. The then CEO has brought a motion in the High Court against the Minister and the NDA, seeking a ruling from the High Court to the effect that the cautionary suspension order issued by the Minister and the disciplinary hearing and the findings thereof be set aside. The motion is awaiting a hearing from the High Court.  The NDA has negotiated an amicable termination of the COO’s employment agreement, in terms of which the COO has resigned from the NDA  Forensic Report: As the matter between Mr. Mthembu and the NDA has not been finalised, it is not possible to make any part of the forensic report available to the public.

22. 22 Replies to Questions asked at the meeting held on 08 March 2005……….  Fire: The damage to the NDA building which was caused by fire, has been repaired. A forensic investigation into the cause of the fire has been undertaken. The results have not yet been released by the Insurance Company despite the NDA making several written requests to the Insurance Company.  The Board has mandated the CEO to deal with certain staff matters including the appointment of certain staff members without proper procedures being followed and the CEO is currently applying his mind to these matters.

23. Questions and Comments Thank you for your attention