1. NATIONAL LOTTERIES BOARD Presentation to Portfolio Committee on Arts & Culture

2. Presentation Outline  Regulatory Framework  Governance Structure  Functions of the Board  Functions of the Distributing Agencies  Strategic Objectives of the NLB  Strategic Objectives of ACENH Funding  Beneficiary Categories  Strategic Focus  Interventions: Equitable Distribution  Impact of Funding  Allocations per Province & Sector  Questions/Discussions 2

3. Regulatory Framework  The National Lotteries Act establishes the National Lotteries Board  Sets up the process for awarding the licence  Establishes the National Lottery Distribution Trust Fund (NLDTF)  Sets up the process of Distribution  Sets up process for Monitoring & Regulating  Private & Society Lotteries  Promotional Competitions 3

4. Gidani NLB NLDTF DA Charities DA Art & Culture DA Sport DA RDP DA Misc 28% 45% 22% 5% 0% Weekly transfer Central Applications Office REGULATOR Monitors activities through Licence NGOs CBOs Applications Governance..Structure Operates the National Lottery 4

5. Functions of the Board  Advise the Minister  on the issuing of Licence/s  on the percentages allocated to good causes  on the efficacy of Legislation related to Lotteries  Protection of Players  Maximize proceeds to good causes  Administer NLDTF  Monitor & Regulate Other Lotteries  Manage the Central Applications Office 5

6. Functions of Distributing Agencies  Appointed by the Minister of Trade & Industry for a period of 5 yrs  Develop criteria and guidelines for allocation of funding as directed by the Minister  Adjudicate applications for funding  Review project progress-and site visit reports 6

7. Strategic Objectives of the NLB 7  Improve effectiveness of funding from the NLDTF  Strengthen Compliance and Regulation  Explore Alternative Revenue Streams for NLDTF  Improve the Image and Publicity of the Board and NLDTF  Improve Governance

8. Strategic Objectives of ACENHDA  support for initiatives designed to protect and promote traditional knowledge and cultural expressions  promotional work of arts and craft, literature, theatre, music, dance and festivals.  development and preservation of cultural heritage and environment. 8

9. Beneficiary Categories 9  NGO’s  Section 21 Companies  Non-Profit Trusts  PBO’s / CBO’s  Universities  Parastatals  Municipalities  Schools

10. Strategic Focus 10  Disabled people and women: the sector has identified this as a major area that needs funding, given inter alia the fact that women and the disabled have contributed in the sector equally as their counterparts over the past few years  Equitable distribution: Attempts to ensure 50/50 rural/urban split have been intensified-hampered by large number of non-compliant applications in rural areas

11. Interventions to foster equitable distribution 11  National Road shows [capacity building workshops]  Regional Offices roll-out  Partnerships  New Regulations published in July 2010 which prescribes minimum allocation of 50% to identified priority areas [with big emphasis on rural areas ]

12. Impact of Funding 12  Total allocation to date for 2010/2011: R766,941,172.94  Disbursed to date (2010-2011) : R875,330,444.79  Most of the funding still goes to what was previously known as the hubs of Arts and Culture as Gauteng, Western Cape and KZN.  With the latest NLDTF regulations of 20 July 2010 the DA is putting more effort to fund provinces with less allocations  Legacy project for 2010 FIFA World Cup have been funded up to R166,960,959.77 for projects within the Sector

13. Allocations: 1Apr ‘10- 3 Feb ‘11 Province Provincial Spread (%)Provincial Spread (R) Eastern Cape7%R51,644,912.89 Free State1%R 8,037,469.28 Gauteng34%R259,445,159.92 KZN Natal11%R 86,800,830.79 Limpopo2%R 15,628,181.00 Mpumalanga3%R 26,808,666.40 Northern Cape0.5%R 4,483,128.11 North West0.4%R 2,778,679.70 Western Cape20%R 60,346,459.00 Other calls22%166,960,959.77 Total100%R 766,941,172.94 13

14. Challenges..distribution of funds  Equitable distribution  First come, First served [adjudication]  High decline rate  Lack of/Inadequate impact measurement  Operational model  Turnaround times 14

15. QUESTIONS/DISCUSSION 15