Africa Institute of South Africa Presentation to Science and Technology Portfolio Committee, Parliament, Cape Town 19 October 2010 By Dr Matlou – Chief Executive Officer
Purpose of the Presentation To present on the AISA Annual Report and Audited Financial Statements 2009-2010.
AISA’s Vision and Mission • Vision • An indispensable African voice on African Affairs. • Mission • To produce relevant research products aimed at informing sustainable political and socio-economic development in Africa. • Position Statement • Development Through Knowledge • Brand Promise • Africa's knowledge resource
AISA’s Values • AISA’s Corporate Values are entrenched in the acronym PRIDE: • Participation; • Responsibility; • Integrity; • Development; and • Excellence
Introduction • Policy and commitment : • AISA is an organ of state governed mainly by: • AISA Act (Act 68 of 2001) • Public Finance Management Act (Act 1 of 1999) • AISA’s Current Research Agenda • African Continental Integration- 2008-2011
AISA’s Mandate • AISA’s mandate is derived from the AISA act (Act 68 of 2001), which establishes it as a statutory body aimed to: • Provide research and policy development support in its pursuit of programmes that contribute to the development of the African continent; • Conduct research and embark on training programmes that foster continental patriotism and that promote increased awareness and understanding of the African continent among the peoples of South Africa and across the globe; and • Establish and participate in and maintain networks in Africa and globally which will contribute to the peace development and prosperity of the continent.
AISA: Objectives The institute pursues three objectives: • Promote knowledge and understanding of African affairs through leading social scientists acting in concert and across various disciplines and through training and education on African affairs. • Collect, process and disseminate information on African Affairs, give effective advice and facilitate appropriate action in relation to the collective needs, opportunities and challenges of the continent, and • Promote awareness and consciousness of Africa at the grassroots level.
Divisions within AISA • Research: organised in 5 units, namely; • Peace and Security • Sustainable Development • Governance and democracy • Science and Technology, and • Policy Unit • Publications • Library and Documentation • Outreach and International Liaison • Corporate Affairs • Finance and Administration • Human Resources
AISA Management • Dr Matlotleng Matlou – Chief Executive Officer • Dr. Monica Juma – Executive Director Research • Dr. Thokozani Simelane – Acting Director Research • Ms. Segametsi Molawa – Director LDS • Mr. Solani Ngobeni – Director Publications • Ms. Elsie Maritz – CFO • Ms. Ingrid Canham – HR Manager • Ms Nadema Jainoo - Corporate Affairs Manager
AISA 2009-2010 AISA’S ACHIEVEMENTS IN DELIVERING ON ITS MANDATE
i. Governance and Democracy Seeks to promote and encourage the institutionalization and entrenchment of democracy and governance fundamentals as a basis for integration. Work focuses on: • International partnerships with Africa – including Brazil/ China/ • India/ Japan/ Turkey/ USA- Africa, TICAD, Africa-G8, etc. through • NEPAD; • Auditing the African Peer Review Mechanism processes in Africa, • in particular the implementation of the national plans of actions; • Political leadership, parties and the sustainability of democracy in • Africa; • The role of triple bottom – economic, environmental and social • issues for business in Africa; and • The role of the Diaspora in the promotion of Africa’s governance • and integration agenda.
RESEARCH THEMATIC UNITi. Governance and Democracy Projects undertaken 2009/2010: • The nature and role of South Africa engagement in the reconstruction of Zimbabwe • Enhancing governance through information Technology • Africa in search of alternatives to current governance models and practices
RESEARCH THEMATIC UNITii. Peace and Security Seeks to promote Africa’s Peace and Security Agenda, in view of the continent’s aspirations to create stable, peaceful and enabling environments for sustainable development. Focus is on: • Promotion of democratic processes for conflict prevention and management; • Conflict prevention, management and resolution mechanisms at national, regional, continental and international levels; • Migration and security; • Crime and human insecurity and its impact on regional • integration; and • Management of trans-border resources and implications for regional security.
RESEARCH THEMATIC UNITSii. Peace and Security Projects undertaken 2009/10: • Evaluating the capacity of Africa’s multilateral agencies in dealing with conflict and crisis • Enhancing post conflict recovery and reconstruction
iii. Sustainable Development In line with Africa’s commitment to promote people’s empowerment as a basis for its development, this unit promotes grassroots driven, equitable and inclusive use and management of resources (both renewable and non-renewable) with a focus on: • Development of common standards for the access, exploitation, management and sustainable use of all resources; • Monitoring performance in terms of commitments to empowerment e.g. • Millennium Development Goals; • Indigenous knowledge systems and appropriate technologies for beneficiation processes; • Options for the empowerment of critical actors in development in particular the youth and women, and • Examination and development of proposals for poverty intervention strategies.
RESEARCH THEMATIC UNITiii. Sustainable Development Projects undertaken 2009/10: • Assessing regional integration (Continuation from 2008/9) • Informal trade: Integration from below?
iv. Science and Technology AISA seeks to spearhead work towards the development and advancement of Africa’s science and technological platforms as a basis for the pursuit of its common aspiration for sustainable development through: • Supporting processes towards harmonization of regulations that promote the application and safe use of technology; and promotion of the development of centres of excellence in science and technology; • Promoting the development of frameworks that protect intellectual property in Africa, particularly the Pan African Organisation of Intellectual Property; • Facilitating frameworks for technology sharing, transfer and adaptation among and across African countries, and • Monitoring the implementation of Science and Technology plans by the relevant ministries and departments.
RESEARCH THEMATIC UNITiv. Science and Technology Projects Undertaken 2009/10 : • Expanding the understanding of Africa’s urban dynamics • Investigation of the levels of food security in urban areas of major cities of Africa • Establishment of the Science and Technology Advisory Team.
RESEARCH THEMATIC UNITv. Policy Unit Focus was on: • Internal AISA programmes • Internship Programme • Fellowship Programme • AISA Young Graduates Scholars • AISA Guest Lecture Series • Externally driven knowledge transfer/capacity building initiatives • The Gulf of Guinea Directorate • South Africa-Nigeria 10 years • Annual DIRCO Conference • Department of Defence • Support to Universities
SPECIAL PROJECTS AND INITIATIVES • Electoral monitoring project • Women and Defence • Support to SADC Armed Forces • Support to rest of Africa • Support for AU Gender Policy • North Africa Project • The Standard Bank Project • Social Science Research Council (SSRC) • Archie Mafeje Lecture • State of Africa • AISA Autobiography • Growing partnerships • Russian Academy of African Affairs at AISA • Other research-related activities • Conferences :ECCAS, Leipzig panel, ISSC • Research Seminars • Engagement with the Media
PUBLICATIONS DIVISION Primary Function: Publish Research output of AISA through • The Accredited Journal: Africa Insight . • 4 Volumes/ year :(Africa Insight 39) • Books: From AISA research projects, peer reviewed (2 Published in 2009/10) • Africa at a glance: Facts and Figures 2008-2009 (Elize van As) • Unequal Peers: The Politics of Discourse Management in the Social Sciences (Pearl Sithole). • Reports • Zimbabwe Conference Report • Occasional Conference Papers (4 Published in 2009/10) • Monographs • Policy Briefs : intended for Policy makers and interest groups (28 published in 2009/10).
LIBRARY & DOCUMENTATION SERVICES Focus on: • Expanding Library holdings (67,158 books, 18,494 Journals, 4644 Ref collection, 4,706 Archives collection) • Providing efficient &effective services to clients: Academics, Embassies , Corporates, Individuals, Students, Government , AISA researchers& other . • Creating increased awareness of AISA mandate, products and services • Hosted 3 Seminars • LDS Outreach Programme to Schools ( 121 Schools) • Development of Web GIS/Geoportal for AISA • Africa Geo Info Research Network (AGIRIN) project. • Maps Collection • Africa Fast Facts and Africa in Focus map posters • Africa at a Glance.
CORPORATE AFFAIRS, OIL Focus on Developing Partnerships, Hosting events and engaging with the Media. • Developing Partnerships: • AISA/ CoT Ambassadorial Forum Series • Investment opportunities in African Cities (Kigali, Kinshasa) • So what is new after Lisbon? • The Role of African Women as Mothers &Leaders • Africa and the EU • Co-hosted events: • AISA/IDEA: Presentation on Barack Obama’s foreign policy towards Africa: Challenges &Prospects for continent. • AISA/Ebukhosini Solutions: The Islamisation & Arabisation of Sudan- A threat to Africa. • AISA/ NEPAD/ CoT/DAC/ Northern Flagship Institution : Culture in Education (Africa Day)
CORPORATE AFFAIRS, OIL (Cont.) • AISA/Standard Bank: Transnational Communities in Africa • AISA/ DIRCO: 10th Anniversary of Diplomatic relations between South Africa and Nigeria. • Conferences and Seminars. • Archie Mafeje Memorial Lecture • Defining the contours of knowledge production in the 21st C • HIV/AIDS Human security and Violence: addressing Africa’s developmental challenges • Scholarly Publishing in Africa: Opportunities and Impediments • 4th Annual Conference for Young and emerging African Scholars on Democracy and the rule of law. • Media Exposure.
Business Environment Analyses • External Factors Affecting the Business of AISA • Competition from other organizations focusing on Africa, both in RSA and globally, e.g. universities, research consultancies and non-governmental organizations; • The necessity to create varied sources of funding to augment the parliamentary grant
Business Environment Analyses (Cont.) • Identified Internal Factors Affecting the Business of AISA • Lack of attractiveness of AISA as an employer as portrayed by the high staff attrition rate and difficulty in attracting quality researchers; • Non-competitive remuneration; • Management challenges.
Proposed Solutions to AISA Challenges • Delineate AISA’s niche as dictated by its legislative mandate and location within the DST; • Identify and partner with other similar research and governmental organizations in order to have a better impact; • Develop a clear communication and marketing strategy that will ensure that AISA’s products and services are visible and attractive to all its stakeholders and widely accessible to policy-makers and decision-makers; and • Implement recommendations cited in the 2010 Institutional Review relating to improving research capacity, funding from government, co-operation with like-minded institutions and good management.
HR • The AISA Invested 55% of the MTEF allocation to our labour cost (including statutory skills-levy contributions and Interns) • We developed 8 interns and received 3 interns from NRF during the period • Over and above 1.5% of this was invested in the training and development of our staff.
Finance : Strategic objectives Finance, Administration and Information Technology focused on the following strategic objectives during the 2009/10 financial year: • Improve the control environment and comply to all relevant legislation; • Ensure that AISA’s budget is utilized effectively and efficiently in pursuance of its mandate; • Comply with GRAP standards, relevant audit requirements and National Treasury regulations; • Achieve financial management excellence through efficient and effective controls and processes;
Finance : Strategic objectives (Cont.) • Assess and mitigate the impact of the top risks across AISA; • Review and update policies on an annual basis; • Liaise with the internal and external auditors to correct all identified control environment deficiencies; • Manage the institute’s cash flow to facilitate operations; • Effective management and safe-guard of assets; • Ensure that AISA’s insurance policy is adequate and covers all assets and possible liabilities; • Increase the revenue to AISA to augment the grant received by government; • Develop, maintain and improve AISA’s IT infrastructure; • Improve business efficiencies.
Internal Control Environment One of the areas in which AISA rightfully excelled over the last three years was our commitment in improving the internal control environment. Vigorous monitoring, implementation of policies and procedures, a firm hand of the Chief Executive Officer and a zero tolerance approach from the Audit Committee and commitment from staff contributed to the improvements. Although AISA obtained an unqualified audit report for the financial year under review, AISA will continue to improve on matters identified and will endeavor to obtain a clean audit report in the years to come.
Financial Performance AISA ended the financial year with an deficit of (R2,430) million (Surplus R3,997: 2008/9). The deficit derived from two risk identified liabilities at year end which comprised of Post retirement medical aid and the Pension fund conversion liabilities. Although AISA ended the 2009/10 financial year with an accumulated surplus, it must be emphasized that the financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention which differs from cash basis of accounting. Included in the accumulated surplus is committed projects to the amount of R1,168 million as per note 24 (P120) stated in the annual financial statements that was not expensed at year end. From the remaining R10,224 million R3,2 (SFP P95, N5) million refers to the retirement benefit asset, a non distributable asset. This refers to the surplus funds in terms of the current Defined Benefit Plan.
Financial Performance (Cont.) However, the surplus funds for the retirement benefit assets will be distributed when the fund is converted to a Defined Contribution Plan. Also, included in the accumulated surplus are the non-current assets (property, plant, equipment and intangible assets) of the Institution to the amount of R4,847 (N2,3 P95) million to ensure that operations can be conducted and objectives be achieved. From the above AISA also ring-fenced an amount of R3,935 million of which R1,804 million was not expensed at year end. Taking this above into account the accumulated surplus funds available for distribution are calculated at R371 thousand for the year ending 31 March 2010. Total income generated for the 2009/10 financial year amounted to R30,684 million (R31,584 million : 2008/9). 95,4% (96,5% : 2008/9) of Total Income generated, comprised of the grant received from the Department of Science and Technology.
Financial Performance (Cont.) Total expenditure amounted to R33,114 million (R28,207: 2008/9). 49% (53% : 2008/9) of the expenditures incurred refers to employee related costs. Non-current assets increased from R5,957 million to R8,050 million. The increase is as a result from acquisition of property, plant, equipment and intangibles. The retirement benefit asset also grown from R2,418 million to R3,202 million. Current assets decreased from R11,953 million to R7,932 million. The decrease can be attributed to a decrease in trade and other receivables at year end. Non-current liabilities increased from R4,088 million to R4,560 million from the prior year. The increase refers to a substantive increase of R2,661 million in provisions. Trade and other payables decreased from R4,088 million to R1,929 million at year end.
Financial Performance (Cont.) AISA was solvent at year end with total assets less current liabilities at R11,392 million. In terms of liquidity, the Institution is liquid with the current ratio at 1,73 : 1 which means that for every R1 of current liabilities the entity has R1,73 of assets to cover its liabilities. AISA managed through improved monitoring to reduce the accumulated surplus from R13,282 million to R11,392 million.
Budget utilisation The tables below reflect the budget versus actual in income and expenditure for the 2009/10 financial year:
Budget utilisation AISA managed to utilise their budget more effectively and efficiently during the 2009/10 financial year. Although the objective was to have reached a break-even financial scenario at year end, AISA ended its financial year with a deficit of (R2,430) million. Although income generated reflects a 4,19% variance on the overall actuals, it must be noted that income to the amount of R1,167 million was carried forward for committed projects not completed at year end. (See note 13 and 23). Expenditure reflects a 3,39% variance. This can be attributed to employee-related costs with regard to the post-retirement conversion liability as well as the post-retirement medical aid obligation brought in at year end. The overall variance in budget reflected is 7,6%