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PRESENTATION OF THE NATIONAL DEVELOPMENT AGENCY ANNUAL REPORT 2012/13 Portfolio Committee on Social Development, 05 November 2013. CONTENT. PURPOSE INTRODUCTION Role and Mandate Mission, Vision and Values Organisational Structure STRATEGIC GOALS AND STRATEGIC OBJECTIVES

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  1. PRESENTATION OF THE NATIONAL DEVELOPMENT AGENCY ANNUAL REPORT 2012/13 Portfolio Committee on Social Development, 05 November 2013

  2. CONTENT • PURPOSE • INTRODUCTION • Role and Mandate • Mission, Vision and Values • Organisational Structure • STRATEGIC GOALS AND STRATEGIC OBJECTIVES • MEASURING OUR DELIVERY AGAINST STRATEGIC OBJECTIVES • STRATEGY TO OVERCOME AREAS OF UNDERPERFORMANCE

  3. PURPOSE To present the Annual Report of the National Development Agency to the Portfolio Committee on Social Development, Parliament of the Republic of South Africa

  4. INTRODUCTION

  5. ROLE AND MANDATE • In terms of the National Development Agency (NDA) Act (Act No 108 of 1998 as amended), NDA was mandated to contribute towards the eradication of poverty and its causes by granting funds to civil society organisations (CSOs) to: • Implement development projects in poor communities, and • Strengthen the institutional capacity of other CSOs that provide services to poor communities.

  6. MISION, VISION AND VALUES Vision A society free from poverty. Mission Facilitate sustainable development by strengthening civil society organisations involved in poverty eradication through enhanced grant funding and research. Values • Integrity • Accountability and Responsibility • Transparency • Excellence • Partnering

  7. ORGANISATIONAL STRUCTURE 2012/13

  8. STRATEGIC GOAL AND OBJECTIVES 2012/13 STRATEGIC GOAL • To leverage strategic partnerships to eradicate poverty to enable poor communities to achieve sustainable livelihoods. STRATEGIC OBJECTIVES • To carry out programmes or projects aimed at meeting the development needs of poor communities • To undertake research and publications aimed at providing the basis for development policy • To strengthen the institutional capacity of civil society organisations • To promote and maintain organisational excellence and sustainability • To promote debate, dialogue and sharing of development experience

  9. MEASURING DELIVERY AGAINST STRATEGIC OBJECTIVES

  10. Strategic Objective 1 To carry out programmes or projects aimed at meeting the development needs of poor communities

  11. CSOs IMPLEMENTING POVERTY ERADICATION PROGRAMMES FUNDED ACHIEVEMENTS: • 3 programmes on Early Childhood development (ECD), Food Security programme and Income Generation were approved • R26.6m Rand value allocated to ECD programmes against the target of R22.4m. • R30.2m Rand value allocated to Income Generation programmes against a target of R30m. • R79m Rand valueallocated to projects against a target of R74.8m. • R71.1m Rand value disbursed against a target of R42m - includes disbursements to projects approved in the previous years. • R10.8m Rand Value of investment in ECD infrastructure against a target of R6.3m.

  12. CSOs IMPLEMENTING POVERTY ERADICATION PROGRAMMES FUNDED (cont…) • 153 Food gardens on ECD sites fundedagainst a target of 129 Food gardens. • 73.1% Youth and children targeted in NDA focus areas against a target of 20%. • R80.6m Rand Value of funds mobilised for poverty eradication programmes against a target of R80m. • 4122 beneficiaries of ECD against a target of 3850 beneficiaries. • 3480 beneficiaries of Food Security against a target of 2912 beneficiaries. • 507 Jobs created through ECD against a target of 114 jobs. • 477 Jobs created through Food Security against a target of 400 jobs.

  13. CSOs IMPLEMENTING POVERTY ERADICATION PROGRAMMES FUNDED DEVIATIONS : • R18.7m Rand value Food Security against a target of R22.4m - Food security beneficiaries target was met with reduced funding representing efficiency in utilisation of resources. • 667 ECD practitioners trained against a target of 774 - Although the training of the practitioners is currently underway, some of the modules and full qualifications have not been completed for recording in accordance with the required POE. • 60.5% women beneficiaries targeted in NDA focus areas against target of 70% - under-achievement due to high uptake of youth, particularly in food security and income generation. • 1.2% People with disability beneficiaries against a target of 10% - There was over-targeting in this area as the national norm is 2%. • 906 Jobs created through Income Generation Programmes against a target of 1686 - target was reviewed to accommodate increased stipend for project members.

  14. Strategic Objective 2 To undertake research and publications aimed at providing the basis for development policy

  15. NDA RESEARCH AGENDA AND THINK TANK ACHIEVEMENTS • Research Agenda was approved • None DEVIATIONS • None • Think Tank not established - The Launch for the Think Tank was postponed to next financial year due to a long vetting process for potential members of structure

  16. RESEARCH TO SUPPORT INTERNAL FUNCTIONS ACHIEVEMENTS • 88 close out evaluation reports on NDA funded projects produced exceeding a target of 85. • 3 case studies produced on NDA programme areas meeting the annual target of 3. • 4 good practice reports produced on NDA programme areas meeting the annual target of 4. • 12 Synthesis reports produced meeting the annual target. • 47 Performance Monitoring reports produced for NDA funded projects exceeding a target of 42. • 4 Research Reports on NDA programme areas exceeding a target of 2. • 5 Position papers/policy briefs on NDA programme areas exceeding a target of 4.

  17. RESEARCH TO SUPPORT INTERNAL FUNCTIONS DEVIATIONS • 38 baseline reports produced on NDA approved projects against a target of 58 -There were fewer projects that required baseline information funded by the NDA. • 47 mid-term evaluation reports on NDA funded projects against a target of 127 - There were fewer projects that required midterm evaluation than the targeted. • Online Resource Centre not established - due to delays in completing the configuration of the IT tool for hosting the Online Resource Centre. • Impact assessment report not produced - caused by the long time it has taken to plan and conduct the impact assessment. • .

  18. RESEARCH TO SUPPORT INTERNAL FUNCTIONS (Cont…) • Journal articles not produced against a target of 2 - the research studies that will inform the journal articles were completed in March 2013 limiting the time required to complete writing and producing journal articles. • Development report not produced against a target of 1 - caused by the long time it has taken to plan and conduct the studies required to write and produce the development report. • South African CSOs MDGs Country report not produced against a target of 1 - caused by the long time it has taken to plan and conduct the studies that will inform the MDGs country report.

  19. Strategic Objective 3 To strengthen the institutional capacity of civil society organisations

  20. STRENGHTHENED CIVIL SOCIETY ORGANISATIONS ACHIEVEMENTS • 223 CSOs capacitated in governance; financial, project & conflict management; business plans, strategic planning and technical skills exceeding an annual target of 210. • 3831 CSOs Beneficiaries from CSOs capacity building interventions (governance; financial, project & conflict management; business plans, strategic planning and technical skills) exceeding an annual target of 2520. • R4.4m allocated and disbursed to Capacity Building for Lobbying and Advocacy to CSOs networks exceeding an annual target of R4.2m. • CSO’s Database by geographic location and sector developed as planned. DEVIATIONS • 78% of CSOs demonstrating improved implementation (governance; financial, project & conflict management; business plans, strategic planning and technical skills) - deviation was due to poor improved performance from participants who were trained on financial management which averaged 58% improvement.

  21. Strategic Objective 4 To promote and maintain organisational excellence and sustainability Human Resources

  22. COMPLETE STAFF COMPLEMENT AND COMPETENT WORKFORCE ACHIEVEMENTS • 2.26% of vacancy rate against approved staff complement against a target of 5%. • 1.75% Staff turnover in critical skills against a target of 8%. • 70% staff trained according to Work Skills Plan meeting the planned target of 70%. • 96.1% of all staff achieving a performance rating of 3 and above exceeding the planned target of 95%. DEVIATIONS • None

  23. CONDUCIVE ORGANISATIONAL CLIMATE & ORGANISATIONAL SYSTEMS AND PROCESSES REVIEWD AND IMPROVED ACHIEVEMENTS • 62.5% of positive rating of staff perceptions achieved exceeding a target of 60%. • 100% implementation of recommendations from the climate and perception survey report as meeting the planned target of 100%. • 100% of HR strategy executed per timeline exceeding an annual target of 80%. • 100% Compliance to HR-related legislation and regulations meeting the planned target of 100%. • 80% Reduction in repeat internal and external audit findings meeting the planned target of 100%. DEVIATIONS • None

  24. MONITORING AND EVALUATION OF EMPLOYEE PERFORMANCE ACHIEVEMENTS • 98% of staff performance contract submitted on time exceeding a target of 90%. • 98% of staff performance reviews conducted bi-annually exceeding a target of 90%. DEVIATIONS • None

  25. Strategic Objective 4 & 5 To promote and maintain organisational excellence and sustainability To promote debate, dialogue and sharing of development experience Marketing and Communications

  26. RESOURCE MOBILISATION EVENTS & NETWORKS AND NETWORKS AND PLATFORM HOSTED ACHIEVEMENTS • 3 events of resource mobilisation events hosted exceeding the planned target of 2. • 9 CSO Provincial Sector Fora hosted meeting the planned target of 9. • 1 National CSO Sector Forum hosted meeting the planned target of 1. • 2 NDA profiling events sponsored meeting the planned target of 2. DEVIATIONS • None

  27. CSO DIALOUGUES FACILITATED ACHIEVEMENTS • None DEVIATIONS • 4 of Provincial Dialogues hosted against a target of 9 – As it already happened through the national CSO sector forum. This was to avoid duplication. • 1 of National dialogue not hosted as planned - As they already happened through the provincial sector for a. This was to avoid duplication.

  28. NDA BRAND AWARENESS AND STAKEHOLDER SATISFACTION ACHIEVEMENTS • None DEVIATIONS • Brand survey not conducted - Survey moved to 2013/14 financial year. • Customer satisfaction survey not conducted - A follow-up survey was undertaken but was disqualified due to the low number of responses received.

  29. COMMUNICATION TOOLS TO SUPPORT NDA PROGRAMMES ACHIEVEMENTS • 12 NDA publications produced as planned. • R1m Rand value of free publicity (print, electronic and online) secured exceeding a target of R250 000.00. • 676 246 NDA website hits exceeding a target of 25 000hits • 10000hrs spent on NDA website exceeding a target of 85hrs. • 11 audio visual material collected from dialogues against a target of 10. • 114 Internal communications initiatives implemented (Rara Sessions, Newsflash and Newsletter) exceeding a target of 110. • 7 Special Development Profiling Events implemented as planned.

  30. COMMUNICATION TOOLS TO SUPPORT NDA PROGRAMMES DEVIATIONS • R398 742 Rand value of media advertorials secured against a target of R700 000 - The final approved budget was R300 000 vs the R700 000 in the Annual Performance Plan. • Intranet hits were not monitored– Due to the delays in implementing the ERP system as the tender was withdrawn.

  31. Strategic Objective 4 To promote and maintain organisational excellence and sustainability FINANCE

  32. EFFICIENT AND EFFECTIVE MANAGEMENT OF PROCUREMENT ACHIEVEMENT • 88% compliance to procurement regulations achieved against a target of 100%. • 95% compliance to all PFMA and Treasury regulations as planned. DEVIATIONS • None

  33. SOUND FINANCIAL MANAGEMENT AND OPTIMAL CASH MANAGEMENT ACHIEVEMENT • 59:41 Ratio, mandate vs administration costs as percentage of Government Grant achieved against a target of 55:45 ratio. • 100% cash efficiently managed as planned. • 100% Surplus cash investments within target set per policy. DEVIATIONS • None

  34. EFFICIENT AND SECURE ICT SYSTEM, HARDWARE AND NETWORKS ACHIEVEMENT • 48hrs as minimum time on disaster recovery achieved as planned. • 99.8% of uptime on ICT network achieved exceeding an annual target of 90%. DEVIATIONS • 35% of implementation of ICT improvement project achieved against a target of 100% - The integrated ERP system not implemented due to insufficient responses to the tender resulting in the tender withdrawal. • IT User Satisfaction Rating on Customer Survey not conducted - due to the cancellation of the ERP systems implementation.

  35. Strategic Objective 4 To promote and maintain organisational excellence and sustainability Risk, Audit and Governance

  36. EFFECTIVE AND EFFICIENT CORPORATE GOVERNANCE ACHIEVEMENTS • 80% audit findings closed out exceeding an annual target of 70%. • 80% Compliance to governance principles and prescripts as planned. DEVIATIONS • None

  37. MAINTAIN A POSITIVE AUDIT OUTCOME ACHIEVEMENT • Unqualified AG audit report DEVIATIONS • None

  38. EFFECTIVE RISK MANAGEMENT, FINANCIAL AND INTERNAL CONTROLS ACHIEVEMENTS • 70% reduction in high risks as planned. • 90% reduction on number of fraud cases at project level as planned. DEVIATIONS • 80% Implementation of internal audit coverage plan against a target of 100% - The Auditor General requested that Internal Audit perform reviews on the performance information and management accounts. In addition to the approved Internal Audit coverage plan five adhoc audits were completed.

  39. MONITORING AND EVALUATION OF ORGANISATIONAL PERFORMANCE ACHIEVEMENTS • None DEVIATIONS • 71% performance was achieved against 2012/13 annual Performance Plan deviating from the 80% planned target - During the planning process, NDA did not anticipate the complexity of the work required in planning key deliverables especially in work relating to research.

  40. STRATEGY TO OVERCOME AREAS OF UNDERPERFORMANCE Review of delivery model and organisational structure • NDA Board commissioned the Organisational Structuring Project with the aim of aligning the strategy with structure and competencies to be able to deliver on the strategic plan Monitoring and evaluation • NDA Monitoring and Evaluation (M&E) Framework and Guidelines were developed to promote and support the growing M&E culture in the National Development Agency Strategic workforce plan • NDA developed a Strategic Workforce Plan to support the achievement of the NDA strategic goals by ensuring adequate supply of human capital in terms of both numbers and skills.

  41. FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2013

  42. SUMMARISED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2013

  43. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE • INCOME 1.1 Recognised Transfer Revenue is made up as follows: 2013 2012 Transfer Revenue received from DSD R 166.3m R 161.4m Funds mobilised from partners R 18.1m R 2.1m The growth in transfer revenue of 13.1% year on year was mainly driven by increase in funds mobilised from other partners and government departments. The NDA allocation from DSD increased by only 3% from R 161 million in 2012 to R 166 million. 1.2. Finance Income Interest income fell by 14,7 year on year due to reducing cash balances and lower interest rates. 2. TOTAL EXPENSES Total expenses increased by 18.1% year on year driven mainly by the increase in mandate expenses. 2.1 Mandate Expenses • The increase in Mandate Expenses is attributable mainly to the significant increase in the projects committed and managed on behalf of other partners and government departments. 2. MANDATE COSTS 2.1 Commitments to projects from NDA allocation • 82 Projects worth R78.9 million were approved by PAC in 2013 financial year, all these projects were contracted and committed by end of March 2013. • The commitments of R 72.9 million per Income statement are made up as follows: • - Current year commitments - R 78,9 million • - Prior year commitments - R 0.573 million • - Ring fenced funds 2013 Commitments - (R 6.5million) • - Net commitments per Income Statement - R 72.9million)

  44. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE 3. ADMINISTRATION EXPENSES Administration expenses are driven mainly by infrastructure costs (Operating Costs) and staff costs due to the nature of NDA’s business. 3.1 Staff costs The increase in compensation of employees of 19% is attributable to increase in staff compliment due to filling of critical posts that were vacant in the previous year and annual inflationary adjustment of 6.5% in salaries. 3.2. Operating Leases The year on year of 13% in operating lease is attributable to average annual increase in rentals of 9% and the above inflation increase in municipal services expenses. 3.3 Other operating costs Operating costs year on year increase of 38.5% was driven by increases was attributable to the following items : • IT Communication costs increased due to implementation of new MPLS network • Marketing cost increased due to the increased drive to achieve improved NDA visibility and reach to communities we serve • Professional and consulting fee increases mainly due to legal fees and forensic costs • Annual external audit fees increases 2. MANDATE COSTS 2.1 Commitments to projects from NDA allocation • 82 Projects worth R78.9 million were approved by PAC in 2013 financial year, all these projects were contracted and committed by end of March 2013. • The commitments of R 72.9 million per Income statement are made up as follows: • - Current year commitments - R 78,9 million • - Prior year commitments - R 0.573 million • - Ring fenced funds 2013 Commitments - (R 6.5million) • - Net commitments per Income Statement - R 72.9million)

  45. Statement of Financial Position as at 31 March 2013

  46. Commentary on Statement of Position • Cash and Cash Equivalents The Cash and Bank balances held are committed as follows as follows: 2013 2012 • Tranches owing to approved projects R 83.7m R 90.4m • Unspent portion of third party managed funds R 10.3m R 9.8m • Cash due to creditors and employees R 11.4m R 11.4m • Unencumbered Cash R 3.4m R 9.1m TOTAL CASH BALANCES R 108.9m R 113.4m The 4% decrease in cash balances is largely due increase in cash disbursements to projects in the current year. 2. Exchange Receivables The Receivables are made up as follows: 2013 2012 • Rental Deposits for leased offices R 1.4m R 1.4m • Other receivables and employee advances R 0.4m R 0.4m TOTAL RECEIVABLES R 1.8m R 1.8m 3. Liabilities The Cash and Bank balances held are committed as shown in 1. above.

  47. Cash flow statement

  48. Thank you THANK YOU

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