National Development Agency 200910 Annual Report Cape Town

National Development Agency 2009/10 Annual Report Cape Town 17 November 2010 By NDA CEO: Ms Vuyelwa Nhlapo

TABLE OF CONTENTS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Introduction NDA’s Mandate Vision, mission and values NDA strategic goals Key achievements Financial report Analysis of financial performance Auditor-General report Challenges and Intervention strategy Conclusion

INTRODUCTION • 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 committees: Management committee, Audit & Risk, Human Resources & Remuneration committee and Project and Programmes Screening. • The NDA has for the past four years achieved an unqualified audit.

NDA MANDATE Primary mandate 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 • strengthening the institutional capacity of other civil society organizations involved in direct service provision to poor communities

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 • Undertake research and publication aimed at providing the basis for development policy.

VISION, MISSION, VALUES VISION A society free from Poverty. MISSION Facilitate sustainable development by strengthening civil society organizations involved in poverty eradication through, enhanced grant funding and research. VALUES • Integrity • Respect • Excellence • Commitment • Honesty • Partnering

2009/10 STRATEGIC GOALS Goal 1: To build the capacity of CSO’s to enable them to carry out development work effectively Goal 2: To grant funds to contribute towards the eradication of poverty Goal 3: To facilitate research towards poverty eradication Goal 4: To position the NDA as a premier development agency and mobilize resources

KEY ACHIEVEMENTS FOR 2009/10 The NDA continued to contribute towards poverty eradication by fostering self reliance amongst the poor by achieving the following key outputs and deliverables.

KEY ACHIEVEMENTS FOR 2009/10 --Conti • • • Strategic Goal One A total amount of R 111. 1 million was disbursed to 396 projects. 11 food security projects funded to the value of R 13. 3 million. 11 food security projects supported towards sustainability. 3 551 beneficiaries supported through food security projects, including women, youth and people with disabilities. 45 income-generating projects funded to the value of R 54. 2 million. 45 projects supported towards sustainability. 1 761 employment opportunities created through income-generating projects. 15 agriculture and agribusiness projects funded to the value of R 23. 4 million. 1 071 beneficiaries supported through agricultural and agribusiness projects, including 442 women, 504 men, 125 beneficiaries from incubation centre and, in addition to that, 299 youth and 37 people with disabilities.

KEY ACHIEVEMENTS FOR 2009/10 --Conti • • Strategic Goal One 77 projects approved for funding with capacity building elements, including governance, financial management, conflict resolution and marketing. 6 networks of NGOs funded to strengthen capacity of their membership to the value of R 3. 8 million. Capacity-building interventions implemented for 34 projects to enhance institutional capacity and sustainability. 9 South African Qualification Authority(SAQA) aligned training manuals developed in specific learning areas relevant to NDA Business

KEY ACHIEVEMENTS FOR 2009/10 --conti • • Strategic Goal Two MOU’s (Asgisa and Masisizane) were signed with these strategic partners for facilitation and coordination of programmes in rural economic development zones The NDA 2010 – 2013 strategy document produced on time for tabling in Parliament.

KEY ACHIEVEMENTS FOR 2009/10 --conti • Strategic Goal Three A strategic policy dialogue on the developmental state and the fight against poverty in South Africa was held.

KEY ACHIEVEMENTS FOR 2009/10 --conti • • Strategic Goal Four A National Study on the state of ICT in the NGO sector in South Africa was carried out successfully. Two best-practice case studies on NDA funded projects were produced.

FINANCIAL REPORT: 2009/10 Summarised Statement of Financial Performance for the year ended 31 March 2010 Notes 2010 2009 R Revenue Grant from Government Interest & Other Income 1 Expenses 161 022 034 144 782 000 16 240 034 R 163 449 382 136 267 000 27 182 382 162 298 183 195 428 909 89 643 788 94 689 034 120130910 114 236 418 Mandate expenses Committed poverty eradication projects 2 Project Write Backs Direct project costs 4 (12 361 533) 7 316 287 (2 818 048) 8 712 540 Administration expenses Staff costs Operating leases Accommodation and travel Board fees Consulting and professional fees Depreciation and amortisation IT Communications costs Marketing and communication costs Office relocation costs Other Expenditure Net deficit for the year 5 72 654 395 46 396 708 5 246 543 4 732 224 1 800 038 2 341 546 1 534 898 1 770 069 1 089 994 0 7 742 375 (1 276 149) 75 297 999 43 292 915 5 107 913 3 120 987 1 269 137 5 240 474 1 237 816 1 376 173 1 216 973 2 343 266 11 092 345 (31 979 527) 3 14

FINANCIAL REPORT: 2009/10 ---Conti Statement of Financial Position As at 31 March 2010 Note Assets Current assets Cash and Bank balances Exchange Receivables 1 Non-current assets Property, Plant and Equipment Intangible Asset Total assets 2010 2009 R R 216 141 107 1 299 604 217 440 711 246 519 366 2 049 660 248 569 026 3 772 133 1 045 300 4 817 433 3 897 568 1 434 122 5 331 690 222 258 144 253 900 716 4 431091 3 108 139 150 105 053 22 512 065 180 156 348 6 915 584 2 932 697 179 641 909 21 668 312 211 158 502 42 101 795 42 742 214 40 956 398 1 145 397 40 956 398 1 785 816 222 258 144 253 900 716 Liabilities Current liabilities Payables and Provisions Short-term employee benefits Provision for Committed projects European Union 2 3 Net Assets IDT establishment fund Accumulated surplus Total Liabilities & Net Assets 4

ANALYSIS OF FINANCIAL PERFORMANCE • Grant received from National Treasury through the National Department of Social Development increased by 6% (R 851 k). Interest on bank balances went down by 40%( R 10, 9 million) due to reduction in interest rates and declining cash holdings. • The NDA Board approved 77 projects to the value of R 95 million. There were 7 397 direct beneficiaries and these include 3 917 women, 3 480 men of which 3 532 are youth.

ANALYSIS OF FINANCIAL PERFORMANCE • Projects worth R 12. 4 million were written back in the 09/10 financial year mainly due to project related challenges and environmental factors.

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 R 881 819 where proper procurement processes were not followed.

CHALLENGES & INTERVENTION STRATEGY Challenges Intervention Plan Limited financial resources Resource Mobilisation 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

CHALLENGES & INTERVENTION STRATEGY (cont) Challenges Intervention Plan Limited management, institutional and technical capacity of funded projects. • Financial and non-financial support to CSO national and sectoral networks to provide capacity support to their members. Inadequate skills and competencies • Ongoing skills training on financial of NDA staff to provide effective management and alternative support to funded projects. dispute resolution (ADS) • Training on and institutionalisation of results-based monitoring and evaluation framework. • Strengthening recruitment and selection process for newly appointed staff • Linking project capacity and sustainability to staff performance agreements

CHALLENGES & INTERVENTION STRATEGY (cont) Challenges Intervention Plan 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)

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. For as long as there are women who are subjected to discrimination, exploitation or abuse; We are not resting, and we will not falter, in our drive to eradicate poverty.

Thank You