PRESENTATION OF THE NDA 2014/15 ANNUAL REPORT TO THE PORTFOLIO COMMITTEE OF SOCIAL DEVELOPMENT 14...

PRESENTATION OF THE NDA 2014/15 ANNUAL REPORT TO THE PORTFOLIO

COMMITTEE OF SOCIAL DEVELOPMENT

14 OCTOBER 2015

Presented by: Ms Nelisiwe Vilakazi

CONTENT

Purpose

NDA Role and Mandate

NDA Mission, Vision and Values

Organisation Structure

Human Capital

Strategic Focus Areas

Strategic goals and objective 2014/15

Programme Performance

Enhancing NDA visibility

Financial Report for year end2

PURPOSE

•To present the NDA 2014/15 Annual

Report to the Portfolio Committee of Social

Development for consideration.

3

NDA ROLE AND MANDATE

ROLE AND MANDATE

ACCORDING TO THE ‘ACT’

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 CSOs

that provide services to poor communities.

4

NDA MISSION, VISION AND VALUES

•A society free from povertyVISION

•Facilitate sustainable development by

strengthening civil society organisations

involved in poverty eradication through

enhanced grant funding and research.

MISSION

•Integrity•Dignity •Empowerment •Accountability and Responsibility•Transparency•Excellence•Partnering

VALUES 1 5

6

ORGANISATIONAL STRUCTURE

CEO’s Office· Enterprise Planning and Reporting· Stakeholder and Partnerships

· Internal Audit · Legal and Risk · Company Secretariat

Directorate:Development Management

Directorate: Finance, SCM and IT

Directorate:Research, Evaluation and Capacity Building

NDA Board

Chief Executive Officer

Provincial Offices and Advisory

Centres

Programme Management Unit

Grants Funding and Management

Capacity Building

Monitoring and Evaluation

Research and Policy

Information Technology

Financial Management

Directorate: Human Resources

Human Resource Management and

Development

Directorate: Marketing and

Communications

Internal and External Communications

Shareholder

Supply Chain Management

NDA STRATEGIC FOCUS AREAS

The NDA focuses on the following areas in support of government

priorities on poverty eradication on its primary mandate:

Early Childhood Development

Food Security

Income Generation (Programmes and Projects)

Capacity Building

For the secondary mandate the NDA focuses on:

Research

Policy debates

CSO dialogues7

STRATEGIC GOAL AND OBJECTIVES 2014/15

The objectives of the NDA strategic plan are:

To expand access to capacity building interventions to CSOs in order to improve the quality of the services they deliver to communities

To fund ECD, food security and income generation projects and programmes

To expand access to capacity building interventions to CSOs in order to improve the quality of the services they deliver to communities

To fund ECD, food security and income generation projects and programmes

8

STRATEGIC GOAL AND OBJECTIVES 2014/15

The objectives of the NDA strategic plan are:

To monitor and evaluate all NDA-funded programmes by 2019

To undertake research aimed at providing the basis for development policy and programme implementation, focusing on poverty eradication, unemployment and inequality

To mobilise resources in cash and in kind through sustainable partnership towards supporting and building the capabilities of communities and households for self-reliance

To develop and implement systems and processes to improve the efficiency and effectiveness of internal control and organisational performance

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PROGRAMME PERFORMANCE

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PROGRAMME 1: CAPACITY BUILDING

The Capacity Building programme implement activities that

support grant funding and capacity building for civil society

organisations (CSOs). The strategic objectives of the capacity

building programme are:

To expand access to capacity building interventions to civil

society organisations in order to improve the quality of services

they deliver to communities.

To fund ECD, Food Security and Income Generation projects

and programmes.11

PROGRAMME 1: CAPACITY BUILDING PERFOMANCENO PERFORMANCE INDICATOR PLANNED

TARGET 2014/2015

ACTUAL ACHIEVEMENT

2014/2015

DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT

1 Number ofNDA-funded ECDpractitioners enrolledin NQF Level 4training

227 248 21

2 Value of funding toECD, food securityand incomegeneration projectsand programmes

R33.2 m R32.7 R0.5 m

3 Value of grantsdisbursed

R80 m R75.8 m R4.2 m

4 Number of evaluationreports on outcomesand impact of theNDA’s programme

1 0 (1)

5 Number ofbeneficiaries

6 000 6 000 1 808

6 Number of policybriefs and papersproduced

5 6 1

12

PROGRAMME 1: CAPACITY BUILDING PERFOMANCENO PERFORMANCE INDICATOR PLANNED

TARGET 2014/2015

ACTUAL ACHIEVEMENT

2014/2015


7 Number of mid-termevaluations on NDAgrant-funded projectsconducted

112 113 1

8 Number of close-outevaluations on NDAgrant-funded projectreports produced

52 53 1

9 Number ofperformancemonitoring reportson NDA grant-fundedprojects produced

50 51 1

13

PROVINCIAL BREAKDOWN PER SECTOR – 2014/15

PROVINCE

No. Projects

Amounts Approved

No. of CSOs

Capacitated

No. of NPOs staff

capacitated

NUMBER OF PROJECTS

Income Generation Food Security ECD

Eastern Cape 18 R3 499 916.00 799 1021 4 1 13

Free State 20 R3 337 832.00 126 447 3 1 16

Gauteng 23 R3 051 190.00 162 479 5 1 17

Kwazulu-Natal 19 R3 422 039.00 267 446 3 1 15

Limpopo 22 R3 281 552.00 231 416 4 2 16

Mpumalanga 18 R3 647 802.00 192 468 4 1 13

Northern Cape 21 R4 534 512.00 159 458 7 1 13

North West 47 R9 319 675.00 383 906 4 1 42

Western Cape 54 R4 333 590.00 212 286 5 2 47

TOTAL 242 R38 428 108.00 2531 4927 39 11 19214

CAPACITY BUILDING PROVINCIAL DEMOGRAPHICS – 2014/15

15

Province

No. of CSOs Capacitated

No. of NPOs staff

capacitated

Males Disability

Eastern Cape 799 1021 103 (10%) 16 (1.6%)

Free State 126 447 108 (24%) 10 (2.2%)

Gauteng 162 479 149 (31%) 12 (2.5%)

Kwazulu-Natal 267 446 120 (27%) 12(2.7%)

Limpopo 231 416 54 (13%) 17 (4%)

Mpumalanga 192 468 84 (18%) 14 (3%)

Northern Cape 159 458 73 (16%) 13 (2.8%)

North West 383 906 217 (24%) 24 (2.6%)

Western Cape 212 286 54 (19%) 14 (4.9%)

TOTAL 2531 4927 962 (20%)132 (2.7%)

The Research and development programme implement activities that support the secondary mandate of the NDA, through conducting research, producing research and evaluation information that informs policy and engaging in dialogues with stakeholders to bate policy and development issues. The strategic objective of the programme is: To undertake research aimed at providing the basis for development

policy and programme implementation, focusing on poverty eradication, unemployment and inequality

16

PROGRAMME 2: RESEARCH & DEVELOPMENT

PROGRAMME 2: RESEARCH & DEVELOPMENT PERFORMANCE

NO PERFORMANCE INDICATOR PLANNED TARGET 2014/2015

ACTUAL ACHIEVEMENT

2014/2015


15 Number of mid-termevaluations on NDAgrant-funded projectsconducted

112 113 1

16 Number of close-outevaluations on NDAgrant-funded projectreports produced

52 53 1

17 Number ofperformancemonitoring reportson NDA grant-fundedprojects produced

50 51 1

18 Number of evaluationreports on outcomesand impact of theNDA’s programme

1 0 (1)

19 Number of researchreports produced

3 3 0

20 Number of policybriefs and papersproduced

5 6 1

17

PROGRAMME 2: RESEARCH & DEVELOPMENT PERFORMANCE


ACTUAL ACHIEVEMENT

2014/2015

DEVIATION FROM PLANNED TARGET

TO ACTUAL ACHIEVEMENT

19 Number of casestudies on NDAprogramme areasproduced

6 7 1

20 Number of goodpractice publicationson NDA programmeareas produced

6 6 0

18

The programme implement activities that seeks to to mobilise resources in

cash and in kind through sustainable partnerships with the public, private and

academic sectors to support and fund civil society organisations and

programmes implemented by the NDA in order to increase NDA coverage and

supplement resources provided by the state to the NDA. The strategic

objective of the programme is:

To mobilise resources in cash and in kind through sustainable partnerships

towards implementing community development programmes

19

PROGRAMME 3: RESOURCE MOBILISATION

PROGRAMME 3: RESOURCE MOBILISATION PERFORMANCE

NO PERFORMANCE INDICATOR PLANNED TARGET

2014/2015

ACTUAL ACHIEVEMENT

2014/2015

DEVIATION FROM PLANNED

TARGET TO ACTUAL

ACHIEVEMENT22 Value of resources mobilised in

cash and in kind towards supporting and building thecapabilities of communities andhouseholds for self-reliance

R100 m R104.2 m R4.2 m

23 Number of partnershipagreements signed towards supporting and building thecapabilities of communities andhouseholds for self-reliance

10 14 4

20

RESOURCES MOBILISED FOR PROGRAMMES

The Programme Management and stakeholder Relations and Partnership programme facilitated and mobilised in kind and cash resources to support development programmes implemented by the NDA to fulfil the needs of CSO’s

Programme Name Rand value of mobilised resources

Capacity building programme R 50 437 000

Grant funding and project support R 51 247 862

ECD Awards R 3 351 600

Total resources mobilised R 105 036 462

The governance and administration programme ensures that the NDA

has required processes, systems, procedures, tools and internal policies

that comply with statutory pre-requisites for good governance and

administration . Its also ensures that the NDA has skilled and well

equipped staff to deliver on the mandate. The strategic objective of this

programme is:

To develop and implement systems and processes to improve the

efficiency and effectiveness of internal control and organisational

performance

22

PROGRAMME 4:GOVERNANCE AND ADMINISTRATION

PROGRAMME 4: GOVERNANCE AND ADMINISTRATION


ACTUAL ACHIEVEMENT 2014/2015


26 Percentage achievement ofOrganisational targets as set inthe Annual Performance Plan

80% 87% 7%

27 Percentage of staff who achieved a performance rating of 3 and above

95% 95% 0%

28 Percentage of positive rating on brand recognition achieved

70% 0% (100%)

* Not achieved23

PROGRAMME 4: GOVERNANCE AND ADMINISTRATION

NO PERFORMANCE INDICATOR

PLANNED TARGET

2014/2015

ACTUAL ACHIEVEMENT

2013/4/2015

DEVIATION FROM PLANNED

TARGET TO ACTUAL

ACHIEVEMENT

Unqualified report by

Auditor-General

Unqualified

audit opinion

Unqualified

audit opinion

No deviation

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HUMAN CAPITAL COST PER PROGRAMME

Programme Total expenditure for the

entity (R’000)

Personnel Expenditure

(R’000)

Personnel expenditure as a percentage of

total expenditure (%)

Number of employees

Average personnel cost per employee

(R’000)

Capacity Building 171 213 36 228 14 130 279

Research & Development

4 793 4 615 1 7 659

Resource Mobilisation

610 2 691 0 3 897

Governance & Administration

95 847 24 501 8 47 521

Total 272 463 68 035 23 187 364

1 25

HUMAN CAPITAL

26

The NDA currently has a staff compliment of 187 The diagram below illustrates the percentages of mandate vs. support staff within the NDA programmes.

DMD AND PMU71.1%

ADMINSUPPORT25.1%

R/D3.8%

ENHANCING THE IMAGE OF THE NDA

In enhancing the NDAS brand identity the Agency promoted its brand and

exhibited along DSD Ministerial out reach programmes, participated at the

International day for the eradication of poverty and held a partnership with the

United Nations Development Programme and Nelson Mandela Foundation

Other visibility enhancement programmes targeted private events such as

CSI Trialogue, Top Women Awards and partnering with SALGA

Above that the NDA continued to increase its footprint by increasing the

number of it’s Advisory Centres situated in the various districts around the

country

The NDA also took part in the Mikondzo project of the department of Social

Development where awareness was made on NDA products and services

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FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2015

28

SUMMARISED FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2015

29

SUMMARISED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2015

1 30

COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE

Introduction

The entity reported a deficit of R 12.4m for the financial year under review. The reported deficit is an accounting deficit, not a cash deficit. This deficit is mainly

due to inadequate funding of the NDA. The key drivers of the overall financial performance for the financial year under

review are reported

Revenue

Entity revenue grew by 17% from R221.71m in 2013/14 to R 260.2m in 2014/15. The growth in revenue is driven by increase in conditional revenue from resource mobilisation which increased by 61% from R 44m in 2013/14 to R 71.1m in 2014/15.

Success achieved in resource mobilisation strategy was the key driver of growth in revenue that resulted in increase in conditional revenue and increase in management fee generated from implementation of projects on behalf of partners.

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TOTAL EXPENSES

Total expenses increased by 11.5% year on year driven mainly by the spending in three key programmes: Grant Funding (Mandate) Capacity building (Mandate) Administration (Administration)

Mandate Expenses

Growth in mandate expenses of 14% is driven by spending in the grant funding and Capacity building programmes .

The growth in capacity building programme is attributable mainly to CSO capacitation implemented on behalf of DSD provinces.

This spending grew by R 15 million ( 49%) from R 30 million in 2014 to R 45m in 2015

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2014/015 2013/2014 % Change

Grants disbursed from own allocation R 50.1m R 73.1m -32%

Grants disbursed from conditional grants R 25.7m R 13.5m 136%

Sub- total : Grant Funding R75.8m R86.6m -12.9%

Programme support costs R 26.6m R 26.0m 2.3%

Grand total R 102.4m R 112.6m -9.1%


Spending in capacity building programme increased by 73.9%. This growth is driven by strategic shift towards capacity building coupled with increase in conditional funds raised from other government departments.

Administration Expenses Administration Expenses are driven mainly by compensation of employees

and infrastructure costs. Goods and services spend increased by 9%

2014/ 2015

2013/2014

% Change

Capacity building from own allocation R 19.8m R 6.8m 188%Capacity building from conditional grants

R45.3m R30.4m 49%

Sub- total : Programme spent R 65.1m R 37.2m 74.8%Programme support costs R 4.3m R 2.7m 59.2%Grand total R 69.4m R 39.9m 73.9%

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STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2015

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COMMENTARY ON THE STATEMENT OF FINANCIAL POSITION

Introduction The following major items that constitute the organisations financial position are

discussed hereunder: Bank and cash balances Unutilised third party fundsAccumulated surplus

Bank and cash balances Bank and cash balances of R 109m are made up mainly of the cash belonging to

approved projects (R54m per Note 23) , Unspent portion of funds mobilised (R41.7m) and liabilities of R 16.9m

Unutilised third party funds These funds represents funds mobilised from other government departments, not yet

disbursed to identified projects

Accumulated funds These surpluses are made up mainly of funds committed to approved projects not yet

disbursed (per Note 23) .

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COMMENTARY ON STATEMENT OF FINANCIAL POSITION Exchange Receivables

Liabilities

The Cash and Bank balances held are committed as shown in 1. above.

2014 2013

Rental Deposits for leased offices R 1.6m R 1.4m

Other receivables and employee advances R 0.4m R 0.4m

TOTAL RECEIVABLES R 2.0m R 1.8m

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Thank youTHANK YOU

PRESENTATION OF THE NDA 2014/15 ANNUAL REPORT TO THE PORTFOLIO COMMITTEE OF SOCIAL DEVELOPMENT 14...

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