REDCAP JUMPSTART SCHOOLS Giving unemployed...

April 2010 - March 2011PRICELESS (VAT INCL)

REDCAP SCHOOLS

developing a culture of

excellence

JUMPSTARTGiving unemployed youth an opportunity to gain much needed work experience

BURSARIESA hand up for deserving children

REDCAP AR 2011

Creating best practice in physical education and sport

in public schools

IN

DE

X

19

01 Scope & boundary

02 Highlights

03 Director’s report

05 Manager’s report

07 What we are about

10 Our stakeholders

11 Our partners

12 Our impact

13 Governance

14 Remuneration philosophy

15 Fundraising

16 Our projects

17 Kids are Priceless

19 YoungHeroes

21 RedCap Schools

23 JumpStart

25 CompStart

27 Bursaries

28 Letters

29 Annual financial statements

23

he RedCap Foundation is a registered non-profit and public benefitorganisation which carries out its activities in all nine provinces of South Africa.

This annual report, for the period 1 April 2010 to 31 March 2011, is the fifth year of reporting since the RedCap Foundation’s establishment in 2006.

The annual financial statements have been prepared on the historic cost and going concern basis in accordance with an association incorporated under Section 21.

SCOPE & BOUNDARY

REDCAP FOUNDATION - PAGE 1 REDCAP FOUNDATION - PAGE 2

raised from fundraising initiativesR799,337

20,000 children benefitted fromRedCap Foundation programmes

220 teachers trained in 26 schools

67% increase in number of bursaries from 149 to 249

unemployed matriculants given work experience in Mr Price stores1175

SCOPE & BOUNDARY HIGHLIGHTS


here are millions of young South Africans who are not able to generate their own income, mostly due to an education system that has failed them. Our country spends more on education per capita than most other

countries in the world, yet the performance of our learners ranks amongst the worst in the world.

At the RedCap Foundation we invest in innovative interventions, collectively constructed and implemented through the participation of strategic partners.

We partner with civil society, government, business and the broader community, to address the challenges that are impacting negatively on the ability of the children and youth of our country to become inspired, healthy and engaged citizens.

Our YoungHeroes programme paved the way to success on these innovative solutions and was instrumental in establishing the current systemic partnership with the National Department of Basic Education, where the resources developed as part of the test intervention are used to impact schools in all provinces.

DIRECTOR’SREPORT

T

Verna Botha-Richards


The evolving RedCap Schools programme demonstrates our long-term commitment to improving the quality of education in public schools, as we attempt to assess the impact of an holistic intervention where all stakeholders are involved in bringing about change in a school.

Although the JumpStart programme is by nature a short term solution to the current problems faced by unemployed matriculants, we believe that the investment is necessary for the youth of today.

The investment in Monitoring and Evaluation (M&E) tools will feed important information into our strategic processes, as improved and more accurate data will assist us to make more informed decisions. The RedCap Online system will form the base for our Knowledge Centre, which we will use to broadly share our learnings.

Looking AheadWe are passionate about connecting non-profit organisations, government departments and businesses interested in addressing the current skills gap existing amongst unemployed matriculants. We have a plan to increase fundraising and awareness initiatives through strategic alignments with the Mr Price Group retail brands.

Environmental ResponsibilityThe Foundation also acknowledges its responsibility towards its environmental impact and plans to introduce mitigation efforts to reduce its impact on the environment.

AcknowledgementsWe are very proud of the achievements of the RedCap Foundation over the past five years. This is a direct result of the passion, ability and high energy of our RedCap Foundation team.

Finally, I would like to express our appreciation to the Board of Directors of Mr Price Group for their on-going commitment and financial support. We are proud of our association with Mr Price Group. The business values and lessons learnt in the corporate sphere have been integrated into the non-profit sphere to bring about meaningful and sustainable change.

Verna Botha-RichardsFoundation Chairman

A big vote of gratitude must also go to our RedCap Foundation board members for their guidance, support and time dedicated to the Foundation.


MANAGER’SREPORTIn the current financial year, the Foundation reached over 20,000 children through its education programmes, trained around 220 teachers and positively impacted 26 schools. The bursary fund also grew by 67% from last year, with 249 bursaries awarded to children from pre-school to tertiary education.

his year the Foundation launched an Integrated Monitoring and Evaluation (M&E) tool, which included the training of all programme co-ordinators, on how to incorporate M&E into

the programmes implementation process. Our objective to integrate M&E into the roles of programme co-ordinators has shifted thinking significantly and M&E is now seen as a tool that will inform strategy and programme methodology in future.

Further to Mr Price Group’s donation of R8.6 million, the Foundation raised nearly R800 000 from various channels,

including donations from Mr Price Group employees, customers and suppliers, cause-related product sales initiatives, volunteering initiatives and product sales.

Our partnership with the National Department of Basic Education developed significantly and has progressed to an active working relationship this year. We encourage regular structured physical activity in all public schools in South Africa, and our role in this partnership is to fund the establishment of RedCap Centers of Excellence, where best practice in Physical Education (PE) and school sport are shown. In addition, we share learnings developed through

Natasja Ambrosio


the RedCap centres with district officials, school leadership, teachers, provincial structures and the national Directorate for School Enrichment Programmes. The Foundation is pleased to see the progress that has been made this year with the re-introduction of PE as a subject in schools, with an allocation of up to two hours per week dedicated to PE.

The Foundation launched a new project with five primary schools in KwaDukuza, focusing on a whole school improvement intervention. The RedCap Schools Project is implemented in partnership with various strategic partners to build a culture of excellence in these schools, and thereby inspire other schools to do the same. This year, our main focus was on school selection, stakeholder engagement and conducting baseline assessments, to inform our interventions and support our M&E process.

The Foundation grew its reach of the JumpStart Programme to another four provinces, and now offers this programme to seven provinces in South Africa. Our work this year highlighted the significant challenges faced by this programme, in the ever-growing gap of mathematics and literacy skills in matriculants seeking employment.

Historically, Mr Price Group was able to employ entry level employees based on a matric certificate, but has now introduced a screening test for applicants due to poor numeracy and literacy levels demonstrated by matriculants. This significantly impacted the JumpStart programme, as around 70% of potential candidates failed the job screening test. We were forced to look at the strategic intent of this programme and how our methodology could address the gaps that exist in the skills of unemployed youth. We noted that work experience was not the only reason why matriculants were not able to secure available jobs and that a programme to improve English communication and basic business calculations is needed.

We recognise these challenges but remain confident that the Foundation is making a meaningful contribution to education and the unemployed youth in South Africa.

MANAGER’S

Natasja AmbrosioFoundation Manager


WHAT WE ARE ABOUT

The RedCap Foundation has a

vision for South Africa whereyoung people create positive

social change by beinginspired, healthy and

engaged citizens.

To achieve this, we focus on children from

birth to 25 years as our beneficiaries.


We understand that systemic change is necessary in order to achieve the vision. It is for this reason that the Foundation invests in sustainable and innovative interventions, focused on South African national priorities, through strategic partnerships.

Education is the main focus of the Foundation. Our objective is to inspire a different way of thinking and implementation in the education system. Every intervention is established with a sustainability strategy to avoid creating dependency amongst participants. We invest in human capacity to enable appropriate responses to the educational needs of the children. There is a continuous shift of ownership to the participants within the school community, including the provincial and regional education departments, principals, teachers, parents, learners and the broader community.

The Foundation identifies gap areas where it can innovate and show different ways of addressing challenges currently experienced by the system.

Decisions are informed by research commissioned and funded by the RedCap Foundation and strategic partnerships with civil society and government. The recently introduced Integrated Monitoring and Evaluation (M&E) process, will assist by informing our strategy in future, as we believe the data generated from the M&E process will be valuable in shaping strategic thinking.

Decisions are also informed by alignment with Mr Price Group’s social investment agenda, coupled with the pressing needs of children and youth in South Africa, to ensure both a social and economic return on investment.The critical importance of the environment and the impact of climate change, in particular on citizens of lower income groups, has been acknowledged.

HOW WE CREATE VALUE

HOW WE MAKE DECISIONS

Mr. Mathonsi: Principal Nyakana Primary School


OUR METHODOLOGY

The RedCap Foundation is strategically linked to Mr Price Group and realises the value of business concepts and thinking to address social challenges in an innovative way. This business thinking has influenced our methodology in the following ways:• recognisingtheimportanceofincentivesindrivingperformance;• theneedforcapacitybuildingandskillsdevelopmentto achieveresults;• creatingspaceforinnovation;• offeringvaluebydrivingefficiencywithlimitedresources;• theimportanceofstakeholderengagement;and• thevalueofownership,passionatepeopleandpartnerships.

This methodology forms the basis of the Foundation’s interventions to address the complex social challenges we face in our country today.

GOVERNANCEThe Foundation is governed by a formal executive committee that meets quarterly. Further details on governance is located on page 13 of this report.

MATERIAL ISSUES Material issues are identified through a process of continuous research, which includes information derived from engaging with stakeholders and the Integrated Monitoring and Evaluation process. The following material issues have been identified:• Thepoorlevelofeducationofferedbythepublicschoolsystemin SouthAfrica;• Thelackofparentalandcommunityownershipinchildren’s education;• Thedependencymindset,oftenvisibleamongstpoorcommunities;• Thecomplexitiesinvolvedinimprovingtheeducationsystem;• Thegapbetweenbusinessneedsandunemployedyouthin SouthAfrica;• Thelackofstructuredphysicalactivityandsportsopportunities forchildrenfrompoorcommunities;• Theincreasinggapofinequality,aggravatedbypooreducation inpublicschools;• Highlevelsoforphanedandvulnerablechildren;and• Limitedcollaborationbetweengovernment,civilsocietyand business.

Mr Senzo Mchunu: MEC Education KZN


OUR STAKEHOLDERS

RedCap Foundation

Government

Benef iciaries

Implementationpartners

Funders

Media

Civil Society

For further information

about our stakeholder

engagement, please visit:

www.redcapfoundation.org

We acknowledge that our programs will have very little impact without the involvement and collaboration of our stakeholders. For this reason the Foundation, since its inception, has engaged with its stakeholders and built

partnerships with the collective aim of improving the lives of children and youth in South Africa.


OUR PARTNERS

RedCap Foundation: +27 31 310 8242 [email protected]

Is our implementing partner for the YoungHeroes project - a dynamic sports development organisation with a mission to inspire and empower people to live their

dreams through sport, health and education.

DUT provides training for educators in basic computer literacy and this enables the educators to transfer these skills to learners in their schools.

Is our sponsor of computers for RedCap Schools. They allocate 150 desktop computers per year, to help set up computer labs in schools.

Is led by Melusi Zwane, a former School Headmaster and “IT activist” with apassion for development of less privileged schools. Melusi is involved in

mentoring principals in our RedCap Schools and project managing the implementation of computer rooms at the schools.

Is our implementing partner in the RedCap Schools Project – JET has a mission to offer educational research and knowledge-based interventions that are innovative and

sustainable.

www.redcapfoundation.orgDonations: if you would like to make a donation, please email

the Foundation for further information.


Impact Description of intervention

Social •Improvingeducationforchildrenbydevelopingteacher,principal,districtandparentalknowledge;•BuildingcapacityintheNon-ProfitSectorbysharingknowledgewithimplementationandstrategicpartners;•Contributingtopolicydevelopmentandimplementationstrategiesineducation;•Addressingexistinggapsbetweenunemployedyouthandaccesstojobopportunities;and•Creatingcollaborativepartnerships,withinandacrosssectors.

Financial •Fundingnecessaryresourcesandcapacitybuildingineducation;•Fundraisinginitiativestoincreaseincomegeneration;•Sustainableincomeandinvestment;and•Governanceandauditedfinancials.

Environmental •Reduce,reuseandrecycleinitiativesinpartnershipwithMrPriceGroup;•Environmentallypreferredproducts;and•Environmentaleducationandinitiativesinschools(Eco-Schools).

Economic •Improvingthelevelofeducationthroughinitiativesandbursaries;•Addressingskillsgapbetweenunemployedyouthandbusinessneeds;•Jobcreationincivilsocietythroughimplementationpartnersparticularlyinabsorbingskillsinsportsdevelopment;and•Localeconomicdevelopmentthroughusingskillsandservicesfromlocalsmallenterprises.

• Teacherstrikes• Lowmoraleofteachersandschoolleadership• Lackofparentalinvolvementineducation• Sustainablefunding• Resourcelimitations• Gapbetweenunemployedyouthandjob market requirements• Successionplanningandresourcecapacityof implementation partners• Dependancymindset

• Improveeducation

• Improveworkskillsforunemployedyouth

• Influenceeducationpolicy

• Fundraising

• Sustainableinvestment

• Reduceenvironmentalimpact

• Encouragemeaningfulcross-sectorcollaboration

Risks Opportunities

OUR IMPACT

RISKS & OPPORTUNITIES


GOVERNANCECOMMITMENT STATEMENTThe RedCap Foundation subscribes to sound values of good corporate governance and supports, where applicable, the principles and practices of the King Code of Governance for South Africa 2009 (King III).

In addition to ensuring compliance with the new Companies Act, Act 71 of 2008, the Foundation annually renews its registration as a non-profit organisation with the Department of Social Development (registration number 053 536 NPO). Furthermore, the Foundation continuously ensures that it meets the requirements of both a public benefit organisation and welfare organisation, as stipulated in terms of the Income Tax Act, Act 58 of 1962.

DIRECTORS AND MEMBERSThe Foundation was formed with an executive committee comprising seven members, two of which were directors. In the year under review, the following changes to the committee occurred:

• MrShanevanNiekerkresignedasadirectorand MrStuartBirdwasappointedinhisstead;• MrsBotha-Richardsassumedtheroleofchairman;• MrPatrickJeareyresignedasamember;and• MrsLouiseHolmesandMrCreesenNaickerwere appointed members.

As at the year end, the executive committee of the Foundation consisted of the following seven members:

• MrsVernaBotha-Richards(Chairman)• MrStuartBird(Director)• MrsNatasjaAmbrosio• MrsHelenGrosvenor(CompanySecretary)• MrsLouiseHolmes• MrCreesenNaicker• MrPierreTostee

Subsequent to the year end, Mrs Ambrosio was appointed director, thus ensuring compliance with section 66 (2)(a) of the Companies Act, Act 71 of 2008, which stipulates a minimum of three directors for a non-profit company.

FOUNDATION MANDATEThe Foundation operates in terms of a formal mandate, the purpose of which is to regulate how business is to be conducted by the committee in accordance with the principles of sound corporate governance. Whilst the Foundation’s Memorandum and Articles of Association outline its statutory duties, the mandate ensures that all committee members, acting on behalf of the Foundation, are aware of their duties and responsibilities as members and the various legislation and regulations affecting their conduct, and to ensure that the principles of sound corporate governance are applied in all their dealings in respect of, and on behalf of, the Foundation.

COMPANY SECRETARYIn view of the recommendations outlined in King III on the responsibilities of the company secretary, the committee believes Mrs HE Grosvenor is a competent, suitably qualified and experienced company secretary able to provide the Foundation with the requisite support for its efficient functioning and discharge of its duties.

Member July 2010 AGM (September 2010) November 2010 February 2011 March 2011

Mrs Verna Botha-Richards Present Present Present Present Present

Mr Stuart Bird Not appointed Not appointed Present Present Present

Mrs Natasja Ambrosio Present Present Present Present Present

Mrs Helen Grosvenor Present Present Present Present Present

Mrs Louise Holmes Absent Absent Present Present Absent

Mr Creesen Naicker Not appointed Not appointed Present Present Present

Mr Pierre Tostee Absent Present Present Absent Present

MEETING STRUCTURE AND ATTENDANCE AT MEETINGS

A minimum of four executive committee meetings are held during the year and the annual general meeting is held in September.


REMUNERATION PHILOSOPHY

he RedCap Foundation associates are a vital resource as each plays a role in representing the Foundation’s culture, ethics and values that contribute to the improvement in the welfare and

lives of the youth in South Africa.

The Foundation is affiliated to Mr Price Group and therefore has a similar remuneration philosophy to that of the group, which as a value retailer, remunerates at the market median. Foundation associates also participate in the Mr Price Group employee share option and investment schemes, which allows associates to share in the growth of the Group as a whole.

Key to the Foundation’s future growth and sustainability is the ability to attract, retain and motivate competent people within its budgetary allowances. The remuneration philosophy centres on creating partnerships with our associates, during the journey of continued growth and

development, whilst on their career path. Remuneration is not influenced by race, creed or gender, with the emphasis on equal pay for equal work.

At the end of the 2011 financial year, the Foundation employed three full-time permanent employees, including Mrs Ambrosio who has subsequently been appointed a director. The other two Foundation directors, the company secretary and two members of the Foundation are employed by Mr Price Group and offer their services to the Foundation pro-bono. Mr Creesen Naicker, a member of the Foundation, was paid a monthly retainer in his capacity as an independent consultant. Subsequent to the year end, a further two full time permanent employees have joined the Foundation, bringing the team to five.

T

Remuneration is not influenced by race, creed or gender, with the emphasis on equal pay for equal work.

Member July 2010 AGM (September 2010) November 2010 February 2011 March 2011

Mrs Verna Botha-Richards Present Present Present Present Present

Mr Stuart Bird Not appointed Not appointed Present Present Present

Mrs Natasja Ambrosio Present Present Present Present Present

Mrs Helen Grosvenor Present Present Present Present Present

Mrs Louise Holmes Absent Absent Present Present Absent

Mr Creesen Naicker Not appointed Not appointed Present Present Present

Mr Pierre Tostee Absent Present Present Absent Present

Smangele Mbeje

Cathy Kinnear

Thandeka Zulu


REDCAP FOUNDATION - PAGE 16

Ride for RedCap Johannesburg

to Durban

FUNDRAISING

Fundraising initiatives include the following:• KidsarePricelesssofttoysaresoldinMrPriceHomestoreswitha percentageofprofitsdonatedtotheRedCapFoundationandUnicef;• MrPriceGroupassociatesdonatemonthlyfromtheirsalariestothe RedCapClub;• MrPriceGroupcustomersdonateviatheirMrPriceMoneyaccounts;• MrPriceGroupsupplierdonations;and• Fundraisinginitiatives,coordinatedbytheRedCapFoundationteam and associates from Mr Price Group.

The RedCap Foundation is a registered Public Benefit Organisation, and issues a tax deductible receipt, in terms of section 18A of the Income Tax Act, to donors of the Foundation. This year the Foundation raised a total of

from the above initiatives. R799,337

As a Non-Profit Organisation, the RedCap Foundation is aware of the need to build a sustainable organisation and therefore commits to fundraising initiatives in addition to the annual donation made by Mr Price Group.


JUMPSTART

YOUNGHEROES

COMPSTART

REDCAP SCHOOLS

322

272 12

23

4

45

23

OURPROJECTS

484 614 5

Port Elizabeth

REDCAP FOUNDATION - PAGE 16REDCAP FOUNDATION - PAGE 15

What we did: Our partnership with UNICEF continues to enable their work in support of government’s prioritisation of Early Childhood Development (ECD) at a national level.

Amongst the many contributions that have been supported by the partnership are the provision of resources to 27 ECD centres, the production and distribution of materials and a knowledge-building seminar.

Our ongoing support of UNICEF is helping to address major challenges facing young children, such as inadequate access to ECD services.

UNICEF also supported the leadership and management skills-building of 40 middle-level managers from key government departments, civil society and the private sector. These activities are specially designed to improve the quality of and access to ECD in South Africa, as well as strengthen systems at the level of planning, implementation and actual delivery of programmes.

Our aim: We aim to provide early stimulation, social, physical, intellectual and creative, to young children in less priviledged areas. Funds are raised through the sales of soft toys in Mr Price Home stores nationwide.

Early learning and stimulation is vital for development of children...


Why we do what we do: Children learn more quickly during their earliest years than at any other time, with the period from birth to three years being the most critical in shaping the brain architecture.

A Public Expenditure Tracking Survey recently conducted on ECD by UNICEF and partners, revealed that the most deprived children in publicly-funded ECD programmes is the birth to three-year-old group.

Where we are going: Lookingahead,ourpartnershipwithUNICEFwillcontinuetoprovidecriticalsupportwiththeaimofequitableaccessandqualityECD services for all of South Africa’s young children.

We are also growing our investment in the ECD space by working with feeder crèches in our RedCap Schools in KwaDukuza. Through our future partnership with the Unlimited Child, we will train care givers in those crèches and provide educational toys for the stimulation of the children.


Creating best practice in Physical Education and School Sport in Public Schools...

The YoungHeroes programme aims to develop a passion for regular exercise and healthy lifestyles amongst our children in less privileged schools.

The project aims to create RedCap Centres (a cluster of five schools) in all nine provinces, which will serve as benchmarks for the implementation of Physical Education (PE), extra mural sport and sports leagues amongst primary schools in South Africa. The RedCap Centres are implemented in partnership with the National Department of Basic Education (DOE).

What we did:Since 2006, The RedCap Foundation tested various implementation models with the aim to assist public primary schools to offer weekly PE lessons and school sport. Our test was successfully implemented in over 130 schools in both KwaZulu- Natal and Gauteng province. The project continues to reach thousands of children and more each year as new children enter our schools.

In addition, YoungHeroes lesson plans and teacher manuals were developed and now form part of the resource kit for distribution by the DOE. These were seen as very relevant and aligned to the strategic objectives of DOE’s methodology for educator training in future.

Our aim:


Why we do what we do:According to research studies, children are spending an increasing amount of time in front of computers and televisions. In addition, children in less privileged schools do not participate in structured physical activity due to the lack of resources and trained teachers in their schools.

Where we are going: We are establishing nine RedCap Centres of Excellence, one in each province, which will be used as a base for sharing best practice in PE and school sport. Knowledge will be shared broadly with all other schools, and trained coaches and volunteers will assist in the practical transfer of skills to teachers. In addition, all teachers are trained on Physical Education theory in partnership with Embury Institute of Teachers Training. The RedCap Centres is an initiative implemented in partnership with Sportstec Foundation, the DOE and Embury Institute for Teachers Training.

Lets hear from our partners:National Department of Basic Education

“What started off as an effort to distribute learner and teacher support materials (LTSM) to schools, has developed into something far greater than anticipated. In line with the memorandum of understanding between the Department of Basic Education and the RedCap Foundation, the partnership has created opportunities to enhance the profile of Physical Education within the targeted schools in the identified provinces.”

“Efforts to align the existing YoungHeroes programme to the overall strategic plans of the Department have thus far been very successful. The YoungHeroes Programme currently forms part of the National Physical Education Roll-out plan as they also cater for an extension into extracurricular activities, which are critical for the holistic development and positive experiences of learners at schools. It is the aspiration of the Department of Basic Education to ensure that this partnership brings about the establishment of norms and standards that will serve as a blueprint for future developments within the field of study.”

Norman Mphake

Mondi SAWe partnered with Mondi SA to implement our YoungHeroes programme in rural schools. The partnership has added a lot of value to rural community schools and to the work that Mondi has done through their investments in infrastructure development, and improving maths and science in schools.

“Sport and physical education is also a critical component in the development of children and a vital ingredient for good health. Mondi’s objective is to be a sustainable, socially responsible business that makes a real and lasting contribution to the communities in which it operates. We believe that the YoungHeroes programme contributes to that goal.”

Maurice Makhathini

Assistant Director: Physical Education and Talent IdentificationDepartment of Basic Education

HeadofLandMondi SA


What we did: This year, we undertook a selection process, endorsed by our key partner (the Department of Education’s Ilembe District) where ten school principals were invited to present their school’s needs. Five schools namely Nyakana, St Christopher’s, Kearsney, Zilungisele and Aldinville fitted the criteria. Their principals did an impressive job in convincing the panel of judges that their schools were suitably prepared to participate in the project.

Soon after the selection, baseline evaluations were conducted to establish the needs of each of the schools, their level of performance and functionality and teacher’s knowledge of their subjects. These assessments gave us an indication of the gaps between their realities and the desired level of excellence.

Why we do what we do There are many obstacles faced by South African public schools that result in poor performance of learners. These include a lack of: necessary resources, qualified and knowledgeable teachers (Maths, English and Science in particular), good leadership and parentswhoareactiveintheeducationoftheirchildren.Lowmoraleofteachersandprincipals is due to lack of support, strategic direction and vision by district offices and in some communities, crime and a lack of discipline amongst learners compounds this.

RedCap Schools is our newly launched initiative. An innovative, holistic approach to school improvement, which aims to transform functional public primary schools into “Centres of Excellence”. We assist schools to improve their functionality, curriculum delivery, leadership, teacher and learner performance, parental involvement and ultimately create a culture of excellence where teaching and learning is an extraordinary experience, and learners can achieve exceptional results.

Developing a culture of excellence in Public Schools…

Our aim:

Creating a cultureof Excellence

Eco-friendly environment

Inspirationalleadership

Sportparticipation

Good Governance

Parentalinvolvement

Teachercompetemce

Stakeholdersupport


Where we are going: The project focuses on the following key areas to ensure that teaching and learning is improved in our schools:

School Leadership: Strong and inspirational school leadership is key to the success of our intervention. We will invest in the transformational and transactional capacity building of our five principals.

School Management Teams (SMT): Another vital area of school management is the SMT, which is responsible for the implementation of activities and the delivery of the curriculum.

School Governing Bodies (SGB): SGB will be empowered to take ownership of their schools and support principals, teachers and learners in their pursuit of excellent performance.

Teacher Development: Teachers will undergo intensive training and mentorship by experts in Maths, English, Science and ECD (Grade R) in order to improve their subject knowledge and classroom practices. Subject advisors will also be empowered with skills to monitor and mentor teachers to ensure sustainability of the project.

Parental Involvement: Parents will be skilled to take active roles not only in the education of their children, but also to be involved in academic andnon-academic activities of the school.

The following RedCap Foundation programmes will be incorporated and implemented as components of the RedCap Schools Project:

•YoungHeroesprogrammeinPhysicalEducation and school sport•CompStartprogrammefortheinstallationof computer training rooms •Eco-Schoolsprogramme

IncentivesRedCap Schools are incentivised for improved performance and educational targets reached. We believe that by incentivising good performance, teachers, parents, learners, principals, school management teams and district subject advisors will strive for excellence!


What we did: We continue to partner with non-government organisations (NGO’s) that train and work with the youth. The Foundation places candidates from NGO’s and Further Education and Training (FET) Colleges in Mr Price Group stores, its Distribution Centre and the Financial Services Division.

Upon completion of their work experience, each delegate receives a certificate which they use to help find other employment opportunities. While we do not guarantee employment to candidates, suitable candidates often find job opportunities in stores after completion of their work experience.

We launched the project in seven provinces this year and funded the development of an online database system (JOBLINK)forunemployedyouthinSouthAfrica,whereallthenecessaryinformationpertainingtojobseekingcandidates will be stored. Other businesses will be given access to the system, thereby increasing the exposure of the candidates to employment opportunities.

The process we follow:

Giving unemployed youth an opportunity to gain much needed work experience…

Our aim:JumpStart aims to assist unemployed matriculants between the ages of 18 – 25 with workplace skills. We achieve this by facilitating work experience opportunities for the youth in Mr Price Group stores.

• Trainingofunemployedyouth• ContactRedCapFoundation to arrange work experience for candidates• Receivecertificatesanddistribute to all candidates

NGO’s

• Scheduleworkexperiencewith stores, DC and Financial services• Ensuret-shirtsareavailableat training stores• Receivefeedbackfromlocations after work experience is completed•Keepadatabaseofallpeoplewho completed the work experience• Issuecertificatesandsendthem to NGO’s

RedCap Foundation

• Hostcandidatesforaweekofwork experience• GivefeedbacktoRedCap Foundation on candidates who completed the week •Recruitmentofficertobepointof call for stores and other locations who want to recruit from the database• SharinginformationwithNGO’sabout criteria needed for employment

Mr Price Group


Why we do what we do:Statistics still show a growing number of unemployed youth in our country. This continues to be a challenge for the economy and the well-being of our people. Young people lack the skills and work experience necessary for the job market. The current matric level of education is not sufficient to serve the needs of businesses, and therefore a gap exists between matriculants who leave the school system and job opportunities available.

Where we are going:We are currently creating provincial networks of non-profit organisations, local government and businesses who are focused on training unemployed youth. We aim to impact their lives and create work experience opportunities for the youth in all nine provinces this year.

Emmanuel Mazibuko

Andile MkhizeMandisa Nzama


What we did: Previously our strategy was to implement computer training rooms at schools in KwaZulu-Natal. We have successfully implemented these rooms in 35 schools in the province. It is our view that the Department of Education should sustain these training facilites once they have been established. Unfortunately, despite many attempts to establish this partnership, no commitment has been forthcoming from the Information Technology and Communications (ITC) directorate for the department. This has forced us to re-look at the project strategy.

Why we do what we do:Many schools in low-income communities in our country are unable to offer computer studies due to the lack of computer equipment and trained educators. Information technology makes for better teaching and learning methods and improves learner management and school administration.

Where are we going: From 2011, we will implement training facilities at our RedCap Schools, as the levels of accountability are higher and computer labs will be a part of our plan to establish centres of excellence. Many unemployed youth are unable to access the job market due to their lack of computer literacy skills. Children from the RedCap schools will have the opportunity from a young age to learn basic computer literacy. The RedCap schools will also be able to integrate their teaching with technology, and this will improve the level of teaching in the schools. Due to the sustainable nature of the project, this initiative will continue to benefit new grades in these schools every year.

We aim to assist learners and educators in schools by providing access to computer technology, so as to teach them valuable computer literacy skills.

Continues to bridge the digital divide…

Our aim:


Thats our priority for the 2010 world cup!Which is why Mr Price has teamed up withstrategic partners (Open Door and The DevelopmentHouse) to make our stores SAFE PLACES.At Mr Price stores across the country you’llfind trained GO TO people who will help yourchildren, should they get separated from you.Just look for our staff with SAFE PLACEbadges. That means to find safety, all thatyour lost child needs to do is find a Mr Price store.


The RedCap Foundation launched a bursaries scheme to support the education of Mr Price Group employees’ children ranging from pre-school to tertiary education.

We ensure that all the beneficiaries of the bursaries meet our minimum criteria and are from lower-income communities.

A hand up for deserving children...

“ The bursary has helped my daughter to further herself and give of her best to her studies. It has helped me a lot as I am the breadwinner in the family. I did not have to worry about where to get the fees from.

It was a great relief to me. I’m very grateful to Mr Price Group and RedCap Foundation. My loyalty and dedication to my work paid off for my child. I will continue to give of my best to my proud company.”

Theresa Konar, Mr Price Group Financial Services

Many parents are not able to afford quality education for their children.We extend our help, to assist their deserving children, with funds to access quality education.

BURSARIES


One of the things I learned as a person was to work with others and to respect people, which is very important for my growth.

LETTERS

My name is Nobuhle Mbutho.

I live in Umlazi Township with my son, my five siblings

and my mom.

I trained at World Changer’s Academy, a youth NGO

based in the Valley of a Thousand Hills.

I did my work experience in August 2009 where I spent a

week at Mr Price Apparel in Field street, Durban.

I’m now permanently employed at the Financial

Services Division of Mr Price Group, as a data capturer.

I started off as a temp in November last year. It feels

really good to be an employee, to wake up and go to work

every day and be financially independent.

World Changers with the help of RedCap Foundation

brought me where I am today – the JumpStart programme

contributed a lot to who I am today.

The JumpStart work experience opportunity opened this

door for me and changed my life. I have become a bread

winner at home which has taught me responsibility as

well as thinking of others in my family before I think

of myself and my needs.

To be a hardworking and disciplined person has helped

me a lot, and to have patience in life really- endure

when you are challenged.

I enjoy working with people - I love it, I love my job!


Directors VT Botha-Richards SI Bird Purpose Non-profit organisation focusing on youth development and education Secretary HE Grosvenor (nee Jenvey) Auditors Ernst & Young Inc. Bankers StandardBankLimited ABSABankLimited

Country of incorporation and domicile South Africa Company registration number 2005/002290/08 Non-profit organisation number 053-536-NPO Public benefit organisation number 930 023 271 Business address UpperLevel North Concourse 65 Masabalala Yengwa Avenue Durban 4001

Contents Pages Report of the independent auditor 30 Report of the directors 31 Statement of financial position 32 Statement of comprehensive income 32 Statement of changes in equity 33 Statement of cash flows 33 Notes to the financial statements 34-40 Directors’ approval of annual financial statements

The annual financial statements, which appear on pages 31 to 40, were approved and signed by the directors on 24 June 2011.

VT Botha-Richards SI Bird

ANNUAL FINANCIAL STATEMENTS AT 31 MARCH 2011

(Association incorporated under Section 21)


REPORT OF THE INDEPENDENT AUDITOR

We have audited the annual financial statements of Redcap Foundation, which comprises the directors’ report, the statement of financial position as at 31 March 2011, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, a summary of significant accounting policies and other explanatory notes, as set out on pages 34 to 40. Directors’ responsibility for the financial statements The Foundation’s directors are responsible for the preparation and fair presentation of these annual financial statements in accordance with International Financial Reporting Standards, and in the manner required by the Companies Act of South Africa. This responsibility includes: designing and maintaining internal control relevant to the preparation and fair presentation of annual financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor’s responsibility Our responsibility is to express an opinion on these annual financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the annual financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the annual financial statements, whether due to fraud or error. In making these risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also involves evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of these annual financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Audit opinion Basis for qualified opinion In common with similar organisations, it is not feasible for the entity to institute accounting controls over cash collections from donations and fundraising activities prior to initial entry of the collections in the accounting records. Accordingly it was impracticable for us to extend our examination beyond the receipts actually recorded. Qualified opinion In our opinion, except for the effect on the financial statements of the matter referred to in the previous paragraphs, the financial statements present fairly, in all material respects, the financial position of the association as at 31 March 2011, and the results of its operations and cash flows for the year then ended in accordance with South African Statements of Generally Accepted Accounting Practice and in the manner required by the Companies Act of South Africa.

Ernst & Young Inc. Director - Marise Isebella Delport Registered auditor Chartered Accountant (SA) Durban

24 June 2011


(Association incorporated under Section 21) REPORT OF THE DIRECTORS

Nature of operations The association is a non-profit organisation focussing on youth development and education. Results of operations The results of operations for the year under review are set out in the annual financial statements. Dividends Being an association incorporated not for gain, no dividends can be declared. Directors and secretary Particulars of the present directors and secretary are given on page 29. Events subsequent to year end No material fact or circumstance has occurred between the accounting date and the date of this report. Going concern The directors believe the association is a going concern. The annual financial statements have accordingly been prepared on this basis.


STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2011 2011 2010 Assets Note R R Current assets 3,801,366 1,064,269 Other receivables 5 2,285,551 469,068 Cash and cash equivalents 6 1,515,815 595,201 Total assets 3,801,366 1,064,269 Equity and liabilities

Equity Accumulated fund 3,620,882 563,349

Current liabilities 180,484 500,920 Other payables 7 121,446 450,321 Leavepayaccrual 7 59,038 50,599 Total equity and liabilities 3,801,366 1,064,269

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2011 2011 2010 Note R R Revenue 1.3 and 2 9,407,861 5,607,309 Income Donation income 9,399,337 5,606,279 Mr Price Group bequests 8,600,000 4,800,000 Mr Price Group staff, suppliers and customers 636,846 175,350 Mr Price Group fundraising 162,391 606,433 External party fundraising 100 24,496 Total income 9,399,337 5,606,279

Expenditure 6,350,298 6,219,554 Administration and office expenditure 1,365,152 916,822 Project disbursements 4,985,146 5,302,732 Total expenditure 6,350,298 6,219,554 Profit/(loss) before finance income 3 3,049,039 (613,275) Net finance income 8,494 1,030 Finance income 4 8,524 1,030 Finance costs 4 (30) -

Profit/(loss) for the year 3,057,533 (612,245) Other comprehensive income - - Total comprehensive income/(loss) for the year 3,057,533 (612,245)



STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2011

Accumulated fund R

Balance at 31 March 2009 1,175,594 Total comprehensive loss (612,245) Lossfortheyear (612,245)Other comprehensive income - Balance at 31 March 2010 563,349 Total comprehensive income 3,057,533 Profit for the year 3,057,533 Other comprehensive income - Balance at 31 March 2011 3,620,882

2011 2010 Note R R

Cash inflows/(outflows) fromoperating activities 920,614 (844,521)Cash generated/(utilised) from operations 8.1 912,120 (845,551) Finance income 8,524 1,030 Finance costs (30) - Net increase/(decrease) in cash and cashequivalents 920,614 (844,521) Cash and cash equivalents at the beginningof the year 595,201 1,439,722 Cash and cash equivalents at the end of the year 1,515,815 595,201

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2011


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

1. Accounting policies 1.1 Basis of preparation The financial statements set out on pages 31 to 40 have been prepared on the historical cost

basis except where otherwise stated, and incorporate the following principal accounting policies which conform to International Financial Reporting Standards (IFRS) and which are consistent with those applied in the previous year.

1.2 Adoption of new Standards and changes in accounting policies In the current year the Foundation adopted all the new and revised Standards and Interpretations issued by the International Accounting Standards Board (IASB), the International Financial Reporting Interpretations Committee (IFRIC) of the IASB and the Accounting Practices Board (APB) that are relevant to its operations and effective for annual reporting periods beginning on or after 1 January 2010.

The following Interpretation was adopted during the year and did not lead to any changes in the

Foundation’s accounting policies: Statement, Interpretation or Standard Effective for annual periods beginning on or after

• ImprovementstoIFRS 1January2010 1.2.2 Statements, Interpretations or Standards in issue but not yet effective

At the date of authorisation of these financial statements, the following Statements, Interpretations and Standards were in issue but not yet effective:

Statement, Interpretation or Standard Effective for annual periods beginning on or after

• ImprovementstoIFRS 1January2011• IFRS1AmendmentsforAdditionalExemptionsforFirst-timeAdopters 1July2010• IFRS7Disclosures-TransfersofFinancialAssets(AmendmentstoIFRS) 1July2011• IFRS9FinancialInstruments 1January2013• IFRS10ConsolidatedFinancialStatements 1January2013• IFRS11JointArrangements 1January2013• IFRS12DisclosuresofInterestsinOtherEntities 1January2013• IFRS13FairValueMeasurement 1January2013• IAS24RelatedPartyDisclosure 1January2011• IAS12DeferredTax-RecoveryofUnderlyingAssets 1January2012

The directors anticipate that the adoption of the above in future periods will have no material financial impact on the financial statements of the Foundation and will only result in additional disclosure requirements with the exception of IFRS 9. The impact of this new statement is currently being assessed. These Statements, Interpretations and Standards will be adopted at the respective effective dates.

1.3 Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the

Foundation and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received.

Donation and fundraising income

Donation and fundraising income is recognised when the income accrues to the Foundation.


(Association incorporated under Section 21) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

Interest income Revenue is recognised as the interest accrues (using the effective interest rate method that is the

rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset).

1.4 Expenditure recognition Expenditure is recognised in profit or loss as incurred. Project disbursements comprise project travel

expenses, catering costs, training, research, courier costs, uniforms, printing and stationary costs.

1.5 Financial instruments Financial instruments recognised on the statement of financial position include cash and cash

equivalents, other receivables and other payables. Financial instruments are initially measured at cost, which is the fair value of the consideration given or received including transaction costs when the Foundation becomes a party to the contractual provisions of the instrument and any subsequent measurement adjustments are made in accordance with the specific instrument related provisions of IAS 39 - Financial Instruments–Recognition and Measurement as follows:

Other receivables Other receivables are classified as loans and receivables originated by the Foundation and

are subsequently measured at amortised cost (using the effective interest rate method) less any impairment thereon. Other receivables are short term in nature and the effect of imputing interest is considered immaterial.

Cash and cash equivalents

These are classified as loans and receivables originated by the Foundation and are subsequently measured at amortised cost. Cash and cash equivalents comprise cash at bank and cash on hand.

Other payables Other payables are classified as financial liabilities and are subsequently carried at amortised cost

using the effective interest rate method. Payables, are short term in nature and the effect of imputing interest is considered to be insignificant.

Derecognition of financial assets and liabilities a) Financial assets

A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised where: • therightstoreceivecashflowsfromtheassethaveexpired;

• the Foundation retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass-through’ arrangement;or

• theFoundationhastransferreditsrightstoreceivecashflowsfromtheassetandeither (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset .

Where the Foundation has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the enterprise’s continuing involvement in the asset.



Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the enterprise could be required to repay.

b) Financial liabilities A financial liability is derecognised when the obligation under the liability is discharged or

cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially

different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

Impairment of financial assets The Foundation assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

a) Assets carried at amortised cost

If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset shall be reduced either directly or through use of an allowance account. The amount of the loss shall be recognised in profit or loss.

The Foundation first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If it is determined that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairments.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can

be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed. Any subsequent reversal of an impairment loss is recognised in profit or loss, to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date.

1.6 Leave pay accrual The leave pay accrual comprises the leave entitlement in respect the staff of the Foundation.

Employee benefits in the form of annual leave entitlements are provided for when they accrue to employees with reference to services rendered up to the reporting date. It has been calculated based on leave days due at reporting date and the cost to company per employee.


(Association incorporated under Section 21) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

1.7 Taxation

Current income tax The Foundation has been approved as a public benefit organisation in terms of Section 30 of the Income Tax Act and the receipts and accruals are exempt from Income Tax in terms of Section 10(1)(cN) of the Income Tax Act.

Value added tax Expenses and assets are recognised net of the amount of value added tax.

In terms of the Value Added Tax Act, the Foundation is exempt from value added tax on donations received.


2011 2010 R R 2. Revenue Revenue is comprised of the following: Donation income 9,399,337 5,606,279 Finance income 8,524 1,030 9,407,861 5,607,309 3. Profit/(loss) before finance income Net profit/(loss) before finance income is stated after taking the following into account: Expenditure Employment costs 894,982 654,748 Service providers 2,807,829 3,456,499 4. Finance income and finance costs Finance income received Interest received from financial institutions 8,524 1,030 Finance costs Interest paid to financial institutions 30 - 5. Other receivables VAT receivables 23,770 58,788 MrPriceGroupLimited 2,261,781 410,280 2,285,551 469,068

6. Cash and cash equivalents Current bank accounts 1,515,815 595,201 7. Other payables Accruals 121,446 450,321 Leavepayaccrual 59,038 50,599 180,484 500,920 Accruals are non-interest bearing and are normally settled on presentation of invoice.




8. Note to the statement of cash flows

8.1 Cash generated from/(utilised by) operations Net income/(loss) for the year 3,057,533 (612,245) Finance income (8,524) (1,030) Finance costs 30 - Non-cash Items 8,439 34,142 3,057,478 (579,133) Working capital changes (2,145,358) (266,418) (Increase)/decrease in other receivables (1,816,483) (344,455) Decrease in other payables (328,875) 78,037

Cash generated/(utilised) from operations 912,120 (845,551) 9. Financial instruments The Foundation’s principal financial instruments comprise cash and short-term deposits. The Foundation has various other financial assets and liabilities such as other receivables and payables, which arise directly from its operations. It is, and has been throughout the year under review, the Foundation’s policy that no trading in financial instruments shall be undertaken. The Foundation does not trade. 9.1 Liquidity management LiquidityriskisdefinedastheriskthattheFoundationwouldnotbeabletosettleormeet its obligations on time or at a reasonable price. The Foundation has minimised its liquidity risk by ensuring that it has adequate banking facilities. The Foundation’s financial liabilities are all short-term in nature and hence no further maturity analysis has been performed. The Foundation expects to meet its obligations from existing cash reserves and from operating cash flows. 9.2 Fair value of financial instruments Fair value is defined as the amount for which the instrument could be exchanged in a current transaction between knowledgeable willing parties in an arms-length transaction, other than in a forced or liquidation sale. The fair values of the Foundation’s financial instruments, which principally comprise bank and cash balances, receivables and payables approximate their statement of financial position carrying values.



9.3 Classification of financial instruments Loans and receivables 2011 2010 R R

Current assets Other receivables 2,285,551 469,068 Cash and cash equivalents 1,515,815 595,201 Total 3,801,366 1,064,269

Financial liability at amortised cost 2011 2010 R R Current liabilities

Other payables 121,446 450,321 121,446 450,321

9.4 Credit risk management Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument leading to a financial loss. The Foundation is not exposed to credit risk as it does not have trade receivables. 9.5 Interest rate risk management Net finance income represents an insignificant amount and hence no sensitivity anlaysis has been presented. 10. Related parties


Donations to the value of R8 600 000 (2010: R4 800 000) were received from Mr Price Group Limitedduringthecurrentfinancialyear.TheFoundationwasestablishedtocarryoutCorporateSocialInvestmentInitiativesofMrPriceGroupLimited.

Inaddition,MrPriceHomeandSheetStreetdivisionsofMrPriceGroupLimitedundertookfundraising projects on behalf of the Foundation, raising funds of R158 996 (2010: R375 676) and R395 (2010: R8 032) respectively.

ThebalanceowingbyMrPriceGroupLimitedasat31March2011amountstoR2,262,781(2010: R0)


ANNUAL REPORT 2011

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