PURPOSE

1. PRESENTATION OF THE NDA 2013/14 ANNUAL REPORT TO THE PORTFOLIO COMMITTEE OF SOCIAL DEVELOPMENT 17 OCTOBER 2014

2. PURPOSE To present the NDA 2013/14 Annual Report to the Portfolio Committee of Social Development for consideration.

3. CONTENT • PURPOSE • INTRODUCTION • Role and Mandate • Mission, Vision and Values • Organisational Structure • NDA STRATEGIC FOCUS AREAS • Strategic Goals and Objectives • Board Priorities • CHANGES TO PLANNED TARGETS AND PERFORMANCE INDICATORS • PROGRAMME PERFORMANCE • SUMMARY OF 2013/14 AUDITED PERFORMANCE • AUDITED FINANCIAL STATEMENTS AS AT 31 MARCH 2014

4. NDA 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 CSOs that provide services to poor communities. ROLE AND MANDATE ACCORDING TO THE ‘ACT’

5. NDA MISSION, VISION AND VALUES

6. ORGANISATIONAL STRUCTURE

7. HUMAN CAPITAL • The NDA currently has a staff compliment of 138. The diagram below illustrates the percentages of mandate vs. support staff within the NDA programmes.

8. NDA STRATEGIC FOCUS AREAS The NDA focused on the following programmes in support of government priority areas on poverty eradication: • Early Childhood Development • Food Security • Income Generation (Programmes and Projects) • Capacity Building

9. STRATEGIC GOAL AND OBJECTIVES 2013/14 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

10. BOARD PRIORITIES

11. BOARD PRIORITIES Parallel to the implementation of the NDA APP, the Board identified some priority areas that would complement NDA’s service delivery; namely: • Implementation of Early Childhood Development (ECD) Campaign • Expansion of the Capacity Building Programme • Implementation of NDA Programme Management Unit (PMU) • Conversion of NDA Provincial Offices into Advisory Centres • Increase NDA Brand Visibility

12. IMPLEMENTATION OF EARLY CHILDHOOD DEVELOPMENT (ECD) CAMPAIGN • During the year under review, the NDA with the leadership of the Minister of Social Development and the Board launched the Adopt an ECD Campaign which was aimed at the NDA leveraging its limited capacity through partnerships with different stakeholders to contribute to implementation of an ECD programme nationally. • Through these partnerships an amount R560K was solicited from private donors. • The coordination of the Annual SA ECD Awards has been handed over by ABSA to the NDA. The NDA will be hosting the event for the first time in March 2015.

13. CAPACITY BUILDING PROGRAMME – DSD PILOT PROJECT • The programme was funded by five provinces - North West, Northern Cape, Eastern Cape, Limpopo and KwaZulu Natal • 2 059 CSOs and NPOs were capacitated in Governance, Financial management, Project management , Resource mobilisation and Conflict management • 4 384 members of CSOs and NPOs staff attended capacity building interventions • 236 ECD practitioners enrolled in a NQF level 4 ECD training programme • 80% improvement has been reported in knowledge and practice in areas they were capacitated on thus far

14. CAPACITY BUILDING – ACHIEVEMENT AGAINST TARGET

15. STAKEHOLDER RELATIONS & PMU – 2013/14 SIGNED AGREEMENTS

16. ESTABLISH NDA ADVISORY CENTRES PILOT SITES During the year under review the NDA established 28 Advisory centres which served as repository for information to stakeholders on NDA, SASSA and DSD. These will also cover information on Government programmes. The table below depicts the geographic spread of the centres;

17. ENHANCING NDA VISIBILITY AND BRAND • Publicity to the value of R3.1m was solicited in various electronic and print media platforms for NDA funded projects and the Adopt-an-ECD campaign • Good relations and partnerships established with media houses such as The New Age, SABC 2. ANN7, Vuka Afrika and Top Women in Business and Government. • Social media platforms (Twitter and Facebook) were used to improve NDA visibility.

18. PROGRAMME PERFORMANCE

19. SUMMARY OF 2013/14 NDA PERFORMANCE INFORMATION NDA was audited on thirty one (31) targets as opposed to initial thirty four (34). An amendment to request deferment of three (3) targets to 2014/15 was approved by the Minister of Social Development. • Twenty nine (29) – Targets were achieved • Two (2) – Targets were not achieved • Three (3) – Targets were deferred to 2014/15 FY

20. CHANGES TO PLANNED TARGETS AND PERFORMANCE INDICATORS Programme 4: Governance and Administration

21. PROGRAMME 1: DEVELOPMENT MANAGEMENT To carry out programmes or projects aimed at meeting the development needs of poor communities

22. PROGRAMME 1: DEVELOPMENT MANAGEMENT * Not achieved

23. PROGRAMME 1: DEVELOPMENT MANAGEMENT

24. PROGRAMME 1: DEVELOPMENT MANAGEMENT

25. PROGRAMME 2: RESEARCH AND DEVELOPMENT To undertake research and publications aimed at providing the basis for development policy

26. PROGRAMME 2: RESEARCH & DEVELOPMENT

27. PROGRAMME 2: RESEARCH & DEVELOPMENT

28. PROGRAMME 3: CAPACITY BUILDING To strengthen the institutional capacity of civil society organisations

29. PROGRAMME 3: CAPACITY BUILDING

30. PROGRAMME 4: GOVERNANCE AND ADMINISTRATION To promote and maintain organisational excellence and sustainability

31. PROGRAMME 4: GOVERNANCE AND ADMINISTRATION * Not achieved

32. PROGRAMME 4: GOVERNANCE AND ADMINISTRATION

33. FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2014

34. SUMMARISED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2014

35. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE • REVENUE (RESOURCES) 1.1 Recognised Transfer Revenue is made up as follows: The growth in transfer revenue of 18% year on year was mainly driven by increase in funds mobilised from partners and government departments. The NDA allocation from DSD increased by only 3% from R 161 million in 2013 to R 171 million in 2014. 1.2. Finance Income Interest income increased by 2% year on year due to reducing cash balances. 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)

36. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE 2. TOTAL EXPENSES Total expenses increased by 10.9% year on year driven mainly by the increase in mandate expenses. 2.1 MANDATE COSTS 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 R72.9 million per Income statement are made up as follows:

37. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE • Mandate Expenditure • During the year under review, 64% (R155m) of the total cost (R241m) was spent on direct programmes mandated by the NDA Act (Service delivery). • This ratio of 64% was driven mainly by projects implemented on behalf of third parties totalling R 44m (2013 R16.6m). • The spending on capacity building increased by massive 142% in line with increased strategic focus towards building the capacity of Civil Society Organisations. • Included in the R44m of third party projects was R30.2m spent on the NPO capacity building programme implemented on behalf of provincial departments of Social Development. • A total of R37m was spent towards building the institutional capacity of NPO’s and CSO’s

38. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE 2.2 ADMNISTRATION COSTS • During the period under review 36% (R85.9m) of the total cost (R241m) was spent on administration. • Administration Expenses are driven mainly by compensation of employeesand infrastructure costs. • Year on year the admin costs have increased by 7% which is in line with increase in CPI

39. STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2014

40. COMMENTARY ON STATEMENT OF FINANCIAL POSITION 3. Cash and Cash Equivalents The Cash and Bank balances held are committed as follows as follows: The 15,7% increase in cash balances is largely due increase in cash managed on behalf of third parties

41. COMMENTARY ON STATEMENT OF FINANCIAL POSITION 4. Exchange Receivables 5. Liabilities The Cash and Bank balances held are committed as shown in 1. above.

42. CASH-FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2014

43. Thank you THANK YOU