Content

1. Independent Development TrustPresentation toPortfolio Committee for Public Works2010/12 Corporate Plan23 June 2009

2. Content • Compliance Statement • Overview • 2010/12 Corporate Strategy • Partnerships • Long-term Sustainability • Concluding Comments

3. Compliance Statement • 2010/12 Corporate Plan is prepared in compliance with: • Chapter 29 of the Treasury Regulations; • Section 52 of the PFMA, which enjoins government departments and public entities to prepare a three-year Corporate Plan; and, • The structure complies with National Treasury’s 2008 Practice Note on the submission of Corporate Plans.

4. Overview

5. Overview • The IDT is • Trust • Development Agency • established in 1990. • Cabinet decision, March 1997: • "The IDT must be transformed into a government development agency that will implement projects which are commissioned by government departments. It must cease to be a civil society organisation, an independent agency or a funding agency • Public Finance Management Act: Schedule 2 Public Entity • Accounting Authority: Board of Trustees • Executive Authority: Minister of Public Works

6. Further refinements to Mandate • 1998: Amended Deed of Trust • Cabinet October 2000: Support government with coordinated management of the ISRDP • Presidency: Support ASGISA: March 2006 • Cabinet November 2008: Programme Management Agency for the Jobs for Growth Programme

7. How we understand our mandate • Support the social policy agenda : • halving poverty and unemployment (creation of decent work an sustainable livelihoods) • measurable improvements in the quality of life; and, • social cohesion • IDT established as a redistributive mechanism • Hence we support all spheres of government with • planning and implementing the national development agenda with particular reference to the eradication of structural intergenerational poverty, employment creation; sustainable development and sustainable livelihoods • monitoring the effectiveness of interventions • deriving, documenting and sharing the lessons • Includes interventions initiated, designed and funded by the IDT

8. Changingroles: responsive organisation • Over the 19 years of its existence, the IDT’s role in the development sector has shifted: • grant making agency • programme implementation agency • development planning & implementation • development integration and coordination • Programme design • Social facilitation • Demonstrated the capacity to ‘reinvent’ ourselves in response to the environment- remain relevant to our mandate

9. Business Model • Anchored in the IDT’s • Commitment to the eradication of poverty, unemployment and alienation of majority trapped in the cycle of chronic intergenerational poverty; and, • Confidence in the social policy agenda • Belief that no single institution can do it alone • Government has the resources and the political will • Private sector, donors: do not have reach/experience • Poor: do not have capacity or power to access resources • Hence there is a Development Gap: need a vehicle

10. SERVICE AGENCIES Donors, Government, Private Sector: Support institutions with resources to reach their target groups DEVELOPMENT GAP DEVELOPMENT GAP DEVELOPMENT GAP Improve capacity of people and their institutions to reach services TARGET POPULATION IDT Business Model

11. Vision and Mission • Vision • To be the leading knowledge-based development agency • Mission • The IDT, with strategic partners, will enable poor communities to access resources, and to recognize and unlock their own potential to continuously improve the quality of their lives

12. Core Business Areas • Development Programme Management • Harnessing/Leveraging Resources • Institutional Delivery & Capacity Building • Knowledge Management • Social Facilitation

13. 2010/2030 Strategic Vision

14. Executive Summary: Page 3-6 • Introduction • Mandate: Building on the IDT’s effectiveness as a redistributive mechanism, the IDT was constituted as a pubic entity to support government with the eradication of poverty. • This mandate remains unchanged, and the IDT’s corporate strategy is grounded in this mandate and its role as a public entity and development agency • Development Perspectives • Development Agencies: Historically established to drive transformation and innovation. IDT’s track record confirms its effectiveness in this regard • “Development is about achieving the full set of human aspirations and about an increase in the autonomous competence of society to sustain itself and be prosperous under changing conditions • Human centered development & poverty eradication: social policy objective since 1994. However limited success with eradicating chronic poverty • Hence draft long-term comprehensive anti-poverty strategy • 2010/30 Strategic Vision locates IDT, established development agency and redistributive mechanism with national presence and reach, as a vehicle within the delivery value chain of a long-term comprehensive poverty eradication strategy.

15. Executive Summary cont. : 2010/30 Strategic Vision • Government expectation: Anti-Poverty Strategy will reduce dependency on the state & establish sustainable livelihoods. However, this demands participation of poor households and communities & an appropriate balance between a demand–driven and supply-driven approach, which is a fundamentally different approach. •  IDT’s 2010/30 Strategic Vision is premised on the understanding that the eradication of chronic intergenerational poverty requires a long-term strategy, and the 2010/12 Corporate Strategy is the short-term plan for the implementation this Strategic Vision. • The 2010/30 Strategic Vision embodies a number of principles: • shaped by the aspirations of & indicators for well-being as expressed by poor households and communities. • Peoples’ participation • IDT will strengthen its social facilitation and community mobilisation role • Partnerships with institutions with complementary mandates • Retain and strengthen the delivering on public-mandate programmes (but at full cost recovery.) Invest IDT’s financial resources in community-mandated programmes, which will include, research and documentation; design and implementation of community-driven projects; institutional capacity building; and resource mobilisation.

16. Executive Summary cont. • Strategic Objectives • To attain sustainable livelihoods through people centred development interventions • To pioneer innovative development solutions • To ensure excellence in service delivery

17. Sustainable Development Solutions Figure 1: Together, Eradicating Intergenerational Poverty IDT Methodologies & Resources Partner Resources COMMUNITY ASPIRATIONS & ASSETS IDT social facilitation & mobilisation igniting innovation

18. Overview : Page 7-17 • Historical Background: (covered in an earlier slide Strategy) • Development Sector Overview: discussed in previous slide on Business Model. In addition refers to the recommendations of the DFI Review, e.g., “the IDT is broadly meeting its mandate.” • Situational Analysis: • Universal compact to eradicate poverty & the national development agenda affirms international development priorities, e.g., MDGs • MDGs are minimalist, e.g., the target for the goal of halving the number of people living in extreme poverty, is earning 1$ (US) per day. • Draft Anti-Poverty Strategy fundamentally shifts from the minimalist MDG targets and indicators towards addressing chronic, intergenerational poverty at household level and which takes account of the racial, spatial and gender dimensions of poverty • Chronic intergenerational poverty is “poverty that is passed from one generation to the next, that is, the most severe form of chronic poverty, can be assessed by comparing the wellbeing of two generations within the same household.” • Based on international best practices we argue for the appropriate institutional mechanisms & IDT’s positioning as the dedicated development agency supporting government with the implementation of a comprehensive, integrated, anti-poverty strategy

19. Overview cont.: Strategic Niche: • As a flexible and innovative development agency and in its quest to remain relevant, the IDT’s strategic focus has shifted: • 1990-1998: independent, civil society, grant-making agency • 1999-2003: Focus in the 1st Decade of Democracy -supply-driven development delivering the RDP through, for example, social infrastructure and other development outputs.Since the 1st-year of becoming a public entity the IDT managed a portfolio of social infrastructure and social development programmes almost exclusively in rural areas of in poorer provinces • 2004-2007: Vision for the 2nd Decade of Democracy (2004-2014) - halving poverty and unemployment, economic integration of marginalised communities and groups, measurable improvements in the quality of life and social cohesion. Hence in 2004 IDT responded with a strategic shift in focus from development outputs to designing and delivering development outcomes and impact. • 2007-09:Based on an analysis of the environment, the IDT developed a more focused interpretation of its role & Corporate strategy was targeted at women as the primary beneficiaries, partners and participants • 2010/30: The IDT redefined its role and will invest its resources exclusively in the eradication of intergenerational poverty • In spite of these strategic shifts, the IDT’s business model remained anchored in the eradication of poverty, unemployment and social exclusion

20. Overview cont.: Strategic Vision • Long-term (15-20 yrs) : Best practices in successful poverty eradication typically: only able to report on impact after a period of 15-20 years; recognises the feminisation of poverty & role of women. IDT is established as • the fully fledged implementation arm in the delivery of the Anti-Poverty Strategy; • the development agency which designs and pilot innovative approaches to sustainable development and poverty eradication; and • Evaluates, documents and packages models such that it can be absorbed by line functions and the IDT can initiate innovation process in a new development challenge • The country would have fundamentally transformed the face of poverty. No further need for a development agency focusing on the eradication of intergenerational poverty • Medium term (15-10 yrs): The IDT • Is proving its effectiveness as the innovation arm of government’s poverty eradication and sustainable development delivery system. • Developing and testing flexible, responsive systems and processes for innovation and replication. • Has changed its portfolio from the current dominance of social infrastructure. The latter is one of the methodologies enabling entry into communities

21. Overview cont.: Strategic Vision • Short Term (10-5 yrs): Currently 95% of the IDT’s budget and 85% of its effort is dedicated to social infrastructure delivery. The organisation will • Fundamentally shift its service delivery models and will no longer subsidize public-mandate social infrastructure delivery. This service will be undertaken at full cost recovery. • Become more selective about the programme management agreements it enters into, giving preference to those which have potential for building innovative community-based models and for building the capacity of civil society organisations and community-based structures to influence, participate and sustain development investments. • Immediate Future (0-5 yrs): 2010/12 is • viewed as the short-term period of the 2010/30 Strategic Vision • 2009/10 as the entry year • Execute a turnaround strategy and the strategies, strategic objectives and targets in the 201/12 Corporate Plan are thus directed at achieving such a turnaround.

22. Strategy: Page 17-22 • Key roles: How will we do it? • Advocacy • Operational Programmes • Best practice and capacity Building

23. Strategy cont.: Key Components • Leverage: • Funds: multi-lateral funding agencies, private global donor foundations, private sector (CSI) and government • Political Principals • Communities (needs further research) • Households: NGO’s & CBOs: Wider coverage and reach • Coordination: learning from & more effectively than in ISRDP • Integration: SLA principles as indicators • Value-Add/ Competitive Advantage: to be embedded in the corporate culture • Responsiveness • Political legitimacy & recognition • Programme packaging & management • Strategic partnerships to enhance development impact • Championing role • Reach & engaged in communities

24. 2010-30 Strategy: Strategic Focus Areas • Advocacy: Influencing the overall debate and development landscape. The development of: • The national anti-poverty strategy • Provincial anti-poverty strategies and plans • Municipal anti-poverty plans and commitments to targets, and • Programme specific Advocacy • Programmes • Public-mandate Social Infrastructure • Community-mandated Social Infrastructure • Community-based Investment mobilization • Catalytic Programme Management Support • International Technical Support & Exchange Programme • Strategic Interventions • Shareholder directed programmes

26. Level of Effort + Budget Governance& Contingency: 15%

27. National Turnover Trend

28. Past Performance

29. 2010/30 Strategic Shift Effort

30. 2010/30 Strategic Shift Effort in Context

31. Key Performance Indicators: Page 23-26 • Key Result Areas, Key Performance Areas and the Key Performance Indicators (KPIs): page 23-25 • Appendix 1: 2010/12 Corporate Business Plan. ..\..\..\2010-12 CORPORATE STRATEGY\CORPORATE PLAN\2010-12 Corporate Business Plan.docx • KPIs= measures by which the organisation’s success in achieving its objectives will be measured. • Key assumptions: included as footnotes to provide clarity on the parameters of the KPIs.

32. Key Performance Indicators: Page 23-26 • The IDT has three strategic objectives: • To attain sustainable livelihoods through people centred development interventions • To pioneer innovative development solutions • To ensure excellence in service delivery

33. IDT Aligned to the MTSF and National Priorities….

34. IDT Aligned to the MTSF and National Priorities….

35. IDT Aligned to the MTSF and National Priorities….

36. IDT Aligned to the MTSF and National Priorities….

37. 2010/12 Corporate Plan: Key Content Issues • Governance Structures: (Pgs 26-28): Shareholder(Shareholder Compact attached as Appendix 2); Board of Trustees; and Management structures • Financial Plan (Pgs 29-34): Information on planning approach; projected income statement, balance sheet and cash flows; and, capital expenditure plan. • Risk Management Plan: (Pgs 35-40) • Fraud prevention Plan (page 41) • Materiality Framework (Pgs 42-44): tool to ensure efficiency and accountability by determining the benchmarks against which particular matters will be reported or presented for approval. • Shareholder Compact (Pgs 62-77)

38. 2010/12 Corporate Plan: Other Supporting Frameworks • Human Resources Plan: Page 45-47 • Employment Equity Plan: Page 47-50 • Environmental Plan: Page 51-53 • Communications Plan: Page 53-56 • Other Appendices: • Curriculum Vitae: Board of Trustees • High-Level Organogram • Curriculum Vitae: Executive Management

39. Concluding Comments on Corporate Plan • 2010/30 Strategic Vision concluded in Aug-08. However, demonstrates the IDT’s effective anticipation of the changes in the social policy agenda • Have already begun to review KPI’s and targets to ensure that we support the POA. E.g., submission to Social Cluster to deliver 9 functional schools (IDT funded Mud Schools Programme); implementing agency for the non-state sector of EPWP 2

40. 2010/12 Budget

41. Main considerations DFI Review: (Business Case & expected funding) Strategic shift Existing financial capacity over the MTEF period

42. Budget: Main features Expenditure (excl. provisions) up by R29.7 million (9.1%) Investment income down by R16.3 million (17.9%) Management fees up by R14.5 million ( 152%) Funding drawn from capital base up by R36.2 million ( 10.4%) before prior year funding of Mud Schools

43. Budget Apportionment

44. Standard cost categories R mil % Salaries 187.5 48.9 (incl. training) Consultancy fees 50.25 13.1 Travel & accommodation 37.41 9.7 (Air and land) Office rent, impr. 13.57 3.6 and rates & taxes Tel. and data lines 12.59 3.4 Media and Communic. 8.11 2.1 Other 55.63 14.5

45. Budget shifts in line with strategic shift R 51.5 million ring fenced for direct community driven programme interventions Management fees adjusted upwards in line with new contractual expectations Material expenditure increases not possible (reliance therefore on transformation of operations)

46. Guidelines for Outer Years • Turnover expected to stabilize • Salary increase aligned to expected rate of inflation • Contractual escalations • Inflation projected 7% • Community mandated poverty eradication programmes maintained for full period • Management fees increased to achieve cost recovery in 5 years • Non cash items provided for

47. MTEF Comparative Figures

48. Budget: Concluding Comments Total budget increase is conservative and is in line with approved budget guidelines Allocations can be afforded in MTEF period Limited capacity exist to significantly impact on revenue generating capacity in the short term Cost efficiency of project initiated

49. Partnerships

50. Partnerships Partnerships are inspired by IDT’s mission to work “with strategic partners, [to] enable poor communities to access resources, and to recognize and unlock their own potential to continuously improve the quality of their lives”. These have included: International corporation partnerships directed at improving the capacity of the IDT and state to deliver such as Kellogg Foundation and the Republic of Cuba Civil Society partnerships directed at gender mainstreaming and women’s empowerment including the Progressive Women’s Movement of SA, SA Women in Dialogue (SAWID), South African Women in Construction (SAWIC) those directed at promoting economic participation, social cohesion and sustainable livelihoods which have included economic sector partners including small and medium sized contractors, the NEF, and Lonim Platinum as well as civil society organisations such as Khanya and SOMAFCO X Consequently the IDTis in the process of finalising its stakeholder and resource mobilisation strategies with a view of integrating and synergizing its relations