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Presentation to the Select Committee on Trade and International Relations

Presentation to the Select Committee on Trade and International Relations. 12 September 2012. Presentation Outline. Introduction and Overview Performance: Key Trends Achievements Allocations per Sector / Province 2012/13 Budget A llocation per Sector Challenges Corrective Measures

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Presentation to the Select Committee on Trade and International Relations

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  1. Presentation tothe Select Committee on Trade and International Relations 12 September 2012

  2. Presentation Outline • Introduction and Overview • Performance: Key Trends • Achievements • Allocations per Sector / Province • 2012/13 Budget Allocation per Sector • Challenges • Corrective Measures • Lessons Learnt • Concluding Remarks • Discussion

  3. Introduction Regulation National Lottery: Operated by Gidani (34% of sales to NLDTF) Other lotteries Distribution Process applications and make payments Charities 45% Arts 28% Sports 22% Miscellaneous 5% DAs adjudicate applications and make grants in line with criteria

  4. NLDTF Revenue & Disbursement1st April 2000 to 31st March 2012(R million)

  5. NLDTF Disbursement per Sector1st April 2000 to 31st March 2012(R million)

  6. NLDTF Revenue & Disbursement1st April 2000 to 31st March 2011(R million)

  7. Surpluses • Surpluses are created by a mismatch between inflows and outflows • Inflows dependent on Sales are steady but not predictable • Outflows dependent on • Number of applications received • Number of applications that are compliant • Number of applications that are deserving are also not predictable • A large portion of the funds in the trust is always committed to beneficiaries • In 2011/2012 demand was 40 times supply • NLDTF cannot disburse more than it receives 

  8. Performance: Key Trends • Lottery sales: • Only source of funding. • Grown from R3.08bn in 2001 to R4.94bn in 2012 • Significant dip in 2008 (R1.6bn) • Fund is only now beginning to recover at levels it was edging towards in 2006/7 • Admin Ratio: 2.7% of all available funds on Administration since inception • One of the largest (if not the largest) funders of NPOs , CBOs in SA

  9. Performance: Key Trends • Cash disbursements in the 4 most recent years: • 2009: R0,9 billion • 2010: R1,9 billion • 2011: R3,6 billion • 2012: R2,05 billion • This acceleration of disbursements (resulting in reduction in reserves) reflects improvements in the distribution process • The above plus the fact that income from ticket sales has remained more or less ‘static’ for same period, explains the difficulty that some stakeholders have to understand the ‘reduction’ in available funds

  10. Achievements • More than 15 billion allocated for good causes between 2000 & 2012 • More than R13 billion cash disbursed between 2000 and 2012 • Applications received doubled in 2011/12 following Road shows/capacity building workshops • Provincial consultations and National Indaba during June 2011, attended by 1,500 delegates • Improved turnaround times over last 3 years: in particular post-adjudication phase

  11. NLDTF Disbursement1st April 2011 to 31st March 2012(R million)

  12. NLDTF AllocationsProvincial Spread 2011/2012 (R million)

  13. NLDTF Allocations..Provincial Spread Comparison

  14. Budget for 2012/2013

  15. Current Status as at 31 Aug ’12 (R’000)

  16. Challenges • Applications based funding model • Total dependence on NLDTF for existence of organisations • Expectation of recurrent and ‘permanent’ refunding effectively crowding out new entrants from being considered • Turnaround times

  17. Challenges • High rate of declines (due to non-compliance) • Fraudulent applications / fund use • Provincial allocation / spread inequities • Emotive publicized threats of downsizing operations and services or closure because of the NLDTF has not allocated a grant

  18. Corrective Measures

  19. Administrative Actions • Improve access to application documents (additional distribution points) • Introduction of helpdesks • Increase timeframe for Call for Applications to submission deadline (8-12 weeks) • Enhancement of NLB website (online tracking facility) • In-house scanning of all applications • Adjudication manual for DAs • Capping of allocations to facilitate more equitable distribution

  20. Legislative Changes • Other challenges were as a result of gaps in legislation and review of the Act in process and is expected to address inter alia: • Responsibilities of the Minister, Board and Agencies • Improving efficiency in distribution of funds • Accountability of distributing agencies • Size of the Board • Composition of the distribution agencies • Enhanced conflict of interest measures • Proactive funding to complement application based funding • Possible extension of categories of areas to be funded • Provision of an appeals mechanism

  21. Future Plans • Roll-out of regional offices to all provinces • Increase service offerings at Provincial offices • Simplified application process for smaller grants • Online application submission facility • Impact study to inform strategic funding model

  22. Lessons Learnt • Need to formulate a much clearer funding policy for the NLDTF with a focus on “impact” rather than “giving” • More proactive/strategic approach to communication-and stakeholder relations • More concerted effort to publicize funded projects and achieve a balanced view

  23. Concluding Remarks • Appreciate the opportunity to account to and engage with the Select Committee as the elected representatives of the communities we are appointed to serve • Will appreciate • the advise and inputs of the Committee • An opportunity to provide more information at this or a subsequent meeting

  24. Discussion

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