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Presentation to the Select Committee on Trade and International Relations

Presentation to the Select Committee on Trade and International Relations. Professor Alfred Nevhutanda (Chairperson) & Professor Vevek Ram (CEO) October 2011. Agenda. Overview of the National Lottery and its components the National Lotteries Board and its functions

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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 Professor Alfred Nevhutanda (Chairperson) & Professor Vevek Ram (CEO) October 2011

  2. Agenda • Overview of • the National Lottery and its components • the National Lotteries Board and its functions • The current funding model • Criteria used to Disburse funds • Achievements and Challenges

  3. The National Lotteries Act • Establishes the National Lotteries Board & Specifies its Functions • Sets up the process for awarding the Licence • Establishes the National Lottery Distribution Trust Fund (NLDTF) • Sets up the Distributing Agencies & the process of Distribution • Sets up process for Monitoring & Regulating • Private & Society Lotteries • Promotional Competitions

  4. Functions of the Board • Advise the Minister • on the issuing of Licence/s • on the percentages allocated to good causes • on the efficacy of Legislation related to Lotteries • Protection of Players • Maximize proceeds to good causes • Administer NLDTF • Monitor & Regulate Other Lotteries • Manage the Central Applications Office

  5. Structure NGOs CBOs Applications REGULATOR Monitors activities through Licence NLB Central Applications Office Payments GIDANI NLDTF Weekly transfer Operates the National Lottery 5% 28% 0% 45% 22% DA Art & Culture DA Charities DA Sport DA RDP DA Misc

  6. The Current Funding Model

  7. Application Process Applications Advertised Call for Applications Central Applications Office NGOs CBOs Forms Grant Agreement Payment NLDTF NLB DA Art & Culture DA Charities DA Sport

  8. Internal Process

  9. The Current Funding Criteria

  10. Who is eligible for funding? • Non-Profit Organisations (NPOs) • Non-Governmental Organisations (NGOs) • Public Benefit Trusts • Section-21 Companies • Municipalities and Parastatal Bodies • Institutions of Higher Learning • Public Schools • Museums, Libraries, National Parks and Institutions (Est. through an Act of Parliament) • Provincial Academies of Sport • National Sports Federations • Affiliates to National Sports Federations • Sports Bodies • Recreational Clubs

  11. What are the application requirements? • Prescribed Application Form (2010/1) • Registration Certificate / Proof of Affiliation • Signed & dated Constitution / Founding Documents • New applicants: Two most recent and consecutive sets of Annual Financial Statements - signed & dated by a registered accounting officer • Previously funded applicants: The most recent years’ Audited Financial Statements - signed & dated by an auditor • Signed & dated Auditor’s or Accounting Officer’s Report • Detailed project Business/Implementation Plan • Detailed Project Budget • Project Motivation

  12. Funding Criteria FUNDING DECISION NEED SPREAD IMPACT GOVERNANCE FINANCE HISTORY FEASIBILITY & SUSTAINABILITY PARTNERSHIP BUDGET INNOVATION

  13. Current Funding Focus

  14. Charities Focus • Capacity Building • Poverty Alleviation • Community and Residential Programmes for • children • youth • women • the aged • persons with disabilities • people affected by /infected with HIV/AIDS • the terminally ill • drug abuse

  15. Charities Focus (new)at least 50% to be spent on • Expansion of home based care services through training and • Infrastructure development for the aged, the sick, vulnerable as well as the orphaned children, disabled and rehabilitation homes • Provision of educational facilities designed to enhance literacy through early childhood education, adult literacy, vocational training and mentoring for skills development that include the disabled people

  16. Arts, Culture & Heritage Focus • Major Projects of National Significance • Rural Grants for projects designed to serve the community • Creative Development Grants • Festivals • Film Production and Distribution • Public Art • Heritage: Architectural, Archaeological, Historical and Indigenous Knowledge Systems. • Environment

  17. Arts, Culture & Heritage Focus (new) at least 50% to be spent on • Support for causes designed to protect and promote traditional knowledge and cultural expressions • Promotional work of arts and craft produced by groups of disabled people and women • Development and preservation of cultural heritage sites for revenue generation including tourism attraction, and economic viability for the community

  18. Sports Focus • Capacity building for sports people, managers, administrators and coaches. • Equipment and kit for teams and clubs. • Upgrading of existing sporting facilities(incl. schools) • Funding of preparation for and attendance at Major events

  19. Sports Focus at least 50% to be spent on • Development of sport and recreational facilities in the rural areas for talent development and increase accessibility to such facilities for all including disabled persons.

  20. Achievements

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

  22. NLDTF Allocations1st April 2000 to 31st March 2011(R million)

  23. NLDTF AllocationsProvincial Spread %

  24. NLDTF budget 2011/2012 (Rm)

  25. Challenges

  26. Challenges with current funding Model • Low Impact • Inflexible • Absence of Targeted approach • High Risk • Reactive • Unresponsive to National Priorities • Inequitable

  27. Application Challenges High Rate of Declines • Incomplete documentation • Unaudited financial statements • Unregistered auditors • Documents not in the names of applicant… • Applications outside the mandate of DA (wrong sector or non fundable items)

  28. Project Management Challenges • Lack of good cooperate governance • Grant Agreements not properly signed • Grant Agreements not being read • Unauthorized deviations. • Incorrect, incomplete or unsatisfactory Progress Reports • Improper record keeping • Delays in submitting requested additional information • NLDTF recognition

  29. Other Challenges • Fraud • Misrepresentation • Little or No Impact • Dependency • Conflict of Interests

  30. Other Challenges • Fraud • Misrepresentation • Little or No Impact • Dependency • Conflict of Interests

  31. Interventions • Medium Term • Amendments to the Act including Funding Model • Decentralized operation • Short term • Board’s Consultative Process • Operational fixes • Formalized relationship with Distributing Agencies • Systematic Adjudication • Conflict of interest & code of conduct management • Focused calls for applications

  32. Consultative Process In order to arrive at the most appropriate model for the South African Context, the Board held consultative workshops in all provinces as well as a National Indaba • Attended by 18000 beneficiary organizations in provinces • Attended by 1500 beneficiary organizations at National Indaba • Robust Discussion on Current Model • Consensus on proposed flexible model • Consensus on funding Policy • Consensus on simplification of process and requirements • Consensus on elimination of dependency • Consensus on elimination of Fraud and Misrepresentation

  33. Questions…?

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