1. Click to edit Master subtitle style 7/23/10 National Lotteries Board Presentation to Portfolio Committee on Sport & Recreation 20 July 2010

2. 7/23/10 Presentation Outline  Regulatory Framework  NLDTF Allocations - Sector Breakdown - Provincial Spread - Beneficiary categories  Governance - Structures & Functions - Matters of good corporate governance  Discussion 22

3. 7/23/10 Regulatory Framework  The National Lotteries Act establishes the National Lotteries Board  Sets up the process for awarding the licence  Establishes the National Lottery Distribution Trust Fund (NLDTF)  Sets up the process of Distribution  Sets up process for Monitoring & Regulating  Private & Society Lotteries  Promotional Competitions 33

4. 7/23/10 Gidani NLB NLDTF DA Charities DA Art & Culture DA Sport DA RDP DA Misc 28% 45% 22 % 5% 0% Weekly transfer Cent ral App licat ions Offi ce REGULATOR Monitors activities through Licence NGOs CBOs Applications Governance..Structure Operates the National Lottery 44

5. 7/23/10 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 55

6. 7/23/10 Functions of Distributing Agencies  Appointed by the Minister of Trade & Industry for a period of 5 yrs  Develop criteria and guidelines for allocation of funding as directed by the Minister  Adjudicate applications for funding  Review project progress-and site visit reports  Reporting duties to Board 66

7. 7/23/10 Sport Funding Focus  Capacity building (managers, administrators and coaches).  Equipment and kit for teams and clubs.  Building & Upgrading of sporting facilities (incl. schools & clubs)  Development  High Performance  Major events (participation and hosting) 77

8. 7/23/10 Application Statistics ReceivedAdjudicatedApprovedDeclinedOutstanding 2007/8 369111546135412537 2008/9 867594139455273 88

9. 7/23/10 Allocations: 1Apr 09- 31March 10 Province Provincial Spread (%)Provincial Spread (R) Eastern Cape7%R 45, 034,728.51 Free State6%R 34, 268,842.31 Gauteng10%R 64, 791, 966.70 KZN Natal4%R 24, 992, 369.28 Limpopo13%R 77, 379, 364.48 Mpumalanga8%R 49, 836, 347.71 Northern Cape3%R 21, 166, 014.59 North West8%R 50, 462, 954.36 Western Cape7%R 41, 307, 448.07 National34%R 209, 783, 751.00 Total100%R 619, 023, 787.01 99

10. 7/23/10 Allocations: 1 Apr 09- 31March 10 10

11. 7/23/10 Allocations: 1 Apr 09- 31March 10..sector spread MunicipalitiesR 18,724,395.003% SchoolsR 243,768,878.2239% Tertiary InstitutionsR 43,801,931.687% NFs, PF+PSCR 169,673,957.6727% Provincial AcademiesR 18,447,790.003% CLUBS & NGO'SR 35,506,834.446% MACRO BODYR 89,100,000.0014% TOTALR 619,023,787.01 100% 11

12. 7/23/10 Allocations: 1Apr 09- 31March 10..sector spread 12

13. 7/23/10 Accumulated disbursements (actual cash paid as at 30 June 2010) YearAmount (in Rand) 2001-200384,206,003 2004149,483,493 2005226,903,596 2006304,949,519 2007291,831,712 2008211,207,395 2009298,268,994 2010371,547,062 2011190,335,304 Total (Sports)2,128,733,079 (25.4%) Total (NLDTF) 8,387,089,977 13

14. 7/23/10 Governance…Structure 14

15. 7/23/10 Composition of SRDA  Mr. Gideon Sam (Chairperson)  Ms. Hajeera Kajee (Deputy Chairperson)  Mr. Thulani Tshabalala  Mrs. Keikabile Motlatsi  Mr. Vinesh Maharaj  Mrs. Celeste van Niekerk  Mr. Raymond Mali  Dr. Harold Adams  Mr. Vernie Petersen  Prof. Andre Travill  Mr. Edwin Ncula 15

16. 7/23/10 Challenges..distribution of funds  Lack of strategic focus  High decline rate  Lack of/Inadequate impact measurement  Alignment of criteria/guidelines with funding objectives (e.g. development, transformation)  Operational model  Turnaround times 16

17. 7/23/10 Challenges..corporate governance  Disjunction between responsibilities of the Board as accounting authority and trustee of the NLDTF and the authority vested in the Distributing Agencies to adjudicate and decide on allocations of funds from the NLDTF  DA Membership: The benefit of the expertise of people involved in the sport sector vs. the potential/perceived conflict of interest in allocation of funds 17

18. 7/23/10 Interventions/Proposed solutions  Ministry of Sport to produce blue print for sport development  Road shows to be implemented before end of 2010  Establishment of provincial offices  Review of NLB organizational structure  Review of operational model (incl. possible decentralization of adjudication of applications)  Revised Funding Regulations to be published by the Minister of Trade & Industry  Amendment of the Lotteries Act 18

19. 7/23/10 DISCUSSION 19