Presentation to the Portfolio Committee for Public Works 14 August 2002

Purpose of the Presentation To inform the Portfolio Committee of the IDT’s Corporate Plan

1.Overview The IDT is development management agency established in PMFA: Schedule 2 Public Entity Deed of Trust- Board of Trustees - Accounting Authority Accounts to Parliament through the Minister for Public Works Mandate: “…to use its resources, without regard to race, sex, creed, or ethnic origin, in ways which in the opinion of the Trustees, will best serve to promote the development of disadvantaged people in the Republic of South Africa…” The IDT is development management agency established in PMFA: Schedule 2 Public Entity Deed of Trust- Board of Trustees - Accounting Authority Accounts to Parliament through the Minister for Public Works Mandate: “…to use its resources, without regard to race, sex, creed, or ethnic origin, in ways which in the opinion of the Trustees, will best serve to promote the development of disadvantaged people in the Republic of South Africa…”

Overview cont. Over the eleven years of its existence, the IDT’s role in the development sector has shifted from that of a – grant making agency – programme implementation agency – development planning & implementation – development integration and coordination Over the eleven years of its existence, the IDT’s role in the development sector has shifted from that of a – grant making agency – programme implementation agency – development planning & implementation – development integration and coordination

Core Business – Development programme management – Leveraging resources – Institutional capacity building – Development programme management – Leveraging resources – Institutional capacity building

2.Purpose The principal purpose of the IDT is to influence, support and add value to the national, provincial and local government development agenda It will do so by deploying its resources in the initiation and delivery of innovative and sustainable development programmes, which make a measurable difference in the levels of poverty and underdevelopment The principal purpose of the IDT is to influence, support and add value to the national, provincial and local government development agenda It will do so by deploying its resources in the initiation and delivery of innovative and sustainable development programmes, which make a measurable difference in the levels of poverty and underdevelopment

3.Vision The IDT as the leading development agency in South Africa and the Region.

4.Mission “ The IDT with strategic partners, will enable poor communities to access resources, and to recognise and unlock their own potential to continuously improve the quality of their lives.” We shall achieve this through  The quality of our human capital  Delivering a distinctive development product and service  An organisational culture which is geared to learning and growth  The quality of our leadership “ The IDT with strategic partners, will enable poor communities to access resources, and to recognise and unlock their own potential to continuously improve the quality of their lives.” We shall achieve this through  The quality of our human capital  Delivering a distinctive development product and service  An organisational culture which is geared to learning and growth  The quality of our leadership

6. Strategic Goal:long-term The IDT, with government, and together with partners will facilitate the implementation of innovative and sustainable development programmes in the poorest and most marginalised communities

7. Strategic Objectives To enhance community participation in local development processes Enhance the IDT’s capacity to influence client development planning processes Establish and maintain strategic partnerships to enhance development outcomes To position the IDT to become a vibrant learning organisation Deliver services to client satisfaction To gear all resources within the organisation towards excellence in delivery To enhance community participation in local development processes Enhance the IDT’s capacity to influence client development planning processes Establish and maintain strategic partnerships to enhance development outcomes To position the IDT to become a vibrant learning organisation Deliver services to client satisfaction To gear all resources within the organisation towards excellence in delivery

8. Human Resource Management and Organisational structure Four business units each with a distinct responsibility i.r.o. corporate targets Head Office, Regional & Satellite offices Staff establishment: 228 with 158 filled Employment Equity Plan Accelerated Development Programme Performance Management System Four business units each with a distinct responsibility i.r.o. corporate targets Head Office, Regional & Satellite offices Staff establishment: 228 with 158 filled Employment Equity Plan Accelerated Development Programme Performance Management System

9. Financial resources and Budget Source of revenue: interest earned from investment of main fund IDT’s contribution to the development of communities in which it works: Approx. R90 million per annum Financial management in line with international best practices – generally accepted accounting practice – integrated accounting system – activity-based costing Budget attached as Appendix 2 in Corporate Plan Source of revenue: interest earned from investment of main fund IDT’s contribution to the development of communities in which it works: Approx. R90 million per annum Financial management in line with international best practices – generally accepted accounting practice – integrated accounting system – activity-based costing Budget attached as Appendix 2 in Corporate Plan

10. Governance and implementation Planning, implementation & reporting process influenced by: – Planning Cycle of Government: 95% of contractual commitments – Executive Authority: Shareholders Compact Agreement determines reporting obligations and roles – Intergovernmental structures: Portfolio Committees, Cabinet Committees Governance structures: – Board of Trustees – Executive Committee – Management Committee Planning, implementation & reporting process influenced by: – Planning Cycle of Government: 95% of contractual commitments – Executive Authority: Shareholders Compact Agreement determines reporting obligations and roles – Intergovernmental structures: Portfolio Committees, Cabinet Committees Governance structures: – Board of Trustees – Executive Committee – Management Committee

11. Risk Management Plan PFMA requires that an organisation takes adequate steps to identify and mitigate risks Internal Risk Assessment concluded and reported to Audit Committee Process to institutionalise the awareness and management of risks Risk Management plans will be managed at the level of business units In addition, a Risk Management Committees will monitor and manage risks associated with major programmes “Proposed Process for Developing the Risk Management Plan” is attached as Appendix 3 PFMA requires that an organisation takes adequate steps to identify and mitigate risks Internal Risk Assessment concluded and reported to Audit Committee Process to institutionalise the awareness and management of risks Risk Management plans will be managed at the level of business units In addition, a Risk Management Committees will monitor and manage risks associated with major programmes “Proposed Process for Developing the Risk Management Plan” is attached as Appendix 3

12. Fraud Prevention Policy & Plan Objective of Policy: to develop and foster a climate where all employees strive for the ultimate eradication of fraud, corruption, theft and maladministration by means of the application of the full spectrum of both pro- active and re-active measures Implementation Matrix: Roles, responsibilities, targets Red Flags: indicators for individuals more susceptible Code of Ethics Appendix 4 Objective of Policy: to develop and foster a climate where all employees strive for the ultimate eradication of fraud, corruption, theft and maladministration by means of the application of the full spectrum of both pro- active and re-active measures Implementation Matrix: Roles, responsibilities, targets Red Flags: indicators for individuals more susceptible Code of Ethics Appendix 4

13. Shareholders Compact Agreement Requirement in terms of the PFMA Represents the “performance agreement” on good governance between government, as the shareholder & the IDT. Objective: To improve transparency, accountability and sound management Determines the parameters of the relationship between the shareholder and the IDT, as well as reporting requirements To confirm the performance targets as indicated in the corporate goals and objectives Agreement developed jointly by IDT and DPW teams (Appendix 5) Requirement in terms of the PFMA Represents the “performance agreement” on good governance between government, as the shareholder & the IDT. Objective: To improve transparency, accountability and sound management Determines the parameters of the relationship between the shareholder and the IDT, as well as reporting requirements To confirm the performance targets as indicated in the corporate goals and objectives Agreement developed jointly by IDT and DPW teams (Appendix 5)

Management of Corporate Plan Corporate Targets: – CA supports, monitors and reports on the overall performance – Cross-unit Project Teams responsible for each strategic objective Key Performance areas (focus areas): – reflected in Strategic Management Plans of each unit & region Above two components reflected in the Business Plans of each Unit & Region Performance Agreements of Directors reflect corporate targets Corporate Targets: – CA supports, monitors and reports on the overall performance – Cross-unit Project Teams responsible for each strategic objective Key Performance areas (focus areas): – reflected in Strategic Management Plans of each unit & region Above two components reflected in the Business Plans of each Unit & Region Performance Agreements of Directors reflect corporate targets