4/19/2018 BUSINESS CASE, STRATEGY & THE APP PRESENTATION TO THE PORTFOLIO COMMITTEE OF SOCIAL DEVELOPMENT 13 MARCH 2016 Ms Nelisiwe Vilakazi Acting CEO

CONTENT Purpose Mandate Background Problem Statement NDA Business Case Current NDA Business Model Limitations & Inefficiencies of Current Model Proposed NDA Repositioning Model Priority Districts and District Model Transitional Implementation Plan Proposed Business Case Budget NDA Strategy NDA APP (2016/2017) MTEF Budget (2016/17 – 2018/19)

PURPOSE To present the Business Case, Strategic Plan (2016/2021) and the Annual Performance Plan (2016/2017) of the NDA to the Portfolio Committee on Social Development

An active civil society for sustainable poverty eradication NDA MANDATE Vision An active civil society for sustainable poverty eradication NDA ACT Mission To contribute to poverty eradication and the elimination of its causes. Primary Mandate Values Integrity with Dignity, Empowerment for Accountability, Responsibility with Transparency, Excellence and Partnering Strengthening the institutional capacity of other civil society organisations involved in direct service provision to the poor communities Carrying out programmes and projects aimed at meeting development needs of the poor To contribute towards the eradication of poverty and its causes by granting funds to civil society organisations for the purpose of:-

Debating development policy NDA MANDATE NDA ACT Secondary Mandate Undertaking research and publication aimed at proving basis for development policy Acting as conduit for funding from Government, foreign government and other national and international donors for development work carried-out by CSOs ” Debating development policy Promote consultation, dialogue and sharing of development experience between the CSOs and relevance organs of state through

BACKGROUND DSD conducted a review of NDA given the view of the National Treasury that the mandate was not clear. The outcome of the review pointed to the need for the NDA to reposition itself and to establish its own niche to remain relevant to the government and to the stakeholders. Consultations between NDA and DSD followed to establish how to respond to the findings and recommendations of the review. An environmental scan was conducted to inform the process and content of the repositioning and strategy formulation. Based on the review processes, NDA analysed the outcomes to establish a problem statement and then developed a Business Case and Strategy. The Business Case, Strategy and the APP were shared with different stakeholders, approved and tabled in Parliament.

PROBLEM STATEMENT Positioning of the NDA - the NDA has been perceived by social partners and some government departments, as not well positioned to deliver on its mandate. Focusing and establishing a niche – The key stakeholders interviewed in both government and the CSO sector expressed a view that the NDA is duplicating activities done by other government departments, and performing functions that should be performed by CSOs. Institutional support structure – one of the felt pressures by the NDA is its institutional structure and ability to efficiently and effectively contribute to its legislated mandate. Visibility and Access – The NDA review, Mikondzo and the NDA environmental scan have all pointed to lack of NDA visibility and access to NDA services by CSOs and communities. The NDA is not known and this is a major concern for the Agency.

NDA BUSINESS CASE The NDA business case aim at achieving the following in response to the problem statement: Positioning of NDA - The Agency will focus on supporting CSOs, including cooperatives delivering services in most deprived districts in South Africa – Mikondzo Districts – working with DSD & SASSA Establishing a niche – the NDA will focus on CSOs capacity building, CSOs social mobilisation and linkages of CSOs to developmental resources. Service delivery model - decentralised and provided at district level as opposed to provincial level. Up-skilling and preparation of staff - Re-skilling and re-orienting all NDA staff on the new business model and its processes and systems. Upgrading and re-alignment of systems and processes - upgrade and integrate the current information technology infrastructure and systems to meet business model needs. Re-adjustment of resource allocation to the Agency - the state to increase the funding levels of the NDA to meet the business model demands.

CURRENT NDA BUSINESS MODEL

LIMITATIONS & INEFFICIENCIES OF CURRENT MODEL The NDA programmes are currently located at provincial offices making it very difficult for the poor communities to access NDA services, thus contributing to poor visibility and presence of the Agency services. The structure has a number of limitations and inefficiencies as the human resources skills required to implement programmes and projects is located at provincial and national levels. This results in high cost of running business as staff have to travel long distances to implement and monitor programmes and projects. The Advisory centres are currently providing very limited function, namely, provision of information and referrals, this make this business to be ineffective and inefficient as resources are spent on human resources and infrastructure with minimal return on investment.

PROPOSED NDA REPOSITIONING MODEL

PRIORITY DISTRICTS IN PROVINCES

DISTRICT OFFICE STRUCTURE & LINKS WITH SECTOR OFFICES

DISTRICT OFFICE STRUCTURE & LINKS WITH SECTOR OFFICES 1

TRANSITIONAL IMPLEMENTATION PLAN The NDA has adopted a project management approach to facilitate the transitional planning and its implementation. A transitional implementation plan was developed comprising of the following 5 strategic drivers: Organisational Restructuring & Alignment IT Enhancement & Optimisation Physical Infrastructure Service Re-engineering Financial Sustainability The transitional plan has timeframes, budgets, key risks & responsibilities, and the implementation is therefore monitored weekly.

FUNDING PROPOSAL FOR THE NDA BUSINESS CASE AND STRATEGY 2017/2018 2018/2019 2019/2020 NEW BASELINE ALLOCATION 487 153 000 511 510 650 537 086 183 Current Baseline Allocation 195 153 000 Current Funding Requirements for New Baseline 292 000 000 - TOTAL EXPENDITURE PROGRAMMES 447 198 819 493 115 370 524 058 233 Programme 1: Administration 185 556 464 190 954 378 209 483 372 Programme 2: CSOs Mobilisation 92 895 225 109 336 691 113 427 622 Programme 3: CSOs Capacity Building 149 761 975 172 614 738 179 578 418 Programme 4: Research and Knowledge Management 18 985 154 20 209 563 21 568 820 CAPITAL EXPENDITURE 29 235 181 18 395 280 13 027 950 Office Furniture 15 065 181 1 500 000 Computer Equipment 5 331 000 1 100 280 1 177 300 IT infrastructure & Systems (Software and Intangibles) 8 839 000 15 795 000 11 850 650 ONCE OFF OFFICE SETUP COSTS 10 719 000 SHOTFALL (292 000 000)

NDA REVISED 5 YEAR STRATEGIC PLAN The NDA strategy has identified 4 strategic objectives to guide the operations in the MTSF, which are: To develop and strengthen internal systems, processes and human capability to deliver efficiently and effectively on the NDA mandate. To conduct CSOs engagements, assessments, and needs analysis in the identified prioritized wards. To increase accessibility to capacity strengthening interventions to CSOs with the aim of improving the quality of services. To conduct, collate and disseminate research and evaluations that inform the national development agenda.

NDA NEW PROGRAMMES & STRATEGIC OBJECTIVES Programme 1: Governance and Administration The programme will focus on promoting and maintaining organisational excellence and sustainability through effective and efficient administration that includes performance, employee well-being, cost containment and brand recognition. These will be achieved within a sound governance and administration environment. Programme 2: Civil society organisations social mobilisation The programme focuses on CSO organisation engagements, assessments and needs analysis for CSOs, prioritisations of interventions required by CSOs, facilitating community and CSOs networks, resource identification and mobilisation to support NPOs, provision of information and referrals of CSOs to other state and private institutions for additional support.

NDA NEW PROGRAMMES & STRATEGIC OBJECTIVES Programme 3: Civil society institutional capacity building The programme will focus on strengthening institutional capacities of CSOs across Mikondzo districts and other high poverty districts identified by provinces and municipalities across all nine provinces. Programme 4: Research and knowledge management The programme will focus on action research and impact evaluative studies that will be used to inform programme planning, implementation and management of NDA poverty eradication programmes in the Mikondzo districts.

NDA ANNUAL PERFORMANCE PLAN 2016/2017 The APP covers the four programmes. Under each programme the APP has the following information: The strategic objectives The key performance indicators for each strategic objectives The target for each key performance indicator Break down of the targets into the four quarters of the year Definition and description of all key performance indicators, including the description of portfolio of evidence (PoE) to be produced for each and very KPI Budget for the MTEF 1

Administration: Strategic Objectives, indicators & annual targets for 2016/17 4/19/2018 Strategic Objective 1 Audited/Actual Performance Estimate performance 2015/16 Medium-term Targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19 To develop and strengthen internal systems, processes and human capability to deliver efficiently and effectively on the NDA mandate Unqualified audit opinion Clean audit opinion Performance indicators Audited/Actual Performance Estimate performance 2015/16 Medium-term Targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19 1.1 Number of Executive (EXCO) meetings held New 12 1.2 Number of partnership agreements concluded and signed 14 Not in the APP 17 21 25 1.3 Timeous submission of strategic plan & Annual Performance Plan to the Executive Authority Submit within the prescribed timeframes 1.4 Number of hits reached through NDA website and social media platforms 80 000 120 000 200 000 1.5 Percentage of staff audited for skills development 100%

Administration: Strategic Objectives, indicators & annual targets for 2016/17 (cont) Performance indicators Audited/Actual Performance Estimate performance 2015/16 Medium-term Targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19 1.6 Percentage of targeted employees attending identified skills development programmes New 60% 40% 1.7 Percentage reduction in regulatory Audit findings 80% 100% 1.8 Completed and functional Integrated Information System Approved ICT strategy and plan 60% Implementation of IT Plan Fully functional and integrated ICT system 1.9 Number of 27 district offices established and functional. 9 18

Administration: Strategic Objectives, indicators & quarterly targets Quarterly Breakdown for Targets and Performance indicators Reporting period Annual Target 2016/17 Quarterly Targets Q1 Q2 Q3 Q4 1.1 Number of EXCO meetings held Quarterly 12 3 1.2 Number of partnership agreements concluded and signed 17 6 5 1.3 Timeous submission of strategic plan & Annual Performance Plan to Executive Authority Annually Submit within the prescribed timeframes 1st Draft APP& Strategy submitted within prescribed timeframes 2nd Draft APP& Strategy submitted within prescribed timeframes Final approved APP& Strategy submitted within prescribed timeframes 1.4 Number of hits reached through NDA website and social media platforms 80 000 20 000 1.5 Percentage of staff audited for skills development 100% - 1.6 Percentage of targeted employees attending identified skills development programmes 60% 20% 40% 1.7 Percentage reduction in regulatory Audit findings Bi-annually 80% 1.8 Completed and functional Integrated Information System Approved ICT strategy and plan IT Assessment requirement report Draft IT Strategy & Plan 1.9 Number of district offices established and functional 9

CSOs Mobilisation: Strategic Objectives, indicators & annual targets Audited/Actual Performance Estimate performance 2015/16 Medium-term Targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19 To conduct CSOs engagements, assessments and needs analysis in the identified priority wards. New 2 030 3 050 4 200 Performance indicators Audited/Actual Performance Estimate performance 2015/16 Medium-term Targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19 1.1 Number of social engagements with CSOs on community development new 2 030 3 050 4 200 1.2 Number of CSOs structures formalised in priority wards per year 630 720 940 1.3 Number of CSOs assessed in priority wards to determine appropriate capacity building interventions per year 1.4 Number of CSOs assisted to register with appropriate registration authority in priority wards 1.5 Number of CSOs assessed and referred to other Agencies for technical and financial support in priority wards per year 406 762 1 260

CSOs Mobilisation: Strategic Objectives, indicators & quarterly targets Quarterly Breakdown for Targets and Performance indicators Reporting period Annual Target 2016/17 Quarterly Targets Q1 Q2 Q3 Q4 1.1 Number of social engagements with CSOs on community development per year Quarterly 2 030 365 555 1.2 Number of CSOs structures formalised in priority wards per year 630 60 262 201 107 1.3 Number of CSOs assessed in priority wards to determine appropriate capacity building interventions per year. 1.4 Number of CSOs assisted to register with appropriate registration authority in priority wards per year 1.5 Number of CSOs assessed and referred to other Agencies for technical and financial support in priority wards. 406 100 102

CSOs Capacity Building: Strategic Objectives, indicators & annual targets Audited/Actual Performance Estimate performance 2015/16 Medium-term Targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19 To increase accessibility to capacity strengthening interventions to CSOs with the aim of improving the quality of services. New 4950 8250 14000 Performance indicators Audited/Actual Performance Estimate performance 2015/16 Medium-term Targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19 1.1 Number of civil society organisations trained and mentored to comply with the Non Profit Organisations Act, 1997 new 3000 3750 6000 1.2 Number of civil society organisations capacitated in civil society organisational management per year 223 2 059 2 531 2 500 2000 5000 1.3 Number of NPOs trained in community development practice 450 1500 1.4 Number of NDA funded projects exited into sustainable programmes 140

CSOs Capacity Building: Strategic Objectives, indicators & quarterly targets (cont) Quarterly Breakdown for Targets and Performance indicators Reporting period Annual Target 2016/17 Quarterly Targets Q1 Q2 Q3 Q4 1.1 Number of civil society organisations trained and mentored to comply with the Non Profit Organisations Act, 1997 Quarterly 3000 500 1000 1.2 Number of civil society organisations capacitated in civil society organisational management per year 2000 250 750 1.3 Number of NPOs trained in community development practice 450 50 175 1.4 Number of NDA funded projects exited into sustainable programmes 140 20 40

Research & Knowledge Management: Strategic Objectives, indicators & annual targets Audited/Actual Performance Estimate performance 2015/16 Medium-term Targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19 To conduct, collate and disseminate research and evaluations that inform national development agenda. New 16 reports produced & disseminated 18 reports produced & disseminated 20 reports produced & disseminated Performance indicators Audited/Actual Performance Estimate performance 2015/16 Medium-term Targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19 1.1 Number of research reports, evaluation reports and policy briefs produced per year new 14 reports produced 16 reports produced 18 reports produced 20 reports produced 1.2 Number of best practice publication produced per year 6 7 6 publications produced 9 publications produced 12 publications produced 1.3 Number of dissemination sessions for research reports, evaluation reports, policy briefs and best practice publication conducted per year 1.4 Number of people who attended research reports, evaluation reports, policy briefs and best practice dissemination sessions per year New 240 people 260 people 280 people 1.5 Revised NDA monitoring and evaluation framework and tools approved during the year Approved M&E Framework

Research & Knowledge Management: Strategic Objectives, indicators & quarterly targets (cont) Quarterly Breakdown for Targets and Performance indicators Reporting period Annual Target 2016/17 Quarterly Targets Q1 Q2 Q3 Q4 1.1 Number of research reports, evaluation reports and policy briefs produced per year Quarterly 16 reports produced 2 reports produced 6 reports produced 1.2 Number of best practice publication produced per year 6 publications produced 1 publication produced 2 publications produced 1.3 Number of dissemination sessions for research reports, evaluation reports, policy briefs and best practice publication conducted per year 6 sessions 1 session 2 sessions 1.4 Number of people who attended research reports, evaluation reports, policy briefs and best practice dissemination sessions per year 240 40 people 80 people 1.5 Revised NDA monitoring and evaluation framework and tools approved during the year Approved M&E framework & tools Draft M&E framework & tools

MTEF Budget Allocation CURRENT YEAR (2015/16) 2016/17 2017/18 2018/19 REVENUE 188 181 000 197 353 000 206 741 000 216 358 050 Transfer from Department of Social Development 184 381 000 194 153 000 203 861 000 214 054 050 Other Income 3 800 000 3 200 000 2 880 000 2 304 000 TOTAL EXPENDITURE PROGRAMME 1: ADMINISTRATION AND GOVERNANCE 92 365 569 86 462 309 89 224 910 95 264 439 Employment cost (Support and Governance Staff) 49 479 596 47 516 855 49 748 001 53 221 531 Overheads and operating costs 38 306 377 38 945 454 39 476 909 42 042 908 TOTAL MANDATE COST 95 815 431 89 681 619 100 516 090 114 293 611 PROGRAMME 2: CSO MOBILISATION 68 265 726 33 014 876 35 262 807 37 501 865 CSO engagements, needs assessment and support 41 856 672 10 775 742 11 466 934 12 040 281 Compensation of Employees (Development Managers & Information officers) 26 409 054 22 239 134 23 795 873 25 461 584 PROGRAMME 3 : CSO CAPACITY BUILDING 18 000 000 47 373 361 55 263 740 66 144 573 Compensation of Employees (Capacity building officers) 17 001 619 20 338 006 24 370 092 Institutional capacity building 30 371 742 34 925 734 41 774 481 PROGRAMME 4: RESEARCH AND KM 9 549 705 9 293 382 9 989 543 10 647 173 Compensation of Employees (M& E Specialists) 2 632 823 3 891 683 4 156 317 4 434 790 Research studies commissioning & publication of studies 3 323 035 3 216 652 3 506 151 3 734 050 Monitoring and evaluation of programmes 3 593 847 2 185 047 2 327 075 2 478 332 Capital expenditure 4 579 596 21 209 071 17 000 000 6 800 000 Replacement of Laptops per IT Policy 1 416 071 2 000 000 1 800 000 Integrated ICT system - 5 000 000 Set - up costs : District offices 17 793 000 10 000 000 SHORTFALL/ SURPLUS

RECOMMENDATION It is recommended that the Portfolio Committee on Social Development approves both the Strategic Plan (2016/2021)and the Annual Performance Plan (2016/2017) of the NDA.

THANK YOU!!