1. Independent Development Trust (idt) Presentation to Portfolio Committee for Public Works 19 October 2005

2. Introductory remarks

3. Purpose of the Presentation To present the IDT’s 2004/5 Annual Report to the Portfolio Committee in terms of the Committee’s oversight function and to enable the Committee to prepare and table its Oversight Report on the performance of the IDT

4. Legislative Context Constitution, – Section 55(2): Outlines the oversight powers of the National Assembly i.r.o the performance of departments and public entities – Section 92(3) (b): “Members of Cabinet must provide Parliament with full and regular reports concerning matters under their control.” Annual Reports = regular reports & allow Parliament to evaluate the performance of departments & entities at the end of the financial year Constitution, – Section 55(2): Outlines the oversight powers of the National Assembly i.r.o the performance of departments and public entities – Section 92(3) (b): “Members of Cabinet must provide Parliament with full and regular reports concerning matters under their control.” Annual Reports = regular reports & allow Parliament to evaluate the performance of departments & entities at the end of the financial year

5. IDT’s approach Welcome opportunity to account to Portfolio Committee as the elected public representatives Honourable Members “Eyes and ears” of constituencies = all communities in the country & in terms of monitoring impact and new identifying areas of need 2004/5: Strategic shift- from development output to development outcomes/ impact We cannot be the advocates of impact: 3 rd party/ beneficiary verification. Honourable members: key of 3 rd party voice- advice & guidance Welcome opportunity to account to Portfolio Committee as the elected public representatives Honourable Members “Eyes and ears” of constituencies = all communities in the country & in terms of monitoring impact and new identifying areas of need 2004/5: Strategic shift- from development output to development outcomes/ impact We cannot be the advocates of impact: 3 rd party/ beneficiary verification. Honourable members: key of 3 rd party voice- advice & guidance

6. Compliance Report

7. PFMA requirements 1-month before start of 2004/5 financial year: 2005/o7 Corporate Plan lodged with Executive Authority 21 days after the end of each quarter: Quarterly Performance Reports 31-May-05: Trustee report and financial Statements presented to Auditor General (AG) 31-Jul-05: Received AG’s Audit report 30-Aug-05: Lodge Annual Report with Executive Authority 30-Sep-05: Annual Report tabled in Parliament 1-month before start of 2004/5 financial year: 2005/o7 Corporate Plan lodged with Executive Authority 21 days after the end of each quarter: Quarterly Performance Reports 31-May-05: Trustee report and financial Statements presented to Auditor General (AG) 31-Jul-05: Received AG’s Audit report 30-Aug-05: Lodge Annual Report with Executive Authority 30-Sep-05: Annual Report tabled in Parliament

8. Board Committees Audit, Risk and Compliance Committee: – duly constituted and functioning – Membership: Trustees, 2 External experts and the Office of the Auditor-General – Meets at least 4 times per year Finance Committee Strategic Planning and Programmes Committee: Service delivery and other non- financial performance monitoring Human Resources Committee Remuneration Committee Audit, Risk and Compliance Committee: – duly constituted and functioning – Membership: Trustees, 2 External experts and the Office of the Auditor-General – Meets at least 4 times per year Finance Committee Strategic Planning and Programmes Committee: Service delivery and other non- financial performance monitoring Human Resources Committee Remuneration Committee

9. Internal reporting and monitoring System Institutionalized – Quarterly Unit Reports: Exco, Board Committees – Quarterly Corporate Performance reports: Board of Trustees – Mid-Year Review: End of September each year – Year End Review: April each year – Performance Management System: 3-tier and 360 degrees Institutionalized – Quarterly Unit Reports: Exco, Board Committees – Quarterly Corporate Performance reports: Board of Trustees – Mid-Year Review: End of September each year – Year End Review: April each year – Performance Management System: 3-tier and 360 degrees

10. What is the IDT? What does the IDT do?

11. Governance The IDT is – Trust – Development management agency – established in 1990. Public Finance Management Act: Schedule 2 Public Entity Accounting Authority: Board of Trustees Executive Authority: Minister of Public Works The IDT is – Trust – Development management agency – established in 1990. Public Finance Management Act: Schedule 2 Public Entity Accounting Authority: Board of Trustees Executive Authority: Minister of Public Works

12. Overview Over the 15 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 15 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

13. IDT’s interpretation of the mandate: In response to the challenge of delivering against its mandate, the IDT has:  adopted a set of strategic objectives IDT’s response to the mandate:  Directed its resources to impact on poverty reduction, job creation and local economic development  strive to apply its resources in an effective, efficient, equitable and ethical manner To support all spheres of Government in managing the implementation of its development programme 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. Mandate :

14. Mission Statement 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

15. Vision To be the leading agency in South Africa and the Region

16. DEVELOPMENT GAP DEVELOPMENT GAP DEVELOPMENT GAP Business Model SERVICE AGENCIES Donors, Government, Private Sector: Support institutions with resources to reach their target groups TARGET POPULATION Improve capacity of people and their institutions to reach services

17. Core Business Areas  Development Programme Management  Harnessing Resources  Delivery Capacity Building  Development Programme Management  Harnessing Resources  Delivery Capacity Building

18. 2004/5 Annual Report

19. Opening Statements: (pg 3-5) Executive Authority: – Support Government’s National Development agenda – Mandate: manage implementation of government development programme – Restructuring to enhance service delivery – Unqualified performance report: 3 rd year Accounting Authority: – Set and exceeded performance targets – Committed to mandate – Active in key government programmes: ISRDP. EPWP, Project Consolidate – Growth in business portfolio: vote of confidence – Opportunities & Challenges: shift in strategy; performance monitoring; financial systems; new structure; communications strategy; HR strategy Executive Authority: – Support Government’s National Development agenda – Mandate: manage implementation of government development programme – Restructuring to enhance service delivery – Unqualified performance report: 3 rd year Accounting Authority: – Set and exceeded performance targets – Committed to mandate – Active in key government programmes: ISRDP. EPWP, Project Consolidate – Growth in business portfolio: vote of confidence – Opportunities & Challenges: shift in strategy; performance monitoring; financial systems; new structure; communications strategy; HR strategy

20. Trustees Report (pg 6-19) Compliance Corporate Governance Trustees (new trustee) Functioning of Board Committees Financial Management Risk Management Trustees attendance Trustees and Executive remuneration Compliance Corporate Governance Trustees (new trustee) Functioning of Board Committees Financial Management Risk Management Trustees attendance Trustees and Executive remuneration

21. Chief Executive Officer’s Report (pg 20-23) 15 years of IDT’s existence Point of reference: – National aspirations for just society and commitment to a better life for all – Programme of Action – President’s challenge to public entities Approach: impact on people’s live + most effective use of our resources Shift in corporate strategy: change management challenges 15 years of IDT’s existence Point of reference: – National aspirations for just society and commitment to a better life for all – Programme of Action – President’s challenge to public entities Approach: impact on people’s live + most effective use of our resources Shift in corporate strategy: change management challenges

22. Performance Report: Pages 24-41

23. General Growth in turnover portfolio: – R269m to R1,078 bn – + 30 programmes – + 80% provincial programmes Significant development programmes (Strategic Initiatives) – ISRDP – EPWP – Project Consolidate – Mpumalanga Poverty Strategy – Kaelo Miracle Stories Growth in turnover portfolio: – R269m to R1,078 bn – + 30 programmes – + 80% provincial programmes Significant development programmes (Strategic Initiatives) – ISRDP – EPWP – Project Consolidate – Mpumalanga Poverty Strategy – Kaelo Miracle Stories

24. Impact Poverty Reduction: – Beneficiary testimonies – % programme funds directed at beneficiaries – % of emerging contractors – Number of short term employment opportunities Challenge: Collection and reporting relevant development data vs.% spend – Corrective action: Qualitative profiling Poverty Reduction: – Beneficiary testimonies – % programme funds directed at beneficiaries – % of emerging contractors – Number of short term employment opportunities Challenge: Collection and reporting relevant development data vs.% spend – Corrective action: Qualitative profiling

25. Impact Capacity Building: – Local Area Planning – Training local labour resources – Strengthen project steering committees – Dept. of Labour Reduce infrastructure backlogs: – Pg 27 Sustainability of natural environment: – Working for Water Capacity Building: – Local Area Planning – Training local labour resources – Strengthen project steering committees – Dept. of Labour Reduce infrastructure backlogs: – Pg 27 Sustainability of natural environment: – Working for Water

26. Strategic Objective 1 To add value to the national development agenda through comprehensive programme management services Strategic intentTo effectively deliver a broad portfolio of development programmes in such a manner that it has a measurable impact on the poverty profile and positions the IDT as a leading development agency Key result areaRelevance to the National, provincial and local government development agenda

27. Corporate target 1Performance indicatorMeans of verification Good practice Benchmark 60% of IDT business is derived from Social Cluster poverty eradication programmes % turnover derived from Social Cluster poverty eradication programmes Performance reports 100% of turnover derived from Social Cluster poverty eradication programmes Performance progress: 100% of programmes managed were derived from the Social Cluster poverty eradication programmes

28. Corporate target 2Performance indicator Means of verification Good practice Benchmark 100% of programmes include development outcome indicators % of programmes including development outcome indicators Programm e reports, PIA’s 100% programmes with D.O. indicators Performance progress 75% of programmes include development outcome indicators 13 Development Dialogues conducted to broaden debate and understanding of outcome based sustainable development Established Learning and Innovation Unit Concluded national and provincial environmental scan Concluded qualitative profiling of four programmes to support the shift from outputs to outcomes

29. Corporate target 3 Performance indicator Means of verificati on Good practice Benchmark 100% fulfilment of contractual obligations % number of contractual obligations fulfilled Program me reports, 100% contractual conformance Performance progress: 75% of programme budget spent

30. Corporate target 4 Performance indicator Means of verification Good practice Benchmark CT 4: 100% response rate to critical issues raised by stakeholders % response rate to critical issues raised by stakeholders Performan ce reports, 100% response rate Performance progress Retained 100% (or 15) of the 2003/4 clients Effectively responded to all requests/invitations for engagement with political principals at national, provincial and local government level

31. Strategic Objective 2 To establish and maintain strategic partnerships to enhance development outcomes Strategic intent The IDT will demonstrate leadership in mobilising resources (technical, people, financial, information) from a range of strategic partnerships to achieve enhanced development outcomes in at least half of the number of programmes it manages. Key Result Area Integrated service delivery

32. CORPORATE TARGETS : 5 PERFORMANCE INDICATOR MEANS OF VERIFICATI ON GOOD PRACTICE BENCHMARK 50% of IDT programmes include resources from strategic partners % of IDT programmes including resources from strategic partners Quarterly Performan ce reports % of programmes including resources from strategic partners Performance progress: 70% programmes have resources from strategic partners

33. Strategic Objective 2 To enhance the delivery and absorptive capacity of development institutions Strategic intent To create viable institutions Key Result Area Sustainable Development outcomes

34. CORPORATE TARGET: 6 PERFORMANCE INDICATOR MEANS OF VERIFICA TION GOOD PRACTICE / BENCHMARK 50% of IDT programmes include resources from strategic partners % of IDT programmes including resources from strategic partners Quarterly Performa nce reports % of programmes including resources from strategic partners Performance progress: 70% programmes have resources from strategic partners

35. Strategic Objective To enhance the delivery and absorptive capacity of development institutions Strategic intent To create viable institutions Key Result Area Sustainable Development outcomes

36. CORPORATE TARGET: 7 PERFORMANCE INDICATOR MEANS OF VERIFICATION GOOD PRACTICE BENCHMARK CT 7: 100% compliance with corporate budget guidelines and relevant legislation % compliancePerformance reports 100% compliance Performance progress Provisional expenditure R118 million; within budget Track irregular, wasteful and fruitless expenditure

37. CORPORATE TARGET: 8 PERFORMANCE INDICATOR MEANS OF VERIFICATION GOOD PRACTICE BENCHMARK CT 8: 100% alignment of corporate policies, organisational structure, business systems and practices with corporate strategy % alignment on a pre- defined scale Performance reports 100% alignment Performance progress Business Plans aligned to corporate strategy Performance agreements aligned to business plan Policy Management Unit established Implemented plan of corrective actions in response to the Emphasis of Matter items included in the Report of the Auditor General for the year ended 31 st March 2004 Developed a new HR strategy Develop and implement a migration plan

38. Organisational Highlights Pages 42-55

39. Organisational Highlights Development Programme Services (pg.45) – Core business – Provincial office Shared Services (pg 47) – Capital fund & budgets – Internal support services: IT, HR, Legal and admin Business Development (pg 49-51 – research. strategy development & strategic planning – stakeholder management, new business generation and IGR Development Programme Services (pg.45) – Core business – Provincial office Shared Services (pg 47) – Capital fund & budgets – Internal support services: IT, HR, Legal and admin Business Development (pg 49-51 – research. strategy development & strategic planning – stakeholder management, new business generation and IGR

40. Annual Financial Statements Pages 56-71

41. Report of the Auditor General (Pages 44-45) Audit of Financial Information: “in my opinion the financial statement fairly represent in all material aspects the financial position of the IDT as at 31 May 2005... Audit of Performance Information: none measures this year Audit of Programme: 1 st year Audit of Financial Information: “in my opinion the financial statement fairly represent in all material aspects the financial position of the IDT as at 31 May 2005... Audit of Performance Information: none measures this year Audit of Programme: 1 st year

42. Report of the Auditor General (Pages 44-45) Without qualifying the audit opinion expressed above, attention is drawn to the following matters: – Differences identified in reconciling programme accounts at year end – Weaknesses in controls over accounts payable – Submission of annual financial statements Attending to these Without qualifying the audit opinion expressed above, attention is drawn to the following matters: – Differences identified in reconciling programme accounts at year end – Weaknesses in controls over accounts payable – Submission of annual financial statements Attending to these

43. Fruitless, wasteful & irregular expenditure Payroll Fraud: – Reported to Committee in March – + R526 000 Two employees suspended on 3 June 2004 – 25 June: disciplinary hearing & dismissal Fictitious bank details: service provider – North West – Internal Audit: source of fraud

44. Concluding Comments

45. Strategic Challenges Redefine IDT role/ value add as development agency – Environmental scan and analysis: 2007/09 Corporate plan Cabinet Lekgotla – Explicitly state our understanding of poverty and indicators (including MDGs) by which to measure IDT's performance – Development hub – Models of people centred development – Reference Group: External development experts EPWP accelerate our delivery/value critical national development programme Vibrant learning organisation: learning all the time; seeking improving our development practice; innovative development solution Redefine IDT role/ value add as development agency – Environmental scan and analysis: 2007/09 Corporate plan Cabinet Lekgotla – Explicitly state our understanding of poverty and indicators (including MDGs) by which to measure IDT's performance – Development hub – Models of people centred development – Reference Group: External development experts EPWP accelerate our delivery/value critical national development programme Vibrant learning organisation: learning all the time; seeking improving our development practice; innovative development solution

46. Proposals Committee indicate what other information is required to be comfortable with presenting Report to Parliament. Relationship between Committee and IDT Invitation: – Participate in our Development Reference Group – IDT work wider = than Public Works programmes: visit, engage with beneficiaries Request opportunity to present: – 2006/8 Corporate Plan – 2007/09: 1 st quarter 2006 Committee indicate what other information is required to be comfortable with presenting Report to Parliament. Relationship between Committee and IDT Invitation: – Participate in our Development Reference Group – IDT work wider = than Public Works programmes: visit, engage with beneficiaries Request opportunity to present: – 2006/8 Corporate Plan – 2007/09: 1 st quarter 2006

47. Thank you Thembi Nwedamutswu Chief Executive Officer thembin@idt.org.za Edith V. Vries Group Executive: Business Development edithv@idt.org.za thembin@idt.org.za edithv@idt.org.za Thank you Thembi Nwedamutswu Chief Executive Officer thembin@idt.org.za Edith V. Vries Group Executive: Business Development edithv@idt.org.za thembin@idt.org.za edithv@idt.org.za www.idt.org.za