1. Salim S. Abdool Karim President, Medical Research Council of South Africa Medical Research Council of South Africa: Annual Report Briefing to the Portfolio Committee on Health

3. Outline 1.Vision and mission 2.Revitalising the MRC 3.Performance 4.Governance 5.Finances 6.Conclusion

4. VISION Building a healthy nation through research and innovation MISSION To improve the nation’s health and quality of life by conducting and funding relevant and responsive health research, development, innovation and research translation

5. Revitalising the MRC: Reclaiming leadership of SA’s medical research Almost doubled MRC budget over next 3 years Improved PFMA compliance: 2013 clean Audit – AGSA Created SHIP (R284million) to fund health technologies Revamped extramural unit and grant review process Reduced administrative inefficiencies & bureaucracy  Reduced MRC policies from 93 to 25  KPMG has completed review of administrative structures & efficiency  Commissioned Deloittes to do a space audit Improved communication & research recognition  Weekly ‘Friday Bulletin’ & monthly ‘MRC Celebrates Science…’ Intramural (in-house) research prioritised to maximise impact on health  Focus the intramural research into 12 + 1 MRC intramural units  Prioritise on Top 10 causes of death in Burden of Disease

7. 2013: MRC science impacts global policy on Intimate partner violence

8. 2012/13 MRC Lancet papers: Burden of Disease MRC researcher: R Matzopoulos (Safety and Peace Promotion Research Unit) MRC researcher: D Bradshaw (Burden of disease research unit) MRC researcher: C Parry (Alcohol and Drug Abuse Research Unit) MRC researcher: D Bradshaw and N Nannan (Burden of Disease Research Unit) Progress towards Millennium Development Goal 4

9. 2012/13 MRC Lancet papers: TB & HIV MRC researcher: C Lombard (Biostatistics Unit) MRC researcher: M van der Walt (TB Epidemiology and Intervention Research Unit) MRC researcher: A Venter (Centre for Molecular and Cellular Biology) and P Becker (Biostatistics Unit)

10. The MRC’s strategic goals 1.Administer South African health research effectively and efficiently 2.Lead the generation of new knowledge and facilitate its translation into policies and practices to improve health 3.Support innovation and technology development to improve health 4.Build capacity for long-term sustainability of the country’s health research

11. The MRC’s new indicators 1. Administering SA’s health research effectively and efficiently: 1. MRC’s audit findings 2. % of MRC budget spent on administration 2. Leading the generation of new knowledge for policy / practice: 3. ISI articles with an MRC-affiliated author 4. ISI articles that acknowledge MRC support 5. MRC articles in the top 4 journals: NEJM, Lancet, Science & Nature 6. MRC first-author ISI journal articles 7. Policies and guidelines that reference MRC research 8. Research grants awarded by the MRC 3. Innovation and technology development: 9. MRC projects on new diagnostics, drugs, devices & vaccines 4. Capacity-building: 10. MRC bursaries/ scholarships/ fellowships for post-graduate study

13. MRC Governance MRC Board: 14 Board members: 13 non-executive + 1 executive NDoH has a seat in an observer capacity 1 member resigned & 1 member passed away Risk management: Risk workshops conducted at a strategic and operational level - developed risk mitigation plans Improvement in the MRC’s National Treasury Rating (NTR) for risk management Audit, Risk & IT Committee reviews compliance with laws and regulations bi-annually Clean audit in 2012 – received award

14. Mr Nick Buick and team collect the MRC’s first clean audit award

16. Finances Income statement: Revenue for the year decreased by 6.5% to R504million Operating expenses decreased by 0.73% to R577million Hence an increased operating deficit of R63million Somewhat offset by an increase in investment income of 10% to R17million Final deficit of the year: R45million, exceeding approved budget by R3million (severance packages and consulting fees from revitalisation initiative) Balance Sheet: Reserves at 31 March 2013: R241million Assets increased by 2.4% to R535million Cash and cash equivalents increased by 17.1% to R368million Increase in deferred income by 25.4% to R209million Approved increase of 47% in baseline allocations to R416million for 2013/14

17. MRC Revenue Collection 2012/132011/12 Source of revenueApproved Budget R’000s Actual R’000sOver/(under) collection R’000s Actual R’000sIncrease/ (decrease)% Income from contracts, grants and services rendered 311 000254 642(56 358)300 666(15.3) Rental income1 5002 9271 4272 815 4 Recoveries0330 0 Other income14 3956 295(8 100)5 107 23.3 Interest received investment20 00017 176(2 824)15 632 9.9 Government grants and subsidies245 563249 0023 439237 899 4.7 Total592 458530 045(62 413)562 119(5.7)

18. Conclusion 1.Major research contributions in 2012/13 – even mentioned in the ‘State of the Nation’ address 2.Received a clean audit in 2012/13  Revised Strategic Plan in 2013 – new strategic goals & targets  Raising standards to world-class – focus on impact 3.Revitalisation of the MRC almost complete  Increased funding for new drugs, vaccines and diagnostics  Re-organisation of intramural research for high impact  New funding – rejuvenating health research in Universities 4.Continuing fund-raising: +R100m p.a. to double budget 5.New knowledge to improve Health of the Nation