1. 6/24/2018
PRESENTATION OF THE NDA ANNUAL REPORT (2016/2017) TO THE PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT 04 OCTOBER 2017

2. PRESENTATION OUTLINE Purpose of the presentation
General Information about NDA
Programme Performance Information
Report on Governance
Human Resource Performance Report
Audited Financial Statements
Challenges and Recommendations

3. PURPOSE
To present the 2016/17 Annual Report comprised of the following sections:
Performance Information
Human Resource Report
Governance Report
Audited Annual Financial Statements
To detail the organisational performance challenges experienced by the NDA
To present the remedial measures to address the performance challenges

4. GENERAL INFORMATION

5. LEGISLATIVE MANDATE Primary Mandate Secondary Mandate
To contribute towards the eradication of poverty and its causes by granting funds to civil society organisations for the purpose of:
To promote consultation, dialogue and sharing of development experience between the CSOs and relevance organs of state through:
Carrying out programmes and projects aimed at meeting development needs of the poor
Strengthening the institutional capacity of other civil society organisations involved in direct service provision to the poor communities
Debating development policy
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

6. ORGANISATIONAL VALUES
STRATEGIC OVERVIEW
6/24/2018
Vision: A society free from poverty
Mission: Facilitate sustainable development by strengthening CSOs involved in poverty eradication through enhanced capacity building with grant funding and research
Integrity
Dignity
Empowerment
Accountability
Transparency
Excellence
Partnering
ORGANISATIONAL VALUES

7. CSO DEVELOPMENT FRAMEWORK

8. ORGANISATIONAL STRUCTURE
6/24/2018
ORGANISATIONAL STRUCTURE
Minister of Social Development
NDA Board
Chief Executive Officer
Development Management and Research
Research (and Policy)
Development (Product Development)
MERL
Office of the COO
Grant Funding and Resource Mobilisation
Operations Management
Office of the CFO
Finance
Supply Chain
Corporate Services
Human Resources
Communications
and Marketing
ICT
Support Services
Performance Planning and Corporate Reporting
Company Secretary
Legal and Risk Services
Stakeholder Management
Internal Audit
The structure was amended due to transition. The NDA is in the process of finalising it

9. PROGRAMME PERFORMANCE

10. PROGRAMME 1: GOVERNANCE AND ADMINISTRATION
Strategic Objective: To develop and strengthen internal systems, processes and human capability to deliver efficiently and effectively on the NDA mandate
Performance indicator
Planned target 2016/17
Actual achievement 2016/17
Deviation from planned target
Reasons for Deviation 1.
Number of Executive (EXCO) meetings held 12
Target met 2.
Number of partnership agreements concluded and signed 19 22 3
Over-achievement was due to more partners coming on board 3.
Timeous submission of strategic plan & Annual Performance Plan to Executive Authority
Submit within prescribed timeframes
Submitted within prescribed timeframes 4.
Number of hits reached trough NDA website and social media platforms
80 000
91 814
11 814
Adverts for vacant positions attracted more hits than anticipated 5.
Percentage of staff audited for skills development
100%

11. PROGRAMME 1: GOVERNANCE AND ADMINISTRATION…
6/24/2018
Strategic Objective: To develop and strengthen internal systems, processes and human capability to deliver efficiently and effectively on the NDA mandate
Performance indicator
Planned target 2016/17
Actual achievement 2016/17
Deviation from planned target
Reasons for Deviation 6.
Percentage of targeted employees attending identified skills development programmes
60%
Target met 7.
Percentage reduction in regulatory audit findings
80% 0%
Increase in non-compliance with laws 8.
Completed and functional Integrated Information system
Approved ICT strategy plan
Service level agreement and project plan
100%
Delays in appointment of service provider to develop strategy 9.
Number of district offices established and functional 9 10 1
0% achievement on target to reduce 80% reduction in regulatory audit findings was due to very low moral due to transition and vacancies. Also refer to slide 19

12. PROGRAMME 2: CSO MOBILISATION
Strategic Objective: To conduct CSO engagements, assessments and needs analysis in identified priority wards.
Performance indicator
Planned target 2016/17
Actual achievement 2016/17
Deviation from planned target
Reasons for Deviation 1.
Number of social engagements with CSOs on community development
2 030
3 120
1 090
Target exceeded due to participation in Mikondzo programme 2.
Number of CSO structures
formalised in priority wards
630
631 1
Target met 3.
Number of CSOs assessed in priority wards to determine appropriate capacity-building interventions
4 357
2 327 4.
Number of CSOs assisted to register with appropriate registration authority in priority wards
713 83
Target exceeded due to partnership with registration authorities 5.
Number of CSOs assessed and referred to other agencies for technical and financial support in priority wards
406
1 403
997
Target exceed due to partnership with other agencies

13. PROGRAMME 3: CSO CAPACITY BUILDING
Strategic Objective: To increase accessibility to capacity strengthening interventions to CSOs with the aim of improving the quality of services.
Performance indicator
Planned target 2016/17
Actual achievement 2016/17
Deviation from planned target
Reasons for Deviation 1.
Number of CSOs trained and mentored to comply with the Nonprofit
Organisations Act (1997)
3 000
3 065 65
Improved partnerships with the Provincial Departments of Social Development 2.
Number of CSOs capacitated in CSO management
2 000
2 880
880
Improvement in collaborative partnerships 3.
Number of NPOs trained in community development practice
450
706
256 4.
Number of NDA-funded projects exited into sustainable programmes
140
168 28
The districts improved the reporting and monitoring turnaround

14. PROGRAMME 4: RESEARCH AND KNOWLEDGE MANAGEMENT
Strategic Objective: To conduct, collate and disseminate research and evaluations that inform national development agenda
Performance indicator
Planned target 2016/17
Actual achievement 2016/17
Deviation from planned target
Reasons for Deviation 1.
Number of research reports, evaluation reports and policy briefs produced
16 reports produced
Target met 2.
Number of best-practice publications produced
6 publications
10 publications 4
Demand for additional information 3.
Number of dissemination
sessions for research reports, evaluation reports, policy briefs and best-practice publications
conducted
6 Sessions
7 Sessions
1 Session
Partnerships with STATS SA on SDG domestication dissemination sessions 4.
Number of people who attended research reports, evaluation reports, policy briefs and best practice dissemination sessions
240 People
465 People
225 People
Partnerships with STATS SA on SDG domestication and NDA book launch 5.
Revised NDA monitoring and evaluation framework and tools approved
Approved M&E framework and tools

15. REPORT ON GOVERNANCE

16. NDA BOARD AND COMMITTEES
The NDA Board consists of 12 members and it operated through the following committees for the 2016/17 financial year:
Management Committee
Audit and Risk Committee
Human Resource and Remuneration Committee
Projects, Research and Development Committee
Stakeholder and Resource Mobilisation Committee
The Risk Management strategy was revised and approved by the Board
The Internal Audit Unit compiled an annual coverage plan for management of prioritised risks

17. BOARD EVALUATION OF CONTROLS
The NDA Board assisted by the Audit and Risk Committee have reviewed:
The effectiveness of the internal control systems;
The operational risks covered in the scope of internal and external audit;
The adequacy, reliability and accuracy of financial information;
Any accounting and auditing concerns identified through audits; and
Compliance with legal, accounting and regulatory frameworks
The Board has also evaluated the Annual Report and discussed with the Auditor General material aspects of the report. 1

18. HUMAN RESOURCE REPORT

19. HUMAN RESOURCE PROFILE OF THE NDA
The NDA had 180 employees for the financial year 2016/17
Africans are the pre-dominant racial group, with Females being in the majority at 58,9%
The NDA has three (3) employees living with a disability which translates to 1,8% of the staff complement
The vacancy rate is 22%, whilst, the turnover rate of the NDA is at 6,7% following the departure of 12 employees
Four (4) employees attracted disciplinary action due to non-compliance with NDA policies and procedures
1,3% of the personnel budget has been spent on training and development, whilst, 3,3% has been spent on performance rewards

20. PERSONNEL COST PER PROGRAMME
Total Expenditure for the entity (R’000)
Personnel Expenditure (R’000)
Personnel exp. as a % of total exp.
No. of employees
Average personnel cost per employee (R’000)
Programme 1: Governance & Administration
31 291
14% 58
539
Programme 2: CSO Mobilisation
72 153
37 233
17% 99
376
Programme 3: CSO Capacity Building
40 741
8 872 4% 16
554
Programme 4: Research and Knowledge Management
4 888
3 748 2% 7
536
Total
81 144
37%
180
450

21. AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

22. STATEMENT OF FINANCIAL PERFORMANCE FOR YEAR ENDED 31 MARCH 2017
PROGRAMME NAME
AUDITED ACTUALS
APPROVED BUDGET
% SPENDING
REVENUE R R
103%
TOTAL EXPENDITURE R
96%
PROGRAMME 1: ADMINISTRATION R R
91,1%
PROGRAMME 2 : CSO MOBILISATION R R
102,5%
PROGRAMME 3: CSO CAPACITY BUILDING R R
98,6%
RESEARCH AND DEVELOPMENT R R
92%
SURPLUS R - 4%

23. NOTES TO STATEMENT OF FINANCIAL PERFORMANCE
INTRODUCTION
The NDA continues to operate under stringent financial constraints due to financial allocation increasing at 5% year on year while CPI averaged 6.5%. The resources are decreasing in real term.
Key organisational expenses such as rentals of offices and employment costs increased by 8% and 7% respectively in the previous financial year.
The entity is reporting a surplus of R 16,5million in 2017

24. NOTES TO STATEMENT OF FINANCIAL PERFORMANCE
REVENUE
Revenue is made up of three key sources as indicated in the table below.
Revenue decreased by 7% year on year from R254 million in 2016 to R237 million in 2017
The main contributor to the reduction in revenue of R5 million is attributable to reduction in conditional grants received from other government departments.
2017
2016
% CHANGE
Allocation R R
5,2%
Conditional grants R R
(41%)
Other Income R R
(217,1% R R
(7,1%)

25. NOTES TO STATEMENT OF FINANCIAL PERFORMANCE
TOTAL EXPENDITURE
A total of R 220,8 million was spent against allocated budget of R 230million
representing 96% of the allocated annual budget.
MANDATE EXPENSES ( R 117,8 million spent vs R 117,1 million budget)
Mandate expenditure of R117 ,8 million represents 53% of total actual
expenditure to the value of R 221million was spent as follows :
- Programme 2: R 72 ,2 million spent vs R 70,4million budget ( 102%)
- Programme 3: R 40,7 million spent vs R41,3 million budget ( 98,6%)
- Programme 4 : R 4,9 million spent vs R 5,3 million budget ( 92%)
ADMINISTRATION EXPENSES
R 102,9 million was spent on administration against budget of R112 million representing 91,1% of annual allocation. The 8,9% variance was partly due to delays in establishment of district offices and finalisation of the ICT strategy.

26. STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017

27. NOTES TO THE STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)
KEY BALANCE SHEET PERFOMANCE
Current Assets
The entity has total current assets of R102 million in 2017, with cash balances to the value of R 101 million making up 99% of total current assets
Cash balances are committed as follows:
Amounts
Third party funds R
Other current liabilities R
Project commitments R
Committed expenses purchase orders R
Unencumbered cash R R

28. NOTES TO THE STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)
KEY BALANCE SHEET PERFOMANCE
Current Assets liabilities
Total liabilities are made up as follows:
Amount %
Unutilized third party funds R
38%
Payables (Funds due to creditors) R
20%
Employee benefits (leave provision & 13th cheque) R
27%
Provision for project payment R
15% R
100%

29. CHALLENGES AND RECOMMENDATIONS1

30. CHALLENGES EXPERIENCED IN 2016/17
6/24/2018
The repositioning and the restructuring of the organisation created programme implementation challenges
The expansion to the districts meant new personnel at district level had to be trained on programme implementation and this took longer than anticipated
The CSO Development framework was finalised towards the end of the 2016/17 financial year which had a major impact on the finalization of the tools used as Portfolio of Evidence (POE) for programme reporting
Last bullet relates to the material finding of the AG. The AG was not informed on time of the tool and the work that was already done

31. REMEDIAL MEASURES
We have stabilised the programme implementation in the districts
We have developed an Audit Turnaround Strategy to address the performance information shortcomings
We have finalised the development of the tools for reporting on performance information
We have trained the Development Officers on the CSO development framework and its related tools

32. 6/24/2018
Thank you
THANK YOU