1. SPORT AND RECREATION DISTRIBUTING AGENCY PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION 17 AUGUST 2004 National Lotteries Board Private Bag X101 Brooklyn Square 0075 PRETORIA South Africa Tel: +27-12-362 0306 Fax: +27-12-362 3899

2. A. BACKGROUND The National Lotteries Distribution Trust Fund was established in terms of the Lotteries Act No. 57 of 1997. The Act identifies as good causes, the following broad categories.  Reconstruction and Development Program  Charities  Arts, Culture and National Heritage (Which includes the environment)  Sport and Recreation  Miscellaneous Purposes

3. BACKGROUND - Continue Each of the categories qualifies for a minimum of 10% of the amount in the National Lottery Distribution Trust Fund. In February 2001, the Sport and Recreation Distributing Agency convened a policy guidelines workshop. The agency identified three priority areas of funding considering development needs in the Sport and Recreation sector. The Priority areas of funding are as follows:  Sports equipment for existing facilities and/or clubs.  Upgrading and/or renovation of existing sport facilities – Indoor and outdoor stadiums and grounds.  Capacity Building in sport i.e. Training of managers, Coaches, Administrators, Technical Officials.

4. B. GOALS AND OBJECTIVES 1. Short-Term  Programmed for the training of the first level of sport and recreation leadership.  1 st Level of leadership trained and deployed.  Establishment of coordinated strategic partnership with institutions and buy in by all sport and recreation role players/Stakeholders.  Establishment of coordinated monitoring and evaluation mechanism.  Setting up of a database and determination of the baseline in each province.

5. GOALS AND OBJECTIVES - Continue 2. Medium-Term  A significant spread/distribute of trained people in many districts.  A visible increase of sport and recreation structures, activities, and physical infrastructure in all provinces.  The mobility of athletes, officials, administrators etc from this initiative into the mainstream of South African Sport and Recreation.  A populated database of resources and programs.

6. C. LOTTERIES ACT REQUIREMENTS  Lotteries Act stipulations with regard to adjudication of applications  Any Juristic person meeting the prescribed requirements may in the prescribed form apply to the distributing agency for a grant.  The Distributing Agency to allocate the funds fairly and equitably amongst all persons who meet the prescribed requirements.  The Lotteries Act stipulates that a minimum of 5% of the funds should be allocated to each of the nine provinces.

7. D. FINANCIAL STATS – Since Inception 2001-20022002-20032003-2004 Total Applications Received R1, 624,466,565R1,546,146,267R5,291,009,155 Total Commitment/Approval R 71, 674, 387R211,136,311R247,677,289.97 Total Disbursed/Paid-Up R 67,384,075R126,186,239R67,591,177 Total Rejection R1, 127,732,151R1,146,157,847R1,273,531,233.96 Amount made available by the Minister for Allocation R 98, 900, 000R224,000,000R363,000,000

8. PROVINCIAL SPREAD – Since Inception 2001-2002%2002-2003%2003-2004% 1. Eastern CapeR11, 582,134.8916%R30, 739,481.5115%R29,545,059.5012% 2. Free StateR 2,896,583.004%R11, 986,496.006%R18,129,219.517% 3. GautengR12, 676,728.9218%R19, 705,622.709%R26,199,323.2611% 4. Kwazulu NatalR10, 856,527.9215%R18, 761,913.009%R5,691,630.002% 5. LimpopoR 5,026,066.687%R11, 527,779.005%R3,387,890.001% 6. MpumalangaR 3,695,400.005%R11, 892,651.006%R5,629,005.002% 7. Northern CapeR 3,466,321.005%R22, 366,971.0011%R27,217,342.0011% 8. North WestR 3,185,276.004%R13, 029,094.006%R25,580,817.0010% 9. Western CapeR12, 697,270.9218%R35, 731,734.7717%R34,592,002.0014% 10. NationalR 5,592,078.008%R35, 394,568.2417%R71,705,001.7029% Total R71, 674,387.33 100%R211, 136,311.22100 % R247,677,289.97100 %

9. E.CALLENGES AND PROBLEMS  Lack of co-coordinated approach to contribute to the general development of Sport and Recreation.  Lack of capacitated sports structures to be used as delivery vehicles for sport development through the funding provided by National Lotteries Distribution Trust Fund.  Lack of marketing plan to showcase the impact of lotteries funding  Lack of stakeholders’ involvement in the planning process (i.e. Provincial Governments, National Federations, Municipalities etc.)  Project funding vs. Grant funding.  The agency to address the gap between rural and urban-based spread of funded projects.

10. F.REVIEW AND CHANGE OF STRATEGIC APPROACH In April 2004, the Sport and Recreation Distributing Agency convened a strategic meeting where the following strategic approach were initiated:  That a Pro-Active approach is required to ensure that good impact is achieved and the lives of sports people are changed for the better, which means that more funds will be dedicated to this approach. The agency will identify suitable structures to effect the necessary delivery.  Re-Active approach, this approach will enable structures that are not identified through the Pro-Active approach to apply..

11. CONTENT OF THE STRATEGIC APPROACH - Continue Pro-Active Approach The following organizations have been identified to apply in the Pro-Active approach:  1. National Federations (Provincial Federations through the  2. Local Municipalities  3. Macro Bodies  4. Sports Trust  5. Provincial Academies of Sport  6. Tertiary Institutions The Pro-Active approach would be allocated 85% of the total budget.

12. CONTENT OF STRATEGIC APPROACH Continue Pro-Active Approach The following priorities of funding have been identified Capacity Building Programs  Basic/Generic Capacity Building Programs – Provincial Academies of Sport to apply in this category. The National Federation should assist the Academies to identify the needs.  Sport Specific Capacity Building Programs – National Federations to apply in this category, however the application should be in partnership with the Tertiary Institution. The partnership should be in such way that the Tertiary Institution serves as service providers.  The application should be accompanied by a Business covering 4 years and should be a comprehensive plan.  Outreach Programs – Club/CBO’s in partnership with the tertiary institution in their respective areas.

13. CONTENT OF STRATEGIC APPROACH Continue Pro-Active Approach Infrastructure Development  Outreach Programs – Club/CBO’s in partnership with the tertiary institution in their respective areas.  Applications from National Federations and Provincial Federations wherein the ownership rests with the Federation or the Local Municipalities. Where the ownership rests with municipalities, the parties should submit a memorandum of understanding and a council resolution approving the upgrading of the sports facilities  Applications from the Municipalities, should preferably be part of their integrated development plan, the applications should also be accompanied with the council resolution approving the upgrading of the sports facilities and a commitment letter to maintain facilities.  Applications from Tertiary Institutions, which has ties with the National and Provincial federations with regard to capacity building programs.

14. CONTENT OF STRATEGIC APPROACH Continue Pro-Active Approach Sports Equipment  Sports Trust to apply on behalf of the Clubs etc, which do not have Audited Financial Statements.  National Federations to apply on behalf of their affiliates.

15. CONTENT OF STRATEGIC APPROACH Continue Pro-Active Approach Major Events  In the case of SA Games, Athletes that become champions at the events should be considered for bursary or scholarship through the Provincial Academy of Sport, however the studies would have to be sports related.  Only Macro bodies and National Federations can apply in this category.