1. PRESENTATION OF THE NDA 2013/14 ANNUAL REPORT TO THE PORTFOLIO COMMITTEE OF SOCIAL DEVELOPMENT 17 OCTOBER 2014

2. PURPOSE To present the NDA 2013/14 Annual Report to the Portfolio Committee of Social Development for consideration. 2

3. CONTENT  PURPOSE  INTRODUCTION  Role and Mandate  Mission, Vision and Values  Organisational Structure  NDA STRATEGIC FOCUS AREAS  Strategic Goals and Objectives  Board Priorities  CHANGES TO PLANNED TARGETS AND PERFORMANCE INDICATORS  PROGRAMME PERFORMANCE  SUMMARY OF 2013/14 AUDITED PERFORMANCE  AUDITED FINANCIAL STATEMENTS AS AT 31 MARCH 2014 3

4. NDA ROLE AND MANDATE ROLE AND MANDATE ACCORDING TO THE ‘ACT’ In terms of the National Development Agency (NDA) Act (Act No 108 of 1998 as amended), NDA was mandated to contribute towards the eradication of poverty and its causes by granting funds to civil society organisations (CSOs) to: Implement development projects in poor communities, and Strengthen the institutional capacity of CSOs that provide services to poor communities. 4

5. NDA MISSION, VISION AND VALUES A society free from poverty VISION Facilitate sustainable development by strengthening civil society organisations involved in poverty eradication through enhanced grant funding and research. MISSION Integrity Dignity Empowerment Accountability and Responsibility Transparency Excellence Partnering VALUES 15

6. 6 ORGANISATIONAL STRUCTURE

7. HUMAN CAPITAL 7 The NDA currently has a staff compliment of 138. The diagram below illustrates the percentages of mandate vs. support staff within the NDA programmes.

8. NDA STRATEGIC FOCUS AREAS The NDA focused on the following programmes in support of government priority areas on poverty eradication:  Early Childhood Development  Food Security  Income Generation (Programmes and Projects)  Capacity Building 8

9. STRATEGIC GOAL AND OBJECTIVES 2013/14 STRATEGIC GOAL  To leverage strategic partnerships to eradicate poverty to enable poor communities to achieve sustainable livelihoods. STRATEGIC OBJECTIVES  To carry out programmes or projects aimed at meeting the development needs of poor communities  To undertake research and publications aimed at providing the basis for development policy  To strengthen the institutional capacity of civil society organisations  To promote and maintain organisational excellence and sustainability 9

10. BOARD PRIORITIES 10

11. BOARD PRIORITIES Parallel to the implementation of the NDA APP, the Board identified some priority areas that would complement NDA’s service delivery; namely:  Implementation of Early Childhood Development (ECD) Campaign  Expansion of the Capacity Building Programme  Implementation of NDA Programme Management Unit (PMU)  Conversion of NDA Provincial Offices into Advisory Centres  Increase NDA Brand Visibility 11

12. IMPLEMENTATION OF EARLY CHILDHOOD DEVELOPMENT (ECD) CAMPAIGN  During the year under review, the NDA with the leadership of the Minister of Social Development and the Board launched the Adopt an ECD Campaign which was aimed at the NDA leveraging its limited capacity through partnerships with different stakeholders to contribute to implementation of an ECD programme nationally.  Through these partnerships an amount R560K was solicited from private donors.  The coordination of the Annual SA ECD Awards has been handed over by ABSA to the NDA. The NDA will be hosting the event for the first time in March 2015. 12

13. CAPACITY BUILDING PROGRAMME – DSD PILOT PROJECT 13  The programme was funded by five provinces - North West, Northern Cape, Eastern Cape, Limpopo and KwaZulu Natal  2 059 CSOs and NPOs were capacitated in Governance, Financial management, Project management, Resource mobilisation and Conflict management  4 384 members of CSOs and NPOs staff attended capacity building interventions  236 ECD practitioners enrolled in a NQF level 4 ECD training programme  80% improvement has been reported in knowledge and practice in areas they were capacitated on thus far

14. CAPACITY BUILDING – ACHIEVEMENT AGAINST TARGET 14

15. STAKEHOLDER RELATIONS & PMU – 2013/14 SIGNED AGREEMENTS NAME OF ORGANISATIONPROGRAMMEAMOUNT DSD LimpopoCapacity BuildingR 3 000 000 DSD Eastern CapeCapacity BuildingR 19 000 000 DSD KZNCapacity BuildingR 16 606 722 DSD Northern CapeCapacity BuildingR 2 680 000 DSD North WestCapacity BuildingR 6 734 000 Seriti InstituteCollaboration in all NDA programmesN/A SANEDICollaboration/ Alternative EnergyR 8 115 380 National Lotteries BoardCapacity BuildingN/A Ithala LimitedCollaboration/ ECD CampaignR100 000 KZN WildlifeAdopt an ECDR100 000 DSD Free StateCapacity BuildingR 3 600 000 DSD KZNMobile ECDR 1 700 000 SASSASchool Uniform CooperativesR 8 000 000 DTI (ECF)Income Generation / Food SecurityR 25 000 000 DSD North WestCapacity Building / Food SecurityR 3 540 000 TOTALR 98 176 102 15

16. ESTABLISH NDA ADVISORY CENTRES PILOT SITES During the year under review the NDA established 28 Advisory centres which served as repository for information to stakeholders on NDA, SASSA and DSD. These will also cover information on Government programmes. The table below depicts the geographic spread of the centres; NoProvincial OfficeNo of sitesInformation Officers 1Free State 32 2Limpopo 33 3Gauteng 32 4Mpumalanga 43 5Eastern Cape 33 6Northern Cape 32 7North West 33 8KZN 33 9Western Cape 32 #Total 2823 16

17. ENHANCING NDA VISIBILITY AND BRAND  Publicity to the value of R3.1m was solicited in various electronic and print media platforms for NDA funded projects and the Adopt-an-ECD campaign  Good relations and partnerships established with media houses such as The New Age, SABC 2. ANN7, Vuka Afrika and Top Women in Business and Government.  Social media platforms (Twitter and Facebook) were used to improve NDA visibility. 17

18. PROGRAMME PERFORMANCE 18

19. SUMMARY OF 2013/14 NDA PERFORMANCE INFORMATION NDA was audited on thirty one (31) targets as opposed to initial thirty four (34). An amendment to request deferment of three (3) targets to 2014/15 was approved by the Minister of Social Development.  Twenty nine (29) – Targets were achieved  Two (2) – Targets were not achieved  Three (3) – Targets were deferred to 2014/15 FY NDA TARGET 2013 / 2014 ACHIEVEMENT 2013 / 2014 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 80%93%13% 19

20. CHANGES TO PLANNED TARGETS AND PERFORMANCE INDICATORS NOKEY PERFORMANCE INDICATOR 2013/14 ANNUAL TARGET PROPOSAL 1.5Percentage (%) completion of design of an integrated ICT. 100%Defer to next financial year (2014/15) 1.7Percentage (%) completion of development of an integrated ICT system 30%Defer to next financial year (2014/15) 1.8Ratio of Mandate to Admin cost achieved 57:4355:45 Programme 4: Governance and Administration 20

21. PROGRAMME 1: DEVELOPMENT MANAGEMENT To carry out programmes or projects aimed at meeting the development needs of poor communities 21

22. PROGRAMME 1: DEVELOPMENT MANAGEMENT NOPERFORMANCE INDICATORPLANNED TARGET 2013/2014 ACTUAL ACHIEVEMENT 2013/2014 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 1Rand value of allocation to projects and programmes R65mR 71.5mR6.5m 2Rand value allocated to ECD programme R20mR 22.0mR2.9m 3Rand value allocated to Food Security programme R20mR 15.7m(R4.3m)* 4Rand value allocated to Income Generation programme R25m R 32.9mR7.9m 5Number of projects and programmes funded (ECD, Food Security and Income Generation 657510 * Not achieved 22

23. PROGRAMME 1: DEVELOPMENT MANAGEMENT NOPERFORMANCE INDICATORPLANNED TARGET 2013/2014 ACTUAL ACHIEVEMENT 2013/2014 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 6 Number of Food Gardens on ECD sites funded 9515055 7 Rand value of funds mobilized for poverty eradication programmes R50mR98.2mR42.2m 8 Number of children enrolled in ECD sites 309557142619 9 Number of ECD sites receiving core funding from NDA 20 0 10 Number of ECD sites funded for infrastructure improvement 153924 23

24. PROGRAMME 1: DEVELOPMENT MANAGEMENT NOPERFORMANCE INDICATORPLANNED TARGET 2013/2014 ACTUAL ACHIEVEMENT 2013/2014 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 11 Number of beneficiaries of NDA funded projects and programmes 23406039 3699 12 Number of jobs created in Income Generation 348690 234 13 Number of jobs created in ECD 91 18594 14 Number of jobs created in Food Security 121 18564 24

25. PROGRAMME 2: RESEARCH AND DEVELOPMENT To undertake research and publications aimed at providing the basis for development policy 25

26. PROGRAMME 2: RESEARCH & DEVELOPMENT NOPERFORMANCE INDICATORPLANNED TARGET 2013/2014 ACTUAL ACHIEVEMENT 2013/2014 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 15Number of Mid-term evaluation reports on NDA funded projects produced 728210 16Number of Closeout evaluation reports on NDA funded projects produced 66682 17Number Performance Monitoring reports on NDA funded projects produced 45472 18Number of Case studies on NDA programme areas produced 671 26

27. PROGRAMME 2: RESEARCH & DEVELOPMENT NOPERFORMANCE INDICATORPLANNED TARGET 2013/2014 ACTUAL ACHIEVEMENT 2013/2014 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 19Number of Good practice publications on NDA programme areas produced 660 20Number of Research Reports on NDA programme areas produced 341 21Number of Position papers / policy briefs on NDA programmes produced 561 27

28. PROGRAMME 3: CAPACITY BUILDING To strengthen the institutional capacity of civil society organisations 28

29. PROGRAMME 3: CAPACITY BUILDING NOPERFORMANCE INDICATORPLANNED TARGET 2013/2014 ACTUAL ACHIEVEMENT 2013/2014 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 22Number of civil society organisations (CSOs) provided with capacity building interventions in CSO management and technical skills 23920591820 23Number of beneficiaries from capacity building interventions 117443843210 24Number of NDA funded Early Childhood Development (ECD) practitioners enrolled in NQF level 4 Training 206 23630 25Percent (%) increase of CSOs demonstrating improved implementation 80% 0 29

30. PROGRAMME 4: GOVERNANCE AND ADMINISTRATION To promote and maintain organisational excellence and sustainability 30

31. PROGRAMME 4: GOVERNANCE AND ADMINISTRATION NOPERFORMANCE INDICATORPLANNED TARGET 2013/2014 ACTUAL ACHIEVEMENT 2013/2014 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 26Percent (%) of vacancy rate against approved organisational structure maintained 5%4.92%0.8% 27Percent (%) of staff who achieved a performance rating of 3 and above 95%97.3%2.36% 28Percent (%) of positive rating of staff perceptions achieved 65%66%1% 29Percent (%) of positive rating on NDA brand awareness achieved 65%60%(5%)* * Not achieved 31

32. PROGRAMME 4: GOVERNANCE AND ADMINISTRATION NOPERFORMANCE INDICATOR PLANNED TARGET 2013/2014 ACTUAL ACHIEVEMENT 2013/2014 DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT 30 Unqualified report by Auditor-General Unqualified audit opinion No deviation 31 Number of Advisory Centres pilot sites 27281 32

33. FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2014 33

34. SUMMARISED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2014 134

35. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE 1. REVENUE (RESOURCES) 1.1 Recognised Transfer Revenue is made up as follows: The growth in transfer revenue of 18% year on year was mainly driven by increase in funds mobilised from partners and government departments. The NDA allocation from DSD increased by only 3% from R 161 million in 2013 to R 171 million in 2014. 1.2. Finance Income Interest income increased by 2% year on year due to reducing cash balances. 2. MANDATE COSTS 2.1 Commitments to projects from NDA allocation 82 Projects worth R78.9 million were approved by PAC in 2013 financial year, all these projects were contracted and committed by end of March 2013. The commitments of R 72.9 million per Income statement are made up as follows: o - Current year commitments - R 78,9 million o - Prior year commitments - R 0.573 million o - Ring fenced funds 2013 Commitments - (R 6.5million) o - Net commitments per Income Statement - R 72.9million) 2013/14 Allocation received from DSDR 171.7mR 166.3m Funds mobilised from 3 rd PartiesR 44.2mR16.7m 35

36. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE 2. TOTAL EXPENSES Total expenses increased by 10.9% year on year driven mainly by the increase in mandate expenses. 2.1 MANDATE COSTS Commitments to projects from NDA allocation  82 Projects worth R78.9 million were approved by PAC in 2013 financial year, all these projects were contracted and committed by end of March 2013.  The commitments of R72.9 million per Income statement are made up as follows: 2014 Current year commitmentsR 78,9 million Prior year commitmentsR 0.573 million Ring fenced funds 2013 Commitments(R 6.5million) Net commitments per Income Statement(R 72.9million) 36

37. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE  Mandate Expenditure  During the year under review, 64% (R155m) of the total cost (R241m) was spent on direct programmes mandated by the NDA Act (Service delivery).  This ratio of 64% was driven mainly by projects implemented on behalf of third parties totalling R 44m (2013 R16.6m).  The spending on capacity building increased by massive 142% in line with increased strategic focus towards building the capacity of Civil Society Organisations.  Included in the R44m of third party projects was R30.2m spent on the NPO capacity building programme implemented on behalf of provincial departments of Social Development.  A total of R37m was spent towards building the institutional capacity of NPO’s and CSO’s 37

38. COMMENTARY ON THE STATEMENT OF FINANCIAL PERFORMANCE 2.2 ADMNISTRATION COSTS  During the period under review 36% (R85.9m) of the total cost (R241m) was spent on administration.  Administration Expenses are driven mainly by compensation of employees and infrastructure costs.  Year on year the admin costs have increased by 7% which is in line with increase in CPI 38

39. STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2014 39

40. COMMENTARY ON STATEMENT OF FINANCIAL POSITION 3.Cash and Cash Equivalents The Cash and Bank balances held are committed as follows as follows: The 15,7% increase in cash balances is largely due increase in cash managed on behalf of third parties 20142013 Tranches owing to approved projectsR 69.2mR 83.8m Unspent portion of third party managed fundsR 41.1mR 12.1m Cash due to creditors and employeesR 16.2mR 11.4m Unencumbered Cash-R 3.6m TOTAL CASH BALANCESR 126.1mR 108.9m 40

41. COMMENTARY ON STATEMENT OF FINANCIAL POSITION 4. Exchange Receivables 5. Liabilities The Cash and Bank balances held are committed as shown in 1. above. 20142013 Rental Deposits for leased officesR 1.6mR 1.4m Other receivables and employee advancesR 0.4m TOTAL RECEIVABLESR 2.0mR 1.8m 41

42. CASH-FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2014 42

43. Thank you THANK YOU