Independent Development Trust Independent Development Trust

2013/14 – 2017/18 Strategic Plan & 2013/14 – 2017/18 Strategic Plan &

2013/14 Annual Performance Plan2013/14 Annual Performance Plan

Independent Development Trust Independent Development Trust

2013/14 – 2017/18 Strategic Plan & 2013/14 – 2017/18 Strategic Plan &

2013/14 Annual Performance Plan2013/14 Annual Performance Plan

ContentContent

Compliance Statement

Presentation of Strategic Plan

Recommendations

Compliance Statement

Presentation of Strategic Plan

Recommendations

Compliance StatementCompliance StatementIn terms of Section 55 (2) (b) and Section 56 of the Constitution, the National Assembly must provide mechanisms to maintain oversight of any organ of state and may summon/require any institution to report to it.

The IDT, a Schedule 2 Public Entity, is thus:Presenting its 2013/14-2017/18 Strategic Plan and 2013/14 Annual Performance Plan (APP) to enable the Portfolio Committee to exercise oversight and to recommend the same to ParliamentReporting that the Strategic Plan and APP was:

Lodged with the Executive Authority and National Treasury on 27 February 2013; Approved by the Minister on 8 March 2013 as evidenced by the Foreword, Official Sign-off and Shareholder CompactTabled in Parliament on 13 March 2013

In terms of Section 55 (2) (b) and Section 56 of the Constitution, the National Assembly must provide mechanisms to maintain oversight of any organ of state and may summon/require any institution to report to it.

The IDT, a Schedule 2 Public Entity, is thus:Presenting its 2013/14-2017/18 Strategic Plan and 2013/14 Annual Performance Plan (APP) to enable the Portfolio Committee to exercise oversight and to recommend the same to ParliamentReporting that the Strategic Plan and APP was:

Lodged with the Executive Authority and National Treasury on 27 February 2013; Approved by the Minister on 8 March 2013 as evidenced by the Foreword, Official Sign-off and Shareholder CompactTabled in Parliament on 13 March 2013

2013/14- 2017/18 Strategic Plan2013/14- 2017/18 Strategic Plan

Strategic Plan: Table of Contents (1)Strategic Plan: Table of Contents (1)

FOREWORD: EXECUTIVE AUTHORITYOFFICIAL SIGN-OFFSTATEMENT: BOARD CHAIRPERSONPART A:

VISIONMISSIONOUR APPROACHVALUES & OPERATING PRINCIPLESLEGISLATIVE AND OTHER MANDATES

Legislative mandatesPolicy mandates

SITUATIONAL ANALYSISPerformance EnvironmentOrganisational EnvironmentKey Issues relevant to the IDTDescription of the Strategic Planning Process

FOREWORD: EXECUTIVE AUTHORITYOFFICIAL SIGN-OFFSTATEMENT: BOARD CHAIRPERSONPART A:

VISIONMISSIONOUR APPROACHVALUES & OPERATING PRINCIPLESLEGISLATIVE AND OTHER MANDATES

Legislative mandatesPolicy mandates

SITUATIONAL ANALYSISPerformance EnvironmentOrganisational EnvironmentKey Issues relevant to the IDTDescription of the Strategic Planning Process

Strategic Plan: Table of Contents (2)Strategic Plan: Table of Contents (2)

 PART B: STRATEGYSTRATEGIC GOALSSTRATEGIC VISION IMPLEMENTATIONKEY PERFORMANCE MEASURES & INDICATORSGOVERNANCE STRUCTURES

PART C: LINK TO OTHER PLANSFINANCIAL PLANRISK MANAGEMENT PLANFRAUD PREVENTION PLANMATERIALITY AND SIGNIFICANCE FRAMEWORKENVIRONMENTAL PLANCOMMUNICATIONS PLANINFORMATION TECHNOLOGY MANAGEMENT PLANKNOWLEDGE MANAGEMENT PLAN

 PART B: STRATEGYSTRATEGIC GOALSSTRATEGIC VISION IMPLEMENTATIONKEY PERFORMANCE MEASURES & INDICATORSGOVERNANCE STRUCTURES

PART C: LINK TO OTHER PLANSFINANCIAL PLANRISK MANAGEMENT PLANFRAUD PREVENTION PLANMATERIALITY AND SIGNIFICANCE FRAMEWORKENVIRONMENTAL PLANCOMMUNICATIONS PLANINFORMATION TECHNOLOGY MANAGEMENT PLANKNOWLEDGE MANAGEMENT PLAN

Strategic Plan: Table of Contents (3)Strategic Plan: Table of Contents (3)

APPENDICES2013/14-2015/16 BUDGET FRAMEWORK2013.13-2017/16 CORPORATE BUSINESS PLAN2013/14 ANNUAL PERFORMANCE PLANSHAREHOLDER COMPACTHIGH LEVEL ORGANOGRAM

APPENDICES2013/14-2015/16 BUDGET FRAMEWORK2013.13-2017/16 CORPORATE BUSINESS PLAN2013/14 ANNUAL PERFORMANCE PLANSHAREHOLDER COMPACTHIGH LEVEL ORGANOGRAM

Foreword: Executive AuthorityForeword: Executive Authority

Highlights the need for alignment to 2009-14 Medium-Term Strategic Framework (MTSF), Programme of Action and National Development PlanRecognises the IDT’s reach and effectiveness as a public sector programme management and development agency; and, its distinctive developmental approach to social infrastructure delivery 2013/14 is the Year of Delivery thus there is an expectation that the IDT will accelerate deliveryMindful of and committed to (together with the IDT Board) find a lasting solution to IDT’s financial sustainability and going concern challenges. The latter will include the transformation of the IDT with a revised legislative mandate, corporate form and business model to enhance its efficiency and effectiveness

Highlights the need for alignment to 2009-14 Medium-Term Strategic Framework (MTSF), Programme of Action and National Development PlanRecognises the IDT’s reach and effectiveness as a public sector programme management and development agency; and, its distinctive developmental approach to social infrastructure delivery 2013/14 is the Year of Delivery thus there is an expectation that the IDT will accelerate deliveryMindful of and committed to (together with the IDT Board) find a lasting solution to IDT’s financial sustainability and going concern challenges. The latter will include the transformation of the IDT with a revised legislative mandate, corporate form and business model to enhance its efficiency and effectiveness

Official Sign-OffOfficial Sign-Off

CERTIFIES THAT THE 2013/14- 2017/18 STRATEGIC PLAN AND 2013/14 ANNUAL PERFORMANCE PLAN

Was developed by the management of the Independent Development Trust (IDT) and approved by the Board of Trustees under the guidance of the Minister of Public Works;

Takes into account all the relevant policies, legislation and other mandates for which the IDT is responsible;

Takes cognisance of the resources available to the IDT; and

Accurately reflects the strategic outcome oriented goals and objectives which the IDT will endeavour to achieve during the 2013/14 financial year.

CERTIFIES THAT THE 2013/14- 2017/18 STRATEGIC PLAN AND 2013/14 ANNUAL PERFORMANCE PLAN

Was developed by the management of the Independent Development Trust (IDT) and approved by the Board of Trustees under the guidance of the Minister of Public Works;

Takes into account all the relevant policies, legislation and other mandates for which the IDT is responsible;

Takes cognisance of the resources available to the IDT; and

Accurately reflects the strategic outcome oriented goals and objectives which the IDT will endeavour to achieve during the 2013/14 financial year.

Statement: Board ChairpersonStatement: Board Chairperson

The Board assumed office on 1 July 2012. Comprises a competent team of professionals with a diverse range of expertise and knowledge, who fully understands the development landscape as well as the Board’s fiduciary duties as the Accounting AuthorityAppreciate that IDT is a national asset which has served the country for 23-yearsAssumed Office at a difficult time: IDT was in the throes of a Transformation process when its financial sustainability and going concern status was in jeopardy Having been assured of Government’s support for the continued existence of the IDT, the Board aims to bring stability and remove the uncertainty. Finalising the mandate and financial sustainability of the IDT, together with the Minister, is thus a critical deliverable for the Board.Concerned that IDT was only allocated R50m for 2013/14, and the same value for each of the outer years, an amount well below what the IDT needs to remain a going concern, deliver on its mandate and to meet the growing demand for its services

The Board assumed office on 1 July 2012. Comprises a competent team of professionals with a diverse range of expertise and knowledge, who fully understands the development landscape as well as the Board’s fiduciary duties as the Accounting AuthorityAppreciate that IDT is a national asset which has served the country for 23-yearsAssumed Office at a difficult time: IDT was in the throes of a Transformation process when its financial sustainability and going concern status was in jeopardy Having been assured of Government’s support for the continued existence of the IDT, the Board aims to bring stability and remove the uncertainty. Finalising the mandate and financial sustainability of the IDT, together with the Minister, is thus a critical deliverable for the Board.Concerned that IDT was only allocated R50m for 2013/14, and the same value for each of the outer years, an amount well below what the IDT needs to remain a going concern, deliver on its mandate and to meet the growing demand for its services

Part A: Strategic OverviewPart A: Strategic Overview

Vision, Mission & ApproachVision, Mission & Approach

VISION

A leading public sector programme management agency

MISSIONThe IDT manages and delivers integrated social infrastructure programmes on behalf of government.

OUR APPROACH The IDT’s approach to social infrastructure development entails all the necessary measures, facilities and networks required to prepare communities to receive, own, manage and sustain their own development

VISION

A leading public sector programme management agency

MISSIONThe IDT manages and delivers integrated social infrastructure programmes on behalf of government.

OUR APPROACH The IDT’s approach to social infrastructure development entails all the necessary measures, facilities and networks required to prepare communities to receive, own, manage and sustain their own development

Values & Operating PrinciplesValues & Operating Principles

VALUES OPERATING PRINCIPLES

PEOPLE CENTERED

We improve the lives of people. We work together as a team. We put people first. We are focused on our stakeholderss.

INTEGRITY We are open and honest in all our communications. We believe in the integrity of our data and reports. We treat one another with dignity and respect. We conduct our business in a lawful, honest and ethical manner.

PROFESSIONALISM

We approach work in a systematic manner. Our service complies with best practice. We deliver quality results.

ACCOUNTABILITY

We have responsibility to communities, stakeholders and one another for our actions.

We are accountable to our clients, stakeholders and one another for our actions

VISIONARY We approach our work in a creative manner. Our solutions are innovative. We have direct impact on communities.

Legislative and other mandates (1)Legislative and other mandates (1)

The 1997 Cabinet mandate is still in place: “The IDT must be transformed into a government development agency that will implement projects which are commissioned by government departments.”Integrated into the public service delivery system in 1999 with the promulgation of the PFMA and listed as a Schedule 2 Major Public EntityReports to Parliament through the Minister of Public Works, the Shareholder Representative and Executive Authority. Thus the IDT seeks to contribute towards the mandate, vision and strategic objectives of Department of Public Works (DPW)The IDT further seeks to advance

National Development PlanNational Infrastructure Plan

The 1997 Cabinet mandate is still in place: “The IDT must be transformed into a government development agency that will implement projects which are commissioned by government departments.”Integrated into the public service delivery system in 1999 with the promulgation of the PFMA and listed as a Schedule 2 Major Public EntityReports to Parliament through the Minister of Public Works, the Shareholder Representative and Executive Authority. Thus the IDT seeks to contribute towards the mandate, vision and strategic objectives of Department of Public Works (DPW)The IDT further seeks to advance

National Development PlanNational Infrastructure Plan

Legislative and other mandates (2)Legislative and other mandates (2)POLICY MANDATES

Shareholder CompactRelevant Programmes of DPW

Programme 1: AdministrationProgramme 3: Expanded Public Works Programme (EPWP)

National Strategic OutcomesOutcome 1: Improved Quality of Basic EducationOutcome 2: A long and healthy life for all South AfricansOutcome 4: Decent employment through inclusive economic growthOutcome 5: A skilled and capable workforce to support an inclusive growth pathOutcome 7: Vibrant, Equitable and Sustainable Rural Communities and Food Security for allOutcome 8: Sustainable human settlements and improved quality of household lifeOutcome 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship

In advancing these outcome areas the IDT directly supports DPW in its Medium-Term Strategic Framework (MTSF) priorities for job creation, sector skills development and the green buildings initiatives.

POLICY MANDATESShareholder CompactRelevant Programmes of DPW

Programme 1: AdministrationProgramme 3: Expanded Public Works Programme (EPWP)

National Strategic OutcomesOutcome 1: Improved Quality of Basic EducationOutcome 2: A long and healthy life for all South AfricansOutcome 4: Decent employment through inclusive economic growthOutcome 5: A skilled and capable workforce to support an inclusive growth pathOutcome 7: Vibrant, Equitable and Sustainable Rural Communities and Food Security for allOutcome 8: Sustainable human settlements and improved quality of household lifeOutcome 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship

In advancing these outcome areas the IDT directly supports DPW in its Medium-Term Strategic Framework (MTSF) priorities for job creation, sector skills development and the green buildings initiatives.

Situational Analysis: Performance EnvironmentSituational Analysis: Performance Environment

Brief reflection on the IDT’s track record over two decades as a national development implementing agency, supporting all spheres of governmentBetween 2006-2011 delivered programmes in excess of R 14.4bn of which between 85-95% was directed at social infrastructure developmentAlso implements programmes directed at community development by integrating social infrastructure outputs with long-term impact and sustainable development goalsIDT uniquely bridges the development gap between national socio-economic policy and funding objectives with the hopes and aspirations of communities

Brief reflection on the IDT’s track record over two decades as a national development implementing agency, supporting all spheres of governmentBetween 2006-2011 delivered programmes in excess of R 14.4bn of which between 85-95% was directed at social infrastructure developmentAlso implements programmes directed at community development by integrating social infrastructure outputs with long-term impact and sustainable development goalsIDT uniquely bridges the development gap between national socio-economic policy and funding objectives with the hopes and aspirations of communities

Situational Analysis: Organisational EnvironmentSituational Analysis: Organisational Environment

OPPORTUNITIES THREATS

Jobs Fund: Opportunity for investing in job re-skilling & community-based economic development to mitigate the impact of the economic recession, retrenchments & high unemployment

Formal market offering limited opportunities for unskilled people. Growing numbers of unemployed graduates and frustrated youth

Advancing the Green Economy and related industries through accessing the Green Fund & optimising IDT’s experience in ‘green’ initiatives

Sustainability debates (e.g., R10+20) raised expectations without binding global compacts & obligations

Investment flows in enterprise development and from CSI portfolios and obligations

Financial constraints limiting IDT’s ability to develop and implement a proactive & bold Resource Mobilisation Plan

Leverage IDTs experience to launch innovative, people-driven & sustainable poverty eradication programmes

Deepening poverty and vulnerability poses a threat to social cohesion as manifested in strikes & unrest due to inadequate and uneven service delivery

Post-settlement support linked to comprehensive sustainable rural community development.

Limited experience in Land and Agrarian Reform in the country and the organisation has limited understanding of/experience in the agricultural and food production value chain.

Substantial Government investment in infrastructure development.

Infrastructure budget skewed towards economic services

Situational Analysis: Key IssuesSituational Analysis: Key Issues

The environmental scan highlighted the following areas as pertinent to the IDT and it thus informed the corporate strategy

Development GapSocial InfrastructureJob Creation & Economic DevelopmentSustainable DevelopmentEradication of poverty and InequalitySocial Cohesion, Community Development & Social CompactsLocal Government & Service DeliveryLand Reform & Social SecurityAid & International DevelopmentKnowledge Management and Capacity Building

The environmental scan highlighted the following areas as pertinent to the IDT and it thus informed the corporate strategy

Development GapSocial InfrastructureJob Creation & Economic DevelopmentSustainable DevelopmentEradication of poverty and InequalitySocial Cohesion, Community Development & Social CompactsLocal Government & Service DeliveryLand Reform & Social SecurityAid & International DevelopmentKnowledge Management and Capacity Building

Situational Analysis: Strategic Planning ProcessSituational Analysis: Strategic Planning Process

Strategic Planning, and performance monitoring and reporting, is an institutionalised business process.It is a iterative annual process

May: The Board is presented with the framework for the strategic planning process for approvalJune: Consolidate researchJuly-August: Develop and present strategy proposals to the Board for approvalJune- July: MTEF SubmissionAugust-October: Develop draft Strategic Plan, Unit Business Plans and Sub-Unit Work PlansAugust-October: MTEF meetings & presentationsNovember-December: Draft Strategic Plan, APP & Budget recommended to the BoardJanuary-February: Finalise, approve and submit Unit Business Plans & Budgets; and the Strategic Plan, APP & corporate Budget

Strategic Planning, and performance monitoring and reporting, is an institutionalised business process.It is a iterative annual process

May: The Board is presented with the framework for the strategic planning process for approvalJune: Consolidate researchJuly-August: Develop and present strategy proposals to the Board for approvalJune- July: MTEF SubmissionAugust-October: Develop draft Strategic Plan, Unit Business Plans and Sub-Unit Work PlansAugust-October: MTEF meetings & presentationsNovember-December: Draft Strategic Plan, APP & Budget recommended to the BoardJanuary-February: Finalise, approve and submit Unit Business Plans & Budgets; and the Strategic Plan, APP & corporate Budget

Part A: StrategyPart A: Strategy

Strategic ChoicesStrategic Choices

Having noted pertinent issues from the situational analysis, the Board decided that the IDT’s 2013/14-2017/18 Corporate Strategy should reflect the following:

PROBLEM STATEMENT: Deepening poverty and inequality; social infrastructure needs; the need for social compact and a long-term financial suitability model for the organisation.IDT’S DIFFERENTIATOR: The IDT’s distinctive, value adding and differentiating offering will be the integration of social infrastructure delivery and social facilitation focussing on poverty eradication, employment creation and inequality. CORE BUSINESS AREAS: Programme management, institutional capacity and community mobilisation. CLARIFICATION OF MANDATE: The IDT’s 1997 Mandate is still in place. The IDT is an agency of state which reports to Parliament through DPW. Given the changes in the policy environment, IDT should/could propose a revised mandate. However, the organisation recognises that the confirmation of its mandate is a Cabinet decision which will also inform the legislative process, scheduling and corporate form of a future IDT.

Having noted pertinent issues from the situational analysis, the Board decided that the IDT’s 2013/14-2017/18 Corporate Strategy should reflect the following:

PROBLEM STATEMENT: Deepening poverty and inequality; social infrastructure needs; the need for social compact and a long-term financial suitability model for the organisation.IDT’S DIFFERENTIATOR: The IDT’s distinctive, value adding and differentiating offering will be the integration of social infrastructure delivery and social facilitation focussing on poverty eradication, employment creation and inequality. CORE BUSINESS AREAS: Programme management, institutional capacity and community mobilisation. CLARIFICATION OF MANDATE: The IDT’s 1997 Mandate is still in place. The IDT is an agency of state which reports to Parliament through DPW. Given the changes in the policy environment, IDT should/could propose a revised mandate. However, the organisation recognises that the confirmation of its mandate is a Cabinet decision which will also inform the legislative process, scheduling and corporate form of a future IDT.

Strategic Goals Strategic Goals

The Strategic Goals articulates the IDT’s responsibility to promote sustainable development in poor and marginalized areas through delivery of integrated social infrastructure. The institution aims to achieve these Strategic Goals by using resources in a prudent and efficient manner.

The Strategic Goals articulates the IDT’s responsibility to promote sustainable development in poor and marginalized areas through delivery of integrated social infrastructure. The institution aims to achieve these Strategic Goals by using resources in a prudent and efficient manner.

PROGRAMME STRATEGIC GOALS/OUTCOMES

STRATEGIC OBJECTIVES

PROGRAMME 1: INTEGRATED SERVICE DELIVERY 

THE IDT ENHANCES THE STATE’S DELIVERY CAPACITY

STRATEGIC OBJECTIVE 1: Deliver quality social infrastructure on time, within budget and scope OBJECTIVE STATEMENT 1: IDT’s distinctive developmental approach to social infrastructure delivery empowers communities to receive, own, manage and sustain their own development

PROGRAMME 2: ADMINISTRATION

THE IDT IS AN EFFECTIVE, EFFICIENT AND SUSTAINABLE ORGANISATION

STRATEGIC OBJECTIVE 2: A compliant, results-based, efficient and focused organisationOBJECTIVE STATEMENT 2: Maintaining a clean administration which is committed to the efficient application of resources, compliance with regulations and legislation and which is accountable.

Strategic Vision Implementation Strategic Vision Implementation

IDT is a major public entity and development agency which has to:

Create value in the lives of the people of South Africa. Ensure that it delivers high quality service and sustainable development in a cost effective way. Remain relevant in the South African development landscape,Find innovative and sustainable solutions to the development challenges facing the country as identified in the National Development Plan and other key policy studies commissioned by government.

The strength of the IDT lies in strategic partnerships. The results of the scan suggest that through the transformed IDT, more effective linkages can be made between government priorities and the IDT’s strategic goals of delivering social infrastructure and other programmes, developing communities, supporting institutions, sharing knowledge and building strategic partnerships

IDT is a major public entity and development agency which has to:

Create value in the lives of the people of South Africa. Ensure that it delivers high quality service and sustainable development in a cost effective way. Remain relevant in the South African development landscape,Find innovative and sustainable solutions to the development challenges facing the country as identified in the National Development Plan and other key policy studies commissioned by government.

The strength of the IDT lies in strategic partnerships. The results of the scan suggest that through the transformed IDT, more effective linkages can be made between government priorities and the IDT’s strategic goals of delivering social infrastructure and other programmes, developing communities, supporting institutions, sharing knowledge and building strategic partnerships

IDT’s Response to the Development GapIDT’s Response to the Development Gap

Shares Knowledge…

• Stakeholder management • Resource mobilization

Mobilise Communities…

• Sustainable livelihoods• Asset based approaches

BuildPartnerships…

Support Institutions…

Delivers Programmes…

• Action research • Learning & innovation

• Policy/planning support• Technical expertise

• Programme planning • Delivery management

What we do

Key

Fo

cus

Are

asC

entr

es o

f E

xcel

len

ce

Head Office• Coordinates adaptive strategy; by facilitating regular best practice sharing and

dissemination of learning• Fosters supportive cooperation between regions; by providing benchmarking, M&E,

Impact Management and Knowledge Management, leading to innovative policy recommendations that ensure consistently improving delivery

• Secures national/international support, resources and cooperation

GP FSEC

WC NWNC

MPU

LIM

KZN

HO

• Strategy: Shift to community development

• Services: Develop communities, support institutions and deliver programmes

• Structure: Decentralised regions set strategy, implement local development, coordinated by HO

“Butterfly”Transformation Scenario

Strategy StructureServices

Generated by Regions and coordinated by centre; responsive to local contexts

Focus on community development for greatest gains in long term impact

Decentralise, with higher proportion of resources in Regions at community level

The IDT’s Transformation Drivers: Why the IDT must change

Systems

Customised to Regions but coordinated at centre; ensures integration while allowing flexibility

Sustainability

Institutional integrity, relevant mandate supported by financially viable business model focussed on sustainable business growth

What will happen in CommunitiesCommunity development must focus on creating sustainable livelihoods, cohesive communities, vibrant markets and active economies in an integrated manner

Building vibrant

communities

Basic/Core Services

Enterprise Development

InfrastructureSupport

Institutional Capacity

Community Development

(Social & Cultural capital)(Economic & Financial capital)

(Human capital e.g. health, education)

(Institutional &Political capital)

(Physical & environmental capital)

A vibrant community is one that is cohesive, empowered and sustainable

The New IDT will reflect an integrated an decentralised structure that matches community structures

Key Performance Measures & Indicators (1)Key Performance Measures & Indicators (1)

Captured in Appendix 2 & 3, the Corporate Business Plan and in the 2013/14 APP. However, the IDT’s delivery of these pre-determined strategic objectives, indicators and targets hinges on a number of assumptions and dependencies:

VALUE AND DELIVERY OF BUSINESS PORTFOLIO: The IDT is required to generate its own business portfolio. However, the speed at which agreements are concluded as well as the frequency and values of funds transferred is not entirely within the control of the organisation and delays impact on delivery. Hence associated indicators and targets assume that agreements are concluded before the start of and or early in the financial year and that clients will transfer funds as stipulated in the agreements.

MANAGEMENT FEE: Is negotiated with clients and stipulated in agreements. In order to remain a going concern, the minimum average management fee which the IDT can consider is 4.0% and any amount lower than 4% will jeopardise the organisation’s going concern status. In addition, if clients do not make the funds available for the IDT to

deliver, the organisation will not be able to collect its management fees.

Captured in Appendix 2 & 3, the Corporate Business Plan and in the 2013/14 APP. However, the IDT’s delivery of these pre-determined strategic objectives, indicators and targets hinges on a number of assumptions and dependencies:

VALUE AND DELIVERY OF BUSINESS PORTFOLIO: The IDT is required to generate its own business portfolio. However, the speed at which agreements are concluded as well as the frequency and values of funds transferred is not entirely within the control of the organisation and delays impact on delivery. Hence associated indicators and targets assume that agreements are concluded before the start of and or early in the financial year and that clients will transfer funds as stipulated in the agreements.

MANAGEMENT FEE: Is negotiated with clients and stipulated in agreements. In order to remain a going concern, the minimum average management fee which the IDT can consider is 4.0% and any amount lower than 4% will jeopardise the organisation’s going concern status. In addition, if clients do not make the funds available for the IDT to

deliver, the organisation will not be able to collect its management fees.

Key Performance Measures & Indicators (2)Key Performance Measures & Indicators (2)

GOING CONCERN: It assumes that the operation will be able to continue trading for a minimum of 12-months. Unforeseen cash flow challenges may jeopardise this assumption. CERTAINTY OF MANDATE AND LONG-TERM SUSTAINABILITY: The Shareholder has undertaken to formally consider and provide certainty on the organisation’s mandate and long-term sustainability. The uncertainty, which had prevailed for a number of years, negatively impacts client confidence, organisational culture and staff morale, which in turn is reflected in business generation, productivity and delivery capacity. While the projected business portfolio indicates growing client confidence, managing this variable remains a challenge.ATTRACT AND RETAIN RIGHT SKILLS: The on-going uncertainly has increased the risk of flight of skills resulting in a high vacancy rate of between 18-20% in 2012/13. It further impacts the organisation’s ability to recruit and retain the right skills. At the same time client confidence is enhanced by the organisation’s ability to deploy appropriate competencies to manage programmes

GOING CONCERN: It assumes that the operation will be able to continue trading for a minimum of 12-months. Unforeseen cash flow challenges may jeopardise this assumption. CERTAINTY OF MANDATE AND LONG-TERM SUSTAINABILITY: The Shareholder has undertaken to formally consider and provide certainty on the organisation’s mandate and long-term sustainability. The uncertainty, which had prevailed for a number of years, negatively impacts client confidence, organisational culture and staff morale, which in turn is reflected in business generation, productivity and delivery capacity. While the projected business portfolio indicates growing client confidence, managing this variable remains a challenge.ATTRACT AND RETAIN RIGHT SKILLS: The on-going uncertainly has increased the risk of flight of skills resulting in a high vacancy rate of between 18-20% in 2012/13. It further impacts the organisation’s ability to recruit and retain the right skills. At the same time client confidence is enhanced by the organisation’s ability to deploy appropriate competencies to manage programmes

Governance StructuresGovernance Structures

SHAREHOLDER COMPACT: Between the Executive Authority and Accounting Authority

BOARD OF TRUSTEES AND ITS COMMITTEES:Strategic Planning and Programmes CommitteeHuman Resources and Corporate Services CommitteeAudit and Risk CommitteeFinance CommitteeRemuneration Committee (Board Exco)

EXECUTIVE MANAGEMENT: Comprising Executive Heads of four Business Units reporting to the Chief Executive Officer (CEO)

Development Programme Services (Renamed Development Services Unit)Corporate ServicesFinancial Management ServicesOffice of the CEO

SHAREHOLDER COMPACT: Between the Executive Authority and Accounting Authority

BOARD OF TRUSTEES AND ITS COMMITTEES:Strategic Planning and Programmes CommitteeHuman Resources and Corporate Services CommitteeAudit and Risk CommitteeFinance CommitteeRemuneration Committee (Board Exco)

EXECUTIVE MANAGEMENT: Comprising Executive Heads of four Business Units reporting to the Chief Executive Officer (CEO)

Development Programme Services (Renamed Development Services Unit)Corporate ServicesFinancial Management ServicesOffice of the CEO

Part C: Links to Other PlansPart C: Links to Other Plans

Financial PlanFinancial Plan

Budget 2013/14 & Forecast for Outer YearsBudget 2013/14 & Forecast for Outer Years

Classification2012/13

BudgetR’000

YTD DEC 2012

ActualR’000

2013/14

BudgetR’000

2014/15

ForecastR’000

2015/16

ForecastR’000

INVESTMENT INCOME

9 000 15 039 5 000 5 000 5 000

MANAGEMENT FEES

242 500 112 756 252 000 535 500 567 000

OTHER INCOME/ GRANT FUNDING

30 000 55 022 50 000 50 000 50 000

TOTAL INCOME

281 500 182 817 307 000 590 500 622 000

TOTAL EXPENDITURE

520 892 253 675 486 697 536 518 571 685

SURPLUS/(DEFICIT)

(239 392) (70 858) (179 697) 53 982 50 315

Budget 2013/14 and Forecast for Outer Years – Analysis of ExpenditureBudget 2013/14 and Forecast for Outer Years – Analysis of Expenditure

Cost Category2012/13

BudgetR’000

YTD DEC 2012

ActualR’000

2013/14

BudgetR’000

2014/15

ForecastR’000

2015/16

ForecastR’000

EMPLOYMENT COSTSTRAVEL EXPENSECONSULTANTSOFFICE RENTALMARKETINGPARTNERSINSURANCE, MAINTENANCE, TRANSFORMATION ETC

249 74425 79022 02013 192

-16 000

194 146

157 83116 69218 578

7 300-

4 600

53 274

270 18328 00015 00015 38710 00010 000

138 127

327 26428 00015 00016 61910 00010 000

129 635

355 11628 00015 00017 94710 00010 000

135 622

TOTAL 520 892 253 675 486 697 536 518 571 685

Income IncomeTHE IDT HAS TWO SOURCES OF INCOME:THE IDT HAS TWO SOURCES OF INCOME:

MANAGEMENT FEES:MANAGEMENT FEES:Management fees charged to client departments constitutes the major source of its income. The level of fees averaged slightly more than 3 % during the 2012/13 financial year and management has implemented a process to increase the average level of fees to 4% over the budget year. The level of fees will be further increased over the outer years.

INVESTMENT INCOME: INVESTMENT INCOME: Earned from the investment fund.

The fund is being depleted to fund the IDT’s operational costs; and,

The reduction in the level of interest rates together with the decrease in the capital invested has resulted in the investment income being reduced significantly over the past few years.

Investment income for 2011/12 was R 27 million and the income for the nine months ended 31 December 2012 was R 15,0 million.

THE IDT HAS TWO SOURCES OF INCOME:THE IDT HAS TWO SOURCES OF INCOME:

MANAGEMENT FEES:MANAGEMENT FEES:Management fees charged to client departments constitutes the major source of its income. The level of fees averaged slightly more than 3 % during the 2012/13 financial year and management has implemented a process to increase the average level of fees to 4% over the budget year. The level of fees will be further increased over the outer years.

INVESTMENT INCOME: INVESTMENT INCOME: Earned from the investment fund.

The fund is being depleted to fund the IDT’s operational costs; and,

The reduction in the level of interest rates together with the decrease in the capital invested has resulted in the investment income being reduced significantly over the past few years.

Investment income for 2011/12 was R 27 million and the income for the nine months ended 31 December 2012 was R 15,0 million.

Investment Fund BalancesInvestment Fund Balances

DETAILS

VALUES AS AT 31/12/2012

R’000

VALUES AS AT 31/03/2013

R’000

BALANCE AT 01/04/2012 277 519 217 358

INVESTMENT INCOME (ESTIMATED)

15 039 2 224

FUNDS ALLOCATED BY TREASURY

50 800 -

WITHDRAWALS TO FUND OPERATIONS (126 000) (50 000)

CLOSING BALANCE 217 358 169 582

Programme Portfolio Expenditure TrendsProgramme Portfolio Expenditure Trends

The value of the programme delivery over the period 2009/10 to 2015/16 is as follows:

The above table reflects the actual and projected growth in the IDT’s delivery capacity and the importance of enabling the organisation to sustain and expand its delivery capacity

The value of the programme delivery over the period 2009/10 to 2015/16 is as follows:

The above table reflects the actual and projected growth in the IDT’s delivery capacity and the importance of enabling the organisation to sustain and expand its delivery capacity

FINANCIAL YEAR VALUE OF PROGRAMME SPEND % INCREASE

2009/10 R 1 635 million ---

2010/11 R 2 251 million 37%

2011/12 R 4 243 million 88%

2012/13 (ESTIMATE) R 5 400 million 27%

2013/14 (BUDGET) R 7 000 million 30%

2014/15 (FORECAST) R 8 500 million 21%

2015/16 (FORECAST) R 9 000 million 6%

Financial Challenges and Risks Financial Challenges and Risks

The greatest challenge facing the IDT is the uncertainty surrounding the financial sustainability of the organisation.

Treasury has allocated R50m per year for the 2013/14 to 2015/16 financial years. The funds have been allocated on condition that “the Independent Development Trust will develop and submit a restructuring plan to the National Treasury by 30 June 2013”.

The Business Case (the plan referred to by Treasury) is being prepared in conjunction with the Department of Public Works. The plan will address, inter alia, the issues of:

The structure, form and resourcing required for the organisation in order for it to become self-sustainable over the MTEF period;

The clearly identified target market for the organisation;

The management fees structure required to provide for the funding of the organisation

The greatest challenge facing the IDT is the uncertainty surrounding the financial sustainability of the organisation.

Treasury has allocated R50m per year for the 2013/14 to 2015/16 financial years. The funds have been allocated on condition that “the Independent Development Trust will develop and submit a restructuring plan to the National Treasury by 30 June 2013”.

The Business Case (the plan referred to by Treasury) is being prepared in conjunction with the Department of Public Works. The plan will address, inter alia, the issues of:

The structure, form and resourcing required for the organisation in order for it to become self-sustainable over the MTEF period;

The clearly identified target market for the organisation;

The management fees structure required to provide for the funding of the organisation

Financial Challenges and Risks Financial Challenges and Risks

It is crucial that the Shareholder address the issue of the financial sustainability of the IDT in order to ensure that it continues to play a meaningful role in the delivery of infrastructure and community development.

The value of programme implementation agency agreements (PIA) or memoranda of agreements (MOA) signed for future implementation is currently in excess of R 20 billion (as reflected in a previous slide). These programmes are to be implemented over the next three years. This would represent a significant risk to the relevant departments and service delivery to communities should the IDT not be able to implement their programmes.

It is crucial that the Shareholder address the issue of the financial sustainability of the IDT in order to ensure that it continues to play a meaningful role in the delivery of infrastructure and community development.

The value of programme implementation agency agreements (PIA) or memoranda of agreements (MOA) signed for future implementation is currently in excess of R 20 billion (as reflected in a previous slide). These programmes are to be implemented over the next three years. This would represent a significant risk to the relevant departments and service delivery to communities should the IDT not be able to implement their programmes.

Links to other PlansLinks to other Plans

RISK MANAGEMENT PLANAudit and Risk Committee (ARC): Overall responsibility to ensure that the organisation has identified the key risks and that a strategy to manage those risks is implemented. Risk Management Committee: Chaired by the CEO and reports to the ARC. Responsible for reviewing the Risk Management StrategyCompliance and Risk Office responsible for constant monitoring and reporting, as well as testing compliance with legislation

FRAUD PREVENTION PLANDue to the nature of the IDT’s business, where volumes and financial value of projects continue to rise, fraud risk is considered to be very critical and as such it is separated from all other risksThe Plan comprises a fraud prevention strategy and policy, which is reviewed annually to incorporate emerging best practice and trend analysis such as profiling, for identifying areas where fraud and corruption are most likely to occur, and effecting appropriate control measuresIDT operates an externally managed hotline for the reporting of fraud and corruption, and also makes use of forensic expertise for the investigation of reported cases when such intervention is required.

RISK MANAGEMENT PLANAudit and Risk Committee (ARC): Overall responsibility to ensure that the organisation has identified the key risks and that a strategy to manage those risks is implemented. Risk Management Committee: Chaired by the CEO and reports to the ARC. Responsible for reviewing the Risk Management StrategyCompliance and Risk Office responsible for constant monitoring and reporting, as well as testing compliance with legislation

FRAUD PREVENTION PLANDue to the nature of the IDT’s business, where volumes and financial value of projects continue to rise, fraud risk is considered to be very critical and as such it is separated from all other risksThe Plan comprises a fraud prevention strategy and policy, which is reviewed annually to incorporate emerging best practice and trend analysis such as profiling, for identifying areas where fraud and corruption are most likely to occur, and effecting appropriate control measuresIDT operates an externally managed hotline for the reporting of fraud and corruption, and also makes use of forensic expertise for the investigation of reported cases when such intervention is required.

Links to other PlansLinks to other Plans

MATERIALITY AND SIGNIFICANCE FRAMEWORKFor purposes of material [sections 50(1), 55(2) and 66(1) of the PFMA] and significant [section 54(2) of the Act], the Accounting Authority must develop and agree a framework of acceptable levels of materiality and significance with the relevant Executive Authority in consultation with the Auditor General.After consultation with the AG, the Materiality and Significance Framework was approved to the Accounting Authority and presented to the Executive AuthorityMateriality and Significance Framework Slides.pptx

HUMAN RESOURCES PLANAims to facilitate effective resourcing of the organisation through efficient people planning, people management and people development strategies; and, to ensure that the IDT can at all times attract, retain and develop the best available skills such that it is able to deliver on its mandate. The approved staff establishment for 2013/2014 is 440. In terms of the HR Plan a full occupancy rate is expected for the year. However, due to the financial constraints, this target will have to be scaled down

MATERIALITY AND SIGNIFICANCE FRAMEWORKFor purposes of material [sections 50(1), 55(2) and 66(1) of the PFMA] and significant [section 54(2) of the Act], the Accounting Authority must develop and agree a framework of acceptable levels of materiality and significance with the relevant Executive Authority in consultation with the Auditor General.After consultation with the AG, the Materiality and Significance Framework was approved to the Accounting Authority and presented to the Executive AuthorityMateriality and Significance Framework Slides.pptx

HUMAN RESOURCES PLANAims to facilitate effective resourcing of the organisation through efficient people planning, people management and people development strategies; and, to ensure that the IDT can at all times attract, retain and develop the best available skills such that it is able to deliver on its mandate. The approved staff establishment for 2013/2014 is 440. In terms of the HR Plan a full occupancy rate is expected for the year. However, due to the financial constraints, this target will have to be scaled down

Links to other PlansLinks to other Plans

ENVIRONMENTAL PLANEnvironmental management is a cross-cutting issue, with internal and external focus Internal perspective: Concerned with the extent to which the organisation behaves in an environmentally friendly manner, e.g. light bulbs used, sorting of waste, paper recycling and energy savings, etc. External perspective: Concerned with the extent to which programme management and project implementation are environmentally friendly. Includes building processes, practices and materials used in the construction as well as promoting environmental awareness in the communities we operate in.

COMMUNICATIONS PLANTo ensure constant and consistent messaging and engagement with the IDT stakeholders and staff Aims to integrate all branding and marketing related functions such as Stakeholder Engagement, Client Relations, Public Relations, and Corporate Communications in support of the overall sustainability of the IDT.

ENVIRONMENTAL PLANEnvironmental management is a cross-cutting issue, with internal and external focus Internal perspective: Concerned with the extent to which the organisation behaves in an environmentally friendly manner, e.g. light bulbs used, sorting of waste, paper recycling and energy savings, etc. External perspective: Concerned with the extent to which programme management and project implementation are environmentally friendly. Includes building processes, practices and materials used in the construction as well as promoting environmental awareness in the communities we operate in.

COMMUNICATIONS PLANTo ensure constant and consistent messaging and engagement with the IDT stakeholders and staff Aims to integrate all branding and marketing related functions such as Stakeholder Engagement, Client Relations, Public Relations, and Corporate Communications in support of the overall sustainability of the IDT.

Links to other PlansLinks to other Plans

IT MANAGEMENT PLANIT Plan will focus on migrating the IDT to Cloud computing which will create a more secure, reliable, portable and scalable IT architecture.

The objectives of the ITM Framework are as follows:Provide the IDT with an adequate IM& T Platform;Increase the efficiency, seamlessness and integration of internal processes (e.g., HR; Finance; Performance Information Management; Knowledge management; and, monitoring and evaluation);Provide an effective, efficient and reliable internal and external electronic communications, through the use of the IDT’s network infrastructure;Provide support to address all client needs to ensure client satisfaction.

KNOWLEDGE MANAGEMENT PLANCorporate Knowledge Management Strategy (CKS): Promote knowledge-driven development practice and innovation; maximize the impact of development interventions in support of the national strategic priorities and the realization of the organisation’s corporate goals. Through the CKS, the IDT is building systems to promote a vibrant culture of documenting, sharing, learning and mainstreaming of knowledge-driven development practice and innovation to support operations.

IT MANAGEMENT PLANIT Plan will focus on migrating the IDT to Cloud computing which will create a more secure, reliable, portable and scalable IT architecture.

The objectives of the ITM Framework are as follows:Provide the IDT with an adequate IM& T Platform;Increase the efficiency, seamlessness and integration of internal processes (e.g., HR; Finance; Performance Information Management; Knowledge management; and, monitoring and evaluation);Provide an effective, efficient and reliable internal and external electronic communications, through the use of the IDT’s network infrastructure;Provide support to address all client needs to ensure client satisfaction.

KNOWLEDGE MANAGEMENT PLANCorporate Knowledge Management Strategy (CKS): Promote knowledge-driven development practice and innovation; maximize the impact of development interventions in support of the national strategic priorities and the realization of the organisation’s corporate goals. Through the CKS, the IDT is building systems to promote a vibrant culture of documenting, sharing, learning and mainstreaming of knowledge-driven development practice and innovation to support operations.

AppendicesAppendices

AppendicesAppendices

BUDGET FRAMEWORK: ..\..\CEO OFFICE\EXEC HEAD CEO\2013\PARLIAMENT\2014-18 STRATEGIC PLAN

2013/14-17/18 CORPORATE BUSINESS PLAN: ..\..\CEO OFFICE\EXEC HEAD CEO\2013\PARLIAMENT\2014-18 STRATEGIC PLAN\APPENDIX 2 CORPORATE BUSINESS PLAN.PDF

2013/14 ANNUAL PERFORMANCE PLAN: ..\..\CEO OFFICE\EXEC HEAD CEO\2013\PARLIAMENT\2014-18 STRATEGIC PLAN\APPENDIX 3 2013-14 APP.PDF

SHAREHOLDER COMPACT

BUDGET FRAMEWORK: ..\..\CEO OFFICE\EXEC HEAD CEO\2013\PARLIAMENT\2014-18 STRATEGIC PLAN

2013/14-17/18 CORPORATE BUSINESS PLAN: ..\..\CEO OFFICE\EXEC HEAD CEO\2013\PARLIAMENT\2014-18 STRATEGIC PLAN\APPENDIX 2 CORPORATE BUSINESS PLAN.PDF

2013/14 ANNUAL PERFORMANCE PLAN: ..\..\CEO OFFICE\EXEC HEAD CEO\2013\PARLIAMENT\2014-18 STRATEGIC PLAN\APPENDIX 3 2013-14 APP.PDF

SHAREHOLDER COMPACT

Appendix 5: High Level OrganogramAppendix 5: High Level Organogram

CHIEF EXECUTIVE OFFICER

COMPANY SECRETARY

HEAD OF INTERNAL AUDIT

EXECUTIVE HEAD: OFFICE OF THE CEO

CHIEF OPERATIONS OFFICER

EXECUTIVE HEAD: CSU

CHIEF FINANCIAL OFFICER

EXECUTIVE HEAD: DEVELOPMENT SERVICES UNIT

EXECUTIVE: REGIONAL

OPERATIONS

REGIONAL HEADS X 9

GM: PROGRAMME MANAGEMENT OFFICE

GM: LEARNING AND INNOVATION

ASSISTANT CHIEF FINANCIAL OFFICER

GM: SUPPLY CHAIN MANAGEMENT

GM: HUMAN RESOURCES

GM: STRATEGY AND POLICY

GM: INFORMATION MANAGEMENT

GM: STAKEHOLDER MANAGEMENT

GM: COMPLIANCE AND RISK

RecommendationsRecommendations

RecommendationsRecommendations

That the Portfolio Committee on Public Works

Recommends the IDT’s 2013/14-2017/18 Strategic Plan to Parliament

Sustains its support for the long-term sustainability of the IDT such that the organisation can maintain and accelerate its distinctive role in delivering social infrastructure in the most marginalised communities on behalf of government

That the Portfolio Committee on Public Works

Recommends the IDT’s 2013/14-2017/18 Strategic Plan to Parliament

Sustains its support for the long-term sustainability of the IDT such that the organisation can maintain and accelerate its distinctive role in delivering social infrastructure in the most marginalised communities on behalf of government