Presentation to the Select Committee on Social Services

National Council of Provinces

16 August 2011

Presented by: Vuyelwa Nhlapo

Chief Executive Officer

National Development Agency

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PRESENTATION OVERVIEW

1. Introduction2. NDA Mandate3. Vision, Mission and Values4. NDA strategic Goal and Purpose5. High level Budget6. NDA Project Cycle 7. NDA Active Projects per Province8. Project Commitments 2010/119. Provincial Grant Allocation 2011/1210. Current Challenges & Intervention Plan11. Conclusion

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INTRODUCTION

The Strategic Plan has been informed primarily by the legislativeNDA mandate as set out in the National Development Agency Act

108 of 1998, Millennium Development Goals (MDGs), the five Government Priorities, 12 Government Outcomes,

Government-wide Programme of Action (PoA), Provincial Growth and

Development Programmes and Local Economic DevelopmentProgramme (LEDP). The Strategic Plan accordingly follows the NDA

legislative mandate as set out in Section 3 (1) of the Act:

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NDA MANDATE

PRIMARY MANDATE

1. To contribute towards the eradication of poverty and its causes by granting funds to civil society organizations for the purposes of:

a) carrying out projects or programmes aimed at meeting development needs of poor communities; and

b) strengthening the institutional capacity of other civil society organizations involved in direct service provision to poor communities

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NDA MANDATE…Conti

SECONDARY MANDATE2. To promote:

a) consultation, dialogue and sharing of development experience between civil society organizations and relevant organs of the state;

b) debate on development policy; and

c) undertake research and publications aimed at providing the basis for development policy.

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VISION, MISSION, VALUES

VISION A society free from poverty. MISSION Facilitate sustainable development by strengthening civil society organisations involved in poverty eradication through development-oriented research, advocacyand grant funding.

VALUES• Integrity• Dignity• Empowerment• Accountability & Responsibility• Transparency• Excellence• Partnering 6

2011/16 NDA STRATEGIC GOAL & PURPOSE

STRATEGIC GOAL : To leverage strategic partnerships to eradicate poverty to enable poor communities to achieve sustainable livelihoods

PURPOSE: To improve the quality of life of the poor to foster self reliance

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STRATEGIC OBECTIVES

• Strategic objective 1: To build and enhance the capacity of CSOs to enable

them to carry out development work effectively

• Strategic objective 2: To grant funds, facilitate and manage poverty

eradication programmes

• Strategic objective 3: To influence policies, practices and strategies through

comprehensive research and knowledge management

• Strategic objective 4: To mobilise and leverage resources

• Strategic objective 5: To position the NDA as a premier development agency

• Strategic objective 6: To promote and maintain organisational excellence and

sustainability8

THEMATIC FOCUS AREAS IN GRANT MAKING

Strengthening civil society organisations

Early childhood development

Rural development

Food security

Economic development

Cross-cutting issues:

Youth development;

Women empowerment;

HIV/AIDS;

People with disabilities

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SUMMARISED HIGH LEVEL BUDGET

BUDGET SUMMARY FOR FIVE YEAR PERIOD 2012-2016

TOTAL AVAILABLE INCOME 174 860 000 182 813 000 193 527 000 206 238 620 219 592 937

Transfer payment from Government (DSD) 161 360 000 169 263 000 178 527 000 189 238 620 200 592 937Interest earned on Bank Balances 13 500 000 13 550 000 15 000 000 17 000 000 19 000 000

TOTAL EXPENDITURE 174 860 000 182 813 000 193 527 000 206 238 620 219 592 937

MANDATE COSTS 94 746 167 101 545 161 110 361 470 119 446 339 127 395 803

Direct Project Funding 86 847 370 90 617 469 98 126 585 105 435 210 112 625 362 Direct Project Costs 5 475 112 5 807 692 6 281 085 7 553 487 7 942 231 Dialogues,Studies and research 2 423 685 5 120 000 5 953 800 6 457 642 6 828 210

ADMINISTRATION , GOVERNANCE AND STAFF COSTS 80 113 833 81 267 839 83 165 530 86 792 281 92 197 134

Goods and Services 25 123 075 25 552 713 24 498 969 26 358 531 28 360 329 Employment Costs 53 887 572 55 715 126 58 666 561 60 433 750 63 836 805 Rellocation of Head Office (Once off 1 103 186 - - - -

TOTAL DEFICIT/(SURPLUS) - - - - 0

YEAR THREE BUDGET

2013/2014

YEAR FOUR BUDGET

2014/2015

YEAR FIVE BUDGET

2015/2016

BASE YEAR BUDGET

2011/2012

YEAR TWO BUDGET

2012/2013

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2011/12 BUDGET PER STRATEGIC OBJECTIVE

1.

PROGRAM-MING

22.TARGETED

ADVERTISEMENT&

PRE -ASSESSMENT

3.PROJECT

FORMULATION &

APPRAISAL

4.

PROJECTAPPROVAL

TIMELINE

PROJECT IDENTIFICATION & FORMULATION

PROJECT APPRAISAL &APPROVAL

5.GRANT

DISBURSE-MENT

Identification and prioritization of poverty pockets. Prioritization of budget acording to poverty pockerts

Target advertising to NGO/CSOs in poverty pockets for pro-active funding in key focus areas. Pre-assessment of suitable projects from reactive pipeline and response to adver- tisement Sort projects Prioritize

Identify projects in target areas Cluster projects Programatize

Formulate project proposal **)

Assessment according to policies and guidelines Selection of most suitable projects

Justify selected projects on basis of base-line information Information on all other interventions in the project area Elaborate presentation for Board Approval by Board with possible pre- conditions

Notificación of project Elaboration of contractLaunch financial commitment procedure once all pre-conditions have been met Signature of contract with perfor- mance indicators Generate requisition Transfer funds.

Monitoring & Evaluation + Impact Assessment

(**) ASSIST BENEFICIARIES

5.GRANT

DISBURSE-MENT FIRST

TRANCHE

6.

MONITORING

7.GRANT

DISBURSE-MENT

SECONDTRANCHE

11.

IMPACT ASSESSMENT

TIMELINE

Project Implementation Project Result

10.

PROJECTCLOSURE

Deposit funds EFT Inform project of deposit Initiate project activities

Programme related monitoring of indicators. Quarterly Financial Reports Project related monitoring of indicators.

On verifica- tion of proper use of first tranche, site- visit second tranche transferred. Generate requisition Deposit funds /sign a cheque

Programme related monito- ring of indicators. Quarterly Financial Reports Project related monitoring of indicators.

Programming, Identification, Formulation, Appraisal + Approval

8.

MONITORING

Verification of change in poverty situation against census and base line studies Verification of project impact on project purpose and objective Verification of generated dynamics

Audit of project accounts and expenditures Repayment of unused funds Repayment of grant in case of mis- appropriation of funds

9.

EVALUATION

Verification of achieved results through selec- ted indicators. Verification of proper management of projectVerification of community participation throughout implementation.

Project Evaluation

5.GRANT

DISBURSE-MENT FIRST

TRANCHE

6.

MONITORING

7.GRANT

DISBURSE-MENT

SECONDTRANCHE

11.

IMPACT ASSESSMENT

TIMELINE

PROJECT IMPLEMENTATION PROJECT RESULT

10.

PROJECTCLOSURE

Site visit by Project Manager Verification of expenditure of 60% of first tranche

Site visit by Project Manager Verification of expenditure of 100% of Grant.

Programming, Identification, Formulation, Appraisal + Approval

8.

MONITORING

Development of Best Practice

Final narrative & financial report Signature of Closure Act.

9.

EVALUATION

Cost Benefit Analysis Verification of sustainability of the project results at the end of project.

PROJECT EVALUATION

CRITERIA FOR GRANT MAKING

The NDA supports programmes and projects that demonstrate an integrated, holistic, comprehensive and sustainable approach to poverty eradication based on the following criteria:-

• Effectiveness: the extent to which a project may achieve its stated objectives and other socially desirable outcomes

• Poverty Impact: the potential demonstrable effect of the project in improving the quality of life of poorer communities and individuals

• Sustainability: the viability and sound functioning of the project within the constraints it faces such as funding, staffing and others

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CRITERIA FOR GRANT MAKING (continued)

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Replicability: the potential value of the project in informing new ideas and good practices or poverty eradication programme

Partnership: substantial public sector involvement and partnerships with Non-Governmental Organisations (NGOs), Civil Society Organisations (CBOs) and government departments at national, provincial and local level

Model of best practice: the extent to which a methodology is tried and tested to deliver results in the best possible way

METHODS OF GRANT MAKING

Request for Proposals (RFP)

• The RFP is a competitive grant funding approach that targets well established CBOs, NGOs and Co-operatives in organised communities

• CSOs submit proposals based on pre-set criteria and processes

• Proposals are submitted by provincial offices, approved by management and reviewed by the Technical Review Committee

• Proposals are then submitted to the Projects and Programmes Screening Committee of the Board and finally to the Board for approval

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METHODS OF GRANT MAKING (Continued)

Programme Formulation

• NDA engages less organised communities in social facilitation with the view of creating grassroots structures that will ultimately be the mechanism for implementation of programmes and projects

• The approach targets specific areas and sectors based on primary research on priority poverty pockets

• The process is driven by the NDA staff in provinces based on the assessment of the institutional capability and competencies of CBOs and NGOs in identified localities

• The NDA Development Managers assume an active role in the conceptualization and planning of projects

• The approach focuses on less established organisations in identified localities 18

NDA ACTIVE PROJECTS PER PROVINCE

Province

No. Of Projects Amounts Approved

Balance to projects

Eastern Cape 24 R 29 987 980.59 R 6 215 067.58

Free State 26 R 22 706 974.82 R 4 157 314.26

Gauteng 31 R 38 536 682.74 R 11 606 576.66

Kwa-Zulu Natal 44 R 64 926 801.78 R 19 077 448.60

Limpopo 24 R 30 347 200.88 R 6 236 670.88

Mpumalanga 32 R 31 072 237.42 R 6 890 886.29

Northern Cape 11 R 8 862 256.84 R 1 197 205.68

North West 32 R 31 953 565.31 R 6 282 557.82

Western Cape 31 R 41 405 074.77 R 13 634 302.26

TOTAL 255 R 299 798 775.15 R 76 648 498.0319

PROJECT COMMITMENTS 2010/11

ProvinceNo. Of Projects Amounts

Approved

Eastern Cape 7 R 6 623 280.00

Free State 6 R 4 478 890.00

Gauteng 6 R 5 392 481.00

Kwa-Zulu Natal 5 R 7 702 441.00

Limpopo 3 R 5 486 511.00

Mpumalanga 3 R 3 289 256.00

Northern Cape 3 R 1 804 800.00

North West 6 R 3 206 309.00

Western Cape 4 R 4 970.042.00

TOTAL 43 R 42 954 009.0020

PROVINCIAL GRANT ALLOCATION 2011/12

Province Population

Index Base Grant Provincial

AllocationTotal Grant

Allocation

Eastern Cape 20.80% 3 000 000 10 641 828 13 641 828

Free State 7.10% 3 000 000 3 632 547 6 632 547

Gauteng 10.50% 3 000 000 5 372 077 8 372 077

Kwa-Zulu Natal 22.60% 3 000 000 11 562 755 14 562 755

Limpopo 15.50% 3 000 000 7 930 208 10 930 208

Mpumalanga 7.90% 3 000 000 4 041 848 7 041 848

Northern Cape 1.80% 3 000 000 920 927 3 920 927

North West 9.20% 3 000 000 4 706 962 7 706 962

Western Cape 4.50% 3 000 000 2 302 319 5 302 319

TOTALS 99.90% 27 000 000 51 111 471 78 111 47121

CURRENT CHALLENGES & INTERVENTION

PLAN

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CURRENT CHALLENGES & INTERVENTION STRATEGY

Challenges Intervention Plan

Limited financial resources Resource Mobilisation

Inadequate skills and competencies of NDA staff to provide effective support to funded projects

• Ongoing skills training on financial management and alternative dispute resolution• Training and institutionalisation of results-based monitoring and evaluation framework• Strengthening recruitment and selection process for newly appointed staff• Deploying skills in right positions

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CURRENT CHALLENGES & INTERVENTION STRATEGY -- conti

Challenges Intervention Plan

Limited management, institutional and technical capacity of funded projects

• Periodic capacity assessment of all funded projects• Targeted skills enhancement programme for funded projects (Financial management, governance, conflict resolution)• Institutional linkages with expert organisations for skills transfer, coaching and mentorship (ARC, Producers Associations) • Fostering closer relationships with local government, particularly LED desks for ongoing support, oversight and reporting• Financial and non-financial support to CSO national and sectoral networks to provide capacity support to their members

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CURRENT CHALLENGES & INTERVENTION STRATEGY -- conti

Challenges Intervention Plan

Inadequate performance monitoring and evaluation of funded projects

• Rigorous implementation and enforcement of annual monitoring plan• Increased resource allocation for project monitoring• Increased frequency of monitoring visits• Dedicated support to funded projects to improve implementation and reporting• Establishing a network of professional volunteers to provide specialist support to NDA funded projects• Evaluation and impact assessment of all funded projects (mid and end-term)

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CONCLUSION

In cognisance of the challenges and risks identified within the

environment we operate in, we pride ourselves to be on a continuous

drive to contribute towards the eradication of poverty and thus

unlocking the potential of our targeted stakeholders.

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Thank You

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