Purpose of the Presentation

Independent Development Trust(idt)2006/07 Annual ReportPresentation toPortfolio Committee for Public Works24 October 2007

Purpose of the Presentation To present the IDT’s 2006/7 Annual Report to the Portfolio Committee in terms of the Committee’s oversight function and to enable the Committee to prepare and table its Oversight Report on the performance of the IDT

Compliance Declaration • 1-month before start of financial year: 2006/08 Corporate Plan lodged with Executive Authority • 21 days after the end of each quarter: Quarterly Performance Reports (changed to 31 days w.e.f 2006/07) • 31-May-07: Trustee report and draft financial Statements presented to Auditor General (AG) • 31-Jul-07: Received AG’s Audit report • 30-Aug-07: Lodge Annual Report with Executive Authority • 29-Sep-06: Annual Report tabled in Parliament

Opening Statements (Page 9-13) • Vision, Mission & Core Business • Executive Authority: • Relationship with the IDT • Recognise the organisation’s performance (PIA programmes, ASGISA; Mud Schools initiative and Anti-Poverty strategy) • Commend 5th successive audit report • Acting Chairperson: • Reflect on Changes, e.g., new Executive Authority • Board’s extended term of Office: build on momentum & consolidate • Long-term sustainability: Business Case on a Sustainability Model • Trustees pride in serving the nation through the IDT and the performance of the organisation

Trustees Report (Page 17-27) • Compliance • Mandate • Corporate Governance • Executive Authority • Reporting to Parliament • Functioning of Board & Committees • Financial Management and Resources • Risk Management • Trustees attendance • Trustees and Executive remuneration

Performance Report:CEO'sReport: Page 31-33Corporate Performance Matrix: Page 34-37Performance against each Strategic Objective: Page 39-51

Performance Report (Page 32-52) • CEO’s Report (page 32-33) • Reflect on statement of intent when assuming Office over 1000-days ago, and 2006/07 being a turning point for the organisation • Key achievements: e.g., R 1 bn programme expenditure with associated development outcomes; Kitimang project; ASGISA achievements; partnerships with civil society • Chile-Tunisia study tour and the impact thereof • DFI Review process • Performance Summary against government developed policy objectives (page 34-37): Informative summary

Strategic Objective 1

Performance: Strategic objective 1 • R1.07 billion Programme Expenditure with outcome indicators such as • 770 classrooms = access to 30, 800 learners • 75 health facilities= benefiting 740, 00 persons etc • Transformation of programme management environment • Improved programme payment systems reducing turnaround from between 30-90 days to 4-16 days • Customised monitoring tool for all programmes • Finalised Beneficiary Information Management System • 52% of infrastructure programme spend invested locally • Positioning the organisation

Performance: Strategic Objective 2 • Local Areas Plans, IDT designed methodology, delivered beyond target. LAPs adopted by municipalities • ASGISA: (J4G, Skills Acquisition and Placement Programme) • Conceptualise and design delivery mechanisms • Trained people from 208 CBOs • Facilitated 681 international placements • Conceptualised other delivery models • Empowerment Model of Capacity Building • Social Facilitation Framework • Business Case for Mud Schools Programme • Consolidate Civil Society partnerships: SAWID; SAWiC

Performance: Strategic Objective 3 • Unable to develop a strategy for engaging with NEPAD • Had to engage with NEPAD through government • Government did not have any integrated and structured processes for development sector engagements on the Continent. It is ad hoc. • No NEPAD country strategy & no dedicated country desk the organisation could interact with. • On the advice of the Minister, abandoned this objective • Instead the organisation engaged differently with the Continent: • Media tracking to remain on top of developments • SAWID: study tour to Tunisia and supported and participated in a week-long Dialogue with Tunisian women • However recently the organisation has been invited by DSD to support their Post-Conflict Reconstruction strategy in DRC

Performance: Strategic Objective 4 • 2008/10 Corporate strategy: reinterpretation of mandate; more focused and precise. Supported by Minister • Strengthened policy environment: 13 policies approved • Systems transformation: Kitimang • HR: 100% Executive posts filled; strong at occupancy rate in regional offices, but high staff turnover. Targeted HRD project to enhance management capacity • Outcome based reporting and monitoring tools • Address root cause of queries & matters of emphasis raised in 2005/06 Audit Report. 2006/07 Audit Report expressed an unqualified opinion without any matters of emphasis • Spent 97% of Operational Budget • Effectively influenced and managed the DFI review

Structure and Business Practice (page 53-61) • Structure: • Operational model combines centralised systems, process, policies and functions with decentralised operations, which informs the structure • Innovations, operations and challenges of the four (4) Business Units: • Development Programmes Services • Corporate Services • Financial Services • Office of the CEO • Human Resources Management report (Appendix 1): Page 97-103

Annual Financial StatementsPage 62-95

Auditor General’s Report (Page 68-70) • “In my opinion, the financial statements present fairly, in all material aspects, the financial position of the IDT as at 31 March 2007 and its financial performance and cash flows for the year ended, in accordance with the Statement of Generally Accepted Accounting Practice and in a manner required by the PFMA” • Unqualified audit opinion • No matter of emphasis • Performance information: “outputs and outcomes were not specific at corporate level and did not specify target to be achieved.” We differ from this view because the Shareholder advised, at the time, that the org was expected to declare high-level targets that are in line with governments policy objectives. Hence operational targets were set at Unit level. • Process was very robust and we have analysed and delivered a plan of action to address the root cause of queries. • In terms of performance information adopted the Balance Scorecard provides for both output and long-term outcome targets

Material losses and contingent liabilities No material losses as a result of criminal conduct during the year Contingent liabilities: several legal actions are reported in matters where the IDT is a defendant. Based on legal advice these actions can be successfully defended Given the multiple operational agreements and the volume of transactions the organisation enters into to deliver its core business, legal disputes are inevitable. The organisation has processes in place to mitigate and manage these eventualities.

Concluding Comments

Challenges & Opportunities • Express our appreciation for the Committee’s interest in the Long-term financial sustainability of the IDT & for supporting the DFI Review • All of our Executives posts and + 80% of our Senior management posts are filled: geared for more effective delivery and greater impact in the current year. • Concluded a critical skills profile and finalising revisions to our Remuneration Policy in order to retain scarce skills for our operations. • Although the progress is slow, we are participating in the conceptual work around the Anti-Poverty Strategy, which we expect will signal a fundamental shift in the approach to poverty eradication • Mud Schools: DPW R2 bn bid to Treasury to fund programme- favourably received. Unsure how the funds will be allocated.

Proposals • Committee indicate what other information is required to be comfortable with presenting Report to Parliament. • Invite the Committee to attend the public accounting (launch) of our 2006/07 Annual Report at Hlabisa on 8th November

Thank youThembi NwedamutswuChief Executive Officerthembin@idt.org.za www.idt.org.za

Purpose of the Presentation