Independent%20Development%20Trust%20(idt)%202006/07%20Annual%20Report%20Presentation%20to%20%20Portfolio%20Committee%20for%20Public%20Works%2024%20October%202007

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Independent Development Trust(idt) 2006/07
Annual ReportPresentation to Portfolio
Committee for Public Works24 October 2007
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Purpose of the Presentation

• To present the IDTs 2006/7 Annual Report to the
  Portfolio Committee in terms of the Committees
  oversight function and to enable the Committee
  to prepare and table its Oversight Report on the
  performance of the IDT

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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 AGs Audit report
• 30-Aug-07 Lodge Annual Report with Executive
  Authority
• 29-Sep-06 Annual Report tabled in Parliament

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Opening Statements (Page 9-13)

• Vision, Mission Core Business
• Executive Authority
• Relationship with the IDT
• Recognise the organisations 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
• Boards 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

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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

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Performance Report CEO's Report Page
31-33Corporate Performance Matrix Page
34-37Performance against each Strategic
Objective Page 39-51
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Performance Report (Page 32-52)

• CEOs 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

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Strategic Objective 1
Long Term Strategic Goal To provide innovative development solutions to advance poverty eradication
Long Term Strategic Objective 1 Impact on absolute poverty through innovative and best practice models in the provision of comprehensive development programmes
Long Term Outcome Reduction in poverty and unemployment in areas where the IDT operates
Short Term Goal (1 Yr Target) Deliver comprehensive infrastructure and other development programmes in a way that improves the quality of lives of target groups
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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

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Strategic Objective 2
Long Term Strategic Goal Strengthen the developmental state through deepening democracy in targeted localities
Long Term Strategic Objective 1 To promote people centred development
Long Term Outcome Empowered citizens in areas where the IDT operates
Short Term Goal (1 Yr Target) Design and implement diverse strategies to strengthen people centred development targeting 10 of Project Consolidate Municipalities in KZN, WC and LP
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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

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Strategic Objective 3
Long Term Strategic Goal To contribute to African development solutions
Long Term Strategic Objective 1 Position the IDT as a best practice and development agency capable of serving national and Regional development agendas.
Long Term Outcome Promote NEPAD objectives
Short Term Goal (1 Yr Target) Design a strategy for participation in the NEPAD programme
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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

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Strategic Objective 4
Long Term Strategic Goal To gear the organisations resources towards excellence in delivery
Long Term Strategic Objective 1 To institutionalize and sustain effective and efficient internal business processes
Long Term Outcome The IDT is an effective, efficient and accountable public entity
Short Term Goal (1 Yr Target) The organisation sustains and delivers an unqualified financial and non- financial audit report
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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

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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

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Annual Financial StatementsPage 62-95
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Auditor Generals 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

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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.

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Concluding Comments
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Challenges Opportunities

• Express our appreciation for the Committees
  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.

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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

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Thank youThembi Nwedamutswu Chief Executive
Officerthembin_at_idt.org.za
www.idt.org.za