independent development trust (idt) presentation to portfolio committee for public works 19...
DESCRIPTION
Purpose of the Presentation To present the IDT’s 2004/5 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 IDTTRANSCRIPT
Independent Development Trust
(idt) Presentation to
Portfolio Committee for Public Works19 October 2005
Introductory remarks
Purpose of the PresentationTo present the IDT’s
2004/5 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
Legislative Context • Constitution ,
– Section 55(2): Outlines the oversight powers of the National Assembly i.r.o the performance of departments and public entities
– Section 92(3) (b): “Members of Cabinet must provide Parliament with full and regular reports concerning matters under their control.”
• Annual Reports = regular reports & allow Parliament to evaluate the performance of departments & entities at the end of the financial year
IDT’s approach • Welcome opportunity to account to Portfolio
Committee as the elected public representatives
• Honourable Members “Eyes and ears” of constituencies = all communities in the country & in terms of monitoring impact and new identifying areas of need
• 2004/5: Strategic shift- from development output to development outcomes/ impact
• We cannot be the advocates of impact: 3rd party/ beneficiary verification.
• Honourable members: key of 3rd party voice- advice & guidance
Compliance Report
PFMA requirements • 1-month before start of 2004/5
financial year: 2005/o7 Corporate Plan lodged with Executive Authority
• 21 days after the end of each quarter: Quarterly Performance Reports
• 31-May-05: Trustee report and financial Statements presented to Auditor General (AG)
• 31-Jul-05: Received AG’s Audit report• 30-Aug-05: Lodge Annual Report with
Executive Authority• 30-Sep-05: Annual Report tabled in
Parliament
Board Committees• Audit, Risk and Compliance Committee:
– duly constituted and functioning– Membership: Trustees, 2 External
experts and the Office of the Auditor-General
– Meets at least 4 times per year• Finance Committee• Strategic Planning and Programmes
Committee: Service delivery and other non-financial performance monitoring
• Human Resources Committee• Remuneration Committee
Internal reporting and monitoring System
• Institutionalized– Quarterly Unit Reports: Exco, Board
Committees – Quarterly Corporate Performance
reports: Board of Trustees– Mid-Year Review: End of September
each year– Year End Review: April each year– Performance Management System: 3-
tier and 360 degrees
What is the IDT?
What does the IDT do?
Governance• The IDT is
– Trust– Development management agency – established in 1990.
• Public Finance Management Act: Schedule 2 Public Entity
• Accounting Authority: Board of Trustees
• Executive Authority: Minister of Public Works
Overview• Over the 15 years of its existence, the
IDT’s role in the development sector has shifted from that of a
– grant making agency
– programme implementation agency
– development planning & implementation
– development integration and coordination
IDT’s interpretation of the mandate:
In response to the challenge of delivering against its mandate, the IDT has:
adopted a set of strategic objectives
IDT’s response to the mandate:
Directed its resources to impact on poverty reduction, job creation and local economic development
strive to apply its resources in an effective, efficient, equitable and ethical manner
To support all spheres of Government in managing the implementation of its development programme
The IDT with strategic partners, will enable poor communities to access resources, and to recognise and unlock their own potential to continuously
improve the quality of their lives.Mandate:
Mission StatementThe IDT with strategic partners, will enable poor communities to access resources, and to recognise and unlock their own potential to continuously improve the quality of their lives.
•We shall achieve this through• The quality of our human capital• Delivering a distinctive development product
and service• An organisational culture which is geared to
learning and growth• The quality of our leadership
Vision
To be the leading agency in South Africa and the Region
DEVELOPMENT GAP
DEVELOPMENT GAP
DEVELOPMENT GAP
Business ModelSERVICE AGENCIES
Donors, Government, Private Sector: Support institutions with resources to reach their target
groups
TARGET POPULATION
Improve capacity of people and their institutions to reach services
Core Business Areas
Development Programme Management
Harnessing Resources
Delivery Capacity Building
2004/5 Annual Report
Opening Statements: (pg 3-5)• Executive Authority:
– Support Government’s National Development agenda– Mandate: manage implementation of government
development programme– Restructuring to enhance service delivery– Unqualified performance report: 3rd year
• Accounting Authority: – Set and exceeded performance targets– Committed to mandate– Active in key government programmes: ISRDP. EPWP,
Project Consolidate– Growth in business portfolio: vote of confidence– Opportunities & Challenges: shift in strategy;
performance monitoring; financial systems; new structure; communications strategy; HR strategy
Trustees Report (pg 6-19)
• Compliance• Corporate Governance• Trustees (new trustee)• Functioning of Board Committees• Financial Management• Risk Management• Trustees attendance• Trustees and Executive remuneration
Chief Executive Officer’s Report (pg 20-23)
• 15 years of IDT’s existence• Point of reference:
– National aspirations for just society and commitment to a better life for all
– Programme of Action– President’s challenge to public entities
• Approach: impact on people’s live + most effective use of our resources
• Shift in corporate strategy: change management challenges
Performance Report:Pages 24-41
General• Growth in turnover portfolio:
– R269m to R1,078 bn– + 30 programmes– + 80% provincial programmes
• Significant development programmes (Strategic Initiatives)– ISRDP– EPWP– Project Consolidate– Mpumalanga Poverty Strategy– Kaelo Miracle Stories
Impact• Poverty Reduction:
– Beneficiary testimonies– % programme funds directed at
beneficiaries– % of emerging contractors– Number of short term employment
opportunities• Challenge: Collection and reporting
relevant development data vs.% spend– Corrective action: Qualitative profiling
Impact• Capacity Building:
– Local Area Planning– Training local labour resources– Strengthen project steering
committees– Dept. of Labour
• Reduce infrastructure backlogs:– Pg 27
• Sustainability of natural environment:– Working for Water
Strategic Objective 1
To add value to the national development agenda through comprehensive programme management services
Strategic intent To effectively deliver a broad portfolio of development programmes in such a manner that it has a measurable impact on the poverty profile and positions the IDT as a leading development agency
Key result area Relevance to the National, provincial and local government development agenda
Corporate target 1 Performance indicator Means of verification
Good practice Benchmark
60% of IDT business is derived from Social Cluster poverty eradication programmes
% turnover derived from Social Cluster poverty eradication programmes
Performance reports
100% of turnover derived from Social Cluster poverty eradication programmes
Performance progress: 100% of programmes managed were derived from the Social Cluster poverty eradication programmes
Corporate target 2 Performance indicator
Means of verification
Good practice Benchmark
100% of programmes include development outcome indicators
% of programmes including development outcome indicators
Programme reports, PIA’s
100% programmes with D.O. indicators
Performance progress75% of programmes include development outcome indicators13 Development Dialogues conducted to broaden debate and understanding of outcome based sustainable developmentEstablished Learning and Innovation Unit Concluded national and provincial environmental scanConcluded qualitative profiling of four programmes to support the shift from outputs to outcomes
Corporate target 3
Performance indicator
Means of verification
Good practice Benchmark
100% fulfilment of contractual obligations
% number of contractual obligations fulfilled
Programme reports,
100% contractual conformance
Performance progress: 75% of programme budget spent
Corporate target 4
Performance indicator
Means of verification
Good practice Benchmark
CT 4: 100% response rate to critical issues raised by stakeholders
% response rate to critical issues raised by stakeholders
Performance reports,
100% response rate
Performance progressRetained 100% (or 15) of the 2003/4 clientsEffectively responded to all requests/invitations for engagement with political principals at national, provincial and local government level
Strategic Objective 2
To establish and maintain strategic partnerships to enhance development outcomes
Strategic intent
The IDT will demonstrate leadership in mobilising resources (technical, people, financial, information) from a range of strategic partnerships to achieve enhanced development outcomes in at least half of the number of programmes it manages.
Key Result Area
Integrated service delivery
CORPORATE TARGETS : 5
PERFORMANCE INDICATOR
MEANS OF VERIFICATION
GOOD PRACTICE BENCHMARK
50% of IDT programmes include resources from strategic partners
% of IDT programmes including resources from strategic partners
Quarterly Performance reports
% of programmes including resources from strategic partners
Performance progress: 70% programmes have resources from strategic partners
Strategic Objective 2
To enhance the delivery and absorptive capacity of development institutions
Strategic intent
To create viable institutions
Key Result Area
Sustainable Development outcomes
CORPORATE TARGET: 6
PERFORMANCE INDICATOR
MEANS OF
VERIFICATION
GOOD PRACTICE /
BENCHMARK
50% of IDT programmes include resources from strategic partners
% of IDT programmes including resources from strategic partners
Quarterly Performance reports
% of programmes including resources from strategic partners
Performance progress: 70% programmes have resources from strategic partners
Strategic Objective
To enhance the delivery and absorptive capacity of development institutions
Strategic intent
To create viable institutions
Key Result Area
Sustainable Development outcomes
CORPORATE TARGET: 7
PERFORMANCE INDICATOR
MEANS OF VERIFICATION
GOOD PRACTICE BENCHMARK
CT 7: 100% compliance with corporate budget guidelines and relevant legislation
% compliance Performance reports
100% compliance
Performance progressProvisional expenditure R118 million; within budgetTrack irregular, wasteful and fruitless expenditure
CORPORATE TARGET: 8
PERFORMANCE INDICATOR
MEANS OF VERIFICATION
GOOD PRACTICE BENCHMARK
CT 8: 100% alignment of corporate policies, organisational structure, business systems and practices with corporate strategy
% alignment on a pre-defined scale
Performance reports
100% alignment
Performance progressBusiness Plans aligned to corporate strategyPerformance agreements aligned to business planPolicy Management Unit establishedImplemented plan of corrective actions in response to the Emphasis of Matter items included in the Report of the Auditor General for the year ended 31st March 2004Developed a new HR strategyDevelop and implement a migration plan
Organisational HighlightsPages 42-55
Organisational Highlights
• Development Programme Services (pg.45)– Core business– Provincial office
• Shared Services (pg 47)– Capital fund & budgets– Internal support services: IT, HR, Legal and
admin• Business Development (pg 49-51
– research. strategy development & strategic planning
– stakeholder management, new business generation and IGR
Annual Financial StatementsPages 56-71
Report of the Auditor General(Pages 44-45)
• Audit of Financial Information: “in my opinion the financial statement fairly represent in all material aspects the financial position of the IDT as at 31 May 2005 . . .
• Audit of Performance Information: none measures this year
• Audit of Programme: 1st year
Report of the Auditor General(Pages 44-45)
• Without qualifying the audit opinion expressed above, attention is drawn to the following matters:– Differences identified in reconciling
programme accounts at year end– Weaknesses in controls over accounts
payable– Submission of annual financial
statements• Attending to these
Fruitless, wasteful & irregular expenditure
• Payroll Fraud: – Reported to Committee in March– + R526 000 Two employees suspended
on 3 June 2004– 25 June: disciplinary hearing &
dismissal
• Fictitious bank details: service provider– North West– Internal Audit: source of fraud
Concluding Comments
Strategic Challenges• Redefine IDT role/ value add as development agency
– Environmental scan and analysis: • 2007/09 Corporate plan• Cabinet Lekgotla
– Explicitly state our understanding of poverty and indicators (including MDGs) by which to measure IDT's performance
– Development hub– Models of people centred development– Reference Group: External development experts
• EPWP accelerate our delivery/value critical national development programme
• Vibrant learning organisation: learning all the time; seeking improving our development practice; innovative development solution
Proposals• Committee indicate what other information is
required to be comfortable with presenting Report to Parliament.
• Relationship between Committee and IDT• Invitation:
– Participate in our Development Reference Group
– IDT work wider = than Public Works programmes: visit, engage with beneficiaries
• Request opportunity to present:– 2006/8 Corporate Plan– 2007/09: 1st quarter 2006
Thank you
Thembi Nwedamutswu Chief Executive Officer
Edith V. VriesGroup Executive: Business