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Independent Development Trust
Presentation to
Portfolio Committee for Public
Works
2010/12 Corporate Plan
9 June 2009
Independent Development Trust
Presentation to
Portfolio Committee for Public
Works
2010/12 Corporate Plan
9 June 2009
ContentContent
Compliance Statement
Overview
2010/12 Corporate Strategy
Partnerships
Long-term Sustainability
Concluding Comments
Compliance Statement
Overview
2010/12 Corporate Strategy
Partnerships
Long-term Sustainability
Concluding Comments
Compliance StatementCompliance Statement2010/12 Corporate Plan is prepared in compliance with:
Chapter 29 of the Treasury Regulations;
Section 52 of the PFMA, which enjoins government departments and public entities to prepare a three-year Corporate Plan; and,
The structure complies with National Treasury’s 2008 Practice Note on the submission of Corporate Plans.
2010/12 Corporate Plan is prepared in compliance with:
Chapter 29 of the Treasury Regulations;
Section 52 of the PFMA, which enjoins government departments and public entities to prepare a three-year Corporate Plan; and,
The structure complies with National Treasury’s 2008 Practice Note on the submission of Corporate Plans.
OverviewOverview
OverviewOverviewThe IDT is
Trust
Development Agency
established in 1990.
Cabinet decision, March 1997:
"The IDT must be transformed into a government development agency that will implement projects which are commissioned by government departments. It must cease to be a civil society organisation, an independent agency or a funding agency
Public Finance Management Act: Schedule 2 Public Entity
Accounting Authority: Board of Trustees
Executive Authority: Minister of Public Works
The IDT is
Trust
Development Agency
established in 1990.
Cabinet decision, March 1997:
"The IDT must be transformed into a government development agency that will implement projects which are commissioned by government departments. It must cease to be a civil society organisation, an independent agency or a funding agency
Public Finance Management Act: Schedule 2 Public Entity
Accounting Authority: Board of Trustees
Executive Authority: Minister of Public Works
Further refinements to MandateFurther refinements to Mandate
1998: Amended Deed of Trust
Cabinet October 2000: Support government with coordinated management of the ISRDP
Presidency: Support ASGISA: March 2006
Cabinet November 2008: Programme Management Agency for the Jobs for Growth Programme
1998: Amended Deed of Trust
Cabinet October 2000: Support government with coordinated management of the ISRDP
Presidency: Support ASGISA: March 2006
Cabinet November 2008: Programme Management Agency for the Jobs for Growth Programme
How we understand our mandateHow we understand our mandate
Support the social policy agenda : halving poverty and unemployment (creation of decent work an sustainable livelihoods)
measurable improvements in the quality of life; and,
social cohesion
IDT established as a redistributive mechanism
Hence we support all spheres of government with planning and implementing the national development agenda with particular reference to the eradication of structural intergenerational poverty, employment creation; sustainable development and sustainable livelihoods
monitoring the effectiveness of interventions
deriving, documenting and sharing the lessons
Includes interventions initiated, designed and funded by the IDT
Support the social policy agenda : halving poverty and unemployment (creation of decent work an sustainable livelihoods)
measurable improvements in the quality of life; and,
social cohesion
IDT established as a redistributive mechanism
Hence we support all spheres of government with planning and implementing the national development agenda with particular reference to the eradication of structural intergenerational poverty, employment creation; sustainable development and sustainable livelihoods
monitoring the effectiveness of interventions
deriving, documenting and sharing the lessons
Includes interventions initiated, designed and funded by the IDT
Changing roles: responsive organisationChanging roles: responsive organisation
Over the 19 years of its existence, the IDT’s role in the development sector has evolved:
grant making agency
programme implementation agency
development planning & implementation
development integration and coordination
Programme design
Social facilitation
Demonstrated the capacity to ‘reinvent’ ourselves in response to the environment- remain relevant to our mandate
Over the 19 years of its existence, the IDT’s role in the development sector has evolved:
grant making agency
programme implementation agency
development planning & implementation
development integration and coordination
Programme design
Social facilitation
Demonstrated the capacity to ‘reinvent’ ourselves in response to the environment- remain relevant to our mandate
Business ModelBusiness Model
Anchored in the IDT’s
Commitment to the eradication of poverty, unemployment and alienation of majority trapped in the cycle of chronic intergenerational poverty; and,
Confidence in the social policy agenda
Belief that no single institution can do it alone
Government has the resources and the political will
Private sector, donors: do not have reach/experience
Poor: do not have capacity or power to access resources
Hence there is a Development Gap which needs vehicles
Anchored in the IDT’s
Commitment to the eradication of poverty, unemployment and alienation of majority trapped in the cycle of chronic intergenerational poverty; and,
Confidence in the social policy agenda
Belief that no single institution can do it alone
Government has the resources and the political will
Private sector, donors: do not have reach/experience
Poor: do not have capacity or power to access resources
Hence there is a Development Gap which needs vehicles
DEVELOPMENT GAP
DEVELOPMENT GAP
DEVELOPMENT GAP
IDT Business ModelIDT 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
Vision and MissionVision and Mission
VISION
To be the leading knowledge-based development agency
MISSION
The IDT, with strategic partners, will enable poor communities to access resources, and to recognize and unlock their own potential to continuously improve the quality of their lives
VISION
To be the leading knowledge-based development agency
MISSION
The IDT, with strategic partners, will enable poor communities to access resources, and to recognize and unlock their own potential to continuously improve the quality of their lives
2010/2030 Strategic Vision
2010/2030 Strategic Vision
Executive Summary Executive Summary
Strategic Objectives
To attain sustainable livelihoods through people centred development interventions
To pioneer innovative development solutions
To ensure excellence in service delivery
Strategic Objectives
To attain sustainable livelihoods through people centred development interventions
To pioneer innovative development solutions
To ensure excellence in service delivery
Figure 1: Together, Eradicating Intergenerational
Poverty
Figure 1: Together, Eradicating Intergenerational
Poverty
IDT social facilitation & mobilisation igniting innovation
Sustainable Development Solutions
Partner Resources
IDT Methodologies & Resources
COMMUNITY ASPIRATIONS & ASSETS
2008/09 Expenditure by Programme Category2008/09 Expenditure by Programme Category
Strategy: Page 17-22 Strategy: Page 17-22
Key roles: How will we do it?
Advocacy
Operational programmes which reach outlying communities
Best practice and capacity Building
Coordination
Leveraging of public sector and social partner resources
Integration
Key roles: How will we do it?
Advocacy
Operational programmes which reach outlying communities
Best practice and capacity Building
Coordination
Leveraging of public sector and social partner resources
Integration
MTSF and SON priority area IDT Programmatic Area Level of Effort(Time and People)
Funds (TrustFunds budget
spent pa)
Timeframe for P rog.(Utilization of Trust
Funds)
MTSF 1) Creation of Decent Work for All linked to an integrated rural development strategy including Phase II of the EPWP and the NYS
MTSF 2) Economic and Social Infrastructure investment Programme
MTSF 5) improving the nations health profile by (amongst others) stepping up the hospitals revitalization programme
SON: “as part of Phase II of the EPWP the Community Work programme will be fast tracked” and “working together we will speed up economic growth and transform the economy to create decent work and sustainable livelihoods”
1) Public-mandate Social Infrastructure
30% 0% * Medium 10 years
IDT Aligned to the MTSF and National Priorities….IDT Aligned to the MTSF and National Priorities….
MTSF 3) Improving quality of life in rural households linked to revitalized rural towns and skills development
SON: “[we must] transform our cities and towns [through] building cohesive, sustainable and caring communities with closer access to work and social amenities”
2) Community-mandated Social Infrastructure
20% 15%Short-term 5
years
MTSF 4) Investment in building human capital [and other community assets] including learning outcomes and ECD
MTSF 7) Promoting cohesive and sustainable communities by giving members of society the capacity to cooperate in ways that create the possibility of positive change
SON : “transformation will be undertaken in support of women, youth and people with disabilities”
3) Community-based Investment Mobilization
20% 50%Short-term 5
years
IDT Aligned to the MTSF and National Priorities….IDT Aligned to the MTSF and National Priorities….
MTSF 10) Substantially improving the delivery and quality of the democratic development state
SON “working with the people and supported by our public servants we will build a developmental state”
4) Catalytic Programme Management Support
20% 5%Long-Term 30
years
MTSF 8) Ensure that international relations contribute to the creation of an environment conducive for economic growth and development
SON “we are committed to building a better Africa and a better world”
5. International Technical Support & Exchange Programme
5% 10%Long-Term 30
years
Supporting the MTSF thrust to minimize the impact of the economic down-turn through jobs and poverty reduction measures
SON “the constraints posed by the economic crisis…should urge us to implement… with speed and determination”
6) Strategic Interventions
5% 10%Short-term 5
years
IDT Aligned to the MTSF and National Priorities….IDT Aligned to the MTSF and National Priorities….
Advocacy Work Cross cutting Cross cutting
Admin Overhead Cross cutting Cross cutting
Contingency 10%
IDT Aligned to the MTSF and National Priorities….IDT Aligned to the MTSF and National Priorities….
Concluding Comments on Corporate PlanConcluding Comments on Corporate Plan
2010/30 Strategic Vision concluded in Aug-08. However, demonstrates the IDT’s effective anticipation of the changes in the social policy agenda
Have already begun to review KPI’s and targets to ensure that we support the POA. E.g., submission to Social Protection and Community Development Cluster to deliver 9 functional schools and 4 Integrated Service Delivery Sites; implementing agency for the non-state sector of EPWP 2
2010/30 Strategic Vision concluded in Aug-08. However, demonstrates the IDT’s effective anticipation of the changes in the social policy agenda
Have already begun to review KPI’s and targets to ensure that we support the POA. E.g., submission to Social Protection and Community Development Cluster to deliver 9 functional schools and 4 Integrated Service Delivery Sites; implementing agency for the non-state sector of EPWP 2
2010/12 Budget2010/12 Budget
Main considerationsMain considerations
• DFI Review: (Business Case & expected funding)
• Strategic shift
• Existing financial capacity over the MTEF period
• DFI Review: (Business Case & expected funding)
• Strategic shift
• Existing financial capacity over the MTEF period
MTEF Comparative FiguresMTEF Comparative Figures
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
R million R million R million R million R million
Investment income
74.2 90,9 74.6 48.5 17.5
Management fees
13,0 9.5 24 40 60
Total Revenue
87.2 100.4 98.6 88.5 77.5
Expenditure (2008 and 2009
include Mud schools)
248 479.1 383.3 409.0 450.0
Deficit 160,8 378.7 284.7 320.5 372.5
Main Fund 1377 999 715 394 23
Budget: Concluding CommentsBudget: Concluding Comments
• Total budget increase is conservative and is in line with approved budget guidelines
• Allocations can be afforded in MTEF period
• Limited capacity exist to significantly impact on revenue generating capacity in the short term
• Cost efficiency of project initiated
• Total budget increase is conservative and is in line with approved budget guidelines
• Allocations can be afforded in MTEF period
• Limited capacity exist to significantly impact on revenue generating capacity in the short term
• Cost efficiency of project initiated
PartnershipsPartnerships
Partnerships PartnershipsPartnerships are inspired by IDT’s mission to work “with strategic partners, [to] enable poor communities to access resources, and to recognize and unlock their own potential to continuously improve the quality of their lives”. These have included:
International corporation partnerships directed at improving the capacity of the IDT and state to deliver such as Kellogg Foundation and the Republic of Cuba
Civil Society partnerships directed at gender mainstreaming and women’s empowerment including the Progressive Women’s Movement of SA, SA Women in Dialogue (SAWID), South African Women in Construction (SAWIC)
those directed at promoting economic participation, social cohesion and sustainable livelihoods which have included economic sector partners including small and medium sized contractors, the NEF, and Lonim Platinum as well as civil society organisations such as Khanya and SOMAFCO X
Consequently the IDT is in the process of finalising its stakeholder and resource mobilisation strategies with a view of integrating and synergizing its relations
Partnerships are inspired by IDT’s mission to work “with strategic partners, [to] enable poor communities to access resources, and to recognize and unlock their own potential to continuously improve the quality of their lives”. These have included:
International corporation partnerships directed at improving the capacity of the IDT and state to deliver such as Kellogg Foundation and the Republic of Cuba
Civil Society partnerships directed at gender mainstreaming and women’s empowerment including the Progressive Women’s Movement of SA, SA Women in Dialogue (SAWID), South African Women in Construction (SAWIC)
those directed at promoting economic participation, social cohesion and sustainable livelihoods which have included economic sector partners including small and medium sized contractors, the NEF, and Lonim Platinum as well as civil society organisations such as Khanya and SOMAFCO X
Consequently the IDT is in the process of finalising its stakeholder and resource mobilisation strategies with a view of integrating and synergizing its relations
Long-term Sustainability of the IDT
Long-term Sustainability of the IDT
Board Decisions: August 2005Board Decisions: August 2005
The IDT must invest its resources in innovative models of people-centered development and create the best practices and success stories in poverty eradication. This implied:
The reduction of the capital base
The IDT would be able to demonstrate its effectiveness to the Shareholder and citizenry thus persuading them to recapitalize the IDT as a further investment to the national development agenda.
The IDT must invest its resources in innovative models of people-centered development and create the best practices and success stories in poverty eradication. This implied:
The reduction of the capital base
The IDT would be able to demonstrate its effectiveness to the Shareholder and citizenry thus persuading them to recapitalize the IDT as a further investment to the national development agenda.
The Board decision 25-Oct-06 The Board decision 25-Oct-06
Accepts that operational budget might\will in future exceed income. However the IDT remains:
Relevant in its mandate
Invaluable to the Shareholder
A leading development agency
Did not and could not have predicated:
the real value of inflation which has decreased purchasing power of the capital base.
Fluctuating & diminishing real interest rates which are well beyond our control
Escalating cost with the exponential growth in business. This growth in the portfolio is expected to continue
The outcomes of the DFI review which confirmed the IDT’s role as a development agency but also highlighted the need for the IDT to charge public sector entities for services rendered
Accepts that operational budget might\will in future exceed income. However the IDT remains:
Relevant in its mandate
Invaluable to the Shareholder
A leading development agency
Did not and could not have predicated:
the real value of inflation which has decreased purchasing power of the capital base.
Fluctuating & diminishing real interest rates which are well beyond our control
Escalating cost with the exponential growth in business. This growth in the portfolio is expected to continue
The outcomes of the DFI review which confirmed the IDT’s role as a development agency but also highlighted the need for the IDT to charge public sector entities for services rendered
Institutional integrity
Financial Sustainability Relevance of
Mandate
Long-term Sustainability:three interdependent pillars
Business Case Process to dateBusiness Case Process to date
In June 2006 The IDT, with the support of DPW approached National Treasury, who recommended the Business Case process.
Started in Nov-06, but halted due to the DFI Review which was ‘concluded’ in May-07, which resumed in Aug-07
May 08: Business Case refined by the Board and aligned to corporate Strategy
Cabinet Memo drafted to make decision on mandate of the IDT and advocate recapitalisation
Rationale has been revised based on the 2010/30 Strategy as well as MTSF priorities
Costing model being finalised
In June 2006 The IDT, with the support of DPW approached National Treasury, who recommended the Business Case process.
Started in Nov-06, but halted due to the DFI Review which was ‘concluded’ in May-07, which resumed in Aug-07
May 08: Business Case refined by the Board and aligned to corporate Strategy
Cabinet Memo drafted to make decision on mandate of the IDT and advocate recapitalisation
Rationale has been revised based on the 2010/30 Strategy as well as MTSF priorities
Costing model being finalised
www.idt.org.za
THANK YOU
Thembi Nwedamutswu: Chief Executive Officer
(012) 845 2061+27 82 611 4000
thembin@idt.org.za