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Africa Institute of South Africa

Presentation to Science and Technology Portfolio Committee, Parliament, Cape Town

19 October 2010By

Dr Matlou – Chief Executive Officer

Purpose of the PresentationPurpose of the Presentation

To present on the AISA Annual Report and Audited Financial Statements 2009-2010.

AISA’s Vision and Mission

VisionAn indispensable African voice on African Affairs.

MissionTo produce relevant research products aimed at informing sustainable political and socio-economic development in Africa.

Position StatementDevelopment Through Knowledge

Brand PromiseAfrica's knowledge resource

AISA’s Values

Introduction

Policy and commitment Policy and commitment :

• AISA is an organ of state governed mainly by:– AISA Act (Act 68 of 2001)– Public Finance Management Act (Act 1 of

1999)

• AISA’s Current Research Agenda– African Continental Integration- 2008-2011

AISA’s MandateAISA’s mandate is derived from the AISA act (Act 68 of 2001), which establishes it as a statutory body aimed to:

Provide research and policy development support in its pursuit of programmes that contribute to the development of the African continent;

Conduct research and embark on training programmes that foster continental patriotism and that promote increased awareness and understanding of the African continent among the peoples of South Africa and across the globe; and

Establish and participate in and maintain networks in Africa and globally which will contribute to the peace development and prosperity of the continent.

The institute pursues three objectives:

Promote knowledge and understanding of African affairs through leading social scientists acting in concert and across various disciplines and through training and education on African affairs.

Collect, process and disseminate information on African Affairs, give effective advice and facilitate appropriate action in relation to the collective needs, opportunities and challenges of the continent, and

Promote awareness and consciousness of Africa at the grassroots level.

AISA: Objectives

Divisions within AISA Research: organised in 5 units, namely;

i. Peace and Securityii. Sustainable Developmentiii. Governance and democracyiv. Science and Technology, andv. Policy Unit

Publications Library and Documentation Outreach and International Liaison Corporate Affairs Finance and Administration Human Resources

AISA Management

• Dr Matlotleng Matlou – Chief Executive Officer• Dr. Monica Juma – Executive Director Research• Dr. Thokozani Simelane – Acting Director Research• Ms. Segametsi Molawa – Director LDS• Mr. Solani Ngobeni – Director Publications• Ms. Elsie Maritz – CFO• Ms. Ingrid Canham – HR Manager• Ms Nadema Jainoo - Corporate Affairs Manager

AISA 2009-2010

AISA’S ACHIEVEMENTS IN DELIVERING ON ITS MANDATE

RESEARCH OUTPUT

Figure 1: Research Outputs: 2009/2010

25

26

38

4226

45

Monographs/Occassional Paper Journal Articles

Policy Briefs Books / Book Chapters

Conferences/Seminars/ Workshop Media

i. Governance and DemocracySeeks to promote and encourage the institutionalization and entrenchment of democracy and governance fundamentals as a basis for integration. Work focuses on: International partnerships with Africa – including Brazil/ China/ India/ Japan/ Turkey/ USA- Africa, TICAD, Africa-G8, etc. through NEPAD; Auditing the African Peer Review Mechanism processes in Africa, in particular the implementation of the national plans of actions; Political leadership, parties and the sustainability of democracy in Africa;The role of triple bottom – economic, environmental and social issues for business in Africa; and The role of the Diaspora in the promotion of Africa’s governance and integration agenda.

RESEARCH THEMATIC UNITi. Governance and Democracy

Projects undertaken 2009/2010:

The nature and role of South Africa engagement in the reconstruction of Zimbabwe

Enhancing governance through information Technology

Africa in search of alternatives to current governance models and practices

RESEARCH THEMATIC UNITii. Peace and Security

Seeks to promote Africa’s Peace and Security Agenda, in view of the continent’s aspirations to create stable, peaceful and enabling environments for sustainable development. Focus is on: Promotion of democratic processes for conflict prevention and management; Conflict prevention, management and resolution mechanisms at national, regional, continental and international levels; Migration and security; Crime and human insecurity and its impact on regional integration; and Management of trans-border resources and implications for regional security.

RESEARCH THEMATIC UNITSii. Peace and Security


Evaluating the capacity of Africa’s multilateral agencies in dealing with conflict and crisis

Enhancing post conflict recovery and reconstruction

iii. Sustainable Development

In line with Africa’s commitment to promote people’s empowerment as a basis for its development, this unit promotes grassroots driven, equitable and inclusive use and management of resources (both renewable and non-renewable) with a focus on: Development of common standards for the access, exploitation, management and sustainable use of all resources; Monitoring performance in terms of commitments to empowerment e.g. Millennium Development Goals; Indigenous knowledge systems and appropriate technologies for beneficiation processes; Options for the empowerment of critical actors in development in particular the youth and women, and Examination and development of proposals for poverty intervention strategies.

RESEARCH THEMATIC UNITiii. Sustainable Development


Assessing regional integration (Continuation from 2008/9)

Informal trade: Integration from below?

iv. Science and Technology

AISA seeks to spearhead work towards the development and advancement of Africa’s science and technological platforms as a basis for the pursuit of its common aspiration for sustainable development through: Supporting processes towards harmonization of regulations that promote the application and safe use of technology; and promotion of the development of centres of excellence in science and technology; Promoting the development of frameworks that protect intellectual property in Africa, particularly the Pan African Organisation of Intellectual Property; Facilitating frameworks for technology sharing, transfer and adaptation among and across African countries, and Monitoring the implementation of Science and Technology plans by the relevant ministries and departments.

RESEARCH THEMATIC UNITiv. Science and Technology

Projects Undertaken 2009/10 :

Expanding the understanding of Africa’s urban dynamics

Investigation of the levels of food security in urban areas of major cities of Africa

Establishment of the Science and Technology Advisory Team.

RESEARCH THEMATIC UNITv. Policy Unit

Focus was on:

Internal AISA programmesInternship ProgrammeFellowship ProgrammeAISA Young Graduates Scholars AISA Guest Lecture Series

Externally driven knowledge transfer/capacity building initiativesThe Gulf of Guinea DirectorateSouth Africa-Nigeria 10 yearsAnnual DIRCO ConferenceDepartment of DefenceSupport to Universities

SPECIAL PROJECTS AND INITIATIVES

Electoral monitoring project Women and Defence Support to SADC Armed Forces Support to rest of Africa Support for AU Gender Policy North Africa Project The Standard Bank Project Social Science Research Council (SSRC) Archie Mafeje Lecture State of Africa AISA Autobiography Growing partnerships Russian Academy of African Affairs at AISA Other research-related activities

• Conferences :ECCAS, Leipzig panel, ISSC

• Research Seminars

• Engagement with the Media

RESEARCH OUTPUT

Figure 1: Research Outputs: 2009/2010

25

26

38

4226

45

Monographs/Occassional Paper Journal Articles

Policy Briefs Books / Book Chapters

Conferences/Seminars/ Workshop Media

PUBLICATIONS DIVISION

Primary Function: Publish Research output of AISA throughThe Accredited Journal: Africa Insight . 4 Volumes/ year :(Africa Insight 39)

Books: From AISA research projects, peer reviewed (2 Published in 2009/10)Africa at a glance: Facts and Figures 2008-2009 (Elize van As)Unequal Peers: The Politics of Discourse Management in the Social Sciences (Pearl Sithole).

Reports Zimbabwe Conference Report

Occasional Conference Papers (4 Published in 2009/10)

MonographsPolicy Briefs : intended for Policy makers and interest groups (28 published in 2009/10).

LIBRARY & DOCUMENTATION SERVICES

Focus on:Expanding Library holdings (67,158 books, 18,494 Journals, 4644 Ref collection, 4,706 Archives collection)

Providing efficient &effective services to clients: Academics, Embassies , Corporates, Individuals, Students, Government , AISA researchers& other .

Creating increased awareness of AISA mandate, products and services Hosted 3 SeminarsLDS Outreach Programme to Schools ( 121 Schools)Development of Web GIS/Geoportal for AISAAfrica Geo Info Research Network (AGIRIN) project.Maps CollectionAfrica Fast Facts and Africa in Focus map postersAfrica at a Glance.

CORPORATE AFFAIRS, OIL

Focus on Developing Partnerships, Hosting events and engaging with the Media.

Developing Partnerships:AISA/ CoT Ambassadorial Forum SeriesInvestment opportunities in African Cities (Kigali, Kinshasa)So what is new after Lisbon?The Role of African Women as Mothers &LeadersAfrica and the EU

Co-hosted events: AISA/IDEA: Presentation on Barack Obama’s foreign policy towards Africa: Challenges &Prospects for continent.AISA/Ebukhosini Solutions: The Islamisation & Arabisation of Sudan- A threat to Africa. AISA/ NEPAD/ CoT/DAC/ Northern Flagship Institution : Culture in Education (Africa Day)

CORPORATE AFFAIRS, OIL (Cont.)

AISA/Standard Bank: Transnational Communities in AfricaAISA/ DIRCO: 10th Anniversary of Diplomatic relations between South Africa and Nigeria.

Conferences and Seminars. Archie Mafeje Memorial LectureDefining the contours of knowledge production in the 21st CHIV/AIDS Human security and Violence: addressing Africa’s

developmental challengesScholarly Publishing in Africa: Opportunities and Impediments4th Annual Conference for Young and emerging African Scholars on Democracy and the rule of law.

Media Exposure.

Business Environment Analyses

External Factors Affecting the Business of AISA

• Competition from other organizations focusing on Africa, both in RSA and globally, e.g. universities, research consultancies and non-governmental organizations;

• The necessity to create varied sources of funding to augment the parliamentary grant

Business Environment Analyses (Cont.)

Identified Internal Factors Affecting the Business of AISA

• Lack of attractiveness of AISA as an employer as portrayed by the high staff attrition rate and difficulty in attracting quality researchers;

• Non-competitive remuneration;

• Management challenges.

Proposed Solutions to AISA Challenges

• Delineate AISA’s niche as dictated by its legislative mandate and location within the DST;

• Identify and partner with other similar research and governmental organizations in order to have a better impact;

• Develop a clear communication and marketing strategy that will ensure that AISA’s products and services are visible and attractive to all its stakeholders and widely accessible to policy-makers and decision-makers; and

• Implement recommendations cited in the 2010 Institutional Review relating to improving research capacity, funding from government, co-operation with like-minded institutions and good management.

HR

• The AISA Invested 55% of the MTEF allocation to our labour cost (including statutory skills-levy contributions and Interns)

– We developed 8 interns and received 3 interns from NRF during the period

• Over and above 1.5% of this was invested in the training and development of our staff.

The employment targets set vs. actual as at as at 31 March 2010

Division Target Actual Variance Interns/ Fellows

Total

Research 15 9 6 6 15

Library and Documentation Services

11 11 0 1 12

Publications

5 5 0 5

CEO/ OIL/ CA

6 5 1 6

Corporate Affairs(HR, FIN & Research Admin)

20 18 2 1 19

Total 57 48 9 8 57

Employee age distribution as at 31 March 2010

Gender 18-29Percentage 30-44

Percentage 45+

Percentage

Female 7 12% 18 32% 5 9%

Male 7 12% 13 23% 7 12%

Total 14 24% 31 55% 12 21%

Scientific Qualifications

Staff Qualification Number

Black/White

Male/Female

South African/ Non-South African

Current Percentage

Previous Year

Research staff with PhD Degrees 9

9 Blacks

7 Male 2 Female

4 South African 5 Non South African 64% 64%

Research staff with Masters degrees 5

5 Blacks

4 Male 1 Female

4 South African 1 Non South African 36% 36%

Research Staff enrolled for PhD degrees 2

2 Blacks 2 Male

2 South African 14%

Interns with Masters and PhD degrees 9

9 Blacks

7 Male 2 Female

9 South African 100%

Finance : Strategic objectives

Finance, Administration and Information Technology focused on the following strategic objectives during the 2009/10 financial year:

• Improve the control environment and comply to all relevant legislation;

• Ensure that AISA’s budget is utilized effectively and efficiently in pursuance of its mandate;

• Comply with GRAP standards, relevant audit requirements and National Treasury regulations;

• Achieve financial management excellence through efficient and effective controls and processes;

Finance : Strategic objectives (Cont.)

• Assess and mitigate the impact of the top risks across AISA;• Review and update policies on an annual basis;• Liaise with the internal and external auditors to correct all

identified control environment deficiencies; • Manage the institute’s cash flow to facilitate operations;• Effective management and safe-guard of assets;• Ensure that AISA’s insurance policy is adequate and covers all

assets and possible liabilities;• Increase the revenue to AISA to augment the grant received by

government;• Develop, maintain and improve AISA’s IT infrastructure;• Improve business efficiencies.

Internal Control Environment

One of the areas in which AISA rightfully excelled over the last three years was our commitment in improving the internal control environment. Vigorous monitoring, implementation of policies and procedures, a firm hand of the Chief Executive Officer and a zero tolerance approach from the Audit Committee and commitment from staff contributed to the improvements. Although AISA obtained an unqualified audit report for the financial year under review, AISA will continue to improve on matters identified and will endeavor to obtain a clean audit report in the years to come.

Audit Opinions Expressed over the last 5 years

Audit Opinions received

2009/10 Unqualified

2008/09 Unqualified

2007/08 Qualified

2006/07 Disclaimer

2005/06 Qualified

Financial Performance

AISA ended the financial year with an deficit of (R2,430) million (Surplus R3,997: 2008/9). The deficit derived from two risk identified liabilities at year end which comprised of Post retirement medical aid and the Pension fund conversion liabilities.

Although AISA ended the 2009/10 financial year with an accumulated surplus, it must be emphasized that the financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention which differs from cash basis of accounting.

Included in the accumulated surplus is committed projects to the amount of R1,168 million as per note 24 (P120) stated in the annual financial statements that was not expensed at year end. From the remaining R10,224 million R3,2 (SFP P95, N5) million refers to the retirement benefit asset, a non distributable asset. This refers to the surplus funds in terms of the current Defined Benefit Plan.

Financial Performance (Cont.)

However, the surplus funds for the retirement benefit assets will be distributed when the fund is converted to a Defined Contribution Plan. Also, included in the accumulated surplus are the non-current assets (property, plant, equipment and intangible assets) of the Institution to the amount of R4,847 (N2,3 P95) million to ensure that operations can be conducted and objectives be achieved.

From the above AISA also ring-fenced an amount of R3,935 million of which R1,804 million was not expensed at year end. Taking this above into account the accumulated surplus funds available for distribution are calculated at R371 thousand for the year ending 31 March 2010.

Total income generated for the 2009/10 financial year amounted to R30,684 million (R31,584 million : 2008/9).

95,4% (96,5% : 2008/9) of Total Income generated, comprised of the grant received from the Department of Science and Technology.


Total expenditure amounted to R33,114 million (R28,207: 2008/9). 49% (53% : 2008/9) of the expenditures incurred refers to employee related costs.

Non-current assets increased from R5,957 million to R8,050 million. The increase is as a result from acquisition of property, plant, equipment and intangibles. The retirement benefit asset also grown from R2,418 million to R3,202 million.

Current assets decreased from R11,953 million to R7,932 million. The decrease can be attributed to a decrease in trade and other receivables at year end.

Non-current liabilities increased from R4,088 million to R4,560 million from the prior year. The increase refers to a substantive increase of R2,661 million in provisions.

Trade and other payables decreased from R4,088 million to R1,929 million at year end.


AISA was solvent at year end with total assets less current liabilities at R11,392 million. In terms of liquidity, the Institution is liquid with the current ratio at 1,73 : 1 which means that for every R1 of current liabilities the entity has R1,73 of assets to cover its liabilities.

AISA managed through improved monitoring to reduce the accumulated surplus from

R13,282 million to R11,392 million.

Budget utilisation

The tables below reflect the budget versus actual in income and expenditure for the

2009/10 financial year:

Budget utilisation

Budget utilisation

AISA managed to utilise their budget more effectively and efficiently during the 2009/10 financial year. Although the objective was to have reached a break-even financial scenario at year end, AISA ended its financial year with a deficit of (R2,430) million.

Although income generated reflects a 4,19% variance on the overall actuals, it must be noted that income to the amount of R1,167 million was carried forward for committed projects not completed at year end. (See note 13 and 23).

Expenditure reflects a 3,39% variance. This can be attributed to employee-related costs with regard to the post-retirement conversion liability as well as the post-retirement medical aid obligation brought in at year end.

The overall variance in budget reflected is 7,6%

THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION