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