Annual Performance Plan 2012 - 2015

NRF Annual Performance Plan i

2012 - 2015

Research Driving Sustainabil i ty

Annual Performance

Plan

The mandate of the National Research Foundation (NRF) directs the organisation to contribute to the improvement of the quality of life of all the people of the Republic. The NRF, through all its activities, strives to make an ever increasing impact where it really matters. This endeavour

includes tackling difficult aspects related to sustainability referring not only to financial sustainability, but also to environmental and societal sustainability. The NRF 2012/132014/15

Annual Performance Plan shows the way towards improving our national triple bottom line people, planet and profit.

English: The National Research Foundation takes pleasure in presenting its Annual Performance Plan for 2012/132014/15. This plan outlines the activities and targets of the following business divisions: Research and Innovation Support and Advancement (RISA), Science Advancement and the National Research Facilities.

isiZulu: I-National Research Foundation inentokozo enkulu ngokwethula uhlelo lonyaka lokwenziwa komsebenzi luka 2012/132014/15. Lolu hlelo lunikeza umqondo ngemisebenzi kanye nokuhlosiwe kwe-ejensi exhasa ngezimali i-Research ne Innovation Support ne Advancement (RISA), i-Science Advancement kanye ne-National Research Facilities.

isiXhosa: I-National Research Foundation iyakuvuyela ukuthi thaca kwayo uyilo lokusebenza lonyaka luka-2012/132014/15. Olu yilo luxela imisebenzi kunye nezinto ejolise kuzo i-arhente exhasayo i-Research ne Innovation Support ne Advancement (RISA), i-Science Advancement, kunye ne-National Research Facilities.

isiNdebele: I-National Research Foundation ithanda ukwethula ihlelo lokusebenza lomnyaka mali u-2012/132014/15. Ihlelweli liveza imisebenzi neminqopho yomzenda omsekeli wezeemali i-Research ne Innovation Support ne Advancement (RISA), i-Science Advancement kunye ne-National Research Facilities.

SiSwati: I-National Research Foundation iyatfokotela kwetfula luhlelo lwemnyaka lwekusebenta lwayo lwa-2012/132014/15. Loluhlelo lukhombisa imisebenti kanye netinhloso te-ejensi yekusita ngetimali i-Research ne Innovation Support ne Advancement (i-RISA), i-Science Advancement, kanye ne-National Research Facilities.

XiTsonga: National Research Foundation ya tinyungubyisa ku andlala nkunguhato wa matirhelo ya lembe ra 2012/132014/15. Nkunguhato lowu wu hlamusela migingiriko na leswi languteriweke swa rhavi ra mpfuneto hi timali Research na Innovation Support na Advancement (RISA), Science Advancement, na National Research Facilities.

Sepedi: National Research Foundation ka boikgantho e hlagia peakanyo ya yona ya moomo wa ngwaga ka ngwaga ya 2012/132014/15. Pego ye e akareta meomo le ditebanyo ta setheo sa thekgo ya dithelete sa Research le Innovation Support le Advancement (RISA), Science Advancement le National Research Facilities.

Sesotho: National Research Foundation e motlotlo ho nehelana ka morero wa tshebetso ya selemo le selemo wa yona wa 2012/132014/15. Morero ona o hlalosa diketsahalo le dintho tse tla shejwa haholo ke ejensi e thusang ka ditjhelete Research le Innovation Support le Advancement (RISA), Science Advancement le National Research Facilities.

TshiVenda: National Research Foundation nga dakalo i khou vha netshedza pulane ya mashumele ya mwaha nga nwaha ya 2012/132014/15. Hei pulane i bvisela khagala mishumo na ndivho dza zhendedzi na u netshedza masheleni Research na Innovation Support na Advancement (RISA), Science Advancement, na National Research Facilities.

Setswana: National Research Foundation e motlotlo go tlhagisa thulaganyo ya go dira ga yona ga ngwaga le ngwaga wa 2012/132014/15. Thulaganyo e e tlhagisa ditiro le ditotiwa tsa setheo sa thuso ka matlole Research le Innovation Support le Advancement (RISA), Science Advancement, le National Research Facilities.

Afrikaans: Die Nasionale Navorsingstigting bied met geno sy jaarlikse werksplan vir 2012/132014/15 aan. Hierdie plan l die bedrywighede en doelwitte vir navorsingsbefondsing en-ondersteuning, vir wetenskapsbevordering en vir die Nasionale Navorsingsfasiliteite in bre trekke voor.

NRF Vision 2015

The NRF has a vision of ensuring research excellence within a transformed research workforce, and a sustainable environment, not only for the benefit of the present generation but also for future generations of South Africans. In short, this vision seeks to create: World-classresearch; Atransformedsociety;and Asustainableenvironment.

NRF Mission

To contribute to the knowledge economy in South Africa by attaining at least 1% of global research and development (R&D) output by 2015.

The NRF Values

In support of achieving its objectives the NRF adopted a set of values that are depicted in Figure 1.

Figure 1: Values of the NRF

Values

People-centred

Accountability

Respect

Passion for Excellence

World-class Service

Ethics and Integrity

4 NRF Annual Performance Plan

EXECUTIVE SUMMARY 6

PART A: NRF STRATEGIC OVERVIEW 2012-2015

1 NRF history and strategy 121.1 Brief history of the National Research Foundation (NRF) 121.2 The mandate of the NRF 121.3 The NRF strategic plan 121.4 The strategic goals of the NRF 121.5 The relevance of the NRF strategic goals 131.6 The progress of the NRF against its Vision 2015 goals 14

2 The organisational environment 152.1 Business standards 152.2 Core competencies of the NRF 152.3 Organisational structure 152.4 Clustering of NRF core business divisions 172.5 Accountability structure of the NRF 182.6 Changes in the organisational environment 202.7 Risks in the organisational environment 20

3 The performance delivery environment 213.1 The South African science landscape 213.2 The role of the NRF within the science landscape 223.3 Prominent partners in the delivery environment 223.4 Relevant policies in the delivery environment 223.5 Important developments in the delivery environment 263.6 Risks in the delivery environment 28

PART B: FINANCE AND BUSINESS SYSTEMS

1 Finance 311.1 Budget and sources of income 321.2 Three year projection of the NRF 20122013 MTEF allocation 321.3 Comparison of sources of funding 20082013 331.4 NRF investment principles 331.5 Savings and efficiency measures 331.6 Detailed budgets 341.7 Abridged financial statements 2012/132014/15 381.8 The NRF long-term infrastructure plan 40

2 Information and Communication Technology (ICT) 412.1 Purpose and scope 412.2 Main activities 412.3 Challenges 41

3 Corporate Governance 423.1 Purpose and scope 423.2 Main activities 433.3 Challenges 44

PART C: HUMAN RESOURCES AND STAKEHOLDER RELATIONS

1 Purpose and scope 482 Main activities 483 Challenges 48

TABLE OF CONTENTS

NRF Annual Performance Plan 5

We do not inherit the earth from our ancestors, we

borrow it from our children.- Native American proverb

PART D: RESEARCH AND INNOVATION SUPPORT AND ADVANCEMENT (RISA)

1 RISA overview 521.1 Purpose and scope 521.2 Sources of funding 521.3 RISA structure 521.4 RISA strategy 531.5 RISA performance targets 572 Knowledge Fields Development (KFD) 623 Applied Research, Innovation and Collaboration (ARIC) 654 Human and Institutional Capacity Development (HICD) 685 International Relations and Cooperation (IR&C) 726 Knowledge Management and Evaluation (KM&E) 747 Grants Management and Systems Administration (GMSA) 768 Special Project: Research Information Management Systems (RIMS) 809 Special Project: DST/NRF Internship Programme 8110 Special Project: International Council for Science Regional Office for Africa (ICSu ROA) 82

PART E: SCIENCE ADVANCEMENT 1 The South African Agency for Science and Technology Advancement (SAASTA) 861.1 Introduction 861.2 Focus and infrastructure 861.3 Main activities 871.4 Challenges 871.5 Science Advancement performance targets 87

2 Science Advancement at National Research Facilities 88

PART F: NATIONAL RESEARCH FACILITIES

1 Introduction 941.1 Definition and clustering 941.2 Generic activities 951.3 Challenges 951.4 National Research Facilities performance targets 962 iThemba Laboratory for Accelerator Based Sciences (iThemba LABS) 973 Hartebeesthoek Radio Astronomy Observatory (HartRAO) 1004 The South African Astronomical Observatory (SAAO) 1035 The South African Institute for Aquatic Biodiversity (SAIAB) 1056 The National Zoological Gardens of South Africa (NZG) 1087 The South African Environmental Observation Network (SAEON) 1118 Special Project: Square Kilometre Array South Africa (SKA-SA) 114

PART G: CORPORATE KEY PERFORMANCE TARGETS 2012/132014/15

1 NRF performance indicators according to the strategic goals 118

2 Balanced Scorecard Approach 1223 NRF Supporting Policy Framework 126

CONTACT DETAILS 128

LIST OF ACRONYMS 130

APPROVAL OF THE ANNUAL PERFORMANCE PLAN 134


EXECUTIVE SUMMARY

1 Introduction

The NRF is committed to contributing to the long-term well-being of the nation by adhering to its statutory mandate. The NRF adds value to the National System of Innovation through its five strategic goals, which are: Thepromotionofinternationallycompetitiveresearchasthebasisforaknowledge

economy; ThegrowthofarepresentativescienceandtechnologyworkforceinSouthAfrica; Theprovisionofcutting-edgeresearch,technologyandinnovationplatforms; Theoperationofworld-classevaluationandgrant-makingsystems;and Contributiontoavibrantnationalinnovationsystem.

In addressing the above goals, the NRF strives to address complex economic, environmental and societal changes.

The 20122013 Annual Performance Plan of the National Research Foundation (NRF) is a measured and realistic roadmap for investing in people, knowledge and research infrastructure. Such investment is widely recognised as an essential pathway to

economic sustainability and growth.

Wewillsupport...research, talent, and

research infrastructure for a vibrant

knowledge economy


The figure below depicts the NRF deliverables that contribute to the well-being of the nation.

Figure 2: The contribution of the NRF to economic growth

2 Future plans

2.1 Human capacity development

The future plans of the NRF focus on expanding the provision of high-level human capacity through all its business divisions.

The science advancement division of the NRF (the South African Agency for Science and Technology Advancement (SAASTA)) coordinates the science communication, education, and awareness programmes of the NRF. SAASTA manages programmes with a bottom-up approach to build the science skills base of the country.

The division for Research and Innovation Support and Advancement (RISA) and the National Research Facilities are well positioned to: Facilitate the funding and training of highly

skilled human resources (specifically from disadvantaged communities) to address the severe shortage of researchers in academia and industry;

Support growth in research and supervisorycapacitiesinhighereducation;and

Promote and provide training of humanresources in the high-technology environments of the National Research Facilities.

A variety of programmes are in place to support the respective categories of researchers (next-generation, emerging and established researchers) and therefore cater for different levels of research skills from development of new researchers to high-end research. These programmes promote the building of human capital while at the same time supporting the generation of new knowledge.

The NRF investment into human capacity development across all its divisions and initiatives is indicated in Figure 3.

2.2 Internationally competitive research

Globally competitive research thrives on international collaborations. The NRF promotes the internationalisation of South African research through servicing bilateral and multilateral science agreements. The total 2012/13 budget for international research collaboration amounts to R133 million. This

also includes funding for conference attendance;internationalexchangesandvisits;equipmentsharingandaccess;andstudentmobility.Thissupportshouldstrengthen international partnerships and leverage foreign study opportunities for South Africans.

As one of the three International Council of Science (ICSu) offices around the world, the ICSu Regional Office for Africa will promote collaboration between South African researchers and researchers from across the African continent. Investment in this area will amount to R4.2 million.

The funding portfolio of the NRF aims to strike a healthy balance between the funding of disciplinary-based fundamental research from all fields of science (including the Natural Sciences; Engineering; SocialSciences;andHumanities).Theportfolioalsomakesprovision for multi- and interdisciplinary work and promotes trans-disciplinary research in areas where multi-pronged solutions to strategic issues are required.

Infrastructure Peo

ple

Knowledge

NRF value

addition

Wewillpromoteinternationalisation of

South African research through servicing bilateral and bi-national science

agreements. The total budget for international research collaboration amounts to

R133 million


Strategic research is conducted in knowledge areas where South Africa has an obvious or potential geographical advantage and/or where South Africa has a clear and established knowledge advantage. For 2012/13, the estimated expenditure on these strategic knowledge areas (which include Astronomy;Palaeontology;BiodiversityandMarineBiology; the Southern Oceans and the Antarctic;and Indigenous Knowledge Systems) will amount to R674 million.

The key technology missions, Biotechnology and Nanotechnology, will receive an amount of R60 million in 2012/13.

The investment into priority research areas (the Grand Challengeswhich include Bio-economy (R42 million);Space Science and Technology (R541 million); EnergyandSecurity(R19million);GlobalChange(R92million);and Human and Social Dynamics (R26 million) amounts to a total of R721 million.

2.3 Research infrastructure and equipment provision

The NRF supports cutting-edge research, technology and innovation platforms. These platforms are available at the National Research Facilities and include unique research infrastructure, collections and datasets, complemented

Figure 3: Human capacity development excellence pipeline (Investment for 2012/13)

R319m

Next-generation Emerging Established Strategic Investments

ThuthukaPhD track

R13m

Postdoc

R54m

ThuthukaPost-PhD

track

R13m

ThuthukaRating track

R11m

Competitive Funding for

unratedResearchers

R7m

Incentive Funding for rated

Researchers

R100m

Competitive Funding for rated

Researchers

R28m

Blue Skies Research

R15m

SARChI

R302m

CoE

R70m

Discipline-based

Strategic focus

RISA-funded research outputs...2012/13 target:

4 000 2014/15 target:

4 200

Student supportFree-standing

scholarshipsGrantholder-

linked bursaries


by human resources with specialised skills. The National Research Facilities provide researchers across the country with access to big science equipment and are well positioned to foster science engagement, facilitate advanced human capacity development and deliver specialised services. The platforms operate in priority research areas such as Astronomy; Conservation,BiodiversityandtheEnvironment;andNuclearSciences.

RISA invests in equipment placement and infrastructure development at Higher Education Institutions (HEIs) and funds access to equipment available internationally. Although South Africa can boast pockets of world-class research facilities at selected institutions, significant investments are required to create and maintain a research environment within which world-class research can be realised. A breakdown of the intended investment into research infrastructure is provided in Table 1.

NRF also funds infrastructure platforms for science engagement and awareness e.g. science centres and museums; visitors centres, professional and amateurassociations, science festivals, science events and exhibitions. It is envisaged that 30% of the SAASTA budget will be allocated for this purpose. Recommendations to fund such platforms at the National Zoological Gardens (NZG) and the Johannesburg Observatory site will require additional investments.

3 Major developments 2012/13

Major developments foreseen for 2012/13 include: FinalisingtheSKAbidandmappingthefutureof

theMeerKATarray; The locationandmanagementof theastronomy

sector; Coordination of science engagement activities

acrosstheorganisationbySAASTA; Research Information Management System

(RIMS) a national project involving science councilsandHEIs;and

The proposed performance informationmanagement system (PIMS) which, if implemented, may end up being hosted and operated by the NRF.

4 Structure of the 2012/13-2014/15 Annual Performance Plan

The 20112014 NRF Annual Performance Plan outlines the history, mandate, strategic goals, core competencies and composition of this public entity. The plan includes a situational analysis of the NRFs operating and delivery environments that contextualises the organisation and its strategic goals within the National System of Innovation (NSI).

Separate sections provide information on the resources available to implement plans, and refer to the corporate support functions of the organisation.

Specific sections in the plan outline the activities and challenges of the main operations of the NRF: i.e. Research and Innovation Support and Advancement (RISA);ScienceAdvancement;andtheNationalResearchFacilities.

The final section sets performance targets for 2012/132014/15 in key performance areas. The performance targets are presented in two (2) ways: according to the strategic goals of the NRF and according to the balanced scorecard.

The annexures to the Annual Performance Plan, which contain the policies that support the operations of the NRF, are not included in the print version of this document, but are available on the NRF website. Hard copies will be available on request.

Table 1: Expenditure trends for 20082012 and the expected investments into research infrastructure: 2012/13

Category2008/09

Rm

2009/10

Rm

2010/11

Rm

2011/12 Budget

Rm

2012/13 Budget

RmCutting-edge research equipment investments (RISA) 92 90 186 136 125 Local and international collaboration with regard to equipment usage (RISA) 0 1 1 1 1 High-end research platforms (National Research Facilities) 418 428 503 474 525Strategic Infrastructure Investment (SKA-SA - providing a new science platform for Radio Astronomy) 128 171 188 413 553 Total 638 690 878 1 024 1 204


Part A

Cross section of Redwood showcasing

its history


NRF STRATEGIC OVERVIEW 20122015

The strategic overview links the mandate and plans of the NRF to the current South African policy context and the needs of South African society.

The NRF has special, targeted interventions, programmes and facilities that contribute to achieving the intent of the countrys National System of Innovation. The overview shows the relevance of the NRF strategy and the

value that will be created by the NRF activities.

Wewillcontribute... to the quality of life of

our people


NRF HISTORY AND STRATEGY1

1.1 Brief history of the National Research Foundation (NRF)

The NRF was established through the National Research Foundation Act (Act No. 23 of 1998) following the system-wide review conducted by the then Department of Arts, Culture, Science and Technology (DACST). The new entity incorporated the functions of the research funding agencies that had previously serviced various sections of the research community, namely the former Centre for Science Development (CSD) of the Human Sciences Research Council (HSRC) and the former Foundation for Research Development (FRD), which included several National Research Facilities.

As an independent statutory agency, the NRF promotes and supports research in all fields of knowledge. It also conducts research at, and provides access to the National Research Facilities. The NRF provides funding and services to the research community especially at higher education institutions (HEIs) with a view to generate knowledge and promote high-level human capital development. The NRF is also involved in diverse science advancement activities to stimulate public engagement in science over a broad front.

The organisation aims to uphold excellence in all its investments in knowledge, people and infrastructure.

1.2 The mandate of the NRF

The NRF receives its mandate from the National Research Foundation Act. According to Section 3, the object of the NRF is to promote and support research through funding, human resource development and the provision of the necessary facilities in order to facilitate the creation of knowledge, innovation and development in all fields of science and technology including indigenous knowledge, and thereby contribute to the improvement of the quality of life of all the people of the Republic.

1.3 The NRF strategic plan

The NRF strategic plan, Vision 2015 (http://www.nrf.ac.za/doc/nrf_vision_nrf_2015.pdf), was the result of organisational introspection and reorientation initiated during 2007. Vision 2015 took into account policy inputs such as the Review of the South African NSI by the Organisation for Economic Cooperation and Development (OECD) and the Ten-year Innovation Plan of the Department of Science and Technology (DST), entitled Innovation Towards a Knowledge-Based

Economy. Broad stakeholder consultation preceded the NRF Boards approval early in 2008 of the NRF Vision 2015.

Withthe2012/132014/15AnnualPerformancePlan,the NRF is entering its fifth year of implementation of this ambitious longer-term strategy.

1.4 The strategic goals of the NRF

The NRF adopted the following broad strategic goals (see Figure 4): The promotion of internationally competitive

researchasthebasisforaknowledgeeconomy; The growth of a representative science and

technologyworkforceinSouthAfrica; The provision of cutting-edge research,

technologyandinnovationplatforms; The operation of world-class evaluation and

grant-makingsystems;and Contribution to a vibrant national innovation

system.


Figure 4: The strategic goals of the NRF

1.5 The relevance of the NRF strategic goals

Despite the dynamic policy and operational environment within which the NRF functions (see the Performance Delivery Environment, Figure 7 on page 21) its strategic goals are of a longer-term nature and well aligned to recent policy shifts such as the 12 Outcomes of Government, the New Growth Path, and the Industrial Policy Action Plan (IPAP2). The NRF Annual Performance Plan also addresses issues raised in the Medium Term Strategic Framework (MTSF) for 20092014, Together Doing More and Better. Imperatives in these documents include: A skilled and capable workforce to support

an inclusive growth path within a knowledge

economy based on research, development and innovation;

Broadenedaccesstopost-secondaryeducationand an improved higher education throughput rate;

Staying abreast of global technological trendsand fully exploiting the countrys comparative advantages,includingtheuseofICTs;

Focusing on sectors with the potential todevelop long-term advanced capabilities such as Nuclear Sciences, Advanced Materials and Aerospace;and

Building strategies and support programmesfor research, development and innovation in the private and public sector.

The NRF strategic goals are notably aligned with the above imperatives. The NRF serves as a facilitator in the delivery of some very significant national objectives by: Developinghumancapital; Engagingsocietywithscience; Providingandpromotingtheuseofscienceand

technologyinfrastructure;and Promoting and supporting knowledge

generation and application in areas of strategic importance.

NSI

Research

Evaluation and grant-making

systems

Infrastructure Human capital


Doctoral students supported by NRF...

2012/13 target:1 715

Vision 2015 target: 2 000

1.6 The progress of the NRF against its Vision 2015 goals

The table below indicates the progress of the NRF against the targets set in its strategic plan, Vision 2015.

Indicator description

Actual 2008/09

Actual 2009/10

Actual 2010/11

Estimated Performance

2011/12Target

2012/13Target

2013/14Target

2014/15 Vision 2015Promoting internationally competitive researchProportion of global R&D outputs - 0,47% 0,52% 0,50% 0,54% 0,56% 0,60% 1%Number of NRF-rated researchers 1914 2142 2285 2400 2560 2560 2740 2500 Growing a representative science and technology workforce in South AfricaProportion of NRF-rated researchers from designated groups of total rated researchers

Black 16% 17% 19% 18% 18% 20% 21% 25%Women 26% 27% 28% 27% 27% 29% 30% 35%

Operating world-class evaluation and grant-making systems

Completion rate of applications for NRF-rating per annum 95% 99% 99,8% 95% 95% 95% 95% 95%Proportion of available grant funding disbursed (R000) 64% 84% 81% 86% 90% 90% 90% 100%Providing cutting-edge research, technology and innovation platformsPeer-reviewed journal articles (ISI and others) authored or co-authored by National Research Facility researchers 180 181 220 170 168 181 197 250 Contributing to a vibrant national innovation systemDoctoral students supported 1370 1384 1937 1519 1715 2181 2231 2000 PhDs per million of the population 26 27 - 28 - - - 35

Table 2: Progress of the NRF against its Vision 2015 goals

Promoting internationally competitive research as the basis for a knowledge economy

Growing a representative science and technology workforce in South Africa

Providing cutting-edge research, technology and innovation platforms

Operating world-class evaluation and grant-making systems

Contributing to a vibrant national innovation system

Legend


2.1 Business standards

The NRFs corporate values underpin all the operations of the organisation. The NRF is committed to interacting with its stakeholders in a manner that is ethical, professional and service-orientated.

Internal practices are based on these values to create a work environment that fosters personal development and integrity, builds teamwork and recognises and rewards performance.

Operating standards are continuously refined and audited to ensure that the organisation has reliable information for decision-making.

2.2 Core competencies of the NRF

The core competencies of the NRF are embedded in Leading-edgegrantmanagementsystems; World-classresearchevaluationand

benchmarkingpractices; Scienceandtechnologymanagement

experience; State-of-the-artresearchplatforms; SpecialisedresearchcapacityattheNational

ResearchFacilities; Strategicinformationaccumulationand

disseminationcapability; Capacitytocatalyselocalandinternational

science cooperation, networks and partnerships;and

Scienceadvancementexpertiseandplatforms.

2.3 Organisational structure

The NRF is composed of three main divisions, which are supported by corporate services (see Figure 5): ScienceAdvancement; Research and Innovation Support and

Advancement(RISA);and NationalResearchFacilities.

The three strategic divisions are supported by the following corporate services: HumanResourcesandStakeholderRelations,

comprising the following functions: - Humanresources; - Legalservices;and - Corporate communications and

stakeholder relations. FinanceandBusinessSystems,comprisingthe

following functions: - Finance (including supply chain

management); - CorporateGovernance;and - Information and Communication

Technology (ICT).

ORGANISATIONAL ENVIRONMENT2


Figure 5: The NRF organisational divisions

Science Advancement

National Research

Facilities/Plat-forms

Research and Innovation

Support and Advancement

(RISA)

Public S&T

Outreach (SAASTA)

National Research

Facilities/Plat-forms

Research and Innovation Support and

Advancement (RISA)

Public S&T

Outreach (SAASTA)

National Research Facilities/Platforms

Research and Innovation

Support and Advancement

(RISA)

NRFVision 2015

HumanResourcesandStakeholderRelations; and

FinanceandBusinessSystems.

Corporate Support Functions


2.4 Clustering of NRF core business divisions

The activities of the NRF are clustered below as follows:

Table 3: The clustering of NRF business divisions

RESEARCH AND INNOVATION SUPPORT AND ADVANCEMENT (RISA)

RISA takes responsibility for

ProgrammesandfunctionslargelysupportedbytheParliamentaryCoreGrant;and

ProgrammesmanagedbytheNRFasaserviceprovider.

SCIENCE ADVANCEMENT

The main function is to stimulate the interaction between science and society and to coordinate science and technology education, communication, outreach and advancement across the business divisions of the NRF.

NATIONAL RESEARCH FACILITIES

The facilities are clustered in terms of the area of knowledge production or of the national need that is being served.

Astro/Geosciences

SouthAfricanAstronomicalObservatory(SAAO),alsoresponsibleformanagingtheSouthernAfricanLargeTelescope(SALT);and

HartebeesthoekRadioAstronomyObservatory (HartRAO): this facilitysupports the SKAbidandwill formpartof theusercommunityofKAT-7andtheMeerKAT Array.

Biodiversity/Conservation/Environment

SouthAfricanInstituteforAquaticBiodiversity(SAIAB);

SouthAfricanEnvironmentalObservationNetwork(SAEON);and

NationalZoologicalGardensofSouthAfrica(NZG).

Nuclear Sciences

iThembaLaboratoryforAcceleratorBasedSciences(iThembaLABS):thisincludesboththeWesternCapeandGautengbranchesofthefacility.

SPECIAL PROJECTS

The NRF is involved in the following special projects:

TheResearchInformationManagementSystems(RIMS);

DST/NRFInternshipProgramme;

InternationalCouncilforScienceRegionalOfficeforAfrica(ICSUROA);and

TheSquareKilometreArraySouthAfrica(SKA-SA)project.


The structure and main projects of the NRF is shown in Figure 6.

Figure 6: NRF organogram

2.5 Accountability structure of the NRF

The current NRF Board was appointed in October 2011. The term of office of Board members expires on 30 September 2014. The Board operates according to formal terms of reference that are in line with the King III Report on Corporate Governance.

NRF Board

CEOCorporate Secretary

ICT Human Resources

Finance Legal Services

Governance Corporate Communications

Stakeholder Relations

Group Executive: Finance and Business Systems

Group Executive: Human Resources and Stakeholder Relations

Deputy CEO: National Research FacilitiesGroup Executive: Science Advancement

Deputy CEO: Research and Innovation Support and Advancement (RISA)

HartRAO/MeerKATNZG

iThemba LABS

HumanitiesHICD

Physical and Mathematical SciencesARIC

Life SciencesKFD

Engineering SciencesGMSA

Social SciencesIR&C

Research Fellows disciplinary inputs and strategy developmentKM&E

SAAO

SKA-SA Project

Group Executive: Astronomy [Secondment]

ICT - Information Communication TechnologyKFD - Knowledge Fields DevelopmentARIC - Applied Research, Innovation and CollaborationHICD - Human and Institutional Capacity DevelopmentIR&C - International Relations and CooperationKM&E - Knowledge Management and EvaluationGMSA - Grants Management and Systems AdministrationSAEON - South African Environmental Observation Network

SAIAB - South African Institute for Aquatic BiodiversityNZG - National Zoological Gardens of South AfricaiThemba LABS - iThemba Laboratory for Accelerator Based SciencesSAAO - South African Astronomical ObservatoryHartRAO - Hartebeesthoek Radio Astronomy ObservatorySKA-SA - Square Kilometre Array South AfricaSAASTA - South African Agency for Science and Technology Advancement

SAASTA

SAEON

SAIAB


Prof Robin Crewe (Interim Chairman of NRF Board)Office of the Rectoruniversity of PretoriaPretoria Dr Peter Clayton Deputy Vice-Chancellor of ResearchRhodes university

Prof Ben CousinsDST-NRF Chair in Poverty, Land and Agrarian Studies Institute for Poverty, Land and Agrarian Studies School of GovernmentUniversityoftheWesternCape

Mr Andr FourieHead of Sustainable Development:South African BreweriesSABMiller

Prof Murray LeibbrandtDirector: Southern Africa Labour & Development Research unit School of Economicsuniversity of Cape Town

Prof Peliwe LolwanaEducation Policy unitSchool of EducationUniversityoftheWitwatersrand

Dr Namane M MagauIndependent

Prof Sunil D Maharaj School of Mathematicsuniversity of KwaZulu-Natal

Ms Tryphosa RamanoChief Financial OfficerPretoria Portland Cement

Prof Mala SinghOpen universityunited KingdomProf Errol TyobekaPolitechnicWindhoekNamibia

NRF BOARD


2.6 Changes in the organisational environment

The following changes in the organisational environment should be noted.

2.6.1 Governance

Following the adoption of the NRF Strategic Plan, new decision-making and governance structures have been established including the NRF Corporate Executive. A Group Executive: Science Advancement joined the corporate executive team on 1 November 2011. The Corporate Executive is supported by a Directors Forum.

2.6.2 NRF review recommendations

During 2011, the recommendations of the five-yearly institutional review of the NRF were implemented by the respective business divisions. Visit http://www.nrf.ac.za/files/file/Synthesis%20Review%20Report.pdf for information about the review outcomes.

2.6.3 NRF Board recommendations

The NRF Board resolved that a dedicatedstand-alone unit managed by an appropriate Physicist/Astronomer should be established for the Astro/Geosciences cluster.

TheNRFBoardmaderecommendationsaboutthe repositioning of Science Advancement in the organisation. These recommendations are being implemented.

2.7 Risks in the organisational environment

Some risks in the organisational environment that may impact on the delivery of the NRF include: Effectivesuccessionplanning; Recruitmentofseniorscientistsandengineers

specifically to initiate new projects and continue withresearchprogrammes;and

Thechallengeofaddressingstaffturnover,staffretention and recruitment in a highly competitive labour market.

Wehaveestablished a stand-

alone unit for the Astro/Geosciences cluster and

repositioned Science Advancement within the NRF


THE PERFORMANCE DELIVERY ENVIRONMENT3

3.1 The South African science landscape

The NRF operates in the delivery environment of the South African science landscape. The institutions, endeavours and interventions within this landscape form part of and contribute to the NSI. An outline of some of the major role players, as adapted from the 2007 OECD mapping of the system, is provided in Figure 7.

Figure 7: The South African science landscape

Level 1: High level policy

Government Advisory: CHE, NACI, ASSAf

Level 2: Ministry

DST DHET the dti DoE DMR NDA DoH DAFF DEA National Treasury

Other Departments

Level 3: Agency

NRF DC SANERI MRC WRC

TIA/BRICs SEDA

Level 4: Research and Innovation Performers

NRF HEIs SABS NECSA Mintek ARC MRC SAWS Business Enterprises

HSRC Council for Geoscience

MCM

CSIR SANBI

AISA

SANSA


3.2 The role of the NRF within the science landscape

TheWhitePaperonScienceandTechnology,Preparing for the 21st Century (1996), outlines in broad terms the responsibilities of the NRF in the NSI, in which the NRF is mandated to fulfil a dual function. First, the NRF is a value-adding intermediary

agency between top-down steering policies and strategies of government on the one hand and research-performing institutions (mainly universities) and researchers on the other hand. In this function, the NRFs funding and other initiatives guide the system according to the relevant policies implemented within its sphere of influence (such as the higher education landscape, science councils and industry).

Second, the National Research Facilities areresearch performers that conduct and facilitate research, while providing infrastructure platforms for research in areas of priority and/or geographical advantage.

In addition, the NRF coordinates scienceengagement activities within the organisation and provides assistance across the NSI. Refer to the Science Advancement section on page 85.

Figure 7 on the previous page indicates the role of the NRF at the agency level (Level 3) and at the Research and Innovation Performer level (Level 4).

3.3 Prominent partners in the delivery environment

3.3.1 The Presidency

At the apex of government, the Presidency coordinates the implementation of a national strategic agenda and enhances the integrity of the state by: Ensuring coherence in planning, coordination,

policydevelopmentandimplementation;

Promoting a culture of accountability across allspheres of government through performance monitoringandevaluation;

Communicating progress against the priorities ofgovernment;and

Mobilisingthenationtowardsacommonvision.

3.3.2 The Department of Science and Technology

The NRF is well aligned with the DST planned policy initiatives, which are: Humancapitaldevelopment; GlobalandAfricancollaboration; Researchanddevelopment; Innovation;and Infrastructuredevelopment.

3.3.3 The Department of Higher Education and Training

The Minister of Higher Education and Training approved the terms of reference for a ministerial review of university funding. The review team was tasked to formulate a funding framework that supports the transformation goals of the university education system as set out in the Education WhitePaper,3of1997.

Implementation of the framework should improve: Theresponsivenessoftheuniversitysystemtothe

socialandeconomicneedsofSouthAfrica; Equitablestudentaccess; Qualityandexcellenceinteachingandresearch; Studentprogressionrates; Equity in the allocation of government funds

amongstuniversities;and Theeffectivenessandefficiencyintheuseoffunds

in higher education.

Other institutions with which the NRF has close relations include: TheCouncilonHigherEducation(CHE);and HigherEducationSouthAfrica(HESA).

3.4 Relevant policies in the delivery environment

The DST policies that impact on the NRF delivery environment are the indicator-based 2002 National Research and Development Strategy (NRDS) and the 2007 10-Year Innovation Plan. Other important policies include the 12 Outcomes of Government (refer to Table 6 page 27) and the New Growth Path (refer to Box 1 page 28).

3.4.1 The National Research and Development Strategy

The NRDS of 2002 emphasises the importance of knowledge areas where South Africa has an obvious or potential geographical advantage and/or where South Africa has a clear and established knowledge advantage.

Wewilldeliversupport for research

in research fields where South Africa has a

geographical and/or knowledge advantage


The National Research Facilities such as SAAO and HartRAO support this strategy by promoting astronomy in the following ways: Big science projects such as SALT and the

SKA-SAproject; Programmes such as the National Astronomy

and Space Science Programme (NASSP); andAstronomy Research Chairs as part of the South AfricanResearchChairsInitiative(SARChI);and

Embracing multidisciplinarity in order toleverage of the Multi-wavelength advantages that lie within the African continent.

Other research fields of geographical advantage include:

Human Palaeontology supported through thePalaeontological Scientific Trust (PAST) and the AfricanOriginsProgramme(AOP);

AntarcticresearchsupportedthroughtheSouthAfricanNationalAntarcticProgramme(SANAP);and

IndigenousKnowledgeSystems(IKS)supportedthrough the DST/NRF IKS programme specifically in the areas of food and health, education and curriculum development.

In the area of biodiversity the NRF is involved through National Research Facilities such as SAIAB,

SAEONandtheNZG; Specific programmes, including the Wildlife

BiologicalResourceCentre (wBRC); theSouthAfrican Biosystematics Initiative (SABI); theAfrican Coelacanth Ecosystem Programme (ACEP);theInternationalBarcodeofLifeProject(iBOL); numerous Research Chairs (SARChI);Centres of Excellence (CoEs) in Invasion Biology, Birds as Key Indicators of Biodiversity, and the TreeHealth Programme; and throughits collaboration with the South African Network for Coastal and Oceanic Research (SANCOR).

InvestmentsthatarealignedtotheNRDstrategyare shown in Table 4.

Table 4: Investment trends 20082011 and estimated 2012/13 budget for areas where South Africa has a geographical knowledge advantage

Areas of geographical and/or knowledge

advantageNRF Initiative

2008/09

R000

2009/10

R000

2010/11

R000

2011/12 Budget R000

2012/13 Budget R000

Space Sciences

South African Large Telescope (SALT)

182134 228387 235768 430125 541840

SAAO excluding SALT

SKA-SA project

Astronomy Research Chairs

Space geodesyNational Astronomy and Space Science Programme (NASSP)

Multi-wavelengthAstronomy(MWLA)

Human PalaeontologyAfrican Origins Programme (AOP)

8478 8050 13378 11000 12540 Palaeontological Scientific Trust (PAST)

Southern Ocean and Antarctic research

The African Coelacanth Ecosystems Programme (ACEP)

17114 21675 22212 19540 18120 Collaboration with South African Network for Coastal and Oceanic Research (SANCOR)

Marine and Coastal Management (MCM)

South African National Antarctic Programme (SANAP)


Areas of geographical and/or knowledge

advantageNRF Initiative

2008/09

R000

2009/10

R000

2010/11

R000

2011/12 Budget R000

2012/13 Budget R000

Indigenous Knowledge Systems (IKS)

IKS Research Grants7101 4607 5449 10518 20680

IKS Research Chairs

Biodiversity

WildlifeBiologicalResourceCentre(wBRC)

47979 49344 70453 59865 80569

South African Biosystematics Initiative (SABI)

International Barcode of Life project (iBOL)

Bioinformatics functional Genomics

Society, Ecosystems and Change

South African Research Chairs

CoE: Invasion Biology

CoE: Birds and Biodiversity Indicators

CoE: Tree Health

Grand Total 262806 312063 347260 531049 673749

3.4.2 The 10-Year Innovation Plan of 2007

The 10-Year Innovation Plan identified South Africas Grand Challenges in science and technology as Bio-economy; Space Science and Technology; EnergySecurity; Global Change; and Human and SocialDynamics.

A summary of Grand Challenges that are addressed by the NRF is provided in Table 5.

Table 4: Investment trends 20082011 and estimated 2012/13 budget for areas where South Africa has a geographical knowledge advantage (continued)

Wewilldeliversupport for the Grand

Challenges identified in the 10-Year Innovation

Plan


Table 5: Investment trends 20082012 and estimated NRF support for the Grand Challenges 2012/13

Grand Challenge NRF Initiative2008/09

R000

2009/10

R000

2010/11

R000

2011/12 Budget R000

2012/13 Budget R000

Bio-economy

Drug Discovery Programme (including FSATI)

26749 27591 38764 26559 42501

CoE: Biomedical Research: Tuberculosis

CoE: Tree Health Biotechnology

CoE: Epidemiological Modelling

CoE: Invasion Biology

CoE: Birds as Key Indicators of Biodiversity

Marine and Coastal Management (MCM)

International Barcode of Life (iBOL)

National Bioinformatics Network (NBN)

Space Science and Technology

Multi-wavelengthAstronomy(MWLA)

182134 228387 235768 430125 541840

Square Kilometre Array (Karoo Array Telescope (KAT) and MeerKAT))

Southern African Large Telescope (SALT)

National Astronomy and Space Science Programme (NASSP)

Astronomy Research Chairs

SAAO excluding SALT

Space geodesy

Energy Security

South African Nuclear Human Asset and Research Programme (SANHARP)

7433 7175 8320 17901 18787 Joint Institute for Nuclear Research (JINR)

Research Chair for Nuclear Engineering

Research Chair in Carbon Technology and Materials

Research Chair in Hydrogen Fuel Cells

Global Change

Applied Centre for Climate and Earth Systems Science (ACCESS)

16390 27512 43227 55160 92376

Inkaba yeAfrika

Long-term environmental observation (SAEON)

Global Change Research Plan (GCRP)

Environmental Isotope Laboratory (iThemba LABS)

Accelerator Mass Spectroscopy (AMS) unit (iThemba LABS)


Grand Challenge NRF Initiative2008/09

R000

2009/10

R000

2010/11

R000

2011/12 Budget R000

2012/13 Budget R000

Human and Social Dynamics

Research Chairs in Social Sciences and Humanities

6490 6593 11467 22860 26250 Mathematics Education Chairs (First Rand)

Human and Social Dynamics

Community Engagement with Science

GRAND TOTAL 239196 297258 337546 552605 721754

3.4.3 The outcomes approach of government

The 12 Outcomes adopted by Cabinet at its Lekgotla in January 2010 (see Table 6) directs the science to strengthen and support national competitiveness by achieving the following primary outcomes (in order of priority): A skilled and capableworkforce to support an

inclusivegrowthpath;and Improvedqualityofbasiceducation.

In addition to these primary outcomes, the NRFs funding and support of research programmes and science platforms can contribute to a number of the other outcomes: AlongandhealthylifeforallSouthAfricans; Vibrant, equitable and sustainable rural

communitieswithfoodsecurityforall; Sustainable human settlements and improved

qualityofhouseholdlife; Environmentalassetsandnaturalresourcesthat

arewellprotectedandcontinuallyenhanced;and CreateabetterSouthAfricaandcontributetoa

better and safer Africa and world.

In this regard the NRF will, in term of its mandate, also be in a position to contribute to two of the major outputs expected from the Ministry of Science and Technology:

Promoting and supporting the increase ofhigh-level human capital required in research, development and innovation for a growing knowledgeeconomy;and

Providing support to industryuniversitypartnerships.

3.4.4 The New Growth Path: The Framework

The New Growth Path forms the framework for reducing poverty and unemployment. Box 1 provides a summary of the issues relevant to the NSI and the NRF.

The New Growth Path outlines specific areas that require infrastructure, research and technological development. The NRF already contributes substantially to these investment areas through large science infrastructure projects, such as the SKA bid; SALT; Proton Therapy Centre; High ResolutionTransmission Electronic Microscope (HRTEM);NationalResearchFacilities recapitalisationstrategy;DHETscarceskillsprogramme;DepartmentofEnergy(DoE) CoE in Renewable Energy; CoE in InvasionBiology;MathsandMathsNumeracyChairs;AfricanInstituteofMathematicalScience(AIMS);andradio-isotope production capacity. Going forward, the NRFs funding allocations will increasingly be directed at these areas.

3.5 Important developments in the delivery environment

3.5.1 Structural arrangements

In 2009, the former Department of Education was divided into two departments: Basic Education; andHigher Education and Training. The scope of the latter covers all public and private higher education institutions, colleges, and the skills development sectors including the Sector Education and Training Authorities (SETAs), the National Skills Authority (NSA) and the National Skills Fund (NSF). The NRF manages the Scarce Skills Programme on behalf of the Department of Higher Education and Training.

The re-alignment of two important stakeholders i.e., the Departments of Agriculture, Fisheries and Forestry (DAFF) on the one hand, and the Department of Water and Environmental Affairs (DEA) on the other,impacts on the NRF service delivery environment. The NRF manages significant research and development initiatives in conjunction with these Departments (South African Network for Coastal and Oceanic Research (SANCOR) and South African National Antarctic Programme (SANAP)).

Table 5: Investment trends 20082012 and estimated NRF support for the Grand Challenges 2012/13 (continued)


3.5.2 The Technology Innovation Agency

The Innovation Fund is now managed and administered through the Technology Innovation Agency, a development that relieves the NRF of some responsibilities within the innovation chain, especially downstream, toward commercialisation. In addition, the Property Rights from Publicly Financed Research and Development Act has been promulgated and the National Intellectual Property Management Office (NIMPO) was established during 2010.

3.5.3 Astronomy

ThefuturedevelopmentofastronomyinSouthAfrica is greatly dependent on SALT, the outcome of the SKA bid and the construction of MeerKAT. Should South Africa win the SKA bid, this 2,6 billion project will change the

astronomy landscape on the African continent and globally. Irrespective of the bid outcome, South Africa will realise a technologically advanced research platform in radio astronomy. The SKA will increase opportunities for South African astronomers to conduct internationally recognised research, similar to its optical partner, SALT. These two astronomy platforms will enable researchers to actively pursue the multidisciplinary environment of multi-wavelength astronomy of the highest order. The extent of such developments depends on the SKA bid result, as the governance/operating structures for the SKA will differ from those of a National Research Facility. The outcome of the bid is expected in April 2012. Whateverthe outcome of the SKA bid, the South African government is committed to building MeerKAT, an array of 64 radio antennae.

Table 6: The 12 Outcomes of government

The mandate and goals of the NRF are aligned to the Medium-Term Strategic Framework (MTSF) and the responsibilities of the DST in response to the 12 Outcomes of government. The table below shows the importance of Outcome 5 for the DST and NRF. NRF-funded research impacts on the 12 Outcomes of government.

The 12 Outcomes of government MTSF DST NRF1 Improved quality of basic education

2 A long and healthy life for all South Africans

3 All people in South Africa are and feel safe

4 Decent employment through inclusive economic growth

5 A skilled and capable workforce to support an inclusive growth path

6 An efficient, competitive and responsive economic infrastructure network

7 Vibrant, equitable and sustainable rural communities with food security for all

8 Sustainable human settlements and improved quality of household life

9 A responsive, accountable, effective and efficient local government system

10 Environmental assets and natural resources that are well protected and continually enhanced

11 Creating a better South Africa and contributing to a better and safer Africa and world

12 An efficient, effective and development-oriented public service and an empowered, fair and inclusive citizenship

Adapted from www.thepresidency.co.za

NRF-fundedresearch impacts on the 12 Outcomes of

government


Infrastructuredevelopmentisidentifiedasacriticaldriverofjobsacrosstheeconomy.Thedocumentidentifiesinvestmentsinfivekeyphysicalandsocial infrastructure areas, i.e. energy, transport, communication, water and housing.

Scarceandkeyskillswereidentifiedandgovernmentdepartmentsandagenciesshouldworktogethertomeettargetsincludingtheaimtoproduce: - 30 000 more engineers by 2014 with an improved focus on high school maths and science and changes to university funding formulae to

achievethis; - 50 000 more artisans by 2015 with annual targets for Eskom and Transnet and for individual SETAs. Areasofstrengthshouldbeusedasadriveroftheprogrammetocreatejobs.Strongsectorsincludeagriculture,mining,tourismandotherhigh-level

services, the green economy and manufacturing. Inthegreeneconomy,expansionsinconstructionandtheproductionoftechnologiesforsolarpower,windpowerandbiofuelsaresupportedbythe

draft plan for electricity, which proposes that green energy sources should contribute 30% of new energy generation in the next 20 years. Clean manufacturing services are projected to create 300 000 jobs over the next decade.

TheNewGrowthPathcallsforre-industrialisationintheSouthAfricaneconomybasedonimprovingmanufacturingperformancethroughinnovation,strong skills development and reduced input costs. The document targets a doubling of South Africas research and development investment to 2% of GDP by 2018 (http://www.pmg.org.za/files/docs/101123new-growth-path.pdf).

TheGrowthPathidentifiestheemploymentpotentialoftourismandotherhigh-levelservicesandcallsforSouthAfricatopositionitselfasthehighereducation hub of the African continent.

Box 1: Aspects of the New Growth Path relevant to the National System of Innovation

The SALT has completed its sciencecommissioning, and scheduled observing time has commenced. Plans to improve the instrumentation focus on the mirror alignment system (SAMS) and the upgrading of the tracker at the top of the telescope to enable it to carry a larger load of new generation instrumentation such as the near-infrared arm for the spectrograph. This will improve the Multi-wavelength spectrographic capability of SALT significantly.

3.5.4 Review of the science landscape

In June 2010, the Minister of Science and Technology, Ms Naledi Pandor, appointed a ministerial task team to review the science, technology and innovation landscape and its readiness to meet the needs of South Africa. The NRF has made inputs to the committees enquiry and is ready to consider the implications of the final recommendations and decisions for the NRF.

3.5.5 Stakeholder relations

Compliance with principles of good governance as suggested by the King III Report requires effective communication with stakeholders. It is important that systems are put in place to facilitate dialogue between the organisation and its key stakeholders. The NRF should respond to the views and interests of stakeholders, such as funders, employees and clients. Proper communication can help to identify the differences in points of view between an organisation and its stakeholders. Differences of opinion about material matters need to be acknowledged and evaluated and may lead to the re-evaluating of an organisations view of material financial, environmental, social, economic and governance issues.

3.6 Risks in the delivery environment

Some risks in the delivery environment that can impact on the delivery of the NRF include: Lack of coordination between government

departments, agencies and institutions that havetocontributetogovernmentoutcomes;

Inability to influence the delivery of theappropriate human resources to feed into the highereducationandresearchenvironment;

Failure to leverage funds for research,research capacity development and research infrastructureprovision;

TheneedtoprovideSouthAfricanresearchersat public universities and research institutions with the research infrastructure that will enable themtobecomegloballycompetitive;

Lack of monitoring and tracking of theprogressionofpostgraduatestudents;

The need to attract and retain excellencein research and innovation at South African universities;and

The challenge to effect transformation whilegrowing a knowledge economy that will generate and translate existing and new knowledge into socio-economic benefits.


Part B

Scientific micrograph of plant cell


FINANCE AND BUSINESS SYSTEMS

The objective of the Finance and Business Systems unit is to ensure that the NRF has the appropriate financial and business systems to enable it to achieve its mandate and vision. The functions within this

unit include Finance, Information and Communication Technology (ICT) and Corporate Governance.

Globally, the demand for research funding often outstrips available funds. By implication this requires prudent investment choices and the efficient

implementation of plans. The strategy-driven and competitive funding approach of the NRF ensures that investments are fair, transparent and merit-based. The provision and implementation of efficient financial and business systems are

fundamental to the proper functioning of the NRF.

We will invest...to help South Africa take its place among the winning nations of

the world


The NRFs Annual Performance Plan and associated funding are aligned to the Medium-Term Expenditure Framework (MTEF) cycle based on a three-year allocation. The appropriation per the Estimates of National Expenditure (ENE) forms the core of the NRF funds. As a national agency of government, the NRF also undertakes various programmes and projects on a contractual basis.

1.1 Budget and sources of income

The NRF receives 96% of its funding from government through MTEF appropriations in three forms, namely: baseline allocation, ring-fenced funds as specified by the DST and contract funds for specific projects and programmes from the DST and other government departments. Contract funds represent 61% of the total income. Some 4% of income is generated from sales of services, entrance fees and interest.

The MTEF baseline allocation received by the NRF is primarily utilised to fund the core operational activities of the NRF. With the worldwide economic contraction and local fiscal constraints, the NRFs funding level has been impacted, in that the baseline allocation for 2012/13 has been reduced by 0.8% compared to the previous year with projected growth of 4% and 6% in the following two years, respectively. In this regard the NRF will be pursuing various austerity measures as outlined in section 1.5 on the next page.

In contrast, the level of contract income is increasing and discussions with the DST to reduce the number of contracts to minimise administration costs, promote flexibility and long term planning are ongoing. In this regard the NRF will receive some R1,238 billion through a single contract of which R961 million is allocated for Human Capacity

Development and R277 million for special category Research Chairs over three years.

Table 7 on next page provides further analysis of income over the three-year MTEF baseline projections for all sources of funding.

1.2 Three-year projection of the NRF 2012/13 MTEF allocation

The three-year allocation Letter that provides the baseline funding is received as a single line allocation allowing NRF the flexibility to apportion the allocation as it deems fit in line with business unit plans and operational requirements. The baseline allocation split as approved by the NRF Board is as follows:

FINANCE1


Table 7: Three-year projection of the NRF 2012/13 MTEF baseline allocation including DST contract allocation

NRF allocation from DST2012/13 2013/14 2014/15R000 R000 R000

Corporate 51377 54089 61043 RISA 436277 453728 480952 National Research Facilities 258185 268513 284624 Science Advancement 18345 19079 20223 SARChI 288034 299555 317529 SAEON 18592 19336 20496 Total NRF baseline 1070810 1114300 1184867 Year-on-year baseline movement -0,8% 4,0% 6,0%Single contract referred in MTEF Letter 248666 478423 511656 Total baseline and single contract 1319476 1592723 1696523

1.3 Comparison of all sources of funding 20082013

The current MTEF allocation shows a significant shift from ring-fenced funds to baseline allocation (core grant) following from very positive and constructive deliberations with the Minister of Science and Technology and her Department. It is anticipated that ongoing deliberations regarding contract and ring-fenced funded projects will correct the gap between the funding sources in favour of increasing the discretionary funds over the three-year MTEF period. This positive development would allow the NRF more flexibility and direct influence in terms of its financial and Annual Performance Planning. Figure 8 on page 34 illustrates the comparison of sources of funding.

1.4 NRF investment principles

The increased demand for research funding far outstrips the modest funding increases, which by implication requires the NRF to continuously make prudent investment choices in an efficient manner. In line with this, the NRF formulated eight (8) principles

to guide its investment and business approach across the range of its interventions, functions, facilities and programmes: Competitive funding applies to all funding

applications; Abalancedstrategy-drivenversusdemand-pull

approach is followed; Investmentsaresubjecttorigorousmerit-based

peer reviews and rating of the research outputs of individuals;

ThePhDisregardedasacriticalsystemsdriver; The NRF promotes cross-fertilisation and

rotation of expertise and talent between itself and other entities in the NSI;

The NRF strives to allocate resourcesappropriately throughout the organisation for efficient delivery of services and strategic goals;

Core principles of fairness, transparency andaccountability apply to all investment processes; and

Contributing to the transformation of societyin terms of race, gender and disability is considered at all times in order to redress systemic social and economic inequalities.

1.5 Savings and efficiency measures

The flat baseline MTEF allocation for 2012/13 has placed severe pressure on the core operations of the NRF. In this regard the income allocation to all business units has been marginally increased but well below inflationary levels. The targeted efficiency savings, which have an impact of some R45 million across the organisation, are being actioned as a pruning exercise to position the organisation for future sustainability.

In this regard, the NRF has initiated various austerity measures in 2011/12 which will continue well into the MTEF period. These include curtailing costs by means of leveraging economies of scale through negotiating better rates with suppliers; working more efficiently and economically by automating a number of processes, especially the rollout of the NRF online submission system; and work is in progress on developing a workflow based system specifically for tender management and procurement planning. An analysis of the organisations overheads and benchmarking against similar organisations has been


Figure 8: Comparison of sources of funding 2008/092012/13

0

500

1000

1500

2000R

m

Funds brought forwardContract and OtherMTEF allocation

2008/09

2009/10

2010/11

2011/12

2012/13

We will implementefficiency saving

measures that will have an impact of some R45 million

initiated while recommendations of the external five-year review are being actioned. A review of the NRF staff plan and staff establishment has commenced and the outcome will be implemented from 2012/13 onwards. The post-retirement medical benefit has been paid out to the vast majority of qualifying members in the form of individual annuities and a single annuity has been purchased for the remaining members who have declined the NRF offer, thereby managing these liabilities more effectively against future cost escalations, which are dictated by the rising medical costs that are well above the general inflation levels.

1.6 Detailed budgets

The detailed NRF budgets have been prepared taking into account all sources of income with due regard for efficiency savings, which have been factored in across all business units and will be closely monitored over the MTEF period. The detailed budgets for 2012/13 are presented in Table 8 on page 36.


Table 8: Abridged budget for year ending 31 March 2013

Budget 2012/13

National Research Facilities

Corporate RISA

Deputy

CEO:

National

Facilities

iThemba

LABSSAAO HartRAO SAIAB NZG SAEON

R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000Projected unspent funds/(deficit) at beginning of year (42173) 5390 641 (128) - 195 340 272 (1612)Government grant 45000 724312 10876 134605 33055 21395 12825 51805 18592 Additional government grant allocation - - - - - - - - - Designated funds carried forward - 47557 - - - - - - - Designated income - 886812 20000 27434 22762 2103 6456 - 7678 Interest received - 25303 - 1432 450 674 701 1750 400 Internal income 12058 22000 3000 2310 5946 2651 11068 15000 4150 NZG entrance fees - - - - - - - 29416 - NZG retail and other sales - - - 8306 1600 40 27 17975 - Other income 200 4 - 3450 632 839 384 330 1018 Total income Note 1 15085 1711377 34517 177409 64445 27897 31802 116548 30226 Grants and bursaries - (1524772) - (2523) (38) (300) (2333) - (941)Programme and operating expenses (23938) (63981) (10652) (78826) (17133) (10199) (8448) (49321) (11780)Internal expenses - (44768) (20000) (5427) (1452) (972) (2019) (1745) (233)Salaries (30693) (76514) (3122) (110413) (47383) (14177) (14674) (67353) (15160)NRF-DST internship stipends - - - - - - - - - Total expenditure (54631) (1710035) (33774) (197188) (66006) (25647) (27474) (118419) (28115)Net unspent funds/(deficit) for the year (39546) 1342 743 (19779) (1561) 2250 4328 (1871) 2111 Transfer from SALT fund - - - - - - - - - Capital expenditure (451) (5588) (26) (200) (2225) (4282) (6480) (107) (3756)Non cash flow items - depreciation - 4923 - 19979 3735 2403 2160 2250 1002 Unspent funds/(deficit) at end of the year after PRMB (39997) 676 717 0 (51) 371 8 272 (643)Add back PRMB buy-out Note 2 39463 - - - - - - - - Unspent funds/(deficit) at the end of the year before

PRMB (534) 676 717 0 (51) 371 8 272 (643)Staff complement 52 221 5 315 135 58 46 314 52 Note 1: The significant increase in budgeted income against the 2011/12 projected figures relates largely to contract income of some R200 million for RISA grant funding and R500 million against the SKA-SA project.

Note 2: The accumulated deficit has been approved by the Board against a six-year funding plan to offset the deficit. The deficit is due to the PRMB liability and the subsequent buy-out thereof.


Table 8: Abridged budget for year ending 31 March 2013 (continued)

Budget 2012/13

Special Projects 2012/13 2012/13 2012/13 2011/12 2010/11

Science

Advance-

ment incl.

SAASTA

SKA-SA

Other

(RIMS,

INTERNS,

ICSU)

Total Consolidated

% Change

Projection

against

Projection 2 Actual

R'000 R'000 R'000 R'000 R'000 Budget R'000 R'000Projected unspent funds/(deficit) at beginning year 711 - - (36364) (36364) - 63926 50803 Government grant 18345 - - 1070810 1070810 -0,8% 1078946 752247 Additional government grant allocation - - - - - - - 254634 Designated funds carried forward - - - 47557 47557 34,8% 35281 7747 Designated income 72669 771880 34425 1852218 1852218 59,0% 1164940 1020301 Interest received 1500 18393 - 50603 50603 2,9% 49185 76913 Internal income 10738 - 3713 92634 - - (0) (0)NZG entrance fees - - - 29416 29416 18,5% 24831 22711 NZG retail and other sales 300 - 4000 32248 32248 14,8% 28092 26050 Other income 830 - - 7687 7687 -35,7% 11950 7222 Total income Note 1 105092 790273 42138 3146810 3054176 24,3% 2457152 2218627 Grants and bursaries (24153) (44926) - (1599985) (1599985) -9,5% (1461482) (1354077)Programme and operating expenses (51762) (193680) (16805) (536526) (536526) -3,7% (517508) (346645)Internal expenses (11717) (3268) (1034) (92634) - - (0) (0)Salaries (18020) (72793) (5635) (475937) (475937) -13,4% (419605) (365878)NRF-DST internship stipends - - (18500) (18500) (18500) 7,9% (20094) (15129)Total expenditure (105651) (314666) (41974) (2723582) (2630948) -8,8% (2418688) (2081728)Net unspent funds/(deficit) for the year (559) 475607 163 423228 423228 - 38464 136899 Transfer from SALT fund - - - - - - - 3018 Capital expenditure (668) (483011) (163) (506956) (506956) -325,2% (119220) (114213)Non cash flow items - depreciation 1227 7404 - 45083 45083 1,6% 44392 38223 Unspent funds/(deficit) at end of the year after PRMB (0) 0 (0) (38646) (38646) - (36364) 63926 Add back PRMB buy-out Note 2 - - - 39463 39463 - - - Unspent funds/(deficit) at the end of the year before

PRMB (0) 0 -0 817 817 - - -Staff complement 52 126 10 1386 1386 13,8% 1218 1188


1.7 Abridged financial statements 2012/132014/15

Below is a summary of the financial statements for the period 20122015 aligned to the annual plans.

Table 9: Abridged financial statement 2012/132014/15

INCOME STATEMENT

CATEGORY 2012/13 R000

2013/14 R000

2014/15 R000

Government grant 1 070 810 1 114 300 1 184 867 Funds brought forward 47 557 24 321 31 374 Contract income 1 852 218 1 131 981 1 231 866 Interest received 50 603 32 195 32 000 Other income 69 351 88 242 99 884

Total income 3 090 540 2 391 039 2 579 991

Salaries 475 937 497 688 532 478 Programme and operating expenses 555 026 419 021 422 627 Grants and bursaries 1 599 985 1 297 594 1 287 387

Total expenditure 2 630 948 2 214 303 2 242 492

Income set aside for capital acquisitions 459 592 176 736 337 499 Less: Net capital expenditure (461 873) (167 856) (327 908) Net budgeted unspent funds for the year (2 282) 8 880 9 591 AssumptionsThe budgeted unspent funds are due to the funding of the accumulated deficit as a result of the PRMB liability buy-out. Contract funds for 20132015 are based only on confirmed contracts.The above excludes accumulated funds.


Table 9: Abridged financial statement 2012/132014/15 (continued)

CASH FLOW STATEMENT

CATEGORY 2012/13R000

2013/14R000

2014/15R000

Cash flow from operating activities 368 326 (98 982) 363 383

Cash flow from investing activities (315 803) (213 770) (373 139)

Cash flow from financing activities (200) (150) (150)

Net increase/(decrease) in cash and cash equivalents 52 323 (312 902) (9 906)

BALANCE SHEET

CATEGORY 2012/13R000

2013/14R000

2014/15R000

Property, plant and equipment and Intangible assets 852 954 1 020 810 1 348 717 Inventory 6 500 7 000 7 000 Receivables and prepayments 715 528 710 529 704 528 Cash and investments 557 219 244 317 234 411

Total assets 2 132 201 1 982 656 2 294 656

Accumulated fund and SALT fund (3 435) 5 445 15 036 Capital fund 851 854 1 019 710 1 347 617 Income received in advance 1 210 127 878 496 853 387 Payables and provisions 73 655 79 005 78 616

Total liabilities 2 132 201 1 982 656 2 294 656


1.8 The NRF long-term infrastructure plan

An account of the NRF infrastructure and other capital plans is provided in Table 10.

Table 10: Long-term infrastructure and other capital plans 2012/132014/15

Additional infrastructure and capital plans

The additional infrastructure and capital plans are dependent on the approval of additional funding by National Treasury. The additional plans will only be initiated and implemented once the MTEF submission has been done and approval thereof received.

Busi-ness

Division Description Outputs

Estimat-ed project

costs R000

Project duration 2010/11

R000

2011/12

R000

2012/13

R000

2013/14

R000

2014/15

R000

Additional infrastructure/capital

Start Finish

RISA Computer, of-fice equipment and building refurbishment

Enhanced working environment and improved efficiency

N/A

Bas

ed o

n on

goin

g re

view

and

ava

ilabi

lity

of fu

nds

20 540 13 101 10 181 6 311 6 229

Expansion of the NRF Head office (Pretoria) to accommodate business growth in RISA and the Corporate office estimated at R20 million.

National Research Facilities

Upgrade and replacement of scientific equipment

Access to state-of-the-art research equipment and facilities

N/A 55 797 74 608 21 034 11 831 7 943

A Strategic Research Infrastructure plan is in the process of develop-ment and it is estimated that some R1 billion would be required for replacement/new research infrastructure at National Research Facilities.

SAASTA Computer and office equip-ment

Enhanced working environment enabling delivery on various contract projects

N/A 1 817 3 537 1 540 390 640

Pending a national strategy on science advancement, the SAASTA Johannesburg Observatory site may require R60 million to upgrade.

SKA-SA project

Construction of KAT-7 and MeerKAT comprising 64 radio antennae

World-class telescope based on mission-driven innovation enabling South Africa to undertake cutting-edge research into deep space

3 037 052

2002/03 2015/16 36 059 27 974 282 455 195 238

358 327

The full scope of completion of the MeerKAT project is expected to cost approximately R1 billion more.

TOTAL 114 213 119 220 315 210 213 770

373 139


INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)2

2.1 Purpose and scope

The primary goal of the ICT division is to provide world-class IT services and support to RISA, SAASTA and the International Council for Science (ICSU). These services are also being deployed throughout the National Research Facilities. The ICT division has three service units: Software Development, Infrastructure and Network Services, and the Service Desk. The details of proposed initiatives are highlighted below.

2.2 Main activities

During 2012/13, the ICT division will: Ensure that systems development becomes a

core competency to support existing and new projects;

Facilitate the IT infrastructure procurement ofall IT equipment and services while maintaining IT platforms for all operations, including hosting external systems which are critical for enabling knowledge creation and management;

ProvideanITgovernanceframeworkalignedtothe King III Report;

Introduce ICTsystems lifecyclemanagement;and

Facilitatesupplierrelations.

The sustainability performance of IT will be improved through - an audit of the NRF IT carbon footprint; - implementing the 3Rs principles, i.e.

reduce, re-use and recycle; and - disposing of written-off equipment in

accordance with the national framework, which allows for obtaining carbon emissions reduction credits.

The Fourth NRF ICT Forum identified five projects that will contribute towards making the NRF a world-class organisation video conferencing; voice-over internet protocol (VoIP); electronic data and records management system (EDRMS); email integration; and Internet Protocol version 4 to version 6 transition (IPv4 to IPv6).

2.3 Challenges

The ICT division has identified the following potential challenges in 2012/13: Attractingandretainingtechnicalskills; Ensuring informationanddatacentresecurity;

and Mitigatingtheriskofvirusattacksandwebsite

failures.

Green computing...reduce, re-use and

recycle

We will deliverexcellent IT services to external and internal NRF stakeholders


CORPORATE GOVERNANCE3

3.1 Purpose and scope

The purpose of Corporate Governance is to ensure that the NRF Board, the Corporate Executive and the various business units are aware of and comply with legislation, regulatory frameworks and best practice with regard to governance, strategic

planning, reporting, sustainability and enterprise risk management.

The organisation is moving towards integrated reporting. With the constitution of the new NRF Board, the planning cycle will be used to implement revised data collection processes and reporting strategies to

provide stakeholders with a more holistic view of the NRF and its impact on people, planet and profit.

The main functions of the directorate are encompassed within the various units as set out in Figure 9.

Figure 9: Corporate Governance business divisions

SustainabilityGlobalReportingInitiativeHealthandSafetyEnvironmentalImpactOperationalSustainability

Risk and AuditInternalAuditEnterpriseRiskManagement

Business IntelligenceResearchInformation Management System (RIMS)BusinessIntegrationSystemConfigurationManagement

Strategic Planning and Reporting

AnnualPerformanceReportAnnualPerformancePlanQuarterlyReportsStrategicPlanning


3.2 Main activities

3.2.1 Strategic planning and reporting

The main role of the Strategic Planning and Reporting unit is to facilitate planning that complies with legislation and the DST rules of engagement. The unit is also responsible for monitoring and reporting performance in an integrated, transparent, and meaningful manner. Products of the unit include strategic plans, annual performance plans, quarterly reports, annual performance reports, key performance indicator (KPI) reports, and impact reports.

The unit is instrumental in transforming corporate reporting into integrated reporting, which is a holistic assessment of a business and that, in addition to the financial bottom line, also accounts for the interests of shareholders, and the impact on the environment and society.

3.2.2 Business intelligence

Business Intelligence is responsible for data generation and for its distribution within the NRF and to its stakeholders. Data are focused on, but not limited to, the NRF statutory reporting requirements. The unit also provides data as basis for decision-making and assists in developing appropriate performance indicators.

The unit will implement a business intelligence platform that incorporates data from legacy systems into a central warehouse to facilitate easy reporting and the effective monitoring of KPIs.

The Business Intelligence unit also champions the RIMS project.

3.2.3 Risk and audit

Enterprise risk management (ERM) is a risk-based approach to managing an enterprise, integrating the concepts of internal control and strategic planning. ERM provides the basis for risk management, which typically involves identifying risks to the organisations

objectives, assessing them, determining a response strategy and then monitoring progress.

National Treasury has developed a framework in response to the requirements of the Public Finance Management Act and in accordance with King III. During the 2011/12 financial year, the organisation implemented a risk-based audit approach in support of the ERM strategy.

The primary goal of Internal Audit is to ensure that adequate risk-based controls are in place and are functioning properly. Internal Audit coordinates internal and external audits, files all audit reports, prepares summary reports of audit findings, provides input and assists with preparation of the audit plan.

3.2.4 Assurance

Combined assurance relies on the integration and alignment of internal control or assurance processes to maximise the risk and governance oversight within an organisation and provide overall assurance to the Corporate Executive Committee, the Audit Committee and the Board.

Combined assurance is encapsulated in the 2009 King III Report on Governance for South Africa and is becoming best practice, as it is adopted by JSE-listed companies that currently have to comply or explain their non-compliance.

The ethos of combined assurance is to identify and map assurance against the key risks. The responsibility of providing assurance can be assigned to the most appropriate parties to reduce expenses and duplication of responsibilities while highlighting gaps in the assurance system.

The NRF will review its assurance system in 2012 with a view to optimise and enhance controls in a manner that will support the business. Implementing the results of the review will enhance transparency and oversight and reduce bureaucracy, duplication of responsibilities, and costs.

3.2.5 Sustainability

Organisations are responsible for exerting positive change on the state of the economy, the environment and social conditions, which equate to the triple bottom line. Reporting on sustainability performance is a mechanism to manage the impact of sustainable development. The NRF supports the Global Reporting Initiative (GRI), and embraces a sustainable development approach in its practices across all business divisions (see Table 11 on page 45).

We will create...value for our

stakeholders in the NSI


To date, the NRF has addressed critical sustainability and Safety, Health and Environmental (SHE) concerns through energy, water and waste management, as well as through Occupational Health and Safety management and Environmental Compliance.

An important objective is to ensure that sustainability is embedded as a culture within the organisation. The NRF is in the process of formulating an Energy Efficiency project proposal with Eskoms Demand Side Management in order to have an organisation-wide strategy on consumption reduction. Some objectives of the programme are to: Increase understanding of the energy crisis

among employees; Emphasisetheeffectsontheeconomy; Encourage employees to take responsibility

for domestic and commercial use of energy; and

Demonstrate how energy efficiency providesfinancial savings.

3.3 Challenges

Challenges identified by the governance functions are interlinked and are as follows: Facilitating the adherence to statutory and

regulatory frameworks; Providing the organisation with useful

information as a basis for decision-making; Obtainingbuy-inforriskmanagement;and Rolling out the Environmental Management

System.

Its not sufficient to do things better,

we need to do better things

Mark Shayler 2011


Table 11: Global Reporting Initiative (GRI) sustainability indicators

Strategic goal

Indicator description Benchmark 2010/11 Actuals Targets*

Performance Total Ratio 2011/12 2012/13 2013/14ENVIRONMENTAL PERFORMANCE Actual EN4 Energy:Quantityofelectricityused(Unit:kWh) 35 180 561 36 137 688 35 414 935 34 706 636EN8 Water:Quantityofwaterused(Unit:kL) 339 583 332 791 326 135 319 612EN14 Biodiversity: Does the business unit have a biodiversity impact

reduction plan (Yes/ No)Yes, three of the National Research

Facilities (i.e. NZG, SAIAB & SAEON) are specifically mandated with issues on

biodiversity impact reduction and research.

Strategies focussing on biodiversity research and protection continue to be

integral for the three facilities

SOCIAL PERFORMANCE: Labour Practices and Decent Work Actual Total %Occupational Health and SafetyLA6 Proportion of full-time employees (see definition above) who

participate in SHE committees to the total full-time staff complement

118 1 220 10% 10% 10% 10%

LA7 Number of facilities (see definition below) in reporting period 0 0 0 0Training and EducationLA10 Proportion of expenditure on training in the reporting period to

the total expenditure in the same period7 301 391 727 2% 3% 4% 5%

ECONOMIC PERFORMANCE Actual Total %Economic Performance

EC4Proportion of (government-DST) contract income to total income (R)

828 624 2 218 627 37% 38% 50% 55%

Proportion of (government-other) contract income to total income (R)

192 851 2 218 627 9% 9% 9% 9%

Notes* Please note - Targets indicated are aligned with 2011/12 six (6) month baseline and will be evaluated against the 2012/13 actuals to test accuracy.

EN4 and EN8 2011/12 targets for both energy and water consumption include SKA which was not included in the baseline actuals for 2010/11. A 2% decrease in consumption is targeted for both energy and water for 2012/13 and 2013/14 financial years.

LA6 The target will remain at 10% as this is currently above Occupation Health and Safety (OHS) Act re

Documents

Annual Performance Plan 2012 - 2015