Medical Research Council

Achievements, Performance & Budget

Presentation to: Parliamentary Portfolio Committee on Health

16 April 2013

Professor Salim S. Abdool Karim

President: MRC

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Overview

• Mission of the MRC

• Research Highlights of 2012

• Strategic goals & performance

• Revitalisation of the MRC

• Financial state: 2013-2015

• Budget

• Conclusion

Mission of the MRC

Generating New Knowledge

for

Policy and Practice

to

Improve the Health of the Nation

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Highlight of 2012: MRC features in State of Nation Address

It was with good reason that we were delighted when late last year, studies from the Medical Research Council, the Lancet medical journal and others began reporting a dramatic increase in life expectancy…

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One of South Africa’s proudest achievements:

People living >10% longer than 5 years ago - due to AIDS treatment

Deaths in children <5yrs: ↓ 43%

(42 per 1000 live births in 2011)

Adults deaths: ↓ 20%

(40% premature deaths in 2011)

Life expectancy: ↑ by 6 years

(60 years in 2011) Bradshaw D, Dorrington R,Laubscher R. Rapid MortalitySurveillance Report 2011.Medical Research Council

Research highlights of 2012

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MRC shows mother-to-child transmissionof HIV reduced to 2.7% in 2011

MRC’s Health Systems Research Unit undertook a national HIV survey to assess mother-to-child transmission

In 2011, only 2.7% of newborns acquired HIV from their mothers down from 25% ten years ago

Presented at the International AIDS Conference, Washington 2012

Research highlights of 2012

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MRC’s Strategic Goals in line with NSDA

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MRC’s Strategic Goals continued…

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Quarterly indicators in Annual Performance Plan: 3rd Quarter Report

Strategic ObjectiveProgramme

Performance Indicator

Report Frequency

1st quarter

2nd quarter

3rd quarter

4th quarter

Q1 to Q3 perform-

ance

Annual target per indicator

Health research is undertaken

Peer reviewed journal articles

producedQuarter 179

(50)136

(100)101 (60)

X (118) 416 328

Health research is supported

Health research projects supported Quarter 44

(8)21 (8)

9 (4)

X (10) 74 30

Research results for policy

Policy briefs published Quarter 1

(4)1

(6)2

(3)X (7) 4 20

International research co-operation

Collaboration agreements signed Quarter 10

(8)19

(10)34 (5)

X (14) 63 42

( ) denotes quarterly target

MRC Organisational Performance: 2012/3 Q1-Q3

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Auditor-General Internal Control Dashboard: 2012

MRC Dashboard

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Informing the change needed

Revitalisation of the MRC

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Revitalisation of the MRC:Remedying 3 key problems

• Declining scientific stature of medical research– Sub-optimal intramural research productivity, few articles in the top

medical science journals and low article citation rates

• MRC not fulfilling custodianship role in medical research in SA– 19% of baseline budget allocated to Universities for all medical

research - compromising clinical research– Number of intramural units > Number of extramural units (intramural

expansion, duplication, poor integration, incoherence)

• MRC intramural units spend ~90% of their budgets on salaries– losing leadership role as MRC becomes increasingly dependent on

donor funding and donor agendas

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Activities implemented to revitalise the MRC

1. Prioritising in-house research to focus on the 10 most common causes of death and disease in South Africa

2. Increasing extramural funding to universities and medical schools in order to rebuild their health research

3. Creating new funding approaches for the development of new drugs, vaccines and diagnostic tests

4. Improving the efficiency and effectiveness of the MRC’s administrative systems

5. Improving peer-review and the quality of MRC research

6. Improving the MRC’s laboratory and space utilisation

7. Improving research support functions eg. medical journals

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Financial State of the MRC in 2012MRC baseline grant grew + 3.5% pa in last 4 years

Dire financial state

MRC budget has been shrinking in last 4 yrs

Heading for repeated budget deficits

MRC Budget < 10% of NIH funding to SA

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  Source 2013/14Total for

2013-2015Funds are meant for

MTEF allocation from Treasury via NDoH

  Annual Baseline R326m R1,037m MRC baseline government allocation

Additional fund-raising

1.Additional funds directly from treasury - Competitiveness Fund

R90m R340mPredominantly for fixed-term grants for research and infrastructure in Universities (Flagship projects)

2.Additional funds directly from treasury

R0m R100m Funds to match Gates contribution

3. Gates Foundation R30m R100m For technologies in HIV and TB

4. Grant from DST R29m R122m For technologies in HIV, TB & Malaria

5.NHRC: NDoH Scholars Programme

R15m R45m PhD Training

Total Additional Funds R164m R707m ~R300m needed to double theMRC’s baseline budget

Financial state of the MRC (2013 - 2015)

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Summary of income for MTEF period (excluding VAT)

2012/13 (R'000') % Incr 2013/14 (R"000") % Incr 2014/15 (R'000') % Incr 2015/16 (R'000')Permanent Baseline Allocation 245 342 8% 265 415 5% 279 160 5% 292 001Improve Conditions of Services (ICS) Allocation 3 660 146% 9 000 34% 12 088 30% 15 750Investment Income 19 000 22 000 23 000 25 000Overheads Recovered 22 000 26 000 26 500 28 000Sundry Income 4 500 7 000 7 350 7 800Skills Levy Recovered 1 070Total Baseline Allocation 295 572 11% 329 415 6% 348 098 6% 368 551Contract Specific AllocationSAAVI 11 383 5% 11 952 5% 12 550 5% 13 127

Economic Competitive & Support Package3 Year Allocation 0 78 947 87 719 219 298

Total Allocation from National Treasury 306 955 37% 420 314 7% 448 367 34% 600 976

DST funding for SHIP 29 000 36 000 57 000

Gates Foundation funding 30 000 30 000 40 000

MRC Contract Research Funding (estimated) 250000 250 000 265 000 280 000

Grant Total 556 955 31% 729 314 7% 779 367 25% 977 976

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Overview of Total MRC Budget

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2012/13 (R'000')

% Variance

2013/14 (R'000')

% Variance

2014/15 (R'000')

% Variance

2015/16 (R'000')

Income 280 308 18% 329 415 6% 348 098 6% 368 551

Expenditure 332 492 -1% 329 415 6% 348 098 6% 368 551

Projected Surplus / (Deficit) -52 184 0 0 0

2012/13 (R'000')

% Variance

2013/14 (R'000')

% Variance

2014/15 (R'000')

% Variance

2015/16 (R'000')

Other Income 249 027 61% 399 899 8% 431 269 41% 609 425

Expenditure 239 027 67% 399 899 8% 431 269 41% 609 425Capex 13 684 31 000 37 000Research Operating 386 215 400 269 572 425

Projected Surplus / (Deficit) 10 000 0 0 0

2012/13 (R'000')

% Variance

2013/14 (R'000')

% Variance

2014/15 (R'000')

% Variance

2015/16 (R'000')

Income 529 335 38% 729 314 7% 779 367 25% 977 976

Expenditure 571 519 28% 729 314 7% 779 367 25% 977 976

Projected Surplus / (Deficit) -42 184 0 0 0

NATIONAL TREASURY FUNDING OVER MTEF PERIOD

PROJECTED OTHER RESEARCH FUNDING OVER MTEF PERIOD

TOTAL PROJECTED FUNDING OVER MTEF PERIOD

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Conclusion1. MRC made major research contributions in 2012 – even

receiving a mention in the “State of the Nation” address

2. On track for clean audit (Financial & Performance) in 2012 Revising Strategic Plan in 2013 – new strategic goals & targets Raising standards to World-class – focus on impact

3. Revitalisation of the MRC well underway Increased funding for new drugs, vaccines and diagnostic tests Re-organisation of intramural research to focus on high impact New funding for Universities – rejuvenating health research in SA

4. Fund-raising: Need ~R100m more p.a. to reverse ↓budget

5. Generating new knowledge to improve Health of the Nation

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