Independent Development Trust

Portfolio Committee on Public

Works

IDT Corporate Plan

27 May 2011

Independent Development Trust

Portfolio Committee on Public

Works

IDT Corporate Plan

27 May 2011

Compliance StatementCompliance Statement In terms of Section 55 (1) (b) of the Constitution, the National Assembly must provide mechanisms to effect oversight of among other any organs of state.Hence the IDT’s 2011/12- 2013/14 Corporate Plan is being presented in respect of the Committee's oversight responsibility and to enable the Committee to recommend the IDT’s Corporate Plan to ParliamentThe IDT wishes to bring to the Committees attention that:

The Corporate Pan was lodged with the Ministry, DPW and National Treasury on 28 February 2011; and Presented to and was approved by the Minister on 14 March 201123 May 2011: Written approval by the Minister of the Foreword, Official sign-off and Shareholder Compact

In terms of Section 55 (1) (b) of the Constitution, the National Assembly must provide mechanisms to effect oversight of among other any organs of state.Hence the IDT’s 2011/12- 2013/14 Corporate Plan is being presented in respect of the Committee's oversight responsibility and to enable the Committee to recommend the IDT’s Corporate Plan to ParliamentThe IDT wishes to bring to the Committees attention that:

The Corporate Pan was lodged with the Ministry, DPW and National Treasury on 28 February 2011; and Presented to and was approved by the Minister on 14 March 201123 May 2011: Written approval by the Minister of the Foreword, Official sign-off and Shareholder Compact

2011/12 – 2013/14

Corporate Plan

2011/12 – 2013/14

Corporate Plan

ContentContentPart A: Executive Summary

Part B: Strategic Overview

Part C: Strategy

Part D: Links to Other Plans

Appendices

Part A: Executive Summary

Part B: Strategic Overview

Part C: Strategy

Part D: Links to Other Plans

Appendices

Executive Summary p.9-12Executive Summary p.9-12

IDT is required to undertake a robust review of its environment, consider its significance and implications and make strategic choices.Mandate is grounded in:

Constitution and the Bill of Rights. MTSF which provided the parameters for the IDT’s strategic choices in terms of its strategic goals, objectives and the application of the public resources with which it is entrusted.

Strategic focus reflects a shift in focus from primarily a physical infrastructure delivery implementer to facilitation of sustainable development towards being a world class community development agency.A key consideration is the resources available to deliver on the IDT’s mandate. Corporate Plan takes account of relevant frameworks and protocols

IDT is required to undertake a robust review of its environment, consider its significance and implications and make strategic choices.Mandate is grounded in:

Constitution and the Bill of Rights. MTSF which provided the parameters for the IDT’s strategic choices in terms of its strategic goals, objectives and the application of the public resources with which it is entrusted.

Strategic focus reflects a shift in focus from primarily a physical infrastructure delivery implementer to facilitation of sustainable development towards being a world class community development agency.A key consideration is the resources available to deliver on the IDT’s mandate. Corporate Plan takes account of relevant frameworks and protocols

Historical Background and Context p.13-14 Historical Background and Context p.13-14

The IDT is a Trust and a Development Agency established in 1990 through a R2billion endowment from government. It is governed by its Deed of Trust and relevant legislative frameworks. IDT was constituted as a Schedule 2 public entity with the promulgation of the PFMA in 1999 to support government with the eradication of poverty. Distinct phases in the 20-year life span of the IDT which correspond with shifts in the national development agenda and priorities as determined by the Shareholder and has effectively delivered its mandateIDT has a cross-cutting mandate serving all spheres of government and reports to Parliament through the Public Works with the Minister as the Executive Authority

The IDT is a Trust and a Development Agency established in 1990 through a R2billion endowment from government. It is governed by its Deed of Trust and relevant legislative frameworks. IDT was constituted as a Schedule 2 public entity with the promulgation of the PFMA in 1999 to support government with the eradication of poverty. Distinct phases in the 20-year life span of the IDT which correspond with shifts in the national development agenda and priorities as determined by the Shareholder and has effectively delivered its mandateIDT has a cross-cutting mandate serving all spheres of government and reports to Parliament through the Public Works with the Minister as the Executive Authority

Vision and Mission p.15 Vision and Mission p.15

VISION

A leading knowledge-based development agency.

MISSION

The IDT, together with strategic partners, will enable poor communities to recognize and unlock their own potential for sustainable development.

VISION

A leading knowledge-based development agency.

MISSION

The IDT, together with strategic partners, will enable poor communities to recognize and unlock their own potential for sustainable development.

Core Values and Operating Principles p.15-16Core Values and Operating Principles p.15-16

Values Operating PrinciplesPeople centered •We improve the lives of people.

•We work together as a team.•We put people first.•We are focused on our stakeholders

Integrity •We are open and honest in all our communications.•We believe in the integrity of our data and reports.•We treat one another with dignity and respect.•We conduct our business in a lawful manner.

Professionalism •We approach work in a systematic manner.•Our service is of good practice.•We deliver quality results.

Accountability •We have responsibility to communities, stakeholders and one another for our actions.•We are accountable to our clients, stakeholders and one another for our actions.

VISIONARY •We approach our work in creative manner.•Our solutions are innovative.•We have direct impact.

Environmental Analysis: Key Issues p.16- 21Environmental Analysis: Key Issues p.16- 21

The IDT utilizes a PESTEL analysis which examines political, economic, social, technological, legal and policy perspective strategy within the macro-environmentPOLITICAL: South Africa enjoys political stability as is evidenced by the 77% voter participation in the 4th national democratic elections. The 2010 Medium Term Budget Policy Statement set out the key spending priorities as:

Improving the quality of basic educationEnhancing the health of our peopleMaking our communities saferFostering rural developmentCreating jobs; and, Investing in local government and human settlements.

The IDT utilizes a PESTEL analysis which examines political, economic, social, technological, legal and policy perspective strategy within the macro-environmentPOLITICAL: South Africa enjoys political stability as is evidenced by the 77% voter participation in the 4th national democratic elections. The 2010 Medium Term Budget Policy Statement set out the key spending priorities as:

Improving the quality of basic educationEnhancing the health of our peopleMaking our communities saferFostering rural developmentCreating jobs; and, Investing in local government and human settlements.

Environmental Analysis: Key Issues p.16- 21Environmental Analysis: Key Issues p.16- 21

Economic: New policy regime and instruments introduced after 1994 yielded multiple outcomes such as macro economic stability contributing to unprecedented sustained economic growth.Social: Poverty in both urban and rural areas has proven to be stubborn, with many citizens having not all benefited from the social policy reforms and programmes such as the delivery of basic services, transfer of houses and land. Technological: South Africa has made great strides in the information technology and communication sectors. Legal: The Constitution remains the supreme law of the Republic of South Africa and PFMA the cornerstone of the management of state funds.

Economic: New policy regime and instruments introduced after 1994 yielded multiple outcomes such as macro economic stability contributing to unprecedented sustained economic growth.Social: Poverty in both urban and rural areas has proven to be stubborn, with many citizens having not all benefited from the social policy reforms and programmes such as the delivery of basic services, transfer of houses and land. Technological: South Africa has made great strides in the information technology and communication sectors. Legal: The Constitution remains the supreme law of the Republic of South Africa and PFMA the cornerstone of the management of state funds.

Sector Analysis p.21-24Sector Analysis p.21-24

In 2007, the IDT commissioned a study to review 310 listed public entities delivering services or funding at national, provincial and local level The study revealed that technically the development gap in SA is fully funded. What is lacking is delivery at community level. A cross-cutting mechanism is needed at community level to holistically address community aspirations and leverage community assets.SWOT Analysis p.24-25: This analysis of strengths weaknesses, threats and opportunities was considered in the operational plans of units and in individual performance agreements (See Table 3)

In 2007, the IDT commissioned a study to review 310 listed public entities delivering services or funding at national, provincial and local level The study revealed that technically the development gap in SA is fully funded. What is lacking is delivery at community level. A cross-cutting mechanism is needed at community level to holistically address community aspirations and leverage community assets.SWOT Analysis p.24-25: This analysis of strengths weaknesses, threats and opportunities was considered in the operational plans of units and in individual performance agreements (See Table 3)

Strategy (p.25-28.); Strategic Goals (p.29); KPIs (p.29-31)Strategy (p.25-28.); Strategic Goals (p.29); KPIs (p.29-31)

Strategy: Government’s PoA has a strong emphasis on people centeredness, sustainable development, rural development, social cohesion and poverty eradication.The IDT’s approach is anchored in the delivery of social infrastructure as redefined, “social infrastructure as all the necessary measures, facilities and networks required to prepare communities to receive, own, manage and sustain their own development.”Strategic Goals: Articulates the IDT’s responsibilities in promoting sustainable development in the poor and marginalized areas in the country, as an effective and efficient organisation . See Table 5 Corporate BusinessKey Performance Indicators (KPIs): Table 6. Derived from the implementation phase of the IDT’s 2010/30 Strategic Vision constitutes the measures by which the organisation’s success in achieving its objectives will be measured.

Strategy: Government’s PoA has a strong emphasis on people centeredness, sustainable development, rural development, social cohesion and poverty eradication.The IDT’s approach is anchored in the delivery of social infrastructure as redefined, “social infrastructure as all the necessary measures, facilities and networks required to prepare communities to receive, own, manage and sustain their own development.”Strategic Goals: Articulates the IDT’s responsibilities in promoting sustainable development in the poor and marginalized areas in the country, as an effective and efficient organisation . See Table 5 Corporate BusinessKey Performance Indicators (KPIs): Table 6. Derived from the implementation phase of the IDT’s 2010/30 Strategic Vision constitutes the measures by which the organisation’s success in achieving its objectives will be measured.

Strategic GoalsStrategic GoalsSTRATEGIC GOALS

STRATEGIC GOAL STATEMENT

STRATEGIC OBJECTIVE

OBJECTIVE STATEMENT BUDGET

SUSTAINABLE

DEVELOPMENT

The implementation of

targeted and people-

centred interventions

for sustainable

development in

marginalized and

impoverished

communities

EMPOWERED

COMMUNITIES

To build empowered and cohesive

communities through the delivery

of integrated social infrastructure

with particular emphasis on rural

areas

R 46.7

million

INTEGRATED SOCIAL

INFRASTRUCTURE

The effective delivery of integrated

developmental social

infrastructure in marginalised

communities

R 186.7

million

EFFECTIVE AND

EFFICIENT

ADMINISTRATION

To ensure that the IDT

is an efficient, effective

and compliant public

entity and development

agency

EFFECTIVE, EFFICIENT

AND COMPLIANT

ADMINISTRATION

To ensure excellence in deliveryR77.9

million

TRANSFORMED IDT To plan and implement the

transition of the IDT from the

current state to a transformed

ideal state

R 40.5

million

.

Detailed PlansDetailed Plans

The IDT’s Corporate Plan was prepared for a period to 3-years, the remainder of the current MTEF or term of the current Administration

..\..\..\..\2012-14 CORPORATE STRATEGY\CORPORATE PLAN\2011-12 IDT APP.docx

For purposed of planning and monitoring, the Corporate Business Plan and is captured as an Annual Performance Plan which among other delineates quarterly targets.

QUARTERLY TARGETS.docx

High Level Budget . . . ..\..\..\..\2012-14 CORPORATE STRATEGY\CORPORATE PLAN\Budget 2012 Meeting 14032011 submit.xlsx

The IDT’s Corporate Plan was prepared for a period to 3-years, the remainder of the current MTEF or term of the current Administration

..\..\..\..\2012-14 CORPORATE STRATEGY\CORPORATE PLAN\2011-12 IDT APP.docx

For purposed of planning and monitoring, the Corporate Business Plan and is captured as an Annual Performance Plan which among other delineates quarterly targets.

QUARTERLY TARGETS.docx

High Level Budget . . . ..\..\..\..\2012-14 CORPORATE STRATEGY\CORPORATE PLAN\Budget 2012 Meeting 14032011 submit.xlsx

Service Delivery Model

Service Delivery Model

IDT a key vehicle for advancing the key priorities of government by implementing programmes for departments across all 3 spheres of government. Spends in excess of R2bn p.a. in development programmesIts work is commissioned through concluded programme implementation agreements with client departments and intervention (e.g., nature; location; deliverables) therefore is the client ‘s discretionPartially recovers operating costs at between 3.5-5% for infrastructure programmes Incorporates government strategic imperatives in its programming – job creation; economic empowerment, skills development etc.Acts as a programme management support as against project management as against the role played by built environment consultantsCurrently pursuing transformation aimed inter alia at reviewing mandate legal framework and funding model to focus more sharply on community development rather than service delivery support

IDT a key vehicle for advancing the key priorities of government by implementing programmes for departments across all 3 spheres of government. Spends in excess of R2bn p.a. in development programmesIts work is commissioned through concluded programme implementation agreements with client departments and intervention (e.g., nature; location; deliverables) therefore is the client ‘s discretionPartially recovers operating costs at between 3.5-5% for infrastructure programmes Incorporates government strategic imperatives in its programming – job creation; economic empowerment, skills development etc.Acts as a programme management support as against project management as against the role played by built environment consultantsCurrently pursuing transformation aimed inter alia at reviewing mandate legal framework and funding model to focus more sharply on community development rather than service delivery support

Strategic Enablers

Strategic Enablers

Empowered employee Culture: IDT employees are generally free to take decisions and to apply discretion where required hence faster decision makingStable and strong leadership: stability at board and senior management has enabled incremental growth, institutional building and sustained organizational performance over the past seven yearsGood relationship with Executive Authority: this has helped to improve relations with the Public Works family and thus contributed in safeguarding organisational sustainabilityAutomated processes and delivery reporting systems: payment process and the programme reporting dashboard system have improved organizational performance. Ability to adjust to new portfolio demands the review of processes for automation into a seamless integrated system: Vendor Management; Contract Management,; Procurement; Management Fee Billing & Collection; Services Costing & PricingStrong governance culture: institutional mechanisms and practices regulating planning, performance management, reporting, and board interface have protected organisational integrity.

Empowered employee Culture: IDT employees are generally free to take decisions and to apply discretion where required hence faster decision makingStable and strong leadership: stability at board and senior management has enabled incremental growth, institutional building and sustained organizational performance over the past seven yearsGood relationship with Executive Authority: this has helped to improve relations with the Public Works family and thus contributed in safeguarding organisational sustainabilityAutomated processes and delivery reporting systems: payment process and the programme reporting dashboard system have improved organizational performance. Ability to adjust to new portfolio demands the review of processes for automation into a seamless integrated system: Vendor Management; Contract Management,; Procurement; Management Fee Billing & Collection; Services Costing & PricingStrong governance culture: institutional mechanisms and practices regulating planning, performance management, reporting, and board interface have protected organisational integrity.

Major Inhibitors

Major Inhibitors

Organisational insecurity: lack of protected mandate creates insecurity and undermines institutional building as more focus is placed on pleasing potential clientele and influential stakeholders at the expense of the former.Complex and conflicted clientele interests: this often results in misunderstandings and investment by the IDT in non-fruit bearing activities.Lack of timeous and integrated planning by clients – this often result in adverse programme funding protocol; late start of projects and tensions between IDT and clients.Client budget deficits – often leads to service provider non payments, litigations, work stoppages, community unhappiness, and bad reputation for the IDTConflict between public policy planning cycles and the pace of community based development: Unlike targets primarily reliant on technical inputs (e.g., no. of houses or electricity connections), community-based targets (e.g., community development plans, project and programmes initiated) are dependent on a range of factors (e.g., trust; community priorities;; absorptive capacity; conflicts) which are out of the IDT’s control, determines the pace of sustainable development. The dynamics of community development do not neatly fit within a financial year.

Organisational insecurity: lack of protected mandate creates insecurity and undermines institutional building as more focus is placed on pleasing potential clientele and influential stakeholders at the expense of the former.Complex and conflicted clientele interests: this often results in misunderstandings and investment by the IDT in non-fruit bearing activities.Lack of timeous and integrated planning by clients – this often result in adverse programme funding protocol; late start of projects and tensions between IDT and clients.Client budget deficits – often leads to service provider non payments, litigations, work stoppages, community unhappiness, and bad reputation for the IDTConflict between public policy planning cycles and the pace of community based development: Unlike targets primarily reliant on technical inputs (e.g., no. of houses or electricity connections), community-based targets (e.g., community development plans, project and programmes initiated) are dependent on a range of factors (e.g., trust; community priorities;; absorptive capacity; conflicts) which are out of the IDT’s control, determines the pace of sustainable development. The dynamics of community development do not neatly fit within a financial year.

Governance Structures p.32-33

Governance Structures p.32-33

Shareholder: On an annual basis the IDT reviews and agrees on its Shareholders Compact with its Executive Authority, the Minister of Public Works. It represents an agreement between the Executive Authority and the Accounting Authority of the entity, with respect to performance expectations and parameters. The Shareholders Compact is attached as Appendix 3.

Board of Trustees: A summary of the race and gender profile of the Board is reflected in Table 7 and the resumes of the Trustees are attached as Appendix 5

Executive Management: A summary of the race and gender profile of the Executive is reflected in Table 8 and the resumes are attached as Appendix 6.

Shareholder: On an annual basis the IDT reviews and agrees on its Shareholders Compact with its Executive Authority, the Minister of Public Works. It represents an agreement between the Executive Authority and the Accounting Authority of the entity, with respect to performance expectations and parameters. The Shareholders Compact is attached as Appendix 3.

Board of Trustees: A summary of the race and gender profile of the Board is reflected in Table 7 and the resumes of the Trustees are attached as Appendix 5

Executive Management: A summary of the race and gender profile of the Executive is reflected in Table 8 and the resumes are attached as Appendix 6.

Links to Other Plans p.34-48Links to Other Plans p.34-48

Financial Plan:The IDT’s financial capacity, both current and in the future, is critical to allowing it to succeed in its endeavours.The overall financial strategy is therefore to optimise its working capital requirements by curtailing overhead expenditure where possible and to accelerate revenue generation mainly through cost recoveries from social infrastructure programmes managed on behalf of government. The corporate strategy requires the IDT to invest its own funds in meeting its mandate through community-mandated sustainable development and poverty eradication programmes.. Given the depth of chronic poverty and evidence of the costs associated with community-driven and based development, this strategic focus area will require a material and sustainable source of additional funding. Refer to Appendix 1 and 1A of the Corporate PlanThe government has given the IDT R150m for this one year 2011/12 to fund the organisation's budget shortfalls, the transformation and organisational realignment process

Financial Plan:The IDT’s financial capacity, both current and in the future, is critical to allowing it to succeed in its endeavours.The overall financial strategy is therefore to optimise its working capital requirements by curtailing overhead expenditure where possible and to accelerate revenue generation mainly through cost recoveries from social infrastructure programmes managed on behalf of government. The corporate strategy requires the IDT to invest its own funds in meeting its mandate through community-mandated sustainable development and poverty eradication programmes.. Given the depth of chronic poverty and evidence of the costs associated with community-driven and based development, this strategic focus area will require a material and sustainable source of additional funding. Refer to Appendix 1 and 1A of the Corporate PlanThe government has given the IDT R150m for this one year 2011/12 to fund the organisation's budget shortfalls, the transformation and organisational realignment process

Links to Other Plans (p.34-48Links to Other Plans (p.34-48

Risk Management Plan: Page 34-30Fraud Prevention Plan: Page 41Legislative Compliance: Page 42Materiality and Significance Framework: Page 34Human Resources Plan: Page 44Environmental Plan; Page 47Communication Plan: Page 47Information Technology and Management Framework; Page 47Sustainability Framework: Page 48Knowledge Management Framework: Page 48

Risk Management Plan: Page 34-30Fraud Prevention Plan: Page 41Legislative Compliance: Page 42Materiality and Significance Framework: Page 34Human Resources Plan: Page 44Environmental Plan; Page 47Communication Plan: Page 47Information Technology and Management Framework; Page 47Sustainability Framework: Page 48Knowledge Management Framework: Page 48

AppendicesAppendices

Appendix 1: 2012-14 Budget Framework p.50-56

Appendix 1A: Budget Framework Schedule p.57-58

Appendix 2: 2012-14 Corporate Business Plan p.59-66

Appendix 3: Shareholder Compact p.67-80

Appendix 4: High Level Organogram p.81

Appendix 5: CV’s of Board of Trustees p.82-93

Appendix 6: CVs of Executive Management p.94-104

Appendix 1: 2012-14 Budget Framework p.50-56

Appendix 1A: Budget Framework Schedule p.57-58

Appendix 2: 2012-14 Corporate Business Plan p.59-66

Appendix 3: Shareholder Compact p.67-80

Appendix 4: High Level Organogram p.81

Appendix 5: CV’s of Board of Trustees p.82-93

Appendix 6: CVs of Executive Management p.94-104

Performance Monitoring and Reporting ProcessesPerformance Monitoring and Reporting Processes

REPORT STRUCTURE/PURPOSE DATE

Quarterly Unit Performance reports

Exco recommends to Board 20th day after end of Quarter

Quarterly Corporate Performance reports

Chairperson approves and sign-off on behalf of the BoT

27th day after end of Quarter

Lodged with Minister and DG in compliance with Shareholder Compact

Last day of the month after end of the quarter

Ratified by Board + Last week of May; 1st week of Aug & Dec; last week of Feb

Quarterly Unit Performance reports

Approved by Board Committees

+ 2nd week of May; July: Nov and Feb

Quarterly Corporate Performance reports

Approved by Board + Last week of May; 1st week of Aug & Dec; last week of Feb

Concluding RemarksConcluding Remarks

The Independent Development Trust hereby presents the Portfolio Committee with Corporate Plan for 2011/12 – 2013/14 cycle for recommendations to Parliament

Its planning for the next cycle, 2012/13- 2017/18 is underway.

The Independent Development Trust hereby presents the Portfolio Committee with Corporate Plan for 2011/12 – 2013/14 cycle for recommendations to Parliament

Its planning for the next cycle, 2012/13- 2017/18 is underway.