National Lotteries Board - Annual Report 2012/13

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National Lotteries Board - Annual Report 2012/13 2012/13 1 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 © NATIONAL LOTTERIES BOARD 2013 AUDITORS: Auditor-General SA Published COMPANY SECRETARY: Ms Selloane Motloung By NATIONAL LOTTERIES BOARD Registered address: Block B, Hatfield Gardens BANKERS: Corner Hilda and Arcadia Streets Nedbank Hatfield First National Bank 0083 Rand Merchant Bank PRETORIA, South Africa Standard Bank ABSA Telephone: +27-12-432 1300 Fax: +27-12-432 1387 Info Centre: 08600 65383 Website: www.nlb.org.za All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, without the prior written consent of the National Lotteries Board. CONTENTS Page No List of abbreviations/acronyms...............................................................................................6 Minister’s Note to Parliament.................................................................................................7 Statement by the Minister.......................................................................................................8 Foreword by the Chairperson.................................................................................................12 Chief Executive Officer’s Report...........................................................................................15 Vision, Mission and Core Values............................................................................................20 Corporate Structure................................................................................................................21 The Board of the NLB.............................................................................................................23 Governance Report................................................................................................................26 Executive Committee.............................................................................................................44 Performance Reports.............................................................................................................46 Performance against Predetermined Objectives: 2012/13................................................47 Grant Funding....................................................................................................................50 Compliance........................................................................................................................58 Corporate Services............................................................................................................59 4 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 Financial Statements Page No Financial Statements of National Lotteries Board.................................................................. 68 Accounting Authority’s Report....................................................................................................................... 69 Report of the Auditor-General....................................................................................................................... 72 Statement of Financial Performance............................................................................................................. 76 Statement of Financial Position..................................................................................................................... 77 Statement of Changes in Net Assets............................................................................................................. 78 Cash Flow Statement................................................................................................................................... 79 Notes to the Annual Financial Statements..................................................................................................... 80 Financial Statements of National Lottery Distribution Trust Fund............................. 112 Report of the Auditor-General....................................................................................................................... 113 Statement of Financial Performance............................................................................................................. 116 Statement of Financial Position..................................................................................................................... 117 Statement of Changes in Net Assets............................................................................................................. 118 Cash Flow Statement.................................................................................................................................... 119 Notes to the Annual Financial Statements..................................................................................................... 120 Funds distributed by the NLDTF: 1 April 2012 - 31 March 2013....................................136 5 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 LIST OF ABBREVIATIONS/ACRONYMS AA Accounting Authority AFS Annual Financial Statements ACT The Lotteries Act (Act 57 of 1997) AGSA Auditor-General South Africa Board Board of Directors of the NLB CATHSSETA Culture, Arts,Tourism, Hospitality, Sport, Sector Education and Training Authority CEO Chief Executive Officer DA Distributing Agency the dti Department of Trade and Industry GRAP Generally Recognised Accounting Practice GRC Gambling Review Commission IPSAS International Public Sector Accounting Standards MTEF Medium Term Expenditure Framework NGO Non-governmental Organisation NLB National Lotteries Board NLDTF National Lottery Distribution Trust Fund PFMA Public Finance Management Act (Act 1 of 1999 as amended) RFP Request for Proposal SCA Supreme Court of Appeal SCM Supply Chain Management 6 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 Minister’s note to Parliament Dear Honourable Speaker, Annual Report of the National Lotteries Board for the year ended 31 March 2013. I have the honour, in terms of section 65 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), to present the Annual Report of the National Lotteries Board for the year ended 31 March 2013. Dr. Rob Davies, MP Minister of Trade and Industry 7 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 STATEMENT BY THE MINISTER Dr. Rob Davies, MP Minister of Trade and Industry 8 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 The vision of the Department of Trade Already, during the term of the current and Industry (the dti) is that of a dynamic administration, significant changes have taken industrial, globally competitive South African place in the running of the National Lottery. economy, characterised by inclusive growth One of the most significant changes have and development, decent employment and been the faster distribution of funds to a larger equity, built on the full potential of all citizens. number of beneficiaries. I also would like to see improved relations between the NLB Board The National Lotteries Board (NLB) is an and the distribution agencies and the initiatives agency of the dti and which forms part of the underway in this regard, enjoy my full support. broader dti family committed to this vision. Furthermore, the NLB has committed to The NLB regulates the lotteries area including ensuring greater alignment within the the distribution of lottery funds. distribution agencies, especially through ensuring that people with appropriate skills In 2009, the Gambling Review Commission and expertise get appointed to run their affairs was set up to assess, amongst others, the and eliminating any potential conflict of interest impact of legislation and executing agencies the dti will continue to diligently assist the Board such as the NLB. Several recommendations and staff implement these improvements, and for changes were made and the dti and carry out its mandate in as effective and efficient the NLB have begun implementing the key a manner as possible. recommendations. I wish to thank Prof. NA Nevhutanda and For instance, the process for the review of Mrs. TCC Mampane, chairperson and CEO the Lotteries Act is at an advanced stageand respectively of the NLB, for their stewardship will lead to further changes in the operations of this important agency during this important of the NLB. In this regard I am particularly period of change. pleased that in response to concerns raised by stakeholders certain changes will take Dr. Rob Davies MP place for process improvements, Minister of Trade and Industry 9 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 10 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 11 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 FOREWORD BY THE CHAIRPERSON Prof. NA Nevhutanda Chairperson – National Lotteries Board 12 NATIONAL LOTTERIES BOARD - ANNUAL REPORT 2012/13 The catalyst for social upliftment It is the late great Mahatma Gandhi who said, to worthy causes – the vehicles through which “There are people in the world so hungry that we materialise our vision to be “the catalyst for God cannot appear to them except in the form social upliftment.” of bread.” The year has been characterised, inter alia, It is political and governmental ideologies by active organisational development and founded on social and economic developmental strengthening for greater management and principles that constitute the bread whose life- delivery capacity. Our appointment of a new giving meaning is so profoundly and eloquently CEO and the review of our expectations articulated by Gandhi. In societies, such as apropos the constitution,
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