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Annual Report PART A General Informati on TM ANNUAL REPORT 2016/17 1 Annual Report of National Lotteries Commission 2016/17 TM © National Lotteries Commission Annual Report 2016/17 ISBN: 978-0-621-45535-9 Published by the National Lotteries Commission 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 Commission. Annual Report of National Lotteries Commission 2016/17 2 PART A General Informati on 3 Annual Report of National Lotteries Commission 2016/17 TABLE OF CONTENTS Annual Report of National Lotteries Commission 2016/17 4 PART A General Informati on PART A GENERAL INFORMATION...................................................8 1. General Information......................................................................................10 2. List of Abbreviations/Acronyms....................................................................11 3. Foreword by the Minister.......……………………….......................................13 4. Foreword by the Chairperson……………………….......................................15 5. Commissioner’s Overview………………....................................................…17 6. Statement of responsibility and con rmation of the accuracy of the annual report…...................................................................................20 7. Strategic Overview……………….............................................................…..22 8. Legislative Mandate..….................................................................................23 9. Organisational Structure……………...................................................………24 PART B PERFOMANCE INFORMATION...........................................30 Situational Analysis ………………......................................................................34 Strategic Outcome Oriented Goals ………........................................................36 Performance Information by Programme/Activity/Objective........................…..37 PART C GOVERNANCE...................................................................56 1. Introduction ……………………….......…..........................................……...…58 2. Portfolio Committees ………………......….....................................................58 3. Executive Authority .......................................................................................58 4. Company Secretariat………...…...….............................................................61 5. Compliance with Laws and Regulations………....….....................................66 6. Code of Ethics and Conduct.........................................................................68 7. Con ict of Interest………...............................................................……........69 8. Health, Safety and Environmental Issues ……………..……….......…...........70 9. Social Responsibility ….…………………………...........................................70 10. Board Audit & Risk Committee Report………….........................................72 5 Annual Report of National Lotteries Commission 2016/172017 PART D HUMAN CAPITAL MANAGEMENT................................... 84 Introduction………...........................................................…...............................86 Human Capital Oversight Statistics……….........................................................86 PART E FINANCIAL INFORMATION.............................................. 94 1. Consolidated Annual Financial Statements ………......................................95 2. Annual Financial Statements………...........................................................140 PART F LIST OF NLDTF PAYMENTS...........................................173 1. Bene ciary Payments………..................................................................... 174 Annual Report of National Lotteries Commission 2016/17 6 PART A General Informati on 7 Annual Report of National Lotteries Commission 2016/17 PART General Information Annual Report of National Lotteries Commission 2016/17 8 PART A General Informati on PART A GENERAL INFORMATION 10.................................................................................................General Informati on .1 11.....................................................................................List of Abbreviati ons/Acronyms .2 13...................................................................................................Foreword by the Minister .3 15...................................................................................................Foreword by the Chairperson .4 17...........................................................................................................Commissioner‘s Overview .5 20.......................Statement of Responsibility and Confi rmati on of the Accuracy of The Annual Report .6 22...............................................................................................................................Strategic Overview .7 23..................................................................................................................................Legislati ve Mandate .8 24...............................................................................................................................Organisati onal Structure .9 9 Annual Report of National Lotteries Commission 2016/172017 1. General Informati on Registered Name Nati onal Lott eries Commission Block D, Hatf ield Gardens 333 Grosvenor Street Hatf ield Registered Address Pretoria, 0083 South Africa PO Box 1556 Brooklyn Square Postal Address Pretoria 0075 Switchboard +27 12 432 1300 Contact Telephone Numbers Fax +27 12 432 1387 Info Centre 0860 065 383 E-mail Address [email protected] Website Address www.nlcsa.org.za External Auditors Auditor General SA ABSA First Nati onal Bank Bankers Informati on Nedbank Rand Merchant Bank Standard Bank Company Secretary Ms Nompumelelo Nene Annual Report of National Lotteries Commission 2016/17 10 PART A General Informati on 2. List of Abbreviati ons/Acronyms AA Accounti ng Authority ACT The Lott eries Act (Act No.57 of 1997) as amended AFS Annual Financial Statements AGSA Auditor-General South Africa Board Board of Directors of the NLC CATHSSETA Culture, Arts, Tourism, Hospitality, Sports, Sector Educati on and Training Authority COMMISSIONER Commissioner of the NLC DA Distributi ng Agency GRAP Generally Recognised Accounti ng Practi ce IPSAS Internati onal Public Sector Accounti ng Standards MTEF Medium Term Expenditure Framework NGO Non-governmental Organisati on NLC Nati onal Lott eries Commission NLDTF Nati onal Lott ery Distributi on Trust Fund PFMA Public Finance Management Act (Act No. 1 of 1999) as amended RFP Request for Proposal SCA Supreme Court of Appeal SCM Supply Chain Management the dti Department of Trade and Industry 11 Annual Report of National Lotteries Commission 2016/17 Annual Report of National Lotteries Commission 2016/17 12 PART A General Informati on Foreword by the Minister In 2016 Nati onal Lott eries Commission (NLC) initi ated an Impact study on illegal schemes which enabled the Lott ery Regulator to create a compendium of these schemes, outline their modus operandi, and determine the extent of contraventi on and Impact. This research will also enable the NLC to repositi on its regulatory strategies, strengthen regulatory compliance initi ati ves and serve as a base to inform and initi ate policy changes to minimize the impact. Some momentum has been achieved in the regulatory enforcement on illegal Lott eries; the NLC has successful collaborati ons with Law Enforcement Agencies shutti ng down several illegal Lott ery operati ons. The NLC also managed to stop a number of unlawful competi ti ons. The Lott eries Act, specifi es that Distributi ng Agencies must be appointed as the mechanism through which the Nati onal Lott eries Distributi on Trust Fund (NLDTF) adjudicates grant applicati ons. I am therefore happy to announce that as part of the implementati on of the Act, Distributi ng Agencies in the Arts, Culture & Heritage sector have appointed full-ti me employees, with the mandate of allocati ng funds fairly and equitably to all applicants who meet prescribed requirements. The Chariti es as well as Sports and Recreati on sectors appointments will be fi nalised in 2017. I am also pleased by the consistent good performance of the NLC and its fi nancial management and encourage maintenance of this consistency. ...................................................... Dr Rob Davies, MP Minister of Trade and Industry 13 Annual Report of National Lotteries Commission 2016/17 Annual Report of National Lotteries Commission 2016/17 14 PART A General Informati on Foreword by Chairperson The NLC applies a risk-based approach in fulfi lling Development Plan (NDP) goals on eliminati on of its mandate of monitoring, regulati ng and policing inequaliti es and poverty alleviati on. lott eries. It has emerged, through risk assessment The amended legislati on makes provision for proacti ve processes, that illegal lott eries remain a main threat funding which can emanate from three sources, the to the revenue and existence of the Nati onal Lott ery. Minister, the Board or the NLC. The NLC proacti vely The NLC therefore conti nues to positi on itself as a funded projects such as the rebuilt Vhafamadi Regulator of the Nati onal Lott ery and other Lott eries. Secondary School in Limpopo, Sediti hostels in the Encouraging responsible gaming and Protecti ng Free State, rehabilitati on centres, sporti ng faciliti es lott ery parti
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