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Annual Report Annual Report Annual Report of National Lotteries Board ///2014/2015 annualannual reportreport 20 1 Part A : General Information 2 Annual Report of National Lotteries Board ///2014/2015 © NATIONAL LOTTERIES BOARD ANNUAL REPORT 2014/15 ISBN 978-0-620-65970-3 Published by the National Lotteries Board Registered address: Block D, Hatfield Gardens Corner Hilda and Arcadia Streets Hatfield 0083 PRETORIA, South Africa Telephone: +27-12-432 1300 Fax: +27-12-432 1387 Info Centre: 08600 65383 Website: www.nlb.org.za AUDITORS Auditor-General SA COMPANY SECRETARY Ms Selloane Motloung BANKERS Nedbank First National Bank Rand Merchant Bank Standard Bank ABSA 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. 3 Part A : General Information 4 Annual Report of National Lotteries Board ///2014/2015 The National Lotteries Board was established under the Lotteries Act (No 57 of 1997), and opened its doors in 1999 to regulate lotteries and sports pools and distribute a portion of funds from the National Lottery to good causes. Due to developments in legislation and in response to the needs of the nation, a process of review took place. In February 2012 the National Lotteries Board confirmed that a review of the Lotteries Act was underway. In April 2013, the Draft Lotteries Act Amendment Bill was approved by Cabinet. Cabinet also approved the final recommendations of the lotteries policy at the same time. InMay 2013, the Bill was published for public comment. October 2013 saw the bill being passed by Parliament and sent for assent, and the national assembly passed the bill in November 2013. The Lotteries Amendment Bill was signed into law by President Zuma in December 2013, leading up to the proclamation of the Lotteries Amendment Act (No 32 of 2013)in February 2015. In April 2015, the amendments to the regulations of the Act were gazetted. The National Lotteries Commission was launched in June 2015. 5 Part A : General Information 6 Annual Report of National Lotteries Board ///2014/2015 TABLE OF CONTENTS 8 Part A 10 General Information 11 List of Abbreviations 13 Introduction 14 Foreword 16 Overview 20 Strategic Overview 21 Legislative Mandate 25 The Board of The NLB 26 PART B 31 Executive Committee 32 Performance Information 48 PART C 50 Governance Report 68 PART D 71 Human Resources Management 76 PART E 78 Financial Statements 156 PART F 7 158 Beneficiary Payments Part A : General Information General informationA 8 Annual Report of National Lotteries Board ///2014/2015 PART A 10. Public entity‘s general information 11. List of Abbreviations /Acronyms 13. Introduction by the Minister 14. Foreword by the Chairperson 16. Chief Executive Officer‘s Overview 18. Statement of responsibility and confirmation of the accuracy of the annual report 20. Strategic Overview 21. Legislative and Other Mandates 23. Organisational Structure 9 Part A : General Information General information REGISTERED NAME NATIONAL LOTTERIES BOARD Registered Address Block D Hatfield Gardens Corner Hilda and Arcadia Streets Hatfield 0083 Pretoria, South Africa Postal Address PO Box 1556 Brooklyn Square Pretoria 0075 Contact Telephone Numbers Switchboard +27 12 432 1300 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 Bankers Information ABSA First National Bank Nedbank Rand Merchant Bank Standard Bank Company Secretary Ms Selloane Motloung Company Secretary 10 Annual Report of National Lotteries Board ///2014/2015 list of abbreviations/ acronyms AA Accounting Authority AFS Annual Financial Statements ACT The Lotteries Act (Act No 57 of 1999) AGSA Auditor-General of South Africa Board Board of Directors of the NLB CATHSSETA Culture, Arts, Tourism, Hospitality, Sports, Sector Education and Training Authority CEO Chief Executive Officer DA Distributing Agency the dti Department of Trade and Industry GRAP Generally Recognised Accounting Practice ICT Information and Communication Technology IPSAS International Public Sector Accounting Standards M & E Monitoring and Evaluation MTEF Medium Term Expenditure Framework NDP National Development Plan NGO Non-governmental Organisation NLB National Lotteries Board NLDTF National Lottery Distribution Trust Fund PFMA Public Finance Management Act (Act No 1 of 1999 as amended) RFP Request for Proposal SCM Supply Chain Management 11 Part A : General Information INTRODUCTION 12 Annual Report of National Lotteries Board ///2014/2015 BY THE MINISTER he National Lotteries Board (NLB) was established to regulate lotteries, sports pools and smaller competitions. The third lottery licence has been issued, and the National Lottery is well into its 16th year. During the period under review, the NLB has remained steadfast in achieving its strategic objectives and T working toward improved sustainability and compliance of beneficiaries. The amended Lotteries Act came into effect in April 2015, and the benefits that will come from the evolution of the NLB into the National Lotteries Commission (NLC) will see the organisation maintain its position as a pioneer in the grant funding sector as access to funding for good causes increases. I am pleased to have observed how the organisation has taken an honest internal review of what has worked, and what could work better in order to make the necessary improvements . Dr Rob Davies, MP Minister of Trade and Industry 13 Part A : General Information Foreword by the Chairperson ndings and Beginnings. This, some may say are some of the constants of life. This year has been marked by preparations for endings and beginnings for the NLB. However, unlike the usual life events that one may ordinarily think of, ours have been in anticipation of exciting changes that will see E the NLB having even greater impact as the National Lotteries Commission. As the NLB geared itself for transition and growth, we also ensured that we delivered on our mandate in the execution of our strategic objectives. The Board placed high emphasis on partnerships during this period. These have been an inherent part of who we are as our founding Act has rooted the success of our operations on collaborations with the Departments of Arts & Culture, Sport & Recreation and Social Development. As an extension of these, we ensure cohesion with all spheres of government in order to ensure that our work reaches all corners of this beautiful land. We are also grateful for the cooperation of the second National Lottery operator Gidani in collecting revenue aimed at uplifting lives. 14 Annual Report of National Lotteries Board ///2014/2015 Three calls for funding applications were made during this period. The calls were targeted in line with our priorities and those of government, specifically to Sports Clubs and No-Fee Schools, Early Childhood Development, and Sport Federations. From these calls, over 12300 applications were received, indicating the volume of need in our society. Sadly, during this same period we bade farewell to Mr Eddie Makue, our Distributing Agency member who was called to focus on other responsibilities in Parliament. We also said a final farewell to the committed Mr Abel Moloabi, who passed away shortly after the announcement of the call for applications in the Sports Sector in September 2014. As we march on to our new beginning as the NLC, our values remain intact. Former United States Ambassador to the United States, the late Adlai Stevenson is quoted as saying ‘a hungry man is not a free man’. We live with the awareness that acquiring our nation’s freedom is a journey, and one that we have to work in earnest to achieve through the protection of basic human rights through the distribution of grants. Rights to dignity, education, health care, food, water and social security, language, arts and culture, among others. This new beginning signals a coming-of-age for us that we see us aim higher in our contribution towards eliminating poverty and reducing inequalities. As our democracy matures 21 years on, we remain committed to achieving the promise of a free South Africa and work to make certain that all who live in this land do not go hungry and are free indeed. We also remain steadfast in our duty to protect the public through compliance enforcement, monitoring and evaluation, and the continued fight against fraud and corruption. And in that same breath, we are grateful to members of the public that tirelessly alert us of these issues through the established channels. We are also grateful for the cooperation of the second National Lottery operator Gidani in collecting revenue aimed at uplifting the lives of millions of South Africans. It is also common cause that since December 2014, there has been a court challenge relating to the issuing of the 3rd Lottery Licence respectively. The matter is yet to be finalised and the Board will continually update the public and all stakeholders regarding all developments around the issue. It is important to note however, that the lottery game will in the meantime continue whilst these challenges are being addressed. The support of our administrative home, the Department of Trade and Industry has been a guiding light as we navigated this important year of change, and our gratitude and respect for our Minister, the honourable Dr Rob Davies and his team at the dti is unwavering. I take my hat off to the Board, management and staff of the NLB for 16 years of dedication to good causes, and it is with a sense of great anticipation that we face the opportunities to affect more lives for the better. Prof N A Nevhutanda Chairperson National Lotteries Board 15 Part A : General Information Chief Executive Officer’s Overview ast year, the NLB marked 15 years of social impact and with renewed energy, undertook a review of how far reaching that impact was, and how it was that we could go even further.
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