PERFORMANCE AGAINST THE ANNUAL PERFORMANCE PLAN

Performance information is important for effective management, including planning, budgeting, implementation, reporting, monitoring and evaluation. The matrix below outlines the performance indicators and targets that the NLC identified to achieve in the 2017/18 financial year. These performance indicators and targets are aligned across the NLC’s annual plans, budgets, in-year and annual report.

The NLC achieved 100% performance against its predetermined objectives and targets therefore no corrective actions were identified.

Strategic objectives, outputs, performance indicators, planned targets and actual achievements

Strategic output

Performance measure
or indicator

Annual target

Baseline
(Actual Target
Achieved
2016/17)

Achievement

Knowledge management

1.1

Develop a knowledge
hub

Development of a knowledge hub

Alignment of
knowledge
management
strategy

ACHIEVED

The knowledge hub was developed.

The target emanates from the 2015 National Consultative Indaba where beneficiaries requested that the NLC “Establish
a knowledge hub/website to facilitate connection among beneficiaries, and to enable sharing of services within the network.

Education and awareness

1.2

Number of
stakeholder
engagements
conducted per
province

Eight stakeholder engagements
per province

Six stakeholder engagements
per province

ACHIEVED

182 stakeholder engagements conducted.

The stakeholder engagements relate to the area of education and awareness, capacity building as well
as stakeholder management.

Education and awareness is a key area in the amended Lotteries Act.

The engagements cover, inter alia, matters relating to:

Regulatory compliance (increasing awareness of society and other lotteries, enhancing monitoring and evaluation)
Capacity building
Governance and compliance
Post Indaba Stakeholder Engagements (PISE)
Applying for funding
Monitoring and evaluation/ completing progress reports

E-system (Integrated
enterprise wide
architecture platform)

1.3

Integration of the
E-system (Enterprise
wide architecture
platform)

Integration of E-system with
identified SOE’s and national
departments

Developed
Phase 2
of the E-
system/
integrated
enterprise
wide architecture
platform

ACHIEVED

1.	Companies and Intellectual Property Commission (CIPC), to conduct verification on Beneficiaries and Private Companies conduc ting business with the NLC.
2.	Department of Social Development (DSD) to conduct verification on Beneficiaries.

This target is a follow on from Phases 1 (Core Fusion) and 2 (GMS) of Project Dibanisa, NLC’s ERP System.
The integration is intended to streamline the verification of information with relevant key government departments and SOE’s thereby improving turnaround times and increasing efficiency within the organisation.

Corporate Governance

1.4

Number of
organisation-wide
ethical behaviour
interventions per
quarter

One organisational intervention
per quarter

Approved ethics
strategy

ACHIEVED

One intervention per quarter was implemented.

NLC views ethical practices in a very serious light. Integrity remains a key value within the organisation.
This target aims to reinforce a culture of ethical behaviour within the organisation.
Training and awareness is created through workshops with staff.

NLDTF disbursements

2.1

Percentage
disbursement
of grants as per GNR644, 6(c)(iv)

At least 65% of grants be
paid in line
with the regulated 60-day timeframe

65%
disbursement of
grants

ACHIEVED

66% of grants were disbursed.

This target aims to ensure timeous payment of grants to beneficiaries once all legal conditions have been fulfilled. It stems from Regulation (GNR644) which stipulates that payment must be effected within 60 days of receipt of a compliant grant agreement.

NLDTF investments

2.3

Percentage return
on investments
(ROI) of
NLDTF funds

An annual minimum of 8%
ROI on
NLDTF funds

8% return on
investments

ACHIEVED

8.40% ROI

This is the percentage of average return on investments on NLDTF funds in an effort to ensure sustainability of the organisation and to maximise funding available to good causes by generating alternate streams of revenue for NLC operating costs. The NLDTF Investment Strategy is key to understanding the indicator.

Provincial procurement

2.4

Percentage
of localised
procurement

90% localisation of procurement
for provincial offices

80% localisation of procurement
for provincial offices

ACHIEVED

99% localised provincial procurement.

This measures the percentage of goods and services procured by the provincial offices in order to stimulate growth of local businesses of the region in which the provincial offices operate. It is also important as it ensures Compliance with government priorities e.g The Broad-based Black Economic Empowerment Act, 2003 (No. 53 of 2003) (B-BBEE), Local Procurement and Skills Transfer.

Illegal lotteries

3.1

Percentage
investigations on reported and
identified illegal
lotteries

Conduct investigations on 85% of
all identified and reported illegal
lotteries

75% of investigations conducted

ACHIEVED

96% of identified and reported illegal lotteries investigated.

Illegal lotteries contravene the provisions of the Act and its applicable regulations and related statutes. The matter of illegal lotteries has a direct bearing on an enabling environment for the National Lottery in that it affects the revenue generated from ticket sales. Illegal schemes continue to create significant competition for the National Lottery and further create confusion to lottery players.

Illegal lotteries are identified through:

1.	Scanning of print and electronic media
2.	Reported cases by members of the public

3.2

Feasibility study
on regulation
of illegal
lotteries

Conduct a feasibility study to
determine the regulation of illegal
lotteries

Research on illegal lotteries
conducted

ACHIEVED

Feasibility study conducted and the final report tabled and approved by Board.

In 2016, a study was conducted to determine the “Impact and Extent of Illegal Lotteries to the National Lottery in South Africa”.

This target is a follow-on from the research that was conducted in order to provide direction to the NLC in terms of regulating illegal lotteries.

Third Lottery Licence

3.3

Implement and
monitor third National
Lottery Licence Monitoring Matrix/ Scorecard

Implement and monitor
compliance
with the licence
conditions

Implement and monitor compliance
with the licence conditions

ACHIEVED

Compliance by the operator with licence conditions implemented.

The National Lottery operator is monitored against licence conditions in this target.

Regulation 3A(1)(a)

4.1

Percentage of
applications
adjudicated within
150 days

75% of applications adjudicated
within 150 days

50% of applications adjudicated
within 150 days

ACHIEVED

81% of applications were adjudicated within the legislated 150 days.

Regulation 3A. (1) reads as follows:

In assessing an application for a grant in accordance with Regulation (3)(b), a Distribution Agency must:

(a)

finalise its adjudication within hundred and fifty (150) calendar days from the date of receipt of the application.

The regulation grants the NLC a period of 150 calendar days to finalise adjudication of an application. The time of measurement commences on the date of submission of the application for funding.

Lotteries Act – 5% per province (GNR182)

4.2

Percentage allocation
of grant funding to
provinces

A minimum of 5% grant funding
allocated to each province

ACHIEVED

8.40% ROI	EC – 11%	EC – 11%
FS – 8%	GP – 30%	KZN – 12%
LP – 10%	MP – 8%	NC – 6%
NW – 8%	WC – 8%

GNR 182 regulation states:

“Any agency shall for the purposes of section 32(1)(b) of the Act in considering grant applications ensure that not less than five percent of the total amount at the disposal of the agency for grants, shall in any financial year of the board be allocated for distribution in respect of every province of the Republic.”

The importance of this target is that it ensures fair and equitable distribution of funds.

Monitoring and evaluation of NLDTF funding

4.3

Number of monitoring
and evaluation site visits conducted

Conduct 2 000 monitoring and
evaluation site visits

1 500 monitoring and evaluation
site visits

ACHIEVED

2 333 site visits conducted (Q1-Q4)

NLC has strengthened its monitoring and evaluation systems to enabling the organisation to better measure the impact of funding.

The M&E division will in the year implement monitoring and evaluation visits by conducting 2 000 site visits to beneficiaries as per the framework.

4.4

Number of provincial
impact evaluation
studies

Conduct impact evaluation study
in five provinces

1 500 monitoring and evaluation
site visits

ACHIEVED

The evaluation study was conducted.

One of key roles of the National Lotteries Commission (NLC) is its funding of non-profit organisations that play a role in the development of society through various initiatives. The impact evaluation study focused on funded projects between the period 2012 – 2016 to assess the changes that have been brought about in the lives of the individuals and communities.

Linking performance with budgets

: To enhance administration, ensure compliance with applicable legislation and policy prescripts

Name of sub- programme	Final appropriation R’000	Actual expenditure R’000	(Over)/Under expenditure R’000	Reason for variance
Knowledge management	2 500	2 500	–
Education and awareness	1 866	979	887	The provinces were responsible with conducting the education and awareness workshops and as a result the budget that was set aside by Business Development division was not utilised.
E–system (Integrated enterprise- wide architecture platform)	36 109	30 675	5 434	A payment relating to software cost that was procured during the 2017/18 year and paid in the current year was erroneously budgeted for under this item.
Corporate governance	111	111	–
Total	40 586	34 265	6 321

: To ensure financial sustainability, control and discipline in line with applicable legislation and policy prescripts

Name of sub- programme	Final appropriation R’000	Actual expenditure R’000	(Over)/Under expenditure R’000	Reason for variance
NLDTF disbursements	2 073 514	2 073 514	–
NLDTF investments	–	–	–
Provincial procurement	16 475	10 314	6 161	Facilities was responsible for payment of security and hygiene services for provinces during this financial year and that resulted in provinces not spending the budget for security service, this responsibility has, however, been taken to provinces going forward. The provinces did not have their planned functional strategy sessions and they plan to have them at the beginning of quarter one of 2018/19 financial year. Provinces found ways to save costs by using municipal halls and schools for their educational and awareness workshops and also stopped providing catering for workshops.
Total	2 089 989	2 083 828	6 161

: To implement relevant initiatives geared towards ensuring compliance with the Act

Name of sub- programme	Final appropriation R’000	Actual expenditure R’000	(Over)/Under expenditure R’000	Reason for variance
Name of sub- programme	Final appropriation R’000	Actual expenditure R’000	(Over)/Under expenditure R’000	Reason for variance
Illegal lotteries	2 299	1 177	1 122
3rd lottery licence	493	493	–	Due to the delays when conducting the feasibility study, the development of the society model was placed on hold.
Total	2 792	1 670	1 122

: To ensure fair and equitable grant allocations

Name of sub- programme	Final appropriation R’000	Actual expenditure R’000	(Over)/Under expenditure R’000	Reason for variance
Name of sub- programme	Final appropriation R’000	Actual expenditure R’000	(Over)/Under expenditure R’000	Reason for variance
Regulation 3A(1)(a)	–	–	–
Lotteries Act – 5% per province (GNR182)	1 441 564	1 494 013	52 449
Monitoring and evaluation of NLDTF funding	–	–	–	The Charities Sector allocated funds for few proactive projects and was also clearing applications from 2015 call of application.
Total	1 441 564	1 494 013	52 449