Mvula Trust Annual Report 2013 - 2014

Continuing Growing Values

2014 Continuing

Annual Growing Report Values

Reporting Period: 2013 - 2014

A leading developmental NGO

Foreword by the Chairperson

Value for strong foundation

1. GENERAL INFORMATION

Contents

Value through partnership 4. HUMAN RESOURCES MANAGEMENT

reporting paraMeters The reporting period for this Annual Report is the 12 months ending 30 June

Value through people

5. ANNUAL FINANCIAL STATEMENTS

following email address: info@themvulatrust.org.za

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the Mvula trust annual report 2014

FOREWORD BY THE CHAIRPERSON Water and Sanitation remains the central backdrop and heart of conversation amongst world leaders and most Millennium Development Goals which state that all citizens of the world must have access to minimum basic Water and is gaining substantial ground and remains as crucial today

Water availability is a function of factors such as topography, vegetation, climate, policy concerning the management of water supplies and food production practices, as well as distribution. Distribution of water in many Sub-Saharan countries is an immense problem because without proper facilities, water may be useless to humans and ecosystems.

Sewage treatment facilities are inadequate, non-functional, or simply non-existent in parts of South Africa. A great

The focus of government on rural development has seen an increase in the number of households connected to Water and Sanitation. South Africa’s policy focus on rural development has therefore supported the activities and continued growth of the operations of The Mvula Trust.

During the period under review, the Board appointed two new Trustees of The Mvula Trust, namely, Mr. Michael Marler and Mr. Franklin Dikgale. They have specialist expertise

which is being driven by our country towards penetrating the Water and Sanitation challenges faced in Africa.

water bodies untreated and this is why contaminated water becomes the only source of water for many communities.

Governance and Compliance.

was conveyed and acknowledged, which stated that there

government should include the provision of information, incentives, as well as the business environment in order to facilitate positive changes.

of the Trust, Mr. Silas Mbedzi, has steered the organisation

equitable access to Water and Sanitation in Africa.

and awareness with governments from around the continent has resulted in African countries reporting major political commitments to Water and Sanitation provision, increment of funding allocations, as well as leadership coordination in relation to Water and Sanitation activities as reported in

These commitments increased funding allocations and leadership coordination remained realised in our own

mentioned amongst others the following three that are catalysts in our predictions:

the traditional supply-orientated mind set towards one of water conservation and demand management is critical for the sustainability of water resources and the environment, Water demand management is, however, still not an intrinsic part of water resources planning and management at the national and regional levels in Southern Africa. The trend in South Africa towards decentralising water management to catchment level and the involvement of stakeholders at

governance processes. My sincere thank you is a humble gesture of support towards the major improvements ensured by Mr. Silas Mbedzi. The Board thanks all senior communities and The Mvula Trust. Finally, the Board of Trustees acknowledges all our stakeholders, including donor organisations, partners in the development sector and all government departments for their continued commitment and support of The Mvula Trust.

This is a great step towards ensuring that policies can be implemented with the support and co-operation of the people who actually use the water, and can give the building should continuously be done in order to ensure a general change in attitude and awareness of the value of water. This requires education and awareness campaigns

1. The revitalising of mines by creating an inter-Ministerial

the foCus of goVernMent on rural deVelopMent has seen an inCrease in the nuMber of households ConneCted to water and sanitation.

Communities by involving the Water and Sanitation Minister.

initiatives such as working for water, working on wetland and others.

Water and Sanitation.

business and government. That partnership is however not as strong, given the immense challenges faced by South Africa.

to join hands with government and private sector partners in the provision of basic Water and Sanitation services.

We are celebrating 21 years in business since the establishment of The Mvula Trust by non-governmental

on infrastructure development and several projects are to years, The Mvula Trust has grown from a grant-making have all thus in turn increased commitment, funding and leadership coordination in relation to Water and Sanitation services to millions of rural dwellers across South Africa.

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OVERVIEW BY THE CHIEF EXECUTIVE OFFICER just a year earlier. With this upsurge, the company had to my appreciation for another successful year of Collective thinking, more discipline, more work, and more ‘back to

Sanitation projects across South Africa.

new Chairperson of the Board Mr. Ashivhanga Tshibududze.

As The Mvula Trust celebrates 21 years of Collective Action

we haVe ConCeded the torCh, we haVe kept the Vision and we haVe stood the test.

business tsunami as a form of the a great recession across new dynamic subtle transition which will see the introduction of our new website. This will all be introduced during the and continues to be exhilarating for us here at The Mvula

services that our entire teams, both those who are formal and informal, have invested throughout the year and please allow me to say you are continually and deeply esteemed.

This year, has been a momentous year for me personally and for us here at TMT. As South Africa celebrated, roared,

you our highlights in inforgraphics.

Mvula Trust stood tall. We unobtrusively stood and stand because of the support and livelihood of those partners and stakeholders who have been nurtured to the well-founded undertakings of the organisation’s vision and the impact of community development that we have kept advancing

Today, we celebrate 21 years old and we are undeniably pioneering a new way forward as community developmental

we here at TMT were also celebrating a vigorous 21 years

opportunity to sit back and take stock of our 21 years of swiftly moving alongside the business tidal drills as we have stirred and steered TMT to this business waterfront marina. We have conceded the torch, kept the vision and stood the test. We look forward to another 21 years of

our community-based projects.

10 water projects 9 Free State 1 Limpopo

C

in 18 municipalities

39 387 house hold sanitation units supplemented

implemented

Further to this, during the year under review, the Board appointed two new Trustees of The Mvula Trust, namely, Mr. Michael Marler and Mr. Franklin Dikgale who have

developments.

Amending Trust Deed of The Mvula Trust was adopted by the Board and subsequently lodged with the Master of our milestones in successions. We have come a long way. We have come to appreciate the anticyclones and the depressions of business. Both political and business at times taking us laterally along, but we have kept

The Board of Trustees of The Mvula Trust displayed ethical leadership by approving the Code of Conduct and Ethics for the Board which every Trustee has signed. At every meeting of the Board or the Board subcommittees, Trustees are required,

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undertakings.

When one recollects and attempts to do a mental calculation of the total amount of projects engaged by The Mvula Trust

community Water and Sanitation projects. Within 12 months, community Water and Sanitation projects, upping our intake

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This, to me, showcases the journey which we have travelled and travailed and the journey that we are yet to undertake.

Above all that we have done and continue to do, we here at The Mvula Trust have kept on believing in our vision and mission. We will continue to steer the ship to improve the health and welfare of poor and disadvantaged South Africans in rural and peri-urban communities by increasing their access to safe and sustainable Water and Sanitation.

854 sMMe's

12518 jobs were created

the ula trust annual report 2014 theMv Mvula

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general

information

www.themvulatrust.org.za

A leading developmental NGO

1.1 Mission/ Vision / Values /Strategic Objective

Vision The Mvula Trust’s vision is a statement of our highest aspirations. It sets out what The Mvula Trust wishes to accomplish through its activities:

The Mvula Trust is the leading development institution in South Africa, in

Mission

Strategic Objectives

key stakeholders, while again focussing attention on why The Mvula Trust exists: To improve the health and livelihoods of poor and disadvantaged

services, while ensuring people’s voices are heard.

Values relationships with stakeholders, as well as the allocation of resources. It guides the priorities of The Mvula Trust and the delivery of services: Transparency Community-Orientation Empowerment and Participation Cooperation and Teamwork

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Organisational Performance Incorporation History

The Mvula Trust believes that organisational performance is a comprehensive and integrated process, meant to provide an overall understanding of the organisation as a balanced

The Mvula Trust was incorporated as a non- governmental

communities for the creation of community water schemes.

The Mvula Trust: Key Strategic Objectives: Objective 1: Government Support Supporting government, especially The Department of

for water, sanitation and related services. Despite legislative for community water schemes in rural areas. The founding vehicle for supporting the work of the new democratic government in dealing with the disparities faced by South Africa at the time.

and Sanitation services in schools with a view of enhancing learning and education.

Objective 2: Local Government Support To support local government in the delivery of sustainable,

1.2 Legislative Environment

thereby providing support to national, provincial and local government programmes.

Sanitation, when cumulatively measuring annual turnover, number of projects and activities, as well as years of existence.

The Mvula Trust to make lending facilities available to

The Mvula Trust is a Trust registered in terms of the Trust particularly in poor, rural, peri-urban and informal settlements.

Objective 3: Development of Policies and Practices To contribute to the development of new and improved policies and practices in water supply, sanitation and related sectors that empowers communities and promotes sustainable livelihoods.

Objective 4: Promotion and Strengthening of Role of Civil Society To promote and strengthen the role of civil society in development, so that communities are actively involved in managing their own development, articulating their views and holding service providers accountable.

Company Characteristics

interest organisation.

Accountability and Reporting to The Mvula Trust Board of Trustees and all sub- committees that the Board of Trustees may establish. The Mvula Trust reports on its activities and the performance of its operations through accountability instruments including The Mvula Trust

Objective 5: Promotion of Knowledge Sharing, Advocacy, Training, Monitoring and Evaluation To promote knowledge sharing, advocacy, training, monitoring and evaluation.

Braamfontein Centre

Email: Website:

info@themvulatrust.org.za www.themvulatrust.org.za

of The Mvula Trust The Mvula Trust.

governance processes.

Geographic Spread

all provinces of South Africa.

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Approach to Development The mission of The Mvula Trust is to provide Water and Sanitation related services to poor and rural communities.

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previously disadvantaged communities with a range of backgrounds, including rural women, the elderly, disabled and the youth.

Sustainability Model

organisation that encompasses itself in supporting and collaborating with other civil society organisations in support of continuously building a democratic South Africa, The Mvula Trust has expanded its sources of income in order to fund all its activities. Consequently, it sources funds from philanthropic sources for certain programmes, while concomitantly engaging the skills of The Mvula Trust for actual services delivery activities. The adaptability of The Mvula Trust is a scholarly experience for the sustainability

The Mvula Trust’s objective and method is to work with government and civil ` society partners in building community capacity and social infrastructure.

Community knowledge, capacity and expertise are combined with local government’s developmental mandate to ensure sustainable, peoplecentered development. Since inception, here at The Mvula Trust we have

Community construction and project implementation Community facilitation

support Multi- disciplinary projects

of rural development, and have played a pioneering role in developing and testing the model in thousands of projects throughout South Africa.

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Budgeting and Cost Accounting

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Training

Through the “CBO management model” emphasis is placed on practical, hands-on training of CBO members who are mentored. The Mvula Trust provides remedial training where deemed necessary, based on continuous

and sustainability. This approach maximises local economic development

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Workshop facilitation Facilitating citizens’ dialogue

Training and Capacity building A wide range of services are provided around the following sectors: Sanitation Water Social Cohesion and Community Facilitation Disaster Management Community Construction, Operations Maintenance Training and Capacity Building

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Feasibility studies

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establishment Training and capacity building

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Services -

Development of community business plans Operations and Maintenance Training SMME development

Value through partnership

Value through people the Mvula trust annual report 2014

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leadership and

goVernanCe

www.themvulatrust.org.za

A leading developmental NGO

2.1 Legal Status Responsibilities of the Board The Fourth Amending Trust Deed of The Mvula Trust mandates the Board of Trustees to manage and undertake developmental projects and initiatives in order to enable the poor and marginalised communities in South Africa to achieve the progressive realisation of their human rights to reasonable access to water services, health care and an environment not harmful to their health and environment, with reference to: The improvement of community health and living standards, through the establishment and upgrading of Water and Sanitation facilities, through associated health education and other public health initiatives, and

The Board of Trustees adhere to the provisions and responsibilities as set out in the Trust Deed, as well as the Board Charter. Trustees duties include among others:

Chairperson

Executing fiduciary duties in a bona fide, diligent, responsible and skilled manner.

Overseeing the approval of the strategy of the organisation on various policies.

Approval of annual budgets, operational business

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The Board of Trustees approve the strategy and business plans of The Mvula Trust in the interest of risk aversion and sustainability.

FRANKLIN DIKGALE Board of Trustees

The optimal use and conservation of water for domestic

and related activities, with a view to promoting the main purpose of the Trust, and identifying and promoting

Such other activities, initiatives, projects and programmes as may be perceived as reasonable and conducive to the achievement of the main purpose of the Trust.

The Trust Deed furthermore commits The Mvula Trust to the objective of the betterment of society in its chosen areas of activity, making it accountable to the public.

2.2 Board of Trustees structure and composition mandate in a manner that is consistent with best corporate governance practices, taking into account the four pillars of governance which are accountability, responsibility, fairness and transparency.

The legislative responsibilities of Trustees are set out in

The Board of Trustees provide strategic direction and ethical leadership to the Trust. The Board applies a unitary board structure with the majority of Trustees being non-executive directors. The Board comprises of three non-executive directors and two executive directors. The Trustees possess a wide range of skills, knowledge and experience to meet the strategic objectives of the Trust. All non-executive directors of the Board are appointed for an initial period of are prohibited from serving as non-executive directors for a period of more than nine years. All non-executive directors do not draw any remuneration other than the Board fees.

MICHAEL MARLER Board of Trustees

Board of Trustees

to ensure that the Board and Management implements good corporate governance practices, Ms Bernadetta Tabane was appointed as the Company Secretary of the

Board of Trustees

Charter of the Trust.

The Board Charter regulates the powers and responsibilities of Trustees, as well as matters delegated to sub-committees of the Board, whereas the delegation of authority framework and Management.

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The Human Resources and Remuneration Committee

Values for

strong foundation 2.3 Board subcommittees

Contribute to the balanced scorecard of the organisation and ensure that employee agreements contribute to Oversee the development and implementation of The Mvula Trust’s remuneration policy, including

The committee is responsible for providing oversight on all human resources related matters within The Mvula Trust.

The committee’s primary responsibilities are set out in it’s terms of reference as follows:

certain functions to in order to assist it in discharging its

Oversee the implementation of change management initiatives.

evaluation of management’s comments issued by the external auditors. While the internal audit function has been

Make recommendations concerning the remuneration policies and practices for executive, senior management

registered accountants and auditors co-ordinated by the CFO, The Mvula Trust’s independent external auditors do not assist in the performance of any internal audit assignments.

Make recommendations on human resources policies

Made recommendations to the Board on the approval

Ensure the development and implementation of succession planning, management and leadership

Made recommendations concerning the remuneration policies and practices for executive, senior management

its responsibilities as articulated in the terms of reference of the Committee as well as its statutory duties as outlined

Oversee the development of performance indices

Assisted the Board in the recruitment of new Trustees.

Made inputs to the approval of reports to the Board.

oversees all personnel-related matters, as well as the remuneration of employees. These are constituted in terms to the required standards.

provides a forum through which recommendations to the Board of Trustees are made on policy, quantum, structure and composition of remuneration packages of senior

its mandate as derived from the Trust Deed:

Oversee the development and implementation of

The Finance, Audit and Risk Committee

which are reviewed by the Committee and approved by the Board on an annual basis in line with good corporate

explanations provided by management and discussions held with the external auditors on the results of the audit, the committee concluded and advised the Board that it has no reason to believe that there were any material

have not been addressed or are in a process of being addressed. The committee did not receive any concerns or complaints relating to the accounting practices and

controls of The Mvula Trust or any other related matter during the period under review.

reviewing the work performed by the external auditors as

and internal auditors are appointed and through which appointment and assessment of performance of internal

principles, policies and practices adopted in the preparation

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Board Meetings and Subcommittee Meetings

2.8 Breach of Governance Procedures

The Board and subcommittees meet quarterly and the Trustees attended the following Board and subcommittee meetings during the reporting period.

legislation and to enable the Trustees to discharge their approved by the Board and the Board Charter will be

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The Board continuously monitors compliance to the Trust

regulatory prescripts applicable to The Mvula Trust.

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Party Transactions The remuneration of all trustees can be found as part of

developed a compliance register that outlines all pieces of statutory and regulatory prescripts applicable to The Mvula Trust which is monitored and updated on a regular

2.9 Stakeholder Value Creation

assessment will be evaluated on an annual basis in line with good practice.

during Board or subcommittee meetings.

A stakeholder engagement strategy is necessary to ensure that The Mvula Trust understands a wide range of interests

Mr. Michael Marler

Employees of The Mvula Trust are also required to complete

the Stakeholder Management Strategy will be approved by

2.6 Code of Ethics and Conduct

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The risk management policy and risk management plan risks facing The Mvula Trust are adequately managed and that assurances activities are integrated and coordinated in

Trustees of The Mvula Trust are required to disclose their

appointed two new Trustees, namely:

communication. The Mvula Trust is committed to fair dealing, honesty and integrity in the conduct of its own activities.

attention during the period under review that indicates non-compliance with pertinent legislation and codes of good practice.

The Board, through Board and subcommittee meetings,

2.5 Appointments

the Board, each Trustee of The Mvula Trust signed the Code of Conduct form. Trustees and employees of the Trust are required to comply with the values of The Mvula Trust such as transparency and accountability, sustainability, empowerment and participation, professionalism and

the appropriate accounting policies, supported by reasonable and prudent judgments and estimates. The Board of Trustees and Management have reasonable expectations that The Mvula Trust has adequate resources to continue as a going concern in the foreseeable future. The Mvula Trust has neither the intention nor the need to liquidate or curtail materially the scale of its operations.

2.11 Compliance

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2.10 Continued Existence

The Mvula Trust is committed to ensuring compliance across all operations and implementation of good corporate governance practices.

our stakeholders think about The Mvula Trust, a customer satisfaction survey for internal and our external customers

2.12 Strategic developments and policy changes

regularly with institutional investors on key strategic themes and the performance of The Mvula Trust, through various presentations scheduled meetings and by participating in national conferences.

The Mvula Trust has extended its scope of operations to include operation and maintenance, as well as institutional development with a focus on disaster management. Training and capacity building remains the other area that The Mvula Trust will be focussing on in ensuring the sustainability of its operations.

matters disclosed either by the Trustees or an employee of The Mvula Trust.

year in order to ensure that the wide range of information provided on the website is informative and up to date. The Mvula Trust is committed to transparency and welcomes any fruitful discussions and questions arising from its operations and activities. the Mvula trust annual report 2014

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ManageMent and

prograMMe perforManCe

www.themvulatrust.org.za

A leading developmental NGO

exeCutiVe report year, yielding results beyond the targets set for the organsiaton. The total amount from

that were temporarily suspended because of service level protest in some communities around the project villages to those projects that were still at the planning phase at the end

provinces conducted activities to service various clients, mainly on basic services to the poor people in rural, periurban and urban areas. The turnover grew to almost double that of the previous year because of more work that the organsiaton secured for the school Water and Sanitation projects. The organsiaton takes its pride from the use of

communities are placed at the centre of development.

This implies that, through their representative CBOs, the communities engage in all activities from planning to postconstruction activities.

the Board actions, in relation to operations, are duly processed, including those seeking considerations were held regularly. This forum provides a forum for the regional business units to share information on progress in their business operations as approved on the annual business plans.

leadership and management of the secured

The strategic planning workshop was held successfully towards the end of the previous year, so as to ensure proper

their examinations in order to gain full accreditation by relevant project management institutions. This

participated in the planning and were part of implementing

the development sectors wherein we participate.

Turnover of 44 across the organsiaton’s strategic programmes

100%

areas. A number of innovative projects were secured, thus ensuring that the organisation plays its role in widening its clientele and in providing development sectors with alternative initiatives.

sustainable livelihoods, local government support, water resource management, disaster management, community-based construction operations and management, informal settlements, and management

provided oversight and support to the business units on

75.8%

category of disaster management. The contract the operations. The other key task was assistance of units activities began during the financial year. Full reporting on this programme will be included in the next annual report.

24.2%

keyfigures for 2014 work

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interim until the replacements were in place.

Board are constantly kept up-to-date on the intermediate activities. The support from the Executive Committee

The regional units will share some critical attributes of the project and programme in the next section.

Each unit will provide reports on all projects that they implemented as part of providing the full spectrum of our services that we delivered to our

the operations run smoothly. This structure also ensured that

strategiC prograMs Major projeCts

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national

Name of Programme

Gauteng, North West and Mpumalanga - RAIN Water For Schools

Programme Description

to ensure that Water and Sanitation provision at schools is sustainable and that public health to integrated and sustainable Water and Sanitation provision prevailing in current approaches.

3.2 Summary of Programme Performance

The key challenges that the project seeks to address are as follows: The function of this unit is to lead, manage, plan, coordinate

Absence of user education for learners, educators and caretakers.

and direction to project teams with regards to best practices methodologies in the implementation of projects. Based Programme Objectives

application of project management principles across the organisation.

To provide adequate Water and Sanitation facilities at target schools.

To put O&M plans in place at each selected school, To provide health, hygiene and user education for learners and educators at all target schools.

To involve local community structures in support, protection and proper O&M of Water and Sanitation infrastructure at target schools.

To promote a clear understanding of the roles and responsibilities among local government institutions regarding O&M at target schools.

To plan and implement the project in line with relevant government guidelines.

To document and disseminate lessons learnt through the project implementation to DBE and other stakeholders for inclusion in policy, strategy and replication in other relevant sec-

Eradication of schools water and sanitation backlogs

1667

benefiters

year 2014

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JOBS CREATED

22

youth

JOBS CREATED

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Name of Programme

national

includes skills development, jobs created, school Assessment of Water and Sanitation facilities.

Development, training and mentoring of SMTs and SGBs on O&M plan and other sustainability issues.

Replenish Africa Initiative (RAIN) Water for Schools Programme Name of Programme

Gauteng, North West and Mpumalanga - RAIN Water For Schools

Gauteng, North West and Mpumalanga - RAIN Water For Schools

Project Funding

Coca Cola Foundation

Operations and maintenance training.

Monitoring and evaluation.

Site Location Challenges Project Participants

Lessons Learnt Technical Support

nani

The project does not have enough funding to cover the full cost of the scope of work required by most schools thereby disadvantaging schools that do not have alternative funding sources. Fruitless expenditure should be avoided as in the case of a school where learners were relocated after some money was spent on part of the project activities.

nies Social Facilitation was done in-house by The Mvula Trust

Companies

Tshegofasto Trading

Companies

Department of Education

participating Service Delivery

Scope of work completed in all

Assessment of Water and Sanitation facilities.

Development, training and mentoring of SMT and SGB on O&M plan and other sustainability matters.

Community mobilization.

Construction of new infrastructure (toilets and rain water ties.

Operations and maintenance training.

Monitoring and evaluation.

education Job creation women youth

1 22

Skills development Experiential training Experiential training

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Name of Programme

eastern Cape

Programme Description Programme Objectives

Eastern Cape The Mvula Trust, Eastern Cape region, implemented a year under review.

Eastern Cape Schools Water and Sanitation Operation and Maintenance Programme Education districts. tation of the schools Water and Sanitation operation and maintenance plan.

To promote active stakeholder engagement and participation in the project lifecycle.

To enhance and sustain the functionality of schools Water and Sanitation infrastructure .

To provide operation and maintenance services of school Water and Sanitation facilities, using a franchising model. tion and maintenance plan.

Programme Scope Stakeholder mobilisation and participation.

Stakeholder engagement and participation.

Development of locally-based franchisee micro businesses.

On-going operation and maintenance of school Water and Sanitation infrastructure.

Development and implementation of franchise-based schools Water and Sanitation O&M sustainability plans.

Development and implementation of a school Water and Sanitation infrastructure sustainability plan.

Project Funding

Department of Education

Site Location Education districts

District Municipality

Amathole District Municipality

Project Participants Yolisa Mbatha

Eradication of schools water and sanitation backlogs

17646

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Assessment of school Water and Sanitation facilities.

Assessment forms completed and photos taken of the condition of each facility.

Forms and photos submitted by Franchisor to The Mvula Trust for approval to proceed with “A” Service.

Monitoring of “A” Service implementation.

Cleaned toilets inspected by school and completion reports signed by principals.

JOBS CREATED

1838

youth

The Mvula Trust.

JOBS CREATED

126

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Name of Programme

eastern Cape

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Project Participants

Builders, GT Majiya, Butheso Construction, Sinawo Amandla

Name of Programme Programme Description

Amanz’abantu Services -

through accelerating the provision of infrastructure to schools, prioritising those schools where there is no infrastructure at all. The focus on The Mvula Trust implemented projects was to provide Water and Sanitation infrastructure.

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Programme Objectives

tricity, and To replace those schools constructed from inappropriate material, including mud schools to contribute towards levels of optimum learning and teaching.

Programme Scope -

RHIG - Rural Household Infrastructure Grant Name of Programme Project Description

Project Funding

health and hygiene awareness promotion.

Department of Education

Site Location

-

Project Objectives

Education districts

t To support municipalities in eradicating rural household Water and Sanitation supply backlogs. t To improve the health and quality of life in rural communities. t To contribute to job creation and local economic development.

Project Funding

Amahlathi District Municipality

: 1

Site Location

Ward 12: Mahanyaneng, Mangoloeneng

Amathole District Municipality

Project Participants Yolisa Mbatha Nkonkobe: Mbhashe:

project Project Participants Bulelwa Mnyaka

Nkonkobe: Gwavu, Mbhashe: -

Nkonkobe Municipality: Masakhane Consortium, Sinakho

nies

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The Mvula Trust

nies Companies

Mbhashe Municipality:

Companies

participating

Companies

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Social Facilitation was done in-house by The Mvula Trust

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Municipal Infrastructure Grant (MIG)

eastern Cape

Name of Programme Project Description Municipalities Project Objectives

Name of Programme Total number of toilet units completed

Service Delivery

Mahanyaneng Mangoloaneng

t To eradicate rural household sanitation backlog. t To facilitate meaningful community participation and institutional development. t To ensure health and hygiene improvement. t -

Project Funding user education Job creation

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Skills development

1

Site Location

2

development, jobs created, families receiving toilet units t Mining of sand from river banks of Mt Fletcher was stopped by Department of Minerals and Ground water protocol due to suppliers not having licenses for mining. t Baseline survey. t Community mobilisation and participation. t Capacity building and empowerment of emerging contractors, community workers and others. t t Construction monitoring. t t Site meetings. t

Site Activities assurance

t Mining of sand from river banks of Mt Fletcher was stopped by Department of Minerals and Energy due to suppliers not having valid licenses for mining. t Shortage of suppliers with SABS approved building materials. t general costs for contractors. t Ground conditions such as hard rock and sandy soils increased construction costs. t t

Challenges

Risks

location of project Project Participants Bulelwa Mnyaka

nesses thereby risking the sustainability of their companies.

Interventions

& Bulelani Majiki

Training and mentorship support given to all emerging contractors by The Mvula Trust technical project managers. experiential training opportunities.

Lessons Learnt

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Close monitoring, supervision and mentorship of emerging contractors are critical for achieving accelerated and quality implementation.

Most contractors with low educational levels lack adequate skills to understand contract and invoicing requirements.

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Companies Companies

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Name of Programme

eastern Cape

Project Participants

-

participating

Name of Programme Project Participants

Elundini LM Contracting Companies

Service Delivery -

Yonwabanani Trading, Mziwonke Trading,

Total number of toilet units completed

user education

education

Job creation women

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youth

Trading, Motlakatsi Construction, Boitoko Construction, Maholosine Skills development

ceived Experiential training Experiential training

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skills development, jobs created, families receiving toilet units Nature/ type of stakeholder engagements

Mangoela Construction & Trading, Sesothando General Trading, -

meetings with contractors.

Risks and Challenges

poor access to roads, severe cold winter conditions, and a few local suppliers available to supply building material to contractors.

Interventions

Continuous negotiations with suppliers for cheaper rates, timeous processing of contractor paycontractors with low literacy levels.

Lessons Learnt Sphephangaye Trading, Deens Trading, Tiz Trading, Bukari General

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Opportunities for local job creation, income generation and wealth creation are optimized through the use of labour-intensive construction methods, and the participation of empowered emerging contractors and local workers.

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Name of Programme

eastern Cape

JGDM Springs Water Protection Elundini and Senqu

project

MWIG – Municipal Water Infrastructure Grant

Project Participants Bulelwa Mnyaka

Name of Programme

JGDM Springs Water Protection

Project Description

The project entails construction of springs water protection which aims to address the water services backlog, improvement of service levels, and, in general, contributing to sustainable development. Activities included supporting strategic policy development as well as water services

-

Project Objectives

t t t t t t

nies To create opportunities for employment of local workers.

To eradicate poverty.

To capacitate and empower emerging contractors.

To provide opportunity to local suppliers.

To transfer of long-term skills to local workers.

Companies Elundini: Companies

Project Funding

Mamelesi Construction, Erino Construction and Other Services, Siphosenkosi Communications, Thozama’s Trading Enterprise,

Site Location -

participating

Service Delivery -

Scope of work measures were applied:

second layer, plastered inside and outside, waterproof membrane on inside wall and A standpipe.

-

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eastern Cape

kwaZulu-natal north Kwazulu-Natal North

Name of Programme

JGDM Springs Water Protection

Service Delivery

Scope of work

services to various municipalities through the Municipal ble or exposed to erosion, gabions or dry stone masonry can be used to stabilise the area. A fence is used to protect animals from damaging Spring Boxes, taps and contaminating water.

highlights:

Other services also included the following: End-user education Water Conservation measures

Job creation -

Skills development ential training

tial training

Community mobilization through Ward Councillors.

Submission of priority list from Ward Councillors.

Water quality testing.

Training of emerging contractors on construction of spring protection.

Construction of facilities on spring protection.

Eradication

Training of communities on water conservation measures.

Monitoring and evaluation.

Challenges require protection.

Lessons Learnt communities.

Emerging contractors were given an opportunity to implement innovative projects.

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1676

JOBS CREATED

toilet units

year 2014

245

JOBS CREATED

youth

125

woman

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kwaZulu-natal north

Name of Programme

ILembe District Household Sanitation Programme

Programme Description and Objectives Project Funding

Name of Programme

Pomeroy-Douglas households Sanitation Site Location

Programme Description and Objectives Project Funding

-

Site Location

Project Participants Chamane

Project Participants

EDOT Development, Tiki Development

nies Companies Service Delivery

Total number of toilet units completed

Service Delivery

Job Creation

Total number of toilet units completed

Skills Development Job Creation development, jobs created, families receiving toilet units Skills Development

Nature/ type of stakeholder engagements Risks and Challenges conditions in other areas.

development, jobs created, families receiving toilet units

Interventions Lessons Learnt are vital for positive interaction.

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Name of Programme

kwaZulu-natal north

Programme Description and Objectives Project Funding

Name of Programme Nature/ type of stakeholder engagements

Site Location ous community meetings and health and hygiene end user education.

Municipality material, construction, site meetings, health and hygiene end-user education.

-

Risks and Challenges

Project Participants

pliers, lack of required skills within the project.

Interventions

Community mobilisation and community support as well as the provision of wards maps indicating boundaries and taking into consideration the site conditions.

Training and Development Tiki Construction, Sakhigalu Trading,Deezlo

Lessons Learnt ompanies

neutral stakeholder relations with councillors that are based on expertise and skill are vital for positive interaction.

Service Delivery

Total number of toilet units completed

Job Creation

Skills Development

development, jobs created, families receiving toilet units Nature/ type of stakeholder engagements Site Activities

struction, end-user as well as health & hygiene training.

Risks and Challenges Delays in appointment and payment of invoices by DM Interventions

To keep abreast about DM’s intention to appoint.

Lessons Learnt skill are vital for positive interation. Sensitivity and continuous stakeholder relations needs to be conducted in lieu of complex community dynamics.

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Municipal Infrastructure Grant (MIG)

kwaZulu-natal south

Name of Programme Programme Description and Objectives

KwaZulu-Natal South

tion facilities, hand-washing facilities and health and hygiene education utilising an approach which maximises community opportunity.

services to various municipalities through the Municipal Project Funding the following project highlights:

Site Location -

Project Participants The Mvula Trust utilised a community based model where all labour was resourced directly from the community.

The Mvula Trust utilised a community based task team which was trained and mentored in carrying

Companies Service Delivery

Eradication

Total number of toilet units completed

Job Creation

121

Sanitation backlog Skills Development

76 278

benefiters year 2014

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the Mvula trust annual report 2014

JOBS CREATED

497

youth

These included households receiving sanitation facili-

JOBS CREATED

121

development, jobs created, families receiving toilet units

woman the Mvula trust annual report 2014

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Name of Programme

kwaZulu-natal south

Msunduzi Municipality Household Sanitation Project Rural Household Infrastructure Programme – Ugu District

Programme Description

holds.

Project Funding Settlements

Name of Programme Nature/ type of stakeholder engagements

tinuous community meetings.

Msunduzi

-

Interventions

Site Location

Project Participants

A community-based approach was utilized where all labour was sourced directly from the community.

The Mvula Trust

The Mvula Trust has recommended to the Municipality that their O&M programme be extended to cover basic O&M and mentoring for sanitation and health and hygiene delivery in order to make it more sustainable.

Lessons Learnt

Maggie Tshembeni

Companies

Service Delivery

Total number of toilet units completed

local communities to participate in the choice of technology to be implemented.

Job Creation

Skills Development

development, jobs created, families receiving toilet units Nature/ type of stakeholder engagements

-

Risks and Challenges

Interventions

-

The use of concrete panel toilets as opposed to the block toilets built previously brings Msunduzi

Lessons Learnt the duration of the project was so short.

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Name of Programme and Client Education

liMpopo

Project Description and Objectives

Limpopo

through accelerating the provision of infrastructure to schools and prioritising those schools where there is no infrastructure at all. The focus on The Mvula Trust implemented projects was to provide Water and Sanitation infrastructure.

Project Participants Client:

Department of Basic Education

Geohydrologists:

1 consultant

organisations or Government

presents the following project highlights:

Number of Jobs Created/ People Employed village/ area and name of local municipality

Eradication

-

Site Activities

of schools water and sanitation backlogs

Stakeholder Engagements incl PAT involvement

Engagement with SGBs, co-ordinator representatives and client representatives on site as well as during progress review meetings.

Risks & Challenges Interventions Lessons Learnt

-

the entire value chain for equipments and materials used for construction.

3800

benefiters

year 2014

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JOBS CREATED

2320

youth

JOBS CREATED

938

liMpopo

woman the Mvula trust annual report 2014

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Name of Programme and Client Project Description and Objectives

School Water and Sanitation Programme Limpopo Provincial Department of Education

Name of Programme and Client

accelerating the provision of infrastructure to schools prioritising those schools where there is no infrastructure at all. The focus on The Mvula Trust implemented projects was to provide Water and Sanitation infrastructure.

Project Participants

Project Description and Objectives

The project sought to improve the sustainability of management of Water and Sanitation facilities in Schools.

Project Participants Funder:

Coca-cola foundation

organisations or government

organisations or gvmt

Number of Jobs Created/ People Employed

Number of Jobs Created/ People employed

village/ area and name of local municipality

village/ area and name of local municipality -

Site Activities

Capricorn District Municipality: Mopani District Municipality:

2 Schools 2 Schools

Waterberg District Municipality:

2 Schools

Site Activities

compilation.

Stakeholder Engagements incl PAT Involvement

Engagement with SGBs, co-ordinator representatives and client representatives on site as

Stakeholder Engagements incl PAT involvement

joint operations meetings with client.

Risks & Challenges

Risks & Challenges

Engagement with SGBs, funder representatives and departmental representatives on site as well as during progress review meetings.

Interventions

Interventions

Lessons Learnt

Lessons Learnt

-

cal back-stopping, school authorities can sustainably manage school infrastructure within the departments especially where major repairs are involved.

entire value chain for equipments and materials used for construction.

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Name of Programme and Client

Community Work Programme COGTA

Name of Programme and Client

Project Description and Objectives

The project sought to provide employment safety net and income relief to the unemployed.

Project Description and Objectives

Project Participants organisations or government

Establish a network of organisations and an active secretariat working to promote the research, development and scaling-up of agroforestry in Southern Africa region to coordinate this network.

Synthesise experiences with agroforestry research, scale-up and share lessons learnt among partners.

Analyse policy briefs on promotion of EverGreen agriculture and agroforestry that will sensitise policy makers. culture and agroforestry innovations.

Number of Jobs Created/ People employed village/ area and name of local municipality

Project Participants Active sites: Blouberg, Mogalakwena and Mutale, Greater-Giyani, Greater-Tubatse, Greater-Tzaneen,

Municipalities Site Activities

agriculture and agroforestry.

organisations or government

Number of Jobs Created/ The project is a research intervention whose impacts in the long term may create jobs.

People Employed

Activities included:-Cleaning community environs, support to schools,

Mopani District, Capricorn District, Sekhukhune District, Waterberg District and Sekhukhune village/ area and name of District local municipality

Stakeholder Engagements incl PAT Involvement Risks & Challenges

-

Site Activities

ment processes.

Interventions Lessons Learnt

Baseline survey to understand agroforestry practices, Agroforestry policy analysis, creation of platforms for learning and information exchange, awareness raising to farmers, pilot activiEverGreen agriculture and agroforestry.

Stakeholder Engagements incl PAT Involvement

representatives from Botswana, Mozambique, Malawi and South Africa.

Risks & Challenges Interventions Lessons Learnt

Agroforestry practices have potential to improve productivity of farmers, through improving health through growing and use of medicinal herbs and shrubs. Agroforestry can result in

liMpopo 58

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Name of Programme

MpuMalanga

Project Description and Objectives

Delivery: tion, health and hygiene promotion and operation and maintenance training.

Mpumalanga

Training:

The region is headed by Ms. Shivon Wiggins. Ms. Wiggins is

eradicating the existing Water and Sanitation backlog.

Department of Basic Education

Project Funding

Ms. Wiggins presents the following project highlights:

Site Location -

project Ms. Shivon Wiggins

Eradication of schools water and sanitation backlogs

7177

benefiters

year 2014

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JOBS CREATED

146

youth

JOBS CREATED

41

MpuMalanga

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Name of Programme

Name of Programme

Project Participants

Site Activities: Site establishment, pit digging, pit lining, slab installation, construction of top structure and

Semenya Furumela Consulting Engineers (SFC En-

Management Services Companies

hygiene.

support, social facilitation and health and hygiene training at the sites.

-

Companies Civil Works cc, Mmamokgadi Business Enterprise, -

monthly and weekly progress reports.

Risks and Challenges

Delay on documentation approval by the client.

-

Most of the SGB members on the farms are working during the week, thus making it

Aurecon Group Company, Department of Basic participating Mpumalanga Department of Education Service Delivery

Total number of toilet units completed

Interventions provide technical support to the construction activities.

Expediting invoicing by contractors and processing thereof.

The SGB members were engaged to conduct the meetings on weekends.

Job Creation

Skills Development artisan skills artisan skills development, jobs created, families receiving toilet units Nature/ type of stakeholder engagements

Weekly and monthly meetings, monthly reporting and

MpuMalanga 62

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Values through

leadership Policy, Advocacy and Training

Name of Programme

Disaster Assessment and Cost Recovery Project

Project Description and Objectives Department of Cooperative Governance

Project Funding Site Location

accredited training is delivered across all business units and external training and they continuously develop training programmes aimed at young people and women with a supports research, policy and information dissemination,

Project Participants

is instrumental in preparing conference topics, research papers, posters and other research work on the activities of TMT, as well as the related themes of rural development, gender empowerment and others.

Mr. Takalani Modau

nies

Service Delivery

Total number of toilet units completed

Job Creation 2 Skills Development

development, jobs created, and families receiving toilet Mr. Takalani Modau Nature / type of stakeholder engagements Risks and Challenges assess.

Interventions Lessons Learnt

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To allow assessments to be done by the engineers and not by social scientists because they lages was not part of the assessment and must always be considered as a priority when doing disaster assessment.

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Values through

Name of Programme Project Description and Objectives

leadership

to complement and not replace existing livelihoods.

Project Funding Site Location

Community Work Programme The The Mvula Trust was appointed by the Department of

minimum level of regular and predictable work opportunities for those who need it, targeting areas of high unemployment, where sustainable alternatives are likely to remain limited for is also to achieve the following:

To provide an employment safety net, recognising that sustainable employment solutions will take time, and will reach the most marginalised people.

To contribute to the development of public assets and services in poor communities.

To strengthen community development approaches, and To strengthen the economic ‘agency’ of people in poor areas, providing work experience, enhancing dignity and promoting social and economic inclusion.

This programme has been completed and the report therefore, provides a detailed summary of the completed programme.

the following manner:

Project Participants

Goodenough Molefe -

This programme is a non-state sector programme, implemented

nies

Dhladhla Foundation and

are implemented to the satisfaction of the local structures and local communities. This second level of appointment in the following appointments: Mr. Goodenough Molefe

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Name of Programme Project Participants

Name of Programme Companies that provided training to participants

A total of 112 companies to do training (both accredited and non-accred-

Service Delivery

Service delivery or outputs

Services delivered on this programme are based on carrying out “useful work�.

local companies to register. This was the picture of these companies per province. products or outputs achieved through this programme depends on the type

Stakeholders participating

to support each site which included the main actors (e.g. traditional coun-

people with enabling documents necessary for citizenship and access to awareness around immunisation programmes, discouraging drug abuse, and attending to critically ill people and helping those who cannot access hospitals because of disabilities, etc.

Education

These forums sat on bi-monthly or quarterly basis, depending on urgency of issues per each site.

of school premises, minor repair work at some schools, school learner assistance, assisting learners with homework, and school administration support, assist with feeding scheme operations.

took players at a provincial level, including government several departments,

-

Cleaning rivers and water canals, installing potable water pipes, construction of local roads, rehabilitating public and rural roads, building local culverts to improve access to neighbouring communities, engaging in agricultural projects, constructing public shelters for pre-schools and the homeless.

team, COGTA and DCoG. The department also invited other departments Starting community gardens in solid waste dumps, removing illegal solid waste, creating community parks and cleaning public spaces -

One of the key outcome of this programme was the management of about tivities such as successful recruitment to these numbers since the beginning

and t o ensure alignment and progress against the implementation plans.

that the participants are paid monthly.

Values through

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Name of Programme

Name of Programme

Service Delivery

Partnerships care groups that helped the poor elders and disabled people with health and hygiene or user health support. The number of these initiatives also depended on education the request from the communities.

inces

government departments, municipalities, private sector and donor organsiatons participated in this programme in one way or the other.

Job Creation for women for youth

Key Performance Indicators

disabled people

As per contract between the Trust and DCoG

Skills Development males, youth and people receiving artisan skills agriculture, computer and administration, home-based care, early childhood development, social service, occupational health and establishing cooperatives.

Financial Implications

Nature/ type of stakeholder engagements

Trust and the Department of Cooperative Governance were met at the end of the programme. This also includes the directives that were issued by the client within the contract duration.

gagement since they represent the local communities, government departments (with local

Total Budget Spent work to be carried out on sites.

These amounts include fees for the all service providers including

Amount Paid to Participants

Also as percentage of budget

Amount Used Towards Training

Also as percentage of budget

Number of Participants Trained

Trained participants

UIF provisions

For all participants

for the programme across the sector, provides oversight on the running of the programme. budget. register their participation and are assigned roles and responsibilities, according to the areas they want to contribute. This forum looks at progress and guidance of the programme initiative being implemented.

They were kept up-to-date for all participants who were on the programme till the end of their contract with The Mvula Trust. The accountable.

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human resources

Management

www.themvulatrust.org.za

A leading developmental NGO

`

Employment

Human Resources Development

Reward and recognition

The development and implementation of strategies, the organisation to improve its overall performance through its revised performance management system during the to performance management was introduced and allows the organisation to identify key internal and external drivers and focuses on these drivers in order to improve

Mvula Trust attracts, recruits and places the right people with the right skills, is central to the work of the unit relating to employment. The development and updating of an employment equity plan for the organisation, taking into account current demographics, is an essential part of the

Trust ensures that its employees have the right skills and undertaking activities such as conducting skills audits periodically, coordinating training and development, as well as developing a career management programme for

systems that aim to ensure that The Mvula Trust is able to attract and retain the right caliber of employees, as well as the contribution that they make.

with all the applicable legislative requirements governing and development initiatives.

members understand and are able to function within The Mvula Trust environment.

programme, as well as contributing to a skills development

Utilisation / deployment

Retention

The alignment of human resource allocation with the organisation’s strategic and operational priorities, includes identifying the internal capacity gaps as well as developing strategies that will ensure the building and managing of

and it wishes to retain its employees by ensuring that appropriate conditions exist for an enabling work environment

that the administration of justice and fairness is applied in

The Mvula Trust:

Organisational Design how The Mvula Trust is structured is a key function of

collaborative effort with all staff members within the are aware of their roles and responsibilities at various levels

for the development of programmes that will encourage strategic objectives, as well as the operating internal and relationships, conducting job analysis, as well as job design in order to develop appropriate job descriptions for the

procedures and it aims to ensure that all employees are aware of their rights and responsibilities in the workplace.

capacity gaps.

Leadership Development

The Mvula Trust by identifying key and critical skills for the organisation, implementing talent management programmes and periodically reviewing conditions of employment, in an attempt to ensure that working conditions are conducive for high performance.

the success and growth of The Mvula Trust.

key to implementing a successful organisational design. satisfaction levels. the required organisational leadership competencies, as well programmes and strategies, utilising various methods such as coaching and other related interventions.

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HEAD OFFICE STRUCTURE

organisational structures.

Category Senior Management % Of sub total Target Professional and Middle Management % Of sub total Target Skilled and Junior Management % Of sub total Target Semi-skilled % Of sub total Target % Of sub total Target Temporary % of sub total TOTAL Cumulative % Target

Female 6 43%

Black Male 6 43%

Total 12 86%

Female 2 14%

5 45%

6 55%

11 100%

0 0%

25 69%

10 28%

35 97%

12 75%

4 25%

7 100% 0 0% 55 65%

White Male 0

Total

Total 2 14%

14 17%

0 0%

0 0%

11 13%

1 3%

0 0%

1 3%

36 43%

16 100%

0 0%

0 0%

0 0%

16 19%

0 0%

7 100%

0 0%

0 0%

0 0%

7 8%

0 100% 26 31%

0 100% 81 96%

0 0% 3 4%

0 0% 0 0%

0 0% 3 4%

0 0% 84 100%

Demographic Stats

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the Mvula trust annual report 2014

Age group up to 29 years % Of sub total

Female 6 55%

Male 5 45%

Total 11 13%

30 – 39 years % Of sub total

23 72%

9 28%

32 38%

40 – 49 years % Of sub total

19 73%

7 27%

26 31%

50 years plus % Of sub total

10 67%

5 33%

15 18%

TOTAL Cumulative %

58 69%

26 31%

84 100%

the Mvula trust annual report 2014

77

Internship and Experiential Learning The Mvula Trust has an internship and experiential training policy where previously disadvantaged students valuable experience, so that they can be employable once they complete the training. Trainees are assisted and supported during this time through a mentorship process, where their progress and performance is recorded and discussed with them in order to ensure that they are gaining the experience they require, while at the same time contributing to the organisation’s performance.

were 2 interns (involved in Administration

Inclusivity and Diversity Management The Mvula Trust prides itself in being an inclusive organisation. The Mvula Trust’s recruitment policy and processes are

both individual, as well as the overall performance of the organisation into consideration. As part of the remuneration

employees are also expected to be part of The Mvula the table below: The Mvula Trust Salary Band in Rand Peromnes Grade 1 1 494 894.11 3 1 142 991.09 5 726 842.23 6 586 464.14 7 4671 36.70 8 383 902.66 9 322 724.89 10 256 874.06 11 222 277.29 13

131 879.18

No. of post per band 1 738 253.02 1 277 452.30 865 377.62 699 45785 557 484.25 422 032.03 352 153.09 285 696.65 244 911.09

1 982 760.74 1 443 520.38 969 203.88 837 733.69 660 404.89 481 655.86 420 742.13 342 831.71 280 213.48

1 2 3 2 4 2 4 1 2

149 746.67

170 000.68

1

4.5 Job Evaluation The organisation has a job evalu ation policy and currently system measures the weight or size of a job, not the

expertise. The Mvula Trust’s policy aims to ensure that there is representation among designated groups especially women.

of a job to the organisation. The job evaluation system

The organisation dealt with the following labour related matters during the reporting period:

There were no injuries on duty incidents recorded during the reporting period.

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annual financial r

statements 5. ANNUAL FINANCIAL STATEMENTS

www.themvulatrust.org.za

A leading developmental NGO

The Mvula Trust Statement of Board of Trustees’ responsibility and approval for the year ended 30 june 2014

5.1 Statement of Board of Trustees’ responsibility and approval The Trustees are required by the Trust Deed, to maintain adequate accounting records and are responsible for the

and Medium-sized Entities, in a manner required by the Trust Deed and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

by the Trust and place considerable importance on maintaining a strong control environment. To enable the Board of Trustees to meet these responsibilities, the Trustees set standards for internal control aimed at reducing the risk of

level of risk. These controls are monitored throughout the Trust and all employees are required to maintain the highest ethical standards in ensuring the Trust’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the Trust is on identifying, assessing, managing and monitoring all known forms of risk across the Trust. While operating risk cannot be fully eliminated, the Trust endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The Trustees are of the opinion, based on the information and explanations given by management that the system of

absolute assurance against material misstatement or loss.

operational existence for the foreseeable future.

____________________________

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83

Emphasis of matter without qualifying our opinion, we draw your attention to Note 15 Related Parties for details of

Other Reports Required by the Companies Act for the year ended 30 June 2014, we have read the Report by the Board of Trustees for the purpose of identifying whether there are material Emphasis of matter

5.2 Independent auditor’s report to the trustees of The Mvula Trust.

Independent auditor’s report to the trustees of The Mvula Trust

without qualifying our opinion, we draw your attention to Note 15 Related Parties for details of Emphasis m of matter

Report on the annual financial statements Trust (“the Trust”) which comprises the

between trustees and theby Trust.

Otherthe Reports Required the Companies Act 87 to 102. for the year ended 30 June 2014, we have read the Report by the Board of Trustees for the purpose of identifying whether there are material

Trustees’ Responsibility

Trustees’ Responsibility

The Trust’s directors are responsible for the preparation and fair presentation of these financial l Reporting Standards for Small and Medium-

of Trustees………………………………… for the purpose of identifying whether there are material inconsistencies between these reports and the m

presentation manner required by the Trust Deed. This responsibility includes: designing, implementing and maintaining internal control

SizweNtsalubaGobodo Inc. Partner: Altaf Fajandar Registered Auditor Johannesburg Date:

2014

Auditor’s Responsibility are reasonable in the circumstances Ou

Auditor’s Responsibility

………………………………………….. the audit to obtain a reasonable

misstatement.

elected depend on the auditor’s judgement, including the ntity’s

…………………………………

SizweNtsalubaGobodo Inc. Partner: Altaf Fajandar Registered Auditor Johannesburg Date:

2014

appropriate in the circumstances, but not for the purpose of expressing an opinion on the entity’s

statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of

order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the entity’s internal control.

An audit our alsoopinion. includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting Opinion

Opinion and in the manner required by the Trust Deed.

–sized Entities

Head Office

Nonkululeko Gobodo (Executive Chairman), Victor Sekese (Chief Executive) A comprehensive list of all Directors is available at the company offices or registered office.

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The Mvula Trust Report by the Board of Trustees

The Mvula Trust Report by the Board of Trustees for the year ended 30 june 2014

for the year ended 30 june 2014

commitment of the Trustees to lead the organisation in accordance with principles that are based on transparency, accountability, integrity and ethical leadership.

partnership with local stakeholders, working with our partners and funders in Government and the private sector, and continuously being active members of our local communities where the Water and Sanitation agendas will be enhanced in the interest of acceptable access by all communities.

The Mvula Trust continues to endeavour towards complete legal compliance with regard to legislative and regulatory ____________________________ to continuously ensuring compliance with relevant legislation. The Fourth Amending Trust Deed of The Mvula Trust was

this impacts on The Mvula Trust is a key activity that the Trustees commit to with extra vigilance.

leadership by approving the Code of Conduct and Ethics for the Board which every Trustee has signed. At every

and were discussed at Management level. The Board of Trustees will continue playing its role in improving stakeholder

During the period under review, the Board appointed two new Trustees to the Board of Trustees of The Mvula Trust,

The Mvula Trust prides itself on being a learning organisation and a leading non-governmental organisation. The

concern in the foreseeable future.

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The Mvula Trust Statement of Financial Position for the year ended 30 june 2014

Figures In Rand

Notes

2014

2013

R

R

2

874 910

790 339

3

44 391

32 645

919 301

822 984

4

36 846 957

66 919 390

5

101 384 138

51 360 674

6

44 135 623

39 912 965

182 366 718

158 193 029

183 286 019

159 016 013

36 463 195

18 293 326

ASSETS Non-current assets Property plant and equipment

Current assets

2014 annual financial statements

TOTAL ASSETS EQUITY AND LIABILITIES Equity

Current liabilities Trade and other payables

7

143 322 824

138 922 687

Provisions

8

3 500 000

1 800 000

146 822 824

140 722 687

183 286 019

159 016 013

TOTAL EQUITY AND LIABILITIES

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The Mvula Trust Statement of Comprehensive Income

The Mvula Trust Statement of Changes in Equity for the year ended 30 june 2014

for the year ended 30 june 2014

Figures In Rand Revenue

Notes 10

2014

2013

R

R

72 248 859

54 020 776

Cost of sales

Figures In Rand

Retained income

Total equity

R

R

17 030 396

17 030 396

1 262 930

1 262 930

Balance at 30 June 2013

18 293 326

18 293 326

Surplus for the year

18 169 869

18 169 869

Balance at 30 June 2014

36 463 195

36 463 195

Balance at 30 June 2012 Surplus for the year

Gross surplus

67 083 079

46 139 873

11 803 951

1 083 706

14 511 807 13 Surplus for the year Total comprehensive income for the year

90

the Mvula trust annual report 2014

3 658 062

2 156 558

18 169 869

1 262 930

-

-

18 169 869

1 262 930

the Mvula trust annual report 2014

91

The Mvula Trust Statement of Cash Flow

The Mvula Trust Accounting Policies

for the year ended 30 june 2014

for the year ended 30 june 2014

Figures In Rand

Notes

2014

2013

R

R

Accounting Policies 1. Presentation of Financial Statements 1.1 General Information

14

1 153 089

13

3 658 062

2 156 558

4 811 151

which was founded to support the Government in the delivery of equitable and quality water, sanitation and related infrastructure.

1.2 Basis of Presentation

2&3

Total Cash movement for the period

4 222 658 6

Cash and cash equivalents at the end of the year

39 912 965

89 576 373

44 135 623

39 912 965

1.4 Adoption of amendments to standards and new interpretations 1.5 Financial instruments Initial recognition Estimates and judgements are evaluated continually and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Mvula Trust makes estimates and assumptions concerning the future. The resulting accounting estimates will, by

party to the contractual provisions of the instrument.

92

the Mvula trust annual report 2014

the Mvula trust annual report 2014

93

The Mvula Trust Accounting Policies

The Mvula Trust Accounting Policies

for the year ended 30 june 2014

for the year ended 30 june 2014

Accounting Policies (Continued)

Accounting Policies (Continued)

Trade and other receivables Trade receivables are measured at initial recognition at transaction price, and are subsequently measured at undiscounted amount of the cash or other consideration expected to be received. Appropriate allowances for estimated irrecoverable

1.7 Intangible Assets amortisation and any accumulated impairments. The Mvula Trust’s intangible asset is computer software licenses which is amortised over its contractual useful life.

which will necessarily be an approximation of the amount that we anticipate receiving for the asset at the reporting

1.8 Provisions and contingencies Trade and other payables Trade payables are initially measured at transaction price, and are subsequently measured at undiscounted amount of the cash or other consideration expected to be paid.

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments

and

The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

are initially and subsequently recorded at fair value.

1.9 Revenue 1.6 Property, plant and equipment The cost of an item of equipment is recognised as an asset when:

can be measured reliably.

rebates and prompt settlement discounts.

Equipment is measured at historical cost less accumulated depreciation and accumulated impairment loss. Cost includes all costs directly attributable to bringing the asset to working condition for its intended use. Depreciation performed to date as a percentage of the total services to be performed. including capitalised leased assets, over their expected useful lives.

The Mvula Trust recognises revenue from rendering a service when: accounted for prospectively. The expected useful lives are as follows:

Class

Useful life 5 5

Leasehold improvements

5 4

Computer equipment

3

Computer software

2

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue shall be recognised only to the extent of the expenses recognised that are recoverable.

Service and maintenance revenue is recognised by reference to the stage of completion of the transaction at balance sheet date. Stage of completion is determined by services performed to date as a percentage of total services to be performed.

1.10 Taxation

1.11 Leases

94

the Mvula trust annual report 2014

the Mvula trust annual report 2014

95

The Mvula Trust Accounting Policies

The Mvula Trust Notes to the Annual Financial Statements

for the year ended 30 june 2014

for the year ended 30 june 2014

Accounting Policies (Continued) Operating leases – Lessee Operating lease payments under operating leases are recognised as an expense (excluding costs for

2. Property, Plant and Equipment 2014

1.12 Impairment of Assets

2013

Cost

Accumulated depreciation

Carrying value

Cost

Accumulated depreciation

Carrying value

R

R

R

R

R

R

1 262 145

306 719

1 075 451

196 401

664 852

204 448

678 841

236 557

1 721 713

357 737

2 442 795

334 794

-

36 712

14 685

9 482

6 006

9 482

7 902

3 658 192

874 910

4 243 281

790 339

Opening balance

Additions Disposals Depriciation

impairment, it is not necessary to estimate the recoverable amount.

amount of the asset to its recoverable amount. That reduction is an impairment loss.

The Mvula Trust recognises the expected cost of accumulating compensated absences when the employees render a service that increases their entitlement to future compensated absences. The Mvula Trust measures the expected cost of accumulating compensated absences at the undiscounted additional amount that The Mvula Trust expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period.

Leasehold Total Reconciliation 2014

occur.

1.14. Project Disbursement

1.15. Related Parties

-

Leasehold Total

R

R

Total

R

R

R

196 401

215 449

236 557

62 710

334 794

270 181

357 737

14 685

-

-

7 902

-

790 339

548 340

306 719 -

204 448

-

6 006 874 910

Reconciliation 2013 Opening balance 151 096 147 735 273 450 22 027 Leasehold Total 96

the Mvula trust annual report 2014

Additions Disposals Depriciation 107 845 160 066 275 547 -

-

9 482

594 308

552 940

-

Total 196 401 236 557

-

334 794 14 685

-

7 902 790 339 the Mvula trust annual report 2014

97

The Mvula Trust Notes to the Annual Financial Statements

The Mvula Trust Notes to the Annual Financial Statements

for the year ended 30 june 2014

for the year ended 30 june 2014

Figures In Rand

3. Intangible Assets 2014

2013

Cost

Accumulated amortisation

Carrying value

Cost

R

R

R

R

Accumulated Carrying amortisation value R

R

Computer Software

506 875

44 391

466 721

32 645

Total

506 875

44 391

466 721

32 645

Reconciliation 2014

2014

2013

4. Contracts in progress

36 846 957

66 919 390

Contracts in progress at reporting date

36 846 957

66 919 390

93 431 497

44 303 493

38 006

80 389

7 827 560

7 663 548

223 601 136 912 101 384 138

181 416 70 688 51 360 674

41 460 594 43 154 371 8 816 532 93 431 497

19 978 532 90 000 24 234 961 44 303 493

7 972 44 127 651 44 135 623

5 594 39 907 371 39 912 965

94 025 176 48 251 419 1 046 230 143 322 824

108 546 955 29 900 893 474 839 138 922 687

3 500 000

1 800 000

5. Trade and Other Receivables Provision for doubtful debts

Opening balance

Additions

R

R

R

Computer Software

32 645

40 154

-

44 391

Total

32 645

40 154

-

44 391

Disposal Amortisation R

Total R

Reconciliation 2013 Cost

Additions

Disposal Amortisation

Total

Computer Software

23 511

35 698

-

32 645

Total

23 511

35 698

-

32 645

VAT Deposits Total Age Analysis of Trade Receivables Not past due date Past due 0-60 days More than 60 days Total 6. Cash and Cash Equivalents Cash on hand Total 7. Trade and Other Payables Trade Payables

Total 8. Provisions Provision for Bonus

98

the Mvula trust annual report 2014

the Mvula trust annual report 2014

99

The Mvula Trust Notes to the Annual Financial Statements

The Mvula Trust Notes to the Annual Financial Statements

for the year ended 30 june 2014

Figures In Rand

for the year ended 30 june 2014

2014

2013

Figures In Rand

2014

2013

18 169 869

1 262 930

429 189

363 434

62 987

20 039

9. Commitments Minimum lease payments due - within one year Total

Adjustment for: 3 128 684

2 064 250

3 438 067

1 963 077

6 566 751

4 027 327

Loss on disposal of PPE

1 700 000 10. Revenue

Administration fees

Total

975 628 247

889 038 185

9 260 538

10 628 396

25 632 188

6 209 174

4 400 137

35 208 673

33 843 129

30 072 433

2 147 460

3 340 077

72 248 859

54 020 776

561 093

498 215

400 781

336 870

Loss on disposal of asset

62 987

20 039

Amortisation

28 408

26 564

38 442 746

33 570 581

660 909

252 863

14 719

11 961

-

50 000

675 628

314 824

3 658 062

2 156 558

3 658 062

2 156 558

12. Auditor's Remuneration

Total

9 611 349

Total

1 153 089

15. Related parties parties:

11. Operating Expenses

Disbursement

Changes in Working Capital

Community Works Programme Ubuntu Sima / Ziphozethu Mathenjwa

-

8 856 393

TGR Attorneys / M Ratshimbilani

-

29 400

TGR Attorneys / M Ratshimbilani

-

29 400

Legal Fees

management and The Mvula Trust is responsible for programme administration. The Mvula Trust plays the role of

13. Investment Income

100

the Mvula trust annual report 2014

the Mvula trust annual report 2014

101

The Mvula Trust Notes to the Annual Financial Statements

The Mvula Trust Notes to the Annual Financial Statements

3 567 766

1 100 000

1 015 824

Total

1 451 941

of Trustees

41 660 3 526 105

1 100 000

1 015 824

41 660 1 410 281

Salary

Bonus

2013 the Mvula trust annual report 2014

Mabudafhasi Louise Colvin Zandile Gumede David Lefutso Ziphozethu Mathenjwa Silas Mbedzi

4 037 383 106 279 3 931 104

Buli Mokonotela Matodzi Ratshimbilani Deon Caeser Vundule Nhlakanipho Nkontwana Asivhanga Tshibubudze Tshivhase Vhonani Netsandama

2014

2013

Honorarium

Travel

Total Honorarium

-

-

-

-

-

-

Apr-93

-

20 500

-

20 500

2 200

-

2 200

Mar-05

-

26 000

-

26 000

May-11

-

16 000

1365

17 365

May-11

-

40 300

-

40 300

Aug-08

-

24 500

-

24 500

-

Travel

Total Registered Resigned

-

-

-

-

-

-

Aug-09

-

-

-

-

4 400

-

4 400

May-07

Jul-12

-

-

24 000

-

24 000

May-11

-

-

2 000

-

2 000

May-10

-

2481

8481

Apr-93

-

24 000

Aug-08

-

4 000

4 192

8 192

6 000

36 000

-

36 000

24 000

38 000

6 000

-

6 000

Mar-12

-

-

38 000

48 000

-

48 000

Mar 12

-

28 000 14 279

42 279

34 400

21 512

55 912

Mar-12

-

3 160

3160 233 300

25 358

258 658

151 000 21 631 172 631

Total

1 166 000 1 166 000 Goodenough Molefe -

1 295 278 53 278 1 242 000

1 576 105 53 001 1 523 104 Silas Mbedzi - CEO

Total Bonus Name - Executives (CEO ,

16. Directors' emoluments

Salary

2014

Matodzi Ratshimbilani TGR Attorneys

Ubuntu Sima

Company Name 102

for the year ended 30 june 2014

Antony

Ziphozethu Mathenjwa

Nature of the relationship - 'The board of Trustees doing business with the Trust’

for the year ended 30 june 2014

the Mvula trust annual report 2014

103

The Mvula Trust Notes to the Annual Financial Statements

ACRONYMNS AND ABBREVIATIONS

for the year ended 30 june 2014

17. Onerous Contracts

KZN

KwAZULU- NATAL

PDG

PALMER DEVELOPMENT GROUP

The situation above has resulted in an onerous contract which is a contract in which unavoidable costs of meeting the

Figures In Rand

Legal fees

2014

2013

-

158 452

-

14 700

-

22 658

70 690

12 833

DEVELOPMENT

ACRONYMNS AND ABBREVIATIONS

104

the Mvula trust annual report 2014

the Mvula trust annual report 2014

105

The Mvula Trust Non-Profit Registration Number: 005 – 110 – NPO Trust Registration Number: IT 1595/93 Contractor Registration Number: 117 441/ CIDB 6GB

Head Office

Address: 12th Floor, Braamfontein Centre, 23 Jorissen Street, Braamfontein, 2017 Johannesburg Po Box 32351, Braamfontein, 2017 Tel : 011 403 3425 Fax : 011 403 1260

Eastern Cape

Address: 2 Norvia House, Western Avenue, East London, 5201 Tel: 043 726 2255 Fax: 043 726 5967

Kwazulu - Natal (South) Address: 37 Esther Roberts Road, Glenwood, Durban, 4008 Tel: 031 201 5255 Fax: 031 201 5253

Kwazulu - Natal (North) Address: 18 Maxwell Street, Empangeni, 3880 Tel: 035 77 22 55 2 Fax: 035 77 22 531

Limpopo

Address: 9a Landdros Maré Street, Polokwane, 0700 Tel: 015 291 2405 Fax: 015 291 1270

Mpumalanga

Address: Suite 101 Brander Bldg, 16 Brander Street, Nelspruit, 1200 Tel: 013 752 2658 Fax: 013 752 2658

North West

Address: 60 Boom Street, Rustenburg, 0300 Tel: 014 592 5486 Fax: 014 592 2827

www.themvulatrust.org.za