National Lotteries Board

NATIONAL LOTTERIES BOARD

Presentation to Portfolio Committee on Arts & Culture

Presentation Outline

Regulatory Framework Governance Structure Functions of the Board Functions of the Distributing Agencies Strategic Objectives of the NLB Strategic Objectives of ACENH Funding Beneficiary Categories Strategic Focus Interventions: Equitable Distribution Impact of Funding Allocations per Province & Sector Questions/Discussions

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Regulatory Framework The National Lotteries Act establishes the

National Lotteries Board Sets up the process for awarding the

licence Establishes the National Lottery

Distribution Trust Fund (NLDTF) Sets up the process of Distribution Sets up process for Monitoring &

Regulating Private & Society Lotteries Promotional Competitions

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Gidani

NLB

NLDTF

DACharities

DAArt & Culture

DASport

DARDP

DAMisc

28%45

%

22

%

5%0%

Weekly transfer

CentralApplications

Office

REGULATORMonitors activitiesthrough Licence

NGOsCBOsApplications

Governance..Structure

Operates the National Lottery

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Functions of the Board

Advise the Minister on the issuing of Licence/s on the percentages allocated to good causes on the efficacy of Legislation related to Lotteries

Protection of Players Maximize proceeds to good causes Administer NLDTF Monitor & Regulate Other Lotteries Manage the Central Applications

Office

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Functions of Distributing Agencies Appointed by the Minister of Trade &

Industry for a period of 5 yrs Develop criteria and guidelines for

allocation of funding as directed by the Minister

Adjudicate applications for funding Review project progress-and site

visit reports

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Strategic Objectives of the NLB

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Improve effectiveness of funding from the NLDTF

Strengthen Compliance and Regulation

Explore Alternative Revenue Streams for NLDTF

Improve the Image and Publicity of the Board and NLDTF

Improve Governance

Strategic Objectives of ACENHDA

support for initiatives designed to protect and promote traditional knowledge and cultural expressions

promotional work of arts and craft , literature, theatre, music , dance and festivals.

development and preservation of cultural heritage and environment.

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Beneficiary Categories9

NGO’s Section 21 Companies Non-Profit Trusts PBO’s / CBO’s Universities Parastatals Municipalities Schools

Strategic Focus10

Disabled people and women: the sector has identified this as a major area that needs funding, given inter alia the fact that women and the disabled have contributed in the sector equally as their counterparts over the past few years

Equitable distribution: Attempts to ensure 50/50 rural/urban split have been intensified-hampered by large number of non-compliant applications in rural areas

Interventions to foster equitable distribution

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National Road shows [capacity building workshops]

Regional Offices roll-out Partnerships New Regulations published in July

2010 which prescribes minimum allocation of 50% to identified priority areas [with big emphasis on rural areas]

Impact of Funding12

Total allocation to date for 2010/2011: R766,941,172.94

Disbursed to date (2010-2011) : R875,330,444.79 Most of the funding still goes to what was

previously known as the hubs of Arts and Culture as Gauteng, Western Cape and KZN.

With the latest NLDTF regulations of 20 July 2010 the DA is putting more effort to fund provinces with less allocations

Legacy project for 2010 FIFA World Cup have been funded up to R166,960,959.77 for projects within the Sector

Allocations: 1Apr ‘10- 3 Feb ‘11

ProvinceProvincial Spread (%) Provincial Spread (R)

     Eastern Cape 7% R51,644,912.89

Free State 1% R 8,037,469.28Gauteng 34% R259,445,159.92

KZN Natal 11% R 86,800,830.79Limpopo 2% R 15,628,181.00

Mpumalanga 3% R 26,808,666.40Northern Cape 0.5% R 4,483,128.11

North West 0.4% R 2,778,679.70Western Cape 20% R 60,346,459.00

Other calls 22% 166,960,959.77     

 Total 100% R 766,941,172.94

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Challenges..distribution of funds Equitable distribution First come, First served

[adjudication] High decline rate Lack of/Inadequate impact

measurement Operational model Turnaround times

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QUESTIONS/DISCUSSION15