MDDA

1
MDDA

• Presentation on Annual Report
• Portfolio Committee of Communications
• 22 October 2004

2
Mandate

• The MDDA should
• (C)reate an enabling environment for media
  development and diversity which reflects the
  needs and aspirations of all South Africans
• Redress exclusion and marginalisation of
  disadvantaged communities and persons from access
  to the media and the media industry
• Promote media development and diversity by
  providing support primarily to community and
  small commercial media projects
• (Preamble MDDA Act)

3
The MDDA Team

• Kanyi Mkonza (chairperson)
• Govin Reddy (Board member)
• Tony Trew (Board member)
• Libby Lloyd (CEO)
• Annand Chaytoo (Financial Manager)

4
First Annual Report (2003/2004)

• Financial report covers 13 months
• 1 March 2003-31 March 2004 (in agreement with
  AG)
• Narrative report covers period from first Board
  meeting January 2003 March 2004

5
Funding 2003/2004

• R10m (government)
• R3m rolled over from 2002/2003
• R7m 2003/2004 financial year

6
Highlights

• Have received an unqualified audit
• Kept administration costs low 69 dedicated to
  grants exceeding regulatory requirement of 65

7
Objectives for first year

• Build the institutional capacity of the Agency v
• Research needs v
• Publish regulations v
• Decide on grantsv
• Convert MoUs with partners and Minister into
  funding agreements (partly)

8
Reportback on objectives

• Building Institutional Capacity
• By end of March 2004
• CEO and staff employed
• Offices in Newtown
• HR Policies adopted
• Finance and procurement policies adopted
• Tender for IT issued
• Audit Committee shared with GCIS
• Tender issued for appointment of internal
  auditors
• Three year Business Plan developed

9
Organogram
10
Reportback on Objectives

• Have developed a strategic plan and mission and
  vision
• Vision
• Each and every South African citizen should have
  access to a choice of a diverse range of media
• Mission
• The MDDA is a development agency that will
  assist in building an environment where a
  diverse, vibrant and creative media flourishes
  and reflects the needs of all South Africans

11
Reportback on Objectives

• Research needs of Sector
• Research commissioned from HSRC/MediaWorks
• Finalised in December 2003

12
Reportback on Objectives

• Key research findings
• Print 2/3 small commercial
• Radio 91 community
• Media predominantly in urban areas and in English
• Electronic media faces lack of management skills,
  difficulties in attracting advertising, content
  not developmental.
• The print sector faces similar but also
  difficulties in distribution, high printing costs
  and verifying circulation

13
Reportback on Objectives

• Develop Regulations
• Draft regulations published for public comment in
  July
• Final regulations published in October
• Regulations set criteria for support
• Regulations set limits for admin budget
  allocation (35 yr in, 25 thereafter)
• Regulations to non profit (min 60), small
  commercial (min 25) and research (5)

14
Reportback on Objectives

• Decisions on Grants
• Developed funding principles
• Called for applications in November 2003
• Decided on applications in January 2003

15
Reportback cont

• Grants 2003/2004
• 7 Community radio projects
• 1 community print projects
• No small commercial electronic projects
• 2 small commercial print projects
• Total 10 projects

16
Reportback on Objectives

• Grant funding
• R3m earmarked (pending finalisation of actual
  budget items by applicants)
• R2.2 not specifically committed but applications
  being investigated by end of March 2004 amounted
  to R15.5m

17
Community Radio Partners (2003/04)

• Moletjie Community Radio - to build a studio -
  outside Polokwane (awaiting their appointment of
  contractors)
• Takalani Community Radio (Eastern Cape),
  Mentoring
• Radio Unique (Eastern Cape) Mentoring
• Radio Mams in Mamelodi and Khathorus Community
  Radio for running costs (currently involved in
  court challenge on licence)

18
Community Radio partners cont

• Radio Teemaneng in Kimberley for lightning
  conductor - installed
• Radio Vukani Cala Eastern Cape running costs and
  infrastructure contract finalised

19
Community Print Partners (2003/04)

• High School Media Project - Just Jy - Cape Town
  training of students over a year first
  disbursement made

20
Small Commercial Print Partners (2003/03)

• Free State News - training and equipment
• Big News - national magazine for SMMEs - research

21
Reportback on Objectives

• Funding agreements
• Minister signed MoUs with major print and
  broadcasting companies to fund MDDA
• MDDA Board tasked with converting these to
  funding agreements
• By end of Financial year these were not yet
  signed.
• However drafts had been developed and were in
  process of being negotiated.

22
Auditor Generals Report

• Three matters raised
• Fixed assets not numbered though register in
  place
• Creditors reconciliations not prepared monthly
• Internal audit tender out but no appointment

23
Progress on matters raised

• Fixed assets all are labelled
• Monthly credit recons systems now in place and
  monitored by Exco
• Internal Audit Sizwe Ntsaluba appointed. Audit
  Plan finalised

24
Rollover

• Treasury approved the rollover of funds (due to
  commitments and applications)
• Currently have allocated all funds rolled over
  for grant funds.
• Have expended nearly all other funds rolled over
  (for IT systems, office furniture etc)

25
Achievements 2004/2005

• What has the MDDA achieved in current financial
  year?
• Streamlined grant making process
• Have finalised grant making systems and
  procedures
• Awarded further grants
• Have committed nearly all current grant funds
  (about R350 000 remaining)
• Have supported 35 different projects in total

26
Progress to date

• Capacity Building
• Have hosted workshops on advertising and
  marketing with AMF and AMASA in Johburg, Cape
  Town and Durban (300 participants)
• Have established a database of mentors to coach
  MDDA projects and beneficiaries and ensure skills
  transfer and effectiveness of projects
• Planning provincial workshops on resource
  mobilisation for non profit and small commercial
  media.

27
Progress to date

• Have finalised all funding agreements with print
  and broadcasting partners
• Have appointed internal auditors and developed a
  risk management strategy

28
Progress to date

• Partnerships
• MDDA is focusing on establishing partnerships to
  build media diversity
• Have partnerships with funders to assist in
  capacity building
• Have made links with AMASA and AMF to assist in
  addressing challenges in accessing advertising
• Have partnerships with other funders i.e. Open
  Society Foundation, Department of Communications
• Forming links with Pan South African Language
  Board, National Film and Video Foundation etc

29
(No Transcript)
30
The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency The Media Development and Diversity Agency
Income Statement Income Statement Income Statement Income Statement Income Statement Income Statement Income Statement Income Statement Income Statement Income Statement Income Statement Income Statement
for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004 for the 13 months ended 31 March 2004

                       
  2004  
    Notes               R'000  
   
  Gross revenue 6 10,000  
  Grants costs 7 (3,023)  
  6,977  
  Operating expenses 8 (3,155)  
  Surplus from operations 3,822  
  Investment income 587  
  Retained income for the period 4,409  
                       

31
(No Transcript)
32
Conclusion

• Thank you