Transformation, Gender and the media Dialogue.ppt

Transformation, Gender and the media Dialogue

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 √
Research needs √
Publish regulations √
Decide on grants√
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
Board
Finance Manager
Annand Chaytoo
Chief Executive Officer
Libby Lloyd
Financial Administrator
Executive Secretary to CEO and Board
Penelope Dlamini
Project Manager : Electronic Media
Harry Letsebe
Project Manager: Print Media
Fana Bagananeng
Project Manager Research and Development
Farhana Goga
Project Administrator

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 SMME’s -
research

21. Reportback on Objectives
Funding agreements
Minister signed MoU’s 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 General’s 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. Notes R'000
Assets
Non - current assets
Plant and equipment 2 375
Current assets 7 364
Receivables and prepayments 3 23
Cash and cash equivalents 4 7 341
Total assets 7 738

Equity and liabilities
Retained income 4 409
Current liabilities 3 329
Trade payables and accruals 5.1 311
Grants accrued 5.2 3 018
Total equity and liabilities 7 738

Balance Sheet
as at 31 March 2004
The Media Development and Diversity Agency
31 March 2004

30. The Media Development and Diversity Agency
Income Statement
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. 2004
Notes R'000
Cash flow from operating activities
Net surplus for the period 4 409
Adjustments for:
- Depreciation 19
- Interest received ( 587)
Operating surplus before working capital changes 3 841
Working capital changes 3 306
(Increase) in receivables ( 23)
Increase/ in payables 3 329
Cash generated from operations 7 147
Net cash inflow from operating activities 7 147
Cash flow from investing activities
Interest received 587
Additions to property, plant and equipment ( 394)
Net cash inflow from investing activities 194
Cash flow from financing activities
Decrease in long term liability -
Net cash outflow from financing activities -
Net increase in cash and cash equivalents 7 341
Cash and cash equivalents at beginning of period -
Cash and cash equivalents at end of period 7 341
The Media Development and Diversity Agency
Cash flow statement
for the 13 months ended 31 March 2004

32. Conclusion
Thank you