Grant allocations for the current year amounted to R1.310 billion and a total of R1.557 billion was paid to beneficiaries across all sectors. The liability reached an all-time low of R285 million, a decrease of 51% from the previous year through the efforts of applying the Grant Finance Management Policy and the fast tracking of payments.
The NLC is committed to ensuring that beneficiaries of the NLC grant are self-sustainable and are not reliant on the grants for survival. The fundraising initiatives by the beneficiaries are proof that beneficiaries are taking part in ensuring self-sustainability. Revenue made from these initiatives increased by 156% to R52.7 million during the year under review.
The NLC continues to monitor and maintain strategic reserves of R1.5 billion as a contingency fund to fund operational expenditure of the NLC and grant allocations for good causes. The reserves for the current financial year amounted to R1.7 billion.
The NLC remains committed to service delivery and the upliftment of communities through the payment of our suppliers within 30 days, supplier development programmes, localising procurement and ensuring that our beneficiaries are paid timeously within the legislated timeframes. During the year under review the NLC managed to pay its suppliers in 13 days on average, 99% of procurement was localised within the provinces and 88% of the NLC procurement was done with BEE companies.
The NLC is mindful of the current economic realities and have intensified its processes to improve efficiency in expenditure. We have observed with serious concern that shuttle service spending, to and from the airport, is extremely high, therefore cost saving measures we recommend are:
Supply Chain Management controls and processes continue to be in place and are improved upon. The NLC and NLDTF did not incur irregular, fruitless and wasteful expenditure in the current financial year. This is mainly attributable to the culture which is inculcated in the organisation which seeks to foster full compliance with laws and regulations and therefore zero tolerance approach to incurring irregular, fruitless and wasteful expenditure. This culture is also encouraged during the continuous educations and awareness sessions held with all divisions of the organisation.
The NLC continues to focus on clean administration and once again received clean audit opinions from the Auditor General for the Consolidated financial statements of the NLC and separate financial statements of the NLC, NLDTF and NLPT.
Ms Xolile Ntuli CA(SA)
Chief Financial Officer
