S - Abraham Kriel Childcare

Transcription

my anker van hoop
my anker van hoop
my anchor of hope
my anchor of hope
Abraham Kriel
Childcare
Abraham Kriel
Childcare
Statement of commitment
Credo
We testify and joyfully proclaim our unwavering faith in and
dependence on our Lord Triune, the only true God and our
sole saviour.
“Our commitment to you, our funders and stakeholders, is to
maintain appropriate governance structures to support best
practice when it comes to child care and development; to ensure
that resources entrusted to us as custodians thereof are used in
the most cost effective way, only for the purpose it was meant for,
and in the best interest of the children entrusted to us.”
We are secure in the knowledge that He is an omnipotent
and omniscient God, the same tomorrow as He is today and
in years gone by.
We trust in His guidance and rely on His support, grace and
covenants.
Vision
Our passion is to ensure the optimal development of traumatised children in need of care.
Board
committees
oversee key
functions
Approved
policies
and
procedures
Mission
Internal
control
systems
Values
Governance
structures
King III
Management
skills appropriate
for executing
strategy
Risk
management
system
External
audit
From a Christian frame of reference, to care for, develop, empower
and reintegrate traumatised children in need of care (as defined by
the Children’s Act) and where needed, their families through appropriate care models and therapeutic programmes, to enable them to
function independently and to contribute to society.
Internal
audit
Preamble:
We honour the Christian values as it is set out in the Bible as the Word
of God and we communicate our love, faith and hope to the children
placed in our care.
Therefore our values are:
The best interest of the child
Pride in our organisation
Respect for different cultures
Positive attitude towards our work and people
Acknowledgement of human worth and potential
Effective communication
Teamwork
Integrity (honesty, transparency, consistency)
Board of Directors
Mr G W le Roux (Chairperson)
B.Sc. (Rand)
Mr L B Mlotshwa (Vice Chairperson) BA (Psych) HED, MBA
2
Mr P S Momsen (Chief Executive)
B.Diac, Certificate in Business Admin and Management
Mr J D de Villiers
C.A(SA)
Mr I J de Villiers
M.Com C.A(SA)
Mrs I Fourie
CA(SA)
Mrs S M Hay
BLC, LLB, LLM HDip: Labour Law
Rev M S Makgale
Diploma in Theology, Deed of Admission as Minister of Region, BA Honours, Certificate
Youth Ministry, Certificate: Management Programme
Mrs C Seefort
Diploma in Pre-primary Teacher, BA Child Psych, Diploma: Human Resource Management
(University of Johannesburg), Sustainable Development Level 1,2,3 (Wits University),
Municipal Governance (University of Pretoria), Honours: Social & Economic Transformation
(Rhodes University)
Rev P M Strydom
BA, DB, Dip Theol, MDIV
Ms K J Tshabalala
Bachelors in Ministry with Christian Family Church International Bible School: 2010 Office
Administration Diploma with Damelin: 2002
Table of contents
4
About this report
Integrated reporting approach
Assurance, comparability and restatements
Contact point for the report
Forward looking statements
Approval of the integrated report
Chairman’s message
Performance features
6
Organisational overview and business model
7
Our history
What we do
How we do it/ Business model
Capitals wish list
17
Abraham Kriel Childcare in context
Our key stakeholders
Key partnerships
Our focus areas
Materiality
Risk management
Strategic dashboard
23
Performance review
Report from the Chief Executive
Operations overview
Financial sustainability
Attraction and retention of critical skills
Sustainability of service offering
Brand awareness
Standard of child care
Corporate Governance and remuneration
27
Corporate governance
Remuneration
Report by the Audit Committee
30
Financial statements
31
Glossary
38
Contact details
39
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About this report
Integrated reporting approach
This Integrated Report for the year ending 31 March 2013 is the second such report compiled by Abraham Kriel Childcare. In 2012 we
anticipated that the second report would mature into a report closer to the requirements of the Integrated Reporting framework.
The objective of this report, our primary report, is to communicate
to stakeholders the material issues that drive our business strategy.
In setting the strategy which responds to the material focus areas
for Abraham Kriel Childcare, we have considered the feedback from
our stakeholders, as well as risks and opportunities identified as part
of our risk management system.
We used the elements and principles of the International Integrated
Reporting Council’s (IIRC) Consultation Draft framework to compile
this Integrated Report. In using these guidelines we strive to optimise the appropriateness of the report for use by our external stakeholders in the regulatory and donor environment. The full financial
statements have been compiled in accordance with International
Financial Reporting Standards. The abridged financial statements included in this Integrated Report have been compiled in accordance
with IAS 34 (AC127), Interim Financial Reporting (Updated to January 2008).
Assurance, comparability
and restatements
Independent assurance was obtained from external auditors PricewaterhouseCoopers Inc (PwC) in respect of financial statements
from which the financial information in this report was extracted.
Non-financial information, such as key performance information and statistics in respect of beneficiaries, were not verified
independently but extracted from the Abraham Kriel Childcare beneficiary database. Given that this information will feature in future
Integrated Reports we will strive to subject it to a combined assurance approach moving forward.
Key performance indicators on page 6 can be compared with corresponding 2012 indicators which serve as base year information.
Targets associated with strategic focus areas are not comparable to
previous periods.
There were no restatements in the current financial period.
Contact point for the report
For any questions or feedback regarding this integrated report or
its contents, please contact Mr. P S Momsen, Chief Executive at
+27 11 839 3058/60 or email psm@abrahamkriel.org
Forward looking statements
Certain statements in this report are interpretations about the
future which Abraham Kriel Childcare believes are reasonable
and are based on information available at the date of the report.
Outcomes could however differ materially as a result of factors
4
such as economic and market conditions, as well as the regulatory environment, including evolving interpretation and application
of welfare service and funding policies. These statements should
therefore not be regarded as guarantees for future performance.
Approval of the integrated report
The Board, assisted by the Audit Committee, is ultimately responsible for overseeing the integrity of the Integrated Report. The directors confirm that they have collectively reviewed the content of the
integrated report and believe it addresses the material issues and is
a fair presentation of the integrated performance of the group. The
Board approved this integrated annual report on 16July 2013.
Chairman’s message
Few of our readers need an introduction to the deteriorating circumstances of our social environment. As I write this message the
need for professional care for our children is escalating, while those
who reach out with financial and material support are dwindling at
an alarming rate. Of course, our economic situation plays a decisive
role while disposable income in households reduces at regular intervals.
children. As a management team, in collaboration with external
professional consultants who sponsor their professional services,
we will continue to do our forward planning and call on society for
support to ensure that we need to have no fear for the future. As a
Christian organisation we will continue to find solutions to strike a
balance between human, financial, natural and other capitals as we
have done for 111 years.
Our corporate donors have to satisfy shareholder interests and,
against increasing international and local competition, they have
to review margins. As a consequence, with some organisations, expenditure for social engagement is considered a ‘nice thing to do’,
rather than forming part of a business strategy and in support of
building on the moral fabric of society.
George le Roux
Chairman
I am deeply concerned about the lack of financial support that we
receive from all sectors of society as our beneficiaries, based on
percentages, reflect perfectly on the population distribution of our
country. Abraham Kriel Childcare has kept pace with the requirements of transformation, albeit that our donor statistics do not reflect on this. The challenge for the immediate future is to sustain our
services and to stay focused on providing care for large numbers of
traumatised children that are being referred to us daily through official channels. The history of our organisation speaks of the professional and trusted application of funds that are underscored by the
principles of outcomes-based initiatives.
I would like to thank our stakeholders for their continued support in
difficult circumstances. This integrated report reflects on our gratitude of the manner in which many citizens and companies embrace
the objectives of Abraham Kriel as a childcare institution. A special
vote of thanks also goes to all the employees for their unselfish efforts and undivided attention to serve in the best interests of the
55
Performance features
Key Performance Indicator
Target 2014
Actual 2013
Target 2013
850
878
750
793
Beneficiaries in residential care
programmes
290
306
240
286
R37.2
R37.8m
R37m
R31m
R100 000
(R485 112)
R1m
(R5.28m)
240
235
250
245
5400
4917
4600
4100
500
532
500
500
Per capita subsidy
R2500
R2200
R2420
R2200
Emergency reserve
R5.2m
R4.9m
R5.5m
R4.8m
Cash surplus available
(excluding emergency reserve)
-R0.2m
-R0.4m
R0.5m
R0.5m
Electricity consumption savings
5%
9%
5%
0
Water consumption savings
2%
15%
5%
0
Number employees trained
176
224
145
129
R170 000
R187 000
R170 000
R151 898
4*
2
4
2
Gross revenue
Operating surplus/ (deficit)
Number of employees
Total active donors
New donors
Training spent
B-BBEE Contributor level
* B-BBEE contributor level expected to be 4 due to AKC to be measured under generic
scorecard, as opposed to current measurement under QSE scorecard.
6
Base 2012
Beneficiaries in community care
programmes
Organisational overview and
business model
Our history
Abraham Kriel Childcare was officially opened on 4 September 1902, with 7 orphans in its care.
At the time it offered a vital refuge for children orphaned in the South African War. The need
was enormous and numbers grew quickly to 200 children and beyond.
In 1908 a sister institution, the Maria Kloppers Children’s Haven opened its doors and took care
primarily of unwanted babies.
By the 1930’s the Langlaagte institution had more than 900 children in its care. To relieve the
pressure on the facilities some boys were accommodated on farms to learn farming.
As a result of the large numbers, the need to decentralise became increasingly urgent. Finally
in the 1950’s there was some relief when new children’s homes were opened, first in Potchefstroom in 1956 and then in Nylstroom in 1959.
Until 1980 these three children’s homes were managed as one, but when the Transvaal Synod
of the Dutch Reformed Church restructured to form four different synodal areas, the three
homes became independent of one another.
In 1994 Abraham Kriel Children’s Home in Langlaagte and the Maria Kloppers Children’s
Haven in Yeoville amalgamated.
This was followed in 1995 by Abraham Kriel Childcare taking over the management of the Emdeni Children’s Home in the Soweto township of the same name.
Once again the campus in Langlaagte faced the issue of decentralisation. The numbers of children per house unit were very high and the Langlaagte environment had become industrialised. The ideal to establish satellite houses where children can grow up in an environment that
more closely resembles a normal household was implemented from 1995. Today seven such
satellite houses are in existence across Gauteng.
By 2003 we were well set to face up to our second century in existence. This century brought
a new wave of orphans to the South African environment. This time the challenge was caused
by the HIV/AIDS pandemic and Abraham Kriel needed to respond to the need for care from
thousands of orphaned children in very poor communities.
Child and youth care centres would not be the answer as the need was simply too widespread
and the country could not afford the number of places that would be required in homes.
The solution was a home based care programme in partnership with Steinhoff International.
Over time new programmes were added and today there are 400 children in Soweto and 150
children in Westbury benefitting from these programmes.
7
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What we do
Abraham Kriel Maria Kloppers Children’s Home NPC, trading as
Abraham Kriel Childcare, is a non-profit company and a registered
Public Benefit Organisation. The organisation operates under and is
regulated by the provisions of the Children’s Amendment Act, Act
41 of 2007. We operate in the heart of the Gauteng Province, the
province with the highest population growth rate resulting from
the influx of people from neighbouring provinces and countries,
with a population totalling 12 728 400 people. We provide hope for
more than 1100 children and young people who have been exposed
to trauma and the devastating effects of poverty, HIV AIDS, abuse,
abandonment and neglect.
Our approach to caring for the children and young people is three
pronged; residential care, community care and development programmes. We are very aware of the need for sustainable intervention to reverse the cycle of malnutrition, dependency, child-headed
households, poor education, and lack of skills and feelings of hopelessness.
The need for organisations such as ours is indeed great. The current
estimation is that South Africa is home to some 2 million orphans of
which only 10% is reached through programmes such as ours.
Profiling our beneficiaries
Residential care
Total number of beneficiaries
Boys
Girls
49
49
3636
6969
5959
4040
53
53
Langlaagte Campus
Satellite Homes
Langlaagte Campus
Maria Kloppers Campus
Satellite Homes
8585
128
128
9393
Langlaagte Campus
Satellite Homes
Age distribution
Langlaagte Campus
10
10
Satellite Homes
3434
3232
45
8484
0-6 years
11
1515
45
14- 18 years
6-13 years
18+ years
0-6 years
141
12
6-13 years
14- 18 years
18+ years
Total Residential Care
22
27
27
59
59
1313
5858
8
0-6 years
6-13 years
14- 18 years
18+ years
141
141
0-6 years
79
79
6-13 years
14- 18 years
18+ years
School distribution
Langlaagte Campus
22
10
10
4
Satellite Homes
13
13
5
3
11
1010
29
5
29
3
34
34
65
65
Grade 1-7 Public school
Impact education Langlaagte
Special education
Students
45
45
Education for handicapped children
Remedial education
Pre-school
Special education
Students
Remedial education
Pre-school
Total Residential Care
11
11
4444
59
59
5
5
12
12
33
33
5
63
63
20
53
20
3
58
58
4040
65
65
Special education
Students
Remedial education
Pre-school
Special education
Students
Remedial education
Pre-school
Community services
49
49
Girls
51
51
79
79
Boys
41
41
7575
123
123
170
140
140
170
74
74
7676
Johanna Malan ECDC
AK Family Care Westbury
Emdeni Drop-in Centre
Zola/ Steinhoff Extended Family Programme
Emdeni Skills Development Centre
Johanna Malan ECDC
100
100
120
120
198
198
310
310
150
150
Johanna Malan ECDC
9
Age distribution
Johanna Malan Early Childhood
Development Centre
Zola/ Steinhoff Extended Family
programme
10
10
41
41
7979
0-3 years
4-6 years
15-18 years
10
10
7272
111
111
6161
7-11 years
18+ years
12-14 years
0-3 years
4646
4-6 years
15-18 years
7-11 years
18+ years
12-14 years
99
46
46
16
16
7
10
55
6
18
31
2424
28
0-3 years
4-6 years
15-18 years
7-11 years
18+ years
12-14 years
0-3 years
4-6 years
15-18 years
198
198
0-3 years
10
4-6 years
15-18 years
7-11 years
18+ years
12-14 years
7-11 years
18+ years
12-14 years
School distribution
Johanna Malan Early Childhood
Development Centre
Emdeni Skills Developments Centre
22
22
33 33
3838
50
50
96
96
4242
37
37
Grade 000
Grade 00
Grade R
IT skills
Catering skills
Hydroponic
Tiling and painting
34
34
38
38
1 11
1 11
55
6
1
5
5
5
9
9
5
7
52
52
7
6
1
19 19
34
34
32
32
Grade 1-4
Grade 8-12
Remedial education
Pre-school
Grade 5-7
Skills training
Special education
Students
Not in school
Grade 1-4
Grade 8-12
Remedial education
Pre-school
Grade 5-7
Skills training
Special education
Students
Not in school
Zola/ Steinhoff Extended Family
programme
44
13
7 33 13
18
18
89
7
89
98 98
78
78
Grade 1-4
Grade 8-12
Remedial education
Pre-school
Grade 5-7
Skills training
Special education
Students
Not in school
11
How we do it - Business model
MARIA KLOPPERS
SATELLITE HOMES
JOHANNA MALAN
EARLY CHILDHOOD DEVELOPMENT CENTRE
CAMPUS
B
93
B
85
B
120
E
23
E
38
E
8
V
63
V
16
V
3
R21
1
M1
M11
3
M1
Edenvale
R24
Roodepoort
R21
12
Benoni
Johannesburg
3
M2
M1
Boksburg
Germinston
17
Johannesburg
South
Soweto
12
17
Alberton
R59
3
12
Lenasia
LANGLAAGTE CAMPUS
12
SKILLS DEVELOPMENT
ORPHANS & VULNERABLE
CHILDREN CARE
B
128
B
198
B
560
E
55
E
11
E
43
V
91
V
1
V
35
External factors impacting ABRAHAM KRIEL CHILDCARE:
HIV/AIDS • Crime • Substance abuse • Unemployment • Poverty
• Economic climate • Government policy
CORE SERVICE
G
30%
ies
cilit
RNM
OVE
a
14 F
Protect
PREVENTION
SERVICES
• Early childhood
development service
Care
ENT
EARLY INTERVENTION
SERVICES
•Home care
•Drop-in centres
•Daily meals
•Material support
•Access to grants
•Skills development
Treat
FUN
G
DIN
Develop
Train
PROTECTING VULNERABLE
CHILDREN
RS P
ART
ONO
SUPPORT SERVICES
Approved admission
criteria
Finance
Marketing
Administration
Human Resources
Maintenance
STATUTORY SERVICES
• Holistic care
• Protection
• Therapeutic Programmes
• Developmental Programmes
• Recreational programmes
DEVELOPING AND
REINTEGRATING
CONTRIBUTING
INDIVIDUALS INTO
SOCIETY
ERADICATING POVERTY
70%
D
235
Emp
loye
es
NER
S AN
DC
HUR
CH
FUN
DIN
G
Reintegrate
SERVICING OUR
CONSTITUTION
“Every child has the right
to..
•Appropriate alternative
care
•Basic nutrition, shelter
•Basic health care and
social services
•Be protected from
maltreatment, neglect,
abuse or degradation”
INTERNAL FACTORS IMPACTING ON ABRAHAM KRIEL CHILDCARE:
Organisational values • Faith base • Dedicated emloyees
• Governance structures • Policies
RESIDENTIAL CARE
COMMUNITY CARE
LONG TERM
BUSINESS PARTNERS
V
B
E
VOLUNTEERS
BENEFICIARIES
EMPLOYEES
13
How we do it
External environment
In an environment influenced heavily by massive unemployment,
poverty, high prevalence of HIV/Aids, alcohol and drug abuse and
moral degeneration there is bound to be a high prevalence of dysfunctional families and parentless families, resulting in very high
numbers of children in need of care. In South Africa, residential child
and youth care facilities cannot cope with the demand for services
caused by the HIV/Aids pandemic. The response of the industry was
to provide non-residential care services in communities for children
affected by HIV/Aids. Only when the situation of a specific family
warrants intake into a residential facility, is that option executed.
Inputs
Financial capital
Funds to care for our beneficiaries’ daily needs are at an all-time
premium. The procurement of funds is dependent on grants from
the public sector and largely on donations from the private sector.
Managements of childcare organisations have to delve deep in the
innovation reservoir to create new revenue streams, to make ends
meet and to offset the effect of government funding not keeping
pace with inflation.
Notable trends in the 2012- 2013 figures are the reduction in state
and church funding, both a source of concern. The figure for short
term donor funding includes an R4.8m grant from the Lotto. This
will be capped to R2m in future in terms of new policies adopted
by the National Lotteries Board. The slight growth in partnership
funding is encouraging. Future strategy will focus on growth in this
source of revenue.
Income streams 2013
14%
14%
41%
41%
32%
Manufactured capital
Abraham Kriel Childcare provides its residential care services
through two campuses and seven satellite homes. The campuses
are situated in Langlaagte and Yeoville, with ten and four house
units respectively, as well as a baby unit at Maria Kloppers Campus.
The satellite homes, each catering for 10 children on average, are
situated in Benoni, the Bredell agricultural small holdings, Kempton
Park, Mayfair West, Risidale, Linden and Fontainebleau.
Some of the facilities are owned by Abraham Kriel Childcare, some
used by way of right of use and some leased at very favourable
rates. In respect of the infrastructure used at the Emdeni Drop-in
Centre and the Emdeni Skills Development Centre there is a need to
engage the owners, i.e. the Uniting Reformed Church in Southern
Africa in respect of the long-term development and utilisation of the
infrastructure. In respect of the infrastructure used by the Abraham
Kriel Family Care in Westbury we should note that the current temporary rented facilities are inadequate and that a more permanent
facility should be acquired. We make use of public medical services
and our medical infrastructure is limited to nurse’s rooms at the two
campuses. The facilities are generally in a good state of repair. The
satellite home in Mayfair will be renovated during 2013 with the assistance of its owners and a donor. The Langlaagte Campus is large,
has some aging buildings and is generally perceived to be costly to
maintain.
Intellectual capital
Abraham Kriel Childcare enjoys respect amongst its peers and the
Department of Social Development as a market leader in terms of
marketing and brand management, a strong reputation for good
governance systems, utilisation of technology and leadership in
the development and implementation of new services and programmes. The development of training material of a high quality for
child care workers, soon to be accredited by the HWSETA, places the
organisation in a position to earn meaningful third stream revenue.
Abraham Kriel Childcare keeps abreast of developments in the field
of childcare and therapeutic interventions through continuous research and exposure to external training opportunities.
10%
32%
3%
3%
10%
Income streams 2012
Donor funding (short term donors)
9%
Partnership funding (long term donors)
Partnership funding (long
term donors)
State funding
Church funding
Other income
9%
14%
Church funding
State funding
41%
39%
39%
32%
39%
10%
Other income
39%
4%
3%
4%
9%
9%
Partnership funding (long term donors)
Partnership funding (long
term donors)
Church funding
State funding
Other income
Church funding
State funding
14
Other income
Human capital
Abraham Kriel Childcare would not be able to do what it does without the commitment of its people. The total personnel are made up
of 235 people. This number is made up of 22 persons in managerial
and supervisory positions, 32 professionals, including social workers, social auxiliary workers, teachers, marketing and nursing staff.
Posts for social workers and social auxiliary workers are partly subsidised by the Department of Social Development. The largest component of 92 employees is the child care workers, assistant child care
workers and child care givers in community care programmes, the
latter subsidised by the Department of Social Development. There is
a component of 20 clerical employees, 12 drivers and skilled maintenance workers, and finally 57 employees in positions such as cleaning, unskilled maintenance and security workers.
Social and relationship capital
Abraham Kriel provides its services to children and young people in
need of care on behalf of the community and the state. All children
in our residential programs have been placed in our care by children’s courts as they have been either without care or in dysfunctional families posing a threat to their safety. The work of Abraham
Kriel Childcare is largely supported financially, but also by way of volunteer services by individuals and the corporate sector. Although
Abraham Kriel is an extension of the Dutch Reformed Church Welfare Service and maintains close working relationships with several
congregations, our work is also supported by congregations from
other denominations. The working relationship with the Uniting Reformed Church is very close and of critical nature. The Department
of Social Development actively oversees the services rendered by us
in terms of the Children’s Act and the Public Finance Management
Act.
Please refer to our stakeholder engagement section on page 17 for
more on our trusted relationships.
Natural capital
Abraham Kriel Childcare owns the land on which the Langlaagte
Campus and three of the satellite homes are situated. The Maria
Kloppers Campus and Johanna Malan ECDC are situated on land
owned by the Pro Ekklesia Utility Company on behalf of the Dutch
Reformed Church. The balance of facilities is situated on land owned
by bodies with which we have long term usage rights. We execute
an environmental protection strategy emanating from our desire
to make a meaningful contribution towards the protection of the
earth and its resources, thereby improving the sustainability of the
environment in which our successors will provide care and developmental services to children of future generations.
Activities
One of the primary concerns of Abraham Kriel Childcare is to
protect children from the effects of social dysfunction, abject
poverty, neglect, emotional, physical and sexual abuse.
Our social interventions are designed to support and protect
children within their families and to detect factors threatening their
safety. Whenever the situation in which a child lives becomes so dire
that it poses a threat to the child’s emotional or physical well-being,
the child is removed to alternative care through processes of the
children’s court.
Both in our home based care programmes and our residential services we provide care to children in the form of regular meals; medical and dental care; clothing; social, emotional and spiritual care.
Most of the children in our care have been traumatised; some severely and some to a lesser degree. We provide a range of treatment, counselling and therapeutic interventions through our social
workers; services outsourced to therapists, psychologists, psychiatrists, speech therapists, and occupational therapists; and through
the utilisation of state-run treatment services and facilities.
Our vision is to develop the full potential of the children and young
people entrusted to us. This we achieve through basic rearing of the
children, early childhood development, formal school and tertiary
education, skills development, and life skills development. Children
are also assisted and encouraged to develop their spiritual life, their
cultural and sporting talents, as well as their social skills.
Our training activities in respect of our beneficiaries extend to the
Emdeni Skills Development Centre where young people are trained
in life and business skills, catering, end-user computing, vegetable
tunnel farming, tiling and painting. Those with the appropriate skills
and motivation are also assisted to establish micro-enterprises to
earn a living.
The objective is always to reintegrate children, especially those removed from their families, with their natural families, or alternatively with substitute families in the form of foster or adoptive families.
If this is not possible, children are assisted with their reintegration
into society when they reach adolescence.
The above mentioned service activities in respect of our beneficiaries are underpinned by a range of supporting activities. In all our
programmes approved admission criteria guides the intake of beneficiaries. Our resources are administered to ensure sound record
keeping, knowledge preservation and regulatory compliance. Our
financial assets are administered meticulously to ensure proper application, recording and the availability of managerial and financial
accounting information. Our human resources function coordinates
our recruitment and training activities and ensures sound administration in respect of remuneration, benefits and statutory processes. Finally our assets in the form of land, buildings, facilities, IT infrastructure, vehicles and equipment are maintained to ensure efficient
operations and preservation thereof for future generations.
15
Outputs
Abraham Kriel Childcare provides services on three levels, i.e. prevention services, early intervention services, and statutory services.
Prevention level services operate at a level where there is no
detectable social dysfunction present in the families of the beneficiaries. An example of these services is the early childhood development services provided by Johanna Malan Early Childhood Development Centre.
Early intervention level services refer to circumstances where
families are under severe stress but they maintain a level of functionality that does not pose a dire threat to the children in that family. Our services through community care programmes are examples of these. These services are provided through home based
services and drop-in centres to HIV/Aids affected children, as well
as skills development services, and include material support and assistance to beneficiaries to access support grants administered by
the state.
Statutory level services refer to services to children that have
been placed in substitute care such as residential child and youth
care centres. These services include nutritional, recreational, therapeutic and developmental programmes.
Outcomes
Our mission statement reflects what AKC sees as an outcome for
this organisation: “From a Christian frame of reference, to care for,
develop, empower and reintegrate traumatised children in need
of care and where needed their families through appropriate care
models and therapeutic programmes to enable them to function independently and to contribute to society.” Abraham Kriel Childcare
has ensured we make a very tangible and life changing impact on
the children in our care.
16
CAPITAL WISH LIST
Funding capital requirements poses a formidable challenge when a
non-profit organisation is under constant pressure to generate sufficient revenue to service operational needs. Hence Abraham Kriel
Childcare is compelled to rely heavily on donor funding earmarked
specifically for capital needs such as the following:
Capital to develop new single gender campus for traumatised girls
(R20m)
Mini-buses to replace old vehicles (R1.75m)
Office facilities Westbury (R2m)
Training facilities Emdeni Skills Centre (R4m)
Garden wall to be replaced at Aasvoëlkop Satellite House
(R20 000)
Replacement of Maria Kloppers hall floor (R 30 000)
Computer hubs for staff development in information technology
(R40 000)
Smaller capital expenditure needs include equipment such as six new
desktop personal computers, five new laptop personal computers,
one new digital camera with video recording capacity, one small portable data projector, four teardrop banners with new branding, four
pull up banners with new branding, two branded gazebo’s, 1 new marketing exhibition stand, shelving for file storage, four typist chairs.
In order to sustainably resource operational activities, we adopted a
strategy of sourcing long term funding partners for services to traumatised children needing specialist services. We set a target of five
long-term funding partners of R400 000 per annum each for the next
financial year.
Abraham Kriel Childcare in context
Our key stakeholders
The Abraham Kriel Childcare management team defined the concept of sustainability as follows: “The ability to uphold and improve our
social services, financial resources, facilities and environment”. We are fully aware that our organisation is built on the relationships we have
with the stakeholders around us and who can impact our organisation. Although we consider the concerns of all our stakeholders, we have
presented in this report only the information material to the viability and success of AKC in the short, medium and long-term.
Stakeholder
Methods of engagement
What matters to them
Department of Social
Development, Region
Johannesburg and
Gauteng Province
Monthly, quarterly
and annual reporting
Ad hoc meetings
Ad hoc panel discussions
Ad hoc monitoring and
evaluation inspections
Assisting government to
execute its mandate in
accordance with the
Children’s Act
Compliance to regulations
i.t.o. PFMA*
Meeting targets i.r.o.
services provided and
beneficiaries
Application of funding
according to SLA’s
Department of Justice,
Southern Gauteng and
regional children’s courts
Children’s court cases
Criminal investigations
Reports to and court appearances in children’s court i.r.o.
extension of court orders
Best interest of child
Child’s participation
Involvement of parents in
proceedings
Procedural correctness
Donors
- Individuals
- Corporate SA
- Trusts & foundations
- Church congregations
Targeted for improved
brand recognition and
support:
- English speaking donors
- donors from the black
communities
Annual proposals to companies
Two appeals per annum to
existing individual donors
Ad hoc correspondence
Four printed newsletters
per annum
Ten e-newsletters per annum
Ad hoc personal visits by and
to donors
Two donor tours of AKC
services
Daily social media interaction
Ad hoc public media press
releases and public service
announcements
Ad hoc branding and
presentations at a minimum
of 6 events per annum
Preparation of children as
contributing members of
society when adult
Accountability
Cost-effectiveness
High reporting levels
Feeling involved
Direct experiences
Well-being of children
Impact of intervention
Tax and B-BBEE benefits
Link to focus area
R
S
R
S
* Please refer to glossary page 38
R
S
= Financial sustainability
= Sustainability of key services
= Standard of childcare
= Brand awareness
= Attraction and retention of
critical skills
Printing
Printing sponsored
sponsored by
by Lithotech
Lithotech Blesston
Blesston
17
Daily care services
Daily educational services
Daily therapeutic
interventions
Daily developmental
activities
Ad hoc one on one
interviews
Ad hoc group work
Social, behavioural and
life skills
Recreational opportunities
Obtaining an education
Physical care, including
health and protection
Psycho-social care in the
form of therapy
Skills development in order
to access employment
Support to access grants
Spiritual development
Children’s parents
Ad hoc visits to centres
Ad hoc interviews
Annual planning panels
Ad hoc telephonic
interaction
Ad hoc correspondence
Ad hoc interaction with their
social worker
Safety of their children
Good physical and
emotional care
Contact with their children
Access to their children
Feedback i.r.o. their children
Support with challenging children
Communities
Ad hoc meetings
Annual report
Ad hoc visits
Continuous committee
activities
Continuous volunteer work
Access to information
Quality care for children
Transparency
Involvement in services
Stewardship i.r.o. resources
Opportunity to serve
Business partners
Quarterly meetings
Annual proposals
Ad hoc visits to and by partners
Annual reports
Preparation of children to be
contributing members of society
when adult
Accountability
Cost-effectiveness
High reporting levels
Want to feel involved
Want direct experience
Tax and B-BBEE benefits
Media
Print media
Radio
Television
On-line media
At least six press releases p.a.
Publication of six industry specific
articles in appropriate media
Ad hoc television and radio appearances
Two public service
announcements on radio p.a.
Newsworthiness
Accuracy
Relevance
Timeliness
Trustworthiness
Employees
and Volunteers
Daily interaction
Continuous supervision
6 monthly performance
assessments
Continuous guidance and coaching
Training
Multi-professional team meetings
Better remuneration
Appreciation
Recognition
Significance
Access to training
Life balance
Empowerment
Guidance
Good communication
Children
R
S
= Financial sustainability
= Sustainability of key services
= Standard of childcare
= Brand awareness
18
= Attraction and retention of
critical skills
S
R
S
R
S
R
R
S
Key partnerships
A 10 year partnership with Steinhoff
International
Youthspace Mayfair: Abraham Kriel and Siemens Partnership restoring HOPE
March 2013 marked ten years since the Steinhoff Extended Family
programme was launched in Emdeni, Soweto. The programme is
the result of a very productive partnership between Abraham Kriel
Childcare and Steinhoff International.
The Steinhoff Extended Family Programme (200 children) and
the Emdeni Drop-in Centre (100 children) care for 300 HIV/AIDS
affected/infected children. Children receive freshly cooked
meals, fruit and bread every day of the year, as well as social
services from social workers and other professional people.
Children also receive household goods, clothes, shoes, school
necessities and most of all they receive guidance and development.
Daily basic care and education is provided for and after ten years
of sincere interest in the children, Steinhoff felt the need to develop young adults further. Since April 2013, Steinhoff is sponsoring the cost of the Tiling and Painting courses that are currently part of the curriculum at Abraham Kriel Childcare’s Skills
Development Centre in Emdeni, Soweto.
Partnering with AKC, SIEMENS strongly believes it is making a
tangible difference in the lives of those children living in a Youthspace house. With a cumulative investment of approximately
R 4 million since 2006, Siemens is able to provide a long term sustainable future for many children, who suffered extreme hardship
and deprivation, through the Youthspace model.
The difference between a funding partnership and a donation to a
good cause boils down to trust and time.
A partnership allows time in which to accomplish what is necessary.
This is particularly important when raising children as time is a basic
requirement for success. A partnership also allows trust and respect
to be built over time.
The best part of the Steinhoff partnership is the understanding of
the specific needs of a holistic service to children. The programme
attends to their social welfare as well as their schooling and the support services that underpin the programme’s day-to-day management.
Today, after 10 years, the programme grew from 15 to 300
beneficiaries; school attendance increased from 65% to 95%; further
investment was made into the Emdeni Skills Development Centre
which services a wider community; and this year 6 children are enrolled in tertiary education.
The group of boys privileged to be under the partnership care of
Siemens, experience this house as their home! With the loving supervision and spiritual leadership of the house parents as caregivers, the children are well fed and their physical, mental needs and
education and development are taken care of.
Siemens staff and management visit the house regularly to encourage and support the boys in their new found family, contributing to
their emotional well-being. Special occasions are made memorable
with outings and other treats to surprise the boys.
Long term investments are made in the educational potential of the
boys and in keeping their dreams alive. Siemens sets the example
with opportunities created currently for previous Youthspace boys.
By upgrading the house internally and externally Siemens is confirming their commitment to offer these boys a safe home they can be
proud of. This extensive maintenance effort include painting, repair
work to roof and gutters, paving, electrical re-wiring, make-over of
bathrooms and kitchen.
As an additional effort to ensure the safety of the children, Siemens
also came up with an initiative to purchase a brand new vehicle suitable for this big family of 13. Safe transport then spurred the committee to re-look the possibilities of a very first seaside holiday for the
boys. This took some commitment and extras from all involved but
what a pleasure to make this holiday dream come true. This serves
as yet another confirmation to these boys that anything is possible.
Within this partnership of Siemens and AKC it is a blessing to experience how all the refurnishing, repairing, renovating, all comes down
to restoring HOPE.
19
Our focus areas
Materiality
For the purposes of this report a matter is considered material if it is
of such relevance and importance that it could substantively affect
Abraham Kriel Childcare’s strategy, business model, or one or more
of the capitals it uses or affects in the short medium and long term.
Risk management
Management assessed risks that were identified in the annual strategic planning process by means of swot analysis and a risk analysis
workshops facilitated by KPMG. These risks were measured in terms
of inherent risk exposure, perceived control effectiveness and residual risk exposure. Through these assessments material risks were
identified and ranked for addressing by way of future actions to reduce the residual risk exposure. These actions are approved by the
Financial and Risk Committee and the Board. Management reports
are submitted to the Financial and Risk Committee on a monthly basis, and to the Board on a quarterly basis, in respect of progress with
the execution of the action plans.
Strategic dashboard
Focus area
R
Financial
sustainability
20
In context
Procurement of
funds is dependent on grants
from the public sector & largely on
donations from
private sector
Funding from the
State has not increased for the last
two consecutive
financial years
Economic downturn impacted
negatively on
corporate contributions
Stakeholders
Strategic objective
Government
Donors
Churches
Employees
Beneficiaries
Financial sustainability that will maximise
long term availability
of our services to
children in need of
care
Strategic enabler
Key performance
measure
Target
Structural improvement of governmental funding
Per capita &
programme grants
by Department of
Social
Development
Grants cover at least 35%
of actual costs
Formation of
quality funding
partnerships in
private sector
Successful
conclusion of long
term partnership
agreements
Expenditure of five
programmes covered
by partnerships
Optimisation of
revenue potential
of TK Hostel
Available room
capacity taken up by
students
60 students,
R800 000 net profit
Optimisation of
training services as
source of
revenue
Successful
accreditation
Training services
provided to City of
Johannesburg and
NPO Child & Youth
Care Centres
AKC accredited as training
service provider with
HWSETA
Revenue from training of
R900 000
Focus area
Attraction and
retention of
critical skills
Focus area
S
Sustainability
of key
services
In context
NPO welfare
organisation not
able to compete on
remuneration with
state, therefore
losing staff
AKC under increasing financial
pressure
Increasingly
difficult to attract
and retain critical
skills i.r.o. social
workers, childcare
workers and
managers
Employment Equity
requirements
contributes to
remuneration inflation rate
In context
Financial pressure
presents a risk to
AKC’s ability to sustainably maintain:
Wide spectrum of
services
Services to children with special
needs
Increasing number
of traumatised
children with challenging behaviour
Large Langlaagte
Campus, sparsely
funded through
donor funding
Stakeholders
Strategic objective
Employees
Beneficiaries
To ensure uninterrupted services of
appropriate standard
for the optimal
development of our
beneficiaries
Stakeholders
Beneficiaries
Employees
Donors
Community
Strategic objective
To address the
real needs existing
amongst children
in need of care in a
sustainable manner
Strategic enabler
Key performance
measure
Target
Attraction of
scarce skills
Competitive remuneration i.r.o. scarce
skills based on reliable benchmarking
I.r.o. social workers 100%
of Department of Social
Development entry level
salaries
I.r.o. child care workers
75% of Department of
Social Development entry
level salaries
Effective recruitment platform
Develop talent pool
of appropriately
qualified child care
workers and social
workers
Vacancies filled within one
month from talent pool
Reliable selection
and screening tools
Refined psychometric selection battery for CCW’s
New selection battery in
operation January 2014
Strategic enabler
Key performance
measure
Target
Special funding
dispensation for
specialised services to traumatised children
A realistic funding
model for specialist
service to traumatised children developed and adopted
by Department of
Social Development
Additional funding model
approved for 2014/15
financial year
Appropriate
facilities for
delivery of services to children
with challenging
behaviour
Single gender campus model developed and ready for
implementation
Model developed by
September 2013
Funders who are
willing to invest
in services to children with special
needs
Percentage of
operational cost
covered
Operational cost of at
least two units 50% covered by funding partners
by January 2014
21
Focus area
Standard of
childcare
In context
The responsibilities
of child care workers
becomes increasingly complex
Therefore a more
sophisticated skills
set is required from
child care workers
No appropriate
external training is in
existence for them
At graduate level social workers are not
sufficiently equipped
with appropiate
therapeutic skills
Focus area
Brand
awareness
22
The Abraham Kriel
Childcare brand has
always been better
known within the
Afrikaans speaking
community
Due to its long
history the brand is
fairly widely known
throughout South
Africa despite it
being operational in
Gauteng only.
As the social and
economic environment in South Africa
changed, so did the
beneficiaries served
by Abraham Kriel
Childcare and along
with that, the need
to build a wider support base.
Stakeholders
Strategic objective
Strategic enabler
Key performance
measure
To have well trained
child care workers
and social workers
sufficiently capable of
providing in the care,
developmental and
therapeutic needs
of children in need
of care
Complete accreditation of training material and
continue already
implemented training programmess in
order to provide appropriate accredited
training
Percentage child
care workers and
social workers appropriately trained
Stakeholders
Strategic objective
Strategic enabler
Key performance
measure
Beneficiaries
Donors
Community
To achieve high levels
of brand recognition
and support amongst
all communities
served by AKC
Branding elements
that are aligned
with current trends
Brand recognition
translated into
financial support
from Black and English communities in
which AKC operates
Child care
workers
Beneficiaries
HWSETA
Council for
Social Service
Professions
Department of
Social
Development
Target
80% of CCW’s equipped
with SETA accredited
qualification in childcare
at any given time
80% of social workers
equipped with appropriate therapeutic skills at
any given time
Accreditation to be completed by October 2013
Target
Minimum of 5 proposals
presented to Black business leaders
AKC branding displayed
at all Soweto based
Black Management
Forum events
10% of new funding
emanating from new
markets being served
i.e. Soweto business
leaders by 2014
10% of new
funding coming from
new support base within
the English speaking
public
Performance review
Report from the Chief Executive
The period under review is characterised by both positive and negative sentiments. The upside is that we stand firmly by our strategy
to sustain our long term objectives and commitment to deliver nothing less than excellence to our more than 1,100 beneficiaries, albeit that some services may temporarily be tailored to the most essential deliverables. The downside is that state grants have not been
increased for two consecutive years which has necessitated reviews
of operational expenditures. Furthermore we have been experiencing lower levels of corporate financial contributions compared to
the past.
Our challenge is therefore to convince existing donors for a larger
share of wallet and to secure funding from corporate companies
who have not been introduced to the services of Abraham Kriel as a
childcare organisation, one which has transformed the lives of thousands of children over many years. My team and I, with the support
of our Board members who have served the organisation in a most
professional manner on a voluntary basis, aim to secure five long
term corporate partners that will help us to sustain our momentum.
This will reduce spending much time and energy to canvass financial
and material support in the corporate domain on an ad hoc basis.
We will continue unabatedly to motivate government spending to
further accommodate children and young people in need of protection, care and development.
Although this Integrated Report is structured around strategic focus
areas for Abraham Kriel Childcare, it is important to make reference
to the fact that we value and manage environmental issues such as
fuel consumption, recycling and water and electricity consumption
in our daily activities. The installation of energy efficient solutions
that impact on our electricity and water consumption has resulted
in substantial savings and the initiatives will continue to cascade into
other areas.
Elements of business process integration, corporate governance
and sustainability are discussed in all executive and line management meetings and applied in organisational behaviour. Going forward, lifecycle trends which include growth, decline and renewal
will be observed meticulously. Since inception Abraham Kriel Childcare has had to face these trends. Through accelerated stakeholder
support, and as an organisation based on Christian values, we will
also get through these difficult times as we have frequently had to
do in the past.
Paul Momsen
Chief Executive
Children who are referred to our residential care have been well
managed with all relevant administrative protocols in place. The
Emdeni Skills Development Centre in Soweto continued with learning programmes, ranging from tunnel agriculture to information
technology with new modules in the pipeline, subject to funding.
Our programme for community services for children and HIV/Aids
affected children remains stable, while the Maria Kloppers Campus
continued to provide essential services for HIV/Aids infected and affected babies. Children in the education programme at the Impact
School on the Langlaagte Campus were successfully prepared for
mainstream schooling.
In light of the competitive situation amongst like-minded organisations, it remains difficult to source qualified staff at current remuneration levels, as many are attracted elsewhere. We need to reward employees according to the levels of their contribution and
continue to invest in their ability to ensure optimal development to
our beneficiaries.
23
Operations review
Financial sustainability R
The rendition of professional services to the beneficiaries of Abraham Kriel Childcare is naturally related to the acquisition and careful
application of financial resources. However, a major element of our
sustainability is not within our immediate control. The procurement
of funds is dependent on grants from the public sector and largely
on donations from the private sector.
Regrettably per capita funding from the State has not increased for
the last two consecutive financial years and thus remains at R2 200
per child per month. This has resulted in a greater reliance on the
other funding sources exacerbated by the economic pressures being felt by such sources.
For the year under review we recorded operating income of
R35 549 920 and operating expenditure of R36 035 032, resulting in
an operating loss of R485 112. After investment revenue of
R348 108, finance costs of R6 118 and proceeds of an insurance claim
of R1 677 037 in respect of fire damage to a house unit at Langlaagte,
the surplus before transfers is R1 533 915. A detailed Income Statement for the year ended 31 March 2013 is available on request.
The total cash and cash equivalents at the end of the year was
R5 473 441, compared to R6 019 507 in 2012, indicating a cash outflow of R546 066. Although our emergency reserve grew marginally
to R4.9m, the growth was smaller than the target of R5.5m.
The pressure on resources was modestly alleviated in July 2012 by
a Lotto award of R3.79m which covered some of our operating
expenses. However, official announcements have been made that
the maximum payment on any future successful application will be
capped at R2.0m. Although we have never regarded this external
source as a certainty, the aforementioned announcement has created an increased awareness of the need to source funding elsewhere.
Resulting from the challenges presented in growing our income,
we have been compelled to re-examine our current and projected
operating expenses, the objective being to tune such expenses to
known and realistic, but uncertain income. In that regard, we have
attempted to minimise the reduction of services without compromising quality. Therefore, with regard to services, certain identified
expenditure has been earmarked for reduction. This cut has in the
short-term, included the non-replacement of vacated posts and the
re-structuring of some of our operations. We are also closely monitoring the usage of electricity and water, the tariffs of which are not
within our control. We have found it gratifying to have measured
9% and 15% lower usage volumes respectively as a result of a widespread awareness and monitoring process.
24
In the longer term, if income from the state and other sources cannot be increased to a level compatible with the service level which
we offer, in order to maintain sustainability, further restructuring
will be unavoidable.
However, in order to be less dependent on state and unpredictable
sources of revenue we have set, as strategic objective, the target
to create third stream revenue to the value of R1.7m by increasing
occupancy of the Talitha Kumi Student Residence and by providing
training services to external organisations.
Although we are a non-profit entity, we constantly monitor cash
flow. Some of our aging vehicle fleet and computers will need replacement in the near future. This adds to financial pressures. We
are therefore compelled to place a greater emphasis on funding
such capital expenditure replacement from donations.
Attraction and retention
of critical skills
One should acknowledge upfront that the ability of Abraham
Kriel Childcare to attract people with the right skills in all positions
is somewhat hampered by its inability to compete with for-profit organisations and state institutions in terms of remuneration offered.
Although this challenge is neutralised partially by the fact that the
organisation has extremely loyal and dedicated individuals in key
positions, it does pose a risk for the long-term sustainability of the
organisation.
Abraham Kriel Childcare has made tremendous progress in terms of
employment equity, however mainly as a result of low turnover in
the ranks of senior managerial positions, the senior ranks are not
sufficiently reflective yet of the composition of society. We spent
R187 000 (target R196 000) on training activities. Our total number
of employees at year end was 235. This was 15 people less than the
expected number and is the result of posts not created as planned,
and vacancies not filled as part of current austerity measures.
There are many factors that influence the attraction and retention
of workers. One of them is competitive remuneration. Hence we
aim to compensate our social workers at a level equal to the entry
level of the Department of Social Development salary scales for social workers and our child care workers at a level equal to 75% of the
entry level of the Department of Social Development salary scales
for child care workers. Whilst compensation is important to our
competitive advantage, it is often not the single most important
factor to some of our recruitment successes. It has been proven
over time that potential candidates entering into our market should
not only possess the skills and the capabilities required for the job,
but should have a deep-rooted desire to make a positive difference
in a child’s life, and this is paramount when attracting the right candidate to our organisation.
The scarcity of core skills such as childcare workers within our industry cannot be over emphasized. There is a continuous battle to
attract and retain the right blend of childcare workers that can be
developed and trained to understand the needs and behaviour of
children in our care. One of the retention strategies that we are pursuing is the development of a talent pool. This will be essential in
building sources of talent available to the organisation.
Building and enhancing employee potential through training will not
only benefit employees, it will also support the organization in meeting its goals and objectives while focusing on the provision of excellence in childcare services.
AKC has a dedicated in-house training programme which is currently being accredited by the Health and Welfare SETA. The training
programme improves the skills set of our existing childcare workers
and will in future develop potential childcare workers in and outside
of the organisation as well.
Sustainability of service offering
S
Over the last decade Abraham Kriel Childcare diversified its service offering quite extensively in response to factors such as the
change in the profile of children in child and youth care centres; the
prevalence of children affected by HIV/Aids; donor preferences and
requirements; state policies; and cost aspects relating to different
kinds of services.
fected children were introduced; skills development and early childhood development programmes were introduced; and more costly
residential care services reduced in favour of more affordable community service programmes.
The past year we provided services to 306 children in our residential
programmes and to 878 children and young people in our community service programmes. Both these figures exceed the projected
targets.
The aforementioned spectrum of services is well aligned with the
real needs of our beneficiaries and the communities we serve. However, the mere extent, and in the case of specialised services also
the costly nature of it, are testing our ability to source the required
revenue year in and out in a sustainable manner.
The reality is that we keep our organisation afloat through extensive
austerity measures and raising the bulk of revenue from discretionary donations. Furthermore, our revenue has been augmented
substantially over the past few years by way of grants from the National Lotteries Distribution Trust Fund, which is considered an unsustainable source of revenue due to its unpredictability.
In order to mitigate the aforementioned, our current strategy drive
in terms of funding is to increase long term funding partnerships
with a potential revenue value of R2m; to negotiate an alternative
model of state funding for children requiring specialised services; to
increase recurring donor contributions; and to improve third stream
revenue.
The viability and cost implications of single gender campuses for
traumatised children, to enhance the effectiveness of services to
these children often presenting difficult to manage behaviour, will
be explored in 2013.
As a result of the aforementioned specialised services to traumatised children were introduced; home based services to HIV/Aids af-
25
Brand awareness
The Abraham Kriel Childcare brand has always been better known
within the Afrikaans speaking community, due to its association
with the primarily Afrikaans speaking Dutch Reformed Church. Due
to its long history and the hundreds of people associated with the
brand, either through a historic family connection or through direct
involvement, the brand is fairly widely known throughout South
Africa and even within the South African communities that have
emigrated to other parts of the world, despite it being operational
in Gauteng only.
As the social and economic environment in South Africa changed,
so did the beneficiaries primarily served by Abraham Kriel Childcare
and along with that, the need to build a wider support base.
To this end brand research was conducted during 2012 in order to
determine brand perceptions and awareness amongst different target groups and different communities, focussing on the Gauteng
region as this is where we are primarily operating. It was found that
there is a need to make adjustments to the current corporate identity in order to counter perceptions that Abraham Kriel Childcare
mainly serves white and Afrikaans speaking beneficiaries;
and a need to bring the brand in line with current trends.
At year end we had 4917 active donors, 317 more than the target.
This included 532 new donors who joined our ranks during the past
year, compared to a target of 500.
Standard of child care
Child care is executed by people. Hence, the standard of childcare in
child and youth care centres is directly linked to the calibre and skills
set of the people delivering the services. The sector faces the reality
that, as a result of the high unemployment rate in Gauteng, grossly
under-qualified people aspire to enter the childcare environment,
having limited knowledge of the challenges childcare workers face.
In view of the already stated fact that highly skilled people are rarely
attracted as care workers, a real risk developed in recent years that
the standard of child care may become compromised.
In order to mitigate this risk, Abraham Kriel has successfully
implemented in-depth training of all child care workers;
commissioned a process of reviewing the selection criteria and
Population distribution
900
Residential care profile
700
160
600
140
500
120
400
100
White
Couloured
Indian
White
60
40
Indian
20
0
800
Black
Black
Coloured
80
Langlaagte
Satellite
Mariakloppers TotalTotal
Langlaagte Satellite
homesMaria
Campus
Homes
Kloppers
Residential
campas
Campas
Residential
Campus
Carecare
This process is already far advanced and proposals will be presented
to the board for approval.
To further this aim we have initiated partnerships with influential
groups within the areas in which Abraham Kriel Childcare is operating, such as Soweto. As a faith based organisation the different
church denominations, including English speaking and Black congregations are seen as vital for this process. We adopted targets
in our strategic focus areas to increase contributions from Soweto
business leaders to 10% of new funding developed in 2013/14, and
similarly 10% of new funding from the English speaking public.
Businesses within the areas where we operate are also seen as vital partners to further our goal to become an instantly recognisable
and respected brand.
26
Community services profile
Black
Black
Coloured
Coloured
White
White
Indian
300
Indian
200
100
0
Johanna Malan Zola/
Zola/ Steinhoff AK
AK Family
Care
Johanna
Family
ECDC
Extended Family
Westbury
Malan
Steinhoff
Care
Program
ECDC
Extended Westbury
Family Programme
Emdeni Skills Emdeni
Emdeni Drop-in
Total ComCommunity
Emdeni
Total
Development
centre
Services
munity
Skills
De- Drop-in
Centre
velopmentCentre
Services
Centre
screening methodology of child care workers; and increased its
efforts to widen the recruitment platforms used to attract
prospective child care workers.
Of the employees trained during the past year, the bulk were child
care workers. We set a target for 2013/14 to have at any given time
80% of our child care workers equipped with a SETA accredited
qualification in childcare, and 80% of our social workers equipped
with the appropriate therapeutic skills. We aim to have our in-house
training material for child care workers accredited by the end of October 2013. In addition to the aforementioned we will also work towards the establishment of a pool of experienced volunteers from
which permanent child care workers can be recruited.
Furthermore, the remuneration structures of child care workers will
be investigated for possible re-engineering in order to ensure the
attraction of the right calibre of person to this core function in
our services.
Corporate governance and
remuneration
Corporate governance
Board of Directors and Committees
The Board is governed by the Memorandum of Association and Articles of the company as well as the Board charter. Members of Board
committees are appointed by the Board and these committees are
governed by their respective charters, also approved by the Board.
Statement of responsibility by the
Board of Directors
The Board is responsible for the strategic direction of the company
and sets the values to which the company will adhere. The Directors
recognise the need to conduct the enterprise with integrity and provide effective leadership based on ethical values.
The Board charter sets out its responsibilities and duties including
the adoption of strategic plans, monitoring of operational performance and management, determination of policy and processes to
ensure the integrity of the company’s risk management and internal
controls, communication policy and director selection, orientation
and evaluation.
Board meetings are held at least quarterly, with additional meetings
convened when circumstances necessitate.
The Board of Directors consists of 10 Independent Non-executive
Directors and one Executive Director. The Chairperson is an Independent Non-executive Director whose role is separate from that
of the Chief Executive. The Board ensures that there is an appropriate balance of power and authority on the Board to ensure that
no single individual or block of individuals can dominate the Board’s
decisions.
The Directors are individuals of calibre and proven credibility and
have the necessary skills and experience to bring judgment to bear
independent of management, on issues of strategy, performance,
resources, transformation, diversity and employment equity, standards of conduct and evaluation of performance. The current
Board’s size, diversity of professional expertise and demographics
makes it effective with regard to Abraham Kriel’s current strategies.
The Board shall ensure that, in appointing additional Board members, the Board as a whole will continue to reflect, whenever possible, a diverse set of professional and personal backgrounds.
Directors have unrestricted access to all company information, records, documents and property to enable them to discharge their
responsibilities sufficiently.
The Board has delegated certain functions to various committees,
such as the Strategic Committee, the Audit Committee, the Financial and Risk Committee, the Remuneration and Human Resources
Committee and others. The Board is conscious of the fact that such
delegation of duties is not an abdication of the Board members’ responsibilities. The various committees’ terms of reference and performance shall be reviewed annually.
We continue to strive for effective governance to ensure the professional flow of funds in the best interest of our beneficiaries, the
children.
The Board as a whole and individual Directors have their overall
performance reviewed periodically in order to identify areas for improvement in the discharge of individual Director’s and the Board’s
functions on an annual basis. This review will be undertaken by the
Chairperson and, if so determined by the Board, an independent
service provider. The Board will appraise the Chairperson’s performance and ability to add value on an annual or such other basis as
the Board may determine. The Chairperson, or a sub-committee appointed by the Board, will appraise the performance of the Chief
Executive at least annually.
King III
The Board of Abraham Kriel Childcare subscribes to the principles
of King III and endeavours to implement the King III codes of practice in all material aspects. Material progress has been made in addressing gaps revealed in a gap-analysis in respect of governance
practices recommended by King III. This information is available on
request.
Board and committee meetings
The Board met on five occasions during the past financial year. The
average attendance was 65%. Board members contributed actively in all of the Board committees which collectively conducted 38
meetings during the past year.
27
Board of Directors
Independent non- executive
Directors
G W le Roux*
L B Mlotshwa#
J D de Villiers
I J de Villiers
I Fourie
Executive Directors
Chief Executive P S Momsen
S M Hay
M S Makgale
C Seefort
P M Strydom
K J Tshabalala
Board Committees
Audit Committee
Strategic Committee
Renumeration and HR
Committee
Professional Committee
J D de Villiers*
I J de Villiers
I Fourie
G W le Roux*
L B Mlotshwa#
P S Momsen
L B Mlotshwa#
H Adler
C Seefort
P M Strydom*
P S Momsen
L van Heerden
Advisory member:
B H Fait
Avisory members:
P S Momsen
P Sokkie
Advisory members:
N Mlaba
M van Zyl
Y Bosman
Information Technology
Committee
G W le Roux*
J du Toit
P S Momsen
Advisory members:
B H Fait
N du Bruyn
H du Toit
M van Zyl
External Audit
Internal Audit
Ethics Hotline
Financial and Risk
Committee
G W le Roux*
J D de Villiers
P S Momsen
Advisory members:
E Snyman-Teessen
B H Fait
M van Zyl
H du Toit
P Sokkie
R Pieters
N Mlaba
Marketing Committee
Emdeni Management
Advisory Committee
Appeals Committee
S Hay*
A Barter
P S Momsen
M Roberts-Lombard (Dr)
M S Makgale*
Z N Bafo
P S Momsen
S S Nkwala
S Qina
C J Claassen (Judge)*
G W le Roux
L B Mlotshwa#
Advisory members:
M Chinyanga M Snoek
A Viljoen
H du Toit
A Kincaid-Smith
M Myburgh
S Nel
Advisory members:
S Basson
T C Kunene
N Mlaba
E M Mohajane
S Khulu
T Dliwayo
Laws/ Regulations/ Codes
Policies/ Guidelines
Children’s Act
Companies Act
Nonprofit Organisations Act
Lotteries Act
Income Tax Act
Labour Relations Act
Basic Conditions of Employment Act
Employment Equity Act
Skills Development Act
Social Service Professions Bill
Criminal Procedures Amendment Act
Occupational Health and Safety Act
King III Report on Corporate Governance
B-BBEE Codes
Board charter
Committee charters
Code of ethics
Board induction
Conditions of service
Disciplinary code
Recruitment policy
Peformance management policy
Remuneration policy
Employment equity policy
Sexual harassment policy
HIV/Aids policy
Key financial policies and procedures
Anti-fraud and corrution policy
Stakeholder Engagement
Staff meetings
Children’s forums
Newsletters
Donor meetings
Donor tours
Reporting
Court appearances
Panel discussions
Presentations
Social and public media
Therapeutic interventions
Volunteer committees
Risk Management
Financial Oversight
Foundations to Governance
*
Chairperson
# Vice Chairperson
28
Marketing Committee
Strategic Committee
The Strategic Committee oversees the implementation of Board and
Financial and Risk Committee decisions. The Strategic Committee
acts in all strategic matters on behalf of the Board, when the Board
is not in session. The Strategic Committee also serves as nominations committee. The committee gave guidance to management in
respect of all five strategic focus areas, with a strong focus on financial sustainability, the development of employees and the sustainability of service offerings. The committee challenged management
continuously in respect of the development of future strategy.
Financial & Risk Committee
The core responsibility of the Financial Committee is to oversee all
financial matters, assets of the company and risk management. The
main contribution of the committee was to enhance the financial
sustainability of the organisation and to mitigate financial risks.
Management Advisory Committee
(Emdeni Campus)
The committee advises the Board and Management with regard to
the functioning of the Emdeni Campus. As an important link providing communication channels with and credibility to Abraham Kriel
Childcare in the community of Soweto, it contributed to the sustainability of our services in Soweto.
Appeal Committee
The Committee deals with all appeals with regard to disciplinary enquiries. This committee did not have to meet during the past year.
Audit Committee
The committee oversees all corporate governance matters and financial policy, procedures and audits. A separate report detailing
the activities of the audit committee is available on page 30 of this
report.
Remuneration and Human Resources
Committee
The committee oversees the marketing and communication strategy and implementation. The committee is actively involved in the
process of redefining brand elements in support of the strategic focus area “brand awareness”.
The Committee contributed actively in respect of the strategic focus area “Recruitment and retention of critical skills” by providing
oversight and guidance to management i.r.o. remuneration levels of
staff and management; succession planning of senior management;
employment equity and human resources transformation processes; human resource policies; performance assessment and career
development.
Professional Committee
The Professional Committee oversees all statutory matters and professional services to the beneficiaries. Its sole focus is the standard
of childcare and the sustainability of our service offering to our beneficiaries.
Information Technology Committee
The Information Technology Committee of the Board oversees the
management of risks associated with the IT function as well as the
development of policies, procedures, systems and infrastructure.
The activities of the committee supports all of our operational functions.
Remuneration
The Board sets remuneration policies on recommendation of the Remuneration and HR Committee.
Being a non-profit company Abraham Kriel Childcare does not have the variety of remuneration elements employed by corporate entities
Category
Remuneration components
Non-executive members
The non-executive members are not compensated for their duties which
are entirely on a voluntary basis
The Chief Executive, an employee of the company and
Executive Director
Received remuneration according to his contract of employment and received a 13th cheque equal to one month’s salary in November 2012
Rest of employees
Remuneration increases of employees are approved by the Board and
based on the outcomes of performance assessments. These performance
criteria are linked to key performance indicators relating to job descriptions. 13th cheques are approved by the Board if the financial situation of
the company permits such approval.
Historically the remuneration costs of Abraham Kriel Childcare as a percentage of expenditure would be 50%.
This increased to 53% in recent years as a result of efforts to attract the right talent and to transform the employee profile of the organisation. The figure decreased to 51% the past financial year, due to austerity measures.
The total personnel costs for the past two financial years were R18 328 620 (2013) and R18 642 971 (2012).
29
Report by the Audit Committee
Terms of reference
The Audit Committee has an independent role with accountability
to members in respect of its statutory duties, and to the Board in
respect of duties assigned to it by the Board as detailed in its Terms
of Reference. The Terms of Reference are reviewed and updated on
a regular basis. The committee has performed its duties during the
past financial year in accordance with the Terms of Reference.
Composition and meetings
The committee comprises three independent Non-executive Directors and will meet at least three times per year. Members of the
committee are all financially literate with the requisite levels of financial expertise.
After assessing the requirements set out in sections 94(7)(a–e) of
the Companies Act, the committee is satisfied with the independence and objectivity of the external auditors, and recommends the
re-appointment of the external auditors at the next annual general
meeting.
Internal financial controls
The members of the committee are as follows:
JD de Villiers, CA (SA) – Chairman
IJ de Villiers, CA (SA)
I Fourie, CA (SA)
Based on control processes in place, assurances obtained from management and the issues raised by the external and internal auditors in their various management reports, the committee is of the
opinion that the significant internal financial controls are effective.
As per planned schedule, the committee met on three occasions
during the past year. Average attendance was 77%.
Finance function
The Chief Executive Officer, the Financial Manager, the Internal Auditor and External Auditor attend meetings of the committee by
invitation. The External Auditor meets with the committee without
any of the executives on an annual basis and has unrestricted access
to the committee. The Audit Committee has a good working relationship with the Chief Executive.
Annual financial statements
Statutory duties
The committee performed the following activities during the year
under review:
Considered the independence and objectivity of the external auditors;
Reviewed the external audit plan and approved the
external auditors’ fee proposal for the 2013 financial year;
Approved the non-audit related services performed by the external auditors in the year in accordance with the policy established and approved by the Board;
30
Considered accounting treatments, significant financial transactions and other financial information;
Reviewed the internal audit plan and regular feedback as provided by the Internal Auditors;
Considered the appropriateness of the accounting policies.
The committee has considered and has satisfied itself on the appropriateness of the expertise and adequacy of resources of the
finance function of the company.
Based on processes and assurances obtained, the committee recommended the annual financial statements to the Board for approval.
Going concern
The committee, through its review of the 2013/14 budget and discussions with management, reported to the Board that it supported
management’s view that the company will continue to be a going
concern in the foreseeable future.
JD de Villiers
Chairman
16 July 2013
my anker van hoop
my anker van hoop
my anchor of hope
my anchor of hope
Abraham Kriel
Childcare
Abraham Kriel
Childcare
31
32
32
REPORT OF THE INDEPENDENT AUDITOR ON THE ABRIDGED ANNUAL FINANCIAL
STATEMENTS TO THE STAKEHOLDERS OF ABRAHAM KRIEL MARIA KLOPPERS CHILDCARE
The abridged annual financial statements, which comprise the summarised statement of financial position, the summarised income statement and
the summarised statements of comprehensive income, changes in equity and cash flows for the year then ended, and related commentary, are derived from the audited annual financial statements of Abraham Kriel Maria Kloppers Childcare for the year ended 31 March 2013. We expressed an
unmodified audit opinion on those annual financial statements in our report dated 16 July 2013.
The abridged financial statements do not contain all the disclosures required by International Financial Reporting Standards and the requirements of
the Companies Act of South Africa. Reading the abridged financial statements, therefore, is not a substitute for reading the audited annual financial
statements of Abraham Kriel Maria Kloppers Childcare.
Directors’ Responsibility for the Abridged Financial Statements
The company’s directors are responsible for the preparation of an abridged version of the audited annual financial statements in accordance with the
requirements of International Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the abridged financial statements based on our procedures, which were conducted in accordance with
International Standard on Auditing (ISA) 810, “Engagements to Report on Summary Financial Statements.”
Opinion
In our opinion, the abridged financial statements derived from the audited annual financial statements of Abraham Kriel Maria Kloppers Childcare
for the year ended 31 March 2013 are consistent, in all material respects, with those annual financial statements, in accordance with the International
Financial Reporting Standards.
PricewaterhouseCoopers Inc.
AJ Rossouw
Registered Auditor
Sunninghill
16 July 2013
33
34
35
36
37
Glossary
AKC
Abraham Kriel Childcare
B-BBEE
Broad-Based Black Economic Empowerment
CCWChild Care Worker
ECDC
Early Childhood Development Centre
HWSETA
Health and Welfare Sector Education and Training Authority
NPC
Non-profit Company
PBO
Public Benefit Organisation
PFMA
Public Finance Management Act
QSE
Qualifying Small Enterprise
SETA Sector Education and Training Authority
SLAService Level Agreement
TK Residence
38
38
Talitha Kumi Residence
39
40

S - Abraham Kriel Childcare

Transcription

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