2011/2012 Annual Review - Afrika Tikkun

Page5Board of directorsBertie LubnerChairmanHerby RosenbergExecutive DeputyChairmanMarc LubnerChief ExecutiveOfficerArnold FormanFinancial DirectorChief RabbiWarren GoldsteinPresidentWendy Lucas-BullNon-ExecutiveDirectorArnold BasserabieNon-ExecutiveDirectorKaruna MohanRussell LoubserAnn HarrisMoonyeen CastleDolly MokgatleRabbi Dovid HazdanBongani KhumaloNon-ExecutiveDirectorNon-ExecutiveDirectorNon-ExecutiveDirectorNon-ExecutiveDirectorNon-ExecutiveDirectorNon-ExecutiveDirectorNon-ExecutiveDirectorPATRONS: Raymond Ackerman , Gill Marcus, Irene Menell, Yvonne Chaka Chaka, Eliot Osrin, Ronnie Lubner, Cyril Ramaphosa, Eric SamsonAfrika Tikkun. Annual Review. 2011/12

Page7CEO’S reportSouth Africa is not delivering on its “RainbowNation” promise to the youth of the country.Nor is there much hope for future generationsbased on the current deliveries. Yet never has moremoney been thrown at poverty or more NGOsformed to address the needs of the economicallydisadvantaged. We are failing due to the lack ofa unifying vision, resulting in fragmented, thoughwell-meaning, efforts.Against this backdrop, Afrika Tikkun pioneers adifferent approach. Its model of developing childrenfrom “cradle to career” is achieved through anarray of partnerships, which include governmentdepartments, NGOs and local community leadership.These partnerships, combined with corporatesocial investments, empower local communities toimplement, operate and manage an integrated systemthat supports children born in poverty. Through yearsof daily support and skills development, the youthbecome capable of adding value to their lives and tothe nation.“Whatever the costof our libraries,the price is cheapcompared to that ofan ignorant nation”Walter CronkiteThe 2011/12 financial year was another majormilestone, as the number of beneficiaries grew bymore than 40% from the previous year, serviced byonly an inflationary increase in operating costs. Ourpartnership base grew substantially, which meantthat we could offer a greater array of expert servicesto our communities, while relationships with variousgovernment departments continued to strengthen.Internally there was a marked shift in the competencyof management’s decision-making at project sites,which reflects effective empowerment taking placewhere it really counts – in the communities.Marc LubnerChief Executive OfficerAfrika Tikkun. Annual Review. 2011/12

Page9CEO’S reportOverall expenditure incurred during the financial year ending 28 February 2012GautengCape TownProgrammesTotalsWings of Life:DiepslootArekopaneng:Orange FarmPhutaditjaba:AlexandraUthando Centreof Excellence:BraamfonteinNelsonMandela PeacePark: DelftZolile MalindiCommunityCentre: MfuleniRRRRRRREarly childhood development3 313 411818 996876 129842 554682 843-92 889Family support services3 494 213766 726951 226478 64380 9246676 345540 349Child and youth development6 258 6781 470 7511 612 2961 499 279154 860648 422873 068Primary healthcare1 981 389450 243398 801181 582-459 382491 381Nutrition and food security4 005 924875 0981 038 597456 29889 194917 235629 502Centre management andsupport services11 715 7982 532 0352 028 6901 635 2991 033 4592 209 3582 276 956“A heart for Children”programmes total30 769 4136 913 8496 905 7395 093 6562 041 2814 910 7424 904 145Assisting the community/interventions costs (refer to page 19 )6 281 931573 552865 9079 000337 8923 343 2441 152 336Capital expenditure23 062 2712 635 256775 209449 9954 807 77237 19414 356 845Total project expenditure60 113 61510 122 6578 546 8555 552 6517 186 9458 291 18020 413 326Beneficiaries per centre: for thefinancial yearInterventions per centre: monthly15 68197662 7821012 49952150710333-5 0637 3403 4972 263Afrika Tikkun. Annual Review. 2011/12

Page10Afrika Tikkun. Annual Review. 2011/12CEO’S reportOur impactLooking back on the 2011/12 financial year,it is encouraging to see how much we havegrown within the communities we serve, andto witness the impact our integrated HolisticDevelopment Model is having on an everincreasingnumber of community beneficiaries.Key highlights for year ended February 2012:Beneficiaries at community centres – 15 681Interventions to external community members – 9 766per month1. More than 550 full-time staff employed (±90%previously disadvantaged). To successfullyimplement the model, Afrika Tikkun engages andemploys local community members to drive theirown upliftment through the Centres of Excellencelocated in the townships.2. More than 20 formal partnerships with NGOsand government departments. In all Afrika Tikkun’sprogrammes, the organisation partners with otherNGOs and complementary service providers, whichare core to the model.3. Approved public/private partner with theDepartment of Social Development for a one-stopyouth development service.4. Contracts with the Department of Health expandedto support primary healthcare patients living inshacks by providing nutrition and an element ofstability to individuals who are incapacitated forhealth reasons.5. Endorsements from locally andinternationally renowned philanthropicand commercial institutions.6. The construction of the R20-million MfuleniCommunity Centre to cater for more than 2 500children and youth.7. The construction of the new Centre of Excellencein Braamfontien to cater for more than 1 500children and youth. This is the first inner-citydevelopment for Afrika Tikkun.8. A strong community buy-in and acceptance. Themajority of our budget, both in terms of fundingand focus, is dedicated to developingcommunity skills, making the places where we workareas where people thrive.FootnoteA beneficiary is any person who benefits on a regular basis from an Afrika Tikkun service provided from our community centres, and is therefore registered on our Soweto Care System, which acts as a registration,monitoring and management tool per beneficiary.An intervention is a once-off event that involves contact with people in the community in which Afrika Tikkun operates, who may not necessarily be beneficiaries of Afrika Tikkun as defined above.

Page11CEO’S reportWho we servePopulation distributionNationality breakdownBlackColoured1%South African citizensNon-South African citizens17%17%82%Afrika Tikkun. Annual Review. 2011/12

Page12Afrika Tikkun. Annual Review. 2011/12CEO’S reportHow we do itHolisticDevelopmentModel“From cradle to career”We seek and assess orphans and vulnerable children(OVC) through our community care workers in the areasin which we operate. We provide growth and developmentalneeds through our Holistic Development Model. Our services includesupport to the homes through primary healthcare, family supportservices and early childhood development, as well asa comprehensive youth development programme formaturing children.abcabcabcAfrika Tikkun develops children and youth from birth until they become productive citizens.

Page13CEO’S reportFamily Support Services programme (FSS)Total beneficiaries 1 560Predicted growth 1 575This progamme helps to strengthen thecaregiving efforts of families within thecommunities we serve and aims to promotethe well-being of children and their families.Family support workers also assist families by helpingthem apply for grants, providing emotional support,acting as referral agents for those with special needs,such as disabled children, and providing home-basedearly childhood development (ECD).In addition, the family support workers assist thefamily by working on a “Family Development Plan”with the goal of strengthening the family unit andhelping family members reach their personal goals.The services include:- Home-based ECD training- Social security access- Grant access- Parenting skills workshops- Centre-based skills upliftment services- Men making a difference (Cape Town-basedprogramme for unemployed males inthe communities)- Special needs- Food parcel distribution- Feeding schemesTotal beneficiaries:Total staff:Total1 56055Diepsloot29913Orange Farm17013Alexandra1105Hillbrow572Delft42112Mfuleni50310Annual cost:Average monthly costper beneficiary:R3 494 213R187R766 726R951 226R478 643R80 924R676 345R540 349Afrika Tikkun. Annual Review. 2011/12

Page14Afrika Tikkun. Annual Review. 2011/12CEO’S reportPrimary Healthcare programme (PHC)Total beneficiaries 5 771Predicted growth 6 750This progamme provides essential healthcarebased on practical, scientifically sound andsocially acceptable methods and technology,accessible by beneficiaries and the community.The budget for 2012/13 reflects a consolidation anda reduced overall spending, primarily as a result ofcost cuts in management, administration andmonthly spending.The programme is primarily funded and operatedunder contract from the Department of Health in theWestern Cape.The services include:- Home-based care- ARV and TB medication adherence- Integrated management of childhood diseases- Chronic illness care- Health workshops and campaigns- Youth clinicHighlightsOur primary healthcare grew from 3 700 to 5 800beneficiaries monthly. This programme addresses40% of our total number of beneficiaries and isa key element in assisting them in their homeenvironment, and working with the community ata grassroots level.Total beneficiaries:Total staff:Total5771227Diepsloot14410Orange Farm19911Alexandra588Delft3687147Mfuleni168351Annual cost:Average monthly costper beneficiary:R1 981 390R29R398 801R450 243R181 582R459 382R491 382

Page15CEO’S reportabcEarly Childhood Development programme (ECD)Total beneficiaries 1 012Predicted growth 1 150The programme focuses on developing thecognitive and mental skills of children at anelementary level, which is critical in preparingthem for formal schooling.The services include:- Basic numeracy- Literacy development- Social development- Nutritionally approved meals (two hot meals andsnacks every day)• Our Early Childhood Development programme(ECD) learner population increased by 53% from661 to 1 012. We upgraded our ECD facilities toaccommodate the increasing demand.• We are able to provide early learning for morechildren, through the addition of a special needsunit at selected centres, which provides supportservices for children with learning disabilities. Weextended this service, as well as the use of our “toylibrary”, to other schools in the area that do not havethe resources to offer similar facilities.• In December 2011, 219 learners graduated withliteracy, numeracy and various life skills to deal withthe challenges posed by the later schooling process.Children who have participated in programmes ofthis nature are far more likely to succeed on enteringthe formal school system.Total beneficiariesTotal staffTotal1 01272Diepsloot25218Orange Farm25018Alexandra19812Hillbrow16210Mfuleni15014Annual costAverage monthly costper beneficiary:R3 313 411R273R818 996R876 129R842 554R682 843R92 889Afrika Tikkun. Annual Review. 2011/12

Page16Afrika Tikkun. Annual Review. 2011/12CEO’S reportChild and Youth Development programme (CYDP)Total beneficiaries 4 376Predicted growth 6 000The goal of the Child and Youth Developmentprogramme (CYDP) is to impact positivelyand dramatically on children and youththrough centre-based and outreach programmes.This is to ensure the growth of healthy self-esteemand positive social skills, and to improve academicand sporting competencies and the drive andability to realise their inherent potential.The after-school programme teaches kids to accessknowledge through:• The internet.• Extra-curricula activities that prepare them forfuture careers.• Electronic libraries.• Learning support and homework programmes.• Computer skills training, as well as sport andrecreation activities.Highlights• Our youth programmes, which were onlyimplemented three years ago, have grown toa point where we now have more than 4 300children attending.• Top dog, an internet-based programme to improveMaths and Science, was successfully introduced atselected Centres of Excellence.• Library and multimedia facilities, with our trainedlibrarians, work in harmony with the local schoolsin the communities. They are au fait with the currentcurriculum and thus able to offer homework help,making it easier for learners to study and thusimprove their overall grades.“Wisdom is to themind what health isto the body”Francois de la Rochefoucauld

Page17CEO’S reportChild and Youth Development programmeTotal beneficiaries:Total staff:Total4 37677Diepsloot1 60319Orange Farm90717Alexandra83723Hillbrow1142Delft4836Mfuleni43210Annual cost:Average monthly costper beneficiary:R6 258 676R119R1 470 751R1 612 296R1 499 279R154 860R648 422R873 068Breakdown of youth programmes and services renderedChild and youth developmentActivities:Computer classesArts and cultureDrumming and danceLibrary and multimediaLife skillsSoccerNetballKarateBoxingHockeyLearning supportBMXTriathlonLeadershipSwimmingChessTouch rugbyTotal4 3761 196263365237298431384401531042593877168207210Diepsloot1 60363973252491627480-1041232931149-72-Orange Farm90724435122107414470127--62936---10Alexandra837131-7878585414119453-50------Hillbrow114-32---3834-----10----Delft4831158955-1186522------19---Mfuleni4326710078-326843---24---20--Afrika Tikkun. Annual Review. 2011/12

Page18Afrika Tikkun. Annual Review. 2011/12CEO’S reportNutrition and Food Security Support programme (NFSS)Total beneficiaries 8 625This progamme provides the best possiblenutritious meals at our centres and to thecommunity (through our Family Supportprogrammes) to aid the health and development ofall beneficiaries in our programmes. All mealsare freshly cooked on a daily basis in our fullyequipped industrial kitchens utilising vegetablesgrown in our own gardens.The services include:- Vegetable gardens- Nutritious meals- Emergency feeding- Lunch box and food parcel distribution- Weekend feedingOver 10 000 nutritious meals are served torecipients weekly, way above expected growth.Children participating in our Early ChildhoodDevelopment and Child and Youth DevelopmentProgrammes receive at least one nutritious meal andtwo snacks daily when attending the centre.Total beneficiaries:Total staff:Total8 62552Diepsloot2 47310Orange Farm223017Alexandra1 4205Hillbrow2765Delft9336Mfuleni12939Average number ofmeals served annually:520 000145 750143 00085 50035 00045 50065 250Annual cost:R4 005 924R875 098R1 038 597R456 298R89 194R917 235R629 502NB: The total figures include all beneficiaries who receive food from all other programmes.

Page20Afrika Tikkun. Annual Review. 2011/12CEO’S reportMarketing and supportAs a charitable organisation, we do not have alarge marketing budget, and therefore lookto our major corporate supporters to helppromote the work we are doing in partnership.From a marketing perspective, the organisationunderwent several transformations over the last year.We changed our branding from MaAfrika Tikkunto Afrika Tikkun to create more of a corporate lookand feel. We also refreshed our logo, upgradedemployment practices and built a new website withthe assistance of international experts to ensurewe carried this corporate philosophy throughoutthe organisation.“Education is the mostpowerful weaponwe can use to changethe world”Nelson MandelaAll in all, while we have not had a very easy year, wehave made tremendous progress towards ensuringthat our programmes are tailored to provide the mosteffective and efficient service to those who need itmost. Our philosophy on how this service is providedremains developmental, rather than charitable.Our desire is to continue ensuring that ourbeneficiaries keep developing into contributingmembers of society.

Page21CEO’S reportInternational reportAustraliaThe contributions by Afrika Tikkun Australia, underthe chairmanship of Richard Lubner and CEOGael McKenzie, were positive. We recognise theiroutstanding focus to raise money from privateindividuals through a direct debit initiative.Despite the difficulties in these international markets,Afrika Tikkun’s exposure and profile remain positive.UKAfrika Tikkun UK once again showed exceptionalresults, contributing R22 278 357 under thechairmanship of Gary Lubner and co-chairmanship ofGiuseppe Ciucci. We acknowledge and pay tributeto the significant role Ciucci has played. He has sinceretired his co-chairmanship, as he relocated from theUK. We acknowledge the efforts of executive directorBecky Lahey-Bean for her significant contribution tothe UK office results, as well as those of Jodi Hugh inEurope for all her efforts.USADespite difficult global economic conditions, theorganisation fared well in the USA. A restructuring ofthe board resulted in a passionate, professional office.With Brian Anderson assuming the role of chairman,we saw increases in the levels of fundraising andmarketing by him and his wife, Diana. In addition,Robyn Stalson’s employment in Texas resulted inimproved results.“Afrika Tikkunhas proven that ithas the ability toreach sections ofour disadvantagedpopulation atgrassroots level. Itprovides both physicalhelp, as well as givinghope and dignity tothe recipients”Nelson MandelaAfrika Tikkun. Annual Review. 2011/12

Page22Afrika Tikkun. Annual Review. 2011/12CEO’S reportInternational boardAustralian BoardUK BoardGary LubnerChairmanUSA BoardBrian AndersonChairmanRichard LubnerChairman, AustraliaGary LubnerChairman, UKBoard membersLeslie BergmanJennifer JansonGary MillnerAndrew NolanIra RappHagai SegalMichael SolomonLord Anthony St JohnJacques van NiekerkRoni WitkinBrian AndersonChairman, USAAndrew LevyFirst Vice-PresidentJohn ChalstyChairmanAdvisory BoardJune TatelmanVice-PresidentAdvisory BoardBoard of directorsNeal BalasnyJonathan BrodiePeter JacobsonEuvin NaidooWill RecantAlan SonnenfeldScott GassmanAdvisoryBoard MEMBERSLisa IssroffDenis KaplanJohn PintoGael McKenzieBecky Lahey-BeanJodi HughDiana AndersonCEO, AustraliaExecutive Director, UKExecutive Director,EuropeExecutive Director, USA

Page23CEO’S reportFundraising – who makes it happenWith the world economy on a precipice,the 2011/12 financial year has beenboth challenging and rewarding for us.Despite the difficulties faced, we were able tosubstantially raise the funding required to ensurethat our development work in the communitiescontinued unabated.We continue to work as Afrika Tikkun in communitiesbecause you have enabled us to do so. We are thevehicle through which, collectively, we achieve ourcommon goal of shaping the future of South Africa inorder that it may continue to be a home for all and acountry of which we are all proud.Like you, our valued partners, we are determined notto relent until the most desperate and vulnerable inour society, symbolised in our context as “children intownships”, are given every opportunity to achievetheir potential and ultimately become contributingmembers of society.As Afrika Tikkun, we have realised from our ownexperiences that government alone cannot beexpected to provide the ideal environment andresources to successfully empower communities inSouth Africa in order to develop new generationsof productive citizens. The challenge is too largeand too broad, and so successful interventionsneed to be realised through strong partnershipsbetween government, the private sector, communityorganisations and NGOs.The solutions must include a mix of money/financingand in-kind contributions that directly target theneeds of children in a vulnerable environment.Our model is focused on providing solutions to allthe elements (physical, educational, health, social,psychosocial and nutritional), which enables thedevelopment of a child or youth to be successfullyachieved through strategic partnerships.Although we are still far from achieving the level ofsuccess to which we aspire, we have neverthelessexperienced tremendous successes towards thesocial and economic upliftment of the disadvantagedcommunities. We were able to raise R58.4-million,falling short of the collection target of R65.7-million,primarily as a result of funding we had budgeted forfrom the National Lottery Distribution Trust Fund,which was not forthcoming, as well as tighteningcorporate social investment budgets. Many thanks toour loyal partners, donors and NGOs alike.The essence of strategic partnerships is that allparties bring their unique expertise to the table,complementing each other’s abilities, with the goalbeing achieving the change we envision. So whetheryou have skills you wish transferred to the community,or resources that can enable us to build Centres ofExcellence or IT/internet solutions, or any donationsin-kind and/or monetary contributions, we urge youto come forward and partner with us in tackling themultifaceted challenges. This support will enable usto overcome and succeed in our efforts to break thecycle of poverty in our communities.Afrika Tikkun’s goal for 2012/13 is to develop acombined total of 18 000 children, youths and familiesin Delft, Alexandra, Diepsloot, Orange Farm, Mfuleni,and Braamfontein. Please join us and continue tosupport us as we make this dream and our slogan, “AHeart for Children” a reality.HA RosenbergExecutive DeputyChairmanOnyi NwaneriNational DevelopmentManagerAfrika Tikkun. Annual Review. 2011/12

Page24Afrika Tikkun. Annual Review. 2011/12CEO’S reportFundraising challenges1. Growing social discontent and frustration,particularly among youth with a vision oftheir future. Fragmented CSI spend limits impact.2. Donor fatigue – as a result of corporates beingoverloaded with requests from NPOs for funds.3. Corporate economic issues – corporates arereducing their CSI spend.opened and expanded to cater for all our holisticdevelopment services and will incur an additionalR8 100 000 of operating expenditure.10. The need to retain current operators andto scale up interventions with local communitiesrequire reliable committed funds from donorswho have a shared interest in theoutcomes achieved.4. Erratic funding from government departments andnational lotteries make planning difficult andtherefore the scope is limited.5. Understanding the necessity of having at leastsix months’ working capital reserves on thebalance sheet, given the unpredictable nature offundraising and the need to secure 550 staffmembers and about 16 000 beneficiaries, who areserviced monthly.6. The need to institutionalise the Afrika Tikkunholistic model to ensure sustainability.7. Changing broad-based black economicempowerment criteria directly affects CSI spendas funds flow out of social spend and into for-profitenterprise development.8. International funding is becoming difficult as thereis a perception of a lack of cohesion betweenNGOs and government sectors.9. In 2012/13, two new community centres will be

Page25CEO’S reportThanksIn conclusion, I would like to thank all the staffand management, who are focused on deliveringresults. We truly believe that Afrika Tikkun is asymbol of value and we intend to continue workingevery day to realise that value for our beneficiaries.Finally, I would like to thank the Board of Directors,led by our co-founder and chairman, Bertie Lubner,for the inspiration, guidance and support they haveprovided to me and the entire management team.Marc LubnerChief Executive Officer“Often, it’s not aboutbecoming a newperson, but becomingthe person you weremeant to be, andalready are, but don’tknow how to be”Heath L BuckmasterAfrika Tikkun. Annual Review. 2011/12

Page26Afrika Tikkun. Annual Review. 2011/12PARTNERSExceptional PartnersBelronBertie Lubner Family FoundationGary LubnerGrowth Point PropertiesLewis StoresMartin MoshalMutual & FederalRonnie & Rhona LubnerEric & Sheila Samson (Macsteel)South Deep Education TrustThe Pola Pasvolsky Charitable andEducational TrustTrust NIFOrganisationsAdfusionAfroxAllan Gray LtdAONAspen PharmacareBarloworldBecton DickinsonBlue Label TelecomsBrenner MillsBrian Heineberg & AssociatesCape Union MartCashBuildCentriq InsuranceCitadel/PeregrineCQS Technology Holdings (Pty) LtdCreative HousewaresDatatecDavid Rubin & PartnersDis-Chem Strubens ValleyEdconFirst National BankFluxmans Inc1st for WomenFuturegrowthGenesis SteelGiant LeapGlencore International AGGold Reef Resorts LimitedGrant ThorntonHay GroupHSBCHudacoInvestment SolutionsJava CapitalJD GroupJones Lang LaSalle South AfricaJSE LimitedKPMGKumba Iron OreLots More PromotionsLVA PropertiesMaersk Line South Africa (Pty) LtdMAN ConsultingMango AirlinesMediClinicMeltz StoresMindset NetworkMPACT LimitedNFB Finance BrokersNorthcliff AutoNovartisPG GroupPhoenix Software SAPick n PayPlatinum Life (Pty) LtdPPCPremier Verification (Pty) LtdProtea HotelsRAM Hand-to-Hand CouriersRisk ProductionsRMB Private BankSA Charity Golf Day (UK)SantamSasfinSchindlers (UK) LimitedSentinel SteelSoftlineSolomon BrothersStonehageSwift EmbroiderySynthesis SoftwareTelesure GroupTelmar Media System (Pty) LtdTourvestTrainiac SA (Pty) LtdTrencorUBS BankVirgin ActiveVox DataproWebber WentzelWerksmansXstrataZurichFoundations and TrustsAmerican Jewish World ServiceAnglo American TrustApex Hi Charitable TrustAssistance FundB & R FoundationBarry Segal FoundationChief Rabbi CK Harris MemorialFoundationCole Family FoundationComair Charitable TrustCrawbuck FoundationDBSADeutsche Bank FoundationDiscovery TrustEllerine Brothers Trust FundElma FoundationEskom Development FoundationH & B Kramer FoundationHAGART TrustHCI FoundationHeneck Family FoundationInvestec – Lowenstein TrustInvestec – The Wise TrustIssroff Family Charitable FoundationJerome and Estelle R Newman AssistanceFund, Inc.Joan St Ledger Lindbergh Charitable TrustJoint Jewish Distribution CommitteeJune and Elliot Tatelman Family FoundationKirsh Charitable FundLetsema Sizwe Trust (Murray & Roberts)Maid FoundationMomentum FoundationMTN SA FoundationNedbank FoundationOppenheimer Memorial TrustPlanet WheelerRotary Club of RosebankSouth African Jewish Board of DeputiesSakhikamva NGO TrustSimon Buckingham and FamilySophie Jacob Memorial GrantSouth Deep Education TrustSusman Charitable FoundationThe China Town TrustThe CS Mott FoundationThe Graham Beck Foundation

Page27PARTNERSThe Making a Difference CharitableFoundationThe Mauerberger FoundationThe Moritz Family CharitableFoundationThe Prem Rawat FoundationThe Reed FoundationTruist Distribution TrustVaughan and Jacqui Blank and FamilyEmbassiesAmerican Consulate-GeneralAustralian High CommissionGovernmentCentral Gauteng TriathlonCity of Cape TownDepartment of Health Western CapeDepartment of Social DevelopmentWestern CapeDepartment of Sports and RecreationNational Development AgencyKhethimpiloDepartment of Health and SocialDevelopment, GautengIndividualsAdam GinsburgAbram Lazarus SankAl SankAlan SonnenfeldAlethea GoldAlon KowanAmaden GayAnn HarrisAnnie CrawfordAri & Amelia ZelezniakAshley & Lara CohenBarbara BaumsteinBarney SankBasil HersovBerry VersfeldBertie LubnerBeth BertschCaron SchnaidCecil JowellChristopher AmoilsChristopher HolderColin ColemanD GluckmanDale Ellen LeffDaniel A ShapiroDaniel Bradlow and Karen HoffmanDaniel JowellDave MellerDavid SamuelsDavid WitkinEd PerlbergEliot OsrinEric & Coral BeareFabrizio PaniccoG RubensteinGary AlgeGary LubnerGary MillnerGeorgia de HavenonGerard DamskiHazel GrasslinHersch KlaffJake KleinJeff BoeksteinJeff GersonJennifer & Ian SykesJennifer Borg & Garth WakefordJohn ChalstyJonathan BrodieJonathan LipworthJudy MoritzJune & Ken SwannKevin and Bev BermeisterKevin UtianKonrad SchlatterLance KatzLes SweidenLeslie BergmanLorien A GimpelMADELO/Rene van den HoudtMandy WacksMarc Hector D De SouterMarina & Colin ColmanMark ScheinbergMartin D MoritzMaureen GoldblattMike N FlaxNatalie & Will MendelsohnN L DuchenNeil GinsburgNick J FrangosNigel DoggettNolan NewmanOrit DavidowitzOzma McitwaPatricia FinePaul AmadenPenelope GerberRabbi Gary BraudeRichard LubnerRobin PragRomain OrlinRoni & Arnie WitkinRui NobreSamuel NudelmanSaul MargolisScott GassmanSean MelnickShachar ShlesingerSidney E LazarusSimon Buckingham and FamilyStanley GinsburgSteven KrugerSue WelmanTom & Michelle MunroeTrevor TurnerVicki & Gordon MullerVittorio MassoneWalter & Elizabeth Bolliger“If we aretogethernothing isimpossible. If weare divided allwill fail”Winston ChurchillAfrika Tikkun. Annual Review. 2011/12

Page28Afrika Tikkun. Annual Review. 2011/12Financial director’S REPORTWhy we are effectiveReflectionsAn important objective of any financial directorstriving to contribute to an organisation’sstrategic goals with a positive outcome andmeaningful result is to assess where we havecome from, what we have achieved, how we canimprove on what we have, and where we aregoing. All this hinges on our financial and humanresources, which, due to the nature of socialinvestment, are unfortunately limited.Our evolved vision of providing a holisticdevelopmental model from “cradle to career” fordisadvantaged youth is a reality, where today:• We have 15 681 beneficiaries at our centres. How dowe know this? We implemented a computer-basedsystem to track all beneficiaries who arrive at ourcentres. Our aim is to have a management toolto assist us ascertain our impact on that individual,determine the effectiveness of our services, indicateour cost-effectiveness and efficiency, and ensure wekeep track of the beneficiaries’ day-to-day living. Forexample: if a beneficiary does not come to ourcentre for food in three days, the system will flag thisand we can send a support worker to see ifeverything is in order.• Our centre programmes are running at full capacityand we cannot expand unless we build new centres.• The past year has seen us build our sixth communitycentre, four having been built in the past three years.• The 2012/13 year will be a time to consolidate andlet our centres focus on being Centres of Excellencethat can be classified as training anddevelopmental centres.• Our focus in the ensuing year is on using ourCentres of Excellence to provide our intellectualproperty to other service centres within the areasin which we operate. This will improve their impact,make them more sustainable and allow us growthwithout huge infrastructure costs. For example, inOrange Farm there are more than 30 informalcrèches. We, in effect, franchise one of the crècheswith our Afrika Tikkun standards and procedures.We will raise funding for this once we have coveredour own community centre operational costs.• The past year has seen us spend R23 100 000primarily on our Mfuleni and inner-city centres• Our six Centres of Excellence incurred operationaland head office supporting services ofR43 770 000 to allow and provide our holistic careservices as detailed in the report.• Each month we have between 5 000 and 9 700interventions that cost us R6 281 930 per annum.An intervention entails our employees visiting thecommunity areas in which we operate to providefamily support and health services, in the form ofinoculation, food packages or shack services.• It’s been an exciting year but fundraising has beenchallenging. We raised R58 400 000, which was shortof our expectations. However, we did not receivefunding from the National Lottery Distribution TrustFund this year.This year is exciting as we will focus on quality and onensuring that our aim to be professional Centres ofExcellence is not only maintained, but exceeded.Arnold FormanFinancial Director“The first wealthis health”Ralph Waldo Emerson

Page29Financial director’S REPORTOverview of operations controlThe Soweto Care System is a databasesoftware that is designed to register,track and monitor our beneficiaries. Thisprogramme is internet-based, easy to access andeasy to use.Beneficiaries are captured with their name, address,gender, identification/passport numbers, nationality,full medical history, household dynamics, financialstatus, school, immunisation record, housing and“outstanding needs“.This programme assists to capture and storereliable and verified performance informationon programme delivery.Evaluations are recorded on this system, providing ameans of accessing our beneficiaries’ progress andidentifying when intervention is required.Board of directorsCEOMarcLubnerFinancialDirectorArnold Forman- Financial Manager- Finance Department- Reporting inall aspectsCentres ofExcellence andHead OfficeAuditand RiskCommitteeIndividualmanagers trainedin each service area- Business Controller- Internal Controls- Monitoringand EvaluationSystems- Budgeting- Variance reporting- Standard costing as we have six centres wecan evaluate- Internal control procedures and manuals- Weekly checklists and analysis- Systems and risk audit- Internal audit controls and procedures- Monthly management accounts- Weekly EXCO meetings- Quarterly board meetings- Audit and risk committee meetings- Biometric systems (fingerprints)- ACCPAC accounting system- Soweto Care SystemAfrika Tikkun. Annual Review. 2011/12

Page30Afrika Tikkun. Annual Review. 2011/12Financial director’S REPORTFinancialsStatement of financial position20122011Year ended 29 February 2012RRAssetsNon-Current Assets5 737 8864 626 315Property, plant and equipmentUnlisted investmentLoan receivable1 317 7903 210 0001 210 0961 416 3153 210 000-Current AssetsLoan receivableOther receivablesCash and cash equivalents*32 967 187-1 901 93231 065 25542 072 062889 2502 088 40939 094 403Total AssetsEquity and Liabilities38 705 07346 698 377ReservesRetained surplusDesignated fundsOther funds34 679 1532 378 46432 300 68944 790 86418 165 53126 625 333Current LiabilitiesTrade and other payables4 025 9201 907 513Total equity and liabilities38 705 07346 698 377* Cash and cash equivalentsTo ensure that the organisation is sustainable and not in a vulnerable position given the unpredictable nature of fundraising, the board requires management to have cash on hand at any time to meet at least sixmonths of operating expenditure. This is estimated at R29 883 066, based on budgets prepared by management.At year-end the company had cash and cash equivalents of R31 065 255 and trade and other payables of R4 025 920. Operational cash available at year-end was R27 039 335. This is below the six-monthoperational cash policy requirement, which is being addressed.

Page32Afrika Tikkun. Annual Review. 2011/12Financial director’S REPORTFinancialsStatement of cash flowsYear ended 29 February 2012Cash flows from operating activitiesCash generated from operationsInterest receivedInvesting activitiesPurchase of property, plant and equipmentProceeds on sale of property, plant and equipmentPurchases of financial assetsLoan to related partyTotal cash movement for the yearCash and cash equivalents at beginning of yearCash and cash equivalents at end of year *2012R(7 335 580)(8 971 763)1 636 183(693 568)(520 622)147 900-(320 846)(8 029 148)39 094 40331 065 2552011R13 584 93211 325 7742 259 158(5 144 804)(1 051 555)6 001(3 210 000)(889 250)8 440 12830 654 27539 094 403* Cash and cash equivalentsTo ensure that the organisation is sustainable and not in a vulnerable position given the unpredictable nature of fundraising, the board requires management to have cash on hand at any time to meet at least sixmonths of operating expenditure. This is estimated at R29 883 066, based on budgets prepared by management.At year-end the company had cash and cash equivalents of R31 065 255 and trade and other payables of R4 025 920. Operational cash available at year-end was R27 039 335. This is below the six-monthoperational cash policy requirement, which is being addressed.

Page4Annual ReVIEW 2011/12South AfricaInternational officesJohannesburg OfficeGround Floor Eastwood Building57 6th RoadHyde ParkJohannesburgTel 27 11 325 5914Fax 27 11 325 5911Cape OfficeCenturion Business Park Unit J14Corner of Bosmansdam Roadand Democracy WayMilnertonSouth AfricaTel 27 21 551 7129Fax 27 21 447 1307AustraliaP O Box 665, Newport BeachNSW 2106, Australiainfoaus@afrikatikkun.orgTel 61 2 8231 6661United Kingdom & Europec/o BelronMilton Park,Stroude RoadEghamSurreyTW20 9ELinfouk@afrikatikkun.orgTel 44 (0) 1784 263 584United States of America535 East72nd Street 2aNew York 10021United States of Americainfousa@afrikatikkun.orgTel 1 212 327 1423www.afrikatikkun.orgTel 27 11 325 5914Fax 27 11 325 5911Public Benefit Organisation No. 18/11/13/2470 Non Profit Organisation No. 021 892 NPO | Association Incorporated under section 21 No. 98/15527/08, Vat No.4910185539Afrika Tikkun. Annual Report. 2012 / 2013