Annual Report
2010/11
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Chief Rabbi Cyril Harris and businessman/philanthropist Bertie Lubner join forces to drive the creation
of
a Jewish-based NGO that would tackle the scourge of poverty. Tikkun is born.
Tikkun .... MaAfrika Tikkun..... Afrika Tikkun
Our sincere thanks go to RMB Private Bank for their generous sponsorship of
this Annual Report
In line with the RMB Private Bank
philosophy of Tradition Values and
Innovative Ideas - we endeavor
to meaningfully participate and
contribute to society to ensure a
sustainable future for all South Africans.
One of the ways in which we believe
we make a difference is through our
partnership with Afrika Tikkun, who
enriches local communities with love,
commitment and empowerment
through their sharing of skills and
outreach programmes.
Afrika Tikkun’s success is testament
that true passion makes a difference
and we commend their employees
and volunteers for their tireless efforts in
ensuring that as true South Africans, we
leave a legacy for future generations.
We continue to be inspired by the work
done by the Afrika Tikkun team and
are proud to continue our partnership
with them, in achieving their hopes and
dreams for all South Africans.
Gavin Tarr
Head of RMB Private Bank
Change = alteration; modification; variation;
revolution; adjustment
Evolution = development; growth; progress;
progression; advancement
President Nelson Mandela
Former Chief Rabbi Cyril Harris
Dr Bertie Lubner
Afrika Tikkun Annual Report 2010/2011
When Tikkun – later MaAfrika Tikkun –
was formed soon after the emergence
of democracy in South Africa, the
objective of our founders was to
establish an organisation that would
actively address the consequences of
decades of institutionalised oppression.
The late Chief Rabbi Cyril Harris,
philanthropist and businessman Dr
Bertie Lubner, and former President
Nelson Mandela, believed the
organisation should focus on children
as they were the future of the country.
Initially Tikkun concentrated on dealing
with the day-to-day needs of those
children: food, clothing, shelter....
It soon emerged that in itself, this type
of action – necessary as it was – would
not achieve a sustainable outcome.
With this realisation, MaAfrika
Tikkun began its evolution into a
Developmental Enterprise.
This continued in 2010/2011. This was
a year of concerted change for
MaAfrika Tikkun: the organisation itself
changed; its Model and Holistic Circle
of Care was reformulated and refined.
So was the organisation’s name and
corporate identity.
However, the word “change” implies
an end has been reached. This is not
correct. MaAfrika Tikkun – now Afrika
Tikkun – remains a work in progress. As
an organisation, we are developing,
growing, progressing and advancing
in order to meet the ever-changing,
evolving needs of communities and
individuals we serve.
At the same time, our goal is to help
and empower the children in these
communities to develop, grow,
progress and advance – to evolve –
into well-adjusted, contributing citizens
of our country. We don’t set out to
change them, but to empower them
and allow them to evolve and achieve
their full potential.
We are also focused on empowering
our own people to play a more
meaningful role within our organisation
and within their communities – to help
them evolve into the best they can be.
Afrika Tikkun is growing. Afrika Tikkun is
developing. Afrika Tikkun is evolving...
watch this space.
Afrika Tikkun Annual Report 2010/2011
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Tikkun starts supporting some projects:
•
OSSAC
•
Rietfontein project
•
Temple Israel Nursery School in Hillbrow
Disaster management and reaction unit established.
Shack renovation scheme started.
Our new Afrika Tikkun brand identity
The changes to the MaAfrika Tikkun brand
identity mark the natural development
of our evolving organisation as we
strive to maintain relevance within the
communities we serve and South African
society as a whole.
Afrika Tikkun
Developing Communities
in South Africa
As such, our focus has shifted from
charitable interventions into the daily
struggles of impoverished citizens, to
developing individuals (mainly children)
and communities in a way that is both
meaningful and sustainable.
Afrika Tikkun of today is a developmental
organisation. Our refreshed brand
identity reflects this change. It depicts
a more corporatized organisation –
one that utilises effective and proven
business models to ensure delivery,
responsibility and accountability in all our
developmental activities.
However, we have been careful not
to negate the brand equity that has
Vision
A sustainable future for
children in South African
townships
Mission
Afrika Tikkun is dedicated
to investing in education,
health and social services
for children, youth and their
families through its community
Centres of Excellence and
strategic partnerships
Chairman’s Report
been built up over the past 16 years.
Our principles – values and mission – are
fundamentally the same but have been
updated to capture the essence of the
organisation in the second decade of
the 21st century. The fact that we remain
a community focused, South African
organisation continues to be reflected in
every aspect of our modernised identity.
The style chosen for the new identity is
friendly, approachable and personable
without being naïve. The colours, shapes
and typefaces have been simplified for
more visual impact as well as improved
legibility in reproduction. The change of
the name to Afrika Tikkun is a strategic
move to simplify the spelling of our
website and email addresses.
We are confident that our new brand
identity will instill pride and passion in all
the lives it touches and remind us of our
common bond and connection to a
greater goal
Values
1.Ubuntu
2. Commitment and Passion
3. Integrity and Honesty
4.Responsibility and
Accountability
5.Human Development
and Investment
6. Excellent Communication
“So little done, so much to do”
Cecil John Rhodes, 1902
Those were apparently the dying words
of the arch imperialist, referring to his
thwarted ambitions to colonise most of
Africa for the British crown. Those same
words could just as readily be applied
to MaAfrika Tikkun in 2011.
In the evolving history of our
organisation, the review period was
a satisfactory year. Despite the tough
economic conditions, we were able
to proceed with the expansion of our
facilities and programmes – albeit on a
slightly reduced scale.
But, against the reality that is South
Africa – a reality populated by millions
of children trapped in a never-ending
cycle of poverty with all its attendant
social ills – our contribution seems
woefully inadequate.
Our Centres can only accommodate
a fraction of the children in those
areas who desperately need the
kind of interventions we offer. We are
expanding our Gauteng ECD Centres
and we are planning to build one in
Mfuleni in the Cape. However, even
that will never be enough.
We need more trained people, more
equipment, more funding... And that’s
just for our current programmes that run
out of our Centres.
What about the needs of our children
when they go home where they
2
Afrika Tikkun Annual Report 2010/2011
have to deal with poverty, hunger,
homelessness and abuse?
What of the hundreds of children with
special needs?
It’s clear that need for the types of
services we have developed and
continue to develop is so vast that
no single organisation – not even
government – can do it alone.
Recognising this, our Continuum of
Care Model has evolved in a way that
can be quickly and cost-effectively
implemented and replicated. However,
without the active involvement of
government and the development of
true public-private partnerships, the
efforts of private sector organisations
like Afrika Tikkun will barely scratch
the surface of what has to be done
to break the cycle of poverty in our
country.
The country is facing increasing
problems caused by lack of delivery,
poverty and frustration which could
start to be politically exploited. With
the support of our donors, staff and
government, we can work together to
prevent this.
Bertie Lubner
Chairman
Afrika Tikkun Annual Report 2010/2011
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City of Cape Town, Tikkun and Department of Water Affairs & Forestry (DWAF) form partnership to
develop the Nelson Mandela Peace Park in Delft
Tikkun registered as a Section 21 Company
Board of Directors
CEO Report
Bertie Lubner
Herby Rosenberg
Marc Lubner – Chief
Arnold Forman
Chairman
Executive Deputy Chairman
Executive Officer
Financial Director
Chief Rabbi Warren
Goldstein – President
Arnold Basserabie
Ann Harris
Bridgette Radebe
Bongani Khumalo
Russell Loubser
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Karuna Mohan
Rabbi Dovid Hazdan
Moonyeen Castle
Non Executive Director
Non Executive Director
Non Executive Director
Patrons
Raymond Ackerman
Yvonne Chaka Chaka
Ronnie Lubner
Gill Marcus
4
Afrika Tikkun Annual Report 2010/2011
Irene Menell
Eliot Osrin
Cyril Ramaphosa
Eric Samson
Afrika Tikkun is evolving
from operating
Centres of Excellence
to providing a
Development Facility
Centre of Excellence.
This will allow us to
pass on our intellectual
knowledge, practice
and expertise to other
organisations so that we
can reach many more
children in need.
MaAfrika Tikkun ended the year a
different organisation in many respects
to what it had been just 12 months
before. The changes went beyond
the cosmetic (our name change,
new corporate identity and logo)
and reflected an organisation with
successful community programmes
that had been embraced by local
communities and endorsed by
the donors who had enabled the
programmes to be implemented.
details, daily usage of our services and
their progress.
These changes herald the natural
development of an evolving
organisation as it strives to maintain its
relevance within the communities it
serves and across South Africa as
a whole.
We are therefore evolving from
being Centres of Excellence into
a Development Facility Centres
of Excellence. We are exploring
ways where we partner with other
organisations to deliver expanding
and ever improving services from our
Centres whilst simultaneously sharing
our intellectual knowledge, practice
and expertise with other community
organisations so that together we
optimise our collective impact on the
lives we touch.
Through our Holistic Development
Model, focus is on empowering
children living in dire circumstances to
evolve into responsible, productive,
self-sufficient adults. At the same
time we empower adults within the
communities through training and
offering work opportunities.
This enables them to play an
increasingly more effective and
positive role in the development
of their children’s lives as well as to
create models and structures that will
provide for future generations. We build
competencies among the very people
who have a direct vested stake in the
community they serve and in which
they live.
The demand for our services is
enormous but we cannot keep
expanding our Centres of Excellence
to accommodate this need. It would
place too great a strain on our
resources and increase the risk that
we would be unable to meet the
legitimate expectations of the children
already in our Centres.
This approach will ensure that we
avoid over-extending our financial and
human resources while still expanding
our network and so make a positive
difference to many, many more
children.
As our organisation grows, both in
size and in stature, so the number of
beneficiaries that rely on us for the
services provided within our Holistic
Development Model increases. Today
we have over 6 800 beneficiaries at our
Centres and deliver more than 3 300
additional interventions among external
community members every month.
Each Centre’s efficiencies and cost
effectiveness were achieved by
a marked improvement from our
standard costing system. We have a
beneficiary management system to
monitor and record our beneficiaries’
Youth Development: computer literacy
Afrika Tikkun Annual Report 2010/2011
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Major drive to advance work at Temple Israel nursery school in Hillbrow, which flourishes
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Rietfontein Farm agricultural project gains momentum; farm school adopted
CEO Report (continued)
Developing skills, building
capacity and communities
We continue to invest considerably in
the development of managerial skills
and competencies amongst our 500
employees who are also role models,
service providers and leaders within
their communities.
Key managerial appointments during
the year included a new Chief
Operating Officer, Cheryl Ayogu and
Geilah Wills as Western Cape Regional
Operations Manager; as well as Onyi
Nwaneri as General Manager of
Fundraising and Donald Nghonyama as
Gauteng Regional Manager.
We also took what we believe is a
pioneering step for NGOs when we
entered into formal employment
contracts along with a clear job
specification and performance
management standards for every
individual working for Afrika Tikkun.
The investment we have made in
community members has resulted in
individuals who are now able to be
gainfully employed or are effectively
running their own projects within their
communities.
Gauteng Operations Managers: Sipho Mamize,
Patricia Ledwaba, Manny Mhlanga and Rita
Mkhwanazi
Strategic partnerships
Our investment in quality managerial
competencies will ensure the
sustainability and effectiveness of our
organisation well into the future.
During the review period we bolstered
our service delivery through the
establishment of targeted strategic
partnerships with organisations that
enable us collectively to improve our
impact on the communities we serve.
Development and empowerment of
staff does not stop at management
These mutually beneficial relationships
offer a critical way for us to broaden
Western Cape Operations Managers: Lizo Madinga
and Lizeka Rantsane
Cheryl Ayogu
Donald Nghonyama
Geilah Wills
level. For example, the Early Childhood
Development (ECD) principals at our
four Gauteng centres continued to
receive ongoing support, mentoring
and monitoring while ECD assistants and
practitioners continued their accredited
Level 1 and Level 4 training in early
childhood development. In addition,
Centre management in Gauteng
received financial management
training to empower them to take more
responsibility for their budgets and
control over assets.
our own skills base and allow us
to develop a sustainable set of
complementary competencies
and services within the township
environment.
6
Afrika Tikkun Annual Report 2010/2011
Afrika Tikkun Annual Report 2010/2011
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Floods in Alexandra Township. Tikkun’s involvement with Rev Linda Twala begins. Work with Rotary to
upgrade hall, build a clinic, library and sewing room at Phutaditjaba Centre.
Shack renewal project commences.
CEO Report (continued)
Financial Review
We achieved a marked improvement
in our standard cost system used to
Beneficiaries at our Centres of Excellence
1 806
1 695
1 326
790
968
Marketing Afrika Tikkun
The entire realm of Corporate Social
Responsibility is evolving. Corporate
donors expect a return on their longer
term investments into community
development. Afrika Tikkun has been
repositioned as a developmental
organisation with significantly improved
controls and a long-term sustainable
business model.
Mfuleni
Delft
Hillbrow
Alexandra
Orange Farm
Diepsloot
219
evaluate each Centre’s efficiencies
and cost effectiveness. Our financial
department aims to be the most
professionally run in the development
sector by applying strict financial
management principles. Our standard
costing system and beneficiary
management system are examples of
this approach.
Our beneficiary management system
monitors and records our beneficiaries’
details, daily usage of our services and
their progress. This is also used to flag
exceptions where for example a child
does not attend a class: we are then
able to follow up to find out why.
We ended the year with cash reserves
of R39 094 403, largely as a result of a
R9,03-million donation from the National
Lottery Distribution Trust Fund ((NLDTF)
which was received on 24 February, just
four days before the end of the review
period.
Key financial highlights
2011
Approximately R12 million of this surplus
has already been allocated to the
following capital projects which will be
built over the next year:
•Mfuleni: ECD Centre Development
•Hillbrow: ECD renovations and
relocation and Child and Youth
Development Centre
2010
R
R
Funds raised
61 327 978
46 124 149
Head Office and 9 936 075
8 204 505
Fundraising costs
Community Centre 28 793 781
16 534 007
Operating Costs
Capital Expenditure
12 567 808
2 927 427
on the Community
centres
A detailed breakdown of these costs per Centre is included in the Financial
accounts on page 38-39
This has been reflected in our refreshed
corporate identity which is important
in promoting staff identify, pride and
a sense of unity that bind us closer
together.
Our fundraising efforts are constantly
evolving in line with the CSI needs of
our sponsors and donors and we are
determined that those who support
us should enjoy a memorable and
enriching experience through the
association. We ensure donors receive
detailed report backs and we promote
donor interaction with the actual
beneficiaries they support.
8
Afrika Tikkun Annual Report 2010/2011
Afrika Tikkun Annual Report 2010/2011
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Former President Nelson Mandela becomes Tikkun’s Patron-in-Chief. Visits Rietfontein Farm
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Albertina Sisulu visits Hillbrow project
CEO Report (continued)
Operational Review
There has been considerable
development at our Centres over
the past year as we invested in the
continued skills development of Centre
management. Sipho Mamize was
appointed as General Manager at the
Wings of Life centre in Diepsloot and in
a very short time impacted the Centre’s
operating efficiency.
Our Child and Youth Development and
Family Support programmes expanded
as more after school activities were
provided offering children access to
academic, sport and recreational
support not available elsewhere within
their communities.
We appointed Social Workers at
each of our Centres to work across all
programmes offering more professional
support for our core services. These
professionals assist in the assessment of
all children and their families and ensure
that the support we offer is appropriate,
relevant and goal oriented.
10
Afrika Tikkun Annual Report 2010/2011
Afrika Tikkun Annual Report 2010/2011
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Diepsloot: Tikkun starts feeding scheme and upgrades Sophie’s Creche using a container.
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Independent Development Fund takes over Rietfontein agricultural project
CEO Report (continued)
Early Childhood Development
(ECD) Programme
The ECD programme provides preschool teaching from 07:30 to 16:30,
five days a week within a classroom
environment at our Centres. In
partnership with the international
Hippy organization, we provide a
home-based service that teaches
parents how to provide early childhood
development activities for their own
and their neighbouring children,
improving parenting skills and at the
same time creating income generating
opportunities for these parents.
Early Childhood Development
ECD Centre Round-up:
•The Ronnie and Rhona Lubner ECD
Centre at Phutaditjaba in Alexandra
started in June and had its first
graduating class in December. By
January 2011 we had an enrolment
of 118 children and now, with the
construction of a new classroom, 200
children attend the Centre daily.
•The Tikkun Hillbrow centre continued
to operate at full capacity with
149 children enrolled. Sixty children
graduated 2010.
•The RAM Arekopaneng ECD centre
in Orange Farm ended the year
with 140 children and 40 children
graduated and were assisted with
placements in to Primary schools.
By the end of the financial year,
two new classes had been added,
bringing enrolment to 219. Another
classroom is planned to enable us
to accommodate a total of 250
children.
•At Wings of Life ECD in Diepsloot,
enrolment had to be held at 188 to
comply with government standards.
Due to huge demand an extention
was undertaken which will be
completed by July 2011 enabling
total enrolment of 250 children.
•In the Cape, plans for the Mfuleni
Community Centre ECD are in
progress with facilities for 250
children being built. This will be
completed by end 2011.
221
175
-
-
Delft
Mfuleni
Hillbrow
Alexandra
150
Orange Farm
Diepsloot
151
Number of Children
12
Afrika Tikkun Annual Report 2010/2011
Afrika Tikkun Annual Report 2010/2011
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Tikkun becomes involved in a feeding scheme in Orange Farm.
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Tikkun starts delivering services in Orange Farm through the Tjhebele Pele partnership involving seven
community based organisations
CEO Report (continued)
Child and Youth Development (C&YD)
Programme
Child and Youth Development
1 022
A new Centre of Excellence is being
built in Hillbrow and Mfuleni is being
developed as a fully functional C&YD
Centre at a cost of approx R8million
in the first phase and an additional
R7million will be required to complete
the rest of the project.
14
Afrika Tikkun Annual Report 2010/2011
186
Mfuleni
Delft
Hillbrow
Alexandra
Orange Farm
Diepsloot
-
Number of Children
Child and Youth Development activities
1 404
1 361
1 346
363
355
290
217
173
Soccer
105
Netball
Karate
Boxing
Life Skills
Learning Centre Literacy
Learning Centre Homework Support
40
Hockey
196
Homework Assistance
We now have three Centres
of Excellence operating in this
programme: the Wings of Life Centre in
Diepsloot; the Arekopaneng Child and
Youth Development Centre in Orange
Farm which opened in October 2010;
and the Ronnie and Rhona Lubner
Child and Youth Centre in Alexandra
which opened in March 2011. The
programme is also offered in Delft and
Mfuleni.
376
372
Computer Lab: training
Youth interns, many of whom were once
beneficiaries, assist in implementation of
the programmes.
722
Arts & Culture Art, Dance and Dram
The C&YD programme is aimed at
developing well-adjusted, confident
and moral young adults capable
of seeking employment or tertiary
education. The Centres provide Internet
access; advanced computer training;
sports, drama and dance; cultural
activities and lifeskills training. These
are all provided in a manner that is
designed to entice children to stay off
the streets.
Number of Children
Afrika Tikkun Annual Report 2010/2011
15
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MaAfrika Tikkun goes “international” with branches opened in UK, Australia and USA.
Diepsloot: lease obtained from Methodist Church at Wings of Life project; water pump built;
set up Edutainer; kitchen built
Nutrition, Food Security and Support
Services
The family support services programme
delivers life sustaining support directly
into the shacks of community members
in crisis. Caregivers from the local
community go door-to-door delivering
nutritious meals, providing support in
accessing grants and medical care
and planning for the needs of children
found in these difficult circumstances.
This programme is more than a feeding
scheme. It serves all other programmes
to ensure the food security of the
children and families we serve. By
attracting participation initially through
feeding, we are able to entice children
to engage on a long, more productive
basis once they experience the value
of the content of our programmes.
Most children we feed receive no other
meals during the day.
Our Family Support Services programme
has activities that are aimed at
reducing dependency and enabling
families to become self-sufficient.
The results in ARV adherence and TB
treatment have made Afrika Tikkun a
partner of choice for the Western Cape
Department of Health.
In Gauteng, we have identified nurses
for each centre who will roll out a more
comprehensive health programme in
the province. These nurses will also work
across all Afrika Tikkun programmes.
16
Afrika Tikkun Annual Report 2010/2011
668
639
568
424
418
–
International Offices
1 162
669
644
76
358
351
Number of benefiaries
School Health
Patient Advocacy Program
Home Based Care
Adherence HIV/AIDS
Mfuleni
Integrated Management of
Childhood Illnesses
203
Delft
30
72
69
Hillbrow
71
Adherence Tuberculosis
The Primary Health Care programme
operates under contract for the
Department of Health in the Western
Cape and utilises the same protocol in
Gauteng funded by corporate donors.
Healthcare workers visit patients and
their children in their shacks offering
an array of medical and emotional
support, dealing with chronic illness and
even attending hospice patients.
305
Alexandra
Primary Health Care Programme
Interventions to the community at large
Family Support Services
Orange Farm
We also began piloting a special needs
programme for severely mentally and
physically challenged children.
This restricted our ability to market
our organisation in that territory and
Richard Lubner (Chairman) , Gael
McKenzie and Alison Overton are to
be thanked for their efforts. We hope
that through targeting direct debit
orders from private individuals, we will
enhance collection results.
Meals served per day
Feeding of adults is designed as
a crisis intervention and long-term
dependency is discouraged.
Diepsloot
A highlight of the review period was the
establishment of specialised services
in Diepsloot and Orange Farm in
partnership with other NGOs to address
issues relating to domestic violence and
child abuse in the community.
Our Australian office faced difficulties
with constraints placed on our ability to
utilise any of the money raised there, to
fund local operating expenses.
Mfuleni
Family Support Services Programme
Delft
CEO Report (continued)
Hillbrow
CEO Report (continued)
Alexandra
Tikkun becomes MaAfrika Tikkun
Orange Farm
199519961997199819992000
Diepsloot
1994
Despite the global meltdown, our UK
board and executive achieved record
results. These results were directly
attributable to the intensive direct
involvement of the UK board cochaired by Gary Lubner and Guiseppe
Cuicci. Mention must be made of
the personal, extremely significant
contributions of both Ronnie and Gary
Lubner in their personal capacities as
well via the Belron group. Guiseppe
Cuicci’s own organisation, Stonehage
similarly contributed significantly as
did all the UK board members who
personally ensure that all operating
costs within that territory are covered
so that 100% of donor funds are utilised
exclusively by beneficiaries.
The US office’s performance exceeded
that of previous years and the efforts
of Diana and Brian Andersen working
under the guidance of the chairman
Andrew Levy and the USA board,
are complimented. There are huge
opportunities for even greater funding
support from this generous market and
a more Americanised fundraising plan is
being implemented with an additional
fundraiser having being recruited.
Afrika Tikkun Annual Report 2010/2011
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Marc Lubner becomes CEO of Tikkun
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MaAfrika Tikkun partnership with the City of Cape Town, the Department of Water Affairs and Forestry
and the Mfuleni Community for the development a 350m2 training and resource centre – Mfuleni
Community Park.
CEO Report (continued)
Thanks
I must express my personal thanks to our
entire sponsor and donor community
for their ongoing belief in our vision and
for backing this belief by contributing
funds, advice, expertise, networking
and a great deal of love.
I am extremely grateful to our
Western Cape committee and Board
members – Ann Harris, Moonyeen
Castle and Li Boiskin – for the sound
advice and guidance they give to the
Cape Executive team as well as the
support they give to me in my national
responsibilities.
The task at hand is too great for any
one of us to handle independently, but
working together mobilising capital and
intellect, fuelled by a passion to see this
world a better place for us all, we can
and are making a material difference.
Finally, a tribute to our Chairman
Bertie Lubner for his tireless passion, his
wisdom and his constant attention to
detail; and most of all for the care and
concern he shows to every possible
member of staff.
A special note of thanks to Garron
Chaitowitz and PKF (Jhb) Inc. for
continuing to provide ongoing, highly
professional auditing services to Afrika
Tikkun on a pro bono basis.
It is this quality that defines all we do as
a community focused organisation.
Your years of dedication to our joint
cause is worthy of the highest praise.
I salute Arnold Forman, our Financial
Director, who provides his professional
services and considerable expertise,
working most nights into the early
morning to ensure our controls and
management reports are the best in the
business. All this is done on with heart
and no pay!
Special compliments to Herby
Rosenberg, our most esteemed mentor
and probably the finest fund raiser
in the country whose commanding
presence and joie-de-vivre add
zest to all we do and who achieves
remarkable results.
During the year of so much
development and change, the Board
of Afrika Tikkun provided invaluable
support and advice. My personal thanks
go to each and every Board member
for this and their ongoing commitment
to our organisation, in particular to
Karuna Mohan for the involved role she
played in support of management.
18
Afrika Tikkun Annual Report 2010/2011
Looking ahead
Afrika Tikkun is making great progress
in attaining our Centre of Excellencebased model through excellent
services, excellent programmes and
excellent people. We believe that
with the support of our donors and our
committed, passionate staff we can
reach this ideal.
Our focus on staff skills development
and in-service training in child and
youth care will continue unabated in
the year ahead. We will also work even
more diligently towards being able to
make a greater impact across South
Africa by sharing our model with other
organisations so that together we turn
the tide on the plague of hopelessness
and build a nation whose strength
lies in our ability to not just dream,
but to actually do!
Marc Lubner
CEO
Afrika Tikkun Annual Report 2010/2011
19
199419951996199719981999200020012002200320042005200620072008200920102011
Partnership with Arekopaneng, an Orange Farm NGO that offered the community a crèche and
a skills development centre, with the intention of developing a Centre of Excellence
1994199519961997199819992000
20012002200320042005200620072008200920102011
Wings of Life Centre of Excellence opens in Diepsloot
International Board of Directors
Gary Lubner
Guiseppe Ciucci
Andrew Levy
Richard Lubner
John Chalsty
Co-chairman, UK
Co-chairman, UK
Chairman, USA
Chairman, Australia
Chairman, Advisory Board,
USA
International Executive Directors
Diana Anderson
Brian Anderson
Becky Lahey-Bean
Gael Seymore
Alison Overton
USA
USA
UK
Australia
Australia
20
Afrika Tikkun Annual Report 2010/2011
Afrika Tikkun Annual Report 2010/2011
21
199419951996199719981999200020012002200320042005200620072008200920102011
199419951996199719981999200020012002200320042005200620072008200920102011
Phase 1 of Orange Farm Centre of Excellence, Arekopaneng ECD, opens
Phase 2 of Orange Farm Centre of Excellence, Arekopaneng Child & Youth Development Centre, opens
Fundraising Report
Partners & Sponsors
The 2010/11 year was both challenging
and exciting for the Fundraising
Department: a year that saw a number
of exciting developments both in
the way we have fund raised as well
as in the composition, growth and
management of the fundraising team.
The year was not without its challenges,
some of which included the ongoing,
tough economic environment which has
resulted in donors (current and potential)
becoming far more discriminating in how
they spend their funds.
Herby Rosenberg – Executive Deputy Chairman and
Onyi Nwaneri – National Development Manager
Compounding this was the fact that
the fundraising environment generally
has become significantly more
competitive and technical.
Although MaAfrika Tikkun managed
to reach its fund raising target in the
review period, this was largely thanks to
exceptionally generous donations from
a few loyal and long-time supporters:
Belron UK and its staff; the Lubner family
and the National Lottery Distribution
Trust Fund. We recognise that our
reliance on their ongoing goodwill
makes us extremely vulnerable. We
have to spread our risk by actively
growing our donor base.
This means that we not only have to
work harder if we are to be able to fulfil
Herby Rosenberg
Executive Deputy Chairman
22
Afrika Tikkun Annual Report 2010/2011
our commitments to the thousands of
children who look to us to give them a
chance of a better future; we have to
work smarter. We simply cannot fail.
We have found that donors – large and
small – increasingly want to make an
investment with us rather than simply
give us a charitable contribution. We
welcome this shift because it dovetails
precisely with Afrika Tikkun’s own
development strategy.
In order to meet the challenge of
ensuring Afrika Tikkun is able to meet its
commitments and realise its vision, we
made some significant changes to our
fundraising approach.
Our efforts to introduce new donors to
the organisation have started to bear
fruit. We have also made progress in
implementing strategies designed to
deepen and strengthen our relationships
with existing donors and supporters.
Our goal in the 2011/2012 financial
year is to spread our fund raising
efforts and hopefully receive one third
of our funds from new donors while
maintaining our ties with our existing
supporters. We will also be pursuing
opportunities to increase the financial
base of our endowment trust.
Onyi Nwaneri
National Development Manager
Exceptional Partners
Belron
National Lottery Distribution
Trust Fund NLDTF
Organisations
1st for Women
Absa Bank
AFGRI Operations Ltd
Africa geographic (Pty) Ltd
Afrisam
Afrox
Altitude Leisurewear
Anglo Gold Ashanti
Aspen Pharmacare
Auction Africa
Barnard Jacobs Mellet
Blue Label Telecomms
BMW
Bradford McCormack &
Associates
Brenner Mills
Cape Union Mart
Capitec Bank
Citadel/Peregrine
Comair
Data World
Datacentrix
Datatec
Dawn Distribution Network
Deloitte
Dimension Data
Disvitt
Du Pont Telecom
Europcar
First National Bank
Fluxmans Inc
Gammatec NDT Supplies
Genesis Steel
Glaxo SmithKline
Gold Reef Resorts Limited
Grindrod Bank
Gullan & Gullan
Guma Group
Hay Group
Howden
HSBC
Hudaco trading
IDC
Internet Solutions
Investec / Wise Trust
Investec Properties
Investment Solutions
Kaspersky Lab South Africa
Kim - H
KPMG
Krost Shelving
Kumba Iron Ore
Lotsmore Promotions
Macsteel Group
Makro
MediClinic
Murray & Roberts
NedBank
NFB Finance Brokers
Norvatis
O’Brien Glass
Old Mutual Group
Omnicom Fina NCE PLC
Pastranscor
PG Group
Phoenix Software
Pick n Pay
Pioneer Foods
Platinum Life
PPC Cement
RAM Transport S.A (Pty) Ltd
Hand-to Hand Couriers
RMB Private bank
Rosenbank Rotary Club
Safelite USA
Santam
Sasfin Holdings
Sentinel Steel Service
Sister Act
Softline Group
Solomon Brothers
Steinhoff International
Stonehage
Super Sports
Synthesis Software
Telmar Media System (Pty) Ltd
Tessa Sonic Fabrics
The Biovac Institute PTY LTD
Tourvest
Trencor Ltd
UBS Bank
UTI SA
Voltex Bramley
Vox Telecomms
Webber Wentzel
Werksmans
Winchester Global
Wizo
Xstrata
Yeshiva College
Zurich Insurance
Individuals
Abe & Barney Sank
Alan Metz
Anne, Martin & Peter
Danhauser
Anthony & Martin Moshal
Basil Hersov
Bill Cochrane
Brett Levy
Brian Lever
Cecil Jowell
Charitable Foundation)
Cape Jewish Educational
Charitable Foundation
D.G Murray Trust
Deutsche Bank Foundation
Development Bank of South
Africa (DBSA)
Elliot Osrin Trust
Elma Foundation
Eskom Foundation
George Elkin Charity
Glatt Charitable Trust
Goldschmidt Family
GRT Charitable Trust
Hawthorn Trust
Hebrew Order of David
Kaplan & Kaplan Trust
Kessler Foundation
Kirsh Charitable Fund
Letsema Sizwe (Murray &
Roberts)
MAID Foundation
Mauerberger Foundation
Momentum Fund
Mutual and Federal
Nedbank Foundation
Nelson Mandela Children’s
Fund
Oppenheimer Memorial Trust
Penguin Millner Trust
Planet Wheeler Foundation
Rapp Family Foundation
Reed Foundation
South African Jewish Board of
Deputies
The Graham Beck Foundation
The Mauerberger Foundation
The Moritz Family Charitable
Foundation
The Mott Foundation
The Susman Charitable Trust
World Jewish Relief
Christopher Holder
Clifford Amoil
Colin S Shar
Collin & Marina Coleman
David Witkin
Eric & Sheila Samson
Eric Beare
Gary Lubner & Family
Gary Millner
Gerald B Rubenstein
Gerard Damski
Guiseppe Ciucci
Harold Gorvy
Hazel Grasslin
Hyman Goodman
Ira Rapp
Jamie Harper
Janit & Cecil Jowell
Jeff Boekstein
Joanne Zimmerman
Jordan Belfort
Judy Moritz
Lance Katz
Leora Israel
Leslie Bergman
Lord Anthony St John
Marc Hector D. De Souter
Mark Scheinberg
Mike Wexler
Martin Darryl Moritz
Mike N Flax
Nic J Frangos
Nigel Doggett
Ozma Mcitwa
Romain Orlin
Roni Witkin
Ronnie & Rhona Lubner &
family
Rui Nobre
Russel & Joanne Zimmerman
Sean Melnick
Shacher Shlesinger
Stanley Ginsburg
Trevor Turner
Uri Krost
Vaughan Blank
Walter Bollinger
Willem van Delen
Trusts Embassies Foundations
AA Newman Family Trust
Absolute Return for Kids (ARK)
Ackerman Family Foundation
American Consulate
American Jewish World
Service
Anglo American Trust
Australian High Commission
Azriel & Moira Fine Foundation
B & R Foundation
Belron Foundation
BOE (Joan St Leger Lindberg
Government
City of Cape Town
Department of Health Western Cape
Department of Social
Development & Health Gauteng
Department of Social
Development - Western Cape
EPWP
Khethempilo
Afrika Tikkun Annual Report 2010/2011
23
199419951996199719981999200020012002200320042005200620072008200920102011
Alexandra’s Centre of Excellence, Ronnie & Rhona Lubner ECD/Child and Youth Development
Centre, opens
199419951996199719981999200020012002200320042005200620072008200920102011
Construction starts on first phase of Mfuleni Centre of Excellence – an ECD Centre
MaAfrika Tikkun rebrands as Afrika Tikkun
24
Afrika Tikkun Annual Report 2010/2011
Afrika Tikkun Annual Report 2010/2011
25
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS
Report on the Financial
Statements
We have audited the accompanying
financial statements of Afrika Tikkun
(Association incorporated under S21 of
the Companies Act), which comprise
the directors’ report, the statement of
financial position as at 28 February 2011,
and the statement of comprehensive
surplus, statement of changes in reserves
and statement of cash flows for the
year then ended, and a summary of
significant accounting policies and other
explanatory notes, as set out on pages
27 to 37.
Directors’ Responsibility for the Financial
Statements
The directors are responsible for the
preparation and fair presentation of
these financial statements in accordance
with South African Statements of
Generally Accepted Accounting
Practice, and in the manner required
by the Companies Act in South Africa.
This responsibility includes: designing,
implementing and maintaining internal
control relevant to the preparation and
fair presentation of financial statements
that are free from material misstatement,
whether due to fraud or error; selecting
and applying appropriate accounting
policies; and making accounting
estimates that are reasonable in the
circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion
on these financial statements based
on our audit. Except as discussed in
the basis for qualified audit opinion
paragraph below, we conducted our
audit in accordance with International
Standards on Auditing. Those standards
require that we comply with ethical
requirements and plan and perform the
audit to obtain reasonable assurance
whether the financial statements are free
from material misstatement.
26
Afrika Tikkun Annual Report 2010/2011
An audit involves performing procedures
to obtain audit evidence about the
amounts and disclosures in the financial
statements. The procedures selected
depend on the auditors’ judgement,
including the assessment of the risks of
material misstatement of the financial
statements, whether due to fraud or error.
In making those risk assessments, the
auditors consider internal control relevant
to the entity’s preparation and fair
presentation of the financial statements
in order to design audit procedures that
are appropriate in the circumstances,
but not for the purpose of expressing
an opinion on the effectiveness of the
entity’s internal control. An audit also
includes evaluating the appropriateness
of accounting policies used and the
reasonableness of accounting estimates
made by the directors, as well as
evaluating the overall presentation of the
financial statements.
We believe that the audit evidence
we have obtained is sufficient and
appropriate to provide a basis for our
audit opinion.
Qualification
In common with similar organisations, it is
not feasible for the association to institute
accounting control over certain cash
transactions prior to the initial entry in
the accounting records. Accordingly, it
was impracticable for us to extend our
examination beyond the transactions
actually recorded.
Audit opinion
Except for the effects of any adjustments
which might have been necessary had
it been possible for us to extend our
examination in this regard, in our opinion,
the financial statements fairly present,
in all material respects, the financial
position of the association at 28 February
2011 and the results of its operations and
statement of cash flows for the year then
ended in accordance with South African
DIRECTORS’ RESPONSIBILITY
Year ended 28 February 2011
Statements of Generally Accepted
Accounting Practice, and in the manner
required by the Companies Act in South
Africa.
The directors are responsible for
the preparation, integrity and fair
presentation of the financial statements
and other financial information
included in this report. In presenting the
accompanying financial statements,
South African Statements of Generally
Accepted Accounting Practice have
been followed, applicable accounting
assumptions have been used while
prudent judgements and estimates
have been made.
Supplementary information
The supplementary schedules set out
on pages 38 and 41 do not form part
of the annual financial statements and
are presented as additional information.
We have not audited the supplementary
schedules and accordingly we do not
express an opinion on them.
The going concern basis has been
adopted in preparing the financial
statements. The directors have no
reason to believe that the company
will not be a going concern in the
foreseeable future based on forecasts
and available cash resources. The
financial statements support the viability
of the company.
Accounting and secretarial duties
With the written consent of all members,
we have performed certain accounting
and secretarial duties.
Chartered Accountants (S.A)
Registered Auditors
Registration number 1994/001166/21
Sandton
17 August 2011
Per : GM Chaitowitz
Marc Lubner
CEO
The financial statements have
been audited by the independent
accounting firm, PKF (Jhb) Inc, which
was given unrestricted access to all
financial records and related data,
including minutes of all meetings of
shareholders, the board of directors and
committees of the board. The directors
believe that all representations made
to the independent auditors during the
audit were valid and appropriate.
The business of the annual general
meeting will be dealt with by a
resolution of the members.
The financial statements were
approved by the directors on 17 August
2011 and are signed on their behalf.
Arnold Forman
CFO
DIRECTORS’ REPORT
Nature of business of the company
The company was incorporated under
S21 of the Companies Act of South
Africa.
Afrika Tikkun is evolving from
establishing to now operating centres
of Excellence which will provide
a Development Facility Centre of
Excellence. This will allow us to pass on
our intellectual knowledge, practice
and expertise to other organisations so
that we can reach many more children
in need.
General review
The results of the company are set out
in the annexed financial statements.
Directorate
The names of the directors in office at
the date of this report are set out on
page 4.
Change of name
The company changed its name after
year end to Afrika Tikkun.
The name ‘Africa Tikkun’ was approved
on 28 July 2011 by the Registrar of
Companies.
Unlisted investment
During the financial year under review,
the company acquired 160 500 shares
in MTN Zakhele Limited at a cost of R3
210 000.
Afrika Tikkun Annual Report 2010/2011
27
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
STATEMENT OF FINANCIAL POSITION
STATEMENT OF COMPREHENSIVE SURPLUS
Year ended 28 February 2011
Year ended 28 February 2011
Notes
Assets
2010
R
R
Notes
Net surplus
2010
R
R
11 210 215
17 533 965
After crediting:
Donations received
61 327 978
46 124 149
Non-current assets
Property, plant and equipment
2
Unlisted Investment
3
4 626 315
1 416 315
3 210 000
705 592
705 592
-
Current assets
42 072 062
33 656 441
Contributions received from National Lottery
Contributions received from other donors
Contributions from MaAfrika Tikkun Endowment Trust
9 030 325
51 247 805
1 049 848
17 924 123
26 750 026
1 450 000
Loan receivable
4
Other receivables
5
Cash and cash equivalents
889 250
2 088 409
39 094 403
3 002 165
30 654 276
Interest received
2 259 158
1 831 591
Total assets
46 698 377
34 362 033
702 073
43 464 844
30 897 036
12 567 808
326 915
816 827
709 890
5 766 919
300 874
22 217 269
19 289 843
2 927 426
397 964
714 025
627 090
5 689 632
11 210 215
17 533 965
1.5
After charging:
Reserves
Retained surplus
44 790 864
33 580 649
Designated funds
11
Other funds
18 165 531
26 625 333
22 314 947
11 265 702
Consulting fees
Cost of projects
Operational costs
Capital expenditure
Depreciation and impairments
Director’s emoluments
Operating lease charge – property
Staff costs
6
1 907 513
781 384
Surplus for year
Total equity and liabilities
46 698 377
34 362 033
Equity and liabilities
Current liabilities
Trade and other payables
Included in the surplus at year end is a donation received from the National Lottery on the 24th of February 2011 of
R9 030 325 (2010 : R17 924 123).
Included in Reserves of R44 790 864 (2010: R33 580 649) are designated funds of R18 165 531 (2010: R22 314 947) which
have been allocated as set out in note 11 and include an amount of R9 030 325
(2010 : R17 924 123) received from the National Lottery on the 24th of February 2011. These designated funds are
included in cash and cash equivalents. The remaining balance of R26 625 333 (2010: R11 265 702) will be applied to
fund future operations.
28
Afrika Tikkun Annual Report 2010/2011
Afrika Tikkun Annual Report 2010/2011
29
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
STATEMENT OF CHANGES IN RESERVES
STATEMENT OF CASH FLOWS
Year ended 28 February 2011
Reserves at 1 March 2009
Surplus for the year
Year ended 28 February 2011
Designated Funds Other Funds
R
R
5 414 214
10 632 470
–
17 533 965
Total
R
16 046 684
Notes
Cash flows from operating activities
2010
R
R
13 584 932
10 038 165
17 533 965
Cash generated from operations
7
Interest received
11 325 774
2 259 158
Investing activities
(5 144 804)
(193 655)
Purchase of property, plant and equipment
2
Proceeds on sale of property, plant and equipment
Proceeds on sale of financial assets
Loan to related party
(1 051 555)
6 001
(3 210 000)
(889 250)
(229 278)
35 623
-
Total cash movement for the year
8 440 128
9 844 510
Cash and cash equivalents at beginning of year
30 654 275
20 809 766
Cash and cash equivalents at end of year
39 094 403
30 654 276
Total cash on hand
Designated
Undesignated
39 094 403
18 165 531
20 928 872
30 654 276
22 314 947
8 339 329
Increase in designated funds
16 900 733 (16 900 733)
Reserves at at 28 February 2010
22 314 947
11 265 702
33 580 649
Surplus for the year Decrease in designated funds
–
(4 149 416)
11 210 215
4 149 416
11 210 215
–
Reserves at 28 February 2011
18 165 531
26 625 333
44 790 864
30
Afrika Tikkun Annual Report 2010/2011
–
8 206 575
1 839 591
Afrika Tikkun Annual Report 2010/2011
31
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
Year ended 28 February 2011
1.Presentation of Annual
Financial Statements
The annual financial statements have
been prepared in accordance with
South African Statements of Generally
Accepted Accounting Practice, and
the Companies Act of South Africa. The
annual financial statements have been
prepared on the historical cost basis, and
incorporate the principal accounting
policies set out below.
These accounting policies are consistent
with the previous period.
1.1Accounting estimates and
judgements
In preparing the annual
financial statements,
management is required
to make estimates and
assumptions that affect the
amounts represented in the
financial statements and
related disclosures.
Use of available information
and the application of
judgements, is inherent in the
formation of estimates. Actual
results in the future could differ
from those estimates which
may be material to the financial
statements. No significant
judgements were made in the
current financial year.
1.2Property, plant and equipment
All property, plant and
equipment is stated at cost less
accumulated depreciation and
any impairment losses.
Depreciation is provided to
write down the cost, less the
estimated residual value, over
the useful life of the property,
32
Afrika Tikkun Annual Report 2010/2011
plant and equipment, as
follows:
Item
Average useful life
Motor vehicles
20% pa
Office equipment
20% pa
Computer equipment 33% pa
Leasehold property
20% pa
Residual values, remaining
useful lives and depreciation
methods are reviewed annually
and adjusted if appropriate.
The depreciation charge for
each period is recognised in
profit or loss unless it is included
in the carrying amount of
another asset.
1.3 Financial instruments
Initial recognition and
measurement
Financial instruments carried
on the statement of financial
position include cash resources
and borrowings, other financial
assets, receivable and
payables. Financial instruments
are initially measured at cost,
which includes transaction costs
and are generally carried at
their estimated fair values.
Trade and other receivables are
stated at cost less a provision for
doubtful debts.
Unlisted investments, where the
fair value is not determinable,
are carried at cost less
accumulated impairment
losses.
1.4Tax
Tax expenses
No provision has been made
Year ended 28 February 2011
for South African normal
taxation as the association
which is incorporated in terms
of Section 21 of the Companies
Act is exempt from income tax
in terms of section 10 of the
Income Tax Act.
1.5 Donations
Donations received comprise
cash and non cash donations
and contributions received from
donors.
2. Property, plant and equipment
2011
Leasehold property
Motor vehicles
Office equipment
Computer equipment
Cost
Accumulated
depreciation
R
R
133 075
1 106 695
478 034
891 953
(3 619)
(493 043)
(142 163)
(554 563)
129 456
613 652
335 817
337 390
2 609 757 (1 193 388)
1 416 315
Total
2010
CostAccumulated
depreciation
R
R
Carrying
value
R
Carrying
value
R
Motor Vehicles
Office equipment
Computer equipment
636 777
383 382
622 486
(406 759)
(104 688)
(425 606)
230 018
278 694
196 880
Total
1 642 645
(937 053)
705 592
Reconciliation of property, plant and equipment – 2011
Leasehold property Motor vehicles Office equipment
Computer equipment
Opening balance
Additions
Disposals ImpairmentsDepreciation
Total
RRRRRR
-
133 075
-
-
(3 619)
129 456
230 018
540 498
-
-
(156 864)
613 652
278 694
108 515
(13 917)
-
(37 475)
335 817
196 880
269 467
-
-
(128 957)
337 390
Total
Reconciliation of property, plant and equipment – 2010
Leasehold property Motor vehicles Office equipment
Computer equipment
Total
705 592
1 051 555
(13 917)
-
(326 915)
1 416 315
Opening balance
Additions
Disposals ImpairmentsDepreciation
Total
RRRRRR
76 249
-
-
(76 249)
-
386 480
-
(28 052)
-
(128 411)
230 018
218 630
111 590
-
(18 873)
(32 653)
278 694
228 542
117 688
(7 571)
-
(141 778)
196 880
909 901
229 278
(35 623)
(95 122)
(302 842)
705 592
Afrika Tikkun Annual Report 2010/2011
33
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
Year ended 28 February 2011
No of shares
3. Unlisted investment
MTN Zakhele Limited – at cost
160 500
The company holds a proportional interest of shares in
MTN Limited through MTN Zakhele Limited.
Directors valuation
Year ended 28 February 2011
2010
R
R
3 210 000
3 210 000
–
-
4. Loan receivable
Afrika Tikkun Australia
The loan is unsecured, bears no interest and is repayable by 28 February 2012.
889 250
8.Commitments
Authorised capital expenditure
Already contracted for but not provided for – Orange Farm
– Alexandra
– Diepsloot
– Head Office
This committed expenditure relates to building on project sites
and will be financed by designated funds included in
donations already received.
Operating leases – as lessee (expense)
Minimum lease payments due – Within one year
– In second to fifth year inclusive
2010
R
R
1 558 392
150 461
257 744
975 967
174 220
4 800 393
3 480 117
1 320 276
–
–
1 930 999
463 665
1 467 334
1 106 125
642 778
463 347
5. Other receivables
Grants
Value Added Tax
Staff loans
Other receivables
1 049 848
589 572
118 741
330 248
2 088 409
1 450 000
1 216 896
164 272
170 997
3 002 165
1 907 513
781 384
6. Trade and other payables
Trade payables
7. Cash generated from activities
Net surplus
Adjustment for: Depreciation and amortisation
Interest received
Impairment loss
Loss on disposal of assets
Changes in working capital
Trade and other payables
Other receivables
34
Afrika Tikkun Annual Report 2010/2011
11 210 215
326 915
(2 259 158)
-
7 917
2 039 885
1 126 129
913 756
11 325 774
17 533 965
302 844
(1 831 591)
95 122
(7 893 766)
(6 210 748)
(1 683 018)
8 206 575
Afrika Tikkun Annual Report 2010/2011
35
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
Year ended 28 February 2011
9. Related parties
Year ended 28 February 2011
2010
R
R
10.Financial risk management
Relationships
Entity controlled by key management
Trust for the benefit of Afrika Tikkun Afrika Tikkun Australia, Lubman (Proprietary) Limited,
MaAfrika Tikkun Endowment Fund
Members of key management H A Rosenberg
A Forman
M Lubner
B Lubner
Related party transactions Rent paid to related parties R
2010
R
Lubman (Pty) Ltd
344 339
237 528
Rent for premises is paid by Lubman (Pty) Ltd due to the
rental contract being between Lubman (Pty) Ltd and the lessor
at the request of the landlord. Therefore Afrika Tikkun
reimburses Lubman (Pty) Ltd accordingly.
Awards received from related party
MaAfrika Tikkun Endowment Trust
1 049 848
Donations received from related party The Bertie and Ronnie Lubner Foundation 104 100
-
Related party balances
Loans receivable from related parties
MaAfrika Tikkun Endowment Trust Afrika Tikkun Australia
917 346
889 250
-
Amount payable to related party
Lubman (Proprietary) Limited
45 087
-
Afrika Tikkun Annual Report 2010/2011
Liquidity risk
The company manages liquidity risk by monitoring forecast
cash flows and ensuring that adequate cash resources and
unutilised borrowing facilities are maintained.
11.Designated funds
36
2010
R
R
1 450 000
Funds have been designated to projects in accordance with
donor requests as indicated below:
Community Center Management
Community Care Givers’ Programmes Early Childhood Development Programmes
The Orphan and Vulnerable Child Centres
Youth Development Programmes
Feeding Scheme / Youth Kitchen
Community Skills Programme
Capital Expenditure
General / Head Office
1 900 000
1 000 000
1 258 000
-
2 953 556
2 230 200
-
7 152 950
1 670 825
4 844 143
7 422 300
450 000
1 398 245
1 000 000
1 500 000
5 700 259
18 165 531
22 314 947
Included in the above designated funds is a Lotto donation received of R9 030 325 (2010: R17 924 123).
Afrika Tikkun Annual Report 2010/2011
37
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
COMPREHENSIVE SURPLUS STATEMENT
Year ended 28 February 2011
2011 Total
Orange Farm-TP
Diepsloot
Alexandra
Hillbrow
Delft
Mfuleni
R
R
R
R
R
R
R
Net Fundraising
54 856 873
Donations raised
61 327 978
Marketing and fund raising costs
(6 471 105)
Interest received
2 259 158
Sundry income
1 023 998
Total income received
58 140 029
Head office expenditure
3 464 970
Total project expenditure
43 464 844
Central management project costs
307 849
Community caring programmes 28 793 786
5 279 844
5 771 741
3 187 274
1 363 293
7 529 430
5 662 203
The Community Caring Management Programme
9 833 278
1 866 772
2 233 376
1 610 546
767 375
1 609 700
1 745 508
The Community Care Impact
2 618 587
760 942
714 119
591 637
551 289
-
600
Feeding Scheme 3 247 094
530 979
383 525
137 688
22 516
658 727
613 659
Community Centre transport costs
4 926 959
1 292 029
1 386 458
386 406
-
759 510
1 102 556
Youth Development Programme
2 182 439
319 904
417 029
275 788
22 112
689 259
458 347
Early Childhood Development
221 241
26 650
77 735
-
-
29 991
86 865
Vegetable Support Garden 659 160
229 909
180 111
120 025
-
63 511
65 604
Care of the elderly 5 987 028
252 660
379 388
47 183
-
3 718 733
1 589 065
Health services
18 000
-
-
18 000
-
-
Capital expenditure for community caring programmes
12 567 808
5 160 112
1 075 967
5 033 206
687 086
-
611 436
Non-core projects
1 795 402
REACTION – Johannesburg (Outside of community projects)
9 056
Employment creation project – National Development Agency
735 733
OSSAC
289 597
Skills Endowment Fund
95 478
Ancillary social projects – specifically designated
665 538
Net funds for the year including designated funds
11 210 215
Total project expenditure by centre
41 234 688
10 313 050
6 847 708
8 220 480
2 050 380
7 529 430
6 273 639
38
Afrika Tikkun Annual Report 2010/2011
Afrika Tikkun Annual Report 2010/2011
39
AFRIKA TIKKUN (ASSOCIATION INCORPORATED UNDER S21 OF THE COMPANIES ACT)
COMPREHENSIVE SURPLUS STATEMENT
Year ended 28 February 2011
2010 Net Fundraising Donations raised Marketing and fund raising costs Interest received Total income received Head office expenditure
Total project expenditure Central management project costs Community caring programmes
The Community Caring Management Programme
The Community Care Impact Feeding Scheme Community Centre transport costs Youth Development Programme Early Childhood Development Vegetable Support Garden Care of the elderly Health services Capital expenditure for community caring programmes Non-core projects REACTION – Johannesburg (Outside of community projects) Employment creation project – National Development Agency OSSAC Skills Endowment Fund Ancillary social projects – specifically designated Total
R
40 649 294
46 124 149
(5 474 855)
1 831 591
42 480 884
(2 729 650)
(22 217 269)
1 215 851
16 534 007
3 484 150
2 139 089 1 942 646 476 305 3 064 651 738 111 212 026 1 450
4 475 578 2 927 426 1 539 985
52 101
667 738
239 278
83 746
497 122
Net funds for the year including designated funds 17 533 965
Total project expenditure by centre
19 461 433 40
Afrika Tikkun Annual Report 2010/2011
Orange Farm-TP
R
Diepsloot
R
Alexandra
R
Hillbrow
R
Delft
R
Mfuleni
R
2 774 273
583 279
452 441 568 052 174 046 560 921 315 262 12 970 –
107 302 1 749 054 2 582 356
691 562
322 026 458 640 113 445 597 314 261 383 70 045 –
67 939
513 592 1 454 939
619 492
184 354
287 221 131 890 218 375 12 159 –
1 450 –
246 682 319 070
169 763
–
–
–
–
149 307 –
–
–
116 995 5 214 720
705 923
542 233
311 127 31 451 863 887 –
47 275 –
2 712 824 –
4 188 648
714 131
638 035
317 606
25 473
824 154
–
81 736
–
1 587 513
301 103
4 523 327 3 095 948 1 701 621 436 065 5 214 720 4 489 751
Afrika Tikkun Annual Report 2010/2011
41
MaAFRIKA TIKKUN ENDOWMENT TRUST
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES
Report on the Financial
Statements
We have audited the accompanying
financial statements of MaAfrika Tikkun
Endowment Trust which comprise
the trustees’ report, the statement of
financial position as at 28 February 2011,
and the statement of comprehensive
income for the year then ended, and
a summary of significant accounting
policies and other explanatory notes, as
set out on pages 43 to 48.
Trustees’ Responsibility for the Financial
Statements
The trustees are responsible for the
preparation and fair presentation
of these financial statements in
accordance with the basis of
accounting as described in note
1 to the financial statements. This
responsibility includes: designing,
implementing and maintaining internal
control relevant to the preparation
and fair presentation of financial
statements that are free from material
misstatement, whether due to fraud
or error; selecting and applying
appropriate accounting policies; and
making accounting estimates that are
reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an
opinion on these financial statements
based on our audit. We conducted our
42
Afrika Tikkun Annual Report 2010/2011
audit in accordance with International
Standards on Auditing. Those standards
require that we comply with ethical
requirements and plan and perform the
audit to obtain reasonable assurance
whether the financial statements are
free from material misstatement.
An audit involves performing
procedures to obtain audit evidence
about the amounts and disclosures
in the financial statements. The
procedures selected depend on the
auditors’ judgement, including the
assessment of the risks of material
misstatement of the financial
statements, whether due to fraud or
error. In making those risk assessments,
the auditors consider internal control
relevant to the entity’s preparation
and fair presentation of the financial
statements in order to design audit
procedures that are appropriate in
the circumstances, but not for the
purpose of expressing an opinion
on the effectiveness of the entity’s
internal control. An audit also includes
evaluating the appropriateness
of accounting policies used and
the reasonableness of accounting
estimates made by the trustees, as well
as evaluating the overall presentation
of the financial statements.
TRUSTEES’ REPORT
Year ended 28 February 2011
The Endowment Trust controls assets
valued at R20 349 383 (2010: R19
002 903). The accumulated surplus
comprises capital donations received
from Donors and Broad Based Black
Empowerment equity transactions.
Included in this surplus is an amount
of R1,055,040 where the income
generated is designated to Afrika
Tikkun Skills development and transport
programmes.
Audit opinion
In our opinion, the accompanying
financial statements have been
prepared in all material respects
in accordance with the basis of
accounting described in note 1 to the
financial statements.
Chartered Accountants (S.A.)
Registered Auditors
Sandton
17 August 2011
Per : GM Chaitowitz
The MaAfrika Tikkun Endowment Trust
was registered on 13 October 2006
under No. IT11439/06 to solicit and
acquire donations to enable the trust to
promote the activities of Afrika Tikkun,
an association incorporated in terms
of Section 21 of the Companies Act of
South Africa and registered as a Public
Benefit Organisation.
In accordance with the Trust deed,
any income and capital received will
ultimately vest in Afrika Tikkun and be
applied immediately or remain under
the control of the trustees for future
application.
The Trust did not participate in any new
equity transactions in the financial year
under review and as a result earned
only interest income. The financial
position and results of the Trust are set
out in the financial statements on pages
45 to 48.
The income derived from the Trust
investments amounted to R1 399 797
(2010: R1 777 123). The investment aim
of the trust is to protect capital and
obtain a suitable investment income
return.
The Trust awarded R1 049 848 (2010: R1
450 000) to Afrika Tikkun in the period
under review.
The awards were utilised to fund skills
development and training of Afrika
Tikkun staff as well as beneficiaries
who were accepted into tertiary
institutions for higher education. The
Trust acknowledges with gratitude the
subsidies and support received from
Boston City College which co-funds a
number of these bursaries.
The CEO and Deputy Chairman will
continue their efforts of acquiring
additional share allocations.
Trustees
The trustees in office at the date of this
report were: B A Khumalo, M I Lubner, M
Singer Saul, S Melnick, and J Naidoo.
Monica Singer Saul
Chairman: MaAfrika Tikkun Endowment
Trust
We believe that the audit evidence
we have obtained is sufficient and
appropriate to provide a basis for our
audit opinion.
Afrika Tikkun Annual Report 2010/2011
43
MaAFRIKA TIKKUN ENDOWMENT TRUST
TRUSTEES’ RESPONSIBILITIES AND APPROVAL OF THE ANNUAL
FINANCIAL STATEMENTS
MaAFRIKA TIKKUN ENDOWMENT TRUST
STATEMENT OF FINANCIAL POSITION
Year ended 28 February 2011
Year ended 28 February 2011
The annual financial statements set out
on pages 45 to 48 are the responsibility
of the trustees.
other things, will ensure the preparation
of financial statements that achieve fair
presentation.
The trustees are responsible for selecting
and adopting sound accounting
practices, for maintaining an adequate
and effective system of accounting
records, for the safeguarding of assets,
and for developing and maintaining a
system of internal control that, among
The presentation and disclosures
contained in the financial statements
are not required or intended to and
do not comply, in all respects, with
the requirements of South African
Statements of Generally Accepted
Accounting Practice.
After conducting appropriate
procedures the trustees are satisfied
that the trust will be a going concern
for the foreseeable future and has
continued to adopt the going concern
basis in preparing the financial
statements.
The annual financial statements were
approved by the trustees on 17 August
2011 and signed on their behalf by:
Notes
Assets
2010
R
R
Non-current assets
Unlisted investments 2
3
3
Current assets Other receivables Cash and cash equivalents 20 349 380
205 013
20 144 367
19 002 900
1 904 936
17 097 964
Total assets 20 349 383
19 002 903
Founding donation 100 100
Accumulated surplus Current liabilities
Other payables
19 227 038
19 002 803
1 122 245
-
Total capital 20 349 383
19 002 903
Capital
Trust capital
TRUSTEES
M Singer Saul
44
Afrika Tikkun Annual Report 2010/2011
M I Lubner
Afrika Tikkun Annual Report 2010/2011
45
MaAFRIKA TIKKUN ENDOWMENT TRUST
MaAFRIKA TIKKUN ENDOWMENT TRUST
STATEMENT OF COMPREHENSIVE INCOME
NOTES TO ANNUAL FINANCIAL STATEMENTS
Year ended 28 February 2011
Notes
Income Interest received Expenses Year ended 28 February 2011
2010
R
R
1. Accounting Policies
1 399 797
1 777 123
(125 714)
(40 884) Bank charges Awards (1 523)
(124 191)
(1 144)
(39 740)
Net surplus before awards and investment activities Capital award to MaAfrika Tikkun Net surplus for the year
Accumulated surplus brought forward
Accumulated surplus carried forward
1 274 083
(1 049 848)
224 235
19 002 803
19 227 038
1 736 239
(1 450 000)
286 239
18 716 564
19 002 803
The financial statements are prepared on the historical cost basis except where otherwise stated.
1.1 Investments
Investments are initially measured at cost including transaction costs. Investments are written down if the
trustees are of the opinion that their value is impaired.
1.2 Revenue
Revenue comprises interest received from the investments.
Interest is recognised on the effective yield basis over the period to maturity.
2. Unlisted investments
No of shares
Cost
R
Sasol Inzalo Groups Limited 136 612 2 500 000 Provision for impairment The trust holds a proportional interest
of shares in Sasol Limited through
Sasol Inzalo Groups Limited. The
shares have been pledged as security
for finance provided to Sasol Inzalo
Groups Limited.
Moty Capital Partners Consortium 101 922 436 928 Provision for impairment The trust holds a 6% interest in Moty
Capital Partners Consortium which
translates into an indirect holding of
101 922 Barloworld Limited shares.
The shares have been pledged as
security for finance provided to Moty
Capital Partners Consortium.
Cape Gannet Properties 261 (Pty) Ltd 8 000 000 1
2010
Value
R
2 500 000 (2 499 999) 1
2009
Value
R
2 500 000
(2 499 999)
1
436 928 (436 927) 1
436 928
(436 927)
1
1
The trust holds a 10% interest in Cape
Gannet Properties 261 (Pty) Ltd which
translates into an indirect holding of
8 000 000 Redefine Income Fund
Limited shares. These shares are
secured against finance provided to
Cape Gannet Properties 261 (Pty) Ltd.
46
Afrika Tikkun Annual Report 2010/2011
1
3
Afrika Tikkun Annual Report 2010/2011
47
MaAFRIKA TIKKUN ENDOWMENT TRUST
PKF and Afrika Tikkun
NOTES TO ANNUAL FINANCIAL STATEMENTS
Year ended 28 February 2011
3. Donations received
Afrika Tikkun empowers and develops
sustainable communities, which is
consistent with recent government
and business initiatives to focus on all
aspects of sustainable development.
PKF is proud to assist Afrika Tikkun as
auditors and accountants with the
financial aspects of their endeavours
and look forward to a long and
mutually beneficial relationship.
The changes Afrika Tikkun have
implemented, evolving from charitable
interventions to a developmental
organisation with significantly
improved controls and sustainable
business models, ensures delivery and
accountability in their activities.
Garron Chaitowitz
Director
PKF chartered accountants & business
advisers
No donations were received during the financial period under consideration.
Donations received during prior periods relate to Capital Funds which have been prescribed by the Donor to be
used as a Capital Endowment fund.
The income generated from these Capital sums must be utilised in terms of the Donors’ specific request, where
the income is designated to various services which Afrika Tikkun provides on an annual basis.
4.Taxation
No provision has been made for South African Taxation as the income and expenses of the trust vests in the
beneficiary, Afrika Tikkun (an association incorporated under Section 21 of the Companies Act).
5. Accumulated surplus
The foresight, wisdom and
professionalism that management
has demonstrated in recognising and
implementing these changes, not only
offers empowerment and hope to
communities, but ensures its sponsors
worthwhile and significant returns.
Included in accumulated surplus (before impairments) are capital awards received from the following donors,
whereby the income generated from these funds will be utilized according to their designation:
Apex-Hi Limited Metz Family MaAfrika Tikkun – Transport fund MaAfrika Tikkun – Skills endowment fund 48
Afrika Tikkun Annual Report 2010/2011
R
18 700 000 305 040 250 000 500 000 19 755 040 2010
R
18 700 000
305 040
250 000
500 000
19 755 040
Afrika Tikkun Annual Report 2010/2011
49
Our valued partners
Cape Mental Health
CDP
Central Gauteng Triathlon
Childline
City of Cape Town – City Parks
Department
City of Cape Town – Department of
Social Development
City of Cape Town – Department of Sport
and Recreation
City of Cape Town: Department of Heath
Domestic Bliss
Early Learning Resource Unit
Empilweni
FAMSA
Field Band Foundation
Gauteng Department of Health and
Social Development
Greater Soweto
Hearts of Men
Hippy SA
JAG
Learning Library
loveLife
MAD Multisport
Mindset Learning
South Africa
International Offices
Johannesburg Office
Ground Floor Eastwood Building
57 6th Road
Hyde Park
Johannesburg
www.afrikatikkun.org
Tel 27 11 325 5914
Fax 72 11 325 5911
Australia
[email protected]
United Kingdom & Europe
Milton Park
Stroude Road
Egham
Surrey
TW20 9EL
Tel: +44 (0)1784 263 584
Cape Office
Building 23 Unit 1
Waverley Business Park
Kotzee Road
Mowbray
7700
Tel + 27 21 448 0120
Fax 086 668 2878
13/24 Fairlight Street, Fairlight. NSW.
Australia. 2094.
Tel:: +61 (0)2 8231 6661
[email protected]
Mosaic
NACCW
Nedbank Chess Kids Academy
POWA
Rape Care Centre
Rape Crisis
Shonaquip
Simelela
Teddy Bear Clinic
Tomorrow Trust
Western Cape Department of Heath
Western Cape Department of Social
Development
United States of America
535 East
72nd Street #2a
New York 10021
United States of America
Tel + 212 327 1483
[email protected]
[email protected]
27 Chemin du Petit Veyrier, 1255,
Veyrier, Geneva, Switzerland
Tel:+ 41 22 784 3126
[email protected]
[email protected]