Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698835429643.pdf (South Africa)
1 MDDA ANNUAL REPORT This annual report of the Media Development and Diversity Agency (MDDA) describes and details the activities of the Agency for the period 1 April 2022 to 31 March 2023.

This report has been prepared for submission to the Executive Authority and the Parliament of South Africa in line with the requirements of the Public Finance Management Act (No 1 of 1999) and the MDDA Act (No 14 of 2002).
The Media Development and Diversity Agency (MDDA) is a statutory development agency for promoting and ensuring media development and diversity, set up as a partnership between the South African Government and major print and broadcasting companies to assist in (amongst others) developing community and small commercial media in South Africa.

It was established in 2003, in terms of the MDDA Act No.
14 of 2002 and started providing grant funding to projects on 29 January 2004 2 MDDA ANNUAL REPORT TABLE OF CONTENTS PART A: GENERAL INFORMATION 1.

2.

3.

4.

5.

6.

7.

8.

8.1.

8.2.

8.3.

9.

10.


PUBLIC ENTITY’S GENERAL INFORMATION LIST OF ABBREVIATIONS/ACRONYMS MINISTER IN THE PRESIDENCY FOREWORD DEPUTY MINISTER IN THE PRESIDENCY FOREWORD FOREWORD BY THE CHAIRPERSON CHIEF EXECUTIVE OFFICER’S OVERVIEW STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT STRATEGIC OVERVIEW Vision Mission Values LEGISLATIVE AND OTHER MANDATES ORGANISATIONAL STRUCTURE PART B: PERFORMANCE INFORMATION 1.

2.

2.1.

2.2.

2.3.

2.4.

3.

4.

5.


AUDITOR’S REPORT: PREDETERMINED OBJECTIVES OVERVIEW OF PERFORMANCE Service Delivery Environment Organisational environment Key policy developments and legislative changes Progress towards achievement of institutional Impacts and Outcomes INSTITUTIONAL PROGRAMME PERFORMANCE INFORMATION REVENUE COLLECTION CAPITAL INVESTMENT PART C: GOVERNANCE PART D: HUMAN RESOURCE MANAGEMENT PART E: PFMA COMPLIANCE REPORT PART F: ENVIRONMENTAL LANDSCAPE AND FUNDING PART G: FINANCIAL INFORMATION 1.

2.
2.

REPORT OF THE EXTERNAL AUDITOR ANNUAL FINANCIAL STATEMENTS 5 6 8 10 11 12 14 15 15 15 15 16 17 24 24 24 26 26 26 29 36 36 90 97 3 MDDA ANNUAL REPORT PART A: PART A: GENERAL INFORMATION 4 MDDA ANNUAL REPORT PART A: 1.

PUBLIC ENTITY’S GENERAL INFORMATION 1.

PUBLIC ENTITY’S GENERAL INFORMATION REGISTERED NAME: Media Development and Diversity Agency REGISTRATION NUMBER: PE63 PHYSICAL ADDRESS: SABC Auckland Park Campus POSTAL ADDRESS: GSM Building 26 Canary Road Auckland Park 2006 P.O.
Box 42846 Fordsburg Johannesburg South Africa 2033 TELEPHONE NUMBER/S: Tel: +27 (0)11 643 1100 EMAIL ADDRESS: WEBSITE ADDRESS: info@mdda.org.za https://www.mdda.org.za/ EXTERNAL AUDITORS: Auditor-General South Africa BANKERS: Absa Bank South African Reserve Bank COMPANY/ BOARD SECRETARY Yolanda Du Preez 5 MDDA ANNUAL REPORT LIST OF ABBREVIATIONS/ACRONYMS LIST OF ABBREVIATIONS/ACRONYMS 4IR Fourth Industrial Revolution AFS AGSA APP ARC BBBEE CATHCA CEO CFO CIA CPW CR Annual Financial Statements Auditor-General of South Africa Annual Performance Plan Audit Risk Committee Broad-Based Black Economic Empowerment Catholic Health Care Association of Southern Africa Chief Executive Officer Chief Financial Officer Certified Internal Auditor Child Protection Week Community Radio CSCM Community and Small Commercial Media DoC EAP EDF EE Department of Communications Employee Assistance Program Economic Development Fund Employment Equity EHWP Employee Health and Wellness Programme ERM FPB GBV GCIS GRAP HPCSA ICASA LCCL(SA) LGBTQI+ M&E MDDA MEC Enterprise Risk Management Film and Publications Board Gender-based violence Government Communication Information Systems Generally Recognised Accounting Practice Health Professional Council of South Africa Independent Communications Authority of South Africa Leadership Conference of Consecrated Life South Africa Lesbian, Gay, Bisexual, Transgender, Queer, and Intersex Monitoring and evaluation Media Development and Diversity Agency Member of Executive Council MICT SETA The Media, Information and Communication Technologies Sector Education and Training Authority MoU MTEF Memorandum of Understanding Medium Term Expenditure Framework 6 MDDA ANNUAL REPORT LIST OF ABBREVIATIONS/ACRONYMS LIST OF ABBREVIATIONS/ACRONYMS NAB NDP National Association of Broadcasters National Development Plan NEMISA National Electronic Media Institute of South Africa NPC NPO NSG OBE PESTLE PFMA PPE QoS SABC SABDC SAICA SANEF SCM SEDA SP SWOT TR Non-Profit Company Non-Profit Organisation National School of Government Outside Broadcast Equipment Political, Economic, Social, Technological, Legal and Environmental Public Finance Management Act, Act 1 of 1999 Personal Protective Equipment Quality of Service South African Broadcasting Corporation South African Book Development Council South African Institute of Chartered Accountants South African National Editors’ Forum Supply Chain Management Small Enterprise Development Agency Strategic Plan Strengths, Weaknesses, Opportunities, Threats Treasury Regulations UNESCO United Nations Educational, Scientific and Cultural Organisation USAF USO Universal Service and Access Fund Universal Service Obligations 7 MDDA ANNUAL REPORT MINISTER IN THE PRESIDENCY FOREWORD MINISTER IN THE PRESIDENCY FOREWORD diminished indigenous languages and cultural groups b; Encourage the development of human resources and training, and capacity building within the media industry, especially amongst historically disadvantaged groups c; Encourage channeling of resources to the community and small commercial media sectors d; Raise public awareness with regard to media development and diversity issues and support initiatives which promote literacy and a culture of reading For the past 20 years the MDDA has been a major contributor to diversification of the media landscape through its initiatives to build a thriving community and small commercial media sector.
Through the grant funding, the Agency has channeled resources to the community and small commercial media sector, thus contributing towards the expansion of ownership and control as well as access to media by historically disadvantaged communities.

With the help of the MDDA, community radio stations have built functional studios with state-of- the-art broadcast equipment and managed to remain on air, many of them in remote locations.
Media projects have also managed set up news departments producing daily news bulletins reporting on issues of significance for the benefit of their communities.

Since its inception, the MDDA has funded 586 community media projects, a great feat considering challenges within the operating environment.

Whilst broadly, the recognition of community media has been growing, the sector still occupies marginal positions compared to its mainstream counterparts and continues to face sustainability challenges.
South Africa continues to face a sluggish growth in the economy which continues to affect various sectors including the media sector as well as other related sectors upon which the media sector relies for revenue and growth.

Community media projects, both print and broadcast are primarily dependent on advertising for income.

Many projects are located in communities that have limited consumer power and thus do not represent attractive markets to private sector advertisers.
The MDDA should thus continue to work with current funders from the broadcast sector, while also encouraging the mainstream print sector to revive their support and look to broaden the MDDAs funding base.

Advances in technology have also disrupted the media industry, with broadcasters moving to digital platforms and print media losing audiences to online media.
With that said, South Africa still has an urban-rural divide on media consumption, particularly as many people remain offline due to high data costs, which strengthens the case for more support and survival for community media platforms.

Community media must however be dynamic and agile, to proactively recognize the constraints and opportunities within the operating environment and be able to adapt and innovate for their survival and sustainability.
I present to you the MDDA’s Annual Report for the financial year 2022/2023.

The MDDA continues to make great strides in the execution of its mandate to promote the development and diversity of media in South Africa by supporting the establishment and sustainability of community and small commercial media through provision of grant funding and capacity building mechanisms.
The media, aptly dubbed the fourth estate, remains one of the key pillars of our democracy and is integral to promoting and deepening participatory democracy through providing access to reliable, relevant and timely information.

Community media becomes more so important as it provides a much-needed platform to often marginalized communities to receive information, and express their views and aspirations in their own indigenous languages.
For the past 20 years, the MDDA has undertaken its stellar work guided by various pieces of legislation as set out in the MDDA Act, which are in line with national policy priorities and the Constitution (Act No.108 of 1996).

These are to promote media development and diversity, media freedom, the right to freedom of expression and freedom to receive and impart information or ideas.
The following sections are particularly important, • Section 15 (1) Everyone has the right to freedom of conscience, religion, thought, belief and opinion • Section 16: Everyone has a right to freedom of expression • Section 32: Everyone has a right to access to information It is for the reasons above that Section 3 of the MDDA Act, 2002 mandates the Agency to a; Encourage ownership of, and access to media by historically diminished groups as well as by historically 8 MDDA ANNUAL REPORT MINISTER IN THE PRESIDENCY FOREWORD MINISTER IN THE PRESIDENCY FOREWORD As the Presidency, we do not take our role at the MDDA for granted, because we are mindful that South Africans are at the heart of all our work, and we are therefore committed to empowering every citizen with relevant and accurate information so they can become agents of meaningful change in their lives.
Community media will again prove to be a critical tool as we prepare for the upcoming 2024 general elections.

As it creates a platform for dialogue and debate, acting as an advocate for democracy, rule of law and good governance.

Moreover, well-informed voters are vital for an accountable and responsive government.
We will therefore continue to support the MDDA to maintain its agenda of enabling access, ownership, diversity and the promotion of marginalized languages and communities through the community media development project.
MS KHUMBUDZO NTSHAVHENI, MP MINISTER IN THE PRESIDENCY DATE: 31 AUGUST 2023 9 MDDA ANNUAL REPORT DEPUTY MINISTER IN THE PRESIDENCY FOREWORD DEPUTY MINISTER IN THE PRESIDENCY FOREWORD kitted up with a design that utilises high-end professional broadcast equipment, and expands the community radio stations footprint, making sure that they can cover the full radius as per their ICASA license prescriptions.
The South African Constitution requires government to provide citizens with information that is accurate, timely and proactive to empower and improve their lives.

The community media sector, funded through the MDDA, played that role to exception in 2020, when the country was under complete lockdown.

The agency ensured that all citizens got access to information that saved many lives, timeously, and in a language of their choice.
This excellent delivery on the Agency’s mandate confirms that the South African story must be told by South Africans united in their diversity, in their respective languages rooted in their diverse cultures.

Despite the MDDA’s restrictive budget, the Agency has been able to carry out different aspects of its mandate to a greater degree.
This is confirmed by the continued growth of both community and small commercial media with radio audiences managing to reach an impressive 25% of South African audiences and print media being read by about 25 million monthly readers.

This media is also being published or broadcast in all indigenous languages reflecting the country’s diverse demographics.

Training and capacity building interventions have also been rolled out to support projects that have experienced gaps.
As the Presidency, we fully support the MDDA and local media’s ability in driving the transformational agenda outlined in the National This Annual Report consolidates a very fruitful year where the agency led with conviction, empowered, and supported our vital community media sector through an exciting but uncertain media landscape.
As the Agency looks forward to celebrating 20 years in existence within the community media sector, we look back with pride at the achievements gained in the value proposition of working towards offering integrated development services and resources that enable media development and diversity.

With the MDDA focus being on supporting projects in historically disadvantaged areas, the Agency’s beneficiary projects are weighted heavily towards rural and semi-rural areas.
Nearly 90% of the community broadcast projects funded by the MDDA are located in rural and peri- urban areas.

Gender representation is also a focus area but there is still Development Plan (NDP).

much work to be done as only some 20% of station managers of MDDA broadcast projects are women.

Similarly with Community and Small Commercial Media, nearly 60% of projects are located in rural and peri-urban areas, while just over 25% of small commercial projects are owned by women.
More encouraging is the youth owned projects, with nearly 50% of the ownership residing with young people.

________________________________ MS NOMASONTO MOTAUNG, MP DEPUTY MINISTER IN THE PRESIDENCY DATE: 31 AUGUST 2023 During 2022/2023, the MDDA continued its vital work of supporting the establishment and development of community and small commercial media both through funding and capacity building support.
This work took cognisance of the District Development Model, which requires the MDDA to ensure that all 52 districts and metropolitan municipalities are serviced by sustainable and people-centred community and small commercial media.

In the past financial year, the Presidency, in partnership with the MDDA, traversed this country unveiling more than 25 state of the art studios in community radio stations.
These on-air and production studios are 10 MDDA ANNUAL REPORT DEPUTY MINISTER IN THE PRESIDENCY FOREWORD FOREWORD BY THE CHAIRPERSON FOREWORD BY THE CHAIRPERSON and expansion of media ownership and control by said communities.

We are also proud to say that these thriving community media platforms publish and broadcast news and information in all the eleven official languages spoken in South Africa.
In May to July of 2022, the MDDA opened the annual Call for Grant Funding Applications window, for the 2022/23 grant funding cycle.

The agency received two hundred and sixty-six (266) applications in total, with eighty-four (84) coming from community broadcast projects and one hundred and eighty-two (182) coming from community print and online/ digital media projects.
After rigorous discussions and a lot of, to and fro, between the limited budget the agency has and the vast need as represented by the number of applications received, as the Board of the MDDA we approved twenty-nine (29) community media projects for the 2022/23 grant funding cycle.

The projects approved for grant funding included twenty (20) community radio and nine (9) community print and As the Board Chairperson of the MDDA, I present this Annual Report for online/digital projects.
the 2022/23 financial year- a year where we have navigated negative publicity, increased litigation a revolving door in staff turnover and When looking at the approvals versus the applications, one can the remnants of the effects of COVID 19 on the sector.

Despite all this, immediately see that the scales do not balance.

A bigger budget is needed financial year 2022/23 marks a huge milestone for the MDDA as we are to answer the support needs of the community media sector.
While the in the beginning of our 20-year anniversary celebrations.
It is 20 years MDDA might not by itself bring about the complete transformation of the since the Media Development and Diversity Agency, the MDDA, funded media sector, through its funding, the agency facilitates, research and its first community and small commercial media projects, supported by a play a catalytic role in altering the media landscape in a way that will tripartite partnership that included the Government, and the mainstream be conducive to broader changes.
The difficulties that the Agency has broadcast and print sectors.

had to contend with in the past year have had significant impact on the internal state of affairs.
Our focus as the board has been on maintaining The MDDA takes the lead in its work from the National Development standards of accountability and ethical conduct and we have not shied Plan (NDP) theme, “Our future, make it work,” which means that we away from uncomfortable issues in our effort to get the Agency on to a must in everything that we do endeavour to see every South African growth trajectory.
The support that we have enjoyed from the Minister in having access to information in a language of their choice.
If done the Presidency and the GCIS as our shareholder have strengthened our right, this deliverable will ensure that South African citizens, especially resolve as Board in ensuring that this institution which is so critical to the previously disadvantaged communities, will fully understand their the advancement of our democracy continues to operate transparently democratic rights and responsibilities.

The agency was established in and to the highest standards of corporate governance.
The Management 2003, in terms of the MDDA Act No.

14 of 2002 and started providing of the Agency has been resilient throughout and despite the regression in grant funding to projects on 29 January 2004.

The agency’s mandate is audit opinion, the Agency stands in a better position to defend its funding encapsulated in Section 3 of the MDDA Act of 2002, from Section 16 and decisions and how it metes out the support to the sector.

The staff who 32 of the Constitution Act No.


108 of 1996, thereby providing for freedom possibly could have been a casualty of the situation did their utmost of expression and access to information.

best to ensure that internal issues did not impact the overall delivery of The MDDA’s work is dependent on a thriving economy, as we continue to services and support to the sector.
play a critical role in working towards ensuring a flourishing, sustainable My heartfelt appreciation to the Minister in the Presidency, the Director- and robust local media sector – a sector which supports nation building General of the GCIS, the Board, the Audit and Risk Committee and the as well as defends and strengthens our democracy, social cohesion and staff of the agency for the dedication and diligence in ensuring that we good governance.
Our funding has been directly affected by the state of continue to keep afloat.

The qualified audit opinion may be a regression, the economy.

The significant strides made in media freedom, the media but it it is also an opportunity for us to regroup and redefine the path in landscape across South Africa do not uniformly exhibit a fully-entrenched pursuit of the next era in the history of the MDDA.
diversity and recognition of indigenous languages and culture, while the local media face ongoing sustainability challenges – only exacerbated by the virus currently plaquing our country.
Keeping our mandate in mind, the MDDA has through its grant funding contributed towards access to information by previously disadvantaged communities and the growth PROF. HLENGANI MATHEBULA CHAIRPERSON OF THE BOARD 11 MDDA ANNUAL REPORT CHIEF EXECUTIVE OFFICER’S OVERVIEW CHIEF EXECUTIVE OFFICER’S OVERVIEW Irrespective of the whether these reports are factual or merited, they have had significant impact on the public’s perception of the MDDA.
Media plays an influential role in shaping public opinion, and therefore negative coverage can create skepticism and mistrust among the public.

Secondly, negative coverage can strain relationships with stakeholders, including the government, funders, civil society, and the public.
Like any organisation, the MDDA is not immune to negative coverage and the Agency has made concerted efforts in rebuilding the MDDA brand and maintaining levels of integrity and being ethical in how it has responded to and engaged around these reports.

Sustainability of the sector (Broadcast) The economic conditions in the country have been acutely felt by the community media sector.
The sector continues to face financial challenges due to over-reliance on advertising revenue which leads to The period 2022/23 has been a challenging one for the MDDA.

Three defaulting on SENTECH fees.

As at 31 March 2023, the cumulative debt issues characterised our trading period and significantly impacted owed to SENTECH by the community broadcasting sector was in excess on our people, operations, brand and projects for the period under of R 84 million in outstanding signal distribution fees.
This has resulted review, namely: high staff turnover, negative media coverage and the in several community radio stations being switched off by SENTECH.

The sustainability of the community media sector especially in relation to rising debt by the community broadcasters poses a threat to both the broadcast.

High staff turnover During the period under review the Agency experienced a significant number of resignations within a short-period of time.
This had a profound impact on morale and organisational culture.

The resignations created instability and uncertainty among remaining employee resulting in morale plummeting.

Inevitably the overall organisational culture was negatively affected, leading to a decrease in engagement and motivation.
The resignations also led to temporary disruption in daily operations and the loss of key personnel in the Office of the Chief Financial Officer meant that there was a slow down in processes and reduction in the overall status of internal controls.

In the short term, viability of SENTECH and the CMSM sector sustainability.
Furthermore, it risked compromising the MDDA’s mandate which is facilitating ownership, control, and access to information and content production of the community media by historically disadvantaged communities.
In the face of unprecedented challenges, the MDDA has demonstrated resilience and adaptability, reaffirming our commitment to delivering excellence in all aspects of our operations and delivering on our mandate of diversifying the media landscape, while strengthening and growing the footprint of the community media sector.
Throughout the 2022/23 financial year, the agency navigated dynamic economic conditions, took some hard knocks that might have impacted the value of the brand attempted to maintain effective systems and continued we have however been proactive and put in measures to help minimise operations.

the negative impacts and facilitate a smoother recovery process.

Negative Media Coverage The MDDA plays a pivotal role in promoting media development and diversity in South Africa.
As an institution entrusted with the responsibility to foster democratic media practices, it has received significant negative media coverage during the period under review.

Issues ranging from alleged poor governance and flawed grant processes have overtaken the Agency’s efforts to promote a diverse media landscape by encouraging marginalised voices to participate in media production and the MDDA’s role in providing resources and support to community and small commercial media projects.
This report concludes the third year of the five-year strategic plan for the Agency.

The presentation of the Annual Report provides MDDA with an opportunity to highlight the implementation of our mandate in terms of creating an enabling environment for media development and diversity.
This must reflect the needs and aspirations of all South Africans, redressing exclusion and marginalisation of disadvantaged communities and persons from access to the media and the media industry and promoting media development and diversity.

The promotion of development and diversity in the media is done through support to community and small commercial media projects of both a financial and non-financial nature.
12 MDDA ANNUAL REPORT CHIEF EXECUTIVE OFFICER’S OVERVIEW CHIEF EXECUTIVE OFFICER’S OVERVIEW During the period under review the Agency participated in the review The MDDA Internship Programme stands as a testament to our process of its founding legislation.
As part of the review process led by continued commitment to addressing the unemployment challenges the Shareholder (“the GCIS”), the MDDA Amendment Bill discussions and inclusion is woven into our outreach efforts to ensure that held in August 2022 reviewed the Socio-Economic Impact Assessment this Internship Programme attracts young minds from various System (SEIAS) of the proposed amendments to the MDDA Act.

The backgrounds, experiences, and perspectives.


This has resulted in a SEIAS template was submitted to the State Law Advisor and the GCIS 100% representation of underrepresented groups within our intern continues to engage the State Law Advisor to finalise feedback on the cohort of which 78% were females.

MDDA’s drive for gender diversity Bill.


This process is critical to ensure the agility and relevance of the is overarched by the HR policies that have been revised to ensure that Agency in light of the technological advancements that have occurred they are inclusive and supportive of all gender identities.

Furthermore in the ICT and Comms sector over the last 20 years.

as at 31 March 2023, our board of directors was comprised of 75% In January 2023, the MDDA Board approved the final report of the women.
Community and Small-Commercial Media Sustainability Model I wish to extend my heartfelt gratitude to the Chairperson and his research.

The main objective of the sustainability research was to team of Board Members for their vision, support, leadership and develop a South African Sustainability Model for the CSCM sector wisdom in guiding the MDDA during this turbulent times.
Thank you which categorises the sector according to their ability to self-sustain, to the Executive Management team, Managers and staff for all your partially sustain; and the inability to self-sustain to allow for focused, effort, dedication, commitment, and sheer grit in keeping the Agency responsive and proactive support.

The findings of this research will afloat and operational.
This was a difficult year but each one of you significantly influence how the Agency advocates for the sector and have persevered and have contributed immensely to building the the implementation of the MDDA funding strategy going forward.

MDDA brand.

As a collective, we will continue to invest in rebuilding the company culture, boosting morale, and ensuring employees feel Regretfully, during the period under review the organisation has valued and heard.
regressed in both its performance against predetermined objectives (79%) and audit outcomes (Qualified Audit Opinion).

Financially, the Agency ended the period on an even keel.

Based on our going concern assessment to confirm the entity’s financial health, our current assets against current liabilities illustrate a good short-term posit ion for the entity.
Our revenue is reflecting a positive favorable balance, and in addition to that most of the possible funders are contributing the USAF levy component to the MDDA.

Gender Equality is an essential developmental agenda for South Africa, and the Sector must heed the call to promote women’s empowerment in the workplace.

True to our mandate, diversity, including gender diversity, is one of our greatest strengths.
During the period under review, we have worked diligently to create opportunities for women at every level of our organisation.

We have continued to make strides in increasing the representation of women in management positions, the percentage has grown by 10% compared to the previous financial year, and we are committed to further progress in the years ahead.

______________________ MS NOMKHOSI PETER ACTING CHIEF EXECUTIVE OFFICER 13 MDDA ANNUAL REPORT 7.
STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 7.

PORT STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL RE- To the best of my knowledge and belief, I confirm the following: All information and amounts disclosed in the annual report is consistent with the annual financial statements audited by the Auditor General.

The annual report is complete, accurate and is free from any omissions.
The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.

The Annual Financial Statements (Part G) have been prepared in accordance with the GRAP standards applicable to the public entity.

The Accounting Authority is responsible for the preparation of the annual financial statements and for the judgements made in this information.
The Accounting Authority is responsible for establishing and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual financial statements.
In our opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the public entity for the financial year ended 31 March 2023.

Yours faithfully ________________________ Acting Chief Executive Officer Ms Nomkhosi Peter Date: 31 August 2023 ___________________ Chairperson of the Board Prof. Hlengani Mathebula Date: 31 August 2023 14 MDDA ANNUAL REPORT 8.

STRATEGIC OVERVIEW 8.

STRATEGIC OVERVIEW 8.1.


Vision Accessible, developmental, diversified, and sustainable community and small commercial media.

8.2.

Mission To support the development of a vibrant, innovative, sustainable, and people-centred community and small commercial media sector through resourcing, critical sector insights, capacity-building and ensuring inclusive participation of historically disadvantaged communities.

8.3.
8.3.

Values The guiding principles that inform our organisation’s culture and leadership and management style are embedded in the African ethos of Ubuntu/Botho.

We are developmental in our orientation and character and a responsive, accountable, and empathetic organisation.

This spirit is embedded in the following values that sustain us.

VALUE WHAT THAT MEANS IN PRACTICE Integrity Caring We are honest, trustworthy, transparent, reliable, fair, accountable, and responsible for our actions.
We care for our people, our customers, our communities, industry stakeholders and the environment.

Excellence We strive to achieve the best possible results in everything we do.

We are efficient, effective, service delivery orientated, punctual, performance-driven and work collectively.

Commitment We are passionate, go the extra mile, responsive, have a strong work ethic, are consistent and accessible.
Innovative Future forward, thought leadership, open, dynamic, moving with the times, receptive to new ideas.

15 MDDA ANNUAL REPORT 9.

LEGISLATIVE AND OTHER MANDATES 9.

LEGISLATIVE AND OTHER MANDATES CONSTITUTIONAL MANDATE Section 32: Everyone has a right to access to information.

Section 15 (1) Everyone has the right to freedom of conscience, religion, thought, belief and opinion.
Languages – Section 6 (1)(2) (2) Recognising the historically diminished use and status of the indigenous languages of our people, the state must take practical and positive measures to elevate the status and advance the use of these languages.

Freedom of Expression – Section 16 (1) (a)(b) (1) Everyone has the right to freedom of expression, which includes- (a) freedom of the press and other media.
LEGISLATIVE MANDATE The Media Development and Diversity Agency (MDDA)’s mandate is to: • • • • Create an enabling environment for media development and diversity that reflects the needs and aspirations of all South Africans.

Redress exclusion and marginalisation of disadvantaged communities and persons from access to the media and the media industry.

Promote media development and diversity by providing support primarily to CSCM projects.
Encourage ownership and control of, and access to, media by historically disadvantaged communities as well as by historically diminished indigenous languages and cultural groups.

• Encourage the development of human resources and training, and capacity building, within the media industry, especially among historically disadvantaged groups.

• • Encourage the channelling of resources to the community media and small commercial media sectors.
Raise public awareness regarding media development and diversity issues.

The key concepts in the agency’s mandate that makes up its name are defined in the Act as follows: • Media – means all forms of mass communication, including print, publications, radio, television and new electronic platforms for delivering content.
• Development – means the development of media and infrastructure so that historically disadvantaged communities and persons have access to media as owners, managers, producers, and consumers of media.

• Diversity – regarding media, means access to the widest range of sources and information, as well as equitable representation within the media in general.

• Agency – media development and diversity agency established by section 2 of the Act 16 MDDA ANNUAL REPORT 9.

LEGISLATIVE AND OTHER MANDATES 10.


ORGANISATIONAL STRUCTURE 10.
ORGANISATIONAL STRUCTURE 17 MDDA ANNUAL REPORT MDDA BOARD OF DIRECTORS: PROFILES MDDA BOARD OF DIRECTORS: PROFILES Prof Hlengani Mathebula Appointed to Board: November 2021 MDDA BOARD OF DIRECTORS: PROFILES Qualifications Institution BA, BTH(Hons), Master of Management, PHD University of the North (Limpopo), WBS (Wits Business School) University of Pretoria Area of Expertise: Banking & Finance, T, Media & Communication Governance Significant Boards: Shoprite Holdings (PTY) LTD, HPCSA (Health Professional Council of South Africa) Marina Clarke Appointed to Board: 1 September 2020 Qualifications BA, Advanced Management Programme (NQF7) Being a Director Institution University of Pretoria, Rhodes Business School Institute of Directors in South Africa Area of Expertise: Disability, NPO Management, Training and Capacity Building Significant Boards: Member of the Disability Advisory Committee of the SA Human Rights Commission, Trustee of the Epilepsy SA Educational Trust Brenda Leonard Appointed to Board: 1 September 2020 Qualifications BA Communication Science Advanced Certificate in Media Management Certificate in Media Management, Certificate in Media Development Institution University of Witwatersrand DW-Akademie Area of expertise: Community media, especially radio.
Community development Significant Boards: CPUT Journalism Advisory Board Martina Della Togna Appointed to Board: : 19 October 2017 (1st term) 19 May 2022 (2nd term) Qualifications Institution Master of Fine Arts (MFA) AFDA Area of expertise: Media and Communication Strategy, Film & TV Production – Documentary and Drama, Media Studies Research, Organisational Development Significant Boards: Fort Calata Foundation (NED) Carol Mohlala Appointed to Board: : 19 May 2022 Qualifications Institution BA Media Studies University of Witwatersrand Area of expertise: Media Relations, Digital Media, Social Media, Community Print Media 18 MDDA ANNUAL REPORT MDDA BOARD OF DIRECTORS: PROFILES MDDA BOARD OF DIRECTORS: PROFILES MDDA BOARD OF DIRECTORS: PROFILES Hoosain Karjieker Appointed to Board: November 2021 Qualifications Bcompt Accounting.
Diploma in Internal Auditing Institution UNISA, CPUT Area of Expertise: Audit & Accounting and Media Management Significant Boards: Mail & Guardian, St John’s College, Bhekisisa.
Nadia Bulbulia Appointed to Board: : September 2021 Qualifications Master’s Degree (Humanities), Honours Degree (BADA), Teacher’s Diploma Speech & Drama (LTCL), International Relations Certification Institution Wits University, Trinity College (London), Clingendael Institute (Netherlands) Area of expertise: Policy and Regulation Significant Boards: Previously served on the Boards of: Research ICT Africa, SABC, NFVF, Nemisa, World Summit on Media for Children MDDA ARC MEMBERS: PROFILES Fortune Mkhabela Appointed to ARC: 01 April 2021 Qualifications Bcom Specialisation in Accounting, Honours Bcom Specialisation in Auditing, Certificed Internal Auditor (CIA), Postgraduate Diploma in Management Institution University of Witwatersrand, UNISA, Global Institute of Internal Auditors (IIA), University of Reading (UK) Area of expertise: Risk Management.
Strategy & Leadership.

Internal Auditing Matseliso Shongwe CA (SA) Appointed to ARC: 01 April 2021 Qualifications Bachelor of Accounting Institution University of Witwatersrand Area of expertise: Training and Development.

Quality Assurance.
Quality Assurance.

Accounting and Tax Ms Margaret Phiri CA (SA) Appointed to ARC: 01 April 2021 Qualifications Bachelor of Commerce Accounting, BCompt (Honours) Institution University of Venda, UNISA Area of expertise: Auditing, Accounting and staff development Mr Simon Mankgaba Appointed to ARC: 16 July 2020 Qualifications Postgraduate Diploma - Internal Auditing, B-Tech Internal Auditing Management Development Programme, Dip.
Criminal Justice and Forensic Investigation, ND Internal Auditing Institution UNISA, University of Pretoria , University of Johannesburg, Norther Gauteng Technikon Area of expertise: Internal Auditing, Financial Accounting, Cost and Management Accounting and Financial Management 19 MDDA ANNUAL REPORT 9.
LEGISLATIVE AND OTHER MANDATES MDDA STAFF: PROFILES MDDA STAFF: PROFILES Nomkhosi Peter Chief Financial Officer Mzuvukile Kashe Noxolo Bhangaza Acting Chief Executive Officer Executive Manager Projects Executive Assistant Winny Kubheka HR & Corporate Services Manager Kedibone Mokgalaka Chief Audit Executive Dawid Moreroa Head of Legal Lethabo Dibetso Research & Capacity Building Manager Siphokazi Mgudlwa Boikhutso Tsikene Yolanda Du Preez Project Manager Broadcast Project Manager Print Company Secretary Nompumelelo Maduna Monitoring & Evaluation Coordinator Mangaliso July Accountant Phathutshedzo Netshifhefhe Sfiso Maphanga Strategic Planning Administrator Broadcast Coordinator Mmathabo Thulo Print Coordinator Lennox Klaas Remofilwe Mandindi Mokgaetji Ledwaba Broadcast Technical Specialist Legal Officer Finance Projects Officer Sisanda Nompumza Human Resource Officer 20 MDDA ANNUAL REPORT MDDA STAFF: PROFILES MDDA STAFF: PROFILES MDDA STAFF: PROFILES Noxolo Bhangaza Executive Assistant Margaret Ndawonde Khanyisa Mahlawule Danielle Baloyi Communications Officer Research Coordinator Broadcast Coordinator Thebeetsile Letsapa Internal Auditor Lethabo Dibetso Research & Capacity Building Manager Gugulethu Bonnet Monitoring & Evaluation Coordinator Gugu Maseko Desiree Lebaea Tabani Nkomo Supply Chain Officer Research Coordinator Broadcast Coordinator Nompumelelo Maduna Monitoring & Evaluation Coordinator Terrance Mbangwa Sediroa Sithole Ouma Moatsi Michael Sive Assistant Company Secretary Project Administrator Administrative Assistant Junior Project Administrator Mmathabo Thulo Print Coordinator Bulali Dyakopu Yesani Maseko Nokuthula Sibanyoni Lerato Pule Digital Media Coordinator Receptionist Research & Training Intern Internal Audit Intern Sisanda Nompumza Human Resource Officer Puseletso Moabelo Broadcast Intern Anah Hlabizwe Finance Intern Qhamani Mnweba Katlego Makhutle Monitoring & Evaluation Intern Print Intern 21 MDDA ANNUAL REPORT MDDA STAFF: PROFILES Rudzani Tshigemane Senior Manager Communications & Strategy Neliseka Xhakaza ICT Intern Tsotetsi Motsamai Chimba Chibesa ICT Specialist Junior Project Administrator Fuzakazi Mqungwana Finance Officer Jimmy Ngwenya Print Coordinator 22 MDDA ANNUAL REPORT MDDA STAFF: PROFILES PART B: PART B: PERFORMANCE INFORMATION 23 MDDA ANNUAL REPORT 1.
AUDITOR’S REPORT: PREDETERMINED OBJECTIVES The AGSA/Auditor currently performs the necessary audit procedures Refer to page 91 - 93 of the Report of the Auditors Report, published as on the performance information to provide reasonable assurance Part G: Financial Information.

in the form of an audit conclusion.


The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.

1.

AUDITOR’S REPORT: PREDETERMINED OBJECTIVES 2.

OVERVIEW OF PERFORMANCE 2.1.


Service Delivery Environment The Media Development and Diversity Agency (“MDDA”) was established to information and content production of the community media by to facilitate ownership, control, and access to information and content historically disadvantaged communities.

production of the community media by historically disadvantaged communities.
Despite being in existence for more than 20 years, This year saw an unprecedented increase in loadshedding stages for Community and Small Commercial Media (“CSCM”) organisations have many South Africans; the CSCM sector is not immune to this.

This has struggled to position the CSCM sector as authorities on local content a profound impact on the MDDA’s Universal Service Obligations (USO) or as a platform to reach often-inaccessible audiences.

This means and Quality of Service (QoS).


Universal Service Obligations are defined that community media platforms have not yet been able to convince as principles that ensures everyone has access to communication advertisers of their value for advertising – which is the lifeline for the services, at affordable prices and as basic telecommunication services.

community media’s sustainability in the long term.


They are exclusively a prerogative of public authorities and service Both globally and locally, the media landscape has been undergoing operators and public authorities alone bears the costs of developments providers, as they are obligations which means that the network rapid, significant challenges.

With the fourth year of the worst global and infrastructure.
pandemic in a century and misinformation on the rise, the role of a professional, trusted CSCM sector became more important than ever.
Universal Service Obligations are fundamentally measured according Through the financial support from the commercial broadcasting sector, to the levels of development, by three critical tiers: the Board’s able guidance and the leadership team’s astuteness, the – Availability: network infrastructure must always be available CSCM has been able to navigate these difficult times.
everywhere and, without any geographic discrimination The following briefly outlines the context within which the MDDA had to without discrimination or exclusion to any social groups operate during the year under review: Whilst some of the CSCM sector especially disabled persons continued to demonstrate strong financial sustainability, supported – Affordability: network services must be available to the general by a diverse range of funding sources, including local businesses public, at affordable prices and packages – Accessibility: network services must be available to all users, and donor organisations, the sector continues to face financial challenges due to over-reliance on advertising revenue which leads to defaulting on SENTECH fees.
During the period under review the community broadcasting sector owed SENTECH close to a R100 million in outstanding signal distribution fees.

This has resulted in several community radio stations being switched off by SENTECH.

The rising debt by the community broadcasters posed a threat to both SENTECH and sector sustainability.

Furthermore, it risked compromising the MDDA’s mandate which is facilitating ownership, control, and access 24 MDDA ANNUAL REPORT 1.
AUDITOR’S REPORT: PREDETERMINED OBJECTIVES 2.

OVERVIEW OF PERFORMANCE 2.

OVERVIEW OF PERFORMANCE Quality of Service is defined as a set of policies to give specific qualities Broadcasting- provided by a network to users, by setting them up to achieve the • Community radio licensees are required by their license necessary functionality of an application or telecommunication service.

conditions to be on-air 24 hours, seven days a week.
Community Critical measures are taken to determine the overall performance of radio stations that remain off air for lengthy periods run a risk the services delivered by a telecom company to its users by prioritising of being penalised by ICASA because they might not have a copy their data traffic in the network to its users, regardless of other data of the programme that the regulator might be requesting at the traffic correspondence.
time they are not on air during loadshedding, which might lead to broadcast license non-renewal.

Quality of Service heavily relies on network bandwidth, signal • Day to day operations of the radio stations, such as programming transmissions, and data traffic.

Every factor in QoS is taken into scheduling are interrupted.

Advertising is a key revenue stream consideration as those factors contribute to the overall service delivery for community media.
Clients that have procured space for an from the company, as seen by its users, such as error rate, availability advert for a specific period have had to withdraw adverts because of network traffic, jitter, bit rate, and delays in transmissions also of lost airtime as a result of loadshedding, thus impacting known as latency.

Mobile and landline networks require constant and advertising revenue.
consistent amounts of power to run the network base stations and cell • The specialised equipment that the MDDA provides to approved towers situated within specific geographic areas.

beneficiaries is at risk of damage by continuous power cuts or surges when power returns.

This will also have a negative impact The impact of loadshedding on USO and QoS is addressed by the four on equipment warranty due to the constant switching on and off.
pillars: Print • Some stations have reported quality risks as a result of loadshedding.

The quality of the content produced by the • Print projects are affected primarily in terms of lost productivity stations is compromised because presenters and producers are because of loadshedding.

During loadshedding print runs could rushing to finish the programmes.
potentially be interrupted and disruptions to the sub-optimal functioning of the telecommunications networks during this time adversely affects communication flow especially at critical times such as during editorial process.

• The issue of loadshedding affects multiple factors in community media projects.
For example, if a project is a purely digital publication that relies on daily posts and consistent research to provide content, loadshedding becomes a thorn in the neck as it hinders the projects’ access to stable Wi-Fi or data as well as the flow of communication between the projects’ employees and the company’s stakeholders.

• Loadshedding can also create an overall decreasing quality of print publications, in terms of design, editing and colour scheme.
These factors can affect the reputations and distribution Research and Training- • Scheduling virtual meetings with most stations is a challenge due to loadshedding as stations struggle with connectivity.

Because of this there is still high usage of physical interactions which contributes to the operational costs of the MDDA due to travel and supporting beneficiaries to travel for training opportunities that could otherwise occur on virtual platforms.
The lack of commitment to 30% advertising spend from government continues to also impact the revenue of community media publishers and stifles media diversity.

In KwaZulu-Natal alone five (5) community publications have had to shut down since mid-2022 after a cut in half of the municipal budget for community print advertising as a result of schedules of print media projects, especially in rural areas where budgetary constraints.
these publications are heavily relied on as sources of crucial information about the weather, governance, and in some cases, loadshedding schedules.

The impact of loadshedding is also felt in the quality of consumption experienced by consumers.

• Consumers are less likely to engage with community media sources when experiencing loadshedding.
This can be in the form of listening to the radio, going online to their favourite During the period under review, the Board approved the final research report on Community and Small-Commercial Media Sustainability Model.
The research identifies the underlying factors that influence the sustainability of the CSCM sector; identifying trends in ownership of CSCM organisations; and studying international sustainability models adopted in other countries for the CSCM sector, that South Africa can digital publications to leave online comments, or engaging with learn from.

print publications via calls, WhatsApp, or emails promptly.
Quite often, rural-based projects do not have access to generators and even if that is the case, loadshedding not only disrupts power supply but also signal transmissions and network availability as well.

Therefore, both QoS and USOs are equally affected.

25 MDDA ANNUAL REPORT The Agency takes its position as an authoritative leader and voice on Programme 1 - had six (6) annual targets which were contributing media development and diversity quite seriously.
During the period to one outcome which referred to a capable, effective and efficient under review the Agency received negative publicity which risks its organisation in support of the delivery of the MDDA mandate.

Three (3) credibility and reputation.

Through the guidance of the Board, the annual targets were achieved and three (3) were not achieved.
MDDA Executive, Management and staff are committed to improving the organisational culture, building internal brand ambassadors Programme 2 - Sub-Programme 2.1 had two (2) outcomes.

The first through employees and ensuring proactive communication efforts.

outcome had annual targets which were contributing to one (1) 2.2.
Organisational environment growth of sustainable community-based and small commercial media The enabling legislative environment and the positioning of the MDDA nationally’ and both targets were achieved.

The second outcome had in the Presidency entrenches the relevance of its value proposition.

The an annual target which was contributing to one outcome which is core of the MDDA is Programme 2: Grant and Seed Funding.
being a ‘digital responsive community-based media sector by 2024’, outcome which referred to ‘media diversity promoted through the In light of the changing media landscape, including the migration to digital, the structure is being reviewed to provide internal capacity Programme 2 - Sub-Programme 2.2 had two (2) annual targets which that strengthens its ability to deliver on its mandate and the evolving were contributing to one (1) outcome which referred to a ‘capable, requirements of the media landscape.
Such changes will potentially effective and efficient organisation in support of the delivery of the elevate the accountability of various programmes as well as include MDDA mandate’ and one (1) target was achieved and the other one (1) and this target was also achieved.

expertise to guide and direct the MDDA’s strategic and policy making was not achieved.

role.
role.

There was a total permanent staff complement of thirty seven (37) to one (1) outcome which referred to ‘capable, effective and efficient employees at the end of the period under review, out of fourty four (44) organisation in support of the delivery of the MDDA mandate’ and all Programme 3 - had three (3) annual targets which were contributing approved positions.

This equates to a vacancy rate of 16%.

There were three (3) targets were achieved.


five (5) terminations of permanent employees, one (1) was a dismissal while the other four (4) were resignations.

The Agency appointed two Programme 4 - had three (3) annual targets which were contributing (2) female managers during the FY 2022/23.
The Agency appointed nine to one (1) outcome which referred to ‘increase in HDI communities (9) interns, and four (4) employees on short term contracts during the accessing media opportunities and information through community year under review.

and small commercial media’ and two (2) of the three (3) targets were achieved, one (1) was not achieved.

2.3.

Key policy developments and legislative changes There are no changes regarding key policy developments and no Programme 5 - had two (2) outcomes.
The first outcome had an legislative changes.

annual target which was contributing to one (1) outcome which referred to ‘capable, effective and efficient organisation in support of 2.4 Progress towards achievement of institutional Impacts the delivery of the MDDA mandate’ and its target was achieved.
The and Outcomes second outcome had an annual target which was contributing to one The entity had three (3) outcomes and functions through five (5) (1) outcome which is ‘media diversity promoted through the growth of programmes: Governance and Administration; Grant and Seed Funding; sustainable community-based and small commercial media nationally’ Partnerships, Public Awareness and Advocacy; Capacity Building and and this target was also achieved.
Sector Development; and Innovation, Research, and Development.

The Agency had set itself nineteen (19) annual targets for the 2022/23 financial year.

Fifteen (15) of the annual targets were achieved and only four (4) were not achieved.

The fifteen (15) targets achieved constitute 79% of the agency’s annual achievement.

26 MDDA ANNUAL REPORT 2.

OVERVIEW OF PERFORMANCE 2.


OVERVIEW OF PERFORMANCE MDDA Programme Performance Information 2022-2023 Financial Year The following pages presents the Performance Information Report as Section 20 (2) (c) of the Public Audits Act No 25 of 2004 on the reported is required in terms of Treasury Regulations and Section 55 (2) (a) of information relating to performance against predetermined objectives.

the PFMA.

The objectives are measurable and aligned to the budget.
The MDDA is reporting against the Annual Performance Plan of This assists the Accounting Authority (the Board) in its additional 2022/2023 as tabled in Parliament on the 29th March 2022.

The Annual responsibility to ensure that the annual report and audited financial Performance Plan was developed to give effect to the MDDA Five-Year statements fairly present the performance against predetermined Strategic Plan for 2020/2021 - 2024/2025, which was tabled on the 18th objectives of the Agency.

March 2020.
March 2020.

Both the Strategic Plan and Annual Performance Plan have been developed in terms of the Revised Framework for Strategic Plans Accordingly, this Performance Information Report is a subject matter/ and Annual Performance Plans as per National Treasury Instruction No agenda item of every Board and Executive Management meeting in 5 of 2019/2020.

line with the regulatory requirements, good corporate governance, and proper oversight.
This ensures that the Agency complies with The 2022/2023 MDDA Annual Performance Plan has five (5) programmes, the requirements of the Auditor General’s audit findings in terms of with includes a total of ninenteen (19) output indicators.

MDDA Programme Structure The MDDA programme structure comprises five (5) programmes, as shown below.

Programme 2: Grant and Seed Funding is the core activity in the delivery of the MDDA mandate.
OUTCOME An accessible, developmental, diversified and sustainable media Programme 1 - Governance and Administration Programme 2 - Grant and Seed Funding Programme 3 - Partnerships, Public Awareness and Advocacy Programme 4 - Capacity Building and Sector Development Programme 5 - Innovation, Reseach and Development 27 MDDA ANNUAL REPORT 2.

OVERVIEW OF PERFORMANCE The MDDA is reporting against the 2022/2023 Annual Performance Plan.

Annual targets for 2022/23 are nineteen (19).


Fourteen (14) of these were achieved, which means that the Agency achieved 74% of its annual targets.

Four (4) of these five (5) targets were not achieved.

The output indicator that was not achieved fell under.

Programme 1: Governance and Administration - Output indicator No 3: Percentage of invoices processed for payment within 30 days.

One invoice was not paid within 30 days.


Programme 1: Governance and Administration - Output indicator No 4: Percentage of fruitless and wasteful expenditure incurred.

Programme 2: Output indicator No 10: Number of annual evaluation reports generated on funded projects.

The target was not met as the report was not initiated on time.

Programme 4: Output indicator No 17: Number of reading initiatives held.

One (1) reading initiative was not held.
Annual Overall Performance 4(21%) 15(79%) Targets Achieved Targets not Achieved Annual Performance by Programme 6 5 4 4 3 3 3 2 2 2 2 1 1 0 0 Number of Targets Achieved Not Achieved 6 5 4 3 2 1 0 28 MDDA ANNUAL REPORT PROGRAMME 1: GOVERNANCE AND ADMINISTRATION PROGRAMME 1: GOVERNANCE AND ADMINISTRATION Purpose: The programme ensures effective leadership, strategic management, and operations, through continuous refinement of organisational strategy and the implementation of the appropriate legislation and best practice.
Outcome Output Output Indicator Audited Actual Performance Planned Annual Actual Achievement Deviation from Reasons for Target 2022/23 2022/23 planned target to deviations 2020/21 2021/22 Capable, Unqualified 1.

Unqualified audit with Unqualified audit Unqualified audit Unqualified audit Unqualified audit effective and audit with no no significant findings opinion opinion opinion opinion for 2021-22 efficient significant organisation in findings 2.
Percentage of fraud - Fraud prevention and 100% 100% financial year Actual Achievement 2022/23 - - Target achieved.

Target achieved.

support of the delivery of the MDDA mandate detected or prevented through effective risk management mechanisms risk management strategies implemented Financial 3.

Percentage of invoices - 100% 100% 99% -1% Performance processed for payment Efficiency within 30 days 4.

Percentage of fruitless - 0% 0% 55.8% and wasteful expenditure incurred 5.
Percentage of irregular expenditure incurred Human Resources 6.

Percentage of Human Strategy Resources Strategy implementation targets achieved - - 0% 0% Human Resources 60% Strategy submitted to Board for approval 0% 60% - - - Target not achieved.

One invoice was not paid within 30 days.

Target not achieved.

An amount of R29 285 was categorised as fruitless and wasteful expenditure.

Target achieved.

Target achieved.


29 MDDA ANNUAL REPORT PROGRAMME 2: GRANT AND SEED FUNDING PROGRAMME 2: GRANT AND SEED FUNDING Purpose: The programme promotes media development and diversity through financial and non-financial support for community broadcasting as well as community and small commercial print projects.

The programme consists of two strategic objectives, encapsulated in two sub-programmes.
Sub-Programme 2.1: Community and Small Commercial Media Purpose: The purpose of this sub-programme is to facilitate ownership, control and access to information and content production of community and small commercial media by historically disadvantaged communities.

Outcome Output Output Indicator Audited Actual Performance Planned Annual Actual Deviation from Reasons for deviations 2020/21 2021/22 2022/23 Actual Achievement Target 2022/23 Achievement planned target to Media diversity Community 7.
Number of grant funding 20 24 20 promoted through broadcast project applications for community the growth of funding broadcast projects approved sustainable community based and small commercial media nationally Community and 8.

Number of grant funding 8 10 6 small commercial applications for small media digital/print commercial print or digital project funding media projects approved Digital responsive Community media 9.
Number of media projects Community media digital 21 16 community-based digital strategy provided with digital support strategy and 3-year plan media sector by 2024 implemented submitted to Board for approval 23 10 17 2022/23 3 4 1 Target achieved.

More funding was received from broadcasters who pay their USAF Levy to the MDDA.

Target achieved.

More funding was received from broadcasters who pay their USAF Levy to the MDDA.

Target achieved.

High demand for digital support from beneficiaries.
30 MDDA ANNUAL REPORT Sub-Programme 2.2: Monitoring and Evaluation Sub-Programme 2.2: Monitoring and Evaluation Purpose: The purpose of this sub-programme is to monitor and evaluate input, output, and compliance to MDDA grant-in-aid contracts to measure the effectiveness and efficiency of MDDA support.
Outcome Output Output Indicator Audited Actual Performance Planned Actual Deviation from Reasons for deviations 2020/21 2021/22 Annual Target 2022/23 Achievement planned target to 2022/23 Actual Achievement 2022/23 Capable, effective Annual evaluation of 10.

Number of Final annual 1 1 0 and efficient M&E reports annual evaluation evaluation report organisation in support of the delivery of the MDDA mandate reports generated on submitted to Board funded projects for approval Monitoring reports 11.
Number of 80 66 65 75 on input, output, monitoring reports and compliance to generated on funded MDDA granting-aid projects contracts -1 10 The target was not met as the report was not initiated on time.

Target achieved.

More projects were monitored as the M&E team conducted evaluations in geographical locations where there were other active projects.
31 MDDA ANNUAL REPORT PROGRAMME 3: PARTNERSHIPS, PUBLIC AWARENESS AND ADVOCACY Sub-Programme 2.2: Monitoring and Evaluation Purpose: This programme seeks to position the MDDA as a leading influencer and authoritative voice in the community and small commercial media, by playing a key role in the national dialogue on the sector, through implementation of strategic partnerships to carry out media development and diversity interventions.
Outcome Output Output Indicator Audited Actual Planned Actual Deviation from planned Reasons for deviations Performance 2020/21 2021/22 Achievement target to Actual 2022/23 Achievement 2022/23 Annual Target 2022/23 4 12 21 31 10 40 6 6 7 17 19 1 Target achieved.

More studios were unveiled during the period of review.

Target achieved.

More interviews were conducted during World Radio Day.

Target achieved.

The Agency hosted a Funders Breakfast session with all broadcast funders.
Capable, effective Stakeholder engagements for 12.

Number of stakeholder support of the community and engagements held and efficient small commercial media organisation in support of the delivery of the MDDA mandate Media engagements to position 13.

Number of media the brand MDDA engagements held Fundraising initiatives for 14.
Number of proposals for support of community and funding and support small commercial media presented to potential and existing stakeholders - - - 32 MDDA ANNUAL REPORT PROGRAMME 4: CAPACITY BUILDING AND SECTOR DEVELOPMENT PROGRAMME 4: CAPACITY BUILDING AND SECTOR DEVELOPMENT Purpose: One of the objectives of the Agency outlined in the MDDA Act of 2002 is to “encourage the development of human resources, training and capacity building within the media industry, especially amongst historically disadvantaged groups”.
In response to this, the Agency has developed capacity building programmes, which aim to provide community and small commercial media with necessary skills needed for effective performance in the day-to-day work.

Outcome Output Output Indicator Audited Actual Planned Actual Deviation from Reasons for deviations Performance 2020/21 2021/22 Annual Target 2022/23 Achievement planned target to 2022/23 Actual Achievement 2022/23 Increase in HDI Training interventions 15.
Number of 6 12 6 10 communities aimed at capacitating training accessing media the community media interventions opportunities and with skills aligned to aimed at information sector specific needs capacitating the through community and small commercial media community media Media literacy 16.

Number of 3 workshops media literacy workshops conducted Culture of reading 17.

Number of reading - initiatives initiatives held 3 1 2 2 3 1 4 1 1 Target achieved.
The positive variance is as a result of the partnership with NEMISA and rollovers being allocated to the R&T Unit.

Target achieved.

Target not achieved.

One reading initiative was held.

33 MDDA ANNUAL REPORT PROGRAMME 5: INNOVATION, RESEARCH AND DEVELOPMENT PROGRAMME 5: INNOVATION, RESEARCH AND DEVELOPMENT Purpose: The MDDA Act 14 of 2002 on Section 3 (VI) outlines the objectives of the Agency to include (amongst others) to “encourage research regarding media development and diversity”.
There is also a lack of research and information specific to the sectors that inform programme development and strategic focus (e.g, not much information on the number of indigenous language newspapers in SA, number of readers of such newspapers, etc.).

The purpose of this programme is therefore to champion research, development, and innovation to create a media development and diversity body of knowledge.
Outcome Output Output Indicator Audited Actual Performance Planned Annual Actual Achievement Deviation from Reasons for Target 2022/23 2022/23 planned target to deviations Capable, Research projects on 18.

Number of 3 2 2 2 2020/21 2021/22 Actual Achievement 2022/23 - Target achieved.
effective and key trends/ research projects efficient developments funded on key organisation in impacting the trends/developments support of the community media impacting on the delivery of the sector community media MDDA mandate sector Media diversity Community Media 19.

Community Media Study into the 0 Community Media Community Media - Target achieved.
Sustainability Model Sustainability Model development of Sustainability Model Sustainability Model developed Community Media preliminary findings preliminary findings Sustainability Model commissioned submitted to the submitted to the Board for approval Board for approval promoted through the growth of sustainable community based and small commercial media nationally 34 MDDA ANNUAL REPORT Linking performance with budgets Linking performance with budgets Programme/activity/objective Budget Actual (Over)/Under Budget Actual Expenditure Expenditure Expenditure (Over)/Under Expenditure 2022/2023 2021/2022 Governance and Administration Grant and Seed Funding Partnerships, public awareness and advocacy Capacity building and sector development Innovation, Research and Development (10 733 995) 97 722 490 00 79 283 533 00 ( 18 483 957) 1 386 974 2 512 415 3 329 970 (37 068) 302 585 0 00 2 500 000 00 (1 226 682) 4 386 318 00 2 215 445 00 3 155 178 00 1 176 175 2 215 455 00 655 178 3 210 143 Total 139 577 390 151 847 183 (12 269 793) 138 788 307 118 848 734 (19 939 573) Programme 2 (Grant and seed funding) The overspending by R10,7 million mainly due to unspent funds from prior year projects (Grantee orientation and contracting) that were carried forward to the 2022/2023 financial year.
Programme 4 (Capacity building and sector development) The underspending is due to the research projects that were only procured towards the end of the quarter.

The remaining budget has been committed to be utilised in the 2023-24 financial year.

Programme 5 (Innovation, Research and Development) The underspending of R1,2 million in this programme is due to prior year commitments due to projects that were budgeted for in 2021/2023 but were only implemented in the 2022/2023 financial year.
35 MDDA ANNUAL REPORT Linking performance with budgets Linking performance with budgets REVENUE COLLECTION Sources of revenue Estimate Actual (Over)/Under Estimate Actual (Over)/Under Collection Amount Collected Collection Amount Collected 2022/2023 2021/2022 Government grants & subsidies 62 917 508 58 597 597 4 319 911 60 187 627 35 472 703 24 714 924 Broadcast funders contributions Interest received - investments 62 643 019 4 020 116 64 988 360 5 060 060 (2 345 341) (1 039 944) 64 948 917 3 601 039 64 641 480 3 398 102 307 437 202 991 Total 129 580 643 128 646 017 934 626 128 737 583 103 512 285 25 224 898 Agency budget in terms of clearly defined programmes.
The following table summarises the final revenue collection.

It provides an indication of the revenue by the Agency.

The under collection based on the budget includes revenue from the Economic Development Fund which is recognised only when it is earned.
CAPITAL INVESTMENT Capex New replacement assets Total Budget 300 492 300 492 2022/2023 Actual (Over)/Under Expenditure Expenditure - - 300 492 300 492 Budget 370 000 370 000 2021/2022 Actual (Over)/Under Expenditure Expenditure 660 746 660 746 (290 746) (290 746) The following table summarises the final capital expenditure.

It provides an indication of the amount spent on the capital assets within the Agency.
The actual procurement of new laptops took place before year- end; however, the actual expenditure (actual payments to the Service Provider) will only take place in the new financial year 2023/24 and reported in the relevant financial year.
36 MDDA ANNUAL REPORT PROJECTS FUNDED 2022/23 FINANCIAL YEAR PROJECTS FUNDED 2022/23 FINANCIAL YEAR PROJECTS FUNDED 2022/23 FINANCIAL YEAR The MDDA’s mandate is to support community and small commercial media projects as well as projects targeting historically disadvantaged communities.

The support was weighted heavily towards media projects in rural areas.
Print Projects No Project Name Nativity Group UniQ Magazine SA / Stoneface Farmers for Change (PTY) Ltd Zikode Bulletin Ngoho Print and Digital News Lema Printing House Bethlehem News Spot Roma Nna Province KwaZulu Natal KwaZulu Natal Western Cape Mpumalanga Limpopo Free State Free State Northern Cape One Day Foundation/ Indaba Community News Eastern Cape 10 Inside Education Gauteng Broadcasting Projects No Project Name Bushbuckridge (BBR FM) Izwi Lethemba Kanyamazane Moutse Rise FM Cape TV Fine Music EK FM Pheli FM VUT Westside FM Radio Veritas Ekhephini Engcobo Kingfisher Oasis The Voice of Matat Maruleng Mohodi Moletsi Waterberg Wave Med FM Nongoma Province Mpumalanga Mpumalanga Mpumalanga Mpumalanga Mpumalanga Western Cape Western Cape Gauteng Gauteng Gauteng Gauteng Gauteng Eastern Cape Eastern Cape Eastern Cape Eastern Cape Eastern Cape Limpopo Limpopo Limpopo Limpopo Free State KwaZulu Natal Approved Funding Amount 690 000.00 528 000.00 660 000.00 462 300.00 711 400.00 553 000.00 432 000.00 609 000.00 751 800.00 400 000.00 Approved Funding Amount The above projects were approved during the third quarter of 2022-2023 financial year, and disbursement will take place in the first quarter of the 2023-2024 financial year 37 MDDA ANNUAL REPORT Print and Digital Media Approved Projects KwaZulu Natal Ulwazi magazine (Nativity Group) Print and Digital Media Approved Projects Ulwazi magazine is a monthly student magazine targeting high school teenagers in the township.
The main focus will be to produce content that both informs and inspires high school youth in the township.

The concept behind the magazine is to portray positive stories in education and showcase township schools in a good light and break the stereotypes associated with township youth and education.

Ulwazi magazine is targeted at teenagers and will use many interactive methods to communicate with its audience.
What makes Ulwazi magazine unique is that it specifically addresses topics that are specific to high school learners and news relevant to them.

The magazine will be available in a print version and will also have a website where additional information can be found.

The website will also allow content to be easily accessible to young people beyond the targeted demographic.
Approved Funding Amount: R690 000.00 (Operational costs: R635 000.00; Capital expenditure: R55 000.00) UniQ Magazine (Stone Cold Communications) (Pty) Ltd UniQ magazine is an online magazine run under Stoneface Communications (Pty) Ltd.

The initiative was started by four (4) women who have a lot of experience in the media industry.

The magazine was launched in March 2014 and was aimed at the LGBTQI+community in KZN.
Its mission is to “empower lesbian, queer women, trans women, and non-binary people to share culture and stories, connect with each other, and raise visibility while educating everyone on homosexuality.

It also supports LGBTQI+ community organisations and allows them to use the platform to promote their activities.
Approved Funding Amount R528 000.00 (Operational costs: R459 000.00; Capital expenditure: R69 000.00) Western Cape Food For Mzansi’s indigenous languages project (Farmers for Change (Pty) Ltd trading as Food for Mzansi) Food For Mzansi is published by Farmers for Change (Pty) Ltd; a Level 2 B-BBEE company, as a majority black-owned, exempted small business.

Farmers For Change employs twelve (12) full-time employees and regularly uses the services of a cohort of freelancers throughout South Africa.
We also regularly feature the work of graduates of our 2020 Sinelizwi Citizen Journalism programme, which saw sixty-two (62) ordinary people undergo basic journalism training through an innovative, WhatsApp-based programme.

Of these students, including farm workers, farmers, unemployed youth, and even retired nurses and policemen, twenty (20) actively contribute to our website, podcasts, and newsletters, and are paid for their work.
Farmers For Change launched Food for Mzansi in 2018 which has become a widely celebrated digital news publication.

Approved Funding Amount: R660 000.00 (Operational costs: R660 000.00) Mpumalanga Zikode Bulletin (Zikode Multi Enterprise) Zikode Bulletin is an online publication which was registered by sole founder in 2020.

The project is publishing in Ermelo -Mpumalanga province, Gert Sibanda District Municipality.
It has set up its online operation without external funding and is currently sharing office space with MDDA former beneficiary: VOC FM (Voice of Community Radio).

Approved Funding Amount: R462 300.00 (Operational costs: R414 000.00; Capital expenditure R48 300.00) Limpopo Ngoho Print and Digital News Ngoho Print and Digital News was established in 2019 by two (2) entrepreneurs from Thohoyandou, Vhembe District, in the Limpopo province.
The idea came after they identified a huge gap in the media landscape as there wasn’t any Tshivenda language publication in the Vhembe District Municipality as well as the whole of South Africa.

Ngoho News is based in Thohoyandou, and covers the whole of the Vhembe District Municipality which consists of the following local municipalities, Thulamela, Makhado, Musina and Mutale.

It is a 100 % Tshivenda language tabloid size small commercial newspaper published fortnightly.
Ngoho News primarily targets the African (black) community who are able to read the Tshivenda language without eliminating other potential target markets.

The project mainly focuses on developmental, cultural, health, education, 38 MDDA ANNUAL REPORT Print and Digital Media Approved Projects Print and Digital Media Approved Projects Print and Digital Media Approved Projects crime, economic, sports and entertainment issues.
The prominent challenges facing the Vhembe District Municipality are service delivery backlog, gender-based violence, femicide, child abuse, domestic violence, unemployment, high illiteracy, unskilled labour, crime, abuse of illegal substances and alcohol.
Approved Funding Amount: R711 400.00 (Operational costs: R671 400.00; Capital expenditure R40 000.00) Free State Puisano News (Lema Printing and Media House) Puisano News is a bilingual newspaper (Sesotho 60% and English 40%) which was started in 2006 as People’s Agenda Newspaper before changing its name to Puisano News in 2008.

The publication is based in Sasolburg in the Free State province.
The paper was started by two (2) individual members of society who came up with the idea of producing a newspaper after identifying a gap in the market for such a publication.

The publication seeks to provide content that will include business information, economic opportunities for ordinary women, bursary information, career guidance, business advice, motivation, job listing, current affairs happening in and around communities and the country.
Issues that affect the youth such as HIV / AIDS, rape, abuse, unemployment, will be covered by the publication as well as uplifting stories about the community of Sasolburg and surrounding areas.

The newspaper’s core focus is to develop and revive a culture of reading and learning using indigenous languages.
Puisano news content aims to be more on developmental stories and empowering its readers with information and knowledge on issues such as awareness on health, politics, access to information and services, consumer rights etc.
The project reports and investigates stories that probe challenges faced by residents such as crime, service delivery issues, matters relating to education such as the current debate on the safety of children in schools and at home during this devastating era of the pandemic that is globally called COVID-19.
With the Fourth Industrial Revolution approaching, the media product is also now available online www.puisano-ditaba.co.za and on social media platforms with a Facebook page.Puisano News currently prints and distributes 5 000 to 10 000 copies once a month in the Fezile Dabi District Municipality.

The publication is distributed in different public areas that include schools, shops, clinics, hospitals, taxi ranks, government department offices and malls.
Approved Funding Amount: R553 000.00 (Operational costs: R525 000.00; Capital expenditure: R28 000.00) Bethlehem News Spot Bethlehem News Spot is a community digital media platform based in the township of Bohlokong in Bethlehem in the Free State.

The project was set up to expand the community’s worldview, provide fresh local news, important information, and education content, and to give a voice to the community.
Bethlehem News Spot was started in 2016 by Lucky Maseko as a simple Facebook page that updated people about what is happening locally after he saw a gap caused by a lack of information in his community.

The company was officially registered in 2020 and is now a recognized media platform in the community.

The media house is still growing and is expected to grow even bigger once it receives proper funding.
Bethlehem News Spot has built a solid relationship with the community and has proven to be a reliable source of information.

The digital publication strives to report on issues that affects the community and thus enforce proper service delivery which has always been one of the top priorities of the online platform.

The community of Bohlokong and surrounding areas relies on the publication to report and fast-track service delivery issues in the area.
The project gives the community a chance to make any progressive suggestions with their special live streams which are used to get feedback from the public and note challenges that are faced by the community.

The project gets involved in different community projects such as food and clothes drive campaigns, and with campaigns that speak up against gender-based violence.

The online media platform also promotes coverage of news and events that educates the youth.
39 MDDA ANNUAL REPORT Print and Digital Media Approved Projects Bethlehem News Spot uses English as the main language to cover stories and events.

Sesotho and Afrikaans are also part of the languages that are used to accommodate all members of the community in a language they understand.

The project has made it easy for all cultures to interact with one another on their online platform without any fear of rejection or discrimination.
Approved Funding Amount: R432 000.00 (Operational costs: R298 000.00; Capital expenditure: R134 000.00) Northern Cape Roma Nna Media House Roma Nna is a community publication based in Kimberley in the Northern Cape.

The publication is produced in English,!Xhu,Khwe, Setswana, and isiXhosa and it is available in print and online (www.romanna.net ).

With the help of the MDDA grant funding, the first edition was published in July 2020.

The publication is a full colour, eight-page, multi-lingual newspaper.
Five thousand copies are distributed monthly within the Sol Plaatje Local Municipality, however due to the growing interest from communities and lack of print publications within the Francis Baard District Municipality, there is an intention to increase the amount to 20 000 copies.

Francis Baard has a population of 438,904, or 32.4% of the total population in the Northern Cape province.

Printing and distributing 20 000 copies will not cover even 10% of the readers.
The project has designed a website to increase its reach.

Roma Nna is a unique and reliable newspaper with a township flair.

The content covers a wide variety of subjects including religious news, current affairs, events, tributes, lifestyle, and anything educational, informative, and of interest to the community.

In order for Roma Nna to grow into a viable business, it is imperative to print weekly.
The media house has created employment and also given much-needed experience to students through their internship programme.

The emergence of Roma Nna strengthened the relationship with the indigenous!Xhu, Khwe community from Platfontein by translating some articles into their language.

This also empowered at least two (2) people, to write stories from their community.

Thus far, Roma Nna is the 3rd publication circulating within the district and the city centre.
The two (2) other publications, Diamond Field Advertisers (DFA) and Noord Kaap Bulletin are distributed to affluent readers.

Approved Funding Amount: R609 000.00 (Operational costs: R609 000.00) Eastern Cape Indaba Community News (One-day Foundation) Indaba Community Newspaper was established in 2021 under a nonprofit organisation called Oneday Foundation.

The organisation is based in Graaf – Reinet which is under Dr Beyers Naude Municipality in the Eastern Cape province.
Indaba Community News will be implemented and distributed in the Dr. Beyers Naude Municipality.

This publication will be the first community newspaper within the area as there is currently no other free print media platform.

Thirteen years ago, the community had a community radio station which was the only source of communication informing and distributing information within the community.
Since the closure of the local community radio station, there has not been a platform where the community can engage, be educated and informed.
Approved Funding Amount: R751 800.00 (Operational costs: R703 800.00; Capital expenditure R48 000.00) Inside Education Inside Education (Pty) Ltd. (hereafter known as IE) is a well-established online platform in the Education Industry that is growing into a print edition to reach readers who may not have access to internet resources, particularly in rural and peri-urban regions.
Inside Education (IE), is one of Africa’s largest news sites dedicated to bringing education- related material across the continent and covers a broad spectrum of the process from Early Childhood Development to Lifelong Learning - Private, Public, Academia, and Civil Society.

The content provided by IE is designed to empower teachers, students, and learners.

It is used as a tool for encouraging good leadership, ethics, and governance in the education sector.
It has built a reputation as a digital platform that reaches 3.1 million readers.

Its additional expansion includes a quarterly print solution that will be distributed in the country’s peripheral locations.
Approved Funding Amount: R400 000.00 (Operational costs: R329 400.00; Capital expenditure R40 000.00 Administration costs R30 600.00 40 MDDA ANNUAL REPORT Print and Digital Media Approved Projects Community Broadcast Approved Projects Community Broadcast Approved Projects Mpumalanga Bushbuckridge Community Radio Bushbuckridge CR is a community radio station based in Bushbuckridge at Ehlanzeni District Municipality.

The station went on air on 16 December 1996.


Bushbuckridge CR’s coverage area is Bushbuckridge and surrounding areas which includes Graskop, Sable, Hazyview, Kruger Park & Hoedspruit.

Bushbuckridge Community Radio’s geographic licence area is Bushbuckridge and surrounding areas in Mpumalanga.

The station’s broadcast format is 60% talk & 40% music.

Bushbuckridge Community Radio broadcast languages are Sepulana, Siswati & Xitsonga.
Local news and information are 25 minutes of local news and 15 minutes of national news per day.

South African music content is 80%.

Bushbuckridge Community Radio frequency is 88.4 FM.

It is broadcast 24 hours a day.

The primary aims and objectives of the project are: • Provide unbiased & accurate reporting on news events.

• Provide reliable & accurate information regarding local health, safety, education & entertainment.

• Instil a spirit of self-help & empowerment.


Approved Funding Amount: R1 275 000.00 (transmission fees for self transmission: R300 000.00; Capital Expenditure for one studio: R975 000.00) Izwi Lethemba – Voice of Hope Izwi Lethemba / Voice of Hope is a Christian community radio station based in Nelspruit Mbombela, in the Ehlanzeni District Municipality.
The station was established in February 2002 and covers the areas of Nelspruit, White River, Sabie, Waterval Boven, Moshodorp, Belfast, Barberton and other surrounding areas.

Izwi Lethemba / Voice of Hope Geographic Licence area is Ehlanzeni District Municipality.

The station’s broadcast format is 60% talk & 40% music.

Izwi Lethemba / Voice of Hope broadcast languages are IsiSwati 50% & IsiZulu 50%.
Local news and information are 30 minutes of local news per day, 25% of which is national news & 5% of international news per day.

South African music content is 80%.

Izwi Lethemba / Voice of Hope frequency is 90.5 FM.

It broadcasts 24 hours a day.
The primary aims and objectives of the project are: • Empower, motivate, encourage & counsel the disadvantaged communities to take control of their own destinies through entrepreneurial radio programmes • Provide training & in-service training to young people of the community through journalism, radio presenting & other media fields • Work with all members of the community in the fight against poverty, children & woman abuse, child pregnancy, HIV & AIDS, and abuse of alcohol through educational programmes Approved Funding Amount: R917 000.00 (Content Production: R80 000.00; Administration:R77 000.00; Transmission fees (Sentech): R360 000.00; Capital expenditure for refurbishment: R400 000.00) Kanyamazane Community Radio Kanyamazane CR is a community radio station based in Kanyamazane, Nelspruit in the Ehlanzeni District Municipality.
The station was formed in 1998 and went on air in 2010 and aims to provide services to the geographic community, to inform, educate and entertain the surrounding community of the Ehlanzeni District, specifically the Kanyamazane area as per their geographic ICASA licence.

Kanyamazane CR geographic licence area is Kanyamazane and Mbombela District.

The station’s broadcast format is 50% talk & 50% music.

Kanyamazane CR broadcast languages are SiSwati 65%, 15% IsiZulu, 15% English, and township lingo.
Local news and information are 84 minutes of news per day on weekdays and 65 minutes on weekends.

Furthermore, 22% shall be local, 28% regional, 30% national, and 20% international news.

South African music content is 80%.

Kanyamazane CR frequency is 107.3 fm.

It broadcasts 24 hours a day.

The primary aims and objectives of the project are: • Disseminate information through the production & presentation of radio programs • Provide services to the geographic community.
• Inform, educate & entertain the surrounding community.

Approved Funding Amount: R2 366 000.00 (Content Production for website maintenance: R20 000.00; Capital expenditure for studios, inverter, OBE, desktop & laptop: R2 269 000.00; Administration costs: R77 000.00) 41 MDDA ANNUAL REPORT Community Broadcast Approved Projects Moutse Community Radio Moutse community radio was initiated in 1993.

Their first broadcast licence was issued on the 8th of November 1997.
The drive and aspiration behind the formation of this station came from the rural women.

In a management team of six (6) members, is has two (2) women in management.

Its main objective was to drive basic affordable health, education, and social welfare and uplift the social status of women.

The mission is to deliver developmental information in a sustainable manner to the people of Moutse and surrounding communities.
The station develops the skills of local people in the telecommunication industry and gives a voice to the voiceless people in the area.

Moutse community radio geographic licence area is Moutse.

The station’s broadcast format is 60% talk & 40% music.

Moutse community radio broadcast languages are 40% IsiPedi, 25% IsiZulu, 20% IsiNdebele, 10% Setswana 5% English.

Local news and information are 25 minutes, 10 minutes of national news, and 5 minutes of international news.
South African music content is 75%.

Moutse community radio frequency is 76.3 MGH.

It is broadcast 24 hours a day.


The primary aims and objectives of the project are: • Propagate relevant information • Educating and entertaining the community • Promoting diversity amongst the listeners • Promoting strong leadership Approved Funding Amount: R2 119 000.00 (Administration costs: R77 000.00; Capital expenditure for studios, desktop, laptops and furniture: R2 042 000.00) Rise FM Rise FM is a community radio station based in Acornhoek in the Ehlanzeni District Municipality.
The station went on air on 05 August 2016.

The station covers the area of Bushbuckridge and surroundings, including Acornhoek, Sable, Hazyview, Kruger Park and Hoedspruit.

The station aims to promote local music, culture, arts and content that benefits the community it serves and plays a major role in being the communication tool within and beyond the Bushbuckridge municipality.

It also intervenes in challenges facing the community within its broadcasting areas.
Rise fm’s geographic licence area is Bushbuckridge and surrounding areas in Mpumalanga.

The station’s broadcast format is 50% talk & 50% music.

Rise fm’s broadcast languages are SiSwati, xiTsonga, Sepulane & English.

Local news and information are 50% local news, 30% national news & 20% international news.

South African music content is 80%.

Rise FM frequency is 103.2 FM.

It broadcast for 24 hours.
The primary aims and objectives of the project are: - Promote local music, culture, arts & content - Being the communication tool within & beyond Bushbuckridge municipality - Intervene on challenges facing the community within its broadcasting areas - Being a stepping stone to equip young people from university on how to run & manage community radio stations - Work with various stakeholders to provide information to its target age group Approved Funding Amount: R665 000.00 (Administration costs: R62 000.00; Capital expenditure for studio enhancement R603 000.00) Western Cape Cape Town Community Television Collective Cape Town TV (CTV) is a non-profit organisation, free-to-air community television station licensed to serve the greater Cape Town Metropolitan.
The station is committed to providing community access to the powerful medium of television as a tool for development and social change.

CTV promotes community participation by encouraging youth, NGOs, and independent producers to be content producers through the bottom-up approach.
The majority of the news at the station is produced by local producers through innovative commissioning practices that 42 MDDA ANNUAL REPORT Community Broadcast Approved Projects Community Broadcast Approved Projects invites producers to submit content proposals.

Once selected, producers are offered access to equipment, training, and sales support and income is shared on a revenue share basis.
CTV produces several flagship projects in-house and acquires the right free premium, international content such as Al-Jazeera, democracy now, and social documentaries.
The station’s main objective is to address: • Access to audio-visual media development, production, and distribution by diverse target groups such as NGOs, content creators, under-represented communities, and intersectional justice services • Enhances media diversity in South Africa and the region and harnesses the powerful platform of television as a tool for development and social change.
Approved Funding Amount: R2 495 000.00 (Content production: R870 000.00; Administration costs for bank fees, audit fees & insurance: R167 000.00; Transmission fees for Sentech: R700 000.00; Capital expenditure for camera, lights & UPS: R758 000.00 Fine Music Radio Fine Music Radio (FMR) started in 1995 to serve the needs of classical and jazz music lovers in the Greater Cape Town area.

FMR is the only community radio station in South Africa to broadcast only classical and jazz music.
As such it is peerless as the only radio with dedicated jazz programmes.

The station is mandated to initiate projects to make both genres more inclusive for all music lovers.

In addressing these needs, the station also sees the need for training and educating young people in the various disciplines of radio broadcasting.
One of the success stories of the station’s policy of providing broadcast opportunities and training is that of Sylvia Akach, who presented a few programmes on FMR and has just been offered a position at a big commercial radio station.

Mawande Lobi did a two- month internship with FMR and has subsequently joined the station as a compiler and presenter.

Mzukisi Maketa is another person who is realising his dream of working on the radio at FMR, successfully integrating compiling and presenting.
Fine Music Radio is currently investigating a radio production course at CPUT for Mzu, to potentially be sponsored by FMR through a trade exchange.

Fine Music Radio’s geographic licence area is the City of Cape Town.

The station’s broadcast format is 10% talk & 90% music.

Fine Music Radio’s broadcast languages are 70% English & 30% Afrikaans.

Local news and information are 50% local, 25% national, and 25% international minutes a day.

South African music content is 70%.


Fine Music Radio’s frequency is 101.3 fm.

It broadcasts 24 hours a day.

The primary aims and objectives of the project are: • Creating exposure for young jazz artists through live performances and broadcast media while also creating a learning ground and exposure to various media and music equipment to the City of Cape Town community.

• Promoting local businesses through the inclusion of small venue owners and local businesses to host live shows.
Approved Funding Amount: R1 789 600.00 (Content Production: R581 600.00; Transmission fees for Sentech: R708 000.00; Capital expenditure for refurbishment: R500 000.00) Gauteng EK FM EK FM is a community radio station based in Tsakane and serves the areas of Tsakane, KwaThema, Duduza, and other surrounding areas in the Ekurhuleni District in the Gauteng province.

The station was founded in 2007 and since its inception in 2012, has increased its listenership across the market segment.
It is a twenty-four-hour station that prioritises information, education, entertainment and community development.

The stations’ main aim is to address community issues such as unemployment, drug abuse, self-education, and youth development just to mention a few.

EK FM’s target audience is the general community between the ages of 23-45 years.

The Media Development and Diversity Agency has funded the station twice in 2011 and 2019.
The station has a sustainability plan that will ensure continued survival beyond the grant funding.

EK FM has been able to generate its revenue from airtime sales which has kept the station afloat.

The station has annual signature events that are launched annually which further 43 MDDA ANNUAL REPORT Community Broadcast Approved Projects generate revenue by at least 5%.

EK FM geographic licence area is Duduza, KwaThema, Tsakane.

The station’s broadcast format is 60% talk & 40% music.
EK FM broadcast languages are 45% IsiZulu, 20% Sesotho, 18% English,10% IsiXhosa,7% Sepedi.

Local news and information are 60% local, 15% national, 20% regional, and 5% international news.

South African music content is 80%.

EK FM frequency is 103.6 MHz.

It is broadcast 24 hours a day.

The primary aims and objectives of the project are: • Promote freedom of expression and the right to communication.

• Promote local culture, religion, and diversity.


• Provide educational programming and address health, environmental and social issues.

• Promote equal rights of participation and opportunities in gender issues.
Approved Funding Amount: R1 113 500.00 (Content production: R640 000.00; Administration: R77 000.00; Transmission fees for Sentech:R 144 000.00; Capital expenditure for inverter, field recorder and OBE: R 52 500.00) Pheli FM Pheli FM is incorporated as a non-profit organization based in Gauteng, Atteridgeville in Tshwane.

The station’s primary objectives are centered around informative, educational, and entertaining content.
The station wants to touch the lives of the people through quality programming and to be the voice of the community by providing hope in the lives of the people of Atteridgeville.

This community just like many township communities, experienced its share of crime.

The station seeks to undo this culture of crime by inculcating much-needed skills in the community.

They do this by training members of the community to be presenters and producers.
The station wants to come up with solutions and uplift the lives of the community through the airwaves and address challenges the community faces daily.

The station has worked with the community to compile a book about the Atteridgeville township.

Pheli FM geographic licence area is Sarah Baartman District.

The station’s broadcast format is 40% talk and 60% music.

Pheli FM broadcast languages are Sepedi 20%, Setswana 20% IsiZulu 20% English 20%.
Local news andiInformation are 45 minutes of news per day, of which 40% shall be local, 40% national, and 20% international news.

South African music content is 70%.

Pheli FM’s frequency is 95.5 FM.

It is broadcast 24 hours.


The primary aims and objectives of the project are: • Health problems • Substance abuse • Gender-based violence • Poverty • Unemployment Approved Funding Amount: R1 303 000.00 (Transmission fees for self-transmission: R950 000.00; Capital expenditure for inverter and OBE: R353 000.00) VUT FM Vaal University of Technology FM (VUT FM) is incorporated as a statute.

This means that it’s founded as part of the university.
The station was started in 1987 as a project for engineering students.

In 1999 discussions to have it as a campus radio started and saw the station getting a license renewable on a monthly basis.

In 2003, the station changed its constitution and applied for a community radio licence with ICASA which was granted the following year.

Its focus is to educate and empower pupils through quality programming.
The station does not limit itself only to students and young people around Vaal only, but there are shows aimed at adult audiences like “Labour Corner” and Current Affairs.

The station plays the role of also training graduates not only from the Vaal University of Technology only but neighboring institutions like Boston Media.

The station broadcasts in English, Setswana, Sesotho, and IsiZulu in order to accommodate a rich cultural mix of Sedibeng District Municipality.
VUT FM geographic licence area is Sedibeng District Municipality in the Gauteng province.

The station’s broadcast format is 60% talk and 40% music.

VUT FM broadcast languages are English, Setswana, Sesotho, and IsiZulu.

Local 44 MDDA ANNUAL REPORT Community Broadcast Approved Projects Community Broadcast Approved Projects news and information is not stated.

VUT FM frequency is 96.9 MHz.

It is broadcast 24 hours 7 days a week.


The primary aims and objectives of the project are: • To serve the interests of the community by providing information, education, and entertainment • To provide access to media training • To produce and broadcast educational programmes which serve as a cross-section of age groups in the community.

As a university, the entity seeks to empower internal and external students.
• To be the mouthpiece of the community on issues of importance • To be a developmental platform for the upcoming talent.

Approved Funding Amount: R1 950 000.00 (For capital expenditure related to studios) Westside FM Westside FM is community radio station based in Mogale city, in the West Rand District Municipality in Gauteng.

The station was established in 2013 & covers the areas of the West Rand community that includes Mogale City, Randfontein, Westonairia, Merafong & Soweto.
Westside FM geographic licence area is West Rand District Municipality.

The station’s broadcast format is 60% talk & 40% music.

Westside FM’s broadcast languages are Setswana 20%, IsiZulu 20%, English 20%, IsiXhosa 20%, Sesotho 5%, Tshivenda 5%, Xitsonga 5%, and Sepedi 5%.

Local news and information are 75 minutes of news per day, 40 minutes of which is local news, 25 minutes is national news & 10 minutes of which is international news per day.

South African music content is 70%.


Westside FM’s frequency is 98.9 FM.

It is broadcast 24 hours.
The primary aims and objectives of the project are: • Address all issues affecting various demographics in different communities it serves, as it understands that all communities face different issues & caters to the communities accordingly.\ Approved Funding Amount: R2 303 000.00 (Capital expenditure for studio, inverter & OBE) Radio Veritas Radio Veritas, established in 1999, is a Catholic radio station that aims to entertain; inform; educate; and inspire its audience as a national satellite and terrestrial broadcaster.
Its objectives are to be a recognized Catholic broadcaster serving the interests of its community; to attain suitable licencing; to reach the SADC area; to attain appropriate funding and sponsorship and be financially sound; to address social and Catholic issues; to provide a ‘life guide’ to its listeners; to become international in reach and content; to give hope and direction to its listeners; to become easily accessible to its listeners; to be grounded in the Catholic faith; to broadcast in the local vernacular; to use more than one medium to reach its audience; to provide relevant content; to broadcast professionally; to deal with social issues of our time (e.g.
HIV/AIDS and refugees); to become the African Catholic radio station; to generate programmes that are used/re-used throughout the world; to build and foster a proper Catholic broadcasting brand; to become the default broadcast medium for the South African Catholic Church; to provide proper training for those that work within Radio Veritas.
Radio Veritas has been broadcasting to Catholics and non-Catholics alike and when South Africa went into level 5 lockdown, Radio Veritas increased the number of programmes in an effort to address the needs of the faithful who were at home and not able to go to their churches and schools.
Some of the programmes introduced during that time include: Catholic Schools Virtual Open Day (a platform where Catholic School advertise themselves), an increased number of Masses, children’s programmes presented by children from different parts of the country and from various catholic schools, Catholic Corner (a weekday programme filled 45 MDDA ANNUAL REPORT Community Broadcast Approved Projects with Catholic music and reflects on feast days), Laudato Si (based on Pope Francis’ encyclical on caring for creation), In the Hands of Grace (funeral notices), Called to Serve (a religious life programme), Prayer Hour (for an end to the pandemic led by priests, religious sisters and bishops in the SACBC region, youth shows, Covid-19 Psycho-Social support programme (in collaboration with LCCL SA and CATHCA).
Radio Veritas focuses on members of the Catholic community, from children 7 years old to 90+ year-old adults.

The content of the programmes caters to children, youth, mothers, fathers and families, clergy, religious, educators, employees, and business owners, and includes features that focuses on the unemployed, refugees and victims of violence, learners, academics, musicians, people of other faiths, local and international diverse communities.

ensuring full participation, inclusivity, and collaboration.
Radio Veritas geographic licence area is Ekurhuleni Metropolitan in Gauteng.

The station’s broadcast format is 60% talk and 40% music.

Radio Veritas broadcast languages are English, SeSotho, IsiZulu, Afrikaans, Portuguese, French, and Setswana.

Local news and information are 105 minutes of news per week of which 60% shall be local news, 15% national, and 25% shall be international news.

Radio Veritas frequency is 103.8 FM & 107.5 FM.

It broadcast 24 hours 7 days a week.


The primary aims and objectives of the project are: • To be a recognized self-supporting Catholic broadcaster serving the interests of its community.
• To address social and Catholic issues; • To provide a “life guide” to its listeners; • To give hope and direction to its listeners; • To become easily accessible to its listeners; • To utilize more than one medium to reach its audience; • To broadcast professionally; • To generate programmes that are used/re-used throughout the world; • To become the default broadcast medium for the South African Catholic Church; • To provide relevant and adequate training for those who work within Radio Veritas; • Faith based shows that are inspiringly Catholic: • To have programs that are grounded in the Catholic faith; • To be a sustainable company, with a healthy balance sheet.
Approved Funding Amount: R2 203 000.00 for Capital expenditure (studio, OBE and inverter); Eastern Cape Ekhephini FM Ekhephini FM Trading is a community radio based at Barkley East under Senqu Local Municipality in Joe Gqabi District Municipality.

The station was founded in 2005 by community members and got licensed by ICASA in 2006.

The station is registered as an NPC and governed by a Board elected every three (3) years at elective general meetings.
Since the station is based in a low-economic activity area, its growth has been hampered by low revenue generation which has seen it make do with broadcasting equipment donated by the Department of Communication over 15 years ago.

Through its quality programming, the project aims to address socio-economic issues including high rate of crime, unemployment and slow development.

Ekhephini FM geographic licence area is Senqu local Municipality, Joe Gqabi District in the Eastern Cape.
The station’s broadcast format is 70% talk & 30% music.

Ekhephini FM’s broadcast languages are IsiXhosa, English, Sesotho, and Afrikaans.

Local news and information are 60% local news and 40% international.

South African music content is 80%.

Ekhephini FM frequency is 107.9 Mhz.

It is broadcast 24 hours 7 days a week.

The station’s objectives are: • to curb the high rate of crime, • Solve unemployment, especially among youth.
46 MDDA ANNUAL REPORT Community Broadcast Approved Projects Community Broadcast Approved Projects • Accelerate the rate of development.

• To inform, educate and entertain.

• Encourage and harness community cohesion among societies from different walks of life.
Approved Funding Amount: R2 529 000.00 (Transmission fees for Sentech: R 260 000.00; Capital expenditure for studios, inverter & OBE: R2 269 000.00) Engcobo FM Engcobo Religious Community Radio trading as Engcobo FM is based in Engcobo local municipality which falls under the Chris Hani District Municipality.

The station was registered as an NPO in 2015 and was issued with ICASA licence in 2017; started online broadcasting in 2020.

The project is not yet on air due to financial constraints.
The project aims to cover 70 administration areas and the station is eager to mobilise communities to move closer to the world of information that will be customised to suit their needs.

Due to the mountainous terrain around the district, the closest community radio station is unable to cover a sizeable percentage of Engcobo Local Municipality hence the need for the area to have its own medium of communication that will advance the causes of the area.
Engcobo FM geographic licence area is Engcobo local municipality, Chris Hani District in the Eastern Cape.

The station’s broadcast format is IsiXhosa 95%, English 5%.

Engcobo FM’s broadcast languages are IsiXhosa, and English.

Local news and information are 60% local news and 40% international.

South African music content is 90%.

Engcobo FM’s frequency is 96,6 Mhz.

It is broadcast 24 hours 7 days a week.


Aim of the project • To curb the unemployment rate in the community (Engcobo FM will employ 27 people) • Digital migration (the radio station will have a conversation on air about the era of technology in rural lifestyles) • Promote our cultural heritage in the language people can relate to which is 95 % Xhosa, 5% English, and music will be a mix of traditional, spiritual, and African music.
• To inform, empower and educate the community about health issues, crime, and GBV which are the principal issues/ problems the community is facing.
• To give community awareness (programs available either through the government or non-governmental organisations so that people can benefit) Approved Funding Amount: R657 000.00 (Content production: R380 000.00; Administration costs for bank fees, audit fees & insurance: R77 000.00; Transmission fees for Sentech: R200 000.00 Kingfisher FM Kingfisher FM is a non-profit organisation operating broadcasting services in the city of Gqeberha, Nelson Mandela Bay Metropolitan area.
The station broadcasts to a Christian community of interest.

Kingfisher FM has established and maintains a coordinating body called Spiritual Board which consists of a representative of Christian organisations, community-based organisations, and individuals within the coverage area.

More than 60% of Kingfisher FM’s programming is aimed at education, promotion of Christian religion, literacy, and community information.
This talks to the station’s self-stated aim of appealing to the broader community in its coverage area.

The station was founded in 1995 and has consistently been on air for 27 years.

In April 2022, ICASA issued the station with a 7-year license.

Kingfisher FM geographic licence area is Nelson Mandela Bay Metropolitan in the Eastern Cape.

The station’s broadcast format is 50% talk & 50% music.

Kingfisher FM’s broadcast languages are English, Afrikaans, and IsiXhosa.
Local news and information are 65 minutes of news per day of which 22% shall be local news,28% regional, 30% shall be national news and 20% shall be international news.

Kingfisher FM frequency is 103.8 FM & 107.5 FM.

It is broadcast 24 hours 7 days a week.

47 MDDA ANNUAL REPORT Community Broadcast Approved Projects The primary aims and objectives of the project are: • To provide Christian broadcasting services.

• To educate the community.

• To promote Christianity.


• To improve levels of literacy • Empower the community at large including children, disabled, and youth.
Approved Funding Amount: R2 663 500.00 (Administration costs for bank fees, audit fees & insurance: R60 500.00; Transmission fees for self-transmission: R400 000.00; Capital expenditure for studios, inverter & OBE: R2 203 000.00) Oasis FM On seeing the desperate situation that resulted into the collapse of the Radio Graaff-Reinet community radio station, a group of activists came together to evaluate the reasons that resulted into the collapse of Graaf Reinet radio.
It was established that the station died because there was no support from the business sector.

This was the case because within the municipality, there were very few business initiatives that were strong enough to support the station.

The only support the station received was the adverts from GCIS that would come at intervals of about two months and the rate was R 6000.00 per slot.

The volunteers started losing interest as they were spending and funding the project from their personal finances.
The activists opted to go for a district licence as this kind of licence presented a wider net for business support.

An application for a district licence was made and ICASA approved the application.

Engagements about the location of this district radio took place and Jeffrey’s Bay because of its economic muscle compared to Graaf Reinet was agreed to be the host of the new radio station.
At this point, discussions between the station and the municipality started and resulted in the municipality providing a facility to house the new station.

Twice in a row, an application for the MDDA support was sourced and unfortunately with no success.

This is a third attempt in 2022 to request for the funding and this support is our last hope.
To attract the kind of support from the business stakeholders, the station needs appropriate studios and the transmitters that will service the licenced coverage area.

ICASA has allocated the station the desired frequencies, and there is a dire need for transmitters to service these areas, by so doing, this will attract the kind of financial support as the business people will begin to hear the station’s programmes and these messages will eventually reach target audiences as well.
Approved Funding Amount: R2 450 000.00 (Transmission fees for self transmission: R300 000.00; Capital expenditure for studios & inverter: R2 150 000.00) Radio Karoo, known as Oasis is an NPC registered in 2011.

Oasis FM geographic licence area is Sarah Baartman District.

The station’s broadcast format is 60% talk & 40% music.

Oasis FM’s broadcast languages are Afrikaans 50%, English 25% IsiXhosa 25%.

Local news and information are local 60%, national 3%, international10%.
South African music content is 100%.

Oasis FM frequency is 88.4-99.7 MHz (7 Freq).

It is broadcast 24 hours.

The primary aims and objectives of the project are: • To accord an opportunity for the district government to address the following issues in an unmediated way: poverty, youth unemployment and teenage pregnancy.
Voice of Matat Voice of Matat is a station that is based in Matatiele which is a small town on the boarder of the Eastern Cape and Kwa Zulu Natal with very little happening except small businesses and agricultural sector hiring in the Alfred Nzo District Municipality.

The station was established in 2013 and got its first licence in July of 2015.

Many people in Matatiele work on the far and near town like Johannesburg and Durban.The station covers the areas of Matatiele, Butterwoth, Maluti, Mt.
Fletcher, Maclear, Elliot, Ugie, Ngcobo, Northern area of Umtata, Qumbu, Tsolo, Bizana, Lusikisiski, Bizana, Mt.

Frere, Mt.

Ayliff, Kokstad, Cedarville, Underberg, Swartberg, Harding, Umzimkhulu, Isipingo, Bulwer, Lesotho, Qacha’snek, Barkley.

48 MDDA ANNUAL REPORT Community Broadcast Approved Projects Community Broadcast Approved Projects Voice of Matat geographic licence area is Alfred Nzo District Municipality.

The station’s broadcast format is 60% talk and 40% music.
Voice of Matat’s broadcast languages are IsiXhosa 30%, English 28%, Sesotho 27% & Afrikaans 15%.

Local news and information are a total of one hundred (61) minutes of news per day.

50% minutes shall be local news, 40% minutes shall be national news and 10% minutes shall be international news.

Voice of Matat Frequency is 88.9Mhz.

It broadcast 24 hours.

The primary aims, and objectives of the project are: - To develop, produce and provide ethical programming that is aimed at developing a media house.
- To be a vehicle and partner with relevant stakeholders to alleviate social ills.

- To build a sustainable and self-supportive project promoting education, health, justice and culture.

- To encourage and promote youth initiatives in business, sports, arts and culture.
Approved Funding Amount: R1 003 763.40 (Content production costs: R 300 000.00; Administration costs: R 123 200.00; Transmission fees for Sentech: R 285 563.40; Capital expenditure (equipment) R 295 000.00) Limpopo Maruleng Community Radio Maruleng FM was established in 2009 by the youth of Maruleng and formally instituted in 2012 and broadcast on air for the first time on 04 January 2016.

Maruleng FM is a legal entity registered with the Department of Social Development as non-profit organisation.
Maruleng was granted a 5 years broadcasting licence by ICASA in 2013.

Maruleng FM is broadcasting from D21 Road at the entrance of Maruleng Showgrounds opposite Maruleng Thusong Centre and there are no rental costs that are paid by the station.

The station’s signal coverage includes areas such as the entire Maruleng Local Municipality, Tzaneen, other parts of Burgersfort, and Bushbuckridge.

The station’s content ranges from education, health, entertainment, civic, current affairs, cultural, and gospel.
The MDDA funded the station with two broadcast studios.

The community provided the station with half a hector yard rent free and the station is planning to erect houses and mini shops for rental purposes that will help the station for long term sustainability.

Maruleng FM geographic licence area is Maruleng Local Municipality in the Mopani District.

The station’s broadcast format is 60% talk & 40% music.

Maruleng FM’s broadcast languages is 100% Sepedi.


Local news and information are 100 minutes of news per day, of which 50 minutes should be local news, 35 minutes shall national news, and 15 minutes international news.

South African music content is 60%.

Maruleng FM frequency is 94.4 FM.

It is broadcast 24 hours a day.

The primary aims and objectives of the project are: • To create and improve access to local information, publicize community events, and entertain the community.
• To increase the sense of connectedness in our community between people of all ages, social, cultural, and ethnic backgrounds.

• To provide a forum for engaging in discussion on issues of local, national, and international importance.
Approved Funding Amount: R921 800.00 (Content Production: R184 800.00; Administration costs for bank fees, audit fees & insurance: R 77 000.00; Capital expenditure for refurbishment, inverter & furniture: R660 000.00) Mohodi Community Radio Station Mohodi Community Radio is incorporated as a non-profit organization (NPO) based in the Manthata Village in Limpopo.

The station was licensed in 2000 and has grown from strength since then.
Mohodi Community Radio geographic licence area is Dendron Traditional Local Council and surrounding villages.

The station’s broadcast format is 40% talk and 60% music.

Mohodi Community Radio’s broadcast languages are 100% Sepedi.

Local news and information are not stated on the license.

Mohodi Community Radio Frequency is 98.8 MHz It is broadcast 17 hours 7 days a week.
The primary aims and objectives of the project are: • Its main activity is to educate & inform listeners about their rights through quality programming.

49 MDDA ANNUAL REPORT Community Broadcast Approved Projects • Play an advocacy role on behalf of the community.

• Poverty alleviation and flight content aimed at fighting the scourge of Gender-Based Violence.
Approved Funding Amount: R1 834 000.00 (Content production: R100 000.00; Administration costs for bank fees, audit fees & insurance: R77 000.00; Capital expenditure for one studio, refurbishment, desktop, laptop & printer: R1 657 000.00) Moletsi Community Radio Moletsi FM is incorporated as Non-Profit Organization based in the Limpopo province.

This is one of the few community radio stations led by a woman proportionally speaking.
We have seen the station operating from a small studio and now they own a big structure with the intention of venturing into television as well.

The station has managed to install a towering tower within its premises.

The project was initiated in 1997 and it operates from Moletsi village outside the city.

The station is licensed to broadcast in Polokwane Local Municipality.

Moletsi FM geographic licence area is Polokwane Local Municipality in the Limpopo province.
The station’s broadcast format is 65% talk and 35% music.

Moletsi FM broadcast languages are 80% Sepedi, 10% English, 5% Tshivenda & 5% Xitsonga.

Local news and information 80 minutes of news per day of which 70% shall be local news, 20% shall be national news and 10% shall be international news.

Moletsi FM Frequency is 98.6 MHz.

It is broadcast 24 hours 7 days a week.

The primary aims and objectives of the project are: • To influence transformation in society.
• To participate in moral regeneration over the airwaves.

• To overcome the destructive doctrinal influences that could cause disruptions and conflict.

• To create a tool that would help educate, inform, entertain, and most importantly, • Empower the community in making informed decisions in a democratic environment.
Approved Funding Amount: R2 020 000.00 (Administration costs: R60 000.00; Capital expenditure for studios & printer: R1 960 000.00) Waterberg Wave Community Radio Station The Waterberg wave community radio is a station within the Waterberg District in the Limpopo province.

The primary objective of the radio station is to give the Waterberg area a local community radio station and therefore a voice and access to information about the outside world of opportunities.
The station’s target audience are children aged 7-17 years and youth aged 18-35, women and men over 35 years, people living with disabilities, LGBTQIA communities, victims, survivors of GBVF, traditional practitioners and traditional leaders and the elderly (above 60).
Waterberg Wave CR programmes include a broad range of topics engaging with expects on the following fields: community development, health, politics, education, environment, tourism and nation building, through their programming the station strives on language and cultural diversification, in promoting local African languages and assisting government to promote social cohesion.
Waterberg Wave Community Radio’s geographic licence area is Waterberg and surrounding areas in Limpopo province as per the licence spectrum.

The station’s broadcast format 60% talk, 40% music.

Waterberg Wave Community Radio broadcast languages 60% Sepedi, 20% English,10% Setswana, 5% Afrikaans and 5% IsiNdebele.

The licensee shall broadcast news to a total of 70 minutes per day of which 60% will be local, 30% national and 10% international news.

South African music content is 80%.


Waterberg Wave Community Radio frequency is 92.8 MHz.

It is broadcast 24 hours.

The primary aims and objectives of the project are: • To create opportunities in the media industry.

• To create local platforms to access information by state and corporate sector.

• To create a community voice for participation in government initiatives.

• To unearth rural performing arts talent and expose it to outside world.
Approved Funding Amount: R2 250 000.00 (Transmission fees for Sentech: R300 000.00; Capital expenditure for studios & inverter: R1 950 000.00) 50 MDDA ANNUAL REPORT Community Broadcast Approved Projects Community Broadcast Approved Projects Free State Med FM Med FM is a community radio station that broadcasts health and health-related matters to the listeners in a modern presentable way.

Parallel to that a social outreach programme to promote health and nutrition to targeted populations.
This is a purely a new concept with huge potential to contribute to the improvement of the health and lifestyles of the target population.

In November 2009 the station was granted a 5-year class broadcasting licence.

Successful programmes were broadcast which proved that the station can be successfully managed and the feedback from listeners was positive.

In 2019, the station had 35 000 listeners according to the RAMS system (what is the current listenership).
The initiative has been successful in Bloemfontein and the station plans to expand its model in other platforms.

Med FM’s geographic licence area is greater Bloemfontein.

The station’s broadcast format is 40% talk & 60 % music during weekdays and 50 % talk & 50 % music during weekends.

Med FM’s broadcast languages are 40% Sesotho, 30% English & 30% Afrikaans.
Local news and information are 6 minutes per hour over a 12-hour period, 80% of news must be local, 10% provincial,5% national, 3% continental, and 2% international.

South African music content is 80%.

Med FM Frequency is 104.1.

It is broadcast 24 hours a day.

The primary aims and objectives of the project are: • To demystify health by bringing related information and content to communities through radio and other means of communication.
• To form strong partnerships with private and public organizations in pursuit of preventative health care and social understanding.

• To develop community journalism in support of our platforms for free healthy communication.

• To involve communities in the promotion of activities that support and entrench healthy lifestyles.

• To promote social enterprise development as a key towards independent healthy living.
Approved Funding Amount: R1 334 000.00 (Transmission fees for Sentech: R229 000.00; Capital expenditure for one studio & inverter: R1 105 000.00) KwaZulu Natal Nongoma FM Nongoma FM is a community radio station based in Nongoma, KwaZulu Natal in the Zululand District Municipality.
The station was formed & registered in 2011, The station was funded by the MDDA for the studios in 2013 & since then, Nongoma FM 88.3 has been on-air and consistent with programmes & the station has been able to raise enough funds per month which allows the station to pay fixed expenses like electricity, WIFI connection, etc.

The station has also managed to create jobs in the community which is a huge challenge for the people specifically for the youth.
It has been bridging the gap in small ways it can through opportunities it gives to the youth.

As much as the station tries to assist the community it serves, Nongoma FM has financial challenges which hinders the station from offering substantial stipends as well as proper branding for the station’s visibility and the station is also in a remote area which is a challenge as the internet and access to a mass population is limited.Nongoma FM geographic licence area is Nongoma and surrounding areas.
The station’s broadcast format is 55% talk and 45% music.

Nongoma FM’s broadcast languages are 70% IsiZulu, and 30% English.

Local news and information are 169 minutes of news per day of which 75 minutes is local news and 69 minutes is national news and 25 minutes is international news.

South African music content is 60%.

Nongoma FM frequency is 88.3 FM.

It is broadcast 24 hours.


The primary aims and objectives of the project are: • Bridge the gap of communication between those who have the power to make decisions and the communities it serves.

• Provide community-based non-commercial services for people living in the areas covered by the station’s spectrum.

• Broadcast programmes designed to serve the needs of those not currently served by other broadcast media in the Nongoma community.
Approved Funding Amount: R1 393 000.00 (Transmission fees for Sentech: R 265 000.00; Capital expenditure for one studio & OBE: R1 128 000.00) 51 MDDA ANNUAL REPORT RESEARCH, TRAINING, AND DEVELOPMENT-2022/23FY RESEARCH, TRAINING, AND DEVELOPMENT-2022/23FY CAPACITY BUILDING MDDA/FPB Child Protection Week The Agency partnered with the Film and Publications Board (FPB) to commemorate Child Protection Week (CPW) in June 2022, as a national strategy to embrace childcare and protection.
The team hosted a series of events in Mpumalanga, Northern Cape, and Gauteng.

The aim of the programme was to educate children and parents on the importance of online safety and being responsible digital citizens.

The events were attended by more than 100 people including students, teachers, parents, government departments, and civil organizations.
Governance and Compliance Workshops During September 2022, the Agency implemented one-day workshops on Governance and Compliance Management in Limpopo, Kwazulu- Natal, Western Cape and Eastern Cape provinces respectively.

The workshops covered subjects such as corporate governance principles, structures, clear roles and responsibilities, compliance with MDDA grant and other external organisations compliance obligations.
Ponelopele Culture of Reading Event The Agency collaborated with Ponelopele Reading Club and Library in pursuance of its mandate of promoting literacy and a culture of reading in previously disadvantaged communities.

On 10 December 2022, the Agency visited the Club in Botlokwa village, Limpopo province to donate books to the children that the project caters for.
In addition, the Film and Publications Board also facilitated a session with children that are members of the reading club on cyber bullying and online safety.

More than 50 children attended the session.

Radio Management Training In line with the theme of governance, management, and leadership the Unit also held radio management training for Gauteng-based radio stations.

The training was held from 22 to 25 March 2023.


This was an MICT Seta accredited training covering Finance and Business Strategy Skills offering theoretical aspects and practical financial management and business strategy design skills to community radio managers.

It was facilitated by Radio101, and attended by 18 Gauteng community The workshop was aimed at managers and Board members from print radio station managers.

and broadcast projects.


About 103 people from 51 projects, participated MDDA/NEMISA Corporate Governance Training The Agency partnered with the National Electronic Media Institute of South Africa (NEMISA) to implement a 2-day 5iQ Community Radio Board Governance training in Johannesburg and Cape Town respectively.

The training was targeted at Boards and management of community radio stations and was facilitated by Dr Harlan Cloete from the University of the Free State.
The sessions covered subjects around promoting organizational values and decision making, effective governance, board strategies and structures, codes of conduct, and ethical practices.

Gauteng sessions were hosted on 11 to 12 and 18 to 19 March 2023, and attended by stations from Gauteng, Limpopo, Free State, North-West, and Mpumalanga provinces.

Each radio station was represented by three (3) Board members and one (1) station manager.
The Cape Town session was hosted on 25 to 26 March 2023 for Western Cape based community radio stations.

A total of 100 community radio managers and Board members benefited from this training.

in this workshop.

Interactive Media Workshop The Agency hosted Interactive Media Training from 11 to 13 October 2022, in the North-West province.

The training was aimed at equipping media practitioners to plan and create websites.
This included authoring /compiling /putting together components for user interface design for communication, entertainment, and information devices.

Participants learnt to compile interactive presentations, graphics, photographic elements, or visual content for marketing purposes.

The key subjects covered were design and developing creative elements for interactive media solutions and gathering interactive media content.
It was facilitated by Radio 101, and attended by 23 radio and print community media practitioners.

Grantee Orientation Workshop 2022 This workshop is designed for all new grantees with the purpose of training them on Management (finance, project, and business), Governance, and Compliance.

These grantees are projects that were approved for funding by the Board at its October 2022 meeting.
The aim was to broaden their understanding of the functions of the MDDA, processes, and procedures that may impact their funding, and generally comply with MDDA support requirements and other organizations.

The workshop was implemented from 8 to 9 December 2022.

About 75 people consisting of delegates from funded projects and sector stakeholders attended this session.
52 MDDA ANNUAL REPORT RESEARCH, TRAINING, AND DEVELOPMENT-2022/23FY RESEARCH, TRAINING, AND DEVELOPMENT-2022/23FY RESEARCH, TRAINING, AND DEVELOPMENT-2022/23FY Leadership and Mentorship Programme Small Commercial and Community Media Sustainability The Agency implemented a pilot leadership programme for Kwa Zulu Model Natal community media projects.

The training was held on 27 to 29 As the MDDA approaches its 20th anniversary in 2023, the agency March 2023 in Durban.
The programme consists of two (2) components, appointed Redflank Solutions Pty (Ltd) to conduct a comprehensive which includes the three-day training followed by three-months study and develop a community media sustainability model.

The mentorship sessions.
The training focused on the QMS Fundamentals, objective was to determine the levels of sustainability within the effective leadership in the context of both the internal and external community media sector using UNESCO defined Media Viability operating environment, PETSLE and SWOT, people management, Indicators, understand the factors contributing to sustainability or lack organisational development, conflict resolution and discipline in the thereof, and ultimately develop sustainability strategies.
The actual workplace.

It was facilitated by SSB Consulting, attended by 20 radio research project was initiated during the 2021/22 financial year and a and print management representatives.

Sustainability Model was developed during the 2022/23 financial year MDDA/FPB Digital Literacy Programmes Online Youth Safety Event as per the MDDA Annual Strategic Plan.
MDDA Strategy Implementation Review and Impact The Agency in partnership with the FPB, implemented Online Safety Assessment Youth events hosted at various South African Universities.
The purpose The Agency appointed Mogadigadi Business Solutions to undertake was to bring together content creators and distributors, government, a five-year implementation review of the MDDA’s strategy, to enable non-governmental institutions, academia and youth to discuss the the organisation to reflect on and plan its future performance with state of online safety in South Africa and explore possible safety regards to inputs, outputs, outcomes, and impact.

The purpose is to measures.


determine the extent to which the MDDA is responding to its mandate of community media development and diversity.

The MDDA participated on a roadshow event hosted on 8 September 2022 at the North-West University, a summit hosted at the University of Limpopo on 22 to 23 September 2022, Safer Internet Day at Nelson Mandela Bay Stadium on 07 February 2023, and an Online Safety event hosted at Eastcape Midlands TVET College on 8 February 2023.
RESEARCH AND DEVELOPMENT Future Proofing Community Radio Training Needs Assessment Report Through the partnership with NEMISA and the NAB, the Agency achieved the finalisation of the Future Proofing Community Radio Report in April 2022.

Critical outcomes of the workshops included updates about upcoming policy and technological shifts; profiling/sharing the work of different entities working in the broadcasting ecosystem, and fostering partnerships, networking, and shared learning.
A training needs assessment was conducted with participants during March 2023 workshops to ensure NEMISA and MDDA’s future training offerings for community radio were shaped by the needs and gaps identified by participants and practitioner.

53 MDDA ANNUAL REPORT PART C: PART C: GOVERNANCE 54 MDDA ANNUAL REPORT PART C: 1.

INTRODUCTION Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account.
In addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act, corporate governance with regard to public entities is applied through the precepts of the Public Finance Management Act (PFMA) and run in tandem with the principles contained in the King’s Report on Corporate Governance.

Parliament, the Executive and the Accounting Authority of the public entity are responsible for corporate governance.

2.
2.

PORTFOLIO COMMITTEES The entity was invited to appear before the Parliamentary Portfolio The Portfolio Committee utilised the meetings as a tool to exercise its Committee on Communications and Digital Technology on the 19th oversight over the MDDA and to receive assurance on the performance April 2022, 23rd August 2022, 11th October 2022 and 7th March 2023. of the organisation.
These meetings allowed the Portfolio Committee to consider the performance of the entity in terms of the approved Annual Performance Plan.

3.

EXECUTIVE AUTHORITY MDDA submitted quarterly performance information and financial information reports to the Executive Authority on the following dates: Quarter 1- 30th July 2022 Quarter 2- 29th October 2022 Quarter 3- 31st of January 2023 Quarter 4- 30th April 2023 55 MDDA ANNUAL REPORT1.

INTRODUCTION 1.
INTRODUCTION 1.

INTRODUCTION Introduction The MDDA Act stipulates that the Board ought to consist of nine (9) Code of Conduct The Board is committed to a code of conduct, which it reviews and members; six (6) members are appointed on the recommendation adopts on an annual basis.
This code of conduct ensures that each of Parliament, after a public nomination process which is open, member acts with integrity when performing his or her responsibilities transparent, and with a publication of a shortlist of candidates for on behalf of the MDDA.

The Code outlines the Board’s fiduciary duties appointment.
Three (3) members are appointed by the President, taking and defines its responsibilities towards stakeholders, staff members, into consideration the funding of the Agency, of whom one (1) is from and government.

the commercial print media and another one (1) from the commercial broadcast media.

The President of the Republic of South Africa All members of the Board have also taken an oath or affirmation appoints one (1) of the members as Chairperson of the Board.
Members committing them to the principles of fairness; freedom of expression; are appointed on a non-executive basis and are required to commit openness; accountability; and upholding and protecting the to fairness, freedom of expression, openness, and accountability.

Constitution and other laws of the Republic of South Africa.
Members take an oath or affirmation before performing duties, committing themselves to upholding and protecting the Constitution Composition of the Board and other laws of the Republic.
The role of the Board is as follows: 2022/2023 MDDA Board and Committees In line with Section 4 of the MDDA Act, the President of the Republic The Board acts as an Accounting Authority and appoints the Chief appointed Prof. Hlengani Mathebula as the MDDA Board of Directors’ Executive Officer in terms of Section 13 of the MDDA Act.

Chairperson, effective from the 8th June 2021, for a period of five years.
The Agency acts only through the Board, which is required by law to Ms Carol Mohlala, and Ms Martina Della Togna, were also appointed be independent; impartial; and to exercise its powers and perform its to the Board on the 19th May 2022.

These Board members joined, Ms duties without fear, favour or prejudice; and without any political or Brenda Leonard, Ms Andiswa Ngcingwana, Ms Marina Clarke and Ms commercial interference.
The role of the Board also includes the following: Zanele Mngadi (the shareholder representative), Ms Nadia Bulbulia (commercial broadcast representative) and Mr Hoosain Karjieker • It holds absolute responsibility for the performance of the MDDA (commercial print media representative) as Board Members.

Ms and retains full and effective control over the MDDA.
Andiswa Ngcingwana resigned from the Board with effect from the 4th • It ensures that the MDDA complies with applicable laws, April 2022 and Ms Zanele Mngadi exited the Board on the 15th May regulations and policy.

2022, when her term of office expired.

Ms Nomkhosi Peter joined the • It formulates, monitors, reviews corporate strategy, major plans Board as the shareholder representative from the 6th December 2022. of action, risk policy, annual budgets and business plans.
Ms Peter resigned from the Board on the 31st March 2023, due to her • It ensures that the shareholders’ performance objectives are secondment from the GCIS to the MDDA, as the MDDA Acting Chief achieved.

Executive Officer effective 01 april 2023.

• It manages potential conflicts of interest and develops a clear definition of levels of materiality.
Upon appointment and after taking an oath of office, new members • It ensures financial statements are prepared and that the were inducted through provisions of relevant documentation.

The Board maintains a high standard of integrity, responsibility and formal induction programme for new Board members took place on accountability at all times.

the 24th August 2022 and 16th March 2023.


This programme is aimed at equipping directors with sufficient knowledge and understanding Further, the MDDA Act provides for the Agency not to interfere in the of the operations of the MDDA, the opportunities and challenges editorial content of the media.
facing the Agency, including the key risks, which would enable them to effectively contribute to strategic deliberations and exercise their duty Board Charter The MDDA Board has approved a Board Charter, which is reviewed of oversight over the Agency.

annually.
annually.

The purpose of this Charter is to set out the Board’s role The Agency has continued to enjoy sustained support from the Executive and responsibilities, its authority, composition, functioning and other Authority which has provided guidance in terms of national policy related matters.

It serves as a source of reference for existing and priorities.
The bilateral meeting between the Agency and the Ministry new directors, and all directors of the Board are familiar with the occurred on the 28th March 2023.

The engagement assisted both the contents of the Charter.

Board meetings and administration have been shareholder and the Agency in maintaining alignment between the implemented according to the Board Charter which serves as a guide strategic direction of the Agency and that of national government.

for all Board activities.


56 MDDA ANNUAL REPORT 1.

INTRODUCTION 1.

INTRODUCTION The Board of Directors met for four (4) ordinary Board meetings Ms C. Mohlala and Ms. M. Della Togna were appointed to a working and three (3) special Board meetings during 2022/23 to process the group, together with management representatives to consider the statutory, strategic and policy requirements of the organisation and planning for the 20-year MDDA review and celebrations.

to provide guidance to Executive Management.


These meetings also ensured that the disbursement of funds to community broadcast and Below are the meetings held by the Board of Directors during the print media were approved, and such disbursements closely monitored.

2022/23 financial year.

The Board held a Strategic Planning Session which took place on the 2022/2023 MDDA Board of Directors Meetings (includes continuations 1st and 2nd September 2022.
These fruitful sessions drew attention to and special meetings) strategic areas of focus for the Board as detailed in the 2023/24 Annual • 22nd April 2022.

Performance Plan.

• 25th May 2022.

• 27th & 29th July 2022.


The MDDA Funders Breakfast is an annual event held with current and • 1st September 2022. prospective funders to report on MDDA’s key interventions, demonstrate • 26th October 2022. how funds were utilised in the previous financial year and how future • 25th January 2023. funding will be channelled to advance the mandate of providing an • 13th February 2023. environment for community media development and diversification.
The annual Funder’s Breakfast was held on the morning of the 24th March 2023, and was attended by Prof Hlengani Mathebula, Ms Marina Clarke, Ms Brenda Leonard, Mr Hoosain Karjieker, Ms Martina Della Togna and Ms Peter, as representatives of the MDDA Board.

Members of the Board also attended various studio unveilings of community radio stations during the year.

The appointment of Board members has translated to an improvement in the structuring of the governance committees of the MDDA.
With additional members serving on the Board, the organisation has been able to better utilise its already established committees to improve decision making by the Board of Directors.

The MDDA Board consisted of four (4) Committees during 2022/23: Audit and Risk Committee; Projects Oversight Committee; Research, Capacity Building, Monitoring and Evaluation Committee and the Corporate Affairs Committee.
The Committees have provided the Board with recommendations and reports which ensures transparency and full disclosure of the Committees’ activities.

An independent Non - Executive Director serves as a Chairperson in each Committee.

The Audit and Risk Committee members consists of Mr Fortune Mkhabela, Ms Margaret Phiri and Ms Matseliso Shongwe, who were appointed as independent members of the committee from the 1st April 2021 and have served the Committee diligently.
It should also be noted that the Shareholder Representative, Mr Simon Mankgaba served on the Audit and Risk Committee, together with the Board Representative, Mr Hoosain Karjieker.

Ms Brenda Leonard served as an alternate Board representative in the event that Mr Karjieker was unable to attend Audit and Risk Committee meetings.

57 MDDA ANNUAL REPORT Composition of the Board Composition of the Board Name Designation Date Date resigned Qualifications appointed Area of Expertise Committee No.
of Membership Meetings attended Prof. Hlengani Non-Executive 1st September Active PhD from the Banking & None 9 Mathebula Director 2020 and Board Chairperson University of Pretoria Finance.

Master of TAX.

Management from Media & the University of the Communication.

Witwatersrand Governance.

Bachelor of Arts (B.A.


), BTH (Hons) From the University of the North (Limpopo) Ms Andiswa Non-Executive 1st September 4th April 2022 Master of Business Financial Project 0 Ngcingwana Director 2020 Administration (MBA) management.

Oversight 2013 Strategic, annual Committee and National Diploma in and operational Audit and Risk Commercial Practice planning.

Committee 2001 Monitoring and Evaluation.

Auditing.

as well as research and development.


Ms Brenda Non-Executive 1st September Active BA in Communication Community Corporate 23 Leonard Director 2020 Science degree from media especially Affairs the University of radio.

Committee South Africa Advanced Community (Chairperson), development.
Research, Certificate in Media Management from the University of the Witwatersrand Certificate in Media Management from the University of the Witwatersrand Certificate in Media Development From DW-Akademie Capacity Building and Monitoring and Evaluation Committee and alternate member of the Audit and Risk Committee 58 MDDA ANNUAL REPORT Composition of the Board Composition of the Board Composition of the Board Name Designation Date Date resigned Qualifications appointed Area of Expertise Committee No.
of Membership Meetings attended Ms Marina Non-Executive 1st September Active BA Drama from the Disability.

Research, 29 Clarke Director 2020 University of Pretoria.

NPO Capacity Advanced management.

Building and Management Training & Monitoring Programme (NQF7) capacity building.
and Evaluation from the Rhodes Business School Being a Director from the Institute of Directors in South Africa Committee (Chairperson) Corporate Affairs Committee (until 25 January 2023 when she was replaced by Ms N. Peter), and Project Oversight Committee Ms Nadia Bulbulia Non-Executive 10th Active Master’s Degree Policy and Corporate 22 Director September (Humanities) from Regulation.
Affairs Committee and Projects Oversight Committee and commercial 2021 the University of the broadcast representative Witwatersrand Honours Degree (BADA) from the University of the Witwatersrand Teacher’s Diploma Speech & Drama (LTCL) from Trinity College (London) International Relations Certification from the Clingendael Institute (Netherlands) Mr Hoosain Non-Executive 17th November Active Bcompt Accounting Audit and Projects 25 Karjieker Director 2021 from the University Accounting.
Oversight and commercial print representative of South Africa Media Committee Diploma in internal Management.

(Chairperson) auditing from the Cape Peninsula University of Technology and Audit and Risk Committee 59 MDDA ANNUAL REPORT Composition of the Board Name Designation Date Date resigned Qualifications appointed Area of Expertise Committee No.

of Membership Meetings attended Ms Carol Mohlala Non-Executive 19th May 2022 Active BA Media Studies Media Relations.
Projects 8 Director from the University Digital Media.

Oversight of the Witwatersrand Social Media.

Committee Ms Martina Non-Executive 19th May 2022 Active Master of Fine Arts Media and Projects 9 Della Togna Director (MFA) from AFDA Communication Oversight Community Print Media.

Strategy.

Film & TV Committee and Research, Production – Capacity Documentary Building and and Drama.

Monitoring Media Studies and Evaluation Research.

Committee Organisational Development.


Ms Zanele Non-Executive 19th May 2020 15th May 2022 Public Relations Political Research, 2 Mngadi Director and Management management.

Capacity shareholder representative Diploma (1995) Development of Building and Human Resources communication Monitoring Management strategies.

and Evaluation Overview and Content Committee Compliance development.

Certificate (2015).

Public Director Development participation.


Programme (2015) Media Chartered Public management, Relations Practitioner General public sector management and brand and stakeholder management.

Editing and proofreading expertise.

Management, administrative and leadership competencies.

60 MDDA ANNUAL REPORT Composition of the Board Composition of the Board Name Designation Date Date resigned Qualifications appointed Area of Expertise Committee No.
of Membership Meetings Ms Nomkhosi Non-Executive 6th December 31st March 2023 Postgraduate Strategic Peter Director and 2022 Diploma: Corporate planning, attended 3 shareholder representative Governance and Intellectual Compliance from property and the University of technology Johannesburg development and M.Sc (Med) Bioethics transfer, and Health Law from Innovation the University of the management, Witwatersrand Business Management development, Development Policy Programme (MDP) formulation, from the University Operations of South Africa management, B. Sc (Hons.)
Corporate Microbiology from governance, the University of Legal/ regulatory Pretoria compliance.

B.Sc: Biotechnology from the University of Western Cape 61 MDDA ANNUAL REPORT Committees Committees Committee No.

of meetings held No.
of members Name of members Audit and Risk Committee • 11 April 2022 • 16th & 19th May 2022 • 22nd, 25th & 29th July 2022 • 10th August 2022 • 29th September 2022 • 17th October 2022 • 31st October 2023 • 16th and 30th January 2023 • 31st January & 17th February 2023 • 20th March 2023 Projects Oversight Committee • 6th April 2022 • 15th July 2022 • 16th September 2022 • 14th & 18th October 2022 • 28th November 2022 • 13th January 2023 Corporate Affairs Committee • 4th April 2022 • 13th May 2022 • 11th July 2022 • 20th September 2022 • 10th October 2022 • 9th January 2023 • 3rd & 13th February 2023 • 9th March 2023 Research, Capacity Building, • 5th April 2022 Monitoring and Evaluation • 12th July 2022 Committee • 11th October 2022 • 10th January 2023 5 5 3 3 Mr Fortune Mkhabela (Chair) Ms Margaret Phiri Ms Matseliso Shongwe Mr Simon Mankgaba Mr Hoosain Karjieker (Board Representative) Mr Hoosain Karjieker (Chair) Ms Nadia Bulbulia Ms Carol Mohlala Ms Marina Clarke Ms Martina Della Togna Ms Brenda Leonard (Chair) Ms Nadia Bulbulia Ms Marina Clarke Ms Marina Clarke (Chair) Ms Brenda Leonard Ms Martina Della Togna Remuneration of board members The Board was remunerated, in accordance with National Treasury Regulations.
Ms C. Mohlala, Ms Z. Mngadi, Ms A. Ngcingwana and Ms N. Peter, were not eligible for remuneration due to their employment by organs of state.

Prof. H. Mathebula elected not to receive remuneration from August 2022 to December 2022.

Board members were also reimbursed for their travel costs which were incurred in the execution of their duties.
The Board’s remuneration for 2022/23 until 31 March 2023 was therefore as follows: Non Executive Board Member Remuneration Independent Audit and Risk Committee Remuneration Name Ms M. Phiri Ms. M. Shongwe Total Remuneration 35 970.00 54 370.00 90 340.00 Name Remuneration Prof H. Mathebula Ms N. Bulbulia Ms B. Leonard Mr H. Karjieker Ms. M. Clarke 113 109.00 146 154.00 205 434.00 181 980.00 209 184.00 Ms M. Della Togna 94 770.00 Total 959 510.00 62 MDDA ANNUAL REPORT Committees 5.

RISK MANAGEMENT 5.
RISK MANAGEMENT 5.

RISK MANAGEMENT ERM is a strategic imperative in the MDDA to ensure that the The objectives of this framework are to embed a uniform approach organisation sets clear and realistic objectives, understands critical to ERM at the MDDA and identify and assess all the risks that risks associated therewith and develops mitigation strategies to could affect the achievement of the Agency’s objectives, its people, manage such risks.
The department recognises the King IV Report on reputation, business processes and systems, as well as its financial and Corporate Governance as best practice.

environmental performance.

It also serves to ensure that these risks It requires that the organisation should establish a risk management structure that will adequately identify, measure, monitor and control Audit and Risk Committee are dealt with at an acceptable level.

the risks involved in its various operations and lines of business.
The The MDDA has established the Audit and Risk Committee that advises organisation’s risk management framework is in line with the PFMA 1 of the Accounting Officer on governance, risk management and controls.

1999, as amended; and the Public Sector Risk Management Framework It comprises of an independent audit and risk chairperson, two non- (2010).

executive members, one representative member from the board.
The Acting CEO and the CFO who represent the agency’s operational The MDDA approach to Enterprise Risk Management (ERM) is aimed at function, and the CAE who represent the core operational function evaluating, managing and optimising the opportunities, threats and of internal audit activity.

The Audit and Risk Committee adopted an uncertainties that the MDDA may encounter in its efforts to maximise approved terms of reference as contained in the ARC Charter that sustainable shareholder value.
Risk management is supported by the regulates its affairs and discharges all its responsibilities in compliant Audit and Risk Committee (ARC) and assured by external audits and the with the charter.

The committee is responsible for oversight of issues Internal Audit function.

that are reported at the agency’s hotline.


ERM is designed to identify potential events that may affect the organisation, manage risks within its risk appetite and ultimately Risk profile of the Agency provide reasonable assurance that the MDDA will achieve its ARC approved fourty-three (43) risks for the 2022/23 financial year.

Of objectives.
Of objectives.

ERM is applied throughout the organisation and the process the fourty-three (43) risks, eleven (11) are strategic risks, thirty-two (32) is supplemented by the MDDA Risk Management Framework and a are operational risks.

All risks were managed to acceptable risk levels.

comprehensive set of risk policies and limits.


Embedding risk management techniques in day-to-day operations equips the MDDA to identify events that affect its objectives and manage risk in a manner consistent with the corporate strategy.

Within this context, all risk to the Agency, including those associated with sustainability, are managed according to the ‘three lines of defence’ governance model, as outlined above.

6.
6.

INTERNAL CONTROL UNIT Our review of the findings of the Internal Audit work, which was • Risk management audit.

conducted on the risk-based approach in the agency revealed certain • ITC audit.

weaknesses, which were then raised with the agency.

• POPI Act.

The following internal audit work was completed during the year under • SCM audit.

review: • Financial Management-Audit of Travel and subsistence process.

• Annual Financial Statement 2022/23.


• Audit Improvement plan 2022/23 and internal audits follow up (all • Audit of Performance Audit ( all quarters).

quarters).

• HR Performance agreement and appraisal.

• HR Leave Management audit.

• Grant and seeding audits.

• APP review 1st draft 2022/23 63 MDDA ANNUAL REPORT Name Ms M. Phiri Ms. M. Shongwe Total Remuneration 35 970.00 49 792.00 85 762.00 7.

7.
7.

INTERNAL AUDIT AND AUDIT COMMITTEES INTERNAL AUDIT AND AUDIT COMMITTEES Key activities and objectives of the internal audit • Ensuring the effectiveness and efficiency of internal controls.

Key activities and objectives of the audit committee • Administering compliance with rules and legislation.

• Evaluating internal controls.

• Monitoring regulatory compliance.

• Verifying and protecting assets.

• Safeguarding the organisation’s assets and properties from loss, waste as well as fraud.
• Ensuring that the company’s policies on the code of conduct and ethics satisfy the requirements.

• Coordinating with other committees to understand the risks and responsibilities and the effect on financial reporting.

• Providing oversight of the financial reporting process, the audit process, the company’s system of internal controls and compliance with laws and regulations.

• Ensuring the organization’s financial statements are understandable and reliable.
Name Qualifications Internal or If internal, Date Date Resigned No.
of Meetings external position in the appointed attended public entity Mr Fortune Bachelor of Commerce in External NA 1 April 2021 Active 12 Mkhabela Accounting (CISA) Honours in Accounting Certified Internal Auditor Certification in Control Self- Assessment Certificate in Risk Management Ms Margaret Phiri Bachelor of Commerce Accounting External NA 1 April 2021 Active (CASA) BCompt, Honours Ms Matseliso Bachelor of Commerce Accounting External NA 1 April 2021 Active Shongwe (CASA) Mr Simon Mankgaba Post Graduate Diploma in Internal External NA 16 July 2020 Active Auditing Honours in Accounting Btech in Internal Auditing Management Development Programme Diploma in Criminal Justice and Forensic Investigations National Diploma in Internal Auditing 12 13 12 Mr Hoosain B. Compt Accounting and Diploma External NA Active 12 Karjieker (Board in Internal Auditing Representative) 64 MDDA ANNUAL REPORT Name Ms M. Phiri Ms. M. Shongwe Total Remuneration 35 970.00 49 792.00 85 762.00 7.
7.

INTERNAL AUDIT AND AUDIT COMMITTEES INTERNAL AUDIT AND AUDIT COMMITTEES 8.

COMPLIANCE WITH LAWS AND REGULATIONS 8.

The entity has drafted a compliance matrix, which alludes to all COMPLIANCE WITH LAWS AND REGULATIONS legislative frameworks applicable to the MDDA.

The Audit and Risk Committee conducts oversight against quarterly reporting of the entity’s compliance with the compliance matrix and reports to the MDDA Board on progress of the entity in this regard.

9.
9.

FRAUD AND CORRUPTION Fraud and anti-corruption forms an essential pillar of the MDDA’s With the approval of the Fraud and Anti-Corruption Strategy and ERM philosophy.

The Fraud and Anti-Corruption Strategy and Policy Policy, there has been continuous focus on awareness and information adopts a comprehensive approach to the management of fraud risk.
sharing on what constitutes fraud, possible types of fraud, reporting Through a range of strategies and policies that integrates fraud and mechanisms and whistle-blowing processes as well as the promotion anti-corruption, ethics and integrity management, the organisation of various avenues to report allegations of fraud and corruption such seeks to ensure the existence of effective controls that assists with as the Public Service National Anti-Corruption Hotline: 0800 701 701, the prevention and detection of fraud and corruption, as well as to Special Investigating Unit (SIU): 0800 037 774, Public Protector of SA: provide guidelines on how to respond should instances of fraud and 0800 112 040, The Presidential Hotline: 17737. corruption be identified.
In terms of these policies, any employee involved in fraud or corruption A fraud and corruption prevention and awareness plan is in place, will be summarily dismissed.

Any person found guilty of such emphasising the importance of understanding how to identify, prevent charges will further be reported on as required by the Public Finance and report fraud at the MDDA.
A Fraud Hotline which is managed Management Act, (No.1 of 1999), have criminal charges laid against independently was also implemented in order to provide a mechanism them and face legal action to recover the amounts involved.

for the reporting of complaints by both internal and external stakeholders.

An annual strategic risk assessment was conducted in 2022/2023 with the intention of identifying unwanted events (with negative impact on the MDDA).
Specific control measures were identified in order to reduce the likelihood and impact of the identified risks.

The Risk Management process is a continuous process, and the risks and controls will be frequently revisited to improve the effectiveness of the control environment to enable achievement of company objectives.

10.

MINIMISING CONFLICT OF INTEREST The MDDA Board approved the revised Code of Conduct and Ethics Policy, which was then shared with all staff.
All employees conduct an annual Declaration of Interest.

All other processes, including hiring and supply chain management, also include declarations of interest.

Members should be recused if they are in a conflict of interest as defined by the policy.

65 MDDA ANNUAL REPORT 11.

CODE OF CONDUCT 11.


The updated Code of Conduct and Ethics Policy was approved by the CODE OF CONDUCT regarding what is appropriate and unacceptable in the workplace MDDA Board, pledging the Agency, its external partners, and its staff without requiring continual managerial oversight.

The MDDA sent its to the highest moral standards.


The Agency’s fundamental ethical employees to an Ethics course presented by the National School of values, aspirations, and principles are summarized in the Ethics Policy Government (NSG), which was attended by 89% of the entire staff in a succinct, aspirational manner.

The Code of Conduct, on the other complement.


This was done to support its commitment to addressing hand, has a more directive aspect as it is quite detailed in outlining or ethical issues and to be proactive.

prohibiting certain behavior.

The Ethics Policy is fundamentally value- based, whereas the Code of Conduct is rule-based.

The MDDA incorporates the Agency’s Ethics Policy and Code of Conduct, giving instructions for all employees to always act morally and with integrity.
Additionally, it gives staff members clear guidelines 12.
HEALTH, SAFETY AND ENVIRONMENTAL ISSUES The MDDA employs a well-ness programmme with regular desktop a compliance letter of good standing for the Compensation for wellness awareness material that is accessible to all employees in an Occupational Injuries and Diseases Act in accordance with the Agency’s effort to promote and maintain a stable, healthy, safe, and productive corporate responsibility to comply with laws and regulations and its work environment.
The organisation has a policy that doesn’t unfairly intention to provide its employees with a safe and secure working discriminate against people who decide to smoke.

However, it has been environment.

declared “smoke-free” in all common working areas.


The MDDA policy makes it compulsory to belong to a medical aid and Corporation (SABC), which is regarded as a National Key Point, assisted currently administers its medical aid through the Discovery Medical Aid MDDA in bolstering the safety of MDDA Employees.
Controlled access Scheme where all employees, with the exception of those employees to the Agency’s work areas and general premises are maintained in who are and wish to remain members of an alternative scheme of accordance with pertinent security and safety procedures to protect which their spouses or partners is already a member.

property, possessions, and individuals.


The moving to the new premise at the South African Broadcasting The Agency appointed new members to the Occupational Health and Safety Committee, made sure the Occupational Health and Safety Act and regulations are displayed on all of its notice boards, and obtained 13.

COMPANY /BOARD SECRETARY Board Members have unrestricted access to the advice and services of the Company Secretary as well as the Secretariat Unit.
The Company Secretary together, with other assurance functions, monitors MDDA’s compliance with the requirements of the PFMA, National Treasury Regulations, the MDDA Act and other relevant and applicable legislation.

The Company Secretary assists the Board Chairperson to conduct an annual Board evaluation process.

66 MDDA ANNUAL REPORT 11.

CODE OF CONDUCT 11.

CODE OF CONDUCT 14.

SOCIAL RESPONSIBILITY 14.


The Media Development and Diversity Agency (MDDA) has a crucial SOCIAL RESPONSIBILITY Fostering Media Literacy and Critical Thinking: social responsibility to promote media diversity, inclusivity, and access • MDDA’s social responsibility includes promoting media literacy to information.
This social responsibility is realised through creating an among citizens to enable them to critically analyse media inclusive, diverse, and responsible media environment that empowers content, identify misinformation, and make informed decisions.

all South Africans to access and participate in the media landscape.

By This helps create an informed and responsible media audience.

fulfilling these responsibilities, MDDA contributes to a more democratic and informed society.
Supporting Diverse Content Creation: Promoting Media Diversity: • MDDA encourages media organisations to produce content that reflects the diversity of South Africa’s society.

This • MDDA’s primary responsibility is to foster diversity in the media includes content that represents various cultures, languages, industry by supporting and encouraging the establishment genders, and perspectives, thus promoting social cohesion and of community and small commercial media projects.

This understanding.
This understanding.

includes initiatives that represent historically disadvantaged, marginalised communities and ensure a plurality of voices in the media.

• MDDA aims to bridge the digital divide and improve media access for historically disadvantaged groups, including rural communities, women, youth, and people with disabilities.

By providing support and resources, MDDA enables these groups to participate in media creation and consumption.
• MDDA’s social responsibility extends to empowering media entrepreneurs, especially those from disadvantaged backgrounds.

By providing financial support and capacity-building programs, the agency helps aspiring media professionals to establish viable and sustainable media ventures.

67 MDDA ANNUAL REPORT 15.

AUDIT COMMITTEE REPORT AUDIT COMMITTEE REPORT 15.

We are pleased to present our report for the financial year ended 31 March 2023.
Evaluation of Financial Statements We have reviewed the annual financial statements prepared by the public entity.

Audit Committee Responsibility The Audit Committee reports that it has complied with its Auditor’s Report responsibilities arising from Public Finance Management Act and We have reviewed the public entity’s implementation plan for audit Treasury Regulation 3.1.13.
The Audit Committee also reports that it has issues raised in the prior year and we are satisfied that the matters adopted appropriate formal terms of reference as its Audit Committee have been adequately resolved.

Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities.
The Audit Committee concurs and accepts the conclusions of the external auditor on the annual financial statements and is of the The Effectiveness of Internal Control opinion that the audited annual financial statements be accepted and Our review of the findings of the Internal Audit work, which was based read together with the report of the auditor.
________________ Mr Fortune Mkhabela Chairperson of the Audit Committee Media Development and Diversity Agency on the risk assessments conducted in the public entity revealed certain weaknesses, which were then raised with the public entity.

The following internal audit work was completed during the year under review: • Annual Financial Statement 2022/23.

• Audit of Performance Audit-( all quarters) (Q1, Q2, Q3 and Q4).

• HR Performance agreement and appraisal.

• HR Leave Management audit.


• Risk management audit.

• ITC audit.

• POPI Act.

• SCM audit.

• Financial Management-Audit of Travel and subsistence process.

• Audit Improvement plan 2022/23 and internal audits follow up (all quarters) (Q1, Q2, Q3 and Q4).

• Grant and seeding audits.

• APP review 1st draft 2022/23.

The following were areas of concern: • The accuracy, validity, and completeness of financial statements.

• Compliance with regulations, policies and procedures.
In-Year Management and Monthly/Quarterly Report The public entity has submitted monthly and quarterly reports to the Executive Authority.

The Audit and Risk committee has: • reviewed and discussed the audited financial statements to be included in the annual report with the Auditor-General.

• reviewed the Auditor-General of South Africa’s management report and management response thereto.

• reviewed changes in the accounting policies and practices.
• reviewed the entities compliance with legal regulatory provisions; and 68 MDDA ANNUAL REPORT 15.

AUDIT COMMITTEE REPORT 16.

B-BBEE COMPLIANCE PERFORMANCE INFORMATION The following table has been completed in accordance with the compliance to the BBBEE requirements of the BBBEE Act of 2013 and as determined 16. by the Department of Trade, Industry and Competition.
B-BBEE COMPLIANCE PERFORMANCE INFORMATION Has the Department / Public Entity applied any relevant Code of Good Practice (B-BBEE Certificate Levels 1 – 8) with regards to the following: Criteria Response Yes / No Discussion (include a discussion on your response and indicate what measures have been taken to comply) Determining qualification criteria for the issuing of licences, N/A The MDDA does not issues licences or concessions or other authorisations in respect of economic concessions activity in terms of any law?
Developing and implementing a preferential procurement policy?

Yes The MDDA is implementing the Preferential Policy Framework Act, 2000 (Act 5 of 2000), Preferential Procurement Regulations of 2017, and National Treasury Instruction and Practice Notes Determining qualification criteria for the sale of state-owned N/A There are no SOEs under the MDDA control enterprises?

Developing criteria for entering into partnerships with the private N/A The MDDA does not enter into partnerships sector?
with the private sector Determining criteria for the awarding of incentives, grants and N/A The MDDA does not offer incentives, grants investment schemes in support of Broad Based Black Economic and investment schemes Empowerment?
69 MDDA ANNUAL REPORT PART D: INTRODUCTION PART D: HUMAN RESOURCE OVERSIGHT STATISTICS 70 MDDA ANNUAL REPORT PART D: INTRODUCTION INTRODUCTION The key thrust of the MDDA Human Resources Management strategic The Employee Health and Wellness Programme (EHWP) was relaunched imperative is to continue to build capacity and create an environment to provide programmes/interventions that can develop and maintain that enables the MDDA to achieve its mandate as specified in the a healthy, dedicated responsive and productive employees within MDDA Act of 2002.
MDDA’s Human Resources Department functions the MDDA.

The EHWP Committee was established to assist with the as a crucial business partner within the company, maximizing its assessment, planning and implementation of all activities associated contribution to and alignment with the company’s strategic goals.

To with EHWP.
To with EHWP.

Two (2) wellness days were implemented successfully ensure the efficient and successful management of MDDA’s personnel, for the financial year under review coupled with bi-monthly desktop the department provides a spectrum of professional services, expertise, awareness services, newsletters, EAP support, counselling services, and guidance, all of which are underpinned by sound risk management and other relevant interventions and initiatives offered through the and statutory compliance.
appointed employee wellness service provider ICAS.

OUR STRATEGIC THRUSTS The Human Resources Department’s primary responsibility in delivering MDDA promotes employee engagements and created a platform with the aim of bringing employees together and boosting staff morale operational excellence is to assist the organisation in accomplishing called #StaffConnect.
HR policies were communicated and workshoped the HR-specific objectives committed in MDDA’s Strategic Plan to all employees including the newly introduced Hybrid Working 2020 -2024 by planning, executing, and reviewing Human Resources Policy.

Consequence management to address all matters pertaining projects.

The MDDA has six (6) strategic thrusts to build organisational to disciplinary, and dispute resolution, were implemented accordingly.
competences and leadership capacity for long-term growth: • Organisational culture, and change management.

The MDDA prioritises employee development as it contributes to • Recruitment, retention, and succession planning.

improved employee performance and organisational effectiveness.

• Employment equity – transformation and inclusivity.

Employees continued to receive bursaries, short-term training • Training and development.

• Performance management.

• Health and wellness.


initiatives and professional membership.

This is to ensure capacity building, empowerment and development of skills to increase productivity and enable staff to be able to navigate the demands of the ever-changing workplace dynamics and media industry.
Eight (8) The Board approved the MDDA structure with one (1) additional position training interventions were delivered and attended by one hundred and which increased the total number of funded positions to forty-four (44) forty employees (140) namely, Ethics in the Public Service training (42), in the structure.
Although the MDDA experienced the resignation of five Project Management (28), Diversity and Disability in the workplace (31), (5) employees and three (3) of those at the executive level during the Theory of Change (2), GRAP and Caseware (6), Root course analysis (1), financial year under review, significant improvement was noted when CIA learning system infrastructure (3), as well as strategic conversations the MDDA filled most of its critical positions namely, HR & Corporate on governance (1).
Fourteen (14) bursaries awarded, and twelve (12) Services Manager, HR Officer, Legal Officer, Project Manager: Print and professional memberships for five (5) employees paid.

Digital, Accountant, and Digital Media Coordinator.

Four (4) temporary MDDA entered into a memorandum of agreement with MICT SETA and staff members were employed during the period under review namely, was granted funding for the MDDA to host eight (8) learners for a Broadcast Consultant, Supply Chain Officer, X2 General Workers.
duration of 12 months.

The MDDA also hosted one (1) internship learner living with a disability funded by iGraduate.

MDDA promotes a performance management culture as a strategic objective and tool of the organisation and is aimed at identifying talented employees and encouraging a culture of learning.

The MDDA completed timeously its performance contracting process for the financial year 2022/23.

The Board approved a new performance management policy in October 2022.
The HR department ensured that the 2021/22 performance incentives were paid timeously to all qualifying employees.

71 MDDA ANNUAL REPORT INTRODUCTION The highlights for the year under review were as follows; • The approval and sign off of the HR Policy and procedure manual and Hybrid Working Policy by Board and communicated to staff in the form of desktop sensitization, and communication of at least one (1) policy per week.

• No grievances recorded for the year.


• Successful implementation of Disability and Diversity Workshop which touched on the white paper on the rights of persons with disabilities; reasonable accommodation & universal access plan; national strategic framework on awareness-raising campaigns.

• 89% of staff finished their Ethics in the Public service training through the National School of Government.
• Employee Wellness Day to equip MDDA employees with financial literacy, change management, management of stress and health in general; and • Finalisation of skills audit project • Signed MOUs with MICT SETA and National School of Government • Successful implementation of the MDDA Internship Programme within the MICT SETA timeframes, • Successful launch and implementation of #StaffConnect and #MyWellbeing programmes.
• Filling of critical positions with right skills and the finalisation of the CFO position timeously.

• Timeous implementation of performance bonuses for 2021/22 and annual salary increases for 2022/23.

• HR Records Management Framework approved.

Unachieved deliverables due to various reasons are the culture and climate survey and the organisational structure review design project which are prioritised for the 2023/24 financial year.
72 MDDA ANNUAL REPORT INTRODUCTION HUMAN RESOURCE OVERSIGHT STATISTICS HUMAN RESOURCE OVERSIGHT STATISTICS There was a total permanent staff complement of thirty-seven (37) at the end of the period under review, out of fourty-four (44) approved positions.

This equates to a vacancy rate of 16%.

There were five (5) terminations of permanent employees, one (1) was a dismissal while the other four (4) were resignations.

The Agency appointed two (2) female managers during the FY 2022/23.
The Agency appointed nine (9) interns and four (4) employees on short term contracts during the year under review.

2.1 Personnel related expenditure Personnel Cost by programme/ activity/ objective Employees are remunerated on total cost to the company remuneration model in order to increase the flexibility of their salary packages, make them more competitive in the market, and compensate them fairly for the services rendered.
The MDDA offers fringe benefits such as a provident fund administered by Liberty and, medical aid administered by Discovery included in the total cost to the company.

Additionally, qualified employees also received, a cell phone allowance and study assistance.

It is a condition of employment for permanent employees at the MDDA to join both the medical aid plan and provident fund.
The total staff complement reflected here includes employees who left the Agency within the financial year as well as the nine (9) interns.
Programme/activity/objective Total Personnel No of Employees Average Average Expenditure for Expenditure personnel cost personnel cost the entity per employee per employee Communications & Strategy R151 847 183,00 R2 400 444,63 Company Secretary R151 847 183,00 R2 119 383,74 4 2 R600 111,16 2% R1 059 691,87 1% Finance R151 847 183,00 R6 412 164,60 13 R493 243,43 Human Resources & Corporate Affairs R151 847 183,00 R2 605 663,10 Internal Audit Legal Services OCEO Projects R151 847 183,00 R1 918 394,72 R151 847 183,00 R1 966 766,71 R151 847 183,00 R2 729 676,14 R151 847 183,00 R10 699 261,03 Research, Training, Monitoring & Evaluation R151 847 183,00 R6 235 169,33 6 3 2 2 15 9 Grand Total R37 086 924,00 56 4% 2% 1% 1% R434 277,18 R639 464,91 R983 383,36 R1 364 838,07 2% R713 284,07 R692 796,59 7% 4% 73 MDDA ANNUAL REPORT HUMAN RESOURCE OVERSIGHT STATISTICS Personnel cost by salary band Level No of Employees Personnel Expenditure % of personnel exp.
to Average personnel cost total personnel cost per employee Top Management Senior Management Professional Skilled Semi-Skilled Unskilled Grand Total 4 11 21 8 10 2 56 Performance Rewards R6 633 368,33 R13 945 017,20 R11 981 779,58 R3 883 944,36 R612 991,77 R29 822,76 R37 086 924,00 18% 38% 32% 10% 2% 0% R1 658 342,08 R1 267 728,84 R570 560,93 R485 493,05 R61 299,18 R14 911,38 R662 266,50 Programme//activity/objective Performance rewards Personnel Expenditure Top Management Senior Management Professional qualified Skilled Technical Semi-skilled Unskilled TOTAL Training Costs R265 999,08 R475 313,67 R733 591,55 R187 100,13 R24 365,07 0 R1 686 369,50 R151 847 183,00 R151 847 183,00 R151 847 183,00 R151 847 183,00 R151 847 183,00 R0 00 Programme//activity/ Personnel Training Training Expenditure No.
of employees Avg training cost objective Expenditure (R’000) Expenditure as a % of Personnel trained per employee Professional Membership R37 086 92 Training & Development R37 086 92 R95 209,00 R262 549,39 Cost.
39% 14% 5 14 R19 041,80 R18 753,53 74 MDDA ANNUAL REPORT HUMAN RESOURCE OVERSIGHT STATISTICS HUMAN RESOURCE OVERSIGHT STATISTICS Employment and vacancies Although progress has been made in filling the critical positions during the year under review, the organisation experienced a high staff turnover in a very short period of time.

One (1) qualifying female internal employee was appointed in the management position.
Programme/activity/ 2021/2022 2021/2022 Approved 2021/2022 2021/2022 Vacancies % of vacancies objective Posts No.

of Employees No.

of Employees Top Management Senior Management 4 9 Professional qualified 20 Skilled Semi-skilled Unskilled Total 7 1 41 4 10 22 7 1 44 1 9 19 7 1 37 3 1 3 0 0 7 7% 2% 7% 0 0 0 16% Programme/activity/ 2022/2023 (April) 2022/2023 Approved 2022/2023 (March) 2022/2023 Vacancies % of vacancies objective Posts No.

of Employees No.
of Employees Office of the CEO Projects Research, Training, Monitoring & Evaluation Company Secretary Communication & Strategy Finance HR & Corporate Services Risk Legal Services Internal Audit 2 13 7 2 3 7 3 0 2 2 2 14 7 2 3 7 3 1 3 2 Total MDDA ANNUAL REPORT HUMAN RESOURCE OVERSIGHT STATISTICS Table: Employment and Vacancies as per Occupational Levels Employment changes Eight (8) employees were terminated during the period under review which led to a turnover rate of 17,9% Salary Band Employment at beginning Appointments Terminations Employment at end of of period the period Top Management Senior Management Professional qualified Skilled Semi-skilled Unskilled Total 4 8 18 7 1 0 38 Table: Employment changes Reasons for staff leaving 0 0 6 0 0 0 6 3 0 2 0 0 0 5 1 8 20 7 1 0 37 Four (4) employees left the employ of MDDA for various reasons and one (1) dismissal.
Reason Death Resignation Dismissal Retirement Ill health Expiry of contract Other Total Number % of total no.
of staff leaving 0 4 1 0 0 0 0 5 0% 11% 3% 0% 0% 0% 0% 14% Table: Reasons for staff leaving Labour Relations: Misconduct and disciplinary action Nature of disciplinary Action Number 0 0 0 1 1 Verbal Warning Written Warning Final Written warning Dismissal Total 76 MDDA ANNUAL REPORT HUMAN RESOURCE OVERSIGHT STATISTICS HUMAN RESOURCE OVERSIGHT STATISTICS Equity Target and Employment Equity Status The MDDA is in the process of implementing its three-year Employment Equity (EE) Plan (2022-2023) that emanates from the provisions of the Employment Equity Act, 1998, to support the creation of an enabling environment, to ensure equitable demographic representation across all occupational levels and categories and to manage inequalities within the organisation.
The employment equity statistics are based on all employees employed from 01 April 2022 to 31 March 2023.

During the reporting period, 100% of our permanent employees were black (African and Indian), which is recorded as an overachievement in this category although there has been an underrepresentation on other races to make the workforce reflective of diversity and in line with the Employment Equity Plan.
The Agency achieved its female representation target of 60% and is sitting at 61% for the period under review.

The Agency’s target for people with disabilities for the 2022/2023 financial year was exceeded by 1% from 2% with an achieved target of 3%.

The Agency embarked on a campaign for employees to declare their status on Gender, Race and People with Disability.

This comes after the workshop on diversity and disability.
An intern with disability was appointed in quest to pave way in achieving the 7% target by March 2024.
LEVELS MALE African Coloured Indian White Current Target Current Target Current Target Current Target Top Management Senior Management Professional qualified Skilled Semi-skilled Unskilled TOTAL LEVELS 2 4 9 3 0 0 1 4 7 3 0 0 15 FEMALE African Coloured Indian White Current Target Current Target Current Target Current Target Top Management Senior Management Professional qualified Skilled Semi-skilled Unskilled TOTAL 0 6 11 4 1 0 22 2 6 11 77 MDDA ANNUAL REPORT HUMAN RESOURCE OVERSIGHT STATISTICS Levels Top Management Senior Management Professional qualified Skilled Semi-skilled Unskilled TOTAL Disabled Staff Male Current 0 0 0 1 0 0 1 Target 0 0 0 1 0 0 1 Female Current Target 0 0 0 0 0 0 0 0 0 0 0 0 0 0 78 MDDA ANNUAL REPORT HUMAN RESOURCE OVERSIGHT STATISTICS PART E: PART E: PFMA COMPLIANCE REPORT 79 MDDA ANNUAL REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE AND MATERIAL LOSSES 1.1 Irregular expenditure a. Reconciliation of irregular expenditure Description Opening balance Add: Irregular expenditure confirmed Less: Irregular expenditure condoned Less: Irregular expenditure not condoned and removed Less: Irregular expenditure recoverable Less: Irregular expenditure not recovered and written off Closing balance Reconciling notes Description Irregular expenditure that was under assessment in 2022/2023 Irregular expenditure that relates to 2021/22 and identified in 2022/23 Irregular expenditure for the current year Total 2022/2023 R0 R7 081 687 (R7 081 687) R0 R0 R0 R0 2022/2023 R7 081 687 R0 R7 081 687 b.
Details of current and previous year irregular expenditure (under assessment, determination, and investigation) Description1 Irregular expenditure under assessment Irregular expenditure under determination Irregular expenditure under investigation Total2 Description Irregular expenditure condoned Total 2022/2023 R0 R5 579 834 R0 R5 579 834 2022/2023 R7 081 687 R7 081 687 2021/2022 49 055 159 R0 R0 R0 R0 (49 055 159) R0 2021/2022 R7 081 687 R7 081 687 2021/2022 R0 R0 R0 R0 2021/2022 R0 R0 80 MDDA ANNUAL REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT Description 2022/2023 2021/2022 Irregular expenditure NOT condoned and removed Total R0 R0 R0 R0 e. Details of current and previous year irregular expenditure recovered Description Irregular expenditure recovered Total f. Details of current and previous year irregular expenditure written off (irrecoverable) Description Irregular expenditure written off Total 2022/2023 2021/2022 R0 R0 2022/2023 R0 R0 R0 R0 2021/2022 R49 055 159 R49 055 159 Additional disclosure relating to Inter-Institutional Arrangements g. Details of non-compliance cases where an institution is involved in an inter-institutional arrangement (where such institution is not responsible for the non-compliance) Description Not Applicable Total h. Details of non-compliance cases where an institution is involved in an inter-institutional arrangement (where such institution is responsible for the non-compliance) Description Not Applicable Total 2022/2023 2021/2022 1.
Details of current and previous year disciplinary or criminal steps taken as a result of irregular expenditure Disciplinary steps taken None 81 MDDA ANNUAL REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT 1.2 Fruitless and wasteful expenditure a. Reconciliation of fruitless and wasteful expenditure Description Opening balance Add: Fruitless and wasteful expenditure confirmed Less: Fruitless and wasteful expenditure written off Less: Fruitless and wasteful expenditure recoverable Closing balance Reconciling notes Description Fruitless and wasteful expenditure that was under assessment in 2022/23 2022/2023 R52 484 R29 285 R0 R0 R81 769 2022/2023 R29 285 2021/2022 R52 484 R0 R0 R0 R52 484 2021/2022 Fruitless and wasteful expenditure that relates to 2022/23 and identified R0 in 2022/23 Fruitless and wasteful expenditure for the current year Total R29 285 R29 285 R0 b.
Details of current and previous year fruitless and wasteful expenditure (under assessment, determination, and investigation) Description3 2022/2023 2021/2022 Fruitless and wasteful expenditure under assessment Fruitless and wasteful expenditure under determination Fruitless and wasteful expenditure under investigation Total4 R0 R0 R0 R0 R0 R0 R0 R0 82 MDDA ANNUAL REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT c. Details of current and previous year fruitless and wasteful expenditure recovered Description 2022/2023 2021/2022 Fruitless and wasteful expenditure recovered Total R0 R0 R0 R0 d. Details of current and previous year fruitless and wasteful expenditure not recovered and written off Description Fruitless and wasteful expenditure written off Total 2022/2023 2021/2022 R0 R0 R0 R0 e. Details of current and previous year disciplinary or criminal steps taken as a result of fruitless and wasteful expenditure Disciplinary steps taken None 1.3 Additional disclosure relating to material losses in terms of PFMA Section 55(2)(b)(i) &(iii)) a.
Details of current and previous year material losses through criminal conduct Material losses through criminal conduct 2022/2023 2021/2022 Theft Other material losses Less: Recovered Less: Not recovered and written off Total b.
Details of other material losses Nature of other material losses (Group major categories, but list material items) Total R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 2022/2023 2021/2022 R0 R0 R0 R0 83 MDDA ANNUAL REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT c. Other material losses recovered Nature of losses (Group major categories, but list material items) Total Other material losses written off Nature of losses (Group major categories, but list material items) Total 2.
LATE AND/OR NON-PAYMENT OF SUPPLIERS Description Valid invoices received Invoices paid within 30 days or agreed period Invoices paid after 30 days or agreed period Invoices older than 30 days or agreed period (unpaid and without dispute) Invoices older than 30 days or agreed period (unpaid and in dispute) 3.
SUPPLY CHAIN MANAGEMENT 3.1 Procurement by other means 2022/2023 2021/2022 R0 R0 R0 R0 2022/2023 2021/2022 R0 R0 R0 R0 Number of invoices Consolidated Value 149 148 1 0 0 R 16 228 339.96 R 16 194 874.96 R 33 465 0 0 Value of contract 80 309.10 13 747.00 3 178.00 2 812.84 Project description Name of supplier Type of procurement by Contract number other means CaseWare License Adapt IT License Renewal N/A-Once off service Professional Membership Renewal SAICA Professional membership N/A- Once off service Public Venue Services David Kruper Local Municipality Public Venue Services N/A -Once off service Laptop Acer Africa (Pty) Ltd Laptop Repairs N/A- Once off service Professional Membership Association of certified fraud Professional membership N/A-Once off service 10 730.00 examiners Community Broadcasting Services Face TV Community Broadcasting N/A-Once off service 56 000.00 Services Internal Audit Services The Institute of Internal Auditors Internal Audit Services N/A-Once off service Subscription fees Membership fees MultiChoice Subscription fees N/A-Once off service National Association of Membership fees N/A-Once off service Broadcasters Office space leasing SABC Office space leasing OB Van for Broadcasting Mohodi Community Radio OB Van for Broadcasting N/A-Once off service Adapt Training Monate Catering SABC CaseWare Training N/A-Once off service Catering Lease N/A-Once off service CaseWare Training Catering Lease Total 84 35 816.00 8 400.00 59 673.75 10 664 461.16 14 000.00 12 450.00 22 000.00 10 983 577 MDDA ANNUAL REPORT PFMA COMPLIANCE REPORT PFMA COMPLIANCE REPORT 3.2 Contract variations and expansions Project Name of supplier Contract Contract number Original contract Value of previous Value of current description Total modification type (Expansion or Variation) value contract contract expansion/s or expansion or variation/s (if applicable) variation R0 85 MDDA ANNUAL REPORT PART F: PART F: ENVIRONMENTAL LANDSCAPE AND FUNDING 86 MDDA ANNUAL REPORT PART F: ENVIRONMENTAL LANDSCAPE AND FUNDING ENVIRONMENTAL LANDSCAPE AND FUNDING GROWTH AND DEVELOPMENT OF LOCAL MEDIA The MDDA Act No.
14 of 2002 established the MDDA to help create an enabling environment for media development and diversity that is conducive to public discourse and which reflects the needs and aspirations of all South Africans.
Despite the fact that transformation of the media remains a challenge for South African democracy, the media landscape has changed considerably since 2004, with the MDDA being the largest contributor to enabling access to, control of, and management of the sector by historically disadvantaged individuals.
More than ever before, all the languages of South Africa are being actively used to communicate and engage with communities, with the community broadcast sector far outstripping their mainstream counterparts in this regard.

The MDDA has invested significantly in the purchase of world-class radio equipment, and to further enable quality productions, has commenced from 2019/2020, including an allocation for content production in the grant funding package.
Similarly, the community and small commercial print sector has grown significantly in recent years with South Africa now boasting more than 200 small publishers.

FUNDING OF THE AGENCY Section 15 of the MDDA Act provides for funding of the Agency consisting of: • Money appropriated by Parliament; • Money received in terms of agreements contemplated in section 21; • Domestic and foreign grants; • Interest derived from any investments; or • Money lawfully accruing from any other source.
The money referred to above must be utilised to: • Fund projects and activities connected therewith, including project evaluation, feasibility studies, needs analyses, research, and training; and • Defray expenses, including expenses regarding remuneration, allowances, pensions, and other service benefits referred to in section 12 (6) of the Act, incurred by the Agency in the performance of its functions under the Act as long as such expenses do not exceed the prescribed percentage of the funds referred to above.
Funding of the Agency Description 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 R R R R R R R Total budget from GCIS 23 814 000 30 005 000 30 669 000 31 795 000 32 279 000 35 167 623 56 038 630 Broadcast Income 43 661 000 48 256 912 51 743 849 56 313 833 60 915 177 64 641 480 64 988 360 TOTAL 67 475 000 78 261 912 82 412 849 88 108 833 93 194 177 125 136 544 116 641 686 Part of the income from GCIS is conditional grant for the Economic Development Fund (EDF).
Revenue from EDF is recognised when conditions of the grant are met.

A total of R 38 645 889 has been received and disbursement to beneficiaries started in the 2021/2022 financial year and will be finalised in the 2023/2024 financial year.

Broadcast funders - ICASA License holders have the option to pay the USAF levies to ICASA or MDDA, levies paid to MDDA are categorised as revenue.

A total of 71% of the broadcast contributions are made by Multichoice.
Multichoice has committed to contribute R45 million per year over the MTEF.

Multichoice has been contributing above the committed funds in the prior financial years.

The broadcast contribution is projected to increase by 2% over MTEF as a reflection of expected industry growth based on historical trends.Grants income – MDDA receives an unconditional grant allocation through Government Communication Information Systems (GCIS), the grant is used to fund operational expenditure.
National Treasury has introduced spending curtailing measures and reduced MDDA allocations.

Government Grants will only increase by an average of 5% over the MTEF, the increase is below the inflation levels which warranted a reduction on expenditure.
87 MDDA ANNUAL REPORT ENVIRONMENTAL LANDSCAPE AND FUNDING Broadcast Partners • HEART FM • RADIO IGAGASI • YOU FM • DIGITAL • YIRED YFM • ALGOA FM • PRIMEDIA BROAD • E-TV • MULTICHOICE • EAST COAST RADIO • JACARANDA FM • SABC • CAPRICORN CAP • VUMA 103 FM • KAYA FM • SMI2023 Foreign Grants No foreign grants were received in the year under review.
Rollover For the period under review, the MDDA has requested R9 715 000 rollover of funds in respect of committed funds to be disbursed to project beneficiaries and service providers at a future date.

Funding Cycles The MDDA was funded by Government through the Department of Communications up to 2019 and now through the GCIS which will report to the Presidency.

The Agency is also funded by broadcast media companies as per funding agreements signed between the MDDA and these partners.
The funding cycle from Government is in line with the Agency’s financial year, which is April to March.

However, the funding cycles for broadcast funds is November to November.

Due to the different cycles of funding, the MDDA will always, at the financial year end, reflect funds from broadcast funders that still need to be approved.
Regulatory and Contractual Requirements MDDA regulations state that: • At least 60% of grant funds should go to community media projects • At least 25% to small commercial projects • 5% to research projects.
88 MDDA ANNUAL REPORT ENVIRONMENTAL LANDSCAPE AND FUNDING PART G: PART G: FINANCIAL INFORMATION 89 MDDA ANNUAL REPORT Report of the Auditor-General to Parliament on Media Development and Diversity Agency Report of the auditor-general to Parliament on Media Development and Diversity Agency Report of the Auditor-General to Parliament on Media Development and Diversity Agency Report of the Auditor-General to Parliament on Media Development and Diversity Agency Report on the audit of the financial statements Qualified opinion 1.
I have audited the financial statements of the Media Development and Diversity Agency (MDDA) set out on pages 97 to 142 which comprise the statement of financial position as at 31 March 2023, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as notes to the financial statements, including a summary of significant accounting policies.

2.
In my opinion, except for the effects and possible effects of the matters described in the basis for qualified opinion section of the auditor’s report, the financial statements present fairly, in all material respects, the financial position of the MDDA as at 31 March 2023, and its financial performance and cash flows for the year then ended in accordance with the Standard of Generally Recognised Accounting Practice (Standards of GRAP) and the requirements of the Public Finance Management Act 1 of 1999 (PFMA).
Basis for qualified opinion Administration expenses 3.

I was unable to obtain sufficient appropriate audit evidence for administration expenses (purchase returns) in the current year, as the public entity did not have adequate systems and supporting documentation.

I was unable to confirm the administrative expenses (purchase returns) by alternative means.
Consequently, I was unable to determine whether any adjustments were necessary to the administration expenses stated at R17 185 520 in note 19 to the annual financial statements.

Cash flow statement 4.

Grants receipts were incorrectly calculated as it did not include cash movements from grants and subsidies, which constitutes a departure from Standards of GRAP 2, Cash Flow Statement.

Consequently, grant receipts was understated by R16 571 868 in the cash flow statement.

5.
5.

Supplier payments were incorrectly calculated as it did not include the cash movements from the payables from exchange transactions, which constitutes a departure from Standards of GRAP 2, Cash Flow Statement.

Consequently, supplier payments were overstated by R9 481 840 in the cash flow statement.

Commitments 6.

The public entity did not recognise all items of operational commitments.

Write-backs and operational commitments were identified that could not be traced to the commitment register.
This resulted in operational commitments being understated by R8 118 552.

Context for opinion 7.

I conducted my audit in accordance with the International Standards on Auditing (ISAs).

My responsibilities under those standards are further described in the responsibilities of the auditor-general for the audit of the financial statements section of my report.

8.
8.

I am independent of the public entity in accordance with the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards) (IESBA code) as well as other ethical requirements that are relevant to my audit in South Africa.

I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

9.
9.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion.

Emphasis of matter 10.

I draw attention to the matter below.

My opinion is not modified in respect of this matter.
90 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Report of the auditor-general to Parliament on Media Development and Diversity Agency Report of the Auditor-General to Parliament on Media Development and Diversity Agency Report of the Auditor-General to Parliament on Media Development and Diversity Agency (Cont..) Restatement of corresponding figures 11.
As disclosed in note 28 to the financial statements, the corresponding figures for 31 March 2022 were restated as a result of an error in the financial statements of the public entity at, and for the year ended 31 March 2023.

Other matter 12.

I draw attention to the matter below.

My opinion is not modified in respect of this matter.

PFMA Compliance and Reporting Framework 13.

On 23 December 2022 National Treasury issued Instruction Note No.
4: PFMA Compliance and Reporting Framework of 2022-23 in terms of section 76(1)(b), (e) and (f), 2(e) and (4)(a) and (c) of the PFMA, which came into effect on 3 January 2023.

The PFMA Compliance and Reporting Framework also addresses the disclosure of unauthorised expenditure, irregular expenditure and fruitless and wasteful expenditure.
Among the effects of this framework is that irregular and fruitless and wasteful expenditure incurred in previous financial years and not addressed is no longer disclosed in the disclosure notes of the annual financial statements, only the current year and prior year figures are disclosed in note 26 and 27 to the financial statements.

The movements in respect of irregular expenditure and fruitless and wasteful expenditure are no longer disclosed in the notes to the annual financial statements of MDDA.
The disclosure of these movements (e.g.

condoned, recoverable, removed, written off, under assessment, under determination and under investigation) are now required to be included as part of other information in the annual report of the auditees.

I do not express an opinion on the disclosure of irregular expenditure and fruitless and wasteful expenditure in the annual report.

Responsibilities of the accounting authority for the financial statements 14.
The accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with the Standards of GRAP and the requirements of the PFMA; and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

15.
15.

In preparing the financial statements, the accounting authority is responsible for assessing the public entity’s ability to continue as a going concern; disclosing, as applicable, matters relating to going concern; and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the public entity or to cease operations, or has no realistic alternative but to do so.
Responsibilities of the auditor-general for the audit of the financial statements 16.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; and to issue an auditor’s report that includes my opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

17.

A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

Report on the audit of the annual performance report 18.
In accordance with the Public Audit Act 25 of 2004 (PAA) and the general notice issued in terms thereof, I must audit and report on the usefulness and reliability of the reported performance against predetermined objectives for selected programmes presented in the annual performance report.

The accounting authority is responsible for the preparation of the annual performance report.

19.
19.

I selected the following programmes presented in the annual performance report for the year ended 31 March 2023 for auditing.

I selected programmes that measures the public entity’s performance on its primary mandated functions and that are of significant national, community or public interest.
91 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Report of the Auditor-General to Parliament on Media Development and Diversity Agency (Cont..) Programme Page numbers Purpose Grant and seed funding 30 - 31 The programme promotes media development and diversity through financial and non-financial support for community broadcasting as well as community and small commercial print projects Partnerships, public awareness, and advocacy 32 This programme seeks to position the MDDA as a leading influencer and authoritative voice in the community and small commercial media, by playing a key role in the national dialogue on the sector, through implementation of strategic partnerships to carry out media development and diversity interventions Capacity building and sector development 33 One of the objectives of the agency outlined in the Media Development and Diversity Agency Act No.14 of 2002 (MDDA Act) is to encourage the development of human resources, training and capacity building within the media industry, especially amongst historically disadvantaged groups.
In response to this, the agency has developed capacity building programmers, which aim to provide community and small commercial media with necessary skills needed for effective performance in day- to-day work 20.

I evaluated the reported performance information for the selected programmes against the criteria developed from the performance management and reporting framework, as defined in the general notice.
When an annual performance report is prepared using these criteria, it provides useful and reliable information and insights to users on the public entity’s planning and delivery on its mandate and objectives.

21.
I performed procedures to test whether: • the indicators used for planning and reporting on performance can be linked directly to the public entity’s mandate and the achievement of its planned objectives • the indicators are well defined and verifiable to ensure that they are easy to understand and apply consistently and that I can confirm the methods and processes to be used for measuring achievements • the targets can be linked directly to the achievement of the indicators and are specific, time bound and measurable to ensure that it is easy to understand what should be delivered and by when, the required level of performance as well as how performance will be evaluated • the indicators and targets reported on in the annual performance report are the same as what was committed to in the approved initial or revised planning documents • the reported performance information is presented in the annual performance report in the prescribed manner • there is adequate supporting evidence for the achievements reported and for the reasons provided for any over- or underachievement of targets.
22.

I performed the procedures for the purpose of reporting material findings only; and not to express an assurance opinion.

23.

I did not identify any material findings on the reported performance information of selected subject matters.

Other matter 24.

I draw attention to the matter below.

Achievement of planned targets 25.

The annual performance report includes information on reported achievements against planned targets and provides explanations for over- and underachievements.
92 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Report of the Auditor-General to Parliament on Media Development and Diversity Agency (Cont..) Material misstatements 26.

I identified material misstatements in the annual performance report submitted for auditing.

These material misstatements were in the reported performance information of programme 2: grant and seed funding.
Management subsequently corrected all the misstatements, and I did not include any material findings in this report.

Report on compliance with legislation 27.

In accordance with the PAA and the general notice issued in terms thereof, I must audit and report on compliance with applicable legislation relating to financial matters, financial management and other related matters.

The accounting authority is responsible for the public entity’s compliance with legislation.

28.
28.

I performed procedures to test compliance with selected requirements in key legislation in accordance with the findings engagement methodology of the Auditor-General of South Africa (AGSA).

This engagement is not an assurance engagement.

Accordingly, I do not express an assurance opinion or conclusion.

29.
29.

Through an established AGSA process, I selected requirements in key legislation for compliance testing that are relevant to the financial and performance management of the public entity, clear to allow consistent measurement and evaluation, while also sufficiently detailed and readily available to report in an understandable manner.

The selected legislative requirements are included in the annexure to this auditor’s report.

30.
30.

The material findings on compliance with the selected legislative requirements, presented per compliance theme, are as follows: Annual financial statements and annual report 31.

The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records, as required by section 55(1) (a) and (b) of the PFMA.
Material misstatements of cash and cash equivalents, payables from exchange transactions and government grants and subsidies identified by the auditors in the submitted financial statements were corrected, but the uncorrected material misstatements and supporting records that could not be provided resulted in the financial statements receiving a qualified opinion.

Procurement and contract management 32.


Some of the goods and services were procured without obtaining at least three written price quotations in accordance with Treasury Regulation 16A6.1, paragraph 3.3.1 of Practice Note 8 of 2007/08 and paragraph 3.2.1 of supply chain management instruction note 2 of 2021- 22.

33.
33.

Some of the goods and services of a transaction value above R1 000 000 were procured without inviting competitive bids and deviations were approved by the accounting authority but it was practical to invite competitive bids, as required by Treasury Regulation 16A6.1 and paragraph 3.3.1 of supply chain management instruction note 2 of 2021-22 and Treasury Regulation 16A6.4.

This non-compliance was identified in the procurement processes for the office lease and legal fees.

34.
34.

Some of the contracts and quotations were awarded to bidders based on preference points that were not calculated in accordance with the requirements of the PPPFA and Preferential Procurement Regulation.

Other information in the annual report 35.

The accounting authority is responsible for the other information included in the annual report, which includes the board chairperson’s report and the audit committee’s report.
The other information referred to does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported on in this auditor’s report.

36.
36.

My opinion on the financial statements, the report on the audit of the annual performance report and the report on compliance with legislation, do not cover the other information included in the annual report and I do not express an audit opinion or any form of assurance conclusion on it.
93 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Report of the Auditor-General to Parliament on Media Development and Diversity Agency (Cont..) 37.
My responsibility is to read this other information and, in doing so, consider whether it is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

Internal control deficiencies 38.


I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with applicable legislation; however, my objective was not to express any form of assurance on it.

39.

The matters reported below are limited to the significant internal control deficiencies that resulted in the basis for the qualified opinion and the material findings on compliance with legislation included in this report.

40.
40.

Leadership did not exercise oversight responsibility regarding financial and performance reporting and compliance as well as related internal controls as numerous non-compliance matters identified.

41.

Governance did not ensure that the audit committee promotes accountability and service delivery through evaluating and monitoring responses to risks and overseeing the effectiveness of the internal control environment, including financial reporting and compliance with legislation.

42.
42.

Management did not implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting as numerous material misstatements were identified that resulted in the modification of the auditor’s opinion.

43.
43.

Management did not implement controls over daily and monthly processing and reconciling of transactions as numerous material misstatements were identified that resulted in the modification of the auditor’s opinion.

44.

Management did not prepare regular, accurate and complete financial and performance reports that are supported and evidenced by reliable information as material misstatements were identified that resulted in the modification of the auditor’s opinion.

45.
45.

Management did not review and monitor compliance with applicable legislation as material non-compliance matters were identified.
Pretoria 31 July 2023 94 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Annexure to the auditor’s report Annexure to the auditor’s report Annexure to the auditor’s report The annexure includes the following: • the auditor-general’s responsibility for the audit • the selected legislative requirements for compliance testing.
Auditor-general’s responsibility for the audit Professional judgement and professional scepticism As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements and the procedures performed on reported performance information for selected programmes and on the public entity’s compliance with selected requirements in key legislation.
Financial statements In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also: • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error; design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control • obtain an understanding of internal control relevant to the audit 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 public entity’s internal control • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made • conclude on the appropriateness of the use of the going concern basis of accounting in the preparation of the financial statements.
I also conclude, based on the audit evidence obtained, whether a material uncertainty exists relating to events or conditions that may cast significant doubt on the ability of the public entity to continue as a going concern.

If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify my opinion on the financial statements.
My conclusions are based on the information available to me at the date of this auditor’s report.

However, future events or conditions may cause a public entity to cease operating as a going concern • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Communication with those charged with governance I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
I also provide the accounting authority with a statement that I have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence and, where applicable, actions taken to eliminate threats or safeguards applied Compliance with legislation – selected legislative requirements The selected legislative requirements are as follows: Legislation Sections or regulations Public Finance Management Act No.1 Section 51(1)(a)(iv); 51(1)(b)(i); 51(1)(b)(ii); 51(1)(e)(iii) of 1999 (PFMA) Section 53(4) Section 54(2)(c’); 54(2)(d) Section 55(1)(a); 55(1)(b); 55(1)(c)(i) Section 56(1); 56(2) Section 57(b) 95 MDDA ANNUAL REPORT Annexure to the auditor’s report Legislation Sections or regulations Treasury Regulations for public Treasury Regulation 8.2.1; 8.2.2 entities (TR) Treasury Regulation 16A 3.1; 16A 3.2; 16A 3.2(a); 16A 6.1; 16A6.2(a) & (b); 16A6.2(e);16A 6.3(a); 16A 6.3(a) (i); 16A 6.3(b); 16A 6.3(c); 16A 6.3(d); 16A 6.3(e); 16A 6.4; 16A 6.5; 16A 6.6; TR 16A.7.1; 16A.7.3; 16A.7.6; 16A.7.7; 16A 8.2(1); 16A 8.2(2); 16A 8.3; 16A 8.3(d); 16A 8.4; 16A9.1 16A9; 16A9.1(b)(ii); 16A9.1(c); 16A 9.1(d); 16A 9.1(e); 16A9.1(f); 16A 9.2; 16A 9.2(a)(ii); TR 16A 9.2(a)(iii) Treasury Regulation 30.1.1; 30.1.3(a); 30.1.3(b); 30.1.3(d); 30.2.1 Treasury Regulation 31.1.2(c’) Treasury Regulation 31.2.1; Treasury Regulation 31.3.3 Treasury Regulation 33.1.1; 33.1.3 Prevention and Combating of Corrupt Section 29 Activities Act No.12 of 2004 (PRECCA) Section 34(1) Construction Industry Development Section 18(1) Board Act No.38 of 2000 (CIDB) CIDB Regulations CIDB regulation 17; 25(1); 25 (5) & 25(7A) Preferential Procurement Policy Section 1(i); 2.1(a); 2.1(b); 2.1(f) Framework Act Preferential Procurement Regulations, Paragraph 4.1; 4.2 2017 Paragraph 5.1; 5.3; 5.6; 5.7 Paragraph 6.1; 6.2; 6.3; 6.5; 6.6; 6.8 Paragraph 7.1; 7.2; 7.3; 7.5; 7.6; 7.8 Paragraph 8.2; 8.5 Paragraph 9.1; 9.2 Paragraph 10.1; 10.2 Paragraph 11.1;
 11.2 Paragraph 12.1 and 12.2 Preferential Procurement Regulations Paragraph 3.1 2022 Paragraph 4.1; 4.2; 4.3; 4.4 Paragraph 5.1; 5.2; 5.3; 5.4 PFMA SCM Instruction no.
09 of Paragraph 3.1; 3.3 (b); 3.3 (c ); 3.3 (e ); 3.6 2022/2023 National Treasury Instruction No.1 of Paragraph 3.1; 4.1; 4.2 2015/16 National Treasury SCM Instruction Paragraph 4.1; 4.2 (b); 4.3; 4.4; 4.4 (a); 4.4 (c) -(d); 4.6 Note 03 2021/22 Paragraph 5.4 Paragraph 7.2; 7.6 National Treasury Instruction Note 03 Paragraph 5.5.1(vi); Paragraph 5.5.1(x); of 2019/20 National Treasury SCM Instruction Paragraph 3.1; 3.4 (a) and (b); 3.9; 6.1;6.2;6.7 Note 11 2020-21 National Treasury SCM Instruction Paragraph 3.2.1; 3.2.2; 3.2.4(a) and (b) ; 3.3.1; 3.2.2 note 2 of 2021-22 Paragraph 4.1 PFMA SCM Instruction 04 of 2022/23 Paragraph 4(1); 4(2); 4(4) Practice Note 5 of 2009/10 Paragraph 3.3 96 MDDA ANNUAL REPORT Annexure to the auditor’s report Annual Financial Statements for the year ended 31 March 2023 Legislation Sections or regulations PFMA SCM Instruction 08 of 2022/23 Paragraph 3.2 Paragraph 4.3.2; 4.3.3 National Treasury Instruction note 4 Paragraph 3.4 of 2015-16 National Treasury SCM Instruction Paragraph 6 note 4A of 2016/17 Second amendment of National Paragraph 4.8; 4.9 ; 5.1 ; 5.3 Treasury Instruction 05 of 2020/21 Erratum National Treasury Instruction Paragraph 1 5 of 202/21 Erratum National Treasury Instruction Paragraph 2 5 of 2020-21 Practice note 7 of 2009-10 Paragraph 4.1.2 Practice note 11 of 2008/9 Paragraph 3.1 NT instruction note 1 of 2021-22 Paragraph 4.1 Paragraph 3.1 (b) Annual Financial Statements for the year ended 31 March 2023 General information Country of incorporation and domicile Nature South Africa of business and principal activities Nature of business and principal activities The Media Development and Diversity Agency (MDDA) is a statutory development agency for promoting and ensuring media development and diversity in South Africa, set up as a partnership between the South African Government and major print and broadcasting companies to assist in (amongst others) developing community and small commercial media in South Africa.
It was established in 2003, in terms of the MDDA Act No.

14 of 2002 and started providing grant funding to projects on 29 January 2004.
Directors Prof. Hlengani Mathebula Ms. Brenda Leonard, Ms. Marina Clarke, Ms. Nadia Bulbulia, Ms. Martina Della-Togna, Mr. Hoosain Karjieker, Ms. Carol Mohlala Registered office SABC Auckland Park Campus GSM Building 26 Canary Road Auckland Park 2006 Bankers Auditors Secretary Absa Bank Limited South African Reserve Bank Auditor-General South Africa Yolanda Du Preez 97 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Annual Financial Statements for the year ended 31 March 2023 Annual Financial Statements for the year ended 31 March 2023 The reports and statements set out below comprise the annual financial statements presented to the parliament: 99 101 102 124 Directors’ Responsibilities and Approval Statement of Financial Position Statement of Financial Performance Statement of Changes in Net Assets Cash Flow Statement Accounting Policies Notes to the Annual Financial Statements Abbreviations used: CEO CFO DCDT EDF GCIS GRAP PFMA M & E Chief Executive Officer Chief Financial Officer Department of Communications and Digital Technologies Economic Development Fund Government Communiacations Information Systems Generally Recognised Accounting Practice Public Finance Management Act No 1 of 1999 Monitoring and Evaluation 98 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Annual Financial Statements for the year ended 31 March 2023 Directors’ Responsibilities and Approval Annual Financial Statements for the year ended 31 March 2023 Directors’ Responsibilities and Approval The directors are required by the Public Finance Management Act The directors have reviewed the entity’s cash flow forecast for the (Act 1 of 1999), to maintain adequate accounting records and are year to 31 March 2024 and, in the light of this review and the current responsible for the content and integrity of the annual financial financial position, they are satisfied that the entity has or has access statements and related financial information included in this report.
It to adequate resources to continue in operational existence for the is the responsibility of the directors to ensure that the annual financial foreseeable future.

The entity is wholly dependent on the entity for statements fairly present the state of affairs of the entity as at the end continued funding of operations.
The annual financial statements are of the financial year and the results of its operations and cash flows prepared on the basis that the entity is a going concern and that the for the period then ended.

entity has neither the intention nor the need to liquidate or curtail materially the scale of the entity.
The external auditors are engaged to express an independent opinion on the annual financial statements and was given unrestricted Although the board are primarily responsible for the financial affairs access to all financial records and related data.

The annual financial of the entity, they are supported by the entity’s external auditors.
statements have been prepared in accordance with Standards of The external auditors are responsible for independently reviewing Generally Recognised Accounting Practice (GRAP) including any and reporting on the entity’s annual financial statements.

The annual interpretations, guidelines and directives issued by the Accounting financial statements have been examined by the entity’s external Standards Board.

The annual financial statements are based upon auditors and their report is presented on page 4.
The annual financial appropriate accounting policies consistently applied and supported by statements set out on page 4, which have been prepared on the going reasonable and prudent judgements and estimates.
concern basis were approved by the board on 31 July 2023 and were signed on its behalf by: Prof. Hlengani Mathebula Board Chairperson The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the entity and place considerable importance on maintaining a strong control environment.
To enable the directors to meet these responsibilities, the board sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner.

The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk.
These controls are monitored throughout the entity and all employees are required to maintain the highest ethical standards in ensuring the entity’s business is conducted in a manner that in all reasonable circumstances is above reproach.

The focus of risk management in the entity is on identifying, assessing, managing and monitoring all known forms of risk across the entity.
While operating risk cannot be fully eliminated, the entity endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the annual financial statements.
However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit.
99 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Statement of Financial Position as at 31 March 2023 Statement of Financial Position as at 31 March 2023 Note(s) 2023 2022 Restated* Figures in Rand Assets Current Assets Receivables from non-exchange transactions Receivables from exchange transactions Cash and cash equivalents Non-Current Assets Property, plant and equipment Total Assets Liabilities Current Liabilities Operating lease liability Payables from exchange transactions Unspent conditional grants and receipts Provisions Bank overdraft Total Liabilities Net Assets Accumulated surplus Total Net Assets 100 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Statement of Financial Position as at 31 March 2023 Statement of Financial Performance Statement of Financial Performance Figures in Rand Note(s) 2023 2022 Restated* Revenue Revenue from exchange transactions Commissions received Other income Interest received Total revenue from exchange transactions Revenue from non-exchange transactions Transfer revenue Government grants & subsidies Broadcast funders contribution Total revenue from non-exchange transactions Total revenue Expenditure Employee related costs Depreciation and amortisation Impairment loss/Reversal of impairments Lease rentals on operating lease Grant cost expenditure Administration expenses Total expenditure Deficit for the year 14 15 13 12 11 17 18 20 32 16 19 2 135 181 - 5 060 060 7 195 241 56 462 416 64 988 360 121 450 782 237 958 5 500 3 398 102 3 641 560 35 229 245 64
 641 480 99 870 775 128 646 017 103 512 285 (37 086 924) (33 445 400) (534 759) (27 257) (802 127) (96 210 596) (17 185 520) (367 671) (18 209) (1 963 297) (72 168 027) (10 886 130) (151 847 183) (118 848 734) (23 201 166) (15 336 449) 101 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Statement of Changes in Net Assets Statement of Changes in Net Assets Figures in Rand Accumulated surplus / Total net assets Figures in Rand Note(s) 2023 Balance at 01 April 2021 Changes in net assets Surplus for the year Total changes Restated* Balance at 01 April 2022 Changes in net assets Surplus for the year Total changes Balance at 31 March 2023 Cash Flow Statement Cash flows from operating activities Receipts Grants Interest income Broadcast funders contribution Other income Payments Employee costs Suppliers Grant cost expenditure deficit 108 282 286 108 282 286 (15 336 449) (15 336 449) (15 336 449) 92 945 837 (23 201 166) (23 201 166) 69 744 671 (15 336 449) 92 945 837 (23 201 166) (23 201 166) 69 744 671 2022 Restated* 42 547 777 3 398 102 64 641 480 5 500 41 882 699 5 060 060 64 988 360 - 111 931 119 110 592 859 (37 086 924) (20 209 050) (33 330 818) (12 180 708) (96 210 596) (72 282 608) (153 506 570) (117 794 134) Net cash flows from operating activities 22 (41 575 451) (7 201 275) Cash flows from investing activities Purchase of property, plant and equipment Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 3 7 - (660 748) (41 575 451) (7 862 023) 133 742 814 141 604 834 92 167 363 133 742 811 The accounting policies on pages 8 to 27 and the notes on pages 28 to 47 form an integral part of the annual financial statements.
102 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Statement of Changes in Net Assets Statement of Changes in Net Assets Accounting Policies Accounting Policies Figures in Rand Note(s) 2023 2022 1.

Significant accounting polices The principal accounting policies applied in the preparation of these annual financial statements are set out below.
1.1 Basis of preparations The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999).

These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise.
They are presented in South African Rand These accounting policies are consistent with the previous period.

1.2 Presentation currency These annual financial statements are presented in South African Rand, which is the functional currency of the entity.

1.3 Going concern assumption These annual financial statements have been prepared based on the expectation that the entity will continue to operate as a going concern for at least the next 12 months.
1.4 Materiality Omissions or misstatements of items are material if they could, individually or collectively, influence the decisions or assessments of users made on the basis of the financial statements.

Materiality depends on the nature or size of the omission or misstatement judged in the surrounding circumstances.

The nature or size of the information item, or a combination of both, could be the determining factor.
Assessing whether an omission or misstatement could influence decisions of users, and so be material, requires consideration of the characteristics of those users.

The Framework for the Preparation and Presentation of Financial Statements states that users are assumed to have a reasonable knowledge of government, its activities, accounting and a willingness to study the information with reasonable diligence.
Therefore, the assessment takes into account how users with such attributes could reasonably be expected to be influenced in making and evaluating decisions.

1.5 Property, plant and equipment Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.
The cost of an item of property, plant and equipment is recognised as an asset when: • it is probable that future economic benefits or service potential associated with the item will flow to the entity; and • the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.
The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Trade discounts and rebates are deducted in arriving at the cost.
103 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.
Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost).

If the acquired item’s fair value was not determinable, it’s deemed cost is the carrying amount of the asset(s) given up.
When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

1.5 Property, plant and equipment (continued) Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it.
If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.
The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment, where the entity is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories.
Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management.

Items such as spare parts, standby equipment and servicing equipment are recognised when they meet the definition of property, plant and equipment.
Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet the recognition criteria above are included as a replacement in the cost of the item of property, plant and equipment.

Any remaining inspection costs from the previous inspection are derecognised.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.
Property, plant and equipment are depreciated on the straight-line basis over their expected useful lives to their estimated residual value.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.
The useful lives of items of property, plant and equipment have been assessed as follows: Item Furniture and fixtures Office equipment IT equipment Leasehold improvements Depreciation method Average useful life Straight-line Straight-line Straight-line Straight-line 10 - 20 years 5 - 10 years 3 - 8 years 3 - 8 years The depreciable amount of an asset is allocated on a systematic basis over its useful life.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

104 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies The depreciation method used reflects the pattern in which the asset’s future economic benefits or service potential are expected to be consumed by the entity.
The depreciation method applied to an asset is reviewed at least at each reporting date and, if there has been a significant change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset, the method is changed to reflect the changed pattern.

Such a change is accounted for as a change in an accounting estimate.
The entity assesses at each reporting date whether there is any indication that the entity expectations about the residual value and the useful life of an asset have changed since the preceding reporting date.

If any such indication exists, the entity revises the expected useful life and/or residual value accordingly.

The change is accounted for as a change in an accounting estimate.
The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised.
The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

1.5 Property, plant and equipment (continued) Assets which the entity holds for rentals to others and subsequently routinely sell as part of the ordinary course of activities, are transferred to inventories when the rentals end and the assets are available-for-sale.
Proceeds from sales of these assets are recognised as revenue.

All cash flows on these assets are included in cash flows from operating activities in the cash flow statement.

The entity separately discloses expenditure to repair and maintain property, plant and equipment in the notes to the financial statements (see note ).

The entity discloses relevant information relating to assets under construction or development, in the notes to the financial statements (see note ).
1.6 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity.
The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.
A concessionary loan is a loan granted to or received by an entity on terms that are not market related.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
Derecognition is the removal of a previously recognised financial asset or financial liability from an entity’s statement of financial position.
105 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies A derivative is a financial instrument or other contract with all three of the following characteristics: • Its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’).
• It requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors.

• It is settled at a future date.


The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, an entity shall estimate cash flows considering all contractual terms of the financial instrument (for example, prepayment, call and similar options) but shall not consider future credit losses.
The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate (see the Standard of GRAP on Revenue from Exchange Transactions), transaction costs, and all other premiums or discounts.

There is a presumption that the cash flows and the expected life of a group of similar financial instruments can be estimated reliably.
However, in those rare cases when it is not possible to reliably estimate the cash flows or the expected life of a financial instrument (or group of financial instruments), the entity shall use the contractual cash flows over the full contractual term of the financial instrument (or group of financial instruments).

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.
A financial asset is: • cash; • a residual interest of another entity; or • a contractual right to: - receive cash or another financial asset from another entity; or - exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity.
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.
A financial liability is any liability that is a contractual obligation to: • deliver cash or another financial asset to another entity; or • exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Loan commitment is a firm commitment to provide credit under pre-specified terms and conditions.

Loans payable are financial liabilities, other than short-term payables on normal credit terms.
106 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.

Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

A financial asset is past due when a counterparty has failed to make a payment when contractually due.
A residual interest is any contract that manifests an interest in the assets of an entity after deducting all of its liabilities.
A residual interest includes contributions from owners, which may be shown as: • equity instruments or similar forms of unitised capital; • a formal designation of a transfer of resources (or a class of such transfers) by the parties to the transaction as forming part of an entity’s net assets, either before the contribution occurs or at the time of the contribution; or • a formal agreement, in relation to the contribution, establishing or increasing an existing financial interest in the net assets of an entity.
Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability.

An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial instrument.
Financial instruments at amortised cost are non-derivative financial assets or non-derivative financial liabilities that have fixed or determinable payments, excluding those instruments that: • the entity designates at fair value at initial recognition; or • are held for trading.

Financial instruments at cost are investments in residual interests that do not have a quoted market price in an active market, and whose fair value cannot be reliably measured.
Financial instruments at fair value comprise financial assets or financial liabilities that are: • derivatives; • contingent consideration of an acquirer in a transfer of functions between entities not under common control to which the Standard of GRAP on Transfer of Functions Between Entities Not Under Common Control (GRAP 106) applies • combined instruments that are designated at fair value; 1.6 Financial instruments (continued) • instruments held for trading.
A financial instrument is held for trading if: - it is acquired or incurred principally for the purpose of selling or repurchasing it in the near-term; or - on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short term profit-taking; - non-derivative financial assets or financial liabilities with fixed or determinable payments that are designated at fair value at initial recognition; and - financial instruments that do not meet the definition of financial instruments at amortised cost or financial instruments at cost.
107 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Classification The entity has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto: Class Category Receivables from exchange transactions Financial asset measured at amortised cost Receivables from non-exchange transactions Financial asset measured at amortised cost Cash and cash equivalent Financial asset measured at amortised cost The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto: Class Category Payables from exchange transactions Financial liability measured at amortised cost Payables from non-exchange transactions Financial liability measured at amortised cost Initial measurement of financial assets and financial liabilities The entity measures a financial asset and financial liability initially at its fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.
The entity measures a financial asset and financial liability initially at its fair value [if subsequently measured at fair value].

The entity first assesses whether the substance of a concessionary loan is in fact a loan.

On initial recognition, the entity analyses a concessionary loan into its component parts and accounts for each component separately.
The entity accounts for that part of a concessionary loan that is: - a social benefit in accordance with the Framework for the Preparation and Presentation of Financial Statements, where it is the issuer of the loan; or - non-exchange revenue, in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers), where it is the recipient of the loan.
Subsequent measurement of financial assets and financial liabilities The entity measures all financial assets and financial liabilities after initial recognition using the following categories: - Financial instruments at fair value.

- Financial instruments at amortised cost.

- Financial instruments at cost All financial assets measured at amortised cost, or cost, are subject to an impairment review.
Reclassification The entity does not reclassify a financial instrument while it is issued or held unless it is: - combined instrument that is required to be measured at fair value; or - an investment in a residual interest that meets the requirements for reclassification.
Where the entity cannot reliably measure the fair value of an embedded derivative that has been separated from a host contract that is a financial instrument at a subsequent reporting date, it measures the combined instrument at fair value.

This requires a reclassification of the instrument from amortised cost or cost to fair value.
108 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies If fair value can no longer be measured reliably for an investment in a residual interest measured at fair value, the entity reclassifies the investment from fair value to cost.

The carrying amount at the date that fair value is no longer available becomes the cost.
If a reliable measure becomes available for an investment in a residual interest for which a measure was previously not available, and the instrument would have been required to be measured at fair value, the entity reclassifies the instrument from cost to fair value.

Gains and losses A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is recognised in surplus or deficit.
For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectibility of financial assets The entity assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired.
Financial assets measured at amortised cost: If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate.
The carrying amount of the asset is reduced directly OR through the use of an allowance account.

The amount of the loss is recognised in surplus or deficit .

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly OR by adjusting an allowance account.
The reversal does not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed.

The amount of the reversal is recognised in surplus or deficit.
Financial assets measured at cost: If there is objective evidence that an impairment loss has been incurred on an investment in a residual interest that is not measured at fair value because its fair value cannot be measured reliably, the amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset.
Such impairment losses are not reversed.. 1.6 Financial instruments (continued) Derecognition Financial assets The entity derecognises financial assets using trade date accounting.
The entity derecognises a financial asset only when: - - - the contractual rights to the cash flows from the financial asset expire, are settled or waived; the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or the entity, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.
In this case, the entity : - derecognise the asset; and - recognise separately any rights and obligations created or retained in the transfer.

109 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date.
Newly created rights and obligations are measured at their fair values at that date.

Any difference between the consideration received and the amounts recognised and derecognised is recognised in surplus or deficit in the period of the transfer.

If the entity transfers a financial asset in a transfer that qualifies for derecognition in its entirety and retains the right to service the financial asset for a fee, it recognise either a servicing asset or a servicing liability for that servicing contract.
If the fee to be received is not expected to compensate the entity adequately for performing the servicing, a servicing liability for the servicing obligation is recognised at its fair value.

If the fee to be received is expected to be more than adequate compensation for the servicing, a servicing asset is recognised for the servicing right at an amount determined on the basis of an allocation of the carrying amount of the larger financial asset.
If, as a result of a transfer, a financial asset is derecognised in its entirety but the transfer results in the entity obtaining a new financial asset or assuming a new financial liability, or a servicing liability, the entity recognise the new financial asset, financial liability or servicing liability at fair value.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit.
If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognition in its entirety, the previous carrying amount of the larger financial asset is allocated between the part that continues to be recognised and the part that is derecognised, based on the relative fair values of those parts, on the date of the transfer.

For this purpose, a retained servicing asset is treated as a part that continues to be recognised.
The difference between the carrying amount allocated to the part derecognised and the sum of the consideration received for the part derecognised is recognised in surplus or deficit.

If a transfer does not result in derecognition because the entity has retained substantially all the risks and rewards of ownership of the transferred asset, the entity continues to recognise the transferred asset in its entirety and recognise a financial liability for the consideration received.
In subsequent periods, the entity recognises any revenue on the transferred asset and any expense incurred on the financial liability.

Neither the asset, and the associated liability nor the revenue, and the associated expenses are offset.

Financial liabilities The entity removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished — i.e.

when the obligation specified in the contract is discharged, cancelled, expires or waived.
An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as having extinguished the original financial liability and a new financial liability is recognised.

Similarly, a substantial modification of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability and having recognised a new financial liability.
The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit.

Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers).
110 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies Presentation Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit.
Dividends or similar distributions relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit.

Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit.

Distributions to holders of residual interests are recognised by the entity directly in net assets.
Transaction costs incurred on residual interests are accounted for as a deduction from net assets.

Income tax [where applicable] relating to distributions to holders of residual interests and to transaction costs incurred on residual interests are accounted for in accordance with the International Accounting Standard on Income Taxes.
A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position when the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the entity does not offset the transferred asset and the associated liability.
1.7 Statutory receivables Identification Statutory receivables are receivables that arise from legislation, supporting regulations, or similar means, and require settlement by another entity in cash or another financial asset.

Carrying amount is the amount at which an asset is recognised in the statement of financial position.
The cost method is the method used to account for statutory receivables that requires such receivables to be measured at their transaction amount, plus any accrued interest or other charges (where applicable) and, less any accumulated impairment losses and any amounts derecognised.

Nominal interest rate is the interest rate and/or basis specified in legislation, supporting regulations or similar means.
The transaction amount for a statutory receivable means the amount specified in, or calculated, levied or charged in accordance with, legislation, supporting regulations, or similar means.
Recognition The entity recognises statutory receivables as follows: • • • if the transaction is an exchange transaction, using the policy on Revenue from exchange transactions; if the transaction is a non-exchange transaction, using the policy on Revenue from non-exchange transactions (Taxes and transfers); or if the transaction is not within the scope of the policies listed in the above or another Standard of GRAP, the receivable is recognised when the definition of an asset is met and, when it is probable that the future economic benefits or service potential associated with the asset will flow to the entity and the transaction amount can be measured reliably.
Initial measurement The entity initially measures statutory receivables at their transaction amount.

111 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Subsequent measurement 1.7 Statutory receivables (continued) The entity measures statutory receivables after initial recognition using the cost method.
Under the cost method, the initial measurement of the receivable is changed subsequent to initial recognition to reflect any: • • interest or other charges that may have accrued on the receivable (where applicable); impairment losses; and • amounts derecognised.

Accrued interest Where the entity levies interest on the outstanding balance of statutory receivables, it adjusts the transaction amount after initial recognition to reflect any accrued interest.
Accrued interest is calculated using the nominal interest rate.

Interest on statutory receivables is recognised as revenue in accordance with the policy on Revenue from exchange transactions or the policy on Revenue from non-exchange transactions (Taxes and transfers), whichever is applicable.
Other charges Where the entity is required or entitled in terms of legislation, supporting regulations, by-laws or similar means to levy additional charges on overdue or unpaid amounts, and such charges are levied, the entity applies the principles as stated in “Accrued interest” above, as well as the relevant policy on Revenue from exchange transactions or the policy on Revenue from non-exchange transactions (Taxes and transfers).
Impairment losses The entity assesses at each reporting date whether there is any indication that a statutory receivable, or a group of statutory receivables, may be impaired.

In assessing whether there is any indication that a statutory receivable, or group of statutory receivables, may be impaired, the entity considers, as a minimum, the following indicators: • Significant financial difficulty of the debtor, which may be evidenced by an application for debt counselling, business rescue or an equivalent.
• It is probable that the debtor will enter sequestration, liquidation or other financial re-organisation.

• A breach of the terms of the transaction, such as default or delinquency in principal or interest payments (where levied).

• Adverse changes in international, national or local economic conditions, such as a decline in growth, an increase in debt levels and unemployment, or changes in migration rates and patterns.
If there is an indication that a statutory receivable, or a group of statutory receivables, may be impaired, the entity measures the impairment loss as the difference between the estimated future cash flows and the carrying amount.

Where the carrying amount is higher than the estimated future cash flows, the carrying amount of the statutory receivable, or group of statutory receivables, is reduced, either directly or through the use of an allowance account.
The amount of the losses is recognised in surplus or deficit.

In estimating the future cash flows, an entity considers both the amount and timing of the cash flows that it will receive in future.
Consequently, where the effect of the time value of money is material, the entity discounts the estimated future cash flows using a rate that reflects the current risk-free rate and, if applicable, any risks specific to the statutory receivable, or group of statutory receivables, for which the future cash flow estimates have not been adjusted.
An impairment loss recognised in prior periods for a statutory receivable is revised if there has been a change in the estimates used since the last impairment loss was recognised, or to reflect the effect of discounting the estimated cash flows.
112 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies Any previously recognised impairment loss is adjusted either directly or by adjusting the allowance account.
The adjustment does not result in the carrying amount of the statutory receivable or group of statutory receivables exceeding what the carrying amount of the receivable(s) would have been had the impairment loss not been recognised at the date the impairment is revised.

The amount of any adjustment is recognised in surplus or deficit.
Derecognition The entity derecognises a statutory receivable, or a part thereof, when: • the rights to the cash flows from the receivable are settled, expire or are waived; • the entity transfers to another party substantially all of the risks and rewards of ownership of the receivable; or 1.7 Statutory receivables (continued) • the entity, despite having retained some significant risks and rewards of ownership of the receivable, has transferred control of the receivable to another party and the other party has the practical ability to sell the receivable in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.
In this case, the entity: - derecognise the receivable; and - recognise separately any rights and obligations created or retained in the transfer.

The carrying amounts of any statutory receivables transferred are allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date.
The entity considers whether any newly created rights and obligations are within the scope of the Standard of GRAP on Financial Instruments or another Standard of GRAP.

Any difference between the consideration received and the amounts derecognised and, those amounts recognised, are recognised in surplus or deficit in the period of the transfer.

1.8 Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership.
A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the entity assesses the classification of each element separately.

Operating leases - lessee Operating lease payments are recognised as an expense on a straight-line basis over the lease term.
The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

1.9 Cash and cash equivalents Cash comprises cash on hand and demand deposits.

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.

Cash and cash equivalents comprise bank balances, cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less which are available on demand.

Some equity investments are included in cash equivalents when they are, in substance, cash equivalents.
Bank overdrafts which are repayable on demand forms an integral part of the entity’s cash management activities, and as such are included as a component of cash and cash equivalents.

113 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies 1.10 Employee benefits Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees.
A qualifying insurance policy is an insurance policy issued by an insurer that is not a related party (as defined in the Standard of GRAP on Related Party Disclosures) of the reporting entity, if the proceeds of the policy can be used only to pay or fund employee benefits under a defined benefit plan and are not available to the reporting entity’s own creditors (even in liquidation) and cannot be paid to the reporting entity, unless either: • the proceeds represent surplus assets that are not needed for the policy to meet all the related employee benefit obligations; or • the proceeds are returned to the reporting entity to reimburse it for employee benefits already paid.
Termination benefits are employee benefits payable as a result of either: • an entity’s decision to terminate an employee’s employment before the normal retirement date; or • an employee’s decision to accept voluntary redundancy in exchange for those benefits.

Other long-term employee benefits are employee benefits (other than post-employment benefits and termination benefits) that are not due to be settled within twelve months after the end of the period in which the employees render the related service.
Vested employee benefits are employee benefits that are not conditional on future employment.

Composite social security programmes are established by legislation and operate as multi-employer plans to provide post- employment benefits as well as to provide benefits that are not consideration in exchange for service rendered by employees.
A constructive obligation is an obligation that derives from an entity’s actions where by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities and as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.
Short-term employee benefits Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service.
Short-term employee benefits include items such as: • wages, salaries and social security contributions; • short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service; • bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service; and • non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees.
When an employee has rendered service to the entity during a reporting period, the entity recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service: • as a liability (accrued expense), after deducting any amount already paid.
If the amount already paid exceeds the undiscounted amount of the benefits, the entity recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and • as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.
114 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.
The entity measures the expected cost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The entity recognises the expected cost of bonus, incentive and performance related payments when the entity has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made.
A present obligation exists when the entity has no realistic alternative but to make the payments.

Post-employment benefits Post-employment benefits are employee benefits (other than termination benefits) which are payable after the completion of employment.

Post-employment benefit plans are formal or informal arrangements under which an entity provides post-employment benefits for one or more employees.
Multi-employer plans are defined contribution plans (other than state plans and composite social security programmes) or defined benefit plans (other than state plans) that pool the assets contributed by various entities that are not under common control and use those assets to provide benefits to employees of more than one entity, on the basis that contribution and benefit levels are determined without regard to the identity of the entity that employs the employees concerned.
1.11 Provisions and contingencies Provisions are recognised when: • the entity has a present obligation as a result of a past event; • it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and • a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.
Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation.

The reimbursement is treated as a separate asset.

The amount recognised for the reimbursement does not exceed the amount of the provision.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.
Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation.

Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time.

This increase is recognised as an interest expense.

A provision is used only for expenditures for which the provision was originally recognised.

Provisions are not recognised for future operating surplus (deficit).
115 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies If an entity has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and measured as a provision.
A constructive obligation to restructure arises only when an entity: • has a detailed formal plan for the restructuring, identifying at least: - - - - the activity/operating unit or part of an activity/operating unit concerned; the principal locations affected; the location, function, and approximate number of employees who will be compensated for services being terminated; the expenditures that will be undertaken; and - when the plan will be implemented; and • has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it.
A restructuring provision includes only the direct expenditures arising from the restructuring, which are those that are both: • necessarily entailed by the restructuring; and • not associated with the ongoing activities of the entity No obligation arises as a consequence of the sale or transfer of an operation until the entity is committed to the sale or transfer, that is, there is a binding arrangement.
After their initial recognition contingent liabilities recognised in entity combinations that are recognised separately are subsequently measured at the higher of: • the amount that would be recognised as a provision; and • the amount initially recognised less cumulative amortisation.

Contingent assets and contingent liabilities are not recognised.

Contingencies are disclosed in note 33.


1.11 Provisions and contingencies (continued) A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

Loan commitment is a firm commitment to provide credit under pre-specified terms and conditions.
The entity recognises a provision for financial guarantees and loan commitments when it is probable that an outflow of resources embodying economic benefits and service potential will be required to settle the obligation and a reliable estimate of the obligation can be made.

Determining whether an outflow of resources is probable in relation to financial guarantees requires judgement.
Indications that an outflow of resources may be probable are: • financial difficulty of the debtor; • defaults or delinquencies in interest and capital repayments by the debtor; • breaches of the terms of the debt instrument that result in it being payable earlier than the agreed term and the ability of the debtor to settle its obligation on the amended terms; and • a decline in prevailing economic circumstances (e.g.
high interest rates, inflation and unemployment) that impact on the ability of entities to repay their obligations.
116 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies Where a fee is received by the entity for issuing a financial guarantee and/or where a fee is charged on loan commitments, it is considered in determining the best estimate of the amount required to settle the obligation at reporting date.
Where a fee is charged and the entity considers that an outflow of economic resources is probable, an entity recognises the obligation at the higher of: • the amount determined using in the Standard of GRAP on Provisions, Contingent Liabilities and Contingent Assets; and • the amount of the fee initially recognised less, where appropriate, cumulative amortisation recognised in accordance with the Standard of GRAP on Revenue from Exchange Transactions.
1.12 Commitments Items are classified as commitments when an entity has committed itself to future transactions that will normally result in the outflow of cash.

Disclosures are required in respect of unrecognised contractual commitments.
Commitments for which disclosure is necessary to achieve a fair presentation should be disclosed in a note to the financial statements, if both the following criteria are met: • Contracts should be non-cancellable or only cancellable at significant cost (for example, contracts for computer or building maintenance services); and • Contracts should relate to something other than the routine, steady, state business of the entity – therefore salary commitments relating to employment contracts or social security benefit commitments are excluded.
GRAP 17 requires disclosure of Property, plant and equipment related commitments.

MDDA discloses commitments inrelation to the grant expenditure even though they do not meet GRAP 17 disclosure requirement.

The disclosure is for the purposes of attaining fair presentation since grant expenditure is the most significant part of MDDA operations and the commitment disclosure will give more insight to the users of the financial statements.
1.13 Revenue from exchange transactions Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

1.13 Revenue from exchange transactions (continued) Measurement Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.
The amount of revenue arising on a transaction which is statutory (non-contractual) in nature is usually measured by reference to the relevant legislation, regulation or similar means.

The fee structure, tariffs or calculation basis specified in legislation, regulation or similar means is used to determine the amount of revenue that should be recognised.
This amount represents the fair value, on initial measurement, of the consideration received or receivable for revenue that arises from a statutory (non- contractual) arrangement (see the accounting policy on Statutory Receivables).
117 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Rendering of services When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date.
The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: • the amount of revenue can be measured reliably; • it is probable that the economic benefits or service potential associated with the transaction will flow to the entity; • the stage of completion of the transaction at the reporting date can be measured reliably; and • the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
When services are performed by an indeterminate number of acts over a specified time frame, revenue is recognised on a straight-line basis over the specified time frame unless there is evidence that some other method better represents the stage of completion.

When a specific act is much more significant than any other acts, the recognition of revenue is postponed until the significant act is executed.
When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date.

Stage of completion is determined by services performed to date as a percentage of total services to be performed.
Interest, royalties and dividends Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions is recognised when: • It is probable that the economic benefits or service potential associated with the transaction will flow to the entity, and • The amount of the revenue can be measured reliably.
Interest is recognised using the effective interest rate method for financial instruments, and using the nominal interest rate method for statutory receivables.

Interest levied on transactions arising from exchange or non-exchange transactions is classified based on the nature of the underlying transaction.

Royalties are recognised as they are earned in accordance with the substance of the relevant agreements.
Dividends or similar distributions are recognised, in surplus or deficit, when the entity’s right to receive payment has been established.

Service fees included in the price of the product are recognised as revenue over the period during which the service is performed.
1.14 Revenue from non-exchange transactions Revenue comprises gross inflows of economic benefits or service potential received and receivable by an entity, which represents an increase in net assets, other than increases relating to contributions from owners.
Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transferor.

Control of an asset arise when the entity can use or otherwise benefit from the asset in pursuit of its objectives and can exclude or otherwise regulate the access of others to that benefit.
118 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange.
Expenses paid through the tax system are amounts that are available to beneficiaries regardless of whether or not they pay taxes.

Fines are economic benefits or service potential received or receivable by entities, as determined by a court or other law enforcement body, as a consequence of the breach of laws or regulations.

Non-exchange transactions are transactions that are not exchange transactions.
In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.
Restrictions on transferred assets are stipulations that limit or direct the purposes for which a transferred asset may be used, but do not specify that future economic benefits or service potential is required to be returned to the transferor if not deployed as specified.

Stipulations on transferred assets are terms in laws or regulation, or a binding arrangement, imposed upon the use of a transferred asset by entities external to the reporting entity.
Tax expenditures are preferential provisions of the tax law that provide certain taxpayers with concessions that are not available to others.

The taxable event is the event that the government, legislature or other authority has determined will be subject to taxation.

Taxes are economic benefits or service potential compulsorily paid or payable to entities, in accordance with laws and or regulations, established to provide revenue to government.
Taxes do not include fines or other penalties imposed for breaches of the law.

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.

Recognition An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.
As the entity satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

1.14 Revenue from non-exchange transactions (continued) Measurement Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity.
When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability.

Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue.
When a liability is subsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the liability is recognised as revenue.

Receivables that arise from statutory (non-contractual) arrangements are initially measured in accordance with this accounting policy, as well as the accounting policy on Statutory Receivables.
The entity applies the accounting policy on Statutory Receivables for the subsequent measurement, derecognition, presentation and disclosure of statutory receivables.

119 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Interest is recognised using the effective interest rate method for financial instruments, and using the nominal interest rate method for statutory receivables.
Interest levied on transactions arising from exchange or non-exchange transactions is classified based on the nature of the underlying transaction.

Taxes The entity recognises an asset in respect of taxes when the taxable event occurs and the asset recognition criteria are met.
Resources arising from taxes satisfy the definition of an asset when the entity controls the resources as a result of a past event (the taxable event) and expects to receive future economic benefits or service potential from those resources.

Resources arising from taxes satisfy the criteria for recognition as an asset when it is probable that the inflow of resources will occur and their fair value can be reliably measured.
The degree of probability attached to the inflow of resources is determined on the basis of evidence available at the time of initial recognition, which includes, but is not limited to, disclosure of the taxable event by the taxpayer.

The entity analyses the taxation laws to determine what the taxable events are for the various taxes levied.

The taxable event for income tax is the earning of assessable income during the taxation period by the taxpayer.
The taxable event for value added tax is the undertaking of taxable activity during the taxation period by the taxpayer.

The taxable event for customs duty is the movement of dutiable goods or services across the customs boundary.

The taxable event for estate duty is the death of a person owning taxable property.

The taxable event for property tax is the passing of the date on which the tax is levied, or the period for which the tax is levied, if the tax is levied on a periodic basis.
Taxation revenue is determined at a gross amount.

It is not reduced for expenses paid through the tax system.

Transfers Apart from Services in kind, which are not recognised, the entity recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset.
The entity recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset.

Transfers that are subject to conditions are recognised as unspeng grants upon receipt.

Revenue is only recognised when the conditions are met.
Transferred assets are measured at their fair value as at the date of acquisition 1.14 Revenue from non-exchange transactions (continued) Gifts and donations, including goods in-kind Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the future economic benefits or service potential will flow to the entity and the fair value of the assets can be measured reliably.
1.15 Investment income Investment income is recognised on a time-proportion basis using the effective interest method.
120 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies 1.16 Accounting by principals and agents Identification An agent is an entity that has been directed by another entity (a principal), through a binding arrangement, to undertake transactions with third parties on behalf of the principal and for the benefit of the principal.
A principal is an entity that directs another entity (an agent), through a binding arrangement, to undertake transactions with third parties on its behalf and for its own benefit.

A principal-agent arrangement results from a binding arrangement in which one entity (an agent), undertakes transactions with third parties on behalf, and for the benefit of, another entity (the principal).
Identifying whether an entity is a principal or an agent When the entity is party to a principal-agent arrangement, it assesses whether it is the principal or the agent in accounting for revenue, expenses, assets and/or liabilities that result from transactions with third parties undertaken in terms of the arrangement.
The assessment of whether an entity is a principal or an agent requires the entity to assess whether the transactions it undertakes with third parties are for the benefit of another entity or for its own benefit.

Binding arrangement The entity assesses whether it is an agent or a principal by assessing the rights and obligations of the various parties established in the binding arrangement.
Where the terms of a binding arrangement are modified, the parties to the arrangement re-assess whether they act as a principal or an agent.

Assessing which entity benefits from the transactions with third parties When the entity in a principal-agent arrangement concludes that it undertakes transactions with third parties for the benefit of another entity, then it is the agent.

If the entity concludes that it is not the agent, then it is the principal in the transactions.
The entity is an agent when, in relation to transactions with third parties, all three of the following criteria are present: • • • It does not have the power to determine the significant terms and conditions of the transaction.

It does not have the ability to use all, or substantially all, of the resources that result from the transaction for its own benefit.

It is not exposed to variability in the results of the transaction.
Where the entity has been granted specific powers in terms of legislation to direct the terms and conditions of particular transactions, it is not required to consider the criteria of whether it does not have the power to determine the significant terms and conditions of the transaction, to conclude that is an agent.

The entity applies judgement in determining whether such powers exist and whether they are relevant in assessing whether the entity is an agent.
Recognition The entity, as a principal, recognises revenue and expenses that arise from transactions with third parties in a principal- agent arrangement in accordance with the requirements of the relevant Standards of GRAP.
121 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies 1.16 Accounting by principals and agents (continued) The entity, as an agent, recognises only that portion of the revenue and expenses it receives or incurs in executing the transactions on behalf of the principal in accordance with the requirements of the relevant Standards of GRAP.
The entity recognises assets and liabilities arising from principal-agent arrangements in accordance with the requirements of the relevant Standards of GRAP.
1.17 Grant cost expenditure Grant cost expenditure relates to grants disbursed to grant beneficiaries Ependiture is only recognised when the beneficiary has met all the contractual disbursement requirements 1.18 Administration expenses Administration expenses relate to all the expenditure incured on a day to day running of the entity except: - Employee cost - Depreciaition and impairment - Grant cost expenditure 1.19 Fruitless and wasteful expenditure Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.
Fruitless and wasteful expenditure is accounted for in line with all relating requirements, including, but not limited to, ruling Legislation, Regulations, Frameworks, Circulars, Instruction Notes, Practice Notes, Guidelines etc (as applicable).
1.20 Irregular expenditure Irregular expenditure is defined in PFMA section1 as expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation including (a) this Act; or (b) the State Tender Board Act, 1968 (Act No.

86 of 1968), or any regulations made in terms of that Act; or (c) any provincial legislation providing for procurement procedures in that provincial government.
1.21 Comparative figures Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.

1.23 Related parties A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control.
Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Joint control is the agreed sharing of control over an activity by a binding arrangement, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers).
Related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged.

122 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Accounting Policies Accounting Policies Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control over those policies.
Management are those persons responsible for planning, directing and controlling the activities of the entity, including those charged with the governance of the entity in accordance with legislation, in instances where they are required to perform such functions.

Close members of the family of a person are those family members who may be expected to influence, or be influenced by that person in their dealings with the entity.
The entity is exempt from disclosure requirements in relation to related party transactions if that transaction occurs within normal supplier and/ or client/recipient relationships on terms and conditions no more or less favourable than those which it is reasonable to expect the entity to have adopted if dealing with that individual entity or person in the same circumstances and terms and conditions are within the normal operating parameters established by that reporting entity’s legal mandate.
Where the entity is exempt from the disclosures in accordance with the above, the entity discloses narrative information about the nature of the transactions and the related outstanding balances, to enable users of the entity’s financial statements to understand the effect of related party transactions on its annual financial statements.
1.24 Events after reporting date Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue.
Two types of events can be identified: • those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and • those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

The entity will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date once the event occurred.
The entity will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the financial statements.

1.25 Prior period errors and adjustments Errors can arise in respect of the recognition, measurement, presentation or disclosure of elements of financial statements.
Prior period errors are omissions from, and misstatements in, an entity’s financial statements for one or more prior periods arising from failure to use/misuse of reliable information that: - Was available when the financial statements for that period were issued - Could have been reasonably expected to be taken into account in those financial statements.
A prior period error is corrected by retrospective restatement except to the extent that it is impracticable to determine either the period-specific effects or the cumulative effect of the error.
When it is impracticable to determine the period-specific effects of an error on comparative information for one or more prior periods presented, the entity restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable (which may be the current period) When it is impracticable to determine the cumulative effect, at the beginning of the current period, of an error on all prior periods, the entity restate the comparative information to correct the error prospectively from the earliest date practicable.
123 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Notes to the Annual Financial Statements Figures in Rand 2.
New standards and interpretations 2.1 Standards and interpretations issued, but not yet effective The entity has not applied the following standards and interpretations, which have been published and are mandatory for the entity’s accounting periods beginning on or after 01 April 2023 or later periods: Standard/ Interpretation: Effective date: Years beginning on or after expected impact: GRAP 103 (as revised): Heritage Assets 01 April 2099 01 April 2099 Unlikely there will be a material impact GRAP 25 (as revised): Employee Benefits 01 April 2023 Unlikely there will be a material impact GRAP 104 (as revised): Financial Instruments 01 April 2025 Unlikely there will be a material impact iGRAP 21: The Effect of Past Decisions on Materiality 01 April 2023 Unlikely there will be a material impact GRAP 1 (amended): Presentation of Financial Statements 01 April 2023 Unlikely there will be a material impact 124 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Notes to the Annual Financial Statements Notes to the Annual Financial Statements 3.
Property, plant and equipment 2023 2022 Cost / Valuation Accumulated Carrying value Cost / Valuation Accumulated Carrying value depreciation depreciation and accumulated impairment and accumulated impairment Furniture and fixtures Office equipment IT equipment 1 347 760 77 452 (724 827) (70 820) 622 933 6 632 1 347 760 (668 182) 77 452 (65 770) 679 578 11 682 2 115 845 (1 366 360) 749 485 2 115 845 (988 779) 1 127 066 Leasehold improvements 1 527 715 (1 527 713) 2 1 527 715 (1 404 974) 122 741 Total 5 068 772 (3 689 720) 1 379 052 5 068 772 (3 127 705) 1 941 067 Reconciliation of property, plant and equipment - 2023 Furniture and fixtures Office equipment IT equipment Leasehold improvements Total Opening Depreciation Impairment Total balance 679 578 11 682 1 127 068 122 741 (56 645) (5 050) (377 583) (95 482) loss - - - (27 257) 622 933 6 632 749 485 2 1 941 069 (534 760) (27 257) 1 379 052 125 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Reconciliation of property, plant and equipment - 2022 Furniture and fixtures Office equipment IT equipment Opening Additions Depreciation Impairment Total balance 736 223 18 931 - - (56 645) (7 249) loss - - 679 578 11 682 819 573 604 524 (278 822) (18 209) 1 127 066 Leasehold improvements 91 474 56 224 (24 957) - 122 741 1 666 201 660 748 (367 673) (18 209) 1 941 067 Pledged as security No assets are pledged as security.
Assets subject to finance lease (Net carrying amount) Leasehold improvements 2 122 741 Expenditure incurred to repair and maintain property, plant and equipment Expenditure incurred to repair and maintain property, plant and equipment included in Statement of Financial Performance Leasehold improvements IT Equipment 42 665 5 852 4 765 - 48 517 4 765 4.

Deferred Lease Liability Current liabilities (28 973) (316 970) 5.
Receivables from exchange transactions Deposits Other receivables Prepaid expenses 126 - 665 890 179 625 966 179 - 750 000 179 625 2 382 069 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Notes to the Annual Financial Statements Deposits 120+ days Other receivables 120+ days 665 890 179 625 1 686 032 Financial asset receivables included in receivables from exchange transactions above 179 625 30 147 Total receivables from exchange transactions Credit quality of trade and other receivables 179 625 2 382 069 - The credit quality of trade and other receivables that are neither past nor due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates.
Deposits relates to the deposit paid on occupation of the leased building.

Prepaid expenses relates to advance payments made to service providers/service not rendered at year end.

Other receivables for prior year pertains to double payment made to the service provider.

6.
Receivables from non-exchange transactions Staff debtors 42 280 89 161 Credit quality of receivables from non-exchange transactions The credit quality of other receivables from non-exchange transactions that are neither past nor due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates: Staff debtors for prior year mainly relates to recoverable relocation costs paid to a former staff member who did not serve the minimum employment period as required by the MDDA human resources policy, cash advances advanced to MDDA staff members for travelling costs.
7.
Cash and cash equivalents Cash and cash equivalents consist of: Bank balances Short-term deposits Credit card Current assets Current liabilities 23 655 387 42 998 151 68 544 639 90 763 040 (32 663) (18 378) 92 167 363 133 742 813 92 200 026 133 761 191 (32 663) (18 378) 92 167 363 133 742 813 127 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Figures in Rand 2023 2022 Short-term deposits are the surplus funds deposited on the South African Reserve Bank Call Account.
Funds are available for withdrawal immediately.

The cash and cash equivalents balance includes R 97 387 145 (2022 - R 133 742 813) funds committed for the approved grant beneficiaries, refer to note No.

22 for commitment disclosure.

Other current liabilities - credit card (23 414) (18 378) Other current liabilities relates to the balance on the Corporate Credit Card.

The balance is paid through a debit order on the 6th of each month.

8.
Unspent conditional grants and receipts Unspent conditional grants and receipts comprises of: Unspent conditional grants and receipts Department of Communication - Programme production Competition Commission - Economic development fund Movement during the year Balance at the beginning of the year Additions during the year Disbursements to beneficiaries Income recognition during the year Programme Production 5 802 470 5 802 470 12 737 145 33 613 805 18 539 615 39 416 275 39 416 275 31 865 860 475 152 9 929 997 (19 216 630) (2 141 623) (2 135 182) (237 959) 18 539 615 39 416 275 During the 2008/2009 financial year, MDDA entered into a Memorandum of Understanding with the Department of Communications for Programme Production support for broadcast projects for an R 20 million.
The remainder of R5,8 million will be realised as revenue as spending occurs.

Competition Commission The Competition Commission fined different role players within the media industry for uncompetitive behaviour and requested MDDA to manage the Economic Development Fund and implement remedial projects on its behalf.

The ramainder of the R 23 million (2022: R 38 million) will be realised as revenue as spending occurs.
Unfulfilled conditions and other contingencies attaching to government assistance that has been recognised.

See note for reconciliation of grants from National/Provincial Government.

These amounts are invested in a ring-fenced investment until utilised.

128 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Notes to the Annual Financial Statements Figures in Rand 9.
Provisions Reconciliation of provisions - 2023 2023 2023 Employee costs - provisions 1 852 408 2 093 795 (1 695 546) (156 862) 2 093 795 Opening Balance Additions Utilised during Reversed Total the year during the year Reconciliation of provisions - 2022 Employee cost provisions 1 560 947 1 754 648 (1 463 187) 1 852 408 The provisions relates to the provision for staff performance bonuses.
Bonuses are provided based on the projected staff Opening Balance Additions Utilised during Total the year performance.

10.

Payables from exchange transactions Trade payables Accrued leave pay Accrued expenses Other accrued expenses 2 416 567 2 006 812 649 954 294 743 - 1 156 370 271 850 188 588 3 361 264 3 623 620 Other payables - Reserve Bank pertains to an amount that was transferred a withdrawal twice erroneously by the bank and made a reversal without debiting the MDDA account 11.
Revenue Commissions received Other income Interest received - investment Government grants & subsidies Broadcast funder contributions The amount included in revenue arising from exchanges of goods or services are as follows: Commissions received Other income Interest received - investment 2 135 181 - - 237 958 5 500 5 060 060 3 398 102 7 195 241 3 641 560 129 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Figures in Rand 2023 2022 The amount included in revenue arising from non-exchange transactions is as follows: Transfer revenue Government grants & subsidies Broadcast funders contributions 12.
Broadcast funders contributions Broadcaster contributions 13.

Government grants & subsidies Operating grants Department of Communications and Digital Technologies MICT : SETA Grant - Conditional Competition Commission 14.

Interest Income Interest revenue Bank 15.

Other revenue Commissions received Other income Other income recognised pertains to insurance compensations.

16.
16.

Grant cost expenditure Operarional grant Grant disbursement Projects systems expenses Training, workshop, and other administration costs - 5 500 2 135 181 243 458 87 964 977 63 683 621 884 559 629 075 7 361 060 7 855 331 96 210 596 72 168 027 Grant disbursements relate to the funds paid to beneficiaries.
Projects systems expenses relates to the projects management systems costs.

Workshop and travelling costs incurred by the projects managing, research and monitoring units are classified as workshop and travelling costs.

130 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Notes to the Annual Financial Statements Figures in Rand 2023 2022 17.
Employee related costs Basic Performance Bonuses Medical aid - company contributions Unemployment Insurance Fund - UIF Skills Development Levy - SDL Leave pay provision charge Cellphone allowance Travel, motor car, accommodation, subsistence and other allowances Overtime payments Acting allowances Contributions to Provident fund 18.

Depreciation and amortisation Property, plant and equipment 19.
Administration expenses Advertising Assessment rates & municipal charges Auditors remuneration Bank charges Cleaning Computer expenses Consulting and professional fees Insurance Licenses Placement fees Postage and courier Printing and stationery Repairs and maintenance Security Staff welfare Subscriptions and membership fees Telecommunications costs Training Travel - local 27 476 330 1 936 934 87 638 86 782 339 445 (1 063) 640 000 481 741 - - - 92 610 115 898 4 765 1 000 31 066 6 475 447 912 952 904 549 052 131 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Figures in Rand Electricity Sewerage and waste disposal Refuse Board administration costs Non-executive directors emoluments Communications Legal fees Other expenses 20.
Impairment loss Impairments Property, plant and equipment Assets condition assessment was conducted at year end and there were no items of property plant and equipment were found to be in an unusable.

Impairment expenditure was recognised on the carrying value of impaired assets.

21.

Auditors’ remuneration Fees 22.
Cash used in operations Deficit Adjustments for: Depreciation and amortisation Impairment deficit Movements in operating lease assets and accruals Movements in provisions Changes in working capital: Receivables from exchange transactions Other receivables from non-exchange transactions Payables from exchange transactions Unspent conditional grants and receipts 132 1 264 900 1 350 887 (23 201 166) (15 336 449) 534 759 27 257 (287 997) 241 387 2 202 444 46 881 (262 356) (20 876 660) 367 671 18 209 55 444 291 461 (441 890) (53 155) 347 019 7 550 415 (41 575 451) (7 201 275) MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Notes to the Annual Financial Statements Figures in Rand 23.
Commitments Operational commitments Already contracted for but not provided for • Opening balance • Projects approved • Disbursement to projects • Write-backs Total operational commitments Already contracted for but not provided for 2023 2022 95 996 680 55 422 758 (81 690 156) - 91 503 498 69 382 794 (61 619 366) (3 270 246) 69 729 282 95 996 680 69 729 282 95 996 680 The entity has entered into contracts to fund community radio, TV, print, digital projects, media and advertising bursaries commitments regarding the projects are shown above.
All funding agreements are for periods up to 18 months for the projects and 36 months for media and advertising students bursaries.
Other operational commitments Other operational commitments Open orders Long term contracts Operating leases - as lessee (expense) Minimum lease payments due - within one year - in second to fifth year inclusive Office building MDDA office space is leased from SABC.

The lease agreement is for a period of 60 months.

The lease has an annual escalation of 8%.


There are no provision for contingent rental 133 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Figures in Rand 24.
Related parties ` Relationships Directors Controlling entity Shareholder with significant influence Members of key management Related party balances 2023 2022 Refer to directors’ report note Department of Communications and Digital Technologies Government Communication Information Systems Refer to below Amounts included in Trade receivable (Trade Payable) regarding related parties GCIS - Receivables DCDT - Conditional grants - 348 000 (5 802 470) (5 802 470) Government Communications Information Systems MDDA has received grants to the value of R33 026 000 from GCIS in the 2021-22 financial year (2021 - R32 279 000).
MDDA has participated in community media airtime buying through GCIS during the financial year.

The advance payments that were not yet utilised at the end of prior financial year amounted to R348 000 Department of Communications and Digital Technologies The R 5 802 470 relates to a conditional grant received in relation to programme production.
134 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Figures in Rand 24.
Related parties (continued) Remuneration of management Management class: Executive management 2023 Name Basic salary Bonuses and Other short- term Acting Subsistence Total performance related employee benefits allowance and travelling Ms. Z. Potye: Chief Executive Officer (Terminated - 25 Jan 2023) Mr. Y. Asmal: Chief Financial Officer (resigned 30 September 2022) Mr. K Maposa: Acting Chief Financial Officer - (From 01 October 2022) Mr. M. Kashe: Acting CEO (From 01 April 2022) Ms. Z. Mqolomba: Research Training, Monitoring & Evaluation Executive (Resigned 30 June 2022) Ms. L. Dibetso: Acting Research Training, Monitoring & Evaluation - (From 01 July 2022) Ms. S. Mgudlwa: Active Executive Projects (From 01 April 2023) 1 974 626 1 065 909 514 648 1 767 519 469 060 1 081 174 1 139 102 payments - 92 054 - 89 602 84 343 61 068 63 370 30 000 18 000 14 285 39 077 9 322 58 331 32 518 - - 333 161 467 996 - 78 526 482 892 - Name Ms. Z. Potye: Chief Executive Officer Mr. Y. Asmal: Chief Financial Officer Mr. M. Kashe: Executive Projects Ms Z. Mqolomba: Research, Training, Monitoring and Evaluation Executive 8 012 038 390 437 201 533 1 362 575 25 791 9 992 374 Basic salary Bonuses and Other short- term Acting Subsistence Total performance related employee benefits allowance and travelling 2 063 156 1 765 740 1 293 435 1 061 008 payments 115 663 90 593 88 200 - 322 748 105 508 230 706 181 392 - - 40 713 - MDDA ANNUAL REPORT Notes to the Annual Financial Statements Figures in Rand 25.
Directors emoluments Non-executive 2023 Prof. Hlengani Mathebula Ms. Brenda Leonard Ms. Andiswa Ngcingwana - Resigned 4 April 2022 Mr Hoosain Karjieker Ms. Marina Clarke Ms. Martina Della-Togna - Appointed 19 May 2022 Ms. Carol Mohlala** - Appointed 19 May 2022 Ms. Nadia Bulbulia Ms Nomkhosi Peter** - Resigned 31 March 2023 2022 Prof. Hlengani Mathebula Ms. Brenda Leonard Ms. Andiswa Ngcingwana Mr. Hoosain Karjieker Ms. Marina Clarke Mr Moshoeshoe Monare Ms. Nadia Bulbulia Mr Ndivhuho Munzhelele Members’ fees 113 109 205 434 3 511 181 980 209 184 94 770 4 274 146 154 1 094 Total 113 109 205 434 3 511 181 980 209 184 94 770 4 274 146 154 1 094 959 510 959 510 Members’ fees 183 356 227 440 32 562 28 188 227 934 80 190 90 396 15 038 Total 183 356 227 440 32 562 28 188 227 934 80 190 90 396 15 038 ** The following individual served as MDDA board members but are not remunerated because they are shareholder representative or work for other organs of state.
They are however, entitled to reimbursement of 885 104 885 104 their travel and data expenditure.

136 MDDA ANNUAL REPORT Notes to the Annual Financial Statements Notes to the Annual Financial Statements Figures in Rand 25.
Directors emoluments (continued) Audit and Risk Committee (ARC) 2023 Mr. Fortune Mkhabela** Ms. Margaret Phiri Ms. Matseliso Shongwe Mr. Simon Mankgaba** Mr Hoosain Karjieker - Appointed 22 April 2022 2022 Ms. Phuti Phukubje Ms. Margaret Phiri Ms. Matseliso Shongwe Mr. Fortune Mkhabela** Mr. Simon Mankgaba** Emoluments Other benefits Total - 35 970 54 370 - - - - - 1 600 - - 35 970 54 370 1 600 - 90 340 1 600 91 940 Emoluments 1 236 27 035 26 378 - - Total 1 236 27 035 26 378 - - 54 649 54 649 * Other benefits comprise travel allowance and medical benefits ** The members below were not remunerated a meeting attendance board fees because they work for other organs of state.
However, members are entitled for reimbursement of their travel and data expenditure as disclosed.

137 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements 26.
Irregular expenditure Irregular expenditure 7 081 687 The prior year irregular expenditure mainly pertains to the total expenditure incurred for the employment contract to the former Chief Financial Officer from September 2018 to May 2022.

The period in question where the CFO worked without a signed contract of employment.

This irregular expenditure was investigated and confirmed during the year under review and has subsequently been submitted and approved by the Board for condonation.

27.
27.

Fruitless and wasteful expenditure Fruitless and wasteful expenditure 29 285 Payroll declaraction submitssions were submitted late due to lack of capacity within the Finance division thus incurred interest on late payment from SARS.

Disciplinary steps taken/criminal proceedings SARS penalties 28.
Prior-year adjustments 29 285 - Presented below are those items contained in the statement of financial position, statement of financial performance and cash flow statement that have been affected by prior-year adjustments: Economic Development Fund Interest MDDA received correspondence in the form of agreed upon procedures that the interest should be included in the EDF fund and not revenue for MDDA.
However this correspondence came after year end of 31 March 2022 and this indicates that it is an event after reporting period but it is a non-adjusting event and management should not have recognised this interest in the unspent conditional grants, it should have been treated as revenue as in the prior years.
CFO Secondment The total amount of R615 977.58 was invoiced to BrandSA for the Secondment of Mr Khathu Maposa to Brand SA from MDDA as an Acting CFO, however of this total the amount of R30 146.30 was relating to March 2022.

Salaries and Wages Error Salary for HR contract employee pertaining to March 2023 month end paid in April.
138 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Notes to the Annual Financial Statements Figures in Rand 2023 2022 28.
Prior-year adjustments 2022 (continued) Note As previously Correction of Restated Unspent conditional grants and receipts Receivables from exchange transactions Payables from exchange transactions Statement of financial performance 2022 Interest Income Other Income Employee Costs Surplus for the year reported error (38 238 376) (1 177 899) (39 416 275) 2 351 922 (3 572 101) 30 147 (51 519) 2 382 069 (3 623 620) (38 238 376) (1 199 271) (40 657 826) Note As previously Correction of Restated reported 3 867 944 36 175 261 33 309 445 error 469 842 708 057 21 372 3 398 102 35 467 203 33 229 152 73 352 650 1 199 271 72 094 457 29.
Events after the reporting date A claim against MDDA by a beneficiary has been settled and MDDA will have to pay legal fees of the claimant of approximately R300,000.

30.

Going concern We draw attention to the fact that at 31 March 2023, the entity had an accumulated surplus (deficit) of R69 744 671 and that the entity’s total assets exceed its liabilities by R69 744 671.

The Annual Financial Statements have been prepared on the basis of accounting policies applicable to a going concern.
This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

139 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Figures in Rand 31.
Risk manament Liquidity risk 2023 2022 Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions.

Due to the dynamic nature of the underlying businesses, entity treasury maintains flexibility in funding by maintaining availability under committed credit lines.
The entity’s risk to liquidity is a result of the funds available to cover future commitments.

The entity manages liquidity risk through an ongoing review of future commitments and credit facilities.

Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored.
The table below analyses the entity’s financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date.

The amounts disclosed in the table are the contractual undiscounted cash flows.

Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
At 31 March 2023 Forward foreign exchange contracts - cash flow hedges Payables from exchange transactions Provisions Deferred lease liability At 31 March 2022 • Payables from exchange transactions • Provisions • Deferred lease liability Credit risk Less than 1 Between 1 and year 2 years Between 2 and 5 years Over 5 years 8 960 071 2 093 795 28 973 - - - - - - - - - Less than 1 Between 1 and year 2 years Between 2 and 5 years Over 5 years 3 624 620 1 852 408 316 970 - - - - - - - - - Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors.
The entity only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Trade receivables comprise a widespread customer base.

Management evaluated credit risk relating to customers on an ongoing basis.

If customers are independently rated, these ratings are used.

Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors.
Individual risk limits are set based on internal or external ratings in accordance with limits set by the board.

The utilisation of credit limits is regularly monitored.

Sales to retail customers are settled in cash or using major credit cards.

Credit guarantee insurance is purchased when deemed appropriate.
140 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Notes to the Annual Financial Statements Market risk Interest rate risk As the entity has no significant interest-bearing assets, the entity’s income and operating cash flows are substantially independent of changes in market interest rates.
Cash flow interest rate risk Current interest Due in less than Due in one to two Due in two to Due in three to Due after five rate 5,90 % a year 73 755 172 years three years four years - - - years - 2023 2022 802 127 1 963 297 Financial instrument Short-term deposits Figures in Rand 32.
Lease rentals on operating lease Premises Contractual amounts 33 Contingencies Contingent assets A claim of R 521 120 has been lodged against a former employee who was paid a salary and other benefits while on unathorised sick leave.

Contingencies liabilities Contingent Liability 300 000 1 085 654 A claim has been made against the MDDA by a beneficiary whose funding agreement has been cancelled.

34.
34.

Segment Reporting Grap 18 requires entities to to provide information about the specific operational objectives and major activities of an entity as well as the resources devoted to and costs of these objectives and activities.
A segment is an activity of an entity: that generates economic benefits or service potential (including economic benefits or service potential relating to transactions between activities of the same entity); whose results are regularly reviewed by management to make decisions about resources to be allocated to that activity and in assessing it’s performance; and for which separate financial information is available.
Management has considered the information which is reported internally and such information does not meet the criteria of segments.

MDDA provide funding to beneficiaries for media development and that is the only segment of the entity.

Management has thus concluded that MDDA does not meet the requirements to do segment reporting.
141 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements 35.

Budget Information GRAP 24 states that an entity that prepares and presents financial statements under the accrual basis of accounting shall apply this Standard.
The Standard further states in Grap 24.03 that the Standard is applied by entities that are required, or elected, to make their approved budgets publicly available; and they are held publicly accountable for those budgets.

According to Grap 24.04 a publicly available approved budget means that the budget has been approved; and made available to the public at large by tabling in Parliament, legislature, municipal council.
This standard does not require approved budgets to be made publicly available, nor does it require that financial statements disclose information about, or make comparisons with approved budgets that are not made publicly available.

MDDA budget is not made publicly available by tabling in parliament.

It is for this reason that this information will not be disclosed in the financial statements but will be included as part of the annual report.
142 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements Notes to the Annual Financial Statements 143 MDDA ANNUAL REPORTMedia Development and Diversity Agency(Registration number PE63)Annual Financial Statements for the year ended 31 March 2023