Spending above board

THE ARTICLES in the Weekend Argus of January 10 talked about issues of accountability, postponement and political interference at this year’s minstrel carnival and also mentioned a National Lottery Distribution Trust Fund (NLDTF) grant to the Cape Minstrel Carnival Association.

The National Lotteries Board (NLB) wishes to clarify its role in supporting the carnival through grants from the NLDTF.

Each year the NLB receives thousands of applications for funding in the charities, arts, culture and national heritage, and sport and recreation sectors in response to specific calls for application.

A focus of grants has been on job creation and grants that will benefit and empower the communities to which they are allocated.

The applications the board receives detail the purpose for which the grants would be used together with an implementation plan and detailed budget. Applications that comply with mandatory funding requirements are presented to the relevant distributing agency for consideration.

The distributing agency considers the merit of each application and allocates a grant to successful applicant organisations together with the budget line items to be funded.

Each line item is allocated a specific sum of money, which is based on the budget presented with the application.

In the case of the Cape Minstrel Carnival Association, the last two allocations amounting to R40.64 million were as follows:

1 R13.32m paid in 2012 and 2013 – carnival costs.

2 R27.32m paid in 2014 – carnival costs (R14.32m) and the Carnival Heritage Museum (R13m).

Therefore, the grant payments specifically for the carnival amount to R27.64m in three years ( 2012- 2014) and not R41m as reported in the publication.

The grants to the Cape Minstrel Carnival Association will be utilised for job opportunities for local dressmakers, transport, security, ambulance services, sound and stage, fencing, advertising, media, ablution facilities, umbrellas, hats, fabric/ accessories, marshals, meals, venue hire, workshop facilitators, salaries, planning workshop, dress rehearsal, Tweede Nuwe Jaar Street March and the Minstrel Carnival.

It is imperative that beneficiaries of NLDTF grants report on the use of funds, together with documentation to support the information provided. The NLB scrutinises the reports before making any further payment or grant. Any unauthorised deviation amounts to breach of agreement and action, as described in the grant agreement, will be taken.

Further, all applicants are obliged to submit annual financial statements that reflect the NLDTF grant and how it was spent.

The NLB is satisfied that the Cape Minstrel Carnival Association has spent all funds thus far in accordance with the grant agreement and will continue to ensure that this grant, and grants to all the other NLDTF beneficiaries will be used for their intended purposes.