Table of Contents
AGM Agenda
- Opening, Welcome & Apologies
- Annual Report
- Confirmation: Co-Opted Board Members
- Confirmation: Membership Fees
- Acceptance: Annual Financial Statements
- Appointment: Auditors 2024-2025
- Closure
Annual General Meeting 2023-2024: Minutes
| Agenda item | Minutes |
|---|---|
| Welcome | The meeting opened at 17:45. C. Solani welcomed members and guests. Apologies were entered for M. Botha, M. Greyling, C. Liebenberg, T. Liebenberg, J. Mac Taggart, Z. Marawu, N. Mchunu-Siqhaza, N. Taliwe and G. Titus. |
| Annual Report | The report is attached. Presented by D. Fourie. B. Philips commended the staff, and said that the warm and loving relationships they provide are healing. B. Philips asked what plans were in place to ensure sustainability. D. Fourie responded that plans were in progress to register a society lottery with the National Lotteries Commission, and that work was being done to broaden the donor base. B. Kwezi asked for a date by which debit-order facilities would be available, and was assured they would be in place by the end of September 2024. B. Kwezi suggested networking with the ward councillor and other organisations to access funding and opportunities, and that Sparrows engage more with the Department of Social Development to find common ground on matters that may strain the relationship. B. Philips asked about the appointment of an Executive Director. D. Fourie responded that the board had planned to appoint one by 1 September 2024 but, after consideration, decided to do so by the end of the current financial year. The position would probably be advertised again in January 2025, with an appointment by 31 March 2025. T. Mabuto asked about establishing a newsletter. B. Philips said it was important to share information. D. Fourie responded that establishing the newsletter was in progress. J. van Heerden thanked D. Fourie, the staff and the governing board for stepping into the gap left by the passing of N. Bhazana. She also thanked the Department of Social Development, and in particular T. Msila, for their support, and B. Philips for volunteering his time to give psycho-social support to staff and children. |
| Confirmation: Co-Opted Board Members | C. Solani, T. Mabuto and N. Mchunu-Siqhaza were confirmed as board members. Proposed by J. van Heerden, seconded by L. Gxothiwe. |
| Confirmation: Membership Fees | The governing board’s decision to increase membership fees from R50 a year to R50 a month was confirmed. Proposed by C. Jonk, seconded by B. Philips. |
| Acceptance: Annual Financial Statements | The statements are attached. Presented by D. Fourie. The audit was accepted. Proposed by J. van Heerden, seconded by T. Mabuto. |
| Appointment: Auditors for 2024-2025 | A2A Kopano has been the auditors for Sparrows for 24 years. D. Fourie suggested they remain the auditors, and the group accepted. Proposed by J. van Heerden, seconded by B. Philips. |
| Closing | C. Solani closed the meeting at 18:30 and invited members and guests to enjoy refreshments. |
Executive Director’s Report
In memory
During the 2023-2024 financial year Sparrows lost one of its children, at the end of June 2023, and its Executive Director, Nopasika Bhazana, at the end of March 2024. We thank Chris and Tertia Liebenberg, Gateway Church and the community members who offered help.
Finances
Sparrows received funding for 25 children from the Department of Social Development for the financial year, amounting to R1 236 000. Of this, R98 880 was short-paid in the first quarter. We queried the short payment throughout the year without resolution. We do not expect the Department to resolve it: an official told us there is no funding available in the new financial year for a matter from the previous one.
The allocation of R4 120 per child per month is split over four line items:
| Funding line | Share | Per child |
|---|---|---|
| Nutrition | 28% | R1 153.60 |
| Development, therapy and recreation | 13% | R535.60 |
| Personal care | 17% | R700.40 |
| Administration | 42% | R1 730.40 |
| Total | 100% | R4 120.00 |
Because of economies of scale, the allocation for nutrition is enough. The other items leave us little room to work with.
We are fortunate to receive regular financial contributions from individuals and businesses, which amounted to nearly R420 000. This is an important and significant contribution, because salaries are not fully funded, and the salaries of the Executive Director and the Development Director are not funded at all. Closing the funding gap has been extremely difficult without funding from the National Lotteries Commission over the past years.
During the year we raised about R90 000 through the sale of two vehicles, and we received discounts to the value of R42 600.
Despite this income, Sparrows made a loss of R103 469 for the year, down from a loss of R328 269 in the previous year. Expenses totalled R1 824 301, up by R41 354 from R1 782 947. After consecutive losses our cash reserves are depleted, and rebuilding them will take serious attention and commitment.
| Finances at a glance | Amount |
|---|---|
| Department of Social Development funding for 25 children | R1 236 000 |
| Of which short-paid in the first quarter | R98 880 |
| Contributions from individuals and businesses | nearly R420 000 |
| Raised by the sale of two vehicles | about R90 000 |
| Discounts received | R42 600 |
| Total expenses | R1 824 301 |
| Expenses in the previous year | R1 782 947 |
| Loss for the year | R103 469 |
| Loss in the previous year | R328 269 |
We received a qualified audit opinion. According to our auditors, all material aspects of our financial reporting are verifiable and correct, but they cannot express an opinion on cash collections such as fundraising events, because that cash enters the accounting system only after it has been deposited in the bank account. This is true of other organisations like Sparrows and is not unique to us.
Significant meetings
The board resolved to meet every two months during the year, and did so. Three board members were replaced towards the end of the financial year: two vacancies arose from missed meetings, in terms of the Sparrows constitution, and one from a resignation. We welcome Ms Solani, Ms Mabuto and Ms Mchunu-Siqhaza to the board and thank them for their willingness to serve.
The Annual General Meeting for 2022-2023 was poorly attended, and its first sitting did not form a quorum. The second sitting formed an automatic quorum in terms of the Sparrows constitution, and resolutions were passed. We learnt that officials of the Department of Social Development had presumed a quorum exists when board members attend. In terms of the Sparrows constitution, a quorum exists when half plus one of the members of the organisation attend.
During the year the board resolved to increase membership fees from R50 a year to R50 a month (R600 a year). This has not yet been implemented, because we first need to apply for debit-order facilities to give members a convenient way to pay.
We made no changes to the constitution, because the proposed changes are still being measured against various requirements in law. We expect to table them at the next Annual General Meeting in 2025.
Objectives
“The object of the Organisation shall be to protect and promote the development, interest, safety and well-being of children within the context of family and community and to safeguard the rights of children.”
We made no changes to the objectives of the organisation or to how they are currently carried out. Sparrows still functions mainly as a Child and Youth Care Centre, giving residential care to children in need of care and protection. Residential care includes nutrition, personal development, individual and group therapy, recreation and education. We provided these services to 25 children during the year.
Children who needed specialist help, including speech and occupational therapy at Frontier Hospital, received it, and they are making good progress.
Eight children were permanently reunified with their families and communities of origin: five in June and three in December. Reports from their social workers say they are doing well. During the December holiday, 13 children were able to visit family and 12 stayed at Sparrows.
Staff
The staff of Sparrows have continuously shown their dedication and their willingness to adapt to changing circumstances, while earning a third of what their counterparts in government earn.
Our social worker, Faith Fusa, has been with us since March 2015, and child and youth care workers Nosiphiwo Taliwe and Nosipho Rasmeni since August 2010 and October 2013 respectively. Katie Domingo, who joined Sparrows in October 2005, retired in January 2024 after nearly 20 years of service. We wish her all the best in this new phase.
Sustainability
We are continually asked what we would do to sustain Sparrows when the Department of Social Development stops funding us. We offer some answers.
In the NAWONGO case the court found that the Children’s Act places a duty on government, which must fund Child and Youth Care Centres. The extent of the funding depends on available resources, but the Act provides that it must progressively increase. In the Eastern Cape, one of the poorest provinces, that is not happening. Government and business give much more support in Gauteng and the Western Cape, and it stays within those provinces.
The reality is that we cannot sustain an organisation with expenses of R1 824 301 on yard sales and donations of goods. We will have to work harder than ever to broaden our donor base and to target cash donations in particular. Cash can rebuild our reserves and take pressure off other budget lines to augment salaries, which few donors fund. Without staff we cannot operate, and without well-paid positions we cannot attract the best staff to deliver the best services.
Conclusion
The 2023-2024 financial year brought many challenges, but also opportunities and successes. I appreciate every person who contributed to concluding the year successfully: children, staff, board, members, donors and partners. I trust that the 2024-2025 financial year will build on the strength of those who have come before us.
David Fourie
Executive Director (Acting)
Donors
We appreciate every donation, whether in cash or in kind. If you made a donation and your name does not appear among our donors, please contact us so that we can correct the mistake.
- ACVV Cradock
- C. McEwan
- AllCopy Publishers
- T. Miza
- J. Bhazana
- N. Moletsane
- N. Bhazana
- Peter’s Place
- Blanco Holiday Farm
- Presbyterian Ladies
- M. Botha
- C. Price
- A. Daliwonga
- Z. Rasmeni
- Department of Social Development
- SAPS
- K. Domingo
- Sparrows Staff
- D. Fourie
- W. Scott
- Gateway Church
- G. Titus
- M. Greyling
- Usave
- S. Harvey
- E. Venter
- L. Killian
- J. van der Vyver
- L. King
- C. Weerts
- A. Kula
- S. Yose
- D. Mac Taggart
- J. van Zyl
- B. McEwan