South African Medical Research Council 
(MRC)

Annual Performance Plan
__________________________________________

for 2011 - 2012

Date of tabling

9 March 2011
__________________________________________

Official sign-off

It is hereby certified that this Annual Performance Plan:

•	Was developed by the management of the South African Medical Research Council (MRC) under the guidance of the National Department of Health

•	Was prepared in line with the current Strategic Plan of the Medical Research Council.

•	Accurately reflects the performance targets which the Medical Research Council will endeavour to achieve given the resources made available in the budget for 2011/12

Mr B Mahlangu			Signature:     
Chief Financial Officer

                                                                    
Dr M A Dhansay 			Signature: 
Acting Chief Executive Officer 

Contents

Official sign-off
Contents
Part A: Strategic Overview
1.	Introduction
2	Updated Situational analysis
2.1	Performance environment
2.1.1	Health Sector
2.1.2 	National System of Innovation
2.1.3 	Clinical Research
2.1.4 	Challenges
2.2	Organisational environment
2.2.1	MRC Research Structures
2.2.2	Research priorities
2.2.3	Research enablement
2.2.4	Key priorities for the immediate term
3.	Revisions to legislative and other mandates
4	Overview of 2011/2 Budget and MTEF Estimates
4.1	Expenditure Estimates
Part B: Programme and sub-programme plan
5.1	Strategic Objectives, performance indicators and annual targets.
5.2	Reconciling performance targets with the Budget and MTEF
Part C: Links to other plans
Links to the long-term infrastructure and other capital plans
Conclusion
Annexure A: Detailed MRC Budget 2011 - 2012
Annexure B: Acronyms
References:

Part A: Strategic Overview
1.	Introduction 

The South African Medical Research Council (MRC) was established in July 1969 (Act 19 of 1969) as an independent statutory body to co-ordinate health and medical research activities throughout South Africa. Currently, the MRC operates as a statutory Science Council functioning within the ambit of the MRC Act (Act 58 of 1991), as well as the Public Entities Act (Act 30 of 1997 as amended in 2003).

In terms of the MRC Act of 1991, ‘the objects of the MRC are, through research, development and technology transfer, to promote the improvement of the health and quality of life of the population of the Republic, and to perform such functions as may be assigned to the MRC by or under this Act’.

Health research, development and innovation are the core business of the MRC. 
The MRC is a science council and therefore also a Science, Engineering and Technology Institution (SETI).  It falls under the ambit of the DST (Department of Science and Technology) and the NSI (National System of Innovation), while having a direct line function with the National Department of Health (NDOH).

Government has agreed on 12 key outcomes for the period 2009 – 2014. For the health sector, the outcome is to ensure “A Long and Healthy Life for All South Africans”.  The Department of Health specifically has finalised the Negotiated Service Delivery Agreement (NSDA) focusing on four outputs: 
-	increasing life expectancy; 
-	decreasing maternal and child mortality rates;
-	combating HIV and AIDS and STIs, and decreasing the burden of disease from TB; 
-	strengthening health system effectiveness.
These NSDA outputs link to the Millennium Development Goals (MDGs) 4, 5 and 6, respectively, addressing child mortality, maternal health, and combating HIV and AIDS, and other diseases.

The 3-year MRC Strategic Plan 2011–2013 identified strategically important outcomes-oriented goals and objectives against which the MRC’s medium-term results can be measured and evaluated by Parliament, the National Department of Health (NDoH) and the public. The MRC Annual Performance Plan 2011 – 2012 presents the organisation’s performance indicators and targets for the current financial year and the MTEF, as well as the budget required.  The structure of this document is aligned with the Framework for Strategic Plans and Annual Performance Plans published by the National Treasury in August 2010.   

It is important to note that a strategic planning process to develop the MRC 2011 – 2015 Strategic Plan, with participation of key stakeholders and that considers all inputs, will be conducted in May/June 2011.  The current 3-year MRC Strategic Plan 2011 – 2013 is a bridge between the previous strategic plan and the new 5-year plan. While the MRC 2011 – 2012 Annual Performance Plan is directly linked to its 3-year Strategic Plan, the MTEF will certainly be influenced by the new 5-year plan.

2	Updated Situational analysis
The MRC Strategic Plan 2011 – 2013 was developed at the same time as the 2011 - 2012 Annual Plan – the information is therefore current and relevant.  Sections from the strategic plan are included below.
2.1	Performance environment
2.1.1	Health Sector
Comprehensive reviews of the health sector, including the DBSA Roadmap for Health (2009), the Lancet Series on Health in South Africa (2009) and the South African Health Review (2010), have all identified the paradox of poor health outputs and outcomes despite high health expenditure and supportive policies. The failure to curb the HIV/AIDS epidemic, together with generally weak health systems management and low staff morale in the public sector have been highlighted as major contributors to the poor health outcomes, relative to total health expenditure. This deterioration in health status has contributed to the country not making significant progress towards achieving the Millennium Development Goals (MDGs). 

In response to the huge challenges faced by the health sector to deliver cost-effective and quality care, a 10 Point Plan has been developed by the National Department of Health in the 2010/11 – 2012/13 Strategic Plan.  It further details twenty deliverables for four key areas, which aim to focus efforts on addressing the major burden of disease and improve the quality of health services.

National Department of Health 10 Point Plan for 2009-2014:

i.	Provision of Strategic leadership and creation of a Social Compact for better health outcomes; 
ii.	Implementation of a National Health Insurance Plan (NHI); 
iii.	Improving Quality of Health Services; 
iv.	Overhauling the health care system and improve its management; 
v.	Improving Human Resources Planning, Development and Management; 
vi.	Revitalization of physical infrastructure; 
vii.	Accelerated implementation of HIV & AIDS and Sexually Transmitted Infections National Strategic Plan 2007-11 and increase focus on TB and other communicable diseases; 
viii.	Mass mobilisation for better health for the population; 
ix.	Review of the Drug Policy; 
x.	Strengthening Research and Development.

During 2010, the Negotiated Service Delivery Agreement (NSDA) signed by the Minister of Health in terms of achieving Outcome 2, viz. A Long and Healthy Life for All South Africans has focussed attention on four key outputs: 

1.	Increasing life expectancy 
2.	Decreasing maternal and child mortality
3.	Combating HIV and AIDS and decreasing the burden of disease from Tuberculosis
4.	Strengthening health system effectiveness 

The MRC has a critical role to play in supporting the country’s national and provincial health departments in achieving the country’s outcomes and outputs. The 2009 Lancet Series on Health in South Africa identified the essential role of research to develop a comprehensive PHC system and enable the translation of knowledge into interventions. The authors of the series highlighted the urgent need for research to: 
•	allow decision makers to estimate local burden of disease,
•	identify and monitor impact of priority interventions both in and outside of the health sector,
•	measure the distribution and efficiency of expenditures, and 
•	evaluate the performance and efficiency of health workers. 
These areas of research expand on the focus identified by the National Department of Health’s policy on quality health care (Department of Health, 2007). 

In addition to these strategic shifts in current programmes and efforts that focus on performance in the health sector, Government has embarked on several investigations to identify longer term reforms required to ensure even development in the country. A committee has been set up to investigate the implementation of a national health insurance (NHI) scheme to ensure universal coverage of quality health care. The national planning committee has been set up to draft a long-term vision and strategic plan for the country and consider critical issues affecting South Africa’s long-term development (Presidency, 2009 & 2010). Health policy research has a critical role to play to inform these reforms. The MRC, through its researchers serving on advisory panels, is contributing to these initiatives.  For example, it has membership on the Health Data Advisory and Co-ordination Committee of the Department of Health, which is tasked to establish a baseline for health data – critical for measuring performance of the health system.
2.1.2 	National System of Innovation 
The MRC is a science, engineering, and technology institution (SETI) that fits in the National System of Innovation (NSI) as the key research council focussed on research for health. 

According to the Department of Science and Technology’s Ten-Year Plan (DST, 2008), “The government’s broad developmental mandate can ultimately be achieved only if South Africa takes further steps on the road to becoming a knowledge-based economy.” Outcome 5 of the Negotiated Delivery Agreement is ‘A skilled and capable workforce to support an inclusive growth path’. This implies that, aside from strategic development of human capital, this requires an increased investment in research and development, especially in science, engineering and technology.

The Department of Science and Technology strategy for 2010-13 identified Biotechnology and Health as an important strategic area and aims to create an enabling environment for innovation. Greater networking and collaboration (domestic and international) across all sectors (academia, science councils, industry and government) will be needed. Outcome 7 of the Negotiated Delivery Agreement is ‘Vibrant, Equitable and Sustainable Rural Communities and Food Security for All’. Research efforts to support these outcomes will include nutrition interventions, as well as research on food safety. Research on rural development will also be important. 

Partnerships with sectors other than Health and DST are also important, viz. Departments of Higher Education (Higher Education Institutions), Agriculture, Trade and Industry.  Further, MRC interaction with its sister science councils (HSRC, CSIR, etc.) has not been fully realised, and needs attention. 
2.1.3 	Clinical Research
The Academy of Science for South Africa (ASSAf) has highlighted the decline in clinical research that has occurred through cumulative disinvestment in clinical research in the past 2 decades (ASSAf, 2009). ASSAf argues for a more strategic approach to clinical research that includes clinical epidemiology, pre-clinical and clinical phase of drug development, and translational research to bridge the gap between basic science and clinical practice. The training and promotion of clinical researchers should seek to address racial and gender imbalances, and ensure that a strong intellectual leadership is built. Initiatives to maintain the supply of skilled clinical researchers, improve facilities for clinical research and increase funding for funding and strengthening translational research are needed.

Translational research ranges from testing or generating hypotheses about disease mechanisms, with the ultimate aim of accelerating the translation of basic science discoveries to useful clinical applications. Emerging and strategic research areas include Nano-medicine, Stem Cells, Synthetic Biology, Structural Biology, Systems Biology, Functional Genomics, Chronic Diseases and Telemedicine and m-Health (mobile phone applications to health).
2.1.4 	Challenges 
•	Human capacity – ageing of productive scientists, transformation imperative, the academic deficit arising from poor school education, the high demand for skilled individuals
•	Research infrastructure – equipment for research can be costly to keep up to date and maintain
•	Cost of enabling technologies 
•	Collaborations and ability to harness research capacity in academic and research organisations
•	Financial sustainability (financial model, flat-lining of baseline budget and international funding sources)

2.2	Organisational environment 

The MRC is a well established organisation that has grown over the past 40 years into an internationally, regionally and locally recognised health research organisation. Further details are in the MRC 2011 – 2013 Strategic Plan.
2.2.1	MRC Research Structures
The MRC operates through a variety of research structures that make up its intramural and extra-mural activities. This flexibility enables the MRC to harness and support expertise in academic institutions across the country as well as having capacity for national priority areas. A system of scientific review is used in all spheres with Units being reviewed every 5 years and self-initiated grants being award competitively on an annual basis. 
2.2.2	Research priorities
The MRC research priorities in recent years have been guided by the National Priority Setting Conference 2006.  Alignment with the National Department of Health and National Health Research Committee priorities is paramount and the new CEO and the SETI Review recommendations will have major inputs into this process.  The MRC will actively participate in the follow-up National Priority Setting Conference that is planned for 2011.
2.2.3	Research enablement 
The intention is to move from decaying infrastructure and atrophy in the skills base to attracting and retaining top scientists, and improving productivity. Both corporate support services and infrastructure (equipment and maintenance) are relevant. 

This will involve multifaceted efforts: 
•	Redesign organisational structure, culture and processes to support research (for example, reviewing oversight of research units, distribution of workload between the various directorates and support for the ethics review and submission process). 
•	Revitalising tools/instruments/laboratories /equipment /infrastructure, to make the MRC more globally attractive and competitive within a fast changing science and research environment. Motivate to use reserves for infrastructure and maintenance of equipment.
•	Review representation of, for example, unit directors and research staff via their forums (Unit Directors Forum (UDF) and Young Scientists Forum (YSF)), and consider capacity building and succession planning.
•	Reassess the MRC capacity development strategy to include a focus on organisational capacity to deliver on research mandate.
•	Continue the empowerment of HDU researchers via targeted support programmes.
2.2.4	Key priorities for the immediate term

•	Addressing the problem of interim leadership at CEO and Executive Management levels.

•	Coordinating the strategic planning process for finalising the MRC’s 5-year Strategic Plan in May/June 2011.  Inputs from the Board, NDOH, other key stakeholders and the SETI Report will be considered, and finalising the Research Strategy. This will consider transformation in its broader sense and address the configuration of the MRC’s research structures so that they focus optimally on health research priorities.  It will involve looking afresh at unit budgets, alignment, coordination, and importantly, implementing change management.   

•	Maintaining ongoing productivity of the MRC during this transitional period.

3.	Revisions to legislative and other mandates

There have been no significant changes to the South African Medical Research Council’s legislative and other mandates.

4	Overview of 2011/2 Budget and MTEF Estimates
4.1	Expenditure Estimates
		
R thousand	  Audited outcome  	 Revised estimate 	  Medium-term estimate 	
Statement of financial performance	 2007/08  	 2008/09 	 2009/10 	 2010/11 	2011/12 	2012/13	2013/14	
Revenue								
Tax revenue	-	-	-	-	-	-	-	
Non-tax revenue	 306,375	  335,250	317,745	     317,940	316,050	322,250	333,250	
Sale of goods and services other than capital assets, 	      278,606	      281,875	284,949	        292,000	290,000	295,000	  305,000	
of which:				 			 	
Admin fees	-	-	-	-	-	-	-	
Sales by market establishments	 278,606	  281,875	284,949	     292,000	290,000	295,000	305,000	
Other sales	-	-	-	-	-	-	-	
Other non-tax revenue	       27,769	        53,375	    32,796	          25,940	     26,050	   27,250	     28,250	
Transfers received	  221,290	  230,435	 253,835	     270,508	271,205	284,289	300,465	
Total revenue	  527,665	  565,685	 571,580	     588,448	587,255	606,539	633,715	
Expenses				 				
Current expenses	  484,820	  521,989	531,897	     575,190	579,868	605,269	632,737	
Compensation of employees 	      213,510	       232,862	   241,824	        268,200	  271,558	 288,731	    307,909	
Goods and services 	     261,643	      277,865	  279,024	        292,590	  296,309	 304,438	   312,228	

Depreciation 	           9,578	         11,176	    10,799	          14,200	    11,801	   11,950	    12,500	
Interest, dividends and rent on land	                89	                86	         250	              200	       200	       150	           100	
Transfers and subsidies	-	-	-	-	-	-	-	
Total expenses	     484,820	      521,989	531,897	        575,190	579,868	605,269	  632,737	
Surplus / (Deficit)	       42,845	         43,696	    39,683	          13,258	     7,387	     1,270	          978	

The detailed MRC Budget for 2011 – 2012 is attached as Annexure A.

4.2	Relating expenditure trends to strategic outcome oriented goals

As outlined in its 2011 – 2013 Strategic Plan, the MRC has 2 strategic goals, with five strategic objectives:

STRATEGIC GOAL 1:  	Improve Health through Research, Development and Innovation 

Strategic Objective 1: 	Prioritise and conduct research to support the 4 outputs of the health NSDA for 2010-2014

Strategic Objective 2: 	Contribute to National System of Innovation by conducting and promoting Research for Health

Strategic Objective 3: 	Translate health research

Strategic Objective 4: 	Health Research Capacity Development

STRATEGIC GOAL 2:	Establish Effective and Efficient Research Support 

Strategic Objective 5: 	Effective, Efficient and Compliant Research Support

The MRC’s biggest challenge is in supporting the country’s national and provincial health departments in achieving their performance goals, and thereby impacting on the health of the population.  The focus over the medium term is on the four NSDA output areas of NDOH, and aligned to the Ten-Point Plan priorities.  Overall, over the MTEF period, expenditure on contract research is expected to increase by 14% and the bulk of the research will be done in the NSDA area.

Two major expenditure items are salaries and payments to our research collaborators (universities, NPOs, Science Councils, etc).  Salaries are expected to increase by 7%, and will also increase as the organisation fills some of the senior positions.  Currently, salaries constitute 47% of the total expenditure, and this is expected to increase to 49% by end of 2014.

Part B: Programme and sub-programme plan
5.1	Strategic Objectives, performance indicators and annual targets.

Performance targets and indicators were set for the upcoming budget year and for the MTEF for each of the MRC’s five strategic objectives: 
STRATEGIC OBJECTIVE  1.1: PRIORITISE AND CONDUCT RESEARCH TO SUPPORT THE 4 OUTPUTS OF THE HEALTH NSDA FOR 2010-2014
1.2: CONTRIBUTE TO NATIONAL SYSTEM OF INNOVATION BY CONDUCTING AND PROMOTING RESEARCH FOR HEALTH	
OUTPUTS	PERFORMANCE MEASURE / INDICATOR 	BASELINE	TARGET
2011/12 	TARGET
2012/13 	TARGET
2013/14 	
Projects aligned with NSDA	Number of projects  	400	+5	+10	+10	
Production of new knowledge	Number of peer-reviewed publications	620 	630	650	660	
Quality of new knowledge	% in international peer reviewed journals	95%	95%	95%	95%	
Productivity	Peer reviewed publications per senior scientist (intramural)	2.3	2.3	2.3	2.3	
Collaborative Research	Number of major new collaborations (>R1m pa)	2	3	3	4	
Peer reviewed publications with Black African Scientists as primary author.	Number (%) of total	13%	15%	15%	15%	
Technical reports	Number of reports	40	45	50	50	
Responsible conduct of Research	Proportion of all research projects (human and animal) with ethical approval	100%	100%	100%	100%	
	Number of Clinical Trials not compliant with GCP	0	0	0	0	
STRATEGIC OBJECTIVE 1.3: TRANSLATE HEALTH RESEARCH	
OUTPUTS	PERFORMANCE MEASURE / INDICATOR 	BASELINE	TARGET
2011/12 	TARGET
2012/13 	TARGET
2013/14 	
Systematic Reviews	Number of reviews published/ disseminated	10	10	10	10	
Policy Briefs	Number of policy briefs	2	4	6	10	
Commercialisation of Research Outputs	Invention Disclosures	2	2	3	3	
	New Patents filed	1	1	1	1	
	Licenses Granted	1	1	1	1	
	Agreements Facilitated	2	3	3	3	
Telemedicine Products	Workstations	0	+100	+50	+50	
STRATEGIC OBJECTIVE 1.4: HEALTH RESEARCH CAPACITY DEVELOPMENT	
OUTPUTS	PERFORMANCE MEASURE / INDICATOR 	BASELINE	TARGET
2011/12 	TARGET
2012/13 	TARGET
2013/14 	
Research Capacity Development	Number of African PhD’s enrolled (intramural)	45	50	55	60	
	Number of MRC funded interns 	34	40	42	45	
	Number MRC funded Career Awardees 	9	10	10	11	
	Number of MRC funded Post Docs	11	14	16	16	
	Number of HDI’s receiving >R1m	2 	3	3	3	
	Total Value of Self-Initiated Grants	R16.92m	R18.8m	R20m	R21.5m	

STRATEGIC OBJECTIVE 2.1: EFFECTIVE, EFFICIENT AND COMPLIANT RESEARCH SUPPORT	
OUTPUTS	PERFORMANCE MEASURE / INDICATOR 	BASELINE	TARGET
2011/12 	TARGET
2012/13 	TARGET
2013/14 	
Compliance and Governance	Audit report	Unqualified Report	Unqualified Report	Unqualified Report	Unqualified Report	
Sustainable organisation	Baseline funding	R270m	R270m + CPI	R270m + CPI 	R270m + CPI	
	Leveraging of baseline funding	50/50	50/50	50/50	50/50	
	Salary expenditure	47%	48%	49%	49%	
Effective and efficient delivery	Payment turnaround time from receipt of invoice	33days	30days	30days	30days	
	Turnaround Time: Initiation and Conclusion of agreements i.e. MOU’s, SLA’s, etc.	5 months	3 weeks	3 weeks	3 weeks	
	Recruitment Turnaround Time	4 months	6 weeks	4 weeks	4 weeks	
Optimal Human Capital base	Staff Occupancy Rate	95%	98%	100%	100%	
Transformation and Development	Percentage of Disabled Staff	1%	1%	1%	1.5%	
	Number Black African Unit Directors (Extramural)	2 (out of 22)	2	3	3	
	Number Black African Unit Directors (Intramural)	2 (out of 19)	3	4	5	
	Number of Black African Chief Specialist Scientist (Intramural)	2 (out of 15)	4	5	5	
	Number of Female Scientists (Intramural)	137 (out of 195)	>105 	>105	>105	
	Amount spent on Accelerated Staff Development Programme	R600,000	R700,000	R800,000	R900,000	
	Staff with PhD (includes all MRC staff)	86 (out of 948)	90	94	100	
	Scientists with PhD (only researchers)	62 (out of 191)	66	70	74	
	Scientists with MBChB (includes all MRC staff)	32 out of 948	36	40	44	
	Salary adjustments due to benchmarking and retention	None	R5m	R5m	R5m	
	Coaching, training and development	None	R2m	R2m	R2m	

5.2	Reconciling performance targets with the Budget and MTEF

Strategic Objectives (‘Programmes’)	2011 - 2012	2012 - 2013	2013 - 2014	
	Baseline	Contracts	Total	Baseline	Contracts	Total	Baseline	Contracts	Total	
1.1 Conduct research in support of 4 Health NSDAs	149 144783	212 000000	361 144783	149 144783	233327600	382472383	154000000	238 562556	392 562556	
1.2 Contribute to NSI	44 651 192	63 788000	108 439 192	44 651 192	62 114 537	106 765729	46 330263	72 082386	118 412649	
1.3 Translate Health Research	4 507861	2 680000	7 187861	4 507861	3000000	7507861	5000000	3500000	8 500000	
1.4 Health Research Capacity Development	19 056734	1 000000	20 056734	19 056734	1 500000	20 556734	20 000000	1 500000	21 500000	
2.1 Effective, Efficient Research Support	62 039430	21 000000	83 039430	62 039430	25 926862	87 966292	64 761795	27 000000	91 761795	
	279 400000	300 468000	579 868000	279 400000	325 868999	605 268999	290 092058	342 644942	632 737000	

5.3	Performance and expenditure trends 

The allocation to research will increase over the MTEF, to ensure, amongst other things, that there is increased research in NSDA output areas.  Additional projects in this area will increase from 5 during 2012, to 10 during 2014.  The increase in research spending will be accompanied by an 8% increase in capacity development spending, over the MTEF period.

Part C: Links to other plans 
Links to the long-term infrastructure and other capital plans

Over the past three years, staff numbers in Durban have increased by 20% (150 employees).  In an attempt to address this challenge, the MRC is looking at long term solutions which include an MRC Campus in Durban.  A site has been identified at the new UKZN Medical School complex.  Furthermore, the MRC’s regional building at 491 Peter Mokaba Road in Durban has been inadequate for several years, resulting in 475m2 additional space having to be rented in a separate building (in the same road) at a cost of R46 689 per month.  The MRC proposes to increase its capacity in the current building at 491 Peter Mokaba Road by 1341m2 at a cost of R10m via building extension.  In light of the current materiality framework, MRC will have to obtain permission from the Executive Authority for this proposal.  The project will be funded from MRC reserves.

Conclusion

The Annual Performance Plan of the MRC is quite different to previous Business Plans submitted.  It is aligned to the format of the Framework for Strategic Plans and Annual Performance Plans published by the National Treasury in August 2010.  Furthermore, it is informed by the MRC’s 3-year Strategic Plan which was concurrently developed, and spanning the same MTEF.

The Annual Performance Plan reflects the organisation’s vision of aligning with and focussing on the Department of Health’s NSDA Outcome 2 (A Long and Healthy Life for All South Africans), while at the same time not forgetting its role in R&D and Innovation, and health research capacity building.  Key priorities also are the appointment of the new CEO, finalising the 5-year Strategy, and implementing the new Research Strategy, as well as maintaining MRC’s productivity during this period of transition in leadership and strategy.
 
Annexure A
 							
South African Medical Research Council 2011/2012 Budget	
 	2010/2011
Budget	2011/2012
Budget	
DETAILS			
 	Salaries	Working Cap	TOTAL	Salaries	Working Cap	TOTAL	
 	 	 	 	 	 	 	
 	 -R- 	 -R- 	 -R- 	 -R- 	 -R- 	 -R- 	
RESEARCH RELATED BUDGETS:	 	 	 	 	 	 	
MRC Centres, Groups & Units	 	 	 	 	 	 	
18 Intramural Units 	 	 	 	 	 	 	
Environment & Health	3 991 666	1 071 967	5 063 633	4 271 083	1 071 967	5 343 050	
Alcohol & Drug Abuse	3 231 427	529 914	3 761 341	3 457 627	529 914	3 987 541	
Health Promotion & Behavioural Science	3 846 864	510 818	4 357 682	4 116 144	510 818	4 626 962	
Crime, Violence & Injury 	2 907 350	588 519	3 495 869	3 110 865	588 519	3 699 384	
Clinical & Biomedical TB Research	3 904 356	454 230	4 358 586	4 177 661	454 230	4 631 891	
TB Epidemiology & Intervention	3 231 589	491 722	3 723 311	3 457 800	491 722	3 949 522	
Malaria NCRP	6 155 230	1 279 243	7 434 473	6 586 096	1 279 243	7 865 339	
Nutritional Intervention	6 065 240	695 884	6 761 124	6 489 807	695 884	7 185 691	
KZN Study 	 	200 000	200 000	 	 	0	
HIV Prevention & HIV 	6 428 024	822 584	7 250 608	6 877 986	822 584	7 700 570	
Operations: Rental Dbn building Westville	 	3 360 000	3 360 000	 	3 360 000	3 360 000	
Other Durban rentals	 	600 000	600 000	 	600 000	600 000	
Burden of Disease	4 011 032	559 624	4 570 656	4 291 804	559 624	4 851 428	
Chronic Diseases of Lifestyle	2 485 327	743 947	3 229 274	2 659 300	743 947	3 403 247	
Health Systems Research	4 414 231	529 914	4 944 145	4 723 227	529 914	5 253 141	
Biostatistics	7 785 865	1 122 095	8 907 960	8 330 876	1 122 095	9 452 971	
Gender & Health Research	2 753 136	535 764	3 288 900	2 945 856	535 764	3 481 620	
Oncology Research Unit	2 562 325	412 000	2 974 325	2 741 688	412 000	3 153 688	
Diabetes Biochemistry Division:	729 054	236 075	965 129	780 088	236 075	1 016 163	
Diabetes Research: 	523 608	80 000	603 608	560 261	80 000	640 261	
Cardiovascular  NCRP (New)	 	400 000	400 000	1 000 000 	400 000	400 000	
WHO- FIC  Collaborative Centre 	 	200 000	200 000	 	200 000	200 000	
PROMEC-mycotoxin experimental carcinogens	7 131 261	1 006 406	8 137 667	7 630 449	1 006 406	8 636 855	
Cochrane Centre	1 641 703	529 914	2 171 617	1 756 622	529 914	2 286 536	
Indigenous Knowledge Systems	2 858 034	524 635	3 382 669	3 058 096	524 635	3 582 731	
NSD and Health Priorities	 	0	0	 	4 000 000	4 000 000	
Increment in operating funds 	 	 	0	 	875 000	875 000	
Sub-Total	76 657 322	17 485 255	94 142 577	83 023 335	22 160 255	105 183 590	
 	 	 	 	 	 	 	
25 Extramural Units 	 	 	 	 	 	 	
Exercise Science & Sports Medicine 	1 170 246	576 576	1 746 822	1 252 163	576 576	1 828 739	
Assistantship posts	278 914	 	278 914	278 914	 	278 914	
Health Policy 	 	1 033 973	1 033 973	 	1 033 973	1 033 973	
Rural Public Health & Health Transition 	 	735 335	735 335	 	735 335	735 335	
Respiratory & Meningeal Pathogens 	 	834 637	834 637	 	834 637	834 637	
Traditional Medicines: UWC	 	0	0	 	50 000	50 000	
MRC/UCT Drug Discovery & Development	 	783 249	783 249	 	783 249	783 249	
Immunology of Infectious Diseases 	 	920 811	920 811	 	920 811	920 811	
Inflammation & Immunity 	481 632	1 110 132	1 591 764	515 346	1 110 132	1 625 478	
Diarrhoeal Pathogens 	 	752 078	752 078	 	752 078	752 078	
Assistantship posts	385 361	 	385 361	385 361	 	385 361	
Bone Research 	2 163 325	487 599	2 650 924	2 314 758	487 599	2 802 357	
Human Genomic Diversity & Disease 	 	506 142	506 142	 	506 142	506 142	
Molecular & Cellular Biology 	4 049 924	1 191 854	5 241 778	4 333 419	1 191 854	5 525 273	
Assistantship posts	544 753	 	544 753	544 753	 	544 753	
Bioinformatics Capacity Development 	 	1 616 200	1 616 200	 	1 616 200	1 616 200	
Liver Research 	1 362 266	0	1 362 266	 	0	0	
Human Genetics 	 	550 836	550 836	 	550 836	550 836	
Receptor Biology 	0	853 189	853 189	0	853 189	853 189	
Oesophageal Cancer: University of Cape Town	 	719 797	719 797	 	719 797	719 797	
Molecular Mycobacteriology 	 	964 434	964 434	 	964 434	964 434	
Human Ecogenetics 	188 975	 	188 975	202 203	 	202 203	
Anxiety & Stress Disorders 	 	1 217 454	1 217 454	 	1 217 454	1 217 454	
Assistantship posts	213 328	 	213 328	213 328	 	213 328	
Cross University Brain Initiative	97 518	 	97 518	104 344	 	104 344	
Medical Imaging 	 	877 531	877 531	 	877 531	877 531	
Cancer Epidemiology 	 	893 090	893 090	 	893 090	893 090	
Assistantship posts	140 000	 	140 000	140 000	 	140 000	
Inter-University Cape Heart 	806 643	1 778 124	2 584 767	 	1 778 124	1 778 124	
Assistantship posts	577 309	 	577 309	577 309	 	577 309	
Cape Heart Sub Programme	 	156 455	156 455	 	156 455	156 455	
Mineral Metabolism	 	611 026	611 026	 	611 026	611 026	
Assistantship posts	258 630	 	258 630	258 630	 	258 630	
Maternal & Infant Health Care Strategies 	 	683 761	683 761	 	683 761	683 761	
Assistantship posts	209 967	 	209 967	209 967	 	209 967	
Increases	 	 	 	 	900 000	900 000	

Sub-Total (transfer  total to operating and salaries below)	

	12 928 791	19 854 283	32 783 074	11 330 495	20 804 283	32 134 778	
 	 	 	 	 	 	 	
Health Policy - Thomas	471 511	40 000	511 511	504 517	40 000	544 517	
Health Policy Rental	 	50 000	50 000	 	50 000	50 000	
Operating and salaries	12 928 791	19 854 283	32 783 074	11 330 495	20 804 283	32 134 778	
CARISA	 	500 000	500 000	 	500 000	500 000	
MRC UNISA UL Collaboration Research	 	200 000	200 000	 	200 000	200 000	
Other Collaborations	 	1 000 000	1 000 000	 	 	 	
Universities of Technology Research Fund	 	1 000 000	1 000 000	 	1 520 000	1 520 000	
2 National Collaborative Res Programmes	 	600 000	600 000	 	600 000	600 000	
Sub-Total	13 400 302	23 244 283	36 644 585	11 835 012	23 714 283	35 549 295	
 	 	 	 	 	 	 	
Other Research Related Activities:	 	 	 	 	 	 	
    Research Development 	889 550	165 000	1 054 550	951 819	165 000	1 116 819	
CapDev/ResTrainPosts/AgencyFunding	 	7 800 000	7 800 000	 	7 800 000	7 800 000	
Career Development Awards	 	2 100 000	2 100 000	 	2 100 000	2 100 000	
Research Training Interns	2 202 556	 	2 202 556	2 356 735	 	2 356 735	
Sub-Total	3 092 106	10 065 000	13 157 106	3 308 553	10 065 000	13 373 553	
 	 	 	 	 	 	 	
Self Initiated Research Grants:	 	16 264 848	16 264 848	 	18 800 000	18 800 000	
Sub-Total		16 264 848	16 264 848		18 800 000	18 800 000	
 	 	 	 	 	 	 	
Corporate Conference Budget	 	250 000	250 000	 	250 000	250 000	
NIH Audit - annual audits	 	500 000	500 000	 	500 000	500 000	
Insurance	 	2 071 380	2 071 380	 	2 278 518	2 278 518	
Water & Rates (all campuses)	 	2 831 360	2 831 360	 	3 114 496	3 114 496	
Electricity (all campuses)	 	2 370 000	2 370 000	 	3 199 500	3 199 500	
HIV Programme/Employee Wellness	 	474 000	474 000	 	600 000	600 000	
Skills Levy	 	1 264 000	1 264 000	 	991 095	991 095	
Workmans Compensation	 	355 500	355 500	 	380 385	380 385	
Accelerated Development (Scientists and support)	600 000	 	600 000	600 000	 	600 000	
Leave provision	 	513 500	513 500	 	600 000	600 000	
Post retirement - relating to current increases	742 651	 	742 651	742 651	 	742 651	
Promotions	 	 	0	600 000	 	600 000	
Performance Bonus 	4 310 626	 	4 310 626	2 000 000	 	2 000 000	
 	5 653 277	10 629 740	16 283 017	3 942 651	11 913 994	15 856 645	
 	 	 	 	 	 	 	
SUB-TOTAL: RESEARCH RELATED	98 803 007	77 689 126	176 492 133	102 109 551	86 653 532	188 763 083	
 	 	 	 	 	 	 	
DIRECT RESEARCH AND PLATFORM 	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Technology & Innovation Directorate:	15 416 106	3 805 100	19 221 206	16 495 233	3 805 100	20 300 333	
Executive Director's salary	1 172 977	300 000	1 472 977	1 255 085	300 000	1 555 085	
PA salary	 	 	0	 	 	0	
MRC Innovation Centre	2 857 814	440 000	3 297 814	3 057 861	440 000	3 497 861	
Patent Fund	 	1 010 000	1 010 000	 	1 010 000	1 010 000	
E-HRIP unit	 	100 000	100 000	 	100 000	100 000	
Telemedicine Research and E-health	532 247	249 900	782 147	569 504	249 900	819 404	
Biomedical Informatics Research	1 651 131	434 600	2 085 731	1 766 710	434 600	2 201 310	
Web & Media Technologies	1 426 298	434 600	1 860 898	1 526 139	434 600	1 960 739	
Health Informatics	532 246	136 000	668 246	569 503	136 000	705 503	
Diabetes Research and Discovery Platform	4 426 867	350 000	4 776 867	4 736 748	350 000	5 086 748	
    Primate Unit	2 816 526	350 000	3 166 526	3 013 683	350 000	3 363 683	
 	 	 	 	 	 	 	
DELFT ALLOCATION	824 034	700 000	1 524 034	881 716	700 000	1 581 716	
 	 	 	 	 	 	 	
STRATEGIC INITIATIVES UNIT	934 051	154 000	1 088 051	999 435	154 000	1 153 435	
 	 	 	 	 	 	 	
Insurance	 	183 540	183 540	 	196 388	196 388	
Water & Rates (all campuses)	 	250 880	250 880	 	268 442	268 442	
Electricity (all campuses)	 	210 000	210 000	 	283 500	283 500	
HIV Programme/Employee Wellness	 	42 000	42 000	 	750 000	750 000	
Skills Levy	 	112 000	112 000	 	186 421	186 421	
Workmans Compensation	 	31 500	31 500	 	33 705	33 705	
Leave provision	 	45 500	45 500	 	50 000	50 000	
Post retirement - relating to current increases	65 804	 	65 804	65 804	 	65 804	
Promotions	 	 	0	200 000	 	200 000	
Performance Bonus 	878 319	 	878 319	500 000	 	500 000	
 	1 878 174	1 029 420	2 907 594	1 765 239	1 922 455	3 687 694	
SUB-TOTAL: DIRECT RESEARCH AND PLATFORM	18 118 314	5 534 520	23 652 834	19 142 189	6 427 555	25 569 744	
 	 	 	 	 	 	 	
CORPORATE GOVERNANCE & STATUTORY COSTS	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Board & -Committees	 	2 300 000	2 300 000	 	2 300 000	2 300 000	
Internal Audit Fees	 	750 000	750 000	 	750 000	750 000	
External Audit - Office of the Auditor-General	 	1 000 000	1 000 000	 	1 400 000	1 400 000	
"Whistle Blowing"- subscription and related costs	 	100 000	100 000	 	100 000	100 000	
Risk Management - assessments and other	 	200 000	200 000	 	200 000	200 000	
She audits and risk assessments	 	120 000	120 000	 	120 000	120 000	
 	 	 	 	 	 	 	
SUB-TOTAL: ORGANISATIONAL STATUTORY / OPERATIONAL REQUIREMENTS	0	4 470 000	4 470 000	0	4 870 000	4 870 000	
 	 	 	 	 	 	 	
PROFESSIONAL  SUPPORT DIRECTORATES	 	 	 	 	 	 	
Executive Research Directorate:	6 707 921	4 096 402	10 804 323	7 177 475	4 096 402	11 273 877	
Vice-President : Research's salary	1 203 983	350 000	1 553 983	1 288 262	350 000	1 638 262	
PA salary	256 284	 	256 284	274 224	 	274 224	
Office of International Affairs	373 055	88 000	461 055	399 169	88 000	487 169	
Management Info & Knowledge Systems	682 617	100 000	782 617	730 400	100 000	830 400	
 - Fixed/Statutory/Licence Costs	 	757 000	757 000	 	757 000	757 000	
Executive Manager - Capacity Development	889 550	200 000	1 089 550	951 819	200 000	1 151 819	
Snr Manager - Research Admin	628 992	 	628 992	673 021	 	673 021	
Research Management	1 756 620	180 000	1 936 620	1 879 583	180 000	2 059 583	
Research Integrity Office	 	120 000	120 000	 	120 000	120 000	
Research Administration	 	900 000	900 000	 	900 000	900 000	
Information Services	916 820	350 000	1 266 820	980 997	350 000	1 330 997	
 - Fixed/Statutory/Licence Costs	 	1 051 402	1 051 402	 	1 051 402	1 051 402	
 	 	 	 	 	 	 	
Information and Technology Services Directorate	4 871 172	4 332 978	9 204 150	5 212 154	4 598 486	9 810 641	
IT Services (Excludes KZN Region)	4 871 172	220 000	5 091 172	5 212 154	220 000	5 432 154	
 - Licence Costs and other.	 	3 792 978	3 792 978	 	4 058 486	4 058 486	
IT Services (KZN Region)	 	320 000	320 000	 	320 000	320 000	

Corporate and Public Affairs Directorate	3 593 077	1 502 000	5 095 077	3 844 592	1 517 000	5 361 592	
Executive Manager' salary	856 959	186 000	1 042 959	916 946	186 000	1 102 946	
General	2 736 118	 	2 736 118	2 927 646	 	2 927 646	
Communication:	 	 	 	 	 	 	
Annual Report	 	200 000	200 000	 	215 000	215 000	
MRC News	 	135 000	135 000	 	135 000	135 000	
MRC Web Office	 	50 000	50 000	 	50 000	50 000	
MRC Studio	 	110 000	110 000	 	110 000	110 000	
News & Media Relations:	 	 	 	 	 	 	
Media Liaison	 	106 000	106 000	 	106 000	106 000	
Photography	 	66 000	66 000	 	66 000	66 000	
Admin budget (Allocated to Exec Manager's Office)	 	283 000	283 000	 	283 000	283 000	
Research Translation & Implementation Initiative	 	66 000	66 000	 	66 000	66 000	
21 and 30 Years Awards	 	100 000	100 000	 	100 000	100 000	
Branding, marketing and stakeholder strategy	 	200 000	200 000	 	200 000	200 000	
 	 	 	 	 	 	 	
Office of the President	4 393 310	1 760 000	6 153 310	4 700 842	1 760 000	6 460 842	
President's salary	1 693 036	400 000	2 093 036	1 811 549	400 000	2 211 549	
Office of the President (Includes Strategic Planning costs)	907 906	340 000	1 247 906	971 459	340 000	1 311 459	
Legal services	1 792 368	740 000	2 532 368	1 917 834	740 000	2 657 834	
MRC Year-end function	 	280 000	280 000	 	280 000	280 000	
 	 	 	 	 	 	 	
Finance and Contracts	8 070 005	1 250 000	9 320 005	8 634 905	1 765 000	10 399 905	
Executive Director's salary	1 131 650	200 000	1 331 650	1 210 866	200 000	1 410 866	
PA salary	284 475	 	284 475	304 388	 	304 388	
AFS pension fund	 	90 000	90 000	 	95 000	95 000	
Finance Division:	3 680 576	 	3 680 576	3 938 216	 	3 938 216	
Finance Division Admin	 	200 000	200 000	 	280 000	280 000	
JDE Licence	 	260 000	260 000	 	680 000	680 000	
JDE Consultant Costs-on going maintenance costs	 	120 000	120 000	 	120 000	120 000	
Bank Charges & FNB Internet Charges	 	220 000	220 000	 	230 000	230 000	
Contracts & Budget Management Office Admin	2 973 304	160 000	3 133 304	3 181 435	160 000	3 341 435	
 	 	 	 	 	 	 	
Operations and Facilities	9 125 919	5 068 000	14 193 919	9 764 733	5 403 160	15 167 893	
Executive Director's salary	1 131 650	280 000	1 411 650	1 210 866	280 000	1 490 866	
PA salary	281 655	 	281 655	301 371	 	301 371	
Operations Admin (include overnight bag)	7 712 614	400 000	8 112 614	8 252 497	428 000	8 680 497	
Cleaning, maintenance, buildings, etc.	 	2 000 000	2 000 000	 	2 140 000	2 140 000	
Security	 	2 388 000	2 388 000	 	2 555 160	2 555 160	
 	 	 	 	 	 	 	
Human Resources:	4 183 056	2 017 350	6 200 406	4 475 870	1 877 450	6 353 320	
HR General 	 	100 000	100 000	0	100 000	100 000	
HR Recruitment	467 320	127 200	594 520	500 032	127 200	627 232	
Payroll	583 163	212 000	795 163	623 984	212 000	835 984	
HR Services / Policies	1 154 582	300 000	1 454 582	1 235 403	300 000	1 535 403	
HR Transformation & Development	1 145 467	188 150	1 333 617	1 225 650	188 150	1 413 800	
National Centre for Occupational Health	459 469	 	459 469	491 632	 	491 632	
MRC Study Support	 	200 000	200 000	 	200 000	200 000	
HR System licence / Consulting	 	430 000	430 000	 	460 100	460 100	
Reward online	 	20 000	20 000	 	20 000	20 000	
JExpert	 	320 000	320 000	 	150 000	150 000	
Performance Management System	373 055	120 000	493 055	399 169	120 000	519 169	
 	 	 	 	 	 	 	
Pretoria Regional Office	443 310	296 800	740 110	474 342	296 800	771 142	
Administration	443 310	296 800	740 110	474 342	296 800	771 142	
 	 	 	 	 	 	 	
Durban Regional Office:	1 133 581	289 380	1 422 961	1 212 932	289 380	1 502 312	
Administration	1 133 581	289 380	1 422 961	1 212 932	289 380	1 502 312	
 	 	 	 	 	 	 	
Insurance	 	367 080	367 080	 	367 080	367 080	
Water & Rates (all campuses)	 	501 760	501 760	 	551 936	551 936	
Electricity (all campuses)	 	420 000	420 000	 	567 000	567 000	
HIV Programme/Employee Wellness	 	84 000	84 000	 	750 000	750 000	
Skills Levy	 	224 000	224 000	 	495 975	495 975	
Workmans Compensation	 	63 000	63 000	 	67 410	67 410	
Vacant Post Pool/Adjustments	7 564 763	 	7 564 763	2 000 000	 	2 000 000	
Leave provision	 	91 000	91 000	 	100 000	100 000	
Post retirement/leave- relating to current increases	949 064	 	949 064	500 000	 	500 000	
Accelerated Development Programme	600 000	 	600 000	600 000	 	600 000	
Performance Bonus Professional Support Services	1 781 014	 	1 781 014	1 000 000	 	1 000 000	
 	10 894 841	1 750 840	12 645 681	4 100 000	2 899 401	6 999 401	
SUBTOTAL : PROFESSIONAL SUPPORT	53 416 192	26 833 750	80 249 942	49 597 846	29 373 079	78 970 925	
 	 	 	 	 	 	 	
SUPPORT AND RESEARCH PROVISIONS	 	 	 	 	 	 	
Small Building Alterations	 	500 000	500 000	 	500 000	500 000	
Maternity Leave	100 000	 	100 000	100 000	 	100 000	
 	 	 	 	 	 	 	
SUB-TOTAL : SUPPORT AND RESEARCH PROVISIONS	100 000	500 000	600 000	100 000	500 000	600 000	
 	 	 	 	 	 	 	
TOTAL	170 437 513	110 557 396	280 994 909	170 949 585	122 954 167	293 903 752	

Income							
Baseline Allocation 			237 288 596			237 900 000	
Investment Income/Interest			19 438 312			17 000 000	
Skill levy recovered			960 000			1 000 000	
Sundry Income			4 500 000			4 500 000	
Overhead Recovery from contracts			18 808 000			19 000 000	
Total Income			280 994 908			279 400 000	
Shortfall (to get National Treasury's permission to use the Reserves)			0			-14 503 752	

							

Key assumptions							
Salary increases - 7%							

Annexure B: Acronyms 

AIDS	Acquired Immunodeficiency Syndrome	
ASSAf	Academy of Science for South Africa	
ATM (IKS)	African Traditional Medicine	
CARISA	Cancer Research Initiative of South Africa	
CEO	Chief Executive Officer	
CFO	Chief Financial Officer	
CPI	Consumer Price Index	
DBSA	Development Bank of South Africa	
DST	Department of Science and Technology	
e-HRIP	eHealth Research and Innovation Platform	
GCP	Good Clinical Practice	
GLP	Good laboratory Practice	
HDU	 Historically Disadvantaged Universities	
HEI	Higher Education Institutions	
IKS	Indigenous Knowledge Systems	
MDG	Millennium Development Goals	
MOU	Memorandum of Understanding	
MRC	Medical Research Council	
MTEF	Medium-term Expenditure Framework	
MTSF	Medium-term Strategic Framework	
NCRP	National Collaborative Research Programme	
NDoH	National Department of Health	
NHI	National Health Insurance	
NPO	Non Profit Organisation	
NSDA	Negotiated Service Delivery Agreement	
NSI	National System of Innovation	
PFMA	Public Finance Management Act	
PHC	Primary Health Care	
PROMEC	Programme on Mycotoxins and Experimental Carcinogenesis	
R&D	Research and Development	
SETI	Science, Engineering, Technology and Innovation	
SLA	Service Level Agreement	
STI	Sexually Transmitted Infection	
TB	Tuberculosis	
UDF	Unit Directors Forum	
UKZN	University of KwaZulu-Natal	
VCT	Voluntary Counselling and Testing	
YSF	Young Scientists Forum

References:  

Academy of Science for South Africa (2009). Consensus report of revitalising clinical research in South Africa: A study on clinical research and related training in South Africa. Pretoria: Academy of Science for South Africa. 

Department of Science and Technology (2008). The Ten-Year Plan for Science and Technology. Pretoria: Department of Science and Technology.

Department of Science and Technology (2010). Corporate Strategy 2010-2013. Pretoria: Department of Science and Technology.

Development Bank of Southern Africa (2008). A Roadmap for the Reform of the South African Health System. A process convened and facilitated by the Development Bank of Southern Africa.

Fonn S, Paradath A (Eds) (2010). South African Health Review. Durban: Health Systems Trust. 

Lancet Series on Health in South Africa (2009). 

Presidency (2009). Green Paper: National Planning Commission. Pretoria: The Presidency. 

Presidency (2010). Revised Green Paper: National Planning Commission. Pretoria: The Presidency. 

Republic of South Africa. National Treasury. (2007) Framework for Managing Programme Performance Information. Pretoria: National Treasury. (Available online at http://www.treasury.gov.za/publications/guidelines/FMPI.pdf )