Presentation to the Portfolio Committee on Communications on NEMISA s Annual Report for 2011/2012

Transcription

1 Presentation to the Portfolio Committee on Communications on NEMISA s Annual Report for 2011/2012

2 1. Mandate NPC established to address equity of access to broadcasting industry Mandate of the DoC To create a vibrant ICT sector that ensures that all South Africans have access to affordable and accessible ICT services in order to advance socio-economic development goals and support the African Agenda and contribute to building a better world. Furthermore, one of the strategic goals of the DoC is to Accelerate the socio-economic development of South Africans by increasing access to, as well as the update and usage of, ICT s through partnerships with businesses and civil society and the three (3) spheres of government. One of the strategic objectives linked to this strategic goal is Contribute to increasing ICT skills base in South Africa and increase access to, and uptake and usage of ICT s. (DoC Strategic Plan ). 2

3 2. Strategic Focus Areas 3

4 Environmental changes Achieve more with less; Impact of global financial crisis; Contracting revenue vs demands on the fiscus; Evolving ICT sector; New national demands; Demands of a knowledge and information society; Duplication of scope; Significant transformation of broadcast sector-profile of the public broadcaster, community radio and Residual challenges 4

5 CONTENTS /12 ANNUAL REPORT Corporate Governance Report on Human Resources Report on Performance /12 ANNUAL FINANCIAL STATEMENTS 3. 1 ST QUATERLY FINANCE REPORT

6 Corporate Governance Adherence to Codes of Good Corporate Governance (PFMA, Companies Act as amended, Protocol on C/G for SOE s, King Report); Board Charter; Memorandum and Articles of Association; Strategic and Annual Plans; Periodic reviews management performance and; Ongoing assessment of policies 6

7 Human Capital Core staff competencies; Balance of academic and experiential training; Resignation of CEO and key staff in Animation and Graphic Design; Challenges of scarcity of core skills; Change management process to align staff to strategy, reviewing policies and procedures; Compliant with Employment Equity and; Outsourced security, internal audit. 7

8 Performance Report Enrolment; Accreditation; Industry Development; Production; Stakeholder management and; Expanding student reach 8

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22 CONTENTS /12 ANNUAL REPORT /12 ANNUAL FINANCIAL STATEMENTS BARC REPORT REPORT OF THE DIRECTORS STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL PERFORMANCE CASH FLOW 1. 1 ST QUATERLY FINANCE REPORT

23 BARC Chairperson: Gaitsiwe Lenepa BARC CHARTER (Adopted Section 55(1)(a) Of The PFMA And TR 27.1) Evaluation Of The Annual Financial Statements Adopted Risk Management Internal Control Functioning Internal Audit Combined Assurance BARC has taken into account three pillars of assurance (Management, Internal audit and external audit in terms of King III) Legal And Regulatory Compliance 23

24 REVIEW OF ACTIVITIES OPERATING RESULTS The company's net deficit amounted to R5,437,427 (2011: R 4,289,635) for the year ended 31 March REVIEW OF OPERATIONS Total income received for the year (in the form of government funding, interest receivable and sundry income) amounted to R35,675,895 (2011 R34,939,482). These funds are recognised on a systematic basis over the periods necessary to match the grants with the related costs which they are intended to compensate. Operational expenditure amounted to R41,113,322 (2011 R39.229,117) for the period. The deficits is due to increased Direct and Overhead costs such as property rental costs, property rates and taxes which could not be supplemented by the baseline allocation. NEMISA received an additional income in a form of projects which were signed off at the end of the last quarter of the financial year. Although this is income minimal, it assists in supplementing the deficit. (note 23) 24

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28 REPORT ON THE FINANCIAL STATEMENTS In my opinion, the financial statements present fairly, in all material respects, the financial position of NEMISA as at 31 March 2012, and its financial performance and cash flows for the year then ended in accordance with the SA Standards of GRAP and the requirements of the Public Finance Management Act, 1999( Act No.1 of 1999) (PFMA). REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion. Predetermined objectives Compliance with laws and regulations Internal control 28

29 CONTENTS /12 ANNUAL REPORT /12 ANNUAL FINANCIAL STATEMENTS 3. 1 ST QUATERLY FINANCE REPORT

30 Quarterly Finance Report April to Income June 2012 Period YTD March 2012 Quarter 1 Actual Budget Variance APR JUN R R R Appropriation income receivable Other income ( ) Fees receivable - Students Total Income ( ) ( ) Direct expenditure ( ) ( ) ( ) Gross Income Overhead expenditure ( ) ( ) ( ) Net income before non cash items ( ) Other Expenditure ( ) Finance costs (Deficit) / Surplus for the period ( ) 30

31 Quarterly Finance Report April to June 2012 Appropriation amount received from the DoC R11 million (April to July) Other income recognised DoC project : Community Radio project (R ) DoC project: National Digital Repository (R ) Direct Expenditure R1.4 million Overhead Expenditure R 6 million 31

32 Quarterly Finance Report April to June JUNE BUDGET - JUNE 2012 ACTUAL - JUNE 2011 ACTUAL - JUNE DIRECT EXPENDITURE OVERHEAD EXPENDITURE 32

33 THANK YOU 33