NATIONAL YOUTH DEVELOPMENT AGENCY QUARTER 3 PERFORMANCE AND FINANCIAL ANALYSIS 2012/2013 PRESENTATION TO PARLIAMENT DATE: 26 MARCH 2013

Transcription

1 NATIONAL YOUTH DEVELOPMENT AGENCY QUARTER 3 PERFORMANCE AND FINANCIAL ANALYSIS 2012/2013 PRESENTATION TO PARLIAMENT DATE: 26 MARCH 2013

2 PRESENTATION OUTLINE SECTION PART A CONTENTS NYDA Q3 Performance Report PART B Third Quarter Financial Analysis PART C Response to Questions 1

3 PART A: NYDA Q3 PERFORMANCE 2012/2013 2

4 KPA 1: ECONOMIC PARTICIPATION 3

5 KPA 1: Economic Participation: 2012/2013 STRATEGIC OBJECTIVE To enhance the participation of young people in the economy aimed at increasing job creation, entrepreneurship participation, skills development, business and funding opportunities To provide financing support to young entrepreneurs KEY PERFORMANCE INDICATOR Number of young entrepreneurs supported through non-financial support interventions (entrepreneurship awareness, business management skills, business consultancy services, mentorship, market linkages) Number of new business created through economic development (entrepreneurship awareness, business management skills, business consultancy services, mentorship, market linkages) Number of young entrepreneurs funded through economic development (entrepreneurship awareness, business management skills, business consultancy services, mentorship, market linkages) Value of funding accessed through economic development programmes(entrepreneurship awareness, business management skills, business consultancy services, mentorship, market linkages) Jobs created through economic development (entrepreneurship awareness, business management skills, business consultancy services, mentorship, market linkages) 2012/2013 TARGET 20,000 young entrepreneurs supported 500 new business created 400 young entrepreneurs funded R30 million worth of funding accessed Quarter-3 Target Actual 5,000 young 3,639 young entrepreneurs entrepreneurs 125 new business created 100 young entrepreneurs funded R7.5 million worth of funding accessed 800 jobs created 200 jobs created Cumulative Total 19,144 young entrepreneurs new business created 159 young entrepreneurs funded R3,219, worth of funding accessed 266 jobs created 337 young entrepreneurs funded R6,555, jobs created Value of business opportunities accessed by youth entrepreneurs R5 million worth of business opportunities accessed R1.25million worth of business opportunities accessed R5,744, worth of business opportunities accessed R11,263,

6 Conti STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR To provide business support to young people Number of entrepreneurs accessing business opportunities through(entrepreneurship awareness, business management skills, business consultancy services, mentorship, market linkages) 2012/2013 TARGET 50 entrepreneurs accessing business opportunities Target 13 entrepreneurs accessing business opportunities Quarter-3 Actual 83 entrepreneurs accessing business Cumulative Total 100 entrepreneurs accessed business opportunities Implementation of special projects aimed at scaling up youth enterprise support to young entrepreneurs Number of projects supported through Ithubalentsha Micro-Enterprise Project Number of projects supported through the Green Economy Project 36 projects supported 50 projects supported 9 projects supported 13 projects supported 2 projects supported 0 projects supported 2 projects supported 0 projects supported To facilitate and provide employment opportunities to young people Number of jobs facilitated through placement in job opportunities 1,100 jobs facilitated 275 jobs facilitated 95 jobs facilitated 625 jobs facilitated To provide business support information to young people Number of communications campaigns to educate youth about NYDA business support programmes implemented 3 communication campaigns 1 communicatio n campaign 1 communication campaigns 5 communication campaign To design and implement specific interventions for young women, persons with disabilities and youth in rural in rural areas Number of outreach activities targeted at women, persons with disabilities and youth in rural areas 4 outreach activities 1 outreach activities 1 outreach activities 1 outreach activities 5

7 Number of young entrepreneurs supported through non-financial support interventions PROVINCIAL BREAKDOWN PROVINCE Q-3 GP NW 27 FS 149 EC 146 WC 467 LP 326 NC 17 KZN 652 MP 805 TOTAL PROVINCIAL BREAKDOWN TOTAL GP MP 805 NW 27 FS 149 EC 146 WC 467 LP 326 KZN 652 NC 17 GP NW 27 FS 149 EC 146 WC 467 LP 326 NC 17 KZN 652 MP 805 6

8 EQUITY DISTRIBUTION Description Number Disabled 8 Male Female White 521 PDI EQUITY DISTRIBUTION PDI Disabled 8 Male Female Disabled 8 Male Female White 521 PDI White 521 7

9 Jobs created through economic development PROVINCE Q-3 GP 44 NW 0 FS 1 EC 55 WC 9 LP 28 NC 0 KZN 58 MP 71 TOTAL PROVINCIAL BREAKDOWN GP NW FS EC WC LP NC KZN MP TOTAL 8

10 EQUITY DISTRIBUTION Description Number Person's with Disability 1 Male 91 Female 175 White 10 PDI EQUITY DISTRIBUTION Person's with Disability Male Female White PDI 9

11 10

12 KPA 2: Education and Skills Development: 2012/2013 STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2012/2013 TARGET Target Quarter-3 Actual Cumulative Total To facilitate and implement education opportunities in order to improve the quality education attainment for the youth Number of young people enrolled in the NYDA Matric (Grade 12) rewrite programme 2,000 young people No target 0 young people 0 young people Number of youth who receive bursaries 10 youths No target 0 youth 0 youth Number of youth who receive scholarship 10 youths No target 1 youth 1 youth To facilitate and implement technical training Number of youth attended technical skills training programme 2,000 youths 500 youths 346 youth 830 youths To facilitate and implement life and professional skill training programme Number of youth attended job preparedness programme 12,000 youths 3,000 youths 3,076 youths 11,930 youths Number of youths attended life skills training programme 3,000 youths 750 youths 39 youths 1,813 youths 11

13 Number of Youth Attended Job Preparedness Programme PROVINCIAL BREAKDOWN PROVINCE Q-3 EC 607 GP 978 KZN 548 NW 143 WC 233 NC 0 MP 106 FS 461 LP 0 TOTAL 3,076 MP 106 PROVINCIAL BREAKDOWN NW 143 NC 0 WC 233 LP 0 TOTAL 3,076 KZN 548 FS 461 EC 607 GP

14 EQUITY DISTRIBUTION Description Number Female Male Person's with Disability 0 PDI EQUITY DISTRIBUTION White 52 White 52 Female PDI Person's with Disability 0 Male Female Male Person's with Disability 0 PDI White 52 13

15 14

16 KPA 3: Policy and Research: 2012/2013 STRATEGIC OBJECTIVE To create and produce youth development information and knowledge that informs the public sector, private sector and civil society in developing policy, planning, implementation and review of all [100%] of their programme related to government priorities KEY PERFORMANCE INDICATOR Number of youth development information and knowledge generated by the NYDA through internal resources 2012/2013 TARGET 62 publications (research, evaluation and policy reports; KM publications) Target 15 publications (Research, evaluation and Policy reports; KM publications) Quarter 3 Actual Cumulative Total 19 publications 60 publications To make youth development information and knowledge accessible and available to the public sector, private sector and civil society to inform policy development, planning, implementation and review of all [100%] of their programmes related to government priorities Number of youth development information and knowledge access points in the private, NGO and public sector Number of youth development information and knowledge packaged by NYDA and made available in the different platforms for different stakeholders 8 information dissemination points(partnerships, NYDA dissemination platforms) 59 (research reports; KM publications; policy and KM seminars) 2 information dissemination points (partnerships, NYDA dissemination platforms) 14 (Research reports; KM publications; policy & KM Seminars) 0 information dissemination points 14 information and knowledge publications 15 information dissemination points 49 information and knowledge publications Number of requests for youth development information and knowledge products 46 information and knowledge products request(policy inputs, evaluations, KM seminars) 14 information and knowledge products request (Policy inputs, evaluations, KM seminars) 15 information and knowledge request 38 information and knowledge request 15

17 Conti STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2012/2013 TARGET Number of copies (hard and electronic) produced by research & policy cluster and distributed to stakeholders 5,000 hard and electronic copies distributed (IYDS, NYP Guidelines, Status of Youth Report, Journal) Target Quarter 3 1,250 hard and electronic copies distributed (IYDS, NYP guidelines, Status of Youth Report, Journal) Actual 5,829 hard and electronic copies Cumulative Total 24,461 hard and electronic copies To facilitate youth development as a recognised profession Number of youth development practitioners who obtained unit standard credits towards the Youth Work Qualification 100 practitioners trained on youth work qualification unit standards 20 practitioners trained on youth work qualification unit standards 26 practitioners 76 practitioners Code of ethics developed for youth work A code of ethics A code of ethics ToR s developed awaiting SAYWA code of ethics for review Draft ToR developed for Code of Ethics To provide and facilitate capacity building of youth development practitioners Number of capacity building interventions conducted for the youth development sector to increase best practice 15 youth development sector interventions 3 youth development sector interventions 10 interventions 35 interventions 16

18 17

19 KPA 4:Partnerships and Stakeholder Management: 2012/2013 STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2012/2013 TARGET To lobby key stakeholders and institutions in the public, private and civic society sectors, including international donor agencies to work with, and support the work of Youth development initiatives Number of government departments lobbied to establish youth directorates and implement Youth Development Programs Number of Provincial Government Departments lobbied to establish youth directorates and implement Youth Programs 10 Government Departments 18 Provincial Government Departments lobbied to establish youth directorates Target 3 government departments 6 Provincial Government Departments Quarter 3 Actual 1 government department 13 provincial government departments Cumulative Total 9 government department 18 provincial government departments Number of Municipalities lobbied 16 Municipalities lobbied to establish Youth Councils 4 Municipalities 3 municipalities 19 municipalities Number of hosted dialogue sessions with young people on Racial Integration, Economic Participation, Youth Work, Health and Well, National Youth Service and Social Cohesion 6 dialogue sessions 1 Health and Well Being Dialogue 1 National Youth Service Dialogue, 3 dialogue sessions 10 dialogue sessions Number of engagements with the Private Sector 20 Engagements 5 Engagements 8 engagements 28 engagements 18

20 Conti STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2012/2013 TARGET Target Quarter 3 Actual Cumulative Total Number of young women Mobilised to participate in women development programmes 1,000 young women 350 Young women mobilised 811 young women mobilised 1,018 young women mobilised Number of partnerships established with government, civil society and the private sector 15 partnerships established 4 Partnerships 2 partnerships 10 partnerships To enhance relationships with Current Partners Number of Recognition Events 1 Recognition Event No Target 0 recognition events 0 recognition events To host a Fund Raising Event/Initiative Number of Annual Fund-Raising Events/Initiatives 1 Fund-Raising Events/Initiatives 1 Fund-Raising Events/Initiativ es 0 fund-raising events/initiatives 0 fund-raising events/initiatives 19

21 KPA 5: Communication and Youth Advisory Services 20

22 KPA 5: Communication and Youth Advisory Services: 2012/2013 STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2012/2013 TARGET Target Quarter 3 Actual Cumulative Total To provide career guidance services Number of youths provided with one on one career guidance sessions 2,600 youths 650 young people 1,130 young people 4,506 young people Number of youths provided with group career guidance sessions 397,400 youths 99,350 young people 97,041 young people 436,375 young people To provide access to information regarding products and services of the NYDA and referrals to other agencies Number of people receiving 460,000 young information and/or referrals from people NYDA access points 115,000 young people 89,236 young people 442,615 young people Number of NYDA beneficiary stories published 40 beneficiaries stories 10 beneficiary stories 73 beneficiary stories 114 beneficiary stories Number of portal visits to the NYDA website 330,000 portal visits 82,000 portal visits 133,315 portal hits 430,615 portal hits 21

23 KPA 6: NATIONAL YOUTH SERVICE AND SOCIAL COHESION 22

24 KPA 6: NYS & Social Cohesion: Performance information 2012/2013 STRATEGIC OBJECTIVE To build a culture of community service amongst the youth at the same time providing young people with the opportunity of learning skills and culture of working whilst serving their communities KEY PERFORMANCE INDICATOR Number of young people enrolled in NYS NYDA projects 2012/2013 TARGET Target Quarter 3 Actual Cumulative Total 15,000 youth 5,000 youths 1,535 youths 7,507 youths Number of institutions registered 15 institutions 5 Institutions 1 institutions 11 institutions To promote opportunities for young people to serve their communities Number of young people who participate in youth leadership programme Number of young people participating in the Youth Month Proud to Serve Campaign 2,000 youths 500 youths 2,143 youths 2,143 youths 11,000 youths No Target 2,182 youths 12,687 youths To create a platform for young people to participate in and benefit from democratic processes and promote social cohesion Number of young people participating in the Youth Month commemoration event/s 10,000 youths No Target 15,335 youths 15,335 youths 23

25 Number of young people participating in the Youth Month Proud to Serve Campaign PROVINCIAL BREAKDOWN Province Q-3 LP 288 MP EC 298 GP NC 149 NW KZN 286 FS WC 220 TOTAL PROVINCIAL BREAKDOWN LP MP EC GP NC NW KZN FS WC TOTAL 24

26 KPA 7: Sports Recreation and Arts KPA 8: Health and Well-Being 25

27 KPA 7: Sports Recreation and Arts: 2012/2013 STRATEGIC OBJECTIVE To promote youth participation in sport, and arts and culture activities so as to ensure that there is a spirit of nation building and shared values for the country amongst all youths KEY PERFORMANCE INDICATOR Number of young people participated in sports, arts and culture activities 2012/2013 TARGET 2,000 young people Target 1,000 young people Quarter 3 Actual 2,313 young people Cumulative Total 2,381 young people KPA 8: Health and Well-being: 2012/2013 STRATEGIC OBJECTIVE To increase awareness on the healthy lifestyles that promote good health practices amongst the youth of South Africa, including dangers of substance abuse, unprotected sex, nutrition, sexual transmitted diseases and the impact of HIV infection and AIDS among young people in South Africa KEY PERFORMANCE INDICATOR Number of young people participating in healthy lifestyle programmes 2012/2013 TARGET 4,000 young people Quarter 3 Cumulative Total Target Actual 1,000 young 0 young people 3,821 young people people 26

28 KPA 9: GOVERNANCE AND ADMINISTRATION 27

29 KPA 9: Governance and Administration: 2012/2013 STRATEGIC OBJECTIVE To provide administrative and operational support to service delivery Efficient and effective utilisation of resources through provision of judicious governance, technology and systems, business operations systems, human capital, financial management systems so that adhere to relevant legislative requirements for public funded entities KEY PERFORMANCE INDICATOR Number of NYDA local youth information dissemination and access points Functional integrated IT systems Quarter /2013 TARGET Cumulative Total Target Actual 20 access points 5 access points 1 access points 46 access points Completed Project Management System, Asset Management System CRM, LMS, VMS, SharePoint Solution and GP ERP - Complete phase 4 CRM project and VMS - Complete phase 2 Loan Management system SQL production CRM SQL production servers have been servers have been installed and the installed and the databases are being databases are being migrated. All JOBS migrated. changes have been Great Plains completed and are successfully upgraded on production. to GP 2010 and Awaiting guidance migrated to the new from JOBS on the NYDA domain. implementation of ICT asset management the USSD/SMS system implemented. functionality. Review SharePoint of BOSS, implementation Mentorship, training of staff Corporate completed. Partnerships on Current PTS migration existing CRM to new Domain functionality and completed, but business processes. upgrades needs to be ICT is scoping a done to ensure project to replace compatibility to new the GP-Trader-VMS Windows 2008 and integration with inhouse managed SQL. BizTalk integration. 28

30 Conti STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR Number of employees and Board members attending NYDA capacity building programmes 2012/2013 TARGET Quarter 3 Target Actual 350 employees 50 employees & 176 employees and Board members Board members Cumulative Total 624 employees and Board members Enhanced Performance Management system to support organisational performance The new NYDA Half yearly performance performance management framework review s and processes conducted implemented Performance Agreement s developed and signed for new staff Half year reviews are currently underway. Performance agreements are being developed for this financial year. The personal development plans are part of the performance agreement template. Half year reviews are currently underway. Performance agreements are being developed for this financial year. The personal development plans are part of the performance agreement template. To ensure that internal audit assurance and consulting activities add value to the organisation s operations and improve the effectiveness of organisations s risk management, control and To ensure compliance with all applicable statutes and policies Functional internal audit Unqualified NYDA Annual Reports developed Acceptable internal controls Unqualified Annual Report Statutory compliance and IT completed 5 Branch Reviews and Supply Chain Management No Target None None 10 internal audits conducted [Corporate Partnerships, National Youth Awards, Performance Bonus, Corporate Events & Events Management, 5 branch reviews, and Supply Chain Management] 29

31 KPA 10:National Youth Fund 30

32 KPA 10: National Youth Fund: 2012/2013 STRATEGIC OBJECTIVE To mobilise and leverage financial contributions from third parties to implement programmes outlined in the NYDA ACT so as to increase the numbers of young people benefitting from youth development programmes in the country KEY PERFORMANCE 2012/2013 Quarter 3 Cumulative Total INDICATOR TARGET Target Actual Value of funds raised R50 million R15 million R26,998, R33,918,

33 PART B: 3 rd Quarter Financial Analysis 32

34 MANAGEMENT ACCOUNTS EXPENDITURE Year to date EXPENDITURE Actual Budget Variance Variance % Administration % Communication and PR % Employee costs: Support % Employee costs: Projects % Information Technology % Outsourcing & External Services % Overheads % Seminars & Training % Travel & Entertainment % Project disbursements % Donor funding disbursements % Interest Paid % Write offs: Loans % Impairment: Loans % Impairment: Debtors % % 33

35 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS Donor funding disbursements, R , 0% Write offs: Loans, R , 0% Penalties and interest, R , 0% Impairment: Loans, R , 5% Impairment: Debtors, R , 0% Total operating costs, R , 37% Total project disbursements, R , 58% 34

36 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS (continued) Operating expenditure Actual Budget - 35

37 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: Operating expenditure - Overhead costs Repairs and maintenance, R , 1% Security, R , 9% Telephones, R , 8% Depreciation, R , 20% Office Utilities and Cleaning, R , 31% Rental - Office Buildings, R , 25% Rental - ICT equipment, R , 6% Provident fund admin fees, R , 0%

38 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: Operating expenditure - Administration costs Seminars & Training, R , 5% Travel & Entertainment, R , 18% Administration, R , 6% Communication and PR, R , 35% Outsourcing & External Services, R , 10% Information Technology, R , 26%

39 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: Operating expenditure analysis Administration: Courier and Postage The overspending (R246k) resulted from high courier costs of the marketing collateral for the Limitless Youth campaign as well as the distribution of new computers and laptops that needed to be replaced after the upgrade of NYDA s domain. General administration The overspending (R184k) was a result of under budgeting of expenses relating to the printing and photocopiers. Motor vehicle expenses The overspending (R53k) resulted from unexpected maintenance that needed to be undertaken to one of the vehicles (Mercedes YAC vehicle). Office stationery Overspent (R71k) on internal printing of training manuals and tender documents that were not anticipated during the budgeting process. Communications and PR: Sponsorship overspending amounted to R1.7m (53%) due to high volume of requests for sponsorship received from young people who are supporting youth development initiatives in their respective communities. No further requests have been approved. Information Technology: Internet connectivity Savings of R947k (15%) is due to wireless connectivity which was included in the budget but not as yet purchased as the connectivity was available through Telkom at no extra charge. IT support The R895k (22%) under spending was budgeted for IT support for T24 loan management system. It is anticipated that R500k will be spent by March 2013 for the implementation of T24 loan management system. Website maintenance The under spending of R156k (32%) is due to delays in payment to a service provider. Payments were withheld due to contractual issues. Payment will be made in January as all issues have been resolved. Outsourcing And External Services: Audit fees The R874k (25%) overspending is due to timing differences as most of the audit fees were paid in the 9 month. The annual budget for audit fees caters for this. Risk management An under spending in risk management of R134k (33%) resulted from the Risk Management position being vacant 38 for the period. The related work has not as yet been completed due to the vacancy.

40 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: Operating expenditure analysis (continued) Overheads: Depreciation R274 (17%) overspending is due to the late running of the revised depreciation after the 100% verifications assets was conducted. Since December 2012 the depreciation has been adjusted the variance will improve. Rental ICT equipment the savings of R555k (52%) is due to the expiry of contracts for printers and photocopiers. New contracts have been entered into. Rental office buildings The budget was over estimated by R488k (18%) during the budgeting process. This has been subsequently adjusted. Security The budget was over estimated by R400k (18%) during the budgeting process. This has been subsequently adjusted. Telephones The budget was under estimated by R301k (62%) during the budgeting process. This has been subsequently adjusted. Seminars and training: Staff training the under spending of R1.5m (91%) resulted from a moratorium on staff bursaries issued by the CEO pending the establishment of a bursary committee. The committee has been appointment and recommendations have been submitted for approval by the CEO. Payment is expected to be made over the next quarter. Workshops The over spending of R550k (31%) is due to workshops hosted by the Executive Directors office with the 9 provincial advisory boards. This was not catered for by the budget. Travel and entertainment: Entertainment the overspending of R30k (14%) is due to stakeholder engagements. Travel international over spending of R134k (13%) is due to unplanned travel by instruction of the Office of the Presidency. Travel local - R1.4m (14%) under spending is due to budgets being overstated during the budgeting process Penalties and interest paid: Penalties and interest paid amounts to R614k. An amount of R538k was paid to SARS for penalties and interest resulting from late payments of employee tax. This is classified as fruitless and wasteful expenditure in terms of the PFMA. The remaining interest (R76k) relates to finance charges on lease agreements. 39

41 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: Project disbursements Actual Budget

42 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: Project disbursements per division Special projects : Executive Directors, R 2 008, 1% Special projects : CEO, R 2 204, 1% Project-related operating expenses, R , 17% Service Delivery Channel, R , 23% Communications and Corporate Affairs, R , 10% National Youth Service and Skills Development, R , 24% Economic Development, R , 24%

43 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: Project disbursements analysis Administration: Courier and Postage The overspending of R36k (17%) is due to the distribution of marketing collateral for the Youth Camp across 9 provinces and the Proud to Serve campaign that was hosted in Eastern Cape. These were not budgeted for but will be within the annual budget. General administration The overspending of R838k (227%) was a result of printing project materials in-house instead of outsourcing to service providers. Accordingly there is a saving on printing of training material. Motor vehicle expenses The under spending of R112k (97%) is as a result of not yet acquiring the YAC mobiles. Communications and PR: Sponsorship under spending amounting to R100k (13%) is due to project related sponsorship for the Economic Development cluster awaiting approval. This variance will improve once payment is made. External disbursements: MerSETA An amount of R229k is funded by MerSETA. The contractual agreement states that on completion of the project, the NYDA needs to submit a report to MerSETA for re-imbursement of expenses. This is due to be submitted in the last quarter. UNFPA R277k will be recovered by NYDA from UNFPA as per the partnership agreement for youth research projects. Outsourcing and external services: Capacity building The under spending of R5.8m (27%) is partly due to the delays in implementing a R5m rural development project that is in partnership with LIMDEV. This project was scheduled to commence in December but will actually begin in February. Research costs The R603k (113%) over spending resulted from increasing the professional services for the completion of the Status of Youth Report. This report is due to be presented by the President to Parliament after 3yrs period of NYDA as per the NYDA Act. Seminars and training: Printing of training materials A under spending of R953k (28%) is due to the delay in implementation date of Crime Prevention and Environmental projects. Staff training Fifteen employees were due to be trained in rural development, however 14 of these positions are still vacant. This resulted in the under spending of R516k (73%). Workshops the overspending of R4.4m (48%) was as a result of workshops held in the 9 provinces during the youth camps. The facilitators were also trained. Travel and entertainment: Entertainment the overspending of R18k is due to unplanned youth camps and PTS campaigns. Travel international over spending of R134k (29%) is due to unplanned travel. NYDA was required to attend discussions related to youth development 42 with the Department of Social development. Travel local - R1.6m (21%) over spending is due to unplanned youth camps and PTS campaigns

44 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: PROJECT DISBURSEMENTS PER PROGRAM Research and Policy Research and Policy Corporate Partnerships: Corporate Partnership Chief Executive Officer: Special Projects Executive Directors Office: Special Projects Communications SA Youth Awards Youth Month campaign Outreach Service Delivery Channel Service Delivery Channel Economic Development projects: Business consulting services (Voucher and cc reg) ECD Management (salaries and overheads) Mentorship programme Entrepreneurship education Market linkages Rural development (Community development facilitation) Ithubalentsha Micro Enterprise projects: Music Production and Disk Jockeys Airtime franchises

45 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: PROJECT DISBURSEMENTS National Youth Service and Skills Development projects: Turkey Scholarship program Second chance (matric re-write programme) Accelerated Artisans Bursary Programme Career Guidance Job Placements Serbian Scholarship Capacity Building National Youth Service (salaries and overheads) Scholarship program Job Preparedness Youth Build Tshwane/Mpumalanga Youth Build Youth Build Ivory Park Environmental Leadership development

46 MANAGEMENT ACCOUNTS EXPENDITURE ANALYSIS: PROJECT DISBURSEMENTS PER PROGRAM National Youth Service projects: Volunteers Life skills Sports, Recreation and Arts Proud to Serve NYS Registered projects Human Settlements Youth Build Waterberg French/Love Life exchange programme Crime Prevention Drug Rehabilitation Health and Well Being Youth work Skills development (salaries and overheads) Centre for Youth Development (salaries and overheads)

47 FINANCIAL STATEMENTS INCOME Year To Date Actual Budget Variance % variance INCOME % Grant income Interest income % Fair Value adjustment % Other income % Bad debts recovered % Donor funding income % Profit on disposal of asset % 46

48 FINANCIAL STATEMENTS INCOME ANALYSIS Other income, R , 1% Donor funding income, R , 0% Fair Value adjustment, R , 0% Interest income, R , 6% Bad debts recovered, R 3 906, 0% Profit on disposal of asset, R 3 121, 0% Grant income, R , 93% 47

49 FINANCIAL STATEMENTS INCOME ANALYSIS (continued) Actual Budget Grant income Interest income Fair Value adjustment Other income Bad debts recovered Donor funding income Profit on disposal of asset 48

50 FINANCIAL STATEMENTS INCOME ANALYSIS (continued) The NYDA is classified as a Section 3A public entity of the Public Finance Management Act, No.1 of 1999 (PFMA) and is mainly funded by National Treasury through the main vote of the Office of the Presidency. Other sources of funding is derived from sponsors/donors of specific programmes as well as interest and capital repayments received from loans. Grant income: Of the total grant allocated (R376m) to the NYDA for the 2012/13 financial year, R300m was received by 31 December The request for the last tranche of R76m has been submitted to the Office of the Presidency. The application in terms of treasury regulations S 6.4 for the roll over of funds to the value of R106m was approved by National Treasury in December The expenditure budget for 2012/13 has been increased by R64m after settling the 2011/12 accruals to the value of R42m. National Treasury also approved the roll over of R9.8m of grant income that was not received in the previous financial year. The grant is due to be received in January Interest income: The total Interest Income of R17.3 million has been accrued for to date against the annual budget of R4.2. Interest income to the value of R15.8m relate to loans issued and R1.7m relates to interest on bank. For the detailed explanation on the variance between the budget and actual interest income refer to the submission of the detailed responses to the queries raised by the Audit Committee members enclosed here in the submission. Donor funding income: The total donor funding income to date amounts to R890k and comprises of the following amounts released to income for projects funded by donors: * Flemish funding (for the Civil society projects): R476k * DTI funding (for the Community Development Officers projects: R414k. Other income: The breakdown of other income of R2.6m is as follows: Sponsorship income: R1.260m R750k from ETDP SETA towards the Second Chance programme R500k from Department of Arts and Culture towards the Youth Day celebrations R9k Sponsor of international travel+ R 1.2m received from MerSETA towards the launch and dissemination of career guidance information R50k received from Bizworks for the purchase of tables during the SA Youth Awards Fair Value Adjustment amounting to R850k relates to the fair value adjustment of NYDA s investment with FNB Bad debts recovery relates to bad debts written off on the progress fund in prior periods 49

51 FINANCIAL STATEMENTS Penalties and interest paid: Penalties and interest paid amounts to R614k. An amount of R538k was paid to SARS for penalties and interest resulting from late payments of employee tax. This is classified as fruitless and wasteful expenditure in terms of the PFMA. The remaining interest (R76k) relates to finance charges on lease agreements. Donor funding disbursements: * Flemish funding (for the Civil society projects): R476k * DTI funding (for the Community Development Officers projects: R414k. Write off Loans: Write off of loans relate to progress fund. Impairment - Loans: Impairment - Debtors: Allowance of impairment 31 March 2012 R'000 Impairment expense R'000 Allowance of impairment 31 December 2012 R'000 Small and medium enterprises Microloans direct lending and intermediaries Co-operatives Allowance for impairment 31 March 2012 R'000 Impairment expense R'000 Allowance for impairment 31 December 2012 R'000 Allowance for impairment

52 FINANCIAL STATEMENTS EQUIPMENT and INTANGIBLE ASSETS EQUIPMENT Opening balance R'000 Additions R'000 Disposals R'000 Depreciation R'000 Total R'000 Furniture Motor vehicles Office Equipment Computer hardware Leasehold improvements Furniture: The purchase of a steel safe (R79k) for safe keeping of confidential documents at Corporate Services was not budgeted for. Office Equipment: Additions to office equipment includes an amount of R2.3 million relating to a finance lease for printers and copiers. This was not included in the budget and resulted in a overspending. New office equipment purchased for the period is R463k against a budget of R552k which resulted in an under spending of R89k (16%). Computer hardware: Computer equipment purchased exceeded budget of R1.3m by R145k (10%) due to under estimating the number of computers that needed to be replaced as a result of the network upgrade and domain change. Opening balance R'000 Additions R'000 Amortisation R'000 Software developed in-house Computer software purchased Software under development Total R' Computer software purchased: The budget relating to software is R2.4m, the under spending of R1.2m (52%) is due to delays in the development of internet and website as well as phase 2 of Sharepoint.

53 Loans receivable FINANCIAL STATEMENTS LOANS RECEIVABLE 31 December 2012 R'000 Small and medium enterprises Microloans direct lending and intermediaries Co-operatives Gross advances Add: interest receivable Less: loans written off Less: cumulative capital repayments Subtotal Less: allowance for impairment Small and medium enterprises Microloans direct lending and intermediaries Co-operatives Net loans receivable Loans disbursed: Loans disbursed for the period amounted to R13.284m against a budget of R22.2m. SME and Co operative loans disbursed amounted to R8.909m against a budget of R15m, resulting in a under disbursement of R6.091m (41%). The explanation is that there are loans amounting to R7m that has been approved but not yet disbursed. Experience has shown that most approved loans are eventually not taken up. Micro finance loans disbursed for the period amounted to R4.375m against a budget of R7.2m. The variance of R2.825m (39%) will be approved and disbursed during the last quarter. Interest income: Budgeted interest income for the year is R 4.2m. As at 31 December R15.5m interest income has been accrued resulting in a variance of R 11.3m(269%). The reason for the variance is that the interest income budget was prepared on a cash basis (Taking into account historical performance of the loan book for the past three years (Net of impairments) and considering current challenges on collections of loans, NB: refer to the submission on explanation of queries raised by Audit Committee members for details), whilst the Statement of Comprehensive Income is prepared on an accrual basis. Of the R15.5 million accrued to date, only R 2.1 million has actually been received with only three months left to the end of the financial year. It is unlikely that the budgeted Interest Income of R4.2 million at net of impairment will be achieved at year-end.

54 FINANCIAL STATEMENTS LOANS RECEIVABLE (continued) Capital repayments: The annual budget for loan repayments income was R34 million and for the 9 months period ending 31 December 2012 is R 25.4 million To date only R 16.5 million has been collected, with only three months left to the end of the financial year, it is doubtful that the full budgeted R34 million will be recovered. This has resulted in a variance of R 8.9 million which represents a 35% variance. The reason for the variance is that, the budget was set at above average collection of the past three years which is R20.7m, calculated considering that for the past three years collections has been as follows ( 2009/2010 R11 m, 2010/2011 R 29.8m, 2011/2012 R 21.4m). The reason for budgeting on collections higher than the average performance of the organisation in the past three years whilst the loan book was expected to perform worse than the preceding three years as indicated in the submission on explanation on audit Committee members queries, was that the majority of the SME loans beneficiaries who have been defaulting for a long time were to be handed over to the lawyers, whilst it was expected that their outstanding amounts will not completely be recovered, it was expected that in certain instances settlements agreements will be entered into and in certain instances collateral assets will be attached to recover some portions of the outstanding loans. However, the legal process has proved to be taking longer and settlements agreements which are acceptable to the Agency received from defaulters has been below expectations. The total balance of loans handed over to legal for collection is R 127.5m made up of R120.6 SME and R6.9m for Micro Finance loans

55 FINANCIAL STATEMENTS CASH and CASH EQUIVALENTS Cash and cash equivalents consists of: 31 December 2012 R'000 Cash at bank and on hand Unrestricted cash Free State Development Corporation Business Partners (Pty) Ltd CIPC 206 Massmart Holdings Limited 230 Belgium donor funding 733 Restricted cash Cash and cash equivalents Further cash receipts expected in last quarter: The grant allocation for the 4 th quarter Grant short-fall from prior financial period * Total Grant receipts R76.0m R9.8m R85.8m *The grant short fall from the prior financial period will be utilised to fund project expenditure not included in the 2012/13 budget e.g. the Proud to Serve campaign and the Youth camp

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