NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS DATE: 16 October 2013

Transcription

1 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS DATE: 16 October 2013

2 PRESENTATION OUTLINE A OVERVIEW OF NYDA 2012/2013 PERFORMANCE B KEY PERFORMANCE AREAS (KPA S) C DETAILED PERFORMANCE INFORMATION PER KPA D MATTERS RAISED BY THE AUDITOR GENERAL E FINANCIAL PERFORMANCE INFORMATION 1

3 OVERVIEW OF NYDA 2012/2013 PERFORMANCE Achieved 85% of the predetermined targets 47 out of 55 KPI s were achieved and exceeded Only 8 KPI s were not met, most of which missed by a few points 2

4 KEY PERFORMANCE AREAS: 2012/2013 Key performance Area Definition Strategic outcome Economic Participation Education and Skills Development Policy and Research Partnerships and Stakeholder Management Communication and Advisory Services To enhance the participation of young people in the economy through targeted and integrated programmes. To promote, facilitate and provide training and development opportunities to young people to enhance their socioeconomic wellbeing To develop a body of knowledge and best practice in the youth development sector to inform and influence policy development, planning and implementation. To lobby key stakeholders to implement youth development programmes in accordance with National Youth Policy To ensure access for youth to information about various interventions aimed at improving the living conditions of young people, including information and career guidance services to young people. Improved and sustainable livelihood opportunities for young people in South Africa. Enhanced enabling environment that promotes youth development in all sectors of South African Society 3

5 Conti Key performance Area Definition Strategic outcome National Youth Service And Social Cohesion Sports Recreation And Arts Health and Wellbeing Governance National Youth Fund Promote youth social dialogue and create opportunities for young people to serve their communities To ensure the promotion of sports, arts and culture and raise awareness on the economic value within the fraternity To improve the health and wellbeing of young people to allow them to productively lead fulfilling socio-economic lives associated with a responsible and sustainable nation Ensures that NYDA operations comply with applicable legislation and regulations governing a schedule 3A institution. Establish a mechanism to enable the NYDA to raise funds for purposes of advancing and implementing programmes aimed at improving the livelihoods of the youth. Enhanced sustainable social capital for young people between the age of 14 and 35 in South Africa Maintaining an accountable, prudent and efficient centre for youth development 4

6 KPA 1: ECONOMIC PARTICIPATION 5

7 Performance information 2012/2013 Strategic Objective Key Performance Indicator 2012/2013 Target Annual performance Remarks To enhance the participation of young people in the economy, aimed at increasing job creation, entrepreneurship participation, skills development, business and funding opportunities Number of young entrepreneurs supported through non-financial support interventions (entrepreneurship awareness, business management skills, business consultancy services, mentorship, market linkages) Number of youth-owned companies assisted to register with CIPC Number of young entrepreneurs funded through Economic Development Programmes (NYDA Micro, SME and external partners) young entrepreneurs supported 500 new businesses created 400 young entrepreneurs funded 36,164 young entrepreneurs 630 new businesses created young entrepreneurs funded The annual target has been achieved and exceeded by 81%. The annual target has been achieved and exceeded by 26%. Annual target achieved and exceeded by 358%. 6

8 Conti Strategic Objective To provide financing support to young entrepreneurs Key Performance Indicator 2012/2013 Target Value of funding accessed through Economic Development Programmes (NYDA Micro, SME and external partners) Jobs created through Economic Development Programmes (business consultancy services, market linkages, NYDA Micro, SME and external partners) Value of business opportunities accessed by youth entrepreneurs through Economic Development Programmes (business consultancy services, market linkages, co-operatives, community development facilitations, Ithubalentsha and green economy) R30 million worth of funding accessed Annual performance R worth of funding accessed 800 jobs created jobs created R5 million worth of business opportunities accessed R worth of business opportunities accessed Remarks Annual Target has been achieved and exceeded by 1%. The annual target has been achieved and exceeded by 316%. The annual target has been achieved and exceeded by 640%. 7

9 Conti Strategic Objective Key Performance Indicator 2012/2013 Target Annual Performance Remarks To provide business support to young people Number of entrepreneurs accessing business opportunities through Economic Development Programmes (business consultancy services, market linkages, co-operatives, community development facilitations, Ithubalentsha and green economy) 50 entrepreneurs accessing business opportunities 57 entrepreneurs accessed business opportunities The annual target has been achieved and exceeded by 14%. Implementation of special projects aimed at scaling up youth enterprise support to young entrepreneurs Number of young people supported through Ithubalentsha micro-enterprise interventions 36 projects supported 3 projects supported The number of young people involved in the projects is 164. The amendment of the APP was supposed to have articulated the target in relation to number of young people supported. The reporting of projects is, therefore, erroneous and the target should have been reported in terms of young people. 8

10 Conti Strategic Objective Key Performance Indicator 2012/2013 Target Annual performance Remarks Number of young people supported through green economy interventions 50 projects supported 78 projects supported Annual target achieved and exceeded by 56%. To facilitate and provide employment opportunities to young people Number of jobs facilitated through placement in job opportunities jobs facilitated jobs facilitated Annual target achieved and exceeded by 20%. To provide business support information to young people Number of communications campaigns to educate youth about NYDA business support programmes implemented Three communication campaigns Six communication campaign The annual target has been achieved and exceeded by 100%. To design and implement specific interventions for young women, persons with disabilities and youth in rural areas Number of outreach activities targeted at women, persons with disabilities and youth in rural areas Four outreach activities Four outreach activities The annual target has been achieved. 9

11 Provincial Breakdown on selected key KPI s Province Total FS WC KZN EC GP NC 157 MP LP NW TOTAL Number of young entrepreneurs supported through non-financial support interventions MP 16% NC 0% LP 7% NW 8% GP 37% FS 6% WC 6% KZN 10% EC 10% 10

12 Conti 11

13 Conti Province Total KZN 491 GP 761 WC 183 FS 107 LP 513 NW 41 NC 18 MP 594 EC 627 TOTAL KPI: Jobs created through Economic Development Programmes MP 18% EC 19% KZN 15% GP 23% NC 1% NW 1% LP 15% FS 3% WC 5% 12

14 Conti Province Total GP 382 NW 9 NC 27 WC 87 EC 91 KZN 587 FS 40 MP 48 LP 44 TOTAL 1315 Number of jobs facilitated through placement in job opportunities KZN 45% FS 3% MP 4% EC 7% LP 3% WC 6% GP 29% NC 2% NW 1% 13

15 KPA 2: EDUCATION & SKILLS DEVELOPMENT 14

16 Performance information 2012/2013 Strategic Objective To facilitate and implement education opportunities, in order to improve quality education attainment of the youth To facilitate and implement technical training To facilitate and implement life and professional skills training programme Key Performance Indicator Number of young people enrolled in the NYDA Matric (Grade 12) re-write programme Number of youth who receive bursaries Number of youth who receive scholarship Number of youth attended technical skills training programme Number of youth attended job preparedness programme Number of youth attended life skills training programme 2012/2013 Target Annual performance young people young people Remarks Annual target achieved and exceeded by 48%. 10 youths 105 youths Annual target achieved and exceeded by 950%. 10 youths 11 youths Annual target achieved and exceeded by 10% youths youths Annual target has been achieved and exceeded by 6% youths youths The annual target being achieved and exceeded by 17% youths youths The annual target has been achieved and exceeded by 55%. 15

17 Provincial Breakdown: selected key KPI s Number of young people enrolled in the NYDA Matric (Grade 12) re-write programme Province Total GP KZN 120 NC 16 NW 92 LP 500 FS 58 WC 7 EC 82 MP 190 Swaziland 1 Unspecified 6 TOTAL Swaziland 0% FS 2% NW 3% NC 1% KZN 4% LP 17% WC 0% EC 3% MP 6% Unspecified 0% GP 64% 16

18 Conti Provinces Total EC 242 FS 1 GP 323 LP 718 NW 9 NC 98 MP 5 KZN 521 WC 207 Total 2124 Number of youth attended technical skills training programme NC 5% MP 0% KZN 25% NW 0% WC 10% EC 11% LP 34% FS 0% GP 15% 17

19 KPA 3: POLICY & RESEARCH 18

20 Performance information 2012/2013 Strategic Objective Key Performance Indicator 2012/2013 Target Annual performance Remarks To create and produce youth development information and knowledge products which inform the public sector, private sector and civil society in developing policy, planning, implementation and review of all [100%] of their programmes related to government priorities Number of youth development information and knowledge products generated by the NYDA through internal resources Number of youth development information and knowledge access points in the private, NGO and public sector 62 publications (research, evaluation and policy reports; KM publications) 8 information dissemination points(partnership s, NYDA dissemination platforms) 86 publications The annual target has been achieved and exceeded by 39% 15 information dissemination points The annual target was achieved and exceeded by 88%. Number of youth development information and knowledge products packaged by the NYDA and made available in the different platforms for different stakeholders 59 (research reports; KM publications; policy and KM seminars) 71 information and knowledge publications The annual target has been achieved and exceeded by 20%. 19

21 Conti Strategic Objective Key Performance Indicator 2012/2013 Target Annual performance Remarks Number of requests for youth development information and knowledge products 46 information and knowledge products requested (policy inputs, evaluations, KM seminars) 51 information and knowledge requests The annual target has been achieved and exceeded by 11%. Number of copies (hard and electronic) produced by research & policy cluster and distributed to Stakeholders hard and electronic copies distributed (IYDS, NYP Guidelines, Status of Youth Report, Journal) hard and electronic copies The annual target has been achieved and exceeded by 524%. 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 105 practitioners The annual Target was achieved and exceeded by 5% Code of ethics developed for youth work A code of ethics Draft code of ethics developed Approval of the code of ethics will follow the enactment of the professionalization of the youth work bill. 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 40 interventions Annual target has been achieved and exceeded by 167%. 20

22 KPA 4: Partnership and Stakeholder Management 21

23 Performance information 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 Programmes Number of provincial government departments lobbied to establish youth directorates and implement Youth Programs Number of municipalities lobbied 10 government departments 18 Provincial government departments lobbied to establish youth directorates 16 Municipalities lobbied to establish Youth Councils Annual performance 11 government departments 20 provincial government departments Remarks The annual target has been achieved and exceeded by 10%. The annual target has been achieved and exceeded by 11%. 19 municipalities The annual target has been achieved and exceeded by 19%. Number of hosted dialogue sessions with young people on racial integration, economic participation, youth work, health and wellness, national youth service and social cohesion 6 dialogue sessions 11 dialogue sessions The annual target has been met and exceeded by 83%. 22

24 Conti Strategic Objective Key Performance Indicator 2012/2013 Target Number of engagements with the private Sector Number of young women mobilised to participate in woman development Programmes Annual performance Remarks 20 engagements 30 engagements The annual target has been achieved and exceeded by 50% young women young women mobilised The annual target has been achieved and exceeded by 62%. Number of partnerships established with government, civil society and the private sector 15 partnerships established 18 partnerships The annual target has been achieved and exceeded by 20%. To enhance relationships with current partners Number of recognition events 1 recognition event 0 recognition events The event was planned for March 2013 and all preparations were made on time. However, due to the low response rate, the event did not take place. To host a fundraising event/ initiative Number of annual fundraising events/ Initiatives 1 Fundraising event/initiative 0 fund raising events/initiatives The event was planned for March 2013 and all preparations were made on time. However, due to the low response rate, the event did not take place. 23

25 KPA 5: Communication and Youth Advisory Services 24

26 Performance information 2012/2013 Strategic Objective Key Performance Indicator 2012/2013 Target To provide career guidance services Number of youths provided with one-on- one career guidance sessions Annual performance youths young people Remarks Annual target achieved and exceeded by 393%. Number of youths provided with group career guidance sessions youths young people The annual target has been achieved and exceeded by 40%. To provide access to information regarding products and services of the NYDA and referrals to other agencies Number of people receiving information and/or referrals from NYDA access points through walk-ins People Estimated number of youth provided with information and/ or referrals through the NYDA outreach programme young young people young people young people Annual target has been achieved and exceeded by 63%. Annual target has been achieved and exceeded by 28%. Number of NYDA beneficiary stories published 40 beneficiaries stories 295 beneficiary stories Annual target achieved and exceeded by 640%. Number of portal visits to the NYDA website portal visits portal hits The annual target has been achieved and exceeded by 77%. 25

27 Provincial Breakdown: selected key KPI s Province Total GP FS MP NC NW LP KZN WC EC TOTAL Number of people receiving information and/or referrals from NYDA access points through walk -ins WC 6% KZN 12% LP 7% NW 5% EC 15% MP 18% GP 33% FS 2% NC 2% 26

28 Conti Province Total GP FS MP NC NW LP KZN WC EC TOTAL ESTIMATED NUMBER OF YOUTH PROVIDED WITH INFORMATION AND/OR REFERRALS THROUGH THE NYDA OUTREACH PROGRAMME LP 17% KZN 8% NW 3% NC 2% WC 1% EC 10% GP 23% MP 33% FS 3% 27

29 KPA 6: NATIONAL YOUTH SERVICE AND SOCIAL COHESION 28

30 Performance information 2012/2013 Strategic Objective Key Performance Indicator 2012/2013 Target To build a culture of community service among the youth, at the same time providing young people with the opportunity of learning skills and the culture of working while serving their communities To promote opportunities for young people to serve their communities Number of young people enrolled in NYS NYDA projects Number of institutions registered Number of young people who participate in youth leadership programme Number of young people participating in the NYDA Proud to Serve Campaign Annual performance Reason for variance youth youths The annual target was achieved and exceed by 15%. 15 institutions 17 institutions The annual target has been achieved and exceeded by 13% youths youths The annual target was achieved and exceeded by 13% youths youths The annual target has been achieved and exceeded by 10%. 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 youths youths The annual target has been achieved and exceeded by 145%. 29

31 Provincial Breakdown: selected key KPI s Province Total EC 693 NW NC 0 WC 0 FS 1 GP LP MP KZN 418 Unspecified TOTAL Number of young people enrolled in NYS NYDA projects Unspecified 42% MP 8% EC 4% NW 10% LP 14% NC 0% WC 0% GP 20% FS 0% KZN 2% 30

32 Conti Province Total NW 311 GP WC 998 FS LP 984 NC 681 KZN MP EC Unspecified TOTAL Number of young people participating in the NYDA Proud to Serve Campaign EC 20% MP 9% Unspecified 14% KZN 9% NW 3% GP 9% WC 8% NC 6% LP 8% FS 14% 31

33 KPA 7: Sports Recreation & Arts KPA 8: Health And Well-being 32

34 Sports Recreation & Arts Performance Information 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 among all youths Key Performance Indicator Number of young people participated in sports, arts and culture activities 2012/2013 Target Annual performance Reason for variance young people young people The annual target has been achieved and exceeded by 53%. Health & Well-being Performance Information Strategic Objective Key Performance Indicator 2012/2013 Target Annual performance Reason for variance To increase awareness of the healthy lifestyles that promote good health practices among the youth of South Africa, including dangers of substance abuse, unprotected sex, nutrition, sexually transmitted diseases and the impact of HIV infection and AIDS among young people in South Africa Number of young people participating in healthy lifestyle programmes young people young people The annual target was achieved and exceeded by 4%. 33

35 Provincial Breakdown: selected key KPI s Province Total EC 475 LP KZN 0 GP 198 NC 164 NW 121 WC 474 FS 150 MP 240 TOTAL NUMBER OF YOUNG PEOPLE PARTICIPATED IN SPORTS, ARTS AND CULTURE ACTIVITIES WC 15% NW 4% NC 5% FS 5% MP 8% GP 6% KZN 0% EC 16% LP 41% 34

36 Conti Province Total NW 0 GP 860 FS NC 0 LP 154 WC 0 EC 0 KZN 357 MP TOTAL NUMBER OF YOUNG PEOPLE PARTICIPATING IN HEALTHY LIFESTYLE PROGRAMMES NW GP FS NC LP WC EC KZN MP 35

37 9. GOVERNANCE & ADMINISTRATION 36

38 Performance information 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 and financial management systems in order to 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 2012/2013 Target Annual performance Reason for variance 20 access points 52 access points The annual target has been achieved and exceeded by 160%. Completed Project Management System, Asset Management System CRM, LMS, VMS, SharePoint Solution and GP ERP ICT Asset Management System completed. Project Management System is 50% complete. CRM Phase 3 & 4 is 95% complete. The LMS has been deployed and functionality is being tested. VMS solution is live. SharePoint is 80% completed. Great Plains has been upgraded to 2010 and the project is 50% complete. PTS upgraded to be completed in May A broader EPM has been deferred until required business processes have been mapped. Verifying data migration for Loan Management System. Requirements analysis to be developed for added functionality in GP

39 Conti Strategic Objective Key Performance Indicator 2012/2013 Target Annual performance Reason for variance Efficient and effective utilisation of resources through provision of judicious governance, technology and systems, business operations systems, human capital and financial management systems in order to adhere to relevant legislative requirements for public-funded entities Number of employees and Board members attending NYDA capacity-building programmes Enhanced Performance Management system to support organisational performance 350 employees The new NYDA performance management framework and processes implemented 516 employees and Board members End-of-year appraisals completed by all staff members. Templates for performance agreements developed. The annual target has been achieved and exceeded by 47%. The performance agreements will no longer be implemented, due to the postponement requested by the unions. As such, the performance agreements will be implemented in the 2013/14 financial year. To ensure that internal audit assurance and consulting activities add value to the organisation s operations and improve the effectiveness of the organisation s risk management and control Functional internal audit Acceptable internal controls 19 internal audit reports are rated as follows: 17 are rated to have weak controls while two are rated to have acceptable controls. Inadequate capacity to enforce documenting of business process maps, developing of product checklists, and responding to non-compliance to make sure that quality controls are adhered to. To ensure compliance with all applicable statutes and policies Unqualified NYDA Annual Reports developed Unqualified Annual Report Not measurable KPI was not adequately defined and, therefore not measurable. 38

40 KPA 10: NATIONAL YOUTH FUND 39

41 Detailed Performance information 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 number of young people benefitting from youth development programmes in the country Key Performance Indicator 2012/2013 Target Annual performance Reason for variance Value of funds raised R50 million R The annual target has been achieved and exceeded by 31%. 40

42 MATTERS RAISED BY THE AUDITOR GENERAL 41 41

43 Audit Opinion The National Youth Development Agency has been in existence for the past four years. It is a young and growing institution. In all the four years of existence the Agency has maintained a record of receiving Unqualified Audit Reports from the Auditor General, which is a better performance as compared to some organs of the state that have been in existence for much longer periods. These reports provided for areas of improvement through emphasis of matters and other reportable matters which management has been working on to improve the financial management and governance systems of the Agency. Significant progress has been made in addressing the reported deficiencies, but more still needs to be done and management together with the board is committed to the achievement of clean governance. 42

44 Emphasis of matter The Auditor General has issued an Unqualified audit opinion to the National Youth Development Agency Whilst issuing an unqualified audit opinion, he has issued one emphasis of matter on material impairment of the loans. This marks a significant improvement in the financial management processes of the NYDA given that the entity has managed to reduce emphasis of matters in the last two financial years from six(6) in 2010/2011 to two (2) in 2011/2012 and now one (1) in the 2012/2013 financial year. The high rate of the impairment of loans is a consequence of the nature and character of the beneficiaries of the NYDA loans who are high risk lenders and the current global economic conditions. 43

45 CONTI The loans impaired have not been written off and whilst current circumstances suggests that it is doubtful that the full and/or part of the loans issues may not be recovered, the NYDA is committed to pursue all the beneficiaries to make sure that they repay the loans granted to them. Measures taken, primarily seeks to provide support to their entities to ensure sustainable profitability and where necessary taking legal action against the defaulters. A monthly portfolio report which provides for the status of the loan book activity is prepared and presented to the OpsExco, moving forward, this will also be presented to the Audit Committee and the Investment Committee of the Board to ensure constant monitoring of the performance of the loan book and the effectiveness of the recovery strategies. 44

46 OTHER REPORTED MATTERS Annual financial statements The misstatements contained in the annual financial statements presented for audit were mainly caused by the late conclusion of the valuation of assets report, goods and services procured through deviations which the auditors did not accept, the outcomes of the investigations and the late conclusion of the compilation of the Annual Financial Statements which led to limited reviews before submission by senior management. Some of the adjustments were identified by management post submission of the Annual Financial Statements for audit when detailed reviews were conducted and these adjustments were given to the Auditors. Lessons have been learned from this and time tables on completion of monthly, quarterly and annual financial reports has been developed and implementation is monitored and enforced by the Chief Financial Officer A half year financial statements are in the process of being prepared and post this, monthly financial statements will be prepared and presented to the OpsExco, Exco and Audit Committee 45

47 CONTI Expenditure Management Whilst the irregular expenditure for the current financial year is at R62 million, policies, processes and systems have been reviewed and amended to prevent irregular expenditure. Significant progress has been made in this regard, noting that irregular expenditure dropped from R 133 million from the 2011/2012 financial year to R62 million in the 2012/2013 financial year. Oversight on compliance with SCM processes has been strengthened with the appointment of an experienced Senior Supply Chain Manager. Supply Chain Policies and procedures have been updated to comply with legislations and they will approved by the Board in the next seating, training of all relevant staff members will immediately follow. Irregular expenditure report is prepared on a monthly basis and is presented to the OpsExco, Exco and the Audit Committee. The Accounting Authority and management has subsequent to the audit started a process of instituting disciplinary process against officials who causes irregular expenditure and intends to continue with the practice 46

48 CONTI Revenue Management Measures have been put in place to ensure that the Agency collects its revenue from loans advanced. Whilst measures have been implemented, given the character of the NYDA loans clientele success has been quite minimal. The NYDA remains committed to collecting all loans advanced and a specific focus has been on the SME loan book where defaulters are being referred to the Agency s attorneys and are taken through the legal process to recover the advanced loans. The reason for the focus on the SME is that for Micro loans, given the size of the loan amount granted to beneficiaries, the costs of recovering exceeds the benefit of collecting. Whilst noting this, internal NYDA staff members continue engage the defaulters to secure repayment of the loans. This process will include pursuing third party sureties to the loans provided to the beneficiaries. 47

49 CONTI Procurement and Contract Management Most of the expenses resulting in irregular expenditure were transactions were above R originated from contracts that were entered into by the former Umsobomvu Youth Fund. Almost all of them have since expired and new contracts were entered into following the correct supply chain processes. An experienced Senior Supply Chain manager has been appointed and has started work on the 2 nd of October 2013, these will address the challenge of invalid deviations, NYDA s delegation of authority provides that deviations are requested by the end-user division, recommended for approval by the Supply Chain Manager and approved by the Chief Executive Officer. The delegation of authority will be amended to include the Chief Financial Officer who will recommend approval to ensure that deviations are evaluated for compliance with Treasury Regulations by senior employees before they are recommended for approval by the CEO The appointment of an experienced Supply Chain Manager will assist in making sure that goods and services are procured following the relevant legislations. 48

50 CONTI Compliance with the National Credit Act The late submission of the report has been rectified and the 2012/2013 NCA s annual report has been submitted timeously. A monthly NCA compliance report will be prepared and presented to the OpsExco and the Audit Committee on a monthly basis 49

51 CONTI Internal Control Daily oversight on transactions is now exercised by senior management and through reviews of weekly and monthly reconciliations Reviews of transaction is done on a daily basis before processing of transactions to ensure accurate and complete financial records and compliance with laws and regulations. In Supply Chain Unit, checklists forms has been developed and all transactions are checked for compliance against the checklist before the procurement is done and all payments to service providers are checked by Supply Chain Unit and signed off before Finance makes the payment. 50

52 FINANCIAL PERFORMANCE INFORMATION Financial Results and Activities Youth Development Funding The total grant for the NYDA from the Presidency for the 2012/2013 was R 376 million and the Agency was able to raise an additional R 22 million from collections of loans and interest income which meant that the Agency operated with a total available budget of R 398 million. Of the total budget, R 273 million was spent on youth development projects compared to a spend of R 235 million in the 2011/2012 financial year which is a 16% improvement from the previous financial year. The total project spend of R 273 million against a total available budget of R 398 million represents a 68% project spend. Of these, R245 million was spent on youth development projects and R27 million was spent on loans provision and other enterprise development services. 51

53 Financial Performance The Agency has reported a deficit of R 41 million for the 2012/2013 financial year This is a result of funds that were not spent in the 2011/2012 financial year due to the last tranche of the grant from the Presidency having been received in the last month of the financial year which delayed certain projects implementation. An additional amount of R 9.8 million was erroneously short paid to the NYDA by the presidency when the last tranche was paid. Both the above amounts were applied for to be rolled over to the 2012/2013 financial year and the National Treasury approved the roll over application and the funds were utilised in the 2012/2013 financial year hence the R 41 million deficit on the Statement of Comprehensive Income. 52

54 Irregular Expenditure The Agency has reported irregular expenditure of R 62 million for the 2012/2013 financial year. This amount marks a significant improvement from the 2011/2012 financial year which saw the Agency reporting a total amount of R 133 million, this is a 53% improvement. The NYDA management is committed to preventing Irregular Expenditure and has implemented internal controls that have begun to show fruits, these includes amongst others, the training of Supply Chain Staff members, the appointment of an experienced Senior Manager: Supply Chain, introduction of compliance checklist which all procurement of goods and services is measured against before procurement is initiated, the appointment of a travel agencies, cleaning of the supplier database aimed at ensuring that all service providers comply with all legislative requirements 53

55 Impairment of Financial Assets The value of gross loan book of the NYDA is R 212 million Of the R212 million, R192 million is impaired as at 31 March 2013 Whilst the recoverability of these loans is doubtful, NYDA management is committed to pursuing defaulters through the legal system to ensure that these loans are recovered. Where necessary the NYDA is assisting some of these beneficiaries with nonfinancial support aimed at enhancing the profitability and sustainability of their entities which will improve their ability to repay their loans. Whilst the NYDA has stopped loan financing, the current loan book will continue to be serviced for the rest of the term of all active loans. 54

56 Statement of Financial Position As at 31 March 2013 the Agency had currents assets valued at R90 million As at 31 March 2013 the Agency had non-current assets valued at R 40 million The Agency liabilities as at 31 March 2013 was made up of current liabilities to the value of R 63 million And its non-current liabilities as at 31 March 2013 amounted to R 1 million Consequently, the Net-Asset position of the Agency was R 65 million as at 31 March

57 Statement of Changes in Net Assets The opening balance of the Agency s Accumulated Surplus 01 April 2012 was R 106 million In the current financial year, the Agency reported a deficit of R 41 million The balance of the Agency s Net-Asset was therefore R 65 million as at 31 March

58 Statement of Financial Performance REVENUE The Agency raised revenue from exchange transactions during the financial year to the value of R 24 million The Agency s revenue from non-exchange transactions for the year was R 382 million Therefore total revenue available for the Agency in the year was R 407 million 57

59 Statement of Financial Performance EXPENDITURE The Agency spent R 195 million on Operating Expenses for the year R 246 million was spent on youth development projects R 7 million was spent on Donor funded projects as per the revenue that was received from Donors of the same value A deficit position to the value of R 41 million was reported for the financial year The deficit arose from expenditure incurred during the financial year from rolled over funds from the 2011/2012 financial year for which the revenue was recognised in that financial year. 58

60 Cash Flow Statement Cash Flow from Operating Activities A total of R 412 million was received in cash during the financial year. Total expenses paid for in cash for the year amounted to R 435 million. Net cash flow from operating activities amounted to (R 23 million) for the year. Net cash flow from investing activities amounted to (R 587k) for the year. Net cash flow from financing activities for the year amounted to ( R 478k) for the year. Net decrease in cash and cash equivalents for the year was ( R 24 million). Cash and cash equivalents at the beginning of the year was R 99 million, which left a balance of cash and cash equivalent at R 75 million at year-end. 59

61 Cash Flow Statement Continued.. This amount of the Cash and Cash Equivalent of R 75 million as at 31 March 2013 should be read with the following short-term expenses which were outstanding at year-end. Trade and other payables from exchange transactions of R 41 million Employee Costs Accruals to the value of R 16 million Deferred Income from Donor Funds to the value of R 6 million Included in the cash and cash equivalents on hand at year-end is also restricted funds to the value of R 5 million Having taken into account the above expenses, only R 7 million is left of the total available cash which is for Projects whose life cycle differs from the financial period of the Agency 60

62 THANK YOU 61