NYDA Presentation template/Rev02

Presentation to the Portfolio Committee on NYDA Annual Report

03 November 2010_________________________

NYDA Presentation template/Rev02

letter of invitation26 October 2010The MinisterHon OC ChabaneMinister in the Presidency: Performance Monitoring and EvaluationCc: Mr A LungisaChairperson: National Youth Development Agency (NYDA)

Dear Honourable Chabane

The Portfolio and Select Committees on Women, Children, Youth and People with Disabilities kindlyrequests the National Youth Development Agency (NYDA) to brief the Committee on Financial Statements and Annual Report for financial year 2009/10.

The focus of the presentations should encompass the following:

1. Financial performance:

• An overview of the spending trends of the entity as reflected in the annual financial statements: management report; report of the auditor-general; statement of accounting policies and related matters; appropriation statement; notes to the appropriation statement; income statement (statement of financial performance); balance sheet (statement of financial position), statement of changes in net assets; cash flow statement; notes to the annual financial statements, disclosure notes to the annual financial statements and annexes on transfers (including all transfers in Division of Revenue Act).

• The entity’s management of income, expenditure, transfers, cash and assets, as well as the state of its financial management systems – achievements and challenges.

• An input on the various sets of ‘Notes’ to the different sections of the financial statements • An overview of the audit report.• An overview of the audit committee.• Overspending and other poor audit outcomes.• Supply chain management.

2. Non-financial performance:

• Information on the external and internal challenges faced by the entity in the year under review.• Organisational concerns and opportunities.• Performance of the NYDA viz-a-vis its aims, objectives and performance targets over the previous year. • Efficiency and productivity of the NYDA in relation to its mandate.• Programmatic performance information in relation to the Strategic Plan, specifically:

The achievement of desired outcomes (that is, progress made in achieving stated goals and objectives). The delivery of planned outputs (that is, delivery against each and every performance indicator and target specified in the entity’s strategic plan, as well as the allocated budget.) Please also indicate if there are any virements between programmes/projects in the 2009/2010 and if so,

why?

The Committees would appreciate the attendance of the Provincial Youth Development Boards to be part of the meeting.

It would be appreciated if you extend this invitation to the Provincial Youth Development Boards.

Details of the meeting are as follows:Date: Wednesday, 03 November 2010Time: 11:00 – 13:00Venue: G26, New Wing Parliament For enquiries contact the Committee Secretary, Neliswa Nobatana at tel:(021) 403 3840,fax:(021)0866607716,cell: 083 709 8472, email: [email protected]

Sincerely___________________________Hon B ThompsonChairperson: Portfolio Committee on Women, Children, Youth and People with Disabilities

FINANCIAL PERFORMANCENYDA 2009/10 ANNUAL REPORT

KEY MATTERS TO BE NOTED WHEN REVIEWING THE NYDA ANNUAL REPORT

The NYDA was established through a merger between Umsobomvu Youth Fund (UYF) and National Youth Commission (NYC) effective 1 October 2010(refer NYDA’s Directors’ Report page 74) hence forth the NYDA only operated for 6 months ending 31 March 2010, this being its first year of operation;

There are no comparatives for NYDA due to the fact that it is its first year of operations;

The former entities operated for the first 6 months of the year (up to September 2009) and further NYC Act No.19 of 1996 was repealed on the 5th March 2010 and UYF is currently in the process of being dissolved as a section 21 company

As required by Section 21(2) of the NYDA Act the assets, rights, liabilities and obligations of the former UYF and NYC were transferred to NYDA on the effective date (for summary of assets and liabilities transferred to NYDA please refer NYDA’s Directors Report page 74 and 75);

OVERVIEW OF THE STATEMENT OF FINANCIAL PERFORMANCE

NATIONAL YOUTH DEVELOPMENT AGENCY:

Income (page 80):

Total income received during the period under review amounted to R296m of which R113m(representing 40% of the total income) represents Deferred Grant Income released to income due to adoption of GRAP reporting framework by NYDA and R165m represents Grants received from Government for the 6 months ending March 2010;

The balance of income is represented by interest on loans and investments advanced by the NYDA to young people; included in the interest income of R14,6m is interest earned on impaired loans amounting to R5m

OVERVIEW OF THE STATEMENT OF FINANCIAL PERFORMANCE

NATIONAL YOUTH DEVELOPMENT AGENCY:

Expenditure (page 80 and 122):

Total expenditure during the period under review amounted to R275m of which R139m(representing over 50% of the total expenditure) represents project disbursements;

Operating expenses amounted to R132m of which R54m represents both impairment provisions and depreciation expenses for the period under review

For detailed variance analysis i.e. budget versus actual expenditure please refer to page 122 and 123 of the annual report.

OVERVIEW OF THE CASHFLOW STATEMENT

Expenditure (page 82 of the annual report):

The total cash generated from the operating activities amounted to R7m as a result of R176m being cash received and cash disbursed amounting to R169m;

Furthermore, net cash flows amounting R11m was generated from investing activities mainly due to loan repayment exceeding loans disbursed;

As at period end cash and cash equivalents amounted to R24m and this main consist of R11m encumbered/restricted cash with R13m

unrestricted/unencumbered.

Overview of the audit report

The Auditor General of SA have issued an unqualified audit opinion on the NYDA financial statements however have raised a number of matters of emphasis which does not modify his opinion:

Emphasis of matter:

Material impairments amounting to R54m Non-compliance with laws and regulationContravention of Section 66 of the PFMA relating to the borrowing of funds Contravention of Treasury Regulations 28.3.1 relating to materiality framework Contravention of Section 55(1)(c) of the PFMA relating to the submission of theannual financial statements to auditorsIrregular expenditure amounting to R11m Non-compliance with regulatory and reporting requirements

These matters have/are receiving management’s attention and progress is reported to the Board on a quarterly basis

Report contained in pages 71 to 73 of the annual report

An overview of the audit committee

The Audit committee was established as provided for by Section 77 of the PFMA; The Audit Committee has adopted appropriate terms and of reference in line with

Treasury Regulations 27.1.8 and they have conducted their affairs in compliance with its charter

Report is contained in page 70 of the annual report

Overspending and other poor audit outcomes and supply chain management

Variance explanations on over/under expenditure has been detailed on page 122 of the annual report;

Besides matters of emphasis, as contained in the audit report, all other audit findings relates to non significant and house keeping are receiving attention by management and reported to the Board on a quarterly basis;

The NYDA has adopted its owns supply chain management policy, process and procedure which is in line with the requirements of a schedule 3A and currently is also in the process of developing a tools to assist with automation of SCM process and procedures

Information on the external and internal challenges faced by the entity in the year under review.

During the year under review the NYDA managed the merger of the two former entities UYF and NYC

This included the establishment of systems and processes to ensure efficient operations of the agency

Harmonisation of conditions of employment for staff from the former entities ( Creating a new culture)

Insufficient Funding- Funding for NYDA was based on UYF and NYC baselines, des not respond to NYDA mandate ( this had a snowball effect n all NYDA programmes)

Limitations of the NYDA act ( Section 76 not 75)- Not enough resources for Agency to establish provincial and local structures

Challenges with Performance Management systems which were aligned to schedule 3b entity not 3a

Organisational concerns and opportunities

Insufficient Funding continues to undermine NYDA’s ability to deliver on its mandate

Economic recession has increased the bulging of youth unemployment challenges

MOA with Provinces provide the NYDA with an opportunity to establish provincial operations and roll out of its programmes

Performance of the NYDA viz-a-vis its aims, objectives and performance targets over the previous year.

(responds bullet point 3&5 in letter of invitation)

Economic participationTable 1: Number of Jobs Created against target of NYDA

KPA KPI Programme KPI Target

2009/10 Actual

Variance Explanation

Economic Participation

36,300 Jobs created

14,000 Micro-finance(group and individual lending)

25,653The target was exceeded due to the high demand of this service,especially for group loans

15,000 NYS 12,381There was a shortfall of 2,619 against this target. The were no new NYS projects implemented in the last 6 months of the financial year due to limited funding for the NYDA.

5,300 Business Consultancy Services 3,410 This target was not met by 1,890 jobs. due to limited funding for

the NYDA

1,000 JOBS Programme 1,004 This target was exceeded by 4 jobs due to demand of skills from

projects, especially those related to the FIFA World Cup 2010

350 SME Lending 310This target was not met by 40 jobs. Due to limited funding, the the NYDA refocused its resources to micro finance programme due to its high demand and impact.

350 Volunteers in Action Mentorship 545

This target was exceeded by 195 jobs. This was due to the fact most of the companies mentored are in their growth stage, thus requiring new skills to support the entrepreneur operations

300 Co-operatives 0

The organisation was not able to confirm the number of jobs created through co-operatives that received loans from the intermediary SACCOL. A number of other projects still at planning stage and jobs will be created once these become operational.

Table 2: Performance figures against business support indicators

KPA KPI Programme KPI Target 2009/10 Actual Variance explanation

Economic Participation

5,500 Vouchers issued

BDS 5,000 business consultancy vouchers 4,220 Due to NYDA limited NYDA funding for this

period the number of vouchers issued were reduced to manage the cash flow of the organisation. There were 281 young people who attended Entrepreneurship Education through our YAC sites but were not allocated training vouchers

500 training vouchers 0

Business Opportunities Support Services

R100m worth of opportunities sourced R64,698,000 There were fewer business opportunities

during this period due to the economy crisis

20 BOSS transactions funded (individual basis) 8

There were fewer deals funded during this period due to the effects of the global economic crisis, which resulted in reducedbusiness activities

2,000 supported through the VolunteersIn Action Mentorship Programme

2,000 women and youth supported through mentorship (group mentoring, one-on-one mentoring and e-mentoring)

1,354

There was a slow uptake of this programme during the last two quarters of the year – thus The target was not met

Economic participation CONT….

Table 2: Performance figures against business support indicators

KPA KPI Programme KPI Target 2009/10 Actual Variance explanation

12,450 enterprises accessing enterprise finance loans

12,000 enterprises supported with micro finance loans

10,077

The credit crisis experienced this financial year and the reduction in the number and value of loans issued by the NYDA especially in the 3rd and 4th quarter resulted in this target not being met.

20% (200) entrepreneurship education (EE) graduates receive loans (group and individual lending)

0

There were no EE graduates who were ready to be offered loans during this period. There fore this target was not met. The activity was not implemented.

100 cooperative enterprises supported withloans

0

There were no cooperatives which were ready to be issued with the loans during this financial year as this programme was in its planning phase.

300 cooperative members supported with loans through the Savings and credit Co-operative League of South Africa

67

Partial disbursement was made to SACCOL resulting in targets not being met

R26 million micro finance loans provided (group and individual lending)

R10,496,632

This target was not met due to limited funding which forced the NYDA to reduce the number and amount of loans issued to young people. This includes finance loans provided by other NYDA partners

50 SME enterprises supported with loans 23

This target was not met due to limited funding which forced the Agency to reduce the number and amount of loans to young people.

R28 million in loans provided for SME’s R14,492,072

This target was not met due to limited funding which forced the Agency to reduce the number and amount of loans to young people. This includes finance loans provided by other NYDA partners

Education, Skills Development

Table 3: Performance against Education and Skills development targets

KPA Year Target Programme KPI Target 2009/10 Actual

Variance explanation

Education & Skills Dev

68 610 enrolled on education and skills development

Entrepreneurship Education (EE): In School (Target 30,000)

30,803This target was exceeded as there were more learners who were enrolled in the targeted grades of Grade 8-11 in the selected schools

EE: Out of School Target 2,500 1,882 This target was not met due to the fewer projects

implemented by the NYDA during this reporting period

30,000 NYS Category 1 0 There were no category 1 NYS projects implemented by the NYDA due to limited funding

100 people from 5 communities identified for Community Development Facilitation programme

0

This programme was not initiated due to lack of funding to start the process of community facilitation

60 co-operatives (1,000 members) trained in co-operatives 0

There were no skills development programmes for cooperatives as a programme was still in its planning phases with no young people recruited.

10 Service Providers trained in co-operatives development training (train the trainer)

0

There were no skills development programmes for cooperatives as a programme was still in its planning phases with no young people recruited.

5000 undergoing job preparedness workshops 5,079 This target was met as many young people enrolled in this

programme through the NYDA branches.

National Youth Service

Table 4: Performance against National Youth Service Targets

KPA Year Target Programme KPI Target 2009/10 Actual

Variance explanation

National Youth Service

20 000 participate in NYS projects

11,000 NYS Category 2 20,49

There were fewer projects approved for implementation during this period due to NYDA limited funding

9 000 NYS Category 3 16,093

This target was exceeded

Table 5: Performance against Social Cohesion targets

KPA Programme KPI Target 2009/10 Actual Variance explanation

Social Cohesion

Number of municipalities that have set up recreation facilities

The NYDA held the following meetings as part of the preparatory phase for this target:

2 Meetings with the Dipaleseng Municipality which resulted in the development of the first draft of the strategy that is intended to respond to youth issues within the municipality.

1 meeting with the Philadelphia school for the Disabled and Girl Guides Association.

1 meeting with the Breede Valley Municipality to establish a Youth Council.

The setting up of recreational facilities was not met

Number of youth dialogue sessions

The NYDA participated in the following dialogue sessions with youth formations:

held a dialogue with participants of the African Schools Debating Championships looking at poverty.

held a dialogue Series on Youth and Economic participation with the South African Youth Chamber of Commerce.

Organised a Young Women’s’ Dialogue session to identify appropriate programme interventions for Young Women as they have been identified as a priority target group by the National Youth Policy

Participated in the Malibongwe dialogues hosted by the Nelson Mandela Foundation

Facilitate dialogue on the Draft Youth Development Strategy of the Dipaliseng municipality Youth Skills Development Summit which was held in Balfour.

Participated in a Youth Dialogue session on Democracy hosted by the Independent Electoral Commission in Nelspruit on the 25 January 2010.

This target was met

Social Cohesion

Information services and Communications

Table 6: Performance against information and communications targets

KPA Output/Outcome KPI (Targets) 2009/10

Actual Variance Explanation

Information Provision & Communications

602,000 Young people

2,000 co-operatives receive co-operative information newsletter 0

This target was not met due to fact that the programme had not started recruiting young cooperatives at this time. Therefore there was no newsletter produced and distributed targeting this group.

100,000 Call Centre interactions

54,106

This target was not met due to few enquiry calls received during the last two quarters of this financial year. There were 2 periods in the year, September 2009 and March 2010 where our call centre system was down where calls were not recorded thus not reported.

500,000 receive information through YouthAdvisory Centres 440,906

This target was not met due to reduced levels of services such as vouchers and loans at branch levels this there were fewer young people who visited our branches during the 3rd & 4th quarter

364 NYDA information dissemination points

33 Youth Advisory Centres providing information and counselling

13Due to capital cost associated with establishing branches the NYDA had no additional funds to set up all 33 branches

121 YAC Points providing information 121 This target was met due to the use of existing

infrastructure in municipalities to set up the YAC points

200 Kiosks providing information 0 This target was not met due to lack of funding to set up

the Kiosks

10 YAC mobiles providing information 0

This target was not met due to lack of funding to purchase new YAC mobiles

80% Outreach Officers time spent on outreach activities

Not measured

This indicator was not measured due to incomplete measurement systems for this target

Policy, Lobby and Advocacy

Programme KPI Target 2009/10 Actual Variance explanation

Policy, Lobbyand Advocacy

Number of consultations with public sector structures

The NYDA made submissions and participated in the following forums:

Submitted written and oral comments on the cooperative and the Public Broadcast Bills

Completed road shows in all 9 provinces to consult young people on development of NYDA strategic areas of operation.

Participated in the National Steering Committee of the 16 Days of Activism Campaign.

Posted the 2nd Engagement with Youth Chambers of Commerce

Participated in the National Council of Provinces (NCOP) programme in Limpopo on 22 March 2010.

This target was meet

Number of youth conferences/workshops

The NYDA held the following workshops/conference for youth formations and stakeholders:

S stakeholders Summit on Youth and Skills Development at Dipaleseng Municipality in Balfour. The summit was attended by local civil society organisations, government and private sector.

Hosted the Pan African Youth Congress of the AU which was attended by most African Countries Youth Organisations.

4 Interdepartmental Committee meeting on Youth Affairs which had been attended by all government departments.

Conducted a 2 day Inter Departmental Committee workshop

This target was met

Research, Monitoring and Evaluation

Table 8: Performance against Research, Monitoring and Evaluation targets



Number of case studies and lesson learned pieces produced in support of all the activities within the various business units

Completed seven (7) research studies to inform the planning and management of youth work. These were:

A Study on Mpumalanga government expenditure on youth development.

A national situational overview of intellectual disability in South Africa and in the context of Siyanceda Project.

A Feasibility of implementing selected youth development projects for employment and self-employment in Bloemfontein, Botshabelo, and Thaba-nchu.

Evaluative research conducted in Preparation for the 2010 Entrepreneurship Development Conference.

Information, Communication and Technology support satisfaction Survey.

A study on business opportunities available to young entrepreneurs from the 2010 FIFA Soccer World Cup and related events.

A Situation analysis for discussion document on rural youth development strategy.

Completed 12 evaluation and 2 baseline studies on the programmes, products and services implemented by the Agency and its partners. These were:

Impact assessment and evaluation of the JOBS Programme. YAC Customer Satisfaction Survey-Series 4 - March 2010. 2009 SME Survey. Evaluation of Buy Youth Campaign. Evaluation of the Cooperatives Training and Mentorship

Project implemented by Umfolozi FET College, February 2010.

Evaluation of the Regenesys Graduate Development Programme.

Evaluation of the Maths Centre Ekurhuleni Maths & Science Volunteer Project.

Evaluation of the Maths Centre Learner and Teacher Entrepreneurship Education Programme.

This target was meet

Research, Monitoring and Evaluation CONT…

Table 8: Performance against Research, Monitoring and Evaluation targets



Evaluation of the Elgin Learning Foundation Entrepreneurship Education Programme.Evaluation of the African Union Skills Development Entrepreneurship Education Programme.Evaluation of the Graduate Development Programme at Banking & Financial Services Campus.Evaluation of the Ikusasa Supplier Development Programme.Baseline study for participants in the Limpopo/NYS Traffic Officers’ project.Baseline study for YouthBuild Infrastructure Project in Ivory Park.Evaluation of the AIDC Graduate/Diplomat Internship Programme.Evaluation of the engineering fabrication learnership at West Coast FET College.Evaluation and impact assessment of the Graduate Development Programme in 13 FET Colleges.Evaluation of Motheo FET wood finishing/furniture making learnership.

Number of articles produced for publication

Produced 6 knowledge briefs which detailed the promising, good and effective practice, these were titled:• SME survey 2009 at a glance: what are implications for NYDA -

29 September 2009.• Evaluative research on Entrepreneurship Development

Conference: What lessons for Limpopo? - 29 October 2009.• Implementation of “The Buy Youth Campaign” Pilot: An NYDA

Innovation - 30 November.• Final Evaluation of the Out-Of-School Entrepreneurship

Education Programme - 8 January 2010.• The Implementation of the Volunteering Programme 2009 FIFA

Confederation World Cup (Prelude to the 2010 FIFA World Cup): Did NYDA deploy adequate resources to effectively manage the programme? 12 February 2010.

• The effect of the Education System on Youth Development in South Africa: The NYDA challenge 23 March 2010.

This target was met

Effective and Efficient Resource Management

Table 9: Performance against Effective and efficient management of Resources targets

KPA Output/ Outcome KPI Targets 2009/10 Actual Variance Explanation


Staff Development and Training

70% of staff undergoing skills programmes

45% This target was not met due to the reduction in the NYDA’s cash flow. Expenditure on overheads was minimised resulting in less staff members trained during this financial year

100 UYF Staff attend co-operative development training

33

80% EF staff undergo skills development / enhancement programmes

25%

R13,000 – R15,000 spent on trainee for skills programme

Not measured This target was not measured as the current systems for managing programmes is being developed

R30,000 spent per trainee for NYS category 1

Not measured This target was not measured as this activity did not have any new uptake of young people during this reporting period

Effective and Efficient Resource Management CONT…


Establishment and Maintenance of office network structure for product deployment

0 new Kiosks touch screens established 0 There were no activities planned

against this target by the NYDA

4 new limited service YACs established

0This target was not met due to limited funding for establishment of new infrastructure for the NYDA

121 YAC Points consolidated and Re-Engineered

121This target was met due to the use of existing infrastructure in municipalities to set up the YAC points

8 Group lending sites 4 The NYDA had no additional funds to

set up all 8 group lending sites

8 new 3rd generation YACs established 0

This activity target was not met due to limited funds for the NYDA to establish new YACs

Development and improvement of branch operational processes

Product and process performance management

Branch operations processes were revised and adopted

This target was met

Training & deployment of YAC operations manual (electronic form)

Operations manuals for branches were developed and deployed through NYDA internal communications platform

This target was met



Product delivery specification observed e.g. 80% of Loan Officer’s time to be spent out of the office sourcing deals.

Not measured

This target was not measured as NYDA has not completed developing systems and tools to assist with measuring this target.

Contract renewals to be concluded within last quarter of expiry date

Not measured

This target was not measured as NYDA has not completed developing systems and tools to assist with measuring this target.

Micro-finance Portfolio at Risk (PAR) at 20%

65%The NYDA has experienced a significant increase in repayment defaults by enterprises. The main contributor is the current adverse economic conditions experienced by the enterprises hence a high portfolio at risk. Various measures and interventions are being implemented to support these young entrepreneurs.

SME PAR at 10% 51%

Co-operatives PAR at 20%

100%

24 hour turnaround time in responding/acknowledging to queries, applications, enquiries

Not measured

This target was not measured as the implementation of the Customer Relationship Management Systems was still incomplete at the time of this report



3 months turnaround time from project identification to approval

Not measuredThis target was not measured as the NYDA has not completed developing systems and tools to assist with measuring this target.

8 weeks turnaround time for contracting of all approved projects

Not measured

R250million funds leveraged for on-lending

R50 million leveraged for on lending to micro-agri enterprises

0This target was not met however discussions with various potential partners were in progress

R200 million leveraged for SME on lending 0

Leverage R6 million for co-operative support interventions R5,000,000

The target was not met the economic credit crisis, many companies were not willing to partner in lending young people loans

Half yearly customer satisfaction surveys on each programme

90% customer satisfaction based on half yearly customer satisfaction surveys

63%

The target was not met during the financial due to the disruption in services brought by the merger process and the reduction in some services

50% Decrease in customer complaints 13%

Customer Service Index rating at >90% 27%

THANK YOU!!!!!!!!!

Documents

NYDA Presentation template/Rev02