NYDA

ANNUAL REPORT 2011-2012

OUR YOUTH. OUR FUTURE.

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

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REPUBLIC OF SOUTH AFRICA

OUR YOUTH. OUR FUTURE.

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NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

......... 7 Introduction to the National Youth Development Agency ............................ 25 Operational Review Report Against Key Performance Areas ....... 5 Our Mission....................CO 3 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 NT EN TS Message from the Minister........ 73 ............................................................................. Vision and Values .... 8 Operating Structure ................................................................................................................................................................. 9 Performance for Period under Review............... 63 Annual Financial Statements . 10 National Youth Development Agency Board of Directors ........................................................ 22 Chief Executive Officer’s Report ...... 39 Statement of Corporate Governance ............................. 3 Message from the Chairperson of the Board of Directors .................................... 16 National Youth Development Agency Operations Executive Committee .. 18 Transitional Accounting Authority’s Report ... 29 Beneficiary Stories and Articles .....................................

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 1 .

Minister in The Presidency: Performance Monitoring. Evaluation and Administration Collins Chabane 2 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 REPUBLIC OF SOUTH AFRICA .

MESSAGE FROM THE MINISTER In the last financial year the NYDA achieved 42 out of 49 key performance indicators. Ms Innocentia Motau. another remarkable achievement by this young organisation. I am pleased to note that the NYDA has received an unqualified report and as the Ministry we will work with the NYDA Board to address all management issues raised in the Auditor General report. we can do more. Ms Maria Tshabalala. These young people laid the foundation to ensure that this organisation can continue to improve for years to come. we should not lose sight of the people who steered the organisation to these heights. I plead with everyone to use these implementation guidelines so that all efforts contribute to the holistic development of youth and help South Africa to tackle the challenge of youth unemployment. Mr Collins Ohm Chabane. As a country we still need to do more to tackle one of South Africa’s biggest challenges since the attainment of democracy in 1994. MP Minister in The Presidency: Performance Monitoring. Mr Andile Lungisa and supported by Board Deputy Executive Chairperson. the implementation guidelines will direct how all sectors of society including organs of state. This is the first NYDA Board of Directors led by Board Executive Chairperson. This includes assisting the private sector to structure its corporate social investment budgets for targeted youth development programmes. Part of the NYDA’s mandate involves advancing youth development through guidance and support to initiatives across sectors of society and spheres of government. I take this opportunity to thank all NYDA programme implementation partners in government. the whole of South Africa needs to pull together to address the unemployment challenge. I call on more and more sectors to play their part and to continue refining and implementing youth development programmes. At 25% of the population. On behalf of The Presidency I also wish to appreciate the sterling leadership of the Deputy Minister Obed Bapela for his support during this period. On behalf of government. As we celebrate this achievement and many other milestones reached by the NYDA during the 2011/2012 financial year. Evaluation and Administration NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 3 . We cannot allow this trend to continue. Mr Yershen Pillay. This year the organisation achieved 63 out of 70 key performance indicators. we have one of the highest official unemployment rates in the world. Together with the Draft Integrated Youth Development Strategy (IYDS). I applaud the NYDA Executives and staff for the excellent work they have done in this period. Mr Francois Slabbert. corporate South Africa also needs to play its part. If we work together. private and non-governmental organisations must implement programmes aimed at the development of youth. What is most concerning is that our young people are the most affected and this becomes evident during service delivery protests where young people are always seen leading from the front. the private and civil society sectors who are making significant contributions to address this challenge. Mr Mcebo Khumalo and Ms Pholisa Makeleni. As government takes the lead. The organisation has developed and shared with the public the National Youth Policy Implementation Guidelines aimed at simplifying the implementation of the National Youth Policy 2009-2014.

Executive Chairperson: Andile Lungisa 4 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

Consequently. Despite a drop in the financial allocation of the NYDA in the past three years. particularly for her support of the work of the Pan African Youth Union. We shifted our focus from being a funding institution to becoming a developmental institution for young people. and the COP 17 conference. respectively. we progressively underwent a period of growth regarding the performance of the NYDA. since its establishment in 2009 The former Deputy Minister in the Presidency. mainly characterised by the triple challenge of unemployment. In responding to that immediate challenge. in response to the challenges that confronted the youth sector at the time. Mindful of the amount of work we had to perform. as the country collectively seeks to improve the lives of young people. We take pride as the only youth development agency of the country. I was part of the accounting authority in the third year of the existence of the National Youth Development Agency (NYDA). while gaining skills to help equip them for life.MESSAGE OF EXECUTIVE CHAIRPERSON THE BOARD OF DIRECTORS It is with great pleasure that I write this note as the former Executive Chairperson of the NYDA Board of Directors. for always being available whenever called upon. 1976 uprisings that took place in Soweto and other parts of the country. led by an eight-member Board of Directors with the Chief Executive Officer as an ex-officio board member. we can proclaim with confidence that the NYDA. It is important to note that we could not have done this work all on our own. • • 5 . we always had the goal in mind of improving the lives of young people in everything we did. This was by no means an accident of history. undertook a comprehensive process of developing a Status of Youth Report (SYR) for South Africa. for his ongoing. For the year under review. as South Africa’s growth and development is linked to that of the rest of the continent NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 We are encouraged by the government departments that have started to heed the call by the NYDA to establish youth directorates in their respective departments. Premiers and Municipal Managers. aimed at providing a framework for approaching the course of youth development in the next decade. strategically located in the offices of the Director Generals. however. Guidelines for the simplification of the implementation of the National Youth Policy (NYP) (2009–2014) have also been developed. which resulted in decreasing our interest on loans to just 6% effective in 2012/13 financial year. by no means insurmountable. to be submitted to Parliament every three years. plumbing and boiler-making. Evaluation and Administration. This is evident through the value of loans disbursed through microfinance. We sought to do this through covering a range of issues affecting young people. we have responded well to the many challenges that continue to confront the youth of our country. the private sector and civil society are implementing the strategy towards attaining a more coordinated approach. which were mainly related to the mainstreaming and coordination of youth development. Although the Annual Report was developed after my term had ended. This does not in any way suggest that our tenure has been without its challenges. therefore. We look forward to witnessing how government. and achieved two unqualified audit opinions in the past two financial years. Through our various initiatives. under the auspices of the National Youth Service (NYS) programme. an achievement we intend to maintain. thereby providing services to their communities. poverty and inequality. the World Festival of Youth and Students. We look back with pride at the first day that we set up office in 2009. approximately 74 000 jobs were created for young people. The NYDA was officially launched by President Jacob Zuma in June 2009 and its launch coincided with the 33rd anniversary of the June 16. We are. Collins Chabane. we undertook a process of compiling the Integrated Youth Development Strategy (IYDS) for South Africa. We actively lobbied government for the establishment of an institution such as the NYDA. We remain very grateful to all the young people and stakeholders who actively participated in the formulation of this strategy. more young people served on projects such as the 2010 Soccer World Cup. forever grateful to the following: The Minister in the Presidency for Performance Monitoring. There were challenges and they are still there. but a deliberate act on the part of government to practically demonstrate the South African government’s commitment to the improvement of young people’s lives. We also placed more emphasis on the training of artisans in various technical fields such as bricklaying. Mr. unrelenting support and willingness to lend an ear to the NYDA Board. Ms Dina Pule. They are. In addition. did sterling work in establishing a world-class institution capable and adequately prepared to respond to the challenges of young people. and group and SME lending over the past three years.

I trust we will continue to interact in our endeavours to serve young people. held in December 2010 in Tshwane. comrade Julius Malema. If we continue to underfund the NYDA. It is through your invaluable input and contribution that the NYDA is considered a worldclass institution. Please continue to vigilantly monitor the NYDA’s progress to ensure that it continues to serve your interests. The summit established a specialised youth agency. All civil society and political youth organisations for their continuous engagement. and a better understanding of each other’s role in improving the lives of young people and building a developmental state. constructive criticism and willingness to always partner with the NYDA. we will achieve nothing other than setting it up for failure and. for always sharply highlighting the plight of young people. Significantly. It is through your ongoing feedback that the NYDA can rise to greater heights. comrade Thulani Tshefuta. The media allowed us the platform and space to communicate the NYDA’s mandate and vision. Dr Tshabalala-Msimang. it has not broken the morale of the staff in their quest to be part of the vision to improve the lives of young people. despite challenges that continue to confront the organisation. The 2010 World Festival of Youth and Students. made us very proud. faith and political orientation. for which we are thankful. in the process. The President of the South African Youth Council. While this has limited the scope and reach of what we collectively sought to achieve. including the underfunding of the NYDA. Importantly. Steven Ngubeni continues to successfully lead and inspire the staff of the NYDA to soldier on. The millions of young South Africans. • • • • We are also very appreciative of the international community. through ongoing engagement. Ms Innocentia Motau. for playing an invaluable role in the reconfiguration of the youth development landscape in South Africa. clarify issues. plan in isolation. which led to the election of South Africa (through its representative. but must continue to walk with your heads held high. during her successful tenure as Minister in the Presidency. bears testimony to that fact. with the theme. attended our programmes to interact with us and participated in our various forums. Dr Manto Tshabalala-Msimang. particularly international youth formations. and his ongoing guidance and leadership. the continental youth body. as well as the NYDA products and services. we will. particularly through education. Your distinctive personalities and diverse energies have helped us lay the foundation for this institution. oversaw the adoption of the NYDA Bill. which will further propel the NYDA to greater heights indeed alive with possibilities. who. Makashule Gana of the opposition DA for being available to attend programmes of the NYDA. South Africa. creating unsustainable expectations from young people. This was subsequent to her playing a leading role in the adoption of the NYP (2009–2014). unemployment and inequality. We must continue to pose a challenge to government to recommit itself to the cause of youth development. because you have committed your time and potential to the cause of youth development. in future. Mr Pholisa Makeleni and Mr Mcebo Khumalo (all non-executive members). You must continue to work towards improving yourselves. Members of Parliament for their ongoing oversight of the work of the NYDA. able to fulfil the needs of people. and continued guidance and scrutiny of our plans. Furthermore. which guides government on its youth development programmes. Mr Obed Bapela. it has been a great privilege to interact with each and every member of staff of the NYDA. You must continue to dream and go out to pursue your dreams. Evaluation and Administration. therefore. We have not always seen eye-to-eye. who engaged with the NYDA at all its access points. also adopted South Africa’s model of youth development. for the commitment and energy he has displayed from the very start. but we remain confident that. in turn. Let’s continue the fight against youth poverty. help young people understand the space they need to occupy. for always being available to travel the length and breadth of the country with us to confront young people and their challenges head-on. • • The late Minister in the Presidency. Mr Yershen Pillay (Deputy Chairperson). The 17th African Union Heads of State and Government Summit. which took place in Malabo. leading to the successful establishment of the NYDA. Ms Maria Tshabalala. we are grateful for the recognition of the African youth and the confidence the international community has demonstrated in South Africa. because South Africa is NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 Andile Lungisa Former Executive Chairperson: NYDA Board of Directors 6 . It has been both an honour and a privilege to serve with the outgoing Board of Directors. Specific recognition goes to the former President of the ANC Youth League. for understanding that we are all part of a global community and cannot. ‘Accelerate Youth Empowerment for Sustainable Development in Africa’.• The recently appointed Deputy Minister in the Presidency: Performance Monitoring. Equatorial Guinea. Mr François Slabber. irrespective of background. Andile Lungisa) to the position of President of the Pan African Youth Union. You must never be deterred by criticism. The Chief Executive Officer. which will. responsible for advising the Secretary General of the African Union on youth development matters on the continent. particularly the under-resourcing by National Treasury.

as well as vital assets for national and community development. Transparency and fairness — We shall always ensure transparency in everything we do. initiating. Service-orientation and excellence — We will strive to attain internationally recognised standards of service quality. at all times. Integrity and ethics — We shall. facilitating. at all times. job creation. integrating. in partnership with all spheres of government.’ OUR VALUES Developmental — We will strive to empower young people. suppliers and employees with fairness. respect and accountability among all our employees. conduct our programmes with integrity and inculcate a culture of honesty. a high standard of professionalism and maintain continuous improvement in service delivery to young people. implementing. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 7 . and in pursuance of its vision for youth development and the objectives of government.OUR MISSION To promote faster economic participation. and equity. protect their dignity and advocate for society to recognise young people as agents and partners in their own development. the private sector and civil society. Prudence — We shall exercise prudence and economy in running the business of the NYDA. and all our stakeholders. mainstreaming and monitoring youth development interventions. OUR VISION ‘A world-class developmental agency that empowers all South Africa’s youth socially and economically for a better life. coordinating. We shall treat all our partners. in order to build trust and confidence with young people. sustainable livelihoods and social cohesion through designing.

Similar to many developing countries. National Youth Service (NYS) and social cohesion Goal statement: To promote social dialogue among the youth and create opportunities for young people to serve their communities. social cohesion activities. Given the youthful nature of the South African population. 8 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . Training and development Goal statement: To promote. mentorship. the private sector and civil society. skills development and training. efficient centre for youth development. NYS programmes and dialogue. reduce poverty and inequality. South Africa has a large population of youth. much of the socio-economic challenges faced by the nation. research and development Goal statement: To develop a body of knowledge and best practice in the youth-development sector which informs and influences policy development. which promote job creation. prioritise youth development and contribute towards identifying and implementing lasting solutions that address youth development challenges. job placement. facilitate and provide training and development opportunities to young people to enhance their socioeconomic wellbeing. joblessness and poor health are borne by the youth. At an individual level (microlevel). inequality. Policy. entrepreneurial development and support. NYDA activities and interventions are designed to achieve the following Strategic Outcomes: Improved opportunities for sustainable livelihood for young people An enhanced enabling environment that promotes youth development Enhanced sustainable social capital for young people Making available an accountable. prudent. Government.e. established primarily to tackle challenges that the nation’s youth are faced with. At a community level (mesolevel). the NYDA designs and implements programmes aimed at improving the lives of the youth and the opportunities available to them.e. the NYDA facilitates the participation of youth in the development of key policy inputs into shaping the socio-economic landscape of South Africa. self-employment and incomegenerating activities. 2008 (Act 54 of 2008). and prioritise the development of policies which create an enabling environment for youth development.2% of the total population. The NYDA plays a leading role in ensuring that all major stakeholders. The existence of the NYDA should be viewed within the broad context of South Africa’s development dynamics. The NYDA will support both profitable businesses. The NYDA was established by the NYDA Act. At a provincial and national level (macrolevel). as well as social enterprises. the NYDA provides direct services to youth in the form of information. Furthermore. by means of its policy development. which simultaneously promote the development of sustainable livelihoods. representing 41.INTRODUCTION TO THE NATIONAL YOUTH DEVELOPMENT AGENCY (NYDA) The NYDA is a South African-based agency. the NYDA encourages young people to be catalysts for change in their communities through involvement in community development activities. The gravity of challenges South Africa faces require multipronged efforts. loan funding. Governance Goal statement: To ensure that NYDA operations comply with applicable legislation and regulations governing a Schedule 3A institution National Youth Fund Goal statement: To establish a mechanism to enable the NYDA to raise funds for purposes of advancing and implementing programmes aimed at improving the livelihood of the youth. including information and career guidance services to young people. i. i. Youth advisory and information services Goal statement: To ensure access by youth to information about various interventions aimed at improving the living conditions of young people. health awareness programmes and involvement in sport. NYDA Key Performance Areas (KPAs) Economic participation Goal statement: To enhance the participation of young people in the economy through targeted and integrated programmes. poverty. between the ages 14–35. planning and implementation. career guidance services. partnerships and research programmes.

as approved by the NYDA Board of Directors in June 2011. NYDA CLUSTERS OFFICE OF THE EXECUTIVE CHAIRMAN OFFICE OF THE EXECUTIVE DEPUTY CHAIRMAN OFFICE OF THE CHIEF EXECUTIVE OFFICER (CEO) OFFICE OF THE CHIEF OPERATIONS OFFICER (COO) FINANCE INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) COMMUNICATIONS CORPORATE PARTNERSHIPS RESEARCH AND POLICY NYS AND SKILLS DEVELOPMENT CORPORATE SERVICES ECONOMIC DEVELOPMENT SERVICE DELIVERY CHANNELS RISK MANAGEMENT PROVINCIAL OFFICES FULL SERVICE BRANCHES SATELLITE BRANCHES NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 9 .OPERATING STRUCTURE Below is the operating structure of the NYDA during the year under review.

The NYDA planned for 10 000 youth. The annual target was exceeded by 100%. due to high numbers of young people willing to enrol in NYS programmes implemented by the NYDA. 10 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . objectives and targets set for the NYDA. It details all the KPAs. but demand for attendance increased and the Presidency selected the 40 000-capacity Orlando Stadium. The annual target was exceeded by nine municipalities. A number of volunteer mentors participating in the NYDA mentorship programme To create and support social networks to benefit young people A number of opportunity providers participating in the Buy Youth Campaign A number of youth supported through social and health interventions 3 000 youths 3 460 youths The annual target was exceeded by 15. 300 opportunity providers 319 opportunity providers The annual target was exceeded by 6. The annual target was exceeded by 3 051. due to willingness of municipalities to establish youth councils. Reason for Variance Report on Performance against Predetermined Objectives The annual performance information report against predetermined objectives covers the period from 1 April 2011 to 31 March 2012. due to increased numbers of youth enrolled in NYS programmes implemented by government departments. a large number of topical issues on youth emerged. which warranted dialogue by young people. During the 2011/12 financial year.6%. The annual target was met. goals. 500 young women 505 young women Four sessions Eight sessions Eight local municipalities 17 local municipalities 40 000 youths 43 051 youths 2011/2012 Target 10 000 youths Annual Performance 2011/2012 11 734 youths The annual target was exceeded by 1 734. as approved by the Office of the Presidency for the financial year 2011/2012.3%.PERFORMANCE FOR THE PERIOD UNDER REVIEW KPA: NYS and Social Cohesion Goal: To promote social dialogue among the youth and create opportunities for young people to serve their communities Objectives Key Performance Indicator A number of youth serving their To promote opportunities for young people to serve their communities communities through NYDA-funded projects A number of youth serving their communities through National Youth Service Unit (NYSU)-registered projects A number of local municipalities assisted with establishing youth councils A number of hosted dialogue sessions with young people To create a platform for young people to participate in and benefit from democratic processes A number of young women mobilised towards the 16 Days of Activism (against violence and abuse on women and children) A number of youth participating in Youth Month celebrations 10 000 youths 31 000 youths The annual target was exceeded by 21 000. 300 volunteer mentors 332 volunteer mentors The annual target was exceeded by 10.3%.

due to funding of youth SMEs that are in the social enterprise field which the NYDA is introducing. The annual target was met and exceeded by R4 777 937. due to launch of Ithubalentsha Projects. based on the To provide financing support to young entrepreneurs scope of the business and financial need. 2 000 beneficiaries 2 276 beneficiaries 2011/2012 Target 800 vouchers Annual Performance 2011/2012 2 239 vouchers The annual target was met and exceeded by 1 439 vouchers.2%. The annual target was met and exceeded by 276 beneficiaries. R20 million R33 million The annual target was met and exceeded by 66. Microloans issued by the Ithubalentsha programme contributed R5 435 500 towards loans.KPA: Economic Participation Goal: To enhance the participation of young people in the economy through targeted and integrated programmes Objectives Key Performance Indicator A number of business support vouchers issued to youth entrepreneurs A number of youth beneficiaries supported through business consultancy vouchers and business opportunities support services A number of youth-owned companies assisted with To provide business support to young people registration with CIPC A number of youth entrepreneurs 50 entrepreneurs assisted with accessing funding and business opportunities through the voucher and business support programmes Value of funding and opportunities accessed by voucher recipients and business opportunities support programme A number of youth entrepreneurs 1 500 entrepreneurs mentored A number of social enterprises financed by the NYDA A number of beneficiaries supported through social enterprise financing Value of finance provided to social enterprises R1 million R4. accessed by young entrepreneurs supported by the programme. 56 entrepreneurs The annual target was exceeded by six entrepreneurs. A number of loans issued to youth-owned micro-enterprises (NYDA and partner microloans) Value of loans issued to youthowned micro-enterprises (NYDA and partner microloans) A number of loans issued to SMEs Value of loans issued to youthowned small and medium enterprises R6 million R10. due to an increase in the allocated funding for each social enterprise. which increased the number of youth entrepreneurs who accessed vouchers. 500 new companies 502 new companies The annual target was exceeded by the registration of two companies.6 million R26 million The annual target was met and exceeded by R16 476 592. due to increased numbers of beneficiaries issued with vouchers for business support activities. due to the demand for microloans from young entrepreneurs Two enterprises financed 20 beneficiaries Three enterprises financed 20 beneficiaries 1 578 entrepreneurs The annual target was exceeded by 5.8 million The annual target was met and exceeded by R3 770 163. due to increased demand. due to the higher value of sourced opportunities than anticipated. 9 000 loans 9 899 loans The annual target was exceeded by 10%. The annual target was met and exceeded by 50%.8 million 12 loans 14 loans R9. The annual target was met.8%.6%. Reason for Variance NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 11 . The annual target was met and exceeded by 16. This was due to focused campaigns on mentoring young entrepreneurs. This was due to interest raised by young people in running social enterprises.

7%. The annual target was met and exceeded by eight departments.3%. 12 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . printing and distribution of the IYDS List of NYD priorities submitted to the Office of the Presidency Evaluation protocol of the IYDS 3 000 copies printed and distributed Submitted list of youth development priorities to the Presidency A number of partnerships established with government. 0 copies The target was not met. To identify annual national youth development (NYD) priorities The annual target was met. Reason for Variance KPA: Policy. The SME funding created more jobs than what had been anticipated by the programme. due to efforts made by the NYDA to extend available resources and increase the impact on young people. 2011/2012 Target 2 000 jobs Annual Performance 2011/2012 2 107 jobs The annual target was exceeded by 5. due to the fact that the NYDA has not yet received confirmation of approval by Cabinet. The annual target was met and exceeded by 3. 9 000 jobs 9 304 jobs 60 jobs 68 jobs 20 jobs 83 jobs The annual target was met and exceeded by 63 jobs. lobby and advocate for a uniform approach by all sectors on matters relating to youth development civil society and the private sector Government departments lobbied to establish youth directorates Five departments 13 departments 15 partnerships List of youth development priorities approved by the NYDA board and submitted to the Presidency. 48 partnerships The annual target was met and exceeded by 33 partnerships. Research and Development Goal: Developing a body of knowledge and best practice in the youth development sector to inform and influence policy development. The annual target was met and exceeded by 13. To promote.Goal: To enhance the participation of young people in the economy through targeted and integrated programmes Objectives Key Performance Indicator A number of jobs facilitated through business consultancy vouchers and business opportunities support services A number of jobs facilitated through financing of social To provide employment opportunities to young people enterprises A number of jobs facilitated through financing of SMMEs A number of jobs facilitated through microfinance lending A number of jobs facilitated through placements in job opportunities 1 000 jobs 1 017 jobs The annual target was met and exceeded by 1.4%. due to the increased job creation potential by the funded social enterprises. The annual target was met. The protocol was approved during the NYDA board meeting. Reason for Variance The Office of the Presidency has not provided the NYDA with confirmation of approval by Cabinet. planning and implementation Objectives Key Performance Indicator IYDS adopted by the NYDA Board and Cabinet To develop an IYDS and guidelines for the implementation of youth development programmes Evaluation protocol for IYDS developed Design. The NYDA put more effort into increasing the impact on youth development by encouraging more participation in other government departments.4%. 2011/2012 Target IYDS adopted by Board and Cabinet Annual Performance 2011/2012 IYDS adopted by the NYDA board and submitted to Cabinet for the approval process.

facilitate.Goal: Developing a body of knowledge and best practice in the youth development sector to inform and influence policy development. buy-in and support of partners of the programme. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 13 .(Grade 12-) rewriting programme 2011/2012 Target 2 000 learners Annual Performance 2011/2012 2 641 learners Reason for Variance The annual target was met and exceeded by 32.9%. and provide training and development opportunities to young people to enhance their socio-economic wellbeing Objectives To facilitate education opportunities. A number of young people attended entrepreneurship awareness programmes A number of youth attended Buy Youth Campaign training 15 000 youths 17 288 youths The annual target was met and exceeded by 15. 24 knowledge management publications Six submissions Nine submissions The annual target was met and exceeded by 50%. as a varied and more relevant training curriculum was made available. Increasing unemployment. This was due to increased numbers of young people who registered for the NYDA life-skills training programmes 200 youths 511 youths The annual target was met and exceeded by 155. 300 youths 358 youths The annual target was met and exceeded by 19.3%.3%.9%. due to the high enrolment of young people in the Youth Build programme. increased the popularity and demand for the programme services.10 000 youths preparedness training programme To facilitate and implement technical. Reason for Variance The target was met. entrepreneurship and lifeskills training programmes 13 035 youths The target was met and exceeded by 30.4%.3%. planning and implementation Objectives Key Performance Indicator Submitted Status of Youth report to the Office of the Presidency To conduct research and evaluations to inform policy and programme interventions A number of research project reports produced A number of programme and project evaluation reports produced A number of publications produced on youth development A number of written To provide inputs on policies and legislation by government and other relevant structures submissions on policies and legislation on youth development issues to the relevant departments A number of portfolio committee meetings attended 10 committee meetings 11 committee meetings The annual target was met and exceeded by 10%. A number of youth attended the job.4%. due to the higher Matric failure rate. due to the increase in important policies and legislation developed by public institutions.5% youth. due to unpreparedness of youth for placement in jobs. 2011/2012 Target Submitted final Status of Youth report Six research reports Annual Performance 2011/2012 Final report approved by board and submitted to the Presidency Six research reports The annual target was met. KPA: Training and Development Goal: To promote. This was due to the increased demand. 500 youths 647 youths The annual target was met and exceeded by 29. 10 evaluation reports 11 evaluation reports The annual target was exceeded by 10%. This was due to the high demand for the entrepreneurshipawareness programme at NYDA branches. due to unanticipated increased interest by young people to enrol in the technical skills training programme. which led to increased enrolment in this kind of programme. in order to improve access to quality education Key Performance Indicator A number of young people enrolled in the NYDA Matric. A number of young people attended the entrepreneurship and business management skills programme A number of youth attended the technical-skills training programme 5 000 youths 5 293 youths The annual target was met and exceeded by 5.1%. A number of youth attended the lifeskills training programmes A number of young people enrolled in Youth Build South Africa projects 2 000 youths 2 277 youths The annual target was met and exceeded by 13. 26 knowledge management publications The annual target was exceeded by 8.

5%. due to the high enrolment rate in the youth-work qualification training programme. due to an increase in demand for this programme. due to new youth publications supported by the NYDA. and referrals to other agencies An estimated number of youth provided with information and/ or referrals through the NYDA outreach programme A number of interactions with young people through the NYDA call centre A number of NYDA beneficiary stories published A number of NYDA portal visits 300 000 portal visits 437 452 NYDA portal visits 20 publications 67 publications 140 000 interactions 46 225 interactions The NYDA fell short of the target by 67%. due to an increased number of NYDA service points.Goal: To promote. due to a large number of new staff members. facilitate. The annual target was met. due to an increase in outreach activities to schools for this programme. especially after publication of the Matric results. 14 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . 100 000 young people 104 486 young people 397 400 youths 556 918 youths The annual target was met and exceeded by 40%. The annual target was met and exceeded by 90%.5%. especially the new local youth offices established at municipalities. the Telkom cable was stolen and services were affected for three to four months. The annual target was met and exceeded by 47 publications.8%. and an improvement in NYDA processes that required additional training for staff. including information and career guidance services to young people Objectives Key Performance Indicator A number of youth provided with individual career guidance To provide career guidance services information (one-on-one sessions) An estimated number of youth provided with group career guidance information A number of people receiving information and/or referrals from NYDA service delivery points To provide access to information regarding products and services of the NYDA. To provide administrative and operational support to service delivery A number of new local NYDA youth-information dissemination and access points A number of NYDA provincial offices established Three provincial offices Three NYDA provincial offices established 45 access points 61 access points The annual target was met and exceeded by 35. due to publicity and an improvement in the amount and quality of information available on the NYDA website. due to a relatively greater willingness by municipalities to sign agreements to establish youth offices than was anticipated. KPA: Youth Advisory and Information Services Goal: To ensure access by youth to information about various interventions aimed at improving the living conditions of young people. The annual target was met. The annual target was met and exceeded by 45. who joined the NYDA. Two unit standards aligned Two unit standards aligned 200 staff 379 staff 2011/2012 Target 12 interventions Annual Performance 2011/2012 19 interventions Reason for Variance The annual target was met and exceeded by 58%. 2011/2012 Target 2 600 youths Annual Performance 2011/2012 7 125 youths Reason for Variance The annual target was met and exceeded by 173%. The annual target was met and exceeded by 4. and provide training and development opportunities to young people to enhance their socio-economic wellbeing Objectives Key Performance Indicator A number of capacity-building To provide and facilitate capacitybuilding of youth development practitioners interventions were conducted for the youth development sector A number of staff members were trained to deliver on the NYDA mandate A number of accredited unitstandard-aligned learning programmes were registered with To facilitate youth development work as a recognised profession ETDP SETA towards the youth-work qualification A number of youth-development practitioners. 400 000 young people 543 890 young people The annual target was met and exceeded by 36%. During the 2011/12 financial year. who obtained unitstandard credits towards the qualification in youth work 10 practitioners 17 practitioners The annual target was met and exceeded by 70%. This was due to additional demands by the youth development sector for training interventions by the NYDA.

This is due to the fact that the majority of the NYDA microloan clients have just started their businesses and require a great deal of support before they can generate adequate profits to be able to pay off their debt. The value of financial support requested by youth-initiated projects meeting the NYDAsponsorship criteria for the year under review was less than the targeted value. The annual target was exceeded by 55. This was due to the NYDA’s drive to encourage the private sector to contribute towards youth development programmes. The annual target was not met.9%.3%. The NYDA fell short of the target by 95.6 million The annual target was exceeded by 19. This was due to the NYDA strategy for expanding partnerships with all sectors in funding youth development.9%. KPA: Governance Goal: To ensure that NYDA operations comply with applicable legislation and regulations governing a Schedule 3A institution Objectives To ensure compliance with all applicable statutes and policies To implement systems and processes to increase the recoverability of defaulting loans A decrease in the number of loans defaulting in the NYDA SME-loan book A decrease in the number of loans defaulting in the NYDA Micro-loan book 20% decrease in defaulters 3. or requested assistance from the NYDA for enrolment in tertiary education.7 million 10 bursaries Policies and procedures 2011/2012 Target Approved framework Annual Performance 2011/2012 The framework was approved by the Board of Directors The procedures were approved by the Board of Directors 10 scholarships 114 bursaries The annual target was exceeded by 104 bursaries. who applied for. The economic downturn led to youth entrepreneurs not being able to generate adequate profits to be able to pay off their debt. including information and career guidance services to young people Objectives To brand NYDA offices and project sites to improve the visibility of the NYDA Key Performance Indicator Some 95% of NYDA offices and access points branded 2011/2012 Target Some 95% of existing NYDA offices to be branded Annual Performance 2011/2012 Some 41% of existing NYDA offices are branded Reason for Variance The NYDA fell short of the annual target by 54%.Goal: To ensure access by youth to information about various interventions aimed at improving the living conditions of young people. The annual target was met. KPA: National Youth Fund (NYF) Goal: To establish a mechanism to enable the NYDA to raise funds for purposes of advancing and implementing programmes aimed at improving the livelihood of the youth Objectives Key Performance Indicator Approved framework for financial assistance by the NYDA Board Approved policies and To plan and set up the NYF procedures for management of the fund by the NYDA Board A number of bursaries awarded by the NYDA to youth to further their studies in tertiary institutions To mobilise and leverage financial assistance to small. Key Performance Indicator Adequate corporate governance. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 15 . Value of funds raised from the private sector for the NYF R30 million R46. thereby making it impossible for the NYDA to brand most of the local youth offices in the financial year. owned by youth To provide financial support to projects initiated by youth Value of funds invested in youth-initiated projects R20 million R0. This was due to an increased demand from qualifying students.8 million Value of funds raised for the NYF through partnerships R60 million R71. as most municipalities that signed agreements with the NYDA to operate local youth offices did not agree on the branding of their offices in time. micro and medium enterprises. and financial and operational controls 2011/2012 Target Unqualified annual audit report Cumulative Total Unqualified annual audit report 2010/11 Reason for Variance The annual target was met.6% Increase in defaulters 20% decrease in defaulters 17% decrease in defaulters The annual target was not met. Reason for Variance The annual target was met. and cooperatives.

in 2008. The term of the board ended on 30 April 2012. 16 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .NYDADIRECTORS BOARD OF Below are profiles of members of the NYDA Board of Directors for the year under review. he was elected Deputy Chairperson of the ANCYL’s Nelson Mandela Bay region and. François is passionate about youth development and the role that the youth can play in South African society. In 2005. including active involvement in establishing and developing ANC structures at UCT. having worked at UCT as a student development practitioner. later. having been the Chairperson of the South African Youth Council in the Nelson Mandela Bay Metropolitan Municipality in the Eastern Cape. Mr Lungisa is an experienced youth development worker. Yershen held various leadership positions. In 1998. In 2005. He serves on national and international bodies representing youth and is the President of the Pan African Youth Union. majoring in Politics and Economics. the South African Students Congress (SASCO). focusing on social assistance to poor communities. He has experience in the research and management of student affairs. He is also a playwright and poet. François Slabber | Non-Executive Director François Slabber is a graduate from UNISA with a background in Economics. He was elected Chairperson of the regional African National Congress Youth League (ANCYL). who has worked extensively in the creative fields in the Eastern Cape Province. as National Deputy President of the ANCYL. Andile Lungisa | Executive Chairperson Andile Lungisa was appointed Executive Chairperson of the NYDA Board of Directors in 2009. Political Science and Business Management. He also served in the Regional Executive of the ANCYL in the Nelson Mandela Bay Metropolitan Municipality. Mr Lungisa became active in politics in the early nineties. He is a former first-team rugby and cricket player and has worked as a manager of irrigation in the farming sector. a subsidiary of the trade union Solidarity. which included Port Elizabeth and Grahamstown. He is currently conducting research for the Freedom Front+. In 2001. serving as Secretary General of the Student Representative Council at UCT and a member of the University Senate Committee. He serves as the deputy leader of the Freedom Front+ Youth. he was the recipient of the UCT Deputy Vice-Chancellor’s Leadership Award. through the Congress of South African Students (COSAS) and. Mr Lungisa has worked as a detailer at M and Z Designers and is the founder of Makhanda Youth Projects. Yershen Pillay | Deputy Executive Chairperson Yershen Pillay is a Social Sciences graduate from the University of Cape Town (UCT). a subsidiary of the South African Music Promoters Association. he started an ANC Youth League branch in the western suburbs of Port Elizabeth and became a branch executive member. He is a former National Executive Committee member of the South African Union of Students (SAUS). and is currently working for Helpende Hand/Helping Hand. Yershen currently serves as the Chairperson of the Young Communist League of South Africa and in the Human Resource Development Council of South Africa. he was awarded The Herald Citizen of the Year award in the Arts and Culture category for his work in the field.

necessary for alleviating poverty. and the Regional Executive Council of the youth structure in the Southern Africa Federated Organisations for Disabled Persons. Mcebo Khumalo | Non-Executive Director Mcebo Khumalo is currently studying for a Bachelor of Social Sciences degree at the University of KwaZulu-Natal (UKZN) Howard Campus. with extensive exposure to project management. majoring in Political Science with Economic History and Development Studies as submajors. Maria is the founder of Youth with a Vision. Maria Tshabalala | Non-Executive Director Maria Tshabalala’s educational investment has been varied – from casting (dramatic arts) to computer and business studies. the Provincial Executive Council of the KwaZulu-Natal DPSA. focusing mainly on national community and youth business development for job creation purposes. Her professional highlights include the following: • • • • • Investment Officer — Development Bank of Southern Africa Non-Executive Board Member of the National Youth Development Agency Non-Executive Board Member of Saatchi and Saatchi Member of the Technical Committee of the Job Creation Trust (JCT). from sales to personal relationship management. Chairperson of the ANC Youth League Ward 94 branch. as well as delivering economic emancipation among the young public of South Africa. and member of the Provincial Executive Committee/Provincial Working Committee of the ANC Youth League. Western Cape.Innocentia Motau | Non-Executive Director Innocentia Motau is a qualified and experienced Chemical Engineer and was recently appointed as the Chief Executive Officer of Xpanse Investments (Pty) Ltd. the Provincial Chairperson of KwaZulu-Natal DYSA. Pholisa Makeleni | Non-Executive Director Pholisa Makeleni has extensive experience in the banking sector. She served as a member of the ANCYL National Executive Committee until the 24th National Congress in June 2011. Executive Director . She was employed in customer service by Johannesburg Water until June 2009. Mcebo worked as an educator and managed his own driving school business. Additional positions include Chairperson of the City of Tygerberg Youth Development Council. having worked for First National Bank for a number of years in various capacities. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 17 . She currently serves as a member of the Provincial Executive Committee (Gauteng) for the South African Youth Council and the National Executive Committee of the IFP Youth Brigade. and Secretary General of the Disabled Students Organisation at the University of KwaZulu-Natal. In the past. the South African Youth Council (SAYC). Entrepreneurship is her utmost passion and she views it as an important tool. She has been giving back to the community and enhancing her skills base by volunteering at the Protea Glen Police Station. the SABC Youth Advisory Panel. servicing both the public and private sectors in infrastructure development projects.Shosholoza Operations Innocentia’s passion for youth development is immeasurable and she thrives on participating in projects that see the young people of South Africa succeed. In addition to being a Non-Executive Director on the NYDA Board. Mcebo is a member of the National Council of Disabled People South Africa (DPSA). as well as corporate finance. he is also the Deputy National Chairperson of Disabled Youth South Africa (DYSA).

He obtained a B. He has also worked as the Director for Technical Services at Emakhazeni Municipality and recently as a Municipal Manager at Victor Khanye Municipality in Mpumalanga. and a B. Magdalene Moonsamy l Chief Operating Officer Magdalene Moonsamy holds an LLB degree from the University of Durban-Westville and several other certificates. one in Built Environment specialising in Property Valuation and Economics from the Nelson Mandela Metropolitan University. He is currently completing a Master’s Degree in Public Administration at the same university. Mpumalanga. He has also completed a doctoral research programme with the University of Stellenbosch. At the end of 2006. development practice. he joined the Rand Water Group and served 18 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . He was the Deputy Secretary General of the ANCYL until the 24th National Congress in June 2011. development facilitation. Tuks FM. In 2009 he completed the Public Practice Examination (Second Board Examination with Independent Regulatory Board for Auditors) and was admitted as a CA (SA) by the South African Institute of Chartered Accountants in 2010. she continues to serve in various developmental portfolios focusing on policy development and research and has interacted at both political and government levels. This frequent writer (both print and online) was nominated as one of Mail & Guardian’s 200 Young South African Achievers in 2012. including the Mpumalanga Town Planning and Townships Board and the Mpumalanga Heritage Council. he joined the Ellerines Holdings Group as Financial and Compliance Auditor. and public administration and management. His experience ranges from development planning. He has two Master’s Degrees. She is particularly committed to fighting for the most vulnerable in society: women. He has served in both the African National Congress Youth League (ANCYL) and the ANC at various levels. Com Hons (Financial Accounting) with CTA (Certificate of Theory in Accounting) from the University of KwaZulu-Natal in 2006. Ngubeni is also an activist. Venda in the Limpopo Province. He is the first and the sitting CEO of the NYDA. with his research focusing on performance management and youth development.NYDA Executive Managers The committee comprises of Executive Managers and General Managers in the CEO’s office operations executive committee Steven Ngubeni | Chief Executive Officer Steven Ngubeni started his professional career as a Town Planner at Terraplan Associates. Com Financial Accounting Degree from the University of Pretoria. having joined the Congress of South African Students in primary school. Ngubeni holds a degree in Town and Regional Planning from the University of Johannesburg. Khathutshelo Mike Ramukumba | Chief Financial Officer Born in Tshifudi village. Internationally Magdalene was engaged in the International Union for Socialist Youth and served in numerous international delegations. Ngubeni serves on various boards and councils. Magdalene is an activist for defeating all forms of oppression. and led the South African Youth Council in Nkangala District. In addition to her role as Chief Operations Officer at the NYDA. He served his articles with the Auditor-General of South Africa from 2003 to 2006. National Working Committee (NWC) member and Spokesperson of the ANCYL. youth and the poor. In 2006. Magdalene is a National Executive Committee (NEC) member. She is also an advocate for a progressive African economy. project management. Khathutshelo Mike Ramukumba attended Mphandeli High School. executive management and leadership. among which is a certificate in Cultural Diversity that she obtained from the University of Tubigen in Germany. In the last three years he had extensive exposure to the area of youth development. where he was also a radio presenter for the campus radio station. young girls. He later joined In-Site Design as a Senior Planner. She has served as Deputy Director of Policy at the National Department of Social Development. and another in Development Studies from the University of Port Elizabeth.

Daniel has also worked in various advisory roles to foreign governments and public institutions in Europe and the Middle East. the last being that of Group Internal Audit Manager. Edgar also established his own project management consulting business before joining Umsobomvu Youth Fund as a project manager. He later set up the Programme Management Office to manage all DCSA internal projects. Daniel van Vuuren started his career by serving articles of clerkship with Rossouws Attorneys. and addressed diverse international conferences. and consequently. Khathu is passionate about youth development. His career highlights include being involved in two ministerial directive projects on turnaround strategy and support: one in 2009 for Botshelo Water. which entailed internal and external communications. where she was an experiential learner. he represented the South African government in various bi-national and multi-national fora. During his tenure in The Presidency. All communications. on invitation. He is currently head of the NYDA’s Information Communication Technology Cluster. Com degree from Rhodes University. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 19 . His career in the development field spans over 15 years during which he held various positions at among others. continues to serve in various leadership positions within various youth organisations focusing on issues of young people across the board. He subsequently joined the office of The Presidency. While at The Presidency. Com degree from Rhodes University. the Transitional National Development Trust. legislative review and intergovernmental co-ordination. Edgar Mahura | Acting Chief Information Officer: Information Communication Technology Edgar Mahura started his career by serving articles of clerkship at Deloitte in Pretoria. Linda holds a National Diploma in Public Relations Management from Natal Technikon as well as B-Tech and M-Tech Degrees in Public Relations Management from Cape Technikon. now part of the Cape Peninsula University of Technology (CPUT). and the other in 2010/2011 for Bushbuckridge Water. he was a national youth commissioner responsible for youth policy development. In addition. media relations and stakeholder management.in various positions. of which 12 years were spent at Eskom. Crime Prevention and Security (JCPS) cluster. He holds a B. In her capacity as the Executive Manager: Communications at the NYDA. before joining Deloitte’s Computer Assurance Services division as a consultant. where he was one of the architects of both the legislative environment and policy framework governing youth matters. Linda Dlova is a member of the Public Relations Institute of South Africa. Linda commenced her career at Eskom in 1997. He then joined Daimler Chrysler South Africa (DCSA) as a project manager implementing SAP. He was the Chairperson of Youth against Crime at Vhumbedzi District in Vhembe Region in Limpopo from 2002 – 2003. He has acquired extensive experience in project design. She worked her way up through the ranks to Communication & Stakeholder Manager. Mzwabantu Ntlangeni | Acting Executive Manager: Corporate Partnerships Mzwabantu Ntlangeni holds a B. His current responsibilities at the NYDA include forging partnerships between the NYDA and key stakeholders inclusive of government and the private and civil society sectors. Linda’s overall role is that of reputation custodian. Linda Yolisa Dlova | Executive Manager: Communications Linda Dlova acquired her knowledge and experience in the field of corporate communications during a career spanning 14 years. he is responsible for international partnerships. particularly within the Justice. monitoring and grant financing for development initiatives. marketing and branding strategies form part of this portfolio. strategically positioning the NYDA positively in the minds of its various stakeholders by building and maintaining relationships. public relations. More recently. she gained further experience at Nedbank. This is driven through the initiation of dialogue through optimised communication platforms to influence interested and affected parties’ opinions and perceptions in order to solicit support for the NYDA’s strategic objectives. National Development Agency and Umsobomvu Youth Fund. Daniel van Vuuren | Executive Manager: Service Delivery Channel A law graduate from the University of the Free State.

He is currently reading towards obtaining a Master of Business Administration (MBA) Degree at the Management College of Southern Africa. civil society sector. Leeds University in the United Kingdom and Lusaka. including in Barcelona. facilitating the mainstreaming of youth development across government. Siviwe has also obtained a number of other formal qualifications in strategic public policy management. he currently serves as a member on a School Governing Body and a Community Policing Forum. He then moved to the corporate sector where he worked for Chris Hani Baragwanath Hospital. monitoring and evaluation. Spain. the environment. Tamari has acquired comprehensive experience in engineering and construction projects that enabled her to render services as a programme and project manager. She joined Umsobomvu Youth Fund in 2004 as a Programme Manager for the National Youth Service (NYS) programme. This includes skills development. He also presented papers at conferences locally and abroad. a programme manager (projects and contracts) and a property manager. Greater Sekhukhune District Municipality (Groblersdal) and Emalahleni Local Municipality as a Middle Manager in ICT and Administration. and fostering partnerships with civil society and the private sector to increase development opportunities for young people. Vincent remains passionate about education and the community. mentorship and training to business enterprises. at Eskom Electricity Generation and Distribution. Over the past 13 years. national. National Higher Diploma in Education and a B-Tech Post School. Zambia. and knowledge management. gender and poverty. Tamari joined the NYDA in June 2011 as an Executive Manager: Economic Development. Nthuseng has been mandated to oversee the implementation of the NYS and Skills Development programmes. He worked at the University of Cape Town from 2002-2007 as a lecturer and a researcher in the Faculty of Health Sciences. 20 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . She is currently completing two Master’s Degrees. Tembisa Hospital. Tanzania. a Degree in Quantity Surveying. research and in part strategic planning. an investment analyst. the Project Management Institute of South Africa and the Incorporated Member of the Chartered Institute of Building. one in Public Administration and another in Development Finance with the University of Stellenbosch (USB). Before joining the NYDA. He is a PhD student of the University of Cape Town. Her focus includes infrastructure development. he worked for the Insurance Sector Education and Training Authority (INSETA) as a Corporate Services Manager. Siviwe Mkoka | Executive Manager: Research and Policy Siviwe is responsible for the Research and Policy cluster of the NYDA. Dar es Salaam. She is a Registered Quantity Surveyor (PrQS) and a member of the Association of South African Quantity Surveyors. In 2007 Siviwe joined the Gauteng Provincial Department of Health as the manager responsible for strategic policy management. which includes policy. Vincent Mulaudzi | Executive Manager: Corporate Services Vincent Mulaudzi started his career in 1997 as a lecturer at Further Education and Training (FET) Colleges and taught for five years at both FETs and Technical High Schools. Her comprehensive experience allowed her to deliver professional services as a quantity surveyor. In her current position at the NYDA. Her accomplishments within the projects involved economic development. Whilst completing his Master’s Degree in 2004 he published scientific research papers in local and international peer-reviewed journals. a cost engineer/estimator. quantity surveyor and a development practitioner. She has more than 14 years’ development sector experience having held various positions in both government and civil society organisations. University of South Africa and the University of Pretoria.Nthuseng Mphahlele | Executive Manager: Skills Development and National Youth Service Nthuseng Mphahlele holds an MSc in Development Planning from the University of the Witwatersrand. She has worked in the mining sector. Tamari Tlangelani Mavasa| Executive Manager: Economic Development Tamari Tlangelani Mavasa holds a Master’s Degree in Built Environment (Property Economics and Valuations) from the Nelson Mandela Metropolitan University. project management and general management in the public and development sector from various universities across South Africa including University of Witwatersrand. research. and a National Diploma in Building Science. Her position at the NYDA is mandated to oversee the rural development and enterprise finance programmes and business development services. provincial and local Government. and consulting firms. He holds a National Diploma in Public Management and Administration. business and financial management.

Botswana. the network extended its programming to 13 countries in the Southern African Development Community (SADC) region.General Managers in the CEO’s office Clayton Peters | General Manager: Strategic Programmes Clayton Peters has worked extensively in the youth and development sectors over the past 16 years. He was the founder and Chief Executive Officer of the Youth Development Network. Prior to joining the NYDA in its present form. management and development and their inter-relationships in the context of the challenges present on the African continent. which has given him insight into enterprise risk management. She currently holds the position of General Manager: Corporate Strategy within the NYDA. He gained invaluable global experience while working on a United Nations project on youth employment. he has written extensively about the subject. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 21 . based in Boston. specifically public entities. where he was responsible for developing new programme areas around the globe. Swaziland. He has worked in Africa. he established the Risk Unit at Umsobomvu Youth Fund and served with the United Pharmaceutical Distributors and the National Lotteries Board. He completed his B. USA. She also completed the Executive Education Programme: Nepad African Leadership Programme at Wits Business School. Asia. including working in six SADC countries: South Africa. seven years’ experience in risk management. Mozambique and Zimbabwe while at the Kellogg Foundation. Teboho Sejane | General Manager: Corporate Strategy Teboho Sejane holds a postgraduate Degree in Industrial Sociology from Wits University. This postgraduate certificate programme explored the notions of leadership. Lesotho. He is busy completing his Master’s Degree in Development Management. She is part of the InterAction programme. Teboho worked for the National Development Agency (NDA) as Senior Manager: Economic Development before joining Umsobomvu Youth Fund in July 2005 as Manager: Process Cycle Management. Clayton was a director at YouthBuild International. he conducted in-depth research on global youth employment models for a World Bank-related study. the Middle East and Latin America. and ten years’ experience in the public sector. As the editor of South Africa’s first journal on youth development. With a team of researchers. Com Accounting and a postgraduate Diploma in Management Accounting at the University of Natal and a Programme in Risk Management at the University of South Africa’s Centre for Business Management. She has worked in the development sector for the past 14 years. run by the British Council. Under his leadership. involving a network of leaders from 19 countries across the African continent and focusing on strengthening leadership skills on the continent. Sanjay Hargovan | General Manager : Risk and Internal Audit Sanjay Hargovan is a member of the Institute of Risk Management South Africa (IRMSA). He has nine years’ experience in the accounting profession.

We are confident that the strategy Education still remains a critical focus area for our country. we have enrolled 2 641 learners in our target of 2 000 learners demonstrates the need for second-chance opportunities for our young people. the private sector. Our YouthBuild programme has the NYDA Matric rewriting programme. They continue to make colossal strides in politics. We have also assisted young entrepreneurs to access R36. The livelihood of young people was improved through the NYDA’s training programme in technical and business skills. The participated. policy development and programmes. Social commentators have described this as a ‘ticking time bomb’. This is a tool towards the concentrated coordination of youth development. Valuable inputs were received from government departments. and actively The fundamental concern that faces this country is youth unemployment. which is rally all key government and non-government stakeholders towards the a comprehensive implementation framework that will assist the NYDA to successful initiation. NYDA volunteered its infrastructure for the NPC Jam Sessions. was approved by the NYDA Board and submitted to the Presidency. 5. For youth development to succeed. and requires integration and mainstreaming for all stakeholders to play their part. The NYDA initiated a consultation process to develop the IYDS. which is critical for achieving progress for youth to develop the vision and the National Development Plan. as mandated by the NYDA Act. of which over 70% are youth between the ages of 15 and 35. development issues. To this end. They challenge the Youth development is an essential consideration for our country’s To ensure that the voices of youth are being heard. which enables them to secure employment and/or start their own business The Annual List of Youth Development Priorities. to engage more youth and make their voices heard. civil society. 22 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 enterprises in the future.TRANSITIONAL ACCOUNTING AUTHORITY REPORT Young people matter. The list is a practical guide to stakeholders and assists them in planning for youth development. skills and employment needs of young . It is a strong determinant of young people’s skills and capacity development. the NYDA Board approved the IYDS will provide coordination and concrete direction for youth development in South Africa. starts and crossroads. the NYDA has created 12 579 jobs and issued R32 million in loans to young entrepreneurs. civil society. It has its fits. design. arts. the NYDA readily engaged with the National Planning Commission to focus on youth development.8 million in funding opportunities to sustain and grow their businesses. evaluation and monitoring of all programmes aimed at integrating youth into the economy.96 million people were unemployed as at December 2010. youth organisations and young people To this end. in general. coordination. The fact that we have exceeded benefited 511 youth and continues to provide an innovative programme model for addressing the education. During the financial year under review. the private sector and within government. The input reflected the youth perspective and aspirations status quo while imagining the prospects and promises of what could be. development trajectory. and submitted it to Cabinet for approval. The inputs strengthened the relevance and quality of the IYDS. concentrated coordination is required. and society. culture. The NYDA is committed to addressing this fundamental issue through advocacy. themselves. Their contribution to this country has been historic. as a whole. The mandate of the NYDA requires the agency to coordinate youth development. According to the Quarterly Labour Force survey.

for a valid tax clearance certificate. Risk and Investment Committee. We will continue to grow the NYS The NYDA Board and the Transitional Accounting Authority have already above contributors to the significant disclosed irregular expenditure. the Human Resource and Remuneration Committee. With 54 785 young people engaged in service opportunities in the year under review. and create more service opportunities. as well as the Audit Committee.people. We thank the participating municipalities and partnered with the SABC to sponsor the One Day Leader reality TV Subsequent to financial year end the NYDA management had appointed three service providers. We The NYDA Board has provided governance and leadership to ensure that the agency meets its mandate and remains responsive to youth development matters. to increase the enrolment and performance of Physical Science learners. In September 2011 the tender process began. This is adequately disclosed in the notes to the Annual Financial Statements. service providers who had been listed on the NYDA database earlier than clearance certificates at the time of being listed. Transitional Accounting Authority NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 23 . and the unit has been re-capacitated to ensure The NYDA has expanded its national footprint by increasing its network to to more young people. have been very efficient in all Board and Board Committee members for their tireless efforts. and to inspire youth leadership In addition to the centralisation of key procurement functions to the supply chain management unit. thereby serving young people and the youth been able to record the success that we have achieved. development cause. The Provincial Advisory Boards (PABs) continue to advise the NYDA on provincial priority programmes. this resulted from the fact that no tender process was followed over 10 years ago. The Executive Management Committee. a check list that is signed by the manager of list requires amongst others. through an open tender process for travel and accommodation. critical roles for the procurement of goods and services to the supply compliance with all legislation. as together we Lastly. learn valuable skills and contribute to the nation’s development. Without your determined efforts. as part of our outreach to youth. the Credit. The NYDA board upon receipt of the Auditor-General’s Steven Ngubeni June 2012 accommodation services to the organisation. These divisions did I would like to extend much gratitude to President Jacob Zuma. we believe that more service opportunities must be created. During this period the respective divisions within the NYDA were responsible to source quotations directly from suppliers to procure goods and services and also file the quotations and all other not necessarily follow the correct supply chain management prescripts during the competitive bidding process. The Transitional Accounting Authority has noted the significant irregular expenditure incurred during the financial year under review. Our sanitary towels initiative towels. the NYDA management has centralised the instructed management to implement corrective actions regarding all the programme and will steadfastly advocate for government and civil society to initiate new service programmes. unfortunately due to unforeseen challenges the process took longer than was anticipated to finalise. 205 access points across all provinces. This check capability. supply chain in now required to be attached to each purchase. These service providers submitted valid tax tax clearance certificates expired and when goods and services were tax clearance certificates were not requested. Since November 2011. The NYDA show. Minister Collins Chabane and Deputy Minister Obed Bapela for their continued partners for working with us in addressing critical youth development can do more. I thank are happy and thankful to those provincial governments that have heeded the call in respect and recognition of the importance of prioritising youth development. The enduring work of this group of dedicated and committed young people has helped to ensure that the mandate. I would like to thank the employees of the NYDA for demonstrating commitment to their work. and presence. political guidance and support. however over time their procured from them by the various divisions withing the NYDA. we would not have The other contributing factor to the irregular expenditure disclosed in the notes to the financial statements is the travel and accomodation expenses when the relationship between the NYDA and BCD Travel was concluded report for the 2010/11 financial year instructed management to initiate a tender process to appoint a service provider to render travel and for the year. decide on the supplier to be used related documents received from the bidding process. We have also contributed towards education by providing mobile science laboratories to selected schools. Every young person must be given an opportunity to serve their community chain management unit. The other contributor was the procurement of goods and services from the 2011/12 financial year. assisting the NYDA Board with performing its functions with ease. I am grateful to all our stakeholders and challenges. and country. listed on the NYDA supplier database. resulting in increased accessibility civil society partners for making their infrastructure available. new valid supports female learners from disadvantaged schools with free sanitary Youth service is a powerful platform for young people to strengthen their positive engagement with communities. of the NYDA filters down to provincial level. The of the procurement of goods and services to divisions with the supply main contributor to the irregular expenditure has been the decentralisation chain management unit only playing an advisory role for the period 01 April 2011 to 31 October 2011. I hope that they continue to support the NYDA.

Chief Executive Officer: Steven Ngubeni 24 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

the NYDA finalised the IYDS. The NYDA Board approved the IYDS and submitted it to Cabinet for approval. These documents contribute to the growing body of knowledge required for good youth development policy and practice. with clearly outlined objectives and indicators. we intended to improve the These partnerships are critical for leveraging support for youth development and making it everybody’s business. the NYDA issued R26 million in microloans against a target of R9. we established 48 partnerships with government. We also issued R10. There has clearly been a gradual improvement in the performance of the agency. i. against a target of R20 million Through our Training and Development KPA. our aim was to create job opportunities and provide various business support services.6 million. our aim was to promote opportunities for youth to serve their communities and to create platforms for youth participation and youth social networks. 2011/2012. This also confirms our claim that the NYDA is committed to a course of youth development in South Africa and the world. It only confirms the resounding plea that all energies and efforts by government.8 million in loans to SMEs. Under the NYS and Social Cohesion KPA. With the funding opportunities accessed. sound management and prudent financial stewardship. For its third financial year. thereby coordinating and promoting youth development.CHIEF EXECUTIVE OFFICER’S REPORT I take pleasure in presenting the third annual report of the NYDA. with 54 785 young people serving their communities while gaining skills and experience. civil society and the private sector. With Youth Month being a seminal activity in the annual calendar. This represents an increased year-on-year performance achievement rate of four percent and is proof of the fact that resources are being evenly allocated throughout all our KPAs. most of which were exceeded. In early 2011. including financing. the NYDA was at a 90% performance achievement rate. Research and Development KPA aims to develop a body of knowledge and best practice to inform and influence policy development. after many months of thorough and exhaustive consultation. It must be noted that 12 579 jobs were created. This plan was communicated to Parliament through its portfolio committee and subsequently made public.3 million. which is also the last annual report in which we account for the work performed under the auspices of the first Board of the NYDA. owing to the youth development approach we have adopted. To this effect. For the year under review. To this effect. A total of 17 municipalities. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 25 . we are on the mark in directing and focusing all energies in favour of the youth of South Africa. were mobilised to participate in Youth Month celebrations. Overall. This annual report is based on the same approved and communicated annual performance plan. many of these young entrepreneurs were able to sustain their businesses and take them to the next level. as well as on a year-on-year basis. I am well aware of the growing state of anxiety and impatience among the youth regarding the pace at which youth development services are being delivered. for approval by the Presidency and the National Treasury. a total of 31 000 youth. the NYDA produced a total of 44 research reports.e. against a target of 10 000. the performance levels were exceptionally high. The annual performance plan covered seven KPAs. 63 out of 70 targets were met. Despite its limited resources. We met all 18 targets under this KPA. Under our Economic Participation KPA. we submitted an annual performance plan for 2011/ 2012. Our Policy. evaluations and knowledge management publications. Funding opportunities to the tune of R33. The mandate of the NYDA is to coordinate and promote youth development issues. planning and implementation for youth development. All targets were met for this KPA. and against a target of 15 partnerships. the Auditor-General has once again awarded the NYDA with an unqualified audit opinion. against a target of eight. The Board also approved the Annual National Youth Development Priorities (ANYDP) and submitted it to the Presidency. with emphasis on a few issues. Youth development is ‘everybody’s business’. The NYDA celebrates this achievement as a yardstick for good governance. For the financial year ended 2010/2011. the private sector and civil society should be directed towards the development of South Africa’s future. The IYDS and the ANYDS shape and guide youth development in the short and medium term. the NYDA was at an 86% performance achievement rate. I remain optimistic that. compared to a target of 12 080. were assisted with establishing Youth Councils as a platform for meaningful youth engagement. For the year under review. were facilitated for the benefit of young entrepreneurs.

Mr Andile Lungisa. we were able to provide 556 918 youth with career guidance information. civil society and the private sector. the NYDA awarded 114 bursaries and 10 scholarships to deserving students. The NYDA resource allocation has not increased. We remain committed to working with you in realising your limitless potential. even when the environment suggested otherwise.7 million in funds from the private sector to contribute towards youth development. With its limited resources. We met all of our 12 targets within this KPA. we enrolled 2 644 learners. Another matter of concern is that more than 500 000 young people leave the school system every year. Against a target of 397 400 youth. lack of skills and poverty. We exceeded our local youth information dissemination and access points by 35%.matriculation results. we remain optimistic for a better future for our young people. however. provide youth with life. sometimes in very unhealthy and destructive ways. we were able to provide 543 890 youth with information and referrals through our outreach programme.5 million of funds through partnerships for the NYF. These points are critical to ensuring that young people access the information they need at the right time and place. against the meagre interventions from the NYDA and government. I thank our stakeholders and partners. I wish to extend our gratitude to Minister Collins Chabane and Deputy Minister Obed Bapela for their guidance and continued support. Our Youth Advisory and Information Services KPA aims to ensure access by youth to information about various interventions. With a target of 2 000 learners enrolled in the NYDA Matric rewriting programme. with the majority not entering any further education. the NYDA will continue to galvanise and secure partnerships to leverage its youth development investment. We met seven out of nine targets and exceeded the targets that were met. we met our target of setting up the fund with the Board approving the framework. We exceeded our target of R30 million by raising R46. We are ‘The limitless youth of SA’ and we are the ‘present and the future’. We believe in the limitless potential that NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 our youth have to break the bondages of unemployment. will continue to receive attention and focus. We also exceeded our target of R60 million by raising R71. thereby exceeding our target by 32 percent. Skills development and training. as well as build the capacity of youth workers. You have remained the pillars of strength to the leadership of the NYDA. government. pro-actively responding to the needs of young people. For the NYF KPA. Steven Ngubeni Chief Executive Officer June 2012 26 . for their continued support. Our concern is that the magnitude of the youth challenges and youth development backlogs render our achievement a drop in the ocean. With a target of 400 000 youth. technical and business skills. I thank the youth of South Africa for being our partners in development. as a whole. because too many young people remain outside of the NYDA’s achievement rate. I am also grateful to the staff of the NYDA for holding up. employment or training programmes. municipalities. You are the limitless youth of South Africa. including the Parliament of South Africa. in particular. and the Deputy Executive Chairperson. I also wish to thank the outgoing Board and especially the Executive Chairperson. Their leadership and governance ensured that the sound foundations were properly laid for the NYDA to be a worldclass agency. with a target of 45 access points and performance of 61 access points. Mr Yershen Pillay. In conclusion. On the contrary. Lastly. it has decreased. policy and procedures. thereby increasing the youth development backlogs. despite the considerable backlogs and demand from young people. It is disconcerting that youth justifiably continue to complain and protest. Despite all these concerns. Exceeding a target of awarding 10 bursaries.

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 27 .

OPERATIONAL REVIEW REPORT AGAINST KEY PERFORMANCE AREAS 28 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

NYF – for the NYDA to achieve sustainability. the institution has consolidated its operations and streamlined its business operation model. to establish a mechanism to enable the agency to raise funds for purposes of advancing and implementing programmes aimed at improving the livelihood of the youth. The large youth population cohort can create new economic growth opportunities. to be tabled before Cabinet in the course of the coming year. albeit in an environment of limited funding from the state. the very high unemployment rate among the youth. Like most developing countries. NYS and social cohesion — this operational area seeks to promote youth social dialogue and create opportunities for young people to serve their communities. and the challenges faced by the youth of South Africa. the NYDA has produced some pioneering documents profiling and providing a national framework for approaching sustainable youth development. 5. the NYDA has sharpened its strategic operation areas to respond to its mandate. the Context of Youth in South Africa. thereby fostering economic growth through human resources made available by the youthfulness of the population. works with stakeholders from all sectors in the implementation of youth development programmes. The implications are that the country is likely to be faced with high dependency ratios in respect of young people who are not contributing positively towards the economic growth of the country. Training and development — programmes and initiatives in this area seek to promote. the NYDA consolidated its KPAs. In its modest lifespan. it could result in social and developmental catastrophes. which gives an account of the state of young people in South Africa. Governance – as a state-funded institution. and the high incidence of young people committed to correctional services. there was a need 6. The youth demographic profile in South Africa suggests that the youth bulge has the potential of increasing the labour market pool of the country. as they provide all sectors of the economy with a blueprint for viewing and approaching youth development issues. while this age group is also growing more rapidly than the national population. effective and developmentoriented public service and an empowered. fair and inclusive citizenship. creating a better South Africa and a better world with vibrant. Considering that the main mandate of the NYDA is the mainstreaming and integration of youth development in all sectors of society. the NYDA has to ensure 7. research and development – this area focuses on developing a body of knowledge and best practice in the youth development sector. there is also a genuinely high expectation from the public and youth population. These documents are a positive milestone for the youth of the country. planning and implementation. as prescribed by the NYDA Act. Strategic Focus During the year under review. Basic living conditions for South African youths fall below the levels of other age groups of the population. At the same time. a skilled and capable workforce to support an inclusive growth path. The conclusions reached raise pertinent issues facing the young people of South Africa. if not properly managed and supported. The vulnerability to poverty is high for young people. and development. Policy. who are economically active. in order to inform and influence policy development. In its strategic planning session. 2008 (Act 54 of 2008). The NYDA is faced with a vast mandate for one individual organisation. seeks to ensure the access by youth to information about various interventions aimed at improving the living conditions of young people. as prescribed by the NYP. These were: 1. if developed effectively by the country. as there are fewer young people. required by the labour market. therefore. decent employment through inclusive economic development. including: the quality of basic education. and the Status of Youth Report. including information and career-guidance services to young people. the youth of South Africa are faced with a number of challenges. Economic participation – this operational area initiates programmes and projects that will enhance the participation of young people in the economy. 2009–2014. published by the NYDA in December 2011. facilitate and provide training. especially if the youth population is not well monitored and their needs are not addressed by the country’s policies and programmes. proportionally to age group structure. Consequently. and the poor health status of youth with high-risk behaviour. which were adopted by the NYDA Board to form the pillars of its operation for the financial year. especially those below the age of 24. The Context of Youth report reviewed all aspects relating to youth development. equitable and sustainable rural communalities. the poor quality of basic education and lack of basic skills. an efficient. in general. through targeted and integrated programmes. as a result of the high prevalence of substance abuse. These issues may be summarised as relating to: the increasing population of young people. The agency recognises that it is not a panacea for youth development and. During the year under review. In pursuing their aspirations for a sustainable livelihood. due to the widening gap between rich and poor. This has the potential of further increasing inequalities. South Africa has a large population of young people. the NYDA has contributed towards a number of government priorities. The operational review section of the annual report covers the year under NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 29 .Introduction The NYDA has been in existence for three years. 4. These documents are: the draft IYDS. Youth advisory and information services – this operation area 3. for the NYDA to deliver sustainable programmes that are meaningful for improving the livelihood of the youth in South Africa. among young people. opportunities to young people to enhance their socio-economic wellbeing. 2. that its operations comply with applicable legislation and regulations governing a schedule 3A institution.

For the year under review. These included programmes on NYS. The NYDA has implemented a number of programmes. Programmes that are implemented by the NYDA against this KPA aim to provide business support to young entrepreneurs. and create and support social networks to benefit young people. on a quarterly basis.review. the NYDA met the targets and. create a platform for young people to participate in and benefit from democratic processes. the NYDA has improved its performance since inception. which assisted young people to fully participate in the projects. In all the KPIs listed in the table. to provide financing opportunities for young entrepreneurs. Table 2: Activities for the Creation of Youth Networks Key Performance Indicator A number of volunteer mentors participating in the NYDA mentorship programme A number of opportunity providers participating in the Buy Youth campaign A number of youth supported through social and health interventions 2011/2012 Target 300 volunteers mentors 300 opportunity providers 3 000 youths Q1 52 Q2 21 Q3 11 Q4 248 Annual Performance 2011/2012 332 volunteers mentors 15 0 26 0 25 0 253 3 460 319 opportunity providers 3 460 youths Economic Participation The main goal of the economic participation programme is to enhance the participation of young people in the economy through targeted and integrated programmes. where key performance indicators (KPIs) are compared against yearly targets. This was due to the extra effort put in by the NYDA to ensure that young people have access to these services.registered projects A number of local municipalities assisted to establish youth councils A number of hosted dialogue sessions with young people A number of young women mobilised towards the 16 Days of Activism (against violence and abuse of women and children) A number of youth participating in Youth Month Celebrations 10 000 youths 31 000 0 0 0 31 000 youths 500 young women 0 327 178 0 505 young women Eight local municipalities Four sessions 1 2 2 3 4 0 10 3 17 municipalities Eight sessions 40 000 youths 5 658 22 757 2 243 12 393 43 051 youths 10 000 youths 8 562 441 701 2 030 11 734 youths 2011/2012 Target Q1 Q2 Q3 Q4 Annual 2011/2012 The NYDA has created platforms to assist young entrepreneurs with establishing networks that can accelerate their business operations. and the participation of young people in the celebrations of Youth Day. Table 1 below indicates that the NYDA has performed well against the predefined KPIs for this KPA. In addition. the NYDA created a number of platforms that promote youth participation in their development. The programme resulted in a number of business opportunities being made available to young entrepreneurs across the country. 63 KPIs. This suggests that the institution is stabilising its operation and is maturing. and create opportunities for young people to serve their communities. These include establishing a pool of business mentors that can volunteer their time to assist young people with improving their business operations. to monitor performance. This represents a 90% achievement rate. In addition. it exceeded the targets. the participation of young women in the 16 Days of Activism against Women and Child Abuse. the NYDA has been running a programme that seeks to link business opportunity providers with the products and services of young entrepreneurs. There are indications that the operations are stabilising. were achieved. out of a total of 70. In general. This KPA seeks to promote opportunities for young people to serve their communities. in some areas. where they could discuss and debate issues relating to youth in the country. This may suggest that the NYDA is maturing quickly and gaining its operation momentum.7% for 2010/11 and 22. Table 1: Activities Promoting Youth Participation in Democratic Processes Key Performance Indicators A number of youth serving their communities through NYDA-funded projects A number of youth serving their communities through NYSU. and to provide employment opportunities for the youth. These included the establishment of local youth councils within municipalities and the holding of a number of dialogue sessions with young people. NYS and Social Cohesion The goal of the NYS and Social Cohesion KPA is to promote youth social dialogue.1% for 2009/10. 30 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . as compared to 85.

During the year under review. who have assisted them in improving their business operations. the agency managed to issue 2 239 business-support vouchers. The business-support voucher programme has also assisted young entrepreneurs in accessing business opportunities that require specialised business skills to compete with other businesses in the market. The NYDA has been running a programme that assists young people to register their companies through the Companies and Intellectual Property Commission (CIPC). managed to link 1 578 young entrepreneurs to experienced business people. young entrepreneurs have been assisted with completing tender and other procurement documents required to successfully bid for advertised business opportunities. which aims to provide young entrepreneurs with business-support services that can enhance their enterprises. even when the target has been met. which reflected an achievement of 179% above the set target. the NYDA’s target was to provide 800 business vouchers to young entrepreneurs. thereby limiting their potential to grow. and access funding and business opportunities that would help their enterprises to develop and compete in the business sector. Through these NYDA programmes. A survey by the Youth Context publication shows that young entrepreneurs are not registering their businesses. young people have not been turned away. The mentorship programme during the year under review. Regardless of limited resources allocated to the agency. even when suffering financial constraints.Table 3: Young People Provided with Business Support Services 2011/12 Key Performance Indicator A number of business support vouchers issued to youth entrepreneurs A number of youth beneficiaries supported through business consultancy vouchers and business opportunities support services A number of youth-owned companies assisted with registration with CIPC A number of youth entrepreneurs assisted to access funding and business opportunities through the voucher and business support programmes The value of funding and opportunities accessed by voucher recipients. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 31 . This motivates the NYDA to continue offering these services to young people. However. and the business opportunities support programme A number of youth entrepreneurs mentored 1 500 entrepreneurs 538 364 119 557 1 578 entrepreneurs R20 000 000 R6 805 384 R19 210 267 R2 999 417 R4 338 877 R33 353 945 50 entrepreneurs 25 entrepreneurs 14 entrepreneurs 9 entrepreneurs 8 entrepreneurs 56 entrepreneurs 500 new companies 6 new companies 20 new companies 3 new companies 473 new companies 502 new companies 2 000 beneficiaries 309 beneficiaries 493 beneficiaries 442 beneficiaries 1 032 beneficiaries 2 276 beneficiaries 800 vouchers 289 vouchers 404 vouchers 236 vouchers 2011/2012 Target Q1 Q2 Q3 Q4 1 310 vouchers Annual Performance 2011/2012 2 239 vouchers The NYDA has been supporting young entrepreneurs through its business-support voucher programme. This process has allowed youth-owned businesses to access financing for their businesses and comply with statutory requirements for businesses in South Africa. but provided with the service. The aim of this effort is to increase the market share of youth-owned companies competing in the open business market and meeting all the regulatory requirements to access tendering opportunities provided by the public and private sectors.

with a real possibility of providing more jobs than privately owned companies. Table 5: Employment Opportunities to Young People through NYDA Programmes Key Performance Indicator A number of jobs facilitated through business consultancy vouchers and business opportunities support services A number of jobs facilitated through financing of social enterprises A number of jobs facilitated through financing of SMMEs A number of jobs facilitated through microfinance lending A number of jobs facilitated through placements in job opportunities 2011/2012 Target 2 000 jobs Q1 490 Q2 440 Q3 476 Q4 701 Annual Performance 2011/2012 2 107 jobs 20 jobs 60 jobs 9 000 jobs 1 000 jobs 0 54 2 425 116 8 0 1 643 196 75 14 1 795 222 0 0 3 441 483 83 jobs 68 jobs 9 304 jobs 1 017 jobs As part of reducing unemployment among the youth in South Africa. Due to the need among young people to access loans as a sustainable means of job creation and active economic participation. which have proven to be the main drivers for economic participation by young people in South Africa. the NYDA has initiated and implemented programmes that seek to create sustainable jobs for young people. given the climate of high unemployment for young people in South Africa. The financing of entrepreneurship has the potential of providing jobs for young unemployed youth. Co-operatives are more likely to assist more young people to actively participate in business ventures. therefore. The NYDA is deliberately exploring this approach towards creating employment and youth participation in business. critical for the agency to continue funding young entrepreneurs as a means of creating self-employment for them. These programmes include crating self-employment jobs though financing youth enterprises. During the year under review. providing services that promote 32 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . have the potential to improve the livelihood of young people in South Africa. which included the funding of three social entrepreneurs. The NYDA has managed to issue 9 913 micro and SME loans during the year under review. however. Social enterprises. is access to financial support. It is. especially cooperatives. have a problem with accessing loans from commercial banks. Most of the young people entering business for the first time. During the year under review. which was more than double the target. which see them as high risk with no collateral. the NYDA set a target of R15. the NYDA was able to issue loans valued at R36 854 529.Table 4: Young Entrepreneurs Provided with Financing Support Key Performance Indicator A number of social enterprises financed by the NYDA A number of beneficiaries supported through social enterprise financing Value of finance provided to social enterprises A number of loans issued to youth-owned micro-enterprises (NYDA and partner microloans) The value of loans issued to youth-owned micro-enterprises (NYDA and partner microloans) A number of loans issued to SMEs The value of loans issued to youth-owned small and medium enterprises R6 000 000 R2 513 382 R2 346 763 R4 171 772 R1 746 020 R 10 777 937 12 loans 4 1 6 3 14 loans R9 600 000 R5 803 320 R4 924 437 R4 738 741 R10 610 094 R 26 076 592 9 000 loans 2 307 1 619 1 666 4 307 9 899 loans R1 000 000 R0 R2 114 375 R2 440 876 R214 912 R4 770 163 20 beneficiaries 0 7 13 0 20 beneficiaries 2011/2012 Target Two enterprises financed Q1 0 Q2 1 Q3 2 Q4 0 Annual Performance 2011/2012 Three enterprises financed One of the biggest challenge faced by young entrepreneurs. These efforts are geared towards providing access to financing. especially microloans. especially those entering the business environment. The NYDA has provided a vehicle for young Development Funding Institutions established by the state. the NYDA managed to issue 9 899 microloans to youth entrepreneurs and 14 SME loans.6 million for micro and SME loans to young people.

research and development KPA is to create a body of knowledge and best practice in the youth development sector. The NYDA has developed the strategy through a process of consultation with young people. planning and implementation. to inform and influence policy development. The frameworks and tools developed during the year under review will assist all sectors to integrate and mainstream youth development in their operations. by sectors. the NYDA completed the Status of Youth Report after rigorous research and consultation with sectors of the society. According to the Act. Section 6 (1) of the NYDA Act also requires the agency to submit a Status of Youth report to the Presidency every three years. globally. Most new jobs were created through the financing of micro-enterprises and business support. including the youth formations of the country. the NYDA developed guidelines for the implementation of the areas outlined in the NYP. This indicates that the agency has reached its organisational maturity.job creation through business support programmes and placement of young people in the job market. which accounted for 91. in order to measure its effectiveness in addressing the youth development challenges and programmes outlined. and presented the draft strategy to the NYDA Board for adoption. as well as giving South Africa a competitive edge. During the year under review. In the year under review. 2009–2014. the agency also developed and produced a list of national priorities for youth development in the country. Research and Development The goal of the policy. The NYDA developed an evaluation protocol for the IYDS to monitor its implementation. Section 3 (1) (b) and (g) require the NYDA to develop guidelines for the implementation of the NYP. and the public. if implemented on a large scale. a total of 12 579 opportunities for self-employment and job placement were achieved for young people. Research and Development Key Performance Indicator Design. the agency aspired to meet all the legislative mandates stipulated. private and civic society sectors. based on a body of knowledge and facts that are relevant to the developmental needs of the youth of South Africa. 2008 (Act 54 of 2008). The NYDA has initiated and implemented a number of programmes that seek to ensure that youth development is informed by current information and good practice.9% of all jobs created by the NYDA in the year under review. Policy. and can perform its functions effectively and efficiently. The fundamental aim of this area is to ensure that policies and frameworks that drive youth development are developed. The list gives the country clear direction on how all sectors should prioritise in the implementation of programmes that respond to the needs of the youth in South Africa. The draft of the Status of Youth report was adopted by the NYDA Board and presented to the Presidency for consideration as a final report. and subsection (g) requires the agency to establish national youth priorities for youth development. This operational area of the NYDA is responsible for developing the IYDS and plan. and responds to current needs of young people in the country. All the targets set for the programmes implemented by the NYDA were achieved and surpassed. These guidelines provide an operational framework for the response and design of programmes. Table 6: Performance against Targets for Policy. The President will present it to Parliament on a date to be announced by him. The strategy was submitted to the Presidency for consideration and for tabling in Parliament for adoption as a national framework for youth development. The year under review is the third year of operation of the agency. During the year under review. Through a consultative process. as required by Section 3 (1) (a) of the NYDA Act. in accordance with issues outlined in the NYP. This may suggest that microfinancing and business support programmes are a viable option to address youth unemployment in the country. printing and distribution of the IYDS A number of partnerships established with government civil society and the private sector Government departments lobbied to establish youth directorates A number of research project reports produced A number of programme and project-evaluation reports produced A number of publications produced on youth development A number of written submissions on policies and legislation on youth development issues to the relevant departments A number of portfolio committee meetings attended 10 Committee Meetings 2 3 4 2 11 meetings NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 2011/2012 Target 3 000 copies printed and distributed 15 partnerships Q1 0 6 Q2 0 7 Q3 0 11 Q4 0 24 Annual Performance 2011/2012 0 copies 48 partnerships Five departments Six research reports 10 evaluation reports 24 knowledge management publications Six submissions 1 0 3 2 1 1 6 2 1 4 3 6 13 Departments Six reports 11 evaluation reports 5 3 10 8 26 knowledge management publications 1 1 7 0 Nine submissions 33 .

The programmes under this KPA include technical.6% of young people who followed skills training programmes presented by the NYDA. with the objective of facilitating education opportunities. the NYDA made submissions to government policies and legislation. and the importance of fundamentally mainstreaming youth development in all sectors. dedicated to ensuring that youth development is mainstreamed and integrated in those departments. however. to ensure that their programmes contributed towards youth development. the agency is also aware that. the agency has initiated and implemented programmes that provide job-preparedness training and assist young people who have failed Matric to rewrite some of the subjects they have failed. 34 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . due to the fact that the IYDS was not adopted by Cabinet during the year under review.(Grade 12-) rewriting programme A number of young people attended the entrepreneurship and business management skills programmes A number of youth attended the technical skills training programme A number of youth attended the jobpreparedness training programme A number of youth attended the life skills training programme A number of young people enrolled in Youth Build South Africa projects A number of young people attended the entrepreneurship awareness programmes A number of youth attended the Buy Youth Campaign training 300 youths 12 29 140 177 358 youths 15 000 youths 8 539 1 708 4 352 2 689 17 288 youths 500 youths 10 000 youths 2 000 youths 200 youths 477 2 178 1 005 0 0 2 664 998 80 170 2 467 174 0 0 5 726 100 431 647 youths 13 035 youths 2 277 youths 511 youths 5 000 youths 1 326 1 588 657 1 722 5 293 youths 2 000 learners 0 0 0 2 641 2 641 learners 2011/2012 Target Q1 Q2 Q3 Q4 Annual Performance 2011/2012 During the year under review. the NYDA was able to assist 42 050 young people to either undergo technical skills training. The majority of young people assisted under this KPA were young entrepreneurs. During the consultation period of the IYDS. As part of its lobby and advocacy role. facilitate. business and life skills training for young people. private and civic society sectors. and can grow. business management skills training. the NYDA lobbied 13 national government departments to establish youth directorates. to ensure that the legislature took the mainstreaming and integration of youth development seriously when overseeing the work in all government departments. who followed our enterprise awareness programme. Skills development and education are important priorities for the agency in its quest to contribute to the youth of the country. To respond to this challenge. job-preparedness training or life skills training. this activity was not performed. However. and facilitate and implement technical. research and development target was to print and distribute 3 000 copies of the IYDS.The policy. for entrepreneurs to be successful. and provide training and development opportunities to young people to enhance their socio-economic wellbeing. The printing and distribution of the final IYDS will be done in the coming financial year. once the strategy has been adopted by Cabinet. In addition. entrepreneurship and business management training have been measured outputs of the agency. In addition. the NYDA ensured that partnerships were developed with various sectors of economy. Training and Development The goal of this KPA is to promote. including youth formations. Throughout the NYDA’s existence. This is due to the fact that there are only a few youth entrepreneurs in the country and those that venture into business are often not successful. During the year under review. The aim is to improve access to quality education. and the Buy Youth Campaign training programme. Table 7: A Number of Young People Provided with Education and Skills Development Interventions Key Performance Indicator A number of young people enrolled in the NYDA Matric. the entrepreneurship and business management skills programme. the agency provided business management and entrepreneurship skills to 5 293 young entrepreneurs during the year under review. At the same time. the NYDA established 48 partnerships with the public. These programmes accounted for 54. and attended and made presentations in 11 parliament portfolio meetings. they need the skills and capacity to ensure that their enterprises are sustainable. With an understanding of the complexities and magnitude of the challenges facing young people. One of the contributing factors to their failure is lack of business management skills. the NYDA printed and distributed over 5 000 copies of the draft IYDS to different sectors. or enrol in the Matric-rewriting programme. entrepreneurship and life skills training programmes for young people in South Africa.

In the year under review. the NYDA managed to run 19 capacity-building sessions for the youth-development sectors. is one of the limiting factors for young people.e. These sessions ranged from basic youth development to the project management of programmes. During the year under review. As part of the NYDA mandate to build capacity among its staff to deliver quality and effective services. Table 9: Young People who Received Information and Visited the NYDA Service Centres Key Performance Indicator A number of youth provided with individual career-guidance information (one-on-one sessions) An estimated number of youth provided with group career-guidance information A number of people received information and/or referrals from NYDA service-delivery points An estimated number of youth provided with information and/or referrals through the NYDA outreach programme A number of interactions with young people through the NYDA call centre A number of NYDA beneficiary stories published A number of NYDA portal visits 397 400 youths 100 000 young people 400 000 young people 140 000 interactions 20 publications 300 000 NYDA portal visits 111 000 24 783 87 136 28 382 31 352 15 725 327 430 35 596 556 918 youths 104 486 young people 2 600 youths 718 1 151 558 4 698 7 125 youths 2011/2012 Target Q1 Q2 Q3 Q4 Annual Performance 2011/2012 143 956 82 897 38 619 278 418 543 890 young people 12 797 51 88 230 13 533 0 94 063 7 958 14 97 662 11 937 2 157 497 46 225 interactions 67 publications 437 452 NYDA portal visits NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 35 . Access to information. and. internally and externally. through its Centre for Youth Development Practice (CYDP). a total of 17 youth practitioners enrolled and successfully obtained full credits towards a youth-work qualification from the NYDA CYDP. i. In addition. Youth Advisory and Information Services The main aim of the youth advisory and information services KPS is to ensure access to information about various interventions. Table 8: Capacity-building Interventions for the Youth Development Sector Key Performance Indicator A number of capacity-building interventions conducted for the youth development sector A number of staff members trained to deliver on the NYDA mandate A number of accredited unit-standard-aligned learning programmes registered with ETDP SETA towards the youth-work qualification A number of youth development practitioners. In the year under review. aimed at improving the living conditions of young people. in addition. to improve their skills and capacity to deliver youth development programmes. and referrals to other agencies. after realising that most young people are ill prepared to present themselves appropriately during job interviews. aimed at developing young people. aimed at assisting young people in improving their skills in job hunting. a training arm of the agency. a total of 379 staff members attended training courses. the NYDA managed to register two training unit standards with the ETDP SETA. access to information regarding products and services of the NYDA. CV preparation and job interviews. 13 035 young people attended these training workshops. the NYDA initiated and implemented programmes that can provide and facilitate the capacity-building of youth development practitioners.The NYDA has consistently implemented job-preparedness workshops for young people. to be credited towards a youth-work qualification. who obtained unit-standard credits towards the youth work qualification 2011/2012 Target 12 interventions 200 staff Two unit standards aligned 10 Practitioners Q1 7 146 1 Q2 2 88 0 Q3 3 87 0 Q4 7 58 1 Annual Performance 2011/2012 19 interventions 379 staff Two unit standards aligned 0 0 0 17 17 practitioners The NYP 2009–2014 requires the country to build capacity and a skills set of youth workers. To this end. including information and career guidance services. This KPA’s objectives are to provide career guidance services. facilitate youth development work as a recognised profession. knowing where they can go to access services that can improve their livelihood.

include the development of a framework for fundraising and management of the fund. the NYF was able to raise funding worth R71. came from the private sector. There were 104 486 young people who visited our branches and local youth offices. 61 new access points were established for service delivery across the country. Expansion of these centres and platforms can make a significant impact on youth accessing relevant information and advice about their future. the agency established a mechanism to enable the NYDA to raise funds for purposes of advancing and implementing programmes. as defined in Section 1 of the Public Finance Management Act.During the year under review. National Youth Fund The NYDA Act. Section 5 (1) (vi) requires the agency to establish competencies and capabilities in its operations. more than half. Governance Section 2 of the NYDA Act defines the agency as a national public entity. the NYDA brands its offices. The achievement against these targets proves that the NYDA communications and information provision platforms are exceptional. in order to provide administrative and operational support to service delivery. Some 124 bursaries and scholarships were issued to young people from the fund and R802 258 was spent on youth-initiated projects across the country. Policies and procedures for operating the fund were also developed and approved by the NYDA board. Of all the NYDA access points and offices. Table 10: Established Access Points for NYDA for 2011/12 Key Performance Indicator A number of new NYDA local youthinformation dissemination and access points A number of NYDA provincial offices established 95% of NYDA offices and access points branded Three provincial offices 95% of existing NYDA offices branded 41% of offices 0 NYDA offices 0 NYDA offices 0 NYDA offices 45 access points 2011/2012 Target Q1 1 access points 1 provincial office Q2 8 access points 0 provincial offices Q3 18 access points 1 provincial office Q4 34 access points 1 provincial office Annual Performance 2011/2012 61 access points Three NYDA provincial offices established 41% of existing NYDA offices are branded The NYDA has the responsibility of establishing a footprint throughout the country. the NYDA managed to interact with huge numbers of young people. Of the total funding raised for the fund. R46 722 300. to implement a National Youth Fund (NYF). while 556 918 attended group career guidance sessions. The mechanisms established by the NYDA to establish the fund. In the year under review. and provide information to a significant population of young people. In response to this legislative mandate. These instruments are used by the NYDA to access and distribute funding to youth development projects and young people supported by the fund. The aim of this KPA is to ensure that NYDA operations comply with applicable legislation and regulations governing a Schedule 3A institution. The framework was presented to the NYDA Board and approved as an institutional framework for managing the NYF. provided by our mobile units visiting communities and schools. To improve visibility and for purposes of easy identification by young people who require services from the outlets. while 543 890 were reached by our mobile units visiting communities across the country. aimed at improving the livelihood of the youth. Some 46 225 young people were provided information and assistance through the NYDA call centre.5 million from its partnerships with the public and private sectors. while about 437 452 visited our website during the year under review. to further their studies in tertiary institutions Value of funds raised from the private sector for the NYF Value of funds raised through partnerships for the NYF Value of funds invested in youth-initiated projects R30 000 000 R60 000 000 R20 000 000 R0 R15 250 000 R0 R579 000 R579 000 R0 R0 R1 072 900 R0 10 bursaries 0 bursaries 0 bursaries 0 bursaries 2011/2012 Target Q1 Q2 Q3 Q4 124 bursaries and scholarships R46 143 300 R54 693 300 R802 158 Annual Performance 2011/2012 124 bursaries and scholarships R46 722 300 R71 595 200 R802 158 During the year under review. In addition. the NYDA established three provincial offices. and international organisations. Table 11: Funds Raised for the NYF Key Performance Indicator A number of bursaries awarded to youth by the NYDA. 41% were branded in accordance with the NYDA corporate branding requirements during the year under review. seeking information and assistance from the NYDA. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 36 . There were 7 125 young people who attended one-onone sessions on career guidance throughout the branches. 2008 (Act 54 of 2008).

The performance information figures indicate that the reduction in defaulters on SME loans was 17%. the publication of the Context of Youth in South Africa. Conclusion The NYDA performance information reflects that the agency is improving its operations. It is. since the clientele does not have surety and the majority are start-up businesses. including the monitoring and evaluation guidelines. operations and response towards challenges faced by the youth of South Africa. The drafting of the IYDS and plan. processes and procedures for managing performance information. The agency’s target was a 20% reduction in defaulters for microloans and SME loans. thereby working towards meeting the general mandate of the agency. the NYDA was audited by the Auditor-General for 2010/11. and the compilation of the Status of Youth Report for the Presidency are some of the key milestones the agency has achieved. during the year under review. which is 3% short of the set target. They will inform policy. Due to the development of frameworks. the production and publication of the NYDA priorities of the country. The NYDA issues loans to young people. As a young institution. During the year under review. while there was a 3. as their business may not generate profit quickly enough to enable them to repay their loan on time. financial and operational controls Decrease in the number of loans defaulting in the NYDA SME-loan book Decrease in number of loans defaulting in the NYDA microloan book 2011/2012 Target Unqualified annual audit report 20% decrease in defaulters 20% decrease in defaulters Q1 Audit opinion not issued yet 1% decrease in defaulters Q2 Unqualified annual audit report 2010/11 3% decrease in defaulters Q3 Target met in Q2 5% decrease in defaulters Q4 Target met in Q2 Cumulative Total Unqualified annual audit report 2010/11 17% decrease in defaulters 3. the agency can grow and improve further in meeting the needs of the majority of young people of South Africa. both in terms of co-operation with other institutions and financial resources allocated by the state. due to the fact that most young people who come to the NYDA. These documents are key in driving the youth development agenda in the country. Given time and support. to 85% in 2010/11 and.Table 12: NYDA Performance against Governance Indicators Key Performance Indicator Adequate corporate governance. the quality of information collected and reported by the agency has improved. therefore. expected that most of the defaulters on the NYDA loan programme will be on microloans. The audit opinion issued to the agency was unqualified. which are a high risk. the agency achieved 90%. Over the past three financial years of its existence. the development and publication of the NYP guidelines. which aimed at an unqualified audit opinion for the year 2010/11. This indicates that the agency met its target. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 37 . request microloans to start a business. and meeting its targets and mandate. Over the three years.6% increase in defaulters on microloans. the NYDA managed to produce fundamental documents to harness youth development potential in the country. the agency has introduced new programmes and initiatives that seek to support the development of young people. as stipulated by legislation. This makes them a high risk.6% increase in defaulters 17% decrease in defaulters 3. the agency is still in its growth curve.6% increase in defaulters During the year under review. the achievements against its targets have grown from 25% against all set targets in 2009/10.

BENEFICIARY STORIES AND ARTICLES .

With the business loan that Nqobile acquired from the NYDA.’ he concluded. the Jet Community Regional and National Award in 2009. ‘I started the business with the seed capital that I made by selling cakes. when the business was established. ‘The African continent has an abundance of natural resources which have for so long supplied the needs of the worldwide jewellery market. and the SAB Kick Start Award in 2012.The NYDA supports Soweto’s first black-owned jewellery manufacturing business By Refilwe Mphane Nqobile Nkosi is the proud owner of NQ Jewellery Design Services. NATIONAL YOUTH DEVELOPMENT AGENCY NATIONAL YOUTH DEVELOPMENT AGENCY 39 ANNUAL REPORT 2011/2012 ANNUAL REPORT 2011/2012 39 . so that we can alleviate South Africa’s high unemployment levels. According to Nqobile. and managed to purchase additional equipment and material. ‘Our collection will be sold in South Africa and the UK.’ he said. Over the years. However. Our aim is to take advantage of these resources by training and employing South Africans from disadvantaged communities. we mainly repaired jewellery and only manufactured jewellery on a small scale. the business has received numerous accolades. such as the Gauteng Business Leader of the Year Award in 2008. The business uses precious stones as well as silver. the business employs four people. Nqobile and UK designer Paul Spurgeon launched the Cornerstone Jewellery brand at the United Kingdom (UK) Springfair Jewellery Show. ‘We also received immense assistance and donations from Paul Purgeon Designs and the British jewellery trade members. However. Nqobile’s journey in the jewellery manufacturing industry started in 2007. he had some working capital. where I had the opportunity to learn about all aspects of jewellery production. Today. While in the UK. biscuits and soft drinks on the streets of Soweto.’ he explained. after he attended an 18 months’ training course in jewellery manufacturing and design. gold. who also underwent training in its Soweto workshop. the Cornerstone Jewellery brand is doing extremely well in the UK market.’ Nqobile elaborated. At the beginning of 2012. the first black-owned jewellery manufacturing and retail business in Soweto. due to limited funds and equipment. platinum and diamonds to manufacture jewellery. in order to ensure growth in the South African market. I also went through a two-week internship programme. he is keen to partner with prime South African jewellery retailers.

but also through the allocation of 30% of their proceeds in a BNTY worker’s trust and 15% in a community trust. Lungisa said that South Africa had become a net importer of food that could often be produced on the abundant arable land that was available in the country. in order to contribute to the alleviation of poverty and job creation.Young emerging black farmers changing the lives of the Cookhouse community By Siyabonga Magadla scale farming company as its technical partner. and that current landowners did not fully utilise all the land that was available. The launch marked the first harvest of tomatoes since the beginning of planting in September 2011 on the 2 389-hectare farm. granting the two young farmers a loan to the value of R10 million to start farming and processing tomatoes. BNT Resources has since gone into partnership with a professional. The project began after the NYDA helped facilitate interaction between the two entrepreneurs and the Department of Rural Development and Land Reform three years ago. ‘When we started the business. of which 331 hectares are suitable for tomato farming. ‘The NYDA started facilitating the interaction between the two entrepreneurs. So. in 2009. in the Eastern Cape. Through the project. However. resulting in the department acquiring the farm and making it available to the owners of BNT Resources. where the project is being managed. BNT has since employed 175 people from the Cookhouse community as part of the growing project. which led to the department purchasing the farm from its initial owner. Motanyane and Mazwai have changed the lives of the community of Cookhouse. we realised there was an opportunity in the market. Then. to start their own small enterprises. they immediately started assisting us with funding applications and we ended up obtaining funding from the National Empowerment Fund. We couldn’t have done it without the NYDA’s assistance – they helped us foster what is now a very significant funder of our business and they are the reason we are here today. run by two emerging young black farmers: Phetheho Motanyane and Themba Mazwai. and subsequently leasing it to the two emerging farmers for a period of 10 years. largeNATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 40 . Later. The NYDA encourages young people. NYDA Executive Chairperson Andile Lungisa launched a tomato-growing and processing project. when Cape Concentrates built their factory in Coega. Cookhouse. as there are many crops to produce on land in the country. such as the NYDA. the National Empowerment Fund came on board. Emvest Eastern Cape. in order to take advantage of business opportunities available through government. particularly in rural areas. and the Department of Rural Development and Land Reform.5 million. ‘I firmly believe that investing money in farming will take South Africa to much greater heights. This trust is held by the Blue Crane Development Agency.’ said Motanyane. when we approached the NYDA in 2009. we realised that they didn’t have the capacity to fund the tomato project. but didn’t have a tomato supplier. an Eastern Cape-based company that focuses on the processing of tomato paste. as part of its rural development focus. our research process on tomato-growing started. not only through the creation of employment.’ explained Lungisa. including co-operatives. which runs Maths and Science classes in the Cacadu District as part of its vision for growing educational opportunities in the rural Karoo towns. at a cost of R17. and Cape Concentrates. The launch took place at Kruger’s Post farm. owners of BNT Resources.’ said Lungisa. and youth-development and funding institutions.

Jack would like to expand his business. which often causes delays in finishing work. because nothing comes easy in life and you need to work hard to become a success. ‘The business has grown a lot and most projects that we receive are from the community. The NYDA assisted me to draft a business plan and I’m very thankful to the organisation. NATIONAL YOUTH DEVELOPMENT AGENCY NATIONAL YOUTH DEVELOPMENT AGENCY 41 ANNUAL REPORT 2011/2012 ANNUAL REPORT 2011/2012 41 . He was inspired to start his own business while working for his uncle‘s welding business. a small township in East London. He has been running the business for 14 years. After years of running his own business. Instead. Kukhanya Welding Work. it’s important to be patient and stay focused. Jack was raised by both parents and has five siblings. ‘My uncle encouraged me to start my own business and I took his advice. burglar doors and fences.’ he said. which now employs two people. Jack Mziwamadoda (32) is a young entrepreneur. because I wanted to develop myself and assist in reducing the number of unemployed people in my community. because starting a business and drawing customers isn’t easy. we’re determined to overcome these problems. to ensure survival and success.’ he said.’ In terms of the challenges that they face. he said proudly. He went to Dilizalta Senior Secondary School and dropped out in Grade 11. he emphasises that. ‘However. work more with aluminium and secure government projects.Aspiring entrepreneur paving his way up By Kamogelo Maja Born and bred in Mdantsane. Jack explained that the space they are working in is not large enough and that their van is not in a good condition. In conclusion. who designs and makes sliding gates. The NYDA helped him with his business plan. They named the business. ‘Starting your own business is not easy.’ he added. he met up with a friend and they decided to become partners. Asked about his achievements. this doesn’t discourage us.

‘The key priority for this particular project is for young women in schools to have the necessary knowledge. Aimed at rural and peri-urban-based young women. 16 Days of Activism Against Women and Child Abuse. World Aids Day. facilities and environment to manage menstruation hygienically. International Day for People Living with Disabilities and the Sanitary Towel Distribution Project. NYDA Board member.’ said Innocentia Motau. According to research. leadership and engagement. It is about making a significant life-changing difference. In some instances. KwaZulu-Natal. and with dignity. and health education and awareness. This can amount to about 24 weeks out of 144 weeks during a four-year period of high school. The sanitary towels do not only enable girls to attend class regularly. because of having no choice but to use old newspapers or cloths. but the effect is greater. This project will assist in ensuring that girl learners do not miss valuable learning time. Young women in Africa have been reported being absent from school for a period of at least four days per month. on the outskirts of KwaMashu. The NYDA already has a key focus on youth development in the areas of education and life skills. in the sense that this falls within the government’s goal of making access to education simpler and eventually ensuring better economic exposure for these young women. Projects that fall under Sistaz4Life include: breast cancer awareness. lack of access to sanitary towels often results in young women from poorer backgrounds being absent from school or experiencing loss of human dignity.’ Motau concluded. education and gender equality. due to fear of staining their clothes. The NYDA partnered with the Imbali Sanitary Towels Pads Project for the launch event. ‘The Sistaz4Life Project is not just about supplying sanitary towels to young women. the NYDA and partners aim to achieve the development of young women in the areas of health. the Sanitary Towel Distribution Project was launched at Mandlakazulu Senior Primary School in Lindelani. 42 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . economic participation and employability. these young women suffer from stress and depression.The NYDA helps young girls stay in school By Refilwe Mphane The NYDA recently launched an exciting initiative called Sistaz4Life – a campaign that will be focused on targeting key social issues facing young women today. Through the Sanitary Towel Distribution Project .

as well as sharing best practices on entrepreneurship. the NYDA had since its inception provided entrepreneurship training to 49 341 young people. and co-operatives in KwaZulu-Natal. leading microfinance expert and Nobel Peace Prize winner. • • • the G20 Young Entrepreneurs Alliance believes that we can move towards a world where young entrepreneurs contribute to their countries’ economies and become pillars of their communities: • Governments supporting alternative mechanisms and institutions that provide young entrepreneurs with capital Governments encouraging greater collaboration and co-operation among public. as part of responding to some of these recommendation. She added that the NYDA already had programmes and services in place that supported aspiring and established entrepreneurs. will also address the summit. ‘However. ‘Entrepreneurship is the cornerstone for building flourishing 21st century economies and young entrepreneurs should play an enormous role in this process. ‘We also cannot underestimate the importance of collaboration and cooperation among public. 2009 Female Farmer of the Year. we will continue to support them through our various programmes. who recently won the NYDA-sponsored Future 100 competition. taking place in Nice. Non-Executive Board Member representing business at the NYDA and member of the G20 Young Entrepreneurs Alliance. Innocentia reported that. the ecosystem for healthy entrepreneurial vitality. such as business loans. Representatives from the Gauteng Chamber of Commerce and a number of young entrepreneurs will also attend the session. This year. Vice-Chairman and Managing Director. to make it easier for micro-entrepreneurs who would not ordinarily be able to access capital. aimed at unearthing and recognising promising entrepreneurs in South Africa. Mahindra & Mahindra. to access collateral free business loans of between R1 000 and R10 000. and Onesimo Ngumbela. will once again join world leaders in the entrepreneurship arena for the G20 Young Entrepreneurs Summit. The summit allows for extensive country-to-country benchmarking. France. With this methodology.’ Innocentia added that. micro and medium enterprises. the following framework was outlined of how G20 YES would engage the G20 process to include entrepreneurship in its ongoing agenda. loan repayments have also generally been high. on 2 November. and best practice for financing projects. or not to consider its recommendations. who have a minimum of five and a maximum of eight group members. to build the entrepreneurial culture among young people and boost the sustainability of youth-owned enterprises. with the apt theme. It is an opportunity for entrepreneurs and emblematic business leaders from top global companies to network and exchange ideas on entrepreneurship as a key component for sustainable economic growth. the social entrepreneurship revolution. • Bongiwe Kali. As the NYDA. ‘The G20 Entrepreneurship Barometer: New Criteria for Measuring Resources and Means Developed by G20 Countries to Encourage Entrepreneurial Mindset’. Through these recommendations. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 43 . Ernst & Young. will join Innocentia. aspiring and established small.’ said Innocentia. ‘In a country where young people account for the largest cohort of the unemployed population. ‘Why do emerging and developed economies struggle so much to integrate youth in the economy?’ and ‘Is entrepreneurship something you can teach?’ and Jean-Pierre Letartre. we should always take up opportunities to improve on our offerings. France & Luxembourg.South African entrepreneurs to share knowledge at the G20 Young Entrepreneurs Summit in France By Gugu Mjadu At last year’s summit. because the group members are jointly liable for loan repayments. President. ‘A New Generation Of Entrepreneurs: Builders Of The 21st Century Economy’. because of restrictive banking regulations. This lending programme enables young people between the ages of 18 and 35. who will address the summit on. colleges and universities. the mentorship programme and the business consultancy-services voucher programme. held in South Korea. Jaume Tapiès and Professor Muhammad Yunus. Innocentia Motau. International President of Relais & Chateaux. private and non-profit organisations. The summit will address the following topics: the context of entrepreneurship today.’ Innocentia concluded. private and non-profit organisations that offer business support services Governments playing a role in encouraging an entrepreneurship culture by communicating self-employment as a possible career option Governments reducing administrative burdens for recently established youth-owned businesses and enacting tax measures that will encourage their growth Governments encouraging entrepreneurial education in schools. the NYDA signed a memorandum of understanding with Ithala to provide loans of between R50 000 and R5 million to youth-owned.’ she said. This third edition of the summit. will bring together world-class entrepreneurs to share their key strategies for adapting and innovating products. we would be ignorant not to take the G20 Young Entrepreneurs Summit (YES) seriously. Confirmed speakers include: Anand Mahindra. the NYDA introduced the Group Methodology Lending Programme. services and business models. who will lead the roundtable discussion on.

a jewellery design co-operative. Pillay also referred to the Mtubatuba Poultry Co-operative project. decided to work together and form a cooperative enterprise. facilitated by the NYDA. in partnership with Ithala Development Finance Corporation. and a means to a better life.’ he said after being awarded the prize. a cash prize of R20 000. poverty alleviation and social integration. Mr Yershen Pillay. ‘Youth. including co-operatives. I thank the NYDA for 44 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 this initiative. . ‘It was my birthday yesterday and I could not have asked for a better gift. Founding member of Dipeung Trading Co-operative. the NYDA Deputy Executive Chairperson. which is necessary for the sustainability of their cooperative. Tshwane. I have never seen any other designers make use of dried lemons and guava seeds to make jewellery and accessories. ‘To achieve the fundamental transformation of our economy.Co-operatives. made an impression on the NYDA-appointed judges. which will mainly focus on cooperatives in KwaZulu-Natal. the South African National Apex Co-operative and the Eastern Cape Provincial Government. in celebration of International Co-operatives Day. Dipeung Trading Co-operative. One particular vehicle is that of co-operative enterprise. in order to supply more shops and possibly export their merchandise. Dipeung Trading Co-operative was founded in 2009. based on their overall presentation and the fact that six out of seven of their members are young people under the age of 35. Pillay addressed crowds at the Jan Smuts Stadium and said.’ says Pillay. 31. we need the requisite vehicles. the Future of Co-operative Enterprise. where the NYDA held a competition for the best co-operative exhibitor present. which has churned out pioneering knowledge and information about poultry co-operatives. ‘We have an advantage over other jewellery crafters in that we use only natural materials. The top five runners-up were awarded business consultancy-services vouchers. This took place at an exhibition held at East London’s Jan Smuts Stadium. The celebrations included an exhibition of existing co-operatives and a gala dinner on 1 July. business process re-engineering or financial management. Bolepu Mathabatha.’ ‘Co-operative enterprise must be seen as an alternative and attractive form of enterprise for young people. was presented with a cheque by Pillay and congratulated on stage by the Minister of Trade and Industry. Since its inception. when a group of artists.’ says Mathabatha. Mathabatha was overjoyed at his unexpected success. For example. The NYDA also recently launched the Imbewu Loan Fund. It must be seen as a means of job creation. arranged by the NYDA. According to Mathabatha. all dealing with natural materials such as leather and indigenous seeds. alternative enterprise model for youth By Nawhal Kara-Foster As the world celebrated International Co-operatives Day on 2 July. which allowed them to select a service. awarded Dipeung Trading Co-operative from Atteridgeville. Mr Rob Davies. the NYDA has approved R66 7 million worth of loans to young entrepreneurs. Under the worldwide theme. such as the development of a marketing plan. He said that the NYDA cash prize of R20 000 would be used for marketing their products.’ the NYDA’s aim was to raise awareness of co-operatives as an alternative form of enterprise model for youth. in partnership with the Department of Trade and Industry. and will continue to support co-operatives through financial and non-financial support.

Hard work. when she became the overall winner of the FUTURE100 entrepreneurship competition. and the overall winner received the Chief Executive Officer Award. The top 100 winners from various provinces received award certificates confirming their achievement as the FUTURE100. selects and awards the top 100 young entrepreneurs in the country. and Sowetan and Sunday World.’ said Maleke. was launched in August 2011 for continuous interaction with the winners. The interaction coincided with the government’s declaration of 2011 as the year of job creation and was undertaken as part of the Youth Month activities. According to Thapelo Maleke. As the saying goes. made the final judgment. held at Gallagher Convention Centre. as well as Rock Solid Properties. ‘What you put in. which currently has 144 access points across the country. It’s a new way of celebrating Youth Month every year. on 24 June. and raised poverty and unemployment as the biggest challenges they were facing. Motlanthe. and creating jobs. The stories of the FUTURE100 winners and businesses will be profiled in a special supplement in the Sowetan and Sunday World. the judges announced the 100 winners during a gala dinner.’ Onesimo Ngumbela is testimony to this. acknowledge and promote promising young entrepreneurs in South Africa through a process that identifies. a Gauteng-based travel agency. to sustain their livelihood and as a way to tackle the challenge of youth unemployment in South Africa. These young entrepreneurs will inspire other young people to start their own businesses and contribute positively to the growth of our economy. Gold. ‘Youth Action for Economic Freedom in Our lifetime. hosted under the theme. which challenges young entrepreneurs to run their businesses in a manner that ensures that we raise the standard and quality of service delivered by young entrepreneurs. particularly to higher learning institutions. Programme Director for FUTURE100. They said poverty in the province had also resulted in young women resorting to prostitution. a property company. Various stakeholders in the Eastern Cape were also given an opportunity to present their plans for job creation and skills development initiatives in the province. Ngumbela was named Top Young Entrepreneur of South Africa. She was also one of the Platinum Award winners. and youth development and economic development initiatives. joined by NYDA Chief Executive Officer Steven Ngubeni and Eastern Cape PAB Chairperson Ayanda Matiti. With these awards. skills. Young people also complained of a lack of access to education. will use suggestions from the interaction to work out proposals to help alleviate poverty and youth unemployment. After much deliberation. More than 300 young people attended the dialogue. making her the overall winner of the FUTURE100 competition.Eastern Cape youth propose youth Young woman named top development solutions to Deputy young SA entrepreneur President By Siyabonga Magadla By Linda Mbongwa A recent visit to the Eastern Cape by Deputy President Kgalema Motlanthe gave youth of the mostly rural province an opportunity to interact directly with their representatives in the high echelons of government. The Deputy President committed government to taking forward the issues raised by young people and to having follow-ups through the NYDA and the Eastern Cape provincial government. proposing that skills development programmes should be implemented urgently to help absorb young people into the labour market. It serves as an entrepreneurial talent search. young people expressed a strong interest in actively participating in the Integrated Development Plans of municipalities. a suggestion that is in line with the NYDA’s strategy to open local youth offices in all 283 municipalities. At municipal level. Ngumbela. young people across the country deliberated on issues of job creation. who owns Travel Stop. The competition is run by the NYDA. During the interaction. The public nominated thousands of young entrepreneurs such as Ngumbela to take part in the competition. the NYDA and SAYCC identified the need to launch a programme to encourage young entrepreneurs to engage in entrepreneurial activities. The nominations went through a series of internal adjudication sessions before an independent panel of judges. The NYDA. calling on government to ensure that more young people have access to financial aid. patience and dedication are often considered as some of the main ingredients for a successful business. is what you get out. aimed at providing young people with an opportunity to raise issues affecting them. the NYDA updated young people on the progress government was making in implementing and mainstreaming youth development. Engineering and Related Services SETA (MERSETA) and the Eastern Cape Province regarding job creation initiatives to benefit the youth in the province. ‘FUTURE100 awards will be held annually. Similar interactions will be arranged with youth in all provinces. featuring all the winners and their businesses. received the Chief Executive Officer Award of R100 000. Other issues that young people raised included the establishment and strengthening of cooperatives as a viable form of business enterprise. which pave the way for development plans at local government level. identified by the NYDA and SAYCC. The interaction concluded with the signing of a Memorandum of Understanding between the Manufacturing.’ During the month. This will ensure that young people influence the type of youth-development programmes that municipalities develop and implement. The FUTURE100 website. Categories included Platinum. based in the Western Cape. interacted with young people in the Eastern Cape as part of constructive social dialogue. Silver and Bronze. They identified funding as the main challenge preventing most young people from furthering their studies. In June. we are creating new rolemodels in different communities across our nine provinces. This inspirational programme seeks to recognise. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 45 . There was also a suggestion that municipalities consider employing young people in their Special Programmes Units and that the NYDA provide more access points for young people in remote areas. in partnership with the South African Youth Chamber of Commerce (SAYCC).

The NYDA’s support for this initiative is in line with its mandate of embarking and the 2011 Youth Month theme. community development. The capacity created through the CEDOs is expected to add value to current efforts by local government to stimulate local economic development. Hip Hop enthusiasts also enjoyed a full-on hip-hop T’bo Touch. among others. such as Rocco and Franck Roger (both from France). which revealed slow utilisation of enterprise finance by small. Greg ‘The Maestro’ Maloka. to enable them to effectively process loan transactions. as well as information brochures addressing. Robert Walker (USA) and South Africa’s Culoe Christos. The well-respected DJU crew of DJs. and increasing the number of youth and women accessing enterprise finance. marketing and branding. Vinny. with accessing further studies in related business fields. where they are targeting more than 120 young people to undergo entrepreneurship-development training. studio equipment and technology. for them to acquire accredited skills in Microfinance at NQF level 4.’ Speaking at the opening of the conference. to bridge this gap. Steven Ngubeni. in order to empower the many young people who have talent and passion for music. At the end of the project. commercial banks and provincial development finance institutions. in partnership with the Department of Trade and Industry (DTI). NYDA Chief Executive Officer. topics: engineering and mastering. Professor. including travelling to nearby identified sites for training. Beyond enhancing the NYDA’s value-addition to enterprise development. the NYDA subsidised the registration fee for the conference at R150 per delegate. therefore. Ralf Gum (Germany). towards improving youth access to enterprise finance. Discussions with the DTI also confirmed these findings. micro and medium enterprises. noteworthy music practitioners also joined them. to make the event more accessible. In addition. participants will also be confident in matters related to accounting. who will be able to originate financial quality deals. young people only paid R350. indicated that the NYDA believed that. NATIONAL YOUTH DEVELOPMENT AGENCY NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 ANNUAL REPORT 2011/2012 46 46 . which was. who may want to pursue self-employment. the University of Pretoria will offer training to participants. instead of the normal R500 charge. The project is in line with the NYDA’s mandate of facilitating youth access to business funding. Slikour. legal contracts. The training will contribute to the improvement of enterprise development and act as a feeder of trained staff to the microfinancing sector. life-skills. namely. such as Amu. to enable them to provide business-development service assistance to budding entrepreneurs. is currently managing a NYS project in Witbank. more than 500 young people gathered at Southern African Music Conference (SAMC). marketing and the co-operative business concept. The participants will also undergo life-skills training. and manage loan administration and collection. The NYDA partnered with DJs United (DJU) for this initiative. The registration fee covered access to conference facilities and more than 20 workshops. The project is intended to create a pool of qualified Community Enterprise Development Officers (CEDOs) in both rural and urban areas. and entrepreneurship The event featured acclaimed names with a wealth of knowledge to share. a boost for enterprise development By Siyabonga Magadla The NYDA. the project will also boost existing entrepreneurship-awareness campaigns. and local superstars included Winnie Khumalo. participants will be offered the opportunity to perform community service at district municipalities. the following media. Teargas and Da Les. and business development services. The participants were selected on the basis of the following selection criteria: The NYDA empowers youth with a passion for music By Refilwe Mphane From 28 June to 2 July 2011. HHP. so that. The project will also look into assisting participants. Tumelo and Zakes Bantwini. • • • Must be a young person between the ages of 18 and 35 Should have passed Mathematics Higher Grade and should have at least a C-pass mark (Higher Grade) in both Mathematics and English Should commit to 100% participation in all training programmes. One obvious obstacle identified was the misalignment between deal origination and clients looking to secure enterprise finance. This project is. As part of the project. aimed at promoting financial literacy and general public awareness of entrepreneurship. training and mentorship sessions run by the NYDA. intended to create capacity resident within partner agencies. de Song and Black Coffee. At the end of the training. Oskido and many more Featured international vocalists were Monique Bingham and Robert Walker. The project idea originated from the NYDA’s experience. including computer literacy. in an effort to draw more young people to participate in the country’s mainstream economy. Monique Bingham (Belgium). Fresh.Witbank NYS project. dissection by leaders in the South African hip-hop industry. by offering business skills and Moses Mabhida Stadium’s Conference Centre in Durban for the 7th Annual information on how to access funding. ‘Youth Action for Economic on initiatives that seek to advance the economic development of young people Freedom in Our Lifetime.

rural enterprises. these businesses would require funding more direct and sustainable jobs for the youth. a founding member of the Lesedi Manufacturing Primary Co-operative.’ Yershen Pillay said at the launch event. The NYDA is committed to supporting green co-operative enterprises in South Africa. It’s anticipated that the cooperatives will allow for positive community participation. the NYDA tailormaking a business plan for music practitioners. ‘We have also consciously chosen to refocus the NYDA’s funding base to contribution by co-operative enterprises to poverty reduction. and illustrating the advantages of people coming together to produce goods or services. The NYDA firmly believes that the International Year of Co-operatives will enable youth in many communities to benefit from employment opportunities. song writers. shisa-nyamas. which will serve as possible solutions to social ills such as crime.’ said Zoleka Ntshololo. DJs or record label owners and make a dent in the high unemployment levels among young people. The NYDA launches a green cooperative in Alexandra Township retaining valuable.with the knowledge and skills gained at the conference. skills transfer and educational opportunities. We have the support of the community. purchasing equipment and as working capital. ‘We were motivated to recycle. but also have a significant focus on ‘greening’ communities. Mr Yershen Pillay. because we are women known to be doing great things in Alexandra.’ says Ngubeni. The IYC will also highlight the strengths of the co-operative business model as an alternative means of doing business and furthering socio-economic development. locally developed skills. music producers/DJs. hair salons. or buying stock in bulk as a group. Members of the Lesedi Manufacturing Primary Co-operative recycle cans. particularly in small communities. glass and plastic collected within the community. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 By Nawhal Kara-Foster and Palesa Madumo The United Nations has declared 2012 the International Year of Cooperatives (IYC). launched an awareness drive to encourage unemployed and disheartened youth to start co-operatives enterprises that will not only create employment. The co-operative used the funding for the construction of offices. and The increasing numbers of young people seeking assistance in the music industry and the NYDA’s aim to penetrate this market also resulted in the conference. In the main. which has enabled them to turn a community litter and pollution problem into a viable business solution.’ concludes Ngubeni. in order to raise public awareness of the invaluable 47 . During Durban and the DJU crew agreed to act as mentors to the first 20 piloted ‘We want to develop these young people into economically active and business-savvy music producers. ‘Co-operatives serve to uplift local communities in sustaining job creation. drug and alcohol abuse. and supporting family and social structures. The NYDA is urging young people to start critically identifying requirements within their communities and fostering partnerships that could be the beginning of successful community co-operative enterprises. more than 200 delegates visited the NYDA offices in beneficiaries of NYDA business-support services. The Lesedi Manufacturing Primary Co-operative is a 13-member waste management co-operative that has been operating since 2008 and received more than R1 million through the NYDA Economic Development Cluster for the duration of 36 months. young people could indeed acquire economic freedom in their lifetime. paper. The Deputy Executive Chairperson of the NYDA. such as and mobile bakeries. shoemakers. carwashes of about R 50 000 each. The NYDA celebrated 2012 as the International Year of Co-operatives by educating the youth on the ease of forming and registering co-operatives. cardboard. Unskilled South Africans are among those set to benefit from cooperatives. employment generation and social integration. This will help us to create more entrepreneurs. as well as loans for micro and small businesses. because anybody who has ever been to Alexandra knows that our community is very dirty.

such as family-planning advice. In colloquial language. which is mainly responsible for the socialisation of citizens.3%.’ ‘throw it down’ and ‘ulahlile’ are prevalent. tension exists between various legal prescripts in the country. The sales language of any new product is how ‘sexy’ it is. 1996 (Act 92 of 1996) allows for adolescents as young as 12 years to choose and access an abortion. through television shows. by deduction.Do adolescents have the right to have sex? In the implementation of the Constitution Act. While this is a normal process. The laws about who may and may not have sex in South Africa should be as unambiguous as the alcohol and tobacco laws. This would clearly place a burden on the health system. This situation has led to the sexual debut age of adolescents dropping to as low as 14 years nationally. sexual awareness is often characterised by experimentation. 2007 (Act 32 of 2007) prescribes the age of consent as 16 years. According to the Sexual Offences Act. that everyone will want to acquire the product or service advertised. The MRC’s Youth Risk Behaviours survey showed that 37. the South African Constitution provides for women’s reproductive rights. with significantly more males (45. message and teaching. including HIV. On the one hand. the International Conference on Population and Development (Cairo 1994. primarily because of the responsibilities involved with engaging in it. departing from the premise that everyone wants to engage in sex and.2%). considered to be older than 16 years.2%) than females (30. Where an adult person. there exists the normative rule that sex is an adult activity. services and brands. among those who have ever engaged in sex. it makes it a criminal act and offence for a person to engage in sex with a minor. therefore. therefore. Therefore. In this setting. they are seen to have committed an act of statutory rape. The worrying factor here is that. By Amuzweni Lerato Ngoma South Africa ratified a number of declarations that uphold the promotion of Sexual and Reproductive Health and Rights. provides for another parallel. Therefore. and represent what adolescents use and respond to. At the same time. unplanned pregnancy and sexually transmitted infections. but has repercussions. and the Beijing Platform for Action. access to contraceptives and choice regarding termination of pregnancy. sex is used to sell products. Furthermore. 1996 (Act 108 of 1996). engages in a sexual act with a minor. adolescents may be said not to have the right to engage in sex. we see a situation in which selling sex is becoming the norm in society. without the consent of a parent or caregiver. where 14% of adolescents have had sex. 48 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . However. in general. Empirical evidence suggests that this process is normal. ICPD+10). The Medical Research Council (MRC) Youth Risk Behaviours survey states that heightened sexual awareness is part of adolescent development. Women have the right to make choices on reproductive matters. the Choice on Termination of Pregnancy Act. This messaging is typical of what is taught to children and adolescents. in some cases leading to pregnancy. The prevalent discourse on sex is that it requires mental and physical maturity. terms such as ‘give it up. In this setting. society. with no significant variation by gender.5% of adolescents had engaged in sex. Some 70% of adolescents having sex were not using a condom when engaging in sexual acts. For example. In a consumerist society. the national prevalence for having had one or more sexual partners in the past three months was 52. consistent messaging constructs sex as a cool thing and a triumph. the Criminal Law (Sexual Offences and Related Matters) Amendment Act. The MRC survey stated that adolescents were engaging in unsafe sexual practices. and probably more ubiquitous. The prevailing social environment provides for contradictory messages and teachings on whether adolescents have the right to have sex. such as CEDAW. the act criminalises an act of sex for people aged lower than 16 years. Perhaps the emphasis of these programmes should simply be on abstinence. which has the potential of placing adolescents at risk of unprotected sexual activity. Reproductive health and peer-education programmes focus on access and activities.

from Du Noon. as our family would not have this stipend anymore. I am also passionate about rugby and would like to find a French club that I could play for during my stay in Burgundy.’ she said.’ Pillay explained that youth engagement in a community might not only be beneficial for the future of an individual. but I think she now understands how much I can gain from this opportunity. The programme is aimed at youth already involved in community service. Philippi. Rugby player.’ said Dalisile. where they did youth-related volunteer work for six months. and mature and develop as their concept of the world expands. Posiswa Makele. since then. 23. Msindo. I am extremely grateful. instead. 18. who is a farmworker. Not that I didn’t have a good home. South Africa’s largest national HIV-prevention initiative for young people. young people learn firsthand about various aspects of life in another country. ‘My father passed away in December last year and. 22. is hoping to impress French NGOs with his commitment and passion for service. given the opportunity to become a South African politician. and loveLife.’ Centane said. I don’t think I will even take her to the airport. The exchange group also underwent French language instruction. is travelling overseas for the first time and wants to inspire other young people in his community to become involved in community service. ‘The most exciting thing for me about being selected to participate in the French Exchange Programme is the opportunity to visit another country and to travel in an aeroplane.’ Viloshnee van Wyk. The 10 young people selected were: Nokonwaba Dalisile. who lives with her mother. said about the programme. except that I will be going to France next year. Damons said.’ said van Wyk. as not many people from our background ever have an opportunity like this. ‘I am definitely eager to experience French culture. ‘My parents are so proud of me that they have been bragging to the rest of the community about me going to France and all that I will learn there.’ said Makele.’ he said. Yonelani Msindo. as it will be my first time for both. Jerome Damons. She said that the furthest she had ever been from her family was to the West Coast in the Western Cape. ‘I am most excited about my trip to France. but I just want better things for her. 23. for skills development and to promote an increased sense of self-efficacy among young people. a seven-year-old and a one-year-old. is the mother of a twoyear-old boy. By Nawhal Kara-Foster Through a partnership between the NYDA.’ said Bezuidenhout. but also for community advancement. and his stepfather and older siblings. ‘My mother had to play both roles very strongly. from the township of Langa. from Kykoedie in Klipdale. from Khayelitsha. She hopes to bring new knowledge back to her community. from Langa. a French institution responsible for voluntary civic service. grew up without a father. drug and alcohol abuse. but she is also very excited. lives with her grandmother in Brown’s Farm. She is paranoid about my safety abroad and keeps reminding me of the dangers of human trafficking. who spends his time hosting peereducation. 21. ‘When I return from France and young people see me walking in the street. instead of complaining about unemployment. lives with his mother. who she will be leaving in the care of her mother — a part-time domestic worker. ten young people were selected to participate in the French Exchange Programme. and work-ethic and diplomacy training in Cape Town. When asked what he is most looking forward to. 22. Through youth exchange. which he says most children in his community do. they travelled to Burgundy. is the mother of two children. ‘I want to secure a solid upbringing and brighter future for my daughter. believes she could make a difference in the lives of many young people. tried to become a role-model to youth in her community. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 49 . whose father is a farmworker and his mother a housewife. my stipend from loveLife has been assisting my mother with household expenses. to learn about their culture and religion. from Prince Albert. they should say that this is the guy that went overseas and brought his knowledge and skills back to his community. to towns such as Langebaan. Initially. She said she joined the loveLife Groundbreakers Project to make a change and do something with her life. Nonkoliso Babaza. The NYDA Deputy Executive Chairperson. Henrico Bezuidenhout. Raising a son without a male role-model could not have been easy. Busisiwe Nontsikelelo Duna.The NYDA’s French Exchange Programme broadens horizons Amanda Centane. from Khayelitsha. ‘My mother is the most excited about me going to France.’ he said. Mr Yershen Pillay. described herself as a simple person and. ‘My life is quite routine — nothing exciting. said he was the first farmworker’s child from his community to ever travel overseas. both of whom she will be leaving in the care of her parents. my mother was not too happy about me going to France. although she was nervous. has lived in Worcester her whole life and said that she had always wanted to go to France.’ she said. ‘The aim of the French Exchange Programme is to encourage youth service in South Africa. learn new things. because she will just cry. whose mother is a domestic worker and single parent. 22. two siblings and three-year-old daughter. 22.’ said Abrahams. In January 2012. She said that she made a conscious effort not to become involved in these problems and. ‘My family couldn’t believe it was actually true that I was going to France. Paultin Abrahams. Service Civique. but that she was also very keen to learn. She described the challenges of gangsterism. 24. teenage-pregnancy and motivation workshops at high schools in his hometown. from Hermanus. and territorial wars that young people faced in her community. and bring knowledge and education back home. 21. Babaza said she would achieve this change through her firsthand knowledge about township life and by simply listening. Lunami.

Today. ‘After honing my skills in debt-collection strategies and financial management processes. and persevere when things become tough. take advantage of business-support services offered by organisations. Based in Bellville. who work in the call centre. There are many opportunities in the debt-collection space.’ he indicated. such as the NYDA. he worked as a debt collector and. Maurice acquired a website-development voucher and a marketing voucher from the NYDA. ‘It was challenging when I established the business. In 2011. however. process redesign and debtcollection strategies to public and private-sector companies. aspiring entrepreneurs. the business offers debt-collection solutions. I am. happy with the progress we have made so far and have more plans in the pipeline. until he became a business-solutions specialist. Maurice has a wealth of knowledge and experience on debt collection. ‘Even though a great deal has been done to support young. I feel that big business and government can do more to reduce the red tape. so that we can increase South Africa’s entrepreneurship activity. aspiring entrepreneurs is that they should plan. After studying a law degree. Maurice’s advice for young.’ he concluded. 50 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .Debt collection specialist takes a plunge into business By Refilwe Mphane Seasoned debt-collection specialist Maurice Kannemeyer established his debt-collection business in 2010. Maurice employs four trained staff members.’ he explained. over the years. Cape Town. I saw it as a huge opportunity to start my own business. This enabled him to market his newly established business. I plan to take advantage of them. moved up the ranks. so that I can create more jobs.

‘My dad built a garage in our backyard and that’s where I work from. With the help of the NYDA. Some of her plans include studying hair design and acquiring a business mentor. as she had to dismiss two employees. which she used to buy equipment and hair products. Montsheng could not pursue her goal to study haircare after Matric and worked instead as a cashier in various retail stores. but also because she wanted to meet a demand and generate repeat business by being professional. she ventured into the industry. this has not deterred her from her plans to grow the business. because they stole hair products.’ she indicated. honest. According to Montsheng.’ she explained. Montsheng decided to take the plunge and establish her own hair salon. ‘My cousin owned a hair salon. Montsheng works alone. she has developed a business plan that she will use to apply for additional funds for renovating her hair salon. so that she can improve her business management skills. The 25-year-old discovered her love for hairdressing while in primary school. Montsheng’s plans are already in motion. Due to financial constraints. effective and efficient. She approached the NYDA for a business loan and received R10 000.’ she said. ‘I styled people’s hair in my spare time. However. I would actually find people waiting for me after work.’ she explained.Hair salon owner sets her sights high By Refilwe Mphane Montsheng Sello is determined to grow her Khayelitsha-based hair salon. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 51 . not only because she was passionate about making people look beautiful. transparent. so I learned a great deal from her. ‘This will equip me with the necessary skills to expand my business into a unique and quality hair salon like those that you find in town.

I was not happy with my growth at the company where I worked and decided to rather start my own business on a full-time basis. His customers include government municipalities and homeowners. he found a job at a Durban-based air-conditioning company. because business has its ups and downs. Khulekeni’s advice to any aspiring entrepreneur is to be passionate about what they do.Air-conditioning company targets the black market By Refilwe Mphane Khulekeni Khanyile is the proud owner of a Pietermaritzburg-based airconditioning company. Then. ‘I studied refrigeration trade theory while working in Pietermaritzburg. ‘Firstly. ‘They should also not expect to become rich overnight. and fixed people’s fridges and air-conditioners in my spare time. On completion of his studies. My aim is to make them understand that air-conditioners can be affordable.’ he concluded. in mid-2011. in early 2011. However. but this became more challenging when the work diminished. I received a R370 000 business loan. He was then able to accelerate his plans of growing his business by targeting black homeowners. the NYDA assisted me with drafting a business plan. In the beginning. Khulekeni identified a gap in the market by targeting particularly black homeowners.’ said Khulekeni.’ he explained. To boost his business.’ he explained. ‘There is a misconception among blacks that air-conditioners are a luxury. 52 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . buy a bakkie and develop marketing material. which I used to import 88 air-conditioners from China. after which he moved to another air-conditioning company in Pietermaritzburg. he relied mainly on work from government municipalities. Khulekeni studied air-conditioning and refrigeration at a Further Education and Training College (FET). Khulekeni decided to approach the NYDA for a business loan.

but mostly for corporate workshops and training. make-up. the truck broke down and became too expensive to maintain. with weddings. in 2004. According to Keneilwe. We finally managed to sell and accepted the little money we could get. The business is doing very well. the Business Women’s Association and World Vision. On their return from England. Keneilwe’s future plans include establishing a beauty parlour. In 2006. things did not go according to plan. The 30-year-old transformed her negative experiences in business into valuable lessons. I want to make them understand the benefits of taking care of themselves. However. my friends and I decided that we would find work in England. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 53 . However.’ she explained. ‘We decided to part ways and sell the truck. Keneilwe successfully implemented the SASSA deal. ‘I employ two full-time employees and three on a part-time basis. waxing. which will offer a variety of health and beauty services such as reflexology. her first experience in business was when she and four friends established a trucking business. pedicures.’ she indicated.’ she concluded. Keneilwe registered her catering and events-management business. With the R50 000 business loan that she acquired from the NYDA. massages and other related services. advice on nutrition and so forth. We provide catering and event-management services for all sorts of events. such as greater productivity. After working on a number of projects. A recent business opportunity that she took advantage of was to install ultraviolet sanitising ceiling discs at the South African Social Security Agency’s (SASSA) nine offices.Keneilwe’s inspiring entrepreneurial spirit By Refilwe Mphane Keneilwe Mogapi’s enduring entrepreneurial spirit has played a key role in her success. but struggled to find a buyer. ‘For example.’ she explained. Their clientele includes various government departments. so that we could use the money to buy a truck. I worked for a leading cosmetics company as a beauty consultant. we often provide beauty treatments such as manicures.’ said Keneilwe. ‘After studying somatology. which come in handy when running her catering and events-management business. Keneilwe and her friends followed through with their plans and bought the truck. ‘Many people consider beauty and health treatments a luxury. She continues to use her somatology skills and passion for beauty in her current business.

’ she said. ‘I grew up in an environment where everyone wanted to be a doctor or a lawyer. ‘I needed additional machinery and fabric. when she moved to Durban.’ she said. ‘Those were some of the most difficult years of my life. such as the Durban July and weddings. so that I can establish stand-alone fashion outlets throughout the country. but I became exposed to other careers and discovered that I was good with my hands. Thandeka discovered her love for fashion design in high school. Thandeka had the opportunity to supply a fashion outlet in East London. Malesna Design. even while going through these challenging times.’ she concluded. so I approached banks for a loan. As one of the three top designers at the 2009 Eastern Cape Fashion Week. ‘I want to grow the Malesna brand. she was never tempted to look for a full-time job. Thandeka studied a diploma in Fashion Design and started working from her home in Pinetown.’ she explains. a group of 10 fashion designers who have a fashion outlet in Durban.Fashion designer’s passion and persistence pay off By Refilwe Mphane Entrepreneur Thandeka Myeza is making waves in Durban through her fashion label. and plan to open more outlets in KwaZulu-Natal and the rest of the country. Thandeka won the Citibank Overall Entrepreneur Award. I then approached the NYDA and they assisted me with a R50 000 business loan. Thandeka supplies another fashion outlet in Durban and is the Chairperson of KwaZulu-Natal Youth Designers. In 2010. but was rejected. ‘People wanted to know where I bought my clothes and word-of-mouth worked wonders. However. Today. because she believed that better days were on the horizon. 54 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .’ she explained. I didn’t have many clients and would go for months without an income. After Matric. She continues to dress ordinary women and high-profile personalities for various occasions. after being nominated by the NYDA. A change of fortune came in 2007.

such as strokes. I will be able to employ four more people. She is currently in the process of expanding her physiotherapy practice to include an integrated dialysis and renaltherapy care centre. She has also been successful in managing various physiotherapy practices and served as a health expert on Ukhozi FM’s health show. South of Durban. raised and schooled in the township of Umlazi. Nomfundo is devising and implementing yet more plans. she was part of a team that set up a therapeutic rehabilitation facility at a rural hospital. For example. Nomfundo gained valuable experience and knowledge on treating spinal and neural injuries. Through our mentorship programme. in 2001. I employ five people and. ‘Some of the most valuable lessons that I’ve learned have been from setbacks and failures. an honours degree in Physiotherapy from the Medical University of South Africa. Nomfundo is highly ambitious and has various achievements under her belt.Ambitious physiotherapist excels in business By Refilwe Mphane Nomfundo Dzingwa is the proud owner of Dzingwa Clinic Physio. we expose girls from rural schools to the business world. subsequently. ‘The love and passion that I have for what I do keeps me going when things are tough. In 2010. She also has a diploma in Sport Physiotherapy and a certificate in Orthopaedic Manual Therapy.’ she explained. In addition to all these achievements. Nomfundo’s journey into the world of physiotherapy started with her obtaining a BSc degree from the University of Durban-Westville and. she acquired a business loan of R50 000 from the NYDA. the first black and female-owned physiotherapy practice in KwaZulu-Natal to specialise in gynaecological physiotherapy. with which she purchased medical equipment and an electric fence for her practice.’ she concluded. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 55 .’ she said. ‘I also enjoy the development work that I do with the BWA. Born. Today. Serving on the committee of the Business Women’s Association (BWA) has enabled Nomfundo to network and learn from fellow businesswomen. with the introduction of the dialysis and renal-therapy care centre. and performing chest physiotherapy while being mentored by renowned physiotherapist Melanie Skeen at Muelmed Medi-Clinic in Pretoria.

a government programme that not only provides youth with meaningful and accredited skills. They included guides on choosing the right career. Since 2010. ‘The NYDA is proud to be part of an initiative that protects our future. institutional entrance requirements. The project.The NYDA promotes career guidance through Ster-Kinekor cinemas By Lebogang Manganye The NYDA contributed to the My Future.’ concluded Ngubeni. which aims to provide learners in Grades 9. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 • The Trendsetter Initiative falls under the NYS programme. to enable them to make informed decisions about their future career choices. music and storytelling). organised by Nedbank and Primestars Marketing. A further 42 000 secondary school learners will be reached through this year’s career-education broadcasts. the two parities signed a Memorandum of Understanding (MOU). by nurturing the present. The initiative was run on pre-booked Sundays. ‘Our involvement in this programme is part of our bigger “life after school” campaign. which will include training on developing a winning curriculum vitae. Each broadcast will be comprised of a hosted panel-type discussion. Programme implementation — Trendsetters (the trained young people) will be in a position to assist other young people. and community arts and cultural events. workshops. 11 and 12 with career-guidance opportunities. who are ready to improve and grow in the arts. which signified the start of a partnership aiming to enhance the employability of youth in the arts. the project has reached over 70 000 learners from previously disadvantaged backgrounds. once they have completed Matric. On 27 January 2012. culture and heritage sector. The Trendsetter Initiative is a 12-month apprenticeship and trade-skills programme that has the following process cycle: • • Recruitment and selection — Young people will be recruited and selected through community arts centres. Induction and basic training — Training will include orientation and programme-specific training. and international bodies. • • Partnership to boost support for youth in arts. Ngubeni added that. through the Trendsetter Initiative. community and national development. culture and heritage sector. 56 . and heritage and the promotion of national symbols. where we encourage young people to prepare for their future while still at school and give them various options. which contribute to personal. with academic personalities. with about 3 000 learners viewing two pre-recorded broadcasts. Each Trendsetter will recruit and mentor 15 other young people through platforms such as face-to-face interaction. 10. but also incorporates voluntary activities. financial management. as well as personalities from each week’s featured industry. industry-based career profiling. culture and heritage sector By Refilwe Mphane The Department of Arts and Culture (DAC) and the NYDA have joined forces to support young South Africans with an ambition to excel in the arts. Chief Executive Officer of the NYDA. My Career project. was screened in 17 cinemas across the country. Advanced training (personal development) – Training will focus on personal development and life skills for Trendsetters. Exit opportunities – The NYDA and DAC will facilitate employment and other opportunities for Trendsetters through its strategic alliances with the public and private sectors. visual arts and visual literacy. with these sessions focused on creative solutions. project management and presentation skills. acting as panellists. profiling different industries and the opportunities available within those industries.’ said Steven Ngubeni. and bursary and contact information. such as basic training in the performing arts (theatre. My Career is a careereducation project that took place from 26 February to 29 April 2012. culture and heritage sector. the NYDA would be able to help guide young people into their careers of choice. My Future.

for just R200 per service. marketing. based in Gonubie Mall. joined us in April and we also have Sean O’Connell. ‘I do what I love and. website development and many more. in East London.’ elaborated Brent. I studied further. Asked what his challenges were. I was also elected onto the Retail Motor Industry Border Executive Committee. diet and training programmes. he wanted to be a pilot and a marine biologist. The gym has won medals and trophies in various bodybuilding competitions in the Eastern Cape. Brent was offered an IT position by Lantern Financial Services. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 57 . Brent made an offer to purchase.’ he added proudly. an ex-kickboxing coach and international trainer. ‘This prevents upgrades on equipment and. even after the company expanded to form a company called Real People. bookkeeping. as new equipment would attract customers. such as business-plan development. He was promoted to the position of Assistant Manager in the electronic data-interchange department and worked for the group for seven years. Brent owns Bodyrite gym. until I became a systems analyst for the same company. tendering support. prevents membership growth. While working. believe me. While studying Information Technology (IT) at Port Elizabeth Technikon.’ he added. who has been training our athletes. ‘I spent my early years learning and business is where I can implement all the lessons learned. including ladies’ fitness classes. ‘I am very glad that there is an organisation like the NYDA which is able to assist youth to achieve their dreams. is a young entrepreneur destined for a great future. The organisation assisted him with a business-plan voucher from the NYDA’s business consultancy-services voucher programme. until he was offered a position at a motor-repair centre. When Bodyrite gym was put on the market.Successful gym owner determined to achieve even more By Kamogelo Maja Brent Strydom (31).’ he concluded. ‘Len Meyer. Through hard work and support.’ Brent continued. ‘While at the motor-repair centre. a recognised mixed martial arts and karate trainer. in turn. I was promoted to Managing Director and elected Vice-Chairman of the South African Motor Body Repair Association Border Region. At some stage. specialised kickboxing training. The challenges faced have not stopped Brent from making a success of his gym.’ he explained. the gym has managed to transform ordinary training guys into recognised athletes. he explained that the members were not always in a position to pay their membership fees. and many more. there is still more achievements ahead of me — just watch this space. even though they were very low. ‘I worked at the company for a number of years. The programme offers young entrepreneurs access to business-development support services. Asked what his advice for the youth would be.’ Brent said. He explained that his gym had a variety of equipment and activities. The NYDA has played a supporting role in his development thus far. Brent has always been ambitious. He currently employs six people and is determined to achieve even more through his business. he calmly stated that they should dedicate themselves completely to doing what they loved.

SAB partners with the DTI and the NYDA to tackle underage drinking

as the DTI, join forces with the SAB and the NYDA in this initiative to

curb underage drinking. The underlying reasons for underage drinking

are diverse and associated with social assertion (the need to be cooler, the desire to be older or to fit in) and despondency (no sense of future, which makes teens look for unhealthy and destructive avenues of self-

gratification). Industry and government have partnered to embark on this

campaign, to ensure that South African communities are educated on the is bad for their overall development.’

dangers of alcohol abuse and misuse, and the fact that underage drinking

The MEC for Education in KwaZulu-Natal, Mr Senzo Mchunu, echoed Ms Mabuza’s comments by saying: ‘I am very excited about this initiative, because it fits snugly with our My Life, My Future! Campaign, launched by abuse, as well as teenage pregnancy among learners and other forms of is overwhelming evidence of a link between alcohol abuse and teenage

the department in early 2011. That campaign targets alcohol and substance social ills afflicting our society, which are extending to our schools. There pregnancy, as well as the scourge of HIV among young people, particularly in KwaZulu-Natal. We certainly believe that this partnership will go a long way in combating lawlessness in our schools and help us to hone young minds to become productive citizens of this country.’

Mr Andile Lungisa, Executive Chairperson of the NYDA, commented: ‘The The South African Breweries Limited (SAB) partnered with the DTI, the programme to tackle the scourge of underage drinking. is why we have decided to join hands with the SAB to confront – headunderage drinking.’

NYDA takes the national scourge of underage drinking very seriously. That NYDA and provincial Departments of Education to launch a comprehensive on – one of the biggest challenges that the country faces today: that of

The launch of the programme, which took place in Phoenix, Durban,

The SAB, the DTI, the NYDA, provincial governments and subject matter

on 14 February 2012, was hosted by KwaZulu-Natal’s member of the

experts jointly developed the You Decide campaign, which encompasses a series of activities designed to demonstrate to teens that the choices they make now can impact positively or negatively on their future prospects. The campaign includes a series of school visits, which encompass an

executive council (MEC) for Education, Mr Senzo Mchunu. The programme encompasses a series of interactive initiatives aimed at teens, but with strong links to parents, peers, teachers, liquor traders and the community. ‘Statistics indicate that one out of every two teenagers in the average South African home is a user of alcohol,’ said SAB Director of Corporate Affairs and Transformation, Dr Vincent Maphai. ‘Underage drinking is one of the

interactive road show on underage drinking; an inter-school competition plans for teachers; a practical guide for parents; resources for teens,

to consolidate and drive home the messaging; curriculum-aligned lesson including counselling, reading material, a website and a Facebook page; players.

most serious forms of alcohol abuse and has an overwhelmingly negative

a teen ambassador programme and an advanced reality game for 60 core

impact on South African society, as a whole. We view this as unacceptable, so we have partnered with government in a programme that we believe will effect real change among South Africa’s youth.’

The teachers’ material will assist them in making learners understand techniques required to withstand peer pressure. Workshops will also

the harmful effects of underage drinking and giving teens the resistance be held with parents and communities to raise awareness of underage

The groundbreaking programme, called ‘You Decide’, is a multifaceted intervention, grounded in the latest thinking on the clinical and psychological facets of this complex problem. The initial phase of the

thinking, and identify ways to discourage it. In addition, taverns around their role in preventing underage drinking.

programme will run in KwaZulu-Natal, North West, the Free State and

schools will be visited to impress upon tavern owners the importance of

Mpumalanga, reaching some 360 schools and targeting an estimated

400 000 learners this year alone. The programme will be run for a number been covered.

of years, expanding its reach annually until all provinces in the country have

A key innovation of the You Decide programme is an immersive game that shows (rather than tells) selected youths first-hand that the decisions they make now will impact on their future prospects. The game also features local celebrities, Israel Makoe, Khanya Mkangisa, Thembalethu Ntuli and Andile Dlamini, as well as up-and-coming singing sensation, Lilly Million. The game makes use of a number of different platforms, ranging from traditional to social media.

Ms Thezi Mabuza, the Chief Director of the National Liquor Authority,

said: ‘One of the objects of the National Liquor Act, 2003 (Act 59 of 2003) is to reduce the socio-economic cost of alcohol abuse. In order to do this, the Act obliges macromanufacturers and distributors of liquor to

make commitments to combat alcohol abuse. It is in this spirit that we,
58 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

Youth development is a process, not an event: let’s all work together
By Andile Lungisa

As a matter of fact, when merging the NYC and UYF into the NYDA, the National Treasury conducted a due diligence report which, among others, proposed that, for the NYDA to function to its optimal potential, it had to be capacitated to the amount of R930 million. Despite this reality, the NYDA was allocated less than R400 million in its first year of existence. It is because of this reality that it becomes tragic for us when youth development is short-changed, including reducing an already insufficient budget. This should be tragic, not only for the NYDA, but also for the country at large. If the condition of young people does not improve, it will reflect badly on our future. Despite our own limitations, we are making great progress and are able to point out evidence of young people that we have supported, informed by our mandate. Over the past two years, we have ensured the creation of more than 62 000 jobs for young people, the provision of over 24 000 business loans, the training of some 84 000 youth in various skillsdevelopment programmes, and the offering of guidance and information to more than a million youth. We have also developed an IYDS for South Africa, as a road map for all stakeholders to integrate and mainstream youth development in their everyday work. Two annual reports are available to the public, with details of how we have spent our allocated resources against the given mandate. We have provided guidelines and continue to direct government departments and state-owned enterprises on the establishment of youth directorates, towards mainstreaming youth development across government. We continue to launch sustainable legacy projects that change the lives of young people, but, considering the amount of work that lies ahead, we appreciate that it will take more than three years to have the desired impact. Only someone with no appreciation for the realities of youth development and the plight of young people would call the progress by the NYDA ineffective and wasteful. The article that appeared in The City Press, entitled, ‘NYDA thrives on greed’ is, therefore, not only confused, but baseless and devoid of all truth.

Since 1994, government has gradually introduced measures aimed at the development of young people, including the establishment of the National Youth Commission (NYC), in 1996, and the UYF, in 2001. These measures were never adequate, leading to the merger of the two institutions, in 2009, to form the NYDA. Eagerly anticipated by young people, the NYDA was established with the intention of having an integrated and mainstreamed approach to youth development; to intensify youth-development programmes; and to ensure that planning and all policies were geared towards making the necessary impact. Unfortunately, some of the same criticism levelled against the NYC and UYF is being placed at the NYDA’s door. Furthermore, we continue to witness gross misrepresentation of facts relating to the existence and performance of the NYDA. This happens with total disregard of, and lack of appreciation for reality, which should take into account the historical context of youth development in the country, the current status of young people and the resource capacity of the NYDA. Based on the 2010 mid-year population estimates, some 77,6% of the total population is constituted of people below the age of 35 years. About 42% of young people under the age of 30 are unemployed. A variety of reasons may be attributed to this reality, hence the need for a multipronged strategy to address the challenges. If these statistics are taken into account, it is clear that it is unrealistic to conclude that, in less than three years of existence, the NYDA has failed the youth of South Africa. Even those who are in business would tell you that, even with running an enterprise, two years are barely enough to confidently assert failure or success.

The NYDA disheartened by reduced budget allocation
By Gugu Mjadu And Lwazi Stuurman When the NYDA was established almost three years ago, there was a lot of excitement and anticipation among the youth of South Africa, and rightly so.

years of its existence. A total of 42 out of 49 targets were met in the last owned enterprises, to the value of R35,3 million, as well as recruiting,

financial year, thereby creating 18 038 jobs, giving 13 985 loans to youthenrolling and training 66 063 young people under the NYS programme. The NYDA has also made strides in forging private, public and civil society partnerships, which are benefiting and will continue to benefit the youth of South Africa in different areas. A total of 49 partnerships were forged

across all sectors and the international community. These partnerships will assist with synergising the country’s efforts in youth development, towards a much more meaningful impact.

The NYDA was established with a clear mandate and hope that, unlike its predecessor organisations, namely, the NYC and UYF, the agency would be adequately capitalised to deal with the myriad of challenges facing

young people. The NYDA has made many strides in meeting the expectaa panacea of youth development.

‘We have always argued that, despite our achievements, particularly in meeting the set targets for the year, there are still more young people awaiting similar interventions, who we have not been able to reach — Lungisa, Executive Chairperson of the NYDA.

tions of young people, notwithstanding the fact that the organisation is not

our delivery, therefore, remains but a drop in the ocean,’ said Mr Andile

The NYDA has achieved two unqualified audit opinions in both the financial

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

59

‘On this note, we would like to congratulate Minister Pravin Gordhan on his third budget speech delivery yesterday afternoon. The NYDA would like to commend the ministry on raising the education budget from R207 billion to R236 billion, as well as the huge health injection that will see our youth

‘We are disappointed that government has decided to drastically reduce

the NYDA budget, especially considering the depth and extent of the exand ensuring youth participation in the economic development of South Africa,’ added Lungisa.

panded mandate which has, as its overall objective, focused on enhancing

and broader communities benefiting from a much healthier life. Most of all, the NYDA would like to applaud the ministry on the significant job creation boost, giving Public Works an extra R4,8 billion and the community works programme receiving an extra R3, 5 billion,’ Mr Lungisa added.

It is estimated that young people (aged between 14 and 35), make up 42% of South Africa’s population. It is also reported that some 25% of the economically active people in South Africa are unemployed. Of these, young people constitute about 73%. The NYDA, through its programmes and

The NYDA consulted widely with the youth, youth organisations, youth the process of developing an IYDS.

workers and practitioners, government departments and municipalities in

other interventions, has been engaged in efforts to reduce these high and

unacceptable levels of youth unemployment. Indeed, this is a collective ef-

fort by many stakeholders. However, the NYDA plays a key role in this work. Conventional wisdom dictates that the targeted deliverables for the NYDA for the year 2012/2013, be reduced to realistically fit into the set budget constraints. Generally, the annual targets for the year in question should, budget allocation by 7,2% for the year. Targets that do not require direct capital expenditure will not be affected by this reduction, however.

Recently, the NYDA released a manuscript entitled, ‘State of the Youth

Context: Young Generation’. This manuscript formed the basis of the ‘Status of Youth Report’, required by the President of the Republic of South Africa for presentation before Parliament. The manuscript is a report on the literature review and analysis of the secondary data on youth development tions. issues — very insightful information for sound youth development interven-

therefore, be reduced by almost 7,2%, responding to the reduction of the

Later this year, the President will be announcing the Annual NYD priori-

The 2012/ 2013 financial year budget allocation will present serious chal-

ties. These priorities will focus on rural youth, young women, unemployed and underemployed youth, youth in conflict with the law, disabled young persons and the out-of-school, unemployed and unskilled youth.

lenges. Despite chronic underfunding, the NYDA has consistently delivered on its mandate to promote youth development and economic participation.

‘After the consecutive successes that the organisation has achieved over

the past two years, we are extremely disheartened today to announce that the NYDA targets for the 2012/2013 financial year will be reduced, in order Lungisa. to accommodate a reduced budget allocation from National Treasury,’ said

• • • •

This is achieved through key interventions, which include: Facilitating bursaries for young people Providing technical skills training for young people skills training and mentorship

Supporting entrepreneurship through the provision of funding, relevant Facilitating business opportunities.

In Parliament, Finance Minister Pravin Gordhan announced that the government ‘budget continues to support job creation, with a particular focus on to deserving youth-development programmes, including the additional unemployed youth.’ He further announced the increased budget allocation R200 million allocated to the National Rural Youth Service Corps. While this is impressive, it is disappointing that the budget allocation for the organisation with the sole mandate to look after young people, has been cut for the 2012/2013 financial year.

However, given the extent of the challenges facing youth development, more still needs to be done.

The NYDA has achieved a great deal with an insufficient budget, to serve the needs of all youth, especially those in peri-urban and rural areas.

The NYDA Act, 2008 (Act 54 of 2008) stipulates that the organisation must be accessible and within reach of all youth, including those in rural areas. This call was further emphasised by President Jacob Zuma in his 2010 State of the Nation Address, when he announced that government had the country, so that it can assist us to mainstream youth development programmes within government.’ Because of funding constraints, the municipalities.

For the financial year 2011/2012, the NYDA was allocated R386 million. During the 2010 to 2013 MTEF announcement, National Treasury indicated that the NYDA was to be allocated R405 million for the 2012/2013 financial year. However, the 2012 to 2015 MTEF announcement indicated that the NYDA

directed the NYDA ‘to work faster to establish its structures, throughout

organisation presently only has 144 access points, instead of points in all

had only been allocated R376 million for the financial year 2012/2013. This represents a R29 million reduction on the R405 million, as committed durallocation year-on-year, then this reflects a R10 million reduction on the budget allocated to the NYDA. ing the 2010/2011 MTEF announcement. If we were to compare the budget

‘With an increased budget and more support from government, we would be able to extend our footprint to include the most remote parts of South Africa. The support from other sectors, including business, would ensure

that the country implemented more youth-development programmes,’ said Lungisa. The NYDA calls on all spheres of government, and private and civil society sectors, to support youth development through tangible youth-development programmes.

Of note, the Minister mentioned that most of the money would go to social spending and that the youth of South Africa would benefit the most from the budget tabled.
60

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

The implementation guidelines will direct how sectors of society. Through the office of the Presidency. The resources allocated through social corporate investment budgets need to be channelled and coordinated to achieve the goals of the NYP 2009–2014. consolidate these and compile a report for the President that will form part of the agency’s annual reporting process to the President. should implement programmes aimed at the development of young people. Where there is slow movement. where there is progress. and mayors and municipal managers at local-government level must play their part by ensuring that youth development is mainstreamed. in most instances we have been able to make progress. aimed at simplifying the implementation of the policy. In this case. However. integrated approach by all sectors of society is adopted in the country. The IDC on Youth Affairs is a structure convened and coordinated by the NYDA. who comprise 25% of the country’s population. 2008 (Act 54 of 2008) empowers the NYDA to facilitate a process towards ensuring that youth development is mainstreamed and integrated in a uniform manner by all sectors of society. Its main purpose is to assist in planning and monitoring progress made by stakeholders in implementing the NYP 2009–2014. impacting negatively on the progress of youth development. it appears that. young people account for 73% of unemployed South Africans. as defined in the NYP 2009–2014. It is often argued that South Africa has some of the best policies. particularly in light of the current unemployment situation of young people. and private and non-governmental organisations. three years since its adoption. at times. and private and nongovernmental organisations. monitored and evaluated. It will meet twice annually: a quarter before the start of the financial year for most private sector institutions. including interacting with organs of state. to assist them with planning. the private • • sector and non-governmental organisations. Irrespective of business. there has not been an effective tool for measuring these efforts. Progress on implementation should be monitored and reported through quarterly reports. However. to matters relating to young people. the NYDA has proposed a structure similar to the IDC on Youth Affairs. The structure will be coordinated by the NYDA. even though there may be initiatives. Section 6 and 7 of the NYDA Act gives the organisation the power to coordinate and ensure that organs of state take into consideration the NYD priorities when planning activities of their business. Ministers and heads of departments at national level (directors-general). there may be challenges in terms of understanding its importance and how it should be implemented. the private sector and civil society. as a country. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 61 . The NYDA will. MECs at provincial level and municipal managers at local-government level. Cabinet approved and adopted the NYP (2009–2014) as a national policy framework for youth development in South Africa. The objectives of the NYP 2009–2014 implementation guidelines include the following: • Promotion of a uniform approach by all organs of state. which will be tabled in the Interdepartmental Committee (IDC) on Youth Affairs and made available to the NYDA. we will be able to make a significant impact on the unemployment rate. Just like the public sector. We have understood this to be the result of the broadness of our mandate and. while some sectors may be aware of the NYP (2009– 2014). The IDC on Youth Affairs will meet quarterly and the NYDA will include a summary of minutes of the IDC on Youth Affairs in its quarterly reports to the Presidency. public institutions need to develop specific youth-development strategies and plans. Even at the level of the private sector. the private sector needs to plan and implement the NYP 2009–2014 imperatives. including organs of state. and allocate resources for penetrating interventions that are in line with their respective mandate. should be planned for. With about half (42% in 2011) of the country’s population comprised of people belonging to the age group 14–35 years. Provision of a guide on how interventions and programmes. While not to our full satisfaction. The NYDA Act. Currently. and submit annual reports regarding their implementation to the NYDA in the prescribed manner. have continued to make inroads. particularly in various organs of state. mainstreaming effectively means that every public. to be used to report against the country’s performance on the prescribed NYP 2009–2014 imperative and programmes. Often the blame for the lack of development or limited development of young people has been levelled at the NYDA. and is comprised of representatives delegated by heads of departments at national level (directors-general). Provision of standard youth-development indicators. but is lacking in implementation. The NYDA is confident that only through systematically coordinated efforts towards a common goal by all organs of state. as well as at the end of the financial year. in turn. We have also realised that. It is for this reason that the NYDA developed the NYP implementation guidelines. youth development continues to be implemented in an uncoordinated manner that cannot be monitored or measured. premiers and MECs at provincial level. which is a situation we cannot accept in South Africa. it has become urgent that a coordinated. private and civil society organisation consciously and continuously puts youth development at the centre of the planning and implementation of activities that form their business.Towards a uniform approach to youth development By Andile Lungisa In 2009. in order to assist the private sector to plan and allocate resources to the imperative areas of the NYP 2009–2014. in line with that mandate. it becomes important that guidelines are developed to help fast-track the processes. such progress is slow. The NYP was a culmination of an extensive and comprehensive consultation process by relevant youth institutions towards ensuring integrated and sustainable youth development in the country. including measures to ensure compliance with sectors that are moving slowly on youth development. as defined in the NYP 2009–2014. implemented. to evaluate progress with the implementation of their interventions.

STATEMENT of corporate GOVERNANCE 62 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

as well as adopting and approving the materiality framework. to ensure that the NYDA continued to deliver services to the young people of South Africa. in instances of non-compliance. among others. integrity and transparency. and dealt with. The board has duly implemented measures to address cases of non-compliance whenever they are identified. the NYDA is guided and governed by the provisions of the NYDA Act. In developing these structures. the Board of Directors of the NYDA took cognisance of all NYDA operations. In recognition of the fact that corporate governance was an important element of the management and operations of the NYDA. 1999 (Act 1 of 1999) (PFMA). the board established governance structures. clearly articulates how its provisions should be adhered to. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 63 . Furthermore. the NYDA is subject to. provide a comprehensive set of governance policy directives and guidelines to promote the highest standards of corporate governance within the NYDA. The board. Governance principle The Code of Conduct and Fraud Prevention Plan commit the NYDA’s management. Being a public entity. The NYDA came into existence pursuant to Section 21(2) of the NYDA Act. listed under Part A of Schedule 3 of the Public Finance Management Act. board committee charters. and related policies and processes. in line with the provisions of the NYDA Act.3. Systems and procedures were implemented to ensure that the Code of Conduct and Fraud Prevention Plan were being communicated and adhered to by all employees and the board.and Statutory Compliance Regulatory Environment The NYDA is classified as a public entity. During the year under review. The board will continue to develop and improve its corporate governance practices to ensure that they comply with the requirements for best practice. to the highest standard of ethical and professional behaviour. the applicable provisions of the PFMA and has adopted the Protocol on Corporate Governance for the Public Sector. and with all stakeholders with whom they interact. the NYDA continues to assess its compliance with good corporate governance practices. the NYDA engaged in a process to align the organisational structure of the entity with the requirements of the NYDA Act and the mandate of the NYDA. and staff. To this end. and require all employees to act in utmost good faith and integrity in all transactions. The Code of Conduct. as required in terms of Treasury Regulation 28. and to ensure that the NYDA met the need for accountability. together with the Human Resource Policy. in its structure and operations. 2008 (Act 54 of 2008). including a fundamental respect for the law. according to the provisions of the NYDA Act.

to ensure that the board is capable of discharging all its responsibilities towards the NYDA. The board has unrestricted access to accurate. in this regard. therefore.Governance structures Board of Directors The NYDA is led by. comprising eight members: five independent. except for the Chief Executive Officer. As required by the NYDA Act. in terms of approved targets. Its fiduciary and general responsibilities are listed in Section 50 of the PFMA and these responsibilities have been incorporated in its charter. the board may obtain outside or other independent professional advice. experience and other relevant qualities inherent in the board members. the board is the accounting authority of the NYDA and retains full and effective control of the NYDA. In performing its tasks under its terms of reference. The Chief Executive Officer. from time to time. and the Chief Executive Officer as an ex-officio board member with no voting rights. the board remains accountable and responsible for the performance and affairs of the NYDA. Selection and appointment of professional advisors take place in accordance with the NYDA’s standard supply chain management policies and processes. non-executive directors. targets and budgets. policies and resolutions are sustainably implemented and managed. appointed and designated as Chairperson and Deputy Chairperson. The mandates of these committees are contained in their respective charters and have been duly approved by the board. appointed by the board. along with his executive team (the Operations Executive Committee). They meet with the board. two executive directors. who is appointed by the board. manages the day-to-day affairs of the NYDA and ensures that the board’s strategies. an effective and efficient unitary board. as deemed necessary. in relation to targets • ensuring that risks arising from the execution of the strategy are effectively managed and controlled. The Chief Executive Officer and his executive team provide the board with the relevant information to assess the performance of the NYDA. The duties and responsibilities of the board were determined primarily with reference to the Protocol on Corporate Governance for the Public Sector. and to adequately and properly discharge the directors’ responsibilities. These duties and responsibilities comprise. to discuss its performance and review the corporate strategy. The board is appointed by the President of the Republic of South Africa on recommendation of Parliament. The executive authority evaluates the mix of skills. and controlled by. the board has established committees to assist with the efficient and effective advancement of the board’s business. the PFMA and the NYDA Act. among others: • formulating corporate strategy and setting targets • approving budgets to procure the necessary resources to execute the corporate strategy • reviewing actual performance. on an annual basis. However. The executive authority believes that the board is well constituted. relevant and timely information. The NYDA reports to the Minister in the Presidency: Minister Collins Ohm Chabane and. its executive authority. The NYDA board governance structure The NYDA’s board is assisted in discharging its duties through the following committees: • Audit Committee (established in terms of Section 77 of the PFMA) • Human Resources and Remuneration Committee • Credit and Investment Committee • Executive Management Committee • Development Committee 64 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . In terms of Section 49 of the PFMA.

subsequent to year-end. assists the Chief Executive Officer with discharging his duties and those of the board. However. The company secretary is a central source of guidance. certain duties are still the exclusive responsibility of the board. primarily. and will lead the establishment of the committee NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 65 . The Board of Directors delegates specific authorities to these committees and to the Induction programme The board and. Except to the extent disclosed in these financial statements. which is comprised of the heads of each division of the NYDA. Delegation of authority The ultimate responsibility for the NYDA’s operations rests with the board. A summary of the attendance of directors at board meetings during the year under review is outlined in the following table: Names of members Mr Andile Lungisa (Chairperson) Mr Yershen Pillay (Deputy Chairperson) Mr Steven Ngubeni Mr Mcebo Khumalo Ms Pholisa Makeleni Ms Innocentia Motau Mr François Slabber Ms Maria Tshabalala Meetings attended 7/9 7/9 8/9 7/9 7/9 8/9 7/9 8/9 Attendance record (%) 78 78 89 78 78 89 78 89 Secretary of the board The board secretary. and entities. Delegating authority to board committees or management does not in any way mitigate or dissipate the boards’ duties and responsibilities. agents or service providers are involved. 1 Mr Mcebo Khumalo has been appointed as the Chairperson of the Development Committee. responsibilities and expectations. securities or similar interests in any such company. to the board on matters of business ethics and good governance. in which the NYDA’s clients. Board members are prohibited from dealing in or owning shares. Board meetings The board met nine times during the year under review. who is appointed by and reports to the board. and advice. the board chairperson. and the duties and responsibilities of individual directors. are responsible for ensuring that induction is offered to new directors. The Operations Executive Committee. The performance of the board secretary is appraised in the same manner as that of the directors.The NYDA’s Board of Directors and Board Committee structure. senior management and the business environment. as at 31 March 2012 Position held on Board Committee Human Credit and Directors Executive: Mr Andile Lungisa (Chairperson) Mr Yershen Pillay (Deputy Chairperson) Mr Steven Ngubeni (Chief Executive Officer) Non-Executive: Mr Mcebo Khumalo1 Ms Pholisa Makeleni Ms Innocentia Motau Mr François Slabber Ms Maria Tshabalala Member Member Chairperson Member Member Chairperson Chairperson Member Member Chairperson Member Member Chairperson Member Member Audit Investment Resources and Remuneration Executive Management Provincial Advisory Board Development Chief Executive Officer. The board secretary also serves as secretary on the board committee. none of the directors dealt in any shares. securities or similar interests in any company. Directors’ interest in contracts Every board member is required to disclose their business interest in other listed and non-listed companies. when it is not in session. ensures that the board functions effectively by providing detailed guidance on the nature and extent of the board. in order to improve and maintain the effectiveness of the entire board. in the board secretary’s Register of Interests. The induction programme is reviewed from time to time to ensure its effectiveness when inducting new board and board committee members. as well as the directors’ fiduciary duties. which retains effective control through a well-developed governance structure of board committees specialising in certain areas of the business. as well as education and training to existing directors. Directors are informed of the NYDA’s programmes and operations.

before recommendation to the Board of Directors for approval • Periodic evaluation of the suitability and performance of auditors • Review of policies and recommendation to the board for approval • Independent specialists are remunerated. Its purpose is to assist the board in discharging its duties relating to the safeguarding of assets. The committee reports to the board on a quarterly basis. It further considers for approval and recommends to the board. Details of attendance by members of the committee for the period 1 April 2011 to 31 March 2012 Name of members Mr Vonani Mathebula (Chairperson) Mr Peter Koch Ms Innocentia Matou Meetings attended 4/4 3/4 3/4 Attendance record (%) 100 75 75 Credit and Investment Committee The committee comprises three members. as provided for in Section 77 of the PFMA. This is considered vital to ensure that the NYDA subscribes to good and fair labour practices. Its purpose is to ensure that commitments the NYDA seeks to make to projects are aligned with the objectives of the NYDA and further reviews of the portfolio of loans and projects funded. Details of attendance by members of the committee for the period 1 April 2011 to 31 March 2012 Names of members Ms Innocentia Motau (Chairperson) Ms Maria Tshabalala Mr Steven Ngubeni Meetings attended 3/3 3/3 2/3 Attendance record (%) 100 100 67 Human Resources and Remuneration Committee The committee is comprised of an independent specialist and four members. of which two are independent and one is a non-executive board member. financial and risk areas are adequately addressed • Appropriate policies and internal control recommendations by internal audit and the Auditor-General are implemented • The annual financial statements and annual report have been properly prepared by management and reviewed by the Auditor-General. is comprise of three members. in order to ensure that the rules governing the committee are still relevant and applicable. Its purpose is to provide advice and guidance to the board on matters relating to human resources. The NYDA Chief Executive Officer attends on invitation. The committee meets on a quarterly basis and assesses projects recommended for approval. where the NYDA would have a funding exposure of above R10 million. The committee reports to the board on a quarterly basis. The committee reports to the board on a quarterly basis. of which two are non-executive directors. the operation of adequate systems and control processes. The Audit Committee is further responsible for ensuring the following: • The NYDA’s audit. The full terms of reference of this committee are contained in its charter. and has the relevant human resources to achieve its mandate. and the preparation of accurate financial reporting. The committee is further responsible for ensuring the following: • Projects fit the detailed programme criteria established by the NYDA • The NYDA does not have undue exposure to any particular project and/or service provider organisation • Adequate controls and mitigating measures are in place for managing project risks which have been identified • Recommendation of the approval of projects to the board. based on the guidelines issued by the National Treasury from time to time for each meeting attended.Board statutory committees Audit Committee The Audit Committee. established in terms of Treasury Guidelines. The board reviews the mandate and powers of the Investment Committee on an annual basis. of which two are non-executive and one is the Chief Executive Officer. The committee is further responsible for the following: • Recommending all policies for conditions of employment of staff • Determining all essential components of remuneration • Establishing remuneration credibility with all key stakeholders • Advising on effective retention strategies 66 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . The Credit and Investment Committee has an approval limit of R5 million to R10 million. in cases where any single commitment exceeds R2 million.

until the Chief Executive Officer has been appointed. The committee performs the following duties: • Monthly review and approval of the NYDA programme and financial performance • Review and approval of all quarterly reports.• • Determining the basis for measuring the performance of executive directors and senior management Recommending annual salary increments and rewards. he attends the committee meeting by invitation. The committee is responsible for the following: Advising the board on the way forward regarding programmes referred to the board by the PAB Guiding the board in defining the youth-development interventions and programmes. Details of attendance by members of the committee for the period 1 April 2011 to 31 March 2012 Names of members Mr Mcebo Khumalo (Chairperson) Ms Maria Shabalala Mr Steven Ngubeni 2 Meetings attended 0/0 0/0 0/0 Attendance record (%) 0 0 0 67 The Board appointed Mr Pillay to serve as a member of the committee in the interim. excluding the Procurement Tender Committee • Review of progress on the implementation of the NYDA communication strategy • Prioritising the allocation of capital. • • • • The board reviews the mandate and powers of the committee on an annual basis. Deputy Chairperson of the board and the Chief Executive Officer. The board reviews the mandate and powers of the committee on an annual basis. Details of attendance by members of the committee for the period 1 April 2011 to 31 March 2012 Names of members Ms Pholisa Makeleni (Chairperson) Mr Francois Slabber Mr Steven Ngubeni Joy Ndlovu Meetings attended 6/7 7/7 5/7 4/7 Attendance record (%) 86 100 71 57 Executive Management Committee The Executive Management Committee is comprised of the Chairperson of the board. as delegated by the board. Consequently. The committee reports to the board on a quarterly basis. Details of attendance by members of the committee for the period 1 April 2011 to 31 March 2012 Names of members Mr Andile Lungisa (Chairperson) Mr Yershen Pillay 2 Mr Steven Ngubeni Meetings attended 2/5 5/5 4/5 Attendance record (%) 40 100 80 Development Committee The Development Committee is comprised of three members. and technical and human resources • Attending to any other matters. The full terms of reference of this committee are contained in its charter. in order to consider market-related remuneration and related benefits. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . which was duly approved by the board. prior to such reports being submitted to the Executive Authority • Review of progress on the implementation of the board’s projects • Review of progress on the implementation of strategic partnerships • Identification and review of strategic risks as they arise • Review of the minutes of all committees led by the Chief Executive Officer. in order to ensure that the rules governing the committee are still relevant and applicable. two non-executive directors and the Chief Executive Officer. as envisaged in Section 4 of the Act Providing guidance to the board on issues to be included in conducting youth-development research Providing guidance to the board on issues that would ensure that youth development was included in national priorities and subsequent government programmes • Providing guidance to the board on issues that would ensure that youth interventions were in line with the IYDS • Providing input to the board on the review of the capacity of the NYDA to implement programmes. to ensure that the rules governing the committee are still relevant and applicable. The committee has access to independent surveys and consultants.

The Loans Approval and Review Committee is responsible for ensuring that: • projects submitted are aligned to the aims and objectives of the NYDA • projects comply with the detailed programme criteria established by the NYDA • the NYDA does not have undue exposure to any particular project and/or service provider organisation • adequate controls and mitigating measures are in place to manage risks which have been identified • projects are recommended for approval to the Investment Committee. in cases where any single commitment exceeds R5 million. and the board. It is also responsible for recommendations of policies and strategies to the board. Loans Approval and Review Committee (previously known as the Management Committee) The Loans Approval and Review Committee ensures that commitments which the NYDA seeks to make to projects are aligned with the objectives of the NYDA. in respect of project grants with a value of less than R5 million. approved by the Board of Directors. Members of the Operations Executive Committee. as at 31 March 2012 Names of members Mr Steven Ngubeni (Chairperson) Mr Clayton Peters Ms Ncedi Hluyo Ms Gugu Mjadu Mr Bongani Magongo Mr Mzwabantu Ntlangeni Ms Margaret Tleane Ms Magdalene Moonsamy Mr Mzwabantu Ntlangeni Mr Khathutshelo Ramukumba Mr Michael Mashinini Ms Tamari Mavasa Ms Nthuseng Mphahlele Ms Linda Ndlova Mr Siviwe Mkoka Mr Vincent Mulaudzi Mr Daniel van Vuuren Mr Edgar Mahura Chief Executive Officer Head of Department: Skills Development Transfer (until end April 2011) Head of Department: Human Resources (until end May 2011) Head of Department: Communications (until end June 2011) Head of Department: Research and Evaluation (until end May 2011) Acting Chief Operations Officer (until end May 2011) Head of Department: Policy Lobby and Advocacy ( until end May 2011) Chief Operations Officer (from June 2011) Acting Executive Manager: NYDA Partnerships and International Relations Chief Financial Officer (from 1 June 2011 ) Acting Chief Financial Officer (until end May 2011) Executive Manager: Economic Development (from 01 June 2011) Executive Manager: Skills Development Transfer (from 01 June 2011) Executive Manager: Communications (1 July 2011) Executive Manager: Research (1 June 2011) Executive Manager: Corporate Affairs (1 June 2011) Executive Manager: Service Delivery Channel Acting Executive Manager: ICT The following managers have a standing invitation to attend Executive Committee meetings: Ms Teboho Sejane Mr Sanjay Hargovan Mr Clayton Peters Business Strategist General Manager: Risk and Internal Audit Project Manager from May 2011 The Operations Executive Committee met eight times during the year under review. 68 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . It has decision-making authority. acting as a medium of communication and coordination between the various business units.Committees led by the Chief Executive Officer The following committees. This committee facilitates the effective control of all operational activities. This committee meets once a month. in terms of its delegated authority. and monitoring their implementation. including the day-to-day management of the business of the NYDA. have been delegated with the day-to-day operations and decisions of the NYDA. in line with the board’s mandate. • Operations Executive Committee • Loans Approval and Review Committee (previously known as the Management Committee) • Bid Adjudication Committee (previously known as the Procurement and Tender Committee) • Skills Development and Employment Equity Committee • Occupational Health and Safety Committee • Operational Project Committee Operations Executive Committee The committee is responsible for strategic and operational matters. some of which are led by the Chief Executive Officer.

safety and environment-related internal control and risk-management systems • Ensuring that effect is given to the applicable legislation. The NYDA has appropriate policies and practices in place to ensure compliance with the provisions of the Occupational Health and Safety Act. The OHSC is responsible for the following: • Ensuring that the NYDA adopts. The committee met once during the year under review. representative of the demographics of the NYDA. Service Delivery Channel and Partnerships. as the Chairperson. duly approved by the board. the Chief Information Officer: NYS and Skills Development. Executive Managers: Economic Development and Service Delivery Channel. and its programmes. The Loans Approval and Review Committee met seven times during the year under review. The BAC is chaired by the Chief Executive Officer and the members are: the Chief Financial Officer. including the appraisal of entrepreneurship loans and investments. Skills Development and Employment Equity Committee The objective of the Skills Development and Employment Equity Committee (SDEEC) is to ensure that the NYDA complies with legislation relating to skills development and employment equity. cost-effectiveness. The Committee met four times during the year under review. appointed by and reporting directly to the Chief Executive Officer. as secretariat. to evaluate grant-funded programmes. guided by the relevant regulatory framework • The introduction of proper procedures. regarding skills development and training for all employees • Ensuring that the principles which underpin skills development and employment are applied in a fair manner to all employees of the NYDA. in accordance with the procurement policy of the NYDA and the full terms of references contained in its charter. The BAC is responsible for the following: • The development and implementation of a sound and fair procurement policy. The SDEEC is chaired by staff members appointed by the executive committee and reports directly to the Chief Executive Officer. The OHSC is chaired by a senior staff member. which includes the achievement of best quality.The Loans Approval and Review Committee is comprised of the Chief Executive Officer. job level and disability. The Senior Manager: Procurement with the Risk Unit has a standing invitation to committee meetings and the Supply Chain Management Unit. the Chief Financial Officer and Executive Managers. The committee met two times during the year under review. processes and systems to give effect to the procurement policy • The adjudication of bids. Operational Project Committee This committee is chaired by the Chief Operations Officer and the members are: the Executive Manager: Economic Development. in respect of gender. Bid specification and bid evaluation committees are established with a limited mandate to support the BAC with procurement for programme or projectspecific requirements. and the safety of all employees and contractors on the NYDA premises. Emphasis on Black Economic Empowerment and Youth-Owned SMMEs is a key objective of the NYDA’s preferential procurement strategy. Occupational Health and Safety Committee The objective of the Occupational Health and Safety Committee (OHSC) is to ensure that the NYDA complies with legislation relating to health and safety issues affecting employees. and the General Manager: Strategic Development (Chief Executive Officer’s Office). and optimum delivery of products and services to the NYDA. safety and environment policies and procedures • Ensuring that the NYDA maintains effective health. The effectiveness and compliance of procurement and tendering management are monitored through formal reporting by the Supply Chain Manager to this committee. maintains and applies appropriate health. Bid Adjudication Committee (previously known as the Procurement and Tender Committee) The objective of the Bid Adjudication Committee (BAC) is to ensure that goods and services are procured. and a representative from the Risk Unit. The SDEEC is further responsible for the following: • Monitoring implementation of the workplace skills plan and employment equity plan • Making recommendations to the NYDA management. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 69 . The committee is comprised of 11 members. race. the Chief Operations Officer. in accordance with the provisions of the Act. 1993 (Act 85 of 1993).

The committee has an approval limit of R300 000 to R5 million. manage. and the proper authorisation 70 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . The Risk Management Committee is coordinated by the Risk Management Unit. The NYDA views risk management as an ongoing process and. reporting to the office of the Chief Executive Officer. but the primary responsibility still remains with the board. in order to ensure that its management of business risk is progressive and adjusted to changing circumstances. The NYDA’s approach to risk management is to identify as many of its business risks as possible. Micro and Small Loans Approval Committee The Micro and Small Loans Approval Committee is chaired by the Executive Manager: Economic Development. reduce. but not absolute. ensuring that major risks are identified and reported. the adequate safeguarding of assets against material loss or unauthorised loss. as well as further significant risks that affect decisions of stakeholders (including the shareholder) in their dealings with the NYDA. in order to assist with the execution of the risk-management process. The members are: the Senior Manager: Enterprise Finance. health and safety risks • Political. Audit Committee responsibility The Audit Committee has the responsibility of assisting the board with ensuring that all material risks to which the NYDA is exposed are properly managed. and risk-management policies and procedures. It is responsible for ensuring that a risk assessment is undertaken at least once per annum. assurances regarding the integrity and reliability of the annual financial statements. social and economic risks. and provides and maintains the risk-management infrastructure to assist management in fulfilling its responsibilities. including the Audit Committee. evaluate. approach to and management of risk is documented in the NYDA Risk Management Strategy and distinguishes between the following identified areas of risk: • Business and operational risks (corporate governance. mitigate and communicate the risks the NYDA is exposed to. as well as that reports on the risk-management process are regularly received and reviewed. continued to review its enterprise-wide risks. at appropriate intervals. The General Manager: Risk and Internal Audit assists in the execution of the risk-management process. the Senior Manager: Investment (Finance). sustainability. Internal controls The NYDA’s internal controls and systems are designed to provide cost-effective. Risk management Board responsibility on risk management The board is responsible for the total process of risk management. In this regard. the Audit Committee will work in close co-operation with the Risk Management Committee. Branch Loans Approval and Review Committee The Branch Loans Approval and Review Committee is chaired by the Branch Manager and the members are: a coordinator from Business Development Services and a coordinator from Enterprise Finance with an approval less than R50 000. monitors the entire risk profile. at regular intervals. Risk management responsibility The NYDA’s Risk Management Unit. and a representative from the Risk Unit. Risk policies are developed and reviewed from time to time. programmes and support) • Credit and market risks • Human resources risks • Information and technological risks • Business continuity and disaster recovery • Physical. Members are appointed by the Chief Executive Officer. the board has institutionalised several structures within the NYDA. In order to effectively discharge these responsibilities. to take account of new business imperatives. and to formulate and implement policies to counter. the General Manager: Strategic Programmes (Chief Executive Officer’s Office). Members are appointed by the Chief Executive Officer. The General Manager: Risk and Internal Audit has a standing invitation to attend the Board Audit Committee. the Senior Manager: Investments (Finance). or eliminate these risks. Its responsibility further includes ensuring that proper processes and structures are in place to identify. The NYDA’s policy on. during the year under review. which includes the system of internal control. control. and a representative from the Risk Unit. the General Manager: Service Delivery Channel. and is in the process of establishing the Risk Management Committee. which will be a subcommittee of the Audit Committee.Loans Approval and Review Committee The Loans Approval and Review Committee is chaired by the Chief Finance Officer and the members are: Executive Managers: Corporate Partnerships and Economic Development. with an approval limit of R50 000 to R300 000. reasonable.

in line with the NYDA Act and in compliance with Section 197 of the Labour Relations Act. and all employees receive compulsory training regarding the awareness and obligations of the NYDA. as defined in the NYDA’s fraud-prevention and whistle-blowing policy. 1995 (Act 66 of 1995). The Risk Management Unit receives and follows up on every report received and updates the Audit Committee on the status or progress of reported incidents. Internal audit is further used as a tool by management for the following: • Assisting the NYDA to achieve its mandated objectives • Recommending improvements to the NYDA’s operations • Mitigating losses. government Thusong service centres. structures and approval frameworks. Internal audit Internal audit is an integral part of the NYDA and is prescribed by the King II Report. The board has further adopted a new set of employment terms and conditions of employment. and has been outsourced to an audit firm. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 71 . in terms of the National Credit Act (NCA). Internal audit is aimed at providing reasonable assurance on the effectiveness of the NYDA’s corporate governance. and quality human resources that would enable the agency to achieve its mandate. The internal auditors have unrestricted access to members of the Audit Committee and the Chairperson of the Board. which are identified by operational risk management and confirmed by management. Financial Intelligence Centre Act (FICA) The NYDA believes that it is fully compliant with the Financial Intelligence Centre Act.and recording of transactions. as required by the Promotion of Access to Information Act. in any form. The NYDA maintains a fraud/whistle-blowing hotline. which will be available on the NYDA website. The NYDA is in the process of developing a Manual of Information. through a broad range of communication channels.org. illegality and damage to reputation. including its Internet portal (www. Communication and corporate affairs The NYDA enters into dialogue with institutional stakeholders for constructive engagement in forming mutual partnerships for achieving the objectives of youth development. including youth. which seek to achieve equity and parity within its employment practices. and acts in accordance with the standards set by the Institute of Internal Auditors. in respect of FICA. service providers and beneficiaries of the NYDA are encouraged to report any suspected fraudulent. corrupt or unethical activities. 2001 (Act 38 of 2001) (FICA). such as the Protected Disclosures Act. Functionally. and has implemented relevant processes to ensure that it complies with the relevant provisions of the Act. Employment practices The board has managed the transfer of employees from the former UYF and the NYC. within their rights. Employees. risk-management processes and the system of internal control.za).youthportal. to support the international struggle against moneylaundering activities. The control system includes comprehensive reporting of critical risk areas. National Credit Act The NYDA is registered as a credit provider. skilled personnel with appropriate segregation of duties. as well as policies that are designed to attract. motivate and retain relevant. constituency offices. procedures. The policy enables the protection of those that report these offences. and have a standing invitation to all Audit Committee meetings. as afforded by legislation. accessibility and accountability regarding reports and communication. as they are identified. and outreach events. through clearly defined lines of accountability and delegation of authority. approved by the board. the NYDA call centre (08600 YOUTH). Internal audit operates under formal terms of reference. Directors and officials of the NYDA are expected to take cognisance of the fact that society demands greater transparency. Therefore. monitored throughout the NYDA and applied by trained. which is outsourced to an independent external service provider. are not tolerated and are investigated and followed up by the application of all remedies available within the full extent of the law. its service providers. 2000 (Act 27 of 2000). administratively. the PFMA and the Protocol on Corporate Governance. Fraud prevention and whistle-blowing Fraud or fraudulent activities. the national network of youth advisory centres. Due consideration is given to statutory and other directives that regulate the dissemination of information by the NYDA’s directors and officials. the NYDA makes every effort to ensure that information is readily available to its staff and is distributed to its stakeholders. it reports to the Board Audit Committee and. Such controls are based on established written policies. to the Executive Management of the NYDA. Management and internal auditors closely monitor the controls and ensure that actions are taken to correct deficiencies.

ANNUAL FINANCIAL STATEMENTS for the year ENDED 31 MARCH 2012 72 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 73 .

...........INDEX Accounting Authority’s Responsibilities and Approval .........................................................................94 74 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .......................................................75 Report of the Auditor-General ........83 Statement of changes in Net Assets ...............84 Cash-Flow Statement ...................................86 Notes of Annual Financial Statements ...............................................79 Statement of Financial Position .......76 Accounting Authority’s Report ................................................82 Statement of Financial Performance ......85 Accounting Policies ......................

including any interpretations. as amended. These annual financial statements are based on appropriate accounting policies. established by the NYDA. The Accounting Authority was of the opinion that the system of internal control provided reasonable assurance that the financial records were reliable for the preparation of these annual financial statements. as the term of the previous board expired during the current financial year. effective from 1 October 2009.Accounting Authority’s Responsibilities and Approval The National Youth Development Agency (NYDA) was established by the National Youth Development Agency Act No. It is their responsibility to ensure that the financial statements fairly present the state of affairs of the NYDA as at the end of the financial period and the results of its operations and cash flows for the period then ended. which were consistently applied. were approved by the Accounting Authority and signed on its behalf by: Mr Steven Ngubeni Acting Accounting Authority of the NYDA 31 July 2012 . any system of internal financial control can only provide reasonable. Currently. The appointment of board members is in the process of being finalised by the Office of the Presidency. assurance against material misstatement or loss. While operating risk cannot be fully eliminated. as set out on pages 82 to 121. in conformity with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and directives and guidelines issued by the Accounting Standards Board (ASB) from time to time. by reasonable. effective accounting procedures and adequate segregation of duties. to maintain adequate accounting records and is responsible for the content and integrity of the financial statements and related financial information included in this report. This report and the accompanying financial statements cover the period 1 April 2011 to 31 March 2012. The external auditors are engaged to express an independent opinion on the financial statements and were given unrestricted access to all financial records and related data. The focus of risk management is on identifying. The standards include proper delegation of responsibilities within a clearly defined framework. The annual financial statements were prepared in accordance with SA Standards of GRAP. to ensure an acceptable level of risk. However. in all reasonable circumstances. The Accounting Authority is required by the Public Finance Management Act No. The Accounting Authority acknowledges that it is ultimately responsible for the system of internal financial control. aimed at reducing the risk of errors in a cost-effective manner. 1 of 1999 (PFMA). and not absolute. The merger was pursuant to Section 21(2) of the NYDA Act. The annual financial statements for the year ended 31 March 2012. and supported. 54 of 2008 (NYDA act) through the merger of the National Youth Commission (NYC) and the Umsobomvu Youth Fund (UYF). To enable the Accounting Authority to meet these NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 75 responsibilities. the authority sets standards for internal control. which were prepared on a going-concern basis. prudent judgments and estimates. systems and ethical behaviour. within predetermined procedures and constraints. The Chief Executive Officer has been appointed by the Office of the Presidency to act as the Accounting Authority of the NYDA in the interim. controls. assessing. These controls are monitored throughout the NYDA and all employees are required to maintain the highest ethical standards in ensuring that the NYDA’s business is conducted in a manner that is above reproach. the NYDA endeavours to minimise risk by ensuring the appropriate management and application of infrastructure. and places considerable importance on maintaining a strong control environment. the NYDA does not have a Board of Directors. managing and monitoring all known forms of risk across the NYDA. guidelines and directives issued by the ASB.

which comprise the statement of financial position as at 31 March 2012. In my opinion. 1999 (Act No. including the assessment of the risks of material misstatement of the financial statements. At 31 March 2012. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Auditor-General’s responsibility 3. entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. the financial statements present fairly. the statement of financial performance. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management. and the notes. 9. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement. comprising a summary of significant accounting policies and other explanatory information. The majority of the irregular expenditure was identified during my audit. In making those risk assessments. As disclosed in note 7 to the financial statements. NYDA incurred irregular expenditure of R133 252 000 (69% of total expenditure subject to supply chain management requirements) as a result of noncompliance with supply chain management prescripts as determined by the National Treasury. statement of changes in net assets and statement of cash flows for the year then ended. R161 323 000 (which includes the R24 859 000) had been impaired as the recoverability of these loans are doubtful.1 of 1999) (PFMA). 2004 (Act No.REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE NATIONAL YOUTH DEVELOPMENT AGENCY REPORT ON THE FINANCIAL STATEMENTS Introduction 1. My responsibility is to express an opinion on these financial statements based on my audit. The procedures selected depend on the auditor’s judgement. material impairments to the amount of R24 859 000 (2010-2011: R38 752 000) were incurred in the current year as a result of the impairment of loans advanced by the NYDA. 5. as well as evaluating the overall presentation of the financial statements. in all material respects. Opinion 6. but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. 25 of 2004) (PAA). I conducted my audit in accordance with the Public Audit Act of South Africa. My opinion is not modified in respect of these matters. whether due to fraud or error. I draw attention to the matters below. I have audited the financial statements of the National Youth Development Agency (NYDA) set out on pages 82 to 121 . As disclosed in note 31 to the financial statements. Material impairments 8. the financial position of the NYDA as at 31 March 2012 and its financial performance and cash flows for the year then ended in accordance with South African Standards of Generally Recognised Accounting Practice and the requirements of the PFMA. Emphasis of matters 7. whether due to fraud or error. Irregular expenditure 4. The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa. the auditor considers internal control relevant to the 76 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 Accounting authority’s responsibility for the financial statements 2. .

as required by Treasury Regulations 16A6. 12. The usefulness of information further relates to whether indicators and targets are measurable and relevant as required by the National Treasury Framework for managing programme performance information. resulting in the financial statements receiving an unqualified audit opinion.1.1. within the timeframes as required by Treasury Regulation 30. expenditure and irregular expenditure identified by the auditors in the submitted financial statements were subsequently corrected. revenue. liabilities. Budget 19. I performed procedures to obtain evidence that the NYDA has complied with applicable laws and regulations regarding financial matters. Proper control systems to safeguard and maintain assets were not implemented.1. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows: Procurement and contract management 20. The audit committee did not review the adequacy.Report on other legal and regulatory requirements 10. Material misstatements of non-current assets.2. I report the following findings relevant to performance against predetermined objectives. The annual report for the year under review did not include the audit committee’s comments on the effectiveness of internal controls as well as on their evaluation of the financial statements. Goods and services of a transaction value above R500 000 were procured without inviting competitive bids. Deviations were approved by the accounting authority even though it was not impractical to invite competitive bids. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury annual reporting principles and whether the reported performance is consistent with the planned objectives. performance and annual report 15. The financial statements submitted for auditing were not prepared in contravention of Treasury Regulation 16A6. Audit committee 18.1. as required by Treasury Regulation 27. as required by Treasury Regulation 16A6. reliability and accuracy of the financial information provided to management and other users.4. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability.8(d). financial management and other related matters. I performed procedures to obtain evidence about the usefulness and reliability of the information in the report on predetermined objectives of NYDA for the year ended 31 March 2012 as set out on pages 10 to 15 of the annual report.1. in all material respects in accordance with the requirements of section 55(1)(b) and 55(2)(a) of the PFMA. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 77 . In accordance with the PAA and the General Notice issued in terms thereof. The accounting authority did not submit quarterly reports on actual and projected revenue and expenditure to the accounting officer of the Presidency. current assets. The reliability of the information in respect of the selected objectives is assessed to determine whether it adequately reflects the facts. 16.10. as required by Treasury Regulation 27. Predetermined objectives 11. Annual financial statements. There were no material findings on the report on predetermined objectives concerning the usefulness and reliability of the information. compliance with laws and regulations and internal control. Compliance with laws and regulations 14. as required by sections 50(1)(a) and 51(1)(c) of the PFMA. Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations. 21. Asset management 17. but not for the purpose of expressing an opinion. 13.

The accounting authority did not take effective and appropriate steps to collect all money due. registered in terms of the National Credit Act (NCA) as a credit provider. if the allocated funds were not misappropriated and whether the relevant supply chain management prescripts was followed.1.1(d) and the Preferential Procurement Regulations. Compliance with the National Credit Act 29. Leadership 23. The matters reported below under NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 33. did not submit its annual report to the National Credit Regulator (NCR) by the deadline stipulated by the NCR. 30.3(b). I considered internal control relevant to my audit of the financial statements. as required by section 51(1)(b)(ii) of the PFMA.3. Pretoria 31 July 2012 78 . the report on predetermined objectives and compliance with laws and regulations. The NYDA did not reflect its registered status and registration number on all its credit agreements and communications with consumers as required by section 52(5)(b) of the NCA. 25.22. Expenditure management 26. Internal control 31.3(b) and the Preferential Procurement Regulations. The investigation remains ongoing at the reporting date. Inadequate monitoring by supervisors resulted in material misstatements in the financial statements. OTHER REPORTS Investigations 34. Contracts and quotations were awarded to bidders based on points given for criteria that differed from those stipulated in the original invitation for bidding and quotations. Effective and appropriate disciplinary steps were not taken against officials who incurred and/or permitted irregular expenditure and fruitless and wasteful expenditure. as required by section 51(1)(e)(iii) of the PFMA. 32. Revenue management 28. thus not complying with the requirements of section 52(5)(f) of the NCA. as required by section 51(1)(b)(i) of the PFMA and Treasury Regulations 31. An investigation is being conducted by the Public Protector to probe whether the hosting of the World Festival of Youth and Students held in December 2010 was within the NYDA’s mandate. Contracts and quotations were awarded to bidders who did not submit a declaration on whether they are employed by the state or connected to any person employed by the state. and non-compliance with laws and regulations. Financial and performance management 24.2(a) and 31. The leadership did not exercise adequate oversight responsibility regarding financial reporting and compliance with laws and regulations.1. The preference point system was not applied in all procurement of goods and services above R30 000 as required by section 2(a) of the Preferential Procurement Policy Framework Act and Treasury Regulations 16A6. in contravention of Treasury Regulations 16A6. Contracts and quotations were awarded to suppliers whose tax matters had not been declared by the South African Revenue Services to be in order as required by Treasury Regulations 16A9.2(e). 27. which is prescribed in order to comply with Treasury Regulation 16A8. The accounting authority did not take effective steps to prevent irregular expenditure and fruitless and wasteful expenditure. the fundamentals of internal control are limited to the significant deficiencies that resulted in the findings on compliance with laws and regulations included in this report. The NYDA.

The board is also in the process of developing a Corporate Governance Manual. mandate and operations of the NYDA The NYDA was established by the South African Government through the NYDA Act. In the performance report for the period under review. It is classified as a national public entity under Part A of Schedule 3 of the PFMA. to form the NYDA. and spheres of government. for the year 2011/2012. on 31 January 2012). The NYDA’s mandate is to advance youth development through: providing guidance and support to initiatives across sectors of society. The term of the other member. supported by the related charters. and guidelines to promote the highest standards of corporate governance within the NYDA. The Accounting Authority of the National Youth Development Agency (NYDA) is pleased to submit its report. in particular Section 21(2). Establishment. (a non-executive board member). these KPAs are used. which will provide a comprehensive set of governance and policy directives. The financial results and position of the NYDA for the period under review are set out on pages 82 to 121. Review of financial results and activities The review of the financial results and activities of the NYDA are contained in the reports of the Acting Accounting Authority. as articulated in the NYDA Act. made provision for the merger between the UYF and the NYC. 4. for the year ended 31 March 2012. Audit Committee The Audit Committee comprised of three members (a board member and two independent members). to embark on initiatives that seek to advance the economic development of young people between the ages of 14 and 35.Accounting Authority’s Report 1. Chief Executive Officer and annual financial statements. The two independent members of the Audit Committee resigned prior to the preparation of the statements (Mr Peter Koch resigned on 31 December 2011 and Mr Vonani Mathebula. The Audit Committee meets at least four times per annum. came to an end on 30 April 2012. The NYDA thus far and corporate governance The Accounting Authority established its governance structure. as stipulated by the NYDA Act. During the period under review. were of particular importance. This Act. the committee met four times. the board adopted seven key performance areas (KPAs). The appointment of the Chief Executive Officer and the constitution of its board committees. Ms Innocentia Motau. In line with the NYDA mandate. and to develop and coordinate the implementation of the Integrated Youth Development Plan and Strategy for the Republic of South Africa. Name of member Mr Vonani Mathebula (resigned January 2012) Ms Innocentia Motau (member of board) Mr Peter Koch (resigned December 2011) Number of meetings attended Four Three Three 2. according to its approved terms of reference. 3. which it believes adequately respond to the mandate of the NYDA. informed by the Protocol on Corporate Governance for the Public Sector and the King III Report on Corporate Governance. The salient results of youth-development funding are as follows: 31 March 2012 Disbursements Youth Development and Related Projects Project-related operating expenses Project Disbursements Investment in Small and Medium Enterprises Micro Finance Loans and Co-operatives Amounts Disbursed R’000 139 156 79 146 218 302 5 074 11 943 235 319 31 March 2011 R’000 132 291 67 445 199 736 2 022 4 984 206 742 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 79 . together with the NYDA’s annual financial statements. as amended.

be attached to each purchase. but deliberately defaulted. we are positive that this challenge will be overcome. At the time of making the assessment. This checklist also makes provision for a valid tax clearance certificate. The Acting Accounting Authority also acknowledges that there are some clients who genuinely cannot honour their commitments. after approval of the annual financial statements. decide on the supplier to be used to procure goods and services and also file the quotations and all other related documents received from the bidding process.3. new valid tax clearance certificates were not requested. due to the economic conditions.289 million from the NYDA to programme 1: Administration. In September 2011 the tender process began. These divisions did not necessarily follow the correct supply chain management prescripts during the competitive bidding process. The supply chain management unit was also re-capacitated to ensure compliance with all legislation. however over time their tax clearance certificates expired and when goods and services were procured from them by the various divisions within the NYDA.5. Irregular expenditure The Acting Accounting Authority also noted that significant irregular expenditure was incurred during the financial year under review. and is satisfied that the NYDA has adequate resources and measures in place to operate as a going concern in the next 12 months. as well as the decentralisation of procurement of goods and services. The Acting Accounting Authority also noted that certain clients had the resources to honour their commitments. The NYDA board upon receipt of the Auditor-General’s report for the 2010/11 financial year instructed management to initiate a tender process to appoint a service provider to render travel and accommodation services to the organisation. 80 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . the NYDA has adopted its viability as a going concern as basis for the preparation of these financial statements. the Acting Accounting Authority was not aware of any intention by government to either liquidate or curtail the operations of the NYDA in the next 12 months. which makes it difficult for young entrepreneurs to honour their current loan repayment commitments. This resulted in new repayment arrangements for paying off outstanding balances. were addressed by the centralisation of critical procurement roles to the supply chain management unit. Capitalisation and going concern Through the Medium Term Expenditure Framework process. The main contributor to the irregular expenditure has been the decentralisation of the procurement of goods and services to divisions with the supply chain management unit only playing an advisory role for the period 01 April 2011 to 31 October 2011.1(c) of Treasury Regulations. over the MTEF period. in terms of Section 6. therefore. and. the NYDA was capitalised by R385 million for the year ending 31 March 2012. This seriously impacted the delivery of services to young South Africans. unfortunately due to unforeseen challenges the process took longer than was anticipated to finalise. During the year under review. National Treasury approved the shifting of R1. The Acting Accounting Authority made an assessment of the NYDA’s ability to continue as a going concern. over the same MTEF period. The Acting Accounting Authority has already instructed management to implement the following corrective actions to prevent and monitor irregular expenditure: • Issues arising from the lack of proper record keeping. • The tender process for a travel and accommodation service provider resulted in the appointment of three service providers subsequent to financial year end. with R464 million requested for the financial year 2012/13. The other contributor was the procurement of goods and services from service providers who had been listed on the NYDA database earlier than the 2011/12 financial year. Furthermore. These service providers submitted valid tax clearance certificates at the time of being listed. and started taking legal action against such defaulters. During this period the respective divisions within the NYDA were responsible to source quotations directly from suppliers listed on the NYDA supplier database. • It is now also a requirement that a checklist. the NYDA was recapitalised through the 2012 Medium Term Expenditure Framework (MTEF) by R1.2 billion. Consequently. However. This is adequately disclosed in the notes to the annual financial statements. this resulted from the fact that no tender process was followed when the relationship between the NYDA and BCD Travel was concluded over 10 years ago. Significant matters Impairment of financial assets The Acting Accounting Authority also noted the significant amount allocated to the provision for impairment during the period under review. since government has continuously demonstrated its commitment to the youth and the NYDA. The other contributing factor to the irregular expenditure disclosed in the notes to the financial statements is the travel and accommodation expenses for the year.460 billion requested by the NYDA. with R376 million for the financial year 2012/13 This was against the R1. the authority provided additional support to some of these young entrepreneurs by granting them procurement opportunities within the NYDA. signed by the manager of the supply chain. 6. in November 2011. The key contributor to the increase is the current economic conditions.

7.

Board of Directors During the year under review and up to 30 April 2012, the members of the NYDA Board of Directors were as follows:
Executive Directors Mr Andile Lungisa Mr Yershen Pillay Non-executive Directors Mr Mcebo Khumalo Ms Maria Tshabalala Ms Innocentia Motau Mr François Slabber Ms Pholisa Makeleni Ex Officio Mr Steven Ngubeni Chief Executive Officer Chairperson of the Development Committee Member of the Credit and Investment Committee, and Development Committee Chairperson of the Credit and Investment Committee, and member of the Audit Committee Member of the Human Resource and Remuneration Committee Chairperson of the Human Resource and Remuneration Committee Executive Chairperson of both the board and the Executive Management Committee Executive Deputy Chairperson of the board and member of the Executive Management Committee

The Chief Executive Officer is an ex officio member of the board without voting rights. Remuneration of the board and senior management is set out in note 26. 8. Subsequent events

The Acting Accounting Authority is not aware of any matter or circumstance arising since 31 March 2012 and the date of this report, not dealt with in the annual financial statements, which would significantly affect the operations or results of the NYDA. Bankers Standard Bank of South Africa Limited Absa Bank Limited

9.

10. Auditors Auditor-General of South Africa 11. Company secretary Mr Neo Eugene Chuene The annual financial statements for the year ended 31 March 2012, as set out on pages 82 to 121, which were prepared on a going-concern basis, were approved by the Acting Accounting Authority and signed on its behalf by:

Mr Steven Ngubeni Acting Accounting Authority of the NYDA 31 July 2012 Johannesburg

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

81

ANNUAL FINANCIAL STATEMENTs
For the year ended 31 March 2012

Statement of Financial Position as at 31 march 2012
Note(s) Assets Current assets Receivables Cash and cash equivalents Loans receivable 2 3 7 15 116 99 147 11 317 125 580 Non-current assets Equipment Intangible assets Investments in associates Loans receivable Rental deposits Total assets Liabilities Current liabilities Finance lease obligation Trade and other payables from exchange transactions Employee cost accruals Deferred income 8 9 10 11 175 51 312 15 507 1 778 68 772 Non-current liabilities Finance lease obligation Total liabilities Net assets Net assets Reserves Accumulated reserves Surplus for the year 80 223 26 077 106 300 78 686 1 537 80 223 8 184 (68 956) 106 300 (47 445) 80 223 20 29 985 16 566 874 47 445 4 5 6 7 18 084 10 062 4 501 15 902 1 127 49 676 175 256 22 887 13 347 6 985 24 301 2 360 69 880 127 668 5 233 40 762 11 793 57 788 2012 R ‘000 2011 R ‘000

82

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

ANNUAL FINANCIAL STATEMENTs
For the year ended 31 March 2012

Statement of Financial Performance for the year ended 31 march 2012
Note(s) Revenue Revenue from exchange transactions Interest income Other income Fair value adjustments Bad debts recovered Gains on disposal of assets Revenue from non-exchange transactions Donor-funding income Grant income — Office of the Presidency Sponsorship for World Festival of Youth and Students (WFYS) 22 274 384 564 16 000 428 887 Expenses Operating expenses Donor-funding disbursements Interest paid Project disbursements Expenses for WFYS Surplus for the year 21 22 16 - 20 (182 850) (274) (41) (218 302) (1 343) (402 810) 26 077 (158 618) (3 321) (1 744) (199 736) (106 376) (469 795) 1 537 3 321 369 973 63 573 471 332 13 14 15 24 205 3 309 432 8 95 23 008 11 197 189 71 2012 R ‘000 2011 R ‘000

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

83

ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Statement of Changes in Net Assets for the year ended 31 march 2012 Accumulated Surplus R ‘000 Balance at 31 March 2010 Surplus for the year Balance at 31 March 2011 Surplus for the year Total changes Balance at 31 March 2012 78 686 1 537 80 223 26 077 26 077 106 300 Total net assets R ‘000 78 686 1 537 80 223 26 077 26 077 106 300 84 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Cash-flow Statement for the year ended 31 march 2012 2012 Note(s) Cash flow from operating activities Receipts Grants received Interest income Sponsorship for WFYS Other receipts Bad debts recovered Loan-capital repayments received 14 374 722 8 565 16 000 3 309 8 21 417 424 021 Payments Employee costs Suppliers Changes in working capital Loans disbursed Net cash flows from operating activities Cash flows from investing activities Purchase of equipment Proceeds from disposal of equipment Purchase of other intangible assets Distributions from investment in associates Net cash flows from investing activities Cash flows from financing activities Financing lease payments Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 3 (184) 58 385 40 762 99 147 (48) 16 391 24 371 40 762 5 24 (3 874) 178 (1 505) 2 916 (2 285) (2 240) 268 (2 813) 9 410 4 625 23 (151 666) (217 889) 23 405 (17 017) (363 167) 60 854 (133 655) (331 011) (1 431) (7 006) (473 103) 11 814 369 973 9 766 63 573 11 808 29 797 484 917 R ‘000 2011 R ‘000 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 85 .

and uncertainty at reporting date. are expected to have an insignificant impact on the financial statements. In circumstances where the NYDA makes a loan to an associate and such loan is impaired. The annual financial statements were prepared in accordance with the South African Standards of Generally Recognised Accounting Practice (GRAP). Assets. makes provision for the merger between the Umsobomvu Youth Fund (UYF) and the National Youth Commission (NYC). by a Standard of GRAP. have been early adopted: • GRAP 104 – Financial instruments 1. the investments are carried at cost. These annual financial statements have been prepared on the accrual basis of accounting and are in accordance with historical cost convention. and that entities may early adopt (par 11 of Directive 5). The NYDA uses discount rates of 20%–40% to discount estimated future cash flows. No. No. since they generally reflect the interpretations and principles already applied by NYDA. guidelines and directives issued by the Accounting Standards Board (ASB). which are not yet effective. It is classified as a National Public Entity under Part A of Schedule 3 of the Public Finance Management Act of South Africa. including any interpretations. to form the NYDA. which hold a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year. Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable. this will be regarded as an impairment indicator of the investment. 86 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Accounting Policies 1. willing parties in an arms-length transaction. • GRAP 21 – Impairment of non-cash-generating assets • GRAP 23 – Revenue from non-exchange transactions • GRAP 24 – Presentation of budget information in financial statements • GRAP 25 – Employee benefits • GRAP 26 – Impairments of cash-generating assets • GRAP 103 – Heritage assets • GRAP 105 – Transfer of functions between entities under common control The following approved Standards of GRAP. are discussed below: Financial assets and liabilities Management makes assumptions when determining the fair value of investments in associates. The NYDA uses the discounted free cash-flow valuation technique or net asset value as the primary basis of valuing investments in associates. unless otherwise specified. in particular Section 21(2). This Act. Standards not yet effective: Standards of GRAP approved. where an effective date was determined by the Minister of Finance.1 Significant estimates. as amended (PFMA). liabilities. revenues and expenses have not been offset. are not likely to significantly affect the value of items recognised in the annual financial statements when they are adopted. assumptions and judgments The key assumptions concerning the future and other key sources of estimations. except where offsetting is required. The NYDA’s functional currency is the South African Rand and the annual financial statements are presented in South African Rand. Where reliable information necessary for the application of the discounted free cash-flow valuation technique is not available. or permitted. 1 of 1999. The following GRAP statements have been approved but are not yet effective: • GRAP 106 – Transfer of functions between entities not under common control • GRAP 107 – Mergers Standards that have been early adopted: The following GRAP statements with effective dates applicable to future financial periods. 54 of 2008 (The NYDA Act). The NYDA does not have any financial instruments which are actively traded in the financial markets. Basis of preparation The NYDA was established by the South African Government through the National Youth Development Agency Act.

Any material adjustments to the estimated remaining useful life and residual value of assets will have an impact on the carrying value of those items. assumptions and judgments (continued) Determination of recoverable amount and impairment of non-financial assets Where impairment indicators exist. whereby two or more parties are committed to undertake an activity that is subject to joint control. it will be assessed as part of a cash-generating unit (CGU). are designated as at fair value through surplus or deficit. the NYDA assesses whether a financial asset is impaired.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 1. However. The NYDA has. the estimated future cash flows are discounted to their present value. the asset or CGU is considered impaired and is written down to its recoverable amount. Individual financial assets are reviewed for any indicators of impairment. Where the carrying amount of an asset or CGU exceeds its recoverable amount. without the establishment of a separate entity. as it invests in new companies. Equipment Depreciation and carrying value of equipment Residual values are determined with reference to the net realisable value obtained at the end of the asset’s useful life.1 Significant estimates. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 87 . therefore. this will be regarded as an impairment indicator of the investment. this is considered by management as objective evidence that an impairment loss has occurred.3 Joint ventures A joint venture is a binding arrangement. the investments are carried at cost. and these investments in associates. in its separate annual financial statements and. the NYDA assesses whether there is an indication that an asset may be impaired. consequently. Such requirement ensures that no single venturer is in a position to unilaterally control the activity. If any such indication exists. An asset’s recoverable amount is the higher of the asset’s fair value. the joint venture is referred to as a jointly controlled operation. Determination of recoverable amount and impairment of financial assets Where impairment indicators exist. On each reporting date. there may be other objective evidence. 1. The entity recognises. The NYDA uses discount rates of 20%–40% to discount estimated future cash flows. using a pre-tax discount rate that reflects current market assessments of time value of money and the risks specific to the asset. the determination of the recoverable amount of non-financial assets requires management to make assumptions to determine the recoverable amount. less costs to sell and its value in use. In circumstances where the NYDA makes a loan to an associate and such a loan is impaired. On each reporting date. rapidly growing companies that have the potential to develop into significant economic contributors and expanding companies that also create jobs in the economy. When an amount is outstanding in excess of 90 days. with a limited operating history. Jointly controlled operations Where the operation of a joint venture comprises the use of the venturer’s assets and other resources. 1. opted to elect the venture capital organisation exemption. which management considers when assessing a financial asset. the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate (the effective interest rate computed at initial recognition). The binding agreement establishes joint control over the joint venture. The NYDA invests in equity of the young. If there is objective evidence that an impairment loss on a financial asset has been incurred. Joint control is the agreed sharing of control over an activity by a binding arrangement. The NYDA meets the definition of the venture capital organisation. the determination of the recoverable amount of financial assets requires management to make assumptions to determine the recoverable amount. If the asset cannot be assessed individually. upon initial recognition. The NYDA uses the discounted free cash-flow valuation technique or net asset value as the primary basis for valuing investments in associates. in accordance with GRAP 104. in its annual financial statements: • The assets that it controlled and the liabilities that it incurred • The expense that it incurred and its share of the revenue that it earned from the sale or provision of the goods or services by the joint venture. Where reliable information necessary for the application of the discounted free cash flow valuation technique is not available. In assessing the value in use. either indicating or not indicating impairment. The estimation of useful lives and residual values of assets is based on management’s judgment. and is determined for an individual asset. These companies are too small to raise capital in the public markets and have not reached a point where they are able to secure a bank loan or complete debt offering.2 Investments in associates An associate is an entity in which NYDA has significant influence and which is neither a subsidiary nor a joint venture. the NYDA estimates the asset’s recoverable amount. Fair value adjustments are recognised through surplus or deficit. and exists only when the strategic financial and operational decisions relating to the activity require unanimous consent of the parties sharing control (the venturers).

the change(s) is accounted for as a change in accounting estimates. Where an item of equipment is acquired in exchange for non-monetary or monetary assets. Subsequent recognition of equipment Costs include costs incurred initially to acquire an item of equipment and costs incurred subsequently to add or replace the equipment or part thereof. At each reporting date. its costs shall be its fair value as at date of acquisition. If a replacement cost is recognised in the carrying amount of an item of equipment. at rates estimated to write each asset down to its estimated residual value over the term of its useful life. less accumulated depreciation and any accumulated impairment losses. An impairment loss is recognised in surplus or deficit and the depreciation charge relating to the asset is adjusted for future periods. Revenue from the sale or use of the entity’s share of the output of jointly controlled assets. the carrying amount of the replaced part is derecognised. The useful lives of items of equipment for the current and comparative period (except as indicated below): Item Furniture Motor vehicles Office equipment Computer hardware Leasehold improvements Useful life 5–10 years 4–6 years 5–10 years 3–5 years Over the shorter of its useful life or the remaining term of the lease The depreciation charge for each period is recognised in surplus or deficit. the controlling entity’s share of jointly controlled assets. all items of equipment are reviewed for any indication that they may be impaired. The residual value. 88 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . If the acquired item’s fair value is undetermined. Depreciation and impairment of equipment Equipment is depreciated over its expected useful life on a straight-line basis. Trade discounts and rebates are deducted in arriving at the cost. its deemed cost is the carrying amount of the asset given up. and any liabilities incurred jointly with other venturers.4 Equipment Definition of equipment Equipment is a tangible item that is held for use in the production or supply of goods and services. the asset acquired is initially measured at fair value (the cost).ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 1. Where an asset is acquired for no consideration. Impairment exists when an asset’s carrying amount is greater than its recoverable amount. or for nominal consideration. they are accounted for as separate items (major components) of equipment. Depreciation on equipment begins when the asset is available for use. The recoverable amount of an asset or CGU is the higher of its fair value less costs to sell and its value in use. and its share of joint-venture expense are recognised in surplus or deficit. is recognised in the statement of financial position of the entity and classified according to their nature. for rental to others or for administrative purposes and is expected to be used during more than one reporting period. useful life and depreciation of an asset are reviewed at least at each reporting date and. if expectations differ from previous estimates.3 Joint ventures (continued) Jointly controlled assets Where the entity undertakes its activities under a joint-venture arrangement directly. When significant components of an item of equipment have different useful lives or residual values. Equipment is carried at cost. Initial recognition of equipment The cost of an item of equipment is recognised as an asset when: • it is probable that future economic benefits or service potential associated with the item flow to the entity and • the cost of the item can be measured reliably. 1. If there is an indication of impairment. the asset’s recoverable amount is calculated. or a combination of non-monetary and monetary assets. Equipment is initially measured at cost The cost of an item of equipment is the purchase price and other costs attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management.

non-monetary asset without physical substance. asset or liability. Expenditure on research (or on the research phase of the internal project) is recognised as an expense when it is incurred. regardless of whether those rights are transferable or separable from the entity or from other rights and obligations. if any. If there was a change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset. The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at each reporting date. Initial recognition of intangible assets An intangible asset is recognised when: • it is probable that the expected future economic benefits or service potential attributable to the asset will flow to the entity. and Changes in Accounting Estimates and Errors. An intangible asset with a finite useful life is amortised and an intangible asset with an indefinite useful life is not. transferred.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 1. Intangible assets are initially measured at cost. There is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential.5 Intangible assets Definition of intangible assets An intangible asset is an identifiable. If the expected useful life of the asset is different from previous estimates. adequate. and the carrying amount of the item. rented or exchanged. 1. either individually or together with a related contract. or • arises from contractual rights (including rights arising from binding arrangements) or other legal rights (excluding rights granted by statute). in accordance with the standard GRAP on Accounting policies.4 Equipment (continued) De-recognition of equipment The carrying amount of an item of equipment is derecognised: • on disposal or • when no future economic benefits or service potential are expected from its use or disposal. Amortisation and impairment of intangible assets An intangible asset is regarded as having an indefinite useful life. The gain or loss arising from the derecognition of an item of equipment is included in surplus or deficit when the item is derecognised. financial and other resources to complete the development and to use or sell the intangible asset Expenditure during development can be measured. An asset is identified as an intangible asset when it: • Is separable. the amortisation method is changed to reflect the changed pattern. • • • • • • An intangible asset arising from development (or from the development phase of an internal project) is recognised when: It is technically feasible to complete the intangible asset so that it will be available for use or sale There is an intention to complete the intangible asset and use or sell it There is an ability to use or sell the intangible asset It will generate probable future economic benefits or service potential There are available. Subsequent measurement of intangible assets Intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. The gain or loss arising from the de-recognition of an item of equipment is determined as the difference between the net disposal proceeds. capable of being separated or divided from an entity and sold. licensed. Each change is accounted for as a change in accounting estimates. and • the cost or fair value of the asset can be reliably measured. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 89 . the amortisation period is changed accordingly. technical. based on an analysis of all the relevant factors. The cost of an intangible asset acquired for no consideration or for a nominal consideration shall be its fair value as at date of acquisition.

to the net carrying amount of the financial asset. The effective interest rate is the rate that exactly discounts estimated future cash receipts over the expected life of the financial instrument or. It is recognised in surplus or deficit when the asset is derecognised. or • when no future economic benefits or service potential are expected from its use or disposal. without directly giving approximate equal value in exchange. other than increases relating to contributions from owners. but does not consider future credit losses. on a straight-line basis. 90 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . The entity assesses the degree of certainty attached to the flow of future economic benefits or service potential on the basis of the available evidence. and • to the extent that there has been compliance with any restrictions associated with the grant. An announcement at the beginning of a financial year that grants may be available to qualifying entities. the NYDA estimates cash flows. Measurement Revenue is measured at the fair value of the consideration received or receivable.7 Revenue from non-exchange transactions Non-exchange transactions are transactions that are not exchange transactions. Impairment exists when an asset’s carrying amount is greater than its recoverable amount. if any. Government grants Government grants are recognised as revenue when: • it is probable that the economic benefits or service potential associated with the transaction will flow to the entity.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 1. using the effective interest rate method. The recoverable amount of an asset or CGU should be higher than its fair value less costs to sell and its value in use. Developed software is amortised when the software becomes available for use. an entity either receives value from another entity. 1. Interest Interest income is recognised in surplus or deficit for all financial instruments measured at amortised cost. When calculating the effective interest rate. without directly receiving approximate equal value in exchange. An impairment loss is recognised in surplus or deficit and the amortisation charge relating to the asset is adjusted for future periods. may not be sufficient evidence of the probability of the flow. At each reporting date. considering all contractual terms of the financial instruments. in accordance with an agreed programme. and the carrying amount of the asset. The gain or loss from the derecognition of an intangible asset is determined as the difference between the net disposal proceeds. If there is an indication of impairment. Derecognition of intangible assets Intangible assets are derecognised: • on disposal. or has liabilities extinguished. Certain grants payable by one level of government to another are subject to the availability of funds. Revenue is the gross inflow of economic benefits or service potential during the reporting period. the asset’s recoverable amount is calculated.6 Revenue from exchange transactions An exchange transaction is one in which the entity receives assets or services. all items of intangible assets are reviewed for any indication that they may be impaired. Revenue from these grants is only recognised when it is probable that the economic benefits or service potential associated with the transaction will flow to the entity. Amortisation of these assets is recognised in surplus or deficit. In a non-exchange transaction. when those inflows result in an increase in net assets. The effective interest rate method is a method of calculating the amortised cost of a financial asset and of allocating the interest income over the average expected life of the financial instruments.5 Intangible assets (continued) Amortisation is provided to write down the intangible assets. a shorter period. 1. to their residual values. Revenue is then only recognised once evidence of the probability of the flow becomes available. • the amount of the revenue can be measured reliably. where appropriate. or gives value to another entity. The NYDA amortises its intangible assets at a rate of 14%–20% per annum. and directly gives an approximate equal value to the other party in the exchange.

7 Revenue from non-exchange transactions (continued) Gifts and donations Gifts and donations are recognised as revenue when: • It is probable that the economic benefits or service potential associated with the transaction will flow to the entity. as per definition of GRAP. if this is practicable to determine. 1. If not.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 1. Finance leases – initial recognition At the commencement of the lease term. if it transfers substantially all the risks and rewards incidental to ownership. a reconciliation between the Statement of Financial Performance and the budget has been included in the annual financial statements.8 Leases A lease is classified as a finance lease. the NYDA recognises finance leases as assets and liabilities in its Statement of Financial Position. if it does not transfer substantially all the risks and rewards incidental to ownership. at amounts equal to the fair value of the leased assets or. fruitless and wasteful expenditure Irregular expenditure. Subsequent measurement Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term. the lessee’s incremental borrowing rate is used. Refer to note 32. Key management is defined as being individuals with the authority and responsibility for planning. 1. directing and controlling the activities of the entity. Contingent rents are charged as expenses in the periods in which they are incurred. Therefore. A lease is classified as an operating lease. only entities within the national sphere of government are considered to be related parties. 1968 (Act 86 of 1968) or any regulations made in terms of the Act Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided. the State Tender Board Act. Comparative information is not required. Operating leases Lease payments under an operating lease are recognised as an expense in surplus or deficit on a straight-line basis over the lease term. The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease. As a consequence of the constitutional independence of the three spheres of government in South Africa.11 Related parties The NYDA operates in an economic sector.10 Budget information The annual financial statements and the budget are not on the same basis of accounting. including: a. as defined in section 1 of the PFMA. Any initial direct costs of the lessee are added to the amount recognised as an asset. each determined at the inception of the lease. The PFMA. had reasonable care been exercised.9 Irregular. or b. Close family members of key management individuals. is expenditure other than unauthorised expenditure. so as to produce a constant periodic rate of interest on the remaining balance of the liability. unless another systematic basis is more representative of the time pattern of the user’s benefit. if lower. the present value of the minimum lease payments. We regard all members of the Operations Executive Committee reporting directly to the Chief Executive Officer as key management personnel. 1. 1. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 91 . incurred in contravention of or that is not in accordance with a requirement of any applicable legislation. • the amount of the revenue can be measured reliably. currently dominated by entities directly or indirectly owned or controlled by the South African government. in their dealings with the entity are also classified as related parties.

Any subsequent reversal of an impairment loss is recognised in surplus or deficit. Derecognition of financial instruments A financial asset is derecognised in the following circumstances: • If the rights to receive cash flows from the asset have expired • If the NYDA retains the right to receive cash flows from the asset. there may be other objective evidence that may or may not indicate impairment. Purchases or sales of financial assets that require delivery of assets within a timeframe established by regulation or conversion in the marketplace (regular way of purchases). the NYDA assesses whether a financial asset is impaired. The carrying amount of the financial asset is reduced through use of an allowance account. including cash on call Cash and cash equivalents. less any allowance for impairment. the previously recognised impairment loss is reversed.e. the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised. this is considered by management as objective evidence that an impairment loss has occurred. • Cash and cash equivalents. but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement • If the NYDA has transferred its right to receive cash flows from the asset and has either transferred substantially all the risks and rewards of the asset. when the asset is considered irrecoverable. or has neither transferred nor retained substantially all the risks and rewards of the asset. highly liquid investments that are readily convertible into known amounts of cash. 92 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . in the case of financial assets and financial liabilities not recorded at fair value through surplus or deficit. any directly attributable incremental costs of acquisition or issue. an instrument is classified as either a financial asset or a financial liability and recorded at fair value plus. receivables are carried at the original invoice amount. to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date. but has transferred control of the asset. in a subsequent period. Trade payables are derecognised when the obligation under the liability has been discharged. using the effective interest rate method. • Investment in associates Refer to note 1. are subsequently measured at amortised cost. All changes in fair value are recognised directly in surplus or deficit. Subsequent measurement Subsequent measurement of financial instruments carried on the Statement of Financial Position is on the following basis: • Investments Investments in equity instruments are designated as at fair value through surplus and deficit. Cash and cash equivalents. • Loans receivable Loans receivable are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. including cash on call comprise of demand deposits and short-term.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 1. the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate (the effective interest rate computed at initial recognition). If.2 Impairment of financial assets Assets carried at amortised cost At each reporting date. Gains and losses are recognised through surplus and deficit when the loans receivables are derecognised or impaired. using the effective interest rate method. including cash on call. are recognised on the trade date. using the effective interest method. the date that the NYDA commits to purchase or sell the asset.12 Financial instruments Initial recognition and measurement On initial recognition. Management considers such objective evidence when assessing a financial asset. • Rental deposits Rental deposits include all monies paid by the NYDA as deposits for the rental of the buildings. i. The amount of the loss is recognised through surplus or deficit. • Trade and other payables from exchange transactions Trade payables are initially recognised and carried at fair value and. as well as interest through the amortisation process. subsequently measured at amortised cost. less any allowance for impairment. However. Individual financial assets are reviewed for any indicators of impairment. Where the impact of discounting is not material. Such assets are carried at amortised cost. When an amount is outstanding for longer than 90 days. when there is objective evidence that the asset may be impaired directly and against carrying value of an asset. • Receivables Receivables are initially recognised at fair value and subsequently measured at amortised cost. If there is objective evidence that an impairment loss on a financial asset has been incurred.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled.15 Commitments Where a project has been approved. Where contributions to a defined contribution plan do not fall due wholly within 12 months after the end of the period in which the employees render the related service. it is disclosed as commitments in the notes to the annual financial statements.13 Employee benefits Short-term employee benefits The cost of short-term employee benefits (those payable within 12 months after the service is rendered. such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. 1. but has not been accrued for. if the fund does not hold sufficient assets to pay all employees the benefits relating to services in the current or prior periods. Contributions are recognised in surplus or deficit in the period in which the service is rendered by the relevant employees.12 Financial instruments (continued) Derecognition of financial instruments (continued) Where the NYDA has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of the existing liability are substantially modified.16 Deferred income Deferred income represents revenues collected. The entity’s contributions to the defined contribution funds are established in terms of the rules governing those plans. and the difference in the respective carrying amounts is recognised through surplus or deficit. such as medical care). using a risk-free rate. • Project-related operating expenses are direct and indirect support costs related to programmes and projects. implement. they are discounted. using its own capacity. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the NYDA could be required to repay. 1. 1. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 93 . and manage youth development projects. 1. as at reporting date.14 Project disbursements Disbursements to projects are categorised and disclosed as follows: • Project disbursements are approved grant funding made to third-party service providers. This includes grants from foreign institutions. who plan. managed internally by the NYDA. unless the standard requires or permits the inclusion of the contribution in the cost of an asset.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 1. or provided for. or it expires. nor transferred control of the asset. as well as payments relating to youth development projects. but not earned. are recognised in the period in which the service is rendered. The entity has no legal or constructive obligation to pay further contributions. determined by reference to market yields at the reporting date on government bonds or by reference to market yields on high-quality corporate bonds. the asset is recognised to the extent of the NYDA’s continuing involvement of the asset. bonuses and non-monetary benefits. Prepaid contributions are recognised as an asset to the extent that a cash refund or reduction in future payments is available. Defined contribution plans A defined contribution plan is a plan under which the entity pays fixed contributions into a separate entity. Liabilities for short-term employee benefits which are unpaid at year-end are measured at the undiscounted amount that the entity expects to pay in exchange for that service and had accumulated at the reporting date. such as paid vacation leave and sick leave.

8 million. in respect of the shortfall on grant income from the Office of the Presidency • Amounts of R1.5 million receivable from the FNB Progress Fund • Amounts of R611 000 receivable from the Flemish Government Receivables allowance for impairment reconciliation 2012 Allowance for impairment 2011 R’000 Allowance for impairment (287) (287) Receivables allowance for impairment reconciliation 2011 Allowance for impairment 2010 R’000 Allowance for impairment (94) (94) Impairment expense R’000 (193) (193) Allowance for impairment 2011 R’000 (287) (287) Impairment expense R’000 (679) (679) Allowance for impairment 2012 R’000 (966) (966) The NYDA’s receivables do not exceed a maturity period of 12 months. Interest on staff loans is charged at the NYDA’s overdraft rate.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the Annual Financial Statements 2. with a maximum term of six months. Receivables 2012 R ‘000 Staff loans Sundry debtors Interest receivable banks Prepaid expenses Less: Allowance for impairment 613 13 355 594 1 520 16 082 (966) 15 116 2011 R ‘000 7 4 692 205 616 5 520 (287) 5 233 Sundry debtors include: • A debtor was raised to the value of R9. Therefore. the carrying amount is considered to be a reasonable approximation of the fair value. 94 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

where the NYDA is in partnership with third parties. 4. Therefore.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 3. such funds are restricted and cannot be used for any purpose other than the purpose as stipulated in the partnership agreement. Equipment 2012 Accumulated depreciation and Cost R’000 Furniture Motor vehicles Office equipment Computer hardware Leasehold improvements Total 76 259 (58 175) 18 084 73 169 (50 282) 22 887 17 372 1 797 7 489 18 485 31 116 impairment losses R’000 (11 305) (1 436) (4 665) (13 264) (27 505) Carrying value R’000 6 067 361 2 824 5 221 3 611 Cost R’000 17 025 1 797 7 077 17 069 30 201 2011 Accumulated depreciation and impairment losses R’000 (10 274) (1 362) (4 373) (10 751) (23 522) Carrying value R’000 6 751 435 2 704 6 318 6 679 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 95 . on behalf of the NYDA. in favour of the Department of Public Works. for the amount of R2.1 million. Cash and cash equivalents 2012 R ‘000 2011 R ‘000 Cash and cash equivalents consist of: Cash on call Cash at bank and on hand Unrestricted cash Free State Development Corporation Business Partners (Pty) Ltd NYDA/MTN Enterprise Development CIPC Massmart Holdings Limited Belgium donor funding Restricted cash Cash and cash equivalents – 91 343 91 343 5 556 1 222 – 323 103 600 7 804 99 147 3 31 252 31 255 5 451 1 175 1 541 – 466 874 9 507 40 762 Restricted cash represents funds earmarked for specific projects. Guarantees Absa Bank Limited has issued rental guarantees.

Equipment (continued) Reconciliation of equipment – 2012 Opening balance R’000 Furniture Motor vehicles Office equipment Computer hardware Leasehold improvements 6 751 435 2 704 6 318 6 679 22 887 Reconciliation of equipment – 2011 Opening balance R’000 Furniture Motor vehicles Office equipment Computer hardware Leasehold improvements 8 984 606 3 316 6 519 11 823 31 248 Equipment fully depreciated and still in use (Cost) 2012 R’000 Furniture Motor vehicles Office equipment Computer Equipment Leasehold improvements 3 901 1 355 1 432 5 475 – 12 163 2011 R’000 3 871 1 360 1 386 809 2 977 10 403 Additions R’000 – – 124 1 972 144 2 240 Disposals R’000 (36) – (3) (158) (197) Depreciation R’000 (2 099) (171) (732) (2 015) (5 288) (10 305) Impairment loss (98) – (1) – (99) Total R’000 6 751 435 2 704 6 318 6 679 22 887 Additions R’000 453 – 704 1 619 1 620 4 396 Disposals R’000 (5) – (13) (94) (4) (116) Depreciation R’000 (716) (74) (457) (2 197) (4 684) (8 128) Impairment loss R’000 (416) – (114) (425) – (955) Total R’000 6 067 361 2 824 5 221 3 611 18 084 The carrying value of office equipment includes an amount of R335 000 (2011: R20 000) relating to a finance lease for printers and copiers. In terms of the finance lease contract. 96 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . ownership does not pass to the NYDA at the end of the lease term and.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 4. the NYDA is not entitled to sell or dispose of these photocopiers or printers. therefore.

ANNUAL FINANCIAL STATEMENTs
For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012

5.

Intangible assets
2012 Accumulated amortisation and Cost R’000 impairment loss R’000 (5 318) (4 918) – (10 236) Carrying value R’000 1 065 1 256 7 741 10 062 Cost R’000 9 492 6 069 6 341 21 902 2011 Accumulated amortisation and impairment loss R’000 (4 147) (4 408) – (8 555) Carrying value R’000 5 345 1 661 6 341 13 347

Software developed in-house Computer software purchased Software under development Total Reconciliation of intangible assets — 2012

6 383 6 174 7 741 20 298

Opening balance R’000 Software developed in-house Computer software purchased Software under development 5 345 1 661 6 341 13 347 Reconciliation of intangible assets — 2011 Opening balance Software developed in-house Computer software purchased Software under development 3 863 2 179 6 159 12 201 Additions 2 599 32 2 703 5 334 Transfers – – (2 521) (2 521)

Additions R’000 – 105 1 400 1 505

Amortisation R’000 (4 280) (510) – (4 790)

Total R’000 1 065 1 256 7 741 10 062

Amortisation (1 075) (550) – (1 625)

Impairment loss (42) – – (42)

Total 5 345 1 661 6 341 13 347

Commitments for software under development to the value of R4,6 million, relating to the customer relations management system exist.
Intangible assets fully amortised and still in use (cost) 2012 R’000 Intangible assets 3 669 2011 R’000 1 160

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

97

ANNUAL FINANCIAL STATEMENTs
For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012

6.

Investments in associates
Investment at cost Nature of 2012 Shareholding 80% 26% 26% 10% 10% 19% 10% 19% 19% 19% R’000 100 000 300 – – – – 1 000 – – – 101 300 Investment at cost 2011 R’000 100 000 300 – – – – 1 000 – – – 101 300

Name of entity Franchise Fund Chicken Kwasa (Pty) Ltd Serokolo Health Solutions (Pty) Ltd Soundrite Sound (Pty) Ltd K5 Transport Logistics (Pty) Ltd Decti Rating (Pty) Ltd Vynide Investments (Pty) Ltd Mafatafata Printing (Pty) Ltd Sword South Africa (Pty) Ltd E2 BA-LE2 (Pty) Ltd

Enterprise Private equity investment Fast food Medical healthcare Entertainment Airline charter BEE rating agency Manufacturing Printing Manufacturing Manufacturing

In respect of the above investments, in which the NYDA has less than 20% shareholding, the NYDA has significant influence by virtue of having representation on the Board of Directors and also having a right to participate in the policy-making process, including participation in decision-making about dividends and other distributions. All the above associates have been incorporated in the Republic of South Africa. The cost of investments and fair value adjustments less than R1000 have been shown as nil. Based on the contractual agreement with Business Partners (Pty) Ltd, the NYDA contributes 80% of the funding for Franchise Fund loans. However, the NYDA only exercises significant influence and does not participate in the management of the fund. Therefore, it is classified as an investment in associate.
Summarised Franchise Fund 2012 R ‘000 Opening carrying amount Repayment received during the year Fair value adjustment Carrying value at end of year Other investments in small and medium enterprises Opening carrying amount Fair value adjustment Carrying value at end of year Due within more than one year – – – 4 501 4 501 468 (468) – 6 985 6 985 6 985 (2 916) 432 4 501 2011 R ‘000 15 739 (9 410) 656 6 985

The NYDA has an ongoing investment with FNB that has a maturity of more than a year.

98

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

ANNUAL FINANCIAL STATEMENTs
For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012

Accumulated fair value Repayment received 2012 R’000 (100 000) – – – – – – – – – (100 000) Repayment received 2011 R’000 (100 000) – – – – – – – – – (100 000) adjustments 2012 R’000 4 501 (300) – – – – (1 000) – – – 3 201

Accumulated fair value adjustments 2011 R’000 6 985 (300) – – – – (1 000) – – – 5 685 Carrying amount 2012 R’000 4 501 – – – – – – – – – 4 501 Carrying amount 2011 R’000 6 985 – – – – – – – – – 6 985

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012

99

ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 7. which is less than the maximum rate permissible by the National Credit Act. Loans receivable 2012 R’000 2011 R’000 239 609 84 827 2 421 326 857 34 880 (2 746) (180 531) 178 460 (142 366) (113 844) (26 931) (1 591) 36 094 11 793 24 301 36 094 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 Due within one year Due within more than one year 244 683 92 000 7 191 343 874 50 131 (3 515) (201 948) 188 542 (161 323) (119 811) (34 884) (6 628) 27 219 11 317 15 902 27 219 *Micro finance direct lending attracts fixed and variable interest. 2005 (Act 34 of 2005). Loans receivable impairment reconciliation 2012 Allowance of impairment 2011 R’000 Small and medium enterprises Microloans direct lending and intermediaries Co-operatives 113 844 26 931 1 591 142 366 Loans receivable impairment reconciliation 2011 Allowance of impairment 2010 R’000 Small and medium enterprises Micro loans direct lending and intermediaries Co-operatives 91 563 21 017 1 478 114 058 Impairment expense R’000 32 726 5 914 113 38 753 Loans written off R’000 (10 445) – – (10 445) Allowance of impairment 2011 R’000 113 844 26 931 1 591 142 366 Impairment reversal R’000 (5 902) – – (5 902) Impairment expense R’000 11 869 7 953 5 037 24 859 Allowance of impairment 2012 R’000 119 811 34 884 6 628 161 323 100 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

as shown on the bank statements and/or management accounts. Range of interest rates Small and medium enterprises Microfinance direct lending and intermediaries Co-operatives % 7–19 14–24 4–12. Ownership of these machines will not pass to the NYDA at the end of the lease term. the NYDA considered the following factors over and above the amount in excess of 90 days: • Whether the borrower was trading or not • The age of the debt • Progress of attorneys in recovering the debt and their opinion on recoverability • The reliance of the borrower on a few customers and the loss of this customer base • The cash flows of the business.5 All interest rates are linked to prime. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 101 . Finance lease obligation 2012 R’000 Minimum lease payments due — Within one year — In second to fifth year inclusive Less: future finance charges Present value of minimum lease payments Present value of minimum lease payments due — Within one year — In second to fifth year inclusive 175 184 359 Non-current liabilities Current liabilities 184 175 359 20 – 20 – 20 20 205 195 400 (41) 359 20 – 20 – 20 2011 R’000 The NYDA leased photocopiers and printers from Konica Minolta for a period ranging from 31 to 36 months. the spread of the loans receivable impairment is as follows: 2012 R’000 Less than 30 days Less than 60 days Less than 90 days More than 90 days 1 414 812 80 159 017 161 323 In assessing its loan book for any indicators of impairment. 8.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 In the impairment reconciliation. with monthly payments of R17 000. payable in arrears with no residual value.

and the leave pay provision is expected to be utilised as and when an employee takes leave or resigns. Prince’s Youth Business International provided funding for the development of an e-mentoring system. 102 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . 10. Trade and other payables from exchange transactions 2012 R’000 2011 R’000 13 904 16 081 29 985 Trade payables Trade accruals 30 770 20 542 51 312 The NYDA’s trade payables generally do not exceed a maturity of two months and the fair value is considered to be a reasonable approximation of the carrying value. Deferred income 2012 R’000 Flemish government — donor funding Prince’s Youth Business International Front end fees 1 248 333 197 1 778 2011 R’000 874 – – 874 Deferred income relates to a conditional grant received from the Flemish government for the funding of the NYDA’s Civil Society Support Programme. Employee cost accruals Reconciliation of employee cost accruals — 2012 Opening Balance R’000 Leave pay Staff bonuses 7 998 8 568 16 566 Reconciliation of employee cost accruals — 2011 Opening Balance R’000 Leave pay Staff bonuses 7 147 16 678 23 825 Additions R’000 7 876 8 433 16 309 Utilised during the year R’000 (7 025) (16 543) (23 568) Total R’000 7 998 8 568 16 566 Additions R’000 3 911 7 288 11 199 Utilised during the year R’000 (3 899) (8 359) (12 258) Total R’000 8 010 7 497 15 507 Staff bonuses were paid during the third quarter of the new financial year.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 9. 11.

which include interest rate and portfolio risks. Financial assets as Financial assets at amortised cost 2011 Assets Loans receivable Short-term portion of loans receivable Rental deposits Investment in associates Receivables Cash and cash equivalents 24 301 11 793 2 360 – 4 617 40 762 83 833 Liabilities Finance lease obligation Trade and other amounts payable from exchange transactions – – – – – – 20 29 985 30 005 20 29 985 30 005 – – – 6 985 – – 6 985 – – – – – – – 24 301 11 793 2 360 6 985 4 617 40 762 90 818 R’000 at fair value through surplus and deficit R’000 Financial liabilities at amortised cost R’000 Total R’000 The primary risks associated with the financial instruments held by the NYDA are credit. liquidity and market risk. Financial assets as Financial assets at amortised cost 2012 Assets Loans receivable Short-term portion of loans receivable Rental deposits Investment in associates Receivables Cash and cash equivalents 15 902 11 317 1 127 – 15 116 99 147 142 609 Liabilities Finance lease obligation Trade and other amounts payable from exchange transactions – – – – – – 359 51 312 51 671 359 51 312 51 671 – – – 4 501 – – 4 501 – – – – – – – 15 902 11 317 1 127 4 501 15 116 99 147 147 110 R’000 at fair value through surplus and deficit R’000 Financial liabilities at amortised cost R’000 Total R’000 The classification of financial instruments held by the NYDA at 31 March 2011. Financial instruments The classification of financial instruments held by the NYDA at 31 March 2012.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 12. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 103 .

The objective of credit risk management is to minimise financial losses that may arise as a result of third parties failing to discharge their obligations. the viability of the enterprise is considered and various other indications are established and verified. Financial instruments (continued) Credit risk One of the NYDA’s core business activities is to invest in small and medium enterprises.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 12. Maximum exposure During the period that the NYDA has exposure to a borrower or investee company. which have a minimum rating of AAA. The credit risk at the investment stage of any potential investment is researched and assessed by means of a due diligence process. Consequently. It comprises the following key elements: • Approval process • Cash flow based lending methodology • Attaching protective covenants to funding arrangements • Collections policies and procedures • Delinquency management • Monitoring • Mentorship There have been no changes in the exposure or the policy used to manage credit risk. The NYDA places its cash reserves with the South African Reserve Bank and local financial institutions. the agency is exposed to credit risk. Changes in credit exposure and the maximum credit exposure for all financial assets are detailed in the table below: 2012 Loans receivable Microloans direct lending and intermediaries Small and medium enterprises Co-operatives R’000 3 010 24 180 29 27 219 Investment in associates Receivables Cash and cash equivalents Rental deposits 4 501 15 116 99 147 1 127 119 891 Total 147 110 2011 R’000 6 785 29 309 – 36 094 6 985 5 233 40 762 2 360 55 340 91 434 104 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . which refers to the risk that loans made to third parties will not be repaid. the agency conducts an ongoing evaluation of the business and does not provide loans to any single entity in excess of R5 million. In addition. where the entrepreneur is evaluated. the NYDA has implemented a credit policy which assists in managing credit risk.

in respect of loans. Therefore. Neither past due nor impaired 2012 Loans receivable Receivable Investment in associates Cash and cash equivalents Rental deposits R’000 22 315 – 4 501 99 147 1 127 127 090 Neither past due nor impaired 2011 Loans receivable Receivable Investment in associates Cash and cash equivalents Rental deposits R’000 28 618 – 6 985 40 762 2 360 78 725 Loans past due date but not impaired (loans renegotiated) Value in arrears for 01–30 days R’000 223 – – – – 223 Value in arrears for 01–30 days R’000 4 069 – – – – 4 069 Value in arrears for 31–60 days R’000 545 – – – – 545 Value in arrears for 31–60 days R’000 317 – – – – 317 Value in arrears for 61–90 days R’000 257 – – – – 257 Value in arrears for 61–90 days R’000 13 – – – – 13 Value in arrears for > 90 days R’000 3 878 15 116 – – – 18 994 Value in arrears for > 90 days R’000 3 077 5 233 – – – 8 310 Total R’000 36 094 5 233 6 985 40 762 2 360 91 434 Total R’000 27 218 15 116 4 501 99 147 1 127 147 109 During the year under review no loans were renegotiated. During the year under review. the NYDA did not take possession of any collateral. an application for recapitalisation is made to its Executive Authority and National Treasury On a quarterly basis. or cancelled commitments and undrawn commitments A distinction is made between encumbered and unencumbered cash resources of the NYDA Three-year projections of cash flow. For loans of less than R100 000. the strategic plan and budget are reviewed by a committee comprised of divisional heads. and the ability of the borrower to absorb and service debt. new commitments. One of the cornerstones of the lending practice adopted is consideration of the certainty of cash flows. Financial instruments (continued) Collateral and other credit enhancement on loans receivable The nature of the NYDA’s target market is black youth who have not accumulated assets which are significant. in order to keep a healthy liquidity position. in relation to the loans advanced to them. the Chief Financial Officer and the Chief Executive Officer Once a commitment has been made. the value of tangible security offered is not adequate. The surety must be in salaried employment with no record of defaulting on loans. The NYDA has the following mechanisms in place to ensure that it has the funds available to meet its commitments: • A strategic plan and a three-year budget are prepared and approved by the Board of Directors. the NYDA keeps record of all gross commitments and drawn-down commitments. as and when they fall due. prior to the start of the financial year • • • • • At half-year. The funding provided to small and medium enterprises are usually characterised by fixed maturities of up to five years. scheduled repayments and a limited moratorium on capital repayments and interest. the NYDA conducts a revision of its annual budget and reassesses its liquidity needs.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 12. Liquidity risk Liquidity risk refers to the risk that the NYDA will not be able to meet its funding commitments and other financial obligations. The NYDA adopted a conservative cash-flow management policy to manage the risk of investments made in instruments which are not readily realisable. a third party stands as surety and co-principal debtor for a portion (10% to 50%) of the loan. cancelled commitments and undrawn commitments carried forward are prepared NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 105 . undrawn commitments brought forward. In addition. There is no collateral held for other classes of financial assets. The NYDA does not take possession of collateral for use in its own operations.

other financial assets are very liquid and not subject to any notice periods for draw down. based on individual project needs Finance provided to small enterprises is usually in the form of self-liquidating financial instruments with minimal funds tied in equity investments. Debts arising in the ordinary course of business are normally settled over a period of not more than two months from date of invoice. The NYDA’s exposure to illiquid assets is comprised of investments in unlisted entities and restricted cash flows. Except for loans due from small businesses and restricted cash. Financial instruments (continued) Liquidity risk (continued) • • Disbursements on commitments are made in several tranches. Its short-term liabilities are mainly comprised of debts arising in the ordinary course of business and commitments to making grants for the implementation of National Youth Service and Skills Development projects. The balance of the loans receivable. Expected maturity dates: financial assets The NYDA’s financial assets comprise mainly cash in current accounts with local financial institutions and loans due from small businesses.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 12. outstanding as at 31 March 2012. highly liquid investments and ensuring that the maturities of financial assets match those of its financial liabilities. Grant commitments are usually made over a period of 12 to 18 months and finance leases over a period of 31 to 36 months. The NYDA manages its liquidity risk by placing funds in short-term. is scheduled to be repaid as follows: 2012 R’000 Maturity period Due within the next 12 months Due thereafter Total value of loans 11 317 15 902 27 219 11 793 24 301 36 094 Due later than one Due immediately or within one month 2012 Receivables Cash and other cash equivalents Total current assets Trade and other payables from exchange transactions Finance lease obligation Total liabilities Net liquidity of continuing operations R’000 – 99 147 99 147 – – – 99 147 month but not later than twelve months R’000 15 116 – 15 116 (51 312) (175) (51 487) (36 371) Due later than twelve months R’000 – – – – (184) (184) (184) Total R’000 15 116 99 147 114 263 (51 312) (359) (51 671) 62 592 2011 R’000 106 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . Expected maturity dates: financial liabilities The NYDA does not have any long-term borrowings. This accounts for less than 3% of the carrying value of financial assets.

5 million (2011: R1. If interest rates had been 200 basis points lower. income and accumulated reserves would have increased accordingly. with all other variables held constant. interest rate risk and other price risk (which are factors other than currency and interest rate risk that may influence the fair value of a financial asset). with all other variables held constant.5 million).ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 12. The change would have occurred because of variable rate interest that the NYDA earns from its financial assets. Financial instruments (continued) Due later than one Due immediately or within one month month but not later than twelve months R ‘000 5 233 – 5 233 (29 985) (20) (30 005) (24 772) Due later than twelve months R ‘000 – – – – – – – Total R’000 5 233 40 762 45 995 (29 985) (20) (30 005) 15 990 2011 Receivables Cash and other cash equivalents Total current assets Trade and other payables from exchange transactions Finance lease obligation Total current liabilities Net liquidity of continuing operations R’000 – 40 762 40 762 – – – 40 762 Market risk Market risk is defined as the risk that the fair value of future cash flows of a financial instrument will fluctuate. interest income would have increased by approximately R2. The NYDA is not directly exposed to currency risk. if interest rates had been 200 basis points higher. Sensitivity analysis At 31 March 2012. Consequently. not all its loans granted are variable rate loans. interest income would have decreased by approximately R2. Hence. The NYDA’s exposure to interest rate risk is as follows: 2012 R’000 Small and medium enterprises Microloans direct lending and intermediaries Co-operatives Cash and cash equivalents 24 180 3 010 29 99 147 126 366 2011 R’000 29 309 6 785 – 40 762 76 856 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 107 .5 million). The entity is primarily exposed to interest rate risk. because of changes in market prices.5 million (2011: R1. as it does not often enter into foreign currency transactions. as most of the financial assets’ returns are linked to the prime rate. which include cash and loans. Its objective is to ensure that it minimises losses of interest income. income and accumulated reserves would have decreased accordingly. Consequently. and includes currency risk. to invest in other financial assets bearing interest at a fixed rate. Interest rate risk Changes in interest rates will affect the revenue stream of the NYDA. as a result of utilising cash which attracts interest at a variable rate. There have been no changes in the exposure or the policy used to manage market risk.

using the discounted cash-flow method and net asset-value method. at meetings of the steering committee. The portfolio allocation is reviewed on a quarterly basis. either directly (as prices) or indirectly (derived from prices). Financial instruments (continued) Fair values Fair value hierarchy of financial assets ‘at fair value through surplus or deficit’ The NYDA measures fair values. The risk is managed through the steering committee. which are observable for the financial assets. which sets limits of exposure to the various industries.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 12. which are not based on the observable market data. Portfolio risk Portfolio risk arises as a result of loans and advances being concentrated in any particular industry. Level 2: Inputs other than quoted prices included in Level 1. location or stage of development. No transfers between fair value hierarchy levels took place during the current year. using the following fair value hierarchy that reflects the significance of the inputs used in making measurement: Level 1: Quoted market prices (unadjusted) in active markets for identical assets. The carrying amount of financial assets and liabilities approximates their fair value. Below is a schedule of advances made to small. medium and micro enterprises in different sectors: 2012 % Industry Building and construction Manufacturing Printing Retail Services Agriculture Transport Hospitality and Leisure Health 4 5 1 19 61 – 8 1 1 100 108 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 2011 % 7 12 2 16 47 1 8 7 – 100 . 2012 R’000 Investment in associates Level 1 Level 2 Level 3 Gains and Losses Level 1 Level 2 Level 3 – – 432 – – 189 – – 4 501 – – 6 985 2011 R’000 Investment in associates is measured. Level 3: Inputs which are not based on observable market data. The NYDA recognises that it may face the risk of overexposing itself in certain situations and considers the following in determining concentration: • Overconcentration of loans to a particular industry • Overconcentration of loans to businesses controlled by common shareholders or grants to a single service provider • Overconcentration of funding in illiquid equity investments.

Auditors’ remuneration External audit fees Internal audit fees 3 582 4 869 8 451 4 145 1 408 5 553 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 109 . by the Credit Risk and Investment Committee. Financial instruments (continued) Overexposure to a small number of counterparties In terms of the credit policy relating to loans. Interest income 3 693 20 512 1 806 21 202 Cash and cash equivalents Loans receivable 24 205 14. on a monthly basis. The NYDA continuously keeps record of reserves which are encumbered and restricted. Individual companies and shareholders. The NYDA tracks loan and grant approvals.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 12. in order to provide a basis for anticipating capital calls. in order to avoid deficits arising from the over-commitment of funds. and between R10 million and R20 million. to meet forecasted monthly cash outflows with the residual being maintained on call accounts. no entity. until November 2011). in which more than 25% of the issued shares are held by an existing shareholder of a borrowing company. with exposure of less than R5 million. Capital management The NYDA considers the annual government grant it receives as its capital and obtains its capital by making annual applications to the National Treasury. commitments and undrawn commitments on a continuous basis. which allows for monitoring. is entitled to loans in aggregate exceeding R20 million and not more than R5 million for a single entity. by the Board of Directors. Other income Sponsorship income Gain on settlement of liability Other Repayment from Masisizane Skills development levy refund Progress fund liability write-off 400 – 633 1 775 231 270 3 309 23 008 1 226 6 436 3 535 – – – 11 197 15. notwithstanding that it has an expectation that the National Treasury will recapitalise the NYDA on an annual basis. The funds which are received are held in money market instruments with local financial institutions which have a minimum AAA rating. between R5 million and R10 million. Fair value adjustments Fair value adjustments to investments in associates 432 189 16. capital expenditure and draw-down requests. 2012 R’000 2011 R’000 13. The NYDA makes commitments from its existing capital base. are approved by the Loans Approval and Review Committee (Enterprise Finance Management Committee. The NYDA conducts rolling forecasts to anticipate its cash requirements to meet operating expenses. The NYDA has a formalised budgeting and forecasting process in place. It maintains cash on demand. in respect of commitments made regarding grants and loans. of the cash reserves and commitments of the fund.

NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 110 .ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 2012 R’000 2011 R’000 17. The recoverable amount of all equipment impaired was assessed to be zero and. An impairment loss is recognised when the carrying amount of the asset is more than its recoverable amount. Employee-related costs Salaries and allowances Defined contribution plan Termination benefits Total employee cost Less: amounts included in project disbursements 142 167 8 218 222 150 607 (88 252) 62 355 125 951 7 714 – 133 665 (90 410) 43 255 19. Impairment of assets Loans receivable impairment Small and medium enterprises Microloans direct lending and intermediaries Co-operatives Total loans receivable Equipment impairment Receivables impairment Reversal of impairments Small and medium enterprises Write-off of assets Loans receivable written off Equipment written off 11 869 7 953 5 037 24 859 955 679 26 493 (5 902) (5 902) 769 36 805 30 353 5 914 113 36 380 142 192 36 714 – – 7 867 – 7 867 Damaged/lost assets as of 31 March 2012 were impaired. the full carrying amount was impaired. therefore. Depreciation and amortisation Depreciation Computer hardware Office equipment Furniture Leasehold improvements Motor vehicle Total depreciation Less: amounts included in project disbursements Total depreciation Amortisation Intangible assets Less: amounts included in project disbursements Amortisation of intangible assets 4 790 (951) 3 839 1 625 (878) 747 1 829 1 686 2 197 457 716 4 684 74 8 128 (6 299) 2 015 732 2 099 5 288 171 10 305 (8 619) 18.

Office equipment is rented on a monthly basis. Project disbursements The respective disbursements are as follows: Service Delivery Channel* National Youth Service and Skills Development Economic Development Communications and Corporate Affairs Information Communication Technology Chief Operations Officer Executive Director projects Human Resource Management Policy Lobby and Advocacy Project disbursements Project-related operating expenses Total disbursements 63 686 22 631 35 771 9 587 623 85 2 657 889 3 227 139 156 79 146 218 302 67 858 32 863 25 850 1 826 820 – – 2 779 69 132 065 67 445 199 510 *Service Delivery Channel includes expenditure relating to youth advisory centres and branches.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 2012 R’000 2011 R’000 20. but not more than five years Buildings 2 890 8 312 9 602 12 959 13 170 3 586 16 756 (13 699) 3 057 The leases relate to buildings occupied by the NYDA and the average lease terms vary from three to five years. and the escalation rates range from 8%–10%. NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 111 . Operating lease expense Building Office equipment Less: amounts included in project disbursements 12 832 3 407 16 239 (12 925) 3 314 Future minimum rentals under non-cancellable operating leases within one year Buildings After one year. 21.

in relation to the GCIS. The amount was disclosed as a contingent liability of R5. 112 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . as the amount represented a present obligation in the previous financial year. The advertisement income was an accrual raised for expenditure incurred. The NYDA was waived of its responsibility to pay this amount and the expenditure of R1.6 million was. which was held during December 2010. among others. The travel expenditure of R2. which was paid in the current financial year.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 2012 R’000 2011 R’000 22.6 million at the end of the previous financial year. reversed in the current financial year. Additional income was generated from the conference registration fees derived from delegates to the conference. whereby the NYDA would settle 50% of this amount. The NYDA and COT reached a settlement agreement. the National Lotteries Board. therefore. as it only represented a possible obligation of the NYDA. World Festival of Youth and Students (WFYS) Income Sponsorship income Registration fee Total income Expenditure Administration Security Media Products Launch Advertising Catering Travel international Travel local Accommodation Total expenditure Gain/(Deficit) for WFYS – – – 19 (1 594) – 14 2 905 – 1 344 14 656 106 2 801 28 595 16 021 3 019 27 716 5 600 1 382 21 136 106 376 (42 803) 16 000 – 16 000 61 185 2 388 63 573 The NYDA won the right to host the World Festival of Democratic Youth and Students Conference. The amount of R16 million became receivable in the current financial year. the Office of the Presidency and various provinces.9 million relates to a payment to City of Tshwane (COT) for buses used during WFYS. The organisation funded the conference expenses from grant income of R29 million from the Office of the Presidency and income generated from various sponsorships including.

Cash generated from operations Surplus Adjustments for: Depreciation and amortisation Gain on disposal of assets Fair value adjustments Write-off of assets Non-cash portion of interest income Donation income Non-cash portion of grant income — Office of the Presidency Impairment deficit Decrease in employee cost accruals Changes in working capital: Decrease in inventories Increase in receivables (Increase)/decrease in rental deposits Increase/(decrease) in trade and other payables from exchange transactions Increase/(decrease) in deferred income Cash generated from surplus Net movement in loan receivables: Decrease in loan receivables 4 400 60 854 22 791 11 814 1 178 56 454 (166) (10 977) – (333) 1 233 21 327 11 (2 544) (1 441) (43 355) 12 918 (95) (432) 805 (15 640) (274) (9 842) 20 591 (1 059) 11 930 (71) (189) 4 726 (13 242) – – 39 086 (7 259) 26 077 1 537 24. as disclosed below. Changes in estimates Equipment and intangible assets In the current period. as disclosed below. 25. Increase in Amortisation Prior Period Furniture Office Equipment Software developed in-house 4–6 years 3–7 years 7 years Current Period 5–10 years 5–10 years 1 year R’000 – – 3 109 3 109 Decrease in Depreciation R’000 (1 203) (432) – (1 635) NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 113 . Non-cash transactions Additions to equipment to the value of R4.6 million and increases the future period depreciation charges with R1. the review of the useful lives of certain intangible assets resulted in a change in the estimated remaining useful life of software developed in-house.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 2012 R’000 2011 R’000 23.6 million. The effect of this revision increased the amortisation charges included in surplus or deficit for the current period by R3.1 million. In the current period. the review of useful lives of equipment resulted in revised useful lives for furniture and office equipment.1 million and decreases future period amortisation charges with R3. The effect of this revision decreased the depreciation charges included in surplus or deficit for the current period by R1.4 million include the purchase of photocopiers through a finance lease to the value of R523 000.

Directors’ emoluments Chief Executive Officer: Mr Steven Ngubeni Salary for managerial services to the NYDA Allowances Total short-term employee benefits Defined contribution plan 1 649 228 1 877 155 2 032 Executive Director: Mr Andile Lungisa Salary for managerial services to the NYDA Allowances Total short-term employee benefits Defined contribution plan 838 14 852 47 899 Executive Director: Mr Yershen Pillay Salary for managerial services to the NYDA Allowances Total short-term employee benefits Defined contribution plan 657 67 724 40 764 Non-executive Fees for service Innocentia Motau Maria Tshabalala Mcebo Rich Khumalo Pholisa Makeleni François Jacobus Slabber 427 427 427 427 427 2 135 368 364 364 364 364 1 824 535 56 591 122 713 664 66 730 110 840 1 412 138 1 550 250 1 800 2012 Other key management personnel Short-term employee benefits R’000 Bonus R’000 Expense Allowance R’000 Defined contribution plan R’000 Total R’000 Executive Managers reporting directly to the Chief Executive Officer: Acting Chief Financial Officer (resigned 31 May 2011) Chief Financial Officer (appointed June 2011) Chief Operations Officer (appointed June 2011) Executive Managers: Mr AM Ntlangeni 752 67 43 47 909 101 1 060 834 – 211 – 2 15 1 6 95 47 109 1 381 882 114 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 2012 R’000 2011 R’000 26.

Directors’ emoluments (continued) Short-term employee benefits R’000 756 756 59 817 646 756 666 844 121 113 108 117 162 8 668 Short-term employee benefits R’000 Defined contribution plan R’000 46 46 9 54 124 46 50 – 8 15 7 19 11 630 Defined contribution plan R’000 2012 Ms T Mavasa (appointed June 2011) Mr SG Mkoka (appointed June 2011) Mr CJ Peters (acting until 30 April 2011) Mr DJ van Vuuren Ms N Mphahlele (appointed June 2011) Mr V Mulaudzi (appointed June 2011) Ms L Dlova (appointed July 2011) Mr KE Mahura Ms MI Molotsi (acting until 31 May 2011) Ms S Samuel (acting until 31 May 2011) Mr BS Magongo (acting until 31 May 2011) Ms NG Hluyo (acting until 31 May 2011) Ms GBA Mjadu (acting until 30 June 2011) Bonus R’000 – – 72 69 54 – – 68 72 71 60 74 61 879 Expense Allowance R’000 17 20 4 87 48 16 13 10 15 14 8 12 14 339 Total R’000 819 822 144 1 027 872 818 729 922 216 213 183 222 248 10 516 2011 Other key management personnel Bonus R’000 Expense Allowance R’000 Total R’000 Divisional Directors and senior management reporting directly to the Chief Executive Officer: Acting Chief Financial Officer (resigned December 2010) Acting Chief Financial Officer (appointed January 2011) Chief Operations Officer (resigned August 2010) Divisional Directors: Mr AM Ntlangeni Ms MI Molotsi Mr BS Magongo Mr CJ Peters Mr DJ Van Vuuren Ms S Samuel Ms NG Hluyo Ms GBA Mjadu Mr KE Mahura Mr FC Bruintjies Ms D Chuma Ms M Tleane 670 679 611 691 666 423 655 620 794 232 171 430 7 774 133 143 121 112 151 – 147 123 135 185 – 36 1 673 42 91 46 10 87 98 69 56 23 40 15 213 905 74 75 60 144 57 63 144 53 – 16 – 56 817 919 988 838 957 961 584 1 015 852 952 473 186 735 11 169 115 562 148 422 191 – 196 66 6 43 38 9 28 857 163 689 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 26.

The loan period is from June 2006 to May 2011. Jointly controlled asset with Massmart Holdings Limited 3.2 million. and when. 6. Nil (2011: Nil) The interest rate on this loan is prime plus 3%. 3. Jointly controlled asset with Mobile Telephone Network Ltd (MTN) Associates 1.Serokolo Health Solutions (Pty) Ltd 4. in order to assist young black entrepreneurs to start franchises Nil (2011: Nil) The NYDA will provide funding to entrepreneurs and remit collections to Massmart as. Participation fees are not charged.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 Figures in Rand thousand 27. K5 Transport Logistics (Pty) Ltd 10% The NYDA granted a loan to K5 Transport Logistics (Pty) Ltd for an approved amount of R1. Decti Rating Agency (Pty Ltd 19% The NYDA granted a loan to Decti Rating (Pty) Nil Ltd for an approved amount of R1. Related parties Loans and investments disbursed in 2012 Nil (2011: Nil) Type Joint ventures Related Parties 1. received The NYDA will provide funding to entrepreneurs and remit collections to MTN as. and when. The interest rate on this loan is prime. received The Franchise Fund will provide funding to SMEs and remit collections to the NYDA 57% Nil (2011: Nil) 80% Nil (2011: Nil) 26% The NYDA granted a loan to Chicken Nil Kwasa (Pty) Ltd for an approved amount (2011: Nil) of R1. The loan period is from December 2006 to December 2011. respectively. 116 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . received 2. with a commitment to invest R80 million Terms and conditions FNB will provide funding to SMEs and remit collections to the NYDA as. Jointly controlled asset with FNB Leverage Finance (LF) % share-holding 33% Nature of transaction The NYDA invested R36 million. Participation fees are charged at a rate higher than 1. Participation fees are not charged. Franchise Fund (en commandité partnership between the NYDA and Business Partners) 2. The loan period is October 2005–October 2010 The interest rate on this loan is prime plus 2%.5 million. Chicken Kwasa (Pty) Ltd 50% The NYDA and Massmart contributed R1 million each to provide funding to entrepreneurs for franchises costing less than R150 000 The NYDA and MTN contributed R2 million and R1. to provide funding to entrepreneurs for franchises costing R30 000 The NYDA invested R100 million (80% stake) in the Franchise Fund. less 2%. The loan period terminates on 30 December 2013. The loan period is from March 2005 to 2010.25% of actual gross monthly revenue or R9 100 per month. Nil (2011: Nil) Nil (2011: Nil) 10% The NYDA granted a loan to Soundrite Sound (Pty) Ltd for an approved amount of R5 million. and when.75 million The interest rate on this loan is prime.Soundrite (Pty) Ltd 26% The NYDA granted a loan to Serokolo Health Solutions (Pty) Ltd for an approved amount of R1. 5.5 million (2011: Nil) The interest rate on this loan is prime plus 2%.2 million. Participation fees are not charged.

4 million (2011: Nil) R167 000 (2011: R133 000) Nil (2011: R300 000) Nil (2011: Nil) R34 000 (2011: R6 000 ) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) R167 000 (2011: R71 000) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) R1.1 million) Nil (2011: Nil) R139 000 (2011: R129 000) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) R1.5 million) R516 000 (2011: R487 000) R5.7 million (management fees with interest and interest on loan)) Nil (2011: Nil) Other income with related parties Nil (2011: Nil) Impairment on loans with related party R1.8 million (2011: R1.7 million (2011: R4.2 million) Nil (2011: Nil) R204 000 (2011: R250 000) Nil (2011: Nil) Nil (2011: Nil) R2.1 million) R233 000 (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) R233 000 (2011: Nil) NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 117 .3 million) Nil (2011: Nil ) Nil (2011: Nil) R46 000 (2011: R44 000) R572 000 (2011: R566 000) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) R516 000 (2011: R487 000) R5.2 million) (2011: Nil) Interest income R1.4 million) R2.8 million (2011: R1.5 million (2011: R6.5 million (2011: R6.3 million) R1.7 million (2011: R3.5 million Nil (2011: R23.5 million) Nil (2011: Nil) R114 000 (2011: R110 000) Nil (2011: Nil Nil (2011: Nil) R109 000 (royalty income) (2011: Nil) R1.2 million (2011: R1.4 million (2011: R2.2 million (2011: R1.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 Loan balance Liability before impairment balance R14.2 million) Administration fees Nil (2011: Nil) Other expense with related parties Nil (2011: R3.

Related parties (continued) Loans and investments disbursed in Type Related parties 7. Lotteries Board 3.3 million 10.5 million is prime less 1%.5 million R120 000 (2011: R87 000) Nil (2011: Nil) Nil (2011: Nil) 1012 Nil (2011: Nil) Terms and conditions The interest rate on this loan is prime plus 2%. Sword South Africa (Pty) Ltd 19% The NYDA granted a loan to Sword South Africa (Pty) Ltd for an approved amount of R2.4 million 9. The loan period is from February 2008 to March 2013. The interest rate on this loan is prime. Fellow Subsidiary/ Department 1. Government Communication Information System (GCIS) 2. Participation fees are not charged. The loan period is from September 2007 to October 2012. Participation fees are not charged. Vynide Investments % Share-holding 10% Nature of transaction The NYDA granted a loan to Vynide Investments for an approved amount of R3 million 8. E2 BA-LE2 (Pty) Ltd 19% The NYDA granted a loan to E2 BA-LE2 for an approved amount of R2. The loan period is from November 2007 to December 2012. The interest rate on this loan is prime. All entities on national sphere of government. Other entities on the national sphere of government N/A N/A Sponsorship for the WFYS Expenses incurred for goods and services obtained Nil (2011: Nil) Nil (2011: Nil) None None N/A The GCIS advertises events on behalf of the NYDA Nil (2011: Nil) None Associates Advances to directors and key management A Lungisa Y Pillay S Ngubeni M Mashinini N/A N/A N/A N/A Advances to be repaid Advances to be repaid Advances to be repaid Advances to be repaid Nil Nil Nil Nil None None None None There were no further transactions with the national sphere of government after the reporting date. Mafatafata Printing and Packaging 19% The NYDA granted a loan to Mafatafata Printing and Packaging for an approved amount of R1. 118 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . Loan period is from April 2008 to September 2013. The interest rate on the loan of R2. Participation fees are not charged. as well as entities that report to entities on national sphere of government.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 27.

3 million) R3.8 million) Liability balance Nil (2011: Nil) Interest income R313 000 (2011: R301 000) Administration fees Nil (2011: Nil) Other expense with related parties Nil (2011: Nil) Other income with related parties Nil (2011: Nil) Impairment on loans with related party R3 million (2011: R2.3 million) Nil (2011: Nil) R110 000 (2011: R130 000) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: R1.9 million) Nil (2011: Nil) Nil (2011: R233 000) Nil (2011: Nil) Nil (2011: Nil) R2.5 million (2011: R3.5 million (2011: R 2.5 million (2011: R2.9 million) Nil (2011: Nil) R256 000 (2011: R236 000) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) R3.2 million) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) R844 000 (2011: R581 000) R16 million (2011: R24 million) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Loan balance before impairment Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Liability balance Interest income Administration fees Other expense with related parties Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Advances to Directors and Key Management R374 000 (2011: Nil) R163 000 (2011: Nil) R14 000 (2011: Nil) R23 000 (2011: Nil) Other income with Impairment on related parties Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) loans with related party Nil (2011: Nil) R163 000 (2011: Nil) Nil (2011: Nil) R23 000 (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) Nil (2011: Nil) NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 119 .8 million) R2 million (2011: R2 million) Nil (2011: Nil) R179 000 (2011: R183 000) Nil (2011: Nil) Nil (2011: Nil) R24 000 (royalty income) (2011: Nil) R2 million (2011: R2 million) R1.1 million (2011: R1.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 Loan balance before impairment R3 million (2011: R2.

R32 million of the above committed amount had been paid. as at 31 May 2012. a company that 120 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . Contingent liability A contingent liability is an existing condition or situation involving uncertainty as to possible loss to an organisation. which will ultimately be resolved when one or more future events occur. but could not be implemented. or fail to occur. in respect of late payment of management fees Interest paid to the Progress Fund for loans paid on our behalf Fraudulent use of credit card Interest paid on late payment of rental 7 – 1 205 240 – – – – 3 1 455 2011 R’000 – 712 – – 118 512 697 6 11 2 056 31. in respect of BCD Travel (Connex) Some R28 million of the disclosed irregular expenditure relates to travel and accommodation services procured from BCD Travel. Irregular expenditure Opening balance Add: Irregular expenditure — current year Less: Amounts condoned Less: Amounts recoverable (not condoned) Less: Amounts not recoverable (not condoned) Irregular expenditure for the period 67 649 133 252 – – – 200 901 – 67 649 – – – 67 649 Disclosed opening balance of irregular expenditure The irregular expenditure disclosed for the 2011/2012 financial year includes an opening balance of R67 649 000. The NYDA has the following contingent liabilities which meet the definition. The reason for disclosing this opening balance is that National Treasury has yet to approve and condone this irregular expenditure. 29. if one or more future events. Commitments Already contracted for. • Labour-related matters totalling R115 000 30. not wholly within the agency’s control occur. in respect of management fees SARS penalties on late payments SARS interest on late payments Interest paid to Merseta Interest paid to the Progress Fund. but not provided for. Resolution of the uncertainty may confirm the loss or the incurrence of a liability. because the NYDA received the last tranche of its grant in the last month of the financial year. at 31 March 2012 • Economic development • National Youth Service and skills development • Communications and public relations R’000 34 133 19 711 22 286 76 130 These commitments arise from the contracts relating to project expenses that the NYDA entered into before the reporting date of 31 March 2012. A contingent liability is recognised by the NYDA when that uncertainty will ultimately be resolved. Fruitless and wasteful expenditure 2012 R’000 Standard Bank late payment Interest paid to Old Mutual. Significant contributors to the value of irregular expenditure incurred during the current financial year. which is irregular expenditure incurred and disclosed in the financial statements of the 2010/2011 audited financial statements.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 28. or fail to occur. as provided for above. • Travel and accommodation expenses.

Unfortunately. being classified as irregular. without following the tender process. Subsequent to the expenditure for services delivered by BCD Travel being classified as irregular by the Auditor-General. prior to the beginning of the current financial year and whose tax clearance certificate had expired at the time goods and services were procured during the course of the current financial year. the tender procurement process was only concluded after year-end. Reconciliation between budget and statement of financial performance Reconciliation of budget surplus/deficit with the surplus/deficit in the statement of financial performance: Actual Account Net surplus as per statement of financial performance Grant income Interest income WFYS sponsorship Donor-funding income Other income Fair value adjustments Profit on disposal of assets Bad debts recovered Total income Administration and overheads Communication and PR expenses Employee costs Information technology expenses Outsourcing and external services Travel and entertainment expenses Seminars and training expenses Impairment Write-off Donor-funding disbursement Interest paid WFYS Project disbursements Total expenditure Net surplus per approved budget R’000 26 077 384 564 24 205 16 000 274 3 309 432 95 8 428 887 20 118 33 448 64 329 15 438 11 493 13 611 3 017 20 591 805 274 41 1 343 218 302 402 810 26 077 Budget R’000 34 286 385 853 11 645 – – – – – – 397 498 14 995 15 774 73 991 6 508 5 762 5 359 5 357 – – – – – 235 466 363 212 34 286 Variance R’000 (8 209) (1 289) 12 560 16 000 274 3 309 432 95 8 31 389 (5 123) (17 674) 9 662 (8 930) (5 731) (8 252) 2 340 (20 591) (805) (274) (41) (1 343) 17 164 (39 598) 8 209 Variance % (24)% –% 108% 100% 100% 100% 100% 100% 100% 8% (34)% (112)% 13% (137)% (99)% (154)% 44% (100)% (100)% (100)% (100)% (100)% 7% (11)% 24% 121 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 . and that individual transaction amounts were always lower than the tender threshold. at the time. in 2001. resulting in all expenditure incurred. it was accepted that each travel and accommodation transaction was an independent transaction from the overall amount spent in a year. Expired Tax Clearance Certificates R17. • • 32.ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 31. with the supply chain management unit only playing an advisory role. Subsequent to year-end. three service providers were appointed through a tender process. for the entire 2011/2012 financial year. During this period. These divisions did not necessarily follow the correct supply chain management prescripts during the competitive bidding process thus the expenditure was irregular. from service providers registered on the NYDA’s supplier database. Copies of quotations The procurement of goods and services was decentralised to divisions. the NYDA management immediately started a process of procuring the services of a service provider through a tender system. and kept the quotations and all other related documents received during the bidding process. for the period 1 April 2011 to 31 October 2011. This was due to the fact that. decided on the supplier to be used to procure goods and services. Irregular expenditure was awarded the contract to provide travel and accommodation services to the former Umsobomvu Youth Fund. After the merger of Umsobomvu Youth Fund and the National Youth Commission to form the National Youth Development Agency. respective divisions within the NYDA sourced quotations directly from suppliers listed on the NYDA supplier database. in respect of BCD Travel.6 million of the disclosed irregular expenditure resulted from goods and services procured through a quotation based process. the new entity continued to utilise the services of BCD Travel.

NOTES 122 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

NOTES NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 123 .

NOTES ANNUAL FINANCIAL STATEMENTs For the year ended 31 March 2012 Notes to the financial statements for the period 31 March 2012 124 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

NOTES NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 125 .

NOTES 126 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

5 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .

gov. OUR FUTURE.nyda.gov.za www.za 2 NATIONAL YOUTH DEVELOPMENT AGENCY ANNUAL REPORT 2011/2012 .OUR YOUTH. NATIONAL YOUTH DEVELOPMENT AGENCY 11 Broadwalk Avenue Halfway House Midrand 1683 PO Box 982 Halfway House 1685 Fax: 086 606 6563 Call center: 08600 YOUTH (96884) e-mail: info@nyda.

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