1. PRESENTED BY: MUSA ZAMISA
2012/13 NYDA ANNUAL REPORT
RESEARCH UNIT
PRESENTED BY: MUSA ZAMISA
08 OCTOBER 2013

2. AUDIT OPPINION AUDIT OPPINION 2009/10 2010/11 2011/12 2012/13
Unqualified
(emphasis matters)
Unqualified (emphasis matters)
Matters Emphasised by the Auditor General
Material Impairment
Material impairments to the amount of R31 571 000 were incurred as a result of the impairment of loans.
A total gross loans of R212  receivable to the NYDA had been impaired as the recoverability is doubtful.
Expenditure management,
The Accounting Authority did not take effective and appropriate steps to prevent irregular expenditure as well as fruitless and wasteful expenditure in line with the Public Finance Management Act No. 29 of 1999 (PFMA).
Effective and appropriate disciplinary steps were not taken against officials who incurred irregular expenditure in line with the PFMA
Revenue Management
The accounting authority did not take effective and appropriate steps to collect all money due in line with the PFMA.
Procurement and contract management,
Goods and services of a value above R500 000 were procured without inviting competitive bids in line with Treasury Regulations.
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, in contravention of Regulations and Preferential Procurement Regulations.
Contracts were awarded to bidders who did not submit a declaration of past supply chain practices such as fraud, abuse of Supply Chain Management (SCM) system and non-performance, which is prescribed in order to comply with Treasury Regulation 16A9.2
Leadership
the leadership did not exercise adequate oversight responsibility regarding financial reporting and compliance with laws and regulations
Financial and performance management
Management did not monitor the controls designed to ensure accurate and complete financial statements, and compliance with laws and regulations.

3. PERFORMANCE AGAINST PRE-SET INDICATORS
47 performance indicators achieved against a total of 55
This represent 85% achievement
A total of 8 or 15% indicators were unachieved
2010/11
2011/12
2012/13
85.7 %
90 %
85 %

4. PERFORMANCE AGAINST PRE-SET INDICATORS PER PROGRAMME
PERFORMANCE ON INDICATORS PER PROGRAMME
Programme
Total
achieved
missed
Economic Participation 12 11 1
Education and Skills Development 6
Policy and Research 8 7
Partnership & Stakeholder Management 9 2
Communication & Advisory Services
National Youth Services & Social Cohesion 5
Sport Recreation & Arts
Health & Well Being
Governance & Administration 4
National Youth Fund
TOTAL 55 47

5. AREAS OF NOTE AROUND ACHIVEMENT AGAINST INDICATORS
AREAS OF NOTE FOR THE COMMITTEE
AREAS OF NOTE AROUND ACHIVEMENT AGAINST INDICATORS
Did not achieve the target of ensuring an enhanced performance management system to support organisational performance (GOVERNANCE).
-this should be resolved since it could destabilise performance
Did not achieve the target of establishing a code of ethics for youth work (POLICY & RESEARCH)
Did not achieve the target of acceptably functional internal audits, with about 17 showing weak controls (GOVERNANCE).
-this needs increased attention for NYDA to curb irregular spending and non-compliance with legal prescripts. KLMKOK

6. AREAS OF NOTE FOR THE COMMITTEE
In Programme 5 (Communication and advisory services) it is not clear if the NYDA is sustainably working with key societal institutions like Universities, FET colleges, schools and libraries.
- Such partnerships would ensure that NYDA programmes are firmly entrenched and mainstreamed in communities.
The NYDA lobbied and formed partnerships with key stakeholders (.i.e. national, provincial, local government and private sector)
- However, it is not clear if such lobbying yielded positive and tangible outcomes:
e.g. - Were there any Memorandum of Understandings (MoU) entered into?
- Were there any structures (.i.e. youth offices) established?
-If yes how many? If planned, what are the time frames?

7. HUMAN RESOURCE MANAGEMENT (HRM)
MAINLY EQUITY TARGETS & VACANCIES (Pg 62-63) 230 (35%) posts were vacant vs. 636 approved posts
AREA
APPROVED
VACANT
Service Delivery Channels
303
137
Economic Development 53 26
Research & Policy 35 19
Information & Technology 28 16
Finance & Supply Chain 6

8. HUMAN RESOURCE MANAGEMENT (CONT)
EQUITY TARGETS
0 achievement against a target of employing 4 female people with disabilities across different employment levels
This is an area needing serious attention going forward!

9. SUMMARY OF KEY POINTS GOING FORWARD
SUMMARY OF FINANCIAL STATEMENTS
Perhaps National Treasury should start to incorporate expenditure performance of the NYDA into the detailed Section 32 Report Presented to the Committee quarterly.
This would enhance the Committee’s oversight and assistance to the NYDA.
Going forward, the NYDA needs to start monitoring and evaluation the outcomes and progress of key programmes (e.g. Matric Re-write) and report back to the Committee:
e.g. Metric Rewrite: -how many students have benefited to date?
- How may have passed?
- How many have advanced to post-school education?
-How many have advanced to the world of work?
Focus on filling all funded positions, especially critical positions
E.g. Finance, Supply Chain Management, Service delivery channels

10. SUMMARY OF KEY POINTS GOING FORWARD
Needs to tighten its internal controls so as to respond to issues raised by AG
Improve its financial and supply chain management to prevent future financial losses
Foster strong ties with community organs so as to mainstream the NYDA programmes into broader society

11. THANK YOU