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UMSOBOMVU YOUTH FUND

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					Umsobomvu Youth Fund
        Presentation to
Portfolio Committee on Labour

       25 October 2005
Outline
   The UYF team
   Key issues from the audited financials
       Three years – cumulative impact report
            Leveraging opportunities – impact on commitments
            Impact data
            Commitments (contracted and non-contracted)
       Last year’s achievements
            Some highlights
            Target vs Actual
            Financial Information

   Challenges
       Consolidation of audited financials
       Access to UYF services – especially rural areas

   Plans for 2005/2006
The UYF Team
   Adv. R Moloko – Chairperson of the Board
   Ms D Motau – Non-Exec. Director & Chair of Audit
    Committee
   Mr J du Preez – Non – Exec. Director
   Mr T Wixley – Independent Non Executive
    Member of Audit Committee
   Mr M Kekana – Chief Executive Officer
   Ms J Law – Chief Finance Officer
Approved & Projected Commitments
                                        Approved &
           Business Unit                                   Projected 2005/6   Projected 2006/7        Total
                                     Contracted to Date


Contact Information & Counselling       R 71,438,947         R 27,646,047        R 9,705,399      R 108,790,392

Skills Development & Transfer          R 200,865,417         R 92,417,674       R 79,011,134      R 372,294,226

Business Development Services           R 83,608,396         R 52,093,146       R 33,954,299      R 169,655,840

Enterprise Finance                     R 394,745,248         R 33,682,384       R 36,182,384      R 464,610,017

Communications & Advocacy               R 10,434,505          R 8,606,946        R 6,606,946       R 25,648,396

Capacity Building & Research              R 5,471,576         R 4,112,542         R 4,112,542      R 13,696,661

IGM's & Youth in LED                     R 11,117,421        R 10,258,536       R 10,258,536       R 31,634,493

                                       R 777,681,510       R 228,817,275      R 179,831,240      R 1,186,330,025
These projections are done based on the Assumption that some projects will be scaled back

The projections do not include UYF's Operating Overheads

The commitment figures are up to 30 September 2005
Current Funding Situation
   UYF received R855 million from govt. in 2001.
   R780 million has been spent/committed
    contractually and will be paid out until 2006/7/8
   Taking out Auditors definition of commitment,
    UYF is actually fully committed. Auditors only
    recognize those commitments that have been
    reduced to writing
       To protect itself against non delivery UYF signs normally
        for 1 year only.
       However, commitment – 3 years at least
Cumulative Report
Cumulative Report
Cumulative Report
Factors That Have Evolved
   Lack of capacity in rural areas, govt.
    departments/ NGOs affect time it takes to
    implement a programme. Often a new
    organisation has to be established (e.g. National
    Youth Service Programme in Limpopo/ Free
    State)

   Leveraging UYF resources with third parties has
    decreased the amount of funds needed from UYF
    to implement programmes. Raised R216 million
    in 2004/5 from third parties.
For Year Under Review (highlights)
   Skills Development & Transfer
       Funding of 26 FET Colleges
            More than 2000 youth receiving training in vocational skills
            Succeeded in getting SETAs and FET Colleges working
             together in an unprecedented way
            Assisting in integration of education and training
            Rural outreach achieved due to location of FET Colleges
            Strengthening of the Public Sector Education System
For Year Under Review (highlights)
   Skills Development & Transfer
       Implementation of the National Youth Service
        Programme – launched August 2004
            More than 10 000 youth involved in service
            The National Youth Service Unit established in less than 6
             months
            Effectively mainstreamed NYSP
For Year Under Review (highlights)
   Business Development Support
       Expanded the Voucher programme into 9 from 5
        provinces
       Launched the Entrepreneurship Education project – 30
        schools, 180 teachers in 3 provinces (7200 learners)
       Implementing the National Venture Creation Learnership
        – 3 FET Colleges running a pilot programme
For Year Under Review (highlights)
   Enterprise Finance
       First National Bank increased their exposure from
        R20million to R240million focusing on the same youth
        target. One of the largest Public Private Partnerships of
        its kind globally
       Our loan book surpassed the R100million and more than
        1000 enterprises
For Year Under Review (highlights)
   Contact Information & Counselling
       Implemented the Graduate Database as per President
        Mbeki’s directive in May 2004. The database is called
        “Jobs and Opportunities Seekers Database” (JOBS).
        Currently has 68 000 CVs registered of unemployed
        graduates and placing into jobs since March ‘05
       Launched the SA Youth Card in Dec 04. Currently has 10
        000 card holders & 90 companies providing discounts.
        Associated Youth Magazine in Sunday Times (to include
        Sowetan, etc)
       17 new centres were established (in total 69 access
        points)
For Year Under Review
For Year Under Review
For Year Under Review
For Year Under Review   (income statement)
Challenges
   Consolidation of Audited Financial Statements
       GAAP requires application of AC132 which stipulates the
        consolidation of underlying investments due to control
        (why control by UYF?).
       Materiality level of UYF set at R700 000 due to small
        amount of assets under control and amount lent as at
        year end
       Reporting requirements - burden on SMEs.
       To Address:
            Adopting International Financial Reporting Standards (fair
             value reporting i.s.o consolidation)- IAS 28
            Eastern, Central & Southern Federation of Accountants
             (SAICA is part of) proposes New Guide on Financial
             Reporting for SMEs. Will reduce reporting complexities

   SME regulatory burden more serious for young
    people
Challenges
   Access to UYF services
       Issue is about scale
       Scale limited because UYF was set up with short term in
        mind. Therefore need to sustain few programmes
        instead of a “spray gun approach”
       Growth limited due to unavailability of viable service
        providers in rural areas. Therefore, growth dictated by
        presence of Service Providers


   To address:
       Propose to set up UYF outlets
       Outlets will also facilitate integration of services
Plans 2005-2006 (highlights)
   Support government’s 6% growth target focusing
    especially on the second economy

   Skills development & transfer
       Supporting more FET Colleges
       Support project consolidate (DBSA/ Dept of Provincial &
        Local govt.)
       Launch the Graduate Development Programme (Social
        Capital for the unemployed graduate)
       Implement Service Programmes along volunteer lines –
        e.g. teaching Maths and English, caring for orphans or
        child headed households
Plans 2005 - 2006 (highlights)
   Business Development Support
       Expand the Entrepreneurship Education project to more
        schools and provinces
       Increase Entrepreneurship Education for out-of-school
        youth
       Launch the Mentorship voucher product & reinstatement
        of the company registration voucher
       Launch the Business Opportunities Support Service
        (linking youth to business opportunities)
Plans 2005 - 2006 (highlights)
   Enterprise Finance
       Expand the Cooperative Programme both for production
        coops and savings coops
       Franchise Cadet Programme (with Sanlam & Business
        Partners)
       Training of loan officers (up to 500 to serve communities
        to improve access to finance)
   Implementation of pilot UYF outlets at least by
    March 2006
       Enable scaling up of UYF programmes; and
       Integration of UYF services.
       Thank You



unleashing the potential of youth

				
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