PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS ON

PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS ON NEMISA’S ANNUAL REPORT FOR 2012/2013 10 OCTOBER 2013 1

1. NEMISA Mandate 2012 -2013 q. NPC established to address equity of access to broadcasting industry q. Mandate of the Do. C ‘To create a vibrant ICT sector that ensures that all South Africans have access to affordable and accessible ICT services in order to advance socio-economic development goals and support the African Agenda and contribute to building a better world’. q Furthermore, one of the strategic goals of the Do. C is to ‘Accelerate the socio-economic development of South Africans by increasing access to, as well as the update and usage of, ICT’s through partnerships with businesses and civil society and the three (3) spheres of government’. One of the strategic objectives linked to this strategic goal is ‘Contribute to increasing ICT skills base in South Africa and increase access to, and uptake and usage of ICT’s. (Do. C Strategic Plan 2010 -2013). NEMISA 2013 2

2. NEMISA 2013 Strategic Focus Areas 3

CONTENTS 1. 2012/13 ANNUAL REPORT q Corporate Governance q Report on Human Resources q Report on Performance 2. 2012/13 ANNUAL FINANCIAL STATEMENTS 3. AUDITOR GENERAL’S REPORT NEMISA 2013 2012 - 2013 4

Human Resources q New business model for a new institute q Board approved new HR policies q New entity would be delivering a broader mandate of ensuring SA improves competitiveness in ICT through impacting all levels and sectors of society q Change meant NEMISA had to balance imperative running of current projects with consideration for migrating into readiness for implementing the new vision for the new institute q Board established processes of dealing with the implementation plan/migration plan into the new institute q Board initiated a competency assessment of the executives in order to have appropriate development and support for the new institute NEMISA 2013 5

Corporate Governance q Adherence to Codes of Good Corporate Governance (PFMA, Companies Act as amended, Protocol on C/G for SOE’s, King Report); q Board Charter; q Memorandum and Articles of Association; q Strategic and Annual Plans; q Periodic reviews management performance and; q Ongoing assessment of policies NEMISA 2013 6

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• BARC Chairperson: Gaitsiwe Lenepa – BARC CHARTER (Adopted section 55(1)(a) of the PFMA and TR 27. 1) – EVALUATION OF THE ANNUAL FINANCIAL STATEMENTS – ADOPTED RISK MANAGEMENT – INTERNAL CONTROL – FUNCTIONING INTERNAL AUDIT – COMBINED ASSURANCE • BARC has taken into account three pillars of assurance (Management, Internal audit and external audit in terms of King III) – LEGAL AND REGULATORY COMPLIANCE 15

• REVIEW OF ACTIVITIES – OPERATING RESULTS • The company's net deficit amounted to R 974, 718 (2012: R 5, 437, 427) for the year ended 31 March 2013. – REVIEW OF OPERATIONS • Total income received for the year (in the form of government funding, interest receivable and sundry income) amounted to R 40, 839, 051 (2012 R 35, 675, 895). These funds are recognised on a systematic basis over the periods necessary to match the grants with the related costs which they are intended to compensate. Operational expenditure amounted to R 41 813 769 (2012: R 41, 113, 322) for the period. • The deficits is due to increased Direct and Overhead costs such as property rental costs, property rates and taxes which could not be supplemented by the baseline allocation. NEMISA received an additional income in a form of projects such as the National Digital Repository (NDR) and the Community Radio. Although this is income minimal, it assists in supplementing the deficit. 16

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• REPORT ON THE FINANCIAL STATEMENTS In my opinion, the financial statements present fairly, in all material respects, the financial position of NEMISA as at 31 March 2013, and its financial performance and cash flows for the year then ended in accordance with the SA Standards of GRAP and the requirements of the Public Finance Management Act, 1999( Act No. 1 of 1999) (PFMA). • REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS • In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion. – Predetermined objectives – Compliance with laws and regulations – Internal control 19

QUESTIONS ?