uddi-annual-report-2013-2014-13feb by Rocky Heath

ANNUAL REPORT 2013/14

UDDI 2013/14 ANNUAL REPORT

VISION

A LEADER IN SOCIO-ECONOMIC DEVELOPMENT IN THE NELSON MANDELA BAY MUNICIPALITY.

MISSION

PROVIDING LEADERSHIP

AND DEVELOPMENT SERVICES TO IMPROVE THE SOCIO-ECONOMIC

CONDITIONS OF THE COMMUNITY.

UDDI 2013/14 ANNUAL REPORT

Annual Report 2013/14

ABOUT UDDI

CHAIRPERSON’S FOREWORD

BOARD OF DIRECTORS

CHIEF EXECUTIVE OFFICER’S REPORT

PROGRAMME PERFORMANCE REPORT

CORE TEAM

HUMAN RESOURCES REPORT

CORPORATE GOVERNANCE

DIRECTORS’ RESPONSIBILITY AND APPROVAL

DIRECTORS’ REPORT

INDEPENDENT AUDITOR’S REPORT

ANNUAL FINANCIAL STATEMENTS

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

UDDI 2013/14 ANNUAL REPORT

The Uitenhage Despatch Development Initiative (UDDI) is a special purpose agency established to facilitate sustainable development of the north-western region of the biggest metropolitan in the Eastern Cape province, the Nelson Mandela Bay Municipality (NMBM). The agency advocates for the socioeconomic upliftment of the Uitenhage and Despatch areas, and the broader Nelson Mandela Bay Metro, by influencing economic activity and policy engagements with the public and private sectors for the direct benefit and empowerment of these communities. The long term outlook is to effect positive social change, employment creation and poverty eradication through targeted, multi-sector development instruments that create sustainable access to the economy for these communities. The UDDI was founded in May 2003 as a Section 21 (non-profit) company. It is wholly-funded by the NMBM and is also supported by the Volkswagen South Africa Group (VWSA). Vision: A leader in socio-economic development in the Nelson Mandela Bay Municipality. Mission: Providing leadership and development services to improve the socio-economic conditions of the community

UDDI 2013/14 ANNUAL REPORT

UDDI TARGETS EDUCATORS AND LEARNERS IN STEM

UDDI 2013/14 ANNUAL REPORT

STRATEGIC GOALS As defined in the UDDI 2014 - 2017 strategic plan, the focus of the organisation is on becoming a leading socioeconomic development agency within the Nelson Mandela Bay area by: Stimulating economic growth, investment and supporting entrepreneurship; Contributing to the social upliftment of the community through education and training; - Effectively managing strategic resources; - Building innovative teams and being a great place of work; and - Establishing efficient business processes. OPERATIONAL FOCUS AREAS

To be a development agency for the sustainable socio-economic growth of the Uitenhage and Despatch communities and the broader Nelson Mandela Bay area, the agency renders a variety of services related to the following operational areas:

- Town regeneration

- Enterprise development - Education, training and skills development VALUES EXCELLENCE: Meeting and exceeding our stakeholdersâ&#x20AC;&#x2122; expectations INTEGRITY: Being honest, ethical, accountable and transparent PROFESSIONALISM:

Conducting our business with highest levels of diligence and competence, and continuously innovating PASSION: Doing our work with pride, drive and energy LEADERSHIP EMPLOYEE PROMISE: Employee engagement and participation focusing on growing people, leading by example, treating management and leaders with respect, and treating staff with respect.

UDDI 2013/14 ANNUAL REPORT

CUSTOMER VALUE PROPOSITION The UDDI contributes to the socio-economic development of Uitenhage and Despatch and the broader Nelson Mandela Bay Municipality by way of: NETWORKING, MATCHING AND BRIDGING Through constructive networking the UDDI will match needs with resources. Connect key stakeholders to forge partnerships towards collective and collaborative solutions to the regionâ&#x20AC;&#x2122;s developmental needs. Maintain sound economic, political and social relations to accomplish such partnerships or collaborative efforts as needed from time to time. ADVOCACY Be the voice of the community, its needs and the future viability of the region. Sensitise stakeholders to the regionsâ&#x20AC;&#x2122; development agenda on every platform. Cultivate a sense of ownership and accountability. Create a call to action and a cause for stakeholders. FACILITATION Be a consultative agent for the region. Allocate resources/people to programmes or initiatives. Appoint service suppliers to give effect to project objectives. INNOVATION Create new possibilities by finding alternative solutions to old problems. Initiate or generate ideas and serve as a development think-tank for the region. Pilot new development initiatives. Be the catalyst for sustainable change in the region.

UDDI 2013/14 ANNUAL REPORT

Chairperson’s FOREWORD

Uitenhage and Despatch are two of the 72 small towns that are part of the Eastern Cape Province. Of these 72 small towns, only Uitenhage has a well-established industrial base. The goal of the UDDI is to leverage this industrial base for the sustainable socio-economic development and growth of the majority of the population of Uitenhage and Despatch. The UDDI has identified three priority areas in order to achieve this: • Enterprise development - contributing to creating the conditions in which local entrepreneurs can thrive and multiply and thereby allow communities to have sustainable livelihoods. • Increasing access to high quality education, skills and training through incubation programmes, developing and accessing local markets via innovative partnerships. • Urban regeneration - leading the charge to promote increased investment in the Uitenhage and Despatch area thus leading to increased economic opportunities and vibrant communities. In order to achieve these goals the UDDI has spent a significant part of the current year focusing on: • Strengthening the capacity and capability of the organisation internally. As a consequence, the UDDI now has a strong and motivated team with a proven track record of success and from a governance point of view, sound policies and processes are now in place and well documented. • Engaging stakeholders to ensure that the UDDI is indeed relevant and responsible to the real issues. To this end strong and innovative partnerships have been formed with a variety of stakeholders including the local councillors, the municipality, SAASTEC, local schools and Principals and local industry. The work of the UDDI is hard and unenviable due to the difficult conditions that face the majority of the people it is set up to serve. However it is very capably led by the CEO, Patricia Dlamini, who has brought skill, fresh energy and new insights into the organisation. I would like to thank the CEO for her hard work and contribution. I would also like to thank the board of the UDDI for their passion and commitment to sustainable and meaningful community economic development. I have no doubt that the stage is set for the UDDI to make a catalytic contribution to the economic growth and development on the people of Uitenhage and Despatch and thereby fulfil its vision of being a leader in socio-economic development. NONKQUBELA MALIZA CHAIRPERSON

UDDI 2013/14 ANNUAL REPORT

NONKQUBELA MALIZA CHAIRPERSON

UDDI 2013/14 ANNUAL REPORT

Board

OF DIRECTORS

UDDI 2013/14 ANNUAL REPORT

Board OF DIRECTORS 1. Nonkqubela Maliza, Chairperson Appointed: 2009 2. Mzwandile Bala, Vice Chairperson Appointed: 2010

3. Fayruz Abrahams Appointed: 2010

4. Paul Sherman Appointed: 2003 5. Chuma Mbande Appointed: 2009

6. Pindi Vena Appointed: 2003 7. Msokoli Ntombana Appointed: 2010

UDDI 2013/14 ANNUAL REPORT

8. Patricia Dollane Chambers Dlamini,CEO Appointed: 2013 (ex-officio board member)

NELSON MANDELA BAY SCIENCE & TECHNOLOGY CENTRE: UITENHAGE

UDDI 2013/14 ANNUAL REPORT

Chief Executive Of f icer’s

REPORT

UDDI 2013/14 ANNUAL REPORT

Chie f Executive O f f icer’s REPORT

The 2013/14 financial year was the beginning of an exciting phase for the UDDI which laid bare the foundation and the basis for a pronounced and maximum development impact. The beginning of the review period was a significant milestone in its own right, not least because it came exactly ten years after the UDDI was established to redefine the socio-economic character of the Uitenhage and Despatch communities. The period under review thus provided the organisation with sufficient analytical tools to conduct an honest and reflective appraisal of the UDDI’s performance and its impact in the first decade of its existence. With the benefit of hindsight, the organisation embarked on a rigorous re-evaluation of its human, financial and physical assets to position these for improved efficiency, efficacy and sustained long-term growth. This process, endorsed by the Board of Directors, led to a strategy review process that sought to position the UDDI as a leader in socio-economic development in the Nelson Mandela Bay region. The strategy sought to redefine the UDDI’s role in economic development by exploiting internal and external efficiencies that form the central cog of energised socio-economic redress. ORGANISATIONAL STABILITY Furthermore, with the arrival of a new Chief Executive Officer in the second quarter of the financial year, the board was acutely aware that there were pressing matters which required a strategy review that would align resource allocation to areas that matched the strengths of individual team members. The first task of the Chief Executive Officer was therefore to stabilise the organisation to improve performance as well as close gaps in organisational capacity to ensure that the strategy is effectively resourced. STRATEGY REVIEW Strategy is key to performance, and subsequently a five-year corporate strategy was crafted to stabilise in the short-term and effect a turnaround in the long-term. Through this strategy process, the UDDI identified five overarching strategic goals to facilitate alignment with strategic initiatives. These goals include stimulating economic growth, investment and supporting entrepreneurship as well as contributing to the social upliftment of the community through education and training. As a collective, these strategic goals form the core foundation of the UDDI’s strategic posture.

UDDI 2013/14 ANNUAL REPORT

PATRICIA DOLLANE CHAMBERS DLAMINI CHIEF EXECUTIVE OFFICER

UDDI 2013/14 ANNUAL REPORT

In addition, three long-term strategic focus areas were identified which should play a central role in the attainment of organisational goals. These include town regeneration which should lead to the enhancement of urban areas, and the creation of a vibrant environment that is competitive and enhances social cohesion. Enterprise development on the other hand will be used as a tool to advance business incubation through the establishment of small, micro and medium-sized enterprises (SMMEs) while providing support packages, capacity building, new business solutions, investment opportunities and markets. Furthermore, education, training and skills development should lead to the provision of a unique, exciting curriculum and education experiences for educators and learners in science, technology, engineering and mathematics (STEM) while incorporating research and development initiatives benefitting the broader community. All this work will be achieved at the back of solid corporate governance and organisational development as well as financial prudence. This should find further expression in the promotion of systems and processes that promote accountability and transparency through governance and considered policy arrangements. The strategy also recognises that it is incumbent upon the organisation to effectively utilise available resources for an enhanced development impact in the face of continuing fiscal constraints. EMPOWERING HUMAN CAPITAL However, at the epicentre of the strategy review process lay the acknowledgement that it is empowered, competent and sufficiently-resourced human capital that would bring the objectives of the new strategy into successful fruition. Furthermore, an enhanced focus on the effective management of strategic resources, building innovative teams and being a great place of work while establishing efficient business processes were identified as necessary ingredients for an effective strategy delivery plan. There was also emphasis placed on improving organisational efficiencies, reviewing existing policies and frameworks such as human resources and financial management for relevance and effectiveness. As such, the review process placed particular emphasis and an informed demand that human capital be appropriately placed and matched to suitable roles. It also required the recruitment of personnel in key management positions who are best equipped to rollout the envisaged strategic trajectory. I am therefore pleased to report that two senior management roles have been filled in key strategic focus areas with experienced resources who have taken active steps to effect what is undoubtedly a demanding and overwhelming development mandate. Wandisile Makwabe has thus been appointed as UDDI Project Manager to oversee development projects. The Project Management Unit possesses adequate capacity and his role is to strengthen the unit and position it at the centre of the UDDIâ&#x20AC;&#x2122;s town regeneration efforts. Ayanda Ndinise was also appointed as Enterprise Development Manager. He now has the formidable task of crafting and delivering an effective SMME strategy that should lay the basis for the development of a solid, empowering, innovative and competitive entrepreneurial culture in the Uitenhage-Despatch region, and the broader Nelson Mandela Bay area.

UDDI 2013/14 ANNUAL REPORT

STRATEGIC PARTNERSHIPS During the strategy review process, a conceited effort was made to ensure the strategy remained relevant within the context of broader development plans championed by national and provincial government. As such, the National Development Plan imperative of increasing the number of students eligible to study towards maths and science-based degrees finds expression in the UDDI strategy as it puts special emphasis on programmes geared to assist leaners in STEM education. Similarly, diversifying the provincial manufacturing base is a key component of the Eastern Cape Provincial Growth and Development Plan (PGDP). Hence the promotion of entrepreneurship and enterprise development, for example, is one of the tools prioritised by the UDDI to accelerate the growth and development of the region. In addition, the strategy review process included a protracted consultation with a range of key stakeholder groupings and communities on whose behest the UDDI serves. There was a bold attempt to further strengthen and crystalise the UDDIâ&#x20AC;&#x2122;s relationship with its primary funder through adequate involvement in its strategy formulation exercise. This process unfolded with the hope that UDDI programmes and socioeconomic interventions would find resonance and alignment with the Integrated Development Plan and some other development strategies of the Nelson Mandela Bay Metropolitan Municipality for relevance. As such, the UDDI is solidifying its close working relationship with the metro through regular engagements to update them on performance and status of projects as well as challenges. In this regard, in the period under review, the UDDI introduced its strategy to stakeholders at its first ever stakeholder breakfast. This was a new platform for the UDDI which it used to facilitate community buy-in and forge collective ownership of the three-year organisational strategy. The pillar of the UDDIâ&#x20AC;&#x2122;s engagements with key stakeholders is based on open dialogue and free information sharing as evidenced in the crafting and adoption of its strategy.

TWO SENIOR

MANAGEMENT ROLES HAVE BEEN FILLED

IN KEY STRATEGIC

FOCUS AREAS WITH EXPERIENCED

RESOURCES UDDI INTRODUCED

ITS STRATEGY

TO STAKEHOLDERS AT ITS FIRST EVER

STAKEHOLDER

BREAKFAST

UDDI 2013/14 ANNUAL REPORT

OPERATIONAL PERFORMANCE With these processes in motion, the UDDI took the first steps toward assuming the posture of a leader of effective socio-economic development in the region. I am delighted to report that the UDDI has generated solid and encouraging returns in the period under review. One of the main highlights was the UDDI’s Nelson Mandela Bay Science and Technology Centre which has continued to spread its reach to an increasing number of learners of school-going age to build an enthusiasm and affinity to mathematics, science, technology, engineering and mathematics (STEM) education. The science and technology centre offers in-house and outreach programmes that target learners and educators whilst extending to community members. The in-house programme entails educational enhancing activities which cover a variety of topics. The topics are delivered in the centre’s facilities throughout the year coupled with demonstrations to capture the attention of young learners and educators alike. Furthermore, exhibitions are utilised to support the theoretical background provided in structured lessons. 47

82 558 1,096

Grade 11 revision programme Science expo Holiday programme

3,005 2,418

School group tours Curriculum lessons Science festival Outreach programme

2,437

For example, a total of 64 schools were adopted and benefitted from the in-house and outreach programmes. Schools that have benefitted from this programme include those who experience serious challenges in accessing science and technology infrastructure. In addition, the centre provides curriculum aligned lessons to boost learner performance in science and mathematics. A total of 47 schools were reached, benefitting 2,418 learners. A total of nine schools were reached by the centre’s grade 11 revision programme reaching 47 learners in the process. The holiday programme reached 558 children. Through its outreach programme, the centre reached 35 schools. With the acquisition of a vehicle in the second quarter of the year, more schools were visited than anticipated reaching a total of 3,005 learners.

UDDI 2013/14 ANNUAL REPORT

I am also delighted to report that partnerships with government, institutions of higher learning and the private sector have been strengthened in the review period. These include partnerships with Volkswagen Group South Africa (VWSA), the provincial Department of Education, Nelson Mandela Bay Tourism, national Department of Science and Technology (DST) and its entity SAASTA (the South African Agency for Science and Technology Advancement), as well as the Southern African Association of Science and Technology Centres (SAASTEC). As a result of the UDDIâ&#x20AC;&#x2122;s ongoing relationship with DST, the department committed an annual injection of R500,000 towards the operations of the science and technology centre. As such, nine previously unemployed graduates benefitted from the funding in the review period as these youths received fixed-term employment as science communicators. In 2013/14, the UDDI also implemented projects which either possess an infrastructural, agricultural production and/or social upliftment impact through its development projects. Accordingly, the UDDI implemented the Expanded Public Works Programme (EPWP) heritage site maintenance project, the UitenhageDespatch non-organisational (NGO) support project, as well as the UDDI Greening Initiative. A total of R2 million was invested in the EPWP heritage site maintenance project in the period under review. The programme was implemented in partnership with the metroâ&#x20AC;&#x2122;s Arts and Culture and Extended Public Works departments. The aim of the project was to provide jobs and skills development opportunities to vulnerable members of the community. An investment of R2.8 million was pumped into the UitenhageDespatch NGO support project. A total of 32 NGOs with more than 250 beneficiaries received support from this programme implemented in partnership with the Independent Development Trust (IDT). The programme also supported staff in the form of volunteers who were paid stipends.

A TOTAL OF

R2 MILLION WAS INVESTED IN

THE EPWP

HERITAGE SITE MAINTENANCE

PROJECT THE UDDI

CONVERTED ILLEGAL

DUMPSITES INTO

VEGETABLE PRODUCING

AND RECYCLING

UNITS KNOWN AS

ECO-HUBS

In partnership with the Department of Economic Development, and Environmental Affairs and Tourism (DEDEAT) and the metro, the UDDI converted illegal dumpsites into vegetable producing

UDDI 2013/14 ANNUAL REPORT

and recycling units known as eco-hubs. Community members were appointed as green ambassadors and trained in tree planting and vegetable production. Three eco-hubs are located at the Khayamnandi township of Despatch, Kwa-Langa township of Uitenhage and the Wells Estate township of Port Elizabeth. A total of 66 community members were trained and exposed to job opportunities. A funding proposal to develop the social development sector to support NGOs within the UitenhageDespatch area was submitted to the IDT while a funding proposal to develop the agricultural and environmental sectors was submitted to DEDEAT. IDT approved R2.8 million and DEDEAT approved R1.8 million. A total of 133 jobs were created in the built-environment, agricultural and environmental sectors. More than half of the beneficiaries were exposed to accredited training on governance and business registration, and basics of the building industry. FUTURE OUTLOOK Looking to the future, these initiatives should continue to position the organisation as a leader in the development space by playing a leading facilitation and advocacy role to bring about the desired change. The UDDI aims to continue shaping and influencing economic activities, policy, engagements, conversations for the direct benefit and empowerment of the Uitenhage-Despatch region and the broader Nelson Mandela Bay area. The UDDI continues to engage in meaningful conversations with its various stakeholders that have a direct and indirect interest in the work of the UDDI in order to leverage off their individual capabilities for the further development of the region. The organisation will also further seek the wise counsel of the people of the Uitenhage-Despatch region to steer the organisation toward sustained growth and efficacy. APPRECIATION I would like to express my gratitude to the Board of Directors for its considered counsel which should continue to position the UDDI at the forefront of catalytic socio-economic imperatives. I would like to extend my gratitude to the UDDI staff who have worked tirelessly to ensure that we effectively execute our stated mandate. Their support and determined resolve to effect meaningful change is appreciated. I would also like to express my sincere appreciation to our partners and funders who have thrown their weight behind the UDDIâ&#x20AC;&#x2122;s quest to assume the posture of a leader in socio-economic development in the Nelson Mandela Bay region. PATRICIA DOLLANE CHAMBERS DLAMINI CHIEF EXECUTIVE OFFICER

UDDI 2013/14 ANNUAL REPORT

The

STRATEGY REVIEW PROCESS

included a PROTRACTED

CONSULTATION with a range of KEY STAKEHOLDER

GROUPINGS AND COMMUNITIES ON WHOSE BEHEST THE UDDI SERVES.

UDDI 2013/14 ANNUAL REPORT

Programme performance REPORT

UDDI 2013/14 ANNUAL REPORT

TO BE A DEVELOPMENT AGENCY

for the sustainable socio-economic growth of the Uitenhage and Despatch communities and the broader Nelson Mandela Bay area, the

UDDI renders a variety of services

related to the following operational areas:

Town regeneration Enterprise development Education, training and skills development

UDDI 2013/14 ANNUAL REPORT

PROGRAMME PERFORMANCE REPORT

Town regeneration Through its town regeneration programme, the UDDI aims to enhance urban and township areas by creating a vibrant environment that is competitive and enhances social cohesion. The UDDIâ&#x20AC;&#x2122;s town regeneration programme encompasses the eco-hub model, infrastructure development as well as community development.

UDDI 2013/14 ANNUAL REPORT

TOWN REGENERATION 2013/14 OUTPUTS AND SERVICE DELIVERY TRENDS

PERFORMANCE INDICATORS

TARGET

ACTUAL

Undertake new physical infrastructure projects

Design, develop and implement two new physical infrastructure projects by year-end

• Uitenhage Aerodrome: R500,000 approved by NMBM to update the aerodrome feasibility study • Phase 2 development of the NMB Science & Technology Centre

The hold up with Phase 2 development of the NMB Science & Technology Centre has been due to the private sale agreement which was not finalised during the review period. Consultative meetings with the private land buyer and NMBM were held during 2013/14.

Conduct at least two feasibility studies on potential growth sectors

Two feasibility studies by year-end

Funding for aerodrome feasibility study approved by NMBM

Not achieved

Expend R1.5 million on town enhancement projects

Raise R1.5 m for town enhancement projects

• Collaborated with NMBM’s EPWP and arts and culture departments • A sum of R1.5m from the metro secured for the heritage site maintenance project • Project involved the renovation of old dilapitated buildings as part of the tourism heritage route project • A total of 12 heritage sites were rehabilitated and handed over to NMBM

Achieved

UDDI 2013/14 ANNUAL REPORT

VARIANCE AND COMMENTS

LANGA MEMORIAL: UITENHAGE

UDDI 2013/14 ANNUAL REPORT

TOWN REGENERATION 2013/14 OUTPUTS AND SERVICE DELIVERY TRENDS PERFORMANCE INDICATORS

VARIANCE AND COMMENTS

TARGET

ACTUAL

Expend R1.5 million on township regeneration initiative

Raise R1.5m for township regeneration initiative

• Collaborated with DEDEAT • A sum of R1.8m capital investment into eco-hubs in Uitenhage and Despatch township from the department • Khayamnandi Eco-hub is fully functional and ecohubs in Despatch are under construction

Achieved

Skills development

Train 100 people on new skills

A total of 67 beneficiaries were provided with accredited training on governance and business registration, and basics of the building industry

The aim is to improve the 67% success rate of 2013/14

New job opportunities created

Create 100 new job opportunities

A total of 133 jobs were created as follows: • Khayamnandi Eco-hub: 50 • Middle Street Eco-hub: 16 • Expanded Public Works Programme: 67

Achieved

Submit funding applications to support sector development projects to prospect funders

Submit two funding applications to support sector development projects to funders

• A sum of R2.1 m secured from IDT to support NGOs within the Uitenhage-Despatch area • A total of R1.8m received from DEDEAT for eco-hubs

Achieved

UDDI 2013/14 ANNUAL REPORT

RECEIVED SUPPORT FROM THE UDDI'S

NGO SUPPORT PROGRAMME IN PARTNERSHIP WITH THE

INDEPENDENT

DEVELOPMENT TRUST

UDDI 2013/14 ANNUAL REPORT

Education, training & skills development The UDDIâ&#x20AC;&#x2122;s focus in this area mainly targets educators and learners in STEM (science, technology, engineering and mathematics) through a unique, exciting curriculum and educational experience while incorporating research and development initiatives benefitting the broader community.

UDDI 2013/14 ANNUAL REPORT

EDUCATION, TRAINING & SKILLS DEVELOPMENT 2013/14 OUTPUTS AND SERVICE DELIVERY TRENDS

PERFORMANCE INDICATORS

TARGET

ACTUAL

VARIANCE AND COMMENTS

Host industry conferences/events

Two events reaching 32 schools

• Scifest Africa

Achieved

• Southern African Association for Energy Efficiency Conference

Number of higher education opportunities for students interested in maths, science and technology careers

Establish baseline

• Identified ten high schools offering maths and science • Established a policy for the education support programme

Achieved

Partnerships with the Department of Education, institutions of higher learning and private sector

Establish two working partnerships established that support the initiatives of the centre

Formal partnerships established with the following: • Department of Science and Technology (DST) • Department of Education • VWSA • Coega Development Corporation

Achieved

UDDI 2013/14 ANNUAL REPORT

EDUCATION, TRAINING & SKILLS DEVELOPMENT 2013/14 OUTPUTS AND SERVICE DELIVERY TRENDS (IN-HOUSE & OUTREACH PROGRAMMES)

PERFORMANCE INDICATORS

TARGET

ACTUAL

Number of schools participating in centre programmes

Ten schools to be part of the in-house and outreach programmes

A total of 64 schools adopted and serviced

Not achieved. Although ten schools were selected, nine schools sent learners to attend.

Number of education support programmes

Develop and implement support programmes for learners

• Grade 11 revision programme: 9 schools • Holiday programme: 558 learners • School group tours: 10 schools • Curriculum aligned lessons: 47 schools • Outreach programme: 35 schools

Achieved

UDDI 2013/14 ANNUAL REPORT

VARIANCE AND COMMENTS

DST’S FINANCIAL INJECTION

OF R500,000 PER ANNUM RESULTED IN THE

EMPLOYMENT

OF NINE SCIENCE COMMUNICATORS

WHO WERE DRAWN FROM A POOL OF UNEMPLOYED GRADUATES IN THE REGION

UDDI 2013/14 ANNUAL REPORT

PROGRAMME PERFORMANCE REPORT

Enterprise development The enterprise development programme is used as a tool to advance business incubation through multi-sector support pages for small enterprises, accredited training, mentorship, networking and access to markets, introduction to new business solutions and unlocking investment opportunities.

UDDI 2013/14 ANNUAL REPORT

ENTERPRISE DEVELOPMENT 2013/14 OUTPUTS AND SERVICE DELIVERY TRENDS

PERFORMANCE INDICATORS

VARIANCE AND COMMENTS

TARGET

ACTUAL

Recruit personnel to rollout enterprise development initiatives

Appoint Enterprise Development Manager

Enterprise Development Manager appointed in the last quarter of 2013/14

Achieved

Develop enterprise development strategy

Conduct environmental analysis (internal and external) as input for the strategy

Environmental analysis completed by year-end

Achieved

UDDI 2013/14 ANNUAL REPORT

SMME STRATEGY SHOULD LAY THE BASIS FOR THE DEVELOPMENT

OF A SOLID, EMPOWERING, INNOVATIVE AND COMPETITIVE

ENTREPRENEURIAL CULTURE IN THE UITENHAGE-DESPATCH REGION

UDDI 2013/14 ANNUAL REPORT

KHAYAMNANDI ECO-HUB: DESPATCH ECO-HUBS ENCOURAGE SUSTAINABLE USE OF NATURAL RESOURCES

UDDI 2013/14 ANNUAL REPORT

Core TEAM PATRICIA DOLLANE CHAMBERS DLAMINI - Chief Executive Officer The period under review provided the organisation with sufficient analytical tools to conduct an honest and reflective appraisal of the UDDIâ&#x20AC;&#x2122;s performance and its impact in the first decade of its existence. With the benefit of hindsight, the organisation embarked on a rigorous re-evaluation of its human, financial and physical assets to position these for improved efficiency, efficacy and sustained long-term growth. This process, endorsed by the Board of Directors, led to a strategy review process that sought to position the UDDI as a leader in socio-economic development in the Nelson Mandela Bay region.

RICHARD GIBSON - Chief Financial Officer The finance department is at the heart of the business as it ensures that adequate controls are in place to maintain the smooth running of daily operations while complying with applicable legislation and mitigating financial risk. As a non-profit organisation that largely deals with grant and donor funders, we strive to responsibly manage the organisationâ&#x20AC;&#x2122;s finances through ensuring that adequate controls are instigated. These efforts have not been unrewarding as the organisation was awarded an unqualified audit for the 2013/14 financial year; a fourth in a row for the UDDI.

UDDI 2013/14 ANNUAL REPORT

WANDISILE MAKWABE - Project Manager The implementation of a new project model which tackles sustainable development of the Uitenhage-Despatch communities has been a notable highlight for the Project Management Unit. With buy-in from the board and stakeholders, particularly the communities we serve and leadership from the Nelson Mandela Bay Municipality; we began implementing the model which puts emphasis on the correct selection of beneficiaries, securing of land, and the appointment of a project steering committee. As such, UDDI initiatives in key priority areas, namely; town regeneration, enterprise development, and education, training and skills development have been realigned to ensure maximum impact to the community and local economy.

AYANDA NDINISE - Enterprise Development Manager In addressing the challenges faced by enterprises within the UitenhageDespatch region, it became imperative for the UDDI to develop an Integrated SMME Development Strategy to drive the activities of the newly-established Enterprise Development Unit. The strategy is founded on an incubation framework entrenched in three key elements, namely: information awareness; skills development and capacity building; as well as opportunities and market linkages. When the strategy is implemented in the new financial year, the UDDI will start to guide and direct SMME interventions that will ensure a positive contribution to the regionâ&#x20AC;&#x2122;s socioeconomic development.

UDDI 2013/14 ANNUAL REPORT

During the 2013/14 financial year, the human resources function was managed by the Chief Executive Officer. EMPLOYMENT EQUITY Total number of full-time employees in each occupational category as at 30 June 2014. LEVEL

EXECUTIVE

TOTAL

MANAGEMENT

STAFF

TOTAL

1 1 0

In the review period, the UDDI also employed 14 staff members on fixed and/or short-term contracts. This comprised nine science communicators and five general workers. TRAINING AND SKILLS DEVELOPMENT Several staff members benefited from the board-approved study allowance. The table below shows staff members who took advantage of the opportunity and enrolled with institutions of higher learning in the review period.

POSITION

ENROLLED STUDIES

Chief Executive Officer

Masters in Business Administration

Project Manager

Masters in Sustainable Agriculture

Project Coordinator-Infrastructure

Project Management

Project Coordinator-Sustainable Agriculture

Project Management

Curriculum and Education Officer

Basics of Project Management

Financial Administrator

ICB Payroll and Monthly SARS Returns

UDDI 2013/14 ANNUAL REPORT

ORGANOGRAM

CHIEF EXECUTIVE OFFICER

PERSONAL ASSISTANT TO THE CEO (VACANT)

ENTERPRISE DEVELOPMENT MANAGER

PROJECT MANAGER

FINANCIAL ADMINISTRATOR

PROJECT COORDINATOR: INFRASTRUCTURE

PROJECT COORDINATOR: SUSTAINABLE AGRICULTURE

PROJECT COORDINATOR: SOCIAL DEVELOPMENT

INCUBATION COORDINATOR: (VACANT)

SCIENCE CENTRE MANAGER

CURRICULUM & EDUCATION OFFICER

OUTREACH & COMMUNITY PROGRAMMES

UDDI 2013/14 ANNUAL REPORT

Corporate GOVERNANCE

The UDDI is committed to good corporate citizenship and organisational integrity in the running of its affairs. The organisation further subscribes to the corporate governance principles set out in the Municipal Finance Management Act (MFMA) and the Companies Act. This commitment gives the shareholder, the Nelson Mandela Bay Municipality, as well as beneficiaries and stakeholders with the comfort that the UDDI’s affairs are being managed in an ethical manner. BOARD COMPOSITION The UDDI’s memorandum of incorporation provides that there shall be a minimum of three directors comprised as follows: The incorporators of the UDDI; The Chief Executive Officer shall be an ex-officio Director of the Company, as a consequence of him/her holding such office or title; and Any other person who supports the objectives of the UDDI may be admitted to serve on the Board of Directors. As at 30 June 2014, the board comprised eight directors, the majority (seven) of whom are non-executive, including the Chairperson. The Chairperson and Chief Executive Officer’s roles and responsibilities are separate. The Chairperson, Nonkqubela Maliza, is an independent non-executive director. ROLE, RESPONSIBILITIES AND AUTHORITY OF THE BOARD The business and affairs of the UDDI are managed under the direction of the board which has the authority to perform any of the functions listed hereunder: Review and adopt the strategic plans of the UDDI; Monitor operational performance and management of the UDDI. This includes the UDDI’s bi-annual evaluation results;

UDDI 2013/14 ANNUAL REPORT

Determine policy and processes to ensure the integrity of the UDDI: - Risk management and internal controls; - Communication; - Director selection, orientation and evaluation; - Delegation framework. Review and approve the: - Vision, mission and goals of the UDDI; - Annual plans and budget of the UDDI; - Financial reports and audit findings; - Human resource plans; - Chief Executive Officerâ&#x20AC;&#x2122;s job description, performance agreement and remuneration. Appoint auditors and members of the Audit and Risk Committee; and Appoint new board members. BOARD MEETINGS: ATTENDANCE REGISTER BOARD MEMBER

22 AUG 2013

04 DEC 2013

27 MAR 2014

23 APR 2014

26 JUN 2014

Ms Nonkqubela Maliza Mr Zwai Bala Ms Patricia Dollane Chambers Dlamini Mr Paul Sherman Ms Fayruz Abrahams Mr Chuma Mbande Mr Msokoli Ntombana Mr Pindi Vena

UDDI 2013/14 ANNUAL REPORT

DIRECTORSâ&#x20AC;&#x2122; RESPONSIBILITY STATEMENT The directors are responsible for the preparation and fair presentation of the annual financial statements of the Uitenhage Despatch Development Initiative NPC, comprising the statement of financial position at 30 June 2014, and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa. In addition, the directors are responsible for preparing the directorsâ&#x20AC;&#x2122; report. The directors are also responsible for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and for maintaining adequate accounting records and an effective system of risk management as well as the preparation of the supplementary schedules included in these financial statements. The directors have made an assessment of the ability of the company to continue as a going concern and have no reason to believe that the business will not be a going concern in the year ahead. The auditor is responsible for reporting on whether the financial statements are fairly presented in accordance with the applicable financial reporting framework. APPROVAL OF ANNUAL FINANCIAL STATEMENTS The annual financial statements of the Uitenhage Despatch Development Initiative NPC, as identified in the first paragraph, were approved by the Board of Directors on 4 November 2014 and signed by

___________________ P Dlamini Authorised Director

UDDI 2013/14 ANNUAL REPORT

___________________ NH Maliza Authorised Director

NELSON MANDELA BAY SCIENCE & TECHNOLOGY CENTRE: UITENHAGE UDDI 2013/14 ANNUAL REPORT

UDDI 2013/14 ANNUAL REPORT

The directors submit their report for the year ended 30 June 2014. 1. REVIEW OF ACTIVITIES The company was established to facilitate sustainable development of the north-western region of the biggest metropolitan in the Eastern Cape province, the Nelson Mandela Bay Municipality (NMBM). The agency advocates for the socio-economic upliftment of the Uitenhage and Despatch areas, and the broader Nelson Mandela Bay Metro, by influencing economic activity and policy engagements with the public and private sectors for the direct benefit and empowerment of these communities. Having reviewed the company’s cash flow forecast for the year to 30 June 2015, and in light of this review and the current financial position, the directors are satisfied that the company has, or has access to, adequate resources to continue its operational existence in future. The Board of Directors believes that ongoing financial support from the company’s main funder, NMBM, and other projects’ funders namely; the Department of Science and Technology’s South African Agency for Science and Technology Advancement (SAASTA), the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), and the Expanded Public Works Programme (EPWP) will enable the company to continue operations for the foreseeable future. For these reasons the Board of Directors is confident in presenting the annual financial statements of the company on a going concern basis. 2. GOING CONCERN The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. 3. EVENTS AFTER THE REPORTING PERIOD The directors are not aware of any matter or circumstance arising since the end of the financial year.

UDDI 2013/14 ANNUAL REPORT

4. DIRECTORS' INTEREST IN CONTRACTS No material contracts in which the directors have an interest were entered into in the current year. 5. DIRECTORS The directors of the company during the year and to the date of this report are as follows: NAME N H Maliza P A Vena P R Sherman F Abrahams M L Bala C Mbande M Ntombana P Dlamini

CHANGES

Appointed 4 December 2013

6. SECRETARY The secretary of the company is R P Gibson of the Uitenhage Despatch Development Initiative NPC: Business address First Floor, Central Hub NMB Logistics Park Jagtevlakte Uitenhage Postal address P O Box 1072 Uitenhage 6230 7. AUDITORS KPMG have been appointed in accordance with section 90 of the Companies Act 71 of 2008.

UDDI 2013/14 ANNUAL REPORT

TO THE MEMBERS OF THE UITENHAGE DESPATCH DEVELOPMENT INITIATIVE NPC We have audited the financial statements of the Uitenhage Despatch Development Initiative NPC, which comprise the statement of financial position at 30 June 2014, and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, as set out on pages 69 to 93. DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The company’s directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

UDDI 2013/14 ANNUAL REPORT

OPINION In our opinion, these financial statements present fairly, in all material respects, the financial position of the Uitenhage Despatch Development Initiative NPC at 30 June 2014, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa. OTHER MATTER The supplementary schedules set out on pages 94 to 107do not form part of the financial statements and are presented as additional information. We have not audited these schedules and accordingly we do not express an opinion on them. OTHER REPORTS REQUIRED BY THE COMPANIES ACT As part of our audit of the financial statements for the year ended 30 June 2014, we have read the Directors’ Report, for the purpose of identifying whether there are material inconsistencies between this report and the audited financial statements. The Directors’ Report is the responsibility of the directors. Based on reading the Directors’ Report we have not identified material inconsistencies between this report and the audited financial statements. However, we have not audited this report and accordingly do not express an opinion on this report. KPMG Inc.

Per C Batchelor Chartered Accountant (SA) Registered Auditor Director 4 November 2014

UDDI 2013/14 ANNUAL REPORT

Uitenhage Despatch Development Initiative NPC Annual financial statements for the year ended 30 June 2014 The reports and statements set out below comprise the annual financial statements presented to the members INDEX PG NO. Statement of Financial Position 69 Statement of Comprehensive Income 70 Statement of Changes in Equity 70 Statement of Cash Flows 71 Accounting Policies 72 Notes to the Financial Statements 80 The following supplementary information does not form part of the financial statements and is unaudited: Detailed Statement of Comprehensive Income Detailed Statement on Externally Funded Projects Detailed Statement of the NMB Science and Technology Centre Operations

94 96 107

PREPARATION OF ANNUAL FINANCIAL STATEMENTS The financial statements of the Uitenhage Despatch Development Initiative NPC have been audited in compliance with s30 of the Companies Act. Richard Gibson (CFO) from the Uitenhage Despatch Development Initiative NPC prepared the annual financial statements. These financial statements for the year ended 30 June 2014 were published on 4 November 2014.

UDDI 2013/14 ANNUAL REPORT

STATEMENT OF FINANCIAL POSITION

2014

Notes

Restated 2013

2013

2 714 330

3 405 888

297 797

Loan receivable

Trade and other receivables

242 551

200 019

Cash and cash equivalents

6 494 843

5 274 832

6 737 394

5 474 851

9 451 724

8 880 739

5 772 648

326 000

3 370 798

2 131 900

3 696 798

2 457 900

86 934

603 073

308 170

53 995

2 722 018

2 919 644

2 375 840

3 108 091

5 754 926

6 335 905

3 227 814

5 754 926

6 422 839

3 314 748

9 451 724

8 880 739

5 772 648

Assets Non-current assets Property, plant and equipment Current assets

Total assets Equity and liabilities Equity Development fund Retained surpluses

Liabilities Non-Current liabilities Operating lease liability Current liabilities Trade and other payables

Operating lease liability Externally funded projects Externally funded projects - asset accrual

Total liabilities Total equity and liabilities

UDDI 2013/14 ANNUAL REPORT

STATEMENT OF COMPREHENSIVE INCOME

2014

Notes

Grants received Other income

Operating expenses

Restated 2013

6 195 930

4 618 800

1 166 473

906 072

(6 433 578)

(5 579 720)

Operating surplus/(deficit)

928 825

(54 848)

Finance income

310 078

304 539

Finance costs

(5)

(14 612)

1 238 898

235 079

Other comprehensive income

Total comprehensive income

1 238 898

235 079

Net surplus for the year

STATEMENT OF CHANGES IN EQUITY

Development fund

Retained surpluses

Total equity

Balance at 01 July 2012

326 000

1 896 821

2 222 821

Net surplus for the year

235 079

326 000

2 131 900

2 457 900

1 238 898

326 000

3 370 798

3 696 798

Balance at 30 June 2013 Net surplus for the year Balance at 30 June 2014

UDDI 2013/14 ANNUAL REPORT

STATEMENT OF CASH FLOWS 2014

2013

1 238 898

235 079

Depreciation

1 006 186

437 169

Finance income

(310 078)

(304 539)

Notes

Cash flows from operating activities Profit before taxation Adjustments for:

Finance costs

14 612

Impairment of loan receivable

274 740

(32 939)

(2 385)

1 902 072

654 676

Trade and other receivables

(42 532)

1 935 790

Trade and other payables

294 903

121 434

Externally funded projects - asset accrual

(842 382)

(272 616)

Cash generated from operating activities

1 312 061

2 439 284

310 078

279 563

Lease smoothing

Changes in:

Finance income Finance costs Net cash from operating activities

(5)

(14 612)

1 622 134

2 704 235

(314 628)

(21 992)

Cash flows from investing activities Acquisition of property, plant and equipment

Externally funded projects –assets accrual Net cash used in investing activities

110 131

(204 497)

(21 992)

3 839 897

1 591 543

Cash flows from financing activities Externally funded project advances received Externally funded project disbursements

(4 767 820)

Net cash used in financing activities

(197 626)

Net increase/(decrease) in cash and cash equivalents

1 220 011

( 494 034)

Cash and cash equivalents at 1 July

5 274 832

5 768 866

6 494 843

5 274 832

Cash and cash equivalents at 30 June

UDDI 2013/14 ANNUAL REPORT

ACCOUNTING POLICIES 1. Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and the requirements of the Companies Act of South Africa. The financial statements have been prepared on the historical cost basis, and incorporate the principal accounting policies set out below. They are presented in South African Rands. These accounting policies are consistent with the previous period. 1.1 Property, plant and equipment The cost of an item of property, plant and equipment is recognised as an asset when: â&#x20AC;˘ it is probable that future economic benefits associated with the item will flow to the company; and â&#x20AC;˘ the cost of the item can be measured reliably. Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Property, plant and equipment is depreciated on the straight line basis over its expected useful lives to the estimated residual value. Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses. The useful lives of items of property, plant and equipment have been assessed as follows:

Item

Average useful life

Furniture and fixtures

6 years

Exhibits

3 - 6 years

Motor vehicles

4 years

Office equipment

6 years

IT equipment

3 years

Computer software

3 years

Laboratory equipment

3 years

Tools

3 years

Leasehold improvements

5 years

UDDI 2013/14 ANNUAL REPORT

The residual value, useful life and depreciation method of each asset is reviewed, and adjusted if appropriate, at the end of each reporting period. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying amount of another asset. The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or loss when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. 1.2 Financial instruments Classification The company classifies financial assets and financial liabilities into the following categories: • Loans and receivables • Financial liabilities measured at amortised cost Classification depends on the purpose for which the financial instruments were obtained / incurred and takes place at initial recognition. Classification is re-assessed on an annual basis, except for derivatives and financial assets designated as at fair value through profit or loss, which shall not be classified out of the fair value through profit or loss category. Initial recognition and measurement Financial instruments are recognised initially when the company becomes a party to the contractual provisions of the instruments. The company classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.

UDDI 2013/14 ANNUAL REPORT

Financial instruments are measured initially at fair value, except for equity investments for which a fair value is not determinable, which are measured at cost and are classified as available-for-sale financial assets. For financial instruments which are not at fair value through profit or loss, transaction costs are included in the initial measurement of the instrument. Subsequent measurement Loans and receivables are subsequently measured at amortised cost, using the effective interest method, less accumulated impairment losses. Financial liabilities at amortised cost are subsequently measured at amortised cost, using the effective interest method. Derecognition Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the company has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognised when the related obligation has been settled or discharged. Impairment of financial assets At each reporting date the company assesses all financial assets, other than those at fair value through profit or loss, to determine whether there is objective evidence that a financial asset or group of financial assets has been impaired. Impairment losses are recognised in profit or loss. Impairment losses are reversed when an increase in the financial asset's recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the financial asset at the date that the impairment is reversed shall not exceed what the carrying amount would have been had the impairment not been recognised. Where financial assets are impaired through use of an allowance account, the amount of the loss is recognised in profit or loss within operating expenses. When such assets are written off, the write off is made against the relevant allowance account. Subsequent recoveries of amounts previously written off are credited against operating expenses.

UDDI 2013/14 ANNUAL REPORT

Loans to companies These financial assets are classified as loans and receivables. Trade and other receivables Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The allowance recognised is measured as the difference between the assetâ&#x20AC;&#x2122;s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in profit or loss within operating expenses. When a trade receivable is uncollectable, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in profit or loss. Trade and other receivables are classified as loans and receivables. Trade and other payables Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value. 1.3 LEASES A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

UDDI 2013/14 ANNUAL REPORT

Operating leases - lessor Operating lease income is recognised as an income on a straight-line basis over the lease term. The difference between the amounts recognised as an income and the contractual receipts are recognised as an operating lease liability. This liability is not discounted. Operating leases â&#x20AC;&#x201C; lessee Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset. This asset is not discounted. 1.4 IMPAIRMENT OF NON-FINANCIAL ASSETS The company assesses at each end of the reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss. An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease. An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for assets may no longer exist or may have decreased. If any such indication exists, the recoverable amounts of those assets are estimated. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods.

UDDI 2013/14 ANNUAL REPORT

1.5 EMPLOYEE BENEFITS Short-term employee benefits Employee entitlements to annual leave are recognised when they accrue to the employees. An accrual is made for the estimated liability or receivable for annual leave as a result of services rendered by employees up to the balance sheet date. Defined contribution plans A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. The company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. The company has no further payment obligations once the contributions have been paid. Payments made to industry-managed (or state plans) retirement benefit schemes are dealt with as defined contribution plans where the company’s obligation under the schemes is equivalent to those arising in a defined contribution retirement benefit plan. 1.6 PROVISIONS Provisions are recognised when: • the company has a present obligation as a result of a past event; • it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and • a reliable estimate can be made of the obligation. The amount of a provision is the present value of the expenditure expected to be required to settle the obligation. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement shall be recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset. The amount recognised for the reimbursement shall not exceed the amount of the provision.

UDDI 2013/14 ANNUAL REPORT

1.7 REVENUE Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of value added tax. Finance income comprises interest income on funds. Interest income is recognised as it accrues in comprehensive income, using the effective interest method. Service fees included in the price of the product are recognised as revenue over the period during which the service is performed. Grant income and donations are recognised on an accrual basis in accordance with the substance of the relevant agreements. 1.8 EXTERNALLY FUNDED PROJECTS The company performs the role of both the principal and the agent in the management of various projects financed by the public and private sectors. Project income and expenditure incurred where the company manages projects in its capacity as principal, are credited or charged to profit or loss in the period in which such income or expenditure is incurred. Where the company is acting in its capacity as agent, funds received to be managed and distributed on future projects are recognised as a current liability in the statement of financial position on receipt. As project disbursements are incurred, it is set off against the liability. When losses are incurred on these projects, they are charged to profit or loss if the company does not have a contractual right to recoup the project loss from the financier. Once the project has come to an end, the remaining funds, if applicable, are transferred to unallocated projects funds.

UDDI 2013/14 ANNUAL REPORT

1.9 GOVERNMENT GRANTS AND DEFERRED INCOME Government grants are recognised when there is reasonable assurance that: â&#x20AC;˘ the company will comply with the conditions attaching to them; and â&#x20AC;˘ the grants will be received. Government grants are recognised as income over the periods necessary to match them with the related costs that they are intended to compensate. A government grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs is recognised as income of the period in which it becomes receivable. Government grants related to assets, including non-monetary grants at fair value, are presented in the statement of financial position by setting up the grant as deferred income. Grants related to income are presented as a credit in the profit or loss separately. When the conditions attached to government grants have been met and the grants have been received, they are recognised in profit or loss on a systematic basis over the periods necessary to match them with the related costs. When they relate to expenses or losses already incurred, they are recognised in profit or loss immediately. The unrecognised portion of a project at the reporting date, is presented as deferred income. Government grants are recorded as deferred income when they become receivable and are then recognised as income on a systematic basis over the periods necessary to match the grants to related costs, which they are intended to compensate.

UDDI 2013/14 ANNUAL REPORT

2. NEW STANDARDS AND INTERPRETATIONS 2.1 Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the company There are new or revised Accounting Standards and Interpretations in issue that are not yet effective. These include the following standards and interpretations that are applicable to the business of the entity and may have an impact on future financial statements: Standard / interpretation

Effective date: Periods beginning on or after

IAS 32

Offsetting Financial Assets and Financial Liabilities

1 January 2014

IAS 36

Recoverable amount disclosures for Non-financial Assets

1 January 2014

IAS 16 and IAS 38

Clarification of Acceptable 1 January 2016 Methods of Depreciation and Amortisation

IFRS 15

Revenue from contracts with customers

1 January 2017

IFRS 9

Financial Instruments

1 January 2018

UDDI 2013/14 ANNUAL REPORT

3. RISK MANAGEMENT Capital risk management The company’s activities are not funded through equity. Therefore its gearing is not a key indicator. Financial risk management The company’s activities expose it to a variety of financial risks: market risk (including cash flow interest rate risk), credit risk and liquidity risk. The company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the company’s financial performance. Risk management is carried out by management under policies approved by the directors. Liquidity risk The company’s financial liabilities compose of trade and other payables as disclosed in the statement of financial position. The financial liabilities will all mature in less than one year. Interest rate risk The company’s interest rate risk arises from funds held on call with financial institutions. The company manages its interest rate risk by negotiating the best possible interest rate with the relevant financial institutions. The company calculates the impact on profit and loss of a defined interest rate shift. The impact on posttax profit of a 1% shift would be a maximum increase of R 63 649 (2013: R50 855) or decrease of R63 649 (2013: R50 855), respectively. Credit risk Credit risk consists mainly of cash deposits, cash equivalents and trade debtors. The company only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party. The company has significant concentrations of credit risk, due to the majority of its funds being received from government institutions. The Nelson Mandela Bay Municipality is the company’s main debtor (refer note 6). Fair value estimation The nominal value less impairment provision of trade receivables and payables are assumed to approximate their fair values, due to their short-term nature.

UDDI 2013/14 ANNUAL REPORT

4. PROPERTY, PLANT AND EQUIPMENT

Cost

2014 Accumulated depreciation

Carrying value

Cost

2013 Accumulated depreciation

Carrying value

Furniture and fixtures

802 761

(344 114)

458 647

760 533

(229 682)

530 851

Motor vehicles

594 275

(240 881)

353 394

407 306

(150 653)

256 653

Office equipment

102 419

(69 595)

32 824

102 419

(55 495)

46 924

IT equipment

527 226

(369 525)

157 701

443 718

(295 583)

148 135

Computer software Leasehold improvements Exhibits

44 223

(39 854)

4 369

42 572

(37 094)

5 478

403 194

(336 032)

67 162

403 194

(255 393)

147 801

2 312 543

(764 992)

1 547 551

2 312 272

(190 440)

2 121 832

33 365

(14 809)

18 556

33 365

(3 687)

29 678

Tools

133 231

(59 105)

74 126

133 231

(14 695)

118 536

Total

4 953 237

(2 238 907)

2 714 330

4 638 610

(1 232 722)

3 405 888

Laboratory equipment

Reconciliation of property, plant and equipment – 2014

Opening balance

Depreciation

IAS 16 adjustment

Total

Furniture and fixtures

530 851

42 228

(114 432)

458 647

Motor vehicles

256 653

186 969

(90 228)

353 394

Office equipment IT equipment Computer software Leasehold improvements Exhibits Laboratory equipment

Additions

46 924

(14 100)

32 824

148 135

83 508

(72 969)

(973)

157 701

5 478

1 652

(2 761)

4 369

147 801

(80 639)

67 162

2 121 832

271

(456 877)

(117 675)

1 547 551

29 678

(11 122)

18 556

Tools

118 536

(3 381)

(41 029)

74 126

Total

3 405 888

314 628

(835 387)

(170 799)

2 714 330

UDDI 2013/14 ANNUAL REPORT

Reconciliation of property, plant and equipment – 2013

Furniture and fixtures Motor vehicles

Additions

Depreciation

IAS 16 adjustment

437 341

154 952

(106 335)

44 893

530 851

17 386

265 855

(29 148)

2 560

256 653

Opening balance R

Total

Office equipment

58 934

3 526

(15 536)

46 924

IT equipment

85 071

102 645

(55 080)

15 499

148 135

4 717

5 322

(4 561)

5 478

Computer software Leasehold improvements Exhibits Laboratory equipment

228 440

(80 639)

147 801

2 282 692

29 579

(525 875)

335 436

2 121 832

33 365

(3 687)

29 678

Tools

123 087

10 144

(1 407)

(13 288)

118 536

Total

3 271 033

572 023

(818 581)

381 413

3 405 888

5. LOAN RECEIVABLE 2014

Uitenhage Kwanobuhle Farm

Provision for impairment on loan

2013

524 504

(524 504)

2014

2013

137 115

90 946

16 231

6. TRADE AND OTHER RECEIVABLES

Trade receivables South African Revenue Services - VAT Other receivables

105 436

92 842

242 551

200 019

UDDI 2013/14 ANNUAL REPORT

7. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of:

Cash on hand Current accounts Call accounts

2014

2013

8 500

121 417

189 301

6 364 926

5 085 478

6 494 843

5 274 832

8. TRADE AND OTHER PAYABLES 2014

2013

Trade payables

379 877

46 372

Accruals

223 196

261 798

603 073

308 170

2014

2013

9. DEFERRED GRANT INCOME

Balance at the beginning of the year Additions

3 108 091

3 106 674

110 131

274 033

Released through the statement of comprehensive income

(842 382)

(272 616)

Balance at the end of the year

2 375 840

3 108 091

10. EXTERNALLY FUNDED PROJECTS Unrecoverable losses incurred on externally funded projects, managed by the company in an agency capacity, are absorbed and charged to profit and loss. External finance received from principals, not yet disbursed in respect of projects, is invested in cash and cash equivalents (Note 7). Interest income on such investments is credited to profit and loss. Once the project has come to an end, any remaining funds, if applicable, are transferred to unallocated project funds.

UDDI 2013/14 ANNUAL REPORT

At 30 June 2014 Auto Incubator

Cumulative project disbursements (net of absorbed losses)

Cumulative project advances

Transfer to unallocated project Funds

Project liability

200 000

59 504 849

64 575

Composting

228 000

(226 112)

1 888

Despatch Crafts Hub

420 000

(379 414)

40 586

1 800 000

(1 480 039)

319 961

955 334

(885 264)

70 070

Expanded Public Works Programme

2 000 000

(1 770 096)

229 904

Heritage maintenance

1 500 000

(1 331 998)

168 002

Independent Development Trust

2 982 105

(2 912 692)

69 413

Recycling

1 227 252

(569 952)

657 300

50 000

(46 416)

3 584

Tinarha Agricultural Tourism Initiative

4 600 000

(4 600 000)

Thubalabanthu Piggery (Peppadew)

2 507 293

(2 507 293)

Despatch Environmental Cluster EcoMile

Uitenhage Aerodrome

Uitenhage Street Carnival Ukulungisa Wood Manufacturing

956 015

(956 015)

1 616 548

(1 615 715)

833

4 967 818

(4 964 260)

3558

27 609 615

(27 168 356)

441 259

931 699

(945 001)

(13 302)

2 066 600

(2 058 530)

8 070

264 270

(42 850)

(221 420)

85 500

(102)

(85 398)

104 000

(130 504)

26 504

Science and Technology Centre - Exhibits - Construction - Education - Completion Beekeeping Essential oils Siyathemba Toilet Paper Mushroom Farming Kwanobuhle Youth Service Centre Gwebindlala Toilet Paper Manufacture Unallocated project funds

307 800

(13 512)

(294 288)

2 021 000

(1 955 881)

(65 119)

104 000

(87 404)

(16 596)

656 317

59 504 849

(56 782 831)

2 722 018

UDDI 2013/14 ANNUAL REPORT

Cumulative project advances

Cumulative project disbursements (net of absorbed losses)

Transfer to unallocated project Funds

Project liability

Auto Incubator

200 000

(135 425)

64 575

Composting

228 000

(226 112)

1 888

Despatch Crafts Hub

420 000

(379 414)

40 586

1 800 000

(1 335 512)

464 488

955 334

(885 264)

70 070

Expanded Public Works Programme

2 000 000

(1 727 394)

272 606

Recycling

1 227 252

(346 846)

880 406

50 000

(43 368)

6 632

Tinarha Agricultural Tourism Initiative

4 600 000

(4 600 000)

Thubalabanthu Piggery (Peppadew)

2 507 293

(2 507 293)

956 015

(956 015)

1 616 548

(1 615 715)

833

4 967 818

(4 948 459)

19 359

27 609 615

(27 168 356)

441 259

At 30 June 2013

Despatch Environmental Cluster EcoMile

Uitenhage Aerodrome

Uitenhage Street Carnival Ukulungisa Wood Manufacturing Science and Technology Centre - Exhibits - Construction - Education - Completion Beekeeping Essential oils

851 699

(868 366)

(16 667)

2 066 600

(2 049 123)

17 477

264 270

(42 850)

(221 420)

85 500

(102)

(85 398)

Siyathemba Toilet Paper

104 000

(130 504)

26 504

Mushroom Farming

307 800

(13 512)

(294 288)

Kwanobuhle Youth Service Centre

2 021 000

(1 955 881)

(65 119)

Gwebindlala Toilet Paper Manufacture

104 000

(87 404)

(16 596)

Independant Development Trust

722 208

(722 393)

(185)

656 317

55 664 952

(52 745 308)

2 919 644

Unallocated project funds

UDDI 2013/14 ANNUAL REPORT

11. FINANCIAL ASSETS BY CATEGORY 2014

Trade and other receivables Cash and cash equivalents

Loan and receivables

Total

242 551

6 494 843

6 737 394

Loan and Receivables

Total

2013

Trade and other receivables Cash and cash equivalents

200 019

5 274 832

5 474 851

12. FINANCIAL LIABILITIES BY CATEGORY The accounting policies for the financial instruments have been applied to the line items below: 2014 Financial liabilities at amortised cost

Trade and other payables

Total

603 073

Financial liabilities at amortised cost

Total

308 170

2013

Trade and other payables

UDDI 2013/14 ANNUAL REPORT

13. OTHER INCOME

2014

Commissions received Entrance fees Miscellaneous income Recoveries of project liabilities Rental income Venue hire Release to deferred income

2013

264 981

34 529

22 857

10 029

16 127

186 850

209 062

73 692

59 487

18 991

60 942

842 382

272 616

1 166 473

906 072

14. OPERATING SURPLUS/(DEFICIT) Operating surplus/(deficit) for the year s stated after accounting for the following: 2014

2013

349 493

346 955

1 006 186

437 169

2 819 135

3 579 157

2014

2013

Operating lease charges Premises - Contractual amounts Depreciation on property, plant and equipment

15. FINANCE INCOME Finance income Bank Loan to UKF Other

UDDI 2013/14 ANNUAL REPORT

310 078

279 500

24 976

310 078

304 539

16. FINANCE COST 2014

2013

Trade payables

South African Revenue Services

14 612

17. INCOME TAX The company is exempt from SA normal income tax in terms ofSection 10(1)(cN) of the Income Tax Act. Consequently no provision for SA normal income tax has been made in the financial statements.

18. AUDITORSâ&#x20AC;&#x2122; REMUNERATION 2014

2013

110 000

112 000

Prior year under provision

5 700

Other

67 140

110 000

184 840

Fees

19. RETIREMENT BENEFITS 2014

2013

43 571

110 262

Statement of comprehensive income charge for: Employer contributions

The company operates a defined contribution pension fund, ABSA Compak (an umbrella fund), which the majority of the UDDI employees belong to. The fund is subject to the Pension Fund Act, 1956 as amended. The fund is administered independently of the company.

UDDI 2013/14 ANNUAL REPORT

20. COMMITMENTS Operating leases â&#x20AC;&#x201C; as lessee (expense)

Minimum lease payments due - within one year - in second to fifth year inclusive

2014

2013

316 905

351 476

316 905

668 381

Operating lease payments represent rentals payable by the company for its office properties. The lease is for a term of five years with an option to automatically renew the lease for a further period.

21. RELATED PARTIES UDDI is the sole beneficiary of Uitenhage Despatch Development Trust (UDDT) Uitenhage Despatch Skills Development (UDSD) is 60% owned by UDDT Related party transactions

2014

2013

73 692

59 487

Transactions with UDSD Rental income received

Compensation to directors and other key management Key management personnel

1 443 443

1 083 824

22. DIRECTORSâ&#x20AC;&#x2122; FEES No fees were paid to the directors or any individuals holding a prescribed office during the year.

UDDI 2013/14 ANNUAL REPORT

23. PRIOR PERIOD ERROR The opening balances for Property, plant and equipment and Externally funded projects-asset accrual have been restated in order to correctly recognise assets purchased during the years ending 30 June 2012 and 30 June 2013. Assets purchased during 2012 and 2013 were incorrectly recognised during the year ended 30 June 2014. Therefore, an adjustment was required in order to account for the purchase of assets in the correct financial periods. THE EFFECT OF THE ERROR IS AS FOLLOWS: Plant and equipment – cost

Accumulated depreciation

Externally funded projectsasset accrual

Adjustment for acquisition of plant and machinery during year ended 30 June 2012

3 106 674

(3 106 674)

Adjustment for acquisition of plant and machinery during year ended 30 June 2013

274 033

(272 616)

(1 417)

3 380 707

(272 616)

(3 108 091)

24. SUBSEQUENT EVENTS The directors are not aware of any matter or circumstance arising since the end of the financial year. 25. GOING CONCERN The directors have made an assessment of the ability of the company to continue as a going concern and have no reason to believe the business will not be a going concern in the year ahead. 26. CONTINGENT LIABILITIES The Uitenhage Despatch Development Initiative NPC has no contingent liabilities at year end.

UDDI 2013/14 ANNUAL REPORT

DETAILED STATEMENT OF COMPREHENSIVE INCOME Revenue

2014

Nelson Mandela Bay Municipality - grant income

Restated 2013

6 195 930

4 618 800

264 981

34 529

22 857

310 078

304 539

10 029

16 127

Other income Commissions received Entrance fees Finance income Miscellaneous income

186 850

209 062

Rental income

73 692

59 487

Unit venue hire

18 991

60 942

Recoveries of project liabilities

Release of deferred income

Expenses (Refer to page 28) Operating surplus Finance costs Surplus for the year

UDDI 2013/14 ANNUAL REPORT

842 382

272 616

1 476 551

1 210 611

(6 433 578)

(5 579 720)

1 238 903

249 691

(5)

(14 612)

1 238 898

235 079

DETAILED STATEMENT OF COMPREHENSIVE INCOME Operating expenses

2014

2013

Advertising and marketing

(299 538)

(22 402)

Auditors remuneration

(110 000)

(117 700)

(268 676)

Bad debts Bank Charges

(30 446)

(33 463)

Cleaning

(1 901)

(1 343)

Computer expenses

(6 967)

(8 095)

Conference and exhibitions Consulting fees Depreciation on property, plant and equipment Donations Employee costs Entertainment Functions and catering

(13 050)

(41 917)

(142 341)

(66 240)

(1 006 186)

(437 169)

(27 143)

(2 819 135)

(3 579 157)

(9 079)

(19 267)

(82 006)

(9 856)

(18 483)

(31 596)

(33 240)

(349 493)

(346 955)

Motor vehicle expenses

(64 055)

(45 642)

Network expenses

(46 715)

(44 827)

Gifts and donations Insurance Lease rentals on operating lease

Office expenses Payroll processing Postage and courier Printing and stationery Projects of the CEO’s office Refreshments Repairs and maintenance

(7 072)

(10 312)

(12 717)

(16 835)

(4 732)

(2 704)

(30 191)

(29 599)

(105)

(32 144)

(8 382)

(23 175)

(500)

(850)

UDDI 2013/14 ANNUAL REPORT

DETAILED STATEMENT OF COMPREHENSIVE INCOME - CONTINUED Operating expenses

Science Centre expenses Secretarial fees

2014

2013

(981 552)

(1 813)

(2 939)

(570)

(8 668)

(4 453)

Telephone and fax

(40 569)

(50 351)

Training

(53 689)

(22 287)

(70)

(23 472)

(229 409)

(147 716)

(31 745)

(100 594)

(6 433 578)

(5 579 720)

Staff welfare Subscriptions

Transport Travel - local Utilities

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS Despatch Environmental Cluster 2014

2013

1 800 000

Advertising & marketing

(76 275)

(76 274)

Artist fees

(18 750)

(3 393)

Cumulative project advances received DEDEAT Cumulative project disbursements

Compost / fertilisers

(1 300)

Equipment

(287 324)

(239 892)

Fruit trees

(63 570)

Consulting fees

(6 394)

General expenses

(10 342)

(1 589)

Hire of equipment

(18 182)

(7 967)

Labour costs

(10 859)

(8 987)

Loud hailing

(300)

(15 880)

Functions and catering

MEC visit

UDDI 2013/14 ANNUAL REPORT

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS - continued Despatch Environmental Cluster

2014

2013

(3 238)

(30 168)

(30 008)

Project coordination fees

(145 625)

(154 378)

Project management fees

(285 978)

(277 312)

(1 669)

(719)

Payroll fees Plants and seedlings

Protective clothing

(241)

(9 200)

(474)

Stipend

(94 590)

Training and development

(91 732)

Transport

(32 699)

(32 028)

Travel

(18 885)

Trees

(6 723)

Vertical gardens

(6 855)

(1 075)

Video photography

(7 500)

Refreshments Soil Stationary

Wages

(220 620)

(161 149)

Workshop expenses

(6 473)

(402)

World Enviro Day

(4 800)

319 961

464 488

Net project advance

UDDI 2013/14 ANNUAL REPORT

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS Expanded Public Works Programme

2014

2013

2 000 000

Advertising

(200)

Equipment

(138 177)

(109 159)

(8 592)

(7 983)

Cumulative project advances received Nelson Mandela Bay Municipality Cumulative project disbursements

Fuel Functions and catering

(17 534)

(17 768)

Payroll processing

(55 295)

(5 938)

Printing and stationery Project coordinator fees

(252 005)

Project management fees

(105 000)

(42 220)

(200)

(182 948)

(182 505)

Protective clothing Storage Training and development Transport

(15 977)

(15 704)

Travel

(78 698)

Wages

(866 662)

(854 519)

Water

(650)

(200)

229 904

272 606

Net project advance

UDDI 2013/14 ANNUAL REPORT

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS Heritage Sites - Maintenance

2014

2013

1 500 000

(137 612)

Cumulative project advances received Nelson Mandela Bay Municipality Cumulative project disbursements Equipment and materials Induction expenses Payroll fees

(2 750)

(16 546)

(849)

Project coordinators fee

(75 000)

Project management fee

(62 500)

Protective clothing

(22 016)

Stipend

(82 630)

Training

(205 833)

(54 448)

(671 814)

168 002

Printing and stationery

Transport costs Wages Net project advance

UDDI 2013/14 ANNUAL REPORT

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS IDT - Works Opportunity Program

2014

2013

2 859 888

707 616

122 217

14 592

(2 912 692)

(722 393)

69 413

(185)

Cumulative project advances received Independent Development Trust Recoveries Cumulative project disbursements Wages Net project advance

100

UDDI 2013/14 ANNUAL REPORT

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS Recycling

2014

2013

1 217 315

9 937

(70)

Cumulative project advances received Nelson Mandela Bay Municipality Sales Waste Cumulative project disbursements Courier & postage

(157 554)

(41 860)

Fencing

(48 942)

(6 610)

General

(6 014)

(3 443)

Hiring of equipment

(5 925)

Labour

(2 224)

Payroll processing

(3 621)

(1 876)

Petty cash

(9 110)

(10 480)

(9 748)

Equipment Cost

Plants and trees Printing and stationery Project management fee Protective clothing Roadshow expenses Signage Soil Transport Wages Net project advance

(1 322)

(72 653)

(816)

(36 867)

(6 106)

(3 800)

(54 959)

(51 379)

(149 489)

(93 037)

657 300

880 406

UDDI 2013/14 ANNUAL REPORT

101

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS NMB Science and Technology Centre - Completion

2014

2013

2 066 600

Advertising and marketing

(35 175)

Bursary

(92 480)

Cleaning materials

(11 569)

(6 686)

Cumulative project advances received Nelson Mandela Bay Municipality Cumulative project disbursements

Coffee shop expenses

(42 084)

Conference fee

(1 000)

Day allowances

(8 140)

(174 909)

(1 710)

Fire detection system

(185 292)

Furniture and fittings

(331 528)

(35 259)

Computer expenses

Equipment Exhibition set-up

General expenses Hire of equipment Insurance Interest paid - overdue accounts Internet Kiddies parties Launch expenses Maintenance Membership fees Municipal charges Payroll fees Pre Phase 2 - landscaping Printing and stationery Protective clothing

102

UDDI 2013/14 ANNUAL REPORT

(1 149)

(33 832)

(17 648)

(519)

(10 925)

(11 104)

(1 217)

(106 327)

(24 536)

(1 250)

(249 673)

(2 065)

(126 274)

(20 397)

(1 446)

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS - continued NMB Science and Technology Centre - Completion

Refreshments Safety equipment

2014

2013

(3 142)

(694)

(88 376)

(91 841)

(220 757)

Security

(65 779)

(65 509)

Sound system

(40 135)

(5 417)

Transport costs

(10 394)

Travel

(47 793)

Wages

(70 601)

(74 004)

8 070

17 477

Salaries - cleaners Salaries - staff

Telephone

Net project advance

UDDI 2013/14 ANNUAL REPORT

103

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS NMB Science and Technology Centre - Construction

2014

2013

3 000 000

Cumulative project advances received Eastern Cape Development Corporation

24 539 544

Other income

Nelson Mandela Bay Municipality

29 060

Interest received

41 011

Cumulative project disbursements (32 837)

(32 837)

Conference fees

Computer expenses

(5 321)

Consulting fees

(3 291 712)

(1 709)

(23 555)

Courier costs Electrical work Entertainment Equipment cost Feasibility

(7 130) (138 788)

(2 629 123)

Landscaping & building

(329 993)

Legal and statutory costs

(215 119)

Marketing

(214 748)

(972)

Meeting costs Network expenses

(9 511)

Petty cash

(5 000)

Refreshments Renovations Research costs RFP rollout costs Site clearance

104

(7 130) (138 788)

(3 289)

(19 383 297)

(24 487)

(5 529)

(706 589)

Staff costs

(8 765)

Stationary

(22 355)

Telephone

(17 655)

Travel

(90 872)

Net project advance

441 259

UDDI 2013/14 ANNUAL REPORT

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS - continued NMB Science and Technology Centre - Exhibits

2014

2013

140 287

Cumulative project advances received BASF

800 000

4 000 000

27 531

Advertising and marketing

(103 978)

Architectural services

Nelson Mandela Bay Municipality Volkswagen of South Africa Other income Cumulative project disbursements

(119 570)

Conference fees

(1 830)

Consulting fees

(812 800)

(45 696)

(43 398)

(3 159 377)

(3 147 374)

Equipment Exhibits

(13 219)

Internal fittings

(480 448)

Labour

(126 070)

(1 026)

(721)

Insurance

Postage Printing & stationery

(1 300)

Transport

(50 331)

(48 831)

Travel and accommodation

(47 894)

3 558

19 359

Training

Net project advance

UDDI 2013/14 ANNUAL REPORT

105

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS Science Education

2014

2013

931 699

851 699

(2 300)

Equipment and fittings

(631 270)

(554 635)

Motor vehicle and fuel costs

(267 220)

(223)

Cumulative project advances received South African Agency for Science & Technology Advancement (SAASTA) Cumulative project disbursements Day Allowances

Refreshments Science DVDâ&#x20AC;&#x2122;s Sci Fest Africa 2012 Stipends Training fees Travel Net project advance

106

UDDI 2013/14 ANNUAL REPORT

(4 362)

(12 772)

(7 950)

(13 216)

(5 688)

(13 302)

(16 667)

DETAILED STATEMENT OF EXTERNALLY FUNDED PROJECTS - continued NMB Science and Technology Centre - Operations

2014

2013

1 000 000

62 799

Advertising and marketing

(3 676)

Cleaning materials

(6 040)

Computer expenses

(8 346)

Conference fees

(2 600)

Cumulative project advances received Nelson Mandela Bay Municipality Other income

Cumulative project disbursements

(1 342)

(648 567)

Equipment

(36 778)

Exhibitions

(1 915)

Functions and catering

(6 151)

Holiday programmes

(7 526)

646

(12 843)

Courier and postage costs Employee costs

Insurance Internet expenses Maintenance Motor vehicle expenses Municipal charges Printing & stationery Security Subscriptions Telephone Training Travel and accommodation Net project advance

(2 706)

(17 135)

(152 764)

(22 206)

(7 310)

(2 950)

(16 922)

(3 900)

(20 521)

81 247

UDDI 2013/14 ANNUAL REPORT

107

Physical Address: First Floor Central Hub Building, NMB Logistic Park, Uitenhage Industrial, 6230 Postal Address: PO Box 1072, Uitenhage, 6230 Tel: (27) 41 978 8070 | Fax: (27) 41 978 8099 | E-mail: info@uddi.co.za

UDDI 2013/14 ANNUAL REPORT