• Focus: prepare for repositioning

• Shareholder direction

• Highly dynamic market environment

• Review strategic thrust

• New mandate

• Redefined: target market, study programme,

student source, build capacity

Overview

Overview (cont.)

• Concentration, bring NEMISA to a state of

readiness for 2007 academic year

• New content hub

• New study programme launched February

2007

• Fulltime student body 153

• 11 fulltime and 8 part-time trainers

The Main Challenge

To prepare for and establish a new NEMISA that

would offer a fully integrated study programme

and content generating facility that addresses

the needs of the fast developing and ever

changing ICT sector

Meeting the Challenge

Develop the new study programme to include:

• A 12 – month National Certificate in Radio

Production

• An 18 month National Certificate in TV

Production

• A 3 – year Diploma in Animation

• A 12 – month Foundation Course in Graphic

Design for Multimedia

• A 12 – month Learnership in Broadcast

Engineering

• A 12 – month Pilot Academy in

Telecommunications

Meeting the Challenge (cont.)

Accordingly:

• Do course development – new curricula;

teaching and learning materials

• Re-develop resource centre

• Appoint new fulltime trainers and find part-

time supporting team

• Upgrade the technology

• Establish accreditation

• Develop quality management system

• Plan human resources and effective

organisational structure

Performance Against Predetermined Objectives: Achievements

Governance:

• Re-launch of NEMISA – July 2006

• EXCO

Performance Against Predetermined Objectives: Achievements

Management: Training & Development

Course Development –

• Development of new study programmes for

2007 (incl. curriculum; teaching & learning

materials)

• Acquired 3 year animation curriculum from

Algonquin College of Applied Arts and

Technology (Canada)

• Established Industry and Curriculum

Advisory

Bodies

Performance Against Predetermined Objectives: Achievements

Management: Training and Development:

Course Development -

•Training programmes for people with

disabilities

•10 week animation Master Class with

Algonquin

•Training animation producers with APTI &

produced short films

•Final run of the Creative Multimedia

programme with MMU

•Training SABC staff on the fundamentals

of

High Definition Television

Performance Against Predetermined Objectives: Achievements

Accreditation:

• Compilation of documents for 2007

academic year submission in support of

registration with the Department of

Education; accreditation with the Council

on Higher Education; recognition by

MAPPP and ISETT SETAs

Performance Against Predetermined Objectives: Achievements

Quality Assurance:

• Review & development of processes and

systems

•Development of the Quality Management

System (QMS)

Performance Against Predetermined Objectives: Achievements

Capacity Building: Human & Physical

•Appointment of Senior Management Team

•Learning Support Technologies

Performance Against Predetermined Objectives: Achievements

Student Affairs

•Development of programmes and services

that support training excellence

Performance Against Predetermined Objectives: Achievements

Content Development

•Digital content development strategy

•Solicit commissioning on content

development

Abridged Auditors Report

Opinion of the Auditor General:

• In my opinion, the financial statements present fairly, in all material

respects. The financial position of NEMISA as at 31 March 2007 and

its financial performance and cash flows for the year then ended, in

accordance with the basis of accounting determined by the National

Treasury of South Africa, as set out in note 1.1 to the financial

statements, and in the manner required by the PFMA.

Other Matters :

• Impairment exercise was not carried out.

• Intangible Assets: Classified under computer equipment instead of

the above.

Statement of Financial Position for the Annual Financial Year End ended

March 2007Note March 2007 March 2006

R R

Assets

Non Current Assets

Property, Plant, Equipment 2 7 748 901 6 323 514

Intangible Assets 3 175 150 473 832

Current Assets

Trade and Other Receivables 4 2 927 081 14 992 616

Staff Loans 5 000 2 000

Cash and Cash Equivalents 4 14 763 855 19 280 309

Total Assets ___________ ____________

25 619 986 41 072 271

___________ ___________

Net Assets and Liabilities

Accumulated Surplus 5 5 665 611 6 885 983

Long Term Liabilities 6 1 307 142 3 311 492

Current Liabilites

Unspent conditional project funds 7 12 611 075 27 061 300

Trade and other Payables 8 5 658 570 3 611 981

Provisions 9 ___387 588 201 515

Total Net Assets and Liabilities 25 619 986 41 072 271

___________ _________

Statement of Financial Performance for the Annual Financial Year March

2007NOTE March 2007 March 2006

R R

Income

Government Grants 19 199 000 18 163 000

Other Income 10 2 013 957 6 426 992

Interest Received 11 672 040 319 064

Total Income 21 884 997 24 909 056

Expenditure 12/15 (23 115 369) (23 140 221)

Current Year

Correction of Fundamental Error

(Deficit) Surplus for the year

______________________

( 1 230 372) 1 768 835

______________________

(23 115 369) (215 39359)( 1 600 862)

Statement of Changes in Net Assets for the Annual Financial Year End

ended March 2007Note Accumalated Total

Income(deficit)

R R

Balance as at 31 March 2005 8 658 031 8 658 031

Correction of fundamental Error 15 (4 332 813) (4 332 813)

__________ ____________

Reinstated as at 1 April 2005 4 325 218 4 325 218

Net Surplus for year as previously Stated 959 903 959 903

Correction of fundamental Error 15 1 600 862 1 600 862

___________ ___________

Restated Balance as at March 2006 6 885 983 6 885 983

Net (Deficit) for the year (1 230 372) (1 230 372)

___________ __________

Balance as at 31 March 2007 5 655 610 5 655 610

___________ _________

Notes to the Annual Financial Statements

CORRECTION OF FUNDAMENTAL ERRORS – PRIOR YEARS

March 2006 Pre-March 2006 Total R R R

Equipment Hire

( 296 397) 126 462 ( 169 935)

Depreciation ( 233 521) 318 669 ( 551 919)

Operating lease property rent (1 161 828) 4 473 785 3 311 957

Finance costs 90 614 51 235 141 849

1 600 862 4 332 813 2 731 951

• Correction of fundamental error relating to lease agreements not disclosed

as finance leases.• Operating lease expenses were not correctly straight-lined in terms of

IAS17/AC105. Prior year depreciation was incorrectly calculated, and adjusted in line with a change in accounting estimate.

Staff Establishment

:

  Specialised Skills

 Executive Management

  Basic Skills

  Management

  Senior Management

  Support

  Operational