ANNUAL REPORT 2013/14

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1 ANNUAL REPORT 2013/14 FOR PEOPLE LIVING WITH DISABILITIES

2 CONTENTS Contents...2 Who we are... 3 Vision...3 Values...3 Where we are...3 Message from the Chairman...4 From the CEO s desk Highlights... 6 GJA Organogram...8 Operational Highlights...10 Financial Overview...12 Gallery...16 Our partners...17 Special Thanks to our Partners A word of appreciation and gratitude goes to Partners, Board Members, local Community structures and staff in general for their support during the most difficult times. The achievements shared in this report are a clear indication that, despite a number of challenges GJA can only continue to improve in its quest to provide a better future to Learners and businesses in the incubation programme. 2 GJA ANNUAL REPORT 2013/14

3 WHO WE ARE Our Vision: To become a national and internationally renown centre of excellence in the provision of high quality training in the Jewellery industry as well as the manufacturing of quality Jewellery, exceptional designs and business incubation support provision to graduates and existing businesses in the sector in line with donors and partners expectations. Our Mission: Equip People with Disabilities with Skills to enhance added value on locally mined minerals commodities and to ensure business incubation empowerment to new and existing businesses in the Jewellery sector thus changing the lives of People with Disabilities and youth from disadvantaged backgrounds. Our Values: Upliftment of the living standards of People with Disabilities, restoration and stimulation of self-esteem, dignity and human respect. Endeavor not only to be the best Jewellery academy for People with Disabilities but the best academy for Jewellery design and manufacturing in the region. Pursue the best models in the business incubation support while promoting ethical and transparent business practices and principles. Where We Are: LENASIA 3 GJA ANNUAL REPORT 2013/14

4 Message from the Board Chairman Dear friends, The year 20213/14 has been one of great progress and has consolidated a large number of goals and ambitions. It have been a year of consolidation, in which we have seen the achievement of successfully graduating our Level 2 Students, of stable staffing and in general realising the initial objective of providing highly valued skills to people living with disabilities. Regrettable, our Founder and visionary Mr Siphiwe Zikalala chose to become a farmer this year, and resigned from his position a Center Manager. But we are pleased to advise has retained his position as a Director of the Academy. We owe our very existence to the Dream achieved by Mr Zikalala. He has written history with his pioneering achievement for which we are very grateful. We wish him all the best in his new career. Jennifer Becker As the property owners of the Zakheni Centre, the City of JoBurg are of the mind that the Centre should be opened to everyone and assorted career skills training should be taught. This is a serious challenge to GJA and our specialized students, and in conflict with our high security needs, which by its very nature, Jewellery creation requires. To have assorted and constantly changing persons, being entitle to be on the premises would put our products and equipment at high risk. Cohabitation with unmanaged or aligned industries would not be feasible. Discussions with the City of Joburg on this matter are still ongoing, but we are cognisant of the possible need to find new premises. Global Jewellery Academy s mandate might look simple to execute and deliver however; its reason for existence, makes the task very challenging and at times putting the institution at cross roads with its partners/funders and the local community. Global Jewellery Academy was established for the support to people living with disabilities with an objective to give them accredited skills in the jewellery sector as well as to provide business incubation support to entrepreneurs already running businesses in sector. The City of Joburg partnered with GJA to open a Jewellery Manufacturing Academy at the Zakheni Skills Center, for people living with Disabilities in a MOU signed September We are now meeting with revised opinions, in terms of who should benefit from the Zakheni Centre Centre s activities and what should be delivered by the Centre. 4 GJA ANNUAL REPORT 2013/14

5 From the CEO s Desk Robert Buys Global Jewellery Academy for PLD s (GJA) is the brainchild of Mr Siphiwe Zikalala, whose deaf son had the relevant family back up support in all aspects including an exposure to art of ornate chain-making and the basics of jewellery production techniques from a reputable training institution. It is with this personal experience that GJA founder thought about other children with similar challenges but without appropriate financial background or family support structure. The two combinations of the Global Jewellery Academy: Skills training provision and mass production factory exposure to talented, experienced and aspiring young businessmen and women to succeed in spite of their disabilities. This will give the Academy not only a competitive edge in this sector but an appropriate platform that will culminate in self-confidence particularly to those affected by a disability of one nature or the other. Global Jewellery Academy has two key components: Skills Training provision in the Jewellery sector supported by MQA (Mining Qualification Authority) and Business Incubation Programme supported by Seda (Small Enterprises Development Agency). The City of Johannesburg came and joined hands to support the initiative by providing an infrastructure free of charge with water, electricity and security. Stakeholders such as GEP Gauteng Enterprise Propeller, IDT Independent Development Trust, Eskom, MTN, Johannesburg and Rand Water as well as private individuals made it possible to put GJA where it is now. GJA was formed in 2009 as a Non-Profit Organisation ( NPO), as a Public Benefit Organisation (PBO ) and registered with CIPC Company Registration: 2009/018726/08. Going forward, GJA with the support from its partners and stakeholders plans to strengthen the Business Incubation Programme, refurbish an existing structure in the premises and convert it into a jewellery commercial factory, employ professional staff for mass production, business incubates to make use of the factory environment to enhance their businesses in terms of product development and marketing opportunities. 5 GJA ANNUAL REPORT 2013/14

6 2013 HIGHLIGHTS Operations: Seda - Business Incubation During the period under review, the Centre has performed above expectations having met and exceeded all key targets set by our key funder: Seda (Small Enterprise Development Agency) which were the following: ACTIVITY TARGET ACHIEVED New SMMEs established New Projects initiated 0 11 Clients supported SMMEs supported The above figures are supported by MOVs (Means of Verification) as requested by Seda however, it is important to note that, due to the fact that GJA could not present MOVs in addition to the existing Company Registrations for the incubatees for Q1 and Q2, only Q3 and Q4 were taken into account for auditing purposes. Seda has trained GJA Administrators to ensure that 2014/15 FY operations are captured adequately. Operations: MQA - Skill Development Skills development training provision under MQA: For the period under review, 24 Learners graduated from L2 to L3. 5 could not return to the Centre because they did not make the criteria set by MQA for Level 3. 2 learners left on their own volition. 17 Learners were enrolled with MQA at L3 for 2014/15 FY. Human Resources: Resignations: 2 staff members resigned for greener pastures and 1 for personal reasons. Due to overheads that the Centre had, only 1 staff member has so far been replaced. Staff contracts and remunerations: Until the Centre s financial situation improves; staff will remain on month to month contracts. This is not a perfect scenario but, until additional and stable and longtime funding is secured, the Centre can t commit on long term staff contracts. This situation has made staff to feel insecure and consider new opportunities when they come along. The more recent staff turnover is an indication of two key areas: Low salaries and insecure contracts. Audited financials: The auditors of the Centre s financials are A.Carrim and Associates and I am pleased to inform you that the Auditor s report has no findings. Partnerships: GJA has during the period under review, managed to maintain good relationships with our current partners in particular Seda, MQA and the City of Joburg. Discussions are ongoing to secure additional and continuous partners such as: Eskom Foundation, MTN, Rand Water IDT (Independent Development Trust). INCUBATEE 6 GJA ANNUAL IN THE REPORT WORKSHOP 2013/14 LENASIA, SOUTH AFRICA

7 Marketing, Networks and Exhibitions: At the moment, the Centre Manager and his team are driving the process. In the period under review, a number of Community radio stations and newspapers have been engaged as well as Community Civic Organizations, Local Municipality and Businesses to ensure the promotion of the Centre s activities at all levels. Short term staff contracts: Short term staff contracts is a great concern amongst staff as this creates a highly level of insecurity as indicated above. Key challenges: Safety around the Centre: The Centre s location is a safety concern as it is situated in a very remote area. Staff, Learners and property have been targeted by criminals and some incubatees are reluctant to join us. The community and the police have been informed and their support and commitment has been pledged and their support is showing positive results. Property Lease Renewal: There is a high level of uncertainty around this matter as indicated in previous reports however; the Centre Manager has been in meetings with the City of Joburg Economic and Social Development Units but still no concrete decision in our favor has been taken. BUSINESS EXIBITION LENASIA, SOUTH AFRICA LEARNERS IN CLASSROOM LENASIA, SOUTH AFRICA 7 GJA ANNUAL REPORT 2013/14

8 GJA ORGANOGRAM BOARD SUB-COMMITTEES Ms. Jennifer Becker: Chairman: Finance, Risk and Audit Mr. Malembe Mtsweni: Chairman: HR and Governence Mr. Sipho Khwebulane: Chairman: Marketing and Fundraising Mr. Sipho Sikhosana: Chairman: Operations and Report Board Secretariet: Adv. Giel Martins 8 GJA ANNUAL REPORT 2013/14

9 Learnership Summary Learners Male Female Disabled GJA ANNUAL REPORT 2013/14 GRADUATION LENASIA, SOUTH AFRICA

10 OPERATIONAL HIGHLIGHTS GLOBAL JEWELLERY ACADEMY S BACKGROUND AND ITS SUCCESS Global Jewellery Academy was set up with a specific purpose: Support provision in terms of Skills Development and Training in the Jewellery Sector for Persons Living with Disabilities particularly youth from disadvantaged communities. The institution s founder Mr Siphiwe Zikalala, having a child with a hearing and speech impairment, told himself that, like my child, there are many other children out there with the same disability and facing worse challenges than my child. This thought gave him the Vision that gave birth to Global Jewellery Academy. Global Jewellery Academy was registered in 2009 as a Skills Development Training Centre - Jewellery, and started its operations in The success factor of the institution is as follows: : 8 Learners with a Disability (6 males and 2 females), start training under Mining Qualifications Authority Accreditation Level 2. The training was conducted from the founder s home in Rembrandt Park Johannesburg : Partnerships are formed with MQA and the City of Johannesburg for funding and infrastructure : The City of Jhb provides premises in Lenasia October, Global Jewellery now with 15 Learners (11 males and 4 females) moves to Lenasia Ext January, the Learners number increases to 25 (18 male and 7 females) February, GJA enters into a partnership with Seda (Small Enterprises development Agency) for the Business Incubation Programme with the relevant funding February, 7 Business Incuabtees are registered to participate in the Programme March, 24 Learners in the Mining Qualification Authority Skills Development Programme graduate from Level 2 to Level 3. Currently, the Centre has a total of 54 Leaners: 30 on Level 3 (10 females and 20 males): 15 able bodies and 15 with disabilities. 24 on Level 2 (8 females and 16 males): 3 able bodies and 21 with disabilities. The mix (Able and Disabilities) is to encourage the Learners to mix in preparation to a business life once completed Level 3 and after completing the Business Incubation Programme and into the real world of business. Global Jewellery Academy would have not made it alone and, Sponsors, Partners and Staff are acknowledged as their contributions are making a positive impact in the lives of those the Academy is meant to support: Businesses and Learners. 10 GJA ANNUAL REPORT 2013/14 GRADUATION DAY LENASIA, SOUTH AFRICA

11 Centre s key roles: Skills Development Training provision in the Jewellery sector to People with Disabilities. Out of 24 for the period under review: 70% male 30% female 80% PWDs (hearing and speech impaired = 50%, slow learners = 20% and wheelchair users = 10%) 20% able Business incubation support in the Jewellery sector. 5 fully flagged businesses. 7 pre-incubation. The Centre s target is 15 fully flagged businesses in the Incubation programme by 2015 being supported in all key aspects of production and business management which includes: Product development, accounting, marketing, sales, networking and export orientation. PRODUCTS MADE BY OUR LEARNERS & INCUBATEES LEARNER IN A WORKSHOP LENASIA, SOUTH AFRICA 11 GJA ANNUAL REPORT 2013/14

12 FINANCIAL OVERVIEW Independent Auditor s Report To the member of Global Jewellery Academy We have audited the financial statements of Global Jewellery Academy, which comprise the statement of financial position as at 28 February 2014, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes, and the directors report, as set out on pages 5 to 13. 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 South African Statements of Generally Accepted Accounting Practice, and in the manner required by the Companies Act of South Africa. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. 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 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 auditors 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. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Global Jewellery Academy as at 28 February 2014, and its financial performance and its cash flows for the year then ended in accordance with South African Statements of Generally Accepted Accounting Practice, and in the manner required by the Companies Act of South Africa. A. Carrim & Associates Chartered Accountants (S.A.) Registered Auditors 12 GJA ANNUAL REPORT 2013/14

13 Statement of Financial position As at 28 February 2014 Figures in Rand Note(s) 2014 R 2013 R Assets Non-Current Assets Property, plant and equipment Current Assets Cash and cash equivalents Total Assets Equity and Liabilities Equity Surplus Liabilities Current Liabilities Trade and other payables Total Equity and Liabilities GJA ANNUAL REPORT 2013/14

14 Statement of comprehensive income Figures in Rand Note(s) 2014 R 2013 R Funding Workshop material 6 ( ) (16 992) Gross profit Operating expenses ( ) ( ) Operating Surplus Investment revenue 7 Surplus of the year Other comprehensive income Total comprehensive income GJA ANNUAL REPORT 2013/14

15 Statement OF CASH FLOWS Figures in Rand Note(s) 2014 R 2013 R Cash flows from operating activities Cash generated from operations Interest income Net cash from operating activities Cash flows from investing activies Purchase of property, plant and equipment Sale of property, plant and equipment 2 2 (28 812) ( ) - Net cash from investing activities (24 190) ( ) Total cash movement for the year Cash at the beginning of the year Total cash at the end of the year GJA ANNUAL REPORT 2013/14

16 GALLERY GJA STAFF LENASIA, SOUTH AFRICA AN EXHIBITION LENASIA, SOUTH AFRICA IN A WORKSHOP LENASIA, SA 16 GJA ANNUAL REPORT 2013/14 GRADUATION DAY LENASIA, SOUTH AFRICA

17 OUR PARTNERS 17 GJA ANNUAL REPORT 2013/14

18 NOTES 18 GJA ANNUAL REPORT 2013/14

19 NOTES 19 GJA ANNUAL REPORT 2013/14

20 FOR PEOPLE LIVING WITH DISABILITIES For further information please contact: Global Jewellery Academy Tel: / Website: Physical Address: 159 Volta Street Lenasia Ext 9 Johannesburg 1827 Republic of South Africa Postal address: P.O Box Linden Johannesburg 2104 Republic South Africa

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