Umsobomvu Youth Fund Annual Report 2006 - Nyda

statementof corporategovernanceYouth Advisory CentreRegulatory Environmentand Statutory ComplianceUmsobomvu Youth Fund, being a publicentity, is subject to the applicableprovisions of the Public Finance ManagementAct of 1999 (PFMA), amongstothers, and is also obliged to adopt theprinciples of the King Code of CorporatePractice and the Protocol on CorporateGovernance for the Public Sector, much ofwhich underpins the fundamentals of theKing II Report.The Fund is an Association (not for gain)incorporated under Section 21 of theCompanies Act. It is also classified asa National Public Entity under Part B ofSchedule 3 of the PFMA.The Board of Directors is proud toreport that in June 2005 it approvedand implemented the Umsobomvu YouthFund’s Corporate Governance Manual,supporting Board Charter and BoardCommittee Charters, which aims to providea comprehensive set of governance, policydirectives and guidelines to promotethe highest standards of corporategovernance.The UYF Corporate Governance Manualhas been developed on the principlesand guidelines of the Code of Corporate Practice and Conduct as set out in the KingII Report on Corporate Governance and supplemented by the Protocol on Governancein the Public Sector. The Fund has complied with the provisions of the CorporateGovernance Manual during the year under review.Corporate governance is an important element of the management and operations ofthe Fund, and is supported by the Board and Management of Umsobomvu Youth Fundto meet the need for accountability, integrity and transparency. In this regard, the Boardwill continue to develop and improve its corporate governance practices to ensure thatit meets with best practices.Governance principlesCode of Conduct and Corporate Values StatementDuring the year under review, the Fund reviewed its Code of Conduct and CorporateValues Statement to bring the Fund’s growing business landscape and human resourcebase in line with corporate best practices and regulatory developments.The Code of Conduct and Corporate Values Statement commits the Fund’s Managementand staff to the highest standard of ethical and professional behaviour, including afundamental respect for the law, and requires all employees to act in utmost good faithand integrity in all transactions and with all stakeholders with whom they interact.Systems and procedures have been implemented to ensure that the Code of Conductand Corporate Values Statement is communicated and adhered to by all employees.Code of Conduct, together with the Human Resource Policy, clearly articulates howthe provisions contained therein should be adhered to and dealt with in instances ofnon-compliance.Good Corporate CitizenshipThe Fund adopts a set of characteristics of Good Corporate Citizenship, as describedin its Corporate Governance Manual, which have been based from internationalbest practices.Umsobomvu Youth Fund 2006 Annual Report29