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ADMINISTRATIVE REPORT October 2014-September 2015 Administrative Report October 2014 – September 2015 Page | 2 FOREWORD Administrative Report October 2014 – September 2015 Page | i NEDCO CORPORATE INFORMATION OFFICE LOCATIONS NEDCO Head Office 38 New Street, Port of Spain Tel: 821-5800 Fax: 623-1606 Email: contactus@nedco.gov.tt NEDCO Regional Entrepreneurship Development Centres: EAST / TOBAGO CLUSTER Arima 27 Broadway, Arima Tel: 821-5810 Fax: 667-5395 Tunapuna 135 Eastern Main Road, Tunapuna Tel: 821-5808 Tel: 662-1650 Sangre Grande LP 66, Eastern Main Road, Sangre Grande Milford Road, Lower Scarborough Tel: 821-5806 Fax: 691-0707 Tel: 639-1270 Fax: 635-0769 Tobago UWI Sub Office Student Activity Centre UWI Campus, St. Augustine Tel: 662-3842 NORTH / CENTRAL CLUSTER Chaguanas 93 Ramsaran Street, Chaguanas Tel: 821-5805 Fax: 672-6819 SOUTH CLUSTER Princes Town 3 Manahambre Road, Princes Town Tel: 821-5809 Fax: 655-5277 Port of Spain 88 Queen Street, Port of Spain Tel: 821-5802 Fax: 625-7144 San Fernando 13 Naparima Mayaro Road, San F’do Tel: 821-5807 Fax: 653-7184 Administrative Report October 2014 – September 2015 Page | ii Point Fortin Guapo Road, Cap de Ville Tel: 821-5803 Fax: 648-3450 Entrepreneurial Training Institute and Incubation Centre (ETIIC) Head Office 149 Eastern Main Road, Barataria Tel: 821-5817 Fax: 675-4613 Chaguanas 93 Ramsaran Street, Chaguanas Tel: 821-5805 Fax: 672-6819 San Fernando 13 Naparima Mayaro Road, San F’do Tel: 821-5822 Fax: 653-5913 National Integrated Business Incubation
 System (IBIS) Administrative Hub 1st Floor, The Atrium, Don Miguel Road Extension, El Socorro Tel: 821-5800 ext.
2095/2108 INCUBATORS: Diego Martin 21-22 New Yalta Road, Diego Martin Tel: 633-0183 Sangre Grande LP 917 Manzanilla Road, Sangre Grande Tel: 691-3729 Point Fortin Lot#14 Guava Road, Point Fortin Tel: 821-5803 AUDITORS PKF 90 Edward Street Port of Spain Tel: 624-4388 Administrative Report October 2014 – September 2015 Page | iii GLOSSARY ALJGSB BIP BON BRO CARIRI CED CCLCS CEO CGCL CMFA COO COSTAATT CSTIC ECA ECB EDD EMP EPIC ETIIC GEM GEW IBIS ICT i2i LMS MFI MOLSMED MSE NBIA NEDCO NGO NIHERST NRWPTT NTA PIDA RDM SME TTCIC UNDP UTT UWI YBTT YTEPP Arthur Lok Jack Graduate School of Business Business Investment Proposal Branch Operations Network Business Relationship Officer Caribbean Industrial Research Institute Centre for Enterprise Development Cipriani College of Labour and Co-operative Studies Chief Executive Officer Caribbean Gas Chemicals Limited Caribbean Microfinance Alliance Chief Operating Officer College of Science Technology and Applied Arts of Trinidad and Tobago CARICOM Science, Technology and Innovation Committee Employers’ Consultative Association Enabling Competitive Business (Strategy) Enterprise Development Division Entrepreneurial Management Platform Entrepreneurship Programme for Innovation in the Caribbean Entrepreneurial Training Institute and Incubation Centre Global Entrepreneurship Monitor Global Entrepreneurship Week Integrated Business Incubation System Information Communication Technology Idea to Innovation Loans Management Software Micro Finance Institution Ministry of Labour and
 Small & Micro Enterprise Development Micro / Small Enterprise National Business Incubation Association National Entrepreneurship Development Company Limited Non-Government Organisation National Institute of Higher Education, Research, Science and Technology National Rural Women Producers of Trinidad and Tobago National Training Agency Pre-Incubator Diagnostic Assessment Regional Development Manager Small / Micro Enterprise Trinidad and Tobago Chamber of Industry and Commerce United Nations Development Programme University of Trinidad & Tobago University of the West Indies Youth Business Trinidad & Tobago Youth Training & Employment Partnership Programme Administrative Report October 2014 – September 2015 Page | iv Table of Contents FOREWORD .............................................................................................................................................. i NEDCO CORPORATE INFORMATION ...................................................................................................... ii GLOSSARY .............................................................................................................................................. iv EXECUTIVE SUMMARY ........................................................................................................................... 1 1.0 BACKGROUND ............................................................................................................................ 3 2.0 MISSION
3 2.0 MISSION ...................................................................................................................................... 4 3.0 VISION ......................................................................................................................................... 4 4.0 MANDATE ................................................................................................................................... 4 5.0 CORE VALUES .............................................................................................................................. 5 6.0 ORGANISATIONAL STRUCTURE .................................................................................................. 5 7.0 STRATEGIC PLAN ......................................................................................................................... 7 8.0 FINANCIAL OPERATIONS .......................................................................................................... 16 9.0 LOAN PORTFOLIO ..................................................................................................................... 16 10.0 HUMAN RESOURCE AND ADMINISTRATION ........................................................................... 19 11.0 INDUSTRIAL RELATIONS ........................................................................................................... 21 12.0 INTERNAL AUDIT ......................................................................................................................
22 13.0 PROCUREMENT ........................................................................................................................ 22 14.0 ENTREPRENEURIAL TRAINING INSTITUTE AND INCUBATION CENTRE (ETIIC) ....................... 23 15.0 NATIONAL INTEGRATED BUSINESS INCUBATOR SYSTEM (IBIS) ............................................. 28 16.0 CHALLENGES AND ACTIONS ..................................................................................................... 34 Appendix I - Statement of Financial Position ........................................................................
I Appendix II - Statement of Comprehensive Income ........................................................... II Appendix III - IBIS Financials Year to Date 2015 ............................................................... III Appendix IV - IBIS Active Businesses Generating Sales ...................................................... IV Appendix V - Corporate Photos .............................................................................................. III Administrative Report October 2014 – September 2015 Page | v EXECUTIVE SUMMARY For the fiscal year ended September 30, 2015, NEDCO focused on improving operational effectiveness, process improvement, and implementing new methodologies.
The Company also exploited opportunities for better synergies with key stakeholders and created further alliances with key players in the micro and small enterprise (MSE) development arena.
The main overarching strategies for improving the operational effectiveness as outlined in the 2012 - 2015 Strategic Plan incorporate: (i) Staff Development, (ii) Implementation of the New Business Model, (iii) Partnerships, (iv) More in-depth Reporting, (v) Image, (vi) Culture, and (vii) greater focus on Enterprise Risk Management.

Management of the Company’s human resources for the period under review focused heavily on the activities of recruitment and staff development.
The few vacant positions were filled with the assistance of “Recruitment Experts” to attract the highest quality of candidates for the senior positions.

This included Chief Operations Officer, Executive Manager Finance & Risk, Internal Audit Manager, and IBIS Programme Manager.

Staff members benefited from attendance at training programmes, workshops conferences and seminars.

Revised remuneration for staff was implemented effective January 2015.
Payment of salary arrears for the period September 2008 to December 2013 was partially settled with currently employed staff.

During this twelve month period ended September 2015, NEDCO produced 379 loans at a value of $15,997,247.70.

The Company however receives a number of credible loan applicants and enquiries which it is unable to accommodate due to cash constraints.

This amount is estimated to be over $10M annually.


The loan trial balance recorded 5,453 loans at a value of $111.8M as at September 30, 2015 with the three (3) main activities being Retail Trade, Services and Building Contracting.

In terms of training support, a total of 2,770 individuals benefited from NEDCO’s training initiatives during fiscal 2015.

Programmes included Steps to Starting Your Business, Record Keeping & Cash Management, Costing & Pricing, and Tendering for Contracts.
This figure represented a 290% increase from the previous fiscal year when 952 individuals were trained.

NEDCO also partnered with the University of the West Indies to once again deliver a successful edition of the annual Entrepreneurship Boot Camp.

This programme has been instrumental in conducting intense, Boot-Camp Administrative Report October 2014 – September 2015 Page | 1 style training and support, including financial support, to innovative entrepreneurs attached to UWI.
NEDCO also continued to operate the National Integrated Business Incubation System as the implementing agency for MOLSMED.

There are sixty three (63) active businesses within the programme currently generating revenue through the provision of various goods and services.
For the period under review, there were thirty two (32) Pre-Incubation clients and one hundred and four (104) Incubation clients operating across all the targeted communities, both on site and off site, inclusive of seventeen (17) Fast-Tracked clients.

Strategic stakeholder relationships were maintained with a number of agencies, internationally, regionally and locally, to ensure IBIS clients are provided with access to the best networks to contribute to their success.
Administrative Report October 2014 – September 2015 Page | 2 1.0 BACKGROUND The National Entrepreneurship Development Company Limited (NEDCO) is a State owned limited liability company established by the Government of Trinidad and Tobago in August 2002 as a micro finance institution (MFI) with a mandate to assist in the development of a sustainable small and micro enterprise sector.
The stakeholders are the Government of Trinidad and Tobago (through the line Ministry), Board of Directors, Clients, Management and Staff.

Cabinet Minute No.

776 of April 25, 2002 agreed to the establishment of NEDCO to be the implementing agency for Government’s policy on small and micro enterprise development.

The MSE Development Policy (2014) envisions micro and small businesses as key to both economic diversification and social transformation.
The policy seeks to strengthen the MSE support network to improve the quality of management and capacity for MSEs, better access to market opportunities and provision of adequate financing to support growth.
As part of a holistic approach to entrepreneurship support, NEDCO established the Entrepreneurial Training Institute and Incubation Centre (ETIIC) as a strategic business unit in 2005, and also manages the National Integrated Business Incubation System (IBIS) a programme initiated by the MOLSMED in 2012 specifically for intense mentoring of entrepreneurs and monitoring early stage businesses and business start- ups.
With the implementation of the IBIS programme, ETIIC has evolved its original role to focus more heavily on fundamental business training services for entrepreneurs using expert training facilitators.

Conversely, IBIS focuses heavily on mentorship to entrepreneurs at on-site facilities using experienced and established business persons and professionals.
Both programmes are now critical and major components of the entire range of services offered by NEDCO, which on a holistic basis provides diagnostic assessment of the entrepreneur which is followed up by customised training, mentorship and business financing.

NEDCO’s business model of an integrated full service system for entrepreneurship development and business support is depicted in the diagram below.
Administrative Report October 2014 – September 2015 Page | 3 2.0 MISSION To promote and support the development of new and existing MSEs to achieve financial independence, sustainability and competitiveness through the provision of evolving, cutting edge financial products and development support services in a customer focused environment.

3.0 VISION To be the leader of the SME sector, fostering an entrepreneurial culture, thereby contributing to wealth creation and national development.
4.0 MANDATE To empower individuals with the ability to achieve financial independence through employment, as well as to provide credit to the small and micro business sector, including start-up capital at a preferred rate of interest on a sound and collectible basis.
Administrative Report October 2014 – September 2015 Page | 4 NEDCO Business ModelNEDCO Full Entrepreneurship Support ServicesEntrepreneurial Diagnostic Assessment ETIIC Business TrainingBusiness Start-up and Expansion Financing IBIS Incubation & Mentorship 5.0 CORE VALUES  Ethical behaviour  Integrity  Accountability & Transparency  Quality Service & Efficiency  Excellence & High Standards  Health, Safety & Well-Being of Staff  Innovation  Teamwork 6.0 ORGANISATIONAL STRUCTURE The Company is administered through its Head Office in Port of Spain with a Branch Operations Network (BON) comprising ten (10) branches strategically located throughout Trinidad and Tobago.
A sub office was also established at the University of the West Indies, St Augustine in 2013 to facilitate collaboration between NEDCO and the UWI.

ETIIC’s offices are strategically located at Barataria, Chaguanas and San Fernando.

In terms of IBIS, 5 Incubation / Mentorship centres were located in: Point Fortin, Penal, El Socorro, Sangre Grande and Diego Martin.

The Board of Directors comprised twelve (12) members and was re-appointed in June 2013 with Dr Natasha Ramkissoon as the Chairman.
The Board’s responsibilities comprise four specific roles: i. ii.

iii.

Fiduciary, with responsibility for safeguarding the interests of all stakeholders; Strategic, i.e.

reviews management’s business plans in the context of the company’s mission and approves accordingly; Supervisory, i.e.

delegates authority for operations to management through the Chief Executive Officer; iv.

Management Development, i.e.


supervises the selection, evaluation and compensation of the senior management team, management and staff – responsible for operations, products and services.

Administrative Report October 2014 – September 2015 Page | 5 These areas are administered through a corporate functional structure comprising two main divisions – Business Services & Finance and Administration.
These divisions are further subdivided into departmental silos, namely Human Resource and Administration; Lending and Business Support; Recoveries; Development Support Services; Marketing and Corporate Communications; Finance and Risk Management; Information Technology; Properties; Procurement; and Audit.
The Executive Management team comprises:  The Chief Executive Officer  The Chief Operations Officer  The Executive Manager – Legal and Corporate Services  The Executive Manager – Finance and Risk The basic structure is illustrated by the following diagram: Chief Executive Officer - Accounting Officer, oversight for key programmes (eg IBIS) and stakeholder relationships Executive Manager Finance and Risk - Financial Management, IT, Procurement Chief Operations Officer - All Loan Operations, ETIIC Training Executive Manager - Legal & Corporate Services - Corporate Compliance, HR Management The Chief Operations Officer (COO) is responsible for all lending and business support operations encompassing the BON, in addition to the operations of ETIIC.
Under the supervision of the COO are three (3) Regional Development Managers (RDMs) responsible for a cluster of branches, namely:  East & Tobago: Tunapuna, Arima, Sangre Grande and Tobago  North & Central: Chaguanas and Queen Street  South: San Fernando, Princes Town, Penal and Point Fortin Administrative Report October 2014 – September 2015 Page | 6 The Regional Development Committee oversees the development of lending and business support activities, and comprises:  Chief Operations Officer  Three Regional Development Managers  Head of Business and Credit Strategy  Head of ETIIC Branch offices are typically staffed by a Centre Coordinator, Business Relationship Officer(s), Loan Administration/Compliance Officer, and Administrative Assistant.
The following table illustrates NEDCO’s Staff Resources in terms of Organisational Position and Core Function.
NEDCO’s Staff Resources: Organisational Position # Core Function Production Supervision Strategic Administration 3 Executive 1 Audit Manager Department Management 8 Professional (MSE Support) 33 28 Professional (Department) 10 Department Assistants 27 Other Admin Assistants 110 Total Staff & Average Time STRATEGIC PLAN The 2012 - 2015 Strategic Plan provides a road map guiding future efforts to further strengthen the Company’s institutional capacity and to enable it to function as a more effective provider of support to the Micro and Small Enterprise (MSE) sector in Trinidad and Tobago.
It focuses on further transforming NEDCO into a more vibrant organization which will contribute to the strengthening of the national economy.

7.1 Overarching Strategies The main overarching strategies for improving the operational effectiveness as outlined in the 2012 - 2015 Strategic Plan incorporate the following: Administrative Report October 2014 – September 2015 Page | 7 7.1.1 Staff Development - The Strategic Plan outlined a need for strengthening at the Executive as well as Branch Management level.
A new organizational structure was therefore developed and approved for implementation by the Board of Directors during the first quarter of the 2013/2014 fiscal year.

Further to the organisational changes, greater emphasis was placed on staff training and performance monitoring.

7.1.2 New Business Model - NEDCO had developed a new business model which incorporates sound lending and credit risk management practice for the industry.
The system emphasises a diagnostic assessment of entrepreneurial ability, cash flow based analysis and an integrated business training system.

7.1.3 Partnerships - In recognition of the need to access a wider range of services for NEDCO clients, greater collaboration and partnerships with key organisations and stakeholders were emphasised.
7.1.4 Reporting - Enhanced reporting capability inclusive of retraining and use of best practice reporting standards, focus on benchmarks for performance results and, most critically, the deployment of a new Loans Management Software (LMS).

Once deployed, NEDCO’s new LMS will improve reporting efficiency, portfolio performance and demographics, analysis and client relationship management.

7.1.5 Image - Improved corporate image and public perception.
7.1.6 Culture - Change of organisational culture towards greater emphasis on performance and results.

7.1.7 Risk Management - Greater focus on Enterprise Risk Management.
7.2 Achievements In keeping with the main objectives as prescribed by the Strategic Plan, NEDCO has achieved the following: 7.2.1 Staff Development Training – During the period under review NEDCO conducted intense internal training in “Loan Operations”, “Introduction to Cost Ledger Account Referencing” and “Role and Function of Loan Administration/ Compliance Officer”.

Forty nine (49) staff members were exposed to these modules.
Administrative Report October 2014 – September 2015 Page | 8 NEDCO team members also attended workshops and conferences, including the VIII Americas Competitiveness Forum; 4th Caribbean Procurement Conference; Latin Finance Investment Forum; UWI Biannual Banking, Business and Finance Forum; and Caribbean Microfinance Forum VI.

Management at the executive and branch / department level identify training needs for NEDCO staff on an ongoing basis.
Such training may be conducted through external programmes, ETIIC modules and other internal facilitation.

Performance Management - Review and upgrade of Performance Based Management System i.

Key Performance Indicators for all staff positions have been developed for incorporation into a new performance assessment process.

The assessment form for the branch operations has been completed and currently being test piloted.

ii.
ii.

Performance indicators for Head Office staff and those positions that are less target-oriented have also been developed and will be test piloted in fiscal 2016.

7.2.2 New Business Model The model incorporates a revised system of entrepreneurship diagnostic known as “The 360 Degree assessment” which allows for client grading and reporting by giving equal emphasis on: 1) entrepreneurial potential / capability, and 2) actual business viability as opposed to business viability only.
This comprehensive assessment is then used to customize the applicant’s finance and/or entrepreneurial training package.

A new delinquency policy was also developed and implemented.

All staff, including officers involved in the recovery process, were extensively re-trained in the new system which encompassed new reporting and quality control systems.
7.2.3 Partnerships NEDCO has developed collaborative relationships with key organisations and other stakeholders to expand the scope and range of entrepreneurial development services.

These include: Administrative Report October 2014 – September 2015 Page | 9  University of the West Indies – NEDCO office established at the Student Activity Centre at the St Augustine Campus.

The unit interfaces with faculty, staff, students and recent graduates.
The unit has positioned itself as a mentor, facilitator and a conduit for financing innovative campus MSEs via the branch network.

NEDCO benefits from a pool of potential clients while also contributing to the development of an entrepreneurial mind-set that will ultimately redound to the benefit of the wider community.

 University of Trinidad and Tobago – NEDCO’s Corporate Business Analyst serves on the ICT Advisory Council.
In this position he assists with development and review of curriculum content to ensure attainment of an entrepreneurial mind-set and or relevant skills to enhance employment opportunities.

During the period under review this officer served on the Validation Panel for the Academic Programme for Engineering and ICT.

NEDCO also regularly assists with guest lectures and evaluation of students’ Business Plans.
 Youth Training & Employment Partnership Programme – Strategic working relationship established since 2005.

In addition to NEDCO’s Loan Programme, the agreement provides for collaboration between the parties for development of case studies; sharing of training facilities and co-hosting of defined marketing and distribution events.

 Trinbago Unified Calypsonians’ Organisation – NEDCO signed a Memorandum of Understanding with the Trinbago Unified Calypsonians’ Organisation in July 2013.
The parties have agreed on a collaborative arrangement for NEDCO to provide loan funding and other business support to TUCO’s members.

 Caribbean Local Economic Development Program – NEDCO’s Corporate Business Analyst serves on the Trinidad and Tobago National Advisory Committee on Local Economic Development.
The members of the Advisory Committee have assisted the organisation to (i) increase its ability to conduct economic analysis and integrate business and investment needs into local authority needs (ii) integrate gender equality and environmental considerations for sustainable and gender equitable local area development.

 Caribbean Microfinance Alliance – NEDCO’s Corporate Business Analyst serves on the Board of Directors of this regional network of 20 Caribbean microfinance practitioners.
CMFA provides a platform Administrative Report October 2014 – September 2015 Page | 10 for the region’s industry players to engage with global stakeholders to ascertain best practices and trends applicable to the region.
 Arthur Lok Jack GSB / Central Bank of Trinidad and Tobago Business Confidence Survey – completion of quarterly surveys on the local and global economy’s financial performance, financial outlook, investment outlook, employment outlook, production outlook, local economic outlook and global economic outlook.

 Global Entrepreneurship Monitor (GEM) – NEDCO’s Corporate Business Analyst serves on the panel for the National Expert Survey and also assists with research for the project.
NEDCO has collaborated with GEM as an enabler of entrepreneurship.

 Ecomicro Program of the Multilateral Investment Fund via the Inter- American Development Bank, Washington D.C. – NEDCO has established a collaborative relationship with the organisation.

The programme provides technical training in the development of green financial products by Micro Finance Institutions (MFIs).
Participating organizations in the Latin America / Caribbean region will be selected through a competitive process based on performance parameters and their capability to develop green financial products that can facilitate their clients’ access to clean and efficient energy, and improve their ability to adapt to climate change.
The programme will also assist MFIs to analyze their loan portfolios’ vulnerability to climate change and support them in lowering operational energy costs and greenhouse gas emissions.

 MIX Market, Washington DC – NEDCO has established a collaborative relationship with this global organisation and maintains its international profile on the MIX website.

NEDCO submits financial reports, statistical data and other performance reports annually.
This provides the company with international exposure in addition to a platform to interface with similar organisations.

 CARIRI i2i Programme – NEDCO administers the fund, including disbursements to programme recipients, through a Memorandum of Understanding with the Ministry of Planning and Sustainable Development.
 Network of Rural Women Producers of Trinidad and Tobago (NRWPTT) – NEDCO’s Corporate Business Analyst serves as a member of the project team comprising officers of Ministry of Administrative Report October 2014 – September 2015 Page | 11 Finance, Ministry of Food Production and other stakeholders to assist the organisation in the areas of capacity building, financial management and governance.
 CARICOM Science, Technology and Innovation Committee (CSTIC) – NEDCO’s Corporate Business Analyst was involved with the facilitation of the regional conference entitled “Strengthening and Utilizing S&T in the Caribbean” at Grand Anse, Grenada, March 26 to 28, 2015 under the auspices of the Right Honourable Dr. Keith Mitchell, Prime Minister of Grenada - the Prime Minister in charge of Science and Technology for the Caribbean Community.
 Global Entrepreneurship Week – NEDCO participates in the various activities.

These events attracted a wide cross section of the business community and afforded an opportunity for networking and strengthening the relationship with other stakeholders in the entrepreneurship eco system.

7.2.4 Reporting Financial Reports - NEDCO’s financial statements are prepared in accordance with International Financial Reporting Standards (IFRS).
These statements are examined by the Internal Audit Department and the year-end Financial Statements are audited by external auditors.

In addition to the formal reporting structure to the line Ministry as outlined in the table below, NEDCO has further developed internal reporting relationships at various levels that ultimately allow information to flow efficiently from the operational level to the executive level and onward to the Board of Directors as required.
Portfolio Performance Reports - The internal loans management system ensures accountability over NEDCO’s loan portfolio.

Reports are generated independently from the Finance Department (through the IT Manager) which are received by the Branch Operations staff for their ongoing monitoring and reporting on loan portfolio performance.
The critical reports are:  Productivity - Loan Disbursements  Collections Efficiency – Collections Report  Loan Portfolio Quality - Ageing Portfolio at Risk Report Administrative Report October 2014 – September 2015 Page | 12 The reporting system places greater responsibility for portfolio performance on the individual BROs responsible for origination and monitoring of loans.

The reporting results tie in to the BRO’s overall performance.
Compliance Reports - NEDCO has recognised its requirements for compliance reporting.

The table below provides a list of compliance reports that NEDCO submits to the relevant Ministries.
REPORT RECEIVING BODY Strategic Plan Investments Division, Ministry of Finance Annual Operating Budget Audited Financial Statements/Annual Report Annual Performance Appraisal Report Administrative Report Board Minutes Cash Statement of Operations Ministry of Labour and Small and Micro Enterprise Development Investment Division, Ministry of Finance Ministry of Labour and Small and Micro Enterprise Development Investment Division, Ministry of Finance Ministry of Labour and Small and Micro Enterprise Development Ministry of Labour and Small and Micro Enterprise Development Ministry of Labour and Small and Micro Enterprise Development Investment Division, Ministry of Finance Ministry of Labour and Small and Micro Enterprise Development Investment Division, Ministry of Finance Ministry of Labour and Small and Micro Enterprise Development SUBMISSION PERIOD Six (6) months prior to the start of period of the plan Six (6) months prior to the start of the new fiscal year Within four (4) months of the financial year end Four (4) months after end of financial year Before March 31st each year One (1) week following confirmation Within three (3) weeks after month end Administrative Report October 2014 – September 2015 Page | 13 REPORT Quarterly Returns Reports Status of Loan/ Overdraft and Investments in Securities Portfolios and Litigation Proceedings Return of Award of Contracts Internal Audit Reports Investment Policy Document List of Deliverables by Constituency Quarterly Report Monthly Report Social Sector Initiative
 Report Public Sector Initiative Report Profile of New Social Sector Initiatives 7.2.5 Image RECEIVING BODY Investment Division, Ministry of Finance Investment Division, Ministry of Finance SUBMISSION PERIOD End of first month after Quarter End of first month after Quarter Investment Division, Ministry of Finance Investment Division, Ministry of Finance Investment Division, Ministry of Finance Ministry of Labour and Small and Micro Enterprise Development Ministry of Labour and Small and Micro Enterprise Development Ministry of Labour and Small and Micro Enterprise Development Ministry of Labour and Small and Micro Enterprise Development Ministry of Labour and Small and Micro Enterprise Development Ministry of Labour and Small and Micro Enterprise Development 14 days after month end Quarterly 14 days after end of the Quarter Annually 15 days after end of quarter 15 days after end of month As requested As requested As available NEDCO has recognised the need to position the organisation as a lead service provider for MSE development and as a first choice lender and advocate for the sector.
As such, the Company’s main strategy for improving its image as a solid micro and small enterprise finance institution includes the following: i.

Service Delivery – Improve the mind-set of front-line staff to ensure professionalism and greater sensitivity to customer needs and expectations.

Strengthen its efficiency and effectiveness at delivering its core services: financing, training, mentorship.

Administrative Report October 2014 – September 2015 Page | 14 ii.
Visibility – NEDCO must strengthen its marketing and promotional strategies so that it becomes synonymous with all aspects of entrepreneurial development support and widely accepted as the first point of entry for start-ups.

This will involve sustained activity in communities as well as on electronic media.

iii.

Integrity – Critical to maintenance of key stakeholder support is NEDCO’s ability to remain transparent, credible and reliable.
This philosophy must extend both to internal and external stakeholders.

iv.

Recognition – NEDCO must engage in recognition and promotion of successful entrepreneurs.

7.2.6 Culture NEDCO has developed the strategic framework, structure, human resource system and measurement systems to propel and maintain the level of performance necessary for organisational effectiveness.
The Company has sought to achieve that level of trust and confidence necessary to create a sufficiently powerful support base to champion and drive the process and bring others on board.

The management has become more transparent and opened two way communication channels, the process creating trust and a spirit of camaraderie throughout the organisation.
Emphasis has been placed on performance and results with the end goal being clearly articulated by management throughout the organisation to gain acceptance and ownership at all levels.

7.2.7 Risk Management The audit process has already addressed performance gap analysis and the identification of risks and controls.

The internal loans management system has implemented the planning, organising and controlling activities to minimise the effects of risk on NEDCO’s capital and earnings.
The process involves identification of critical risk issues that are addressed through consultation with Managers directed towards immediate resolution and reporting to the Audit Sub Committee.

Administrative Report October 2014 – September 2015 Page | 15 8.0 FINANCIAL OPERATIONS The largest single source of income for NEDCO is government subventions.

For the year to September 30, 2015, subventions recognised in the statement of comprehensive income amounted to $27M.
This varied from the actual amount received for the year of $25M due to the application of financial reporting rules.

The Company’s key revenue generating activity - lending to enterprises, yielded $4.1M in interest income for the year, which was a decrease of $0.75M from the preceding year.

This was largely due to a contraction of the loan portfolio because of the ongoing funding constraints under which the company operates.
Notwithstanding the overall revenue contraction the Company managed to report an overall reduction in costs of approximately $1.0M which facilitated a net breakeven position for the fiscal year.

Cash and cash equivalents held as at September 30, 2015 amounted to $6.8M of which $5.6M was held in money market funds.

9.0 LOAN PORTFOLIO NEDCO has recognised the most critical need to maintain portfolio quality at acceptable levels despite the high risk nature of this industry.
As such significant efforts were made to improve its business model, loan assessment and follow-up practices.

However, high delinquency was still reflected in the financial reporting mainly due to a high level of historical bad-debt that resides at NEDCO’s Recoveries Department.

Whilst these accounts have been fully provisioned for in our financial reporting, they have not been written off.

It is to be noted that NEDCO continues to pursue and receive collections on these accounts.
Loan accounts are transferred to the Recoveries Department for more stringent recovery measures / legal action only after the branch has exhausted all due diligence procedures for collection of the debt.

Within recent years, through improved loan assessment, follow-up and reporting procedures, NEDCO’s portfolio health has shown significant improvement.

Administrative Report October 2014 – September 2015 Page | 16 Table 1 below represents NEDCO’s performing loan portfolio.
They represent the more healthy accounts that are managed directly by the branch operations.

Many of these clients have achieved significant success and are regular repeat borrowers.

Table 1 PORTFOLIO QUALITY PERFORMANCE (Branch Accounts) Category Current 1 - 30 days 31 - 60 days 61 - 90 days 91-120 days 121-180 days Over 180 days Total Sep-15 No.
Accs Prin Bal ($) % of Total 511 176 64 0 56 52 246 1105 1,6271,043 5,471,407 1,744,387 0 725,649 730,480 4,540,431 29,483,397 55% 19% 6% 0% 2% 2% 15% 100% Conversely, Table 2 shows the portfolio quality for the same period for the entire loan portfolio, inclusive of historical accounts held at the Recoveries Department.

These figures show a disproportionately delinquent portfolio not reflective of recent improvements.

Table 2 PORTFOLIO QUALITY PERFORMANCE (Total NEDCO Accounts) Category No.
Accs Prin Bal ($) % of Total No.
Accs Prin Bal ($) % of Total Sep-14 Sep-15 14,229,952 13% Current 1 - 30 days 31 - 60 days 61 - 90 days 91-120 days 121-180 days 423 123 91 0 60 80 3,699,661 1,927,309 0 1,125,196 1,708,685 Over 180 days 4834 90,750,959 Total Administrative Report October 2014 – September 2015 Page | 17 For the twelve month period ended September 2015, NEDCO produced 379 loans at a value of $15,997,247.70 with the highest level of production for the quarter January - March 2015 recording 121 accounts valued at $5,649,094.14.
NEDCO also receives credible applicant enquiries for additional funding which the Company is unable to accommodate due to cash constraints.

This figure is estimated at above $10M per annum.

The loan trial balance recorded 5,453 loans at a value of $111.8M as at September 30, 2015.

NEDCO however recognises that the majority of historical delinquent accounts will be difficult to recover.
Sector analysis of the portfolio for the year ended September 2015 as detailed by Table 3 hereunder, indicated Retail Trade as the lead client activity with 1,607 accounts at a value of $31.2M representing 27.9% of the total portfolio, followed by Services with 937 accounts at a value of $24.8M at 22.1% of the portfolio.

Construction / Contracting occupied third position with 553 accounts valued at $12.1M representing 10.8% of the client base.
Table 3 NEDCO Sector Portfolio - September 30, 2015 Sector Retail Services Construction / Contracting Catering / Restaurant Health & Wellness Grocery Light Manufacturing Creative Taxi Transport Food Processing Education Packaging Distribution Hotel / Accommodation Meat Packaging / Retail Tourism Horticulture TOTAL # of Accounts % of Total $ Value % of Total Administrative Report October 2014 – September 2015 Page | 18 10.0 HUMAN RESOURCE AND ADMINISTRATION Management of the Company’s human resources for the period under review focused heavily on the activities of recruitment and staff development.
10.1 Recruitment The Company filled the few vacant positions by conducting several rounds of interviews.

Given the importance of having a strong, well-qualified and strategically positioned leadership, the Company also used the services of “Recruitment Experts” to attract the highest quality of candidates for the senior positions.
The following positions were filled:  Chief Operations Officer  Executive Manager Finance & Risk  Training Officer  Internal Audit Manager  Recoveries Officer  Accountant  Accounting Assistant  Facilities Officer  IBIS Programme Manager  IBIS Incubator Manager All positions at ETIIC were filled by full time staff as at the end of the fiscal year 2015 with the exception of one Training Officer.

An on the job trainee filled the position of Administrative Assistant.
10.2 Staff Training and Development NEDCO sought and realized many opportunities for staff members to gain more technical experience and expertise to enhance performance, productivity, quality of work and their general capabilities.
Staff members attended and benefited from attendance at training programmes, conferences and seminars: -  OSHA Seminar – seven (7) attendees  VIII Americas Competitiveness Forum – nine (9) attendees  Venture Capital Workshop – five (5) attendees  Dispute Resolution – one (1) attendee  Effective Writing of Board Minutes - five (5) attendees Administrative Report October 2014 – September 2015 Page | 19  MIX Marketing Leaders Conference – four (4) attendees  Fourth Caribbean Procurement conference – one (1) attendee  Ministry of Finance - “Modern Internal Control Framework for Public Procurement” – two (2) attendees  UTT - “Computer Protocol & Etiquette” – two (2) attendees  Latin Finance Investment Forum – two (2) attendees  ALJ GSB DLIC Conference 2015 - “Learn to Disrupt-Disrupt to Learn” – one (1) attendee  NBIA Conference – one (1) attendee  UNDP Forum - “Future of the Caribbean” – one (1) attendee  UWI Biennial International Business, Banking and Finance Conference – two (2) attendees  CARISCIENCE, UNESCO & TWAS – “Strengthening and Utilizing S&T in the Caribbean” – one (1) attendee  MOLSMED - “Best Practices in Labour Migration” – one (1) attendee  ALJ GSB - “Transformative Entrepreneurship” – four (4) attendees  CMF VI - “Microfinance Solutions for Inclusive Growth” – three (3) attendees  ECA - “Contract Employment in the Public Sector & State Enterprises” – one (1) attendee  Institute of Internal Auditors & ACCA - “Get It Right” – one (1) attendee 10.3 Compensation & Benefits Revised
 remuneration for staff, as per the Chief Personnel Officer’s agreement, was implemented effective January 2015.
Payment of salary arrears for the period September 2008 to December 2013 was partially settled with currently employed staff.

Outstanding payments remain unsettled for former employees covered under the agreement due to funding constraints, in addition to arrears for travelling and cellular allowances for both current and former employees.
Several former employees were aggrieved by the non-payment of arrears and have sought redress through their representative unions – the Banking Insurance & General Workers Union (BIGWU) and the National Union of Government & Federated Workers (NUGFW) while others are pursuing other legal remedies.

The unions have referred the matter to the Conciliation Unit of the Ministry of Labour and Small and Micro Enterprise Development.
Administrative Report October 2014 – September 2015 Page | 20 11.0 INDUSTRIAL RELATIONS Senior and mid-level management have been exposed to training programmes to address changes brought about through existing/new labour legislation.
The Company has produced an employee handbook as a policy guide covering employment, wage and salary administration, employee benefits, code of conduct and business ethics, personal administration, performance management, training and development, health and safety, management/worker relations and corporate dress code.
11.1 Employee Benefits – this covers vacation leave, sick leave and extended sick leave, time off for urgent personal business, bereavement leave, maternity and paternity leave, examination leave and leave for National Service.

Benefits also extended to the provision of uniforms and an Executive Medical Programme for management staff.
11.2 Safety and Health Management System – this necessitated the development of a Health and Safety Policy and Procedures Manual and implementation of Safety Management System.

Management has conducted the necessary audit and tries to promote zero tolerance to incidents/accidents.

11.3 Training and Development – implementation of annual training plan, with performance indicators to measure improvements in staff competency levels, as reflected in productivity levels and staff morale.
11.4 Recruitment – implementation of psychometric testing and more comprehensive back ground checks, particularly for senior/management positions.

The Company has implemented a recruitment process with considerable emphasis on academic qualification, experience and trainability.

11.5 Orientation – review and enhancement of the system to reduce the transition period for new staff and develop clear understanding of corporate culture and operational requirements.
11.6 Human Resource Information System – implementation of an automated HRIS with improved real time information.

Administrative Report October 2014 – September 2015 Page | 21 12.0 INTERNAL AUDIT The Internal Audit Department functions as an independent and objective assurance and consulting activity that is guided by a philosophy of adding value to improve the operations of NEDCO.
It assists NEDCO in accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the organization's governance, risk management, internal control.

The department became better equipped to fulfil this function with the recruitment of the Internal Audit Manager in September 2015.
Despite the staffing constraints within the Internal Audit Department during the financial year ended September 30th 2015, several audits were conducted arising from which recommendations were made to remedy issues noted.

Reports on these audits were taken to the Audit Committee of the Board of Directors as is required.

NEDCO’s external auditors have completed the audits of the Company’s draft financial statements for years ended 2013 and 2014.
13.0 PROCUREMENT Procurement procedures have been established to standardize acquisition methods for goods and services to ensure value for money and transparency for all our procurements.

The Procurement Procedure Summary Guide, as amended April 2012, serves to standardize procurement methods for goods and services purchased by NEDCO, and to achieve value for money in all our procurements.
Tender procedures have been established to ensure that NEDCO operates on the principles of Value for Money, Transparency and Accountability.

The tender policy covers the acquisition of goods, provision of services and undertaking of works.

Contracts in excess of $250,000.00 require Board’s approval.

Within the ambits of the tender procedures, NEDCO invites Expressions of Interest (EOI) to ensure transparency within the process.
A database of prequalified and preferred suppliers has been established for janitorial services, security services and insurance brokerage to service the execution of tenders during the EOI exercise for goods and services above $250,000.00.
During the period under review NEDCO employed the “Request for Proposals” process to select DAVYN for the supply and installation of an Integrated Loans and Administrative Report October 2014 – September 2015 Page | 22 Accounting Management Software at a cost of TT$1,047,640.00 payable in tranches during the period of installation.
The package includes commissioning, training and after sales service and will be delivered by DAVYN’s team of specialised consultants to provide the following solutions:  Microsoft Dynamics GP 2013  Binary Stream Loans Manager  Microsoft Dynamics CRM Other major services were procured for IBIS as listed in the following table: Location Diego Martin Diego Martin Point Fortin Point Fortin Sangre Grande Sangre Grande Service Provider Service Leef Company Limited Construction of MDCUM & Galt and Littlepage Ltd Francis Bobb General Contractors MDCUM & Total Office Limited Imcon Enterprises Limited Galt and Littlepage Ltd Outfitting of Office Office Space Outfitting of Office Furniture Construction of Office Space Outfitting of Office Furniture Construction of Office Space Cost $386,437.95 $104,974.30 $397,000.00 $145,733.13 $158,368.80 $45,448.00 $235,000.00 Mixed Cohort Mixed Cohort University of the West Indies COSTAATT Furniture Incubator Training Incubator Training $190,625.00 14.0 ENTREPRENEURIAL TRAINING INSTITUTE AND INCUBATION CENTRE (ETIIC) The Entrepreneurial Training Institute and Incubation Centre (ETIIC) was established in 2005 to provide support services for MSE development and to facilitate research activities.
ETIIC’s three (3) centres are strategically located at Barataria, Chaguanas and San Fernando.

The premises are equipped with training rooms, conference facilities and libraries.

ETIIC offers a comprehensive suite of developmental and support services to latent, existing and aspiring entrepreneurs in addition to a range of other stakeholders.
Administrative Report October 2014 – September 2015 Page | 23 ETIIC’s primary objectives are:  To be an economic development tool designed to accelerate the growth and success of entrepreneurial businesses through an array of business support resources and services.

 To produce successful firms that transform into financially viable freestanding enterprises.

 To develop a supportive and stimulating environment for the entrepreneur.

 To provide common interlinked business services.


 To be the flagship institution generating entrepreneurial knowledge and informing entrepreneurship policy.

 To produce an entrepreneurial class capable of competing in the global market.

The following report highlights the activities, initiatives and accomplishments for the fiscal year October 2014 to September 2015.

14.1 Training The development and delivery of SME relevant training programmes is a key function of ETIIC.
Programme content is based on assessing and anticipating the needs of entrepreneurs in the local environment, and consultants/trainers are sourced from a pool of well qualified and experienced professionals that has been built up over the years.
Programmes were also designed and delivered for a number of new external clients including, The National Institute of Higher Education, Research, Science and Technology (NIHERST), Caribbean Gas Chemicals Limited, The Environmental Management Authority and The Ministry of Community Development.
Further information on two (2) of these corporate clients is detailed hereunder: i. NIHERST – NEDCO partnered with this organisation to provide entrepreneurial skills training to persons in the Prime Minister’s Award for Scientific Ingenuity.

While the participants have great inventive capacity, the aim of the training was to develop their entrepreneurial capacity to assist with the commercialisation of their ideas.

ii.
ii.

Caribbean Gas Chemicals Limited – Caribbean Gas Chemicals Limited (CGCL) is a Japanese-led consortium comprising of Mitsubishi Gas Chemical Company, Mitsubishi Corporation and Massy Holdings (formerly Neal & Massy Holdings).

The Trinidad-registered company was Administrative Report October 2014 – September 2015 Page | 24 formed to advance the development and commercialization of a “Natural Gas to Petro-chemicals Complex” at the Union Industrial Estate in La Brea.
This targeted training programme was developed to provide support to entrepreneurs in the La Brea area to better position them to benefit from contracts that may be available from the establishment of the complex.

Overall, a total 2,770 individuals benefited from the training initiatives of NEDCO in 2014-2015 which included programmes such as Steps to Starting Your Business, Record Keeping & Cash Management, Costing & Pricing and Tendering for Contracts.
This figure represents a 290% increase from the previous fiscal when we trained 952 individuals.

14.2 Special Training Initiative NEDCO / UWI Fourth (4th) Entrepreneurship Boot Camp The NEDCO UWI Office / ETIIC Team collaborated to provide solid support for the preparation, facilitation, technical guidance and related services for a very focused and intense edition of the Entrepreneurship Boot Camp over a three (3) day period.
The programme included sessions on Idea Generation; Innovation; Business Model Canvas; Leadership; Intellectual Property; Marketing & Branding; Managing People and Financing.

The formal training element was conducted through a mix of external facilitators, NEDCO Officers in addition to a very informative session on Intellectual Property conducted by officers of the Ministry of Legal Affairs.
There were also three (3) interactive sessions by guest entrepreneurs who shared the practical experiences on their entrepreneurial journey.

Boot Camp 2015 provided an immersion programme for the ten (10) attendees in the various skills and disciplines necessary to increase the likelihood of success for their intended businesses.
The presence of dedicated NEDCO officers for the entire three (3) day period carried the added advantage for the participants to:  Clarify any issues regarding the application of academic/theoretical concepts to actual business practices  Seek assistance with the various elements in the preparation of the Business Canvas/ Business Plan  Seek assistance with the actual application process for NEDCO and IBIS Administrative Report October 2014 – September 2015 Page | 25  Gain information on related support services for the MSE sector available through Fairshare, i2i and ExportTT Research and Development Fund These initiatives were conducted with the view of assisting the participants to prepare and present a business canvas.
The prize structure was as follows:  1st place - $20,000.00  2nd place – $14,000.00  3rd place – $8,000.00  4th place – $5,000.00  5th place – $3,000.00 14.3 Business Advisory In addition to training, ETIIC also provided Business Advisory Services to the public at no cost.

These services were provided by our Regional Business Advisors and entailed general advice on business setup and all areas of business operations.

These were delivered mostly in one-on-one sessions.
Two hundred and eighty one (281) persons benefited from Business Advisory services for the period under review.

These individuals comprised one hundred and twenty two (122) males and one hundred and fifty-nine (159) females.
They came from varying parts of the country and the sessions covered a wide range of business activities, including:  Publishing  Events planning  Retail – Clothing  Bookbinding, photocopying and internet services  Construction services  Agro-processing  Hydroponics  Health foods  Natural juices\punches Administrative Report October 2014 – September 2015 Page | 26 14.4 Outreach The unit also engages and is engaged by numerous entities, both public and private, to increase entrepreneurial awareness throughout Trinidad and Tobago.
These engagements are fulfilled via outreach efforts that include:  Facilitating information sessions at schools and other educational institutes  Participation in various conferences  Partnering with stakeholder groups including Credit Unions, Regional Corporations, Constituency Offices, Educational Institutes and various Ministries  Setting up of information booths in strategic areas These outreach efforts have been conducted throughout the country in areas including: Santa Cruz, El Socorro, Arouca, Tacarigua, St Augustine, Maloney, Arima, San Juan Chaguanas, Couva, Carapichima, Fyzabad, Palo Seco, Marabella, La Romaine, Gasparillo, Siparia, Freeport, Tacarigua, Tunapuna, Barataria, Maraval, Moruga, Diego Martin, D’Abadie, Spring Village, Penal, Claxton Bay and Point Fortin.
Initiatives such as these have served to promote the services offered by NEDCO, increase the company’s profile and to highlight entrepreneurship as a viable option for the achievement of career and personal goals.

The total number of persons impacted by outreach efforts was 3,851.

14.5 Library and Research The Library was able to procure software in the previous fiscal year which will allow ETIIC to put its catalogue of material online.

This process is ongoing.


In addition, the department executed a tracer study for participants in the 2012 and 2013 editions of the Boot Camp.

It highlighted that 10 persons started a business after participating in the event and have employed 21 persons.

This was the company’s first tracer study since 2009.

In addition, total attendees to the libraries during the period were two hundred and eighty-one (281) persons.
Administrative Report October 2014 – September 2015 Page | 27 14.6 Reporting Function During the period under review, ETIIC submitted monthly reports to the Promotions and Development Committee of NEDCO on all its activities.

Staff meetings were held monthly and minutes submitted to Head Office.

Other reports on training and outreach activities were also submitted when requested from the line ministry.
By achieving its goals, the department will be well positioned to continue fulfilling its mandate and to assist NEDCO in its role as the leader in the MSE sector.

15.0 NATIONAL INTEGRATED BUSINESS INCUBATOR SYSTEM (IBIS) The National Integrated Business Incubator System (IBIS) has been operational since October 2011.

NEDCO and the line ministry entered into an MOU for the operation of IBIS in September 2011.
The MOU inter alia, outlines NEDCO’s roles and responsibilities as the implementing agency for IBIS; Governance Structure; Intellectual Property and Terms and Length of Engagement.

IBIS is a comprehensive system that centres on supporting the prospective entrepreneur, as well as those already operating micro and small businesses that are seeking to grow.

The programme aims to assist all selected candidates with the appropriate support, skills and networks to create successful businesses.
IBIS is driven by its main objective i.e.

to enable and inspire the creation of successful sustainable businesses that are (a) novel, entrepreneurial and globally competitive and (b) yield value and produce high quality rewarding employment opportunities.

This overarching objective embodies all of the elements of IBIS – its phases, the learning processes, the applied techniques, and the overall framework.
15.1 Programme Activities The following activities were completed during October 2014-September 2015: a.

Marketing and Promotion In line with its mandate to positively enhance the MSE landscape of Trinidad and Tobago.

Almost all IBIS clients and staff members on a rotational basis participated in forty one (41) events including seminars, conferences, workshops, boot camps and business mixers.
These outreach and networking activities also served to create programme awareness to prospective IBIS clients and maintain the IBIS profile as a viable option for support of small and micro enterprises throughout Trinidad and Tobago.

Administrative Report October 2014 – September 2015 Page | 28 b.

Client Selection Process Client Selection Diagnostic Tool The programme developed a thorough diagnostic tool for Pre-Incubation.
The primary goal was to strengthen the Client Selection process which allows the streamlining of prospective clients into two specific arenas: (i) Remedial training and (ii) Continuation to Pre-Incubator training.

The programme also sought to ascertain whether or not the client needed fast- tracking into the Incubator phase or qualified for exemption from specific modules.
Two documents were drafted for review in this period by the programme’s service providers: the Pre-Incubator diagnostic tool and the Fast tracking assessment instrument.

Thirty seven (37) candidates were interviewed in March 2015 with nine (9) advancing to the next phase of this process.

The Entrepreneurial Mind-set Self-Assessment was distributed to the nine successful clients via email.
One hundred and ten (110) applicants were interviewed in April 2015 with forty three (43) selected for the next phase of this process.

The Pre-Incubator Diagnostic Assessment (PIDA) was administered to fifty one (51) candidates by COSTAATT in April, 2015.

Two clients were exempted from the PIDA.

COSTAATT submitted the results of the PIDA on 30th April, 2015 with recommendations for each client.
The Pre-Incubator Orientation was held on 28th May, 2015 at the Atrium in El Socorro for the fifty three (53) clients successful to the IBIS Pre-Incubation Training.

Pre- Incubation Training began on 1st July 2015 at ETIIC San Fernando and at the San Juan/ Barataria Incubator (The Atrium).

The Pre-Incubator Fast Tracking Assessment was administered by The Department of Management Studies, UWI.

This was a two-fold assessment, the first part composed of twenty-five (25) questions.
The second phase involved interviews which were conducted on the 15th and 17th July, where nineteen (19) prospective clients were screened.

UWI submitted their Fast Tracking Report on the 21st July 2015.

Of the nineteen (19) clients assessed, two (2) were highlighted for Full Fast-Tracking and fifteen (15) for Partial Fast-Tracking.

Two (2) clients were unsuccessful and would continue with the full Pre-Incubation Training.
Administrative Report October 2014 – September 2015 Page | 29 c. Pre-Incubation Application status – As at September 2015, there have been a cumulative total of six hundred and thirty (630) IBIS applications from persons interested in entering the programme.

This number continues to increase weekly.

The previous fiscal year ended with a total of four hundred and thirteen (413) IBIS applications, with two hundred and seventeen (217) new applicants for the fiscal year October 2014 to September 2015.
Completion of Pre-Incubation Training - To date, a total of two hundred and forty (240) Pre-Incubation candidates from Penal, Sangre Grande, Point Fortin, Laventille/San Juan/Barataria, Diego Martin/Carenage, Couva and Chaguanas were accepted into the programme, with one hundred and thirty four (134) candidates completing Pre-Incubation Training, and one hundred and two (102) candidates successfully graduating onto the Incubation Phase.
There are a total of thirty two (32) clients classified as Active Pre-Incubation Clients; they are preparing to present their proposals to be considered for funding.

Of this number, seventeen (17) clients have been Fast-tracked.

d. Incubation Site Operations - The Point Fortin Business Incubator was outfitted in May 2015 and the Diego Martin site launched in July 2015.

The addition of these two sites brought the total number of incubators nationwide to five (5).
These are Penal, Sangre Grande, Laventille/San Juan/ Barataria, Diego Martin and Point Fortin.

Client Management - For the period under review, there were thirty two (32) Pre-Incubation clients and one hundred and four (104) Incubation clients operating across all the targeted communities, both on site and off site, inclusive of seventeen (17) Fast-Tracked clients.
These clients operate a wide range of businesses spread throughout Trinidad and Tobago, ranging from software development to light manufacturing.

They all benefit from the services offered by the programme, including mentorship, access to financial and human resources and information and communication technologies (ICTs.)
Administrative Report October 2014 – September 2015 Page | 30 Agreements - Over the period, there were sixty seven (67) Seed Capital Financing Agreements and sixty two (62) Equipment Financing Agreements signed, and a commitment for funding totalling $6,587,692.00 in approved seed and equipment financing.

Incubator Managers are assigned to each site and are responsible for providing guidance and oversight to the clients assigned to them.
Clients have the option of operating offsite or within one of the incubators.

To access the services provided by IBIS, these clients have executed Incubation Services Agreements.

A total of eighty six (86) Incubator Services Agreements have been signed.

To operate within an incubator, the Incubator Residency Agreement is a prerequisite.

A total of twenty three (23) Incubator Residency Agreements have been signed.
ICT Equipment - In addition to the business support services available at the various incubator sites, clients are given the option of accessing a laptop for use while participating in the IBIS programme.

A total of seventy one (71) laptops have been disbursed to clients and are maintained periodically to ensure that the lifespan of the equipment is maximised.
Active Businesses - There are currently sixty three (63) active businesses within the programme generating revenue through the provision of various goods and services.

This revenue allows them to improve their standard of living and that of others through meaningful employment.

General Meetings - Client-IBIS Management - General Meetings are designed to improve the communication between IBIS Management and the clients as well as create an environment for clients to interact with their peers.
Clients are encouraged to state any issue that may be affecting the effective operation of their business as well as identify areas in which they may require additional training.

This creates an opportunity for the provision of additional training to ensure clients are able to successfully manage their business.

These sessions are led by Incubator Managers and facilitated by subject matter experts.

Across all sites, these meetings were conducted at least once per quarter.
Administrative Report October 2014 – September 2015 Page | 31 15.2 Incubator Stakeholder Relationships Strategic stakeholder relationships were maintained with a number of agencies, internationally, regionally and locally, to ensure IBIS clients are provided with access to the best networks to contribute to their success.
In April 2015, the IBIS Programme Manager presented at National Business Incubation Association’s (NBIA) 29th International Conference on Business Incubation held in Denver, United States of America.

He presented on the topic “Business Incubation in Developing Economies: Overcoming the Challenges” which highlighted the strategies used and lessons learnt by IBIS to conference participants from all over the world.
This high level interaction has paved the way for collaboration between IBIS and its international counterparts.

In August 2015, an Accelerate Caribbean Team visited as part of a year-long partnership to build capacity within the IBIS Programme.

IBIS was selected as one of two business enablers selected in Trinidad and Tobago, and ten throughout the Caribbean from a field of over fifty (50) applications.
This programme is led by infoDev as a part of their Entrepreneurship Programme for Innovation in the Caribbean (EPIC.)

IBIS was also selected as the NBIA Global Ambassador for Trinidad and Tobago.

This role means IBIS is the point of contact for all NBIA members in this country as well as the conduit through which all information is disseminated from the organisation.

IBIS will also function as a thought leader and provide information related to the needs of the region.
Regionally, relationships forged from the World Bank’s Info Dev Training in 2013 with incubator professionals from Barbados, Jamaica, St. Vincent and the Grenadines and St. Lucia have been maintained and strengthened through mutually beneficial dialogue.

Locally, relationships have been sustained with all key players on the MSE landscape.
This includes ministries, state agencies, Trinidad and Tobago Chamber of Commerce, regional chambers, other incubators (BizBooster, CED, UTT), lending institutions (YBTT, Banks, Credit Unions) and NGOs.

Administrative Report October 2014 – September 2015 Page | 32 15.3 Mentorship The programme has contracted forty one (41) highly qualified and experienced mentors with diverse backgrounds ranging from accounting to human resources management.
The impact of these mentorship relationships has been positive as clients experienced tangible outcomes.

They included: streamlining of their business plans, with specific emphasis on financial projections, and enhanced marketing of their products/services coupled with an understanding of marketing distribution channels.
For the period under review, a cumulative total of one thousand, five hundred and two (1502) structured mentorship (one hour) sessions were held as opposed to a total of one hundred and forty two (142) structured mentorship sessions held in the previous fiscal year.
15.4 Commercial Incubators In September 2014, Cabinet agreed to, inter alia, the investment of the sum of $7.5M over five (5) years and $4M over four (4) years in the Arthur Lok Jack Graduate School of Business’ (ALJGSB) BizBooster, and Caribbean Industrial Research Institute’s (CARIRI) Centre for Enterprise Development, respectively, to support the implementation of the commercial business incubators of the ALJGSB and CARIRI.
The broad objectives of these commercial incubators are in line with IBIS, namely, to provide support in the growth and development of entrepreneurs in Trinidad and Tobago.

15.5 Financial Operations The programme is funded by the Government of the Republic of Trinidad and Tobago through the Ministry of Labour and Small and Micro Enterprise Development.

Funds were disbursed via established accounting practices used to govern state agencies.
A total of $13,019,111.00 was spent on IBIS’ operations during the fiscal year 2015.

The total seed capital and equipment financing approved was $6,587,692.00, with $3,085,596.11 being disbursed as at September 30, 2015.

This variance occurred as funds approved for clients were accessed as their business developed and only when required.

Further funds will be disbursed as the programme continues.
Administrative Report October 2014 – September 2015 Page | 33 16.0 CHALLENGES AND ACTIONS NEDCO, inclusive of ETIIC and the IBIS programme has continued to deliver the support required for new and existing entrepreneurs not only to survive, but also thrive.

However, there have been specific challenges.
These challenges have been met by the implementation of specific strategies, as stated in the following table: NEDCO OPERATIONS CHALLENGE MEASURE / ACTION TAKEN Inadequate entrepreneurial diagnostic methods Portfolio at Risk in excess of industry average Inadequate Risk Management Measurement to ensure governance processes and internal controls are effective and efficient Retraining and retooling of staff Implementation of “the 360 Degree Assessment” for client grading and reporting  New delinquency policy developed and implemented with new reporting and quality control systems.
 Staff retrained  Use of collection agencies Identification of critical risk issues and mitigation through consultation with managers directed towards immediate resolution and reporting to Audit Sub Committee Internal Audit to undertake comprehensive scope of work to provide reasonable assurance for compliance and define measures of accountability ETIIC CHALLENGE MEASURE / ACTION TAKEN  Expanding portfolio of corporate  clients  Development and execution of industry specific training courses  Engaging activity in dedicated research Increased marketing effort, including networking  Collaboration with academia, other service providers, researchers and subject matter experts Administrative Report October 2014 – September 2015 Page | 34 IBIS CHALLENGE MEASURE / ACTION TAKEN Operational/ Logistical/ Administrative Challenges  Navigating the administrative systems to procure goods and secure payments has been difficult and time consuming Procedural Challenges  Lengthy delays when accessing goods because of bureaucracy  Delays in payments to mentors and clients Technological Challenges  Some sites experienced ICT Operational/ Logistical/ Administrative  Existing systems were examined and improvements made Procedural  Systems used to process payments were examined and simplified to improve efficiency.
A reduction in cheque preparation turnaround time was realised.

Direct deposits were introduced as an option to further reduce processing time.

Technological  Action taken to change service challenges from service providers causing connectivity issues.

providers to improve service across all sites Notwithstanding its challenges NEDCO has been resilient and continues to fulfil its mandate and as a viable and relevant service provider to the micro and small enterprise sector.
Administrative Report October 2014 – September 2015 Page | 35 NATIONAL ENTREPRENEURSHIP DEVELOPMENT COMPANY LIMITED STATEMENT OF FINANCIAL POSITION Appendix I Assets Current Assets Cash and cash equivalents Accounts receivable and prepayments Other financial assets September 30 2015 Unaudited 2014 Audited 1,218,325 1,218,529 928,213 1,758,718 5,587,759 9,465,421 Total Current Assets 8,024,613 12,152,352 Non-Current Assets Loans Property, plant and equipment 19,961,212 1,793,046 22,083,056 1,833,416 Total Non-Current Assets 21,754,258 23,916,472 Total Assets 29,778,871 36,068,824 Liabilities and Shareholder's Equity Current Liabilities: Accounts payable and accruals Total Current Liabilities Non-Current Liabilities: 12,507,555 12,507,555 17,365,493 17,365,493 Deferred income - Government grants Total Liabilities 3,141,276 15,648,831 4,573,291 21,938,784 Shareholder's Equity: Stated capital Contributed capital Accumulated deficit Total Shareholder's Equity 3 150,863,149 (136,733,112) 3 150,863,149 (136,733,112) 14,130,040 14,130,040 Total Liabilities and Shareholder's Equity 29,778,871 36,068,824 Administrative Report October 2014 – September 2015 Page | I NATIONAL ENTREPRENEURSHIP DEVELOPMENT COMPANY LIMITED STATEMENT OF COMPREHENSIVE INCOME Appendix II For the year ended September 30 2015 Unaudited 2014 Audited Income: Revenue Grants from the Government of Trinidad and Tobago 26,432,016 27,095,063 Loan Interest Investment Income Other Income Expenses: 4,165,314 4,804,686 99,869 65,883 953,946 970,795 31,651,144
 32,936,427 Operating Expenses 30,423,847 32,237,527 Development Support Projects 1,214,425 526,958 Interest Expense Loan Loss 12,872 12,704 - 159,238 31,651,144 32,936,427 Surplus/(Deficit) for the year - - Administrative Report October 2014 – September 2015 Page | II IBIS FINANCIALS – YEAR TO DATE AS AT SEPTEMBER 2015 Appendix III Administrative Report October 2014 – September 2015 Page | III IBIS Active Businesses Generating Sales No.
Active Businesses (Generating sales) Appendix IV 20 18 16 14 12 10 8 6 4 2 0 PENAL SANGRE GRANDE POINT FORTIN SAN JUAN DIEGO MARTIN CHAGUA NAS COUVA No.
Active Businesses (Making sales) 8 8 8 18 13 3 5 Administrative Report October 2014 – September 2015 Page | IV Appendix V Staff at the Trade & Investment Convention (TIC) 2015 (l-r: Jameela McDavid, Hannah Hargreaves) Administrative Report October 2014 – September 2015 Page | III (l-r: Navin Bisson, Keenan Singh, Anthony Joseph, Brian Christopher – Winner, Azard Rasoon, Vas Williams, Treldon Layne, Julian Henry) Award Recipients of Entrepreneur of the Quarter with Mr. Julian Henry, CEO Administrative Report October 2014 – September 2015 Page | IV Finalists of the NEDCO/UWI Entrepreneurship Boot Camp with Mr. Julian Henry, CEO (l-r: Afiya Francis, Adrian Foster, Daniel Albertie, Graham Ramone, Shenelle Hills, Michelle Roopnarine, Julian Henry) Administrative Report October 2014 – September 2015 Page | V (l-r: UTT Representative; J. Henry [NEDCO CEO]; Prof. D. Narinesingh [UTT President]; H. Narinesingh [Export Centres Co. Ltd CEO]) Discussions at the GEW Launch Administrative Report October 2014 – September 2015 Page | VI