2008/2009 annual report labour portfolio committee session 10 november 2009
DESCRIPTION
2008/2009 Annual Report Labour Portfolio Committee Session 10 November 2009. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 - PowerPoint PPT PresentationTRANSCRIPT
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
2008/2009 Annual Report
Labour Portfolio Committee Session
10 November 2009
Overview• Background
• 2008/9 Developments
• Performance against 2008-2009 SLA
• Financial Performance
• Cash Resources
• Audit Findings
• Challenges
• Training Lay-off Scheme
• Impact of Skills Development
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
• Accounting Authority appointed in April 2008.
• Mechanisms for good corporate governance put in place.
• Executive Management Team appointed.
• New organizational structure implemented in July 2008.
• Strategic plan developed to , inter alia, curb over-expenditure, improve
performance and enhance compliance.
Background
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
• Compliance with AGSA, Dept of Labour and SAQA requirements.
• Impact of strict financial controls on over-expenditure.
• R38 million DG Call.
• Mandatory Grant payment backlog eradicated.
• R28,5 million disbursed against pre – 2008/9 projects.
• Strides made on provider accreditation and learner achievement.
2008/9 Achievements
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOHMthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
Performance against 2008-9 SLA
NSDS Indicator2008/2009
TargetsAchieved Variance
1.1 SSP Annual update Achieved None
1.2 Training on SDF guide
250 156 -94
2.5 BEE firms and Co-ops 104 14 -90
2.7 ABET: Entered 510 1033 523
ABET: Completed 255 549 294
2.8 Employed: Entered 650 669 19
Employed : Completed
640 717 77
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOHMthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
Performance against 2008-9 SLA
NSDS Indicator2008/2009
TargetsAchieved Variance
3.2 NLPs, NGOs, CBOs & Co-ops
38 18 -20
4.1 Unemployed: Entered 300 1250 950
Unemployed: Completed 150 1504 1354
4.2 FET/HET Workplace Exp. 0 117 117
4.3 NVC: Entered 100 81 -19
NVC: Sustainable Ventures
20 0 -20
5.1 ISOEs 3 3 0
5.2 NVC Training Providers 3 3 0
Financial Performance
Total IncomeAdministration
reserveMandatory
Grants Discretionary
Grants
Total revenue 184 066 19 948 99 591 53 193
Total expenses 132 151 27 561 78 309 14 947
Net surplus/(deficit) 51 915 (7 613) 21 282 38 246
Expenditure as % of revenue 72% 138% 79% 28%
Prior year comparative % 95% 193% 81% 158%
Financial Performance (Cont’d)Record of Surplus/(Deficit )
2006/07 2007/08 2008/09 Comment
Administration (20 738) (16 238) (7 613) Deficit predominantly attributed to completion of Administrator engagements
Discretionary Grants (19 310) (27 687) 38 249 Accounting Authority decision to limit Discretionary Grant allocations to facilitate the correction of prior periods over-commitments
Mandatory Grants 21 776 16 679 21 282 Mandatory Grant surplus is re-directed to Discretionary Grant Reserves annually. These Grants disbursements are currently paid quarterly in compliance with legislation.
Cash Resources
R'000
MAPP-SETA Cash at bank 172 749 MAPPP-SETA current liabilities 33 532
Mandatory grants 24 305 Discretionary grants 3 473 Inter-SETA transfers 216 Administration expenses 5 538
139 217 Provision-refundable to employers under the threshold of R500 000 6 980
132 237 Post-retirement benefit obligations 3 019
129 218 Commitments 94 549
R 34 669
Audit findings based on three factors:
• Inaccuracies of records maintained during 2007/2008 which were highlighted in the Audit Report for the year ended 31 March 2008;
• Inadequate hand-over of the MAPPP-SETA affairs from the Administrator to SETA Management; and
• Initial staff instability during the appointment of the new Accounting Authority.
Significant portion of irregular expenditure of R 4,651m, whilst incurred during 2008/2009 financial year, resulted from service providers engaged by the Administrator prior to completion of their term of office and can thus be considered as a continuation of the costs incurred whilst the SETA was under administration.
Audit findings
Annual General Meeting
• Section 51(1)(a) of the PFMA states that “An Accounting Authority for a public entity must ensure that the public entity has and maintains effective, efficient and transparent systems of financial and risk management and internal control”.
• The SETA is required to provide its stakeholders with information on its progress insofar as financial and non-financial performance.
• The SETA must gain acceptance and approval of its Annual Report from the stakeholders.• To comply with the above, the SETA held an Annual General Meeting on 28th November
2009 to which stakeholders were invited.• The cost of attending to this requirement was R22 681,11 for the hire of the venue
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
• Communication.
• Battered image.
• Limited revenue.
• Board and staff development.
• Apprenticeship administration.
• Review of trades and qualifications.
• Certification backlog.
Challenges
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
• R5 million seed funding and infrastructure committed to TLS Project.
• Project Team appointed and project plan put in place.
• Board TLS Task Team appointed to serve a sounding board to the Project Team.
• Service provider to assist with pilot and skills transfer appointed.
• Working relationship established with CCMA and NSF.
• CCMA updates received weekly. To date no companies in our sectors have applied for
enrolment into TLS.
Training Lay-off Scheme
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
• Research on companies in distress underway to determine required information to feed into
the CCMA process. To this end, following has been done:
Advocacy campaign which commenced on 2 November 2009.
Development of an instrument for measuring the impact of the recession.
A sample of 60 potential participant companies identified for assessment.
Assessment to commence on 5 November 2009.
Training Lay-off Scheme (Cont’d)
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
• 3850 learners certificated to date for 2005/2009 period.
• The provincial spread of these learners is as follows: Eastern Cape - 436; Gauteng – 1115;
Free State - 58; KwaZulu Natal - 519; Limpopo - 231; Mpumalanga - 265; Northern Cape -
271; North West - 316; Western Cape – 639.
• Verification of results of approximately 2900 learners currently underway after a campaign of
closing a large number of old projects.
• Newly funded projects on course to deliver more learner results in near the future.
Impact of Skills Development
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
Eastern Cape 436
Gauteng 1115
KZN 519
Free State 58
Limpopo 231
Mpumalanga 265
North West 316
Northen Cape 271
Western Cape 639
Impact of Skills Development
0
200
400
600
800
1000
1200
Series1
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
.
Impact of Skills DevelopmentTitle of Programme Number
1. Bag Making 18
2. Bookbinding Craft Cutting 6
3. Cutting 33
4. Can Making 21
5. Carton Making 33
6. Machine Minding 29
7. Manufacturing Machine Minding 24
8. Finishing Machine Minding 34
9. Electronic Composition 4
10. Electronic Origination 108
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
.
Impact of Skills DevelopmentTitle of Programme Number
11. End Making 12
12. Gravure 25
13. Gravure Machine Minding 28
14. Gravure Cylinder Processing 14
15. Laminating 6
16. Decorating 14
17. Lithography: Paper Section 201
18. Photo Lithography 5
19. Printers Electrician 13
20. Printers Mechanic 23
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
.
Impact of Skills Development
Title of Programme Number
21. Roll Label Machine Minding 26
22. Rotary Off-set Machine Minding 169
23. Paper Sack Making 14
24. Flexography 56
25. Ruling - Cutting 3
26. Machine Adjuster 7
27. FETC: Craft Enterprise – NQF 4 23
28. NC: Craft Production – NQF 2 737
29. NC: Craft Operations Management - NQF 5 270
30. NC: Journalism – NQF 5 54
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
.
Impact of Skills Development
Title of Programme Number
31. FETC: Live Event Technical Production – NQF 4 167
32. FETC: Sound Technology – NQF 4 119
33. FETC: Arts and Culture Administration – NQF 4 163
34. FETC: Craft Enterprise: NQF 4 348
35. FETC: Design Foundation – NQF 4 423
36. FETC: Film and Television – NQF 4 126
37. FETC: Heritage Practice – NQF 4 187
38. NC: Music Industry Sound Technology – NQF 5 202
39. FETC: Performing Arts – NQF 4 102
TOTAL 3850
JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319
CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7 th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530
• Zanele Zondi says: I joined DRAFTFCB as an intern in November 2007 … I worked on brands such as Eskom, Toyota, SABC… I have since been working on more brands such as Lexus, City Press, Sportstake, Adcock Ingram, Tiger Brands, FNB . I was fortunate enough to win myself a silver Loerie Award this year.
• Feziwe Tobi and Ncediswa Makuleni are running their own production house called Alpine Media with exclusive rights for making music videos as well as filming live performances for Hidden Prospects, a private music label producing 10 Digits (a hip hop group) in Uitenhage.
• 5 learners, Yvonne , Phumla, Ncumisa, Mantombi, and Nomfundo got together to form their own clothing and design business called Abenzi Clothing. These learners were on the Craft Enterprise and Craft Operations Management learnerships last year. ATI provided them space for about 6 months to start-up their business. Thereafter they moved to their own offices in North End. They are making casual wear ,bedding, curtains and African wear for all age groups.
Impact of Skills Development (Cont’d)
Thank You!!!