2008 annual report - mqa report 2007-2008.pdf · annual report to the minister of labour, mr m....
TRANSCRIPT
AN
NU
AL
REPO
RT 2
007/
2008
MIN
ING
QU
ALI
FIC
ATIO
NS
AU
TH
ORI
TY
ANNUAL REPORT
2007/2008
“Digging with Skills and Knowledge”
Mining Qualifications Authority Private Bag X118
Marshalltown2107
4th Floor Union Corporation Building74-78 Marshall Street
MarshalltownJohannesburg
Design and Layout www.blackmoon.co.za
RP86/2008ISBN: 978-0-621-37814-6
�1
Section 1: General Information
section
1.1StrategicOverviewbytheChairperson 5
1.2BoardMembers 7
1.3BoardandCommitteeStructure 8
1.4BoardMeetingattendance2007/2008 9
1.5OperationalOverviewbytheChiefExecutiveOfficer 10
1.6MQAManagement 13
1.7Organogram 14
ANNUAL REPORT 2007/2008
�
I am honoured and privileged to present on behalf of the
Board of the Mining Qualifications Authority, the 2007/08
Annual Report to the Minister of Labour, Mr M. Mdladlana
andMinisterofMineralsandEnergy,MsB.Sonjicaandour
sectorstakeholders.
TheMQAischargedwiththeresponsibilityoffacilitatingskills
development in theMiningandMineralsSector in termsof
theSkillsDevelopmentActof1998.Inaddition,theMQAin
theexecutionofitsmandatesupportsthebroad-basedsocio
economicempowermentcharter[MiningCharter] interms
of the Minerals and Petroleum Resources Development
Act of 2002 and the Mine Health and Safety Act of 1996.
The Human Resources Development guidelines of the
MiningCharter, inconjunctionwiththeMineralsPetroleum
Resources Development Act of 2002, make provision for
enhanced opportunities for Historically Disadvantaged
Individuals(HDIs)withintheMiningandMineralsSector.These
guidelines stipulate thatby2010,40%ofmanagement and
operationalcontrolpositionsintheSectormustbeoccupied
by people from historically disadvantaged backgrounds and
26%ownershipofassetsintheminingindustryshouldbein
thehandsoftheHDIs.Aspecialconcessionrequiresthatby
2010,10%ofallpositions in themining industryshouldbe
occupiedbywomen.
We at the MQA view compliance with good corporate
governance best practises as the cornerstone of our
success. In addition to the Governing body, which meets
quarterly, management is supported by fully functional
standing committees in each core responsibility area. To
ensure economic utilisation of scarce resources, the Audit
Committee ensures that key risk areas are appropriately
addressedtoreducethelikelihoodoffraud.Theyearunder
reviewalso saw the roll-outof the toll-free tipoffs hotline
outsourcedtoDeloitte.
The Board is also aware that the current reserves of
R212millionismorethanwhatwasanticipatedinthebudget
projections at the start of the financial year. This is due to
the increase of R56 million in revenue. The Board already
identified other strategic projects to increase spending on
discretionaryprojects inthecomingyear.TheBoardisalso
satisfied that the current reserves are sufficient to cover
futurecommitments.
The Board expressed satisfaction that internal control
measuresarestringentenoughtoensurecorrectapplication
oflimitedresources.TheMQAreceivedafourratingfromthe
DepartmentofLabour,andtheSingezireport,commissioned
bythePresidency,whichindicatedthattheorganisationwas
delivering on its mandate. The MQA has for the past few
yearsreceivedanunqualifiedauditreport fromtheAuditor
Generalanditisourintentiontomaintainanexcellentrecord
inthemanagementofourfinanceswithanotherunqualified
auditreportintheyearunderreview.
The Mining Qualifications Authority (MQA), as a Sector
EducationandTrainingAuthority(SETA)fortheMiningand
MineralsSectormustensurethatoureffortsarealignedwith
government’sprogrammeofaction.Thesustainabilityofthe
TE GaziMQAChairperson
1.1 Strategic Overview by the Chairperson
section
6
MINING QUALIFICATIONS AUTHORITY
mining industry as a major player in support of economic
growth through skills development remains one of our
greatest challenges. The journey of transforming the Mining
and Minerals Sector through skills development started eight
years ago, and the MQA is proud to acknowledge the role it
plays in redressing the imbalances brought by the previous
dispensation.
The strategic planning session of the Board with Executive
Management held on 1 & 2 November 2007 reaffirmed these
initiatives, and placed particular emphasis on bottlenecks
that could have a negative impact on the performance of the
MQA in the period under review up to the 2009/10 financial
year. The following strategic objectives were adopted at the
strategic planning session and will be used as a guideline in
determining discretionary projects and grants:
n Transformation of the Mining and Minerals Sector;n Improve health and safety;n Development of the current work force;n Development of new entrants to the labour market;n Stimulation of new enterprise development;n Transition from employed to unemployed; andn The delivery of quality training.
Due to the legacy of the mining industry, the MQA continued
to invest in the provision of Adult Basic Education and Training
[ABET] to eliminate illiteracy. The MQA Board remained
resolute in its endeavours to increase the number of
Historically Disadvantaged Individuals in the mining industry
through interventions such as the Graduate Development
Programme, and the reintroduction of the Bursary and
practical training scheme.
Challenges
The increase in the MQA staff turnover poses a major
challenge to the retention of institutional memory due to the
pending SETA landscape review in the next two years.
The current review of the National Qualifications Framework
will change the functioning of ETQAs with the establishment
of the Quality Council for Trades and Occupations. The MQA
as an accredited ETQA through SAQA will ensure continuous
improvement of its processes that will result in minimal
impact on service delivery to the sector.
In the 2008/09 financial year, the MQA will accelerate its efforts
to exceed National Skills Development Strategy targets.
Underpinning these targets are equity principles aimed at
accelerating Broad Based Black Economic Empowerment and
Employment Equity in the various economic sectors.
Conclusion
The MQA’s achievements and successes are once again
attributed to the exceptional dedication and commitment
by the MQA team, including stakeholders, board members,
MQA management and staff.
I would like to extend my sincere appreciation of the support
and the diligent manner in which the mandate of the MQA
was executed over the past year. I am proud to be associated
with a team committed in fast tracking the delivery of skills
development programmes in the Mining and Minerals Sector.
TE Gazi
MQA Chairperson
31 May 2008
Plater / Boilermaker - Metalliferous learner
ANNUAL REPORT 2007/2008
7
1.2. Board Members
Thabo GaziState
Dipalesa MokobotoState
Pessy MnisiState
Jacinto RochaState
Edson RagimanaState
State
Amon TetemeLabour
Zwelitsha TantsiLabour
Eddie MajadiboduLabour
Richard SamuelLabour
Labour
Vusi MabenaEmployer
Graham BrokenshireEmployer
Alistair KnockEmployer
Jackie MathebulaEmployer
Patricia NgqeleniEmployer
Employers
Faith LetlalaLabour
7
8
MINING QUALIFICATIONS AUTHORITY
1.3. Board and Committee Structure
Nam
eFu
ncti
onC
ompo
siti
onQ
uoru
mC
hair
pers
onSe
cret
ary
Mee
ting
1.M
QA
Boar
dAc
coun
ting
Auth
ority
pol
icy,
stra
tegi
es a
nd re
sour
ce
allo
catio
ns
5 Re
pres
enta
tives
per
stak
ehol
der g
roup
an
d C
EO, C
OO
, CFO
& C
SM2
Stak
ehol
der g
roup
s pr
esen
tC
hief
Insp
ecto
r of
Min
esEx
tern
al S
ervi
ce
Prov
ider
Qua
rter
ly
2.M
QA
Exec
utiv
e C
omm
ittee
Boar
d de
lega
ted
task
s &
man
agem
ent o
vers
ight
3 C
onve
ners
of s
take
hold
er re
pres
enta
tive
grou
ps, C
EO, C
OO
, CFO
& C
SM2
Con
vene
rs p
rese
ntC
hief
Insp
ecto
r of
Min
esEx
tern
al S
ervi
ce
Prov
ider
Mon
thly
3.Sk
ills D
evel
opm
ent
Levy
/fina
nce
Com
mitt
ee
Advi
se o
n bu
dget
, fin
anci
al
cont
rol o
f pro
ject
s & g
rant
s, le
vy
gran
t disb
urse
men
t.
2 Re
pres
enta
tives
per
stak
ehol
der g
roup
, C
EO, C
OO
, CFO
& C
SM2
Stak
ehol
der G
roup
s pr
esen
tBo
ard
Mem
ber
Exte
rnal
Ser
vice
Pr
ovid
erEv
ery
seco
nd
mon
th
4.Se
ctor
Ski
lls P
lann
ing
Com
mitt
eeAd
vise
on
deve
lopm
ent &
im
plem
enta
tion
of th
e Se
ctor
Sk
ills P
lan,
adm
inist
ratio
n of
wor
kpla
ce sk
ills p
lan
&
annu
al tr
aini
ng re
port
&
gran
ts, u
nit p
roje
cts &
gra
nts
impl
emen
tatio
n.
2 Re
pres
enta
tives
per
stak
ehol
der g
roup
&
Uni
t Man
agem
ent
2 St
akeh
olde
r Gro
ups
pres
ent
Boar
d M
embe
rEx
tern
al S
ervi
ce
Prov
ider
Ever
y se
cond
m
onth
5.Le
arne
rshi
ps
Com
mitt
eeAd
vice
on
lear
ners
hips
, ski
lls
prog
ram
mes
regi
stra
tion,
Le
arni
ng M
ater
ial d
evel
opm
ent,
Appr
entic
e ad
min
istra
tion,
D
atan
et a
dmin
istra
tion,
un
it pr
ojec
ts &
gra
nts
impl
emen
tatio
n.
2 Re
pres
enta
tives
per
stak
ehol
der g
roup
&
Uni
t Man
agem
ent
2 St
akeh
olde
r Gro
ups
pres
ent
Boar
d M
embe
rEx
tern
al S
ervi
ce
Prov
ider
Ever
y se
cond
m
onth
6.ET
QA
Com
mitt
eeAd
vise
on
qual
ity a
ssur
ance
, ac
cred
itatio
n, M
oUs w
ith
SETA
s, M
onito
ring
of le
arni
ng
prov
ision
, uni
t pro
ject
s & g
rant
s im
plem
enta
tion.
2 Re
pres
enta
tives
per
stak
ehol
der g
roup
&
Uni
t Man
agem
ent
2 St
akeh
olde
r Gro
ups
pres
ent
Boar
d M
embe
rEx
tern
al S
ervi
ce
Prov
ider
Ever
y se
cond
m
onth
7.SG
B C
omm
ittee
Advi
se o
n de
velo
pmen
t &
regi
stra
tion
of st
anda
rds &
qu
alifi
catio
ns, d
evel
opm
ent o
f le
arne
rshi
ps, s
kills
pro
gram
mes
&
ratif
icat
ion
of le
arni
ng
mat
eria
ls, li
aise
with
oth
er
SGBs
, uni
t pro
ject
s & g
rant
s im
plem
enta
tion.
4 Re
pres
enta
tives
per
stak
ehol
der g
roup
, 2
repr
esen
tativ
es fr
om S
QC
G fa
cilit
ator
s, 4
repr
esen
tativ
es fr
om P
rofe
ssio
nal
Bodi
es, 2
repr
esen
tativ
es fr
om P
rovi
ders
, 1
repr
esen
tativ
e fr
om M
anuf
actu
rers
, su
pplie
rs &
Uni
t Man
agem
ent
51%
of R
epre
sent
ativ
es
(13
Repr
esen
tativ
es
pres
ent)
Boar
d M
embe
rEx
tern
al S
ervi
ce
Prov
ider
Ever
y se
cond
m
onth
8.Au
dit C
omm
ittee
Advi
se o
n ef
fect
iven
ess o
f fin
anci
al m
anag
emen
t sys
tem
s &
cont
rols
in te
rms o
f the
PFM
A.
3 Ex
tern
al re
pres
enta
tives
, 1 re
pres
enta
tive
per s
take
hold
er g
roup
, rep
rese
ntat
ive
from
In
tern
al A
udito
rs, 1
repr
esen
tativ
e fr
om
Exte
rnal
Aud
itors
, CEO
, CO
O, C
FO &
C
SM
2 St
akeh
olde
rs fr
om
diffe
rent
stak
ehol
der
grou
ps &
1 e
xter
nal
repr
esen
tativ
e pr
esen
t
Exte
rnal
Re
pres
enta
tive
Exte
rnal
Ser
vice
Pr
ovid
erQ
uart
erly
ANNUAL REPORT 2007/2008
9
1.4. Board Meeting Attendance 2007/2008
Cha
irpe
rson
Org
anis
atio
nC
onst
itue
ncy
Mee
ting
Dat
esTo
tal
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il 07
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07
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ust
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ust
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10
MINING QUALIFICATIONS AUTHORITY
1.5. Operational Overview by the Chief Executive Officer
It gives me great pleasure to present this annual report, which
is an overview of performance for the financial year ended
31 March 2008. As the CEO, I am privileged to announce
that the MQA has once again produced an excellent set of
results. The year under review saw the appointment of the
new Chief Inspector of Mines, Mr Thabo Gazi, who is also the
Chairperson of the MQA Board in terms of the Mine Health
and Safety Act of 1996.
This annual report presents an overview of the MQA
achievements against targets set out by the National Skills
Development Strategy (NSDS) II and the Mining Charter
Support Strategy for the year 01 April 2007 to 31 March
2008. While this report outlines the activities that underpin
our performance, it also sets out the challenges we face going
forward. I am also privileged to be part of an organization that
plays a pivotal part in fulfilling a primary role and fundamental
responsibility of bringing skills development to people from
all demographics within the Mining and Minerals Sector.
Despite the legacy of the mining industry, we are committed
in collaboration with all our stakeholders to find sustainable
solutions to eliminate illiteracy, extending our services to a
greater proportion of citizens throughout SA, sustaining and
accelerating economic growth through skills development
and in the process assisting government in its development
agenda.
The year under review saw the MQA addressing its mandate
by successfully achieving and exceeding targets laid down by
the NSDS II with the completion of 41 639 employed learners
in skills programmes in mining related disciplines. Equally
impressive, a total number of 1 865 employed learners
entered learnerships and a total number of 1 783 unemployed
learners entered learnership programmes. A total number of
771 employed learners completed learnerships, in comparison
with 1 251 unemployed learners. It must be stressed that
learners starting in a learnership do not necessarily complete
in the same year.
The provision of Adult Basic Education and Training was
once again regarded as a strategic learning programme in our
efforts to reduce illiteracy in the Mining and Minerals Sector. A
total number of 12 731 learners entered ABET programmes
and 4905 successfully completed the programmes. The MQA
in collaboration with the sector stakeholders, had organized
an event to mark International Literacy Day held in Orkney,
North West on 08 September 2007 for some 1200 workers
in the sector who were the main celebrants on the day.
The MQA bursary and practical training scheme which are
used as a platform to ensure that Historically Disadvantaged
Individuals (HDIs) enter the areas identified as critical and
scarce by the MQA, enrolled 729 bursars into learning
programmes with a total number of 52 completions. In
terms of the Mining Charter Support Strategy targets 404
Small Scale Miners and 84 learners were trained in Minerals
Beneficiation skills. The MQA responsibility to increase the
number of women in the sector increased with the training
of 418 women entrepreneurs in Procurement and 30
women trained in Mining and Mineral Policy. The training
of ex-mineworkers continued with the training of 80 ex-
mineworkers, their proxies and community members in
Indigenous Jewellery programmes.
L NengovhelaChief Executive Officer
ANNUAL REPORT 2007/2008
11
The year under review also saw the MQA improving its quality
assurance policies with increased safety features built into
certificates. During a recent SAQA performance evaluation
the auditors commented on the high standard of policies and
procedures implemented and maintained by the MQA.
The MQA governing body is tasked with the role of exercising
oversight of operational activities of the MQA in compliance
with the Public Finance Management Act of 1999, and I am
proud to announce that the Board is satisfied with the control
measures implemented to mitigate the impact of potential risk
in the achievement of strategic objectives. In compliance with
good corporate governance principles, stakeholder’s capacity
building was recognized as a critical intervention to ensure that
stakeholders participate effectively in the relevant governing
structures of the MQA. An induction workshop for members
of the Board and Standing Committees took place on 01 June
2007. Various governance workshops were presented by the
Institute of Directors to capacitate members of the Board and
Standing Committees on their role and responsibility.
In January 2007 the Department of Labour (DoL) approved
the application from the MQA to implement a critical skills
project for unemployed Learners with monetary support
from the National Skills Fund (NSF). A memorandum of
Agreement was signed between the two parties detailing
the project funding model, implementation of time frames
and basic guidelines on performance and progress reporting.
This joint MQA/NSF Project will focus on training Learners in
areas identified as scarce and critical to the Sector based on
the findings of the research report on critical and scarce skills.
The project objectives are aligned to Success indicator 4.1
and 4.2 of the second National Skills Development Strategy
(NSDS II which require SETAs to assist unemployed learners
to enter into learning programmes and also gain work
experience.
The MQA flagship training intervention, the Executive
Preparation Programme, received further accolades with the
completion of over 190 candidates who were honoured at
the Alumni event held on 01 August 2007. At the same event
the MQA also took time to recognise 110 candidates who
completed the MQA Graduate Development Programme.
The Director General for the Department of Labour, Dr
Vanguard Mkosana delivered a keynote address in recognition
of the MQA’s success in delivering programmes aimed at
12
MINING QUALIFICATIONS AUTHORITY
addressing the imbalances of the previous dispensation and
transformation.
The MQA placed increased emphasis on government’s call
for minerals beneficiation with the graduation of 218 learners,
mostly women, as Diamond cutters and Polishers from Zurel
Bros., an accredited diamond and cutting institution. The
learners were honoured with the MQA accredited Diamond
Processing NQF Level 2 Certificate. In the past two years,
the MQA ensured registration of Learnerships in Jewellery
Manufacturing and Diamond Processing up to NQF Level 4.
The MQA is confident that these qualifications will strengthen
local Minerals Beneficiation initiatives, including collaborative
initiatives with the Jewellery Council of South Africa, the
Diamond Board of South Africa, the State Diamond Trader
and Diamond and Precious Metal Regulator.
During the period under review, the MQA produced a
corporate video which was launched at the 2007 MQA
Annual Consultative Conference in October. The video will
ensure that better awareness improves the media profile of
the MQA within the mining industry, its stakeholders and the
general public as a true agent of transformation.
Challenges
The improvement of health and safety issues in the mining
industry needs to be promoted to assist in reducing mine
accidents. The MQA is currently reviewing its programmes to
facilitate an increased health and safety agenda for the Mining
and Minerals Sector.
The changes to the SETA landscape have already had a
profound impact on the MQA’s efforts to retain suitably
qualified and experienced staff, and ultimately institutional
memory. In the ensuing financial year, the MQA will compile
a position paper aimed at reaffirming its existence beyond
2010.
The lower intake of ABET candidates/learners still remains a
major concern for the organization and the industry. Various
interventions have been put in place to increase the intake of
learners in ABET programmes offered by the MQA.
The MQA’s five year cash flow strategy will see reserves
depleting over a period of time which will have an impact
on projects and grants to the industry. Despite the shrinking
of certain sectors in the mining industry, the MQA has
maintained a steady increase in income due to new entrants
in the industry.
Acknowledgements
I would like to extend my acknowledgement and express
my appreciation to the members of the board, standing
committees, stakeholders, our levy-paying companies and
management and staff, for their exceptional contribution and
commitment to team work aimed at meeting national and
sectoral targets. I can assure you that with your continued
support the MQA will grow from strength to strength.
L Nengovhela
Chief Executive Officer
31 May 2008
Executive Management
Managers
Specialists
J MohlalaSkills Development
S MafungaABET
M MachetheSMME
J De LeeuwStandards Generation
B MaktgotloStandards Generation
P SmitLearnerships
T NkunaSkills Levies
O NetsiandaOffice Manager
M GovenderAssistant Accountant
S MiyamboHuman Resources
M NyovaneQuality Assurance
E MainganyeCommunications
B MathebulaProgramme Evaluation
L MpurwanaExecutive Assistant
R KgweleQuality Assurance
K RaphungaProcurement
S XabaLearnerships
V NaiduManagementInformation Systems
R MonareETQA
J MoodleyStandards Generation
X Njikelana Learnerships
L ManyaduStrategic Projects
M PlasketSkills Development
M MdingiAccountant
1.6. MQA Management
Livhu NengovhelaChief Executive Officer
Corrie SmitChief Operating Officer
Skills PlanningQuality AssuranceLearnershipsStandards GenerationStrategic Projects
Yunus OmarChief Financial Officer
Financial AdministrationProcurementLevy Grant AdministrationRisk and Fraud AdministrationManagement Information Systems
Darion BarclayCorporate Services Manager
Human ResourcesCommunicationsOffice and FacilitiesCorporate GovernanceStakeholder Capacity Building
13
14
MINING QUALIFICATIONS AUTHORITY
2section
1.7. Organogram
Vaca
ntC
omm
. Offi
cer
S M
iyam
boH
R Pr
actit
ione
rAM
14 Ja
n 08
P D
ladl
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n Ad
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AM1
Feb
05
L C
ough
lan
Book
keep
erW
F1
Apr 0
0
N P
alm
erPA
to C
OO
CF
15 M
ar 0
6
C S
nare
R&C
Adm
inC
F1
Mar
04
T M
alow
aAc
cr. A
dmin
AF1
Jun
04
Vaca
ntH
R Ad
min
istra
tor
Perm
anen
t St
aff a
nd In
tern
sM
FA
CW
IVa
cant
Tota
lPe
rman
ent
2029
364
43
754
Inte
rns
08
00
00
210
TO
TAL
2037
364
43
964
D B
arcl
ayC
S M
anag
erC
M1
Feb
05
L M
anya
duPr
ojec
ts M
anag
erAF
1 Ju
ne 0
6
J Moo
dley
SGB
Man
ager
IF15
May
03
M P
lask
etSD
Man
ager
WF
6 Au
g 07
M M
ache
the
SMM
E Sp
ecia
list
AM15
Aug
03
Vaca
ntET
QA
Man
ager
Vaca
ntLe
arne
rshi
psM
anag
er
I Maz
ibuk
oC
opy
Room
/D
river
AM 1
Jul 0
2
R M
atum
baC
redi
tors
Cle
rkAM
3 Ap
r 06
T N
kuna
SDL
Offi
cer
AF1
Feb
05
M G
oven
dor
Ass A
ccou
ntan
tIM
5 M
ay 0
3
C S
mit
CO
OW
M1
May
02
M M
ding
iAc
coun
tant
AM1
Feb
05
Y O
mar
CFO IM
9 M
ay 0
5
R C
hesa
neFi
n Ad
min
/PA
AF25
Sep
05
M N
yova
neQ
A O
ffice
rAM
1 M
ar 0
4
S M
afun
gaAB
ET S
peci
alist
AM3
Mar
04
R K
gwel
eQ
A Sp
ecia
list
AF1
Oct
07
B M
athe
bula
PE S
peci
alist
AF3
May
04
J Moh
lala
SD S
peci
alist
AM3
Jul 0
6
B M
akgo
tlo
SGB
Offi
cer
AF1
Oct
03
J de
Leeu
wSG
Offi
cer
WF
1 Au
g 05
Vaca
ntL/
ship
s Spe
cialis
tS
Xab
aL/
ship
s Offi
cer
AF8
Dec
04
Vaca
ntPr
ojec
ts A
dmin
L M
adi
SD A
dmin
AF1
Apr 0
2
E M
agum
aD
atab
ase
Adm
inAM
1 Fe
b 08
K S
ihla
ngu
ABET
Adm
inAF
1 Fe
b 08
I Mel
ato
SMM
E Ad
min
AF1
Feb
05
B R
aser
oka
SGB
Adm
inAM
1 Ju
n 06
S T
imak
we
Dat
abas
e Ad
min
AF1
Jun
05
S Te
ffoA&
L Ad
min
AM6
Nov
06
A N
elso
nA&
L Ad
min
WF
1 Au
g 01
M P
auls
enA&
L Ad
min
CM
1 Au
g 01
A L
ehob
oC
S Ad
min
AF15
Nov
05
M M
atjil
aA&
L Ad
min
AM8
Oct
07
S N
tshi
ngila
Rece
ptio
nist
AF1
Nov
07O
Net
sian
daO
ffice
Man
ager
AF1
Oct
04
V N
aido
oM
IS S
pecia
list
IM1
Nov
05 K
Rap
hung
a Pr
oc. S
pecia
list
AF3
Mar
08
V D
uba
Cat
erin
gAF
1 Ju
l 02
R M
aliz
aC
ater
ing
AF1
Jun
05
P M
hlam
biC
ater
ing
AF1
Jul 0
2
L M
purw
ana
Exec
Ass
istan
tAF
1 Ju
ne 0
5
Vaca
ntPA
to C
EO
L N
engo
vhel
aC
EO AM3
May
05
INT
ERN
S
Vaca
ntET
QA
R M
abul
aSS
PAF
Z D
ibak
oane
Proj
ects
AF
K M
oroa
neSG
BAF
C R
amal
aLe
arne
rshi
psAF
B M
okit
iC
omm
sAF
K D
iale
HR
AF
H K
gare
Proc
urem
ent
AF
R M
laud
ziFi
nanc
eAF
Vaca
ntIT
NSF
Proj
ect
2section
Section 2: 2007/2008 National Skills Development Strategy
15
16
MINING QUALIFICATIONS AUTHORITYN
AT
ION
AL
SKIL
LS D
EVEL
OPM
ENT
ST
RA
TEG
Y 2
005-
2010
– M
QA
REP
OR
T F
OR
TH
E PE
RIO
D 2
007/
2008
No
Nat
iona
l Ski
lls
Dev
elop
men
t St
rate
gy 2
005
– 20
10 o
bjec
tive
s
Nat
iona
l Ski
lls D
evel
opm
ent
Stra
tegy
200
5 - 2
010
Succ
ess
Indi
cato
rs, N
atio
nal T
arge
ts
MQ
A P
lan
for
2005
– 2
010
Five
Yea
r Ta
rget
s
MQ
A P
lan
for
2007
/200
8
Ann
ual T
arge
ts
MQ
A a
chie
vem
ents
for
2007
/200
8Sc
orec
ard
1.Pr
iori
tisin
g an
d co
mm
unic
atin
g cr
itica
l ski
lls fo
r su
stai
nabl
e gr
owth
, de
velo
pmen
t an
d eq
uity
.
Indi
cato
r 1.
1Sk
ills d
evel
opm
ent s
uppo
rts
natio
nal a
nd S
ecto
ral g
row
th,
deve
lopm
ent a
nd e
quity
pr
iorit
ies.
Targ
et is
the
sam
e fo
r eac
h ye
ar
from
200
5 to
201
0 as
des
crib
ed
unde
r Ann
ual T
arge
t.
The
SSP
or A
nnua
l Upd
ate
is sig
ned
off b
y th
e:
a) M
QA
and
Dep
artm
ent o
f La
bour
who
agr
eed
grow
th,
deve
lopm
ent a
nd e
quity
stra
tegy
dr
iver
s.
b) D
epar
tmen
t of L
abou
r Ex
ecut
ive
Man
ager
resp
onsib
le
for q
ualit
y as
sura
nce
of S
SP.
The
SSP
or A
nnua
l upd
ate
subm
itted
on
time
as p
er
Dep
artm
ent o
f Lab
our
Gui
delin
es.
Budg
eted
exp
endi
ture
:Pa
rt o
f adm
inist
ratio
n bu
dget
The
2005
-201
0 SS
P U
pdat
e w
as
signe
d of
by
the
Dep
artm
ent
of L
abou
r Exe
cutiv
e M
anag
er
resp
onsib
le fo
r qua
lity
assu
ranc
e of
SSP
s.
It re
flect
s MQ
A/D
epar
tmen
t of
Lab
our a
gree
d gr
owth
, de
velo
pmen
t and
equ
ity st
rate
gy
driv
ers.
The
Annu
al u
pdat
e w
as
subm
itted
on
time
as p
er
Dep
artm
ent o
f Lab
our
Gui
delin
es.
Actu
al e
xpen
ditu
re:
Part
of a
dmin
istra
tion
budg
et
Targ
et a
chie
ved.
Targ
et a
chie
ved.
Targ
et a
chie
ved.
Indi
cato
r 1.
2In
form
atio
n on
crit
ical
skills
w
idel
y av
aila
ble
to le
arne
rs.
Impa
ct o
f inf
orm
atio
n di
ssem
inat
ion
rese
arch
ed,
mea
sure
d an
d co
mm
unic
ated
in
term
s of r
ising
ent
ry, c
ompl
etio
n an
d pl
acem
ent o
f lea
rner
s.
Targ
et is
the
sam
e fo
r eac
h ye
ar
from
200
5 to
201
0 as
des
crib
ed
unde
r Ann
ual T
arge
t.
Annu
al g
uide
on
criti
cal s
kills
ne
eds f
or th
e Se
ctor
dev
elop
ed
and
avai
labl
e to
lear
ners
.
150
SDFs
or S
ecto
r Spe
cial
ists
to b
e tr
aine
d in
the
Sect
or fo
r th
e ye
ar.
Budg
eted
exp
endi
ture
:Sc
arce
and
crit
ical
skills
gui
de:
Part
of a
dmin
istra
tion
budg
etSD
F tr
aini
ng: R
200
000
The
MQ
A an
nual
gui
de o
n cr
itica
l sk
ills n
eeds
was
dev
elop
ed
for t
he S
ecto
r and
ava
ilabl
e to
le
arne
rs.
135
SDFs
or S
ecto
r Spe
cial
ist
wer
e tr
aine
d.
Actu
al e
xpen
ditu
re:
Scar
ce a
nd c
ritic
al sk
ills g
uide
: Pa
rt o
f adm
inist
ratio
n bu
dget
SDF
trai
ning
: R 9
8 43
7.48
Targ
et a
chie
ved.
Targ
et n
ot a
chie
ved.
Tra
inin
g of
100
SD
Fs/S
ecto
r Spe
cial
ists
taki
ng p
lace
in A
pril
2008
.
ANNUAL REPORT 2007/2008
17
No
Nat
iona
l Ski
lls
Dev
elop
men
t St
rate
gy 2
005
– 20
10 o
bjec
tive
s
Nat
iona
l Ski
lls D
evel
opm
ent
Stra
tegy
200
5 - 2
010
Succ
ess
Indi
cato
rs, N
atio
nal T
arge
ts
MQ
A P
lan
for
2005
– 2
010
Five
Yea
r Ta
rget
s
MQ
A P
lan
for
2007
/200
8
Ann
ual T
arge
ts
MQ
A a
chie
vem
ents
for
2007
/200
8Sc
orec
ard
2.Pr
omot
ing
and
acce
lera
ting
qual
ity
trai
ning
for
all i
n th
e w
orkp
lace
Indi
cato
r 2.
1By
Mar
ch 2
010
at le
ast 8
0% o
f la
rge
firm
s’ an
d at
leas
t 60%
of
med
ium
firm
s’ em
ploy
men
t eq
uity
targ
ets a
re su
ppor
ted
by
skills
dev
elop
men
t.
Impa
ct o
n ov
eral
l equ
ity p
rofil
e as
sess
ed.
Targ
et is
set f
or e
ach
year
from
20
05 to
201
0 as
des
crib
ed u
nder
An
nual
Tar
get.
The
targ
et fo
r the
larg
e fir
ms i
s 13
0 fir
ms.
The
targ
et fo
r med
ium
firm
s is
70 fi
rms.
Budg
eted
exp
endi
ture
:Pa
rt o
f adm
inist
ratio
n bu
dget
231
larg
e fir
m re
ceiv
ed
Wor
kpla
ce S
kills
Pla
n/at
r Gra
nts.
110
med
ium
firm
s rec
eive
d W
SP/A
TR G
rant
s
Actu
al e
xpen
ditu
re:
Part
of a
dmin
istra
tion
budg
et
Targ
et e
xcee
ded.
A
larg
er n
umbe
r of l
arge
co
mpa
nies
subm
itted
WSP
/ATR
.
Targ
et e
xcee
ded.
A
larg
er n
umbe
r of m
ediu
m
com
pani
es su
bmitt
ed W
SP/A
TR
Indi
cato
r 2.
2By
Mar
ch 2
010
skills
de
velo
pmen
t in
at le
ast 4
0%
of sm
all l
evy
payi
ng fi
rms
supp
orte
d, a
nd th
e im
pact
of t
he
supp
ort m
easu
red.
Targ
et is
set f
or e
ach
year
from
20
05 to
201
0 as
des
crib
ed u
nder
An
nual
Tar
get.
The
targ
et fo
r the
diff
eren
t nu
mbe
r of s
mal
l firm
s is 3
20
firm
s.
Budg
eted
exp
endi
ture
:Pa
rt o
f adm
inist
ratio
n bu
dget
200
smal
l firm
s rec
eive
d W
SP/
ATR
Gra
nts.
Actu
al e
xpen
ditu
re:
Part
of a
dmin
istra
tion
budg
et
Targ
et n
ot a
chie
ved.
Incr
easin
g th
e pa
rtic
ipat
ion
of sm
all
com
pani
es re
mai
ns a
cha
lleng
e.
A fo
cuse
d m
arke
ting
cam
paig
n is
plan
ned
for 2
008-
2009
Indi
cato
r 2.
4By
Mar
ch 2
010,
at l
east
500
en
terp
rises
ach
ieve
a n
atio
nal
stan
dard
of g
ood
prac
tice
in sk
ills
deve
lopm
ent a
ppro
ved
by th
e M
inist
er o
f Lab
our.
The
Nat
iona
l Ski
lls A
utho
rity
has
advi
sed
that
this
succ
ess i
ndic
ator
is
disc
ontin
ued
for 2
005-
2010
.
Not
app
licab
le fo
r 200
7/20
08N
/AN
/A
Indi
cato
r 2.
5An
nual
ly in
crea
sing
num
ber o
f sm
all B
EE fi
rms a
nd B
EE c
o-op
erat
ives
supp
orte
d by
skills
de
velo
pmen
t. Pr
ogre
ss m
easu
red
thro
ugh
an a
nnua
l sur
vey
of B
EE
firm
s and
BEE
co-
oper
ativ
es
with
in th
e Se
ctor
from
the
seco
nd y
ear o
nwar
ds. I
mpa
ct o
f su
ppor
t mea
sure
d
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2006
– 2
010
will
be
esta
blish
ed a
fter c
ompl
etio
n of
ba
selin
e su
rvey
.
The
targ
et fo
r the
per
iod
2007
/200
8 is
40 sm
all B
EE fi
rms.
The
targ
et fo
r the
per
iod
2007
/200
8 is
0 BE
E co
-op
erat
ives
.
12 sm
all B
EE fi
rms s
uppo
rted
.Ta
rget
not
ach
ieve
d.Re
sear
ch p
roje
ct st
arte
d to
id
entif
y an
d cr
eate
org
aniz
atio
ns
to o
ffer t
hem
skills
dev
elop
men
t su
ppor
t.
18
MINING QUALIFICATIONS AUTHORITYN
oN
atio
nal S
kills
D
evel
opm
ent
Stra
tegy
200
5 –
2010
obj
ecti
ves
Nat
iona
l Ski
lls D
evel
opm
ent
Stra
tegy
200
5 - 2
010
Succ
ess
Indi
cato
rs, N
atio
nal T
arge
ts
MQ
A P
lan
for
2005
– 2
010
Five
Yea
r Ta
rget
s
MQ
A P
lan
for
2007
/200
8
Ann
ual T
arge
ts
MQ
A a
chie
vem
ents
for
2007
/200
8Sc
orec
ard
Indi
cato
r 2.
7By
Mar
ch 2
010
at le
ast 7
00 0
00
wor
kers
hav
e ac
hiev
ed a
t lea
st
ABET
Lev
el 1
to 4
.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2005
to 2
010
is 43
000
le
arne
rs to
hav
e ac
hiev
ed A
BET
1 to
4.
The
targ
et o
f lea
rner
s to
have
en
tere
d an
d ac
hiev
ed A
BET
leve
ls ar
e:
Leve
l 4: 6
000
Leve
l 3: 1
0 00
0Le
vel 2
: 12
000
Leve
l 1: 1
5 00
0
Tota
l tar
get f
or th
e Se
ctor
for
the
perio
d 20
07 -2
008
is 8
700
lear
ners
to e
nter
and
ach
ieve
AB
ET le
vels
1 to
4.
The
targ
et o
f lea
rner
s to
have
en
tere
d an
d ac
hiev
ed A
BET
leve
ls ar
e:
Leve
l 4: 1
200
Leve
l 3: 2
000
Leve
l 2: 2
500
Leve
l 1: 3
000
Budg
eted
exp
endi
ture
:R
20.0
00.0
00
A to
tal o
f 12
731
lear
ners
hav
e en
tere
d AB
ET p
rogr
amm
es.
Brea
kdow
n pe
r lev
el:
Leve
l 4: 1
868
Leve
l 3: 3
463
Leve
l 2: 3
400
Leve
l 1: 4
000
A to
tal o
f 4 9
05 le
arne
rs h
ave
com
plet
ed A
BET
prog
ram
mes
.Br
eakd
own
per l
evel
:Le
vel 4
: 7
38
Leve
l 3: 1
046
Leve
l 2: 1
248
Leve
l 1:
1 87
3
Actu
al e
xpen
ditu
re:
R10.
000.
860
Targ
et fo
r re
gist
rati
on
exce
eded
. Giv
en th
e ne
ed in
the
sect
or fo
r ABE
T, M
QA
allo
cate
d a
budg
et g
reat
er th
an th
at
requ
ired
by th
e ta
rget
, allo
win
g fo
r a la
rger
num
ber o
f ABE
T gr
ants
.
Targ
ets
for
com
plet
ions
not
ac
hiev
ed. T
he d
rop
out r
ate
was
muc
h la
rger
than
exp
ecte
d.
Reas
ons f
or d
ropo
ut a
re b
eing
an
alys
ed.
Indi
cato
r 2.
8By
Mar
ch 2
010
at le
ast 1
25
000
wor
kers
ass
isted
to e
nter
an
d at
leas
t 50%
succ
essf
ully
co
mpl
ete
prog
ram
mes
, in
clud
ing
Lear
ners
hips
and
ap
pren
tices
hips
, lea
ding
to b
asic
en
try,
inte
rmed
iate
and
hig
h le
vel
scar
ce sk
ills. I
mpa
ct o
f ass
istan
ce
mea
sure
d.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2005
to 2
010
is 55
90
Lear
ners
.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2007
-200
8 is
1 11
8 le
arne
rs to
hav
e en
tere
d le
arni
ng
prog
ram
mes
, inc
ludi
ng:
Lear
ners
hips
820
Skills
Pro
gram
mes
248
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2007
-200
8 is
559
lear
ners
to
hav
e co
mpl
eted
lear
ning
pr
ogra
mm
es, i
nclu
ding
:Le
arne
rshi
ps 4
35Sk
ills P
rogr
amm
es 1
24
Budg
eted
exp
endi
ture
:Le
arne
rshi
ps R
34.6
36.0
00
1 86
5 le
arne
rs h
ave
ente
red
into
le
arne
rshi
ps.
31 9
83 le
arne
rs h
ave
ente
red
into
skills
pro
gram
mes
.53
lear
ners
ent
ered
Sec
tion
13
and
28 a
ppre
ntic
eshi
ps77
1 le
arne
rs h
ave
com
plet
ed
lear
ners
hips
31 1
17 le
arne
rs h
ave
com
plet
ed
skills
pro
gram
mes
162
lear
ners
hav
e co
mpl
eted
Se
ctio
n 13
and
28
appr
entic
eshi
ps
Actu
al e
xpen
ditu
re:
Lear
ners
hips
: R30
.017
.580
Targ
et e
xcee
ded.
Allo
catio
ns fo
r lea
rner
ship
s w
ere
mad
e ab
ove
the
targ
et
as th
e bu
dget
was
ava
ilabl
e.
Furt
herm
ore,
em
ploy
ers h
ave
regi
ster
ed le
arne
rs b
eyon
d w
hat
they
wer
e al
loca
ted.
Skills
pro
gram
mes
are
driv
en
larg
ely
by re
gula
tions
and
hen
ce
the
num
bers
are
hig
h.
ANNUAL REPORT 2007/2008
19
No
Nat
iona
l Ski
lls
Dev
elop
men
t St
rate
gy 2
005
– 20
10 o
bjec
tive
s
Nat
iona
l Ski
lls D
evel
opm
ent
Stra
tegy
200
5 - 2
010
Succ
ess
Indi
cato
rs, N
atio
nal T
arge
ts
MQ
A P
lan
for
2005
– 2
010
Five
Yea
r Ta
rget
s
MQ
A P
lan
for
2007
/200
8
Ann
ual T
arge
ts
MQ
A a
chie
vem
ents
for
2007
/200
8Sc
orec
ard
3.Pr
omot
ing
empl
oyab
ility
an
d su
stai
nabl
e liv
elih
oods
thr
ough
sk
ills d
evel
opm
ent
Indi
cato
r 3.
2By
Mar
ch 2
010,
at l
east
200
0 no
n-le
vy p
ayin
g en
terp
rises
, N
GO
s, C
BOs,
and
com
mun
ity-
base
d co
-ope
rativ
es su
ppor
ted
by sk
ills d
evel
opm
ent.
Impa
ct
of su
ppor
t on
sust
aina
bilit
y m
easu
red
with
a ta
rget
ed 7
5%
succ
ess r
ate.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2005
to 2
010
is 20
en
terp
rises
.
Targ
et fo
r the
Sec
tor f
or
the
perio
d 20
07-2
008
is 2
ente
rpris
es.
29 e
nter
prise
s wer
e su
ppor
ted.
Targ
et e
xcee
ded.
MQ
A in
crea
sed
the
supp
ort
prov
ided
thro
ugh
a ra
nge
of
initi
ativ
es.
4.As
sistin
g de
signa
ted
grou
ps, i
nclu
ding
ne
w e
ntra
nts t
o pa
rtic
ipat
e in
ac
cred
ited
wor
k,
inte
grat
ed le
arni
ng
and
wor
k ba
sed
prog
ram
mes
to
acqu
ire
criti
cal s
kills
to
ent
er t
he la
bour
m
arke
t an
d se
lf em
ploy
men
t
Indi
cato
r 4.
1By
Mar
ch 2
010
at le
ast 1
25
000
unem
ploy
ed p
eopl
e as
siste
d to
ent
er a
nd a
t le
ast 5
0% su
cces
sful
ly
com
plet
e pr
ogra
mm
es,
incl
udin
g Le
arne
rshi
ps a
nd
appr
entic
eshi
ps, l
eadi
ng to
bas
ic
entr
y, in
term
edia
te a
nd h
igh
leve
l sc
arce
skills
. Im
pact
of a
ssist
ance
m
easu
red.
Targ
et
for
the
Sect
or
for
the
perio
d 20
05 t
o 20
10 i
s 5
590
Lear
ners
plu
s 1
218
burs
ars
to
ente
r le
arni
ng p
rogr
amm
es a
nd
2 79
5 le
arne
rs to
hav
e co
mpl
eted
le
arni
ng p
rogr
amm
es.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2007
-200
8 is
1118
le
arne
rs p
lus 2
25 b
ursa
rs.
Budg
eted
exp
endi
ture
:Bu
rsar
ies R
11.
400.
00Le
arne
rshi
ps R
34. 6
36. 0
00
1 78
3 le
arne
rs h
ave
ente
red
lear
ners
hips
and
1 2
51
com
plet
ed le
arne
rshi
ps.
729
burs
ars h
ave
ente
red
lear
ning
pro
gram
mes
and
52
com
plet
ed.
814
lear
ners
ent
ered
skills
pr
ogra
mm
es a
nd 1
0 52
2 co
mpl
eted
skills
pro
gram
mes
.
Actu
al e
xpen
ditu
re:
Burs
arie
s R 1
1.36
8.78
4Le
arne
rshi
ps R
28.8
40.4
20
Targ
et e
xcee
ded.
Allo
catio
ns fo
r lea
rner
ship
s w
ere
mad
e ab
ove
the
targ
et
as th
e bu
dget
was
ava
ilabl
e.
Furt
herm
ore,
em
ploy
ers h
ave
regi
ster
ed le
arne
rs b
eyon
d w
hat
they
wer
e al
loca
ted.
Burs
ary
targ
et e
xcee
ded.
Mor
e bu
dget
was
allo
cate
d fo
r thi
s pr
ojec
t.
Skills
pro
gram
mes
are
driv
en
larg
ely
by re
gula
tions
and
hen
ce
the
num
bers
are
hig
h.
Indi
cato
r 4.
2 10
0% o
f lea
rner
s in
criti
cal
skills
pro
gram
mes
cov
ered
by
Sect
or a
gree
men
ts fr
om F
ET
and
HET
inst
itutio
ns a
ssist
ed to
ga
in w
ork
expe
rienc
e lo
cally
or
abro
ad, o
f who
m a
t lea
st 7
0%
find
plac
emen
t in
empl
oym
ent o
r se
lf-em
ploy
men
t
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2005
to 2
010
is 59
0 pr
actic
al tr
aini
ng le
arne
rs,
incl
udin
g G
DP
lear
ners
.
177
lear
ners
to b
ecom
e se
lf-em
ploy
ed o
r em
ploy
ed.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2007
-200
8 is
98 le
arne
rs
to g
ain
wor
k ex
perie
nce.
Budg
eted
exp
endi
ture
:G
DP
R1.3
86.0
00Pr
actic
al tr
aini
ng R
12.6
00.0
00
338
lear
ners
hav
e be
en a
ssist
ed
with
wor
kpla
ce e
xper
ienc
e.
Actu
al e
xpen
ditu
re:
GD
P R3
29.0
69Pr
actic
al tr
aini
ng R
12.8
26.8
00
Targ
et e
xcee
ded.
Targ
et e
xcee
ded
beca
use
the
MQ
A in
crea
sed
the
budg
et
allo
cate
d fo
r thi
s pro
ject
.
20
MINING QUALIFICATIONS AUTHORITY
3Section 3: Mining Charter Support Strategy
section
No
Nat
iona
l Ski
lls
Dev
elop
men
t St
rate
gy 2
005
– 20
10 o
bjec
tive
s
Nat
iona
l Ski
lls D
evel
opm
ent
Stra
tegy
200
5 - 2
010
Succ
ess
Indi
cato
rs, N
atio
nal T
arge
ts
MQ
A P
lan
for
2005
– 2
010
Five
Yea
r Ta
rget
s
MQ
A P
lan
for
2007
/200
8
Ann
ual T
arge
ts
MQ
A a
chie
vem
ents
for
2007
/200
8Sc
orec
ard
Assis
ting
desig
nate
d gr
oups
, inc
ludi
ng
new
ent
rant
s to
part
icip
ate
in
accr
edite
d w
ork,
in
tegr
ated
lear
ning
an
d w
ork
base
d pr
ogra
mm
es t
o ac
quir
e cr
itica
l ski
lls
to e
nter
the
labo
ur
mar
ket
and
self
empl
oym
ent
Indi
cato
r 4.
3By
mar
ch 2
010,
at
leas
t 10
,000
yo
ung
peop
le
trai
ned
and
men
tore
d to
fo
rm
sust
aina
ble
new
ven
ture
s an
d at
lea
st 7
0%
of
new
ve
ntur
es
in
oper
atio
n 12
mon
ths
afte
r co
mpl
etio
n of
pr
ogra
mm
e
Targ
et
for
the
Sect
or
for
the
perio
d 20
05
to
2010
is
445
youn
g pe
rson
s to
be
trai
ned
and
men
tore
d to
form
new
ven
ture
s.Ta
rget
is
that
133
(30
%)
new
ve
ntur
es
are
sust
aina
ble
and
in
oper
atio
n 12
m
onth
s af
ter
com
plet
ion
of th
e le
arni
ng.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2007
-200
8 is
89 y
oung
pe
rson
s tra
ined
and
men
tore
d in
ne
w v
entu
res.
Targ
et f
or t
he S
ecto
r is
27 n
ew
vent
ures
ar
e su
stai
nabl
e an
d in
op
erat
ion
12
mon
ths
afte
r co
mpl
etio
n of
lear
ning
.
Budg
eted
exp
endi
ture
:R3
.728
.000
122
youn
g pe
ople
ha
ve
been
tr
aine
d.
27 n
ew v
entu
res a
re in
ope
ratio
n 12
mon
ths
afte
r co
mpl
etio
n of
th
e pr
ogra
mm
e.
Actu
al e
xpen
ditu
re:
R2.9
39.3
65
Targ
et e
xcee
ded.
Targ
et e
xcee
ded
beca
use
MQ
A al
loca
ted
mor
e bu
dget
for
thi
s pr
ojec
t to
trai
n m
ore
lear
ners
.Ta
rget
ach
ieve
d.
5.Im
prov
ing
the
qual
ity
and
rele
vanc
e of
pr
ovisi
on
Indi
cato
r 5.
1By
Mar
ch 2
010
each
MQ
A re
cogn
ises a
nd su
ppor
ts a
t le
ast f
ive
Inst
itute
s of S
ecto
ral
or O
ccup
atio
nal E
xcel
lenc
e (IS
OE)
with
in p
ublic
& p
rivat
e in
stitu
tions
and
thro
ugh
Publ
ic
Priv
ate
Part
ners
hips
(PPP
s)
whe
re a
ppro
pria
te, s
prea
d as
w
idel
y as
pos
sible
geo
grap
hica
lly
for t
he d
evel
opm
ent o
f peo
ple
to a
ttai
n id
entif
ied
criti
cal
occu
patio
nal s
kills
, who
se
exce
llenc
e is
mea
sure
d in
the
num
ber o
f lea
rner
s suc
cess
fully
pl
aced
in th
e Se
ctor
and
em
ploy
er sa
tisfa
ctio
n ra
tings
of
thei
r tra
inin
g.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2005
to 2
010
is 5
inst
itute
s.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2007
-200
8 is
5 in
stitu
tes.
Budg
eted
exp
endi
ture
:R1
.200
.000
0 In
stitu
tes o
f Sec
tora
l or
Occ
upat
iona
l Exc
elle
nce
(ISO
E)
supp
orte
d.
Actu
al e
xpen
ditu
re:
R 0
Targ
et n
ot a
chie
ved.
Ins
titut
es
have
bee
n id
entif
eid
and
are
bein
g ev
alua
ted
for r
ecog
nitio
n ea
rly in
200
8-20
09, a
lthou
gh
facu
lties
and
inst
itutio
ns h
ave
rece
ived
supp
ort f
rom
the
MQ
A.
Indi
cato
r 5.
2 By
Mar
ch 2
010,
eac
h pr
ovin
ce
has a
t lea
st tw
o pr
ovid
er
inst
itutio
ns a
ccre
dite
d to
man
age
the
deliv
ery
of th
e ne
w v
entu
re
crea
tion
qual
ifica
tion.
70%
of
new
ven
ture
s stil
l ope
ratin
g af
ter 1
2 m
onth
s will
be u
sed
as
a m
easu
re o
f the
inst
itutio
ns’
succ
ess.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2005
to 2
010
is 5
inst
itute
s.
Targ
et fo
r the
Sec
tor f
or th
e pe
riod
2007
-200
8 is
5 in
stitu
tes.
5 Pr
ovid
ers a
re m
anag
ing
the
New
Ven
ture
Cre
atio
n.Ta
rget
ach
ieve
d.
3Section 3: Mining Charter Support Strategy
section21
22
MINING QUALIFICATIONS AUTHORITYM
QA
ST
RA
TEG
Y T
O S
UPP
OR
T T
HE
MIN
ING
CH
AR
TER
: A
PRIL
200
4 –
MA
RC
H 2
010
AB
RID
GED
VER
SIO
N A
DO
PTED
BY
MQ
A O
N 2
9 A
PRIL
200
4PR
OG
RES
S R
EPO
RT
FO
R T
HE
PER
IOD
200
7/20
08
Cha
rter
Obj
ecti
ves
The
MQ
A P
lans
To:
Pote
ntia
l Cha
lleng
es:
MQ
A S
ucce
ss In
dica
tors
:Pr
ogre
ss R
epor
t fo
r th
e Pe
riod
20
07/2
008:
1.
Skill
s A
udit
and
Sec
tor
Skill
s St
rate
gy
“Sta
keho
lder
s sh
ould
form
ulat
e a
com
preh
ensiv
e sk
ills
deve
lopm
ent s
trat
egy
to
incl
ude
a sk
ills a
udit.
”
Revi
ew th
e Se
ctor
Ski
lls P
lan
(SSP
) by
Oct
ober
200
4 an
d pr
oduc
e a
new
SSP
for
2005
- 20
09.
Revi
ew th
e cr
iteria
for W
orkp
lace
Ski
lls
Plan
s (W
SPs)
and
Ann
ual T
rain
ing
Repo
rts
(ATR
s) a
nnua
lly.
Mai
ntai
n an
app
ropr
iate
dat
abas
e to
fa
cilit
ate
repo
rtin
g by
com
pani
es o
n th
e im
plem
enta
tion
of th
e N
atio
nal S
kills
D
evel
opm
ent S
trat
egy.
Pote
ntia
l con
flict
bet
wee
n st
akeh
olde
rs in
ad
optin
g Se
ctor
al sk
ills p
riorit
ies.
The
Boar
d an
d D
epar
tmen
t of L
abou
r to
app
rove
a S
ecto
r Ski
lls P
lan
for 2
005
– 20
10 U
pdat
e.
Skills
aud
it gu
idel
ines
and
tool
kit t
o be
de
velo
ped.
The
Boar
d ap
prov
ed th
e 20
05-2
010
Min
ing
and
Min
eral
s Sec
tor S
kills
Pla
n U
pdat
e w
hich
was
subm
itted
to th
e D
epar
tmen
t of L
abou
r (D
OL)
on
31
Augu
st 2
007
and
appr
oved
by
DO
L.
Scar
ce a
nd c
ritic
al sk
ills in
the
Sect
or
wer
e up
date
d ba
sed
on th
e an
alys
is of
W
orkp
lace
Ski
lls P
lan
and
ATRs
subm
itted
fo
r the
200
7-20
08 p
erio
d.
An a
ppro
ach
to sk
ills a
udit
has b
een
adop
ted
by th
e M
QA
and
the
plan
will
be ro
lled
out i
n th
e 20
08/2
009
finan
cial
ye
ar. T
his i
nclu
des t
he d
evel
opm
ent o
f gu
idel
ines
and
a to
olki
t.
2.
Car
eer
Path
s
“C
ompa
nies
shou
ld
impl
emen
t car
eer
path
s for
thei
r HD
SA
empl
oyee
s inc
ludi
ng sk
ills
deve
lopm
ent p
lans
.”
Popu
laris
e th
e us
e of
the
MQ
A
Qua
lific
atio
ns F
ram
ewor
k an
d pu
blish
ca
se st
udie
s as p
art o
f the
Com
mun
icat
ion
Stra
tegy
.
Ensu
re Q
ualif
icat
ions
rem
ain
rele
vant
to
supp
ort m
obilit
y of
em
ploy
ees.
Cla
rity
on u
se o
f the
Fra
mew
ork
by
Indu
stry
and
the
role
of t
he M
QA
is ne
eded
.
Repo
rts o
f act
iviti
es to
pro
mot
e th
e Fr
amew
ork
are
acce
pted
by
the
SGB.
The
Fram
ewor
k ha
s bee
n up
date
d an
d is
also
bei
ng re
vise
d. 1
8 qu
alifi
catio
ns a
nd
190
asso
ciat
ed u
nit s
tand
ards
hav
e be
en
regi
ster
ed o
n th
e N
atio
nal Q
ualif
icat
ions
Fr
amew
ork.
3.
Lite
racy
and
N
umer
acy
“C
ompa
nies
shou
ld o
ffer
oppo
rtun
ities
for l
itera
cy
and
num
erac
y to
eve
ry
empl
oyee
by
2010
.”
Impl
emen
t a R
ecog
nitio
n of
Prio
r Lea
rnin
g (R
PL) s
yste
m a
t ABE
T 4/
NQ
F1.
Prom
ote
part
icip
atio
n in
ABE
T pr
ogra
mm
es a
mon
g m
inew
orke
rs.
Rele
ase
of w
orke
rs to
att
end
ABET
cla
sses
is
a co
nstr
aint
.
Ther
e ar
e w
orkp
lace
ince
ntiv
es th
at ta
ke
Lear
ners
aw
ay fr
om tr
aini
ng.
126
750
lear
ners
to p
artic
ipat
e in
ABE
T pr
ogra
mm
es b
y M
arch
201
0.
Qua
rter
ly A
BET
repo
rts a
ccep
ted
by
Boar
d an
d D
epar
tmen
t of L
abou
r.
Repo
rts o
n pr
omot
ing
Lang
uage
Pol
icy
acce
pted
by
EXC
O.
A to
tal o
f 12
748
lear
ners
ent
ered
ABE
T pr
ogra
mm
es in
the
2007
/200
8 pe
riod.
A
tota
l of 4
905
lear
ners
com
plet
ed A
BET
prog
ram
mes
in th
e 20
07/2
008
perio
d.
The
revi
ew o
f the
MQ
A la
ngua
ge p
olic
y is
com
plet
ed a
nd su
bmitt
ed to
Boa
rd.
ANNUAL REPORT 2007/2008
23
Cha
rter
Obj
ecti
ves
The
MQ
A P
lans
To:
Pote
ntia
l Cha
lleng
es:
MQ
A S
ucce
ss In
dica
tors
:Pr
ogre
ss R
epor
t fo
r th
e Pe
riod
20
07/2
008:
4.
Gen
eric
Ski
lls fo
r M
iner
s
“C
ompa
nies
shou
ld
prov
ide
trai
ning
op
port
uniti
es to
min
ers
to im
prov
e th
eir i
ncom
e ea
rnin
g ca
paci
ty b
eyon
d th
e m
ine.
”
Adop
t and
impl
emen
t a C
omm
unic
atio
n St
rate
gy to
pro
mot
e M
inin
g am
ong
new
en
tran
ts to
the
min
ing
Indu
stry
.
Brin
ging
mor
e Eq
uity
Min
ers i
nto
the
Indu
stry
.Ab
out 2
000
Sm
all S
cale
Min
ers t
o be
tr
aine
d in
Tec
hnic
al sk
ills b
y 20
10.
Abou
t 450
SM
MEs
to b
e tr
aine
d in
Min
eral
Be
nefic
iatio
n sk
ills p
rogr
amm
e by
201
0.
Som
e 40
4 sm
all s
cale
min
ers w
ere
trai
ned
durin
g 20
07/2
008.
84 le
arne
rs w
ere
trai
ned
in M
iner
al
Bene
ficia
tion
skills
in 2
007/
2008
.
5.
Mat
hs a
nd S
cien
ce a
t Sc
hool
s
“S
take
hold
ers s
houl
d pr
omot
e M
aths
and
Sc
ienc
e at
scho
ol le
vel.”
Supp
ort i
nitia
tives
of t
he g
over
nmen
t or
min
es to
pro
mot
e M
athe
mat
ics a
nd
Scie
nce
at sc
hool
s.
The
MQ
A w
ould
con
trib
ute
in k
ind
but
wou
ld n
ot m
anag
e sc
hool
pro
ject
s.Re
port
s of M
QA
supp
ort a
ccep
ted
by
Boar
d.N
o ta
rget
s wer
e se
t for
this
durin
g th
e 20
07/2
008
finan
cial
yea
r.
6.
Lear
ners
hips
“S
take
hold
ers s
houl
d in
crea
se re
gist
ered
Le
arne
rshi
ps fr
om
1 20
0 le
arne
rs to
not
le
ss th
at
5 00
0 by
Mar
ch 2
010.
”
To e
ncou
rage
com
pani
es to
take
on
mor
e le
arne
rs in
to L
earn
ersh
ips.
Prio
ritise
the
impl
emen
tatio
n of
the
RPL
syst
em.
Lear
ners
hip
targ
ets c
an o
nly
be m
et w
ith
the
coop
erat
ion
of e
mpl
oyer
s.
The
Sect
or ta
rget
of 5
000
lear
ners
is n
ot
spec
ified
per
indi
vidu
al m
ine
or p
er li
cens
e ho
lder
.
At le
ast 5
000
em
ploy
ees s
houl
d pa
rtic
ipat
e in
Lea
rner
ship
s by
Mar
ch 2
010.
Qua
rter
ly re
port
s on
Lear
ners
hips
are
pr
ovid
ed to
the
Boar
d an
d D
epar
tmen
t of
Lab
our.
In 2
007/
2008
the
targ
et o
f 1 1
18
empl
oyed
lear
ners
was
exc
eede
d in
that
1
865
lear
ners
ent
ered
lear
ners
hips
and
77
1 co
mpl
eted
lear
ners
hips
.
In 2
007/
2008
the
targ
et o
f 1 1
18
unem
ploy
ed le
arne
rs w
as e
xcee
ded
in th
at
1 78
3 le
arne
rs e
nter
ed le
arne
rshi
ps a
nd
1 25
1 co
mpl
eted
lear
ners
hips
.
7.
Empl
oym
ent
Equi
ty
(Man
agem
ent)
“C
ompa
nies
agr
ee
to sp
ell o
ut th
eir
empl
oym
ent e
quity
pla
ns
for j
unio
r and
seni
or
man
agem
ent l
evel
s and
to
targ
et a
40%
HD
SA
part
icip
atio
n in
5
year
s.”
Exte
nd th
e pe
riod
of M
QA
burs
ary
sche
me
to 2
010.
Giv
e gr
ants
to m
ines
that
pro
vide
pra
ctic
al
expe
rienc
e to
MQ
A, N
UM
and
oth
er
need
y an
d qu
alify
ing
stud
ents
stud
ying
in
simila
r fie
lds.
To re
quire
MQ
A ac
cred
ited
trai
ning
pr
ovid
ers t
o m
eet t
he 4
0% H
DSA
s tar
get.
The
MQ
A re
lies o
n co
mpa
nies
to p
rovi
de
burs
ars w
ith p
ract
ical
trai
ning
.
Way
s of a
ddin
g m
anag
emen
t com
pete
ncie
s on
top
of te
chni
cal Q
ualif
icat
ions
of
HD
SAs a
re n
eede
d.
Ove
r 1 5
00 le
arne
rs sh
ould
ben
efit
from
th
e Bu
rsar
y Sc
hem
e by
Mar
ch 2
010.
Qua
rter
ly re
port
s on
the
Sche
me
acce
pted
by
the
Boar
d an
d D
epar
tmen
t of
Lab
our.
Dur
ing
the
2007
/200
8 pe
riod,
729
HET
bu
rsar
s par
ticip
ated
in th
e M
QA
Burs
ary
Sche
me.
Dur
ing
the
2007
/200
8 pe
riod,
338
le
arne
rs u
nder
wen
t pra
ctic
al tr
aini
ng w
ith
vario
us c
ompa
nies
in th
e M
MS.
24
MINING QUALIFICATIONS AUTHORITYC
hart
er O
bjec
tive
sT
he M
QA
Pla
ns T
o:Po
tent
ial C
halle
nges
:M
QA
Suc
cess
Indi
cato
rs:
Prog
ress
Rep
ort
for
the
Peri
od
2007
/200
8:
8.
Empl
oym
ent
Equi
ty
(Wom
en)
“C
ompa
nies
agr
ee to
es
tabl
ish p
lans
for t
he
targ
et o
f 10%
wom
en
part
icip
atio
n in
Min
ing
with
in 5
yea
rs.”
Giv
e pr
iorit
y to
wom
en in
MQ
A sp
onso
red
prog
ram
mes
. C
ontin
ue th
e SA
WIM
A pr
ogra
m in
200
4.Li
nk w
omen
initi
ativ
es to
the
MQ
A SM
ME
Supp
ort S
trat
egy,
and
rela
ted
Dep
artm
ent
of M
iner
als a
nd E
nerg
y (D
ME)
act
iviti
es.
Iden
tific
atio
n of
targ
et p
opul
atio
n fo
r pr
omot
ing
Min
ing
amon
gst w
omen
is a
ch
alle
nge.
Expe
ctat
ions
cre
ated
by
the
Cha
rter
and
aw
aren
ess w
orks
hops
shou
ld b
e m
anag
ed.
Repo
rts o
n w
omen
repr
esen
tatio
n in
M
QA
prog
ram
mes
acc
epte
d by
the
Boar
d.D
urin
g 20
07/2
008
som
e 41
8 W
omen
En
trep
rene
urs w
ere
trai
ned
in
Proc
urem
ent a
nd 3
0 W
omen
trai
ned
in
Min
eral
and
Min
ing
Polic
y.
9.
Entr
epre
neur
ial
Trai
ning
“T
hrou
gh it
s ass
ocia
ted
inst
itutio
ns, t
he
gove
rnm
ent s
hall
prov
ide
trai
ning
cou
rses
in M
inin
g en
trep
rene
ur’s
skills
.”
Exte
nd th
e pe
riod
of th
e Ex
ecut
ive
Prep
arat
ion
Prog
ram
me
(EPP
) to
run
until
20
10 to
cov
er o
ver 3
00 p
artic
ipan
ts.
Roll
out t
he S
MM
E su
ppor
t str
ateg
y of
the
MQ
A in
ord
er to
ass
ist n
ew e
ntra
nts.
Trac
king
of E
PP tr
aine
es sh
ould
be
cond
ucte
d.
324
part
icip
ants
shou
ld b
enef
it fr
om E
PP
by F
ebru
ary
2010
.
Bi-a
nnua
l rep
orts
on
the
EPP
prog
ram
me
acce
pted
by
the
Boar
d.
Qua
rter
ly re
port
s on
the
impl
emen
tatio
n of
the
SMM
E su
ppor
t str
ateg
y ac
cept
ed b
y Bo
ard
and
Dep
artm
ent o
f Lab
our.
No
targ
et w
as se
t for
200
7/20
08.
The
EPP
was
disc
ontin
ued.
10.
Men
tori
ng o
f
Empo
wer
men
t G
roup
s
“C
ompa
nies
shou
ld
deve
lop
syst
ems t
o m
ento
r em
pow
erm
ent
grou
ps.”
BEE
men
torin
g ac
tiviti
es c
an b
e lin
ked
to
othe
r ini
tiativ
es su
ch a
s the
EPP
.D
ME
to c
omm
unic
ate
this
prov
ision
of t
he
Cha
rter
to B
EEs a
nd c
ompa
nies
.N
o ta
rget
s wer
e se
t for
this
durin
g th
e 20
07/2
008
finan
cial
yea
r.N
o ta
rget
s wer
e se
t for
this
durin
g th
e 20
07/2
008
finan
cial
yea
r.
11.
Exch
ange
O
ppor
tuni
ties
for
HD
SAs
“In
its b
i-lat
eral
s with
ot
her c
ount
ries,
the
gove
rnm
ent w
ill se
cure
op
port
uniti
es fo
r tra
inin
g an
d ex
chan
ge fo
r HD
SA
com
pani
es’ s
taff.
”
The
Boar
d to
ado
pt a
pro
cess
to su
ppor
t H
DSA
exc
hang
e w
ithin
the
man
date
of t
he
Skills
Dev
elop
men
t Act
and
in c
ompl
ianc
e w
ith th
e PF
MA.
A Bo
ard
polic
y is
requ
ired,
with
in P
FMA
and
MQ
A ju
risdi
ctio
n.
DM
E to
com
mun
icat
e op
port
uniti
es th
at
may
be
avai
labl
e to
the
HD
SAs.
The
MQ
A Bo
ard
shou
ld a
dopt
a p
olic
y po
sitio
n on
exc
hang
e pr
ogra
mm
es.
No
targ
ets w
ere
set f
or th
is du
ring
the
2007
/200
8 fin
anci
al y
ear.
ANNUAL REPORT 2007/2008
25
Cha
rter
Obj
ecti
ves
The
MQ
A P
lans
To:
Pote
ntia
l Cha
lleng
es:
MQ
A S
ucce
ss In
dica
tors
:Pr
ogre
ss R
epor
t fo
r th
e Pe
riod
20
07/2
008:
12.
Ben
efic
iati
on“C
ompa
nies
shou
ld g
et
invo
lved
in b
enef
icia
tion
activ
ities
bey
ond
Min
ing
and
proc
essin
g, to
incl
ude
prod
uctio
n of
fina
l co
nsum
er g
oods
.”
The
Boar
d to
con
sider
supp
ort o
f in
itiat
ives
by
the
Jew
elle
ry C
ounc
il an
d th
e D
ME
tow
ards
the
prom
otio
n of
be
nefic
iatio
n.
Des
ign
and
impl
emen
t a sk
ills p
rogr
am
for t
he d
evel
opm
ent o
f col
oure
d (s
emi-
prec
ious
) gem
ston
es.
Mos
t com
pani
es in
the
Jew
elle
ry in
dust
ry
are
SMM
Es a
nd fi
nd it
diff
icul
t to
part
icip
ate
in th
e sk
ills st
rate
gy
and
MQ
A is
cont
ract
ing
SDFs
to a
ssist
th
em.
Abou
t 720
lear
ners
to c
ompl
ete
trai
ning
in
Rur
al Je
wel
lery
Man
ufac
turin
g by
Mar
ch
2010
.
Dur
ing
the
2007
/200
8 fin
anci
al y
ear,
84
lear
ners
from
Hist
oric
ally
Disa
dvan
tage
d ba
ckgr
ound
s wer
e tr
aine
d in
Min
eral
Be
nefic
iatio
n Sk
ills (D
iam
ond
Eval
uatio
n).
12 o
ut o
f 73
Accr
edite
d Tr
aini
ng P
rovi
ders
pr
ovid
e M
iner
als B
enef
icia
tion
Trai
ning
Pr
ogra
mm
es.
21 o
ut o
f 27
84 A
sses
sors
are
regi
ster
ed
to a
sses
s and
mod
erat
e le
arne
rs o
n be
nefic
iatio
n pr
ogra
mm
es.
The
Disc
retio
nary
fund
s for
Jew
elle
ry
deve
lopm
ent i
s use
d to
also
supp
ort
trai
ning
in ru
ral o
r ind
igen
ous j
ewel
lery
.
The
MQ
A Bu
rsar
y Sc
hem
e in
clud
es
Tech
niko
n st
uden
ts st
udyi
ng in
“Je
wel
lery
D
esig
n an
d M
anuf
actu
re”.
13.
Min
e C
omm
unit
y an
d Ru
ral D
evel
opm
ent
“C
ompa
nies
shou
ld
co-o
pera
te in
the
form
ulat
ion
and
impl
emen
tatio
n of
ID
Ps fo
r com
mun
ities
w
here
Min
ing
take
s pl
ace
and
for m
ajor
la
bour
send
ing
area
s, w
ith sp
ecia
l em
phas
is on
dev
elop
men
t of
infr
astr
uctu
re”.
Allo
cate
R10
mil
NSF
fund
s to
10
Dist
rict M
unic
ipal
ities
and
man
age
the
impl
emen
tatio
n of
pro
ject
s.
Faci
litat
e th
e pa
rtne
rshi
ps w
ith in
dust
ry.
Phas
e ou
t the
MQ
A ro
le in
ex-
min
ewor
ker
trai
ning
. Tr
ansf
er c
oord
inat
ion
role
to
deve
lopm
ent a
genc
ies,
min
es a
nd D
ME.
MQ
A’s c
apac
ity to
man
age
the
dyna
mic
s of
this
envi
ronm
ent.
Abou
t 2 3
31 e
x-m
iner
s pro
xies
and
co
mm
unity
mem
bers
to p
artic
ipat
e in
pr
ojec
ts b
y M
arch
201
0.
Boar
d an
d D
epar
tmen
t of L
abou
r acc
ept
quar
terly
repo
rts o
n So
cial
and
Lab
our
Plan
supp
ort.
Boar
d ac
cept
s str
ateg
y an
d re
port
s for
M
QA
to p
hase
-out
its r
ole
on th
e So
cial
an
d La
bour
Pla
n.
Dur
ing
2007
/200
8 80
ex-
min
ewor
kers
, th
eir p
roxi
es a
nd c
omm
unity
mem
bers
w
ere
trai
ned
in In
dige
nous
Rur
al Je
wel
lery
Sk
ills P
rogr
amm
e.
14.
Proc
urem
ent
Stak
ehol
ders
und
erta
ke
to g
ive
HD
SAs p
refe
rred
su
pplie
r sta
tus i
n th
e pr
ocur
emen
t of c
apita
l go
ods,
serv
ices
and
co
nsum
able
s.”
The
MQ
A to
app
oint
a P
rocu
rem
ent
Spec
ialis
t and
mai
ntai
n a
prop
er su
pplie
r da
taba
se th
at c
lear
ly sh
ows H
DSA
pa
rtic
ipat
ion.
To id
entif
y th
e cu
rren
t lev
els o
f MQ
A pr
ocur
emen
t fro
m H
DSA
s and
ado
pt
proc
urem
ent t
arge
ts.
The
mov
e to
a re
pres
enta
tive
supp
lier
prof
ile w
ill re
quire
com
mitm
ent a
nd a
ctiv
e m
anag
emen
t.
Appo
int P
rocu
rem
ent S
peci
alist
by
April
20
04.
Boar
d to
ado
pt H
DSA
pro
cure
men
t ta
rget
s in
2004
.
Leve
ls of
HD
SA p
rocu
rem
ent r
epor
ted
to
Boar
d by
Aug
ust 2
004.
An H
DSA
supp
lier d
atab
ase
is se
t up
by
June
200
4.
The
Fina
nce
Uni
t app
oint
ed a
Pr
ocur
emen
t Spe
cial
ist b
y Ap
ril 2
004.
The
Boar
d ad
opte
d H
DSA
pro
cure
men
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4Section 4: Institutional Arrangements
section
4.1SectorSkillsPlanning 26 4.2StandardsSetting 32 4.3Learnerships,SkillsProgrammesand
Apprenticeships 37 4.4QualityAssurance 42 4.5StrategicProjects 44 4.6CorporateServices 49 4.7Finance,GrantDisbursementand
ManagementInformationSystems 55
26
ANNUAL REPORT 2007/2008
27
The objective of the Skills
Development Unit is to
facilitateskillsdevelopment
research,skillsplanningand
reporting, development
andupdatingof theSector
SkillsPlan(SSP),approvalof
WSP/ATR’s for mandatory
grants, analysis of scarce
and critical skills and the
setting of National Skills
Development Strategy
targetsandreportingprogressagainstthetargets.
The Unit is also responsible to facilitate skills development
supportforSmallScaleMiners,formineralbeneficiation,for
ex-minersandforwomenandtopromoteABETprovisionin
theSector.
Workplace Skills Plans and Annual Training Reports
TheparticipationoforganisationsintheMiningandMinerals
Sector(MMS)inthelevy-grantsystemhasincreasedsteadily
over time with a total of 479 companies within the MMS
submittingtheirWorkplaceSkillsPlans(WSPs)andtheAnnual
TrainingReports(ATRs)inthe2007-2008financialyear.Inan
efforttoassistcompanies,particularlysmallcompanies,with
thesubmissionandapprovaloftheirWSPsandtheATRs,the
MQAappointed8IndependentSkillsDevelopmentFacilitators
(SDFs). The challenge however remains to increase the
participation of companies, particularly small companies, in
thelevy-grantsystemintheSector.
Skills Development Facilitator Capacity Building
TheMQAembarkedonaprocessofbuildingthecapacityof
theSkillsDevelopmentFacilitatorsintheMiningandMinerals
Sector.Duringthisfinancialyear,workshopsontheWSP-ATR
2008-2009 Format and Guidelines and Scarce and Critical
SkillsGuidelineswereconducted. Atotalof135SDFsand
SkillsCommitteemembersattendedtheworkshops.
Scarce and Critical Skills
TheDepartmentofLabourrequiresthatallSETAsconduct
researchwithintheirrespectiveSectorstoidentifytheScarce
andCriticalSkillsneeds.Inthe2007-2008period,theWSP/
ATRsubmissionswereanalysedintermsofscarceandcritical
skills,indicatingareaswherethereisahighshortageofskills.
TheMQAdevelopedacomprehensiveguidelineandsupport
strategy to assist all role-players in the Sector to address
thesegaps.
Despitetheshortcomings intheidentificationofscarceand
critical skills, it seemsas if thesector is reacting to itsown
skillsneeds.Theincreaseinthenumberofbursariesandthe
numbersoflearnersonlearnershipsandskillsprogrammesin
2007/2008goessomewayinaddressingmostofthescarce
andcriticalskillsneedsofthesector.
In respect of scarce skills within the MMS, WSPs and SSP
researchinthecurrentNSDSphase(NSDSII)havereflected
constant scarcity in particular occupations. A summary of
thesescarceskillsbyoccupationalcategory ispresentedon
the next page together with the drivers identified to date
for this scarcity and some of the strategies that are being
developed or implemented to address the scarcity. Where
applicable, an asteriskhasbeenplacednext to scarce skills
whichhavealsobeen identifiedaspriorityskills in the Joint
InitiativeonPrioritySkillsAcquisition(JIPSA).
M PlasketSkillsDevelopmentManager
4.1 Sector Skills Planning
28
MINING QUALIFICATIONS AUTHORITY
Occupational Category Indicators and Drivers Development Strategies
Managers – particularly
• Production and Operation Managers
including Mine Overseers
• Environmental managers
• Finance Managers
• Technical Project Managers
• Owner Managers
• Long-term vacancies
• Low unemployment
• Replacement demand (retirement)
• Equity considerations – HDSAs with the
requisite skills combinations
• Geographical location
• Tertiary education
• Management development courses
• Special executive training programmes
• Career progression (path) planning
• Mentorship planning
• Internship planning
Professionals – particularly
• Engineers* – Electrical, Mechanical, Mining,
Chemical and Civil
• Geologists
• Metallurgists
• Surveyors
• Accountants
• Long-term vacancies
• Low unemployment
• Equity considerations
• Movement out of sector
• Geographical location
• Total number of graduates in these
disciplines insufficient to meet demand,
especially economic growth demand in the
MMS and other sectors of the economy
• Bursaries and bursary support for existing
employees and new labour market entrants
to obtain qualifications
• Initiatives to improve maths and science at
school levels, e.g. support or adopt schools
• Career progression (path) planning
• Mentorship planning
• Internship planning
Technicians and Trades Workers- particularly
• Engineering technicians*
• Instrument technicians*
• Mine Surveyors
• Draughtspersons
• Long-term vacancies
• Low unemployment
• Equity considerations
• Movement out of the sector
• Total number of graduates in technician
disciplines insufficient to meet demand,
especially economic growth demand in the
MMS and other sectors of the economy
• Bursaries and bursary support for existing
employees and new labour market entrants
to obtain qualifications
• Initiatives to improve maths and science at
school levels, e.g. support or adopt schools
• Career progression (path) planning
• Mentorship planning
• Internship planning
Technicians and Trades Workers – particularly
artisans
• Electricians*
• Instrument mechanics*
• Fitters and Turners*
• Plater-Boilermaker*
• Riggers
• Millwrights*
• Diesel motor mechanics*
• Plater-Welder*
• Team Leader / Mining Supervisor
• Diamond Sorters
• Diamond / Stone polishers
• Long-term vacancies in some occupations
• Movement out of the sector
• JIPSA and Department of Labour identified
artisans especially in engineering fields as an
absolute scarcity with replacement demand
and insufficient numbers to meet economic
growth demand in the MMS and other
sectors as drivers, i.e. engineering related
artisans categorised as priority scarce skills
• Qualifications review and improvement
– MQA Standards Generating Body (MQA
SGB)
• Learnership review and improvement
• Enhancements to the apprenticeship system
• Review and improvement of trade testing
system (MQA driving review)
• Establishment and support of Institutes of
Sectoral/Occupational Excellence (ISOEs)
• Additional grant funding and NSF Scarce
and Critical Skills funding window for artisan
development
• JIPSA and business leadership artisan
development support
ANNUAL REPORT 2007/2008
29
Occupational Category Indicators and Drivers Development Strategies
Machinery Operators and Drivers – particularly
• Miners
• Drillers
• Crane / Hoist / Lift Operators
• Truck Drivers
• Machine Operators
• High replacement demand
• Additional skilling required in specific
technical skills
- Rock breaking, blasting
- Health and safety
- Manufacturing
- Production
- Machine maintenance
• Additional skilling required in generic skills
- Communication
- ABET
• Large numbers of unemployed experienced
workers available requiring
- Mining contextual skills
- Learnerships
- Skills programmes
- In-service training
- ABET programmes
- RPL
• Career progression (path) planning
Elementary workers – particularly
• Mining Support workers
• Construction riggers
• High replacement demand
• Additional skilling required in specific
technical skills
• Unemployed experienced workers available
requiring
- Mining contextual skills
- Skills programmes
- In-service training
- ABET programmes
- RPL
• Career progression (path) planning
The MQA and the Mining and Minerals Sector have been
participating in a number of initiatives to address scarce
and critical skills. The MQA has a number of strategic
skills development initiatives in place, including bursaries,
learnerships, apprenticeships, ABET programmes, quali-
fications development and quality assurance of assessment
and training provision to support skills development especially
in scarce and critical skill areas. The MQA Scarce and Critical
Skills Guide, including the Support Strategy can be accessed
through the MQA website.
ABET Grants
The MQA Board approved R31 million for disbursement to
the Sector in the form of ABET Grants.
97 companies applied for the ABET grants in the period 2007
– 2008 and some R31 million in grants was allocated. The
MQA is currently disbursing grants to eligible companies. The
table below shows actual achievement against allocations and
NSDS II targets for registrations and completions.
RegistrationsABET Level NSDS II Target Allocation (planned) Actual
Level 1 3 000 6 789 4 008
Level 2 2 500 5 675 3 409
Level 3 2 000 4 781 3 463
Level 4 1 200 3 636 1 868
Total 8 700 20 881 12 748
30
MINING QUALIFICATIONS AUTHORITY
CompletionsABET Level NSDS II Target Allocation (planned) Actual
Level 1 3 000 2 008 1 873
Level 2 2 500 1 874 1 248
Level 3 2 000 1 715 1 046
Level 4 1 200 1 019 738
Total 8 700 6 616 4 905
ABET Practitioner Learnership
Of the 172 learners enrolled in the ABET Practitioner
Learnership conducted in 9 provinces in the previous financial
year, 45 learners completed a full NQF 4 qualification, 17
completed a full NQF 5 qualification and 49 received unit
standard certificates.
Small Scale Mining Technical Training
The objective of this project was to train and build the capacity
of Small Scale Miners in the Mining and Mineral Sector. An
amount of R 1,5 m was allocated to this project to train 600
Small Scale Miners in the Sector. The target was not achieved
as the last phase of training for a group of 200 learners rolled
over into April 2008 and hence will be reported in the next
financial year.
The table shows the achievement against target.
Provinces Planned Target Achievement
Limpopo 66 85
Gauteng 66 49
Free State 66 35
Mpumalanga 66 32
Kwazulu Natal 66 22
North-West 66 28
N Cape 66 57
Western Cape 66 0
E Cape 66 96
TOTAL 594 404
Mineral Beneficiation Project
This project focuses on providing support for skills development
in the field of beneficiation in the Mining and Mineral Sector.
An amount of R 2,5 m was allocated to this project. Phase 1
of the project was completed but phase 2, which was to train
320 learners, was delayed until the 2008/2009 financial year.
The planned target was hence not achieved.
The table shows the achievement against target for Phase 1
only.
Provinces Planned Target Achievement
North-West 30 44
N-Cape 30 20
Free State 20 20
Total 80 84
Ex-miners Support Project
The project supports the re-skilling of ex-mineworkers, their
proxies and community members. An amount of R 1 m was
allocated to this project to train 50 ex-mineworkers, proxies
and community members in the sector. The project was
conducted in the Eastern Cape (Hankey and Humansdorp),
together with the Department of Minerals and Energy, PE
College and the Kouga District Municipality. The training
consisted of a six-month Skills Programme in Indigenous
Jewellery Manufacturing.
The table shows the achievement against target for the
project.
ANNUAL REPORT 2007/2008
31
Group of Ex-miners
Planned Target Achievement
Group 1 25 40
Group 2 25 40
Total 50 80
Women in Mining Project
The project supports skilling women in the sector and in the
2007/2008 financial year, an amount of R 1 m was allocated to
the project. The project was conducted nationally, together
with South African Women in Mining Association (SAWIMA),
Department of Minerals and Energy (DME) and the National
Union Mineworkers (NUM). SAWIMA-DME trained 418
women entrepreneurs in Procurement skills. NUM trained
30 women leaders in Minerals and Energy Policy.
The breakdown of the training of women entrepreneurs is
as follows:
Provinces Planned Target Achievement
Limpopo 17 132
Gauteng 17 28
Free State 17 42
Mpumalanga 17 24
Kwazulu Natal 17 -
North-West 17 45
N Cape 16 66
Western Cape 16 35
E Cape 16 50
TOTAL 150 418
The KZN training took place in the 2008/2009 financial year.
Diamond cutters and polishers learners in training
32
MINING QUALIFICATIONS AUTHORITY
The objective of the
Standards Setting Unit is to
ensure that the Sector has
an acceptable Qualifications
Framework, ensure that
the Sector has the relevant
Qualifications and relevant
unit standards developed
and registered on the
National Qualifications
Framework (NQF). Using the services of Technical Reference
Groups (TRGs), qualifications and associated unit standards
are developed, learnerships and skills programmes are
developed and learning materials validated.
During this financial year the Mining and Minerals SGB
(M&M SGB) has contributed to the development of 15 new
qualifications and 81 associated unit standards that were
registered on the NQF for utilisation by the Sector:
J MoodleyStandards Generation Manager
4.2 Standards Setting
Name Of Qualification Nlrd No:
When Registered
1 FETC: Jewellery Setting - Level 4 58274 2 May 2007
2 NC: Electro-Mechanics - Level 2 58269 2 May 2007
3 NC: Electro-Mechanics - Level 3 58288 2 May 2007
4 FETC: Electro-Mechanics - Level 4 58270 2 May 2007
5 NC: Laboratory Practice - Level 2 58248 27 June 2007
6 NC: Engineering Fabrication - Level 2 58722 16 August 2007
7 NC: Engineering Fabrication - Level 3 58720 16 August 2007
8 FETC: Engineering Fabrication - Level 4 58721 16 August 2007
9 FETC: Laboratory Analysis – Level 4 58952 18 October 2007
10 NC: Mineral Processing – Level 2 59305 28 November 2007
11 NC: Generic Management – Level 5 59201 28 November 2007
12 NC: Occupational Safety – Level 5 58625 28 November 2007
13 ND: Occupational Safety – Level 5 58786 28 November 2007
14 NC: Diamond Processing – Level 3 59851 6 February 2008
15 NC: Rock Engineering: Strata Control Operations – Level 2 59549 6 February 2008
The SGB has also been reviewing the Qualifications that have reached their expiry date. The following 4 existing Qualifications
and 109 associated unit standards were reviewed and re-registered on the NQF:
Name Of Qualification Nlrd No:
When Registered
1 GETC: Mining and Mineral Processes (Reviewed) 58267 27 June 2007
2 NC: Mining Operations for Underground Hard Rock - Level 2 (Reviewed) 58739 16 August 2007
3 NC: Rockbreaking for Underground Hard Rock – Level 3 (Reviewed) 58760 16 August 2007
4 NC: Lump Ore Beneficiation – Level 2 (reviewed) Incorporated into the Mineral Processing Level 2 – SAQA ID
59305
ANNUAL REPORT 2007/2008
33
A request was submitted to SAQA to have the following qualifications re-registered as the review process indicated that generic
qualifications with appropriate specialization areas could be achieved:
Re-registered Qualifications on the NQF
1 NC: Lump Ore Beneficiation – Level 3
2 FETC: Lump Ore Beneficiation – Level 4
3 NC: Diamond Processing – Level 3
In addition, a further 10 Qualifications as listed below and their associated Unit standards were processed through the South
African Qualifications Authority Consultative Panel (an internal SAQA quality assurance process) and they should be registered
during the next financial year.
Qualifications Progressed Through the SAQA Consultative Panel Process
1 NC: Mechanical Engineering Fitting - Level 2
2 NC: Mechanical Engineering Fitting - Level 3
3 FETC: Mechanical Engineering Fitting - Level 4
4 NC: Mechanical Handling (Rigging) - Level 2
5 NC: Mechanical Handling (Rigging) - Level 3
6 FETC: Mechanical Handling (Rigging) - Level 4
7 NC: Mining Technical Support – Level 2
8 NC: Rock Engineering: Strata Control – Level 3
9 120 ct Cert(Eng), NQF level 5 – (Exit Level Outcomes Based Qualification)
10 120 ct Cert (Eng), NQF level 6 - (Exit Level Outcomes Based Qualification)
The following 38 Learnerships were developed:
Qualification Name of Learnership
1 NC Underground Coal Mining Operations – Level 3 Continuous Mining
2 Long Wall Mining
3 Mining - Blasting
4 NC: Electro-Mechanics - Level 2 Electro-Mechanics
5 NC: Electro-Mechanics - Level 3 Electro-Mechanics
6 FETC: Electro-Mechanics - Level 4 Electro-Mechanics
7 NC: Laboratory Practice - Level 2 Precious Metal Laboratory Practice
8 Coal Laboratory Practice
9 General Laboratory Practice
10 NC: Mining Operations for Underground Hard Rock - Level 2 UH: Conventional Mining
11 UH: Mechanised Mining
12 NC: Rockbreaking for Underground Hard Rock – Level 3 UH: Conventional Mining
13 UH: Mechanised Mining
14 NC: Engineering Fabrication - Level 2 Engineering Fabrication
15 NC: Engineering Fabrication - Level 3 Engineering Fabrication
16 FETC: Engineering Fabrication - Level 4 Engineering Fabrication
34
MINING QUALIFICATIONS AUTHORITY
17 FETC: Laboratory Analysis – Level 4 Laboratory Analysis M&M Sector
18 NC: Mineral Processing – Level 2 Mineral Processing: Lump Ore
19 Mineral Processing: Mineral Sands
20 NC: Mineral Processing – Level 2 Mineral Processing: Gold
21 Mineral Processing: Platinum
22 Mineral Processing: Uranium
23 Mineral Processing: Base Metal
24 NC: Diamond Processing – Level 3 Diamond Processing: Automatic Polishing
25 Diamond Processing: Bottom Polishing
26 Diamond Processing: Cutting
27 Diamond Processing: Preparation
28 Diamond Processing: Top Polishing
29 NC: Rock Engineering: Strata Control Operations – Level 2 Rock Engineering Strata Control: Surface Mining
30 Rock Engineering Strata Control: UC Mining
31 Rock Engineering Strata Control: UHR Massive Mining
32 Rock Engineering Strata Control: UHR Mining
33 NC: Mechanical Engineering Fitting - Level 2 Mechanical Engineering Fitting
34 NC: Mechanical Engineering Fitting - Level 3 Mechanical Engineering Fitting
35 FETC: Mechanical Engineering Fitting - Level 4 Mechanical Engineering Fitting
36 NC: Mechanical Handling (Rigging) - Level 2 Mechanical Handling (Rigging)
37 NC: Mechanical Handling (Rigging) - Level 3 Mechanical Handling (Rigging)
38 FETC: Mechanical Handling (Rigging) - Level 4 Mechanical Handling (Rigging)
The following 10 Skills Programmes were developed. Eight of these have already been registered, the other 2 (Nos. 6 & 10) will
be registered early in the next financial year.
Name of Skills Programme
1 Under Ground Hard Rock: Blasting Assistance
2 Under Ground Hard Rock: Comp A (Revised)
3 Under Ground Hard Rock: Comp B (Revised)
4 Under Ground Hard Rock: Secondary Blasting (Revised)
5 Under Ground Hard Rock: Rock Drill Operator
6 Under Ground Hard Rock: Trackless Mobile Machine Operations
7 CLAS: Milling Operations (Dry Process)
8 CLAS: Packing Plant Unitising Operations
9 CLAS: Occupational Health and Safety, Environment and Quality (Basic)
10 Under Ground Coal: Operate Mining Machinery In An Underground Coal Mine
172 learning packs were ratified by the TRGs.
The M&M SGB had to also contend with the agreement reached with SAQA around the continued registration of the 9 interim
Whole Engineering Trade Qualifications, which remains registered a year after the unit standards-based equivalent suite of
qualifications are registered.
ANNUAL REPORT 2007/2008
35
Two equivalency analyses were conducted. The Limited Scope
Blasting Certificate analysis was finalised and the analysis for
the Certificated Engineer/Manager was also performed and
awaits approval by the MQA Board.
Technical Information Sessions were held to inform the Sector
on qualifications and skills programmes that replace the Blasting
Tickets.
Targets
Actuals
Qualifications
Registered
13
18
Unit Standards
Registered
100
190
Skills Programmes
Developed
5
10
Learnerships
Developed
20
38
Targets
Actuals
Registration of Qualifications and Unit Standards and Development of Skills Programmes and Learnerships
Furthermore, Standards Setting grants to the amount of
R1 800 000 was paid out to small organisations that released
their employees to participate in standards setting activities.
36
MINING QUALIFICATIONS AUTHORITY
The strategy to improve the Historically Disadvantaged
South Africans’ participation on the TRGs continues to give
good results except in the area of black and coloured males.
The TRG representation for the financial year is depicted
graphically below:
TRG 23 (small scale mining NQF Levels 1-8) at the MQA offices
Participation of the TRG Members in Standards Setting Activitiesfor the Period April 2007 to March 2008
% Participation
Targets
M F
BLACK
21.65 6.19
36.66 4.71
M F
COLOURED
1.55 1.03
3.89 0.51
M F
ASIAN
2.06 0.00
1.67 0.31
M F
WHITE
59.28 8.25
48.52 5.82
% Participation
Targets
ANNUAL REPORT 2007/2008
37
The objective of the
Learnerships Unit is to
support the enrolment of
learners onto learnerships
and skills programmes,
the indenturing of appren-
tices into apprenticeship
programmes, in addition to
support the development
of learning materials and
to administer and maintain
learner records through the
DataNet System.
Learnerships, Skills Programmes and Apprenticeships
The MQA has since its inception registered 10 876 learners
in learnerships. Of the above figure, 4 445 learners have
completed the learnerships. This represents a 41%
completion rate to date. About 2 296 of the registered
learners were women (21%). Only 42 of the total registered
learners were disabled (0.8%). The peculiarity of the Sector
would explain this characterization of the numbers. However,
opportunities are there to make positive inroads in this area.
In this financial year, 3 648 learners were registered in different
learnerships. Within the last financial year, 2 022 learners
completed various learnership programmes. This represents
19% of the total completions since inception. Most of the
sector learnerships range between three and four year
programmes. The sector is therefore starting to see bigger
numbers in terms of completions because the first generation
of learners are starting to complete the programmes as
envisaged. It is projected that the completion numbers would
be increasing incrementally on a year to year basis due to the
pool of learners who have been in the system for some time
now and are due to complete the programmes.
It is interesting to note that in the last financial year, the sector
indentured only 53 apprentices in the system and to date the
MQA has 63 current apprentices undergoing training. On the
other hand, 21 apprentices were found competent through
the Recognition of Prior Learning route (In terms of Section
28 of the Manpower Training Act). This is contrary to the
popular and widespread view that employers prefer and
believe that the apprenticeship system is a better system than
learnerships. The numbers bare testimony to this.
In this financial year, 755 learners were registered by the
sector without a grant. This is a significant development in
the industry as employers were not registering learners in the
past if they were not going to receive grants. This is a positive
change that needs to be commended as it now indicates that
employers are prepared to train regardless of the SETA
grants.
The Learnerships Unit registered 9 learnerships programmes
at the Department of Labour during the financial year. This
brings to 75 the number of learnership programmes registered
by the MQA to-date.
The Unit is continuing with the verification of learners to
ensure that grants are disbursed for learners that are being
trained by the host companies. The MQA learner record
database is being effectively and efficiently maintained to
ensure the integrity of learner records and reports provided
to MQA stakeholders.
X NjikelanaLearnerships Manager
4.3 Learnerships, Skills Programmes and Apprenticeships
Jewellery Manufacturing in a Production Environment Learner Graduating
Participation of the TRG Members in Standards Setting Activitiesfor the Period April 2007 to March 2008
% Participation
Targets
M F
BLACK
21.65 6.19
36.66 4.71
M F
COLOURED
1.55 1.03
3.89 0.51
M F
ASIAN
2.06 0.00
1.67 0.31
M F
WHITE
59.28 8.25
48.52 5.82
% Participation
Targets
38
MINING QUALIFICATIONS AUTHORITY
Gauteng 665
KwaZulu-Natal 53
Limpopo 71
Mpumalanga 516
Northern Cape 60
North-West 303
Unknown 46
Western Cape 8
Free State 139
Eastern Cape 4
Learnerships 18(1) Entered
The Unit has conducted DataNet workshops during the year to
capacitate employers and MQA accredited training providers
in the use of the DataNet system and changes made.
The number of employees who were found competent in
various skills programmes climbed to a maximum of 184 978
during the financial year. 5 additional skills programmes were
registered during the year. This brings to 59 the number of
skills programmes registered by the MQA to date.
Only 33 apprentices were recorded for new indentures during
the financial year. This low number was recorded despite
the fact that the MQA has re-commenced the funding of
apprentices. At the end of the financial year, there were 63
apprentices undergoing training.
The table below summarises the intake of learners and
apprentices in the different programmes per province:
Province Learnerships 18(1) entered
Learnerships 18(2) entered
Section 13 entered
Skills Programmes completed
Total
Eastern Cape 4 3 3 400 410
Free State 139 41 1 3683 3864
Gauteng 665 611 27 15793 17096
KwaZulu Natal 53 77 1 1395 1526
Limpopo 71 173 - 920 1164
Mpumalanga 516 306 2 3520 4344
Northern Cape 60 329 1 417 807
North-West Province 303 197 3 15326 15829
Unknown 46 37 10 185 278
Western Cape 8 9 5 - 22
Grand Total 1865 1783 53 41639 45340
ANNUAL REPORT 2007/2008
39
Gauteng 17096
KwaZulu-Natal 1526Limpopo 1164
Mpumalanga 4344
Northern Cape 807
North-West 15829
Unknown 278
Western Cape 22
Free State 3864
Eastern Cape 410
All Learners
Gauteng 611
KwaZulu-Natal 77
Limpopo 173
Mpumalanga 306
Northern Cape 329
North-West 197
Unknown 37
Western Cape 9
Free State 41
Eastern Cape 3
Learnerships 18(2) Entered
40
MINING QUALIFICATIONS AUTHORITY
Learning Materials
Section 10 of the Skills Development Act No 97 of 1998
requires of SETAs to support the development of learning
materials. This activity is done in support of the implementation
of learnerships in the Mining and Minerals Sector. To discharge
this mandate, the MQA develops learning materials and makes
them available to the MQA Accredited Training Providers
at no cost. 167 learning material packs were developed
during the year with a further 178 learning material packs
undergoing development by the end of the financial year.
The Chamber of Mines coordinates the development of
learning materials on behalf of the MQA. Due to the fact that
most MQA qualifications are already in place in line with the
Mining and Minerals Qualifications Framework, the demand
for learning materials that need development is decreasing
as most learning materials are now available for training. To
date, 897 learning materials have been developed for various
learnerships and skills programmes.
Provincial Linkages
A Provincial Linkages strategy has been implemented by the
MQA with the aim of ensuring that the SETA reaches out to all
the Provinces and provide the necessary services required by
the customers. Each manager is responsible for representing
the MQA in at least two provinces. Managers also attend
the Provincial Skills Development Forums meeting in these
provinces and provide information and assistance as and
when needed by the DoL Provincial Offices and the offices of
the Premiers in these respective Provinces.
Executive Preparation Programme and Internships
The financial year also marked the recognition of the last
candidates that completed the MQA Executive Preparation
Programme and the candidates that completed the first MQA
Internship Programme. A function to mark the occasion was
held at the Midrand Conference Centre on 01 August 2007
and was graced by the Director General of the Department
of Labour Dr Venguard Mkhosana.
The MQA is proud to announce that the Internship
Programme (MQA/GDP) was a resounding success with 81%
of the original 119 recruited candidates now permanently
employed. The table below provides the status breakdown
of the 119 candidates at the end of the project.
Dr Vanguard Mkhosana, Department of Labour Director-General
MQA Graduate/Internship ProgrammeCategory Number
Number of Candidates employed within the Sector 81
Number of Candidates employed in other Sectors 15
Number of Candidates continuing with further studies 5
Number of Candidates dismissed for contravening company disciplinary codes 1
Number of Candidates currently looking for employment 9
Number of Candidates who were found unfit 4
Number of Candidates were unable to be traced 4
TOTAL 119
ANNUAL REPORT 2007/2008
41
National Skills Fund Project
The MQA is currently implementing a project which is jointly
funded with the National Skills Fund (NSF) that is aimed
at training 64 unemployed learners in Learnerships and 69
unemployed candidates in Internships (MQA Graduate
Development Programme - GDP). 9 Companies are
participating in this project across the country. Learners
in Learnerships and candidates in Internships are currently
undergoing training at the various sites. The project is
aimed at adding to the pool of artisans targeted for training
in support of the Joint Initiative for Priority Skills Acquisition
(JIPSA). It is also intended to contribute to the scarce and
critical engineering and professional skills that are in need
within the Sector.
The MQA has also applied for the funding for a second joint
project with the NSF for the training of 1000 artisans in line
with the JIPSA priority artisan skills list. A principled approval
has been made by the NSF and the MQA is waiting for the
signing of the Service Level Agreement between the two
parties to give effect to the implementation of the project.
The 1000 Learners will be over and above the numbers to be
trained by the MQA in the 2008/2009 financial year.
Beneficiation Support
The Learnerships Unit has commenced with critical discussions
with the Diamond and the Jewellery Council with the aim of
implementing support projects for these sub-industries during
the 2008-2009 financial year. The two projects are aimed at
effectively adding to the current MQA initiatives in support
of mineral beneficiation in South Africa. Both projects are
planned for implementation in the financial year 2008-2009.
At the end of the financial year, significant progress was made
with the Diamond Council towards the development of a
Memorandum of Understanding between the MQA and the
Council. Strides had already been made in the development
of the Diamond Industry Skills Development Plan and the
finalisation of a budget to support the intentions of the plan.
GDP Candidates
42
MINING QUALIFICATIONS AUTHORITY
The objective of the
Quality Assurance Unit
was to maintain the quality
of learning provision in the
Mining and Minerals Sector
by accrediting Education
and Training Providers,
granting programme
approvals, conducting
external moderation of
learner achievements and
registering assessors and
moderators.
Assessors and Moderators
During the financial year 474 assessors and 84 moderators
were registered.
ISO GrantProviders were invited to apply for the ISO grant at the
beginning of the financial year. 8 providers applied and 3 of
them have been paid. The remaining 5 did not qualify for
grants since they failed to start with the implementation
process.
SAQA Performance EvaluationThe MQA is considered therefore to have met its statutory
obligations by delivering activities that supported and
promoted the objectives of the NQF. The SAQA Performance
evaluation report states that MQA has shown evidence of
performance in all but a few areas.
n The ETQA needs to have clear criteria for the impact,
which its quality assurance systems is intended to have. n In order to show effectiveness, quality promotion activities
must promote legitimacy and relevance and show evidence
that results compare well with inputs. The ETQA has
not measured the impact (effectiveness) of interventions
delivered to improve valid, reliable and practicable
assessment within constituent providers. n Quality indicators have not been established to improve
effectiveness in terms of assessment and moderation.n No evaluation was evident to prove that users see the
registration process for constituent assessors as effective.n Budgets produced during the audit did not drill down to
a level that shows budgeted costs for the registration of
assessors were not exceeded.n There was no evidence provided to show that resource
requirements for the implementation of MoUs have been
evaluated and costs have been minimized.
Accreditation and Programme Approval
Compliance Audits34 Compliance audits were conducted and the following 32
providers retained their accreditation status:
R MonareETQA Manager
4.4 Quality Assurance
Providers that have received Accreditation with the MQA for the 2007-2008 Financial Year
1. Imfundiso Skills Development 12. JIC Mining Services 23. Zurel Bros
2. Vuselela Empowerment Institute 13. Tshikondeni Mine 24. Siyemba Business Enterprise
3. Concor Mining 14. TM Training Initiative 25. Metskill
4. Safety and Training Practitioners 15. Shaft Sinkers 26. De Beers Cullinan Mine
5. Snowden 16. Northam Platinum Mine 27. Impala Platinum Mine
6. Kumba Grootegeluk 17. Harry Oppenheimer Diamond School 28. Vukani Ubuntu
7. Palabora Mining 18. Platreef Resources 29. Gliteratti Training
8. Technology Risk Solutions 19. Xtract Training Services 30. Harmony Mine
9. European Gemological Laboratory 20. Mintek 31. Colliery Training College
10. Murray and Roberts 21. Lonmin Platinum 32. Goldfields Business and Leadership Academy
11. Duncan Jewellers 22. Barden Training
ANNUAL REPORT 2007/2008
43
New Accreditation Audits10 New accreditation audits were conducted and the
following 5 providers were granted accreditation
1. Exxaro Base Metals Pty Ltd (Zincor)
2. Quarito Productivity
3. Fanyakazo
4. Train with Results (TWR)
5. Pneuma Jewellers
Programme ApprovalThe following providers received Programme Approvals:
1. Triple E
2. Orbit College
3. Goldfields FET
4. PE College
5. Barloworld
6. African Explosives
Scope Extension to Quality Assure Qualifications
The MQA has applied and been granted by SAQA for extension
of scope to quality assure the following 12 qualifications and
or learning programmes registered by the Mining and Minerals
SGB:
No. Qualification/Learning Programme (LP) ID
Qualification/Learning Programme Name
1 58267 GETC: Mining and Mineral Processes
2 58248 NC: Laboratory Practice Level 2
3 58739 NC: Mining Operations for Underground Hard Rock Level 2
4 58760 NC: Rockbreaking for Underground Hard Rock Level 3
5 59851 National Certificate: Diamond Processing Level 3
6 59305 National Certificate: Strata Control Operations Level 2
7 60290 - LP National Certificate: Engineering Fabrication: Mining & Minerals Level 2
8 60291 - LP National Certificate: Engineering Fabrication: Mining & Minerals Level 3
9 60292 - LP Further Education & Training Certificate: Engineering Fabrication: Mining & Minerals Level 4
10 60293 - LP National Certificate: Electro-Mechanics: Mining & Minerals Level 2
11 60294 - LP National Certificate: Electro-Mechanics: Mining & Minerals Level 3
12 60295 - LP Further Education & Training Certificate: Electro-Mechanics: Mining & Minerals Level 4
New Venture Creation Provider Project
5 training providers have been identified and have applied
for programme approval from the Services SETA. A letter
was received from the Department of Labour (DoL) stating
that MQA can claim credits for providers accredited by the
Services Seta.
Institutions of Sectoral or Occupational Excellence (ISOE’s) Project
6 Providers submitted their portfolio of evidence and 5
conducted impact studies on the learners placed in the
industry and reported on the learners. MQA allocated a
support grant of R50 000 for each provider for training
(assessors, moderators, ETDP and for the cost for impact
study conducted). Providers will be evaluated in the new
financial year.
Personal Digital Assistance (PDA) Software Project
The PDA tendering process has been completed and the
successful service provider has been appointed. 76 Unit
Standards were submitted and the amount of R249,000,00
has been paid to the provider.
44
MINING QUALIFICATIONS AUTHORITY
The objective of the
Projects Unit is to facilitate
the establishment of a
Project Management
Culture within the MQA,
to manage a range of
allocated projects and to
capacitate Project Owners
within the MQA in Project
Management principles and
systems.
Employment Equity in Universities Project
This programme focussed on assisting Mining Departments
of 4 universities to achieve employment equity and
transformation targets for their lecturers within their Mining
Engineering and Mine Surveying departments.
The project specifically focussed on developing and
empowering Historically Disadvantaged South African
Lecturers in the Mining and Minerals Departments in the
four participating Universities: UNISA (1 lecturer), WITS (4
lecturers), University of Pretoria (2 lecturers ) and University
of Johannesburg (2 lecturers).
During the period 2007 - 2008, a total number of 9 Lecturers
were appointed to lecture in the Mining and Mine Survey
departments of the participating universities.
MQA/Further Education and Training Colleges/National Business Initiative Project
This project focussed on supporting FET Colleges. The
purpose of this project was to create a close and sustainable
partnership between FET colleges serving the Mining and
Minerals Sector. It also aimed at closing the existing gaps
between what the mining industry wants from the FET
graduates, and what the 16 participating FET Colleges
produce. The National Business Initiative (NBI) conducted
a comprehensive study of the learning pathways and related
curricula/learning programmes available to the Mining and
Minerals Industry. This study enabled the MQA to evaluate
the comprehensiveness of the various pathways and to
put programmes in place to close the gaps with specific
interventions.
Bursaries and Practical Training Project
The aim of the Bursary & Practical Training Scheme was to
create a pool of qualified graduates to pursue careers within
the Mining and Mineral Sector. This project is in support of
the Mining Charter and the National Skills Development
Strategy (NSDS). The Bursary Scheme has been funded from
the MQA surplus funds and 729 (target 225) Higher Education
bursars entered in the MQA Bursary Scheme from HET/FET
Institutions.
A total of 52 (target 50) students successfully completed
studies this past year. During July to December 2007, 78
students were doing the practical training with various mining
companies. In January 2008 a further 218 students were
placed to do practical training with 16 mining companies. A
total of 296 (target 90) students were placed with various
mining companies to gain workplace experiential training. A
total of 1 025 students have been assisted with bursaries and
practical training in 2007-2008 financial year.
L ManyaduStrategic Projects Manager
4.5 Strategic Projects
Indigenous Jewellery Project
ANNUAL REPORT 2007/2008
45
Bursaries and Practical Training Students
No Critical and Scarce Skills Total 2007-2008 Bursars Studying 2007-2008 Practical 2007-2008
1 Analytical Chemistry 43 27 16
2 Chemical Engineering 53 40 13
3 Electrical Engineering 203 140 63
4 Electro-Mechanical Engineering 2 1 1
5 Engineering & Related Design 17 17 0
6 Environmental 21 17 4
7 Extraction Metallurgy 18 18 0
9 Geology 174 163 11
10 Industrial Engineering 6 5 1
11 Jewellery Design 57 57 0
12 Mechanical Engineering 134 87 47
13 Metallurgical Engineering 103 69 34
14 Mine Survey 11 6 5
15 Mining Engineering 183 82 101
TOTAL 1 025 729 296
New Venture Creation Learnerships Project
The New Venture Creation Learnership Programme was
developed in support of the National Skills Development
Strategy (NSDSII) targets, and seeks to provide business
management related training to historically disadvantaged
individuals who have just established, or want to establish,
their own mining related enterprises. It empowers historically
disadvantaged individuals with interest in opening own their
small enterprises that will benefit the Mining and Minerals
Sector.
Three Services SETA accredited training providers were
appointed to train 122 (target 89) learners in three Provinces.
(North West: Rustenburg and Carletonville, Western Cape
and Limpopo). The three training providers are: Megro
Learning, College of Cape Town and Letsatsi.
Projects Discretionary Grant 2007/2008 Financial Year
Project Objective Approved Budget
Beneficiaries Responsible Unit
University
Employment Equity
Project
To help the Universities to achieve the
employment equity and transformation
within their Engineering and Mine Surveying
departments
R4,8m 9 lectures appointed Projects Unit
FET Support To create close and sustainable partnerships
between colleges and the Mining and Minerals
Sector
R600,000 16 participating FET Projects Unit
Higher Education
Bursary and Practical
Training Project
To create a pool of graduates to pursue careers
within the Mining and Minerals Sector
R24,2m 1025 students assisted with
both bursaries and practical
training
Projects Unit
46
MINING QUALIFICATIONS AUTHORITY
New Venture Creation To provide business management related
training to HDI’s who have just established
or want to establish their own mining related
enterprises
R3,728m 122 learners trained on New
Venture Program
Projects Unit
PDA Standardized
Assessment Guide
Development
In support of the SAQA Performance Auditing
Model for ETQA’s to create effective, efficient
and economical avenues to maintain the
integrity and quality of learning provision and
assessment
R550, 000 Accredited Training Providers ETQA Unit
Assessor and
Moderator registration
Grant
To support the registration of assessors and
moderators in the Sector
R350, 000 Accredited Training Providers
and Providers Working Towards
Accreditation
ETQA Unit
ISO Implementation
Grant
To achieve uniformity in the industry by
adopting the ISO 9001:2000 as the preferred
standard
R310, 000 Accredited Training Providers
and Providers Working Towards
Accreditation
ETQA Unit
Grants for Accredited
Training Providers to
implement IIP
Section 30B of the Skills Development
Amendment Act,No.31 of 2003, states:
“National Standard of good practice in skills
development” 30B (1) In order to achieve
this Act, the Minister may, by notice in the
Gazette, establish a national standard of good
practice in skills development.
R0 Accredited Training Providers ETQA Unit
National Skills Fund
Project (1)
To provide on-the job training to young
unemployed graduates and diplomates
from Universities of Technologies who have
qualified in the scarce skills disciplines within
the Mining and Minerals Sector
R5,300,000 64 unemployed Learners in the
Plater boiler Making, Fitting and
Turning and Fitting including
machining Learnerships.
69 unemployed Learners to be
placed in the MQA Graduate
Development Programme
Learnerships Unit
Learning Material
Development Project
To provide funding to accredited training
providers through the Chamber of Mines
Initiative for the development of Learning
Materials for the Unit Standards populating
all qualifications that are regarded as Core to
the MQA
R1,500,000 Development of 194Learning
materials packs required by the
Mining and Minerals Sector to
enable Learnerships and Skills
programme Implementation.
Learnerships Unit
Learnerships Grants To provide funding for the registration of 18.1
and 18.2 learners
R69,272,00 To train 1118 employed and
1118 unemployed Learners in
the Core Learnerships of the
MQA
Learnerships Unit
ANNUAL REPORT 2007/2008
47
Projects and Grants 2007/2008
Apprenticeships Grants To provide funding for the indenture
of Apprentices in Apprenticeship
programmes
Included in the
leanership grant
To train 150 Apprentices indentured in
the MQA designated trades.
Learnerships
Unit
Standard Setting
Project
To encourage employers to continue
contributing to standards setting activities.
R 1,350 000 The beneficiaries are small employers
who release suitable Subject Matter
Experts to participate in Standards
setting activities.
SGB Unit
Unit Standards
and Qualifications
registration Project
To facilitate the design of qualifications and
writing of unit standards for the National
Qualifications Framework, development of
learnerships, learning programmes, skills
programmes and editing and validation
activities
R550 000 Utilising the services of professional
consultants to develop unit standards
and qualifications for submission to
SAQA, which will benefit the learners
in the Mining and Minerals Sector. In
addition this project will support the
development of skills programmes,
learning programmes and Learnerships
for registration at the DoL or at
the SETA. This may include related
research, TRG validation and editing
activities.
SGB Unit
Graduate
Development
Programme (GDP)
To train and provide on the job
experience to unemployed graduates
from Universities and Diplomates
from University of Technologies with
qualifications in the scarce skills disciplines
in the Mining and Minerals Sector
R1,386,000 Young unemployed graduates and
diplomats who have completed
qualifications in the scarce skills
disciplines identified in the MQA
Sector Skills Plan. The required end
results is for these graduates to get a
two years of structured and relevant
industry experience so as to access full
time employment within the Sector.
Learnerships
Unit
ABET grants To incentivise mining companies to provide
ABET training for their employees.
To increase levels of literacy in the Sector.
Incentivise learners who attend and
complete ABET training.
R31m A total of 12 731 learners have
entered ABET programmes.
Breakdown per level:
Level 4: 1 868
Level 3: 3 463
Level 2: 3 400
Level 1: 4 000
A total of 4 905 learners have
completed ABET programmes.
Breakdown per level:
Level 4: 738
Level 3: 1 046
Level 2: 1 248
Level 1: 1 873
SSP Unit
48
MINING QUALIFICATIONS AUTHORITY
ABET Practitioner Leanership To train 500 ABET
Practitioners in the
Mining and Mineral
Sector who wish to align
their current qualification
to the NQF.
R3,277,658m 172 learners enrolled in 9 provinces,
45 learners completed a full NQF
qualification, 17 completed a full NQF
5 qualification and 49 received unit
standard certificates.
SSP Unit
Small Scale Mining Technical Project To train and build the
capacity of small-scale
miners (SMME’s) as per
original budget.
R1,5m 404 learners trained in 9 provinces. SSP Unit
Mineral Beneficiation To train informal
and formal SMMEs
beneficiaries in Diamond
Evaluation and Mineral
Processing.
R2,5m 84 learners trained in 3 provinces. SSP Unit
Ex- Miners Support the re-skilling
of ex-mineworkers,
proxies and community
members.
R1m 80 learners trained in E. Cape SSP Unit
Women in Mining To increase the
awareness and build
capacity of Women in
the Mining and Mineral
Sector.
R1m 448 learners trained in 8 provinces SSP Unit
Levy- Grant Participation To facilitate and build
capacity of Skills
Development Facilitators
and Company Skills
Committees in the
Mining and Minerals
Sector.
R100, 000 Levy payers targeted to participate
in mandatory grants and other SD
initiatives
SSP Unit
SMME ISDF To support the SMMEs
in the Mining and
Minerals Sector with
skills development (i.e.
completion of workplace
skills plans, Annual
training report, etc).
R600 000 8 ISDF assisted SMME’s in all 9
provinces
SSP Unit
Institution Of Sectoral Or Occupational
Excellence (ISOE)
In line with National
Skills development
Strategy (NSDS) 2005
- 2010, Objective 5
“improving the quality
and relevance of
provision” indicator 5.1,
SETAs are expected to
recognise Institute of
Sectoral or Occupational
Excellence (ISOE).
R1,2m Project in progress ETQA Unit
ANNUAL REPORT 2007/2008
49
The Corporate Services unit
renders support services to
MQA Management staff
and Stakeholders in the
execution of our legislative
mandate which is to facilitate
skills development in terms
of the Skills Development
Act of 1998. The highlights
of the Corporate Services
Unit for the year under
review are reflected
hereunder.
Corporate Governance
The MQA continued to strive towards implementing sound
corporate governance principles in the year under review.
The Board induction workshop was held on 01 June 2007
aimed at capacitating stakeholders on the mandate, vision,
mission and strategic objectives of the MQA.
The Institute of Directors [IOD] conducted the following
courses for Board members, Managers and Specialists in our
continuous effort to increase knowledge of good corporate
governance principles:n The Legal Compliance Seminar was held on 22-23 March
2007 at the Parktonian Hotel;n Finance for Directors was held on 31 May 2007 at
Parktonian Hotel;n The PFMA Workshop was held on 25 July 2007 at Cedar
Conference;n The PFMA Workshop was held on 22 August 2007 at
Parktonian;n The PFMA Workshop was held on 28 November 2007 at
Gold Reef City;n The Board Governance workshop on the roles and
responsibilities of the Board was held on 6 December
2007.
In compliance with good corporate governance principles, the
self evaluation of the Board was facilitated by the department
of Labour on 02 August 2007. All Board members annually
declare their financial and business interests and accept their
fiduciary duties in line with the Public Finance Management
Act.
The Board strategic planning session took place on 01 & 02
November 2007 to develop a strategic position to overcome
challenges facing the MQA currently and beyond 2010.
Stakeholder Capacity Building
A successful labour capacity building workshop took place
on the 26 March 2008 at Elijah Barayi Memorial Training
College. The aim of the workshop was to capacitate new
Labour Representatives on the role, responsibilities and
strategic objectives of the MQA. Further workshops on the
completion and signing of Workplace Skills Plans and Annual
Training Reports will be convened in the new financial year.
Human Resources
The unit once again provided valuable support to core line
functions in the achievement of organisational objectives
through the provisioning of the human resources support
services.
The roll out of the Culture programme is in its final stages
with the finalisation of the culture impact assessment.
The results of the impact assessment are indicative of an
improvement in the overall business activities although lack
of proper communication was cited as an area that requires
further improvement. The high turnover of staff in SETA’s
prompted the MQA to relook at its Retention policy in an
attempt to retain suitably qualified and experienced staff and
maintain institutional memory. A succession plan for the CEO
and executive management was compiled for discussion with
the MQA Executive Committee.
The MQA Employment Equity Plan stipulates clear targets for
the advancement of previously disadvantaged individuals and
increase of women in managerial positions. Opportunities
such as training and development and the provision of study
aid are some of the mechanisms introduced to ensure human
resources development amongst the diversified workforce
of the MQA. The development of the interns remains a
priority and the MQA is proud to announce that at least 70%
D BarclayCorporate Services Manager
4.6 Corporate Services
50
MINING QUALIFICATIONS AUTHORITY
of interns find suitable employment before their 12 months
contracts expire.
The introduction of the new Performance management system
is in its second year in which staff is rewarded for consistent
performance. As part of the performance management system,
management identifies training opportunities for staff to be
incorporated in an annual training and development programme.
The MQA is committed to ensure career advancement of
employees through its study aid programme to ensure that
they become specialists in the areas of their responsibilities.
Remuneration Packages as at 31 March 2008
Male Female
Occupational category A C I W A C I W Total Total cost to company
General and support 1 0 0 0 3 0 0 0 4 R 80 000 -100 000
Administrators 6 1 0 0 4 1 0 0 12 R 101 000 - 200 000
Specialists 5 0 2 1 7 0 0 0 15 R 240 000 - 300 000
Managers 2 0 0 0 1 0 1 1 5 R 401 000 - 550 000
Senior Officials/ Managers 0 1 1 1 0 0 0 0 3 R 551 000 - 700 000
Executive Managers 1 0 0 0 0 0 0 0 1 R 701 000 - 800 000
Resignations in the 2007/2008 Financial Year
Male Female
Occupational category A C I W A C I W Total
General and support 0 0 0 0 0 0 0 0 0
Administrators 1 0 0 0 5 1 0 0 7
Specialists 1 0 0 0 0 0 0 1 2
Managers 1 0 0 0 1 0 0 0 2
Senior Officials/ Managers 0 0 0 0 0 0 0 0 0
Executive Managers 0 0 0 0 0 0 0 0 0
Total 3 0 0 0 6 0 0 1 11
Appointments in the 2007/2008 Financial Year
Male Female
Occupational category A C I W A C I W Total
General and support 0 0 0 0 0 0 0 0 0
Administrators 4 0 0 0 3 0 0 0 7
Specialists 1 0 0 0 2 0 0 0 3
Managers 1 0 0 0 0 0 0 1 2
Senior Officials/ Managers 0 0 0 0 0 0 0 0 0
Executive Managers 0 0 0 0 0 0 0 0 0
Total 4 0 0 0 3 0 0 1 10
ANNUAL REPORT 2007/2008
51
Office Management
The MQA maintained its ISO 9001: 2000 accreditation
from September 2005 through effective application of ISO
workshops based on best practices. An ISO workshop was
conducted by South African Bureau of Standards on 23 -24
October 2007. The external audit was conducted by Alpha
Certification on 23 January 2008, and only 7 minor observations
were noted. The re-certification audit is scheduled for 02
September 2008 for another three years.
The appointment of a new travel agency was finalised for
a period of two years and the MQA office was certified as
safe and secure in line with the provisions of the Minimum
Information Security Standards.
Communications
The Communications Unit is charged with the responsibility
of ensuring that communication with the MQA’s stakeholders
and the general public is effectively and efficiently managed
in order that relevant messages that affect the sector may
be correctly conveyed. The year under review continued
with the implementation of a comprehensive five (5) year
Communications Strategy (2006 – 2010). The strategy
took on a broader approach in ensuring that the MQA can
best meet and exceed the expectations of our stakeholders
without losing focus on our legislative mandate, vision and
mission.
An operational plan for the year under review was derived
from the strategy to ensure alignment with the annual business
plan. The review was also necessary to ensure that activities
are in line with the available budget without compromising
quality and standards of communication by spending available
resources economically.
This included a number of integrated marketing
communications activities aimed at creating awareness of the
SETA’s involvement in skills development and training within
the Mining and Minerals Sector and also enhancing the MQA’s
image amongst stakeholders.
Print MediaFunds allocated for publicity were used for placing adverts
and advertorials in national newspapers and magazines such as
Umsobomvu Youth magazine, SAWIMA Quarterly, Youth for
Life magazine, Achiever, CEO magazine, Mining Weekly and
Mining News. The aim was to enhance the image of the MQA
as well as to publicise the MQA’s activities, achievements,
projects, grants and events.
RoadshowsThe roadshows were aimed at providing both the MQA
stakeholders and the general public with information on
projects, grants, services and opportunities available in
the Mining and Minerals Sector. The year under review
saw a shift from hosting the roadshows in June annually.
Future roadshows will be held in February. The MQA held
roadshows in Rustenburg, Polokwane, Witbank, Welkom,
Namakwaland, Kimberly, Port Elizabeth, Cape Town, Umtata,
Durban and Johannesburg from 29 January to 29 February
2008. Roadshows were also extended to rural areas such as
Bapong, Phalaborwa, Baberton and Vryheid.
The roadshows provided the MQA with an opportunity to
disseminate information on the services and projects offered
as well as advising delegates on how to access discretionary
projects and grants. Participants were also able to discuss
issues relating to learnerships, skills programmes, registered
qualifications, company skills planning and reporting,
accreditation of training providers, special projects such as
Adult Basic Education Training (ABET), Graduate Development
Programme (GDP), Small Scale Mining Support, Women in
Mining Support, and Bursaries and Practical Training Scheme.
ExhibitionsThe MQA is responsible for skills and human resources
development in the sector and must therefore ensure that the
sector and the general public is aware of it’s existence. The
MQA showcased it’s products and services at the following
industry related exhibitions; n Human Resources development held at Gallagher
Estate in Midrand from 06 – 08 June 2007;n Jewellex International, held at the Sandton Convention
Centre from 14 – 17 July 2007;n College of Cape Town Open Day held at the College of
Cape Town on 01 September 2007;n North West Provincial Skills Development Conference
held at the Rustenburg Civic Centre from 08 - 10
September 2007; n Beatrix Mine Career Exhibition held at Gold Fields
52
MINING QUALIFICATIONS AUTHORITY
Beatrix Mine on 29 September 2007;n Lonmin Development Career Expo held in Segwaelane,
Bapong from 14 - 15 September 2007;n BHPBilliton Careers Exhibition held at Klipspruit
Information Centre from 03 - 04 March 2008;n DME Mounting Ceremony Exhibition held at Fort Hare
University on 13 March 2008.
In collaboration with the Department of Minerals and Energy,
the MQA participated in a number of community information
sessions aimed at assisting underprivileged communities
to access opportunities within the sector and the Learners
Focus week aimed at encouraging learners to take up careers
in mining.
Special EventsAs part of continued consultation with focus stakeholder
groups, all business units within the organization held a number
of quarterly forums to keep their customers informed of
progress within their areas of service delivery. The MQA also
hosted the following strategic events to provide information,
educate and celebrate successes and achievements with
stakeholder groups during the 2007/2008 financial year:
n An Alumni Event for the Executive Preparatory
Programme candidates was held on 01 August 2007 at
the Midrand Conference Centre and at the same event
recognition was given to candidates who had completed
the MQA Graduate Development Programme. The
event was graced by the Director General of the
Department of Labour, Dr Vanguard Mkosana, who
delivered a keynote address.
n In an effort to ensure that support is given to the
Department of Minerals and Energy’s priorities of
addressing constraints faced by the local beneficiation
of minerals, the MQA assisted a number of Historically
Disadvantaged Individuals (HDI’s), most of whom
were women, in attaining qualifications in Jewellery
Manufacturing and Diamond Processing. The MQA was
privileged to witness and participate in three graduation
ceremonies honouring these learners organized by the
following three institutions:
1. College of Cape Town – Jewellery Manufacturing
Graduation Ceremony.
2. Imfundiso Skills Development - Jewellery
Manufacturing Graduation Ceremony.
3. Zurel Bros – Diamond Processing Graduation
Ceremony.
n On 31 October 2007, the MQA hosted its 7th Annual
Consultative Conference at the Emperors Palace in
Johannesburg. The conference was attended by over 300
industry stakeholders. The highlight of the conference
Learners obtaining information from the MQA stand at the Lonmin Career Expo
ANNUAL REPORT 2007/2008
53
was a panel discussion by industry experts on skills
development challenges facing the industry and economy
today and beyond 2010. The Conference was graced by
the Chairperson of the JIPSA Working Group, Mr. Gwede
Mantashe who delivered a keynote address. He praised
the MQA for the sterling work done to eliminate illiteracy
in the Mining and Minerals Sector, but warned that a lot of
work still needs to be done due to the legacy of the mining
industry. His address placed particular emphasis on the
support of women in the predominantly male dominated
environment, transformation, Adult Basic Education and
Training (ABET), bursaries and opportunities for young
graduates to make their mark in the industry.
n The Standards Generation Body (SGB) Plenary Session
was held on 28 March 2008 to acknowledge work done by
Technical Reference Groups (TRGs) in the development
of unit standards and qualifications. The groups also
discussed success indicators and challenges encountered
during the year and interventions to further increase the
current successes were addressed.
WebsiteThe MQA continued to promote the website as the primary
source of information for existing and potential customers.
All registrations for major events and conferences were done
through the website. For the period 1 April 2007 – 31 March
2008, 1,340,031 users visited the website, in comparison to 487
878 in the 2006/2007 and 441 332 in the 2005/2006 financial
years. The improvement shows that more and more customers
are finding the website useful in accessing information.
The MQA also have a customer service programme via the
website where customers can log their queries, complaints
and compliments relating to the level and standard of service
they receive from the MQA. This information is required for
purposes of maintaining our ISO 9001:2000 office accreditation
status as it monitors the turn around time, efficiency and
effectiveness of assistance provided to our customers.
Site Statistics for the Period 01 April 2007 – 31 March 2008
Stakeholder Survey The recommendation emanating from the Customer
Satisfaction Survey conducted in the 2005-2006 financial year
continues to be implemented. A follow up survey is planned for
the second quarter of the new financial year. The MQA staff
members continue to understand and value the importance
of good, professional customer service, subsequent to the
launching of the customer service campaign by the CEO in the
2006-2007 financial year.
Apr
07
May
07
Jun
07
Jul
07
Aug
07
Sep
07
Oct
07
Nov
07
Dec
07
Jan
08
Feb
08
Mar
08
No of Requests
No of Page Requests
54
MINING QUALIFICATIONS AUTHORITY
Brand ManagementThe MQA continued to implement its Corporate Identity
manual to ensure that all company stationery, branding
material, promotional literature and all outgoing messages
through external print are visibly branded.
Apr
07
May
07
Jun
07
Jul
07
Aug
07
Sep
07
Oct
07
Nov
07
Dec
07
Jan
08
Feb
08
Mar
08
Complaints
Requests/Queries
Compliments
25
30
20
15
10
5
0
Num
ber o
f Sub
miss
ions
MQA Customer Feedback
Website Customer Service Feedback for the Period 01 April 2007 – 31 March 2008
Delegate asking a question at the 2008 MQA National Roadshow
Submissions per Month
ANNUAL REPORT 2007/2008
55
M MdingiAccountant
4.7 Finance, Grant Disbursement And Management Information Systems
The financial statements
that follow present the
financial performance,
position, changes in net
assets and cash flows of the
MQA for the year ended 31
March 2008. The following
is a commentary on the
financial statements.
Financial performance
The income statement of the Annual Financial Statements
provides information about the financial performance. Note
2 to the Annual Financial Statements provides further details
in terms of the legislative catergories, viz, adminitration funds,
employer grants funds and discretionary grants funds.
RevenueRevenue continues to increase steadily. This is mainly due to
the stability of employment and salary increases in the mining
industry. Investments in wider instruments with our bankers
resulted in an increase in interest income. Interest received is
allocated to discretionary grants funds.
Mandatory grants expenditureMandatory grants expenditure indicates that 93% of
mandatory grants levy income for the year has been claimed.
This is an improvement compared to 83% for the 2006/07
year.
Discretionary grants expenditureDiscretionary grants expenditure declined by 14% and this
is mainly due to recently introduced controls around grants
disbursements to ensure that grants are paid only for valid
learners and valid training. However, although there is a
decline in discretionary grants expenditure, note 2 to the
AFS indicates that discretionary grants expenditure is actually
more than the discretionary grants revenue from skills
development levies.
Administration expenditureIn terms of administration funds, we have achieved a surplus
of R13 million. This is commendable in that we did not set
out to spend our administration income for unnecessary
purposes simply because we have it available to spend. In
terms of our accounting policy, administration funds surpluses
are ploughed back into discretionary grants in the following
year. As a result there will be more funds available for skills
development initiatives in the next financial year. The extent
of use of consultants is as follows
Consultants used for the period ending 31 March 2008
2005/2006 2006/2007 2007/2008 Variance Comments
R’000 R’000 R’000
Consultants used 47 34 24 -10 Planned reduction in use of consultants as capacity
within the MQA has improved.
Amount R4,170 R1,331 R2,146 R815 The value of the contracts was higher than those of
last year.
Financial position and changes in net assetsDiscretionary reserves increased by 37% as a result of the
increase in revenue and a decline in discretionary grants
expenditure as indicated above. It is important to note
that discretionary grants and projects commitments have
increased by 85% as disclosed in note 21.3. The discretionary
reserves are set aside to meet liabilities that arise out of the
commitments. Inadequate reserves over commitments
would result in technical insolvency.
Cash and cash equivalents have increased by 34% compared to
last year, this is again mainly due to the decline in discretionary
grants disbursements. It is important to note that this increase
in negated by a 30% increase in liabilities that will have to be
settled immediately after the reporting date.
CashflowsIncreases in skills development, receipts and investment
income receipts coupled with payments that remained almost
56
MINING QUALIFICATIONS AUTHORITY
at the same level as last year, resulted in an increase in net
cash inflows.
ProcurementWe have an established Supply Chain Management Unit that
is responsible for Framework for Supply Chain Management,
as prescribed in Section 76(4) C of the PFMA.
We have a supplier database software that enables us to clearly
classify our suppliers into categories in terms of procurement
legislation, rotate suppliers and draw reports on usage of each
category.
In the 2007/08 financial year, amongst others, the following
tenders were awarded:
1. R2,653,050.00 to five companies with 100% HDI
status.
2. R1,000,000.00 to a company with a 60% HDI status
3. R500,000.00 to a state owned institution
4. R490,000.00 to an organized employer organization
5. R340,000.00 to an organized labour orgarnisation
Risk Management and Internal Control SystemsWe continue to monitor and review our internal controls
around the approval and disbursement of grants and we
constantly monitor their adequacy and that they are operating
as designed. We have an established Anonymous Tip Offs line
to reduce the risk of fraud and corruption. To the best of our
knowledge no incidents of fraud and corruption occurred in
the current financial year.
PFMA Compliance schedule
Area Compliance Comments
Listed as a public entity Yes Effective 01 April 2001.
Have an accounting authority Yes Duly constituted Management Board of the MQA is the accounting
authority. Accounting authority to delegate powers in writing to
officials.
Accounting authority to delegate powers in writing to officials Yes Effective 01 April 2003.
Accounting authority must appoint a Chief Financial Officer Yes CFO appointed in February 2003.
Implement effective, efficient and transparent systems of financial
and risk management and internal control.
Yes Effective 01 April 2003.
Develop a system of internal audit Yes Internal auditors appointed. The internal auditors constantly
monitor adherence to regulations.
Establish an audit committee Yes Audit committee established
Implement fair, equitable, transparent, competitive and cost-
effective procurement system.
Yes Part of the Financial Policies and Procedures.
Take effective and appropriate steps to collect all revenue. Yes MQA has no authority over the collection of revenue and is
therefore not in a position to fully comply with this requirement.
A control to monitor levy payments from employers to SARS has
been implemented.
Take effective and appropriate steps to manage available working
capital efficiently.
Yes Part of the Financial Policies and Procedures. Monthly management
reports have been developed to monitor working capital.
Develop measurable, objective and pre-determined targets for
MQA SETA and report quarterly on the achievement thereof
Yes The Memorandum of Understanding/Service Level Agreement
is signed with DoL. Quarterly reports are submitted to DOL
timeously.
Comply with any tax, levy, duty, pension, and audit commitments
as required by legislation.
Yes All statutory requirements have been fully complied with.
Develop effective and appropriate disciplinary procedures for
non-compliance with law and internal controls in the case of
employees who make or permit an irregular or fruitless or wasteful
expenditure
Yes Part of the Financial Policies and Procedures. This was also included
in the HR manual.
Comply with the provisions of the PFMA and any other legislation
applicable to MQA SETA.
Yes No contravention of any provisions of the PFMA found.
ANNUAL REPORT 2007/2008
57
Submit a budget/corporate plan/strategic plan covering all the
affairs of MQA SETA to the Director-General of DoL.
Yes Business plan and budget submitted to DOL before the required
deadline.
Keep full and proper records of the affairs of MQA SETA. Yes Financial systems implemented to keep full and proper records of
all the financial affairs of MQA SETA.
Quarterly reports to be submitted to the Director-General of DoL
on financial matters as well as on compliance with PFMA
Yes Reports in relation to revenue and expenditure submitted to DOL
on a quarterly basis.
Prepare financial statements in accordance with GRAP and the
regulatory requirements.
Yes The financial year of the MQA SETA ended on 31 March 2008 and
financial statements for this period have been prepared according to
GRAP financial reporting framework. This framework is defined as
GRAP and GAAP, including any interpretations of such statements,
where no GRAP standards exist.
PFMA Compliance schedule (continued)
5Section 5: Report of the Audit Committee
section58
ANNUAL REPORT 2007/2008
59
Report of the Audit Committee required by Treasury
Regulations 27.1.7 and 27.1.10 (b) and (c) issued in terms of
the Public Finance Management Act 1 of 1999, as amended
by Act 29 of 1999
We are pleased to present our report for the financial year
ended 31 March 2008.
Audit Committee Members and Attendance
The audit committee consists of the members listed
hereunder. During the period the Audit Committee met
on five occasions and appropriate feedback was provided
to the Board on matters that fell within the mandate of the
Committee.
CHAIRPERSON DESIGNATION CONSTITUENCYNUMBER OF MEETINGS ATTENDED
DATE STARTED
FEES PAID
1. H Qangule ¹ Audit Partner Independent 5 Oct-00 R34 842
2. N. Nkosi ² Consultant Independent 3 Sept-06 R15 200
3. Prof. Y.N. Gordhan ³ Financial Consultant Independent 3 Sep-04 R15 200
4. V. Mabena Skills Development Adviser Board Representative 3 Apr-04
5. J. Ditinti Acting Director: Internal Auditor State 4 Aug-06
6. I. Dladla Assistant Dragline Operator Labour 2 Apr-06
7. T. Tlhabeli HR Training Labour 1 Apr-06
8. I. Tshifura4 Deputy Director State 0 Apr-07
9. D. A. Daya5 Financial Manager Employers 3 Apr-07
10. J Winson (Alternate) Exec Manager: Finance and Admin Employers 2 Feb-04
11. S. Mokgothu (Alternate) NUM Woman’s Regional Secretary Labour 1 Apr-07
12. D. Mooketsi (Alternate) Occupational Health Nursing Labour 3 Apr-06
(1) H Qangule Reappointed as Chairperson with effect from 01 September 2006
(2) N Nkosi New appointment with effect from 01 September 2006
(3) Y Gordhan Reappointed as Independent member with effect from 01 September 2006
(4) I. Tshifura New appointment with effect from 01 April 2007
(5) D.A. Daya New appointment with effect from 01 April 2007
Report of the Audit Committee
Ms Ntombenhle Nkosi, Mr Hale Qangule, Mr Livhu Nengovhela (MQA CEO) and Professor Yaswant Gordhan
60
MINING QUALIFICATIONS AUTHORITY
6section
Audit Committee Responsibility
The Audit Committee reports that it has adopted appropriate
formal terms of reference in terms of its Audit Committee
charter, has regulated its affairs in compliance with this
charter and has discharged all its responsibilities as contained
therein.
Internal Control and Risk Management
The system of controls is designed to provide cost effective
assurance that assets are safeguarded and that liabilities and
working capital are efficiently managed. In line with the
PFMA and the King II Report on Corporate Governance
requirements, Internal Audit provides the Audit Committee
and management with assurance that the internal controls are
adequate and effective to mitigate the risks applicable to the
MQA. This is achieved by means of the risk management
process, as well as the identification of corrective actions and
suggested enhancements to the controls and processes. In
order to enhance the risk management process the MQA
has established a Risk Management and Fraud Prevention
Committee.
In the conduct of its duties, the Audit Committee has amongst
other things, reviewed the following:n The effectiveness of internal control systems.n The effectiveness of the internal audit function.n The risk areas of the entity’s operations covered in the
scope of internal and external audits.n The adequacy, reliability and accuracy of financial
information provided by management for users of such
information.n Accounting and auditing concerns identified as a result of
internal and external audits.n The entity’s compliance with legal and regulatory
provisions.n The activities of the internal audit function, including its
annual work programme, co-ordination with the external
auditors, the reports of significant investigations and the
responses of management to specific recommendations.n The independence and objectivity of both the internal
and external auditors.
The Audit Committee is of the opinion that the internal
accounting controls are operating successfully. These controls
ensure that the financial records are reliable when preparing
the annual financial statements as well as maintaining
accountability for assets and liabilities. This opinion is based
on the information and explanations given by management,
the internal auditors and discussions with the independent
external auditors on the results of their audits.
For the period under review the Audit Committee is satisfied
that it has carried out its mandate in accordance with its
charter, good governance principles and the requirements of
the Public Finance Management Act.
We can report that the key systems of internal controls for the
period under review were adequate and operating effectively.
Management have taken corrective steps to address areas of
weakness identified during the course of the financial year.
Evaluation of Annual Financial Statements
Following our review of the Annual Financial Statements for
the year ended 31 March 2008, we are of the opinion that they
comply in all material respects with the relevant provisions of
the Public Finance Management Act, No 1 1999, as amended,
and South African Statements of Generally Recognised
Accounting Practice, and the South African Statements
of Generally Accepted Accounting Practice, including any
interpretations of such statements, where no GRAP standard
exists, and that they fairly present the results of operations,
cash flow and the financial position of the MQA. We therefore
recommend that the financial statements submitted to the
board be approved.
The Audit Committee concurs with members of the Board
that the adoption of the going concern assertion in the
preparation of the annual financial statements is appropriate.
H Qangule
Chairperson
31 July 2008
6section
Section 6: Report of the Auditor-General
61
62
MINING QUALIFICATIONS AUTHORITY
REPORT ON THE FINANCIAL STATEMENTS
Introduction
1. I have audited the accompanying financial statements
of the Mining Qualifications Authority (MQA) which
comprise the statement of financial position as at
31 March 2008, statement of financial performance,
statement of changes in net assets and cash flow
statement for the year then ended, and a summary of
significant accounting policies and other explanatory
notes, as set out on pages 66 to 99.
Responsibility of the accounting authority for the financial statements
2. The accounting authority is responsible for the
preparation and fair presentation of these financial
statements in accordance with the basis of accounting
determined by the National Treasury, as set out in note
1 to the financial statements and in the manner required
by the Public Finance Management Act, 1999 (Act No. 1
of 1999) (PFMA). This responsibility includes:
n designing, implementing and maintaining internal
control relevant to the preparation and fair
presentation of financial statements that are free
from material misstatement, whether due to fraud
or error;n selecting and applying appropriate accounting
policies;n making accounting estimates that are reasonable in
the circumstances.
Responsibility of the Auditor-General
3. As required by section 188 of the Constitution of the
Republic of South Africa, 1996 read with section 4 of
the Public Audit Act, 2004 (Act No. 25 of 2004) and
section 14(6)(a) of the Skills Development Act, 1998
(Act No. 97 of 1998), my responsibility is to express
an opinion on these financial statements based on my
audit.
4. I conducted my audit in accordance with the International
Standards on Auditing and General Notice 616 of 2008,
issued in Government Gazette No. 31057 of 15 May 2008. Those standards require that I comply with
ethical requirements and plan and perform the audit to
obtain reasonable assurance on whether the financial
statements are free from material misstatement.
5. An audit involves performing procedures to obtain
audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on
the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk
assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit
procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control.
6. An audit also includes evaluating the:
n appropriateness of accounting policies used;n reasonableness of accounting estimates made by
management;n overall presentation of the financial statements.
7. I believe that the audit evidence I have obtained is
sufficient and appropriate to provide a basis for my
audit opinion.
Basis of accounting
8. The public entity’s policy is to prepare financial
statements on the basis of accounting determined by
the National Treasury, as set out in note 1 to the financial
statements.
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION OF THE MINING QUALIFICATIONS AUTHORITY (MQA) FOR THE YEAR ENDED 31 MARCH 2008
ANNUAL REPORT 2007/2008
63
Opinion
9. In my opinion the financial statements present fairly, in
all material respects, the financial position of the Mining
Qualifications Authority (MQA) as at 31 March 2008
and its financial performance and cash flows for the year
then ended, in accordance with the basis of accounting
determined by National Treasury, as set out in note 1 to
the financial statements and in the manner required by
the PFMA.
Emphasis of matter
Without qualifying my audit opinion, I draw attention to the
following matter:
Restatement of corresponding figures
10. As disclosed in note 1 and 22 to annual financial
statements the accounting policy for the recognition
and measurement of skills development levy income has
been amended by National Treasury and the Department
of Labour on the basis of a revised interpretation of the
Skills Development Act, 1998 (Act No. 97 of 1998) and
the Skills Development Levies Act, 2001 (Act No. 9 of
2001). Revenue and related receivables and mandatory
grant expenditure and related payables have been
adjusted accordingly. The corresponding figures for
31 March 2007 have been restated as a result of the
revised interpretation.
OTHER MATTER
Without qualifying my audit opinion, I draw attention to the
following matter that relate to my responsibilities in the audit
of the financial statements:
Matters of governance
11. The PFMA tasks the accounting authority with a
number of responsibilities concerning financial and
risk management and internal control. Fundamental
to achieving this is the implementation of certain key
governance responsibilities, which I have assessed as
follows:
Matter of governance Yes No
Audit committee
• The public entity had an audit committee in operation throughout the financial year. P
• The audit committee operates in accordance with approved, written terms of reference. P
• The audit committee substantially fulfilled its responsibilities for the year, as set out in section 77 of the PFMA and
Treasury Regulation 27.1.8.P
Internal audit
• The public entity had an internal audit function in operation throughout the financial year. P
• The internal audit function operates in terms of an approved internal audit plan.. P
• The internal audit function substantially fulfilled its responsibilities for the year, as set out in Treasury Regulation 27.2. P
Other matters of governance
The annual financial statements were submitted for audit as per the legislated deadlines (section 55 of the PFMA for public
entities)P
The financial statements submitted for audit were not subject to material amendments resulting from the audit. P
No significant difficulties were experienced during the audit concerning delays or the unavailability of expected information
and/or the unavailability of senior management.P
The prior year’s external audit recommendations have been substantially implemented. P
64
MINING QUALIFICATIONS AUTHORITY
7section7.1 Report of the Accounting Authority 667.2 Statement of Financial Performance 697.3 Statement of Financial Position 707.4 Statement of Changes in Net Assets 717.5 Cash Flow Statement 727.6 Notes to the Annual Financial Statements 73
OTHER REPORTING RESPONSIBILITIES
REPORT ON PERFORMANCE INFORMATION
12. I have reviewed the performance information as set out
on pages 16 to 20.
Responsibility of the accounting authority for the performance information
13. The accounting authority has additional responsibilities
as required by section 55(2)(a) of the PFMA to ensure
that the annual report and audited financial statements
fairly present the performance against predetermined
objectives of the public entity.
Responsibility of the Auditor-General
14. I conducted my engagement in accordance with section
13 of the PAA read with General Notice 616 of 2008,
issued in Government Gazette No. 31057 of 15 May 2008.
15. In terms of the foregoing my engagement included
performing procedures of an audit nature to obtain
sufficient appropriate evidence about the performance
information and related systems, processes and
procedures. The procedures selected depend on the
auditor’s judgement.
Audit findings (performance information)
16. I believe that the evidence I have obtained is sufficient
and appropriate to report that no significant findings
have been identified as a result of my review.
APPRECIATION
17. The assistance rendered by the staff of the Mining
Qualifications Authority (MQA) during the audit is
sincerely appreciated.
Pretoria
31 July 2008
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
657section
7.1 Report of the Accounting Authority 667.2 Statement of Financial Performance 697.3 Statement of Financial Position 707.4 Statement of Changes in Net Assets 717.5 Cash Flow Statement 727.6 Notes to the Annual Financial Statements 73
Section 7: Annual Financial Statements
66
MINING QUALIFICATIONS AUTHORITY
Responsibilities of the Accounting Authority
The Accounting Authority (Governing Board) is responsible
for the preparation and presentation of financial statements
that are relevant and reliable, the integrity of the information
contained therein, the maintenance of effective control
measures, compliance with relevant laws and regulations and
the related financial information contained elsewhere in this
annual report.
To meet their responsibilities, the Accounting Authority has
set standards, which require that management implement
effective and efficient systems of financial and risk management
and internal controls, as well as transparent financial reporting
and accounting information systems.
Further responsibilities of the Accounting Authority include:n The management and safeguarding of the assets of
the MQA, as well as the management of revenues,
expenditures and liabilities of the MQA.
n The submission by the MQA of all reports, returns,
notices and other information to Parliament or the
relevant provincial legislature and to the relevant
executive authority or treasury, as may be required
by the Act.
General review of the state of affairs
Total revenue for the MQA for the 2007/08 financial year
including NSF income amounted to R448 million (2006/07
R359 million). The effect was an increase of R89 million. The
increase was mainly due to payroll increases within the mining
industry.
The administration income allocated from levies received was
R52 million for the year (2006/07 R42 million). The actual
administrative expenditure for the year amounted to R38
million (2006/07 R 34 million).
The MQA recorded a surplus of R56 million for the
current financial year (2006/07 R19 million). The MQA
reserves at year end amounts to R212 million (2006/07
R156 million). These reserves are also adequate to meet
future commitments of R153 million. Due to the excess
funds received in this financial year the MQA will increase
it’s funding towards discretionary projects and grants in the
coming year.
During the year the MQA expensed R352 million towards
mandatory and discretionary grants and projects (2006/07
R306 million).
Discretionary grant and project expenditure for the period
under review totalled approximately R109 million (2006/07
R127 million). The following are some of the major allocations
in respect of discretionary grants and projects made to the
Mining and Minerals Sector:
7.1 Report of the Accounting Authority For the year ended 31 March 2008
R’ millions2007/8
R’ millions2006/7
Adult Basic Education (ABET) 11 12New Enterprise Skills Development 3 -Bursary Scheme 24 37Learnerships & Skills Programmes 59 43Graduate Training Programme - 8Learning Material Development Grants - 7Unit Standard Generation Grants 1 2Employment Equity Grant (University) 4 5National Skills Fund - Project 1 -Other Various Projects 6 13
109 127
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
67
Services rendered by the MQA
The MQA is a Public Entity established in terms of the Mine
Health and Safety Act of 1996 and is also registered as a Sector
Education and Training Authority (SETA) for the Mining and
Minerals Sector in terms of the Skills Development Act of
1998.
Capacity
The year under review saw an increase in the number of
staff resignations compared to the previous year. These
vacant positions are currently being filled. The review of the
organisational establishment is currently being considered
and should be finalised in the new financial year.
Utilisation of donor funds
The National Skills Fund (NSF) transferred funds to the
MQA late in the year. These funds are mainly used for the
training of artisans. These funds will be utilised early in the
new financial year in terms of the project plan and service
agreement between the MQA and NSF.
Public Private Partnerships
During the period of review, no formal Public Private
Partnership agreements were concluded.
Corporate governance arrangements
The Accounting Authority is satisfied with the contribution
made to the strategic objectives of its five standing committees
during the period under review.
The MQA Constitution has also been amended to ensure
alignment with the PFMA with particular emphasis on the
fiduciary duties of members of the Accounting Authority.
Change in legislative interpretation
The accounting policy for the recognition and measurement
of skills development levy income has been amended on the
revised interpretation of the Skills Development Act, Act No
97 of 1998 and the Skills Development Levies Act, Act No
9 of 1999, as well as the accounting policy adopted in this
regard during 2006/07.
The effect of this revised interpretation means that SETAs now
recognise revenue on the receipts of funds or the allocation
thereof from the Department of Labour (DoL) whichever
comes first. In the previous financial years SETAs recognised
revenue when employers submitted their EMP201 to SARS. In
this instance revenue received was delayed by approximately
two months.
Due to the change in legislative interpretation the MQA has
had to restate their revenue and expenditure for the previous
financial years.
Discontinued services
During the period under review the Board Standing
Committees were requested to reconsider a number of
projects. The Board approved the discontinuation of the
National Standards of good practice project.
New/proposed activities
The following new projects were introduced during the
2007/08 financial year:
• Institution of Sectoral or Occupational Excellence
(ISOE);
• Apprenticeship programme incorporated with
Learnerships grants.
Allowances for members of the Accounting Authority
The members of the Accounting Authority receive no
allowances from the MQA. Members may however claim
travel expenses incurred as a result of their attendance of
Board and Standing committee meetings. The names and
attendance of members of the Accounting Authority are
covered in the Chairperson’s Report.
68
MINING QUALIFICATIONS AUTHORITY
Events after reporting date
The MQA is not aware of any events that would impact on
the entity after the reporting date.
Going concern
The MQA is dependent on skills development levies from
the Mining and Minerals Sector. Members of the Accounting
Authority are of the opinion that the MQA will be a going
concern in the foreseeable future. For this reason they
continue to adopt a going concern basis in preparing the
annual financial statements.
Responsibility for annual financial statements
The members of the Accounting Authority are responsible
for the preparation of the annual financial statements.
Approval of financial statements
The Annual Financial Statements for the year ended 31 March
2008, set out on pages 69 to 99, have been approved by the
Accounting Authority in terms of section 51(1) (f) of the
Public Finance Management Act (PFMA), No 1 of 1999 (as
amended) on 29 May 2008, and are signed on their behalf
by:
Executive management remuneration
Name & TitleBasic
SalariesPerformance
BonusesNon-Pensionable
AllowancesMedical Aid Allowances
Pension Contribution
Totals2007 - 2008
Totals2006 - 2007
R’000 R’000 R’000 R’000 R’000 R’000 R’000
L. Nengovhela (CEO) 495 40 145 21 79 780 722
Y. Omar (CFO) 479 95 100 17 71 762 711
C. Smit (COO) 457 92 127 17 68 761 690
TOTAL 1431 227 372 55 218 2303 2123
L. Nengovhela
Chief Executive Officer
T. E. Gazi
Chairperson – MQA Board
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
69
2007/08 2006/07Note R’000 R’000
REVENUE Restated
Revenue from non exchange transactions 419 803 341 182 Skills Development Levy: income 3.1 415 653 338 950 Skills Development Levy: penalties and interest 3.2 2 289 2 042 Transfers from other government entities 3.3 - 190 Government Grants and donor funding income recognised 17 1 861 -
Revenue from exchange transactions 27 927 17 773
Investment income 4.1 27 855 17 691 Other income 4.2 72 82
Total revenue 447 730 358 955
EXPENSESEmployer grant and project expenses 5 (351 928) (305 833) Administration expenses 6 (38 433) (34 212) Finance costs 7 ( 9) ( 10) Government Grants and donor funding expenses 17 (1 861) -
Total expenses (392 231) (340 055)
NET SURPLUS FOR THE YEAR 2 55 500 18 900
7.2 Statement of Financial Performance
70
MINING QUALIFICATIONS AUTHORITY
7.3 Statement of Financial Position
2007/08 2006/07Note R’000 R’000
ASSETS Restated Non-current assets
Property, plant and equipment 8.1 2 203 2 436 Intangible assets 8.2 39 59 Non current trade receivables from exchange transactions 9 215 215
2 457 2 710
Current assetsInventories 10 44 66 Trade and other receivables from non-exchange transactions 11 3 966 2 349 Trade and other receivables from exchange transactions 9 668 185 Cash and cash equivalents 12 307 677 229 779
312 355 232 379
TOTAL ASSETS 314 812 235 089
LIABILITIESNon-current liabilities
Finance lease obligations 13 17 37
Current liabilitiesGrants and transfers payable 15 92 797 64 372 Trade and other payables from exchange transactions 16 5 456 8 481 Government Grants and donor funding received in advance 17 2 580 3 799 Current portion of finance lease obligations 13 20 16 Provisions 18 1 950 1 892
102 803 78 560
TOTAL LIABILITIES 102 820 78 597
Net Assets 211 992 156 492
NET ASSETS
Funds and reservesAdministration reserve 2 242 2 495 Employer grant reserve 619 475 Discretionary reserve 209 131 153 522
TOTAL NET ASSETS 211 992 156 492
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
71
Notes Administration reserve
Employer grant reserve
Discretionary reserve
Accumulated surplus
Total
R’000 R’000 R’000 R’000 R’000
Balance at 1 April 2006 as previously stated 9 499 211 165 264 - 174 974 Effect of prior period error (7 095) (30 287) (37 382) Balance at 1 April 2006 as restated 2 404 211 134 977 - 137 592
Surplus for the year as restated 18 900 18 900 Allocation of unapropriated surplus for the year 2 8 443 34 195 (23 738) (18 900) - As previously stated 10 627 32 945 (22 726) (20 846) - Effect of prior period error (2 184) 1 250 (1 012) 1 946 -
(8 352) (33 931) 42 283 - Employer grant reserves transferred to discretionary reserves as previously stated
(11 652) (32 681) 44 333 - -
Effect of prior period error 3 300 (1 250) (2 050) - -
Balance at 31 March 2007 5 979 2 495 475 153 522 - 156 492 Surplus for the year - - - 55,500 55 500 Allocation of unapropriated surplus for the year 2 13 540 17 460 24 500 (55 500) - Administration and employer grant reserves transferred to discretionary reserves
(13 792) (17 316) 31 108 - -
Balance at 31 March 2008 21 2 242 619 209 131 - 211 992
7.4 Statement of Changes in Net Assets
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2007/08 2006/07Note R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating activitiesCash receipts from stakeholders 417 180 355 519
Levies, interest and penalties received 417 141 353 855 Other cash receipts from stakeholders 39 1 664
Cash paid to stakeholders, suppliers and employees (366 797) (364 074) Grants and project payments (328 707) (329 861) Special projects (1 761) ( 965)
Compensation of employees (17 061) (16 550) Payments to suppliers and other (19 268) (16 698)
Cash generated/(utilised) in operations 19 50 383 (8 555) Interest received 4.1 27 535 17 691 Interest paid 7 ( 9) ( 10)
Net cash inflow from operating activities 77 909 9 126
CASH FLOW FROM INVESTING ACTIVITIESPurchase of property, plant and equipment 8 ( 605) ( 896) Proceeds from disposal of property, plant and equipment - 57
Net cash outflow from investing activities ( 605) ( 839)
CASH FLOW FROM FINANCING ACTIVITIESGovernment grants and donor funding 17 & 9 610 3 742 Repayment of finance lease obligation and interest 13 ( 16) ( 15)
Net cash inflow from financing activities 594 3 727
Net increase in cash and cash equivalents 77 898 12 014 Cash and cash equivalents at beginning of year 12 229 779 217 765 Cash and cash equivalents at end of year 12 307 677 229 779
7.5 Cash Flow Statement
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
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1. ACCOUNTING POLICIES
1.1 Basis of preparation
The Annual Financial Statements have been prepared on the historical cost basis, except where adjusted for present/fair values as required by the respective accounting standards.
The financial statements have been prepared in accordance with with the Statements of Generally Accepted Accounting Practice (GAAP), including any interpretations of such Statements issued by the Accounting Practices Board, with the effective Standards of Generally Recognised Accounting Practices (GRAP) issued by the Accounting Standards Board replacing the equivalent of GAAP Statement as follows:
Standard of GRAP Replaced Statement of GAAP
GRAP 1 : Presentation of financial statements AC 101 : Presentation of financial statements
GRAP 2 : Cash flow statements AC 118 : Cash flow statements
GRAP 3 : Accounting policies, changes in accounting estimates and errors AC 103 : Accounting policies, changes in accounting estimates and errors
Currently, the recognition and measurement principles in the above GRAP and GAAP Statements do not differ or result in material differences in items presented and disclosed in the financial statements. The implementation of GRAP 1, 2 and 3 has resulted in the following changes in the presentation of financial statements:
1.1.1 Terminology differences
Standard of GRAP Replaced Statement of GAAPStatement of financial performance Income StatementStatement of financial position Balance sheetStatement of changes in net assets Statement of changes in equityNet assets EquitySurplus / deficit Profit / lossAccumulated surplus / deficit Retained earningsContributions from owners Share capitalDistributions to owners Dividends
1.1.2. The cashflow statement can only be prepared in accordance with the direct method.
1.1.3. Specific information has been presented separately on the statement of financial position such as:
(a) receivables from non exchange transactions, including taxes and transfers
(b) taxes and transfers payable
(c) trade and other payables from non exchange transactions.
1.1.4. Amount and nature of any restrictions on cash balances is required.
Paragraph 11-15 of GRAP 1 has not been implemented due to the fact that the local and international budgeting reporting standard is not effective for this financial year. Although the inclusion of budget information would enhance the usefulness of the financial statements, non disclosure will not affect the objective of the financial statements.
The principal accounting policies adopted in the preparation of these financial statements are set out below and are, in all material respects, consistent with those of the previous year, except as otherwise indicated.
1.2 CurrencyThese financial statements are presented in South African Rands since that is the currency in which the majority of the entity transactions are denominated.
1.3 Revenue1.3.1 Skills Development Levy (SDL) incomeIn terms of section 3(1) and 3(4) of the Skills Development Levies Act (the Levies Act), 1999 (Act No. 9 of 1999), registered member companies of the MQA pay a skills development levy of 1% of the total payroll cost to the South African Revenue Services (SARS), who collects the levies on behalf of the Department of Labour (DoL).Companies with an annual payroll cost of less than R500 000 are exempted in accordance with section 4(b) of the Levies Act, as amended, with effect from 01 August 2005.
80% of skills development levy contribution is transfered to the MQA and 20% to the National Skills Fund (NSF) by the Department of Labour.
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SDL income is set aside in terms of the Skills Development Act, 1998 (Act No. 97 of 1998) as amended and the Skills Development Levy Grant Regulations (Grant Regulations), issued in terms of this act, for the purposes of :
2007/08 2006/07 Administration costs of the MQA 10% 10% Mandatory grants 50% 50% Discretionary grants and projects 20% 20%
80% 80%
In addition to these amounts employers that fail to file their returns and pay skills development levies within the prescribed time limits as set by SARS are charged interest and penalties at rates prescribed by SARS from time to time. The interest and penalties charged are remitted to the Department of Labour, who in turn transfers them to the MQA. The interest and penalties are disclosed separately as Skills Development Levy penalties and interest.
1.3.1.1 Interseta transfersRevenue is adjusted for transfers of employers between Setas that arise due to incorrect allocation to a Seta on registration for Skill Development Levy or changes to their business that result in a need to change Setas. Such adjustments are disclosed separately as inter-seta transfers. The amount of inter-seta adjustments is calculated according to the most recent Standard Operating Procedure as issued by the Department of Labour.Where transfers from other Setas to the MQA occur, the levies transferred are recognised as revenue and allocated between the respective catergories as reflected in 1.3.1 above to maintain its original identity.For transfers from the MQA to other Setas, the levies in the respective catergories are reduced by the amounts transferred or transferable.
RecognitionSkills Development Levy income is recognised when it is probable that future economic benefits will flow to the MQA and these benefits can be measured reliably. This occurs when the Department of Labour (DoL) either makes an allocation or payment to the MQA, whichever occurs first, as required by section 8 of the Skills Development Levies Act, 1999 (Act No.9 of 1999).
This represents a correction of prior period accounting interpretation error, the reasons and effects of which are disclosed in note 22 to the annual financial statements.
Levy contribution from employers below the legislated threshold are not recognised as revenue but as a provision as they represent a present obligation to be refunded to the employers because the employers are exempted from paying skills development levies.
MeasurementSDL income is measured at the fair value of the consideration received or receivable.
1.3.2 Government grants, donor funding income and funds allocated by National Skills Fund for special projects
Conditional government grants and other conditional donor funding received are recorded as deferred income when they become receivable and are then recognised as income on a systematic basis over the period necessary to match the grants with the related costs which they are intended to compensate. Unconditional grants received are recognised when the amounts have been received.
Funds transferred by the National Skills Fund (NSF) are accounted for in the financial statements of the MQA as a liability until the related eligible special project expenses are incurred, when the liability is extinguished and revenue recognised.
Property, plant and equipment acquired from Government grants (NSF) are capitalised, as the MQA controls such assets for the duration of the project. Such assets can however only be disposed of in terms of written agreement with the NSF.
1.3.3 Investment income
Interest income is accrued on a time proportion basis, taking into account the capital invested and the effective interest rate over the period to maturity.
1.4 Grants and project expenditure
In terms of the Grant Regulations, registered employers may recover 50% of levy payments (excluding interest and penalties) in the form of mandatory grants provided they comply with these regulations section of monies received and related matters. In addition registered employers that participate in training initiatives prescribed in the National Skills Development Strategy (2005-2010) can apply for and be granted discretionary grants to supplement their training costs.
1.4.1 Mandatory grantsThe mandatory grant payable and the related expenditure are recognised when the employer has submitted an application for a grant in the prescribed format within the legislated cut-off period and the application has been approved as the payment then becomes probable. The grant is equivalent to 50% of the total levies paid by the employer during the corresponding financial period for the skills planning and annual training report grants (2006/07 : 50%).The liability is measured at the net present value of the expected future cash outflow as determined in accordance with the Act and the grant regulations and is based on the amount of levies received.
7.6 Notes to the Annual Financial Statements
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1.4.1.1 Retrospective amendments by SARSThe MQA calculates and pays mandatory grants to employers based on the information from the Department of Labour as obtained from SARS. Where SARS retrospectively ammends the information on levies collected, it may result in grants that have been paid to certain employers that are in excess of the amount the MQA is permited to have granted to employers. A receivable relating to the overpayment to the employer in earlier periods is raised at the amount of such grant overpayments, net of bad debts and provisions for irrecoverable amounts.The receivable is measured at the net present value of the expected future cash inflow as determined in accordance with the MQA policy on debtors management and is based on the actual overpayments.
1.4.2 Discretionary grants and project expenditureThe MQA may in terms of the Grant Regulations, out of funds set aside for discretionary grants and projects, investment income and any surplus monies from administration allocation and unclaimed mandatory grants, determine and allocate discretionary grants to employers, education and training providers and workers of the employers. The allocations of discretionary grants and projects is dependent on employers submitting the prescribed application, in the prescribed format and within the prescribed cut-off period. The discretionary grant and project expenditure payable and the related expenditure are recognised when the application has been approved and the conditions for grant payment, as set out in the MQA grants policy have been met.The liability is measured at the net present value of the expected future cash outflow as determined in accordance with the Act and the grant regulations and is based on the amount of levies received, investment income and surplus monies from administration allocations and unclaimed mandatory grants.
Project expenditure comprises:- costs that relate directly to the specific contract; - costs that are attributable to contract activity in general and can be allocated to the project; and- such other costs as are specifically chargeable to the MQA under the terms of the contract.
Such costs are allocated using methods that are systematic and rational and are applied consistently to all costs having similar characteristics.
No provision is made for projects approved at year-end, unless the service in terms of the contract has been delivered or the contract is of an onerous nature. Where a project has been approved, but has not been accrued for or provided for, it is disclosed as commitments in the notes to the financial statements.
Discretionary grants and project costs are recognised as expenses in the period in which they are incurred. A receivable is recognised net of a provision for irrecoverable amounts for incentive and other payments made to the extent of expenses not yet incurred.
1.5 Prepayments
The MQA may, in certain instances in contracting with SMMEs and when required by the terms of the contract of a services provider, make advance payments.
1.6 Irregular, fruitless and wasteful expenditure
Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable legislation, including:
- The PFMA,- The Skills Development Act,- The Skills Development Levies Act
Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable care been exercised.
All irregular, fruitless and wasteful expenditure is charged against the respective expenditure class in the reporting period in which they are incurred and disclosed in the notes to the financial statements of the reporting period that it has been identified.
1.7 Property, plant and equipment
Property, plant and equipment (owned and leased) are stated at cost less any subsequent accumulated depreciation and adjusted for any impairments. Depreciation is calculated on the straight-line method to write off the cost of each asset to estimated residual value over its estimated useful life. The following rates are used.
- Computer equipment 2-3 years- Office furniture and fittings 8-10 years- Office equipment 5-6 years- Motor vehicles 4-5 years
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount (i.e. impairment losses are recognised)
The gain or loss on disposal of property, plant and equipment is determined as the difference between the sale proceeds and carrying amount and are taken into account in determining the surplus or deficit.
1.7.1.1 Key accounting judgements
In the application of the MQA’s accounting policies management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on past experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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The estimate and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
1.7.1.2 Key sources of estimation uncertaintyThe following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
The MQA reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period, refer to note 8 for carrying amounts of property, plant and equipment. The MQA is currently established until 31 March 2010 (as a Seta), and in terms of the Act, read together with Government notice No. R1082 of 7 September 1999, the MQA is required to apply to the Minister for a renewal of its certificate of establishment by 1 April 2009.
In the light of the requirement to apply for the renewal of the MQA’s certificate of establishment, management was required to consider how it impacts the period over which assets are expected to be available for use by the MQA. Management determined, consistently with prior years, that the useful lives of assets should not be limited by the MQA’s establshment until March 2010. Managements determination of useful lives also impact the determination of residual values of assets.
The MQA has reviewed the residual values used for the purpose of depreciation calculations in light of the amended definition of residual value. The review did not highlight any requirement for an adjustment to the residual values used in the current or prior periods. Residual values will be reviewed annually in the future.
1.7.2 Intangible AssetsIntangible Assets that meet the recognition criteria are stated in the statement of financial position at amortised cost, being the initial cost price. Amortisation is charged to the Statement of Financial Performance so as to write off the cost of Intangible Assets over their estimated useful lives.
Asset Class Amortisation- Computer Software 1-3 Years
The useful lives of intangible assets are reassessed at the end of each financial year.
1.8 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined on a first-in first-out basis. Any write-down to net realisable value is recognised as an expense in the period that it has been incurred.
1.9 Borrowings and borrowing costs
In terms of section 66(3)(c) of the Public Finance Management Act 1999 as amended, a Public Entity may only through the Minister of Finance borrow money or, in the case of the issue of a guarantee, indemnity or security, only through the Minister of Labour, acting with the concurrence of the Minister of Finance.
In terms of section 32.1.1 of the Treasury Regulations a Public Entity may borrow money for bridging purposes with the approval of the Minister of Finance, subject to certain conditions.
Borrowing costs are recognised as an expense in the period that it has been incurred.
1.10 Leasing
Finance leases Leases as per the Treasury Regulations relates to a contract that transfers significant risks, rewards, rights and obligations incidental to ownership to the lessee is recorded as a purchase of equipment by means of long-term borrowing. All other leases are classified as operating leases.
Finance leases are recognised as assets and liabilities at amounts equal to the lesser of the leasehold property or the present value of minimum lease payments at the inception of the lease.
The discount rate used to calculate the present value of minimum lease payments is the interest rate implicit in the lease or if not practicable to determine, the prime lending rate at the inception of the lease. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability.
Operating leasesThe lease payments of an operating lease are recognised as an expense on a straight-line basis over the lease term unless another systematic basis relates better to the time pattern of benefits expected from the leased asset.orAssets held under finance leases and the corresponding liability are recognised at their fair value at the date of acquisition. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Finance costs, which represent the difference between the total leasing commitments and the fair value of the assets acquired, are charged to the Statement of financial perfomance over the term of the relevant lease so as to produce a constant periodic rate of interest on the remaining balance of the obligations for each accounting period.
When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place.
7.6 Notes to the Annual Financial Statements
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1.11 Retirement benefit costs
The entity operates a defined contribution plan, the assets of which are generally held by third party trustee-administered funds. The plan is funded by payments from the entity and employees.
Payments to the defined contribution benefit plan are charged to the statement of financial performance in the year to which they relate.
Obligations arising out of the entity and employee contributions to the fund are measured on an undiscounted basis unless they fall due wholly after twelve months after the end of the period in which the employees rendered the related services.
1.12 Provisions
Provisions are recognised when the MQA has a present obligation as a result of a past event and it is probable that this will result in an outflow of economic benefits that can be estimated reliably. Long-term provisions are discounted to net present value.
1.12.1 Provision for employee entitlements
The cost of other employee benefits (not recognised as retirement benefits) is recognised during the period in which the employee renders the related service. Employee entitlements are recognised when they accrue to employees. A provision is made for the estimated liability as a result of services rendered by employees up to the reporting date.
Other provisions
Provisions included in the Statement of Financial Position are provisions for leave and perfomance awards. Provisions for leave are based on current salary rates and leave days due at the reporting period. Provisions for perfomance awards are based on estimated perfomance levels and salary rates prevalent at the reporting date.
Termination benefits are recognised only when the payment is made.
No provision has been made for retirement benefits as the MQA does not provide for retirement benefits for its employees.
1.13 Contingent Liabilities
Contingent liabilities are disclosed as commitments when the MQA has a possible obligation that will probably result in an outflow of economic benefits depending on occurance or non-occurrence of a future event.
Disclosed amount in respect of contingent liabilities are measured on the basis of the best estimate, using experience of similar transactions or reports from independent experts.
1.14 Financial Intruments
Recognition
Financial assets and financial liabilities are recognised on the MQA’s statement of financial position when the MQA becomes a party to the contractual provisions of the instrument and the provisions create an obligation to receive or deliver cash.
Financial assets
Investments and loans The following categories of investments are measured at subsequent reporting dates at amortised cost by using the effective interest rate method if they have a fixed maturity, or at cost if there is no fixed maturity: – Loans and receivables originated by the group; – Held-to-maturity investments; – An investment that does not have a quoted market price in an active market and whose fair value cannot be measured reliably.
Investments are recognised and derecognised on a trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as a fair value through profit or loss, which are initially measured at fair value.
Investments other than those listed above are classified as available-for-sale investments or investments held-for-trading and are measured at subsequent reporting dates at fair value, without any deduction for transaction costs that may be incurred on sale or other disposal. Financial assets can be classified into the following specified categories: financial assets as ‘at fair value through profit or loss” (FVTPL), “held to maturity investments”, “available for for sale” financial assets and “loans and receivables”. The classification depends on the nature and purpose of financial assets and is determined at the time of initial recognition.
All financial assets of the MQA are categorised as loans and receivables.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as “loans and receivables”. Loans and receivables are measured at amortized cost using the effective interest method less any impairment. Interest income is recognized by applying the effective interest rate, except for short term receivables where the recognition of interest would be immaterial.
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Effective interest rate method
The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset or, where appropriate, a shorter period.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting period.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the assets carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables where the carrying amount is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in the surplus or deficit.
Cash and cash equivalents are measured at fair value.
Financial liabilities
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
Financial liabilities at FVTPLFinancial liabilities are classified as at FVTPL where the financial liability is either held for trading or is designated at FVTPL..Gains and losses on subsequent measurement
Gains and losses arising from a change in the fair value of financial instruments, other than available-for-sale financial assets, are included in net profit or loss in the period in which it arises. Gains and losses arising from a change in the fair value of available-for-sale financial assets are recognised in equity, until the investment is disposed of or is determined to be impaired, at which time the net profit or loss is included in the net profit or loss for the period.
All financial liabilities of the MQA were classified as other financial liabilities.
Other financial liabilitiesOther financial liabilities are initially measured at fair value net of transaction costs.
Other financial liabilities are subsequently measured at amortised cost, using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate, a shorter period.
1.15 Reserves
Reserves are sub-classified in the statement of changes in net assets between the following:- Administration reserve- Employer grant reserve- Discretionary reserve- Accumulated surplus/deficit
This sub-classification is made based on the restrictions placed on the distribution of monies received in accordance with the Grant Regulations (note 1.3.1) issued from time to time by the Department of Labour in terms of the Skills Development Act, Act No. 97 of 1998 as amended.
Interest and penalties received from SARS as well as interest received on investments are utilised for discretionary grants and projects. Other income received are utilised in accordance with the original source in terms of the above classifications, that is where income is associated with administration activities it is utilised for admistration purposes, whereas where it is associated with project activities it is utilised for discretionary grants and projects purposes.
The items of revenue and expenditure are recognised on the accrual basis of accounting in the annual financial statements. Consequently, the reserves disclosed in the Statement of Changes in Net Assets and movements disclosed in note 2 do not represent cash reserves or fund monies as implied in Grants Regulations issued by the Department of Labour in terms of the Skills Development Act, Act No. 97 of 1998 as amended.
- Administration reserve represents the net book value of Property, Plant and Equipment and intangible Assets.
- Employer grant reserve represents possible mandatory grants claims from newly registered employers that are eligible to submit their mandatory grants claims at year end in terms of the grants regulations.
7.6 Notes to the Annual Financial Statements
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- Discretionary reserve represents the excess of discretionary grants revenue over discretionary and projects expenditure and includes transfers from administration and mandatory grant reserve.
1.16 Related party transactions
Transactions are disclosed as other related party transactions where the Seta has in the normal course of its operations, entered into certain Setas has in the normal course of its operations, entered into certain tranactions with entities either related to the Department of Labour (DoL) or which had a nominated representative serving on the Setas accounting authority.
Transactions are disclosed as other related party transactions where Interseta transactions arise due to the movement of employess from one Seta to another.
1.17 Comparatives
Where necessary, comparative figures have been restated, adjusted or reclassified to achieve fair presentation or to conform to changes in presentation in the current year as explained in note 22. Note 2, 3.1, 3.2, 5, 11, 15, 15.1 and 27 have been appropriately restated.
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2. ALLOCATION OF NET SURPLUS FOR THE YEAR TO RESERVES
2007/08Total per
Statement of financial
performance
Administration reserve
Mandatory skills planning
grant
Discretionary grants and
projects
Special projects
R’000 R’000 R’000 R’000 R’000Total revenue 447 729 51 980 260 004 133 884 1 861
Skills development levy: income 417 942 51 909 260 004 106 030 - Admin levy income (10%) 51 909 51 909 - - - Grant levy income (70%) 363 744 - 260 004 103 741 - Skills development levy: penalties and interest 2 289 - - 2 289 - Donations for special projects 1 861 - - - 1 861 Investment income 27 855 - - 27 855 - Other income 72 72 - - -
Total expenses (392 229) (38 441) (242 544) (109 384) (1 861) Administration expenses (38 433) (38 433) - - - Finance costs ( 8) ( 8) - - - Employer grants and project expenses (353 789) - (242 544) (109 384) (1 861)
Net surplus per Statement of financial perfomance allocated 55 500 13 540 17 460 24 500 -
2006/07Restated
Total per Statement of financial
performance
Administration reserve
Mandatory skills planning
grant
Discretionary grants and
projects
Special projects
R’000 R’000 R’000 R’000 R’000Total revenue 358 954 42 664 212 897 103 393 -
Skills development levy: income 340 992 42 393 212 897 85 701 - Admin levy income (10%) 42 393 42 393 - - - Grant levy income (70%) 296 557 - 212 897 83 659 - Skills development levy: penalties and interest 2 042 - - 2 042 - Investment income 17 691 - - 17 691 - Other income 271 271 - - -
Total expenses (340 055) (34 221) (178 702) (127 131) - Administration expenses (34 212) (34 212) - - - Finance costs ( 10) ( 10) - - - Employer grants and project expenses (305 833) - (178 702) (127 131) -
Net surplus per Statement of financial perfomance allocated 18 900 8 443 34 195 (23 738) -
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
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3. REVENUE FROM NON EXCHANGE TRANSACTIONS
3.1 Skills development levy income2007/08 2006/07
Note R’000 R’000Restated
Levy income: Administration 51 909 42 393 Levies received 51 791 44 000 Levies received from SARS 51 558 43 987 Interseta transfers in 284 13 Interseta transfers out ( 51) - Movement in levies accrued 118 (1 607)
Levy income: Employer Grants 260 004 212 897 Levies received 259 413 220 936 Levies received from SARS 258 248 220 869 Interseta transfers in 1 421 67 Interseta transfers out ( 256) - Movement in levies accrued 590 (8 039)
Levy income: Discretionary Grants 103 741 83 659 Levies received 103 505 86 876 Levies received from SARS 103 039 86 850 Interseta transfers in 568 27 Interseta transfers out ( 102) - Movement in levies accrued 235 (3 217)
415 653 338 950
3.2 Interest and penalties : skills development levy income
Levy interest 1 040 521 Levy penalties 1 250 1 521
2 289 2 042
3.3 Transfers from other government entities
Value added tax - 190
4. REVENUE FROM EXCHANGE TRANSACTIONS
4.1 Investment income 27 855 17 691 Interest received 27,535 17 691 Movement in interest accrued 320 -
4.2 Other incomeReprinting of training certificates 18 2 Insurance recoveries 8 17 SDL recoveries 46 57 Other recoveries - 6
72 82
7.6 Notes to the Annual Financial Statements
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5. EMPLOYER GRANT AND PROJECT EXPENSESNote 2007/08 2006/07
R’000 R’000
Mandatory grants 242 544 178 702 Disbursed 218 470 206 641 Movement in liabilities and accruals 24 074 (27 939)
Discretionary grants 21.3 78 399 77 334 Disbursed 74 864 77 540 Movement in liabilities and accruals 3 535 ( 206)
Project expenditure 21.3 30 985 49 797 Disbursed 35 289 45 680 Movement in provisions and accruals (4 304) 4 117
351 928 305 833
5.1 Direct project costs 28 911 38 369 Service provider costs 1 995 11 428 Administration costs 80 -
30 985 49 797
6. ADMINISTRATION EXPENSES
Depreciation 856 739 Loss on disposal of property, plant and equipment 2 8 Operating lease rentals 1 915 1 639 Buildings 1 748 1 542 Plant, machinery and equipment 167 97 Maintenance, repairs and running costs 377 464 Property and buildings 215 343 Machinery and equipment 162 121 Research and development costs 1 043 982 Advertising, marketing and promotions, communication 2 355 1 958 Entertainment expenses 49 49 Consultancy and service provider fees 2 146 1 331 Legal fees 855 216 Cost of employment 6.1 17 096 16 917 Travel and subsistence 2 251 3 428 Staff training and development 1 061 900 Remuneration to members of the audit committee 73 55 Internal auditor’s remuneration 491 679 External auditor’s remuneration 429 386 Other 7 437 4 458
Printing and Stationery 2 057 2 058 Conference costs 4 858 1 800 Insurance 126 200 Rates & taxes, water & lights & security 317 348 Donations & sponsorships 32 - Sundry items 47 52
38 433 34 212
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
83
6.1. Cost of employment Note 2007/08 2006/07 R’000 R’000
Salaries and wages 15 130 15 074 Basic salaries 9 542 8 918 Performance awards 1 748 2 574 Other non-pensionable allowance 2 669 3 065 Temporary staff 659 160 Leave payments 512 357 Social contributions 1 966 1 843 Medical aid contributions 431 393 Pension contributions: defined contribution plans 1 346 1 264 UIF 80 74 Other salary related costs 109 112
6 17 096 16 917
Average number of employees 67 64
Refer to the report by the Accounting Authority for disclosure concerning the emoluments of members of the accounting authority and the executive management of the MQA.
7. FINANCE COSTS
Interest expense: Obligations under finance leases 8 10 Other interest 1 - Total interest expense 9 10
8.1 PROPERTY, PLANT AND EQUIPMENT
Owned assetsYear ended 31 March 2008
Cost Accumulated depreciation
Closing carrying amount 2007/08
R’000 R’000 R’000Computer equipment 1 653 (1 134) 519 Office furniture and fittings 2 067 (1 022) 1 045 Office equipment 1 259 ( 753) 506 Motor vehicles 384 ( 252) 132 Balance at end of the year 5 363 (3 161) 2 202
Made up as follows:- Owned assets 5 067 (2 933) 2 134 - NSF assets 223 ( 190) 33 - Lease assets - office equipment 74 ( 37) 37
Owned assetsYear ended 31 March 2007
Cost Accumulated depreciation/ impairment
Closing carrying amount 2006/07
R’000 R’000 R’000Computer equipment 1 480 ( 781) 699 Office furniture and fittings 1 922 ( 823) 1 099 Office equipment 1 050 ( 615) 435 Motor vehicles 384 ( 181) 203 Balance at end of the year 4 836 (2 400) 2 436
Made up as follows:- Owned assets 4 539 (2 210) 2 329 - NSF assets 223 ( 167) 56 - Lease assets - office equipment 74 ( 23) 51
7.6 Notes to the Annual Financial Statements
84
MINING QUALIFICATIONS AUTHORITY
Movement summary 2008Carrying amount 2006/7
Additions Disposals Depreciation charge
Accumulated Depreciation on disposals
Carrying amount 2007/08
R’000 R’000 R’000 R’000 R’000 R’000Computer equipment 699 217 ( 44) ( 396) 44 519 Office furniture and fittings 1 099 145 - ( 199) - 1 045 Office equipment 435 244 ( 35) ( 170) 32 506 Motor vehicles 203 - - ( 70) - 132 Balance at end of the year 2 436 606 ( 78) ( 836) 76 2 202
Movement summary 2007Carrying amount 2005/6
Additions Disposals Depreciation charge
Accumulated Depreciation on disposals
Carrying amount 2006/07
R’000 R’000 R’000 R’000 R’000 R’000 Computer equipment 590 440 ( 795) ( 328) 792 699 Office furniture and fittings 1 091 219 ( 32) ( 191) 13 1 099 Office equipment 450 178 ( 168) ( 149) 124 435 Motor vehicles 273 - - ( 70) - 203 Balance at end of the year 2 404 837 ( 995) ( 738) 929 2 436
Gains and losses on disposal of property, plant and equipment are determined by reference to their carrying amount and are taken into account in determining net deficit for the period.
The MQA has reviewed the residual values and useful lives of all the items of property, plant and equipment . The review did not highlight any requirement for adjustments in the current or prior periods.
The impairment of all classes of property, plant & equipment was considered at year end and no impairment adjustments have been taken into account.
There are no restrictions on title of property, plant and equipment and no items have been pledged as security for liabilities except for items classified as finance leases and assets held on behalf of the NSF.
There are no commitments for the acquisition of property, plant and equipment.
8.2 Intangible Asets
Owned Assets
CostAccumulated Amortisation
Closing Carry-ing Amount
2007/08Year Ednded 31 March 2008 R’000 R’000 R’000Computer software 59 (20) 39Balance at end of the year 59 (20) 39
Owned Assets
CostAccumulated Amortisation
Closing Carry-ing Amount
2006/07Year Ednded 31 March 2007 R’000 R’000 R’000Computer software 59 - 59Balance at end of the year 59 - 59
Movement summary 2008 Carrying amount 2006/07
Additions Disposals Depreciation charge
Accumulated Depreciation on disposals
Carrying amount 2007/08
R’000 R’000 R’000 R’000 R’000 R’000Computer software 59 - - ( 20) - 39Balance at end of the year 59 - - ( 20) - 39
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
85
Movement summary 2007 Carrying amount 2005/06
Additions Disposals Depreciation charge
Accumulated Depreciation on disposals
Carrying amount 2006/07
R’000 R’000 R’000 R’000 R’000 R’000Computer software - 59 - - - 59Balance at end of the year - 59 - - - 59
Intangible Assets have been split from Property, Plant and Equipment and is now reflected seperately.
9. TRADE AND OTHER RECEIVABLES FROM EXCHANGE TRANSACTIONS
2007/08 2006/07Note R’000 R’000
Prepayments and AdvancesNon Current Deposits in respect of building 215 215
Current Prepayments 123 102 Deposits 13 1 Staff Advances 33 10 Operating lease payments due 147 72 Interest receivable -MQA 320 - Interest receivable - NSF 32 - Closing balance 668 185
10. INVENTORY
Printing consumable stores 44 66
11. TRADE AND OTHER RECEIVABLES FROM NON - EXCHANGE TRANSACTIONS
Interseta receivables 27 2,875 2,271 Administration 359 284 Employer grants 1 797 1 420 Discretionary grants 719 568
Employer receivables 11.1 675 77 Discretionary receivables 416 -
3 966 2 349 11.1 Employer receivable
Overpayment to employers 1 019 421 Provision for doubtful debts ( 344) ( 343) Net effect of SARS retrospective adjustments on affected employers 675 77
R1,019 million (2006/07:R421,000 was recognised as a receivable relating to actual overpayment of mandatory grants to employers in the reporting period. The MQA recovers such debts by withholding the overpayments from future grant payments. An amount of R344 000 (2006/07:R343 000) was provided for as doubtful debt as the employers are no longer contributing levies to the MQA nor claiming grants. R82 000 was written off as bad debts in the current year and the prior year provision was utilised in the write off.
7.6 Notes to the Annual Financial Statements
86
MINING QUALIFICATIONS AUTHORITY
12. CASH AND CASH EQUIVALENTS2007/08 2006/07 R’000 R’000
Cash at bank and in hand 18 300 26 939 Cash at bank 18 296 26 933 Cash on hand 4 6 Short term investments/instruments 289 376 202 840 Cash and cash equivalents at end of year 307 677 229 779
Included in cash at bank is a current account with a balance of R2.7 million (2006/07: R3.7 million) in respect of NSF funds received in advance. The funds were received from the National Skills Fund for the purposes of the Learnerships and Graduate Development Internship programme. The funds may not be used for any purposes except for this programme.
The Skills Development Act Regulations states that the MQA may, if not otherwise specified by the Public Finance Management Act, invest the moneys in accordance with the investment policy approved by the MQA Accounting Authority
Treasury Regulation 31.3 requires that, unless exempted by the National Treasury, the MQA as a public entity that is listed in Schedule 3A of the Act must invest surplus funds with the Corporation for Public Deposits.
As the MQA was exempted by the National Treasury from the requirement of Treasury Regulation 31.3 to invest surplus funds with the Corporation for Public Deposits, surplus funds were deposited in an institution with an investment grade rating and in line with the investment policy as required by Treasury Regulation 31.3.5.
12.1 BORROWINGS / LOANS
In terms of PFMA section 66(3)(c), public entities may only through the Minister of Finance borrow money or, in the case of the issue of a guarantee, indemnity of security only through the Minister of Labour acting with the concurrence of the Minister of Finance.
In terms of Treasury Regulation 32.1.1, the MQA as a schedule 3A public entity may borrow money for bridging purposes with the approval of the Minister of Finance, subject to certain conditions.
No such borrowings were entered into during the year.
13. FINANCE LEASE OBLIGATIONS2007/08 2006/07R’000 R’000
Non-current finance lease obligation (recoverable after 12 months) 17 37 Current finance lease obligation (recoverable within 12 months) 20 16 Finance lease obligation 37 53
Reconciliation between the total of the minimum lease payments and the present value: Up to 1 Year Future minimum lease payments 25 24 Finance cost (5) (8) Present value 20 16 1 to 5 years Future minimum lease payments 19 43 Finance cost (1) (6) Present value 17 37 Finance lease repayments for the year 16 15
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
87
Assets held under finance leases comprise of a photocopier which has been capitalised and classified as office equipment under Property Plant & Equipment. The lease agreement was entered into in September 2005 for a period of 5 years and the interest rate implicit in the agreement is linked to the prime lending rate.
The interest rate implicit in the agreement, 19.01% (2006/07 : 17.51%) was used as a basis for estimating the finance costs.
14. RETIREMENT BENEFIT OBLIGATIONS
The MQA operates a defined contribution pension fund. Employees contribute 8% and the MQA 16%. The employees future benefits depend on the operating efficiency and investment earnings of the fund. Earnings of the fund were 27% (2006/07:26%).
15. GRANTS AND TRANSFERS PAYABLE2007/08 2006/07
Note R’000 R’000 Restated
Grants payableSkills development grants payable - mandatory 64 489 39 818 Skills development grants payable - discretionary 27 716 23 765 SARS creditors 15.1 522 379 Administration 65 47 Mandatory 326 237 Discretionary 130 95 Interseta payables 27 70 409 Administration 8 51 Mandatory 42 255 Discretionary 19 103
92 797 64 372
15.1 Provision for SARS creditors
Administration provision
Mandatory grants provision
Discretionary grants provision
Total Total
2007/08 R’000
2006/07 R’000
Open carrying amount 47 237 95 379 -
Amounts utilised ( 2) ( 8) ( 3) ( 13) -
Change in estimate 19 97 39 156 379
Closing carrying amount 65 326 131 522 379
The provision for SARS creditors relates to levy contributions received during the year from employers that are exempted from SDL contributions as they are under the legislated threshold.
16. TRADE AND OTHER PAYABLES FROM EXCHANGE TRANSACTIONS
2007/08 2006/07
R’000 R’000
Trade creditors 2 795 1 185
Project creditors 2 113 6 416
Trade creditors accruals 448 878
Payroll creditors - 1
NSF creditors 100 -
5 456 8 481
7.6 Notes to the Annual Financial Statements
88
MINING QUALIFICATIONS AUTHORITY
17. GOVERNMENT GRANTS AND DONOR FUNDING 2007/08 2006/07R’000 R’000
NATIONAL SKILLS FUNDOpening balance 3 799 1 021 Received during the year 642 3 742 Restated balance 3 799 1 021 Draw downs and interest received 642 3 742 NSF funding received 264 3 742 Interest received 378 - Utilised and recognised as revenue-conditions met (1 861) - Bursaries & training (1 861) - Unused bursary and training funds reimbursement to NSF - ( 965) Closing balance 2 580 3 799
During the current year R264 000 (2005/6 : R3,742 million) was received from the National Skills Fund in respect of Learnerships and Graduate Development and Internship programme (Prior years : University bursary scheme). At year end, R2,580 million (2005/6:R3,799 million) continues to be accounted for as a liability until conditions for recognition as revenue have been met.
18. PROVISIONS
Employee leave provision
R’000
Employee Entitlements
R’000
2007/08TOTALS
R’000
2006/07TOTALS
R’000Open carrying amount 882 1 010 1 892 1 514 Amounts utilised ( 282) ( 998) (1 280) ( 964) Change in estimate 511 827 1 338 1 342 Closing carrying amount 1 111 839 1 950 1 892
19. RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO NET (DEFICIT)/SURPLUS
2007/08 2006/07Note R’000 R’000
Restated
Net surplus as per statement of financial performance 55 500 18 900 Adjusted for non-cash items: Depreciation 856 739
Loss on disposal of property, plant and equipment 2 8 Bad debts written off 84 - Allowance for doubtful debts 1 -
Increase in provisions 58 378 Adjusted for items separately disclosed
Investment income 4.1 (27 855) (17 691) Finance costs 7 9 10 Movement in special project funding (1 761) ( 965)
Adjusted for working capital changes: Decrease/(increase) in inventory 10 22 ( 66)
(Increase)/decrease in receivables 9 & 11 (1 832) 14 932
Increase/(decrease) in payables 15 & 16 25 299 (24 800) Cash generated (utilised) in operations 50 383 (8 555)
20. CONTINGENCIES
In terms of the PFMA, all surplus funds as at year-end may be forfeited to National Treasury. The MQA has applied to National Treasury for exemption from the forfeiture of funds based on existing commitments in respect of Learnership agreements, ABET training contracts, Bursary agreements, Universities Employment Equity grants that run over several years.
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
89
21. COMMITMENTS
21.1 Administration reserve
A balance of R2,242 million (2006/07 : R2 495) has been set aside in terms of the accounting policy as follows.
2007/08 2006/07Note R’000 R’000
Net assets 8 2,242 2,495Total Admin Reserve 2,242 2,495
21.2 Mandatory grant reserve
A balance of R619 000 (2006/07 : R475 000) has been set aside in terms of the accounting policy.
21.3 Discretionary reserve
Of the balance of R209,131 million (2006/07 : R153,522 million) available in the discretionary reserve at the end of March 2008, R153,328 million (2006/07 : R93,288 million) has been approved and allocated for future projects and skills priorities as set out below. Amounts for expenses that have already been contracted or incurred, and therefore included in grant expenses in the statement of financial performance, are also indicated.
7.6 Notes to the Annual Financial Statements
90
MINING QUALIFICATIONS AUTHORITY
COMMITMENTS
Opening balance 2006/7
Reallocations approved by Accounting Authority
Utilised Opening balance 2007/08
Reallocations approved by Accounting Authority
Utilised TOTAL
R’000 R’000 R’000 R’000 R’000 R’000 R’000
TOTAL COMMITMENTS NSDS 2 128,947 79,425 (115,084) 93,288 166,100 (106,184) 153,205
OBJECTIVE 1: 2,494 250 (2,744) - 2,008 (2,009) (1)
Indicator 1.1 None - - - - - - -
Indicator 1.2 Levy grant participation improvement 190 10 (200) - 9 (10) -
Small scale mining - 1,500 (1,500) - 1,501 (1,501) -
Skills committee training 1,197 (1,197) - - - - -
Capacity building- skills committee 77 (77) - - - - -
Critical skills research - 263 (263) - - - -
SMME SDF support 1,030 (249) (781) - 498 (498) -
OBJECTIVE 2: 29,715 81,043 (55,761) 54,997 108,932 (70,614) 93,316
Indicator 2.1 None - - - - - - -
Indicator 2.2 Provider accreditation 5,491 (5,491) - - - - -
SMME capacity building-Quality assurance 270 (270) - - - - -
Indicator 2.3 None - - - - - - -
Indicator 2.4 Investors in people 1,025 (1,025) - - - - -
Indicator 2.5 Ex- miners skills development - 1,000 (1,000) - 1,000 (900) 100
Indicator 2.6 None - - - - - - -
Indicator 2.7 ABET grants. 19,830 19,313 (12,216) 26,927 (3,441) (10,001) 13,485
ABET Practitioner Learnerships (NQF4 and 5) - - - - 929 (930) -
Indicator 2.8 Learnerships and Skills Programmes grants 3,099 57,936 (42,545) 18,490 110,244 (58,442) 70,292
NSF co-projects - Learnerships & apprenticeships - 9,580 - 9,580 - (140) 9,440
ISO Grant (1) & ISO Grant (2) - - - - 200 (200) -
OBJECTIVE 3: 32 1,966 (1,998) - 2,470 (470) 2,000
Indicator 3.1 None - - - - - - -
Indicator 3.2 Beneficiation initiatives identification & skills development - 998 (998) - 2,500 (500) 2,000
Jewelery manufacture skills promotion 32 (32) - - - - -
CLAS subsector skills development - 1,000 (1,000) - (30) 30 -
Indicator 3.3 None - - - - - - -
OBJECTIVE 4: 62,241 17,279 (48,789) 30,731 48,192 (28,593) 50,331
Indicator 4.1 Executive preparatory programme (EPP) 13,069 (11,127) (1,942) - - - -
Graduate Development Programme (GDP). 9,428 (1,892) (7,536) - 1,386 (329) 1,057
ESDLE learnerships 8,000 (8,000) - - - - -
National Skills Funding co-projects - GDP - 960 - 960 167 (1,127) -
Indicator 4.2 MQA HET Bursary scheme & Practical Training 31,744 24,947 (37,268) 19,423 53,388 (24,196) 48,615
Indicator 4.3 New venture creation project (NVC) - 12,391 (2,043) 10,348 (6,749) (2,940) 660
OBJECTIVE 5: 34,465 (21,113) (5,792) 7,560 4,498 (4,499) 7,559
Indicator 5.1 Universities Employment Equity grant 32,404 (19,815) (5,029) 7,560 3,901 (3,902) 7,559
FET Support (2) 2,061 (1,298) (763) - 597 (597) -
Indicator 5.2 None - - - - - - -
Indicator 5.3 None - - - - - - -
Indicator 5.4 None - - - - - - -
OTHER LEGISLATIVE COMMITMENTS 36,790 (24,743) (12,047) - 3,322 (3,200) 123
SAQA Act NQF Unit standards and qualifications registration 111 612 (723) - 550 (550) -
Mine health & safety act Standard setting grant 9,116 (7,269) (1,847) - 1,205 (1,205) -
Skills Development Act Learning Materials development grant 12,079 (4,581) (7,498) - (82) 82 -
SAQA Act Quality Management System (ISO) grant 428 732 (1,160) - - - -
SAQA Act Assessor & Moderator Registration 2,792 (1,973) (819) - 350 (350) -
SAQA Act PDA Software for Accredited Training Providers 9,600 (9,600) - - 300 (243) 57
SAQA Act ETD practitioners 500 (500) - - - -
Mine health & safety act NUM Training grant 300 (300) - - - -
Mine health & safety act Women in Mining Support 1,864 (1,864) - - 1,000 (934) 66
TOTAL COMMITMENTS 165,737 54,682 (127,131) 93,288 169,422 (109,384) 153,328
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
91
21.4 Operating Leases
Total of future minimum lease payments under non-cancellable leases:2007/08 2006/07R’000 R’000
Not later than one year 1,633 1,499 Later than one year and not later than five years 2,235 3,870
3,868 5,369
The operating lease relates to the building premises; 4th and 5th floor 74-78 Marshall Street used for office accommodation. The lease agreement entered into effective 1 July 2004 and renegotiated on 1 July 2005 will be operational for a period of five years, expiring on 30 June 2010. No provision was made for an option to renew the lease on expiry. The rental payments escalate annually on 1 July by 9%.
(ii) Minimum lease payments disclosed is misstated:
The amount of future minimum lease payments to be disclosed should be the actual cash payable and not the smooth lined expenditure. From review of disclosure note 21.4 it was identified that MQA disclosed the calculated smooth lined amount and not the actual cash amounts payable. The following differences exist:
Current YearAmount per
AFSCash Payable Difference
Future minimum lease payments (R) (R) (R)Not later than 1 year 1 748 144,40 1 633 497,33 (114 647,07)Later than 1 year not later than 5 years 2 185 180,50 2 235 022,20 49 841,70Later than 5 years - - -Total 3 933 324,90 3 868 519,53 (64 805,37)
2006/07Amount per
AFSCash Payable Difference
Future minimum lease payments (R) (R) (R)Not later than 1 year 1 748 144,40 1 498 622,42 (249 521,98)Later than 1 year not later than 5 years 3 933 324,90 3 869 522,15 (64 802,75)Later than 5 years - - -Total 5 681 469,30 5 367 144,57 (314 324,73)
22. PRIOR PERIOD ERROR
Background on prior period errorThe accounting policy for the recognition and measurement of skills development levy income has been amended on the basis of a revised interpretation of the Skills Development Act, Act No 97 of 1998 and the Skills Development Levies Act, Act No 9 of 1999, as well as the accounting policy adopted in this regard during the 2006/07 financial year.
The interpretation on which the old accounting policy was based on the premise that the skills development levies accrued to the MQA in the payroll month in which the employers were liable to file SDL returns and pay the levies to SARS. The employers do not pay SDL levies directly to the MQA but to SARS that collects the levies on behalf of the Department of Labour (DoL), a government department. SARS deposits the monies into the National Revenue Fund and provides schedules of SDL collected on behalf of MQA to DoL. DoL provides these schedules to the MQA and withdraws the funds in respect of these collection from the National Revenue Fund and remits them to the MQA. It then takes two months for the levies collected to be deposited to the MQA from the last day the employers are required by law to pay the levies to SARS.
The effect of this was that the levy schedules for the last 2 months of the financial year, which under the old interpretation were deemed to accrue to the MQA on payment by the employers to SARS, were not yet received by the MQA at the end of the reporting date and were thus accrued for based on levy schedules received from DoL subsequent to the reporting period as well as other estimates for SARS retrospective amendments.
The revised interpretation that resulted in the prior period error is based on the premise that revenue from the collection of Skills Development Levies becomes due and payable to the MQA when the Department of Labour (DoL) provides the MQA with a schedule of skills development levy payments or makes payments to the MQA, whichever event comes first.
7.6 Notes to the Annual Financial Statements
92
MINING QUALIFICATIONS AUTHORITY
22. PRIOR PERIOD ERROR (Continued)
The overall effect is that revenue amounts received from DoL in the first two months of the 2007/08 financial year were previously accrued for and recognised in the 2006/07 financial year (receipts of the first two months of 2006/07 financial year were recognised in the 2005/06), the receipts referred to are now recognised in the financial year in which they are received, and, similarly, approved mandatory grants relating to the receipts were previously recognised in the year the revenue was accrued for, they are now recognised in the year the revenue is received.
The amounts disclosed in the annual financial statements for 2007/08 have been arrived at based on the revised interpretation and amounts disclosed in the 2006/07 have been restated to correct the error, The cumulative impact from the 2000/01 financial year up to the 2005/06 have been applied to the reserves of the 2005/06 financial year as presented in the statement of changes in net assets, in accordance with GRAP 3.
Impact of prior period adjustment (change in accounting interpretation) R’000
Decrease in revenue (57,699)Decrease in mandatory grants expenditure 20,317 Decrease in opening discretionary grants reserves at 01 April 2006 (37,382)
Decrease in revenue from non exhange transactions (19,464)Decrease in grants and project expenses 16,568 Decrease in surplus 2006/07 (2,896)
Decrease in skills development levy debtors for 2006/07 (78,380)
Decrease in skills development grants payable - mandatory 2006/07 38,102
23 MATERIAL LOSSES THROUGH CRIMINAL CONDUCT, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE
To the best of our knowledge, no material losses through criminal conduct, or irregular, fruitless and wasteful expenditure were incurred during the year ended 31 March 2008 except as indicated under the relevant heading below.
Material losses through criminal conduct:
None
Irregular expenditure for current year
None
Irregular expenditure relating to prior year
None
Fruitless and wasteful expenditure
None
24 EVENTS AFTER REPORTING DATE
None
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
93
25 FINANCIAL INSTRUMENTS
In the course of its operations, the MQA is exposed to interest rate, credit, liquidity and market risk. The MQA has developed a comprehensive risk strategy in order to monitor and control these risks. The risk management process relating to each of these risks is discussed under the headings below.
The MQA’s exposure to cash flow interest rate risk and the effective interest rates on the financial instruments at reporting date are as follows
Floating rate Fixed Rate Non-interest bearing TOTALR’000Amount
R’000Effective interest
rate
Amount R’000
Weighted average effective interest
rate %
Weighted average
period for which the
rate is fixed in years
Amount R’000
Weighted average
period until maturity in
years
Year ended 31 March 2008 Assets
Cash 307 672 10% 4 - 307 677 Accounts receivable - - - - 882 1 year 882
Total financial assets 307 672 10% - - - 886 308 559 Liabilities
Accounts payable ( 37) (5 456) 0,8 years (5 493) Total financial liabilities ( 37) - - - - (5 456) (5 493)
307 636 (4 570) 303 066
Year ended 31 March 2007 Assets -
Cash 229 773 9.25% 6 229 779 Accounts receivable - - - - - 400 400
Total financial assets 229 773 9.25% - - - 406 230 179 Liabilities
Accounts payable ( 53) (8 481) 0,8 years (8 534) Total financial liabilities ( 53) - - - - (8 481) - (8 534)
Prepayments & advances ( 106) - - - - (16 962) 0,8 years (17 069) 229 720 - (8 075) 221 645
Credit riskFinancial assets, which potentially subject the SETA to the risk of non performance by counter parties and thereby subject to credit concentrations of credit risk, consist mainly of cash and cash equivalents, investments and accounts receivable.
The MQA limits its counter-party exposure by only dealing with well established financial institution approved by the National Treasury. The MQA’s exposure is continuously monitored by the Accounting Authority.
Credit risk with respect to levy paying employers is limited due to the nature of the income received. The MQA’s concentration of credit risk is limited to the industry (mining) in which it operates. No events occurred in the mining industry that may have an impact on the accounts receivable that has not been adequately provided for.
7.6 Notes to the Annual Financial Statements
94
MINING QUALIFICATIONS AUTHORITY
Ageing of trade and other receivables from non exchange transactions
2007/08 2006/07Gross Impairment Gross Impairment
Not past due - - - -Past due 0-30 days 2 875 - 2 271 -Past due 31-120 days 1 091 - 77 -More than 1 year - - - -
Cash and cash equivalents2007/08 2006/07
Gross Impairment Gross ImpairmentNot past due 307 677 - 229 779 -Past due 0-30 days - - - -Past due 31-120 days - - - -More than 1 year - - - -
Liquidity riskThe MQA manages liquidity risk through proper management of working capital, capital expenditure, long term cash projections and monitoring of actual vs. forecasted cashflows and its cash management policy. Adequate reserves and liquid resources are also maintained.
2007/08Carrying Amount
Contractual Cash Flows
6 months or less
6-12 months 1-2 years More than 2 years
Trade and other Payables from exchange transactions
(5 456) (5 456) (5 456) - - -
2006/07Carrying Amount
Contractual Cash Flows
6 months or less
6-12 months 1-2 years More than 2 years
Trade and other Payables from exchange transactions
(8 481) (8 481) (8 481) - - -
Market riskThe MQA is exposed to fluctuations in the employment market for example sudden increases in unemployment and changes in the wage rates. No significant events occurred during the year that the MQA are aware of except for the impact of the country’s electricity crisis that may result in the shrinking of employment and a reduction is skills development levy income in the future.
Fair valuesThe MQA’s financial instruments consist mainly of cash and cash equivalents, trade and other receivables, and accounts and other payables. No financial instruments were carried at an amount in excess of its fair value and fair values could be reliably measured for all financial instruments.
Cash and cash equivalentsCash and cash equivalents comprise cash held by the MQA and short term bank deposits with an original maturity of less than 1 month. The carrying amount of these assets approximates their fair value.
Accounts receivableThe carrying amount of accounts receivable, net of allowance for bad debt, approximates fair value due to the relatively short-term maturity of these financial assets.
InvestmentsThe fair value of debt securities is determined using the discounted cash flow method (only if applicable). The fair value of publicly traded investments is based on quoted market prices for those investments.
BorrowingsThe fair value of interest-bearing borrowings is based on the quoted market price for the same or similar issues or on the current rates available for debt with the same maturity profile and effective interest rate with similar cash flows (only if applicable). The fair value of interest-bearing borrowings with variable interest rates approximates their carrying amounts.
Accounts payableThe carrying amount of accounts payable approximates fair value due to the relatively short-term maturity of these financial liabilities.
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
95
26 NEW ACCOUNTING PRONOUNCEMENTS
At the date of authorisation of these financial statements there are Standards and Interpretations in issue but not yet effective. These include the following Standards and Interpretations that are applicable to the MQA and may have an impact on future financial statements.
Effective date, commencing on
or afterGRAP 4 The Effects of changes in Foreign Exchange Rates ‘01 April 2009GRAP 5 Borrowing Costs ‘01 April 2009GRAP 6 Consolidated and Separate Financial Statements ‘01 April 2009GRAP 7 Investments in Associate ‘01 April 2009GRAP 8 Interest in Joint Ventures ‘01 April 2009GRAP 9 Revenue from exchange transactions ‘01 April 2009GRAP 10 Financial Reporting in Hyperinflationary Economies ‘01 April 2009GRAP 11 Construction Contracts ‘01 April 2009GRAP 12 Inventories ‘01 April 2009GRAP 13 Leases ‘01 April 2009GRAP 14 Events after the reporting date ‘01 April 2009GRAP 17 Property, plant and equipment ‘01 April 2009GRAP 18 Segment Reporting ‘01 April 2009GRAP 19 Provisions, Contingent Liabilities and Contingent Assets ‘01 April 2009GRAP 23 Revenue from Non-exchange Transactions (Taxes and Transfers) ‘01 April 2009GRAP 24 Presentation of Budget Information in Financial Statements ‘01 April 2009GRAP 100 Non current assets held for sale and discontinued operations ‘01 April 2009GRAP 101 Agriculture ‘01 April 2009GRAP 102 Intangible assets ‘01 April 2009
7.6 Notes to the Annual Financial Statements
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MINING QUALIFICATIONS AUTHORITY
The MQA shall apply Standards of GRAP for annual financial statements covering periods beginning on or after a date to be determined by the Minister of Finance in a regulation to be published in accordance with section 91(1)(b) of the PFMA. This date has not yet been published as at the date of this set of financial statements.
GRAP 4 : The Effects of changes in Foreign Exchange RatesThe Standard prescribes how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency in instances where it has transactions in foreign currency, has foreign operation or receives foreign donor funding. The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements. It is not expected that this Standard will significantly impact future disclosures due to the legislative limitations on its operations and limited volume of foreign transactions that the MQA is expected to account for.
GRAP 5 : Borrowing costsThis Standard prescribes the accounting treatment for borrowing costs and generally requires an entity to capitalise borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. The Standard also permits, the expensing of borrowing costs where it is inappropriate to capitalise borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. Other borrowing costs are recognised as an expense. It is not expected that this Standard will significantly impact future disclosure due to the limited nature and volume of qualifying assets that the MQA is expected to account for.
GRAP 6 : Consolidated and Separate Financial StatementsThe Standard prescribes the circumstances in which consolidated and separate financial statements are to be prepared and the information to be included in those financial statements so that the consolidated financial statements reflect the financial performance, financial position and cash flows of an economic entity as a single entity. It is not expected that the Standard will significantly impact future disclosures due to the nature of the entity and limited chances that it will control other entities.
GRAP 7 : Investments in AssociateThis Standard prescribes the accounting treatment for investments in associates where the investment in the associate leads to the holding of an ownership interest in the form of a shareholding or other formal net asset structure. This Standard generally requires that investments in associates should be accounted for in consolidated financial statements of the investor by using the equity method only when an investor has significant influence in participating in the financial and operating policies of the associate. The Standard prescribes the circumstances in which investors should use the equity method, how the equity method is to be applied and requires certain disclosures in respect of investments in associates. It not expected that this Standard will significantly impact future disclosures due to the legislative limits on how it should invest its funds.
GRAP 8: Interest in Joint VenturesThe Standard prescribes the accounting treatment of jointly controlled operations, jointly controlled assets and jointly controlled entities and provides alternatives for the recognition of interests in jointly controlled entities. It also sets out the disclosure requirements of interests in jointly controlled entities. The Standard requires an entity to recognise interests in a jointly controlled entity by using either the proportionate consolidation or the equity method. The Standard also stipulates the requirements to recognise gains or losses arising from a venturer contributing or selling or purchasing of assets to/from a joint venture. It is not expected that this Standard will significantly impact future disclosures due to the limited nature and volume of joint venture that the MQA may into.
GRAP 9 : Revenue from exhange transactionsThe Standard provide additional South African public sector specific examples of revenue transactions, however, it does not significantly differ from IAS 29 (AC111) - Revenue. It is not expected that this Standard will significantly impact future disclosures due to the limited nature and volume of exchange transactions for which the MQA is expected to account for.
GRAP 10 : Financial Reporting in Hyperinflationary EconomiesThe Standard applies to entities that operate in hyperinflationary economies and gives examples of indicators for a hyperinflationary economy. The Standard prescribes that entities whose functional currencies are currencies of a hyperinflationary economy shall state their Financial Statement at measuring unit prevailing at the reporting date and restate the comparatives at measuring unit prevalent at the reporting date. It is not expected that this Standard will significantly impact future disclosures as there is currently no reason to beleive that the economy will be hyperinflationary in the near future.
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
97
GRAP 11 : Construction ContractsThe Standard prescribes the accounting treatment of costs and revenue associated with construction contracts. It is not expected that the Standard will significantly impact future disclosures due to the limited nature and volume of contruction contracts transaction that the MQA is expected to account for.
GRAP 12 : InventoriesThe Standard provide additional guidance on the recognition and the initial measurement of inventories, including recognising inventories acquired at no cost, or for nominal consideration, at fair value as at the date of acquisition. It is not expected that this Standard will significantly impact future disclosures due to the limited nature and volume of inventory for which the MQA is expected to account for.
GRAP 13 : LeasesThe standard clarifies that the leases standard should still be applied even where legislation may prohibit an entity from entering into certain types of lease agreements. It further adds an additional requirement to disclose the depreciation and finance charge relating to the leased asset under accounted for as a finance lease by the lessee.
GRAP 14 ; Events after the reporting dateThe Standard prescribes when an entity should adjust its financial statements for events after the reporting date and the disclosures that an entity should give about the date when the financial statements were authorised for issue and about events after the reporting date. The Standard also requires that an entity should not prepare its financial statements on a going concern basis if events after the reporting date indicate that the going concern assumption is not appropriate. It is not expected that the Standard will significantly impact future disclosures due to its similarity to IPSAS 14 & IAS 10 - Events after the Reporting Date except for some terminology changes.
GRAP 17 : Property, plant and equipmentOn initial application, the Standard requires that assets which were acquired at no cost, or for a nominal cost, are accounted for at their fair values at at the date of acquisition. This treatment is different to the current treatment which accounts for such assets at cost. We do not expect this to significantly impact the carrying value of assets.
GRAP 18 : Segment ReportingThe Standard establishes principles for reporting financial informtion by segments. It is not expected that the standard will significantly impact future disclosure due to the limited nature and volume of transactions for which the MQA is expected to account for.
GRAP 23 : Revenue from Non-exchange Transactions (Taxes and Transfers)The Standard prescribes requirements for the financial reporting of revenue arising from non-exchange transactions, other than non-exchange transactions that give rise to an entity combination. The Standard deals with issues that need to be considered in recognising and measuring revenue from non-exchange transactions, including the identification of contributions from owners. It is not expected that the the standard will significantly impact future disclosures as current practice is within the requirements of the standard.
GRAP 24 : Presentation of Budget Information in Financial StatementsThe Standard prescribes the presentation of a comparison of budget and actual amounts in the financial statements of entities that are publicly accountable for the use of their funds. The presentation may be in the form of additional financial statement or additional budget columns in their financial statements. The standard will significantly impact future disclosures as budget information will be presented, compared with actuals and explanations of material differences will be made.
GRAP 100 : Non-Current Assets Held for Sale and Discontinued OperationsThe Standard provides public sector examples and refer to non-cash generating assets that are relevant to the public sector, however, it does not significantly differ from IFRS 5 - Non-Current Assets Held for Sale and Discontinued Operations. It is not expected that this Standard will significantly impact future disclosure due to the limited nature and volume of such transactions for which the MQA is expected to account for.
GRAP 101 : AgricultureThe Standard prescribes the accounting treatment, financial statement presentation and disclosures related to agricultural activity. It is not expected that the standard will significantly impact future disclosure due to the limited nature and volume of such transactions which the MQA is expected to account for.
7.6 Notes to the Annual Financial Statements
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MINING QUALIFICATIONS AUTHORITY
GRAP 102 : Intangible assetsThe Standard is drawn primarily from the International Accounting Standard on Intangible Assets (IAS 38). The Standard provide additional public sector examples and also expands the identifiability criterion in the definition of an intangible asset to include contractual rights arising from binding arrangements, and to exclude rights granted by statute. The Standard will aslo require, where an intangible asset is acquired at no cost or for a nominal consideration, that its cost is recorded as its fair value as at the date it is acquired.Guidance on web site costs, together with an appendix to illustrate the relevant accounting principles has been included in this Standard from SIC Interpretation 32 - Intangible Assets - Web site costs.
27 RELATED PARTY TRANSACTIONS
Transactions with other SETAs
Interseta transactions and balances arise due to the movement of employers from one SETA to another. No other transactions occurred during the year with other SETAs.
The balances at year-end included in receivables and payables are:Note Amount
receivable/ (payable) 2007/08 R’000
Transfers in/(out)
during the year 2007/08 R’000
Amount receivable/ (payable) 2006/07 R’000
Transfers in/(out) during
the year 2006/07 R’000
Receivables 11 2 875 2 878 2 271 2 377 CETA - - 678 678 CHIETA - - 173 173 FASSET 216 216 10 116 SERVICES SETA 2 659 2 661 1 400 1 400 W&R SETA - - 11 11 MAPPPSETA - 1 - -
Payables 15 ( 70) ( 70) ( 409) ( 409) CETA - - ( 30) ( 30) ESETA - - ( 23) ( 23) ETDPSETA - - ( 4) ( 4) FASSET - - ( 11) ( 11) ISETA - - ( 3) ( 3) MAPPPSETA - - ( 19) ( 19) MERSETA ( 70) ( 70) ( 119) ( 119) SERVICES SETA - - ( 11) ( 11) TETA - - ( 3) ( 3) THETA - - ( 11) ( 11) W&R SETA - - ( 176) ( 176)
Total 2 805 2 808 1 862 1 968
7.6 Notes to the Annual Financial Statements
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008
99
Transactions with employer companies represented at the MQA Board
- Board members do not receive allowances for attending Board Meetings - Board members may claim travel expenses incurred as a result of attendance of MQA meetings - The companies listed below contribute their levies under the same legislative provisions applicable to all MQA registered employers - The companies claim their grants and their grants approvals are based on the same legislative and MQA approval processes applicable to all employers
that claim grants from the MQA. - The grant amounts paid to these companies are based on the same legislative and MQA grant amounts applicable to all employers that claim grants from
the MQA and are paid on the same terms as are applicable to all other MQA registered employers.
Board member Company represented Amount Received 2007/08 R’000
Amount Paid
2007/08 R’000
Amount Payable 2007/08 R’000
Amount Receivable
2007/08 R’000
A. Teteme, E Tantsi & E Majadibodu, A Tshangase National Union of Mineworkers - - V. Mabena Chamber of Mines 228 4,185 13 G.J. Brokenshire Anglo Gold Ashanti 27,058 24,989 2,122 J. Mathebula Harmony Gold Mine 33,364 36,116 2,980 2 A.G.W. Knock Anglo Platinum 53,691 35,103 1,747 P. Ngqeleni Virgile Mining Contractors - -
114,342 100,393 6,862 2
Board member Company represented Amount Received 2006/07 R’000
Amount Paid
2006/07 R’000
Amount Payable 2006/07 R’000
Amount Receivable
2006/07R’000
J. Nkosi, A Teteme & E Majadibodu National Union of Mineworkers - 458 - - V. Mabena, S Carthy Chamber of Mines 1,602 2,982 777 - G.J. Brokenshire Anglo Gold Ashanti 22,731 29,693 5,685 - J. Mathebula Harmony Gold Mine 28,308 9,030 7,912 55 A.G.W. Knock Anglo Platinum 24,224 21,456 4,476 - B. Coetzee Xtrata Coal - SA - 7,397 2,221 -
76,864 71,016 21,071 55
Transactions with other national public entities Amount Received 2007/08 R’000
Amount Paid
2007/08 R’000
Amount Payable 2007/08 R’000
Amount Receivable
2007/08 R’000
National Skills Fund - - 2 580 - Telkom - 199 15 - Total - 199 2 595 -
Amount Received 2006/07 R’000
Amount Paid
2006/07 R’000
Amount Payable 2006/07 R’000
Amount Receivable
2006/07R’000
- National Skills Fund 3 742 966 3 799 - Telkom - 196 15 - Total 3 742 1 162 3 814 -
7.6 Notes to the Annual Financial Statements
AN
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2008
MIN
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ANNUAL REPORT
2007/2008
“Digging with Skills and Knowledge”