2008/2009 annual report labour portfolio committee session 10 november 2009

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2008/2009 Annual Report Labour Portfolio Committee Session 10 November 2009. JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128 - PowerPoint PPT Presentation

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  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530

    2008/2009 Annual Report

    Labour Portfolio Committee Session

    10 November 2009

  • OverviewBackground2008/9 DevelopmentsPerformance against 2008-2009 SLAFinancial Performance Cash ResourcesAudit Findings Challenges Training Lay-off SchemeImpact of Skills Development

  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 Accounting Authority appointed in April 2008.Mechanisms for good corporate governance put in place.Executive Management Team appointed. New organizational structure implemented in July 2008.Strategic plan developed to , inter alia, curb over-expenditure, improve performance and enhance compliance.

    Background

  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 Compliance with AGSA, Dept of Labour and SAQA requirements.Impact of strict financial controls on over-expenditure.R38 million DG Call.Mandatory Grant payment backlog eradicated. R28,5 million disbursed against pre 2008/9 projects.Strides made on provider accreditation and learner achievement.

    2008/9 Achievements

  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOHMthombo, 6 rydallvale Park, La Lucia Ridge, 4319CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 Performance against 2008-9 SLA

    NSDS Indicator2008/2009 TargetsAchievedVariance1.1 SSPAnnual updateAchievedNone1.2 Training on SDF guide250156-942.5 BEE firms and Co-ops10414-902.7 ABET: Entered5101033523 ABET: Completed2555492942.8 Employed: Entered65066919 Employed : Completed64071777

  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOHMthombo, 6 rydallvale Park, La Lucia Ridge, 4319CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 Performance against 2008-9 SLA

    NSDS Indicator2008/2009 TargetsAchievedVariance3.2 NLPs, NGOs, CBOs & Co-ops3818-204.1 Unemployed: Entered3001250950 Unemployed: Completed150150413544.2 FET/HET Workplace Exp.01171174.3 NVC: Entered10081-19 NVC: Sustainable Ventures200-205.1 ISOEs3305.2 NVC Training Providers330

  • Financial Performance

    Total IncomeAdministration reserveMandatory GrantsDiscretionary Grants Total revenue184 06619 94899 59153 193Total expenses 132 151 27 561 78 309 14 947

    Net surplus/(deficit) 51 915 (7 613) 21 282 38 246

    Expenditure as % of revenue72%138%79%28%

    Prior year comparative %95%193%81%158%

  • Financial Performance (Contd)Record of Surplus/(Deficit )

    2006/072007/082008/09CommentAdministration(20 738)(16 238)(7 613)Deficit predominantly attributed to completion of Administrator engagements

    Discretionary Grants(19 310)(27 687)38 249Accounting Authority decision to limit Discretionary Grant allocations to facilitate the correction of prior periods over-commitments

    Mandatory Grants21 776 16 67921 282Mandatory Grant surplus is re-directed to Discretionary Grant Reserves annually. These Grants disbursements are currently paid quarterly in compliance with legislation.

  • Cash Resources

    R'000 MAPP-SETA Cash at bank 172 749 MAPPP-SETA current liabilities 33 532 Mandatory grants 24 305 Discretionary grants 3 473 Inter-SETA transfers 216 Administration expenses 5 538 139 217 Provision-refundable to employers under the threshold of R500 000 6 980 132 237 Post-retirement benefit obligations 3 019 129 218 Commitments 94 549 R 34 669

  • Audit findings based on three factors:

    Inaccuracies of records maintained during 2007/2008 which were highlighted in the Audit Report for the year ended 31 March 2008;Inadequate hand-over of the MAPPP-SETA affairs from the Administrator to SETA Management; andInitial staff instability during the appointment of the new Accounting Authority.

    Significant portion of irregular expenditure of R 4,651m, whilst incurred during 2008/2009 financial year, resulted from service providers engaged by the Administrator prior to completion of their term of office and can thus be considered as a continuation of the costs incurred whilst the SETA was under administration.Audit findings

  • Annual General MeetingSection 51(1)(a) of the PFMA states that An Accounting Authority for a public entity must ensure that the public entity has and maintains effective, efficient and transparent systems of financial and risk management and internal control.The SETA is required to provide its stakeholders with information on its progress insofar as financial and non-financial performance.The SETA must gain acceptance and approval of its Annual Report from the stakeholders.To comply with the above, the SETA held an Annual General Meeting on 28th November 2009 to which stakeholders were invited.The cost of attending to this requirement was R22 681,11 for the hire of the venue

  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 Communication.Battered image.Limited revenue.Board and staff development.Apprenticeship administration.Review of trades and qualifications.Certification backlog.

    Challenges

  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 R5 million seed funding and infrastructure committed to TLS Project.Project Team appointed and project plan put in place.Board TLS Task Team appointed to serve a sounding board to the Project Team.Service provider to assist with pilot and skills transfer appointed. Working relationship established with CCMA and NSF. CCMA updates received weekly. To date no companies in our sectors have applied for enrolment into TLS.

    Training Lay-off Scheme

  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 Research on companies in distress underway to determine required information to feed into the CCMA process. To this end, following has been done:Advocacy campaign which commenced on 2 November 2009.Development of an instrument for measuring the impact of the recession.A sample of 60 potential participant companies identified for assessment.Assessment to commence on 5 November 2009.

    Training Lay-off Scheme (Contd)

  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park , Building 2, Coombe Place, Rivonia, Sandton, 2128DURBAN Tel no: 031 566 2790 Fax no; 031 566 1874 Address: Suite 1, EOH Mthombo, 6 rydallvale Park, La Lucia Ridge, 4319CAPE TOWN Tel no: 021 910 3001 Fax no: 021 910 3080 Address: 7th Floor, Manhattan Plaza, 100 Edward Street, Tygervalley, Bellville, 7530 3850 learners certificated to date for 2005/2009 period.The provincial spread of these learners is as follows: Eastern Cape - 436; Gauteng 1115; Free State - 58; KwaZulu Natal - 519; Limpopo - 231; Mpumalanga - 265; Northern Cape - 271; North West - 316; Western Cape 639.Verification of results of approximately 2900 learners currently underway after a campaign of closing a large number of old projects.Newly funded projects on course to deliver more learner results in near the future.

    Impact of Skills Development

  • JOHANNESBURG Tel no: 011 234 2311 Fax no: 011 234 2350 Address: Tuscany Office Park

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