HET

PRESENTATION TO THE PORTFOLIO

COMMITTEE ON HIGHER EDUCATION AND

TRAINING (PCHET)

PARLIAMENT OF SOUTH AFRICA, CAPE TOWN

07 November 2012

HET

2011/12 ANNUAL RESULTS

HET

STATEMENT OF FINANCIAL PERFORMANCE

HET

STATEMENT OF PERFORMANCE

DESCRIPTION2011/12R’000

2010/11 R’000

% INC/(DEC)

TOTAL REVENUE 691,113 560,804 23%

TOTAL EXPENDITURE (722,930) (476,041) 52%

SURPLUS/(DEFICIT) (31,817) 84,763 (138%)

HET

STATEMENT OF PERFORMANCE

Increase in revenue: Received 8% vs 5% projection for 2011/12 :

Average salary increase in the sector of about 10%;

Wholesale & Retail levy paying companies growth (ex Fuel Retailers) = 12%;

Fuel Retailers contribution = 4.3%

HET

STATEMENT OF PERFORMANCE

Increase in expenditure: Mandatory Grants increase – 19%; Discretionary Grants increase - 123%; (Total Discr. Grant Exp. = R354m - highest in years)

Part of contribution from new Bursary Scheme for

1000 1st and 2nd year students = 21%; and the

Unemployed Youth Assistance Programme

= 35% of expenditure

HET

STATEMENT OF FINANCIAL POSITION

STATEMENT OF POSITION

HET

DESCRIPTION 2011/12 R’000

2010/11 R’000

NOTE

TOTAL ASSETS 982,328 1,055,618 1

TOTAL LIABILITIES 100,305 141,778

CAPITAL & RESERVES 882,023 913,840 2

NOTE: CASH & CASH EQUIVALENTS 965,986 1,042,144

DISCRETIONARY RESERVE 877,934 911,071

STATEMENT OF POSITION

HET

Decrease in cash is due to:

Increase in expenditure i.e. Discretionary grants;

Resulting in 5% lower interest income:

Current liability decreases are mainly due to a reduction in

payables from non-exchange transactions (73% lower)

Number of People Trained = 338 240 (2011/2012)

Top Training interventions:

Sales Persons, Assistants and Reps.

Retail Managers / Store Managers

Cashiers – Skilled Workers;

General Admin & Finance

Store Persons (packer, shelve packer, driver)

Office Cashiers, Merchandisers

Debtor’s Clerk and Collector

MANDATORY GRANTS

Labour

MANDATORY GRANTS

Labour

Companies participating in Mandatory Grants 2011/2012

No of Levy-paying Companies

No of Participating Companies

Percentage

Large 457 414 90%

Medium 1300 1029 79%

Small 9, 651 6545 68%

MANDATORY GRANTS

Labour

Mandatory Grants disbursement of R 302m -2011/2012

Mandatory Grant disbursement performance

Mandatory grants available

Mandatory grants disbursed

Percentage

Large R 201m R 191m 95%

Medium R 58m R 44m 76%

Small R 135m R 67m 49%

MANDATORY AND DISCRETIONARY GRANTS

12 YEARS12 YEARS

Labour

Total Levies Received R4bn vs Disbursement of R3.6bn

Grant disbursement performance

Levy Received Grants Disbursed

/Allocated

Percentage

MANDATORY R2.7bn R1.97 74%

DISCRETIONARY R 901m R1.2bn 135%

ADMINISTRATION R503m R452m 90%

HET

SLA ACHIEVEMENTS

HET

DISCRETIONARY GRANTS

5 876 learners - enrolled on Learnerships (73% NQF Level 2) Target = 1500 ( over achievement due to delayed registration of project approved in the previous year).

2 774 learners Qualified in learning programmes – Target = 1500 – Extra learners are rolled over from the previous year. Completions:

1 986 learners – Learnerships (74% NQF Level 2) 788 learners – Skills Programmes

SLA ACHIEVEMENTS

HET

The improvement in Mandatory Grants expenditure was due to increased levies and ATRs / WSPs submitted;

ATRS/WSPS from all companies increased from 5 564 (2010/2011) to 7 683 (2010/2012) ATRs / WSPs from small companies increased (2010/2011)

to 6 654 (2010/2012) from 4 444 Increase in small companies due to new Fuel Retailers

SLA ACHIEVEMENTS

Discretionary Grants approved of R 636m -2011/2012

48 Projects approved – Total allocation R803m

HET

DISCRETIONARY GRANTS

CURRENT KEY STRATEGIC PROJECTS

HET

International Leadership Development Programme (R 13,8m)

Objective: accelerate leadership skills of 40 senior managers through exposure to local and

international exposure - Achieved = 38 completed

Retail Management Development Programme (R 10m)

Objective: develop management skills of 200 managers / supervisors. Feeder programme to

ILDP Achieved = 207 Registered

2011/12 Discretionary Grant Funding Windows(R 327m)

Objective: implement various initiatives (learnerships, AET, rural development, etc.) through

grants to 280 stakeholders to benefit 20,000 employed and unemployed learners - Current

Status – Registration 31/10/12 14,812

SADDT Disability Project (R30m)

Objective: Provide skills development opportunities for 420 people with disabilities - Achieved

= 268 Learners registered.

HET

NSFAS Bursary Scheme (R 185m)

Objective: provide financial assistance and workplace experience to 2000 students through

NSFAS in response to Minister of Higher Education and Training’s call - Achieved 417

W&RSETA Bursary Scheme (R 153m)

Objective: provide financial and workplace experience to 2667 university and FETC in

order to address scarce and critical skills in the sector - Achieved – 1000 1st years

registered at HETs; 1667 not achieved - Current status – Registrations – FET = 636;

HETs = 646 1009 Registrations (after 31/03/2012).

SMME Voucher System (R 32m)

Objective: provide training vouchers to 8 000 SMMEs to implement training interventions to

address their specific needs – Achieved – 8 235

CURRENT KEY STRATEGIC PROJECTS

HET

SMME Support : WSP / ATR :

Objective: To assist 7 000 small companies in completing the WSP and ATRs for

accessing Mandatory Grants and other SETA programmes – Achieved = 7 683.

CURRENT KEY STRATEGIC PROJECTS

HET

AG’s REPORT

AUDITOR – GENERAL’s REPORT

Qualified opinion – Confirmation of the

completeness and accuracy of the balance of

contracted grant commitments

HET

2011/12 ANNUAL REPORT

Emphasis of Matter:

Predetermined Objectives;

Usefulness of information;

Compliance with laws and regulations;

Internal Control.

HET

2011/12 ANNUAL REPORT

CHALLENGES/OPPORTUNITIES

HET

Poor participation by companies particularly SMMEs leading to high

cash reserves;

Availability of workplaces to host learners and unemployed graduates;

Establish sustainable partnerships with all relevant stakeholders;

Rural development initiatives;

Lack of W&R programmes in FET and HET institutions;

HET

Thank You