Presentation to the Portfolio Committee on LabourOctober 2005

INSETA TEAM

• Mike Abel CEO

• Shirley Steenekamp SD Manager

• Leon Ganswyk Projects

• Francois Burger Finance & IT

1%24%

24%

2%

30%

1%

18% Activities auxiliary tofinancial intermediation

Reinsurance

Short Term Insurance

Health Care BenefitsAdministration

Life Insurance

Insurance and PensionFunding

Collective Investments

SECTOR PROFILE

Sector ProfileNumber of Employers by size of payroll

76%

9%

6%

4%5%

0-R500 000

R500 000-R1mil

R1mil-R2mil

R2mil-R4mil

>R4mil

Gender Profile of the Sector

42%58%

Male

Female

Sector Profile

Employees By Occupational Category and Race

9

14

11

26

26

34

34

81

78

77

31

30

4

12

10

17

25

10

11

6

16

14

34

22

5

9

9

8

9

10

7

0

2

8

6

5

82

65

70

49

40

46

48

13

4

1

29

42

0% 20% 40% 60% 80% 100%

Senior Officials and Managers / Owner Managers

Middle to Junior Management

Professionals

Technicians and Associated Professionals

Clerical / Administrative workers

Service and Sales Workers

Agricultural and Fishery Workers

Skilled/Craft & Related Trade Workers

Plant / Machine Operators and Assemblers

Labourers/ Elementary Workers

Section 18 (1) Learners

Section 18 (2) Learners

Temporary/ Additional/ Contract Workers

African Coloured Indian White

Sector ProfileSCARCE AND CRITICAL SKILLS OF SECTOR

Scarce Skills Occupational Level

Advanced Financial Management

General ManagersFinance ManagersOwner/ManagerFinancial Investment Advisors

Advanced Computer Literacy

Insurance InvestigatorInsurance Loss AdjustorClerical and Office SupportInsurance ClerkPersonal AssistantSecretaryInsurance BrokerOwner/ManagerGeneral ManagersInsurance Agents

Legislative Compliance Skills

Company SecretaryInsurance BrokerInsurance Agents

Management & Business Leadership Skills

General ManagersCorporate Services ManagersFinance ManagersHuman Resource ManagersOwner/ManagerGeneral AccountantOffice ManagerInsurance ClerkManagement Consultant

Customer relations & marketing skills

Insurance ClerkInsurance AgentsMarketing SpecialistTelemarketerFinancial Investment Advisors

SETA PROFILE Cont. (INSETA’s staff composition as at 31 March 2005)

Name Position Gender Race

Mike Abel Chief Executive Officer Male Indian

Phakama Nkosi Corporate Services Manager Male Black

Shirley Steenekamp Skills Development Manager Female White

Glen Edwards ETQA Manager Male White

Saber Patel Acting Learnerships Manager Male Indian

Neesha Naidoo ETQA Consultant Female Indian

Nathan Seotsanyana ETQA Consultant & Investors in People Co-ordinator

Male Black

Vacant ETQA Consultant - -

Lynette Mentor Skills Development Consultant Female Coloured

Pam Erasmus Learnerships Administrator Female Coloured

Antoinette de Castro Personal Assistant/Office Administrator Female White

Sheana Campbell Secretary: ETQA & Learnerships Division Female White

Viola James Secretary: Skills Development Division Female Coloured

Laverne Ogle Receptionist Female Coloured

Zodwa Motloung Housekeeper Female Black

SETA PROFILE Cont. LOCATION OF OFFICESMAIN OFFICE: GROUND FLOOR, NORTH WING, OAKHURST BUILDING

11 ST ANDREWS ROAD, PARKTOWN, JOHANNESBURG

REGIONAL REPRESENTATION

Robin K. Lansdell Eastern Cape, (Port Elizabeth) PO Box 12103, Centrahill

PORT ELIZABETH, 6002

Shukumani Mapaya Eastern Cape, (East London) PO Box 1137, EAST LONDON

5200

Lieza Blom Western Cape 12 Valencia Rd, Uitzicht

CAPE TOWN

Mary-Joe Emde KwaZulu Natal PO Box 194, UMHLANGA,4320

Ernerst Ngobeni Gauteng PO Box 4627, KEMPTON PARK, 1628

Ntakuseni Hezekiel Nengwenani

Free State 208/209 Sunday School Building, Maitland Street, BLOEMFONTEIN

NSDS Success Indicators Achievement

1.1 By March 2005, 70% of all workers to have at least a Level One qualification on the NQF

According to the SSP research, the Sector employs 1055 Labourers and elementary workers. Of these, 512 received training, and 285 received training on ABET Programmes. More than 70% of the employees in the sector already have a qualification higher than NQF level 1.

1.2 By March 2005, a minimum of 15 per cent of workers to have embarked on a structured learning programme, of whom at least 50 per cent will have completed their programme satisfactorily

15% of the Sector’s employees at 89 000 people would be 13,350 people. 25 829 employees in levy-paying companies embarked on structured learning programmes funded from Discretionary funds. All of these have successfully completed their learning programme.

NSDS 2001 – 2005 ACHIEVEMENTS

NSDS Success Indicators Achievement

1.3 By March 2005, an average of 20 enterprises per sector (to include large, medium and small enterprises) and at least five national government departments, to be committed to, or have achieved the Investors in People Standard

Target achieved – 62 companies have committed to, and 14 have achieved the standard.

NSDS 2001 – 2005 Achievements cont.

NSDS Success Indicators Achievement

2.1 By March 2005, at least 75 % of enterprises with more than 150 workers are receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured

The majority of large companies are claiming grants. Of the 50 large companies, 49 claimed levy back. This is 99% achievement. In the period 2001 to 2005, INSETA paid out R 345 321 000.00 in mandatory and discretionary grants.

2.2 By March 2005, at least 40 % of enterprises employing between 50 and 150 workers are receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured

Of the 56 medium sized companies. 49 claimed grants. This amounts to a 87.5% achievement.

NSDS 2001 – 2005 Achievements cont.

NSDS Success Indicators Achievement

3.1 By March 2005, at least 20 % of new and existing registered small businesses to be supported in skills development initiatives and the impact of such support to be measured

INSETA has 3807 SMME’s of which 164 submitted WSP/ ATR. All SMMEs benefited from each project.

The FAIS Fit and Proper RPL assessment project, and ongoing Continuing Professional Development were particularly focused on the SMME broker community.INSETA has a SMME Support Strategy through direct regional support in Gauteng, KwaZulu-Natal, Western Cape and recently in Eastern Cape, and in the Free State.

NSDS 2001 – 2005 Achievements Cont.

NSDS Success Indicators Achievement

5.1 By March 2005, a minimum of 80,000 people under the age of 30 to have entered learnerships.

INSETA has supported 2127 unemployed learners in learnerships, to date.

Of these 524 are known to have been placed.

NSDS 2001 – 2005 Achievements cont.

2004/05

Annual Financial Statements R’000

SDL Levy Income – 80% R125 405

Investment income R5 899

Total revenue (including 80% levy income, NSF income, investment income etc.)

R153 524

Total expenses (including admin expenses, NSF expenses, grant and project expenses etc.)

R134 737

Admin expense as % of admin levy income 81%

Net surplus R18 787

Cash and cash equivalents R98 856

Annual Financials and Audit Results

Annual Financials and Audit Results

•Qualifications on Audit

•Matters of Emphasis

•Significant Matters

Committed Funds & ProjectsCash and cash equivalent

Annual Financial Statements 2004/05

Cash and cash equivalents R 98 856

ADD: Assets, including levy receivables and fixed assets R 25 324

LESS: Current liabilities, including grants payable, accounts payables, accruals, etc.

(R 62 705)

Funds available R 61 475

LESS: Net allocation to projects (difference between total allocation and total expenditure)

(R 50 925)

Unallocated funds R 10 550

1. Graduates – Internships and Work based experience grant

2. Upgrading Educational Qualifications - FAIS

3. Black Men in Business

KEY CHALLENGES FOR 2005-2006