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REPUBLIC OF SOUTH AFRICA

01FP&M SETA Annual Report | 2012/13

AnnuAl RepoRt of the fp&M SetA 1 ApRil 2012 to 31 MARch 2013Publisher FP&M SETA Forum1B,2ndFloor,BraamparkOfficePark, 33 Hoofd Street, Braamfontein, Johannesburg, 2001

Tel: +27 (0) 11 403 1700 Fax: +27 (0) 11 403 1718

E-mail: [email protected] Website: www.fpmseta.org.za

LayoutandDesign Cre8orGlobalCommunicationsPrinter SeritiPrinting(Pty)Ltd.Report Number RP156/2013ISBN Number 978-0-621-41898-9

ForsubmissionintermsofthePublicFinanceManagementAct,1999(ActNo.1of1999).

Honourable Minister, it is my privilege and pleasure to present to you the Annual Report of the Fibre Processing &Manufacturing SectorEducationandTrainingAuthority(FP&MSETA),forthefinancialyearendedMarch2013.

OnbehalfoftheFP&MSETABoardandstaffIwanttothankyouandthe Department of Higher Education and Training for your supportduringthereportingperiod.

Minister Blade Nzimande, MPMinisterofHigherEducationandTraining

Bheki ZuluActingChiefExecutiveOfficer:FP&MSETA



contentS

Part A: General Information ............................................................................................................................... 41. FP&M SETA’sGeneralInformation .............................................................................................................................................................. 52. ListofAbbreviations/Acronyms ................................................................................................................................................................... 53. StrategicOverview ....................................................................................................................................................................................... 63.1. Vision ........................................................................................................................................................................................................... 63.2. Mission......................................................................................................................................................................................................... 63.3. StrategicOutcomeOrientatedGoals ........................................................................................................................................................... 64. LegislativeandOtherMandates .................................................................................................................................................................. 65. OrganisationalStructure .............................................................................................................................................................................. 66. Foreword by the Chairman .......................................................................................................................................................................... 77. ActingChiefExecutiveOfficer’sOverview ................................................................................................................................................... 98. FP&M SETAOffices.................................................................................................................................................................................... 12

Part B: Performance Information ...................................................................................................................... 131. StatementofResponsibilityforPerformanceInformation ........................................................................................................................ 142. Auditor’sReport:PredeterminedObjectives ............................................................................................................................................. 143. Overview of the FP&M SETA’sPerformance ............................................................................................................................................. 143.1. ServiceDeliveryEnvironment .................................................................................................................................................................... 143.2. OrganisationalEnvironment ...................................................................................................................................................................... 153.3. KeyPolicyDevelopmentsandLegislativeChanges .................................................................................................................................... 154. PerformanceInformationbyProgramme .................................................................................................................................................. 165. SummaryofFinancialInformation ............................................................................................................................................................ 445.1. RevenueCollection .................................................................................................................................................................................... 445.2. CapitalInvestment,MaintenanceandAssetManagementPlan ............................................................................................................... 44

Part C: Governance ........................................................................................................................................... 451. Introduction ............................................................................................................................................................................................... 462. PortfolioCommittee .................................................................................................................................................................................. 463. The FP&M SETA Board .............................................................................................................................................................................. 464. Risk Management ...................................................................................................................................................................................... 515. InternalAuditFunction .............................................................................................................................................................................. 526. AuditCommittee........................................................................................................................................................................................ 527. CompliancewithLawsandRegulations ..................................................................................................................................................... 528. FraudandCorruption ................................................................................................................................................................................ 529. MinimisingConflictofInterest................................................................................................................................................................... 5310. CodeofConduct ........................................................................................................................................................................................ 5311. Health Safety and Environmental Issues .................................................................................................................................................... 5312. AuditCommitteeReport ............................................................................................................................................................................ 54

Part D: Human Resources Management ............................................................................................................ 561. Introduction ............................................................................................................................................................................................... 572. HumanResourcesOversightStatistics ....................................................................................................................................................... 58

Part E: Financial Information ............................................................................................................................ 611. Statement of Responsibility ....................................................................................................................................................................... 622. ReportoftheActingChiefExecutiveOfficer .............................................................................................................................................. 623. Report of the External Auditor .................................................................................................................................................................. 644. AnnualFinancialStatements ..................................................................................................................................................................... 67

Annexure1:SpecialProjectAllocationstoSupportProgrammeslinkedtoStrategicGoals .............................................................................. 114


pARt A: GeneRAl

infoRMAtion


1. Fp&M Seta’S General InForMatIon

Registered Name: FibreProcessing&ManufacturingSectorEducationandTrainingAuthority(FP&MSETA)Physical Address: Forum1B,2ndFloor,BraamparkOfficePark, 33 Hoofd Street, Braamfontein, Johannesburg, 2001Postal Address: PO Box 31276 Braamfontein 2017Telephone Number/s: +27 (0) 11 403 1700Fax Number: +27 (0) 11 403 1718Email Address: [email protected] Address: www.fpmseta.org.zaExternal Auditors: Auditor-GeneralofSouthAfrica(AgSA)Bankers: Nedbank,StandardBankandCorporationforPublicDeposits(CPd)

ACRONYM FULL DESCRIPTION

AET AdultEducationandTrainingAGSA Auditor-GeneralofSouthAfricaAFS AnnualFinancialStatementsAPP AnnualPerformancePlanATR Annual Training Report CATHSSETA Culture, Arts, Tourism, Hospitality and Sports

SectorEducationandTrainingAuthorityCBO CommunityBasedOrganisationCE ChiefExecutiveCEO ChiefExecutiveOfficerCFO ChiefFinancialOfficerCIPC Commission for Intellectual Property and

Companies COO ChiefOperationsOfficerCPD CorporationforPublicDepositsCPUT CapePeninsulaUniversityofTechnologyCTFL Clothing,Textiles,FootwearandLeatherDAFF DepartmentofAgriculture,ForestryandFisheriesDEDT DepartmentofEconomicDevelopmentandTourismDHET DepartmentofHigherEducationandTrainingDTI department of Trade and Industry DUT DurbanUniversityofTechnologyETQA EducationandTrainingQualityAssuranceEXCO ExecutiveCommitteeFET FurtherEducationandTrainingFIETA ForestryIndustriesEducationandTrainingAuthorityFP&M FibreProcessing&ManufacturingGRAP GenerallyRecognisedAccountingPracticeHET HigherEducationandTrainingHR HumanResourcesIPAP2 IndustrialPolicyActionPlan2IT InformationTechnologyKZN KwaZulu-Natal MAPPP Media, Advertising, Publishing, Printing and

Packaging

ACRONYM FULL DESCRIPTION

MIS ManagementInformationSystemMOA Memorandum of Agreement MOU Memorandum of Understanding NAMB NationalArtisanModeratingBodyNEET Notinemployment,educationortrainingNGO Non-GovernmentalOrganisationNOPF NationalOccupationalPathingFrameworkNPO Non-ProfitOrganisationNQF NationalQualificationsFrameworkNSA NationalSkillsAuthorityNSDS NationalSkillsDevelopmentStrategyNCV NationalCertificateVocationalOFO OrganisingFrameworkforOccupationsPASA PublishersAssociationofSouthAfricaPFMA Public Finance Management Act of South Africa,

1999(ActNo1of1999).PIVOTAL Professional,Vocational,TechnicalandAcademic

Learning PPPF Preferential Procurement Policy Framework Act

of 2000QCTO QualityCouncilforTradeandOccupationsRPL RecognitionofPriorLearningSACTWU SouthernAfricanClothingandTextileWorkersUnionSAQA SouthAfricanQualificationsAuthoritySARS SouthAfricanRevenueServiceSCM Supply Chain Management SDL Skills development Levy SETA SectorEducationandTrainingAuthoritySMME Small,MediumandMicroEnterprisesSSP SectorSkillsPlanUIF UnemploymentInsuranceFundW&R SETA Wholesale and Retail Sector Education and

Training Authority WSP WorkplaceSkillsPlan

2. lISt oF aBBreVIatIonS/aCronYMS


3. StrateGIC oVerVIeW

3.1. VISION “Toprovideaquality,relevantpost-schoolingeducationandtrainingsystem thatwill produce a highly skilled andworld-classworkforce,enhancingproductivityandcompetitivenessofthesector, leadingtoeconomicgrowth,employmentandsustainability.”

3.2. MISSION“To establish a credible institutional mechanism that facilitates anefficientandeffectiveskillsdevelopmentprocess,througharangeofqualityservicesandpartnerships,tocontributetotheachievementofsectorcompetitiveness,transformationandeconomicgrowth.”

3.3. STRATEGIC OUTCOME ORIENTATED GOALS• Establishing a credible institutional mechanism for skills

planning• Increasingaccesstooccupationallydirectedprogrammes• Promoting the growth of a public Further Education and

Training (FET) college system that is responsive to sector,regionalandnationalskillsneedsandpriorities

• Addressing the low level of youth and adult language andnumeracyskillstoenableadditionaltraining

• Encouragingbetteruseofworkplacebasedskillsdevelopment• Encouraging and supporting cooperative, small enterprise,

worker initiated, non-governmental organisation (NGO) andcommunitytraininginitiatives

• Buildingcareerandvocationalguidance.

4. leGISlatIVe anD otHer ManDateS

TheFP&MSETAisaPublicEntityunderSchedule3AofthePublicFinanceManagementActofSouthAfrica,1999(ActNo01of1999)(PFMA).The FP&M SETA is governed by:

Legislation:1. Section9oftheSkillsDevelopmentAct,1998(ActNo.97of

1998) as amended in 20082. SkillsDevelopmentAmendmentAct,2008(ActNo.37of2008)3. Skills Development Amendment Act, 2011 (Act No. 26

of 2011)4. The South African Qualifications Authority Act, 1995 (Act

No. 58 of 1995)5. TheNationalQualificationsFrameworkAct,2008(ActNo.67

of 2008)6. TheSkillsDevelopmentLeviesAct,1999(ActNo.09of1999)7. The Public Finance Management Act, 1999 (Act No. 01 of

1999) as amended)8. Treasury Regulations for Departments, Constitutional

InstitutionsandPublicEntities9. Sector Education and Training Authorities (SETAs) Grant

RegulationsRegardingMoniesReceivedbyaSETAandRelatedMatters(RegulationNo.990of3rdDecember2012).

Government Policy Frameworks:

1. NationalSkillsDevelopmentStrategy(NSDS)III2. New growth Path (NgP)3. Medium Term Expenditure Framework of government4. NationalDevelopmentPlan(NDP)5. HumanResourcesDevelopmentStrategy6. IndustrialPolicyActionPlan(IPAP)27. NationalSkillsAccord8. Integrated growth and development Plan9. Youth development Plan10. Rural growth and development Strategy11. ProvincialGrowthandDevelopmentStrategies.

5. orGanISatIonal StrUCtUre

pARt A: GeneRAl infoRMAtion

ExplanatoryNote:MrBhekiZuluwastheActingCEOoftheFP&MSETAfor the period under review. Ms Felleng Yende was appointed as the CEOoftheFP&MSETAwitheffectfrom1May2013.

Acting Chief Executive Officer -

Mr Bheki Zulu

Accounting Authority / FP&M SETA Board

Chief Operations

Officer - Mr P K Naicker

Chief Executive:

Strategy and Corporate

Affairs - Mr

SimangalisoMkhwanazi

Chief Financial Officer - Mrs Gina

Layzell

Projects Education & Training

Quality Assurance

(ETQA) Regional Offices

Skills Planning & Research

Marketing & Communications

Monitoring & Evaluation

Human Resources

Finance - Supply Chain Management

(SCM)

Risk Manager -

Ms Breezer Gule

Risk ManagementInternal Audit

6. ForeWorD BY tHe CHaIrMan


During this second year of its existence, I have had the privilegeto observe the FP&M SETA grow from an infant into a promising young organisation that has at its core a burning passion for skillsdevelopmentintheFP&Msector.

Thepastyearwasdedicatedtotheestablishmentofafullyintegratedorganisationalsystemthroughthedevelopmentandimplementationofapolicyandcomplianceframeworkincludingcomprehensivehumanresourcepoliciesandprocedures,performancemanagementsystems,risk management frameworks and quality management systems. The membersoftheFP&MSETAadvisorycommitteesplayedanimportantrole during this process by providing valuable input and leadership to management.

TheorganogramwillbereviewedinthenewfinancialyearundertheleadershipofthenewlyappointedCEOtoensuremaximumutilisationofcurrenthumanresources.

TheSETABoard,ExecutiveCommittee(EXCO)andadvisorycommitteesmetregularlyduringtheyeartomeettheirobligationsassetout inthe Constitution of the FP&M SETA. However, it was found that inmanyinstancesthescopeofthecommitteesoverlapped,resultinginaduplicationofactivities.Anexercisewillbe conducted in thenewfinancialyeartoreviewthescopesofthevariousadvisorycommitteesinabidtoeliminateanyunnecessaryduplicationofeffortaswellastoenhancetheirvalue-addtothebusinessoftheFP&MSETA.

Asan independentparty to theSETA, itwas interesting tonote thevigourwithwhich stakeholders engaged in SETA activities and skillsdevelopmentissues.Participationbyindustrystakeholders(bothfromemployerorganisationsand labourunions) ingovernancestructuresis voluntary and none of the industry stakeholders is remunerated for theirefforts,yet thededicationwithwhichtheyprepareforandparticipateinSETAmeetingsandactivitiesisremarkable.

It is worth noting that the participation of industry stakeholderswas not only confined to the formal structures of the SETA butextended to participation in focus group discussions that were setup to provide input into the Sector Skills Plan (SSP), the scopinganddevelopmentofqualificationsand thedevelopmentof industrystrategiestofacilitateskillsdevelopmentinthedifferentsub-sectors.Participation further included the attendance of a range of SETAinformationsharingworkshops,someparticularlyaimedatinformingstakeholders of specific issues such as workplace skills planning ordiscretionarygrants,othersaimedatsolicitingstakeholderinputsandresponses. These workshops were always well attended and inputsfromstakeholdersrangedfromusefulinformationandhelpfuladviceto robust expressions of disenchantment with SETA processes andcustomerservicewhichservedasaninvaluablecontributiontowardsour ongoing efforts of rendering the FP&M SETA service offeringsresponsivetotheneedsandexpectationsofourstakeholders.

Mr Sipho NgidiChairman of the FP&M SETA Board


It became quite clear that a few stakeholders aligned to specificsub-sectorsof theSETAwerenotpleasedwithsomeaspectsofourserviceofferings.Wehaveidentifiedtheneedtoaddressthenegativeperceptionsandthedisenchantmentwithservicedeliveryincertainareasof ourbusiness, a task that shouldbeprioritisedand receiveundivided attention of both the SETA Board and management. Tothis end, management will be directed towards the issues thatreceive frequent mention when these stakeholders express theirdisenchantment.

during August 2012, the FP&M SETA Board engaged with the ManagementTeamtodiscusstheSETA’sStrategicIntentfortheperiod2012–2016.Thefollowingkeyperformancegoalswereidentified:

• Strengthen financial and administrative efficiency andeffectiveness

• Meetregulatorycompliance• Buildsectoralskillsdevelopmentcapacity• Formalisestrategicpartnerships• Developandstreamlinecommunicationsystemsandprocesses• Establishorganisationarchitectureanddesign• Developandresearchknowledgeandmanagementcapability.

Key strategic actions underpinning these goals were identified and at thetimeof reporting, the SETAhadbegun to roll-out theaction plan that had been put together to realise the above stated performancegoals.

TheperiodunderreviewhasbeenmarkedbyexcitingachievementswhichincludedsectorprojectsconductedinpartnershipwithpublicFETcolleges,universities,privatetrainingprovidersandworkplaces.Details of theseprojects are reflected in theActingCEO’soverviewand in thePerformanceReportonpages16 to42.TheFP&MSETABoardhasnotedthemarkedimprovementinperformancereportedin learning programme-implementation areas such as learnershipsand apprenticeships, and has also taken note of the challengesexperienced in other areas such as placement of learners incompanies forworkplaceexperience.Mechanisms toaddressareasof underperformance as well as enhance performance further inareaswheretherehasbeenimprovedperformancewillbeexploredand implemented with a view to ensuring that the set targets are metacrosstheboardandtheoverallperformanceoftheFP&MSETAmakesaprofound impactontheFP&Msectorwithrespecttoskillsandeconomicdevelopment.

The Board has also taken great pride in the FP&M SETA’s appointment as the Lead SETA in the Western Cape to establish partnerships between the SETA community, industry and public FET colleges inthatprovince.Weareconfidentthatwiththegroundworkthathasbeendone in partnershipwithother SETAs and the FET colleges inquestiontosetupthestructuresthatwillgiveeffecttothestrategicintentandobjectivesofthismodel,theupcomingfinancialyearwillbemarkedbyaflurryofactivitiesrelatedtothe implementationofskillsdevelopmentinitiativesdrivenbyanumberofSETAs.


TheFP&MSETAAccountingAuthority(Board)noteswithgreatconcernthequalifiedopinionissuedbytheAGSAbasedontheirfindingthatmaterial misstatements were reported with regards to contractualgrantcommitments.

As reported in the previous year, the FP&M SETA has undergone a rigorous process of amalgamating three public entities. Integral totheprocessofamalgamationwasthefact thateachof thepreviousSETAs operated according to differentmethodologies and practices.The challenges of aligning a vast number of widely varied projectshavebeenenormousanditisunfortunatelyexplicitthatsomeoftheprocesses were not adequately addressed by the new FP&M SETA.Thelackofanintegratedmanagementsystemescalatedtheproblemasmuchoftheexistingandnewdatahadtobemanuallyprocessedwhichposedbothchallengesandorganizationalrisks.

The Accounting Authority acknowledges the performanceshortcomings that are still apparent and commits to addressing them toensure that anefficientandeffectiveorganisationemergesgoing forward.

IwouldliketothanktheFP&MSETABoardandcommitteemembersandotherindustryrepresentativesfortheirinvaluablecontributionstothedevelopmentoftheFP&MSETAspecifically,andskillsdevelopmentintheFP&Msectoringeneral.

IalsothanktheSETAstafffortheireffortsexpendedtowardsimprovingthe organisation, providing quality services to the industry andpromotingtheobjectivesoftheNationalSkillsDevelopmentStrategy.during the year under review we said goodbye to Mr Bheki Zulu, who hasservedtheSETAasanActingCEOsinceitsestablishment.WewishMr Zulu all the best for the future.

IalsowanttowelcomethenewCEOoftheSETA,MsFellengYende,whotakesoverthereinswitheffectfrom1May2013.MsYendecomesto the SETA with vast experience in financial management, humanresourcemanagementandtransformation.Iamconfidentthatunderher stewardship, the FP&M SETA will grow from strength to strength.

Sipho NgidiFP&M SETA31 May 2013


INTRODUCTION

After the 2011/2012 financial period which was characterised by aflurryofactivitiesgeared towards layingasound foundation for thenewlyamalgamatedorganisation,theFP&MSETAchannelledmostofitsenergies towardsservicedeliveryandperformance.Giant stridesweremadeinquiteanumberofperformanceareastherebyensuringthat the SETA inspired confidence in its stakeholder base, and gavehopeofbetterthingstocome.

ACHIEVEMENTS

StakeholderCommunicationThe FP&M SETA initiated stakeholder consultation forums duringthe period under review to strengthen its communication withstakeholders. Two rounds of information sessions were held inJohannesburg, Cape Town and durban during the months of July 2012andFebruary /March2013whereaplatformwas created forfrank and constructive engagement with a view to improving theserviceofferingsoftheSETA,identifyareasofcollaborationandforgepartnerships with industry players as well as update the stakeholders onthelatestdevelopmentswithintheskillsdevelopmentterrain,suchas facilitatingdiscussions around the revised grants regulations thatwerepromulgatedinDecember2012.

DiscretionaryGrantsFundingAfterconsternationwasexpressedbysomeFP&MSETAstakeholdersregarding the perceived uneven allocation of discretionary grantsduringthe2011/2012financialyear,theDiscretionaryGrantFundingand Allocation Strategy and the applicable policies and tools wereadjusted, and the processes implemented to allocate discretionarygrant fundingduring the2012/13financial period were consideredfair,credibleandtransparent.

The Board approved an allocation of approximately R259million interms of fixed funding windows (R184million) and special projects(R75 million). The programmes covered through the fixed fundingwindowsincludedlearnerships,apprenticeships,bursaries,internshipsand work experience opportunities. Funding for special projectscateredforprogrammesdirectedtowardsruraldevelopment,peoplewithdisabilities,promotingthegrowthofFETinstitutions,developingbusinessandentrepreneurialskills,addressingliteracyandnumeracyamongst the youth, promoting life skills through HIV programmes,provision of funding to co-operatives, NGOs, community basedorganisations(CBOs)andtradeunion-initiatedtraininginterventions.Funding was also made available for the development of QualityCouncilforTradesandOccupations(QCTO)alignedqualificationsandforAdultEducationandTraining(AET).

An amount of R78 million was allocated for artisan development,with 962 new apprentices benefiting from this funding opportunityand putting the FP&MSETA in a position tomeet its commitmentstowardsaddressingthetargetssetthroughtheNationalSkillsAccord (NSA) in relation to skills development and the creation of employmentopportunities.

7. aCtInG CHIeF eXeCUtIVe oFFICer’S oVerVIeW

Mr Bheki ZuluActing Chief Executive Officer


Some of the flagship projects that were implemented during the2012/2013financialyearincludethefollowing:

SekhukhuneFETProjectThe FP&M SETA allocated R2,2 million for a project which wasdelivered inpartnershipwithSekhukhunePublicFETCollege for thetraining of 88 unemployed learners from the surrounding rural and economicallydepressedvillages fora furnituremakingqualification.Attheconclusionofthistrainingprogramme,83learnerswerefoundcompetent, that isa94%throughputrate.Theprogramme includedtraining in entrepreneurship, which will enable learners who areunabletosecureemploymenttoestablishtheirownenterprises.

KingsburyInternationalCollegeFunding of R1,1 million was allocated to enrol 44 learners fromMiddleburgintheMpumalangaProvinceonaNewVentureCreationlearnership which commenced in March 2012. On completion ofthis programme, 40 of these learners had registered their new small businesseswith the Commission for Intellectual Property andCompanies(CIPC)andtheSouthAfricanRevenueService(SARS).

BoseleHandCraftCentreAnallocationofR79,200wasmadetoaschoolforyoungpeoplewithdisabilitiestoenrol11learners inanupholsterytrainingprogrammewhich they all passed. At the completion of the programme, theupholsteryequipmentandmachineryusedfortrainingweredonatedto the centre so that the graduates could use them to create jobopportunitiesforthemselves.

Given the success of this project, the SETA has allocated a furtherR600,000 for a follow-up project that will commence in the nextfinancialyeartobenefitanothercohortoflearnerswithdisabilities.

2012 Cape Town Book FairThe FP&M SETA served as a sponsor of note for the Cape Town Book Fairwhichtookplacefrom15to17June2012.Thisannualevent isthebrainchildofthePublisher’sAssociationofSouthAfrica(PASA)andcoincidedwiththe29thInternationalPublisher’sAssociationCongress.The event generated a lot of interest from local and internationalexhibitors, writers, book associations, book distributors, publishers,libraries,universitiesandprintinghousesandwasattendedbymorethan 10,000 visitors.

ThehighlightfortheFP&MSETA’sparticipationinthiseventwastheco-hostingofaseminaroncareersinthepublishingsectorwhichwasdoneincollaborationwithPASAandtheUniversityofWitwatersrand’sSchoolofLiteratureandLanguageStudies.


SkillsfortheWellingtonDistrictInNovember2012,L&XProjectsV,anaccreditedskillsdevelopmentprovider intheWesternCape,hostedagraduationceremonyfor30learners from Wellington, Klapmuts, Paarl and Mbekweni and the surroundingfarmingcommunitieswhohadsuccessfullycompletedanUpholsterySkillsProgrammeNQF2whichwasfundedbytheFP&MSETA to the tune of R216,000.

This projectwas a culminationof theMitchells Plain Skills InitiativeSummitwhichwas initiated byMinister TrevorManuel andDeputyMinister Marius Fransman in 2010, in collaboration with thecommunityofthisareaandvariousSETAs.

LeadSETAFETProjectTo give effect to the drive by theMinister of Higher Education andTraining,DrBladeNzimande,forclosercollaborationbetweenSETAsand post-school learning institutions, particularly FET colleges, alead SETA FET model was established by the department of Higher EducationandTraining(DHET).Intermsofthismodel,theFP&MSETAwas assigned the responsibility to serve as the lead SETA with the view to forge partnerships between SETAs and the public FET colleges intheWesternCape.TheFP&MSETAhascommencedwithpreparationsforthelaunchofitspartnershipwiththreeofthecolleges(FalseBayCollege, College of Cape Town and South Cape College) which willincludetheappointmentofSETAliaisonofficersandinternsbasedatthe FETcollegestofacilitatetheroll-outofSETAinitiatedprogrammesintheregion.TheFP&MSETAwillcontinuediscussionswithSETAsactivein the Western Cape region to establish further partnerships between SETAsandtheremainingFETcolleges.

DevelopmentofQualificationsTheFP&MSETAconcludedaservicelevelagreementwiththeQualityCouncilforTradeandOccupations(QCTO)whichresultedintheissuingof six delegation certificates to the FP&M SETA as a developmentqualitypartnerforQCTOoccupationallydirectedqualificationsintheclothing,textiles,footwear,leatherandprintingsub-sectors.Anumberof qualification development workshops were then held with theclothing,textiles,footwear,leatherandprintingsub-sectorsinordertoensurethatthecurrentSouthAfricanQualificationsAuthority(SAQA)registered qualifications are converted to the QCTO qualificationsformat,whichwillberegisteredinthe2013/2014financialyear.

Finally, the FP&M SETA submitted the following occupationalqualificationstotheQCTO:

• SheetfedLitho(Printing)• SewingMachineOperator(Clothing)• ClothingCuttingOperator(Clothing)• FootwearClosingOperator(Footwear).


CHALLENGES ManagementInformationSystem(MIS)Service delivery challenges were experienced as a result of theorganisation’s MIS which was deployed as a ‘stop gap measure’during the amalgamation process until a tender on a fully fledgedandintegratedMIScouldbecompleted.Theinterimsystemwasnotfullyequippedandintegratedtoallowforsmoothdeliveryofservices.Challenges relating to theMIS included the latepaymentof serviceprovidersanddiscretionaryandmandatorygrantbeneficiariesaswellas an inability to extract reliable skills planning data.Unfortunately,overall servicedelivery sufferedasa resultof thiswhich resulted innegativestakeholderperceptions.

TheMIStenderprocessitselfprovedtobeachallengeandtheSETAwascompelledtocancelthefirstMIStender.Thisresultedinalegalchallenge against the SETA, lodged by the current provider. At thetimeofreporting,thefinalisationofthesecondMIStenderwasbeingexpeditedwithaviewtohavingafunctional,integratedandefficientMIS up and running by August 2013.

SlowUptakeofAllocatedFundingBottlenecks have been experienced with respect to the uptake ofdiscretionary funding allocated to companies and service providers,whichresultedintheslowmovementoffundsandthisimpactedontheSETA’sperformanceandachievementofstrategicgoals.

VariousmeasuressuchastighteninguptheprovisionsofMemorandaof Agreement (MOAs) in relation to turnaround times as well asimprovingdirectregionalofficestaffinvolvementintheprocessingofMOAs,projectsmonitoringandinvoicinghavebeenexploredandtheimplementation thereof had already commencedby the endof the2012/13financialyear.Itishopedthatthesemeasureswillgoalongwaytowardsimprovingtheturnaroundtimesoncontractingandtheprocessingofpayments.

FUTURE PLANS

Baseline StudyThescopingoftheentireFP&Msectorwhich isduetotakeplace inthe2013/14financialyearisexpectedtoprovidetheFP&MSETAwithinvaluable baseline data thatwill enhance the quality of the SectorSkills Plan (SSP) going forward as well as promote more meaningful engagementwiththesectorandtheofferingofmorerelevant,currentand value-add training programmes.

CollaborationwithFETCollegesIn its collaborationwith theFET colleges, theFP&MSETAenvisagesa situationwheremuch closer andmutually beneficial relationshipswill be forged between itself, the FET colleges and the constituentemployers.Activitiessuchasthefollowingareenvisagedashavingthepotentialtotakerootinthisarrangement:

• Informed and goal-oriented student enrolment planning bytheFETcolleges,underpinnedbyindustryneedsasreflectedin the FP&M SETA SSP

• Wellco-ordinatedplacementoflearnerswithincompaniesforinternshipsandworkplaceexperiencefacilitatedbytheSETAwith the hope of subsequent employment

• Introductionoflecturerexchangeprogrammesthatwillensurethe relevance of programmes offered by FET colleges andprovide the trainers fromthese institutionswith continuousprofessionaldevelopmentopportunities

• Provision of FET colleges with access to cutting-edgetechnologythatisinuseatfactoryfloor.

APPRECIATION

IwouldliketotakethisopportunitytothanktheBoardforitsdirection,guidanceand support; themanagement and staff for their support,dedication and hard work as well as our stakeholders for theiroptimism,patienceandunwaveringloyaltytotheFP&MSETA.Thishasindeedgonealongwayinenablingustoaddanotherbuildingblocktoourorganisation,thusensuringthatamoreformidablefoundationislaidforthepurposeofensuringthattheactivitiestofollowinthenextfinancialyearandbeyondthriveandproducethedesiredfruits.

Bheki ZuluFP&M SETA31 May 2013



8. Fp&M Seta oFFICeS

TheFP&MSETAHeadOfficeandGautengRegionalOfficeissituatedatForum1B,2ndFloor,BraamparkOfficePark,33HoofdStreet,Braamfontein,Johannesburg, 2001. Tel: 011 403 1700.

TheFP&MSETAWesternCapeRegionalOfficeissituatedat3rdFloor,WestWing,PalmsCentre,SirLowryRoad,Woodstock,CapeTown,7925.Tel: 021 462 0057.

TheFP&MSETAKZNRegionalOfficeissituatedonthe2nd&3rdFloor,UmdoniCentre,28CromptonStreet,Pinetown,3600.Tel:0317024482.

pARt B: peRfoRMAnce infoRMAtion



1. StateMent oF reSponSIBIlItY For perForManCe InForMatIon

StatementofResponsibilityforPerformanceInformationfortheyearended31March2013

TheChiefExecutiveOfficer is responsible for thepreparationof theFP&MSETA’sperformanceinformationandforthejudgementsmadeinthisinformation.

The Chief Executive Officer is responsible for establishing and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability ofperformanceinformation.

Inmyopinion,theperformanceinformationfairlyreflectstheactualachievementsagainstplannedobjectives,indictorsandtargetsasperthestrategicandannualperformanceplanofthepublicentityforthefinancialyearended31March2013.

The FP&M SETA’s performance information for the year ended 31March2013hasbeenexaminedbytheexternalauditorsandtheirreport is presented on page 64 - 66.

Theperformance informationof theentity setout frompage16 topage 42 was approved by the Board.

Bheki ZuluActingChiefExecutiveOfficer31 May 2013


2. aUDItor’S report: preDeterMIneD oBJeCtIVeS

The AGSA currently performs the necessary audit procedures onthe performance information to provide reasonable assurancein the form of an audit conclusion. The audit conclusion on theperformance against predetermined objectives is included in thereport tomanagement,withmaterialfindingsbeing reportedunderthePredeterminedObjectivesheadingintheReportonotherlegalandregulatoryrequirementssectionoftheauditor’sreport.

Refer to page 64 to 66 for the AgSA’s report, published in Part E: ‘FinancialInformation’.

3. oVerVIeW oF tHe Fp&M Seta’S perForManCe

3.1. SERVICE DELIVERY ENVIRONMENT

TheFP&MSETA’sperformancewasgenerally satisfactory,withmostofthesettargetsmet.Theorganisationhasmadeanimpactinareasof rural development, youth development and partnerships with FET institutions,andinareasofworkerorinstitutionaldevelopment.

Theorganisationimplementedhighimpactprojectsintheruralareasof Mpumalanga, KZN, Limpopo and the Western and Eastern Cape. Occupationallydirectedprojects for theyouthwere implemented inareas like Umhlanga, Florida, Johannesburg and Nigel. A large number ofworkerswereofferedtraininganddevelopmentthroughstructuredlearning programmes such apprenticeships, learnerships and skills programmes.

during the period under review, the FP&M SETA engaged with the stakeholders through workshops, interviews and focus groups tocompiletheSSP.Valuable informationexchangetookplacebetweentheSETAandrepresentativesof the13sub-sectors.However, itwasgenerallyacknowledgedthat the industrialandbaseline informationavailable for the FP&M sector was outdated and incomplete. Anextensive baseline study is planned to be undertaken in the FP&M sectorduringthenewfinancialyear.TheSSPwasdeveloped,submittedtotheDHETandrecommendedforapprovaltotheMinisterofHigherEducationandTraining.


The FP&M SETA identified the lack of industry growth anddevelopmentstrategiesincertainsub-sectorsasamajorchallengeastheseindustrieslackedthecoherencetoassisttheSETAwithtargetedskills development interventions. The SETA took a decision to assistthe industries at the outset to look into the issues of future growth and development. Through the Strategy and CorporateGovernanceDepartment, a 6Ps (paper, pulp, printing, packaging, print media and publishing) strategy workshop was convened to address the abovechallenge.

Asaresultoftheworkshop,a‘6PsStrategyDevelopmentCommittee’wasestablishedandmandatedtolookintoindustryresearch,growthstrategiesandcollaborationeffortsinvolvingthepaper,pulp,printing,packaging,printmediaandpublishingsub-sectors.

The FP&M SETA has also been involved in the skills development strategies development processes of a number of provinces. InMpumalanga, the SETA is a signatory and a member of the Human ResourcesDevelopmentCommittee.Thiscommitteemanagesallskillsdevelopment issues in Mpumalanga.

IntheEasternCape,theSETAparticipatesintheEasternCapeSocio-Economic Consultative Council. The council looks into issues ofeconomicandskillsdevelopmentintheEasternCape.

The SETA further participates in the KZN Provincial Skills DevelopmentCommittee.

3.2. ORGANISATIONAL ENVIRONMENT

TheFP&MSETAwrappeduptheamalgamationof theMAPPP-SETA,FIETAandCTFLSETAandfinalisedtherestructuringofitsorganogramduringtheperiodunderreview.Mostpositionswerefullyfunctionalbymid-year.Theorganisationengagedinaprocessofdevelopinganoperationalbusiness-processmanualforthevariousservicesonoffer,andthetrainingthatwouldberequiredtoefficientlyimplementtheprocesseswasidentified.

3.3. KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES

ChangesinlegislationhadasignificantimpactontheoperationsoftheFP&M SETA during the period under review.

Legislation pertaining to the changing education and traininglandscapeandtheestablishmentofthenewQualityCouncilforTradesandOccupations(QCTO)resultedinthetransferofqualityassuranceresponsibilities from SAQA to the QCTO. In order to formalise thistransfertheFP&MSETAsignedaMOAwiththeQCTO,whichdelegatedthequalityassuranceresponsibilitiesandextendedtheaccreditationstatus of the FP&M SETA as an Education and Training QualityAssurance(ETQA)bodyuntil30September2012.

With effect from 1 October 2012, SETA ETQA ceased to exist in itscurrentform(recognitionasaqualityassurancebodyandaccreditationwith SAQA and a new dispensation for all SETA, quality assurancebodiesandtheQCTOwasagreedupon).Inordertodevelopthenewworkingpartnershipbetween theFP&MSETAand theQCTOand todefinetheir respectiverolesandfunctions, theFP&MSETAsignedaQCTOMOA.ThepartiestotheMOAundertooktoworktogetheronmatters pertaining to standards setting and quality assurance post-September 2012. The QCTO delegated certain quality assurancefunctionstotheFP&MSETAETQA.QualificationsthatfellwithintheFP&M SETA primary scopewere re-registered for a period of threeyearswithSAQA,withafurthertwo-yearteachoutperiod.

ChangesinthePPPF(PreferentialProcurementPolicyFrameworkActof2000)regulationsresultedinareviewofSupplyChainManagement(SCM) procedures in order to meet the requirements of the newregulations.

Thenew‘GrantRegulationsregardingmoniesreceivedbyaSETAandrelatedmatters’publishedintheGovernmentNoticeNo.35940dated3 December 2012 impacted significantly on the operations of theSETAandonskillsdevelopment intheFP&Msector.Mandatoryanddiscretionarygrantpoliciesandprocedureswerereviewedtomeettherequirementsoftheregulations.


4. perForManCe InForMatIon BY proGraMMe

PROGRAMME 1: ESTABLISHING A CREDIBLE INSTITUTIONAL MECHANISM FOR SKILLS PLANNING

Theintentionofthisprogrammeistoestablishacredibleinstitutionalmechanism for skills planning and partnerships with key deliveryforumpartnersamongsttheprovidercommunity,employers, labourunions and interested organised learner communities to enhanceskills planning holistically in the FP&M sector. The rationale is thatany human resources/skills planning should be complementedwithbetterdataandimprovedlabourmarketanalysis.TheFP&MSETAhas

toestablishitsownmechanismthatisalignedandfullycompliantwiththereportingrequirementsoftheDHETtoenhanceskillsplanninginthesector.ItisimportantfortheFP&MSETAtodevelopitsresearchcapacity in order to make accurate labour market projections toinform the FP&M SETA Sector Skills Plan. This would ensure thatinformationsources,withregardstothedemandandsupplyofskills, areco-ordinated.

Strategic objectives, performance indicators, planned targets and actual achievements

Programme Name: 4.1. Establishing a credible institutional mechanism for skills planning

Strategic ObjectivesActual Achievement 2011/12

Planned Target2012/13

Actual Achievement 2012/13

Deviation from Planned Target to Actual Achievement for 2012/13

Comment on Deviations

4.1.1: A skills matrix is developed for eachsectorintheFP&M SETA.

i. The FP&M SETA Skills Planning and ResearchDivisionhas developed a ResearchAgendaandhascommencedwithresearchactivitiesinaccordancewiththis agenda. This includedresearchfor the purpose of updatingtheSectorSkills. Plan.

(a)Amatrixcoveringboth horizontal andverticalskillsiscompletedbythe3rdquarter of 2012.

i. Completed a Labour market surveyincludingamatrixcoveringboth horizontal andverticalskillsrequirements per sector.

ii.Conductedfirmlevelsurveys,focusedgroup workshops and one-one interviews with industry experts coveringhorizontalandverticalskills–June/July 2012.

iii.UpdatedScarce&CriticalSkillsListandincludedskillsprioritiesintheupdatedSectorSkillsPlansubmittedto dHET by 30th November 2012.

Met the target - nodeviation.

Improved skills planning strategies andresearch(morebaseline surveys and skills audits insectors)tobeimplemented in the newfinancialyearto improve on this strategicobjective.



Key performance indicators, planned targets and actual achievements

Programme/Sub-programme Name: 4.1. Establishing a credible institutional mechanism for skills planning






4.1.1 (a) A matrix coveringbothhorizontal and verticalskillsiscompletedbythe3rd quarter of 2012.

i. The FP&M SETA submittedafinalSSP, update by 31st August 2011. The update was the result oftheconsolidationoftheSSPscompiledby the former SETAs (CTFL, FIETA and MAPPP-SETA).

ii. The FP&M SETA Skills Planning and ResearchDivisionhas developed a ResearchAgendaandhascommencedwithResearchactivitiesinaccordancewiththeagenda.Thisincludedresearchforthepurposeofupdatingthe SSP.

4.1.1 (a) A matrix coveringbothhorizontal and verticalskillsiscompletedbythe3rd quarter of 2012.

i.UpdatedScarce&CriticalSkillsListandincludedamatrix of horizontal andverticalskillsintheupdatedSectorSkillsPlansubmittedto dHET by 30th November 2013.

Targetachieved- nodeviation.

PROGRAMME 2: INCREASING ACCESS TO OCCUPATIONALLY DIRECTED PROGRAMMES

Theaimof thisprogramme is toestablishprojectsandpartnershipsto enable the relevant number of artisans to be trained, to qualifyand become work ready. Many South African learners are poorlyprepared toundertake further learningwhen they leave school andcannot access post-school education and training opportunities. Alargenumberofyouthandadultsarenotinemployment,educationor training.

The objective of this programme is to provide access (and funding)toadultsandyouthtoeducationandtrainingopportunitiesthatwillenable them to acquire a minimum qualification at level 4 of theNationalQualificationsFramework(NQF).

ThiswillincludeaccesstofoundationallearningprogrammesaswellasAdultEducation&Trainingprogrammes.



Programme Name: 4.2 Increasing access to occupationally directed programmes






4.2.1 Establish occupationallevelsineachsectorcompletewiththeirrespectiveproficiency/development standards.

Astatisticalanalysisof WSP / ATRs submittedby30June 2011 has been conductedandtheinformationhasbeenused as a base to inform WSP strategy development and implementationinthesector.

Projectsestablishedto address middle level skills in eachsector.

(a) The following programmes, whichmeetQCTOrequirements and supportkeyactionprogrammes of industrial strategies areputinplaceforeachFP&Msub-sectors:

i. An intermediary programmetocaterfor employees with less than a grade 12 qualification.

ii. A standard programme formatricandequivalent learnership.

iii.Anartisanallevelprogramme.

i. A list of FP&M SETAoccupationsqualifyingasartisantrades was published in the government Gazetteon31 August 2012.

ii.Occupationallydirectedqualifications(learnerships and skills programmes) that fell within the FP&M SETA primaryscopewerere-registered with SAQAandtheQCTOfor a period of three years with a further twoyearteach-outperiod.

iii.Discretionarygrant Funding Strategy (funding windows) aligned to meetthisstrategicobjective.

The target was met asoccupationallydirectedlearningprogrammes are registered with theQCTOandtheNationalArtisanModeratingBody (NAMB) for implementation.

Inadditiontomeetingthetarget,the following activitiestoreviewthe registered programmes commenced:

i.Completedscopingof Organising Framework for Occupations(OFO)for9sub-sectorsandsubmittedtoDHETby end January 2013

ii. In November 2012 the FP&M SETA Board approved internalETQAprojectstoaddressQCTOqualificationsdevelopment for theprintingandpackaging,clothing,furniture and forestry sub-sectorsforvariousoccupationsaligned to the OFO.








4.2.2ConductcomprehensiveRecognitionofPriorLearning (RPL) of employees with no minimumeducationentryqualifications.

Projectsestablishedto assist workers to enter and successfullycompletelearningprogrammes through RPLprocesses.

(a) develop RPL strategy.

(b) RPL assessments thatareelectronicand easy to use attheworkplaceandwhichtesteducationaswellasoccupationalstandards are rolled out (100 employed learners).

(c)Market&promote RPL – nationalroll-out.

(d) Establish RPL pilotprojectswithemployers.

i.DraftRPLPolicyandOperationalStrategyinplace–tobefinalisedinthenew year.

ii.4QCTOqualificationssubmittedforregistrationwithDHET,whichmakeprovision for RPL assessments.

iii. In November 2012 the FP&M SETA approved the RPL fixedfundingwindowandspecialprojectsto address the strategicobjective.

i.RPLPolicy&OperationalStrategyto be approved by FP&M SETA Board.

ii.QCTOqualificationsneedto be developed for everysector-specificoccupationmakingprovision for RPL processes.

iii.QCTOExternalSummativeAssessments to be developed in electronicformatforuseinworkplacesto support pilot RPL projectsthattesteducationaswellasoccupationalstandards.

i.SAQAfinalisedRPLPolicyandCriteriainOctober2012.

ii. development of QCTOqualificationsand External SummativeAssessment is criticaltosupportRPL strategy for thesectorandfasttracktheupskillingoftheFP&MsectorworkforcethroughRPLprocesses.


Programme Name: 4.2 Increasing access to occupationally directed programmes

Sub-Programme: 4.2.1 Establish occupational levels in each sector complete with their respective proficiency/ development standards. 4.2.1 (b)(i) The following learning programmes, which meet QCTO requirements and support key action programmes of industrial strategies are put in place for each FP&M industry:

Performance Indicator






AdultEducationand Training (AET) programmes: Workers entered.

209 workers were registered on AET levels 1-4 or equivalent programmes.

52 workers completedAETlevel1-4 or equivalent programmes.

200 employed learners entered AET programmes.

459 employed learners entered AET programmes.

259 Positivevariance:229,5%achievementreported. AET sectorprojectsincollaborationwiththe department of Agriculture,Forestryand Fisheries (dAFF) infourprovincesboosted the performanceforthisindicator.








Section13(1)Apprenticeships:Workers entered.

47employedSection13(1)apprenticeswere registered on artisanprogrammes.

180 employed learners entered Section13(1)Apprenticeshipprogrammes.

79 employed learners enteredSection13(1)Apprenticeshipprogrammes.

-101 Negativevariance:43.89%oftargetachieved.Slow uptake of apprenticeshipgrantsapproved by the FP&M SETA Board in 2011/12contributedtothenegativevariance.

The FP&M SETA Board approved a further 360 apprenticegrantsinthe2012/13financialyear to address this variance.

Section13(1)Apprenticeships:Workerscertificated.

52employedSection13(1)apprenticescompletedartisanprogrammes.

50 employed apprenticesonSection13(1)Apprenticeshipprogrammes certificated.

122 employed apprenticesonSection13(1)Apprenticeshipprogrammes certificated.

72 Additionaltarget–notreflectedonAnnualPerformancePlan (APP).

Positivevariance:244%achievementrecorded.

These apprenticeshipscommencedinprevious years and were inherited from the ex-SETAs. Apprenticeshipprogrammes range between two to three years in duration.

Section13(1)Apprenticeships:Unemployed entered.

54 unemployed Section13(1)apprenticeswereregisteredonartisanprogrammes.

180 unemployed learners entered Section13(1)Apprenticeshipprogrammes.

180 unemployed learners entered Section13(1)Apprenticeshipprogrammes.

0 NILvariance.Targetachieved.The FP&M SETA Board approved a further 581 apprenticeshipgrantsforSection13 (1) unemployed apprenticesinthe2012/13financialyear.









Section13(1)Apprenticeships:Unemployed certificated.

NIL unemployed Section13(1)apprenticescompletedartisanprogrammes.

50 unemployed learnersonSection13(1)Apprenticeshipprogrammes certificated.

64 unemployed learnersonSection13(1)Apprenticeshipprogrammes certificated.

14 Additionaltarget–notreflectedonAPP.

Positivevariance:128%achievementrecorded.

Marked improvement on this target when comparedtoaNILachievementin2012.

These apprenticeshipscommencedinprevious years and were inherited from the ex-SETAs. Apprenticeshipprogrammes range between two to three years in duration

Learnerships: Workers entered.

522 employed Section18(1)learners were registered on learnership programmes.

600 employed learners entered learnership programmes.

343 employed learners entered learnership programmes.

-257 Negativevariance:57,16%ofthetargetwasachieved.

Slow uptake of learnership grants approved by the FP&M SETA Board in 2011/12contributedtothenegativevariance.

The FP&M SETA Board approved a further 877 learnership grants in the2012/13financialyear to improve the performanceonthis target.








Learnerships: Workerscertificated.

329 employed Section18(1)learnerscompletedlearnership programmes.

300 employed learners on learnership programmes certificated.

356 employed learners on learnership programmes certificated.


Positivevariance:118,66%achievementrecordedagainsttarget.

Some of these learnerships completionsrelateto learnerships thatcommencedinthe previous year. Theseachievementshave been added tocurrentyearachievements.

Learnerships: Unemployed entered.

978 unemployed Section18(2)learners were registered on learnership programmes.

1,200 unemployed learners entered learnership programmes.

1,235 unemployed learners entered learnership programmes.

35 Positivevariance:102,92%achievementrecordedagainsttarget.

Theadditionallearnerships registrationsrelateto grants approved in thepreviousfinancialyears.

Learnerships: Unemployed certificated.

567 unemployed Section18(2)learnerscompletedlearnership programmes.

600 unemployed learners on learnership programmes certificated.

711 unemployed learners on learnership programmes certificated.



Some of these learnerships completionsrelateto learnerships thatcommencedinthe previous year. Theseachievementshave been added tocurrentyearachievements.









Skills Programmes: Workers entered.

708 employed learners were registeredoncreditbearing / SETA recognisedskillsprogrammesrelatingto management and technicalscarce/criticalskillsareas.

200 employed learners entered skills programmes.

619 employed learners entered skills programmes.

419 Positivevariance:309,5%achievementrecordedagainsttarget.

Inadditiontograntsallocatedintermsofthefixedgrantfunding windows, the FP&M SETA Board also approved fundingforspecialprojectsrelatingtoskills programmes for workers employed in the industry. This boosted the target for skills programmes.

Skills Programmes: Workerscertificated.

311 employed learnerssuccessfullycompletedcreditbearing / SETA recognisedskillsprogrammesrelatingto management and technicalscarce/criticalskillsareas.

125 employed learners on skills programmes certificated.

411 employed learners on skills programmes certificated.



Inadditiontograntsallocatedintermsofthefixedgrantfunding windows, the FP&M SETA Board also approved fundingforspecialprojectsrelatingtoskills programmes for workers employed in the industry. This boosted the target for skills programmes.








Skills Programmes: Unemployed entered.

628 unemployed learners were registeredoncreditbearing / SETA recognisedskillsprogrammesrelatingto management and technicalscarce/criticalskillsareas.

400 unemployed learners entered skills programmes.

326 unemployed learners entered skills programmes.

-74 Negativevariance:81,5%oftargetachieved.Theachievementsabove relate toprojectsforunemployed learners rolled over from the 2011/12financialyear.

Newprojectsrelatingto skills programmes for unemployed learners were only approved by the FP&M SETA Board in November 2012 and will be rolled out inthenewfinancialyear.

Skills Programmes: Unemployed certificated.

448 unemployed learnerssuccessfullycompletedcreditbearing / SETA recognisedskillsprogrammesrelatingto management and technicalscarce/criticalskillsareas.

225 unemployed learners on skills programmes certificated.

134 unemployed learners on skills programmes certificated.

-91 Additionaltarget–notreflectedonAPP.

Negativevariance:59,55%oftargetachieved.

Lateregistrationsof unemployed learners on the skills programme contributedtothenon-achievementofthis target.

Bursary Programmes: Workers entered.

18 employed learners were registered on (graduate) bursary programmes at HET orFETinstitutions.

120 employed learners entered bursary programmes.

22 employed learners entered bursary programmes.

-98 Negativevariance:18,3%oftargetwasachieved.Slowuptakebyworkplaceson bursary grants approved in 2011/12 by the FP&M SETA Board.

The FP&M SETA Board approved a further 126 bursary grants for employed learners in the 2012/13financialyear.









Bursary Programmes: Workerscertificated.

NIL employed learnerssuccessfullycompleted(graduate)bursary programmes at HET or FET institutions.

50 employed learners on bursary programmes certificated.

NIL employed learners on bursary programmes certificated.


Negativevariance:0%oftargetachieved.TheFP&MSETA has only been in existencefortwo(2)years.Thedurationof these bursary programmes range between two to four years.

Bursary Programmes: Unemployed entered.

125 unemployed learners were registered on (graduate) bursary programmes at HET orFETinstitutions.

200 unemployed learners entered bursary programmes.

199 unemployed learners entered bursary programmes.

-1 Negativevariance:99,5%oftargetachieved.

Insignificantvariance.

Bursary Programmes: Unemployed certificated.

NIL unemployed learnerssuccessfullycompleted(graduate)bursary programmes at HET or FET institutions.

100 unemployed learners on bursary programmes certificated.

8 unemployed learners on bursary programmes certificated.


Negativevariance:8%oftargetachieved.TheFP&MSETA has only been inexistencefortwoyears.Thedurationof these bursary programmes range between two to four years. To turnaround this target a new bursary strategy would have to be employed.

Post- graduate Bursary Programmes: Workers entered.

5 employed graduate students are assisted to enter post graduate programmes, includinghonours,mastersanddoctoralprogrammes in publishing, journalism,science,engineering and technologyasapplicabletotheFP&Msector.

5 workers entered post-graduate programmes.

5 workers entered post-graduate programmes.

0 NILvariance.Targetachieved.








Post-graduate Bursary Programmes: Unemployed entered.

10 unemployed graduate students are assisted to enter post-graduate programmes, includinghonours,mastersanddoctoralprogrammes in publishing, journalism,science,engineering and technologyasapplicabletotheFP&Msector.

10 unemployed learners entered post-graduate programmes.

NIL -10 Negativevariance.Nodiscretionarygrant budget allocatedforthistrainingintervention.Performancewas dependent onsecuringacollaborationagreement with an external bursary donor/sponsor. A high level skills strategy in collaborationwithhighereducationinstitutionstobedeveloped.

Workplaceexperience.

28 unemployed learners who have completedvocationalprogrammes have beenplacedforworkexperience/internshipsinentitiesintheFP&Msector.

50 unemployed learnersplacedinworkexperienceprogrammes.

27 unemployed learnersplacedinworkexperienceprogrammes.

-23 Negativevariance:54%oftargetachieved.

Slow uptake of work experiencegrantsbyFP&Mworkplacescontributedtothenegativevariance.

The FP&M SETA Board approved a further 153 work experiencegrantsfor unemployed learners in the 2012/13financialyear for FET/HET studentstoincreaseperformanceonthistarget.

The Board also approvedspecialprojectsinNovember2012 to further address this target – see Annexure 1.

To deliver on this target, the FP&M SETA should foster closercollaborationbetween stakeholders and learninginstitutions.









Internships: Unemployed entered.

Notapplicable. 40 unemployed learners entered internship programmes.

43 unemployed learners entered internship programmes.

3 Positivevariance:108%achievementrecorded.

Focussedengagement with FP&Mworkplacesandinstitutionsresulted in an overachievementofthis target.

ThisisaprioritisedtraininginterventionincertainFP&Msub-sectors,e.g.PrintMedia.

Internships: Unemployed certificated.

Notapplicable. 22 unemployed learnerscompletedinternship programmes.

22 unemployed learnerscompletedinternship programmes.


NILvariance.Targetachieved.

Sub-programme: 4.2.2 Conduct comprehensive Recognition of Prior Learning (RPL) of employees with no minimum education entry qualifications.







RPL skills programmes.

NIL 100 workers entered RPL skills programmes.

18 workers entered andcompletedRPLskills programmes.


Completionsreported are additionaltothetarget and are not reflectedontheAPP.

AfinalRPLpolicyandoperationalstrategyto be approved by the FP&M SETA Board in the new financialyear.Astrategy will be developed to set up RPLpilotprojectstoaddress this target.

The FP&M SETA Board further approved 77 skills programme grants for employed learners in the 2012/13financialyear to improve the performanceonthis target.








RPLApprenticeshipprogrammes (Section28).

The FP&M SETAreceived2 applicationstoconductSection28trade tests during the period under review.

50 workers completedSection28apprenticeshipprogrammes.

28 workers completedSection28apprenticeshipprogrammes.


Limited interest by FP&Mworkplacestoqualify employees throughSection28apprenticeshiproutes led to insufficientuptakeofavailable grants.

Furthercollaborationbetweenworkplaces,labour unions and the SETA will be required to address this target.

The Board approved specialprojectsinNovember 2012 to further address this target – see Annexure 1.

PROGRAMME 3: PROMOTING THE GROWTH OF A RESPONSIVE PUBLIC FET COLLEGE SYSTEM

NSdS III emphasises partnerships between dHET, SETAs, employers, privateprovidersandpublicFETcollegestocreateincreasedcapacitytomeetindustryneedsthroughoutthecountry.TheNationalCertificateVocational (NCV) and N-courses are recognised by employers asimportant base qualifications through which young people areobtaining additional vocational skills andwork experience, enteringthe labour market with marketable skills, and obtaining employment.

The FP&M SETA is in the process of identifying FET colleges withrelevant programmes and will put in place partnerships to offervocationalcoursesandworkexperience forFETcollege learners.AnFET research study will be conducted in the new financial year toinform the SETA’s FET strategy going forward.




Programme Name: 4.3 Promoting the growth of a responsive public FET college system






4.3.1 draw up a geographicprofileofeachsectorinthe FP&M SETA and link this to theFETcollegerepresentation.

FP&M SETA accredited9publicFETcolleges.

4.3.1(b)Informationon the enrolment capacityofeachFETtogether with its programmeofferingiscompiledandverified.

i.FETresearchsurveyquestionnaireandtermsofreferenceforFETresearchfinalised.

ii.FETresearchsurvey and budget to be approved by FP&MSETAExecutiveCommittee(EXCO).

FETresearchreportongeographicalmappingexercisetodeterminetheprofileofFETcollegesandtheircapacitytodeliver on FP&M sectorlearningprogrammes in all provincestobefinalisedinthenewfinancialyear.

InternalResearchUnit to be capacitatedtoundertakeresearchaligned to the strategicplanoftheFP&M SETA.

4.3.2 Establish geographicrepresentationingeographicareaswheresectoriseconomicandestablishrelationswiththeFETcolleges.

The FP&M SETA Board approved funding for the sectorprojectstobeconductedincollaborationwithFET/HETinstitutionsandISOEs.Includedin this group of institutionsare3ISOEs inherited from the former SETAs namely, dUT, CPUT andFurntech(seedetailsofinstitutionsundercommitted/voted funds).

5 partnership agreements were concludedwithFETstoofferFP&Msectorqualification.

3.2 (a) Strong workingrelationshipswithFETcollegesdeemed relevant to FP&Msectorsneedto be established andassistancewith the design of programmes that suit the needs of the SETA provided to theseFETcolleges.

Discretionarygrantbudget aligned to FET targets approved.Fourgenericandthreesector–specificMemoranda of Understanding (MOUs) signed with publicFETcollegestoaddress linkages and partnerships with FETcolleges.Bursary agreements between FP&M SETA, workplacesandFETinstitutionsareavailable.FETCollaborationFramework Model finalisedandapproved.DraftISOEStrategytobe approved in new financialyear.i. SETA-driven workplaceagreements between FETs/HEIs and employers.ii. FET/HEI – Employer/lecturerexchangeprogrammes.iii.WorkExperience/Internships: The Board approved workexperience/internshipprojectsin November 2012 to further address this target – see Annexure 1.

Targetachieved–nodeviation.








4.3.3 Work with FETs inallgeographicareas to promote theselectionofFETqualificationsamongstschoolsintherespectivegeographicareas.

The dHET appointed the FP&M SETA as the lead SETA in the Western Cape to openSETAofficesinFETcollegesinruralareas. The FP&M SETA Board has approved an internal projectofR550,000to implement the lead SETA FET model with West Coast FET College, Boland College, South Cape College, Northlink College, College Of Cape Town, False Bay College.

ii. FP&M SETA has beenclusteredwith other SETAs. ExpansionofnationalSETApresencein rural areas & townships through FETs through support of Lead SETA FET model.

-MarketingandPromotionofFP&M programmes delivered via FETs.

Collaborationagreements and projectsdevelopedwith other SETAs – to promote FP&M SETA presenceinFETcolleges.






Programme: 4.3 Promoting the growth of a responsive public FET college system

Sub-programme: 4.3.2 Establish geographic representation in geographic areas where sector is economic and establish relations with the FET colleges.







FETcollegesaccreditedand/or supported throughprojectcollaboration.

The FP&M SETA has accredited9publicFETcolleges:In KZN:• Umgungundlovu

FET College• ElangeniFETCollege• ThekwiniFETCollege• UmfoloziFETCollege

In gauteng:• WestcolFETCollege• TshwaneNorth

FET College• EkurhuleniEastCollege

In Limpopo:• CapricornFETCollege• SekhukuneFETCollege

ii. The FP&M SETA Board approved funding for thesectorprojectstobeconductedincollaborationwithFET/HETinstitutionsandISOEs.Includedinthisgroupofinstitutionsarethree ISOEs inherited from former SETAs namely dUT, CPUTandFurntech.

iii. 5 Partnership agreements were concludedwithFETstoofferFP&Msectorqualifications:• WESTCOLFETCollege• EkurhuleniEastFET

College• SekhukuneFETCollege• UmgungundlovuFET

College• UmfoloziFETCollege.

10PublicFETssupported.

11PublicFETssupported

Generic Collaboration FET MOUs• ElangeniFETCollege• ThekwiniFETCollege• Ungungundlovu

FET College• EkurhuleniEast

FET College.

Lead SETA FET Partnership• BolandCollege• SouthCape

College• FalseBayCollege• Collegeof

Cape Town.

Project Specific MOAs• WesternFETCollege

(WESTCOL)–TextileArtisanProgramme

• UmfoloziFETCollege–Pulp & Paper N-Course & NCV

Accreditation SupportWaterberg FET College - ExtensionofScope.

1 Positivevariance:110%achievementoftarget. Marketingand roll-out of collaborationand partnerships projectsresultedin an over-achievementagainst this objective.

TheResearchUnitwillconductageographicalmappingexerciseto determine the profileofFETcollegesandtheircapacitytodeliveronFP&Msectoroccupationallydirectedprogrammes.


PROGRAMME 4: ADDRESSING THE LOW LEVEL OF YOUTH AND ADULT LANGUAGE AND NUMERACY SKILLS TO ENABLE ADDITIONAL TRAINING

ManySouthAfricanlearnersarepoorlypreparedtoundertakefurtherlearning when they leave school and cannot access post-schooleducation and training opportunities. A large number of youth andadultsare“notinemployment,educationortraining”(NEET).


Programme Name: 4.4 Addressing the low level of youth and adult language and numeracy skills to enable additional training






4.4.1 An analysis ofthescaleofyoung and adult low language and numeracylevelsconductedandanactionplandeveloped.

The FP&M SETA has implemented an interim MIS for the management of financialandlearnerinformation.Annualreportsrelatingtothereportingperiod2010-2011 were submittedforthethree former SETAs at the end of August 2011.

The FP&M SETA submittedfourquarterly reports to the dHET as per the agreed deadline dates.

1 (a) A detailed reportonthescaleof young and adult low language and numeracylevelscompiled.

i. Informed by:

- dHET NEET statisticalreportsonyoung and adult low languagenumeracylevels

-QuarterlyLabourForceSurveysfromStats SA

- Newspaper Reports on youth unemployment.

ii.Discretionarygrantbudget approved to meetthisstrategicobjective.

Notachieved–researchsurveyonthescaleofadultliteracyandnumeracylevelstobe undertaken.

InternalResearchUnit to be capacitatedtoundertakeresearchaligned to the strategicplanoftheFP&M SETA.

1(b)AnActionPlanlinked to a budget for addressing the low levels of language andnumeracylevelscompiled.

i.CareerguidanceandvocationalinformationonFP&Mcareersandoccupationsavailable.

ii.Careerguidancebooklet developed and available on website.



Thisprogrammeisfocusedonassistingunemployedadultsandyouth(includingprimaryandsecondaryschool learners) tohaveaccess toeducationandtrainingopportunitiesthatwillenablethemtoacquireaminimumqualificationatlevel4oftheNQF.

IncludedarefoundationallearningprogrammesandAETprogrammes,as well as teacher training initiatives to enhance the quality ofeducationprovidedatschoollevel.








4.4.1continued: iii.FoundationalLearning programmes and adulteducationand training workplaceandentrepreneurship programmes promoted in the FP&Msector.

iv.Discretionarygrant funding strategy addresses target and budget forthisstrategicintervention.

4.4.2 Working partnersidentifiedandcollaborativepartnerships forged.

2 (a) Partnerships agreements put inplace.

Partnership agreements were facilitatedthroughthe approval of specialpilotprojectstoaddressnumeracyandliteracyskillsamongst the youth and adults. Theseprojectswere approved in November 2012:

i.Partnershipprojectwith Mangaung Municipality(YouthUnit) - 20 learners: R500,000.

ii. Singisi Forests - Toeducateprimaryschoolchildrenwithregardstoprotectingandconservingournatural indigenous forests – R22,230.









4.4.2continued: iii. Nkungumathe Youth development Forum (NPO) - Providing for a post-matricbridgingcertificatetoallowlearners to boost theiracademicperformancesinthesciences,languageandaccounting-50learners: R360,000.

iv. Edupeg: Support primaryschoolsin Eastern Cape, Western Cape and KZN to improve learnerperformance&teacherperformanceinnumeracy&literacy:152schools,52,698learners and 1,511 teachers–R1,8 million.

2 (a) Partnerships agreements put inplace.

AET partnership agreementsinplace.

Discretionarygrantagreements signed withworkplaces,adulteducationcentresandDAFF.






Programme Name: 4.4 Addressing the low level of youth and adult language and numeracy skills to enable additional training

Sub-programme: 4.4.2 Working partners identified and collaborative partnerships forged







1(b)Anactionplanlinked to a budget for addressing the low levels of language andnumeracylevelscompiled.

Notapplicable. 800 unemployed learners entered AET programmes.

400 unemployed learnerscompletedAET programmes.

320 unemployed learners entered AET programmes.

140 unemployed learnerscompletedAET programmes.

-480

-260

NegativeVariance:40%oftargetachieved.

Completionsreported are additionaltothetarget and are not reflectedontheAPP.

Thisindicatorwaslargely addressed throughprojectsconductedbyprivate providers as workplacesfocussedon the training of employed learners.In future, the SETA willinvestigatepartnerships with PublicAdultLearningCentres to address this target.

The FP&M SETA Board approved a further 1 000 AET grants for unemployed learners in the 2012/13financialyear to improve the performanceonthistarget along with a specialprojecttobeconductedbydAFF involving 428 learners.

ii. The FP&M SETA Board also approved anumberofspecialprojectsforNQFlevel1(clothingmanufacturing)occupationallydirectedAETprogrammes.


PROGRAMME 5: ENCOuRAGING BETTER uSE OF WORkPLACE-BASED SKILLS DEVELOPMENT

The FP&M SSP identified a number of key areas of critical skillsdemand in the FP&M sector, all of which affect the efficacy anddevelopmental competitiveness of the sector. These includeleadershipandmanagementskills.Thereisaclearlyexpressedneedfor enhancing leadership - not only in terms of supply, but also intermsofcontinuityofleadership.Therefore,theFP&Msectorshould

focustheirworkplace-basedskillsdevelopmentmorestrategicallyandshould address the re-skilling and updating of capacity in key areaswhere critical skills needs were identified. In addition, workplacesmustdevelop‘new’skills(relatingtonewprocessesandtechnology)toincreasetheircompetitivenessandremainsustainable.


Programme Name: 4.5 Encouraging better use of workplace-based skills development






4.5.1 Plan for optimumusageofworkplacesformulated in collaborationwithstakeholders.

due to the use of the interim MIS system and the unreliability ofSARSdatarelatingto the number of employees per levy payingfirm,theFP&M SETA was unable to establish the breakdown of levypayingentitiespersizecategoryand therefore we were unable to do a comparison.

4.5.1(b)Increasedrates of WSP and ATR submission and disbursement of mandatory grants.

TARGETS

40%smallcompanies.

60%mediumcompanies.

80%largecompanies.

i. The FP&M SETA have put systems inplacetocaterforcomparativereportingandaccuratecapturingof employment statisticsinthenextfinancialyear.

ii. WSP/ATR statisticalanalysison submissions per regionandsectorsubmittedtoFP&MSETA Board.

iii.SectorSkillsAdvisor Model developed to supportthisstrategicobjective.

iv. Approved discretionarygrantbudget to broaden WSP/ATR Strategy.

v. Regional workshops held to promote mandatory grant submissions. This wascomplimentedbycompanyconsultationvisits.



Inaddition,theFP&M SETA will develop and implement WSP/ATR & PIVOTAL Report Management strategy, to ensure mandatory grant targets are met and broadened within theFP&Msector.








4.5.2 Career Management promoted at workplaces.

4.5.2 (a) Career Management ImplementationAgreements put inplace.

i. WSP/ATR analysis reportonverticaland horizontal skills requirements persub-sectorcompletedinJune/July 2012.

ii.QCTOqualificationsubmissions make provisionfornationaloccupationalpathingframework (NOPF) alignedtoworkplacerequirements.

iii. Career paths are mapped to qualificationsandcommunicatedeffectivelythroughthe FP&M SETA careerguidancebookletcontributedto improved relevanceoftrainingand greater mobility and progression.

iv.Discretionarygrant MOAs, Learnership, Apprenticeship&Skills Programme Agreements make provisionforcareerorientationanddiscussionoflearningpathways with learners.

v.Discretionarygrantfunding target the implementationof this strategy, withspecificfocustodevelopmanagement and leadership skills for the FP&M industries aimedatcontinuousprofessional development.

Met target – nodeviation.

Nil.




Programme Name: 4.5 Encouraging better use of workplace-based skills development

Sub-programme: 4.5.1 Plan for optimum usage of workplaces formulated in collaboration with stakeholders







4.5.1(b)Increasedrates of WSP and ATR submission and disbursement of mandatory grants.

FP&M SETA was unable to establish the breakdown of levypayingentitiespersizecategoryand therefore we were unable to makeaperformancedetermination.

40%ofsmallcompanies.

60%ofmediumcompanies.

80%oflargecompanies.

340smallcompanies.

371 medium companies.

330largecompanies.

Targetnotachieved. Duetoinsufficientbaseline data and the unreliability of SARSdatarelatingto the number of employees per levy payingfirm,theFP&M SETA was unable to establish the breakdown of levypayingentitiespersizecategoryand therefore we were unable to makeaperformancedetermination.TheFP&M SETA has put systemsinplacetocaterforcomparativereportingandaccuratecapturingoflevypayingentitiesand employment statisticsinthenextfinancialyear.

Researchplansarealsoinplacetoconductadetailedbaseline study for theFP&Msector.


PROGRAMME 6: ENCOURAGING AND SUPPORTING COOPERATIVE, SMALL ENTERPRISES, WORKER INITIATED, NGO AND COMMUNITY TRAINING INITIATIVES.

The FP&M SSP identified a number of key areas of critical skillsdemand for cooperatives, small enterprises, worker-initiated, NGOandcommunitytraininginitiatives,allofwhichaffecttheefficacyandsustainability of these enterprises.

This programme aims to provide support to cooperatives, NGOs,communitybasedorganisations(CBOs)andsmallenterprises(SMMEs)

through the funding of skills development and training projects toexpandthebusinessandtechnicalskillscapacityoftheseorganisationsand to contribute to sector economic and employment growth bycreatingopportunitiesforthecreationofnewventures.


Programme Name: 4.6 Encouraging and supporting cooperative, small enterprises, worker initiated, NGO and community training initiatives.






4.6.1 A plan is put in placeforidentifyingandsupportingcooperatives,smallenterprises, worker initiated,NGOsandcommunityinitiativeswithin the FP&M sector.

4.6.1(a)Cooperative,small enterprise, workerinitiated,NGOandcommunitytraininginitiativeseligible for funding areidentifiedandprovided with the necessarysupport.

i.10%ofDiscretionaryGrantbudgetallocatedtorural development.

ii.CollaborativeclusteringmodelofSMMEsfinalised.

iii.Discretionarygrant funding window addresses training and skills development capacityinco-operatives,smallbusinesses, NgOs, communityandworkereducationinitiativescontributingtoeffectivetrainingofyouth and adults.

iv. In November 2012 the FP&M SETA Board approved specialprojectfunding for six small businesses (SMMEs), sevencommunitybasedorganisations(CBOs),nineco-operativesandfivenon-governmental organisations(NGOs)– see Annexure 1.






Programme Name: 4.6 Encouraging and supporting cooperative, small enterprises, worker initiated, NGO and community training initiatives

Sub-programme: 4.6.1 A plan put in place for identifying and supporting cooperatives, small enterprises, worker initiated, NGOs and community initiatives within the FP&M sector







4.6.1 (a) Cooperatives,smallenterprises, worker initiated,NGOandcommunitytraininginitiativeseligibleforfundingareidentifiedand provided with thenecessarysupport.

The SETA has embarked on sub-sectorinitiativesto determine the skills needs of the sub-sectorsintheFP&Msector.Thediscussionsinvolvedparticipationfromunions, employer organisations,training providers and the department of Trade and Industry (dTI). These sub-sectorinterventionswill feed into the development of an overall strategy to address the needs of thesector.

20co-operatives,small enterprises, workerorganisations,NgOs, CBOs supported.

87organisationssupportedofwhich:

27 wereco-operatives

31 were small businesses

29 were CBOs / NgOs.

67 Positivevariance:435%achievementrecorded.

Theorganisationslisted were assisted through theallocationofDiscretionaryFundallocationsfortheimplementationofspecialprojects.

An overwhelming number of applicationswerereceivedandtheSETAallocatedprojectfundingtothoseprojectsthatwere aligned to its strategicobjectives.


PROGRAMME 8: BUILDING CAREER AND VOCATIONAL GUIDANCE

ForFP&Msectorlearnerstosucceedtheyneedtobeguidedpriortoenrolmentonbothbestmatchoftheir interestandtheirabilitiestooccupationalrequirements,aswellasbestprospectsforemploymentanddecentremuneration.Informationgatheredandsupportservices

generated need to be synchronised centrally and made availablenationally.Tothisend, theFP&MSETAhasparticipated in identifiedcareer exhibitions across the provinces and has made informationavailableoncareeropportunitiesintheFP&Msector.


Programme Name: 4.8 Building career and vocational guidance






4.8.1Acareermanagement andvocationalguidancestrategyisdeveloped.

An FP&M SETA careersinformationbrochurehasbeencompiledandtheSETAparticipatedinvariouscareerpublicationsduringthe period under review. The FP&M SETAhascompiledacomprehensivecareersguide,whichiscurrentlyindraftformatandawaitingcommentfromindustry. The booklet will be published in thenewfinancialyear.

4.8.1(a)Increasedinterest in FP&M SETA training programmes shown by young people throughanincreaseddemand for support byconstituentstakeholders.

DiscretionaryGrantfunding strategy aligned to meet this strategicobjective.Specialprojectswereapproved by the Board in November 2012 to support this strategicobjectiveincollaborationwithstakeholders – see Annexure 1.

Targetachieved-nodeviation.

Targetachieved-nodeviation.

4.8.2LifeOrientationeducatorsofschoolstargeted for the pipelineprojectandSdFs trained.

The FP&M SETA participatedinsevencareerexhibitions.

Careerinformationmade available to secondaryschoolsduringidentifiedcareerexhibitions.

Thefollowingspecialprojectswereapproved by the Board in November 2012 to support this strategicobjective:

i. FP&M SETA: Chairman’s Bursary -careerguidanceinitiativetargetingoneruralschoolper year to raise awarenessofcareeropportunitiesintheFP&Msectorandtoestablish linkages between the learners and the industry / employers: R500 000.




Programme Name: 4.8 Building career and vocational guidance

Sub-programme: 4.8.2 Life Orientation educators of schools target for the pipeline project and SDFs trained.







Careerinformationmade available.

The FP&M SETA participatedinsevencareerexhibitions:

• MandelaDayCelebrations(Lusikisiki)

• UmkhabatiniCareer Roadshow Camperdown

• EmboBusinessand Employment Hub Careers InformationFair(Hillcrest)

• OasisofLifeFamilyChurchExhibition(diepkloof)

• LearnershipAwareness Expo held at Wadely Stadium (Edenvale)

• EducationIndaba(Ulindi)

• SouthWestgauteng College Job Fair and Career Expo.

20secondaryschoolsreachedviafiveidentifiedcareerexhibitions.

Learners in 79 secondaryschoolsreachedthroughparticipationinthefollowing seven careerexhibitions:

• MandevilleCareer Expo for disabled Learners, Johannesburg, gauteng

• CareerExpo- Merebank, durban KZN

• DHETCareerExhibition-Taung, North West

• DHETCareerExpo-MitchellsPlain Western Cape

• TswaneUniversity Expo - Mamelodi Campus, Pretoria, gauteng

• DHET/DeputyPresident Career day, Ndwedwe, KZN

• LimpopoUniversity Career Expo, Polokwane, Limpopo.

59secondaryschoolsandtwocareerexhibitions.

Positivevariance.

The SETA was inundated with requests from communities,privateorganisationsand government departments to participateincareerinformationevents.

Note:DetailedfinancialinformationrelatingtotheaboveperformancereportisincludedinNote26oftheAnnualFinancialStatements(AFS),on page 97 of this report.


SERVICE DELIVERY IMPROVEMENT PROGRAMME

Improvementofservicedeliveryisacontinuous,progressiveprocessand will impact on the achievement of the core objectives of ourorganisation as it relates to the core mandate of NSDS III to thefollowing extent:

• Service Delivery: The FP&M SETA is committed to improvingservices rendered by fostering partnerships and collaborationwith FP&M SETA constituent firms, education and trainingprovider institutions, national and provincial governmentdepartments, SETAs and other public entities by concludingpartnership agreements/MOUs through an extensive consultationprocess.Allagreementswilloutlineperformancedelivery conditions to mutually meet the objectives of allparties. All agreementswill be reviewed annually tomonitorachievement thereof. The measurement of service deliverythroughtheCustomerSatisfactionSurveywillserveasabasisof continuous process improvement and the development ofanactionplantobeimplementedbythemanagement.Overall goal: To support the SETA to achieve their key objectives.

• Good Corporate Governance: In order to improve corporategovernance capacity all members of the Board and seniormanagementwillbeaccordedopportunitiestoattendtrainingand induction sessions. These sessions would equip theBoard members and senior management with the necessaryinformationtoensuregoodunderstandingoftheorganisation’sstrategy,objectivesandoperationalandstrategicrisks.

• Development and Review of Policies and Procedures to enhance integrated planning and compliance: The Business andOperationalStrategyoftheFP&MSETAistobere-alignedto QCTO regulations and processes. In order to enhanceperformancedelivery theQualityManagementSystemof theSETA will be reviewed annually in order to ensure an annual updateofallpolicies,proceduresandprocessflowsthatrelatetothebusinessoperationsoftheSETA.Thefocuswillalsobetoensurecompliancewithallrelevantlegislation.

• Human Resource Development: In order to ensure that the highest levels of efficiency are maintained throughout theorganisation, skills development plans will be implemented,which will enhance the skills and capacity of staff to meetthe needs of the core objectives of the organisation and thekey objectives of National Skills Development Strategy III.The implementation of a Staff Performance ManagementSystemwillfocusstaffondeliveringahigherqualityservice,asperformanceimprovementisatthecoreofthissystem.

• Financial Management: The FP&M SETA aims to improve financialmanagementand capacitybyensuring thatfinancialrisksareeliminated.Budgetsmustaddress thekeyobjectives of NSdS III.

• Buildings and Offices: Whilst a limited budget is available for leaseofbuildingsandimprovingthebuildinginfrastructure,themaintenanceofthephysicalinfrastructurewillbeaddressedinorder of priority.

• Marketing and Communication: Strategies will be developed topromoteandmarketthekeyobjectivesofNSDSIIIfromtheperspectiveoftheFP&MSETA.

• Projects:DiscretionaryGrantfundingwindowcriteria,guidelinesand costsperprogrammewill be reviewedandmustaddressthesectoralneedsofthesectorandthekeyobjectivesofNSDSIII.

Management Approach in Providing Leadership in Ensuring Targets are Met

Management toprovidestrategic leadership toensureeffectiveandefficientimplementationoftheSETA’sstrategicplan,theSSPandtheNSDSIII.Thiswillbedonethrough,interalia,thefollowingactions:

• Identifyingandmanagingrisks• Providingleadershipanddirectionindevelopmentofresearch

priorities,plansandprogrammes• Implementing a Quality Management System to address

businessoperationsofdepartments;• Liaising,partneringandcollaboratingwithkeystakeholdersto

promotethebusinessstrategyoftheorganisation• Communicatinggoals,objectives,indicatorsandtargetsofthe

plantotheorganisation’sconstituentsandexternalstakeholders• Taking advice and guidance on key strategic issues from the

ExecutiveAuthorityoftheFP&MSETA• Ensuring compliancewith all relevant legislation that impacts

onthebusinessandoperationalmanagementoftheSETA• Ensuringcommitmenttofrugal,prudent,effectiveandefficient

financial management and planning in addressing targetsaligned to the budget

• Providing a base fromwhich progress can bemonitored andmeasuredandestablishingamechanismforinformedchangeswhen needed.

The FP&M SETA Performance Management Policy makes provisionfor a rigorous staffperformancemanagement systemwhich covers,amongstmanyaspects,thefollowing:

• Performanceagreements• Performanceappraisals• Provision of feedback, including measures to deal with poor

performance.

The provisions of this policy will be applied stringently in order toensure that the FP&M SETA meets the NSdS III goals that it has committeditselfto.


5. SUMMarY oF FInanCIal InForMatIon

5.1 REVENUE COLLECTION

2012/2013 2011/2012

Sources of revenue

Estimate Actual Amount Collected

(Over)/Under Collection

Estimate Actual Amount Collected

(Over)/Under Collection

R’000 R’000 R’000 R’000 R’000 R’000

SdL 312,708 263,316 49,392 236,835 274,630 (37,795)

PenaltiesandInterest

2,876 2,348 528 1,792 2,853 (1,061)

Investments 16,798 21,295 (4,497) 9,768 18,664 (8,896)

donor Funding (TLS)

4,717 6,441 (1,724) 17,404 11,801 5,603

Other Revenue - 171 (171) - 146 (146)

Total 337,099 293,571 43,528 265,799 307,948 (42,149)


During the current financial year the FP&M SETA received R263,3 million in skills development levy (SDL) income. Revenuewasanticipatedtobemuchhigherduringtheyear.However,duetothe amalgamation of the SETA some SDL income has not yet beentransferred to SETA 04 (FP&M SETA) as the companies contributingthe SDL were considered as ‘unclassified’ by the DHET and as aresultwerelodgedin‘SETA99’.ThishasbeenreportedtotheDHET.However,thesecompaniesremainunclassifiedandhavenotyetbeentransferred to the FP&M SETA.

SDL income has further been reduced by R6,9 million due to anoverpaymentmadebySARSwhich included theUIFpayments.Asaresultoftheover-payment,aprovisiontoreducethelevyincomehasbeen reported at year-end.

AsaresultoftheundercollectionofrevenueandadelayintheDHETsubmittingtheSDLdownloadfilestotheFP&MSETAnotallqualifyingcompanies have been paid their mandatory grants. The undercollection of revenue has also resulted in reduced administrationincome.

PenaltiesandinterestamountingtoR2,3millionwerereceivedbytheFP&M SETA as a result of late payment of SdL by employers to SARS.

Investment income exceeded budget, which was based on theassumptionthatthemajorityofdiscretionaryfundingwouldbespentduring the period under review. However, this did not materialise due toadelay in thesigningofMOAsbetweentheprojectbeneficiariesandtheFP&MSETA.DiscretionaryfundingcouldonlybecommittedoncethefundsandSDLdownloadswerereceivedfromtheDHETbutduetothedelayinreceivingtheSDLdownloads,anincreasedamountof funds became available to transfer to the SETA’s Corporationfor Public Deposits (CPD) accountwhich resulted in an increase in interest earned.

DonorfundingamountingtoR6,4millionwasreceivedtofundtraininginterventions approved in termsof the Training Layoff Scheme. ThefundingwasreceivedfromtheDHET,UIFandtheWholesaleandRetail(W&R) SETA.

Other revenue of R171,000 was generated from fees paid by learners tore-writeexaminationsrelatingtoapprenticeshipprogrammes.

5.2 CAPITAL INVESTMENT, MAINTENANCE AND ASSET MANAGEMENT PLAN

The followingprogresswasmadewith regards to implementing theFP&MSETA’scapital,investmentandassetmanagementplan:• Duringthereportingperiod,allexcessfundsweretransferred

on amonthly basis to the SETA’s CPD account held with theReserve Bank. The excess funds were based on monthly cash flow reports. All interest has been capitalised on a monthly basis.

• Intermsof theassetmanagementplan,redundantorbrokenassetswereidentifiedandwritten-offduringtheyear.

• During the financial year the FP&M SETA budgeted for theprocurementofvideoconferencingequipmenttothevalueofR500,000toreducetravelcost.ThepurchaseoftheequipmenthasbeendelayedduetotherelocationoftheFP&MSETAheadofficeandCapeTownregionaloffice.TherelocationexerciseisanticipatedtobecompletedbytheendofJune2013.

Listedbelowaredetailsofhowassetholdingshavechangedovertheperiodunderreview,includinginformationondisposals,scrappingandlossduetotheft:

• During the year assets valued at a cost of R113,876 andaccumulateddepreciationofR109,123werewritten-offastheywere redundant.

• AlaptoptothevalueofR8,000wasstolenduringtheyear.Thiswas reimbursed by the SETA’s insurers.

The following measures were taken to ensure that the FP&M SETA’s asset register remained up-to-date during the period under review:• Theasset registerwasupdatedona regularbasis, taking into

account all redundant assets and any additions to assets. Allassets were assigned an asset number and assets were also insured immediately upon delivery.

ThecurrentstateoftheFP&MSETA’scapitalassetsisasfollows:• 95%ofassetsareinagoodconditionwhiletherestoftheassets

(5%)areinafairstate.

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1. IntroDUCtIon

Corporate governance embodies processes and systems by whichpublicentitiesaredirected,controlledandheldtoaccount.Inadditionto legislative requirements based on a public entity’s enablinglegislation,andtheCompaniesAct,corporategovernancewithregardstothepublicentitiesisappliedthroughthepreceptsofthePFMAandrun in tandemwith the principles contained in the King Report onCorporateGovernance.

Parliament,theExecutiveAuthorityandtheAccountingAuthorityofthepublicentity(inthiscasetheFP&MSETABoard)isresponsibleforcorporategovernance.

2. portFolIo CoMMIttee

FP&M SETA appeared before the Portfolio Committee on HigherEducation and Training on the 7th November 2012 to present onits 2011/2012 annual report. Amongst the areas that the PortfolioCommitteeshowedaninterestinandwhichwereservedaspointersto the SETAonwhatwas seen tobe critical areas for improvementwere the following:• MeticulousmanagementofSETAfundedprojectsincludingthe

keepingofrecordsonthedemographicsofbeneficiaries• Conductofduediligenceonserviceproviderstowhomfunds

andbusinessopportunitiesareallocated• Thoroughinterrogationofperformancereportswithaviewto

establishifthedesiredimpactwasbeingmadeinrelationtotheprioritiesthathavebeensetbyGovernment.

Efforts have been made during the 2012/2013 financial year toincorporate into the business operations of the FP&M SETA thedirectivesandadvicegivenbythePortfolioCommitteeonthevariousissuesincludingtheonesstated.

3. tHe Fp&M Seta BoarD

INTRODUCTION

The FP&M SETA is governed by its constitution which provides an‘institutional framework for the SETA to develop and implementnational, sectoral andworkplace strategies, inorder todevelopandimprovetheskillsoftheSouthAfricanworkforce’.ThemembersoftheFP&MSETABoardareappointedintermsofthisconstitution.

pARt c: GoveRnAnce

The FP&M SETA Constitution makes provision for 15 members(an independent chairperson, six (6) employer and six (6) labourrepresentativesandtwo(2)ministerialappointees).Atthebeginningofthe2012/13financialyear,theBoardwasconstitutedasreflectedabove,butbytheendof2012/13fourvacanciesexisted.

The Board met five times during the period under review andparticipated with the FP&M SETA management team in a two-dayworkshopinAugust2012toprovideinputintothestrategicplanningprocesses of the SETA for the 2013/14 financial year. Meetings oftheBoardwereconductedinlinewiththeproceduressetoutintheConstitution and duties were carried out in a fair and responsiblemanner with the necessary input and support of its committees,i.e. Executive, Audit, Governance and Strategy, Finance and Projects, Quality Assurance and Human Resources and RemunerationCommittees.

TheFP&MSETABoardandcommitteessupporttheprincipleofgoodcorporategovernanceascontainedintheKingIIIReport.

The role of the FP&M SETA Board is as follows:

• governandmanagetheSETAinaccordancewiththePFMA,theActandanyotherapplicablelegislation

• ensure that the SETAachieves itspredeterminedobjectivesand other targets

• provide effective leadership and ensure that the SETAimplements the goals of the NSDS and the PerformanceAgreement with the Minister

• providestrategicdirectionfortheSETA• liaisewithstakeholders• ensure that the SETA complies with the relevant statutory

requirementsandtherequirementsofitsconstitution• manageinstitutionalrisk• monitortheperformanceoftheSETA• ensurethatitsmembersandthemembersofthecommittees

establishedbytheBoardcomplywiththeCodeofConductsetoutinAnnexure2oftheFP&MSETAConstitution.


COMPOSITION OF THE BOARD

Name DesignationDate Appointed

Date Resigned Qualifications

Area of expertise

Other Board / Directorship

Other Committees

No. of Meetings Attended

Sipho Ngidi Independent Chairman

1 April 2011 Not applicable

BachelorofAdministration

Industrial Relationsdevelopment Programme

BachelorofCommerce(Honours) Economics

Finance

Human ResourcesManagement

Industrial Relations

Ithala Limited

Ithala Limited Human ResourcesandRemunerationCommittee

ReatileTimriteSocialandEthicsCommittee

Governance& Strategy Committee

ExecutiveCommittee

6 of 6

Johann Baard Non-ExecutiveMember

1October2011

6March2013

BachelorofArts (Honours)

Industrial Relationsdiploma Programme

AdvancedProgramme in Industrial Relations



Notapplicable Human Resources(HR) & RemunerationCommittee

2 of 5

david Bowen Non-ExecutiveMember

1October2011

Not applicable

Bachelorof Arts (Education)

Advanceddiploma in Education

Masters in Education

Training & development

Finance

Management

Notapplicable Finance&ProjectsCommittee

ExecutiveCommittee

6 of 6

daphne Erasmus

Non-ExecutiveMember

1October2011

Not applicable

BachelorofArts (Law)

Masters in SecurityStudies

Management development Programme


BlackEconomicEmpowerment

Skills development and TrainingEmployment Equity

SATU Board of Trustees Pension and Provident Funds

Notapplicable 3 of 6


COMPOSITION OF THE BOARD continued:



Area of expertise


Other Committees


DerickFredericks

Non-ExecutiveMember

1October2011

Not applicable

Printers Mechanic

Flexible PackagingMachineMinder

diploma in Industrial Relations

Certificatein Audit Learning in the Workplace



Notapplicable HR & RemunerationCommittee

ExecutiveCommittee


Finance&ProjectsCommittee

6 of 6

Roger godsmark

Non-ExecutiveMember

1October2011

Not applicable

BachelorofScience(Honours) AgriculturalEconomics

Economics

Finance

Notapplicable Governance& Strategy Committee

Audit Committee

5 of 6

Susan Khumalo

Non-ExecutiveMember

1October2011

Not applicable

grade 12 Labour Relations



5 of 6

Andre Kriel Non-ExecutiveMember

1October2011

Not applicable

BachelorofSocialScience

Labour Relations


Notapplicable ExecutiveCommittee

3 of 6

TandileMaliti Non-ExecutiveMember

1October2011

30October2012


Notapplicable HR & RemunerationCommittee


3 of 3

MichaelMokoana

Non-ExecutiveMember

1October2011

30 May 2012

grade 12

FoundationCertificate

Labour Relations

Skills development

Notapplicable Finance&ProjectsCommittee

ExecutiveCommittee

HR & RemunerationCommittee

2 of 2

pARt c: GoveRnAnce




Area of expertise


Other Committees


devaranie Naidoo

Non-ExecutiveMember

1October2011

Not applicable


Clothing Bargaining Council(KZN)

QualityAssuranceCommittee

4 of 6

MichelleOdayan

Non-ExecutiveMember (Ministerial Appointee)

1October2011

Not applicable

BachelorofArts (Law) LLB

AdvocateofHigh Court of SouthAfrica

Law

Finance

Strategy

Governance

ProjectManagement

Human Resourcesdevelopment

Organisationaldevelopment

gender Mainstreaming

Court-Consult Africa(Pty)Ltd

Indiba-Africagroup (Pty) Ltd

MTR Investments (Pty) Ltd

Not applicable

4 of 6

Sipho Sono Non-ExecutiveMember (Ministerial Appointee)

1October2011

14 September 2012

BachelorofCommerce(Accounting)

Chartered AccountantSA

Advanceddiploma in Banking

Finance

Audit

Trans Caledon Tunnel Authority

ChemicalSpecialitiesLtd.

Not applicable

0 of 2

Mike Truelock

Non-ExecutiveMember

1October2011

Not applicable

Nationaldiploma in Organisation&Work study

Nationaldiploma in Personal Management

Industrial Relationsdiploma Programme

Management development Programme

Organisationaldevelopment


Management

Learning and development

Santa Barbara Home Owners Association

TruelockAdventurescc

HR & RemunerationCommittee

ExecutiveCommittee


5 of 6


pARt c: GoveRnAnce

COMPOSITION OF THE BOARD continued:



Area of expertise


Other Committees


Brian Wafawarowa

Non-ExecutiveMember

1October2011

Not applicable

BachelorofArts (Honours)

Masters in Literature

ExecutiveMasters in Business Administration

Masters of Business Leadership

Management

Publishing



3 of 6

COMMITTEES

Committee No. of meetings held No. of members Name of members

ExecutiveCommittee 7 5 Sipho Ngidi (Chairman)david BowenDerickFredericksAndre KrielMikeTruelock

Governance&StrategyCommittee 1 9 Sipho Ngidi (Chairman)Abieda AbrahamsDerickFredericksRoger godsmark Susan Khumalo TandileMaliti(resigned)Jane MolonyPaul TheronBrian Wafawarowa

Finance&ProjectsCommittee 4 10 Roshan Barathdavid BowenGrahamChoice(resigned)DerickFredericks(Chairman)Susan KhumaloPatrickLacyJerry MakhanyaMichaelMokoana(resigned)devaranie NaidooMikeTruelockBrian Wafawarowa


Committee No. of meetings held No. of members Name of members

QualityAssuranceCommittee 4 9 Abieda AbrahamsJai deepnarainMatseliso MasimulaJerry Makhanyadevaranie Naidoo (Chairperson)Pamela NaidooTheresaOttoRashnee RambajanTania RhodeMymoena Williams

HR&RemunerationCommittee 7 9 Johann BaardFrans BarnardDerickFredericksSyriana MaeselaTandileMaliti(resigned)MichaelMokoana(resigned)Rashnee RambajanMikeTruelock(Chairman)Mymoena Williams

REMUNERATION OF BOARD MEMBERS

The remuneration structure used by the FP&M SETA is based onNationalTreasuryguidelinescommunicatedtotheSETAsin2011andis reviewed annually.

Boardmembersqualifyingforremunerationareclassifiedasfollows:• IndependentBoardmembersappointedbytheMinister• Board members not directly employed by the employer or

labourconstituenciestheyrepresented.

All Boardmembers including those qualifying for remuneration arere-imbursed for out-of-pocket expenses incurred in fulfilling theirdutiesasBoardmembersinlinewiththeFP&MSETAFinancialPolicies andProcedures.

Duringtheperiodunderreview,thefollowingBoardmembersreceivedremuneration/reimbursements:

Name RemunerationOther

allowance

Other reimburse-

ments Total

Sipho Ngidi 153,843 - 5,205 159,048

MichelleOdayan 53,606 - 1,011 44,997

Johann Baard - - 31,279 31,279

DerickFredericks - - 4,147 4,147

Sipho Sono* 15,266 - 732 15,998

Note: Mr Sono received payment for meetings attended during2011/2012.

BOARD EVALUATION

A Board evaluation process facilitated by an external party wasundertaken towards the end of the year under review. The purpose for undertaking this exercise was that of identifying areas of goodpracticeaswellasthosefordevelopmentthatrequirecloseattentionin the organisation’s bid to promote good governance and ongoingenhancementoftheBoard’scapabilitytoexecuteitsfiduciaryduties.

4. rISK ManaGeMent

A rigorous process to update the FP&M SETA Risk Profile and todevelop an integrated Risk Management Framework was undertaken during the 2012/2013 financial period. This culminated in thecompilationofacomprehensiveRiskRegisterreflectingbothstrategicandoperational riskswith clear actions thatneeded tobe takenbyassignedriskchampions.

Thefollowingriskmanagementstrategiesareinplace:

• A Risk Management Policy defining the risk appetite andtolerancelevelsisinplace

• TheRiskManagementCommitteemeets regularly tomonitorthe implementation of the risk strategies and reports to theBoard/EXCOandtheAuditCommitteeontheprogressmadetoaddresstheTop10StrategicRisks,Top10OperationalRisksandTop 10 Fraud Risks


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• InternalAuditservesasabufferbyevaluatingtheadequacyoftheriskmanagementprocessinplaceandrecommendingareasofimprovementtoensureefficientrealisationofstrategicandoperationalgoals

• RiskAssessmentworkshopsareheldonanannualbasis.

PROGRESS MADE IN ADDRESSING IDENTIFIED RISKS

Through implementation of the related risk strategies, risks aremitigatedtherebyyieldingbenefitssuchasreducedoperationallosses,improved regulatory compliance and risk responses during the yearunder review.

5. Internal aUDIt FUnCtIon

Internal audit is an independent objective assurance that deliverssubstantial benefits to the organisation by focussing on systemsof internal control, resulting in better risk management and goodgovernance as well as the achievement of business objectives. TheFP&M SETA contracted an internal audit service provider at thebeginningofthe2012/2013financialyeartoprovidethisfunction.TheserviceprovidersetouttoconductauditsacrossallbusinessunitsandtabledtherelevantprogressreportsattheAuditCommitteemeetings.

key activities and objectives of the internal audit• Reviewtheadequacyandeffectivenessofinternalcontrol,risk

managementandgovernanceprocesses• Providereasonableassuranceontheintegrityoffinancialand

operationalinformation• Evaluate the adequacy of management controls for the

preventionanddetectionoffraud• Provide a source of information, as appropriate, regarding

instances of fraud, corruption, unethical behaviour andirregularities

• Evaluate the effectiveness of the entire system of riskmanagementandproviderecommendationsforimprovement.

Audit work carried out Audit activities concluded during the period under review includedanentity-wideriskassessment,agovernancereview,anInformationTechnology(IT)generalcontrolsreviewandtheauditingofoperationalprocesses including SCM, financial management, mandatory anddiscretionarygrantpaymentsandsectorskillsplanning.

6. aUDIt CoMMIttee

AnindependentAuditCommitteewhichischairedbyanindependentchairpersonwasappointedbytheBoardduringthepreviousfinancialyear and continued to fulfil their obligations in terms of the AuditCommitteeCharter.

The Audit Committeemonitors and reinforces the effectiveness ofboth the internal control system and the internal audit function.TheAuditCommitteeiseffectiveinthatitprovidesvaluablesupport

andoversighttotheFP&MSETAinrelationtofinancialmanagementand accountability. The Audit Committee, working with the Board,continuously monitors the implementation of the policies andproceduresacrossallgovernancestructuresandSETAdepartmentstoensureethicalconduct,fairpracticeandsoundfinancialmanagement.

TheAuditCommitteewasfullyfunctionalandreviewedallauditplansandprogressforthe2012/13financialyear.

key activities and objectives of the Audit Committee• MonitorperformanceoftheInternalAuditfunction• ReviewtheAnnualRiskAssessmentprocessandprioritisationof

majorrisksidentified• Monitortheimplementationofchecksandbalancestoensure

compliancewithpertinentlawsandregulations• Assist the Board in reviewing the integrated reporting and

disclosure(sustainabilityreporting)• Review the financial statements included in the integrated

reportandregardallfactorsandrisksthatmayimpactontheintegrity of the integrated report.

A separate report from the Chairman of the Audit Committee isincludedonpages54to55.

7. CoMplIanCe WItH laWS anD reGUlatIonS

Policies, procedures and guidelines have been developed and arerevisedfromtimetotimeinabidtoensureongoingcompliancewiththe lawsandregulationsapplicable to themanagementof theSETAbusiness. Internal Audit continually reviews the compliance state ofthe SETA in terms of the approved Internal Audit Coverage Plan. Other assuranceproviders suchasSAQA/QCTOand theDHET,also serveasbuffers intermsofprovidingassuranceontheFP&MSETA’sstate ofcompliance.

The FP&M SETA has ensured that the updated Sector Skills Plan,Strategic and Annual Performance Plans and SETA QuarterlyManagement Reports have been timeously submitted to the executiveauthority.

Over and aboveprovidingongoing awareness creation and capacitybuilding on the various policies to Board and staff members,stakeholderworkshops are conducted as andwhen theneed arisesinordertoprovidetheFP&MSETAconstituencieswiththenecessaryinformationandsupportonhowtointeractwiththeSETAandotherrelevantpartiesintheskillsdevelopmentarena.

8. FraUD anD CorrUptIon

Implementation of the FP&M SETA’s Fraud Prevention Plan• TheFP&MSETA’sFraudPreventionPlanwasdueforfinalisation

by 30 May 2013. Once the plan is approved, it will beworkshoppedwithallstaffmembersandtheRiskManagementCommittee will monitor the implementation progress on aperiodicbasis.


Mechanisms in place to report fraud and corruption • TheFP&MSETAhasadedicatedtollfreenumber,managedby

an independentserviceprovider, that isaccessible to internalandexternal stakeholders to report suspiciousbehaviour.Theindependent service provider sends monthly reports to theSETAaccordingtotheprotocolsapprovedbytheBoard.

9. MInIMISInG ConFlICt oF IntereSt

TheFP&MSETAhas ‘Declarationof Interest’practices inplaceatalllevelsoftheorganisation.StaffmembersarerequiredtodisclosetheirfinancialinterestannuallyandstaffintheSCMDivisionalsodeclaresany interest in relation to transactions entered into with serviceproviders–thedeclarationisprintedonthepurchaseorder.

BoardandCommitteemembersarerequiredtoannuallydeclareanyfinancialinterestorcommercialactivitiesthatmaybeinconflictwiththeirfunctions.

10. CoDe oF ConDUCt

The Code of Conduct contained in the Constitution guides theconductofmembersof theBoardand committeesandprovides anethicalframeworkforthefunctioningoftheFP&MSETAgovernancestructures. Policies and procedures for disclosure of interest andgifts as well as confidentiality of information were developed andimplemented.

TheCodeofConductstipulatesthatBoardmembersmust:• StandinafiduciaryrelationshipwiththeFP&MSETA

• Complywith all applicable laws and regulations that regulatetheactivitiesoftheSETA

• Perform their functions fairly, honestly and in good faith,giving full effect to the obligations and spirit of the Act and theConstitution

• ProtectandpromotethereputationoftheSETAandpromotegoodwill towards it

• Performtheirdutiesconscientiouslyandinthebestinterestofthe SETA

• Conduct themselves ethically and in accordance with theprinciplesofgoodgovernance.

11. HealtH SaFetY anD enVIronMental ISSUeS

TheFP&MSETAhasadutyofcaretoensurethatemployeesandanyotherpersonwhomaybeaffectedbytheorganisation’sundertakingsremainsafeatalltimes.

The Board andmanagement of the SETA remain committed to theprotectionofall itsassets,bothhumanandmaterial,fromexposureto risk that could arise from sub-standard practices, proceduresor conditions. This is managed through the implementation ofcomprehensive health (including HIV/Aids), safety and securitypoliciesandprocedures,thetrainingandeducationofstafftopreventexposure to risk and themaintenance of procedures to ensure thesafetyofstaffandassets.

ThisisemphasisedthroughcompliancetotheOccupationalHealth&SafetyAct(OHSA),theCompensationforInjuryonDutyAct(COIDA),towhichtheSETAcontinuestocontributefinancially.

The FP&M SETA Board:Front row: Ms Daphne Erasmus (Employers), Mr Trevor Boltman (Audit Committee Chairman), Mr Mike Truelock (Employers), Mr Sipho Ngidi (Chairman of the Board), Back row: Mr Brian Wafawarowa (Employers), Adv Michelle Odayan (Ministerial Appointee), Mr Roger Godsmark (Employers), Mr Andre Kriel (Labour), Mr David Bowen (Employers), Ms Devaranie Naidoo (Labour), Mr Derick Fredericks (Labour)Absent: Ms Susan Khumalo (Labour)


We are pleased to present our report for the financial year ended 31March2013.

AUDIT COMMITTEE RESPONSIBILITY

The Audit Committee has complied with its responsibilities asstipulated inSection77of thePublicFinanceManagementAct1of1999andTreasuryRegulation3.1.

TheAuditCommitteealsoreportsthatithasadopted,withapprovalfrom the Board, appropriate formal terms of reference as its AuditCommitteeCharter.

12. aUDIt CoMMIttee report

ATTENDANCE OF AUDIT COMMITTEE MEETINGS BY AUDIT COMMITTEE MEMBERS

ThetablebelowdisclosesrelevantinformationontheAuditCommitteemembers:

Name Qualifications Internal or external

If internal, position in the public entity

Date appointed

Date Resigned

No. of Meetings attended

Trevor Boltman CertifiedInternalAuditor(CIA)

CertifiedGovernmentAuditor

CertificationinControlSelfAssessment(CCSA)

CertificateinForensicInvestigation

External – Independent

- November 2011

Not applicable

4 of 4

Roger godsmark BachelorofScience(Honours)AgriculturalEconomics

External – Employer Representative

- November 2011

Not applicable

3 of 4

Motseoa Lugemwa

MastersinBusinessAdministration

CharteredManagementAccountant

BachelorofCommerce

External – Independent

- January 2012 Not applicable

3 of 4

Wasanya Methola CharteredAccountantCA(SA) External – Independent

- January 2012 February 2013

2 of 4

Zakariya Suder BachelorofCommerce External – Labour Representative

- January 2012 Not applicable

4 of 4

This Audit Committee Charter will be reviewed on an annual basisto ensure its continuing relevance and effectiveness. The AuditCommitteehasregulateditsaffairsincompliancewiththischarterandhasdischargedallitsresponsibilitiesascontainedtherein.

BoththeAuditCommitteeandInternalAudittermsofreferencearereviewed and revised on an annual basis.

THE EFFECTIVENESS OF INTERNAL CONTROL

TheAuditCommitteeisoftheopinionthat,basedontheinformationand explanations given by management and discussions with theindependent external auditors (AgSA) on the results of its audits, the internal accounting controls are operating to ensure that thefinancialrecordsmayberelieduponforpreparingtheAFS,andthataccountabilityforassetsandliabilitiesismaintained.

However, it must be reported that there were incidents where thecontrolsystemwasfoundtobelacking.MoreinformationrelatingtothiscanbefoundintheActingChiefExecutiveOfficer’sreport,AGSA’sreportandthefinancialstatements.

TheInternalAuditorsconductedauditsoncertainkeyoperationsandprocessesoftheFP&MSETAaspertheapprovedinternalauditplanduringtheyearended31March2013.

Based on the scope and results of their work, and subject to thelimitationsofsamplingtheirevaluationofthekeycontrolsimplementedbymanagementtoaddresstheassociatedrisks,itappearsthatalessthan adequate control framework was in place. Certain significantimprovements were needed in key control activities in providingreasonableassurancethattheriskareas,subjecttoreview,werebeingproperlymanagedandcontrolled.Therewerenumerousinstancesofnon-compliancetolegislationandpoliciesandprocedures.

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Mr Trevor BoltmanChairman of the Audit Committee

These have, however, been addressed/are in the process of beingaddressedthroughtheexistinglevelsofmanagement.InternalAuditexpressedconfidencethatmanagementarecommittedandaretakingthenecessaryremedialactiontoaddressthecontroldeficiencies.

Accordingly,wecanreportthatthesystemofinternalcontrolfortheperiodunderreviewwasefficientandeffective,exceptforthoseareasthat were raised by the AgSA.

IN-YEAR MANAGEMENT AND MONThLY/QuARTERLY REPORTS

TheFP&MSETAhassubmittedmonthlyandquarterlyreportstotheExecutiveAuthority.

EvALuATION OF ANNuAL FINANCIAL STATEMENTS (AFS)

TheAuditCommitteehasreviewedanddiscussed:• TheauditedAFS tobe included in theannual reportwith the

AGSAandtheAccountingAuthority• Managementletterandmanagement’sresponsethereto• Reviewedsignificantadjustmentsresultingfromtheaudit• The Audit Committee concurs and accepts the AGSA’s

conclusionsontheAFSand isof theopinionthattheauditedAFSbeacceptedandreadtogetherwiththereportoftheAGSAandhasrecommendedthesetotheBoardforadoption.

AuDITOR’S REPORT

The Audit Committee concurs and accepts the conclusions of theexternal auditor on the AFS and is of the opinion that the audited AFS beacceptedandreadtogetherwiththereportoftheauditor.

CONCLUSION

In our opinion, based on feedback to Audit Committee meetings,both general and specific controls have been identified (with weakareas)forurgentattention.Theseareasarebeingaddressedandthiscorrective process must be ongoing and conclusive to mitigate theriskofnotachievingFP&MSETA’sagreedstrategicobjectives. Inouropinion, based on feedback to the Audit Committeemeetings, theFP&MSETA’skeyperformanceindicatorsarebeingmonitoredwithinthe environmental and cash flow constraints this SETA faces. TheFP&MSETAisachievinginmostkeyperformanceareas.

Trevor BoltmanChairmanoftheAuditCommitteeFP&M SETA31 May 2013


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MAnAGeMent

1. IntroDUCtIon

OvERvIEW OF huMAN RESOuRCES (hR) MATTERS AT ThE FP&M SETA

Thebasisofa successful andcompetentorganisation is conjuredofqualifiedandcommittedemployees.Asat31March2013, theSETAhadastaffcomplementof67.

The focalpoint for2012/13was tobuildadynamic teamaswellasincreasingandimprovingcapacity,managingtalent,retainingstaffandembarking on employee wellness programmes.

A number of adjustments occurred during the year which includedthereviewof theorganisationalstructure, resignations,promotions,recruitmentoftheCEOandcreationofnewpositions.

HR PRIORITIES FOR THE YEAR UNDER REVIEW AND THE IMPACT OF THESE PRIORITIES

TheSETAremainscommittedtotraininganddevelopingitsemployeesand has put aside funds to capacitate its employees and Boardmembers.Thiswasdonethroughfundingofshortcourses,workshops,seminars and financially assisting employees who study towardsformalqualifications.

WORKFORCE PLANNING FRAMEWORK AND KEY STRATEGIES TO ATTRACT AND RECRUIT A SKILLED AND CAPABLE WORKFORCE

TheSETAparticipatedinaSETA-widesalarybenchmarkingexerciseaspartofitsStaffRetentionstrategy.

EMPLOYEE PERFORMANCE MANAGEMENT FRAMEWORK

TheFP&MSETAperformancemanagementsystemwasdevelopedandapprovedforimplementationbytheBoard.AllSETAemployeesenteredinto annual performance contracts and annual performance reviewsarescheduledtobeconductedinthenewfinancialyear.Discretionaryperformancebonuseswillbegrantedtoqualifyingemployees.

EMPLOYEE WELLNESS PROGRAMMES

The SETA embarked on a team building pursuit for all its employees. The purposeoftheteambuildingwastoensurethattheSETAworkforceismadeawareofpoliciesandproceduresinplace,andarefamiliarwithwhatisrequiredofthemintermsofdemeanourandperformance.

TheSETAcontinuedtoencourageemployeestoparticipateinactivitiesto celebrate events such as Heritage Day. Furthermore, fundswereraised to support employees who have experienced traumatic lifeexperiencessuchasbereavementandhospitalisation.

Sadly,theFP&MSETAlostitsprojectsspecialistintheKZNregiontodeathinOctober2012.


TheSETAalsohadtomedicallyboarditsgrantsadministratorduetoill-health.

POLICY DEVELOPMENT

HRpoliciesandproceduresareinplaceandarereviewedregularlytokeepabreastwithglobaltrends,andareapprovedforimplementationby the Board.

ACHIEVEMENTS

TheHRDivisionincooperationwiththeHR&RemunerationCommitteedeveloped a Remuneration Strategy & Policy aimed at addressingremunerationanomalieswithintheSETA.Thisshouldhaveapositiveeffectonstaffretention.

APerformanceManagementSystemwasalsodevelopedandisintheprocessofbeingimplemented.

CHALLENGES FACED BY THE PUBLIC ENTITY

ThedeathoftheprojectsspecialistbasedintheKZNRegioninOctober2012 emphasised the lack of standard social benefits. As a result,the SETA experienced challenges in ensuring that the family of thedeceasedwassupported toensureaproperanddignifiedburial fortheir loved one.

The lack of standard social benefits and the results of a salarybenchmarking exercise suggested that the remuneration structureof the SETA was not market related. This challenge was addressedthroughtheapprovalofa remunerationstrategywhich includes theintroductionofsocialbenefitsforallstaff.

A processwas followed tomedically board an employee due to ill-health. The process included medical examination by two differentdoctors,followedbyanincapacityhearing.

FUTURE HR PLANS /GOALS

ThenewCEO,MsFellengYende,will takeupofficeearly inthenewfinancialyear.

The organisational structurewill be reviewed to increase employeecapacitytoenabletheSETAtodeliveronitsmandate.

TheSETAwillintroduceemployeesocialbenefitsforallitsemployeesinaccordancewiththeRemunerationStrategy.Priorityareaswouldbemedicalaid,retirementandill-healthbenefits.

Ateambuildingpursuittobuildafullymotivatedfunctionalforcewillbe held annually.


2. HUMan reSoUrCe oVerSIGHt StatIStICS

PERSONNEL COST BY SALARY BAND

Salary BandPersonnel Expenditure

(R’000)

% of personnel exp. to total personnel cost

(R’000) No. of employeesAverage personnel cost

per employee (R’000)Top Management 3,730 19% 4 932 Management 5,147 26% 13 396 Other 10,731 55% 57 188 TOTAL 119,608 100% 274 265

Note1:SalariestoatotalamountofR19.6millionwaspaidduring2012/2013ofwhichR16.7millionwaspaidfromtheadministrationfund.ThebalanceofR2.9millionwaspaidfromthediscretionaryadministrationfund.

Note2:During2012/13theFP&MSETApaidsalariesto67fulltimestaffmembersand7shorttermtemporarystaff.

Note3:TheFP&MSETAfinancialreportingsystemcategorisessalariesintothecategorieslistedabove.Futurereportingwillmakeprovisionfortheinclusionoffurthercategorisationof‘Other’into‘Professionals,Skilled,Semi-SkilledandUnskilled’.

BREAKDOWN OF SALARIES: TOP MANAGEMENT

Incumbent as at 31 March 2013

Basic salary(R’000)

Allowances(R’000)

Contributions: Social Benefits

(R’000)Bonus

(R’000)Back Pay

(R’000)Leave Pay

Retrenchment

Total Cost to Company

(R’000)Bheki Zulu (ActingCEO) 764 90 - 14 26 83 383 1,360Simangaliso Mkhwanazi(CE: Strategy & Corporate Affairs) 821 72 - 13 9 - - 915PKNaicker(COO) 606 44 60 11 7 - - 728gina Layzell (CFO) 634 25 50 11 7 - - 727TOTAL 2,825 231 110 49 49 83 383 3,730

PERFORMANCE REWARDS

NoperformancerewardswereallocatedasthePerformanceManagementSystemwasbeingdevelopedandiscurrentlybeingimplemented.

TRAINING COSTS

Salary Band

Personnel Expenditure

(R’000)

Training Expenditure

(R’000)

Training Expenditure as a % of Personnel

Cost.

No. of employees

trained

Average training cost per employee

(R’000)Top Management 3,730 - 0% - -Management 5,147 40 1% 3 13Other 10,731 87 1% 21 4Total 19,608 127 1% *24 5

Note:24individualstaffmemberswereinvolvedintrainingprogrammes.Inaddition,groupsofemployeesembarkedontrainingvisitstofactoriesintheFP&Msector.

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EMPLOYMENT AND VACANCIES

Business Unit2011/2012

No. of Employees2012/2013 Approved

Posts2012/2013

No. of Employees2012/2013Vacancies % of vacancies

OfficeoftheCEO 3 3 3 1 33%

Operations 2 2 1 1 50%

Strategy & Corporate Affairs 2 2 2 - -

HR 6 5 5 - -

Monitoring & Evaluation 3 3 3 - -

Marketing&Communications 3 4 4 - -

Skills Planning & Research 6 6 4 2 33,3%

Projects 12 6 8 - -

ETQA 4 4 6 - -

Finance 11 8 11 - -

RegionalOffices 21 23 20 1 4,3%

TOTAL* 73 66 67 6 9%

Note:*Thetotalemployeesin2011/2012and2012/2013includestaffmembersthatwereclassifiedas‘inexcess’aftertheamalgamationandwereretainedonfixedtermcontracts.

ThetotalemployeesdonotincludetheshorttermtemporarystaffthatwasemployedintheProjectsandETQAdivisionsduring2012/2013.

FILLING POSTS AT TOP AND SENIOR MANAGEMENT LEVEL

TheactingCEOwasappointedtotheCEOvacancy(topmanagement)whiletherecruitmentprocesswasunderway.

Aninternalincumbentwasappointedtoactasregionalmanager(seniormanagement)whiletherecruitmentprocesswasunderway.

TheCEOpositionwasvacantfor14months,whiletheregionalmanagerpositionwasvacantfor6months.Inbothcasestherecruitmentprocesstooklongerthananticipated.

MEASURES TAKEN TO SUCCESSFULLY ATTRACT AND RETAIN STAFF

Conduciveworkingenvironmentandanendeavourtohavemarket-relatedremuneration&rewardstructure.

EMPLOYMENT CHANGES

Salary BandEmployment at beginning

of period Appointments Terminations Employment at end of

the period

Top Management 4 - - 4

Management 12 1 2 11

Professionalqualified 24 - 4 24

Skilled 24 - 1 20

Semi-skilled 1 - - 1

Unskilled 8 - - 7

Total 73 *1 7 67

Note:*Onlyoneexternalappointment(HRManager)wasmadeduring2012/2013.Internalappointmentsresultedinverticalandhorizontalmovementofemployeesintheorganisation.


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REASONS FOR STAFF LEAVING

Reason Number% of total no. of staff

leavingdeath 1 14%Resignation 6 86%dismissal - -Retirement - -Ill health - -Expiryofcontract - -Other - -

Total 7 100%

Following the amalgamation process in 2011, change-managementrelatedissuescouldhaveledtoanumberofresignations.Aprocessofsourcingobjectivechange-managementserviceproviderscouldassisttheSETAinmanagingthechallenges.

Anumberofstaffcouldhaveleftduetomorecompetitiveremunerationpackageselsewhere.TheFP&MSETAengagedinasalarybenchmarkexercise inanattempttocorrectanyanomaliesfound.ThisresultedinaRemunerationStrategy&PolicytoguidetheSETAonemployeeremuneration,rewardsandbenefits.

LABOUR RELATIONS: MISCONDUCT AND DISCIPLINARY ACTION

Noinstancesofmisconductleadingtodisciplinaryactionwerereportedduringtheperiodunderreview.

EQUITY TARGET AND EMPLOYMENT EQUITY STATUS

Salary Band

MALEAfrican Coloured Indian White

Current Target Current Target Current Target Current TargetTop Management 2 2 - - 1 1 - -Management 2 2 - - 1 1 1 1Professional qualified 3 3 - - 1 1 2 2Skilled 4 4 - - - - - -Semi-skilled 1 1 - - - - - -Unskilled 1 1 - - - - - -TOTAL 13 13 - - 3 3 3 3

Salary Band

FEMALEAfrican Coloured Indian White

Current Target Current Target Current Target Current TargetTop Management - 1 - - - - 1 1Management 3 3 - - 1 1 3 3Professional qualified 11 11 2 2 2 2 3 3Skilled 10 10 1 1 3 3 2 1Semi-skilled - - - - - - - -Unskilled 6 6 - - - - - -TOTAL 30 31 3 3 6 6 9 9

Salary Band

Disabled StaffMale Female

Current Target Current TargetTop Management - - - -Senior Management - - - -Professionalqualified - - - -Skilled - - 1 -Semi-skilled - - - -Unskilled - - - -TOTAL - - 1 -

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infoRMAtion



1. StateMent oF reSponSIBIlItY

StatementofResponsibilityfortheAnnualFinancialStatements(AFS)fortheyearended31March2013

The Accounting Authority is responsible for the preparation of thepublic entity’s Annual Financial Statements and for the judgementsmadeinthisinformation.

The Accounting Authority is responsible for establishing andimplementing a system of internal control designed to providereasonableassuranceastotheintegrityandreliabilityoftheAnnualFinancialStatements.

Inmyopinion,thefinancialstatementsfairlyreflecttheoperationsofthepublicentityforthefinancialyearended31March2013.

The external auditors are engaged to express an independent opinion ontheAFSofthepublicentity.

The FP&M SETA Annual Financial Statements for the year ended 31March2013havebeenauditedbytheexternalauditorsandtheirreport is presented on page 64 to 66.

TheAnnualFinancialStatementsofthepublicentitysetoutonpage67 to page 113 have been approved.

Bheki ZuluActingChiefExecutiveOfficerFP&M SETA 31 May 2013

Sipho NgidiChairman of the Board FP&M SETA31 May 2013

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2. report oF tHe aCtInG CHIeF eXeCUtIVe oFFICer

The FP&M SETA’S interim accounting and administrative controlsprovide reasonableassurance toall stakeholders that their interestsaresafeguardedandthatalltransactionsareexecutedandrecordedwithingenerallyacceptedbusinesspracticesandstrictinternalpoliciesand procedures. The Finance Division is comprised of a centralisedfunction by which SCM and financial management services arerenderedtotheentity.

TheFinanceDivisionisresponsiblefortheprocessingofpaymentsanddataintegrityoffinancialrecordsincludingthepreparationoffinancialstatements, annual budgets, budgetary control and monthly andquarterlyfinancialreports.ItfurtheroverseesandmonitorsthecashmanagementrequirementsoftheentitybyimplementingtheFP&MSETAinvestmentpolicy.

General financial review of the public entity

Revenue

The revenue for the FP&M SETA amounted to R293,6 million (2011/12 :R308million)forthesecondyearofitslicenceperiod,i.e.2012/2013.R263,3million(2011/12:R274,6million)wasreceivedfromSDLandthis amount was split into R34,5 million (2011/12 : R35,9 million) for administration costs, R164,6 million (2011/12 : R173,1 million) formandatory grants and R64,1 million (2011/12 : R65,4 million) for discretionarygrants.R2,3million(2011/12:R2,8million)wasreceivedbytheFP&MSETAforinterestandpenaltiesonSDLpaidovertoSARS.FP&MSETAreceivedR6,4million (2011/12 :R11,6million) indonorfundingforwhichtheconditionsweremet.InvestmentincometotalledR21,2million (2011/12 : R18,7million). There are still a number ofcompanieswhichhavenotyetbeentransferredtoFP&MSETAsincethe amalgamated SETA was established. A series of engagements have occurredbetweentheDHETandFP&MSETAtoresolvethismatter.

Investment Strategy

Section (31.3.3) of Treasury regulations instructs schedule 3A and3C entities to invest with CPD (Corporation for Public Deposits).FP&MSETAhasinvesteditsexcessfundswiththeCPDinlinewithitsinvestmentpolicy,theaverageinterestratefortheyeartotalled5,12%.

Spending Trends

Theresourcesof theentityhavebeenappliedstrictly inaccordancewith its approved budget. Funds were re-allocated within theadministrative budget during the year between itemswith a savingandthoseunderstrain,andtheapprovaloftheBoardwassecuredinthis regard.

ThetotaladministrativeexpendituretotalledR32,9million(2011/12:R31 million). Savings occurred on a number of budget line itemsincludingauditfees,salaries,MIS,depreciationandofficerent.


MandatoryandDiscretionaryGrantExpenses

During the 2012/2013 financial year, the FP&M SETA paid outmandatory grants totalling R92 million (2011/12: R62 million) to companieswhohadsubmittedtheirworkplaceskillsplansandannualtraining reports and had met the qualification requirements formandatory grant disbursement. However, due to the non-submission of verifiable proof of banking details by the companies, not allqualifyingcompaniesreceivedtheirmandatorygrantsbyyear-end.Inaddition,thelatesubmissionofthelasttwomonths’SDLdownloadstotheSETAimpactednegativelyonthequantumofmandatorygrantsthatcouldbepaidbeforetheendofMarch2013.

Discretionary grants and special projects expenses totalled R57,7million(2011/12:R37,6million).TheapprovaloffundingallocationsinNovember2012leftlittletimeforcompaniesandtrainingproviderstosubmitthenecessaryMOAstotheSETAandcommencewithtrainingbeforetheendofthefinancialyearandthis impactednegativelyondiscretionarygrantspending.

Of thebalanceofR450,5million available in discretionary reserves,R161,5millionhasbeencontractuallycommitted.

Although 89,7% of discretionary grants allocated in 2011/12 hadbeencommittedviasignedcontractualagreements,theuptakeofthe2012/13discretionarygrantswasslowbutstartedgainingmomentumatyear-end.Thefollowingfactorsattributedtothisslowuptake:

• The total discretionary grant budget for 2012/13 wasapproximately three times that of the previous year. Thisresulted in the approval of a 1,240 projects with contractualrequirements that had to be implemented within the parameters of good corporate governance. As a result, theworkload of the Projects Division increased significantly andchallengeswereexperiencedwithregardstotheprocessingofMOAswithsuccessfuldiscretionarygrantapplicants.

• The Board approval for discretionary grant funding wasstaggered between the months of November 2012 and end March2013.Itmustbenotedthatgiventhelargediscretionarygrant budget for 2012/13, this by implication was to havea positive impact on the overall performance of the SETA ifimmediate commitments were secured. Unfortunately, thestaggeredreleaseofdiscretionarygrantapprovalsmeantthatasignificantportionofthefundingcouldonlybecommittedpost-April 2013.

The above resulted in the SETA not meeting certain strategic andperformancetargets,moreespeciallythosetargetsrelatingtobursariesfor the employed, apprenticeships for the employed, recognition ofpriorlearningandworkexperience.

With a clearly defined uptake strategy, which includes increasedhuman resource capacity and an improved electronicMIS forMOAmanagement, we hope to turn around the discretionary grantcommitmentanduptakewithinthenextsixmonths.

Internal Control Environment

The FP&M SETA places significant emphasis on its internal controlstoensurethatitdeliversonitskeyperformanceobjectiveswithinanenvironment conducive to sound corporate governance. To enablemanagement todoso, theBoard sets standards for internal controlaimedatreducingtheriskoferrororlossinacosteffectivemanner.Theinternalaccountingandadministrativecontrolsprovidereasonableassurance that assets are safeguarded and that transactions areexecutedandrecordedinaccordancewiththestandardsofGenerallyRecognisedAccountingPractice(GRAP)andadoptedpolicies.

However, despite this, irregular expenditure totalling R3,8 million due to non-compliancewith the PPPFRegulations of 2011was incurredduringthefinancialyear.TheSCMandFinancestaffhassinceattendedatrainingworkshopontheseregulationstoavoidarepeatofthiserror.TheirregularexpenditurewascondonedbytheBoardofFP&MSETAandarequestforcondonementwassenttoNationalTreasuryinApril2013.Noresponsehasbeenreceivedtodate.

Current and New Projects

DetailsofnewprojectsandcurrentFP&MSETAprojectsareincludedin Note 26 of the AFS.

Details of current projects (inherited from the former SETAs) areincludedinNote26oftheAFS.

Requests for roll-over of funds

ArequesttorolloverfundingwassubmittedtoNationalTreasuryby31 May 2013. The FP&M SETA applied to roll over R454,5 million. A responsefromNationalTreasuryisawaited.

Supply Chain Management

SCM processes and systems are in place and are governed by theSCMPolicyapprovedbytheBoard.TheFP&MSETASCMpoliciesandproceduresencompassthemaintenanceofgoodcorporategovernancethroughcompliancewiththerelevantlegislationandregulations,thepromotionofprocurementfromBEEcompliantandSMMEsuppliers,theapplicationofprocurementtoachievethestrategicobjectivesasstipulated in the strategic plan and the SSP, and ensuring value formoneywhenprocuringgoodsandservices.

Thepolicyalsoensuressegregationofdutiesanddisclosureofinterest.ContinuoustrainingandstaffdevelopmentisneededwithintheSCMDivisiontoensurethatalllegislativerequirementsaremet.



Audit report matters in the previous year

A qualification was reported in the previous year relating to themanagementofapprenticeshipscommitmentsinheritedfromMAPPP-SETA.TheAGSAwasnotabletoconfirmtheaccuracyandcompletenessoftheapprenticeshipcommitmentsandasaresultissuedaqualifiedaudit opinion.

The FP&M SETA set up a task team under the leadership of the COO and the ProjectsDivision to address the finding and to ensure thatan accurate ex-MAPPP SETA apprenticeship commitments registerformspartofthecurrentAFS.SeeNote26showingthecurrentyearcommitments.

Performance Information

The FP&M SETA has made training grants, bursaries and skills developmentsupportavailabletofirmsintheFP&Msectorinlinewithitsstrategicplanandinanefforttoreachitspredeterminedobjectives.Adetailed reporton theFP&MSETA’sperformanceagainstNSDS IIIobjectiveshasbeenincludedonpages16to42.

Events after reporting date

The FP&M SETA Board and management are not aware of any post balancesheeteventsthatmayaffecttheFinancialStatements.

Financial stability

All SETAs are established for a period of five years ending the 31March2016andarerequiredtoapplyforre-establishmentduringthe course of the financial year ending 2016. The Act required, inSection9A(4),thatwhentheFP&MSETAwasestablishedalltheassets,rights, liabilities and obligations of the amalgamating SETAs namelyFIETA, CTFL SETA and part of the MAPPP-SETA would dissolve and vest in the FP&M SETA. The AFS for the FP&M SETA have, therefore, been preparedasagoingconcern.

SCOPA resolutions

None

Bheki ZuluActingChiefExecutiveOfficer31 May 2013

3. report oF tHe eXternal aUDItor

REPORT OF ThE AuDITOR-GENERAL TO PARLIAMENT ON ThE FIBRE PROCESSING AND MANUFACTURING SECTOR EDUCATION AND TRAINING AUTHORITY (FP&M SETA)

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. IhaveauditedthefinancialstatementsoftheFibreProcessingand Manufacturing Sector Education and Training Authority(FP&M SETA) set out on pages 67 to 113 , which comprisethe statement of financial position as at 31March 2013, thestatement of financial performance, statement of changes innet assets and cash flow statement for the year then ended,andthenotes,comprisingasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Accounting authority’s responsibility for the financial statements

2. Theaccountingauthorityisresponsibleforthepreparationandfair presentation of these financial statements in accordancewith the South African Standard of Generally RecognisedAccountingPractice(SAStandardsofGRAP),therequirementsof the Public FinanceManagement Act of South Africa, 1999(Act No. 1 of 1999) (PFMA) and the Skills Development Act,1998(ActNO.97of1998)(SDA),andforsuchinternalcontrolastheaccountingauthoritydeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement, whether due to fraud or error.

Auditor-General’s responsibility

3. My responsibility is to express an opinion on these financialstatements based on my audit. I conducted my audit inaccordance with the Public Audit Act of South Africa, 2004(Act No. 25 of 2004) (PAA), the General Notice issued interms thereofand InternationalStandardsonAuditing.ThosestandardsrequirethatIcomplywithethicalrequirementsandplan and perform the audit to obtain reasonable assuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

4. An audit involves performing procedures to obtain auditevidence about the amounts and disclosures in the financialstatements.Theproceduresselecteddependon theauditor’sjudgement, including the assessment of the risks ofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternal control relevant to the entity’s preparation and fairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotfor thepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingthe appropriateness of accounting policies used and thereasonablenessofaccountingestimatesmadebymanagement,aswell as evaluating the overall presentationof the financialstatements.


5. IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyqualifiedauditopinion.

Basis for qualified opinion

Contractual grant commitments

6. The public entity did not have adequate systems in placeto maintain accurate and complete records of contractualgrant commitments, which resulted in contractual grantcommitmentsbeingoverstatedbyR7,104million. Inaddition,I was unable to obtain sufficient appropriate audit evidencefor the amounts disclosed as contractual grant commitmentsinnote26tothefinancialstatementsandIcouldnotconfirmthedisclosurebyalternativemeans.Consequently,Iwasunabletodeterminewhetherany furtheradjustments tocontractualgrantcommitmentsstatedatR161,503millioninthefinancialstatementswerenecessary.

Qualified opinion

7. In my opinion, except for the possible effects of the matterdescribed in the basis for qualified opinion paragraph thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheFP&MSETAasat31March2013,anditsfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithSAStandardsofGRAPandtherequirementsofthe PFMA and SdA.

Emphasis of matter

8. Idrawattentiontothematterbelow.Myopinionisnotmodifiedinrespectofthismatter.

Restatement of corresponding figures

9. As disclosed in note 26 to the financial statements, thecorresponding figures for 31March 2012 have been restatedas a result of an error discovered during the 31March 2013financialyearinthefinancialstatementsofthepublicentityat,andfortheyearended,31March2013.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

10. In accordance with the PAA and the General Notice issuedin terms thereof, I report the following findings relevant toperformance against predetermined objectives, compliancewithlawsandregulationsandinternalcontrol,butnotforthepurpose of expressing an opinion.

Predetermined objectives

11. Iperformedprocedurestoobtainevidenceabouttheusefulnessand reliability of the information in the annual performancereport as set out on pages 16 to 42 of the annual report.

12. The reported performance against predetermined objectiveswas evaluated against the overall criteria of usefulnessand reliability. The usefulness of information in the annual

performance report relates to whether it is presented inaccordance with the National Treasury’s annual reportingprinciplesandwhetherthereportedperformanceisconsistentwith the planned objectives. The usefulness of informationfurtherrelatestowhetherindicatorsandtargetsaremeasurable(i.e. well defined, verifiable, specific, measurable and timebound) and relevant as required by the National TreasuryFramework for managing programme performance information.

The reliability of the information in respect of the selectedobjectives is assessed to determine whether it adequatelyreflectsthefacts(i.e.whetheritisvalid,accurateandcomplete).

13.Thematerialfindingsareasfollows:

usefulness of information

Consistency

Reported indicators and targets not consistent with planned objectives

Selected objective 4.2: Increasing access to occupationally directed programmes

14. Treasury Regulation 30.1.3(g) requires that the annualperformanceplanshouldformthebasisfortheannualreport,therefore requiring consistency of objectives, indicators andtargets between planning and reporting documents. A totalof 39% of reported indicators and 46% of reported targetsfor the above selected objective are not consistent with theindicatorsandtargetsaspertheapprovedstrategicandannualperformanceplan. This is due to the lackofproperoversightresponsibilityregardingperformancereporting.

Changes to indicators and targets not approved

Selected objective 4.2: Increasing access to occupationally directed programmes

15. Treasury Regulation 30.1.1 requires that the annualperformanceplanmustbeapprovedbytheexecutiveauthority.Therefore, if the annual performance plan is changed in-yeardue to significant policy or mandate changes, the updatedplan has to be approved by the executive authority. A totalof 100% of indicators and 100% of targets reported in theannual performance report for the above selected objectiveand changed in-year were changed without approval by theexecutiveauthority.Thiswasduetoalackofproperoversightduring the annual performance plan compilation process asallindicatorsandtargetsreportedonwerenotincludedintheannualperformanceplansubmittedtotheexecutiveauthorityfor approval.

Reliability

16. There were no material findings on the annual performancereportconcerningthereliabilityoftheinformation.



Additional matter

17. I draw attention to the following matter below. This matterdoesnothaveanimpactonthepredeterminedobjectivesauditfindingsreportedabove.

Achievement of planned targets

18. Of the total number of 45 targets planned for the year, 16 were not achieved during the year under review. This represents36% of total planned targets that were not achieved duringtheyearunderreview.Refertotheannualperformancereportdisclosuresmaderegardingthereasonsfornon-achievement.

Compliance with laws and regulations

19. I performed procedures to obtain evidence that the entityhas complied with applicable laws and regulations regardingfinancial matters, financial management and other relatedmatters.Myfindingsonmaterialnon-compliancewithspecificmattersinkeyapplicablelawsandregulationsassetoutintheGeneralNoticeissuedintermsofthePAAareasfollows:

Annual financial statements, performance and annual reports

20. The financial statements submitted for auditing were notpreparedinaccordancewiththeprescribedfinancialreportingframeworkasrequiredbysection55(1)(a)and(b)ofthePFMA.

Material misstatements of mandatory grant expenditure, mandatorygrantpayablesandaccrualsidentifiedbytheauditorsin the submitted financial statements were subsequentlycorrected, but the uncorrected material misstatements andsupportingrecordsthatcouldnotbeprovidedforcontractualgrant commitments resulted in the financial statementsreceivingaqualifiedauditopinion.

21. Thestrategicplandidnotformthebasisfortheannualreportoftheentityasrequiredbysection55(2)(a)ofthePFMA,readwithTreasuryRegulation30.1.3(g).

Procurement and contract management

22. Quotations were awarded to bidders who did not submit adeclaration on whether they are employed by the state orconnected to any person employed by the state, which isprescribedinordertocomplywithTreasuryRegulation16A8.3.

23. Contracts and quotationswere awarded to bidders based onpointsgivenforcriteriathatdifferedfromthosestipulatedintheoriginal invitationforquotations, incontraventionofTreasuryRegulations 16A6.3 (a) and the Preferential ProcurementRegulations.

24. Invitationsforcompetitivebiddingwerenotalwaysadvertisedin at least the government tender bulletin, as required byTreasuryRegulations16A6.3(c).

Expenditure management

25. Theaccountingauthoritydidnottakeeffectivestepstopreventirregular expenditure/fruitless and wasteful expenditure, as required by section 51 (1)(b)(ii) of the Public FinanceManagementAct.

Internal control

26. Iconsideredinternalcontrolrelevanttomyauditofthefinancialstatements, annual performance report and compliance withlaws and regulations. Thematters reported below under thefundamentalsof internal control are limited to the significantdeficienciesthatresultedinthebasisforqualifiedopinion,thefindingsontheannualperformancereportandthefindingsoncompliancewithlawsandregulationsincludedinthisreport.

Leadership

27. Inadequate monitoring and evaluation (oversight responsibilities)bymanagementandtheaccountingauthorityin the areas of monitoring contractual grant commitments,compliancewith lawsandregulations,completeandaccuratefinancialinformation.

Financial and performance management

28. Monitoring controls implemented by management and theaccountingauthoritywerenotadequateandeffectivetoensuretheproperimplementationoftheoverallprocessofmanagingandmonitoringcontractualgrantcommitmentsandcompliancewith laws and regulations (supply chain management) in atimelymanner.

OTHER REPORTS

Investigations

29. Aninvestigationwasinitiatedbytheaccountingauthoritybasedonalleged irregularities.The investigationwasstillongoingatthereportingdate.

Pretoria31 July 2013


4. annUal FInanCIal StateMentS

STATEMENT OF FINANCIAL PERFORMANCEFortheyearended31March2013

2012/13 2011/12

Notes R’000 R’000

REVENUE Actual Actual

Non-ExchangeSDLRevenue 2.1 263,316 274,630

Non-ExchangeSDLRevenue:PenaltiesandInterest 2.2 2,348 2,853

KZNDepartmentofEconomicDevelopmentandTourism(DEDT):SpecialProject 14 - 637

NationalSkillsFundIncome 14.1 - 2,881

government grants and donor Funding 18.1 - 112

W&RSETA-JointCollaborationProject 15 - 770

TLS - UIF 16 334 2,691

TLS - W&R SETA 18 3,135 3,317

TLS - dHET 15.1 2,972 1,247

Investmentincome 3 21,295 18,664

Other Revenue 4 171 146

Total Revenue 293,571 307,948

EXPENSES

EmployerGrantandProjectExpenses 5 (164,373) (130,997)

AdministrationExpenses 6 (32,762) (31,062)

NationalSkillsFundexpenses 14.1 - (2,881)

government grants and donor Funding 18.1 - (112)

KZNDEDT:SpecialProject 14 - (637)

TLS - UIF 16 (334) (2,691)

TLS - W&R SETA 18 (3,135) (3,317)

TLS - dHET 15.1 (2,972) (1,247)

W&RSETA-JointCollaborationProject-FundsExpensed 15 - ( 770)

Total Expenses (203,576) (173,714)

NET SURPLUS/(DEFICIT) FOR THE PERIOD 89,995 134,234


4. annUal FInanCIal StateMentS continued:

STATEMENT OF FINANCIAL POSITIONAsat31March2013

2012/13 2011/12


ASSETS

Non-currentassets

Property, Plant and Equipment 7 2,490 3,961

Intangible Assets 8 75 123

2,565 4,084

Current assets

Receivablesfromnon-exchangetransactions 9.1 4,204 5,290

ReceivablesfromExchangeTransactions 9.2 921 1,154

Inventories 10 112 110

Cash and Cash Equivalents 11 543,748 423,935

548,985 430,489

Total Assets 551,550 434,573

LIABILITIES

Non-CurrentLiabilities

FinanceLeaseObligations 18.2 - 95

- 95

CurrentLiabilities

TradeandOtherPayables-Non–ExchangeTransactions 13.1 79,449 46,889

TradeandOtherPayables–ExchangeTransactions 13.2 2,081 2,001

CurrentportionofFinanceLeaseObligations 18.2 - 115

GovernmentGrantsandDonorFundingreceivedinadvance 18.1 12,554 11,706

TLSUIFfundsreceivedinadvance 16 1,086 1,047

TLSW&RSETA/UIFfundsreceivedinadvance 18 - 255

W&RSETAfundsreceivedinadvance 15 852 852

DHETfundsreceivedinadvance 15.1 2,480 2,562

LoanAccount-MICTSETA 18.3 - 7

LoanAccount-CATHSSETA 18.3 - 5,992

TotalLiabilities 98,502 71,426

NET ASSETS 453,048 363,052

NET ASSETS

AdministrationReserve 20 2,565 4,084

Employer grant Reserve 20 - 33

DiscretionaryReserve 20 450,483 358,935

453,048 363,052

TOTAL NET ASSETS ANd LIABILITIES 453,048 363,052



STATEMENT OF CHANGES IN NET ASSETSFortheyearended31March2013

Administration reserve

Employer grant

reserveDiscretionary

reserveUnappropriated

surplus TotalNotes R’000 R’000 R’000 R’000 R’000

Balance at 31 March 2012 1,746 132 258,612 - 260,490Less amount transferred to MICT SETA as at 1 April 2011 - - (12,295) - (12,295)Less amount transferred to CATHSSETA as at 1 April 2011 - - (19,301) - (19,301)RestatedBalance 1,746 132 227,016 - 228,894Add expenses paid by FP&M SETA on behalf of CATHSSETA in 2011/12 - - (76) - (76)Allocationofunappropriatedsurplus - - - 134,234 134,234ExcessReservestransferredtoDiscretionaryReserve 1 4,925 79,776 50,142 (134,234) 609Errors 24.3 - - (608) - (608)ExcessreservestransferredtoDiscretionaryreserve (2,587) (79,875) 82,462 - -Amalgamation balance at 1 April 2012 4,084 33 358,936 - 363, 053NetsurplusperStatementofFinancialPerformance - - - 89,995 89,995Allocationofunappropriatedsurplus 1 1,800 57,993 30,202 (89,995) -ExcessReservestransferredtoDiscretionaryReserve (3,319) (58,026) 61,345 - -Balance at 31 March 2013 2,565 - 450,483 - 453,048

CASH FLOW STATEMENTFortheyearended31March2013

2012/13 2011/12Notes R’000 R’000

CASH FLOW FROM OPERATINg ACTIVITIESOperatingActivitiesCashReceiptsfromstakeholders 274,067 284,220Levies,InterestandPenaltiesreceived 2 265,664 277,483OtherCashReceiptsfromstakeholders 8,403 6,738Cash paid to stakeholders, suppliers and employees (174,934) (254 860)GrantsandProjectPayments (139,937) (96,669)DiscretionaryExpensespaidbyFP&MSETAonbehalfofCATHSSETAandMICTSETA - (11,826)SpecialProjects (6,440) (11,655)Compensationofemployees (16,736) (16,045)Payments to suppliers and other (11,821) (118,665)Cashgeneratedfrom/(utilisedin)operations 19 99,133 29,360InvestmentIncome 3 21,295 18,664Movement on Reserves - 47,935Net cash inflow/(outflow) from operating activities 120,427 95,959CASH FLOW FROM INVESTING ACTIVITIESPurchaseofProperty,PlantandEquipmentandIntangibles 7 and 8 (615) (46)Net cash inflow/(outflow) from investing activities (615) (46)Net increase/(decrease) in cash and cash equivalents 119,813 95,913Cash and cash equivalents at beginning of year 11 423,935 328,022Cash and cash equivalents at end of year 11 543,748 423,935


aCCoUntInG polICIeS to tHe annUal FInanCIal StateMentSFortheyearended31March2013

1. BASIS OF PREPARATION

The Annual Financial Statements have been prepared on a goingconcern and on the historical basis unless otherwise stated inaccordance with the effective Standards of Generally RecognisedAccountingPractices(GRAP)includinganyinterpretations,guidelinesand directives issued by the Accounting Standards Board and thePublic FinanceManagementActof SouthAfrica,1999 (ActNo.1of1999) (PFMA).

Standard of GRAPGRAP1:PresentationofAnnualFinancialStatementsgRAP 2: Cash Flow StatementsGRAP3:Accountingpolicies,changesinaccountingestimatesand errorsGRAP4:EffectsofchangesinForeignExchangeRatesgRAP 5: Borrowing CostsgRAP 9: Revenue from ExchangeTransactionsgRAP 12: InventoriesgRAP 13: LeasesGRAP14:EventsaftertheReportingDategRAP 17: Property Plant and EquipmentGRAP19:Provisions,ContingentLiabilitiesandContingentAssetsgRAP 100: Non-Current Assets heldforSaleandDiscontinuedOperationsgRAP 102: Intangible assetsgRAP 107: Mergers

Replaced Statement of GAAPAC101:PresentationofAnnualFinancialStatementsAC118: Cash Flow StatementsAC103:Accountingpolicies,changesinaccountingestimatesand errors

Currently the recognition and measurement principles in the above GRAPandGAAPStatementsdonotdifferorresultinmaterialdifferencesinitemspresentedanddisclosedintheannualfinancialstatements.

TheimplementationofGRAP1,2and3hasresultedinthefollowingchangesinthepresentationoftheAnnualFinancialStatements:

Standard of GRAPGRAP1:PresentationofAnnualFinancialStatementsgRAP 2 : Cash Flow StatementsgRAP3:Accountingpolicies,changesinaccountingestimatesand errorsgRAP 21 : Impairment of Non-CashGeneratingAssetsgRAP 23 : Revenue from Non-ExchangeTransactions(TaxesandTransfers)gRAP 24: Presentation of Budget Information in Annual FinancialStatementsgRAP 26 : Impairment of Cash GeneratingAssetsgRAP 103 : Heritage AssetsgRAP104:FinancialInstruments

Replaced Statement of GAAPAC101:PresentationofAnnualFinancialStatementsAC 118: Cash Flow StatementsAC103:Accountingpolicies,changesinaccountingestimatesand errors

Currently the recognition andmeasurement principles in the aboveGRAP and GAAP Statements do not differ or result in materialdifferences in itemspresentedanddisclosed in theAnnualFinancialStatements.

TheimplementationofGRAP1,2,and3hasresultedinthefollowingchangesinthepresentationoftheAnnualFinancialStatements:

1.Terminologydifferences:

Standard of GRAPStatementofFinancialPerformanceStatementofFinancialPositionStatement of Changes in Net AssetsNet AssetsSurplus/DeficitAccumulatedSurplus/DeficitContributionsfromOwnersDistributionstoOwnersReportingDate

Replaced Statement of GAAPIncomeStatement

BalanceSheetStatement of Changes in Equity

EquityProfit/LossRetained EarningsShare CapitaldividendsBalanceDate

2.TheCashFlowStatementcanonlybepreparedinaccordancewiththedirectmethod.

3.SpecificinformationhasbeenpresentedseparatelyontheStatementofFinancialPositionsuchas:(a)receivablesfromnon-exchangetransactions,includingtaxesandtransfers;(b)taxesandtransferspayable;(c)tradeandotherpayablesfromnon-exchangetransactions.



4.Amountandnatureofanyrestrictionsoncashbalancesisrequired.

The principal accounting policies adopted in the preparation of theAnnualFinancialStatementsaresetoutbelowandare,inallmaterialrespects, consistent with those of the previous year, except asotherwiseindicated.

2. CURRENCY

The Annual Financial Statements are presented in South AfricanRands since that is the currency inwhich themajorityof theentitytransactionsaredenominated.

3. REVENUE RECOGNITION

Revenue is recognised when it is probable that future economicbenefitswillflowtotheenterpriseandthesebenefitscanbereliablymeasured.

3.1 Levy income

Intermsofsection3(1)and3(4)oftheSkillsDevelopmentLeviesAct,1999(ActNo.9of1999),registeredmembercompaniesoftheSETApayaskillsdevelopmentlevy(SDL)of1%ofthetotalpayrollcosttotheSouthAfricanRevenueServices(SARS).

80%ofSDLarepaidovertotheSETA(netofthe20%contributiontotheNationalSkillsFund).

SDLincomeisrecognisedontheaccrualbasis.

The SETA refunds amounts to employers in the form of grants, based on information from SARS.Where SARS retrospectively amends theinformationonSDLcollected, itmayresult ingrants thathavebeenpaidtocertainemployersthatareinexcessoftheamounttheSETAis permitted to have granted to employers. A receivable relating tothe overpayment to the employer in earlier periods is raised at the amountofsuchgrantoverpayment,netofbaddebtsandprovisionforirrecoverableamounts.

Revenue is adjusted for Inter SETA transfers due to employers changing SETAs. Such adjustments are separately disclosed as InterSETAtransfers.TheamountoftheInterSETAadjustmentiscalculatedaccordingtotheStandardOperatingProcedures issuedbytheDHETon 15 May 2007.

When a new employer is transferred to the SETA, the SdL transferred by the former SETA are recognised as revenue and allocated to therespectivecategorytomaintainitsoriginalidentity.TheSDLtransferismeasuredatthefairvalueoftheconsiderationreceived.

SDL income is recognisedwhen it is probable that future economicbenefitswill flow to the SETA and these benefits can bemeasuredreliably. This occurs when the DHET either makes an allocation orpayment,whichevercomesfirst,totheSETA,asrequiredbySection8

oftheSkillsDevelopmentLeviesAct,1999(ActNo.9of1999).

3.2 Interest and penalties

InterestandpenaltiesonSDLisrecognisedontheearlierofthetimetheDHETmakestheallocationorpaymentof thefunds inthebankaccountoftheSETA.

3.3 Funds allocated by the KZN DEDT: Special Projects

FundstransferredbytheKZNDEDTareaccountedfor in theAnnualFinancial Statements of the SETA as a liability until the relatedeligible special projects expenses are incurred, when the liability isextinguishedandrevenuerecognised.

3.4 Government grants and other donor income

Conditionalgovernmentgrantsandotherconditionaldonor fundingreceived are recorded as deferred income when they becomereceivableandare then recognisedas incomeona systematicbasisover the period necessary to match the grants with the relatedcostswhichtheyare intendedtocompensate. Unconditionalgrantsreceivedarerecognisedwhentheamountshavebeenreceived.

3.5 Investment income

Interest income is accrued on a time proportion basis, taking intoaccounttheprincipaloutstandingandtheeffectiveinterestrateoverthe period to maturity.

4. GRANTS AND PROjECT EXPENDITURE

Aregisteredcompanymayrecoveritstotallevypaymentbycomplyingwith the grant criteria in accordance with the Skills DevelopmentRegulationsissuedintermsoftheSkillsDevelopmentAct,1999(ActNo 9 of 1999).

Mandatory grants

Thegrantpayableandtherelatedexpenditurearerecognisedwhentheemployerhassubmittedanapplicationforagrantintheprescribedform within the agreed upon cut-off period and the applicationhas been approved as the payment then becomes probable. Thegrant isequivalent to50% (2011/12 :50%)of the total SDLpaidby theemployerduringthecorrespondingfinancialperiodfortheskillsgrantrespectively.

Discretionary grants

A SETA may out of any surplus monies determine and allocatediscretionary grants to employers, education and training providersandworkersoftheemployerswhohavesubmittedanapplicationforadiscretionarygrant in theprescribedformwithin theagreeduponcut-off period. The grant payable and the related expenditure arerecognisedwhentheapplicationhasbeenapprovedtotheextentthattheconditionsofthegranthavebeenmet.


Project expenditure

Projectexpenditurecomprises:. coststhatrelatedirectlytothespecificcontract;. coststhatareattributabletocontractactivityingeneralandcan

beallocatedtotheproject;and. suchothercostsasarespecificallychargeabletotheSETAunder

thetermsofthecontract.Suchcostsareallocatedusingmethodsthataresystematicandrationalandareappliedconsistentlytoallcostshavingsimilarcharacteristics.

Projectcostsarerecognisedasexpensesintheperiodinwhichtheyareincurredandtotheextentthatconditionsaremet.Areceivableisrecognisednetofaprovisionforirrecoverableamountsforincentiveandotherpaymentsmadetotheextentofexpensesnotyetincurredintermsofthecontract.

Commitments

CommitmentsaredisclosedwheretheSETAhasinthenormalcourseof itsoperationsentered intoa contractual agreementwithentitieseitherrelatedtodiscretionarygrantsorprojectexpenseswhichhavenotyetbecomedueforpayment.

5. IRREGULAR AND FRUITLESS AND WASTEFUL EXPENDITURE

Irregularexpendituremeansexpenditureincurredincontraventionof, or not in accordance with, a requirement of any applicablelegislation,including:

. The PFMA, . TheSkillsDevelopmentAct,. SkillsDevelopmentLeviesAct.

Fruitless and wasteful expenditure means expenditure that wasmadeinvainandwouldhavebeenavoidedhadreasonablecarebeenexercised.

Allirregularandfruitlessandwastefulexpenditureischargedagainstincomeintheperiodinwhichitisincurred.

6. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at historical cost lessany subsequent accumulated depreciation and adjusted for anyimpairment. An impairment, residual and useful life review is done annually. Thecostmodel isusedas thebasisofmeasurementafterinitial recognition of the asset. Depreciation is calculated on thestraight-linemethodtowrite-offthecostofeachassettoestimatedresidualvalueoveritsestimatedusefullifeasfollows:

Computer Equipment 3 years

OfficeFurnitureandFittings 5 years

OfficeEquipment 4 years

MotorVehicles 3 years

Art and signage 5 years

The estimated useful life of the assets is limited to the remainingperiod of the licence issued to the SETA by theMinister of HigherEducation and Training. For the current year the remaining period is 4 years .

Where the carrying amount of an asset is greater than its estimatedrecoverableamount, it iswrittendownimmediatelyto itsrecoverableamount.

gains and losses on disposal of property, plant and equipment are determinedbyreferencetotheircarryingamountandaretakenintoaccountindeterminingoperatingprofit.

7. INTANGIBLE ASSETS

ComputerSoftwareandLicences

Acquiredcomputersoftwareandlicencesarecarriedatcostlessanyaccumulated amortisation and any impairment losses. Amortisationonthesecosts isprovidedtowritedownthe intangibleassets,onastraight-line basis, over their useful life.

Software 2 years

Licence Termoflicence

8. INVENTORIES Inventories are statedat the lowerof cost andnet realisable value.Net realisable value represents the estimated selling price in theordinarycourseofbusinesslessanycostsofcompletionandcoststobeincurredinmarketing,sellinganddistribution.

Cost is determined on the following basis: Inventory is valued on invoicedcost.

9. PROVISIONS

ProvisionsarerecognisedwhentheSETAhasapresentobligationasa result of a past event and it is probable that this will result in an outflow of economic benefits that can be estimated reliabily. Long-termprovisionsarediscounted tonetpresentvalue.TherewerenoprovisionsaccountedforintheAnnualFinancialStatements.

Projects

No provision ismade for projects approved at year-end, unless theserviceintermsofthecontracthasbeendeliveredorthecontractisofanonerousnature.Whereaprojecthasbeenapproved,buthasnotbeenaccruedfororprovidedfor,itisdisclosedascommitmentsinthenotestotheAnnualFinancialStatements.



10. ACCRUALS FOR EMPLOYEE ENTITLEMENTS

Bonusand leaveaccrualsare recognisedduring theperiod inwhichtheemployee renders the related service.Bonusand leaveaccrualsarerecognisedwhentheyaccruetoemployees.Anaccrualismadefortheestimatedliabilityasaresultofservicesrenderedbyemployeesuptothereportingdate.

11. FINANCIAL INSTRUMENTS

Recognition

Financial assets andfinancial liabilities are recognisedon the SETA’sStatementofFinancialPositionwhentheSETAbecomesapartytothecontractualprovisionsoftheinstrument.

All ordinary purchases and sales of financial assets are initiallyrecognisedontransactiondate.

Measurement

Financial instruments are initially measured at fair value, whichincludes transaction costs. Subsequent to initial recognition theseinstruments are measured as set out below.

Financial assets

TheSETA’sprinciplefinancialassetsareaccountsandotherreceivablesandcashandcashequivalents.

Investments and loans

Thefollowingcategoriesofinvestmentsaremeasuredatsubsequentreportingdatesatamortisedcostbyusingtheeffectiveinterestratemethod if they have a fixedmaturity, or at cost if there is no fixedmaturity: - Loansandreceivablesoriginatedbythegroup;- Held-to-maturityinvestments;- Aninvestmentthatdoesnothaveaquotedmarketpriceinan

activemarketandwhosefairvaluecannotbemeasuredreliably.

Costandamortisedcostareinclusiveofanyimpairmentlossrecognisedto reflect irrecoverable amounts. Thefinancial assets are subject toreviewforimpairmentateachbalancesheetdate.

Investmentsotherthanthoselistedaboveareclassifiedasavailable-for-sale investments or investments held-for-trading and are measured atsubsequentreportingdatesatfairvaluewithoutanydeductionfortransactioncoststhatmaybeincurredonsaleorotherdisposal.

Accounts and other receivables

Accounts and other receivables are stated at amortised costs andreduced by appropriate allowances for estimated irrecoverableamountswhicharewrittenoff.

Cash and cash equivalents

Cashandcashequivalentscomprisescashonhand,demanddepositsand other short term highly liquid investments that are readily convertibletoaknownamountofcashandsubjectedtoaninsignificantriskofchangesinvalue,theseareinitiallyandsubsequentlyrecordedat fair value.

Financial liabilities

TheSETA’sprincipalfinancialliabilitiesareaccountspayables.Financialliabilities are measured initially at fair value but subsequently atamortisedcost.

Gains and losses on subsequent measurement

Gains and losses arising froma change in the fair valueof financialinstruments,otherthanavailable-for-salefinancialassets,areincludedinnetprofitorlossintheperiodinwhichitarises.Gainsandlossesarising froma change in the fair valueof available-for-sale financialassetsarerecognisedinequity,untiltheinvestmentisdisposedoforisdeterminedtobe impaired,atwhichtimethenetprofitor loss isincludedinthenetprofitorlossfortheperiod.

Derecognition

AfinancialassetoraportionthereofisderecognisedwhentheSETArealisesthecontractualrightstothebenefitsspecifiedinthecontract,the rights expire, the SETA surrenders those rights or otherwise loses controlofthecontractualrightsthatcomprisethefinancialasset.Onderecognition, the difference between the carrying amount of thefinancialassetandthesumoftheproceedsreceivableandanyprioradjustmenttoreflectthefairvalueoftheassetthathadbeenreportedinequityisincludedinnetprofitorlossfortheperiod.

Fair value considerations

The fair values at which financial instruments are carried at thebalance sheet date have been determined using available marketvalues. Where market values are not available, fair values have been calculated by discounting expected future cash flows at prevailinginterest rates. The fair values have been estimated using availablemarketinformationandappropriatevaluationmethodologies,butarenotnecessarilyindicativeoftheamountsthattheSETAcouldrealisein thenormal courseofbusiness. The carryingamountsoffinancialassetsandfinancialliabilitieswithamaturityoflessthanoneyearareassumed to approximate their fair value due to the short-term trading cycleoftheseitems.


Offsetting

Financial assets and financial liabilities are offset if there is anyintentiontorealisetheassetandsettletheliabilitysimultaneouslyandalegallyenforceablerighttosetoffexists.

12. RESERVES

Equityaresub-classifiedintheStatementofFinancialPositionbetweenthe following funds and reserves: - AdministrationReserve- Employer grant Reserve - DiscretionaryReserve.

Thissub-classificationismadebasedontherestrictionsplacedonthedistribution ofmonies received in accordance with the Regulationsissued in terms of the Skills Development Act, 1998 (Act No. 97 of 1998).

MemberemployercompanylevypaymentsaresetasideintermsoftheSkillsDevelopmentActandtheregulationsissuedintermsoftheAct,forthepurposeof:

2012/13%

2011/12%

AdministrationCostsoftheSETA 10 10

Employer grant Fund Levy 50 50

Mandatory grants 50 50

DiscretionaryGrantsandProjects 20 20

80 80

In addition, contributions received frompublic serviceemployers inthenationalorprovincialspheresofgovernmentmaybeusedtopayforitsadministrationcosts.

InterestandpenaltiesreceivedfromSARSareutilisedfordiscretionarygrants. Other income received is utilised in accordance with theoriginalsourceoftheincome.

Thenetsurplus/deficitisallocatedtotheadministrationreserve,themandatorygrantreserveandthediscretionaryfundreservebasedontheabove.Theamountretainedintheadministrationreserveequatesto the net book value of property plant and equipment and intangible assets.Excesscashreservesaretransferedtothediscretionaryreserve.

Surplus funds in the employer grant reserve are transfered to the discretionary reserve at the endof thefinancial year.An amount isretainedintheemployergrantreserve,afterconsiderationisgiventonewcompanies,whichintermsoftheregulations,hassixmonthsafterjoiningtosubmittheirworkplaceskillsplan.

13. COMPARATIVE FIGURES

Wherenecessarycomparativefigureshavebeenadjustedtoconformtochangesinpresentationinthecurrentyear.

14. TAXATION

Noprovisionhasbeenmadefortaxation,astheSETAisexemptfromincometaxintermsofSection10oftheIncomeTaxAct.

15. OPERATING LEASES

Paymentsmadeunderoperatingleasesaredeductedinarrivingatnetprofit/lossonthestraightlinebasisovertheperiodofthelease.

16. CONTINGENCIES

In terms of the PFMA, all surplus funds as at year-end may be forfeited to National Treasury, should an application for retention of surplusfundsbedenied.Wehaveon31May2013submittedanapplicationtoDHET for retention of surplus funds. As in the previous year FP&MSETA expects that National Treasury will approve the retention ofsurplus funds.

IntermsofthePFMA,allnewcompanieswhichhaveregisteredwithSARS in the last six months of the financial year were still able tosubmitaworkplaceskillsplanandreceivemandatorygrants,nonewcompanieshaveregisteredwithinthelastsixmonthswhichresultedinacontingencyliabilityofNILinthemandatorygrantreservesontheStatementofFinancialPosition.

17. RELATED PARTY TRANSACTIONS

TransactionsaredisclosedasotherrelatedpartytransactionswheretheSETAhasinthenormalcourseofitsoperationsenteredintocertaintransactionswithentitieseitherrelatedtotheDHETorwhichhadanominatedrepresentativeservingontheSETAAccountingAuthority.

TransactionsaredisclosedasotherrelatedpartytransactionswhereInterSETAtransactionsariseduetothemovementofemployersfromone SETA to another.



noteS to tHe annUal FInanCIal StateMentSFortheyearended31March2013

1. ALLOCATION OF NET SURPLUS FOR THE YEAR TO RESERVES:

2012/13 NotesTotal per Statement

of PerformanceAdministration

ReserveEmployer Reserve Mandatory Grants Discretionary Reserve

R’000 R’000 R’000

Discretionary Grants R’000

Special Projects

R’000

Total Discretionary

R’000

Total Revenue 293,571 34,562 164,627 87,942 6,441 94,382

SDL:Income

AdministrationLevyIncome(10%) 34,562 34,562 - - - -

GrantLevyIncome(70%) 228,754 - 164,627 64,126 - 64,126

SDL:PenaltiesandInterest 2,348 - - 2,348 - 2,348

TLS - UIF 16 334 - - - 334 334

TLS - W&R SETA 18 3,135 - - - 3,135 3,135

TLS - dHET 15.1 2,972 - - - 2,972 2,972

InvestmentIncome 21,295 - - 21,295 - 21,295

Other Revenue 172 - - 172 - 172

Total Expenses 203,576 32,762 106,634 57,739 6,441 64,180

AdministrationExpenses 32,762 32,762 - - - -

TLS - UIF 16 334 - - - 334 334

TLS - W&R SETA 18 3,135 - - - 3,135 3,135

TLS - dHET 15.1 2,972 - - - 2,972 2,972

Employer grants and ProjectExpenses 164,373 - 106,634 57,739 - 57,739

Net Surplus per Statement of Performanceallocated 89,995 1,800 57,993 30,203 - 30,203



noteS to tHe annUal FInanCIal StateMentS continued:Fortheyearended31March2013

1. ALLOCATION OF NET SURPLUS FOR THE YEAR TO RESERVES:

2011/12 NotesTotal per Statement

of PerformanceAdministration

ReserveEmployer Reserve Mandatory Grants Discretionary Reserve

R’000 R’000 R’000

Discretionary Grants R’000

Special Projects

R’000

Total Discretionary

R’000

Total Revenue 307,948 35,987 173,195 87,110 11 655 98 765

SDL:Income

AdministrationLevyIncome(10%) 35,987 35,987 - - - -

GrantLevyIncome(70%) 238,643 - 173,195 65,448 - 65,448

SDL:PenaltiesandInterest 2,853 - - 2,853 - 2,853

KZNDEDTandCTFLSETAproject 14 637 - - - 637 637

NationalSkillsFundIncome 14.1 2,881 - - - 2,881 2,881

government grants and donor funding receivedinadvance 18.1 112 - - - 112 112

W&RSETA-JointCollaborationProject 15 770 - - - 770 770

TLS - UIF 16 2,691 - - - 2,691 2,691

TLS - W&R SETA 18 3,317 - - - 3,317 3,317

TLS - dHET 15.1 1,247 - - - 1,247 1,247

InvestmentIncome 18,664 - - 18,664 - 18,664

Other Revenue 146 - - 146 - 146

Total Expenses 173 714 31,062 93,419 37,578 11,655 49,233

AdministrationExpenses 31,062 31,062 - - - -

KZNDEDTandCTFLSETAproject 14 637 - - - 637 637

W&RSETA-JointCollaborationProject 15 770 - - - 770 770

NationalSkillsFundIncome 14.1 2,881 - - - 2,881 2,881

government grants and donor Funding receivedinadvance 18.1 112 - - - 112 112

TLS - UIF 16 2,691 - - - 2,691 2,691

TLS - W&R SETA 18 3,317 - - - 3,317 3,317

TLS - dHET 15.1 1,247 - - - 1,247 1,247

Employer grants and ProjectExpenses 130,997 - 93,419 37,578 - 37,578

NetSurplus/(Deficit)perStatementofPerformanceallocated 134,234 4,925 79,776 49,532 - 49,532

FP&MSETAsubmittedanapplicationtotheDHETtoexceedthe10%administrationincomeduetothedecreaseinSDLcomparedtopreviousfinancialyearsandthehighincreaseinauditfees.PlansforcostcuttingmeasuresweresentthroughtoDHETduringthefinancialyearandexpensesagainstbudgetswerecloselymonitored.Asatthe31ofMarch2013, approval had not been given by dHET.


2. NON-EXChANGE SDL REvENuE AND INTEREST AND PENALTIES

2.1 Non-Exchange SDL Revenue

2012/13 2011/12

R’000 R’000

Thetotallevyrevenue,excludinginterestandpenalties,pertheStatementofPerformanceisas

follows:

LevyRevenue:Administration 34,562 35,987

Leviesreceived 34,562 35,987

LeviesreceivedfromSARS 34,643 36,022

Inter SETA transfers in 7 8

Inter SETA transfers out (88) (43)

Levy Revenue: Employer grants 164,627 173,195





LevyRevenue:DiscretionaryGrants 64,126 65,448





263,316 274,630

2.2 Non-Exchange SDL Revenue : Penalties and Interest

InterestandPenaltiesreceived 2,348 2,853

2,348 2,853

3. INVESTMENT INCOME

Interestincome 21,295 18,664

Interestincomereceived 55,208 51,862

AccruedInterest (33,913) (33,199)

21,295 18,664

4. OTHER REVENUE

Testingcertificates 171 146

171 146



5. EMPLOYER GRANT AND PROjECT EXPENSES

2012/13 2011/12

R’000 R’000

Mandatory grants 106,634 93,419

disbursed 92,498 62,715

Movementinprovisionsandaccruals 14,137 30,704

DiscretionaryGrants 57,739 37,578

disbursed 47,438 33,955

Movementinprovisionsandaccruals 10,300 3,623

164,373 130,997

6. ADMINISTRATION EXPENSES

2012/13 2011/12


Depreciation 2,007 (2,629)

Amortisation 123 45

OperatingLeaseRentals(minimumleasepayments) 21 1,939 2,512

Buildings 1,939 2,512

Maintenance,RepairsandRunningCosts 67 118

Other Repairs 67 118

Advertising,MarketingandPromotions,Communication 107 153

Gifts,DonationsandSponsorshipspaid - 9

ConsultancyandServiceProviderFees 1,092 3,664

Legal Fees 437 72

Cost of Employment 6.1 16,736 16,045

TravelandSubsistence 2,388 2,081

StaffTrainingandDevelopment 67 55

RemunerationtomembersoftheAccountingAuthority 274 235

ResearchandDevelopmentcosts 1,142 958

RemunerationtomembersoftheAuditCommittee 31 75

ExternalAuditor’sRemuneration 1,927 3,296

Audit Fees 1,927 3,296

SpecialisedAuditFees 6.3 106 -

BadDebtswrittenoff 118 106

Other 4 202 4,268

WorkshopsandFunctions 425 258

Telephone 841 876

Sundry 2,936 3,134

Audit internal 678 331

Computer expenses - 475

Cleaning 53 80

StaffWorkshops - 38

StaffWelfare 36 10

Electricity 208 276


2012/13 2011/12


Bank Charges 57 108

FinanceCharges 32 34

Insurance 253 218

Motor Expenses 110 147

OfficeExpenses 105 192

Postage 102 168

Equipment Rental 56 83

Loss on Asset disposal 5 363

PrintingandPublications 264 162

Professional Indemnity - 46

ETQA 656 114

Stationery 108 49

Subscriptionsandmemberships 185 206

Security 28 33

32,762 31,062

6.1 Cost of Employment

Salaries and Wages 15,596 14,341

BasicSalaries 15,494 14,236

Leavepayments/adjustmentofaccruals 102 90

Leavepayments/adjustmentofaccruals 102 90

SocialContributions 1,140 1,704

MedicalAidContributions 183 695

ProvidentFundContributions:definedcontributionplans 575 635

UIF 159 150

Insurance 65 59

Othersalaryrelatedcosts 159 165

16,736 16,045

Allocation of cost of employment

AdministrationExpenses 6 16,736 16,045

16,736 16,045

Average number of employees 67 73

6.2 Staff Training and Development

GrantsreceivedfromEDTPSETA (60) -

StaffTrainingExpenditure 127 55

67 55



7. PROPERTY, PLANT AND EQUIPMENT

Cost

Accumulated depreciation/

impairment Closing carrying

amountFor the period ended 31 March 2013 R’000 R’000 R’000Computer Equipment 2,018 (1,495) 523OfficeFurnitureandFittings 5,414 (3,866) 1,548OfficeEquipment 991 (746) 245MotorVehicles 141 (134) 7Signage 170 (170) -Artwork 279 (112) 167

9,013 (6,523) 2,490

Fortheperiodended31March2012Computer Equipment 1,741 (1,437) 304OfficeFurnitureandFittings 5,346 (2,209) 3,137OfficeEquipment 910 (627) 283MotorVehicles 141 (127) 13Signage 170 (170) -Artwork 279 (56) 223

8,587 (4,626) 3,961

Depreciableassetsoriginalremainingusefullifeof2yearschangedto3yearsforcomputerequipmentandofficeequipmentinthebeginningofthecurrentperiodtoreflecttheactualpatternofservicepotentialderivedfromtheseassets.TheeffectonthecurrentandfutureperiodswillbeanincreaseofR111,000ondepreciationchargesforcomputerequipmentandR181,000forofficeequipmentforthecurrentperiodandanequalincreaseforthesubsequentfinancialyear.

Movement summary 2013Carrying

amount 2012 Additions Disposals

Depreciation/ Amortisation

charge

Accumulated Depreciation on disposals

Carrying amount 2013

R’000 R’000 R’000 R’000 R’000 R’000

Computer Equipment 305 390 (112) (168) 108 523

OfficeFurnitureandFittings 3,136 68 (1) (1,655) - 1,548

OfficeEquipment 283 82 (1) (120) 1 245

MotorVehicles 14 - - (7) - 7

Artwork 223 - - (56) - 167

Balance at end of March 2013 3,961 540 (114) (2,007) 109 2,490

Movement summary 2012 Consolidated carrying amount

2011 Additions Disposals

Depreciation/ Amortisation

charge

Accumulated Depreciation on disposals


R’000 R’000 R’000 R’000 R’000 R’000

Computer Equipment 456 10 (1,379) (38) 1,256 305

OfficeFurnitureandFittings 594 - (1,206) 2,648 1,100 3,136

OfficeEquipment 301 32 (165) 82 33 283

MotorVehicles 21 - - (7) - 14

Artwork 279 - - (56) - 223

Balance at end of March 2012 1,651 42 (2,750) 2,629 2,389 3,961


8. INTANGIBLE ASSETS

Cost Accumulated amortisation

Closing carrying amount

For the period ended 31 March 2013 R’000 R’000 R’000ComputerSoftware 1,182 (1,107) 75

1,182 (1,107) 75

For the year ended 31 March 2012ComputerSoftware 1,107 (984) 123

1,107 (984) 123

Consolidated carrying amount 2012 Additions Amortisation charge


Movement summary 2013 R’000 R’000 R’000 R’000ComputerSoftware 110 75 (123) 62SoftwareLicences 13 - - 13BalanceatendofMarch2013 123 75 (123) 75

Movement summary 2012ComputerSoftware 119 11 (20) 110SoftwareLicences 2 35 (25) 13Balance at end of March 2012 121 46 (45) 123

9. RECEIvABLES FROM NON-EXChANGE TRANSACTIONS AND EXChANGE TRANSACTIONS

2012/13 2011/12Notes R’000 R’000

9.1 Receivables from Non-Exchange TransactionsSkills development levy debtors 24.3 36 34Discretionarygrantdebtors 24.3 36 34

4,168 5,256Inter SETA debtors 24.1 71 73EmployerReceivablesoverpaymentsduetoSARSReversals 9.1.1 2,919 2,295TLS dHET 255 2,054TLS UIF 923 834

4,204 5,290

9.1.1 Employer Receivable

Employer ReceivableOverpayment to employers 3,158 2,628

3,158 2,628

Allowancefordoubtfuldebts (239) (333)Opencarryingamount (333) (320)Increase/(decrease)incurrentyearprovision 94 (13)

NeteffectofSARSretrospectiveadjustmentsonaffectedemployers 2,919 2,295



10. INVENTORIES

2012/13 2011/12


Openingcarryingamount 110 57

Purchases 115 85

Amountsutilised (114) (32)

112 110

Inventoriescompriseabulkpurchaseofphotostatpaperforofficeuse.

11. CASH AND CASH EQUIVALENTS

Cash at bank and in hand 543,748 423,935

Cash at bank 543,734 423,920

Cash on hand 14 15

CashandcashequivalentsatendofMarch2013 543,748 423,935

AsrequiredinTreasuryRegulation31.2,NationalTreasuryapprovedthebankswherethebankaccountsareheld.

Cashincludescashonhandandcashwithbanks.Cashequivalentsareshortterm,highlyliquidinvestmentsthatareheldwithregisteredbankinginstitutionswithmaturitiesofthreemonthsorlessandthataresubjecttoaninsignificantriskofchangeinvalue.

ForthepurposeoftheCashFlowStatement,cashandcashequivalentscomprisecashonhandanddepositsheldattheCPDandcallaccounts.

12. SURPLUS FUNDS TRANSFERABLE TO NATIONAL TREASURY

Opencarryingamount - -

Transfersofexcessfundsfrom:

DiscretionaryReserve 450,483 358,935

AmountstransferredtoAdministrationReserve 2,565 4,084

Applicationforapprovalforaccumulation (453,048) (363,052)

Closingcarryingamount - -

9. RECEIvABLES FROM NON-EXChANGE TRANSACTIONS AND EXChANGE TRANSACTIONS continued

Allbaddebtswritten-offareapprovedbytheFinance&ProjectsCommittee.DuringtheyearaprioryeardoubtfuldebtofR212,000wasapprovedforwrite-off.R116,000wasraisedasadoubtfuldebtprovisionin2012/13duetocompanyclosures.

9.2 Receivables from Exchange Transactions 921 1,154

deposits 426 112

InterestReceivable 309 1,023

StaffAdvances 1 8

Prepaid Expenses 184 11

921 1,154


13. TRADE AND OThER PAYABLES NON-EXChANGE AND EXChANGE TRANSACTIONS

2012/13 2011/12


13.1 Trade and Other Payables Non – Exchange Transactions 79,449 46,888

TradeandOtherPayablesNon-ExchangeTransactions:MandatoryGrants 47,760 32,999

TradeandOtherPayablesNon-ExchangeTransactions:DiscretionaryGrants 13,960 3,660

dHET 6,895 -

SARS payable 13.3 10,316 9,437

Inter SETA payables 24.1 238 510

DutyCreditCertificate(DCC)HoldingAccount 281 281

13.2 Trade and Other Payables – exchange transactions 2,081 2,001

Sundry payables 1,277 1,299

Bonus and Leave payable 803 701

81,530 48,889

13.3 SARS Payables Opening balance Additions Closing balance

For the period ended 31 March 2013 R’000 R’000 R’000

Leviesincorrectlyreceived 9,437 879 10,316

9,437 879 10,316

For the year ended 31 March 2012

Leviesincorrectlyreceived 8,444 993 9,437

8,444 993 9,437

14. KZN DEDT: SPECIAL PROjECTS

2012/13 2011/12

R’000 R’000

Openingbalance - 637

Course Fees - (637)

Closing Fees - -

14.1 National Skills Fund

Openingbalance-SABCProject - 3,078

Openingbalance-NSFVulamathubaproject - 1,262

Utilisedandrecognisedasrevenue-conditionsmet:SABC - (2,881)

Utilisedandrecognisedasrevenue-refundedtoNSF - (1,262)

Paid to MICT SETA - (197)

Closingbalance - -


15. W&R SETA AND CTFL SETA jOINT COLLABORATION PROjECT

2012/13 2011/12

R’000 R’000

Openingbalance 852 621

Receivedduringtheyear - 1,000

W&RSETAJointCollaborationProject-Learnership - 1,000

Utilisedandrecognisedasrevenue-conditionsmet: - (770)

Closing balance 852 852

15.1 DHET

Openingbalance 2,562 -

Receivedduringtheyear 2,634 3,809

W&RSETAJointCollaborationProject-Learnership 2,634 3,809

W&RSETAJointCollaborationProject-Learnershipdebtor 255 -

Utilisedandrecognisedasrevenue-conditionsmet: (2,972) (1,247)

Closing balance 2,480 2,562

16. TRAINING LAYOFF SChEME - uIF

Openingbalance 1 047 992

Receivedduringtheyear 40 2 745

Accruedamount 333 -

Company disbursements (334) (2,691)


17. RETIREMENT BENEFIT OBLIGATION

TheMAPPP-SETAprovidedforpostemploymenthealthcarebenefitstoitsretiredemployeeswithmorethantenyearscontinuedservice.

Thesebenefitsareunfundedbutduetopossiblelabourimplicationsithasbeenreferredtoasub-committeeoftheAuthoritytoinvestigate.ThefollowingtablessummarisethecomponentsofthenetexpenserecognisedintheStatementofFinancialPerformance,thefundedstatusandtheamountsrecognisedintheStatementofFinancialPerformance.

NetBenefitExpense

Currentservicecost

Interest adjustment

Expectedemployerbenefitpayments - 154

Acturial(gain)/Lossrecognisedintheyear - 396

- 550



18. TRAINING LAYOFF SChEME - W&R SETA

2012/13 2011/12

R’000 R’000

Openingbalance 255 319

Receivedduringtheyear 2,880 3,253

Utilisedandrecognisedasrevenue-conditionsmet: (3,135) (3,317)

Closing balance - 255

18.1 Government Grants and Donor Funding Received in Advance

Create SA

Openingbalance 10,015 8,961

Receivedduringtheyear 737 1,165

Utilisedandrecognisedasrevenue-conditionsmet: - (112)


Department of Arts and Culture

Openingbalance 1,692 1,531

Receivedduringtheyear 110 161


18.2 Finance Lease Obligations

FinanceLeaseLiability - 210

Less:Shorttermportiondisclosedundercurrentliabilities - 115

Non-Current Lease Liability - 95

18.3 Loan account - MICT SETA

Openingbalance1April2012 (7) (26,445)

Movement during the year 7 26,438

Closing balance - (7)

18.4 Loan account - CAThSSETA

Openingbalance1April2012 (5,992) (21,490)

Movement during the year 5,992 15,498

Closing balance - (5,992)



19. RECONCILIATION OF NET CASh FLOW FROM OPERATING ACTIvITIES TO NET SuRPLuS/(DEFICIT)

2012/13 2011/12

R’000 R’000

NetSurplus/(Deficit)asperStatementofFinancialPerformance 89,995 134,234

Adjustedfornon-cashitems:

Depreciationandamortisation 2,130 (2,584)

Restatement of Reserves - (31,672)

(Profit)/lossondisposalofProperty,PlantandEquipment 5 363

Baddebtswrittenoff 118 106

Adjustedforitemsseparatelydisclosed

InvestmentIncome (21,295) (18,664)

FinanceCosts - -

Adjustedforworkingcapitalchanges:

(Increase)/decreaseinreceivables 1,203 (3,639)

Increase/(decrease)inpayables 26,979 (48,730)

(Increase)/decreaseininventory (2) (54)

Cash generated from/(utilised in)operations 99,133 29,360

20. CONTINGENCIES

Surplus Funds

IntermsofthePFMA,allsurplusfundsasatyear-endmaybeforfeitedtoNationalTreasury.Asatyear-end,thisamountcouldnotbequantifiedasNationalTreasuryhasnotdefinedsurplusfunds.NoformalapprovalhasbeenobtainedfromNationalTreasurytoretainsurplusfunds,howevertheapplicationhasbeensubmittedtoNationalTreasurytoretainfundsonthe31May2013.

AdministrationReserve 2,565 4,084

Employer grants Reserve - 33

DiscretionaryGrantsReserve 450,483 358,935

Unappropriated Surplus

Total Funds as per Statement of Financial Position 453,048 363,052

21. OPERATING LEASES

Totaloffutureminimumleasepaymentsundernon-cancelableleases:

Not later than one year 2,970 1,218

Laterthanoneyearandnotlaterthanfiveyears 7,519 -

Laterthanfiveyears

10,489 1,218

Theoperatingleasesrelatestobuildingpremisesusedasofficeaccommodation.ThecurrentleaseagreementsinDurban,for2ndand3rdfloorofficepremisesinUmdoniCentre,Pinetown,hasbeenextendedto31March2016.TheCapeTownandJohannesburgofficeswillmovetonewpremises at the end of May 2013.


22. MATERIAL LOSSES THROUGH CRIMINAL CONDUCT, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE

Fruitless and Wasteful Expenditure

Interest on Finance Lease / Cancellation of MIS / Cancellation of Discretionary Grant Workshops

2012/13 2011/12

R’000 R’000

ReconciliationofFruitlessandWastefulExpenditure

Relatingtocurrentyear 170 27

Fruitless and Wasteful Expenditure 170 27

Irregular Expenditure

SCM Legislative regulations not adhered to

ReconciliationofIrregularExpenditure

Relatingtocurrentyear 3,794 -

Irregularexpenditureawaitingcondonation 3,794 -

Theaboveirregularexpendituredidnotresultfromfundsbeingincorrectlyspent,butfromnon-compliancetocertainrequirementsinthePPPFregulationsof2011.TheirregularexpenditurehasbeencondonedbytheFP&MSETABoardandisawaitingcondonationfromNationalTreasury.


23. FINANCIAL INSTRUMENTS

InthecourseoftheSETAoperationsitisexposedtointerestrate,credit,liquidityandmarketrisk.TheSETAhasdevelopedacomprehensiveriskstrategyintermsofTR28.1inordertomonitorandcontroltheserisks.Theriskmanagementprocessrelatingtoeachoftheserisksisdiscussedunder the headings below.

Interest rate risk

TheSETAmanagesitsinterestrateriskbyinvestinginthefinancialinstitutionsapprovedbyNationalTreasury.

TheSETA’sexposure to interest rate riskand theeffective interest ratesonfinancial instrumentsat Statementof FinancialPositiondateare as follows:

Floating rate Non-interest bearing

AmountR’000

Effective interest rate

AmountR’000

TOTAL R’000

Year ended 31 March 2013

Assets

Cashandcashequivalents 543,734 6% 14 543,748

Receivablesfromnon-exchangetransactions - - 4,204 4,204

Receivablesfromexchangetransactions - - 921 921

TotalFinancialAssets 543,734 6% 5,139 548,873

Liabilities

TradeandOtherPayablesnon–exchangetransactions - - (79,449) (79,449)

TradeandOtherPayables–exchangetransactions - - (2,081) (2,081)

W&RSETAfundsreceivedinadvance - - (852) (852)

TLS - UIF - - (1,086) (1,086)

TLS - dHET - - (2,480) (2,480)

Create SA - - (10,752) (10,752)

department of Arts and Culture - - (1,802) (1,802)

Total financial liabilities - - (98,503) (98,503)

Year ended 31 March 2012

Totalfinancialassets 423,920 6% - -

Receivablesfromnon-exchangetransactions

Receivablesfromexchangetransactions

Total financial liabilities 423,920 - - -



Credit risk

Financialassets,whichpotentiallysubjecttheSETAtotheriskofnon-performancebycounterpartiesandtherebysubjecttocreditconcentrationsofcreditrisk,consistmainlyofcashandcashequivalents,investmentsandaccountsreceivable.Themaximumexposuretocreditriskisequaltothecarryingamountofthefinancialinstruments.

The Ageing of Trade and Other Receivable from Non-Exchange Transactions:

2012/13 2011/12

Gross Impairment Gross Impairment

Past due 31 - 120 days 2,503 - 2,368 -

The Ageing of Trade and Other Receivable from Exchange Transactions:

Past due 0 - 30 days 310 - 1,031 -

Past due 31 - 120 days 184 - 11 -

More than one year - deposits 426 - 112 -

Cash and Cash Equivalents:

Not past due 543,734 - 423,920 -

The SETA limits its treasury counter-party exposure by only dealing with well-established financial institutions approved by National TreasurythroughtheapprovaloftheirinvestmentpolicyintermsofTreasuryRegulations.TheSETA’sexposureiscontinuouslymonitoredbytheExecutiveCommittee.

Credit riskwith respect to levypayingemployers is limiteddue to thenatureof the incomereceived.TheSETAdoesnothaveanymaterialexposuretoany individualorcounter-party.TheSETA’sconcentrationofcredit risk is limitedtothe industry inwhichtheSETAoperates.Nosignificanteventsoccurred in the industryduring thefinancial year thatmayhavean impacton theaccounts receivable thathasnotbeenadequatelyprovidedfor.Accountsreceivablearepresentednetofallowancefordoubtfuldebt.

Liquidity Risk

TheSETAmanagesliquidityriskthroughpropermanagementofworkingcapital,capitalexpenditure.Adequatereservesandliquidresources are maintained.

2012/13 Carrying Amount

Contractual Cash Flows

6 months or less

6 - 12 months 1 - 2 years

TradeandotherPayablesfromexchangetransactions 2,081 2,081 1,277 - 803 note 23.1

2011/12

TradeandotherPayablesfromexchangetransactions 2,001 2,001 1,299 - 701

23. FINANCIAL INSTRUMENTS continued:

Market risk

TheSETAisexposedtofluctuationsintheemploymentmarketforexample,suddenincreasesinunemploymentandchangesinthewagerates.NosignificanteventsoccurredduringtheyearthattheSETAisawareof.

Fair values

TheSETA’sfinancialinstrumentsconsistmainlyofcashandcashequivalents,accountandotherreceivables,andaccountandotherpayables.Nofinancialinstrumentswerecarriedatanamountinexcessofitsfairvalue.

Nofinancialassetwascarriedatanamountinexcessofitsfairvalueandfairvaluescouldbereliablymeasuredforallfinancialinstruments.

Thefollowingmethodsandassumptionsareusedtodeterminethefairvalueofeachclassoffinancialinstruments:

Cash and Cash Equivalents

Thecarryingamountofcashandcashequivalentsapproximatesfairvalueduetotherelativelyshort-termmaturityofthesefinancialassets.

Accounts Receivable

Thecarryingamountofaccountsreceivable,netofallowanceforimpairment,approximatesfairvalueduetotherelativelyshort-termmaturityofthesefinancialassets.InterestisleviedattheprescibedrateasdeterminedbytheActshouldemployerspaySDLlate.Thisinterestisthentransferred to the SETA via dHET.

Accounts Payable

Thecarryingamountofaccountandotherpayablesapproximatesfairvalueduetotherelativelyshort-termmaturityofthesefinancialliabilities.

Foreign Exchange Risk

TheSETAisexposedtoforeignexchangerisksarisingfromcontractswiththeKZNDEDTprojectwherepaymentsaremadetotheUniversity ofLiberec.



24. RELATED PARTY TRANSACTIONS

24.1 Transactions with other SETAs

InterSETAtransactionsandbalancesariseduetothemovementofemployersfromoneSETAtoanother.NoothertransactionsoccurredduringtheyearwithotherSETAs.TheparententityofallSETAsistheDHET.

Thebalancesatyear-endincludedinreceivablesandpayablesare:

2012/13 2011/12

R’000 R’000

NotesAmount of the

transactionAmount receivable/

(payable)Amount of the

transactionAmount receivable/

(payable)

Receivables 9 57 71 - 73

ServicesSETA - 26 - 26

MICT SETA 51 - - -

W&R SETA - 12 - 12

AgriSETA 6 - - 2

ISETT - 27 - 27

FASSET - 6 - 6

Payables 14 (484) (238) - (331)

MerSETA (22) (24) - (5)

MICT SETA (372) (93) - -

CHIETA (45) - - -

CATHSSETA - (93) - (93)

ISETT - - - (175)

AgriSETA - (16) - (10)

CETA (45) - - (15)

ServicesSETA - (12) - (33)

Total (427) (166) - (258)

Theabovetransactionsoccurredundertermsthatwerenolessfavourablethanthoseavailableinsimilararm’slengthdealings.



24. RELATED PARTY TRANSACTIONS continued:

Transactions with other related parties

DuringtheyearmembersoftheAccountingAuthorityandemployeeswererequiredtodisclosetheir interest inanycontractsthattheSETAenteredintowithanoutsideparty.AsaresulttheSETAenteredintothefollowingtransactionswithrelatedparties:

2012/13 R’000

2011/12 R’000

Related party Nature of relationship Transaction type

Amount of the

transaction

Amount receivable/

payable

Amount of the

transaction

Amount receivable/

payable

Payables 15,746 1,392 5,500 1,360

FrameTextiles david Bowen (Authority Member) DiscretionaryGrant - - 133 -

FrameTextiles david Bowen (Authority Member) Mandatory grants 547 86 408 24

Zenzeleni Clothing Andre Kriel (Authority Member) Mandatory grants 54 - 43 3

SACTWU Andre Kriel (Authority Member) DiscretionaryGrant 2,000 - 2,350 -

Bonwit (Seardel group) david Bowen (Authority Member) Mandatory grants 577 268 444 -

Monviso Knitwear (Seardel group) david Bowen(Authority Member) Mandatory grants 272 - 222 37

Monviso Knitwear (Seardel group) david Bowen (Authority Member) DiscretionaryGrant - - 33 -

Prima Toys david Bowen (Authority Member) Mandatory grants 414 41 - 32

Romatex (Seardel group) david Bowen (Authority Member) Mandatory grants 586 71 96 146

PrestigeApparal(SeardelGroup) david Bowen (Authority Member) Mandatory grants 797 60 391 82

PrestigeApparal(SeardelGroup) david Bowen (Authority Member) DiscretionaryGrant 21 - - -

Brits(Non-Woven)Textiles david Bowen (Authority Member) Mandatory grants 55 6 14 36

CapeClothingAssocication Johann Baard (Authority Member) DiscretionaryGrant 83 58 55 -

SAPPI MikeTruelock(AuthorityMember) Mandatory grants 3,883 - 663 -

SAPPI MikeTruelock(AuthorityMember) DiscretionaryGrants 1,781 - - -

PASA Brian Wafawarowa (Authority Member) DiscretionaryGrants - - 144 1,000

CaxtonAssociates daphne Erasmus (Authority Member) Mandatory grants 2,811 21 380 -

CaxtonAssociates daphne Erasmus (Authority Member) DiscretionaryGrants 21 - - -

CTP Limited daphne Erasmus (Authority Member) Mandatory grants 1,483 462 124 -

CTP Limited daphne Erasmus (Authority Member) DiscretionaryGrants 361 319 - -

Levies 7,414 - 8,941 -

FrameTextiles david Bowen (Authority Member) Levies 396 - 821 -

Zenzeleni Andre Kriel (Authority Member) Levies 67 - 46 -

Bonwit (Seardel group) david Bowen (Authority Member) Levies 1,161 - 453 -

Monviso Knitwear (Seardel group) david Bowen (Authority Member) Levies 225 - 414 -

Romatex (Seardel group) david Bowen (Authority Member) Levies 475 - 496 -

PrestigeApparal(SeardelGroup) david Bowen (Authority Member) Levies 544 - 756 -

Prima Toys david Bowen (Authority Member) Levies 372 - 381 -

Brits(Non-Woven)Textiles david Bowen (Authority Member) Levies 40 - 80 -

CaxtonAssociates daphne Erasmus (Authority Member) Levies 2,352 - 2,658 -

CTP Limited daphne Erasmus (Authority Member) Levies 1,782 - 1,776 -

Theabovetransactionsoccurredundertermsthatwerenolessfavorablethanthoseavailableinsimilararm’slengthdealings.



24.2 Transactions with other Government Departments within National Sphere

2012/13 R’000

2011/12 R’000

Related party Transaction typeAmount of the

transactionAmount

receivable/ payableAmount of the

transactionAmount

receivable/ payable

Payables 1 049 - 787 -

EthekwiniMunicipality Supplyelectricity 208 - 276 -

Telkom Telephone usage 841 - 511 -

Total 1 049 - 787 -

24.3 Prior year error

2012/13 2011/12

Intheprioryearpartofthediscretionarygrantswereunderstated

Effect

StatementofFinancialPerformance - 608

StatementofFinancialPosition - -

DiscretionaryAccruals - 608

DiscretionaryReserves - (608)

Inprioryear,discretionarydebtorsandcreditorswerenetted-offdiscretionarycreditors.

Effect

StatementofFinancialPosition

Receivablesfromnonexchangetransactions 36

Tradeandotherpayables-nonexchangetransactions (814)

(778)


25. BUDGET VERSUS ACTUAL FIGURES

TheAnnualFinancialStatementsandthebudgetwerepreparedonthesamebasisofaccounting.AllchangesmadebetweentheapprovedbudgetandthefinalbudgetwhereapprovedbytheAccountingAuthorityandwereduetounforeseencircumstancesduringtheyear.

FP&MSETAbudgetcomparisonwithactualfigures.

Statement of Financial Performance

2012/13R’000 Note Actual

Approved Budget

Approved Reallocations Final Budget Variance

SdL 1 263,316 312,708 - 312,708 (49,392)

AdministrationIncome 34,562 39,088 - 39,088 (4,527)

MandatoryGrantIncome 164,627 156,354 - 156,354 8,273

DiscretionaryGrantIncome 64,126 117,265 - 117,265 (53,139)

InterestandPenalties 2,348 2,876 - 2,876 (528)

InvestmentIncome 21,295 16,798 - 16,798 4,497

W&RSETA-JointCollaborationProject - 851 - 851 (851)

TLS - UIF 334 1,048 - 1,048 (714)

TLS - W&R SETA 3,135 256 - 256 2,879

TLS - dHET 2,972 2,562 - 2,562 410

Other Revenue 171 - - - 171

Total 293,571 337,099 - 337,099 (43,529)

Mandatory grant Expenses 2 (106,634) (125,083) - (125,083) 18,449

DiscretionaryExpenses (57,739) (322,868) - (322,868) 265,129

W&RSETA-JointCollaborationProject-funds expensed - (851) - (851) 851

TLS - UIF (334) (1,048) - (1,048) 714

TLS - W&R SETA (3,135) (256) - (256) (2,879)

TLS - dHET (2,972) (2,562) - (2,562) (410)

AdministrationExpenses 7 (32,762) (39,063) - (39,063) 6,301

AccommodationandMeals (259) (212) (129) (341) 82

AccountingAuthorityFees (274) (382) - (382) 108

Airfares and Travel Costs (2,012) (1,297) (915) (2,212) 200

StaffTravel-Reimbursement (117) (166) - (166) 49

Amortisation (123) (139) - (139) 16

AuditCommittee (31) (41) - (41) 10

Audit Fees (1,927) (3,494) 220 (3,274) 1,347

Bad debts (118) (50) (68) (118) -

Bank Charges (57) (80) - (80) 23

Catering and Refreshments - FunctionsandMeetings (118) (109) (9) (118) -

Cleaning (53) (100) - (100) 47

Advertising (107) (140) - (140) 33




Aproved Budget


ConsultancyandServiceProviderFees (1,092) (970) (134) (1,104) 12

Courier and Postage (102) (78) (23) (101) -

Depreciation (2,007) (2,721) - (2,721) 715

ElectricityandWater (208) (270) - (270) 62

Equipment Rental - (10) - (10) 10

InterestinFinanceLease (32) (36) - (36) 4

ETQA Expenses - Accomodation andAirfares (257) (397) - (397) 140

ETQAExpenses-Printing (75) (50) (25) (75) -

ETQAExpenses-FunctionsandMeetings (22) (575) 200 (375) 353

ETQAExpenses-Travel (185) (191) - (191) 6

ETQAQualityAssurance (117) - (200) (200) 83

ETQACourier - (10) - (10) 10

FinanceCommittee (7) (7) - (7) -

HRandRemunerationCommittee (6) (6) - (6) -

Insurance (253) (264) - (264) 11

Internal audit (678) (700) - (700) 22

Leasing Charges - Equipment (56) (74) - (74) 18

Legal Fees (437) (231) (206) (437) -

Loss on disposal of Property, Plant and Equipment (5) (146) - (146) 142

MotorVehicleHire (110) (116) (70) (186) 76

Vehicle-FuelandLubrication - (25) - (25) 25

Vehicle-Licences - (1) - (1) 1

Vehicle-Maintenance - (10) - (10) 10

OfficeExpenses (105) (256) - (256) 151

PossibleAuditCommitteeInvestigations 9 (106) (10) (96) (106)

PrintingandPublications (264) (252) (12) (264) -

Professional Indemnity - (99) 99 - -

Rent Paid (1,939) (3,245) 686 (2,559) 620

Repairs and Maintenance of building,officeequipmentandcomputers (67) (92) - (92) 25

Computer Expenses - (140) 50 (90) 90

SalariesandStaffRelatedCosts (16,736) (17,851) - (17,851) 1,115

SecurityExpenses (28) (36) - (36) 8

StaffandBoardTraining (67) (236) - (236) 169

StaffWelfare (36) (11) (25) (36) -

Stationery (108) (81) (27) (108) -

SubscriptionsandMemberships (185) (218) - (218) 33

Telephone (841) (1,048) - (1,048) 208

AgM (46) (75) - (75) 29

Workshop - Team building (248) (259) - (259) 11

MIS for FP&M SETA (1,142) (2,055) 684 (1,371) 229

OtherContingencies - - - - -

Net Surplus 89,995 (154,633) - (154,632) (64,637)



25. BUDGET VERSUS ACTUAL FIGURES continued:

Statement of Financial Position Actual Budget variance


Aproved Budget


Non-current assetsProperty, Plant and Equipment and Intangible Assets 8 2,565 2,809 - 2,809 (244)

Current assetsReceivablesfromnon-exchangetransactions 4,204 50 - 50 4,154Receivablesfromexchangetransactions 921 100 - 100 821Inventories 112 88 - 88 24Cashandcashequivalents 3 543,748 194,757 - 194,757 348,992

Total assets 551,550 197,804 - 197,804 353,747

Funds and reservesAdministrationReserve 2,565 2,809 - 2,809 (244)Employer grant Reserve 4 - 100 - 100 (100)DiscretionaryReserve 450,483 180,220 - 180,220 270,263

Current liabilitiesTrade and Other Payables - non–exchangetransactions 5 79,449 10,424 - 10,424 69,026TradeandOtherPayables–exchangetransactions 2,081 2,200 - 2,200 (119)government grants and donor Funding receivedinadvance 12,554 - - - 12,554W&RSETAfundsreceivedinadvance 852 - - - 852W&RSETAfundsreceivedinadvance 1,086 - - - 1,086DHETfundsreceivedinadvance 2,480 - - - 2,480Provisions 6 - 2,052 - 2,052 (2,052)

Total equity and liabilities 551,550 197,804 - 197,804 353,747

Note1 Adecreaseinleviesof16%astherearestillanumberofcompanieswhichhadnotbeentransferredtoFP&MSETAwhenthemergertookplace.

Note2 Apayoutratioof60%wasbudgetedfor,theactualpayoutratioforFP&MSETAwas54%,thisaccountsforthevarianceinactualandbudgeted amounts.

Note3 Thevariancebetweenthebudgetedandactualamountbetweencashandcashequivalent isduetothedelayindiscretionarygrantspending due to funding windows only being opened in November 2012.

Note4 EmployergrantreservewaslessthanbudgetedforasnocompaniesregisteredwithFP&MSETAinthelast6monthsofthefinancialyear.Note5 Thevarianceintradeandotherpayablesnon–exchangetransactionsisduetotheactualmandatorygrantaccrualbeingcalculated

ontwomonthsleviesastwomonthslevydownloadswerereceivedlateandnotallgrantsbeingpaidoutasatyear-end.Thebudgetaccountsforonlyonemonthmandatorygrantaccrual.

Note6 ThisbudgetedprovisionwasforthecompanieswhichfallbelowtheR500,000thresholdandareexemptfrompayinglevies.Theactualprovisionhasbeendisclosedintradeandotherpayablesnonexchange.

Note7 ThetotaladministrativeexpendituretotalledR32,7million.Savingsoccurredonanumberofexpensesincludingauditfees,salaries,MIS,depreciationandofficerent.

Note8 Thevariancebetweenbudgetedandactualfixedassetsisduetothepostponementofthepurchaseofthevideoconferencingequipment,nonewserverswereneededduringthefinancialyear.

Note9 DuringtheyearforensicauditswereconductedonanyreportsreceivedfromtheSETAfraudhotline.


26. COMMITMENTS

Of the balance of R450,5million available in theDiscretionary Reserves at the end ofMarch 2013, R161,5million has been approved andcontractuallycommitted.AmountsforexpensesthathavealreadybeencontractedorincurredandthereforeincludedingrantexpensesintheStatementsofFinancialPerformancearealsoindicated.ArequestfortheaccumulationofthesefundshasbeensubmittedtoNationalTreasuryonthe31ofMay2013.AtthetimeofcompilingtheAnnualFinancialStatements,noreplyhadbeenreceived.Fundingwindowsforthe2012/13approvalswereopenedinAugustandNovember2012,FP&MSETAcouldnotcommitallapprovedfundsbytheendofthefinancialyearasfundshadtobecommittedasthefundsbecameavailableinFP&MSETA’sbankaccountsinordertonotbeover-committed.FP&MSETAhasapprovedmostofthediscretionaryreservesatyearendtovariousspecialprojectsanddiscretionarygrantsinlinewithNSDSIII.

TheCommitmentsnoteshowsthecommitmentscarriedoverfromtheamalgamationofFIETA,CTFLSETAandpartofMAPPP-SETAwhichwasapplicableforNSDSII.

TheFP&MSETAcommitmentsregisterforthefirstyearofexistenceisalignedtoNSDSIII.

Fp&M Seta total CoMMItMentS anD approVeD FUnDS EndMarch2013

NSDSII R

CTFL SETA 31,000

FIETA 2,880

MAPPP-SETA 36,959

SubTotal 70,840

NSdS III

FP&M SETA 90,663

TOTAL 161,503


pARt e: finAnciAl infoRMAtionN

SDSI

II

FP&

M N

SDSI

II O

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/13

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Portion

notyetallo

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InternalFP&

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InternalFP&

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InternalFP&

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InternalFP&

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- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

2,06

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1,

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2,01

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0

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42- - - -

- - - - -

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63

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26

(348

) 9,

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2,41

0 56

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10

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7 86

,166

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28

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-

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37

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3 2,

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3,09

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619

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1,76

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1,93

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Burs

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186

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186

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6,37

0 32

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1,

890

2,54

4 5,

716

WorkExpe

rience/Internshipsin

enti

tiesin

theFP&Mse

ctor

165

1,20

0 -

165

150

1,21

5 3,

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3330

49

5 45

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NSD

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t

Out

put 4

.2.2

.1:

1,68

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,095

-

1,68

0 60

0 12

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77

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68

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9,

680

1,52

7 20

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Secti

on13Ap

pren

ticeships

1,64

0 10

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-

1,64

0 60

0 11

,910

77

,730

68

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9,

650

1,52

7 20

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Secti

on28Ap

pren

ticeships

40

225

-40

-

265

105

75

30

-29

5

NSD

S O

utco

me

4.2.

4: R

elev

ant r

esea

rch

and

deve

lopm

ent a

nd in

nova

tion

capa

city

is

dev

elop

ed a

nd in

nova

tive

rese

arch

pr

ojec

ts e

stab

lishe

d14

011

0-

140

65

185

500

450

50

- 23

5


FP&

M N

SDSI

II O

bjec

tive

Com

mit-

men

ts

Bala

nce

at

Mar

ch 2

012

Unc

omm

it-te

d bu

t ap

prov

ed

fund

s end

of

Mar

ch 2

012

Prio

r Yea

r Er

ror

Com

mit-

men

ts

bala

nce

at M

arch

20

12 re

vise

d

(201

2/13

) Ap

prov

ed

but n

ot y

et

com

mitt

ed20

11/1

2

(201

2/13

) Co

mm

it-m

ents

Dec

2012

(2

011/

12Al

loca

tions

)20

12/1

3 Ap

prov

als

Appr

oved

bu

t not

yet

Com

mitt

ed

2012

/13

Com

mit-

men

ts20

12/1

3

Expe

nditu

re

- Apr

il20

12 to

M

arch

201

3

TOTA

L (c

omm

itted

fu

nds l

ess

expe

nses

)

Out

put 4

.2.4

.3:

Post

gra

duat

e st

udie

s 14

0 11

0 -

140

65

185

500

450

50

- 23

5

NSD

S O

bjec

tive

4.3

Prom

oting

the

grow

th

of a

pub

lic F

ET c

olle

ge sy

stem

that

is

resp

onsi

ve to

sect

or, l

ocal

, reg

iona

l and

na

tiona

l ski

lls n

eeds

and

prio

rities

Out

put 4

.3.2

.2: S

ETAs

iden

tify

FET

colle

ges

with

rele

vant

pro

gram

mes

and

put

in p

lace

pa

rtne

rshi

ps to

offe

r voc

ation

al c

ours

es

and

wor

k ex

perie

nce

for c

olle

ge le

arne

rs-

2,50

0 -

-63

0 1,

870

2,00

0 1,

996

4 81

61,

058

Durban

University

ofTechn

olog

y(DUT)

-54

0 -

--

540

--

-43

2 10

8

EasternCa

peCom

mun

icati

onForum

-

216

--

-21

6 -

--

42

174

Esay

idi F

ET C

olle

ge

-10

8 -

--

108

--

--

108

Wes

tern

Cap

e FE

T Co

llege

(Pty

) Ltd

CP

T 10

(b)

-10

8 -

--

108

--

-94

14

Cape

Pen

insulaUniversity

ofTechn

olog

y(C

PUT)

CPT

7 -

70

--

-70

-

--

-70

FurntechCPT

5-

300

--

-30

0 -

--

60

240

NM

MU

- Sa

asve

ld C

PT 9

-

105

--

-10

5 -

--

-10

5

Wes

tern

Cap

e FE

T Co

llege

(Pty

) Ltd

CP

T 10

(a)

-10

8 -

--

108

--

-94

14

Wes

t Coa

st F

ET

-22

5 -

--

225

--

--

225

dUT

-90

-

--

90

--

-90

-

PAM

SA

-45

0 -

-45

0 -

--

--

-

DUTincollabo

ratio

nwith

SarisforG

ood

Karm

a -

180

--

180

--

--

--

Una

llocatedfund

s-

--

--

-1,

450

1,45

0-

--

InternalProject:Lea

dSETA

project

--

--

--

550

546

4 4

-

4.3.

3 W

ork

with

FET

’s in

all

geog

raph

ics t

o pr

omot

e th

e se

lecti

on o

f FET

qua

lifica

tions

am

ongs

t sch

ools

in th

e re

spec

tive

geog

raph

ic a

reas

--

--

--

250

250

--

-

4.4.

2 W

orki

ng p

artn

ers i

denti

fied

and

colla

bora

tive

part

ners

hips

forg

ed-

--

--

-10

0 10

0-

--



SDSI

II co

ntinu

ed:

FP&

M N

SDSI

II O

bjec

tive

Com

mit-

men

ts

Bala

nce

at

Mar

ch 2

012

Unc

omm

it-te

d bu

t ap

prov

ed

fund

s end

of

Mar

ch 2

012

Prio

r Yea

r Er

ror

Com

mit-

men

ts

bala

nce

at M

arch

20

12 re

vise

d

(201

2/13

) Ap

prov

ed

but n

ot y

et

com

mitt

ed20

11/1

2

(201

2/13

) Co

mm

it-m

ents

Dec

2012

(2

011/

12Al

loca

tions

)20

12/1

3 Ap

prov

als

Appr

oved

bu

t not

yet

Com

mitt

ed

2012

/13

Com

mit-

men

ts20

12/1

3

Expe

nditu

re

- Apr

il20

12 to

M

arch

201

3

TOTA

L (c

omm

itted

fu

nds l

ess

expe

nses

)

NSD

S O

utco

me

4.5.

1: T

rain

ing

of e

mpl

oyed

w

orke

rs a

ddre

sses

criti

cal s

kills

, ena

blin

g im

prov

ed p

rodu

ctivi

ty, e

cono

mic

gro

wth

an

d th

e ab

ility

of t

he w

ork

forc

e to

ada

pt

to c

hang

e in

the

labo

ur m

arke

t

Out

put 4

.5.1

Pla

n fo

r opti

mum

usa

ge o

f w

orkp

lace

s for

mul

ated

in c

olla

bora

tion

with

stak

ehol

ders

--

--

--

2,00

0 47

1 1,

529

1,52

9 -

Out

put 4

.5.3

:-

--

--

- 1,

500

838

662

662

-

4.5.3Ag

reem

entsputin

placewith

establish

edbod

iesa

tthe

workp

lace

fora

ctivepartic

ipati

onin

ensuringthe

implem

entatio

nofaccreditedtraining

--

--

--

1,00

0 34

2 65

8 65

8-

Out

put 4

.5.1

.3:C

ross-sectoralp

rojectsa

re

esta

blish

ed to

add

ress

skill

s nee

ds a

long

localsup

plychainsaim

edatsup

porting

localecono

micdevelop

men

t-

1,00

0-

-1,

000

-50

0 49

6 4

4-

Out

put 4

.5.1

.2:Sectorp

rojectsa

reputin

placetoadd

resssp

ecificsectorsk

illsg

aps

-1,

500

--

1,50

0-

--

--

-

Out

put 4

.6.3

.2: S

ETAs

est

ablis

h qu

ality

pilotp

rojects

882

4,87

0-

882

2,15

0 3,

602

--

-2,

801

801

Nati

onalBargainingCo

uncilo

fthe

Clothing

Man

ufacturin

gIndu

stry

-15

0 -

-15

0-

--

--

-

SACT

WUEDU

PEGProject

-2,

000

--

-2,

000

--

-2,

000

-

CEPP

WAW

UTrainingforR

etrenche

dW

orke

rs

-2,

000

--

2,00

0-

--

--

-

SouthAfric

anForestryCo

ntractors

Associati

on

252

- -

252

- 2

52-

--

81

171

CEPP

WAW

U

630

- -

630

-63

0 -

--

-63

0

FAW

U S

kills

Pro

gram

mes

-

720

--

-72

0 -

--

720

-

Ring

fenc

ing

for d

isab

led

(4%

) 18

0 1,

958

90

270

- 2,

229

6,91

8 6,

918

- 1,

115

1,11

4

BathoSo

cio-Psycho

logyEmpo

wermen

tOrgan

izatio

n-

159

--

-15

9 -

--

159

-

SewAfrica

-25

0 -

--

250

--

-20

0 50

Mas

haba

mba

ne d

isabl

ed g

roup

-

159

--

-15

9 -

--

-15

9

Mpu

mul

anga

Ski

lls T

rain

ing

Cent

re

-15

9 -

--

159

--

-11

1 48

Phap

ham

ane

disa

bled

Cen

tre

-12

2 -

--

122

--

-37

85


FP&

M N

SDSI

II O

bjec

tive

Com

mit-

men

ts

Bala

nce

at

Mar

ch 2

012

Unc

omm

it-te

d bu

t ap

prov

ed

fund

s end

of

Mar

ch 2

012

Prio

r Yea

r Er

ror

Com

mit-

men

ts

bala

nce

at M

arch

20

12 re

vise

d

(201

2/13

) Ap

prov

ed

but n

ot y

et

com

mitt

ed20

11/1

2

(201

2/13

) Co

mm

it-m

ents

Dec

2012

(2

011/

12Al

loca

tions

)20

12/1

3 Ap

prov

als

Appr

oved

bu

t not

yet

Com

mitt

ed

2012

/13

Com

mit-

men

ts20

12/1

3

Expe

nditu

re

- Apr

il20

12 to

M

arch

201

3

TOTA

L (c

omm

itted

fu

nds l

ess

expe

nses

)

ShelteredEm

ploymen

tFactorie

s-

244

--

-24

4 -

--

171

73

SowetoAssociati

onofP

ersonswith

Disabiliti

es

-18

3-

--

183

--

-18

3 -

Izand

la Z

enko

si Co

mm

unity

dev

elop

men

t Ce

ntre

-

75

--

-75

-

--

75

-

Fila

delp

hia

-17

1 -

--

171

--

--

171

Basim

odi T

rain

ing

90

--

90

-90

-

--

90

-

Um

gung

undl

ovu

FET

Colle

ge

- 43

7 -

- -

437

--

--

437

Joha

nnesbu

rgSocietyfo

rthe

Blin

d-

- 90

90

-90

-

--

90

-

Phat

sipha

tsi

90

- -

90

-90

-

--

- 90

Um

gung

undl

ovu

FET

Colle

ge

--

--

--

244

244

--

-

Afric

anDream

Childrenan

dYouth

Developm

entP

roject

--

--

--

244

244

--

-

Aran

da L

earn

ersh

ip C

olle

ge (P

ty) L

td

--

--

--

366

366

--

-

Bam

bana

ni d

isabi

lity

Cent

re

--

--

--

366

366

--

-

BoseleHan

dcraft

--

--

--

600

600

--

-

DEAF

Fed

erati

onofS

outhAfrica(Deafsa)

--

--

--

183

183

--

-

DEAF

Fed

erati

onofS

outhAfrica(Deafsa)

--

--

--

183

183

--

-

DEAF

Fed

erati

onofS

outhAfrica(Deafsa)

--

--

--

183

183

--

-

Elim

ofoTrad

ingan

dProjects

--

--

--

366

366

--

-

Hope

Tra

inin

g an

d de

velo

pmen

t Cen

tre

--

--

--

266

266

--

-

Mba

bana

ni d

isabi

lity

Cent

er

--

--

--

366

366

--

-

SowetoAssociati

onofP

ersonswith

Disabiliti

es

--

--

--

305

305

--

-

Acceleratin

gHigh

erEdu

catio

nan

dDe

velopm

entInitia

tive

--

--

--

366

366

--

-

Sini

than

do H

ome

Com

mun

ity B

ase

Care

-

--

--

-36

6 36

6-

--

InjiyaTrad

ingan

dProjects

--

--

--

244

244

--

-

Izand

la Z

enko

si Co

mm

unity

Cen

tre

--

--

--

110

110

--

-

Lese

di M

ohau

dev

elop

men

t Cen

tre

No

2 (100

%RuralArea)

--

--

--

100

100

--

-

Mon

diSou

thAfrica,Richa

rdsB

ayM

ill

--

--

--

60

60-

--

Wes

tern

Cap

e FE

T Co

llege

(Pty

) Ltd

-

--

--

-90

0 90

0-

--

University

ofS

tellenb

osch(D

ept.ofForest

andWoo

dScience)

--

--

--

500

500

--

-

Cape

Men

tal H

ealth

-

--

--

-60

0 60

0-

--



SDSI

II co

ntinu

ed:

FP&

M N

SDSI

II O

bjec

tive

Com

mit-

men

ts

Bala

nce

at

Mar

ch 2

012

Unc

omm

it-te

d bu

t ap

prov

ed

fund

s end

of

Mar

ch 2

012

Prio

r Yea

r Er

ror

Com

mit-

men

ts

bala

nce

at M

arch

20

12 re

vise

d

(201

2/13

) Ap

prov

ed

but n

ot y

et

com

mitt

ed20

11/1

2

(201

2/13

) Co

mm

it-m

ents

Dec

2012

(2

011/

12Al

loca

tions

)20

12/1

3 Ap

prov

als

Appr

oved

bu

t not

yet

Com

mitt

ed

2012

/13

Com

mit-

men

ts20

12/1

3

Expe

nditu

re

- Apr

il20

12 to

M

arch

201

3

TOTA

L (c

omm

itted

fu

nds l

ess

expe

nses

)

Ring

fenc

ing

for R

ural

Dev

elop

men

t (10

%)

808

4,44

8 -

808

- 5,

256

26,4

69

19,4

09

7,51

0 4,

242

8,52

4

Parowkloo

fInvestm

entst/aL&XProjectV

-21

6 -

--

216

--

-21

6 -

Enhl

azan

e (d

isabl

ed)

-10

8 -

--

108

--

-32

76

ForestrySkillsIn

jecti

on

-50

0 -

--

500

--

-25

0 25

0

Tirh

ani S

kills

Tra

inin

g -

72

--

-72

-

--

-72

AllianceforP

oor,Orpha

nedan

dU

nem

ploy

ed

-30

0-

--

300

--

-24

0 60

Eski

lz ( a

nd C

o-op

s)

-40

0 -

--

400

--

-80

32

0

dUT

- Inj

ija In

terio

rs

-14

4 -

--

144

--

--

144

Eyom

amainAgricultureand

Rural

deve

lopm

ent K

ZN

-46

0 -

--

460

--

-36

8 92

ZusboForestryCon

tractors

-14

4 -

--

144

--

-10

1 43

Mon

disaCo-op

erati

ve

-45

0 -

--

450

--

-36

0 90

Tipf

uxen

i Com

mun

ity d

evel

opm

ent

-45

0 -

--

450

--

-30

0 15

0

Nati

onalDep

artm

ento

fPub

licW

orks

-12

8 -

--

128

--

--

128

Tsak

rhul

a Kh

ensa

ni T

radi

ng

-25

2 -

--

252

--

-25

2 -

gene

sis P

ower

Tra

ding

Ent

erpr

ise

-32

4 -

--

324

--

-32

4 -

Mitche

llsPlainSkillsCen

tre

-50

0 -

--

500

--

-50

0 -

Furn

iture

Wor

ld P

rivat

e Co

llege

60

0 -

- 60

0 -

600

--

450

450

600

dith

oloa

na T

sa S

etsh

aba

102

- -

102

-10

2 -

--

102

-

Striv

ing

Min

ds

106

- -

106

-10

6 -

--

106

-

Wes

tern

Cap

e FE

T Co

llege

(Pty

) Ltd

-

--

--

-75

0 75

0 -

--

Striv

ing

Min

ds

--

--

--

216

- 21

6 -

216

Aran

da L

earn

ersh

ip C

olle

ge (P

ty) L

td

--

--

--

366

366

- -

-

Bam

bana

ni H

ome

Base

Car

e -

--

--

-21

6 21

6 -

--

Bles

sings

Are

For

ever

-

--

--

-90

0 -

900

180

720

Botle

Buh

leOldAgeOrgan

isatio

n-

--

--

-21

6 (7

2)

288

-28

8

BravoSp

ace

--

--

--

500

500

--

-

BravoSp

ace

--

--

--

216

216

--

-

Ditholoa

natsaSetsha

baFou

ndati

on

--

--

--

360

-36

0 -

360

ForestrySkillsIn

jecti

on

--

--

--

500

- 50

0 -

500

Furn

iture

Wor

ld T

rain

ing

Cent

re

--

--

--

500

(50)

55

0 -

550


FP&

M N

SDSI

II O

bjec

tive

Com

mit-

men

ts

Bala

nce

at

Mar

ch 2

012

Unc

omm

it-te

d bu

t ap

prov

ed

fund

s end

of

Mar

ch 2

012

Prio

r Yea

r Er

ror

Com

mit-

men

ts

bala

nce

at M

arch

20

12 re

vise

d

(201

2/13

) Ap

prov

ed

but n

ot y

et

com

mitt

ed20

11/1

2

(201

2/13

) Co

mm

it-m

ents

Dec

2012

(2

011/

12Al

loca

tions

)20

12/1

3 Ap

prov

als

Appr

oved

bu

t not

yet

Com

mitt

ed

2012

/13

Com

mit-

men

ts20

12/1

3

Expe

nditu

re

- Apr

il20

12 to

M

arch

201

3

TOTA

L (c

omm

itted

fu

nds l

ess

expe

nses

)

gene

sis P

ower

Tra

ding

Ent

erpr

ise-

--

--

-50

0 -

500

100

400

gene

sis P

ower

Tra

ding

Ent

erpr

ise

--

--

--

288

-28

8 86

20

2

gene

sis P

ower

Tra

ding

Ent

erpr

ise

--

--

--

324

- 32

4 97

22

7

Hope

Tra

inin

g an

d de

velo

pmen

t Cen

tre

--

--

--

216

- 21

6 -

216

Mayflo

werScien

ceProjects

--

--

--

266

- 26

6 80

18

6

MP

Mni

si Em

broi

dery

and

Sew

ing

--

--

--

216

- 21

6 -

216

Mpa

m T

radi

ng C

C -

--

--

-72

72

-

--

Mpu

mal

anga

Ski

lls T

rain

ing

Colle

ge

--

--

--

216

216

--

-

Orano

bSo

lutio

n(Pty)Ltd

--

--

--

216

216

--

-

Orano

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60



CTFL

Commitments carried over from CTFL SETA after the amalgamationSETA FINANCE ANALYSIS

Closing Balance at March 2012

Prior year adjustment

Revised balance2011/12

Current Expenditure TOTAL

COMMITMENTS

NSDS 2 PROjECTS

Indicator 1.2

Ind1.2A:Designandprintcriticalskillsguideand distribute to learners 73 - 73 - 73

SUBTOTAL OBjECTIVE 1 73 - 73 - 73

OBjECTIVE 2:

Ind2.2A:SkillsDevelopmentProjectsforsmallcompanies 779 - 779 - 779

Project3:Mechanician:SmallCompanies 30 - 30 - 30

Project7:CTFLSMME:SmallCompanies 100 - 100 - 100

Project9:SITTMechanicianOperatorsProject2 53 - 53 - 53

Project10:SITTmodulartrainingcourseonsewingmachinerepairsandmaintenanceofindustrialmachines 50 - 50 - 50

Ind2.2B:ETDPBursariesforsmallcompanies 254 - 254 - 254

Ind 2.2C: Learnership grants for smallcompanies 860 - 860 - 860

Ind 2.2d: Management Bursaries for smallcompanies 276 - 276 - 276

Ind2.2E:SectorSkillsFacilitation(WSPs) 338 - 338 338 -

Ind2.5SupporttosmallBEEfirmsandco-operatives 594 - 594 - 594

Ind 2.7 Bursaries support to workers to achieveABET 4,598 (1,934) 2,664 165 2,499

Ind 2.8A: Learnership grants for workers (18.1 learners and Ind. 4.1B: Learnership grants for unemployed learners) 13,986 2,312 16,298 1,708 14,590

Ind2.8B:TechnologistBursariesforWorkersandInd.4.1A:TechnologistBursariesforunemployed learners 4,387 (2,343) 2,044 167 1,877

Ind 2.8C: Management Bursaries for workers 4,740 3,941 799 44 755

Ind2.8E:SewingMachineMechanics 840 - 840 - 840

Ind 2.8F Work Study Bursaries 255 - 255 - 255

Ind2.8GTextileApprentices 3,260 (10) 3,250 112 3,138

Ind2.8H:Liberec(JIPSA)MastersProgramme 3 - 3 - 3

Ind2.8I:Project1ComputerPattermaking 353 - 353 - 353

Ind2.8I:Project4CPUTHighLevelOperator 9 - 9 - 9

Ind2.8I:Project5CPUTAtlantisCluster 100 - 100 - 100

Ind2.8I:KZNDEDTandCTFLSETAjointprojectseminar and CPd programmes 495 - 495 16 479

SUBTOTAL OBjECTIVE 2 36,360 (5,916) 30,444 2,550 27,894






OBjECTIVE 3:

Ind 3.2: Support to NLPs, CBOs and NgOs (accreditationandgrantsupport) 22 - 22 - 22

SUBTOTAL OBjECTIVE 3 22 - 22 - 22

OBjECTIVE 4:

Ind4.2WorkExperienceGrants(includestechnologistbursariesforR1,635,000) 2,110 (1,773) 337 17 319

Ind4.3:NewVentureCreation(NVC)Grants 434 - 434 - 434

Ind4.3:Project1:DUTNVCManagement Programme 201 - 201 - 201

SUBTOTAL OBjECTIVE 4 2,745 (1,773) 972 17 954

OBjECTIVE 5:

Project2:ApprenticeshipProjectProposal:UnitStandardsProject 1 - 1 - 1

Project3:MechanicianLevel3and4Qualification - - - - -

Project4:LearnershipOpinion 15 - 15 - 15

Ind 5.3d: Improve training provision for the FootwearandLeatherSector(FITF) 478 - 478 - 478

Project8:LeatherBusaryFund 85 - 85 - 85

Ind5.3E:ImplementNQFlevel1learnershipsatidentifiedFETColleges 155 - 155 - 155

Project1:ETQANOFLevel1 10 - 10 - 10

Aranda-NQF1clothingqualification 15 - 15 - 15

Project3:FETCollege:NQFLevel1Rollout-Thekweni College 113 - 113 - 113

Ind5.4A:CapeTownFashionFestival 8 - 8 - 8

Ind5.4B:Marketing 361 - 361 361 -

Project1:SACTWU:MonthlyPayment:Labour support 5 - 5 5 -

Project2:StrategicPlanning 203 - 203 - 203

SITT Cross skills training for industrial sewing machines(NQF2) 145 - 145 - 145



CTFL continued:





OBJECTIvE 5 continued:

QCTOConversionofunitstandards(R175,000specialprojectR200,000FITFFUND) 10 - 10 - 10

Surplus available for learnerships or specialprojects 89 - 89 - 89

ProjectAdministrationCosts 78 - 78 3 75

TrainingLayoffScheme-CTFL 1,661 - 1,661 1,249 412

Advanceincome 3,167 - 3,167 (334) 3,501

TLS - UIF (3,167) - (3,167) 334 (3,501)

Advanceincome 3,317 - 3,317 (3,135) 6,452

TLS - W&R (3,317) - (3,317) 3,135 (6452)

W&RSETAlearnershipfundsstilltobereceived 770 - 770 - 770

W&RSETAlearnershipfundstobeallocatedtocompanies (770) - (770) - (770)

Advanceincome 1,247 - 1,247 (2,972) 4,219

TLS -dHET (1,247) - (1,247) 2,972 (4,219)

Projects approved in March 2010 - committed in 2010/11

DUTPatternMakingCourse 50 - 50 - 50

TechnicalTraining 120 - 120 - 120

Aranda-NQF1ClothingManufacturingProcessesNQF1 52 - 52 - 52

Western Cape Learnership College: Team leader supervisorytraining-subjecttooutcomeofbenchmarkreportaspartofW&RSETAcollaborationproject 40 - 40 40 -

NULAW-GlobalEconomyworkshop 20 - 20 - 20

SUBTOTAL OBjECTIVE 5 3,714 - 3,714 1,658 2,057

TOTAL COMMITMENTS NSDS 2 42,914 (7,689) 35,225 4,225 31,000

TOTAL COMMITMENTS NSDS 1 and NSDS 2 42,914 (7,689) 35,225 4,225 31,000

Note:AR7,6millionadjustmentwasmadeduetoawardlettersbeinggiventocompaniesforgrantapprovalsintheformerCTFLSETA.Thesefundswerenotcontractuallycommittedatyear-end.


FIETA

Closing Balance as at March 2012

Current Expenditure Total

Authority 62 - 62

Chamber40%ContributiontoAuthority 42 - 42

QualityManagementSystemFIETAandProviders 1 - 1

StrategicDisabilityProject 6 - 6

AmahlatiEmergingContractorsProject 11 - 11

WorkingforFireandWoodlands:Contractortraining 3 - 3

Forestry Chamber total 2,667 (2) 2,665

AllocatedforpromotionofForestryChamberObjectives 73 - 73

GenerationofUnitStandardsandQualificationsinForestry 80 - 80

Saasveld Bridging Course 3 - 3

Saasveldsecondyear3monthspractical 8 - 8

NSDSExhibitions 6 - 6

ForestryDiscretionaryProjects 1 - 1

ABETFacilitatorTraining 1 - 1

UniversityofStellenbosch-ContractorProject 42 - 42

development and support for Broad Based BEE 30 - 30

SDFCapacityBuildingonscarceandcriticalskills 1 - 1

SupportforNGOs,CBO,Community-basedCooperatives 41 - 41

WorkExperiencegrantforFETandHETGraduates 76 - 76

NVCProject 78 - 78

DevelopmentandsupportforSectoralorOccupationalExcellence 15 - 15

NSFConstituencyCapacityBuildingandAdvocacy 1 - 1

NQFInsitutionsSupportProject 1 - 1

StrategicABETInterventions 1 - 1

SMME 3 23 - 23

CostandManagementAccountingforForestrycontractors 38 - 38

Learnerships in support of NSdS 2.8 and 4.1 (149) - (149)

Artisan(Apprentice/Interns)DevelopmentProject 663 - 663

SectorBursaries 163 - 163

ForestryCommunity-based-projectsUpskillingProject 133 - 133

ScarceSkillsLearnershipProject2007-2008 7 - 7

Working on Fire 105 - 105

Learnertracking 3 - 3

Fire Managers Hand Book 49 - 49

GroundBasedHarvestingHandBook 1 - 1

DAFFExperientialLearners 2 - 2

Small Forest Enterprise Programme 1 - 1

LandsClaimsInitiative 138 - 138

MunicipalitiesFireFightingProject 249 - 249

ArboricultureQualification 1 - 1

Programme for the disabled 2 - 2



FIETA continued:



ABET 1 - 1

Bursaries 757 (2) 755

CapacityBuilding-Labour 6 - 6

MonitoringofProjects 16 - 16

Furniture Chamber 310 (588) (278)

DevelopmentofStandards,QualificationsandLearnerships 1 - 1

ABET 1 - 1

Learnerships - (588) (588)

StakeholderCommunication 4 - 4


Usindiso Ministries Upholstery for Abused Women 40 - 40

Scarceandcriticalskillsproject 1 - 1

DevelopmentofScarceandCriticalSkillsguides 1 - 1

Researchandimpactstudies 11 - 11

ArtisanDevelopment:MTASection28Project2007-2008 229 - 229

Furnwood Bursaries 2 - 2

disability Learnerships 8 - 8

Pulp and Paper Chamber 201 300 (99)

AllocatedforpromotionofPulpandPaperChamberObjectives 1 - 1

SubventionoftheBTechprogrammeatDUT 37 - 37

Develop,implementandincentivise 1 - 1


IndustryTrainingSchool 10 - 10


SupportforNGOs,CBO,Community-basedCooperatives 10 - 10

NSFConstituencyCapacityBuildingandAdvocacy 57 - 57

PulpandPaperDisabilityProject-DEAFSA(WesternCape) 31 - 31

StrategicPulpandPaperABETProject 26 - 26

Coaching,MentoringandAssessorTraining 22 - 22

NVC 1 - 1

ProjectSortIt-PAMSAPRASA - (300) (300)

MinisterialPriorities 1 - 1




Wood Products Chamber 530 360 170

WoodProductsSGB 2 - 2

LowCostSawmillingNetworkInitiative 78 - 78

Discretionary:ChrisHaniDistrictMunicipality 17 - 17

CEPPWAWU-CapacityBuilding 10 - 10

DevelopmentofScarceandCriticalSkillsGuides 1 - 1

development and support for Broad Based BEE 35 - 35


SupportforNGOs,CBO,Community-basedcooperatives 4 - 4

NVCProject 97 - 97

DevelopmentandsupportforSectoralorOccupationalExcellence 49 - 49

NSFconstituencycapacitybuildingandadvocacy 5 - 5

SME Support Programme 52 - 52

Furniture design: e-Learning 1 - 1

DiscretionaryGrants-January2010 1 - 1

MinisterialPriorities 175 - 175

3,770 (890) 2,880

Commitments carried over from MAPPP-SETA ‘000

Balance at Year end 2011/12

Current Expenditure Balance

CommitmentsBalance at Year

end 2011/12Prior Year

AdjustmentRevised Balance

Savings reallocated todiscretionary

reservesCurrent

Expenditure Balance

Bursaries 14 - 14 - - 14

Internships 360 - 360 - 26 334

Learnerships 97 - 97 - 97 -

Skills Programmes 454 - 454 - - 454

Mentorships 10 - 10 - - 10

ISOE 1,000 - 1,000 - 100 900

Apprenticeships 37,890 8,478 46,368 8,551 2,570 35,248

Total 39,825 8,478 48,303 8,551 2 ,793 36,959

Note:Inthepreviousfinancialyear,FP&MSETAreceivedaqualifiedauditontheex-MAPPPSETAapprenticeshipregister.During2012/13afullanalysiswasdoneontheapprentceshipsinhereitedfromex-MAPPPSETAandthecommitmentsregisterfortheex-MAPPP-SETAapprenticeshipcommitmentshasnowbeencorrected.


AnneXuReS

anneXUre 1: SpeCIal proJeCt alloCatIonS to SUpport proGraMMeS lInKeD to StrateGIC GoalS

PROGRAMME NAME: 4.2 INCREASING ACCESS TO OCCUPATIONALLY DIRECTED PROGRAMMES

Special projects relating to work experience

York Timbers (Rural) 20 learners R600,000

HighburySafikaMedia 3 learners R30,000

SouthAfricanHistoryOnline 10 learners R750,000

Special projects to qualify apprentices via RPL

Tek-mation 50 learners R250,000

PROGRAMME NAME: 4.3 PROMOTING THE GROWTH OF A RESPONSIVE PUBLIC FET COLLEGE SYSTEM

Special projects relating to work experience / internship for NCv graduates

SAPPISouthernAfrica 40 learners R1,200,000

PaperManufacturersofSouthAfrica(PAMSA) 80 learners R800,000

Ngaphakathi Professionals 15 learners R450,000

Special project relating to re-tooling & re-skilling of unemployed FET/hEI graduates

IMPI Training / Northlink FET 30 NCV students R216,000

PROGRAMME NAME: 4.6: ENCOURAGING AND SUPPORTING COOPERATIVE, SMALL ENTERPRISE, WORKER INITIATED, NGO AND COMMUNITY TRAINING INITIATIVES

Special project funding for SMMEs, CBOs, Co-operatives and NGOs

SMMEs supported:

Simama Training and Business 20 learners R144,000

WhenNatureCallsCoffins 20 learners R500,000

Clotex 20 learners R500,000

TholulwaziProtectiveWorkshop 30 learners R266,000

Tsakarhula Khensani Trading 30 learners R266,000

ZamokuleProtectiveWorkshop 30 learners R216,000 CBOs supported:

Nkungumathe Youth development Forum (NPO) 25 learners R625,000

BreipaalCivilSocietyOrganisation 20 learners R600,000

AfricanDreamChildrenandYouthDevelopmentProject(Disability) 20 learners R244,000

Bambanani disability Centre 30 learners R366,000

BoseleHandcraft(Disability) 20 learners R600,000

Izandla Zenkosi Community Centre (disability) 20 learners R110,000

Lesedi Mohau development Centre 11 learners R99,880


Co-operatives supported:

SeqhobongManufacturing&CateringCo-operative 15 learners R108,000

HlokolosiCo-operative 15 learners R108,000

SnacoStreamersCo-operative 20 learners R144,000

ReahloCo-operative 20 learners R144,000

LizybondCo-operative 20 learners R144,000

IphupoCo-operative 20 learners R500,000

DibonangweCo-operative 20 learners R144,000

PhatsimangCo-operative 10 learners R72,000

OREThusitseHoFihlaMonaCo-operative 20 learners R144,000

NGOs supported:

Mbabanani disability Centre 30 learners R366,000

SowetoAssociationofPersonswithDisabilities 25 learners R305,000

Sinithando Home Community Base Care 30 learners R366,000

Cape Mental Health 20 learners R600,000

DeafFederationofSouthAfrica(DEAFSA)-3projects 45 learners R549,000

PROGRAMME NAME: 4.8 BUILDING CAREER AND VOCATIONAL GUIDANCE

SingisiForestProducts:ToeducateGrade12 learners in20ruralhighschoolsoncareeropportunities in forestry,sawmillingandengineeringsectorsinvolvingscarceskills.

R22,230

WesternCapeFurniture Initiative:Scarceandcritical skills in supportofgrowthanddevelopmentof the furnituresector.

R250,000

TheUniversity of Stellenbosch Forest andWood Science Department is the only of its kind in South Africa thatprovidestrainingtowardsdegreesineitherforestryresourcemanagementorwoodproductsscience.Projectaimstoemployavocationalguidancepractitionertodoroadshowsandopencareerdayscountrywide.

R250,000

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