Select Committees of Labour, Public

Enterprises& Economic and Foreign Affairs

25 October 2005Presented by: Mr. Joel Dikgole (CEO –

W&RSETA)

OVERVIEW OF PRESENTATION

W&RSETA PROFILEW&RSECTOR PROFILE AFS & AUDIT RESULTSSTRATEGIC PROJECTSNSDS 2001-2005 ACHIEVEMENTSOTHER ACHIEVEMENTSKEY CHALLENGES 2005-2006

W&RSETA PROFILE

GOVERNANCE STRUCTURE

MANAGEMENT STRUCTURE

EMPLOYEE DEMOGRAPHICS

EMPLOYER ORGANIZATIONS

6 BOARD MEMBERS FROM:RAFTASOINSASAISAHOST

EMPLOYEE ORGANIZATIONS

6 BOARD MEMBERS FROM:SACCAWUSACTWUDICHAWUHOTELLICCAFEDCRAWECCAWUSA

GOVERNANCE STRUCTURE

Main Board

Executive Committee

Finance Audit Remuneration Projects Core Functions JIP ETQA

Labour

COO

Smme L/Ships Skills IiP

CFO

FinanceProjects IT SCMHRComms

CEO

PA

ETQA

PA

PA

BoardSecretariat

W&RSETA MGMT STRUCTURE

HEAD OFFICE

Regions

W&RSETA STAFF Demographics

0

5

10

15

20

25

30

35

40

45

African White Indian Coloured Female Male

W&RSETA STAFF COMPLEMENT

RACE FEMALES MALES

African =43 32 11

Whites = 7 6 1

Coloureds = 6 4 2

Indian = 3 1 2

TOTAL=59 43 16

W&R SECTOR PROFILE

STATISTICS

COMPANIES REGISTERED COMPANIES PARTICIPATING

CRITICAL /SCARCE SKILLS IN SECTOR

W&R SECTOR PROFILE

SEPTEMBER 2004# EMPLOYED -2.5mRETAIL TRADE SALES -R352bnWHOLESALE TRADE -R485bnTOTAL SALES -R837bnGDP -R172bn

Source: Stats in brief 2005-Statistic SA

REGISTERED VS PARTICIPATING ORGANISATIONS

5 year TRENDREGISTERED ORGS – 17k to 46k

LEVYPAYING ORGS - 13K to 24K

WORKPLACE SKILLS PLANS - 564 to 9,5k

IMPLEMENTATION REPORTS - 287 to 6k

Registered vs Participating in Sector

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Year 2000/2001 Year 2001/2002 Year 2002/2003 Year 2003/2004 Year 2004/2005

Registered

Levypaying

WSP's

WSPIG's

% Increase of registered organisations in the sector

Year 2000/2001

17 396 Org.

Year 2001/200227.98%

22 263 Org.

Year 2002/200326.23%

28 103 Org.

Year 2003/200423.94%

34 830 Org.

Year 2004/200532.89%

46 285 Org.

Registered Organisations Per Region

41%

6%17%

7%

0%4%

2%4%

19%

Gauteng

Mpumalanga

Western Cape

Eastern Cape

Northern Cape

Free State

Limpopo

North West

Kwa Zulu NatalNo. of registered companiesGauteng 16105Mpumalanga 1318Western Cape 6781Eastern Cape 1512Northern Cape 356Free State 799Limpopo 466North West 836KZN 7681

Year 5

Participating Organisations Per Region

41%

3%19%

7%

2%4%

1%4%

19%

Gauteng

Mpumalanga

Western Cape

Eastern Cape

Northern Cape

Free State

Limpopo

North West

KwaZulu Natal

Gauteng 738 1432 2856 3927Mpumalanga 41 177 303 298Western Cape 344 818 1183 1849Eastern Cape 70 151 395 628Northern Cape 11 32 120 188Free State 36 106 283 398Limpopo 23 95 156 90North West 14 105 368 365KZN 337 729 1572 1802Total 1614 3646 7238 9545

Levy vs Grants paid Small (1-49) Category

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

Grants Paid

Category 2000/2001 2001/2002 2002/2003 2003/2004

2004/2005

Levies Received

32 142 652 97 644 781 126 088 529 145154 237

167 222 871

Grants Paid 12 454 081 41 586 174 53 910 577 65 935 220

60 539 221

Levy vs Grants paid Medium (50-149) Category

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

Grants Paid

Category 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

2 987 414 9 529 381 13 644 928 12 962 489 15 675 515

Grants Paid 610 664 2 824 868 4 082 515 5 425 280 4 981 718

Levy vs Grants paid Large (150+) Category

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

Grants Paid

Category 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

14 200 193 41 973 306 46 311 798 65 761 009 64 104 250

Grants Paid 12 391 725 36 899 016 40 644 316 48 225 329 36 463 757

Levy Income vs Grants paid Total Per Category

0

100000

200000

300000

400000

500000

600000

Small Medium Large

Levy Rec.

Grants Paid

Category Small Medium Large

Levies Received 568 m 52m 221m

Grants Paid 234m 18m 175m

% Grants Paid 41% 34% 79%

W&R SECTOR PROFILE

CRITICAL & SCARCE SKILLSSUPPLY CHAIN MANAGERSMANAGERSRETAIL IT EXPERTSRETAIL TECHNICAL SKILLSFINANCESource: SSP

Scarce skillsStore Managers

ManagementStore ManagementFinancial MarketerMarketing ManagementCall Center OperatorLife Skills-HIV/Culturally•Diversity/Leadership

Supply Chain Managers

Supply Chain ManagementBuyer and PlannerImporter & Exporter(Merchandise Planner)Warehouse Management Distributor-DC Warehouse DistributorLogisticsInventory

Retail Information Technology Experts

Retail ITManagementProject ManagementBusiness AnalystProgrammers Analysts Inventory Control Software DevelopersW&R Com. Literacy

Retail Technical Skills

Technical SkillsButchery/BlockmanBakery/ConfectionerWindow DresserRetail Beauty SalesFood Preparation/SalesStore Designer•CAD DesignerVisual MerchandisersRepairs-Jewellery,watch,•furniture,small appliances

Finance FinanceAccountingInternal AuditCredit Controller Credit Clerks

ANNUAL FINANCIAL STATEMENTS

REPORT OF THE AUDITOR GENERAL

AFS 200/2005CASH & CASH EQUIVALENTS5 YEAR OVERVIEWSTRATEGIC PROJECTS

REPORT OF AUDITOR GENERAL

AUDIT OPINION:UNQUALIFIED

EMPHASIS OF MATTER:RESUBMISSION OF FINANCIAL

STATEMENTS

2004/05 Information

2004/05

Annual Financial Statements R’000

SDL Levy Income – 80% R285 757

Investment income R21 499

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

R356 372

Total expenses (grant provision and project expenses etc.)

R349 456

Admin expense (9%) 31 817

Net Deficit (R24 901)

Cash and cash equivalents R365 000

Cash and cash equivalents

2004/05

Annual Financial Statements R’000

Cash and cash equivalents R365 000

ADD: Assets, including levy receivables and fixed assets

R52 218

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

(R151 740)

Funds available for strategic projects R265 478

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

(R241 784)

Unallocated funds R23 694

Finances-General Overview

Actual 2001-2005

R’000

Levy Income 971m

Invest Income 75m

Employer grants (46% of levy inc.)Projects Expenses

446m231m

Administration costs 110m

Available for Strategic Projects

265m

W&RSETA – 5 year overviewInformation based on audited financial statements

2001 2002 2003 2004 2005

PER YEAR R’000 R’000 R’000 R’000 R’000

Levy income

71 366 163 247 208 783 241 970 285 757

Invest Income

6 579 20 630 26 453 21 499

MandatoryGrants

25 249 79 834 83 078 109 861 147 763

Project expenses

- 15 867 24 848 32 813 157 029

Administration expenses

16 406 15 209 21 718 25 071 31 817

Surplus/(deficit)

26 359 59 601 101 275 103 144 (24 901)

Surplus funds - Overview

2001 2002 2003 2004 2005

CUMULATIVE R’000 R’000 R’000 R’000 R’000

Surplus funds available (A)

26 359 101 827 227 950 363 907 496 035

Surplus funds allocated (B)

0 91 266 93 415 223 070 472 357

(B) as % of (A)

0 90% 41% 61% 95%

Surplus funds spent (C)

0 15 867 40 715 73 528 230 557

(C) as % of (B)

0 17% 44% 33% 49%

Surplus funds - Overview

2001 2002 2003 2004 2005

CUMMULATIVE

R’000 R’000 R’000 R’000 R’000

Surplus funds available (A)

26 359 101 827 227 950 363 907 496 035

Surplus funds allocated (B)

0 91 266 93 415 223 070 472 357

(B) as % of (A)

0 90% 41% 61% 95%

Surplus funds disbursed (C)

0 15 867 40 715 73 528 230 557

(C) as % of (B)

0 17% 44% 33% 49%

SETA SPONSOREDSETA SPONSORED STRATEGIC PROJECTS STRATEGIC PROJECTS

• Learnerships R217m• Capacity Building for Unions R 10m• Qualifications (Dev.) R

7.5m• I.S.D.F’S R 24m• SMME’S R 24m• ABET R 30m• Assessor Training R 7m• People Living with Disabilities R

30m

NSDS 2001-2005 ACHIEVEMENTS

SCORECARD

ACHIEVEMENTS BY OBJECTIVE

OTHER ACHIEVEMENTS

DoL SCORECARDPERFORMANCE ASSESSMENT

SUMMARY

Score Comment

NSDS Targets 5Excellent performance levels achieved by the W&RSETA

Governance and Management 5

Excellent performance levels achieved by the W&RSETA

Financial Management 2.5Excellent performance levels achieved by the W&RSETA

Sector representation and Stakeholder Support N/A

Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvements submitted.

Overall Score for SETA 4.17

NSDS TargetsNSDS Objective

Objective 1: To develop a culture

of high quality lifelong learning

Seta Target March 05

•A Target for 8000 ABET Learners was set •120900 workers on structured learning programmes • 20 Enterprises to be committed to or have achieved the National agreed standards (IiP)

Seta Progress•8000 learners embarked on a learning programme towards an NQF Level one qualification.

•337687 workers have embarked on structured Learning programmes•35 Levy paying organisations have committed to IiP

Target

Exceeded

Number of People Trained by Companies

Total number of people trained = 337687

52%

18%

8%

22%

African

Coloured

Indian

White

PROFILE OF SKILLS PROGRAMMES PROFILE OF SKILLS PROGRAMMES OFFERED BY ORGSOFFERED BY ORGS

• TEAMWORK 153,516• CUSTOMER RELATIONSHIP 58,679• PRODUCT KNOWLEDGE

26,416• AIDS

13,800• SALES 12,136

NSDS Targets cont.

NSDS ObjectiveObjective 2:

To foster skills development in the formal economy for

productivity and employment growth Seta Target March 05

•159 Enterprise Large and Super

•448 Enterprises Medium

•7 Learnerships to be developed

Seta Progress

•210 enterprises are receiving grants

•487 enterprises are receiving grants

•10 learnerships developed

Target

Exceeded

NSDS Targets cont.NSDS Objective

Objective 3:

To stimulate and support skills

development in small businesses

Seta Target March 05

•5500 SMMEs receiving Seta support

Seta Progress

•7350 SMMEs received support

•2566 SMMEs received training.

•145 SMME retail training companies received facilitation skills training

Total of 10061 SMME received support

Target

Exceeded

NSDS Targets cont.

NSDS ObjectiveObjective 4:

To promote skills development for

employability and sustainable livelihoods

through social development initiatives

Seta Target March 05

Project RAVE

10 000 Learners to be trained in nine provinces

Seta Progress

10200 learners have completed the training and mentorship

Target

Exceeded

NSDS Targets cont.

NSDS Objective

Objective 5:

To assist new entrants into employment

Seta Target March 05

•2000 SETA Target

•3000 GDS Target

Seta Progress

•18.1 Employed Learners – 1427

•18.2 Unemployed Learners- 5293

Target

Exceeded

LEARNERSHIPS STATUS

41%

59%

0%

Total Completed

Total in Progress

Terminations

 SETA Target

Total Achieved

Total Completed

Total In Progress Terminations

18.1 2000 1427 671 756

18.2 4000 5057 1461 3260 336

Total 6000 6484 2132 4016 336

Learnership Achievements

0

200

400

600

800

1000

1200

18.1 18.2

18.1 and 18.2 Achieved per QualificationNational Certificate:W&R Processes (NQF 2)

National Certificate: W&R Sales and ServiceTechnology (NQF 4)

National Certificate: Certificate in RetailOperations Management(NQF 5)

National Certificate: W&R Processes (NQF 2)

National Certificate: W&R Sales and Service Technology (NQF 4)

National Certificate: Certificate in Retail Operations Management (NQF 5)

18.1 626 207 38

18.2 1032 284 6

Total 1658 491 44

Learnership Participation

Province

In Progress Completed TOTAL

18.1 18.2 TOTAL 18.1 18.2 TOTAL 18.1 18.2 TOTAL

Eastern Cape 79 272 351 50 153 203 129 425 554

Freestate 15 54 69 8 34 42 23 88 111

Gauteng 495 1185 1680 280 584 864 775 1769 2544

KwaZulu Natal 128 647 775 142 213 355 270 860 1130

Limpopo 23 108 131 24 123 147 47 231 278

Mpumalanga 117 226 343 25 72 97 142 298 440

North West 4 99 103 17 4 21 21 103 124

Northern Cape 1 120 121 17 48 65 18 168 186

Undefined 4 25 29 26 20 46 30 45 75

Western Cape 83 524 607 82 210 292 165 734 899

TOTAL 949 3260 4209 671 1461 2132 1620 4721 6341

W&RSETA QUALIFICATIONS

20 QUALIFICATIONS DEVELOPED

11 REGISTERED WITH SAQA & DoL - NQF Level

National certificate: Retail shop floor practices 2National certificate: Retail and wholesale sales and services technology 4National certificate: Wholesale and retail credit control 4National certificate: Wholesale and retail operations supervision 4National certificate: Wholesale and retail sales practices 3National certificate: Wholesale and retail operations management 5National certificate: Retail and wholesale processes 2National certificate: Wholesale and retail distribution 2

Wholesale and Retail Generalist 2Wholesale and Retail Specialist 4Wholesale and Retail Management 5

OTHER ACHIEVEMENTS

5 Unqualified Audit reports Re-Accreditation as an ETQA by SAQA -3years Re-Established as a SETA for next 5 years 57 Providers Accredited

30 In house – organisations 15 External 12 BEE

68 FET Colleges participating in W&RSETA qualifications

1421 Assessors Registered 125 Moderators Registered 2193 Certificates for Full Qualifications issued 2500 Record of Achievements in SMMEs 295 Learning Programmes approved

National Training Provider Representation (Public, Private & Constituency)

14%

16%

18%12%

9%

7%

3%

9%

12% 0%0%

Eastern Cape

Gauteng

KwaZulu-Natal

Limpopo

Mpumalanga

North West

Northern Cape

Free State

Western Cape

National

TotalProvince Public Private Constituent Total

Eastern Cape 8 1 0 9

Gauteng 9 3 1 13

KwaZulu-Natal 11 2 1 14

Limpopo 7 0 0 7

Mpumalanga 5 0 0 5

North West 4 0 0 4

Northern Cape 2 0 0 2

Free State 5 0 0 5

Western Cape 7 3 1 11

National 0 6 27 33

Total 58 15 30 103

National Assessor and Moderator Representation

Province Assessor Moderator

Eastern Cape 151 10

Gauteng 536 64

KwaZulu-Natal 203 21

Limpopo 25 0

Mpumalanga 11 1

North West 12 1

Northern Cape 10 21

Free State 12 0

Western Cape 198 21

Outside SA 1 0

Freelance 265 6

Total 1422 124

BEST PRACTICE

SAQA Auditors congratulates :

Qualifications Framework

Balance Score Card

IT Policies and Procedures

CHALLENGES

Increase training and participation of SMME’S Form strategic private, public & community partnerships

Capacitate and Accredit SMME Providers

Develop exit strategies - Learnerships

Develop new demand-led qualifications

Address Scarce SkillsNational Presence –Provincial Roll-out StrategyImplement our Vision PlanAssess & Evaluate impact

Thank youThank you

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