DEPARTMENT%20OF%20LABOUR

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DEPARTMENT OF LABOUR

• PRESENTATION TO THE SELECT COMMITTEE
• OCTOBER 2007

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Structure of Presentation

• Key issues per Main Division
• 1.1 Service Delivery
• 1.2 Employment and Skills Development
  Services/Human Resource Development ( ESDS / HRD)
• 1.3 Labour Policy and Labour Market
  Programmes (LP LMP)
• 1.4 Administration
• 2. 2006/07 Expenditure Information
• 3. Auditor-General Report

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1. KEY ISSUES PER MAIN DIVISION
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• 1.1 Service Delivery
• 88 UIF claims processed and paid within six
  weeks of receiving complete documentation.
• 35 of Compensation Fund claims processed and
  paid within 90 days of receiving complete
  documentation.
• Phase 1 of Employment Services System (ESSA)
  completed and is being implemented in 2007/08.

5
2 637 Projects identified for support and 2 314
(88) supported with respect to Skills
Development initiatives that support Provincial
growth and development strategies.
PO No. PIP No. Supported Supported
MP 500 460 92
LP 33 14 42
GN 152 141 93
GS 0 0 92
FS 305 253 82
KZN 621 503 81
NC 142 79 56
WC 57 57 100
NW 140 120 90
EC 687 687 100
TOTAL 2637 2314 88
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1.1 Service Delivery

• 118 153 unemployed trained and 90 691 (77)
  placed with 36 receiving accredited training.

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PO No. Trained No. Placed Placed Accredited
MP 11336 10525 93 0
LP 18001 17446 97 13
GN 5044 2932 77 28
GS 9965 6649 63 26
FS 6611 5302 77 26
KZN 19313 4522 14 50
NC 6801 5477 78 0
WC 5450 3938 78 0
NW 15020 14518 99 0
EC 20610 19384 98 34
Total 118153 90691 77 36
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2 294 retrenchees were registered, 696
counselled and 642 referred for training.
PO No Retrenchments No counselling No training
MP 0 0 0
LP 0 0 0
GN 0 0 0
GS 37 37 37
FS 265 265 216
KZN 1347 0 0
NC 0 0 0
WC 0 0 0
NW 389 389 389
EC 256 5 0
Total 2294 696 642
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3 826 youth were trained and 1 462 were placed in
sustainable employment.
PO Total Trained Total placed
MP 0 0
LP 0 0
GN 0 0
GS 934 709
FS 499 446
KZN 161 90
NC 12 12
WC 1371 0
NW 205 205
EC 644 0
Total 3826 1462
10
Out of 180 767 workplaces inspected, 136 845
(76) complied.
PO Inspected Compiled
MP 15526 11323 72
LP 10548 8188 77
GN 13955 8294 59
GS 56721 41409 73
FS 15388 12482 81
KZN 28027 23420 83
NC 7797 6697 85
WC 1282 679 52
NW 10204 6149 60
EC 21319 18204 85
Total 180767 136845 76
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97 labour related complaints settled within 90
days.
PO Received Settled
MP 2600 23404 90
LP 32244 30335 94
GN 36224 31333 86
GS 10289 7466 73
FS 5522 4664 84
KZN 24933 19361 78
NC 2338 1131 48
WC 3494 2225 63
NW 3340 3096 93
EC 12192 6062 50
Total 129836 125981 97
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1.1 Service Delivery

• 5 692 workplaces in high risk industries
  inspected on OHS. 23 decrease of reported
  incidences.

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PO Numbers
Mpumalanga 269
Limpopo 359
Gauteng North 639
Gauteng South 0
Free State 3788
KwaZulu Natal 0
Northern Cape 528
Western Cape 59
North West 50
Eastern Cape 0
Total 5692
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1.1 Service Delivery

• The draft OHS Policy and Bill have been finalised
  in consultation with OHS Advisory Council
  comprising of social partners.

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• 1.2 ESDS/ HRD
• Total funds available R2.2 billion
• Expenditure R714 381 million
• Commitments R1 067 874
• Spent against total budget 81

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• R37.8 million paid to 7 providers to train 20
  000 unemployed ABET learners.

Name of Provider Approved Budget Learners Disbursed EC LP KZN FS MP NW NC GTG WC TOTAL
Gert Sibande Nkangala FET Colleges R 10,457,276 R 2.000 R 3,280,000 2,000 2,000
Project Literacy R 32,928,000 5,600 R 12,654,000 2,000 1,200 1,200 1,200 5,600
Unisa Abet Institute R 36,621,078 7,800 R 12,660,000 1,500 3,300 1,200 1,800 7,800
Siyaphambili Audit Education Services CC R 9,266,400 1,800 R 2,786,000 1,800 1,800
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• R37.8 million paid to 7 providers to train 20 000
  unemployed ABET learners.

Name of Provider Approved Budget Learners Disbursed EC LP KZN FS MP NW NC GTG WC TOTAL
Botshabelo Guidance Centre R 4,704,000 800 R 1,731,00 800 800
Better Best Educational Projects R 6,186,700 1,300 R 3,143,000 1,300 1,300
R 103,723,275 20,100 R 37,811,000 3,300 3,300 3,300 2,000 2,000 1,800 1,200 1,200 1,200 20,100
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• 1.2 ESDS/ HRD
• R10 million budgeted for the printing of guide
  and training of career guidance counsellors.
  Training targeted to commence during 2007.

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R316 million in grants approved to benefit 10
900 learners on learnerships, apprenticeships and
internships.
Name of SETA Total budget No Learners EC LP KZN FS MP NW NC GTG WC TOTAL
BANKSETA R 24,310,549 824 50 55 70 51 50 50 53 395 50 824
CHIETA R 44,754,329 1,236 246 - 250 500 240 - - - - 1,236
CETA EPWP R 53,792,690 1,000 180 70 50 50 50 50 50 310 190 1,000
ESETA R 17,000,000 550 100 50 100 80 - 80 60 80 - 550
FIETA R 22,615,960 360 40 20 150 - 50 - - 50 50 360
FASSET R 30,675,384 376 80 15 - 81 90 30 80 - - 376
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Name of SETA Total budget No Learners EC LP KZN FS MP NW NC GTG WC TOTAL
FOODBEV R 23,126,800 800 50 50 70 50 50 - - 120 149 539
INSETA R 13,475,000 539 200 50 150 50 50 - - 100 200 800
MQA R 15,288,153 133 - 30 - 30 33 40 - - - 133
MAPPPP R 20,783,274 981 75 90 140 150 90 116 100 120 100 981
SASSETA R 14,156,000 2,350 230 210 320 220 220 230 200 450 270 2,350
SERVICES R 19,050,000 1,000 300 - 300 100 100 - - 100 100 1,1000
THETA R 17,784,000 780 70 60 130 50 170 50 30 150 70 780
TOTAL SETAs R 316,812,139 10,929 1,621 700 1,730 1,412 1,193 646 573 1,875 1,179 10,929
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1 148 undergraduate and 1 042 post graduate
students received bursaries totalling R 78.5
millionUNDERGRADUATE BURSARIES
Provinces GP FS NW NC WC EC MP LP KZN
INSTITUTIONS
Cape Peninsula Uni. Of Technology - Belville 29
Cape Peninsula Uni. Of Technology - CT 17
Cape Town University 10
Central University of Technology 14
Durban University of Technology 39
Fort Hare University 5
Free State University 68
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Provinces GP FS NW NC WC EC MP LP KZN
JHB University 36
KZN University 72
Limpopo University ( Medunsa) 2
Mangosuthu Technikon 23
Nelson Mandela Metropolitan University 21
NW University 23
Pretoria University 50
Rhodes University 11
UNISA 211
Stellenbosch University 8
Tshwane University of Technology 91
University of Limpopo 87
Vaal University of Technology 11
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Provinces GP FS NW NC WC EC MP LP KZN
Venda University 179
Walter Sisulu University - Berlin 6
Walter Sisulu University - Butterworth 18
Walter Sisulu University - Mthatha 40
WC University 27
Wits University 27
Zululand University 23
Total 440 68 23 0 83 109 0 268 157
GRAND TOTAL 1148
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POST GRADUATE
Level of Study Male Female Disabled Total
Honours 203 193 34 430
Masters 154 162 48 364
Doctoral 94 122 25 241
Post-doctoral 5 2 0 7
TOTAL 456 479 107 1042
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• 1.2 ESDS/HRD
• All 23 SETAs signed SLAs by 31 July 2006. 20
  SETAs have performed satisfactory against set
  targets.
• 98 588 employed and unemployed learners trained
  in programmes linked to scarce skillsof which 33
  674 completed.
• 3 287 youth trained in new venture creation
  learnership.

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Strategic projects to the value of R886 million
initiated to support 9 provinces over the next 3
years.
PROVINCE BUDGET LEARNERS
Eastern Cape R 99,997,200 2,696
Free State R 96,390,000 1,865
Gauteng R 99,999,110 8,693
KwaZulu Natal R 97,548,000 17,520
Limpopo R 95,622,000 2,109
Mpumalanga R 99,312,000 1,664
Northern Cape R 99,972,000 1,694
North West R 98,010,000 2,335
Western Cape R 99,900,000 2,560
TOTAL R 886,750,310 R 41,136
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WC GPG KZN LIMP MP NW NC FC EC Total
PROGRAMME TYPE
Learnerships 1500 1000 580 1909 800 1500 500 1440 2326 11555
Internships 100 254 175 325 854
Apprenticeships 400 2250 240 0 200 235 330 250 45 3950
Bursaries 450 0 200 264 100 1014
Skills Programme 210 5443 16700 400 500 510 23763
TOTALS 2,560 8,693 17,520 2,109 1,664 2,335 1,694 1,865 2,696 41,136
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1.2 ESDS/HRD

• Indlela arranged 9 387 assessments ,96
  withdrawn,1 482 absent,7 905 tested, 3 192 passed
  (40). Assessments were conducted between two and
  six months.

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• 1.3 LPLMP
• Research sample to inform welfare sectoral
  determination expanded and timeframes for the
  project extended into 2007/08 financial year.
• Sectoral Determinations published for
  Hospitality, Contract Cleaning and Civil
  Engineering.
• Private Security minimum wages published.
• An awareness raising strategy on elimination of
  child labour was conducted in all provinces.

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• 1.3 LP LMP
• Child labour activities are included in the
  provincial structure (IES).
• All staff trained on the CLPA.
• Pilot programmes implemented to address worst
  forms of child labour including commercial sexual
  exploitation, child trafficking and children used
  by adults to commit crime.

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• 1.3 LP LMP
• Newly published Labour Market Information
  captured and analysed.
• Reports produced Industrial Action,
  Employment/Unemployment trends, Labour Market
  Review, State of Skills, Client Satisfaction
  Survey.

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• 1.3 LP LMP
• Research, Monitoring and Evaluation agenda
  implemented and partnership entered into with
  HSRC.
• Participation in ILO Conference and Governing
  Body ensured. Minister appointed as Chairperson
  of ILO Governing Body for a year.

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• 1.3 LP LMP
• All payments to NEDLAC effected.
• 2 GDS progress reports compiled. A consolidated
  report was presented to the PC Labour on
  29/08/2006. Another report was prepared for the
  next Presidential Working Group meeting.

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• 1.3 LP LMP
• SEF turnaround strategy approved by the Minister
  and implemented.

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• 1.4 Administration
• Communication
• The Communication Strategy for 2006/07 was
  developed and implemented. Strategic partnerships
  were entered into to enhance the DoLs
  communication.
• Training programmes for Provincial Communicators
  were undertaken with the Institute for
  Advancement of Journalism. All Provincial
  Communicators completed courses in Basic
  Reporting and Feature writing.

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• HRM
• The Departments HRM facilitates the development
  of staff, ensures effective and efficient
  utilisation of the human capital and renders
  legal services to DoL.
• The Integrated Policy on Gender, Disability and
  Youth as well as the Information Technology
  Policies were developed.
• A total of 3 352 officials were trained as per
  identified training needs.

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• HRM
• Employment Equity has been implemented as one of
  the Departments key strategic areas.

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• Information Technology
• Siyaya, the claims management system used by the
  UIF was enhanced, based on additional and revised
  business requirements.
• An on-line EE system was introduced in 2006 in
  line with the EE Regulations and the business
  strategy.
• More than 700 additional personal computers were
  commissioned to the ICT environment.
• Service delivery at remote sites was enabled by
  providing IT services to 20 mobile labour
  centres.

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• Financial Management
• A management tool to prepare performance targets
  and calculate activity based budgets has been
  developed.
• A revised monthly and quarterly reporting system
  for performance and budget management has been
  developed in line with Treasury requirements.
  This system will assist the DoL to account for
  both performance and expenditure in an integrated
  way based on National Treasury requirements.

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2. 2006/07 EXPENDITURE INFORMATION
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2. 2006/2007 Expenditure Information
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2. 2006/2007 Expenditure Information
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2. 2006/2007 Expenditure Information
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2. 2006/2007 Expenditure Information
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2. 2006/2007 Expenditure Information
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AUDITOR GENERAL REPORT 2006/07

• Department of Labour
• Sheltered Employment Factories
• National Skills Fund.

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1. DEPARTMENT OF LABOUR

• Qualification Asset management
• Corrective Measures
• An Interim asset management unit to be
  implemented.
• Department to ensure that the asset register is
  accurate and complete and supports the fixed
  assets indicated in the Financial Statements.
• Asset register to be reconciled with the balance
  reflected on LOGIS.

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Emphasis of matter-DOL

• Administration of Leave records
• Corrective Measures
• Leave registers have been introduced to ensure
  that all managers exercise control over the
  management of leave
• Management of leave has been included as one of
  the key performance areas as reflected in each
  managers core management criteria and the
  general assessment factors which are part of the
  individual performance management system. This is
  to ensure that all managers are assessed on their
  management of leave
• Further to this a process has been put in motion
  to develop guidelines based on the Leave Policy

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MATTERS HIGHLIGHTED

• As disclosed in note 13 to the financial
  statements for receivables, there are staff
  debtors amounting to R10,2 million that is older
  than three years.  The Department is in the
  process of addressing the matter and will
  continue with its recovery actions to the extent
  that the cost of doing so will not exceed the
  benefits thereof.
• Corrective Measures
• As stated in the audit report, the department is
  in the process with its recovery actions to the
  extent that the cost of doing so will not exceed
  the benefits thereof. The department is also
  writing off the debts in accordance with its
  Debt Management Policy.

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OTHER MATTERS

• Monitoring of controls Employee Cost
• Lack of monitoring over the Salary Persal EBT
  control account
• Corrective measures
• The Department takes note of the recommendation
  and action will be taken to improve the clearing
  of this account for the 2007/08 financial year.
  However, this account does not need a zero
  balance for moth and year-end as indicated by BAS
  notice number 2 of 2007. The indicator report
  only indicated that it is preferable to have a
  zero balance at year end.

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VALUE FOR MONEY MATTERS

• The following non-compliance with the National
  Environmental Management Act, 1998 (Act No. 107
  of 1998) was noted
• Section 11(2) requires the department to prepare
  an environmental management plan within one year
  of the promulgation of this act and at least
  every four years thereafter. The environmental
  management plan was not approved.
• Section 16(1) requires the department to report
  annually within four months of the end of its
  financial year on the implementation of its
  adopted environmental management plan or
  environmental implementation plan. The last
  report was compiled in July 2002.
• Corrective measures
• An environmental plan is currently in a draft
  phase, upon approval the plan will be submitted
  to the office of the Auditor General and be
  implemented.

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INTERNAL AUDIT

• The AG could not place reliance as planned on
  the work of internal audit as the planning
  process and conclusions on audit work performed
  by internal audit was not sufficiently documented
  as required by the International Internal
  Auditing standards.
• Corrective measures
• A project team has been established to review
  progress made with the establishment of the Risk
  Management Unit, annual risk assessments be
  performed, follow up responses on audit reports
  issued, the review of the Internal Audit
  structure and use of IT software.

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2. Sheltered Employment Factories

• Qualification Supply Chain Management Process
  not followed
• Corrective measures
• It is impractical to tender for the supply of the
  two main raw materials used i.e. SABS approved
  textiles and wood - since there are limited
  suppliers (3 for textiles and 4 for Saligna wood.
  Competitive quotes are always obtained for all
  purchases and the most favourable quote is
  selected based on price, quality and delivery to
  meet tight customer deadlines. Immediate actions
  include
• Advertise in major newspapers for alternative
  suppliers. There is a funding constraint in
  achieving this .

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• Impairment of fixed assets exercise not
  completed at year end
• Corrective measures
• 60 completed by year end 06/07. The remaining 5
  factories will be completed. Policy is in place
  to reconcile fixed assets on a quarterly basis.

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• Stock in transit- non disclosure at year end
• Corrective measures
• SEF Management has in place monitoring controls
  regarding business activities of the SEF. All
  information relating to goods Dispatched not
  invoiced has been submitted to the auditors.
• A full record of goods in transit is maintained
  and continuously reconciled with delivery notes.

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OTHER MATTERS

• Risk assessment
• Corrective measures
• Appropriate senior staff to be engaged to perform
  this function.
• Material corrections made to the financial
  statements submitted for audit.
• CORRECTIVE MEASURES
• Annual Financial Statements were amended to take
  into account obsolete stock to be written off,
  depreciation of assets and disclosures of
  financial leases

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• NON COMPLIANCE WITH APPLICABLE LEGISLATION
• Supply procedures
• Corrective measures
• Advertise in major newspapers for alternative
  suppliers Sept 07.
• Preparation of strategic plan
• Corrective measures
• Formal policy to be established.

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• NON COMPLIANCE WITH APPLICABLE LEGISLATION
• Internal control procedures for payment
  progressing
• Corrective measures
• Preparation for payment and authorisation is
  performed by separate functions and individuals.
• Payments within 30 days of Invoice
• Corrective measures
• Impractical to make payments within 30 days of
  Invoice. Practice is to pay within 30 days of
  Statement. Approval to be sought from National
  Treasury

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• NON COMPLIANCE WITH APPLICABLE LEGISLATION
• Medical schemes Act Section 20 Business of a
  medical scheme
• Corrective measures
• Council for Medical Schemes has agreed that the
  SEF merely needed to apply for exemption in terms
  of the Section 8(h) of the Medical Schemes Act,
  131 of 1998, until such time as an affordable
  alternative could be introduced in the SEF and as
  approved by the Department of Labour and the
  National Treasury.

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• NON COMPLIANCE WITH APPLICABLE LEGISLATION
• Public Finance Management Act insurance
  contracts relating to all the assets
• Corrective measures
• There are measures in place to safeguard assets
  that include proper warehousing, security of
  premises and assets, and proactive management to
  monitor and control .

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• MATTERS OF GOVERNANCE
• Strategic plan not achieved
• Corrective measures
• There is an action plan and control matrix for
  putting effect to the turn around strategy.
  Internal audit Non reliance on work of Internal
  Audit
• Corrective measures
• Internal Auditors have been seconded to assist
  SEF management.

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3. NATIONAL SKILLS FUND

• Qualification
• Project Expenditure
• Corrective measures
• The NSF has conducted a detailed analysis of the
  current procurement processes against the Audit
  Qualification. The NSF is in the process of
  drafting proposals to align the existing
  procurement processes with the supply chain
  processes and policies of the Department.

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• Qualification
• Completeness of commitment
• Corrective measures
• An accrual based accounting system will be
  implemented which will ensure that the
  commitments are correctly reflected on the
  financial statements.
• A request has been made for acquisition of an
  accrual accounting software package and the
  appointment of external resources to assist with
  the setting up of an accrual accounting system.

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EMPHASIS OF MATTER

• BASIS OF ACCOUNTING (DEPARTURES AND DEVIATIONS)
• Corrective measures
• The Department has taken note of the Auditor
  Generals comments.

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OTHER MATTERS

• Material corrections made to the financial
  statements submitted for Audit
• Corrective measures
• The Department has taken note of the Auditor
  Generals comments.

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MATTERS OF GOVERNANCE

• OPERATIONAL MANUALS FOR FUNDING WINDOWS
• Corrective measures
• All operational manuals with the exception of the
  Social Development Funding Window have been
  approved and submitted to the Auditor-General.

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MATTERS OF GOVERNANCE

• INTERNAL AUDIT
• Corrective measures
• A project team has been established to review
  progress made with the establishment of the Risk
  Management Unit, annual risk assessments be
  performed, follow up responses on audit reports
  issued, the review of the Internal Audit
  structure and use of IT software .

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THANK YOU