Presentation to the Portfolio Committee on Labour ANNUAL REPORT (APRIL 2004

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Presentation to the Portfolio Committee on
Labour ANNUAL REPORT(APRIL 2004 31 MARCH
2005)

• 17 October 2005

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FRAMEWORK OF PRESENTATION

1. Introduction Overview.
2. Sector Profile
3. Seta Profile
4. Annual Financials Audit Results
5. Committed funds and Projects.
6. Challenges
7. Specific Issues

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INTRODUCTION OVERVIEW

• OUR MANDATE
• To manage and coordinate training and skills
  development within the local government sectors.
• The LGSETA should bring skills to the employed
  and those wanting to be employed by the sector.
• 2004/5 A year of consolidation
• Make stronger.
• More solid.
• Combine into a single unit.

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WHY?

• We did not concentrate on the failures, we were
  keen to learn from the mistakes of the past and
  use the experience gained to accelerate
  implementation.
• The Annual Report will bear testimony.

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LGSETA - Sector Profile
Province Category A Metro Category B Local Category C District Water, waste sanitation
Eastern Cape 1 38 6 16
Free State - 20 5 7
Gauteng 3 9 3 63
KwaZuluNatal 1 50 10 19
Limpopo - 26 6 6
Mpumalanga - 17 3 7
North West - 21 4 9
Northern Cape - 26 5 10
Western Cape 1 24 5 23
Total 6 231 47 160
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(No Transcript)
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PURSUING OUR MANDATE Achievements NSDS 2001
2005

• Indicator 1.1 No of Workers at NQF 1
• - 94 850 workers at NQF 1
• Indicator 1.2 No of workers on structure
  learning programmes
• 80 340 learners
• Indicator 1.3 No of enterprises that achieved
  national standard of people development
• - Nil
• To date no enterprise in the sector are
  participating in IIP due to lack of readiness and
  financial constraints.

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Achievements NSDS 2001 2005 Cont.

• Indicator 2.1 No of large enterprises that
  received skills development grants
• 215 (80 ) enterprises. WSPs are submitted
  annually therefore this is not a cumulative
  total.
• Indicator 2.2 No of medium enterprises that
  received skills development grants
• 25 (36,8) enterprises. WSPs are submitted
  annually therefore this is not a cumulative
  total.
• Indicator 2.3 No of learnerships available to
  workers in sector
• 25 learnerships registered of which 11 are
  currently active

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Achievements NSDS 2001 2005 Cont

• Indicator 3.1 No of small enterprises that
  received skills development support
• 5 WSPs are submitted annually therefore this is
  not a accumulative total.
• Indicator 5.1 No of unemployed young people
  that entered learnerships or apprenticeships
• 1755. NSF approved funding in November
  2004.LGSETA could only provide funding for 400
  learners which amounts to R4m
• No of learners on learners or apprenticeships
  that were placed in employment
• 1260, it is envisaged that the remaining target
  of 95 would be achieved in the next financial
  year.

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Annual Financials Audit Results(i) Income
Expenditure

• SDL Income R145, 103m
• Including R0, 884m (2004 Nil) levies paid by
  government departments (DWAF) (2004 R134, 221m)
• National Skills Fund and Donor Funding
• Conditional funds of R24, 717m from the NSF.
• Interest accrued R0, 363m.
• During the year, R7,819m recognised as revenue.
• Other Income R1,559m
• Donations received R0,271m
• Penalties and interest paid by employers in the
  sector - R1,288m (2004 R0,910m)
• Total Investment Income - R15, 038m (2004 R18,
  962m)
• Total revenue R169,519

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(i) Income Expenditure Cont.

• Total expenses R125,684m
• Eligible NSF project expenses - R7,819m
• Mandatory Grants disbursed - R64,521m
• Discretionary Grants Special Projects -
  R36,621m
• Administration expenses - R16,452m
• Expenses as percent of SDL Income 11,34
• Net surplus / (deficit) R43,835m
• Total Cash Cash equivalents R248,852
  (Including liability of NSF Funds - R17,261)

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Annual Financials Audit Results Cont. (ii)
Audit Report

• Received an unqualified Audit Report.
• Matters of emphasis
• Supply Chain Management approved on the 22 April
  2005.
• Procurement Policy in place.
• Outstanding
• Established procurement office .
• Appoint procurement officer.
• Ensure total compliance with all policies.

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Committed Funds and Projects
R35,7m implementation of the phase two of the CDW Learnership. R16m Indenture 500 disabled learners in various learnerships. R2,7m Place a total of 135 learners in the MPCCs nationwide. R 13,5 m committed to the Expanded Public Works programme.
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Challenges for 2005 - 2006

• To achieve Government targets qualitatively
  rather than quantatively.
• Not just numbers ,but sustainable life-enhancing
  development.
• To make stakeholders develop an even greater
  appreciation to the reasons for the existence of
  the SETA.
• To rise to the demands of the increased delivery
  within the sector.
• To align our programmes to keep up with the
  changes in legislation and still relocate to the
  needs of the sector
• The dropout rate from employed (people) learners
  due to mainly work overload.
• .

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SPECIFIC ISSUES

1. Insufficient capacity (staff).
2. Governance matters.
3. Insufficient funding to cover sector training
   needs

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CONCLUSION

1. Success is measured in terms of the ability to
   partner our stakeholders to deliver on their
   respective mandates.
2. Aligned our work and resources to the skills
   needs of the sector for effective delivery and
   implementation.