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DEPARTMENT%20OF%20LABOUR

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Title: DEPARTMENT%20OF%20LABOUR


1
DEPARTMENT OF LABOUR
  • PRESENTATION TO THE SELECT COMMITTEE
  • OCTOBER 2007

2
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

3
1. KEY ISSUES PER MAIN DIVISION
4
  • 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
6
1.1 Service Delivery
  • 118 153 unemployed trained and 90 691 (77)
    placed with 36 receiving accredited training.

7
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
8
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
9
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
11
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
12
1.1 Service Delivery
  • 5 692 workplaces in high risk industries
    inspected on OHS. 23 decrease of reported
    incidences.

13
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
14
1.1 Service Delivery
  • The draft OHS Policy and Bill have been finalised
    in consultation with OHS Advisory Council
    comprising of social partners.

15
  • 1.2 ESDS/ HRD
  • Total funds available R2.2 billion
  • Expenditure R714 381 million
  • Commitments R1 067 874
  • Spent against total budget 81

16
  • 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
17
  • 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
18
  • 1.2 ESDS/ HRD
  • R10 million budgeted for the printing of guide
    and training of career guidance counsellors.
    Training targeted to commence during 2007.

19
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
20
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
21
1 148 undergraduate and 1 042 post graduate
students received bursaries totalling R 78.5
million UNDERGRADUATE 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
22
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
23
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
24
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
25
  • 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.

26
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
27
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
28
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.

29
  • 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.

30
  • 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.

31
  • 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.

32
  • 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.

33
  • 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.

34
  • 1.3 LP LMP
  • SEF turnaround strategy approved by the Minister
    and implemented.

35
  • 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.

36
  • 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.

37
  • HRM
  • Employment Equity has been implemented as one of
    the Departments key strategic areas.

38
  • 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.

39
  • 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.

40
2. 2006/07 EXPENDITURE INFORMATION
41
2. 2006/2007 Expenditure Information
42
2. 2006/2007 Expenditure Information
43
2. 2006/2007 Expenditure Information
44
2. 2006/2007 Expenditure Information
45
2. 2006/2007 Expenditure Information
46
AUDITOR GENERAL REPORT 2006/07
  • Department of Labour
  • Sheltered Employment Factories
  • National Skills Fund.

47
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.

48
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

49
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.

50
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.

51
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.

52
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.

53
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 .

54
  • 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.

55
  • 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.

56
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

57
  • 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.

58
  • 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

59
  • 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.

60
  • 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 .

61
  • 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.

62
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.

63
  • 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.

64
EMPHASIS OF MATTER
  • BASIS OF ACCOUNTING (DEPARTURES AND DEVIATIONS)
  • Corrective measures
  • The Department has taken note of the Auditor
    Generals comments.

65
OTHER MATTERS
  • Material corrections made to the financial
    statements submitted for Audit
  • Corrective measures
  • The Department has taken note of the Auditor
    Generals comments.

66
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.

67
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 .

68
THANK YOU
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