Portfolio Committee on Labour 20 October 2005 Presented by: Mr. Joel Dikgole (CEO W&RSETA) OVERVIEW OF PRESENTATION W&R SETA PROFILE W&R SECTOR PROFILE NSDS 2001-2005 ACHIEVEMENTS OTHER ACHIEVEMENTS AFS & AUDIT RESULTS STRATEGIC PROJECTS KEY CHALLENGES 2005-2006 W&RSETA PROFILE BOARD MEMBERS MANAGEMENT STRUCTURE DEMOGRAPHICS REGIONS KZN & WC EMPLOYER ORGANIZATIONS 6 BOARD MEMBERS FROM: RA FTA SOINSA SAISA HOST EMPLOYEE ORGANIZATIONS 6 BOARD MEMBERS FROM: SACCAWU
SACTWU DICHAWU HOTELLICCA FEDCRAW ECCAWUSA GOVERNANCE STRUCTURE Main Board Executive Committee Finance Audit Remuneration Projects Core Functions JIP ETQA W&RSETA MGMT STRUCTURE HEAD OFFICE CEO Labour
Board Secretariat PA COO CFO PA PA Smme L/Ships Regions Skills IiP ETQA Comms Projects HR Finance
IT SCM Organogram and Demographics 45 40 35 30 25 20 15 10 5 0 African White Indian Coloured Female Male STAFF COMPLEMENT African =43 Females = 32
Males = 11 Whites = 7 Females = 6 Males = 1 Coloureds = 6 Females = 4 Males = 2 Indian = 3 Females =1 Males = 2 W&R SECTOR PROFILE STATISTICS COMPANIES REGISTERED COMPANIES PARTICIPATING CRITICAL SKILLS W&R SECTOR PROFILE SEPTEMBER 2004 # EMPLOYED -2.5m RETAIL TRADE SALES -R352bn WHOLESALE TRADE -R485bn
TOTAL SALES -R837bn Source: Stats in brief 2005-Statistic SA Number of Companies Levy Paying Companies Including-R500 000 Threshold Small Medium Large <50 employees -24k 50-150 employees -664 150 + employees -234 W&R SECTOR PROFILE CRITICAL & SCARCE SKILLS SUPPLY CHAIN MANAGERS MANAGERS RETAIL IT EXPERTS RETAIL TECHNICAL SKILLS FINANCE Source: SSP Scarce skills Store Managers Management Store Management Financial Marketer
Marketing Management Call Center Operator Life Skills-HIV/Culturally Diversity/Leadership Supply Chain Managers Supply Chain Management Buyer and Planner Importer & Exporter (Merchandise Planner) Warehouse Management Distributor-DC Warehouse Distributor Logistics Inventory Retail Informati on Technolo gy Experts Retail IT Management Project Management Business Analyst Programmers
Analysts Inventory Control Software Developers W&R Com. Literacy Retail Technical Skills Technical Skills Finance Finance Accounting Internal Audit Credit Controller Credit Clerks Butchery/Blockman Bakery/Confectioner Window Dresser Retail Beauty Sales Food Preparation/Sales Store Designer CAD Designer Visual Merchandisers Repairs-Jewellery,watch, furniture,small appliances REGISTERED VS PARTICIPATING ORGANISATIONS 5 year TREND
REGISTERED ORGS 17k TO 46k LEVYPAYING ORGS - 13K TO 24K WORKPLACE SKILLS PLANS 564 TO 9,5k IMPLEMENTATION REPORTS - 287 TO 6k Registered Organisations vs Participating in Sector 50000 45000 Number of Organisations 40000 Number of paying Organisations 35000 30000 Number of organisations receiving grants 25000
20000 Number of Organisations participating 15000 10000 5000 0 Year 2000/2001 Year 2001/2002 Year 2002/2003 Year 2003/2004 Year 2004/2005 % Increase of registered organisations in the sector Year 2000/2001 17 396 Org. Year 2001/2002 27.98% 22 263 Org. Year 2002/2003 26.23% 28 103 Org. Year 2003/2004
23.94% 34 830 Org. Year 2004/2005 32.89% 46 285 Org. Participating Organisations 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Workplace Skills Plan Workplace Implementation Grants Year 2000 2001 Year 2001 2002 Year 2002 2003 Year 2003 2004 Year 2004 2005
% Increase in participating companies Year 2001/2002 187% 563 to 1184 Year 2002/2003 Year 2003/2004 126% 1184 to 3478 99% 3478 to 8421 Year 2004/2005 31.8% 8421 to 9545 Registered Organisations Per Region 19% 4% 2% 41% Gauteng Mpumalanga 4% 0% Western Cape
Eastern Cape 7% Northern Cape 17% Free State 6% Limpopo North West No. of registered companies Gauteng Mpumalanga Western Cape Eastern Cape Northern Cape Free State Limpopo North West KZN Kwa Zulu Natal Year 5 16105 1318 6781 1512 356
799 466 836 7681 Participating Organisations Per Region 19% Gauteng 41% Mpumalanga 4% 1% Western Cape Eastern Cape Northern Cape 4% 2% Free State Limpopo 7% North West Gauteng Mpumalanga Western Cape Eastern Cape
Northern Cape Free State Limpopo North West KZN Total KwaZulu Natal 3% 19% 738 41 344 70 11 36 23 14 337 1614 1432 177 818 151 32 106 95 105 729 3646
2856 303 1183 395 120 283 156 368 1572 7238 3927 298 1849 628 188 398 90 365 1802 9545 Levy vs Grants paid Small (1-49) Category 180000000 160000000 140000000 120000000 100000000 Levies Received 80000000
Grants Paid 60000000 40000000 20000000 0 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 Category 2000/2001 2001/2002 2002/2003 2003/200 4 2004/200 5 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 16000000 14000000 12000000 10000000 8000000
Levies Received Grants Paid 6000000 4000000 2000000 0 2000/2001 Category Levies Received Grants Paid 2001/2002 2000/2001 2002/2003 2001/2002 2003/2004 2004/2005 2002/2003 2003/2004 2004/2005 2 987 414
9 529 381 13 644 928 12 962 489 15 675 515 610 664 2 824 868 4 082 515 5 425 280 4 981 718 Levy vs Grants paid Large (150+) Category 70000000 60000000 50000000 40000000 Levies Received 30000000 Grants Paid 20000000 10000000 0
2000/2001 Category 2001/2002 2000/2001 2002/2003 2001/2002 2003/2004 2004/2005 2002/2003 2003/2004 2004/200 5 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 600000 500000 400000 300000 Levy Rec. Grants Paid 200000 100000 0 Small Category Levies Received Grants Paid
% Grants Paid Medium Small Large Medium Large 568 m 52m 221m 234m 18m 175m 41% 34% 79% ANNUAL FINANCIAL STATEMENTS OVERVIEW OF FINANCES CASH & CASH EQUIVALENTS SURPLUS FUNDS STRATEGIC PROJECTS
REPORT OF THE AUDITOR GENERAL MATTER OF EMPHASIS REPORT OF AUDITOR GENERAL AUDIT OPINION: UNQUALIFIED EMPHASIS OF MATTER: RESUBMISSION OF FINANCIAL STATEMENTS Finances-General Overview Actual 2001-2005 R000 Levy Income Invest Income 971m 75m Employer grants (46% of levy inc.) Projects Expenses 446m 231m Administration costs
110m Available for Strategic Projects 265m W&RSETA 5 year overview Information based on audited financial statements 2001 2002 2003 2004 2005 R000 R000 R000 R000 R000 163 247 208 783
241 970 285 757 6 579 20 630 26 453 21 499 25 249 79 834 83 078 109 861 147 763 - 15 867 24 848 32 813 157 029
Administra tion expenses 16 406 15 209 21 718 25 071 31 817 Surplus/ (deficit) 26 359 59 601 101 275 103 144 (24 901) PER YEAR Levy income 71 366
Invest Income Mandatory Grants Project expenses Surplus funds - Overview 2001 2002 2003 2004 2005 R000 R000 R000 R000 R000 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% CUMULATIVE 2004/05 Information
2004/05 Annual Financial Statements SDL Levy Income 80% Investment income R000 R285 757 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 Cash and cash equivalents ADD: Assets, including levy receivables and fixed assets LESS: Current liabilities, including grants payable, accounts payables, accruals etc. Funds available for strategic projects LESS: Net allocation to projects (difference between total allocation and total expenditure) Unallocated funds R000 R365 000 R52 218 (R151 740) R265 478 (R241 784) R23 694 Surplus funds - Overview 2001 2002 2003 2004 2005 CUMMULATIV E
R000 R000 R000 R000 R000 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% STRATEGIC PROJECTS SETA FUNDED AMOUNT ALLOCATED R472m AMOUNT DISBURSED R230m SETA SPONSORED STRATEGIC PROJECTS
Learnerships R217m Capacity Building for Unions Qualifications (Dev.) R 7.5m I.S.D.FS R 24m SMMES R 24m ABET R 30m Assessor Training R 7m People Living with Disabilities R 10m R 30m NSDS 2001-2005 ACHIEVEMENTS SCORECARD ACHIEVEMENTS BY OBJECTIVE OTHER ACHIEVEMENTS DoL SCORECARD PERFORMANCE ASSESSMENT SUMMARY Score Comment
5 Execllent perfomance levels achieved by the W&RSETA 5 Execllent perfomance levels achieved by the W&RSETA 2.5 Execllent perfomance 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 improvments submitted. Overall Score for SETA 4.17 NSDS Targets Governance and Management Financial Management NSDS Targets
NSDS 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. t e d g have 337687 workers e r embarked on ed
Tastructured e Learning programmes c Ex 35 Levy paying organisations have committed to IiP Number of People Trained by Companies 22% African Coloured 8% 52% Indian White 18% Total number of people trained = 337687 PROFILE OF SKILLS PROGRAMMES OFFERED BY ORGS
TEAMWORK CUSTOMER RELATIONSHIP PRODUCT KNOWLEDGE AIDS SALES 153,516 58,679 26,416 13,800 12,136 NSDS Targets cont. NSDS Objective Objective 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 aret receiving grants ge d
r de a e receiving T eare 487 enterprises c grants Ex 10 learnerships developed 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. t 145 SMME retail training ge ed r companies Ta eed
received facilitation c skills x training E Total of 10061 SMME received NSDS Targets cont. NSDS Objective Objective 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 t e g ed 10200 learners rhave d and completed the e Tatraining mentorship
ce x E 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 18.2 5293 t e g ed 1427 Employed rLearners a ed T eLearnersUnemployed c Ex LEARNERSHIPS STATUS 0% 41%
Total Completed Total in Progress Terminations 59% SETA Target Total Achieved Total Complete d Total In Progress Termination s 18.1 2000 1427 671 756 18.2
4000 5057 1461 3260 336 6000 6484 2132 4016 336 Total Learnership Achievements 18.1 and 18.2 Achieved per Qualification National Certificate: W&R Processes (NQF 2) 1200 1000 National Certificate: W&R Sales and Service Technology (NQF 4)
800 600 400 National Certificate: Certificate in Retail Operations Management (NQF 5) 200 0 18.1 National Certificate: W&R Processes (NQF 2) Total 18.2 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 1658 491 44 STRATEGIC PROJECTS NSF FUNDED (R 000m) PROJECT RAVE AMOUNT ALLOCATED AMOUNT DISBURSED R68m R54m 18.2 LEARNERSHIP (unemployed) AMOUNT ALLOCATED AMOUNT DISBURSED R50m
R38m W&RSETA QUALIFICATIONS 20 QUALIFICATIONS DEVELOPED 11 REGISTERED WITH SAQA & DoL National National National National National National National National certificate: certificate: certificate: certificate: certificate: certificate: certificate: certificate: Retail shop floor practices - NQF Level Retail and wholesale sales and services technology Wholesale and retail credit control 4 Wholesale and retail operations supervision Wholesale and retail sales practices 3 Wholesale and retail operations management Retail and wholesale processes
2 Wholesale and retail distribution 2 Wholesale and Retail Generalist Wholesale and Retail Specialist Wholesale and Retail Management 2 4 5 2 4 4 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 BEST PRACTICE SAQA Auditors congragulates : Qualifications Framework Balance Score Card IT Policies and Procedures CHALLENGES Increase training and participation of SMMES Form strategic private,public & community partnerships Capacitate and Accredit SMME Providers Develop exit strategies - Learnerships Develop new demand-led qualifications Address Scarce Skills National Presence Provincial Roll-out
Strategy Specific Issues for Portfolio Committee Attention R500K exemption has caused the following: There will be no database of businesses to work with (A suggestion to work with DTI database) Number of SMMEs participating has been reduced Reduced funding base Increased administration to better manage non-levy paying companies Companies pay levies but do not train employees. Placement of unemployed remains a challenge. Other government agencies should be encouraged to work with the SETAs Key Challenges for 2005 2006 contd. To establish partnerships with Education Institutions for driving. New Venture Creation ABE Institutes of Sectoral Excellence High Level Qualifications
Informal Sector Skills Development RPL To foster cooperation with Provincial & Local Government to localise delivery To initiate Public Private Partnerships with Corporates in the Sector for the benefit of SMMEs and the unemployed, especially women To improve our impact assessment mechanisms so that we can be able to improve our delivery to the sector. To refine our discretionary grant disbursement capability Key Challenges for 2005 - 2006 To establish the SETA presence in all provinces To establish a comprehensive list of scarce skills in the sector To develop skills programmes that adequately address the needs of the sector To create a seamless interface with other SETAs that will enable employees in our sector to access skills programmes in those SETAs To initiate learnerships that result in placement for the unemployed To increase the number of providers that are accredited to deliver Wholesale and Retail training programmes To increase the number of SMMEs that participate in skills development Thank you ?
