Presentation to the Portfolio Committee on Higher Education

Presentation to the Portfolio Committee on Higher Education

Presentation to the Portfolio Committee on Higher Education and Training 11 August 2010 Parliament of South Africa Delegation Mr. Ivan Molefe - Chairperson of the Board Mr. Mike Wilson - Board member Mr. Joel Dikgole - Chief Executive Officer Ms. Daphne Matloa - Chief Financial Officer

Mr. Andile Sipengane - Chief Officer: Qualifications and Research Dr. Hennie Zwarts - Chief Operating Officer Presentation Structure 1. Mandate, Budget and Strategic Plans 2010/11 2. Budget analysis of the 2009/10 financial year 3. SWOT Analysis of W&RSETA 4. Provincial allocations and special projects for 2010

5. Plans to reduce the high unemployment rate among young people 6. Training providers and BEE status including allocation / budget spent per provider 2010/11 Strategic Plans & Budgets NSDS Indicator Action Plan Target Projected Budget 1 1.1 Update SSP Develop 2011 2016 SSP 31 Aug 10 R3m 2 1.2: Scarce Skills Guide Develop guide

600 R6m 3 2.1: WSP/ATR Large Levy Paying Regions 290 R 230 m 4 WSP/ATR Medium Levy Paying ISDF Project R 8m Mandatory Grants for levy paying organisations 545 5 2.5: Small BEE Firms and Co-ops Support to Organisations 700 R 20m 6 2.7: NQF Level 1 & ABET

Interventions AET Interventions 600 R 15m 2.2 WSP / ATR Small Levy Paying HET 3307 2010/11 Strategic Plans & Budgets NSDS Indicator Action Plan Target Projected Budget 7 2.8: Learnerships and Skills Programmes Concentration on

employed learners 2500 R 80 m 8 3.2: Small non-levy paying organisations Project RAVE II 1000 R 30m 9 4.1: Learnerships / Skills Programmes Concentration on unemployed learners 650 R 40m Artisans training

50 R 10m 10 4.3: New Venture Creation 2010/11 Strategic Plans & Budgets NSDS Indicator Action Plan Target Projected Budget 11 5.1: Institutes of Sectoral Excellence (ISOEs) Skills Centres: 1000 learners 2 R 30 m 12 5.2: NVC Providers Accredited Training

Providers 2 R 500K NSDS Targets Action Plan Target Projected Budget 13 SETA Accreditation SAQA audit Accreditation R 500K 14 Provincial linkages Participation in Provincial 9 Skills Development Forum R 4,5 m 15 Governance SETA Board

Audits / Board / AGM R2m Clean audit reports 2010/11 Strategic Plans & Budgets SETA Targets Action Plan Target Projected Budget 16 HET & FET Collaboration Final year students enrolled on scarce skills qualifications offered a 12 months sponsored work opportunity with a monthly stipend. 2000 R 20 m

17 Inter-SETA Collaboration Rural projects for learners 1000 R 50m 18 Management Development Programme Stakeholder committee to develop programme 30 R 10 m 19 Women Development Programme Stakeholder committee to develop programme 50 R 10 m Priority 2 NSDS 2.5 Skills for Rural Development and Co-operatives

Collaboration with other SETAs eg. AGRISETA Partnerships with CBOs, NGOs & Co-ops should be considered to promote community involvement; Partnership with FETs to build delivery capacity Market rural programmes through radio broadcasts identified as a very effective form of reaching the rual and deep rural areas Target: 1000 learners Priority 3 Workplace Learning Opportunities to Accompany FET/HET Market work-based learning to 5 000 participating organisations to offer at least 1 learner an opportunity; Target: 3 500 in small organisations, 500 graduates and 1 000 retrenched in medium and large companies; Minimum 6 to 18 months work-based learning opportunities with stipend for duration of Training Permanent employment opportunities if possible; Small organisations supported to implement work-based learning Training providers and training materials Work-based learning guide Adult Education and Training NSDS 2.7 Refocus ABET to AET; Implement RPL to establish skills gaps; W&RSETA NQF Level 1 Qualification approved and Learnership registered; 900 learners currently on NQF Level 1 Business Practice

Learnership; Implement recently registered W&R NQF Level 1 Learnership 2009/10 Budget Analysis STATEMENT OF FINANCIAL PERFORMANCE COMPARISON TO BUDGET FOR THE YEAR ENDED 31 MARCH 2010 ` ACTUAL 2009/10 R000 BUDGET 2009/10 R000 VARIANCE Favourable (unfavourable) Skills Development Levy: Income 466515 Skills Development Levy: penalties and interest 4132 Other income (213) 411920 0

54595 4132 (213) TOTAL REVENUE 411920 58514 REVENUE 470434 2009/10 Budget Analysis STATEMENT OF FINANCIAL PERFORMANCE COMPARISON TO BUDGET FOR THE YEAR ENDED 31 MARCH 2010 ACTUAL 2009/10 R000 BUDGET 2009/10 R000 VARIANCE Favourable EXPENDITURE

Employer grant and project expenses Administration expenses (381474) (52308) (596172) (52449) 214698 141 TOTAL EXPENDITURE (433782) (648621) 214839 (unfavourable) 2009/10 Budget Analysis STATEMENT OF FINANCIAL PERFORMANCE COMPARISON TO BUDGET FOR THE YEAR ENDED 31 MARCH 2010 SURPLUS /(DEFICIT) FROM OPERATIONS Interest Income NET SURPLUS/(DEFICIT) FOR THE YEAR

ACTUAL 2009/10 R000 BUDGET 2009/10 R000 VARIANCE Favourable (unfavourable) 36652 (236701) 273353 60854 72600 (11746) 97506 (164101) 261607

Strengths Provincial presence; Large constituencies levy income; Sound governance (clean reports AG, SAQA, DoL): Qualified staff (intellectual capital); Formalised policies; Performance Management System (PMS) for staff; IiP organisation standard of good practice ; Efficient mandatory grant payment system; experienced and effective SGB; good reputation amongst stakeholders; responsive to sector needs; Career path and scarce and critical skills guide for the sector (qualifications framework); Stable leadership Weaknesses poor SMME participation in rural areas; disbursement of funds; lack of W&R programmes in FETs and HETs; ratio of employees : training providers is not balanced; high learner drop out rates; poor stakeholder buy-in and participation; inadequate project management; fragmented SMME sector; inadequate communication reach; inadequate IT infrastructure Opportunities Rural outreach and participation (require inter-SETA collaboration, increase training and provider base;

reduction of unemployment amongst youth and graduates; transition to DHET- opportunities for better collaboration with HETs; development of qualifications from NQF level 5 10; integration of work-based experience with curriculum; positioning W&R as career of choice (opportunity to provide progression from school university workplace; proposed new landscape transfer of Motor and Fuel Retail sectors; qualifications partner with QCTO; vibrant informal sector; emerging new trends opportunities for qualifications; high number of unskilled people; Threats SETA Relicencing by Minister of HET (new SETA landscape); registration as quality and assessment partner; cash reserves taken over by National Treasury; economic crisis / recession; drastic changes in legislation resulting in non-existence of the SETA; poor governance (placement under administration, financial management, Board); loss of credibility with stakeholders; fraudulent activities; sector is not preferred career of choice sectoral determination base low, long irregular hours; impact of SARS collection systems on levy income Current Special projects Limpopo / Mpumalanga W&RSETA / P&L Hardware (R 990K) Management development programme for 60 Managers to retain them within the company and province

Eastern Cape W&RSETA / South African Institute of Chartered Accounts (R 4,5m) 35 learners on pilot programme to address accounting skills within sector Free State W&RSETA / Free State Department of Public Works (R 4m) 30 learners on NVC project 2010 Projects No. of Learners Project Name Region Budget Grassroots GP R 10,020,000 200 Makro ABET for Deaf people 09/10 GP

R 255,000 138 DG 10/11 - Smollan GP R 18,480,000 560 DG 10/11 - Cashbuild GP R 660,000 20 DG 10/11 - Devland Cash & Carry WEEG project GP R 300,000 20

DG10/11-Cecil Nurse WEEG project GP R 60,000 4 DG 10/11 - Duplix Liquids GP R 33,000 11 DG 10/11 - Ellerines GP R 150,000 10 DG 10/11 GSM GP R 2,310,000

70 WSP/ATR 2010/2011 National R 8,000,000 2010 Projects Budget No. of Learners KZN R 5,500,000 300 DG 09/10 - Learnerships KZN KZN R 8,530,500 235 Perfect Match - New Venture Creation

KZN R 1,046,000 20 DG 09/10 -Apex Stationers Learnership EC R 185,000 5 FastVents 22 CC Disability Learnership EC R 2,365,000 50 DG10/11 MP/ LP R 5,808,000 160

Shoprite Special WC R 19,437,000 1000 DG 09/10 - Africa Skills Village WC R 1,248,000 25 DG 09/10 - Mason WC R 55,000,000 100 DG 09/10 - WEEG CPUT WC R 1,097,250

133 SMME Voucher System National R 51,054,000 8000 New Venture Creation National R 4,076,000 74 Project Name Region W&R SETA/ CTFL Project Regional Allocations and Special Projects for 2010/11 KwaZulu Natal FET/W&RSETA Collaboration (R 18, 6m) Train 300 learners on NQF level 1 qualification; 300 NVC start up in Nkandla, Nambithi and Ugu Capacitaton of FET and BEE providers

Eastern Cape Collaboration with St Thomas FET College (R 874K) Train 50 deaf learners in food handling and bakery programmes. Learners to be employed on completion of programme; Capacitate 12 facilitators, moderators & assessors Future Projects Eastern Cape BEE Co-operative Skills Project (R 1,7 m) 55 BEE co-ops supported; 200 learners to be trained from Transkei and Ciskei Just On Cosmetics (R 2,7m) Collaborate with EC Midlands FET public colleges; train 50 unemployed youth on NVC Learnership; 50 small business in rural EC; Future Projects Western Cape Upskilling Mathematics and Literacy skills of Matriculants (R 3,3m) 500 grade 12 learners to prepare them for next level of learnership; Partnership with FET college Crafters Project non-levy paying (R 375K) 350 levy paying owners / managers to be trained; Free State / Northern Cape and North West (R 19,7m) Capacitate FET colleges in Motheo, Lejwleputswa, Maluti-a-Phofung and Fezile Dabi to offer W&R qualifications; Capacitate FET colleges to become ISOEs 200 learners to be trained Reducing High Levels of Unemployment

Projects to address demand within sector to improve chances of youth employment W&R Scarce Skills Sponsorship Programme (R 50m) 2 000 Final year students and graduates to gain workplace experience on scarce and critical skills Workplace Experience and Employment Grant (WEEG) 2010/11 (R 253 m) 5 000 matric school leavers, unemployed graduates and retrenched W&R employees to gain workplace experience in small companies. Reducing High Levels of Unemployment WEEG Project for FET Colleges (R 10m) 300 final year learners placed in companies to gain workplace experience; partnership with WC Department of Economic Development and Tourism Learning Programmes 2010/11 (R 100m) 2 000 learners on learnerships; 1 000 & 500 retrenchees on learnerships and skills programmes respectively Edcon (R 17,9m) 320 learners on learnerships Reducing High Levels of Unemployment eDEAF II (R 3,2m) 34 learners with hearing disabilities on skills programmes. Thabo Mbeki Development Trust for the Disabled (R 8m) 100 learners enrolled on learnership programmes. 50 graduated in July 2010. Makro Cadetship Programme (R 2,6m) 50 learners on cadetship programme. Learners will acquire BCom degree and will be placed within Makro stores. Training Provider Demographic Spread Number of Training Providers

Provincial spread of Accredited BEE Training Providers Budget Allocations to BEE Providers Total funding Provider Name Region Aluwa Training GP R 1 206,000.00 Asikhulume Training and Development NC R 0.00 B Wise Skills Development Consultants KZN Colatmse Institute EC R 45 455.00

Entercom EC R 2 130, 000.00 Grow Makhosikati Trading MP R 150 000.00 Khulisane Academy GP R 42 000.00 Kopure Business Trading and Consulting FS R 1 375 000.00 Letsatsi Learning Solutions (PTY) Ltd GP R 852, 000.00

Linganani Consultants T/A Phoenix GP R 175 000.00 Makwedeng Training Pty (Ltd) KZN R 525 000.00 R 3,171,000.00 Budget Allocations to BEE Providers Total funding Provider Name Region Marrian Ridge Computer Centre CC KZN R 9 019 800.00 Masifunde WC

R 100 000.00 Perfect Match Enterprises KZN R 1,046,000.00 Siyathembana WC R 45 455.00 SPY-4-U WC R 136 000.00 Thahameso Training & Development Services KZN R 130 000.00 Thuto-Lore Academy LP

R 220 000.00 Titan Skills Developers KZN R 441 000.00 Triple L Academy WC R 795 000.00 Thank you! Questions and Comments, please

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