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1
WELCOME
Isett Seta Briefing Session to The
Parliamentary Portfolio Committee on Labour 11th
November 2005
Mr. Oupa Mopaki Chief Executive Officer
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INTRODUCTION

• The following presentation provides insight into
  the Isett Sector which comprises of the following
  sub-sectors
• Information Systems (IT)
• Telecommunication Technologies
• Electronics

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TABLE OF CONTENT

• NSDS 2001 2005 ACHIEVEMENTS
• SECTOR SKILL PLANNING (SSP)
• LEARNERSHIPS
• EDUCATION AND TRAINING QUALITY ASSURANCE (ETQA)
• MARKETING COMMUNICATIONS
• RURAL ACCESS
• PARTNERSHIPS
• FINANCIALS
• CHALLENGES

SLIDE NUMBER 3 4 5 6 7 8 9 10 11 12 13
14 15
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NSDS 2001 2005 ACHIEVEMENTS

• Indicator 1.1 Number of Workers at NQF 1
• As at March 2005, 95 (baseline 201,400) of
  employees in the Isett sector had a qualification
  higher than NQF Level 1 on the National
  Qualifications Framework.
• Indicator 1.2 Number of workers on structured
  learning programmes
• As at March 2005, 63 (127,675) of employees in
  the Isett sector had been scheduled for
  structured skills development programmes. WSPIRs
  were due on the 30th April 2005.
• Indicator 1.3 Number of enterprises that
  achieved National Standard of People Development
• As at March 2005, 13 enterprises have committed
  and were starting to implement Investors In
  People (IIP). Only one enterprise had already
  achieved the Standard.

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NSDS 2001 2005 ACHIEVEMENTS

• Indicator 2.1 Number of large enterprises that
  received skills development grants
• As at March 2005, 104 enterprises with more than
  150 employees were claiming grants. This
  represents 100 participation.
• Indicator 2.2 Number of medium enterprises that
  received skills development grants
• As at March 2005, 152 enterprises in the Isett
  sector employing between 50 and 149 employees
  were claiming grants. This represents 100
  participation.
• Indicator 2.3 Number of Learnership
  Qualifications available to workers in sector
• As at March 2005, 15 Learnership Qualifications
  were registered and made available across the
  Isett sector.

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NSDS 2001 2005 ACHIEVEMENTS

• Indicator 3.1 Number of small enterprises that
  received skills development support
• As at March 2005, 4.5 of companies with 1-49
  employees are participating in the Skills
  Development Initiatives. Large businesses were
  encouraged to assist small businesses with skills
  development as well.
• Indicator 5.1 Number of unemployed young people
  that entered Learnerships
• As at March 2005, 6 731 Learners, of which 6395
  were under the age of 30, have entered Isett Seta
  funded Learnerships and 1 546 have completed
  those Learnerships.
• Number of learners on Learnerships that were
  placed in employment
• As at March 2005, 1,546 of Learners have
  completed Learnerships while 894 have been
  permanently placed, and 600 are studying further,
  52 unemployed.

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• SECTOR SKILLS PLANNING
• (SSP)

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LEVY PAYING COMPANIES BY SIZE
COMPANY SIZE COMPANIES TOTAL
1 - 49 4357 94.5
50 - 149 152 3.3
150 104 2.2
Total 4613 100.0
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EMPLOYEES BY COMPANY SIZE
TOTAL EMPLOYEES TOTAL EMPLOYEES
COMPANY SIZE POPULATION OF TOTAL
1 - 49 50, 456 23.8
50 - 149 23,108 10.9
gt150 138, 436 65.3
TOTAL 212, 000 100.0
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COMPANY PARTICIPATION
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EMPLOYEE PROFILE
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SCARCE SKILLS
Description/category of scarcity identified Related occupation Projected need over next 2 years Learning programme to address scarcity
IT Technical Support (Hardware and Networking) IT System Development (Software Development incl. database) Physical and Engineering Science Technicians 316 369 (Isett and Non-Isett) Isett 116 659 Non-Isett199 710 Skills programmes, internships and learnerships
3. Telecommunication Technology 4. Electronics (Dev. and Maintenance) Electrical and Electronic equipments mechanics and fitters 181 550 (Isett and Non-Isett) Isett 68 296 Non-Isett113 254 Skills programmes, internships and learnerships
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SCARCE SKILLS - Cont.
5. Project Management Project Management 2 232 (Isett Non-Isett) Isett 1 100 Non-Isett 1 132 Skills programmes and learnerships
6. Venture Creation (Entrepreneurship) Business Professionals 1 648 (Isett Non-Isett) Isett 565 Non-Isett 1 083 Skills programmes and learnerships
7. End User Computing Administrative Support Staff 4 048 (Isett Non-Isett) Isett 1 123 Non-Isett 2 925 Short course
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• LEARNERSHIP

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LEARNERSHIP HIGHLIGHTS

• Target of 3 500 achieved and exceeded by 192 (3
  231)
• 6 731 learners in Learnership Programmes (90 are
  18.2 under 30 years)
• 23 have successfully completed, of which 58 are
  Employed or Self-employed
• 99.2 are Black, 43.1 Female, while 5.4 are
  people with Disabilities
• R222 million invested towards implementation

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BENEFICIARIES
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HIGH LEVEL ICT SKILLS

• Target BSc graduates
• 470 learners trained in high level skills
  (Internships)
• 57 completed training and have graduated, of
  which most are employed with various companies
• 43 are in progress
• 93 are Black, 44 Female

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• EDUCATION TRAINING QUALITY ASSURANCE
• (ETQA)

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REGISTERED QUALIFICATIONS
Title of Qualification NQF Level Number of Credits
National Certificate Telecommunications for Customer Premises Equipment 2 120
National Certificate in Telecommunications for Customer Premises Equipment 3 135
National Certificate Telecommunications for Customer Premises Equipment 4 152
National Certificate Information Technology Technical Support 4 163
National Certificate Information Technology Systems Development 4 178
National Certificate Information Technology Systems Support 5 147
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REGISTERED QUALIFICATIONS Cont.
Title of Qualification NQF Level Number of Credits
Masters Degree in Engineering Telecommunications Engineering 7 180
Masters Degree in Engineering - Information Engineering 7 180
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ACCREDITATION
Category Description Number Of SMME Accredited Training Providers Number Of SMME Accredited Training Providers
Category Description Full Accreditation Provisional Accreditation
1 - 49 Small Micro 16 7
50 -149 Medium 2 2
150 Large 1 0
Total 19 9
There were 450 applicants assisted to acquire
accreditation
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ASSESSORS MODERATORS
Number Of Registered Assessors Moderators as at March 2005 Number Of Registered Assessors Moderators as at March 2005
Assessors Moderators
54 6
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• MARKETING COMMUNICATIONS

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MARKETING COMMUNICATIONS

• Events
• Road Shows
• Exhibitions
• Graduations
• Media Releases (Print Visual)
• Publications Broachers
• Website

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RURAL ACCESS

• To ensure rural coverage, the following
  Learnerships projects have been implemented
• Limpopo (Mogalakwena i-Community Presidential
  Project)
• Free State (Qwaqwa FET Colleges)
• North West (Klerksdorp, Rustenburg)
• Northern Cape (Upington, Kimberley)
• Other Projects
• Train the trainer IT Facilitator programme
  (Limpopo, North West, Mpumalanga, Northern Cape
  and Free State)

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PARTNERSHIPS

• Mpumalanga Provincial Government (Premiers
  Office)
• North West Provincial Government (Premiers
  Office)
• Free State Provincial Government (Premiers
  Office)
• Eastern Cape Provincial Government (Premiers
  Office)
• Gauteng Provincial Government (Premiers Office)
• KwaZulu Natal Provincial Government (Smart
  Exchange)
• Limpopo Provincial Government and Hewlett Packard
• State IT Agency (National)
• Department of Public Works (Expanded Public Works
  Programme)

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• FINANCIALS

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ANNUAL FINANCIALS AUDIT RESULTS
Item R000
SDL Income R210,345
Total Investment Income R16,395
Total revenue R265,981
Total Expenses R245,313
Expenses as Percent of SDL Income 99
Net surplus / (deficit) R20,668
Total Cash Cash Equivalents R168,615
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COMMITTED FUNDS AND PROJECTS

• The funds will be utilised as follows
• R100.000m will be used for Grant payments.
• R68.615m will be used for Learnerships
  commitments.

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ANNUAL FINANCIALS AUDIT RESULTS
The final audit report is a disclaimer of opinion
report. The major issues that brought about this
disclaimer are
FINDINGS ACTION PLAN DUE DATES
Treatment of VAT We have requested an extension of two months from SARS for the final submission of the Vat. The extension is from 30 September 2005 to 30 November 2005.A firm of consultants was engaged to look at the entire VAT treatment of the Grants system from the inception of the Isett to date 30th November 2005
Unrecorded Liabilities We have put in place the discipline of closing off the system and cutting off properly to the next period. 30th November 2005
Grant Overpayment We will put in place a process that will ensure that the completeness of revenue is assured on a monthly basis. 30th November 2005
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ANNUAL FINANCIALS AUDIT RESULTSCont.
FINDINGS ACTION PLAN DUE DATES
Fundamental Error We will ensure full compliance with AC111 on Revenue recognition. Whereas previously revenue was accounted for on a cash basis we have now switched to the accrual basis of recognition. 30th November 2005
NSF Projects. A separate set of general ledger accounts has been set up in order to account for NSF projects separately from Isett accounts. Thus all SLAs signed with the vendors will now distinguish between the Isett and the NSF obligations and payments will be split accordingly between the two. 30th November 2005
Opening Balances The discipline has already been put in place to close off the system (Great Plains) every month and do proper cut-offs from month to month. 30th November 2005
Fixed Assets Fixed Assets register will be updated to ensure full compliance with Companies Act and PFMA 30th November 2005
NB The Isett Seta Performance Management System
is also utilized to address the findings.
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KEY CHALLENGES FOR 2005 - 2006

• Funding for progressing all learners from NQF
  level 4 to 5
• Implementation of ICT Learnerships in far rural
  areas
• Acquiring more funding from the NSF
• Financial constraints in establishing offices in
  all provinces (DoL initiative, SITA partnership)
• Achieving a clean audit

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THANK YOU!!
Please visit our website http//www.isett.org.
za/