P1252428706WlqXS

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Portfolio Committee on Labour 20 October
2005 Presented by Mr. Joel Dikgole (CEO
WRSETA)
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OVERVIEW OF PRESENTATION

• WR SETA PROFILE
• WR SECTOR PROFILE
• NSDS 2001-2005 ACHIEVEMENTS
• OTHER ACHIEVEMENTS
• AFS AUDIT RESULTS
• STRATEGIC PROJECTS
• KEY CHALLENGES 2005-2006

3
WRSETA PROFILE

• BOARD MEMBERS
• MANAGEMENT STRUCTURE
• DEMOGRAPHICS
• REGIONS KZN WC

4
EMPLOYER ORGANIZATIONS

• 6 BOARD MEMBERS FROM
• RA
• FTA
• SOINSA
• SAISA
• HOST

5
EMPLOYEE ORGANIZATIONS

• 6 BOARD MEMBERS FROM
• SACCAWU
• SACTWU
• DICHAWU
• HOTELLICCA
• FEDCRAW
• ECCAWUSA

6
GOVERNANCE STRUCTURE
7
WRSETA MGMT STRUCTURE HEAD OFFICE
CEO
PA
Board Secretariat
COO
CFO
PA
PA
Smme
L/Ships
Skills
IiP
Finance
Projects
IT
SCM
HR
Comms
ETQA
Regions
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Organogram and Demographics
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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
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WR SECTOR PROFILE

• STATISTICS
• COMPANIES REGISTERED
• COMPANIES PARTICIPATING
• CRITICAL SKILLS

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WR SECTOR PROFILE

• SEPTEMBER 2004
• EMPLOYED -2.5m
• RETAIL TRADE SALES -R352bn
• WHOLESALE TRADE -R485bn
• TOTAL SALES -R837bn
• Source Stats in brief 2005-Statistic SA

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Number of Companies

• Levy Paying Companies
• Including-R500 000 Threshold
• Small lt50 employees -24k
• Medium 50-150 employees -664
• Large 150 employees -234

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WR SECTOR PROFILE

• CRITICAL SCARCE SKILLS
• SUPPLY CHAIN MANAGERS
• MANAGERS
• RETAIL IT EXPERTS
• RETAIL TECHNICAL SKILLS
• FINANCE
• Source SSP

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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 Information Technology Experts Retail IT Management Project Management Business Analyst Programmers Analysts Inventory Control Software Developers WR Com. Literacy
Retail Technical Skills Technical Skills Butchery/Blockman Bakery/Confectioner Window Dresser Retail Beauty Sales Food Preparation/Sales Store Designer CAD Designer Visual Merchandisers Repairs-Jewellery,watch, furniture,small appliances
Finance Finance Accounting Internal Audit Credit Controller Credit Clerks
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REGISTERED VS PARTICIPATING ORGANISATIONS5 year
TREND

• REGISTERED ORGS 17k TO 46k
• LEVYPAYING ORGS - 13K TO 24K
• WORKPLACE SKILLS PLANS 564 TO 9,5k
• IMPLEMENTATION REPORTS - 287 TO 6k

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Registered Organisations vs Participating in
Sector
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.
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Participating Organisations
Increase in participating companies
Year 2001/2002 Year 2002/2003 Year 2003/2004 Year 2004/2005
187 563 to 1184 126 1184 to 3478 99 3478 to 8421 31.8 8421 to 9545
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Registered Organisations Per Region
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Participating Organisations Per Region
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Levy vs Grants paid Small (1-49) Category
Category 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005
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
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Levy vs Grants paid Medium (50-149) Category
Category 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005
Levies Received 2 987 414 9 529 381 13 644 928 12 962 489 15 675 515
Grants Paid 610 664 2 824 868 4 082 515 5 425 280 4 981 718
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Levy vs Grants paid Large (150) Category
Category 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005
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
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Levy Income vs Grants paid Total Per Category
Category Small Medium Large
Levies Received 568 m 52m 221m
Grants Paid 234m 18m 175m
Grants Paid 41 34 79
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ANNUAL FINANCIAL STATEMENTS

• OVERVIEW OF FINANCES
• CASH CASH EQUIVALENTS
• SURPLUS FUNDS
• STRATEGIC PROJECTS
• REPORT OF THE AUDITOR GENERAL
• MATTER OF EMPHASIS

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REPORT OF AUDITOR GENERAL

• AUDIT OPINION
• UNQUALIFIED
• EMPHASIS OF MATTER
• RESUBMISSION OF FINANCIAL STATEMENTS

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Finances-General Overview
Actual 2001-2005
R000
Levy Income 971m
Invest Income 75m
Employer grants (46 of levy inc.) Projects Expenses 446m 231m
Administration costs 110m
Available for Strategic Projects 265m
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WRSETA 5 year overview
Information based on audited financial statements
2001 2002 2003 2004 2005
PER YEAR R000 R000 R000 R000 R000
Levy income 71 366 163 247 208 783 241 970 285 757
Invest Income 6 579 20 630 26 453 21 499
Mandatory Grants 25 249 79 834 83 078 109 861 147 763
Project expenses - 15 867 24 848 32 813 157 029
Administration expenses 16 406 15 209 21 718 25 071 31 817
Surplus/ (deficit) 26 359 59 601 101 275 103 144 (24 901)

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Surplus funds - Overview
2001 2002 2003 2004 2005
CUMULATIVE 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
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2004/05 Information
2004/05
Annual Financial Statements R000
SDL Levy Income 80 R285 757
Investment income 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
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Cash and cash equivalents
2004/05
Annual Financial Statements R000
Cash and cash equivalents R365 000
ADD Assets, including levy receivables and fixed assets R52 218
LESS Current liabilities, including grants payable, accounts payables, accruals etc. (R151 740)
Funds available for strategic projects R265 478
LESS Net allocation to projects (difference between total allocation and total expenditure) (R241 784)
Unallocated funds R23 694

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Surplus funds - Overview
2001 2002 2003 2004 2005
CUMMULATIVE 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
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STRATEGIC PROJECTS

• SETA FUNDED
• AMOUNT ALLOCATED R472m
• AMOUNT DISBURSED R230m

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SETA SPONSORED STRATEGIC PROJECTS

• Learnerships R217m
• Capacity Building for Unions R 10m
• 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 30m

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NSDS 2001-2005 ACHIEVEMENTS

• SCORECARD
• ACHIEVEMENTS BY OBJECTIVE
• OTHER ACHIEVEMENTS

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DoL SCORECARDPERFORMANCE ASSESSMENT SUMMARY

Score Comment Comment Comment Comment Comment Comment Comment
NSDS Targets 5 Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA
Governance and Management 5 Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA
Financial Management 2.5 Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA Execllent perfomance levels achieved by the WRSETA
Sector representation and Stakeholder Support N/A Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted. Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted. Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted. Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted. Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted. Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted. Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted.
Overall Score for SETA 4.17
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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. 337687 workers have embarked on structured Learning programmes 35 Levy paying organisations have committed to IiP
Target Exceeded
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Number of People Trained by Companies
Total number of people trained 337687
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PROFILE OF SKILLS PROGRAMMES OFFERED BY ORGS

• TEAMWORK 153,516
• CUSTOMER RELATIONSHIP 58,679
• PRODUCT KNOWLEDGE 26,416
• AIDS 13,800
• SALES 12,136

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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 are receiving grants 487 enterprises are receiving grants 10 learnerships developed
Target Exceeded
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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. 145 SMME retail training companies received facilitation skills training Total of 10061 SMME received support
Target Exceeded
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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
10200 learners have completed the training and mentorship
Target Exceeded
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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 Employed Learners 1427 18.2 Unemployed Learners- 5293
Target Exceeded
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LEARNERSHIPS STATUS
  SETA Target Total Achieved Total Completed Total In Progress Terminations
18.1 2000 1427 671 756  
18.2 4000 5057 1461 3260 336
Total 6000 6484 2132 4016 336
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Learnership Achievements
National Certificate WR Processes (NQF 2) National Certificate WR 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
Total 1658 491 44
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STRATEGIC PROJECTS

• NSF FUNDED
• (R 000m)
• PROJECT RAVE
• AMOUNT ALLOCATED R68m
• AMOUNT DISBURSED R54m
• 18.2 LEARNERSHIP (unemployed)
• AMOUNT ALLOCATED R50m
• AMOUNT DISBURSED R38m

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WRSETA QUALIFICATIONS

• 20 QUALIFICATIONS DEVELOPED
• 11 REGISTERED WITH SAQA DoL
• National certificate Retail shop floor practices
  - NQF Level 2
• National certificate Retail and wholesale sales
  and services technology 4
• National certificate Wholesale and retail credit
  control 4
• National certificate Wholesale and retail
  operations supervision 4
• National certificate Wholesale and retail sales
  practices 3
• National certificate Wholesale and retail
  operations management 5
• National certificate Retail and wholesale
  processes 2
• National certificate Wholesale and retail
  distribution 2
• Wholesale and Retail Generalist 2
• Wholesale and Retail Specialist 4
• Wholesale and Retail Management 5

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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 WRSETA
  qualifications
• 1421 Assessors Registered
• 125 Moderators Registered
• 2193 Certificates for Full Qualifications issued
• 2500 Record of Achievements in SMMEs
• 295 Learning Programmes approved

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BEST PRACTICE

• SAQA Auditors congragulates
• Qualifications Framework
• Balance Score Card
• IT Policies and Procedures

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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
• Implement our Vision Plan
• Assess Evaluate impact

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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

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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

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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

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Thank you
?