Parliamentary Committee: Minerals and Energy ANNUAL REPORTING 2002-03 Parliamentary Committee: Minerals and Energy Dr. Menzi Mthwecu, CEO 10/09/2003

PRESENTATION Outline MQA SYSTEMS Established SECTOR SKILLS Targets QUALIFICATIONS Designed LEARNERSHIPS Registered TRAINING PROVIDERS Accredited STRATEGIC PROJECTS Implemented Challenges and New Developments SETA REVIEW

MQA SYSTEMS Established Stakeholder Board and Committees in place (being reviewed ito King 2) HR and Performance Management Systems (being amended) Information Management System maintained Communication Strategy being reviewed SETA REVIEW

SECTOR SKILLS Targets ABET provision of 50% by March 2005 Learnerships (employed and unemployed) 15% intake and 50% completion and in employment by March 2005 Company participation (large 75%, small 40%) National Skills Fund utilization measured Departmental participation NOT APPLICABLE SETA REVIEW

SKILLS PLANS AND REPORTS Approved 266 SDFs registered and trained 150 Company Skills Plans 144 Annual Training Reports WSP & ATR Analysis Report published SKILLS PLANNING

QUALIFICATIONS Designed 21 Qualifications registered on NQF 622 Unit Standards registered on NQF Attendance Grant disbursed to employers Industry Qualifications Framework adopted by SGB QUALIFICATIONS DESIGN

LEARNERSHIPS Registered 35 Learnerships DoL Registered MQA Learnership Grant R10 000 approved plus tax deductibles (unemployed R50 000, employed R42 500) MQA Skills Programmes grant R250 approved 10 Fall of Ground Skills Programmes MQA Registered 1623 Apprenticeships administration continued Learning Materials developed in ABET and Fall of Ground learning areas Database of Learners maintained LEARNERSHIPS

TRAINING PROVIDERS Accredited 340 Assessors registered by MQA Moderation policy adopted by MQA Board ISO 9001:2000 Certification for MQA Office ETQA

STRATEGIC PROJECTS Implemented 135 Bursars at technikons and universities ABET Projects: learning materials commissioned, ABET Practitioner Training planned, ABET grants approved Ex-Mineworker training planned in rural labour sending areas Jewellery research undertaken with HSRC-GTZ Small-scale miner training projects: unit standards, skills programmes, HSRC research STRATEGIC PROJECTS

Challenges facing MQA Staff retention and capacity building Build HDSA component amongst stakeholders Meet GDS in learnerships targets Respond to Mine Health and Safety Act – changes to regulations SETA REVIEW

New Developments Mining Charter targets & role of the SETA Review of NQF/SAQA Act Growth and Development Summit Targets Amendments to Skills Development Act and new national skills targets SETA OVERVIEW

SKILLS GRANTS Disbursed CONTENTS Income Statement Balance Sheet SDL Levy Allocation % Contributing Employers Info Allocation of Surplus Funds Milestones at 31 August 2003 Estimated Levies Grant Payments Schedule Top 50 Employers SKILLS GRANTS

INCOME STATEMENT Y/E 31 MARCH 2003 Y/E 31/3/2003 Y/E 31/3/2002 TOTAL REVENUE 255 833 220 400 TOTAL EXPENSES 139 079 75 995 NET SURPLUS FOR THE YEAR 116 756 (NSF INCOME & EXPENDITURE INCLUDED ABOVE)

BALANCE SHEET AS AT 31 MARCH 2003 FUNDS & LIABILITIES Y/E 31/3/2003 Y/E 31/3/2002 ADMIN RESERVE 43 286 EMPLOYER GRANT RESERVE 121 004 78 000 DISCRETIONARY FUND RESERVE 117 038 SKILLS DEVELOPMENT GRANTS PAYABLE 45 883 113 252 OTHER PAYABLES 4 637 3 821 TOTAL NET FUNDS & LIABILITIES 288 562 238 359

BALANCE SHEET AS AT 31 MARCH 2003 (CONTINUED) ASSETS Y/E 31/3/2003 Y/E 31/3/2002 NON CURRENT ASSETS 1 855 1 777 SKILLS DEVELOPMENT LEVY DEBTORS 61 130 55 302 ACCOUNTS RECEIVABLE 1 411 1 278 CASH AND BANK 224 166 179 010 TOTAL ASSETS 288 562 238 359

SDL LEVY ALLOCATION % 20% is transferred directly to NSF for strategic national projects SETAs are allowed 10% for admin and operational costs 70% is available for grants to employers

SDL LEVY ALLOCATION % (continued) 70% available to employers for grants on approval of: Workplace Skills Plan (15%) Annual Training Report (45%) Discretionary Grant (10%) Skills Programs grant & Learnerships grant

CONTRIBUTING EMPLOYERS INFORMATION This information is based on the Levy numbers downloaded from DoL each month Registered employers = 3445 Levy Paying = 2106 Claiming grants = 244 organisations Top 50 Levy paying companies contribute 74% of the total levy received from the sector

MILESTONES ACHIEVED as at August 2003 Mandatory Grants WSP Year 2(2001/2002) = R43,883,601 ATR Year 2(2001/2002) = R105,230,605.42 WSP Year 3(2002/2003) = R27,981,547.28

MILESTONES ACHIEVED as at Aug 2003 (cont) Discretionary Grants Blasting and App Grant Year 2 = R30,351,426.88 SGG Grant = R686,553 QMS Grant = R2,909,088 App Grant Year 3 = R14,606,555.04 Blasting Cert Grant Year 3 = R11,976,774.04

Learnerships & Skills Programmes ESTIMATED LEVIES 2002/03 2003/04 Beneficiary 20% NATIONAL SKILLS FUND R58m R58 NATIONAL SKILLS FUND 10% SETA ADMIN R32m R25m MQA 15% SKILLS DEVELOPMENT FACILITATOR & WORKPLACE SKILLS PLAN SUBMISSION R44m R43m EMPLOYERS 45% IMPLEMENTATION / ANNUAL TRNG REP. R130m R131m STRATEGIC MQA SECTOR NEEDS R30m R29m Learnerships & Skills Programmes

GRANT PAYMENT SCHEDULE FOR 2003/2004 Grant Type Date of payment Levies received for: WSP Year 3 (15%) (Last tranch) 30 June 2003 December 2002 to March 2003 ATR Year 3 (45%) (once-off payment) 29 August 2003 April 2002 to March 2003 #WSP Year 4 (15%) & Skills/Learnership grants April 2003 to May 2003 WSP Year 4 (15%) 31 October 2003 June 2003 to July 2003 *WSP Year 4 (15%) 12 December 2003 August 2003 27 February 2004 September 2003 to November 2003 30 April 2004 December 2003 to January 2004 30 June 2004 February 2004 to March 2004

THANK-YOU FOR ATTENDING OPEN DISCUSSION THANK-YOU FOR ATTENDING