SASSETA ANNUAL GENERAL MEETING Presentation to Stakeholders October 26th 2018 Gen. Nhlanhla Mkhwanazi Mr. Ikalafeng Diale

Focus of the presentation Financial Performance Revenue Expenditure Analysis Financial Position Commitments Fruitless and Wasteful Expenditure Irregular Expenditure

Financial Performance 2017/18 Financial Year

R’000 Financial Year 2017/18 2017/16 2016/15 Revenue Expenses Employer grant and project expenditure Administration expenditure Surplus 427 105 (341 379) (246 477) (94 902) 85 727 387 290 (261 856) (184 561) (77 294) 125 434 359 694 (320 310) (249 917) (70 393) 39 384

Revenue Trend INVESTMENT INCOME CONTRIBUTIONS -GOVERNMENT DEPARTMENTS LEVIES - PRIVATE ENTITIES 24,9 105,5 13,4 5,5 108,1 102,1 252,1 266,4 296,7 R’000 2015/16 359,7 2016/17 387,9 2017/18 427,1

EXPENDITURE ANALYSIS R’000 2015/16 2016/17 2017/18 ADMINISTRATION 201,6 R’000 193,2 137,9 2015/16 2016/17 2017/18 94,9 77,3 70,4 53,2 48,3 46,6 ADMINISTRATION MANDATORY GRANTS DISCRETIONARY GRANTS

Factors for Administration Expenditure 1990 Inflation Adjustment Cost of Employment and filling of vacant positions 1995 2000 Cost of the Administration process 2005 Stabilisation of ICT infrastructure 2010 Legal Fees

FINANCIAL POSITION R’000 2015/16 2016/17 2017/18 Assets Current 2015/16 2016/17 2017/18 R’000 Assets Current Non-Current Liabilities Reserves Admin Mandatory Discretionary 180 768 3 184 183 952 288 387 3 078 291 474 396 608 2696 399 304 61 686 - 43 599 - 65 706 - 3 184 42 119 042 122 268 2 696 923 329 978 333 597 3 087 706 244 081 247 874

SUMMARISED COMMITMENT REGISTER Learning Interventions ABET Artisan Bursaries (Workers and Unemployed) Learnerships (Employed and Unemployed) NGO, CBO, NLPE support Skills Programmes (Employed and Unemployed) Internships TVET Student Placement University Student Placement Commitment (R’000) 2015/16 = R 136 229 2016/17 = R 227 519 2017/18 = R 318 472

Fruitless and Wasteful Expenditure 2017/18 2016/17 2015/16 Opening Balance 3 681 3 155 25 616 Add: Current Year 53 107 596 Add: Prior Year 19 2092 -- Less: Amounts Condoned -- -- (23 057) Less: Amounts Recovered (664) (1 673) -- TOTAL 3 089 3 681 3 155

Irregular Expenditure 2017/18 2017/16 2016/15 Opening Balance 1 118 64 555 139 710 Add: Current Year 2 069 798 282 Add: Prior Year -- -- 138 622 Less: Amounts Condoned -- (64 225) (194 332) Less: Amounts Recovered -- (1 673) -- Less: Amounts Written off (798) -- -- Less: Prior Period Errors -- -- (19 727) TOTAL 2 389 1 118 64 555

Fruitless, Wasteful and Irregular Expenditure Investigate fruitless, wasteful and irregular expenditure Determine whether losses were incurred as a result of theft Investigate whether compliance processes were adhered to or not Consider instituting accountability and consequence management processes Determine whether services were delivered or not

Thank You