Presentation on FP&M SETA Financial Performance for 2011/12 Annual General Meeting 28 September 2012

Achievements Established functional Finance, Supply Chain Management and Risk and Internal Audit divisions to – – oversee the financial and procurement operations of the FP&M SETA; – and to ensure adequate controls are in place to mitigate risks Successfully amalgamated the financial management systems of the former SETAs

Achievements Developed and implemented best practice financial policies and procedures Produced consolidated annual financial statements that fairly presented, in all material respects, the financial position of the FP&M SETA Met the legislated deadlines for the submission of quarterly and annual reports as specified by the DHET & Treasury

Achievements Disbursed – Discretionary grants totalling R36, 9 million; and – Mandatory grants totalling R93 million. Maintained administration costs below the legislated 10% (of SDL) threshold – Despite the costs relating to amalgamation process.

Challenges Merging 3 separate MIS and financial reporting systems into a fully functional consolidated system – Extended MIS contracts of former SETAs for 6 months – Merged systems onto an Interim MIS system to ensure functionality until new MIS system could be procured through a tender process.

Challenges Delineating MAPPP-SETA assets and liabilities – Between FP&M SETA, CATHSSETA and MICT SETA – Process was completed by the end of March 2012 and relevant projects and files were handed over to the relevant SETAs

Challenges Reporting on apprenticeships commitments inherited from MAPPP-SETA – AGSA not able to confirm the accuracy and completeness of the commitment – Issued a qualified audit opinion – FP&M SETA Board and staff have noted the findings with concern and have implemented measures to rectify the specific findings and to address the management of apprenticeship agreements in general during 2012/13.

Challenges Committing discretionary reserves by 31 March 2012 – Funding windows only advertised once amalgamation had been completed and essential committees and policies had been implemented. – Uncommitted discretionary reserves of MAPPP-SETA could not be allocated to new projects until the delineation of MAPPP-SETA had been completed.

Financial Information

Questions Thank you for your interest!