1. Portfolio Committee on Labour 20 October 2005 Presented by: Mr. Joel Dikgole (CEO – W&RSETA)

2. OVERVIEW OF PRESENTATION W&R SETA PROFILE W&R SECTOR PROFILE NSDS 2001-2005 ACHIEVEMENTS OTHER ACHIEVEMENTS AFS & AUDIT RESULTS STRATEGIC PROJECTS KEY CHALLENGES 2005-2006

3. W&RSETA 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 Main Board Executive Committee FinanceAuditRemunerationProjects Core Functions JIPETQA

7. Labour COO SmmeL/ShipsSkillsIiP CFO FinanceProjectsITSCMHR Comms CEO PA ETQA PA Board Secretariat W&RSETA MGMT STRUCTURE HEAD OFFICE Regions

8. Organogram and Demographics

9. STAFF COMPLEMENT African =43Females = 32Males = 11 Whites = 7Females = 6Males = 1 Coloureds = 6Females = 4Males = 2 Indian = 3Females =1Males = 2

10. W&R SECTOR PROFILE STATISTICS COMPANIES REGISTERED COMPANIES PARTICIPATING CRITICAL SKILLS

11. W&R SECTOR PROFILE SEPTEMBER 2004 # EMPLOYED-2.5m RETAIL TRADE SALES -R352bn WHOLESALE TRADE-R485bn TOTAL SALES-R837bn Source: Stats in brief 2005-Statistic SA

12. Number of Companies Levy Paying Companies Including-R500 000 Threshold Small <50 employees-24k Medium 50-150 employees-664 Large 150 + employees-234

13. W&R SECTOR PROFILE CRITICAL & SCARCE SKILLS SUPPLY CHAIN MANAGERS MANAGERS RETAIL IT EXPERTS RETAIL TECHNICAL SKILLS FINANCE Source: SSP

14. 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  W&R 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  Accounting  Internal Audit  Credit Controller  Credit Clerks

15. REGISTERED VS PARTICIPATING ORGANISATIONS 5 year TREND REGISTERED ORGS – 17k TO 46k LEVYPAYING ORGS- 13K TO 24K WORKPLACE SKILLS PLANS – 564 TO 9,5k IMPLEMENTATION REPORTS - 287 TO 6k

16. 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.

17. Participating Organisations % Increase in participating companies Year 2001/2002Year 2002/2003Year 2003/2004Year 2004/2005 187% 563 to 1184 126% 1184 to 3478 99% 3478 to 8421 31.8% 8421 to 9545

18. Registered Organisations Per Region

19. Participating Organisations Per Region

20. Levy vs Grants paid Small (1-49) Category Category2000/20012001/20022002/20032003/20042004/2005 Levies Received32 142 65297 644 781126 088 529145154 237167 222 871 Grants Paid12 454 08141 586 17453 910 57765 935 22060 539 221

21. Levy vs Grants paid Medium (50-149) Category Category2000/20012001/20022002/20032003/20042004/2005 Levies Received2 987 4149 529 38113 644 92812 962 48915 675 515 Grants Paid610 6642 824 8684 082 5155 425 2804 981 718

22. Levy vs Grants paid Large (150+) Category Category2000/20012001/20022002/20032003/20042004/2005 Levies Received14 200 19341 973 30646 311 79865 761 00964 104 250 Grants Paid12 391 72536 899 01640 644 31648 225 32936 463 757

23. Levy Income vs Grants paid Total Per Category CategorySmallMediumLarge Levies Received568 m52m221m Grants Paid234m18m175m % Grants Paid41%34%79%

24. ANNUAL FINANCIAL STATEMENTS OVERVIEW OF FINANCES CASH & CASH EQUIVALENTS SURPLUS FUNDS STRATEGIC PROJECTS REPORT OF THE AUDITOR GENERAL MATTER OF EMPHASIS

25. REPORT OF AUDITOR GENERAL AUDIT OPINION: UNQUALIFIED EMPHASIS OF MATTER: RESUBMISSION OF FINANCIAL STATEMENTS

26. Finances-General Overview Actual2001-2005 R’000 Levy Income971m Invest Income75m Employer grants (46% of levy inc.) Projects Expenses 446m 231m Administration costs110m Available for Strategic Projects265m

27. W&RSETA – 5 year overview Information based on audited financial statements 20012002200320042005 PER YEARR’000 Levy income71 366163 247208 783241 970285 757 Invest Income6 57920 63026 45321 499 Mandatory Grants 25 24979 83483 078109 861147 763 Project expenses -15 86724 84832 813157 029 Administration expenses 16 40615 20921 71825 07131 817 Surplus/ (deficit) 26 35959 601101 275103 144(24 901)

28. Surplus funds - Overview 20012002200320042005 CUMULATIVER’000 Surplus funds available (A) 26 359101 827227 950363 907496 035 Surplus funds allocated (B) 091 26693 415223 070472 357 (B) as % of (A)090%41%61%95% Surplus funds spent (C) 015 86740 71573 528230 557 (C) as % of (B)017%44%33%49%

29. 2004/05 Information 2004/05 Annual Financial StatementsR’000 SDL Levy Income – 80%R285 757 Investment incomeR21 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 equivalentsR365 000

30. Cash and cash equivalents 2004/05 Annual Financial StatementsR’000 Cash and cash equivalentsR365 000 ADD: Assets, including levy receivables and fixed assetsR52 218 LESS: Current liabilities, including grants payable, accounts payables, accruals etc. (R151 740) Funds available for strategic projectsR265 478 LESS: Net allocation to projects (difference between total allocation and total expenditure) (R241 784) Unallocated fundsR23 694

31. Surplus funds - Overview 20012002200320042005 CUMMULATIVER’000 Surplus funds available (A) 26 359101 827227 950363 907496 035 Surplus funds allocated (B) 091 26693 415223 070472 357 (B) as % of (A)090%41%61%95% Surplus funds disbursed(C) 015 86740 71573 528230 557 (C) as % of (B)017%44%33%49%

32. STRATEGIC PROJECTS SETA FUNDED AMOUNT ALLOCATEDR472m AMOUNT DISBURSEDR230m

33. SETA SPONSORED STRATEGIC PROJECTS LearnershipsR217m Capacity Building for UnionsR 10m Qualifications (Dev.)R 7.5m I.S.D.F’SR 24m SMME’SR 24m ABET R 30m Assessor Training R 7m People Living with Disabilities R 30m

34. NSDS 2001-2005 ACHIEVEMENTS SCORECARD ACHIEVEMENTS BY OBJECTIVE OTHER ACHIEVEMENTS

35. DoL SCORECARD PERFORMANCE ASSESSMENT SUMMARY ScoreComment NSDS Targets5 Execllent perfomance levels achieved by the W&RSETA Governance and Management5 Execllent perfomance levels achieved by the W&RSETA Financial Management2.5 Execllent perfomance levels achieved by the W&RSETA Sector representation and Stakeholder SupportN/A Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted. Overall Score for SETA4.17

36. 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

37. Number of People Trained by Companies Total number of people trained = 337687

38. PROFILE OF SKILLS PROGRAMMES OFFERED BY ORGS TEAMWORK153,516 CUSTOMER RELATIONSHIP 58,679 PRODUCT KNOWLEDGE 26,416 AIDS 13,800 SALES 12,136

39. 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

40. 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

41. 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

42. 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

43. LEARNERSHIPS STATUS SETA Target Total Achieved Total Complete d Total In Progress Termination s 18.120001427671756 18.24000505714613260336 Total6000648421324016336

44. Learnership Achievements National Certificate: W&R Processes (NQF 2) National Certificate: W&R Sales and Service Technology (NQF 4) National Certificate: Certificate in Retail Operations Management (NQF 5) 18.162620738 18.210322846 Total165849144

45. STRATEGIC PROJECTS NSF FUNDED (R 000m) PROJECT RAVE AMOUNT ALLOCATEDR68m AMOUNT DISBURSEDR54m 18.2 LEARNERSHIP (unemployed) AMOUNT ALLOCATEDR50m AMOUNT DISBURSEDR38m

46. W&RSETA 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 practices3 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 Generalist2 Wholesale and Retail Specialist4 Wholesale and Retail Management 5

47. 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 W&RSETA qualifications 1421 Assessors Registered 125 Moderators Registered 2193 Certificates for Full Qualifications issued 2500 Record of Achievements in SMMEs 295 Learning Programmes approved

48. BEST PRACTICE SAQA Auditors congragulates : Qualifications Framework Balance Score Card IT Policies and Procedures

49. CHALLENGES Increase training and participation of SMME’S 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

50. 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

51. 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

52. 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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