1. 1 WELCOME Back Isett Seta Annual General Meeting 31 March 2006 Mr. Oupa Mopaki Chief Executive Officer

2. 2INTRODUCTION The presentation today will provide insight into the performance and achievements of the Isett Seta for the financial year 2004 – 2005. It will outline the following:

3. 3 PRESENTATION OUTLINE NSDSNSDS 2001 – 2005 ACHIEVEMENTS SECTORSECTOR SKILL PLANNING (SSP) LEARNERSHIPSLEARNERSHIPS EDUCATIONEDUCATION AND TRAINING QUALITY ASSURANCE (ETQA) MARKETINGMARKETING & COMMUNICATIONS RURALRURAL ACCESS PARTNERSHIPSPARTNERSHIPS FINANCIALSFINANCIALS CHALLENGESCHALLENGES SLIDE NUMBER SLIDE NUMBER: 3 4 5 6 7 8 9 10 11 12 13 14 153456789101112131415

4. 4 NSDS 2001 – 2005 ACHIEVEMENTS Indicator 1.1 – Number of Workers at NQF 1 –As at March 2005, 95% (baseline = 201,400) of employees in the Isett sector had a qualification higher than NQF Level 1 on the National Qualifications Framework. Indicator 1.2 – Number of workers on structured learning programmes –As at March 2005, 63% (127,675) of employees in the Isett sector had been scheduled for structured skills development programmes. WSPIRs were due on the 30 th April 2005. Indicator 1.3 – Number of enterprises that achieved National Standard of People Development –As at March 2005, 13 enterprises have committed and were starting to implement Investors In People (IIP). Only one enterprise had already achieved the Standard. Back

5. 5 NSDS 2001 – 2005 ACHIEVEMENTS Indicator 2.1 – Number of large enterprises that received skills development grants –As at March 2005, 104 enterprises with more than 150 employees were claiming grants. This represents 100% participation. Indicator 2.2 – Number of medium enterprises that received skills development grants –As at March 2005, 152 enterprises in the Isett sector employing between 50 and 149 employees were claiming grants. This represents 100% participation. Indicator 2.3 – Number of Learnership Qualifications available to workers in sector –As at March 2005, 15 Learnership Qualifications were registered and made available across the Isett sector. Back

6. 6 NSDS 2001 – 2005 ACHIEVEMENTS Indicator 3.1 – Number of small enterprises that received skills development support –As at March 2005, 4.5% of companies with 1-49 employees are participating in the Skills Development Initiatives. Large businesses were encouraged to assist small businesses with skills development as well. Indicator 5.1 – Number of unemployed young people that entered Learnerships –As at March 2005, 6 731 Learners, of which 6395 were under the age of 30, have entered Isett Seta funded Learnerships and 1 546 have completed those Learnerships. Number of learners on Learnerships that were placed in employment –As at March 2005, 1,546 of Learners have completed Learnerships while 894 have been permanently placed, and 600 are studying further, 52 unemployed. Back

7. 7 SECTOR SKILLS PLANNING (SSP)

8. 8 LEVY PAYING COMPANIES BY SIZE COMPANY SIZECOMPANIESTOTAL % 1 - 49435794.5% 50 - 1491523.3% 150+1042.2% Total4613100.0% Source: On-line Grant System Back

9. 9 EMPLOYEES BY COMPANY SIZE TOTAL EMPLOYEES COMPANY SIZEPOPULATION% OF TOTAL 1 - 4950, 45623.8% 50 - 14923,10810.9% >150138, 43665.3% TOTAL212, 000100.0% Source: SSP Document (based on findings in SAITIS Study) Back

10. 10 COMPANY PARTICIPATION Company Size Levy Paying # Supported % Participation 1 - 4943571964,5% 50 - 149152 100% 150+104 100% Source: On-line Grant System and Project records

11. 11 EMPLOYEE PROFILE Source: ICT Skills Audit

12. 12 SCARCE SKILLS Description/category of scarcity identified Related occupation Projected need over next 2 years Learning programme to address scarcity 1.IT Technical Support (Hardware and Networking) 2.IT System Development (Software Development incl. database) Physical and Engineering Science Technicians 316 369 (Isett and Non- Isett) Isett = 116 659 Non-Isett=199 710 Skills programmes, internships and learnerships 3. Telecommunication Technology 4. Electronics (Dev. and Maintenance) Electrical and Electronic equipments mechanics and fitters 181 550 (Isett and Non- Isett) Isett = 68 296 Non-Isett=113 254 Skills programmes, internships and learnerships Back Source: ICT Skills Audit

13. 13 SCARCE SKILLS - Cont. 5. Project ManagementProject Management 2 232 (Isett & Non-Isett) Isett = 1 100 Non-Isett =1 132 Skills programmes and learnerships 6. Venture Creation (Entrepreneurship) Business Professionals 1 648 (Isett & Non-Isett) Isett = 565 Non-Isett =1 083 Skills programmes and learnerships 7. End User ComputingAdministrative Support Staff 4 048 (Isett & Non-Isett) Isett =1 123 Non-Isett =2 925 Short course Source: ICT Skills Audit

14. 14 LEARNERSHIP

15. 15 LEARNERSHIP HIGHLIGHTS Target of 3 500 achieved and exceeded by 192% (3 231) 6 731 learners in Learnership Programmes (90% are 18.2 under 30 years) –23% have successfully completed, of which 58% are Employed or Self-employed –99.2% are Black, 43.1% Female, while 5.4% are people with Disabilities –R222 million invested towards implementation

16. 16 BENEFICIARIES 6,731

17. 17 HIGH LEVEL ICT SKILLS Target BSc graduates 470 learners trained in high level skills (Internships) –57% completed training and have graduated, of which most are employed with various companies –43% are in progress –93% are Black, 44% Female

18. 18 EDUCATION & TRAINING QUALITY ASSURANCE (ETQA)

19. 19 REGISTERED QUALIFICATIONS Title of Qualification NQF Level Number of Credits National Certificate: Telecommunications for Customer Premises Equipment2120 National Certificate in Telecommunications for Customer Premises Equipment 3135 National Certificate: Telecommunications for Customer Premises Equipment4152 National Certificate: Information Technology: Technical Support4163

20. 20 REGISTERED QUALIFICATIONS Cont. Title of Qualification NQF Level Number of Credits National Certificate: Information Technology: Systems Development4178 National Certificate: Information Technology: Systems Support5147 Masters Degree in Engineering – Telecommunications Engineering7180 Masters Degree in Engineering - Information Engineering7180

21. 21 ACCREDITATION CategoryDescriptionNumber Of SMME Accredited Training Providers BEE Status Full Accreditation Provisional Accreditation AfricanWhite 1 - 49Small & Micro 167 914 50 -149Medium22 22 150+Large10 1 Total199 There were 450 applicants assisted to acquire accreditation

22. 22 ASSESSORS & MODERATORS Assessors GenderRace MaleFemaleAfricanIndianColouredWhite 3519761724 Total 54

23. 23 ASSESSORS & MODERATORS Moderators GenderRace MaleFemaleAfricanWhiteColouredIndian 33-411 Total 6

24. 24 MARKETING & COMMUNICATIONS

25. 25 MARKETING & COMMUNICATIONS Events –Road Shows –Exhibitions Graduations Media Releases (Print & Visual) Publications & Broachers Website

26. 26 RURAL ACCESS To ensure rural coverage, the following Learnerships projects have been implemented: Limpopo (Mogalakwena i-Community Presidential Project) Free State (Qwaqwa FET Colleges) North West (Klerksdorp, Rustenburg) Northern Cape (Upington, Kimberley) Other Projects: Train the trainer IT Facilitator programme (Limpopo, North West, Mpumalanga, Northern Cape and Free State)

27. 27 PARTNERSHIPS Mpumalanga Provincial Government (Premier’s Office) North West Provincial Government (Premier’s Office) Free State Provincial Government (Premier’s Office) Eastern Cape Provincial Government (Premier’s Office) Gauteng Provincial Government (Premier’s Office) KwaZulu Natal Provincial Government (Smart Exchange) Limpopo Provincial Government and Hewlett Packard State IT Agency (National) Department of Public Works (Expanded Public Works Programme)

28. 28 FINANCIALS

29. 29 ANNUAL FINANCIALS & AUDIT RESULTS Back ItemR’000 SDL IncomeR210,345 Total Investment IncomeR16,395 Total revenueR265,981 Total ExpensesR245,313 Expenses as Percent of SDL Income =99% Net surplus / (deficit)R20,668 Total Cash & Cash EquivalentsR168,615

30. 30 COMMITTED FUNDS AND PROJECTS The funds will be utilised as follows: –R100.000m will be used for Grant payments. –R68.615m will be used for Learnerships commitments. Back

31. 31 ANNUAL FINANCIALS & AUDIT RESULTS Back FINDINGSACTION PLANDUE DATES Treatment of VAT We have requested an extension of two months from SARS for the final submission of the Vat. The extension is from 30 September 2005 to 30 November 2005.A firm of consultants was engaged to look at the entire VAT treatment of the Grants system from the inception of the Isett to date 30 th November 2005 Unrecorded Liabilities We have put in place the discipline of closing off the system and cutting off properly to the next period. 30 th November 2005 Grant Overpayment We will put in place a process that will ensure that the completeness of revenue is assured on a monthly basis. 30 th November 2005 The final audit report is a disclaimer of opinion report. The major issues that brought about this disclaimer are:

32. 32 ANNUAL FINANCIALS & AUDIT RESULTS Cont. FINDINGSACTION PLANDUE DATES Fundamental Error We will ensure full compliance with AC111 on Revenue recognition. Whereas previously revenue was accounted for on a cash basis we have now switched to the accrual basis of recognition. 30 th November 2005 NSF Projects. A separate set of general ledger accounts has been set up in order to account for NSF projects separately from Isett accounts. Thus all SLA’s signed with the vendors will now distinguish between the Isett and the NSF obligations and payments will be split accordingly between the two. 30 th November 2005 Opening Balances The discipline has already been put in place to close off the system (Great Plains) every month and do proper cut-offs from month to month. 30 th November 2005 Fixed Assets Fixed Assets register will be updated to ensure full compliance with Companies Act and PFMA 30 th November 2005 NB: The Isett Seta Performance Management System is also utilized to address the findings.

33. 33 Status on AG’s Audit Report

34. 34 KEY CHALLENGES FOR 2005 - 2006 Funding for progressing all learners from NQF level 4 to 5 Implementation of ICT Learnerships in far rural areas Acquiring more funding from the NSF Financial constraints in establishing offices in all provinces (DoL initiative, SITA partnership) Achieving a clean audit Back

35. 35 THANK YOU!! Please visit our website: http://www.isett.org.za/