1. Select Committees of Labour, Public Enterprises& Economic and Foreign Affairs 25 October 2005 Presented by: Mr. Joel Dikgole (CEO – W&RSETA)

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

3. W&RSETA PROFILE GOVERNANCE STRUCTURE MANAGEMENT STRUCTURE EMPLOYEE DEMOGRAPHICS

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. W&RSETA STAFF Demographics

9. W&RSETA STAFF COMPLEMENT RACEFEMALESMALES African =433211 Whites = 761 Coloureds = 642 Indian = 312 TOTAL=594316

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

11. W&R SECTOR PROFILE SEPTEMBER 2004 # EMPLOYED-2.5m RETAIL TRADE SALES -R352bn WHOLESALE TRADE-R485bn TOTAL SALES-R837bn GDP-R172bn Source: Stats in brief 2005-Statistic SA

12. 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

13. Registered 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.

14. Registered Organisations Per Region

15. Participating Organisations Per Region

16. 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

17. 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

18. 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

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

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

21. 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

22. ANNUAL FINANCIAL STATEMENTS REPORT OF THE AUDITOR GENERAL AFS 200/2005 CASH & CASH EQUIVALENTS 5 YEAR OVERVIEW STRATEGIC PROJECTS

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

24. 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

25. 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

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. 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%

30. 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

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

32. DoL SCORECARD PERFORMANCE ASSESSMENT SUMMARY ScoreComment NSDS Targets5 Excellent performance levels achieved by the W&RSETA Governance and Management5 Excellent performance levels achieved by the W&RSETA Financial Management2.5 Excellent performance 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 improvements submitted. Overall Score for SETA4.17

33. 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

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

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

36. 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

37. 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

38. 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

39. 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

40. LEARNERSHIPS STATUS SETA Target Total Achieved Total Completed Total In ProgressTerminations 18.120001427671756 18.24000505714613260336 Total6000648421324016336

41. 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

42. Learnership Participation Province In ProgressCompletedTOTAL 18.118.2TOTAL18.118.2TOTAL18.118.2TOTAL Eastern Cape7927235150153203129425554 Freestate155469834422388111 Gauteng4951185168028058486477517692544 KwaZulu Natal1286477751422133552708601130 Limpopo231081312412314747231278 Mpumalanga117226343257297142298440 North West49910317421 103124 Northern Cape112012117486518168186 Undefined42529262046304575 Western Cape8352460782210292165734899 TOTAL9493260420967114612132162047216341

43. W&RSETA QUALIFICATIONS 20 QUALIFICATIONS DEVELOPED 11 REGISTERED WITH SAQA & DoL - NQF Level National certificate: Retail shop floor practices 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

44. 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

45. National Training Provider Representation (Public, Private & Constituency ) Province PublicPrivateConstituentTotal Eastern Cape 8109 Gauteng 93113 KwaZulu-Natal 112114 Limpopo 7007 Mpumalanga 5005 North West 4004 Northern Cape 2002 Free State 5005 Western Cape 73111 National062733 Total581530103

46. National Assessor and Moderator Representation Province AssessorModerator Eastern Cape 15110 Gauteng 53664 KwaZulu-Natal 20321 Limpopo 250 Mpumalanga 111 North West 121 Northern Cape 1021 Free State 120 Western Cape 19821 Outside SA10 Freelance2656 Total1422124

47. BEST PRACTICE SAQA Auditors congratulates : Qualifications Framework Balance Score Card IT Policies and Procedures

48. 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

49. ?