MAPPP-SETA Annual Report 2004/05 - Sector Profile and Achievements

1. MAPPP-SETAAnnual Report 2004/05

2. SETA Ambit • The MAPPP-SETA comprises a diverse range of sectors including: • Advertising • Arts and Culture • Film and Electronic Media • Printing and Packaging • Print Media • Publishing

3. MAPPP Profile • 66% are small companies employing between 5-49 people, and 28% are medium enterprises employing between 50 and 99 staff members. • A large proportion are freelancers, small or micro businesses. • Half of all the companies’ payrolls are between a half a million and five million. • Almost 40% of all companies under the ambit of the MAPPP-SETA are in Gauteng, Western Cape (28%) and KwaZulu-Natal (14%).

4. Occupational Profile • The bulk of employees in the MAPPP SETA are Clerks closely followed by Plant and Machine Operators and Assemblers, Service and Sales Workers, Elementary Occupations and Technicians and Associate Professionals.

5. SETA Staff Profile

6. SETA Staff Profile • The SETA has 28 full time staff, 45% of whom are black South Africans and 68% are women. • The SETA has three offices providing regional representation across the country. These offices are based in Gauteng, KZN and the Western Cape.

7. NSDS Achievements • Indicator 1.1 – No. of workers at NQF level 1 • The SETA targeted 76% of workers and achieved 100% of the goal. • Indicator 1.2 – No. of workers in structured learning programmes • The SETA targeted 20% of workers and achieved 127% of the goal. • Indicator 1.3 – No. of enterprises to have achieved national standard of people development • Given the lack of an agreed national standard the SETA made no progress in this regard.

8. NSDS Achievements • Indicator 2.1 – No. of large enterprises receiving grants • The SETA targeted 100% of large enterprises and achieved 100% of the goal. • Indicator 2.2 – No. of medium enterprises receiving grants • The SETA targeted 40% of medium enterprises and exceed this by supporting 54% of medium enterprises. • Indicator 2.3 – No. of learnerships available • The SETA targeted 58 learnerships and registered 43 (74%).

9. NSDS Achievements • Indicator 3.1 – No. of small enterprises receiving support • The SETA targeted 800 (20%) of small enterprises and achieved supported 500 (63%) of the goal. • Indicator 5.1 – No. of unemployed youth in structured learning programmes • The SETA targeted 1 185 youth people and successfully registered over 4 600.

10. AUTHORITY REPORT • Areas of concern - Forensic audit report - Internal audit report - SAQA report - Management information system - Other non-compliance issues

11. AUTHORITY REPORT • Corrective measures taken - Discretionary grants * Instructed legal council to provide legal opinion * Forensic audit report handed to the National Prosecuting Authority (NPA) for further investigation and action * Non complying payments discontinued * Guidelines revised and approved - SAQA report * Required policies and procedures approved and implemented * Capacitating staff and role-players regarding requirements * Ensure compliance with SAQA requirements

12. AUTHORITY REPORT • Corrective measures taken - Discretionary grants * Instructed legal council to provide legal opinion * Forensic audit report handed to the National Prosecuting Authority (NPA) for further investigation and action * Non complying payments discontinued * Guidelines revised and approved - SAQA report * Required policies and procedures approved and implemented * Capacitating staff and role-players regarding requirements * Ensure compliance with SAQA requirements

13. AUTHORITY REPORT • Corrective measures taken - Internal audit report * Consolidated management comments - Management Information System * Bid awarded for development and implementation of a MIS that are being implemented - Audit Committee * Established, based on approved TOR - Investment policy * Approved, based on Treasury Regulations

14. AUTHORITY REPORT • Future plans - Comply with legislative framework - Align services to the needs of the sectors and the stakeholders - Learnerships and other training programmes implementation - Develop SMME and BBBEE - Develop and review SAQA registered qualifications across all sub-sectors

15. AUTHORITY REPORT • Future plans - Accredit training providers - Capacitate lead providers - Assist non-levy paying members - Establish centres of excellence - Create sustainable joint ventures - Form close alliances with youth and community-based organizations

16. INCOME STATEMENT (R’million) 20052004 REVENUE Levy income 107 128 Investment income 9 8 NSF income 42 28 Other income 2 - Total revenue 160164

17. INCOME STATEMENT (R’million) 20052004 EXPENDITURE Grants 72 65 Admin expenses 13 11 NSF expenses 42 28 Other expenses 1 - Total expenditure128104

18. STATISTICS 20052004 SURPLUS (R’m) 32 60 CASH AND CASH EQUIVALENTS (R’m)147 131 Expenses/SDL income (%) 86 67

19. BALANCE SHEET (R’million) 20052004 ASSETS Equipment 1 1 Levy debtors 29 36 NSF debtors 33 - Other debtors 3 (3) Cash at bank 146131 Total assets212165

20. BALANCE SHEET (R’million) 20052004 EQUITY AND LIABILITIES Reserves 124 97 Provisions 58 52 NSF in advance 25 15 Other liabilities 5 1 Total equity and liabilities212165

21. AG REPORT Qualification Provision for grant disbursements amounting to R56 million could not be substantiated, as no verifiable supporting documentation could be provided to the Auditor-General, due to the fact that the previous CFO, who made the provision, resigned during the audit.

22. AG REPORT Emphasis of matter 1. Subsidy grant payments * Number of learners was not specified on supporting documentation as agreed with a training provider 2. No Audit Committee 3. Special investigation * Alleged irregular payments in respect of discretionary grant disbursements being investigated 4. Internal control * A database was not maintained to evaluate completeness of income received from SARS via Department of Labour

23. COMMITTED FUNDS AND PROJECTS (R’million) 20052004 CASH AND CASH EQUIVALENTS 147131 Mandatory grant provision 87 66 Discretionary grant provision 25 20 NSF project 25 36 Administration reserve 7 6 Capitalisation reserve 3 3 TOTAL COMMITMENTS 147131

24. Factors Impacting on Delivery • Internal restructuring of the SETA to align services with sector needs. • A change in senior management with the appointment of a new CEO. • The review of the SETA landscape which halted major projects such as the implementation of the Management Information System (MIS).

25. Key Challenges for 2006/07 • To identify and address critical skills and occupational skills needs and address employment equity and BBBEE issues in the sector. • Obtaining additional training resources from DoL and the NSF. • To consult all industries on their needs. • To train Assessors, Learning Material Designers, Moderators and Facilitators for all providers. • To phase out all “legacy qualifications” that are not aligned to the NQF for example Apprenticeships. • To develop a wide range of learnerships and skills programmes for all the sectors. • To provide capacity building for all providers and workplaces towards implementing the NQF system. • To ensure quality training in the sectors.