FP&M SETA 2011/12 Performance

1. FP&M SETA 2011/12 Performance Annual General Meeting: 28 September 2012

2. Introduction • Background • 2011/12 Highlights • 2011/12 Performance • Challenges

3. Background • Minister of HET announcement in November 2010 • Amalgamation of 3 SETAs

4. Background • FP&M SETA was established from 1 April 2011 to 31 March 2016 to provide skills development services to the following fibre processing and manufacturing sub-sectors: • Clothing, Footwear, Forestry, Furniture, General Goods, Leather, Packaging, Print Media, Printing, Publishing, Pulp and Paper, Textiles and Wood Products

5. Background • Interim Board and Constitution – 1 April 2011 – 30 September 2011 • Constitution based on standard SETA constitution in place from 1 October 2011 • Permanent Board appointed by Minister of HET: • Ministerial appointees (3) including Independent Chairperson • 6 organised employer representatives • 6 organised labour representatives • Functional Committees established • SETA Organisational structure established

6. Highlights • Completed structural amalgamation • Implemented new organisational structure successfully • Complied with statutory requirements and national skills development deadlines • Implemented sound financial and corporate governance policies and procedures • Complied with mandatory grant requirements for 2011/12 • 55% of mandatory grant income disbursed • Allocated discretionary grant funding to key priority areas • R111 million allocated

7. Highlights • Focused discretionary grant funding on skills development • In rural areas; • Targeting designated groups (youth, women, persons living with disabilities; and • To address scarce and critical skills needs in the FP&M sector • Broadened stakeholder consultation • Regular regional workshops and focused strategic discussions • Active participation by employer and labour organisations in SETA strategic planning processes (SSP development)

8. Performance: 2011/12

9. Performance: 2011/12

10. Performance: 2011/12

11. Performance: 2011/12

12. Performance: 2011/12

13. Performance: 2011/12

14. Performance: 2011/12

15. Performance: 2011/12

16. Performance: 2011/12

17. Performance: 2011/12

18. Performance: 2011/12

19. Performance: 2011/12

20. Performance: 2011/12

21. Performance: 2011/12

22. Challenges • Integration of business cultures and processes • Management of historical projects • Audit finding relating to management of apprenticeship agreements • Under-performance on certain targets • Under-spending on discretionary projects • Inadequate Internal Audit Function • Risk assessment not conducted

23. Challenges • Sector Skills Planning and Research constraints • Lack of comprehensive baseline information • Lack of industrial strategies (in certain sub-sectors) • Sub-sectoral priorities vs FP&M sector priorities

24. Questions Thank you for your interest!