MAPPPSETA Annual Report 200405 SETA Ambit The MAPPPSETA

MAPPP-SETA Annual Report 2004/05

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

MAPPP Profile • 66% are small companies employing between 549 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 Kwa. Zulu-Natal (14%).

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.

SETA Staff Profile CEO Create. SA NSF Project ETQA Manager Financial Administration Manager 6 x ETQA Monitoring Officers Accountant 5 X ETQA Liaison Clerks Personal Assistant Skills Development Manager 3 x Skills Development Advisors IT Co-ordinator Receptionist Housekeeper 2 x Cash Grant Levy Administration 4 x Chamber Managers 3 x Learnership Admin & Design

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.

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.

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%).

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.

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

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

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

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

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

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

INCOME STATEMENT (R’million) REVENUE Levy income Investment income NSF income Other income Total revenue 2005 2004 107 9 42 2 160 128 8 28 164

INCOME STATEMENT (R’million) EXPENDITURE Grants Admin expenses NSF expenses Other expenses Total expenditure 2005 2004 72 13 42 1 128 65 11 28 104

STATISTICS SURPLUS (R’m) CASH AND CASH EQUIVALENTS (R’m) Expenses/SDL income (%) 2005 2004 32 60 147 131 86 67

BALANCE SHEET (R’million) ASSETS Equipment Levy debtors NSF debtors Other debtors Cash at bank Total assets 2005 2004 1 29 33 3 146 212 1 36 (3) 131 165

BALANCE SHEET (R’million) EQUITY AND LIABILITIES Reserves Provisions NSF in advance Other liabilities Total equity and liabilities 2005 2004 124 58 25 5 212 97 52 15 1 165

AG REPORT Qualification Provision for grant disbursements amounting to R 56 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.

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

COMMITTED FUNDS AND PROJECTS (R’million) 2005 2004 CASH AND CASH EQUIVALENTS 147 Mandatory grant provision 87 Discretionary grant provision 25 NSF project 25 Administration reserve 7 Capitalisation reserve 3 TOTAL COMMITMENTS 147 131 66 20 36 6 3 131

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).

Key Challenges for 2006/07 1. To identify and address critical skills and occupational skills needs and address employment equity and BBBEE issues in the sector. 2. Obtaining additional training resources from Do. L and the NSF. 3. To consult all industries on their needs. 4. To train Assessors, Learning Material Designers, Moderators and Facilitators for all providers. 5. To phase out all “legacy qualifications” that are not aligned to the NQF for example Apprenticeships. 6. To develop a wide range of learnerships and skills programmes for all the sectors. 7. To provide capacity building for all providers and workplaces towards implementing the NQF system. 8. To ensure quality training in the sectors.