Presentation on FPM SETA Financial Performance for 201112

Presentation on FP&M SETA Financial Performance for 2011/12 Annual General Meeting 28 September 2012

Achievements • Established functional Finance, Supply Chain Management and Risk and Internal Audit divisions to – – oversee the financial and procurement operations of the FP&M SETA; – and to ensure adequate controls are in place to mitigate risks • Successfully amalgamated the financial management systems of the former SETAs

Achievements • Developed and implemented best practice financial policies and procedures • Produced consolidated annual financial statements that fairly presented, in all material respects, the financial position of the FP&M SETA • Met the legislated deadlines for the submission of quarterly and annual reports as specified by the DHET & Treasury

Achievements • Disbursed – Discretionary grants totalling R 36, 9 million; and – Mandatory grants totalling R 93 million. • Maintained administration costs below the legislated 10% (of SDL) threshold – Despite the costs relating to amalgamation process.

Challenges • Merging 3 separate MIS and financial reporting systems into a fully functional consolidated system – Extended MIS contracts of former SETAs for 6 months – Merged systems onto an Interim MIS system to ensure functionality until new MIS system could be procured through a tender process.

Challenges • Delineating MAPPP-SETA assets and liabilities – Between FP&M SETA, CATHSSETA and MICT SETA – Process was completed by the end of March 2012 and relevant projects and files were handed over to the relevant SETAs

Challenges • Reporting on apprenticeships commitments inherited from MAPPP-SETA – AGSA not able to confirm the accuracy and completeness of the commitment – Issued a qualified audit opinion – FP&M SETA Board and staff have noted the findings with concern and have implemented measures to rectify the specific findings and to address the management of apprenticeship agreements in general during 2012/13.

Challenges • Committing discretionary reserves by 31 March 2012 – Funding windows only advertised once amalgamation had been completed and essential committees and policies had been implemented. – Uncommitted discretionary reserves of MAPPPSETA could not be allocated to new projects until the delineation of MAPPP-SETA had been completed.

Financial Information REVENUE EXCLUDING DONOR FUNDING R 18 664 R 35 987 R 65 448 ADMINISTRATION INCOME MANDATORY GRANT INCOME DISCRETIONARY GRANT INCOME INVESTMENT INCOME R 173 195

Financial Information DONOR FUNDING - Income matched to amount spent in 2011/12 R 637 KZN DEPT OF ECONOMIC DEVELOPMENT AND TOURISM R 1 247 NATIONAL SKILLS FUND INCOME R 2 881 GOVERNMENT GRANTS AND DONOR FUNDING R 3 317 W&R SETA JOINT COLLABORATION PROJECT R 112 R 2 691 R 770 TRAINING LAYOFF SCHEME -UIF TRAINING LAYOFF SCHEME -W&R SETA TRAINING LAYOFF SCHEME -DHET

Financial Information EXPENSES R 36 969 R 31 062 ADMINISTRATION EXPENSES MANDATORY GRANT EXPENSES DISCRETIONARY EXPENSES R 93 419

Financial Information DISCRETIONARY RESERVES COMMITTED R 102 185 TOTAL DISCRETIONARY FUNDS COMMITTED FUNDS R 359 544

Questions Thank you for your interest!