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1
Contents
Sections Pages
1. Chairman’s Report 2
2. Staffi ng Structure 4
3. Governance 6
4. Achievements / Targets 4.1 Levy and Grant Disbursement 114.2 Discretionary Grants 124.3 National Skills Fund (NSF) 204.4 ETQA /QMS / Learnership 264.5 SMME’s – ABET / HIV 294.6 Service Providers / Consultants 30
5. Performance Outcomes and Constraints 31
6. Marketing and Communication 34
7. Audit Committee Report 35
8. Financial Statements 37
9. Thanks 67
10. Contact Details 68
2
1. Chairman’s Report I am proud to announce that SETASA’s performance increased exponentially during the past fi nancial year resulting in the SETA emerging as one of the top performers.
Building on the strengths and successes, we are able to refl ect a number of key achievements in relation to the Sector Skills Plan and the targets set for the priorities:
• The number of learners in structured learning programmes exceeded expectations by almost 36%• On average 78% of the companies with 150+ employees received grants against the target of 80%, while the target for grants received by companies employing between 50 and 150 employees was maintained • Triple the number of Learnerships were registered against the objective originally set• To date 80% of the target set for SMME’s has been achieved• The Learnerships available to 18.2 learners under 30 will be achieved with an oversubscription in excess of 327% being recorded for participation• ABET programmes are well received by the stakeholders with achievements not only on target, but are likely to be exceeded• HIV / Aids programmes have been presented nationally, with many employers showing their commitment by instituting initiatives to create continuous awareness • The initial Discretionary Grant allocation funded Skills Development initiatives for 10 835 learners, which included 845 learners on Learnerships, 664 learners on ABET programmes, 8 651 employees on HIV/Aids awareness programmes and 703 learners placed in capacity building initiatives.• The National Skills Fund has performed well and has exceeded goals set, especially with regard to the training of SMME’s• Baseline work for the ETQA has been completed and a favourable audit report was received from SAQA
The funding available under the National Skills Fund was allocated to the following projects:• Export Readiness, including - a successful skills programme to train South African sheep shearers and classifi ers - programmes training learners on the requirements and importance of HACCP and GMP, specifi cally with the view to increasing exports - research by the Fruit Packaging and Processing sector into the skills required by the industry to promote quality assurance • SMME Learnerships• A Cross Functional Skilling programme specifi cally in the Sugar industry• A successful Bursary Scheme and • A national ABET programme
SETASA has been privileged to receive the support of industry associations such as the Chamber of Milling, South African Poultry Association (SAPA), Red Meat Abattoir Association (RMAA), South African Sugar Asociation (SASA) in promoting the goals of Skills Development amongst their members. I am positive that this has contributed in part to the increase we have experienced in the submission of Workplace Skills Planning Grants.
During the year we conducted national roadshows to market SETASA to the stakeholders. The feedback received was extremely positive and further workshops are planned where more specifi c and meaningful interaction with stakeholders will be included.
During this fi nancial year, a new fi nancial management system was instituted, resulting in payments being effected within a shorter period.
Corporate Governance has remained a strong focus and the Executive Committee and the Governing Body of SETASA continue to operate according to the stringent principles laid down. This resulted in SETASA receiving an unqualifi ed audit report, after the fruitless and wasteful expenditure case experienced during the previous fi nancial period. As this case is sub judice, no further details can be reported.
3
Mr Gerald Leith who resigned in April 2003, received a basic income of R33 125, other allowance of R1 200, travel allowance of R10 000 and leave pay amounting to R43 399. An Acting Chief Executive Offi cer was employed for the period November 2003 until March 2004, receiving a basic income of R201 937 a travel allowance of R65 812 and a performance bonus of R47 250.
The future holds many challenges. In the short term, we are aware of those priorities that require our attention and have put plans and procedures in place to ensure delivery. In the longer term, we have identifi ed those aspects that need to be addressed, and have assigned priority status to guarantee that they are successfully completed.
On behalf of the Executive Committee and the Governing Body, I would like to thank the SETASA staff for their outstanding performance and commitment to achieving, and in some instances exceeding, our sector priorities.
Thanks go to the SETASA stakeholders who have pledged their support to the SETA and who have assisted SETASA in reaching the targets set.
My gratitude, and that of the Executive Committee and the Governing Body, must go to Dr Gerhard Neethling and Dr Julie Reddy for their tireless efforts in managing the SETA. Their success has paved the way for the appointment of a CEO who can ensure that the momentum they created can be continued.
Tribute must go to the Department of Labour, the Offi ce of the Auditor-General, to members of SETASA’s Governing Body and committees for their support in achieving the sector priorities and for their dedication to the management of SETASA.
LW HansenChairman
4
Structural Organogram
2. Staffi ng Structure
5
Package Range Employees African White Coloured
Male Female Male Female Male Female
Below R100 000 2 1 1
R101 000 – R200 000 1 1
R201 000 – R300 000 6 1 1 1 3
R301 000 – R400 000 1 1
Name Gender Race
A.M. Labuscagne Female WhiteC.S. Cleinwerck Female ColouredG.I. Welgemoed Female WhiteH.F. Luthuli Male AfricanM. Hoffman Female WhiteM.B. Meko Male AfricanM.E. Mathelemusa Female AfricanM.S. Fredericks Male ColouredR.E. Thulare Female African
Staff Breakdown
Theuns Henning, Redawaan Hendricks, Mpho Mathelumusa, Caren Cleinwerck, Shaafi g Fredericks, Gisela Welgemoed, Annetjie Labuscagne, Julie Reddy & Fano Luthuli.
6
Employee Organisation Member Name Gender Race SSU Representation
1. Solidarity AWH Marais Male White Seed, Pest Control &
Milling
2. SAFATU A Msiza Male African Tobacco & Grain
3. FAWU BB Stemmet(Vice Chairman)
Male Coloured Fruit
4. FAWU L Nzuza Male African Sugar
5. FAWU QD Gwala Male African Poultry
6. Solidarity J Janse van Rensburg
Male White Fibre & Red Meat
Mr AWH Marais of Solidarity, holds 3 votes, as he is the Chairman of Milling and the Vice Chairman of the sub sectors, Seed and Pest Control.
Mr A Msiza of SAFATU, holds 2 votes, as he is the Chairman of Grain and Vice Chairman of the Tobacco Sub Sector.
Mr Janse van Rensburg of Solidarity, holds 2 votes, as he is the Vice Chairman of Fibre/Tea/Coffee & Red Meat.
Governing Body
3. Governance
7
Employer Organisation Member Name Gender Race SSU Representation
1. Vrystaat Koöperasie Beperk (VKB) AW Gerritzen Male White Grain
2. BKB Ltd CS Van Graan Male White Fibre/Tea/Coffee
3. Pannar Seed Pty Ltd GF Nefdt Male White Seed
4. Red Meat Abattoir Association GC Neethling Male White Red Meat
5. Specialists Holding Pty Ltd HR Pottas Male White Pest Control
6. Dickon Hall Products Pty Ltd J Bezuidenhout Male White Fruit
7. Astral Operations LtdLW Hansen (Chairman)
Male White Milling
8. Tongaat Huletts Sugar MM Kumalo Male African Sugar
9. Rainbow Farms Pty Ltd N Moodley Female Indian Poultry
10. Swedish Match W Sithole Male African Tobacco
White African Coloured Indian
M F M F M F M F
Employer 7 0 2 0 0 0 0 1
Employee 2 0 3 0 1 0 0 0
Total 9 0 5 0 1 0 0 1
Total 16
8
Governing Body Meetings: 2003/04
Date Attendance Apologies Total
Employee Party
Employer Party
Employee Party
Employer Party
April 17, 2003 8 8 2 2 20
July 16, 2003 9 6 1 4 20
August 25, 2003 9 8 1 2 20
September 19, 2003 4 7 6 3 20
October 28, 2003 7 7 3 3 20
November 26, 2003 3 5 7 5 20
February 13, 2004 8 9 2 1 20
March 12, 2004 9 6 1 4 20
9
Date Attendance Apologies Total Members
Employee Party
Employer Party
Employee Party
Employer Party
April 23, 2003 1 1 1 1 4
LW Hansen -Astral Operations Ltd(Chairman)BB Stemmet -FAWU(Vice Chairman)QD Gwala -FAWUN Moodley -Rainbow Farms Pty Ltd
29 May, 2003 2 1 1 4
July 8,2003 2 1 1 4
July 16, 2003 2 1 1 4
September 10, 2003 2 2 4
October 22, 2003 2 2 4
November 26, 2003 1 2 1 4
January 12, 2004 2 1 1 4
February 18, 2004 1 2 1 4
Executive Committee Meetings
Date Attendance Apologies Total Members
Employee Party
Employer Party
Employee Party
Employer Party
June 5, 2003 2 2 4 AW Gerrtizen -Vrystaat Koöperasie BeperkBB Stemmet - FAWUD Lane - FAWULW Hansen - Astral Operations Ltd
July 24, 2003 2 2 4
Date Attendance Apologies Total Members
Employee Party
Employer Party
Employee Party
Employer Party
November 21, 2003 1 1 1 1 4
J Bezuidenhout - Dickon Hall Products (Pty) LtdP Johnson - FAWUQD Gwala -FAWUW Sithole - Swedish Match
Remuneration Committee Meetings
Procurement Committee Meeting
10
Date Attendance Total Members
External Party
Employee Party Employer Party
April 14, 2003 1 1 1 3 Prof. D Scott -UNISA(Chairman) MM Kumalo-Tongaat HulettsSugarA Msiza -SAFATUJ Janse Van Rensburg- SolidarityJ Van Niekerk -Earlybird Farm
May 28, 2003 1 1 1 3
Feb 4, 2004 1 2 2 5
Feb 23, 2004 1 2 1 4
Disciplinary Hearing: Mr GW Leith
The disciplinary hearing commenced on 3 April 2003 and continued on 4, 7 and 11 April 2003. The hearing was chaired by Advocate A Freund of the Johannesburg Bar, appointed by AFSA as instructed by the Governing Body.
Mr P Bam was the attorney presenting the case on behalf of SETASA and Mr N Arnold of the trade union Solidarity MWU represented Mr Leith. Mr L Marais in his capacity as the internal auditor of SETASA was called as a witness.
At the conclusion of the hearing on 11 April 2003, the Chaiman suggested that Mr Leith give his evidence. The hearing continued on 24 April 2003. The hearing ended abruptly on 24 April 2003 when, shortly after Mr Leith had started to give evidence, he and his representative approached Mr Bam with the request to resign with a package.
Mr Leith was informed that the Governing Body would not be prepared to pay a package, but if he resigned with immediate effect and unconditionally the Governing Body would accept his resignation, without prejudice to any other rights the Governing Body might have. Mr Leith then resigned with immediate effect.
The Governing Body decided to put a process in place to recover the material losses and a letter of demand to this effect was addressed to Mr Leith.
The following are in process:
Civil ClaimThe Governing Body instructed Mr Bam to lodge a civil claim against Mr Leith based on alleged misappropriation of funds and damages caused to SETASA.
Criminal ChargesThe report of the Forensic Auditors of the offi ce of the Auditor-General was handed to the Scorpions for further investigation.
During this reporting period no outcome was received on the civil case or on the investigation done by the Scorpions.
Audit Committee Meetings
11
4. Achievements and Targets
4.1 Levy and Grant Disbursements
Mandatory Grants
During the past year the levy paying employers varied between 1300 and 1600.The SETA received 445 Workplace Skills Planning Grant (WSPG) applications compared to 373 for the 2002/2003 fi nancial year in the following categories:
Employers with 150 and more employees:* Target 85% for 135 applications Achieved 78% as 123 applications were received for the fi nancial year 2003/2004 compared to the 2002/2003 fi nancial year, where 133 applications were received.
Reason for not achieving the target: number of employers in this category decreased to ± 140 due to companies being sold, merged or transferred to other SETAs.
Employers with 50 to 149 employees: * Target 40% for 83 applicationsAchieved 47% as 97 applications were received for the fi nancial year 2003/2004 compared to the 89 applications for the 2002/2003 fi nancial year.
Employers with 1 to 49 employees:The applications increased to 225 for the fi nancial year 2003/2004 fi nancial year, compared to 151 for the 2002/2003 fi nancial year.
A total amount of R36 303 899 was paid in grants during the year 2003/2004.
422 companies submitted Workplace Skills Planning Implementation Grants (WSPIG) for the 2003/2004 fi nancial year.
12
4.2 Discretionary Grants
The SETASA Governing Board agreed that:
SETASA may transfer any unclaimed or surplus monies that have not been allocated to Mandatory Grants, to the Discretionary Grants Fund. These funds would be in addition to the standard 10% levy contributions that are allocated to Discretionary Grants.
Discretionary grants are available to applicants who, in the judgement of the SETASA, engage in skills development practices that will lead to the achievement of the SETASA’s Sector Skills Plan objectives and the broader National Skills Development Strategy and the Human Resources Development Strategy targets.
SETASA’s Discretionary Grant Review Committee (DGRC) assess and award grants based on the assessment reports generated once each project has been evaluated against the SETASA funding.
Grant awards are paid in a maximum of three tranches, on submission of the required documentation.
Funding can only be expended against budgetary line items for which grant awards were approved. Any requests for amendments/changes to line item allocations must receive the prior approval of the SETA and any unspent funds must be returned to the SETASA at conclusion of the contract period.
The fi rst Discretionary Grants were advertised through national press and on the SETASA website in February 2004. Applications were received and evaluated, resulting in 68 companies being awarded funding for projects focusing on Learnerships, ABET and HIV/Aids specifi cally.
The details of the funds awarded are listed in the following tables.
13
Com
pany
Prog
ram
me
Gra
ntB
enefi
cia
ries
Lear
ning
Pro
gram
mes
Stat
us
A
fgri
H
IV/A
IDS
50
000
500
Aw
aren
ess
In
pro
gres
s
LEA
RN
ERSH
IPS
189
880
10
Lea
ders
hip
prog
ram
mes
- E
mpl
oyed
C
ompl
eted
3 M
anag
emen
t Dev
elop
men
t -
Empl
oyed
In
pro
gres
s
2 C
hart
ered
Acc
ount
ing
- Em
ploy
ed
In p
rogr
ess
Afr
ican
Rea
lty
CA
PAC
ITY
B
UIL
DIN
G
28
244
4 M
iddl
e M
anag
emen
t Ski
lls P
rogr
amm
e In
pro
gres
s
Am
onde
l Pak
kers
AB
ET
20
000
10 A
cros
s le
vels
In
pro
gres
s
Ass
ocia
ted
Frui
t Pr
oces
sors
CA
PAC
ITY
B
UIL
DIN
G9
000
Gra
nt
In p
rogr
ess
BAT
Dis
trib
utor
s H
IV/A
IDS
8 10
0 88
Aw
aren
ess
Com
plet
ed
BAT
Man
ufac
ture
rs H
IV/A
IDS
138
100
1174
Aw
aren
ess
Com
plet
ed
Bee
fmas
ter
HIV
/AID
S 8
700
87
Aw
aren
ess
In p
rogr
ess
LEA
RN
ERSH
IPS
250
000
20 N
C A
gri M
achi
nery
Tec
hnic
ian
- Em
ploy
ed
In p
rogr
ess
AB
ET20
000
10 A
cros
s le
vels
In
pro
gres
s
BK
B L
imit
ed C
APA
CIT
Y
BU
ILD
ING
47
500
45
Woo
l Han
dlin
g Sk
ills
Prog
ram
me
In p
rogr
ess
Perio
d to
Ma
rch
2004
14
Ear
ly B
ird
Farm
AB
ET
295
000
136
Acr
oss
Leve
l 1 to
4
In p
rogr
ess
HIV
/AID
S 1
1 00
0 22
Aw
aren
ess
Com
plet
ed
Goe
de H
oop
Cit
rus
CA
PAC
ITY
B
UIL
DIN
G
35
424
12 S
enio
r M
iddl
e M
anag
ers
Skill
s Pr
ogra
mm
e In
pro
gres
s
Gol
den
Mac
adam
ias
HIV
/AID
S 15
000
15
0 A
war
enes
s In
pro
gres
s
Gra
nor
Pass
i L
EAR
NER
SHIP
S 2
25 0
00
25 N
atio
nal C
ertfi
cate
in P
acka
ging
- E
mpl
oyed
and
U
nem
ploy
edIn
pro
gres
s
HIV
/ A
IDS
25 0
0025
0 A
war
enes
s In
pro
gres
s
Illo
vo S
ugar
- E
ston
APP
REN
TIC
ESH
IP
25
000
2 M
illw
righ
t - E
mpl
oyed
In
pro
gres
s
CA
PAC
ITY
B
UIL
DIN
G 5
100
4
Em
ploy
men
t Equ
ity M
obili
ty
In p
rogr
ess
Illo
vo S
ugar
- G
ledh
ow A
BET
2
6 00
0 13
Lev
el 1
C
ompl
eted
LEA
RN
ERSH
IPS
75
000
5 E
lect
rica
l and
Fitt
ing
- Em
ploy
ed
In p
rogr
ess
1 E
lect
rica
l and
Fitt
ing
- Em
ploy
ed
Com
plet
ed
Illo
vo S
ugar
- H
ead
Offi
ce
LEA
RN
ERSH
IPS
250
000
20
Eng
inee
rs in
Tra
inin
g -
Une
mpl
oyed
C
ompl
eted
Illo
vo S
ugar
- M
ereb
ank
AB
ET
17
500
8 L
evel
s 1
to 3
In
pro
gres
s
LEA
RN
ERSH
IPS
60
000
4 L
abor
ator
y Te
chni
cian
- U
nem
ploy
ed
In p
rogr
ess
Illo
vo S
ugar
- N
oord
sber
g H
IV/A
IDS
27
600
276
Aw
aren
ess
In p
rogr
ess
LEA
RN
ERSH
IPS
37
500
3 F
ittin
g -
Empl
oyed
C
ompl
eted
Com
pany
Prog
ram
me
Gra
ntB
enefi
cia
ries
Lear
ning
Pro
gram
mes
Stat
us
15
Bol
and
Agr
i A
BET
20
000
10
Lev
els
1 an
d 3
In p
rogr
ess
HIV
/AID
S 41
500
50
1 A
war
enes
s In
pro
gres
s
LEA
RN
ERSH
IPS
APP
REN
TIC
ESH
IPS
332
500
15
Agr
i Sal
es a
nd S
ervi
ces
- Em
ploy
ed
In p
rogr
ess
8 T
ract
or M
echa
nic
- U
nem
ploy
ed
In p
rogr
ess
2 T
ract
or M
echa
nic
- Em
ploy
ed
In p
rogr
ess
CA
PAC
ITY
B
UIL
DIN
G 2
0 12
1 11
Ass
esso
rs a
nd M
oder
ator
s In
pro
gres
s
Bri
tish
Am
eric
an T
obac
co H
IV/A
IDS
273
000
1201
Aw
aren
ess
Com
plet
ed
Cap
e M
ohai
r W
ool
AB
ET
20
000
10 A
cros
s Le
vels
In
pro
gres
s
Cap
espa
n (P
ty)
Ltd
CA
PAC
ITY
B
UIL
DIN
G64
400
8 O
pera
tiona
l Ski
lls P
rogr
amm
e In
pro
gres
s
14 B
ehav
iour
al S
kills
Pro
gram
me
In p
rogr
ess
Cer
es F
ruit
Gro
wer
s C
APA
CIT
Y
BU
ILD
ING
4
1 18
4 22
Sup
ervi
sor T
rain
ing
In p
rogr
ess
Cer
es F
ruit
Pro
cess
ors
AB
ET
24 0
00
11 L
evel
s 1,
2 a
nd 4
In
pro
gres
s
Col
orsf
ruit
SA
(Pt
y) L
td L
EAR
NER
SHIP
S 24
642
1
Pra
ctic
al A
gric
ultu
ra D
iplo
ma
- U
nem
ploy
ed
In p
rogr
ess
1 E
xpor
t Rea
dine
ss -
Em
ploy
ed
In p
rogr
ess
Cou
nty
Fair
Foo
ds A
BET
17
150
9
All
9 le
arne
rs a
re a
t Lev
el 3
In
pro
gres
s
HIV
/AID
S 28
000
20
8 A
war
enes
s In
pro
gres
s
16
Illo
vo S
ugar
- P
ongo
la
AB
ET
30
500
30 A
cros
s Le
vels
1 to
4
In p
rogr
ess
HIV
/AID
S 1
2 00
012
0 A
war
enes
s In
pro
gres
s
LEA
RN
ERSH
IPS
50
000
4 S
uper
viso
ry
In p
rogr
ess
CA
PAC
ITY
B
UIL
DIN
G
59
700
89 D
iver
sity
In
pro
gres
s
Illo
vo S
ugar
- S
ezel
a A
BET
2
8 00
014
Acr
oss
Leve
ls 1
to 4
In
pro
gres
s
HIV
/AID
S 4
3 70
043
7 A
war
enes
s In
pro
gres
s
LEA
RN
ERSH
IPS
103
250
8 E
ngin
eers
in T
rain
ing
- Em
ploy
ed
In p
rogr
ess
Illo
vo S
ugar
- U
mfo
lozi
AB
ET
124
100
68 L
evel
s 1
to 4
In
pro
gres
s
HIV
/AID
S 6
540
49 A
war
enes
s In
Pro
gres
s
Illo
vo S
ugar
- U
mzi
mku
lu A
BET
6
000
6 A
cros
s le
vels
In
pro
gres
s
LEA
RN
ERSH
IPS
75
000
2 E
lect
rica
l and
Che
mic
al E
ngin
eeri
ng -
bot
h Em
ploy
ed
In p
rogr
ess
APP
REN
TIC
ESH
IPS
2Fi
tting
and
Ele
ctri
cal -
bot
h Em
ploy
edIn
pro
gres
s
IM
QA
S C
APA
CIT
Y
BU
ILD
ING
9
600
0 G
rant
C
ompl
eted
Int
erco
ntin
enta
l Tob
acco
HIV
/AID
S 2
200
22 A
war
enes
s C
ompl
eted
Kar
oo O
ranj
e La
ndbo
u H
IV/A
IDS
20
000
200
Aw
aren
ess
In P
rogr
ess
Kat
Riv
er C
itru
s C
o-op
erat
ive
HIV
/AID
S 1
5 00
050
0 A
war
enes
s In
pro
gres
s
Kro
mco
CA
PAC
ITY
B
UIL
DIN
G
59
400
30 M
anag
emen
t Ski
lls P
rogr
amm
e In
pro
gres
s
KZ
N P
oult
ry I
nsti
tute
HIV
/AID
S 3
2 00
018
Ski
lls P
rogr
amm
es -
Une
mpl
oyed
In
pro
gres
s
Com
pany
Prog
ram
me
Gra
ntB
enefi
cia
ries
Lear
ning
Pro
gram
mes
Stat
us
17
Lan
gklo
of F
orum
AB
ET
200
000
100
Acr
oss
all L
evel
s In
pro
gres
s
Leo
nabo
Din
gler
AB
ET
60
000
30 A
cros
s al
l Lev
els
In p
rogr
ess
Let
aba
Cit
rus
Proc
esso
rs/E
stat
esLE
AR
NER
SHIP
S1
250
000
100
Var
ious
- E
mpl
oyed
and
Une
mpl
oyed
In p
rogr
ess
Let
aba
Pack
ers
LEA
RN
ERSH
IPS
627
500
43 V
ario
us -
Em
ploy
ed a
nd U
nem
ploy
ed
In p
rogr
ess
Lut
zvill
e W
inge
rde
AB
ET
20
000
10 A
cros
s al
l Lev
els
In p
rogr
ess
Nat
al A
gri
HIV
/AID
S 4
5 00
045
0 A
war
enes
s In
pro
gres
s
Noo
rdel
ike
Sent
raal
Kat
oen
AB
ET
9 0
009
Acr
oss
all L
evel
s In
pro
gres
s
Neo
Nov
o M
arke
ting
HIV
/AID
S 8
700
1 E
xpor
t Rea
dine
ss S
kills
Pro
gram
me
In p
rogr
ess
LEA
RN
ERSH
IPS
18
904
1 N
atio
nal D
iplo
ma:
Agr
icul
tura
l Man
agem
ent -
Une
mpl
oyed
In
pro
gres
s
Nov
o Pa
ckho
use
HIV
/AID
S 1
4 22
028
Aw
aren
ess
Com
plet
ed
NTK
AB
ET
20
000
10 A
cros
s al
l Lev
els
In p
rogr
ess
HIV
/AID
S 3
0 00
030
0 A
war
enes
s In
pro
gres
s
LEA
RN
ERSH
IPS
462
500
37 G
rain
han
dlin
g an
d A
gri S
ales
In
pro
gres
s
Oos
Vry
staa
t K
aap
Bep
erk
(OV
K)
AB
ET
24
383
10 A
cros
s al
l Lev
els
Com
plet
ed
Pat
ensi
e C
itru
s Lt
d C
APA
CIT
Y
BU
ILD
ING
3
0 60
0 15
Sup
ervi
sor
and
Art
isan
Tra
inin
g In
Pro
gres
s
Pep
pade
w I
nter
nati
onal
LEA
RN
ERSH
IPS
562
500
45
Var
ious
- E
mpl
oyed
and
Une
mpl
oyed
In
Pro
gres
s
18
Pik
etco
Pty
Ltd
AB
ET
52
000
26 A
cros
s al
l Lev
els
In p
rogr
ess
CA
PAC
ITY
B
UIL
DIN
G
16 6
32
7 A
rtis
an S
kills
Pro
gram
mes
In
pro
gres
s
PPE
CB
CA
PAC
ITY
B
UIL
DIN
G
37 2
584
Var
ious
Lea
rnin
g Pr
ogra
mm
es
In p
rogr
ess
Pre
mie
r Fo
ods
LEA
RN
ERSH
IPS
250
000
20 M
illin
g -
Empl
oyed
and
Une
mpl
oyed
In
pro
gres
s
Rai
nbow
Chi
cken
Far
ms
LEA
RN
ERSH
IPS
1 87
5 00
015
0 V
ario
us L
earn
ing
Prog
ram
mes
In
pro
gres
s
CA
PAC
ITY
B
UIL
DIN
G
164
160
225
Ass
esso
rs, M
ento
rs a
nd C
oach
es
In p
rogr
ess
RE
Lunt
AB
ET
5 00
05
Acr
oss
leve
ls
In p
rogr
ess
HIV
/AID
S 5
400
54 A
war
enes
s In
pro
gres
s
Red
Mea
t Aba
ttoi
r A
ssoc
iati
on C
APA
CIT
Y
BU
ILD
ING
2
000
Tow
ards
uni
t sta
ndar
ds
Com
plet
ed
Roc
klan
ds P
oult
ry H
IV/A
IDS
40 8
0065
6 A
war
enes
s In
pro
gres
s
SA
Sug
ar A
ssoc
iati
on (
SASA
) H
IV/A
IDS
3 80
038
Aw
aren
ess
In p
rogr
ess
LEA
RN
ERSH
IPS
1 20
0 00
096
Res
killi
ng le
arne
rshi
ps -
Em
ploy
ed
In p
rogr
ess
Sen
wes
AB
ET
60 0
0030
Acr
oss
all L
evel
s In
pro
gres
s
HIV
/AID
S 65
000
650
Aw
aren
ess
In p
rogr
ess
LEA
RN
ERSH
IPS
395
000
30 V
ario
us L
earn
ersh
ips
- Em
ploy
ed
In p
rogr
ess
Sui
dwes
Bel
eggi
ngs
LEA
RN
ERSH
IPS
200
000
16 V
ario
us L
earn
ersh
ips
- Em
ploy
ed
Com
plet
ed
Com
pany
Prog
ram
me
Gra
ntB
enefi
cia
ries
Lear
ning
Pro
gram
mes
tSt
atus
19
Sun
days
Riv
er C
itru
s C
APA
CIT
Y
BU
ILD
ING
45
000
13 L
ine
Man
gem
ent S
kills
Pro
gram
me
In p
rogr
ess
Ton
gaat
Hul
ett
- R
efi n
ery
LEA
RN
ERSH
IPS
262
500
21 M
echa
nica
l, el
ectr
ical
and
Inst
rum
ents
In
pro
gres
s
Ton
gaat
Hul
ett
Suga
r - A
mat
ikul
u A
BET
50
000
25 A
cros
s le
vels
In
pro
gres
s
APP
REN
TIC
ESH
IPS
37 5
003
Inst
rum
ent a
nd M
illw
righ
t - E
mpl
oyed
In
pro
gres
s
Ton
gaat
Hul
ett
- Fe
lixto
n A
PPR
ENTI
CES
HIP
S 11
2 50
09
Mill
wri
ght,
Elec
tric
al a
nd P
late
r/W
elde
r -
Empl
oyed
In
pro
gres
s
Ton
gaat
Hul
ett
- D
arna
ll A
PPR
ENTI
CES
HIP
S 75
000
6 In
stru
men
t, Pl
ater
, Wel
der
and
Elec
tric
al
In p
rogr
ess
Tra
nsva
al S
ugar
Ltd
(TS
B)
AB
ET
52 0
0052
Acr
oss
all L
evel
s In
pro
gres
s
LEA
RN
ERSH
IPS
1 29
4 72
084
Var
ious
Lea
rner
ship
s -
Empl
oyed
and
Une
mpl
oyed
In
pro
gres
s
Tw
o a
Day
Gro
up L
td
HIV
/AID
S 24
100
24
1 A
war
enes
s In
pro
gres
s
CA
PAC
ITY
B
UIL
DIN
G18
900
18
9 F
ruit
Sort
ing
and
Pack
ing,
For
klift
and
Tra
ctor
Ski
lls
Pro
gram
mes
In p
rogr
ess
Vry
staa
t Ko
-op
Bep
erk
HIV
/AID
S 43
000
430
Aw
aren
ess
In p
rogr
ess
LEA
RN
ERSH
IPS
275
000
22 G
rain
Han
dlin
g an
d A
gric
ultu
ral M
achi
nery
Tec
hnic
ian
Em
ploy
edIn
pro
gres
s
Vye
boom
CA
PAC
ITY
B
UIL
DIN
G15
444
5 A
rtis
an S
kills
Pro
gram
mes
In
pro
gres
s
Wes
tfal
ia A
grib
usin
ess
AB
ET
12 0
006
Acr
oss
all L
evel
s In
pro
gres
s
LEA
RN
ERSH
IPS
25 0
002
Man
agem
ent D
evel
opm
ent P
rogr
amm
e -
Empl
oyed
In
pro
gres
s
WPK
AB
ET
100
000
50 A
cros
s al
l Lev
els
In p
rogr
ess
20
4.3 National Skills Fund (NSF)
The SETASA NSF Project has funded 5 main Projects, namely, • Export Readiness, • SMME, • Cross Functional Skilling, • Bursary Scheme Project and • ABET Programme.
There were no donors funding any other projects.
The SETASA NSF Project was conceptualised in May 2001 with a fi nal Business Plan being concluded in September 2001. It was only in March 2002 that the SETASA NSF Project was approved by the Department of Labour. Since the initial development of the NSF proposal some adjustments had to be made with the approval of the Department of Labour in the form of a Change Request which culminated in the following:
• Increased market demand for the SETASA-NSF Project services. There had been a good reception for the skills development services offered by the SETASA-NSF PROJECT. The resultant over-subscription necessitated some budget adjustments.
• The budget costs of ABET was under-estimated as indicated by the SETASA-NSF Project needs. Analysis revealed that more than 2000 learners wanted to participate in the programme. In order to meet NSDS objectives we had to ensure that ABET programmes culminated in learners attaining NQF Level 1.
• We increased Skills Programmes in the Export Readiness Project with an extra 1100 learners. • The initial Cross Functional Skilling Learnership was decreased to 150, and the balance were
allocated to training through the bursary scheme which benefi ts the unemployed youth. • Increasing bursary benefi ciaries from 25 to 160 further compensated for the decrease in numbers
initially attributed to the Cross Functional Skilling Learnership.
The adjustments enabled us to train 2150 learners through a skills programmes, so that 135 more unemployed learners will have been awarded bursaries to study in the agriculture sector and that 150 learners will progress through a learnership in Cross Functional Skilling.
Revised Enrollment Numbers
Project Original Numbers Revised Numbers
Export Readiness• Learnerships• Skills Programmes
100400
1001500
SMME Project 850 850
Cross Functional Skilling 300 150
Bursary Scheme 25 160
ABET Programme 1050 2100
TOTAL 2725 4860
21
NSF Projects Summary Status: March 2004
NSF ProjectsSub Projects and activities
Total No. of Trainees trained or
being trained
Affected SSU’s
Export Readiness
• HACCP & GMP Skills Programme• Hygiene Awareness Skills Programme• Sheep Shearing Skills Programme Advanced Shearing Machine Advanced Shearing Blade Basic Wool Handling Classing of Wool
• State Vet Skills Training (Disease Control Short Course)
• Agricultural Machinery Technician Learnership • SMME Technical Training Skills Programme
Research :• Sector Skills Strategy – Fruit Processing and Packaging
Industry• Strategy and Implementation Framework for the Poultry
Industry
2623758
65189
9240
394
10072
Red Meat
FibreFibreFibreFibre
Poultry
Grain & MillingPoultry
Fruit
Poultry
SUB TOTAL 4972
SMME• Plan to Start a Successful Business Skills Programme Target - 850 Training
658
SUB TOTAL 658
Cross Functional Skilling
• Sugar Technical Maintenance Technician Learnership
48 Learners in NQF level 2 48 Learners in NQF Level 3 12 Learners in NQF Level 2 47 Learners in NQF 4
48481247
Sugar
SUB TOTAL 155
Bursary Bursaries : Awarded 160 bursaries 160 All sectors
SUB TOTAL 160
ABET 2100 learners targeted to benefi t from ABET 1630 All sectors
SUB TOTAL 1630
Total no. of Learners trained or undergoing training 7575
22
Export Readiness Project
• The Export Readiness Project has various training programmes. Each training project is aimed at ensuring that the South African Secondary Agricultural sector is capacitated to become a global player in the export market. This will result in job creation and reduction of poverty.
• Strategic Planning and Analysis Study for IndustryA Strategy and Implementation Framework for the Poultry Industry has been developed with the outstanding benchmarking of South Africa, to world and groundbreaking new SMME costing versus commercial production cost.
• Skills Strategy for the Fruit and Processing IndustryA Research project was funded by the SETASA-NSF Project and the Report that was published provided an overview of the global trends in the fruit and fruit processing industries Priority strategic themes for future growth and development. The purpose of this report was to propose a skills strategy for the secondary agricultural sector based on the identifi ed global trends and strategic themes.
• HACCP and Good Manufacturing Practice Skills ProjectThe training programmes are aimed at ensuring that the South African Abattoirs meet the health and safety standards demanded by the European Markets. This will in turn increase the export volumes from South Africa to the European Markets.
Training Intervention Total number targeted Total trained end of March
GMP & HACCP 675 262
• Hygiene Awareness Skills Project A hygiene awareness training programme is offered to all abattoirs in South Africa
This is to ensure that:- A good solid base for HACCP and GMP is laid- Internal (South Africa) food safety regulations are adhered to by industry- All workers are made aware of the importance of food safety
Training Intervention Total number targeted Total trained end of March
Hygiene Awareness 4166 3758
• State Vet Skills Training (Disease Control Short Course) The outbreak and the spread of diseases such as Foot and Mouth and Newcastle diseases can have
serious negative economic consequences for the South African export market. In order to counter the threat posed by the spread of diseases, a training programme for state veterinarians and animal health technicians is offered by the SETASA-NSF Project. This is done through a partnership between SETASA-NSF Project and the National Department of Agriculture.
Training Intervention Total number targeted Total trained end of March
Disease Control Skills Project
394 394
23
• Sheep Shearing Skills Project The South African wool industry has the potential to increase their export volumes to the global market.
In order to assist in this process, SETASA and PAETA NSF Projects decided on a joint venture to fund the development and implementation of a wool shearer Skills Programme.
Training Intervention Total number targeted Total trained end of March
2004
Advanced Shearing Machine 130 65
Advanced Shearing Blade 200 189
Basic Wool Handling 120 92
Classing of Wool 60 40
• Agricultural Machinery Technician Learnership Learners from Mpumalanga are being enrolled at the Evander College and Learners from the Western Cape are being enrolled at the South Cape College for this Learnership.
Cross Functional Skilling Project
This three year learnership programme was started in order to increase the level of skills within the Sugar Sub Sector. The idea is to train unemployed youth on a range of related areas in order to increase their chances of employment. Five major companies and their subsidiaries are participating in this learnership with:
• 48 Learners having completed Level 2 • 48 Learners having completed Level 3• 12 Learners have been enrolled into the Level 2 Learnership• 47 Learners commenced Level 4
SMME
• Three service providers have been contracted to deliver the SMME Skills Programme Training. • Training has been allocated to service providers by province, and the programme will commence in
March 2004 and will end July 2004.
SETASA NSF targets: 850 learners in Secondary Agriculture sector
A Skills Programme entitled “Plan to Start a Successful Business” has been registered by SETASA and will lead to a qualifi cation. The SETASA ETQA is negotiating MoU’s with Services SETA and PAETA. A band MoU has been signed with UMALUSI, the Quality Assurance Council for General and Further Education and Training, to ensure the qualifi cation pathway to a full Learnership.
24
Geographic Area allocated No of Trainees allocated
Mpumulanga
Limpopo
Gauteng
Total 204 Training120 Mentoring
Kwa Zulu Natal
Eastern Cape
Western Cape
Total240 Training120 Mentoring
Northern Cape
Free State
North West
Total 204 Training
ABET Since the inception to date, three appointed service providers have enrolled in excess of 1630 learners into the programme.
Of these, 168 have already completed their Portfolios of Evidence and have been proven competent. A number of these learners will be continuing to the next level, as soon as the sector of the industry that they are employed in, enters their low season.
In the fi rst quarter of 2004, the SETASA-NSF embarked on a number of community projects. These are getting off the ground and appear, from all accounts, to be well supported.
The ABET programmes focusing on the employers are national, while the community projects are focused in the North West, Gauteng and Mpumalanga.
African Coloured Indian WhiteNo.
Level MT 1 2 3 4 M F M F M F M F
ALDA 0 208 61 86 23 317 74 378 131
EEE 180 88 81 31 22 196 180 19 6 1 402 37
LSC 0 322 310 138 80 194 655 1 850 0
Total 180 618 452 255 125 707 909 19 7 0 0 0 1 1630 168
25
KEY to Service Providers
ALDA - African Learning and Development Academy EEE - Triple E Training LSC - Light Study College
Other Planned Activities
Learnership in Meat TechnologyThe service provider assisting the Red Meat Sub Sector has completed all unit standards for the Red Meat Learnership. The Learnership is in the registration phase with the South African Qualifi cations Authority.
Learnership in Poultry ProductionThe service provider has developed the Poultry Unit Standards for Levels 1, 2 and 3 for Production and Processing and has completed the verifi cation process with representatives from the Poultry Industry. Registration of the Learnership is being arranged with the South African Qualifi cations Authority.
All information provided is consistent with the reports to the National Skills Fund.
26
4.4 Education Training Quality Assurance (ETQA)
Due to the resignation of the Chief Executive Offi cer (CEO) in 2003, the Education Training Quality Assurance (ETQA) Manager, Shaafi g Fredericks, was responsible for Learnerships and had to perform a range of other functions, which were normally attended by the CEO.In November 2003, when an Acting Chief Executive Offi cer, Dr Julie Reddy was appointed, only then could the ETQA and Learnerships be focused on. An ETQA system was developed with the assistance of an expert consultant and all procedures and policies and documentation for ETQA were developed.
Fifteen (15) providers have been registered with the ETQA, two (2) providers have been provisionally accredited and four (4) have entered into joint implementation plans with the ETQA.
A baseline monitoring SAQA audit was completed and a favourable audit report was received. A full SAQA audit will be done for the ETQA division in the 2004/2005 fi nancial year.
Investors In People (IiP)
Workshops were held nationally to introduce Investors in People to the sector. These workshops were convened in Cape Town, KwaZulu Natal and Gauteng. SETASA thus far has fi ve (5) companies committed to the programme namely:
• Hexkoel Beperk• Sundays River Citrus• Colours Fruit Snocooled Marketing Ltd • Kromco Ltd• NeoNovo Marketing
Quality Management System (QMS)
With the support of GTZ (German Technical Co-operation), SETASA secured the services of Mr Peter Kleinzorge to assist with the development of a Quality Management System (QMS). The process was started in November 2003 and was completed in March 2004. The QMS as outlined below, will be used to inform a process of restructuring/re-alignment of the organisation. This approach will enable SETASA to have a lean infrastructure while ensuring that its staff has the necessary skills and knowledge to carry out the key functions of the organisation. Currently the documentation for the QMS is being completed.
27
Learnership By Status 22 SETASA
Registration No. NQF Status Learnership Title
22Q220001201784 4 R Learnership in Agri Sales and Services Level 4
22Q220006222405 5 R Learnership in Grain Handling Management level 5
22Q220007201602 2 R Learnership: Agricultural Machinery Technician Level 2
22Q220008201282 2 R Learnership in Grain Handling Processes Level 2
22Q220009212585 5 RLearnership in Specialist Agricultural Machinery Technician Level 5
22Q220011391282 2 R Sugar Industry Technical Mintenance worker Level 2
22Q220012001635 5 R Certifi cate in Practical Management Level 5
22Q220013301252 2 R Agri Trade Processes Level 2
22Q220014241203 3 R National Certifi cate in Tobacco Production Level 3
22Q220015271454 4 R National Certifi cate in Tobacco Services Level 4
22Q220016251293 3 R National Certifi cate in Metallised Paper Production Level 3
22Q 220017231203 3 R National Certifi cate in Cigarette Filter Rod Production Level 3
22Q220018231454 4 RNational Certifi cate in Cigarette Filter Rod Production Technology Level 4
22Q220019271414 4 R National Certifi cate in Cigarette Production Technology Level 4
22Q220020221213 3 RSeed Research and development Operations: Operate in a Team Level 3
22Q220021221213 3 RSeed Research and Development Operations: Apply Basic Business Principles Level 3
22Q220022241534 4 RFurther Education and Training Certifi cate: Seed Production: Execute Seed Trials Level 4
22Q220023241544 4 RFurther Education and training Certifi cate: Seed Production: Dry Seed Level 4
22Q220024211264 4 RFurther Education and training Certifi cate: Seed Marketing: Store Seed Level 4
22Q220025211264 4 RFurther Education and training Certifi cate: Seed Marketing: Execute Seed Trials Level 4
22Q220026211233 3 RNational Certifi cate: Seed Processing and Packaging: Operate in a Team Level 3
28
Registration No. NQF Status Learnership Title
22Q220027211214 4 RFurther Education and Training Certifi cate: Seed Research and Development: Certify a Seed Unit Level 4
22Q220028201204 4 RFETC: Seed Research and development: Conduct a Field Inspection of a seed Unit Level 4
22Q220029241694 4 RFurther Education and Training Certifi cate: Seed Processing and packaging Control Level 4
22Q220030231273 3 R National Certifi cate: Seed Analysis: sample Seed Level 3
22Q220031211273 3 R National Certifi cate: Seed Analysis: Test the Vigour of Seed Level 3
22Q220032261223 3 RNational Certifi cate: Dry Pet Food Processing (Food safety / Ingredient Storage) Level 3
22Q220033241213 3 RNational Certifi cate: Dry Pet Food Processing (Automated Batch Coating) Level 3
22Q220034241243 3 RNational Certifi cate: Dry Pet Food Processing (Automated Filling) Level 3
22Q220035311444 4 R Further Education and Training Certifi cate: Sugar Processing Level 4
22Q220036221405 5 R National Certifi cate in Sugar Technology Level 5
22Q220037281242 2 RNational Certifi cate in Sugar Technology Processing: Sugar Refi ning Level 2
22Q220038281242 2 RNational Certifi cate in Sugar Technology Processing: Juice Preparation Level 2
22Q 220039271222 2 RNational Certifi cate in Sugar Technology Processing: Crystallisation Level 2
22Q220040251242 2 RNational Certifi cate in Sugar Technology Processing: Laboratory Practice Level 2
22Q220041281222 2 RNational Certifi cate in Sugar Technology Processing: Extraction Level 2
The Standard Generating Body (SGB) and Processing supported by SETASA, developed and submitted qualifi cations to SAQA, and after active interventions by SETASA, the SGB and consultant contracted by SETASA, the National Learner Record Database (NLRD) numbers for qualifi cations from SAQA were sucessfully attained. An audit was conducted of all Learnerships registered accross the 25 SETAs to determine which Learnerships are applicable for implementation in the Secondary Agriculture sector. Memorandum of Understanding (MoUs) have been signed with the fi ve (5) SETAs namely,FASSET, CETA, CHIETA, HWSETA, ESETA and the band ETQA, Umalusi, the Quality Assurance Council for General and Further Education and Training. SETA is still negotiating MoU’s with PAETA and Services SETA.
29
4.5 Small Medium Micro Enterprises (SMMEs)
Three service providers were contracted for the SMME Development.
Expected outcomes:
• approved learning programme / curriculum detailing the training on a daily and hourly basis;• SMMEs and new entrants having the ability to start successful business;• to sustain their business;• to improve the economic growth of the company;• compete in the market place; and • increase productivity.
Business and Entrepreneurial skills for SMMEs
329 individuals from the sectors’ SMMEs have been trained in entrepreneurial skills. This means that SETASA is almost a quarter of the way to reaching its target of 1 400 set for the end of June 2004. In Mpumulanga and Limpopo alone, 68 SMMEs have completed training programmes for their employees.
Fano Luthuli in charge of the SMME portfolio at SETASA, urges SMMEs to use their skills development levies as an opportunity to build their business and entrepreneurial skills, rather than as another form of taxation. These improved skills should be used to ensure their own survival.
Inhibiting the creation of successful SMMEs is the lack of resources for building the physical environment for small business to thrive in. Another challenge is for SMMEs to give up-to-date contact details to their industry associations so that SETASA can introduce these small businesses to the service providers that are providing skills training in all nine provinces.
Challenges to Adult Basic Education and Training (ABET)
Challenges that face the widespread provision of ABET are:
• the dropout rate of learners• the lack of commitment from some employers to training for their workforce and • the demand that training only occurs after the working day is over.
Fano Luthuli advises that employers who intend to enrol their employees in workplace-based training interventions have a thorough consultative meeting before any programme is put together. This will assist in ironing out potential problems and enable everyone – SETASA, service providers, and employers to ‘sing the same song’.
Despite the challenges to implementing ABET in the workplace, Stoffberg Milling in Middelburg, Mpumulanga successfully trained 132 employees after work, and all 132 earned UNISA-accredited ABET certifi cates.
HIV Awareness in the sector
After a rather slow start to HIV Awareness training for employees, the programme is now well under way, with a Durban-based Previously Disadvantaged Individual (PDI) company, Mazmoh, having already trained 1300 people in awareness of the virus and how it spreads.
The intention is for the awareness programmes to be supplemented by courses in HIV management, which would cover policy formulation, management procedures, and the provision of counselling and antiretroviral medication.
30
4.6 Service Providers
Consultants & Service Providers employed for the period 1 April 2003 to 31 March 2004
A number of consultants and technical advisers were employed to progress specifi c interventions, where little or no internal capacity existed.
Nature of Assignment Costs incurred (R) Outcomes Status
Verifying and updating Salary and Personnel Systems
9 067 Monthly allocation of staff salaries Cancelled
Verifi cation of monthly reconciliations
31 948Book-keeping procedure after monthly payments
Cancelled
Updating and fi nalisation of the Constitution
2 300 Finalised Constitution Expired
Financial and IT Management
200 000
320 000
Financial Management set-up Fee
Financial Management and IT-Functions for the period December 2003 to March 2004
Current
Advice and Guidelines to Policies
16 526As certain changes were made to policy documents, advise was sort for the correct decision making process
Current
Training of Assessors 53 692Two consultants were employed to train Assessors nationally. Thus far SETASA has 300 Assessors trained
Current
Quality Assurance of Portfolios submitted from the trained Assessors
20 834After attending the Assessor Training, portfolios had to be submitted, for quality assessment
Current
ETQA Assistance 69 000
Due to the ETQA function having a late start with most of its activities, assistance was sought to get all policies, procedures and guidelines in place
Current
Electronic Workplace Skills Plan Programme
168 712To obtain data needed for the Quarterly Monitoring Report.
Cancelled
SMME Development 4 552 416
3 Service Providers were contracted to assist with this project
Expected outcomes: • approved learning programmes/
curriculum detailing the training on a daily and hourly basis;
• SMMEs and new entrants having the ability to start a successful business;
• To sustain the business;• To improve the economic growth
of the company;• Compete in the market place and • Increase productivity.
Current
31
5. Performance Outcomes and Constraints
Reporting against the achievement of 2003/2004 targets:
Targets Progress
3000 learners in ABET
There are currently over 3 000 Learners in ABET programmes at all ABET levels 1, 2 & 3, 4. This target has been achieved through the National Skills Fund (NSF) project, special projects and discretionary grant funds.
38 Learnerships registered
36 Learnerships have been registered with the DoL with an additional 5 pending registration for a total of 41 Learnerships. The breakdown of Learnerships per Sub Sector Unit (SSU) is as follows: 6 x Grain and Milling with 1pending; 6 x Tobacco; 12 x Seed; 8 x Sugar with 1 pending; 3 x Pet Food; and 1 generic learnership. In addition 1 x Red Meat and 2 x Fruit are pending.
700 learners in LearnershipsTo date the Learnerships division reported 265 learners in Learnerships. Discretionary Grants to support an additional 845 learners in Learnerships which is currently being processed.
300 companies claiming grants
This target has been exceeded beyond expectation. Through concerted efforts by SETASA staff, a total of 445 mandatory grant applications have been received for the 2003/2004 fi nancial year.* 225 from employers with less than 50 employees; * 97 from employers with between 50 to 149 employees; and * 123 from employers with more than 150 employees
10 Investors in People (IiP) sites committed5 sites have signed commitment letters and a further 8 applications are being process.
32
Objectives in the Business Plan
Objective one: Life long learning
ABET learners targets have been achieved per the National Skills Fund (NSF), special projects and Discretionary Grants. Via the Discretionary Grants, 664 learners will also be attending ABET.
NSDS Success Indicators by March 2005
SETASA Target Progress / Compliance
70% of all workers have NQF Level 125% of workers will have been entered to achieve NQF1
ABET levels have been achieved per the NSF, special projects and discretionary grants
15% of workers embarked on structured learning programme (50% would have completed their programme satisfactorily)
A total of 32 000 workers embarked upon structured learning programme
2100 have been trained via the NSF Project and 664 learners will attend ABET via the Discretionary Grant Fund
20% enterprises achieve agreed national standard (IiP)
20 enterprises to participateThus far 5 enterprises have been committed and another 8 are in the process.
Objective two: Fostering skills Development in formal economy for productivity and employment growth
• Payment of Mandatory Grants: This target has been exceeded beyond its expectations • 36 Learnerships have been registered of which the target has been achieved.
NSDS Success Indicators by March 2005
SETASA Target Progress / Compliance
75% of enterprises with more than 150 employees receiving the Mandatory Grant
83 enterprises with more than 150 employees to receive the grant
This target has been exceeded beyond its expectation. 123 applications have been received
Learnerships available and implemented
At least one learnership per SSU developed, implemented and working well
6 Grain and Milling6 Tobacco12 Seed8 Sugar with 1 pending3 Pet Food and 1 Generic Learnership1 Red meat and 2 Fruit are pending
Fibre and Pest Control are in the process of having Unit Standards looked at.
33
Objective three: Stimulating and Supporting Skills Development in Small Businesses
This target is well on the way to being reached.
NSDS Success Indicators SETASA Target Progress / Compliance
20% of SMMEs supported by Skills Development
At least 500 SMMEs exposed to some form of skills programme of their choice
600 SMMEs have been trained.
Objective four: Promoting skills development for employability and sustainable livelihoods through social development initiatives
NSDS Success Indicators SETASA Target Progress / Compliance
100% apportionment is spent on available projects
At least 80% of NSF apportionment spent within the embarked year
850 unemployed individuals have been trained via the NSF project
Objective fi ve: Assisting new entrants into employment in labour market
• 36 Leanerships have been registered thus far and 817 Learners will be enrolled in Learnerships via the Discretionary Grants
NSDS Success Indicators SETASA Target Progress / Compliance
Minimum of 80 000 people under the age of 30 have entered learnerships
At least 500 new entrants participate in learnerships
817 learners will be enrolled in learnerships via the Discretionary Grants
34
6. Marketing and Communication
After the appointment of the Acting Chief Executive Offi cer, Dr Julie Reddy, there were certain changes made at the SETA and these included the following:
• A new logo as well as a new “Vision and Mission Statement” was introduced to show the complete turn around in the SETA.
• A new “user friendly” website was also introduced. • Stakeholders were introduced to the new electronic Workplace Skills Planning Grant, created by
Deloitte the “Financial Manager” with the assistance of the SETASA staff. • SETASA also embarked on a national roadshow, to introduce to stakeholders the new “Electronic
Workplace Skills Planning Grant.” This was held in four provinces, viz. Cape Town, Port Elizabeth, Durban and Gauteng where over 200 stakeholders attended. Plans for another national roadshow is in the pipeline and these will include Limpopo and Kimberley. Positive feedback was received from stakeholders regarding the roadshows.
Marketing Forum meetings held quarterly in conjunction with the Department of Labour were attended. There was good involvement with other SETA’s, as well as with Provincial Labour offi ces.
The National Skills Development Strategy Conference held annually, made stakeholders more aware of SETASA’s presence and its intended way forward. Promotional material and brochures were distributed, and great interest was received from learners both during and after the conference.
SETASA thanks all stakeholders from the following sectors, Fibre, Tea & Coffee, Fruit, Grain, Milling, Pest Control, Poultry, Red Meat, Seed, Sugar and Tobacco, as well as the NSF offi ce who assisted with the operations of the roadshow.
35
Audit Committee Report – 2003/04
Introduction
The Board of SETASA is committed to corporate governance practices.
The audit committee consists of the members listed hereunder and met four times during the year.
• Prof D Scott (Chairman) • Mr M Kumalo (resigned Jan 2004) • Mr A Msiza • Mr J van Niekerk • Mr J Janse van Rensburg
Audit Committee Charter
The Audit Committee continually update its Charter in order to comply with best practice. The Charter complies with principles of good governance and the PFMA. The Audit Committee is accountable to the Board and has an oversight function with regard to the following:
• Financial management and other reporting practices;• Internal controls and the management of risks;• Compliance with laws, regulations and good ethical practices;• The external audit function, and• The internal audit function.
The Audit Committee has executed its responsibilities in compliance with its terms of reference.
Report On The Operations Of The Audit Committee
Activities addressed by the Audit Committee during the period under review:
• Reviewed the risk analysis of SETASA;• Reviewed and approved the internal audit charter;• Reviewed the internal audit coverage plan and budget; • Considered the internal audit reports and made appropriate recommendations;• Management’s follow up of matters that require attention identifi ed by internal audit were monitored;• Compliance with SETASA policies and applicable legislation were monitored;• Reviewed the draft audited Annual Financial Statements for the year ended 31 March 2004;• Reviewed the audit report of the Auditor General of the Annual Financial Statements for the year
ended 31 March 2004.
7. Audit Committee
36
Conclusion
The Audit Committee wishes to report that in its opinion:
• The relative low fi nancial and non-fi nancial performance of SETASA could be attributed to the absence of a CEO for most part of the year;
• The inability of the Board to appoint a permanent CEO was identifi ed as a high risk issue that should be addressed;
• All other risks of SETASA are under control and are continually being updated and the three year audit plan accordingly adjusted so that the risks are being properly managed;
• Matters requiring Management’s attention have been adequately addressed;• The internal control systems are effective;• The internal auditors are operating objectively and independently;• The external auditors are operating objectively and independently;• The Annual Financial Statements for the year ended 31 March 2004 fairly present the position of the
SETASA.;• The Offi ce of the Auditor-General has not raised any matters of signifi cance within the control of
SETASA;• The Audit Committee has carried out its operations appropriately, diligently and in accordance with
the statutory and other requirements.
Prof Deon Scott Chairman
37
8. Financial Statements
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
The Annual Financial Statements for the year ended 31 March 2004, set out on pages 41 to 66, have been approved by the Accounting Authority in terms of section 51 (1)(f) of the Public Finance Management Act , No 1 of 1999 on 31 May 2004, and are signed on their behalf by:
KB ReddyActing CEO
LW HansenChairman
38
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
Contents Page
Report of the Auditor-General 39
Statement of Financial Performance 41
Statement of Financial Position 42
Statement of Changes in Funds 43
Cash Flow Statement 44
Accounting Policies 45
Notes to the Annual Financial Statements 54
Annexure to the Annual Financial Statements 66
39
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS OF SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE FOR THE YEAR ENDED 31 MARCH 2004
1. Audit Assignment
The fi nancial statements as set out on pages 41 to 66, for the year ended 31 March 2004, have been audited in terms of section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), read with sections 3 and 5 of the Auditor-General Act, 1995 (Act No. 12 of 1995). These fi nancial statements, the maintenance of effective control measures and compliance with relevant laws and regulations are the responsibility of the accounting offi cer. My responsibility is to express an opinion on these fi nancial statements, based on the audit.
2. Nature And Scope
The audit was conducted in accordance with Statements of South African Auditing Standards. Those standards require that I plan and perform the audit to obtain reasonable assurance that the fi nancial statements are free of material misstatement.
An audit includes:• examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements,• assessing the accounting principles used and signifi cant estimates made by management, and• evaluating the overall fi nancial statement presentation.
Furthermore, an audit includes an examination, on a test basis, of evidence supporting compliance in all material respects with the relevant laws and regulations which came to my attention and are applicable to fi nancial matters.
I believe that the audit provides a reasonable basis for my opinion.
3. Audit Opinion
In my opinion, the fi nancial statements fairly present, in all material respects, the fi nancial position of the Sector Education and Training Authority for Secondary Agriculture at 31 March 2004 and the results of its operations and cash fl ows for the year then ended in accordance with South African Statements of Generally Accepted Accounting Practice and in the manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999).
40
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS OF SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE FOR THE YEAR ENDED 31 MARCH 2004
4. Emphasis Of Matter
Without qualifying the audit opinion expressed above, attention is drawn to the following matters:
4.1 Non-compliance with Treasury Regulations
• Fraud prevention plan: The Sector Education and Training Authority for Secondary Agriculture has not compiled a fraud prevention plan as required by Treasury Regulation 27.2.1.
• Internal audit: The internal audit plan for the 2003-04 fi nancial year was only approved in February 2004, with the result that the audit committee did not have a basis on which to review the effectiveness of the internal audit as required by Treasury Regulation 27.1.8.
5. APPRECIATION
The assistance rendered by the staff of the Sector Education and Training Authority for Secondary Agriculture during the audit is sincerely appreciated.
N. Manikfor Auditor-General
Pretoria14 July 2004
41
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSSTATEMENT OF FINANCIAL PERFORMANCEFOR THE YEAR ENDED 31 MARCH 2004
Note2003/04
R‘0002002/03
R‘000
REVENUESkills Development Levy: income 2 61 941 47 838Skills Development Levy: penalties and interest 330 331National Skills Fund income 3 8 584 3 746Investment income 4 6 354 5 974Other income 5 4 41
Total revenue 1 77 213 57 930
EXPENSESAdministration expenses 6 (5 107) (4 808)National Skills Fund expenses 3 (8 584) (3 746)Employer Grants and Project expenses 1 (39 207) (38 946)
Total expenses 1 (52 898) (47 500)
NET SURPLUS FOR THE YEAR 1 24 315 10 430
42
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSSTATEMENT OF FINANCIAL POSITIONAT 31 MARCH 2004
Note2003/04
R’000 2002/03
R’000
FUNDS AND LIABILITIES
Funds and ReservesSkills Development Levy: Employer grant reserve - 1 780 Discretionary fund reserve 54 386 28 248Capitalisation reserve 529 572
54 915 30 600
Current LiabilitiesSkills Development Grants payable 7 28 812 30 700Accounts payable 8 4 235 548Value Added Tax 9 1 167 1 897Employee entitlements 10 60 52National Skills Fund 3 7 990 6 068Provision for PAYE received as SDL 2 713 3 563
44 977 42 828
TOTAL NET FUNDS AND LIABILITIES 99 892 73 428
ASSETS
Non-current AssetsProperty, plant and equipment 11 933 1 129
Current Assets
Skills Development Levy debtors 12 13 497 9 399
Accounts receivable 13 8 9
Cash and cash equivalents 14 85 454 62 891
98 959 72 299
TOTAL ASSETS 99 892 73 428
43
Not
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20 1
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44
Note2003/04
R’0002002/03
R’000
NET CASH FLOWS FROM OPERATING ACTIVITIES
15 16 266 17 959
Interest received 6 354 5 852
Investment fair value adjustment - 122
22 620 23 933
Receipts
Skills Development Levy: receipts 57 843 45 946Skills Development Levy: penalties and interest receipts
330 331
National Skills Fund receipts 3 10 506 9 814
Interest received 6 354 5 852
Investment fair value adjustment - 122
Other receipts 5 33
Payments
Administration payments (4 878) (3 387)
Compensation of employees (2 523) (2 298)
Other (2 355) (1 089)
Employer Grant and project payments (41 945) (31 814)
National Skills Fund payments (5 595) (2 964)
Net cash infl ow from operating activities 22 620 23 933
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment 11 (68) (251)
Proceeds from disposal of property, plant and equipment
11 42
Net cash (outfl ow) from investing activities
(57) (209)
Net increase in cash and cash equivalents
22 563 23 724
Cash and cash equivalents at beginning of year
14 62 891 39 167
Cash and cash equivalents at end of year 14 85 454 62 891
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSCASH FLOW STATEMENTFOR THE YEAR ENDED 31 MARCH 2004
45
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
The principal accounting policies adopted in the preparation of these fi nancial statements are set out below and are consistent with those of the previous year.
I. Basis of preparation
The fi nancial statements are prepared in accordance with and comply with Statements of Generally Accepted Accounting Practice. The fi nancial statements are prepared under the historical cost basis.
II. Revenue recognition
i. Levy income
In terms of section 3(1) and 3(4) of the Skills Development Levies Act, 1999 (Act No 9 of 1999), registered member companies of the SETA pay a skills development levy of 1% of the total payroll cost to the SARS, who collects the levies on behalf of the Department of Labour.
Member employer company levy payments are set aside in terms of the Skills Development Act, 97 of 1998 for the purpose of:
2003/04 2002/03% %
National Skills Fund contribution 20 20
Administration costs of the SETA 10 10
Employer Grant Fund Levy 60 60Mandatory Workplace Skills Planning Grant 15 15Mandatory Workplace SkillsImplementation Grant 45 45
Discretionary Grants 10 10
100 100
80% of skills development levies are paid over to the SETA (net of the 20% contribut Fund). The SETA could not verify that the SARS has collected all potential skills levy income.
Revenue recognition of levy income represents amounts received and receivable from the Department of Labour. Skills development levy revenue is acknowledged on the accrual basis, except for interest and penalties on the skills development levy, which is recognised when received.
Amounts recognised for skills development levies in respect of Administration (10%), the Employer Grants Fund (60%) and Discretionary Grants (10%) include estimates and accruals for those months levy income not actually received by year-end due to timing delays. These estimates are based on an extrapolation of the levies received for the year, for 3 months of the current fi nancial year (2002/03 – 2 months). Changes to prior year estimates are accounted for in revenue in the current period of change.
Initial recognition of levy revenue does not include uncollectable amounts in the estimate. No provision for irrecoverable levies has been made as material amounts owed are owed by the Department of Labour in terms of the Skills Development Levy Act.
46
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
Revenue is adjusted for inter SETA transfers due to employers changing SETAs. Such adjustments are separately disclosed as inter SETA transfers. The amount of the inter SETA adjustment is calculated according to the Standard Operating Procedure issued by the Department of Labour issued June 2001, taking into account that employers cannot claim employer grants within a stipulated period months after the levies have been paid, when the levies are swept to the discretionary fund.
When a new employer is transferred to the SETA, the levies transferred by the former SETA are recognised as revenue and allocated to the respective categories to maintain its original identity, being either to the administration reserve, employer grant reserve or discretionary reserve.
Revenue is disclosed net of Value Added Tax. Refer to Accounting policy XII below on recognition of Value Added Tax.
ii. Funds allocated by the National Skills Fund for Special Projects
The National Skills Fund (NSF) allocates funds in respect of Special Projects to the SETA on an imprest basis (the funds advanced is topped up once the SETA incurs eligible expenses). If eligible expenses are not incurred, the amount advanced to the SETA has to be refunded to the NSF.
Funds transferred by the NSF are accounted for in the fi nancial statements of the SETA as a liability until the related eligible special project expenses are incurred, when the liability is extinguished and revenue recognised.
iii. Donor income
Conditional grants from donor agencies or individuals are recognised as revenue when received, and where it is probable that the conditions will be met.
However, - if it is probable that a condition will be breached and the asset be returned, or, - if it is equally probable that the condition will be met or breached and the asset be returned, then a liability is recognised. In these circumstances, once the conditions have been met, the liability is
extinguished and revenue recognised.
iv. Interest income
Interest is recognised on a time proportion basis as it accrues, unless collectability is in doubt.
III. Grants
i. Grant categories
A registered company may recover a minimum of 70% of its total levy payment by complying with the following grant criteria in accordance with the Skills Development Regulations of 22 June 2001:
• Mandatory Workplace Skills Planning Grant: The employer has submitted an application for a grant in the prescribed form within the agreed upon cut-off period (Mandatory Workplace Skills Planning Grant) which grant must be equivalent to 15%
47
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
of the total levies paid by the employer during the fi nancial year; and
• Mandatory Workplace Skills Implementation Grant:
The employer has submitted an application for a grant in the prescribed form within the agreed upon cut-off period. (Mandatory Workplace Skills Implementation Grant) which grant must be equivalent to 45% of the total levies paid by the employer during the fi nancial year; and
• Discretionary Grants:
A SETA may out of any surplus monies determine and allocate discretionary grants to employers, education and training providers and workers of the employers who have submitted an application for a discretionary grant in the prescribed form within the agreed upon cut-off period. The total pool for discretionary grants is made up out of 10% of the total levies paid by the employers, plus levy grants that are not claimed by employers, the surplus of administration levies not utilised to fund administration costs, investment income, other income generated by the SETA etc. (refer to accounting policy IV (iv)).
The SETA uses its discretion as set out in the Regulations to allocate discretionary grants. These discretionary grants are approved by the SETA before the relevant training programme, initiative, or research commences. This results in a signifi cant lapse of time between the time when grant payments are approved and the time when grant payments become payable.
ii. Provisions for grants
a. Mandatory employer grants:
Mandatory Workplace Skills Planning Grant:
This grant is recognised once the specifi c criteria set out in the regulations to the Skills Development Act, 97 of 1998 has been complied with by member companies and such compliance has been approved by SETASA.
Mandatory Workplace Skills Implementation Grant:
Based on criteria set out in the regulations to the Skills Development Act, 97 of 1998, the legal obligation to allocate the Mandatory Workplace Skills Implementation Grant only arises once the employer has submitted an application for a grant in the form prescribed in Annexures to the Regulations. However, as confi rmed with the Department of Labour on 10 June 2003, the intention with the skills development legislation pertaining to the Mandatory Workplace Skills Implementation Grant has been to implement training initiatives, and the applicable regulations were amended with Regulation 344, published in the Government Gazette No 24967 of 7 March 2003. Therefore the obligating event to disburse the grant is the actual training and implementation that is taking place at certain employers during the fi nancial year.
In addition to applications received, approved and disbursed before year-end, a provision is therefore also made for the disbursement of the Mandatory Workplace Skills Implementation Grant based on training plans implemented by certain employers during the year under review, where a reliable estimate can be made of the amount of grant applications that would probably be received, approved and disbursed. The measurement of this obligation involves an estimate, based on the established pattern
48
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
of past practice of payment of this type of grant, supported by the history built up over the past three years.
b. Discretionary grants:
No provision is made for discretionary grants payments that have been approved at year-end, unless a contractual obligation existed. Such amounts are however disclosed as committed funds in the notes to the fi nancial statements.
c. Retrospective adjustments by SARS:
SARS collects relevant levies from employers, of which the SETA receives 80%. The SETA refunds amounts to employers in the form of grants, based on information from SARS. Where SARS retrospectively amends the information on levies collected, it means that:
• Grants may have been paid to certain employers that are in excess of the amount the SETA is fi nally able to grant to employers. A receivable relating to the overpayment to the employer in earlier periods is raised at the amount of such grant overpayment.
• Grants are still due to employers and the provision for such amounts due, are raised.
The SETA has a legal right to set off a receivable for the recovery of an overpayment due by an employer against the provision for grant payments to that employer.
Provision for doubtful debt is made for doubtful receivables based on a review of outstanding amounts at year-end. Bad debts are written off in the year in which they are confi rmed.
The full amount of the SARS retrospective adjustment does not only relate to grant overpayments to employers, but also consists of a part which was retained by the SETA. A loss is not separately recognised, but current year levy income is affected on a net basis.
IV. Reserves
i. Unappropriated surplus
Section 53 (3) of the Public Finance Management Act, 1999 (Act No. 29 of 1999) as amended requires that a SETA may not accumulate surpluses unless the prior written approval of the National Treasury has been obtained.
There is a time delay of approximately eighteen months to two years before the SETA has granted funds back to employers or entered into contractually binding agreements where grants become payable to employers, workers of employers and other education and training providers. It is therefore impracticable to transfer the surplus of a specifi c year to National Treasury where these funds would be spent in the short to medium term.
The following policies have been adopted in the preparation of the fi nancial statements:
While the balance of the unappropriated reserve will be nil, it is used to demonstrate the allocation of various surplus funds.
49
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
Disclosure of contingent liability for all reserves
National Treasury may request all surplus funds to be transferred in terms of section 53(3) of the Public Finance Management Act, 1999 (Act No. 29 of 1999) as amended. A contingent liability is disclosed in the fi nancial statements equalling the total of all the reserves, after the provision for the distribution of the surplus to National Treasury have been taken into account.
ii. Skills Development Administration Reserve
The SETA can use a maximum of 10% of the skills development levies for administration expenses.
The excess of administration grant levies is transferred to the discretionary reserve to be utilised for special projects and skills priorities.
The amount of the reserve represents administration levies not utilised to fi nance administrative expenses, which has been approved by National Treasury to be accumulated for the next fi nancial year.
iii. Skills Development Employer Grants Reserve
70% of the skills development levies is used for the payment of mandatory and discretionary grants to employers and others.
In principle the SETA has two years after the end of the fi nancial year in which the levies were accounted for, to effect the grant payments to employers.
Employer grant levies not utilised during the above period are transferred to the discretionary reserve any time before the end of the two years after the end of the fi nancial year in which such grant levies were accounted for. Unutilised amounts not transferred to the discretionary reserve are included in the amount provided to be transferred to National Treasury.
The amount of the Skills Development Employer Grants Reserve represents employer grant levies where:
• Less than two years have expired after the end of the fi nancial year in which the levies were accounted for.
iv. Discretionary Grants Reserve
In principle the SETA has one year after the end of the fi nancial year in which the funds were transferred into the discretionary reserve, to effect the discretionary grant payments. Funds transferred from other reserves gain a new “discretionary” identity when transferred to the discretionary reserve.
The amount of the reserve includes funds where:
• Less than one year has expired after the end of the fi nancial year in which the funds were transferred into the discretionary reserve, or
• Approval has been obtained from National Treasury to accumulate funds to the next fi nancial year, or
• Funds that have been committed to special projects.
50
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
The following types of discretionary funds are included in the reserve:
• Donor income or funds received by the SETAs from the Department of Labour, or any contributor for the sole purpose of carrying out the special projects,
• Surplus of administration levies not utilised to fund administration costs,
• Employer grants levies transferred from the employer grant reserve for discretionary projects,
• Investment income, and
• Other income generated by the SETA.
The discretionary grant reserve is reduced by losses recognised as a result of SARS retrospective adjustment to skills levies.
No provision has been made for discretionary payments that have been approved at year-end, unless a present obligation exist. Such amounts are disclosed as committed funds.
v. Capitalisation reserve
The capitalisation reserve represents an amount equal to the carrying value of assets and liabilities taken over from the former Industry Training Boards. In future reporting periods this Capitalisation Reserve will be reduced by an amount equal to the annual depreciation charge of the assets taken over, until such time as the fund is depleted. On disposal, repayment or recovery, an amount equal to the net book value of disposed assets is transferred to the Administration Fund.
V. Taxation
No provision has been made for taxation, as the SETA is exempt from income tax in terms of Section 10 of the Income Tax Act.
VI. Financial instruments Financial instruments carried on the Statement of Financial Position include cash and cash equivalents, account and other receivables, and account and other payables. Financial assets and fi nancial liabilities are recognised on the Statement of Financial Position when the SETA becomes a party to the contractual provisions of the instrument.
Financial instruments are initially measured at cost, which includes transaction costs. Subsequent to initial recognition these instruments are measured as set out below:
Financial assets
The SETA’s principal fi nancial assets are account and other receivables, and cash and cash equivalents. Account and other receivables are stated at nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Cash and cash equivalents are measured at fair value.
51
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
Financial liabilities
The SETA’s principal fi nancial liabilities are accounts and other payables. Accounts and other payables are stated at nominal value.
VII. Property, plant and equipment
Land is stated at cost and is not depreciated as it is deemed to have an indefi nite life. All other property, plant and equipment are stated at cost less depreciation. Depreciation is calculated on the straight-line basis to write off the cost of each asset to their residual values over their estimated useful life. The annual depreciation rates used are:
• Buildings 5%
• Computer equipment 33,33 %
• Computer software 50 %
• Offi ce furniture and equipment 20 %
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount (i.e. impairment losses are recognised).
Gains and losses on disposal of property, plant and equipment are determined by reference to their carrying amount and are taken into account in determining net surplus/defi cit.
VIII. Cash and cash equivalents
Cash includes cash on hand and cash with banks. Cash equivalents are short term, highly liquid investments that are held with registered banking institutions with maturities of three months or less and that are subject to an insignifi cant risk of change in value.
For the purposes of the cash fl ow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks, and investments in money market instruments, net of bank overdrafts.
IX. Operating lease
Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takesplace.
X. Accounts receivable
Accounts receivable are carried at anticipated realisable value. An estimate is made for doubtful receivables based on a review of all outstanding amounts at the year-end. Bad debts are written off during the year in which they are confi rmed.
Also refer to accounting policy III (ii) c relating to receivables recognised based on retrospective amendments of skills levies by SARS.
52
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
XI. Provisions
Provisions are recognised when the SETA has a present legal or constructive obligation as a result of past events, it is probable that an outfl ow of resources embodying economic benefi ts will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are reviewed at each year-end and adjusted to refl ect the current best estimate.
XII. VAT
The amount refl ected as Value Added Tax due to the South African Revenue Service is in accordance with the dispensation prescribed by the South African Revenue Service on 8 June 2001 and 24 April 2002. In accordance with this Value Added Tax is only calculated and paid over on:
• Skills Development Levy: Administration (10% portion)
• Surplus funds on Employer Grant levy (70% portion) used for projects
The Employer Grant levy (70%) that was previously VAT neutral, becomes VATable when the surplus is used for projects. Therefore the amount of revenue is reduced once the VAT liability is incurred.
The VAT output tax liability is recognised on funds utilised on projects as far as actual project expenditure has been incurred.
A contingent liability is disclosed, calculated on the balance of the surplus of the Employer Grant levy (70%) that is expected to be paid out on projects.
Refer to note 1, 2 and 16.2 where this accounting policy was applied.
XIII. Employee entitlements
i. Short term employee benefi ts
The cost of short-term employee benefi ts is recognised during the period in which the employee renders the related service. Employee entitlements to annual leave and long service leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave and long-service leave as a result of services rendered by employees up to the Statement of Financial Position date. The provision has been calculated at undiscounted amounts based on current salary rates.
ii. Termination benefi ts
Termination benefi ts are recognised and expensed only when the payment is made.
iii. Post employment benefi t costs
The SETA provides for retirement benefi ts for all its permanent employees through a defi ned contribution scheme that is subject to the Pension funds Act, 1956 as amended. In terms of the Pension Funds Act, the fund is not required to be actuarially valued. Contributions are at a rate of 14% of pensionable emoluments of which staff members contribute 7.5%.
53
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
iv. Medical benefi ts
The SETA does not provide for medical benefi ts for its employees. No provision is made for medical benefi ts in the fi nancial statements of the SETA.
XIV. Comparatives
Where necessary, comparative fi gures have been adjusted to conform to changes in presentation in the current year.
54
Tota
l per
St
atem
ent
of F
inan
cial
Pe
rfor
man
ce
R’0
00
Adm
inis
trat
ion
rese
rve
R’0
00
Empl
oyer
gra
nts
rese
rve
Dis
cret
iona
ry g
rant
s re
serv
e
Man
dato
ry
Skill
s Pl
anni
ng
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R’0
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dato
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plen
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on
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R’0
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cret
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R’0
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l
R’0
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Proj
ects
R’0
00
Tota
l Dis
cret
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ry
R’0
00
Tota
l rev
enue
77 2
136
316
10 7
9332
378
7 19
750
368
20 5
2920
529
Levy
inco
me
Adm
in L
evy
inco
me
(10%
)6
451
6 31
2-
--
-13
913
9
Gra
nt L
evy
inco
me
(70%
)51
612
-10
793
32 3
787
197
50 3
681
244
1 24
4C
hang
es in
est
imat
es r
elat
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to
prio
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ar3
878
--
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-3
878
3 87
8
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: pen
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tere
st33
0-
--
--
330
330
Nat
iona
l Ski
lls F
und
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8
584
--
--
-
8 58
48
584
Inve
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354
--
--
-6
354
6 35
4
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com
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--
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-
Tota
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s(5
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8)(5
107
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475
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7 28
5)45
6(3
6 30
4)(1
1 48
7)(1
1 48
7)
Adm
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trat
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expe
nses
(5
107
)(5
107
)-
--
--
-
Nat
iona
l Ski
lls F
und
expe
nses
(
8 58
4)-
--
--
(8 5
84)
(8 5
84)
Empl
oyer
Gra
nts
and
Proj
ect e
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ses
per
Stat
emen
t of F
inan
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Per
form
ance
1.
1(3
9 20
7)-
(9 4
75)
(27
285)
456
(36
304)
(2 9
03)
(2 9
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Cha
nges
in e
stim
ate
rela
ted
to
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774
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(842
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388
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6(1
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-
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t(2
48)
--
--
-(2
48)
(248
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ploy
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anda
tory
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nts
Dis
burs
ed(5
718
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(5 7
18)
--
(5 7
18)
--
Prov
isio
n fo
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ant p
aym
ents
(2
8 81
2)-
(2 9
15)
(25
897)
-(2
8 81
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-D
iscr
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gra
nts
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ed(2
655
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--
--
(2 6
55)
(2 6
55)
Net
sur
plus
per
Sta
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f Fin
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1 20
91
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14 0
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41.
ALL
OC
ATIO
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F N
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UR
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R T
O R
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VES
:
55
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
1.1 Retrospective adjustments by SARS:
During the year under review, SARS advised the SETA of erroneously designated Skills Development Levies received in prior periods, resulting in retrospective adjustments. R402 000 was recognised as a receivable relating to the overpayment to employers in earlier periods, and is based on the amount of such grant over payments. An amount of R248 000 was provided for as doubtful debt.
No loss was separately recognised for the difference between the amount of the retrospective adjustment and the amount that relates to overpayments to employers in prior periods.
An analysis of the SARS retrospective adjustments is as follows:
2003/04R’000
2002/03R’000
Employers’ receivable recognised 402 -
Provision for doubtful debt (248) -
Net effect of SARS Retrospective adjustments 154 -
2. Skills Development Levy Income
2003/04 2002/03
In terms of the Skills Development Act and the Skills Development Levies Act, the following applied during the period under review:
Percentage of payroll payable as a Skills Development Levy 1% 1%
56
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
2003/04R’000
2002/03R’000
The gross levies contributed by member companies i.r.o. the current year is apportioned as follows:
Administration fund (10%) 7 354 6 515
Levy income: Administration 6 312 5 942
Interseta transfers in 167 -
Interseta transfers out (28) -
VAT charged on levy income 903 573
Discretionary Grants (10%) 7 282 5 985
Levy income: Discretionary Grants 7 197 5 985
Interseta transfers in 150 -
Interseta transfers out (65) -
Employer Grants (60%) 44 330 35 911
Levy income: Employer Grants 43 171 35 911
Interseta transfers in 1 382 -
Interseta transfers out (223) -
Withheld by the Department of Labour and paid to the 14 391 12 323
National Skills Fund (20%)
Total gross levies contributed by member companies 73 357 60 734
The total levy income per the Statement of Financial Performance is as follows:
Levy income: Administration 6 451 5 942
Levies received 4 988 4 911
Levies accrued 1 463 1 031
Levy income: Discretionary Grants 7 282 5 985
Levies received 5 614 4 810
Levies accrued 1 668 1 175
Levy income: Employer Grants 44 330 35 911
Levies received 34 323 28 862
Levies accrued 10 007 7 049
Changes in estimates i.r.o. previous year 3 878 -Skills Development Levy income per Statement of Financial Performance
61 941 47 838
57
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
3. National Skills Fund: Special Projects
2003/04R’000
2002/03R’000
Opening balance 6 068 -
Received during the year 10 495 9 810
Interest received 11 4
Utilised and recognised as revenue – conditions met: 8 584 3 746
Skills programmes and curriculum development 2 544 904
Learnerships 4 220 1 424
Advertising, marketing and research 550 191
Administration 1 270 1 227
Closing balance 7 990 6 068
During the current year conditional funds of R10,495m, excluding VAT (2002/03 – R9,810m) were received from the National Skills Fund on 3 March 2004. This amount was recognised as a liability until the conditions attached were met. During the year, R8,584m (2002/03 – R3,746m) eligible project special expenses were incurred and a corresponding amount was recognised as revenue. At year- end, R7,990m (2002/03 – R6,068m) continues to be accounted for as a liability until the remaining conditions attached have been met.
4. Investment Income
2003/04R’000
2002/03R’000
Interest 6 354 5 852
Investment fair value adjustment - 122
6 354 5 974
5. Other Income
Other income comprises:
2003/04R’000
2002/03R’000
Insurance claim received 4 41
58
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
6. Administration Expenses
The following items have been included in administration expenses:
2003/04R’000
2002/03R’000
Depreciation 238 241
Operating lease rentals 47 44
Loss on disposal of property, plant and equipment 15 10
Cost of employment 2 531 2 350
Auditor’s remuneration 141 79
Consultancy and service provider fees 614 49
6.1 Cost of employment
2003/04R’000
2002/03R’000
Salaries and Wages 2 458 2 335
Other salary related cost 73 15
2 531 2 350
Average number of employees14 14
Refer to the Chairman’s report for disclosure concerning the emoluments of executive members.
7. Skills Development Grants Payable
2003/04R’000
2002/03R’000
Opening carrying amount 30 700 25 747
Change in estimate related to the previous year 2 176 -
Amounts utilised (32 876) (25 747)
Additional provisions 1 28 812 30 700
Closing carrying amount 28 812 30 700
The provision for Grants are expected to be paid out within 6 months after year-end. A computation based on historical data was performed to determine the grants to be paid out after the fi nancial year-end.
6.1
59
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
8. Accounts Payable2003/04
R’0002002/03
R’000
Trade and other payables 1 477 48
Provision for disciplinary hearing fees - 500
National Skills Fund special project expenses 2 758 -
4 235 548
9. Value Added Tax
2003/04R’000
2002/03R’000
Closing carrying amount 1 167 1 897
The VAT dispensation on surplus Employer Grant levies is still subject to a fi nal decision by the Ministers of Finance and Labour. The VAT output tax liability on the surplus of Employer Grants Levies utilised for projects has been calculated as far as actual project expenditure has been incurred.
The Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003) commenced on 22 December 2003. Previously, the defi nition of “enterprise” placed SETA’s listed in Schedule 3A within the scope of VAT. The Amendment Act, however, has amended this defi nition of enterprise and effectively places the public entity outside the scope of VAT. Nonetheless, the amended defi nition of enterprise will only come intooperation on a date fi xed by the President in the Government Gazette. There is uncertainty when the amended defi nition will commence, and it is not expected to commence before 1 April 2005, at the earliest.
10. Employee Entitlements
Employee leave provision
2003/04R’000
2002/03R’000
Opening carrying amount 52 52 -
Additional provisions 8 8 52
Closing carrying amount 60 52
60
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
11. Property, Plant And Equipment
Year ended 31 March 2004
CostAccumulated Depreciation
Net Book Value
R’000 R’000 R’000
Land 139 - 139
Buildings 452 (45) 407
Computer equipment 309 (209) 100
Computer software 46 (44) 2
Offi ce furniture and equipment
556 (271) 285
Balance at end of period 1 502 (569) 933
Made up as follows:• Owned assets 1 502 (569) 933
Year ended 31 March 2003
CostAccumulated Depreciation
Net Book Value
R’000 R’000 R’000
Land 139 - 139
Buildings 452 (22) 430
Computer equipment 295 (135) 160
Computer software 46 (35) 11
Offi ce furniture and equipment
557 (168) 389
Balance at end of period 1 489 (360) 1 129
Made up as follows:• Owned assets 1 489 (360) 1 129
61
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
Movement summary 2004
Net book value
Additions Disposals Net bookvalue
2003 2004
R’000 R’000 R’000 R’000 R’000
Land 139 - - - 139
Buildings 430 - - (23) 407
Computer equipment 160 41 (7) (94) 100
Computer software 11 1 - (10) 2
Offi ce furniture and equipment
389 26 (19) (111) 285
1 129 68 (26) (238) 933
Movement summary 2003
Net book value
Additions Disposals Net book value
2002 2003
R’000 R’000 R’000 R’000 R’000
Land 139 - - - 139
Buildings 433 19 - (22) 430
Computer equipment 140 142 (31) (91) 160
Computer software 21 12 - (22) 11
Offi ce furniture and equipment
417 78 - (106) 389
1 150 251 (31) (241) 1 129
Depreciation Charge
Depreciation Charge
62
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
12. Skills Development Levy Debtors
2003/04R’000
2002/03R’000
Admin Levy debtors 1 668 1 175
Discretionary Grant debtors 1 668 1 175
Employer Grant Levy debtors 10 007 7 049Employers’ receivable related to SARS retrospective adjustments
154 -
Overpayment of employer grants 402 -
Provision for doubtful debt (248) -
13 497 9 399
13. Accounts Receivable
2003/04R’000
2002/03R’000
Trade and other receivables 8 9
14. Cash And Cash Equivalents
2003/04R’000
2002/03R’000
Cash at bank and in hand 23 999 16 698
Money market investment 19 816 17 896
Short term bank deposits 41 639 28 297
85 454 62 891
As required in Treasury Regulation 31.2, National Treasury approved the banks where the bank accounts are held. The weighted average interest rate on short term bank deposits was 9.94% (2002/03 – 12.54%).
63
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
15. Reconciliation of Net Cash Flow from Operating Activities to Net Surplus
2003/04R’000
2002/03R’000
Net surplus as per Statement of Financial Performance 24 315 10 430
Adjusted for non-cash items:
Depreciation 238 241
(Decrease) / Increase in provisions (842) 2 731
Investment fair value adjustment - (122)
Adjusted for items separately disclosed:
Investment income (6 354) (5 852) Loss / (Profi t) from disposal of property, plant and equipment
15 (11)
Adjusted for working capital changes:
(Increase) in levy debtors (4 098) (1 891)
(Decrease) / Increase in grants payable (1 888) 4 953
Decrease / (Increase) in accounts receivable 1 (9)
Increase in accounts payable 2 957 1421
Increase in income received in advance 1 922 6 068
Net cash fl ow from operating activities 16 266 17 959
16. Contingencies
16.1 Surplus funds
In terms of the Public Finance Management Act, 1999 (Act No. 29 of 1999) as amended, all surplus funds at year-end may be forfeited to National Treasury.
2003/04R’000
2002/03R’000
Skills Development Employer Grants Reserve - 1 780
Discretionary Fund Reserve (note 17.1) 54 386 28 248
Capitalisation Reserve 529 572
Total funds per balance sheet 54 915 30 600
16.2 VAT on surplus funds on Employer Grant levy (70%) to be used for projects
The Employer Grant levy (70%) that was previously VAT neutral, becomes VATable when the surplus is used for projects. This VAT output tax liability provided in the fi nancial statements (refer to accounting policy XII and note 9 to the fi nancial statements) has been calculated as far as actual project expenditure has been incurred.
64
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
A contingent liability exists for output VAT of R3,143m on the balance of the surplus of the Employer Grant levy (70%) that is expected to be paid out on projects.
16.3 Other
Payments to the amount of R920 892 was made by SETASA during the 2002 and 2003 fi nancial year to a company allegedly without the necessary services rendered. SETASA is in the process of claiming this amount from a former employee. This employee denies all allegations.
SETASA’s attorney is currently waiting for an instruction from SETASA to issue Summons in the High Court. The outcome of this proposed litigation is uncertain and the costs are estimated at R300 000.
17. Commitments
17.1 Discretionary grant reserve
Discretionary grants are not accrued until a contractual obligation exists, even if applications have been approved at year-end. Of the balance of R 54,386m available in the discretionary grant reserve at the end of March 2004, R 32,200m has been approved and allocated for future projects as set out below. Amounts for expenses that have already been contracted or incurred, and therefore included in grant expenses in the Statement of Financial Performance, are also indicated. A request for the accumulation of these funds has been submitted to National Treasury. At the time of compiling the fi nancial statements, no reply had been received.
Approved by Accounting
Authority
R’000
Cumulative Amount utilised at
31 March 2004
R’000
Name of project
Standards Development 4 780 2 376
Learnerships Development 12 953 2 199
Aids Training 2 800 476
ABET Skills Programmes 5 000 9
Relationship skills 1 300 286
SMME Development 1 754 254
Stakeholder Capacity Development 1 130 -
Levy Grant Management System 1 847 867
SSP Research 500 4
SDF 136 136
Total 32 200 6 607
Discretionary grant payments recommended to the Review Committee Phase 1, on 2 April 2004 amounts to R9,607m. R1,902m of this amount was conditionally approved.
65
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSNOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
17.2 Operating Leases
Total of future minimum lease payments under non-cancellable leases:
2003/04R’000
2002/03R’000
Not later than one year 54 50
Later than one year and not later than fi ve years - 54
54 104
The operating lease relates to building premises used for offi ce accommodation in Stellenbosch. The lease agreement was entered into effective 1 October 2002 and will be operational for a period of 30 months, expiring on 31 March 2005. No provision was made for an option to renew the lease on expiry. The rental escalates annually on 1 September with 10%.
18. Financial Instruments
The SETA’s fi nancial instruments consist mainly of cash and cash equivalents, accounts and other receivables, and accounts and other payables. No fi nancial instrument was carried at an amount in excess of its fair value. The following methods and assumptions are used to determine the fair value of each class of fi nancial instrument:
Cash and cash equivalentsThe carrying amount of cash and cash equivalents approximates fair value due to the relatively short-term maturity of these fi nancial assets.
Accounts and other receivablesThe carrying amount of accounts and other receivables, net of provision for bad debt, approximates fair value due to the relatively short-term maturity of these fi nancial assets.
Accounts and other payablesThe carrying amount of accounts and other payables approximates fair value due to the relatively short-term maturity of these fi nancial liabilities.
19. Irregular, Fruitless Or Wasteful Expenditure
To the best of the Accounting authority’s knowledge, no material losses through criminal conduct, or irregular, fruitless or wasteful expenditure were incurred during the year ended 31 March 2004.
66
SECTOR EDUCATION AND TRAINING AUTHORITY FOR SECONDARY AGRICULTURE ANNUAL FINANCIAL STATEMENTSANNEXURE TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2004
ANNEXURE A: RECONCILIATION WITH CASH INFORMATION PER ECONOMICAL CLASSIFICATION
2003/04R’000
2002/03R’000
Cash receipts
Non tax receipts:
SDL: Fines and penalties 330 331
Transfer receipts from: 68 349 55 760
Other governmental units
Skills Development Levy 57 843 45 946
National Skills Fund 10 506 9 814
Other receipts 5 33
Total cash received from operations 68 684 56 124
Cash payments
Compensation of employees
Salaries and wages (2 523) (2 298)
Goods and services (49 895) (35 867)
Total cash expenditure from operations (52 418) (38 165)
Cash generated from operations 16 266 17 959
Cash receipts 6 354 5 974Interest 6 354 5 852Investment fair value adjustment - 122
Net cash infl ow from operating activities 22 620 23 933
Cash fl ow from investing activities (57) (209)Cash receipts on sale of capital assetsOther capital assets 11 42
Cash payments on capital assets (68) (251)Buildings and other fi xed structures
Buildings - (19) Machinery and equipment
Other machinery and equipment (67) (220)
Software and other intangible assets (1) (12)
Net increase in cash and cash equivalents per cash fl ow statement
22 563 23 724
67
9.Thanks
SETASA acknowledges its reliance on strategic partners and would like to acknowledge the support which we received from the following institutions and stakeholders. We would like to record its sincere thanks and appreciation as they were pivotal in the achievements.
The institutions and stakeholders are as follows:
Governing Body of SETASA Sub Committees of SETASA Department of Labour South African Qualifi cations Authority (SAQA)Department of Trade and IndustryDepartment of EducationDepartment of AgricultureShort term ConsultantsGTZ (German Technical Co-operation) Service Providers SETASA staff
68
10. Contact DetailsHead Offi ce: PretoriaPhysical address: 91 Glenwood Road Lynnwood Glen 0081
Postal Address: Private Bag X20003 Garsfontein 0042
Telephone: +27 (12) 365 2827Facsimile: +27 (12) 348 1445Email: [email protected]: http://www.setasa.co.za
Regional Offi ce: Cape TownPhysical Address: Lutzville Building 11 Victoria Street Stellenbosch 7696
Postal Address: P O Box 853 Stellenbosch 7600
Telephone: +27 (21) 886 7155Facsimile: +27 (21) 882 8349
National Skills Fund (NSF) offi ceTelephone: +27 (11) 726 3225Facsimile: +27 (11) 726 6303
Foss
al
Ma
rke
ting
& C
om
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