1 WELCOME Back Isett Seta Briefing Session to The Parliamentary Portfolio Committee on Labour 11 th November 2005 Mr. Oupa Mopaki Chief Executive Officer

2INTRODUCTION The following presentation provides insight into the Isett Sector which comprises of the following sub-sectors: Information Systems (IT) Telecommunication Technologies Electronics

3 TABLE OF CONTENT NSDSNSDS 2001 – 2005 ACHIEVEMENTS SECTORSECTOR SKILL PLANNING (SSP) LEARNERSHIPSLEARNERSHIPS EDUCATIONEDUCATION AND TRAINING QUALITY ASSURANCE (ETQA) MARKETINGMARKETING & COMMUNICATIONS RURALRURAL ACCESS PARTNERSHIPSPARTNERSHIPS FINANCIALSFINANCIALS CHALLENGESCHALLENGES SLIDE NUMBER SLIDE NUMBER:

4 NSDS 2001 – 2005 ACHIEVEMENTS Indicator 1.1 – Number of Workers at NQF 1 –As at March 2005, 95% (baseline = 201,400) of employees in the Isett sector had a qualification higher than NQF Level 1 on the National Qualifications Framework. Indicator 1.2 – Number of workers on structured learning programmes –As at March 2005, 63% (127,675) of employees in the Isett sector had been scheduled for structured skills development programmes. WSPIRs were due on the 30 th April Indicator 1.3 – Number of enterprises that achieved National Standard of People Development –As at March 2005, 13 enterprises have committed and were starting to implement Investors In People (IIP). Only one enterprise had already achieved the Standard. Back

5 NSDS 2001 – 2005 ACHIEVEMENTS Indicator 2.1 – Number of large enterprises that received skills development grants –As at March 2005, 104 enterprises with more than 150 employees were claiming grants. This represents 100% participation. Indicator 2.2 – Number of medium enterprises that received skills development grants –As at March 2005, 152 enterprises in the Isett sector employing between 50 and 149 employees were claiming grants. This represents 100% participation. Indicator 2.3 – Number of Learnership Qualifications available to workers in sector –As at March 2005, 15 Learnership Qualifications were registered and made available across the Isett sector. Back

6 NSDS 2001 – 2005 ACHIEVEMENTS Indicator 3.1 – Number of small enterprises that received skills development support –As at March 2005, 4.5% of companies with 1-49 employees are participating in the Skills Development Initiatives. Large businesses were encouraged to assist small businesses with skills development as well. Indicator 5.1 – Number of unemployed young people that entered Learnerships –As at March 2005, Learners, of which 6395 were under the age of 30, have entered Isett Seta funded Learnerships and have completed those Learnerships. Number of learners on Learnerships that were placed in employment –As at March 2005, 1,546 of Learners have completed Learnerships while 894 have been permanently placed, and 600 are studying further, 52 unemployed. Back

7 SECTOR SKILLS PLANNING (SSP)

8 LEVY PAYING COMPANIES BY SIZE COMPANY SIZECOMPANIESTOTAL % % % % Total % Back

9 EMPLOYEES BY COMPANY SIZE TOTAL EMPLOYEES COMPANY SIZEPOPULATION% OF TOTAL , % , % >150138, % TOTAL212, % Back

10 COMPANY PARTICIPATION

11 EMPLOYEE PROFILE

12 SCARCE SKILLS Description/category of scarcity identified Related occupation Projected need over next 2 years Learning programme to address scarcity 1.IT Technical Support (Hardware and Networking) 2.IT System Development (Software Development incl. database) Physical and Engineering Science Technicians (Isett and Non- Isett) Isett = Non-Isett= Skills programmes, internships and learnerships 3. Telecommunication Technology 4. Electronics (Dev. and Maintenance) Electrical and Electronic equipments mechanics and fitters (Isett and Non- Isett) Isett = Non-Isett= Skills programmes, internships and learnerships Back

13 SCARCE SKILLS - Cont. 5. Project ManagementProject Management (Isett & Non-Isett) Isett = Non-Isett =1 132 Skills programmes and learnerships 6. Venture Creation (Entrepreneurship) Business Professionals (Isett & Non-Isett) Isett = 565 Non-Isett =1 083 Skills programmes and learnerships 7. End User ComputingAdministrative Support Staff (Isett & Non-Isett) Isett =1 123 Non-Isett =2 925 Short course

14 LEARNERSHIP

15 LEARNERSHIP HIGHLIGHTS Target of achieved and exceeded by 192% (3 231) learners in Learnership Programmes (90% are 18.2 under 30 years) –23% have successfully completed, of which 58% are Employed or Self-employed –99.2% are Black, 43.1% Female, while 5.4% are people with Disabilities –R222 million invested towards implementation

16 BENEFICIARIES 6,731

17 HIGH LEVEL ICT SKILLS Target BSc graduates 470 learners trained in high level skills (Internships) –57% completed training and have graduated, of which most are employed with various companies –43% are in progress –93% are Black, 44% Female

18 EDUCATION & TRAINING QUALITY ASSURANCE (ETQA)

19 REGISTERED QUALIFICATIONS Title of QualificationNQF LevelNumber of Credits National Certificate: Telecommunications for Customer Premises Equipment 2120 National Certificate in Telecommunications for Customer Premises Equipment 3135 National Certificate: Telecommunications for Customer Premises Equipment 4152 National Certificate: Information Technology: Technical Support 4163 National Certificate: Information Technology: Systems Development 4178 National Certificate: Information Technology: Systems Support 5147

20 REGISTERED QUALIFICATIONS Cont. Title of QualificationNQF LevelNumber of Credits Masters Degree in Engineering – Telecommunications Engineering 7180 Masters Degree in Engineering - Information Engineering 7180

21 ACCREDITATION CategoryDescriptionNumber Of SMME Accredited Training Providers Full AccreditationProvisional Accreditation Small & Micro Medium Large10 Total199 There were 450 applicants assisted to acquire accreditation

22 ASSESSORS & MODERATORS Number Of Registered Assessors & Moderators as at March 2005 AssessorsModerators 546

23 MARKETING & COMMUNICATIONS

24 MARKETING & COMMUNICATIONS Events –Road Shows –Exhibitions Graduations Media Releases (Print & Visual) Publications & Broachers Website

25 RURAL ACCESS To ensure rural coverage, the following Learnerships projects have been implemented: Limpopo (Mogalakwena i-Community Presidential Project) Free State (Qwaqwa FET Colleges) North West (Klerksdorp, Rustenburg) Northern Cape (Upington, Kimberley) Other Projects: Train the trainer IT Facilitator programme (Limpopo, North West, Mpumalanga, Northern Cape and Free State)

26 PARTNERSHIPS Mpumalanga Provincial Government (Premier’s Office) North West Provincial Government (Premier’s Office) Free State Provincial Government (Premier’s Office) Eastern Cape Provincial Government (Premier’s Office) Gauteng Provincial Government (Premier’s Office) KwaZulu Natal Provincial Government (Smart Exchange) Limpopo Provincial Government and Hewlett Packard State IT Agency (National) Department of Public Works (Expanded Public Works Programme)

27 FINANCIALS

28 ANNUAL FINANCIALS & AUDIT RESULTS Back ItemR’000 SDL IncomeR210,345 Total Investment IncomeR16,395 Total revenueR265,981 Total ExpensesR245,313 Expenses as Percent of SDL Income =99% Net surplus / (deficit)R20,668 Total Cash & Cash EquivalentsR168,615

29 COMMITTED FUNDS AND PROJECTS The funds will be utilised as follows: –R m will be used for Grant payments. –R68.615m will be used for Learnerships commitments. Back

30 ANNUAL FINANCIALS & AUDIT RESULTS Back FINDINGSACTION PLANDUE DATES Treatment of VAT We have requested an extension of two months from SARS for the final submission of the Vat. The extension is from 30 September 2005 to 30 November 2005.A firm of consultants was engaged to look at the entire VAT treatment of the Grants system from the inception of the Isett to date 30 th November 2005 Unrecorded Liabilities We have put in place the discipline of closing off the system and cutting off properly to the next period. 30 th November 2005 Grant Overpayment We will put in place a process that will ensure that the completeness of revenue is assured on a monthly basis. 30 th November 2005 The final audit report is a disclaimer of opinion report. The major issues that brought about this disclaimer are:

31 ANNUAL FINANCIALS & AUDIT RESULTS Cont. FINDINGSACTION PLANDUE DATES Fundamental Error We will ensure full compliance with AC111 on Revenue recognition. Whereas previously revenue was accounted for on a cash basis we have now switched to the accrual basis of recognition. 30 th November 2005 NSF Projects. A separate set of general ledger accounts has been set up in order to account for NSF projects separately from Isett accounts. Thus all SLA’s signed with the vendors will now distinguish between the Isett and the NSF obligations and payments will be split accordingly between the two. 30 th November 2005 Opening Balances The discipline has already been put in place to close off the system (Great Plains) every month and do proper cut-offs from month to month. 30 th November 2005 Fixed Assets Fixed Assets register will be updated to ensure full compliance with Companies Act and PFMA 30 th November 2005 NB: The Isett Seta Performance Management System is also utilized to address the findings.

32 KEY CHALLENGES FOR Funding for progressing all learners from NQF level 4 to 5 Implementation of ICT Learnerships in far rural areas Acquiring more funding from the NSF Financial constraints in establishing offices in all provinces (DoL initiative, SITA partnership) Achieving a clean audit Back

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