1. HET PRESENTATION TO THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING (PCHET) PARLIAMENT OF SOUTH AFRICA, CAPE TOWN 07 November 2012

2. HET 2011/12 ANNUAL RESULTS

3. HET STATEMENT OF FINANCIAL PERFORMANCE

4. HET STATEMENT OF PERFORMANCE DESCRIPTION 2011/12 R’000 2010/11 R’000 % INC/(DEC) TOTAL REVENUE691,113560,80423% TOTAL EXPENDITURE(722,930)(476,041)52% SURPLUS/(DEFICIT)(31,817)84,763(138%)

5. HET STATEMENT OF PERFORMANCE  Increase in revenue: Received 8% vs 5% projection for 2011/12 :  Average salary increase in the sector of about 10%;  Wholesale & Retail levy paying companies growth (ex Fuel Retailers) = 12%;  Fuel Retailers contribution = 4.3%

6. HET STATEMENT OF PERFORMANCE  Increase in expenditure:  Mandatory Grants increase – 19%;  Discretionary Grants increase - 123%; ( Total Discr. Grant Exp. = R354m - highest in years) Part of contribution from new Bursary Scheme for 1000 1 st and 2 nd year students = 21%; and the Unemployed Youth Assistance Programme = 35% of expenditure

7. HET STATEMENT OF FINANCIAL POSITION

8. STATEMENT OF POSITION HET DESCRIPTION 2011/12 R’000 2010/11 R’000 NOTE TOTAL ASSETS982,3281,055,6181 TOTAL LIABILITIES100,305 141,778 CAPITAL & RESERVES882,023 913,840 2 NOTE: CASH & CASH EQUIVALENTS965,986 1,042,144 DISCRETIONARY RESERVE877,934911,071

9. STATEMENT OF POSITION HET  Decrease in cash is due to:  Increase in expenditure i.e. Discretionary grants;  Resulting in 5% lower interest income:  Current liability decreases are mainly due to a reduction in payables from non-exchange transactions (73% lower )

10. Number of People Trained = 338 240 (2011/2012) Top Training interventions:  Sales Persons, Assistants and Reps.  Retail Managers / Store Managers  Cashiers – Skilled Workers;  General Admin & Finance  Store Persons (packer, shelve packer, driver)  Office Cashiers, Merchandisers  Debtor’s Clerk and Collector MANDATORY GRANTS Labour

11. MANDATORY GRANTS Labour Companies participating in Mandatory Grants 2011/2012 No of Levy- paying Companies No of Participating Companies Percentage Large45741490% Medium1300102979% Small9, 651654568%

12. MANDATORY GRANTS Labour Mandatory Grants disbursement of R 302m -2011/2012 Mandatory Grant disbursement performance Mandatory grants available Mandatory grants disbursed Percentage LargeR 201mR 191m95% MediumR 58mR 44m76% SmallR 135mR 67m49%

13. MANDATORY AND DISCRETIONARY GRANTS 12 YEARS Labour Total Levies Received R4bn vs Disbursement of R3.6bn Grant disbursement performance Levy ReceivedGrants Disbursed /Allocated Percentage MANDATORYR2.7bnR1.9774% DISCRETIONARYR 901mR1.2bn135% ADMINISTRATIONR503mR452m90%

14. HET SLA ACHIEVEMENTS

15. HET DISCRETIONARY GRANTS  5 876 learners - enrolled on Learnerships (73% NQF Level 2) Target = 1500 ( over achievement due to delayed registration of project approved in the previous year).  2 774 learners Qualified in learning programmes – Target = 1500 – Extra learners are rolled over from the previous year. Completions:  1 986 learners – Learnerships (74% NQF Level 2)  788 learners – Skills Programmes SLA ACHIEVEMENTS

16. HET  The improvement in Mandatory Grants expenditure was due to increased levies and ATRs / WSPs submitted;  ATRS/WSPS from all companies increased from 5 564 (2010/2011) to 7 683 (2010/2012)  ATRs / WSPs from small companies increased (2010/2011) to 6 654 (2010/2012) from 4 444  Increase in small companies due to new Fuel Retailers  SLA ACHIEVEMENTS

17.  Discretionary Grants approved of R 636m -2011/2012  48 Projects approved – Total allocation R803m HET DISCRETIONARY GRANTS

18. CURRENT KEY STRATEGIC PROJECTS HET International Leadership Development Programme (R 13,8m) Objective: accelerate leadership skills of 40 senior managers through exposure to local and international exposure - Achieved = 38 completed Retail Management Development Programme (R 10m) Objective: develop management skills of 200 managers / supervisors. Feeder programme to ILDP Achieved = 207 Registered 2011/12 Discretionary Grant Funding Windows(R 327m) Objective: implement various initiatives (learnerships, AET, rural development, etc.) through grants to 280 stakeholders to benefit 20,000 employed and unemployed learners - Current Status – Registration 31/10/12  14,812 SADDT Disability Project (R30m) Objective: Provide skills development opportunities for 420 people with disabilities - Achieved = 268 Learners registered.

19. HET NSFAS Bursary Scheme (R 185m) Objective: provide financial assistance and workplace experience to 2000 students through NSFAS in response to Minister of Higher Education and Training’s call - Achieved 417 W&RSETA Bursary Scheme (R 153m) Objective: provide financial and workplace experience to 2667 university and FETC in order to address scarce and critical skills in the sector - Achieved – 1000 1 st years registered at HETs; 1667 not achieved - Current status – Registrations – FET = 636; HETs = 646  1009 Registrations (after 31/03/2012). SMME Voucher System (R 32m) Objective: provide training vouchers to 8 000 SMMEs to implement training interventions to address their specific needs – Achieved – 8 235 CURRENT KEY STRATEGIC PROJECTS

20. HET SMME Support : WSP / ATR : Objective: To assist 7 000 small companies in completing the WSP and ATRs for accessing Mandatory Grants and other SETA programmes – Achieved = 7 683. CURRENT KEY STRATEGIC PROJECTS

21. HET AG’s REPORT

22. AUDITOR – GENERAL’s REPORT Qualified opinion – Confirmation of the completeness and accuracy of the balance of contracted grant commitments HET 2011/12 ANNUAL REPORT

23. Emphasis of Matter:  Predetermined Objectives;  Usefulness of information;  Compliance with laws and regulations;  Internal Control. HET 2011/12 ANNUAL REPORT

24. CHALLENGES/OPPORTUNITIES HET  Poor participation by companies particularly SMMEs leading to high cash reserves;  Availability of workplaces to host learners and unemployed graduates;  Establish sustainable partnerships with all relevant stakeholders;  Rural development initiatives;  Lack of W&R programmes in FET and HET institutions;

25. HET Thank You