1 WELCOME Back Isett Seta Annual General Meeting 31 March 2006 Mr. Oupa Mopaki Chief Executive Officer.

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WELCOMEWELCOME

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Isett Seta Annual General Meeting

31 March 2006

Mr. Oupa Mopaki Chief Executive Officer

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INTRODUCTIONINTRODUCTION

The presentation today will provide insight into the performance and achievements of the Isett Seta for the financial year 2004 – 2005. It will outline the following:

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PRESENTATION OUTLINEPRESENTATION OUTLINE

• NSDS 2001 – 2005 ACHIEVEMENTS NSDS 2001 – 2005 ACHIEVEMENTS

• SECTOR SKILL PLANNING (SSP)SECTOR SKILL PLANNING (SSP)

• LEARNERSHIPS LEARNERSHIPS

• EDUCATION AND TRAINING QUALITY ASSURANCE (ETQA)EDUCATION AND TRAINING QUALITY ASSURANCE (ETQA)

• MARKETING & COMMUNICATIONSMARKETING & COMMUNICATIONS

• RURAL ACCESS RURAL ACCESS

• PARTNERSHIPSPARTNERSHIPS

• FINANCIALS FINANCIALS

• CHALLENGESCHALLENGES

SLIDE NUMBERSLIDE NUMBER: 3 4 5 6 7 8 9 10 11 12 13 14 15

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NSDS 2001 – 2005 NSDS 2001 – 2005 ACHIEVEMENTSACHIEVEMENTS

• 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 30th April 2005.

• 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.

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NSDS 2001 – 2005 NSDS 2001 – 2005 ACHIEVEMENTSACHIEVEMENTS

• 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.

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NSDS 2001 – 2005 NSDS 2001 – 2005 ACHIEVEMENTSACHIEVEMENTS

• 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, 6 731 Learners, of which 6395 were under the age

of 30, have entered Isett Seta funded Learnerships and 1 546 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.

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SECTOR SKILLS PLANNING

(SSP)

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LEVY PAYING COMPANIES LEVY PAYING COMPANIES BY SIZEBY SIZE

COMPANY SIZE COMPANIES TOTAL %

1 - 49 4357 94.5%

50 - 149 152 3.3%

150+ 104 2.2%

Total 4613 100.0%

Source: On-line Grant System

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EMPLOYEES BY EMPLOYEES BY COMPANY SIZECOMPANY SIZE

TOTAL EMPLOYEES

COMPANY SIZE POPULATION % OF TOTAL

1 - 49 50, 456 23.8%

50 - 149 23,108 10.9%

>150 138, 436 65.3%

TOTAL 212, 000 100.0%Source: SSP Document (based on findings in SAITIS Study)

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COMPANY PARTICIPATIONCOMPANY PARTICIPATION

Company Size

Levy Paying

# Supported%

Participation

1 - 49 4357 196 4,5%

50 - 149 152 152 100%

150+ 104 104 100%

Source: On-line Grant System and Project records

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EMPLOYEE PROFILEEMPLOYEE PROFILE

African55%

Coloured8%

Asian14%

White23%

Source: ICT Skills Audit

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SCARCE SKILLSSCARCE 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

316 369(Isett and Non-Isett) Isett = 116 659Non-Isett=199 710

Skills programmes, internships and learnerships

3. Telecommunication Technology

4. Electronics (Dev. and Maintenance)

Electrical and Electronic equipments mechanics and fitters

181 550(Isett and Non-Isett)Isett = 68 296Non-Isett=113 254

Skills programmes, internships and learnerships

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Source: ICT Skills Audit

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SCARCE SKILLS - Cont.SCARCE SKILLS - Cont.

5. Project Management Project Management

2 232(Isett & Non-Isett)Isett = 1 100Non-Isett =1 132

Skills programmes and learnerships

6. Venture Creation (Entrepreneurship)

Business Professionals

1 648 (Isett & Non-Isett)Isett = 565Non-Isett =1 083

Skills programmes and learnerships

7. End User Computing Administrative Support Staff

4 048(Isett & Non-Isett)Isett =1 123Non-Isett =2 925

Short course

Source: ICT Skills Audit

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LEARNERSHIP

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LEARNERSHIP HIGHLIGHTSLEARNERSHIP HIGHLIGHTS

• Target of 3 500 achieved and exceeded by 192% (3 231)

• 6 731 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

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BENEFICIARIESBENEFICIARIES

2955

2687

358416

156

363 39 0 35

16 3

3469

2898

364

0

500

1000

1500

2000

2500

3000

3500

Male Female Disabled

6,731

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HIGH LEVEL ICT SKILLSHIGH 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

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EDUCATION & TRAINING QUALITY

ASSURANCE(ETQA)

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REGISTERED QUALIFICATIONSREGISTERED QUALIFICATIONS

Title of QualificationNQF Level

Number of Credits

National Certificate: Telecommunications for Customer Premises Equipment 2 120

National Certificate in Telecommunications for Customer Premises Equipment

3 135

National Certificate: Telecommunications for Customer Premises Equipment 4 152

National Certificate: Information Technology: Technical Support 4 163

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REGISTERED QUALIFICATIONS REGISTERED QUALIFICATIONS Cont.Cont.

Title of QualificationNQF Level

Number of Credits

National Certificate: Information Technology: Systems Development 4 178

National Certificate: Information Technology: Systems Support 5 147

Masters Degree in Engineering – Telecommunications Engineering 7 180

Masters Degree in Engineering - Information Engineering 7 180

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ACCREDITATIONACCREDITATION

Category Description Number Of SMME Accredited Training

ProvidersBEE Status

Full Accreditation

Provisional Accreditation

African White

1 - 49 Small & Micro

16 7 9 14

50 -149 Medium 2 2 2 2

150+ Large 1 0 1

Total 19 9There were 450 applicants assisted to acquire accreditation

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ASSESSORS & MODERATORSASSESSORS & MODERATORS

AssessorsGender Race

Male Female African Indian Coloured White

35 19 7 6 17 24

Total 54

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ASSESSORS & MODERATORSASSESSORS & MODERATORS

ModeratorsGender Race

Male Female African White Coloured Indian

3 3 - 4 1 1

Total 6

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MARKETING & COMMUNICATIONS

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MARKETING & MARKETING & COMMUNICATIONSCOMMUNICATIONS

• Events– Road Shows– Exhibitions

• Graduations • Media Releases (Print & Visual)• Publications & Broachers• Website

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RURAL ACCESSRURAL 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)

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PARTNERSHIPSPARTNERSHIPS

• 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)

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FINANCIALS

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ANNUAL FINANCIALS & AUDIT ANNUAL FINANCIALS & AUDIT RESULTSRESULTS

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Item R’000

•SDL Income R210,345

•Total Investment Income R16,395

•Total revenue R265,981

•Total Expenses R245,313

•Expenses as Percent of SDL Income =99%

•Net surplus / (deficit) R20,668

•Total Cash & Cash Equivalents R168,615

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COMMITTED FUNDS COMMITTED FUNDS AND PROJECTSAND PROJECTS

• The funds will be utilised as follows:– R100.000m will be used for Grant payments.

– R68.615m will be used for Learnerships commitments.

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ANNUAL FINANCIALS & AUDIT RESULTSANNUAL FINANCIALS & AUDIT RESULTS

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FINDINGS ACTION PLAN DUE 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

30th November 2005

Unrecorded Liabilities

We have put in place the discipline of closing off the system and cutting off properly to the next period.

30th 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.

30th November 2005

The final audit report is a disclaimer of opinion report. The major issues that brought about this disclaimer are:

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ANNUAL FINANCIALS & AUDIT RESULTSANNUAL FINANCIALS & AUDIT RESULTSCont.Cont.

FINDINGS ACTION PLAN DUE 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.

30th 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.

30th 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.

30th November 2005

Fixed Assets Fixed Assets register will be updated to ensure full compliance with Companies Act and PFMA

30th November 2005

NB: The Isett Seta Performance Management System is also utilized to address the findings.

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Status on AG’s Audit Report

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KEY CHALLENGES FOR KEY CHALLENGES FOR 2005 - 20062005 - 2006

• 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

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THANK YOU!!

Please visit our website:

http://www.isett.org.za/