annual report: 2008/09

Annual Report: 2008/09Annual Report: 2008/09

Presentation to the Select Committee on Labour & Public Enterprises

04 November 2009

Presentation to the Select Committee on Labour & Public Enterprises

04 November 2009

Overall ResponsibilityDirector General: Jimmy ManyiOverall ResponsibilityDirector General: Jimmy Manyi

Programme 1: Administration

Communication Financial Management Human Resources Management Information Technology Internal Audit Risk Management Security Services

Programme 2: Service Delivery (SD)

Programme 3: Employment and Skills Development Services / Human Resources Development (ESDS)

Programme 4: Labour Policy and Labour Market Programmes (LP & LMP)

Programme 5: Social Insurance

Unemployment Insurance Fund (UIF) Compensation Fund (CF)

Programmes / Branches of the DoL Programmes / Branches of the DoL 2 2

DoL KEY RESULT AREASDoL KEY RESULT AREAS 3 3

The Ministerial Programme of Action (2004 – 2009) consists of the following Strategic Objectives or Key Result Areas (KRA’s):

KRA 1: Contribution to Employment Creation

KRA 2: Enhancing Skills Development

KRA 3: Promote Equity in the Labour Market

KRA 4: Protecting Vulnerable Workers

KRA 5: Strengthening Multilateral and Bilateral Relations

KRA 6: Strengthening Social Protection

KRA 7: Promoting Sound Labour Relations

KRA 8: Strengthening the Capacity of Labour Market Institutions

KRA 9: Monitoring the Impact of Legislation

KRA 10: Strengthening the Institutional Capacity of the Department

Programme 1: Administration

Programme 1: AdministrationProgramme 1: Administration 5 5

Purpose: Provide for the overall management of the department and for strategic support and advisory services.

Measurable Objectives:

Communication creates awareness about available services in DoL.

Financial Management, Enhance Assets and office administration and supply chain management.

Human Resources Management ensures effective and efficient utilisation of human capital and renders legal services to the department.

Information Technology through the PPP with Siemens caters for the full spectrum of IT needs and requirements of the DoL.


Purpose: Provide for the overall management of the department and for strategic support and advisory services.

Measurable Objectives: (Continued)

Internal Audit provides management and the Audit committee with independent objective assurance that improves effectiveness of governance, risk management and control processes

Risk Management pro-actively manages / addresses risks that have a negative impact on the DoL’ s performance

Security Services renders security support aimed at protecting DoL information, staff and assets


Sub-Programme: Communication

Progress

Stakeholder Relations: Through exhibitions showcased services of DoL in various provinces.

Marketing and advertising: 20 Marketing & advertising campaigns implemented on:

- Worker rights & Human rights, - EE Reporting, - Occupational Health & Safety, - Learnerships for matriculants and unemployed graduates, - Domestic Workers Sectoral Determinations, - Wage increase awareness.

Media Liaison: Profiled the DoL in the electronic & print media through media statements, press conferences & interviews for the Executive & Senior Managers.


Sub-Programme: Human Resources Management

Progress

HR Plan for 2006 – 2009 is in place.

Training & Development: Senior Managers (SMS) participated in Training & Development Programme.

Performance Management: Increased compliance at all levels (SR 1 - 16).

3 Pillars of Employee Health & Wellness implemented:

- HIV/AIDS / TB Management : Promoted Voluntary Counselling & Testing, - Disease Management, - Health and Productivity Management.

Employment Equity: Implementation of EE Plan monitored monthly.


Sub-Programme: Office of the CFO

Directorate: Financial Management

Progress

Held regular audit matters forums to monitor & reduce the level of audit queries for DoL, NSF & Sheltered Employment Factories, INDLELA, CF & UIF.

Annual financial statements prepared according to prescripts.

Budget Advisory Committee provided support to spending units of DoL on Financial Management & Control – Spending was within budget.



Directorate: Financial Liaison – Public Entities

Progress

Implemented enhancements to the Annual Financial Statements for better compliance.

Facilitate submission and analysis of quarterly financial reports.

Identified performance gaps and generated reports for early warnings.

Analysis and capturing of budget information for all SETA’s.

Follow up and support of all critical and struggling Public Entities – Guidance & Feedback.

Capacity building, training and skills transfer to Public Entity Personnel.



Directorate: Office Administration and Supply Chain Management

Progress

Managed office accommodation and Repair Maintenance Program on State owned building through Public Works.

- 9 contracts completed and 4 to be complete in 2010. - Contracts for 12 Sheltered Employment Factories completed. - Bid Process for the HQ Building finalised – work start in 2009.

Document security & archival storage facility improved.

A sub-directorate for Asset Management established – with major asset registers in place for all provinces and Head Office.

Asset registers for IT PPP with Siemens were developed.


Sub-Programme: Office of the CIO

Information Technology

Progress

Policies developed to cover key areas in the IT environment: - Information Systems Security - Network and User Security

An IT disaster recovery plan was approved.

Business Applications deployed:

- Additional functionality & enhancements to current legacy systems at CF. - Additions and enhancements to the EE system. - ESSA rolled out to all Labour Centres and enhancements made for stability & data integrity. - Financial Management Systems for the UIF, CF & NSF initiated.

Operations: Service Delivery for remote areas enabled by providing IT Service to 20 Mobile Labour Centres.


Directorate: Internal Audit

Progress

57 audits scheduled for DoL, NSF & Sheltered Employment Factories – 51 complete, 15 could not be performed due to lack of resources.

42 final audit reports issued.

The audit committee of the departments functions optimally & meets regularly.

A risk management Unit introduced and a risk management plan developed to be managed by senior management.


Directorate: Security Services

Progress

Electronic Security system implemented in high risk KZN.

Several security appraisals and assessments implemented in key provincial offices & labour centres.

Bid to improve CF security at advanced stage.

Contract security procured for various provincial offices & labour centres.

Cases of IT equipment losses reduced by 75% with the introduction of investigations on security breaches & theft of IT equipment.

Officials are paying back the dept the rand value of equipment losses.

Programme 2: Service Delivery

Programme 2: Service DeliveryProgramme 2: Service Delivery 1616

PROGRAMME PURPOSE: Ensure implementation of and compliance with department of labour policies and programmes through monitoring,

evaluation and inspections

ENE 2008/09-2010/11


Increase percentage of registered work-seekers placed in registered employment opportunities to 70% by 2010/11

Assess and refer 10% of work-seekers to identified critical and scarce skills development programmes by 2010/11

Ensure training of 90 000 unemployed people:

- 70% placed in employment through the NSF and SETA’s - 26% of training is accredited by 2010/11

Programme 2: Service DeliveryProgramme 2: Service Delivery 1717

PROGRAMME PURPOSE: Ensure implementation of and compliance with department of labour policies and programmes through monitoring,

evaluation and inspections

ENE 2008/09-2010/11


Reduce workplace related injuries, illnesses and deaths by 2% by 2010/11.

Ensure 75% compliance with labour legislation by inspected workplaces 2010/11.

Promulgate the National Occupational Health and Safety legislation and implement Act by March 2010.

A total of 90% UIF claims processed and paid within 5 weeks.

SUB-PROGRAMMEOUTPUT

PERFORMANCE MEASURES

ACTUAL

1. A single Integrated Employment Services System (ESSA) is rolled out and enhanced to ensure improved access to employment services

1.1 Employment Services system rolled out to all 125 labour centres

1.2 Pilot studies to roll out the six ES offerings to two labour centres: Thohoyandou and Pretoria

1.3 The Resource Centre and Career information and guidance introduced in pilot sites serviced 4 141 clients

1.4 A roving team of 37 staff members trained to provide career guidance and counselling. 13 107 clients counselled and 5 586 were job seekers (Pilot Sites)

1.5 More job-seekers accessed Employment Services and supported, especially through career counselling and assessments, networking with stakeholders, the matching of individuals to opportunities, recruitment and selection to access opportunities

KRA 1: Contribute to Employment CreationKRA 1: Contribute to Employment Creation 1818

SUB-PROGRAMMEOUTPUT


ACTUAL STATUS

1. Increase

percentage

of registered work-

seekers placed in

registered

employment

opportunities to 70%

by 2010/11.

1.1 Registered work-seekers increased by 252 627 in 2008/09

1.2 Placement opportunities registered on database increased by 10 968

1.3 There were 7 553 job opportunities

1.4 Over 421 686 job-seekers were registered on the database compared to 169 059 in 2007/08

1.5 Over 26 332 (22 917 job and 3 415 learning) placement opportunities were registered on the database compared to only 15 364 job opportunities registered in 2007/08

1.6 Over 70% of the registered placement opportunities (65% permanent

employment and 104.9% learning opportunities) were filled compared to

36.3% in 2007/08.

1.7 Total of 18 404 job seekers placed 14 898 (65%) in employment and

3 415 in learning against a target of 15 000 compared to 5 578 in

2007/08.


Provincial BreakdownPO Job

seekers registered

Total job opportunities registered

Learning opportunities registered

Job-seekers placed in employment

Job-seekers placed in learning opportunities

%placed in jobs

%placed in job opportunities

EC 33301 1035 464 1009 464 97% 100%

FS 37832 840 179 780 179 92.8% 100

GN 44454 4944 0 0 10.4% 0

GS 44386 2589 1026 1 026 57.8% 100

KZN 86945 4232 828 828 * 100

LP 39256 1706 215 215 72.6% 100

MP 43961 2072 0 0 * 100

NC 8088 219 20 20 * 100

NW 9160 488 505 505 46% 100

WC 74303 4792 16 178* 14% 0

TOTAL 421686 22917 3 253 3415 65% 104.9%

SUB-PROGRAMMEOUTPUT


ACTUAL STATUS

1. Assess and refer 10% of work-seekers to identified critical and scarce skills development programmes by2010/11

1.1 8 531 registered job-seekers were assessed and 7 343 (86%) were

referred to identified critical and scarce skills development programmes

against a target of 6 000 compared to 17 375 assessed and 13 039

referred in 2007/08

1.2 7 546 (89%) of the 8 531 learners were assessed with the SpEEx

assessment instrument for learnerships, internships, etc.

These were mainly for strategic government job creation initiatives such as Coega, Department of Health contribution to EPWP NYS (data capturers) the EPWP NYS Infrastructure, GTZ ALMS project, the transport and construction sectors


KRA1: Contribute to employment creationKRA1: Contribute to employment creation

PO Target no. registered Job seekers to be assessed

Total no. registered Job seekers assessed

Total no. Referred to identified critical and scarce skills dev. programmes

EC 780 2204 1483

FS 540 1301 330

GN 480 471 431

GS 660 654 2648

KZN 780 1368 1002

LP 540 885 411

MP 660 762 762

NC 480 217 0

NW 540 339 123

WC 540 468 153

TOTAL 6000 8669 7343

SUB-PROGRAMMEOUTPUT


ACTUAL STATUS

1. NSDS 2008-2009 year 4 targets implementation aligned to ASGI-SA implemented.

1.1 Provincial Skills Plans were reviewed to ensure alignment with the

PGDS/IDP/LED and 1 673 projects were identified and listed

1.2 The training programmes in EPWP and the NODES were finalised:

A total number of 10 390 unemployed were trained in support of EPWP at a cost of R36 656 998

A total number of 3 315 unemployed were trained in support of ISRDP at a cost of R15 395 038

A total number of 447 unemployed were trained in support of URP at a cost of R2 907 347

KRA 2: Skills DevelopmentKRA 2: Skills Development 2121

KRA 2: Enhance Skills Development -Training KRA 2: Enhance Skills Development -Training in support of govt. programmes EPWPin support of govt. programmes EPWP

PO No of unemployed trained

Cost of training in Rand in support of EPWP

EC 744 R 5,155,815.00

FS 0 R 0.00

GN 1027 R 6,364,035.00

GS 1378 R 6,711,241.00

KZN 4298 R 7,509,240.00

LP 136 R 161,439.00

MP 0 R 0.00

NC 749 R 1,848,712.00

NW 1144 R 3,724,947.00

WC 914 R 5,181,569

TOTAL 10390 R 36,656,998

KRA 2: Enhance Skills Development -Training in KRA 2: Enhance Skills Development -Training in support of govt. programmes in the NODESsupport of govt. programmes in the NODES


Cost of training in Rand in support of ISRDP

WC Central Karoo 36 R 305,090

MP Bohlabela Cross 0 R 0.00

LP Sekhukhune Cross

0 R 0.00

EC Alfred Nzo 49 R 104,605.00

EC Chris Hani 177 R 896,856.00

EC Ukhahlamba 21 R 107,929.00

EC OR Tambo 1504 R 3,730,066.00

NC Khalagadi Cross 5 R 611,175.00

KZN Ugu 100 R 603,201.00

KZN Umkhanyakude 631 R 3,542,771.00

KZN Umzinyathi 380 R 2,165,265.00

KZN Zululand 412 R 3,328,080.00

FS Thabo Mofutsanyane

0 R 0.00

TOTAL 3315 R 15,395,038

KRA 2: Enhance Skills Development -Training in support of KRA 2: Enhance Skills Development -Training in support of govt programmes in the NODESgovt programmes in the NODES


Cost of training in Rand in support of URP

GS Alexandra-URN1 0 R 0.00

WC Khayelisha-URN6 108 R 1,576,365

WC Michells Plain-URN7

0 R 0.00

EC Motherwell-URN5 100 R 242,699

EC Mdantsane-URN4 132 R 347,043

NC Galeshewe-URN8 107 R 741,240

KZN Inanda-URN2 0 R 0.00

KZN KwaMashu-URN3 0 R 0.00

TOTAL 447 R 2,907,347

SUB-PROGRAMMEOUTPUT


ACTUAL STATUS

1. Employment

Equity

implementation and

enforcement

mechanisms in

place

1.1 20 provincial staff members on the project are capacitated to enforce Employment Equity Act (EE Act) and 74 employers were subjected under the EEA DG review

1.2 12 514 EE designated employers were identified to enforce procedural compliance and only 9 723 were inspected and 8 112 (83%) complied within 90 days of inspection against a target of 10 000 compared to 8 475 inspected and 6 881 (81%) complying at the end of March 2008.

1.3 There is noticeable increase in the capacity to monitor and enforce EE procedural compliance.

Although the target set was missed by 277, over 1 248 more EE designated employers were inspected and over 2% more compliance achieved compared to 2007/08

KRA 3: PROMOTE EQUITY IN THE WORKPLACEKRA 3: PROMOTE EQUITY IN THE WORKPLACE 2222

KRA 3: Promote Equity in the Work PlaceKRA 3: Promote Equity in the Work Place

PO Total number of designated employers (identified within respective Province)

Total no of designated employers inspected

Total no complying procedurally within 90 days

%

EC 180 124 121 98%

FS 1000 1497 1350 90%

GN 1000 1493 1092 73%

GS 1244 1044 867 83%

KZN 4289 2362 2047 87%

LP 843 560 467 83%

MP 637 948 817 86%

NC 908 506 366 72%

NW 1050 371 282 76%

WC 1363 818 703 86%

TOTAL 12514 9723 8112 83%

SUB-PROGRAMMEOUTPUT


ACTUAL STATUS

1. At least 180 000 workplaces are inspected and 80% compliance levels achieved within 90 Days of inspection

1.1 The compliance level increased by 5% from 78% in 2007/08 to 83% in

2008/09 although the total number of workplaces inspected decreased by

46 968 from 200 665 in 2007/08 to 153 697 in 2008/09

1.2 The volume of workplaces inspected and the optimal utilisation of

resources remains a challenge

1.3 To monitor and enforce compliance, a total of 23 297 undertakings,

1 225 improvement notices, 9 908 contravention notices, 1 255 prohibition

notices and 2 251 compliance orders were issued

KRA 4: PROTECTING VULNERABLE WORKERSKRA 4: PROTECTING VULNERABLE WORKERS 23 23

KRA 4 : Protect Vulnerable WorkersKRA 4 : Protect Vulnerable Workers

Province s

Total number of inspectors

Total workplaces inspected

Undertakings Notices Compliance orders

No of employer complying within 90 days

% compliance within 90 days

Improvement

Contravention

Prohibition

EC 71 17144 1 911 22 800 54 520 14743 86%

FS 61 12509 1 803 21 329 45 93 11174 89%

GN 73 22892 1 961 252 997 151 9 18827 82%

GS 115 19369 1 145 237 986 287 535 16076 83%

KZN 127 27113 3 202 138 2 886 235 328 22272 82%

LP 59 10034 1 874 45 619 34 50 7064 70%

MP 60 11813 1 418 171 927 149 21 10532 89%

NC 30 6169 1 090 127 1 069 54 15 4655 75%

NW 57 10285 3 621 140 786 215 317 8052 78%

WC 93 16369 5 272 72 509 31 363 11923 73%

TOTAL 746 153697 23 297 1 225 9 908 1255 2251 125318 82%

SUB-PROGRAMMEOUTPUT


ACTUAL STATUS

1. Coordinate and

monitor the

investigation and

settlement of

reported labour

complaints/disputes

to ensure 80%

settlement rate

within 90 days.

1.1 A total of 178 863 (79%) of the 226 297 labour complaints received

were investigated and finalised within 90 days against a target of 80%

compared to 173 057 (79%) of the 220 191 complaints received finalised.

1.2 The 80% target was missed by 1%, however over 6 106 more

complaints were received and over 5 806 more complaints were finalised

compared to 2007/08 although the percentage settlement remains the

same at 79%.


SUB-PROGRAMMEOUTPUT


ACTUAL STATUS

1. Ensure that at least 2 000 of reported OHS incidents are finalised within 90 days as per directives.

1.1 A total of 2 956 (56%) of the 5 326 OHS incidents reported were

investigated and finalised within 90 days against a target of 2 000



PO Reported OHS incidents

Total OHS incidents investigated

Total number of complaints settled within 90 days

%

EC 177 145125

71%

FS 227 227191

84%

GN 346 265231

67%

GS 413 9532

8%

KZN 2 749 2 6271424

52%

LP 141 5413

9%

MP 151 147142

94%

NC 30 379

30%

NW 305 226231

76%

WC 787 682558

71%

TOTAL 5 326 4 505 2 956 56%

SUB-PROGRAMMEOUTPUT


ACTUAL STATUS

1. Targeted advocacy and blitz inspections to inspect at least 10 000 workplaces and to decrease work place incidents in the High Risk Industries by at

1.5 Advocacy and blitz inspections programme developed targeting high

risk industries and 10 285 inspections were conducted:

Construction - 2 458, Iron and Steel - 2 449, Food and Beverage - 2 701, Agriculture - 2 677

against a target of 10 000



PO Blitz inspections

Construction Iron & steel Food % bev Agriculture

EC 4 249 197 187 581

FS 4 119 203 192 329

GN 4 70 44 204 79

GS 4 248 135 139 68

KZN 4 761 707 700 354

LP 4 187 356 278 244

MP 4 437 313 325 313

NC 4 167 205 365 390

NW 4 112 197 225 259

WC 4 108 92 86 60

TOTAL 4 2 458 2 449 2 449 2 677

Programme 3: Employment and Skills Development Services

and Human Resources Development

(ESDS)

Programme 3: Employment and Skills Development 31Programme 3: Employment and Skills Development 31Services / Human Resources Development Services / Human Resources Development (ESDS)(ESDS)

PROGRAMME PURPOSE: Contribute to employment creation and skills development by promoting and monitoring the achievement of the objectives

of the National Skills Development Strategy (NSDS) and the National Human Resource Development Strategy

ENE 2008/09-2010/11


Develop the skills of work-seekers by training 90 000 unemployed persons placing 70% in employment for NSF Projects and for SETA’s (Learners in critical skills)

Provide skills development support through National Skills Fund (NSF) and Sector Education and Training Authority (SETA) funding to SMMEs, NGOs and co-operatives

Programme 3: Employment and Skills Development 32 Programme 3: Employment and Skills Development 32 Services / Human Resources Development Services / Human Resources Development (ESDS(ESDS)

ENE 2008/09-2010/11


Provide top-up funding to SETAs, the National Student Financial Aid Scheme (NSFAS) and the National Research Foundation to assist 26 000 unemployed learners to enter scarce and critical skills programmes in learnerships, apprenticeships, internships, bursaries and skills programmes

Provide funding through partnerships with Umsobomvu Youth Fund and the Small Enterprise Development Agency (SEDA) to support 3 000 youth in new venture creation projects

Ensure that 70 % of new ventures are sustainable after completion of the programme through training and mentorship

Skills Levies collected and transferred to SETAs and NSF 33Skills Levies collected and transferred to SETAs and NSF 33

Levy Year

2008 /09

Year Collected

April 2008 – March 2009

Total Amount Collected

R

Amount transferred to

SETAs

R

Amount transferred to

NSF

R

Grand Total 7 333 171 049 5 866 536 837 1 466 634 212

SUB-PROGRAMMEOUTPUT

PERFORMANCE MEASURES ACTUAL STATUS

TARGET

1. Number NSDS 2005-2010: Year four targets implementation at INDLELA

1.1 1 200 small BEE enterprise and cooperatives receive skills dev support.

1.2 10 000 people participate in trade tests at INDLELA

1.3 40% pass rate for trade tests

1.4 18 693 artisans registered for training by SETA’s

1.1 2 251

1.2 8 337 assessed 3 392 passed

1.3 41% pass rate

1.4 17 228

KRA 2: Enhance Skills Development KRA 2: Enhance Skills Development 3434

SUB-PROGRAMMEOUTPUT


TARGET

1. Number NSDS 2005-2010: Year four targets implemented through the National Skills Fund (NSF) and Admin Transfers

Achieve NSF strategic projects targets in support of Provincial Growth and Development Strategies

1.1 16 000 unemployed people assisted to enter learning programmes

1.2 8 000 people completed learning programmes

1.3 4 500 undergrad bursaries awarded

1.4 1 500 post grad bursaries were awarded

1.5 40 000 NSF funded/ABET learners recruited and commenced learning programmes

1.1 41 336

1.2 31 003

1.3 1 752

1.4 997

1.5 21 413


SUB-PROGRAMMEOUTPUT


TARGET

1. Number NSDS 2005-2010: Year four targets implemented through the NSF

Sector Education and Training Authorities (SETA’s)

1.1 90 000 unemployed people trained(Training suspended in provinces due to misaligned procurement procedures with DoL procedures – AG query)

1.2 63 000 trained unemployed people placed in employment(Recession resulted in poor job placements)

1.3 400 community based co-operatives receive skills support funded by NSF

1.4 5 865 SMME’s, NGO’s Co-ops and small BEE enterprises receive skills support

1.1 15 169 trained @ R190.5 million

1.2 8 885

1.3 367

1.4 7 601


SUB-PROGRAMMEOUTPUT


TARGET

1. Number NSDS 2005-2010: Year four targets implemented through the Sector Education and Training Authorities (SETA’s)

1.1 44 640 ABET employed people trained

1.2 56 506 workers to be assisted to enter scarce & critical skills in learnerships, apprenticeships, internships & bursaries

1.3 43 316 unemployed people assisted to enter scarce & critical skills in learnerships etc.

1.4 9 088 learners in critical skills (HET & FET institutions) placed for experience locally & internationally

1.5 3 276 youth trained in New venture Creations(Seed capital is a challenge, so is youth inexperience in such ventures)

1.1 40 851 registered 14 221 completed training

1.2 103 293 workers assisted to enter109 270 completed learning

1.3 60 125 unemployed enter skills 63 658 completed

1.4 13 148 placed in work places

1.5 3 900 youth trained475 of the ventures are sustainable


SUB-PROGRAMMEOUTPUT


TARGET


*

1.1 15 139 Sector Development Facilitators & Specialists trained

1.2 3 480 large firms & 4 791 medium firms supported through skills dev.

1.3 25 004 small levy- paying firms supported through skills dev.

1.4 84 govt depts. spend at least 1% of personnel budget on training

1.5 1 406 small BEE and BEE co-ops supported with skills dev.

* 32 companies received Ministerial awards for outstanding contribution to national skills dev.

1.1 18 836 trained

1.2 4 284 large firms 5 670 medium firms

1.3 26 736 small levy-paying firms supported

1.4 65 (77% of the target)

1.5 2 251 supported


SUB-PROGRAMMEOUTPUT


TARGET


1.1 Annual increase of people who benefit from work place skills development support – training for employment & re-employment

1.2 Business Process Outsourcing and Off-shoring (DTI investment incentive programme) implemented.

1.3 R60 million for above programme committed over 3 years & 12 440 workers targeted to benefit

1.1 2 069 more new workers Total 6 156 trainedTotal expenditure: R19,77 million45 SMME’s benefitted

1.2 151 trained 7 applications approved, 1 pending.

1.3 One claim of R1, 596 million paid


SUB-PROGRAMMEOUTPUT


TARGET

1. Number NSDS 2005-2010: Year four targets implemented through the National Skills Authority (NSA) & National Skills Fund (NSF)

1.1 92 provider institutions accredited to deliver New Venture Creation qualification

1.2 Improve the quality of service delivered by skills development institutions

1.3 To improve stakeholder capacity & commitment to the National Skills Development Strategy (NSDS),

NSF availed R20 million to the 18 constituencies of the NSA for capacity building of their members

1.1 138 institutions accredited

1.2 The refined Quality Council for Trades & Occupations (QCTO) policy & establishment of the body

1.3 Only 7 constituency organisations took up the funding offer and 3 263 members benefitted. R12, 210, 554 was disbursed


SUB-PROGRAMMEOUTPUT


TARGET

1. Promoting productivity knowledge, awareness & skills within the non-formal economy

Productivity SA

1.1 26 education and training providers and productivity trainers accredited

1.2 1 800 emerging entrepreneurs trained in productivity improvement competencies

1.3 120 Skills Development Facilitators trained in productivity

1.4 530 managers and workers trained to enhance productivity competencies in public and private enterprises

1.5 120 future forums established at companies with turn around solutions

* (No turn around strategies implemented to prevent job losses due to financial constraints)

1.1 55

1.2 910

1.3 78

1.4 569

1.5 105


SUB-PROGRAMMEOUTPUT


TARGET

1. Improving access to employment opportunities, expand support for entrepreneurial activity and self employment

Umsobomvu Youth Fund

1.1 288 youth advisory centres established (full service points & kiosks)

1.2 38 500 young people acquire skills through the NYS projects

1.3 6 000 unemployed graduates enrolled in training programmes to improve access to employment

1.4 Value of business opportunities sourced is R 830 million

1.5 14 400 jobs created and sustained through SME’s

(Placement in employment difficult & not all UYF projects were approved due to financial constraints)

1.1 151

1.2 34 000

1.3 700

1.4 R 39 667 960

1.5 12 980


SUB-PROGRAMMEOUTPUT


TARGET

1. Promoting and accelerating quality training for all in the work place through the National Skills Fund (NSF)

1.1 Work Place Skills Development Support Programme (WSDSP) implemented with 10% increase of beneficiaries

1.2 90 000 unemployed people trained

1.1 Total workers trained increased to 6 156 (2008/09) from 3 378 (2007/08) = 82% increaseBlack: 88%Female: 38%

45 SME benefitted (53 claims paid ) – Total expenditure R19, 77 million

1.2 Total expenditure: R190 136 millionBlack: 98%Women: 54%People with disabilities (PWD):2%Youth: 61%


SUB-PROGRAMMEOUTPUT


TARGET

1. Promoting and accelerating quality training for all in the work place through the National Skills Fund (NSF)

1.1 400 community based co-operatives supported through skills dev.

1.2 Funding of bursaries in scarce skills – 4 500 undergraduates 1 500 post graduate bursaries awarded

1.1 Total expenditure:R16,2 million (77% of budgeted amount of R21 million)

Blacks: 95%Females:65%Youth: 41%PWD: 4%

1.2 4 869 undergraduate bursaries awarded through the NSFAS

997 post graduate bursaries awarded through the NRF

R531 million grants allocated to the SETA’s


Programme 4: Labour Policy and Labour Market Programmes

(LP & LMP)

Programme 4: Labour Policy and Labour Market 46 Programme 4: Labour Policy and Labour Market 46 ProgrammesProgrammes

PURPOSE: Establish an equitable and sound labour relations environment and promote South Africa’s interests in international labour matters

through research, analysing and evaluating labour policy, and providing statistical data on the labour market,

including providing support to the institutions that promote social dialogue.

ENE 2008/09-2010/11

Measurable Objective:

Improve employment equity by inspecting additional Johannesburg Stock Exchange listed companies each year for substantive compliance with legislation.

Programme 4: Labour Policy and Labour Market 47 Programme 4: Labour Policy and Labour Market 47 ProgrammesProgrammes

Performance Indicator

Past Current Future Projections

2006/07 2007/08 2008/09 2009/10

Percentage of top 100 Johannesburg Securities Exchange (JSE) listed companies assessment for employment equity

6 companies

(6%)

26 companies

(26%)

74 companies

(74%)

Follow up on the 106

In 2009/10 DoL will conduct follow ups on the total 106 companies assessed in the

previous 3 years.

Some companies will be assessed at provincial level as part of building this

capacity in the provinces.

Programme 5: Social Security

Unemployment Insurance Fund (UIF)Compensation Fund (CF)

• Both the CF and the UIF publish their own Annual Reports in terms of the Public Finance Management Act.

Structure of Presentation

Department of Labour

1. Key Issues (Achievements/Challenges)

2. 2008/09 Expenditure Information

3. Auditor-General Report


Vote 15: Labour

2008/09 Expenditure Information

In the Appropriation Statement for Vote 15: Labour for the 2008/09 financial year, expenditure to the value of R1,642 billion is reflected as having been defrayed against the Adjusted Vote of R1,747 billion. This represents an expenditure level of 94% of the Vote.

Expenditure per Main Division of the Vote is recorded as follows:

Main Division Adjusted

Allocation

Expenditure

As at

31 March 2009

%

Administration

Service Delivery

ESDS/HRD

LP&LMP

Social Insurance

R 384 207

R 702 331

R 178 465

R 472 102

R 10 501

R 372 906

R 621 350

R 172 489

R 469 730

R 6 366

97.05%

88.46%

96.65%

99.49%

60.62%

Total R1 747 606 R1 642 841 94%

R’000


National Skills Fund


In the Appropriation Statement for Vote 15: Labour for the 2008/09 financial year, Skills Levies to the value of R7 234 billion were collected and disbursed.

The disbursement of the Levies is recorded as follows:

Details of direct charges against the National Revenue Fund

Adjusted

Allocation

Expenditure

As at

31March 2009

%

Sector Education and Training Authorities (SETA’s)


R5 787 308

R1 446 827

R5 787 308

R1 446 827

100%

100%

Total R7 234 135 R7 234 135 100%

R’000


Sheltered Employment Factories


In the Appropriation Statement for Vote 15: Labour for the 2008/09 financial year, transfers to the value of R102 776 million were made:

The disbursement of the transfers is recorded as follows:

Details of Non-profit Institution Adjusted

Allocation

Expenditure

As at

31March 2009

%

Subsidised Workshops for the Blind

Subsidised Work-centres for the Disabled

R 7 365

R 95 411

R 7 365

R 95 411

100%

100%

Total R102 776 R102 776 100%

R’000


Auditor-General Reports


Vote 15: Labour

Auditor-General Report – Vote 15: Labour

In the Auditor-General’s report for Vote 15: Labour for the 2008/09 financial year, the Auditor-General expressed a qualified opinion.

The basis for the qualified opinion relates to Capital Assets, as well as Public Private Partnership (PPP) Assets.

The Auditor-General recognised that the Department had established an Asset Management Unit however, the audit still revealed the following shortcomings in the management and control of assets and the asset register:

• A number of assets on the asset register were included at incorrect values

• The asset register was not adequately maintained in accordance with the requirements of National Treasury Regulations

• The reconciliation of the prior year balance of R106 million with the asset register submitted for the period ended 31 March 2007 and 2008, was still outstanding.

Auditor-General Report – Vote 15: Labour

In respect of the PPP assets the Auditor-General indicated that the Department does not maintain an adequate asset register in accordance with the requirements of the National Treasury, which resulted in the following significant shortcomings:

• Sufficient an appropriate audit evidence for the adjustment to the prior year closing balance amounting to R14,0 million as disclosed in note 26 to the

financial statements, could not be submitted for audit.

• Not all current year’s additions to the PPP assets were accounted for in the asset register.

Auditor-General Report – NSF

In the Auditor-General’s report for the National Skills Fund for the 2007/08 financial year, the Auditor-General indicated that opinion expressed in respect of the NSF would not be qualified.

The Auditor-General did however raise matters of emphasis relating to the following:

Irregular expenditure as disclosed in note 17 to the financial statements (R648,406,000) was incurred as a result of not following proper tender processes;

As disclosed in note 24 to the financial statements, the corresponding figures for the 31 March 2008 financial statements have been restated as a result of the change in the basis of the financial reporting framework from the modified cash basis to GRAP and GAAP as described in accounting policy note 1 to the financial statements. The effect of the restatement is an increase to the opening accumulated surplus for 31 March 2009 by R42,033,000.


Sheltered Employment Factories

Auditor-General Report – SEF

In the Auditor-General’s report for Vote 16: Labour for the 2008/09 financial year, the Auditor-General expressed a qualified opinion in respect of the Sheltered Employment Factories.

The following Auditor-General based the qualification on the following:

Inventories are carried in the balance sheet at R15.8 million. Included in this amount is direct labour and manufacturing overhead costs of R1.5 million which are allocated to work in progress and finished goods for wood and metal products using an historic allocation rate as the basis. No evidence regarding the assumptions used to calculate the allocation rate could be obtained and therefore the Auditor-General was unable to evaluate these assumptions to be able to determine the accuracy of the calculations. The Sheltered Employment Factories’ records did not permit the application of adequate alternative procedures regarding this inventory. Consequently, the Auditor-General did not obtain sufficient appropriate audit evidence to satisfy himself as to the valuation of wood and metal work in progress and finished goods.

Auditor-General Report – SEF

The Auditor-General also raised matters of emphasis relating to the following:

Irregular expenditure as disclosed in note 26 to the financial statements (R3,702,440) was incurred due to non-adherence to practice note number SCM 1 of 2003, issued by National Treasury, which requires a tax clearance certificate to be obtained as part of the standard bid documents when awarding contracts;

As disclosed in note 27 to the financial statements, the Sheltered Employment Factories incurred fruitless and wasteful expenditure amounting to R278,514 on cell phone contracts and storage costs.

Thank youThank you

annual report: 2008/09

Documents