PRESENTATION TO MEMBERSOF THE PORTFOLIO COMMITTEE

ON LABOUR

THE DIDTETA2004/2005 ANNUAL REPORT

OSTENWALD LOUWFORMER ACTING CEO DIDTETA

14 OCTOBER 2005

DIDTETA SECTOR PROFILE

The DIDTETA Sector consists of the following 10 member institutions:

• Department of Foreign Affairs (DFA)• Department of Defence (DoD)• Department of Trade and Industry (DTI)• National Intelligence Agency (NIA)• South African Secret Service (SASS)

DIDTETA Report to PC on Labour on Annual Report 04-05

DIDTETA SECTOR PROFILE

• ARMSCOR• ARMSCOR Business• Competition Commission• International Trade Administration Commission (ITAC)• Companies and Intellectual Property Registration Office

(CIPRO)

Total Number of Employees: 81 335DoD=92.5%Other=7.5%

DIDTETA Report to PC on Labour on Annual Report 04-05

SCARCE AND CRITICAL SKILLS NEED OF THE SECTOR

The critical and scarce skills demand within the sector is for especially African and Female staff in the following priority categories:

• Intelligence professional staff at NQF Level 5 to 7• Pilots (combat, helicopter, transport, Maritime and

reconnaissance).• Intelligence support staff (clerks) NQF Level 4• Defence Foreign Relations staff

DIDTETA Report to PC on Labour on Annual Report 04-05

SCARCE AND CRITICAL SKILLS NEED OF THE SECTOR

• Special Forces skilled staff• Combat skilled soldiers• Electrical, Electronic, Aircraft, and Mechanical

Technicians• Electrical, and Electronic Engineers• Occupational, Health and Safety (OHS)

professional staff

DIDTETA Report to PC on Labour on Annual Report 04-05

• Medical and Nursing Professionals• Air Traffic Controllers (ATC’s)• Human Resources Management skilled staff• Company, Competition and Intellectual Property Law Expertise

SCARCE AND CRITICAL

SKILLS NEED OF THE SECTOR

DIDTETA Report to PC on Labour on Annual Report 04-05

SETA PROFILE

C o m mA dm

C o m mA dm

B o okke ep er R e ce p tio n istO fficeK e ep er

Total Post: 16Vacant: 3

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Vacant

A ss t. M an E T Q AContract

M a n E T Q AX3

X1 Vacant

S e n M anE T Q A

S e n M anL e a rn e rsh ips

S e n M anS k ills D e v

Acting CEO from 18/09/04

C F O A d m in & H RM a na g er

C E OV a ca nt fro m 1 8 /0 9 /04

NSDS 2001-2005 ACHIEVEMENTS

• Indicator 1.1: No. of workers who have achieved NQF Level 1.

Target: 3520

DIDTETA Result: 5281

Comment: Exceeded target by 50%

DIDTETA Report to PC on Labour on Annual Report 04-05

NSDS 2001-2005 ACHIEVEMENTS

• Indicator 1.2:No. of workers who have successfully completed structured learning programmes.

Target: 56 000

DIDTETA Result: 73 369

Comment: Exceeded Target by 31%

DIDTETA Report to PC on Labour on Annual Report 04-05

NSDS 2001-2005 ACHIEVEMENTS

• Indicator 1.3:No. of enterprises that achieved IIP Standard

Target: 1 Governement Department 2 Divisions of the DoD

DIDTETA Result: DTI as a pilot poject achieved the standard.DFA, DoD, ARMSCOR, DIDTETA signed letters of commitment. Assessments were good with only a few minor issues to be addressed.DIDTETA Report to PC on Labour on Annual Report 04-05

Indicator 2.3:Number of Learnerships available in the sector

Target: 60 DIDTETA Result: 11

Comment: The DIDTETA planned to convert 48 Apprenticeships currently active in the DoD to Learnerships to change the non-designated statusto designated status, but was advised by DoL that apprenticeships will be allowed to continue for the time

being.

DIDTETA Report to PC on Labour on Annual Report 04-05

.DIDTETA Report to PC on Labour on Annual Report 04-05

NSDS 2001-2005 ACHIEVEMENTS

• Indicator 3.1 SMME Support

NOT APPLICABLE TO DIDTETA

Indicator 5.1:No. of unemployed young people that entered into Learner-ships and Apprenticeships

DIDTETA Comment: All young people in the DIDTETA Sector that have entered into Learnerships and apprenticeships are automatically employed the moment they sign their contracts.

DIDTETA Report to PC on Labour on Annual Report 04-05

NSDS 2001-2005 ACHIEVEMENTS

• The DIDTETA have supported 80 learners in New Venture Creation of which 75 received certificates.

• Project Military Veterans was approved by the NSF for an amount of R 56 million to skill and place 4350 beneficiaries.

DIDTETA Report to PC on Labour on Annual Report 04-05

NSDS 2001-2005 ACHIEVEMENTS.

SDL Income R’000 Administration Levy: SARS 96Administration Levy: Gov. Departments 6.345Administration Levy accrued 114Total Admin Income 6,555

Employer Grant Income 576Employer Grant accrued 75Total: Employer Grant Income 651Discretionary Grant Income 108Total SDL levies received 7,314

DIDTETA Report to PC on Labour on Annual Report 04-05

DIDTETA Report to PC on Labour on Annual Report 04-05

Annual Financials

Annual Financials

Total Investment Income (interest income) 245• Total Revenue (include database to the navy) 7,784 7,784 (excluding NSF income of R7,000)

• Total Expenses (excl. NSF expenses) 7,182 (Made up as follows: Admin. Expenses 6,269 Employer grant project 913

• Expenses as % of SDL Income Admin expenses as % of Admin Income 95.6% Total expenses as % of SDL Income 98.1%

DIDTETA Report to PC on Labour on Annual Report 04-05

Annual Financials

• NETT Surplus/(deficit) 602• Total Cash and cash equivalents 8,168 made up as follows: NSF received in advance 2,868 DIDTETA cash reserves 5,300

(DIDTETA cash excludes accounts payable and VAT payableTotalling R1,054)

DIDTETA Report to PC on Labour on Annual Report 04-05

Audit ResultsQualifications:Lack of an appropriate documented and approved policyand procedure framework for the recording, monitoring,and the reconciliation of the Skills Development Levy (SDL)Income.

DIDTETA has incorrectly accounted for the SDL Income transferred from the DoL for the current and prior years. As a result the following account balances are materially understated:

SDL income (R 127 353)Accounts receivable (R165 139)Reserves (R35 253)DIDTETA Report to PC on Labour on Annual Report 04-05

SARS reversals amounting to R 103 295 and relatedimpact on employer receivables has not been disclosedon Note 9 of the annual financial statement as required

by Statements of Generally Accepted AccountingPractice.

An unreconciled and unexplained difference of R 52 318 exists between the amount transferred by theDoL and the amount that is recorded as SDL Income of

of DIDTETA.

DIDTETA Report to PC on Labour on Annual Report 04-05

Audit Results

Emphasis of Matter

• DIDTETA has not implemented a supply chain

management system. This is due to the merger with

the Poslec SETA. A supply chain management

system will be implemented in the next financial year.

DIDTETA Report to PC on Labour on Annual Report 04-05

Challenges for 2005-2006

Reaction of employers due to policy changes in the

Levy Grant Disbursement Regulations.

Surpluses created by this accrual will be swept into

reserves meaning that it will not be utilised for its

purpose of operational costs. This will affect the Skills

Development Levy Administration income for the

current financial year.

DIDTETA Report to PC on Labour on Annual Report 04-05

CONCLUSION

• The year 2004/2005 was a very traumatic year for the DIDTETA, in many ways, but all in all we experienced a very good year.

• The DIDTETA did for its sector what was humanly possible given the time and financial constraints.

• Looking back on the last five years, no effort has been a waste-every system put in place and procedure implemented will influence our way of doing business in the future.

• No training initiative has been in vain - all have beenbuilding blocks in creating awareness of the importance of skills development in the sector.

• We have confidence that together with our collegues at the Poslec SETA we will serve the Safety and Security Sector with loyalty and Professionalism.

THANK YOU