bankseta annual report 2009/10 · annual report of the bankseta publisher bankseta po box 11678...
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B A N K S E TA A N N U A L R E P O RT
2009/10
REPUBLIC OF SOUTH AFRICA
higher education & trainingDepartment:Higher Education and Training
Highlights of 2009/10
• 1000newLETSEMAlearnerswererecruited,bringingthetotalnumberoflearnersrecruitedsince2005to6200.Placementratesforcompletedlearnershipsconsistentlyexceed75%.
• TheBANKSETAbecamethefirstSETAtostartfundingdoctoralandpost-doctoralstudies.• TheIntroductoryCourseinIslamicBankingwaslaunchedtofurtherenhancediversityandtransformationin
thesector.• TwonewCentresofExcellencewereopened,oneattheUniversityofFortHareandtheotherattheNorth-
WestUniversity,therebyextendingtheBANKSETA’sprovincialreach.• Amobiletrainingsolutionwaslaunchedasavehicletotakeskillsdevelopmenttosmallandmicroenterprises
(SMEs)inoutlyingareas.• StakeholdersinthesectorsupportedtheBANKSETA’sapplicationtocontinueoperatingunchangedwhen
thenewSETAlandscapeisintroducedinlinewiththeNationalSkillsDevelopmentStrategyIII.• Inthemeantime,theBANKSETA’soperatinglicencewasrenewedforafurtheryear,until31March2011.• TheBANKSETAachieved full ETQAaccreditation for another three years, basedon its newly launched
operatingmodel.
HonourableMinister,itiswithpleasurethatwepresenttoyoutheAnnualReportoftheBANKSETAfortheperiod1April2009to31March2010.
EugeneEbersohnChairperson
DrBladeNzimandeMinisterofHigherEducation&Training
Annual Report of the BANKSETA
Publisher BANKSETA POBox11678 VornaValley 1686
Designandlayout BlackmoonDesignandAdvertising
RP 97/2010
ISBN 978-0-621-39425-2
REPUBLIC OF SOUTH AFRICA
higher education & trainingDepartment:HigherEducationandTraining
2009/10
1.Chairperson'sReport
2.ChiefExecutiveOfficer'sReview
5.Reach 6.Delivery
a. ProvincialFootprint 20
b. CentresofExcellence 20
c. Research 21
a. ServiceLevelAgreement(SLA) 24
b. DiscretionaryProjects 24
page 19 - 21
page 4 - 5
page 22 - 27
page 6 - 8
3.Foundation
a. Vision,Mission,ValuesandObjectives 10
b. Strategy 10
c. Governance 11
d. OurPeople 13
e. CustomerSatisfactionSurvey 13
f. Sustainability 13
4.Operations
RoleoftheCoreDepartments 16
RoleoftheSupportUnits 17
page 28 - 78
page 9 - 14
page 78 - 95
page 15 - 18
8.AnnexuresandAcronyms
AnnexureA:CouncilMembersandCommitteeAttendance 80
AnnexureB:HumanResources 82
AnnexureC:RegisteredandDe-RegisteredLearnerships 84
AnnexureD:BANKSETANSDS2009/10Achievements 86
AnnexureE:DiscretionarySectorProjects 91
Acronyms 97
7.AnnualFinancialStatements
StatementofResponsibility 30
Auditor-General’sReport 31
AuditCommitteeReport 33
AccountingAuthority'sReport 35
StatementofFinancialPerformance 38
StatementofFinancialPosition 39
StatementofChangesinNetAssets 40
CashFlowStatement 41
StatementofComparisonofBudgetandActualAmounts 42
AccountingPoliciestotheAnnualFinancialStatements 43
NotestotheAnnualFinancialStatements 50
4 | CHAIRPERSON’S REPORT
Chairperson’sReport The2009/10financialyearwasoneofthemostchallengingyetinthe10-yearhistoryof South Africa’s sector education and training authorities. During the year, theDepartmentofHigherEducationandTrainingtookoverresponsibilityfortheSETAsfromtheDepartmentofLabourandcommencedareviewoftheSETAlandscape.Atthesametime,employersandorganisedlabourhadtocontendwiththeaftermathofaglobaleconomicdownturnthatdecimatedjobsandplacedmostorganisationsunderpressuretocutcosts.Inthesecircumstances,theBANKSETAagainproveditsworthastheskillsdevelopmentpartnerofthebankingandmicrofinancesector.
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Theeffectsof the recessionwere reflected in the slightdropinlevyincome,whichfellfromjustoverR329millionlast year to R328 million in the financial year ended31March2010.Evenso,theBANKSETA,which iswellknown for being economical in spending stakeholdermoney,sustaineditstrackrecordofincreasingspendingondiscretionaryprojects.Infact,theorganisationincreasedthis component of its spending by an impressive 63%,fromR99millioninthepreviousyeartoR154million.Thissolid increase helped to cushion the recessionary blowon thesector’sskillsbaseandassistedstakeholders inpreparingfortheeconomicrecovery.
Theeffectivenessof this response,comingonthebackof the BANKSETA’s longstanding reputation as a top-performingSETA,explainsthewillingnessofstakeholdersto support the organisation’s application to continue initscurrentformat.WhentheDepartment*completestheSETAreviewin2010/11,weexpectthattheBANKSETAwill remain intact and will not be required tomerge orrestructure.
TheBANKSETA’ssuccesswasalsoacknowledgedatthefirstInterSETAconference,whichwasheldattheendofSeptember 2009 and chaired by the BANKSETA chiefexecutive officer,MaxMakhubalo. Itwas a privilege fortheorganisation tobeable to share itsexperienceandinsightsatthisevent.
Another successful event in September 2009 was theAnnual General Meeting of the BANKSETA. At the
AGM, Ihadtheprivilegeofbeingformally introducedtostakeholdersasthenewChairpersonoftheBANKSETACouncil,havingsucceededtheoutgoingChairperson,MrSipho Ngidi. The handover was exceptionally smooth,confirming the BANKSETA’s reputation for being wellorganisedandefficient.
Good continuity was also evident in the handling ofcorporategovernancematters.TheCouncilcommitteeswere effective in scrutinising the BANKSETA’s internalcontrols, financial reportingand remunerationpractices.TheCouncilwassatisfiedwiththewaythatmanagementimplemented the BANKSETA strategy and monitoredprogress against the Service Level Agreementwith theDepartment.
Finally,itisapleasuretoreportthat,forthe10thconsecutiveyear,theBANKSETAhasachievedanunqualifiedauditforthe2009/10financialyear.
EugeneEbersohn
*DepartmentReferenceto"Department"beforeNovember2009,readastheDepartmentofLabour.Referenceto"Department"afterNovember2009,readastheDepartmentofHigherEducationandTraining.
6 | CHIEF EXECUTIVE OFFICER'S REPORT
ChiefExecutiveOfficer’sReport
Aftertwodifficultyears,allindicationsarethattheSouthAfricaneconomyisemergingfromrecessionandthat thecountry’sbankingsectorhasweatheredthefinancialturbulence better thanmost. Although the recession resulted in a drop in leviesincome in thepastfinancial year,weareseeingpromisingsigns in theuptakeofemploymentandthedemandfortraininganddevelopment.
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AswithallSETAs,thefutureoftheBANKSETAhasbeenuncertain pending the review being conducted by theDepartment. The Department has since recommendedthat theBANKSETA continuewith its existingmandatewithout beingmergedwith another SETA.We see thisasavoteofconfidenceintheworkwehavedoneinoursectoroverthepastdecade.
During 2009/10, in response to the needs of thesector, the BANKSETA introduced or extended variousproducts designed to help our stakeholders keep upwith international developments and improve the localrelevance of their offerings. An excellent example wasthe introduction of the BANKSETA-funded IntroductoryCourse on Islamic Banking, which was launched inJanuary2010.
In reaching out to small and micro enterprises (SMEs)in outlying areas, the BANKSETA launched a mobiletraining solution in the form of a bus equipped withsatellite technology, touch screen computers andofficeequipment.
WehavealsogoneoutintotheprovincestohelpimprovethepassratesinMathematics,AccountingandEnglishbycreatingCentresofExcellence.Thesefieldsarethemainbottlenecks for entry to thebankingprofessionandwearedeterminedtoassistinunblockingthem.
Toenhancetheglobalrelevanceofoursector,webecamethefirstSETA tostart fundingstudentsatdoctoral andpost-doctoral level for studies in fields such asAppliedEconomics,AppliedFinanceandAppliedAccounting.
Despitethetoughoperatingconditionsthatmostofourstakeholdersexperienced,thebankingsectorcontinuedto support the LETSEMA learnership programme forpost-matric learners and the KUYASA programme forunemployedgraduates.Bothlearnershipsenjoyveryhighplacementrates.
Forthefuture,weareresearchingtheRecognitionofPriorLearning(RPL)asamajorprojectforachievingequityandfairnessforpeoplewhohavecarriedoursectorformany
years.WehavemadegoodprogresswithRPLandarecurrentlydoingabenchmarkingexercisewiththeCentreforLearningSciencesandTechnologies (Celstec) in theNetherlands. In addition, the BANKSETA is busy looking at theapplicationof thedual education systembeingused inGermany,wheretwo-thirdsofpeoplewhohavepassedtheirmatriclevelgoontodoartisanshipsandlearnerships.I look forward to reportingback toourstakeholdersonourfindingsandnextsteps.
InvestmentbankingisanotherimportantareasinceSouthAfricahasadearthofblackinvestmentprofessionalsandfemales.Toaddressthis,wearefinalisinganagreementwith New York University’s Stern Business Schoolto introduce an International Executive DevelopmentProgramme (IEDP) in Investment Banking as from the2011/12financialyear.
TheBANKSETAalsocontinuesinvestinginourownstaffandincreatingaworkingenvironmentthatischallengingandinteresting,butalsoresponsivetopeople’sindividualcircumstances. We have introduced flexi-time andtelework to assist young employees with families, andthis is working well. Hence, despite the uncertainty inour environment, the BANKSETA has retained a coreof capable and motivated staff who have enabled ourresults.
We are truly indebted to our Council members and allthe people who serve on our subcommittees. Withoutthem,theBANKSETAsuccessstorywouldnothavebeenpossible.Theirselflessdedication to thenationalcall toimproveskillsandtransformoursectorwillleavealastinglegacy.TheBANKSETAfamilyisproudtoagainforwardasetofexcellentresultsinallrespects.Wearehumbledbytheopportunitytoserveourfellowman.
MaxMakhubalo
Foundation
a. Vision,Mission,ValuesandObjectives 10
b. Strategy 10
c. Governance 11
d. OurPeople 13
e. CustomerSatisfactionSurvey 13
f. Sustainability 13
page 9 - 14
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3.Foundation
a.Vision,Mission,ValuesandObjectives
VisionThe vision of the BANKSETA is to be recognised as acentreofexcellenceandinnovationforskillsdevelopmentinthebroaderBankingandMicrofinancesector MissionTosupporttransformationandpeopledevelopmentand,throughpartnerships,toenablestakeholderstoadvancethenationalandglobalpositionof thebroaderBankingandMicrofinanceindustry.
ValuesTheBANKSETAvalueshighlightthedesiredstandardsofbehaviourexpected fromallBANKSETArepresentativesin theirdealingswith stakeholders.Bywayof example,all employees are at all times required to demonstrateprofessionalism and customer focus, which are two oftheBANKSETA’sespousedvalues.Thus,valuesplayanimportantpartindrivingperformanceanddeliverywithintheorganisation.
TheBANKSETAhassevencorevalues,asfollows:
• Respect-Wetreatallpeoplewithrespect.• Innovation-Westriveconstantlytoupourgameand
perpetualdissatisfactionwiththestatusquoisourmantra.
• Customerfocus-Wetreatthecustomerasking.• Professionalism-Westrivetoupgradeour
informationbasebybenchmarkingandfollowingworld-classprinciples.
• Diversity-Wecelebratediversityasitstrengthensourculturalfabric.
• Integrity-Weactwithintegritytowardsallstakeholdersandsupportclientsthatupholdthesamevalues.
• Teamwork-AstheBANKSETAweareaseamlessteamintheserviceofourcustomers.
ObjectivesTheBANKSETAhas twomajorobjectives thatguideallactivities:
1. Enableskillsdevelopmentinthebroaderbankingandmicrofinancesector;and
2. ImplementtheNationalSkillsDevelopmentStrategyinthebroaderbankingandmicrofinancesector
The functions of a SETA according to the SkillsDevelopment Act (Act No. 97 of 1998) include thefollowing:
• DevelopandimplementtheSectorSkillsPlan;• Developandadministerlearnerships;• SupporttheimplementationoftheNational
QualificationsFramework(NQF);• ImplementEducationandTrainingQualityAssurance
(ETQA)responsibilitiesmandatedbytheSouthAfricanQualificationsAuthority(SAQA);
• Disburseleviescollectedfromemployersinthebankingsector;
• Forgelinkswithstakeholdersandbodiesinthebankingsector;
• Accountfortheeffectiveandefficientuseofpublicmoniesreceivedfromleviescollectedfromemployers,inlinewiththeprovisionsofthePublicFinanceManagementAct;and
• ReporttotheMinisterthroughtheDirector-GeneraloftheDepartmentonmattersrelatedtotheBANKSETA.
b.StrategyImplementation
The Chief Executive Officer and the BANKSETAManagementareresponsibleforimplementingthestrategyofCouncil.Toassistinstrategyexecution,theBANKSETAhasintroducedaBalancedScoreCard,whichisdirectlylinked to the approved strategy. The Balanced Score
10 | FOUNDATION
Card isproving invaluable inensuring thatall resourcesaremobilisedtowardsachievingthestrategicthemessetfortheyear.
TheBalancedScoreCardfor2009/10hadadashboardconsistingof five key themesand specificmeasures tomapprogress.Thethemesfortheyearwere:
• EnsuringaworkclimatethatsupportstheBANKSETAstrategy,withtheemphasisoninvestinginpeopleandembeddingavalue-drivenculture.
• Creating an efficient organisation aligned to sectorneedsandthenationalagenda.Thefocusofthisthemewasonlegalrequirements,corporategovernanceandtechnologicalinfrastructure.
• Developing relevant, high-quality skills to enabletransformation, with the emphasis on the qualityand relevance of BANKSETA products, customersatisfactionandprojectcontrols.
• Understanding thesupplyanddemanddynamicsofthe labour market in the banking and microfinancesector,highlightingresearchandskillsplanning.
• Buildingstrategicpartnershipswithkeystakeholders,includingserviceproviders.
c.Governance
TheBANKSETAiscommittedtoprinciplesandpracticesthat give stakeholders assurance that the organisationand its resources are managed soundly and ethically.The structure charged with overall governance is theBANKSETACouncil,whichisresponsibleforthegeneraldirection,policyandfinancesoftheorganisation.
Under theguidanceofCouncil, theBANKSETA followsbusinessandreportingpracticesthatareinlinewiththeCodeofCorporatePracticesandConductassetoutintheKingIIIReport,thePublicFinanceManagementAct(PFMA) (ActNo.1of1999)and theSkillsDevelopmentLeviesAct(ActNo.9of1999).
CouncilmembersCouncilmembersareappointedintermsoftheBANKSETAConstitution, in linewith theSkillsDevelopmentAct.TheCouncilrepresentsorganisedlabourthroughtheBankingEmployeesForumandorganisedemployers through theBankingEmployersForum.EmployersandemployeesareequallyrepresentedontheCouncil,withtheSouthAfricanReserveBank as a non-votingmember. Allmembers ofCouncilareboundbytheBANKSETACodeofConduct.
TheCouncilmeetseverytwomonths,orasrequired,toenable it to assert its governance responsibility as theAccountingAuthority.
FiduciaryresponsibilityofCouncilmembersAll Council members are aware of their fiduciaryresponsibilities and the need for fair, transparent andaccountabledecisionsandactions.
AllowancesforCouncilmembersCouncil members are not staff members of theBANKSETA. An allowance is paid to Councilmembersfortheirattendanceatandcontributionstothestatutorymeetings.Boardallowancesarepaidtotheconstituenciesthat members represent and not to the individual. TheallowanceratesapprovedbytheCouncilare:
• R1000paidtotheChairpersonforattendanceatmeetings
• R800paidtoCouncilmembersforattendanceatCouncilandCouncilcommitteemeetings.
ChangesinCouncilofficebearersandmembershipIn the 2009/10 financial year, Council Chairperson MrSiphoNgidihandedoverthereinstoincomingChairpersonMrEugeneEbersohn.MrRonaldRamabulanatookoverfromMrLawrenceMlotshwaasdeputychairperson.
TheCouncil alsowelcomedMsNitashaNaicker of theAfricanBankandMrGcobaniFipazaofFirstRandasnewmembers,followingtheresignationsofMrFrancoisHugoandMrSifisoMthembuofFirstRand.
It is standard practice to introduce new BANKSETACouncilmemberstothesystemsandpoliciesthroughaformalinductionprocess.Inthisway,theCouncilensuresthatmembers can immediately participate effectively inCouncil deliberations, while Council can in turn benefitfromtheexpertisethatnewmembersbringtobear.
ThreepermanentCouncilcommitteesareinplacetoassistthe Council in discharging its governance obligations.ThesecommitteesaretheAuditCommittee,theFinanceCommitteeandtheRemunerationCommittee.Detailsofthemembershipofthesecommittees,alongwithCouncilandcommitteemeetingattendancefortheyear,appearinAnnexureA(p80)ofthisannualreport.
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CouncilMembers
ChairpersonEugeneEbersohn
Sasbo
Deputy ChairpersonRonaldRamabulana
Absa Bank
BenVenter Sasbo
EugeneZeeman IBSA
SiphoNgidi Standard Bank
HennieFerreira Micro Finance SA
VanessaHattingh Sasbo
IsaacRamputa Sasbo
ShirleyZinn Nedbank
JennyJeftha South African Reserve Bank
NitashaNaicker African Bank
GcobaniFipazaFirstRand
JoeKokela Sasbo
12 | FOUNDATION
d.OurPeople
The BANKSETA aspires to be recognised as a centreof excellence within its sector. With this in mind, theorganisation benchmarks itself against other employersin the financial servicessector, aswell asagainstotherSETAs.Toattractandretainthebestskillsinasmallandhighly competitive marketplace, the BANKSETAmakessignificantinvestmentsinthedevelopmentandwellbeingofemployees.
During 2009/10, a total of R763 100 was spent onemployee training and development, which equates to6.8%of the totalpayrollbudget.This iswell above thebenchmarkof1%.
The training programmes presented during theyear demonstrate the BANKSETA’s commitment toteamwork, professionalism and personal accountability.All employees, from the CEO to the receptionist andhousekeepingpersonnel,attendedacourse inpersonalmastery and emotional intelligence. The entire teamalsoattendedprojectmanagementtraining,designedtoensure consistent, efficient projectmanagement acrossthe business. A third course that everymember of theBANKSETAattendedwasonsupplychainmanagement,focusing on ethical and legally compliant sourcingthat is guided by the Public FinanceManagement Act.Certificateswereissuedtostaffaftercompletingthethreecourses.
Recognising that it can be challenging to balancethe demands of work and family, the BANKSETA hasintroduced an Employee Wellness Programme. Thisprovidesaprofessional,confidentialpersonalsupportandinformationservice,whichisavailable24hoursaday,365daysa year. Thepurposeof theprogramme,onwhichR42750.00wasspentduring theyearunder review, istoequipemployeeswiththeskillstodealwitheverydaypersonal and professional situations while remainingproductiveatwork.
TheBANKSETArecordedastaffturnoverrateof16%during the year, compared to 28% in the previousyear. Inall, fiveemployees left theorganisation, threeof whomwere in administrative positions and two in
specialistpositions.Atotalofeightnewappointmentsweremade,bringing thestaffcomplementat theendoftheyearto31.
Asaleadingadvocateoftransformationinthesector,theBANKSETA seeks to be a role model in implementingemployment equity. Annexure B: Human Resources in2009/10 (p82) illustrates theequityprofileofemployeesasat31March2010.
e.CustomerSatisfactionSurvey
Eachyearsince2001,theBANKSETAhascommissionedanindependentCustomerSatisfactionSurveytotestthequalityofservicedeliveryagainstcustomerexpectations.TheresultsofeachannualsurveyarefedintothecorporatestrategyandtheBalancedScoreCard,ensuringthatthefindings are translated into action, whether to furtherimprovewinningpracticesor to address areasneedingimprovement.Inthisway,theBANKSETAhassucceededin achieving steady increases in customer approvalratingsovertheyears.Asaresult,the2009/10CustomerSatisfaction Survey was conducted from a high basescore,reflectingyearsofincrementalupwardmovement. This did not stop the BANKSETA from raising the baryetagain.Intheviewofcustomers,asmeasuredbythe2009/10 survey results, the organisation has continuedtoliftitsalreadystrongperformanceinseveralimportantareas. Onewasthequalityof theBANKSETA’strainingprovidersandinternationalpartnersonthedevelopmentprogrammesspecifically.Anotherhighlyratedareawasthecoursecontentofprogrammes,whichmanycustomersregardas valuable.A third strengthwas theusefulnessandrelevanceofBANKSETAforums.Whilenotingthesepositive results, the BANKSETA is also addressing thefewareasthatcustomershighlightedasbeinginneedofimprovement.
f.Sustainability
The BANKSETA is a responsible corporate citizenthat strives to make a positive social, environmentaland economic impact. Sustainability imperatives andobjectives are intrinsic to the organisation’s skillsdevelopmentmandate in thebanking andmicrofinance
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sector.Overandabovethis,theBANKSETAstrivestobea transformation role model by promoting employmentequity, preferential procurement and corporate socialinvestment (CSI), among other elements of economicempowerment.
In termsofCSI, theBANKSETA’sflagshipproject is thesupportprovidedtoaselectedcharityinDecembereachyear. Annually at this time, the BANKSETA selects aworthycausetosupportinsteadofprintingfestiveseasoncards.ThechoiceismadebytheBANKSETAstaff,whovoteforthecharityoftheirchoice.InDecember2009,theBabiesBehindBarsinitiativereceivedthemostvotesandtheBANKSETA respondedbyprovidingbaby foodandformula to the valueofR10000.TheorganisationalsotookpartintheCellCTakeaGirlChildtoWorkinitiativeinMay 2009 and inMandela Day activities on 18 July2009.
A growing focus of the business is on expandingits geographic footprint while using resources in anenvironmentallyresponsibleway.Everyeffort ismadetorecyclepaperandusedinkcartridges.
14 | FOUNDATION
BANKSETA COUNCIL
CEOMaxMakhubalo
PAPreciousSikhosana
Corporate ServicesManager
ChristineFritz
HR Manager
DimakatsoSeete
ETQAManager
KarenHobbs
Development Programmes Manager
LynetteMentor
Skills DevelopmentManager
TrevorRammitlwa
Learning Programmes Manager
PauletteBourne
Marketing & Communication Manager
KaaminiReddy
AdministratorMabellyneLenyai
ReceptionistPaulinaShai
AdministratorNyekoMayimela
AdministratorMirriamChauke
AdministratorKgomotsoKhoale
HousekeeperThelmaBaloyi
SpecialistSharonMokgwathlheng
SpecialistAyandaMaki
AdministratorRozahMagamba
SpecialistMaryBaloyi
SpecialistJoletteLeRoux
SpecialistMadeleinePelzer
HousekeeperPortiaKekana
SpecialistSharissaNaicker
SpecialistNobuzweMangcu
SpecialistCarolineKing
AdministratorSilindileBulunga
SpecialistCharmaineJanisch
SpecialistAumaNnane
SpecialistIsabeldeNecker
SpecialistDeeraniNaidoo
Head of ResearchSipheloNgcwangu
TheBANKSETATeam
Operations
RoleoftheCoreDepartments 16RoleoftheSupportUnits 17
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16 | OPERATIONS
Operations
TheBANKSETAisasmall,agileorganisationconsistingof fourcoredepartmentsthatdeliverservicestostakeholdersinthesectorandthreeunitsprovidingsupportservices.Asat31March2010,thecoredepartmentswereLearningProgrammes,DevelopmentProgrammes,SkillsDevelopmentandSMESupport,andEducationand Training Quality Assurance (ETQA). The support units were Marketing andCommunication,CorporateServicesandHumanResources.
Roleofthecoredepartments
a.LearningProgrammes
Thisdepartmentpromotes,supportsandimplementsnewandexistingskillsdevelopmentinitiativesforBANKSETAstakeholders,includingexistingemployees,newentrantsandpotentialnewentrants,aswellasemployers in thebroader Banking and Microfinance sector. It overseesthe implementation of sector-appropriate learningprogrammes, including learnerships, internships, workreadiness programmes and bridging programmes thattargetbothemployedandunemployedlearners.RefertoAnnexureC:RegisteredandDe-registeredLearnerships(p84).
b.DevelopmentProgrammes
Development Programmes co-ordinates the leadershipand management development programmes that theBANKSETAfundsforthebankingandmicrofinancesector.Duringthe2009/10financialyear,theemphasiswasonthe International Executive Development Programmesand the Junior and Middle Management Programme,aswell as the funding ofMaster’s and Executive shortcoursesanddoctoralandpost-doctoralstudies.AnotherimportantstepwastheestablishmentoftheDiscretionaryGrant Funding Window project for discretionary grantapplications.
ProjectmanagementandadministrationattheBANKSETAarecentralisedwithinthisdepartment,whichmaintainstheProjectSystemandisresponsibleforprojectmanagementpolicy,proceduresandthequalitymanagementsystem.Akeyresponsibility is formulatingand implementingtheBANKSETADiscretionaryGrantPolicy.
c.SkillsDevelopmentandSMESupport
The department, which is the sector’s point of contactfor workplace skills plans and annual training reports,managestheBANKSETA’sresearchstrategyandcompilestheannuallistofscarceskillsforthesector.Theteamalsopromotes SME participation in skills development andmanagesstrategicprojectsfundedthroughdiscretionarygrants.
EmployersregisteredwiththeBANKSETAwererequiredtosubmittheirannualworkplaceskillsplansandannualtraining reports on or before 30 June 2009. The highsuccess rate achieved can be ascribed to the vibrantcultureofparticipationinthesectorandtheBANKSETA’spracticeofholdingworkshopsandone-on-onemeetingswithstakeholderswhorequestthis.Theavailabilityoftheonlinesubmissionservicealsomakesiteasierandquickerforemployerstosubmittheirreports.
In partnershipwithMicro FinanceSouthAfrica (MFSA),theBANKSETAheldcontactsessionsformicrofinancersinall nineprovinces, reaching506delegates.Overand
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above these sessions, a series of one-day workshopswasheldontopicssuchastheNationalCreditActandthe Magistrates Act, understanding and reporting onblack economic empowerment, and the measurementofproductivity.Furthermore,theBANKSETAenabled20delegatesfromvariousmicrofinanceinstitutionstoattendaninternationalconferencewithafocusonAfrica.
d.EducationandTrainingQualityAssurance(ETQA)
The BANKSETA ETQA is accredited by the SouthAfrican Qualifications Authority (SAQA) for the purposeofmonitoringandauditingachievements in thebankingsector. Its responsibilities are to accredit educationandtrainingproviders,promotetheintroductionofqualificationsinto the sector, support the sector in complying withbankinglegislationandregulations,andmaintainitsownSAQAaccreditation.
Inoneofthequalityassurancehighlightsoftheyear,theBoardofSAQAawarded full ETQAaccreditation statustotheBANKSETA.Theawardingoffullaccreditationwasannounced on 15March 2010. In the process leadinguptotheawardingofaccreditation,SAQAcommendedthe BANKSETA on many of its processes being BestPractice.
Theprocessofmovingfromprovisionalaccreditationtofull accreditation spanned 15 months and started withan analysis ofSAQA’s2008performance audit findingsand consultation with training providers in the sectorabout the need for change. This set the scene for thedevelopmentof thenewETQAoperatingmodel, furtherconsultationwithinthebankingandmicrofinancesectorandtheintroductionofnewfunctionalities.Theseincludestakeholdereducationservicestohelpprovidersachieveaccreditation, as well as the introduction of a full-timeresource for on-site monitoring and training providerauditfunctions.Apilotusertestingwithsectorprovidersaccompaniedeachstageofthenewmodel.
Anotherachievementstemmingfromthe introductionofthenewoperatingmodelwastheincreaseinthenumberof secondary providers (meaning other SETA providerswho are accredited by the BANKSETA for learningprogrammes based on BANKSETA qualifications). The
number had risen from zero to 12 by the end of thefinancial year. In linewith the applicablememorandaofunderstanding, theBANKSETAETQAonlymonitors thequality assurance of the specific learning programme,whiletheprimarySETAcontinuestomonitorthequalityoftheorganisation’sprovideraccreditation.
Accreditingnewtrainingprovidersisanimportantfunctionof the BANKSETA ETQA. In 2009/10, an additional 15providerswereaccredited,bringing the total numberofBANKSETA-accreditedprovidersto55.
RoleoftheSupportUnits
a.MarketingandCommunication
As shown in the findings of the 2009/10 CustomerSatisfaction Survey, there is a great need amongstakeholders in the sector for timely, quality informationon BANKSETA initiatives. In response, a concertedeffort has been made to strengthen the capacity ofthe Communication and Marketing team throughselective recruitment, complemented with training anddevelopment. This enabled the department tomaintainthe BANKSETA’s high media profile during the yearunderreview.Thatprofile,supportedbygoodcorporategovernanceandastrongtrackrecordofdeliveryagainstNSDStargets,continuestocontributetotheBANKSETA’sstandingasoneofthetopSETAsinthecountry.Internalcommunicationwasalsoaddressedinthefinancialyear,whentheBANKSETAimplementedaninternalnewsletterandanintranetsite.
b.CorporateServices
This department is responsible for the BANKSETAinternaloperations,corporategovernanceandpaymentofmandatorygrants.
In the sphere of governance, Corporate Services isresponsible for financial and resources management,strategic and business planning, reviewing the policieson office administration and corporate governance,coordinating internal and external audit, supportingCouncil, and reporting to the National Treasury andDepartment of Higher Education and Training. During2009/10, the unit ensured that the BANKSETA met
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its statutory reporting deadlines and that governanceprocesses and structures were running efficiently andeffectively.
In respect of mandatory grant payments, CorporateServices oversaw the BANKSETA’s transactions with atotalof552levy-payingcompanies.
InformationTechnologyInformation Technology’s main role is to support theBANKSETA to perform its daily operations and provideIT applications that support access to and deliveryof information. During 2009/10, the unit streamlinedinformation flow and management by completingseveralprojectsaimedatassisting internalandexternalstakeholders:
• A new online registration portal was designed andimplementedtoallowfortheregistrationofassessorsandmoderatorsthroughtheinternet.
• Anewresearchportalwasdesignedandintroduced.Itsfeaturesincludeablogthatallowstheknowledgemanagementcommunitytocommunicate.
• Internally,end-of-lifenotebookswerereplaced,whichhelped improvetheefficiencyandprofessionalismoftheorganisation.
• The FAIS e-Revision portal was developed andlaunched to assist stakeholders in preparing for thefirst-levelRegulatoryExams.
SupplyChainManagementSupportingBlackEconomicEmpowerment(BEE)suppliersisanotherwayofpromotingdiversityandtransformationwithin thesector.During the2009/10financialyear, theBANKSETAspentR1232346.40onpurchasinggoodsandservices fromhistoricallydisadvantaged individuals.This calculation is in accordance with the preferentialpoints system used in the Preferential ProcurementPolicyFrameworkAct(ActNo.5of2000),onwhichtheBANKSETA’sprocurementpolicyisbased.Inotherwords,the BANKSETA’s empowerment calculation is limitedto acquisitions over R30 000. The scope for awardingpreferential pointswill be broadened once the NationalTreasuryandtheDepartmentofTradeandIndustryhavealignedthepreferentialprocurementprocedureswiththeBroad-BasedBlackEconomicEmpowermentAct.
MandatoryGrantsThe BANKSETA had 461 SMEs and 91 medium andlargeorganisationsregisteredas levypayingcompaniesinthe2009/10financialyear.TheBANKSETAcontinuedits excellent track record in paying mandatory grantsto member organisations that participated in skillsdevelopment. During 2009/10, a payout rate of 96%wasachieved,comparedto96,76%inthepreviousyear.Payments were made in September 2009, December2009andMarch2010.AtotalamountofR200867000.00waspaidoutformandatorygrants.
c.HumanResources
ThefocusofHumanResources(HR)withintheBANKSETAis to take the initiative as a full strategic partner withintheorganisation,asopposedtosimplyprovidingroutineadministrative services. As a strategic partner, HRfocuses on aligning the operations of the organisationwith its culture, vision and values. Such alignment iskey to realising the optimal overall performance of theorganisation. Another priority is to assist employees inmaintainingahealthyworkandprivatelifebalance.Thereis also a major emphasis on continuous learning, asdemonstratedbythesignificant investmentmade inthedevelopmentoftheBANKSETA’semployees.
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Reach
a. ProvincialFootprint 20
b. CentresofExcellence 20
c. Research 21
20 | REACH
Reacha.ProvincialFootprint
With its head office in Gauteng, the BANKSETA iscommittedtodevelopingandestablishingapresenceinallnineprovincesofSouthAfrica.Thisisbeingachievedthroughamulti-prongedstrategy,whichincludesopeningCentres of Excellence in partnership with historicallydisadvantaged institutionsofhigher learning,supportingProvincialSkillsDevelopmentForumsandstrengtheningrelationshipswithprovincialstakeholders.
ProvincialSkillsDevelopmentForumsIn 2009/10, the Provincial Skills Development Forumswere strengthened through the Skills DevelopmentAmendment Act 2008 and the InterSETA summitmotivatinginterSETAcollaboration.Asaresult,theformalestablishmentofprovincial InterSETAclustersor forumsgrew, further enhancing the relationships and provincialsynergybetween relevantSETAs. Aspartof theSETAcommunity, the BANKSETA has actively participated intheseforums.
MobileTrainingSolutionToextendtheBANKSETA’sfootprint intotheruralareasofSouthAfrica,amobiletrainingservicewaslaunchedinMpumalangaasapilotprojectduringtheyear.Thepilotreported indicated that themodelworkswellandplansareunderwaytointroducethissolutiontootherprovincesaswell.
b.CentresofExcellence
InFebruary2010,addingtothethreeCentresofExcellencelaunched in the previous financial year, the BANKSETA
celebrated the launches of the University of Fort Hareand North-West University as BANKSETA Centres ofExcellence.Asaresult,fiveCentresofExcellencewereinplaceasat31March2010,ensuringthattheBANKSETAmetthefive-yeartargetsetintheNSDSII.
The University of Fort Hare project provides fundingsupport to the Financial Markets Programme (FMP) attheUniversityofFortHarebyenhancingthecapacityoftheEconomicsDepartmentontheEastLondoncampusto the value of R2.4 million. Bursaries are granted tohonoursstudents,whichultimatelysupportstheentryofcriticaleconomicsskillstothebankingandmicrofinancesector.ThebursariescoverthecostoftheSouthAfricanInstituteofFinancialMarkets(SAIFM)examinations,whichare the professional exams studentswrite to qualify asbrokers and dealers in financial instruments at the endof theirprogramme. TheUniversityofFortHare isoneofthefirstuniversitiesinSouthAfricatohavethisfacilityfortrainingstudentsinlivetradingofequities,derivatives,bondsandforeignexchange.Inthe2009academicyear,theBANKSETAwassupporting20studentsthroughthisinitiative.
TheNorth-WestUniversityprojectisbeingundertakenincollaborationwiththeSouthAfricanInstituteofCharteredAccountants (SAICA). Itsaim istoaddresstheneedforhigh-levelfinancialskillswithintheNorth-WestProvince,aswellasinthebankingsector,byenhancingthecapacityoftheMafikengcampusoftheNorth-WestUniversity inthe critical skills field of Chartered Accountancy. TheBANKSETA’s funding of this Thuthuka Education andUpliftmentFundinterventionwasvaluedatR5millionforthe2009academicyear.Inthatyear,theprojectsupported
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114firstandsecondyearstudentsthroughbursariestoassistinpayingforaccommodationandtuitionfees.
TheBANKSETAdoesnotviewtheseprojectsas“once-off” funding gestures but plans to continue supportingthem, depending of course on the changes in theSETAlandscapewithinthenextyear.Bysupportingtheuniversities in thismanner the aim is to strengthen theeconomicviabilityandsustainabilityof the institutions inthelongterm.
c.Research
Decisionssuchaswheretobranchout intonewareas,geographicallyorintermsofskillsdevelopmentofferings,areinformedbyresearchthattheBANKSETAcarriesoutorcommissions.Bywayofexample,researchhasbeenplayingakeyroleinenablingtheorganisationtoextenditsprovincialfootprintbeyondGauteng,CapeTownandDurban.Specifically,throughitsresearch,theBANKSETAhas been able to select Centres of Excellence thatwillenable the organisation to have the greatest possibleimpact on the development of critical skills amongmarginalisedcommunities.
Basedonadditionalresearchandananalysisofemployers’workplace skills plans and annual training reports, theBANKSETApreparedtheannualSectorSkillsPlan,whichwassubmittedontimetotheDepartment.
The 2009/10 scarce skills list was published, withInformation and Communications Technology (ICT)toppingthelist.ThispromptedtheBANKSETAtoinitiatethe ICTSkillsSupportproject.First,a focusgroupwas
conducted and two priority areas were identified, ICTbusiness analysis and ICT project management. 31learnerswerethenenrolledforbusinessanalysisand29forICTprojectmanagement.
Aclearerpictureofthesector’sskillssupplyanddemanddynamics emerged in July 2009 when the BANKSETApublished a research report. The report depicts boththesupplyanddemandsidesdrawingfromquantitativedatacollectedandthekeyinformantinterviewsthatwerecarriedout.Thisreporthasbeenwidelydistributedinandoutsidethesector.
AlsoinJuly2009,theBANKSETAlaunchedanelectronicresearchportalwiththeaimofdisseminatingitsresearchas widely as possible. For the period under review,2 164 individuals or organisations registered to accesstheresearchpublishedontheportal.
InFebruary2010,BANKSETAsentafive-persondelegationfromthesectortoattendtheTechnoConferencepresentedby the American Society on Training and Development(ASTD). The aimwas to research and benchmark bestpractices in the latest and future technologies that aidlearning and development. This knowledge will assistin identifying platforms that will increase the scale andreachoflearninginterventionsandreducetheassociatedcosts.
Delivery
a. ServiceLevelAgreement(SLA) 24
b. DiscretionaryProjects 24
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Delivery
On31March2010,theBANKSETAcompleteditstenthyear inoperation,havinginitiallybeenestablishedon1April2010.Throughoutthisdecade-longperiod,theorganisationhasbeenregardedasoneofthetop-performingSETAs,consistentlymeetingandoftenexceedingitsannualperformancetargets.
OneofthecharacteristicsthatdistinguishtheBANKSETAisthescopeofitsproductrange. TheBANKSETA’s portfolio of products runs fromentry level right throughtotheseniormanagementandexecutivelevelsinthesector.Theseofferingsstartwith learnerships thatgivepost-matriculantsandgraduatesaccess toaccreditedworkplacetrainingthroughtoexecutivedevelopmentprogrammesforhigh-potentialmanagers. TheBANKSETA is also the first SETA to have introduced funding fordoctoralandpost-doctoralstudies.
ThefollowingdiagramillustratestheBANKSETA’slayeredapproachtoskillsdevelopmentinthesector.
HowBANKSETALearnershipsanddevelopmentprogrammeofferingsmatchoccupationallevels:
Executivelevel
SeniorManagementlevel
MiddleManagement&Professionals
JuniorManagement&AssociateProfessionallevels
Administrativelevels
Entrylevel
BridgingtheGap(programmeforthedisabled)
IEDP:Europe&UK
Masters&ExecutiveShortCourses,PhDandPost-doctoralfunding
MiddleManagementProgramme
JuniorManagementProgramme
Kuyasa,ThusananiPartnership&LearnershipsforEmployedPeople
LetsemaandCareerAwarenessWorkshops
CareerAwarenessGrade10-12
24 | DELIVERY
a.ServiceLevelAgreement(SLA)
Inthe2009/10financialyear,theBANKSETAunderwentachangeinitsreportinglines.Morespecifically,inNovember2009,theDepartmentofLabourhandedresponsibilityfortheSETAsover to thenewlyestablishedDepartmentofHigher Education and Training. This was essentially anadministrativechangeanddidnotaffecttheServiceLevelAgreement that BANKSETA had in place for the yearunderreview.
Building on its track record in previous years, theBANKSETA exceeded the majority of the targets setin the SLA for the period ending 31March 2010. Theorganisationscoredmore than120%againstalmostallof the targets set.A comprehensive comparisonof theBANKSETA’s performance against SLA targets for theyear can be found in Annexure D: BANKSETA NSDS2009/10Achievements(p86).
b.DiscretionaryProjects
AdultBasicEducationandTrainingDuringtheyear,243employeesinthesectorregisteredforABETlevelsonetofourand366employeessuccessfullycompletedoneormoreoftheselevels.Foreachlevel,thenumberofemployeeswho registeredorcompleted thetrainingwassignificantlyabovethetargetset.Inaddition,for the first time, graduation ceremonies were held forlearnerswhosuccessfullycompletedtheirtraining.
CareerguidanceIn partnership with the KwaZulu-Natal Department ofEducation, the BANKSETA held a series of workshopsand seminars for Life Orientation educators. In all, theworkshops reached 1 043 schools in seven districts inthe province. Through another partnership, this timewith Junior Achievement South Africa, the BANKSETApresentedcareerguidanceseminars forschool learnersin Ficksburg in the Free State, Belfast inMpumalanga,Tzaneen and Thohoyandou in Limpopo Province andEastLondon intheEasternCape.TheBANKSETAalsoparticipated in career guidance sessions inManenbergandKhayelitshaintheWesternCape.
HIV/AIDSsupportRecognising that HIV/AIDS has the potential to erodesome of the gainsmade in the sector, theBANKSETA
Council approved R1 000 000 in funding for HIV/AIDSawarenessprojectsin2009/10.Theaimistohelpretainexistingskillsandraiseawarenesssoastopreventnewinfectionswhileprovidingadvicetopeoplealready livingwithHIV/AIDS.TencompaniesappliedforthegrantsandreportedtotheBANKSETAontheimpactofthefunding.
MobiletrainingsolutionforSMEsThis project was initiated to reach the employees ofmicrofinanceSMEsinruralandoutlayingareasofSouthAfrica,offering training in theNationalCreditAct,creditmanagementandbasiccomputerliteracy.Thefacilityusedisabuswith18 touch-screencomputers,abigscreentelevisionsetandofficeequipmentsuchasphotocopiers.AfterasuccessfullaunchinMiddelburg,MpumalangainFebruary2010,theBANKSETAbusproceededtoaseriesof other Mpumalanga destinations, including Belfast,Ermelo,Mokopane,TzaneenandThohoyandou.Thepilotreportindicatedthatthemodelworkswellandplansareunderwaytorollthisouttootherprovinces.
BuildingaBetterBusinessThe 2009/10 project focused on the provision oftailormade consulting services to participating SMEs,with the aim of improving their organisational capacitytomeet their business objectives. In all, 32 companieswerereached;theserviceproviderwasalsorequiredtoenable one black-owned company to deliver the sameconsultingservice.
SMESkillsDevelopmentToolkitThistoolkitwasdevelopedtosupportskillsdevelopmentandbusinessperformanceimprovementofmicrofinanceSMEs,especiallythoseinoutlyingareas.Thetoolkitusesablended learningapproachbyallowing for theuseofmultimedia platforms. These include text articles andcasestudies,videosandaudiopresentationsinIsi-Zulu,Sepedi andAfrikaans. It also has a distance educationgatewaytoguidebeneficiariesshouldtheyopt tostudyfurther towards formal qualifications. The toolkit will bedistributedinthecomingfinancialyear.
TrainingVoucherProjectDesigned to encourage SMEs in the Banking andMicrofinancesectortoregisterwiththeBANKSETA,theTrainingVoucherProjecttargetslevypayingandnon-levypaying SMEs. The following table shows applicationsapproved, vouchers issued and vouchers redeemed intheyearending31March2010.
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BeneficiariesoftheTrainingVoucherProjectin2009/10
Numbers Amount
1 SMEapplicationsapproved 207 R2417104
2 Vouchersissued 952 R2417104
3 Totalvalueofvouchersredeemed 858 R2179510
LETSEMAlearnershipDuring2009/10,theBANKSETAcelebratedthegraduationof the sixth intake of post-matriculant learners on theLETSEMAprogramme.LETSEMA,meaning“cooperativeventure”inSesotho,wasinitiatedin2005aspartofthebanking and microfinance sector’s commitment to theFinancial Services Charter (FSC) and in support of theGrowthandDevelopmentSummitagreements.Theaimoftheprojectwastoplace5000unemployedlearnersonalearnershipbytheendofMarch2010.TheBANKSETAhas significantly exceeded this target. In fact, countingthe seventh intake in February 2010, approximately6 100 learners have been cumulatively recruited andplacednationally.
KUYASAlearnershipSincethelaunchoftheKUYASAprogramme,meaning“thebeginningofanewday”inXhosa,unemployedgraduateshave been in high demandwithin the broader BankingandMicrofinance sector.Oneof the innovations of thisparticular offering is that a new scarce skill is targetedeveryyearandthusfar,graduateshavebeenexposedtoManagementDevelopmentandCreditandRisk.Todate,KUYASA’s intakehasbeen in excessof 1000 learnersand theaim is togroomthepipeline toaddressscarceandcriticalskillswithinthesector.
Whilst completing a learnership does not guaranteepermanent employment, the track record for absorbingLETSEMAandKUYASAlearnersintothesectorhasbeenapproximately75%to85%.Thisisastatisticofwhichthesectorcanbeproud,particularlyhostemployers,whoseinvolvementiscrucialtothesuccessofthelearnerships.
Employer-driveninterventionsDespite the recession, which significantly affectedthe income of many employers within the bankingsector, employer-driven training continued and wasgiven additional impetus from the BANKSETA throughlearnership grant funding windows. There are three
categories of offerings, namely niche unemployedlearnershipsgrant funding,nicheemployed learnershipsfunding and scarce skills funding. For the two nichecategories especially, the emphasis is on encouragingemployers to trainpeoplewithdisabilities inskillsareaswhichmatchthecompanies’corefunctions.
In 2009/10, employers responded positively across allthreecategories,asthefollowingstatisticsshow:
• Niche employed learnerships: 20 applications werereceived and a total of R10 560 000was paid outto employers to implement learnerships tobuild thetechnical skills of employed staff. Approximately400 beneficiaries were supported through thisintervention.
• Niche unemployed learnerships: 10 applicationswerereceivedandR12460000waspaidoutsothatemployerscould implement learnershipstobuildthetechnicalskillsofunemployedpeople.Approximately250beneficiariesweresupported.
• Scarce skills funding: 13 applicationswere receivedand R6 101 252 was paid out to employers toimplement learnerships that address critical andscarce skills within the sector. Approximately 400beneficiariesweresupported.
To optimise the impact of these offerings, the LearningProgrammesdepartmentpaidqualityassurancesitevisitstoengageemployers,trainingprovidersandbeneficiarieson additional support required. In this way, employersbenefited from positive feedback on how they couldenhance their programmes while the BANKSETA wasabletostrengthenitsstakeholderinteraction.
Work-basedexperienceprogrammesThe BANKSETA introduced another grant to test thetypes of innovative interventions in place to addressunemployment. Employers were invited to access awork-based experience grant with the aim of placing
26 | DELIVERY
unemployed graduates onto a programme. This granttype is aimed at giving these graduates hands-onexposureinthefieldinwhichtheywanttowork,ensuringthe best match between student skills and personalityandthecompanyculture, thusultimately facilitating full-timeplacements.
Thisprocesshasgiven theLearningProgrammes teamtremendous insight on how to replicate and upscalean intervention that will create more synergy betweenproviders of formal curricula and banking industryrequirements.
DiscretionaryGrantFundingWindowprojectIntroduced in2009/10, thisproject allowedBANKSETAregisteredemployerstoapplyfordiscretionarygrantsfortheir employer-initiated development projects. In all, 55applications were received and 25 applications to thevalueofR16284375.00wereapprovedforemployersinfiveregions.Theprojectreachedover3500beneficiariesinallnineprovinces.
InternationalExecutiveDevelopmentProgramme(IEDP)EuropeIn2009/10,theIEDPEuropereplacedtheIEDPCanadathat ran in theprevious year. TheBANKSETAdeliveredthenewprogrammeinpartnershipwithalocalbusinessschoolandaninternationalone.TheSouthAfricanpartnerwas theGordon InstituteofBusinessScience (GIBS)oftheUniversityofPretoria,while the internationalpartnerwas the Rotterdam School of Management (RSM) ofErasmusUniversityinRotterdam.The20delegateswhoattendedthe2009/10programmeexploredthefollowingaction learning topics: Recommendations for AlternateRetail BankingPricingPrinciples in SouthAfrica;CreditRating Agencies; A lending product targeting low costhousing consumers and, Improving the current savingsculturewithinthetargetpopulationofLSMGroups1-5inSouthAfrica.
InternationalExecutiveDevelopmentProgramme(IEDP)UnitedKingdom(UK)The IEDP UK continued unchanged in 2009/10. Aswith the Europe programme, the BANKSETA deliveredthis programme in partnership with a local and aninternationalbusinessschool.The localpartnerwastheUniversityoftheWitwatersrandBusinessSchool(WBS),withCassBusinessSchoolCityUniversity inLondonas
theUKpartner.The20delegateswhoparticipatedwereexposed to business practice at Rothschild, GoldmanSachs, Standard Chartered, Bank of England and theInternational Financial Services (IFSL) London. Thesedelegatesexploredthefollowingtopics:aSWOTanalysisofsecuritisationinSouthAfrica;LessonsfromtheSouthAfrican experience in escaping the worst of the globalbankingcrisis;Non-traditionalbankingmodelsand,Majorthreatsfacingcommercialbanksoverthenextfiveyears.
JuniorandMiddleManagement(JaMM)PhasesIItoIVThisprogrammeconcludedinDecember2009with515delegateshavinggraduatedfromtheInstituteofBankers(IoB) programme. To take the programme to the nextlevel,meaningtoafullqualification,atenderprocesswasinitiatedtoappointaprovider.ThenewprogrammewillbeimplementedbyMilparkBusinessSchoolin2010.
Master’sandExecutiveshortcoursefundingTherehasbeenanincreaseindemandinthesectorforMaster’sfundingasaresultoftheBANKSETA’ssuccessfuleffortstomarketit.Thisproject,whichfundscoursesatHigher Education Institutions (HEI), increased in scopeduring2009/10.Some31employersappliedforfundingand23participated,withbeneficiariesineightprovinces.A total of R5 859 938.00was allocated for the periodunderreview.
Doctoralandpost-doctoralfundingIn a first for the SETA environment, the BANKSETAintroduced funding for doctoral and post-doctoralstudies.Thestartingpointwastheconstitutionofapanelto advise BANKSETA on the approval and distributionof funding. During 2009/10, 16 PhD proposals werereceivedfrom11universitiesinsixprovinces.BANKSETAhas12MemorandaofAgreement(MoA)withuniversities,including two historically disadvantaged universities,namely the University of Venda and the University ofthe Western Cape. Thus far R422 832.00 has beencommittedthroughMemorandaofAgreement.
NationalPaymentsSystemTheBANKSETAinitiatedthisprojectincollaborationwiththe Payments Association of South Africa (PASA). TheNationalPaymentsSystemisthebackboneofthebankingsector and so this is a critical project for retaining anddisseminatingknowledgeinthesector.Theprojectentailsfundingthedevelopmentofafoundationalcoursethatwill
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explorethefundamentalsoftheSouthAfricanpaymentssystem, the legislative frameworkand roleplayers.Thisprojectwillconcludeinthenextfinancialyear.
FAISrevisionportalThe BANKSETA initiated this project with the purposeofmakingarevisionplatformavailabletotheindustry inpreparation for the First Level Regulatory Examination.This portal gives learners 24-hour access to learningcontent and allows them to study and prepare for theexaminationattheirowntimeandattheirownpace.
The learning is delivered via the Internet by means ofa link from either the employer’s intranet or from theBANKSETA’s website. The learning is designed toaddresseachofthequalifyingcriteriaonwhichtheFirstLevel Regulatory Examinations are based, and shouldthereforegivethelearnersufficientandrelevantcontent,aswellasassessmentfeedbackandscenariopractice,inpreparationfortheexamination.
QualityCouncilforTradesandOccupations(QCTO)TheQCTOframeworkwillplayanincreasinglyimportantpart in the skills development in the banking andmicrofinance sector. In support of this, the BANKSETAETQAfundedandmanagedtwoseparateareasofQCTOcurriculaandqualificationsduring2009/10.Afterintensiveinvolvement by the inter-bank community, the QCTOBankWorkercurriculumandqualificationwascompletedandsubmitted to theQCTOfor registration.TheQCTOCredit/Loan Officer curriculum and qualification for themicrofinance industry was completed to the scopingstagewiththesector.
Providersoftenstruggle toadapt theirprocessesto therequirementsofaccreditationandaspartofETQA’snewdevelopmentalfunction,37providershavebeenassistedwithstakeholdereducationvisitstoassisttheirprogresstoward full accreditation. Experienced assessors andmoderatorsplayavitalpartinthesectorachievementofqualitystandards,anddespitethemorerigorouscriteriaunderthenewoperatingmodel,41newassessorsand47newmoderatorshavebeenregisteredbyETQA.
Annual
Financial
Statements
StatementofResponsibility 30
Auditor-General’sReport 31
AuditCommitteeReport 33
AccountingAuthority'sReport 35
StatementofFinancialPerformance 38
StatementofFinancialPosition 39
StatementofChangesinNetAssets 40
CashFlowStatement 41
StatementofComparisonofBudgetandActualAmounts 42
AccountingPoliciestotheAnnualFinancialStatements 43
NotestotheAnnualFinancialStatements 50
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AnnualFinancialStatements Eachyear,onorbefore31May,theBANKSETAprovidestheAuditor-Generalwithannual financial statements as legislatedby thePublic FinanceManagementAct(PMFA). These annual financial statements are prepared in accordance with theeffectiveStandardsofGenerallyRecognisedAccountingPractice(GRAP)includingany interpretations,guidelinesanddirectives issuedbytheAccountingStandardsBoard.TheannualfinancialstatementsareapprovedbytheAccountingAuthority.
The annual financial statements are prepared in a format prescribed by theDepartment to achieve consistency inpresentation,asfaraspossible,withotherSETAs.Theannualfinancialstatementsaresetoutonpages28to78ofthisreport.
30 |ANNUALFINANCIAL STATEMENTS
StatementofResponsibility
BANKSETAAnnualReport2009/10
TheAnnualFinancialStatementsfortheyearended31March2010,havebeenapprovedbytheAccountingAuthorityon27July2010intermsofsection51(1)(f)ofthePublicFinanceManagementAct(PFMA),No.1of1999asamended,andaresignedontheirbehalfby:
MaxMakhubalo EugeneEbersohnChiefExecutiveOfficer Chairperson
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Auditor-General’sReport
REPORTOFTHEAUDITOR-GENERALTOPARLIAMENTONTHEFINANCIALSTATEMENTSANDPREDETERMINEDOBJECTIVESOFTHEBANKINGSECTOREDUCATIONANDTRAININGAUTHORITYFORTHEYEARENDED31MARCH2010
REPORTONTHEFINANCIALSTATEMENTS
Introduction
I have audited the accompanying financial statementsof theBankingSectorEducation andTrainingAuthority(BANKSETA),whichcomprise thestatementoffinancialposition as at 31 March 2010, and the statement offinancialperformance,statementofchangesinnetassets,statementofcomparisonofbudgetandactualamounts,and cash flow statement for the year then ended, anda summary of significant accounting policies, otherexplanatory information and the accounting authority’sreport.
Accountingauthority’sresponsibilityforthefinancialstatements
Theaccountingauthorityisresponsibleforthepreparationand fair presentation of these financial statements inaccordance with South African Standards of GenerallyRecognised Accounting Practice (SA Standards ofGRAP)andinthemannerrequiredbythePublicFinanceManagement Act of South Africa. This responsibilityincludes: designing, implementing and maintaininginternal control relevant to the preparation and fairpresentation of financial statements that are free frommaterial misstatement, whether due to fraud or error;selecting and applying appropriate accounting policies;andmakingaccountingestimatesthatarereasonableinthecircumstances.
Auditor’sresponsibility
Asrequiredbysection188of theConstitutionofSouthAfricaandsection4ofthePublicAuditActofSouthAfricaandsection14(6)(a)of theSkillsDevelopmentAct,1998(ActNo.97of1998),myresponsibility is toexpressanopiniononthesefinancialstatementsbasedonmyaudit.
I conducted my audit in accordance with InternationalStandardsonAuditingandGeneral Notice 1570 of 2009
issued in Government Gazette 32758 of 27 November
2009.ThosestandardsrequirethatIcomplywithethicalrequirements and plan and perform the audit to obtainreasonable assurance about whether the financialstatementsarefreefrommaterialmisstatement.
Anaudit involvesperformingprocedurestoobtainauditevidence about the amounts and disclosures in thefinancial statements. The procedures selected dependon the auditor’s judgement, including the assessmentof the risks of material misstatement of the financialstatements,whetherduetofraudorerror.Inmakingthoserisk assessments, the auditor considers internal controlrelevant to theentity’spreparationand fair presentationof the financial statements in order to design auditprocedures that are appropriate in the circumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludes evaluating the appropriateness of accountingpolicies used and the reasonableness of accountingestimatesmadebymanagement, aswell as evaluatingtheoverallpresentationofthefinancialstatements.
32 |ANNUALFINANCIAL STATEMENTS
IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyauditopinion.
Opinion
Inmyopinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheBANKSETAasat31March2010,anditsfinancialperformance,anditscashflowsfortheyearthenendedanditsstatementofcomparisonofbudgetandactualamountsinaccordancewith South African Standards of Generally RecognisedAccountingPractice(SAStandardsofGRAP)andinthemannerrequiredbythePublicFinanceManagementActofSouthAfrica.
Additionalmatter
Idrawattention to thematterbelow.Myopinion is notmodifiedinrespectofthismatter:
Re-licensing
As indicated in the accounting authority’s report theSETA’s were established for a five-year period until31March2010.However, this licencewas renewedbythe Department of Higher Education and Training until31March2011.Afinalproclamationwith regard to thenewSETAlandscapeisexpectedinOctober2010.
REPORTONOTHERLEGALANDREGULATORYREQUIREMENTS
In termsof thePAAofSouthAfricaandGeneralnotice1570of2009,issuedinGovernmentGazetteNo.32758of27November2009Iincludebelowmyfindingsonthereportonpredeterminedobjectives,compliancewiththePFMAandfinancialmanagement(internalcontrol).
Findings
PredeterminedobjectivesNomatterstoreport
CompliancewithlawsandregulationsNomatterstoreport
INTERNALCONTROL
Iconsidered internal control relevant tomyaudit of thefinancial statements and the report on predeterminedobjectivesandcompliancewiththePFMA,butnotforthepurposesofexpressinganopinionon theeffectivenessofinternalcontrol.Themattersreportedarelimitedtothedeficienciesidentifiedduringtheaudit.
Nomatterstoreport
Investigationsinprogress
BANKSETA has instituted a special investigation ofdiscretionary grant payment made during the 2009-10financial year toanunderperformingserviceprovider todetermine potential fruitless and wasteful expenditure.Theinvestigationwasstillongoingatthereportingdate.
Pretoria31July2010
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AuditCommitteeReport
ReportoftheAuditCommitteerequiredbyTreasuryRegulations27.1.7and27.1.10(b)and(c)issuedintermsofthePublicFinanceManagementAct,No.1of1999,asamendedbyAct29of1999
TheBANKSETAherebypresentsthereportforthefinancialyearended31March2010
a.Introduction
TheBANKSETAanditsCouncilarecommittedtothehigheststandardsofsoundcorporategovernanceprinciplesandpractices inSouthAfrica.This isavouchedby itsnotablyethicalbehaviourandongoingfinetuningoftheprevailingcorporategovernanceprinciplesandpractices.TheAuditCommittee’scompositionandactivitiesarefullycompliantwiththerequirementsofthePublicFinanceManagementActanditendeavouredtoexceedtherequirementsoftheAct.
b.AuditCommitteemembersandattendance
TheAuditCommitteeconsistsofthememberslistedhereunderandmeets4timesperannumasperitsapprovedtermsofreference.Duringthecurrentfinancialyear4meetingswereheld.
Name of member Number of meetings attended
HennieFerreira–MFSA(Chairperson)(Resigned20Jan2010) 2
MarlevanderWalt–Investec(Appointed13May2009) 3
NitashaNaicker–AfricanBank(Chairperson)(Appointed04November2009) 2
LeelaRamdhani–Nedbank(Resigned02September2009) 2
ShaheemaSuliman–ABSA(Appointed19May2010)
Furthermore,atleastonerepresentativefromtheAuditor-General’soffice,theoutsourcedinternalauditserviceprovider,the financeofficeandmanagementarepresent at allAuditCommitteemeetings, regardlessofwhetheror not theagendaitemsdirectlyconcerntheauditoftheSETA’sFinancialStatements.
c.AuditCommitteeresponsibility
TheAuditCommitteereportsthatithasadoptedappropriateformaltermsofreferenceasitsAuditCommitteeCharter,hasregulateditsaffairsincompliancewiththisCharterandhasdischargedallitsresponsibilitiesascontainedtherein.
d.Theeffectivenessofinternalcontrol
Thesystemofcontrolsisdesignedtoprovidecosteffectiveassurancethatassetsaresafeguardedandthatliabilitiesandworkingcapitalareefficientlymanaged.InlinewiththePFMAandtheKingIIIReportoncorporategovernance
34 |ANNUALFINANCIAL STATEMENTS
requirements,InternalAuditprovidestheAuditCommitteeandmanagementwithassurancethattheinternalcontrolsareappropriateandeffective.Thisisachievedbymeansoftheriskmanagementprocess,aswellastheidentificationofcorrectiveactionsandsuggestedenhancementstothecontrolsandprocesses. Fromthevariousreportsof theInternalAuditors,theAuditReportontheAnnualFinancialStatements,themattersofemphasisandthemanagementletteroftheAuditor-General,itwasnotedthatnosignificantormaterialnon-compliancewithprescribedpoliciesandprocedureshavebeenreported.Accordingly,wecanreportthatthesystemsofinternalcontrolfortheperiodunderreviewwereeffectiveandefficient. e.Evaluationofannualfinancialstatements
TheAuditCommitteehas
• Reviewedanddiscussedtheauditedannualfinancialstatementstobeincludedintheannualreport;• ReviewedtheAuditor-General’smanagementletterandmanagement’sresponsethereto;• Reviewedchangesinaccountingpoliciesandpractices;and
TheAuditCommitteeconcursandacceptstheAuditor-General’sconclusionsontheAnnualFinancialStatementsandisoftheopinionthattheAuditedAnnualFinancialStatementsbeacceptedandreadtogetherwiththereportoftheAuditor-General.
Nitasha NaickerNitashaNaickerChairperson
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AccountingAuthority’sReport
ReportbytheAccountingOfficertotheExecutiveAuthorityandParliamentoftheRepublicofSouthAfrica.
a.Generalreviewofthestateofaffairs
The Banking Sector Education and Training Authority(BANKSETA) is aSchedule3Apublic entity establishedby the Minister of Labour on 20 March 2000, andsubsequently re-established to 31 March 2011. TheobjectiveoftheBANKSETAistodevelopskillsinandforthebroaderbankingandmicrofinanceindustriesinSouthAfrica.The followingsectors fallwithin thescopeof theBANKSETA.
• Centralbanking• Discounthouses,commercialandotherbanking• Buildingsocieties• Financialmediation• Leasefinancing• Securitiesdealings• Activitiesancillarytofinancialmediation
ThemissionoftheBANKSETAis:“Tosupporttransformationandpeopledevelopmentandthroughpartnerships,toenablestakeholderstoadvancethenational andglobalpositionof thebroaderbankingandmicrofinanceindustry.”
TheBANKSETAisthereforeresponsiblefor:
• Theidentificationofpriorityskillsinthesector• The distribution of mandatory grants to qualifying
registeredcompanies• Thedistributionofdiscretionarygrantsthatwillbenefit
the sector at large as well as individuals within thesector
• The implementation of quality assurance processesthat will enhance and ensure quality provision oftraining.
• SupportingtheimplementationofapplicablenationalstrategicobjectivesasidentifiedintheNationalSkillsDevelopmentStrategy.
BANKSETA's 80% levy income decreased by 0.4%from R329 331 000 for the 2008/09 financial year toR328 143 000 for the 2009/10 financial year. Theadministrative surplus is R3 593 000 (2008/09 –R12769000)andtheactualadministrationlevyincomefor the current financial year isR40022000 (2008/09:R41984000).
As in all the previous financial periods, there wasincreased spending on discretionary projects (2009/10:R155000000,2008/09:R98900000).Themandatorygrant payout percentage for the financial year was at96.28%(2008/09:97.79%).
Allprojectrelatedcostsaredirectlyallocatedtoprojectsand are not allocated to operational expenditure.BANKSETAhasallocatedapproximately100%(2008/09:96%)ofitsavailablesurplusfundsasat31March2010.Theremainderoftheavailablesurpluseswillbeallocatedduringthe2010/11financialyear.
Refertotheannualfinancialstatementsformoredetail.
36 |ANNUALFINANCIAL STATEMENTS
b.PaymentsandremunerationintheBANKSETA
MembersoftheAccountingAuthorityNote:Thepaymentsindicatedbelowarepaidtothenominatingorganisationsandnottotheindividualrepresentatives.AllpaymentsareinrespectofCouncilmeetingorCommitteemeetingattendancefees.
Name Constituency Amount
EEbersohn SASBO R5200
SNgidi SBSA R5400
HFerreira MFSA R4800
SMthembu/GFipaza FirstRand R5600
RRamabulana ABSA R4000
JJeftha SARB R3200
SZinn Nedbank R2400
IRamputa SASBO R4800
VHattingh SASBO R7200
JKokela SASBO R1600
BVenter SASBO R6400
EZeeman IBSA R5600
NNaicker AfricanBank R3200
TheChiefExecutiveOfficerDuetothenatureoftheBANKSETA,theChiefExecutiveOfficerisalsoresponsibleforallfinancialmatters.
Annual and other income Amount (Pre-tax) Notes
Pension R113086.57
Medical R21303.00
Baseremuneration R1039042.87 Includedaspartofpackage(carandsubsistenceallowances)
Totalguaranteedcost-to-companypackage
R1173432.44 Benchmarkedannually
Non-guaranteed(atrisk)remuneration
R702139.50 TheBANKSETAincentiveschemeisbenchmarkedandnegotiatedannually.Theincentiveisdependentonpersonalperformance,SETAcorefunction(department)performance,theresultsofanexternalevaluationofSETAperformanceandtheretentionstrategyofBANKSETA.
Totalguaranteedandnon-guaranteed(atrisk)remuneration
R1875571.94
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c.Businessaddress
PhysicaladdressBANKSETAThornhillOfficeParkBlockNo.1594BekkerRoadMIDRAND1685
PostaladdressP.O.Box11678VORNAVALLEY1686
CallCentre 0861020002Tel 0118059661Fax 0118058348Website www.bankseta.org.za
d.Eventsafterthebalancesheetdate
Therewerenoeventssubsequent to thebalancesheetdate and up to the date of approval of these financialstatementsthatrequireanyelaboration.
e.Corporategovernance
IntermsoftheSkillsDevelopmentAct,totaladministrationcosts may not exceed 10% of total levies received. Itgivesmegreatpleasuretoreportthattotaladministrationexpenditure in the BANKSETA is again running belowthe allowed10%.Our aim has always been to run theBANKSETAona leanandefficientbasisand IattributetheSETA’ssuccessinthisregardtothequalityofpeopleinitsemploy,thequalityofitshumanresourcespracticesanditssoundbusinessmodel.
The BANKSETA has an independent Audit Committee,which is satisfied that the necessary checks andbalancesareinplace.TheAuditCommittee’sfunctionsareinlinewiththeAuditCommitteeCharterandcomplywith principles of good corporate governance and therequirements of the Public Finance Management Act.
The functions of the Audit Committee include a reviewandanupdateoftheriskanalysis,bymanagementandindependentlyfrominternalaudit.AlsorefertotheAuditCommittee’sreportfordetail.
A materiality framework is in place and no instanceoccurredduringtheyearthatrequiredanimplementationofthepolicydevelopedinthematerialityframework.
f. Re-licensingofBANKSETA
SETAswerere-establishedforafive-yearperioduntil31March2010.TheDepartmenthassubsequentlyrenewedthelicenceoftheBANKSETAforonemoreyearuntil31March2011.
g.SoccerWorldCupclothingandtickets
The Standing Committee on Public Accounts (SCOPA)has requested that the SETA disclose all expenditurerelatingtotheSoccerWorldCup.BANKSETApurchased34 Soccer World Cup jerseys to the total value ofR22440duringOctober2009aspartoftheannualstaffteambuilding.ThejerseyswereBANKSETAbranded.
BANKSETAdidnotincuranyfurtherexpenditurerelatingtotheSoccerWorldCupclothingandticketssubsequenttotheyearend.
EugeneEbersohnChairperson
38 |ANNUALFINANCIAL STATEMENTS
STATEMENTOFFINANCIALPERFORMANCEFORTHEYEARENDED31MARCH2010
2009/10 2008/09Note R’000 R’000
RevenueSkillsDevelopmentLevy:incomefromnon-exchangetransactions 2 328 143 329331SkillsDevelopmentLevy:penaltiesandinterestfromnon-exchangetransactions
1 016 937
Donationsforspecialprojects 14 12 044 23884Investmentincome 3 11 051 19828Otherincome 4 8 -
TOTAL REVENUE 352 262 373980
ExpenditureEmployergrantandprojectexpenditure 5 (355 495) (298592)Administrationexpenditure 6 (36 437) (28215)Specialprojectexpenditure 14 (12 044) (23884)
TOTAL EXPENDITURE (403 976) (350691)
NET (DEFICITS)/ SURPLUS FOR THE YEAR 1 (51 714) 23289
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STATEMENTOFFINANCIALPOSITIONASAT31MARCH2010
2009/10 2008/09Note R’000 R’000
ASSETS
Non-current assetsProperty,plantandequipment 7 812 1089Intangibleassets 8 47 22
Current assetsAccountsreceivablefromnon-exchangetransactions 9 887 286Otheraccountsreceivable 10 328 491Cashandcashequivalents 11 125 792 150535Donorfundingreceivable 14.2 - 302Consumables 87 39
Total assets 127 953 152764
LIABILITIESCurrent liabilities
Tradeandotherpayablesfromexchangetransactions 12 12 250 11576Tradeandotherpayablesfromnon-exchangetransactions 13 26 413 21808Donorfundingreceivedinadvance 14 23 902 2278
Total liabilities 62 565 35662
NET ASSETS 65 388 117102
NET ASSETS AND LIABILITIES
Funds and reservesAdministrationreserve 859 1 110 Employergrantreserve 202 210 Discretionaryreserve 64 327 115782
TOTAL FUNDS AND RESERVES 65 388 117102
40 |ANNUALFINANCIAL STATEMENTS
STATE
MENTOFCHANGESIN
NETASSETS
FORTHEYEARENDED31MARCH2010
Ad
min
istr
atio
n re
serv
eE
mp
loye
r g
rant
re
serv
eD
iscr
etio
nary
re-
serv
eU
nap
pro
pri
ated
su
rplu
sTo
tal
No
tes
R’0
00R
’000
R’0
00R
’000
R’0
00
Bal
ance
at
31 M
arch
200
8 8
59
55
92
891
-
93
805
EffectofchangeinAccountingPolicy
218
--
-8
Res
tate
d b
alan
ce 8
67
55
92
891
- 9
3 81
3 NetsurplusperStatemento
fFinancialPerform
ance
-
-
-
23289
23289
Allocationofunapp
ropriatedsurplus
11276
96143
4377
(23289)
-
ExcessreservestransferredtoDiscretionaryreserve
(1252
6)
(5988
)18514
-
-
Bal
ance
at
31 M
arch
200
9 1
110
2
10
115
782
-
1
17 1
02
NetsurplusperStatemento
fFinancialPerform
ance
--
-(51714)
(51714)
Allocationofunapp
ropriatedsurplus
13593
5088
(60395)
51714
-
ExcessreservestransferredtoDiscretionaryreserve
(3844
)(5096
)8940
-
-
Bal
ance
at
31 M
arch
201
0 8
59
202
6
4 32
7 -
6
5 38
8
Anam
ountofR
859000(2008/09:R1110000)isretainedintheadm
inistrationreserveequaltothecarryingvalueofP
roperty,plantandequipment,andintangible
assets.
Anam
ountofR202000(2008/09:R210000)isdisclosedintheemployergrantreservefornew
lyregisteredmem
bercom
panies,participatingafterthe
legislativecut-offdateandnew
schem
eyearleviesreceivedfortheperiodending31March.Refertonote16.2and16.3fordisclosureofthiscontingentliability.
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CASHFLOWSTATEMENTFORTHEYEARENDED31MARCH2010
2009/10 2008/09Note R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating activitiesCashreceiptsfromstakeholders 329 214 335714
Levies,interestandpenaltiesreceived 329 471 320117Othercashreceiptsfromstakeholders ( 257) 15597
Cashpaidtostakeholders,suppliersandemployees (398 296) (379112)Grantsandprojectpayments (350 294) (311740)Specialprojects (12 044) (23962)Compensationofemployees (16 045) (11075)Paymentstosuppliersandother (19 912) (32335)
Cashutilisedinoperations 15 (69 082) (43398)Interestreceived 3 10 865 19624Grants,transfersandfundsreceived 14 33 668 23640
Net cash outflow from operating activities (24 549) (134)
CASH FLOW FROM INVESTING ACTIVITIESPurchaseofproperty,plantandequipment 7 ( 194) (594)
Net cash outflow from investing activities ( 194) (594)
Net decrease in cash and cash equivalents (24 743) (728)Cash and cash equivalents at beginning of year 11 150 535 151263Cash and cash equivalents at end of year 11 125 792 150535
42 |ANNUALFINANCIAL STATEMENTS
STATE
MENTOFCOMPA
RISONOFBUDGETAND
ACTU
ALAMOUNTS
FO
RTHEYEARENDED31MARCH2010
No
tes
Ap
pro
ved
B
udg
etFi
nal B
udg
etA
ctua
l
Fav
our
able
/ (U
nfav
our
able
) va
rian
ce 2
009/
10
200
9/10
20
09/1
020
09/1
0R
’000
R’0
00R
’000
R’0
00R
EV
EN
UE
SkillsDevelop
mentLevytransferfrom
non-exchangetransactions
26.1
306
240
306240
328143
21903
SkillsDevelop
mentLevypenaltiesandinterestfrom
non-exchangetransactions
26.2
-
-
1 0
16
1 0
16
InvestmentIncom
e26
.3 1
1 00
0 1
1 00
0 11051
51
Otherincome
-
-
8
8
Tota
l Rev
enue
317
240
3
17 2
40
340
,218
2
2 97
8
EX
PE
ND
ITU
RE
Employergrantandprojectexpenditure
26.4
(278
960
)(278960)
(355495)
(76535)
Adm
inistrationexpenditure
26.5
(3793
0)(37930)
(36437)
1493
Tota
l Exp
end
itur
e (3
16 8
90)
(316
890
) (3
91 9
32)
(75
042)
NE
T S
UR
PLU
S/(
LOS
S) F
OR
TH
E Y
EA
R 3
50
350
(5
1 71
4) (5
2 06
4)
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ACCOUNTINGPOLICIESTOTHEANNUALFINANCIALSTATEMENTSFORTHEYEARENDED31MARCH2010
1. Basisofpreparation
Theprincipalaccountingpoliciesadoptedinthepreparationofthesefinancialstatementsaresetoutbelowandare,inallmaterialrespects,consistentwiththoseofthepreviousyear,exceptasotherwiseindicated.
ThefinancialstatementshavebeenpreparedinaccordancewiththeeffectiveStandardsofGenerallyRecognisedAccountingPractices(GRAP)includinganyinterpretations,guidelinesanddirectivesissuedbytheAccountingStandardsBoard.
Theannual financial statementshavebeenpreparedon thehistorical costbasis, exceptwhereadjusted forpresent/fairvaluesasrequiredbytherespectiveaccountingstandards.
2. Currency
ThesefinancialstatementsarepresentedinSouthAfricanRandssincethatisthecurrencyinwhichthemajorityoftheentitytransactionsaredenominated.
3. Revenuerecognition
3.1 LevyincomeTheaccountingpolicyfortherecognitionandmeasurementofskillsdevelopmentlevyincomehasbeenamendedonthebasisofarevisedinterpretationoftheSkillsDevelopmentAct,ActNo97of1998asamendedandtheSkillsDevelopmentLeviesAct,ActNo9of1999,asamended.
SkillsDevelopmentLevy(SDL)transfersarerecognisedwhen it isprobablethat futureeconomicbenefitswillflowtotheSETAandthesebenefitscanbemeasuredreliably.ThisoccurswhentheDepartmenteithermakesanallocationorpayment,whichevercomesfirst,totheSETA,asrequiredbySection8oftheSkillsDevelopmentLeviesAct,1999(ActNo.9of1999),asamended.
Intermsofsection3(1)and3(4)oftheSkillsDevelopmentLeviesAct,1999(ActNo.9of1999)asamended,registeredmembercompaniesoftheSETApayaskillsdevelopmentlevyof1%ofthetotalpayrollcosttotheSouthAfricanRevenueServices(SARS),whocollectstheleviesonbehalfoftheDepartment.CompanieswithanannualpayrollcostlessthanR500000areexemptedinaccordancewithsection4(b)oftheLeviesActasamended,effective1August2005.
80%ofskillsdevelopmentleviesarepaidovertotheSETA(netofthe20%contributiontotheNationalSkillsFund).TheSETAwasnotinapositiontoverifythatSARShascollectedallpotentialskillslevyincome.
RevenueisadjustedforinterSETAtransfersduetoemployerschangingSETA’s.SuchadjustmentsareseparatelydisclosedasinterSETAtransfers.TheamountoftheinterSETAadjustmentiscalculatedaccordingtothemostrecentStandardOperatingProcedureissuedbytheDepartment.
44 |ANNUALFINANCIAL STATEMENTS
WhenanewemployeristransferredtotheSETA,theleviestransferredbytheformerSETAarerecognisedasrevenueandallocatedtotherespectivecategorytomaintainitsoriginalidentity.
3.2 InterestandpenaltiesInterestandpenaltiesreceivedontheskillsdevelopmentlevyarerecognisedontheaccrualbasis.
3.3 FundsallocatedbytheNationalSkillsFundforSpecialProjectsFundstransferredbytheNationalSkillsFund(NSF)areaccountedforinthefinancialstatementsoftheSETAasaliabilityuntiltherelatedeligiblespecialprojectexpensesareincurred,whentheliabilityisextinguishedandrevenuerecognised.
Property,plantandequipmentacquiredforNSFSpecialProjectsarecapitalisedinthefinancialstatementsoftheSETA,astheSETAcontrolssuchassetsforthedurationoftheproject.SuchassetsmayhoweveronlybedisposedofintermsofagreementandspecificwritteninstructionsbytheNSF.
3.4 GovernmentgrantsandotherdonorincomeConditionalgovernmentgrantsandotherconditionaldonor funding received is recordedasdeferred incomewhentheybecomereceivableandisthenrecognisedasandwhentheconditionsaremet.Unconditionalgrantsreceivedarerecognisedwhentheamountshavebeenreceived.
3.5 InvestmentincomeInterest income isaccruedona timeproportionbasis, taking intoaccount theprincipaloutstandingand theeffectiveinterestrateovertheperiodtomaturity.
4. Grantsandprojectexpenditure
Aregisteredemployermayrecoveramaximumof50%ofitstotallevypaymentasamandatoryemployergrant(excludinginterestandpenalties)bycomplyingwiththegrantcriteriainaccordancewiththeSkillsDevelopmentAct,1998SETAGrantRegulationsregardingmoniesreceivedandrelatedmatters(TheSETAGrantRegulations).
Mandatorygrants Grantsareequivalentto50%ofthetotalleviescontributedbyemployerstotheSETAduringthecorresponding
financialperiod.
Discretionarygrants ASETAmayallocatediscretionarygrantstoemployerswhohavesubmittedanapplicationforadiscretionary
grantintheprescribedformwithintheagreeduponcut-offperiod.
Discretionaryprojectexpenditure ASETAmayoutofsurplusmoniesandinaccordancewithcriteriaasdefinedintheSETAGrantRegulations
allocatefundstoemployersandotherassociationsororganisations.ThecriteriaforallocatingfundsareapprovedbytheSETACouncil.Wherenecessaryitcanberequiredofinterestedemployers,associationsororganisationstocompleteandsubmitafundingapplicationforconsiderationandapprovalbytheSETA.
Projectexpenditurecomprise: -coststhatrelatedirectlytothespecificcontract; -coststhatareattributabletocontractactivityingeneralandcanbeallocatedtotheproject;and -suchothercostsasarespecificallychargeabletotheSETAunderthetermsofthecontract.
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Suchcostsareallocatedusingmethodsthataresystematicandrationalandareappliedconsistentlytoallcostshavingsimilarcharacteristics.
Projectcostsarerecognisedasexpensesintheperiodinwhichtheyareincurred.
RetrospectiveadjustmentsbySARS TheSETArefundsamountstoemployersintheformofgrants,basedoninformationfromSARS.WhereSARS
retrospectivelyamendstheinformationonleviescollected,itmayresultingrantsthathavebeenpaidtocertainemployersthatareinexcessoftheamounttheSETAispermittedtohavegrantedtoemployers.Areceivablerelatingtotheoverpaymenttotheemployerinearlierperiodsisraisedastheamountofsuchgrantoverpayment,netofbaddebtsandprovisionforirrecoverableamounts.
5. Irregularandfruitlessandwastefulexpenditure
Irregularexpendituremeansexpenditureincurredincontraventionof,ornotinaccordancewith,arequirementofanyapplicablelegislation,including:
-ThePFMA, -TheSkillsDevelopmentAct(theAct),1998(ActNo.97of1998)asamended
Fruitlessandwastefulexpendituremeansexpenditurethatwasmadeinvainandwouldhavebeenavoidedhadreasonablecarebeenexercised.
Allirregularandfruitlessandwastefulexpenditureisrecognisedagainsttherespectiveclassofexpenseintheperiodinwhichtheyareincurred.
6. Property,plantandequipment
Property,plantandequipmentisstatedatcostlessanysubsequentaccumulateddepreciationandadjustedforanyimpairments.Depreciationischargedsoastowriteoffthecostofassetsovertheirestimatedusefullives,usingthestraightlinemethod.
Theestimatedusefullives,residualvaluesanddepreciationmethodarereviewedateachyearend,withtheeffectofanychangesinestimateaccountedforonaprospectivebasis.
Where thecarryingamountof anasset is greater than its estimated recoverable amount, it iswrittendownimmediatelytoitsrecoverableamount(i.e.impairmentlossesarerecognised.)
Thegainorlossondisposalofproperty,plantandequipmentisdeterminedasthedifferencebetweenthesaleproceedsandthecarryingamountandaretakenintoaccountindeterminingoperatingprofit.
7. Intangibleassets
Intangible assets is stated at cost less any subsequent accumulated amortisation and adjusted for anyimpairments.Amortisationischargedsoastowriteoffthecostofassetsovertheirestimatedusefullives,usingthestraightlinemethod.
Theestimatedusefullives,residualvaluesandamortisationmethodarereviewedateachyearend,withtheeffectofanychangesinestimateaccountedforonaprospectivebasis.
46 |ANNUALFINANCIAL STATEMENTS
Where thecarryingamountof anasset is greater than its estimated recoverable amount, it iswrittendownimmediatelytoitsrecoverableamount(i.e.impairmentlossesarerecognised.)
Thegainorlossondisposalofintangibleassetisdeterminedasthedifferencebetweenthesaleproceedsandthecarryingamountandaretakenintoaccountindeterminingoperatingprofit.
8. Leasing
FinanceleasesconsistentwiththedefinitionsetoutintheTreasuryRegulationsrefertoacontractthattransferstherisks,rewards,rightsandobligationsincidentaltoownershiptothelesseeandarerecordedasapurchaseofequipmentbymeansoflong-termborrowing.Allotherleasesareclassifiedasoperatingleases.
Paymentsmade under operating leases (leases other than finance leases) are charged to theStatement ofFinancialPerformanceonastraight-linebasisovertheperiodofthelease.Whenanoperatingleaseisterminatedbeforetheleaseperiodhasexpired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognizedasanexpenseintheperiodinwhichterminationtakesplace.
9. Provisions
ProvisionsarerecognisedwhentheSETAhasapresentobligationasaresultofapasteventanditisprobablethatthiswillresultinanoutflowofeconomicbenefitsthatcanbeestimatedreliably.Long-termprovisionsarediscountedtonetpresentvalue.
Thecostofemployeebenefitsisrecognisedduringtheperiodinwhichtheemployeerenderstherelatedservice.Employeeentitlementsarerecognisedwhentheyaccruetoemployees.AprovisionismadefortheestimatedliabilityasaresultofservicesrenderedbyemployeesuptotheStatementofFinancialPositiondate.ProvisionsincludedintheStatementofFinancialPositionareprovisionsforleave(basedonthecurrentsalaryrates)andterminationbenefits.
Terminationbenefitsarerecognisedandexpensedonlywhenthepaymentismade.
NoprovisionhasbeenmadeforretirementbenefitsastheSETAdoesnotprovideforretirementbenefitsforitsemployees.
10.Grantsandprojects
Mandatoryanddiscretionarygrantpayments AliabilityisrecognisedforgrantpaymentsoncethespecificcriteriasetoutintheSETAGrantRegulationhave
beencompliedwithbymembercompaniesanditisprobablethattheSETAwillapprovethepayment.TheliabilityismeasuredatthenetpresentvalueoftheexpectedfuturecashoutflowasdeterminedinaccordancewiththeAct.Thismeasurementinvolvesanestimate,basedontheamountofleviesreceived.
Discretionaryprojects Whereaprojecthasbeenapproved,buthasnotbeenaccruedfor,itisdisclosedascommitmentsinthenotes
tothefinancialstatements.
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11. Financialinstruments
Recognition FinancialassetsandfinancialliabilitiesarerecognisedontheSETA’sStatementofFinancialPositionwhenthe
SETAbecomesapartytothecontractualprovisionsoftheinstrument.
Financial assets Investmentsarerecognisedandderecognisedonatradedatewherethepurchaseorsaleofaninvestmentis
underacontractwhosetermsrequiredeliveryoftheinvestmentwithinthetimeframeestablishedbythemarketconcerned,andare initiallymeasuredat fair value,netof transactioncostsexcept for thosefinancialassetsclassifiedasatfairvaluethroughprofitorloss,whichareinitiallymeasuredatfairvalue.
Financialassetscanbeclassifiedintothefollowingspecifiedcategories:financialassetsas‘atfairvaluethroughprofitorloss’(FVTPL),‘held-to-maturityinvestments’,‘available-for-sale’(AFS)financialassetsand‘loansandreceivables’.Theclassificationdependsonthenatureandpurposeofthefinancialassetsandisdeterminedatthetimeofinitialrecognition.
AllfinancialassetsoftheSETAwerecategorisedasloansandreceivables
LoansandreceivablesTradereceivables,loans,andotherreceivablesthathavefixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedas‘loansandreceivables’.Loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethodlessanyimpairment.Interestincomeisrecognisedbyapplyingtheeffectiveinterestrate,exceptforshort-termreceivableswheretherecognitionofinterestwouldbeimmaterial.
EffectiveinterestmethodTheeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofafinancialassetandofallocatinginterestincomeovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialasset,or,whereappropriate,ashorterperiod.
ImpairmentoffinancialassetsFinancial assets are assessed for indicators of impairment at eachbalance sheet date. Financial assets areimpairedwherethereisobjectiveevidencethat,asaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionofthefinancialasset,theestimatedfuturecashflowsofthe investmenthavebeenimpacted.Forfinancialassetscarriedatamortisedcost,theamountoftheimpairmentisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.
The carrying amount of the financial asset is reducedby the impairment loss directly for all financial assetswiththeexceptionoftradereceivableswherethecarryingamountisreducedthroughtheuseofanallowanceaccount.Whenatradereceivable isuncollectible, it iswrittenoffagainsttheallowanceaccount.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainsttheallowanceaccount.Changesinthecarryingamountoftheallowanceaccountarerecognisedinthesurplusordeficit.
Financial liabilities FinancialliabilitiesareclassifiedaseitherfinancialliabilitiesatFVTPLorotherfinancialliabilities.
Accountandotherpayablesdonotbearinterestandarestatedattheirnominalvalue.
48 |ANNUALFINANCIAL STATEMENTS
FinancialliabilitiesatFVTPLFinancialliabilitiesareclassifiedasatFVTPLwherethefinancialliabilityiseitherheldfortradingoritisdesignatedasatFVTPL.
AllfinancialliabilitiesoftheSETAwereclassifiedasotherfinancialliabilities.
OtherfinancialliabilitiesOtherfinancialliabilitiesareinitiallymeasuredatfairvalue,netoftransactioncosts. Otherfinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod,withinterestexpenserecognisedonaneffectiveyieldbasis.
Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofafinancialliabilityandofallocatinginterestexpenseovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashpaymentsthroughtheexpectedlifeofthefinancialliability,or,whereappropriate,ashorterperiod.
12. Reserves
NetassetsisclassifiedbasedontherestrictionsplacedonthedistributionofmoniesreceivedinaccordancewiththeRegulationsissuedintermsoftheSkillsDevelopmentAct,1998(ActNo97of1998)asamendedasfollows:-Administrationreserve-Employergrantreserve-Discretionaryreserve-Unappropriatedsurplus
EmployerlevypaymentsaresetasideintermsoftheSkillsDevelopmentActandtheregulationsissuedintermsoftheAct,forthepurposeof:
2009/10 2008/09% %
AdministrationexpenditureoftheSETA 10 10MandatoryWorkplaceSkillsGrant 50 50Discretionarygrantsandprojects 20 20ReceivedbytheSETA 80 80ContributiontotheNationalSkillsFund 20 20
100 100
Inaddition,contributionsreceivedfrompublicserviceemployersinthenationalorprovincialspheresofgovernmentmaybeusedtofunditsadministrationcosts.
InterestandpenaltiesreceivedfromSARSaswellasinterestreceivedoninvestmentsareutilisedfordiscretionarygrantprojects.
Surplusfundsintheadministrationreserveandunallocatedfundsintheemployergrantreservearemovedtothediscretionaryfundreserve.Provision ismade inmandatorygrantreservefornewlyregisteredcompanies,participatingafterthelegislativecut-offdate.
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13. Comparativefigures
Wherenecessary,comparativefigureshavebeenadjustedtoconformtochangesinpresentationinthecurrentyear.
14.Taxation
Noprovisionhasbeenmadefortaxation,astheSETAisexemptfromincometaxintermsofSection10oftheIncomeTaxAct,1962(Act58of1962).
15. ConsumableInventory
Consumables are recognised as an asset on the date of acquisition and it ismeasured at the cost of theacquisition.Itissubsequentlyrecognisedinsurplusordeficitasitisconsumed.
NOTESTOTHEANNUALFINANCIALSTATEMENTSFORTHEYEARENDED31MARCH2010
1. ALLOCATIONOFNETSURPLUS/(DEFICIT)FORTHEYEARTORESERVES:
Employer grants reserve
Discretionary reserve
Total per Statement
of Financial Performance
2008/09
Total per Statement
of Financial Performance
2009/10
Administration reserve
Mandatory skills grant
Discretionary grants
Special projects
Projects Total discretionary
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Total revenue 373980 352 262 40030 205127 82994 12044 12067 107105Skillsdevelopmentlevy:incomefromnon-exchangetransactions
Adminlevyincome(10%) 40984 40 022 40022 - - - - -Grantlevyincome(70%) 288347 288 121 - 205127 82994 - - 82994
Skillsdevelopmentlevy:penaltiesandinterestfromnon-exchangetransactions 937 1 016 - - - - 1 016 1 016 Donationsforspecialprojects 23884 12 044 - - - 12044 - 12044Investmentincome 19828 11 051 - - - - 11051 11051Otherincome - 8 8 - - - - -
Total expenditure (350691) (403 976) (36437) (200039) 1 (12044) (155457) (167500)Administrationexpenditure (28215) (36 437) (36437) - - - - -Specialprojectsexpenditure (23884) (12 044) - - - (12044) - (12044)Employergrantsandprojectexpenditure (298592) (355 495) - (200039) 1 - (155457) (155456)
Net surplus/(deficit) per Statement of Financial Performance allocated 23289 (51 714) 3593 5088 82995 - (143390) (60395)
50 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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1. ALLOCATIONOFNETSURPLUS/(DEFICIT)FORTHEYEARTORESERVES:
Employer grants reserve
Discretionary reserve
Total per Statement
of Financial Performance
2008/09
Total per Statement
of Financial Performance
2009/10
Administration reserve
Mandatory skills grant
Discretionary grants
Special projects
Projects Total discretionary
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Total revenue 373980 352 262 40030 205127 82994 12044 12067 107105Skillsdevelopmentlevy:incomefromnon-exchangetransactions
Adminlevyincome(10%) 40984 40 022 40022 - - - - -Grantlevyincome(70%) 288347 288 121 - 205127 82994 - - 82994
Skillsdevelopmentlevy:penaltiesandinterestfromnon-exchangetransactions 937 1 016 - - - - 1 016 1 016 Donationsforspecialprojects 23884 12 044 - - - 12044 - 12044Investmentincome 19828 11 051 - - - - 11051 11051Otherincome - 8 8 - - - - -
Total expenditure (350691) (403 976) (36437) (200039) 1 (12044) (155457) (167500)Administrationexpenditure (28215) (36 437) (36437) - - - - -Specialprojectsexpenditure (23884) (12 044) - - - (12044) - (12044)Employergrantsandprojectexpenditure (298592) (355 495) - (200039) 1 - (155457) (155456)
Net surplus/(deficit) per Statement of Financial Performance allocated 23289 (51 714) 3593 5088 82995 - (143390) (60395)
52 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
2. SKILLSDEVELOPMENTLEVYINCOMEFROMNON-EXCHANGETRANSACTIONS
Note 2009/10 2008/09R’000 R’000
ThetotallevyincomepertheStatementofFinancialPerformanceisasfollows:
Levyincome:Administration 40 022 40984Leviesreceived 39 946 39829LeviesreceivedfromSARS 39851 39803InterSETAtransfersin 109 32InterSETAtransfersout (14) (6)Leviesaccrued 76 1155
Levyincome:EmployerGrants 205 127 205879Leviesreceived 205 323 199528LeviesreceivedfromSARS 204849 199399InterSETAtransfersin 543 161 InterSETAtransfersout (69) (32)Leviesaccrued ( 196) 6351
Levyincome:DiscretionaryGrants 82 994 82468Leviesreceived 83 186 79823LeviesreceivedfromSARS 82996 79772InterSETAtransfersin 218 64InterSETAtransfersout (28) (13)Leviesaccrued ( 192) 2645
328 143 329331
3. INVESTMENTINCOME2009/10 2008/09R’000 R’000
InterestincomeBankdeposits 10865 19624Receivable 186 204
11 051 19828
4. OTHERINCOME2009/10 2008/09 R’000 R’000
Otherincomecomprises:Insuranceclaimreceived 8 -
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5. EMPLOYERGRANTANDPROJECTEXPENDITURE
Note 2009/10 2008/09 R’000 R’000
Mandatorygrants 200 039 199736Disbursed 196 101 217737Provisionsandaccruals 3938 (18001)
Discretionarygrants (1) (26)Disbursed (7) (21)Provisionsandaccruals 6 (5)
Projectexpenditure 5.1 155 457 98882Disbursed 154200 94023Provisionsandaccruals 1257 4859
355 495 298592
5.1 Project expenditure consist of: Directprojectcosts 155 457 98882
6. ADMINISTRATIONEXPENDITURE2009/10 2008/09 R’000 R’000
Depreciation/Amortisation 438 322Lossonsaleofassets 7 29 Operatingleaserentals(minimumleasepayments) 1 452 1407
Buildings 1332 1254Plant,machineryandequipment 120 153
Maintenance,repairsandrunningcosts-other 121 34Advertising,marketingandpromotions,communication 2 801 2137Entertainmentexpenditure 384 156Consultancyandserviceproviderfees 7 148 6741Legalfees - 17Costofemployment 6.1 16 045 11075Travelandsubsistence 1 399 1039Stafftraininganddevelopment 764 677Remunerationtomembersoftheaccountingauthority 68 67Externalauditor’sremuneration-Auditfees 1 019 376Baddebtswrittenoff 10 22 Allowancefordoubtfuldebts (6) (1)Other 4 787 4116
Otheradministrationexpenditure 2152 1673Consultingfees 859 635Telephonecosts 553 393Workshops 417 483Printingandstationery 127 357Internalauditfees 657 577SoccerWorldCupexpenditure 22 -
36 437 28215
54 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
6.1 Cost of employmentNote 2009/10 2008/09
R’000 R’000 Salariesandwages 14 386 9768
Basicsalaries 9407 7606Performanceawards 4983 1804Temporarystaff 96 89Leavepayments (100) 269
Socialcontributions 1 659 1307Medicalaidcontributions 294 212 Pensioncontributions:definedcontributionplans 1189 973SkillsDevelopmentLevies 133 86UIF 43 36
16 045 11075AllocationofcostofemploymentAdministrationexpenditure 6 16 045 11075
Averagenumberofemployees 31 28
RefertothereportbytheAccountingAuthorityfordisclosureconcerningtheemolumentsofmembersoftheaccountingauthority,theChiefExecutiveOfficer.
7. PROPERTY,PLANTANDEQUIPMENT
CostAccumulated depreciation
Closing carrying amount
Year ended 31 March 2010 R’000 R’000 R’000Computerequipment 859 (645) 214 Officefurnitureandfittings 985 (540) 445 Officeequipment 235 (82) 153 Leaseholdimprovements 192 (192) -Balanceatendofperiod 2271 (1459) 812 Madeupasfollows:-Ownedassets 2271 (1459) 812
Year ended 31 March 2009 CostAccumulated depreciation
Closing carrying amount
R’000 R’000 R’000Computerequipment 916 (559) 357Officefurnitureandfittings 934 (443) 491Officeequipment 219 (78) 141Leaseholdimprovements 192 (92) 100 Balanceatendofperiod 2 261 (1172) 1089Madeupasfollows:-Ownedassets 2 261 (1172) 1089
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7. PROPERTY,PLANTANDEQUIPMENT(Continued)
Movement summary 2010Carrying amount
2009 Additions Disposals Depreciation
Carrying amount
2010R’000 R’000 R’000 R’000 R’000
Computerequipment 357 28 (8) (163) 214 Officefurnitureandfittings 491 53 - (99) 445 Officeequipment 141 50 - (38) 153 Leaseholdimprovements 100 - - (100) -Balanceatendofperiod 1089 131 (8) (400) 812
Movement summary 2009 Carrying amount
2008 Additions Disposals Depreciation
Carrying amount
2009 R’000 R’000 R’000 R’000 R’000
Computerequipment 294 187 (1) (123) 357Officefurnitureandfittings 482 125 (28) (88) 491Officeequipment 11 152 - (22) 141Leaseholdimprovements 50 114 - (64) 100 Balanceatendofperiod 837 578 (29) (298) 1089
7.1 Temporarily idle assets and assets not in use
CostAccumulated depreciation
Closing carrying amount
Year ended 31 March 2010 R’000 R’000 R’000Computerequipment 5 (4) 1 Officeequipment 1 (1) - Balanceatendofperiod 6 (5) 1
Temporarily idle assets and assets not in use
CostAccumulated depreciation
Closing carrying amount
Year ended 31 March 2009 R’000 R’000 R’000Computerequipment - - -Officeequipment - - -Balanceatendofperiod - - -
56 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
7.2 Property, Plant and Equipment fully depreciated but still in use
Gross carrying value2009/10 2008/09
Year ended 31 March 2010 R’000 R’000Computerequipment 352 320Officefurnitureandfittings 15 -Officeequipment 17 17Leaseholdimprovements 193 -Balanceatendofperiod 577 337
The following useful lives are used in the calculation of depreciation.-Computerequipment 3years 33.33%-Officefurnitureandfittings 10years 10%-Officeequipment 5years 20%-Leaseholdimprovements overtheleaseterm
8. INTANGIBLEASSETS
CostAccumulated amortisation
Closing carrying amount
Year ended 31 March 2010 R’000 R’000 R’000Applicationsoftware 157 (111) 47 Madeupasfollows:-Ownedassets 157 (111) 47
CostAccumulated amortisation
Closing carrying amount
Year ended 31 March 2009 R’000 R’000 R’000Applicationsoftware 95 (73) 22 Madeupasfollows:-Ownedassets 95 (73) 22
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8. INTANGIBLEASSETS(Continued)
Movement summary 2010 Carrying amount
2009 Additions Disposals Amortisation
Carrying amount
2010R’000 R’000 R’000 R’000 R’000
Applicationsoftware 22 63 - (38) 47
Movement summary 2009 Carrying amount
2008 Additions Disposals Amortisation
Carrying amount
2009 R’000 R’000 R’000 R’000 R’000
Applicationsoftware 30 16 - (24) 22
ApplicationsoftwarecomplieswiththedefinitionofIntangibleassets,whichisanidentifiablenon-monetaryassetwithoutphysicalsubstance.
Theamortisationexpensehasbeenincludedinthelineitem‘depreciation/amortisation’innote6,administrationexpenditure.
8.1 Temporarily idle assets and assets not in use
CostAccumulated depreciation
Closing carrying amount
Year ended 31 March 2010 R’000 R’000 R’000Applicationsoftware 38 (38) -
Temporarily idle assets and assets not in use
CostAccumulated depreciation
Closing carrying amount
Year ended 31 March 2009 R’000 R’000 R’000Applicationsoftware - - -
8.2 Intangible assets fully depreciated but still in use
2009/10 2008/09Gross carrying value R’000 R’000Applicationsoftware 18 18
The following useful lives are used in the calculation of amortisation.Applicationsoftware 2years 50%
58 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
9 ACCOUNTSRECEIVABLEFROMNON-EXCHANGETRANSACTIONS
Note 2009/10 2008/09 R’000 R’000
SkillsdevelopmentlevydebtorsIntersetadebtors 23 404 106 Employerreceivables 9.1 483 186Allowanceforimpairment 9.1 - (6)
887 286
9.1 Employer receivable2009/10 2008/09 R’000 R’000
EmployerreceivableOverpaymenttoemployers 483 186Allowanceforimpairment - (6)NeteffectofSARSretrospectiveadjustmentsonaffectedemployers 483 180
R483000(2008/09:R186000)wasrecognisedasareceivablerelatingtotheoverpaymenttotheemployerinearlierperiods,andisbasedontheamountofsuchgrantoverpayments.AnamountofR10000(2008/09:R8000)waswrittenoffasdoubtfuldebt.
10 OTHERACCOUNTSRECEIVABLE2009/10 2008/09 R’000 R’000
Deposits 142 142Prepaidexpenses - 145Interestreceivables 186 204
328 491
11 CASHANDCASHEQUIVALENTS
Forthepurposesofthecashflowstatement,cashandcashequivalentsincludecashonhandandinbanksandinvestmentsinfixeddeposits.Cashandcashequivalentsattheendofthefinancialyearasshowninthecashflowstatementcanbereconciledtotherelateditemsinthebalancesheetasfollows:
2009/10 2008/09 R’000 R’000
Cashatbankandonhand 50 152 25519Cashatbank 50 147 25514Cashonhand 5 5Shortterminvestments/instruments 75 640 125016Cashandcashequivalentsatendofyear 125 792 150535
Asrequired inTreasuryRegulation31.2,NationalTreasuryapprovedthebankswherethebankaccountsareheld.Theweightedaverageinterestrateonshorttermbankdepositswas7.36%(2008/09:11.55%).
TheSkillsDevelopmentActRegulationsstatethataSETAmay,ifnototherwisespecifiedbythePublicFinanceManagementAct,investthemoniesinaccordancewiththeinvestmentpolicyapprovedbytherelevantSETA.
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11 CASHANDCASHEQUIVALENTS(Continued)
TreasuryRegulation31.3requiresthat,unlessexemptedbytheNationalTreasury,theSETAasapublicentitythatislistedinSchedule3AoftheActmustinvestsurplusfundswiththeCorporationforPublicDeposits.
AstheSETAwasexemptedbytheNationalTreasuryfromtherequirementofTreasuryRegulation31.3toinvestsurplusfundswiththeCorporationforPublicDeposits,surplusfundswereinvestedinlinewithaninvestmentpolicyasrequiredbyTreasuryRegulation31.3.5.
12 TRADEANDOTHERPAYABLESFROMEXCHANGETRANSACTIONS
2009/10 2008/09 R’000 R’000
Projectcreditors 10 811 9554Sundrypayables 1 439 2 022
Tradepayables 672 775Otheraccruedexpenditure 349 727LeaveAccrual 418 520
12 250 11576
13 TRADEANDOTHERPAYABLESFROMNON-EXCHANGETRANSACTIONS
Note 2009/10 2008/09 R’000 R’000
Skillsdevelopmentgrantspayable-mandatory 17 075 16 012 SARSPayable 13.1 5 989 5677Intersetapayables 23 4 6 Employerpayables 3 345 113
26 413 21808
13.1 SARS Payable Opening Balance
R’000
Change In Estimate
R’000Addition
R’000
Closing Balance
R’0002009/10Leviesincorrectlyreceived 916 47 265 1228Leviesidentifiedfromvariancereport 4761 - - 4761
5 677 47 265 5 989 2008/09Leviesincorrectlyreceived 697 56 164 916 Leviesidentifiedfromvariancereport 15130 (10369) - 4761
15827 (10313) 164 5677
AnamountofR1228000(2008/09:916000)relatestoleviesincorrectlycontributedbyemployers,andpaidoverbySARSandDOL,afterbeingexemptedfromcontributingskillsdevelopmentleviesduetonewlegislationwhichcameintoeffect1August2005.AnamountofR4761000relatestoskillsdevelopmentleviesincorrectlyreceivedfromregisteredemployers.
60 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
14 DONORFUNDINGRECEIVEDINADVANCE2009/10 2008/09R’000 R’000
14.1 Opening balance ABSA 2 278 2522Receivedduringtheyear-LETSEMA - 22133Interestreceived 108 1205
Utilisedandrecognisedasrevenue-conditionsmet: ( 991) (23582)LETSEMA5Training&Development - (5973)LETSEMA5ProjectCost (70) (17307)LETSEMA6ProjectCost (922) (302)
Closing balance 1 395 2278
DuringtheyearBANKSETAreceivedanamountofR0(2008/09:R22133000)fromABSA.ThebalancefromlastyearwasusedtosupporttheLETSEMA6project.
2009/10 2008/09R’000 R’000
14.2 Opening balance Nedbank ( 302) -Receivedduringtheyear-NedbankLETSEMA6project 1 192 -Interestreceived 22 -
Utilisedandrecognisedasrevenue-conditionsmet: ( 849) (302)LETSEMA6ProjectCost ( 849) (302)
Closing balance 63 (302)
NedbankhascommittedtosupporttheLETSEMA6project.FundingonlyreceivedinApril2009.
Note 2009/10 2008/0914.3 Opening balance InterSETA Summit R’000 R’000
Receivedduringtheyear-InterSETASummit 2 587 -Interestreceived 28 -
Utilisedandrecognisedasrevenue-conditionsmet: (2 379) -InterSETASummit (2 379) -
Closing balance 25 236 -
DuringtheyearBANKSETAreceivedanamountofR2587000(2008/09:R0)fromotherSETAs,toadministeranInterSETAconference.
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14 DONORFUNDINGRECEIVEDINADVANCE(Continued)
2009/10 2008/09R’000 R’000
14.4 Opening balance ABSA LETSEMA 7Receivedduringtheyear-ABSALETSEMA7project 30 000 -Interestreceived 33 -
Utilisedandrecognisedasrevenue-conditionsmet: (7 825) -LETSEMA7Training&Development (3 500) -LETSEMA7ProjectCost (4 325) -
Closing balance 22 208 -
ABSAhascommittedtosupporttheLETSEMA7project.FundingonlyreceivedinMarch2010.
2009/10 2008/09R’000 R’000
TOTAL SPECIAL PROJECT INCOME RECOGNISED FOR THE YEAR PER THE STATEMENT OF FINANCIAL PERFORMANCE 12 044 23884
15 RECONCILIATIONOFNETCASHFLOWFROMOPERATINGACTIVITIESTONET(DEFICIT)/SURPLUS
2009/10 2008/09R’000 R’000
Net(deficit)/surplusasperStatementofFinancialPerformance (51 714) 23289Adjustedfornon-cashitems:Depreciation/Amortisation 438 322Lossondisposalofproperty,plantandequipment 7 29
Baddebtswrittenoff 10 22 Allowancefordoubtfuldebts ( 6) (1)Specialprojectincomerecognised (33 668) (23640)
AdjustedforitemsseparatelydisclosedInterestreceived (11 051) (19828)
Adjustedforworkingcapitalchanges:Decrease/(Increase)inotherreceivables 651 (17)(Increase)/Decreaseinreceivablesfromnon-exchangetransactions ( 604) 5463Increase/(Decrease)inpayables 26 903 (29022)IncreaseinConsumables ( 48) (15)Cashutilisedinoperations (69 082) (43398)
62 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
16 CONTINGENCIES
16.1 Retention of surplus fundsIntermsofthePFMA,allsurplusfundsasatyear-endmaybeforfeitedtoNationalTreasuryshouldanapplicationforretentionofsurplusfundsbedenied.BANKSETAsubmittedanapplicationtotheDepartmentfortheretentionof surplus funds.As in theprevious yearBANKSETAhas receivedapproval fromNationalTreasury to retainsurplusfunds.
16.2 First time employer registrationsThe Skills Development legislation allows an employer, registering for the first time, 6months to submit anapplicationforamandatorygrant.
As the reporting date it is estimated that, as a result, additionalmandatory grant expenditure of R202 000(2008/09:R134000)will bepayable.Theamount is contingenton thenumberof submission receivedandapproved.
16.3 New scheme year levies receivedAtthereportingdatelevieswerereceivedinrespectofthenewschemeyear,forwhich,theSkillsDevelopmentlegislationallowsanemployeruntil30June2011tosubmitanapplicationforamandatorygrant.
Atthereportingdateitisestimated,asaresult,thatadditionalmandatorygrantexpenditureofR0(2008/09:R76000)willbepayable.Theamountiscontingentonthenumberofsubmissionreceivedandapproved.
17 COMMITMENTS
17.1 Discretionary reserveOfthebalanceofR64327000(2008/09:R115782000)available intheDiscretionaryreserveattheendofMarch2010,R60346000hasbeenapprovedandcontractedforfutureprojectsandskillsprioritiesassetoutbelow.Amountsforexpenditurethathavealreadybeencontractedorincurred,andthereforeincludedingrantexpensesintheStatementofFinancialPerformance,arealsoindicated.
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ents
Op
enin
g
bal
ance
20
08/0
9
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
O
pen
ing
b
alan
ce
2009
/10
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
Tota
l
Fund
s co
mm
itte
d
to S
igne
d
cont
ract
s
Ind
icat
or
Pro
ject
sR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00
1Project97:W
omen’sDevelop
ment
Program
me
70(40)
(30)
--
--
-
2.8
Project142:M
asterbursaryscheme
(employedpeople)
655
(649
)(6)
--
--
-
4.1
Project149:LETS
EMA3
3(3)
--
--
--
2.8
Project165:W
omen’sDevelop
ment
Program
me2006
689
6-
(4910
)19
86(1031)
(956)
--
2.8
Project166:S
METrainingVoucher
Project2006
297
(293
)(4)
--
--
-
2.8
Project178:IEDP:C
anada
6(6)
--
--
--
2.8
Project182:BANKSETA
:Master&
ExecutiveCourses2007
88-
(88)
--
--
-
2.7
Project184:A
BETSuppo
rt2006
88-
-88
(88)
--
-
2.4
Project185:BANKSETA
:IiP
Implem
entation&Suppo
rt
558
500
(626
)43
2465
(881)
16-
4.1
Project186:LETS
EMA4
174
5(1694
)(51)
--
--
-
5.1
Project194:C
entresOfE
xcellence
2006/7
385
-(250
)13
514.8
(150)
--
4.1
Project199:BANKSETA
:2007Kuyasa
301
(301
)-
-
-
-
-
-
2.8
Project205:BANKSETA
:IEDPCanada
2007
31
(31)
-
-
-
-
-
-
2.8
Project207:BANKSETA
:Jnr&Middle
Managem
entD
evProgram
me
1570
85963
(9467
)1220
4(181)
(12024)
--
2.5
Project208:BANKSETA
:BuildingA
BetterBusiness(NW&W
C)
535
-
(269
) 2
66
(127)
(139)
--
64 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
Op
enin
g
bal
ance
20
08/0
9
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
O
pen
ing
b
alan
ce
2009
/10
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
Tota
l
Fund
s co
mm
itte
d
to S
igne
d
cont
ract
s
Ind
icat
or
Pro
ject
sR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00
4.1
Project209:BANKSETA
:LETS
EMA5
2044
5-
(1880
3)1642
(1708)
66
--
4.1
Project210:BANKSETA
:KUYA
SA
2008
9 0
91
-
(8459
)632
(632)
-
-
-
2.8
Project211:BANKSETA
:IEDPUK
2008
4510
(450
)(3908
)152
(152)
-
--
2.8
Project212:BANKSETA
:SMETraining
VoucherProject2007
2557
-
(85)
2472
(2472)
46
46
-
4.1
Project213:BANKSETA
:Bridging
Program
me-DisabledLearners
6
(6)
-
-
-
-
-
-
5.1
Project214:BANKSETA
:Centreof
Excellence2008
5499
-
(1693
)3806
455
(2606)
1655
1410
2.8
Project215:BANKSETA
:Masters&
ExecutiveCourses2008
1820
-
(1272
)548
(231)
(317)
--
5.3
Project216:BANKSETA
:ETQ
A:
ExternalM
oderation
317
500
(347
)470
(436)
(34)
--
2.7
Project217:BANKSETA
:ABET
Suppo
rt2007
349
(95)
(254
)-
-
-
--
2.8
Project219:BANKSETA
:Medium
Com
panyVoucherProject2007
602
-
(8)
594
(594)
-
-
-
1.1
Project221:BANKSETA
:Research:
FutureSkillsinBanking
699
(673
)(26)
-
-
-
-
-
2.8
Project222:BANKSETA
:SMELifelong
LearningW
orkshops
891
(129
)(762
)-
-
-
--
4.3
Project224:BANKSETA
:New
Venture
CreationSkillsProgram
me
641
-
(480
) 1
61
(161)
-
-
-
5.2
Project225:BANKSETA
:PPPNew
VentureCreation
200
-
(200
)-
-
-
-
-
3.2
Project226:BANKSETA
:Co-Operative
BankStaffDevelop
ment
616
(229
)(387
)-
-
-
--
BANKSETAAnnualReport2009/10| 65
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nnual Financial Statem
ents
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enin
g
bal
ance
20
08/0
9
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
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pen
ing
b
alan
ce
2009
/10
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pro
ved
b
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unti
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hori
ty
Uti
lised
Tota
l
Fund
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icat
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ject
sR
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00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00
3.2
Project227:BANKSETA
:Co-op
erative
BanksShareholderConsEducation
179
(26)
(153
)-
-
-
--
1.2
Project229:BANKSETA
:International
Conference2008-Planning
1544
1
26
(1670
)-
-
-
--
4.2
Project232:BANKSETA
:CIDA
Bursariesunem
ployed
28
-
(28)
-
-
-
-
-
4.2
Project235:FASSETPartnership:
ThusananiProgram
me
2859
-
(2841
)18
-
(18)
-
-
4.3
Project237:B
EENVCProject
342
-(336
)6
(6)
--
-
2.8
Project238:IntroductoryCoursein
IslamicBanking
994
-
-
994
(340)
(455)
199
1
99
4.3
Project239:N
VC-Ciproregistration
60
(2)
(58)
-
-
-
-
-
2.1
Project241:Financialeducation-
translationsandreprod
ucing
215
-
-
215
(100)
-
115
-
2.8
Project242:B
ANKSETA
IEDPCanada
Prep2008
4321
(450
)(3707
)164
(162)
37
39
-
1.1
Project243:N
eedsAnalysis-
Managem
entD
evelop
ment
400
38
(438
)-
-
-
-
-
1.1
Project244:M
FINeedsAnalysisProject
310
(59)
(251
)-
-
-
-
-
2.5
Project245:S
MEBuildingaBetter
Business
-
900
(863
)37
1 0
00
(892)
145
-
2.8
Project246:Q
CTO
PilotP
roject
-
7450
(211
)7239
2500
(2163)
7576
2390
4.1
Project247:LearnerTracking
-
300
(99)
201
(3)
(198)
--
4.2
Project248:FASSETPartership:
Thusanani
-
4400
(3709
) 6
91
(500)
(184)
7
-
66 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
Op
enin
g
bal
ance
20
08/0
9
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
O
pen
ing
b
alan
ce
2009
/10
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
Tota
l
Fund
s co
mm
itte
d
to S
igne
d
cont
ract
s
Ind
icat
or
Pro
ject
sR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00
2.2
Project249:InnovativeSolutionsfor
SME
-
-
-
-
1 1
00
(909)
191
-
2.2
Project251:S
METrainingVoucher
Project2008/09
-
3000
(1778
) 1
222
2500
(3263)
459
-
1.2
Project252:B
ANKSETA
:Career
Awareness2008/09
-
1 0
00
(989
) 1
1 1500
(1267)
244
-
1.1
Project253:B
ANKSETA
:ScarceSkills
Research
-
1300
(223
)1077
-
(354)
723
-
2.8
Project254:B
ANKSETA
:Masters&
ExecShortCourses
-
6 0
00
(443
)5557
(300)
(4270)
987
527
2.8
Project255:B
ANKSETA
:LLLLarge&
Medium2008/09
-
358
(358
)-
-
-
-
-
2.8
Project256:1
8.1NicheLearnerships-
scarceskills
-
4000
(1170
)2830
(2680)
(150)
-
-
2.8
Project257:1
8.2NicheLearnerships-
scarceskills
-
3700
(915
)2785
(2155)
(630)
-
-
2.7
Project258:A
BETSuppo
rt2008/09
-
550
(231
)319
6
00
(653)
266
-
4.2
Project259:C
IDABursaries
(unemployed)
-
1500
(1473
)27
-
(21)
6
-
4.3
Project260:N
VCProgram
me2008/09
-
700
(436
)264
(264)
-
-
-
5.2
Project261:P
PPNew
VentureCreation
Provider2008/09
-
200
(114
)86
(86)
-
-
-
4.1
Project262:Kuyasa2008/09
-
1127
2(2807
)8465
632
(7605)
1492
1492
Project263:C
EODiscretionarypoolof
funds
-
713
-
713
(713)
-
-
-
4.1
Project264:B
ridgingProgram
mefor
DisabledLearners
-
1 0
00
(746
)254
(254)
-
-
-
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bal
ance
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08/0
9
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
O
pen
ing
b
alan
ce
2009
/10
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
Tota
l
Fund
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mm
itte
d
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igne
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cont
ract
s
Ind
icat
or
Pro
ject
sR
’000
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00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00
4.1
Project265:1
8.2Internships
(employed)
-
300
-
300
(300)
-
-
-
2.8
Project266:InternationalLearningDev
Conference
-
500
(26)
474
466
(940)
--
4.1
Project267:Letsema6
-
4638
3(1249
3)3389
01294
(34422)
762
-
4.1
Project269:S
tudyto
accom
mod
ate
deafintheworkplace
-
300
(229
)71
-
-
71
-
5.1
Project270:BANKSETA
:Skills
ResourceCentre2008/09
-
5815
-
5815
(565)
(5055)
195
-
2.2
Project271:S
MELifelongLearning
Workshops2008/09
-
1 2
00
(576
)624
1
200
(475)
1349
-
5.1
Project272:BANKSETA
:IoB
Centerof
Excellence
-
1500
(300
) 1
200
-
(1200)
-
-
2.8
Project273:D
octoral&PostD
octoral
Funding
-
1930
(75)
1855
6
00
(983)
1472
849
2.8
Project274:E
DPPlanning2009
-
3000
(2764
)236
(145)
(91)
--
2.8
Project275:P
rojectEvaluation&
impactStudies
-
2 0
00
(674
)1326
1
00
(1427)
--
2.8
Project276:S
carceSkillsAnalysis&
Solutions
-
4000
-
4000
(4000)
-
-
-
2.8
Project277:S
carceSkillsFunding
-
4000
(2542
)1458
-
-
1458
-
2.8
Project278:ICTBankingSuppo
rt
TechnicianBenchmark
-
2 0
00
(276
)1724
250
(2205)
(231)
-
2.2
Project279:S
MESkillsDevToolkit
-
1500
-
1500
-
(1001)
499
-
5.1
Project280:C
entreofExcellence:
LeadershipCouncil
-
400
(40)
360
(360)
-
-
-
68 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
Op
enin
g
bal
ance
20
08/0
9
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
O
pen
ing
b
alan
ce
2009
/10
Ap
pro
ved
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cco
unti
ng
Aut
hori
ty
Uti
lised
Tota
l
Fund
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mm
itte
d
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igne
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cont
ract
s
Ind
icat
or
Pro
ject
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00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00
2.8
Project281:FAISPreparation
-
400
-89
311
-
(271)
40
-
2.8
Project282:FAIS
-
150
-
150
(43)
(107)
--
2.4
Project283:G
oodPracticeAwards
2009
-
400
-
400
(370)
(30)
-
-
2.8
Project284:InterbankTrainingMaterial
Upd
ate
-
700
-
700
-
(131)
569
-
2.8
Project285:H
IV/AIDSTrainingSuppo
rt
-
1 0
00
-
1 0
00
400
(1011)
389
-
2.5
Project286:C
o-OpbanksIoB/SBSA
2008/09
-
500
(366
)134
(134)
-
--
2.8
Project287:IEDPEurop
e2009
-
-
-
-
3992
(3992)
-
-
2.8
Project288:P
rovincialStrategy
Implem
entation
-
-
-
-
370
(266)
104
-
5.2
Project289:P
PPNew
VentureCreation
Provider
-
-
-
-
500
(465)
36
-
2.8
Project290:FAISSuppo
rt&
Implem
entation
-
-
-
-
8100
(5946)
2154
2154
2.5
Project291:C
o-op
erativeBankStaff
developm
ent
-
-
-
-
850
(760)
90
-
4.3
Project292:N
VCProgram
me
-
-
-
-
900
(864)
36
36
2.8
Project293:D
iscretionaryGrant
FundingWindo
w2009
-
-
-
-
19501
(13096)
6405
7507
2.8
Project294:R
easonableAccom
odation
Strategies
-
-
-
-
500
(14)
486
-
4.1
Project296:LETS
EMAlearnership(*)
-
-
-
-
27876
(7583)
20293
20295
4.1
Project297:18.2NicheLearnerships
-
-
-
-
13185
(8850)
4335
3610
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9
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pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
O
pen
ing
b
alan
ce
2009
/10
Ap
pro
ved
b
y A
cco
unti
ng
Aut
hori
ty
Uti
lised
Tota
l
Fund
s co
mm
itte
d
to S
igne
d
cont
ract
s
Ind
icat
or
Pro
ject
sR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
002.8
Project298:1
8.1NicheLearnerships
-
-
-
-
11350
(8580)
2770
2580
4.1
Project300:K
UYA
SA2009/10(*)
-
-
-
-
14800
(3782)
11018
9426
4.1
Project301:B
ridgingprogram
mefor
learnerswithdisability(*)
-
-
-
-
5500
(314)
5186
2248
4.1
Project302:S
carceskillsanalysis&
solutions(*)
-
-
-
-
8400
(2443)
5957
-
2.8
Project303:N
ationalPaymentS
ystem
-
-
-
-
800
(86)
714
513
2.8
Project304:IEDPUK2009
-
-
-
-
3555
(3555)
-
-
2.8
Project306:M
icrofinance
Benchmarking
-
-
-
-
800
(119)
681
-
5.1
Project308:C
entreof
Excellence:UniversityofFortH
are
-
-
-
-
2725
(2476)
249
-
2.8
Project310:BANKSETA
Managem
ent
Develop
mentP
rogram
me(*)
-
-
-
-
6 9
00
(394)
6506
5110
2.8
Project311:IEDPPlanning2010
-
-
-
-
1784
(1784)
-
-
2.8
Project314:A
STD
Techknowledg
eConference2010
-
-
-
-
500
(494)
6
-
Project315:InterSETA
Sum
mit2009
-
-
-
-
200
(200)
-
-
2.8
Project316:IEDPEurop
e-
-
-
-
4000
(27)
3973
-2.8
Project331:IEDPUK
-
-
-
-
4000
(27)
3973
-To
tal p
roje
ct e
xpen
dit
ure
8686
1128
318
(9888
2)
116
297
134871
(155457)
95711
60346
(*)Fundsallocatedtoprojectwithenddate31March201
1
70 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
17.2 Operating Leases
Totaloffutureminimumleasepaymentsundernon-cancelableleases:
2009/10 2008/09R’000 R’000
Notlaterthanoneyear 1 277 1394Laterthanoneyearandnotlaterthanfiveyears 4 18
1 282 1412
Part of the operating lease above relates to building premises used for office accommodation. The leaseagreementwasenteredintoeffective1August2003withaterminationdateof31March2005.Theleasewasextendedforfiveyearsuntil31/03/2010anditwasextendedforanotheryearuntil31March2011.Therentalandoperationalcostsescalateannuallyon1Aprilwith11%.Includedintheoperatingleasenoteistheleaseofthephotocopymachine.Theleaseagreementwasenteredintoeffective19April2005anddoesnotescalate.
18 MATERIALLOSSESTHROUGHCRIMINALCONDUCT,IRREGULAR,FRUITLESSANDWASTEFULEXPENDITURE
BANKSETAhasinstitutedaspecial investigationofdiscretionarygrantpaymentsmadeduring2009/10toaspecificserviceprovider.Onconclusionofthisinvestigationitwillbenecessarytomakeadeterminationofapotentialfruitlessandwastefulexpenditure.
19 FINANCIALINSTRUMENTS
InthecourseoftheSETAoperationsitisexposedtocredit,liquidityandmarketrisk.TheSETAhasdevelopedacomprehensiveriskstrategyintermsofTR28.1inordertomonitorandcontroltheserisks.Theriskmanagementprocessrelatingtoeachoftheserisksisdiscussedundertheheadingsbelow.
Interest rate risk TheSETAmanagesitsinterestrateriskbyeffectivelyinvestingSETAsurpluscashintermdepositswithdifferentfinancialinstitutionsaccordingtotheSETA’sinvestmentpolicy.
BANKSETAAnnualReport2009/10| 71
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ents
19 FINANCIALINSTRUMENTS(Continued)
TheSETA’sexposuretointerestrateriskandtheeffectiveinterestratesonfinancialinstrumentsatStatementofFinancialPositiondateareasfollows:
Floating rate Non-
interest bearing
TOTAL R’000Year ended 31 March 2010
AmountR’000
Effective interest
rateAmountR’000
ASSETS Cash 125792 7.36% - 125 792 Accountsreceivablefromnon-exchangetransactions 887 887 Otheraccountsreceivable 328 328 Total financial assets 125792 7.36% 1215 127 007
LIABILITIES TradeandotherPayables (12250) (12 250) Total financial liabilities - - (12250) (12 250)
Year ended 31 March 2009 Total financial assets 150535 11.55% 777 151312Total financial liabilities - (11576) (11576)
150535 11.55% (10799) 139737
Financialinstrumentshavenotbeendiscountedastheywillallbesettledorrecoveredwithin3months.Effectofdiscountingwasconsideredandfoundnottobematerial.
Credit riskFinancialassets,whichpotentiallysubjecttheSETAtotheriskofnonperformancebycounterpartiesconsistmainlyofcashandcashequivalentsandaccountsreceivable.
TheSETA limits its treasurycounter-partyexposurebyonlydealingwithwell-establishedfinancial institutionsapprovedbyNationalTreasury.TheSETA’sexposureiscontinuouslymonitoredbytheaccountingauthority.
Creditriskwithrespecttolevypayingemployersislimitedduetothenatureoftheincomereceived.TheSETA’sconcentrationofcreditriskislimitedtothebankingindustryinwhichtheSETAoperates.Noeventsoccurredinthebankingindustryduringthefinancialyearthatmayhaveanimpactontheaccountsreceivablethathasnotbeenadequatelyprovidedfor.TheSETAisexposedtoaconcentrationofcreditrisk,assignificantamountsisowedbytheSouthAfricanRevenueService(SARS).ThisconcentrationofriskislimitedasSARSisagovernmententitywithsoundreputation.Accountsreceivablearepresentednetofallowancefordoubtfuldebt.
72 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
19 FINANCIALINSTRUMENTS(Continued)
The ageing of other receivables 2009/10 2008/09Gross R’000
Impairment R’000
Gross R’000
Impairment R’000
Notpastdue - - 145 -Pastdue0-30days 186 - 204 -Pastdue31-120days - - - -Pastdue120-365days - - - -Morethanoneyear - - - -
The ageing of cash and cash equivalents: 2009/10 2008/09Gross R’000
Impairment R’000
Gross R’000
Impairment R’000
Notpastdue 125792 - 150535 -Pastdue0-30days - - - -Pastdue31-120days - - - -Pastdue120-365days - - - -Morethanoneyear - - - -
Liquidity riskTheSETAmanagesliquidityriskthroughpropermanagementofworkingcapital,capitalexpenditureandactualvs.forecastedcashflowsanditscashmanagementpolicy.Adequatereservesandliquidresourcesarealsomaintained.
2009/10 Carrying Amount
Contractual Cash Flows
6 months or less
6 - 12 months
1 - 2 years
More than 2 years
R’000 R’000 R’000 R’000 R’000 R’000Tradeandotherpayables (12250) (12250) (12250) - - -
2008/09 Carrying Amount
Contractual Cash Flows
6 months or less
6 - 12 months
1 - 2 years
More than 2 years
R’000 R’000 R’000 R’000 R’000 R’000Tradeandotherpayables (11576) (11576) (11576) - - -
In caseof liquidityproblems, funding resourcesmightbeavailable in termsof theDepartmentandNationalTreasuryapprovalforborrowingrequirementsintheopenmarket.
Market riskTheSETAisexposedtofluctuationsintheemploymentmarketforexamplesuddenincreasesinunemploymentandchangesinthewagerates.NosignificanteventsoccurredduringtheyearthattheSETAisawareof.
Fair valuesTheSETA’sfinancialinstrumentsconsistmainlyofcashandcashequivalents,accountandotherreceivables,andaccountandotherpayables.Nofinancialinstrumentswerecarriedatanamountinexcessofitsfairvalue.Thefollowingmethodsandassumptionsareusedtodeterminethefairvalueofeachclassoffinancialinstrument:
Cash and cash equivalentsCashandcashequivalents comprise cashheldby theSETAand short-termbankdepositswith anoriginalmaturityofthreemonthsorless.Thecarryingamountoftheseassetsapproximatestheirfairvalue.
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ents
19 FINANCIALINSTRUMENTS(Continued)
Accounts receivableThecarryingamountofaccountsreceivableisnetofallowanceforanydoubtfuldebt,estimatedbytheaccountingauthoritybasedonpriorexperience.Thecarryingamountoftheseassetsapproximatestheirfairvalue.
Accounts payableThecarryingamountof account andotherpayablesapproximates fair valuedue to the relatively short-termmaturityofthesefinancialliabilities.
20 NEWACCOUNTINGPRONOUNCEMENTS
Atthedateofauthorisationofthesefinancialstatements,thereareStandardsandInterpretationsinissuebutnotyeteffective.TheseincludethefollowingStandardsandInterpretationsthatareapplicabletotheSETAandmayhaveanimpactonfuturefinancialstatements:
Effective date, commencing on or after
GRAP21 ImpairmentofNon-cash-generatingAssets notyeteffectiveGRAP23 RevenuefromNon-exchangeTransactions(TaxesandTransfers) notyeteffectiveGRAP24 PresentationofBudgetInformationinFinancialStatements notyeteffectiveGRAP25 EmployeeBenefits notyeteffectiveGRAP26 ImpairmentofCash-generatingAssets notyeteffectiveGRAP104 FinancialInstruments notyeteffective
AnentityshallapplyStandardsofGRAPforannualfinancialstatementscoveringperiodsbeginningonorafteradatetobedeterminedbytheMinisterofFinanceinaregulationtobepublishedinaccordancewithsection91(1)(b)ofthePFMA.
GRAP21,23,24and26havebeenusedtoformulateaccountingpoliciesorinormpresentationanddisclosure.
TheSETAhasnotyetassessedtheimpactofadoptingGRAP25and104.
21 IMPLEMENTATIONOFGRAPSTANDARDS
During the year theBANKSETAchanged its policy for themeasurement of assets acquired through a non-exchangetransaction,i.e.fornoconsideration.Previouslysuchassetsweremeasuredatzerocost.Currentlytheasset’scostisitsfairvalueasatthedateoftheacquisition.ThechangewasmadeastocomplywithGRAP17.22andhasbeenappliedretrospectively.
Thecomparativeamountshavebeenappropriatelyrestated.Theeffectofthischangeinaccountingpolicyisasfollows:
2008/09 R’000
IncreaseinopeningcostpriceofPPE 42IncreaseinopeningaccumulateddepreciationPPE (34)Decreaseinopeningaccumulatedsurplus 8
Increaseindepreciation 4Decreaseinsurplus 4
74 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
22 CRITICALACCOUNTINGJUDGEMENTSANDKEYSOURCESOFESTIMATIONUNCERTAINTY
In theapplicationof theSETA’saccountingpoliciesmanagement is required tomake judgements,estimatesandassumptionsaboutthecarryingamountsofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.
Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.
TheSETAhas reviewed the residualvaluesused for thepurposesofdepreciationcalculations in lightof theamendeddefinition of residual value. The reviewdid not highlight any requirement for an adjustment to theresidualvaluesusedinthecurrentorpriorperiods.Residualvaluesarereviewedannually.
23 RELATEDPARTYTRANSACTIONS
Transactions with entities under common controlTheSETAwascontrolledby theDepartmentofLabour, for theperiodupuntil 31October2009,andsince1November2009bytheDepartment.Thedepartmentswerecontrolled,respectivelybytheMinisterofLabourandMinisterofHigherEducationandTraining.
ByvirtueofthefactthatBANKSETAisaNationalPublicEntityrelatedtootherentitiesanddepartmentsintheNationalsphereofgovernmentitisconsideredrelatedtoTelkom,Eskom,SouthAfricanAirways,otherSETAsandtheNationalSkillsFund.Thetransactionsareconsistentwithnormaloperatingrelationshipsbetweentheentitiesandareundertakenontermsandconditionsthatarenormalforsuchtransactions.WherethereweretransactionsandbalancesarisingduetothemovementoffundsbetweenentitiesunderthecommoncontroloftheDepartment,theseamountsweredisclosedbelow:
IntersetatransactionsandbalancesariseduetothemovementofemployersfromoneSETAtoanother.
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23 RELATEDPARTYTRANSACTIONS(Continued)
Thebalancesatyear-endincludedinreceivablesandpayablesare:
2009/10 2008/09R’000 R’000
NoteAmount of the
transaction
Amount receivable/
payableAmount of the
transaction
Amount receivable/
payableReceivables 9 883 404 256 106 FASSET 64 - 78 36SERVICES 726 360 178 70ISETT 44 44 - -CETA 49 - - -
Payables 12 112 4 51 6 FASSET 39 1 30 1 INSETA 18 3 - -AGRISETA 55 - - -W&RSETA - - 17 1 FOODBEV - - 4 4
Total 771 400 205 100
*NotethatrelatingtoSETAtransferthattheamountofthetransaction,whereapplicable,includesinterestandpenaltiestransferredtoorfromtheSETA.
Remuneration of key managementThe keymanagement personnel (as defined by IPSAS20,RelatedPartyDisclosures) of BANKSETA is: themembersoftheaccountingauthorityandthemembersoftheseniormanagementgroup.
Theaccountingauthorityconsistsofmembersappointedintermsofitsconstitution.Thechiefexecutiveofficerattendsmeetingsoftheaccountingauthoritybutisnotamemberoftheaccountingauthority.Theaggregateremunerationofmembersoftheaccountingauthorityandthenumberofmembersreceivingremunerationwithinthiscategoryare:
2009/10 2008/09R’000 R’000
Aggregateremuneration 59 59
Numberofpersons 13 12
76 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
23 RELATEDPARTYTRANSACTIONS(Continued)
Theseniormanagementgroupconsistsof theSETA’schiefexecutiveofficer.Theaggregate remunerationofmembers of the seniormanagement group and the number ofmanagers receiving remunerationwithin thiscategoryare:
2009/10 2008/9R’000 R’000
Aggregateremuneration 1876 1329
Numberofpersons 1 1
RefertothereportbytheAccountingAuthorityfordetaildisclosureconcerningtheemolumentsofmembersoftheaccountingauthorityandtheChiefExecutiveOfficer.
24 TRANSACTIONSWITHSTAKEHOLDERSREPRESENTEDONTHEACCOUNTINGAUTHORITY
BANKSETAhas,inthenormalcourseofitsoperations,enteredintocertaintransactionswithentitieswhichhadanominatedrepresentativeservingonBANKSETA’saccountingauthority.
2009/10 2008/09R’000 R’000
Related party
Nature of relationship
Transaction type
Amount of the
transaction
Amount receivable/ (payable)
Amount of the
transaction
Amount receivable/ (payable)
ReceivablesABSALetsema RRamabulana
(Authoritymember)LETSEMAProject 8816 - 23582 -
NedbankLetsema SZinn(Authoritymember)
LETSEMAProject 849 - 302 302
PayablesAfricanBank NNaicker
(Authoritymember)DiscretionaryGrant 2 112 - - -
SARB JJeftha(Authoritymember)
DiscretionaryGrant 783 - - -
ABSALetsema RRamabulana(Authoritymember)
LetsemaProject 8816 - 1300 -
FirstRandBank FHugo/GFipaza(Authoritymembers)
DiscretionaryGrant 9392 - 1 221 (1225)
MicroFinanceSouthAfrica
HFerreira(Authoritymember)
DiscretionaryGrant 224 - - -
ABSA RRamabulana(Authoritymember)
DiscretionaryGrant 3752 - - -
Nedbank SZinn(Authoritymember)
DiscretionaryGrant 6113 - 996 -
StandardBank SNgidi(Authoritymember)
DiscretionaryGrant 5908 - 442 -
Theabovetransactionsoccurredundertermsthatwerenolessfavourablethanthoseavailableinsimilararm’slengthdealings.
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25 INTERSETASUMMIT
InterSETAandrelatedpartytransactionsandbalancesaroseduetotheinterSETAsummitheldduringtheyearandadministeredbyBANKSETAonbehalf20SETAs.TheInterSETAsummitwasheldtodiscussthenewSETAlandscapebeyond31March2010.
Receivedduring the year
R'000
Percentage Contribution Payable
R'000BANKSETA 200 8.53% 20 FoodBevSETA 40 1.71% 4Deloitte 200 8.53% 20 FIETA 100 4.27% 10 MQA 200 8.53% 20 W&RSETA 200 8.53% 20 ESeta 50 2.13% 5ETDPSETA 100 4.27% 10 MerSETA 200 8.53% 20 CHIETA 140 5.97% 14H&WSETA 40 1.71% 4TETA 124 5.29% 12 CTFLSETA 144 6.14% 14CETA 40 1.71% 4FASSET 40 1.71% 4AGRISETA 22 0.94% 2 THETA 100 4.27% 10 LGSETA 24 1.02% 2 SASSETA 100 4.27% 10 MAPPSETA 40 1.71% 4ServicesSETA 240 10.24% 24Publicdelegates 243
2 587 100.00% 236
26 NOTESTOCOMPARISONOFBUDGETANDACTUAL
Legislation requires that theSETAannually, inSeptember submit abudget to theMinister for approval.AnysubsequentchangesrequiredtotheinitialbudgetareapprovedbytheManagementBoardonrecommendationoftheFinanceCommittee.
26.1 Skills Development Levy: Income from non-exchange transactions:Thelevyreceiptforthecurrentyearwas7%morethanthebudgetfortheyear.Thebudget informationwascalculatedusingaconservativeapproachduetotheworldwideeconomiccrises.
26.2 Skills Development Levy: penalties and interest from non-exchange transactions:Incomefrompenaltiesandinterestarisewhenemployersfailtosubmittheirreturnsasrequiredbylegislation.Theseamountstypicallyvarysignificantlyyearonyear.Thefullbalanceismadeavailableforprojects.
26.3 Investment IncomeInvestmentincomewasslightlymorethanwhatwasbudgetedfor.
78 | NOTES TO THE ANNUAL FINANCIAL STATEMENTS (cont inued)
26.4 Employer grant and project expenditureTheapprovedfinalbudgetonlyincludestheestimatedmandatorygrantspendingofthecurrentfinancialyear.Theoverexpenditurerelatedtoincreasedprojectexpenditure,utilisingprioryearreserves.ThisoverexpenditureisacceptablepracticewithintheSETAenvironmentgiventhemultiyearnatureofmanyprojects.
26.5 Administration expenditureAdministrationexpenditureislimitedto10%ofleviesreceived.Thelegislationlimithasnotbeenexceededandthesavingswillbeutilisedtofundsectorskillspriorities,throughvariousprojects.
Annexures
page 79 - 97
AnnexureA:CouncilMembersandCommitteeAttendance 80
AnnexureB:HumanResources 82
AnnexureC:RegisteredandDe-RegisteredLearnerships 84
AnnexureD:BANKSETANSDS2009/10Achievements 86
AnnexureE:DiscretionarySectorProjects 91
Acronyms 97
80 | ANNEXURES
AnnexuresAnnexureA
COUNCIL MEMBERS’ ATTENDANCE (1 April 2009 – 31 March 2010)
Council Member
ConstituencyNumber of meetings attended
20 May2009
21 July 2009
16 Sept2009
25 Nov2009
27 Jan2010
17 Mar2010
SiphoNgidi
SBSA6
√Chairperson
√ √ √√
Member√
EugeneEbersohn
SASBO5
√Deputy
Chairperson√ √
√Became
ChairpersonApologies √
IsaacRamputa
SASBO6 √ √ √ √ √ √
HennieFerreira
MFSA4 √ Apologies √ √ Apologies √
JoeKokela
SASBO2 Apologies Apologies Apologies Apologies √ √
RonaldRamabulana
ABSA
5 √ √ √
ApologiesBecameDeputy
Chairperson
√ √
JennyJeftha
SARB4 √ Apologies Apologies √ √ √
EugeneZeeman
IBSA4 √ Apologies √ Apologies √ √
ShirleyZinn
Nedbank3 √ Apologies Apologies Apologies √ √
FrancoisHugo
FirstRand1 √ Resigned
SifisoMthembu
FirstRand2 Notyetappointed
√Joined
√ Resigned
GcobaniFipaza
FirstRand1 Notyetappointed
√Joined
Apologies
VanessaHattingh
SASBO4 √ √ Apologies √ √ Apologies
BenVenter
SASBO5 √ √ √ √ √ Apologies
NitashaNaicker
AfricanBank2 Notyetappointed
√Joined
√ Apologies
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COMMITTEE MEMBERS’ ATTENDANCE (1 April 2009 – 31 March 2010)
Committee Member
ConstituencyNumber of
meetings attended13 May
200915 July 2009
4 Nov 2009
3 Mar 2010
AuditCommittee
HennieFerreira
MFSA2
√Chairperson
Apologies√
Resigned
NitashaNaicker
AfricanBank2 Notyetappointed √
√Chairperson
LeelaRamdhani
Nedbank2 √
√ActingChairperson
Resigned
MarlevdWalt
ABSA3 √ √ Apologies √
COMMITTEE MEMBERS’ ATTENDANCE (1 April 2009 – 31 March 2010)
Committee Member
ConstituencyNumber of meetings attended
13 May 2009
15 July 2009
2 Sept 2009
4 Nov 2009
20 Jan 2010
3 Mar 2010
FinanceCommittee
EugeneEbersohn
SASBO1
√Chairperson
Resigned
VanessaHattingh
SASBO5
√Chairperson
√ √ √ √
BuksLottering
SARB2 √ Apologies Apologies √ Resigned
PaulMogotsi
Nedbank5 √ √ √ Apologies √ √
SamanthaAnthony
SASBO4 Apologies √ √ √ √ Apologies
COMMITTEE MEMBERS’ ATTENDANCE (1 April 2009 – 31 March 2010)
Committee Member
ConstituencyNumber of
meetings attended04 Nov 2009 03 Mar 2010 12 Mar 2010
Remuneration Committee
BenVenter
SASBO 3 √ √ √
EugeneZeeman
IBSA 3 √ √ √
RonaldRamabulana
ABSA 0 Apologies Apologies Apologies
GcobaniFipaza
FirstRand 1 Notyetappointed Apologies √
SifisoMthembu
FirstRand 1 √ Resigned
82 | ANNEXURES
AnnexureB:HumanResourcesin2009/10
StaffProfileandEmploymentEquityasat31March2010
Staff member PositionFemale Male
Appointments ExitsA C I W A C I W
MaxMakhubalo CEO √ 01Apr2007
PreciousSikhosana PAtoCEO √ 01Oct2008
ChristineFritz CorporateServicesManager
√ 01Aug2001
CarolineKing ProvincialLiaisonSpecialist
√ 02Feb2004
MaryBaloyi CorporateServicesSpecialistFinance
√ 05May2008
DineoMabena CorporateServicesAdministrator
√ 01Oct2005 09Oct2009
RosemaryMagamba CorporateServicesAdministrator
√ 15Mar2010
PaulinaShai Receptionist √ 01Mar2010
KarenHobbs ETQAManager √ 01Sep2008
JoletteLeRoux ETQASpecialist √ 15Dec2008
CharmaineJanisch ETQASpecialist √ 05Jan2009
KgomotsoKhoale ETQAAdministrator √ 17Aug2009
PauletteBourne LearningProgrammesManager
√ 01Jan2006
DeeraniNaidoo LearningProgrammesSpecialist
√ 09Feb2007
NobuzweMangcu LearningProgrammesSpecialist
√ 01Mar2009
EvaTabaneRatema LearningProgrammesAdministrator
√ 22Feb2005 05Feb2010
NyekoMayimela LearningProgrammesAdministrator
√ 01Mar2010
TrevorRammitlwa SkillsDevelopmentManager
√ 01Aug2000
SipheloNgcwangu HeadofResearch √ 05May2008
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Staff member PositionFemale Male
Appointments ExitsA C I W A C I W
AyandaMaki SkillsDevelopmentSpecialist
√ 03Dec2007
SharissaNaicker SkillsDevelopmentSpecialist
√ 22Jan2007
SharonMokgwatlheng SMESpecialist √ 01Feb2007
MabellyneLenyai SkillsDevelopmentAdministrator
√ 01May2009
LynetteMentor DevelopmentProgrammesManager
√ 02Dec2005
AumaNnane DevelopmentProgrammeSpecialist
√ 15Aug2005
MadeleinePelzer DevelopmentProgrammeSpecialist
√ 2Feb2009
MirriamChauke DevelopmentProgrammeAdministrator
√ 01Aug2004
DimakatsoSeete HumanResourcesManager
√ 01Oct2008
SilindileBulunga HumanResourcesAdministrator
√ 15Jun2009
ThelmaBaloyi Housekeeper √ 01Apr2009
PortiaKekana Housekeeper √ 01Apr2009
KaaminiReddy Marketing&CommunicationsManager
√ 01Nov2006
BusisiweLubisi Marketing&CommunicationsSpecialist
√ 07Feb2005 26Feb2010
ThamsanqaMalinga Marketing&CommunicationsSpecialist
√ 01Sep2008 28May2009
IsabeldeNecker Marketing&CommunicationsSpecialist
√ 01Sep2009
84 | ANNEXURES
AnnexureC:RegisteredandDe-registeredLearnerships
REGISTERED LEARNERSHIPS AS AT 10 JUNE 2009
Registration number NQF level Title
1 02Q020021241263 3 AssetBasedFinanceAdministrationLearnershipLevel3
2 02Q020008291204 4 AssetBasedFinanceLearnershipLevel4
3 02Q020026171565 5 AssetProtectioninBankingLearnershipLevel5
4 02Q020042003606 6 BachelorinManagementLeadershipLearnershipLevel6
5 02Q020025181545 5 BankingManagementLearnershipLevel5
6 02Q020018001205 5 BusinessAnalysisLearnershipLevel5
7 02Q020014001205 5 CertificateinManagementLeadershipLearnershipLevel5
8 02Q020017151354 4 CentralBankingSecurityLearnershipLevel4
9 02Q020037181585 5 CertificateinBanking:RiskManagementLearnershipLevel5
10 02Q020038001205 5 ChangeManagementLearnershipLevel5
11 02Q020027291685 5 CorporateAssetBasedFinanceLearnershipLevel5
12 02Q020010002405 5 CreditLearnershipLevel5
13 02Q020029201315 5 CustomerServiceRepresentativeLearnershipLevel5
14 02Q020040002405 5 DiplomainBusinessAnalysisLearnershipLevel5
15 02Q020031002405 5 DiplomainManagementandLeadershipLearnershipLevel5
16 02Q020041002405 5 DiplomainOperationsandProductivityManagementLearnership
17 02Q020033001205 5 FleetManagementLearnershipLevel5
18 02Q020019001205 5 HRBenefitsinBankingConsultingLearnershipLevel5
19 02Q020032002405 5 HumanResourceinBankingLearnershipLevel5
20 02Q020004001805 5 InformationTechnologyinBusinessLevel5
21 02Q020011001206 6 InternalAuditTechnicianLearnershipLevel6
22 02Q020022231204 4 IntroductiontoMicrofinanceSupervisionandManagementLearnershipLevel4
23 02Q020035391285 5 InvestmentAdministrationLearnershipLevel5
24 02Q020023001205 5 LegalRecoveriesServicesLevel5
25 02Q020016001206 6 ManagementDevelopmentLearnershipLevel6
26 02Q020012301203 3 MicroLendingFrontLineServiceLearnershipLevel3
27 02Q020015001205 5 NationalCertificateinBankingServicesAdviceLevel5
28 02Q020043271234 4 NationalCertificate:ServiceExecellenceatPersonalandBusinessBankingLevel4
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REGISTERED LEARNERSHIPS AS AT 10 JUNE 2009
Registration number NQF level Title
29 02Q020034001205 5 OperationsandProductivityManagementLearnershipLevel5
30 02Q020039001205 5 ProjectManagementLearnershipLevel5
31 02Q020028231395 5 RelationshipManagerLearnershipLevel5
32 02Q020013241554 4 RetailForeignExchangeBankingLearnershipLevel4
33 02Q020024001205 5 RiskManagementLearnershipLevel5
34 02Q020036182015 5 SalesandRelationshipManagementLevel5
35 02Q020030001205 5 SmallBusinessServicesLearnershipLevel5
36 02Q020007001205 4 TreasuryLearnershipProgrammeLevel5
37 02Q020052231404 4 NationalCertificate:Banking:CreditAnalysis,Level4
38 02Q020055241404 4 NationalCertificate:Banking:CreditandRiskAnalysis,Level4
39 02Q020048411203 3 NationalCertificate:Banking:FinancialServices:Insurance(FAISFitandProper)Level3
40 02Q020051271205 5 NationalCertificate:Banking:TreasuryandGlobalMarkets,Level5
41 02Q020044001205 5 Certificate:BankCreditLevel5
42 02Q020054251203 3 NationalCertificate:MicrofinanceLevel3
43 02Q020046081216 6 NationalCertificate:FinancialMarketsandInstrumentsLevel6
44 02Q020050001205 5 CertificateManagementDevelopmentLearnershipLevel5
45 02Q020053321204 4 EssentialSkillsforBankingLevel4
46 02Q020047001205 5 CertificateinFinancialPlanningLevel5
47 02Q020045002405 5 Diploma:AdvancedBusinessManagementLevel5
DE - REGISTERED LEARNERSHIPS
Registration number NQF level Title
1 02Q020020181474 4 AssetProtectioninBankingLevel4
2 02Q020005141814 4 RetailBanking-CreditLevel4
3 02Q020002481203 3 EntryLevelBankingLearnershipLevel3
4 02Q020009001205 5 FinancialServicesCo-operativesBankingLearnershipLevel5
86 | ANNEXURES
AnnexureD:B
ANKSETA
NSDS200
9/10
achievements
Suc
cess
Ind
icat
or
No
.
Rep
ort
ing
in
form
atio
n re
qui
red
SE
TA S
LA
targ
et f
or
2009
/10
Ach
ieve
men
ts
for
the
year
(Cum
ulat
ivel
y)A
chie
vem
ents
%E
xpla
nati
on
for
vari
ance
1.2
Num
berofSDForSector
Specialistswhocarryoutskills
developm
entfacilitationinthe
sectortrainedintheuseofthe
guidefortheyear
200
271
135.50
ThepartnershipwithKZN
DoE
allowedBANKSETA
toreach
moredelegatesthananticipated
2.1
Num
beroflargefirmsthat
receivedW
SP/ATR
grantsfor
the20
09/10financialyear
101
8584
.16
Manyofthesubsidiarycom
panies,w
hichwerecountedasper
theSLA
withtheDepartm
entarenolongerpayingleviesand
thereforecannotreceivelevies.
Num
berofmedium-sizedfirm
sthatreceivedW
SP/ATR
grants
for20
09/10financialyear
2623
88.46
Som
esubsidiariesofthesecompaniesnolongerpaylevies;also
therewerequeriesoutstandinginsom
eoftheWSPrepo
rtsat
thetim
eofthisrepo
rt
2.2
Num
berofsmalllevypaying
firmssupp
ortedbySETA
sfor
2009/10financialyear
192
244
127.08
OverandabovetheWSPrepo
rtingsupp
ortB
ANKSETA
offered
SMEsothersupp
ortthroughworkshops/roadshows
2.5
Num
berofsmallB
EE
firmssupp
ortedbyskills
developm
ent
1013
130.00
Num
berofsmallB
EE
coop
erativessuppo
rtedby
skillsdevelop
ment
56
120.
00
2.7
Num
berofworkersthathave
registeredABETLevel1
1019
190.
00Dueto
increasedmarketingoftheABETprogrammemore
learnersparticipatedintheproject
Num
berofworkersthathave
registeredABETLevel2
1045
450.00
Dueto
increasedmarketingoftheABETprogrammemore
learnersparticipatedintheproject
Num
berofworkersthathave
registeredABETLevel3
1096
960.
00Dueto
increasedmarketingoftheABETprogrammemore
learnersparticipatedintheproject
Num
berofworkersthathave
registeredABETLevel4
2083
415.00
Dueto
increasedmarketingoftheABETprogrammemore
learnersparticipatedintheproject
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cronym
s
Suc
cess
Ind
icat
or
No
.
Rep
ort
ing
in
form
atio
n re
qui
red
SE
TA S
LA
targ
et f
or
2009
/10
Ach
ieve
men
ts
for
the
year
(Cum
ulat
ivel
y)A
chie
vem
ents
%E
xpla
nati
on
for
vari
ance
Num
berofworkersthathave
achievedABETLevel1
738
542.86
Dueto
increasedenrolmentsandlowdropoutratemore
learnerscom
pletedthisABETlevel
Num
berofworkersthathave
achievedABETLevel2
793
1328
.57
Dueto
increasedenrolmentsandlowdropoutratemore
learnerscom
pletedthisABETlevel
Num
berofworkersthathave
achievedABETLevel3
714
120
14.29
Dueto
increasedenrolmentsandlowdropoutratemore
learnerscom
pletedthisABETlevel
Num
berofworkersthathave
achievedABETLevel4
1494
671.43
Dueto
increasedenrolmentsandlowdropoutratemore
learnerscom
pletedthisABETlevel
2.8
Totalnum
berofworkers
thathaveenteredlearning
programmes
1000
3067
306.70
Workersenteredlearnerships
200
599
299.50
TheBANKSETA
spo
nsoredemployedlearnershipsfor
implem
entationbyregisteredparticipatingem
ployersinthe
bankingsector.Theinitialfundingthatwasring-fencedor
allocatedtothisprojectwasR4000000.00eachatacost
ofR15
000
perlearner.Afterbroaderconsultationwiththe
sector,theBANKSETA
implem
entedarevisedgrantallocated
pricingscheduleto
incentivisethesectorto
implem
entm
ore
learnerships,giventheimpactoftherecession(wheretraining
budg
etsarethefirstto
becut).18.1learnershipsspo
nsoredby
theBANKSETA
amountedto
410employedlearnerssuppo
rted
onalearnership.
Workersreceivedbursaries
00
0.00
Workersenteredunitstandard-
basedskillsprogram
mes
800
2468
308.50
Dueto
thecompliance‘Fit&Proper’requirementsagainstthe
FAISAct,thebanksandtrainingproviderssubmittedalllearners
whohadpreviouslyenteredcreditbearingskillsprogram
mes
Totalnum
berofworkerswho
havecom
pletedlearning
programmes
500
3752
750.40
Workerssuccessfully
completedlearnerships
100
316
316.00
Theincreasedrateoflearnerscompletingisbasedon
learnershipgrantfundingfrom
thepreviousfinancialyear.ETQ
A
qualityassuranceandverificationsupp
ort,ensuredthatlearners
receivedtheircertificates
88 | ANNEXURES
Suc
cess
Ind
icat
or
No
.
Rep
ort
ing
in
form
atio
n re
qui
red
SE
TA S
LA
targ
et f
or
2009
/10
Ach
ieve
men
ts
for
the
year
(Cum
ulat
ivel
y)A
chie
vem
ents
%E
xpla
nati
on
for
vari
ance
Workerssuccessfully
completedunitstandard-
basedskillsprogram
mes
400
3327
831.75
Dueto
thecompliance‘Fit&Proper’requirementsagainstthe
FAISAct,theBanksandtrainingproviderssubmittedalllearners
whohadpreviouslycompletedcreditb
earingskillsprogram
mes
3.2
Totalnum
berofNLP
Es,NGOs,
CBOsandCBCssupp
ortedby
skillsdevelop
ment
125
208
166.40
Targetnum
berofNLP
Esin
thesectorto
receiveskills
developm
entsuppo
rt
125
208
166.40
BANKSETA’sdrivetoattractNLP
Ecom
paniesto
participate
inskillsdevelop
mentw
assuccessfulandthetargetedwas
exceeded
4.1
Totalnum
berofunemployed
peop
lewhohaveentered
learningprogram
mes
1140
1542
135.26
Unemployedpeopleentered
learnerships
1100
1540
140.00
TheBANKSETA
spo
nsored1000learnersonapo
st-m
atric
learnership(calledLE
TSEMA)and200learnersonapo
st-
graduatelearnership(calledKUYA
SA);hostemployerswere
onlyrequiredtohostthelearners.Inconjunctionwiththese
interventions,theBANKSETA
alsomadegrant-fundingwindo
ws
availabletoemployers,to
suppo
rtunemployedlearners
onlearnerships.Theinitialfundingthatwasring-fencedor
allocatedtothisprojectwasR4000000.00eachatacost
ofR15
000
perlearner.Afterbroaderconsultationwiththe
sector,theBANKSETA
implem
entedarevisedgrantallocated
pricingscheduleto
incentivisethesectorto
implem
entm
ore
learnerships,giventheimpactoftherecession(wheretraining
budg
etsarethefirstto
becut).18.2learnershipsspo
nsored
bytheBANKSETA
amountedto
275unemployedlearners
supp
ortedonalearnership.
Unemployedpeoplereceived
bursaries
00
0.00
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s
Suc
cess
Ind
icat
or
No
.
Rep
ort
ing
in
form
atio
n re
qui
red
SE
TA S
LA
targ
et f
or
2009
/10
Ach
ieve
men
ts
for
the
year
(Cum
ulat
ivel
y)A
chie
vem
ents
%E
xpla
nati
on
for
vari
ance
Unemployedpeopleentered
internships
200
0.00
Theuptakeforinternshipswasextremelylow-eventhough
BANKSETA
openedaspecificfundingwindo
winsuppo
rtof
internships.Thestrictd
efinitionofinternships,whereworkplace
experienceisessentialbeforeadegreeordiplom
aisconferred,
doesnotapp
lyinthebroaderbankingandfinancialservices
sector;thesectorisnotgovernedbyaprofessionalbod
ythat
willhaveoversightintointernshipsdesignedforentrylevel
banking.Theconverseistrueforsuchprofessionalsectorsas
engineering,accountantsandactuarieswhereinternshipsare
criticaltothetransferofskillsneededpriortohavingadegree/
diplom
aconferred.
Unemployedpeopleentered
unitstandard-basedskills
programmes
202
10.0
0
Totalnum
berofunemployed
peop
lewhohavecompleted
learningprogram
mes
570
1006
176.49
Unemployedpeople
successfullycom
pleted
learnerships
550
891
162.
00Thisincreasedrateoflearnerscompleting,isbasedon
learnershipgrantfundingfrom
thepreviousfinancialyear.ETQ
A
qualityassuranceandverificationsupp
ortensuredthatlearners
receivedtheircertificates.
Unemployedpeople
successfullycom
pleted
bursarystudies
00
0.00
Unemployedpeople
successfullycom
pleted
internships
100
0.00
Theuptakeforinternshipswasextremelylow-eventhough
BANKSETA
openedspecificfundingwindo
winsuppo
rtof
internshipsinpriorfinancialperiods.
Unemployedpeople
successfullycom
pleted
unitstandard-basedskills
programmes
1015
150.00
90 | ANNEXURES
Suc
cess
Ind
icat
or
No
.
Rep
ort
ing
in
form
atio
n re
qui
red
SE
TA S
LA
targ
et f
or
2009
/10
Ach
ieve
men
ts
for
the
year
(Cum
ulat
ivel
y)A
chie
vem
ents
%E
xpla
nati
on
for
vari
ance
4.2
Num
beroflearnersassistedto
gainworkexperience
100
115
115.00
ThisisthefirsttimethattheBANKSETA
hasim
plem
enteda
Work-basedexperiencegrant.Awarenesswithinthesectorstill
needstobebuiltinorderto
increasetheparticipationrates.
Num
berofstudents/
graduateswhofindplacement
inemploymento
rself-
employment
7013
619
4.29
Thelearnerssuppo
rtedbyBANKSETA
intheCIDABursaries
Program
me(190learners)aswellastheThusananiintakeII
(100
)learners,yieldedtheseresults.Thedisappo
intingresults
fromlearnerswhodidnotperform
wellintheCIDAbursary
prog
ramme(thereisalistoflearnerswhoneedtorepeat
subjects),isthereasonthatthepercentageofcom
pletions
couldhavebeenmuchhigher.
4.3
Num
berofyoungpersons
trainedandmentoredtoform
newventures
2037
185.00
Economiesofscaleensuredthatwewereableto
achievemore
NVClearnersthanexpectedforthefundingam
ount--addedto
thisfactfewerstartersdrop
pedoutthanexpected.
Num
berofnew
venturesthat
areinoperation12months
aftercompletionofprogram
me
1420
142.86
Coachingandmentoringthroughoutthe12monthsensured
thatmoreofthenewbusinessesthananticipatedwere
maintained
5.1
Num
berofInstitutesof
SectoralorOccupational
Excellencerecognisedand
supp
ortedbySETA
25
250.00
5.2
Num
berofInstitutions
accreditedtomanagedelivery
ofnew
venturecreation
qualification
12
200.
00Economiesofscaleensuredthatwewereableto
doubleupon
thetrainingfortheFE
Ts
BANKSETAAnnualReport2009/10| 91
Grow
ingForward|8 A
nnexures and A
cronym
s
AnnexureE:D
iscretionarySectorProjectsof200
9/10
Pro
ject
N
umb
erP
roje
ct
Nam
eO
bje
ctiv
eR
FP
Num
ber
Pro
ject
B
udg
etR
'000
Sta
tus
420.4710.207000
Junior&MiddleMgt
DevProgram
me
Tofundtheresearch,design,develop
mentandim
plem
entationofajunior
&middlemanagem
entd
evelop
mentp
rogram
me.
B-0001481\01\07
231620
Com
pleted
420.4710.238000
Introd
uctoryCourse
inIslamicBanking
Toresearchanddevelop
anintrod
uctoryCourseinIslamicbankinginorder
toorientateandinform
bothMuslim
andnon-M
uslim
staffinthebanks
sothattheycanprovidebasicinform
ationaboutIslamicbankingtotheir
clients.TheMuslim
Com
munityisin
creasinglysignificanteconom
ically
andthereareapproximatelyR4billioninfundsheldbyMuslim
clients.The
bankingsectorwishestocontinueto
develop
thissectorofthemarket.
B-0001244\01\08
1000
InProgress
420.4710.241000
FinancialEducation:
Translations&
Reproducing
Tofundthetranslationoffinancialliteracymaterials
B-0001831\01\08
250
Com
pleted
420.4710.245000
SMEBuildinga
BetterBusiness
2008/9and
2009
/10
Theoverallob
jectiveistoattractand
retainS
MEp
articipation.This
approachintegratedwithmandatoryskillsplanningandrepo
rtingwillfurther
increasethelevelofskillsandknowledg
ewithintheSMEenvironm
entof
thebankingsector.
B-0001900\01\09
1 90
0InProgress
420.4710.246000
QCTO
PilotP
roject
Thisprojectsuppo
rtsthesector’stransitionfromaSAQA-basedtoa
QCTO
-basedsystem.TheQCTO
systemissettobeim
plem
entedfrom
April20
09andw
illbefullyoperationalA
pril20
10.Thisprojectw
illfund
threecurriculaandqualificationforretailbanking,abaseforacentralised
assessmentp
latform
andablueprintforim
plem
entationinotherareas.
B-0001918\01\09
7450
InProgress
420.4710.248000
Thusanani
programme2008/9
ThefirstThusananiProjectstartedinNovem
ber200
7withanintakeof100
learners,whograduatedinJuly20
08.Thespecificaimsandob
jectives
ofthisprojectincludedrecruitm
entandselectionoflearnerstostarta
12weekworkreadinessprog
ramme.Theoutcomesofthisprogram
me
includedsoftskillstrainingpresentedbytheUniversityofJohannesburg
andworkexperienceandmentoringthroughouttheprogram
meoffered
byDeloitteConsulting.Theprog
rammeculminatedwithajobfairaimed
atintrod
ucingthelearnerstopotentialemployers.TheThusananiIIproject
involvedtherecruitm
entofasecondgroupof100
unemployedlearners
inAugust20
08,withthelearnersgraduatinginApril20
09.Thecostper
beneficiaryforthisinterventionwasR43
999
.95.
B-0001989\01\09
3900
InProgress
92 | ANNEXURES
Pro
ject
N
umb
erP
roje
ct
Nam
eO
bje
ctiv
eR
FP
Num
ber
Pro
ject
B
udg
etR
'000
Sta
tus
420.4710.249000
Mob
ileTraining
Solutions
TheaimofthisprojectistoprovideaninnovativesolutiontoreachSMEsin
ruralandoutlyingareasinSouthAfricabyofferingamechanism
todeliver
existingskillsprogram
mes,traininganddevelopm
enttoSMEemployees
inthebroaderbanking&mircofinancesector.
B-0001919\01\09
1 10
0InProgress
420.4710.251000
SMETraining
VoucherProject
2008/09and
2009
/10
Theoverallob
jectiveisto
retainandattractS
MEp
articipation;and
thisapp
roachintegratesw
ithm
andatorySkillsPlanningandrepo
rting
processestherbyfurtherincreasingthelevelofskillsandknowledg
ewithin
theSMEenvironm
entofthebankingsector.NSDStargetsadd
ressed
throughthisprojectinclude2.2,2.5,3.2and2.8.
B-0001924\01\09
5500
InProgress
420.4710.252000
CareerAwareness
2008/09and
2009
/10
Theaimofthisprojectistofundthedisseminationofacareerguideon
thevariouscareers(linkedtocriticalandscarceskills)intheBanking/
Microfinanceindustry.Thiseffortwillprom
otethebroaderindustryasan
employerofchoice.
B-0002043\01\09
2500
InProgress
420.4710.253000
ScarceSkills
Research
Theaimofthisprojectistofollow-uponcritical,scarceandfutureskills
researchalreadyconductedintheBankingandMicrofinanceSector.
B-0002044\01\09
1300
InProgress
420.4710.254000
Masters&Exec
ShortCourses
2009
Tofundthedevelopm
ento
fHDIcandidatestoaccessMastersdegrees&
otherE
xecutiveShortCourses.FundingisspecifictolocalHETinstitutions
onaper-annum
dem
andbasis.
B-0002048\01\09
6300
InProgress
420.4710.258000
ABETSuppo
rt
2008/09and
2009
/10
Thisprojectw
illprovideABET(AdultBasicEducationandTraining)to
employeesinthebankingsector.Toassistem
ployeeswithinthesector
thathavelessthanaGrade9educationtoupskillthem
selvestoanNQF
level1Qualification.
B-0002046\01\09
1150
InProgress
420.4710.259000
CIDABursaries
(unemployed)
Thepurposeofthisprojectistoprovideabursaryfor19
0studentsfrom
HDIgroupstoattendthe2ndyearofa4yearprog
rammeattheC.I.D.A
FoundationsCollege.
B-0001992\01\09
1500
InProgress
BANKSETAAnnualReport2009/10| 93
Grow
ingForward|8 A
nnexures and A
cronym
s
Pro
ject
N
umb
erP
roje
ct
Nam
eO
bje
ctiv
eR
FP
Num
ber
Pro
ject
B
udg
etR
'000
Sta
tus
420.4710.262000
Kuyasa2009
Theaimofthisprojectistofundtheparticipationoflearnersinthe
PostGraduateLearnershipforunem
ployedyouthaswellastoafford
thesuccessfulapp
licantstheopp
ortunitytogainpracticalskillsw
ithin
participatinghostorganisations.Thisprojectisinlinewithandcontributes
toGovernm
ent’soverallaimtoalleviate
povertyand
toreducethe
unem
ploymentrateby50
%by20
14.ItaddressesspecificallytheNSDS
targetsofassistingunem
ploymentyouthintotheformallabourmarket
(indicator4.1).Thespecificsectorobjectivesaretouselearnershipsas
oneofthevehiclesto
enabletransformationwithinthesector.
B-0001993\01\09
11904
InProgress
420.4710.269000
Studyto
accommodatethe
deafintheworkplace
Toconductastudyonaccommod
atingtheDeafinthew
orkplaceand
sharebestpracticewiththeBankingandMicrofinancesector.
B-0002026\01\09
300
InProgress
420.4710.270000
Centresof
Excellence:NW
University
Theaimofthsprojectistofundtheestablishm
entofSouthAfricanCentres
ofExcellenceforthebroaderbankingsector.
B-0002219\01\09
5250
InProgress
420.4710.271000
SMELifelong
Learning
Workshops
2008/09&2009/10
Theob
jectiveoftheseinitiativesistobuildcapacityaswellastoenableand
supp
ortBANKSETA
registeredSMEsthroughthedeliveryofstructured
inform
ationsharingworkshopstopracticallyunderstandtheimpacton
smallbusinesses.
B-0002086\01\09
2400
InProgress
420.4710.273000
Doctoral&Post
DoctoralFunding
Tofund
Doctoraland
PostDoctoraltuitionatHET
institutionso
nce
researchpropo
salisaccepted.
B-0002059\01\09
1930
InProgress
420.4710.277000
BANKSETA
:ScarceSkills
Funding
Toprovidefullfundingtoemployersforlearnershipsforexistingem
ployees
ornew
entrantsinoneorm
oreofthefollowingareas:a)RiskManagem
ent,
b)IC
T,andc)R
elationshipManagem
entandd)TOPPProgram
me.
B-0002109\01\09
4000
InProgress
420.4710.278000
ICTBanking
Suppo
rtTechnician
Benchmarking
Toid
entifyinternationalm
odelsandskillsdevelop
mentbestpracticesin
theprod
uctionofICTskillsespeciallyin
scarceskillsareasid
entifiedin
SAbankingsector.Theprojectfindingswillprop
oseasolutiontowards
addressingICTscarceskillsinthebroaderBankingandM
icrofinance
sector.
B-0002110\01\09
2250
InProgress
420.4710.279000
SMESkillsDev
Toolkit
Toputinplaceatoolkitthatsuppo
rtstheskillsdevelop
mentandbusiness
perfo
rmanceimprovem
entofmicrofinanceinstitutionsespeciallyin
outlayingareas.
B-0002111\01\09
1500
InProgress
94 | ANNEXURES
Pro
ject
N
umb
erP
roje
ct
Nam
eO
bje
ctiv
eR
FP
Num
ber
Pro
ject
B
udg
etR
'000
Sta
tus
420.4710.281000
FAISPreparation
Thisprojectwillfundm
ainlythepreparationandplanningactivitiesofthe
FAISprojectforroll-outinthenextfinancialyear(asprovidedforinthe
2009/10BusinessPlanning).
B-0002139\01\09
400
Com
pleted
420.4710.284000
InterbankTraining
MaterialU
pdate
ThepurposeofthisprojectistofundtheupdateoftheBANKSETA
owned
TrainingM
aterialdeveloped
previouslythroughtheInterbankTraining
Materialdevelop
mentp
roject.
B-0002230\01\09
700
InProgress
420.4710.285000
HIV/AIDSTraining
Suppo
rtThe
funding
will
capacitateHIV/AIDSTraininginthe
banking
and
microfinancesector.
B-0002222\01\09
1400
InProgress
420.4710.287000
IEDPEurop
e2009
Tofu
ndthedevelop
mentof20seniorm
anagerstoassistwithpreparing
them
fortheexecutiverolesthattheywillenteroverthenext2-3years.
B-0002271\01\10
4014
Com
pleted
420.4710.288000
ProvincialStrategy
Implem
entation
Theaimofthisprojectistoprom
otetheBANKSETA
brandandindirect
perm
anentpresenceacrossSouthA
frica’snineprovincesinorderto
meettargetsstipulatedandsuppo
rtprovincialgrowthanddevelop
ment
strategies.
B-0002273\01\10
500
InProgress
420.4710.289000
PPPNew
Venture
CreationProvider
Theaimofthisprojectistofundthesupp
ortoffacilitatorsinFETsdelivering
NVCenterprisetraining.
B-0002274\01\10
500
Com
pleted
420.4710.290000
FAISSuppo
rt&
Implem
entation
FollowingFAISprojectpreparation,this2ndstageoftheprojectwillfund
theimplem
entationofthesolutiongeneratedinStage1.Theaimisto
assitthesectoremployerstocom
plywithFAISregulationsbythedeadline
dateof31/12
/200
9.
B-0002275\01\10
7100
InProgress
420.4710.291000
Co-op
erativeBank
Staffdevelopm
ent
Fundthesupp
orto
f14Co-op
banksbytrainingtheirstaff&shareholders
across3provinces.
B-0002276\01\10
850
Com
pleted
420.4710.292000
NVClearner
Program
me
Projectaimistofundnew
venturecreationlearnerstosetupandruntheir
ownbusinesses.
B-0002283\01\10
900
Com
pleted
420.4710.293000
DiscretionaryGrant
FundingWindo
w
2009
Thisprojectfundsthedem
and-drivenskillsdevelop
mentinitiativesthat
EmployersarenotabletoaccessthroughBANKSETA
fundedprojects.
B-0002259\01\10
1951
InProgress
420.4710.294000
Reasonable
Accom
odation
Strategies
Toconductastudyonreasonableaccom
mod
ationofdisabledpeop
lein
theworkplaceandsharebestp
racticewiththeBankingandMicrofinance
sector.
B-0002284\01\10
500
InProgress
420.4710.295000
Internships2009/10
Tofundtheimplem
entationofinternshipsinthesector
B-0002277\01\10
600
InProgress
BANKSETAAnnualReport2009/10| 95
Grow
ingForward|8 A
nnexures and A
cronym
s
Pro
ject
N
umb
erP
roje
ct
Nam
eO
bje
ctiv
eR
FP
Num
ber
Pro
ject
B
udg
etR
'000
Sta
tus
420.4710.296000
Letsem
aVII
learnership
Thepurposeofthisprojectistofundtheparticipationofm
atriculant
learnersinaFS
Bapp
rovedqualificationlinkedtoalearnership(itmay
followtheexitingLETS
EMAdeliverymethod).
B-0002278\01\10
27876
InProgress
420.4710.297000
18.2Niche
Learnerships
Theaimoftheprojectistofundunemployedlearnersinscareskillswithin
thebroaderBankingandMicrofinanceSector.
B-0002279\01\10
13185
InProgress
420.4710.298000
18.1Niche
Learnerships
Thisprojectaimstofundcurrentemployeesscareskillswithinthebroader
BankingandMicrofinanceSector.
B-0002285\01\10
11350
InProgress
420.4710.300000
KUYA
SA2009/10
Thepurposeofthisprojectistofundtheparticipationofpost-graduate
learnersinanFS
Bapp
rovedqualificationlinkedtoalearnership(itm
ay
followtheexitingKUYA
SAdeliverymethod).
B-0002281\01\10
14800
InProgress
420.4710.301000
Bridging
programmefor
learnerswith
disability
Tofundpeop
lewithdisabilitiesonabridgingprogram
metoallowthem
tom
eettheselectioncriteriaoftheBankingandM
icrofinancesectorfor
futurerecruitm
ent.
B-0002286\01\10
3000
InProgress
420.4710.302000
ScarceSkills
Funding
Todoananalysisanddeterm
inecompetenciesanddesiredoutcom
es
forthefollowingscarceskills:a)R
iskManagem
ent,b)ToP
Pandc)
SalesandRelationshipManagem
ent.Inadd
itiontheprojectw
illmake
recommendationstomeettherequirementsidentifiedthroughtheanalysis
andfundim
plem
entationoftherecommendations.
B-0002282\01\10
8400
InProgress
420.4710.303000
NationalPayment
System
ThisprojectwillfundtrainingontheNationalPaymentS
ystemforB
anking
andMicrofinanceStaff.
B-0002346\01\10
800
InProgress
420.4710.306000
Microfinance
Benchmarking
Thepurposeofth
isprojectisto
fundinternationalbenchmarkingonbest
practiceinmicrofinanceandskillsdevelop
mentinselectedandapp
roved
countries.
B-0002347\01\10
800
InProgress
420.4710.308000
Centreof
Excellence:
UniversityofFort
Hare
Theaimofthisprojectistoprovidefundingsuppo
rttotheFinancial
MarketsProgram
meofUniversityofFortH
arebyenhancingth
ecapacity
oftheEconomicsDepartm
entontheEastLondoncam
pusandgranting
bursariestostudentsonhonourslevelw
hichultimatelywillassistinthe
entryofcriticaleconomicsskillsinthebankingandmicro-financesector.
B-0002418\01\10
2725
InProgress
96 | ANNEXURES
Pro
ject
N
umb
erP
roje
ct
Nam
eO
bje
ctiv
eR
FP
Num
ber
Pro
ject
B
udg
etR
'000
Sta
tus
420.4710.309000
Work-readiness
Intervention
Theaimoftheprojectistoenableunemployedpost-matricandpost-
graduatelearnersbecome
more
employable.The
prog
ramme
will
incorporatesoftskillstraining,w
orkexperienceatvariousB
ANKSTA
registeredhostemployersandcoachingandmentoring.
B-0002417\01\10
3850
InProgress
420.4710.310000
Certificatein
Managem
ent
Develop
ment2
010
Tofundthedevelop
mentofJuniorandMiddleManagem
entcandidates.
Attheendofthisproject1
60candidateswouldhavebenefittedfro
mth
is
programmeasw
ellas75
JaM
Malumniw
how
illob
tainthefullM
ilpark
qualification.
B-0002394\01\10
400
InProgress
420.4710.311000
IEDPPlanning2010
Theaimofthispreparatorybudg
etisfo
rset-upcostsrelatedtorunning
twoInternationalExecutiveDevelop
mentProgram
mes(IEDP)nextyear
(2010).Thefundingwilentailsigningagreem
entstobuildthecapacityof2
localHETinstitutionsthatwillengagewith2overseasbusinessuniversities
toprovidethetailoredExecutiveDevelop
mento
fferings.
B-0002391\01\10
1800
Com
pleted
420.4710.312000
YouthPortal
Theaimoftheprojectistoenableunemployedpost-matricandpost-
graduatelearnersbecome
more
employable.The
funding
includes
thedevelopm
entofaYouthAlumniPortaltowhichallcurrentandpast
BANKSETA
beneficiariescan
participate
onissuesimpacting
career
developm
ento
fyouth.
B-0002475\01\10
1 00
0InProgress
420.4710.313000
FinancialLiteracy
Thepurposeofthisprojectistofundatrainingprogram
methatwilladvance
financialliteracyintheyouth,Coo
peratives,SMEsandcustom
ersofthe
selectedSMEs.
B-0002651\01\11
3000
InProgress
420.4710.314000
ASTD
Techknow
ledg
eConference2010
Togatherinformationandbenchm
arklatestworldtrendsinapp
licationof
multim
ediaandtechnolog
yplatform
sinlearningbyattendingtheASTD
Tech-knowledg
eInternationalC
onferenceinLasVegas,U
SA.
B-0002575\01\10
500
InProgress
420.4710.315000
InterSETA
Sum
mit
2009
Theaimofthesum
mitisto
providefundingsupp
ortandcollabo
ratewith
otherSETA
sinorderto
enhancetheSETA
brandandillustratethepo
wer
ofSETA
coo
rdinationintransformingSouthAfricaLearnnginthenextfive
years.
B-0002597\01\10
200
Com
pleted
BANKSETAAnnualReport2009/10| 97
Grow
ingForward|8 A
nnexures and A
cronym
s
Acronyms
ABET AdultBasicEducationandTraining
ASTD AmericanSocietyonTrainingandDevelopment
ATR AnnualTrainingReport
BANKSETA BankingSectorEducationandTrainingAuthority
BBBEE BroadBasedBlackEconomicEmpowerment
DHET DepartmentofHigherEducationandTraining
DoL DepartmentofLabour
ETQA EducationandTrainingQualityAssurance
FAIS FinancialAdvisoryandIntermediaryServicesAct
IEDP InternationalExecutiveDevelopmentProgramme
ICT InformationandCommunicationsTechnology
MFSA MicroFinanceSouthAfrica
NSDS NationalSkillsDevelopmentStrategy
PASA PaymentsAssociationofSouthAfrica
PFMA PublicFinanceManagementAct
QCTO QualityCouncilforTradesandOccupations
RPL RecognitionofPriorLearning
SLA ServiceLevelAgreement
SAQA SouthAfricanQualificationsAuthority
SAICA SouthAfricanInstituteofCharteredAccountants
SME SmallandMicroEnterprise
SDA SkillsDevelopmentAct
WSP WorkplaceSkillsPlan
BANKSETA
PhysicaladdressBANKSETAThornhillOfficeParkBlockNo.1594BekkerRoadMIDRAND1685
PostaladdressP.O.Box11678VORNAVALLEY1686
CallCentre 0861020002
Telephone 0118059661
Fax 0118058348
Website www.bankseta.org.za
REPUBLIC OF SOUTH AFRICA
higher education & trainingDepartment:Higher Education and Training
RP 97/2010ISBN 978-0-621-39425-2