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Skills at WorkAnnual Integrated Report
2011 - 2012
Chief Operating OfficerLesego LebusoTel +27 (11) 476 8570
Physical addressBuilding 3, Ground Floor299 Pendoring Road Blackheath2118
Website:www.fasset.org.zaCall Centre086 101 0001
ContACt DetAIlS
ContACt DetAIlS Fasset Annual Integrated Report
Fasset is the Finance and Accounting Services Sector Education and Training Authority
1 April 2011 to 31 March 2012
PublisherFasset, Chief Executive OfficerP.O. Box 6801Cresta2118
Editing and distributionMarketing and Communications Department, Fasset
Design, layout, photography and printingBlackmoon Design and Advertising: www.blackmoon.co.za
Skills at Work
"Making every workplace a training space."
our Vision
“To influence the effective operation of the labour market, through effective skills development, so as to ensure the appropriate supply of competent labour necessary to compete in the global economy.”
our Mission • Toimprovethecompetenceofemployeesandpotentialemployees,
thereby enhancing productivity in the sector• Toincreasethelevelofinvestmentineducationandtraininginthe
sector, and to optimise the Return on Investment (ROI)• ToencourageemployersandemployeestoadoptacultureofLifelong
Learning• Toensurethequalityofeducationandtraininginthesector,tosupport
the development of standards in line with the National Qualifications Framework (NQF), and to actively promote these standards
• Toexpandtheprovisionofeducationandtraininginthesectorthroughpartnerships with public and private providers of education and training
• Toenhanceco-operationbetweenthepublicandprivatesectors• TosupporttheobjectivesoftheEmploymentEquityAct(EEA)of1998• Toenhanceaccesstolearningopportunitiesinthesector• Topositionthesectoras“thesectorofcareerchoice”forprospective
learners and entrants into the labour market
Cheryl JamesCHIeF eXeCUtIVe oFFICeR
Dr Bonginkosi"Blade " nzimandeMInISteR oF HIGHeR eDUCAtIon AnD tRAInInG
Index
Annual Report
Chairman's Statement 6
ChiefExecutiveOfficer'sReview 9
ReportoftheAuditandRiskCommittee 12
Annual Financial Statements
ReportoftheAuditor-General 15
ReportoftheAccountingAuthority 18
StatementofFinancialPerformance 20
StatementofFinancialPosition 21
StatementofChangesinNetAssets 22
CashFlowStatement 23
StatementofComparisonofBudgetandActualAmounts 24
AccountingPolicies 25
NotestotheAnnualFinancialStatements 33
Integrated Report
ReportProfile 63
OrganisationalContext 64
StakeholderEngagement 65
The Fasset Board 66
Operations 68
StrategicImperatives 71
PrioritiesandObjectives 73
OrganisationalPerformanceandSustainabilityImperatives 74
FuturePerformanceObjectives 83
Appendices
AppendixA:NSDSIIITargetsandAchievements 84
AppendixB:Fasset’sBoard 89
AppendixC:WorkingCommitteesandMeetingAttendance 90
AppendixD:Organogram 93
Fasset Annual Integrated Report 2011-2012
6
Honourable Minister, it is with pleasure that we present to you the Annual Integrated Report of the Finance and Accounting Services Sector Education and Training Authority (Fasset), for the period 1 April 2011 to 31 March 2012.
It is a privilege for me to present our first annual integrated report. Ascustodiansofpublicfunds,werecognisetheneedtoaccountto society in terms of how we allocate funds, the stewardship that weexerciseoverthesefundsandthevaluethatwecreatetoallour various stakeholder groupings.
AtFasset,wearemindfulofthemagnitudeoftherolethatweneedto play in society in making a meaningful contribution towards building a skilled and capable workforce. It is for this reason that we continue to devise and implement national, sectoral and workplacestrategiesthatarealignedtotheobjectivesofnationaleconomic and social development priorities.
GoVeRnAnCe
InthecontextofanewlicenceperiodfortheSeta,theMinisterappointed a new Board, which came into operation on 1 April 2011. The transition has been seamless, enabling
Fasset to continue to deliver at a very high level. The Fasset Board is very conscious of the responsibilities that it has been entrusted with as it leads the Seta to take on a much more activist approach to addressing the sector skills needs. Fasset has sharpeneditsfocusonusingqualityresearchtoidentifythecriticalareas of need and to then design innovative solutions that address those sector needs.
Wealsohaveafiduciaryduty,astheFassetBoard,toensurethatfunds are invested and managed appropriately, enabling Fasset to meet its strategic goals. The Board is therefore very pleased to report that Fasset has received a clean audit opinion from the Auditor-GeneralofSouthAfrica,forthetwelfthyearinsuccession.
StRAteGy AnD opeRAtIonAl peRFoRMAnCe
ConsistentwithFasset’s strong track record fordeliveryover thepast twelve years, the year under review has been characterised bysolidperformance.WehavemetourNSDSIIItargetsfortheperiod and continue to place attention on achieving our vision, which is “to influence the effective operation of the labour market, through effective skills development, so as to ensure appropriate supply of competent labour necessary to compete in the global economy.”
tsakani MalulekeCHAIRMAn
Chairman’sStatement
Fasset Annual Integrated Report 2011-2012
7Chairman's Statement
We continue to be financed from the Skills DevelopmentLevy (SDL) paid by employers in accordance with the SkillsDevelopmentLeviesAct(SDLA)(Act9of1999),asamended,comprising1%ofthesalaryandwagebillofemployersinthesector. In accordance with the determining legislation, levies weredistributedasfollows:• 20%offunds(paidtotheSouthAfricanRevenueService
(SARS)withheldbytheNationalSkillsAuthority(NSA)forpurposes of funding national skills development initiatives), and
• 80%offundspaidtoSARSarethentransferredtoFasset,whichfundsaretobeusedasfollows:
- 70%ismadeavailableforgrants.50%ofthisamountispaidoutintermsofthelegislatedMandatoryGrantsand20%isallocatedtoDiscretionaryFunds,whichisusedforDevelopmentProjectsandotherstrategicinterventions;
- 10%isallocatedtowardsadministrativecoststofundoperationalrequirementsoftheSeta.
Employersareabletoclaimback50%oftheSkillsDevelopmentLevy (SDL) paid toSARSbywayof aMandatoryGrant. Toaccessthisgrant,employersarerequiredtosubmitaWorkplaceSkillsPlan (WSP) for theupcomingyearanda reporton theimplementationoftrainingascontainedintheAnnualTrainingReports(ATRs)inrespectofthepreviousyear.Fasset’sBoardisvery mindful of the need to ensure that the pool of discretionary funding is disbursed strategically, in line with sector priorities as defined in the Sector Skills Plan (SSP). These sector priorities are approved by the Board at its annual strategic planning session.
For the year under review, member organisations in the Fasset sectorwereabletoaccessfivegrants,namely:• MandatoryGrantsamountingtoR149,2millionwaspaid
outinrespectofAnnualTrainingReports(ATR)2010/11andWorkplaceSkillsPlans(WSP)2011/12,and
• DiscretionarygrantsamountingtoR19,7millionwaspaidinrespectofthefollowinggrants:
- StrategicCashGrant(SCG)2011/12 - LearnershipCashGrant(LCG)2011/2012 - AssessorandModeratorGrant(AMG)2011/2012 - SMMEGrant2011/2012.
FundsamountingtoR82,7millionfortheperiodunderreview,havebeenallocatedtostrategic(development)projects.Whilstthe new Board has made strides in making the operations of the organisation more innovative and proactive in designing appropriate solutions to skills needs, there is some way to go beforethisobjectiveisachieved.
All budgeted income for 2011/2012 has been spent orallocated to specific skills development projects for the sector.GenerallyRecognisedAccountingPractice(GRAP)doesnotpermitcommitted funds to be reported as a liability. This unfortunately creates a misconception that there are unspent funds. It is important to emphasise that 100% of budgeted funds have either beenspentorallocated toapprovedprojects,whichare currently inprogress, and for which payment is only due on full completion of all deliverables. The finalisation of all deliverables can, in some instances, take up to four years, during which time the allocated funding is held in trust and is therefore, reflected in the Fasset bank accounts.
Ourlevyincomefortheyearunderreviewincreasedby41%dueto levy receipts being higher than budgeted, which is attributable to a13%growthintermsofthenumberofcompaniesthatjoinedtheFassetsectoraslevy-payingmembers.InadditionFassetreceivedR21million levydue to levyadjustments related toprior years.TheseadjustmentsweremadebyvariousemployersinresolvingtheirquerieswithSARS.SARSalsojoinedtheFassetsectorfrom1April2012andhasbecomethelargestcontributorofleviestoFasset.WewelcomeSARS, togetherwithanumberof severalothercompanies,whohavejoinedtheFassetsector.
Full financial details for the 2011/2012 financial year areprovidedonpages14to61ofthisreport.
opeRAtIonAl HIGHlIGHtS
Fasset’s ability to support learnerships, particularly within theaccountancy profession, remains encouraging. The development ofnewqualificationsattests to Fasset’s focusonaddressing theskills development needs across the breadth of its designated sector.WearepleasedtoreportthatsignificantprogresshasbeenmadeonthedevelopmentofqualificationsforBusinessAnalystsatapostgraduatelevel,aswellasforFinancialMarketsandTax.ItisworthmentioningthatthelattertwoqualificationsarethefirsttwooccupationalqualificationsthatwehavesubmittedtotheQualityCouncil for Trades and Occupations (QCTO) for registration. While the process is taking a lot longer than expected, goodprogress has been made, nevertheless.
CHAllenGeS
AchallengeforeverySetaisbeingabletoprovethattheSetais adding value in a sustainable manner. Minister Nzimande is on record for saying that he has not seen or felt the impact of the R37,5billionploughedintoSetassince2000.TheFassetBoardsharestheMinister’sconcernandisverycognisantofthefactthat
Fasset Annual Integrated Report 2011-2012
8 Chairman's Statement
NSDSIIIplacestheresponsibilityonallSetastobediligentinensuring that their funding decisions are informed by the need to make a substantial and lasting impact.
It is apt therefore, that our Board has had serious conversations around the appropriateness of Fasset allocating so much funding to Work Readiness Programmes. As custodians ofpublic funding, it is incumbent upon our Board to ensure that our stakeholders are getting very good value for money and that our funding decisions are strategic, rational, and as far as is humanly possible, scientific.
WeareacutelyawarethattheSetaneedstomakeapositiveimpact on the employability of young people that participate inFasset-fundedprojects.Consequently,oneofthecriteriaforthe approval of funding for Development Projects is that theprojectmustclearly targetaplacement rateofat least70%.While this target has always been achieved, and in manyinstances exceeded, the Board has identified the need toquantifytheimpactthatFasset-fundedWorkReadinessProjectshavehadoverthepast12years,andcontinuetohave.Fassethas therefore commissioned a longitudinal study to measure theimpactthattheFasset-fundedworkreadinessprogrammeswithin the Fasset sector have had over the past twelve years. Theoutcomeofsuchastudywillenableustonotonlyquantifytheimpactoftheseprojects,butalsoassistusinensuringthat,going forward, Fasset’s discretionary funding is deployed inamannerthatprovidesmaximumreturnoninvestmentforourstakeholders.
InnoVAtIon
Shiftingawayfromanapproachof‘doingmoreofthesame,’as a Board, we have had difficult conversations around how to do more with the money with which we have been entrusted. Wehavethereforetakenaveryconsciousdecisiontoallocatepublicfundingtohigh-impactinterventions.Informedbyresearchand sector needs identified in our Sector Skills Plan (SSP), one of the most important decisions taken at our annual Strategic PlanningSessionfortheperiod1April2012toMarch2013istouseDiscretionaryGrantfundingmoremeaningfully.
The Board has taken the decision to direct discretionary funds towards upskilling as well as fast-tracking the transformationagenda, by funding only African Black people through ourLearnershipCashGrant (LCG),StrategicCashGrant (SCG),SMMEGrantandDevelopmentProjects.WebelievethatthisisanecessaryinterventionaimedatensuringthatFasset’sactivitiesare focused on increasing the number of skilled people in the Fasset sector while at the same time addressing the issue of historical imbalances.
pRoSpeCtS
WearealreadybenefittingfromthechangesthattheMinisterhasmade in terms of how Setas are run. Fortunately, Fasset has always been a strong performer and this affords our Board the opportunity toreflectonFasset’sstrategicimperativeandbuildonwhathasbeen achieved in order to best position the Seta to become more interventionistinitsapproachandfocusonhigh-impactareastoensuredeliveryacrossthepost-schoolingsystem.
WehavereflectedontheGreenPaperforPost-schoolEducationandTraining,andwelookforwardtoaligningFasset’sactivitiesin a much more coherent fashion with all the players in the entire post-schoolingsysteminordertomaximisedeliveryandcontributemeaningfully in the skills revolution.
GRAtItUDe
IwishtoextendmythankstoallBoardmembersfortheirrobustand carefully considered inputs, support and guidance over the past year. By having those difficult conversations we have been abletopushtheenvelopeintermsofFasset’sdeliveryandimpact.
I am very fortunate to have a Board, which is very passionate and activist-mindedintermsofskillsdevelopment.Wewanttomakea real difference in terms of skills development within our sector. Weareverycognisantofourresponsibilitiesandrecognisethatfinance, accounting, management consulting and other financial skills play a pivotal role in the sound functioning of the South Africaneconomy,andintheachievementofnationalimperativessuchas theNewGrowth Path (NGP)and the Industrial PolicyActionPlan(IPAP).WhileapplaudingtheachievementsofFasset’sprevious Boards, we humbly recognise, however, that there is so much more that we need to do, before we can comfortably say, we have achieved a skills revolution within our sector.
On behalf of the Board I would also like to thank the Fasset management team and staff for their dedication and hard work during the period. Fasset’s achievementswould not have beenpossible without your commitment to skills development.
We invite our stakeholders to attend Fasset’s Annual GeneralMeeting (AGM)on13September2012.OurAGMprovidesawonderfulopportunitytoaskquestionsofourBoard,ChairmanandCEO.Italsoaffordsustheopportunitytoengagewithyou,our valued stakeholders.
tsakani Maluleke
CHAIRMAN
Fasset Annual Integrated Report 2011-2012
9
Report by the CEO to the Executive Authority and Parliament of the Republic of South Africa.
The past twelve months has been characterised by great change.Fassetisonanewpath:wehaveanewhomeintheDepartmentofHigherEducationandTraining (DHET),wehavemovedoffice,wehaveanewAct,anewNationalSkillsDevelopmentStrategy (NSDS III),anewChairman,a new Board and a new Chief Operating Officer (COO). Despiteallofthesechanges,wehavecontinuedtodeliveratahighlevelandhavemetallofourNSDSIIItargetsforthe period.
WhilestandardmeasuresforsuccessincludeachievementsagainstNSDStargetsandachievementsintermsofnationalstrategies,Fassethasneverviewedlearnersasnumbers.Weare very cognisant of the fact that by upskilling individuals through our skills upliftment interventions, facilitating skills at work, we are able to make the future count for thousands ofyoungSouthAfricans,theirimmediatefamilies,andthebroader communities from which they are drawn.
Minister Nzimande has implored all stakeholders to make everyworkplacea training space.During theyear underreview,19561individualswereupskilled throughFassetlearnerships, Fasset-funded Development Projects andFasset’s Lifelong Learning events. These achievements
confirm thatwehaveheededMinisterNzimande’scall to‘makeeveryworkplacewithinoursector,atrainingspace,’and are a very clear demonstration of ‘skills at work’,within our sector. Recognising that finance, accounting, management consulting and other financial skills are fundamental to the sound functioning of society, business and the economy as a whole, we will continue relentlessly to make the Fasset sector, the sector of career choice for manyyoungSouthAfricans.
oppoRtUnItIeS
Changes in our operating environment have opened up many new opportunities, including the opportunity to look at governance, specifically, to see how Fasset can link into integrated reporting and play a leading role in the public sector in this regard. The acknowledgement that we are part of a much broader community, and also an employer and an organisation in our own right, prompted us to take our first tentative steps in our journey towards integratedreporting. This will provide our stakeholders with greater insights intoourbusinessandthevaluewecreate.Whileit is not a statutory requirement for Fasset to produce anintegrated report, there is recognition globally that it is important that organisations take social, governmental, economic and environmental issues into account in their reporting, demonstrating to a wide range of stakeholders, what they do, how they create value, and how they are
Cheryl JamesCeo
Ceo’s Review
Fasset Annual Integrated Report 2011-2012
10 CEO's Review
addressing stakeholder needs and concerns. In terms of this, we have assessed our maturity curve with respect to alignment to the King III Code of Good CorporateGovernanceandhavebegunmeaningfuldialogueonwhatour reporting journey could look like. We look forwardto the natural evolution of a process and the value this can add to strengthening our levels of accountability to our stakeholders.
Being part of DHET means there is now a much closeralignmentofeducationandtraininginitiatives.TheGreenPaperonPost-schoolEducationandTrainingandNSDSIII,affords Setas the opportunity to look at the whole person throughout the talent pipeline. This approach is far more sustainable in the long-run,and it isanapproach,whichFassethasalwaysembracedinthefundingofDevelopmentProjects.
HIGHlIGHtS
There have been many highlights during the year. The submissionofour first twoqualifications to theQCTOforregistration is an important milestone as these are the first twooccupationalqualifications,whichFassethassubmittedfor registration.
Since Fasset is committed to transformation, Fasset’sachievement of a Broad Based Black EconomicEmpowerment (B-BBEE) level 5 rating during the periodis clearly a highlight, and even more so, in view of the fact that Fasset is the first Seta ever to obtain a (B-BBEE)scorecard.
In the interests of sustainability, it is important to highlight thefactthatoverthepast12years,collectively,123392individuals have completed Fasset learnerships, benefited fromFasset-fundedDevelopmentProjectsorattendedFassetLifelong Learning events. Placed in perspective, thesebeneficiaries would fill Soccer City and more than half of the Moses Mabhida Stadium.
We are also very proud of the fact that our ten yearcelebratory book, entitled: “Decade of Delivery,” hasscoopeduptwoawardsfromtheSouthAfricanPublicationForum. Most importantly, this publication has been disseminated to a much wider stakeholder grouping, than the Fasset sector, raising awareness around the Fasset Brand, Fasset interventions, Fasset delivery, and the compelling reasons, which position the Fasset sector, as a sector of career choice.
InnoVAtIon
Wehavealwayssubscribedtotheviewthatinnovationisthelifeblood of any organisation. By constantly innovating, Fasset is able to find new ways to add value to its stakeholders.
Minister Nzimande has called upon Setas to open up offices in townships and rural areas, to enable greater access to information and opportunity for learners and graduates from these areas.
As Fasset is one of the smaller Setas, this directive haspresented Fasset with an enormous challenge, as this option is frankly, unaffordable.We have, however, responded tothischallengeinaninnovativeandcost-effectivemanner,bylaunchingourBrandAmbassadorCampaign.Thiscampaignhas enabled us to deliver on our mandate of ensuring that CareerGuidanceinformationisaccessibletolearnersinruralareas.
Setas are criticised for historically allocating very little funding foreducationinpublicuniversitiesandFurtherEducationandTraining (FET)Colleges. A very important innovation duringthe period is the approval, in principle, by our Board of the implementationofaGrant. Thegrantwillbeoffered in thenextfinancialyear.Stakeholderengagementwithemployersand learners revealed that one of the challenges in our sector is that learners are unable to support themselves and pay back theirNationalStudentFinancialAidScheme(NSFAS)loanonalearner’ssalary.Asaresult,somelearnersleaveoursector,beforecompletingtheirprofessionalqualification.
The NSFAS Grant seeks to pay off learners’ loans in full,enabling employers to retain these learners, and also enablinglearnerstocompletetheirprofessionalqualifications.BypayingoffNSFASloansinfull,fundingwillbeavailableto fund more learners.
WearealsoproudofourReturnonInvestment(ROI)model,which measures the effectiveness of Fasset’s marketing,advertising and communication. This is pioneering work, which we have never done before. We look forwardto implementing this in the next year, and being able todemonstrate the effectiveness of our marketing, in terms of achievingourstrategicgoalsandobjectives.
Fasset Annual Integrated Report 2011-2012
11CEO's Review
CHAllenGeS
AtFasset,leadershipisabouttakingaproactiveapproachto finding relevant, effective and sustainable solutions to skills development challenges. It is about creating value for and providing service excellence to our stakeholders,ourselves and to the next level of delivery and practice,while ensuring meaningful impact.
The Green Paper on Post-school Education and Trainingand theAmendmentof theSectorEducationandTrainingAuthorities(SETAs)GrantRegulations,mayrequirechangesin terms of Fasset’s strategy and its operating model.Fortunately, Fasset has always been very responsive and able to adapt very quickly to changes in the operatingenvironment. Our track record of delivery over the past twelve years confirms that Fasset is more than up to the challenge.
pRoSpeCtS
Our priorities for the year ahead are very clear. Our Strategic Plan for the period 2012-2017 and AnnualPerformance Plan (APP) for the period 2012-2013 havebeen submitted to DHET and tabled in Parliament. Wewill continue todeliveragainst these strategicobjectives.WewillalsocontinuetodeliveragainstNSDSIIIandanyother DHET directives and national imperatives, and anychanges that may be required in terms of the regulatoryenvironmentasrequiredintheyearahead.
We share ourMinisters vision of “a skilled and capableworkforce that shares in, and contributes to, the benefits andopportunitiesofeconomicexpansionandaninclusivegrowthplan.”Wearecommittedtodoingwhatittakestoachieve this vision within our sector.
GRAtItUDe
I am very cognisant of the critical role that the Chairman andBoardplay inFasset’son-goingsuccess. Iwould liketo thank the Chairman and Board for their guidance and support during the period, which is critical in ensuring our sustainability as a Seta. It is also critical in ensuring that Fasset continues to deliver at the highest levels. I am indebtedtoo,tomymanagementteamandstaff.Withouttheirbuy-in,aswellasthebuy-inandsupportofallofourstakeholders, none of our achievements in our twelfth year of operation would have been possible.
Cheryl JamesCEO
Fasset Annual Integrated Report 2011-2012
12
Report on the Audit and Risk Committee in terms of Regulation 27 (1) (10) (B) and (c) of the PFNA of 1999, as amended.
Wearepleased topresent our Report for the financial yearended31March2012.
Audit and Risk Committee Members and attendance
TheAudit and RiskCommittee held four scheduledmeetingsduring the period. Details of the Audit and Risk Committeemembers, the number of meetings attended, resignations, and theremunerationreceivedappearinTable1below.
Table 1: Audit and Risk Commttee Attendance and Remuneration 2011/2012
MemberMandiOlivier
Shahied Daniels
Stadi Mngomezulu
ErnaSwart
Edson Ragimana
Veronica du Preez
MatshepoMore1
PositionIndependent
Member Board
MemberBoard
MemberIndependent
MemberIndependent
MemberIndependent
Member19May2011 -
21July2011 -17November2011 û -
23February2012 û û -
Meetings Attended 4 2 3 4 3 4 1
Remuneration during year for financial year ending31March2012
R20000.00* R3055.00 R4582.50* R20000.00* R15000.00 R20000.00 R5000.00
Travel reimbursement R615.60 R398.46 R1333.80 R0 R0 R1292.58 R0
¹ Board term ended*Committeefeespaidto:SouthAfricanInstituteofCharteredAccountants(SAICA)iroMOlivier National Treasury iro S Mngomezulu AccountingStandardsBoard(ASB)iroESwart Remuneration Rate: Formalmeetings=R5000.00permeetingforindependentmembers =R1527.50permeetingforBoardmembers
Report of the Audit and Risk Committee
Fasset Annual Integrated Report 2011-2012
13Report of the Audit and Risk Committee
AUDIt AnD RISk CoMMIttee ReSponSIBIlIty
TheAuditandRiskCommitteehasadoptedappropriateTermsof Reference as its Audit and Risk Committee Charter. TheCharter is updated regularly and complies with the principles ofgoodgovernanceandwiththerequirementsof thePFMA.TheAuditandRiskCommitteeisaccountabletotheBoardandhasanoversightfunctionwithregardto:• Financialmanagement,• Riskmanagementandinternalaudit,• Compliancewithlaws,regulationsandgoodethics,and• Reportingpractices.
TheAuditandRiskCommitteehassatisfied its responsibilitiesfor the year in compliance with its terms of reference.
RepoRt on opeRAtIonS oF tHe AUDIt AnD RISk CoMMIttee
During theperiodunder review, the followingactivitieswereundertakenanddemonstratethecommitmentoftheAuditandRiskCommitteetoachievingitsmandate:• Reviewedquarterlymanagementaccounts,• Reviewed the riskanalysis, aswell as the internalaudit
coverage plans and budget,• Considered internal audit reports and made
recommendation as appropriate,• Monitoredprogresswiththeinternalauditcoverageplans
as well as management’s follow-up of matters requiringattention throughout,
• MonitoredcompliancewithFassetpoliciesandapplicablelegislation, and
• Conducted separate meetings with both internal andexternalaudit.
tHe eFFeCtIVeneSS oF InteRnAl ContRol
TheAuditandRiskCommitteeissatisfiedthat:• TheriskmanagementprocessisinplaceandthatFasset’s
majorrisksareproperlymanaged,• Theinternalcontrolsystemsareeffective,• The Internal Auditors are operating objectively and
independently, and• Matters requiring management attention have been
adequatelyaddressed.
eVAlUAtIon oF FInAnCIAl StAteMentS
TheAuditandRiskCommitteehas:• ReviewedanddiscussedwiththeAuditorandManagement
theauditedAnnualFinancialStatementstobeincludedintheAnnualReport,and
• Reviewed the Auditors’ management report andmanagement’sresponsethereto.
The Audit and Risk Committee concurs and accepts theconclusionsoftheAuditorsontheAnnualFinancialStatementsand is of the opinion that the audited Annual FinancialStatements be accepted and read together with the report of theAuditor-General.
Mandi olivier
AuDIT AND RISk COMMITTEE CHAIRMAN
Integrated ReportAnnual FinancialStatements
Index
ReportoftheAuditor-General 15
ReportoftheAccountingAuthority 18
StatementofFinancialPerformance 20
StatementofFinancialPosition 21
StatementofChangesinNetAssets 22
CashFlowStatement 23
StatementofComparisonofBudgetandActualAmounts 24
AccountingPolicies 25
NotestotheAnnualFinancialStatements 33
Fasset Annual Integrated Report 2011-2012
Report of the Auditor-General to Parliament on the Finance and Accounting Services Sector Education and Training Authority.
RepoRt on tHe FInAnCIAl StAteMentS
Introduction
1. IhaveauditedthefinancialstatementsoftheFinancialand Accounting Services Sector Education andTrainingAuthority (Fasset) set out onpages17 to61which comprise the statement of financial position as at 31 March 2012, the statement of financialperformance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policiesandotherexplanatoryinformation.
Accounting Authority’s responsibility for the financial
statements
2. The accounting authority is responsible for thepreparation and fair presentation of these financial statementsinaccordancewithSouthAfricanStandardsof Generally Recognised Accounting Practice (SAStandardsofGRAP)andtherequirementsofthePublicFinanceManagementActofSouthAfrica,1999 (ActNo.1of1999)(PFMA),andforsuchinternalcontrolas the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-General’s responsibility
3. My responsibility is to express an opinion on thesefinancial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of
Report of the Auditor-General
SouthAfrica,2004 (ActNo.25of2004) (PAA), theGeneralNoticeissuedintermsthereofandInternationalStandardsonAuditing. Those standards require that Icomplywithethicalrequirementsandplanandperformthe audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. Anauditinvolvesperformingprocedurestoobtainauditevidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessmentof the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevanttotheentity’spreparationandfairpresentationof the financial statements in order to design audit procedures that are appropriate in the circumstances, butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
5. I believe that the audit evidence I have obtained issufficient and appropriate to provide a basis for my audit opinion.
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the financial position of Fasset asat31March2012,and itsfinancialperformanceand cash flows for the year then ended in accordance withSAStandardsofGRAPandtherequirementsofthePublicFinanceManagementActofSouthAfrica,1999(ActNo.1of1999)(PFMA).
Annual Financial Statements 15
Fasset Annual Integrated Report 2011-2012
16 Report of the Auditor-General
RepoRt on otHeR leGAl AnD ReGUlAtoRy ReQUIReMentS
7. Inaccordancewith thePAAand theGeneralNoticeissued in terms thereof, I report the following findings relevant to performance against predetermined objectives,compliancewithlawsandregulationsandinternalcontrol,butnotforthepurposeofexpressingan opinion.
Predetermined objectives
8. I performed procedures to obtain evidence aboutthe usefulness and reliability of the information in the annualperformancereportassetoutonpages14to61oftheannualreport.
9. The reported performance against predeterminedobjectiveswasevaluatedagainsttheoverallcriteriaofusefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury annual reporting principles and whether the reported performance is consistent with the planned objectives.Theusefulnessofinformationfurtherrelatesto whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and timebound)andrelevantasrequiredbytheNationalTreasury Framework for managing programme performance information.
The reliability of the information in respect of the selectedobjectives isassessed todeterminewhetheritadequatelyreflectsthefacts(i.e.whetheritisvalid,accurate and complete).
10. Therewerenomaterialfindingsonannualperformancereport concerning the usefulness and reliability of the information.
Compliance with laws and regulations
11. I did not identify any instances of material non-compliance with specific matters in key applicable lawsandregulationsassetoutintheGeneralNoticeissuedintermsofthePAA.
Internal control
12. I did not identify any deficiencies in internal controlwhich I considered sufficiently significant for inclusion in this report.
Pretoria
31July2012
Fasset Annual Integrated Report 2011-2012
17Annual Financial Statements
The Annual Financial Statements for the year ended 31 March 2012, set out on pages 17 to 61, have been approved by the Accounting Authority on 24 May 2012 in terms of section 51(1) (f) of the Public Finance Management Act (PFMA), No 1 of 1999 as amended, and are signed on their behalf by:
__________________________________________ __________________________________________
CA James (Ceo) t Maluleke (Chairman)
Fasset Annual Integrated Report 2011-2012
18 Annual Financial Statements
Report of the AccountingAuthority
Honourable Minister, it is with pleasure that the Accounting Authority presents to you the Annual Financial Statements of the Finance and Accounting Services Sector Education and Training Authority for the period 1 April 2011 to 31 March 2012.
GoVeRnAnCe
AsFasset’sAccountingAuthority,itistheBoard’sresponsibilityto prepare Financial Statements that fairly present Fasset’sfinancialpositionat31March2012andalso theFinancialPerformanceandSummaryCash FlowActivities for the yearending31March2012.TheBoardofFassetisoftheopinionthatappropriateAccountingPolicies,supportedbyreasonableandprudent judgementandestimates,havebeenappliedona consistent, going concern basis and the Annual FinancialStatements comply with GRAP and the PFMA (1999) asamended.
With regard to systems and controls, these include the properdelegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation ofduties. Further, the management of these financial affairs has been undertaken in accordance with the Financial and Procurement Policies which have been put in place, and which comply with the KingIIICodeonCorporateGovernance.Inaddition,allnecessarystructures, policies and procedures are in place in order to ensure compliancewiththerequirementsofthePFMA.TheseincludeanindependentAuditandRiskCommittee,aFraudPreventionPlanandInternalAuditors.Fassetthereforecomplieswithbestpractice,and with all legislation with regard to governance.
The Constitution of the Seta places additional responsibilities on theBoard;theseinclude:• providingstrategicdirectiontoFasset,• determiningstrategiesandpolicies,and• managing performance against agreed strategies and
business plans.
In order for the Board to successfully fulfil its mandate, a comprehensive induction programme is run for new Board Members.
Aprocess of self assessment and discussion of performanceby the board has been implemented and it is hoped that this will serve as an additional useful tool in ensuring effective functioningoftheBoard.Thisself-assessmentprocesshasalsobeen implemented for the various subcommittees of the Board.
The Accounting Authority is of the opinion that Fasset willcontinue as a going concern for the current year. This assertion ismadeafterconsideringthat:• Fassethasmet itsBudgetary requirements for thecurrent
year and will continue to do so in the future, and• Fasset does not haveanypending legalmatters for the
current financial year.
nSDS
Fasset’sachievementsintermsofNSDSIIItargetsarereflectedinAppendixA(page84)
ReMUneRAtIon
The remuneration of the CEO and COO, who are full-timeemployees, is reflected in Table 2, page 19. The boardmembers are remunerated for attending board and sub committee meetings, based on the remuneration guidelines from National Treasury and the level of remuneration approved bytheMinisterforHigherEducationandTraining.TheamountspaidtoeachmemberoftheBoardaredetailedinTable3.
tsakani Maluleke
CHAIRMAN
Fasset Annual Integrated Report 2011-2012
19Annual Financial Statements
Table 2: CEO and COO’s Remuneration
Ceo'S ReMUneRAtIon2011/2012 2010/2011
Allowances:Car&subsistence 42000 42000Base Remuneration 1603672 1388708TotalGuaranteedCosttoCompany 1 645 672 1 430 708 NonGuaranteed(atrisk)Remuneration 193181 143071TotalGuaranteedandNon-GuaranteedRemuneration 1 838 853 1 573 779
Coo'S ReMUneRAtIon
COO 1* 2011/2012 2010/2011
Allowances:Car&subsistence 1153 13836Base Remuneration 56809 987659Leavepaid 40423 -TotalGuaranteedCosttoCompany 98 385 1 001 495 NonGuaranteed(atrisk)Remuneration 100150 100150TotalGuaranteedandNon-GuaranteedRemuneration 198 535 1 101 645
*COO1 Resigned 20 April 2011
COO 2* 2011/2012 2010/2011
Allowances:Car&subsistence - -Base Remuneration 528787 -TotalGuaranteedCosttoCompany 528787 -NonGuaranteed(atrisk)Remuneration 27306 -TotalGuaranteedandNon-GuaranteedRemuneration 556 093 -
*COO 2 Joined 10 August 2011
Table 3: Board and Sub Committee Remuneration
Name Board EXCO REMCO FINCO Total
P. Badal R12220.00 R1527.50 R13747.50S.Daniels R15275.00 R15275.00A.Dempsey R15275.00 R3055.00 R16806.50 R35136.50H.Fischer R16149.00 R6110.00 R22259.00S.Gounden R15275.00 R7637.50 R22912.50K.Hlongwane R12220.00 R12220.00C. Karsten R6110.00 R6110.00D.Kopolo R15275.00 R6110.00 R21385.00S.Louis R12220.00 R6110.00 R18330.00B. Mathibela R12220.00 R10692.50 R22912.50T. Maluleke R19645.00 R9822.50 R29467.50S. Mngomezulu R9165.00 R9165.00M. Moloi R15275.00 R7637.50 R3929.00 R26841.50M. Mushwana R18330.00 R11566.50 R29896.50Total R194 654.00 R35 790.00 R8 511.50 R46 703.00 R285 658.50
Fasset Annual Integrated Report 2011-2012
20 Annual Financial Statements
2011/12 2010/11Notes R'000 R'000
REVENuENon-exchange revenue 310 285 218627SkillsDevelopmentLevytransfer 2 308 359 217296SkillsDevelopmentLevypenaltiesandinterest 1 926 1331Exchange revenue 9 203 6062National Skills Fund income 15 - 5Investment income 3 9 095 5995Other income 4 108 62
Total Revenue 319 488 224689
EXPENSESEmployergrantandprojectexpenses 5 (225 274) (190846)Administrationexpenses 6 (25 519) (20789)NationalSkillsFundexpenses 15 - (5)
Total Expenses (250 793) (211640)
SuRPLuS FOR THE YEAR 1 68 695 13049
StAteMent oF FInAnCIAl peRFoRMAnCeFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
21Annual Financial Statements
StAteMent oF FInAnCIAl poSItIonFoR tHe yeAR enDeD 31 MARCH 2012
2011/12 2010/11Notes R'000 R'000
ASSETS
Non-Current AssetsProperty,plantandequipment 7 1 027 554Intangible assets 8 47 8
Current AssetsAccountsreceivablefromnon-exchangetransactions 9 2 619 750Accountsreceivable-Other 10 617 2456Cashandcashequivalents 11 182 985 132738Consumables 30 37
Total Assets 187 325 136543
LIABILITIES
Current LiabilitiesTradeandotherpayablesfromnon-exchangetransactions 12 48 908 64867Provision 13 8 359 7119Tradeandotherpayablesfromexchangetransactions 14 5 662 8630National Skills Fund received in advance 15 - 226
Total Liabilities 62 929 80842
NET ASSETS 124 396 55701
Funds and ReservesAdministrationreserve 1 074 562Employergrantreserve 148 105Discretionaryreserve 123 174 55034
TOTAL FuNDS AND RESERVES 124 396 55701
Fasset Annual Integrated Report 2011-2012
22 Annual Financial Statements
StAteMent oF CHAnGeS In net ASSetSFoR tHe yeAR enDeD 31 MARCH 2012
Not
es
Adm
inis
trat
ion
Res
erve
Empl
oyer
Gra
nt
Res
erve
Dis
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ry
Res
erve
una
ppro
pria
ted
surp
lus
Tota
lR
'000
R'0
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R'0
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Bal
ance
at 1
Apr
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10 4
98
156
4
1 99
8 -
42
652
Surp
lus
per S
tate
men
t of F
inan
cial
Per
form
ance
--
-13049
13049
Allocationofunappropriatedsurplus
16807
24060
(17818)
(13049)
-ExcessreservestransferredtoDiscretionary
rese
rve
(6743)
(24111)
30854
--
Bal
ance
at 3
1 M
arch
201
1 5
62
105
5
5 03
4 -
55
701
Surp
lus
per S
tate
men
t of F
inan
cial
Per
form
ance
1-
--
68695
68695
Allocationofunappropriatedsurplus
14275
43768
10652
(68695)
-ExcessreservestransferredtoDiscretionary
rese
rve
(13763)
(43725)
57488
--
Bal
ance
at 3
1 M
arch
201
2 1
074
1
48
123
174
-
124
396
An a
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(201
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s re
tain
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the
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inist
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n re
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ual t
o th
e ca
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of P
rope
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and
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tang
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ass
ets.
An a
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f R14
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) is
disc
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the
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gra
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serv
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fer t
o no
te 1
7.2
and
17.3
for d
etai
ls.
Fasset Annual Integrated Report 2011-2012
23Annual Financial Statements
CASH FloW StAteMentFoR tHe yeAR enDeD 31 MARCH 2012
2011/12 2010/11Notes R'000 R'000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating activitiesCash receipts from stakeholders 310 442 217374Levies,interestandpenaltiesreceived 2 310 284 218627Other cash receipts from stakeholders 158 (1253)
Cash paid to stakeholders, suppliers and employees (268 105) (184385)Grantsandprojectpayments (245 797) (166465)Compensation of employees (9 041) (8245)Payments to suppliers (13 267) (9675)
Cash generated from operations 16 42 337 32989Interest received 3 8 950 5887Specialprojects 15 (226) 4
Net cash inflow from operating activities 51 061 38880
CASH FLOW FROM INVESTING ACTIVITIESAcquisitionofProperty,plantandequipment 7 (761) (261)AcquisitionofIntangibleassets 8 (53) (9)
Net cash outflow from investing activities (814) (270)
Net increase in cash and cash equivalents 50 247 38610Cash and cash equivalents at beginning of year 11 132 738 94128Cash and cash equivalents at end of year 11 182 985 132738
Fasset Annual Integrated Report 2011-2012
24 Annual Financial Statements
StAteMent oF CoMpARISon oF BUDGet AnD ACtUAl AMoUntSFoR tHe yeAR enDeD 31 MARCH 2012
Not
es
App
rove
d
Ori
gina
l Bud
get
Rev
isio
ns
App
rove
d Fi
nal
Bud
get
Act
ual
Favo
urab
le
vari
ance
2011
/12
2011
/12
2011
/201
220
11/2
012
2011
/12
R'0
00R
'000
R'0
00R
'000
R'0
00
REV
ENu
ESkillsDevelopmentLevy:incomefromnon-
exchangetransactions
24.1
209185
73754
282939
308359
25420
SkillsDevelopmentLevy:penaltiesand
interestfromnon-exchangetransactions
24.2
--
-1926
1926
Inve
stmen
t inc
ome
24.3
6000
2800
8800
9095
295
Oth
er in
com
e-
--
108
108
Tota
l rev
enue
215185
76554
291739
319488
27749
EXP
ENSE
SEmployergrantandprojectexpenses
24.4
(191168)
(73392)
(264560)
(225274)
39286
Administrationexpenses
24.5
(23677)
(2659)
(26336)
(25519)
817
Tota
l exp
ense
s(214845)
(76051)
(290896)
(250793)
40103
SuR
PLu
S FO
R T
HE
YEA
R 3
40
503
8
43
68
695
67
852
Fassetdoesnotbudgetforasurplus.TheR340000shownasasurplusintheoriginalbudgetandR843000showninthefinalapprovedbudgetwasbudgetedas
capitalexpenditureofwhichR813000wasspent.
FordetailsregardingthedifferencebetweenbudgetandactualrefertoNote24.
Fasset Annual Integrated Report 2011-2012
25Annual Financial Statements
ACCoUntInG polICIeS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
1. BASIS oF pRepARAtIon
TheAnnualFinancialStatementshavebeenpreparedonthehistoricalcostbasis,exceptwhereadjustedforpresent/fairvaluesasrequiredbytherespectiveaccountingstandards.TheAnnualFinancialStatementshavebeenpreparedinaccordancewithStandardsofGenerallyRecognisedAccountingPractice(GRAP)andthePublicFinanceManagementAct(PFMA),1999(Act1of1999)asamended,includinganyinterpretationsofsuchStatementsissuedbytheAccountingStandardsBoard(ASB).
2. ReVenUe ReCoGnItIon
2.1 Revenue from non-exchange transactions
Non-exchangerevenuetransactionsresultinresourcesbeingreceivedbyFasset,usuallyinaccordancewithabindingarrangement.
WhenFassetreceivesresourcesasaresultofanon-exchangetransaction,itrecognisesanassetandrevenueintheperiodthatthearrangement becomes binding and when it is probable that Fasset will receive economic benefits or service potential and it can make a reliable measure of the resources transferred.
WheretheresourcestransferredtoFassetaresubjecttothefulfillmentofspecificconditions,itrecognisesanassetandacorrespondingliability.Asandwhentheconditionsarefulfilled,theliabilityisreducedandrevenueisrecognised.
The asset and the corresponding revenue are measured on the basis of the fair value of the asset on initial recognition.
Non-exchangerevenuetransactionsincludethereceiptoflevyincomefromtheDepartmentofHigherEducationandTraining(DHET),income from the National Skills Fund (NSF), and grants from the national government.
2.1.1 Levy income
TheaccountingpolicyfortherecognitionandmeasurementofskillsdevelopmentlevyincomeisbasedontheSkillsDevelopmentAct(SDA),ActNo97of1998,asamendedandtheSkillsDevelopmentLeviesAct(SDLA)ActNo9of1999,asamended.
Intermsofsection3(1)and3(4)oftheSDLA,1999asamended,registeredmembercompaniesofFassetpayaskillsdevelopmentlevy of 1%of the total payroll cost to the SouthAfrican Revenue Services (SARS),who collect the levies on behalf ofDHET.CompanieswithanannualpayrollcostlessthanR500000areexemptedinaccordancewithsection4(b)oftheSDLA(1999)asamended,effective1August2005.
80%ofSkillsDevelopmentLevies(SDL)arepaidovertoFasset(netofthe20%contributiontotheNSF).FassetwasnotinapositiontoverifythatSARShascollectedallpotentialskillslevyincome.
RevenueisadjustedfortransfersbetweentheSetasduetoemployerschangingSetas.Suchadjustmentsareseparatelydisclosedas inter-Seta transfers. Theamountof the inter-Setaadjustment is calculatedaccording to themost recentStandardOperatingProcedureissuedbyDHET.SDLtransfersarerecognisedonanaccrualbasiswhenitisprobablethatfutureeconomicbenefitsorservicepotentialwillflowtotheSetaandthesebenefitscanbemeasuredreliably.ThisoccurswhentheDHETmakesanallocationtoFasset,asrequiredbySection8oftheSDLA,1999asamended.
Fasset Annual Integrated Report 2011-2012
26 Annual Financial Statements
2.1.2 Interest and penalties
InterestandpenaltiesreceivedontheSDLarerecognisedontheaccrualbasis.
2.1.3 Funds allocated by the National Skills Fund for Special Projects
Funds transferred by the NSF are accounted for in the financial statements of Fasset as a liability until the related conditions are met. The liabilityisreducedbyanyprojectexpenditureincurredandrecognisedasrevenue.
Property,plantandequipmentacquiredforNSFSpecialProjectsarecapitalisedinthefinancialstatementsofFasset,asFassetcontrolssuchassetsforthedurationoftheproject.Suchassetsmayhoweveronlybedisposedofintermsofagreementandspecificwritten instructions by the NSF.
2.2 Revenue from exchange transactions
Revenuefromexchangetransactionsisrecognisedwhenitisprobablethatfutureeconomicbenefitsorservicepotentialwillflowto Fasset and these benefits can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable.
TheonlyexchangerevenuereceivedbyFassetistheinterestearnedontheinvestment.
Unconditional grants received are recognised when the amounts have been received.
2.2.1 Investment Income
Interest income is accrued on a time proportionate basis, taking into account the principal outstanding and the effective interest rate over the period to maturity.
3. GRAntS AnD pRoJeCt eXpenDItURe
Aregisteredemployermayrecoveramaximumof50%ofitstotallevypaymentasaMandatoryGrant(excludinginterestandpenalties)bycomplyingwith thecriteria inaccordancewith theSDA,1998,asamended,SetaGrantRegulations regardingmonies received and related matters.
Mandatory Grants
Thegrantexpenditureisrecognisedwhentheemployerhassubmittedanapplicationforagrantintheprescribedformwithinthelegislatedcut-offperiodandtheapplicationhasbeenapproved.Thegrantsareequivalentto50%ofthetotalleviescontributedby employer.
Discretionary Grant and Project Expenditure
FassetmayoutofthesurplusMandatory,AdministrativeorDiscretionaryleviesandinaccordancewithcriteriaasdefinedintheSetaGrantRegulationsallocatefundstoemployersandotherassociationsororganisations.Thecriteriaforallocatingfundsareapprovedby the FassetBoard.Wherenecessary it canbe requiredof interestedemployers,associationsororganisations tocomplete and submit a funding application for consideration and approval by Fasset.
ACCoUntInG polICIeS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
27Annual Financial Statements
ACCoUntInG polICIeS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
FassetallocatesDiscretionaryGrantstoemployerswhohavesubmittedanapplicationforaDiscretionaryGrantintheprescribedformwithintheagreeduponcut-offperiod.DiscretionaryGrantexpenditureisrecognisedasexpensesintheperiodinwhichitincurred, in which the conditions are met.
Project expenditure comprises:
-coststhatrelatedirectlytothespecificproject,-coststhatareattributabletoprojectactivityingeneralandcanbeallocatedtotheproject,and-suchothercostsasarespecificallychargeabletoFassetunderthetermsofthecontract.
Such costs are allocated using methods that are systematic and rational and are applied consistently to all costs having similar characteristics.
Projectexpenditureisrecognisedasexpensesintheperiodinwhichitincurred,inwhichtheconditionsaremet.
4. IRReGUlAR AnD FRUItleSS AnD WASteFUl eXpenDItURe
Irregular expendituremeans expenditure incurred in contravention of, or not in accordancewith, a requirement of any applicablelegislation,including:-ThePFMA(1999),asamended-TheSDA(1998)asamended
Fruitlessandwastefulexpendituremeansexpenditurethatwasmadeinvainandwouldhavebeenavoidedhadreasonablecarebeenexercised.
Allirregularandfruitlessandwastefulexpenditureischargedagainsttherespectiveclassofexpenseintheperiodinwhichitisincurred.
5. pRopeRty, plAnt AnD eQUIpMent
Property,plantandequipmentare statedat cost lessany subsequentaccumulateddepreciationandadjusted forany impairments.Depreciationischargedsoastowriteoffthecostofassetsovertheirestimatedusefullives,usingthestraightlinemethod.
The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.
Wherethecarryingamountofanassetisgreaterthanitsestimatedrecoverableserviceamount,itiswrittendownimmediatelytoits recoverable amount (i.e. impairment losses are recognised).
ThegainorlossondisposalofProperty,plantandequipmentisdeterminedasthedifferencebetweenthesaleproceedsandthecarrying amount and are taken into account in determining a surplus or deficit for the year.
IntheapplicationofFasset’saccountingpolicies,managementisrequiredtomakejudgments,estimatesandassumptionsaboutthe carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptionsarebasedonhistoricalexperienceandotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromthese estimates.
Fasset Annual Integrated Report 2011-2012
28 Annual Financial Statements
ACCoUntInG polICIeS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at year end, that have a significantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear.
useful lives of Property, plant and equipment
FassetreviewstheestimatedusefullivesofProperty,plantandequipmentattheendofeachannualreportingperiodforthecarryingvaluesofProperty,plantandequipment.
Management determined, consistent with the prior year, that the useful life of assets should not be limited by Fasset’s establishment.Management’sdeterminationofusefullifealsoimpactsthedeterminationoftheresidualvalueofassets.
The following useful lives are used in the calculation of depreciation
Computerequipment 3years
Office furniture and fittings 10years
Officeequipment 5years
LeaseholdImprovements over the lease term
Fassethasreviewedtheresidualvaluesusedforthepurposesofdepreciationcalculations.Thereviewdidnothighlightanyrequirementforanadjustmenttotheresidualvaluesusedinthecurrentorpriorperiods.Residualvaluesarereviewedannually.
6. IntAnGIBle ASSetS
Intangibleassetsarestatedatcostlessanysubsequentaccumulatedamortisationandadjustedforanyimpairments.Amortisationischargedso as to write off the cost of assets over their estimated useful lives, using the straight line method.
The estimated useful lives and amortisation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.
Where thecarryingamountofanasset isgreater than itsestimated recoverable serviceamount, it iswrittendown immediately to itsrecoverable amount (i.e. impairment losses are recognised).
The gain or loss on disposal of intangible assets is determined as the difference between the sale proceeds and the carrying amount and are taken into account in determining a surplus or deficit for the year.
key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at year end, that have a
Fasset Annual Integrated Report 2011-2012
29Annual Financial Statements
ACCoUntInG polICIeS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
significantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear.
useful lives of Intangible assets
Fasset reviews the estimated useful lives of Intangible assets at the end of each annual reporting period for the carrying values of Intangible assets.
The following useful life is used in the calculation of amortisation
Computer software 2years
Fassethasreviewedtheresidualvaluesusedforthepurposesofdepreciation/amortisationcalculationsinlightoftheamendeddefinitionofresidualvalue.Thereviewdidnothighlightanyrequirementforanadjustmenttotheresidualvaluesusedinthecurrentorpriorperiods.Residual values are reviewed annually.
7. leASInG
PaymentsmadeunderoperatingleasesarechargedtotheStatementofFinancialPerformanceonastraight-linebasisovertheperiodofthelease.Whenanoperatingleaseisterminatedbeforetheleaseperiodhasexpired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognisedasanexpenseintheperiodinwhichterminationtakesplace.
8. GRAntS
Mandatory Grant Payments
AliabilityisrecognisedforMandatoryGrantpaymentsoncethespecificcriteriasetoutintheSetaGrantRegulationhasbeencompliedwithby member companies and it is probable that Fasset will approve the grant application for payment. The liability is measured at estimated cashoutflowasdeterminedinaccordancewiththeSDA(1998).Thismeasurementinvolvesanestimate,basedontheamountofleviesreceived.
Discretionary Grant Payments
AliabilityisrecognisedforDiscretionaryGrantpaymentsoncethespecificcriteriasetoutintheSetaGrantRegulationandanyadditionalcriteria as approved by the Fasset Board has been complied with by member companies and it is probable that Fasset will approve the grant applicationforpayment.TheliabilityismeasuredatthenetpresentvalueoftheexpectedfuturecashoutflowasdeterminedinaccordancewiththeGRAP.Thismeasurementinvolvesanestimate,basedontheamountofleviesreceived.
Discretionary Projects
Noprovisionismadeforprojectsapprovedatyear-end,unlesstheserviceintermsofthecontracthasbeendelivered.Whereaprojecthasbeenapproved,buthasnotbeenaccruedfororprovidedfor,itisdisclosedasapprovedandallocatedforfutureprojectsinthenotestoAnnualFinancialStatements.
Fasset Annual Integrated Report 2011-2012
30 Annual Financial Statements
ACCoUntInG polICIeS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Commitments are disclosed where Fasset has, in the normal course of its operations, entered into a contractual agreement with entities related toprojectexpenseswhichareyetdueforpayment.
9. pRoVISIonS
Provisions are recognised when the Seta has a present obligation as a result of a past event and it is proable that this will result in an outflow of economic benefits that can be estimated reliably.
10. FInAnCIAl InStRUMentS
Recognition
Financialassetsandfinancial liabilitiesarerecognisedonFasset’sStatementofFinancialPositionwhenFassetbecomesaparty to thecontractual provisions of the instrument. Financial Assets
AllfinancialassetsofFassetwerecategorisedasloansandreceivables.Theclassificationdependsonthenatureandpurposeofthefinancialassets and is determined at the time of initial recognition.
Cash and cash equivalents
Cashandcashequivalentsarestatedatamortisedcost,which,duetotheirshort-termnature,closelyapproximatetheirfairvalue.
Loans and receivables
Tradereceivables, loans,andother receivables thathavefixedordeterminablepayments thatarenotquoted inanactivemarketareclassifiedas‘loansandreceivables’.Loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethodlessanyimpairment. Interest income is recognised by applying the effective interest rate.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancial asset, or, where appropriate, a shorter period.
Impairment of financial assets
Financialassetsareassessedforindicatorsofimpairmentateachyear-end.
Financialassetsareimpairedwherethereisobjectiveevidencethat,asaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionof the financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost,
Fasset Annual Integrated Report 2011-2012
31Annual Financial Statements
ACCoUntInG polICIeS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
theamountoftheimpairmentisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discounted at the original effective interest rate.
Thecarryingamountof thefinancialasset isreducedbytheimpairment lossdirectly forallfinancialassetswith theexceptionof tradereceivableswherethecarryingamountisreducedthroughtheuseofanallowanceaccount.Whenatradereceivableisuncollectible,itiswrittenoffagainsttheallowanceaccount.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainsttheallowanceaccount. Changes in the carrying amount of the allowance account are recognised in the surplus or deficit.
Financial Liabilities
AllfinancialliabilitiesofFassetwereclassifiedasotherfinancialliabilities.Theclassificationdependsonthenatureandpurposeofthefinancial liabilities and is determined at the time of initial recognition.
Other financial liabilities
Other financial liabilities are initially measured at fair value, net of transaction costs.
Otherfinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod,withinterestexpenserecognisedon an effective yield basis.
Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofafinancialliabilityandofallocatinginterestexpenseovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashpaymentsthroughtheexpectedlifeofthefinancial liability, or, where appropriate, a shorter period.
11. ReSeRVeS
NetAssetsareclassifiedbasedontherestrictionsplacedonthedistributionofmoniesreceivedinaccordancewiththeSetaGrantRegulationsasfollows:• Administrationreserve• Employergrantreserve• Discretionaryreserve• Unappropriatedsurplus
EmployerlevypaymentsaresetasideintermsoftheSDA(1998)andtheSetaGrantRegulationsforthepurposeof:
2011/12 2010/11% %
AdministrationcostsoftheSeta 10 10
Employergrantfundlevy 50 50
DiscretionaryGrantsandprojects 20 20Received by the Seta 80 80Contribution to the National Skills Fund 20 20
100 100
Fasset Annual Integrated Report 2011-2012
32 Annual Financial Statements
In addition, contributions received from public service employers in the national or provincial spheres of government may be used to fund Fasset’sadministrationcosts.
InterestandpenaltiesreceivedfromSARSaswellasinterestreceivedoninvestmentsisutilisedfordiscretionarygrantprojects.
Surplus funds in the administration and unallocated funds in the employer grant reserves are moved to the discretionary fund reserve. Provision ismadeintheadministrationreserveequaltothenetbookvalueofdepreciableassets.Provisionismadeintheemployergrantreservefornewlyregisteredmembercompanies,participatingafterthelegislativecut-offdate.
12. CoMpARAtIVe FIGUReS
Wherenecessary,comparativefigureshavebeenadjustedtoconformtochangesinpresentationinthecurrentyear.
13. tAXAtIon
Noprovisionhasbeenmadefortaxation,asFassetisexemptfromincometaxintermsofSection10oftheIncomeTaxAct,1962(Act58of1962).
14. ConSUMABleS
Consumablesonhandatthereportingdatearemeasuredatcost.Anindividualconsumablepurchaseofwhichthecostdoesnotexceed R1000isrecognised,onacquisition,insurplusordeficit.
15. eMployee BeneFItS
Terminationbenefitsarerecognisedandexpensedonlywhenthepaymentismade.
No provision has been made for retirement benefits as Fasset does not provide retirement benefits to its employees.
ACCoUntInG polICIeS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
33Annual Financial Statements
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
1. A
llo
CAtI
on
oF
SU
RplU
S F
oR
tH
e C
URR
ent
yeA
R t
o R
eSeR
VeS
Empl
oyer
Gra
nts
Rese
rve
Dis
cret
iona
ry R
eser
ve
Tota
l per
Stat
emen
t of
Fina
ncia
l Per
for-
man
ce 2
011/
2012
R'0
00
Adm
inis
trat
ion
Rese
rve
R'0
00
Man
dato
ry S
kills
Gra
nt
R'0
00
Dis
cret
iona
ry
Gra
nts
R'0
00
Spec
ial p
roje
cts
R'0
00
Proj
ects
R'0
00
Tota
l
Dis
cret
iona
ry
R'0
00
Tota
l Rev
enue
319
488
39794
193010
75663
-11021
86684
SkillsDevelopment
Levytransferfromnon-
exchangetransactions
Levytransfer
Administration(10%)
39
686
39686
--
--
-LevytransferEmployer
Grants(70%)
268
673
-
193010
75663
--
75663
SkillsDevelopmentLevy
pena
lties a
nd in
tere
st fromnon-exchange
trans
actio
ns 1
926
-
--
-1926
1926
Nat
iona
l Skil
ls Fu
nd
inco
me
- -
--
--
-Inv
estm
ent In
com
e 9
095
-
--
-9095
9095
Othe
r inc
ome
108
108
--
--
-
Tota
l Exp
ense
s 2
50 7
93
25519
149242
13314
-62718
76032
Administrationexpenses
25 5
1925519
--
--
-N
atio
nal S
kills
Fund
expenses
- -
--
--
-Employergrantsand
projectexpenses
225
274
-
149242
13314
-62718
76032
Surp
lus p
er S
tate
men
t of
Finan
cial P
erfo
rman
ce
allo
cate
d 6
8 69
5 1
4 27
5 4
3 76
8 6
2 34
9 -
(51
697)
1
0 65
2
Fasset Annual Integrated Report 2011-2012
34 Annual Financial Statements
All
oCA
tIo
n o
F S
URp
lUS
Fo
R t
He
pRI
oR
yeA
R t
o R
eSeR
VeS
Empl
oyer
Gra
nts
Rese
rve
Dis
cret
iona
ry R
eser
ve
Tota
l per
Stat
emen
t of
Fina
ncia
l Per
for-
man
ce 2
010/
2011
R'0
00
Adm
inis
trat
ion
Rese
rve
R'0
00
Man
dato
ry S
kills
Gra
nt
R'0
00
Dis
cret
iona
ry
Gra
nts
R'0
00
Spec
ial p
roje
cts
R'0
00
Proj
ects
R'0
00
Tota
l
Dis
cret
iona
ry
R'0
00
Tota
l Rev
enue
224
689
27596
135537
54225
5
7326
61556
SkillsDevelopment
Levytransferfromnon-
exchangetransactions
Levytransfer
Administration(10%)
27
534
27534
--
--
-LevytransferEmployer
Grants(70%)
189
762
-
135537
54225
--
54225
SkillsDevelopmentLevy
pena
lties a
nd in
tere
st fromnon-exchange
trans
actio
ns 1
331
-
--
-1331
1331
Nat
iona
l Skil
ls Fu
nd
inco
me
5
--
-5
-5
Inves
tmen
t Inco
me
5 9
95
--
--
5995
5995
Othe
r inc
ome
62
62
--
--
-
Tota
l Exp
ense
s 2
11 6
40
20789
111477
15261
5
64108
79374
Administrationexpenses
20
789
20789
--
--
-N
atio
nal S
kills
Fund
expenses
5
--
-5
-5
Employergrantsand
projectexpenses
190
846
-
111477
15261
-64108
79369
Surp
lus p
er S
tate
men
t of
Finan
cial P
erfo
rman
ce
allo
cate
d 1
3 04
9 6
807
2
4 06
0 3
8 96
4 -
(56
782)
(1
7 81
8)
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
35Annual Financial Statements
2. SKILLS DEVELOPMENT LEVY TRANSFER FROM NON-EXCHANGE tRAnSACtIonS
2011/12 2010/11R'000 R'000
ThetotallevytransferpertheStatementofFinancialPerformanceisasfollows:
Levytransfer:Administration 39 686 27534Leviesreceived 39 686 27534LeviesreceivedfromDHET 39 318 27195Governmentleviesreceived 482 425Inter-setatransfersin 7 (12)Inter-setatransfersout (121) (74)
Levytransfer:Employergrants 193 010 135537Leviesreceived 193 010 135537LeviesreceivedfromDHET 193 586 135957Inter-setatransfersin 37 (55)Inter-setatransfersout (613) (365)
Levytransfer:Discretionarygrants 75 663 54225Leviesreceived 75 663 54225LeviesreceivedfromDHET 75 893 54394Inter-setatransfersin 15 (22)Inter-setatransfersout (245) (147)
308 359 217296
3. InVeStMent InCoMe
2011/12 2010/11R'000 R'000
Interest incomeAccrualsonbankdeposits 145 108Bank deposits 8 950 5887
9 095 5995
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
36 Annual Financial Statements
4. otHeR InCoMe2011/12 2010/11
R'000 R'000
Otherincomecomprises:Bad debt recovered 36 20Refund received 12 -Income from attending committee meeting - 3Skills development levy refund 57 39Donationincome 3 -
108 62
5. eMployeR GRAnt AnD pRoJeCt eXpenSeS
2011/12 2010/11R'000 R'000
Mandatory grants 149 242 111477Disbursed 162 735 86986Movement in provisions and accruals (13 493) 24491
Discretionarygrants 13 314 15261Disbursed 16 390 13556Movement in provisions and accruals (3 076) 1705
Projectexpenditure 62 718 64108Disbursed 66 672 65923Movement in provisions and accruals (3 954) (1815)
225 274 190846
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
37Annual Financial Statements
6. ADMInIStRAtIon eXpenSeS
2011/12 2010/11 Notes R'000 R'000
Advertising,marketingandpromotions,communication 716 607Bad debts written off 17 85Consultancy and service provider fees 6.1 9 449 6897Cost of employment 6.2 9 093 8188Depreciation/Amortisation 296 199Entertainmentexpenses 18 17Externalauditor'sremuneration 987 1006Impairments 48 (63)Legalfees 22 -LossondisposalofProperty,plantandequipment 7 7 Maintenance, repairs and running costs 136 115Operating lease rentals 1 454 1143RemunerationtomembersoftheAccountingAuthority 286 -RemunerationtomembersoftheAuditandRiskcommittee 111 134Staff training and development 163 136Travel and subsistence 201 182
Other 2 515 2136EducationandTrainingQualityAssurance(ETQA) 293 449Insurance 281 307Internal audit fees 591 312Otheradministrationexpenses 791 704Printing 207 204Relocation costs 213 -Telephone 139 160
25 519 20789
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
38 Annual Financial Statements
6.1 Consultancy and service provider fees
ConsultancyandserviceproviderfeerelatestotheexpensesincurredinrespectoftheoutsourcedFinance,InformationTechnologymaintenance and support and Supply Chain Management function of Fasset.
6.2 Cost of employment
2011/12 2010/11 Notes R'000 R'000
Salaries and wages 8 975 8082 Basic salaries 7 999 7347 Performance awards 843 696 Temporary staff 25 96Leaveprovision 52 (57)Leavepaid 56 -Social contributions UIF 29 28SDL 89 78
9 093 8188
Averagenumberofemployees 21 21
RefertothereportbytheAccountingAuthorityfordisclosureconcerningtheemolumentsoftheChiefExecutiveOfficerandChiefOperating Officer.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
39Annual Financial Statements
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
7. pRopeRty, plAnt AnD eQUIpMent
Year ended 31 March 2012
Cost
Accumulated
depreciation
Closing carrying
amount R'000 R'000 R'000
Computerequipment 457 (283) 174Office furniture and fittings 582 (388) 194Officeequipment 963 (665) 298Leaseimprovements 433 (72) 361Balance at end of year 2 435 (1408) 1027
Year ended 31 March 2011
Cost
Accumulated
depreciation
Closing carrying
amount R'000 R'000 R'000
Computerequipment 559 (425) 134Office furniture and fittings 560 (368) 192Officeequipment 886 (658) 228Balance at end of year 2 005 (1451) 554
Movement Summary
31 March 2012
Carrying amount
2011 Additions Disposals
Depreciation
charge
Carrying amount
2012R'000 R'000 R'000 R'000 R'000
Computerequipment 134 128 - (88) 174 Office furniture and fittings 192 52 (2) (48) 194 Officeequipment 228 148 (3) (75) 298 Leaseholdimprovements - 433 - (72) 361 Balance at end of year 554 761 (5) (283) 1 027
Movement Summary
31 March 2011
Carrying amount
2010 Additions Disposals
Depreciation
charge
Carrying amount
2011 R'000 R'000 R'000 R'000 R'000
Computerequipment 131 76 (1) (72) 134Office furniture and fittings 241 6 (5) (50) 192Officeequipment 112 179 (1) (62) 228Balance at end of year 484 261 (7) (184) 554
Temporarily idle assets and assets not in useProperty,plantandequipmentthatwereidleorhadbeenretiredfromusehadanetcarryingvalueofRnil(2011:R1000)
Fully depreciated assets still in use2011/2012 2010/2011
Gross carrying value R'000 R'000
Computerequipment 26 40Office furniture and fittings 62 22Officeequipment 35 133Balance at end of year 123 195
Fasset Annual Integrated Report 2011-2012
40 Annual Financial Statements
8. IntAnGIBle ASSetS
Year ended 31 March 2012
Cost
Accumulated
amortisation/
impairment
Closing carrying
amount R'000 R'000 R'000
Computer software 103 (56) 47 Balance at end of year 103 (56) 47
Year ended 31 March 2011
Cost
Accumulated
amortisation/
impairment
Closing carrying
amount R'000 R'000 R'000
Computer software 151 (143) 8Balance at end of year 151 (143) 8
Movement summary
31 March 2012
Carrying amount
2011 Additions Disposals Amortisation
Carrying amount
2012R'000 R'000 R'000 R'000 R'000
Computer software 8 53 (1) (13) 47 Balance at end of year 8 53 (1) (13) 47
Movement summary
31 March 2011
Carrying amount
2010 Additions Disposals Amortisation
Carrying amount
2011 R'000 R'000 R'000 R'000 R'000
Computer software 14 9 - (15) 8Balance at end of year 14 9 - (15) 8
Temporarily idle assets and assets not in useIntangibleassetsthatwereidleorhadbeenretiredfromusehadanetcarryingvalueofRnil(2010:Rnil)
Fully depreciated assets still in use
2011/2012 2010/2011Gross carrying value R'000 R'000
Computer software 43 132
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
41Annual Financial Statements
9. ACCOUNTS RECEIVABLE FROM NON - EXCHANGE TRANSACTIONS
2011/12 2010/11 Notes R'000 R'000
Inter-setadebtors 23.2 133 85Employerreceivables 9.1 2 560 691Impairments 9.1 (74) (26)
2 619 750
9.1 Employer Receivables2011/12 2010/11
R'000 R'000
Overpayment to employers 2 560 691Impairments (74) (26)Effectofadjustmentsonaffectedemployers 2 486 665
R2560000(2011:R691000)wasrecognisedasareceivablerelatingtotheoverpaymenttotheemployersinearlierperiods,asaresultofinaccurateinformationreceived,andisbasedontheamountofsuchgrantoverpayments.AnamountofR74000(2011:R26000)wasprovidedforasdoubtfuldebts.
Fassetrefundsamountstoemployersintheformofgrants,basedoninformationfromDHET.Whereinformationisretrospectivelyamended,itmayresultingrantsthathavebeenpaidtocertainemployersthatareinexcessoftheamountFassetispermittedtohavegrantedtoemployers.Areceivablerelatingtotheoverpaymenttotheemployerinearlierperiodsisraisedattheamountofsuch grant overpayment, net of bad debts and provision for irrecoverable amounts.
Thecarryingamountofaccountsreceivableisnetofallowanceforanydoubtfuldebt,estimatedbytheAccountingAuthoritybasedonpriorexperience.Thecarryingamountoftheseassetsapproximatestheirfairvalue.
10. ACCOUNTS RECEIVABLE - OTHER
2011/12 2010/11R'000 R'000
Deposits 193 190Interest receivable 145 108Prepaidexpenses 279 2017Service provider fees receivable - 141
617 2456
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
42 Annual Financial Statements
11. CASH AnD CASH eQUIVAlentS
2011/12 2010/11R'000 R'000
Cash at bank and in hand 26 212 720Cash at bank 26 212 719Cash in hand - 1
Shorttermfixeddeposits 156 773 132018Cashandcashequivalentsatendofyear 182 985 132738
AsrequiredinTreasuryRegulation31.2,NationalTreasuryapprovedthebankswherethebankaccountsareheld.Theweightedaverageinterestrateonshorttermbankdepositswas5.3%(2011:5.8%).
AsFassetwasexemptedbytheNationalTreasuryfromtherequirementofTreasuryRegulation31.3toinvestsurplusfundswiththeCorporationforPublicDeposits,surplusfundswereinvestedinlinewithaninvestmentpolicyasrequiredbyTreasuryRegulation31.3.5.
CashandcashequivalentscomprisecashheldbyFassetandshort-termbankdepositswithanoriginalmaturityofthreemonthsorless.Thecarryingamountoftheseassetsapproximatestheirfairvalues.
12. TRADE AND OTHER PAYABLES FROM NON - EXCHANGE TRANSACTIONS
2011/12 2010/11 Notes R'000 R'000
Skillsdevelopmentgrantspayable-mandatory 32 507 45875Skillsdevelopmentgrantspayable-discretionary 12 140 15249Inter-setapayables 23.2 541 72Employerpayables 2 839 1093LevyCreditors 881 2578
48 908 64867
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
43Annual Financial Statements
13. pRoVISIon
13.1 Provision for levies incorrectly received
2011/12 2010/11R'000 R'000
Opening balance 7 119 5 879Change in estimate 253 166Addition 987 1 074Closing balance 8 359 7 119
AnamountofR8359000(2011:R7119000)relatestoleviesincorrectlycontributedbyemployers,andpaidoverbySARSandDHET,afterbeingexemptedfromcontributingSDLduetolegislationchangeswhichcameintoeffectfrom1August2005.AsSARScollectstheleviesonbehalfofDHET,theresponsibilitytorefundtheleviestotheemployersremainswithSARS.
14. tRADe AnD otHeR pAyABleS FRoM eXCHAnGe tRAnSACtIonS
2011/12 2010/11R'000 R'000
Projectcreditors 4 136 8090Sundry payables 1 526 540
Trade payables 582 21Other accruals 496 123Employeeleaveaccrual 448 396
5 662 8630
Thecarryingamountofaccountandotherpayablesapproximatetheirfairvalueduetotherelativelyshort-termmaturityofthesefinancial liabilities.
15. nAtIonAl SkIllS FUnD: SpeCIAl pRoJeCtS
2011/12 2010/11R'000 R'000
Opening balance 226 222Interest received 2 9Utilisedandrecognisedasrevenue-conditionsmet - (5)Bonani/ThuthukaProject - (5)RepaidtoNSF(closureofprojects) (228) -
Closing balance - 226
R228000wasrefundedtotheNationalSkillsFundon31July2011.TheprojectwascompletedinMarch2011,howeverthefinalclosureandprojectsign-offwasonlyfinalisedbyDHETinJuly2011.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
44 Annual Financial Statements
16. ReConCIlIAtIon oF SURplUS to net CASH GeneRAteD FRoM opeRAtIonS
2011/12 2010/11R'000 R'000
Surplus as per Statement of Financial Performance 68 695 13049Adjustedfornon-cashitems:Depreciation/Amortisation 296 199LossondisposalofProperty,plantandequipment 7 7 Bad debts written off 17 85Impairments 48 (63)Specialprojectincomerecognised - -
AdjustedforitemsseparatelydisclosedInvestment Income (9 095) (5995)
Adjustedforworkingcapitalchanges:Increaseinreceivablesfromnonexchangetransactions (1 934) (164)Decrease/(Increase)inreceivables-other 1 984 (1151)Decrease/(Increase)inconsumables 7 (7) (Decrease)/Increaseinpayablesfromnon-exchangetransactions (15 960) 28401Decreaseinpayablesfromexchangetransactions (2 968) (2612)Increase in provision 1 240 1240
Cash generated from operations 42 337 32989
17. ContInGenCIeS
17.1 Surplus Funds
IntermsofthePFMA(1999),asamended,allsurplusfundsasatyear-endmaybeforfeitedtoNationalTreasuryshouldanapplicationforretentionofsurplusfundsbedenied.WehavesubmittedanapplicationtoNationalTreasurythroughDHETfortheretentionofsurplusfunds.AsinthepreviousyearFassetexpectsthatNationalTreasurywillapprovetheretentionofsurplusfunds.
17.2 First time employer registrations
TheSkillsDevelopmentlegislationallowsanemployer,registeringforthefirsttime,6monthstosubmitanapplicationforaMandatoryGrant.
Atthereportingdateitisestimatedthat,asaresult,additionalMandatoryGrantexpenditureofR148000(2010/11R105000)willbepayable. The amount is contingent on the number of submission received and approved.
17.3 New scheme year levies received
Atthereportingdatelevieswerereceivedinrespectofthenewschemeyear,forwhich,theSkillsDevelopmentlegislationallowsanemployeruntil30June2012tosubmitanapplicationforaMandatoryGrant.
Atthereportingdateitisestimated,asaresult,thatadditionalmandatorygrantexpenditureofR1643(2010/11R2400)willbepayable.The amount is contingent on the number of submission received and approved.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
45Annual Financial Statements
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
18. C
oM
MIt
Men
tS
18.1
Dis
cret
iona
ry re
serv
e
OfthebalanceofR123174000(2011:R55034000)availableintheDiscretionaryreserveattheendofMarch2012.Thefullbalancehasbeenapprovedand
allocatedforfutureprojectsandskillsprioritiesassetoutbelow.OftheallocatedbalanceofR123174000,R50417000hasbeencontracted.Amountsforexpenses
thathavealreadybeenincurred,andthereforeincludedingrantexpensesintheStatementofFinancialPerformance,arealsoindicated.Arequestfortheaccumulation
ofthesefundshasbeensubmittedtoNationalTreasurythroughDHET.
NSD
S
Indi
cato
rP
roje
ct N
ame
Ope
ning
bal
-
ance
201
0/11
App
rove
d by
Acc
ount
ing
Aut
hori
tyu
tilis
ed
Ope
ning
bal
-
ance
201
1/12
App
rove
d by
Acc
ount
ing
Aut
hori
tyu
tilis
edTo
tal
Com
mit
-
men
tsR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00R
'000
R'0
00
NSD
S I
2.8
DebtCollection
Learnership*
161
(4)
(157)
--
--
-Su
b-to
tal y
ear 4
Pro
ject
Fund
161
(4
) (1
57)
- -
- -
-
NSD
S II
4.2
Thut
huka
Sm
all P
ract
ices
CTAWorkReadiness
Program*
1052
(587)
(465)
--
-Su
b-to
tal y
ear 6
Pro
ject
Fund
1052
(587)
(465)
--
--
-
Fasset Annual Integrated Report 2011-2012
46 Annual Financial Statements
4.2
ThuthukaFull-TimeCTA*
1272
(1272)
--
--
--
Sub-
tota
l yea
r 8 P
roje
ct
Fund
1 2
72
(1 2
72)
- -
- -
- -
4.2
Fram
ewor
k fo
r peo
ple
with
disabilities*
145
-(73)
72
(72)
--
-2.
7Abet*
55
-(55)
--
--
-5.
3QualityAssurance
Interventions*
198
(141)
(57)
--
--
-1.
1Re
sear
ch (S
ecto
r Ski
lls
Plan)*
95
-(95)
--
--
-4.
2Pagamani1*
34
(34)
--
--
--
4.2
ThuthukaRepeatQEPartI*
2571
-(2161)
410
(368)
(42)
--
Sub-
tota
l yea
r 9 P
roje
ct
Fund
3 0
98
(175
) (2
441
) 4
82
(440
) (4
2)
- -
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
NSD
S
Indi
cato
rP
roje
ct N
ame
Ope
ning
bal
-
ance
201
0/11
App
rove
d by
Acc
ount
ing
Aut
hori
tyu
tilis
ed
Ope
ning
bal
-
ance
201
1/12
App
rove
d by
Acc
ount
ing
Aut
hori
tyu
tilis
edTo
tal
Com
mit
-
men
tsR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00R
'000
R'0
00
Fasset Annual Integrated Report 2011-2012
47Annual Financial Statements
NSD
S
Indi
cato
rPr
ojec
t Nam
e
Ope
ning
bal
-
ance
201
0/11
App
rove
d by
Acc
ount
ing
Aut
horit
yu
tilis
ed
Ope
ning
bal
-
ance
201
1/12
App
rove
d by
Acc
ount
ing
Aut
horit
yu
tilis
edTo
tal
Com
mit-
men
tsR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00R
'000
R'0
00
6.2
StrategicMarketing*
335
(220)
(115)
--
--
-4.
2LifeLongLearning*
247
-(247)
--
--
-2.
8LearnershipCashgrant*
5007
(5787)
780
--
--
-5.
3St
rate
gic
Partn
ersh
ip F
undi
ng3986
-(126)
3860
-(19)
3841
-4.
2SMMEIntervention-Fasset
SkillsAdvisors*
693
-(693)
--
--
-1.
1ResearchLearnershipsand
LearnershipsDevelopment
1346
--
1346
-(340)
1006
-2.
7Abet*
450
(236)
(214)
--
--
-1.
1Research(SectorSkillsPlan)*
180
-(180)
--
--
-4.
2IRBA2010PPESupport*
836
(31)
(805)
--
--
-4.
2Bonani5WorkReadiness
Program*
17984
(11)
(17973)
--
--
-4.
2Pakhamani2AAT*
1793
-(1769)
24
(24)
--
-4.
2Thusanani4WorkReadiness
Program*
3557
-(3542)
15
-(15)
--
Sub-
tota
l yea
r 10
Proj
ect
Fund
36
414
(6 2
85)
(24
884)
5
245
(2
4)
(374
) 4
847
-
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
48 Annual Financial Statements
2.2
SMMEPilotGrant*
-2000
(65)
1935
(1935)
--
-4.
2SMMEIntervention-Fasset
SkillsAdvisors*
-1800
(664)
1136
(1136)
--
-4.
2LifelongLearning*
-10909
(8397)
2512
-(2512)
--
2.8
LearnershipCashgrant*
-17635
(13914)
3721
(3072)
(649)
--
6.2
StrategicMarketing*
-2786
(2249)
537
(181)
(356)
--
1.1
AnnualResearch
-1350
(449)
901
-(860)
41
41
4.1
AssessorModeratorGrant*
-300
(120)
180
(180)
--
-4.
1TaxationLearnership
-1500
-1500
-(234)
1266
-4.
1LiteracyandNumeracy
Research*
-100
(100)
--
--
-4.
2Bonani6WorkReadiness
Program*
-23308
(8016)
15292
(9)
(15283)
--
4.2
Thusanani5WorkReadiness
Prog
ram
-5039
(1566)
3473
-(3351)
122
88
4.2
Schimatus*
-1459
(620)
839
(27)
(812)
--
4.2
IRBAPPEsupportprogram*
-855
(1)
854
(36)
(818)
--
4.2
ThuthukaRepeatQE
2011/2012
-4318
-4318
-(3687)
631
604
4.2
StrategicCashGrant*
-1600
-1600
(1600)
--
-4.
2DevelopmentProjects*
-10509
-10509
(10509)
--
-Su
b-to
tal y
ear 1
1 Pr
ojec
t
Fund
- 8
5 46
8 (3
6 16
1)
49
307
(18
685)
(2
8 56
2)
2 0
60
733
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
NSD
S
Indi
cato
rPr
ojec
t Nam
e
Ope
ning
bal
-
ance
201
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rove
d by
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ount
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horit
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ning
bal
-
ance
201
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rove
d by
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ount
ing
Aut
horit
yu
tilis
edTo
tal
Com
mit-
men
tsR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00R
'000
R'0
00
Fasset Annual Integrated Report 2011-2012
49Annual Financial Statements
NSD
S
Indi
cato
rPr
ojec
t Nam
e
Ope
ning
bal
-
ance
201
0/11
App
rove
d by
Acc
ount
ing
Aut
horit
yu
tilis
ed
Ope
ning
bal
-
ance
201
1/12
App
rove
d by
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ount
ing
Aut
horit
yu
tilis
edTo
tal
Com
mit-
men
tsR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00R
'000
R'0
00
NSD
S III
4.6.
2EmployerGrantSupport
Prog
ram
me
--
--
350
(115)
235
-4.
8.1
Stra
tegi
c M
arke
ting
--
--
2921
(2267)
654
654
9.16
&
8.12
Assessor/ModeratorGrant*
--
--
64
(64)
--
4.2.
1LearnershipCashGrant*
--
--
6435
(6435)
--
4.4.
1 &
4.2.
1
ProjectsImpactStudy
--
--
218
(98)
120
119
4.6.
2SMMEPilotGrant*
--
--
--
--
4.1.
1AnnualResearch
--
--
940
-940
940
4.2.
1LifelongLearning
--
--
9500
(8464)
1036
1036
4.4.
1Th
usan
ani 6
--
--
9060
(2615)
6445
6446
4.4.
1Bo
nani
7-
--
-35456
(7522)
27934
22315
4.4.
1Ith
emba
Trai
ning
Pro
gram
me
--
--
7697
(2275)
5422
5382
4.4.
1Amathuba
--
--
2813
(1141)
1672
1619
4.4.
1RhodesBACProgramme
--
--
6182
(1362)
4820
4766
4.4.
1Schimatus2011
--
--
2349
(919)
1430
1384
4.4.
1BostonLeRumoProject
--
--
1257
(460)
797
757
4.4.
1IRBASupportProgramme
--
--
1015
-1015
960
4.4.
1S&TUkuthembaProject
--
--
3361
-3361
3306
4.4.
1DevelopmentProjectsInitial
Supp
ort S
ervic
es
--
--
5
(3)
2
-
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
50 Annual Financial Statements
4.4.
1Schimatus2013
--
--
3446
-3446
-4.
4.1
ThuthukaRepeatQEPartII
--
--
835
-835
-4.
4.1
ThuthukaRepeatQEPartI
--
--
10001
-10001
-4.
2.1
NSFASBursaries
--
--
46102
-46102
-Su
b-to
tal y
ear 1
2 Pr
ojec
t
Fund
- -
- -
150
007
(3
3 74
0)
116
267
4
9 68
4
Tota
l Pro
ject
exp
endi
ture
41
997
77
145
(64
108)
5
5 03
4 1
30 8
58
(62
718)
1
23 1
74
50
417
*Pro
ject
s cl
osed
dur
ing
the
year
ThedifferenceintheNSDStargetnumbersbetween2010/11and2011/12isduetothechangesintheNSDSstrategy.Alltheopenprojectshavebeenrealignedto
therelevantNSDSIIItargets.
Am
ount
s di
sclo
sed
in th
e ap
prov
ed b
y A
ccou
ntin
g A
utho
rity
colu
mn
shou
ld b
e re
ad a
s fo
llow
s:ThepositiveamountsrepresentsneworadditionalapprovalsmadebytheAccountingAuthority.Thenegativeamountsrepresentstransfersbacktothesurplusfundsdue
tosavingsontheproject.
TheBoardstrategicsessionsheldannually,isusedtodeterminetheallocationofFasset’savailablesurplusfunds.TheallocationislinkedtotheSeta’sstrategicobjectives.
Fasseteithermanagestheprojectinternallyorappointsserviceproviderstomeetitsobjectives.Theappointmentoftheserviceprovidersfollowstheprocurementprocess,
dependingonthevalueeitherthroughatenderorthreequoteprocess.CommitmentsaredisclosedwhereFassethas,inthenormalcourseofitsoperations,enteredinto
acontractualagreementwithentitiesrelatedtoprojectexpenseswhicharenotyetdueforpayment.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
NSD
S
Indi
cato
rPr
ojec
t Nam
e
Ope
ning
bal
-
ance
201
0/11
App
rove
d by
Acc
ount
ing
Aut
horit
yu
tilis
ed
Ope
ning
bal
-
ance
201
1/12
App
rove
d by
Acc
ount
ing
Aut
horit
yu
tilis
edTo
tal
Com
mit-
men
tsR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00R
'000
R'0
00
Fasset Annual Integrated Report 2011-2012
51Annual Financial Statements
18.2 Operating Leases
Totaloffutureminimumleasepaymentsundernon-cancelableleases:
2011/12 2010/11R'000 R'000
Not later than one year 1 221 946Laterthanoneyearandnotlaterthanfiveyears 4 884 4482
6 105 5428
The operating lease relates to building premises used for office accommodation. Fasset entered into a new lease agreement on 1June2011.Fassetwillleasethecurrentpremisesuntil31March2016.AdepositofR75221waspaidoninceptionofthelease which is refunded upon termination of the lease. The deposit amount will be reduced by any outstanding costs and will accrue interestbasedonprimelessfivepercentagepointperannum.Therentescalatesannuallyon1Aprilby9%.
19. MAteRIAl loSSeS tHRoUGH CRIMInAl ConDUCt, IRReGUlAR, FRUItleSS AnD WASteFUl eXpenDItURe
To thebestofourknowledge,nomaterial losses throughcriminalconductor irregular, fruitlessandwastefulexpenditurewereincurredduringtheyearended31March2012.
20. eVentS AFteR RepoRtInG DAte
None
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
52 Annual Financial Statements
21. FInAnCIAl InStRUMentS
InthecourseofFassetoperationsitisexposedtointerestrate,credit,liquidityandmarketrisk.FassethasdevelopedacomprehensiveriskstrategyintermsofTR28.1inordertomonitorandcontroltheserisks.Theriskmanagementprocessrelatingtoeachoftheserisks is discussed under the headings below.
Interest rate risk
Fasset manages its interest rate risk by effectively investing Fasset surplus cash in term deposits with different financial institutions accordingtoFasset’sinvestmentpolicy.
Fasset’sexposuretocashflowinterestrateriskandtheeffectiveinterestratesonfinancialinstrumentsatreportingdateareasfollows:
Floating Rate Non-Interest Bearing
Amount
R'000
Effective
interest rate
Amount
R'000
Total
R'000
Year ended 31 March 2012 Assets
Cash 182985 5,3% - 182 985 Accountsreceivable-other - 617 617
Total financial assets 182985 617 183 602 Liabilities Tradeandotherpayablesfromexchangetransactions
(5662) (5 662)
Total financial liabilities - - (5662) (5 662)
Year ended 31 March 2011 Assets
Cash 132737 5,8% 1 132 738 Accountsreceivable-other - 2456 2 456
Total financial assets 132737 2457 135 194 Liabilities Tradeandotherpayablesfromexchangetransactions
(8630) (8 630)
Total financial liabilities - - (8630) (8 630)
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
53Annual Financial Statements
Credit Risk
Financialassets,whichpotentiallysubjectFassettotheriskofnon-performancebycounterpartiesandtherebysubjecttocreditconcentrationsofcreditrisk,consistmainlyofcashandcashequivalents,investmentsandaccountsreceivable.
Fasset limits its treasurycounter-partyexposurebyonlydealingwithwell-establishedfinancial institutionsapprovedbyNationalTreasury.Fasset’sexposureiscontinuouslymonitoredbytheAccountingAuthority.
Credit risk with respect to levy paying employers is limited due to the nature of the income received. Fasset does not have any materialexposure toanyindividualorcounter-party.Fasset’sconcentrationofcredit risk is limited to theindustry (FinancialandAccountingServices)inwhichFassetoperates.Noeventsoccurredintheindustry(FinancialandAccountingServices)duringthefinancialyearthatmayhaveanimpactontheaccountsreceivablethathasnotbeenadequatelyprovidedfor.Accountsreceivablearepresentednetofallowancefordoubtfuldebt.Fassetisexposedtoaconcentrationofcreditrisk,assignificantamountsareowedbySARSandDHET.ThisconcentrationofriskislimitedasSARSandDHETaregovernmententitieswithsoundreputation.
The ageing of other receivables from exchange transactions:
2011/12 2010/11
Gross Impairment Gross Impairment
Not past due 617 - 2456 -Pastdue1-30days - - - -Pastdue31-120days - - - -Pastdue120-365days - - - -More than one year - - - -
The ageing of cash and cash equivalents:
2011/12 2010/11
Gross Impairment Gross Impairment
Not past due 182985 - 132738 -Pastdue0-30days - - - -Pastdue31-120days - - - -Pastdue120-365days - - - -More than one year - - - -
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
54 Annual Financial StatementsLi
quid
ity
risk
Fassetmanagesliquidityriskthroughpropermanagementofworkingcapital,capitalexpenditureandactualvsforecastedcashflowsanditscashmanagementpolicy.
Adequatereservesandliquidresourcesaremaintained.
2011
/12
Carr
ying
Am
ount
Cont
ract
ual
Cash
Flo
ws
6 m
onth
s or
less
6 - 1
2 m
onth
s1
- 2 y
ears
Mor
e th
an 2
year
s
TradeandotherPayablesfromexchange
trans
actio
ns(5662)
(5662)
(5662)
--
-
2010
/11
Carr
ying
Am
ount
Cont
ract
ual
Cash
Flo
ws
6 m
onth
s or
less
6 - 1
2 m
onth
s1
- 2 y
ears
Mor
e th
an 2
year
s
TradeandotherPayablesfromexchange
trans
actio
ns(8630)
(8630)
(8607)
(23)
--
Mar
ket r
isk
Fassetisexposedtofluctuationsintheemploymentmarket,forexample,suddenincreasesinunemploymentandchangesinthewagerates.Nosignificanteventsoccurred
duringtheyearinthemarketthatFassetisawareof.Thereareadequateproceduresinplacetoaddresschangesinthemarketwhennecessary.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
55Annual Financial Statements
22. neW ACCoUntInG pRonoUnCeMentS
Atthedateofauthorisationofthesefinancialstatements,thereareStandardsandInterpretationsinissuebutnotyeteffective.
Effectivedate,commencing on orafter:
GRAP21 ImpairmentofNon-cash-generatingAssets 1April2012GRAP23 RevenuefromNon-exchangeTransactions(TaxesandTransfers) 1April2012GRAP24 Presentation of Budget Information in Financial Statements 1April2012GRAP25 EmployeeBenefits 1April2012GRAP26 ImpairmentofCash-generatingAssets 1April2012GRAP103* HeritageAssets 1April2012GRAP104 Financial Instruments 1April2012GRAP18* Segment Reporting NotyetEffectiveGRAP20 Related party NotyetEffectiveGRAP105* TransferofFunctionbetweenEntitiesUnderCommonControl NotyetEffectiveGRAP106* TransferofFunctionbetweenEntitiesNotUnderCommonControl NotyetEffectiveGRAP107* Mergers NotyetEffective
*TheseStandardsandInterpretationsarenotapplicabletoFassetandwillnothaveanimpactonfuturefinancialstatements.
An entity shall apply Standards ofGRAP for Annual Financial Statements covering periods beginning on or after a date to bedeterminedbytheMinisterofFinanceinaregulationtobepublishedinaccordancewithsection91(1)(b)ofthePFMA. GRAP23hasbeenusedtoformulateouraccountingpolicy.
GRAP 20
GRAP20:RelatedParty.ThisstandardprescribesthedisclosureofinformationrelevanttodrawattentiontothepossibilitythatFasset’sfinancialpositionandsurplus/deficitmayhavebeenaffectedbytheexistenceofrelatedparties.Itisnotexpectedthatthisstandardwill significantly impact future disclosures.
GRAP 21
GRAP21:ImpairmentofNon-cashGeneratingAssets.Thisstandardprescribestheaccountingtreatmentfortheimpairmentofnon-cashgeneratingassetsanddoesnotsignificantlydifferfromIAS36exceptforsometerminologydifferences.Itisnotexpectedthatthisstandard will significantly impact future disclosures.
GRAP 23
GRAP23:Revenue fromNon-exchangeTransactions (TaxesandTransfers).Thestandardprescribes requirements for thefinancialreportingofrevenuearisingfromnon-exchangetransactions.Accountingpolicieshavebeenamendedtoclearlydistinguishbetweenexchange and non exchange transactions.It is not expected that the initial applicationwill significantly impact Fasset’s financialstatements.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
56 Annual Financial Statements
GRAP 24
GRAP24:PresentationofBudgetInformationinFinancialStatements.Thestandardprescribesthepresentationofacomparisonofbudgetand actual amounts in the financial statements of entities that are publicly accountable for the use of their funds. The presentation may be in the form of an additional financial statement or additional budget columns in their financial statements. The standard becoming effective is not expectedtosignificantlyimpactfuturedisclosuressinceFassethasappliedtheprinciplesoutlinedinGRAP24toinformourcurrentdisclosure.
GRAP 25
GRAP25:EmployeeBenefits.Thisstandardprescribestheaccountingtreatmentforemployeebenefits.Thechangesprescribedfromthecurrentapplicablestandardrelatemainlytotheaccountingrequirementsofdefinedbenefitplansandassuchisnotexpectedtosignificantlyimpact the current accounting policies or disclosures.
GRAP 26
GRAP26:ImpairmentofCashGeneratingAssets.ThisstandardprescribestheaccountingtreatmentfortheimpairmentofcashgeneratingassetsanddoesnotsignificantlydifferfromIAS36.ItisnotexpectedthatthisstandardwillsignificantlyimpactfuturedisclosuresduetoFassethaving no cash generating assets.
GRAP 104
GRAP104:FinancialInstruments.Thisstandardprescribesrecognition,measurement,presentationanddisclosurerequirementsforfinancialinstrumentsandmakessignificantmodificationstotheprinciplesinthepreviousstandardsappliedinorderto:• simplifytherecognition,measurementanddisclosureoffinancialinstruments,and• accommodatethetypesoffinancialinstrumentsenteredintointhepublicsector.
ThedefinitionsofthevariouscategoriesoffinancialinstrumentsinIAS39havebeenstreamlinedandreplacedwhichwillrequireFassettochangeFasset’saccountingpolicyaccordingly.
ThefollowingdisclosuresrequiredunderIASareencouragedbutnotrequired:• Thedisclosureoffairvaluesforfinancialinstruments.• Certaindisclosuresabouttheuseofthefairvalueusingthethreetieredhierarchy.• Amarketsensitivityanalysis.
Itisnotexpectedthatthisstandardwillsignificantlyimpactfuturedisclosures.
23. RelAteD pARty tRAnSACtIonS
23.1 Transactions with the controlling entity
FassetiscontrolledbyDHET.DHETiscontrolledbytheMinisterofHigherEducationandTraining.ThereweretransactionsrelatingtorevenuewithDHETrefertonote2.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
57Annual Financial Statements
23.2 Transactions with entities under common control
ByvirtueofthefactthatFassetisaNationalPublicEntityrelatedtootherentitiesanddepartmentsintheNationalsphereofgovernmentitisconsideredrelatedtoTelkom,Eskom,SouthAfricanAirways,otherSetasandtheNSF.Thetransactionsareconsistentwithnormaloperatingrelationshipsbetweentheentities,andareundertakenontermsandconditionsthatarenormalforsuchtransactions.WherethereweretransactionsandbalancesarisingduetothemovementoffundsbetweenentitiesunderthecommoncontrolofDHET,theseamountsaredisclosedbelow.
2011/12
R'000
2010/11
R'000
Amount of the
transaction
Amount
receivable/
(payable)
Amount of the
transaction
Amount
receivable/
(payable)
Receivables 59 133 (87) 85Interseta* 59 133 (92) 85BANKSeta 4 5 (1) 1CATSeta 11 11 - -FOODBEV 22 22 - -SASSeta 11 11 - -SERVICES 12 84 (103) 72W&RSeta (1) - 12 12
Other - - 5 -National Skills Fund - - 5 -
Payables (982) (541) (591) (298)Interseta* 982 541 586 72AGRISeta 8 - - -BANKSeta 475 267 398 6 CATSeta (8) - 41 24CETA 7 - 26 -CHIETA 14 14 - -FOODBEV 72 72 - -FP&MSeta 5 5 - -HWSeta 16 - - -INSeta 207 10 14 6 MICT - - 33 33MQA - - 10 -MERSeta 73 73 - -SASSeta 86 86 42 -SERVICES 11 14 21 3TETA 16 - - -W&RSeta - - 1 -
Other - - 5 226National Skills Fund - - 5 226
Total (923) (408) (678) (213)
*NotethatrelatingtoSetatransferthattheamountofthetransaction,whereapplicable,includesinterestandpenaltiestransferredtoorfrom the Seta.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
58 Annual Financial Statements
23.3 Remuneration of key Management
ThekeymanagementpersonneloftheSetaare:themembersoftheAccountingAuthorityandthemembersoftheseniormanagementgroup.
TheAccountingAuthorityconsistsofmembersappointedintermsoftheConstitution.Remunerationispaidtomembersortotheirnominating organisations. The aggregate remuneration of members of the Accounting Authority and the number of membersreceivingremunerationwithinthiscategory,are:
2011/12 2010/11R'000 R'000
Aggregateremuneration 295 20Number of persons 14 2
The seniormanagementgroup consists of theSeta’sCEOandCOO. Theaggregate remunerationofmembers of the seniormanagementgroupandthenumberofmanagersreceivingremunerationwithinthiscategoryare:
2011/12 2010/11R'000 R'000
Aggregateremuneration 2 593 2675Number of persons 2 2
RefertothereportbytheAccountingAuthorityfordetaildisclosureconcerningtheemolumentsoftheCEO,COOandAccountingAuthoritymembers. Refer to the report by theAudit and Risk committee for detailed disclosure concerning the emoluments ofmembersoftheAccountingAuthoritywhoaremembersoftheAuditandRiskcommittee.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
59Annual Financial Statements23
.4 T
rans
acti
ons
wit
h ot
her r
elat
ed p
arti
es
Fass
et h
as, i
n th
e no
rmal
cou
rse o
f its
oper
atio
ns, e
nter
ed in
to c
erta
in tr
ansa
ctio
ns w
ith e
ntiti
es w
hich
had
an
appo
inte
d re
pres
enta
tive
serv
ing
on th
e Fa
sset
AccountingAuthority.
2011
/12
R'0
00
2010
/11
R'0
00
Rel
ated
par
tyN
atur
e of
rela
tion
ship
Tran
sact
ion
type
Am
ount
of t
he
tran
sact
ion
Am
ount
rece
ivab
le/
(pay
able
)
Am
ount
of t
he
tran
sact
ion
Am
ount
rece
ivab
le/
(pay
able
)
ACCASouthAfrica
DaisyKopolo
Boar
d co
mm
ittees
fee
21
- -
-AngloOperationsLtd
Mar
yann
e Tro
llope
DiscretionaryGrants
- -
816
(737)
Basa
man
dla
Con
sultin
gBo
ngan
i Mat
hibe
laBo
ard
com
mitte
es fe
e 2
1 (2
)-
-
Deloitte
TsakaniMaluleke*
Discretionarygrantsand
projects
2 2
97
(1 6
50)
2194
(2183)
Con
sulta
ncy
and
othe
r se
rvic
e pr
ovid
er fe
es 9
551
(3
38)
6855
141
Ernst&Young
Sesh
ni S
amue
lDiscretionaryGrants
1 2
20
(1 2
20)
--
IndustrialDevelopment
Cor
pora
tion
HolgerFischer
DiscretionaryGrants
1 1
34
(985
)834
(752)
Boar
d co
mm
ittees
fee
22
- -
-InstituteofInternalAuditors
(IIA)
Bill
Shel
lard
DiscretionaryGrants
- -
10
( 6)
KPMG
HeidiVolschenk
DiscretionaryGrants
- -
1745
(1711)
MBSAccountingServices
CC
Shirl
ey O
lsen
DiscretionaryGrants
- -
54
-
Nat
iona
l Tre
asur
ySt
adi M
ngom
ezul
uAuditandriskcommittee
and
Boar
d fe
e 1
4 1
15
-
Governmentlevies
(482
)-
--
Pric
ewat
erho
use
Coo
pers
Robe
rt C
appe
r Discretionarygrants
- -
1994
(2102)
SARS
CorneKarsten&Kate
Hlongwane
DiscretionaryGrants
495
(4
95)
--
UniversityofJohannesburg
AmandaDempsey
Discretionaryprojects
6
- -
-
Thetransactionsaboveoccurredundertermsthatwerenomorefavorablethanthoseavailableinsimilararm’slengthdealings.Thetransactionsdisclosedexlcudesthetransactionsthatrelate
tostatutoryrequirements.Transactionsdisclosedaboverelatetoadmininstravtiveexpensesanddiscretionarygranttranasactions.DiscretionaryGrantscompriseoftheStrategicCashGrant,
LearnershipCashGrant,AssessorModeratorsGrant,SMMEGrantandprojectfundingdisbursedinaccordancewiththeprioritiesasdefinedintheSectorSkillsPlan.Noguaranteeshave
beengivenorreceived.Noexpensehasbeenrecognisedintheperiodforbadordoubtfuldebtinrespectoftheamountsowedbyrelatedparties.
*TsakaniMalulekejoinedDeloittefrom1January2012.Thetransactionsrecordedaboverelatetocontractsthatwerefinalisedduring2010/2011priortoherappointmenttotheFasset
boardandDeloitte.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
60 Annual Financial Statements
24. noteS to CoMpARISon oF BUDGet AnD ACtUAl
Legislation requires that Fasset annually, in September submit a budget to theMinister for approval. Any subsequentchangesrequiredtotheinitialbudgetareapprovedbytheBoardonrecommendationoftheFinanceCommittee.
24.1 Skills Development Levy: income from non-exchange transactions:
Levy receiptswerehigher thananticipated.Levy receiptswerehigher thanbudgetdue toan increase in thenumberofcompaniesthatjoinedFassetduringthefinancialyear.Onaveragetherewasagrowthof13%inthenumberofcompaniesthat contributed levies to Fasset compared to theprior year.Aportionof the increase resulted fromunanticipated levyadjustmentsfromSARSrelatingtotheprioryears.
24.2 Skills Development Levy: penalties and interest from non - exchange transactions
Incomefrompenaltiesandinterestarisewhenemployersfailtosubmittheirreturnsasrequiredbylegislation.Theseamountstypicallyvarysignificantlyyearonyearandassucharenotbudgetedfor.Thefullbalanceismadeavailableforprojects.
24.3 Investment Income
The investment income was higher than budgeted due to the increase in income which resulted in Fasset having additional surplus funds to invest. The significantly higher than expected increase combinedwithout a similar increase in projectexpenditureresultedinadditionalmoniesinvested,andassuchincreasedtheinvestmentincome.
24.4 Employer grant and project expenses
Thefinalbudgetincludesestimatedfundingavailableforprojects.Thelifecycleofsomeoftheprojectsisbetween1-3years,withthemajorityofexpensesonlyincurringinyear2oftheprojectlifecycle.Theactualexpenditureforthecurrentyearislessthanbudget,asprojectallocationsweredoneinOctober2011.MostoftheprojectsonlycommencedinJanuary2012toco-insidewiththestartoftheacademicyear,thisresultedinthelowerspendingonprojectexpenditureforthecurrentfinancialyear.
24.5 Administration expenses
Administrationexpenditureislimitedto10%ofleviesreceived.Thelegislativelimithasnotbeenexceededandthesavingswillbeutilisedtofundsectorskillsprioritiesthroughvariousprojects.Thesavingsweremainlyinthesalaries,traininganddevelopment,ETQAandmarketingfunctions.
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Fasset Annual Integrated Report 2011-2012
61Annual Financial Statements
noteS to tHe AnnUAl FInAnCIAl StAteMentSFoR tHe yeAR enDeD 31 MARCH 2012
Integrated Report
Index
ReportProfile 63
OrganisationalContext 64
StakeholderEngagement 65
The Fasset Board 66
Operations 68
StrategicImperatives 71
PrioritiesandObjectives 73
OrganisationalPerformanceandSustainabilityImperatives 74
FuturePerformanceObjectives 83
Fasset Annual Integrated Report 2011-2012
Report profileFasset has embarked on a journey towards integratedreporting. We have adopted an incremental approach todefining and implementing our sustainability agenda and the manner in which we report on our performance in an integrated manner. It is for this reason that this report is entitled an “annual integrated report” to reflect the start of our journey towardsproducinga truly integratedaccountofour performance and the value that we create, taking into account economic, environmental, social and governance (ESG)considerations.
Werecognisethatwemayonlybeabletomeetintegratedreportingstandardstoaverylimitedextentintheshort-term.The recommended approach is to engage in the process in an evolving manner, while addressing the gaps, rather than defer theprocessuntilallrequirementscanbemet.
The purpose of this report is to provide an aggregated view of our performance and to communicate the tentative steps we have taken to articulate our sustainability agenda as it impacts on our stakeholders. The information reflected in this report relates to the financial year, 1 April 2011to31March2012.TheyearunderreviewwasourtwelfthyearofoperationandthefirstyearofFasset’sre-licensingintermsof theDepartmentofHigherEducationandTraining’s(DHET) National Skills Development Strategy III (NSDS III),whichcameintoeffecton1April2011.
RepoRt pARAMeteRS
The boundary, scope and content for this report have been determined in accordancewith theGlobal ReportingInitiative’s (GRI) ‘G3’guidelines,relevantsectorsupplementsand reporting protocols. We also took cognisance of therecommendations outlined in the2009KingCommittee ontheCodeofGovernancePrinciplesforSouthAfrica(KingIIICode).
In preparing this annual integrated report, we have embraced theGRIprinciplesoftransparency,inclusiveness,auditability,completeness, relevance, sustainability context, accuracy,neutrality, comparability, clarity and timeliness. We haveprovided material disclosure on governance, strategy, risk and opportunities in relation to our financial, economic and social
performance. Material topics are defined as those issues that reflect significant economic, environmental and social impacts or that would influence the decisions of our stakeholders.
The principle of stakeholder inclusiveness has been employed to ensure that disclosures are material and relevant to the legitimate interests and expectationsof Fasset’s stakeholders. Data reported pertains to thefinancialyearending31March2012.Datameasurementtechniques are replicable and information is not reportedif the margin for error is believed to substantially influence the ability of stakeholders to make informed decisions about the organisation’s performance. Measurement techniques,estimates and underlying assumptions are described where it is materially necessary to do so. Independent assurance of performance information contained in this report has been providedbytheAuditor-GeneralofSouthAfrica.
Weundertake tocontinually improveour reporting systems,provide useful and accurate reporting, and implement the requisite frameworks, strategies and policies, required toprogressinourintegratedreportingjourney.Webelievethatour annual integrated report sets the basis for meaningful engagement with all of our stakeholders in the year ahead. Afeedbackformhasbeenincludedattheendofourreportand we invite your comments and feedback to assist us in our integratedreportingjourney.
63
Fasset Annual Integrated Report 2011-2012
64
FassetoperatesintermsoftheSkillsDevelopmentAct(SDAAct97of1998,asamended),whichmakesprovisionfortheestablishmentof Setas for each national economic sector, as well as the Skills Development Levy Act of 1999 (as amended), which introducedprogrammes and funding policies designed to increase investment in skills development. These pieces of legislation provide an institutional framework for the Seta to develop and implement national, sectoral and workplace strategies in order to develop and improve the skills of the national workforce resulting in improvements in employability and productivity, whilst contributing to the competitiveness of the country.
WehavebeenoperatingsinceApril2000andareresponsibleforactivities within the finance, accounting, management consulting and other financial services sector. The Fasset sector consists of member organisationscategorisedintothefollowingsub-sectors:• InvestmententitiesandTrustsandCompanySecretarialServices,• StockbrokingandFinancialMarkets,• DevelopmentOrganisations,• Accounting,Bookkeeping,AuditingandTaxServices,• ActivitiesauxiliarytoFinancialIntermediation,• BusinessandManagementConsultingServices,and• SouthAfricanRevenueServices(SARS)andrelevantGovernment
Departments.
Fassetwasre-licencedforafurther5-yearperiodfrom1April2011to31March2016,bytheMinisterofHigherEducationandTraining,DrBladeNzimande.Infulfilmentofthis,wearefocusedondeliveringonourgeneralobjectivesasaSetato:• facilitate, coordinate and monitor the implementation of the
NSDSintheFassetSector,• identifyskillsshortagesintheSector,• supportthedevelopmentoftheskillsofemployeesintheSector,• supporttheimprovementofthequalityoflifeandlabourmarket
prospects of employees in the Sector,• strengthen the institutional capacity of the SETA, in order to
improveproductivityandthequalityoftheservicesitprovidestoits stakeholders,
• through the skills development levy, increase the levels ofinvestment in skills development and improve returns on such investment,
• support improved performance and productivity in the work-places in the Sector, as well as the competitiveness of employers,
• supporttheimprovementoftheemploymentprospectsofpersonspreviously disadvantaged by unfair discrimination,
• inliaisonwithemploymentservices,assistworkseekerstogainaccesstoworkexperience,
• inliaisonwithemploymentservices,assistretrenchedworkerstore-enterthelabourmarket,
organisational Context• liaisewithemployersinrespectofskillsdevelopmentprogrammes,• promotethedevelopmentofskillsaimedatself-employment,• support skillsdevelopment in the informal sector,cooperatives
andotherincome-generatinginitiativesfortheunemployed,• supportandpromotethedevelopmentofartisans,technicians,
professionals and persons in other categories,• support,facilitateandpromotethequalityofoccupation-based
learning in the Sector,• promoteeffectivecommunicationbetween,andparticipationby
bodies involved in skills development – both inside and outside the Sector,
• co-operatewith,andsupporttheQCTOinsuchmattersrelatingtoQCTOfunctionsandoperationsreferredtoinsection10oftheAct,and
• tocooperatewith,andsupportthefunctionsofotheragenciesinmatters related to skills development.
Inaddition tobeinggovernedby theSDA,Fasset isaligned toanumberofnational imperatives inSouthAfrica,andsector-specificregulatory imperatives, including transformation charters such as the Financial Sector Charter, the Chartered Accountancy Charter, theNewGrowth Path (NGP), Industrial PolicyAction Plan II (IPAP II),andtheNationalSkillsAccord.Weensurethatourstrategiesandskills development initiatives are integrated into the broader policy imperativesinthecountrysuchastheHumanResourcesDevelopmentStrategy for South Africa (HRDS-SA), which outlines the humanresources development strategy for the country; the Medium Term Strategic Framework (MTSF), which is a broad government framework that indicates economic growth drivers as well as the National Skills DevelopmentStrategy(NSDSIII),whichoutlinestheskillsdevelopmentstrategyforthenextfiveyears,andservesastheroadmapforFasset,within which to deliver our skills development interventions.
Weaddvalue tonationalstrategicobjectivesbyenablingaccesstoskillsdevelopmentopportunities.Wedothisbydeliveringonourmandateasoutlinedinthisreport.Wearefocusedonaddressingthechallenge of occupational skills shortages with a view to improving productivity within the economy and are mindful of the need to achieve fundamental transformation of inequities that are linked torace, gender, class, age and disability.
We have a staff complement of 22 people and engage withapproximately4500memberorganisations.LearnerswereregisteredonlearnershipsintheyearunderreviewandwedisbursedR149,2million towardsMandatoryGrantsanda furtherR19,7millionwaspaid towardsDiscretionaryGrants,whichenabledus toupskillanddeliverprojectsthatimpactontheskillsneedsofoursector.
Fasset Annual Integrated Report 2011-2012
65
Weengagewith a broad range of stakeholders in the Fassetsector inourquest tomake the future countand to understandtheexpectationsandkeychallenges thatourstakeholders face,and how these can be addressed. This also informs our strategic planning and skills development priorities. Based on this we identify and address material issues, risks and opportunities within our operating context, taking into account their impact on ourstakeholders.
Stakeholder engagementOur stakeholders are defined as entities and individuals that are significantly affected by our activities, and those who have the ability to significantly affect our ability to implement strategies andachieveobjectives.Wehave identifiedour stakeholdersas Government, regulatory bodies, professional bodies inour sector, member organisations, including employers and learners,ouremployees,suppliers,serviceprovidersandprojectpartners, the community, media and the natural environment.
Stakeholder Engagement Activities
Stakeholder Group Engagement Mechanisms
Governmentandregulatorybodies Meetings, briefings, regulatory submissionsProfessional Bodies AnnualGeneralMeeting(AGM),customersatisfactionsurveys,
publicationssuchasFACTSnewsletter,e-factsandl-facts,website, lifelong learning training events, skills development initiatives,sector-wideconsultations,WorkingCommittees
Member organisations, including employers and learners AGM,customersatisfactionsurveys,FACTSnewsletter,e-facts,l-facts,website,lifelonglearningtrainingevents,skillsdevelopmentinitiatives,sector-wideconsultations,workingcommittees
Suppliers,serviceprovidersandprojectpartners Meetings, briefings and site visits Our employees Staff meetings, email, newsletters, team building sessions, staff
training, performance management discussions The community Employeevolunteerismactivities,sitevisitsMedia Press releases, internet, print, online, radio, television and
social mediaEducation&trainingproviders Meetings, briefings, site visits
Fasset Annual Integrated Report 2011-2012
66
Fasset’snewConstitutionwasapprovedon8 May2011,pavingthewayforFasset’sre-licensing.Oneoftheprimarychangeswroughtby the new Constitution is the inclusion of three independent board members,inthenowstandard,15-personSetaBoard.SetaBoardsare drawn from diverse backgrounds and bring with them a wealth ofexperience, insightandprofessional skills.OurBoardmembersactivelyengageinbusiness,whilesharingtheirexpertise.Theyhelpto advance strategic issues and provide oversight on governance matters.
TheBoard,whichhasbeenappointedfortheperiod1April2011to31March2016,iscomprisedof:• threeMinisterialappointmentsthatincludeanindependent,non-
voting Chairperson,• sixemployeerepresentativesmadeupof3TradeUnionsand
three Professional Body representatives, and• sixemployerrepresentatives.
Quarterly Board meetings are held to evaluate Seta performance, assessrisksandreviewFasset’sstrategicdirection.Inaddition,Boardmembersattendanannualtwo-daystrategicplanningsession.
In line with King III principles, our Board recognises the need to conduct our business with prudence, transparency, integrity and accountability and to report to our stakeholders in a proper and timely manner.
Fasset Board
prabir Badal• AppointedtoFassetBoard
1April2011
• MemberofRemco
Shahied Daniels• AppointedtoFassetBoard
1April2011
• MemberofAuditandRisk
Committee
Amanda Dempsey• AppointedtoFassetBoard
1April2011(Independent)
• FincoChair
• MemberofRemco
Holger Fischer• AppointedtoFassetBoard
1April2011
• MemberofExco
• SkillsPlanningCommitteeChair
Sathie Gounden• AppointedtoFassetBoard
1April2011
• MemberofFinco
Working Committees
TheBoard is supportedby sevenWorkingCommittees:ExecutiveCommittee,AuditandRiskCommittee,CommunicationCommittee,Finance Committee, HR and Remuneration Committee, SkillsPlanning Committee and a Quality Assurance Committee.Information regarding the attendance and membership of each of thesecommitteesisprovidedinAppendixC(onpage93).
Committees are responsible for formulating policies and procedures. WiththeexceptionoftheAudit&RiskCommittee,theBoard,Exco,FincoandRemcoareremuneratedinlinewiththeMinister’sapprovedrates for Board and Committees.
The remainder of the Working Committees (Skills Planning,Communication,QualityAssurance)arenotremuneratedforattendingCommitteemeetings.Theyare,however,remuneratedforout-of-pocketexpendituresuchastravel.SpecificsintermsoftheremunerationofBoard and Committee members during the period are provided in Table3includedintheReportoftheAccountingAuthority.
Fasset Annual Integrated Report 2011-2012
67Fasset Board
kate Hlongwane• AppointedtoFassetBoard
1April2011
• MemberofSkillsPlanning
Committee
Corné karsten• AppointedtoFassetBoard
1April2011
Daisy kopolo• AppointedtoFassetBoard
1April2011
• MemberofExco
*ResignedMarch2012
Samantha louis• AppointedtoFassetBoard
1April2011
• MemberofExco
• CommunicationsCommittee
Chair
Bongani Mathibela• AppointedtoFassetBoard
1April2011
• MemberofFinco
tsakani Maluleke• AppointedtoFassetBoard
1April2011
• IndependentChairman
• ChairmanofExco
Stadi Mngomezulu• AppointedtoFassetBoard
1April2011
• MemberofAuditandRisk
Committee
Mpuseng Moloi• AppointedtoFassetBoard
1April2011
• RemunerationCommitteeChair
• MemberofExco
Mopo Mushwana• AppointedtoFassetBoard
1April2011(Independent)
• MemberofFinco
• MemberofCommunications
Committee
• MemberofSkillsPlanning
Committee
Seshni Samuel• AppointedtoFassetBoard
1April2011
• QualityAssuranceComittee
Chair
Fasset Annual Integrated Report 2011-2012
68
operations
RegionNumber of Interventions
(Lifelong Learning programme, Development Projects, Career Expos, Brand Ambassador Campaign)
EasternCape 12Free State 7Gauteng 28KwaZulu-Natal 9Limpopo 4Mpumalanga 2NorthWest 3Northern Cape 5WesternCape 11
We operate from our head office in Blackheath, Johannesburg.Through a range of interventions, we maintain a regional presence throughout the country, enabling us to provide much-neededinformation to learners and graduates on career guidance, workplace experience as well as training opportunities to ourmember organisations and their employees.
Wedothisthroughthefollowing:• anannual Lifelong Learningprogramme,which visits up
to54townsandcitiesthroughoutSouthAfrica,enablingmember organisations and their employees in the Fasset sector to remain upskilled in a range of subject areas,whichcomplementContinuousProfessionalDevelopment(CPD)requirementsthroughtheprovisionoftrainingevents,
• Fasset Brand Ambassadors, who are learners that arestudyingatuniversitiesandFETcolleges,whohavebeentrained by Fasset to disseminate information to fellow learners and other young people,
• attendingcareerexhibitionsaroundthecountry,• aCallCentreandwebsite,and• Work Readiness Projects that identify unemployed
graduates from across the country and assist them to obtain workplace skills to be able to secure employment.
LifelongLearningprogramme
DevelopmentProjects
CareerExpos
BrandAmbassadorCampaign
Northern Cape
WesternCape
Gauteng
EasternCape
KwaZulu-Natal
NorthWest
Free State
Mpumalanga
Limpopo
Fasset Annual Integrated Report 2011-2012
69Operations
GoVeRnAnCe
Fasset’s organisational environment is underpinned by corporategovernanceprinciplesandpractices.WecomplywiththePFMAandtheKingIIICodeofGoodCorporateGovernance.Thisenablesus to manage stakeholder concerns, build commitment within and outsidetheorganisation,andtofocusondelivery.Werecognisethat good governance is at the heart of creating sustainable organisations. To this end, we completed our maturity curve with respect to aligning to the King III Code and will commence with the process of aligning our policies and procedures to the Code in thecomingyear.Wewillalsodevelopanethicsprogrammeandcommence with progress to disclose our performance with regard to ethics as an integral part of good governance principles.
AcomprehensivesetofpoliciesisalsoinplaceinaccordancewithFasset’sConstitutionandinsupportoftheSectorSkillsPlan(SSP)andthe Strategic Plan. Our Board and other governance structures such
astheExecutiveCommittee,FinanceCommitteeandAuditandRiskCommittee continue to ensure that internal controls are implemented andmonitoredadequatelytoprovidereasonableassurance.Boardand Committee assessments are conducted annually to gather feedback on overall performance of the Board and it's Committees. TheassessmentsfocusonareassuchasBoard/Committeesizeandcomposition, competence, information, agenda, performance and standardsofconduct.AnanalysisoftheresultsarereportedtotheBoard with a set of recommendations. For the year under review, the assessments indicate an overall effectiveness and proper functioning of the Board and Committees in discharging their governance role withintheSeta.Anintegratedqualitymanagementsystemisalsoinplace, which is updated regularly, in line with changing business practiceandlegislativerequirements.AlistofFassetpoliciesandinternalpoliciesandproceduresisprovidedinTable4andTable5respectively. Policies are reviewed anually and revised accordingly wherechangesarerequired.
Table 4: Fasset policies
Number Policies
1 Anti-FraudCharter
2 AppraisalandSuccessionofBoardandCEOPolicy
3 AuditandRiskCommitteeCharter
4 Board and Committee Terms of Reference
5 BoardElectionProcess
6 Business Continuity Plan
7 Code of Conduct
8 DiscretionaryFundingPolicy
9 Financial Policy and Procedures
10 Fraud Implementation Plan
11 Fraud Prevention Plan
12 Fraud Response Plan
13 GrantDisbursementPolicy
14 HRManual
15 Impact Policy
16 Information Systems Policy
17 Board&CommitteeTermsofReference
18 ProatiaManuals:English,AfrikaansandXhosa
19 Proceduredocument:strategyplanningandperformancemanagement
20 Risk Management Framework
21 Risk Management Policy
22 Supply Chain Management Policy
Fasset Annual Integrated Report 2011-2012
70 Operations
Table 5: Internal policies and procedures
Number Internal Policies and Procedures
1 Benefit Screen Policy2 Call Centre Process and Procedure Manual3 DocumentManagementPolicy4 EmployeeHandbookandInductionManual5 Internal Meeting Policy6 Materiality Framework7 Marketing and Communication Policy8 Temp Telephone Policy9 Quality Policy 10 ResearchandDatabaseRequestPolicy11 Research Policy 12 RiskAppetitePolicyStatement
InteRnAl FInAnCIAl ContRol
Internal financial control focuses on critical risk areas, identified by management and reviewed by the Financial Committee. The management team and the governing structures are confident that the standards, which have been set and the systems of internal control and accounting control, which have been implemented are adequateandensure the integrityand reliabilityof the FinancialStatementsandaccountabilityofFasset’sassets.Thesesystemsaremonitored continuously throughout the year by management and InternalAudit.
The system of internal controls provides reasonable, as opposed to,absoluteassurance.Duringtheperiodunderreview,adequateaccounting records were maintained. The external auditors areresponsible for reporting on fair representation of the AnnualFinancialStatementsandtheirreportcanbefoundonpage15.
RISk MAnAGeMent
Fasset is accountable to a variety of stakeholders and the environmentinwhichweoperateissubjecttoawiderangeofrisks.Werecognisethatriskisdynamicandisinherentinallexternalandinternaloperatingenvironments.Assuch,wearecommittedtotheoptimal management of all risks associated with the performance of functions and delivery of services in order to achieve our vision, mission,objectivesandstrategicplans.Tomeetthiscommitment,themanagementofriskisintegratedintoourexistingstrategy,planning,budgeting and operational process and is fully recognised in funding and reporting processes on the basis of the evaluation of the levelofriskandFasset’sexposure.
An independent riskmanagement process is in place to enablethe Fasset management team to effectively identify, evaluate and
assess risk. It is the InternalAuditor’s responsibility tomonitor theprescribed procedures. No unmitigated high-risk areas wereidentified during the reporting period under review. In compliance with National Treasury requirements, the Internal Auditors havedirectaccesstotheChiefExecutiveOfficer(CEO),theAuditandRiskCommitteeandtheBoard.Fasset’sCodeofConductensuresthat ethical standards are adhered to at all times. The details of the Risk Management Plan are contained in the suite of documents that include the Risk Management Framework, Risk Management Policy, Risk Appetite and the Risk Register. Our risk register hasidentified risks in the following areas: governance and financialreporting;sectorskillsplanning;projects;learnerships;EducationalTrainingandQualificationsAuthority(ETQA);QualityManagementSystem (QMS); Grants; Information Technology and InformationManagement;MarketingandCommunications;HumanResources;RevenueManagement;CashManagement;AssetManagement;LiabilityManagement;SupplyChainManagementandExpenditureManagement.
The Board has oversight of the risk management function and providesguidanceandsupporttotheCEOonRiskManagement-related Strategy and Policies. This function has been delegated totheAuditandRiskCommitteeonbehalfoftheBoardtoensurethatariskmanagementprogrammeisinplace,isadequateandeffective, and provides a realistic view of the key risks facing the organisation.ARiskManagementCommitteehasbeenestablishedasasub-committeeoftheAuditandRiskCommitteeresponsibleforassistingtheCEO,inhercapacityasChiefRiskOfficer,tomonitorthe performance of risk management.
AllsignificantrisksfacingFassethavebeenidentifiedfollowinganannual assessment and included in the risk register with an indication of the impact and likelihood rating for each risk.
Fasset Annual Integrated Report 2011-2012
71
The
follo
win
g im
pera
tives
hav
e be
en id
entifi
ed in
resp
ect o
f our
man
date
and
as
they
rela
te to
stra
tegi
c, re
gula
tory
and
repu
tatio
nal m
atte
rs. O
ur re
spon
se to
thes
e fo
rms
the
basis
of o
ur
curre
nt p
riorit
ies.
Impe
rati
veW
hat
are
we
doin
g ab
out
it
CompliancewithgeneralregulatoryandSeta-
spec
ific
legi
slativ
e fra
mew
ork
to e
nsur
e go
od
gove
rnan
ce
•Generalcompliancewithallgazettedregulationsandapprovedpolicyframeworkisinplace
•Monthlymanagementreportsthatincludecheckliststoensurecompliancewithallrelevantlegislationaretabled
•ReviewbyBoardandExcoofcompliancereportsatallmeetings
•ImplementationofanintegratedQualityManagementSystemthatisupdatedregularlyandkeepsabreastofchangesin
legi
slatio
n.
DeliveronourSetamandate
•StrategicPlanisinplaceanddeliveringonourtargetsagainstNSDSIII
•QuarterlyreportsaresubmittedtotheBoard,DHETandNationalTreasuryinlinewithrequirements
•TheBoardmonitorstheattainmentofkeydeliverablesandtargetsandensuresstrategicalignmentandthatdesired
outc
omes
are
ach
ieve
d
•QuarterlyvalidationvisitsconductedbyDHET
•Internalauditfunctioninplacewithrisk-basedauditsperformedagainstanapprovedannualauditplan
•MarketingandcommunicationinterventionsaimedatstrategicallypositioningtheSetaandadvocatetheFassetbrand
Incr
ease
the
num
ber o
f ski
lled
peop
le in
the
Fass
et s
ecto
r •Providelearnershipsthatmeettheneedsofthesector
•SupportskillsdevelopmentinitiativesintheworkplacethroughMandatoryGrantsandincreaseaccesstooccupationally-
directedprogrammesinneededareasaswellasexpandtheavailabilityofskillsthroughDiscretionaryGrants
•LifelongLearningtrainingaspartofcontinuousprofessionaldevelopment
•Learnercareerguidancecampaign
•WorkreadinesstrainingandoccupationallydirectedqualificationsthroughDevelopmentProjects
Addressoccupationalskillsshortages
•Focusonskillsdevelopmentprioritiesasidentifiedthroughthesectorskillsplan
•Partnershipswithnetworkofprofessionalbodiesandotherdeliverypartners
Developandmaintaintheskillsbaseofthe
curre
nt w
orkf
orce
•ProduceSSP
•Providetrainingeventsthroughthelifelonglearningprogrammeaspartofcontinuousprofessionaldevelopment
•WorkreadinesstrainingandoccupationallydirectedqualificationsthroughDevelopmentProjects
•ProvidequalityassuranceforthequalificationsandunitstandardsthatfallintoFasset’sscopeaswellasqualityassure
Fasset’sQAPs(QualityAssurancePartners)andaccreditedproviders.
Stra
tegi
c Im
pera
tives
Fasset Annual Integrated Report 2011-2012
72 Strategic ImperativesIm
pera
tive
Wha
t ar
e w
e do
ing
abou
t it
DrivetransformationintheFassetsector
•TransformationcharterssuchasFinancialSectorCharterandCharteredAccountancyCharterinformstrategicplanning
proc
ess
•Newstrategicdirectionfocusingonthecriticalneedareasbasedonguidingprinciplesthatincludetransformation
impe
rativ
esAbilitytoattract,developandretain
appr
opria
te s
kills
•Policiesinplacedesignedtoestablishandmaintaincompetitive,fair,equitableandmarket-relatedcompensationthat
includesanincentiveschemeforexceptionalperformance
•Implementationoftraininganddevelopmentopportunities,includingsubsidisededucationforformalstudiesalignedto
func
tiona
l res
pons
ibili
ties
•Implementationoftraining,recruitment,selectionandretentionstrategies
•AnHRandRemunerationCommitteeisinplacetohaveoversightofHR-relatedmatters
•Performancemanagementsystem
Producequalityskillsresearchthatisrelevant,
enab
les
effe
ctiv
e str
ateg
ic p
lann
ing
and
executionoftheskillsdevelopmentmandate.
•Afive-yearSSP,togetherwithanannualupdate,isproducedtoanalysethedemandforandsupplyofskillstothe
sect
or a
nd,
on th
e ba
sis o
f thi
s an
alys
is, to
det
erm
ine
the
skill
s ne
eds
and
the
skill
s de
velo
pmen
t prio
ritie
s fo
r the
sec
tor.
StrategiesforaddressingtheskillsneedsandmeetingtheNSDStargetsalsoformpartoftheSSP.
•Longitudinalimpactstudywillbeconductedtoassessimpactandinformstrategicplanning
•Customersatisfactionsurveysareconductedtomeasurethelevelofeffectiveness,satisfactionandimpactofour
stake
hold
er in
terv
entio
ns
Trac
k im
pact
of s
kills
dev
elop
men
t int
erve
ntio
ns
in th
e se
ctor
•Impactindicatorsareidentifiedforeachinterventionandincludedforcompletionaspartofprojectclosurereports
•Impactstudiesareconductedregularly,includingtheMandatoryGrantImpactStudyandtheLongitudinalimpactstudy
and
the
annu
al g
rant
ana
lysis
Effectivestakeholderengagement
•BudgethasbeenallocatedforthedevelopmentandimplementationoffocusedstakeholderengagementandKeyAccount
Man
agem
ent i
nter
vent
ions
•OngoingimplementationofmarketingandcommunicationinterventionsaimedatstrategicallypositioningtheSetaand
enha
ncin
g th
e Fa
sset
bra
nd•Learnercareerguidancecampaignthatincludesattendingcareerexhibitionsnationally,learnere-zines,campusbrand
amba
ssad
or c
ampa
ign,
soc
ial m
edia
•Promotecultureofinnovationforongoingvaluecreationandidentificationofopportunitiestoaddressstakeholderneeds
Fasset Annual Integrated Report 2011-2012
73
In identifying skills development priorities, we did not only consider the needs of our own sector, but the financial needs of the economyas awhole.A list of our skills developmentpriorities that we intend supporting over the next five-year
priorities and objectives
period2012–2017isprovidedinTable6.TogetherwiththeNSDSIIItargets,includedasAppendixAonpage84,theseformthebasisofourstrategicobjectives.
Table 6: Skills development priorities
Increasing the flow of new entrants to the labour market
•IncreasingthenumberofentrantstothelabourmarketatFurtherEducationandTraining(FET)level•DevelopingworkreadinessandsoftskillsofentrantsatHigherEducationandTraining(HET)level•Increasingthenumberofgraduatesinprofessional-body-accreditedHETprogrammes•Increasingthenumberoflearnerswhoqualifyonprofessionallearnerships•Increasingtheretention,workreadinessandlabour-marketabsorptionoflearnersonlearnerships•Increasingthenumberoflearnersthatenterthelabourmarketthroughinternships
Developing and maintaining the skills base of the current workforce
•IncreasingthenumberofemployeesinthelabourmarketatFETandHETlevels•Ensuringthatemployeesreceivetraining(shortcoursesandskillsprogrammes)•Supportingskillsdevelopmentinsmallcompanies
Strengthening the financial skills base of the public sector
•IncreasingthenumberofpublicsectorlearnersonFET-andHET-levelqualificationsandlearnerships
unemployed youth
•AttractmoreAfricanand/orAfricanpeoplewithdisabilitiestothesector•Provideopportunitiestocompleteoccupationally-directedqualificationsandworkreadinesstraining
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We measure our organisational performance in terms ofour performance against NSDS III targets. Outcomes andperformance indicators aligned toNSDS III are included asthebasisuponwhichFassetwilldeliveritsstrategicobjectives.We also report on our efforts with respect to sustainabilityimperatives as they relate to our staff, suppliers, community and the natural environment.
CReAtInG VAlUe In oUR SeCtoR
We havemet all our targets in terms of delivery againstNSDSIIIindicatorsfortheperiod1April2011to31March2012. Details are provided in Appendix A on page 84.We reporton the value thatwecreate in the sector throughperformance achievements of our functional departments as outlined below.
leARneRSHIpS/etQA DepARtMent
TheLearnerships/ETQADepartmenthasover-achievedintermsof someof its targets,particularly in termsofhigh-level skills.Fassethasnotachievedaswellintermsofmid-levelskills.Thisis a reflection of the needs of the sector and can be ascribed to the fact that the sector does not necessarily need people with mid-levelskills,butdoesrequiretraineeswithhigh-levelskills.
leARneRSHIpS
Asat31March2012,wehad registered29 learnerships,whichofferarangeofentryandexitpoints forprofessionalsand techniciansalike.Of the50136 learners registeredonFassetlearnershipsto-date:• 4 197 learners were signed on during the year under
review,
• 1824are18.1learners(previouslyemployed),• 2373are18.2learners(previouslyunemployed),and• 26903havealreadycompletedtheirlearnershipto-date.
Transformation has always been a key driver within our sector. The demographic profile of learners on Fasset learnershipscontinues to improve from29% inYear2, to40%inYear5,to51%inYear12.Wehaveconsistentlyachieved a 100% placement rate on completion oflearnerships. This bodes well for growth in the South Africaneconomyasawhole.Whilethecurrenteconomicclimate has not necessarily impacted on the number of learners registered on Fasset learnerships, or learnership completion rates, employers now prefer to train learners at higher skills levels (above NQF 5) rather than at themiddle level (NQF 5 and below). Employees who havebeen trained in high-level skills will be able to add thevaluethattheemployerrequires,whilealsobeingabletocompleteworkassignmentsatthemiddle-level.
Following extensive consultation and engagement withstakeholders in these sectors, we have submitted the Financial Markets occupational qualification and Taxoccupational qualification to the QCTO for registration.A challenge in the year ahead is to develop FinancialMarketsandTaxlearnerships.
Twenty-oneMemorandaofUnderstanding(MoUs)withotherSetas has facilitated the implementation of learnerships across sectors. There are currently 1 163 learners fromother sectors on Fasset learnerships. Fasset employers have registered 1 172 learners, to date, on learnerships fromother sectors.
organisational performance and Sustainability Imperatives
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75Organisational Performance and Sustainability Imperatives
eDUCAtIon AnD tRAInInG QUAlIty ASSURANCE (ETQA)
We introduced a number of innovations during the year,including a move towards whole firm accreditation and internshipaccreditation.Wholefirmaccreditationrecognisesthat firms in the sector are well organised and are offering very goodtraining.Weareengagingwiththesefirmsandworkingvery closely with them to achieve whole firm accreditation and internship accreditation.
There has been a fair amount of flux within the qualityassuranceenvironment.WiththeestablishmentoftheQCTO,itmaybenecessarytore-registersomeunitstandardsbecausethese may be part of a skills programme, and not part of a qualification.Thismayprovechallenging.Anotherchallenge
Case Study
What makes organisations stand out in Fasset’s Best Practice Awards? Convenor of the awards and member of the judging panel, Fasset Learnerships/ETQA Director, Natércia Faustino explains why Ernst & Young’s submission stood out:
“Ernst & Young have really taken the awards in the spirit in which they were intended. Skills development is not only about the focus on your particular sector. Ernst & Young does not only look at skills development for accountants, they look for skills development across their organisation, from the tea lady to the CEO. They want to make sure that everybody is skilled in their particular job regardless of what their job is. This is what skills development is all about. It is not just about what your company does in business, it is about skills development across the board, improving the lives of the individuals and about improving how they deliver work.
With Silica, we see something very similar. It is not just about making sure that their staff is technically skilled. It is about making sure that there is a holistic view of skills development in the organisation. It is about ensuring that as a company their employees are well-rounded within the work environment. Silica Financial Solutions is looking at how their employees can best serve their clients. It is not just about whether they have the correct technical skills, but it is about what other skills do they need to provide a better service. Both companies stood out because it is about the whole service that they provide. Their approach is, what is good for the individual is good for business.”
SkIllS plAnnInG
Research informs our strategic planning process. It enables
us to determine the needs and determine priorities for the
sector. In the last year, we completed the Sector Skills Plan
(SSP) and theannual grant analysis.A considerableamount
emanates fromconfusionaround theQCTO’srole.Muchofthe information pertaining to the QCTO is piecemeal, making itverydifficultforSetaETQAbodiestoplanorstrategise.
Making Best Practice Count Awards
We introduced our Making Best Practice Count Awardsin 2008. The awards have been devised to recogniseorganisations that have gone beyond compliance, establishing benchmarks for training and development for the sector, andpossibly for the nation as awhole. Ernst &Youngwasdeclaredthewinnerin2011forthefourthyearinsuccession in thecategory: LargeEmployer.SilicaFinancialSolutionswasdeclaredthewinnerinthecategory:MediumEmployer,thesecondtimethatSilicaFinancialSolutionshaswon the award.
of new research was also undertaken including research
into academic and learnership costs to inform Fasset’s grant
scheme, as well as research into the structure of internships.
Based on the results of research into educational fees Fasset
decided to increase the grant amount for employers funding
qualificationsby5%.However, adecisionwas taken not to
Silica Financial Solutions receives award Best practice: Medium employer
ernst & young recieves award for Best practice: large employer
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76 Organisational Performance and Sustainability Imperatives
modifyanyofFasset’slearnershiptariffsastheresearchwasnot conclusive. In terms of research findings on internships, wehavebroughtinanadditionalqualityassuranceofferinginto the Fasset environment. In the next financial year, weplan to accredit internships offered by employers in the Fasset sector. By quality-assuring these offerings, internshipsoffered by Fasset employers will have greater credibility. The research findings from our SSP have also been used to inform our strategic direction for the new financial year, which haspointed toanover-representationof the Indianpeople,an adequate representation of Coloured people, and anunder-representationofAfricanpeopleinthesector.Wewillcomplete the sector survey in the new financial year, which is research undertaken every five years, and will take into accountNSDSIIIrequirements.
FSA assistance
One of the major changes during the period was theterminationofFassetSkillsAdvisor(FSA)assistance.Whilethenumber ofMandatory Grant submissions possibly declinedas a result, other factors such as the changing economic circumstances inSouthAfrica,whichhave resulted in somecompaniesclosingdown,couldbecontributors.WhileFassetexperienceda28%drop inMandatoryGrantapplications,this has not impacted on the achievement of targets. The bulk of companies, which have not submitted applications forMandatoryGrants are small businesses. The decline insubmissions is not a risk, but a correction.
Lifelong Learning
OurLifelongLearningprogrammeremainsaflagshipinitiative,whichcontinuestoaddsubstantialvalueforSMMEemployers,particularly in our current economic climate. This programme isaimedat improving thegeneralqualityof training inandproductivity of member organisations and their employees in the Fasset sector. It assists employees in remaining upskilled in a range of subject areas that complements ContinuousProfessional Development (CPD) requirements through theprovisionofqualitytraininginterventions.Thetrainingoffereddoes not overlap with interventions offered by professional bodies in the sector. For theperiod under review,14435delegatesattendedFasset’sLifelongLearningevents,bringing thetotalnumberofattendeessinceinceptionto82226.Wewill continue to support this programme in the new financial yearasoneofourflagshipprojects,whichwouldotherwisebeunaffordableformanyofourSMMEstakeholders.
DeVelopMent pRoJeCtS
Development Projects are fundedby unclaimedgrantmonies.Theseprojectsmeethigh levelskillsneedswithin thesectorasidentifiedinourSSP.Theyalsoseektoaddressthesector’spoordemographicprofile.Fassetwouldliketheseprojectstobecomea national flagship for access into and progression within the sector.
R82765660.27wasallocatedduringtheperiodunderreview,bringingtheamountallocatedtoDevelopmentProjectsoverthepast12yearstoR434301986.05andbenefitting14263individuals.Developmentprojectsfundedinthepastyearcontinuetosurpasstheminimumplacementrateof70%forindividualprojects.• Bonani6(ProjectaimedatincreasingworkplaceskillsofBlack
unemployedfinancegraduates):84,5%,• Thusanani5 (Aworkreadinessprogrammeforunemployed
graduates who have completed an NQF Level 6/7qualification):76%,and
• SciMathUS:76%intofurtherstudies(and100%passrate).
The focus of our Development Projects has evolved over time.Experiencehasenabledustobeabetterjudgeofthoseprojectsthat are most likely to result in the successful placement of learners. AdjustmentshavealsobeenmadeinlinewiththevariousincantationsoftheNationalSkillsDevelopmentStrategy.
AhistoryoftheDevelopmentProjectfundingdecisionstakenoverthepast11yearsshowsthatthemainfocusofthisfundingwindowhasbeenonworkreadinessprogrammes(71%)andatNQF6to8(92%).Duringtheyearunderreview,wehavealreadystartedtoseeashiftintheweightings.NQFlevel6to8projectfundingremainsat80%,andisalignedtoscarceskillsneedswithininthesector.Thishasnotchangedthroughoutthe12yearperiod. TheweightingbetweenWorkReadiness Projectsandacademicqualificationsupportisshiftinginlinewiththerequirementsofthechanging operating environment. We are working on a newfundingmodelforDevelopmentProjectsthatisaimedatadoptingapipelineapproach toproject funding. This approach seeks toidentify the education and training value chain of people who want to enter into the sector or who are progressing up the value chain within the sector. The pipeline will enable us to identify leakages withinthepipelineandvariousinterventionsrequiredateachlevelofthechain.Byadoptingthisapproach,DevelopmentProjectfundingcan be targeted towards interventions, which enable young learners to access, progress, qualify and ultimately secure sustainableemployment within the sector.
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Duetofundingconstraintswearenotbeabletosupportalllinksinthechainequally,noraddressallskillsneeds,whichhavebeenidentifiedwithinthesector.Wewillfocusontheareas,wherewecanmake the greatest contribution towards addressing the skills needs within the sector, conscious at all times, of our responsibility to align to nationalimperatives,meetandasmanyoftheNEETs(youngpeopleNotinEmployment,EducationorTraining)challengesaspossible.Embracingthisapproach,wewillbeabletoprovideyoungpeoplewith access to opportunities within the sector, while simultaneously meeting the needs of employers who are looking for appropriately qualifiedand/orskilledpeopletojointheirorganisations.
In the year ahead, we will seek new ways to become more proactive inour tenderingapproachinresponsetotheshift requiredinthe
utilisation of more public providers in the delivery of intervention programmes for the benefit of the broader sector. Innovative solutions beyond NSF funding, when it becomes available, will be investigated for further consideration. We remain cognisantof the need to be vigilant in terms of changing needs within the sector as well as changing DHET and national imperatives toensurethatFasset-fundedinterventionsarealignedtotheneedsofaDevelopmentalState.
WewillalsoprovideadditionalassistancetolearnersthroughtheNSFASLoanRepaymentGrant.
Case Study
I grew up in Ladysmith and completed my matric at Klipriver High School. I always knew that I would become either a lawyer or an accountant. It was a serious competition between the two. I am glad that I was really good in Accounting because the choice became much easier for me to make. I decided that I was going to become an Accountant. I went on to study for a Diploma in Cost and Management and then a BTech in Taxation.
When I completed my studies I was over the moon and so were my parents but nothing prepared me for the disappointment I felt while looking in vain for a job. I only got temporary jobs with no prospects for growth or the future. These contracts would last for a few months then I would find myself at home looking for another job. It was a really frustrating period for me and for my family.
I kept applying for countless positions but had no response so I went on to apply for anything I could come across. In March 2008, my parents decided it would be best for me to come to Gauteng "The city of gold” in pursuit of my career. I was a very loyal buyer of The Star (workplace). I still remember that Wednesday when I saw a job advertisement for Trainee Accountants. I decided to call and apply and that was the beginning of great things for me.
When I was accepted onto the program, I told myself that I would embrace this opportunity and make a success of it. The skills I learnt on the programme are of paramount importance to any person wanting to enter the workplace. I have realised that there is a huge difference between what you study at tertiary level and what the workplace requires of you.
After being placed in employment I realised that had I not done this programme I would have made grave mistakes in the workplace as the programme really made me ready for work. I am now confident as a person and the knowledge that I gained on this programme I will use for the rest of my life. Coming from a rural area nothing is really expected of you but I know now that my future is bright. Thanks to Fasset - you have no idea what your contribution does for students like me. It equips us with skills for life, skills that nobody can take away from us.
Sinethemba ZikalalaPast learner on Fasset Work Readiness Programme
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78 Organisational Performance and Sustainability Imperatives
MARketInG AnD CoMMUnICAtIon
The Marketing and Communication function is focused on delivering interventions aimed at strategically positioning the Seta and enhancing the Fasset brand. This includes a stakeholder engagement component and the career guidance campaign, which has been expandedtoincludeabrandambassadorcampaignaspartofourprovincial strategy to promote inclusivity and promote access for the youthlocatedoutsidethemajormetropolitanareas.
Inthelastyear,wefocusedonthefollowinginterventions:• Apublicityprogramme,whichhasbeendevised to increase
participation in Fasset interventions, was undertaken. Fair and equitable media coverage was obtained in businesspublications, national and regional newspapers, community newspapersandweb-basedpublications.FreepublicitytothevalueofR4302571.94wasobtainedfortheperiodunderreview,thehighestvaluesinceFasset’sinception,comparedtoR2,22millionachievedduringthepreviousfinancialyear.
• Variouspublicationswereproducedduringtheyear,including,ourquarterlynewsletter,Facts,amonthlye-zine,E-Facts,ourbi-annuale-zine for learners, L-Factsand the2010/11AnnualReport.Our“DecadeofDelivery”book,publishedin2010,receivedtwoawardsfromtheSouthAfricanPublicationForum,namely, “Excellence in Communication and Writing,” andFinalist:BestOnce-offpublication.ThebookwaslaunchedatFasset’sAGMinSeptember2010.
• Via a partnership with the South African QualificationsAuthority (SAQA),weparticipated ina radiocampaign tocreate awareness aimed at upskilling learners and capacitating them with career guidance information. Nine radio stations provided coverage on Ikwekwezi FM, Ligwalagwala FM,UmhlogoWeneneFM,ThobelaFM,MotswedingFM,UKhoziFM,MunghanaLoneneFM,PhalaphalaFMandLesediFM.
• TheFassetwebsiteremainsaflagshipmechanismforon-goingcommunication with our stakeholders, and remains a popular source of information for the sector and the general public. Atotalnumberof402616visitorsvisitedtheFassetwebsiteduringtheperiod.Anewwebsitedesignwasapprovedduringtheperiod.Thiswillbelaunchedinthenextfinancialyear.
• The Call Centre continues to deliver high levels of service.Fasset management and Call Centre managers and supervisors continue to meet on a monthly basis to ensure that the call centre standard is maintained and to discuss upcoming challenges.
• Wehavedevelopedasocialmediastrategyforimplementationin the coming year.
• ImplementedaReturnonInvestment(ROI)modeltomeasuretheeffectiveness of our initiatives
• Launched a Brand Ambassador Campaign at 9 FET anduniversity campuses across the country, which enables us to have
a regional presence and promote career awareness in areas of scarce skills, the myriad of career options within the sector; andalsoprovideinformationaboutFasset-fundedDevelopmentProjects.
• DevelopedaKeyAccountManagement(KAM)Strategy,whichfocusesonKAMrelationshipbuilding interventions,extendingbeyond Fasset's current stakeholder engagement strategy.
In the coming year, we will place attention on measuring our customer satisfaction and will continue to measure the effectiveness of our initiatives through our ROI model. Partnerships will also be continued to be maintained to promote career awareness in the Fasset sector.
BeInG A ReSponSIBle eMployeR
Wehaveastaffcomplementof22people.Thepermanentteamiskept to the minimum for the implementation and maintenance of core functionsasdefinedbytheSDA,andis taskedwithimplementingstrategies and policies outlined in the legislation and agreed to by theFassetBoard.ThisisinlinewithFasset’scommitmenttoensuringthat the highest possible proportion of the levy is allocated to skills development interventions rather than administrative processes.
Strongleadershipplaysapivotalroleinentrenchingaperformance-basedandethics-orientedculturethroughouttheorganisation.Duringtheyearunderreview,ourmanagementteamconsistedoftheCEO,the COO and five professionals as outlined in the organisational organograminAppendixDonpage93.Themanagement teamis tasked with implementing strategies and policies outlined in the SDAandtheFassetStrategicPlan,asapprovedbytheBoard.Non-corefunctionssuchasInternalAudit,InformationTechnology(IT),CallCentreandFinanceareoutsourcedandspecificexpertiseisprocuredasandwhenrequired.ThisapproachhasenabledFassettofocusoncore functions and consistently deliver on our mandate.
The Fasset team has remained stable since its inception, growing proportionatelyovertimeandischaracterisedbyseverallong-servingteam members. This has ensured that the institutional knowledge of the organisation is retained. Our mode of operation includes a multi-skillingapproachthatprovidesopportunitiesforexposuretoavariety of work assignments and enables Fasset to manage in times ofoperationalconstraints.Wehaveidentifiedtheneedtodevelopaknowledgemanagementrepository,overandaboveourexistingstructures, and will put additional mechanisms in place in the coming yeartoensurethatinstitutionalknowledgeisadequatelyretained.
There were three resignations during the period and two promotions. Abreakdownof thedemographicprofileandstaffingpositions isprovidedinTable7onpage79.
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79Organisational Performance and Sustainability Imperatives
Table 7: Staff profile for the period 1 April 2011 to 31 March 2012
Staff member Position Race GenderDate
JoinedPromotion
DateResignation
DateFarhanaBhamjee Skills Planning Senior Officer Indian Female Oct-07 Aug-11Nomadlozi Buthelezi Learnerships/ETQAOfficer Black Female Oct-03Berlinda Chidi Learnerships/ETQAAssistant Black Female Sep-08LaurenDerman DirectorofSkillsPlanning White Female Apr-01
Natércia Faustino DirectorofLearnerships/ETQA White Female Mar-08 01-Apr-11
CherylJames ChiefExecutiveOfficer White Female May-00
Nadine Kater COOandDirectorofLearnerships/ETQA Coloured Female Aug-00 Apr-11
LesegoLebuso Chief Operating Officer Black Female Aug-11TaniaLee ProjectsManager Coloured Female Mar-04Mando Mahlangu Skills Planning Officer Black Female Nov-07AnnahMaseko OfficeAttendant Black Female Sep-03Bomkazi Mnombeli Operations Officer Black Female Apr-08GuguMoetanalo Operations Manager Black Female Jun-00GlodinahMoleko OperationsAssistant Black Female May-08Bontle Monchusi ProjectsAssistant Black Female Aug-08 Aug-11
Marelda Moodley Marketing&CommunicationsManager Indian Female Feb-09
Nomandla Mtetwa ProjectsAssistant Black Female Jun-09Thandiswa Nduna SkillsPlanningAssistant Black Female Apr-07
Naamochenee Pillay Learnerships/ETQASeniorOfficer Indian Female May-05
DesireéRikhotso SkillsPlanningAssistant Black Female Oct-05
Thabiso Sebashe Marketing&CommunicationsAssistant Black Female Sep-03
Maphuti Setati Learnerships/ETQAAssistant Black Female Jun-10 Jan-12Pearl Thomo OfficeAttendant Black Female Sep-05RomaanaVally Senior Skills Planning Officer Indian Female Oct-11
To achieve our Strategic Plan, we need to attract, retain and motivate our employees. Our Board has appointed andmandatedaHRandRemunerationCommitteetoassistFasset in fulfilling its remuneration responsibilities. Our Remunerations Policy is designed to establish and maintain competitive,fair,equitableandmarket-relatedcompensationto attract, motivate and retain talented people. In addition to the total cost of employment package, Fasset offers an incentive scheme for exceptional performance based onperformanceagreements,whicharereviewedquarterly.
Employment Equity
The principles of Employment Equity are driven by ourrecruitment and selection policies. The composition of Fasset’s management team is in line with the Seta’scommitment to skills development and Employment Equity
(EE),notonlywithintheorganisation,butwithinthesectoras a whole. Occupational levels and grades are aligned withthesectorandreflecttheorganisation’scommitmenttomeetingitsHRneedsthroughclearlydefiningtherolesandactivitiesthatwouldberequiredtofillallrelevantpositions.DetailsareprovidedinTable8.
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Table 8: Occupational levels and grades
Occupational Category Job Title BandApproved Salary Bands
4/11-3/12
Senior Managers CEO COO
E3 E2
R1090000–R1937000 R870000–R1333000
Professionals FunctionalDirectors Managers
DU DL
R748000–R948000 R434000–R852000
Skilled technical Senior Officers Officers
CU CL
R317000–R455000 R225000–R405000
Clerks Assistants JuniorAssistants
BU BL
R181000–R257000 R123000–R244000
Elementaryworkers Attendants AU R58000–R97000
Training and Development
We have a Recruitment and Selection Policy and anEmployment Equity Plan (EEP) that drives human resourcesmanagement.We rely on the knowledge and training ofour employees to fulfil the obligations of our mandate. ThroughourEducationandTrainingPolicy,weensure thatour staff is upskilled to meet their development potential andcapacitatedtodeliveronourstrategicobjectives.Weencourage our employees to enhance their academic and professional qualifications through approved subsidisededucation at approved institutions. In 2011/12, weinvested R163 000 towards training and developmentopportunities in various strategic priorities ranging from IT, ManagementandLeadershiptoSafetyandWellness.Sevenstaff members are currently furthering their studies in areas such as management and leadership, office administration and specialist financial qualification as well as anotheremployee who is in her second year of doctoral studies. Our staff also attended the lifelong learning training interventions that are hosted by Fasset.
We also have an integrated performance managementsystem in place that includes individual performance contracts, personal development plans and quarterlyperformance reviews. The performance management system is aligned to our organisational strategy as well as an incentiveschemethat rewardsexceptionalperformance. Inthecomingyear,wewillengageinavalues-settingexerciseand culture climate survey as part of a broader strategic intent to enhance our employee value proposition and support organisational effectiveness.
WoRkInG WItH oUR SUpplIeRS
Weoperateinanincreasinglydynamicenvironment,whichrequiresustoensurethatweimproveourbusinessoperations
and maintain procurement discipline.We maintain soundsupplychainmanagementpracticesin linewith thePFMA,National Treasury and other applicable standards.
Weviewsupplychainmanagementasawayofcontributingto socio-economic development.Our supplierbaseconsistsof1126activesuppliers,ofwhich11%areBEEsuppliers.Arecord of all suppliers that are not specifically contracted, but are actively used by our business units within a 12-monthperiod,ismaintainedforpossiblefuturebusinessopportunities. For the year under review, our procurement spendamountedtoR91,5million.
Our commitment to transformation is not driven by compliance, but rather by a sincere commitment and desire to contribute to transformation in a way that can bring meaningfulchangetothelivesofallSouthAfricans.WearethefirstSetatoobtainaB-BBEErating.AlthoughitisnotarequirementforSetas,wewereassessedduringtheperiodunderreviewintermsoftheB-BBEEscorecardandobtainedaLevel3rating.Wewillcontinueoureffortstomakefurtherimprovements in this area as one of our focus areas for the new financial year.
Preferential procurement is a key thrust to empowerment, significantly encouraging transformation of the economy. Whilewecontinuetomakeeffortstotransformoursupplierbase, we recognise that greater attention needs to be placed on providing supplier development support to enable our suppliers to grow and remain competitive. In the coming year, we will assess opportunities and seek innovative solutions to enablemeaningful enterprise development support.Wearemindful of our suppliers’ need for thepromptpaymentof goods and services supplied. To this end, we ensure that payment for goods and services rendered is made in accordance with the terms and conditions of the contract within30(thirty)daysafterreceiptofaninvoice.
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Wehaveestablishedagovernanceframeworkthatsetsoutethical and sound procurement practices to be followed by staff members involved in the procurement of goods and services. This has enabled us to standardise procurement practices across our organisation. Ongoing training is provided to staff members involved in the SCM function to facilitate greater compliance and mitigate against risks.
InVeStInG In oUR CoMMUnIty
We operate within communities that are faced withincreasing socio-economic challenges such as poverty,unemployment and high HIV/Aids prevalence rates.Addressing these societal challenges requires stakeholderpartnership approaches and is no longer the sole responsibility of government alone. By the very nature of our mandate, we are focused on skills development to increase the number of new entrants in the labour market and in the Fasset sector specifically.Wedo this notonlyas a regulatory imperative but as part of our belief that
investing in skills development provides a key catalyst for people, particularly those in less fortunate circumstances, to lead more productive lives.
Social upliftment
The need for social upliftment is vast. As a Seta, ourmandate serves as the basis for our corporate social responsibility (CSR) agenda, which enables us to provide upskilling and training opportunities through the range of interventions suchas learnerships,workplaceexperience,access to occupationally-directed qualifications andcontinuous professional development as funded through our Mandatory and Discretionary Grants. As a publicentity, we are however constrained to go beyond this in terms of utilising public funds to support social causes and non-profitorganisationsworkingtowardsthedevelopment,empowerment and social progress of the broader communities in which we operate.
Fasset staff spending quality time with Refalletse primary School learners in orange Farm.
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Through our empathetic workforce, we have elected to demonstrate our corporate social responsibility and contribute towards community upliftment initiatives. For the year under review, we tentatively began putting in place a volunteers’programmethatisastaff-driveninitiative,whichfocuses on donations of time, materials and, in some cases, expertise.ThissawusidentifyingaschoolinOrangeFarmthatwewould like to ‘adopt’ and provide assistance on
a voluntary basis. Our activities in this respect included the donation of material such as clothes, furniture and computers, painting the classrooms and reading to Pre-PrimaryandGrade1learners.Weareintentonformalisingour relationship with this school and will formulate our CSR strategy for activities to be undertaken as part of our community outreach programme.
ADDReSSInG oUR enVIRonMentAl IMpACt
Issues of climate change are increasingly becoming commonplace. As a responsible corporate citizen, we aremindful of our direct and indirect impact on the environment and have begun placing focus on our behaviour to reduce our environmental footprint for the greater good.While ouroperations are primarily centrally located at our office in Johannesburg,wemaintain a regional presence through ourvarious initiatives and engage in business travel for Board, Committee and staff, which contributes to our environmental impact.
AsaSeta,wearealowenvironmentalimpactcompany.Ourenvironmental impacts can be categorised as direct impacts and indirect impacts. Both direct and indirect impacts are regulated through application of relevant legislation, subscription to voluntaryexternalregulations,andinternalself-regulation.Wereportonouractivitiesinthesetwodomainsasfollows:
Direct Impact
Our operations consume resources such as water, electricity, cleaningmaterials,paperandotherofficeconsumables.Wemaintain focus on managing the efficient use of these resources and reducing consumption, where possible.
Indirect Impact
Our consideration for the environment also extends toour indirect impact. As a provider of skills developmentinterventions, we are also mindful of our role in enabling the development and consumption of goods and services. Wetherefore have a role to play in ensuring that the growth and socio-economicdevelopmentisenabledinaresponsiblesocialand environmental manner. For us, this translates into both risk management and business opportunity development. Goingforward, we will engage in dialogue to assess opportunities for us to increasingly utilise our position to engage with our suppliers, service providers and delivery partners who offer goods and services that may have both positive environmental benefits and negative impacts such as printing operations. In the coming year we will put in place initiatives to address environmental education among our staff and committees to promote environmental awareness and the reduction of resource use at work and in their home environment. Wewill also commence with a process to calculate our carbon footprint with a view to managing our environmental footprint. This would culminate in the development of an environmental management strategy.
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In the coming year, we will continue to operate in line with our approved Strategic Plan and interface with a broad range of stakeholders as a good corporate citizen. In particular, we will place emphasis on the following objectives: • Focus on effectively growing our people and developing our talent aligned to business
needs to ensure effective employee engagement,• Continue to create value and meet stakeholders expectations to deliver on our mandate as
a Seta,• Effective resource management underpinned by culture of innovation,• Identify opportunities for suppliers to enable enterprise development support,• Formulate our CSR strategy and contribute towards social development causes through
our staff-driven initiatives,• Continue to measure and report our progress on creating stakeholder value and managing
risks, • Manage our direct and indirect environmental impact by defining our environmental
management strategy and calculating our carbon footprint, and • Continue to evolve our integrated reporting framework by mainstreaming sustainability
imperatives into our business practice.
Future performanceobjectives
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Appendix A: nSDS III tARGetS AnD ACHIeVeMentS
NSDSIIItargets and achievements
Note:OnlytheindicatorsthatareapplicabletoFassethavebeenincluded.
Goal 1: Establish a credible institutional mechanism for skills planning
No NSDS Output Output Description Fasset 2011 – 2012
TargetAchievement
Reason for Deviation
4.1.1 National need in relation to skills development is researched, documented and communicated to enable effective planning across all economic sectors
Capacity is established within theDHETtocoordinate research and skills planning
Share best practice withtheDHETandacross Setas
Copy of the presentation indicating content of best practice shared as well as research conducted has been made available to DHET
No deviation
4.1.1 National need in relation to skills development is researched, documented and communicated to enable effective planning across all economic sectors
Conduct research (internships, educational fees, SSP Update, grants analysis) to inform Sector Skills Plan (SSP)
Submit SSP for 2011to2016totheDHET
SSP produced, signed off by all parties, presented to Fasset stakeholders and submitted to the DHET
No deviation
Goal 2: Increase access to occupationally-directed programmes
No NSDS Output Output Description Fasset 2011 – 2012
TargetAchievement
Reason for Deviation
4.2.1 Middle-levelskillsneeds are identified and addressed in all sectors
Setas research and identifymiddle-levelskills needs in their sectors and put in place strategies to address them
Produce SSP for 2011to2016andsubmittotheDHET
SSP produced, signed off by all parties, presented to Fasset stakeholders and submitted to the DHET.
No deviation
4.2.1.2 Projectsareestablished to addressmiddle-levelskills in each sector
Fasset introduces a system of grants and introduces learning programmes to addressmiddle-levelskills in the sector
5382Learnersregistered on learnerships, LifelongLearning(LL),DevelopmentProjectsandAssessorinterventions
6719workersandunemployed people on interventions
The target was over-achievedduetomoreprojectsapproved at middle level than was planned for as a result of increased levies received duringtheyear..Amoderate increase of attendance at LLeventswasalsoexperienced.
Fasset Annual Integrated Report 2011-2012
85Appendix A
No NSDS Output Output Description Fasset 2011 – 2012
TargetAchievement
Reason for Deviation
4.2.1.2 Projectsareestablished to addressmiddle-levelskills in each sector
Fasset introduces a system of grants and introduces learning programmes to addressmiddle-levelskills in the sector
5288Learnerscompleted learnerships, LifelongLearning,DevelopmentProjectsandAssessorinterventions
6337workersandunemployed people on interventions
The target was exceededasaresult of greater proportion of learners achieving the DevelopmentProjectpassrateof70%..Amoderateincreaseof attendance at LLeventswasalsoexperienced.
5132Learnersfunded on learnerships, DevelopmentProjects,LifelongLearningandAssessorinterventions
6503workersandunemployed people on interventions
The target was over-achievedduetomoreprojectsapproved at middle level than was planned for as a result of increased levies received duringtheyear.Amoderate increase of attendance at LLeventswasalsoexperienced.
Goal 3: Increase access to occupationally-directed programmes
No NSDS Output Output Description Fasset 2011 – 2012
TargetAchievement
Reason for Deviation
4.2.3 High-levelnationalscarce skills needs are being addressedbywork-ready graduates from higher education institutions
Setas research and identifyhigh-levelskills needs in their sectors and put in place strategies to address them
Produce SSP for 2011to2016andsubmittotheDHET
SSP produced, signed off by all parties, presented to Fasset stakeholders and submitted to the DHET.
No deviation
3.2 Projectsareestablished to addresshigh-levelskills in each sector
Fasset introduces a system of grants and introduces learning programmes to addresshigh-levelskills in the sector
9413Learnersregistered on learnerships, LifelongLearning,DevelopmentProjectsandModerator Interventions
11838workersand unemployed people registered on interventions
The target has beenexceededdue to more projectsapprovedat high level than was planned for. This was due to increased levies received during the year which in turn contributed to more funding being made available to the development projectsfundingwindow.Amoderate increase of attendance at LLeventswasalsoexperienced.
Fasset Annual Integrated Report 2011-2012
86 Appendix A
No NSDS Output Output Description Fasset 2011 – 2012
TargetAchievement
Reason for Deviation
3.3 Projectsareestablished to addresshigh-levelskills in each sector
Fasset introduces a system of grants and introduces learning programmes to addresshigh-levelskills in the sector
8793Learnerscompleted learnerships, LifelongLearning,DevelopmentProjectsandModerator intervention
11189workersand unemployed completed on interventions
The target was achieved and exceededduetoproviders having exceededtheplacement target of70%.Therewasalso a higher intake of learners than wasplannedfor.Amoderate increase of attendance at LLeventswasalsoexperienced.
Fasset introduces a system of grants and introduces learning programmes to addresshigh-levelskillsinthesector
6643Learnersfunded on learnerships, DevelopmentProjectsandLifelongLearningand the Moderator interventions
8439workersand unemployed people funded on interventions
The target has beenexceededdue to more projectsapprovedat high level than was planned for. This was due to increased levies received during the year which in turn contributed to more funding being made available to the development projectsfundingwindow.Amoderate increase of attendance at LLeventswasalsoexperienced.
Projectsareestablishedtoaddresshigh-level skills in each sector
538learnersonSCGlearnershipsand bursaries
592learnersonSCGlearnershipsand bursaries
No deviation
Goal 4: Encouraging better use of workplace-based skills development
No NSDS OutputDescription of
OutputFasset 2011 – 2012
TargetAchievement
Reason for Deviation
4.5.1 Training of employed workers addresses critical skills, enabling improved productivity, economic growth and the ability of the work force to adapt to change in the labour market
Atleast80%oflarge employers submitWSPandATRclaims and impact is measured (baseline =52firms)
52largefirmssubmitWSPs/ATRs
69firmssubmitted No deviation
4.5.1 Atleast60%ofmedium sized employers submit WSPandATRclaims and impact is measured (baseline =96firms)
96mediumsizedfirmssubmitWSPs/ATRs
112firmssubmitted No deviation
Fasset Annual Integrated Report 2011-2012
87Appendix A
No NSDS OutputDescription of
OutputFasset 2011 – 2012
TargetAchievement
Reason for Deviation
4.5.1 Atleast40%ofsmallsized employers submitWSPandATRclaims and impact is measured (baseline =1160firms)
Support is provided to1160smalllevypaying firms.
Support provided to 1162firms
No material deviation
4.5.1 Cross-sectoralprojectsareestablished to address skills needs along local supply chains aimed at supporting local economic development
DevelopmentofFinancial markets andTaxqualification
Thequalificationswas developed and submitted to the Quality Council for Trades and Occupations (QCTO)
No deviation
Goal 5: Encourage and support cooperatives, small enterprises, worker-initiated, NGO and community training initiatives
No NSDS OutputDescription of
OutputFasset 2011 – 2012
TargetAchievement
Reason for Deviation
5.1 Partnershipprojectsto provide training and development support to small businesses are established in all sectors and their impact
Sectorprojectsaredeveloped that are piloted by Setas andexpandedthrough partner-ship funding for the development ofSMMEskillsasidentified in the SSP.
1100nonlevy-paying firms participate in skills development initiatives (baseline =1100)
Support provided to2755non-levypaying firms
Target achieved through the attendance of LifelongLearningevents and advocating Fasset membership benefitstonon-levypaying firms
5.2
Goal 8: Building career and vocational guidance
No NSDS OutputDescription of
OutputFasset 2011 – 2012
TargetAchievement
Reason for Deviation
4.8.1 Career paths are mapped to qualificationsinall sectors and sub-sectors,andcommunicated effectively, contributing to improved relevance of training and greater mobility and progression
Career guides are developed with labour market information from Setas, addressing sub-sectorswithintheir sector.
Career guide is developed for occupations across sectors in the economy. Comprehensive occupational profile of the sector and guide to employment opportunities in the sector should be included
The career guide was developed and includes information on career paths, professional bodies and information on the career
No deviation
Fasset Annual Integrated Report 2011-2012
88 Appendix A
No NSDS OutputDescription of
OutputFasset 2011 – 2012
TargetAchievement
Reason for Deviation
4.8.1 Career paths are mapped to qualificationsinall sectors and sub-sectors,andcommunicated effectively, contributing to improved relevance of training and greater mobility and progression
Career guides are developed with labour market information from Setas, addressing sub-sectorswithintheir sector.
Learnermarketingcampaign planned and implemented usingthefollowing:
- Learnerprintmedia campaign
- Attendanceatcareerexhibitionsnationally
- Online advertising
- Social media
- National distribution of the Fasset careers video
- National distribution of the Fasset careers guide
- Fasset brand ambassadors
- ViralCampaign
Anationallearnercampaign was developed to include print media, exhibitions,socialmedia and brand ambassadors targeting learners across the country fromGrade10onwards
No deviation
Fasset Annual Integrated Report 2011-2012
89
Appendix B:FASSet'S BoARD
Nam
e
Rep
rese
ntin
g
Org
anis
atio
n
Rac
e
Gen
der
25 M
ay 2
011
18 A
ugus
t 201
1
19 A
ugus
t 201
1
22 S
epte
mbe
r 201
1
24 N
ovem
ber 2
011
8 M
arch
201
2
Tota
l Mee
ting
sat
tend
ed
Par
tici
pati
on in
Wor
king
Co
mm
itte
es
Prabir Badal Employees Nehawu Indian Male û û 4of6 Remco ShahiedDaniels Employees SAIPA Coloured Male û 5of6 ARCAmandaDempsey Independent UJ White Female û 5of6 Finco; RemcoHolgerFischer Employers IDC White Male û 5of6 Exco;SP
(Chair)
SathieGounden Employers SathieGoundenAssociates
Indian Male û 5of6 Finco
KateHlongwane Employees Nehawu Black Female û û 4of6 SPCorné Karsten Employees PSA White Female û û û û 2of6DaisyKopolo¹ Employees ACCA Black Female û 5of6 ExcoSamanthaLouis Employees CIMA White Female û û 4of6 Exco;
Comcom (Chair)
Bongani Mathibela Employers BasamandlaConsulting
Black Male û û 4of6 Finco
Tsakani Maluleke Independent (Chairman)
Deloitte Black Female û 5of6 Exco
Stadi Mngomezulu Employers National Treasury Black Male û û 4of6 ARCMpuseng Moloi Employers JSE Black Female û 5of6 Exco;Remco
(Chair)Mopo Mushwana Independent LIBSA Black Female 6 of 6 Finco;
Comcom; SP
Seshni Samuel Employers Ernst&Young Indian Female û û û û 2of6 QA(Chairman)
Fasset Annual Integrated Report 2011-2012
90
Appendix C: WoRkInG CoMMItteeS AnD AttenDAnCe oF MeetInGS
eXeCUtIVe
Member Meetings Attended
HolgerFischer 4of5DaisyKopolo¹ 4of5SamanthaLouis 4of5Tsakani Maluleke (Chairman) 5of5Mpuseng Moloi 5of5
¹ ResignedMarch2012
FInAnCe
Member Organisation Meetings Attended
AmandaDempsey(Chairman) UJ 7of8SathieGounden1 SathieGoundenandAssociates 4of8Bongani Mathibela1 Basamandla Consulting 7of8Mopo Mushwana1 LIBSA 6of8
1 JoinedJune2011
CoMMUnICAtIonS CoMMIttee
Member Organisation Meetings Attended
Tyron Barnard KPMG 1of4AndrewCarlsson ICB 2of4JanineConnor SAIPA 1of4TsholofeloDihutso FPI 3of4ShameelaEssack2 CIMA 3of3SamanthaLouis1(Chairman) CIMA 3of3Mopo Mutshwana1 LIBSA 1of3
¹ JoinedJuly20112 ResignedJanuary2012
HR AnD ReMUneRAtIon
Member Organisation Meetings Attended
Prabir Badal Nehawu 1of2AmandaDempsey UJ 2of2Mpuseng Moloi (Chairman) JSE 2of2
Fasset Annual Integrated Report 2011-2012
91Appendix C
SkIllS plAnnInG
Member Organisation Meetings Attended
AbooAmod¹ IndustrialDevelopmentCorporation(IDC) 1of3AndrewCarlsson ICB 3of4AngelaForrest SAIPA 3of4AshleighAlistoun KPMG 3of4Stiaan Klue SAIT 1of4Noreen Kolbe RCS Cards 0of4Neo Mndebele JSESecuritiesExchange 0of4Stuart Noble FTC 1of4AnnalienCarstens¹ Altimax 0of2Fumani Nkuna PwC 2of4HayleyHynd VCA 2of4Nishi Karysingh Citadel 0of3LeighLucas IDC 3of3KateHlongwane³ SARS 1of2Mopo Mushwana3 LIBSA 1of2NishaDaya4 BassAME(Pty)Ltd 0of1NavinLasab5 SAIPA 0of2AngieOntong5 NT 1of2Thea Pelser PwC 4of4Khensani Mathonsi Deloitte 4of4HolgerFischer(Chairman) IDC 4of4Cindy Parvess ACCA 3of4AnabeladeRose SilicaFundAdministrationSolution 4of4Thabo Morgan SARS 0of4Thokozani Nongauza JSE 0of4Cilla Cinnamond Ernst&Young 2of4Christinah Papi² Deloitte 0of1Masindi Ramovha² MBDCreditSolutions 0of1EricaWassenaar Business Partners 2of4Tshepiso Nyatlo Sizwentsaluba 2of4Pradeshini Poovan MBDCreditSolutions 4of4
1 ResignedJanuary20122 JoinedJune2011andResignedJuly20113 JoinedJuly20114 ResignedDecember20115 JoinedOctober20116 JoinedJune2011andresignedJanuary2012
Fasset Annual Integrated Report 2011-2012
92 Appendix C
QUAlIty ASSURAnCe & leARneRSHIpS
Member Organisation Meetings Attended
AmosKova CIMA 2of4AndrewCarlsson ICB 3of4AngelaForrest SAIPA 2of4Bill Shellard IIA 3of4CarolineHall AAT(UK) 0of4CharleenDavids CIMA 2of4Clare Morley AAT(UK) 0of4EhsaanNagia IAC 4of4JacquiBaumgardt CSSA 3of4JanseMaritz ICB 1of4JoanettPienaar KPMG 3of4JohnBlignaut DefinitiveSolutionsTrainingcc 4of4JustineJohnson KPMG 1of3Krishan Nowrungsah¹ ACCA 1of1LawrenceChetty IIA 4of4Mmatsie Mpshane IRBA 1of4Pradeshini Poovan MBD 2of4RobinTDixie RobinTDixie&Associates 3of4SamanthaLouis¹ CIMA 0of1Shirley Olsen Master Business Services cc 0of4Stephen Sadie CSSA 3of4Stiaan Klue SAIT 2of4Teunis van Buuren SAIBR 2of4VashnaRawjee ATCOR 4of4Seshni Samuels (Chairman)² Ernst&Young 3of3NadineKater³ ACCA 2of2Trudy Paul4 AAT(SA) 1of1SuzieWebb4 AAT(UK) 0of1MarietjiedeWet Altimax 3of4
¹ ResignedMay2011² JoinedJuly2011³ JoinedOctober20114 JoinedJanuary2012
Fasset Annual Integrated Report 2011-2012
93
Appendix D:ORGANOGRAM - 31 MARCH 2012
ProjectsManager
Projects Assistant
Director of Skills Planning
Skills Planning Senior Officer
Skills Planning Officer -Grants
Skills Planning Assistant
Skills Planning Assistant
CHIeF eXeCUtIVe oFFICeR (CEO)
Director of Learnerships / ETQA
Learnerships /ETQA
Senior Officer
Learnerships /ETQA
Officer
Learnerships/ETQA Assistant
Learnerships/ETQA Assistant
CHIeF opeRAtInG oFFICeR (COO)
Operations Manager
Operations Officer
Operations Assistant
Receptionist
Office Attendant
Office Attendant
Communications Manager
PublicationsOfficer
(vacant)
Marketing and Communications
Assistant
Skills Planning Officer
Fasset Annual Integrated Report 2011-2012
94
Acronyms and Abbreviations used in this Report
AAT AssociationofAccountingTechnicians
ACCA AssociationofCharteredCertifiedAccountants
AGM AnnualGeneralMeeting
ASB AccountingStandardsBoard
ASSA ActuarialSocietyofSouthAfrica
ATR AnnualTrainingReport
AMG AssessorandModeratorGrant
B-BBEE Broad-BasedBlackEconomicEmpowerment
CEO ChiefExecutiveOfficer
CIMA CharteredInstituteofManagementAccountants
COO Chief Operating Officer
CSSA CharteredSecretariesSouthernAfrica
DHET DepartmentofHigherEducationandTraining
ETQA EducationandTrainingQualityAssuranceBody
Exco ExecutiveCommittee
Fasset FinanceandAccountingServicesSectorEducationandTrainingAuthority
FET FurtherEducationandTraining
GRAP GenerallyRecognisedAccountingPractice
GRI GlobalReportingInitiative
HRDSSA HumanResourcesDevelopmentStrategySouthAfrica
IAC InstituteofAdministrationandCommerce
ICB Institute of Certified Bookkeepers
ICSA InstituteofCharteredCertifiedSecretariesandAdministrations
IDC IndustrialDevelopmentCorporation
IIA InstituteofInternalAuditors
IIRC International Integrated Reporting Committee
IPAP II IndustrialPolicyActionPlanII
IRBA IndependentRegulatoryBoardforAuditors
IRCSA IntegratedReportingCommitteeofSouthAfrica
King III 2009KingCodeofGovernancePrinciples
LCG LearnershipCashGrant
MTSF Medium-TermStrategicFramework
NEHAWU NationalEducation,HealthandAlliedWorkersUnion
NLRD NationalLearners'RecordDatabase
NQF National Qualifications Framework
Fasset Annual Integrated Report 2011-2012
95Acronyms and Abbreviations used in this Report
NSA NationalSkillsAuthority
NSDS III NationalSkillsDevelopmentStrategyIII
NSFAS TheNationalStudentFinancialAidScheme
NGP NewGrowthPath
PFMA PublicFinanceManagementAct
PwC PricewaterhouseCoopers
QAP QualityAssurancePartner
QCTO Quality Council for Trades and Occupations
ROI Return on Investment
SAIBA SouthAfricanInstituteforBusinessAccountants
SAICA SouthAfricanInstituteofCharteredAccountants
SAIPA SouthAfricanInstituteofProfessionalAccountants
SAIT SouthAfricanInstituteforTaxPractioners
SAQA SouthAfricanQualificationsAuthority
SARS SouthAfrivanRevenueService
SCG StrategicCashGrant
SCM Supply Chain Management
SDLA SkillsDevelopmentLeviesActof1999(asamended)
SDL SkillsDevelopmentLevy
Setas SectorEducationandTrainingAuthorities
SMME SmallMediumandMicroEnterprises
SSP Sector Skills Plan
WSP WorkplaceSkillsPlan
FASSet AnnUAl InteGRAteD RepoRt 2011
We have produced our first integrated report. As part of our integrated report journey, we request all stakeholders to provide us with feedback. kindly indicate which aspects of the report added value, and areas where you would like to see additional information.
Format:
Content:
Insufficient detail:
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Name:
Organisation:
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Feedback Form
Complete the form and fax or email it to Fasset Call Centre:
Fax: (011) 476 5756Email: [email protected]
noteS
noteS
POBox6801,Cresta,2118Building3,GroundFloor,299PendoringRoad,Blackheath
CallCentre:0861010001E-mail:[email protected]
Web:www.fasset.org.za
RP149/2011
ISBN:978-1-77018-744-3
RP 176/2012
ISBN: 978-0-621-41012-9