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PRESENTATION TO LABOUR PORTFOLIO COMMITTEE 3 RD NOVEMBER 2009
PRESENTATION TO LABOUR PORTFOLIO COMMITTEE3RD NOVEMBER 2009
• Vision and Mission statement•Strategic Objectives• Governance structure
•Profile of Levy Paying Companies• Organizational highlights
• Organizational highlights on SLA
• Organizational Highlights on Learner Achievements
• Training layoff scheme • Financial performance
• Conclusion
Table of Contents
VisionWorldWorld‐‐class Education & Training for the Chemical class Education & Training for the Chemical
Industries Sector.Industries Sector.
MissionThe CHIETA contributes to sustainable The CHIETA contributes to sustainable
development through facilitating the provision of development through facilitating the provision of the skills for growth in the Chemical Industries the skills for growth in the Chemical Industries
Sector.Sector.
Strategic Objectives
•
Prioritize and communicate scarce and critical skills for sustainable growth, development and equity in the Chemical
Industries Sector.
• Meet or exceed the expectations of stakeholders and customers.
• Provide a multi‐dimension knowledge framework for education and training in the Chemical Sector.
• Attract, motivate and retain competent people.
Strategic Objectives cont.
• Establish and deploy consistent and supportive processes, systems, policies and procedures.
• Effective gathering and disbursement of funds for the benefit of the sector.
• Maximize organizational performance and development.
“THE BUSINESS IMPERATIVE OF THE CHIETATHEREFORE REMAINS TO ENSURE THAT
EDUCATION, TRAINING AND DEVELOPMENTMEET THE LABOUR MARKET NEEDS OF THE
CHEMICAL SECTOR AND THAT THEY ARE ALIGNED WITH THE PRIORITIES OF
REDRESS, ACCESS AND TRANSFORMATION”
CHIETA Governing Board
(9 Representatives each from Trade Unions & Employer Associations,up to 5 representatives from Government Departments, ProfessionalBodies, CEO and executives
on invitation by CEO)
Executive Committee
(Chairperson & Deputy Chairperson of Governing Body1 Representative each from Trade Unions and Employers and CEO with executives on invitation from CEO)
Functional Committees
•Audit Committee•Regional Committees•Joint Stakeholder Forum•Discretionary Grant Review Committee
Chamber 1
Petroleum
andBase Chemicals
Chamber 2 Chamber 3 Chamber 4 Chamber 5
Specialty ChemicalsAnd Surface Coatings
Explosives and Fertilizers
Pharmaceuticals &Fast Moving
Consumer GoodsGlass
Management Committee
CEO and Executive
Governance Structure
Profile of Levy Paying Companies
There are 5 Chambers for the 9 sub‐sectors
••
Petroleum and Base ChemicalsPetroleum and Base Chemicals
••
GlassGlass
••
Pharmaceuticals and FMCGPharmaceuticals and FMCG
••
Surface Coatings and Speciality Chemicals Surface Coatings and Speciality Chemicals
••
Fertilizers and ExplosivesFertilizers and Explosives
Levy Paying Companies by Chamber as per April 2009 Figures
600
282
437
69
195
0
100
200
300
400
500
600
700
Chambers
Petroleum & BaseChemicalsFMCG &PharmaceuticalsSpeciality & SurfaceCoatingsExplosives & Fertilizers
Glass
Num
ber o
fCom
pani
es
Levy Paying Companies By Sub‐Sector as per April 2009 Figures
0
50
100
150
200
250
300
350
400
450
Petrol
eum
Base
FMCGPha
rmacu
etica
ls
Specia
litySur
face c
oatin
gsExp
losives
Fertili
sers
Glass
Small
Medium
Large
Sub-Sector
Num
ber o
f C
ompa
nies
• Unqualified Audit by the Auditor General (AG) for 8 consecutive years.
• SAQA green status.
• Received an award from the SASCE (South African Society for Co‐operative Education).
Organizational
Highlights
• Established a national initiative of celebrating and recognising Grade 12 Maths and Science achievers, piloting
this in the North West Province.
• Awarded R 1 million in bursaries to 51 students addressing the needs of the Chemical Industry.
•Maintained our SABS ISO 9001:2000 certificate of recognition.
Organizational
Highlights
Organizational Highlights
“CHIETA continued (as confirmed by AG) to comply with the legislation relating to governance matters and adopted and
applied good governance practices throughout the year.”
Report of the Auditor General to Parliament (p.53 of CHIETA Annual Report)
Reporting Information
required
CHIETASLA Target for
2008/9
PercentageAchieved Comments
No. of persons who carry
out skills development
facilitation in the use the
guide 250 160% Target exceeded
No. of large firms received
WSP/ATR grants for
2008/09 financial year 100 112% Target exceeded
No. of small levy paying
firms supported by SETAs
for 2008/09 80 361% Target exceeded
No. of workers that have
registered ABET Level 1 to
4 400 Exceeded
The CHIETA has exceeded its five yearTarget of 4000 learners. By 01 April 2008,12691 (317%) learners had been registeredon ABET programmes.
No. of workers that have
entered learning
programmes 2 300 143% Target exceeded
No. organisations
supported by SETAs(NGO’s CBO’s, Co‐ops etc) 10 Exceeded
The CHIETA has exceeded of 14 fornon‐levy paying NGO’s and CBO’s.By 01 April 2008,40 NGO’s and CBO’shad been supported.
No. of unemployed people
that entered learning
programmes 800 302% Target exceeded
Organizational Highlights on DoL SLA Targets
Learner Achievements (Employed vs. Unemployed)
Employed/ Unemployed Learners
Num
bers of Learners
Learner Achievements per Province
Number of Provinces
Learne
rs
FINANCIAL PRESENTATION OVERVIEW FINANCIAL PRESENTATION OVERVIEW
•Annual Financial Statements and audit
results for 2008-09
•CHIETA financial highlights 2008-09
•Corporate Governance and expenditure
management
• Unqualified audit report
• 26,3% increase in SDL income
• Grant expenses accounted for 73% of grant levy income
ANNUAL FINANCIAL STATEMENTSANNUAL FINANCIAL STATEMENTS
AND AUDIT RESULTS FOR 2008AND AUDIT RESULTS FOR 2008--0909
-
50,000
100,000
150,000
200,000
250,000
SDL in R'000
YEAR
Skills development levy income
Admin levy income (10%) in R'000 13,840 12,865 13,110 14,104 15,704 19,383 23,026 23,605 30,226
Grant Levy income (70%) in R'000 26,295 90,082 104,647 113,025 126,043 135,943 153,846 165,389 208,587
2001 2002 2003 2004 2005 2006 2007 2008 2009
-
50,000
100,000
150,000
200,000
250,000
R'000
YEAR
SDL Income VS Emploer Grants and Project Expenses
SDL for Grants (70%) 26,295 90,082 104,647 113,025 126,043 135,943 153,846 165,389 208,587
Employer Grant and Project Expenses 23,159 70,253 76,627 116,390 91,844 196,204 141,560 122,125 152,742
Grants and Projects exp % 88% 78% 73% 103% 73% 144% 92% 74% 73%
2001 2002 2003 2004 2005 2006 2007 2008 2009
ANNUAL FINANCIAL STATEMENTS AND ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS FOR 2008AUDIT RESULTS FOR 2008--0909
•Total revenue increased by 31% from R221 million in 2008 to R291 million in 2009
•Total expenses as a percent of revenue -71% •Administration income within 10% legislated limit (R1.8 million saving)
•Consultancy / outsourcing expenditure at 0.55% of expenses
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
R'000
YEAR
Administration income vs Expenditure
10% Administration income 13,840 12,865 13,110 14,104 15,704 19,383 23,026 23,605 30,226
Administration Expenditure 3,872 10,216 10,339 13,374 15,555 18,655 21,241 22,041 28,386
2001 2002 2003 2004 2005 2006 2007 2008 2009
CORPORATE GOVERNANCE AND CORPORATE GOVERNANCE AND EXPENDITURE MANAGEMENTEXPENDITURE MANAGEMENT
•Audit committee oversight over financial management, risk and internal audit.
•Well established secretariat, executive and management structure
•Annual PFMA compliance and Governance review – No non compliance
•All reports and submissions required i.t.o. PFMA - submitted timeously with requisite quality.
•Effective, efficient and transparent systems of financial risk management and internal controls
Annual Financial Statements & Audit Results 2008‐2009
0
1000
2000
3000
4000
5000
6000
Number of member companies
Year
Registered and Levy paying companies
Total Paying
Total Registered
Total Paying 791 979 1064 1158 1265 1394 1460 1529 1581 1583
Total Registered 2826 3407 3783 4157 4581 5222 5348 5455 5536 5543
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
THANK YOU!
