Skills at Work Annual Integrated Report 2011 - 2012 2012_Draft 9-4.pdf · ContACt Det AIlS Fasset...

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


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


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


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


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.


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


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


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


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


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


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)


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



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



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



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



StAteMent oF CHAnGeS In net ASSetSFoR tHe yeAR enDeD 31 MARCH 2012

Not

es

Adm

inis

trat

ion

Res

erve

Empl

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Gra

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Res

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98

156

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8 -

42

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Surp

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tate

men

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inan

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Per

form

ance

--

-13049

13049

Allocationofunappropriatedsurplus

16807

24060

(17818)

(13049)

-ExcessreservestransferredtoDiscretionary

rese

rve

(6743)

(24111)

30854

--

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at 3

1 M

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201

1 5

62

105

5

5 03

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55

701

Surp

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Per

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68695

68695

Allocationofunappropriatedsurplus

14275

43768

10652

(68695)

-ExcessreservestransferredtoDiscretionary

rese

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(13763)

(43725)

57488

--

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201

2 1

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1

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123

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124

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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



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

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App

rove

d Fi

nal

Bud

get

Act

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Favo

urab

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vari

ance

2011

/12

2011

/12

2011

/201

220

11/2

012

2011

/12

R'0

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'000

R'0

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'000

R'0

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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

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--

108

108

Tota

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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.



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.



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.





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.




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




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.




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,




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



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.




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

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011/

2012

R'0

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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-


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


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



All

oCA

tIo

n o

F S

URp

lUS

Fo

R t

He

pRI

oR

yeA

R t

o R

eSeR

VeS

Empl

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Gra

nts

Rese

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Dis

cret

iona

ry R

eser

ve

Tota

l per

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t of

Fina

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l Per

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ce 2

010/

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R'0

00

Adm

inis

trat

ion

Rese

rve

R'0

00

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dato

ry S

kills

Gra

nt

R'0

00

Dis

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iona

ry

Gra

nts

R'0

00

Spec

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cts

R'0

00

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R'0

00

Tota

l

Dis

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ry

R'0

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Tota

l Rev

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224

689

27596

135537

54225

5

7326

61556

SkillsDevelopment

Levytransferfromnon-


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


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)




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




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




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




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.





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


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



8. IntAnGIBle ASSetS


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


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




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




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




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.




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.





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.

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161

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1052

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1052

(587)

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ThuthukaFull-TimeCTA*

1272

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145

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55

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3QualityAssurance

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198

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95

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2Pagamani1*

34

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--

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ThuthukaRepeatQEPartI*

2571

-(2161)

410

(368)

(42)

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StrategicMarketing*

335

(220)

(115)

--

--

-4.

2LifeLongLearning*

247

-(247)

--

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8LearnershipCashgrant*

5007

(5787)

780

--

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3860

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3841

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2SMMEIntervention-Fasset

SkillsAdvisors*

693

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--

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-1.

1ResearchLearnershipsand

LearnershipsDevelopment

1346

--

1346

-(340)

1006

-2.

7Abet*

450

(236)

(214)

--

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1Research(SectorSkillsPlan)*

180

-(180)

--

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-4.

2IRBA2010PPESupport*

836

(31)

(805)

--

--

-4.

2Bonani5WorkReadiness

Program*

17984

(11)

(17973)

--

--

-4.

2Pakhamani2AAT*

1793

-(1769)

24

(24)

--

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2Thusanani4WorkReadiness

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3557

-(3542)

15

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36

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5

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2.2

SMMEPilotGrant*

-2000

(65)

1935

(1935)

--

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2SMMEIntervention-Fasset

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-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)

--

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1TaxationLearnership

-1500

-1500

-(234)

1266

-4.

1LiteracyandNumeracy

Research*

-100

(100)

--

--

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2Bonani6WorkReadiness

Program*

-23308

(8016)

15292

(9)

(15283)

--

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-5039

(1566)

3473

-(3351)

122

88

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-1459

(620)

839

(27)

(812)

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IRBAPPEsupportprogram*

-855

(1)

854

(36)

(818)

--

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ThuthukaRepeatQE

2011/2012

-4318

-4318

-(3687)

631

604

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-1600

-1600

(1600)

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2DevelopmentProjects*

-10509

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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

-




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.


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



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




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)




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 - - - -



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.




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.




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.




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.




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.



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.




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.





Integrated Report

Index

ReportProfile 63

OrganisationalContext 64

StakeholderEngagement 65

The Fasset Board 66

Operations 68

StrategicImperatives 71

PrioritiesandObjectives 73

OrganisationalPerformanceandSustainabilityImperatives 74

FuturePerformanceObjectives 83


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


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.


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


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.


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


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


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


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.


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


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


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


74

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


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


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.



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



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.



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.



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.



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.



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.


83

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


84

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


TargetAchievement


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.


85Appendix A


TargetAchievement


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


The target was exceededasaresult of greater proportion of learners achieving the DevelopmentProjectpassrateof70%..Amoderateincreaseof attendance at LLeventswasalsoexperienced.

5132Learnersfunded on learnerships, DevelopmentProjects,LifelongLearningandAssessorinterventions


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


TargetAchievement


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.


86 Appendix A


TargetAchievement


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


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


87Appendix A



TargetAchievement


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



TargetAchievement


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



TargetAchievement


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


88 Appendix A



TargetAchievement


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


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)


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


Tyron Barnard KPMG 1of4AndrewCarlsson ICB 2of4JanineConnor SAIPA 1of4TsholofeloDihutso FPI 3of4ShameelaEssack2 CIMA 3of3SamanthaLouis1(Chairman) CIMA 3of3Mopo Mutshwana1 LIBSA 1of3

¹ JoinedJuly20112 ResignedJanuary2012

HR AnD ReMUneRAtIon


Prabir Badal Nehawu 1of2AmandaDempsey UJ 2of2Mpuseng Moloi (Chairman) JSE 2of2


91Appendix C

SkIllS plAnnInG


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


92 Appendix C

QUAlIty ASSURAnCe & leARneRSHIpS


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


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


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


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.

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Feedback Form

Complete the form and fax or email it to Fasset Call Centre:

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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

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