SSP Brochure:Layout 1 - INSETA

The DoL requires all Councils to undergo evaluations and learning experiences so as to strengthen shortcomings and the performance ofSetas. In addition to this emphasis, DoL also requires Councillors to be actively involved in the organised bodies they represent so as toensure feedback to their constituencies. This latter aspect might require close consideration by Council.6. Financial ManagementAs all the published Annual Reports show, Inseta handles hundreds of millions of rands per year. The operational budget alone for 2007/8amounts to R17million. Management initiates, verifies and authorises all payments. Deloitte run the Inseta Accounting Office financial affairsof Inseta. In the past two years, there has not been any incident of fraud nor has there been any “qualification” by the Auditor General ofthe Inseta Annual Statement of Accounts.The Revenue Income of Inseta has progressed steadily:2004/5 R125.4 million2005/6 R135.9 millionThe projection for 2007/8 is R136millionDiscretionary Funds available as at 1 st April 2007 are estimated to be R50.2million of which, Council approved projects for R45million atits meeting in mid April 2007. In terms of its utilisation of Discretionary available funds, Inseta has a four-year average of 61% spend againstsurplus funds allocated. As regards Mandatory Grants to stakeholders, in 2005/6 an amount of R85.6million was paid (which includedmonies in respect of a previous year), and the projected claim for 2007/8 is R73.1 million.Council approved the Administration Operational budget for 2007/8 in November 2007. The approval of this business plan now will requiremanagement to effect minor redistribution within the approved budget and levy projections.As regards the managing of operational risks, mitigation plans are in place for the main risks that have been identified:1) Demand for funds higher than available allocation2) Stakeholder Non-Compliance3) Response & Delivery Shortcomings of ETQA Division4) Non re-accreditation of ETQA5) Lapses in service delivery by Deloitte & PWC mainly IT Support & Project Initiation6) No INSETA representation in five provinces7) Staff turnover8) Pressure to register non SSP priority unit standards9) Objection from Organised Business to INSETA’s 2007/8 Projects10) Lag in monthly reconciliation of invoices/RFP postingsRequest for Council ApprovalHaving discussed the full-length versions of the business plan with, and having received guidance thereon form Council, Management nowrespectfully presents this Executive Summary of the 2007/8 business plan for endorsement and approval by Council.INSETA Sector Skills Plan - page 63