1 SUPPORTED EMPLOYMENT ENTERPRISES (SEE) (formerly

Transcript:1 SUPPORTED EMPLOYMENT ENTERPRISES (SEE) (formerly:
1 SUPPORTED EMPLOYMENT ENTERPRISES (SEE) (formerly known as Sheltered Employment Factories) Presentation on the Budgetary Review and Recommendation Report (BRRR) to the PORTFOLIO COMMITTEE ON LABOUR, 12 October 2016 2 Contents 3 Presenter: Silumko Nondwangu CEO: SEE 2015/16 Strategic Plan and APP Performance Indicators. Strategic Risks monitored in line with the Risk Appetite Model/ Framework. Expansion consultations conducted for the expansion of the SEF into Limpopo and Mpumalanga. Increased sales of goods and services in SEF. Increased gross profit margin SEF Marketing strategy reviewed and approved for implementation in line with the market, the Business Case and the Employment Services Act 4 of 2014. Production Standards developed and implemented in SEF. Financial security and sustainability achieved in line with the Financial Management Strategy. Procurements done in line with the SCM Policy. Increased sustainable work opportunities created for persons with disabilities, increased SEF capacity to 998 persons with disabilities employed in the SEF. Annual Performance Reports (2015/2016 and 2016/17) Annual Performance Reports (2015/2016 and 2016/17) Annual Performance Reports (2015/2016 and 2016/17) 8 Achievement in terms of targets on the performance information is at 63%, 5 out of 8 targets were achieved in the first quarter of 2016/17. We are on a journey to stabilise and re-energise our entity for long term sustainability and growth. We have approached the current year with optimism and are setting aggressive goals for progress. Success for SEE means a better life for people with disabilities in South Africa. Annual Performance Reports (2015/2016 and 2016/17) 9 Presenter: Spheni Ngcongo CFO: SEE 10 Financial Performance Overview for 2015/16 Financial Year Supported Employment Enterprises (SEE) is on an improved financial footing compared to a year ago. The entity achieved a net profit of R36,2 million for the year ended 31 March 2016 ( March 2015: R21,9 million). The findings that led to the qualified audit opinion: Cost of Sales/Inventory; and the receivables not recognised which emanated from the 2013/14 Financial year audit. These findings will be resolved as part of the implementation of the Audit Action Plan. It should be noted that AG expressed that they were satisfied with our costing model , which in the past, has been the basis for a qualified audit opinion. The entity has fully adopted GRAP 12 on inventories and the standard requires all direct and indirect manufacturing costs to be recognised as cost of sales, hence the high cost of sales as