year
3 February 2009
The Department of Labour ends its financial year for 2008/09 at the end of
next month looking forward to a challenging 2009/10. Following qualified audit
reports for the 2007/08 financial year for both the department and its two
funds, the National Skills Fund and Compensation Fund, the department spent
time improving its systems to ensure better accountability for public
funds.
The department will be implementing a new financial system (SAP) for the
National Skills Fund (NSF) starting from April 2009. The system will allow the
NSF to prepare its financial statements on an accrual basis, in line with the
South African Statements of Generally Accepted Accounting Practice, a departure
from the current cash or modified cash basis of preparation, which has earned
the fund audit qualifications in the last two financial years.
The department has also made substantial progress in resolving the
accounting framework for the NSF, an issue that also led to a qualification.
The department took a decision to list the NSF as a public entity and is
currently finalising a business case to formalise the listing process. The
accounting framework has also been addressed through the Skills Development
Amendment Act.
At operational level the NSF has also resolved issues around procurement of
service providers in one of its key training programmes, the Social Development
Funding Window (SDFW). Over the last two financial years the Auditor General
has raised a qualification on this programme on the grounds that procurement of
training providers was not in line with government supply chain policy. A new
database of training providers has been finalised ensuring that future
procurement will be in line with supply chain policy of government.
Regrettably, as a result of this requirement, the department has had to scale
down on training for 2008/09 resulting in a lesser number of the unemployed
people participating in skills development initiatives.
Related to this was the advances paid to unemployed people for their meals
and the R30 daily transport allowances while attending training. Due to
limitations on current systems (mainly BAS), the department was qualified for
not being able to reconcile allocated advances in time for the thousands of
trainees. This problem was also resolved paving a way for thousands unemployed
people to continue benefiting from this grant whilst participating in various
skills development initiatives.
Commenting on the NSFs prospect of acquiring a new system, Labour
spokesperson Page Boikanyo said today: âThe system brings with it the long
desired peace of mind where the fundâs primary responsibility of providing
skills development to unemployed would be discharged without any further
hindrance. We also look forward to a clean Bill of health when the 2008/09
audits are conductedâ.
Issued by: Department of Labour
3 February 2009
Source: Department of Labour (http://www.labour.gov.za/)
