contents - HEART Trust/NTA

Transcription

h e ar t t r u s t / n a t i o n a l t ra i n i n g a g e n c y
contents
Message from the Minister of Education and Youth
2
The Board of Directors and Corporate Governance Report
4
Chairman and Executive Director’s Report
8
HEART Gives Employers Healthy Return on Investment – ROI Study
10
The HEART Trust/NTA Corporate Operational Plan Results
11 – 16
Financial and Performance Charts
17 – 18
Performance of the National Training Programmes
19 – 22
Recruitment for the National Training Programme
The HEART/NTA Delivery System
Institution Based Training (ibt)
Community Based Training (cbt)
Enterprise Based Training (ebt)
VTDI
NCTVET
Technical High Schools Development Projects
Our Commitment to Lifelong Learning – Professional Guidance Information Services
New and Emerging Initiatives – HISEP
23
World Class Workers – NCTVET certification in Trinidad and Tobago
24
HEART Trust/NTA Values Icon
25
Workforce Intervention in Bauxite and Alumina Sector
26
Team Jamaica CD ROM
27
World Skills
27
Runaway Bay HEART Hotel and Training Institute
28
30 – 33
HEART Trust/NTA Success Stories
Senior Executive Emoluments
34
Auditor’s Report
35
Financial Statement and Accompanying Notes
36 – 62
HEART Trust/NTA Personnel
63
HEART Trust/NTA Headquarters and Regional offices
64
On the cover:
A portrait of HEART learning facilitators set against the background of an electronic thesaurus of key
words that underscore the Agency’s philosophy of Competency Based Education and Training (CBET).
2005–2006 Annual Report
the minister of
education & Youth
The National Training Agency, which falls under the
Ministry of Education and Youth, has embraced the national
imperative of preparing a world class workforce to take
full advantage of employment opportunities created by
emerging investments and to enhance the competitiveness
of local industry.
While HEART continues to focus on the major growth
areas of the economy in its training delivery options, the
Agency must be commended for efforts to improve the
early childhood education sector, life long learning and
prior learning certification. These remain critical areas at the
foundation of the national training system and will play a
pivotal role in the development of the ideal Jamaican and
CARICOM citizen worker.
HEART’s goal to train and certify at least half of the
Jamaica workforce by 2008 is relevant and timely. Already,
The HEART Trust/National Training Agency must be
commended for making significant strides in the
implementation of its revised model for Technical Vocational
Education and Training (TVET), which has widened access
to its training and certification programmes.
The Trust continues to make meaningful interventions
in the development of a trained and certified Jamaican
workforce through its Enterprise Based Training (EBT) model
that has reaped success in key sectors of the economy,
with the advent of the CARICOM Single Market (CSM), the
movement of skilled labour in the region requires high
levels of certification, and Jamaicans must be ready to hold
their own in the marketplace.
The Ministry of Education and Youth has every
confidence in the Board of Directors, Management and Staff
of the HEART Trust/NTA, to continue to invest in Jamaica’s
greatest asset – our people, and to empower them to take
their place as globally competitive workers.
particularly the services industry, manufacturing, hospitality
and construction.
— the hon. maxine henry-wilson, mp
minister of education & youth
training the nation
the learning facilitators of heart trust/NTA
Board of Directors
and Corporate Governance Report
Corporate Governance Practices
Corporate Governance Committee of the Board held eight
The Board believes that good corporate governance
(8) meetings during the review period. The role of the
is essential to the effective, efficient and prudent opera-
Corporate Governance Committee is to assist the Board
tions of the organisation. An operational environment with
in discharging its corporate governance responsibilities
strong corporate governance policies and procedures has
in accordance with the Public Bodies Management and
therefore been developed and is continuously being re-
Accountability Act, and to strengthen the Board’s corporate
viewed.
governance practices and policies while ensuring
In this regard, the Board is committed to maintaining
compliance with all applicable legislation and regulations.
sound ethical practices and conduct in all areas of opera-
The offices of Chairman and Executive Director contin-
tions, governing in compliance with applicable legislations
ued to be held separately over the period with a clear divi-
and regulations and acting in good faith and in the best
sion of responsibilities between the two. During the review
interest of the Trust at all times. Management is responsible
period the Board comprised one Executive Director and
for the daily operations of the organisation.
fourteen Non-Executive Directors.
In keeping with its oversight responsibilities for the
The Corporate Governance Committee is independent
direction and management of the affairs of the Trust, the
of management, comprising only non-executive Directors
carmen bromley
2005 board secretary
Julian robinson / greta bogues / sherine shakes / maria jones / wilbert williams / sherryl white-mcdowell /
dr rae davis vice chairman / alister cooke chairman / robert gregory executive director / james walsh / patrice samuels /
pauline knight / Frances madden / dawnett turner / vivian crawford / debbie-ann robinson board secretary/legal counsel
left to right
namely, Mrs Maria Jones, (who chaired the Committee from
Effective December 2005, the Board was supported
February 1, 2004 to June 30, 2005 having resigned from
by six (6) Board Committees: (1) Audit, (2) Finance (incor-
the Committee), Miss Greta Bogues (Chairman effective
porating Board of Survey), (3) Projects & Programmes, (4)
December 1, 2005), Miss Dawnett Turner and Mr. Wilbert
Information & Communications Technologies, (5) Human
Williams. In December 2005, non-executive Directors, Dr.
Resource, and (6) Corporate Governance Committees. All
Pauline Knight and Mr. James Walsh joined the Committee.
Committees were chaired by Non-Executive Directors.
The Corporate Secretary and Legal Counsel, Miss DebbieAnn Robinson is the Secretary to the Committee.
The Corporate Governance Committee carried out the
The Board was very active during the year and met
following major activities during the financial year:
twelve (12) times, and commenced the operational year
with seven Board Committees. However in October 2005,
• Reviewed the structure of all Board Committees with
a full review was done by the Corporate Governance Com-
a view to ensuring that committees supported the
mittee on the evolving roles and functions of all Board
strategic direction of the organisation while effectively
Committees, resulting in the merger of some committees
utilising the skills and knowledge of board members.
and the creation of new ones.
During the review period, the Board unanimously
approved the following recommendations of the
Committee which are now in force:
•Terms of Reference Manual for Board Committees
which captures the role, function and responsibili-
sandra glasgow
ties of each committee.
Incoming chairman
of the board
• Board Charter which details the full operations of the
Board and the Board’s corporate governance principles and practices. This Charter is now operational
and has been posted on the HEART Trust /NTA website.
•Compliance Check List developed by the committee for use by the Board to monitor legislative and
regulatory requirements. This was done based on a
detailed review of five Acts with accompanying regulations that directly impact the operations of the
Trust. These are the HEART Act, Public Bodies Management and Accountability Act, Access to Informa-
Subsequent Event
tion Act, Financial Administration and Audit Act and
On 1 September 2006, the Minister of Education and Youth
the Corruption (Prevention) Act.
appointed a new Board of Directors. The new Board will
• Reviewed suggested amendments to the Public
Bodies Management and Accountability Act. The
have responsibility for approving the financial statements
of the organisation as at 31 March 2006.
committee made recommendations which were
agreed on by the Board and submitted to the Ministry of Finance and Planning.
• For the second consecutive year, the committee prepared and administered the board evaluation ques-
Greta Bogues
chair – corporate governance committee
tionnaires which comprised two forms:
i. Board Members’ overall evaluation of the Board
ii. Board Members’ self evaluation
The Audit Committee is an integral part of the corporate
KPMG Peat Marwick & Partners analysed the responses
received and prepared a comprehensive evaluation of the
results which was received in June 2006. The newly constituted Corporate Governance Committee will examine
the report and make recommendations to the new Board
on mechanisms and strategies that can be introduced or
strengthened to further improve the Board’s performance.
The term of the current Board of Directors ended on 31
May 2006.
AUDIT COMMITTEE
governance process of the HEART Trust. The Committee
is established pursuant to the Public Bodies Management
and Accountability Act and assists the Board with its oversight function.
The Audit Committee provides an open avenue of
communication among internal and external auditors and
the Board of Directors. The Committee has the power and
authority to conduct investigations into matters within its
scope of responsibilities and to make appropriate recommendations to the Board for action.
committees
Specifically, the Audit Committee is
responsible for:
1.The integrity of the financial statements of the Trust;
2.The qualifications, independence and
performance of the external auditors;
3.The performance of the Trust’s internal audit function;
4.The adequacy and effectiveness of
the Trust’s risk management;
5. Assessing and advising the Board
on the Trust’s programmes and poli-
corporateaudit
financeinformationprojects &
governancetechnologyprogrammes
Vivian Crawford
a
Dr. Rae Davies
Robert Gregory
Greta Bogues
a
a
a
a
a
a
Malcolm Cameron
a
Christine Dickson-Edwards
a
a
a
Alvin Henry
a
Dr. Pauline Knight
a
a
a
Carole McDowell
a
ciency and effectiveness of internal
Sherine Shakes
a
controls over accounting, financial
Dudley Shields
a
Dawnett Turner
a
trative systems; and
a
cies regarding the adequacy, effi-
reporting, operational and adminis-
a
a
a
6. Advising the Board on practices
Donald Foster
a
and procedures which will promote
Julian Robinson
a
productivity and the quality and vol-
Michael HoSue
a
Jacqueline Leckie-Johnson a
Courtland Soares
a
dent of management and comprises
David White
a
non-executive Directors and other qual-
Sherryl White-McDowell
a
ified external professionals. Mr. Vivian
Anya Schnoor
ume of service of the Trust.
The Audit Committee is indepen-
Crawford is the Chairman of the Committee and the Committee met six (6)
times for the year. During the year the
a
James Walsh a
Wilbert Williams
a
a
Karen Gayle
a
viewing its terms of reference to ensure
Frances Madden
a
compliance with the requirements un-
Tom McArdle
a
Kenneth Morrison
a
Patrice Samuels
a
Joyce Wilson
a
Accountability Act. The new Terms of
Reference were approved by the board
and are now fully operational.
Vivian Crawford
chair – audit committee
a
a
committee was very pro-active in re-
der the Public Bodies Management and
human
resource
Colin Barnett
a
Patrice Samuels
a
aCommittee Chairs
aCommittee Members
chairman and
Executive Director’s Report
“As at March 2006, enrolment in all HEART programmes,
stood at 85,854, which was 40% more than last year’s figure
of 61,040. Importantly, since the rationalisation of the TVET
model, our enrolment has increased by over 100%.”
The HEART Trust/NTA is pleased to report another successful year
of operation during which we have further cemented the implementation of our developing Technical Vocational Education and
Training (TVET) Operating Model, which has greatly expanded access to training and certification.
The key indicators relating to certification targets, specifically
attainment of unit competencies, increased access to and enrolment in training, as well as, achievements by institutions of Accredited Training Organisation status, have all shown encouraging results. We also continue to enjoy technical services support
through the training and certification of assessors, the development of competency standards for qualifications, instructional
and other resource materials as well as the development and implementation of Information Technology (IT) systems.
As at March 2006, enrolment in all HEART programmes stood
at 85,854, 40% more than last year’s figure of 61,040. Importantly,
since the rationalisation of the TVET model, our enrolment has
increased by over 100% moving from 42,490 in March 2004, to
85,854 in March 2006. This puts us on target to achieve the goal of
training 100,000 persons annually by the end of 2008.
Institution Based Training (IBT) account for 54% of the training cohort for 2005/06 with 46,521, followed by Enterprise Based
Training (EBT) with 19,730 (23%), Community Based Training (CBT)
with 11,822 (14%), and other training options such as the Technical High Schools Development Project, Vocational Training Development Institute, and the TEAM Jamaica Programme combining
for an enrolment of 7,781 (9%).
The critical certification targets were also met as 10,742 individuals were certified by the National Council on Technical Vocational Education and Training (NCTVET) and were awarded the
“During 2005/06, the Trust also continued its special emphasis on
Enterprise Based Training, which is our direct intervention in the
workplace to upgrade, re-train and certify employees in order to
grow business competitiveness and productivity.”
National Vocational Qualification of Jamaica (NVQJ).
During 2005/06, the Trust also continued its special emphasis
on Enterprise Based Training, which is our direct intervention in
the workplace to upgrade, re-train and certify employees in order
to grow business competitiveness and productivity. The feedback
and participation of industry have been extremely encouraging
and we expect more firms and organisations to come on board.
With the advent of the Caribbean Single Market (CSM), there
has been heightened interest in the training programmes of the
Trust from our regional counterparts. The Trust received delegations from several CARICOM countries, all of whom were interested
in getting more information about our TVET system.
We also continued our partnerships with industry with major
training interventions in the bauxite/alumina sector, construction,
tourism and information technology sectors.
The US$1.3-billion expansion project for the JAMALCO Bauxite/
Alumina refinery also provided the National Training Agency with
the challenge of preparing workers for this important investment.
We wish to thank the management and staff of the Trust, as
well as members of the board, committee members, lead groups
and management advisory committees for their help as we seek
to fulfil our vision to create a Jamaican workforce trained and certified to international standards, stimulating employment-creating
investments, contributing to the improved productivity, competitiveness and prosperity of individuals, enterprises and the nation.
Alister Cooke
Chairman
Robert Gregory
Executive Director
heart Gives Employers Healthy Return on Investment
“Money well spent” says major ROI Study
A recent Agency-commissioned Return on Investment
Key Findings of the ROI Study
(ROI) Study has revealed that the HEART Trust/National
•TVET has a high impact on productivity growth, much
Training Agency is giving Jamaican employers good value
of it filtered through the non-wage sector of the
for money.
economy.
The study conducted by Drs Rosalea Hamilton and
Vanus James examined the private and social ROI in the
Agency, whose mandate is to build the competitiveness of
Jamaica’s workforce through the provision of training and
•TVET makes its recipients relatively secure from poverty
and, in contrast with other forms of education, extends
and sustains this security into retirement years.
•TVET reduces inequality, filling income gaps that
certification at international standards.
The Hamilton-James study concluded that the HEART/
NTA is making a significant difference in developing the
profile of the Jamaican workforce, and that the investment
in the development of our human resources through
HEART interventions is money well spent.
“The HEART Trust/NTA is a decidedly demand-driven
organization”, says Robert Gregory, who has served as
head of the Agency for the past 15 years. “HEART maintains
its relevance by involving its many stakeholders in the
formulation and delivery of its training and certification
programmes”, added Mr. Gregory.
Jamaican employers are the chief stakeholders in the
work of the HEART Trust/NTA. Their 3% payroll contributions
provide the mainstay for the Agency’s operations.
The ROI study also pointed out commendable rates
of returns in the tourism, construction, business services,
and garment industries; and underscored that Technical
would otherwise exist between the rich and the poor
in Jamaica.
•Partly through the reduction of inequality and partly
through its direct effects in increasing the average
number of years of schooling, TVET reduces crime and
the high costs of crime.
•TVET reduces migration and mitigates or offsets the
high costs of the brain-drain.
• More TVET leads to moderated family size, reduced
vulnerability and higher security of living conditions
for the family of the TVET graduate. In many cases, the
results generated by, say, HEART Level 1 occupational
training are better than those generated by secondary
Grade 11 education.
•TVET perpetuates its benefits into retirement by
Vocational Education and Training (TVET) increased
achieving the highest benefits during the years of
individual worker productivity and mitigated against crime
peak entrepreneurial energy in the mid-40s and again
by promoting improved income equity.
maintaining or raising income during retirement years.
10
The HEART Trust/NTA Corporate operational plan results
CORPORATE SCORE CARD 2005-2006
Report Card 2004 – 2005
Objec ti ves & Weight
strategies/objectives
1.
6 3 , 7 3 0 indi viduals
cer ti fied
A c t ual P er fo rmance
actual performance
YTD
YTD
Pe r fo rmanceindicators
Indicators
performance
1.1
Joint and Other Certifications achieved by 15,500 individuals
by 03/06
Weight 17
Source
Institution Based
Enterprise Based
Community Based
CIT
S U B TOT AL NP D
VTDI
THSDP & RTVETSS
HE A R T To tal
Secondary Schools
Other Providers & Individuals
Grand To tal
Target
11,369
2,899
3,824
434
18,526
1,330
1,534
21,280
750
2,000
24,030
Source
IBT
EBT
CBT
NPD Total
A c ces s t o t raining
programmes inc reased
Weight 14
Joint
5,087
575
1,338
7,000
2,058
9,058
Other
1,592
0
1,320
2,912
0
2,912
12,923 persons YTD or 99% of the year’s target
(13,048) achieved Joint/Other Certificates.
Dep t .
IBT
CBT
EBT
S co r
Wgt
weight/score
e
5
4.5
6
5.2
6
6
Joint
Other
4,457
2,600
1,424
419
10
2,150
HEAR T T ot a l (NPD )
Other Prog.
Total
5,891
1,863
5,169
-
7,754
5,169
6 1 , 4 6 8 per sons in to tal were cer ti fied. B reakdown below:
20,926 or 87% of year’s target achieved, an increase of 43% over last
year.
14,646 or 70.5% of years target achieve:
Sou rce
Institution Based
Enterprise Based
Community Based
CIT
S U B TOT AL NP D
VTDI
THSDP & RTVETSS*
HE A R T To tal
Secondary Schools
Other Providers & Individuals
Grand To tal
* Figures reported under Secondary Schools
1.3 Unit Competencies achieved by 24,200 individuals by 03/06.
2.
11,970 persons or 77.2%of target achieved Joint and Other certifications
to date, a decrease of 7% from last year. There was some shift during the
year from Joint certificates to Unit Competency certificates.
Sou rce
IBT
EBT
CBT
HE A R T To tal (NPD)
Other Programmes
Grand To tal
1.2 NVQ-J certification achieved by 24,030 individuals by 03/06.
Last Year ’ s P er fo rmance YTD
Previous year’s
2 0 0 4- 2performance
005
A c t ual
11,079
2,901
2,156
396
16, 532
1,349
0
17,881
653
2,392
20,926
28,572 persons or 118.05% of target achieved YTD, an increase of 60%
over last year.
Target
Sou rce
IBT
EBT
CBT
NP D To tal
13,747
8,928
1,527
24,202
A c t ual
16,211
9,561
2,800
28,572
Dep t
IBT
CBT
A c t ual
7,670
1,712
EBT
VTDI
HE A R T To tal
Secondary schools
Other Providers &
Individuals
Grand To tal
1,177
1,417
11,976
736
1,934
14,646
17,888 or 126.8% of target achieved.
Dep t .
IBT
CBT
EBT
Total
Uni t s
% A chieved
10,375
106.8%
1,470
58.3%
1,043
321.8%
17,888
126.8%
2.1
Higher-level enrolment increased from 8,819 in 2004-05 to
13,532 (increase of 53%) by 03/06.
Total of 19,755 enrolled in higher level training programmes in IBT, CIT
and the VTDI.
Total enrolment of 13,882 in IBT & CIT and the
VTDI.
3
3
2.2
Enrolment in NCTVET approved training programmes increased
to 87,000 by 03/06.
Total participation is 87,912, of which YTD HEART enrolment is 85,854.
61,040 persons enrolled to date or 106% of target
achieved. (43.7% increase over last year)
6
6
Source
Target
Institution Based
43,965
Enterprise Based
18,095
*Community Based
11,549
CIT
1,244
S U B TOT AL NP D
74,853
TPDCO Team Ja. (Private)
3,200
THSDP & RTVETSS
2,562
VTDI
3,700
HE A R T To tal
84,096
Secondary Schools
1,500
Other Providers
2,200
Total
87,796
CBT – also includes SDC & MOE Marginal Institutions.
IBT – also includes Breadnut Valley (JAMALCo) Project & TPDCO
Team Ja. Projects.
Source
Institution Based
Actual
45,551
% Achieved
103.6
Enterprise Based
*Community Based
CIT
S U B TOT AL NP D
TPDCO Team Ja. (Private)
THSDP
19730
11,822
970
78,073
1,759
2,268
109.0
102.4
77.9
104.3
55.0
88.5
VTDI
HE A R T To tal
Other
Total
3,754
85,854
2,058
87,912
107.8
102.1
9 3 . 5%
1 0 0%
Dept
Acads
VTCs
CBT
SL-TOP
Apprent.
*WIP
THSDP
VTDI
CIT
Enrol
20,461
14,568
8,913
4,600
695
4,961
2,395
3,804
643
% Achieved
96.0
101.8
82.4
95.8
105.9
330.7
116.0
135.1
122.5
TOTAL
61,040
CBT includes MOE, & SDC.
106.1
CBT also includes SDC, MOE Marginal Institutions, & TPDCO
programme.
IBT – also includes Breadnut Valley (Jamalco) Project & TPDCO
Team Jamaica Projects.
2.3 Thirty (30) new firms
partnering with HEART
institutions to provide
training by 03/06.
29 new partnerships for training formed
• EBT: 15 new firms brokered with HEART institutions for assessment and
training services YTD.
• IBT: Ten (10) new partnerships developed
• Strategic Workforce Development (SWD) Project partnering with 4 new
firms for training and assessment services: Solid Rock, Power Services,
Technology Innovation and Technology Institution
New Indicator
3
2.9
2.4 250 individuals at VTDI enrolled in
distance education programmes by 03/06.
VTDI: 257 persons enrolled in distance programmes contingent on
implementation of MCST-IDB project.
Total enrolment of 75 achieved due to cancellation of
MCST-IDB Project.
2
2
continue
11
1
3.
Exis ting Pa r tner ships
s t rengthened and New
Pa r tner ships de veloped
to e x pand ac ces s t o
t raining and
cer ti fica tion
actual performance YTD
Previous year’s performance
3.1 Qualification framework extended through MOEYC, UCJ,
Community Colleges and Universities by 03/06.
performance indicators
Less than desired results. Work in progress.
• Initiatives to increase certification through THSDP implemented
• New project with Montego Bay Community College approved for
Westmoreland ($1.8m)
• Further discussions about framework held by CTD with MBCC.
Equipment loaned to MBCC.
• Meeting held with Mo-Bay Community College to deliver the Construction
Site Manager, & Site Supervision programmes.
• Proposal submitted to manage Tech-Voc Unit of MOEYC.
• Six (6) representatives from Community Colleges and Teachers’ Colleges
participated in workshop in March 2006.
• MOU with Council of Community Colleges signed.
• Published Technical Operating Model - launched
in November.
• CTD appointed to UCJ
• Awaiting written confirmation from UWI regarding
their stated willingness to accept VTDI’s diploma
holders into its B.Ed. Distance programme.
• Consultations with UWI.
• Competency-Based Training in Tertiary Education
conference in planning phase
2
1
3.2 New partnerships with tertiary institutions initiated to reconfigure
one (1) programme within competency based framework by
03/06
Target not achieved--no“tertiary” level programme was reconfigured, but
work continues with:
• NCU to establish tertiary programmes in hospitality. Standards
development underway.
• Mo-Bay Community College to deliver the Construction Site Manager &
Site Supervision programmes.
• UCC about hospitality programmes. Awaiting responses from UCC.
New Indicator
3
1
3.3 Increased recognition and acceptance of qualification framework
locally (public, MOEYC, UCJ) and in the region through CANTA
(CVQ awarded) by 03/06.
NVQ-J and Qualification Framework promoted heavily to Jamaican
stakeholders:• Ongoing strategic relations with the JEF and employer groups. Executive
Director appointed to the JEF Board at the JEF Convention.
• Ongoing sensitization meetings with Ministry of Labour re HEART
programmes and entrepreneurial training.
• Ongoing career development fairs island wide and career Dev. Office
established in Sav-la Mar
• Extensive advertising and promotions programme- TV, radio, billboard
and bus advertising.
• Contract with St. Vincent to adopt framework in
development.
• CANTA Activities ongoing.
• CANTA/Cinterfor Agreement
• Over 100 Occupational Standards endorsed by
CARICOM as regional standards
• The NCTVET Caribbean Conference was held to
promote regional qualification
• CVQ explored with CXC via CARICOM
2
1.7
New Indicator
2
2
Weight 15
weight/score
Regional: Caribbean Vocational Qualification (CVQ) not yet awarded due
to delays at CARICOM level:
• MOU signed with St. Kitts & Nevis in February.
• Further meetings held with representatives from St. Vincent and the
Grenadines. An eight (8) member team carried out training for
instructors in MPCs for the Ministry of Education June 1 – 17th.
• Assessor training was conducted in Grenada during April 2005 by
VTDI and NCTVET
• Trinidad’s Education Ministry and National Training Agency made
contact with the HEART & VTDI, with a view of forming an alliance to
train/upgrade teachers in Trinidad’s Ministry of Education.
• Microsoft Partners in Learning Project implemented, includes regional
strategy.
• VTDI hosted ILO regional workshop on Instructional Technology.
• World Bank continues partnership efforts with regional strategy involving
qualification framework-working with OECS & HEART
• VTDI facilitated discussions exploring possibilities for collaboration with
representatives from Belize
• CANTA-paper with ILO on region
3.4 Partnerships for
training in three
sectors established by
03/06.
Five partnerships established in five sectors:
• Training partnership agreement signed with Building Innovation/Modern
Architecture and Technology Institute of Jamaica/Alframec – the
partnership is intended to impact the wider construction sector.
• CIT/National Land Agency GIS training partnership in process – training
of trainers started.
• Lift-Up Jamaica implemented, MOU drafted and under review-civil works
sector.
• Project with MOEYC and Spain in Tourism developed and submitted to
Ministry of Finance-hospitality sector.
• HEART~JASPEV Charter of Agreement signed-entrepreneurship-small
business.
3
Partnerships in development:
• MOU for Jamalco (bauxite) completed
• MOU between JAS~HEART drafted
• Completed letter of intent for partnership with AmCham & Entra 21 for
I.T. training.
• Follow-up on CIT/National Land Agency MOU and JAS
• TSD: Discussions continue with representatives from firms in the
Construction Sector.
4
continue
12
3.5
80% NVQ-J certification achieved by 1,011 Technical High
School 2004-05 enrolees in NCTVET programmes and at least a
5% increase in overall CXC pass rate for the 2004-05 cohort by
03/06.
3.6 Four externally financed partnerships for training/provision of
technical services developed and three implemented by 03/06.
- 919 students were registered for assessment – conducted in July.
-Schools reported 745 certifications, an 81% certification rate, which
represented achievement of 74% of target.
- CXC pass rate was 49% in Math, English, Science, and 62% in the 29
subjects sat.
88.66% of the 657 students assessed were
certified by NCTVET.
1 0 P ar tner ships de veloped YTD:
1. Project in tourism with MOEY & Spain
2. George Brown College, Canada to support seminar for HEART EC
instructors, June 06, under ECC/MOEYC /GBC MOU
3. IICD funds US$30,000 for JCUTE initiative
4. ICT4D Jamaica Communities without Borders Project. MCST agrees to
provide ICT equipment for CMCs
5.
New partnership in formation with AmCham & Entra 21 in ICT
6.
Follow-up request for JICA consultant to assess Automotive project
7.
MOU drafted and signed for: HEART~ NCTVET~ St. Kitts/ Nevis
8.
ICT4D Jamaica community-based ICT training programme proposal
submitted to the Japanese Grass Roots Fund
9.
Ebony Park/Manchester Horticultural Society project approved
10. JA$1M for JCUTE public-private sector partnership launch.
weight/score
2
1.2
6 developed ; 5 being implemented
2
2
• New Indicator
2
2
Average percentage pass for CXC was 64%.
Si x ( 6) projec t s in implementa tion:
1.
IICD funds US$30,000 for JCUTE initiative
2.
ICT4D Jamaica Communities without Borders Project. MCST provides
ICT equipment for CMCs Project approved
3.
MOU drafted and signed for: HEART~ NCTVET~ St. Kitts/ Nevis
4.
George Brown College, Canada to support seminar for HEART EC
instructors
5.
JA$1M for JCUTE launch from C&W Ja.
6.
CHASE: received $1.4m and released $3.4m, total = $4,843,360
4. Effective and efficient
management of resources
strengthened
Weight 10
3.7 Fifteen (15) new partnerships for community-based training
established to expand training with NGOs, CBOs etc. by 03/06
21 new CBT projects approved by Board, for 810 participants in 11
parishes, in 17 skill areas with a total of $33.2m committed. Projects were
focused on hospitality, early childhood and information technology.
4.1 Non-3% programmes and commercial enterprise activity earnings
increased to $318.28m by 03/06.
YTD actual is $332.07m; $13.79m or 104.3% of target and an increase YTD earnings $291m or 1 1 4 . 5% o f t arge t
of 14% 0ver last year.
2
2
4.2 Three percent (3%) collections increased to $J4.0b (a 35%
increase) by 03/06
YTD actual is $3.48b; $522.66m or 13.06% under target, but an
increase of 12.9% over last year.
YTD actual $3.083b or 106.3% of target
3
2.6
4.3 Budget variance of Agency not to exceed 5% by 03/06.
Income: YTD income is $3.94b; $480.85m or 10.87% under target
Income: YTD budgeted $3.239b – YTD Actual
$3.591b.
Variance $352m or 10.9% above budget.
1
.7
1
.6
Expenditure : YTD expenditure is $3.90b; $661.25m or 14.50%
under target
Su rplus/ De fici t: YTD surplus is $45.18m; 180.41% more than the
budgeted deficit of $135.22m
4.4 Policies, organizational arrangements and administrative procedures
to support expansion in TVET in place by 12/05.
Expenditure: YTD budgeted $3.517b – YTD
Actual $3.50b
Variance -$17m or .5 below budget (pre-tax)
• Capacity adjustments for hospitality and construction-approved at Board
Retreat.
• CBT strategic/expansion plan completed (budgeted 2006-07).
• Special Incentive changes approved by Board for implementation.
• New EBT procedural manuals done and in use. Strategic plan and
accreditation manuals being finalised.
• CBT and Level 2 Fees draft policy submitted for Board approval.
• Training and Assessment programme for TVET professionals being
developed.
• “Assessment centres” concept paper prepared and approved.
New Indicator
4.5 Average Agency audit rating of no less than 3.9 achieved by
03/06.
Average audit rating for 76 entities audited is 3.97
The Agency‘s average audit rating for 91 entities
was 3.92
1
1
4.6 MIS improved and fully implemented by 03/06:
- Document management system
• Document management system implemented and in use by Finance and
Personnel
• Online planning tool user-tested Adjustments to system completed and
workshop conducted for Senior Staff. Selected Operational Plans
uploaded on system.
• Online budget tool improved and in use
New Indicator
2
1.8
- Online Operational Planning module (Log Frame management tool)
- Online Budget development module improved
• Special Incentive Programme approved
• NPD & RPS re-organisation Implemented
• ITC restructuring completed
• PPDD commenced restructuring exercise with plan
approved in September. Job evaluation process
still incomplete.
5
Other Systems:
• Library integrated system being piloted at School of Cosmetology
• Implementation of Learning Management System for Community Based
Training and Enterprise Based Training in progress
• Maintenance module acquired and software installed for use by Building
& Properties Division
• System in place for ITC and NCTVET for customer service tracking
6
continue
13
5. Technical Services to Support
the TVET System maintained
Weight 14
5.1 500 Assessors trained and registered by 09/05.
5.2
Evaluation of TVET Business Model in firms by 12/05 and
decisions implemented by 03/06
5.3 Eighty (80) qualification plans developed and validated across six
industries by 03/06.
5.4 Learning Management System implemented and operational in all
institutions by 03/06
weight/score
622 assessors have been trained YTD.
456 assessors trained to-date representing 91% of
target.
2
1.3
Evaluation done. Recommendations being implemented in operational
systems.
Evaluation report on implementation phase done
Findings and recommendations were presented to
the Technical Committee.
1
1
Complete: 82 qualification plans completed across 19 sectors.
Competencies revised for four (4) occupational areas = 86
19 qualification plans revised in three (3) sectors
80 qualification profiles completed (100%) in
fourteen (14) skill areas.
2
2
VTDI and nine other locations implemented.
2
2
LMS implemented and operational at all IBT institutions as at March
2006.
In addition:
• Implementation in RPS completed and in user acceptance mode.
• EBT prototype completed and demonstrated.
• CBT needs analysis underway done –implementation training now
commencing
• External LMS training underway in some community colleges.
A new T-1 direct, secure Internet Access deployed
for NQR, LMS and e-mail
36 of 37 planned locations (95%) have Internet
access and two additional locations being added
5.5 Instructional materials developed /acquired to support competency
standards for 15 sectors by 03/06.
Completed:
• 215 learner guides completed for 17 sectors as follows: Metal
Engineering & Maintenance (15); Beauty Services (14); Livestock Rearing
(29); Crop Production (13); Hospitality (3); Early Childhood (25);
Information Technology (13); ICTs (16); Tour Guiding (8); Agro
Processing (8); Furniture Manu. (15); Apparel (15) Automotive (18) and
Business Services (7), Tractor Operations (3), Accounting (11), Nursery
Care Services (2).
• 162 learner guides provided done.
• Curriculum development for Police Services/Police Constables completed
• 136 learner guides placed on network. 50 curriculum CD duplications
done
• Trainer manual for Lift Up Jamaica completed.
Two hundred thirty five Learner Guides completed
for twelve (12) sectors.
2
2
5.6 Awareness of NVQJ certification and NVQJ certified workers
promoted among employers and potential customers by 03/06.
Numerous promotional activities increased awareness during 2005-06.
• Defined advertising programme marketing the “NVQ-J as passport to the
CSME”, etc. done.
• Major marketing and promotional events like “HEART in the Park” and
SDC Community Connect Series held and expos island wide.
• EBT Newsletters sent to all JEF members
• Promotion of EBT/NVQ-J at JEF Convention.
• HEART Trust/NTA- recipient of the “National Employer of Choice” Award.
• Participated in Rotary Club at West
• Expositions at: Frome; Ritz Carlton; Western Region; Bay West Shopping
Centre; and JTA Conference.
• Seminars conducted with stakeholders in Negril, Montego Bay and at
IRAE Convention – NCCU
• Sessions conducted for Total Care Learning Centre; Eastern School of
Practical Nursing
• “My NVQ-J” Press Campaign continued.
• Support of JEF for promotion of NVQ-J in firms
among employers and employees canvassed.
• New NCTVET Certification brochures designed
and edited.
• Promotional and staging support for Caribbean
Certification Conference Dec 1-3 in Kingston done
• JEF presentation held and MOU signed.
• Thirty-three seminars/presentations on
Qualification Framework held at different locations
for schools, training organizations and other
organizations.
• Exhibits of the new TVET model were done at
seven (7) functions/locations.
2
1.6
1.5
1
5.7 Entrepreneurship programme extended and strengthened in
fourteen (14) technical high schools by 03/06.
5.8
Career Guidance programme developed and implemented for the
TVET system and promotion of Lifelong Learning by 03/06.
One seminar held in July and August for teachers in technical high
schools. Some instructors from the Skill Training Centres also participated.
Thirteen persons received certificates of participation. Coaching session
conducted at St. Andrew High School
Curriculum implemented in all THS
• Lifelong Learning Policy completed and approved by Cabinet
• Review of procedures and practices implemented in institutions done.
• Annual Counsellors two-day retreat held in July at Runaway Bay HEART
Hotel.
• Planning Seminar held for counsellors.
• Career Centres implemented in all regions
• On line application and psychometric testing implemented
• New partnerships facilitate additional counselling
• Draft career programme document and evaluation instruments developed
for HEART Trust/NTA institutions. Career programmes for EBT & CBT redesigned.
Materials developed in draft for the two selected
industries (Business & Cosmetology) and refined
with Standards Unit
Four sensitisation workshops and two seminars
conducted. Eighty (80) teachers attended.
7
1.5
1.5
continue
8
14
6.
Quality of Training/Delivery
improved
6.1 Quality assurance systems improved and maintained system-wide
by 03/06.
Weight 9
The Quality Assurance system is effectively working.
Quality Assurance System is in place.
NCTVET:
• 123 programmes accredited in 22 organisations
• 123 auditors trained
• 93 Facility audits conducted
• 2 Assessment Compliance audits conducted across 26 ATO’s
• Technical workshops, consultations & Gap Audits conducted in 94
organizations
• 5 Regional Auditor/Evaluator Training Workshops conducted - 123
persons trained as auditors.
• Quality Assurance seminars conducted with EBT, IBT & RPS.
• ISO Training conducted
• Policy and Procedures Manual completed
• System fully implemented in 18 of the 26
institutions/centres.
• Annual Reviews in all ATOs conducted
• Critical assessment management audits, facility
audits conducted.
• QA Manuals for all Academies and VTCs developed
and to be finalised.
• Manuals for CBT being reviewed.
• Review of regional operations manual by RPS
underway and draft document being prepared.
• Manual for EBT at draft stage and completions
expected by February.
weight/score
2
2
3
3
Na tional Programmes Di vi sion:
• IBT: New quality assurance manuals reviewed and implemented by all
institutions.
• EBT: Quality Assurance team is working with the consultant to improve
the quality process
• All training programmes and assessments done since August comply
with new guidelines
6.2 90% certification rate achieved for HEART- financed programmes
by 03/06
All HEART financed training in NPD exceeds certification rate of 90%.
IBT: 96.1%
EBT: 99.8%
CBT: 97.9%
Ke y measure : NVQ-J Cer ti fica tion ra te s : IBT 92.2%, CBT,
97.2%, EBT 99.1%
VTDI: 1,349/1,600 = 84.3%
Overall Average pass rate stood at 93.1%
Dept
IBT
CBT
EBT
AVERAGE
Rate
92%
93%
99.6%
93.1%
Total cer ti fica tions = 5 3 , 6 0 5
Total completions = 5 5 , 4 6 8
Total ra te = 9 6 . 6%
7.
Relevance of Programme to
Labour Market and Social
Demand improved
6.3
ISO certification application and registration process for NCTVET
completed by 03/06
Application process is complete, all requirements in place for ISO registration
in July 2006.
− Quality Management Procedures documented
− Internal Audit Process established
− Steering committee meeting held and practice audit conducted.
− ISO Training conducted
− NCTVET staff sensitisation workshop
− Internal Audit Training
− Training in PowerWay Documentation
− 1 supplier audit conducted (Moore Tech)
Process is 45% complete due to late start.
• ISO “gap analysis” completed for NCTVET in
March
• Manager and documentation specialist appointed,
software purchased
• Presentation was made to the HEART Executive
team and funding approved by the Board in
October 2004.
2
2
6.4
Instructor Quality Service programme (IQSP) average score of 90%
achieved for
instructors by 03/06.
Average score for all locations is 89.04
Average score for first three quarters is 88.2%
2
2
Employers’ requests for services increased by 15% or to 7,760
by 03/06.
8,375 requests received from firms YTD.
This is 107.9% of target for year, and an increase of 24%.
• RPS: 6,023 requests received.
• EBT: 2,352 requests received.
6,748 requests received to date through EBT &
RPS. This represents a 63% increase for the year.
(142% of target).
EBT
1,990
RPS
4,758
Total
6,748
2
2
7.1
IBT: Average score for three quarters – 88.38%
CBT: Average score for three quarters – 91.83%
Weight 10
9
7.2
Training capacity adjustment plan completed by 03/06.
Completed.
− IBT: Proposals reviewed and approved by Board in Oct
− CBT submitted expansion plan for budget-approved
New Indicator
2
2
7.3
Training needs analysis completed by 03/06.
Six important analyses conducted:
• Tourism supply-demand projections updated and shared with OPM
• Construction projections developed and shared
• Bauxite projections updated
• Final sector report on ICT completed and submitted
• Processed new data on Tourism expansion via JAMPRO and PIOJ
• Labour Market Analysis contract executed and initial results received
• Needs analysis conducted for investments in
bauxite and tourism
• Information Technology study in progress)
• Analysis of VTC offerings completed
• Food Processing studies in design stage
• 4 community profiles completed
3
3
Total placements = 4,629 (85% of target)
YTD: Actual 4,686 completers placed (130% of
target)
2
1.7
New indicator
1
1
7.4 Job placement rate increased by 15% over 2004-05 by 03/06
(4,686 placed last year)
Decrease of 1.2% from last year’s actual.
7.5 HISEP certification system developed and implemented by 09/05.
Certification pilot system developed and implemented in 10/05.
− Certification Plan and grading system developed and still being
piloted.
− Ongoing feedback has resulted in further changes and materials
revision is 76% complete and will be ready for next iteration in June
2006.
- Approximately 3,000 items written and submitted for vetting.
- Data banks created for 3 subjects – Language, Mathematics and
Society & Citizenship.
- HISEP promoted in Negril, Montego Bay and Kingston.
- Three day Item writing workshop held for all five HISEP subjects in
July.
continue
15
stratergies/objectives
8. Strategic Human Resource
Planning Development
Programmes strengthened
and expanded
8.1
Weight 11
8.2
85% Instructor corps with diploma pursuing degree Level
certification by 03/06.
76% of instructor corps either possess or pursuing degree level certification
degree
69% of instructor core with diploma were pursuing
degree level certification. Of the 119 Instructors
who pursued degrees, 18 were sponsored during
the year.
2
1.8
Completed training of Managers in:
− New Business Model Appreciation
− Introduction to Assessment Managers)
Completed training of Training Agents in:
− Microsoft Project (24 persons)
− Proposal Writing.(30 persons)
In addition:
− Competency gap analysis conducted for EBT
staff 12/04.
− Instruction Systems Design training held for 19
members of staff from LRDU, ETMU, VTDI and
NPD 03/05.
− Process definition workshop held with EBT in
02/05
− Leadership development programme
implemented for 25 Directors/ Managers
01/05.
− Study tour conducted by RPS
Director/Managers to Sacramento and California
State University Career Centres 10/04.
− 136 Employees trained as Assessors between
04/04 and 03/05.
− Instructors currently on Scholarship in Japan,
pursuing a Diploma in Welding.
2
2
Seven instructors approved for degree programmes YTD.
Programmes/ initiatives implemented to support organization
restructuring and training capacity realignments under the
Revised TVET Model by 03/06.
−
−
−
−
−
−
−
−
Leadership development programme ongoing.
Process improvement consultancy completed identifying key
processes to improve
Customer Service needs analysis and training completed for all
Regional Offices.
Strategic planning sessions facilitated for EBT. Proposal requested
and received from training provider to offer Public Speaking and
Grooming for EBT staff.
Training needs instruments developed, discussed and
administered to RPS staff.
Training needs analysis completed for RPS staff. Training
schedule completed in September and commenced in October.
Courses include PowerPoint, Publisher, Access, Excel, Oral
Presentation/Public Speaking & SPSS
Training delivered in SPSS for 12 members of staff
Training providers identified – delivery of SPSS, Time
Management and Operations Management Training for EBT
Department being discussed.
weight/score
8.3
NCTVET /NVQ Level 5 Qualifications developed for instructional
personnel by 30/06.
Complete: Qualification plans completed by NCTVET for Instructor Level 5
qualification in 03/06
New Indicator
3
3
8.4
Results and recommendations of 2005 Employee Satisfaction
Survey addressed by 03/06.
Completed. Detailed report shows initiatives undertaken in 7 areas of
employee satisfaction:
− Leadership-values integration, change management & mentorship
programme + continued leadership training.
− Communication-improved web pages, phone services
− Customer Care-draft customer care charter
− Performance Appraisal-system revamped for 2006-07
− Salaries & Benefits-PWC conducted review, recommendations
approved.
−
Training-implementation of staff development plans, job enrichment
aimed at non-management
− Staff Welfare-survey on EAP, regional Wellness Committees and
Newsletter established
79 .1% Employee Satisfaction reported
2
2
8.5
Competency assessment included in performance appraisal
instrument by 03/06.
New instrument completed in August 2006.
New Indicator
2
2
100
91.1
TOTAL SCORE
11
16
22000055––22000066 AAnnnnuuaall RReeppoorrtt
performance
of the National training programme
percentage enrolment training programmes
2005/2006 fiscal year
Information & Communications
Technologies18%
Machine & Appliance
Maintenance/Repair 3%
Other 7%
Hospitality 20%
Pre-vocational/Continuing
Education Programmes 2%
Transport/Auto Trade 4%
Agriculture1%
Apparel & Sewn Products 3%
Early Childhood Care 3%
Art & Craft 1%
Beauty Care Services Skills 2%
Building & Construction 13%
Commercial 22%
Cabinet Making 1%
enrolment figures
completion by broad training programmes
last 5 years
2005/2006 fiscal year
33,674
87,812
42,490
number enroled
10,000
35,000
9,000
34,500
8,000
34,000
7,000
33,500
6,000
33,000
5,000
32,500
4,000
32,000
3,000
31,500
2,000
31,000
1,000
0
30,500
2001
2002
2003
2004
2005
Institutional
Enterprise
Community
Based Training Based Training Based Training*
VTDI
Team
Jamaica
Technical
High School
Development
Caribbean
Institute of
Technology
* Community Based Training comprises HEART partnerships with a wide range of business, social and civic groups, in addition
to special intervention programmes with the Ministry of Education and Youth and the Social Development Commission.
17
financial perspective
2002 – 2006 (J$000’s)
2002
March
2003
March
2004
March
2005
March
2006
March
2,353,805
2,616,835
3,188,062
3,590,684
3,976,494
347,307
343,790
361,303
455,064
503,717
DIRECT PROGRAMME DELIVERY
1,827,437
2,060,335
2,529,119
3,045,425
3,371,026
TOTAL EXPENDITURE
2,174,744
2,404,125
2,890,422
3,500,489
3,874,743
179,061
212,710
297,640
90,195
101,751
174,833
41,977
58,093
272,033
264,319
289,518
REVENUE
CENTRAL ADMINISTRATION
SURPLUS before TAXATION
SURPLUS after TAXATION
CAPITAL EXPENDITURE
114,425
207,816
J$000’s
4,000,000
3750,000
3,500,000
3,250,000
3,000,000
2,750,000
dollars
2,500,000
2,250,000
2,000,000
1,750,000
1,500,000
1,250,000
1,000,000
750,000
500,000
250,000
0
RevenueCentral
DirectTotalSurplusSurplusCapital
AdministrationProgrammeExpenditure
Before
AfterExpenditure
DeliveryTaxationTaxation
2002
18
2003
2004
2005
2006
performance
of the National training programme
The National Training Programme and the operations of
with some 1,175 employers making payments for the first
the HEART Trust/NTA continue to be funded mainly by the
time.
financial support of Jamaican employers through their 3%
Recruiting for the National Training Programme
payroll contributions.
During the period under review, 34 Corporate Audits
The Regional Programme Services (RPS) Department facili-
were completed and outstanding amounts of $30 million
tated the recruitment and enrolment of 76,771 applicants
were identified. Of this amount, $11.038 million were
in all HEART-financed training programmes, which was 3%
collected, while officers of the Compliance Department
above target.
were successful in collecting some $127.87 million in
audited arrears from delinquent contributors.
The programmes of the National Training Agency
were marketed to various public and private stakeholders
Over 10,000 employers made contributions of $3.486
through a series of workshops, seminars, meetings, stake-
billion to the HEART Trust Fund for the period 2005-2006.
holders’ consultations and expositions. All four regions con-
This represented an increase of 13% over the previous year.
tinue to offer career and counselling services.
The contributor base was widened for the review period
front left to right
Christine Dickson-Edwards senior director HEART Trust Fund / pamella mckenzie national programmes director / Paulette dunn-smith senior director NCTVET
back left to right
tom mcardle senior director – planning and project development / donald foster chief technical director / robert gregory executive director /
colin barnett senior director – human resources planning and development / michael hosue chief information officer
19
The HEART Trust/NTA Training Delivery
In addition, 141 new programmes were implemented, with
System
51 new ones receiving accreditation.
The HEART Trust/NTA’s Training Delivery
In response to the thrust in the Hospitality
System is an islandwide network comprising
and Construction Industries, the institutions have
three main modalities:
adjusted their training plans to meet the new
•Institution Based Training (IBT) in 26
and emerging demands in the labour mar-
academies, institutes and vocational train-
ket. The instructor corps continues to be
ing centres
strengthened with over 70% of the group
•Community Based Training (CBT) in over
enrolled and/or upgraded to degree level
100 projects and partnerships with com-
programmes to facilitate higher level training.
munity groups, churches and NGOs across
A total of 11,079 National Vocational Qualifi-
the island.
cation of Jamaica (NVQ-J) certificates were
•Enterprise Based Training (EBT)
achieved by learners in IBT for the year ended
includes industry interventions, work-
March 31, 2006. Of this number 7,028 were at
force improvement through training and certification,
level one, 3,443 at level two, 576 of level three
and the school leavers and traditional apprenticeship
and 24 at level four.
programmes.
Additionally, the Technical High Schools Development
Community Based Training
Project delivers training to the nation’s fourteen technical
The HEART Trust/National Training Agency continues to
high schools and the TEAM Jamaica training programme
forge key partnerships with well over 100 Community
conducted in conjunction with the Tourism Product Devel-
groups including non-governmental organisations (NGOs)
opment Company (TPDCo.) prepares workers for the hospi-
and churches to offer many of its training and certification
tality sector. Training and certification of trainers and pro-
programmes, which lead to the awarding of the NVQ-J.
fessionals from all the major economic sectors is also done
at the Vocational Training Development Institute (VTDI).
Community Based Training (CBT) is only conducted
where there is an identifiable visible economic activity, or
an assurance that benefits will come immediately after
Institution Based Training
The Institution Based Training (IBT) Department
training.
A total of 11,822 persons were enrolled in the period
comprises 26 training institutions – 10 Acad-
and an average pass rate of 97%. NVQ-J certification was
emies and 16 Vocational Training Centres.
achieved by 2,035 persons, while 2,800 persons achieved
The enrolment in IBT programmes for the
unit competencies. CBT maintained 253 partnerships and
fiscal year stood at 45,551 was 30% higher
97 new partnerships were developed by 69 projects.
than the 35,209 for the previous fiscal year.
The certification rate was 98%.
Enterprise Based Training
All the programmes within the institu-
The year in review saw a total of 18,428 persons enrolled
tions that were previously accredited have
in Enterprise Based Training (EBT) Schemes, an increase of
maintained their status. Forty-two new off-
80% over the previous year. The certification rate was an
site locations were established during the pe-
impressive 99.78%. EBT programmes embraced the tradi-
riod and 82 new partnerships were formed.
tional school leavers, apprenticeship and workforce devel-
20
opment programmes and presentations were made to 229
under the theme “Creating a new knowl-
firms during the period.
edge base for education and training”,
27 companies were referred for certification as Accred-
and led Jamaica’s first team to the 38th
ited Training Organisations (ATOs), while over 100 were au-
World Skills Competition in Helsinki, Fin-
dited and found suitable for assessment to be conducted
land.
at their location.
A total of 544 companies participated in the on-the-job
NCTVET
work based training and certification programmes with
The National Council on Technical Voca-
3,554 trainees gaining work experience. Almost 2,400 en-
tional Education and Training (NCTVET)
terprises made requests for EBT services during the year
established eight new lead groups, which
under review.
led to the formation of 18 technical teams.
A total of 842 competency units were devel-
VTDI
oped across 16 sectors and 123 programmes
The Vocational Training Development Institute (VTDI),
were accredited in 22 organisations.
the tertiary arm of the HEART Trust/NTA had an enrolment
Technical workshops, consultations and gap audits
of 3,754 students in its established programmes during the
were conducted in 94 organisations and annual reviews
fiscal year, with 1,349 gaining full certification.
were conducted to confirm compliance of accredited pro-
The Institute held several workshops and clinics focus-
grammes with accepted standards.
sing on Information Communications Technologies and
The NVQ-J certification was awarded to 15,741 persons.
Distance Education. The VTDI formed a Distance Education
In addition, 8,139 applications have been processed for NC-
Unit and three courses were developed in the online for-
TVET/Joint certification.
mat: Educational Psychology, Educational Administration
and Curriculum Development.
The Council signed a Memorandum of Understanding
(MOU) with the Early Childhood Commission to address the
The Beauty Services Bachelor of Education and the Associate Degree programmes in Fashion Designing and Merchandising were developed and submitted to the
need to sustain quality training products and services for the Early Childhood sector.
It also hosted the international Biennial
Curriculum Committee. A programme map was
Conference of the Association of Common-
also developed for the Technology Resource Tech-
wealth Examination and Accreditation Bod-
nologist Diploma programme.
The
Entrepreneurship
ies (ACEAB), at the Sunset Jamaica Grande
Diploma
pro-
gramme was accredited by the University
Resort in Ocho Rios.
The NCTVET is a full member of ACEAB
Council of Jamaica and the review and re-
and Jamaica was the fifth host of the Biennial
structuring exercise for the Entrepreneurship
Conference, following in the footsteps
and Business Development Programme was
of New Zealand, Mauritius, Malta and Fiji.
completed.
Delegates from several Commonwealth
The VTDI also made a request to the NCTVET
countries attended the conference, where
for the development of standards for the Instruc-
the NCTVET’s Senior Director Paulette Dunn-
tor Training Programme at NVQ-J Level 5.
The Institute hosted its annual research day
Smith was re-elected as the Vice President of
ACEAB.
21
The Council joined the Ministry of Health to launch the
and implementation of career development
new competency standards for health care assistants
programmes and in the promotion of lifelong
(formerly Practical Nurses).
learning for all working age Jamaicans.
The new competency standards clarify and
The Career Development Initiative Pilot
define the roles of persons in practical nursing
Project was officially launched at a ceremony
in relation to those of registered nurses.
in Kingston to motivate all 74 students participating in the programme from both Cumber-
Technical High Schools Development
land and Edwin Allen High Schools. Several
Project (THSDP)
meetings were held with principals and vice
The THSDP continues its vision to refocus and
principals during the year to get their input
reposition Jamaica’s 14 technical high schools to
and feedback.
make them centres of excellence, and providing
Five workshops were held for the 35
the country with a larger pool of graduates with
teachers of both schools to assist them in using the
NVQ certification.
career development methodology.
During the last fiscal year, there was a 59% in-
A series of meetings were also held with the Jamaica
crease in the number of students registered for as-
Social Policy Evaluation Programme (JASPEV) resulting in a
sessment by the NCTVET and of this number, 81% of them
Memorandum of Understanding to facilitate participation in
obtained NVQJ certification.
the continuing education component of the programme.
Seven schools have applied to NCTVET to receive
PROGIS also held a National Lifelong Learning
Level 1 accreditation status and their applications are being
Conference and Youth Forum with over 800 participants.
reviewed by the Standard and Monitoring Unit. Twenty-
Professor Robert Fryer, National Director for Widening
eight workshops sessions were conducted in the schools
Participation in Learning in the United Kingdom was the
to improve the teaching of mathematics and English
main presenter.
language.
Partnerships were maintained with several private and
There was an 11% average increase in CXC entries and
public sector organisations and preliminary discussions
the schools have been implementing the Reading Improve-
began with the Social Development Commission in a bid to
ment Programme “Read Today, Survive Forever” which was
develop a partnership in the Lifelong Learning Public
developed by the THSDP.
Awareness Programme.
During the period, a total of 19,221 pieces of career
Our Commitment to Lifelong Learning
materials were disseminated to schools, private
Professional Guidance Information Services (PROGIS)
and public institutions, teachers, counsellors and
During 2005/06, the Professional Guidance Information
students. These materials included newsletters,
Services Unit continued to provide technical assistance to
comics, posters, handouts, booklets, pamphlets,
the training and education system in the development
passports and leaflets.
22
New and Emerging Initiatives
Lifelong Learning & the High School Equivalency Programme
The National Training Agency has
With vast innovations and rapid
sharpened its focus on creating a cul-
changes in technology, where infor-
ture of life long learning in its institu-
mation and telecommunications have
tions, communities, and in workplaces
become most critical to social and eco-
across Jamaica. The emphasis on
nomic success, individuals have to be-
promoting a learning society comes
come lifelong learners in order to remain
against the background of emerging
relevant.
international trends, which require the
The work of the Focus Group will
upgrading of skill sets in order to remain productive and
eventually lead to the development of a national policy
competitive.
framework on lifelong learning.
Through its Professional Guidance Information Ser-
The High School Equivalency Programme (HISEP) rep-
vices Department (PROGIS), the HEART Trust/NTA has led
resents an important lifelong learning intervention being
the process of creating a national life long learning Focus
spearheaded by the Trust in conjunction with the Ministry
Group, which consists of representatives from private and
of Education and Youth. HISEP is an opportunity for people
public sector companies and training and education insti-
to gain skills and knowledge and get a high school-level
tutions working towards the development of a culture of
education at any age. It is a chance for people to improve
lifelong learning in Jamaica.
their own lives, the lives of their families and their country.
The group is represented by the Cabinet Office, Coun-
HISEP is designed to be flexible and modular so that
cil of Community Colleges, Excelsior Community College,
adult learners can progress at their own pace. It is based
Grace Kennedy Company Limited, Institute of Manage-
on independent and guided learning, encouraging adults
ment Sciences, Jamaica Council of Churches, Jamaica
to go to “schools without walls”, and to give them access to
Employers Federation, Jamaica Library Service, Jamaica
new information, a foundation to acquire a skill and wider
Teachers Association, Ministry of Education, Youth & Cul-
employment options.
ture, Ministry of Labour & Social Security, National Council
Facilitators and mentors for HISEP have been trained to
on Education, Northern Caribbean University, Office of the
understand the needs of adult learners to give them a ful-
Prime Minister, Planning Institute of Jamaica, University of
filling learning experience.
Technology, University of the West Indies, and the Vauxhall
High School.
These emerging initiatives are of paramount importance
to the National Training Agency in keeping with its mandate
The vision of the group is for a transformed Jamaica
in which each person values and participates in lifelong
to prepare the workforce for the Caribbean Single Market
and Economy (CSME).
learning to generate and sustain personal productivity in
the pursuit of national growth and development
23
WORLD CLASS WORKERS
WITH NCTVET CERTIFICATION IN TRINIDAD & tobago
NVQ-J’s give workers access to
work permits
Six employees of the Cigarette Company of Jamaica,
a member of the Carreras Group, are now in Trinidad
and Tobago in technical positions at the West Indies
Tobacco Company (WITCO). The workers were initially
turned down for work permits to Trinidad, but were
subsequently granted the permits because of their
qualifications and work experience.
The employees – Fitzroy Johnson, Orville Russell,
Winston Castle, Clive Reid, Michael Ewan and Martin
Woodburn, all have one thing in common – they are
all certified by the National Council on Technical Vocational Education and Training (NCTVET), the certification arm of the HEART Trust/National Training
Agency.
They all agree that their certification by the
HEART Trust/NTA was one of the main reasons why
they were granted the work permits and able to
lows the free movement of labour among skilled profes-
work at WITCO.
sionals.
The Carreras Group has fully embraced the workforce
“This is the first set of non-management staff that we
intervention programmes of the HEART Trust/NTA, which
have going to Trinidad to work and we are very proud of
focuses on in-plant assessment, testing and certification
them. Over the years they have given yeoman service to
with the National Vocational Qualification of Jamaica (NVQ-
Carreras and now that they are spreading their wings to the
J), which is accepted regionally and in commonwealth
Caribbean, we must take off our hats to them,” said Myrtle
countries.
Weir, former Human Resources Manager at Carreras.
All the six employees possess their NVQ-J’s at level three
“These six men in Trinidad show what can be achieved.
and bring to the table world-class technical skills and com-
It must be noted that the positions that they filled were also
petence.
advertised in Trinidad by WITCO, but there were no takers.
They were able to go to Trinidad and work under the
provisions of the Caribbean Single Market, CSM, which al-
24
Our guys were qualified and ready to fill the posts”, noted
Mrs. Weir.
heart/nta’s first values icon
gregory wint, project manager, world skills jamaica
customer satisfac tion
quality
learning, creativit y
& innovation
relevance
partnership
t e a mwo r k
Gregory Wint is the inaugural Values Icon of the year for the
HEART Trust/NTA.
Mr. Wint won the award from a field of 21 nominees
and received several prizes including a laptop computer,
a $300,000 training scholarship, and a trip to attend an international human resources management conference in
Washington D.C. in June 2006.
The Values Icon Award was introduced by the Agency,
to encourage employees to live the core values of the organisation.
Mr. Wint joined HEART in 1999 as a related subjects instructor at JAGAS and featred highly in HEART’s Annual Instructor Quality Service Programme.
The infusion of the organisation’s six core values into
the daily activities of all members of ‘Team HEART’ is essential to the organisation delivering on its commitments to all
its stakeholders.
HEART has also developed a Core Values Handbook as
a reference guide for all employees in the on-going activities to build awareness and align personal and professional
value systems within the organisation.
HEART/NTA is the Jamaica Employers’ Federation’s 2005
Employer of Choice.
25
workforce intervention in bauxite/alumina sector
producing world-class workers for jamalco expansion
The HEART Trust/NTA and JAMALCO has officially signed
potential workers islandwide. Presently, over 1, 700 persons
a Memorandum of Understanding (MOU) to facilitate the
are in training at 13 participating institutions in the National
training of 3,000 highly skilled technical personnel for the
Training System, which comprise nine HEART institutions
upcoming multi-billion dollar expansion programme at
and four private providers.
JAMALCO.
This working partnership with JAMALCO is a central part
Under the partnership agreement, the Trust is responsible for assessing, training and certifying workers currently
of the Trust’s commitment to meet its goal of training and
certifying half of the Jamaican workforce by 2008.
employed to sub-contractors of JAMALCO as well as other
left to right Donald Foster, Chief Technical Director, HEART Trust/NTA, Robert Gregory, Executive Director, HEART Trust/NTA, Alberto Fabrini, Managing Director,
JAMALCO, and Sharon Brown, CFO of JAMALCO sign the MOU.
standing left to right
26
Michelle Walford, Communications Officer and Mark Thomas, Director of Communications
TEAM-JAMAICA CD-ROM
World Skills in jamaica
TO SPEED UP MANDATORY TOURISM
jamaica creating history
TRAINING & CERTIFICATION
The Tourism Product Development
Company
(TPDCo) and the HEART
Jamaica created history by becoming the first Englishspeaking Caribbean country to participate in the World
Skills competition.
Trust/NTA have intro-
The Jamaican team of Aneisha Simpson, Nickardo Whi-
duced a Team Jamaica
telocke, Omar Johnson and Danielle Clarke made history
Self Teaching CD-ROM
when they became the first team from an English-speaking
to increase the rate of
Caribbean country to enter the World Skills competition.
tourism training and cer-
They competed in information technology, cooking and
tification among workers in
beauty services. All members of the team are graduates of
the tourism sector.
the HEART Trust/NTA.
With over 70,000 workers in the sector to receive the
Another Jamaican team is being prepared for
mandatory training and certification, the CD-ROM will en-
next World Skills competition in Japan in 2007.
able them to train those who cannot physically participate
World Skills Competitions are held every two
in the two- week training programme due to time con-
years and attract participation
straints or other limitations.
from almost 50 countries.
Tourism workers at the entry level who want to utilize
the new delivery option will be required to register at a
designated Team Jamaica Assessment Centre, complete
the modules on the CD-ROM at their convenience and
visit an Assessment Centre for testing and certification. The
units on the CD-ROM cover Tourism Awareness, Customer
Service, Self-Development, Jamaican History, Geography,
Attractions, Culture, Environmental Awareness and Teamwork.
The Team Jamaica CD-ROM will not only be used for
tourism workers. It is also one of the instructional tools to
be used when TPDCo and HEART Trust/NTA begin the training exercise for official Cricket World Cup, 2007 volunteers.
Nicardo Whitelocke representing Jamaica at the World Skills Competition in Helsinki, Finland
27
RUNAWAY BAY HEART HOTEL and training institute
celebrates 20 years of Excellence
The Runaway Bay HEART Hotel & Training Institute has the
tel also offers a large conference room of 2400 square feet
unique distinction of being the single-largest trainer of pro-
and caters to both local and international guests, focusing
fessional workers for the local hospitality sector.
primarily on the niche areas of groups and conventions,
The Hotel is nestled amidst the lush tropical hills of Car-
weddings and honeymoon packages.
diff Hall, Runaway Bay, on a 4.3 hectare/10 acre property,
Now in its 20th year, the Hotel and Training Institute is
stately resting on its own plateau overlooking the Runaway
committed to strengthening linkages with the hospitality/
Bay Golf course and the beautiful Caribbean Sea.
tourism industry, offering world-class service in an environ-
Emerging from the old Runaway Bay Country Club,
the hotel started operations on November 11, 1986 with
twenty (20) rooms, offering full service to both local and
international guests.
mentally friendly atmosphere, whilst ensuring training relevance in the industry.
The Institute has offered training in hospitality since
November 1986 and today level one and two courses are
With the changing expectations of its clientele and
offered in food preparation, food and beverage services,
the industry at large, the hotel changed its name in 1997
front office operations, housekeeping, hospitality account-
to the Runaway Bay Heart Hotel and by extension the
ing, tourism, language and communication, and computer
Runaway Bay Heart Hotel and Training Institute.
studies. The Institute has strong partnerships with select
A comprehensive expansion programme was then
hotels.
completed with the addition of 36 rooms to bring the to-
The facility also landed a significant historic achieve-
tal to 56. These well appointed bedrooms are temperature
ment in 2002 by becoming the first educational institution
controlled, featuring satellite televisions, telephone, private
in the world to receive the environmental certification from
baths, with one king-size bed or two double beds. The
the prestigious United Kingdom Green Globe 21 Interna-
rooms offer their own exquisite balcony, uniquely designed
tional.
to provide a breathtaking panoramic view.
Green Globe 21 is an internationally-recognised
The Cardiff Hall restaurant features a delectable fusion
environmental certification. It has positioned Runaway
of local and international cuisine with classic table settings
Bay HEART as the leading vocational institution within the
featuring a comfortable “’Old World Charm”.
Caribbean region on sustainable tourism development and
The bar is a kaleidoscope of colours featured in the au-
environmental best practices in hospitality education.
thentic designs on the shades overhanging the counter.
In 2005, Runaway Bay HEART Hotel and Training Insti-
The delightful casual setting of the piano bar and terrace
tute copped the prestigious Carl Fabergé Award in the field
tree house pool bar beckons our guests to relax and enjoy
of Housekeeping, as well as the Caribbean Tourism Organi-
the best of the hotel’s thirst quenching beverages. The ho-
sation Sustainable Tourism Award.
28
29
heart/nta success stories
education makes you trainable. training makes you employable.
THE MOSS twins
TWO GENERATIONS OF EXCELLENCE IN THE HOSPITALITY INDUSTRY
The Moss Family from the garden parish of St. Ann has two
the HEART Runaway Bay HEART Hotel and Training Institute.
generations making waves in the hospitality industry for
At the time, the twins were still babies.
eighteen years.
Now the twins have grown up and they have also suc-
Parents, Donovan and Charmaine Moss, have worked in
cessfully pursued courses at Runaway Bay and are now off
the industry as pastry makers, since 1989 and almost two
on hospitality scholarships to Hocking College in the United
decades later, their twin daughters, Shanika and Sherika are
States.
following their footsteps. All four, credit their success in the
They are also in training for Jamaica’s team for the next
hospitality industry to two things: their passion for baking
World Skills competition to be held in Japan in 2007. The
and the help of the HEART Trust/NTA.
Moss family – Charmaine, Donovan, Sherika and Shanika
The love affair with the industry began when both Charmaine and Donovan were accepted to pursue training at
30
– HEART graduates and valuable assets for Jamaica’s vibrant
hospitality sector.
success stories
Derrick Wilks
Senior Producer – RJR 94 FM
Derrick Wilks is a senior producer at one of Jamaica’s flagship
radio stations – RJR 94 FM. In his words “radio found me”.
But, Derrick was brought to radio through the School
Leavers Programme of the HEART Trust/NTA. After leaving
Jamaica College in 1982, Derrick was off to France on a twoyear AFS scholarship and when he returned to Jamaica,
with no jobs available, he was introduced by a friend to the
HEART Trust/NTA.
He was quickly assigned to Radio Jamaica as a bright,
young trainee announcer, but he quickly established himself as an emerging talent with a promising future in broadcasting.
Soon, young Wilks was developing a strong reputation
among his peers and supervisors and he was given to opportunity to produce and host a programme called “Teenage Exchange” during Marie Garth’s popular afternoon show
on Thursdays. He then went on to host a night programme
for 18 months.
And, so it came as no surprise that when RJR launched
FAME-FM in 1984, Don Topping asked Derrick to host the
Sunday night show and to work with disc jock Patrick
Lafayette on weekday afternoons. He also hosted several
other programmes including jazz and classical music.
In 1990, for the first time, Derrick was exposed to the
fast-paced world of news as he had to prepare and present
the news and sports package.
Derrick says his role at RJR was expanded in 1991 when
Hol Plummer invited him to assume the role of a producer
– another new challenge as he had no experience in this
area. However, he enrolled in a course at the Creative Production Theatre Company, CPTC, to hone his production
“HEART gave me this start in broadcasting and I cannot
skills and came out in the top 5% of his class. Since then,
thank them enough. Now I recommend many other people
he has excelled and was subsequently promoted to Senior
to the Trust because I want them to get the same opportu-
Producer.
nity that I did.”
31
success stories
Kathleen Smith-Evans
Bringing the Power of “Woman” to the Construction Sector
From she was a girl, Kathleen Smith-Evans has never been
intimidated by anything, least of all doing what the boys
did. Now, she has taken that same approach as she etches
a role for herself in the male-dominated construction industry.
“I am the type of person who just wants to see progress
and I had a liking and a flair for construction and I knew that
HEART was the best place to go to get the professional help
I needed to make it in the business,” says Kathleen.
In 2002, she applied and was accepted at the Portmore
HEART Academy to do the level one course in multi-skilled
masonry, which included tiling, block laying, steel fixing,
electrical installation and plumbing, among other things.
Although several eyebrows were raised by her male colleagues in the course, Kathleen was undaunted and quickly
established herself as a leader.
After successfully completing level one, she enrolled in
level two of the same course and now boasts that she can
build her own home as well as offer her services to clients.
Now, as she prepared to enroll in level three, she has returned to the Portmore Academy as a demonstrator and
assistant instructor in general construction. In the future,
she plans to pursue a degree in instructional technology in
construction in order to become a qualified instructor.
“HEART has given me the opportunity of a lifetime. To
be a skilled person with a marketable world-class certification is no joke. It pays to be multiskilled and multi-talented, especially in light of the Caribbean Single Market and
Economy (CSME). Now I am in a position to benefit,” says
Kathleen.
32
success stories
Kevin Foster
Furniture Maker
Kevin Foster is a self made man. Always exploring the possibilities. Making the best of his opportunities.
His love for the furniture industry developed while he
was at the Spalding Secondary School in Clarendon and
since then, he has become an expert in carving unique
wood products.
His business “Foster’s Unique Wood Products”, is based
in Nine Miles, Spaldings, Clarendon and it caters mainly to
homeowners, who want high quality furniture and specialized wood products.
Kevin is also a level one graduate of the Portmore
HEART Academy and says his ultimate goal is to become an
instructor in carpentry, to share his vast wealth of talent and
expertise with young Jamaicans.
“The furniture industry is constantly under pressure
from imports and so local manufacturers have to put a
premium on quality and excellent customer service. We
have to make Jamaicans think twice before they go the
foreign route. Although I was working in the industry for
many years, the training at HEART gave me the certification
I needed to boost my confidence and operate at a higher
level,” says Kevin.
The furniture maker hopes to further expand his business while pursuing the level two and three courses at the
Portmore HEART Academy. “ I want to be among the best
in the business and to help others. I want to be a master
teacher in the field of carpentry.”
33
senior executive emoluments
Positions
Salaries
Executive Director
5,794,445
Senior Director - HEART Trust Fund
Vacation
Incentive
Uniform
MOU
Allowance
Gratuity
Total
635,196
812,381
39,140
1,290,278
19,740
8,671,180
3,644,445
635,196
483,436
39,140
908,333
19,740
5,730,290
Senior Director - HRPD
3,238,956
635,196
458,345
39,140
0
19,740
4,391,376
Chief Technical Director
3,644,445
635,196
528,918
39,140
908,333
19,740
5,775,772
Chief Information Officer
3,238,956
635,196
424,854
39,140
800,792
19,740
5,158,677
National Programmes Director
3,400,000
635,196
485,418
39,140
0
19,740
4,579,494
Senior Director - NCTVET
3,511,111
635,196
508,795
39,140
0
19,740
4,713,982
Senior Director - Planning and Projects
3,238,956
635,196
435,672
39,140
597,239
19,740
4,965,942
34
80,000
Reimbursed
Travel
Expenses
income and expenditure account
year ended 31 march 2006
Page 1
Human Employment and Resource Training Trust
Income and Expenditure Account
Year ended 31 March 2006
(expressed in Jamaican dollars unless otherwise indicated)
2006
2005
$’000
$’000
3,486,532
3,083,115
107,841
193,773
6,996
-
339,227
301,348
125
6,315
35,773
6,133
3,976,494
3,590,684
742,958
655,832
8
516,621
486,639
10
31,578
59,298
250,385
183,990
2,305,788
2,094,354
27,413
20,376
3,874,743
3,500,489
101,751
90,195
(43,658)
(48,218)
58,093
41,977
Note
Income
Employers’ 3% contribution
Finance income
5
Grants
Institutional earnings
Profit on sale of property, plant & equipment
Other income
7
Expenses
Facilities costs
Personnel/administration costs
Impairment charge
Other operating costs
Training costs
Refurbishing of technical high schools
Surplus before Taxation
Taxation
9
NET SURPLUS
36
balance sheet
Page 2
Balance Sheet
31 March 2006
2006
2005
Note
$’000
$’000
Property, plant and equipment
10
1,666,101
1,562,877
Construction in progress
11
49,947
29,973
Pension plan asset
12
509,086
371,856
Loans receivable
13
15,151
23,665
Investments
14
309,603
463,565
Intangible asset
15
20,007
21,331
2,569,896
2,473,267
ASSETS
Non-Current Assets
Current Assets
Biological assets
16
10,368
10,342
Inventories
17
54,533
36,104
Receivables
18
136,171
135,004
124,834
83,705
Taxation recoverable
Cash and short term investments
19
686,970
727,561
1,012,876
992,716
3,582,771
3,465,983
2,436,614
2,378,521
RESERVES
Accumulated HEART Fund
LIABILITIES
Non-Current Liabilities
Employee benefit obligation
12
110,869
92,312
Deferred income taxes
20
170,240
136,320
281,109
228,632
Current Liabilities
Bank overdraft
19
58,246
73,161
Payables
21
775,772
768,135
9,738
-
22
21,292
17,534
Taxation payable
Due to other agencies
865,048
858,830
3,582,771
3,465,983
Approved for issue by the Board of Directors on 11 November 2006 and signed on its behalf by:
Sandra Glasgow
Director
Robert Gregory
sandra glasgow
Robert Gregory
ChairmanExecutive Director
Director
37
statement of changes in equity
Page 3
Statement of Changes in Financing
Fair Value Accumulated
Reserve HEART Fund
Balance at 1 April 2004
Gains realised on available for sale investments
38
Total
$’000
$’000
$’000
8
2,336,544
2,336,552
(8)
-
(8)
Surplus for year
-
41,977
41,977
Balance at 31 March 2005
-
2,378,521
2,378,521
Surplus for year
-
58,093
58,093
Balance at 31 March 2006
-
2,436,614
2,436,614
statement of cash Flows
Page 4
Statement of Cash Flows
Note
2006
2005
$’000
$’000
58,093
41,977
Cash Flow from Operating Activities
Surplus for year
Adjustments for:
Amortisation
15
9,517
1,081
Depreciation
10
123,355
132,114
Income tax charge
9
43,658
48,218
Interest income
6
(99,391)
(192,501)
(118,673)
(45,117)
34,156
59,298
Changes in retirement benefit assets
Write-off/impairment of property, plant and equipment
Profit on sale of property, plant and equipment
(125)
(6,315)
50,590
38,755
(26)
-
Changes in operating assets and liabilities:
Biological assets
Inventories
Receivables
Due from other agencies
(18,429)
(9,369)
(1,365)
(32,285)
-
Taxation recoverable
10,405
(41,129)
(27,937)
Payables
7,638
63,955
Due to other agencies
3,758
3,115
Interest received
Taxation paid
Cash provided by operating activities
1,037
46,639
122,711
243,934
-
(51,999)
123,748
238,574
741
7,965
Cash Flows from Investment Activities
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
10
(206,219)
(158,675)
Purchase of intangible asset
15
(8,193)
(18,685)
Proceeds from investments
Purchase of investments
Expenditure on construction in progress
Loans receivable
Cash used in investing activities
(Decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
CASH AND CASH EQUIVALENTS AT END OF YEAR
19
415,684
270,478
(285,045)
(88,316)
(75,106)
(86,959)
8,714
(3,240)
(149,424)
(77,432)
(25,676)
161,142
654,400
493,258
628,724
654,400
39
notes to the financial statements
31 march 2006
expressed in jamaican dollars unless otherwise indicated
Page 5
Notes to the Financial Statements
31 March 2006
1.
Identification and Activities
The Human Employment and Resource Training Trust (referred to as “the Trust”) is a statutory body, incorporated
in Jamaica under the Human Employment and Resource Training Act 1982 (HEART Act), with registered office at
6B Oxford Road, Kingston 5.
The main activities of the Trust comprise the development of and provision of finance for training schemes,
employment opportunities for learners (trainees) and the co-ordination of technical training at the national level in
Jamaica.
The HEART Act provides for the establishment of a special fund referred to as the HEART Fund, which requires
employers to contribute 3% of their gross payroll to the Trust, less permitted payments to the Trust’s registered
learners. The Commissioner of Inland Revenue collects the contributions payable to the Trust, as defined by the
Act, and deposits these amounts into the HEART Fund.
On 23 December 2003, Section 8 of the Human Employment and Resource Training Act 1982 (“the HEART Act”),
which granted the Trust tax exempt status was removed. As a result of this amendment, the Trust is now liable to
pay income tax on its surplus (Note 8).
2.
Significant Accounting Policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Basis of preparation
These financial statements have been prepared in accordance and comply with International Financial
Reporting Standards (IFRS), and have been prepared under the historical cost convention as modified by
the revaluation of certain financial assets.
The preparation of financial statements in conformity with IFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of applying the
Trust’s accounting policies. Although these estimates are based on managements’ best knowledge of
current events and action, actual results could differ from those estimates. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements are disclosed in Note 4.
40
31 march 2006
Page 6
31 March 2006
2. Significant Accounting Policies (Continued)
(a)
Basis of preparation (continued)
Standards, interpretations and amendments to published standards effective in the current financial
year.
Certain new accounting standards, amendments and interpretations to existing standards have been
published that became effective during the current financial year. The Trust has assessed the relevance of all
such new standards, interpretations and amendments and has adopted the following IFRS, which are relevant
to its operations. The 2005 comparative figures have been amended as required, in accordance with the
relevant IFRS requirements.
IAS 1 (revised 2003)
Presentation of Financial Statements
Inventories
Accounting Policies, Changes in Accounting Estimates and Errors
Events after the Balance Sheet Date
Property, Plant and Equipment
The Effects of Changes in the Foreign Exchange rates
Related Party Disclosures
Financial Instruments: Disclosure and Presentation
Impairment of Assets
IAS 39 (revised 2003/2004)
Financial Instruments: Recognition and Measurement
The adoption of these standards did not result in substantial changes to the Trust’s accounting policies. In
summary:
x IAS 2, 8, 10, 16, 21, 32, (all revised 2003), IAS 36 (revised 2004) and IAS 39 (revised 2003/2004) had no
material effect on the Trust’s policies.
x IAS 24 (revised 2003) has affected the identification of related parties and some other related-party
disclosures.
All changes in the accounting policies have been made in accordance with the transitional provisions in the
respective standards. Except for IAS 39 where the de-recognition of financial assets is applied
prospectively, all new standards, amendments and interpretations adopted by the Trust require
retrospective application.
There was no impact on the accumulated surplus at 1 April 2005 from the adoption of any of the
above-mentioned standards.
41
31 march 2006
Page 7
31 March 2006
2.
Significant Accounting Policies (Continued)
(a) Basis of preparation (continued)
Standards, interpretations and amendments to published standards that is not yet effective
At the date of authorisation of these financial statements certain new standards, amendments and
interpretations to existing standards have been published that are mandatory for the Trust’s accounting
periods beginning on or after 1 April 2006 or later periods but which the Trust has not early adopted.
International Accounting Standard
x
IAS 19 (Amendment), Employee Benefits (effective for financial periods commencing on or after 1
January 2006). This amendment introduces the option of an alternative recognition approach for
actuarial gains and losses. It may impose additional recognition requirements for multi-employer plans
where insufficient information is available to apply defined benefit accounting. It also adds new
disclosure requirements. As the Trust does not intend to change the accounting policy adopted for
recognition of actuarial gains and losses and does not participate in any multi-employer plans, adoption
of this amendment will only impact the format and extent of disclosures presented in the accounts. The
Trust will apply this amendment from annual periods beginning 1 April 2006.
International Financial Reporting Interpretations Committee
x
IFRIC 4, Determining whether an Arrangement contains a Lease (effective for financial periods
commencing on or after 1 January 2006). IFRIC 4 requires the determination of whether an
arrangement is or contains a lease to be based on the substance of the arrangement. It requires an
assessment of whether: (a) fulfilment of the arrangement is dependent on the use of a specific asset or
assets (the asset); and (b) the arrangement conveys a right to use the asset. The Trust assessed the
impact of IFRIC 4 and concluded that there are no transactions to which this applies. The Group will
apply IFRIC 4 from annual periods beginning 1 April 2006.
(b) Revenue recognition
Interest income and institutional earnings are recorded on the accrual basis. Where collection of interest
income is considered doubtful, interest income is thereafter recognised based on the rate of interest that is
used to discount the future cash flows for the purpose of measuring the recoverable amount.
Any sale of goods or provision of service by the Trust is recognised on an accrual basis, on completion of
the underlying service or transaction.
Gains and losses arising from trading in foreign currencies are recognised when realised and are shown
net in the income and expenditure account.
Employers’ contributions are recognised as income when received by the Trust from the Commissioner of
Inland Revenue, as mandated by the HEART Act.
(c) Grant funds
Certain grant funds are administered by the Trust on behalf of other agencies. These amounts are treated as
liabilities of the Trust until expended and are not included as income.
Grant funds received exclusively for the Trust are treated as income in the year they are received.
42
31 march 2006
Page 8
31 March 2006
2.
(d) Income taxes
Taxation expense in the income and expenditure account comprises current and deferred tax charges.
Current tax charges are based on taxable surplus for the year, which differ from the surplus before tax
reported because it excludes items that are taxable or deductible in other years, and items that are never
taxable or deductible. The Trust’s liability for current tax is calculated at tax rates that have been enacted at
balance sheet date.
Deferred tax is the tax expected to be paid or recovered on differences between the carrying amounts of
assets and liabilities and the corresponding tax bases. Deferred income tax is provided in full, using the
liability method, on temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. Currently enacted tax rates are used in the determination of
deferred income tax.
Deferred tax assets are recognised to the extent that it is probable that future taxable surplus will be
available against which the temporary differences can be utilised.
Deferred tax is charged or credited in the income and expenditure, except where it relates to items
charged or credited to equity, in which case, deferred tax is also dealt with in the accumulated fund.
(e)
Furniture, fixtures, equipment and computers are shown at cost, less subsequent depreciation for these
assets. All other property, plant and equipment are stated at historical cost less accumulated depreciation
and impairment losses.
Depreciation is calculated on the straight-line basis at annual rates that will write off the carrying value of each
asset over the period of its expected useful life. Annual depreciation rates are as follows:
Buildings
Motor vehicles
Computers
Furniture, fixtures and equipment
Utensils
Leasehold improvements
2½%
25%
33 ѿ%
10%
20%
over period of lease
Land is not depreciated.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down
immediately to its recoverable amount.
Gains and losses on disposal of property, plant and equipment are determined by reference to their
carrying amount and are taken into account in determining surplus.
Repairs and maintenance expenses are charged to the income and expenditure account during the
financial period in which they are incurred. The cost of major renovations is included in the carrying
amount of the asset when it is probable that the future economic benefits in excess of the originally
assessed standard of performance of the existing asset will flow to the Trust. Major renovations are
depreciated over the remaining useful life of the related asset.
43
31 march 2006
Page 9
31 March 2006
2.
(f) Intangible assets
Generally, costs associated with developing or maintaining computer software are recognised as an expense
as incurred. However, costs that are directly associated with identifiable and unique software products
controlled by the Trust, and which have probable economic benefits exceeding the cost beyond one year, are
recognised as intangible assets.
Expenditure which enhances or extends the performance of computer software beyond their original
specifications is recognised as capital improvement and added to the original cost of the software. Computer
software costs are amortised using the straight-line method over their useful lives.
Intangible assets are reviewed periodically for impairment. Where the carrying amount of an intangible asset is
greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.
(g) Biological assets
Biological assets which include livestock are stated at their fair value. The fair value of livestock is
determined based on market price of livestock at similar age breed and genetic merit.
(h) Employee benefits
(i) Pension scheme
The Trust operates a defined benefit plan. The scheme is generally funded through payments to a
trustee-administered fund as determined by periodic actuarial calculations. A defined benefit plan is a
pension plan that defines an amount of pension benefit to be provided, usually as a function of one or
more factors such as age, years of service or compensation.
The asset or liability in respect of defined plans is the difference between the present value of the defined
benefit obligation at the balance sheet date and the fair value of plan assets, adjusted for unrecognised
actuarial gains/losses and past service cost. Where a pension asset arises, the amount recognised is
limited to the net total of any cumulative unrecognised net actuarial losses and past service cost and the
present value of any economic benefits available in the form of refund from the plan or reduction in future
contributions to the plan. The pension costs are assessed using the Projected Unit Credit Method. Under
this method, the cost of providing pensions is charged to the income and expenditure account so as to
spread the regular cost over the service lives of the employees in accordance with the advice of the
actuaries, who carry out a full valuation of the plan every year in accordance with IAS 19. The pension
obligation is measured at the present value of the estimated future cash outflows using estimated discount
rates based on market yields on government securities which have terms to maturity approximating the
terms of the related liability.
A portion of actuarial gains and losses is recognised in the income and expenditure account if the net
cumulative unrecognised actuarial gains or losses at the end of the previous reporting period exceeded 10
percent of the greater of the present value of the gross defined benefit obligation and the fair value of plan
assets at that date. Any excess actuarial gains or losses are recognised in the income and expenditure
account over the average remaining service lives of the participating employees.
(ii) Other post-employment obligations
The Trust also provides post-employment healthcare benefits to its retirees. The entitlement to these
benefits is usually based on the employee remaining in service up to retirement age and the completion
of a minimum service period. The expected costs of these benefits are accrued over the period of
employment, using accounting methodology similar to that for defined benefit pension plans. These
obligations are valued annually by independent qualified actuaries.
44
31 march 2006
Page 10
31 March 2006
2.
(h) Employee benefits (continued)
(iii)
Annual leave
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is
made for the estimated liability for annual leave as a result of services rendered by employees up to the
balance sheet date.
(i)
Impairment of long lived assets
Property, plant and equipment and other non-current assets are reviewed for impairment losses whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable such
circumstances include the results of physical counts and other examinations of these assets. An
impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its
recoverable amount which is the higher of an asset’s net selling price and value in use. For the purposes
of assessing impairment, assets are grouped at the lowest levels for which they are separately identifiable
cash flows.
(j)
Financial instruments
A financial instrument is any contract that gives rise to both a financial asset in one entity and a financial
liability or equity of another entity.
Financial assets
The Trust classifies its financial assets in the following categories: loans and receivables and available for
sale. The classification depends on the purpose for which the financial assets were acquired. Management
determines the classification of its financial assets at initial recognition and re-evaluates this designation at
every reporting date.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They are included in current assets, except for maturities greater than 12
months after the balance sheet date. These are classified as non-current assets and are included in long
term receivables on the balance sheet.
Available-for-sale financial assets
Available for sale financial assets are non-derivatives that are either designated in this category or not
classified in any of the other categories. They are included in non-current assets unless management intends
to dispose of the investment within 12 months of the balance sheet date. At the balance sheet date, the
following financial assets were classified as available for sale: investments, receivables and cash and short
term investments.
Financial liabilities
The Trust’s financial liabilities are initially measured at cost, and are subsequently measured at amortised
cost using the effective interest method. At the balance sheet date, the following items were classified as
financial liabilities: bank overdraft and payables.
(k) Inventories
Inventories are valued at the lower of cost and net realisable value, cost being determined on a first-in, firstout basis.
(l) Technical assistance
The provision of technical assistance at no cost to the Trust is neither quantified nor included in these
financial statements.
45
31 march 2006
Page 11
31 March 2006
2.
(m) Trade receivables
Trade receivables are carried at original invoice amount less provision made for impairment of these
receivables. A provision for impairment of these receivables is established when there is objective
evidence that the Trust will not be able to collect all amounts due according to the original terms of
receivables. The amount of the provision is the difference between the carrying amount and the
recoverable amount, being the present value of expected cash flows, discounted at the market rate of
interest for similar borrowers.
(n) Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purposes of the cash flow
statement, cash and cash equivalents comprise cash and bank balances, deposits held at call with banks,
and other short-term highly liquid investments with original maturities of three months or less, net of bank
overdrafts.
(o) Payables
Payables are recorded at cost.
(p) Foreign currency translation
Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the
transactions. Assets and liabilities denominated in foreign currencies are translated into Jamaican dollars
at the exchange rates prevailing at the balance sheet date, that is, in the case of each currency, the Bank
of Jamaica weighted average buying and selling rates at that date. Gains or losses arising from fluctuations
in exchange rates are reflected in the income and expenditure account.
(q) Comparative information
Where necessary, comparative figures have been reclassified to conform with changes in the presentation
in the current year. In particular, comparatives have been adjusted to take into account the adoption of the
new and revised accounting standards (Note 2 (a)).
46
31 march 2006
Page 12
31 March 2006
3. Financial Risk Management
(a) Financial risk factors
The Trust’s activities expose it to a variety of financial risks including the effects of changes in debt and
equity market prices, foreign currency exchange rates, interest rates and liquidity risks. The Trust’s overall
risk management programme focuses on the unpredictability of financial markets and seeks to minimize
potential adverse effects on the financial performance and audit of the Trust.
Risk management is carried out by a finance committee which identifies, evaluates and manages financial
risks in close co-operation with the Trust’s operating business units. The Board of Directors sets guidelines
for overall risk management including specific areas, such as foreign exchange risk, interest rate risk, credit
risk, and investing excess liquidity.
(i)
Market risk
Currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign
exchange rates. The Trust is exposed to this risk arising from various currency exposures primarily with
respect to the United States dollar.
The balance sheet at 31 March 2006 includes aggregate net foreign assets of approximately
US$2,332,000 (2005 – US$1,816,000) in respect of transactions arising in the ordinary course of
business.
Price risk
Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market
prices, whether those changes are caused by factors specific to the individual instrument or its issuer or
factors affecting all instruments traded in the market. The Trust is exposed to debt securities price risk
because of investments held by the Trust and classified on the balance sheet as available-for-sale.
(ii) Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause
the other party to incur a financial loss. The Trust has no significant concentration of credit risk attaching
to trade receivables as the Trust has a large and diverse customer base, with no significant balances
arising from any single economic or business sector, or any single entity or Group of entities. The Trust
has policies in place to ensure that sales of products and services are made to customers with an
appropriate credit history. Trade receivable balances are shown net of provision for doubtful debts.
Cash and short term investments are held with approved financial institutions. A significant level of
investments is held in various forms of government instruments.
47
31 march 2006
Page 13
31 March 2006
3.
Financial Risk Management (Continued)
(a) Financial risk factors (continued)
(iii) Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in raising funds to meet commitments
associated with financial instruments. Prudent liquidity risk management implies maintaining sufficient
cash and marketable securities, the availability of funding through an adequate amount of committed
credit facilities. Due to the dynamic nature of the underlying business, the management of the Trust
aims to maintain flexibility in funding by keeping sufficient cash and marketable securities.
(iv) Cash flow and fair value interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in
market interest rates.
The Trust takes on exposure to the effects of fluctuations in the prevailing levels of market interest
rates on financial position and cash flows. Interest margins may increase as a result of such changes
but may reduce or create losses in the event that unexpected movements arise.
The Trust’s interest bearing financial instruments include investments and loans receivable. The
effective interest rates of interest impacting these instruments are disclosed in the individual notes to the
financial statements associated with each item.
(b) Fair value estimation
The amounts included in the financial statements for cash and short term investments, bank overdraft,
receivables, payables and due to other agencies reflect their fair values due to the short term maturity of
these instruments. The fair value of financial liabilities is estimated by discounting the future contractual
cash flows at the current market interest rate that is available to the Trust for similar financial instruments.
The estimated fair values have been determined using available market information and appropriate
valuation methodologies. However, considerable judgement is necessarily required in interpreting market
data to develop estimates of fair value.
The estimated fair values of other financial instruments are as follows:
2006
Loans receivable (including current portion)
Investments (Note 14)
2005
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
$’000
$’000
$’000
$’000
22,772
19,048
31,486
24,993
309,603
309,603
463,565
463,565
The fair value of loans receivable and investments are estimated using discounted cash flow analyses based
on interest rates for similar types of arrangements in the market and the effective rate of return prevailing on
similar investments in the market.
48
31 march 2006
Page 14
31 March 2006
4. Critical Accounting Estimates and Judgements in Applying Accounting Policies
The Trust makes estimates and assumptions that affect the reported amounts of assets and liabilities within the
next financial year. Estimates and judgements are continually evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Key sources of estimation uncertainty
The Trust makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below.
(i) Depreciable assets
Estimates of the useful life and the residual value of property, plant and equipment are required in order to
apply an adequate rate of transferring the economic benefits embodied in these assets in the relevant
periods. The Trust applies a variety of methods in an effort to arrive at these estimates from which actual
results may vary. Actual variations in estimated useful lives and residual values are reflected in the income
and expenditure account through impairment on adjusted depreciation provisions.
(ii) Pension and other post-employment benefits
The cost of these benefits and the present value of the pension and the other post-employment liabilities
depend on a number of factors that are determined on an actuarial basis using a number of assumptions.
The assumption used in determining the net periodic cost (income) for pension and post-employment
benefits include the expected long-term rate of return on the relevant plan assets, the discount rate and, in
the case of the post-employment medical benefits, the expected rate of increase in medical costs. Any
changes in these assumptions will impact the net periodic cost (income) recorded for pension and postretirement benefits and may affect planned funding of the pension plans. The expected return on plan
assets assumption is determined on a uniform basis, considering long-term historical returns, asset
allocation and future estimates of long-term investments returns. The discount rate represents the interest
rate that should be used to determine the present value of estimated future cash outflows required to settle
the pension and other post-employment benefits obligations. In determining the most appropriate rate, the
interest rate of high quality corporate bonds that are denominated in the currency in which the benefits will
be paid, and that have terms to maturity approximating to the terms of the related liability are used. The
expected rate of increase of medical cost has been determined by comparing the historical relationship of
the actual medical cost increases with the rate of inflation in the respective economy. Past experience has
shown that actual medical costs have increased on average by one time the rate of inflation. Other key
assumptions for the pension and post retirement benefits cost and credits are based in part on current
market conditions.
Were the actual expected return on plan assets to differ by 1%, the carrying amount of employee benefits
obligation would be $15,000,000 higher or lower.
Were the discount rate to differ by 1%, the carrying amount of employee benefits obligation would be
$21,000,000 higher or $28,000,000 lower.
Were the salary growth rate to differ by 1%, carrying amount of employee benefits obligation would be
$18,000,000 higher or $22,000,000 lower.
49
31 march 2006
Page 15
31 March 2006
5. Finance Income
Interest income
Foreign exchange gain
2006
2005
$’000
$’000
99,391
192,501
8,450
1,272
107,841
193,773
2006
2005
$’000
$’000
1,325,858
1,188,321
65,558
56,522
(57,003)
14,971
20,753
17,706
231,951
216,264
1,587,117
1,493,784
2006
2005
No.
No.
1,168
1,092
6. Personnel/Administration Costs
Wages and salaries
Payroll taxes – employer’s portion
Pension (Note 12)
Other post-employment benefits (Note 12)
Other
The number of persons employed by the Trust at the end of the year was as follows:
Full - time
Part - time
7.
50
647
487
1,815
1,579
2006
2005
Other Income
$’000
$’000
G.C.T recoverable
25,117
-
Rental income
10,656
6,133
35,773
6,133
31 march 2006
Page 16
31 March 2006
8.
Expenses by Nature
2006
2005
$’000
$’000
Accommodation
16,177
10,554
Advertising and promotion
53,631
36,576
2,925
2,500
100
-
Bad debt
19,333
6,388
Computer supplies and services
23,230
24,000
Consultants’ fees
11,885
5,853
132,872
133,195
7,692
9,096
Impairment charge
31,578
59,298
Other facilities costs
610,086
522,637
Auditors’ remuneration Current year
Prior year
Depreciation and amortisation
Directors’ fees
20,939
23,871
1,587,117
1,493,784
Refurbishing of technical high schools
27,413
20,376
Professional fees
79,310
45,553
Seminars and conferences
35,956
19,379
1,191,677
1,074,128
Other operating expenses
Personnel/administration costs
Training cost
Traveling
9.
22,822
13,301
3,874,743
3,500,489
Taxation
Previously, under the Section 8 of the HEART Act, the Trust was exempt from income tax, education tax, property
tax, transfer tax and general consumption tax. On 23 December 2003, Section 8 of the HEART Act was removed
(the Trust is however still exempt from education tax under the Education Act). As a result of this amendment, the
Trust is now liable to pay income tax on its surplus.
(a) Taxation is based on the surplus for the year, adjusted for taxation purposes and comprises income tax at
33ѿ%:
Current income tax
Deferred tax (Note 20)
2006
2005
$’000
$’000
9,738
22,565
33,920
25,653
43,658
48,218
51
31 march 2006
Page 17
31 March 2006
9.
Taxation (Continued)
(b) The tax charge on the Trust’s surplus differs from the theoretical amount that would arise using the
statutory tax rate as follows:
Surplus before tax
Tax calculated at a rate of 33ѿ%
2006
2005
$’000
$’000
101,751
90,195
33,917
30,065
Adjusted for the effect of:
Income not subject to tax
-
Expenses not deductible for tax
Income tax expense
52
(2,005)
9,741
20,158
43,658
48,218
31 march 2006
Page 18
31 March 2006
10. Property, Plant & Equipment
Land
Buildings
including
Academies
Motor
Vehicles
Furniture,
Fixtures &
Computers Equipment
$ ’000
$’000
$’000
$’000
270,983
Leasehold
Improvements
Total
$’000
$’000
$’000
470,758
7,749
1,985,543
-
-
At Cost 1 April 2004
45,800
1,105,498
84,755
Transferred to intangible asset (Note 14)
-
-
-
(9,196)
(9,196)
Additions
-
-
15,850
32,722
110,103
-
158,675
Transfers from construction in progress
-
150,490
-
-
-
-
150,490
Disposals
-
-
(8,512)
Write-off/ adjustment
-
-
2,021
31 March 2005
(395)
-
(8,907)
(41,986)
-
(10,022)
-
(49,987)
45,800
1,255,988
94,114
252,523
570,444
7,749
2,226,618
Additions
-
-
17,076
73,660
115,483
-
206,219
Transfers from construction in progress
-
45,326
-
1,992
7,814
-
55,132
Disposals
-
-
(6,849)
(1,334)
-
(8,270)
Write-off/ adjustment
(87)
-
-
(5,797)
(33,450)
-
(42,413)
45,800
1,301,314
98,544
294,638
689,241
7,749
2,437,286
1 April 2004
-
184,997
68,405
154,009
119,152
7,749
534,312
Transferred to intangible asset (Note 14)
-
-
-
-
-
Charge for the year
-
31,816
10,218
36,542
-
Relieved on disposals
-
-
(7,259)
Write-off /adjustment
-
24
(395)
31 March 2005
-
216,837
70,969
Charge for the year
-
32,492
12,685
Relieved on disposals
-
-
(6,849)
(12)
Write-off/adjustment
-
-
(7,365)
(23,414)
31 March 2006
-
249,329
69,440
31 March 2006
45,800
1,051,985
31 March 2005
45,800
1,039,151
31 March 2006
(3,166)
Depreciation -
(5,469)
53,538
-
-
(7,654)
18,364
-
10,438
194,523
173,663
7,749
663,741
27,844
50,334
-
123,355
(7,555)
(395)
(5,469)
132,114
-
(7,145)
22,013
(284)
-
(8,766)
198,941
245,726
7,749
771,185
29,104
95,697
443,515
-
1,666,101
23,145
58,000
396,781
-
1,562,877
Net Book Value -
Based on physical inspection and counting of items of Property, Plant and Equipment during the year, an amount of
$31,148,000 (2005 - $59,298,000) was written off representing impairment and other losses for this category of assets.
An amount of $55,132,000 was transferred from construction in progress (Note 11).
53
31 march 2006
Page 19
31 March 2006
11. Construction in Progress
This represents costs incurred to year end for construction in progress at the following locations:
Above Rocks Vocational Training Centre
Corporate Office 6B Oxford Road
Beechamville Vocational Training Centre
Black River Vocational Training Centre
Buff Bay Vocational Training Centre
CATI
CIT
Culloden Vocational Training Centre
2006
2005
$’000
$’000
649
220
-
100
460
2,439
8,381
520
-
842
82
-
332
-
630
630
11,769
3,552
Falmouth Vocational Training Centre
4
1,259
Granville Vocational Training Centre
424
424
Junction Vocational Training Centre
1,094
1,894
-
130
Ebony Park HEART Academy
Kenilworth HEART Academy
NCTVET
National T.V.E.T Centre
National Tools and Engineering Institute
Newport Vocational Training Centre
Northern Regional Office
1,718
-
633
518
31
386
768
6,610
102
48
Port Maria Vocational Training Centre
1,122
-
Portmore HEART Academy
1,738
-
225
403
1,112
190
349
-
12,444
7,761
15
-
South-East Regional Office
522
375
Stony Hill HEART Academy
14
-
Rockfort Vocational Training Centre
Runaway Bay Academy
School of Cosmetology
Seaford Town Vocational Training Centre
Enterprise Based Training Department
Vocational Training Development Institute (VTDI)
-
80
5,329
1,592
49,947
29,973
Construction in progress totaling $55,132,000 was completed during the year and transferred to property, plant and
equipment (Note 10).
54
31 march 2006
Page 20
31 March 2006
12. Retirement Benefits
(a) Pension scheme
The Trust has established a retirement benefit plan covering all permanent employees. The assets of funded
plan are held independently of the Trust’s assets in separate trustee administered funds.
The scheme is funded by employee contributions at 5% of salary, with the option to contribute an additional
5%, and employer contributions at 10% of salary as recommended by independent actuaries.
The scheme is administered by the Trustees and the funds are invested and managed by Life of Jamaica
Limited.
The amounts recognised in the balance sheet are determined as follows:
2006
$’000
770,700
2005
$’000
675,865
(1,742,578)
(971,878)
462,792
(509,086)
(1,459,101)
(783,236)
411,380
(371,856)
2006
$’000
17,444
90,144
(150,287)
2005
$’000
37,680
95,331
(117,998)
(14,304)
(57,003)
(42)
14,971
Assets at beginning of year
Total (expense)/income, as above
2006
$’000
(371,856)
(57,003)
2005
$’000
(310,395)
14,971
Contributions paid
Asset at end of year
(80,227)
(509,086)
(76,432)
(371,856)
Present value of funded obligations
Fair value of plan assets
Unrecognised actuarial gains
Asset in the balance sheet
The amounts recognised in the income and expenditure account are as follows:
Current service cost
Interest cost
Expected return on plan assets
Net actuarial gain recognised during the year
Total, included in staff costs (Note 8)
The actual return on plan assets was $195,939,000 (2005 - $344,327,000).
Movements in the amounts recognised in the balance sheet:
55
31 march 2006
Page 21
31 March 2006
12. Retirement Benefits (Continued)
The principal actuarial assumptions used were as follows:
2006
2005
Discount rate
12.5%
12.5%
Expected return on plan assets
10.0%
11.0%
Future salary increases
9.5%
9.5%
Future pension increases
3.5%
3.5%
18.6
21.5
Expected average remaining working lives of employees (years)
(b) Other post-employment obligations
The Trust operates a post-employment benefit scheme principally in Jamaica. The benefits covered under
the scheme include health care. Funds are not built up to cover the obligations under this retirement benefit
scheme. The method of accounting and the frequency of valuations are similar to those used for defined
benefit pension schemes.
In addition to the assumptions used for the pension schemes, the main actuarial assumption is a long term
increase in health costs of 10% per year (2005- 10% per year).
The amounts recognised in the balance sheet were determined as follows:
Present value of unfunded obligations
Unrecognised actuarial (gains)/losses
Liability at end of year
2006
2005
$’000
$’000
116,163
89,182
(5,294)
3,130
110,869
92,312
The amounts recognised in the income and expenditure account are as follows:
2006
2005
$’000
$’000
8,660
8,048
Interest cost
12,093
9,658
Total, included in staff costs (Note 8)
20,753
17,706
Current service cost
56
31 march 2006
Page 22
31 March 2006
13. Loans Receivable
2006
2005
$’000
$’000
Motor vehicle, education and computer loans to employees
22,772
31,486
Less: Current portion (Note 18)
(7,621)
(7,821)
15,151
23,665
(a) Motor car loans bear interest at 12% per annum and are repayable over 4 – 5 years. The loans are secured
by a lien on motor vehicles.
(b) Computer and education loans are unsecured, bear interest at 5% per annum and are repayable over 1 – 2
years.
14. Investments
2006
$’000
2005
$’000
12,181
10,012
285,981
418,789
298,162
428,801
11,441
34,764
309,603
463,565
Held-to-maturity securities – at amortised cost
Joint venture deposit
Government of Jamaica
Interest receivable
The joint venture deposit represents amounts placed on long term deposit under a joint venture with the National
Housing Trust (NHT) and Victoria Mutual Building Society (VMBS) to provide mortgage financing to the Trust’s
employees to purchase NHT housing units on the following terms:
(a)
(b)
(c)
(d)
NHT and the Trust will each finance 45% of the cost of the units (totalling 90% of the cost of the units);
The other 10% plus closing costs will be borne by the employees;
Interest is chargeable at 9% p.a. on the 45% deposit by the Trust and is capitalised;
The 45% deposit plus interest will be repaid to the Trust by VMBS at the end of the mortgage.
57
31 march 2006
Page 23
31 March 2006
15. Intangibles
Cost At 1 April 2005
2006
2005
$'000
$'000
27,881
Transferred from property, plant & equipment (Note 10)
Additions
-
9,196
8,193
18,685
36,074
27,881
Amortisation At 1 April 2005
(6,550)
Transferred from property, plant & equipment (Note 10)
Amortisation for the year
Net Book Value
-
(5,469)
(9,517)
(1,081)
(16,067)
(6,550)
20,007
21,331
2006
2005
16. Biological Assets
$’000
$’000
10,342
10,790
Increases due to purchases
3,554
3,020
Gain arising due to physical change
3,152
2,679
Loss arising due to price changes
(6,680)
(6,147)
End of the year
10,368
10,342
2006
2005
$’000
$’000
3,597
3,530
50,936
32,574
54,533
36,104
Beginning of the year
17. Inventories
Hotel supplies – Runaway Bay HEART Hotel and Training Institute
Maintenance, training and office supplies
58
31 march 2006
Page 24
31 March 2006
18. Receivables
Trade accounts receivable
2006
2005
$’000
$’000
80,882
41,838
(42,708)
(23,430)
38,174
18,408
Prepayments
11,558
41,775
Advance on purchase of property, plant and equipment
25,506
37,569
Current portion of long term receivables (Note 13)
7,621
7,821
Staff loans
3,275
3,530
Security deposits
3,451
3,982
General Consumption Tax recoverable
31,403
8,148
Other
15,183
13,771
136,171
135,004
Less: Provision for impairment
19. Cash and Short Term Investments
Cash in hand and bank
2006
2005
160,123
115,914
6,930
6,497
517,697
564,148
2,220
41,002
686,970
727,561
Cash on deposit
Government of Jamaica – repurchase agreements
Interest receivable
Cash and cash equivalents include the following for the purpose of the cash flow statement –
Cash and short investments
Bank overdraft
2006
2005
686,970
727,561
(58,246)
(73,161)
628,724
654,400
Cash is comprised mainly of amounts held in a current account which attracts interest rates of 2% to 2.6%
(2005 – 2% to 3%) per annum.
The average effective rate on short term deposits was 12.75% (2005 – 13%) per annum and these deposits
have an average maturity of 90 days (2005 – 90 days).
The accounting records of the Trust reflect a bank overdraft which results from cheques issued but not yet
presented to the bank. In an effort to maximise interest income, the Trust transfers cash from short-term deposits to
its current accounts only when required, a practice which results in a book overdraft occasionally. The Trust does
not have an actual overdraft with any of its bankers and no bank overdraft facilities are in place.
59
31 march 2006
Page 25
31 March 2006
20. Deferred Income Taxes
Deferred income taxes are calculated on all temporary differences under the liability method using a tax rate of
33ѿ% for the Trust. Liability recognised on the balance sheet is as follows:
Liability at beginning of year
Charged for the year (Note 9)
Liability at end of year
2006
2005
$’000
$’000
136,320
110,667
33,920
25,653
170,240
136,320
2006
2005
$’000
$’000
36,956
30,771
5,698
-
42,654
30,771
38,645
17,884
Deferred income tax assets and liabilities are due to the following items:
Deferred income tax assets Employee benefit obligation benefits
Provisions
Deferred income tax liabilities Property, plant and equipment
Interest receivable
4,554
25,255
Pension plan asset
169,695
123,952
212,894
167,091
170,240
136,320
2006
2005
$’000
$’000
Net deferred tax liability
The amounts shown in the balance sheet include the following Deferred tax assets to be recovered after more than 12 months
Deferred tax liabilities to be recovered within 12 months
36,956
30,771
208,340
141,836
The deferred tax charged in the income and expenditure account comprises the following temporary differences:
2006
$’000
2005
$’000
Pension and other post-employment benefit
39,558
15,039
20,761
14,093
Provisions
(5,698)
-
(20,701)
(3,479)
33,920
25,653
Interest receivable
60
31 march 2006
Page 26
31 March 2006
21. Payables
2006
2005
$’000
$’000
629,209
615,463
Due to the Inland Revenue
91,160
68,740
Trade
50,670
75,362
Other
4,733
8,570
775,772
768,135
2006
2005
$’000
$’000
Jamaica Defence Force
116
116
UNDP LEAP
116
116
CPEC
469
635
1,054
1,104
103
-
10,606
10,607
UNDP – CISCO
1,226
1,226
ICT4D
7,602
3,730
21,292
17,534
Accruals
22. Due to other Agencies
GTZ
INTEC
Inter American Development Bank
61
31 march 2006
Page 27
31 March 2006
23. Related Party Transactions
Key management compensation –
2006
$’000
2005
$’000
Salaries and other short-term employee benefits
29,711
25,065
Payroll taxes – employer portion
12,019
11,590
579
499
10,138
12,152
52,447
49,306
Pension benefits
Other
24. Commitments
(a) Capital commitments, authorised and contracted for at 31 March 2006 amounted to $157,854,000
(2005 – $10,994,000).
(b) Lease commitments
The future aggregate minimum lease payments are non-cancellable operating leases is as follows:
62
2006
$’000
2005
$’000
No later than 1 year
3,715
2,231
Later than 1 year and no later than 5 years
7,431
4,464
11,146
6,695
heart trust/Nta personnel
2006
EXECUTIVE TEAM
MANAGERS
Robert GregoryExecutive Director
Donald FosterChief Technical Director
Michael HosueChief Information Officer
Christine Dickson EdwardsSenior Director, HEART Trust Funds
Thomas McArdleSenior Director, Planning and Projects Development
Colin BarnettSenior Director, Human Resource Planning and Development
Paulette Dunn SmithSenior Director, National Council on Technical and
Vocational Education and Training (NCTVET)
Pamella McKenzieNational Programmes Director
Elvey HamiltonSpecial Programmes, NCTVET
Judith Lewis
Media Services
Clive GrossettEntrepreneurial Skills Development
Ann Marie SmithAdministration, VTDI
Orville ReidTechnical Services, VTDI
Dorothy Duncan EllisProfessional Studies
Joan Belfon
Marketing, Promotions and Communications
Myrnel SangsterNCTVET
Linette McLeanLearning Resources, Designs and Development
Vilma FreemanProfessional Guidance Information Services (PROGIS)
Beverly ClarkeLearning for Earning Activity Programme
Joan NicholasCentral Administration – National TVET Centre
Marcia HectorOffice Services and Employee Relations
Marcia HugginsPurchasing
Sonia IngletonHuman Resources
Kenrick SteeleTechnical Services – Information Technology Centre (ITC)
Leecep SterlingSystems Development
Patricia Johnson SmallInstitutional Based Training Department
Joan FindleyInstitutional Based Training Department
Odette BrownInstitutional Based Training Department
Yvette BachelorCompliance
Margaret MaraghCompliance
Natalie Ferreira Reid NCTVET
Daphne SimmondsManagement Information Systems
DIRECTORS
Clover BarnettLearning Management Services
Dayn Telfer
Finance and Accounting
Sonia LynchPersonnel and Administration
Karen GayleInstitutional Based Training
Kevin MullingsNational Programmes
Cora RickettsCompliance
Joyce WilsonCommunity Based Training
Mark ThomasCommunications
Dermon SpenceEbony Park Academy
Nursita JohnsonRegional Programmes Services
Michael HamiltonBuilding and Properties
Loveda JonesTechnical High School Development Project
Malcolm CameronManagement Operations Analysis and Internal Audit
Samuel BowenCaribbean Institute of Technology
Ludlow ThompsonOccupational Standards, NCTVET
Jennifer WalkerQuality Assurance, NCTVET
Sonia Bennett Cunningham Vocational Training and Development Institute
Robert GreenStrategic Workforce Development
Kenneth MorrisonOperational Planning and Performance Monitoring
Elizabeth TerryProjects and Partnerships
Kerron Lindo
Research and Evaluation
Sandra BerryLift Up Jamaica
Marcia McKenzieOrganisational Research and Development
REGIONAL MANAGERS
Cynthis DewdneySouth Eastern
Charmaine Hutchinson DixonSouth Western
Merton JonesNorth Western
George ColemanNorthern
63
Institutional Based Managers
and management advisory committee chairs
COMMITTEE Chairs
IBT MANAGERS
Leonie Dunwell
Kenilworth
Richard CarterPortmore
Novelette Denton PrinceSchool of Cosmetology
Sandra McClymontEbony Park
Arden GrantGarmex
Denworth Finnikin
Jamaican German Automotive School
Vent BrownCornwall Automotive Training Institute
Winston FletcherNational Tools and Engineering Institute
Hugh Wint
Janet Dyer
Runaway Bay HEART Training Institute
Kerry-Ann Duhaney PalmerRockfort Vocational Training Centre (VTC)
Maxine Chambers
Falmouth VTC
Donovan JonesNewport VTC
Colin HitchmanCulloden VTC
Elain Holloway
Junction VTC
Yvonne Beckford HewittBoys’ Town VTC
Jacqueline Bonnick
Beechamville VTC
Marcus NashLluidas Vale VTC
Andrew WaltersPort Maria VTC
Philadolph GriffithsOld Harbour VTC
Elaine ShakesSeaford Town VTC
Althea LawrenceGranville VTC
Novelette Myers
Above Rocks VTC
Franklyn Wright
Buff Bay VTC
Ivolyn DillonPetersfield VTC
Delmarie Lewis
Black River VTC
64
Kenilworth
Jean Jackson
Runaway Bay
Josef Forstmyr
CATIGlaister Duhaney
Port MariaPixley Irons
Junction
Rupert Miller
NTEILouis E. Aiken
Old HarbourLisander Lewis
BeechamvilleCreighton Knight
Ebony ParkHopeton Fraser
Above Rocks
Bro. Michael Duffy
JAGAS
Marjorie Borough
Culloden
Jeremy Jones
Buff Bay
Beryl Phillips
Black River
Keith Bell
School of CosmetologySherine Shakes
Lluidas ValeTony Lewars
PetersfieldHinds U. Johnson
Falmouth
Jaqueline Osynth Green
Stony Hill
Dr. Claudette William-Myers
RockfortGlenroy Leslie
Boys’ TownCarl Goodison
GranvilleInlen Johnson
GarmexCheralee Morgan
Portmore
Michael Archer
Seaford Town
Most Rev. Charles Dufour
Newport
Radcliffe Walker

contents - HEART Trust/NTA

Transcription

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