Final_HEART_Trust-NTA_Annual_Report_2010-2011 by diG Jamaica

HNTA11-007 - Annual Report 2010_CVR.indd 1

20/7/11 16:17:16

Vision 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.

Mission To enable the provision of technical and vocational education in both the public and private sectors so as to produce and sustain a competitive workforce consistent with the need for economic growth and development and to promote quality, relevance, efficiency and equity in the training system.

Content

Message

Minister of Education

Message - Minister of Education

Message - Chairman

The Hon. Andrew Holness, M.P. 06

Board of Directors

Committees of the Board

Corporate Governance Report

Audit Committee Report

Board of Directors’ Compensation

Executive Director’s Report

Executive Team

Executive Compensation

Performance - The National Training System

Success Story - Adrian McIntosh

WorldSkills Jamaica 2010

Jamaica/Brazil Bilateral Agreement

Career Advancement Programme Grows

Success Story - Janelle Pantry

HEART College of Beauty Services

Success Story - Hesroy Dwyer

StyleWeek 2010

Auditor’s Report

Financial Statement and Accompanying Notes

Our People

Where We Are

Minister of Education

During the 2010-11 fiscal period, the Ministry of Education continued to work very closely with the HEART Trust/NTA in an effort to provide more solutions, especially for young Jamaicans leaving school and getting ready to enter a very competitive job market. The work of the National Training Agency is pivotal if Jamaica is to attain the objectives of the 2030 Vision as outlined in the National Development Plan. Vision 2030 provides a road map for making Jamaica the place of choice to live, work, raise families and do business. In order for us to achieve this, we must reduce poverty and give more Jamaicans an opportunity to be gainfully employed. Research has shown that low educational attainment and belowaverage skill levels represent a serious obstacle to poverty reduction. It is against this background that the HEART Trust/NTA, which operates under the auspices of the Ministry of Education, has been mandated to explore and implement a variety of solutions to effect improvement in these critical areas. The Agency provides training in a vast array of skill areas for approximately 80,000 Jamaicans every year, in addition to providing other solutions for ‘at-risk’ youth and those who are below the educational standard to benefit from the training. This process must continue in the coming years if the country expects to meet the Vision 2030 goals, as we seek to promote equitable access and opportunities for the creation of economic assets, and eventually breaking the cycle of poverty in many families. It is against this background that the Ministry is pleased that the management and staff of the HEART Trust/NTA responded positively to the Board’s mandate for a restructuring of the Organisation. The rollout of HEART’s Regionalisation Programme is a step in the right direction. It will ensure that trainees at different levels can gain the competencies they need to start their careers, either as employees or as entrepreneurs. The Ministry supports this strategic shift and anticipates that it will enable the Agency to better utilise its resources to give more Jamaicans the skills to engage in more productive and meaningful work. The HEART College of Beauty Services, launched in March 2011, is the first of a series of HEART Colleges to be established within the next three years. These Colleges place the National Training Agency in a position to offer the type of applications-based training, which is commonplace in Polytechnic Colleges in Canada, Germany and Australia.

The Ministry is also pleased that the HEART Trust/NTA remains a committed partner in the Career Advancement Programme (CAP), through its effective management and expansion of the Senior School component of the Programme. The CAP, an initiative of the Ministry, had a positive impact on Senior High School students who have not matriculated to sixth form or tertiary education as it allows them to spend two extra years in school, honing their vocational, academic and social skills, to adequately prepare them for the workforce. The CAP is very special to the Ministry because it lays the foundation for the introduction of a National Apprenticeship Programme in Jamaica. We expect that more young people will have access to vocational training, and there will be a more structured transition from school to work, a decisive element of Jamaica’s 2030 Vision. Although there is still a long way to go, the Ministry is optimistic that the Programme will make a significant difference in many lives. At the end of the last Fiscal Year, I appointed a new Board of Directors for the National Training Agency, which remains under the chairmanship of Dr. Nigel Clarke. I want to take this opportunity to thank all the Board members who served the Trust in the review period and to welcome the new members. The Ministry is confident that the new team will ensure that the strategic plans of the Agency will be successfully implemented. Jamaica can ill-afford to be left behind in the training and development of our workforce, and the new Board is acutely cognizant of that fact. Their mandate is to take the necessary steps to place our working age citizens in a position where they have the skills and competencies to compete effectively in the global market. I am sure the new Board will work very closely with HEART’s Executive Director, Dr. Carolyn Hayle, and the Management and Staff of the Agency, to ensure that this mandate is realised.

The Hon. Andrew Holness, M.P. Minister of Education

HEART Trust/NTA Annual Report 2010

Message

Chairman

Nigel Clarke, Ph.D. Chairman

The HEART Trust/NTA continued to work with determination to ensure that the Nation’s Human Resource is keeping pace with international standards and is able to rise to the challenge of global competition. As such, for the Fiscal Year 2010 – 2011, the Board of Directors mandated the Management and Staff of the Trust to reorganise the National Training System to make it more relevant to the needs of Industry. That process dominated the operations of the Agency in the current review period and although we are still in the initial stages, the Board is pleased that decisive steps have been taken to reorient the system so that our trainees can emerge in a state of readiness to engage in productive enterprise.

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The revolutionary Integrated Training System has provided a formidable response to the social, economic and educational needs of the society. Its focus is intertwined with our mandate to be a source of unrivalled support to the business sector and the citizens of this Country. This new system has a three tiered focus which includes the delivery of higher quality programmes; provision of more opportunities for industry-based training through productive enterprises; and lastly to the development of enterprises of various sizes through a unique incubator experience. These initiatives have equipped us to deal more directly with the socio-economic issues faced by members of Jamaica’s micro, small and medium sized business community. We recognise that the road to recovery has been a difficult one for the business owners who struggle with high operational costs and the absence of financial and other critical resources. Amid these challenges a growing number of young persons have embraced entrepreneurship as a means of livelihood. Many of these entrepreneurs see training at the HEART Trust/NTA as the genesis of career and business success and our programmes assist them in developing and growing their businesses. Enrolment in HEART Trust/NTA surpassed the annual target by 3% resulting in 86,402 individuals being trained. The National Council on Technical Vocational Education and Training (NCTVET) achieved 92% of its annual target issuing a total of 25,686 NVQ-J certificates while 1,476 individuals were certified after completing training at HEART Trust/ NTA Caribbean Institute of Technology (CIT), and Vocational Training and Development Institute (VTDI). The Career Advancement Programme (CAP) is now fully operational. This initiative represents a partnership with the Ministry of Education, The HEART Trust/NTA and several key development partners. The CAP now has

54 schools enrolled in its programmes, a total of 9,557 students. This initiative has given our Organisation an enviable position to strengthen Career Development and to reach many of the persons who would not have otherwise been able to access these resources. Through this relationship, the Trust is given the unique opportunity to ‘sell’ skills in a new and engaging way. Over the next two years the CAP will be expanded to include more schools and to effect greater change in the education system and the wider society.

Over the last year we have placed emphasis on our compliance with the requirements of the Public Bodies Management and Accountability Act. The Organisation received a Level 1 rating (97%) from the Office of the Contractor General (OCG) for the last two quarters. This was achieved through stringent management of our procurement procedures resulting in a letter of commendation from the OCG. During the 2010-2011 year, the HEART Trust/NTA engaged the services of PriceWaterhouseCoopers to conduct a management audit and is currently in the process of implementing the ensuing recommendations. Financially, the Trust from which we maintain our operations is in good standing. For another year we reported a surplus, which is exceptional news in light of the relatively slow rise in the macroeconomic environment. The Executive and Operational teams must be commended for successfully implementing the strategic goals for 20102011. I also wish to applaud the stewardship of the Board which guided the Organisation through a productive year and welcome the new members who have joined us for the 2011-2012 period. As we enter our 30th year, I am particularly proud to lead an Organisation which plays such a fundamental role in National Development. I look forward to working with this dedicated Team to develop productive individuals who drive business competitiveness and ultimately national prosperity.

We have also strengthened our relationship with the traditional tertiary level institutions. The Workforce College model has allowed us to offer higher level programmes and to forge new friendships with traditional institutions. The recently rebranded HEART College of Beauty Services has already developed Diploma and Associate Degree programmes through such partnerships. The Organisation is in the process of cultivating close relationships with the University of Technology (Jamaica), the University of the West Indies, the Mico University, Northern Caribbean University, Caribbean Examination Council (CXC) and the Council of Community Colleges. Through these partnerships, students of HEART Trust/NTA will be able to matriculate directly into tertiary level institutions.

HEART Trust/NTA Annual Report 2010

Board of Directors

Board of Directors 1. 2. 3. 4. 5. 6. 7. 8. 9.

Dr. Nigel Clarke, Chairman Dr. Carolyn Hayle,

Committees of the Board 2

Executive Director

Mr. Ruel Reid Col. Dr. Rocky Meade Mr. Earl Moore Mr. Gresford Smith Mr. Peter Sangster Mr. Clayson Panton Dr. Trevor Hamilton

Names

Information & General Corporate Audit Finance Communication Projects & Board Governance Technologies Programmes

Dr. Nigel Clarke Dr. Chadwick Anderson Mr. Alan Beckford** Mr. Fabian Brown Dr. Anne Crick

Mr. Stanley Dunwell Dr. Trevor Hamilton Dr. Carolyn Hayle Col. Dr. Rocky Meade Mr. Earl Moore Mr. Clayson Panton Mr. Ruel Reid

10. Dr. Anne Crick 11. Mr. Stanley Dunwell 12. Mr. Delroy Williams 13. Mr. Fabian Brown 14. Dr. Chadwick Anderson 15. Mr. Timothy Wilson 16. Mr. Alan Beckford 17. Mrs. Audrey Sewell 18. Ms. Debbie-Ann Robinson

Mr. Peter Sangster Mrs. Audrey Sewell* Mr. Gresford Smith Mr. Delroy Williams Mr. Timothy Wilson Mrs. Janelle Muschette Leiba Mr. Michael Tucker

Mr. Robert Clarke Ms. Rosemarie Henry Mr. Courtney Miller Mr. Henry Pratt Mrs. Winsome Gordon Mr. Carlton Samuels

Mr. Courtland Soares

Ms. Anya Schnoor

Mr. Lenworth Taylor Mr. Doug Brooks

• • • • • • • • • • • • • • • • •

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

White Dots – Committee Chairs * Resigned June 28, 2010

•

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Human Resource

** Appointed August 30, 2010

HEART Trust/NTA Annual Report 2010

REPORT

Report

Corporate Governance

Audit Committee

Clayson Panton

Ruel Reid

Chairman,

Chairman, Audit Committee

Corporate Governance Committee

Corporate Governance remained a priority area for the Board of Directors of the HEART Trust/NTA during the period 2010-2011. The key issues deliberated were:

• •

Draft Corporate Governance Framework for Public Bodies prepared by Cabinet Office Amendments to the Public Bodies Management & Accountability Act

•

Implementation of the Enterprise Risk Management Policy

•

Corporate Compliance with the Statutory, Regulatory and Policy Requirements impacting the Organisation

•

Information and Communication Technologies Governance

•

Energy Conservation & Environmental Management Policy

•

Board Evaluation

In full observance of its commitment to transparency, all Board Members and Staff were required to submit a signed Conflict of Interest Declaration Form and a signed Code of Ethics Agreement. The annual Board Evaluation exercise was conducted with the membership being satisfied with the leadership and effectiveness of the Board. The Board executed its mandate to provide strategic guidance and oversight direction to management to ensure that management performed capably. The Corporate Strategic Plan 2010-2014 and the Corporate Operational Plan 2011-2012 were reviewed and approved by the Board. Through this process, the Board monitored the alignment of corporate objectives, control processes and relevant policies with the mission of the Organisation.

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The Board held ten (10) scheduled meetings, and also met on one (1) additional occasion to address business critical issues. The six (6) Sub-Committees (Finance, Audit, Corporate Governance, Information and Communication Technologies, Projects and Human Resource) also met regularly during the review period. All Committees maintained full membership. Board Directors and Committee Members were required to attend meetings regularly and fully participate.

The Audit Committee is an integral part of the

Through the Corporate Governance Sub-Committee, the Board conducted periodic reviews of select policies and practices in force at the Organisation. Based on the recommendations of the Corporate Governance SubCommittee, the Board:

Among the main responsibilities of the Committee are:

• •

Maintained oversight of Enterprise Risk Management Championed the need for a suitable Energy Conservation Policy and general Environmental Management as part of its commitment to Corporate Social Responsibility

The Corporate Governance Sub-Committee is comprised of non-Executive Directors and Independent members. The Committee was appointed on April 1, 2008 and the membership consists of Mr. Clayson Panton (Chairman), Mr. Fabian Brown, Dr. Anne Crick and Mrs. Audrey Sewell as Board Members. Owing to a policy shift, Permanent Secretaries were no longer eligible to serve on the Boards of Agencies for which they were responsible. Accordingly, Mrs. Sewell, who also serves as the Permanent Secretary in the Ministry of Education, stepped down from the Board and all committees. There are also two external members, Mr. Michael Tucker and Mrs. Janelle Muschette-Leiba who were co-opted from January 2009 to widen the breadth of experience, skills and expertise required to guide the Board and the Organisation. The Committee met six (6) times for the year.

corporate governance process of the HEART Trust/NTA. The Committee assists the Board with its oversight function; it 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. The Audit Committee is independent of management and comprises non-Executive Directors and other qualified external professionals.

•

Ensuring the integrity of the financial statements of the Trust

•

Monitoring the performance of the Trust’s internal audit function

•

Assessing the policies regarding the adequacy, efficiency and effectiveness of internal controls used by the Trust over accounting, financial reporting, operational and administrative systems, and thereafter advise the Board

•

Advising the Board on practices and procedures which will promote productivity and performance of the Trust

•

Reviewing the qualifications, independence and performance of the external auditors

•

Ensuring the adequacy and effectiveness of the Trust’s risk management

The external members are Mr. Robert Clarke, Ms. Rosemarie Henry, Mr. Courtney Miller and Mr. Henry Pratt. The Committee met seven (7) times for the year and achieved the following:

•

Reviewed medium term Internal Audit Strategic Plan 2010-2014

•

Reviewed audited Financial Statements for the year ended March 2010 and recommended them for approval

•

Reviewed and approved Internal Audit Work Plan for the year 2010-2011

•

Implemented a formal Reporting System on Management Priority Items, including ICT Governance, the Learning Management System and the Corporate Records Management System

•

Reviewed Management Strategy for implementation of the Enterprise Risk Management Policy

• •

Monitored Management Strategy of reporting Bad Debt Reviewed internal Audit Reports highlighting Operational and Control Issues and evaluating the Management Proposals for Corrective Action.

The Committee was appointed on April 1, 2008, and in compliance with the Public Bodies Management and Accountability Act, the Committee included four (4) external members and three (3) Board members. Mr. Ruel Reid serves as Chairman of the Committee. Fellow Board Members serving on this Committee are Mr. Clayson Panton and Mr. Timothy Wilson.

HEART Trust/NTA Annual Report 2010

Board of Directors

Report

Compensation

Executive Director

Position

of Director Fees ($)

Motor Vehicle Upkeep/Travelling or Value of Assignment of Motor Vehicle Honoraria ($) ($)

All Other Compensation including Non-Cash Benefits as applicable ($)

Total ($)

Carolyn Hayle, Ph.D. Executive Director

Chairman

18,000

176,000

194,000

Director 1

20,000

173,200

193,200

Director 2

14,000

87,500

101,500

Director 3

16,000

84,000

100,000

Director 4

16,000

90,800

106,800

Director 5

18,000

132,000

150,000

Director 6

18,000

111,500

129,500

Director 7

20,000

221,300

241,300

Director 8

20,000

164,200

184,200

Director 9

26,000

197,600

223,600

Director 10

20,000

208,600

228,600

Director 11

16,000

60,000

76,000

Director 12

20,000

229,700

249,700

Director 13

20,000

124,500

144,500

Director 14

12,000

76,500

88,500

Director 15

Director 16

Notes 1. Where a non-cash benefit is received (e.g. government housing), the value of that benefit shall be quantified and stated in the appropriate column above. 2. Director 15 is an employee of the Trust. 3. Directors 16 resigned during the reporting period.

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The Fiscal Year 2010-2011 was another pivotal one in the journey of the HEART Trust/National Training Agency, as the Organisation continued to implement its Technical Operating Model. This was designed to fulfil the mandate to train Jamaican citizens for employment, while regulating and setting standards for the Technical Vocational Education and Training (TVET) system in Jamaica. The Technical Operating Model allows us to provide the full National Vocational Qualification (NVQ-J) to our stakeholders. We have been responding to the needs of these stakeholders by implementing revised quality policies and procedures which are largely driven by the Labour Market and standards set by employers.

ROLL-OUT OF REGIONALISATION PROGRAMME A critical component of our multi-faceted response to the market is the start of the regionalisation of our services offered at our training points island-wide through the National Programmes Division. This programme, still in its early stages, is a part of the National Training Agency’s continuous effort to implement new strategies to improve our mode of operation and service quality. It is also part of a wider movement of integrating our services to ensure that we are giving stakeholders more value for their money. Through this methodology, we are making important strides to adequately address the emerging needs of the country. The regionalised structure will operate within five (5) regions and will feature:

•

HEART Colleges, TVET Institutes and Learning Centres – these were formerly under the umbrella of Institutional Based Training (IBT)

•

Workforce Solutions – formerly Enterprise Based Training (EBT)

•

Community Training Intervention (CTI) – formerly Community Based Training (CBT)

• •

The Career Advancement Programme (CAP); and Career Development Services.

It is our expectation that in the 2011-2012 fiscal period, the Regionalisation Programme will continue apace with the rebranding of several institutions and programmes so that they reflect the current market needs in a more appropriate manner.

INTRODUCTION OF WORKFORCE COLLEGES AND TVET INSTITUTES On March 30, 2011, the HEART College of Beauty Services, the first of the Workforce Colleges was unveiled. In the pending Fiscal Year, the Montego Bay-based Caribbean Institute of Technology and the Runaway Bay HEART Hotel are timetabled to be respectively rebranded as the HEART College of Innovation & Technology and The Cardiff Hotel/HEART College of Hospitality. By 2014, we will establish ten (10) Workforce Colleges along with six (6) TVET Institutes. Each Workforce College (formerly HEART Academies) will focus on the provision of higher level training. These institutions encompass three signature elements – a Productive Enterprise, a robust Internship Programme and an Incubator Programme aimed at shaping entrepreneurs. The Productive Enterprises will facilitate industry-based training by providing the participants with hands-on experience in producing goods and services in a live business environment. This experiential learning will be facilitated through our Internship Programme, which is not limited to HEART Trust/NTA graduates, but is also available to students from our partner institutions such as Universities and Community Colleges. The Incubator Programme provides an opportunity for budding entrepreneurs to establish and grow their businesses.

HEART Trust/NTA Annual Report 2010

Report

Executive Director (continued) Under the programme, participants benefit from equipment, low rent facilities and technical advice, thus enabling them to build their client base and earn income. These Workforce Colleges are the “finishing schools” which attest to the competence of the interns before certification is awarded by the National Council on Technical Vocational Education and Training (NCTVET). This means that all our graduates will be certified competent, not just for a single skill component, but for a set of competencies which can provide them with a rewarding and prosperous career path, as employees or business owners. This is a strong signal that certification is an instrument of trade. With the upgrading of the Academies to Workforce Colleges, the TVET Institutes will focus on Levels 3 to 4, preparing graduates for matriculation to the Workforce Colleges, where they can further hone the competencies required for their respective careers. The CAP programme and our Community Training Intervention will continue to offer Levels 1 and 2 training.

COMPETING AT INTERNATIONAL LEVELS The HEART Trust/NTA has fielded competitors in the WorldSkills International Skills Competition for several years. This year, we had the honour of hosting the WorldSkills General Assembly which brings together the delegates from the participating WorldSkills countries around the World. It was a very proud moment for the Organisation, as delegates from 33 countries experienced our Country first-hand and saw our Technical Vocational Education and Training (TVET) programme in action. We also simultaneously staged our National Skills Competition which was geared towards selecting the team to compete in the next International Competition slated for London in October 2011. As a result of this initiative, the Australian delegation invited our WorldSkills’ International team to participate in their National Skills Competition in July 2011. This will allow our competitors to further hone their skills in a highly competitive environment, building their confidence for London 2011.

PERFORMANCE OF THE NATIONAL TRAINING AGENCY During the period under review, the National Training Programme and the operations of the HEART Trust/NTA continued to be funded mainly by the 3% payroll contributions from the Jamaican employers. A total of 18,316 employers made contributions of J$6,045,764,882 to the HEART Trust Fund for the period 2010-2011. This represented an increase of 10.41% over the previous year’s contributions of J$5,475,869,685 and 17.55 % over the budgeted amount of J$5,141,301,416. The contributor base again widened with 1,130 employers making payments for the first time; and 982 audited firms making payments totalling J$186,361,897.31.

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Executive Team

We are very pleased that employers continue to support the Fund and continue to give their commitment to the development of the TVET system in Jamaica.

LOOKING AHEAD Shaping Industry The Trust is optimistic about the future and is determined to play its part in aiding our Country’s efforts to fuel National Development through the fulfilment of the Vision 2030 Plan. To this end, the HEART Trust/NTA continues to review and reshape its programmes to ensure that they reflect Industry Standards and the needs of our Country and business enterprises. A solid example of this will be the 2012 launch of The Cardiff Hotel signalling the first step in HEART’s foray in the nature boutique hotel market, attractions and heritage tourism. This will be further advanced with the retooling and rebranding of Kenilworth Academy, Ebony Park Academy and Falmouth Vocational Training Centre by 2014. Through these initiatives, the HEART Trust/NTA will be a major driver in shaping the supply chain that feeds tourism and cultivates a sustainable economy.

Shaping our Youth

1. Carolyn Hayle, Ph.D Executive Director

2. Dermon Spence

National Programmes Director

3. Ludlow Thompson

Acting Senior Director, NCTVET

4. Kevin Mullings

Senior Director - HEART Trust Fund

5. Kenneth Morrison

Acting Senior Director

- Planning and Projects Development

6. Luz Johnson

Acting Chief Information Officer

7. Wayne Wesley, Ph.D

Chief Technical Director

8. Colin Barnett

Senior Director

- Human Resource Planning

and Development

The Trust will continue to support the Ministry of Education’s goal to ensure greater access to education through the Career Advancement Programme (CAP). The CAP includes the creation of a Senior School (Grades 12 and 13) within the High School System and an Apprenticeship programme operated by the National Youth Service (NYS). This programme focuses on ensuring that the knowledge and training the island’s youth receive in the secondary school system translates to greater levels of employability. The CAP has given us a unique opportunity to further transform perceptions as it pertains to the TVET system. Ultimately, this guidance and training will become the nucleus of career development services offered at all secondary schools.

Shaping our Nation In the 2011-2012 Fiscal Year, we will continue to focus on the implementation of the Technical Operating Model, seeking to cement an effective structure that enables us to train our Jamaican workforce to international levels, thereby creating a competitive advantage in the global marketplace. The nine (9) Sectors (Agriculture, Manufacturing, Mining and Quarrying, Construction, Creative Industries, Sport, Information and Communication Technologies, Services and Tourism) have been tagged as strategic areas for national growth and development in the Vision 2030 Plan. Our strategic operational plan for the upcoming year is focused on delivering the training required for capacity building in these nine (9) sectors. In order to do so we will continue to improve the efficiencies within our systems. We will also intensify our drive to increase awareness of our products

and services among our stakeholders. Specific focus has been given to improving the technical aspects of our programmes through continuous review and infusion of international standards and trends. We also seek to provide additional channels through which more Jamaicans can access technical and vocational training. A critical element in achieving these objectives will be the strengthening of existing and the forging of new relationships with both local and international partners.

As we embark on a new year, I look forward to your continued support, as the HEART Trust/NTA trains for productivity, competitiveness and prosperity.

Carolyn Hayle, Ph.D. Executive Director

I must acknowledge the Team at the HEART Trust/NTA which has been and remains an integral part of the Trust’s success. Not only have they embraced the changes but have shown their commitment in implementing the structure which will enable us to improve on our service to our clients and other stakeholders. I am also deeply appreciative to those partners who share our Vision for a world-class workforce and continue to collaborate with us on many innovative initiatives.

HEART Trust/NTA Annual Report 2010

Performance

Executive Compensation Position of Executive

Executive Director

National Training System

Other Allowances ($)

Pension or Other Performance Travelling Retirement Year Salary Incentive Gratuity Allowance Benefits Uniform Petrol ($) ($) ($) ($) ($) ($) ($)

1/4/2010 - 31/03/2011

8,271,211 - - (Note 1A)

594,358 - 57,500 (Note 1B)

77,280 (Note 1B)

Payment in Lieu of Vacation Leave ($)

Non-Cash Benefits ($)

Total ($)

9,000,349

Integrated Training System National Programmes 1/4/2010 - Director 31/03/2011

5,413,283

540,241

796,500

541,328

57,500

256,619

416,406

8,021,877

Chief Technical Director

1/4/2010 - 31/03/2011

5,378,582 (Note 2)

342,286

796,500

57,500

246,234

6,821,102

Senior Director - HEART Trust Fund

1/4/2010 - 31/03/2011

4,996,877

664,585

796,500

249,844

57,500

268,327

384,375

7,418,008

Senior Director - Human Resource Planning Division (HRPD)

1/4/2010 - 31/03/2011

5,413,283

709,140

796,500

541,328

57,500

241,344

416,406

8,175,501

Senior Director - NCTVET (Note 3)

1/4/2010 - 31/03/2011

4,996,877

439,725

796,500

305,365

57,500

205,971

234,896

7,036,834

Chief Information Officer (Note 3)

1/4/2010 - 31/03/2011

4,996,877

345,479

659,310

796,500

57,500

258,147

7,113,813

Corporate Planner 1/4/2010 - & Senior Director - 31/03/2011 Planning & Projects Development Division (Note 3)

4,996,877

796,500

138,802

57,500

227,469

266,927

6,484,075

The major focus of the period under review was the rollout of the Integrated Training System which has paved the way for the HEART Trust/National Training Agency to positively respond to the needs of a competitive economic environment. Critically, the Integrated Training System has strengthened HEARTâ&#x20AC;&#x2122;s ability to effectively coordinate its suite of programmes at different levels in the Technical Vocational Education and Training (TVET) System. The process was guided by the core values of the Trust - Customer Satisfaction, Quality, Relevance, Partnership, Teamwork, Learning, Creativity and Innovation. The major objectives of the Integrated Training System include the facilitation of the delivery of higher level quality training programmes, the provision of relevant industry-based experience through a productive enterprise environment, and fostering the development and growth of micro, small and medium enterprises (MSMEs) through the incubator experience.

A central feature of the system was the development of Workforce Colleges and TVET Institutes. The Workforce Colleges will offer higher level experiential programmes (Level 5), and will focus on business incubation, internship and an associated production entity. The TVET Institutes will focus on Level 3 and Level 4 while offering selected Level 1 and Level 2 programmes. During 20102011, the corporate objective for the establishment of one Workforce College was achieved with the launch of the HEART College of Beauty Services in Kingston. A business incubator was also established at this College. The National Training Agency also launched new departments for Research and Development, as well as Entrepreneurship and Enterprise. The Vocational Training Development Institute (VTDI) was strengthened to operate at the tertiary level as a Polytechnic institution, to provide support and leadership in Programme and Institutional Development. Its aim is the training of TVET professionals focused on innovation, productivity and competitiveness.

Enrolment by Sector

Notes 1. Executive Director:

A - Basic salary includes retroactive payment for the period November 2009 to April 2010

B - Received travelling and petrol for the period July 2, 2010 to March 31, 2011

2. Received a salary adjustment effective May 2010 3. Officers acted for the period April 1, 2010 to March 31, 2011

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HEART Trust/NTA Annual Report 2010

Performance Performance

National Training System (continued)

New Structure

•

The National Programmes Division will facilitate the training delivery through five (5) regions, replacing the former structure, which consisted of Institution Based Training (IBT), Enterprise Based Training (EBT), Community Based Training (CBT) and Regional Programme Services. The new regions are:

Training & Certification

•

South East 1 - HEART College of Beauty Services, HEART College of Creative Industries, HEART College of Business Services, Lluidas Vale Learning Resource Centre and Above Rocks Learning Resource Centre South East 2 - HEART College of Construction Services, South Eastern TVET Institute, HEART College of Engineering Services, Paul Bogle Learning Resource Centre and LEAP Learning Resource Centre South West – HEART College of Agriculture and Ecological Sciences, HEART Caribbean Industrial College, South West TVET Institute and Old Harbour Learning Centre North East - HEART College of Hospitality, Northern TVET Institute of Tourism & Related Services and North East TVET Institute; and

The Trust began the rollout of a new Integrated Training System to better align itself with the needs of the market in a challenging and dynamic labour environment.

National Training System (continued)

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North West - Western TVET Institute of Tourism & Related Services, HEART College of Tourism & Recreation, TVET Institute of Automotive Engineering, HEART College of Innovation & Technology and Granville Learning Resource Centre

During the review period, the Trust’s training programmes were funded mainly by the 3% payroll deductions from Jamaican employers, with 18,316 companies contributing just over $6 billion. A total of 86,402 individuals accessed our training programmes, which was three percent above the target. The enrollees included 9,557 students in the Career Advancement Programme (CAP). Overall, 25,686 individuals received National Vocational Qualification of Jamaica (NVQ-J) Certification from Levels 1-5, while another 1,476 persons were certified in tertiary programmes at the Caribbean Institute of Technology (CIT) and the Vocational Training Development Institute (VTDI). There was a 96% completion rate among trainees.

The Career Advancement Programme There continues to be an ongoing collaboration with the Ministry of Education and other stakeholders in the roll-out of the Career Advancement Programme (CAP), which is a two-year extension of high school for some students to provide them with exposure and development in TVET, Entrepreneurship, Social Skills and Workplace etiquette. As part of CAP, there was the

Five Year Enrolment by Gender

administration of diagnostic testing and the renewal of a partnership with St. Vincent Strombi to facilitate training in Cosmetology and Furniture Making. A CAP website has been established to provide important information on Career Education.

Qualifications Developed During 2010-2011, thirty-three (33) new qualifications were developed, with approximately 54% of them being at Levels 4 and 5; additionally, 35 qualifications were revised.

Accredited Training OrganiSations (ATOs) All fifty (50) existing Accredited Training Organisations (ATOs) were maintained, while four (4) new ones were established - Bars to Go Training Institute; the Vere Technical High School; Allied Protection Limited; and the Shipping Association of Jamaica. A total of forty-two (42) Approved Centres, which were all CAP institutions, were also established and are now in operation. The expansion of the ATO network has given the National Training Agency more opportunities to assess and certify the workforce through partnerships with the Private Sector.

The expansion of the ATO network has given the National Training Agency more opportunities to assess and certify the workforce through partnership with the Private Sector.

Labour Market Research New sector plans were completed in Finance, Information Technology, Construction, and Secretarial/Administration. Labour market analysis of occupational data was

Certification

Enrolment by Qualification

HEART Trust/NTA Annual Report 2010

Performance success story

National Training System (continued)

completed and the information used to guide the redesign of our programme offerings. A TVET Manpower Projection and Gap Analysis was also completed which highlighted the requirements for employees by occupational areas in the various regions.

Significant emphasis was placed on compliance issues, as well as on conformance with the requirements of the Public Bodies Management and Accountability (PBMA) Act. The staff must be commended as the HEART Trust/NTA achieved a Level 1 rating (97%) from the Office of the Contractor General during the third and fourth quarters.

Adrian McIntosh From HEART Trainee to IT Specialist and HEART Values Icon

Management Audit During the 2010-2011 fiscal period, a Management Audit Report was completed by PriceWaterhouseCoopers and presented to the Board of Directors for review and approval. Based on the Report’s recommendations, the responsibilities of the Planning and Project Development Division were transferred to the Technical Services Division and the Office of the Executive Director.

Job Placement During 2010-2011, a total of 3,327 individuals were placed in jobs and 1,895 individuals placed on work experience, for a combined total of 5,222, which was 30% above the target.

Focus on Quality The National Training Agency continues to place emphasis on the quality of training provided by our institutions. It is against this background that a series of staff development workshops were organised to train staff in understanding Quality Management concepts; to develop and implement Quality Management Systems, and to better understand Process and Risk Management. The Agency also developed Quality Assurance and Training Outline Manuals.

The major objectives of the Integrated Training System include the provision of relevant industry-based experience through a productive enterprise environment, and fostering the development and growth of micro, small and medium enterprises (MSMEs) through the incubator experience.

While in training, Adrian distinguished himself as competent and was offered a permanent position at the National Training Agency in the field of Information Technology. For the past 10 years, he has excelled in this area and his mentors have been duly impressed. “While in the SL-TOP, Adrian was dedicated and resultsoriented and always seeking improved ways to get his daily tasks done in an efficient, effective and timely manner. He was warm, willing to learn and would not stop until he completed given tasks,” notes Nursita Johnson, one of his supervisors. Adrian has embraced the HEART Trust mantra of lifelong learning. Since completing the SL-TOP, he has furthered his professional and academic development by completing a Bachelor of Science Degree in Information Technology with Management Studies from the University of Technology (Jamaica). He also holds a Post Graduate Diploma in General Management from the MIND Institute, a Certificate in Project Management from the University of the West Indies and is currently pursuing a Master’s Degree in Business Administration at the University of New Orleans.

Values Icon 2010

Programme Areas by Gender The National Training Agency continues to provide many Jamaican youth with an opportunity to carve out niche careers, even against the backdrop of a challenging economic environment. Adrian McIntosh is one such beneficiary. After completing his A-Levels at the Portmore Community College, young Adrian was at a crossroads because of financial constraints and he decided to enrol in HEART’s School Leavers Training Opportunity Programme (SL-TOP) in order to further his development. “There was no funding for me to continue on to University and there was no point in me sitting idly at home. HEART SL-TOP was a great and logical choice that I am glad I made.”

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Adrian showers high praises on HEART’s SL-TOP intervention, noting that the on-the-job skills he honed in the programme provided him with a solid platform for success in the workplace. He believes that it was that foundation that helped him to be nominated for the HEART Trust/NTA Values Icon Award in 2009. The Award is based on outstanding work ethics, such as customer satisfaction, team work, and innovation, among others. Significantly, a year later, Adrian went one better, as not only was he again nominated, but was selected HEART Values Icon winner 2010. Adrian also has a social conscience. In 2008, he spearheaded the “Hearts of HEART” Charity Initiative that solicits support from the staff within the Trust. This initiative has assisted institutions such as Mustard Seed’s, ‘My Father’s House’ and the Maxfield Park Children’s Home. The IT specialist has big plans for the future, including owning his consultancy practice in Project Management. With his determination and positive attitude, there’s no doubt that this will also become a reality for the former HEART SL-TOP Trainee.

HEART Trust/NTA Annual Report 2010

Performance

1 GLOBAL NETWORKING: (L-R): Delegates from the United Arab Emirates and United States of America share thoughts at the WorldSkills International 60th Anniversary Banquet at The Wyndham, Kingston Hotel.

Jamaica hosts WorldSkills International

General Assembly 2010

2 OPENING CEREMONY: His Excellency, Sir Patrick Allen, Governor General of Jamaica (right) enjoys the Opening Ceremony of the 2010 National Skills Competition held at the National Indoor Sports Complex. Sharing in the moment are (L-R): Executive Director, HEART Trust/NTA Dr.. Carolyn Hayle; Chairman of HEART Trust/NTA, Dr. Nigel Clarke; Minister of Labour and Social Security, The Hon. Pearnel Charles; and President of WorldSkills International, Tjerk Dusseldorp.

WorldSkills International (WSI) is a not-for-profit Organisation comprising 53 member countries dedicated to raising the status and standards of vocational education and training worldwide. Its flagship programme is the biennial WorldSkills Competition which takes place in a member country every two years and brings together over 1,000 young people from across the globe to compete in skills ranging from cooking to web design. The competitors demonstrate their skills and competencies, competing for gold, silver, bronze medals and medallions of excellence.

3 His Excellency, Sir Patrick Allen (centre) and President of WorldSkills International Tjerk Dusseldorp speak about the importance of vocational training at the Opening Ceremony of the National Skills Competition. At right is Minister of Education, the Hon. Andrew Holness.

It was a proud moment

for the National Training Agency as Jamaica had the distinction of hosting the prestigious WorldSkills International (WSI) General Assembly on October 3-10, 2010, while simultaneously staging the 4th National Skills Competition. Jamaica won the bid to host the Assembly during the WSI Competition in Shizouka, Japan in 2007. Over 185 delegates from 41 countries attended and participated in the Assembly, which was held in Kingston.

...the biennial WorldSkills Competition takes place in a member country every two years and brings together over 1,000 young people from across the globe to compete in skills ranging from welding to web design. 20

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Jacqueline Wallder, Project Manager of WorldSkills Jamaica, says hosting the WSI General Assembly had numerous benefits. “The team gained valuable experience in planning and successfully executing an event of this magnitude, and it gave us an opportunity to showcase brand Jamaica in its entirety”. The National Skills Competition (NSC), staged at the University of Technology (Jamaica), was strategically executed during the week of the Assembly and provided an excellent platform for Jamaica to display its Technical Vocational Education and Training (TVET) system to the World. A youth forum involving 33 delegates was also hosted by WorldSkills Jamaica at the Knutsford Court Hotel. WorldSkills Jamaica showcased 379 competitors representing secondary schools, HEART Trust/NTA academies and vocational training centres, as well as tertiary and privately owned institutions from across the island. They participated in twelve skills sectors representing forty skill areas. The most outstanding competitors were selected to represent Jamaica at the next WorldSkills International Competition in London 2011 and Germany 2013.

4 CELEBRATING VOCATIONAL TRAINING: Prime Minister, The Hon. Bruce Golding greets Simon Bartley, President-Elect of WorldSkills International (WSI) at the WSI’s 60th Anniversary Banquet, where Mr. Golding presented the keynote address. Sharing in the exchange are The Hon. Andrew Holness (left) Minister of Education, and Tjerk Dusseldorp, President of WSI.

3 WorldSkills Jamaica (WSJ) was established in 2002, and was accorded full membership in WorldSkills International in May 2004. Jamaica was the first Caribbean nation to participate in the WorldSkills International Competition in Helsinki, Finland in 2005. Subsequently, there was participation in competitions held in Canada June 2007 (Skills Compétences Canada), Japan in November 2007, Canada in September 2009, and Brazil in March 2010. Jamaicans were awarded silver medals in Brazil (WorldSkills Americas) in the areas of Culinary Arts/Cooking and Hair Dressing. Following their participation at the General Assembly and observing the National Skills Competition, Barbados, through the Barbados TVET Council applied to WSI for membership and was accorded Associate Membership. This is welcome news given WSJ’s strategic plan to eventually host a regional competition (Caribbean Skills Competition).

HEART Trust/NTA Annual Report 2010

Partnerships and projects

Highlights

National Skills Competition

Portmore HEART Academy to benefit from

Jamaica/Brazil Bilateral Agreement

HEARTâ&#x20AC;&#x2122;s flagship training institution for the construction industry, the Portmore Academy, will be the major beneficiary of a 25-month bilateral agreement between Brazilâ&#x20AC;&#x2122;s National Industrial Training Service SENAI, and the HEART Trust/NTA. The Technical Cooperation Agreement, which was signed in September 2010, will result in a major refurbishing exercise at the Portmore facility to enhance its ability to offer higher-level training in eight (8) sub-sectors, namely: Masonry/Finishing, Metal Extrusion/Welding, Carpentry, Plumbing/Gasworks, Electrical Installation, Telecommunications, Refrigeration & Air Conditioning and Furniture Making. Several critical components of the Project were implemented in the 2010-2011 fiscal year, such as the establishment of a local Project Steering Committee and reporting structure, as well as the verification and selection of special equipment, which will be purchased to facilitate the advanced level training. Additionally, forty (40) HEART Trust/NTA instructors were selected for training in the eight (8) skill areas and this process will be conducted on-site at the Portmore HEART Academy after the new equipment has been installed. On completion of this module, eight (8) instructors will move on to further training in Brazil.

The Technical Cooperation Agreement, which was signed in September 2010, will result in a major refurbishing exercise at the Portmore facility in order to enhance its ability to offer higher-level training in eight (8) sub-sectors.

The SENAI-HEART partnership will also see additional HEART personnel participating in an orientation programme in Brazil to ensure the success and viability of the programme. During the initial phase of the partnership, the National Council on Technical Vocational Education and Training (NCTVET) will conduct a comprehensive review and mapping of the training plans and curricula provided by SENAI with the standards and best practices from the local construction industry.

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HEART Trust/NTA Annual Report 2010

Performance

HEART Trust/NTA Training Cohorts

The Career Advancement Programme Grows

• Extension of secondary school system to include Grades 12 & 13. • Delivery of NVQ-J - Levels 1 & 2

• Identify and place marginalised youth in gainful activities Senior School

Parallel Programmes

HEART continues to play key role in Senior School component • Industry based experience

The HEART Trust/National Training Agency continues to be one of the central partners in the Career Advancement Programme (CAP), an initiative aimed at widening access to quality education in Jamaica for all students through structured learning, education and training. The programme comprises the National Training Agency’s network of institutions, Parallel Programmes for special groups such as “at-risk” youth, an Apprentice Programme and the Senior School Programme. A key plank of CAP is the Senior School Programme, which is an extension of the Secondary School System through the creation of Grades 12 and 13. The programme, launched in the 2009-2010 Financial

Minister of Education, The Honourable Andrew Holness, M.P. in discussion with students enrolled in the Career Advancement Programme at the Penwood High School.

Year, has continued in the period under review, with the introduction of curriculum and courses beyond the regular secondary education curriculum and a focus on better preparing students for their careers. The National Training Agency spearheads CAP’s Senior Schools Programme with a suite of selected career development programmes, customised career education, and elective training in technical vocational specialisations. Students are also introduced to training in Life-coping Skills and Personal Development. Following the successful implementation of the programme in eleven (11) Secondary High Schools in 2009-2010, another forty-three (43) schools were added in 2010-2011, bringing the total cohort of youth impacted to over nine thousand (9,000).

• Professional Certification and Licensure

Workforce Colleges and TVET Institutes

• Delivery of NVQ-J - Levels 1 – 5 • Prior Learning certification

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• Work-based Apprenticeship Programme (NYS)

• School-based • Government Service • Community Service

• Tertiary Level Programmes

CAP caters to the students’ awareness of national symbols, their meanings and their behaviour towards them. In this course, special training is given in Civics; Values; Law and Order and Citizenship. The programme also incorporates school-based and work-based apprenticeship with a flexible schedule of classes, including afternoons, weekends and summer holidays. Exposure to basic skills in entrepreneurship, as well as career and personal development, are also featured. Students in the Senior School component benefit from the linkages created between training opportunities and career possibilities. They also stand to gain from skills certifications which are prerequisites for achieving the National Vocational Qualification of Jamaica (NVQJ) and the Caribbean Vocational Qualification (CVQ). Other partners in the CAP are the Jamaica Foundation for Lifelong Learning, the National Youth Service, the National Council on Technical Vocational Education and Training, and the Vocational Training Development Institute. In addition to the main participating agencies, a broad stakeholder grouping has also come on board. These include the Jamaica Employers Federation, the Social Development Commission, Ministry of Labour, Ministry of Youth, Sports and Culture, the Jamaica Constabulary Force, the Jamaica Defence Force, the Council of Community Colleges of Jamaica and the Fresh Start Jamaica group.

(a) At-risk (b) Unattached (c) Wards of the State (d) Special Needs; and (e) 20 to 24 year olds

The Development Programmes within the schools are to guide students through their career decision-making process, build appropriate and positive values and attitudes, as well as to facilitate their transition into a professional life.

HEART Trust/NTA Annual Report 2010

success story

Janelle Pantry

From Tourism Management to Interior Designer HEART helped her realise her dream

Janelle Pantry, one of Jamaica’s young, bright entrepreneurs, had all the makings for a successful and rewarding career in the field of Hospitality, having graduated from the University of the West Indies (UWI) with a Degree in Tourism Management. While her head pointed to Tourism, her heart was leading to her passion – Interior Decorating. “From I was a little girl I had a deep love for Interior Decorating. I would spend hours redecorating my room and our house and I knew that this was my destiny”, said Pantry. After completing her studies at UWI, Janelle was preparing to launch into the Tourism field, but not before taking up an opportunity to go to Austria to learn another language, which she felt was an asset to her fledgling career. It was while in Europe that her love for Interior Designing matured and she could no longer resist what she believed was her true calling. “I was totally enthralled by what I saw there and I knew immediately that this was what I wanted to do. So I did my research and I was informed by friends that the best place to begin the pursuit of my dream to be a first-class interior designer was at HEART’s Garmex Academy”.

“From I was a little girl I had a deep love for Interior Decorating. I would spend hours redecorating my room and our house and I knew that this was my destiny”

As soon as the budding interior designer returned to Jamaica from Austria, she promptly enrolled at Garmex and the rest, as they say, is history. “The courses at Garmex are excellent. They are comprehensive, giving you in-depth exposure and training in your skill area. I thoroughly enjoyed the experience as the learning was rich and practical with a clear focus on entrepreneurship,” says Janelle.

LIFE AS AN ENTREPRENEUR After successfully completing the Garmex suite of courses and armed with knowledge, skill and innate creativity, Janelle opened up Spaces Limited. Located in the Winchester Business Centre in Kingston, Spaces specialises in furniture and home accessories. It was an instant success as she brought a fresh and exciting interior designing approach to the local market. The first intent of her business was to provide unique accent pieces to her clientele, but when her customers started putting in offers for her display pieces, she branched out in areas such as decorating consulting. Today, Janelle Pantry is living her dream and she attributes the realisation of her ambitions and the success of her business to the training she received at HEART’s Garmex Academy. Now she is looking at bigger and better things. “I am confident that my business, Spaces Limited, will soar to new heights, beyond the borders of Jamaica, into the global market,” says Janelle.

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HEART Trust/NTA Annual Report 2010

Performance industry internships for trainees. The facility boasts an Incubator Programme, which provides critical business advisory services to support entrepreneurs wishing to start their own business.

HEART ‘makes over’ the School of Cosmetology 1

Speaking at the official launch of the College in March 2011, Minister of Education, The Honourable Andrew Holness, praised the Trust for its new operating model, which would provide more opportunities for the training and certification of Jamaicans. Minister Holness said that the Ministry of Education supports the concept of the Workforce Colleges as there was a significant increase in the number of students interested in doing vocational application-based training. He said it was against this background that the Government had taken the initiative to move HEART’s Level 1 and Level 2 training into schools,

community-based organisations and training partner facilities. This, he said, would allow the National Training Agency to elevate its Academies into higher level programmes that cater for Levels 3 to 5.

3 On March 30, 2011, the HEART Trust/National Training Agency unveiled the first of its Workforce Colleges, the HEART College of Beauty Services, as part of the implementation of its Regionalisation Plan. The College, formerly the HEART School of Cosmetology, is located on Hope Road in Kingston, and leads the way for the other nine (9) Colleges, which will be launched over the next three (3) years. The HEART College of Beauty Services is the leading training institution of its kind in the Caribbean and offers up to Level 4 (Associate Degree) in Professional Make-up Artistry and Hairdressing. Spa Therapy, Massage Therapy and General Beauty Therapy courses will be offered up to Level 3 (Diploma). The College’s full service salon was rebranded “Salon 10”. This facility offers a range of beauty services to the public, including hair, nail and skin care, barbering services, body treatments and massage therapy at competitive prices. Salon 10 also facilitates internship for the graduates of the College and other training institutions. The HEART College of Beauty Services represents an innovative training approach that facilitates practical learning in a simulated lab environment, supported by

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The HEART model of vocational training which was launched in 1983, was the brainchild of former Prime Minister, The Most Honourable Edward Seaga. In his address at the launch ceremony, Mr. Seaga said his inspiration emerged from a need to train young persons who were leaving school without the necessary skills for the workforce or the required matriculation for tertiary education. “HEART made it possible for learners with natural talents to be trained to participate equally in the workforce and to be recognised,” he noted. Mr. Seaga outlined HEART’s expanded role since its inception in 1982 and said the Institution now plays a much more significant role in workforce training at the national level.

1 Mrs. Sandra Ramsey, first Manager of the Salon at the HEART School of Cosmetology greets former Prime Minister, The Most Honourable Edward Seaga. Looking on are Minister of Education, The Honourable Andrew Holness and Dr. Carolyn Hayle, Executive Director, HEART Trust/NTA. 2 Michelle Moser-Meikle (right) of HCBS explains the nail care technique being taught by Miss Alia Wedderburn (2nd left) to HEART Trust founder, the Most Honourable Edward Seaga, and Minister of Education, The Honourable Andrew Holness. 3 Instructional demonstrations are facilitated by interactive technologies at the HEART College of Beauty Services. 4 Inside the spa training facilty.

treatment

5 A customer is attended to by a Salon 10 employee.

HEART Trust/NTA Annual Report 2010

Above Rocks VTC Cops HEART Safety Award success story

Hesroy Dwyer From construction site worker to electrical business entrepreneur

The expression

that age is just a number is a view shared by many persons but Hesroy Dwyer has proven this to be so. At age 31, he enrolled in the Electrical Installation Programme at the Newport Vocational Training Centre in Manchester and today he is the proud co-owner of Supreme Electrical Sales and Services, a partnership with his cousin Larry Peart. “It has always been my dream to own a business but I never had the requisite skills, knowledge and resources to do so, however, training with the HEART Trust/NTA has made it all possible”, said the elated entrepreneur.

“It has always been my dream to own a business but I never had the requisite skills, knowledge and resources to do so, however, training with the HEART Trust/NTA has made it all possible”.

Dwyer, who spent most of his early years working on construction sites, became fascinated with the work of Electrical Technicians to the point where he begged to learn the skill. Although he was taught the basics of the trade, he wanted to be certified competent.

While Dwyer continues to enjoy the success and growth of his business, he has not forgotten his roots. He constantly encourages those around him to get trained and certified in their respective skill areas. He can proudly say it has not fallen on deaf ears as 11 of his 12 member staff are trained by the National Training Agency and certified by the National Council on Technical and Vocational Education and Training (NCTVET).

“HEART did everything for me. They taught me the theory side of the job, developed my writing and communication skills and they taught me professionalism. What more could I ask for?” said Dwyer. Dwyer whose electrical company is based in Mandeville has undertaken major contracts islandwide and the company has even been short-listed for contracts overseas. Supreme Electrical Sales & Services has completed electrical installations at Bluefield High School (now Belmont Academy) in Westmoreland and for 100 houses in a development of the Bill Wright Construction Company in St. Catherine, among others. He states that the comprehensive training he received has empowered him to compete with contractors, and carry out major electrical tasks all over the world. His business partner agrees. “We saw the market for Electrical Technology in Mandeville and the wider region, and we discussed the business idea. However it wasn’t until Hesroy got his training at HEART before the business got off the ground. We are a team, he has the expertise and I have the financial resources”, says Larry Peart.

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Dwyer is grateful for the start that HEART has given him but he vows to continue the lifelong learning process with plans to pursue tertiary studies in Electrical Technology in the near future.

Mr. Michael Hamilton, Director, Building & Properties Department, HEART Trust/NTA, presents Mrs. Kerry-Ann Duhaney Palmer, Manager, Above Rocks Vocational Training Centre, with the 2010/2011 Safety Assessment Award.

Above Rocks Vocational Training Centre (VTC) is the winner of the inaugural HEART Trust/NTA 2010/2011 Safety Assessment Award. The training institution topped 26 others for the award with an overall rating of 4.91 (out of a total of 5). Newport VTC is the runner up with an overall rating of 4.89. “We are ecstatic yet humbled by the award,” said Above Rocks VTC Manager Kerry-Ann Duhaney Palmer. “We set out to win. We wanted to be the first to take home the trophy. Everyone was on board at every level. It was total buy in. Even our Management Advisory Committee members from our Board of Directors got involved.” The team was lead by Workplace Health and Safety Captain Bernard Easy. “Just because we are a small training centre located in the hills of St Catherine does not mean we should be daunted by the larger institutions,” Mrs. Palmer said. “We wanted to prove that good things happen at Above Rocks.” The institution plans to retain its title next year and the recommendations of the auditors are being reviewed for improvement.

RUNNER UP: Ms. Taayoo Murray (L), Acting Manager, Newport Vocational Training Centre, accepts the second place prize from Ms. Suzanne Scarlett, Manager - Safety & Security, HEART Trust/NTA.

Above Rocks VTC now offers Levels 1 & 2 training in food preparation, housekeeping, business administration, general construction and electrical installation.

The Safety Assessment Award is a part of the HEART Trust/NTA Workplace Health & Safety (WHS) Programme that aims to maintain and sustain a healthy and safe environment for employees, trainees, contractors and visitors. “As the National Training Agency, HEART sets and encourages safety standards,” says Suzanne Scarlett, Manager of Safety & Security. “We provide training and education, and encourage continual improvement in workplace safety and health.” The WHS programme covers both offices and training institutions. The competition, however, is only open to the institutions. “The programme is done bi-annually and uses the services of Professional External Assessors to conduct the audit, although the company engages the opinion of it employees to provide some of the best solutions to mitigate problems and hazards in their work space,” said the Safety & Security Manager. The assessment covers eight main areas such as: 1. Reporting, Record Keeping & Information Management 2. Housekeeping, Building & Grounds Condition 3. Health Awareness, Personal Wellness, Environmental & Conservation Programmes 4. Safety Promotion, Awareness & Training 5. Equipment Safety, Maintenance & Support Activities 6. Hazard Identification, Communication and Control 7. Fire Safety, Fire Prevention 8. Management, Staff & Trainee Participation, Business Continuity Planning “We want all our locations to operate and maintain the Occupational Safety Health (OSH) standards,” said Ms. Scarlett. “We hope that the Safety Assessment Award provides the motivation to sustain a healthy and safe environment.”

HEART Trust/NTA Annual Report 2010

partnerships and projects

HEART Trainees bask in StyleWeek 2010 In an innovative internship arrangement, one hundred and forty (140) HEART Trust/NTA trainees from the School of Cosmetology (now the HEART College of Beauty Services), the Garmex Academy, Boy’s Town Vocational Training Centre and the Stony Hill Academy, worked alongside top professionals in the fashion industry at StyleWeek 2010. The week-long event, staged by Saint International, provided the meeting place for HEART trainees to learn invaluable trade techniques and secrets from local and international models, fashion designers, event planners and make-up artistes. This partnership also facilitated workshops and seminars for the trainees on international trends in Make-up, Hair, Public Relations and Fashion Design. The sessions were delivered by local and international industry experts including Deiwght Peters from Jamaica; Ty-Ron Mayes and Michelle Huff from New York; Desmond Murray from London; Kevin O’Brian from Paris and top fashion designer, Allan Virgo from New York.

Participation in StyleWeek 2010 had a postive and lasting impact on the trainees, as the experience heightened their interest in pursuing various career options in the field of fashion. The week-long activities also gave the HEART Trust/NTA a ready audience to showcase its programmes and services. At selected events, patrons enjoyed complimentary make-overs and massages from the HEART School of Cosmetology team, as well as, a display of fashionable outfits by the Garmex Academy. Information on the courses offered at the HEART Trust/NTA were also readily available. Both the HEART Trust/NTA and Saint International were pleased with the StyleWeek collaboration, noting that it offered trainees a unique opportunity to get hands-on experience in the fashion industry. Already, the partners, are looking ahead to another successful partnership in 2011.

34 Independent Auditor’s Report to the Board of Directors Financial Statements 36 Statement of Comprehensive Income 37 Statement of Financial Position 38 Statement of Changes in Financing

The week-long event, staged by Saint International, provided the meeting place for HEART trainees to learn invaluable trade techniques and secrets from local and international models, fashion designers, event planners and make-up artistes. 32

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39 Statement of Cash Flows 40 Notes to the Financial Statements

HEART Trust/NTA Annual Report 2010

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Statement of Comprehensive Income Year ended 31 March 2011

Statement of Financial Position 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

2011

2010

2011

2010

Note

$’000

Note

$’000

Income Employers’ 3% contribution Finance income

5,473,373

155,850

244,512

Grants

192

Institutional earnings

531,371

601,539

Profit on sale of property, plant and equipment Other income

ASSETS

6,042,538

Expenses

1,446

2,782

20,954

266,596

6,752,159

6,588,994

Property, plant and equipment

1,960,556

1,935,084

Construction in progress

9,358

7,324

Post-employment benefit assets

1,553,860

1,396,211

Loans receivable

Investments

Intangible assets – computer software

1,550

3,361

350,961

356,933

12,942

15,786

3,889,227

3,714,699

Current Assets

Property costs

1,316,996

Administrative staff costs

915,733

86,609

Biological assets - livestock

26,407

23,418

Other operating costs

237,628

179,986

Inventories

86,753

78,419

Direct training costs

3,789,140

3,346,124

Receivables

222,987

245,890

6,259,497

4,791,273

Taxation recoverable

Surplus before Taxation

492,662

1,797,721

Cash and short term investments

(164,476 )

328,186

Taxation Net Surplus, being Total Comprehensive Income for the Year

1,178,554

Non-Current Assets

(527,181 ) 1,270,540

205,579

164,786

1,863,421

1,455,325

2,405,147

1,967,838

6,294,374

5,682,537

RESERVES

Accumulated HEART Fund LIABILITIES

3,962,103

3,633,917

Non-Current Liabilities

Post-employment benefit obligations

291,588

229,148

Deferred income taxes

493,234

413,097

784,822

642,245

Current Liabilities

Bank overdraft

Provision

11,500

Payables

1,322,595

991,849

140,759

306,180

Taxation payable Due to other agencies

79,977

85,518

4,118

11,328

1,547,449

1,406,375

6,294,374

5,682,537

Approved for issue by the Board of Directors on 30 June 2011 and signed on its behalf by:

........................................................... Dr. Nigel Clarke Director

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........................................................... Dr. Carolyn Hayle Director

HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Statement of Changes in Financing 31 March 2011

Statement of Cash Flow Year ended 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Accumulated

HEART Fund

$’000

Balance at 1 April 2009

2,763,377

Net surplus, being total comprehensive income for the year

1,270,540

Appropriation to the consolidated fund Balance at 31 March 2010 Net surplus, being total comprehensive income for the year Balance at 31 March 2011

2011

2010

Note

$’000

Cash Flow from Operating Activities Surplus for year Adjustments for:

(400,000 ) 3,633,917 328,186

11,655

12,238

Depreciation

178,162

182,482

Income tax charge

164,476

527,181

(155,520 )

(239,195 )

(95,208 )

(916,622 )

Changes in employee benefits

Gain on sale of property, plant and equipment

(1,446 )

430,305

Changes in operating assets and liabilities:

(2,782 ) 833,842

Biological assets

(2,989 )

938

Inventories

(8,334 )

330

Receivables

22,903

4,292

Taxation recoverable

(40,793 )

45,672

Payables

319,246

(137,478 )

Due to other agencies

(7,210 )

713,128

Interest received

164,940

251,189

Taxation paid

(249,760 )

(111,037 )

Cash provided by operating activities

628,309

879,601

Cash Flows from Investment Activities Proceeds from sale of property, plant and equipment

(8,147 ) 739,449

1,446 (202,411 )

3,391

Purchase of property, plant and equipment

Purchase of intangible asset

Proceeds from investments

250,000

100,775

(8,811 )

(148,562 ) (2,677 )

Purchase of investments

(320,631 )

(120,000 )

Expenditure on construction in progress

(2,453 )

(11,367 )

Cash used in investing activities

(282,860 )

(178,440 )

Cash Flows from Financing Activity

Appropriations to the Consolidated Fund

(400,000 )

Cash used in financing activity

(400,000 )

Effects of exchange rate changes on cash and cash equivalents

(11,216 )

3,831

Increase in cash and cash equivalents

334,233

304,992

996,494

691,502

1,330,727

996,494

Cash and cash equivalents at beginning of year CASH AND CASH EQUIVALENTS AT END OF YEAR

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1,270,540

328,186

Amortisation

Interest income

3,962,103

HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

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.

(a) Basis of preparation (continued) Standards and amendments to existing standards that are not yet effective, are relevant to the Trust’s operations and have not been early adopted by the Trust

The main activities of the Trust comprise the development of and provision of finance for training schemes, employment opportunities for trainees and the co-ordination of technical training at the national level in Jamaica.

At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards have been issued which were not effective at the date of the statement of financial position, and which the Trust has not early adopted. The Trust has assessed the relevance of all such new standards, interpretations and amendments and has determined that the following may be immediately relevant to its operations, and has concluded as follows:

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 trainees. 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. 2.

Summary of Significant Accounting Policies The principal financial accounting policies adopted 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 conformity with International Financial Reporting Standards (IFRS), and have been prepared under the historical cost convention. 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 management’s 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 5. Amendments to and interpretations of published standards effective in the current year which are relevant to the Trust’s operations Certain new interpretations and amendments 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 put into effect the following IFRS, which is immediately relevant to its operations. IAS 1 (Amendment), ‘Presentation of financial statements’ (effective for annual periods beginning on or after 1 January 2010). The amendment provides clarification that the potential settlement of a liability by issue of equity is not relevant to its classification as current or non current. By amending the definition of current liability, the amendment permits a liability to be classified as non current (provided that the entity has an unconditional right to defer settlement by transfer of cash or other assets for at least 12 months after the accounting period) notwithstanding the fact that the entity could be required by the counterparty to settle in shares at any time. In applying the amendment there was no material impact on the Trust’s financial statements. IAS 7, Statement of Cash Flows (effective for annual periods beginning on or after 1 January 2010). Clarifies that only expenditure that results in a recognised asset can be classified as a cash flow from investing activities.

Summary of Significant Accounting Policies (continued)

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IFRS 7 (Amendment) Financial instruments – Disclosures (effective 1 January 2011). The amendment clarifies the disclosure requirement by emphasising the interaction between quantitative and qualitative disclosures and the nature and extent of risks associated with financial instruments. Amendments were made to qualitative and credit risk disclosures. The adoption of this amendment will result in changes in the presentation of credit risk disclosures. The Trust will apply the changes in IFRS 7 (Amendment) from 1 April 2011. It is not expected to have a material impact on the Trust’s financial statements. IFRS 9 - Financial Instruments part 1: Classification and measurement (effective for annual periods beginning on or after 1 January 2013). Financial assets are required to be classified into two measurement categories: those to be measured subsequently at fair value, and those to be measured subsequently at amortised cost. The decision is to be made at initial recognition. The classification depends on the entity’s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. An instrument is subsequently measured at amortised cost only if it is a debt instrument and both the objective of the entity’s business model is to hold the asset to collect the contractual cash flows, and the asset’s contractual cash flows represent only payments of principal and interest (that is, it has only ‘basic loan features’). All other debt instruments are to be measured at fair value through profit or loss. All equity instruments are to be measured subsequently at fair value. Equity instruments that are held for trading will be measured at fair value through profit or loss. For all other equity investments, an irrevocable election can be made at initial recognition, to recognise unrealised and realised fair value gains and losses through other comprehensive income rather than profit or loss. There is to be no recycling of fair value gains and losses to profit or loss. This election may be made on an instrument-by-instrument basis. Dividends are to be presented in profit or loss, as long as they represent a return on investment. Entities with financial liabilities designated as fair value through profit or loss recognise changes in the fair value due to changes in the liability’s credit risk directly in other comprehensive income (OCI). There is no subsequent recycling of the amounts in OCI to profit or loss, but accumulated gains or losses may be transferred within equity. While adoption of IFRS 9 is mandatory from 1 January 2013, earlier adoption is permitted for financial assets without adopting the requirements for financial liabilities. The Trust is currently examining the effect of this standard on its operations. Revised IAS 24 (Revised), ‘Related party disclosures’ (effective from January 1 2011). Earlier application, in whole or in part, is permitted. The revised standard clarifies and simplifies the definition of a related party and provides certain exemptions for government related entities. The Trust will apply the revised standard from 1 January 2011, but it is not expected to have a significant impact on its related party disclosures.

HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Summary of Significant Accounting Policies (continued)

(b) Revenue recognition Employersâ&#x20AC;&#x2122; contributions are recognised as income when received by the Trust from the Commissioner of Inland Revenue, as mandated by the HEART Act.

(e) Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

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.

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 remaining useful life. Annual depreciation rates are as follows:

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 statement of comprehensive income. (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.

Buildings Motor vehicles Computers Furniture, fixtures and equipment Utensils Leasehold improvements

2Â˝% 25% 331/3 % 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.

Grant funds received exclusively for the Trust are treated as income in the year they are received. (d) Current and deferred income taxes The tax expense for the period comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted at the statement of financial position date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It established provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognised if they arise from initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using the tax rates that have been enacted at the statement of financial position date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Gains and losses on disposal of property, plant and equipment are determined by comparing proceeds with carrying amount and are taken into account in determining surplus. Repairs and maintenance expenses are charged to the statement of comprehensive income 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. (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.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Summary of Significant Accounting Policies (continued) (g) Biological assets Biological assets which represent 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 plan The Trust operates a defined benefit plan. The plan is generally funded through payments to a trusteeadministered 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 recognised in the statement of financial position in respect of defined benefit pension plans is the difference between the present value of the defined benefit obligation at the year end date and the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates 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 pension liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions in excess of the greater of 10% of the value of plan assets or 10% of the defined benefit obligation are charged or credited to income over the employeesâ&#x20AC;&#x2122; expected average remaining working lives. Past-service costs are recognised immediately in income, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are amortised on a straight-line basis over the vesting period.

(ii) Other post-employment obligations The Trust also provides post-employment healthcare benefits to its retirees. The entitlement to these benefits is usually conditional 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 the same accounting methodology as used for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions in excess of the greater of 10% of the value of plan assets or 10% of the defined benefit obligation, are charged or credited to income over the expected average remaining working lives of the related employees. These obligations are valued annually by independent qualified actuaries.

Summary of Significant Accounting Policies (continued) (i) Impairment of non- financial assets Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assetâ&#x20AC;&#x2122;s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assetâ&#x20AC;&#x2122;s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cashgenerating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date. (j) Financial instruments The Trust allocates financial assets to the following IAS 39 categories: loans and receivables, held-to-maturity and available-for-sale. Management determines the classification of its financial instruments at initial recognition and re-evaluates this designation at every reporting date. (a) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those that the Trust: (i) intends to sell immediately or in the short term , which are classified as held for trading, and those that the Trust upon initial recognition designates as at fair value through profit or loss; (ii) upon initial recognition, designates as available-for-sale; or (iii) may not recover substantially other than because of credit deterioration. Loans and receivables are initially recognised at fair value - which is the cash consideration to originate or purchase the loan including any transaction costs - and measured subsequently at amortised cost using the effective interest rate method. Interest on loans is included in the statement of comprehensive income and is reported as interest income. In the case of an impairment, the impairment loss is reported as a deduction from the carrying value of the loan and recognised in the statement of comprehensive income as loan impairment provision. At the date of the statement of financial position, long term loans receivable and current receivables were classified as loans and receivables.

(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 year end date.

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Summary of Significant Accounting Policies (continued) (j) Financial Instruments (continued) (b) Held-to-maturity Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Trust’s management has the positive intention and ability to hold to maturity. Were the Trust required to sell other than an insignificant amount of held-to-maturity assets, the entire category would be compromised and reclassified as available-for-sale.

Summary of Significant Accounting Policies (continued) (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.

At the date of the statement of financial position held-to-maturity investments comprised mainly Government of Jamaica securities.

(n) Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, net of bank overdrafts.

(c) Available-for-sale financial assets Available-for-sale investments are non-derivative financial assets that are intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices or that are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss.

(o) Foreign currency translation (i) Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the Trust operates (“the functional currency”). The financial statements are presented in Jamaican dollars, which is the Trust’s functional and presentation currency.

Available-for-sale financial assets are initially recognised at fair value, which is the cash consideration including any transaction costs, and measured subsequently at fair value with gains and losses being recognised in the statement of comprehensive income, except for impairment losses and foreign exchange gains and losses, until the financial asset is derecognised.

(ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

If an available-for-sale financial asset is determined to be impaired, the cumulative gain or loss is recognised in the statement of comprehensive income. Interest is calculated using the effective interest method, and foreign currency gains and losses on monetary assets classified as available for sale are recognised in the statement of comprehensive income. At the date of the statement of financial position, the following items were classified as available-for-sale: receivables and cash and short-term investments.

(p) Provisions Provisions are recognised when the Trust has a present, legal or constructive obligation as a result of past events, if it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Trust expects a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain.

Financial liabilities The Trust’s financial liabilities are initially measured at fair value, and are subsequently measured at amortised cost using the effective interest method. At the date of the statement of financial position, the following items were classified as financial liabilities: bank overdraft, payables and amounts due to other agencies. (k) Inventories Inventories are valued at the lower of cost and net realisable value, cost being determined on a first-in, firstout basis. Net realisable value is the estimated selling price in the ordinary course of business less selling expenses. (l) Technical assistance The provision of technical assistance at no cost to the Trust is neither quantified nor included in these financial statements.

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Financial Risk Management The Trust’s activities expose it to a variety of financial risks: market risk (including currency risk and cash flow interest rate risk), credit risk and liquidity risk. The Trust’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Trust’s financial performance. The Trust’s risk management policies are designed to identify and analyse these risks, to set appropriate risk limits and controls, and to monitor the risks and adherence to limits by means of reliable and up-to-date information systems. The Trust regularly reviews its risk management policies and systems to reflect changes in markets, products and emerging best practice. In February 2010, the Trust participated in the Jamaica Debt Exchange (JDX) transaction under which the Trust exchanged its holdings of domestic debt instruments issued by the Government of Jamaica for new, longer-dated debt instruments available to the Trust under the election options contained in the agreement. The JDX transaction resulted in a reduction in yields and an increase in the tenor of locally issued Government of Jamaica securities and, therefore, had a significant impact on interest income. The Board of Directors is ultimately responsible for the establishment and oversight of the Trust’s risk management framework. The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk and credit risk and investment of excess liquidity. The Board has established committees for managing and monitoring risks, as follows: (i) Finance Committee The Finance Committee acts in an advisory capacity to the Board on the overall financial condition of the Trust. The Committee also examines and recommends policies that facilitate maximisation of revenue flows and monitor and review the annual budgets of the Trust. The Committee also delegates some functions to the Finance and Accounting Department which makes decisions on financial matters on a daily basis. (ii)

Audit Committee The Audit Committee oversees how management monitors compliance with the Trust’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Trust. The Audit Committee is assisted in its oversight role by the Internal Audit Department. This department undertakes both regular and ad hoc reviews of risk management controls and procedures, the result of which are reported to the Audit Committee.

Financial Risk Management (continued) The most important types of risk are credit risk, liquidity risk and market risk. Market risk includes currency risk and interest rate risk. (a) Credit risk The Trust takes on exposure to credit risk, which is the risk that its students, commercial customers (customers of the commercial enterprises that are managed by the training institutions) or counterparties will cause financial loss for the Trust by failing to discharge their contractual obligations. Credit exposures arise principally from the Trust’s receivables and investment activities. Credit review process The management of the various training institutions is responsible for regular reviews of the ability of students and commercial customers to meet repayment obligations. The monitoring of other counterparties is performed at the corporate office. (i) Receivables The Trust’s exposure to credit risk is influenced mainly by the individual characteristics of each student and commercial customer. The Trust has procedures in place to restrict further participation in training programmes until repayment obligations are met. Customer credit risk is monitored according to their credit characteristics such as whether it is an individual or company or if it is experiencing financial difficulties. Receivables relate mainly to the Trust’s students and commercial customers. The Trust establishes a provision for impairment that represents its estimate of incurred losses in respect of receivables. The Trust addresses impairment on an individual basis. The provision is mainly in relation to the Trust’s students. The Trust’s average credit period on the payment of tuition is 90 days for students and 30 days for commercial customers. The Trust has provided for most of its receivables over 90 days based on historical experience which dictates that amounts past due beyond 90 days are generally not recoverable.

(iii) Corporate Governance Committee The Corporate Governance Committee ensures that the Board of Directors is, and remains in compliance with the Public Bodies Management and Accountability Act 2001 (Act 30 of 2000 and amendment No. 12-2003); the HEART Act, and all other applicable and relevant laws and regulations. The Committee also reviews and recommends policies such as Corporate Governance Principles and policies that will guide the Board of Directors in the execution of their responsibilities, as well as a Code of Ethics and any other corporate governance issues deemed appropriate.

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Financial Risk Management (continued) 3.

Financial Risk Management (continued)

(a) Credit Risk (continued)

Credit review process (continued)

Exposure to credit risk for investments (ii) Investments The Trust limits its exposure to credit risk by investing mainly in liquid securities, with counterparties that have high credit quality and Government of Jamaica securities. Accordingly, management does not expect any counterparty to fail to meet its obligations. (iii) Cash and bank Cash and bank transactions are limited to high credit quality financial institutions.

Maximum exposure to credit risk The worst case scenario of credit risk exposure was as follows: 2011 2010

$’000

Loans receivable

1,550

3,361

350,961

356,933

Trade receivables (net of provision for impairments)

75,544

70,928

Cash and short term investments

1,863,421

1,455,325

2,291,476

1,886,547

Exposure to credit risk for trade receivables Credit exposure for the Trust mainly relates to students and commercial customers. The total trade receivables are receivable from students and commercial customers in Jamaica.

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$’000

451,000

701,000

Financial institutions

1,625,563

938,903

2,076,563

1,639,903

7,861

20,353

2,084,424

1,660,256

Government of Jamaica

Investments

The following table summarises the Trust’s credit exposure for investments at their carrying amounts, as categorised by issuer: 2011 2010

Interest receivable

Aging analysis of trade receivables that are past due but not impaired Trade receivables that are less than three months past due are not considered impaired. The aging analysis of these trade receivables is as follows: 2011 2010 $’000 $’000 1 to 30 days

9,096

11,626

31 to 60 days

6,838

5,585

61 to 90 days

1,832

5,067

17,766

22,278

HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Financial Risk Management (continued) (a) Credit risk (continued) Aging analysis of trade receivables that are past due and impaired: As of 31 March 2011, trade receivables of $46,121,000 (2010 - $39,776,000) were impaired. The amount of the provision was $43,771,000 (2010 - $36,169,000). The individually impaired receivables mainly relate to students who are in difficult economic situations. It was assessed that a portion of these receivables are expected to be recovered. Over 3 months

2011 $’000 46,121

2010 $’000 39,776

At 1 April Provision for receivables impairment Receivables written off during the year as uncollectible At 31 March

(b) Liquidity risk Liquidity risk is the risk that the Trust may be unable to meet its payment obligations associated with its financial liabilities when they fall due. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Liquidity risk management process The Trust’s liquidity management process, as carried out within the Trust and monitored by the Finance Committee through the Finance and Accounting Department includes: (i) Monitoring future cash flows and liquidity on a daily basis. This incorporates an assessment of expected cash flows. (ii) Maintaining a portfolio of highly marketable and diverse assets that can easily be liquidated as protection against any unforeseen interruption to cash flow;

Movement analysis of the provision for impairment of trade receivables

Financial Risk Management (continued)

(iii) Optimising cash returns on investments. 2011 $’000

2010 $’000

36,169

45,456

7,602

- 43,771

(9,287 ) 36,169

Undiscounted cash flows of financial instruments The tables below summarise the maturity profile of the Trust’s financial liabilities at 31 March based on contractual undiscounted payments.

As at 31 March 2011:

The creation and release of provision for impaired receivables have been included in other operating expenses in the statement of comprehensive income. Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash. The Trust has also established a provision for other receivables. However, these amounts are not considered significant. There are no financial assets other than those listed above that were individually impaired.

Payables Due to other agencies Total financial liabilities (contractual maturity dates) As at 31 March 2010:

Within 1 Month $’000

2 to 3 Months $’000

4 to 12 Months $’000

2 to 5 Years $’000

Over 5 Years $’000

Total $’000

90,258

1,079,011

3,476

1,172,745

4,118

94,376

1,079,011

3,476

1,176,863

Provisions

11,500

Payables

89,010

772,549

1,863

863,422

Due to other agencies

11,328

111,838

772,549

1,863

886,250

Total financial liabilities (contractual maturity dates)

As explained in Note 20, the bank overdraft represents unpresented cheques and will not result in an obligation, accordingly it has been excluded from the table above.

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Financial Risk Management (continued) (c) Market risk The Trust takes on exposure to market risks, which is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks arise from changes in foreign currency exchange rates and interest rates. Market risk is monitored by the Finance and Accounting Department which monitors the price movement of financial assets on the local markets. Market risk exposures are measured using sensitivity analysis. There has been no change to the Trust’s exposure to market risks or the manner in which it manages and measures the risk. (i) Currency risk Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Trust is exposed to foreign exchange risk with respect to the US dollar. Foreign exchange risk arises from investments and cash balances. There was no effect on reserves. The Trust manages this risk by holding foreign currency balances in a currency that is relatively strong compared to the Jamaican dollar. The statement of financial position at 31 March 2011 includes foreign assets of approximately US$3,233,000 (2010 – US$3,119,000). This is comprised as follows: US$’000 Cash

2011 US$’000

2010

603

1,258

Short term investments

2,630

1,861

3,233

3,119

Financial Risk Management (continued) (c) Market risk (continued) (i) Currency risk (continued) Foreign currency sensitivity The following table indicates the currency to which the Trust had significant exposure on its monetary assets and liabilities and its forecast cash flows. The change in currency rate below represents management’s assessment of the possible change in foreign exchange rates. The sensitivity analysis represents outstanding foreign currency denominated monetary items and adjusts their translation at the year end for a 1% revaluation and 0.5% devaluation in foreign currency rates. The sensitivity of the surplus was as a result of foreign exchange gains and losses on translation of US dollar-denominated cash and short term investments. The correlation of variables will have a significant effect in determining the ultimate impact on market risk, but to demonstrate the impact due to changes in variable, variables had to be on an individual basis. It should be noted that movements in these variables are non-linear.

% Change in Currency Rate 2011 Currency:

Effect on % Change Net Surplus in Currency Rate 2011 2010 $’000

Effect on Net Deficit 2010 $’000

USD – Revaluation

(22)

(21)

USD – Devaluation

0.5

104

(ii) Interest rate risk Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Floating rate instruments expose the Trust to cash flow interest rate risk, whereas fixed interest rate instruments expose the Trust to fair value interest rate risk. The Trust’s main interest rate risk arises from investments. Government of Jamaica investments, which mainly have maturities greater than one year, are fixed rate instruments and are classified as held-tomaturity. Interest rate sensitivity There is no effect on the Trust’s statement of comprehensive income as the Trust does not have any floating rate non-trading financial assets and financial liabilities. (d) Capital management The Trust does not have any stated share capital. The Trust however has reserves consisting of accumulated surplus. The Trust is not subject to any externally imposed capital requirements.

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Fair Value of Financial Instruments Fair value is the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. 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:

2011 Carrying Amount Fair Value $’000 $’000 Loans receivable (including current portion) Investments (Note 15)

2010 Carrying Amount $’000

Fair Value $’000

3,293

3,343

5,131

4,410

348,893

341,240

356,933

333,831

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.

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. Critical accounting estimates and assumptions 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 assumptions 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 post-retirement 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 $390,176,000 higher or $319,235,000 lower. Were the discount rate to differ by 1%, the carrying amount of employee benefits obligation would be $145,563,000 higher or $218,439,000 lower. Were the salary growth rate to differ by 1%, carrying amount of employee benefits obligation would be $199,403,000 higher or $157,305,000 lower. Critical judgement in applying the Trust’s accounting policies In the process of applying the Trust’s accounting policies, management has made no significant judgement in the amounts recognised in the financial statement.

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

Personnel/Administration Costs

Finance Income Interest Foreign exchange gain

2011 $’000

2010 $’000

155,520

239,300

330

5,212

155,850

244,512

Wages and salaries

2011 $’000

2010 $’000

2,437,003

2,193,230

180,691

175,507

(12,443 )

(765,300)

67,661

33,213

447,401

368,887

3,120,313

2,005,537

Payroll taxes – employer’s portion Pension (Note 13) Other post-employment benefits (Note 13)

Other Income

Miscellaneous Rental

Expenses by Nature

2011 $’000

2010 $’000

15,353

260,357

5,601

6,239

20,954

266,596

2010 $’000

Accommodation

23,443

17,243

Advertising and promotion

43,385

27,544

Auditors’ remuneration Current year Prior year over accrual Bad debt Computer supplies and services Consultants’ fees

2,733

3,086

(136 )

7,602

51,034

37,723

1,811

579

189,817

194,720

Facilities costs

1,127,178

979,828

Directors’ fees

6,486

8,295

Other operating expenses

3,595

2,171

3,120,313

2,005,537

Depreciation and amortisation (Notes 11 and 16)

Personnel/administration costs (Note 9) Seminars and conferences Training costs Travelling

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The number of persons employed by the Trust at the end of the year was as follows:

2011 No.

2010 No.

Full - time

1,164

1,152

Part - time 2011 $’000

Other

17,609

14,562

1,636,691

1,472,236

27,937

27,749

6,259,497

4,791,273

904

712

2,068

1,864

10. 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. As a result of this amendment, the Trust is now liable to pay income tax on its surplus.

HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

10. Taxation (continued) (a) Taxation is based on the surplus for the year, adjusted for taxation purposes and comprises income tax at 331/3 % : Current income tax

2011 $’000

2010 $’000

84,339

311,238

Prior year over accrual

Deferred tax (Note 21)

80,137

289,600

164,476

527,181

(73,657 )

(b) The tax charge on the Trust’s surplus differs from the theoretical amount that would arise using the s tatutory tax rate as follows:

2011 $’000

2010 $’000

Surplus before tax

492,662

1,797,721

Tax calculated at a rate of 331/3 %

164,221

599,240

Adjusted for the effects of: Prior year over accrual Expenses not allowed Net effect of other charges and allowances Income tax expense

(73,657 )

262

204

(7 )

1,394

164,476

527,181

11. Property, Plant & Equipment At Cost - 1 April 2009

Buildings Furniture, including Motor Fixtures & Leasehold Land Academies Vehicles Computers Equipment Improvements $’000 $’000 $’000 $’000 $’000 $’000

Total $’000

45,800

1,630,834

95,734

436,462

995,445

7,749

3,212,024

Additions

330

34,774

101,460

136,564

Transfers from construction in progress

11,998

Disposals

(5,566 )

(98 )

(608 )

(6,272 )

Adjustments

(473 )

(1,416 )

(543 )

(2,432 )

469,722 1,095,754

31 March 2010

45,800

1,642,359

90,498

7,749

3,351,882

Additions

1,466

87,001

113,944

202,411

Transfers from construction in progress

760

Disposals

(3,532 )

(1,436 )

(1,955 )

(6,923 )

Fully depreciated assets written off

(110,315 )

Adjustments 31 March 2011 Depreciation -

(4,976 )

(1,181 )

45,800

1,639,609

85,785

5,572

555,287 1,103,000

7,749

3,473,230

(585 )

1 April 2009

360,674

75,528

345,258

451,994

7,749

1,241,203

Charge for the year

40,877

9,442

52,118

80,045

182,482

Relieved on disposals

(5,409 )

(13 )

(153 )

(5,575 )

Adjustments

(47 )

(1,265 )

31 March 2010

401,504

79,561

396,098

531,886

7,749

1,416,798

Charge for the year

42,132

5,249

51,098

79,683

178,162

Relieved on disposals

(3,532 )

(1,436 )

(1,955 )

(6,923 )

Fully depreciated assets written off

(110,315 )

Adjustments

(1,181 )

133

(1,048 )

31 March 2011

443,636

80,097

445,760

499,432

7,749

1,476,674

Net Book Value -

(1,312 )

31 March 2011

45,800

1,195,973

5,688

109,527

603,568

1,960,556

31 March 2010

45,800

1,240,855

10,937

73,624

563,868

1,935,084

An amount of $760,000 was transferred from construction in progress (Note 12).

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

12. Construction in Progress

13. Post-employment Benefits

This represents costs incurred to year end for construction in progress at the following locations:

2011 $’000

2010 $’000

Boy’s Town Vocational Training Centre

338

Buff Bay Vocational Training Centre

257

Culloden Vocational Training Centre Ebony Park HEART Academy James Patterson National Tools and Engineering Institute Port Maria Vocational Training Centre

630

2,411

2,338

234

Runaway Bay Academy

5,372

3,411

9,358

7,324

onstruction in progress totalling $760,000 was completed during the year and transferred to property, plant and C equipment (Note 11).

(a) Pension plan The Trust has established a retirement benefit plan covering all permanent employees. The assets of the plan are held independently of the Trust’s assets in separate trustee administered funds. The plan 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 plan is administered by the Trustees and the funds are invested and managed by Sagicor Life Jamaica Limited. The latest actuarial valuation was done as at 31 March 2011. The amounts recognised in the statement of financial position are determined as follows: 2011 2010 $’000 $’000 Present value of funded obligations

2,627,767

2,128,687

Fair value of plan assets

(4,304,016 )

(3,489,177 )

(1,676,249 )

(1,360,490 )

122,389

(35,721 )

(1,553,860 )

(1,396,211 )

Unrecognised actuarial gains/(losses) Asset in the statement of financial position

The amounts recognised in the statement of comprehensive income are as follows: 2011 2010 $’000 $’000 Current service cost Interest cost Expected return on plan assets Net actuarial gain recognised during the year Change in asset limitation Total, included in personnel/administration costs (Note 9)

84,176

6,532

258,087

194,544

(354,706 )

(271,913 )

(3,518 )

(12,443 )

(74,355 )

(690,945 )

(12,443 )

(765,300 )

The actual return on plan assets was $699,083,000 (2010 - $676,895,000).

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

13. Post-employment Benefits (continued)

(a) Pension plan (continued) Movements in the amounts recognised in the statement of financial position: Assets at beginning of year

(a) Pension plan (continued) 2011 2010 $’000 $’000 (1,396,211 )

(450,427 )

(12,443 )

(74,355 )

(145,206 )

(180,484 )

(1,553,860 )

(705,266 )

(690,945 )

(1,553,860 )

(1,396,211 )

Total income, as above Contributions paid Change in income not eligible for recognition due to limit Asset at end of year

The expected return on plan assets was determined by considering the expected returns available on the assets underlying the current investment policy. Expected yields on fixed interest investments are based on gross redemption yields as at the balance sheet date. Expected returns on equity and property investments reflect long-term real rates of return experienced in the respective markets. The distribution of plan assets was as follows: Quoted equities Government of Jamaica securities Repurchase agreements US$ Indexed bonds Other

Movement on the fair value of the plan assets during the year was as follows:

2011 % 5 83 4 - 8 100

2011 $’000

2010 $’000

3,489,177

2,625,984

Expected return on plan assets

354,706

271,913

Actuarial gain on plan assets

344,377

404,982

Effect on the aggregate of the current service cost and interest cost

Contributions

237,428

272,941

Effect on the defined benefit obligation

At beginning of year

Benefits paid At end of year

(121,672 ) 4,304,016

3,489,177

2010 $’000

2,128,687

1,160,232

Current service cost

176,397

98,988

Interest cost

258,087

194,544

Actuarial loss on obligations

186,268

761,566

Benefits paid At end of year

(121,672 ) 2,627,767

Increase $’000

Decrease $’000

81,574

50,593

414,874

273,396

The five-year trend for the fair value of plan assets, the defined benefit obligation, the surplus in the plan, and experience adjustments for plan assets and liabilities is as follows:

2011 $’000

At beginning of year

The effects of a 1% movement in the assumed medical cost trend rate were as follows:

(86,643 )

The movement in the present value of the defined benefit obligation during the year was as follows:

2010 % 5 60 19 9 7 100

(86,643 ) 2,128,687

Fair value of plan assets Defined benefit obligation Surplus Experience adjustments – Fair value of plan assets Defined benefit obligation

2011 $’000

2010 $’000

2009 $’000

2008 $’000

2007 $’000

4,304,016

3,489,177

2,625,984

2,481,293

2,094,079

(2,128,687 ) (1,160,232 )

(1,058,860 )

(795,268 )

1,465,752

1,422,433

1,298,811

(2,627,767 ) 1,676,249

1,360,490

344,377

404,982

(213,118 )

22,702

50,247

(122,164 )

(34,504 )

11,099

130,686

38,292

The expected contributions to the plan for the year ending 31 March 2012 amount to $147,200,000.

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HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

13. Post-employment Benefits (continued)

14. Loans Receivable

(a) Pension scheme (continued) The principal actuarial assumptions used were as follows:

2011 2010 % %

Discount rate

10.5

11.5

Expected return on plan assets

10.0

8.0

Future salary increases Future pension increase

5.0

6.0

Long term rate of inflation

6.5

7.5

18.3

17.6

Expected average remaining working lives of employees (years)

Motor vehicle, education and computer loans to employees Less: Current portion (Note 19)

The Trust operates a post-employment benefit plan principally in Jamaica. The benefits covered under the plan include health care. Funds are not built up to cover the obligations under this retirement benefit plan. The method of accounting and the frequency of valuations are similar to those used for defined benefit pension plans.

Liability at end of year

Held-to-maturity securities – at amortised cost Joint venture deposit

2011 $’000

2010 $’000

442,244

334,222

(150,656 )

(105,074 )

291,588

229,148

2011 $’000

2010 $’000

Current service cost

22,950

9,089

Interest cost

40,774

25,667

3,937

(1,543)

67,661

33,213

Net actuarial loss/(gain) recognised in year Total, included in staff costs (Note 9)

www.heart-nta.org

1,550

3,361

2011 2010 $’000 $’000 16,889

14,821

Government of Jamaica

331,000

347,889

345,821

Interest receivable

The amounts recognised in the statement of comprehensive income are as follows:

5,131 (1,770 )

(b) Education and emergency loans are unsecured, bear interest at 8% per annum and are repayable over 1 – 2 years.

The amounts recognised in the statement of financial position were determined as follows:

Unrecognised actuarial loss

3,293 (1,743 )

(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.

In addition to the assumptions used for the pension plans, the main actuarial assumption is a long term increase in health costs of 10.5% per year (2010 – 10.5% per year).

Present value of unfunded obligations

2010 $’000

15. Investments

(b) Other post-employment obligations

2011 $’000

3,072

11,112

350,961

356,933

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)

HT and the Trust will each finance 45% of the cost of the units (totalling 90% of the cost of the units); N 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.

HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

16. Intangible Assets – Computer Software 2011 2010 $’000 $’000

19. Receivables

Cost - At 1 April Additions At 31 March Amortisation -

79,878

77,201

8,811

2,677

88,689

79,878

Less: Provision for impairment

At 1 April

64,092

51,854

Amortisation for the year

11,655

12,238

At 31 March

75,747

64,092

12,942

15,786

Net Book Value

Trade receivables

Beginning of the year

2011 $’000

2010 $’000

23,418

24,356

Increases due to purchases

5,106

5,667

Decrease due to harvesting

(47,201 )

(18,414 )

41,847

10,870

3,237

939

26,407

23,418

Gain arising due to physical change Gain arising due to price changes End of the year 18. Inventories

75,544

70,928

Prepayments

22,988

17,870

Advance on purchase of property, plant and equipment

25,752

13,880

Current portion of long term receivables (Note 14)

1,743

1,770

Staff loans

2,766

3,632

Security deposits

5,453

General Consumption Tax recoverable

86,254

99,323

Other

23,462

54,009

168,418

195,937

20. Cash and Short Term Investments Cash in hand and bank Cash on deposit Government of Jamaica securities

(20,975 )

222,987

245,890

2011 $’000

2010 $’000

115,137

137,181

3,019

3,662

451,000

370,000

Securities purchased under agreements to resell

1,289,476

935,241

1,858,632

1,446,084

Interest receivable

4,789

9,241

1,863,421

1,455,325

2011 $’000

2010 $’000

4,885

3,316

Maintenance, training and office supplies

81,868

75,103

2011

2010

86,753

78,419

$’000

115,137

137,181

3,019

3,662

1,289,476

935,241

Hotel supplies – Runaway Bay HEART Hotel and Training Institute

Cash and cash equivalents include the following for the purpose of the cash flow statement –

Cash in hand and bank Cash on deposit Securities purchased under agreements to resell Bank overdraft Interest receivable

107,097 (36,169 )

Less: Provision for impairment

17. Biological Assets - Livestock

119,315

2010 $’000

(43,771 )

2011 $’000

www.heart-nta.org

(79,977 ) 1,327,655

(85,518 ) 990,566

3,072

5,928

1,330,727

996,494

HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

20. Cash and Short Term Investments (continued)

21. Deferred Income Taxes (continued) The amounts shown in the statement of financial position include the following – Deferred tax assets to be recovered after more than 12 months

Cash is comprised mainly of amounts held in a current account which attracts interest rates of 0.45% to 1.00% (2010 – 1.2% to 9.75%) per annum. The average effective rate on short term investments was 7.49% (2010 – 15.27%) per annum and these deposits have an average maturity of 40 days (2010 – 38 days). The accounting records of the Trust reflect a bank overdraft which results from cheques issued but not yet presented to the bank. 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 at year end.

Deferred tax liabilities to be settled within 12 months

Deferred income taxes are calculated on all temporary differences under the liability method using a tax rate of 33 /3% for the Trust. Liability recognised on the statement of financial statements is as follows: 1

Liability at beginning of year Charged for the year (Note 10) Liability at end of year

2011 $’000

2010 $’000

413,097

123,497

80,137

289,600

493,234

413,097

Deferred income tax assets and liabilities are due to the following items:

2011 $’000

Deferred income tax assets -

97,196

76,383

Provisions

27,655

66,251

124,851

142,634

Deferred income tax liabilities - Biological assets

313

96,433

83,230

Interest receivable

2,620

6,784

Pension plan asset

517,953 618,08

465,404 555,731

493,234

413,097

Net deferred tax liability

97,196

76,383

3,699

7,157

2011 $’000

2010 $’000

Employee benefits

31,736

305,541

Accelerated tax depreciation

13,203

3,916

766

109

Provisions

38,596

(12,250)

Interest receivable

(4,164)

(7,716)

80,137

289,600

2011 $’000

2010 $’000

11,500

2011 $’000

2010 $’000

1,063,530

773,289

Due to the Inland Revenue

137,352

128,427

Trade

116,561

85,777

5,152

4,356

1,322,595

991,849

Gain on valuation of biological assets

22. Provision Lawsuit (Note 27) 23. Payables Accruals

1,079

Property, plant and equipment

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Employee benefit obligation benefits

2010 $’000

The deferred tax charged in the statement of comprehensive income comprises the following temporary differences:

21. Deferred Income Taxes

2011 $’000

Other

HEART Trust/NTA Annual Report 2010

Human Employment and Resource Training Trust

Notes to the Financial Statements 31 March 2011

(expressed in Jamaican dollars unless otherwise stated)

24. Due to other Agencies

26. Commitments

2011 $’000

2010 $’000

Jamaica Defence Force

116

HIV Alliance

221

474

ICT4D

206

CTO

520

915

WorldSkills

926

3,070

The future aggregate minimum lease payments are non-cancellable operating leases is as follows:

1,518

4,325

363

2,000

EU Banana Sector UNICEF

South Trelawny Eduskills Centre West Central St. James JRRAP

247 4,118

- 11,328

(a) Approval for capital expenditure commitments to be incurred over the next year for which no provision has been made in these financial statements is as follows: Authorised and not contracted for Authorised and contracted for

2011 $’000

2010 $’000

18,000

6,567

(b) Lease commitments

2011 $’000

2010 $’000

No later than 1 year

15,468

20,096

Later than 1 year and no later than 5 years

19,479

14,718

34,947

34,814

25. Related Party Transactions (a) Transactions with related parties Directors’ fees

(b) Key management compensation –

2011 $’000

2010 $’000

6,486

8,295

2010 $’000

44,463

45,544

659

3,474

Performance incentive

3,041

4,167

Payroll taxes – employer portion

3,193

3,802

Pension benefits

3,942

2,606

Other

10,130

11,086

65,428

70,679

Gratuity

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The Trust is subject to various claims, disputes and legal proceedings. Provision is made for such matters when, in the opinion of management and its professional advisors, it is probable that a payment will be made by the Trust, and the amount can be reasonably estimated. In respect of the claims asserted against the Trust, which have not been provided for, management is of the opinion that such claims are either without merit or can be successfully defended.

2011 $’000

Salaries and other short-term employee benefits

27. Contingent Liabilities

HEART Trust/NTA Annual Report 2010

Our People

Where we are

Corporate Offices

Executive Team Executive Director Senior Director, Human Resource Planning Development Chief Information Officer (Actg.) Senior Director, Planning and Projects Development (Actg.) Senior Director, HEART Trust Fund National Programmes Director Senior Director, National Council on Technical and Vocational Education and Training (NCTVET) (Actg.) Chief Technical Director

- Carolyn Hayle, Ph.D - Colin Barnett - Luz Johnson - Kenneth Morrison - Kevin Mullings - Dermon Spence

- Ludlow Thompson - Wayne Wesley, Ph.D

Directors Internal Audit Regional Programmes Services Enterprise Based Training Institution Based Training Strategic Workforce Development Buildings & Properties Community Based Training (Actg.) Communications Research & Evaluation Human Resource Management Organisational Research & Development Learning Management Services Administration Compliance & Remittance Corporate Secretary/Legal Counsel Finance & Accounting Vocational Training Development Institute

- - - - - - - - - -

Malcolm Cameron Cynthis Dewdney Winston Fletcher Karen Gayle Robert Green Michael Hamilton Donovan Jones Tiffany Johnson Kerron Lindo Sonia Lynch

- - - - - -

Marcia McKenzie Linnette McLean Joan Nicholas Cora Ricketts Debbie Ann Robinson Nadine Roper Daley

- Marcia Rowe Amonde, Ph.D

Caribbean Institute of Technology - Carlene Smith Operational Planning & Performance Monitoring Projects & Partnerships - Elizabeth Terry Quality Assurance - Jennifer Walker

Regional Managers Northern South Western North Western

- George Coleman - Charmaine Dixon - Merton Jones

South Eastern (Actg.)

- Dottline Lawson Hunter

Managers Compliance Management Information Systems Human Resource Management Information System Human Resource Policies and Programmes

www.heart-nta.org

- Yvette Bachelor - Verlia Bogle - Gail Durrant

Information/Promotion – NCTVET - Natalie Ferreira Reid Office Services (Actg.) - Sharon Graham Administration – VTDI - Arden Grant Educational Technology Management - Henry Gray Human Resource - Sonia Ingleton Senior Programmes Manager (Actg.) - Elain Holloway Regional Programme Services - Nursita Johnson Secretariat and Promotions - Sherrie Johnson Media Services - Judith Lewis Operations Manager - William Malabver Audit - Margaret Maragh Learning Resources, Design & Development - Monica Porter Lewis Safety & Security - Suzanne Scarlett Technical Services – ITC - Kenrick Steele Systems Development - Leecep Sterling Entrepreneurial Skills Development - Cheryll Stewart Learning for Earning Activity Programme (Actg.) - Jennifer Suberan Career Development Services - Erica Williams Purchasing (Actg.) - Barbara Vaughan

HEART Trust / NTA Head Office

Institutional Based Training Department

6B Oxford Road, Kingston 5

Telephone: (876) 929-3410-8, 960-7635-6

Fax: (876) 929-2478

Regional Programmes Services Department

National Council on Technical Vocational

7 Ripon Road, Kingston 5

Education and Training

Telephone: (876) 968-7488 – 9

Gordon Town Road, Kingston 7

Fax: (876) 928-1301

Telephone: (876) 977-1700–5 Fax: 977-1707

Enterprise Based Training Department 203 Windward Road, Kingston 2 Telephone: (876) 928-1391, 928-1301-2 Fax: (876) 928-1301

Institution Managers Boys Town VTC - Junction VTC (Actg.) - Buff Bay VTC - JAGAS - Cornwall Automotive Training Institute (CATI) - Career Advancement Programme - Career Advancement Programme - Above Rocks VTC - Career Advancement Programme - Rockfort VTC - Career Advancement Programme - NTEI - Old Habour VTC - Seaford Town VTC - Granville VTC - Culloden VTC (Actg.) - Petersfield VTC - Newport VTC (Actg.) - Falmouth VTC - Lluidas Vale VTC - Runaway Bay HEART Training Institute (Actg.) - Beechamville VTC - Black River VTC - Runaway Bay HEART Hotel & Training Institute - Port Maria VTC (Actg.) - Kenilworth Academy (Actg.) - Garmex Academy - Stony Hill Academy - Portmore (Actg.) - School of Cosmetology -

Yvonne Beckford Hewitt Dwayne Bent Erica Brimm Odette Brown Vent Brown Beverly Clarke Novelette Denton Prince Kerry-Ann Duhaney Palmer Janet Dyer Joan Findley Denworth Finnikin Milton Foster Philadolph Griffiths Colin Hitchman Olga James Keisha Jones Ivolyn Kirlew Dillon Taayoo Murray Shorna Myrie Marcus Nash Angella Powell Dewayne Pryce Delmarie Rowe Lewis James Samuels Althea Smikle Martin Paulette Taylor Andrea Toussaint Muffat Townsend Andrew Walters Jodine Williams

Regional Offices South Western Regional

South Eastern Regional

Savanna-la-mar

Office

6 Rose Street, Williams Plaza

Shop 1& 2, Lot 18 Caledonia Mall

7 Ripon Road, Kingston 5

Westmoreland

Mandeville, Manchester

Telephone: (876) 968-4419, 968-4441

Telephone: (876) 955-2928, 3918-0886

Telephone: (876) 962-0543, 962-3393

Fax: (876) 968-4443

Fax: (876) 962-3888

Regional Sub Offices

Morant Bay 14A Queens Street, St. Thomas

Northern Regional Office

Spanish Town

45 Main Street, St. Ann

Shop 1, 32 Brunswick Street

Telephone: (876) 972–0226, 972-1232

Spanish Town, St. Catherine

May Pen

Fax: (876) 972-1382

Telephone: (876) 943-9817

22A Manchester Avenue

Fax: (876) 907-4337

May Pen, Clarendon

North Western Regional

Telephone: (876) 703-6454, 982-1215

Telephone: (876) 986-6172, 902-8601

Office

Santa Cruz

11 Dome Street, St. James

Shops 7 -10, Cruz Business Centre

Telephone: (876) 952-4967, 979-2974

Institution Drive,

Fax: (876) 952-0321

Santa Cruz, St. Elizabeth

Fax: (876) 902-5523

Telephone: (876) 966-9710

- Christine Edwards

HEART Trust/NTA Annual Report 2010

Notes

www.heart-nta.org

HNTA11-007 - Annual Report 2010_CVR.indd 1

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