CHIETA AGM 26 OCTOBER 2016 OVERVIEW OF 2015/16 ANNUAL REPORT. Presentation 1: Ayesha Itzkin, CHIETA Acting CEO CHIETA AGM 26 OCTOBER 2016

OUTLINE OF PRESENTATION CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability OUTLINE OF PRESENTATION Presentation 1 - Overview of 2015/16 Annual Report Key organisational achievements 2015/16 2015/16 Annual Report – performance and financial information CFO’s Presentation of CHIETA Audited Financial Statements 2015/16 and current year progress report Presentation 2 - Overview of 2017/18 Annual Budget Strategic Plan 2015/16 to 2019/20 and overview of 2017/18 Annual Budget

CHIETA ORGANISATIONAL ACHIEVEMENTS CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA ORGANISATIONAL ACHIEVEMENTS CHIETA Governing Board is highly effective and has worked diligently to ensure their oversight role was discharged within an accountably Safeguarded sound corporate governance and oversight of the CHIETA mandate, which is a priority in public entities Attained great success also through excellence in terms of performance and delivery to stakeholders be adhering to its delivery targets as contracted with the Minister of Higher Education & Training in CHIETA’s Strategic Plan Through its well functioning stakeholder driven research and skills planning framework, CHIETA warranted strong integration between the Sector Skills Plan, the funding allocation and meeting its organisational targets has Effective CHIETA Chambers and stakeholder structures fed valuable information on the skills needs of the chemical industry into CHIETA’s skills planning processes.

ORGANISATIONAL ACHIEVEMENTS CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ORGANISATIONAL ACHIEVEMENTS Highly credible electronic skills planning platform from which verifiable company information is sourced and analyzed in order to plan for skills. Hugely effective grant funding processes and monitoring of the delivery by companies to ensure success, compliance and success. Excellent performance against 2015/16 organisational performance targets In 2015/16, of the ten CHIETA strategic programs all ten baseline targets were met or exceeded and this is 100% of its 58 pre-determined organizational targets. Forty six out of 58 pre-determined organisational targets were exceeded (79%) In so doing, CHIETA supported the DHET Minister’s performance contract with the President of South Africa and we attained the targets set in our own.

ORGANISATIONAL ACHIEVEMENTS CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ORGANISATIONAL ACHIEVEMENTS Targets were exceeded on: Employed and unemployed artisans entered in training and certificated Technical and Vocational Education and Training (TVET) Partnerships, career guidance and support to co-ops and small businesses TVET workplace experience/placements entered and completed Employed and unemployed learnerships, skills programs, bursaries and internships Strong Organizational Risk Management Policy and Framework implemented on strategic and operational levels to mitigate external and internal risks and to ensure CHIETA meets strategic objectives Sustained and increased levy income Governing Board approved R58.9 million for bursaries for both employed learners Highly successful and functional ICT platform supporting CHIETA business processes for stakeholder support and delivery Clean ICT Governance Audit achieved from the AG (SA) Excellent finance management.

Levy income exceeded and so this is not CHIETA…. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability Levy income exceeded and so this is not CHIETA….

ORGANISATIONAL ACHIEVEMENTS CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ORGANISATIONAL ACHIEVEMENTS In 2015/16 CHIETA Re-organized and optimized its business processes and designed and implemented even further enhanced delivery systems and controls for its identified risks Continued to build strong relationships with the chemical industry, public education and learning institutions and organized labour within our sector Focused on mega or multi party 3-way partnerships - Industry/Public Education Institutions/CHIETA partnerships for high impact delivery and innovation Continuous efforts to ensure every workplace in the chemical sector becomes a training space providing experiential learning and employment experience Put into place the building blocks for impact assessment.

CHIETA Audited Performance Information 2015/16 CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA Audited Performance Information 2015/16 Performance Indicator (Learnerships, Skills Programmes, bursaries and internships) Target Actual Percentage variance Employed learners entered 5360 6247 116% Employed certificated 2655 3586 135% Unemployed entered 4270 8450 198 % Unemployed certificated 2135 3859 181%

CHIETA Audited Performance Information 2015/16 CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA Audited Performance Information 2015/16 Performance Indicator Target Actual Percentage variance Artisans entered 1720 1864 108% Artisans certified 444 792 178% TVET College Partnerships 18 20 111% TVET Workplace experience entered 700 937 134%

CHIETA Audited Performance Information 2015/16 CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA Audited Performance Information 2015/16 Performance Indicator Target Actual Percentage variance Support to Co-operatives, NGOs, worker initiated training and small businesses 152 210 138% Support to large, medium and small companies 689 791 115%

Audited Financial Results for 2015/16 CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability Audited Financial Results for 2015/16 Unqualified audit opinion with clean audit report from AGSA SDL Income increased by 4% in comparison with prior year Employer grants and project expenses of R442.6 million, representing 115% of grant levy income of R385.3 million Mandatory Grant expense of R98.7 million represented 87% of MG levy income received (R113 million received, the balance was swept into the discretionary grant pot) 89% of Discretionary Grants were utilised on PIVOTAL programs 98.3% of funds available in the Discretionary reserve were committed as at 31 March 2016

CHIETA 5-YEAR ORGANISATIONAL PERFORMANCE INJ NSDS III CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA 5-YEAR ORGANISATIONAL PERFORMANCE INJ NSDS III CHIETA performance footprint, 1 April 2011 to 31 March 2016 A total of 53 944 learners were supported with occupationally directed training 22 800 employed learners and 31 144 unemployed learners were in training 31 106 learners were certificated on learnerships and skills programs internships and bursaries CHIETA certificated 2844 artisans 378 small businesses were received funding support 397 co-operatives and NGOs were supported Number of learners supported in NSDS III has grown exponentially due to lessons learned in NSDS I and II, after ten years of building credible relationships with stakeholders in that period, and winning the trust of Industry inter alia due to listening carefully to their skills needs and including these needs in the skills planning and funding processes, and timely disbursements of funds, and providing real skills planning support to industry The unit level of funding per learner in many programmes was often below the national recommended SETA funding levels due to successful Industry partnerships and co-funding models implemented together with CHIETA member companies.

Presentation 2: The Strategic Plan 2015/16 to 2019/20, and Annual Performance Plan 2017/18 CHIETA AGM 26 October 2016

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

OUTLINE OF THE PRESENTATION 2 CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability OUTLINE OF THE PRESENTATION 2 Key Characteristics of the CHIETA Strategic Plan 2015/16 to 2019/20 Key Characteristics of the CHIETA Annual Performance Plan (APP) 2017/18 CHIETA 2017/18 Budget

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CONTEXT CHIETA Governing Board mandated to the Governance and Strategy Committee, the submission of the CHIETA Strategic Plan 2015/16 – 2019/20 and Annual Performance Plan (APP) 2017/18 to DHET Two Drafts were submitted to DHET on: 30 August 2016, 30 September 2016 ( PFMA compliance date), and Third draft due on 15 November 2016

HOW WAS CHIETA’s STRATEGIC PLAN COMPILED? CHIETA, the Catalyst for Enhanced Skills Economic Growth and Employability HOW WAS CHIETA’s STRATEGIC PLAN COMPILED? The Strategic Plan and APP was compiled as per Treasury Framework and legislative context requirements Policy contexts considered, inter alia NSDS III, National Development Plan, New Growth Path, Government Infrastructure Plan (SIPs), Government Medium Term Strategic Framework and Industry Policy Action Plan (IPAP III), White paper Post School Education and Training SONA 2016 CHIETA support to Minister of HET’s performance outcomes Clear linkages made between Strategic Plan and SSP on scarce and priority skills and implementation by way of pre-determined performance targets Nine(9) Strategic outcomes defined and ten (10) organisational performance programmes

FOCUS AREAS OF CHIETA STRATEGIC PLAN CHIETA, the Catalyst for Enhanced Skills Economic Growth and Employability FOCUS AREAS OF CHIETA STRATEGIC PLAN Rural development focus Green skills and occupations Public FET and HET collaboration Bursary support Artisan related training and RPL Government partnerships Industry partnerships and work integrated learning Transformational focus Organisational and performance environment IT Governance People management and related resource planning Risk Management

CHARACTERISTICS OF ANNUAL PERFORMANCE PLAN 2017/18 CHIETA, the Catalyst for Enhanced Skills Economic Growth and Employability CHARACTERISTICS OF ANNUAL PERFORMANCE PLAN 2017/18 Fifty nine (59) Performance indicators with predetermined organisational targets Supported through ten strategic programmes Estimated budget for 2017/18 for each strategic programme and each performance indicator worked out Signed Service Level Agreement with DHET for 2017/18 Materiality and Significance Framework this is set at 1% CHIETA Organisational alignment and implementation plans made.

Overview of Annual Budget for 2017/18 CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability Overview of Annual Budget for 2017/18 Total Projected Revenue Budget for 2017/18 of R529.5 million Expenditure budget for 2017/18: Discretionary Grants and Projects expenditure – R369.9 million Mandatory Grants expenditure – R94.1 million Administration expenditure – R65.5 million

ESTIMATED BUDGET FOR CHIETA’S STRATEGIC PROGRAMS FOR 2017/2018 FINANCIAL YEAR PROGRAM NUMBER   PROGRAMME NAME BUDGET ALLOCATION 2017/18 1 Administration 65,531,534 2 Research and Skills Planning 9,751,928 3 Occupationally directed programmes 267,513,342 4 TVET Colleges 21,204,225 5 Adult and youth language and numeracy 4,882,500 6 Workplace based development 94,141,253 7 Support to NGOs , CBOs and SMMEs 1,863,225 8 Public Sector capacity building 3,307,500 9 Career Guidance 2,756,250 10 Government medium term priorities 58,557,994 TOTAL 529,509,750

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability THANK YOU!  THANK YOU FOR YOUR SUPPORT. Without you we could not have done it! ENJOY YOUR DECEMBER BREAK ! BE SAFE!!! 