Strategic Plan 2015/16 to 2019/20 Ms Nombulelo Nxesi CEO Portfolio Committee on Higher Education and training meeting 17 May 2017

PRESENTATION OUTLINE What informs the SETA Strategic Plan? How is the Strategic Plan developed? What are the key sections of the Plan? How is the Plan implemented, monitored and progress reported?

1. WHAT INFORMS THE SETA STRATEGIC PLAN? National Development Plan’s Chapter 9 – (sections on ECD, Basic education and Post school); Medium Term Strategic Framework - Outcome 6.1: Quality basic education; and Outcome 6.5: Skilled and capable workforce to support an inclusive growth path; National Skills Development Strategy III; and ETD Sector Skills Plan 2015-2019.

2. HOW IS THE STRATEGIC PLAN DEVELOPED? Development process: Draft document developed by a Planning Team comprising Research, M&E and Operations specialists, using relevant plans discussed above; First draft document is presented to Management and all 5 SETA Chambers, namely Schooling, ECD&AET, TVET, Provisioning and Research/Higher Education for consultation; Second draft document is consulted with the Executive Committee of the Accounting Authority through a strategic planning workshop;

2. HOW IS THE STRATEGIC PLAN DEVELOPED? Cont.. Development process: d) Final draft is presented to the Accounting Authority for approval to be submitted to DHET; e) Feedback from DHET is used to revise the draft document; f) Revised document is further consulted with constituencies through Chambers and Skills Development Committees; g) Final document is presented to Management, ExCom and Accounting Authority for approval; and h) Final approved Strategic Plan is submitted to DHET, National Treasury and Parliament.

3. WHAT ARE THE KEY SECTIONS OF THE PLAN? Part A - Section 6: Strategic Outcome Oriented Goals; Part B - Section 7: Strategic Objectives (SETA Programmes)

Strategic outcome oriented goals An effective organisation with good corporate governance practices. Labour market information (LMI) mechanism in place to inform sector skills planning through credible and empirical research. A skilled personnel to improve teaching and learning Increased number of graduates and the unemployed who successfully enter the post school education and training system and the labour market respectively. Increased number of skilled practitioners in ECD, NGOs, trade unions, political parties, SETAs, professional bodies, libraries and archives institutions through skills development. Improved quality of service delivery and performance through the implementation of quality and monitoring systems. 1 2 3 4 5 6

Programmes to respond to goals 1: Administration 2: Research and Skills Planning 3: Improve quality teaching and learning in institutions 4: Youth development and student support 5: Skills development for ETD constituencies 6: Improved quality assurance

4. HOW IS THE PLAN IMPLEMENTED, MONITORED AND PROGRESS REPORTED? The objectives of Strategic Plan are implemented through Annual Performance Plan (APP), which is monitored and achievement reported quarterly and annually. The 2017/18 APP has the following key sections: Part A: Strategic Overview – Section 3 Budget estimates Part B: Programmes and Sub-programmes Plans

Programmes, Sub-programmes and budget allocations: Performance Indicators Administration Budget Governance Administration 152 Governance Structure members trained R450 000 Human Resource Management 75 employees developed through skills development R3 750 000 Information and Communication Technology 75% ICT governance compliance R3 200 000 Marketing and Communication 80% awareness and profiling of the organisation R3 700 000 Performance Monitoring and Evaluation 4 APP programmes monitored and 5 programmes evaluated R2 400 000 Audit and Risk Management 50% of risks within approved tolerance and appetite levels R2 550 000 TOTAL R16 050 000

Performance Indicators Administration Budget Programme 2 Sub-programmes Performance Indicators Discretionary Budget Administration Budget Sector Skills Plan 1 updated approved annual SSP to inform organisational planning R 1 104 000 R 11 600 000 Skills development support for research organisations 5 research organisations supported through skills development R 1 000 000 - TOTAL R 2 104 000

Performance Indicators Programme 3 Sub-programmes Performance Indicators Discretionary Budget Public TVET college lecturers and managers trained in scarce and critical skills 400 public TVET colleges lecturers and managers supported through skills development R12 000 000   Skills development support for community education and training colleges practitioners 100 Community Education and Training College practitioners supported through skills development R2 500 000 Skills development support for Universities South Africa (USAf) Universities South Africa (USAf) supported through skills development R2 300 000 Skills development support for public HEIs 26 public HEIs supported through skills development R33 140 000 Skills development support for private HEIs 20 private HEIs supported through skills development R2 000 000 Skills development support for private FET colleges 20 private FETs supported through skills development R2 499 450 Public school teachers enrolled in full qualification programmes 1 000 public schools teachers enrolled in Learnerships/full qualifications R26 000 000 Public school teachers enrolled for part qualifications/skills programmes 5 000 public schools teachers enrolled in part qualifications/skills programmes R50 000 000 Public school teachers awarded bursaries for further studies 2 000 public school teachers awarded bursaries Government officials in the education sector enrolled in public administration and management development programmes 2 000 Government officials in the education sector enrolled in public administration and management development programmes R60 000 000 Teacher support through Teacher Unions 5 Teacher Unions supported through skills development R4 500 000 TOTAL R244 939 450

Performance Indicators Programme 4 Sub-programmes Performance Indicators Discretionary Budget Students awarded new bursaries 500 students awarded new bursaries R30 000 000 Students awarded bursaries (renewals) 650 students awarded bursaries (renewals) R39 000 000 Graduates and under-graduates provided with workplace experience – (Internships), TVET college and UoT student placement 2 500 graduates and undergraduates provided with workplace experience (CDOs, Internships, TVET college and UoT graduate placement) R114 300 000 Unemployed candidates receive qualifications through Recognition of Prior learning (RPL) 250 candidates receiving qualifications through Recognition of Prior learning (RPL) R7 500 000 Unemployed enrolled in skills programmes 1 700 unemployed youth enrolled in skills programmes R9 350 000   Unemployed enrolled in learnership programmes 1 600 unemployed youth enrolled in Learnership programmes R80 000 000 Unemployed People with disabilities enrolled in skills programmes 500 unemployed people with disabilities enrolled in skills programmes R15 000 000 Support for cooperatives 18 cooperatives supported through skills development (continuation) R4 150 000 TOTAL R299 300 000

Performance Indicators Programme 5 Sub-programmes Performance Indicators Discretionary Budget Skills development support for trade unions, including trade union federations 15 trade union organisations, including trade union federations supported through skills development R4 000 000 Skills development support for Political Parties 4 political parties supported through skills development R3 000 000 Skills development for NLPEs and NGOs, including Worker Education Organisations 100 NLPEs, NGOs and Worker Education Organisations supported through skills development R2 762 500 Support for School Governing Bodies as employers 2 school governing bodies supported through skills development R1 527 500 Skills development support for SETAs paying levies to the ETDP SETA professional bodies 11 SETAs and professional bodies paying levies to the ETDP SETA supported through skills development R2 887 500 Skills development support for independent schools associations 8 independent schools associations supported through skills development R 5 500 000 Skills development support for private training providers One private training providers supported through skills development R3 000 000 TOTAL R22 677 500

Performance Indicators Administration Budget Programme 6 Sub-programmes Performance Indicators Administration Budget Learning Programme Evaluation 400 learning programmes evaluated R1 500 000 External Moderation of Learner Achievement 400 external moderations conducted Establishment of Assessment Centres 9 Assessment Centres established R2 000 000 TOTAL R5 000 000

Budgeted Income Statement 2016/17 2017/18 2018/19 2019/20 R REVENUE Levy income 358 046 120 394 710 043 418 392 646 443 496 204 Administration (10%) 46 535 987 49 338 755 52 299 080 55 437 025 QCTO (0, 5%) 2 363 690 2 466 938 2 614 954 2 771 852 Mandatory (20%) 90 871 335 98 677 511 104 598 162 110 874 051 Discretionary 232 596 954 244 226 839 258 880 449 274 413 276 Penalties and interest 13 515 114 13 600 000 14 416 000 15 280 960 Contributions from DBE 423 979 981 433 477 801 459 486 469 487 055 657 Investment Income 16 000 000 22 208 910 23 541 445 24 953 931 Other - Total revenue 825 863 060 863 996 754 915 836 560 970 786 752 EXPENSES Administration expenses 187 862 647 193 831 355 205 461 236 217 788 910 QCTO 1 970 498 2 466 938 Mandatory grant expenses 75 873 407 98 677 510 104 598 161 110 874 050 Discretionary grant expenses 560 156 508 569 020 950 603 162 207 639 351 939 FET Infrastructure NSF Expense Total expenses 825 863 061 970 786 752 Net surplus / (deficit)  

Contributions from the Departments of Education (DoEs); and Notes to Budgeted Income Statement Total revenue Sources of revenue Levy income; Contributions from the Departments of Education (DoEs); and Investments Income. Reasons for total increase in revenue: There has been increasing trend in actual revenues received per the audited financial statements for the 3 years ending 31st March 2016; Levy income is expected to increase year on year due to anticipated inflationary increases of the salary bills of employers; The increase in the contributions of the provincial DoEs from 10% to 30% of their training budgets; and Investment income is increasing because of the slow movement of the implementation of projects, resulting in low expenditure, more commitments and an increase in cash reserves which attract interest.

Administration expenses; Mandatory grant expenses; and Notes to Budgeted Income Statement Total expenditure Types of expenditure: Administration expenses; Mandatory grant expenses; and Discretionary grant expenses. Expenditure trends: There has been increasing trend in actual expenditure in the administration and discretionary grant expenses per the audited financial statements for the 3 years ending 31st March 2016; This was expected as the SETA budgeted revenue was also expected to increase; Although there was a decrease in the mandatory grant expenses in the 2014/15 and 2015/16 financial years, the expectation is that this expense will increase in future due to considerable efforts in educating employers to submit WSPs.

Prior Years Commitments Commitment Schedule Last Year Provision Opening Balance Payments Adjustments Closing Balance   16 833 9 764 - 7 068 Prior Years Commitments 98 586 51 900 -35 743 10 943 Last Year - Programme 2 Financial support for HEIs towards lecturer and staff development 8 998 6 102 -1 988 908 Grade R/Foundation Phase teachers supported for 2nd or later years 3 350 2 351 999 Number of academics in research or HE institutions trained at Masters level 1 100 Number of academics in research or HE institutions trained at PhD level 900 849 51 Number of Grade R/Foundation Phase learners enrolled in relevant qualifications 21 322 10 499 10 823 Number of primary and secondary school teachers who enrol in subject content and ICT skills 50 385 28 963 -3 076 18 345 Number of teachers in full service schools enrol in special needs programmes 13 219 11 414 -364 1 440 Number of TVET lecturers and management enrolled in relevant programmes 8 208 8 319 -2 080 -2 191 Primary and secondary teachers enrolled in end user computing learnership 20 227 14 315 -1 368 4 544 127 710 83 914 -8 877 34 919 Last Year - Programme 3 Number of national, provincial and district Officials enrolled in relevant learning programmes 55 655 16 713 -1 597 37 346 Number of school administrators placed in schools for the 2nd year 8 703 6 032 -3 270 -599 Number of school administrators trained 3 338 3 094 244 67 696 25 839 -4 867 36 990

Number of CDO’s placed at institutions of learning or workplaces 6 816 Commitment Schedule Last Year - Programme 4 Opening Balance Payments Adjustments Closing Balance Number of CDO’s placed at institutions of learning or workplaces   6 816 2 562 -4 245 9 Number of renewed bursaries for students 16 804 13 213 -74 3 516 Number of students awarded bursaries for full qualifications 27 059 22 664 -97 4 298 Number of students from UoTs placed in workplace experience programmes 1 517 -2 386 -802 3 100 Number of unemployed candidates receive qualifications through RPL 4 520 2 722 -1 798 - Number of youth enrolled in learnership programmes 30 809 25 064 -4 640 1 105 Number of youth placed in internship programme 5 438 3 840 -1 252 346 Number of youth provided with a second chance to improve their Matric results 6 000 4 328 -2 612 -939 PDW Unemployed Youth Learnership 13 722 9 495 -2 345 1 882 Workplace Experience Programme – (TVET College Students) 9 085 7 159 -1 500 426 121 769 88 660 -19 367 13 742

Total Last Year Programmes Commitment Schedule Last Year - Programme 5 Opening Balance Payments Adjustments Closing Balance   Skills Development Support for Youth Cooperatives 2 700 2 275 - 425 Support for HEIs in partnerships with HESA 394 354 -40 Teacher Unions Institutes receive financial support for approved interventions 2 260 1 938 -322 -0 Training and development of APPETD beneficiaries in skills learning programmes 1 153 750 403 Training and development of beneficiaries from SETAs paying levies to the ETDP SETA and Professional Bodies 1 168 905 -140 123 Training and development of Independent Schools beneficiaries 1 121 977 -144 Training and development of NLPEs beneficiaries in part qualifications 1 615 1 441 -252 -79 Training and development of Political Parties beneficiaries 715 504 -210 Training and development of Research Organisation beneficiaries in full qualifications 470 206 264 Training and development of Trade Unions beneficiaries 507 427 -85 -5 12 102 9 777 -1 195 1 131 Total Last Year Programmes 329 278 208 190 -34 305 86 782

Current Year - Programme 2 Commitment Schedule Current Year - Programme 2 Opening Balance Payments Adjustments Closing Balance Financial support for the development of a self-diagnostic assessment for teachers   1 790 - Development of a Five Year Sector Skills Plan (SSP) 600 Financial support to DBE on establishment of bradcast and digital platforms for teacher development 50 046 Financial support to DBE on establishment of broadcast and digital platforms for teacher development 38 904 20 803 18 101 Skills development for public TVET Colleges 36 209 8 428 27 782 Skills development support for independent schools associations 3 399 Skills development support for private levy paying HEIs, NGOs and TVET colleges 677 Skills development support for public HEIs 20 439 6 997 13 442 Skills development support for Teacher Union Institutes 2 174 Support for academics in research or HEIs at Masters and PhD levels (NGAP) 2 250 Teachers in public schools enrolled in ICT learnership programmes 54 894 14 156 40 738 Teachers in public schools enrolled in ICT skills development programmes 48 668 7 307 41 361 Training of GET teachers on Home Language and English First Additional Language 55 899 53 328 2 571 315 949 111 018 204 930

Current Year - Programme 3 Commitment Schedule Current Year - Programme 3 Opening Balance Payments Adjustments Closing Balance Development of curriculum content for the Advanced Diploma in Leadership and Management Diploma (DBE Special Project)   3 674 - Enrolment of government officials in public admin. and management dev. programmes 930 826 Enrolment of key and strategic government officials in public admin. and management dev. programmes 15 625 600 15 025 Placement of school administrators (Continuation - later years) 33 906 24 724 9 183 54 135 26 150 27 881 372 695 96 614 276 080

Current Year - Programme 4 Commitment Schedule Current Year - Programme 4 Opening Balance Payments Adjustments Closing Balance CDOs placed at institutions of learning or workplaces - Continuation   13 594 5 399 - 8 195 Learnership programmes for unemployed youth 65 837 16 999 48 838 New bursaaries for unemployed youth 23 684 13 634 10 050 New bursaries for unemployed youth 100 000 Recognition or Prior Learninng (RPL) 8 128 780 7 348 Renewed bursaries for unemployed youth 40 779 28 693 12 086 Skills programmes for unemployed youth 8 771 4 990 3 781 Unemployed enrolled on the Matric Re-Write/Second Chance Project 6 604 Unemployed youth awarded internships 25 485 6 763 18 723 Training for people with disabilities -Skills Programmes 15 911 628 15 284 Workplace experiential learning for unemployed youth (TVET colleges) 50 670 10 669 40 001 Workplace experiential learning for unemployed youth (UoTs) 13 231 8 061 5 170 372 695 96 614 276 080

Current Year - Programme 5 Commitment Schedule Current Year - Programme 5 Opening Balance Payments Adjustments Closing Balance Number of SGBs supported   1 020 202 - 818 Number of trade union federations supported in Skills development 600 Political Parties supported - Full Qualification 390 Political Parties supported - Full Qulification 2 338 888 1 450 Semi-registered ECD centres supported and fully registered 5 791 Support cooperatives (Continuation) - Full Qualification 2 000 Support for Private Training Providers (APPETD) - Full Qualification 502 Support for Private Training Providers (APPETD) - Full Qulification 1 500 500 Support for SETA and Councils paying levies to the ETDP SETA 2 446 462 1 984 Suppport for Universities South Africa (USA) - Full Qulification 112 1 388 Trade Union Federations supported - Full Qualification 1 910 Trade Union Federations supported - Full Qulification 364 243 121 20 860 3 406 17 454 Total Current Year 763 750 237 188 526 562 Total Balance Including Provision 1 208 447 507 044 -70 049 631 354

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