QCTO Annual Report Presentation (2016/17) Portfolio Committee on Higher Education and Training

“A GOOD STORY TO TELL”

Structure of Presentation Management and Governance Vision, Mission and Strategic Goals National Priorities Highlights Challenges Quality Assurance framework Achievements Response to Portfolio Committee recommendations Good story to tell – Qualifications and Testimonials Financial Report.

Senior Management Structure Prof : P. Lolwana Chairperson of Council Mr Vijayen Naidoo Chief Executive Officer Mr Thomas Lata Chief Director : Occupational Qualifications Vacant Chief Director : Quality Assurance Ms Ndivhudzannyi Madilonga-Khondowe Chief Director: Corporate Services and CFO

Governance Joint Committee Meetings Internal Audit Council Quality Assurance Committee Audit &Risk Committee Occupational Qualifications Committee Reports Joint Committee Meetings Internal Audit

Vision, Mission and Values The QCTO’s vision is to qualify a skilled and capable workforce. Mission The QCTO’s mission is to effectively and efficiently manage the occupational qualifications sub-framework in order to set standards, develop and quality assure national occupational qualifications for all who want a trade or occupation and, where appropriate, professions Values Innovation and Excellence Ownership and Accountability Ethics and Integrity Respect and Dignity Empowerment and Recognition Authenticity

Strategic Goals Goal 1 Goal 2 Establishing an organisation that has a sound foundation enabling its sustainability for years to come Goal 2 Ensuring that South African citizens have access to credible skills training that supports both industrial and social development

Response to National Priorities National Development Plan Ministerial Guidelines White Paper on Post School Education and Training National Skills Development Strategy and Sector Education and Training Authorities Beyond 2016 within the context of an Integrated Differentiated Post-schooling Education and Training System NSDP

Response to National Priorities To achieve this QCTO is: Developing industry based qualifications (Including Trades) Development process led by Industry and Social partners Strengthening the TVET College system Reconstruction of NATED programmes Capacity for colleges to deliver occupational qualifications Contributing to Education/Industry Partnerships Partnership with EWSETA (War on leaks), DHET (Dual system Pilot Project) etc. Simplification of the National Qualifications Framework Realignment of Unit Standard based qualifications

Highlights 154 Occupational Qualifications registered as at end of reporting period. 30 EISAs developed Certification 221 SDPs accredited for Occupational Qualifications. 89% of KPIs achieved Clean Audit QCTO achieved 89% of its Key Performance Indicators (KPIs). Over 150 new occupational qualifications are registered on the Occupational Qualifications Sub-Framework (OQSF) More than 30 qualifications External Integrated Summative Assessments (EISAs) have been developed. Certification of all occupational qualification types are processed within record time by the QCTO or its affiliates Clean Audit. Favorable NQF implementation impact report.

Challenges Funding Annual Fiscus Allocation Baseline funding insufficient Impact on organisational structure (Core Operations) SETA Levy Grant Locked in at 0.5 % QCTO Business Case Stakeholder Engagements Variant stakeholders Meeting stakeholders expectations QA of Two systems Historically registered qualifications New Occupational qualifications

Quality Assurance Framework The OQSF currently contains a mixture of qualifications, i.e. new Occupational Certificates, historically registered qualifications and the N4 – N6 NATED programmes which fall into our ambit With the current mix of different types of qualifications on its framework, the QCTO has delegated quality assurance functions to its Quality Assurance Partners (SETA’s and Professional Bodies), to assist with the quality assurance of historically registered qualifications (until an OC or re-aligned qualification has been registered). Thus a simplification of the NQF is envisaged where quality assurance is managed by the QCTO. The QCTO is actively pursuing new ways of carrying out quality assurance activities, including e-assessment and e-verification where appropriate.

Quality Assurance Standards The QCTO’s key components for quality assurance are: Effective management of processes, information, resources and systems Valid accreditation (SDPs and ACs) and monitoring compliance Use of effective internal verification systems Effective quality assurance of the External Integrated Summative Assessment by the QCTO Successful validation of QCTO qualifications

What does this mean for industry? Employing learners that have passed the EISA have the following benefits: They will be competent workers - Competencies have been displayed in the relevant work tasks in the EISA Employers can be confident in their ready-for-work skills (no further training or mentoring required), as they have proven their competency to do the job in the EISA Whether learners qualify for the EISA via the RPL route, or via providers, they all sit for the same standardised EISA – testimony to the credibility of the QCTO certificate The calibre of those with a QCTO certificate can be trusted by employers as all learners had to meet the same set of standards nationally Learners are able to apply their knowledge and skills

Achievements 80 qualifications recommendation to SAQA for registration. 20 prioritised occupational qualifications with learner uptake. 37 AQPS and 30 QAPs monitored 78 Historically registered qualifications identified for deactivation SDPs accredited within the turnaround time 43 TVETs and Private providers 20 LQDFs trained 137 Assessment Centers accredited within turnaround time 3 new AQPs and 10 extension of scope approved. 19 625 applications for certification processed 8 710 verification requests processed Joint project QCTO and DHET - processed 18 456 Diploma applications, just over 2000 were declined due to failure to meet prescribe minimum requirements Evaluation Tools developed by QCTO

Indicators not Achieved Quality Assurance functions delegated to SETAs and professional bodies taken back by QCTO In the 2017/18 cycle, the taking back of the functions delegated to SETAs will be prioritised by subsuming this under the broader function mandate of the QCTO viz. the quality assurance of qualifications and part qualifications registered on the OQSF. In terms of the Council approved plan called Vision 2020, certain SETAs will be identified for take over. Linked to approval of the QCTO Business Case Upload of Learner Achievements onto the NLRD The QCTO will implement the necessary control processes to manage the upload of learner achievements to the NLRD. The upload directly from the QCTO will only be possible once the QCTO MIS is fully implemented.

Response to Portfolio Committee recommendations The entity should improve its monitoring and evaluation function to ensure that private training providers do not offer unaccredited programmes. Establishment of Quality Assurance Unit Providers applying for accreditation to offer Occupational Qualifications accredited within 90 day turnaround time Monitoring of Quality Assurance Partners

Response to Portfolio Committee recommendations Additional resources should be made available to the entity so that it can increase its financial and human capacity in the post-school education and training (PSET) sector. QCTO Business Case submitted to DHET.

Response to Portfolio Committee recommendations PC: The digitisation process of learner records for the old qualifications dating back to the 1960s should be expedited. QCTO granted NSF funding R19,5 million over a three year period.

Response to Portfolio Committee recommendations The entity should assist the DHET to review and reconstruct the report 191 (NATED) qualifications so that they are aligned to industry needs. . Bookkeeper OC –registered Events Manager, Personal Assistant, Travel and Tourism – submitted to SAQA Office Administrator – public comment phase

Response to Portfolio Committee recommendations The occupational qualifications learner uptake, especially scarce and critical skills programmes, should be expanded to support development. . Most Qualifications to support the following projects developed and registered: Dual System Pilot Project (13 trades) SIPS War on Leaks Operation Phakisa

Priority occupational qualifications that support renewable energy developments OC: Solar Photovoltaic Service Technician OC: Wind Turbine Service Technician OC: Hot water System Installer (Solar Water Heater Installer) Above: Photovoltaic panels in the Spanish-built Sishen Solar Park at Kathu in the Northern Cape

Priority occupational qualifications that support National Road Safety Strategy OC: Traffic Officer OC: Road Safety Officer OC: Traffic Officer (Crash Investigator) OC: Driving School Instructor

Priority occupational qualifications that support Car manufacturing sector - Car Manufacturing Industry OC: Instrument Mechanician, OC: Vehicle Painter (Automobile and Marine Painter) OC: Metal Machinist (Automotive Machinist) OC : Lubrication Equipment Mechanic OC: Mechanical Fitter Electric Motor Vehicle

Ocean Economy – Operation Phakisa  South Africa is surrounded by a vast ocean which has not fully taken advantage of the immense potential of this untapped resource. The oceans have the potential to contribute up to 177 billion rand to the gross domestic product (GDP) and create just over one million jobs by 2033.

Priority Occupational Qualifications linked to Ocean Economy – Operation Phakisa OC: Boat Builder and Repairer (Ship Builder) OC: Boat Builder and Repairer (Boat Builder) Additional qualifications in Evaluation Process Lighthouse Keeper (Aids to Navigation Technician) Dock Master Ship’s Engineer (Electro Technical Officer) Air Traffic Controller (Vessel Traffic Controller) Diver Airport or Harbour Manager (Maritime Search and Rescue Co-ordinator) Aircraft Navigator (Aids to Navigation Manager) Priorities identified by South Africa Maritime Safety Authority (SAMSA) - through TETA

Priority occupational qualifications that support transportation industry - rail industry Occupational Certificate: Train Driver OC: Railway Signal Operator (Functional Yard Operator) The inauguration of the 95th electric locomotive jointly produced by Chinese and South African companies at a plant in Pretoria, 19 March 2015

Testimonials from successful learners so far: “Occupational qualifications such as these are extremely beneficial. The programme is unique because it requires you to have the work experience in order to qualify, thus you get the adequate work experience which makes a good compliance officer a great compliance officer. I have truly gained experience and knowledge which will benefit my career eternally.” Chantelle Sampson, OC: Compliance Officer “My goal now is to be amongst the top tax professionals in South Africa, for which the QCTO’s OC: Tax Professional qualification has been an inspiration.” Benjamin Mbana, OC: Tax Professional “I can now do my job better than my supervisor!” Tabile, Atteridgeville, OC: Health Promotion Officer “I have grown leaps and bounds and it has been a massive yet rewarding learning curve.” Daniel Dias, OC: Tax Professional

Ms N Madilonga - Khondowe Chief Director: Corporate Services

Statement of Financial Performance 2016/2017 Annual Report FINANCIAL RESULTS Statement of Financial Performance 2016/17 R’000 2015/16 REVENUE 87,677 64,757 Grant allocation: DHET 23,138 21,848 Grant Allocation: SETA 60,598 40,000 Finance Income 1,862 1,377 NSF Funding - 356 Other Income 2,079 1,176 TOTAL EXPENDITURE 76,527 74,160 Compensation 43,019 38,440 Other Expenses 33,508 35,720 NET SURPLUS FOR THE YEAR 11,150 (9,403) RATIO OF COMPENSATION EXPENDITURE 56% 52%

Statement of Financial Position 2016/2017 Annual Report FINANCIAL RESULTS Statement of Financial Position 2016/17 R’000 2015/16 ASSETS 21,875 14,602 Current Assets 14,046 8,231 Non Current Assets 7,829 6,371 LIABILITIES 5,610 9,486 Current Liabilities Non Current Liabilities - NET ASSETS 16,265 5,116 LIQUIDITY RATIO 3.8:1 1.5:1

CLEAN Audit Outcome for 2016/17 AUDIT OUTCOMES CLEAN Audit Outcome for 2016/17 Annual Financial Statements - No Material Findings Predetermined Objectives - No Material Findings Compliance with Legislation - No Material Findings Internal Controls - No significant deficiencies identified

QCTO Certificate When the certificate is held to the light, the paper reveals the RSA Watermark and also have invisible fibers Guilloche Pattern with a boarder printed from silver to red RSA coat of Arms printer in full colours Laser perforation of Serial Number Micro Text printing Document serial number – bleed through ink Foiling in different colours

Thank you