Briefing on capacity building in local government Presenter Name • Nqaba Nqandela Parliament, 09 June 2015

Contents Introduction Top 5 areas that require improvement in the programme Top 5 areas that are working effectively in the programme Plans for 2016/17 and APP targets Presentation Title • Presentation to the COGTA PC • Date June 2015

Statutory role The Local Government Sector Education and Training Authority was established in terms of the Skills Development Act (No. 97 of 1998) and is mandated to promote skills development for the local government sector Relicensed by the Minister of Higher Education and Training for the period of April 2011 to March 2016 Operates within the skills development framework articulated in the National Skills Development Strategy III framework, Skills Development Acts, and SETA Grant Regulations Offers a range of occupationally directed skills development programmes including learnerships, apprenticeships, skills programmes, internships, work integrated learning, bursaries, AET and RPL Presentation Title • Presentation to the COGTA PC • Date June 2015

Effecting our mandate through sector skills planning “SETAs play an important role in gathering statistics and other relevant information on labour market skills needs and training provision... Such information is essential in planning to meet the country’s skills needs and guiding investment in education and training provision.” NSDS III, 2011 This is mainly done through the development and updating of the Sector Skills Plan (SSP) The SSP informs skills development initiatives for the local government sector, and is translated into the Strategic Plan and Annual Performance Plan of the LGSETA Presentation Title • Presentation to the COGTA PC • Date June 2015

Effecting our mandate through sector skills planning The purpose of the SSP is to: Provide a sector profile; Analyse skills demand and supply within the sector, and determine skills development priorities; Identify sector specific skills development objectives and goals that will meet sector needs, including scarce skill needs Identify strategies to address the objectives and goals; Identify activities that will support these strategies; Develop implementation and resourcing models for these activities; and Report on performance in relation to objectives and goals. Presentation Title • Presentation to the COGTA PC • Date June 2015

Effecting our mandate through sector skills planning Key to developing the SSP is the input from the sector that is done through the submission of the Workplace Skills Plan and Annual Training Reports In 2014, LGSETA held a WSP and ATR launch event to introduce a new online format for submissions SDF training sessions and technical support were provided at provincial and district-level New features were introduced to assist in higher levels of data completion and hence, quality of information being submitted Presentation Title • Presentation to the COGTA PC • Date June 2015

Effecting our mandate through sector skills planning Province Number of Municipalities Number of submissions Compliant Submissions Non-compliant (stakeholder signatures missing/not completed Compliant Submission Rate (%) Eastern Cape 45 100 Free State 24 23 1 96 Gauteng 12 KZN 61 58 3 95 Limpopo 30 Mpumalanga 21 North West 17 6 74 Northern Cape 32 28 4 88 Western Cape 2 93 Total 278 262 16 94 Presentation Title • Presentation to the COGTA PC • Date June 2015

Effecting our mandate through skills development implementation Employed (18.1) Unemployed (18.2) APP Target 13 200 12 650 DOI Requests 47 776 42 111 Over/(under) 34 576 29 461 The estimate of funding requests for 2014/15 was in region of R1.6bn but the LGSETA only had a budget of about R396,4m Presentation Title • Presentation to the COGTA PC • Date June 2015

Effecting our mandate through skills development implementation PROVINCE A B C D   E F G Approved Numbers Approved Numbers where no documentation was submitted Approved Numbers where partial documentation was submitted Funding Agreements Completed for approved numbers Funding Agreements not yet completed for approved numbers Number of funding agreements Potential training beneficiaries for 2013/14 (D+E) Conversion rate (%) (F/A*100) 18.1 18.2 Eastern Cape 2140 1580 498 355 1485 720 67 280 5 90 225 157 505 7.34% 31.96% Free State 897 1323 859 507 38 816 4.24% 1.97% Gauteng 10872 2346 9182 1513 1104 670 140 143 416 20 556 163 5.11% 6.95% KwaZulu-Natal 3033 3223 1900 1825 1033 145 323 10 930 100 1253 3.30% 38.88% Limpopo 575 435 533 352 42 83 7.30% 19.08% Mpumalanga 481 265 403 108 170 2 216 172 44.91% 29.91% North West 2772 3370 2329 3016 122 128 321 234 443 362 15.98% 10.74% Northern Cape 202 34 0.00% Western Cape 10546 1919 4175 739 6013 1152 127 24 231 4 358 28 3.39% 1.46% Total 31518 14805 19943 8744 9635 2687 734 1967 1176 1415 1910 3382 6.06% 22.84% Presentation Title • Presentation to the COGTA PC • Date June 2015

Effecting our mandate through skills development implementation Given low performance of previous year DG funded projects, the LGSETA took the decision to focus on the implementation of currently funded projects as many had not yet started by end of 2013/2014 financial year To further review processes to ensure greater performance and support provided to municipalities to comply from onset and ensure implementation Introduction of new DG process Presentation Title • Presentation to the COGTA PC • Date June 2015

Are we making an impact towards addressing scarce skills in the sector? Bursaries awarded by the LGSETA from 2011/12 to 2013/14 Development and transformation imperatives 2011/12 2012/13 2013/14 Total 18.1 18.2 Both Total of which: 181 176 321 127 131 472 633 775 1 408 Black Male 75  74 141 61 78 180 294 315 609 Black Female 100  73 161 55 53 292 314 420 734 White Male 3  16 11 5 14 21 35 White Female  13 8 6 19 30 PWD  0 Youth 151  172 197 125 74 422 769 1 191 Presentation Title • Presentation to the COGTA PC • Date June 2015

Are we making an impact towards addressing scarce skills in the sector? Learnerships registered by the LGSETA from 2011/12 to 2013/14 Development and transformation imperatives 2011/12 2012/13 2013/14 Total 18.1 18.2 Both Total of which: 1 923 1 058 1 134 364 1 031 1 888 4 088 3 310 7 398 Black Male 844  483 877 163 562 593 2 283 1 239 3 522 Black Female 992  575 229 201 445 1 295 1 666 2 071 3 737 White Male 42  0 18 17 77 White Female 45 10 7 62 PWD Youth 738  1 003 414 308 449 1 807 1 601 3 118 4 719 Presentation Title • Presentation to the COGTA PC • Date June 2015

Are we making an impact towards addressing scarce skills in the sector? Learnerships certificated by the LGSETA from 2011/12 to 2013/14 Development and transformation imperatives 2011/12 2012/13 2013/14 Total 18.1 18.2 Both Total of which: 851 224 1 303 72 530 384 2 684 680 3 364 Black Male 508  105 792 4 250 154 1 550 263 1 813 Black Female 288  119 510 68 247 230 1 045 417 1 462 White Male 50  0 1 12 63 White Female 5 21 26 PWD Youth 408  190 464 57 237 332 1 109 579 1 688 Presentation Title • Presentation to the COGTA PC • Date June 2015

Are we making an impact towards addressing scarce skills in the sector? Artisans registered by the LGSETA from 2011/12 to 2013/14 Development and transformation imperatives 2011/12 2012/13 2013/14 Total 18.1 18.2 Both Total of which: 171 381 112 188 125 404 408 973 1 381 Black Male 150 280 88 131 105 270 343 681 1 024 Black Female 12 66 14 36 15 94 41 196 237 White Male 8 34 10 20 5 40 23 117 White Female 1 2 PWD Youth 52 352 51 165 42 395 145 912 1 057 Presentation Title • Presentation to the COGTA PC • Date June 2015

Are we making an impact towards addressing scarce skills in the sector? Artisans certified by the LGSETA from 2011/12 to 2013/14 Development and transformation imperatives 2011/12 2012/13 2013/14 Total 18.1 18.2 Both Total of which 65 202 61 203 39 88 165 493 658 Black Male 48 130 51 142 29 63 128 335 463 Black Female 16 59 4 43 3 14 23 116 139 White Male 6 17 7 11 42 58 White Female 1 PWD Youth 36 137 184 86 50 407 457 Presentation Title • Presentation to the COGTA PC • Date June 2015

Are we making an impact towards addressing scarce skills in the sector? Skills Programmes registered by the LGSETA from 2011/12 to 2013/14 Development and transformation imperatives 2011/12 2012/13 2013/14 Total 18.1 18.2 Both Total of which: 4 703 46 1 413 912 805 553 6 921 1 511 8 432 Black Male 2720  15 765 341 442 230 3 927 586 4 513 Black Female 1667  31 302 571 300 323 2 269 925 3 194 White Male 205  0 35 0  27 267 White Female 111 8 36 155 PWD 15 Youth  42 303  624 467 389 785 1 055 1 840 Presentation Title • Presentation to the COGTA PC • Date June 2015

Are we making an impact towards addressing scarce skills in the sector? Skills Programmes certified by the LGSETA from 2011/12 to 2013/14 Development and transformation imperatives 2011/12 2012/13 2013/14 Total 18.1 18.2 Both Total of which: 158 288 6 165 128 360 6 683 416 7 099 Black Male 104 121  3 337 64 122 3 563 185 3 748 Black Female 46 167 2 042 110 2 198 231 2429 White Male 2 561 89 652 White Female 8 225 39 272 PWD Youth 28 144 2 952 19 88 3 068 163 3 231 Presentation Title • Presentation to the COGTA PC • Date June 2015

Effecting our mandate through skills development implementation Given low performance of previous year DG funded projects, The LGSETA reviewed the WSP & ATR and related DOI approval process Past practice included bringing a group of representatives to assess aspects of WSP in terms of completion of data and provide improvement recommendations Process did not appear to be a substantive evaluation of fit for purpose and alignment with LGSETA goals, sector and/or national priorities The process followed in 2014: Develop a target allocation model to inform Provincial and National targets using the 7 NSDS III imperatives Review 2013/14 performance for recommended interventions Review 2014/15 submissions and assess against 2013/14 performance and areas of focus of LGSETA as informed by SSP Recommended list for approval Presentation Title • Presentation to the COGTA PC • Date June 2015

Effecting our mandate through skills development implementation Grants policy Distinction between regular and special projects Integration of applications into a single application window Appointment of an independent service provider to support allocations 3 stage allocation process Compulsory due diligence for shortlisted applicants “Intention to contract” notification – suspensive clauses to be met Contracting Funding framework Performance based payment method – no tranches Dedicated bank accounts or vote accounts/cost centres in case of public institutions Learner bank accounts for stipend payment Presentation Title • Presentation to the COGTA PC • Date June 2015

Compliance and evaluation Effecting our mandate through skills development implementation Closing date Award Contracting Advert window Compliance and evaluation Due diligence Suspensive clauses 19/01/2015 27/02 13/03 19/03 30/04 Application portal closes 27 February 2014 – no late submissions Due diligence visits will be scheduled in week of 9 March 2015 All applicants must prepare their due diligence files as part of their applications and have files ready on date of visits Visits will be scheduled with 24 hrs notice Incomplete due diligence will negatively impact allocations Suspensive clauses in ‘Intention to contract’ must be fulfilled within prescribed timelines (at least 30-60 days from date of letter) LGSETA anticipates learners to be funded in this advert window to start training in May 2015 Presentation Title • Presentation to the COGTA PC • Date June 2015

Monitoring skills development LGSETA operates from a national office in Gauteng and has a presence in all provinces Each provincial office has dedicated staff for project coordination and quality assurance of training provision. A senior manager: Monitoring and Evaluations has been appointed to manage and strengthen this function Regular visits are scheduled to monitor project implementation in the workplace and at the training provider by the provincial office where active training is taking place with monitoring documentation completed by the relevant parties. Reports inform any support required or corrective measures to be taken by the SETA The ETQA Unit further supports monitoring namely through ensuring that only accredited training providers as per the LGSETA’s quality assurance policies deliver learning interventions. Presentation Title • Presentation to the COGTA PC • Date June 2015

Challenges faced On the 20 March 2013 the Director-General: Department of Higher Education and Training placed the LGSETA under administration, as directed by the Minister of Higher Education and Training This was as a result of serious governance and management failures in the organisation The turnaround strategy aimed among other issues, to facilitate the process of repositioning the organisation to make it more relevant and responsive to the needs of the local government sector Presentation Title • Presentation to the COGTA PC • Date June 2015

Challenges faced The repositioning of the LGSETA aims to make it a SETA of operational and people excellence, characterised by the ability to attract top talent and retaining key personnel Attracting suitably qualified and experienced staff proved to be challenging in view of the license period of the SETA. A major achievement for the SETA is the fact that all appointments at executive level have been concluded The focus now shifts to the lower levels and the key areas are on creating organisational capacity, performance management, leadership development and change management, employee wellness, as well as rewards and recognition Presentation Title • Presentation to the COGTA PC • Date June 2015

Challenges faced The absence of a coherent communication strategy contributed to poor stakeholder relationship management as well as visibility of the LGSETA An integrated strategy has be developed for approval and implementation to rebuild the organisation’s reputation in the SETA environment The IT environment was characterised by the limited ability of the organisation to optimally function at the level that is required given the on-going technological changes An IT and systems audit have been conducted with implementation recommendations for a stable IT platform Presentation Title • Presentation to the COGTA PC • Date June 2015

Challenges faced Auditor-General reports also highlighted challenges in financial and performance management, influenced by limited capacity in the organisation and a lack in standard operating procedures, systems and documented system descriptions, monitoring and reporting of performance, and records and document management. Capacity challenges in local government adds to these limitations. The SETA’s response to these include: Strengthen capacity in Finances and Operations Review business processes and procedures Improve communication and support to stakeholders Review the information, records and document management Ensure staff received appropriate training and development Reviewing the monitoring, evaluation and reporting function Presentation Title • Presentation to the COGTA PC • Date June 2015

Challenges faced Auditor-General reports also highlighted challenges in financial and performance management, influenced by limited capacity in the organisation and a lack in standard operating procedures, systems and documented system descriptions, monitoring and reporting of performance, and records and document management. Capacity challenges in local government adds to these limitations. The SETA’s response to these include: Strengthen capacity in Finances and Operations Review business processes and procedures Improve communication and support to stakeholders Review the information, records and document management Ensure staff received appropriate training and development Reviewing the monitoring, evaluation and reporting function Presentation Title • Presentation to the COGTA PC • Date June 2015

Coordinating capacity building in local government The LGSETA has been working with COGTA and SALGA who formed part of the Working Group that was formed for the purpose of the Administration period. Other stakeholders included SAMWU and IMATU Several interventions have been funded by the LGSETA in response to skills needs identified by these stakeholders LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

LGSETA funded COGTA Interventions Coordinating capacity building in local government LGSETA funded COGTA Interventions Project Number of Beneficiaries Funding amount Status of project Councillor Toolkit N/A R800k Active Women Councillor Support R1.4m Inactive Councillors with Disabilities R500k Local Government Competency Framework R3m National Coordinated Programme of Support R550k LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

LGSETA funded COGTA (Provincial) Interventions Coordinating capacity building in local government LGSETA funded COGTA (Provincial) Interventions Project Number of Beneficiaries Funding amount Status of project Disaster and Risk Management (KZN) 45 R270k Active Fire and Rescue Services (KZN) R720k Municipal Finance Management 90 R450k Monitoring and Evaluation (LP) Municipal Public Accounts (MP) 163 R930k Municipal Public Accounts (LP) R513k Management Development Programme (NLPE) 36 R886k LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

LGSETA funded SALGA Interventions Coordinating capacity building in local government LGSETA funded SALGA Interventions Project Number of Beneficiaries Funding amount Status of project Councillor Development Programme 5 180 R28m Active: 2000 learners registered to date Leadership Development Workshop 599 R3m Active: 200 learners registered to date Capacity Building Grant SALGA R5m over 3 years First grant amount of R2m paid and balance being processed LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

LGSETA funded SALGBC Interventions Coordinating capacity building in local government LGSETA funded SALGBC Interventions Project Number of Beneficiaries Funding amount Status of project Local Labour Forum Capacity Building 4000 R12m Active – Learner recruitment currently under way LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

Way forward Despite the challenges facing the organisation, the stage is set for the LGSETA to reclaim its position as an important facilitator of skills development in the local government sector The new CEO has been appointed from May 2015 Invitations for board members were advertised and the process should be completed by September 2015 Invitations for 2015/16 discretionary grants has been concluded and contracting is in process Submissions for mandatory grants have been concluded on 30 April (31 May) A communication strategy has been finalised, and through planned engagements the SETA will improve in being responsive to the skills development needs of the sector LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

Way forward: SETA relicensing SETAs are licensed for a 5 year period to address the skills development needs as outlined in the NSDS and in this case, NSDS III Current SETA landscape is due to end in March 2016. LGSETA is awaiting the new NSDS and SETA landscape to be announced for consultationby the Minister of Higher Education and Training afterwhich, the LGSETA will be in a better position to articulate how it responds to the new NSDS and SETA landscape LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

Way forward: SETA relicensing SETAs are licensed for a 5 year period to address the skills development needs as outlined in the NSDS and in this case, NSDS III Current SETA landscape is due to end in March 2016. LGSETA is awaiting the new NSDS and SETA landscape to be announced for consultationby the Minister of Higher Education and Training afterwhich, the LGSETA will be in a better position to articulate how it responds to the new NSDS and SETA landscape LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

COMMENTS /QUESTIONS Thank you