23 April 2005 PRESENTED BY: SSW NKOSI CHIEF EXECUTIVE OFFICER - LGSETA Presentation to the Portfolio Committee on Provincial and Local Government ANNUAL REPORT (APRIL 2004 – 31 MAY 2005) 23 April 2005 PRESENTED BY: SSW NKOSI CHIEF EXECUTIVE OFFICER - LGSETA 2018/11/07

FRAMEWORK OF PRESENTATION INTRODUCTION & OVERVIEW HIGHLIGHTS & LOWLIGHTS GOVERNMENT STRATEGIC PROJECTS REVENUE CONTRIBUTION TO GOVT. STRATEGIC PROJECTS CHALLENGES OPPORTUNITIES CONCLUSION 2018/11/07

INTRODUCTION & OVERVIEW OUR MANDATE: To manage and coordinate training and skills development within the local government sectors. The LGSETA should bring skills to the employed and those wanting to be employed in the sector. 2004/5: A year of consolidation: Make stronger. More solid. Combine into a single unit. 2018/11/07

WHY? We did not concentrate on the failures, we were keen to learn from the mistakes of the past and use the experience gained to accelerate implementation. The Annual Report will bear testimony 2018/11/07

HIGHLIGHTS LEARNERSHIPS REGISTERED 25 LEARNERSHIPS REGISTERED & 8 SKILLS PROGRAMS 49% OF REGISTERED LEARNERSHIP IMPLEMENTED A TOTAL OF 357 APPRENTICES INDENTURED IN VARIOUS APPRICESHIPS TOTAL OF LEARNERS INDENTURED IN LEARNERSHIP 630 COUNCILLORS TRAINED A TOTAL OF 965 LEARNERS ENROLLED IN SKILLS PROGRAMS 540 ASSESSORS TRAINED 195 RPL ADVISORS TRAINED SCOPING EXERCISE TRAINING FOR TRADITIONAL LEADERS UNDERTAKEN ABET TRAINING 2018/11/07

HIGHLIGHTS (Cont….) TRAINING PROVIDER ACCREDITATION ALL NINE (9) PROVINCES A PROVIDER ON VARIOUS LEVELS OF ACCREDIATATION Province Provisionally Accredited Registered Approved Fully Accredited Gauteng 8 5 Limpopo 3 4 1 2 Mpumalanga KwaZulu Natal Western Cape North West Northern Cape Free State Eastern Cape 6 2018/11/07

LOWLIGHTS ASSESSOR TRAINING 54 OUT OF 540 TRAINED ASSESSORS WERE DECLARED COMPETENT COUNCILLOR DEVELOPMENT PROGRAMME 423 OUT 630 DECLARED COMPETENT 47 RECIEVED CERTIFICATE OF ATTENDANCE 160 DROPPED OUT TRADITIONAL LEADERSHIP TRAINING NO TRAINING UNDERTAKEN DUE TO UNAVAILABILITY OF CURRICULUM FRAMEWORK 2018/11/07

GOVT STRATEGIC PROJECT COMMUNITY DEVELOPMENT WORKERS 2804 LEARNERS R74 100 MILLION LOCAL GOVERNMEMNT LEADERSHIP ACADEMY SIYAYA LEARNERSHIP EPWP PROJECT CONSOLIDATE PROJECT PHUMELELA JHB METRO ISIQALO(PLANNED) 2018/11/07

Key programmes / projects STRATEGIC FRAMEWORK FOR EFFECTIVE BUSINESS PLANNING Organizational Capacity Internal Policies and Systems Marketing & Communication Governance Provincial Capacity Quality Training Increased Capacity Delivery Priority Learning & skills programme implementation STRATEGIC PROJECTS ABET P/management SDF training, etc Priority Qualifications and learnerships developed Increase quality & quantity of workplace participation Quality Assurance Key programmes / projects 2018/11/07 SSP Review: Key Sector Needs

REVENUE National Skills Fund and Donor Funding Conditional funds of R24, 717m were received from the National Skills Fund for the purposes of the Community Development Programme. Interest accrued – R0, 363m Recognised as a liability until the conditions attached were met. During the year, R7 818 702.09 eligible project expenses were incurred and a corresponding amount was recognised as revenue At year end, R17 260 820.40 continues to be accounted for as a liability until the remaining conditions attached have been met Other Income Comprises of penalties and interest paid by employers in the sector - R1, 288m (2004: R0, 910m). Investment Income Decreased by 21% to R15, 038m (2004: R18, 962m). The weighted average interest rate on short term bank deposits was 8, 37% (2004: 11, 4%). Investment Income, penalties and interest are immediately allocated to the Discretionary Fund and utilised for Discretionary Grants and Special Projects. 2018/11/07

REVENUE (Cont….) Skills Development Levy Income (80%) Income from Skills Development Levies including R0, 884m (2004: Nil) levies paid by government departments (DWAF) for the year increased by 8% to R145, 103m (2004: R134, 221m) The increase is in the main attributed to the annual increment in salaries in the local government sector 2018/11/07

MANDATORY GRANTS Mandatory Grants Disbursed - R64, 521m as indicated below: M1 Grants for prior Scheme Years R 9, 997m M2 Grants for prior Scheme Years R48, 027m M1 Grants for 2005 Scheme Year R 6, 497m Total Mandatory Grants disbursed R64, 521m Discretionary Grants and Special Projects R36, 621m Total Grants and Special Project disbursed R101, 142m (2004:R132, 930m). 2018/11/07

MANDATORY GRANT INCOME AND DISBURSEMENTS The following graph illustrates the status of Income and Disbursements for Mandatory Grants by Grant Type. 2018/11/07

DECREASE IN GRANT DISBURSEMENTS Multi year agreements have been entered into for Learnership grants and projects and a provision has not been raised for future obligations Implementation Grants are generally paid in the next financial year One Metropolitan Municipality did not submit a training report (M2 Grant) for the 2003/2004 Scheme Year. The Minister of Labour in Government Gazette No. 27801, Regulation Gazette No. 8278 dated 18 July 2005 extended the date for all current and prior year submissions to 30 September 2005 Any submissions received after 30 September 2005 can not be entertained – unclaimed Mandatory grants will be forfeited and will accrue to the Discretionary Grant Reserve. 2018/11/07

ADMINISTRATION - INCOME AND EXPENDITURE Income for Administration was R16, 529m (2004: R14, 786m) (Levies paid by Government dept. included (DWAF) R0, 774m (2004: Nil) Total expenditure was R16, 452m (2004:R13, 878m) representing an increase of 19% The increase in operational expenditure is in the main attributed to the establishment of three additional provincial offices and the appointment of additional staff. 2018/11/07

RESERVES Administration Reserves The administration surplus in the current year of R1, 723m (2004:R1, 646m) is a result of the retrospective adjustments made by SARS Surplus funds in excess of the depreciated value of assets will be moved to the Discretionary Fund Reserve on approval of the Accounting Authority in the preceding financial year Employer Grant Reserves The reserves of R175, 570m (2004:R129, 867m) is the net result of the current year transactions Discretionary Grant Reserves Discretionary Grant Reserves are R71, 596m (2004: R73, 541) Of the balance of R 71,596 million available in the Discretionary Reserve at the end of March 2005, R62,913 million has been approved and allocated for future projects and skills priorities as indicated in the commitment note in the Annual Financial Statements (Note 17.1) The balance of R8, 683 will be incorporated in the indicative budget aligned with the NSDS Objectives and the Strategic Plan for the next financial year. 2018/11/07

CASH AND CASH EQUIVALENTS R248, 852m (2004: R173, 988m) Net increase R74, 864 – Mainly attributed to the levy income for Mandatory Grants for the 2005 Scheme Year. Includes balance of NSF fund R17, 260m 2018/11/07

CONTINGENCIES In terms of the PFMA, all surplus funds as at year-end may be forfeited to National Treasury. As at year-end, this amount could not be quantified as National Treasury has not defined surplus funds. A request for the accumulation of the reserve funds has been submitted to National Treasury. At 31 March 2005, no formal approval has been obtained from National Treasury to retain surplus funds. 2018/11/07

CONTRIBUTIONS OF THE LGSETA ON NATIONAL GOVERNMENT STRATEGIC PROJECTS: Expanded Public Works Programme: 2018/11/07

Joint Programme: Labour Intensive Construction training: A joint steering committee has been established consisting of the following parties : DPW/ CETA/ LGSETA/ DPLG/ Salga The project was initiated by the Dept of Public Works The project is to train 1 200 municipal engineers, and municipal technical services staff in the design, management, contracting and implementation of labour intensive infrastructure programmes, implemented through the Municipal Infrastructure grants. LGSETA has set aside an amount of R 13 million over a three year period to support the implementation of the Expanded Public Works programmes. LGSETA is the contracting authority for the training programme Value of the current training contract is R 4,5 million In terms of a memo of understanding between CETA and LGSETA training is taking place against CETA registered unit standards at NQF levels 5 and 7 2018/11/07

Training Progress to Date: Training commenced April 2005 First phase focused on NQF level 5 training for those municipalities already awarded municipal infrastructure grants, metros and big cities Second phase focused on district municipalities and on those municipalities that are in the process of having their municipal infrastructure grants approved and relevant provincial departments eg roads, housing etc Third phase to commence March/ April 2006 on NQF level 7 training To date, 432 people have been trained Of the number trained, 199 people have been assessed as competent, 6 people have been assessed and deemed as not yet being competent 227 people still have to be assessed Assessment takes place upon the submission of a portfolio of evidence after the completion of the theoretical component of the training. CETA is responsible for quality assurance 2018/11/07

Training numbers by Province: No. of Trainees: Eastern Cape 81 Free State 11 Gauteng 36 KZN 52 Limpopo 49 Mpumalanga 61 N Cape Not yet started North West Western Cape 142 2018/11/07

CHALLENGES To achieve Government targets qualitatively rather than quantatively. Not just numbers ,but sustainable life-enhancing development. To make stakeholders develop an even greater appreciation to the reasons for the existence of the SETA. To rise to the demands of the increased delivery within the sector. To align our programmes to keep up with the changes in legislation and still relocate to the needs of the sector 2018/11/07

OPPORTUNITIES Better understanding of our statutory mandate. We have a strategy that is synthesized and synchronized with the mission of the NSDS. 2018/11/07

CONCLUSION The LGSETA have aligned its work and resources to the skills needs of the Local Government sector for effective delivery and implementation. As the political leadership we support the strategic framework to guide the Seta towards the desired vision. 2018/11/07

Questions? 2018/11/07