Portfolio Committee 2015 29 April 2015 Safety and Security SETA Strategic Plan and Annual Performance Plan Portfolio Committee on Higher Education 29 April 2015 SASSETA - your partner in skills development

CONTENTS Overview Budget Programmes (as current) Administration Skills Implementation and Monitoring Skills Planning, Research and Reporting Financial Information Report of the Administrator

OVERVIEW The Strategic Plan and APP were reviewed during the mid-year Review informed by the Departmental SLA The review had considered organisational structure SASSETA had introduced several new functions that needed to be aligned to the structure Chief Operations Officer Strategic Human Support Governance, Risk and Compliance Information Security Officer The budget was also revised to align to the APP to ensure that the targets in the APP are financially support

Medium-Term Expenditure Estimates BUDGET - REVENUE ADJUSTED BUDGET Medium-Term Expenditure Estimates 2014/2015 2015/2016 2016/2017 2017/2018 REVENUE TOTAL REVENUE 305 067 320 324 351 941 380 096 Discretionary Income 142 157 149 841 169 643 183 215 Mandatory Grant levy 47 338 47 605 49 986 53 985 General Fund (Admin) 100 824 109 669 118 443 127 918 Interest and penalties 5 167 5 730 6 246 6 745 Interest income 9 581 7 479 7 623 8 233 GENERAL FUND (ADMIN) REVENUE AVAILABLE FOR ADMINISTRATION Levy Income from Employers - 10.5% 29 970 32 667 35 607 38 455 Contribution from Government Departments 70 292 76 412 82 217 88 794 Other: Firearm Certification income 562 590 619 669

Medium-Term Expenditure Estimates BUDGET - EXPENDITURE ADJUSTED BUDGET Medium-Term Expenditure Estimates 2014/2015 2015/2016 2016/2017 2017/2018 PROJECTED EXPENDITURE 100 824 78 502 82 768 87 266 - Payroll Cost 47 287 42 854 45 853 49 522 QCTO 614 1 190 1 250 1 350 Other Operations Expenditure 52 993 34 458 35 665 36 394 CEO 12 093 8 302 8 592 8 768 HR and Finance & Admin 26 630 16 361 16 934 17 281 Skills Development 1 971 1 353 1 401 1 429 ETQA 419 288 298 304 Learnerships 756 519 537 548 Chambers 6 118 4 200 4 347 4 436 Marketing 4 709 3 233 3 346 3 414 Skills Administartion 295 203 210 214 Grant Disbursements 219 243 241 822 269 173 292 830 Mandatory Grants 42 674 40 464 42 488 45 887 Discretionary 176 569 201 358 226 685 246 943 Total Expenditure 320 067 320 324 351 941 380 096

Programme 1: Skills Planning, Research, Monitoring and Evaluation Programme Purpose : To develop a credible institutional mechanism for skills planning to provide reliable information on supply and demand for skills in the Safety and Security Sector Strategic Objective Performance Indicator Baseline 2015/16 Target 7.5.1 : Establish a credible institutional mechanism for continuous skills planning SSP approved by DHET and other relevant stakeholders SSP, compiled, submitted and approved SSP approved by DHET and other relevant stakeholders by set date 7.5.2 Establish partnerships with Universities for labour market research and commissioned research by 2019/2020 Number of commissioned research commenced 3 research impact analysis for NSDSII and NSDSIII interventions

Programme 2: Skills Planning, Research, Monitoring and evaluation Programme Purpose : To develop a credible institutional mechanism for skills planning to provide reliable information on supply and demand for skills in the Safety and Security Sector Strategic Objective Performance Indicator Baseline 2015/16 Target 7.5.3 Built capacity within 5 government departments for skills planning and submission of WSPs/ATRs by 2019/2020 No. HRD units capacitated in sector skills plan and submission of WSPs/ATRs 5 7 of HRD units capacitated in sector skills plan and submission of WSPs/ATRs 7.5.4 Monitor and evaluate all discretionary grants projects by 2019/2020 Quarterly reports generated for all projects 4

Programme 2: Skills Implementation Performance Indicator Programme Purpose : Facilitation of the delivery of quality Learning Programmes, specifically targeting the scarce and critical skills within the sector. Identification of skills development provision challenges and addressed to ensure improved access to quality and relevant education and training in the sector including rural areas Strategic Objective Performance Indicator Baseline 2015/16 Target 7.6.1 Develop training partnerships agreements with Universities and TVETS No. of universities approved to offer SASSETA learning programmes 1 No, of TVETs approved to offer SASSETA learning programmes 4 7.6.2 Implementation of the training targets and Service Level Agreement with DHET No. of employed learners entering learnerships 1474 1800 No, of employed learners entering bursaries 161 350 No, of employed learners entering skills programme 5287 5000

Programme 2: Skills Implementation (Cont…) Performance Indicator Programme Purpose : Facilitation of the delivery of quality Learning Programmes, specifically targeting the scarce and critical skills within the sector. Identification of skills development provision challenges and addressed to ensure improved access to quality and relevant education and training in the sector including rural areas Strategic Objective Performance Indicator Baseline 2015/16 Target 7.6.2 Implementation of the training targets and Service Level Agreement with DHET No of unemployed learners entering learnerships 1849 3200 No of unemployed learners entering bursaries 357 380 No of unemployed learners entering skills programmes 1763 1600 No of artisans entered 470 500 No of AET programmes entered 179 300 No of unemployed entering internship/workplace 400 No of TVETs graduate placements 1781 2300 WIL Universities 98 180 No of learners completing WIL Universities 312

Programme 2: Skills Implementation (Cont…) Performance Indicator Programme Purpose : Facilitation of the delivery of quality Learning Programmes, specifically targeting the scarce and critical skills within the sector. Identification of skills development provision challenges and addressed to ensure improved access to quality and relevant education and training in the sector including rural areas Strategic Objective Performance Indicator Baseline 2015/16 Target 7.6.3 Provide support to Trade Unions, NGOs, CBOs, NLPE and SMME No of trade unions 2 5 No of NGOs No of CBOs 3 No of NLPEs No of Co-operatives supported 7.6.4 Establish partnership with QCTO No of qualifications registered with QCTO 7.6.5 Implement flagship programmes No of learners registered with flagship programmes 390 e

Programme 4.1: Office of the Chief Executive Officer Programme Purpose: To provide strategic direction and leadership to SASSETA with regard to implementation of strategic priorities in the Sector Skills Plan and Strategic Plan and the Annual Performance Plan. Strategic Objective Performance Indicator Baseline 2015/16 Target 7.1.1 Corporate Governance framework to the institution in place Percentage of performance targets achieved of SASSETA quarterly monitoring report 81% 80% achievement of targets No. of governance meetings facilitated in line with the Constitution New All Governance meetings scheduled and held in line with the constitution 7.1.2 Develop and implement Sector Skills Plan and Strategic Plan of the Seta by 2019/2020 Percentage of stakeholders who have endorsed the SSP 80% stakeholder satisfaction Strategic Plan aligned to the SSP and approved by DHET Approved MTEF strategic plan by DHET 7.1.3 Establish SASSETA footprint at Provincial level to improve delivery of services by 2020 No. of provincial offices or office presence established 1 3 Provincial (SASSETA regional) offices established at Kwa-Zulu Natal

Programme 4.1: Office of the Chief Executive Officer Programme Purpose: To provide strategic direction and leadership to SASSETA with regard to implementation of strategic priorities in the Sector Skills Plan and Strategic Plan and the Annual Performance Plan. Strategic Objective Performance Indicator Baseline 2015/16 Target 7.1.4 Corporate Governance framework to the institution in place Increased sustainable environment for service delivery partners through capacity-building partnerships, collaboration and agency agreements New 2 collaboration agreements with SETAs (Health and Welfare and MICT) 7.1.5 Establish partnerships with universities and TVETS No. of MOUs signed with universities 2 5 MOUs signed with universities No. of MOUs signed with TVETS 4 6 MOUs signed with TVETS

Programme 4.2: Office of the Chief Operating Officer Programme Purpose: To co-ordinate strategic planning implementation within SASSETA Strategic Objective Performance Indicator Baseline 2015/16 Target 7.2.1. Improves Strategic and Annual Performance Plans and reports as per National Treasury prescripts and reports. No. of organizational performance monitoring and reports New 4 Quarterly reports written Increased implementation of internal audit quality assurance and improvement programme Corrective action plans on AG findings and implementation monitored and reported quarterly 7.2.2 Compliance with National Treasury Budgeting and Planning Framework related time-lines Strategic business plan and Annual Performance plan approved by target date Plans presented to DHET 0n 15 Nov. 2014 for approval

Programme 4.2: Office of the Chief Operating Officer Programme Purpose: To co-ordinate strategic planning implementation within SASSETA Strategic Objective Performance Indicator Baseline 2015/16 Target 7.2.3 Transparent Contract management system established Establish the contract framework on contract management within SASSETA New Develop a contract management policy 7.2.4 Establish effective stakeholder management system Develop a stakeholder policy Establish stakeholder engagement forum 7.2.5 Establish Governance system within SASSETA Develop a tool to monitor governance for management Report on the performance of management on governance

Programme 4.2: Office of the Chief Operating Officer Programme Purpose: To co-ordinate strategic planning implementation within SASSETA Strategic Objective Performance Indicator Baseline 2015/16 Target 7.2.8 Develop, implement and review Organisational Structure Organisational structure that supports the SASSETA mandate New Implementation of the amended structure Develop a tool to monitor governance for Board functionality Report on the performance of Board on Governance 7.2.6 Ensure compliance to legal frame-work Compliance with legal requirements in line with National Treasury compliance framework New Review and implementation of the SASSETA compliance framework. 7.2.7 Develop Risk Management strategy that addresses the control environment of SASSETA by 2018/19 Reduced risk incidents at SASSETA Risk register developed Develop a Risk Strategy and Fraud Prevention Plan

Performance Indicator Programme 4.3: Finance Programme Purpose: Design and implement financial controls that ensure good financial governance and financial viability of SASSETA Strategic Objective Performance Indicator Baseline 2015/16 Target 7.3.1 Increased transparency, good governance with effective management of resources SASSETA Audit performance outcome Unqualified audit Maintenance of unqualified audit % performance compliance with the Supply Chain requirements New Establish the Supply Chain Management system framework 7.3.2 Establish and maintain appropriate asset management and Supply Chain Management systems Develop the facility management framework Establish the facility management framework 7.3.3 Effective collection of contributions levies from government department annually On time controlled levy collections Advance quarterly contributions

Programme 4.4: Corporate Services Performance Indicator Programme Purpose: To provide effective and efficient corporate human capital, integrated marketing and communication and information technology administrative support to the entity. Strategic Objective Performance Indicator Baseline 2015/16 Target 7.4.1 Implemented and reviewed Human Capital Management Strategy in the SETA by 2019/20 Approved amended Human Resource Strategy HR Strategy reviewed Implementation and assessment of the Reviewed Strategy 7.4.2 Increase implementation of an integrated ICT system Information and Communication System Strategy that effectively supports the operations and services of SASSETA. Re-engineered IT SETA System Implementation and assessment of remuneration strategy 7.4.3 Establishment of the effective marketing and communications of SASSETA Number of people receiving career guidance 10 304 15,000 people reached with career guidance 7.4.4 Establish the document management system Automated system in place Maintenance and upgrade

SASSETA PLACED UNDER ADMINISTRATION On 12 February 2015, SASSETA was placed under Administration (Government Gazette No 38466 12 February 2015). The Minister and Director General took this decision based on the performance of SASSETA, irregularities identified, and non compliance with the Skills Development Act, 1998 (Act 97, 1998) and other relevant legislation. In terms of this notice Jennifer Irish- Qhobosheane was appointed as the Administrator for a period of 12 months The powers and duties of the administrator are to: Take over as the Accounting Authority Establish the necessary chambers (with approval of Minister) Review the conditions of employment of staff Review general governance of SASSETA Suspend, institute disciplinary procedures or replace (where necessary) any official Consult widely with relevant stakeholders in order to adopt a standard constitution for SASSETA Ensure management of SASSETA funds Establish effective rules for the Body

KEY CHALLENGES & PROBLEMS FACING SASSETA Since taking office, the Administrator reviewed a number of reports on SASSETA including, the AGSA ‘s Interim Audit Findings, National GTAC Team ‘s situational analysis, the Portfolio Committee BBR and reports by DHET. Based on this, and the Administrators own analysis, the following key problem areas have been identified as needing to be addressed by the Administrator: Inadequacies in the planning and reporting processes within SASSETA (including SSP, Strategic Planning and Annual Performance Planning ) Issues regarding the overall performance of the body and ability to report on achievements Problems regarding the general governance of the body Lack of formal proper decision making processes (al well as documentation linked to this decision making) Problems in the Budget structure. Mismanagement of the Discretionary Fund and serious irregularities in a number of contracts entered into Lack of effective contract management Inadequacy of policy and procedures within the body and non adherence to those policies and procedures that exist

KEY CHALLENGES & PROBLEMS FACING SASSETA Non compliance with the PFMA and other related National Treasury requirements Lack of financial controls within the body which has resulted in serious over commitment of SASSETA by more than 264% (R300 million) A culture of lack of accountability and impunity, as well as ethical issues Irregularities in the appointment of staff within SASSETA Lack data integrity, and absence of data management Absence of Monitoring and Evaluation processes within the body Lack of understanding of the security sector Lack of risk management with the body Serious backlogs in the issuing of certificates Issues around the management of human resources Ineffective stakeholder management Serious security issues related to both physical security and information security

addressing the Problems A revision of planning processes is currently taking place and the first phase will be completed by the end of May 2015 (the SSP process may take slightly longer to complete). Based on the above proper performance policies and processes will also be in place by the end of May 2015. The Budget programme structure is also being revised, and will be completed by the end of May 2015. A role out plan is being developed to address decision making processes and procedures. The commitment register is being revised, and a number of contracts have been cancelled. A revised Discretionary Policy and processes for the awarding of Discretionary Funding is being developed, and will be completed by the end of April 2015.

addressing the Problems Irregular expenditure processes have been established, and a number of contracts are currently under investigation. Reformatting of the contracting documentation and processing is underway. A complete overhaul of all other policies and procedures is underway Financial controls and monitoring systems are being put in place. A moratorium has been placed on the appointment of all non critical posts pending an investigation into appointments & a review of the organisational design and appointment procedures. A Monitoring and Evaluation framework is being developed. (A plan will be developed and implemented linked to this framework). A review of all IT and document management processes is currently being completed.

addressing the Problems A turn around plan for the issuing of certificates has been developed and is being implemented. A effective risk plan for SASSETA is being developed. Engagements have been held with a variety of stakeholders. Procedures have also been put in place to ensure that learner and student concerns are properly addressed. A security assessment , including both the physical and information security, is being conducted. The chamber establishment is being reviewed.

CONCLUSION Given the current situation within SASSETA, an administration team has been appointed to assist the Administrators. This team includes; A financial expert A legal person A technical expert on corporate affairs A SETA expert In addition, a National Treasury GTAC team has agreed to provide assistance to the Administrator on the following areas: SCM policies and procedures Planning and monitoring Performance IT expertise

CONCLUSION It needs to be noted that during the first six weeks of the Administrators appointment, the bulk of the Administrators time was taken up dealing with crisis management due to the complete absence and collapse of processes within the body

Annual Performance Plan Portfolio Committee 2015 Questions SASSETA 2015/16 Annual Performance Plan Thank you SASSETA - your partner in skills development