Annual Report Briefing Select committee on Education and Recreation 26 November 2014, South African Parliament Cape Town

Outline Introduction CATHSETA Background / Overview Legislative Mandates CATHSSETA Strategic Direction Learning Programmes Financial Performance Human Resources Governance Way Forward Questions

Core Mandate of CATHSSETA The Purpose of the CATHSSETA is to contribute to South African Economy through the facilitation of skills development in the relevant Sub-Sectors. CATHSSETA is broken into six (6) sub-sectors namely; Culture, Arts & heritage Tourism and Travel services Hospitality Sport, Recreation and Fitness Conservation Gaming and Lotteries

Legislative Mandates South African Constitution Skills Development Act of 1998; South African Qualifications Authority Act of 1995; Education and Training Quality Assurance Bodies Regulation of 1998; Skills Development Levies Act of 1999; Learnership Regulations of 2006; National Qualifications Framework Act of 2008; Public Finance Management Act New Grant Regulation effective from 1 April 2013.

Overview/Background of the 21013/14 ARP CATHSSETA has been facing challenges of consistently not meeting its predetermined objectives. There’s been serious allegations made against some Board members and CEO The Board commissioned Grant Thornton to investigate the allegations and make recommendations The Board couldn’t act on the findings due to their differences The Minister instructed the Board to resolve the challenges The infighting within the Board affected the performance of the organization wherein the targets were not met on a quarterly basis. For the FY 2013/14, CATHSSETA received a qualified Audit with matters of emphasis Due to disfunctionality, the Minister instructed the DG to put the SETA under administration An Administrator was appointed on the 16 th October to take over as the Accounting Authority for CATHSSETA

Overview (continued) Summary: Highest employed are in the hospitality and lowest Arts, Culture, and Heritage Distribution of Employees Per Sub-Sector

CATHSSETA Strategic Direction Vision: Sustainable People Development for Prosperity Values: Service Excellence; Efficiency; Equity; Integrity; Partnership; Quality; and Accessibility Mission: To facilitate the skills development of our people through creating strategic partnerships to ensure a meaningful contribution to the economic growth within our sector Strategic Objectives 1.Establishing A Credible Institution Mechanism For Skills Planning 2.Increasing Access To Occupationally Directed Programmes 3.Promoting The Growth Of Public Fet College System That Is Responsive To Sector, Local, Regional & National Skills Needs & Priorities 4.Addressing the Low Level Of Youth & Adult Language & Numeracy Skills To Enable Additional Training 5.Encourage Better Use Of Workplace-based Skills Development 6.Encouraging And Supporting Cooperatives, Small Enterprises, Worker Initiated, NGO & Community Training Initiatives 7.Increasing Public Sector Capacity For Improved Service Delivery And Supporting The Building Of A Developmental State 8.Building Career & Vocational Guidance

Priority Scarce and Critical Skills Hotel Manager Restaurant Manager Sport facility Manager Small Business Manager Park Ranger Conservation Scientist Sound Technician Chef Sports Official Cook

Learning Programmes

These are programmes that lead to a Qualification Learnerships Internships Academic learning programmes Skills programmes (short courses) Learnerships & Internships are the core mandates as they interact workplace experience

Number Certificated by Province Comments Highest in Western Cape Lowest in Northern Cape

Learner Equity DimensionNumber CertificatedPercentages Black: African % Black: Coloured930 10% Black: Indian / Asian253 3% Unspecified138 2% White %

Assessor and Moderator Registration DimensionNew / ReceivedApproved / Registered Programme Assessor Moderator50 60

Bursaries Awarded by Province Comments Highest in Western Cape Lowest in Northern Cape Unknown Limpopo

Discretionary Fund expenditure by Province ProvinceTotal Number of Learners Total amount Eastern Cape 187 R Free State 219 R Gauteng 370 R Kwazulu Natal 991 R Limpopo 124 R Mpumalanga 32 R North West 198 R Northern Cape 7 R Western Cape 500 R

STATEMENT OF FINANCIAL PERFORMANCE (ANNUAL REPORT P 170) R’000 REVENUEFY 2013/14FY 2012/13FY 2011/12% change Skills Development Levy Income % Penalties & interest % Donor Income Investment Income % Other TOTAL REVENUE EXPENSES Mandatory Grants % Discretionary Projects % Donor Expenses Admin % Other681 TOTAL EXPENSES Surplus

Administrators Observations Divided organization with high levels of mistrust amongst employees High levels of pending disciplinary hearings Contracts awarded without following procurement procedures especially unsolicited bids Contracts awarded to non accredited providers and compliance being facilitated expost facto Award of international outside of the policy Broken relationships between AGSA, Internal Auditors and management No implementation plan for AGSA recommendations Qualified Audit opinion by AGSA

What has been Done by the Administrator Meeting management for a briefing Meeting with AGSA & Internal Audit for a briefing Follow up on AGSA findings and develop a plan to ratify identified weaknesses Assessment of CATHSSETA’s financial position Precautionary suspension of the CEO &CFO Completion of outstanding investigations Stabilizing the organization – Address staff uncertainties & communicate change – Review plans, budgets and targets for current FY – Review strategy & APP for 2015/16 FY – Weekly management meetings and monthly staff meetings – Engagement of Stakeholders in Gauteng, Durban and Cape Town – Rationalization of functions to ensure integration and improve performance – Finalize Window 2 Discretionary grants allocations

What’s the Plan until Financial Year end Engagement of TVETs to strengthen partnership and assess capacity for training Sign MOUs with TVETs and workplaces for training and placement of learners Bimonthly engagement of stakeholders Establish joint working committes across sectors Finalize plans for 2015/16 FY Develop and implement systems to address AGSA findings

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