SASSETA Annual Report presentation to the Portfolio Committee SASSETA - your partner in skills development

Registered legal firms SASSETA - your partner in skills development annual report 2012 There are a total of registered legal firms in South Africa. The Law Society of the Northern Provinces – Gauteng, Mpumalanga, North-West and Limpopo has the largest number of legal firms. The second largest number of firms are part of the Cape Law Society which consists of the Western, Eastern and Northern Cape.

Registered security businesses SASSETA - your partner in skills development annual report 2012 There are a total of security service providers in new security service providers were registered in This represents a 18% increase from 2010 to The growth rate remains consistent with a 17% increase from 2009 to 2010

Police stations SASSETA - your partner in skills development annual report 2012

SASSETA - your partner in skills development annual report 2012 Correctional Services centres There are currently 241 correctional services centres 2 out of the 241 correctional services centres are private prisons: 1.Mangaung Maximum Security Private Prison 2.Kutama Sinthumule Maximum Security Prison

Magistrates Courts Total 381 Source: Department of Justice

Provincial offices Total 142 Source: Road Traffic Management Corporation (As at Feb 2011)

Goal 4.2: Increasing access to occupationally-directed programmes EMPLOYED LEARNERS 2011/12 Variance TargetPerformance Workers to enter learnerships2,176494(1,682) Workers to enter internships--- Workers to receive bursaries224-(224) Workers to enter skills programmes3,7542,788(966) Workers certificated on learnerships1,088306(782) Workers on internship certificated--- Workers on bursaries certificated112-(112) Workers on skills programmes certificated1, (704) Outcome Middle level skills needs are identified and addressed in all sectors

Goal 4.2 : Increasing access to occupationally-directed programmes (continued) CHALLENGES: The underachievement was because of the late implementation of projects due to changes in the SETA environment. The late establishment of the boards and chambers resulted in projects being suspended until the governance structures were in place. REMEDIAL STRATEGIES: Alignment of implementation of projects to the Government Planning Cycle. SASSETA - your partner in skills development

Goal 4.2: (continued) Increasing access to occupationally-directed programmes UNEMPLOYED LEARNERS 2011/12 VARIANCE TARGETPERFORMANCE Learners to enter learnerships Learners to enter internships200-(200) Learners to receive bursaries9917(82) Learners to enter skills programmes-1,531 Learners certificated on learnerships321,0691,038 Learners on internship certificated100-(100) Learners on bursaries certificated50-(50) Learners on skills programmes certificated--- Outcome Middle level skills needs are identified and addressed in all sectors

CHALLENGES There were many self-funded learnerships embarked on by the Private Security firms. The demand for this qualification was there and despite us not funding, employers went ahead and funded the implementation of the programme. Also, some projects which commenced the previous financial year were only completed within the current reporting period. REMEDIAL ACTION The monitoring and evaluation policy has been developed for tracking our learners Goal 4.2 (continued) Increasing access to occupationally-directed programmes SASSETA - your partner in skills development

Outcome ,000 artisans per year qualify with relevant skills and find employment Goal 4.2 (continued) Increasing access to occupationally-directed programmes SASSETA - your partner in skills development ARTISANS 2011/12 VARIANCE TARGETPERFORMANCE Artisan workers entered225-(225) Artisan workers certificated113-(113) Artisan unemployed entered200-(200) Artisan unemployed certificated100-(100) CHALLENGES: This target could not be achieved because of the late approval of projects and signing of contracts. Employers also preferred to deal directly with the Primary SETAs for specific qualifications (MERSETA, ransport SETA). The first group of artisan learners reported on will complete their 3 year programmes in 2013/14. REMEDIAL ACTION Implementation of the annual planning cycle

Outcome Partnerships between DHET, SETAs, employers, private providers and public FET colleges are resulting in increased capacity to meet industry needs throughout the country. Goal 4.3: Promoting the growth of a public FET college system that is responsive to sector, local, regional and national skills needs and priorities GOALS/OUTCOMES/2011/12 VARIANCEBUDGETACTUAL OUTPUTSTARGETPERFORMAN CE FET college partnerships00000 CHALLENGES: We took the initiative to liaise with the different FET Colleges and Universities. The following have been met and draft MOUs developed pending their signatures: Ehlanzeni, Gert Sibande, Nkangala and MRTT in Mpumalanga. REMEDIAL ACTION 3 Partnership Agreements have been concluded already Agreement in place to open an office at Ethekwini FET College

Outcome 4.4.1: A national strategy is in place to provide all young people leaving school with an opportunity to engage in training or work experience, and improve their employability. Goal 4.4: Addressing the low level of youth and adult language and numeracy skills to enable additional training SASSETA - your partner in skills development GOALS/OUTCOMES/2011/12 VARIANCE OUTPUTSTARGETPERFORMANCE Young learners receiving work experiencing. 250 (25) Young learners received placement.130 (13) CHALLENGES: The target could not be reached due to late start of the projects. REMEDIAL ACTION Implementation of the Annual Planning Cycle

Outcome 4.6.1: Cooperatives supported with skills training and development expands and contributes to sector economic and employment growth. Goal 4.6 Encouraging and supporting cooperatives, small enterprises, worker-initiated, NGO and community training initiatives. SASSETA - your partner in skills development NOGOALS/OUTCOMES/2011/12 VARIANCE OUTPUTSTARGETPERFOR- MANCE Cooperatives supported with skills training Small businesses supported with skills development NGO’s supported.80(8) CBO’s supported.40(4) CBC’s supported.000 CHALLENGES: The projects will be implemented during the next financial year due to SETA establishment challenges. In 2011/12 there was a transition from NSDS II to NSDS III and at the time of the submission of the budget, it was not clear what would be contained in the NSDS III REMEDIAL ACTIONS Implementation of Annual Planning Cycle

Outcome Career paths are mapped to qualifications in all sectors and sub- sectors, and communicated effectively, contributing to improved relevance of training and greater mobility and progression Goal 4.8 Building career and vocational guidance GOALS/OUTCOMES/ 2011/12 VARIANCEBUDGETACTUAL OUTPUTS TARGETPERFORMANC E Career guidance initiatives CHALLENGES: No target for the financial year in question. REMEDIAL ACTION Target addressed in the 2012/13 APP SASSETA - your partner in skills development

annual report 2012 Financials DescriptionActual R’000Budget R’000 Revenue Skills Development Revenue252,597204,287 Other12,1806,887 Total Revenue259,484216,467 Expenses Employer Grants and Project Expenses(150,337)(143,339) Administration Expenses(64,719)(73,128) Total Expenses(215,056)(216,467) Surplus44,428-

SASSETA - your partner in skills development annual report 2012 AUDITOR GENERAL FINDINGS AND REMEDIAL PLANS Qualified Audit Opinion - for the first time. Management Letter Action Plan to address all audit findings by the Auditor General. Plan consulted with Audit & Risk Committee, AG & Board to ensure that it addresses the root causes. Strengthening of the internal control environment. Risk analysis (Risk Register) of the organisation done and risk response formulated Audit & Risk Committee and EXCO to monitor closely the mitigation of risks and Management Letter Action Plan.

SASSETA - your partner in skills development annual report 2012 Major AG Findings and Progress Major FindingHigh LeveL Action PlanProgress There are no controls in place over the planning, implementation and the reporting of performance information. design and implement system that will ensure proper record keeping, accurate and complete recording of information, review and monitoring of financial information. Re-organise our filing system. Nominate an Implementation Team across departments. Review the records management policy. Develop an SOP. Currently undertaking the overhauling of our filing system project as it involves all Departments. An SOP has been developed and implemented. Records management policy has been reviewed and its in the approval structures.

SASSETA - your partner in skills development annual report 2012 Major AG Findings and Progress (continued) Major FindingHigh LeveL Action PlanProgress Mandatory and Discretionary grants reconciliations not performed. Perform monthly recons of Project Expenditure. Perform quarterly recons of Mandatory Grants expenditure. Monthly recons of Project Expenditure are being performed and addressing challenges that are there. Quarterly recons of Mandatory Grants expenditure are being performed.

SASSETA - your partner in skills development annual report 2012 Major AG Findings and Progress (continued) Major FindingHigh LeveL Action PlanProgress There are no proper controls in place to ensure that the information used in the reporting of performance information is valid. design and implement system that will ensure proper record keeping, accurate and complete recording of information, review and monitoring of financial information. Re-organise our filing system. Nominate an Implementation Team across departments. Review the records management policy. Develop an SOP. Currently undertaking the overhauling of our filing system project as it involves all Departments. An SOP has been developed and implemented. Records management policy has been reviewed and its in the approval structures.

SASSETA - your partner in skills development annual report 2012 Major AG Findings and Progress (continued) Major FindingHigh Level Action PlanProgress Supply Chain Management weaknesses that resulted in Irregular Expenditure. Review the Delegation of Authority between CEO and Board. SCM Database to be reviewed. Review structure of the SCM. Training of SCM officials. Database of suppliers revamped to be broader. Structure of SCM has been reviewed. SCM Checklists and SOP’s have been developed.

SASSETA - your partner in skills development Thank you