Annual Report Moving Forward - Theme for this year’s annual report Successful STANDISATION played a significant role in improving the results of the core business And still the organisation remains committed to being a body that looks after the public’s interest QCTO presentation to Portfolio Committee10 Oct

Organisation’s Mandate National Qualifications Framework Act, in essence stipulates the development and management of the Occupational Qualifications Sub-framework Skills Development Act, in essence stipulates: Design and develop occupational standards and qualifications Establish and maintain occupational standards and qualifications Ensure the quality of occupational standards and qualifications Promote the objectives of the National Qualifications Framework NB:SDA provided for the establishment of QCTO which became operational 1 April 2010, w/ permanent CEO employed 1 April 2012 QCTO presentation to Portfolio Committee10 Oct

2012/2013 Achievements Human Resources Key Senior Management appointments made resulting in the ability to establish the Management Committee (team that reports directly to the CEO) Issues surrounding the 12 staff seconded to the QCTO resolved Governance Qualifications, Assessment and Accreditation and Audit & Risk Committees fully operational, thus all committees of Council established QCTO Presentation to the Portfolio Committee 10 Oct

2012/2013 Achievements Core Operations Standardisation of processes vastly improving operations Standardised processes documented and communicated to relevant partners Provider accreditation system in place Finance Unqualified Audit QCTO presentation to Portfolio Committee 10 October

Predetermined Objectives For programme 1 (administration) key objectives were to establish the QCTO as an independent organisation The organisation in this formative state achieved as follows: Met all compliance due dates Financial policy development Drafted SCM, HR management and ICT plan to act independently of the DHET QCTO presentation to Portfolio Committee 10 October

Predetermined Objectives Achievements for Programme 2 (qualifications management) included: Meeting the target for policy development Exceeding the target for completion of guidelines for implementing policies Exceeding the number of applications in the development process Exceeding the target set for the number of historically registered qualifications managed QCTO presentation to Portfolio Committee 10 October

Predetermined Objectives Important areas of under achievement for programme 2 included: Number of qualifications developed and recommended to SAQATarget 60Actual 1 Number of AQP assessment systems evaluated to be valid and reliableTarget 15Actual 10 Verification and Certification system developed—Not achieved Number of Foundational Learning Competency learners assessed--Target Actual 366 QCTO presentation to Portfolio Committee 10 October

2012/2013 Annual Report Challenges Insufficient Office Space Full Reliance on the DHET Policies Majority of Staff Completely New to the Operations Stakeholders Unaware of the QCTO Role and its work Concerned About Funding QCTO presentation to Portfolio Committee 10 October

2012/2013 Annual Report FINANCIAL RESULTS Statement of Financial Performance QCTO presentation to Portfolio Committee 10 October /13 R’ /12 R’000 REVENUE State Contributions20,35218,387 Finance Income TOTAL REVENUE21,18918,510 Compensation(9,184)(5,279) Other Expenses(6,651)(5,445) NET SURPLUS FOR THE YEAR5,3547,786

2012/2013 Annual Report FINANCIAL RESULTS Budget Against Actuals QCTO presentation to Portfolio Committee 10 October Budget R’000 Actuals R’000 (Under)/Over CLASSIFICATION Employee Costs13,7499,184(4,565) Goods and Services13,0606,651(6,409) Capital Expenditure1,400756(644) TOTAL28,20916,591(11, 618)

2012/2013 Annual Report AUDIT OUTCOMES 2 Years of Unqualified Audit Opinion (since inception) Findings: Achievement of planned Targets Adjustments to the Annual Performance Information Adjustments to the Annual Financial Statements Irregular Expenditure Standard Policies and Procedures on Performance Information Lack of an accrual accounting systems QCTO presentation to Portfolio Committee 10 October

2012/2013 Annual Report AUDIT OUTCOMES QCTO presentation to Portfolio Committee 10 October #FINDINGROOT CAUSESREMEDIAL ACTIONS 1.53% Targets not Achieved Capacity ConstraintsPositions in the approved structure are being filled 2.Material adjustments in the Annual Performance Report Inadequate Quality Assurance processes Due Diligence on reported information enhanced 3.Material Adjustments in the Annual Financial Statements Dependence/Reliance on the Department’s systems Corrected. At the time of the audit processes were already at an advanced stage for QCTO to wean from financial DHET systems

2012/2013 Annual Report AUDIT OUTCOMES QCTO presentation to Portfolio Committee 10 October #FINDINGROOT CAUSESREMEDIAL ACTIONS 4.Irregular Expenditure Due to capacity constraints QCTO utilised DHET contract as per provision of TR Corrected. QCTO has own SCM policy and personnel. 6.Standard Operating Policies Capacity ConstraintsPolicy and Procedures on Performance Information being developed 7.Lack of Accrual Accounting System Capacity ConstraintsAccrual accounting systems is being developed. To be operational as from 1 November 2013