1. BANKSETA Portfolio Committee on Higher Education and Training
07 June 2017

2. BANKSETA Vision and Mission
To be recognised as a centre of excellence and innovation for skills development in the broader banking and microfinance sector.
MISSION
To support transformation and people development and through partnerships to enable stakeholders to advance the national and global position of the broader banking and microfinance industry.

3. Scope of Coverage of the Banking Sector Banking
Banks under SARB Supervision
Central Bank
Inclusive Banking
Development Finance Institutes
Co-op Banks and CFI’s
Micro-Finance Institutions
The rest of the presentation focuses on only the banking sector

4. Achievements for 2016/2017 Clean Audit for 15 consecutive years
Best practice/Benchmarked Institution
26 of 32 SLA Targets Met/Exceeded
Support to SIPs: SKA and SME emerging contractor development
NSDS III ( ) Impact Assessment
Investors in People Standard

5. Impact Assessment –Unemployed NSDS III
181%
Target exceeded learnerships entered
125%
Target exceeded bursaries entered
220%
Target exceeded skills programmes entered
67%
Learnerships completed successfully
50%
Internships completed successfully
81%
Skills programmes completed successfully
64%
Training programme improved chances of employment
69%
Successful completion on Maths and Science support
84%
Further study in finance studies (post school study)

6. Impact Assessment – Employed NSDSIII
89%
Successful completion rate
67%
Improvement in career prospects
54%
Impact on increase in personal income
88%
Increase in productivity, performance, efficiency and effectiveness
66%
RPL candidates FAIS compliant
76%
RPL learners reported changes in careers
86%
RPL learners experienced improvements in their roles

7. Impact Assessment – SME Development NSDS III
88%
Noted improvement in turnover
72%
Noted small business interventions had led to an improvement in employment opportunities created by their business which resulted in an increase in staff members
97%
Reported training had improved their operational efficiency and effectiveness
89%
Reported training assisted them to grow their client base and network
86%
Reported business growth
96%
Reported improved rate of client satisfaction

8. Transformation Agenda
BANKSETA initiatives: IEDP, M&E, CMD, pipeline. 85%, 54%, 4% in all other interventions
Source: BASA: By 2015, there were roughly 800 more black senior managers compared with 2012; more black middle managers and more black junior managers.

9. SP/APP Technical Data

10. Input into Strategic Planning Process
NSDS III Framework
National Treasury Guideline on the Development of the SP and APP
Sector Skills Needs (scarce occupations and critical skills)
National Priorities: NDP, SIPs, 9 point plan; SONA 2016
Sectoral Priorities: FSC, Basel III, FIS, SRF, NCA
Drivers of Change: 4Th Industrial Revolution
BANKSETA Organisational Efficiency Framework
FSC- Financial Services Code
FIS – Financial Inclusion Strategy
SRF - SARB Regulatory Framework
NCA – National Credit Act

11. Strategy Goals and Objectives
Goal 1: Administrative efficiency and effectiveness
SO 1.1 :Implement efficient resource planning for human resources, information and communication technology and marketing and communications to support the disbursement of mandatory and discretionary grants.
SO 1.2 : Apply sound financial management in line with the PFMA requirements resulting in an unqualified clean audit
SO 1.3 : Ensure compliance with all regulatory requirements and adherence to the King IV governance requirements and all public institutional mandate.

12. Strategy Goals and Objectives
Goal 2: Establish a credible skills planning mechanism (including research and benchmarking) for the Banking Sector
SO 2.1 :Research Reports are developed for all commissioned and in-house research (as detailed in the approved research agenda) and are accessible to stakeholders on the BANKSETA Knowledge Bank Portal.
SO 2.2 : The Banking Sector Skills Plans meet the requirements of DHET and provides a sound analysis of the sector and articulate an agreed sector strategy to address skills demand with an appropriate and relevant supply pipeline.
SO 2.3 :Employers submit their WSP/ATR that meet all compliance requirements for the payment of mandatory grants

13. Strategy Goals and Objectives
Build sectoral skills development capacity for the employed workforce and to enhance the employability of unemployed youth creating a skilled pipeline
SO 3.1: Provide appropriate interventions for workers by encouraging better use of workplace based skills programmes
SO Increase access to occupationally directed programmes for unemployed youth through a range of workplace experiential training interventions, including TVET College, University of Technology and University students
SO 3.3 Implement a range of capacity building interventions to support the growth of a public TVET College system with specific reference to Lecturer Capacity Building

14. Strategy Goals and Objectives
Build sectoral skills development capacity for the employed workforce and to enhance the employability of unemployed youth creating a skilled pipeline
SO 3.4 Improve the quality of secondary schooling learning through interventions that address the low level of youth language and numeracy skills
SO3.5 Provide training and development support to Co-ops, SMEs, NGOs etc. in an effort to contribute to economic and employment growth and their impact measured and reported on.
SO3.6 Ensure accessible career and vocational guidance within the banking sector.
SO Support training interventions to address rural development

15. Strategy Goals and Objectives
Goal 4: Quality management of occupational based qualifications
SO 4.1 Develop and register specific occupation based qualification in partnership with the QCTO in line with the needs of the sector
SO 4.2 Quality assure the delivery and assessment interventions of accredited training providers who fall within the scope of the BANKSETA culminating in the timeous issuing of certification of competence

16. Annual Performance Plan 2017/2018
Programme 1: Administration
Programme 2: Skills Planning
Programme 3: Learning Programmes
Programme 4: Quality Assurance

17. Programme 1: Administration
Sub Programme 1.1: Corporate Services
Ensure the organisation has the appropriate human resources skill to deliver on the activities required to achieve its mandate.
Ensure that the IT system provide for the management of data.
Ensure a clear communications plan so that all stakeholders participate in SETA processes and are kept informed of all activities

18. Programme 1: Administration
Sub Programme 1.2: Finance
Ensure all accounting processes align to the requirements of the PFMA, that the organisation meets all Treasury requirements for cost saving, that there is no fruitless, wasteful or irregular expenditure and that the organisation is fully compliant with treasury and accounting practices and principles
Sub Programme 1.3: Governance
Ensure that the organisation complies with all regulatory and governance requirements as laid down by the various authorities and that the organisation aligns its governance protocols to King IV

19. Programme 2: Skills Planning Sub Programme 2
Programme 2: Skills Planning Sub Programme 2.1: Research Agenda 2017/18
Future skills needs: Fourth Industrial Revolution
TVET and HE Challenges: Skills supply to the banking sector
Public Sector Financial Intermediaries: Support to improve financial intermediation services
Co-operative Financial Institutions: Barriers to sustainability, growth and development

20. Programme 2: Skills Planning
Sub Programme 2.1: Sector Skills Plan
BANKSETA must develop a Sector Skills Plan in line with DHET guidelines by 1 August 2017 for approval
Sub Programme 2.2: Workplace Skills Planning
Encourage and assist employers to participate in the skills planning process to maintain a 96% mandatory grant pay-out rate

21. Programme 3: Learning Programmes
Development for the unemployed youth
Skills Development for the employed
Capacity building of public training institutions (TVET and HEIs)
SME Support

22. Programme3: Sub-programmes 3.1 to 3.22
Development for the unemployed youth
Capacity building of public training institutions
SME Support
Skills development for the employed
Kuyasa Learnership
TVET WIL
SME Funding
IEDP
Letsema Learnership
UoT WIL
Entrepreneurship
Pivotal Grant: Employed
Learnership funding
Higher Education Bursaries
CFI Support
Re-skilling of Employees
Work Readiness
NSFAS Support
Rural Development
Info Technology
Work-based experience
PhD and Post-doctoral
People with disabilities
Maths & Science Support
PIVOTAL Grant: Unemployed
Career awareness
TOTAL Beneficiaries

23. Programme 3: Scarce and critical skills
Statistician
Actuary
Management Accountant
Chief Information Officer
Compliance Officer
Investment Manager
ICT Systems Analyst
ICT Project Manager
Software Developer
Application Development Manager
Developer Programmer
Assessment Practitioner
Database Designer and Administrator
ICT Business Development Manager
ICT Security Specialist
Computer Network and Systems Engineer
Programmer Analyst

24. Programme 3: Discretionary Grant Split 2017-2018
In line with the SETA Grant Regulations, research and skills planning is
funded from the SETA Administration Budget (R8m)

25. Programme 4: Quality Assurance
Sub Programme 4.1: Quality Management of Training Provision
Developing and implementation of new and existing occupational qualifications
Sub Programme 4.2: Quality Management of Legacy Qualifications
Accreditation of providers, registration of assessors, moderation of assessments and certification of learners against legacy qualifications

26. SP/APP Monitoring and Evaluation Framework
Goal 1: Administrative efficiency and effectiveness
Human Resources complement as per the organogram is achieved
Information and communications technology operates optimally with minimum disruptions and downtime.
Clear and timeous communication with all stakeholders
No fruitless and wasteful expenditure
Full compliance to the requirements of the PFMA
Supply chain management meets full compliance requirements
Compliance to all regulatory requirements as per treasury requirements
Compliance to all DHET requirements
Adherence to King IV governance requirements

27. SP/APP Monitoring and Evaluation Framework
Goal 2: Establish a credible skills planning mechanism for the Banking Sector
SSP 2017/2018 is developed in line with DHET timelines and approved by Council
Sector scarce occupations and critical skills gaps list is developed
PIVOTAL List is developed
Employers submit their WSP/ATR timeously
Research Reports are produced for all research undertaken as per the approved Research Agenda
Research is available to all stakeholders especially public training institutions as a reference tool
Stakeholder participation in skills planning is increased

28. SP/APP Monitoring and Evaluation Framework: Goal 3 – Learning Programmes
Employed Learners
Achievement against scarce and critical skills
Achievement against transformation objectives
Increased productivity and performance of beneficiaries
Job promotions for participants
Unemployed Learners
Learners find employment
Increased personal income for learners
Successful learners progress onto next level of training
Better pool to source new recruits from

29. SP/APP Monitoring and Evaluation Framework: Goal 3 – Learning Programmes
Maths and Science
Better grades are achieved by beneficiaries
Beneficiaries enter university programmes within the scope of the financial sector
SME Development
Increased number of new businesses in the sector
Increased profit levels for existing business
Increased employment creation by existing and new business
Improve operational efficiency of employees who undergo training
Career Guidance
Information in the career guide is current and relevant
Workshops held with Life Orientation Teachers

30. Public HE Institutions
SP/APP Monitoring and Evaluation Framework: Goal 3 – Learning Programmes
Public HE Institutions
Increased number of public providers accredited for BANKSETA programmes
Increased graduation rates of learners who participate in BANKSETA funded programmes
Rural Programmes
Increased number of rural beneficiaries participate in programmes
Increased access for rural support via regional offices

31. SP/APP Monitoring and Evaluation Framework
Goal 4: Quality management of occupational based qualifications
Increased number of occupation based qualifications developed
Learning materials for selected qualifications are developed and made available for public use
Increased number of public training providers accredited as secondary providers; VET, UoTs and Universities
Effective and efficient external moderation process is implemented
Timeous issuance of certificates of competence to qualifying learners
A reliable database of providers, assessors, moderators and learners established and maintained.

32. Key Partnerships
Banking Association of South Africa: Fourth Industrial Revolution impact on banking and Centre of Excellence as announced by the President in 2016/17
Department of Defence/CSIR/SABRIC: Development of a Cybersecurity Skills Map
Financial Services Board: Financial Inclusion Mandate
Microfinance South Africa: Support for the Micro-finance sector
Co-operative Banks Development Agency: Support for the co-operative financial sector
Higher Education Institutions: Development/Capacity building support, Bursaries and WIL
Institute of Bankers: Assessment Quality Partner for Occupational Qualifications

33. Challenges for the Sector
Economic Uncertainty: Downgrades
Cyber-attacks
Financial Inclusion
Rural Development
Digital Disruptors
Impact of poor matric results in maths and technology
Employment of people with disabilities
Transformation at Executive Management and Board Levels
IEDP programmes
Disability targets in discretionary grant funding windows
Increase in targets for rural development programmes
Cyber security skills map

34. Financial Data

35. Funding Model

36. Expenditure Categories per Legislation

37. Financial Performance
Actual
5 Years
Budget
Rand millions
Clean
Audit
Totals
Unqualified
Ongoing
Revenue
Levy income
575
568
599
693
689
3,124
737
Investment Income 18 20 28 39 46
150 30
Donations 31 21 16 - 69
All other 15 4 38 56
Total revenue
639
612
680
732
735
3,399
767
Expenditure
Mandatory grants
351
188
134
163
151
987
179
Discretionery grants and projects
152
235
336
423
506
1,653
492
FET College Contribution 65
Admin expenditure 48 62
276 97
Finance expenditure/DG Surrender 2 6 1 9
Total Expenditure
549
539
532
649
722
2,991
Net Surplus 90 74
149 83 13
408

38. Levies vs Expenditure

39. Statement of Financial Position
Year ended 31 March
2011
2012
2013
2014
2015
2016
2017
2018
Rand millions
Actual
Budget
Assets
Non Current Assets - PPE 1 2 3
Accounts receivable 11 9 19 5 20
Cash and Cash equivalents
152
268
471
464
565
580
621
Total Assets
155
280
482
469
586
588
633
603
Liabilities
Non current liabilities - FET - 28
Trade and other payables 83
117
237
121
122 38 68 40
Provisions 6 22
Donor Funding received in advance 27 17
Total liabilities 89
145
257
170
141 58 90 60
Net Assets 66
135
225
299
445
530
543
Funds and Reserves
Commitments 96
124
285
689
423
509
410
516
Commitments %
145%
92%
127%
231%
95%
96%
76%

40. Commitments as a %age of Cash
Cash vs Commitments
2013
2014
2015
2016
2017
Budget 2018
Commitments as a %age of Cash
60%
148%
75%
88%
66%
89%

41. THANK YOU