Download presentation
Presentation is loading. Please wait.
1
By Administrator: P. Kedama (Mr)
Annual Report Presentation to the Portfolio Committee: Higher Education and Training By Administrator: P. Kedama (Mr) 2nd November 2016
2
Outline of the presentation
Introductory remarks – Administrator Presentation of Annual Performance Information – Senior Manager Skills Development Ms Keitumetse Pebane Presentation of the Annual Financial Statement – CFO Mr Malusi Shezi Concluding Remarks - Administrator
3
Context of Cathsseta under Administration and Progress Made
Familiarisation Building Phase Stabilization Change Management Sustainability Stage Administrator Appointed Roadshows & Stakeholder Engagements New Organisational Structure implemented Completed Review of the Constitution & Policies finalized CEO & AA Appointment Skills Audit Skills alignment to job requirements Stakeholder Engagements Unqualified Audit Opinion with matters of emphasis obtained Completion of disciplinary & litigation matters Training & development of staff Clean Audit Report Appointed COO Oct 2014 Oct 2015 Oct 2016 Timeframes
4
Improving Performance and Operational Management
Improvement of Grant Administration Streamlined administration of DG from tranche to performance based payment system Improved alignment of windows with academic year (commenced with bursaries) Introduced independent and transparent grant disbursement system Introduced the web-based electronic DG application system Partnership and Stakeholder Orientation Spent R36m to create 809 and 300 placement opportunities for TVET and university graduates, respectively Partnered with NDT on National Tourism Career Expo (NTCE) and on skill audit
5
Improvement in Organisational Performance
CATHSSETA achieved steady improvement in performance to targets from 34% to 70% between 2013/14 and 2015/6 financial years DHET acknowledges that quality of the Sector Skills Plan improved significantly The quality of the Strategic Plan and Annual Performance Plan also improved The integrity of our Performance Information improved significantly Improved management of CATHSSETA finance and internal controls As a result obtained clean audit report for 2015/16 financial year Partnered with HSRC to conduct labour market study (skills assessment) for 3 subsectors sectors: Arts Culture and Heritage, Gaming and Lotteries and Sports, Recreation and Fitness CATHSSETA recruited 24 interns; 13 absorbed; 5 left; 5 employed and only 3 not placed
6
Organisational Development
Organisational Restructuring CATHSSETA completed the realignment of its structure to the 2014/5 revised strategy Currently 87% of the positions in the new structure are filled Introduced performance reward system as part of a culture to reward excellence and innovation (to be extended to Services Providers) Regional Offices 6 Regional Offices covering all 9 provinces were established and are already functional 5 offices established in TVET Colleges in line with the Post School Education and Training White Paper Regional offices will improve stakeholders access and promote effective delivery of our services
7
Performance Report
8
Summary Performance in FY 2015/16
Percentile Number of KPIs KPIs Achieved +100% 13 100% 38 75% - 99% 6 50% - 74% 7 0% - 49% 11 Achievement is 80% thus 20% not 100% achieved. Use examples to illustrate.
9
2015/16 Achievement per programme
# KPIs achieved % Achievement Programme 1: Administration 25 15 60% Programme 2: Governance 8 6 75% Programme 3: Planning 100% Programme 4: Learning Programmes 34 22 65% Prog 1 – Administration: What was not achieved and why? Prog 2 – Governance: What was not achieved and why? Prog 4 – Learning Programmes: What was not achieved and why? The sync between the Financial and Academic years. Tracking of completion and issuing of certificates. Employed learners drop out on getting better jobs.
10
Learnerships No Performance Indicator Planned Target 2015/2016 Actual
Achievement 2015/2016 % 1 Employed learners entering LEARNERSHIP programmes 200 198 99% 2 Employed learners completing LEARNERSHIP programmes 100 399 399% 3 Unemployed Learners entering LEARNERSHIP programmes 400 690 173% 4 Unemployed Learners completing LEARNERSHIP programmes 300 150% SETA and Industry-funded targets combined
11
Artisans & Internships
No Performance Indicator Planned Target 2015/2016 Actual Achievement 2015/2016 % 1 Number of ARTISANS entering training programmes 100 100% 2 Number of ARTISANS completing training programmes 50 89 178% 3 Number of unemployed Learners entering WORK EXPERIENCE / INTERNSHIP programmes 320 4 Number of unemployed Learners completing WORK EXPERIENCE / INTERNSHIP programmes 260 126 48%
12
Performance Indicator Number of Learners entering BURSARY programmes
Bursaries No Performance Indicator Planned Target 2015/2016 Actual Achievement 2015/2016 % 1 Number of Learners entering BURSARY programmes 350 498 142% 2 Number of Learners completing BURSARY programmes (employed and unemployed) 175 133 76%
13
Skills Programmes No Performance Indicator Planned Target 2015/2016
Actual Achievement 2015/2016 % 1 Number of Learners entering SKILLS programmes 1500 5551 370% 2 Number of Learners completing SKILLS programmes 750 1545 206%
14
TVET Graduates No Performance Indicator Planned Target 2014/2015
Actual Achievement 2014/2015 Planned Target 2015/2016 2015/2016 % 1 Number of Learners entering TVET COLLEGE programmes 1000 1082 1200 804 67%
15
Reasons for Variance Strategic/Special Project contribution to increased delivery Projects reported in the year completed
16
Provincial Distribution for 15/16 Work Integrated Learning
Province/Programme Bursary Learnership Internships Skills Programme Work Integrated Learning Total Gauteng 95 183 221 136 271 906 Western Cape 53 89 73 90 165 470 KwaZulu Natal 69 121 5 133 328 Limpopo 38 124 40 93 295 Free State 11 10 20 71 112 North West 27 3 18 43 131 Eastern Cape 36 108 6 70 127 347 Mpumalanga 24 45 26 19 114 Northern Cape 353 703 323 422 922 3 023
17
Reasons for Variance Uneven distribution of service providers and training providers Migration from “rural” to “urban” provinces Learner dropouts Learner throughput from TVET Colleges Low intake on TVET Colleges’ programmes Participation by employers in smaller regions
18
Provincial Targets for 2016/17 Work Integrated Learning
Province/Programme Bursary Learnership Internships Skills Programme Work Integrated Learning Total Gauteng 30 126 45 56 150 407 Western Cape 125 70 420 KwaZulu Natal 42 392 Limpopo 60 124 90 252 676 Free State 175 75 196 225 761 North West 280 734 Eastern Cape 120 200 135 168 300 923 Mpumalanga 680 Northern Cape 105 140 504 600 1247 750 1400 1500 5497
19
Regional Offices Region TVET College Town Located Manager FS and NC
Motheo Bloemfontein Ms Makhotso Seekoei EC Lovedale Kings Williams Town Ms Nelisa Pambo GP and NW CATHSSETA Killarney Ms Sharon Mukhola WC Northlink Tygerberg – Cape Town Ms Martha Collett KZN EThekwini Durban Ms Zandile Ntshangase LP and MP Capricorn Polokwane Ms Phamela Khosa
20
Servicing Training Providers
Requirement New / Received/ Additional Evidence submitted Approved / Registered Reasons for deviation Accreditation (Training Provider) 52 applications were received 17 providers were accredited A number of providers did not proceed to Phase B Programme 167 74 full approval awarded The programmes that are submitted have insufficient evidence or do not meet the SAQA requirements.
21
Contd..Servicing Training Providers
Requirement New / Received/ Additional Evidence submitted Approved / Registered Reasons for deviation Programme 167 74 full approval awarded Some providers only submit incomplete pack i.e. Programme strategy Assessment tools Learner guide Facilitator guide Alignment matrix
22
Contd..Servicing Training Providers
Requirement New / Received/ Additional Evidence submitted Approved / Registered Reasons for deviation Assessor 323 new applications received 233 new assessors registered 455 re registrations Assessors submit inadequate evidence. In some instances the Providers are not subject matter expert for the programme they apply for. Others do not have the ETDP SETA statement of results.
23
Contd…Servicing Training Providers
Requirement New / Received/ Additional Evidence submitted Approved / Registered Reasons for deviation Moderator 159 new applications received 85 new moderators registered 106 re- registrations
24
Finance Presentation AFS /16 and BUDGETS –2016/17 & 2017/18
25
Key Regulatory Requirements- Expenditures of the SETA
Revenue from skills development levies by 1% of monthly wages & salaries if total salary bill if payroll >R p.a. Income is allocated as follows: National Skills Fund 20% Administration % (0.5% = QCTO) Mandatory Grants 20% Discretionary Grants/Projects 49.5% DG/ project expenditure regulated to a minimum of 80% for PIVOTAL and a maximum of 20% for NON-PIVOTAL training. DG related admin costs capped at 7.5% of DG/Project expenditure. * 10.5% and 7.5% (project administration costs) still a challenge due to structural sectorial design of CATHSSETA, as it is one of the smallest SETAs
26
Statement of Financial Position
2016 2015 Restated R’000 Assets Receivables 4 639 3 854 Cash and cash equivalents Liabilities Payables 58 386 45 167 Other provisions 8 462 6 792 Reserves Admin grant reserve 2 797 Discretionary grant reserve
27
Statement of Financial Performance
2016 2015 Restated R’000 Revenue Non-exchange revenues Exchange revenue (Investment income) 11 393 8 299 Expenses Employer grant and project expenses Administrative expenses 68 516 66 900 Other expenses (Losses on disposal of assets) 74 140 Net Surplus 41 860 37 774
28
Revenue Split 2016 R’000 2015 R’000
29
Revenue vs expenditure split (R’m – 2016)
30
Statement of Changes in Net Assets
2016 2015 Restated R’000 Revaluation Reserve 531 Employer Grant Reserve 41 Administration Reserve 2 797 Discretionary Grant Reserve Total
31
Cash Flow Statement 2016 2015 Restated R’000
Net cash flow from operating activities 62 061 35 750 Net cash outflow from investing activities (842) 554 Net cash inflow from financing activities (314) (1 297) Net increase/(decrease) in cash & cash equivalents 60 905 35 007 Cash & cash equivalents at the beginning of the year Cash & cash equivalents at the end of the year *Working capital cycle movements – operating activities movement
32
Commitments - Over / (Under)
2016 2015 Restated R’000 Commitment Funds Discretionary Grants Reserves Net Balance – (Over) / under commitments 44 722 (13 739) Cash reserves
33
Irregular Expenditure
2016 R’000 2015 Opening balance 79 301 54 324 Current Year - Non-compliance to SCM prescripts 1 321 26 238 - Non-compliance to legislation, i.e. deviations 4 468 14 813 - Contracts extensions –by CEO with no AA approval 1 391* - - Administration Expenditure in excess of thresholds 27 965 28 567 Total Amounts Duly condoned ( ) (44 641) Balance 1 391 NB: awaiting National Treasury condonation process to be finalised
34
Fruitless & Wasteful Expenditure
2016 R’000 2015 Restated Board & Committee fees paid, for meetings where no quorum was formed - 39 Cost of tender of services cancelled due to changes in terms of reference 380 Travel arrangements not honoured by TVETs 89 Total 419
35
Audit Outcomes Opinions for the current and previous financial years:
FY2015/16 – ‘Clean audit’ opinion FY2014/15 – Unqualified Audit Opinion with matters of emphasis FY2013/14- Qualified audit opinion
36
Audit Outcomes (cont.) Emphasis of Matter / Additional Matters
Restatement of prior year figures SETA license - 31 March 2018 SETA under Administration Compliance with legislation No identified instances of material non-compliance Internal controls No identified significant deficiencies in internal controls Investigations Fraud investigation uncovered, for period 2010 to 2014, led to legal action to recover R5,3m from former employee
37
Budgets – FY2016/17 & 2017/18 2016/17 2017/18 R’000 Revenue 310 590
* Non Exchange Revenue * Exchange Revenue 7 415 7 637 Expenditure by programmes * Administration 39 792 40 986 * Planning (Incl. mandatory grants related expenditure) 65 259 65 105 * Learning Programmes (Incl. discretionary grants related expenditure) Net Surplus -
38
Budgets – FY2016/17 & 2017/18: Key Programmes
2016/17 2017/18 Programme 3:Learning Interventions R'000 # of Learners entering (enrolled) LEARNERSHIP 36 125 32 197 # of Learners entering BURSARY programmes 38 575 42 500 # of Learners entering SKILLS programmes 14 288 15 335 # of learners entering internships 25 500 34 589 # of TVET learners placed in a WIL programme 39 297 53 954 # of ARTISANS entering training programmes 7 410 9 172 # of learners supported through industry funded interventions 14 704 2 290 Other projects 15 397 7 638 TOTAL
39
Conclusion Appointment of the CEO
Interviews for the position of the CEO were completed in September 2016 Documentation was submitted to the Minister for Cabinet consideration Appointment of the Accounting Authority The standard Constitution amended and submitted to the department for Ministerial approval The CATHSSETA stakeholders (organised employers and labour) invited to nominate representatives to the Board of CATHSSETA The closing date is the 26th November 2016 Allow me to thank the committee, DHET management and CATHSSETA fraternity for all the support during this period
40
Thank You
Similar presentations
