1. Briefing on capacity building in local government
Presenter Name • Nqaba Nqandela
Parliament, 09 June 2015

2. Contents Introduction
Top 5 areas that require improvement in the programme
Top 5 areas that are working effectively in the programme
Plans for 2016/17 and APP targets
Presentation Title • Presentation to the COGTA PC • Date June 2015

3. Statutory role
The Local Government Sector Education and Training Authority was established in terms of the Skills Development Act (No. 97 of 1998) and is mandated to promote skills development for the local government sector
Relicensed by the Minister of Higher Education and Training for the period of April 2011 to March 2016
Operates within the skills development framework articulated in the National Skills Development Strategy III framework, Skills Development Acts, and SETA Grant Regulations
Offers a range of occupationally directed skills development programmes including learnerships, apprenticeships, skills programmes, internships, work integrated learning, bursaries, AET and RPL
Presentation Title • Presentation to the COGTA PC • Date June 2015

4. Effecting our mandate through sector skills planning
“SETAs play an important role in gathering statistics and other relevant information on labour market skills needs and training provision... Such information is essential in planning to meet the country’s skills needs and guiding investment in education and training provision.” NSDS III, 2011
This is mainly done through the development and updating of the Sector Skills Plan (SSP)
The SSP informs skills development initiatives for the local government sector, and is translated into the Strategic Plan and Annual Performance Plan of the LGSETA
Presentation Title • Presentation to the COGTA PC • Date June 2015

5. Effecting our mandate through sector skills planning
The purpose of the SSP is to:
Provide a sector profile;
Analyse skills demand and supply within the sector, and determine skills development priorities;
Identify sector specific skills development objectives and goals that will meet sector needs, including scarce skill needs
Identify strategies to address the objectives and goals;
Identify activities that will support these strategies;
Develop implementation and resourcing models for these activities; and
Report on performance in relation to objectives and goals.
Presentation Title • Presentation to the COGTA PC • Date June 2015

6. Effecting our mandate through sector skills planning
Key to developing the SSP is the input from the sector that is done through the submission of the Workplace Skills Plan and Annual Training Reports
In 2014, LGSETA held a WSP and ATR launch event to introduce a new online format for submissions
SDF training sessions and technical support were provided at provincial and district-level
New features were introduced to assist in higher levels of data completion and hence, quality of information being submitted
Presentation Title • Presentation to the COGTA PC • Date June 2015

7. Effecting our mandate through sector skills planning
Province
Number of Municipalities
Number of submissions
Compliant Submissions
Non-compliant (stakeholder signatures missing/not completed
Compliant Submission Rate (%)
Eastern Cape 45
100
Free State 24 23 1 96
Gauteng 12
KZN 61 58 3 95
Limpopo 30
Mpumalanga 21
North West 17 6 74
Northern Cape 32 28 4 88
Western Cape 2 93
Total
278
262 16 94
Presentation Title • Presentation to the COGTA PC • Date June 2015

8. Effecting our mandate through skills development implementation
Employed (18.1)
Unemployed (18.2)
APP Target
13 200
12 650
DOI Requests
47 776
42 111
Over/(under)
34 576
29 461
The estimate of funding requests for 2014/15 was in region of R1.6bn but the LGSETA only had a budget of about R396,4m
Presentation Title • Presentation to the COGTA PC • Date June 2015

9. Effecting our mandate through skills development implementation
PROVINCE A B C D E F G
Approved Numbers
Approved Numbers where no documentation was submitted
Approved Numbers where partial documentation was submitted
Funding Agreements Completed for approved numbers
Funding Agreements not yet completed for approved numbers
Number of funding agreements
Potential training beneficiaries for 2013/14 (D+E)
Conversion rate (%) (F/A*100)
18.1
18.2
Eastern Cape
2140
1580
498
355
1485
720 67
280 5 90
225
157
505
7.34%
31.96%
Free State
897
1323
859
507 38
816
4.24%
1.97%
Gauteng
10872
2346
9182
1513
1104
670
140
143
416 20
556
163
5.11%
6.95%
KwaZulu-Natal
3033
3223
1900
1825
1033
145
323 10
930
100
1253
3.30%
38.88%
Limpopo
575
435
533
352 42 83
7.30%
19.08%
Mpumalanga
481
265
403
108
170 2
216
172
44.91%
29.91%
North West
2772
3370
2329
3016
122
128
321
234
443
362
15.98%
10.74%
Northern Cape
202 34
0.00%
Western Cape
10546
1919
4175
739
6013
1152
127 24
231 4
358 28
3.39%
1.46%
Total
31518
14805
19943
8744
9635
2687
734
1967
1176
1415
1910
3382
6.06%
22.84%
Presentation Title • Presentation to the COGTA PC • Date June 2015

10. Effecting our mandate through skills development implementation
Given low performance of previous year DG funded projects, the LGSETA took the decision to focus on the implementation of currently funded projects as many had not yet started by end of 2013/2014 financial year
To further review processes to ensure greater performance and support provided to municipalities to comply from onset and ensure implementation
Introduction of new DG process
Presentation Title • Presentation to the COGTA PC • Date June 2015

11. Are we making an impact towards addressing scarce skills in the sector?
Bursaries awarded by the LGSETA from 2011/12 to 2013/14
Development and transformation imperatives
2011/12
2012/13
2013/14
Total
18.1
18.2
Both
Total of which:
181
176
321
127
131
472
633
775
1 408
Black Male 75
 74
141 61 78
180
294
315
609
Black Female
100
 73
161 55 53
292
314
420
734
White Male 3
 16 11 5 14 21 35
White Female
 13 8 6 19 30
PWD  0
Youth
151
 172
197
125 74
422
769
1 191
Presentation Title • Presentation to the COGTA PC • Date June 2015

12. Are we making an impact towards addressing scarce skills in the sector?
Learnerships registered by the LGSETA from 2011/12 to 2013/14
Development and transformation imperatives
2011/12
2012/13
2013/14
Total
18.1
18.2
Both
Total of which:
1 923
1 058
1 134
364
1 031
1 888
4 088
3 310
7 398
Black Male
844
 483
877
163
562
593
2 283
1 239
3 522
Black Female
992
 575
229
201
445
1 295
1 666
2 071
3 737
White Male 42  0 18 17 77
White Female 45 10 7 62
PWD
Youth
738
 1 003
414
308
449
1 807
1 601
3 118
4 719
Presentation Title • Presentation to the COGTA PC • Date June 2015

13. Are we making an impact towards addressing scarce skills in the sector?
Learnerships certificated by the LGSETA from 2011/12 to 2013/14
Development and transformation imperatives
2011/12
2012/13
2013/14
Total
18.1
18.2
Both
Total of which:
851
224
1 303 72
530
384
2 684
680
3 364
Black Male
508
 105
792 4
250
154
1 550
263
1 813
Black Female
288
 119
510 68
247
230
1 045
417
1 462
White Male 50  0 1 12 63
White Female 5 21 26
PWD
Youth
408
 190
464 57
237
332
1 109
579
1 688
Presentation Title • Presentation to the COGTA PC • Date June 2015

14. Are we making an impact towards addressing scarce skills in the sector?
Artisans registered by the LGSETA from 2011/12 to 2013/14
Development and transformation imperatives
2011/12
2012/13
2013/14
Total
18.1
18.2
Both
Total of which:
171
381
112
188
125
404
408
973
1 381
Black Male
150
280 88
131
105
270
343
681
1 024
Black Female 12 66 14 36 15 94 41
196
237
White Male 8 34 10 20 5 40 23
117
White Female 1 2
PWD
Youth 52
352 51
165 42
395
145
912
1 057
Presentation Title • Presentation to the COGTA PC • Date June 2015

15. Are we making an impact towards addressing scarce skills in the sector?
Artisans certified by the LGSETA from 2011/12 to 2013/14
Development and transformation imperatives
2011/12
2012/13
2013/14
Total
18.1
18.2
Both
Total of which 65
202 61
203 39 88
165
493
658
Black Male 48
130 51
142 29 63
128
335
463
Black Female 16 59 4 43 3 14 23
116
139
White Male 6 17 7 11 42 58
White Female 1
PWD
Youth 36
137
184 86 50
407
457
Presentation Title • Presentation to the COGTA PC • Date June 2015

16. Are we making an impact towards addressing scarce skills in the sector?
Skills Programmes registered by the LGSETA from 2011/12 to 2013/14
Development and transformation imperatives
2011/12
2012/13
2013/14
Total
18.1
18.2
Both
Total of which:
4 703 46
1 413
912
805
553
6 921
1 511
8 432
Black Male
2720
 15
765
341
442
230
3 927
586
4 513
Black Female
1667
 31
302
571
300
323
2 269
925
3 194
White Male
205  0 35 0  27
267
White Female
111 8 36
155
PWD 15
Youth
 42
303
 624
467
389
785
1 055
1 840
Presentation Title • Presentation to the COGTA PC • Date June 2015

17. Are we making an impact towards addressing scarce skills in the sector?
Skills Programmes certified by the LGSETA from 2011/12 to 2013/14
Development and transformation imperatives
2011/12
2012/13
2013/14
Total
18.1
18.2
Both
Total of which:
158
288
6 165
128
360
6 683
416
7 099
Black Male
104
121
 3 337 64
122
3 563
185
3 748
Black Female 46
167
2 042
110
2 198
231
2429
White Male 2
561 89
652
White Female 8
225 39
272
PWD
Youth 28
144
2 952 19 88
3 068
163
3 231
Presentation Title • Presentation to the COGTA PC • Date June 2015

18. Effecting our mandate through skills development implementation
Given low performance of previous year DG funded projects, The LGSETA reviewed the WSP & ATR and related DOI approval process
Past practice included bringing a group of representatives to assess aspects of WSP in terms of completion of data and provide improvement recommendations
Process did not appear to be a substantive evaluation of fit for purpose and alignment with LGSETA goals, sector and/or national priorities
The process followed in 2014:
Develop a target allocation model to inform Provincial and National targets using the 7 NSDS III imperatives
Review 2013/14 performance for recommended interventions
Review 2014/15 submissions and assess against 2013/14 performance and areas of focus of LGSETA as informed by SSP
Recommended list for approval
Presentation Title • Presentation to the COGTA PC • Date June 2015

19. Effecting our mandate through skills development implementation
Grants policy
Distinction between regular and special projects
Integration of applications into a single application window
Appointment of an independent service provider to support allocations
3 stage allocation process
Compulsory due diligence for shortlisted applicants
“Intention to contract” notification – suspensive clauses to be met
Contracting
Funding framework
Performance based payment method – no tranches
Dedicated bank accounts or vote accounts/cost centres in case of public institutions
Learner bank accounts for stipend payment
Presentation Title • Presentation to the COGTA PC • Date June 2015

20. Compliance and evaluation
Effecting our mandate through skills development implementation
Closing date
Award
Contracting
Advert window
Compliance and evaluation
Due diligence
Suspensive clauses
19/01/2015
27/02
13/03
19/03
30/04
Application portal closes 27 February 2014 – no late submissions
Due diligence visits will be scheduled in week of 9 March 2015
All applicants must prepare their due diligence files as part of their applications and have files ready on date of visits
Visits will be scheduled with 24 hrs notice
Incomplete due diligence will negatively impact allocations
Suspensive clauses in ‘Intention to contract’ must be fulfilled within prescribed timelines (at least days from date of letter)
LGSETA anticipates learners to be funded in this advert window to start training in May 2015
Presentation Title • Presentation to the COGTA PC • Date June 2015

21. Monitoring skills development
LGSETA operates from a national office in Gauteng and has a presence in all provinces
Each provincial office has dedicated staff for project coordination and quality assurance of training provision. A senior manager: Monitoring and Evaluations has been appointed to manage and strengthen this function
Regular visits are scheduled to monitor project implementation in the workplace and at the training provider by the provincial office where active training is taking place with monitoring documentation completed by the relevant parties.
Reports inform any support required or corrective measures to be taken by the SETA
The ETQA Unit further supports monitoring namely through ensuring that only accredited training providers as per the LGSETA’s quality assurance policies deliver learning interventions.
Presentation Title • Presentation to the COGTA PC • Date June 2015

22. Challenges faced
On the 20 March 2013 the Director-General: Department of Higher Education and Training placed the LGSETA under administration, as directed by the Minister of Higher Education and Training
This was as a result of serious governance and management failures in the organisation
The turnaround strategy aimed among other issues, to facilitate the process of repositioning the organisation to make it more relevant and responsive to the needs of the local government sector
Presentation Title • Presentation to the COGTA PC • Date June 2015

23. Challenges faced
The repositioning of the LGSETA aims to make it a SETA of operational and people excellence, characterised by the ability to attract top talent and retaining key personnel
Attracting suitably qualified and experienced staff proved to be challenging in view of the license period of the SETA. A major achievement for the SETA is the fact that all appointments at executive level have been concluded
The focus now shifts to the lower levels and the key areas are on creating organisational capacity, performance management, leadership development and change management, employee wellness, as well as rewards and recognition
Presentation Title • Presentation to the COGTA PC • Date June 2015

24. Challenges faced
The absence of a coherent communication strategy contributed to poor stakeholder relationship management as well as visibility of the LGSETA
An integrated strategy has be developed for approval and implementation to rebuild the organisation’s reputation in the SETA environment
The IT environment was characterised by the limited ability of the organisation to optimally function at the level that is required given the on-going technological changes
An IT and systems audit have been conducted with implementation recommendations for a stable IT platform
Presentation Title • Presentation to the COGTA PC • Date June 2015

25. Challenges faced
Auditor-General reports also highlighted challenges in financial and performance management, influenced by limited capacity in the organisation and a lack in standard operating procedures, systems and documented system descriptions, monitoring and reporting of performance, and records and document management. Capacity challenges in local government adds to these limitations. The SETA’s response to these include:
Strengthen capacity in Finances and Operations
Review business processes and procedures
Improve communication and support to stakeholders
Review the information, records and document management
Ensure staff received appropriate training and development
Reviewing the monitoring, evaluation and reporting function
Presentation Title • Presentation to the COGTA PC • Date June 2015

26. Challenges faced
Auditor-General reports also highlighted challenges in financial and performance management, influenced by limited capacity in the organisation and a lack in standard operating procedures, systems and documented system descriptions, monitoring and reporting of performance, and records and document management. Capacity challenges in local government adds to these limitations. The SETA’s response to these include:
Strengthen capacity in Finances and Operations
Review business processes and procedures
Improve communication and support to stakeholders
Review the information, records and document management
Ensure staff received appropriate training and development
Reviewing the monitoring, evaluation and reporting function
Presentation Title • Presentation to the COGTA PC • Date June 2015

27. Coordinating capacity building in local government
The LGSETA has been working with COGTA and SALGA who formed part of the Working Group that was formed for the purpose of the Administration period. Other stakeholders included SAMWU and IMATU
Several interventions have been funded by the LGSETA in response to skills needs identified by these stakeholders
LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

28. LGSETA funded COGTA Interventions
Coordinating capacity building in local government
LGSETA funded COGTA Interventions
Project
Number of Beneficiaries
Funding amount
Status of project
Councillor Toolkit
N/A
R800k
Active
Women Councillor Support
R1.4m
Inactive
Councillors with Disabilities
R500k
Local Government Competency Framework
R3m
National Coordinated Programme of Support
R550k
LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

29. LGSETA funded COGTA (Provincial) Interventions
Coordinating capacity building in local government
LGSETA funded COGTA (Provincial) Interventions
Project
Number of Beneficiaries
Funding amount
Status of project
Disaster and Risk Management (KZN) 45
R270k
Active
Fire and Rescue Services (KZN)
R720k
Municipal Finance Management 90
R450k
Monitoring and Evaluation (LP)
Municipal Public Accounts (MP)
163
R930k
Municipal Public Accounts (LP)
R513k
Management Development Programme (NLPE) 36
R886k
LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

30. LGSETA funded SALGA Interventions
Coordinating capacity building in local government
LGSETA funded SALGA Interventions
Project
Number of Beneficiaries
Funding amount
Status of project
Councillor Development Programme
5 180
R28m
Active: 2000 learners registered to date
Leadership Development Workshop
599
R3m
Active: 200 learners registered to date
Capacity Building Grant
SALGA
R5m over 3 years
First grant amount of R2m paid and balance being processed
LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

31. LGSETA funded SALGBC Interventions
Coordinating capacity building in local government
LGSETA funded SALGBC Interventions
Project
Number of Beneficiaries
Funding amount
Status of project
Local Labour Forum Capacity Building
4000
R12m
Active – Learner recruitment currently under way
LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

32. Way forward
Despite the challenges facing the organisation, the stage is set for the LGSETA to reclaim its position as an important facilitator of skills development in the local government sector
The new CEO has been appointed from May 2015
Invitations for board members were advertised and the process should be completed by September 2015
Invitations for 2015/16 discretionary grants has been concluded and contracting is in process
Submissions for mandatory grants have been concluded on 30 April (31 May)
A communication strategy has been finalised, and through planned engagements the SETA will improve in being responsive to the skills development needs of the sector
LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

33. Way forward: SETA relicensing
SETAs are licensed for a 5 year period to address the skills development needs as outlined in the NSDS and in this case, NSDS III
Current SETA landscape is due to end in March 2016.
LGSETA is awaiting the new NSDS and SETA landscape to be announced for consultationby the Minister of Higher Education and Training afterwhich, the LGSETA will be in a better position to articulate how it responds to the new NSDS and SETA landscape
LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

34. Way forward: SETA relicensing
SETAs are licensed for a 5 year period to address the skills development needs as outlined in the NSDS and in this case, NSDS III
Current SETA landscape is due to end in March 2016.
LGSETA is awaiting the new NSDS and SETA landscape to be announced for consultationby the Minister of Higher Education and Training afterwhich, the LGSETA will be in a better position to articulate how it responds to the new NSDS and SETA landscape
LPD Strategic Plan Preparatory Session• LPD• 4 June 2015

35. COMMENTS /QUESTIONS
Thank you