1. QCTO presentation to Portfolio Committee17 Oct 2014
Annual Report 2013/14
Presentation of Annual Report to the Portfolio Committee on Higher Education and Training
QCTO presentation to Portfolio Committee17 Oct 2014

2. QCTO presentation to Portfolio Committee17 Oct 2014
Annual Report Theme---- Taking Root and Settling In
QCTO presentation to Portfolio Committee17 Oct 2014

3. Organisation’s Mandate
QCTO established under the Skills Development Act 97 of 1998 as amended in 2008
Both the Skills Development Act and the National Qualifications Framework Act 67 of 2008 specify the mandate of the QCTO which basically entails---
Ensuring that occupational qualifications (which includes trades) are developed and quality assured
Managing the Occupational Qualifications Sub Framework (OQSF)
QCTO presentation to Portfolio Committee17 Oct 2014

4. Organisation’s Mandate
In the execution of its work the QCTO
a. oversees
Legacy qualifications of which there are more than 2,000
N4 to N6 part qualifications and National “N” Diploma
More than 10 Quality Assurance Partners
b. handles
The processing of more than 200 applications for qualifications development
Monitors the actions of more than 60 Development Quality Partners
QCTO presentation to Portfolio Committee17 Oct 2014

5. QCTO presentation to Portfolio Committee17 Oct 2014
2013/2014 Achievements
Human Resources
Staff appointments at all levels such that as of today permanent staff composition sits at 32
Monitoring & Evaluation Unit fully established
Governance
Qualifications, Assessment and Accreditation and Audit & Risk Committees fully operational, thus all committees of Council established
Internal Audit fully operational
QCTO presentation to Portfolio Committee17 Oct 2014

6. QCTO presentation to Portfolio Committee17 Oct 2014
2013/2014 Achievements
Policy development
Full range of policies developed and approved
As of October 2014 no need to continue MoA with the Department of Higher Education and Training (DHET)
Finance and Administration
Implementation of an accrual accounting system
Move to new location (outside of DHET building) December 2013
QCTO presentation to Portfolio Committee17 Oct 2014

7. QCTO presentation to Portfolio Committee17 Oct 2014
2013/2014 Achievements
Core Operations
Standardised processes documented and communicated to relevant partners
Development of qualifications on a upward trajectory
Establishment of Quality Assurance Framework
Certification system for trades fully functional and advancing for other occupational qualifications
QCTO presentation to Portfolio Committee17 Oct 2014

8. 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
Finalised SCM (and other Financial polices), the ICT plan and draft HR manual and ICT plan such that today MoA with the DHET no longer required
QCTO presentation to Portfolio Committee17 Oct 2014

9. Predetermined Objectives
Achievements for Programme 2 (qualifications management) included:
Approval of the Occupational Qualifications Sub Framework policy document
Exceeding the target for completion of guidelines for implementing policies
59 qualifications recommended to SAQA for registration (target was 70; therefore shortfall of 11)
Systems in place and executed for the monitoring of all historically registered qualifications managed
QCTO presentation to Portfolio Committee17 Oct 2014

10. Predetermined Objectives
Achievement for Programme 2 (continued)
System for accreditation of assessment centres in place
Certification system for trades functional, where a single trade certificate under the SDA is issued
Turnaround time for QCTO issuance of trade certificates 3 to 4 working days
System for provider accreditation implemented September 2013
All Quality Assurance Partners (SETAs and Professional Bodies) monitored as Monitoring & Evaluation Unit established and operational
QCTO presentation to Portfolio Committee17 Oct 2014

11. Predetermined Objectives
Important areas of under achievement for programme 2 included:
Number of qualifications developed and recommended to SAQA Target 70 Actual 59
Number of AQP assessment systems evaluated to be valid and reliable Target 20 Actual 13
Verification and Certification system developed—Trade system fully developed but non trade qualifications still in early stages of development
1 provider accredited per new qualification registered Target 70 Actual 2
QCTO presentation to Portfolio Committee17 Oct 2014

12. QCTO presentation to Portfolio Committee17 Oct 2014
2013/2014 Annual Report
Challenges
Majority of staff completely new to the operations
Stakeholder awareness of the QCTO operations
IT system implementation in development stages
Data and information analysis outdated
QCTO presentation to Portfolio Committee17 Oct 2014

13. FINANCIAL RESULTS Statement of Financial Performance
2013/2014 Annual Report
FINANCIAL RESULTS Statement of Financial Performance
2013/14
R’000
2012/13
REVENUE
Grant allocation: DHET
21,747
20,352
Grant Allocation: SETA
15,428 -
Finance Income
1,314
837
NSF Funds 82
TOTAL REVENUE
38,571
21,189
Compensation
(17,440)
(9,184)
Other Expenses
(19,248)
(6,651)
NET SURPLUS FOR THE YEAR
1,883
5,354

14. QCTO presentation to Portfolio Committee17 Oct 2014
2013/2014 Annual Report
FINANCIAL RESULTS Budget Against Actuals
Budget
R’000
Actuals
(Under)/Over
CLASSIFICATION
Employee Costs
27,181
17,440
9,565
Goods and Services
15,149
19,248
(4,099)
Capital Expenditure
8,664
9,491
(827)
TOTAL
50,994
49,111
(1,883)
QCTO presentation to Portfolio Committee17 Oct 2014

15. QCTO presentation to Portfolio Committee17 Oct 2014
2013/2014 Annual Report
AUDIT OUTCOMES
3 Years of Unqualified Audit Opinion (since inception)
Findings:
Reliability of Performance Information
Material adjustments in the Annual Performance information
Adjustments to the Annual Financial Statements
Irregular Expenditure
Asset Management
Non Validation of Performance Information
Accrual System – Not applied all year round
QCTO presentation to Portfolio Committee17 Oct 2014

16. AUDIT OUTCOMES 2013/2014 Annual Report # FINDING ROOT CAUSES
REMEDIAL ACTIONS 1.
Reliability of Performance Information
Inadequate system during the first half of the year
Corrected 2.
Material adjustments to the Annual Performance information
Inadequate Processes (Information telephonically received from Quality Partners)
Independent verifications prior to reporting 3.
Non Validation of Performance Information 4.
Material Adjustments in the Annual Financial Statements
Dependence/Reliance on the Department’s systems for the nine (9) months of 2013/14
Corrected. QCTO’s own Financial systems implemented in January 2014 onwards.

17. AUDIT OUTCOMES 2013/2014 Annual Report # FINDING ROOT CAUSES
REMEDIAL ACTIONS 5.
Irregular Expenditure
Cost originally covered by GIZ grant; project team unaware of end date
Corrected. Project team ensured SCM requirements attended to 6.
Assets Management
Dependence/Reliance on the Department’s systems for the nine (9) months of 2013/14
Corrected. QCTO’s own Assets Management systems implemented in January 2014 onwards. QCTO is now fully independent from the DHET 7.
Accrual System – Not applied all year round
Corrected. QCTO’s own Financial systems implemented in January 2014 onwards. QCTO is now fully independent from the DHET