1. Presentation to Portfolio Committee on Higher Education

2. Presentation Outline CATHSSETA Overview; Strategy Direction; Budget; DHET Service Level Agreement; CATHSSETA Challenges; Questions and Answers

4. Contextual Background to the 2014/15 Why CATHSSETA went into Administration? – CATHSSETA has been facing challenges of consistently not meeting its predetermined objectives; – There’s been serious allegations made against some Board members and Senior management; – The Board commissioned Grant Thornton to investigate the allegations and make recommendations – The Board couldn’t act on the findings due to their differences – The Minister instructed the Board to resolve the challenges

5. Contextual Background to the 2013/14 ARP Why CATHSSETA went into Administration? (continued) – The infighting within the Board affected the performance of the organization wherein the targets were not met on a quarterly basis. – For the FY 2013/14, CATHSSETA received a qualified Audit with matters of emphasis – Due to dysfunctionality, the Minister instructed the DG to put the SETA under administration – An Administrator was appointed on the 16 th October to take over as the Accounting Authority for CATHSSETA

6. Achievements In 1 st Five Months Of Administration Administrator’s approach to turning CATHSSETA around; – Conducted an organisation diagnosis and analysis – Action Emanating from diagnosis Conducted investigations; Concluded outstanding disciplinary cases; Reviewed contracts; Instituted disciplinary action against CEO and CFO; Development of Strategic Plan and APP; Revised Strategic Plan and Annual Performance Plan; Revised high level plan for institution turnaround with inputs from diagnosis report.

7. Achievements In 1 st Five Months Of Administration Other achievements; – Conducted the 2013/14 AGM; – Established interim governance structures Remco and JWC’s; – Changed the window for 1 st quarter 2015/16 to be implemented in 4 th quarter 2014/15; and – Aligning resources to address immediate performance issues to achieve targets;

8. CATHSSETA Mandate The purpose of the CATHSSETA is to contribute to the South African Economy through facilitation of skills development in the relevant Sub-Sectors. The Seta is comprised of the following (6) sub-sectors; Culture, Arts & heritage Tourism and Travel services Hospitality Sport, Recreation and Fitness Conservation Gaming and Lotteries

9. CATHSSETA Mandate cont… We draw our legal mandate from the following statutes: South African Constitution Skills Development Act of 1998; South African Qualifications Authority Act of 1995; Education and Training Quality Assurance Bodies Regulation of 1998; Skills Development Levies Act of 1999; Learnership Regulations of 2006; National Qualifications Framework Act of 2008; Public Finance Management Act New Grant Regulation effective from 1 April 2013.

10. The size of CATHSSETA: Enterprises registered Sub-sector Size of Enterprise Number of enterprises registered with CATHSSETA % in the Sector 0-4950-149150+ Arts, Culture & Heritage80719128383.27% Conservation1 09633191 1484.48% Gaming & Lotteries45520495242.04% Hospitality17 43651021218 15870.86% Sport, Recreation & Fitness 1 96957172 0437.97% Travel & Tourism2 81652472 91511.38% TOTAL24 57969135625 626100%

11. Vision A leader in skills development within our diverse sector Mission To facilitate skills development through strategic partnerships for CATHSSETA to contribute to economic growth Values  Service Excellence  Fairness and Transparency  Respect  Accessibility  Integrity  Stakeholder orientation

13. Revision of SP and APP Review and Rationalization of Strategic Plan programmes by – Reducing programmes from 17 to 4 to improve focus; – Created four programmes viz. Administration; Corporate Governance; Planning; and Skills Development to ensure alignment to National Treasury guidelines;

14. List of CATHSSETA Goals Goal 1: Improve stakeholder participation in CATHSSETA sector skills development activities; Goals 2: Develop sector capacity to deliver skills development programmes informed by sector research and business intelligence; Goal 3: Coordinate delivery of learning interventions. Goal 4: Improve CATHSSETA competence in delivering to the mandate Improve CATHSSETA competence in delivering to the mandate

15. ADMINISTRATION Purpose: To enable the CATHSSETA to deliver on the mandate by providing leadership, sound financial management, organisational management, and administrative support. This programme is made up of the following sub- programmes i.e. Marketing and Communications, Finance, Human Resources, Knowledge Management and Information Technology Budget: R 22 888 429

16. Five Years Strategic Objectives In line with the Goals and the revised Budget Programmes – over the next 5 years we intend to: Programme 15 Years Strategic Objectives Administration  Comply with SCM performance imperatives  Comply with financial performance imperatives  Create an environment that enables performance  Comply with Occupational Health and Safety Act  Promote CATHSSETA to stakeholders  Strengthen CATHSSETA Brand  Ensure ICT system availability

17. GOVERNANCE Purpose: The purpose of this program is to enable CATHSSETA to deliver on its mandate through the provision of corporate governance support services that ensure accountability. This programme is made up of the Board services, office of the Chief Executive Officer and Accounting Authority structures Budget: R 12 954 634

18. Five Years Strategic Objectives Programme 25 Years Strategic Objectives Governance  Achieve special projects milestones  Ensure good governance at the CATHSSETA  Comply with applicable legal imperatives  Minimise the impact of risk  Resolve audit findings within agreed times  Achieve predetermined strategic objectives  Comply with corporate governance imperatives  Achieve customer satisfaction

19. PLANNING Purpose: The purpose of this programme is provide performance information services that informs management decision making that will lead to the achievement of the CATHSSETA predetermined strategic objectives. This programme is made up of the following units i.e. the Research unit, Strategy & Annual Performance Planning unit, Monitoring & Reporting unit and the Evaluation unit. Budget: R 12 720 040

20. Five Years Strategic Objectives Programme 35 Years Strategic Objectives Planning  Commission CATHSETA sector research  Submit strategy performance reports to DHET  Improve the impact of strategy planning services within CATHSSETA

21. SKILLS DEVELOPMENT Purpose: To facilitate the delivery of the CATHSSETA core mandate of skills development in the CATHSSETA sector. This programme is made up of the five sub- programmes i.e. Quality Assurance, Learning Interventions and Grants, Special programmes, Provincial Operations and Chambers. Budget: R 231 436 898

22. Five Years Strategic Objectives Programme 45 Years Strategic Objectives Skills Development  Build qualifications that are fit for purpose  Improve Training Provider compliance with legislated requirements  Improve the capacity of TVET Colleges to deliver skills development interventions  Increase the number of learners enrolled in PIVOTAL programmes  Implement sector skills development plans  Contribute to skills development in the public sector within the CATHSSETA sector  Improve the payment of Mandatory grants  To increase support to sectoral small business organisations

27. PERFORMANCE INDICATORS SETA FUNDED TARGETS SECTOR FUNDED TARGETS TOTAL SLA TARGET Large Firms Supported 200- Medium Firms Supported250- Small Levy Paying Firms Supported400- Unemployed Entered Learnerships400900 1300 Unemployed Entered Bursaries200- Unemployed Entered Internships150- Unemployed Entered Skills Programmes200- Unemployed Completed Learnerships200450 650 Unemployed Completed Bursaries100- Unemployed Completed Internships-- Unemployed Completed Skills Programmes100- Artisans Entered100104 204 Artisans Completed5052 102

28. PERFORMANCE INDICATORS SETA FUNDED TARGETS SECTOR FUNDED TARGETS TOTAL SLA TARGET Workers Entered Learnerships2001150 1350 Workers Entered Bursaries150- Workers Entered Skills Programmes3001000 1300 Workers Completed Learnerships100575 675 Workers Completed Bursaries75- Workers Completed Skills Programmes150500 650 TVET Student Placement Entered1200- Universities Student Placement Entered170- SETA/Employer Partnerships8- 8 Lecturer Development Programmes Entered50- Lecturer Development Programmes Completed50- Small Business Supported800- Career Guidance Events15 Number of Rural development Projects Planned5- 5

30. Strategic Challenges for CATHSSETA Significant number of (service) providers in the sector are urban based in spite of rural areas contribution (conservation 63%, gaming and lotteries 27%, hospitality 29%) Levy income is minimal relative to the actual demand for skills across the sectors; 90% of CATHSSETA registered enterprises are small and many are exempted from paying skills levy; The organisation services a large number of smaller enterprises with limited income from few larger enterprises

31. Strategic Challenges for CATHSSETA Limited income impact negatively on CATHSSETA: Wide & diverse sector dependent on a variety of occupations (qualifications); No Provincial footprints; Poorly managed business contracts; Inability to match service delivery and financial challenges; Delivering consistent compliance with governance imperatives;

32. Thank You