1. Safety and Security SETA Annual Report 2013/14 Portfolio Committee on Higher Education Portfolio Committee on Higher Education 19 November 2014 Portfolio Committee 2014 SASSETA - your partner in skills development

2. The 2013/14 Financial Year was a year of mixed results for SASSETA The year started with two prior qualifications in the following areas: Annual Financial Statements – Discretionary Grants – Payables – Commitments – Admin expenditure Introduction SASSETA - your partner in skills development

3. Supply Chain Management – Orders procured without sourcing the required number of quotes – Procurements awarded to suppliers who did not posses valid tax clearance certificates – Incorrect application of the preference point system in the competitive biddings processes – Tenders not advertised for a period of at least 21 days Introduction SASSETA - your partner in skills development

4. AOPO – Presentation – Consistency – Measurability of the targets/indicators (SMART principles) – Indicators not verifiable – Achievements not verifiable/supported Next is a summary of the comparison of the audit over the past two years to 2013/14 Introduction SASSETA - your partner in skills development

5. Component2011/122012/132013/14 Annual Financial Statements Qualified Discretionary Grants; Payables; and Commitments Qualified Discretionary Grants; Payables; Commitments; and Admin Expenditure Unqualified Performance Information: Smart Criteria Disclaimer Presentation; Consistency; and Measurability (3) Indicators not Verifiable Qualified Presentation; Consistency; and Measurability (3) Unqualified Performance Information: Reliability of Information Disclaimer Accuracy; and Achievements not verifiable Disclaimer Achievements not verifiable Unqualified Comparisons / 3 years

6. Organisational environment ─The organisation environment lacked stability ─Several key posts at management level were vacant ─There were a number of resignations and dismissals ─A number of investigations were also carried out resulting in disciplinary processes Introduction SASSETA - your partner in skills development

7. Service delivery environment While the organisation was faced with these challenges, a number of measures were undertaken to stabilise the environment: – Filling in of vacant positions, in particular the Chief Financial Officer, Corporate Services, Supply Chain and IT – Development of a turnaround strategy – An action plan to address audit findings Introduction

8. Service delivery environment (continued) – Appointment of an Internal Audit – Development and implementation of the catch-up plan to improve on SLA targets Introduction

9. These resulted in mixed results: ─The audit outcome was positive – unqualified audit ─While improvements were noted in achieving the SLA and APP targets, some targets were not achieved ─The unqualified audit had some findings which are being addressed ─Improved delivery on placements and bursaries were noted Introduction SASSETA - your partner in skills development

10. Please follow presentation from page 24 of the Annual Report Portfolio Committee 2014 SASSETA - your partner in skills development

11. 3.1 Programme: Skills planning, research and reporting Purpose of the programme: To develop a credible institutional mechanism for skills planning to provide reliable information on supply and demand for skills in the Safety and Security sector. IndicatorTargetActualVarianceComments 7.1.1 Established a credible institutional mechanism for skills planning A well-researched and updated SSP approved by DHET and other relevant stakeholders SSP compiled and accepted by all stakeholders and approved by DHET SSP compiled submitted and approved NoneAchieved

12. IndicatorTargetActualVarianceComments 7.1.2 Established partnerships with universities for labour market research Number of partnerships entered into with Universities for labour market research Signing of MOUs with Universities 2 MOUs have been entered into with Universities 2Achieved Number of commissioned research projects for impact analyses of the learning interventions 2 research impact analyses for NDSD II and III for interventions 2 research impact analyses conducted with University of Zululand Studies have not yet been completed Impact studies were conducted but not yet approved by the Board. The universities needed to verify information. 2 Research impact analyses being conducted for Court Interpreters and General Security Officer skills training projects. 3.1 Programme: Skills planning, research and reporting

13. IndicatorTargetActualVarianceComments 7.1.3 Increase number of employers accessing the mandatory grants Increase of Mandatory Grants claimed 1060 (1%) 944-116 Not Achieved. The reduction of Mandatory Grants from 50% to 20% impacted negatively on the willingness of employers to submit the WSPs and ATRs. SASSETA will embark on Road Shows to encourage submission Number of SDFs trained 500552+52Over achieved. There was a lot of interest shown, more than anticipated 3.1 Programme: Skills planning, research and reporting

14. 7.1.4 Build Capacity within government departments for skills planning and submission of WSPs and ATRs Number of HRD units capacitated in sector skills plan and submission of WSPs and ATRs 55NoneAchieved 3.1 Programme: Skills planning, research and reporting IndicatorTargetActualVarianceComments

15. 3.2 Programme: Skills implementation and Monitoring Purpose of programme: Facilitation of the delivery of quality Learning Programmes, especially targeting the scarce and critical skills within the sector. Identification of skills development provision challenges and addresses to ensure improved access to quality and relevant education and training in the sector including rural areas.

16. IndicatorTargetActualVarianceComments 7.2.1 Partnership agreements with universities and public FET Colleges in place by 2015/16 for implementation of SASSETA learning programmes No. of partnership agreements in place with Universities 3 MoUs with Universitie s in place 2 Not Achieved 2 Partnerships were entered into with Universities. There were challenges with identifying specific deliverables within timelines. We have approached more public to meet this target and address the Ministerial objectives No. of partnership agreements in place with Public FET Colleges 3 MoUs with FETs in place 3 MoUs signed NoneAchieved 3.2 Programme: Skills implementation and Monitoring

17. IndicatorTargetActualVarianceComments 7.2.2 Approval of Universities and FET colleges to offer learning programmes within scope of SASSETA No. of Universities approved to offer SASSETA learning programmes 2 Universities approved to offer SASSETA learning programmes --2Not Achieved Capacity issues in ETQA and challenges of engaging institutions make it difficult to reach this target. However, in addressing the capacity the ETQA HOD has been appointed and target will be addressed. 3 Public FETs approved to offer SASSETA learning programmes --3Not Achieved Capacity issues in ETQA and challenges of engaging institutions make it difficult to reach this target. However, in addressing the capacity the ETQA HOD has been appointed and target will be addressed. 3.2 Programme: Skills implementation and Monitoring

18. IndicatorTargetActualVarianceComments 7.2.3 Provide Learnerships and Skills Programmes for both employed and unemployed learners focussing on scarce and critical skills by 2015/16 No. of employed learners entering learnerships 15001789+289Over Achieved Target was overachieved due to improved partnerships with employers and increased participation No. of employed learners completing learnerships 750271-479Not achieved. Target affected by late implementation of projects caused by project advertised late and evaluation process taking longer. This process has now been corrected and streamlined accordingly.

19. 3.2 Programme: Skills implementation and Monitoring IndicatorTargetActualVarianceComments 7.2.3 Provide Learnerships and Skills Programmes for both employed and unemployed learners focussing on scarce and critical skills by 2015/16 No. of employed learners entering skills programmes 40002996-1004Not achieved. The initial target was 1090, however the target was increased by DHET by 2920 which makes the target 4000. DHET increased SLA targets based on anticipated increment of Levy payment from 10% to 20% by Employers which was never effected due to revised decision by Cabinet. No. of employed learners completing skills programmes 2000990-1010Not achieved. The initial target was 864, however the target was increased by DHET with 1136, which makes the target 2000. DHET increased SLA targets based on anticipated increment of Levy payment from 10% to 20% by Employers which was never effected due to revised decision by Cabinet.

20. 3.2 Programme: Skills implementation and Monitoring No. of unemployed learners entering learnerships 25002422-78Not achieved. The initial target was 1200, however the target was increased by DHET with 1300, which makes the target 2500. DHET increased SLA targets based on anticipated increment of Levy payment from 10% to 20% by Employers which was never effected due to revised decision by Cabinet. No. of unemployed learners completing learnerships 12501576+326Over Achieved Projects were implemented late but the execution phase was managed well leading to achieving of the target. IndicatorTargetActualVarianceComments 7.2.3 Provide Learnerships and Skills Programmes for both employed and unemployed learners focussing on scarce and critical skills by 2015/16 SASSETA - your partner in skills development

21. 3.2 Programme: Skills implementation and Monitoring No. of unemployed learners entering skills programmes 15001559+59Achieved Projects were implemented late but the execution phase was managed well leading to over achieving of the target No. of unemployed learners completing skills programmes 750974+224Over achieved Projects were implemented late but the execution phase was managed well leading to achieving of the target IndicatorTargetActualVarianceComments 7.2.3 Provide Learnerships and Skills Programmes for both employed and unemployed learners focussing on scarce and critical skills by 2015/16

22. 3.2 Programme: Skills implementation and Monitoring IndicatorTargetActualVarianceComments 7.2.4 Artisans trained and qualified through different learning routes, learnerships, apprenticeships, RPL and NCV (3442) No. of artisan workers entering through RPL, Learnerships 165--165Not achieved The completion of artisan was delayed by the legal dispute between Service provider and MERSETA which led to suspension of accreditation. Management has intensified the process of working with FET colleges. No. of artisans workers completing and successfully completing through RPL, Learnerships 85--85Not achieved The completion of artisan was delayed by the legal dispute between Service provider and MERSETA which led to suspension of accreditation. Management has intensified the process of working with FET colleges.

23. 3.2 Programme: Skills implementation and Monitoring No. of unemployed artisans entering through: Learnerships, RPL Apprenticeships NCV 165432+267Over achieved As a result of changes to the Skills Accord target we were required to increase our intake of artisans No. of unemployed artisans successfully completing through Learnerships RPL Apprenticeships, NCV 85--85Not achieved The completion of artisan was delayed by the legal dispute between Service provider and MERSETA which led to suspension of accreditation. Management has intensified the process of working with FET colleges. IndicatorTargetActualVarianceComments 7.2.4 Artisans trained and qualified through different learning routes, learnerships, apprenticeships, RPL and NCV (3442)

24. 3.2 Programme: Skills implementation and Monitoring IndicatorTargetActualVarianceComments 7.2.5 Provide Workplace Integrated learning, Internships and workplace experience to youth focussing on scarce and critical skills by 2015/16 No. of Learners entering WIL:FET 1000FET: 703-297Not achieved This was the first experience and actually implementation was delayed by the planning process which was necessary to make sure this long term intervention went well. No. of learners entering WIL: Universities 350--350Not achieved This was the first experience and actually implementation was delayed by the planning process which was necessary to make sure this long term intervention went well. No. of learners successfully completing WIL: FET 500--500Not achieved Learners will complete during 2014/15

25. 3.2 Programme: Skills implementation and Monitoring No. of learners successfully completing WIL: Universities 175--500Not achieved Learners will be completing during 2014/15 No. of learners enrolled for internships programmes 150177+27Over-achieved Due to the implementation of the catch up plan No. of learners enrolled for workplace experiential learning programmes 150703+553Over-achieved Due to the implementation of the catch up plan No of learners completing internship programmes 7537-38Not Achieved This was the first experience and implementation was delayed by the planning process which was necessary to make long sure long term intervention went well. IndicatorTargetActualVarianceComments 7.2.5 Provide Workplace Integrated learning, Internships and workplace experience to youth focussing on scarce and critical skills by 2015/16

26. 3.2 Programme: Skills implementation and Monitoring IndicatorTargetActualVarianceComments 7.2.6 Provide Adult Language and Numeracy skills to employed and unemployed learners to enable additional training No. of learners enrolled in AET programmes 5026-24No achieved The project for the Department of Justice was not implemented. The number of learners approved was 50 No. of learners successfully complementing AET programmes 25--25Not achieved No learners were certificated. Programmes still ongoing. SASSETA - your partner in skills development

27. 3.2 Programme: Skills implementation and Monitoring (cont.) IndicatorTargetActualVarianceComments 7.2.7 Provide Adult Language and Numeracy skills to employed and unemployed learners to enable additional training No. of learners in rural areas reached 15000 career guides to learners in rural areas 10304-4696Not achieved The target could not be met as a result of poor attendance of learners. Furthermore SASSETA was unable to roll-out exhibitions due to cost cutting measures. SASSETA - your partner in skills development

28. 3.2 Programme: Skills implementation and Monitoring IndicatorTargetActualVarianceComments 7.2.8 Support training needs for Trade Unions, NGOs, CBOs, NLPE, SMME and Cooperatives No of Trade Unions4--4Not achieved The Discretionary Grant rate offered is set to be reviewed as providers find it unattractive NGOs44NoneAchieved Various NGOs were supported and going forward we are intending to expand support especially in rural areas CBOs11NoneAchieved The strategy is to expand into the rural areas and in people living with disabilities

29. 3.2 Programme: Skills implementation and Monitoring IndicatorTargetActualVarianceComments 7.2.8 Support training needs for Trade Unions, NGOs, CBOs, NLPE, SMME and Cooperatives NLPEs42-2Achieved The strategy is to expand into the rural areas and in people living with disabilities SMMEs600496-104Achieved The strategy is to expand into the rural areas and in people living with disabilities Cooperatives supported22NoneAchieved SASSETA - your partner in skills development

30. IndicatorTargetActualVarianceComments 7.2.9 Reviewed, aligned and registered QCTO qualification in place by 2015/16 in partnership with employers No. of qualifications registered with QCTO. 4 qualifications registered with QCTO --4Not achieved The process of finalising qualifications proved to be a challenge. 3.2 Programme: Skills implementation and Monitoring SASSETA - your partner in skills development

31. IndicatorTargetActualVarianceComments 7.2.10 Bursary awarded to learners for study on NQF Level 6 and above addressing scarce and critical skills shortages No of employed learners awarded bursaries entered. 10060-40Not achieved The target for bursaries was not achieved due to slow learner participation. Some learners only registered after they received the bursary awards No. of employed learners successfully completing bursaries 50--50Learners still studying 3.2 Programme: Skills implementation and Monitoring SASSETA - your partner in skills development

32. IndicatorTargetActualVarianceComments 7.2.10 Bursary awarded to learners for study on NQF Level 6 and above addressing scarce and critical skills shortages No. of unemployed learners entering bursaries 250148-102Not achieved The target for bursaries was not achieved due to slow learner participation. Some learners only registered after they received the bursary awards No. of unemployed learners successfully completing bursaries 25--25Learners still studying 3.2 Programme: Skills implementation and Monitoring SASSETA - your partner in skills development

33. IndicatorTargetActualVarianceComments 7.2.11 Flagship programmes incorporating management of HIV/AIDS implemented, targeting learners with disabilities from rural areas, women and youth No. of learners registered in flagship programmes 210 NoneAchieved The strategy is to expand into the rural areas to people living with disabilities No. of learners successfully complementing flagship programmes 10529-79Not achieved Projects still ongoing No of learners placed as a result of the interventions, 50% of learners being placed 105--105Not achieved Placement affected by several factors including PSIRA registration, willingness of employers and learners obtaining jobs elsewhere 3.2 Programme: Skills implementation and Monitoring

34. IndicatorTargetActualVarianceComments 7.2.12 Monitored and evaluated discretionary grants projects Quarterly reports generated for all projects 4 Quarterly Monitoring Reports -Achieved 3.2 Programme: Skills implementation and Monitoring SASSETA - your partner in skills development

35. Component2011/122012/132013/14 Annual Financial Statements Qualified Discretionary Grants; Payables; and Commitments Qualified Discretionary Grants; Payables; Commitments; and Admin Expenditure Unqualified Performance Information: Smart Criteria Disclaimer Presentation; Consistency; and Measurability (3) Indicators not Verifiable Qualified Presentation; Consistency; and Measurability (3) Unqualified Performance Information: Reliability of Information Disclaimer Accuracy; and Achievements not verifiable Disclaimer Achievements not verifiable Unqualified Comparisons / 3 years

36. Auditor’s report by the office of the Auditor General of South Africa SASSETA - your partner in skills development Portfolio Committee 2014

37. Auditor’s report is contained on pages 53 to 55 SASSETA - your partner in skills development Portfolio Committee 2014

38. “In my opinion, the financial statements present fairly, in all material respects, the financial position of SASSETA as at 31 March 2014, and its financial performance and its cash flows for the year then ended in accordance with the SA Standards of GRAP and the requirements of the PFMA and SDA.” Audit Report – Compliance SASSETA - your partner in skills development

39. Audit Report – Compliance (cont.) (1) Annual financial statements The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework (GRAP) as required by section 55(1)(a) and (b) of the PFMA. Material misstatements of the following were identified and corrected: provisions, payables and commitments SASSETA - your partner in skills development

40. (2) Internal Audit Internal audit did not evaluate the effectiveness and efficiency of controls and did not make recommendations for its enhancement and improvement, as required by treasury regulation 27.2.10. The previous Internal Auditors were released and due to the procurement process replaced late in the year resulting in execution of the work also commencing late. Audit Report – Compliance (cont.)

41. (3) Procurement A construction contract was awarded to contractors that did not qualify for the contract in accordance with CIDB regulation 17 (Appointment of a supplier not meeting the grading requirements). Audit Report – Compliance (cont.) SASSETA - your partner in skills development

42. The above non-compliances are attributable to the following Internal Control Deficiencies: 1.Leadership: Lack of stability in the leadership 2.Financial & Performance Management: Lack of adequate reviews throughout the year 3.Governance : Internal Audit not functional during the year under review Audit Report – Compliance (cont.) SASSETA - your partner in skills development

43. Annual Financial Statements for the year ended 31 March 2014 SASSETA - your partner in skills development Portfolio Committee 2014

44. Revenue categories, pg 65 of the AR SASSETA - your partner in skills development

45. Expenses categories, pg 65 of the AR SASSETA - your partner in skills development

46. Net surplus, pg 65 of the AR

47. Discretionary reserves, pg 67 of the AR SASSETA - your partner in skills development

48. Total assets, pg 66 of the AR

49. Total liabilities, pg 66 of the AR SASSETA - your partner in skills development

50. Current assets vs. liabilities

51. In 2014/15 and in the medium term we will strive for the following:  Improved WIL placement  Opening offices in TVET’s across the country  Committing to artisan development in the Decade of Artisans  Conducting impact assessments so we can measure our impact Conclusion SASSETA - your partner in skills development

52. In 2014/15 and in the medium term we will strive for the following:  This will also assist us in the review of the programmes and their relevance  Stakeholder relationships remain our primary focus  Partnerships are the key driver in all we do and are the bricks and mortar of our organisation Conclusion SASSETA - your partner in skills development

53. Conclusion SASSETA - your partner in skills development The organisation, albeit stable, still faces some challenges. The turnaround strategy will address some of the challenges:  Systems for HR and SCM  Discretionary grants  Improving monitoring and evaluation  Increasing research capacity  Improving the ICT Governance and environment

54. Questions SASSETA 2013/14 Annual Report Thank you SASSETA - your partner in skills development Portfolio Committee 2014