1. PRESENTATION ON ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS FOR – CHIETA AGM 26 OCTOBER 2016 PRESENTED BY: Farhad Motala

2. OUTLINE OF PRESENTATION
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
OUTLINE OF PRESENTATION
2015\16 Annual Report – Annual Financial Statements and Audit Results
Allocation of Net Deficit for the year ended 31 March 2016
Maximising ROI - Average cost of learning programs for the year ended 31 March 2016
Analyses of Income and Expenditure over NSD 111 period ( )
External Auditor’s (AGSA) final audit assessments of Leadership, Financial and performance management and Governance of CHIETA
Appreciation

3. ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
Unqualified audit opinion and clean audit outcome
4% increase in SDL income from R426.6 million for the year ended March 2015 to R443.5 million for the year ended March 2016
Total Revenue increased by 4% from prior year
SDL income escalated by annual equivalent average of 21% for the entire period since inception
Grant and Project expenses increased by 11% from R397 million in to R442 million in
Grant and project expenses represented 115% of grant levy income received (R385 million) for

4. ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
Average grant and projects disbursement rate of over 94.6% over the entire NSDS 111 period ( )
DG reserves – 98.3%committed as at 31 March 2016
Over R37 million (Return on investment – R21.9 Million, Admin savings – R750K, and Unclaimed MG – R14,8 Million) transferred to DG Reserve for strategic sector skills priorities
Administration expenses remained within 10.5% legislated provision
Consultancy and service provider fee reduction of over 29%, from R3.1 million in to R2.2 Million in

5. ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
Committed DG Reserves decreased by 22 % (R15.3 Million) from R286 Million in to R271 Million in
89% of DG and project funds was utilised in PIVOTAL programs
Mandatory Grant (MG) expense represented 87% of funds received for MG’s (20%)
Cash outflow on Grant and Project Payments increased by 8.1% from R399 Million in to R432 Million for

6. ALLOCATION OF NET DEFICIT FOR THE 2015-16 FINANCIAL YEAR
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ALLOCATION OF NET DEFICIT FOR THE FINANCIAL YEAR
2015/16
R'000
Net Deficit
(15,355)
Administration Savings
750
Mandatory Grant Surplus
14,842
Discretionary Grant Deficit
(30,948)

7. DG Program – Sector Skills / NSDS Priority Expenditure 2015/16 (R’000)
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
DG Program – Sector Skills / NSDS Priority
Expenditure 2015/16 (R’000)
No. of Beneficiaries
Average Cost per Learner
% of Total DG expenditure
Work Integrated Learning
R62,668
2 087
R30,027
23.0%
Learnerships
R85,568
5 811
R14,725
31.4%
Artisans / Apprenticeships
R44,468
1 864
R23,856
16.3%
Bursaries
R43,095
1751
R24,611
14.6%
Skills Programs
R24,437
6792
R3,598
9.0%
ABET
R2,053
427
R4,807
0.8%
Recognition of Prior Learning (RPL)
R8,659
1362
R6,357
3.2%
TVET Support (Partnerships)
R3,254
195
R16,688
1.2%

8. DG Program – Sector Skills / NSDS Priority Expenditure 2014/15 (R’000)
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
DG Program – Sector Skills / NSDS Priority
Expenditure 2014/15 (R’000)
No. of Beneficiaries
Average Cost per Learner
% of Total DG expenditure
Work Integrated Learning
R49,463
1766
R28,008
20%
Learnerships
R87,786
5 671
R15,480
35.5%
Artisans / Apprenticeships (Including RPL)
R45,211
2 294
R19,708
18.3%
Bursaries
R25,669
948
R27,076
10.4%
Skills Programs
R21,649
8 559
R2,529
8.8%
ABET
R2,655
795
R3,340
1.1%
Career Guidance
R573
4291
R574
0.2%

9. Skills Development Levy income from 2011 - 2016
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Skills Development Levy income from

10. Administration income vs expenditure 2011 - 2016
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Administration income vs expenditure

11. SDL Income vs Employer Grant and Project Expenses 2011 -2016
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
SDL Income vs Employer Grant and Project Expenses

12. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Key Challenges
Innovative and timely solutions to balance and support emerging national priorities and industry needs
Fostering and maintaining a culture of sustained delivery of DG and Project deliverables
Remaining relevant as the Authority on skills development based on the NSLP:2015
Maximum 7.5% admin threshold for DG and project management – target spending levels must be achieved

13. Committed Balances of Discretionary Grant Projects at 31 March 2016
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Committed Balances of Discretionary Grant Projects at 31 March 2016
Category
Discretionary Grant Programs
Closing balance 31 March 2016
R'000
Non PIVOTAL
Adult Basic Education and Training (ABET)
1,633
PIVOTAL
Apprentice / Artisan training and development
36,831
Recognition of Prior Learning (RPL)
16,905
Further Education and Training (FET)
1,890
Bursaries
34,676
Internships
119
Skills Programmes
14,879
Workplace Experience / WIL
27,464
Work Placement / Employment Creation
25,097
Learnerships
85,002
Other Occupationally Directed Programs
219
TOTAL
244,714

14. Actual achievement against targets per baseline indicator for 2015-16
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Actual achievement against targets per baseline indicator for

15. CHIETA Audited Performance Information 2015/16
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA Audited Performance Information 2015/16
Performance Indicator(Learnerships, Skills Programmes, bursaries and internships)
Target
Actual
Percentage variance
Employed learners entered
5360
6247
116%
Employed certificated
2655
3586
135%
Unemployed entered
4270
8450
198 %
Unemployed certificated
2135
3859
181%

16. CHIETA Audited Performance Information 2015/16
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA Audited Performance Information 2015/16
Performance Indicator
Target
Actual
Percentage variance
Artisans entered
1720
1864
108%
Artisans certified
444
792
178%
TVET College Partnerships 18 20
111%
TVET Workplace experience entered
700
937
134%

17. CHIETA Audited Performance Information 2015/16
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA Audited Performance Information 2015/16
Performance Indicator
Target
Actual
Percentage variance
Support to Co-operatives, NGOs, worker initiated training and small businesses
152
210
138%
Support to large, medium and small companies
689
791
115%

21. APPRECIATION Governing Board and CHIETA Board Committees
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
APPRECIATION
Governing Board and CHIETA Board Committees
CEO, Management and Staff
Audit Committee, External and Internal audit
CHIETA Stakeholders

22. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
THANK YOU