1. 23 April 2005 PRESENTED BY: SSW NKOSI CHIEF EXECUTIVE OFFICER - LGSETA
Presentation to the Portfolio Committee on Provincial and Local Government ANNUAL REPORT (APRIL 2004 – 31 MAY 2005)
23 April 2005
PRESENTED BY: SSW NKOSI
CHIEF EXECUTIVE OFFICER - LGSETA
2018/11/07

2. FRAMEWORK OF PRESENTATION
INTRODUCTION & OVERVIEW
HIGHLIGHTS & LOWLIGHTS
GOVERNMENT STRATEGIC PROJECTS
REVENUE
CONTRIBUTION TO GOVT. STRATEGIC PROJECTS
CHALLENGES
OPPORTUNITIES
CONCLUSION
2018/11/07

3. INTRODUCTION & OVERVIEW
OUR MANDATE:
To manage and coordinate training and skills development within the local government sectors.
The LGSETA should bring skills to the employed and those wanting to be employed in the sector.
2004/5: A year of consolidation:
Make stronger.
More solid.
Combine into a single unit.
2018/11/07

4. WHY?
We did not concentrate on the failures, we were keen to learn from the mistakes of the past and use the experience gained to accelerate implementation.
The Annual Report will bear testimony
2018/11/07

5. HIGHLIGHTS LEARNERSHIPS REGISTERED
25 LEARNERSHIPS REGISTERED & 8 SKILLS PROGRAMS
49% OF REGISTERED LEARNERSHIP IMPLEMENTED
A TOTAL OF 357 APPRENTICES INDENTURED IN VARIOUS APPRICESHIPS
TOTAL OF LEARNERS INDENTURED IN LEARNERSHIP
630 COUNCILLORS TRAINED
A TOTAL OF 965 LEARNERS ENROLLED IN SKILLS PROGRAMS
540 ASSESSORS TRAINED
195 RPL ADVISORS TRAINED
SCOPING EXERCISE TRAINING FOR TRADITIONAL LEADERS UNDERTAKEN
ABET TRAINING
2018/11/07

6. HIGHLIGHTS (Cont….) TRAINING PROVIDER ACCREDITATION
ALL NINE (9) PROVINCES A PROVIDER ON VARIOUS LEVELS OF ACCREDIATATION
Province
Provisionally Accredited
Registered
Approved
Fully
Accredited
Gauteng 8 5
Limpopo 3 4 1 2
Mpumalanga
KwaZulu Natal
Western Cape
North West
Northern Cape
Free State
Eastern Cape 6
2018/11/07

7. LOWLIGHTS ASSESSOR TRAINING
54 OUT OF 540 TRAINED ASSESSORS WERE DECLARED COMPETENT
COUNCILLOR DEVELOPMENT PROGRAMME
423 OUT 630 DECLARED COMPETENT
47 RECIEVED CERTIFICATE OF ATTENDANCE
160 DROPPED OUT
TRADITIONAL LEADERSHIP TRAINING
NO TRAINING UNDERTAKEN DUE TO UNAVAILABILITY OF CURRICULUM FRAMEWORK
2018/11/07

8. GOVT STRATEGIC PROJECT
COMMUNITY DEVELOPMENT WORKERS 2804 LEARNERS R MILLION
LOCAL GOVERNMEMNT LEADERSHIP ACADEMY
SIYAYA LEARNERSHIP
EPWP
PROJECT CONSOLIDATE
PROJECT PHUMELELA JHB METRO
ISIQALO(PLANNED)
2018/11/07

9. Key programmes / projects
STRATEGIC FRAMEWORK FOR EFFECTIVE BUSINESS PLANNING
Organizational Capacity
Internal Policies and Systems
Marketing & Communication
Governance
Provincial Capacity
Quality Training
Increased Capacity
Delivery
Priority Learning & skills programme implementation
STRATEGIC PROJECTS
ABET
P/management
SDF training, etc
Priority Qualifications and learnerships developed
Increase quality & quantity of workplace participation
Quality Assurance
Key programmes / projects
2018/11/07
SSP Review: Key Sector Needs

10. REVENUE
National Skills Fund and Donor Funding
Conditional funds of R24, 717m were received from the National Skills Fund for the purposes of the Community Development Programme. Interest accrued – R0, 363m
Recognised as a liability until the conditions attached were met. During the year,
R eligible project expenses were incurred and a corresponding amount was recognised as revenue
At year end, R continues to be accounted for as a liability until the remaining conditions attached have been met
Other Income
Comprises of penalties and interest paid by employers in the sector - R1, 288m (2004: R0, 910m).
Investment Income
Decreased by 21% to R15, 038m (2004: R18, 962m). The weighted average interest rate on short term bank deposits was 8, 37% (2004: 11, 4%).
Investment Income, penalties and interest are immediately allocated to the Discretionary Fund and utilised for Discretionary Grants and Special Projects.
2018/11/07

11. REVENUE (Cont….) Skills Development Levy Income (80%)
Income from Skills Development Levies including R0, 884m (2004: Nil) levies paid by government departments (DWAF) for the year increased by 8% to R145, 103m (2004: R134, 221m)
The increase is in the main attributed to the annual increment in salaries in the local government sector
2018/11/07

12. MANDATORY GRANTS
Mandatory Grants Disbursed - R64, 521m as indicated below:
M1 Grants for prior Scheme Years R 9, 997m
M2 Grants for prior Scheme Years R48, 027m
M1 Grants for 2005 Scheme Year R 6, 497m
Total Mandatory Grants disbursed R64, 521m
Discretionary Grants and Special Projects R36, 621m
Total Grants and Special Project disbursed R101, 142m
(2004:R132, 930m).
2018/11/07

13. MANDATORY GRANT INCOME AND DISBURSEMENTS
The following graph illustrates the status of Income and Disbursements for Mandatory Grants by Grant Type.
2018/11/07

14. DECREASE IN GRANT DISBURSEMENTS
Multi year agreements have been entered into for Learnership grants and projects and a provision has not been raised for future obligations
Implementation Grants are generally paid in the next financial year
One Metropolitan Municipality did not submit a training report (M2 Grant) for the 2003/2004 Scheme Year.
The Minister of Labour in Government Gazette No , Regulation Gazette No dated 18 July 2005 extended the date for all current and prior year submissions to 30 September 2005
Any submissions received after 30 September 2005 can not be entertained – unclaimed Mandatory grants will be forfeited and will accrue to the Discretionary Grant Reserve.
2018/11/07

15. ADMINISTRATION - INCOME AND EXPENDITURE
Income for Administration was R16, 529m (2004: R14, 786m) (Levies paid by Government dept. included (DWAF) R0, 774m (2004: Nil) Total expenditure was R16, 452m (2004:R13, 878m) representing an increase of 19% The increase in operational expenditure is in the main attributed to the establishment of three additional provincial offices and the appointment of additional staff.
2018/11/07

16. RESERVES Administration Reserves
The administration surplus in the current year of R1, 723m (2004:R1, 646m) is a result of the retrospective adjustments made by SARS
Surplus funds in excess of the depreciated value of assets will be moved to the Discretionary Fund Reserve on approval of the Accounting Authority in the preceding financial year
Employer Grant Reserves
The reserves of R175, 570m (2004:R129, 867m) is the net result of the current year transactions
Discretionary Grant Reserves
Discretionary Grant Reserves are R71, 596m (2004: R73, 541)
Of the balance of R 71,596 million available in the Discretionary Reserve at the end of March 2005, R62,913 million has been approved and allocated for future projects and skills priorities as indicated in the commitment note in the Annual Financial Statements (Note 17.1) The balance of R8, 683 will be incorporated in the indicative budget aligned with the NSDS Objectives and the Strategic Plan for the next financial year.
2018/11/07

17. CASH AND CASH EQUIVALENTS
R248, 852m (2004: R173, 988m)
Net increase R74, 864 – Mainly attributed to the levy income for Mandatory Grants for the 2005 Scheme Year.
Includes balance of NSF fund R17, 260m
2018/11/07

18. CONTINGENCIES
In terms of the PFMA, all surplus funds as at year-end may be forfeited to National Treasury. As at year-end, this amount could not be quantified as National Treasury has not defined surplus funds. A request for the accumulation of the reserve funds has been submitted to National Treasury. At 31 March 2005, no formal approval has been obtained from National Treasury to retain surplus funds.
2018/11/07

19. CONTRIBUTIONS OF THE LGSETA ON NATIONAL GOVERNMENT STRATEGIC PROJECTS:
Expanded Public Works Programme:
2018/11/07

20. Joint Programme: Labour Intensive Construction training:
A joint steering committee has been established consisting of the following parties : DPW/ CETA/ LGSETA/ DPLG/ Salga
The project was initiated by the Dept of Public Works
The project is to train municipal engineers, and municipal technical services staff in the design, management, contracting and implementation of labour intensive infrastructure programmes, implemented through the Municipal Infrastructure grants.
LGSETA has set aside an amount of R 13 million over a three year period to support the implementation of the Expanded Public Works programmes.
LGSETA is the contracting authority for the training programme
Value of the current training contract is R 4,5 million
In terms of a memo of understanding between CETA and LGSETA training is taking place against CETA registered unit standards at NQF levels 5 and 7
2018/11/07

21. Training Progress to Date:
Training commenced April 2005
First phase focused on NQF level 5 training for those municipalities already awarded municipal infrastructure grants, metros and big cities
Second phase focused on district municipalities and on those municipalities that are in the process of having their municipal infrastructure grants approved and relevant provincial departments eg roads, housing etc
Third phase to commence March/ April 2006 on NQF level 7 training
To date, 432 people have been trained
Of the number trained, 199 people have been assessed as competent, 6 people have been assessed and deemed as not yet being competent
227 people still have to be assessed
Assessment takes place upon the submission of a portfolio of evidence after the completion of the theoretical component of the training.
CETA is responsible for quality assurance
2018/11/07

22. Training numbers by Province:
No. of Trainees:
Eastern Cape 81
Free State 11
Gauteng 36
KZN 52
Limpopo 49
Mpumalanga 61
N Cape
Not yet started
North West
Western Cape
142
2018/11/07

23. CHALLENGES
To achieve Government targets qualitatively rather than quantatively.
Not just numbers ,but sustainable life-enhancing development.
To make stakeholders develop an even greater appreciation to the reasons for the existence of the SETA.
To rise to the demands of the increased delivery within the sector.
To align our programmes to keep up with the changes in legislation and still relocate to the needs of the sector
2018/11/07

24. OPPORTUNITIES Better understanding of our statutory mandate.
We have a strategy that is synthesized and synchronized with the mission of the NSDS.
2018/11/07

25. CONCLUSION
The LGSETA have aligned its work and resources to the skills needs of the Local Government sector for effective delivery and implementation.
As the political leadership we support the strategic framework to guide the Seta towards the desired
vision.
2018/11/07

26. Questions?
2018/11/07