1. Annual Budget and Business Plan 2019/20
PRESENTED BY : Mr Asif Jhatam
Chairperson :FINCOM
29 November 2019

2. Vision
To serve, to deliver, for renewal, for prosperity.
Mission
Facilitation of quality skills development for employment and entrepreneurship in the Services Sector for national economic growth.
Values
Accountability
Innovation 
Integrity 
Professionalism 
Responsiveness

3. Developments Impacting Planning#
Goal
Goal Statement 1
Improve the stock of skills
Increase transformation, level and capacity of skills available within the Services Sector labour market through successful certification of learners in occupational qualifications by 2019/20 2
Improve the flow of skills
Improve access to and quality of relevant occupational qualifications through skills development infrastructure and capacitation of providers and workplaces as learning spaces by 2019/20 3
Strengthen the Services Sector’s capabilities
Strengthen partnerships and collaboration with public and private intermediaries to harness sector capabilities and extend public value 4
Strengthen the Services SETA’s capabilities
Optimise the Services SETA’s service delivery through strengthening policies, processes, systems, knowledge and competencies
Developments Impacting Planning

4. Developments Impacting Planning
Strategic Plan aligned to the 7-year MTEF period, from 2015/16 – 2021/22
Improved alignment of strategic risks to the strategic objectives
Improved alignment to budget in the Strategic and Annual Performance Plans and expenditure trends
Improved alignment of the Pivotal List in the Strategic, Sector Skill and Annual Performance Plans
Stakeholder Relations elevated to improve fulfilment of service delivery

5. Services SETA Sector Skills Plan Priority Action 2019/20
Alignment and review of Services SETA qualifications
Promoting access to skills development
Entrepreneurship and Cooperative Development
Mobilization of industry to participate in work-based learning programmes

6. Part A: Annual Budget

7. Income and Expenditure Estimates for the period 2018/19-2021/22
Annual Budget
Services SETA
Income and Expenditure Estimates for the period 2018/ /22
Income by Economic Classification
Actual
Budget (Original)
Adjusted Appropriation
Budget
R thousand
2017/18
2018/19
2019/20
Levies Received
1,504,855
1,684,820
1,636,526
1,685,622
Levies Received: Administration 10.5%
197,363
221,133
214,794
221,238
Levies Received: Employer Grants 20%
378,595
421,205
409,132
421,405
Levies Received: Discretionary Grants 49.5%
928,897
1,042,482
1,012,600
1,042,978
Other Income
193,414
148,809
73,685
66,317
Penalties and Interest on Levies
56,140
Investment Income
131,361
5,913 -
TOTAL INCOME
1,698,269
1,833,629
1,710,211
1,751,938
All Programmes by Economic Classification
Administrative expenses
309,502
337,746
285,498
217,809
Compensation of Employees
67,764
75,408
66,867
73,712
Goods and Services
241,738
262,338
218,630
144,097
Mandatory Grants - Transfers and subsidies to:
166,652
142,205
165,956
172,776
Discretionary Grants
2,073,303
2,006,761
1,904,398
1,577,979
Total expenditure (Excluding CAPEX)
2,549,457
2,486,712
2,355,852
1,968,564

8. Adjusted Appropriation
Annual Performance Plan Budget
Expenditure by Annual Performance Plan
Medium-term expenditure estimate
Actual Expenditure
Budget (Original)
Adjusted Appropriation
Budget
R thousand
2017/18
2018/19
2019/20
1. Administration
614,116
565,660
771,124
568,078
2. Planning
176,163
160,860
184,342
189,713
3. Skills Development
1,756,961
1,758,899
1,395,258
1,206,261
4. Quality Management
2,217
1,294
5,128
4,513
TOTAL
2,549,457
2,486,712
2,355,852
1,968,564

9. (Annual Performance Plan 2019/20)
Part B: Business Plan
(Annual Performance Plan 2019/20)

10. Standardised Programme Structure
Programme 1: Administration
1.1 Maintain sound reporting
1.1 Strengthen human resources and systems adequacy
1.3 Promote Accountable governance
Programme 2: Skills Planning
2.1 Conduct credible research to inform Planning
2.2 Promote industry investment and strengthen workplace mentorship

11. Standardised Programme Structure
Programme 3: Learning Programmes
3.1 Grow infrastructure and rural development
3.2 Promote supply and demand partnerships
3.3 Promote enterprise development
3.4 Prioritise Services SETA investment
3.5 Promote stakeholder participation
Programme 4: Quality Assurance
4.1 Strengthen and assure quality of supply
4.2 Improve efficiency in certification

12. Priority Programmes Number of active projects 2017/18 Results
2018/19 Targets
2019/20 Targets
Rural Development 5
Infrastructure 15 10
Number of new Supply and Demand Partnerships
2017/18 Results
2018/19 Targets
2019/20 Targets
TVET Colleges 12 5
Universities 4 3
Employers
192
500
200

13. Priority Programmes Nature of entities targeted 2017/18 Results
2018/19 Targets
2019/20 Targets
Cooperatives
333
300
Small and Micro Enterprises
351
NGOs and CBOs
104
100
Trade Unions 11 4

14. Priority Programmes Enrolment Targets by learning intervention
2017/18 Results
2018/19 Targets
2019/20 Targets
Learnerships
23,227
13,500
18,000
Bursaries
4,017
3,500
Skills programmes
5,945
2,900
4,734
Internships
9,114
4,600
7,590
Artisans
2,254
2,500
RPL
1,021
500
AET
1,064
Candidacies 50
150
100
TOTAL
46 692
28 150
37 824

15. Priority Programmes Accrediting and monitoring providers
2017/18 Results
2018/19 Targets
2019/20 Targets
% SDP applications accredited
85%
80%
% unsuccessful SDP accreditation applicants capacitated
67%
40%
% of external moderations successfully conducted -

16. 2019/20 Annual Performance Plan
Learner Enrolment linked to Budget
Enrolment Targets and budget by leaning intervention
2019/20 Annual Performance Plan
Unit Costs
2018/19 APP Target
Proposed Target
Commitment
Learnerships
13,500
18,000
742,500,000
Employed
20,000
1,500
3,000
60,000,000
Unemployed
45,500
12,000
15,000
682,500,000
Bursaries
3,500
283,750,000
50,000
500
25,000,000
86,250
258,750,000
Candidacies
60,950
150
100
6,095,000
Skills programmes
2,900
4,734
38,345,400
8,100
2,500
28,350,000
400
1,234
9,995,400
Internships
165,700
4,600
7,590
395,519,000
Unemployed entering internships
44,100
4,090
180,369,000
TVET Student Placement
65,500
1,100
2,000
131,000,000
University Student Placement
56,100
84,150,000
Artisans
139,300,000
Apprenticeship and trade test
55,000
137,500,000
Assessment and trade test
4,500
1,800,000
RPL
6,500
3,250,000
AET
TOTAL
28,150
37,824
1,612,009,400

17. Thank you