1. PRESENTATION ON ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS FOR – CHIETA AGM 9 NOVEMBER 2017 PRESENTED BY: Farhad Motala

2. OUTLINE OF PRESENTATION
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
OUTLINE OF PRESENTATION
2016\17 Annual Report – Annual Financial Statements and Audit Results
Allocation of Net Deficit for the year ended 31 March 2017
Maximising ROI - Average cost of learning programs for the year ended 31 March 2017
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 with clean audit outcome
6.2% increase in SDL income from R443.9 million for the year ended 31 March 2016 to R471.2 million for the year ended 31 March 2017
Total Revenue increased by 6.1% from R484.7 million for the year ended 31 March 2016 to R514.3 million for the year ended 31 March 2017
SDL income escalated by annual equivalent average of 7.4% for the last 5 years
SDL income escalated by annual equivalent average of 20% for the entire period since inception

4. Skills Development Levy income from 2013 - 2017
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Skills Development Levy income from

5. ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
Grant and Project expenses increased by 9.1% from R442.6 million in to R482.7 million in
Grant and project expenses represented 118% of grant levy income received (R409.4 million) for
Average grant and projects disbursement rate of over 115% over the last 5 years ( )
Average grant and projects disbursement rate of over 108% over the entire 7 year NSDS 111 period ( )
DG reserves – 100% committed as at 31 March 2017

6. SDL Income vs Employer Grant and Project Expenses 2013 -2017
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
SDL Income vs Employer Grant and Project Expenses

7. ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
Over R38 million (Return on investment – R23.8 Million, Admin savings – R4.4 Million, and Unclaimed MG – R10.4 Million) transferred to DG Reserve for strategic sector skills priorities
Administration expenses remained within 10.5% legislated provision – R4.4 Million savings in admin in
Administration savings of over R23 Million for the last five years ( ) - transferred to DG Reserve for sector skills priorities
Since inception R56.8 Million administration savings transferred to DG reserve
Consultancy and service provider fee reduction of over 21%, from R2.2 million in to R1.7 Million in

8. Administration income vs expenditure 2013 - 2017
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Administration income vs expenditure

9. 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 9.6 % (R25.9 Million) from R271 Million in to R245 Million in
93% of DG and project funds was utilised in PIVOTAL programs and 7% in NON PIVOTAL programs
Mandatory Grant (MG) expense represented 91% of funds received for MG’s
Cash outflow on Grant and Project Payments increased by 16.7% from R432 Million in to R503 Million for
Cash and cash equivalents reduced by 15.3% (R54 Million) from R358 Million in to R303 Million in

10. 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
2016/17
R'000
Net Deficit
(25,938)
Administration Savings
4,422
Mandatory Grant Surplus
10,435
Discretionary Grant Deficit
(40,795)

11. DG Program – Sector Skills / NSDS Priority Expenditure 2016/17 (R’000)
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
DG Program – Sector Skills / NSDS Priority
Expenditure 2016/17
(R’000)
No. of Beneficiaries
Average Cost per Learner
% of Total DG expenditure
Work Integrated Learning
R46,698
3 366
R13,874
13.3%
Learnerships
R115,888
7 991
R14,502
39.5%
Artisans / Apprenticeships including RPL
R73,201
2 729
R20.039
16.8%
Bursaries
R53,170
2 034
R26,141
16.7%
Skills Programs
R16,491
8 768
R1,881
5.3%
ABET
R5,780
588
R9,830
1.6%
TVET Support (Partnerships and lecturer capacitation)
R1,643 88
R18,669
0.6%

12. 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
R53,127
3 226
R16,468
19.5%
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%
TVET Support (Partnerships and lecturer capacitation)
R3,254
195
R16,688
1.2%

13. 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
Promoting and maintaining a culture of sustained delivery of DG and Project deliverables
Remaining relevant as the Authority on skills development
Maximum 7.5% admin threshold for DG and project management – target spending levels must be achieved

14. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Discretionary Grant Programs
Closing balance 31 March 2017
Program
R'000
Non Pivotal
Adult Basic Education and Training (ABET)
1,494
Pivotal
Apprentice / Artisan training and development
30,505
Recognition of Prior Learning (RPL)
21,108
Further Education and Training (FET)
1,489
Graduate Development 28
Bursaries
40,365
Skills Programmes
16,906
Workplace Experience / WIL
13,316
Work Placement / Employment Creation
10,424
Learnerships
91,016
Other Occupationally directed programs
368
Total
227,019

18. 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

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