PRESENTATION ON ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS FOR 2015-16 – CHIETA AGM 26 OCTOBER 2016 PRESENTED BY: Farhad Motala
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 year ended 31 March 2016 • Analyses of Income and Expenditure over NSD 111 period (2011-2016) • External Auditor’s (AGSA) final audit assessments of Leadership, Financial and performance management and Governance of CHIETA • Appreciation
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 • 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 2014-15 to R442 million in 2015-16 • Grant and project expenses represented 115% of grant levy income received (R385 million) for 2015-16
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 (2011-2016) • 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 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 2014-15 to R2.2 Million in 2015-16
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 2014-15 to R271 Million in 2015-16 • 89% of DG and project funds was utilised in PIVOTAL programs 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 2014-15 to R432 Million for 2015-16
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ALLOCATION OF NET DEFICIT FOR THE 2015-16 FINANCIAL YEAR 2015/16 R'000 Net Deficit Net Deficit (15,355) (15,355) Administration Savings 750 Mandatory Grant Surplus 14,842 Discretionary Grant Deficit (30,948)
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability DG Program – Expenditure No. of Average Cost % of Total DG Sector Skills / 2015/16 Beneficiaries per Learner expenditure NSDS Priority (R’000) Work Integrated R62,668 2 087 R30,027 23.0% Learning Learnerships R85,568 5 811 R14,725 31.4% Artisans / R44,468 1 864 R23,856 16.3% Apprenticeships Apprenticeships 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 R8,659 1362 R6,357 3.2% Prior Learning (RPL) TVET Support R3,254 195 R16,688 1.2% (Partnerships)
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability DG Program – Expenditure No. of Average Cost % of Total DG Sector Skills / 2014/15 Beneficiaries per Learner expenditure NSDS Priority (R’000) Work Integrated R49,463 1766 R28,008 20% Learning Learnerships R87,786 5 671 R15,480 35.5% Artisans / Artisans / R45,211 R45,211 2 294 2 294 R19,708 R19,708 18.3% 18.3% Apprenticeships (Including RPL) 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%
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability Skills Development Levy income from 2011 - 2016
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability Administration income vs expenditure 2011 - 2016
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability SDL Income vs Employer Grant and Project Expenses 2011 -2016
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 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
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability Committed Balances of Discretionary Grant Projects at 31 March 2016 Closing balance Category Discretionary Grant Programs 31 March 2016 R'000 Non PIVOTAL Adult Basic Education and Training (ABET) 1,633 PIVOTAL PIVOTAL Apprentice / Artisan training and development Apprentice / Artisan training and development 36,831 36,831 PIVOTAL PIVOTAL Recognition of Prior Learning (RPL) Recognition of Prior Learning (RPL) 16,905 16,905 PIVOTAL Further Education and Training (FET) 1,890 PIVOTAL Bursaries 34,676 Internships PIVOTAL 119 Skills Programmes PIVOTAL 14,879 Workplace Experience / WIL PIVOTAL 27,464 Work Placement / Employment Creation PIVOTAL 25,097 PIVOTAL Learnerships 85,002 PIVOTAL Other Occupationally Directed Programs 219 TOTAL 244,714
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability Actual achievement against targets per Actual achievement against targets per baseline indicator for 2015-16
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA Audited Performance Information 2015/16 Performance Target Actual Percentage Indicator(Learnerships, Skills variance Programmes, bursaries and internships) Employed learners entered 5360 6247 116% Employed certificated 2655 3586 135% Unemployed entered 4270 8450 198 % Unemployed certificated 2135 3859 181% 15
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 Artisans certified 444 444 792 792 178% 178% TVET College Partnerships 18 20 111% TVET Workplace experience 700 937 134% entered 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, 152 210 138% NGOs, worker initiated training NGOs, worker initiated training and small businesses Support to large, medium and 689 791 115% small companies 17
Leadership Overall movement from previous assessment • Provide effective leadership based on a culture of honesty, ethical business practices and good governance, and protecting and enhancing the best interests of the entity • Exercise oversight responsibility regarding financial and performance reporting and compliance as well as related internal controls • Implement effective human resource management to ensure that adequate and sufficiently skilled resources are in place and that performance is monitored • Establish and communicate policies and procedures to enable and support the understanding and execution of internal control objectives, processes and responsibilities • Develop and monitor the implementation of action plans to address internal control deficiencies • Establish an information technology governance framework that supports and enables the business, delivers value and improves performance
Financial Performance Compliance with statements reporting legislation Current Prior year Current Prior year Current Prior year year year year Financial and performance management Overall movement from previous assessment • Implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting • Implement controls over daily and monthly • Implement controls over daily and monthly processing and reconciling transactions • Prepare regular, accurate and complete financial and performance reports that are supported and evidenced by reliable information • Review and monitor compliance with applicable legislation • Design and implement formal controls over information technology systems to ensure the reliability of the systems and the availability, accuracy and protection of information
Recommend
More recommend
