PRESENTATION ON ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS FOR - - PowerPoint PPT Presentation

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

ALLOCATION OF NET DEFICIT FOR THE 2015-16 FINANCIAL YEAR

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

2015/16 R'000 Net Deficit (15,355) Net Deficit (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 – 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% 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 Prior Learning (RPL) R8,659 1362 R6,357 3.2% TVET Support (Partnerships) R3,254 195 R16,688 1.2%

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 / R45,211 2 294 R19,708 18.3% 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%

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 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 PIVOTAL Recognition of Prior Learning (RPL) 16,905 PIVOTAL Apprentice / Artisan training and development 36,831 PIVOTAL Recognition of Prior Learning (RPL) 16,905 PIVOTAL Further Education and Training (FET) 1,890 PIVOTAL Bursaries 34,676 PIVOTAL Internships 119 PIVOTAL Skills Programmes 14,879 PIVOTAL Workplace Experience / WIL 27,464 PIVOTAL Work Placement / Employment Creation 25,097 PIVOTAL Learnerships 85,002 PIVOTAL Other Occupationally Directed Programs 219 TOTAL 244,714

Actual achievement against targets per

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

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 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%

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 444 792 178% Artisans certified 444 792 178% TVET College Partnerships 18 20 111% TVET Workplace experience entered 700 937 134%

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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 152 210 138% NGOs, worker initiated training and small businesses Support to large, medium and small companies 689 791 115%

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

• f 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 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

Financial statements Performance reporting Compliance with legislation Current year Prior year Current year Prior year Current year Prior year

• 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

Governance Overall movement from previous assessment

• Implement appropriate risk management

activities to ensure that regular risk assessments, including the consideration of information technology risks and fraud prevention, are conducted and that a risk strategy to address the risks is developed and monitored

Financial statements Performance reporting Compliance with legislation Current year Prior year Current year Prior year Current year Prior year

• Ensure that there is an adequately resourced

and functioning internal audit unit that identifies internal control deficiencies and recommends corrective action effectively

• Ensure that the audit committee promotes

accountability and service delivery through evaluating and monitoring responses to risks and overseeing the effectiveness of the internal control environment, including financial and performance reporting and compliance with legislation

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

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

THANK YOU THANK YOU