Presentation Outline Presentation of the of the 2016/17 Annual - - PowerPoint PPT Presentation

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Presentation Outline

 Presentation of the of the 2016/17 Annual Performance Report  Presentation of the 2016/17 Annual Financial Statements Presentation of the Auditor-General’s Report Presentation of the Draft 2018/19 Annual Performance Plan

 PSETA’s mandate is focused on “transversal skills” for all National and Provincial departments. PSETA deals with all skills only for departments whose core business is unique to government (e.g. immigration services for Home Affairs, Mission Administration for Foreign Affairs, Statistics for Stats SA);  PSETA is in a unique position as it does not collect skills development levies, like other SETAs – almost all the funds for skills development is under the managerial control of the sector;  Some constituent members have dual reporting to other line function SETAs; and  Sector members report to DPSA on HRD plans and reports, but to SETAs on skills efforts – this creates some discrepancies on what is reported, prompting a need for alignment of these processes.

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Introduction

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Our Values Honesty and Integrity, Accountability, Service Excellence, Fairness and Transparency Our Mission Effective coordination of skills development based on

• ccupationally-directed qualifications; Focusing on learning

programmes; and Promoting learner placement and absorption within the public service sector

Our Vision

Cutting Edge Skills for Quality Public Services

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Overview of PSETA Operating Environment between 2011 - 2017

2011 – 2013

• Operational

Independence from DPSA (Schedule 3A)

• Building Internal

HR capacity and systems

• Governance

Structures established

2013 – 2015

• NSF grant received
• Funding model

developed

• Quality of SSP
• SIU investigation

undertaken

• Turnover of CFOs

experienced

• IA & RM functions

established

2015-2017

• NT Budget

Allocation

• Strategic

partnerships

• Executives

turnover

• Finance & SCM

capacity strengthened

• Unqualified audit
• pinion

Strategic Goals and Objectives

Strategic Goal Strategic objectives

1.PSETA capabilities to lead the Public Service Sector are improved. 1.1.Provision of governance, risk and compliance assurance to ensure a highly effective and efficient entity 1.2.Prudent management and allocation of resources. 1.3.Strategic Human Resources is planned, and implemented to support the

• rganizational performance.

1.4.Strategic and marketing and communication interventions to support

• rganization strategies.

1.5.ICT governance and processes implemented to support the organizational strategies. 2.Sector capabilities to lead capacity-building interventions through partnerships are improved 2.1.To support and respond to sector skills needs by conducting sector research 2.2.Improve stakeholder capacity for skills planning in the sector 3.The stock of skills available to and within the Public Service Sector is improved 3.1.A system to quality assure training provision is developed and implemented for the purpose of delivering a user friendly system for improved quality assurance training 4.The flow of skills into the Public Service Sector is improved. 4.1.Programmes to address scarce and critical skills needs identified in the SSP are implemented and reported (both employed and unemployed). 4.2.Programmes implemented by the sector to open the public service as a training space are supported and reported (both employed and unemployed)

Overview of performance against targets for the 2016/17

 Recorded 51% achievement against its set targets. Of this 51% only 25% represents core business of the organisation. This was largely due to a number

• f reasons to be explained later in the presentation.

 Funding for skills development interventions improved, however, the ability to spend remains a challenge given the bureaucracy that exists within the sector, wherein the response time in relation to the signing of MOA to enable us timely disburse grants.  Detailed achievements per programme is outlined in the next few slides.  Hosted in collaboration with European Union Dialogue Facility Programme, a dialogue for South African public entities and their European counterparts in areas of HRD – Outcome of this is that 20 SIU officials will be trained on a Cyber Forensics 1st Responder learning programme, scarce skills that is not

• ffered in South Africa.

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Overview of performance against targets for the 2016/17

 Conducted research into the legislative sector - assessed the skills needs of administrative and support staff in Parliament and the nine provincial legislatures. Process underway to conclude a MoU with Parliament on behalf of the sector.  PSETA hosted officials from the Botswana Directorate on Corruption Crime, facilitated by the South African Special Investigating Unit, to share practices with regard to the South African approach to skills development, the legislative work that governs training in South Africa, curriculum development and accreditation processes.  Supported the Department of Home Affairs Cadet Programme training unemployed learners who were eventually absorbed into permanent upon completion.  PSETA launched a woman empowerment project and is currently funding eight female managers from the Eastern Cape Department of Sport, Recreation, Arts and Culture to address competency gaps in strategic positions.  A total of 108 females and 106 males are currently undergoing training in various trades in the Provinces of KwaZulu-Natal; Eastern Cape; Western Cape; Mpumalanga; and Gauteng City

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Achievement per Strategic Goal

SG 1: PSETA capabilities to lead the Public Service sector are improved

 Improved risk management maturity rating 4  100% of Internal audit operational plan implemented  90% rating on external assessment of AA completed  100% reduction on recurring audit findings  Unqualified audit report for 2016/17 achieved  51% of the of the Demand Management Plan and Procurement Plan implemented

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Achievement per Strategic Goal

SG 2: Sector capabilities to lead capacity building interventions through partnerships are improved

 A credible Sector Skills Plan, sector understanding and buy-in.  Improvements in Workplace Skills Planning.  Concluded five MoUs with provincial oversight bodies.  DHET has tasked PSETA to facilitate the 2 000 Chinese learning opportunities from 2015 to 2020.  Commissioned a research study into what skills are required to implement green supply chain management effectively in the public sector – implementation carried out Rhodes University.

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 Number of PSETA learning programmes assessed for impact  The PSETA ETQA Department continued to build provider capacity and a total of 74 accredited providers were monitored, and also reduced the turn around time from 45 to 18.49 working days with regard to accreditation.  Impact assessment of five of PSETA qualifications were completed. The PSETA ETQA has maintained it green status for the SAQA NLRD.  Number of career guidance advocacy initiatives 28

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Achievement per Strategic Goal

SG3: The flow of skills into the Public Service sector is improved

Achievement per Strategic Goal

SG 4: The stock of skills available to and within the Public Service sector is improved

PSETA-FUNDED PROGRAMMES

EMPLOYED LEARNERS: Enrolment  Learning Programme: 66 out of 55  Skills Programme: 533 out of 2 500 EMPLOYED LEARNERS : Completions  Learnerships: 35 out of 100  Skills Programmes: 467 out of 700 UNEMPLOYED LEARNERS: Enrolment  Learner ships: 30 out of 50  TVET WIL: 291 out of 200  Artisans: 23 out of 15 UNEMPLOYED LEARNERS : Completions  Learner-ships: 35 against 100  Learnerships 38 of 25  Artisans: 14 of 20

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Learning Programs…

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Scarce and Critical Skills as per SSP for – 2016/17

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• General Manager Public Service, Senior Government Official, Senior Government Manager,

Director (Enterprise / Organisation), Policy and Planning Manager, Programme or Project Manager, Quality systems manager, Office Manager, Archives Manager, Operations Manager (Non Manufacturing), Business Administrator, Database Designer and Administrator, Systems Administrator, Archivist

Management and Administration

• Construction Project Manager, Project Builder, Environmental Manager, Civil engineers, Quantity

surveyors, Land and engineering surveyors, Property Manager, Property Lease Administrator, Property Portfolio and Asset Manager, Computer network technicians

Professional and Technical skills

• Personnel / Human Resource Manager, Business Training Manager, Recruitment Manager,

Labour Recruitment Manager, Skills Development Facilitator / Practitioner, Training and Development Professional, Occupational Instructor / Trainer, Recruitment Consultant / Officer

HRM and HRD

• Finance Manager, Physical Asset Manager, Contract Manager, Supply and Distribution Manager,

Warehouse Manager, Cost and management accountants, Procurement officers, Supply Chain Practitioner, Physical Asset Practitioner

SCM and Contract Management

 Delays in the signing of MOAs by stakeholders resulting in non- allocation of funds and no enrolment of learners.  Delays in the payment of invoices for due to incomplete supporting documents submitted by stakeholders and strategic partners.  Meeting of all targets in the APP due to dependency and/or inadequate cooperation from the stakeholders.  Lack of adequate model for the funding of PSETA.  Uncertainty over SETA landscape resulting high labour turnover.

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Key Challenges

Total Revenue in 2016/17 was R 73 million and R116 million 2015/16 Retention Surplus= R 57.5 million ; Significant surplus due to 2015/16 Irregular Discretionary Grant Process resulting in no new contracts awarded during 2016/17

Revenue and retention surplus 2016/17

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Revenue Streams/ Sources

Levies 11% Vote: DHET 77% NSF Realised Income 10% CIP Projects Realised Income 1% Interest 1% Other Income 0% Levies Vote: DHET NSF Realised Income CIP Projects Realised Income Interest Other Income

Revenue (R)

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7 687 55 727 7 397 535 1 142

16 LEVIES VOTE: DHET NSF REALISED INCOME CIP PROJECTS REALISED INCOME INTEREST OTHER INCOME

R’ Million

Five Year Revenue Comparison

20 R 39 953 R 54 628 R 88 399 R 115 747 R 72 504

R 0 R 20 000 R 40 000 R 60 000 R 80 000 R 100 000 R 120 000 R 140 000 2012/13 2013/14 2014/15 2015/16 2016/17

Five Year Revenue Trend R’ Million

Five Year Expenditure Trends

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R 42 564 R 43 391 R 45 615 R 66 555 R 95 674

R 0 R 20 000 R 40 000 R 60 000 R 80 000 R 100 000 R 120 000 2012/13 2013/14 2014/15 2015/16 2016/17

Five Year Expenditure Trends R’ Million

Net Surplus/Deficit comparatives

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Revenue Expenditure Surplus/(Deficit) R115 747 R66 555 R49 192 R72 504 R95 674 R(23 170)

2016/17 2015/16

Discretionary Reserves

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Administration reserves 2% Discretionary reserves - Committed 29% Discretionary reserves - Uncommitted 69%

Total Assets R107 million

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R173 R1 561 R103 067 R8 R1 585 R863

Intangible assets PPE Cash & Cash Equivalents Consumables Donor Funding Receivable - NSF Trade receivables

Total Liabilities R 24 million

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R 6 266 R 75 R 190 R 5 R 17 513

Trade & Other Payables Operating lease liability Grants and other payable NSF and CIP Deferred income liability Provisions

Current Assets vs. Liabilities

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R 107 257 R 24 049 R 83 208

Total Assets Total Liabilities Net Assets

R’ Million

Dashboard of Internal Controls

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Legends

PSETA obtained an unqualified audit opinion ; Emphasis of matters;

• Restatement of corresponding figures
• Irregular expenditure

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Auditor General’s Opinion

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Auditor General’s Opinion on the AFS

KEY FINDINGS FROM THE AGSA MATTERS RAISED DETAILS Predetermined Objectives No material findings reported in the audit report as all programmes in the management report were unqualified. Compliance with Legislation Annual Financial Statements Section 55(1)a of the PFMA: Due to material adjustments identified through the audit process. Expenditure management Section 51 (1)b(ii) of the PFMA: Effective steps not taken to prevent irregular and fruitless and wasteful expenditure. Internal Controls Proper record keeping System does not allow for easy retrieval of documents. Daily and monthly processing and regular, accurate and complete reports Non-compliance with GRAP requirements resulting in numerous misstatements. Compliance monitoring Non-compliance with Section 55(1)and 51 (1)b(ii).

Questions???

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Background

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 PSETA was re-established as a Schedule 3A public entity in 2016 and re- licensed until 31 March 2020;  Led by 15 Member Accounting Authority whose term of ends on 31 March 2018;  Continues to play the significant role in ensuring that appropriate skills are provided to public sector employees to enable them to delivered good quality services;  It is largely funded from the fiscus through allocation under Vote 15 of the DHET and small portion of levies;

Legislative and Policy frameworks

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Various policy and legal frameworks that govern PSETA , are amongst others listed below:  Constitution of the Republic of South Africa, 1996 as amended;  Skills Development Act, 1998 as amended;  Skills Development Levies Act, 1999;  Public Finance Management Act, 1999 as amended;  White paper on post-school education and training;  National Skills Development Strategy III;  National Development Plan, 2030;  MTSF 2014-2019; and  Implications of HRDC skills review of the current skills development.

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Linking the Sector Skills Plan to the Strategic Plan

Building State Capabilities Through Innovative Strategic Partnerships

Sector Skills Plan

• Identify key

skills priorities and actions

Strategic Plan

• Translate into

strategic goals and objectives

APP

 Total number of PSETA “constituent employees” is 533 678. – PSETA resources are reaching 0.4% of these, and the sector’s resources are reaching less than 10%. We need to reduce costs and increase

• numbers. We also need to mobilise sector behind our strategy for doing

so.  Public Service employment shrank by 0.5% from 2012 – 2015 – Existing public servants need to be upskilled/reskilled for higher levels of

• performance. This points to our critical skills being focused on improving

service delivery.  Vacancy rate up from 11.4% in 2015 to 11.58% in 2016 – Vacancies in professional, technical, scientific and IT occupations should be the priority scarce skills.

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Summary of Key Employment Trends Reported in SSP 2017/18 and implications for the Sector

 Turnover rate is 9% for public service sector – Roughly 50 000 new entrants each year need to be better equipped with the skills needed by the public service; and bridged into work

• pportunities through the internships strategy

 26% of public sector employees have not completed schooling; 46% have no higher education at all. Only 6% of public sector employees have any post-graduate qualification. – PSETA interventions at post-graduate level have a limited market until this demographic changes. RPL strategy also key.

– PSETA resources cannot deliver all the above.

Therefore it is key that we educate, mobilise and organise the sector behind us. Also that we find ways of improving economies of scale/efficiencies – e.g. using technology to expand access to learning.

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Summary of Key Employment Trends Reported in SSP and implications for the Sector

 Turnover rate is 9% for public service sector – Roughly 50 000 new entrants each year need to be better equipped with the skills needed by the public service; and bridged into work

• pportunities through the internships strategy

 26% of public sector employees have not completed schooling; 46% have no higher education at all. Only 6% of public sector employees have a post- graduate qualification. – PSETA interventions at post-graduate level have a limited market until this demographic changes. RPL strategy should play a key role.  PSETA resources cannot deliver all the above.

• Therefore it is key that we educate, mobilise and organise the sector

behind us. Also that we find ways of improving economies of scale/efficiencies – e.g. using technology to expand access to learning

Summary of Key Employment Trends Reported in SSP and implications for the Sector

Current Strategic Partnerships

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Strategic partnerships are focused on building state capabilities identified as priorities in NDP Chapter 13  DPME/NSG – improving planning, monitoring and evaluation capabilities  National Treasury/NSG – improving financial management  DPSA/NSG – improving operational efficiency and effectiveness/ people management  Public Entities/European Union – Establishing international networks to build highly specialised areas of need  Higher Education Round Table to close supply-demand “mismatches  OTP Gauteng – Improving Frontline Service Delivery  DHET/OTPs/National Treasury – supporting the SIPS through IDMS and NIMS, roll

• ut of Infrastructure Procurement Standards

 DHA – Cadet Program to share best practices on bridging people into work

Strategic Outcomes Oriented Goals Goal Statements 1.PSETA capabilities to lead the Public Service Sector are improved. PSETA develops the organisational capabilities to lead the Public Service Sector economically, efficiently, effectively and equitably. 2.Sector capabilities to lead capacity-building interventions through partnerships are improved. Stakeholders locate skills development initiatives within wider capacity-building interventions through partnerships –”aimed at coordinating efforts and focusing resources on the right things” 3.The stock of skills available to and within the Public Service Sector is improved. Existing and future public service sector employees are equipped to fulfil their responsibilities in delivering on their mandates. “demand-side” and “”bridging into work” 4.The flow of skills into the Public Service Sector is improved. Providers who deliver training to current or future public service sector employees efficiently deliver programs that are fit for purpose – “supply-side”

Strategic Goals of the PSETA

Performance Matrix

Strategic Goal Strategic objective Annual Target for 2018/19

1.PSETA capabilities to lead the Public Service Sector are improved. 1.1.Provision of governance, risk and compliance assurance to ensure a highly effective and efficient entity Maintain a rating of 4 1.2. Prudent management and allocation of resources. Clean audit 1.3. Strategic Human Resources is planned, and implemented to support the organizational performance. 100% implementation of approved training plan as per submitted WSP 1.4.. Strategic and marketing and communication interventions to support organization strategies. 30 Career guidance advocacy sessions 1.5. ICT governance and processes implemented to support the

• rganizational strategies.

100% Percentage implementation of approved ICT Plan

Performance Matrix

Strategic Goal Strategic objective Annual Target for 2018/19

2.Sector capabilities to lead capacity-building interventions through partnerships are improved.

2.1.To support and respond to sector skills needs by conducting sector research 11 Skills planning related research studies conducted 2.2. Improve stakeholder capacity for skills planning in the sector Number of organisations’ Workplace Skills Plans approved by PSETA Total =136; Small=6; Medium=10; Large= 120 34 Stakeholder skills planning capacity building sessions conducted

Performance Matrix

Strategic Goal Strategic objective Annual Target for 2018/19

• 3. The stock of

skills available to and within the Public Service Sector is improved. 3.1 Programmes to address scarce and critical skills needs identified in the SSP are implemented and reported (both employed and unemployed). Public service employees entries Learnership: 250 SP: 1000 Bursaries 60 Public service employees completions Learnership: 45 SP: 900 Bursaries: 50 Unemployed learners entries Learnership: 200 TVET WIL:300 Bursaries: 150 Artisans:40 Unemployed learners completions Learnership: 50 SP: 50 3.2. Programmes implemented by the sector to open the public service as a training space are supported and reported (both employed and unemployed) 30 capacity building sessions conducted to support implementation of learning programmes by the sector

Performance Matrix

Strategic Goal Strategic objective Annual Target for 2018/19

• 4. The flow of skills

into the Public Service Sector is improved 4.1 A system to quality assure training provision is developed and implemented for the purpose of delivering a user friendly system for improved quality assurance training 40 Skills development providers accredited on PSETA learning programmes 73 Accredited providers monitored 2 Qualifications developed and /

• r re-aligned and submitted to

QCTO.

Programme Structure

Name of Programme Alignment to Strategic Goals

• 1. Administration

1.PSETA capabilities to lead the Public Service Sector are improved.

• 2. Skills Planning

2.Sector capabilities to lead capacity- building interventions through partnerships are improved. 3.Learning Programmes 3.The stock of skills available to and within the Public Service Sector is improved.

• 4. Education, Training and

Quality Assurance 4.The flow of skills into the Public Service Sector is improved.

*Programme 4 (ETQA) appeared as Programme 3 during the 2016/17 and 2017/18 financial year, but has been moved (to Programme 4 from 01 April 2018) to align with DHET’s Standardised Programme Structure

 Non-achievement of APP Targets.  Failure to spend the allocated Discretionary Grants budget.  Uncertainty of the Seta landscape.  Inadequate model for the funding of PSETA.  Invoices not paid within 30 days.  Fraud and Corruption.  Phasing out of historically registered qualifications.

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Strategic Risks

Total Budget R 119 153 888 million

BUDGET FOR 2018/19 FY

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Detailed Breakdown of the Budget

TOTAL REVENUE 2017/18 Budget Medium-Term Expenditure 2017/18 2018/19 2019/20 2020/2021

Revenue Estimates Admin 623 650 642 360 680 902 721 756 Mandatory 1 270 971 1 309 100 1 387 646 1 470 905 Discretionary 2 895 961 2 982 840 3 161 810 3 351 519 Levies: Other Entities 2 888 757 2 975 420 3 153 945 3 343 182 Transfers from DHET 103 760 000 109 778 000 116 364 680 123 346 561 Other Income 85 000 90 500 95 930 101 686 Surplus Fund Retention 57 548 214

• Interest

648 900 1 375 668 1 458 208 1 545 701 Total Revenue 169 721 453 119 153 888 126 303 121 133 881 309

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