Stability in Shifting Sands 1 Annual Report presentation to AGM - - PowerPoint PPT Presentation

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Stability in Shifting Sands

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Annual Report presentation to AGM 27 November 2014 Shamira Huluman PSETA:CEO

Stability in Shifting Sands

Outline

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• Introduction and Mandate
• Strategic Outcome Orientated Goals
• Funding Model
• Revenue/Expenditure Analysis
• Performance: Predetermined Objectives
• Successes And Challenges
• Organogram
• AG Report: Basis for Qualification
• AG Findings on Performance Information
• Plans to address AG Findings
• Conclusion

Introduction

The PSETA welcomed the financial year 2013/14 positively, and with great anticipation that the circular issued by the Department of Public Service and Administration (DPSA) on the utilisation of the one percent training budgets by government departments, will facilitate the achievement of its vision to provide cutting edge skills for quality public services. Due to administrative and legal challenges, a moratorium was placed by National Treasury on the Directive intended for government departments to transfer levies to PSETA and other SETAs. In terms

• f the Directive, national departments did not pay over the funds to

PSETA during 2013/4, except for a few provincial departments

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Mandate

• PSETA is established in terms of the Skills Development Act

(SDA) and listed as a Schedule 3A public entity reporting to the Minister of Higher Education and Training (MHET), as the Executive Authority

• Mandate: To identify skills shortages, facilitate education &

training, encourage the investment in skills development to increase competence and capacity with specific reference to “business of government” and transversal occupations within the PS sector

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Strategic outcome oriented goals

• Better understanding skills needs in the Public Service

Sector

• Lead the development of the current stock of skills in

the Public Service sector

• Improve the flow and quality of skills into the Public

Service and at the same time, address unemployment and poverty

• Re-build the profile of PSETA
• Build PSETA’s capacity to achieve its strategic
• bjectives

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PSETA Funding Model

• PSETA unlike other SETAs does not receive levies from its main

employer constituency, Government, due to S30 of the SDA that does not make it mandatory for departments to pay levies.

• PSETA has over the last 13 years relied on a Treasury allocation via

DPSA for its operational costs and on NSF conditional grants to carry

• ut projects.
• MHET in conjunction with MPSA tabled a memorandum to Cabinet in

November 2012, to regulate the utilization of the 1% training budgets within Public Service, resulting in the DPSA Directive HRD 1 of 2013, issued in March 2013.

• 30% of the 1% to SETAs, 50% of 1% for skills interventions for current

employees, 20% for the unemployed.

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Revenue/ expenditure analysis

• National Treasury allocation via DPSA for 2013/4 was R23.3 million

for operational expenses

• PSETA in terms of DPSA directive received R22.8 million from

provincial departments, which was only received in February and March 2014.

• NSF conditional grant received in 2013/4 was R7.5 million
• Total revenue for 2013/4 was R54.6 million
• Total expenditure for 2013/4 was R44 million.

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Performance against Pre-determined

• bjectives

PROGRAMME Total Annual Targets Achieved Not Achieved % Achieved Programme 1: Skills Planning and Research 2 1 1 50% Programme 2: Learning Programmes 21 16 5 76% Programme 3: ETQA 8 7 1 87.5% Programme 4: Corporate Services 8 6 2 75%

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Performance against Pre-determined

• bjectives

PROGRAMME Total Annual Targets Achieved Not Achieved % Achieved Programme 5: Finance 4 4 0% Programme 6: Governance 5 2 3 40% Programme 7: Projects 3 1 2 33.3% Overall Performance 51 Achieved 33 65% Not Achieved 18 35%

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Performance against Pre-determined

• bjectives during 2013/4

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Successes

• The PSETA/DPSA and NSF Rural Youth Skills Development

partnership has yielded positive results. The SETA is now reporting the successful completions of the first cohort of rural, unemployed learners in learnerships and internships

• To date, 39% of PSETA interns were absorbed into employment,

as opposed to the 5% required by the State as Employer (DPSA Directive)

• TVET Colleges have shown an interest in participating in the

exposure to Public Service workplaces to gain contextual understanding

• Registration of the Occupational Certificate, Office Administrator:

Public Service Administrator at NQF Level 5 by the QCTO (CIP)

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Successes…

• The ETDP SETA partnership has enabled the PSETA to have a presence

in 50 TVET Colleges as opposed to the annual target of 18 in the APP

• The development of an updated SSP in partnership with HEIs and in

particular with Wits - Public Administration Research Institute (PARI), has provided sound research and analytical skills, and has assisted the SETA with credible data.

• A SSP update seminar was held in July 2013. It was attended by the

sector senior managers and contributed towards a better understanding of the SSP development process. It further provided information to the delegates on how to form partnerships with the SETA and to identify meso-level training needs for the sector

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Successes…

• The PSETA doubled the number of learner certificates (2220)

issued for Public Administration: NQF Level 4, National Diploma in Diplomacy (level 7), National Certificate: Mission Administration Level 5 and 6, and National Certificate:Official Statistics Level 5.

• 368 assessors and moderators were registered in the sector,

supporting the NSG and other state academies to implement the Compulsory Induction Programme (CIP)

• 6 occupational qualifications were developed and submitted to

QCTO(1 for legislature, 2 for DIRCO and 3 in Public Admin)

• In-house internal audit function fully established, improves internal

control environment, financial and performance reporting.

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Challenges

• The APP was reviewed midterm due to non payment of levies by

the employers as anticipated through the implementation of the DPSA directive.

• Capacity challenges within the finance division compromised

financial management processes (CFO resignations and a litigation against the appointment of the interim CFO)

• Lack of uniform reporting templates in the sector and

accompanying supporting evidence challenged PSETA’s monitoring of skills interventions

• Slow pace of finalisation of Memoranda of Understanding with

partners/ stakeholders

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Organogram

Chief Executive Officer Shamira Huluman Accounting Authority Board Secretary Suzan Maroleng Executive Assistant to the CEO Puseletso Ditshego Chief Operations Officer Lindelwa Ximiya Minister of Higher Education and Training Chief Finance Officer Emily Ntsowe Corporate Services Executive Jabulane Jiyane Chief Audit Executive Evelyn Rampola Audit Committee

• PSETA received a qualified audit opinion based on deferred

income liability

• Qualification based on failure to present financial evidence

supporting utilization of R4,6 million (historical from 2005/6 NSF project) from the NSF grant.

• These matters were referred to SIU for investigation, of which 80%
• f supporting documentation was found.
• Management is hopeful that this will resolve the qualification

during the 2014/15 external audit process

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AG Report: Basis for Qualification

• With respect to audit findings on usefulness of reported

performance information and the application of the relevant NT frameworks, Government Technical Advisory Center (GTAC) has been assisting the entity to refine its performance indicators and targets to be well defined and measurable

• The intervention has ensured the transfer of skills to

management, improving capabilities on strategic planning

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AG Findings on Performance Information

Plans to address AG Findings

• Management has developed an audit findings matrix and a

Continuous Improvement Plan to monitor implementation of AG recommendations.

• The Accounting Authority monitors implementation on a

quarterly basis through intensive internal audit processes and thorough introspection by the Audit Committee

• Critical root causes have been incorporated in Management

performance agreements.

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Conclusion

• The PSETA model is stakeholder driven and its

contribution is critical to professionalise the sector and ensuring “cutting edge skills for public service”

• PSETA remains positive that the payment of skills levies

by employers in the public service will be resolved politically and legislatively.

• The Accounting Authority and PSETA staff remain

resolute in making a meaningful contribution to the professionalization of the Public Service.

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