SASSETAAnnual Report Annual Report

presentationpresentationto the Portfolio Committee

SASSETA - your partner in skills development

Registered legal firms

SASSETA - your partner in skills development

annual report 2012

• There are a total of 11 016 registered legal firms in South Africa.

• The Law Society of the Northern Provinces – Gauteng, Mpumalanga, North-West and Limpopo has the largest number of legal firms.

• The second largest number of firms are part of the Cape Law Society which consists of the Western, Eastern and Northern Cape.

Registered security businesses

SASSETA - your partner in skills development

annual report 2012

There are a total of 8 828 security service providers in 2011.

1332 new security service providers were registered in 2011.

This represents a 18% increase from 2010 to 2011.

The growth rate remains consistent with a 17% increase from 2009 to 2010

Police stations

SASSETA - your partner in skills development

annual report 2012

SASSETA - your partner in skills development

annual report 2012

• Correctional Services centres There are currently 241 correctional services centres

2 out of the 241 correctional services centres are private prisons:

1. Mangaung Maximum Security Private Prison

2. Kutama Sinthumule Maximum Security Prison

Magistrates Courts

Total381

Source: Department of Justice

Provincial offices

Total142

Source: Road Traffic Management Corporation (As at Feb 2011)

Goal 4.2: Increasing access to occupationally-directed programmes

EMPLOYED LEARNERS2011/12 2011/12

VarianceTarget Performance

Workers to enter learnerships 2,176 494 (1,682)Workers to enter internships - - -Workers to receive bursaries 224 - (224)Workers to enter skills programmes 3,754 2,788 (966)Workers certificated on learnerships 1,088 306 (782)Workers on internship certificated - - -

Workers on bursaries certificated 112 - (112)Workers on skills programmes certificated 1,877 1173 (704)

Outcome 4.2.1 - Middle level skills needs are identified and addressed in all sectors

Goal 4.2 : Increasing access to occupationally-directed programmes (continued)

CHALLENGES:

The underachievement was because of the late implementation of projects due to changes in the SETA environment.

The late establishment of the boards and chambers resulted in projects being suspended until the governance structures were in place.

REMEDIAL STRATEGIES:

Alignment of implementation of projects to the Government Planning Cycle.

SASSETA - your partner in skills development

Goal 4.2: (continued)Increasing access to occupationally-directed programmes

UNEMPLOYED LEARNERS2011/12 2011/12 VARIANCETARGET PERFORMANCE

Learners to enter learnerships 63 932 869

Learners to enter internships 200 - (200)

Learners to receive bursaries 99 17 (82)

Learners to enter skills programmes - 1,531 1,531

Learners certificated on learnerships 32 1,069 1,038

Learners on internship certificated 100 - (100)

Learners on bursaries certificated 50 - (50)

Learners on skills programmes certificated - - -

Outcome 4.2.1 - Middle level skills needs are identified and addressed in all sectors

CHALLENGES

There were many self-funded learnerships embarked on by the Private Security firms. The demand for this qualification was there and despite us not funding, employers went ahead and funded the implementation of the programme. Also, some projects which commenced the previous financial year were only completed within the current reporting period.

REMEDIAL ACTION

The monitoring and evaluation policy has been developed for tracking our learners

Goal 4.2 (continued)Increasing access to occupationally-directed programmes

SASSETA - your partner in skills development

Outcome 4.2.2 - 10,000 artisans per year qualify with relevant skills and find employment

Goal 4.2 (continued)Increasing access to occupationally-directed programmes

SASSETA - your partner in skills development

ARTISANS2011/12 2011/12 VARIANCETARGET PERFORMANCE

Artisan workers entered 225 - (225)Artisan workers certificated 113 - (113)Artisan unemployed entered 200 - (200)Artisan unemployed certificated 100 - (100)CHALLENGES:This target could not be achieved because of the late approval of projects and signing of contracts. Employers also preferred to deal directly with the Primary SETAs for specific qualifications (MERSETA, ransport SETA). The first group of artisan learners reported on will complete their 3 year programmes in 2013/14.

REMEDIAL ACTIONImplementation of the annual planning cycle

Outcome 4.3.2 - Partnerships between DHET, SETAs, employers, private providers and public FET colleges are resulting in increased capacity to meet industry needs throughout the country.

Goal 4.3: Promoting the growth of a public FET college system that is responsive to sector, local, regional and national skills needs and priorities

GOALS/OUTCOMES/ 2011/12 2011/12 VARIANCE BUDGET ACTUALOUTPUTS TARGET PERFORMAN

CEFET college partnerships 0 0 0 0 0

CHALLENGES:We took the initiative to liaise with the different FET Colleges and Universities. The following have been met and draft MOUs developed pending their signatures: Ehlanzeni, Gert Sibande, Nkangala and MRTT in Mpumalanga.

REMEDIAL ACTION3 Partnership Agreements have been concluded already

Agreement in place to open an office at Ethekwini FET College

Outcome 4.4.1: A national strategy is in place to provide all young people leaving school with an opportunity to engage in training or work experience, and improve their employability.

Goal 4.4: Addressing the low level of youth and adult language and numeracy skills to enable additional training

SASSETA - your partner in skills development

GOALS/OUTCOMES/ 2011/12 2011/12 VARIANCE

OUTPUTS TARGET PERFORMANCEYoung learners receiving work experiencing.

25 0 (25)

Young learners received placement. 13 0 (13)

CHALLENGES:

The target could not be reached due to late start of the projects.

REMEDIAL ACTION

Implementation of the Annual Planning Cycle

Outcome 4.6.1: Cooperatives supported with skills training and development expands and contributes to sector economic and employment growth.

Goal 4.6 Encouraging and supporting cooperatives, small enterprises, worker-initiated, NGO and community training initiatives.

SASSETA - your partner in skills development

NO GOALS/OUTCOMES/ 2011/12 2011/12 VARIANCEOUTPUTS TARGET PERFOR-

MANCE4.6.1 Cooperatives supported with skills training 0 0 04.6.2 Small businesses supported with skills development. 0 0 04.6.3 NGO’s supported. 8 0 (8)

CBO’s supported. 4 0 (4)

CBC’s supported. 0 0 0CHALLENGES:The projects will be implemented during the next financial year due to SETA establishment challenges. In 2011/12 there was a transition from NSDS II to NSDS III and at the time of the submission of the budget, it was not clear what would be contained in the NSDS III

REMEDIAL ACTIONS

Implementation of Annual Planning Cycle

Outcome 4.8.1 - Career paths are mapped to qualifications in all sectors and sub-sectors, and communicated effectively, contributing to improved relevance of training and greater mobility and progression

Goal 4.8 Building career and vocational guidance

GOALS/OUTCOMES/ 2011/12 2011/12 VARIANCE BUDGET ACTUAL

OUTPUTS TARGET PERFORMANCE

Career guidance initiatives. 0 0 0 0 0

CHALLENGES:

No target for the financial year in question.

REMEDIAL ACTION

Target addressed in the 2012/13 APP

SASSETA - your partner in skills development

SASSETA - your partner in skills development

annual report 2012

FinancialsDescription Actual R’000 Budget R’000

Revenue

Skills Development Revenue 252,597 204,287

Other 12,180 6,887

Total Revenue 259,484 216,467

Expenses

Employer Grants and Project Expenses (150,337) (143,339)

Administration Expenses (64,719) (73,128)

Total Expenses (215,056) (216,467)

Surplus 44,428 -

SASSETA - your partner in skills development

annual report 2012

AUDITOR GENERAL FINDINGS AND REMEDIAL PLANS

•Qualified Audit Opinion - for the first time.•Management Letter Action Plan to address all audit findings by the Auditor General.•Plan consulted with Audit & Risk Committee, AG & Board to ensure that it addresses the root causes.•Strengthening of the internal control environment.•Risk analysis (Risk Register) of the organisation done and risk response formulated•Audit & Risk Committee and EXCO to monitor closely the mitigation of

risks and Management Letter Action Plan.

SASSETA - your partner in skills development

annual report 2012

Major AG Findings and Progress

Major Finding High LeveL Action Plan Progress

There are no controls in place over the planning, implementation and the reporting of performance information.

• design and implement system that will ensure proper record keeping, accurate and complete recording of information, review and monitoring of financial information.

• Re-organise our filing system.• Nominate an Implementation Team

across departments.• Review the records management

policy.• Develop an SOP.

• Currently undertaking the overhauling of our filing system project as it involves all Departments.

• An SOP has been developed and implemented.

• Records management policy has been reviewed and its in the approval structures.

SASSETA - your partner in skills development

annual report 2012

Major AG Findings and Progress (continued)

Major Finding High LeveL Action Plan Progress

Mandatory and Discretionary grants reconciliations not performed.

• Perform monthly recons of Project Expenditure.

• Perform quarterly recons of Mandatory Grants expenditure.

• Monthly recons of Project Expenditure are being performed and addressing challenges that are there.

• Quarterly recons of Mandatory Grants expenditure are being performed.

SASSETA - your partner in skills development

annual report 2012

Major AG Findings and Progress (continued)

Major Finding High LeveL Action Plan Progress

There are no proper controls in place to ensure that the information used in the reporting of performance information is valid.

• design and implement system that will ensure proper record keeping, accurate and complete recording of information, review and monitoring of financial information.

• Re-organise our filing system.• Nominate an Implementation

Team across departments.• Review the records management

policy.• Develop an SOP.

• Currently undertaking the overhauling of our filing system project as it involves all Departments.

• An SOP has been developed and implemented.

• Records management policy has been reviewed and its in the approval structures.

SASSETA - your partner in skills development

annual report 2012

Major AG Findings and Progress (continued)

Major Finding High Level Action Plan Progress

Supply Chain Management weaknesses that resulted in Irregular Expenditure.

• Review the Delegation of Authority between CEO and Board.

• SCM Database to be reviewed.• Review structure of the SCM. • Training of SCM officials.

• Database of suppliers revamped to be broader.

• Structure of SCM has been reviewed.

• SCM Checklists and SOP’s have been developed.

SASSETA - your partner in skills development

Thank you