services seta annual report - national government...annual report 2014/2015. 2 public entity’s...

SERVICES SETA ANNUAL REPORT • 2014/20151

Services SETA Annual Report

2014/2015

2

PUBLIC ENTITY’S GENERAL INFORMATION

Registered Name Services Sector Education and Training Authority Country of incorporation and domicileSouth Africa

Physical Address Ristone Office Park 15 Sherborne Road ParktownJohannesburg 2193

Postal address P.O. Box 3322HoughtonJohannesburg 2041

Telephone Number +27 11 276 9600

Email Address [email protected]

Website Address www.serviceseta.org.za

External AuditorsAuditor-General of South Africa (AGSA)

BankersStandard BankInvestec Bank and First National Bank


CONTENTS

Part A: General Information 5

1. Strategic Overview 6 a. Vision 7 b. Mission 72. Legislative and other Mandates 73. Foreword by the Chairperson of the Accounting Authority 84. Chief Executive Officers’ Overview 105. Sector Profile 12-186. Special Projects 19-20

Part B: Performance Information 21

1. Performance Information Report on Pre-Determined Objectives 2014/15 22-60

Part C: Governance 61

1. Introduction 62 2. Accounting Authority 623. Committees of the Accounting Authority 634. Executive Committee 635. Finance Committee 646. Audit Committee 647. Human Resources and Remuneration Committee 658. Governance, Risk and Strategy Committee 65

Part D: Human Resource Management 66

1. Overview 672. Organisational Structure 673. Induction Programme Formalised 674. Improved Performance Management 675. Human Resources and Remuneration Committee 686. Education and Training 687. Labour Relations 688. Employee Wellness 689. Facilities Management and Occupational Health and Safety 6910. Employment Equity 6911. Executive and Senior Management 73

Part E: Financial Information 74

1. Audit Committee Report 762. Report of the Auditor-General to Parliament on the Services SETA 783. Accounting Authority’s Responsibilties and Approval 814. Report of the Accounting Authority 825. Materiality and Significant Framework 84

Annual Financial Statements 87-136

4

Dr Blade Nzimande Minister of Higher Education and Training

In terms of Section 65 of the Public Finance Management Act, 1999, I have the honour to present to the

Minister of Higher Education and Training, Dr Blade Nzimande, the Annual Report of the Services Sector

Education and Training Authority (SETA) for the period 01 April 2014 to 31 March 2015.

Mr Themba Mhambi

Chairperson of the Accounting Authority

Services SETA

PRESENTATION OF THE ANNUAL REPORT TO THE MINISTER OF HIGHER

EDUCATION AND TRAINING


Part A General

Information

6

ABBREVIATIONS / ACRONYMS LIST

AET Adult Education & Training

AFS Annual Financial Statements

AGSA Auditor General of South Africa

APP Annual Performance Plan

ATR Annual Training Report

BCEA Basic Conditions of Employment Act

BEE Black Economic Empowerment

CBO Community Based Organisation

CEO Chief Executive Officer

CFO Chief Financial Officer

CHE Council on Higher Education

COSATU Congress of South African Trade Unions

CPD Continuous Professional Development

DHET Department of Higher Education and Training

DoE Department of Education

DoL Department of Labour

DTI Department of Trade and Industry

ETQA Education and Training Quality Assurance

EXCO Executive Committee

GRAP Generally Recognised Accounting Practice

HET Higher Education and Training

NAMB National Artisan Moderating Body

NEET Not in Employment, Education or Training

NGO Non-Governmental Organisation

NPO Non-Profit Organisation

NQF National Qualifications Framework

NSA National Skills Authority

NSDS National Skills Development Strategy

NSF National Skills Fund

OFO Organising Framework for Occupations

PDI Previously Disadvantaged Individuals

PFMA Public Finance Management Act

QCTO Quality Council for Trades and Occupations

RPL Recognition of Prior Learning

SAQA South African Qualifications Authority

SARS South African Revenue Service

SDL Skills Development Levy

SETA Sector Education and Training Authority

SIPs Strategic Integrated Projects

SMME Small, Medium and Micro Enterprise

TVET Technical and Vocational Education and Training

WIL Work Integrated Learning

WSP Workplace Skills Plan


1. STRATEGIC OVERVIEW

Vision

A professional world-class services sector supporting inclusive growth and development.

Mission

The Services SETA aims to achieve this by ensuring that:

• Accountability, mobility, progression and recognition of practitioners in the sector are established

and maintained through professional bodies and quality partners

• Skills are globally benchmarked and evaluated against service excellence standards

• A skills policy in support of inclusive growth and development is adopted to address the three key

challenges of poverty, unemployment and inequality

• Skills development addresses both national and sectoral priorities while supporting employers and

learners from both the first and the second economies.

2. LEGISLATIVE AND OTHER MANDATES

The Services SETA was established in terms of the Skills Development Act of 1998. It receives levy

income in terms of the Skills Development Levies Act (1999). The Services SETA is required to manage

these funds in accordance with the terms of the Public Finance Management Act (PFMA) and various

regulations emanating from that Act, including Supply Chain Management Regulations. These Acts are

amended from time to time and such amendments need to be factored into the work of the Services

SETA.

The work of the Services SETA is further guided by the South African Qualifications Act of 1995. This Act

provided for the Services SETA to apply to become an ETQA in 2000. This legislation was subsequently

adjusted by the National Qualifications Framework Act of 2008 and the amendments to the Skills

Development Act (2008) establishing the Quality Council for Trades and Occupations (QCTO).

The Services SETA is a public entity accountable to the Minister of Higher Education. As a public entity

the Services SETA must produce a Strategic Plan and Annual Performance Plan (APP) in accordance

with Treasury Regulations emanating from the PFMA. As an entity accounting to the Minister it is

incumbent on the Services SETA to respond to the broader government policy and strategy framework.

The National Skills Development Strategy (NSDS) provides a framework for the Services SETA to align

its work to the New Growth Path (NGP), the Industrial Policy Action Plan (IPAPII), the National Skills

Accord, and other mandates such as Broad Based Black Economic Empowerment (BBBEE) and other

provisions relating to employment equity and the Charter processes in so far as they impact on the

services sector.

OTHER MANDATES:

• National Skills Development Strategy III (NSDS III)

• Medium Term Strategic Framework of Government ( MTSF)

• Human Resource Development Strategy

• Youth Development Strategy

• Rural Growth and Development Strategy

8

The year under review was a consolidation and

reinforcement period following the previous year’s

achievement of an unqualified audit opinion. A

magnifying glass was trained on strengthening

governance; deepening accountability; enhancing

performance; and responding to broader, national

skills development imperatives.

As a result of the said focus the Services SETA

has achieved, for the year under review, a clean

audit opinion. The Auditor General has found the

Services SETA’s financial statements to be free of

mistatements; and with no material audit findings

on compliance with key applicable legislation.

The peformance information was also found to

be free of material findings on usefulness and

reliability.

Strengthening governance

The previous financial year the Services SETA’s

Accounting Authority had established, and

ensured, the sound functionality of its standing

committees. The year under review saw the

continuation of commitment thereto as attested

to by an 81% meeting attendance despite an

hourly-rate payment regime.

More illustrative of the strengthening of governance

is the establishment of Chamber Committees

for the SETA’s Accounting Authority to more

effectively respond to the nuanced needs of the

SETA’s sub-sectors. Of specific importance in this

regard is the Services SETA’s strategic planning

informed by and infused with stakeholder inputs

based on their expert understanding of scarce

and critical skills in their respective industries and

sub-sectors.

3. FOREWORD BY THE CHAIRPERSON OF THE ACCOUNTING AUTHORITY

Deepening accountability and enhancing

performance

After the previous financial year’s focus on internal

controls, the year under review emphasised the

human dimension and role in the controls space.

Accordingly, Services SETA staff were exposed

and subjected to a strict risk mitigation and

performance management regime.

Risk management was placed under the

Governance, Risk and Strategy Committee to

ensure that, by the time the Audit Committee

exercises its risk assessment role, organisational

risks would have been minimised and mitigated.

The Governance, Risk and Strategy Committee also

oversaw the development of the whistleblowing

process so critical to shielding the Services SETA

against fraud and corruption from both within and

outside of the organisation.

With the exception of a handful, all existing

employees signed performance agreements

during the year under review. All new appointments

are also explicitly subject to the signing of

performance agreements with the organization.

The performance management system anchoring

the said performance agreements is aligned to the

Service SETA’s Strategic and Annual Performance

Plans. Staff performance is therefore contextual

rather than haphazard and inimical to broader

organisational goals.

Accountability was further deepened, in the

year under review, through a clear segregation,

delineation and definition of roles and

responsibilities of the Services SETA’s Head Office

versus those of the Provincial Offices.

The effect of greater accountability is evident from

all-round improvements in the performance of

the Services SETA, as emphatically demonstrated


by the jump from 31% enrolments against targets

in the year before to 53% in the year under review.

An additional 4511 learners were enrolled as part of

addressing the Services SETA’s prior year targets.

The total number of funded learners enrolled

by the Services SETA in the year under review

is 12480. It is no coincidence that the greatest

improvement in the above regard coincides with

the quarters when the performance agreements

were signed with staff and came into force.

Buttressing the Services SETA’s improved

performance during the year under review

was greater emphasis on stakeholder support.

This began with dedicated attention to project

allocations as proven by a leap in discretionary

grant allocations and investment from R297m

in the 2013/14 financial year to R1.8 billion in the

year under review.

Responding to broader, National Skills

Development imperatives

Over and above its sector-specific interventions,

the Services SETA has an obligation to support

the broader skills development imperatives of

the country. It is against that background that,

during the financial year under review, the SETA

consolidated its Special Projects Department, the

unit tasked with responding to skills development-

related national macro strategic needs.

Pursuant to the fulfilment of that objective, during

the year under review the Accounting Authority

of the Services SETA approved, in the context of

special projects:

• The establishment of eight multi-sectoral

skills development centres to serve previously

underserviced areas

• Funding for the establishment of four

community colleges, as envisaged by the

White Paper on Post-school Education and

Training, in the Northern Cape, Mpumalanga,

Limpopo and Western Cape Provinces

• The establishment of a national artisan

development academy at Motheo TVET

College in the Free State Province and

• Funding for the South African Institute for

Vocational and Continuing Education and

Training as provided for in the NSDS III.

Challenges moving forward

A major challenge the Services SETA would like

to isolate, moving forward, relates to addressing

BEE issues as they pertain to its existence and

praxis as a public institution, and given its one

word custodianship of public resources and its

obligation to contribute to the socio-economic

transformation of the country.

Conclusion

Our gratitude, as the Accounting Authority of

the Services SETA, for yet another progressive

year goes to our Executive Authority the Minister

of Higher Education and Training; our line

department the DHET; the Auditor-General; our

Audit Committee; our Executive and other levels

of Management; our stakeholders; the unions at

the Services SETA; and our valued staff.

Mr Themba Mhambi

Chairperson of Accounting Authority

Services SETA

10

The 2014/2015 financial year has been

characterised by a mix of fundamental changes

aimed at creating the long-term sustainability

of the Services SETA and addressing short-

term challenges that were a result of previous

backlogs in service delivery. The changes

involved the reengineering of the Services SETA’s

business processes and organisational structure

for greater efficiency and effectiveness. The

clean audit outcome attests to the efficacy of the

interventions made by the Services SETA.

Organisational reengineering

During the year under review the Services SETA

instituted a number of remedial processes aimed

at turning the organisation around; developing a

performance-based culture amongst employees

and stakeholders; and fast tracking the pace of

delivery of services. Accordingly, the Services

SETA enhanced its systems and re-engineered

them to ensure alignment between people,

plans, policies, processes and procedures.

The Services SETA’s Strategic Plan was

implemented via a focus on core business and

the realignment of human resources based on

capacity so as to enhance performance and

accountability.

A key aspect of the new structure has been

its alignment with the organisation’s new

operational model. This has resulted in a more

strategic approach to planning and monitoring of

performance against pre-determined objectives

aimed at addressing the supply and demand of

scarce and critical skills in the services sector.

The new processes referred to above resulted

in an increase in commitments, and in the

effective management of learner enrolments and

achievements.

This is evident from the fact that in the last quarter

of the year under review, the Services SETA

achieved both qualitatively and quantitatively

more than it did in the previous three quarters

of the year. This is despite the organisation

functioning with some gaps in the management

and staff corps.

An acknowledgement must also be made of

the role played by the 30 Interns hosted by the

Services SETA in its contribution to the work

placement of graduates from TVET Colleges and

Universities.

Mandatory Grants

Whilst the Services SETA experienced a slight

increase, from 2 906 to 3 109, in employers that

made mandatory grants submissions, the aim is

to further expedite the reimbursement process

and increase the turn-around times in order to

incentivise greater participation by levy-paying

employers.

Discretionary Grants

One of the highlights of the year is a massive

increase, by 519%, in the Services SETA’s

Commitment Schedule for Discretionary Grants.

This was due to fast-tracking allocations after a

4. CHIEF EXECUTIVE OFFICER’S OVERVIEW

Liesel Köstlich


long spell of non-allocations, and the introduction

of a new system of project allocations. The new

system was designed to address, inter alia, the

need for fairness, objectivity, transparency and

accountability in the allocation of discretionary

grants. The new system included quality assurance

in the form of a due diligence assessment of

applicants before finalising allocations.

It is the Services SETA’s intention to broaden

the base of our stakeholders participating in

discretionary grant through greater capacity

building, especially in those sub-sectors that have

not traditionally benefited from discretionary grant

funding before. This capacity building includes

recruitment strategies, with emphasis on learners

from rural areas and those with disabilities. It also

focuses on the appointment of properly qualified

and accredited skills development providers.

Discretionary grant recipients are also empowered

through a Services SETA learner portal from which

they are able to recruit prospective learners. This

portal is a result of the Services SETA’s greater

focus, during the year under review, on Career

Guidance and Career Expos across the country.

Unfunded Learning Interventions

The year under review also saw the Services SETA

qualitatively improving its service around learning

interventions not funded by itself. The Services

SETA did this by accepting the submission of

unfunded learning interventions documentation

all-year round, instead of the previous two times a

year. This has significantly increased the number

of learners accessing Services SETA accredited

training. It has also increased private sector

investment in the training of the nation due to the

incentive provided by the attendant tax rebate.

Quality Management

The year under review was also characterised

by a singular and greater focus on the quality

management mandate of the Services SETA.

Towards this end the Quality Management Division

of the organisation was restructured, with greater

investment in both the desktop evaluation and the

onsite appraisal of applications for accreditation.

Applications for Assessor and Moderator

registrations were also subjected to enhanced

evaluation processes. The Services SETA also

invested in in-house capacity for external

moderation. This has gone a long way towards

reducing backlogs emanating from the previous

operational model of out-sourcing this function.

It has concomitantly addressed the crisis of the

certification of our learners.

Conclusion

A clean audit opinion is a good news story, but on-

going improvement is an even better story to tell.

Consequently, the Services SETA will be ensuring

greater investment in and alignment between the

scarce and critical skills in its sector and all core

business associated with it. This is anchored on

enhanced research towards a more reliable and

accurate reflection of the services sector’s scarce

and critical skills gaps so that there can be greater

job and entrepreneurial opportunities for our

learners.

Liesel Köstlich

Acting Chief Executive Officer

12

5. SECTOR PROFILE

The Services SETA consists of a cluster of 70 Standard Industry Classification (SIC) codes as determined

by the Minister of Higher Education and Training. The 70 SICs have been grouped into six Chambers and

16 sub-sectors.

The six Chambers of the Services SETA are:

1. Cleaning and hiring services

2. Communication and marketing services

3. Labour and collective services

4. Management and business services

5. Personal care services

6. Real estate and related services

Below is a breakdown of the various Chambers and their Sub-sectors:

Services SETA Sector Chambers and Sub-sectors

Sub-sector

Sub-sector title SIC code Gazetted industry descriptor

Chamber 1: Cleaning and Hiring Services

Hiring services

86025 Office machinery, equipment and rental leasing

50500Renting of construction or demolition equipment with operators

85000Renting of machinery and equipment, without operator and of personal and household use

85200 Renting of other machinery and equipment

85300Renting of personal and household goods not elsewhere classified

99029 Function and catering equipment hire

99035 Miscellaneous item hire

99036 Truck hire

99037 Video hire

99047 Pet care

99052 Truck and plant hire

Household services99025 Dry cleaning and laundering

99026 Garden maintenance services

Domestic services 99027 Domestic services

Cleaning services

99002 General cleaning

99018 Cleaning of carpets and upholstery

99019 Cleaning equipment and consumables supply

Chamber 2: Communication and Marketing Services

Marketing

9001 Marketing services

9002 Marketing communications (Incl. Public Relations)

9008 Direct marketing

88130 Market research and public opinion polling

99038 Brand marketers



Sub-sector


Call centres 99055 Call centre management

Postal services

75110 National postal activities

75111 Banking via the Post Office

75121Mail handling

Chamber 3: Labour and Collective Services

Labour recruitment Services

88918 Permanent employment agencies

88910 Labour recruitment and provision of staff

88916Private employment agencies and temporary employment services

99045 Personnel services agencies

88917 Temporary employment services

Collective services

95120 Activities of professional organisations

95155 Professional bodies

95991 Bargaining councils and dispute resolution

95992Associations, federations and umbrella bodies

Chamber 4: Management and Business Services

Business services

61421 Import and export of various metals

88000 Other business activities

88141 General consulting services

88900 Business activities not elsewhere classified

96490 Other recreational activities

99000 Other service activities

99014 Quality management and related services

99016 NGO management and services

99015Non-financial business management and management consulting

99090 Other service activities not elsewhere classified

Project management

99039 Generic project management

99056Event and conference management excluding the operation of convention centres

99056 Event management

14


Sub-sector


Chamber 5: Personal Care Services

Hair care99022 Ladies hairdressing

99023 Men’s and ladies hairdressing

Beauty treatment

99024 Beauty treatment

99041Nail technology including nail technologist, nail technicians and distributors and agencies of nail products

99042Non-allied registered perfumery including aromatic oils and related products, perfumery consultants, sales people and agencies of nail products

99043

Health and skin care, incl. health and skin care therapists, stress therapists and somatologists, slimming salons and distributors of slimming products including slimming machines

99044 Make-up artistry

99050Distributors of slimming products including slimming machines

99051Distributors of makeup products and related merchandise

Funeral services

34260 Cutting, shaping and finishing of stone

99030 Funeral and related activities

99033 Coffin making by funeral enterprises

Fashion99046 Modelling agencies

99054 Fashion design not related to clothing

Chamber 6: Real Estate and Related Services

Real estate services

50411 Decorators/interior designers and decorators

84000 Real estate activities

84100 Real estate activities with own or leased properties

84200 Real estate duties on a fee or contract basis

84201 Real estate valuation services

84202 Property management services

84203 Estate agencies

99053 Valuers, including auctioneers

The role of Chambers is to coordinate sub-sector inputs into the Services SETA’s Sector Skills Plan (SSP) by

identifying education and training needs in the various sub-sectors and liaise with relevant associations,

professional bodies, employers, government departments, Non-Governmental Organisations (NGOs),

Community-Based Organisations (CBOs), cooperatives, institutions of learning and labour organisations.

The Chambers also coordinate feedback into the education and training policies relevant to the various

sub-sectors. They monitor reports on the development and implementation of the learning programmes

within their sub-sectors. These Chambers are instrumental in identifying qualifications that the sub-sectors

need the Services SETA to develop. They also coordinate the activities of the Chamber Committees as well

as those of the Communities of Expert Practitioners (CEPs).


These activities holistically link to the key performance areas of the Chambers and their set targets as

indicated in the table below.

Strategic Activity

Annual Performance Plan Indicator

Number #

Performance Indicators

Annual Target 2013-2014

Annual Result 2013-2014

Annual Target 2014-2015

Annual Result 2014-2015

Coordinate input from Community of Expert Practitioners (CEPs) to support

needs identification and qualifications

development

5.1.2.2Number of active

Communities of Expert

Practitioners(CEPs)

10 9 10 10

Facilitate stakeholder

consultation and engagement

5.1.3.1Number of role player dialogues

conducted

15 11 30 48

16

5.1 Achievements

A. Qualification Development with Communities of Expert Practitioners (CEPs)

Significant achievements during the 2014/2015 financial year include the completion of 9 new qualifications

that were developed by Communities of Expert Practitioners (CEPs). Registration thereof is pending. These

qualifications respond to industry needs and scarce and critical skills requirements in the services sector.

Below is a list of the new qualifications that have been developed:

QUALIFICATION

ORGANISING FRAMEWORK OF OCCUPATIONS

(OFO) CODE

CHAMBER SUB-SECTOR

1. Hairdresser 514101 Personal Care Services Hairdressing

2. Workforce Manager 143905Communication and Marketing Services

Contact Centres

3. Mortician516304

Personal Care Services Funeral Services

4. Health Care Cleaner811202

Cleaning and Hiring Services

Cleaning Services

5. Recruitment Manager

121204Labour and Collective Services

Labour Recruitment Services

6. Project Manager 121905Management and Business Services

Project Management

7. Postal Front Line Worker

421105Communication and Marketing Services

Postal Services

8. Quality Manager 121908Management and Business Services

Business Services

9. Garden Worker 821401Cleaning and Hiring Services

Domestic Services


5.2 Role-Player Dialogues

A number of workshops, events and other interventions were held to communicate the agenda Services

SETA and to identify skills gaps within the services sector so as to create a balance between supply and

demand. We engaged with key stakeholder groups and role players, including industry associations,

professional bodies, employers, education and training institutions, government departments, trade

unions, cooperatives as well as learners.

Below are engagements held during the year under review:

ROLE-PLAYER DIALOGUES 2014/2015

• Hair and Beauty Salon Business Breakfast

• National Contract Cleaners Association (NCCA) Workshop

• Black Economic Empowerment Cleaners Association (BEECA) Capacitation Workshop

• Postal Services CEP

• Quality Management CEP

• Professional Body for Environmental Hygiene (PBEH) Roadshow

• Constituency Capacity Building Workshop for the Real Estate Industry

• Temporary Employment Services (TES) UCT Research Launch

• Consumer Goods Council of South Africa

• Gauteng Economic Development Workshop for the Real Estate Industry

• Professional Hair and Beauty EXPO

• Western Cape Estate Agents Consultative Dialogue

• Hairdressing Information Sharing Sessions

• PMI Technical Campus Visit

• National Contract Cleaners Association (NCCA) Annual General Meeting

• Contract Cleaning Sector Decent Work Programme Signing Ceremony

• Inter-SETA Dialogue on Skills Development in Special Economic Zones

• Global Alliance for Project Performance Standards (GAPPS) Workshop

• CAPES EXCO Meeting

• OFO Workshops – Cleaning and Hiring Chamber

• OFO Workshops - Communication and Marketing Services

• OFO Workshops - Management and Business Services

• OFO Workshops - Personnel Care Services

• OFO Workshops – Labour and Collective Services

• OFO Workshops - Real Estate and Related Services

• National Association of Bargaining Councils (NABC) Breakfast Seminar

• International Festivals & Events Association of SA (IFEA) Workshop

• South African Textile Services Association (SATSA) Workshop

18

5.3 Chamber Committees

Another key highlight during the 2014/2015 financial year was the introduction of a Chamber Committees’

nomination process.

Following the prescribed selection process, Chamber Committees were duly established. As per

regulatory requirements, an induction was held for the Chamber Committees where the applicable terms

of reference were agreed upon and a code of conduct officially adopted. Since the induction, all six

Chamber Committees have had one meeting per quarter, as stipulated by the Constitution of the Services

SETA.

5.4 Challenges

One of the main challenges facing employers in the services sector is the need for the professionalisation

and regulation of occupations. The Services SETA’s role in advancing this imperative is becoming a pressing

issue, and relevant qualifications have to be developed to support this need.

The development of growth and development plans by the Chambers will also go a long way in

articulating the demand and growth trends in the services sector in order to help learners to identify

relevant occupations for employment.

5.5 Areas of improvement

The Chambers are currently hard at work towards improving the representation of organised labour in some

of the Chamber Committees for the 2015/2016 financial year. The Chambers have already started mobilising

constituencies to actualise this goal. They are also working closely with the respective Communities of

Expert practitioners to ensure regular updates of the Organising Framework of Occupations (OFO) codes

in consultation with respective industries.

5.6 Way forward and future plans

The Chambers have identified two areas for improvement and interventions to be implemented in the

2015/2016 financial year as outlined below:

• Next cycle of qualifications to be developed for 2015/2016 as part of the new QCTO landscape:

Occupationally Directed Qualification Development

• Chamber Growth and Development Plans to be developed.


6. SPECIAL PROJECTS

6.1 Introduction

The Services SETA’s Special Projects Department was established in August 2014 to attend to skilling needs

through community-based organisations, non-profit organisations, municipalities, public institutions and

government departments.

As these entities don’t pay skills levies, they have in the past not benefited to the extent they should

from skills development interventions and opportunities. Government wishes to reverse this unfortunate

situation and has thus mandated all SETAs to broaden their outlook and to reach out, in particular, to

under serviced communities, unemployed youth and people with disabilities who live in townships and

rural areas.

Between August 2014 and March 2015, a total of 2,495 beneficiaries participated in the various skills

development and learning interventions that the Services SETA Special Projects Department undertook as

a response to National Government’s call.

These interventions included:

• Initiating a process of establishing Skills Development Centres

• Organising and hosting three Skills Development and Career Guidance Expos

• Placing unemployed youth in apprenticeships, learnerships and internships

• Launching a dedicated Learner Portal.

6.2 Skills Development Centres

The Services SETA Special Projects Department is in the process of establishing Skills Development Centres

in Mangaung, Free State, Klerksdorp, North West; and Merrivale, Kokstad, Kwa Ximba, KwaZulu-Natal; and

Cala, Eastern Cape.

Significant progress has been made so far and it is expected that these Centres will be operational by the

end of the 2015/2016 financial year.

Although the Services SETA is establishing these centres, they are intended for the benefit of not only

the services sector but also the other sectors of the South African economy. The Services SETA Skills

Development Centres will therefore be open to all South Africans in need of skills development interventions.

6.3 Skills Development and Career Guidance Expos

During the year under review the Special Projects Department organised and co-hosted expos in

underserviced areas of KwaZulu-Natal (Kokstad), Limpopo (Sekhukhune), and Gauteng (Kliptown).

These expos were well attended by the local young people with 870 visiting the Expo in Kokstad;

1 695 in Sekhukhune and 113 in Kliptown. Various TVET colleges, corporate companies and other

employers, municipalities and other SETAs participated in these expos and contributed to making them

resounding successes.

20

High percentages of the youth living in these areas are not in employment or in education and training and

have no means of accessing the necessary career and training information. For many it was the first time

they received career guidance or attended a career exhibition.

The expos were held at the beginning of the 2015 academic year (February and March). This favourable

timing made it possible for the Services SETA to place a number of young people – who had no other

training options available – in learning programmes running in the current year.

6.4 Learning Programmes

The Special Projects Department recruited young people during its Skills Development and Career

Guidance Expos and placed them in, inter alia:

• Apprenticeships

• Learnerships and

• Internships.

In addressing youth unemployment, the Special Projects Department concentrates on interventions that

culminate in a qualification that can lead to meaningful employment or entrepreneurship.

There is also an emphasis on increasing the number of young artisans as per the directive from the

Department of Higher Education and Training, and informed by the country’s acute shortage of artisans.

6.5 Learner Portal

During the year under review the Special Projects Department launched a Learner Portal to serve as a

digital contact point for learners and employers. Learners can upload their resumés and employers in

the services sector can access these resumés and recruit learners for apprenticeships, learnerships, jobs,

internships, bursaries, mentoring and job-shadowing opportunities. The Services SETA Learner Portal is

accessible via the Services SETA’s website.

6.6 Future Plans

Moving forward a key objective of the Department is to capacitate and support struggling NPOs and Co-

operatives so that they may be in a position to access funding opportunities available from the Services

SETA.


Part BPerfomanceInformation

22

1. PERFORMANCE INFORMATION REPORT ON PRE-DETERMINED OBJECTIVES 2014/15

Structure of results reporting

The Strategic Plan and Annual Performance Plan structured the Services SETA’s pre-determined objectives

into eight programmes. Each programme has one strategic goal and purpose, several strategic objectives

and activities, each setting out performance indicators and corresponding annual and quarterly targets.

Results achieved between 1 April 2014 and 31 March 2015, or as at the end of this reporting period,

together with a result and variance explanation are tabulated by programme and performance indicator.

Significant improvements were effected to specific, measurable, achievable, relevant and/or time-bound

criteria and further improvements in outcomes-based measures are planned for the forthcoming period.

By way of introduction, the programme structure and result components are summarised in the table

below, followed by a brief overview of programme achievements.

ProgrammeNumber

ProgrammeTitle

Sub-programmes

Strategic Objectives

Strategic Activities

PerformanceIndicators

1 Governance - 3 7 14

2 Administration 3 10 16 24

2.1 Finance - 5 7 10

2.2 Corporate Services - 4 8 13

2.3 Legal Services - 1 1 1

3 Mandatory Grants - 2 4 4

4 Learning Interventions 2 8 23 43

4.1 Learning Programmes - 1 9 261

4.2 Priority Programmes - 7 14 17

5 Stakeholder Liaison and Provincial Implementation

1 4 11 11

5.1 Stakeholder Liaison - 4 11 11

6 Qualifications and Quality Management

- 4 8 18

7 Research, Strategic Planning and Monitoring and Evaluation

- 4 6 13

8 Project Management - 2 3 3

ALL 8 6 37 78 130

Mid-year changes to Performance Indicators and Targets

The Accounting Authority of the Services SETA resolved mid-year to no longer pursue a selection of

Performance Indicators and associated targets contained in the Annual Performance Plan 2014/15. These

Performance Indicators are operational in nature and budget adjustments were effected accordingly. The

changes are attributable to changes in strategy, structure and/or business processes. These Performance

Indicators are reported below as redundant.

(Footnotes)1 Two Performance Indicators with zero targets are excluded from the consolidated calculations but included in the APR as they form part of the SLA with DHET. See performance indicators C.4.1.1.1.7 and C.4.1.1.2.7


Performance Indicator Rating Scale

Target achieved or exceeded

Target partially achieved

Target not achieved

Redundant

Summary of Performance Indicator Ratings by Programme

ProgrammePerformance

Indicators Achieved


Partially achieved


Not achieved

Performance Indicators Redundant

1 11/14 3/14 0/14 0

2 10/19 7/19 2/19 5

3 2/4 2/4 0/4 0

4 17/42 17/42 8/42 1

5 4/7 2/7 1/7 4

6 2/12 10/12 0/12 6

7 7/7 0/7 0/7 6

8 0/0 0/0 0/0 3

ALL 53/105 41/105 11/105 25

Comparative Indicator Rating between 2013/14 and 2014/15

A significant improvement has been achieved in overall organisational performance against performance

indicators and targets between the previous and current financial years. This comparative rating is presented

in the table below and shows an increase from 26% to 50% of performance indicators achieved and a

reduction from 44% to 10% of performance indicators not achieved.

Rating2013/14 2014/15

# % # %

Performance Indicators Achieved 31/117 26% 53/105 50%

Performance Indicators Partially Achieved

34/117 29% 41/105 39%

Performance Indicators Not Achieved 52/117 44% 11/105 10%

Programme 1: Governance

This programme comprises of three strategic objectives namely, Governance; Risk and Fraud Prevention;

and Compliance and Internal Audits. Under the leadership of the Accounting Authority six new Chamber

Committees were established and operationalised in accordance with the SETA Constitution. The strong

commitment of the Accounting Authority and its Committees is evidenced by high levels of participation,

ensuring proper strategic oversight and accountability. Increased management capacity in Compliance

and Risk Management resulted in significant improvement in risk and fraud management. Performance

results for audit response times, and tracking and implementation of action plans, whilst improved, still

show room for further improvement.

24

Programme 2: Administration

This programme comprises of three sub-programmes, namely Finance, Corporate Services, including

Human Resources; and Legal Services. Increased management capacity in all functions resulted in

significant improvement in performance results. On the financial scorecard improvements in the overall

audit outcome; monitoring of payment processing timeframes; a drop in irregular expenditure from 3%

to 2% of total expenditure; and significant improvement in expenditure variance to budget from overs-

spending of 24% to underspending of 10% are highlighted. The internal business process for awarding of

Discretionary Grant funding was streamlined and strengthened with turnaround times being even shorter

than targeted.

Human resource requirements were constantly realigned to changes in business processes and

requirements for adequate and sustainable capacity in service delivery were prioritised. This resulted in

little change to the vacancy and turnover rates. Performance management, coupled with the creation

of a learning organisation, was implemented in the middle of the reporting period. This dramatically

increased organisational performance in the latter quarters. The volume of contracts processed, that is

729, correlates with the considerable increase in commitments from an opening balance of R296 million

to a closing balance of R1.836 billion, effectively a 519% increase.

Programme 3: Mandatory Grants

Some improvement in Mandatory Grant submissions and reimbursements can be noted from the previous

financial year. Technical assistance alone may be inadequate to increase the number of employer

submissions. Guaranteed shorter turnaround times for reimbursement may provide the added incentive

needed. Mandatory Grant reconciliations are being conducted to address all outstanding claims and

business process improvements are being effected.

Programme 4: Learning Interventions

The learning intervention enrolment and completion targets are for Services SETA-funded interventions

awarded through Discretionary Grants. Discretionary Grants are awarded at the discretion of the

Accounting Authority. The majority of targets are achieved through a competitive public invitation process.

Some allocations are granted as Special Projects aligned to national policy priorities and transformational

imperatives. Non-Services SETA funded learning falls outside of the Services SETA’s direct control, therefore

learner targets for unfunded learning are not pre-determined. Turnaround times for processing unfunded

learning intervention applications have been established for the forthcoming financial year.

A total of 12,480 Services SETA funded learners were reported as enrolled during this reporting period, of

which 36% (4,511/12,480) were for prior year targets where there was either an interruption in implementation

or lack of supporting evidence for inclusion in the 2013/14 Annual Report. This means that the proportion

of funded learners enrolled for the 2014/15 target was 64% (7,969/12,480), representing 53% achievement

of the annual target. The current year results are disaggregated across transformational imperatives in the

table below. Commitments concluded as at the end of this reporting period exceed the variance.


SET

A f

un

ded

lear

nin

g in

terv

enti

on

s

En

rolm

ents

20

13/1

42

014

/15

Un

emp

loye

dFe

mal

eB

lack

Dis

abili

tyYo

uth

Ru

ral

Lear

ners

hip

s5,

68

23,

66

32

,32

86

4%

2,5

03

68

%3,

53

89

7%13

54

%2

,83

177

%9

742

7%

Bu

rsar

ies

744

30

60

0%

169

55%

26

38

6%

21%

149

49

%9

3%

Skill

s P

rog

ram

mes

1,0

32

789

00

%58

574

%78

59

9%

10

%3

87

49

%0

0%

Inte

rnsh

ips

1,17

22

,48

324

710

%1,

84

374

%2

,472

99.5

%3

0%

2,3

98

97%

1,0

68

43

%

Art

isan

s10

06

43

00

%19

83

1%6

40

99.5

%0

0%

62

99

8%

00

%

Reco

gn

itio

n o

f P

rio

r Le

arn

ing

1,3

140

00

%0

0%

00

%0

0%

00

%0

0%

Ad

ult E

du

cat

ion

an

d

Trai

nin

g578

85

00

%6

273

%8

49

9%

00

%2

83

3%

00

%

TO

TALS

10,6

22

7,9

69

2,5

753

2%

2,8

57

36

%7,

782

98

%14

12%

6,4

22

81%

2,0

51

26

%

Co

mp

letio

n r

ates

were

larg

ely

un

der

ach

ieve

d in

th

is r

ep

ort

ing

peri

od

as

targ

ets

were

bas

ed

on

pri

or

year

en

rolm

en

t ta

rgets

inst

ead

of

actu

al e

nro

lmen

t re

sults.

En

rolm

en

t re

sults

for

20

13/1

4 r

ep

rese

nte

d 3

1% o

f th

e t

arg

et. I

t is

no

ted

th

at a

nu

mb

er

of

pri

or

year

pro

jects

exp

eri

en

ced

so

me in

terr

up

tion

in im

ple

men

tatio

n.

It is

fu

rth

er

no

ted

th

at t

he p

rocess

of

qu

ality

ass

uri

ng

lear

ner

ach

ieve

men

ts, t

hat

is f

rom

co

mp

letio

n t

o c

ert

ificat

ion

, fu

rth

er

ext

en

ds

the p

roje

ct

imp

lem

en

tatio

n

du

ratio

n b

eyo

nd

fin

ancia

l year

s.

Th

e S

erv

ices

SETA

co

mm

itted

fu

nd

ing

fo

r eig

ht

Ru

ral Sk

ills

Deve

lop

men

t C

en

tres

du

rin

g t

his

fin

ancia

l ye

ar. T

hese

are

lo

ng

-term

initi

ativ

es

that

req

uire o

ng

oin

g

sup

po

rt a

nd

mu

lti-

secto

ral c

olla

bo

ratio

n. A

s at

the e

nd

of t

his

rep

ort

ing

peri

od

fou

r o

ut o

f eig

ht R

ura

l Ski

lls D

eve

lop

men

t Cen

tres

had

co

mm

en

ced

imp

lem

en

tatio

n

with

est

ablis

hed

pro

ject p

lan

s an

d p

roje

ct t

eam

s. P

rog

ress

in p

rovi

din

g a

dd

itio

nal

su

pp

ort

to le

arn

ers

with

dis

abili

ty a

nd

ru

ral l

ear

ners

is n

ota

ble

an

d im

ple

men

tatio

n

will

be p

rio

ritis

ed

in t

he f

ort

hco

min

g fi

nan

cia

l year

.

26

Programme 5: Stakeholder Relations

One of the biggest challenges is having updated and accessible stakeholder information that supports

service delivery across all core business functions. Efficient and effective solutions to this problem are

being explored. Provincial Offices play a critical role in providing technical assistance and achievements in

this regard are notable. Notwithstanding that, services must be rendered on an outreach basis as opposed

to on demand. The establishment of Provincial Forums and the development of Provincial Plans provide

additional mechanisms for structured communication and consultation to support the implementation

of national pre-determined objectives. Over and above the Chamber Committees, chamber operations

promote targeted and sector-specific capacity building. Achievements in the number of workshops

conducted exceeded the target.

Programme 6: Qualifications and Quality Management

The most significant change effected to quality management was building internal capacity and doubling

the number of external evaluators. Previously this core business function was outsourced at great cost

and supply was insufficient to meet demand, resulting in an ever-increasing backlog. The benefits of this

change are already evident in improved turnaround times and a reduced backlog. The challenge, for which

a plan has already been initiated, is separating historical and current service delivery. Collaboration with

the QCTO has been strengthened and will continue to be strengthened in the forthcoming financial year.

Programme 7: Research, Strategic Planning, and Monitoring and Evaluation

Extensive Accounting Authority and Management engagement in Sector Skills and Strategic Planning

resulted in qualitative improvements in strategic direction and oversight. Improved internal controls in

performance monitoring and reporting included documenting data management practices and technical

indicator descriptions; signed declarations of portfolios of evidence; and the development of tools and

internal verification, which in turn strengthened data validity, completeness and accuracy. The decision to

delay impact evaluations was informed by operational requirements.

Programme 8: Project Management

The 2014/15 Annual Performance Plan adopted a project management approach to contract management.

A mid-year organisational decision to replace the project management office with a project coordination

unit under core business fundamentally changed the business processes related to projects and project

management. As such this programme and its performance indicators and targets became redundant.


SSE

TA

An

nu

al P

erfo

rman

ce R

epo

rt f

or

the

per

iod

1 A

pri

l 20

14 –

31

Mar

ch 2

015

Pro

gra

mm

e 1:

Go

vern

ance

Stra

teg

ic

Ob

ject

ive

1.1.

1:G

ove

rnan

ce s

tru

ctu

res

and

pro

cess

es

est

ablis

hed

, cap

acita

ted

an

d m

ain

tain

ed

in a

cco

rdan

ce w

ith t

he S

tan

dar

d C

on

stitu

tion

of

SETA

R

eg

ula

tion

s

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Est

ablis

h a

nd

co

ord

inat

e

go

vern

ance

stru

ctu

res

1.1.

1.1

Nu

mb

er

of

fun

ctio

nal

g

ove

rnan

ce s

tru

ctu

res

1212

Six

fun

ctio

nal

Go

vern

ance S

tru

ctu

res:

1.

Acco

un

ting

Au

tho

rity

2

. Exe

cu

tive C

om

mitt

ee

3. A

ud

it C

om

mitt

ee

4. F

inan

ce C

om

mitt

ee

5. R

em

un

era

tion

Co

mm

ittee

6. G

ove

rnan

ce R

isk

and

Str

ateg

y C

om

mitt

ee

Six

fun

ctio

nal

Ch

amb

er

Co

mm

ittees:

1. C

lean

ing

an

d H

irin

g S

erv

ices

2. C

om

mu

nic

atio

n a

nd

Mar

ketin

g

Serv

ices

3. L

abo

ur

and

Co

llectiv

e S

erv

ices

4. M

anag

em

en

t an

d B

usi

ness

Serv

ices

5. P

ers

on

al C

are S

erv

ices

6. R

eal

Est

ate a

nd

Rela

ted

Serv

ices

1.1.

1.2

Perc

en

tag

e a

tten

dan

ce r

ate

of

sch

ed

ule

d A

cco

un

ting

A

uth

ori

ty m

eetin

gs

70%

81%

81%

ave

rag

e a

ch

ieve

d f

or

Acco

un

ting

A

uth

ori

ty m

eetin

gs

held

du

rin

g t

he

finan

cia

l year

1.1.

1.3

Perc

en

tag

e a

tten

dan

ce r

ate

of

sch

ed

ule

d A

cco

un

ting

A

uth

ori

ty c

om

mitt

ee

meetin

gs

70%

81%

81%

ave

rag

e a

ch

ieve

d a

cro

ss 1

1 C

om

mitt

ees,

n

amely

: 1.

Exe

cu

tive C

om

mitt

ee

2. A

ud

it C

om

mitt

ee

3. F

inan

ce C

om

mitt

ee

4. R

em

un

era

tion

Co

mm

ittee

5. G

ove

rnan

ce, R

isk

and

Str

ateg

y C

om

mitt

ee

6. C

lean

ing

an

d H

irin

g S

erv

ices

Ch

amb

er

Co

mm

ittee

7. C

om

mu

nic

atio

n a

nd

Mar

ketin

g S

erv

ices

Ch

amb

er

Co

mm

ittee

8. L

abo

ur

and

Co

llectiv

e S

erv

ices

Ch

amb

er

Co

mm

ittee

9. M

anag

em

en

t an

d B

usi

ness

Serv

ices

Ch

amb

er

Co

mm

ittee

10. P

ers

on

al C

are S

erv

ices

Ch

amb

er

Co

mm

ittee

11. R

eal

Est

ate a

nd

Rela

ted

Serv

ices

Ch

amb

er

Co

mm

ittee

28

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Est

ablis

h a

nd

co

ord

inat

e

go

vern

ance

stru

ctu

res

1.1.

1.4

Min

imu

m n

otic

e o

f A

nn

ual

G

en

era

l Meetin

g a

dve

rtis

ed

in

med

ia3

0 c

alen

dar

day

s3

0 c

alen

dar

day

s

No

tice o

f th

e A

nn

ual

Gen

era

l Meetin

g

was

pu

blis

hed

in t

he m

ed

ia o

n 1

9

Octo

ber

20

14 a

nd

to

ok

pla

ce o

n 2

0

No

vem

ber

20

14

Ap

pro

val

of

Stra

teg

ic

and

An

nu

al

Perf

orm

ance

Pla

ns

co

nta

inin

g

bu

dg

ets

, an

d t

he

Secto

r Sk

ills

Pla

n

and

Serv

ice L

eve

l A

gre

em

en

t as

an

nexu

res

1.1.

1.5

Stra

teg

ic a

nd

An

nu

al

Perf

orm

ance p

lan

s co

nta

inin

g t

he b

ud

get

and

an

nexu

res

app

rove

d a

nd

su

bm

itted

as

pre

scri

bed

20

15/1

6 p

lan

s as

p

resc

rib

ed

20

15/1

6 p

lan

s as

p

resc

rib

ed

Sub

mis

sio

n d

ates

inclu

de 2

9 A

ug

ust

20

14,

15 N

ove

mb

er

20

14 a

nd

16

Jan

uar

y 2

015

Ap

pro

val o

f q

uar

terl

y p

erf

orm

ance a

nd

fin

ancia

l rep

ort

s

1.1.

1.6

Qu

arte

rly

perf

orm

ance a

nd

fin

ancia

l rep

ort

s ap

pro

ved

an

d s

ub

mitt

ed

as

pre

scri

bed

10 w

ork

ing

day

s af

ter

eac

h q

uar

ter

10 w

ork

ing

day

s af

ter

eac

h q

uar

ter

Sub

mitt

ed

on

th

e f

ollo

win

g p

resc

rib

ed

d

ates:

Q4

in Q

1: 1

5 A

pri

l 20

14

Q1

in Q

2:

15 J

uly

20

14Q

2 in

Q3

: 15

Octo

ber

20

14Q

3 in

Q4

: 16

Jan

uar

y 2

015

Ap

pro

val o

f au

dite

d a

nn

ual

re

po

rt1.

1.1.

7A

ud

ited

an

nu

al r

ep

ort

ap

pro

ved

an

d s

ub

mitt

ed

as

pre

scri

bed

20

13/1

4 a

s p

resc

rib

ed

20

13/1

4 a

s p

resc

rib

ed

Sub

mitt

ed

28

Au

gu

st 2

014

ah

ead

of

31

Au

gu

st 2

014

dead

line


Stra

teg

ic

Ob

ject

ive

1.1.

2:

En

terp

rise

-wid

e r

isk

and

fra

ud

man

agem

en

t fr

amew

ork

s an

d p

reve

ntio

n s

trat

eg

ies

imp

lem

en

ted

red

ucin

g f

rau

d a

nd

co

rru

ptio

n a

nd

st

ren

gth

en

ing

org

anis

atio

nal

eff

ectiv

en

ess

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Stra

teg

ic r

isks

m

on

itore

d in

lin

e

with

ris

k ap

petit

e

and

to

lera

nce

leve

ls

1.1.

2.1

Freq

uen

cy

of

risk

mo

nito

rin

g

rep

ort

s su

bm

itted

to

th

e

Acco

un

ting

Au

tho

rity

Qu

arte

rly

Qu

arte

rly

Sub

mitt

ed

on

th

e f

ollo

win

g d

ates:

Q1:

9 A

pri

l 20

14

Q2

: 24

Ju

ly 2

014

Q3

: 11

Decem

ber

20

14Q

4:

31

Mar

ch

20

15

1.1.

2.2

Perc

en

tag

e o

f fr

aud

an

d

co

rru

ptio

n in

cid

en

ts

rep

ort

ed

inve

stig

ated

100

%10

0%

3

/3 c

ases

rep

ort

ed

were

inve

stig

ated

1.1.

2.3

Perc

en

tag

e o

f fr

aud

an

d

co

rru

ptio

n c

ases

final

ised

in

tern

ally

with

in 1

2 m

on

ths

100

%10

0%

3

/3 c

ases

were

fin

alis

ed

with

in 1

2 m

on

ths

du

rin

g t

his

rep

ort

ing

peri

od

Mech

anis

m

for

pro

tecte

d

dis

clo

sure

est

ablis

hed

an

d

mai

nta

ined

to

re

du

ce t

he r

isk

of

fou

l pla

y

1.1.

2.4

Perc

en

tag

e o

f d

ere

lictio

n o

f d

utie

s an

d m

isco

nd

uct

cas

es

clo

sed

with

in 1

2 m

on

ths

100

%10

0%

8

/8 c

ases

were

reso

lved

with

in 1

2 m

on

ths

30

Stra

teg

ic

Ob

ject

ive

1.1.

3:

Co

mp

lian

ce w

ith s

tatu

tory

an

d r

eg

ula

tory

pro

visi

on

s an

d, i

nte

rnal

po

licie

s an

d p

roced

ure

s m

on

itore

d a

nd

str

en

gth

en

ed

to

miti

gat

e r

isk

and

imp

rove

org

anis

atio

nal

perf

orm

ance

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Rep

ort

ing

im

pro

vem

en

t in

m

anag

ing

inte

rnal

an

d e

xtern

al a

ud

it fin

din

gs

1.1.

3.1

Perc

en

tag

e in

tern

al a

ud

it fin

din

gs

resp

on

ded

to

by

man

agem

en

t w

ithin

du

e

dat

e

100

%9

0%

23

4/2

60

inte

rnal

au

dit

find

ing

s w

ere

re

spo

nd

ed

to

by

man

agem

en

t w

ithin

th

e d

ue d

ate. T

he fi

nd

ing

s w

ere

is

sued

acro

ss 1

2 In

tern

al A

ud

it ar

eas

co

nd

ucte

d d

uri

ng

th

e r

ep

ort

ing

peri

od

. C

lear

er

co

mm

un

icat

ion

an

d im

pro

ved

co

ord

inat

ion

an

d m

on

itori

ng

is r

eq

uired

to

imp

rove

resp

on

se t

imes

and

th

e q

ual

ity

of

resp

on

ses

1.1.

3.2

Perc

en

tag

e e

xtern

al a

ud

it fin

din

gs

resp

on

ded

to

by

man

agem

en

t w

ithin

du

e

dat

e

100

%9

5%

81/

85 e

xtern

al a

ud

it fin

din

gs

were

re

spo

nd

ed

to

by

man

agem

en

t w

ithin

du

e

dat

e. T

hese

fin

din

gs

were

issu

ed

du

rin

g

the a

ud

it o

f th

e 2

013

/14

an

nu

al r

ep

ort

. C

lear

er

co

mm

un

icat

ion

an

d im

pro

ved

co

ord

inat

ion

an

d m

on

itori

ng

is r

eq

uired

to

imp

rove

resp

on

se t

imes

and

th

e q

ual

ity

of

resp

on

ses

1.1.

3.3

Perc

en

tag

e o

f in

tern

al

and

ext

ern

al a

ud

it fin

din

gs

reso

lved

with

in d

ue d

ate

90

%79

%

20

0/2

54

inte

rnal

an

d e

xtern

al a

ud

it fin

din

gs

reso

lved

with

in d

ue d

ate.

Reso

lutio

n d

ue d

ates

were

po

stp

on

ed

fo

r so

me o

f th

e fi

nd

ing

s d

ue t

o a

mb

itio

us

timefr

ames


Pro

gra

mm

e 2

: Ad

min

istr

atio

n

Stra

teg

ic

Ob

ject

ive

2.1

.1:

Sup

ply

ch

ain

man

agem

en

t p

rocess

es

are f

air, t

ran

spar

en

t, e

qu

itab

le, c

ost

-eff

ectiv

e a

nd

co

mp

etit

ive

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Dem

and

pla

nn

ing

2.1

.1.1

Ap

pro

ved

dem

and

pla

nn

ing

sc

hed

ule

su

bm

itted

to

N

atio

nal

Tre

asu

ry a

nn

ual

ly3

0 A

pri

l 20

143

0 A

pri

l 20

14Su

bm

itted

as

pre

scri

bed

Stra

teg

ic

Ob

ject

ive

2.1

.2:

Ap

plic

atio

n a

nd

ap

pro

val p

rocess

fo

r fu

nd

ed

an

d u

nfu

nd

ed

lear

nin

g in

terv

en

tion

s m

anag

ed

tra

nsp

aren

tly,

fai

rly

and

eq

uita

bly

an

d

timely

feed

bac

k an

d s

up

po

rt p

rovi

ded

to

sta

keh

old

ers

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

2.1

.2.1

Perc

en

tag

e o

f co

mp

lian

t ap

plic

atio

ns

eva

luat

ed

w

ithin

45 c

alen

dar

day

s o

f clo

sin

g d

ate

100

%N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Man

age s

up

ply

ch

ain

pro

cess

fo

r th

e a

war

din

g

of

dis

cre

tion

ary

gra

nt

fun

din

g

2.1

.2.2

Perc

en

tag

e o

f ap

pro

ved

ap

plic

atio

ns

awar

ded

with

in

120

cal

en

dar

day

s o

f clo

sin

g

dat

e10

0%

100

%

183

/18

3 a

pp

rove

d a

pp

licat

ion

s aw

ard

ed

w

ithin

12

0 c

alen

dar

day

s o

f clo

sin

g d

ate.

Two

pu

blic

invi

tatio

ns

for

Dis

cre

tion

ary

Gra

nt

fun

din

g w

ere

ad

vert

ised

du

rin

g

Q3

with

clo

sin

g d

ates

of

5 D

ecem

ber

20

14 a

nd

30

Jan

uar

y 2

015

resp

ectiv

ely

. A

llocat

ion

s fo

r th

ese

ro

un

ds

were

ap

pro

ved

an

d a

war

ded

in F

eb

ruar

y an

d M

arch

20

15, c

ove

rin

g 2

96

lear

nin

g

inte

rven

tion

pro

jects

, with

in t

he t

arg

ete

d

turn

aro

un

d p

eri

od

32

Stra

teg

ic

Ob

ject

ive

2.1

.3:

Fin

ancia

l po

licie

s an

d p

ractic

es

co

ntin

ual

ly im

pro

ved

an

d c

orr

ectiv

e a

ctio

ns

imp

lem

en

ted

rein

forc

ing

co

mp

lian

ce t

o a

ch

ieve

a c

lean

au

dit

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Co

ord

inat

e

finan

cia

l au

dits

an

d f

acili

tate

re

solu

tion

of

find

ing

s

2.1

.3.1

Ou

tco

me o

f au

dit

of

An

nu

al

Fin

ancia

l Sta

tem

en

tsU

nq

ual

ified

Un

qu

alifi

ed

Th

e A

ud

itor-

Gen

era

l fin

alis

ed

th

eir

rep

ort

o

n t

he 2

013

/14

An

nu

al R

ep

ort

du

rin

g Q

2.

Th

e e

ntit

y w

ill c

on

tinu

e t

o s

triv

e f

or

a re

du

ctio

n in

fin

din

gs

and

co

mm

en

ts

Stra

teg

ic

Ob

ject

ive

2.1

.4:

All

cla

ims

and

pay

men

ts m

ust

be t

imely

exe

cu

ted

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Pro

cess

ing

of

pay

men

ts a

nd

sa

fe k

eep

ing

of

rela

ted

reco

rd

2.1

.4.1

Perc

en

tag

e o

f p

aym

en

ts

pro

cess

ed

with

in 3

0

cal

en

dar

day

s10

0%

86

%

2,2

98

/2,6

79 p

aym

en

ts p

rocess

es

with

in

30

cal

en

dar

day

s. C

on

tinu

ou

sly

imp

rove

su

pp

lier, s

take

ho

lder

and

en

d-u

ser

un

ders

tan

din

g o

f ac

cep

tan

ce c

rite

ria

and

su

pp

ort

ing

do

cu

men

tatio

n n

ecess

ary

to

facili

tate

tim

ely

pay

men

t p

rocess

ing

Acq

uis

itio

n

man

agem

en

t

2.1

.4.2

Perc

en

tag

e o

f ir

reg

ula

r exp

en

ditu

re0

%0

%

Irre

gu

lar

exp

en

ditu

re in

Q1

and

Q2

of

1.8

%

(R10

,40

5,4

20

/ R

58

4,9

18,0

00

) w

as

co

nd

on

ed

by

the A

cco

un

ting

Au

tho

rity

an

d h

en

ce n

ot

reg

ard

ed

as

irre

gu

lar

2.1

.4.3

Perc

en

tag

e o

f w

aste

ful a

nd

fr

uitl

ess

exp

en

ditu

re

0%

0.0

2%

A p

en

alty

was

incu

rred

fo

r o

ne d

ay’s

late

p

aym

en

t to

SA

RS

du

rin

g q

uar

ter

1 o

f R

144

,074

/R58

4,9

18,0

00

, no

tificat

ion

of

wh

ich

was

receiv

ed

du

rin

g Q

4. A

wai

ver

ap

plic

atio

n h

as b

een

su

bm

itted

to

SA

RS


Stra

teg

ic

Ob

ject

ive

2.1

.5:

Reve

nu

e a

nd

exp

en

ditu

re m

anag

ed

with

in p

lan

ned

an

d a

pp

rove

d b

ud

gets

an

d r

ep

ort

ing

co

nd

ucte

d in

acco

rdan

ce w

ith s

tatu

tory

re

qu

irem

en

ts

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Mo

nito

rin

g o

f exp

en

ditu

re

thro

ug

h

man

agem

en

t ac

co

un

ts

2.1

.5.1

Dra

ft F

inan

cia

l Rep

ort

s su

bm

itted

fo

r ap

pro

val

with

in p

resc

rib

ed

tim

efr

ames

3 w

ork

ing

day

s af

ter

eac

h

qu

arte

r

3 t

o 1

1 w

ork

ing

d

ays

afte

r eac

h

qu

arte

r

Sub

mitt

ed

fo

r ap

pro

val o

n t

he f

ollo

win

g

dat

es:

Q4

in Q

1: 1

5 A

pri

l 20

14

Q1

in Q

2:

3 J

uly

20

14Q

2 in

Q3

: 3

Octo

ber

20

14Q

3 in

Q4

: 6

Jan

uar

y 2

015

2.1

.5.2

Max

imu

m p

erc

en

tag

e

exp

en

ditu

re v

aria

nce t

o

bu

dg

et

10%

9%

Ad

min

istr

atio

n s

urp

lus

was

R16

,22

3,0

00

an

d t

ota

l in

co

me r

eceiv

ed

fo

r A

dm

inis

trat

ion

pu

rpo

ses

was

R

182

,816

,00

0. M

on

itori

ng

an

d t

racki

ng

o

f ad

min

istr

atio

n e

xpen

ditu

re a

gai

nst

in

co

me r

eceiv

ed

resu

lted

in s

ign

ifican

t im

pro

vem

en

t w

hen

co

mp

ared

to

th

e

pre

vio

us

rep

ort

ing

peri

od

Dra

ftin

g o

f A

nn

ual

Fin

ancia

l St

atem

en

ts f

or

aud

itin

g

2.1

.5.3

On

tim

e s

ub

mis

sio

n o

f d

raft

A

nn

ual

Fin

ancia

l Sta

tem

en

ts3

1 M

ay 2

014

31

May

20

14Su

bm

itted

as

pre

scri

bed

34

Stra

teg

ic

Ob

ject

ive

2.2

.1:

Peo

ple

with

th

e r

eq

uired

kn

ow

led

ge, c

om

pete

ncie

s an

d b

eh

avio

urs

are

recru

ited

, reta

ined

an

d s

up

po

rted

to

imp

rove

ind

ivid

ual

p

rod

uctiv

ity a

nd

org

anis

atio

nal

perf

orm

ance

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Recru

itmen

t

2.2

.1.1

Em

plo

yee v

acan

cy

rate

Belo

w 1

0%

36

%

318

/40

9 p

ost

s id

en

tified

on

th

e

org

anis

atio

nal

str

uctu

re w

ere

bu

dg

ete

d

for

bas

ed

on

cri

tical

ity. 1

15/3

18 b

ud

gete

d

po

sts

were

vac

ant

as a

t th

e e

nd

of

the

rep

ort

ing

peri

od

. Recru

itmen

t fo

r se

vera

l fu

nd

ed

vac

ancie

s h

ad c

om

men

ced

2.2

.1.2

Em

plo

yee t

urn

ove

r ra

teB

elo

w 8

%13

%

27

em

plo

yees

resi

gn

ed

co

mp

ared

to

a

clo

sin

g b

alan

ce o

f 2

03

em

plo

yees

on

pay

roll.

Org

anis

atio

nal

str

uctu

re

real

ign

men

t to

ch

ang

ing

bu

sin

ess

p

rocess

es

and

op

era

tion

al r

eq

uirem

en

ts

too

k p

lace d

uri

ng

Q1,

resu

ltin

g in

a

hig

her

turn

ove

r ra

te t

han

an

ticip

ated

. T

his

was

co

mp

lem

en

ted

by

23

ext

ern

al

app

oin

tmen

ts e

ffecte

d d

uri

ng

th

e s

ame

peri

od

Ind

ivid

ual

p

erf

orm

ance

man

agem

en

t an

d

deve

lop

men

t

2.2

.1.3

Perc

en

tag

e o

f em

plo

yees

with

ap

pro

ved

perf

orm

ance

pla

ns

90

%9

4%

191/

20

3 e

mp

loye

es

on

pay

roll

as a

t th

e

en

d o

f th

is r

ep

ort

ing

peri

od

had

sig

ned

p

erf

orm

ance a

gre

em

en

ts. A

cu

ltu

re o

f p

erf

orm

ance h

as b

een

dri

ven

fro

m t

he

top

do

wn

th

rou

gh

th

e in

tro

du

ctio

n o

f a

perf

orm

ance m

anag

em

en

t sy

stem

an

d

co

nclu

sio

n o

f p

erf

orm

ance a

gre

em

en

ts.

Th

e im

pac

t th

ere

of

was

evi

den

t in

Q4

p

erf

orm

ance r

esu

lts


Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

2.2

.1.4

Perc

en

tag

e o

f em

plo

yees

that

receiv

ed

co

ntin

uo

us

pro

fess

ion

al d

eve

lop

men

t6

0%

61%

141/

23

0 t

ota

l em

plo

yees

en

gag

ed

du

rin

g

the r

ep

ort

ing

peri

od

receiv

ed

co

ntin

uo

us

pro

fess

ion

al d

eve

lop

men

t. A

cu

ltu

re o

f le

arn

ing

has

been

incu

lcat

ed

wh

ere

by

em

plo

yees

hav

e b

een

en

co

ura

ged

an

d

sup

po

rted

to

en

gag

e in

acad

em

ic s

tud

y,

resu

ltin

g in

58

% (

82

/14

1) o

f em

plo

yees

stu

dyi

ng

par

t-tim

e a

s at

th

e e

nd

of

this

re

po

rtin

g p

eri

od

. Th

e b

alan

ce a

tten

ded

o

ne o

r m

ore

tra

inin

g w

ork

sho

ps

Ch

ang

e

man

agem

en

t 2

.2.1

.5P

erc

en

tag

e im

pro

vem

en

t in

em

plo

yee s

atis

factio

n15

%50

%

Sig

nifi

can

t im

pro

vem

en

ts a

re n

ote

d f

rom

th

e p

revi

ou

s fin

ancia

l year

ch

ang

ing

fr

om

0%

to

50

% f

avo

ura

ble

resp

on

ses.

A

limita

tion

is n

ote

d in

th

at 2

9%

(58

/20

3)

em

plo

yees

par

ticip

ated

Em

plo

yee

welln

ess

2.2

.1.6

Perc

en

tag

e o

f em

plo

yees

awar

e o

f E

mp

loye

e

Ass

ista

nce P

rog

ram

me

80

%N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

36

Stra

teg

ic

Ob

ject

ive

2.2

.2:

Imp

rove

d s

take

ho

lder

awar

en

ess

an

d r

eco

gn

ised

as

a le

adin

g S

ecto

r E

du

cat

ion

an

d T

rain

ing

Au

tho

rity

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Man

age c

ust

om

er

car

e c

en

tre

2.2

.2.1

Perc

en

tag

e o

f cu

sto

mer

qu

eri

es

ackn

ow

led

ged

w

ithin

48

ho

urs

100

%9

9.8

%

3,15

6/3

,16

0 c

ust

om

er

qu

eri

es

ackn

ow

led

ged

with

in 4

8 h

ou

rs.

Ackn

ow

led

gem

en

t is

au

tom

ated

fo

r q

ueri

es

sub

mitt

ed

via

th

e c

ust

om

er

car

e

cen

tre

2.2

.2.2

Perc

en

tag

e o

f cu

sto

mer

qu

eri

es

resp

on

ded

to

w

ithin

5 w

ork

ing

day

s in

dic

atin

g r

eso

lutio

n t

ime

100

%8

2%

2,5

71/3

,16

0 c

ust

om

er

qu

eri

es

resp

on

ded

to

with

in 5

wo

rkin

g d

ays

ind

icat

ing

re

solu

tion

tim

e. C

hal

len

ges

were

exp

eri

en

ced

in r

ela

tion

to

resp

on

sive

ness

an

d r

eso

lutio

n o

f st

akeh

old

er

qu

eri

es.

D

ue t

o t

he im

po

rtan

ce o

f th

is s

erv

ice

and

to

avo

id d

up

licat

ion

an

d p

aral

lel

pro

cess

es,

th

is f

un

ctio

n is

bein

g

red

irecte

d in

to t

he O

ffice o

f th

e C

EO

an

d

add

itio

nal

cap

acity

will

be e

stab

lish

ed

Stra

teg

ic

Ob

ject

ive

2.2

.3:

Facili

ties

and

reco

rds

man

aged

an

d a

dm

inis

tere

d t

o b

uild

a s

afe a

nd

secu

re w

ork

en

viro

nm

en

t th

at e

nab

les

pro

du

ctiv

ity

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Secu

rity

an

d

occu

pat

ion

al

heal

th a

nd

saf

ety

2.2

.3.1

Perc

en

tag

e c

om

plia

nce

with

Occu

pat

ion

al H

eal

th

and

Saf

ety

Act

100

%8

2%

Th

is r

esu

lt is

bas

ed

on

an

ext

ern

al

aud

it co

nd

ucte

d d

uri

ng

Q3

acro

ss a

ll P

rovi

ncia

l Offi

ces

and

Head

Offi

ce.

Sub

seq

uen

t in

terv

en

tion

s ar

e n

ot

refle

cte

d in

th

e r

eco

rded

resu

lt a

nd

in

clu

de t

he a

pp

oin

tmen

t an

d t

rain

ing

of

Heal

th a

nd

Saf

ety

rep

rese

nta

tives,

fire

fig

hte

rs a

nd

firs

t ai

ders

Reco

rds

man

agem

en

t sy

stem

s est

ablis

hed

an

d

mai

nta

ined

2.2

.3.2

Do

cu

men

ts a

nd

reco

rds

access

ible

with

in le

ss t

han

24

ho

urs

Ele

ctr

on

ic a

nd

m

anu

al f

or

pas

t 5

ye

ars

Man

ual

A p

relim

inar

y as

sess

men

t h

as b

een

co

nd

ucte

d. H

ow

eve

r, b

usi

ness

pro

cess

d

eve

lop

men

t an

d s

pecifi

cat

ion

is

stil

l p

en

din

g


Stra

teg

ic

Ob

ject

ive

2.3

.1:

Mem

ora

nd

um

s o

f U

nd

ers

tan

din

g, C

on

trac

ts a

nd

Ag

reem

en

ts e

nte

red

into

co

mp

ly w

ith le

gal

pri

ncip

les

and

pro

visi

on

s an

d c

lear

ly

artic

ula

te o

blig

atio

ns,

co

mm

itmen

ts, t

erm

s an

d c

on

diti

on

s an

d r

em

ed

ial a

ctio

ns

to s

tren

gth

en

ad

here

nce

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Leg

al S

erv

ices

sup

po

rts

lear

ner

en

rolm

en

t 2

.3.1

.1

Co

ntr

acts

sig

ned

by

all

par

ties

and

su

pp

ort

ing

evi

den

ce p

rop

erl

y st

ore

d

with

in 6

0 c

alen

dar

day

s10

0%

100

%

729

/72

9 S

erv

ice P

rovi

der

and

ro

utin

e

and

sp

ecia

l pro

ject

Dis

cre

tion

ary

Gra

nts

aw

ard

ed

were

co

ntr

acte

d a

nd

sto

red

w

ithin

th

e t

arg

ete

d t

urn

aro

un

d t

ime a

nd

en

tere

d o

nto

th

e c

om

mitm

en

t sc

hed

ule

Stra

teg

ic

Ob

ject

ive

2.2

.4:

ICT

serv

ices

are in

teg

rate

d, e

fficie

nt

and

inn

ova

tive e

nab

ling

imp

rove

d o

rgan

isat

ion

al e

fficie

ncy

and

perf

orm

ance

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Deve

lop

men

t o

f an

inte

gra

ted

an

d c

om

pat

ible

M

anag

em

en

t In

form

atio

n

Syst

em

2.2

.4.1

Perc

en

tag

e d

eve

lop

men

t o

f M

anag

em

en

t In

form

atio

n S

yste

m10

0%

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

2.2

.4.2

Perc

en

tag

e f

un

ctio

nal

ity

of

Man

agem

en

t In

form

atio

n S

yste

m8

0%

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

2.2

.4.3

Perc

en

tag

e f

un

ctio

nal

ity

of

co

ntr

act

man

agem

en

t m

od

ule

on

Man

agem

en

t In

form

atio

n S

yste

m10

0%

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

38

Pro

gra

mm

e 3

: Man

dat

ory

Gra

nts

Stra

teg

ic

Ob

ject

ive

3.1

.1:

An

nu

al in

cre

ase in

th

e n

um

ber

of

co

mp

anie

s th

at s

ub

mit

pla

ns

for

inve

stm

en

t in

wo

rkp

lace-b

ased

ski

lls d

eve

lop

men

t an

d r

ep

ort

on

ac

hie

vem

en

ts

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Stru

ctu

red

w

ork

sess

ion

s co

nd

ucte

d t

o

pro

vid

e t

ech

nic

al

assi

stan

ce t

o

secto

r em

plo

yers

3.1.

1.1

Nu

mb

er

of

secto

r em

plo

yers

pro

vid

ed

with

te

ch

nic

al a

ssis

tan

ce

3,0

00

4,5

09

Ach

ieve

d t

hro

ug

h s

tru

ctu

red

wo

rk

sess

ion

s an

d e

lectr

on

ic g

uid

elin

es

and

to

ols

dis

sem

inat

ed

ele

ctr

on

ical

ly

with

evi

den

ce o

f ac

cess

. Th

is w

as

imp

lem

en

ted

aft

er

the 2

014

/15

sub

mis

sio

n d

ead

line. T

he im

pac

t w

ill o

nly

b

e r

ep

ort

ed

in t

he f

ort

hco

min

g r

ep

ort

ing

p

eri

od

Incre

ase t

he

nu

mb

er

of

em

plo

yers

th

at

sub

mit

Wo

rkp

lace

Skill

s P

lan

s an

d

An

nu

al T

rain

ing

R

ep

ort

s

3.1.

1.2

Perc

en

tag

e in

cre

ase in

th

e n

um

ber

of

levy

pay

ing

em

plo

yers

th

at s

ub

mit

Wo

rkp

lace S

kills

Pla

ns

and

A

nn

ual

Tra

inin

g R

ep

ort

s d

isag

gre

gat

ed

by

size

50

%

Tota

l: 5,

721

7%

Tota

l: 3,

109

La

rge:

45

1 M

ed

ium

: 5

24

Smal

l: 2

,13

4

Alth

ou

gh

belo

w t

arg

et,

th

is r

esu

lt

rep

rese

nts

an

incre

ase f

rom

th

e p

revi

ou

s re

po

rtin

g p

eri

od

by

20

3 e

mp

loye

rs. T

his

w

as t

he fi

rst

year

th

at t

he e

arly

sta

tuto

ry

dead

line w

as a

pp

licab

le, t

hat

is b

rou

gh

t fo

rwar

d f

rom

30

Ju

ne t

o 3

0 A

pri

l

Stra

teg

ic

Ob

ject

ive

3.1

.2:

Qu

ality

ass

ura

nce o

f A

nn

ual

Tra

inin

g R

ep

ort

s co

nd

ucte

d f

or

mem

ber

co

mp

anie

s en

ablin

g r

esp

on

sib

le a

nd

tim

ely

reim

bu

rsem

en

ts o

f m

and

ato

ry g

ran

ts a

nd

pri

ori

tisat

ion

fo

r d

iscre

tion

ary

gra

nts

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Reim

bu

rsem

en

t o

f al

l em

plo

yers

th

at

hav

e s

ub

mitt

ed

co

mp

lian

t W

ork

pla

ce S

kills

P

lan

s an

d A

nn

ual

Tr

ain

ing

Rep

ort

s

3.1.

2.1

Perc

en

tag

e s

ub

mis

sio

ns

app

rove

d f

or

levy

re

imb

urs

em

en

t an

d

cap

ture

d f

or

pay

men

t

100

%77

%

Reim

bu

rsem

en

ts f

or

1,8

15/2

,372

em

plo

yers

had

been

pro

cess

ed

as

at t

he

en

d o

f th

is r

ep

ort

ing

peri

od

. Man

dat

ory

G

ran

t re

co

ncili

atio

ns

are b

ein

g

co

nd

ucte

d t

o a

dd

ress

all

ou

tsta

nd

ing

cla

ims

Co

mp

lian

ce

veri

ficat

ion

pre

/p

ost

su

bm

issi

on

3.1.

2.2

Perc

en

tag

e o

f le

vy p

ayin

g

em

plo

yer

sub

mis

sio

ns

co

mp

lian

t10

0%

100

%3,

109

/3,1

09

su

bm

issi

on

s w

ere

co

mp

lian

t b

ut

on

ly 7

6%

(2

,372

/3,1

09

) w

ere

elig

ible

fo

r re

imb

urs

em

en

t


Pro

gra

mm

e 4

: Lea

rnin

g In

terv

enti

on

s

Stra

teg

ic

Ob

ject

ive

4.1

.1:

Man

agin

g le

arn

ing

inte

rven

tion

co

ntr

acts

in t

he o

rgan

isat

ion

th

rou

gh

ou

t th

e C

on

trac

t Li

fe C

ycle

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

En

rolle

d, m

on

itor

and

exi

t fu

nd

ed

Le

arn

ers

4.1

.1.1

Tota

l nu

mb

er

of

em

plo

yed

an

d u

nem

plo

yed

lear

ners

en

tere

d15

,10

3P

rio

r ye

ar:

4,5

11C

urr

en

t ye

ar:

7,9

69

Tota

l lear

ners

en

tere

d w

ere

12

,48

0

of

wh

ich

4,5

11 r

ela

ted

to

pri

or

year

en

rolm

en

ts. T

he c

urr

en

t ye

ar r

esu

lt

rep

rese

nts

a 5

3%

ach

ieve

men

t.

Co

mm

itmen

ts c

on

clu

ded

as

at t

he

en

d o

f th

e r

ep

ort

ing

peri

od

exc

eed

th

e

vari

ance

4.1

.1.2

Tota

l nu

mb

er

of

em

plo

yed

an

d u

nem

plo

yed

lear

ners

cert

ificat

ed

12,1

33

Pri

or

year

: 11

Cu

rren

t ye

ar:

4,9

51

Co

mp

letio

n r

ates

were

bas

ed

on

th

e

pri

or

year

en

rolm

en

t ta

rget,

no

t ac

tual

en

rolm

en

ts, h

en

ce t

arg

et

infla

ted

Sup

po

rt

sust

ain

able

ski

lls

deve

lop

men

t4

.1.1

.3P

erc

en

tag

e o

f fu

nd

ed

le

arn

ers

pre

-test

co

un

selle

d f

or

HIV

30

%

(4,5

31/

15,1

03

)N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Incre

ase t

he

nu

mb

er

lear

ners

en

rolle

d in

o

ccu

pat

ion

ally

d

irecte

d

Lear

ners

hip

s

A.

4.1

.1.1

.1N

um

ber

of

em

plo

yed

Le

arn

ers

hip

s en

tere

d0

Cu

rren

t ye

ar:

1,3

35

2

Ch

ang

e in

org

anis

atio

nal

po

licy

pro

vid

ed

fo

r d

iscre

tion

ary

gra

nts

to

be a

war

ded

fo

r E

mp

loye

d L

ear

ners

hip

s

A.

4.1

.1.1

.2N

um

ber

of

un

em

plo

yed

Le

arn

ers

hip

s en

tere

d4

,89

3P

rio

r ye

ar:

30

Cu

rren

t ye

ar:

2,3

28

Som

e o

f th

ese

tar

gets

were

red

irecte

d

bac

k to

Em

plo

yed

Lear

ners

hip

s

A.

4.1

.1.2

.1N

um

ber

of

em

plo

yed

Le

arn

ers

hip

s cert

ificat

ed

2,5

25

Cu

rren

t ye

ar:

89

6C

om

ple

tion

rat

es

were

bas

ed

on

th

e

pri

or

year

en

rolm

en

t ta

rget,

no

t ac

tual

en

rolm

en

ts, h

en

ce t

arg

et

infla

ted

A.

4.1

.1.2

.2N

um

ber

of

un

em

plo

yed

Le

arn

ers

hip

s cert

ificat

ed

3,2

50

Pri

or

year

: 11

Cu

rren

t ye

ar:

1,2

03

Co

mp

letio

n r

ates

were

bas

ed

on

th

e

pri

or

year

en

rolm

en

t ta

rget,

no

t ac

tual

en

rolm

en

ts, h

en

ce t

arg

et

infla

ted

2

Th

is r

esu

lt is

rat

ed

, desp

ite t

he z

ero

tar

get,

du

e t

o a

po

licy

ch

ang

e a

s n

ote

d

40

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Incre

ase t

he

nu

mb

er

lear

ners

en

rolle

d in

o

ccu

pat

ion

ally

d

irecte

d b

urs

arie

s

B.

4.1

.1.1

.3N

um

ber

of

em

plo

yed

B

urs

arie

s en

tere

d6

00

Pri

or

year

: 1,

118

Cu

rren

t ye

ar:

30

6

Tota

l lear

ners

en

tere

d w

ere

1,4

24

of

wh

ich

1,1

18 r

ela

ted

to

pri

or

year

en

rolm

en

ts. T

he c

urr

en

t ye

ar r

esu

lt

rep

rese

nts

a 5

1% a

ch

ieve

men

t

B.

4.1

.1.1

.4N

um

ber

of

un

em

plo

yed

B

urs

arie

s en

tere

d1,

00

0P

rio

r ye

ar:

2,2

47

Cu

rren

t ye

ar:

0

Th

e r

esu

lt w

as f

or

NSF

AS

fun

ded

lear

ners

th

at e

nro

lled

at

the s

tart

of

the 2

014

ac

adem

ic y

ear

. Th

ese

resu

lts

sho

uld

h

ave b

een

rep

ort

ed

in t

he p

revi

ou

s fin

ancia

l year

. Ho

weve

r, p

erf

orm

ance

info

rmat

ion

an

d p

ort

folio

s o

f evi

den

ce

were

ou

tsta

nd

ing

, at

that

tim

e. S

imila

rly,

re

-en

rolm

en

ts f

or

the 2

015

acad

em

ic

year

rem

ain

ou

tsta

nd

ing

, h

en

ce n

o

resu

lt a

vaila

ble

fo

r th

e c

urr

en

t ye

ar.

En

gag

em

en

t b

etw

een

th

e p

artie

s to

m

eet

co

ntr

actu

al o

blig

atio

ns

is o

ng

oin

g

B.

4.1

.1.2

.3N

um

ber

of

em

plo

yed

B

urs

arie

s cert

ificat

ed

80

1C

urr

en

t ye

ar:

44

4C

om

ple

tion

rat

es

were

bas

ed

on

th

e

pri

or

year

en

rolm

en

t ta

rget,

no

t ac

tual

en

rolm

en

ts, h

en

ce t

arg

et

infla

ted

B.

4.1

.1.2

.4N

um

ber

of

un

em

plo

yed

B

urs

arie

s cert

ificat

ed

22

1C

urr

en

t ye

ar:

1,6

90

Resu

lts

were

fo

r N

SFA

S fu

nd

ed

lear

ners

th

at s

uccess

fully

co

mp

lete

d t

he 2

014

ac

adem

ic y

ear

Incre

ase t

he

nu

mb

er

lear

ners

en

rolle

d in

Ad

ult

Ed

ucat

ion

an

d

Trai

nin

g

B.

4.1

.1.1

.5N

um

ber

of

AE

T

Pro

gra

mm

es

en

tere

d4

00

Cu

rren

t ye

ar:

85

Dem

and

was

low

er

than

an

ticip

ated

B.

4.1

.1.2

.5N

um

ber

of

AE

T

Pro

gra

mm

es

cert

ificat

ed

36

0C

urr

en

t ye

ar:

23

6C

om

ple

tion

rat

es

were

bas

ed

on

th

e

pri

or

year

en

rolm

en

t ta

rget,

no

t ac

tual

en

rolm

en

ts, h

en

ce t

arg

et

infla

ted


Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Incre

ase t

he

nu

mb

er

of

lear

ners

en

rolle

d

in o

ccu

pat

ion

ally

d

irecte

d s

kills

p

rog

ram

mes

C.

4.1

.1.1

.6N

um

ber

of

em

plo

yed

Sk

ills

Pro

gra

mm

es

en

tere

d2

,90

0C

urr

en

t ye

ar:

789

Co

mm

itmen

ts c

on

clu

ded

as

at t

he

en

d o

f th

e r

ep

ort

ing

peri

od

exc

eed

th

e

vari

ance

C.

4.1

.1.1

.7N

um

ber

of

un

em

plo

yed

Sk

ills

Pro

gra

mm

es

en

tere

d0

0-

Serv

ices

SETA

Po

licy

was

am

en

ded

to

exc

lud

e f

un

din

g f

or

un

em

plo

yed

sk

ills

pro

gra

mm

es

as t

his

is a

to

p-u

p

cri

tical

ski

lls d

eve

lop

men

t in

terv

en

tion

m

ore

su

ited

to

em

plo

yed

lear

ners

. Th

e

ind

icat

or

rem

ain

s lis

ted

as

it ap

pear

s in

th

e D

HE

T S

LA

C.

4.1

.1.2

.6

Nu

mb

er

of

em

plo

yed

Sk

ills

Pro

gra

mm

es

cert

ificat

ed

2,3

20

Cu

rren

t ye

ar:

90

Co

mp

letio

n r

ates

were

bas

ed

on

th

e

pri

or

year

en

rolm

en

t ta

rget,

no

t ac

tual

en

rolm

en

ts, h

en

ce t

arg

et

infla

ted

C.

4.1

.1.2

.7

Nu

mb

er

of

un

em

plo

yed

Sk

ills

Pro

gra

mm

es

cert

ificat

ed

05

-

Fun

din

g w

as c

om

mitt

ed

fo

r u

nem

plo

yed

Sk

ills

Pro

gra

mm

es

in p

rio

r ye

ars,

wh

ich

re

sulted

in a

sm

all n

um

ber

co

mp

letin

g in

th

is r

ep

ort

ing

peri

od

42

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Incre

ase t

he

nu

mb

er

of

lear

ners

pla

ced

as

inte

rns

wh

eth

er

par

t o

f o

r p

ost

q

ual

ificat

ion

s

D.

4.1

.1.1

.8

Nu

mb

er

of

un

em

plo

yed

In

tern

ship

s en

tere

d

(Wo

rkp

lace E

xperi

en

ce)

90

0P

rio

r ye

ar:

96

Cu

rren

t ye

ar:

247

Co

mm

itmen

ts c

on

clu

ded

as

at t

he

en

d o

f th

e r

ep

ort

ing

peri

od

exc

eed

th

e

vari

ance

D.

4.1

.1.2

.8

Nu

mb

er

of

un

em

plo

yed

In

tern

ship

s co

mp

lete

d

(Wo

rkp

lace E

xperi

en

ce)

1,6

770

Fin

al p

aym

en

t an

d s

up

po

rtin

g

do

cu

men

tatio

n a

re t

he o

nly

evi

den

ce

of

co

mp

letio

n. I

nte

rru

ptio

n in

im

ple

men

tatio

n o

f p

rio

r ye

ar p

roje

cts

d

ela

yed

co

mp

letio

n

D.

4.1

.1.1

.9T

VE

T C

olle

ge In

tern

ship

(p

art

of

qu

alifi

cat

ion

)1,

50

0P

rio

r ye

ar:

1,0

20

Cu

rren

t ye

ar:

96

5

Rem

ed

iatin

g p

rio

r ye

ar p

roje

cts

du

rin

g

the c

urr

en

t ye

ar r

esu

lted

in a

ch

ieve

men

ts

agai

nst

pri

or

year

tar

gets

. Co

mm

itmen

ts

co

nclu

ded

as

at t

he e

nd

of

the r

ep

ort

ing

p

eri

od

exc

eed

th

e v

aria

nce f

or

the

cu

rren

t ye

ar t

arg

et

D.

4.1

.1.1

.10

TV

ET

Gra

du

ate P

lacem

en

t8

40

Cu

rren

t ye

ar:

88

2Ta

rget

exc

eed

ed

D.

4.1

.1.1

.11

Wo

rk in

teg

rate

d le

arn

ing

(U

niv

ers

ities)

36

0C

urr

en

t ye

ar:

38

9Ta

rget

exc

eed

ed


Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Incre

ase t

he

nu

mb

er

of

lear

ners

en

rolle

d

in a

pp

ren

ticesh

ips,

an

d a

ssess

ed

an

d

pre

par

ed

fo

r tr

ade

test

ing

E.

4.1

.1.1

.12

Nu

mb

er

of

app

ren

ticesh

ips

en

tere

d

and

re-e

nte

red

62

7C

urr

en

t ye

ar:

64

3Ta

rget

exc

eed

ed

E.

4.1

.1.2

.9

Nu

mb

er

of

app

ren

ticesh

ips

cert

ificat

ed

250

Cu

rren

t ye

ar:

88

Co

mp

letio

n r

ates

were

bas

ed

on

th

e

pri

or

year

en

rolm

en

t ta

rget,

no

t ac

tual

en

rolm

en

ts, h

en

ce t

arg

et

infla

ted

E.

4.1

.1.1

.13

Nu

mb

er

of

app

ren

tices

asse

ssed

an

d r

em

ed

iate

d2

83

0

Co

mm

itmen

ts c

on

clu

ded

as

at t

he e

nd

o

f th

e r

ep

ort

ing

peri

od

exc

eed

th

e t

arg

et

no

t ac

hie

ved

E.

4.1

.1.2

.10

Nu

mb

er

of

app

ren

tices

cert

ificat

ed

42

90

Co

mp

letio

n r

ates

were

bas

ed

on

th

e

pri

or

year

en

rolm

en

t ta

rget,

no

t ac

tual

en

rolm

en

ts, h

en

ce t

arg

et

infla

ted

. N

otw

ithst

and

ing

th

at, a

pp

roac

hes

to

sup

ply

sh

ou

ld b

e r

eas

sess

ed

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Incre

ase t

he

nu

mb

er

lear

ners

en

rolle

d in

o

ccu

pat

ion

ally

d

irecte

d R

PL

F.

4.1

.1.1

.14

Nu

mb

er

of

RP

L p

rog

ram

mes

en

tere

d8

00

0

Co

mm

itmen

ts c

on

clu

ded

as

at t

he e

nd

o

f th

e r

ep

ort

ing

peri

od

exc

eed

th

e t

arg

et

no

t ac

hie

ved

F.

4.1

.1.2

.11

Nu

mb

er

of

RP

L p

rog

ram

mes

cert

ificat

ed

30

0C

urr

en

t ye

ar:

29

9V

irtu

ally

ach

ieve

d

44

Stra

teg

ic

Ob

ject

ive

4.2

.1:

Nat

ion

al p

artn

ers

hip

s an

d p

rog

ram

me p

lan

s d

eve

lop

ed

an

d r

evi

ew

ed

to

info

rm p

roje

cts

to

ad

dre

ss t

he n

eed

s o

f p

ers

on

s w

ith

dis

abili

ties

in o

rder

to im

pro

ve t

he le

vel o

f ab

sorp

tion

of

pers

on

s w

ith d

isab

ilitie

s in

to t

he s

erv

ices

secto

r

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Facili

tate

en

rolm

en

t o

f le

arn

ers

with

d

isab

ilitie

s ac

ross

al

l lear

nin

g

inte

rven

tion

s

4.2

.1.1

Perc

en

tag

e o

f le

arn

ers

w

ith d

isab

ilitie

s en

rolle

d4

% (6

04

/15,

103

)2

% (14

1/7,

96

9)

Dis

cre

tion

ary

gra

nt

recip

ien

ts w

ere

is

sued

with

exp

licit

co

nd

itio

ns

to e

nsu

re

acco

mm

od

atio

n o

f le

arn

ers

with

d

isab

ilitie

s. E

ntit

ies

that

exp

eri

en

ced

ch

alle

ng

es

in r

ecru

itin

g le

arn

ers

with

d

isab

ilitie

s w

ou

ld h

ave f

orf

eite

d t

his

al

locat

ion

. Fu

nd

ing

may

need

to

be

red

irecte

d in

to a

sp

ecia

l pro

ject

Gra

nt

reas

on

able

ac

co

mm

od

atio

n4

.2.1

.2

Perc

en

tag

e o

f le

arn

ers

w

ith d

isab

ilitie

s g

ran

ted

as

sist

ive d

evi

ces

and

/or

add

itio

nal

su

pp

ort

60

% (3

62

/60

4)

0%

A D

iscre

tion

ary

Gra

nt

Po

licy

ann

exu

re o

n

dis

abili

ty w

as a

pp

rove

d o

n 1

3 F

eb

ruar

y 2

015

. Co

ntr

acte

d e

ntit

ies

will

be is

sued

w

ith c

on

trac

t ad

den

du

ms

and

req

uest

ed

to

su

bm

it in

voic

es

and

su

pp

ort

ing

d

ocu

men

tatio

n f

or

app

licab

le le

arn

ers


Stra

teg

ic

Ob

ject

ive

4.2

.2:

Nat

ion

al p

artn

ers

hip

s an

d p

rog

ram

me p

lan

s d

eve

lop

ed

an

d r

evi

ew

ed

to

info

rm p

roje

cts

fo

r th

e s

up

po

rt a

nd

deve

lop

men

t o

f sm

all

en

terp

rise

s an

d n

on

-pro

fit o

rgan

isat

ion

s

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Pro

vid

e b

usi

ness

d

eve

lop

men

t su

pp

ort

to

sm

all

en

terp

rise

s,

co

op

era

tives

and

no

n-p

rofit

o

rgan

isat

ion

s

4.2

.2.1

Nu

mb

er

of

smal

l levy

p

ayin

g e

mp

loye

rs

sup

po

rted

90

65

Resu

lt in

form

ed

by

en

titie

s th

at w

ere

su

ccess

ful a

nd

aw

ard

ed

Dis

cre

tion

ary

Gra

nt

fun

din

g. A

dd

itio

nal

sm

all l

evy

p

ayin

g e

mp

loye

rs m

ay h

ave b

een

su

pp

ort

ed

th

rou

gh

oth

er

co

re b

usi

ness

ac

tiviti

es.

Co

nsi

der

wid

er

sou

rces

of

evi

den

ce

4.2

.2.2

Nu

mb

er

of

smal

l no

n-

levy

pay

ing

em

plo

yers

su

pp

ort

ed

90

94

Resu

lt in

form

ed

by

dis

cre

tion

ary

gra

nt

fun

din

g a

war

ded

, wo

rksh

op

s an

d

stak

eh

old

er

co

nsu

ltat

ion

s

4.2

.2.3

Nu

mb

er

of

co

op

era

tives

sup

po

rted

90

20

3

Fou

r C

oo

pera

tive a

nd

No

n-P

rofit

O

rgan

isat

ion

tra

inin

g w

ork

sho

ps

were

h

eld

as

follo

ws:

1.

Eas

t Lo

nd

on

on

16

Mar

ch

20

152

. Jo

han

nesb

urg

on

20

Mar

ch

20

153.

D

urb

an o

n 2

4 M

arch

20

154

. P

olo

kwan

e o

n 2

7 M

arch

20

15R

esu

lts

sup

ple

men

ted

with

dis

cre

tion

ary

gra

nt

fun

din

g a

war

ded

Facili

tate

en

rolm

en

t o

f le

arn

ers

into

p

ub

lic e

du

cat

ion

an

d t

rain

ing

in

stitu

tion

s ac

ross

al

l lear

nin

g

inte

rven

tion

s

4.2

.2.4

Nu

mb

er

of

no

n-p

rofit

o

rgan

isat

ion

s su

pp

ort

ed

120

33

6

Fou

r C

oo

pera

tive a

nd

No

n-P

rofit

O

rgan

isat

ion

tra

inin

g w

ork

sho

ps

were

h

eld

as

follo

ws:

1.

Eas

t Lo

nd

on

on

16

Mar

ch

20

152

. Jo

han

nesb

urg

on

20

Mar

ch

20

153.

D

urb

an o

n 2

4 M

arch

20

154

. P

olo

kwan

e o

n 2

7 M

arch

20

15R

esu

lts

sup

ple

men

ted

with

dis

cre

tion

ary

gra

nt

fun

din

g a

war

ded

46

Stra

teg

ic

Ob

ject

ive

4.2

.3:

Form

alis

atio

n o

f P

artn

ers

hip

s, a

nd

deve

lop

men

t o

f st

rate

gic

pro

gra

mm

es

for

pro

mo

ting

resp

on

sive

TV

ET

an

d H

ET

Inst

itutio

n

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Deve

lop

p

artn

ers

hip

s

4.2

.3.1

Nu

mb

er

of

TV

ET

co

lleg

e

par

tners

hip

s2

02

0

11/2

0 T

VE

T c

olle

ge p

artn

ers

hip

s co

ntin

ued

fro

m p

rio

r ye

ars

and

9/2

0

were

est

ablis

hed

du

rin

g t

his

rep

ort

ing

p

eri

od

4.2

.3.2

Nu

mb

er

of

HE

T in

stitu

tion

p

artn

ers

hip

s8

12

8/1

2 H

ET

inst

itutio

ns

receiv

ed

fu

nd

ing

th

rou

gh

NSF

AS,

2/1

2 w

ere

aw

ard

ed

d

iscre

tion

ary

gra

nt

fun

din

g d

irectly

and

2

/12

par

tnere

d in

rese

arch

Neg

otia

te

co

ntr

acts

fo

r le

arn

er

allo

cat

ion

s b

etw

een

TV

ETs

, p

ub

lic s

erv

ice a

nd

p

riva

te e

mp

loye

rs

4.2

.3.3

Perc

en

tag

e o

f le

arn

ers

en

rolle

d a

nd

pla

ced

th

rou

gh

TV

ETs

an

d H

ETs

40

%

(6,0

41/

15,1

03

)6

7% (5,

32

3/7

,96

9)

Targ

et

sig

nifi

can

tly

exc

eed

ed

du

e t

o h

igh

p

rop

ort

ion

of

specia

l pro

jects

en

rolm

en

t

Stre

ng

then

pu

blic

se

cto

r se

rvic

e

deliv

ery

4

.2.3

.4

Perc

en

tag

e o

f le

arn

ers

en

rolle

d a

nd

pla

ced

with

in

pu

blic

serv

ices

and

sta

te

ow

ned

en

terp

rise

s

10%

(1

,510

/15,

103

)2

7%

(2,1

22

/7,9

69

)Ta

rget

exc

eed

ed

du

e t

o h

igh

pro

po

rtio

n

of

specia

l pro

jects

en

rolm

en

t


Stra

teg

ic

Ob

ject

ive

4.2

.4:

Sup

po

rtin

g a

nd

fac

ilita

ting

an

incre

ased

fo

cu

s o

n s

kills

fo

r ru

ral d

eve

lop

men

t to

su

pp

ort

go

vern

men

ts p

rio

ritis

atio

n o

f ru

ral

deve

lop

men

t

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Facili

tate

en

rolm

en

t o

f le

arn

ers

in r

ura

l ar

eas

alig

ned

to

ke

y eco

no

mic

g

row

th a

reas

ac

ross

all

lear

nin

g

inte

rven

tion

s

4.2

.4.1

Perc

en

tag

e o

f le

arn

ers

in

rura

l are

as e

nro

lled

20

% (3,

02

1/15

,10

3)

26

% (2

,051/

7,9

69

)Ta

rget

exc

eed

ed

du

e t

o h

igh

pro

po

rtio

n

of

specia

l pro

ject

en

rolm

en

t

Gra

nt

rura

l to

p-u

p

allo

wan

ce

4.2

.4.2

Perc

en

tag

e o

f le

arn

ers

in

ru

ral a

reas

gra

nte

d

add

itio

nal

fin

ancia

l aid

40

% (1,

20

8/3

,02

1)0

A D

iscre

tion

ary

Gra

nt

Po

licy

ann

exu

re

was

ap

pro

ved

on

13

Feb

ruar

y 2

015

. C

on

trac

ted

en

titie

s w

ill b

e is

sued

with

co

ntr

act

add

en

du

ms

and

req

uest

ed

to

su

bm

it in

voic

es

and

su

pp

ort

ing

d

ocu

men

tatio

n f

or

app

licab

le le

arn

ers

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Est

ablis

h a

nd

m

ain

tain

ru

ral

skill

s d

eve

lop

men

t cen

tres

4.2

.4.3

Nu

mb

er

of

skill

s d

eve

lop

men

t cen

tres

est

ablis

hed

an

d

op

era

tion

al

24

Co

llab

ora

tive p

artn

ers

hip

s w

ith

resp

ectiv

e m

un

icip

aliti

es,

go

vern

men

t d

ep

artm

en

ts a

nd

/or

pu

blic

en

titie

s h

ave

been

co

nclu

ded

fo

r w

hic

h o

pera

tion

al

team

s an

d im

ple

men

tatio

n p

lan

s ar

e

est

ablis

hed

, nam

ely

:1.

A

rtis

an D

eve

lop

men

t A

cad

em

y at

th

e

Mo

theo

TV

ET

Co

lleg

e

2.

No

rth

West

in c

olla

bo

ratio

n w

ith t

he

No

rth

West

Pro

vin

cia

l Go

vern

men

t,

LGSE

TA a

nd

SA

SSE

TA3.

M

err

ival

e (

near

Ho

wic

k) in

co

llab

ora

tion

with

Um

gen

i M

un

icip

ality

4.

Kw

aXim

ba

(near

Cat

o R

idg

e)

in

co

llab

ora

tion

with

Ela

ng

en

i Co

lleg

e

and

eT

hekw

ini M

un

icip

ality

Co

mm

itmen

ts h

ave f

urt

her

been

co

nclu

ded

fo

r an

oth

er

4 s

kills

d

eve

lop

men

t cen

tres

48

Stra

teg

ic

Ob

ject

ive

4.2

.5:

Sup

po

rt t

he n

atio

nal

ag

en

da

of

cre

atin

g n

ew

an

d u

pg

rad

ing

exi

stin

g in

fras

tru

ctu

re t

hro

ug

h t

he d

eliv

ery

of

rele

van

t sk

ills

pro

gra

mm

es.

T

he S

IPs

co

ver

socia

l an

d e

co

no

mic

infr

astr

uctu

re a

cro

ss a

ll n

ine p

rovi

nces

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Facili

tate

en

rolm

en

t o

f le

arn

ers

in

sup

po

rt o

f SI

PS

4.2

.5.1

Perc

en

tag

e o

f le

arn

ers

al

ign

ed

to

SIP

s en

rolle

d10

%

(1,5

10/1

5,10

3)

16%

(1

,28

0/7

,96

9)

Targ

et

exc

eed

ed

fo

r cu

rren

t ye

ar

en

rolm

en

ts

Stra

teg

ic

Ob

ject

ive

4.2

.6:

Nat

ion

al p

artn

ers

hip

s an

d p

rio

rity

pro

gra

mm

e p

lan

s d

eve

lop

ed

an

d r

evi

ew

ed

to

info

rm p

roje

cts

to

imp

rove

th

e e

mp

loya

bili

ty o

f yo

uth

an

d t

ho

se n

ot

in e

mp

loym

en

t an

d n

ot

in e

du

cat

ion

an

d t

rain

ing

(N

EE

T)

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Facili

tate

en

rolm

en

t o

f yo

uth

lear

ners

ac

ross

all

lear

nin

g

inte

rven

tion

s

4.2

.6.1

Perc

en

tag

e o

f yo

uth

le

arn

ers

en

rolle

d4

0%

(6

,04

1/15

,10

3)

81%

(6,4

22

/7,9

69

)Ta

rget

sig

nifi

can

tly

exc

eed

ed

du

e t

o h

igh

p

rop

ort

ion

of

specia

l pro

jects

en

rolm

en

ts

Deve

lop

po

rtal

fo

r yo

uth

an

d

NE

ET

to

reg

iste

r le

arn

ing

inte

rest

4.2

.6.2

Nu

mb

er

of

you

th a

nd

N

EE

T r

eg

iste

red

on

po

rtal

2,0

00

2,6

78

Pro

spectiv

e le

arn

ers

inte

rest

ed

in

Serv

ices

SETA

qu

alifi

cat

ion

s w

ere

re

gis

tere

d o

n t

he p

ort

al t

hro

ug

h t

hre

e

car

eer

deve

lop

men

t exp

osi

tion

s th

at

too

k p

lace a

s fo

llow

s:1.

Fe

takg

om

o Y

ou

th E

xpo

sitio

n:

11 t

o 1

3

Feb

ruar

y 2

015

2.

Klip

tow

n C

areer

Gu

idan

ce

Exp

osi

tion

: 2

1 M

arch

20

153.

K

oks

tad

Yo

uth

Exp

osi

tion

: 24

to

25

Mar

ch

20

15


Stra

teg

ic

Ob

ject

ive

4.2

.7:

Reco

gn

itio

n o

f P

rio

r Le

arn

ing

Cen

tres

est

ablis

hed

in h

igh

-den

sity

ind

ust

rial

are

as w

here

th

ere

is a

co

ncen

trat

ion

of

levy

pay

ing

em

plo

yers

to

ass

ess

, accre

dit

and

su

pp

lem

en

t le

arn

ing

fo

r th

e a

ttai

nm

en

t o

f q

ual

ificat

ion

s an

d s

tren

gth

en

car

eer

deve

lop

men

t

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

r2

014

/15

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Est

ablis

h

and

mai

nta

in

reco

gn

itio

n o

f p

rio

r le

arn

ing

cen

tres

to

facili

tate

ac

hie

vem

en

t o

f R

PL

targ

ets

4.2

.7.1

Nu

mb

er

of

RP

L cen

tres

fully

op

era

tion

al1

0

A t

en

der

was

issu

ed

on

25 J

anu

ary

20

15.

Th

e s

up

ply

ch

ain

pro

cess

had

no

t b

een

co

nclu

ded

as

at t

he e

nd

of

the r

ep

ort

ing

p

eri

od

Pro

gra

mm

e 5

: Sta

keh

old

er R

elat

ion

s

Stra

teg

ic

Ob

ject

ive

5.1

.1:

Op

po

rtu

niti

es

for

nat

ion

al a

nd

inte

rnat

ion

al p

artn

ers

hip

s id

en

tified

an

d f

orm

alis

ed

th

rou

gh

activ

e s

take

ho

lder

rela

tion

ship

man

agem

en

t

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Mai

nta

in a

st

akeh

old

er

rela

tion

s m

anag

em

en

t d

atab

ase

5.1.

1.1

Perc

en

tag

e s

ecto

r em

plo

yers

co

nta

ct

reco

rds

up

dat

ed

an

nu

ally

90

%0

%

Pro

gre

ss h

as b

een

mad

e t

hro

ug

h

pro

vin

cia

l offi

ces

bu

t d

ata

is n

ot

veri

fiab

le. A

new

str

ateg

ic a

pp

roac

h

to m

ain

tain

ing

accu

rate

an

d r

elia

ble

st

akeh

old

er

info

rmat

ion

is r

eq

uired

Co

llab

ora

te

with

org

anis

ed

b

usi

ness

an

d

pro

fess

ion

al

bo

die

s

5.1.

1.2

Nu

mb

er

of

activ

e

par

tners

hip

s w

ith

org

anis

ed

co

nst

ituen

cie

s an

d p

rofe

ssio

nal

bo

die

s

8N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Par

tner

with

in

tern

atio

nal

en

titie

s to

exc

han

ge

kno

wle

dg

e a

nd

st

and

ard

s an

d

pro

mo

te g

lob

al

reco

gn

itio

n o

f q

ual

ificat

ion

s

5.1.

1.3

Nu

mb

er

of

activ

e

inte

rnat

ion

al p

artn

ers

hip

s6

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

50

Stra

teg

ic

Ob

ject

ive

5.1

.2:

Dem

and

an

d s

up

ply

mo

bili

sed

th

rou

gh

sta

keh

old

er

and

exp

ert

co

nsu

ltat

ion

aim

ed

at

stre

ng

then

ing

eq

uity

in s

kills

deve

lop

men

t an

d

alig

nm

en

t to

scar

ce a

nd

cri

tical

ski

lls

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Pro

file d

em

and

an

d p

rovi

sio

n b

y p

rovi

nce

5.1.

2.1

Nu

mb

er

of

pro

vin

cia

l sk

ills

deve

lop

men

t p

lan

s d

eve

lop

ed

an

d r

evi

ew

ed

98

8/9

Pro

vin

ces

deve

lop

ed

Pro

vin

cia

l D

eve

lop

men

t P

lan

s. T

he G

aute

ng

P

rovi

nce f

aile

d t

o a

ch

ieve

th

is t

arg

et

du

e

to t

he P

rovi

ncia

l Man

ager

vacan

cy

Co

ord

inat

e in

pu

t fr

om

exp

ert

p

ractit

ion

ers

to

su

pp

ort

need

s id

en

tificat

ion

an

d

qu

alifi

cat

ion

s d

eve

lop

men

t5.

1.2

.2

Nu

mb

er

of

activ

e

Co

mm

un

ities

of

Exp

ert

P

ractit

ion

ers

1010

Co

mm

un

ities

of

Exp

ert

Pra

ctit

ion

ers

ar

e e

stab

lish

ed

to

su

pp

ort

qu

alifi

cat

ion

s d

eve

lop

men

t. T

he r

esu

lt r

efle

cts

th

e

nu

mb

er

of

co

mm

ittees

activ

e a

t an

y p

oin

t d

uri

ng

th

e r

ep

ort

ing

peri

od

Est

ablis

h

and

mai

nta

in

pro

vin

cia

l co

nsu

ltat

ive r

ole

-p

laye

r st

ructu

res

5.1.

2.3

Nu

mb

er

of

activ

e

pro

vin

cia

l ro

le-p

laye

r fo

rum

s9

7

7/9

Pro

vin

cia

l Fo

rum

s w

ere

est

ablis

hed

an

d m

et

befo

re t

he e

nd

of

the r

ep

ort

ing

p

eri

od

. Gau

ten

g a

nd

No

rth

West

P

rovi

ncia

l Fo

rum

s w

ill b

e e

stab

lish

ed

in

the f

ort

hco

min

g r

ep

ort

ing

peri

od

Stra

teg

ic

Ob

ject

ive

5.1

.3:

Cap

acity

Deve

lop

men

t an

d T

ech

nic

al S

up

po

rt p

rovi

ded

to

mem

ber

co

mp

anie

s to

mo

bili

se s

take

ho

lders

an

d f

acili

tate

ski

lls

deve

lop

men

t fo

r im

pro

ved

se

rvic

e d

eliv

ery

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Facili

tate

st

akeh

old

er

co

nsu

ltat

ion

an

d

en

gag

em

en

t 5.

1.3.

1N

um

ber

of

role

pla

yer

dia

log

ues

co

nd

ucte

d3

04

8

Targ

et

exc

eed

ed

an

d a

ch

ieve

d t

hro

ug

h

stak

eh

old

er

en

gag

em

en

ts, w

ork

sho

ps

and

sem

inar

s ac

ross

Ch

amb

ers

Pro

vid

e t

rain

ing

to

su

pp

ort

p

artic

ipat

ion

in

co

re p

rog

ram

mes

5.1.

3.2

Nu

mb

er

of

role

pla

yer

trai

nin

g w

ork

sho

ps

co

nd

ucte

d4

076

Targ

et

exc

eed

ed

an

d a

ch

ieve

d t

hro

ug

h

cap

acity

bu

ildin

g w

ork

sho

ps

co

nd

ucte

d

on

Dis

cre

tion

ary

Gra

nts

, Man

dat

ory

G

ran

ts, C

ore

Bu

sin

ess

an

d H

aird

ress

ing

Tech

nic

al

assi

stan

ce a

nd

su

pp

ort

pro

vid

ed

at

co

mp

any

leve

l5.

1.3.

3

Nu

mb

er

of

secto

r em

plo

yers

pro

vid

ed

w

ith in

div

idu

al t

ech

nic

al

assi

stan

ce

50

06

79

Targ

et

exc

eed

ed

. No

twith

stan

din

g

that

, mo

re o

utr

eac

h is

pla

nn

ed

fo

r th

e

fort

hco

min

g r

ep

ort

ing

peri

od


Stra

teg

ic

Ob

ject

ive

5.2

.1:

Lear

ners

an

d e

mp

loye

rs s

up

po

rted

to

fu

lfil c

on

trac

tual

ob

ligat

ion

s an

d s

atis

facto

rily

co

mp

lete

lear

nin

g o

utc

om

es

for

man

dat

ory

an

d

dis

cre

tion

ary

gra

nt

fun

ded

inte

rven

tion

s

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

lt

Rat

ing

Res

ult

an

d V

aria

nce

Exp

lan

atio

n

Co

nd

uct

pre

-co

mp

lian

ce

on

em

plo

yers

th

at r

eg

iste

r to

su

bm

it W

SPs

and

A

TR

s an

d s

ub

mit

do

cu

men

tatio

n5.

2.1

.1

Nu

mb

er

of

pre

-co

mp

lian

ce c

hecks

co

nd

ucte

d o

n W

SPs

and

A

TR

s (r

esu

lts

dis

agg

reg

ated

b

y p

rovi

nce a

nd

su

bse

cto

r)7,

06

3N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Co

mp

letio

n a

nd

su

bm

issi

on

of

agre

em

en

ts a

nd

le

arn

er

en

rolm

en

t fo

rms

for

fun

ded

in

terv

en

tion

s5.

2.1

.2

Nu

mb

er

of

lear

ners

en

rolle

d a

cro

ss a

ll le

arn

ing

in

terv

en

tion

s (r

esu

lts

to b

e

dis

agg

reg

ated

by

pro

vin

ce

and

su

bse

cto

r)11

,63

3N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Pro

gra

mm

e 6

: Qu

alifi

cati

on

s an

d Q

ual

ity

Man

agem

ent

Stra

teg

ic

Ob

ject

ive

6.1

.1:

Qu

alifi

cat

ion

s an

d le

arn

ing

pro

gra

mm

es

desi

gn

ed

, deve

lop

ed

, reg

iste

red

an

d p

ilote

d in

acco

rdan

ce w

ith n

ew

sta

nd

ard

s an

d p

ractic

es

and

alig

ned

to

ind

ust

ry n

eed

s an

d id

en

tified

scar

ce a

nd

cri

tical

ski

lls

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Man

age r

eg

iste

red

o

ccu

pat

ion

al

qu

alifi

cat

ion

s an

d

lear

ners

hip

s

6.1

.1.1

Perc

en

tag

e o

f ac

tive

serv

ices

secto

r o

ccu

pat

ion

al q

ual

ificat

ion

s6

5%

51%

54

/10

6 q

ual

ificat

ion

s w

ere

activ

e a

s at

th

e e

nd

of

this

rep

ort

ing

peri

od

6.1

.1.2

Perc

en

tag

e o

f ac

tive

serv

ices

secto

r le

arn

ers

hip

s75

%4

3%

40

/93

Lear

ners

hip

s w

ere

activ

e a

s at

th

e

en

d o

f th

is r

ep

ort

ing

peri

od

6.1

.1.3

Nu

mb

er

of

new

O

ccu

pat

ion

al Q

ual

ificat

ion

s d

eve

lop

ed

an

d r

eg

iste

red

39

Th

e r

esu

lt r

efle

cts

th

e n

um

ber

of

new

q

ual

ificat

ion

s d

eve

lop

ed

an

d r

eg

iste

red

w

ith t

he Q

CT

O d

uri

ng

th

e r

ep

ort

ing

p

eri

od

, an

d f

or

wh

ich

ap

pro

val i

s p

en

din

g

52

Stra

teg

ic

Ob

ject

ive

6.1

.2:

Skill

s D

eve

lop

men

t P

rovi

ders

accre

dite

d a

nd

mo

nito

red

ag

ain

st S

erv

ices

SETA

Occu

pat

ion

al Q

ual

ificat

ion

s an

d L

ear

nin

g P

rog

ram

me

Cri

teri

a (L

ear

ners

hip

s, S

kills

Pro

gra

mm

es

and

RP

L)

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Pro

cess

tra

inin

g

pro

vid

er,

co

nst

ituen

t as

sess

or

and

co

nst

ituen

t m

od

era

tor

app

licat

ion

s

6.1

.2.1

Perc

en

tag

e o

f sk

ills

deve

lop

men

t p

rovi

ders

ap

plic

atio

ns

pro

cess

ed

w

ithin

60

day

s

100

%9

7%

1,0

35/1

,06

3 a

pp

licat

ion

s w

ere

pro

cess

ed

w

ithin

60

day

s. T

he v

aria

nce o

f 3

%

was

pro

cess

ed

ou

tsid

e o

f th

e 6

0 d

ay

turn

aro

un

d t

ime d

ue t

o a

sh

ort

age o

f q

ual

ity a

ssu

rers

6.1

.2.2

Perc

en

tag

e r

eg

iste

red

co

nst

ituen

t as

sess

or

app

licat

ion

s p

rocess

ed

w

ithin

60

day

s

100

%8

2%

1,3

19/1

,60

3 a

pp

licat

ion

s w

ere

pro

cess

ed

w

ithin

60

day

s. T

he v

aria

nce o

f 16

% w

as

pro

cess

ed

ou

tsid

e t

he 6

0 d

ay t

urn

aro

un

d

time d

ue t

o a

n in

flux

of

app

licat

ion

s an

d

the r

e-r

eg

istr

atio

n p

rocess

6.1

.2.3

Perc

en

tag

e r

eg

iste

red

co

nst

ituen

t m

od

era

tor

app

licat

ion

s p

rocess

ed

w

ithin

60

day

s

100

%8

2%

62

5/7

64

ap

plic

atio

ns

were

pro

cess

ed

w

ithin

60

day

s. T

he v

aria

nce o

f 16

% w

as

pro

cess

ed

ou

tsid

e t

he 6

0 d

ay t

urn

aro

un

d

time d

ue t

o in

flux

of

app

licat

ion

s an

d t

he

re-r

eg

istr

atio

n p

rocess

Mo

nito

r th

e

qu

ality

of

trai

nin

g

pro

visi

on

6.1

.2.4

Perc

en

tag

e o

f ac

cre

dite

d

skill

s d

eve

lop

men

t p

rovi

ders

mo

nito

red

40

%

80

%6

6/8

3 n

ew

ly a

ccre

dite

d s

kills

d

eve

lop

men

t p

rovi

ders

mo

nito

red


Stra

teg

ic

Ob

ject

ive

6.1

.3:

Lear

ner

ach

ieve

men

ts a

re q

ual

ity a

ssu

red

acco

rdin

g t

o t

he Q

ual

ity C

ou

ncil

for

Trad

es

and

Occu

pat

ion

s as

sess

men

t p

olic

y an

d

cert

ificat

ion

pro

cess

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Issu

e c

ert

ificat

es

and

Sta

tem

en

ts o

f R

esu

lts

6.1

.3.1

Perc

en

tag

e o

f cert

ificat

es

issu

ed

fo

r Le

arn

ers

hip

s to

co

mp

ete

nt

lear

ners

with

in

90

day

s o

f su

bm

ittin

g

lear

ner

ach

ieve

men

ts

100

%9

6%

1,3

76/1

,43

8 L

ear

ners

hip

cert

ificat

es

were

issu

ed

with

in 9

0 d

ays.

On

ly o

ne

cert

ificat

e w

as is

sued

ou

tsid

e t

he

turn

aro

un

d t

ime

6.1

.3.2

Perc

en

tag

e o

f cert

ificat

es

issu

ed

fo

r o

ccu

pat

ion

al

qu

alifi

cat

ion

s to

co

mp

ete

nt

lear

ners

with

in 9

0 d

ays

of

sub

mitt

ing

lear

ner

ach

ieve

men

ts

100

%9

0%

3,0

08

/3,3

39

cert

ificat

es

were

issu

ed

w

ithin

90

day

s. T

he v

aria

nce o

f 10

% w

as

issu

ed

ou

tsid

e t

he t

urn

aro

un

d t

ime d

ue

to a

sh

ort

age o

f q

ual

ity a

ssu

rers

6.1

.3.3

Perc

en

tag

e o

f st

atem

en

ts

of

resu

lts

issu

ed

fo

r sk

ills

pro

gra

mm

es

to e

ligib

le

lear

ners

with

in 9

0 d

ays

o

f su

bm

ittin

g le

arn

er

ach

ieve

men

ts

100

%75

%

3,6

87/

4,9

48

Sta

tem

en

ts o

f R

esu

lts

were

is

sued

with

in 9

0 d

ays.

Th

e v

aria

nce o

f 6

3%

was

issu

ed

ou

tsid

e t

he t

urn

aro

un

d

time d

ue t

o a

sh

ort

age o

f q

ual

ity a

ssu

rers

54

Stra

teg

ic

Ob

ject

ive

6.1

.4:

Pu

blic

an

d p

riva

te le

arn

ing

inst

itutio

ns

and

tra

inin

g p

rovi

ders

mo

bili

sed

an

d c

apac

itate

d t

o o

ffer

qu

ality

ass

ure

d O

ccu

pat

ion

al

qu

alifi

cat

ion

s an

d le

arn

ing

pro

gra

mm

es

exp

and

ing

access

to

tar

gete

d b

en

efic

iari

es

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Mo

bili

se a

nd

cap

acita

te p

ub

lic

and

pri

vate

ski

lls

deve

lop

men

t p

rovi

ders

6.1

.4.1

Nu

mb

er

of

TV

ETs

ap

pro

ved

an

d o

fferi

ng

serv

ices

secto

r q

ual

ificat

ion

s 4

017

17 T

VE

T c

olle

ge a

re o

fferi

ng

serv

ices

secto

r q

ual

ificat

ion

s. 6

TV

ET

co

lleg

e

app

licat

ion

s fo

r p

rog

ram

me a

pp

rova

l w

ere

in p

rog

ress

as

at t

he e

nd

of

the

rep

ort

ing

peri

od

6.1

.4.2

Nu

mb

er

of

inst

ructio

nal

co

ach

es

trai

ned

50

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

6.1

.4.3

Nu

mb

er

of

skill

s d

eve

lop

men

t p

rovi

ders

su

pp

ort

ed

/en

gag

ed

/ tr

ain

ed

60

0N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

6.1

.4.4

Nu

mb

er

of

mo

dera

tors

tr

ain

ed

50

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort


Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

6.1

.4.5

Nu

mb

er

of

asse

sso

rs

trai

ned

100

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Imp

lem

en

t a

Car

eer

Deve

lop

men

t P

rog

ram

me

6.1

.4.6

Nu

mb

er

of

car

eer

deve

lop

men

t m

ateri

al

deve

lop

ed

an

d p

ub

lish

ed

31

A f

urt

her

6 t

ypes

of

car

eer

deve

lop

men

t m

ateri

al h

ad b

een

deve

lop

ed

as

at t

he

en

d o

f th

e r

ep

ort

ing

peri

od

bu

t ap

pro

val

for

pu

blic

atio

n w

as p

en

din

g

6

.1.4

.7

Nu

mb

er

of

car

eer

gu

idan

ce

dis

trib

utio

n o

utlets

cap

acita

ted

10N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Mo

bili

se a

nd

est

ablis

h

asse

ssm

en

t q

ual

ity p

artn

ers

6.1

.4.8

Nu

mb

er

of

asse

ssm

en

t q

ual

ity p

artn

ers

su

pp

ort

ed

/en

gag

ed

an

d t

rain

ed

2N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

56

Pro

gra

mm

e 7:

Res

earc

h, S

trat

egic

Pla

nn

ing

an

d M

&E

Stra

teg

ic

Ob

ject

ive

7.1.

1:Se

rvic

es

secto

r n

eed

s re

sear

ch

ed

, do

cu

men

ted

an

d c

om

mu

nic

ated

to

en

able

eff

ectiv

e p

lan

nin

g a

cro

ss a

ll eco

no

mic

su

b-s

ecto

rs

ann

ual

ly

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Est

ablis

h

cre

dib

le r

ese

arch

m

eth

od

olo

gy

and

re

po

rt in

th

e f

orm

o

f a

Secto

r Sk

ills

Pla

n

7.1.

1.1

Perc

en

tag

e o

f re

pre

sen

tativ

e

sam

ple

5%

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

7.1.

1.2

Resp

on

den

t p

artic

ipat

ion

ra

te70

%N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

7.1.

1.3

Dra

ft S

ecto

r Sk

ills

Pla

n

sub

mitt

ed

fo

r ap

pro

val

with

in p

resc

rib

ed

tim

efr

ames

20

15/1

6 a

s p

resc

rib

ed

20

15/1

6 a

s p

resc

rib

ed

Firs

t d

raft

ap

pro

ved

on

29

May

20

14.

Seco

nd

dra

ft a

pp

rove

d o

n 3

1 Ju

ly 2

014

. A

join

t A

cco

un

ting

Au

tho

rity

, Ch

amb

er

Co

mm

ittees

and

Man

agem

en

t w

ork

sho

p

was

held

on

19

Au

gu

st 2

014

to

en

gag

e

on

su

bst

antiv

e c

on

ten

t. F

inal

Secto

r Sk

ills

Pla

n a

pp

rove

d o

n 3

0 S

ep

tem

ber

20

14

Co

nd

uct,

su

perv

ise,

do

cu

men

t an

d

dis

sem

inat

e

inn

ova

tion

re

sear

ch

th

at

info

rms

dem

and

7.1.

1.4

Nu

mb

er

of

secto

r an

d

inn

ova

tion

rese

arch

rep

ort

s is

sued

3N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort


Stra

teg

ic

Ob

ject

ive

7.1.

2:

Stra

teg

ic, A

nn

ual

an

d O

pera

tion

al P

erf

orm

ance P

lan

s al

ign

ed

an

d u

pd

ated

an

nu

ally

in c

om

plia

nce w

ith r

eg

ula

tory

fra

mew

ork

s

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Revi

ew

an

d

up

dat

e s

trat

eg

ic

and

an

nu

al

perf

orm

ance

pla

ns

7.1.

2.1

Nu

mb

er

of

stra

teg

ic

pla

nn

ing

co

nsu

ltat

ion

s2

03

5

Mo

re t

han

an

ticip

ated

co

nsu

ltat

ion

s w

ere

co

nd

ucte

d t

o r

ein

forc

e in

pu

t an

d o

wn

ers

hip

an

d e

nsu

re a

pp

rop

riat

e

stra

teg

ic o

vers

igh

t an

d d

irectio

n

7.1.

2.2

Dra

ft S

trat

eg

ic a

nd

A

nn

ual

Perf

orm

ance

Pla

ns

sub

mitt

ed

fo

r ap

pro

val w

ithin

pre

scri

bed

tim

efr

ames

20

15/1

6 a

s p

resc

rib

ed

20

15/1

6 a

s p

resc

rib

ed

Acco

un

ting

Au

tho

rity

wo

rksh

op

held

o

n 2

4 J

uly

an

d fi

rst

dra

ft s

ub

mis

sio

n

app

rove

d b

y th

e E

xecu

tive C

om

mitt

ee o

f th

e A

cco

un

ting

Au

tho

rity

on

27

Au

gu

st

20

14. A

cco

un

ting

Au

tho

rity

wo

rksh

op

h

eld

on

10

No

vem

ber

20

14 a

nd

join

t G

ove

rnan

ce, R

isk

and

Str

ateg

y an

d

Fin

ance C

om

mitt

ee m

eetin

g a

pp

rove

d

the d

raft

s o

n 1

3 N

ove

mb

er

20

14. F

inal

su

bm

issi

on

ap

pro

ved

by

the A

cco

un

ting

A

uth

ori

ty o

n 1

4 J

anu

ary

20

15

58

Stra

teg

ic

Ob

ject

ive

7.1.

3:

Mo

nito

rin

g a

nd

Rep

ort

ing

Sys

tem

s est

ablis

hed

an

d m

ain

tain

ed

to

en

sure

accu

rate

rep

ort

ing

of

no

n-fi

nan

cia

l resu

lts

qu

arte

rly

and

an

nu

ally

en

ablin

g p

erf

orm

ance im

pro

vem

en

t

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Accu

rate

resu

lts

rep

ort

ing

7.1.

3.1

Dra

ft P

erf

orm

ance

Info

rmat

ion

Rep

ort

s su

bm

itted

fo

r ap

pro

val

in a

dva

nce o

f p

resc

rib

ed

tim

efr

ames

3 w

ork

ing

day

s af

ter

eac

h

qu

arte

r

3 w

ork

ing

day

s af

ter

eac

h q

uar

ter

Sub

mitt

ed

fo

r ap

pro

val o

n t

he f

ollo

win

g

dat

es:

Q4

in Q

1: 3

Ap

ril 2

014

Q

1 in

Q2

: 3

Ju

ly 2

014

Q2

in Q

3:

3 O

cto

ber

20

14Q

3 in

Q4

: 7

Jan

uar

y 2

015

7.1.

3.2

Dra

ft A

nn

ual

Perf

orm

ance

Rep

ort

su

bm

itted

fo

r au

diti

ng

with

in p

resc

rib

ed

tim

efr

ames

En

d o

f M

ayE

nd

of

May

Sub

mitt

ed

as

pre

scri

bed

7.1.

3.3

Max

imu

m n

um

ber

of

ch

ang

e r

eq

uest

s su

bm

itted

to

th

e D

ep

artm

en

t o

f H

igh

er

Ed

ucat

ion

an

d

Trai

nin

g

41

On

e a

dju

stm

en

t w

as s

ub

mitt

ed

po

st Q

2

rep

ort

ing

. Pri

or

qu

arte

r ad

just

men

ts w

ere

re

flecte

d in

th

e Q

4 r

ep

ort

7.1.

3.4

Perc

en

tag

e r

ed

uctio

n in

th

e n

um

ber

of

find

ing

s an

d

man

agem

en

t re

spo

nse

s ar

isin

g f

rom

Au

dito

r-G

en

era

l au

dits

30

%5

8%

36

fin

din

gs

in 2

012

/13

co

mp

ared

to

15

find

ing

s in

20

13/1

4 r

esu

lted

in t

he t

arg

et

bein

g e

xceed

ed

ow

ing

to

imp

rove

d

inte

rnal

co

ntr

ols

an

d a

cco

un

tab

ility


Stra

teg

ic

Ob

ject

ive

7.1.

4:

All

perf

orm

ance b

aselin

e, o

utc

om

e a

nd

imp

act

eva

luat

ion

s re

sult in

pro

gra

mm

e im

pro

vem

en

ts c

on

trib

utin

g t

ow

ard

s co

ntin

uo

us

lear

nin

g a

nd

kn

ow

led

ge c

reat

ion

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Co

nd

uct

and

su

perv

ise b

aselin

e

stu

die

s an

d

perf

orm

ance

eva

luat

ion

s to

meas

ure

o

utc

om

es

and

im

pac

t

7.1.

4.1

Nu

mb

er

of

rese

arch

p

roto

co

ls a

pp

rove

d5

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

7.1.

4.2

Nu

mb

er

of

rese

arch

re

po

rts

issu

ed

3N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Eff

ect

pro

gra

mm

e

imp

rove

men

t b

ased

on

eva

luat

ion

fin

din

gs

7.1.

4.3

Nu

mb

er

of

pro

gra

mm

e

imp

rove

men

ts e

ffecte

d9

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

60

Pro

gra

mm

e 8

: Pro

ject

Man

agem

ent

Stra

teg

ic

Ob

ject

ive

8.1

.1:

Man

age p

roje

ct

pla

nn

ing

acco

rdin

g t

o t

he a

do

pte

d p

roje

ct

man

agem

en

t m

eth

od

olo

gy

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Est

ablis

h

imp

lem

en

tatio

n

team

s w

ith c

lear

ly

defin

ed

ro

les

and

re

spo

nsi

bili

ties

8.1

.1.1

Perc

en

tag

e o

f p

roje

ct

imp

lem

en

tatio

n t

eam

s est

ablis

hed

an

d f

un

ctio

nal

w

ithin

30

wo

rkin

g d

ays

of

Pro

ject

Pla

n a

pp

rova

l

100

%N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Stra

teg

ic

Ob

ject

ive

8.1

.2:

Facili

tate

an

d m

anag

e t

he im

ple

men

tatio

n o

f p

roje

cts

an

d m

on

itor

the c

losi

ng

ou

t o

f p

roje

cts

acco

rdin

g t

o t

he a

do

pte

d p

roje

ct

man

agem

en

t m

eth

od

olo

gy

Stra

teg

ic A

ctiv

ity

Nu

mb

erP

erfo

rman

ce In

dic

ato

rA

nn

ual

Tar

get

An

nu

al R

esu

ltR

atin

gR

esu

lt a

nd

Var

ian

ce E

xpla

nat

ion

Facili

tate

an

d

mo

nito

r p

roje

ct

imp

lem

en

tatio

n8

.1.2

.1

Perc

en

tag

e v

aria

nce

betw

een

imp

lem

en

tatio

n

and

pro

ject

pla

n in

term

s o

f tim

e, b

ud

get

and

m

ilest

on

es

Belo

w 1

0%

No

t ap

plic

able

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

Mo

nito

r p

roje

ct

clo

sure

8.1

.2.2

Perc

en

tag

e o

f p

roje

cts

clo

sed

ou

t w

ithin

30

day

s o

f cert

ificat

ion

wh

ere

ap

plic

able

30

%N

ot

app

licab

le

Th

e A

cco

un

ting

Au

tho

rity

of

the S

erv

ices

SETA

reso

lved

mid

-year

to

no

lon

ger

pu

rsu

e t

his

tar

get

du

e t

o c

han

ges

in

stra

teg

y, s

tru

ctu

re a

nd

/or

bu

sin

ess

p

rocess

es

and

as

such

it b

ecam

e

red

un

dan

t. A

Min

iste

rial

ap

plic

atio

n

reco

mm

en

ded

no

ting

th

is m

id-y

ear

ch

ang

e in

th

e A

nn

ual

Rep

ort

2

Th

is r

esu

lt is

rat

ed

, desp

ite t

he z

ero

tar

get,

du

e t

o a

po

licy

ch

ang

e a

s n

ote

d


Part CCorporate

Governance

62

1. Introduction

The Services SETA is a juristic body governed by the Services SETA Constitution, the Skills Development Act

(Act No. 97 of 1998), the Skills Development Levies Act (Act No. 9 of 1999), the Public Finance Management

Act (Act No. 1 of 1999) and Treasury Regulations.

The performance of the Services SETA is monitored regularly to ensure that the targets set out are achieved.

The Services SETA submits Quarterly Monitoring Reports (QMR) and an Annual Performance Report (APR)

to the Department of Higher Education and Training, both of which outline in detail the status of each

target in relation to performance.

2. Accounting Authority

The Accounting Authority is the highest decision making structure of the Services SETA. Its role and

functions include, among others, the following:

• The provision of strategic direction

• Ensuring effective internal controls

• Proper governance

• Performance monitoring

• Accountability

• Compliance with statutory requirements

• Management of institutional risk

• Liaison with stakeholders; and

• The establishment of relevant Committees and Chamber Committees to assist the Accounting

Authority to execute its mandate.

The Services SETA Accounting Authority comprises 15 members, the Chairperson, who is a Ministerial

Appointee, and two other Ministerial Appointees.

During the year under review, the Accounting Authority members were as follows:

Name of Member Association

1. Themba Mhambi Chairperson - Ministerial Appointee

2. Nolwandle Mantashe Ministerial Appointee

3. Madoda Sambatha Ministerial Appointee

Organised Business

4. Kate Moloto Association of BEE Verification Agencies (ABVA)

5. Duduzile Letseli Federation of African Professional Staffing Organisations (APSO)

6. Vikesh Roopchand Direct Marketing Association of South Africa (DMASA)


7. Willem Pietersen Employers Organisation for Hairdressing, Cosmetology and Beauty (EOHCB)

8. Teleni Shabangu SA Institute of Auctioneers(SAIA)

9. Leigh-Ann Georgiev Allied Nursing Association of South Africa (ANASA)

Organised Labour

10. Wiseman Dinwa Hotel, Liquor, Catering, Commercial and Allied Workers Union (HOTELICCA)

11. Pamela Snyman Institute of Estate Agents of South Africa (IEASA)

12. Mosa Mofokeng International Festivals & Events Association Africa (IFEA)

13. Samantha Brown Association for Office Professionals of South Africa (OPSA)

14. Leon Grobler United Association of South Africa (UASA)

15. Alpheus Phala South African Transport and Allied Workers Union (SATAWU)

3. Committees of the Accounting Authority

In executing its mandate, the Accounting Authority is assisted by the Executive Committee, the Finance

Committee, the Audit Committee, the Human Resources and Remuneration Committee and the

Governance, Risk and Strategy Committee.

The membership of the Committees was as follows during the year under review:

4. Executive Committee

Name of member Designation Constituency Association

1. Themba Mhambi Chairperson Ministerial Appointee Ministerial Appointee

2. Nolwandle Mantashe Member Ministerial Appointee Ministerial Appointee

3. Madoda Sambatha Member Ministerial Appointee Ministerial Appointee

4. Willem Pietersen Member Organised Business Employers Organisation for Hairdressing, Cosmetology and Beauty (EOHCB)

5. Mosa Mofokeng Member Organised Labour International Festivals & Events Association Africa (IFEA)

64

5. Finance Committee


1. Kate Moloto Chairperson Organised Business Association of BEE Verification Agencies (ABVA)

2. Teleni Shabangu Member Organised Business SA Institute of Auctioneers (SAIA)

3. Leon Grobler Member Organised Labour United Association of South Africa (UASA)

4. Wiseman Dinwa Member Organised Labour Hotel, Liquor, Catering, Commercial and Allied Workers Union (HOTELICCA)

5. Alpheus Phala Member Organised Labour South African Transport and Allied Workers Union (SATAWU)

6. Leigh-Ann Georgiev Member Organised Business Allied Nursing Association of South Africa (ANASA)

6. Audit Committee1


1. James Maboa Independent Member (Chairperson)

Independent Member n/a

2. Kate Moloto Member Accounting Authority Association of BEE Verification Agencies (ABVA)

3. Pamela Snyman Member Accounting Authority Institute Of Estate Agents Of South Africa (IEASA)

4. Sthembiso Ngwenya Independent Member


5. Ronald Moyo Independent Member


6. Lesego Motlhamme Independent Member


1 The Committee, whose chairperson is an independent Member, comprises a total of six (6) financially literate Members,

four (4) of which are independent Members, as dictated by the requirements of sound corporate governance and the Constitution

of the Services SETA.


7. Human Resources and Remuneration Committee


1. Nolwandle Mantashe Chairperson Ministerial Appointee Ministerial Appointee

2. Pamela Snyman Member Organised Labour Institute Of Estate Agents Of South Africa (IEASA)

3. Willem Pietersen Member Organised Business Employers Organisation for Hairdressing, Cosmetology and Beauty (EOHCB)

4. Alpheus Phala Member Organised Labour South African Transport and Allied Workers Union (SATAWU)

5. Leigh-Ann Georgiev Member Organised Business Allied Nursing Association of South Africa (ANASA)

8. Governance, Risk and Strategy Committee


1. Leon Grobler Chairperson Organised Labour United Association of South Africa (UASA)

2. Vikesh Roopchand Member Organised Business Direct Marketing Association of South Africa (DMASA)

3. Wiseman Dinwa Member Organised Labour Hotel, Liquor, Catering, Commercial and Allied Workers Union (HOTELICCA)

4. Madoda Sambatha Member Ministerial Appointee Ministerial Appointee

5. Teleni Shabangu Member Organised Business SA Institute of Auctioneers (SAIA)

6. Samantha Brown Member Organised Labour Association for Office Professionals of South Africa (OPSA)

7. Duduzile Letseli Member Organised Business Federation of African Professional Staffing Organisation (APSO)

While the Finance, Audit, Remuneration and the Governance, Risk and Strategy Committees each met

at least once per quarter, the Executive Committee met at least once per month, as prescribed by the

Services SETA’s Constitution.

66

Part DHuman

Resource Management


1. Overview

The Services SETA’s Human Resources

Department is tasked with facilitating human

capital recruitment and development, and

creating a productive working environment to

enhance the SETA’s organisational effectiveness

and service delivery.

Whereas in the previous financial year the HR

Department experienced various challenges,

the situation improved after the intervention

of the Accounting Authority through an adhoc

Committee focusing on HR matters and the

appointment of new staff. A Senior Manager:

Human Resources & Facilities Management was

appointed in November 2014 and took over from

the adhoc Committee.

During the year under review, there were 23 new

appointments, 27 resignations, and 16 internal

appointments. A breakdown of the SETA’s Senior

and Executive Management team is provided on

page 73.

A number of much-needed changes were made

to the organisational structure and performance

management; and a number of policies and

processes were either modified or introduced,

where necessary. An automated Leave

Management System that was implemented

in the previous year is working well in full

integration with the payroll and employee self-

service systems.

There is still much work ahead to refine some

of the latest changes and a particular effort is

still needed to improve staff morale and create

a united workforce. The groundwork laid during

this financial year is already bearing fruit and

augurs well for the future.

2. New organisational structure

The organisational re-alignment begun in the

previous year was completed during the year

under review. This is a major milestone that

enables the Services SETA to fulfil its role and

improve its performance against the National Skills

Development Strategy III.

The roles and responsibilities of employees have

been carefully aligned with the SETA’s strategic

objectives and performance plan. Job profiles

have been developed for each role and distributed

to each member of staff.

To accelerate the population of the new structure,

existing staff members were placed in their new

positions and job vacancies advertised. A number

of vacant senior positions, previously a major

concern, have been filled.

3. Induction programme formalised

The Services SETA previously did not have a

formal induction programme in place. During the

year under review the HR Department introduced

a formal induction programme that includes a

paper-based manual and a video. A probation

policy was also introduced.

This will ensure that employees are clear about

their roles and that of the organisation, so as to

eliminate role ambiguity and silo thinking which

can hamper the SETA’s efficiency and ultimate

performance.

4. Improved performance management

During the year under review a new performance

management system was introduced. It includes

a performance-based bonus system. This should

ensure that every employee contributes to the

SETA achieving its mandate as it is structured

to create a culture of high work-performance.

Employees are encouraged to be results and

service oriented at all times. Contracts were signed

with each employee agreeing on predetermined

objectives. Performance appraisals were and are

still held quarterly.

68

5. Human Resources and Remuneration Committee

The Remuneration Committee advises the

Accounting Authority on any matter relating to

human resources and remuneration in order

to enable the Accounting Authority to develop

consistent, fair and impartial strategies, policies,

procedures and processes for the compensation

of its staff. This is intended to attract, motivate

and retain talented people.

The Remuneration Committee evaluates and

makes recommendations to the Accounting

Authority in respect of the following issues

relating to the remuneration of the staff of the

SETA:

a. Developing guidelines for, and

reviewing the compensation and

performance of, staff members.

b. Reviewing and approving corporate

goals that are relevant to the

compensation of the Chief Executive

Officer.

c. Determining the Chief Executive

Officer’s compensation in accordance

with applicable rules and regulations.

d. Evaluating the Chief Executive Officer’s

performance against the goals and

objectives contemplated in this

paragraph.

e. Reviewing and reassessing the

adequacy of the remuneration policy

annually and recommending changes,

if any, to the Accounting Authority for

approval.

f. Ensuring that the Accounting Authority

members’ and committee members’

remuneration is in accordance with the

requirements of the PFMA and Treasury

Regulations.

6. Education and training

The Services SETA encourages its employees to

enhance their skills and education on an on-going

basis. It provides a bursary scheme that underpins

skills development and continuous professional

development.

To incentivise employees, the SETA pays all study

costs and offers certificate awards that have a cash

value to all employees that successfully complete

studies whilst in its employ.

A Skills Development Committee meets quarterly

and as-and-when required to discuss bursary

applications.

A total of 158 employees received training during

the 2014/2015 financial year and the SETA spent an

amount of R1.1m on training.

7. Labour relations

The Services SETA recognises the right of employees

to organise themselves and there is a Bargaining

Forum in place to address matters of mutual concern.

This ensures workers’ inclusivity in decision-making

in the workplace and their continuous consultation

on matters concerning their wellbeing as well as

that of the SETA. The 2014/2015 financial year went

smoothly from a labour relations perspective.

8. Employee wellness

The Services SETA is working towards formalising

an employee wellness programme. However, there

were a few activities during the 2014/2015 financial

year, such as industrial theatre performances, to

create awareness of disability in the workplace

and zumba (a type of dance/exercise routine)

demonstrations to create awareness of the benefits

of physical activity.


9. Facilities management and occupational health & safety

As a corporate citizen, the Services SETA abides by all legislative requirements regarding occupational health

and safety. A Health and Safety Committee is in existence and met every quarter during the 2014/2015

financial year. Health & safety officers and fire marshalls have been appointed and trained.

10. Employment Equity

Surveys were conducted on the state of Employment Equity in the SETA and certain gaps were identified

in this regard. To address these gaps the HR Department rolled out an Employment Equity awareness

campaign and established an Employment Equity Committee.

The Employment Equity Committee consists of 14 members that are nominated by their peers and

represent all employment levels and categories. The SETA developed terms of reference for the committee

and adopted a schedule of meetings and activities to ensure that the committee achieves its goals and

purpose.

An Employment Equity Analysis and a Disability Management Analysis were conducted to assess

demographics and management control representation against the new BBBEE codes.

With the aim of eliminating barriers to employment equity, the SETA’s HR Department also conducted an

Income Differential Analysis and a Qualitative Analysis on Workplace Practices and Environment.

As a reputable employer the Services SETA accepts its responsibility to implement measures and strategies

that seek to give effect to the stipulations of the Employment Equity Act. The Services SETA will actively

work towards creating an organisational culture and climate where suitably qualified employees from

designated groups become part and parcel of the organisation. Through its Employment Equity practices

the Services SETA seeks to redress the imbalances of the past as a strategic imperative and not just as a

moral step.

The mobilisation of skills and talents of all employees will form a crucial part of the Services SETA culture.

The focus in implementing the Employment Equity Act will be on:

- Creating equal opportunities in the workplace by eliminating unfair discrimination in policies, practices,

working environment and in the terms and conditions of employment.

- Implementing Affirmative Action measures that seek to ensure equitable representation of people

from designated groups at all levels of the Services SETA.

70

a. Services SETA Demographic Profile as at 31 March 2015

Occupation LevelsMale Female

Foreign Nationals Total

A C I W A C I W Male Female

Top Management 1 0 0 0 1 0 0 1 0 0 3

Senior Management 7 0 0 1 3 0 0 0 0 0 11

Professionaly qualified and experienced specialists and mid-managment

7 1 1 1 8 1 3 6 0 0 28

Skilled technical and academically qualified workers, junior managment, supervisors, foremen and superintendants

11 2 3 2 22 2 4 1 0 0 47

Semi-skilled and discrectionary decision making

10 0 1 0 29 4 1 2 0 0 47

Unskilled and defined decision making

11 5 1 2 32 7 4 5 0 0 67

Grand Total 47 8 6 6 95 14 12 15 0 0 203


b. Human capital statistics

Position Level ComplimentFilled

PositionsVacant

PositionsInternal

AppointmentExternal

Appointment

Semi Skilled A Band 10 1 9 0 1

Administrators B Band 75 64 21 0 1

OfficersC Lower

Band133 47 77 7 1

Senior Officers / Coordinators

C Upper Band

114 47 64 - 9

Managers / Specialists

D Lower Band

53 27 24 7 1

Senior ManagersD Upper

Band19 10 9 1 8

Executive Managers

E Band 4 3 1 1 2

CEO E Upper Band 1 - 1 - -

409 203 206 16 23

c. Terminations

Name and Surname Date Terminated

Mrs Z Heldsinger 2014/04/17

Mr S G Gumede 2014/04/30

Mr G D Brummer 2014/05/31

Mr JJC Mouton 2014/06/13

Miss YL Ruiters 2014/06/18

Mr L Roman 2014/07/27

Mrs LR Badroodien 2014/07/30

Miss LK Chipane 2014/08/15

Miss R Cassim 2014/09/05

Mr X Majija 2014/09/18

Mrs J Lawrence 2014/09/25

Mrs R Slabbert 2014/09/30

Mrs A Jousten 2014/09/30

Miss N Lanie 2014/10/08

Ms S Bisnath 2014/10/15

Mr T Nunn 2014/10/25

Miss M Adriaanse 2014/11/28

Mrs MG Hiscock 2014/11/30

Miss NS Zondi 2014/12/31

Mrs M J Manaka 2015/01/14

72

Name and Surname Date Terminated

Mrs B Jacobs 2015/01/15

Miss SS Shangase 2015/01/30

Mrs KE Masango 2015/01/30

Mr LD Khunwana 2015/01/30

Mrs C Molele 2015/02/13

Mrs EL Schonfeldt 2015/02/28

Mrs B Moja-Ramantsi 2015/02/28

Mrs Z Mbelu 2015/03/31

Total 28

Thandi MkhizeSenior Manager:

Quality Management


11. Executive and Senior Management

Liesel KöstlichActing Chief Executive Officer

Andile NongogoChief Financial Officer

Paul DhlaminiSenior Manager:

Learning Interventions

Thandi MkhizeSenior Manager:

Quality Management

Ntombizodwa Ndhlovu Executive Manager:

Corporate Services

Yewande MfebeSenior Manager:

Organisational Compliance

Amanda BuzoSenior Manager:

Legal Services

Lehloma RamajoeSenior Manager:

Special Projects

Makhaya Blaai Senior Manager:

Human Resources

74

Part EFinancial

Information


Services Sector Education and Training Authority Financial Statements for the year ended March 2015

The annual financial statements for the year ended March 2015 have been approved by the Accounting

Authority in terms of section 51 (1) (f) of the Public Finance Management Act, No 1 of 1999, as amended

and are signed on their behalf by the Chairperson of the Services SETA Accounting Authority.

Mr Themba Mhambi


Services SETA

Date: 29 July 2015

76


1. Audit Committee Responsibility Report

Report of the Audit Committee required by Treasury Regulation 27.1.7 and 27.1.10(b) and (c) issued in

terms of the Public Finance Management Act (PFMA) 1 of 1999, as amended by Act 29 of 1999.

We are pleased to present our report for the financial year ended 31 March 2015.

Audit Committee members and attendance

The Audit Committee consists of the members listed hereunder and meets at least 4 times per annum as

per its approved terms of reference. During the current financial year 9 meetings were held.

Name of member Number of meetings attended

James Maboa - (Chairperson)(Reappointed 01 April 2014) 9

Sithembiso Ngwenya - (Appointed 01 April 2014) 9

Lesego Motlhamme - (Appointed 01 April 2014) 5

Ronald Moyo - (Appointed 01 April 2014) 4

Kate Moloto - (Accounting Authority Member) 5

Pam Snyman - (Accounting Authority Member) 8

Furthermore at least one representative from the Auditor General and Internal Auditors are present at

all Audit Committee meetings, regardless of whether or not the agenda items directly concern the

audit of the Services SETA’s financial statements.

Audit Committee responsibility

The Audit Committee reports that it has complied with its responsibilities arising from section 51(1) (a) (ii)

and 76 (4) of the PFMA and Treasury Regulation 3.1.

The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit

Committee Charter has regulated its affairs in compliance with this Charter and has discharged all

its responsibilities as contained therein.

The effectiveness of internal control

The system of internal controls applied by the Services SETA over financial and risk management is

effective, efficient and transparent. In line with the PFMA and the King III Report on Corporate Governance

requirements, Internal Audit provides the Audit Committee and management with assurance that

the internal controls are appropriate and effective. This is achieved by means of the risk management

process, as well as the identification of corrective actions and suggested enhancements to the controls

and processes. From the various reports of the Internal Auditors, the Audit Report on the financial

statements, and the management report of the Auditor-General South Africa, it was noted that no

matters were reported that indicate any material deficiencies in the system of internal control or

any deviations therefrom. Accordingly, we can report that the system of internal controls over financial

reporting for the period under review was efficient and effective.



The quality of in-year management and monthly/quarterly reports submitted in terms of the PFMA has

been satisfactory.

The Audit Committee is satisfied with the content and quality of monthly and quarterly reports that

were prepared and issued to the Accounting Authority of the Services SETA during the year under review.

Evaluation of financial statements

The Audit Committee has:

- reviewed and discussed the audited financial statements included in the annual report, with the

Auditor- General and the Accounting Authority;

- reviewed the Auditor-General of South Africa’s management report and management’s response

thereto

- reviewed changes in accounting policies and practices;

- reviewed the entities compliance with legal and regulatory provisions

The Audit Committee concurs with and accepts the Auditor-General of South Africa’s report on the

financial statements, and is of the opinion that the audited financial statements should be accepted

and read together with the report of the Auditor-General of South Africa.

Internal audit

The Audit Committee is satisfied that the internal audit function is operating effectively and that it

has addressed the risks pertinent to the Services SETA and its audits.

Auditor-General of South Africa

The Audit Committee has met with the Auditor-General of South Africa to ensure that there are no

unresolved issues.

Chairperson of the Audit Committee

Date: 29 July 2015

78


2. Report of the auditor-general to parliament on the Services Sector Education and Training Authority

Report on the financial statements

Introduction

1. I have audited the financial statements of the Services Sector Education and Training Authority (SSETA)

set out on pages 87 to 136, which comprise the statement of financial position as at 31 March 2015,

the statement of financial performance, statement of changes in net assets, cash flow statement

and the statement of comparison of budget information with actual information for the year then

ended, and the notes comprising a summary of significant accounting policies and other explanatory

information.

Accounting Authority’s responsibility for the financial statements

2. The accounting authority is responsible for the preparation and fair presentation of these financial

statements in accordance with the South African Standards of Generally Recognised Accounting

Practice (SA Standards of GRAP), the requirements of the Public Finance Management Act of South

Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Skills Development Act, 1998 (Act No. 97 of 1998)

(SDA), and for such internal control as the accounting authority determines is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or

error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted

my audit in accordance with Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the

General notice issued in terms thereof and the International Standards on Auditing. Those standards

require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures

in the financial statements. The procedures selected depend on the auditor’s judgement, including

the assessment of the risks of material misstatement of the financial statements, whether due to fraud

or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the financial statements in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of accounting estimates made by management, as

well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of

the SSETA as at 31 March 2015, and its financial performance and cash flows for the year then ended

in accordance with SA Standards of GRAP and the requirements of the PFMA and SDA.



Emphasis of matter

7. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Significant uncertainties

8. With reference to note 25 to the financial statements, the entity is both the defendant and plaintiff

in lawsuits. The ultimate outcome of the matters cannot presently be determined, consequently no

asset has been recognised and no provision for any liability that may result has been made in the

financial statements

Additional matter

9. I draw attention to the matter below. My opinion is not modified in respect of this matter.

SETA re-licencing

10. In April 2011, the Minister of Higher Education and Training extended the licences of the SETAs for an

additional period of five years expiring on 31 March 2016. As at the date of this report, the Minister has

not yet made a pronouncement of renewal of the SETA licences beyond 31 March 2016.

Report on other legal and regulatory requirements

11. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) and the general

notice issued in terms thereof, I have a responsibility to report findings on the reported performance

information against predetermined objectives for selected objectives presented in the annual

performance report, non-compliance with legislation and internal control. The objective of my tests

was to identify reportable findings as described under each subheading but not to gather evidence to

express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these

matters.

Predetermined objectives

12. I performed procedures to obtain evidence about the usefulness and reliability of the reported

performance information for the following selected programmes presented in the annual performance

report of public entity for the year ended 31 March 2015:

· Programme 3: Mandatory grants

· Programme 4: Learning interventions

· Programme 6: Qualifications and quality management

13. I evaluated the reported performance information against the overall criteria of usefulness and

reliability.

14. I evaluated the usefulness of the reported performance information to determine whether it was

presented in accordance with the National Treasury’s annual reporting principles and whether the

reported performance was consistent with the planned programmes. I further performed tests to

determine whether indicators and targets were well defined, verifiable, specific, measurable, time

bound and relevant, as required by the National Treasury’s Framework for managing programme

performance information (FMPPI).

15. I assessed the reliability of the reported performance information to determine whether it was valid,

accurate and complete.

80


16. I did not raise any material findings on the usefulness and reliability of the reported performance information for the following programmes:

· Programme 3: Mandatory grants· Programme 4: Learning interventions· Programme 6: Qualifications and quality management

Additional matters17. I draw attention to the following matters:

Achievement of planned targets18. Refer to the annual performance report on pages 27 to 60 for information on the achievement of

planned targets for the year.

Adjustment of material misstatements19. I identified material misstatements in the annual performance report submitted for auditing on the

reported performance information of Programme 4: Learning interventions and Programme 6: Qualifications and quality management. As management subsequently corrected the misstatements I did not raise any material findings on the usefulness and reliability of the reported performance information.

Compliance with legislation20. I performed procedures to obtain evidence that the public entity had complied with applicable

legislation regarding financial matters, financial management and other related matters. I did not identify any instances of material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA.

Internal control21. I considered internal control relevant to my audit of the financial statements, annual performance

report and compliance with legislation. I did not identify any significant deficiencies in internal control.

Other reportsInvestigations22. An investigation was conducted by an independent consulting firm on request of the entity into

certain payments made to the previous executive and senior management of SSETA. The investigation was concluded in 2012. The matter was handed over to the National Prosecuting Authority for further investigations and has not been finalised by the date of this report.

23. The accounting authority commissioned a forensic investigation into all discretionary grants that were awarded from 1 April 2007 to 31 March 2014. The investigation commenced on 1 July 2014. The investigation was initiated to gain assurance that the projects were awarded in compliance with the regulations and that the money was spent as intended. As at 31 March 2015 the investigation was not

concluded.

Pretoria

29 July 2015



3. Accounting Authority’s Responsibilities and Approval

The Accounting Authority is required by the Public Finance Management Act (Act 1 of 1999), to

maintain adequate accounting records and is responsible for the content and integrity of the financial

statements and related financial information included in this report. It is the responsibility of the

Accounting Authority to ensure that the financial statements fairly present the state of affairs of the

Services SETA as at the end of the financial year and the results of its operations and cash flows for

the year then ended. The external auditors are engaged to express an independent opinion on the

financial statements and were given unrestricted access to all financial records and related data.

The financial statements have been prepared in accordance with Standards of Generally Recognised

Accounting Practice (GRAP) including any interpretations, guidelines and directives.

The financial statements set out on page 87 to 136, which have been prepared on the basis of accounting

policies applicable to a going concern, were approved by the Accounting Authority on the 29 July 2015

Mr Themba Mhambi


82


4. Report of the Accounting Authority

1. Incorporation

The Services Sector Education and Training Authority (Services SETA) was established in terms of

Section 9(1) of the Skills Development Act, 1998 (Act No 97 of 1998) as amended, as a Sector Education

and Training Authority with effect from 1 April 2000 to March 2005. It was subsequently re-established

by the Minister of Labour for the period April 2005 – March 2010, in March 2010, the Minister of Higher

Education and Training extended the period of establishment of all SETAs to 31 March 2016.

2. Governance

The Accounting Authority acknowledges and accepts responsibility for the system of internal financial

controls established by the Services SETA and places considerable importance on maintaining a strong

control environment. To enable itself to meet these responsibilities, the Accounting Authority sets

standards for internal controls aimed at reducing the risk of error or deficit in a cost effective manner. The

standards include the proper delegation of responsibilities within a clearly defined framework, effective

accounting procedures and adequate segregation of duties to ensure an acceptable level of risk.

These controls are monitored throughout the Services SETA and all employees are required to maintain

the highest ethical standards in ensuring the Services SETA’s business is conducted in a manner that in

all reasonable circumstances is above reproach. The focus of risk management in the Services SETA is on

identifying, assessing, managing and monitoring all known forms of risk across the organisation. While

operating risk cannot be fully eliminated, the Services SETA endeavours to minimise it by ensuring

that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within

predetermined procedures and constraint.

The Accounting Authority is of the opinion that, based on the information and explanations given by

management, the system of internal control provides reasonable assurance that the financial records

may be relied on for the preparation of the financial statements. However, any system of internal

financial control can provide only reasonable, and not absolute, assurance against material misstatement

or deficit.

The financial statements are prepared in accordance with the South African Statements of Generally

Accepted Accounting Practice (GAAP), including any interpretations of such Statements issued by

the Accounting Practices Board, and in accordance with the prescribed Standards of Generally

Recognised Accounting Practices (GRAP) issued by the Accounting Standards Board as the prescribed

framework by National Treasury.



3. Review of activities

Main business and operations

The Services SETA is engaged in education and training for the services sector and operates principally

in South Africa.

4. Going concern

The financial statements have been prepared on the basis of accounting policies applicable to a going

concern. This basis presumes that funds will be available to finance future operations and that the

realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in

the ordinary course of business.

The Services SETA’s license expires on 31 March 2016. As at the date of approval of the financial statements

29 July 2015, when the financial year under review ended, the Minister of Higher Education and Training

had not yet pronounced on the relicencing of SETAs.

5. Subsequent events

The Services SETA has submitted to the Minister of Higher Education and Training an application

for the rollover of accumulated reserves. At the time of preparation of the annual financial statements

the feedback was still outstanding.

6. Remuneration of Accounting Authority and Executive Managers Emoluments

The Executive Management, Accounting Authority and Audit Committee members’ remuneration is

reflected in note 27 of the annual financial statements. Executive Management is employed on a full time

basis. The members of the Accounting Authority and Audit Committee are remunerated for attending

Accounting Authority and sub committee meetings as well as other engagements. Their remuneration

is based on National Treasury Guidelines and the remuneration is approved by the Minister of Higher

Education and Training.

7. Approval

Mr Themba Mhambi


Services SETA

84


5. Materiality and Significant Framework

TREASURY REGULATION 28.1.5

“For purposes of “material” [sections 50(1), 55(2) and 61(1) (c) of the Act] and “significant” [section 54(2) of the

Act], the accounting authority must develop and agree a framework of acceptable levels of materiality and

significancewith the relevant executive authority in consultation with the external auditors.”

Section 50(1) (1) The accounting authority for a public entity must –

The Accounting Authority implement effective and efficient internal controls, governance and risk management processes through its committees and as a collective

(a) Exercise the duty of utmost care toensure reasonable protection of the assetsand records of the public entity;

Key policies and procedures have been approved

(b) Act with fidelity, honesty, integrity andin the best interest of the public entity in managing the financial affairs of the public entity;

Good governance, professional conduct and ethical behaviour is encouraged across all organisational levels

(c) On request, disclose to the executive authority responsible for that public entity or the legislature to which the public entity is accountable, all material facts, including those reasonably discoverable, which in any way influence the decision or actions of the executive authority or that legislature; and

Through frequent engagements with stakeholders (internal and external), important and relevant information is shared and transparency is achieved

(d) Seek, within the sphere of influence of that accounting authority, to prevent any prejudice to the financial interests of the state.

Services SETA implements an on-going risk management assessment and review processes to mitigate and prevent any prejudice to the financial interest of Services SETA

Section 55(2) The annual report and financial statements referred to by PFMA Subsection 55 (1)(d) must –

(a) Fairly present the state of affairs of the public entity, its business, its financial results, its performance against predetermined objectives and its financial position as at the end of the financial year concerned;

As a collective the Accounting Authority, its committees and management are involved into the compilation and review processes of the Annual Financial Statements and the Annual Report to ensure that they fairly present and disclose results of the Services SETA

(b) include particulars of – All losses are disclosed in the AFS

(i) Any material losses through criminalconduct and any irregular expenditureand fruitless and wasteful expenditure thatoccurred during the financial year;

(ii) Any criminal or disciplinary steps takenas consequence of such losses or irregularexpenditure or fruitless and wastefulexpenditure;

All activities are disclosed in the AFS

(iii) Any losses recovered or written off; All losses recovered or written off are disclosed in the AFS

(iv) Any financial assistance received from the state and commitments made by the state on its behalf; and

All financial assistance received or committed is disclosed

(v) Any other matters that may be prescribed; and

Services SETA will apply any other matters that become prescriptive



(c) Include the financial statements of any subsidiaries.

Not applicable

Section 54 (2) (1) Before a public entity concludes any of the following transactions, the accounting authority for the public entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its executive authority for approval of the transaction.

Establishment or participation in the establishment of a company;

Not applicable

Participation in a significant partnership, trust, unincorporated joint venture or similar arrangement.

Not applicable

Acquisition of disposal of a significant shareholding in a company.

Not applicable

Acquisition or disposal of a significant asset. Not applicable to this reporting period

Commencement or cessation of a significant business activity; and

Not applicable

A significant change in the nature or extent of its interest in a significant partnership, trust, unincorporated joint venture or similar arrangement.

Not applicable

Section 61 (1)(c )

The report of an auditor appointed interms of section 58(1)

The level of material loss is assessed at 0.5% ofgross revenue, limited to R3,6 million

(b) must be addressed to the executive authority responsible for the public entity concerned and must state separately in respect of each of the following matters whether in the auditor’s opinion –

Revenue includes levy income, interest andpenalties and any other income

(c) The transactions that had come to the auditor’s attention during auditing were in all material respects in accordance with the mandatory functions of the public entity determined by law or otherwise

(1) An institution to which this Act applies may not borrow money or issue a guarantee, indemnity or security, or enter into any other transaction that binds or may bind that institution or the Revenue Fund to any future financial commitment, unless such borrowing, guarantee, indemnity, security or other transaction –

Services SETA operates within the ambit as set by this clause and its related Acts

(a) Is authorised by this Act; and

(b) In the case of public entities, is also authorised by other legislation not in conflict with this Act; and

(c) In the case of loans by a province or a provincial government business enterprise under the ownership control of a provincial executive, is within the limits as set in terms of the Borrowing Powers of Provincial Governments Act, 1996 (Act No 48 of 1996).

86


Index

The statements set out below comprise the financial statements presented to the parliament:

Index Page

Statement of Financial Position 87

Statement of Financial Performance 88

Statement of Changes in Net Assets 89

Cash Flow Statement 90

Statement of Comparison of Budget and Actual Amounts 91

Accounting Policies 93

Notes to the Financial Statements 107



Statement of Financial Position as at 31 March 2015

Note(s)2015

R ‘000

2014Restated*

R ‘000

Assets

Current Assets

Inventories 3 249 373

Receivables from exchange transactions 4 6,060 4,338

Receivables from non-exchange transactions 5 3,913 8,198

Deposits 9 537 -

Cash and cash equivalents 6 1,797,813 2,297,672

1,808,572 2,310,581

Non-Current Assets

Property, plant and equipment 7 55,169 53,154

Intangible assets 8 715 940

Deposits 9 77 621

55,961 54,715

Total Assets 1,864,533 2,365,296

Liabilities

Current Liabilities

Payables from exchange transaction 10 41,282 32,285

Payables from non-exchange transactions 11 288,625 1,839,779

Provisions 12 113,750 73,957

443,657 1,946,021

Total Liabilities 443,657 1,946,021

Net Assets 1,420,876 419,275

Net Assets

Reserves

Revaluation reserve 13 15,371 11,075

Employer grant reserve 14 111 1,262

Administration grant reserve 14 40,006 40,505

Discretionary grant reserve 14 1,365,388 366,433

Total Net Assets 1,420,876 419,275

88


Statement of Financial Performance

Note(s)2015

R ‘000

2014Restated*

R ‘000

Revenue

Revenue from exchange transactions

Other income 15 33 32

Interest received - investment 16 136,846 95,807

Total revenue from exchange transactions 136,879 95,839

Revenue from non-exchange transactions

Transfer revenueSkills Development Levy: Income 17 1,394,554 1,221,163

Skills Development Levy: Interest and Penalties 17 39,266 26,785

Total revenue from non-exchange transactions 1,433,820 1,247,948

Total revenue 1,570,699 1,343,787

Expenditure

Employer grants and project expenses 21 (397,531) (391,056)

Administration expenses 18 & 19 (165,975) (176,625)

Transfers to Public Educational Institutions 20 - (311,478)

Total expenditure (563,506) (879,159)

Loss on disposal of assets (618) (11)

Surplus for the year before NSF uncommitted funds liability 1,006,575 464,617

NSF uncommitted funds 11 - (1,567,759)

Provision for bad debts relating to uncommitted funds (9,269) -

Net surplus/(deficit) for the year 997,306 (1,103,142)



Stat

emen

t o

f C

han

ges

in N

et A

sset

sR

eval

uat

ion

rese

rve

R ‘0

00

Em

plo

yer

gra

nt

rese

rve

R ‘0

00

Ad

min

istr

ati

on

rese

rve

R ‘0

00

Dis

cre

tio

na

ry

rese

rve

R ‘0

00

Tota

l res

erve

s**

R ‘0

00

Un

app

rop

riat

ed

rese

rve

R ‘0

00

Tota

l net

ass

ets

R ‘0

00

Clo

sin

g b

alan

ce a

s p

revi

ou

sly

rep

ort

ed

31

Mar

ch

20

1311

,075

1,8

143

8,6

191,

470

,95

81,

52

2,4

66

-1,

52

2,4

66

Pri

or

peri

od

err

or

- N

ote

28

--

(50

)-

(50

)-

(50

)

Ap

plic

atio

n o

f u

nap

pro

pri

ate

d s

urp

lus/

(de

ficit)

--

50

(50

)-

--

Bal

ance

at

01

Ap

ril 2

013

Ch

ang

es

in n

et

asse

ts

Surp

lus

for

the y

ear

11,0

75

-

1,8

14

-

38

,619

-

1,4

70,9

08 -

1,5

22

,416

-

-

(1,1

03,

142

)

1,5

22

,416

(1,1

03,

142

)

Ap

plic

atio

n o

f u

nap

pro

pri

ate

d s

urp

lus/

de

ficit

as

pre

vio

usl

y re

po

rte

d-

25

2,2

26

(18

,06

2)

50

,02

72

84

,19

1(2

84

,19

1)-

Pri

or

year

err

or

- N

ote

28

-(4

,95

2)

-(1

,38

2,3

80

)(1

,38

7,3

32

)1,

38

7,3

32

-

Ap

plic

atio

n o

f u

nap

pro

pri

ate

d s

urp

lus/

(de

ficit)

-(2

47,

82

6)

19,9

48

22

7,8

78-

--

Tota

l ch

ang

es

-(5

52

)1,

88

6(1

,10

4,4

75)

(1,1

03,

141)

1,10

3,14

1-

Res

tate

d*

Bal

ance

at

01

Ap

ril 2

014

Ch

ang

es

in n

et

asse

ts

Re

valu

atio

n o

f la

nd

an

d b

uild

ing

s(H

ead

offi

ce

)

11,0

75

4,4

50

1,2

62 -

40

,50

5 -

36

6,4

33 -

419

,275

4,4

50

- -

419

,275

4,4

50

Imp

airm

en

t lo

sse

s o

n r

eva

lue

d B

uild

ing

(KZ

N)

(15

4)

--

-(1

54

)-

(15

4)

Ne

t in

co

me (

loss

es)

re

co

gn

ise

d d

ire

ctl

y in

ne

t as

sets

4,2

96

--

-4

,29

6-

4,2

96

Surp

lus

for

the y

ear

--

--

-9

97,

30

69

97,

30

6

Tota

l reco

gn

ised

inco

me a

nd

exp

en

ses

for

the y

ear

4,2

96

--

-4

,29

69

97,

30

61,

00

1,6

02

Ap

plic

atio

n o

f u

nap

pro

pri

ate

d s

urp

lus/

(de

ficit)

-2

26

,52

616

,22

375

4,5

57

99

7,3

06

(99

7,3

06

)-

Re

-allo

cat

ion

of

fun

ds

to r

ese

rve

s-

(22

7,6

77)

(16

,72

2)

244

,39

9-

--

Tota

l ch

ang

es

4,2

96

(1,1

51)

(49

9)

99

8,9

55

1,0

01,

60

1-

1,0

01,

60

1

Bal

ance

at

31

Mar

ch 2

015

15,3

7111

14

0,0

06

1,3

65

,38

81,

42

0,8

76-

1,4

20

,876

No

te(s

)13

1414

14

90


Cash Flow Statement

Note(s)2015

R ‘000

2014Restated*

R ‘000

Cash flows from operating activities

Cash receipts from stakeholders

Levies, interest and penalties received 1,433,820 1,247,948

Interest income 134,962 93,814

Other cash receipts from Stakeholders 33 39

Grants, transfers and funds received 4,974 -

1,573,789 1,341,801

Cash payments to stakeholders, suppliers and employees

Grants and project payments (1,884,673) (379,847)

Compensation of employees (109,433) (92,372)

Transfers - (311,478)

Payments to suppliers and other (78,554) (67,418)

(2,072,660) (851,115)

Net cash flows from operating activities 23 (498,871) 490,686

Cash flows from investing activities

Purchase of property, plant and equipment 7 (998) (4,036)

Proceeds from sale of property, plant and equipment 7 33 37

Purchase of intangible assets 8 (23) (478)

Net cash flows from investing activities (988) (4,477)

Net increase in cash and cash equivalents (499,859) 486,209

Cash and cash equivalents at the beginning of the year 2,297,672 1,811,465

Cash and cash equivalents at the end of the year 6 1,797,813 2,297,672



Statement of Comparison of Budget and Actual AmountsBudget on Accrual Basis

Approved Budget R’000

AdjustmentsR’000

Final Budget R’000

Actual Amounts on comparable

basis R ‘000

Difference between

final budget and actual

R ’000 Note

Statement of Financial Performance Revenue

Revenue from exchange TransactionsOther income - - - 33 33

Interest received - investment 57,560 68,955 126,515 136,846 10,331 Note 32

Total revenue from exchange transactions 57,560 68,955 126,515 136,879 10,364

Revenue from non-exchange transactionsSkills Development Levy Income 1,146,073 252,122 1,398,195 1,394,554 (3,641) Note 32

Skills Development Interest and Penalties - 38,363 38,363 39,266 903 Note 32

Total revenue from non- exchange transactions 1,146,073 290,485 1,436,558 1,433,820 (2,738)

Total revenue 1,203,633 359,440 1,563,073 1,570,699 7,626

ExpenditureEmployer grants and subsidies paid (768,636) 145,557 (623,079) (397,531) 225,548 Note 32

Administrative Expenses (150,423) (32,946) (183,369) (165,975) 17,394 Note 32

Total expenditure (919,059) 112,611 (806,448) (563,506) 242,942

Operating surplus/(Deficit) 284,574 472,051 756,625 1,007,193 250,568

Loss on disposal of assets - - - (618) (618)

Surplus/(Deficit) for the year before provision for uncommitted fundsProvision for uncommitted funds

284,574

-

472,051

-

756,625

-

1,006,575

(9,269)

249,950

(9,269)

Net Surplus for the year 284,574 472,051 756,625 997,306 240,681

Reconciliation

92


Statement of Comparison of Budget and Actual AmountsBudget on Accrual Basis

Approved Budget R’000

AdjustmentsR’000

Final Budget R’000

Actual Amounts on comparable

basis R ‘000

Difference between

final budget and actual

R ’000 Note

Capital Budget

Assets

Non-Current Assets

Building Machinery - - - 369 369 32

Computer Equipment 1,040 (103) 937 425 (512) 32

Computer Software 21,440 38,560 60,000 - (60,000) 32

Fixture and Fittings 5,396 5,529 10,925 204 (10,721) 32

Office Furniture - 10,320 10,320 - (10,230) 32

27,876 54,216 82,092 998 (81,094)



Accounting Policies

1. Presentation of Financial Statements

The financial statements have been prepared in accordance with the Standards of Generally

Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance

with Section 91(1) of the Public Finance Management Act (Act 1 of 1999).

These financial statements have been prepared on an accrual basis of accounting and are in

accordance with historical cost convention as the basis of measurement, unless specified otherwise.

They are presented in South African Rands.

In the absence of an issued and effective Standard of GRAP, accounting policies for material

transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP

3 read with Directive 5.

Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required

or permitted by a Standard of GRAP.

A summary of the significant accounting policies, which have been consistently applied in the preparation

of these financial statements, are disclosed below.

1.1 Going concern assumption

These financial statements have been prepared based on the expectation that the entity will continue

to operate as a going concern for at least the next 12 months.

The Services SETA’s licence expires on 31 March 2016. As at 31 March 2015 there was no indication of

whether or not it will be relicensed.

1.2 Property, plant and equipment

Recognition

Property, plant and equipment are tangible non-current assets that are held for use in the delivery of the

Services SETA’s mandate and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised as an asset when it is probable that

future economic benefits or service potential associated with the item will flow to the entity and the

cost of the item can be measured reliably.

94


Accounting Policies

Initial Measurement.

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable

to bring the asset to the location and condition necessary for it to be capable of operating in the

manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Property, plant and equipment which have a cost price less than R 5 000 are expensed and not capitalised.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of

acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or

monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially

measured at fair value (the cost). If the acquired item’s fair value is not determinable, it’s deemed cost is

the carrying amount of the asset(s) given up.

The initial estimate of the costs of dismantling and removing the item and restoring the site on which

it is located is also included in the cost of property, plant and equipment, where the entity is obligated

to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for

purposes other than the production of inventories.

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases

when the item is in the location and condition necessary for it to be capable of operating in the manner

intended by management.

Major spare parts and stand-by equipment which are expected to be used for more than one

period are included in property, plant and equipment. In addition, spare parts and stand-by equipment

which can only be used in connection with an item of property, plant and equipment are accounted for

as property, plant and equipment.



Accounting Policies

1.2 Property, plant and equipment (continued)

Subsequent Measurement

Building machinery, furniture and fixtures, motor vehicle, office equipment, computer equipment and

computer network is carried at cost less accumulated depreciation and any impairment losses except for

land and buildings which is carried at revalued amount being the fair value at the date of revaluation

less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Revaluation

Land and buildings are revalued every three years. (The last revaluation was done on the 31 March 2015).

When an item of property, plant and equipment is revalued, any accumulated depreciation at the

date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount

restated to the revalued amount of the asset.

Any increase in an asset’s carrying amount, as a result of a revaluation, is credited directly to a

revaluation surplus. The increase is recognised in surplus or deficit to the extent that it reverses a

revaluation decrease of the same asset previously recognised in surplus or deficit.

Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in surplus or deficit

in the current period. The decrease is debited directly to a revaluation surplus to the extent of any

credit balance existing in the revaluation surplus in respect of that asset.

The revaluation surplus in equity related to a specific item of property, plant and equipment is

transferred directly to retained earnings when the asset is derecognised.

Impairment

Where the recoverable amount of an asset is less than its carrying amount, the carrying amount of the

asset is reduced to its recoverable amount. An impairment loss is recognised in the surplus or deficit

for the period, unless the asset is carried at fair value or revalued amount. The impairment loss of a

revalued asset decreases or increases the revaluation surplus or deficit. All items of property, plant

and equipment are assessed for any indications of impairment at each reporting date. If an impairment

exists then the recoverable amounts are estimated.

Depreciation

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives

to their estimated residual value. The depreciation of assets commences on the date that the asset is

available for use, even if it is not yet in use.

.

The useful lives of the property, plant and equipment are assessed annually and are detailed in note 7.

The depreciation charge is to depreciate the book value over the average useful life of the asset to its

assessed residual value.

96


Accounting Policies

Depreciation is calculated and provided for on an annual basis. If the residual value of an asset is at

least equal to its carrying amount, depreciation will cease.

Any gains or losses arising from the derecognition of an asset is included in profit or loss when the item

is derecognised.

Residual values

The residual values of buildings were determined by independent property valuators.

The SETA reviews the residual values on an annual basis. The review revealed that the residual values

used in the current or prior periods were still valid. No significant variances were identified. Residual

values are reviewed at each reporting date.

Derecognition

The carrying amount of an item of property plant and equipment is derecognised on disposal or when

there are no future economic benefits expected from its use or disposal.

Gains and losses on disposal of property, plant and equipment are determined by reference to their

carrying amount and are taken into account in determining surplus.

1.3 Intangible assets

An asset is identifiable if it is either separable, i.e. is capable of being separated or divided from an

entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related

contract, identifiable assets or liability, regardless of whether the entity intends to do so or arises

from binding arrangements (including rights from contracts), regardless of whether those rights are

transferable or separable from the entity or from other rights and obligations.

Recognition.

An intangible asset is recognised when it is probable that the expected future economic benefits or

service potential that are attributable to the asset will flow to the entity; and the cost or fair value of the

asset can be measured reliably.

The entity assesses the probability of expected future economic benefits or service potential

using reasonable and supportable assumptions that represent management’s best estimate of the set of

economic conditions that will exist over the useful life of the asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date

of acquisition is measured at its fair value as at that date.



Accounting Policies

Initial Measurement

An intangible asset is initially measured at its cost and where an intangible asset is acquired at no cost

or for a nominal cost, the cost is measured at its fair value as at the acquisition date.

Intangible assets which has a cost price less than R 5 000 are expensed and not capitalised.

Subsequent measurement

Subsequent to initial recognition, an intangible asset is carried at cost less accumulated

amortisation and any accumulated impairment losses.

Amortisation

The amortisable/depreciable amount of an intangible asset with a finite useful life is allocated on a

systematic basis over its useful life..

Amortisation begins when the asset is available for use and is in a condition necessary for it to be

capable of operating in the manner intended by management.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual

values. The useful lives are detailed in note 8.

Derecognition

Intangible assets are derecognised on disposal when no future economic benefits or service potential are

expected from its use.

The gain or loss is the difference between the net disposal proceeds, if any, and the carrying amount.

It is recognised in surplus or deficit when the asset is derecognised.

1.4 Administration, grants and project expenditure

Mandatory grants

The grant payable and the related expenditure are recognised when the employer has submitted an

application for a grant in the prescribed form within the agreed upon cut-off period and such application

complies with all legislative requirements and when the monthly levy payments have been received

from the employer. The grant is equivalent to 20% of the total levies paid by the employer during the

corresponding financial period for the skills planning grant.

98


Accounting Policies

1.4 Administration, grants and project expenditure (continued)

Discretionary grants and project expenditure

The funding for discretionary grants and projects stems from the 49.5% of the total levies paid by

the employers, levy grants that are not claimed by employers, the surplus of administration levies not

utilised, investment income, and other income generated by the Services SETA.

A SETA may out of any surplus monies determine and allocate discretionary grants to employers,

education and training providers and workers of the employers who have submitted an application for a

discretionary grant in the prescribed form within the agreed upon cut-off period.

Project expenditure comprises:

- costs that relate directly to the specific contract;

- costs that are attributable to contract activity in general and can be allocated to the project;

- such other costs as are specifically chargeable to the Services SETA under the terms of the contract

and

- any expenditure incurred to support discretionary grant projects shall be charged to the discretionary

grants to the extent that they can be attributed to a particular project.

Such costs are allocated using methods that are systematic and rational and are applied consistently to

all costs having similar characteristics.

Project costs are recognised as expenses in the period in which they are incurred and approved. A

receivable is recognised net of a provision for irrecoverable amounts for incentive and other payments

made to the extent of expenses not yet incurred in terms of the contract.

At the end of the financial period any unspent or uncommitted funds must be transferred to the National

Skills Fund (NSF) with an allowance of 5% of the uncommitted funds that will be carried over to the

next financial year, except where a request to carry forward the uncommitted funds has been lodged as

per the Grant Regulations requirements. The unspent funds are determined by taking the discretionary

reserves as per the Statement of Financial Position at the end of the financial period under review less

the commitments for training of learners in programmes funded from discretionary funds.

Administrative expenditure

The funding for administrative expenditure is derived from 10.5% of the total levies paid by the employers.

Administration expenses consist of the operational expenditure incurred by the Services SETA in delivering

its mandate.



Accounting Policies

1.5 Budget information

The approved budget covers the fiscal period from 01/04/2014 to 31/03/2015.

The financial statements and the budget are on the same basis of accounting therefore a comparison

with the budgeted amounts for the reporting period have been included in the Statement of comparison

of budget and actual amounts.

There are no entity or timing differences on the budget to actual information.

1.6 Related parties

Transactions are disclosed as related party transactions where the Services SETA has in the normal course

of its operations, entered into transactions with entities related to the Department of Higher Education

and Training(DHET), payments to members of the Accounting Authority and key management. Disclosure

is made of any transactions with close family members of related parties as well as any transactions not

at arm’s length and not in the ordinary course of business.

In addition, inter-seta transactions are disclosed as related party transactions due to employers moving

from one SETA to another.

1.7 Financial instruments

The effective interest method is a method of calculating the amortised cost of a financial asset or a

financial liability (or group of financial assets or financial liabilities) and of allocating the interest income

or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts

estimated future cash payments or receipts through the expected life of the financial instrument or,

when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.

When calculating the effective interest rate, an Services SETA shall estimate cash flows considering all

contractual terms of the financial instrument (for example, prepayment, call and similar options) but

shall not consider future credit losses. The calculation includes all fees and points paid or received

between parties to the contract that are an integral part of the effective interest rate (see the

Standard of GRAP on Revenue from Exchange Transactions), transaction costs, and all other premiums

or discounts. There is a presumption that the cash flows and the expected life of a group of similar

financial instruments can be estimated reliably. However, in those rare cases when it is not possible to

reliably estimate the cash flows or the expected life of a financial instrument (or group of financial

instruments), the Services SETA shall use the contractual cash flows over the full contractual term

of the financial instrument (or group of financial instruments).

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable

willing parties in an arm’s length transaction.

100


Accounting Policies

1.7 Financial instruments (continued)

A financial asset is cash, residual interest of another entity, a contractual right to receive cash or another

financial asset from another entity exchange financial assets or financial liabilities with another entity

under conditions that are potentially favourable to the Services SETA.

A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset

to another entity or exchange financial assets or financial liabilities under conditions that are potentially

unfavourable to the Services SETA.

Classification

The Services SETA has the following types of financial assets (classes and category) as reflected on

the face of the statement of financial position or in the notes thereto:

Class Category

Receivables from non-exchange transactions Financial assets measured at initial recognition

at fair value, and are subsequently measured at

amortised cost using the effective interest rate

method.

Receivables from exchange transactions Financial assets measured at initial recognition

at fair value, and are subsequently measured at

amortised cost using the effective interest rate

method.

Cash and cash equivalents Financial assets which comprise of cash on hand

and demand deposits, and other short-term highly

liquid investments that are readily convertible to

a known amount of cash and are subject to an

insignificant risk of changes in value. These are

initially and subsequently recorded at fair value.

The Services SETA has the following types of financial liabilities (classes and category) as

reflected on the face of the statement of financial position or in the notes thereto:



Accounting Policies

Class Category

Provisions Financial liabilities are initially measured at

fair value, and are subsequently measured at

amortised cost.

Payables from exchange transactions Financial liabilities are initially measured at

fair value, and are subsequently measured at

amortised cost.

Payables from non-exchange transactions Financial liabilities are initially measured at fair value,

and are subsequently measured at amortised cost.

1.8 Leases

Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor

are classified

as operating leases. Payments made under operating leases are charged to the statement of financial

performance based on the straight-line method. When an operating lease is terminated before the lease

period has expired, any payment required to be made to the lessor by way of penalty is recognised as an

expense in the period in which termination take place. The Services SETA does not hold any finance leases.

1.9 Inventories

Inventory consist of assets in the form of materials or supplies to be consumed or distributed in the

rendering of services and is recognised as an asset if it is probable that future economic benefits or service

potential associated with the item will flow to the entity and they can be measured reliably.

Initial recognition

Inventory,which comprises of consumables and stationery on hand, is initially measured at cost except

where it is acquired through a non-exchange transaction, then its costs is stated at fair value as at the date

of acquisition.

Subsequent Measurement

When inventories are exchanged or distributed, the carrying amount of those inventories are recognised

as an expense when the goods are distributed, or related service is rendered.

The cost of inventories is assigned using the first-in, first-out (FIFO) formula. The same cost formula is used

for all inventories having a similar nature and use to the Services SETA.

102


Accounting Policies

1.10 Reserves

Reserves are sub-classified in the statement of financial position between the following funds and reserves:

- Administration reserve;

- Employer grant reserve;

- Discretionary reserve;

- Revaluation reserve; and

This sub-classification is made based on the restrictions placed on the distribution of monies received in

accordance with the Regulations issued in terms of the Skills Development Act, 1998 (Act No. 97 of 1998).

Member employer company levy payments are set aside in terms of the Skills Development Act and

the regulations issued in terms of the Act, as per table below Interest and penalties received from South

African Revenue Services (SARS) as well as interest received on investments are utilised for discretionary

grants and projects. Other income received are utilised in accordance with the original source of the

income.

The net surplus/deficit is allocated to the administration reserve and the discretionary fund reserve

in terms of the Grant Regulations based on the above.The administration reserve comprises of the

future depreciation of all administration property, plant and equipment plus the 5% of uncommitted

discretionary grant funds at the end of the year.

Surplus funds are moved to the discretionary fund reserve from the administration reserve based on

unspent funds at year-end and from the mandatory grant based on unclaimed grants after the prescribed

time-frames have elapsed.

2015 2014

Administration costs 10.50% 10.50%

Mandatory Grants 20.00% 20.00%

Discretionary Grants 49.50% 49.50%

Received by the Seta 80.00% 80.00%

Contribution to the National Skills Fund 20.00% 20.00%

100.00% 100.00%



Accounting Policies

1.11 Retirement benefit costs

Defined contribution plans

The Services SETA provides for retirement benefits for all its permanent employees through a defined

contribution scheme that is subject to the Pension Funds Act, 1956 as amended. Contributions are at a

rate of 15% of pensionable emoluments of which members contribute 7.5%.

The Services SETA’s contribution to the defined contribution plans is charged to the Statement of Financial

Performance in the year to which they relate and there is no further liability for the Services SETA.

1.12 Provisions, accruals and contingencies

Provisions are recognised when the Services SETA has a present legal or constructive obligation as

a result of past events, and it is probable that this will result in an outflow of economic benefits that can

be estimated reliably.

Provision for levies exempt companies

Exempt companies provision includes employers who continued paying skills development levies even

though they are exempt in terms of Skills Development Act.

Provision for grants

A provision is recognised for mandatory grant payments due once the specific criteria set out in the

regulations to the Skills Development Act, 97 of 1998 has been complied with by member companies

and it is probable that the Services SETA will approve the payment. The measurement of the obligation

involves an estimate, based on the established pattern of past practice of approval for each type of grant.

Provisions are not made for projects approved at year-end, unless the service in terms of the contract

has been delivered or the contract is of an onerous nature. Where a project has been approved and

contracted, it is disclosed as commitments in the notes to the financial statements.

Accruals

Accruals refer to the recording of transactions when they occur and recognised in the financial statements

in the periods to which they relate.

Accrual for employee entitlement

The cost of other employee benefits is recognised during the period in which the employee renders the

related service. Employee entitlements are recognised when they accrue to employees. An accrual is

made for the estimated liability as a result of services rendered by employees up to the last day of the

financial year. Leave accruals are included under payables from exchange transactions in the statement

of financial position based on the current salary rates and latest approved increases.

104


Accounting Policies

1.12 Provisions, accruals and contingencies (continued)

Also included under payables from exchange transactions are trade payables.

An accrual for mandatory grants payable is recognised under payables from non-exchange transactions.

Contingent assets and contingent liabilities

A contingent liability is a possible obligation that arises from past events, and whose existence will be

confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly

in the control of the Services SETA.

A contingent asset is a possible asset that arises from past events, and whose existence will be

confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly

in the control of the Services SETA.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 24.

1.13 Revenue recognition

Revenue comprises gross inflows of economic benefits or service potential received and receivable by

the Services SETA, which represents an increase in net assets.

Control of an asset arises when the Services SETA can use or otherwise benefit from the asset in pursuit

of its objectives and can exclude or otherwise regulate the access of others to that benefit.

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities

extinguished and directly gives approximately equal value (primarily in the form of cash, goods, services,

or use of assets) to another entity in exchange. Exchange revenue is mostly derived from interest earned.

Interest earned is recognised on a time proportionate basis that takes into account the effective yield on

the interest investment.

Non-exchange transactions are transactions that are not exchange transactions.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between

knowledgeable, willing parties in an arm’s length transaction.

Inter-SETA Transfers

Revenue is adjusted for transfers of employers between SETAs that arise due to incorrect allocation

to a SETA on registration for skills development levy or changes to their business that result in a

need to change SETAs. Such adjustments are disclosed separately as inter-seta transfers. The amount

of the inter-seta transfers is calculated according to the most recent Standard Operating Procedure

as issued by the Department of Higher Education and Training (DHET).



Accounting Policies

Skills development levy

In terms of section 3(1) and 3(4) of the Skills Development Levies (SDL) Act, 1999 (Act no. 9 of 1999),

registered member companies pay a skills development levy of 1% of the total payroll cost to SARS, who

collects the levies on behalf of the DHET.

Skills development levy income is recognised when it is probable that future economic benefits will flow to

the Services SETA and these benefits can be measured reliably. This occurs when the DHET either makes

an allocation or payment to Services SETA, whichever occurs first. SDL income is measured at the fair

value of the consideration received or receivable.

Conditional Grants and receipts

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent

that the Services SETA has complied with any of the conditions embodied in the agreement. To the extent

that the conditions have not been met, a liability is recognised.

Interest and penalties

Interest and penalties are economic benefits or service potential received or receivable by Services SETA,

as determined by legislation, as a consequence of the breach of laws or regulations and is recognised on

the accrual basis.

Voluntary contributions

Voluntary contributions received from public service employers in the national and provincial spheres

of government are recognised on the cash basis. These funds may be used to fund the Services SETA

administration costs. The Services SETA has adopted that these funds should be used solely for the

benefit of service industries in the form of discretionary projects.

1.14 Investment income

Interest income is accrued on a time proportion basis, taking into account the principal outstanding

and the effective interest rate over the period to maturity.

1.15 Comparative figures

Where necessary, comparative figures have been reclassified to conform to changes in presentation in

the current year.

1.16 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure means expenditure which was made in vain and would have been

avoided had reasonable care been exercised.

106


Accounting Policies

1.16 Fruitless and wasteful expenditure

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the

Statement of Financial Performance in the year that the expenditure was incurred. The expenditure

is classified in accordance with the nature of the expense, and where recovered, it is subsequently

accounted for as revenue in the Statement of Financial Performance.

1.17 Irregular expenditure

Irregular expenditure that was incurred and identified during the current financial year and which was

condoned before year-end and/or before finalisation of the financial statements, must also be recorded

appropriately in the irregular expenditure register.

Irregular expenditure that was incurred and identified during the current financial year and for which

condonement by the Accounting Authority is obtained at year end, must be recorded in the irregular

expenditure register.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the

following financial year, the register and the disclosure note to the financial statements must be updated

with the amount condoned.

Irregular expenditure that was incurred and identified during the current financial year and which was

not condoned by the National Treasury or the relevant authority must be recorded appropriately in the

irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt

account must be created if such a person is liable in law.

Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is

not possible, the accounting officer or accounting authority may write-off the amount as debt impairment

and disclose such in the relevant note to the financial statements. The irregular expenditure register must

also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable

in law, the expenditure related thereto must remain against the relevant programme/expenditure item,

be disclosed as such in the note to the financial statements and updated accordingly in the irregular

expenditure register.

1.18 Subsequent events

Subsequent events are all events that occur between the reporting date (31 July ) and the date on

which the financial statements are authorised for tabling in parliament.

Adjusting events are all the events that confirm the financial performance and position of the SETA

at year-end and if material the financial statements are adjusted accordingly.

Non-adjusting events which take place after the reporting date are not recognised in the financial

statements.



Notes to the Financial Statements

2. New standards and interpretations

2.1 New accounting Pronouncements:

The Services SETA has not applied the following standards and interpretations, as are not applicable to

it and or the effective dates are not yet effective and or the effective dates have not been Gazettted by

the Minister, except for GRAP 20 which was adopted earlier Standard/ Interpretation, Effective Date and

Expected Impact GRAP18: Segment Reporting(1 April 2015) The standard provides guidance on accounting

for and the determination of reportable segments and will require additional disclosure.

GRAP 20: Related party disclosure(Early adopted)

The standard provides guidance on related party disclosures to ensure that an entity’s financial

statements contain the disclosure necessary to draw attention to the possibility that its financial

position and surplus or deficit may have been impacted by the existence of connected parties and

by transactions and outstanding balances with such parties. The standard will not have an impact on

Services SETA as the standard was early adopted.

GRAP 105: Transfers of functions between entities under common control(1 April 2015)

The purpose of the standard is to establish accounting principles for the acquirer and transferor in a

transfer of functions between entities under common control. It is not anticipated that the standard will

have an impact on the Services SETA.

GRAP 32: Service concession arrangements: Grantor(Not yet effective)

The purpose is to prescribe the accounting for service concession arrangements by the Grantor.

GRAP 106: Transfers of functions between entities not under common control (1 April 2015)

The purpose of the standard is to establish accounting principles for the acquirer and transferor in a

transfer of functions between entities under common control. It is not anticipated that the standard will

have an impact on the Services SETA.

GRAP 107: Mergers (1 April 2015)

The objective is to provide accounting principles guidance for the merged entities.

3. Inventories

2015 2014

R ‘000 R ‘000

Inventory consists mainly of consumable stores and is valued at replacement cost.

Consumable stores 249 373

108



4. Receivables from exchange transactions

2015R’000

2014R’000

Employee costs receivables 39 51

Prepayments 239 402

National Skills Fund Receivable - -

Accrued investment income 5,764 3,880

Other receivables 18 6

6,060 4,338

Previously stated figure for FY2013/14 R9,345 million

Refer to note 28 for further details.

Reconciliation of employee costs receivables

Opening balance 51 -

Staff costs receivables 441 51

Provision for bad debt write-off (424) -

Recovery (29) -

39 51

5. Receivables from non-exchange transactions

Mandatory Grants receivable: Overpayments to employers 2,996 2,839

National Skills Fund: Uncommitted Funds - -

National Skills Fund Receivable: Artisans Project - 4,974

Discretionary Grants receivable: Overpayments 532 -

Mandatory Grants receivable: Legal Process 385 385

3,913 8,198

5.1 Receivables from non-exchange transactions

Mandatory grants receivables

Mandatory grants receivable arises as a result of SARS adjustments subsequent to the Services SETA

having paid-out the grant. The receivable is set-off against future mandatory grants payable by the

Services SETA to the employer concerned.




Mandatory grants receivables: Overpayment to employers

2015R’000

2014R’000

Mandatory grants receivable 3,789 -

Provision for bad debts (793) -

2,996 -

Mandatory grants receivables: Legal Process

During the 2013/14 financial year there was a fraudulent submission of supporting documentation which

resulted in a pay out of R385 thousand of mandatory grants. Legal proceedings are currently underway.

National Skills Fund Receivable: Uncommitted funds

During the current financial year a directive was received from the Executive Authority requiring the

Services SETA to make an additional payment as per the new grant regulations. The foregoing, coupled

with the restatement of the prior year’s committment, resulted in a receivable of R9,269 million. There

is uncertainty on the recoverability of the receivable based on prior years experience. A provision has

therefore been raised.

2015R’000

2014R’000

Uncommitted funds receivable

Payments made to date - 1,577,028

Recalculated uncommitted funds - (1,567,759)

Overpayment - 9,269

Provision for doubtful debts - (9,269)

- -

Previously stated figure for FY2013/14: R2,839 million

Refer to note 28 for further details

110



6. Cash and cash equivalents

2015R’000

2014R’000

Cash and cash equivalents consist of:

Cash on hand 10 12

Bank balances 584,300 819,180

Short-term investments 1,213,503 1,478,480

1,797,813 2,297,672

As required in Treasury Regulations 31.2, the Services SETA holds bank accounts with financial

institutions approved by National Treasury. The Skills Development Act Regulations states that the

Services SETA may, if not otherwise specified by the Public Finance Management Act, invest the

moneys in accordance with the investment policy approved by the Accounting Authority, the short

term deposits are invested in line with the Investment Policy.



.Notes to the Financial Statements

7. Property, plant and equipment

2015 2014

Cost / Valuation

Accumulated depreciation

and accumulated impairment

Carrying value

Cost / Valuation

Accumulated depreciation

and accumulated impairment

Carrying value

Land 15,850 - 15,850 13,500 - 13,500

Buildings 33,600 - 33,600 31,700 - 31,700

Building machinery 2,358 (1,238) 1,120 1,989 (818) 1,171

Furniture and fixtures

1,282 (767) 515 1,549 (870) 679

Motor vehicles 199 (111) 88 1,013 (821) 192

Office equipment 2,114 (1,637) 477 3,539 (2,883) 656

Computer equipment

6,502 (4,104) 2,398 9,479 (5,788) 3,691

Computer network 3,760 (2,639) 1,121 5,245 (3,680) 1,565

Total 65,665 (10,496) 55,169 68,014 (14,860) 53,154

Reconciliation of property, plant and equipment - 2015

Opening balance

Additions Disposals Revaluations Depreciation Impairment loss

Total

Land 13,500 - - 2,350 - - 15,850

Buildings 31,700 - - 2,100 - (200) 33,600

Building machinery 1,171 369 - - (420) - 1,120

Furniture and fixtures

679 73 (39) - (198) - 515

Motor vehicles 192 - - - (103) - 89

Office equipment 657 131 (30) - (281) - 477

Computer equipment

3,690 253 (437) - (1,108) - 2,398

Computer network 1,565 172 (155) - (462) - 1,120

53,154 998 (661) 4,450 (2,572) (200) 55,169

112



7. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - 2014

Opening Balance

Additions Disposals Depreciation Total

Land 13,500 - - - 13,500

Buildings 31,700 - - - 31,700

Building Machinery 1,057 467 - (353) 1,171

Furniture and fixtures 530 377 (2) (226) 679

Motor vehicles 305 - - (113) 192

Office equipment 834 175 - (352) 657

Computer equipment 3138 1,686 (29) (1,105) 3,690

Computer network 628 1,331 - (394) 1,565

51,692 4,036 (31) (2,543) 53,154

Useful lives

The average estimated useful lives of items of property, plant and equipment have been assessed as follows:

Item Average useful life

Building 20 years

Land -

Furniture and fixtures 5 years

Motor vehicles 5 Years

Office equipment 5 Years

Computer equipment 5 years

Computer network 5 years

Revaluations

Land and buildings are revalued by an independent valuer every 3 years.

The effective date of the revaluations was 31 March 2015. Revaluations were performed by independent valuer,

R.H. Roper,(B.Com. FRICS MIV(SA)) of the Property Partnership CC, R. Grobler (BCom NDPV MSAIV) of Millsfitchet East

Coast CC.

The valuation was performed using the Income Capitalisation Method which involves converting the expected

income for the first year into value using the capitalisation rate. The assumptions were based on current market

conditions. The basis of calculation was previously based on the actual bulk area of the building and is now based on

the permissible bulk area.




2015R’000

2014R’000

7. Property, plant and equipment (continued)

Details of properties(R’000)

The carrying values of the land and buildings under the historical cost model would have been as

follows, had the revaluation not done:

Land 18,997 18,997

Buildings 17,820 17,820

36,817 36,817

Fully depreciated assets with zero carrying value still in use.

The following assets have been fully depreciated and have been assigned R1 carrying values and are still use

Property Plant and Equipment Cost Cost

Computer equipment 4,004 3,502

Computer networks 3,467 2,296

Office furniture 608 2,108

Vehicles 448 537

Office Equipment 2,259 448

10,786 8,891

114


Notes to the Financial Statements8. Intangible assets

2015 2014

Cost / Valuation

Accumulated amortisation

and accumulated

impairment

Carrying value

Cost / Valuation

Accumulated amortisation

and accumulated

impairment

Carrying value

Computer software 1,695 (980) 715 1,672 (732) 940

Reconciliation of intangible assets - 2015

Opening balance Additions Amortisation Total

Computer software 940 23 (248) 715

Reconciliation of intangible assets - 2014

Opening balance Additions Amortisation Total

Computer software 675 478 (213) 940

Useful life

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values. The

useful life of computer software is an average of 5 years.

Item Useful life

Computer Software 5 years

Fully depreciated assets with zero carrying value still in use

The following assets have been fully depreciated and have been assigned R1 carrying values and are still in use:

Intangible Assets Cost Cost

Computer Software 453 425

9. Deposits

2015R’000

2014R’000

Long term deposits for lease and Municipal deposits

Bloemfontein - 58

Cape Town - 203

Durban - 2

East London - 73

Kimberley - 45

Johannesburg - 136

Nelspruit - 20

Port Elizabeth 37 44

Polokwane 40 40

77 621




2015R’000

2014R’000

9. Deposits (continued)

Short term deposits for lease and Municipal depositsBloemfontein 58 -

Cape Town 201 -

Durban 2 -

East London 73 -

Kimberley 45 -

Johannesburg 136 -

Nelspruit 22 -

537 -

10. Payables from exchange transaction

Trade payables 26,650 15,904

Accrued employee costs 1,474 7,102

Accrued leave pay 4,984 4,400

Accrued expenses - Administration expense 7,685 4,391

Operating lease payables 489 488

41,282 32,285

11. Payables from non-exchange transactions

NSF uncommitted funds liability - 1,567,759

Accrued Expenses: Discretionary Grants 27,611 20,821

Trade Payables: Discretionary grants 9,662 10,085

Mandatory grants payables 250,873 240,171

Inter-SETA payable 479 943

288,625 1,839,779

Previously stated figure for FY2014: R452.270 millionRefer to note 28 for further details

NSF uncommitted funds liability

In terms of the New Grant Regulations a SETA must have committed or spent atleast 95% of discretionary funds

available to it by the 31st March of each year and a maximum of 5% of uncommitted funds may be carried over to

the next financial year. The remaining surplus of discretionary funds must be paid by the SETA to the National Skills

Fund (NSF). The funds to be transferred are determined as per calculation below. A negative outcome indicates that

the SETA does not have to payback any funds. The prior period errors do not have an impact on the NSF uncommited

liability.

Discretionary grant reserves 1,365,388 1,939,144

Less: Committments (1,836,115) (274,428)

Uncommitted/(Overcommitted) funds (470,727) 1,664,716

95% thereof - 1,567,759

Refer to note 5 for further details.

116


Notes to the Financial Statements12. Provisions

Reconciliation of provisions - 2015 R’000

OpeningBalance

Additions Utilised duringthe year/

Change inestimate

Total

Exempt employers 58,268 10,266 (13,036) 55,498

Discretionary grant 14,183 16,502 (2,802) 27,883

Payroll/Administration provision 1,506 30,368 (1,506) 30,368

73,957 57,136 (17,344) 113,749

Reconciliation of provisions - 2014 R’000

OpeningBalance

Additions Utilised duringthe year/

Change in estimate

Total

Exempt employers 43,725 11,122 3,421 58,268

Discretionary Grants - 14,183 - 14,183

Payroll/Administration provision - 1,506 - 1,506

43,725 26,811 3,421 73,957

Previously stated figure FY2013/14 : R72,451 million

Refer to note 28 for further details

Provision for exempt levy employers

This provision is for employers who, even though are not obliged to pay the skills development levy

because their payroll is less than R500,000, amongst others, still contribute towards the SDL. The provision

covers contributions made over a period of five years. Any exempt contributions older than five years are swept to

discretionary reserves.

Provision for discretionary grants

This provision is as a result of the communique that requested training providers to submit invoices that they

believe are due and payable to them. The Services SETA is still awaiting additional supporting documentation

for the submitted invoices and or external moderation on the training.

Provision for Payroll/Administration costs

The Accounting Authority introduced a performance management system in the current financial year and made R30

million available for high performing employees.

A provision has been made for the assessment from the Commissioner of the Compensation of Occupational

Injuries and Diseases for R 368 thousand.




13. Revaluation reserve

Reserve on revaluation of property, plant and equipment.

Opening balance 11,075 11,075

Revaluation during the year 4,450 -

Devaluation during the year (154) -

Closing balance 15,371 11,075

The total devaluation for the KwaZulu Natal Provincial office amounted to R200 thousand and R46 thousand

thereof was written-off in the Statement of Financial Performance. The R154 thousand was a reversal of previous

revaluation.

Revaluation and devaluation of land and buildings per note 7

14. Accumulated surplus

Allocation of the surplus for the year to reserves - 2015

Administration Reserve

Employer grant

reserve

Discretionary grant reserve

Total per theStatement

of Financial Performance

Skills development levy income

- Administration levy income 182,784 - - 182,784

- Grant levy income - 359,677 - 359,677

- Discretionary levy income - - 852,093 852,093

Penalties and interest - - 39,266 39,266

Investment income - - 136,846 136,846

Other income 33 - - 33

Total income 182,817 359,677 1,028,205 1,570,699

Administration expenses (166,593) - - (166,593)

Employer grant expenses - (133,151) - (133,151)

Project expenses - - (273,648) (273,648)

Total expenses (166,593) (133,151) (273,648) (573,392)

Net surplus allocated 16,223 226,526 754,557 997,306

Reserves movement Administrationreserve

Employer reserve

Discretionary grant reserve

Revaluation reserve

Total

Opening balance 40,505 1,262 366,433 11,075 419,275

Net Revaluation for the year - - - 4,296 4,296

Surplus for the year 16,223 226,526 754,557 - 997,306

Reallocation of surplus for the year (16,722) (227,677) 244,399 - -

40,006 111 1,365,389 15,371 1,420,876

118



14. Accumulated surplus (continued)

AdministrationReserves

Employergrant

reserves

Discretionarygrant reserves

Revaluationreserve

Total

Skills development levy income - - - - -

- Administration levy income 158,557 - - - 158,557

- Grant levy income - 403,547 - - 403,547

- Discretionary levy - - 659,059 - 659,059

Penalties and interest - - 26,785 - 26,785

Investment income - - 95,807 - 95,807

Other income 14 - 18 - 32

Total income 158,571 403,547 781,669 - 1,343,787

Administration expenses (176,633) - - - (176,633)

Employer grant - (156,273) - - (156,273)

Project expenses - - (234,786) - (234,786)

NSF uncommitted funds - - (1,567,759) - (1,567,759)

Special project expenses - - (311,478) - (311,478)

Total expenses (176,633) (156,273) (2,114,023) - (2,446,929)

Net surplus/(deficit) allocated (18,062) 247,274 (1,332,354) - (1,103,142)

AdministrationReserves

Employergrant

reserves

Discretionarygrant reserves

Revaluationreserve

Total

Previously reported opening balance 38,619 1,814 1,470,958 11,075 1,522,466

Prior year error Note 28 (50) - - - (50)

Reallocation of funds to reserve 50 - (50) - -

Restated Opening balance 38,619 1,814 1,470,908 11,075 1,522,416

Previously reported surplus (18,062) 252,226 50,027 - 284,191

Prior year error Note 28 - (4,952) (1,382,380) - (1,387,332)

Reallocation of funds to reserves 19,948 (247,826) 227,878 - -

Net surplus/(deficit) allocated 40,505 1,262 366,433 11,075 419,275

15. Other income

Recoveries 33 32

Recoveries include pay-outs received from insurance company for assets that were damaged during the current year.

16. Investment revenue

Interest revenue

2015R’000

2014R’000

Interest 136,846 95,807




17. Skills Development Levy

2015R’000

2014R’000

Skills Development Levy: Income 1,394,554 1,221,163

Skills Development Levy: Interest and Penalties 39,266 26,785

1,433,820 1,247,948

Skills Development Levy: Penalties and interest

Levy Penalties received 23,427 14,740

Levy Interest received 15,839 12,045

39,266 26,785

Skills Development Levy: Income

Levy income: Administration 182,424 151,326

Inter-seta transfers-in 170 5

Inter-seta transfers-out (82) (52)

Levies relating to SARS error - 9,165

Levies contributed by exempt employers 273 (1,887)

182,785 158,557

Levy income:Employer Grants 353,761 393,278



Levies relating to SARS error - 15,276

Levies contributed by exempt employers 6,147 (4,918)

359,678 403,547

Levy income:Discretionary Grants 854,589 666,315



Levies contributed by exempt employers (3,650) (7,737)

Voluntary Contributions 944 700

852,093 659,059

1,394,556 1,221,163

120



2015R’000

2014R’000

18. Administration expenses

Advertising 2,077 5,887

Auditors remuneration 4,131 4,931

Bank charges 150 123

Consulting and professional fees 36,699 13,118

Rentals 6,450 136

Fines and penalties 144 217

Insurance 1,426 1,260

Stakeholders participation 905 639

IT expenses 13,284 17,567

Motor vehicle expenses 274 234

Printing and stationery 2,445 1,794

Security 2,031 1,351

Staff welfare 365 360

Communication costs 1,647 1,419

Relocation costs 4 14

Training and recruitment 1,129 4,607

Subsistence and Travel - Local 5,061 12,440

Travel - overseas - 149

Minor assets 212 1,030

Electricity and water 2,831 2,476

Minor assets and consumables expensed 15 11

Repairs and maintenance 3,845 2,659

Quality Council for Trades and Occupations fee 0.5% 3,299 1,894

Accounting Authority and Audit Committee costs 3,208 2,135

Depreciation, amortisation and impairment 2,808 2,594

Employee Costs Refer to Note 19 71,535 97,582

165,975 176,627

19. Employee related costs

Salaries and wages 74,695 74,160

Bonus 34,591 1,506

Medical aid contributions 5,068 4,886

Compensation for Occupational Injuries and Diseases 743 -

Leave pay provision charge 3,612 4,011

Pension contributions - Defined contribution plan 14,117 13,019

Transfer to project expenses (61,716) -

Provision for bad debts 424 -

71,535 97,582

Average number of employees 219 237



Notes to the Financial StatementsThe total labour costs for the period amounted to R132.8 million of which R61.7million is for employees that worked on

discretionary grants related projects.

A provision was raised for staff-related receivables for R424 thousand.

Remuneration of Executive Management2015R’000

2014R’000

Annual Remuneration 3,884 7,200

Contribution to medical, pension and UIF 509 1,379

Compensation for loss of office 2,833 1,200

Leave payout 237 -

Travel and subsistence allowance 18 67

Bonus awards 283 532

7,764 10,378

20. Transfer to Public Educational Institutions

National Student Financial Assistance Scheme - 148,692

National Skills Fund - 162,786

- 311,478

21. Employer grants and project expenses

Mandatory grant 132,935 156,274

Discretionary grant 264,596 234,783

Total Grants 397,531 391,057

Previously stated figure for FY2014: R386.103 millionRefer to note 28 for further details.

Discretionary grant expenditure consist of:Direct project costs

125,959 201,586

Direct administration costs 138,637 33,197

Total Grants 264,596 234,783

22. Auditors’ remuneration

Internal Audit Fees 1,340 1,949

External Audit Fees 2,791 2,981

4,131 4,930

23. Cash (used in) generated from operations

Surplus (deficit)Adjustments for:Depreciation and amortisation

997,306

2,821

(1,103,142)

2,751

Loss on disposal of property, plant and equipment 618 11

Increase in provisionsChanges in working capital:Increase/(Decrease) in inventory

39,793

124

30,232

(59)

(Increase)/Decrease in receivables from exchange transactions (1,721) (2,071)

(Increase)/Decrease in receivables from non-exchange transactions 4,284 42,367

(Decrease)/Increase in payables from exchange transactions 8,997 11,907

Increase/(Decrease) in payable from non-exchange transaction (1,551,093) 1,508,690

(498,871) 490,686

122



24. Commitments 2015R’000

2014R’000

24.1 Discretionary reserves

Already contracted for but not provided for

• Discretionary expenditure 1,836,115 296,595

2015 - R’000 Opening balance

Approved by Accounting

Authority

Ammendment Utilised Total ommitments

Donor :Special project 269 - (469) 200 -

Partnership & skills promotion 2,080 3,897 (569) (2,350) 3,058

Bursary support 101,910 87,715 (53,172) (43,091) 93,362

Small, medium, micro enterprises co- ordinationSkills Development Centres

51,738

-

18,369

295,000

(22,155)

-

(21,977)

-

25,975

295,000

Learning Programmes 865 - - (865) -

Experiential and Internship Grant 91,084 1,316,752 (32,562) (39,661) 1,335,613

Sector Specialist Capacity Building 1,439 - 23,164 (9,189) 15,414

Rural Development 45,302 36,807 (28,851) (15,746) 37,512

HET Sector Agreement - 30,000 - - 30,000

Disability Grant 1,908 - (1,166) (742) -

QCTO Support - 396 81 (296) 181

296,595 1,788,936 (115,699) (133,717) 1,836,115

2014 - R’000 Restated Opening balance

Approved by Accounting

Authority

Ammendment Utilised Total ommitments

Donor: Special project 1,864 - (234) (1,361) 269

FET sector agreement 243 - - (243) -

Constituency capacity building 44 2,217 2,035 (2,216) 2,080

Partnership & skills promotion 321 - (28) (293) -

Bursary support 179,286 4,754 (20,831) (61,298) 101,911

Small, medium, micro enterprises coordination

338 59,843 (338) (8,105) 51,738

Learning Programmes - 3,162 (2,297) - 865

Experiential and Internship Grant 92,577 61,113 (20,052) (42,554) 91,084

Sector Specialist Capacity Building 2,011 4,560 8,848 (13,981) 1,438

Rural Development 3,333 56,269 - (14,300) 45,302

HET Sector Agreement - 5,495 - (5,495) -

Employee Disability Grant - 5,400 - (3,492) 1,908

QCTO Support 996 - - (996) -

NSFAS Bursary Management Scheme - 148,691 - (148,691) -

281,013 351,504 (32,897) (303,025) 296,595

In line with Grant Regulation No. 35940, sub-regulation 6(12), 81% of discretionary grant funding has

been allocated to PIVOTAL programmes




24.2 Operating leases 2015R’000

2014R’000

Minimum lease payments due- within one year

6,272 5,631

- in second to fifth year inclusive 291 6,393

6,563 12,024

Operating lease payments represent rentals payable by the Services SETA for eight of its provincial office

properties and rental of photocopying machines. Property leases are negotiated for an average term of

five years, but limited to the current mandate ending 31 March 2016. The extension of the SETAs license is

determined by the Minister of Higher Education and Training. No contingent rent is payable.

25. Contingent assets and liabilities

25.1 Contigent Liabilities

First time employer registrations

The Skills Development legislation allows an employer, registering for the first time, 6 months to submit

an application for a mandatory grant. At the reporting date it is estimated that, as a result, additional

mandatory grants expenditure of R103 thousand (2013/14: R1,3 million) will be payable. The amount is

contingent on the number of submissions received and approved.

2015 scheme year levies received

At the reporting date levies were received in respect of the 2015 scheme year, for which, the Skills

Development legislation allows an employer until 30 April 2015 to submit an application for a mandatory

grant.

At the reporting date it is estimated, as a result, that additional mandatory grant expenditure of R8 thousand

(2013/14: R23 thousand) will be payable. The amount is contingent on the number of submissions received

and approved.

Surplus Funds as at 31 March 2015

In terms of the Public Finance Management Act (1 of 1999), as ammended, all surplus funds as at

year-end must be forfeited to National Treasury should an application for the retention of surplus

funds be denied. The Services SETA submitted an application for the retention of accumulated funds as

at 31 March 2015 to National Treasury.

124



Contingent liabilities on legal matters

• A claim by Life Long Education and Development for the amount of R8 million, with regards to

the contract that was cancelled.

• Previous employees of the Services SETA have instituted legal cases against Services SETA

resulting in contingent liabilities of R8.4 million.

25.2 Contingent assets

Pending the results of the investigation in respect of the irregular expenditure not condoned and

referred to in Note 30, proceedings have commenced against the employees concerned to recover

an amount of R45.6 million in respect of severance package payments, including legal costs and

interest.

The Services SETA has instituted legal action, currently at the Magistrate court, to recover R85 thousand

from a former employee for undue benefit.

Arbitration has been awarded to Services SETA in a case against Bryanlee for the amount of R376

thouand plus interest. As at the 31 March, there was an application to rescind the award.

The Services SETA has instituted legal action against a service provider for the recovery of R29 thousand.

25.3 Forensic Investigation

The Accounting Authority commissioned a forensic audit into all discretionary grants that were awarded

from 1 April 2007 to 31 March 2014 to gain assurance that the projects were awarded in compliance with

the regulations and that the money was spent as intended. As at March 2015 this audit was not concluded.

26. Related parties

Relationships

Management has identified the following parties as related parties:

Members of the Accounting Authority Refer to members’ report 27

Ultimate controlling department Department of Higher Education

Other department with significant influence National Treasury

Key stakeholder National Skills Fund

National Students Financial Aid Scheme

Significant affiliates Other 20 SETA’s

Defined contribution scheme for employees of entity Momentum Life

Bonitas

Members of key management - Liesel Kostlich - Acting Chief Executive Officer

Andile Nongogo -Chief Financial Officer

Johannes Mouton - Former Chief Executive Officer

Ntombizodwa Ndhlovu - Corporate Services Executive




Related party transactions and balances

Amounts included in receivables: non-exchange transactions regarding related parties

Opening

balance

R’000

Transaction

value

R’000

Closing

balance

R’000

FY2014 National Skills Fund 48,539 (43,565) 4,974

FY2015 National Skills Fund/(Refer to Note 5) 4,974 (4,974) -

Inter-Seta Received 2015

Financial and Accounting Services Sector Education and Training Authority 236

Wholesale and Retail Sector Education and Training Authority 139

Public Service Sector Education and Training Authority 336

711

Inter-Seta Received 2014

Media Information and Communication Technologies Sector Education and

Training Authority

14

Insurance Sector Education and Training Authority 8

Agriculture Sector Education and Training Authority 19

41

Levy Income and penalties and interest 2015

Department of Higher Education and Training 1,430,049

Levy Income and penalties and interest 2014

Department of Higher Education and Training 1,237,699

126



26. Related parties (continued)

Inter-Seta

Payable 2015

Food and Beverages Manufacturing Industry Sector

Education and Training Authority(130) 81 (49)

Media Information and Communication Technologies

Sector Education and Training Authority(254) 222 (32)

Insurance Sector Education and Training Authority (323) 96 (227)

Manufacturing, Engineering and Related Services

Sector Education and Training Authority(92) 62 -

Finance and Accounting Services Sector Education &

Training Authority - (3) (3)

Wholesale and Retail Sector Education and Training

Authority (27) - (27)

Transport Education and Training Authority (6) - (6)

Agricultural Sector Education and Training Authority (84) (24) (108)

Banking Sector and Education and Training Authority (27) - (27)

(943) 464 (479)

Inter-Seta

Payable 2014

Chemical Industries Education and Training Authority (10) 10 -

Food and Beverages Manufacturing Industry Sector

Education and Training Authority(130) - (130)

Media Information and Communication Technologies

Sector Education and Training Authority(222) (32) (254)

Insurance Sector Education and Training Authority (72) (251) (323)

Manufacturing, Engineering and Related Services

Sector Education and Training Authority(92) - (92)

Safety and Security Sector Education & Training

Authority(24) 24 -

Wholesale and Retail Sector Education and Training

Authority(27) - (27)

Transport Education and Training Authority (6) - (6)

Banking Sector Education & Training Authority - (27) (27)

Agricultural Sector Education and Training Authority - (84) (84)

(583) (360) (943)




26. Related parties (continued)

Non-Exchange payable 2015

National Skills Fund (1,567,759) 1,567,759 -

Non-Exchange payable 2014

National Skills Fund - (1,567,759) (1,567,759)

Prior year reserves transfer - 2014 Transaction

National Student Financial Assistance Scheme 148,692

National Skills Fund 162,786

311,478

27. Remuneration

2015R’000

2014R’000

Administrator - Dr. S Moon - 864

The meeting attendance fees for Accounting Authority members serving on the Audit Committee are

included under Other in the Accounting Authority Remuneration table.

Members of the Audit Committee 2015

Au

dit

C

om

mit

tee

fees

Oth

er

Co

mm

itte

e m

eeti

ng

s

Dis

bu

rsem

ents

Tota

lMaboa, J (Chairperson) 62 42 - 104

Ngwenya, S 62 7 - 69

Motlhamme, L 35 - 4 39

Moyo, R 28 - - 28

187 49 4 240

Members of the Audit Committee 2014

Au

dit

C

om

mit

tee

fees

Oth

er

Co

mm

itte

e m

eeti

ng

s

Dis

bu

rsem

ents

Tota

l

Maboa, J (Chairperson) 56 - - 56

Dondur, D (Term ended 31 October 13) 76 48 - 124

Snyman, E (Term ended 31 October 13) 34 1 - 35

Kenosi, R (Ended 31 October 13 44 - - 44

Ndeya, L (Ended 31 March 14) 28 - - 28

Mngoma, S (Ended 31 March 13) 35 - - 35

Mpeluza, B (Ended 31 March 13) 21 - - 21

294 49 - 343

128



27. Remuneration (continued)

Members of the Accounting Authority 2015

Accounting Authority and Exco

RemunerationCommittee

Finance Committee

Governance Other Total

Mhambi, T (Chairperson) 106 - - - 120 226

Grobler, L 150 - 7 14 31 202

Petersen, W 92 15 - - 230 337

Dinwa, W 60 - 8 10 215 293

Moloto, K 25 - 10 - 83 118

Mofokeng, M 88 - - - 204 292

Mantashe, N 65 11 - - 91 167

Sambatha, M 28 - - 1 7 36

Shabangu, T 38 - 5 8 158 209

Snyman, P 66 15 - - 136 217

Roopchand, V 31 - - 7 88 126

Letseli, D 75 7 - 6 282 370

Brown, S 39 2 - 7 94 142

Phala, A 36 2 - 1 98 137

Leigh-Ann Georgiev 20 2 - 1 67 90

919 54 30 55 1,904 2,962

Members of the Accounting Authority 2014

Accounting Authority and Exco

RemunerationCommittee

Finance Committee

Governance Other Total

Mhambi, T 87 - - - 133 220

Grobler, L 32 - 9 12 58 111

Petersen,W 73 11 - - 92 176

Dinwa, W 58 - 9 4 89 160

Moloto, K 36 - 12 - 61 109

Mofokeng, M 67 - - - 95 162

Mantashe, N 57 16 - - 68 141

Sambatha, M 64 - - 6 75 145

Shabangu, T 45 - 12 7 68 132

Snyman, P 35 11 - - 65 111

Roopchand, V 42 - - 7 61 110

LetseLi, D 49 2 - 9 68 128

Brown, S 38 - - 7 78 123

683 40 42 52 1,011 1,828




27. Remuneration (continued)

2015 R’000

Em

olu

men

t

Pen

sio

n,

med

ical

aid

an

d

UIF

Co

mp

ensa

tio

n

for

loss

of

offi

ce

Act

ing

allo

wan

ce

Trav

el a

nd

sub

site

nce

Bo

nu

s

Pay

men

ts

Tota

l

Nongogo A 1,502 171 - - - 115 1,788

Mbelu E *1 938 151 948 - 3 79 2,119

Köstlich L *2 1,026 123 - 237 8 89 1,483

Mouton J *3 311 46 1,885 - 7 - 2,249

Ndhlovu N *4 107 18 - - - - 125

3,884 509 2,833 237 18 283 7,764

2014 R’000

Em

olu

men

t

Pen

sio

n p

aid

or

rece

ivab

le

Co

mp

enst

aio

n

for

loss

of

offi

ce

Trav

el a

nd

sub

site

nce

Bo

nu

s

Pay

men

ts

Tota

l

Bogoshi LM 1,270 167 - 3 109 1,549

Ruiters YL 1,213 181 - 2 106 1,502

Simons C 1,046 163 806 17 104 2,136

Machard DC 1,070 237 - 4 95 1,406

Naidoo SN 79 9 - - - 88

Penfold D - - 394 - - 394

Tengimfene NB 211 58 - 10 - 279

Dhlamini P 184 87 - - - 271

Baatjies D 180 29 - 19 - 228

Mbelu E 945 152 - 9 60 1,166

Mouton J. 1,002 296 - 3 58 1,359

7,200 1,379 1,200 67 532 10,378

*1

*2

*3

*4

Resigned 31 March 2015

Acting CEO from 14 June 2014

Resigned 13 June 2014

Appointed 1 March 2015

130



The following errors relating to the prior period were corrected in the current financial period:

28. Prior period errors

28.1 Commitments

Historically, the Services SETA did not have an adequate contract management system, which resulted in

the commitment register being incomplete. In addition a communique was issued to all Services SETA’s

training providers to confirm the status of their contracts and the response thereto was not satisfactory.

There were also contracts that were entered into without following a proper process and these have been

ratified by the Accounting Authority.

There are contracts, still with contract balances, that expired prior to the previous financial year. The

training providers continued with the training even though the contracts had expired and then submitted

invoices during the financial year under review.

The Project Facilitation department was established to monitor progress on projects which are linked to

contracts and in the process recommend extensions or terminations to the Legal Services department.

The impact on the commitments is as follows:

2014 2013

R’000 R’000

Previously disclosed closing balance 274,428 284,515

Decrease in previously disclosed opening balance (3,500) (1,521)

Increase/(Decrease) in previously disclosed Accounting Authority Approvals 14,794 (1,979)

Decrease in previously disclosed ammendments 8,580 -

Increase in previously disclosed utilised total 2,292 -

Revised closing balance 296,594 281 ,015



Notes to the Financial Statements28. Prior period errors (continued)

28.2 Exchange receivable (NSF receivable)

During the year under review it was realised that the NSF receivable was inadvertently recognised

as an exchange receivable instead of as a non-exchange receivable:


R’000

NSF Exchange receivable

Decrease in NSF Receivable from exchange transactions (R4,974)

Statement of Financial Position

Increase in NSF Receivable from non-exchange transactions R4,974

28.3 Exchange payables (Bonus provision)

During the current year it was discovered that the provision for the bonus was inaccurately

disclosed as an exchange payable instead of as a provision.


R’000

(Increase) in provision for bonus (R1,506)

Statement of Financial Position

Decrease in Exchange payables R1,506

28.4 Mandatory grants payable

In the prior year there were employers which were not included in the approved WSP listings which

resulted in the understatement of the Mandatory Grants payable and expenses. Customarily, companies

first attempt to submit on-line but sometimes there are technical errors which then necessitate manual

submissions. Manual submissions will then be uploaded using the inter-seta transfer’s module. It was

recently discovered that certain companies that submitted manually were not uploaded in the inter-seta

module and as a result were excluded from the payables listing.


R’000

Non-Exchange Payables

(Increase) in mandatory grants payable: non-exchange (R5,129)


Increase in mandatory grants expenditure R5,129

132



28.5 Uncommitted Funds

During the year under review, further clarification was obtained on the intention of the New Grant

Regulations. The clarification indicated that uncommitted funds which are to be transferred to the National

Skills Fund must be based on the discretionary reserves rather than the surplus for the year. The latter

approach was followed in the prior year:

2014

Statement of Financial Position R’000

(Increase) in non-exchange payables (R1,382,380)


Increase in transfers to NSF expense R1,382,380

28.6 Exchange Payables : Accruals

During the year under review it was realised that accruals were understated.

Statement of Financial Position 2013 R’000

Increase in Exchange payables:Accruals (R50)


Increase in Administration costs(IT costs) R50

28.7 Mandatory Grants Receivables

During the year under review it was realised that the reversal of mandatory grants receivables for R175

thousand was erroneously duplicated. In addition, mandatory grants receivables were reclassisfied from

exchange receivables to non-exchange receivables:

Statement of Financial Position 2014 R’000

Increase in mandatory grants receivables (Exchange) R175

Increase in mandatory grants receivables(Non-exchange) R385

Decrease in mandatory grants receivables(Exchange) (R385)


Decrease in mandatory grants expenditure (R175)




28.8 Property, Plant and Equipment reclassification

During the current financial year it was discovered that property plant and equipment categories

were not correctly classified in the previous financial years. The impact in the financial statements is as

follows:

Co

st:

Op

enin

g

bal

ance

(01

Ap

ril 2

014

)

Op

enin

g

Bal

ance

A

ccu

mu

late

d

Dep

reca

tio

n

Ad

dit

ion

s

Dep

reci

atio

n

Acc

um

ula

ted

D

epre

ciat

ion

: C

losi

ng

b

alan

ce

Tota

l

Computer equipment (42) (120) 86 (101) 101 (76)

Computer network 564 (327) 64 163 (163) 301

Furniture and fittings (32) 26 (4) (10) 10 (10)

Office equipment (490) 421 (146) (52) 52 (215)

- - - - - -

29. Risk Management

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the

availability of funding through an adequate amount of committed credit facilities and the ability to close

out market positions. Due to the dynamic nature of the underlying businesses, the Services SETA treasury

maintains flexibility in funding by maintaining availability under committed short-term investments. At

year-end the investment in short-term deposits amounted to R1,213 million.

The Services SETA’s risk to liquidity is a result of the funds available to cover future commitments. The

Services SETA manages liquidity risk through an ongoing review of future commitments.

The table below analyses the Services SETA’s financial liabilities into relevant maturity groupings based

on the remaining period at the statement of financial position to the contractual maturity date. The

amounts disclosed in the table are the contractual undiscounted cash flows.

2015 Carrying

amounts

Contractual

cash flows

6 months or

less

6 - 12

months

More than 1

year

Trade and payables from exchange transactions (41,282) (41,282) (39,656) (233) (1,393)

2014 Carrying

amounts

Contractual

cash flows

6 months or

less

6 - 12

months

More than 1

year

Trade and payables from exchange transactions (32,285) (32,285) (31,206) (38) (1,041)

134



Market Risk

The SETA is exposed to fluctuations in the employment market for example sudden increases in

unemployment and changes in the wage rates which lead to changes in the levy income received

by SETAs. No significant events occurred during the year that the SETA is aware of.

Interest rate risk

The Services SETA manages its interest rate risk by effectively investing Services SETA’s surplus cash

in terms of deposits with different financial institutions according to the SETA’s investment and cash

flow management policy.

Fair value interest rate risk

Year ended 31 March 2015 R’000 Floating rate

Amount

Effective Interest rate

R’000Non-interest

bearing

R’000Total

Receivables from exchange transactions - - 6,060 6,060

Cash and cash equivalents 1,797,813 6.018% - 1,797,813

Payables from exchange transaction - - (41,282) (41,282)

Net financial assets 1,797,813 - (35,222) 1,762,597

Year ended 31 March 2014 R’000 Floating rate

Amount

Effective Interest rate

R’000Non-interest

bearing

R’000Total

Receivables from exchange transactions - - 4,338 4,338

Cash and cash equivalents 2,297,672 5.1% - 2,297,672

Payables from exchange transaction - - (32,285) (32,285)

Net financial assets 2,297,672 - (27,947) 2,269,725

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents and trade debtors. The Services SETA

only deposits cash with major banks with high quality credit standing and limits exposure to any one

counter-party.




The ageing of other receivables from exchange transactions that are not impaired:

2015 Gross 2015 Impairment 2014 Gross

Not past due 6,029 - 4,288

Past due 1 - 30 days - - -

Past due 31 - 120 days - - 24

Past due 120 - 365 days 1 - 26

More than one year 30 - -

6,060 - 4,338

30. Fruitless and wasteful expenditure

2015 2014

SARS Interest and penalties 144 217

SARS Interest and Penalties

Expenditure relating to SARS interest and penalties relate to late payment of pay as you earn for the

April 2014 month due to telephone lines being down resulting in a one day late payment. No criminal

or disciplinary actions were taken as the mishap was not under the control of employees involved. The

amount has been written-off.

31. Irregular expenditure

2015 2014

Opening balance 145,423 90,436

Add: Irregular Expenditure - current year 10,405 63,918

Less: Amounts condoned in current year relating to prior year (42,550) -

Less: Amount condoned (10,405) (8,931)

Closing balance 102,873 145,423

Analysis of closing balance of irregular expenditure

Awaiting condonation 62,050 104,600

Not condoned 40,823 40,823

102,873 145,423

Details of irregular expenditure – current year

ContraventionDisciplinary steps taken/criminal proceedings

Payments made in contravention of Supply Chain Management regulations.

No disciplinary steps taken. Condonation obtained.

10,405 41,897

Payment of audit fees in excess of the regulated fee

No disciplinary steps taken.Condonation from Treasury pending.

- 98

Contravention of Skills Development Grant Regulations.

No disciplinary steps taken.Condonation from Treasury pending.

21,923

10,405 63,918

136



32. Budget differences

Material differences between budget and actual amounts

Skills Development Levy and Penalties and Interest

The levy receipt for the period ended 31 March 2015 was 14% above budget. The variance is attributed to

salary increases in the services sector which were higher than anticipated which led to higher levy income

for the Services SETA.

Income from penalties and interest arise when employers fail to submit their returns as required by

legislation. These amounts typically vary significantly from year to year. At the end of the financial year

the full balance is reallocated into discretionary reserves for utilisation in discretionary projects. Penalties

and Interest showed a favourable variance of 14%.

Investment Income

A favourable variance of 5% against the budget was achieved, mainly as a result of accumulation

of cash and cash equivalents during the year. At the end of the financial year R1,577 million was paid

to the National Skills Fund(NSF) as uncommitted funds for the 2014/13 financial year. This will result in

significantly reduced investment income going forward.

Grants

Project grants showed an adverse variance of 36% compared to the budget. Although the current spend

is not satisfactory, the discretionary grants commitments schedule of the Services SETA has increased

more than four times compared to the previous financial year. It is anticipated that in the new

financial year there will be a significant improvement in spending. The participation of employers in the

mandatory grants, through submission of workplace skills plans timeously, was at 39% compared to the

budgeted claim rate of 65%.

Administration expenses

Administrative costs were slightly underspent by 9.5% in total mainly due to the delays in the commencement

of operations- related projects which include the rebrading of the Services SETA, refurbishment project

and introduction of cost containment measures.

Capital Assets

The underspend of R81 million is due to delays in the commencement of the capital projects which

includes the Space Planning and Financial Information System Projects. The supply chain management

processes for these operational projects were concluded as at 31 March 2015 and the work commenced

in the beginning of the 2015/16 financial year.


SERVICES SETA OFFICE DETAILS

Head OfficeTel: 011 276 960015 Sherborne Road, ParktownJohannesburg

CenturionTel: 012 003 1040Lake Buena Vista Building,Cnr Hendrik Verwoerd Drive & Embankment RoadCenturion

Port ElizabethTel: 041 101 0265Ground Floor Block FSouthern Life Gardens70-2nd AvenueNewton Park, Port Elizabeth

BloemfonteinTel: 051 430 622357 Kellner Street, Suite 5, 6 and 7Westdene Park, Bloemfontein

Cape TownTel: 021 003 0904Unit 1-4 Piccadilly House15 Park Lane Office ParkCentury Way, Century City, Cape Town

DurbanTel: 031 207 176173 Ramsay Avenue, Musgrave, Durban

East LondonTel: 043 726 8156/7Phase 2A, Waverley Office Park, Chiselhurst, East London

NelspruitTel: 013 752 220737 Brown Street, 4th Floor, Mid City Building, Nelspruit

PolokwaneTel: 015 101 02507 Neethling Street, Hampton Court, Bendor Avenue, Polokwane

KimberleyTel: 051 101 089110 Oliver Road, Monument HeightsMontrio Corporate Park, Kimberley

138

NOTES

services seta annual report - national government...annual report 2014/2015. 2 public entity’s...

Documents