annual report 2016/2017 · 2017-11-30 · qcto quality council for trades and occupations qdf...

ANNUAL REPORT2016/2017

Energy and Water Sector Education and Training Authority Annual Report for the 2016/17 Financial Year

TABLE OF CONTENTS

Presentation of the EWSETA Annual Report .........7

Part A: General Information ........................8

EWSETA Information .............................................9Abbreviations and Acronyms ................................9Strategic Overview ................................................11 Vision ................................................................12 Mission .............................................................12 Values ...............................................................12 Strategic Outcome-Orientated Goals ................13Legislative and Other Mandates............................13 Constitutional Mandates ...................................13 Legislative Mandates .........................................13 Sector-SpecificRegulatoryFramework .............14Organisational Structure ........................................15Foreword by the Chairperson, Mr Frans Baleni ....16 Highlights ..........................................................17 StrategicOverview ............................................17 Strategic Relationships ......................................18 Conclusion ........................................................18Overview by the Chief Executive Officer, Mr Errol Gradwell ...................................................19 Financial Analysis ..............................................20 Response to National Imperatives .....................21 PerformanceOverview ......................................21 Plans for the future ............................................23 Appreciation ......................................................23

Part B: Performance Information ...............24

Statement of Responsibility for Performance Information ............................................................25EWSETA Annual Performance Report 2016/17 .....26

Part C: Operations Report ..........................34

Overview by the Chief Operations Office, Mr Ineeleng Molete ................................................35 Operations Landscape ......................................35 Challenges and Achievements ..........................36 PerformanceOverview ......................................37 Provincial Operations ........................................40 SkillsDevelopmentandPlanning .......................40 Quality Assurance and Compliance (QA&C) ......41 Special Projects ................................................45 SkillsDelivery ....................................................46 Project Management .........................................48 OperationsOutlook ...........................................49

Part D: Sectoral Collaboration and Stakeholder Engagement ...........................50

Sectoral Collaboration and Stakeholder Engagement Executive Overview, Ms Tsholofelo Mokotedi (Acting) ...........................51 Achievements and Challenges ..........................52 WaterSectorDepartment .................................56 EnergySectorDepartment ................................58 Wayforward ......................................................59

Part E: Corporate Services .........................60

Corporate Services Executive Overview, Ms Candice Moodley ............................................61 Achievements and Challenges ..........................62 Human Resources ............................................62 Information and Communications Technology

and Facilities Management ................................68 MarketingandCommunication .........................69 Highlights ..........................................................70 Plans into the future ..........................................70 Wayforward ......................................................71

Part F: Governance .....................................72

Corporate Governance .........................................73Board Committees ...............................................73Board Profiles ........................................................74Report of the Audit and Risk Committee ..............80 AuditandRiskMembersandattendance ..........80 ResponsibilitiesoftheAuditand RiskCommittee ................................................81 EffectivenessofInternalcontroland Internal Audit .....................................................82 Monthly and in-year Management Reporting .....82 RiskManagement .............................................82 Evaluation of the Annual Financial Statements and the Report on PredeterminedObjectives .................................82 Unresolved matters ...........................................83

Part G: Financial Information .....................84

Statement of Responsibility ..................................85Report of the Chief Financial Officer, Ms Mpho Mookapele ............................................86 FinancialSkillsandCapacity .............................86 Budget Constraints ...........................................87 RiskManagementandInternalControls ............87 Grants and Levies .............................................87 Policies and Procedures ....................................87 Appreciation ......................................................87Report of the Auditor General ...............................88Accounting Authority’s Report ..............................92Annual Financial Statements .................................95

PART D: Sectoral Colalboration and Stakeholder Engagement EWSETA ANNUAL REPORT 2016/176

PRESENTATION OF THE EWSETA

ANNUAL REPORT

EWSETA ANNUAL REPORT 2016/177

Presentation of the EWSETA Annual Report

PRESENTATION OF THE EWSETA ANNUAL REPORTIn termsofSection65of thePublicFinanceManagementAct, 1 of 1999, I am privileged to present the Energy and Water Sector Education and Training Authority (EWSETA) Annual Report for the period 1 April 2016 to 31 March 2017 to theMinisterofHigherEducationandTraining,DrBladeNzimande.

ThisreportreflectstheoverallperformanceoftheEWSETAagainstitsmandateanditscontribution,inpartnershipwithitsstakeholders,totheskillspipelineinthewaterandenergysector.

The Auditor-General of South Africa has audited the annual financial statements and performance information inthe report. As the EWSETABoard,we have relied on theassurancesgivenbytheEWSETAmanagementandInternalAudit about the integrity and reliability of the performanceinformation. We endorse this Annual Report.

The EWSETA remains committed to working with theDepartmentofHigherEducationandTraininginestablishinga sector skills pipeline that contributes meaningfully togovernments’ economic growth policies and employmentcreation and poverty reduction initiatives.

Mr Frans BaleniAccounting Authority ChairpersonJuly 2017

“We recognise that the future of our country is inextricably linked to our ability to empower our people – particularly our young people – with the skills and knowledge to allow them to participate actively in building and transforming Africa’s most advanced industrial economy. [As a country] with economically important cities, we need plumbers, electricians, motor mechanics and people with all of the other skills required to keep the complex infrastructure, the mines and the factories ticking over.” – Budget speech to the National Council of

Provinces by the Honourable Minister Blade

Nzimande, April 2016.

PART A: General Information EWSETA ANNUAL REPORT 2016/178

PART AGENERAL

INFORMATION


EWSETA INFORMATIONRegistered Name: Energy and Water Sector Education and Training Authority (EWSETA)

Street Address: 2ndand3rdFloors,SentinelHouse,SunnysideOfficePark,32PrincessofWalesTerraceParktown,Johannesburg,2198,SouthAfrica

Postal Address: POBox1273,Houghton2041,Johannesburg

Telephone: +27 (0)11 274 4700

Fax: +27 (0)11 484 8953 / +27 (0)11 484 1078

Email: [email protected]

Website: http://www.ewseta.org.za

RP: RP156/2017

ISBN: 978-0-621-45510-6

External Auditors: Auditor-General of South Africa

Bankers: FirstNationalBank,RandMerchantBank,StandardBank

ABBREVIATIONSANDACRONYMS

AQP Assessment Quality Provider

ATR Annual Training Report

CDC CoegaDevelopmentCorporation

CEO ChiefExecutiveOfficer

CFO ChiefFinancialOfficer

CHIETA Chemical Industries Education & Training Authority

COO ChiefOperatingOfficer

CSE Corporate Services Executive

DG DiscretionaryGrant

DHET DepartmentofHigherEducationandTraining

DoE DepartmentofEnergy

DQP DevelopmentQualityPartner

DWS DepartmentofWaterandSanitation

ETQA Education and Training Quality Assurance

EWSETA Energy and Water Sector Education and Training Authority

FETWATER FrameworkProgrammeforResearch,EducationandTrainingintheWaterSector

HET Higher Education and Training

HETI Higher Education and Training Institute

IDC IndependentDevelopmentCorporation

ITIL InformationTechnologyInfrastructureLibrary

LAN LocalAreaNetwork

LMIS LabourMarketInformationSystem

MERSETA Manufacturing, Engineering and Related Services Sector Education and Training Authority


MoU Memorandum of Understanding

MIS Management Information System

MTEF Medium-TermExpenditureFramework

NDP NationalDevelopmentPlan

NECSA South African Nuclear Energy Corporation

NERSA National Energy Regulator of South Africa

NGP NewGrowthPlan

NIASA Nuclear Industry Association of South Africa

NNR National Nuclear Regulator

NRF National Research Foundation

NSDS NationalSkillsDevelopmentStrategy

OFO OrganisingFrameworkforOccupations

PIVOTAL Professional, Vocational, Technical and Academic Learning

PFMA PublicFinancialManagementAct,1of1999

QAC Quality Assurance and Compliance

QACC Quality Assurance and Compliance Committee

QCTO Quality Council for Trades and Occupations

QDF QualityDevelopmentFacilitator

QMS Quality Management System

SAICE South African Institution of Civil Engineering

SAQA SouthAfricanQualificationsAuthority

SCM Supply Chain Management

SDA SkillsDevelopmentAct,97of1998(asamended)

SDL SkillsDevelopmentLevy

SETA Sector Education and Training Authority

SLA Service Level Agreement

SMME Small, Medium and Micro Enterprises

SSP SectorSkillsPlan

SWOT Strengths,Weaknesses,Opportunities,Threats

TETA Transport Education Training Authority

TR Treasury Regulations

TVET Technical and Vocational Education and Training

WAN WideAreaNetwork

WISA Water Institute of Southern Africa

WSP WorkplaceSkillsPlan

ABBREVIATIONSANDACRONYMS(CONTINUED)


STRATEGIC OVERVIEWTheEnergyandWaterSectorEducationandTrainingAuthority (EWSETA) isoneof the21SETAsestablished in termsofSection9oftheSkillsDevelopmentAct,97of1998,asamended,andreportstotheHonourableMinisterofHigherEducationand Training.

Ourmandateistoanticipate,buildandmanagetheskillsdevelopmentandtrainingneedsoftheenergyandwaterservicessectorthroughstrategicskillsplanningwithinthecontextoftheNationalSkillsDevelopmentStrategy(NSDSIII).

Wedothisby:

• Establishingandregisteringlearningprogrammes• ApprovingWorkplaceSkillsPlans(WSPs)andAnnualTrainingReports(ATRs)• Disbursingmandatorygrants to levy-payingemployers,anddisbursingdiscretionarygrants tostakeholders including

skillsdevelopmentproviders,publiceducationandtraininginstitutions,learners,NGOs,CBOs,cooperativesandworker-initiated programmes

• Monitoringandassuringqualityeducationandtrainingintheenergyandwatersectors• Promoting learnerships, internships, apprenticeships and other learning programmes in the sector• Promotingsustainablesocio-economicdevelopment.

Alignment with the NSDS III ensures that our strategysupports key national development strategies andmacro-economic policies, including the:

• NationalDevelopmentPlan(NDP)• NationalYouthAccord• NewGrowthPlan(NGP)• National Energy Act, 34 of 2008• Industrial Policy Action Plan (IPAP 2)• StrategicFrameworkforWaterServices• Integrated Resource Plan (IRP)• National Water Act, 36 of 1998• Whitepaper on Post School Education and Training• HumanResourceDevelopmentStrategyofSouthAfrica• National Infrastructure Plan, which includes the

Strategic Integrated Projects (SIPs).

Our 2016/17 strategic objectives were to:

• strengtheninstitutionalandgovernancecapabilitiestomeettheskillsdevelopmentneedsoftheenergyandwaterservicessectors

• buildapositiveimageandreputationfortheEWSETA• maintainaneffectiveinformationmanagementsystem• maintainaresearchstrategythat informssectorskills

planning • increase access to occupationally-directed programmes

for employed and unemployed learners• enhance training institutional capacity to meet energy

andwaterindustrysupplyneeds• facilitatetheincreaseinartisanskillscapacitywithinthe

energyandwaterservicessector• raiseawarenessofcareerandvocationalguidance• promote learning and development that addresses

socio-economic inequalities in society.

Energy WaterElectricity Collection,purificationanddistribution

Oil and Gas Wasteandsewageservices

Nuclear Refuse and sanitation services

Renewableenergy

THE SUBSECTORS WE SERVE



VISION Ourvisionistobetherecognised,reputableAuthorityinskillsdevelopmentfacilitationfortheenergyandwaterservices sector.

MISSION Our mission is to:

• Comprehensivelyresearchandgainasoundunderstandingoftheskillsdemandandsupplyforcesinoursector.• Co-ordinate,facilitateandprovidequalityassuranceforsector-relevantskillsdevelopmentprogrammesforour

stakeholders,asalignedwithstatednationalskillsdevelopmentpriorities.• Generate,articulateandexecuteaskillssectorpipelinewithapositive impactonthegovernment’seconomic

growthpolicies,employmentcreationpoliciesandpovertyeradicationstrategies.

VALUES We entrench an organisational culture that is conducive to instilling our values:

• Visionary leadership: Keeping the EWSETA’s vision, mission, mandates and values at the forefront of associated decision-makingandaction.

• Stakeholder orientation: Cultivating strategic stakeholder relationships and ensuring that stakeholderperspectivesarethedrivingforcebehindallvalue-addedorganisationalactivities.

• Continuous learning and research:Activelyidentifyingnewareasfororganisationallearningandpositioning;regularly creating and taking advantage of learning opportunities; using newly-gained knowledge to driveorganisational and personal performance and delivery.

• Driving for results: Setting high goals for personal and group accomplishment; measuring andmonitoringprogresstowardsgoalattainment;meetingorexceedingthosegoalswithtenacity;andderivingsatisfactionfromgoal achievement and continuous improvement.

• Building collaborative working relationships: Developingandusingcollaborativerelationshipstoaccomplishbusinessgoals.

• Quality orientation: Accomplishingobjectivesandtasksholistically;beingawareofallactivitiesandengagements;establishingandcontrollingprocessesandsystemsaccurately;andbeingcontinuouslywatchful.

• Demonstrating personal integrity:Interactingwithothersinawaythatinspiresconfidenceintheintentionsofthe EWSETA and its employees.


STRATEGICOUTCOME-ORIENTATEDGOALS

GOAL STATEMENT

1 Strengthen institutional capabilitiestomeettheskillsdevelopment needs of the energy and watersectors

EstablishamanagementsystemwithintheEWSETAtogovernallresourceseffectivelyandensuresustainableorganisationalperformanceandreliablecompliance.

2 Addresstheskillsshortagewithintheenergyandwatersectors

Utilise PIVOTAL programmes andestablishacredibleinstitutional research mechanism byMarch2020toaddresssector-specificskillsshortages.

3 Developandimplement a sustainablesocio-economic development plan for informal sectors, including small, medium & micro enterprises (SMMEs)

Engagewithsmallbusinesses,trade unions, NGOs and community-basedorganisations(CBOs) in the sector and identifyskillsneedsanddevelopstrategiestosupportsustainableeconomic development in rural areasandtownshipsandforother relevant partners in the energyandwatersectors.

LEGISLATIVEANDOTHERMANDATESCONSTITUTIONALMANDATES

The Constitution of the Republic of South Africa is thefoundation of an education system that espouses the values of human dignity, equality, human rights, freedom, non-racism andnon-sexismandguaranteesbasiceducationforall.

LEGISLATIVEMANDATES

The following legislationandassociated regulations informthe strategy and operations of the EWSETA:

National legislation and regulations

• SouthAfricanQualificationsAuthorityAct,58of1995:Forms the framework for a national learning systemthat integrates education and training at all levels.

• Further Education and Training Act, 16 of 1998: Provides the basis for the development of nationallycoordinated further education and training.

• General Education and Further Education and Training Quality Assessment Act, 58 of 2001: Provides for the development of norms and standards for curricula and assessments.

• Public Finance Management Act, 1 of 1999 andTreasury Regulations 2005: Promotes the objectiveof good financial management to maximise servicedelivery.

• ThePreferentialProcurementPolicyFrameworkAct,5of 2000 and Regulations 2011: Guides procurement in governmentwhereapreferencepointsystemmustbefollowed.

• NationalSkillsDevelopmentStrategyNSDSIII:DefinesthenationalskillsdevelopmentframeworkandtargetsagainstwhichallSETAsmustdeliver.

• SkillsDevelopmentAct,97of1998:Formsthebasisofthe existence of all SETAs and their operating mandate.

• Employment Equity Act, 55 of 1998: Provides a framework for implementing affirmative actionand protects workers and job seekers from unfairdiscrimination.

• Basic Conditions of Employment Act, 75 of 1997: Forms the basis of all employment relationships andis the backdrop to both learnership agreements andinternal EWSETA employee relations.

The Constitution of theRepublicofSouthAfrica is the foundation of an education system that espouses the values of human dignity, equality, human rights, freedom, non-racism and non-sexism and guarantees basiceducationforall.


• Labour Relations Act, 60 of 1995: Governs bothinternal employee/employer relationships and external learner/employer relationships.

• The Division of Revenue Act, 38 of 2014 (enactedannually): Defines the budgetary allocations forgovernmental organisations.

• King III, 2009: Informs the functioning of the Board and itssub-committees.

• Quality Council for Trades and Occupations (QCTO) gazetted in Government Gazette No 33059, 1 April 2010: Oversees the quality of curricula development and the accreditation and assessment of qualifications.

• The Medium-Term Strategic Framework: Designedto guide governmental policy and the programme of actionoverthenextfiveyears.

• TheHumanResourceDevelopmentStrategyforSouthAfrica, 2009:Promotes the acquisition of knowledgeand skills tomaximise the potential of the people ofSouth Africa.

• New Growth Path (NGP) 2010: Provides bold,imaginative and effective strategies to create themillionsofnewjobsthatSouthAfricaneeds.

• Green Economy Accord 2011: Aims to create 300,000 jobsby2020intheGreenEconomy.

• National Development Plan (NDP) 2013: Aims toeliminatepovertyandreduceinequalityby2030.

Sector-specific regulatory framework

Inadditionto its legislativeframework,thefollowingsectorregulations influence and inform the focus of EWSETAoperations:

• The Strategic Framework for Water Services, 2003:Sets out a comprehensive approach to the provision of waterservices.

• The National Water Resource Strategy (NWRS), 2012: Provides a framework for the use, development,conservation, management and control of waterresources.

• Industrial Policy Action Plan (IPAP 2), 2010/11 – 2012/13:Setsoutindetailkeyactionsandtimeframesfor the implementation of industrial policy.

• Water Services Amendment Act, 30 of 2004: Provides for the right of access to basic water supply andsanitation and the setting of national standards and tariffs.

• National Water Act, 36 of 1998: Acknowledges theNational Government’s overall responsibility for andauthority over the nation’swater resources and theiruse.

• Municipal Structures Act, 117 of 1998: Provides for the establishmentofmunicipalities.

• The Municipal Systems Act, 32 of 2000: Provides for the core principles, mechanisms and processes that enablemunicipalitiestomoveprogressivelytowardsthesocial and economic upliftment of local communities.

• Municipal Finance Management Act, 56 of 2003: Promotes good financial management to maximiseservice delivery.

• Nuclear Energy Act, 46 of 1999: Provides for the establishment of the South African Nuclear EnergyCorporation Limited.

• National Nuclear Regulator (NNR) Act, 47 of 1999: Provides for the protection of persons, property and the environment against nuclear damage through the establishment of safety standards and regulatorypractices.

• National Energy Act, 34 of 2008: Promotes the availability of diverse energy resources in sustainablequantitiesandataffordableprices.



ORG

ANO

GRA

M

Ener

gy

Man

ager

: Si

yolo

Xot

yeni

SectoralCo

llabo

ration&Stakeholder

Enga

gem

ent E

xecu

tive:

Ts

holo

felo

Mok

oted

i (Ac

ting)

Wat

er M

anag

er:

Nor

a H

ankePers

onal

Assis

tant Skills

Developm

ent

& Pl

anni

ng

Man

ager

: K

abel

o M

asilo

Qua

lity, A

ssur

ance

and

Co

mpl

iance

Man

ager

: Sh

anno

n D

avid

s

SkillsDelivery

Man

ager

: El

vis

Ntik

ana

Proj

ect

Man

ager

: Be

nedi

ct

Mas

opha

ChiefOperationsOffic

er:

Inee

leng

Mol

ete

Regi

onal

Ope

ratio

ns

Man

ager

: Lu

ngile

Ts

haba

lala

Corp

orat

e Se

rvice

s Ex

ecut

ive:

Can

dice

Moo

dley

IT &

Fac

ilities

M

anag

er:

Siya

bong

a D

yosi

ba

Pers

onal

Assis

tant

HR M

anag

er:

Buyi

swa

Bing

wa

ChiefFinancia

lOffic

er:

Mph

o M

ooka

pele

ChiefExecutiveOffic

er(C

EO):

Erro

l Gra

dwel

l

Stra

tegi

c Su

ppor

t Man

ager

: Si

phiw

e Zo

ndo

Adm

inist

rato

r: Co

rpor

ate

Gov

erna

nce:

El

liot S

eake

Adm

inist

rato

r: St

rate

gic

Supp

ort

Exec

utive

Per

sona

l Ass

istan

t: Is

abel

la N

xum

alo

Marketing&

Com

mun

ica-

tions

Man

ager

Supp

ly Ch

ain

Man

ager

: Pa

ul M

nisi

Repo

rting,R

isk

& Co

mpl

iance

M

anag

er:

Juliu

s M

aile

Fina

ncial

Ac

coun

ting

Man

ager

: C

athr

ine

Kob

yana

Elec

tricit

y Sp

ecial

istW

ater

Sp

ecial

istRe

sear

cher

Mon

itorin

g an

d Ev

aluat

ion

Prac

titio

ner:

x2

Petr

onel

la

Ngu

beni

Stra

tegi

c Pl

anni

ng

Prac

titio

ner:

Than

diw

e Sh

ashu

Artis

an

Developm

ent

Prac

titio

ner

Proj

ect

Coor

dina

tor:

Beat

rice

Cad

er

Regi

onal

Ope

ratio

ns

Adm

inist

rato

r: Si

phes

ihle

M

azib

uko

Marketing

Prac

titio

ner:

Non

hlan

hla

Maz

ibuk

o

Trav

el Co

ordi

nato

r: M

osek

e M

ogot

si

Riskand

Repo

rting

Offic

er:

Sim

phiw

e M

asek

o

Finan

cial

Cont

rolle

r:R

enda

ni

Tshi

long

o

HR

Adm

inist

rato

r

Reco

rds

& Fa

cilitie

s Ad

min

istra

tor:

Dan

iel

Nai

doo

Care

er C

entre

andWork

Plac

emen

t Ad

min

istra

tor

x 9

Salo

me

Moj

apel

o,N

omaw

onga

M

aphu

hla,

Ts

hiam

o M

asilo

, K

ebot

shet

se

Dip

ale,

R

efilw

e M

olel

e

Call C

entre

Te

am L

eade

r

Supp

ly Ch

ain

Adm

inist

rato

r: M

pho

Map

huti

Talen

t &

Developm

ent

Prac

titio

ner:

Noz

ipho

M

tsha

li

Rese

arch

Ad

min

istra

tor:

Refi

lwe

Rad

ebe

Mon

itorin

g an

d Ev

aluat

ion

Adm

inist

rato

r: En

os K

hoza

Plan

ning

Ad

min

istra

tor:

Lilli

an R

an-

thup

atsa

na

Artis

an

Developm

ent

Adm

inist

rato

r: N

okw

azi

Zwan

e

Proj

ect

Coor

dina

tor:

Patie

nce

Mon

tshi

wa

Regi

onal

Ope

ratio

ns

Coor

dina

tion

x 9

Zuki

e M

abeq

a,

Ren

ecia

W

ilson

, D

ikel

eli

Koi

koi

Com

mun

ica-

tions

Pr

actit

ione

rSu

pply

Chain

Pr

actit

ione

rPr

ojec

ts

Fina

ncial

Co

ntro

ller

Payr

oll &

Pe

tty c

ash

Adm

inist

rato

r: M

bali

Had

ebe

Reso

urcin

g Pr

actit

ione

r: M

then

jwa

Rad

ebe

IT T

echn

ician

x2

Adm

inist

ratio

n Clerksx9

Call C

entre

O

pera

tor:

Rhu

lani

M

anga

nyi

Rece

ptio

nist

Fixe

d As

sets

Co

ntro

ller

Com

plian

ce

Adm

inist

rato

r: Th

abis

a G

uma

QAC

Prac

tition

er

x 3:

Joan

na

Seab

i, Fe

licity

M

aban

ga,

Faith

Zan

tsi

SSP

Prac

titio

ner:

Glo

rie

Mng

uni

SSP

Adm

inist

rato

r

Sani

tatio

n Sp

ecial

ist

Was

te

Spec

ialist

Wat

er

Adm

inist

rato

r: N

tom

bi

Mts

hali

Sani

tatio

n Ad

min

istra

tor:

Ket

lo

Mas

habe

la

Was

te

Adm

inist

rato

r

Elec

tricit

y Ad

min

istra

tor:

Kha

ya

Gqa

man

e

Gas

, Oil

& Nu

clear

Sp

ecial

ist

Gas

, Oil

& Nu

clear

Ad

min

istra

tor

Renewable

Ener

gy

Spec

ialist

Renewable

Ener

gy

Adm

inist

rato

r: An

drie

s D

eda

Perm

anen

t Exe

cutiv

esTempo

raryfilledExecutive

s

Perm

anen

t Man

ager

sTempo

raryfilledManagers

Perm

anentS

taff

Vaca

ncies

Exis

t

Vaca

ncies

Fina

ncial

Co

ntro

ller

Sim

phiw

e Si

bisi

Gra

nt

Adm

inist

rato

r: Li

zzy

Mog

asho

a


FOREWORDBYTHECHAIRPERSON,MR FRANS BALENI

“TheEWSETABoardtakesprideinpresentinganAnnualReportthatreflectssignificantimprovementintheperformanceoftheEWSETAanditspositioning

as a true catalyst in economic development in our country.”

As a country, South Africa requires skills for sustainablesocio-economic development. The Sector Education and Training Authorities (SETAs) are legislated to develop and implement sector-specific skills training programmes. Theneed for SETAs to align their activities, through the National Skills Development Strategy (NSDS) III, with key nationaldevelopment strategies and macro-economic policies, such astheNationalDevelopmentPlan(NDP),remainscritical.

Their role indevelopingSectorSkillsPlans (SSPs) tobuildaconnected informationsystemacrossallmarket sectorsis vital to determining the current and future learning and qualificationsneedsofworkersandemployers.Inaddition,their expertise in labourmarket intelligence and strategiesto address these needs and their interventions to match education and training supply and demand are key tomeetingsector-specificneeds.

Inmy opinion, these authorities should remain as the keydrivers in skills development and training, even beyond2020 when the promulgation of the proposed new SETA

landscape, as detailed in the 2014Whitepaper on PublicEducation andTrainingAuthorities,will irrevocably changethewaytheyfunction.Evenso,itwillnotlessentheirtaskortheneedtofast-trackthecreationofaskillspipelinethatwillcatapult our youth into gainful employment and position our countryasarecognisedplayerintheglobalmarketplace.

This taskhasanemotionalelement to it,aneed forus todevelopempathybyputtingourselvesintheshoesofthoselessprivilegedwhoneedtoacquiretheirskillsthroughSETAtrainingbeforewetalkaboutusingthoseskillstohelpbuildanewandsustainableeconomy.

MyviewisthattheEWSETA,throughskillingandupskillingpeople intheenergyandwatersectors, isalreadyamajorcontributor to sector growth. The Board, therefore, takesprideinpresentinganAnnualReportthatreflectssignificantprogress in positioning the SETA as a true catalyst to economic development in our country. This performance is especiallygratifyingforaSETAwithalowlevybaseand,untilrecently,insufficientcapacitytomeetallitstargets.



HIGHLIGHTSThe increase in learners enrolled in and qualified throughtheEWSETA’sskillsdevelopmentandtrainingprogrammesresulted in the SETA closing considerable gaps betweenNSDSIIItargetsandoutputsdeliveredduringthepastyear. Iamkeenlyawareofanoticeableimprovementinemployeemoraleandagreaterwillingnesstoacceptresponsibilityfortheir actions and impact on organisational performance. In addition,myinteractionwithEWSETAbeneficiariesregardingthe impactof theSETA’s interventionshasbeensingularlyrewardingandencouraging.

STRATEGIC OVERVIEWAs a public entity responding to government’s nationalpriorities, the EWSETA must deliver the quality services that willpositionitasareputableandleadingskillsdevelopmentandtrainingauthorityintheenergyandwatersector.Ibelievethatwiththeentity’sfocusonstrategicplanningforimprovedperformanceduringthepastyear,wehavemadesignificantstridestowardsachievingthisvision.

Ingivingeffecttoits2015/16-2019/20strategy,theEWSETAcontinuedto implementanoperationalplanthatwas, inter alia, informed by a strengths andweaknesses analysis toresolveperformancegaps.Operationsweredirectedbyandmonitored against sound governance principles and Board members received training in their oversight and fiduciaryresponsibilitiesto improvethecoordinationbetweenBoardsubcommitteesandmanagement.

The appointment of a Company Secretary not only assisted with governance and provided much needed support toBoardsubcommitteesbutalsoledtoanimprovementinthequalityofBoarddocumentation.Asaresult,BoardmembersarebetterinformedtoparticipatefullyinBoardmeetingsandengage EWSETA issues.

The EWSETA’s strategic and operational focus during the extended period of the NSDS III will continue to be onartisandevelopment;work-integrated learningplacements,learnerships and internships of TVET and Universities of Technology (UoT) graduates; establishing centres ofspecialisationatTVETcollegesandclose involvementwithnewcollegecampuses;andtherevitalisationofthetownshipand rural economy.

During the reporting period, a number of long-standingexecutive and management vacancies were filled. Withtheadditional expertiseonboard, specifically thoseof the

ChiefFinancialOfficer,ChiefOperatingOfficerandHumanResources Manager, the SETA could address issues of accountability and succession planning. I am pleased toreportsignificantprogressincorrectivemeasurestoaddressurgent issues, such as implementing systems to minimise non-performance and fruitless expenditure and monitor and manage any event that could give rise to corruption.

The EWSETA’s policies and procedures,with the requiredcheck and balances and corrective measures, have allbeen approved by the Board and compliance is beingmonitored.Inthisregard,IworkedcloselywiththeAuditandRisk Committee and Finance Committee to, respectively,ensurethattheactivitiesoftheEWSETAarecompliantwiththe regulationsof its legislative frameworkand there isnomisappropriation of funds.

The SETA’s recruitment drive to address capacity issues delivered satisfactory results, as did staff training andempowerment tooptimise internalcapacitation. Increasingour revenue base through levy income was high onmanagement’s list of priorities through a number of directemployerinteractionsandwillremainsointheyearsahead.My interaction with staff and exposure to stakeholdersprovidedelucidatinginsightsintothewaysinwhichwecanimprovetheEWSETAenvironment. Ihavebeen impressedbythehighlevelsofemployeealertnessandcollegialityandfeelconfidentthatwearebuildingateamthatisexcitedbyour vision and mission and committed to realising the SETA’s purpose, enunciated in its strategic plan.

The increase in learners enrolled in andqualifiedthroughtheEWSETA’sskillsdevelopment and training programmesenabledustocloseconsiderablegapsbetweenourNSDSIII targets and outputs delivered during the past year.


STRATEGIC RELATIONSHIPSSouth Africa has a unique opportunity to create employment opportunities in its renewable natural resources, includingenergy, water and biodiversity. The implementation of theGreenEconomyAccord,asalignedwith thegovernment’sNewGrowthPath(NGP),willseethedevelopmentofgreenskillswhichcouldcreatemore5millionnewjobsby2020.

The EWSETA is fully committed to developing renewableenergy and ‘green economy’ skills to support the GreenEconomy Accord and we are already active in a numberof significant projects. These include the War on Leaksprogramme to train15000ofouryouthasplumbersandartisans in local communities; partnering with the SouthAfricanIndependentPowerProducersAssociation(SAIPPA)toestablishtheUNWomeninOilSouthAfricaprogramme;and events such as the planned Richard’s Bay IDZ SkillsSummittodevelopskillsforthesolar,biomassandfuelcellsandoilandgassubsectorsoftherenewableenergysector.TheSETAalsoparticipatedintheGreenYouthIndabawiththeFibreProcessingandManufacturing (FP&M)SETAandDepartmentofEnvironmentalAffairswherethe focus isoncreating‘green’skillsandcareerpathsforouryouth.

DevelopingthescarceskillsneededtomanageSouthAfrica’swater resourcesandmitigate the impactofdrought in thecountry is an urgent priority for the EWSETA. Our Sectoral CollaborationandStakeholderEngagement(SC&SE)branchisactivelyengagedinkeyinterventions,suchastheYoungWaterProfessionalConferenceandFETwaterprogramme.

Visits to key stakeholders such as Eskom and the WaterBoardsandtheAnnualGeneralMeetingweresuccessfulandinformativeandprovidedtheSETAwithconstructivefeedbackaboutareasofimprovement.TheSETA’sinteractionwithourshareholder,theDepartmentofHigherEducationandTraining,hasalsobeenprogressiveandenabledustoplanaheadtomeetourcompliancedeadlines.Continuedcollaborationwithotherkeystakeholders,suchastheDepartmentofWaterandSanitation, Water Institute of South Africa and education and training partners, also affirms our steadfast commitment tocollectivelyovercometheskillsdevelopmentchallengesinthewaterandenergysectors.

CONCLUSIONWeweresaddenedbythepassingoffellowBoardmember,StephenNhlapoinAugust2016.OnbehalfoftheBoardandtheEWSETA,weagainexpressoursincerecondolencestohisfamilyandreiterateourappreciationofhiswisecounseland contribution to the business and well-being of theEWSETA.

With2018insight,theBoardwillcontinuetoraisethebarfor the EWSETA’s performance towards achieving all itstargetsinpreparationforthenewSETAenvironment.Inthisregard,earlyengagementwithourshareholderwillmitigatelowlevelsofperformanceagainstimposedtargetsduetoalackofresources.

WewillexpandourstakeholderoutreachandentrenchourstructuretotaketheEWSETAtothehighestlevelofmeetingand exceeding stakeholder expectations.Wewill increaseourvisibilityintheprovincesandinschoolsandrelentlesslypursue the best practices learnt from some of the bestperforming SETA’s, such as Fasset, to drive our operations alongatrajectorytowardsserviceexcellence.

MymessagetotheEWSETAteamandstakeholdersisthatour task is that of an army atwar, awar against poverty,unemploymentandanunskilledworkforce.Wemusttacklethechallengesthatlieaheadwithvigourandacommitmentto facilitating world-class skills for the energy and watersectors.Inthis,wemustbevictorious.

My gratitude and appreciation is to our shareholder, the DHET,my fellowBoardmembers, theEWSETA leadershipandstaffandallourstakeholdersfortheircontinuedsupport.Welookforwardtotheircontributionstotheachievementsof the EWSETA in the years ahead.

Mr Frans BaleniChairpersonJuly 2017


OVERVIEWBYTHECHIEFEXECUTIVEOFFICER,MR ERROL GRADWELL

“TheEWSETAwillneedtoplayacatalyticroleinthetransformationoftheeconomytohelpignitejobgrowth,alleviatepovertyandimproveeconomic

competitiveness.”

South Africa’s Sector Education and Training Authorities (SETAs) are mandated to ensure that our employed workforce,especiallytheyouth,peoplewithdisabilitiesandnewlabourmarketentrants,havetheknowledgeandskillsto findmeaningful employment and participate gainfully inthe economy. This includes developing scarce and critical skillsinallbusinesssectorsthroughoutthecountry.

Wesharethismandatewithourpeersandaredeeplyawareof the urgency to address the severe shortage of technical andartisanalskills.Equallyimportantisthatthoseskillsareworld-class and aligned with the National QualificationsFramework.

As thedesignatedskillsdevelopmentauthority inasectorwith two of the country’s most challenged resources –energyandwater–ourroleisrelevantandessential.Energyandwaterarecriticalmillennialdevelopmentgoalsandkeyenablersingrowthanddevelopment.

Creatingtheskillstomanageoursectorresourceseffectivelyisalignedwithgovernment’snationalprioritiesasreflectedinthe economic and employment imperatives of the National DevelopmentPlan(NDP).ThehighereducationandtrainingobjectiveoftheNDPto“buildacapableanddevelopmentalstate” targets, inter alia, the creationof 11million jobsby2030.

The EWSETA is actively pursuing these outcomes. We do so in partnership with likeminded local and internationalstakeholderstomakeameasurableandmeaningfulimpactonaddressing thesechallenges.During thepast year,ouremphasis on strategic planning for improved performance found resonance in the many projects and programmes in whichweparticipate.Anongoingfocusnowisonpartneringwith industry to provide our learners with the workplaceexperience they need to complete their training, actively contributetotheeconomyandimprovetheirlivelihoods.



FINANCIALANALYSISThrough our key stakeholders in the energy andwatersector, the EWSETA’s skills development and trainingservices impact directly on the long-term sustainabilityof South Africa’s economy and infrastructure. Given this context and our focus on improved planning, wewill submitanapplication toNationalTreasury to retainthe 2016/17 surplus to cover the EWSETA’s long-term obligations. The surplus reduces the SETA’s deficit,improvesourfinancialviabilityandprovidestheresourcesto deliver on committed projects.

REVENUEANALYSIS

During the reporting period, revenue through leviesreceived increased by 13% to R287,028 (2016:R253,325). This is due mainly to salary increments from contributingemployersand,specifically, the increase innew levies secured from sector contributing employerscompared to the previous year. Since only about 47%ofallemployersintheenergyandwaterservicessectorpay levies, which the South African Revenue Servicesthen pay to the EWSETA, this achievement is significant. Wewillcontinueoureffortstofurther increaseourpoolof levypayingemployers from theexistingcontributorsin the sector.

Interest and penalties revenue reduced by 61% in the2016/17 financial period and the EWSETA thank ouractive employers for paying their levies on time. Their support testifies to the value of entrenching mutually beneficial relationships and we will continue to do sogoingforward.

Specialprojectincomeincreasedby245%toR1,166,471(2016: R337,243). This represented funds realised from a conditional grant from the Department ofWater andSanitation (DWS) toadministerandmanagetraining forthe War on Leaks programme. The increased revenueforthePhaseIItrainingwasusedtotrain7,000artisansandwateragents,morethandoublethe3,000trainedinPhase 1 in the previous year.

EXPENDITUREANALYSIS

Overall,ourgrantexpenditureshowedapositiveincreaseof142%toR1,359,544(2016:R560,321)fortheperiodunderreview.

Mandatory grants decreased significantly by 59% toR22,500 (2016: R55,509). Some levy payers, including ourlargeststakeholder,submittedincompleteWorkplace

SkillsPlans(WSPs)andAnnualTrainingPlans(ATRs)anddidnotqualifyforthegrant.OurSkillsPlanning(SP)andSectoral Collaboration and Stakeholder Engagement(SC&SE)branchesassistedthese levypayerswith theirsubmissions and will continue to support levy payerswho need assistancewithWSP andATR submissions.Thiswill help tomitigate a continuationof this trend inthe forthcoming financial year more vigorously manage our mandatory grant expenditure.

Discretionarygrants increasedby164%toR1,337,044(2016: R504,806). This included funds paid to the service providerforthetrainingcomponentoftheWaronLeaksprogrammeforbothPhase1(3,000learners)andPhase2 (7,000 learners).

Administrative expenditure increased slightly by 3% toR30,063 (2016: R28,998) on average, due to inflation and other administrative needs. Employee-related expenditureincreasedslightlyby11%toR33,994(2016:R30,462) as a result of strengthening our Executive team and other staff levels through incremental appointments.

Our significantly improved business processes andprocedures increased our ability to pay service andskills development providers timeously during the pastyear. We remain cognisant, however, that continuedduediligencewillensureacontinuationofeffectiveandexpeditious payments. We look forward to reducingexpenditure, such as for consulting fees, due to the strengthened expertise in-house.

“The entrepreneurship element of the training will,initself,haveanimpact on the economic advancement of a large numberofpeople.”


RESPONSE TO NATIONAL IMPERATIVESIn his State of the Nation Address in February 2017,President Jacob Zuma identified a number of nationalpriorities.ThosethatrelatecloselytothebusinessoftheEWSETA include economic growth and development,education and training and government capacity to respond to development imperatives.

Duringthepastyear,anumberofourinitiativesaddressedthese priorities directly. Our participation in the War on Leaks project, with the DWS and Rand Water is onesuch an initiativewhere I am pleased to report that wemoved onto Phase 2 of the projectwith 7,000 learnersundergoingtraining,whilethefinalphasewillconsistofanintakeof5,000learners.

In consultation with the Institute of Plumbers of SouthAfrica (IoPSA), the EWSETA identified entrepreneurshipas a compulsory training module in the War on Leakstraining programme. This important intervention willenablegraduates from theprogramme toestablish theirown businesses, independently or in partnership withothers. Itwill also assist the80%of their approximately600membership basewho are one-man businesses tobecome more confident in expanding their companies.The entrepreneurship module will also form the coreof IoPSA’s continued professional development (CPD)programme, which is included in our Memorandum ofUnderstandingwiththeInstitute.

“The entrepreneurship element of the training will, in itself, have an impact on the economic advancement of a large number of people.”

The EWSETA also facilitated the entry of 4,000 unemployed leaners, mainly youth and people withdisabilities,intoEWSETAlearnership,internshipandskillsprogrammes during the reporting period. More than 1,400 of these learners completed their programmes and are nowbetterequippedtofindwork.Inaddition,400ofthemorethan900artisanswhoenteredrelevantlearnership,internshipandskillsprogrammescompletedtheircoursessuccessfully.

We supported non-governmental organisations (NGOs) to attend the Stellenbosch University School for PublicLeadership (SPL) and Stellenbosch University WaterInstitute (SUWI) Water Governance for Water Leaders short-coursewith23municipalofficialsandeducatorsfromTechnical and Vocational Education and Training (TVET) colleges.Thecoursecreatesleadershipabilityintermsofpolicy implementation, service delivery and dealingwiththe water governance challenges and constraints at alllevelsofgovernmentandwithintheprivatesector.

We are also pursuing a number of nuclear, oil and gasand green economy initiatives, as detailed in the Sectoral CollaborationandStakeholderEngagementsectionofthisreport,tosupporttheseareaswiththerequisiteskillsandtrainingprogrammestotakeSouthAfricaintothefuture.

PERFORMANCE OVERVIEWOur major focus during the past year amongmembersandemployeesalikehasbeenthetirelesslychampioningof strategic planning for improved performance by ourChairperson, Mr Msokoli Frans Baleni, since he joinedtheAccountingAuthorityasChairpersonduringFebruary2016.

We invited representatives from the Department ofPlanning,MonitoringandEvaluation(DPME),Departmentof Higher Education and Training (DHET) and our sisterSETA, the top-performing Finance and Accounting Services Sector Education and Training Authority (FASSET), to join our strategy planning session to share government’splanningcycle,itseffectontheSETAsandbestpracticeswithustoinformandimproveourplanning.

WeappreciatedourinteractionwithMsEdeshriMoodleyoftheOfficeoftheDirector-General:Planning,MonitoringandEvaluation,MsMelissaEra from theDHET and theChiefExecutiveOfficerofFASSET,MsCherylJames.TheChairpersonsofourBoardsubcommitteesalsopresentedtheirsuggestionsonclosinggapsandmovingforward.

Subsequently, we have been working closely with theplanningdivisionsoftheDPMEandDHET.


PROCUREMENTEFFICIENCY

Asakeyprocurementcompliancemechanism,ourSupplyChain Management (SCM) system directs our support of SMMEsandblack-ownedserviceprovidersinaccordancewith thePreferential ProcurementPolicy FrameworkAct(PPPFA), 5 of 2000, and ensures that our contracting processes are open and transparent.

Although this bears testimony to effective supply chainmanagement, some challenges remain. These include budgetconstraints to fullycapacitateourSCMstructureanddelays inpolicyupdates.Thisaffects theEWSETA’spoliciesandourabilitytosupportSMMEgrowthandjobcreation.

There were no unsolicited bid proposals for the periodunderreview.

CAPACITYCONSTRAINTSANDCHALLENGES

TheEWSETA’soperationshasforsometimebeencrippledby the lack of permanent appointments at executivemanagement and management levels. These included theChiefFinancialOfficer (CFO),ChiefOperatingOfficer(COO), Human Resources Manager and Information and Communications Technology (ICT) and Facilities Manager. As a result, employee capacity and training did not receive the required attention. I am glad to report that during the period under review these vacancies are now filled andthe organisational structure is currently being reviewedto include new financial management and a planning,monitoringandevaluationbranch inorder torespondtothe improved planning tragectory.

ECONOMIC EMPOWERMENT THROUGH PARTNERSHIPS

The EWSETA is actively involved in programmes that supportblackeconomicempowerment (BEE),especiallywithin the Small, Micro andMedium Enterprise (SMME)sector.Ouractiveandconstructiveinteractionwithpublicandprivatesectorstakeholderslocallyandinternationallyenables the EWSETA to give effect to this imperative.During the past year, we established and entrenchedrelationships with a range of partners in a number ofexistingandnewinitiatives.

Aflagshipproject is theRuralandTownshipEconomiesRevitalisation Programme (RATERP), a partnership programme under the custodianship of the DHET withtheDepartmentofSmallBusinessDevelopment (DSBD)as a major stakeholder and the Wholesale and RetailSector Education and Training Authority (W&RSETA) and EWSETA as the implementing agents. RATERP is cross-sectorial and aimed at recruiting, training, mentoring, coaching and capacitating approximately 12,000 small and micro enterprises (SMEs) throughout the country.

The EWSETA and DBSD each committed R10 millionto fund the roll-out of a RATERP pilot in at least six provinces (FreeState,Limpopo,KwaZulu-Natal,EasternCape, Gauteng and Western Cape). We are currently approaching other funders to increase the funding to aboutR600millionandengaginganumberofadditionalpartners, such as the South Africa TechnologyNetwork(SATN), Universities of Technology and the Technology Innovation Agency (TIA) because of their footprint ine-wastescienceandmanagement.

Itakegreatprideinreporting that the EWSETA’s overall performance against meetingitsNSDSIIItargetsforthe2016’17financialyearincreasedsignificantlywhencomparedtothe previous year’s performance. Through the rigorouseffortsofthenewChiefOperationsOfficer,thisimprovementwillcontinueupwardstowardsachieving100%acrossalltargets.


As part of our involvement in RATERP, the EWSETA submitted a sector-specific proposal to the DHET tosupport the national roll-out of ‘Household Appliances Repairs and Maintenance’ training of 9,000 artisans to enhanceefficiencyintheenergyandwatersector.

SimilartoourinvolvementinRATERP,weareparticipatingas the skills development and training arm in thewastemanagement and especially e-waste managementprogramme of the Department of Environmental Affairs(DEA).Weaccompanied representatives fromSATNandTIA on a tour to learning institutions in India to look atmanagingwastebywastetoenergytechnologies.

We also engaged stakeholders through exhibitions,workshops and presentations at important SMME andsector-focused information-sharing and networkingevents. These included, inter alia, the Africa in Energy Indaba, Africa Gas Forum, Power & Electricity WorldAfricaandWaterShowAfrica,aswellasthewindenergyWindabaConferenceandthewaterandsanitationWISAConference.

A project that I am particularly proud of is the innovative energyDRIVE truck project launched with the DurbanUniversity of Technology in December 2016. A first ofits kind in Africa, the project will contribute to publicknowledgeaboutclimatechangeandalternativeenergies.ThemobileunitiscurrentlyonaroadshowtoschoolsandTechnical and Vocational Education and Training (TVET) collegesandisusedtoparticipateinexhibitionsnationallyaimed at educating entrepreneurs, unemployed youth, prospective students and scholars in renewable energysources and technologies. The truck will help to createawareness about natural, alternative and renewableenergy resources and demonstrate the use of related technologies,aswellaspromoteskillstraininginenergy.

PLANS FOR THE FUTUREIn the wake of an action-packed and operationallyrewarding year, the EWSETA is looking forward tomaintaining the momentum in the year ahead. We willintensify our stakeholder drive and collaboration withgovernmentdepartmentsinvolvedintheenergyandwatersector.Wewill also prioritise our role in addressing therampant youth unemployment in the country and engage privatesectorentitieswithanactiveinterestineducationand training.

Important challenges, such as increasing our levy income stream toaddress theskills needs, skillspool andskillspipeline in our sector, as well as learner exposure topractical workplace experience and developing setsof qualifications for new, emerging occupations in thenuclearengineering,windandsolarenergyfields,willbedealtwith in thespiritofstrategicplanning for improvedperformance. Planned actions in the year ahead include, inter alia,capacitybuildingatTVETcolleges,coordinatingresearch outputs to clarify sector labour demands,professional development to meet future needs and the developmentofprogrammestoaddressmiddlelevelskillsincluding those in the technical and artisan trades.

A focus on partnerships and improved monitoring, evaluationandassessing the impactofouractivitieswillform part of these initiatives. We are ready for another enrichingandproductiveyearinleadingskillsdevelopmentandtrainingtheenergyandwatersector.

APPRECIATIONAswelookforward,Iwouldliketothankourpartnersandstakeholdersfortheirsupport,participationanddynamicprogrammes to address our nation’s most pressing challenges. I also wish to thank and acknowledge thecommitment of the Accounting Authority of the EWSETA, my management team and our team of dedicated employees for steadfastly steering the SETA along its mandated trajectory to deliver real solutions to real challenges inoursectorandthe livesof thosewho lookto us for direction.

Mr Errol GradwellChiefExecutiveOfficerJuly 2017

PART B: Performance Information EWSETA ANNUAL REPORT 2016/1724

PART BPERFORMANCE INFORMATION


STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATIONAs the Chief Executive Officer of the EWSETA, I amresponsible for the preparation of the public entity’sperformance information and the judgements made in this information.

I amalso responsible for establishing and implementing asystemofinternalcontrolstoprovidereasonableassuranceabout the integrity and reliability of the performanceinformation.

In my opinion, the performance information contained in this Annual Report reflects fairly the actual achievementsagainstplannedobjectives,indicatorsandtargetscontainedin the EWSETA Strategy Implementation Plan and Annual PerformancePlanforthefinancialyearendedMarch2017.

The EWSETA’s performance information for the year then ended has been examined by the external auditors. Theirreport is presented on page 88.

The EWSETA Accounting Authority approved the entity’s performance information as set out in this document.

MrErrolGradwellChiefExecutiveOfficerJuly 2017

“Important challenges, such as learner exposure to practical workplace experience and developing qualifications for new, emerging occupations in the nuclear engineering, wind and solar energy fields, will be dealt with in the spirit of strategic planning for improved performance.”


ANNU

AL P

ERFO

RMAN

CE R

EPO

RTTA

BLE

1: E

WSE

TA A

NNUA

L PE

RFO

RMAN

CE R

EPO

RT

Strategicob

jectives

Perfo

rman

ce in

dica

tors

Plan

ned

annu

al ta

rget

sAc

hiev

emen

t m

ilest

ones

Varia

nce

Reas

ons

for v

arian

ce

Ensu

re th

e op

timal

utilis

atio

n of

ex

istin

g an

d ad

ditio

nally

sou

rced

fundsthrougheffectivestructuring,

syst

ems

and

reso

urcin

g

95%spenton

DiscretionaryGrants

95%

77,2%

17,18%

Theem

ployerswhowererecommendedfortheapp

rovals

didnottakeuptheallocationwithintheprescribedrepo

rting

perio

d.Le

vy m

anag

emen

tIncreaselevyby

5%12,7%

7,7%

Levyincomeincreasedby7.7%morethanexpected.The

increaseisattributabletoanincreaseinlevypayersand

potentiallabo

urforceandcostincreaseinthesector.

Vaca

ncy

rate

10%

-44%

-34%

For2

016/17

,thefocuswasonfillingcritic

alpo

sitionsthat

inclu

dedvacantExecutiveandkeymanagem

entp

ositio

ns.

Theseweresuccessfullyfilled.Furtherrecruitm

ent,ashas

beenthecaseforthepastfew

years,w

illbeincrem

entaldue

tobudgetaryconsid

erationsandaffordability.

Achi

evem

ent o

f em

ploy

men

t equ

ity

targ

ets

95%

69%

26%

Ourworkforceemploymentequityhasincreasedfromthe

previousyeara

ndbasedonthenewEEPlan,w

hichis

awaitingfinalapproval,ournew

targetsshouldberealised

withinthenextthreeyears.

Enhancerigorousaccountability

and

gove

rnan

ce s

truct

ures

Theestablish

ment

ofenergyandwater

serv

ices

sect

or

cham

bers

Ener

gy a

nd

WaterChambers

are

func

tiona

l

Not a

chiev

edNo

t ach

ieved

Theprocessofnom

inatingcham

berstakeholderswasnot

conc

lude

d.

Build

a p

ositiv

e im

age

of a

nd

repu

tatio

n fo

r the

EW

SETA

Numbero

fpublications

com

mun

icate

d16

160

Targ

et a

chiev

ed.

Cust

omer

sat

isfac

tion

surv

ey c

ondu

cted

11

0Ta

rget

ach

ieved

.

Numbero

fstakeholder

roadshow

sheld

1020

+10

Exceededtargetdueto

partnershipswithindustry,which

inclu

dedWorkplac

eSillsPlan

sroadshow

s.Main

tainaneffectiveinform

ation

man

agem

ent s

yste

mAc

hiev

emen

t of

mile

ston

es a

s pe

r th

e ap

prov

ed IC

T Im

plem

enta

tion

Plan

Achi

evem

ent o

f m

ilest

ones

as

per

the

appr

oved

ICT

Impl

emen

tatio

n Pl

an

3 ou

t of 5

m

ilest

ones

ac

hiev

ed

-2TheICTImprovem

entP

lanform

edthebasis

ofthe201

6/17

Im

plem

enta

tion

Plan

and

out

of t

he 5

mile

ston

es in

dica

ted,

3havebeenaddressedsuccessfully.Theseinclu

dethe

appo

intm

ent o

f an

ICT

Man

ager

, an

in-d

epth

ana

lysis

of th

e IC

T en

viron

men

t and

the

deve

lopm

ent o

f pro

cedu

res

and

repo

rtsasidentifiedbytheAG

SAinthepreviousauditperiod.


Strategicob

jective

sPe

rform

ance

indi

cato

rsPl

anne

d an

nual

targ

ets

Achi

evem

ent m

ilest

ones

Va

rianc

eRe

ason

s fo

r var

ianc

eSE

TA-

fund

edNo

n-SE

TA

fund

edTo

tal a

nnua

l ta

rget

SETA

-fu

nded

Non-

SETA

fu

nded

Tota

l ac

hiev

emen

tM

aint

ain

rese

arch

st

rate

gy th

at in

form

s Se

ctorSkillsPlanning

An u

pdat

ed R

esea

rch

Stra

tegy

--

-Re

sear

ch

stra

tegy

not

up

date

d

--

-Th

efocuswasre

-directed

to th

e de

velo

pmen

t of a

Re

sear

ch A

gend

a as

a

newDHET

requ

irement.

Annualre

viewofthe

SectorSkillsPlan(S

SP)

Revie

wed

SSP

subm

itted

toDHE

Tfor

appr

oval

--

Revie

wed

SSP

subm

itted

to

DHET

and

ap

prov

ed

-Re

viewed

SSP

subm

itted

to

DHET

and

ap

prov

ed

-Th

eSe

ctorSkillsPlanwas

approved

bytheMinister.

Numbe

roffirm

ssupp

ortedwith

man

dato

ry g

rant

s

160

-16

010

9-

109

- 51

146subm

itted

WSP

sand

ARTs

and

109

met

the

crite

ria a

nd re

quire

men

ts

as p

er G

rant

regu

latio

ns.

Incr

ease

acc

ess

to o

ccup

atio

nally

-di

rect

ed p

rogr

amm

es

for e

mpl

oyed

and

un

empl

oyed

lear

ners

to

add

ress

crit

ical

and

scarceskills

Numbe

roflearners

ente

red

into

AET

pr

ogra

mm

es

7525

100

50-

50- 5

0Th

e EW

SETA

ach

ieve

d 50

%onthisannualta

rget.

Resp

onse

from

the

sect

or

wasnotfo

rthcoming.

Numbe

roflearners

com

plet

ed A

ET

prog

ram

mes

38-

3850

-50

+ 12

The

resp

onse

from

the

disc

retio

nary

adv

ert

waspositiv

e,hence

over

achi

evem

ent.

Numbe

rofunemployed

ente

red

lear

ners

hips

1,20

060

01,

800

1,46

757

12,

038

+ 23

8Th

e re

spon

se fr

om th

e di

scre

tiona

ry a

dver

t waspositiv

e,hence

over

achi

evem

ent.

Numbe

rofunemployed

enteredbu

rsaries

400

100

500

518

-51

8+

18Th

e re

spon

se fr

om th

e di

scre

tiona

ry a

dver

t waspositiv

e,hence

over

achi

evem

ent.


Strategicob

jective

sPe

rform

ance

indi

cato

rsPl

anne

d an

nual

targ

ets

Achi

evem

ent m

ilest

ones

Va

rianc

eRe

ason

s fo

r var

ianc

eSE

TA-

fund

edNo

n-SE

TA

fund

edTo

tal a

nnua

l ta

rget

SETA

-fu

nded

Non-

SETA

fu

nded

Tota

l ac

hiev

emen

tNu

mbe

rofunemployed

ente

red

Inte

rnsh

ips.

250

650

900

387

-38

7-5

13Th

e co

st o

f mee

ting

this

targ

et is

not

real

istic

cons

ider

ing

our r

even

ue

stre

ams.

Nu

mbe

rofunemployed

enteredskills

prog

ram

mes

600

100

700

976

311

1,28

7+

587

Targ

et o

vera

chie

ved

due

toW

aronLeaksspecial

proj

ect

Numbe

rofunemployed

com

plet

ed le

arne

rshi

ps90

0-

900

493

230

723

-177

Targetwasnotachieved

due

to la

te im

plem

enta

tion

of p

roje

cts.

Numbe

rofunemployed

completed

bursaries

250

-25

0-

-0

- 250

Qualificationtaketh

ree

year

s m

inim

um h

ence

no

com

plet

ions

regi

ster

ed.

Numbe

rofunemployed

com

plet

ed In

tern

ship

s45

0-

450

110

-11

0- 3

40La

te s

tart

of th

e prog

ramme,hencewe

can’

t rep

ort f

or th

is financialyear.

Numbe

rofunemployed

completed

skills

prog

ram

mes

350

-35

039

9-

399

+ 49

The

resp

onse

from

the

disc

retio

nary

gra

nt a

dver

t waspositiv

ehencethe

over

achi

evem

ent.

Numbe

rofw

orkers

ente

red

lear

ners

hips

300

500

800

483

383

866

+ 66

The

resp

onse

from

the

disc

retio

nary

adv

ert

waspositiv

e,hence

over

achi

evem

ent.

ANNU

AL P

ERFO

RMAN

CE R

EPO

RTTA

BLE

1: E

WSE

TA A

NNUA

L PE

RFO

RMAN

CE R

EPO

RT


Strategicob

jective

sPe

rform

ance

indi

cato

rsPl

anne

d an

nual

targ

ets

Achi

evem

ent m

ilest

ones

Va

rianc

eRe

ason

s fo

r var

ianc

eSE

TA-

fund

edNo

n-SE

TA

fund

edTo

tal a

nnua

l ta

rget

SETA

-fu

nded

Non-

SETA

fu

nded

Tota

l ac

hiev

emen

tNu

mbe

rofw

orkers

enteredbu

rsaries

-15

015

041

-41

- 59

Tim

ing

of th

e ad

vertisementw

asnot

linkedtoth

eacad

emic

year

.Nu

mbe

rofw

orkers

enteredskills

prog

ram

mes

450

1,55

02,

000

986

551,

040

- 960

Notm

anyworkersenrolled

forskillsprog

rammes

Numbe

rofw

orkers

ente

red

RPL

100

-10

012

812

8+

28Th

e re

spon

se fr

om th

e di

scre

tiona

ry a

dver

t waspositiv

e,hence

over

achi

evem

ent.

Numbe

rofw

orkers

com

plet

ed le

arne

rshi

ps40

0-

400

560

9465

4+

254

The

resp

onse

from

the

disc

retio

nary

adv

ert

waspositiv

e,hence

over

achi

evem

ent.

Numbe

rofw

orkers

completed

bursaries

50-

50-

-0

- 50

Qualificationsareth

ree

year

s m

inim

um h

ence

completionscan’tbe

regi

ster

ed.

Numbe

rofw

orkers

completed

skills

prog

ram

mes

225

-22

5-

670

670

+ 44

5Th

e re

spon

se fr

om th

e di

scre

tiona

ry a

dver

t waspositiv

e,hence

over

achi

evem

ent.

Numbe

rofw

orkers

com

plet

ed R

PL.

50-

50-

-0

- 50

Someofth

elearnerswho

wereenrolled,wereno

tfo

und

com

pete

nt.

Numbe

roflearners

ente

red

cand

idac

y pr

ogra

mm

es

0-

20-

-0

- 20

Con

cept

ualis

atio

n of

the

prog

rammewasnotto

ocl

ear a

nd e

mpl

oyer

s di

dn’t

resp

ond

to th

e ad

vert.


Strategicob

jective

sPe

rform

ance

indi

cato

rsPl

anne

d an

nual

targ

ets

Achi

evem

ent m

ilest

ones

Va

rianc

eRe

ason

s fo

r var

ianc

eSE

TA-

fund

edNo

n-SE

TA

fund

edTo

tal a

nnua

l ta

rget

SETA

-fu

nded

Non-

SETA

fu

nded

Tota

l ac

hiev

emen

tNu

mbe

roflearners

com

plet

ed c

andi

dacy

pr

ogra

mm

es

0-

0-

-0

Con

cept

ualis

atio

n of

the

prog

rammewasnotto

ocl

ear a

nd e

mpl

oyer

s di

dn’t

resp

ond

to th

e ad

vert.

Numbe

rofT

VETstud

ent

ente

red

plac

emen

ts50

-50

32-

32- 1

8OnlytwoTV

ETcolleges

resp

onde

d to

the

expr

essio

n of

inte

rest

.Nu

mbe

rofT

VETstud

ent

com

plet

ed p

lace

men

t25

-25

--

0- 2

5Collationofverifia

ble

inform

ationwasnot

conc

lude

dNu

mbe

rofU

niversity

stud

ents

ent

ered

pl

acem

ent

5050

-72

72+

22Th

e re

spon

se fr

om th

e di

scre

tiona

ry a

dver

t waspositiv

e,hence

over

achi

evem

ent.

Numbe

rofU

niversity

stud

ents

com

plet

ed

plac

emen

t

25-

25-

-0

- 25

Prog

ram

mes

sta

rted

late

inth

epa

stfinancialyear.

Numbe

rofS

ETA/TV

ET

colle

ge p

artn

ersh

ips

5-

57

-7

+ 2

An in

crea

sed

partn

ersh

ip

withTVE

Tcolleges

ensuredthatwe

over

achi

eved

our

ann

ual

perfo

rman

ce p

lann

ed

targ

et.

Numbe

rofS

ETA/

Unive

rsity

par

tner

ship

s2

-2

3-

3+

1An

incr

ease

d pa

rtner

ship

withTVE

Tcolleges

ensuredthatwe

over

achi

eved

our

ann

ual

perfo

rman

ce p

lann

ed

targ

et.

ANNU

AL P

ERFO

RMAN

CE R

EPO

RTTA

BLE

1: E

WSE

TA A

NNUA

L PE

RFO

RMAN

CE R

EPO

RT


Strategicob

jective

sPe

rform

ance

indi

cato

rsPl

anne

d an

nual

targ

ets

Achi

evem

ent m

ilest

ones

Va

rianc

eRe

ason

s fo

r var

ianc

eSE

TA-

fund

edNo

n-SE

TA

fund

edTo

tal a

nnua

l ta

rget

SETA

-fu

nded

Non-

SETA

fu

nded

Tota

l ac

hiev

emen

tNu

mbe

rofS

ETA/

Empl

oyer

par

tner

ship

s10

-10

1010

0Ta

rget

ach

ieve

d.

LecturerDevelop

ment

Prog

ram

mes

ent

ered

5-

507

-07

+ 2

The

cost

of t

rain

ing

lecturerswaslow,asa

resu

lt SE

TA e

nrol

led

an

additionaltwolecturers

unde

r thi

s pe

rform

ance

in

dica

tor.

LecturerDevelop

ment

Prog

ram

mes

com

plet

ed5

-5

40

4- 1

Someofth

elearnerswho

wereenrolled,wereno

tfo

und

com

pete

nt.

Enha

nce

capa

city

to

meete

nergyandwater

indu

stry

sup

ply

need

s

Numbe

rofaccredited

skillsdevelop

ment

prov

ider

s

10-

1010

010

0Ta

rget

ach

ieve

d.

Numbe

rofT

VETCo

llege

lect

urer

s tra

ined

50-

5018

015

-35

EWSE

TA tr

aine

d an

d su

ppor

ted

15

lect

urer

s in

var

ious

le

ctur

er d

evel

opm

ent

prog

ram

mes

.Nu

mbe

roftrade

test

cent

res

accr

edite

d10

-10

100

100

Targ

et a

chie

ved.

Numbe

rofq

ualifications

deve

lope

d5

-5

40

4-1

Therewasadifficulty

inte

rmsofstakeho

lder

parti

cipa

tion,

QC

TO

proc

esse

s ca

used

tim

e de

lays

and

con

sens

us

couldno

tbereached

rega

rdin

g th

e tit

le o

f the

qu

alific

ationandscop

eof

the

occu

patio

n.


Strategicob

jective

sPe

rform

ance

indi

cato

rsPl

anne

d an

nual

targ

ets

Achi

evem

ent m

ilest

ones

Va

rianc

eRe

ason

s fo

r var

ianc

eSE

TA-

fund

edNo

n-SE

TA

fund

edTo

tal a

nnua

l ta

rget

SETA

-fu

nded

Non-

SETA

fu

nded

Tota

l ac

hiev

emen

tFa

cilita

te in

crea

sed

artisanskillscapa

city

withinth

eenergy

andwaterservic

es

sect

ors

Numbe

rofartisans

ente

red

into

lear

ning

pr

ogra

mm

es

400

1,30

01,

700

597

361

958

- 742

The

cost

of t

rain

ing

for a

rtisa

ns is

not

afforda

blethroug

hthe

reve

nue

stre

ams

that

the

orga

nisa

tion

has.

Numbe

rofartisans

com

plet

ed le

arni

ng

prog

ram

mes

200

-20

00

433

433

+ 23

3Num

bero

flearners

increasedfro

mth

efirst

phaseofW

aronLeaks

proj

ect a

nd in

dust

ry-

fund

ed in

terv

entio

ns.

Raise

awarenessof

care

er a

nd v

ocat

iona

l gu

idan

ce

Numbe

rofcareerg

uide

sdistributed

12,0

00-

12,0

0012

,000

012

,000

0Ta

rget

ach

ieve

d.

Numbe

rofcareer

awarenesseventsheld

15-

1515

-15

0Ta

rget

ach

ieve

d.

To p

rom

ote

lear

ning

an

d de

velo

pmen

t th

at a

ddre

sses

soc

io-

econ

omic

ineq

ualiti

es

in s

ocie

ty

Numbe

rofcoo

peratives

supp

ortedwith

skillsdevelop

ment

prog

ram

mes

30-

305

-5

-25

Targ

et n

ot m

et d

ue to

bu

dgetaryconstra

ints.

Numbe

rofsmall

busin

essessupp

orted

withskillsde

velopm

ent

prog

ram

mes

20-

209

-9

-11

Targ

et n

ot m

et d

ue to

bu

dgetaryconstra

ints.

ANNU

AL P

ERFO

RMAN

CE R

EPO

RTTA

BLE

1: E

WSE

TA A

NNUA

L PE

RFO

RMAN

CE R

EPO

RT


Strategicob

jective

sPe

rform

ance

indi

cato

rsPl

anne

d an

nual

targ

ets

Achi

evem

ent m

ilest

ones

Va

rianc

eRe

ason

s fo

r var

ianc

eSE

TA-

fund

edNo

n-SE

TA

fund

edTo

tal a

nnua

l ta

rget

SETA

-fu

nded

Non-

SETA

fu

nded

Tota

l ac

hiev

emen

tNu

mbe

rofnon

-go

vern

men

tal

orga

nisa

tions

(N

GO

s) s

uppo

rted

in

skillsdevelop

ment

prog

ram

mes

5-

56

-6

+1Targetwasexceede

ddu

e to

the

high

leve

l of

dem

and

supp

ort n

eede

d byNGOsop

eratingwithin

theenergyand

water

sect

ors.

Numbe

rofnon

-levy

payin

g en

terp

rises

(N

LPEs

) sup

porte

d withskillsde

velopm

ent

prog

ram

mes

0-

0-

-0

--

Numbe

rofcom

munity-

basedorganisations

(CBO

’s) s

uppo

rted

withskillsde

velopm

ent

prog

ram

mes

5-

5-

-0

-5Ta

rget

not

met

due

to

budg

etaryconstra

ints.

Numbe

roftrade

unionssup

porte

dwith

skillsdevelop

ment

prog

ram

mes

3-

3-

-0

-3Ta

rget

not

met

due

to

budg

etaryconstra

ints.

Numbe

rofrural

deve

lopm

ent p

roje

cts

supp

ortedwithskills

deve

lopm

ent

10-

1010

-10

0Ta

rget

ach

ieve

d.

PART C: Operations Report EWSETA ANNUAL REPORT 2016/1734


PART COPERATIONS

REPORT


OVERVIEWBYTHECHIEFOPERATIONSOFFICER(COO),MR INEELENG MOLETE

“Ouroperationsfunctionisnowpositionedattherightlevelforoptimalimplementationandfocusedcollaborationwithstakeholders.”

The EWSETA’s Operations branch provides sector-specificlearnership programmes and bursaries through skillsdevelopment and planning, quality assurance and compliance, skillsdelivery,projectmanagementandprovincialoperations.

Themain objectives of theOperations branch are alignedwiththeNSDSIIIandlinkedtonationalpriorities.TheDHETdeclarationofthe“DecadeoftheArtisan”in2014createdaspecificandongoingfocusonartisandevelopment.

We also assist with placing skills training graduates inworkplace programmes to gain workplace experience tomeet their qualification requirements and enter the jobmarketasactivelycontributingemployees.

OPERATIONSLANDSCAPETheOperationsbranchprovidesadministrativesupporttotheEWSETA’sSkillsDevelopmentandPlanning,SkillsDeliveryand Quality Assurance and Compliance programmes. In additiontotheabove,ouremphasisonimprovingtheSETA’sadministrative activities during the reporting period included the delivery of an improved, research-based Skills SectorPlan (SSP), occupationally-directed programmes to improve skills levels in theenergyandwatersectorsand improvedquality assurance for the SETA.

The improved quality of the research for our SSP also increasedourabilitytobudgetandplanmoreeffectivelyforthe year ahead.


Operationally,thisbranchisalsoresponsibleforgivingeffecttoalltheEWSETA’sstrategicobjectives.Asastrategiclevel,wehavetodevelopqualificationsthatareconsistentacrossalllevelsofskillstraining–fromnewentrantstotheupwardmobility of people already employed. Two qualificationmodels are currently at play: the old model with existingqualificationsthatisstillbeingmonitoredandanewmodelforrenewableenergyandnuclearskills,aswellasnew‘bluedropstatus’waterskills.

PERFORMANCE ENVIRONMENT

The need to meet both the conventional and renewableenergygenerationskills requirements in theenergysector,exacerbatestheshortageoftechnicalskillsinSouthAfrica.Inaddition, our investment in education is not delivering maths and science students at tertiary education levels since less than3%ofmatriculantsgraduatewithauniversityentrance.

This reality and government’s focus on implementing its Strategic Integrated Projects, NDP initiatives and NewGrowth Path policy and programme, gives context to theEWSETA’s strategy of delivering skills that respond to theneedforexisting,aswellasanewrangeof,technicalskills.Thisfocushasalreadyhadavisibleimpactontheeconomy.

Without expert stewardship, however, sector skillschallengeswill continue to impact our sustainable growthand development.

ORGANISATIONAL ENVIRONMENT

The phased implementation of the EWSETA’s revised organisational strategy (2013) since 2014/15 has realigned our operational, strategic and governance requirements and given greater focus to increasing our revenue streams. This hasmeant partneringwith TVET colleges andUniversitiestodeliverintermediateandhigh-levelskillswhilemaintainingadministrativecostsat10.5%ofourannualbudget.

There is no doubt that the realigned structure,with someadaptations during the past year, and implementation of a change management process to increase capacity in the EWSETA’s performance management framework, hasequipped us to improve delivery against our mandate.

CHALLENGESANDACHIEVEMENTSDuring the reporting period, some employees in theOperations branch resigned to pursue other careeropportunities.Theremainingstaffwillprovidemuch-neededcontinuityasweenterthenewfinancialyear.Roleconfusionissues among employees prior to the restructuring process havelargelybeenaddressedandplanstofillallthepositionsinthenewstructureearlyinthenewfinancialyearwillresolveany related concerns.

Ineffective skills delivery previously caused delays in andnon-compliancewith the implementationofmostprojects.Employees in the Operations branch also were unclearaboutthelinkbetweentheirdepartmentsandtheEWSETA’sAPP.Theappointmentof thenewCOOclarified this issueand resulted in greater efficiency overall in our operationsenvironment.

SOME HIGHLIGHTS

• Strategic planning for improved performance – understanding the alignment between implementationandtheAPPwithafocusonemployeeleadershipandinvolvementstimulatedcollaborationandcooperation,especially in terms of planning, which improvedownershipandmoralegreatly.

• Clear indicators for implementation – forthefirsttimeduring the past year, we focused our implementationontherightindicators,whichenhancedouroperationsabilitysignificantly.

• Project management – changing our applicant pre-selection focus from accreditation to competence to ensure that new market entrants could do the job,solicitedpositivesectorfeedback.

• Quality services – compared to the previous financialyear,our increasedefficiencyindisbursementpaymentsresultedinacommitmentsscheduleownedby employeeswilling to take responsibility for projectimplementation.

• Skills delivery –under thenew leadership,a refinedmodel improved our skills delivery significantly. Thisincluded timeous project implementation, applicant due diligencetoconfirmourSSPneeds,maximisedreturnthrough encouraging partners to confirm their skillsdevelopment intentions and the ability to finalise oldprojects.


• Resource optimisation – greater clarity aboutperformance expectations and responsibilitiesoptimised the use of human resources, identified theremaining gaps and improved employee performance throughouttheOperationsbranch.

• Improved decision-making – under the newleadership, decisions are made immediately to support employee performance.

• Execution of plans – our achievements against performance indicatorsconfirmed tostakeholdersourabilitytorespondeffectivelytooperational imperativesand commitments.

PERFORMANCE OVERVIEW Our 2016/17 Annual Performance Plan (APP) included strategies to address operationalweaknesses and threatsidentified in an internal SWOT analysis.Missed deadlines,pending projects and ineffective internal communicationweredealtwiththroughcontractedexpertise.Thisimprovedinternal processes, customer services, operations and stakeholder reporting, as well as internal communicationwith information about the finalisation of a ManagementInformation System (MIS).

Weprioritisedandimprovedthefollowingoperationalareasduringtheperiodunderreview:

• Operational efficiency – achieved through improvedcommunication, bridging the silo culture, providingclarityaboutperformancemeasures,keyperformanceareasandplanningandensuringthatallstaffunderstandthelinkbetweentheirworkandtherestofthebranch,EWSETA and other SETAs, locally and in the provinces.

• Leveraging project management – achieved through clarifying project status, objectives, targets andoutcomes.

• Skillstransfer–achievedthroughsharinggoodpracticesandinnovationswithintheOperationsteam.

• Ownership(impliesempowerment)–achievedthrougharecognitionbyallstaffthatcontractsarelegallybindingdocuments and not merely agents in a transaction.

• Analysis of achievements from 2103/14 to 2016/17 (reflectedinTable2).

Our value proposition for 2020 borrows from the Tsonga idiom “mintrio mintiro ya bula bula” or “our work will speak for itself from now on”. We will inculcate an understanding that each employee is a brand ambassador for the EWSETA.


Tabl

e 2:

EW

SETA

Ann

ual P

erfo

rman

ce P

lan

targ

ets

and

achi

evem

ents

com

paris

on –

201

3 to

201

7

NSDS

IIIOutcome/Ou

tputs

2013

/201

420

14/2

015

2015

/201

620

16/2

017

Targ

etAc

hieve

men

tTa

rget

Achie

vem

ent

Targ

etAc

hieve

men

tTa

rget

Achie

vem

ent

Establishing

a

credibleins

titutional

mechanis

mforskills

plann

ing

Largefirm

s0

00

025

2350

18Medium

firms

00

00

2018

5022

Smalllevy-paying

firms

00

00

5065

6069

Incre

ase

acce

ss

to o

ccup

ation

ally-

direc

ted

prog

ram

mes

Unem

ploye

d en

terin

g lea

rner

ships

3,00

02,

993

3,50

03,

452

1,50

01,

760

1,80

02,

038

Unem

ployedenteringbursaries

630

853

850

9990

029

250

051

8Un

emplo

yed

ente

ring

inter

nship

s/wo

rkpla

ceexperien

ce62

01,

039

720

312

820

509

900

387

Unem

ployedenteringskills

prog

ram

mes

1,00

020

01,

500

708

600

1,86

170

01,

287

Unem

ploye

d co

mple

ted

learn

ersh

ips3,

000

820

3,50

01,

422

750

1,64

190

072

3Un

emplo

yedcomple

tedbursaries

630

085

00

450

271

250

0Un

emplo

yed

com

plete

d int

erns

hips/

workpla

ceexperien

ce62

00

720

030

00

450

110

Unem

ployedcomple

tedskills

prog

ram

mes

1,00

00

1,50

025

300

432

350

399

Artis

ans e

nter

ed1,

700

390

2,00

050

71,

500

1,53

31,

700

958

Artis

ans c

omple

ted

1,70

01,

841

2,00

036

041

939

320

043

3Workersentering

learnership

s2,

000

160

2,50

024

31,

000

998

800

866

Workersentering

bursaries

00

00

550

015

041

Workersentering

skillsprogram

mes

4,00

01,

141

400

1,89

21,

500

328

2,00

01,

040

Workerscom

pletedlea

rnerships

2,00

022

42,

500

986

500

337

400

654

Workerscom

pletedbursaries

00

00

500

050

0Workerscom

pletedskills

prog

ram

mes

4,00

02,

276

400

1,14

275

074

222

567

0

Cand

idacy

pro

gram

me

ente

red

00

00

00

200

Cand

idacy

pro

gram

me

com

plete

d 0

00

00

00

0Re

cogn

ition

of p

rior le

arnin

g (R

PL)

00

00

225

238

100

128


NSDS

IIIOutcome/Ou

tputs

2013

/201

420

14/2

015

2015

/201

620

16/2

017

Targ

etAc

hieve

men

tTa

rget

Achie

vem

ent

Targ

etAc

hieve

men

tTa

rget

Achie

vem

ent

Prom

oting

the

grow

thofapublic

TVET

coll

ege

syst

em

that

is re

spon

sive

to

sect

or, lo

cal, r

egion

al andnationalskills

need

s and

prio

rities

TVET

stud

ent p

lacem

ent e

nter

ed1,

500

704

2,00

020

1,00

018

350

32TV

ET st

uden

t plac

emen

t com

plete

d0

00

00

025

0Un

ivers

ities s

tude

nt p

lacem

ent

ente

red

400

020

08

300

050

72

Unive

rsitie

s stu

dent

plac

emen

t co

mple

ted

00

00

300

025

0

SETA

/TVE

T co

llege

par

tner

ships

188

102

513

57

SETA

/Univ

ersit

y par

tner

ships

0

00

02

32

3SE

TA/e

mplo

yer p

artn

ersh

ips

00

00

98

1010

LecturerDevelo

pmentP

rogram

me

ente

red

00

00

500

57

LecturerDevelo

pmentP

rogram

me

com

plete

d 0

00

050

05

4

NumberofSETAoffi

ceso

pened

00

00

00

00

Addressin

gthelow

lev

el of

yout

h an

d ad

ult la

ngua

ge a

nd

numeracys

killsto

enableaddition

altra

ining

AET

prog

ram

mes

ent

ered

100

010

00

100

010

050

AET

prog

ram

mes

com

plete

d10

00

100

010

00

3850

Enco

urag

ing a

nd

supp

ortin

g th

e co

oper

ative

s, sm

all

enterprises,w

orker

initia

tives

, NGO

and

co

mm

unity

train

ing

Initia

tives

Coop

erat

ives s

uppo

rted

101

1534

1012

305

Smallbusine

ssessu

pported

33

410

1031

209

NGOs

53

64

55

56

NLPE

s5

10

00

00

0CB

Os5

15

20

45

0Tr

ade

Union

s0

00

00

03

0Bu

ilding

car

eer

guida

nce

and

voca

tiona

l guid

ance

Care

er g

uidan

ce e

vent

s5

90

415

1215

15

NSDS

IIIprojec

ts

Numberofprovincia

landrural

proje

cts p

lanne

d0

00

08

310

10

Gove

rnan

ce

NumberofG

overnanceCh

arter

Reportssu

bmitte

d0

00

00

00

0

TOTA

LS28

,051

12,6

6725

,380

11,2

3214

,623

11,7

1512

,008

11,6

29


PROVINCIAL OPERATIONS The Provincial Operations Department is responsiblefor the decentralisation of operations and functions in all provinces. Activities include project implementation, reporting, monitoring and evaluation and contract management, as well as managing the provincialcommitment schedule. The EWSETA is currently active in four pilot provinces with a physical presence in theEastern Cape, North West, Free State and Western Cape.

The EWSETA’s provincial presence is being establishedacrossthecountryinaphasedapproachandbasedonareviewoftheefficiency,impactandfinancialviabilityofthepilotprovincialoffices.WearepartneringwithprovincialTVET colleges for office space, as aligned with theprescribedDHETmodel.Thefollowingspaceallocationshavebeenoffered/takenupduringthepastyear:

• UmfoloziTVETCollege,RichTeckCampus(RichardsBay)

• Gert Sibande offered office space, which – asindicatedabove–hasnotyetbeentakenup.

Strategically, the department exists to support the implementation of the EWSETA’s Strategic Plan and Annual Performance Plan in terms of discretionary grant-approved projects. The provinces are responsible forproject management conceptualisation, specifically for: • Contract management • Monitoring and evaluation site visits and the

establishmentofaprojectsteeringcommittee• Management of the Provincial Commitment schedule • Managingofpossibleprojectrisks• Reporting.

Our provincial operations are regarded as decentralised units of the Operations branch responsible for theimplementation the APP programmes 2, 3 and 4. Interdepartmental collaboration within the EWSETA iscriticaltocoordinatingprovincialsupportforstakeholders.

SKILLSDEVELOPMENTANDPLANNINGThe complexity of South Africa’s skills developmentchallenge includesanexcessivelyhighrateof26.6%or5,8million(StatisticsSA,2016)unemployedpeople,withascarcityofskillsacrossmanyoccupations.

In South Africa’s energy and water sectors, the direneedforskilledengineers,scientistsandartisanshastocompetewithanequallyhighdemandforskillsinsectorssuch as manufacturing, construction, chemicals and local government. Traditional approaches to production and resource management, anticipating future skills needsandtheuseofnewICTsystemsareallunderpressure.Thechallengeistoachieveaworkablebalancebetweenmeeting current needs andbeingprepared for those inthe future.

The role of the Skills Planning and DevelopmentDepartment is to manage the employer Work SkillsPlan (WSP) and Annual Training Report (ATR) processes and strategically drive planning, research and skillsdevelopment to ensure that the EWSETA meets its mandate.

TheupdatingoftheSectorSkillsPlan(SSP)andPIVOTALSkillsListincludedinterventionstoaddressscarceskills.TheWSPs/ATRsformedalargepartoftheprocess,whileinterviewswere also heldwith key sector stakeholders.TheSPPwasendorsedbytheSkillsPlanningCommitteeandapprovedbytheEWSETABoard.

ThequalityofdatainthesubmittedWSPs/ATRscontinuedtoimprove.Employerscollectedandsubmittedindividualrather than aggregated employee data to enhance data accuracy, reliability and consistency. Employers werecompelledtoattendtotheskillsneedsofeveryemployeein the workplace. We supported this process throughtrainingworkshopsatvariousvenuesacrossthecountry,aswellasprovidingone-on-onetrainingandsupport.Thebenefitsofsuchaprocessaccrueinafarmoreaccurateprojectionofscarceskillsoccupations.


QUALITYASSURANCEANDCOMPLIANCE(QA&C)Ensuringthatskillsdevelopmentproviders(SDPs) intheEWSETAsectorare reliable,capableandwell-equippedwith the knowledge, skills and physical resources todeliver quality training remains a challenge. The QA&C department receives numerous complaints from learners aboutsub-standardservicesfromSDPswhoarefundedthrough a variety of channels.

A specific concern during the past year has been thatsomeunderperformingSDPspresentEWSETAlettersofaccreditation and receive EWSETA funding. In mitigation, wehaveprioritisedthereview,monitoringandevaluationof SDP accreditation to ensure that thosewho use theEWSETAlogoaredulyaccreditedandadheretoallDHET,QCTO and SAQA training regulations. In the forthcoming period,wewillensurethatonlyverifiedaccreditedSDPsreceive funding and participate in funded programmes.

STAKEHOLDERPARTICIPATION

During the 2016/17 reporting period, 37 SDPs wereaccredited/reaccredited for energy qualifications and 14 forwaterqualifications.Ofthese:

• 66% (31) private SDPs and 19% (7) public SDPswereaccreditedforenergyqualifications

• 15% (9) private SDPs were accredited for waterqualificationsand8%(4)publicSDPswereaccreditedforbothenergyandwaterqualifications(dual)

• No public SDPs received accreditation for waterqualifications only.

A further concern is the low uptake among Technicaland Vocational Education and Training (TVET) colleges and SOEs in offering EWSETA qualifications. Given the significantdemandforskilledworkers intheenergyandwater sectors, especiallywhenboth sectors are criticalto our country’s socio-economic growth, developmentandindeedsurvival,greaterpublicsectorparticipationindeveloping energy andwater sector qualifications is animperative.

SDPACCREDITATION

We consistently ensure that SDPs are accredited andhave access to our accreditation renewal service, asrequiredbyourstakeholders.

SincethenumberofnewSDPaccreditationapplicationscannot be anticipated ahead of the financial year andcould, therefore,haveanadverseeffectonourbudget,weusethenumberofnewapplicantsannuallytoprojecta figure for the next financial year. Our focus on strategic planning for improved performance ensured that, during the past financial year, our resourceswere sufficient toremain up-to-date with new applications. We visited,accreditedandreaccredited51SDPsagainstEWSETA-SAQAunitstandard-basedqualifications.


Table 3: SDPs audited and accredited during the 2016/17 financial period

Provider class*Provider name Province Water Energy

Energy & WaterPrivate Public

1 AquaDactics G P

2 P Ontec Systems (Pty) Ltd WC P

3 P Consolidated Training SA LIMP P

4 P West Coast TVET College, Altantis Campus WC P

5 P West Coast TVET College, Citrusdal Campus WC P

6 P WestCoastTVETCollege,VredenburgCampus WC P

7 P West Coast TVET College, Vredendal Campus WC P

8 P Hizonex (Pty) Ltd EC P

9 P KelvinPower(Pty)Ltd G P

10 PElectrical Contractors Association of South Africa,Johannesburg

G P

11 P AberdareCables(Pty)Ltd G P

12 P EskomKusilePowerStationOperations MP P

13 P Leps Training Provider NW P

14 P ZuvaEnergySolutions(Pty)Ltd WC P

15 P CirclewayTraining(Pty)Ltd MP P

16 P TPN Training & Recruitment G P

17 P Jeppe College G P

18 P NEMTEK Training G P

19 P John Thompson - A division of ACTOM (Pty) Ltd WC P

20 P VinceDavies&Associates WC P

21 P Heatherdale Electrical G P

22 PEskomMedupiPowerStationOperationsTraining

LIMP P

23 P IthembaInstituteofTechnology G P

24 P Majoncar Projects & Training Academy (Pty) Ltd LIMP P

25 P DurbanUniversityofTechnology KZN P

26 P NorthlinkTVETCollege,BelharCampus WC P

27 P BlackenCollege G P

28 P Madz Electrical LIMP P

29 P SkillsProficiencyTrainingSolutions EC P

30 P WCEM Projects and Training EC P

31 P Topo Class Training LIMP P

32 P MCDTrainingCentre(Pty)Ltd G P

33 P LekopaneCentreofExcellence G P

34 P EskomKomatiPowerStation MP P

35 P FalseBayCollege,WestlakeCampus WC P

36 P NkabelengGeneralConstruction LIMP P

37 P Matukane&Associates LIMP P

38 P EskomMajubaPowerStation MP P

39 P SkillsInternationalTraining G P

40 P MakhokhaSuppliers KZN P

41 P Riverport Training Academy EC P

42 P NationalLaboratoryAssociation G P

43 P Khosithi Training MP P


Provider class*Provider name Province Water Energy

Energy & WaterPrivate Public

44 P CityPower G P

45 P The SAJ Competency Training Institute G P

46 P SSDConsultant EC P

47 P Arbinet EC P

48 P BuffaloCityCollege EC P

49 P PortElizabethTVETCollege EC P

50 P IzibukoTheBridgeInvestmentsandProjects G P

51 P EkurhuleniWater,Benoni G P

Total 37 14 7 40 4

*Note: The ‘Public’ provider includes State-owned Enterprises (SOEs)

Figure 1: SDP accreditation per sector during the 2016’17 financial year

Figure 2: Number of SDPs accredited in the water and energy sectors during the reporting period.

WATER:

14ENERGY:

37

SECTORAL PARTICIPATION: ACCREDITATION

2016/17

Private Energy: 61%Private Water: 14%PublicEnergy:17%PublicEnergyandWater:8%


QUALIFICATIONDEVELOPMENT

We continued with the QCTO-delegated function tocoordinate and manage the qualification development process and developed 13 qualifications during the 2016/17 financial period.

WATER QUALIFICATIONS

Table 4: New occupational qualifications for the water sector 2016/17

OFO TITLE335905 WaterInspector(Water-useOfficer)213302 Environmental Scientist (Water-use Specialist134901 Environmental Manager (Water Resource Man-

ager)313203 Water Process Controller (Water Superintendent)

Table 5: Additional water qualifications developed and submitted for QCTO approval and SAQA registration 2016/17

OFO TITLE STATUS313201 Water Plant Operator

(Industrial Water Plant Operator)

Developmentcomplete;submittedtoQCTOforratification;tobesubmittedforSAQAregistration

313203 Water Process Controller (Industrial Water Process Controller)

Developmentcomplete;submittedtoQCTOforratification;tobesubmittedforSAQAregistration

Table 6: Qualifications Gazetted for public comment 2016/17

OFO TITLE STATUS213306 Water Quality

AnalystAwaitingpubliccommentand SAQA registration

The following application to develop an OccupationalQualificationwasrejectedbyQCTOandthematterisduefor appeal.

Table 7: Developed and rejected qualification due for appeal

OFO TITLE STATUS335905 WaterInspector(Bulk

Water Infrastructure Operator)

ApplicationrejectedbyQCTO: Reason:Insufficientdemand

The EWSETA also entered into an agreement with theStellenboschUniversityWaterInstitute(SUWI)todeveloptheWaterSuperintendentoccupationalqualificationwiththe intention of developing TVET college lecturers and building management capacity within the water sector.Thus far, the project is successful.

WATERSTAKEHOLDERSINVOLVEDINOCCUPATIONALCURRICULAANDQUALIFICATIONSDEVELOPMENT

Ourkeystakeholderswhoparticipatedinandsupportedthe development of the occupational curricula and qualifications during the past year included the DWS,CSIR, Stellenbosch University, municipalities, TVETcolleges, Rand Water, WISA and SAMWU.

ENERGYQUALIFICATIONS

We submitted six occupational qualifications for theenergy sector for QCTO recommendation and registration, asreflectedinTable8.

Table 8: Occupational qualifications submitted for QCTO recommendation and registration 2016/17

OFO CODE TITLE313102 FossilPowerPlantProcess(Operator)313103 HydroPowerPlantProcess(Operator)313104 NuclearPowerPlantProcess(Operator)671302 CableJointer(ElectricCableJointer)313106 ConcentratingSolarPowerPlantProcess

Controller671102 Electrical Installation Inspector

The following qualification was developed and requiresonlyafinaljointworkinggroupsessiontobefinalised.


Table 9: Qualification developed and awaiting finalisation

OFO CODE TITLE311104 Radiation Control/ Nuclear Monitoring

Technician

Energy stakeholders involved in occupational curricula and qualifications development

A number of key stakeholders participated in andsupported the development of the occupational curricula and qualifications in the energy sector. These wereESKOM, Nuclear Energy Council of South Africa (NECSA), DurbanUniversityofTechnology(DUT),NationalNuclearRegulator (NNR), Southern African Revenue Protection Association (SARPA), National Union of Mineworkers(NUM), North-West University (NWU) and the South AfricanInstituteforNon-DestructiveTesting(NDT).

ASSESSMENTQUALITYPROVIDER(AQP)ACTIVITIESANDPROGRESS

The EWSETA is an QCTO-delegated AQP that implements and oversees AQP responsibilities according to QCTOpolicies.AnAQPisanentitytowhichqualityassurancefunctions are delegated that are specific to occupational qualifications under the auspices of QCTO. As such, we have to ensure that the qualifications for which wehave AQP status contain assessment specification tools, implementationblueprintsandrelatedaddenda.

During the past year, we completed and forwarded arange of qualifications assessment tools and related documentation to the QCTO for evaluation and approval. ThequalificationsarelistedinTable10.

Table 10: Qualifications developed and awaiting QCTO evaluation and approval 2016/17

OFO TITLE313201 Water Plant Operator (Industrial Water Plant

Operator)313203 Water Process Controller (Industrial Water

Process Controller)

We take pride in this achievement, which reflects ourprogress beyond the final stage of all DQP and AQPdevelopmentresponsibilities.Theresultofhardworkandperseveranceisthattheindustrycannowimplementtheabove-mentionedqualificationsandthroughRPL,dignifypreviously disadvantaged workers within the industrywhocouldnotachievearecognisedqualification.

Goingforward,incollaborationwithourstakeholders,wewillfinalisetheaccreditationprocessandidentifysuitablelearningmaterialfortherolloutofthequalifications.SDPswillbecapacitatedasnotallofthemhavebeenpartytothe development process.

SPECIAL PROJECTSWar on Leaks (WoL) Project with National Technical Vocational Education and Training (TVET) Colleges and Private Skills Development Providers

The intentionwith the ‘WaronLeaks’project is to train 15,000 artisans between 2016 and 2018. The fivetargeted trades are:

Table 11: Trades targeted for War on Leaks artisan training

Trade SAQA Qualification ID

1 Welder 94100

2 Fitter & Turner 94020

3 Instrument Mechanic 94701

4 Plumber 91782

5 Electrician 91761

Compliance with EWSETA and QCTO accreditationrequirementsbypublic TVETs andSDPswere checkedthrough due diligence visits to assess capacity and assist TVETswithbecomingbeneficiaries for thenationalWoLproject.

By December 2015, 26 TVETs had been audited forQCTO accreditation and with EWSETA assistance, thenumber continues to grow steadily. This achievementconfirms our commitment to supporting TVET colleges.

TheEWSETAQA&CDepartmentwishes to again thankourvaluedstakeholderswhoare instrumental inhelpingus to achieve our goals. The support encourages us to reach for even greater heights in improving our performance in the year ahead.


SKILLSDELIVERYThe responsibilities of the Skills Delivery Departmentinclude organisational reporting and registering learners in the MIS. The department is also responsible forthe archiving and records unit to ensure that stored informationisavailablewhenneeded.

Duringtheperiodunderreview,weregisteredmorethan5,000 learners on various PIVOTAL learning programmes that are linked to our scarce and critical skills list, asidentifiedintheEWSETAsectorskillsplanningdocument.

The following figuresdepictskillsdeliveryachievementsfor learners enrolled in various skills developmentprogrammes and implemented in the different provinces.

Figure 3: Total of 2,038 unemployed learners enrolled in occupationally-directed learnership programmes.

Figure 4: Total of 866 employed learners enrolled in occupationally-directed learnership programmes.

Northern Cape: 23%Western Cape: 3%Eastern Cape: 6%Free State: 7%Gauteng: 6%KwaZulu-Natal:9%Limpopo: 19%Mpumalanga: 13%North West: 14%

North West: 12%Northern Cape: 1%Western Cape: 7%Eastern Cape: 14%Free State: 6%Gauteng: 15%KwaZulu-Natal:12%Limpopo: 20%Mpumalanga: 13%


Figure 5: Total of 1,287 unemployed learners enrolled in skills programmes.

Figure 6: Total of 387 graduates enrolled in internship programmes.

North West: 1%Eastern Cape: 8%Gauteng: 26%KwaZulu-Natal:9%Limpopo: 34%Mpumalanga: 22%

North West: 1%Free State: 5%Gauteng: 78%Limpopo: 1%Mpumalanga: 15%


“Our aim is to administer skills development that supports the broad national economic priorities ofempowering the unemployed, marginalised and disabled youth and undergraduate learners, especially those in rural and urban communities, to participate gainfully in the local economy.”

PROJECT MANAGEMENTThe EWSETA has improved the disbursement ofpayments to increaseproject deliverywithin the energyandwater services sectors. Currently theDepartment’sactivitiescover194projectswithacombinedfundingofR1,395billion.Effectiveprojectmanagementiscriticaltoensuring that the funding is used as intended.

Theoveralloutcomesofthedepartmentcanbedeemedasprogressivebasedon:

• Greaterclaritybetweencommitmentschedulesandpayments

• Improved data integrity• Significant improvements in the registry function• Improved access to information and management

reporting.

Weapprovedanumberofspecialprojects,alignedwiththe NSDS III, to achieve our objectives and respondto the scarce and critical skills needswithin the labourmarket. The aim is to administer skills developmentthat supports the broad national economic priorities ofempoweringtheunemployed,marginalisedanddisabledyouth and undergraduate learners, especially those in rural and urban communities, to participate gainfully inthe local economy.

We also engaged employers and training providers, including institutions of higher learning, on skillsdevelopment-relatedmattersandreviewedourresources,systems and processes to accelerate and enhance the qualityof servicedelivery tomeetandexceedNSDS IIItargets.


OPERATIONS OUTLOOKTheOperationsbranchwillcontinuewith theactivitieswe prioritised and actioned in 2016/17 to retain thepositive momentum of our interventions. Strategic planningremainsthekeytoimprovingourperformance,whileweadheretotheBatho Pele (people first) principles and recommit to moving the organisation towardssuccessive clean audits and top-level performance as aleadingauthorityinskillsdevelopmentandtraininginour sector.

Ourvalueproposition for2020 iscurrentlybeingpreparedand borrows from the Tsonga idiom “mintrio mintiro ya bula bula” or “ourworkwill speak for itself fromnowon”.AspecificfocusistoinculcateanunderstandingwithintheOperationsbranchthateachemployeerepresentstheOfficeoftheCOOandisabrandambassadorfortheEWSETA.

I feelgratifiedbytheenthusiasticandpositiveresponsefrom employees and thank them for the vigour andcommitment with which they have taken ownershipof their responsibilities and their impact on others inthe organisation. I also thank them for their supportand resilient pursuit of improved strategic planning for improved performance.

Mr Ineeleng MoleteChief Operations OfficerJuly 2017

Table 12: Commitment schedule comparison from 2015/16 to 2016/17

CLOSING BALANCE2015/16 Closing balance (R’000)

Closing balance (R’000)

ABET Programme 274,095 264,095 Apprenticeship Programme 11,101,125 18,910,500 Bursaries Programme 3,756,095 21,698,880 Internship Programme 20,671,310 12,709,310 Learnership Programme 2,339,574 45,083,765 Matric Intervention Programme 0 3,600,000 SkillsProgramme 312,000 12,030,500 Special Projects 128,257,230 68,201,313

166,711,429 182,498,362

APPROVED PROJECTS2015/16 Additional

commitments (R’000)2016/17 Additional

commitments (R’000)ABET Programme 280,000 375,000 Apprenticeship Programme 13,726,350 13,800,000 Bursaries Programme 20,635,000 21,078,198 Internship Programme 27,540,000 15,060,000 Learnership Programme 2,605,000 72,881,000 Matric Intervention Programme 0 9,000,000 SkillsProgramme 312,000 20,954,500 Special Projects 66,745,047 24,308,634

131,843,397 177,457,332


PARTDSECTOR

COLLABORATION AND

STAKEHOLDER ENGAGEMENT


SECTORALCOLLABORATIONANDSTAKEHOLDERENGAGEMENT(SC&SE)EXECUTIVEOVERVIEW

MS TSHOLOFELO MOKOTEDI (ACTING)

“Stakeholderengagementisanorganisationalprocessthatinvolvespeoplewhoaffectorareaffectedbythedecisionsoftheorganisation.Theymaysupportoropposethedecisions,beinfluentialinthe

organisationorwithinthecommunityinwhichitoperates,holdrelevantofficialpositionsorbeaffectedinthelong-term.”

Establishedin2013,theEWSETA’sSectoralCollaborationandStakeholderEngagement(SC&SE)branchsupportsthe EWSETA in giving effect to its mandate. Our three-pronged purpose is to:

• lead the collaboration between stakeholders,sectors and internal functions to support the implementationof theNationalSkillsDevelopmentStrategy(NSDSIII)

• optimise stakeholder engagement, collaborationand satisfaction by interpreting the latest sectortrends, leveraging available data and engagingall components in the delivery of best practicedevelopment solutions, and

• lead staff delivery and stakeholder engagementproactivelytoensurethatbothinternalandexternalstakeholder collaboration and engagement needsare met fully.

We give effect to our purpose through the followingobjectives:

• Lead and guide internal and external stakeholdercollaborationandensurealignmentacrossfunctionsintheirinteractionwithexternalstakeholders.

• Lobbystakeholdersandadvocateforthesuccessfulexecution of sector skills development strategiesby highlighting the EWSETA’s value creation andimprovedcredibilityandservicedelivery.


• Find alternative sources of revenue and harness funding from potential investors, paying clients, donors, sponsors and private or public sectorpartners through value-adding relationships.

• Influence stakeholder sentiment towards theEWSETAtobuildapositivebrandimageandmitigatereputationriskthrougheffectivecommunication.

• Create a healthy, committed and positive department tocontributetoaprogressiveorganisation.

ACHIEVEMENTSANDCHALLENGESWe implemented a range of activities during the reporting period to meet the SC&SE targets in the Annual Performance Report, as reflected in Table 1.These included, inter alia, inter-SETA levymanagement;establishment of energy and water sector chambers;collaborativeagreementswithemployers,TVETcollegesanduniversities;andprovidingsupportforcooperatives,SMMEs, NGOs and CBOs.

Thefollowingaresomeofthekeyachievementsrecordedfortheperiodunderreview:

COLLABORATIONANDPARTNERSHIPS

During the past year, we signed collaboration andservice level agreementswith key stakeholders todrivethe implementation of the NSDS III and our AnnualPerformance Plan.

Thefollowingaresomeofourstakeholderprojectswithfinancial commitments:

Ingen Engineering, a small, young and dynamic black engineering business with whom the EWSETApartnered to create integrated learning opportunities for young people. This is part of our larger strategic drive to involve small businesses in skills developmentand training. Ingen’s internship programme consist of 10 University and University of Technology students enrolled in various disciplines, from mechanical, civil and chemical engineering to biochemistry, biotechnologyandbiochemistry. The 15-month programme, valued at R900,000 started in March 2017 and runs to June 2018.

East Rand Water Care Company (ERWAT) is a large, levy paying wastewater company that provides bulkwastewater conveyancing and a highly technical andproficientwastewatertreatmentservice.ERWATcurrentlyoversees 19 wastewater works and is a long-standing

EWSETA partner. The partnership currently includes the followingprojects:

• 15-month internships for 12 unemployed University graduates – R1,080,000

• 5-month internships for 18 unemployed University of Technology graduates – R1,620,000

• Bursaries for nine University and University of Technology employed students – R560,000

• Artisan development for two employed learners –R300,000

• Technical learnerships for one Instrument Mechanic and four Mechanical Fitters, all employed learners – R750,000

• Learnerships for 20 unemployed learners in Wastewater Reticulation Services (NQF 2) –R720,000.

STAKEHOLDERAGREEMENTS/COLLABORATION

TheEWSETAenteredintoagreementswiththefollowingstakeholderswithnoinitialfinancialcommitments:

South African International Maritime Institute (SAIMI), a non-profit organisation that promotes and facilitates skills development, education, training andresearch for “Blue Economy” maritime development initiatives. These include Operation Phakisa and theAfrican Union’s African Integrated Maritime Strategy. The EWSETA’s interest in this regard is primarily in the oil and gassubsectorsoftheenergysector.

Sedibeng Technical Vocational, Education and Training (TVET) College to support the ‘It’s Cool to be an Artisan’ campaign through a Memorandum ofAgreement.TheDHET,ascampaigncustodian,identifiedtheEWSETAandSedibengTVETCollegeasthefundingand hosting entities, respectively. The successful roll-out of the 2014-2024Decade of the Artisan campaigninGauteng inOctober 2016 created a platform for theEWSETA to mobilise employer participation in work-integrated learning programmes, particularly for the War onLeaksartisandevelopmentproject.

EMPLOYERCOLLABORATION

Thefollowingcollaborativeagreementsweresignedwithemployerswithnoinitialfinancialcommitments:

Atos Pty Ltd, electro-hydraulic technology specialists, to provideprivateindustrywithskillsdevelopmenttraining.


Colliery Training College (CTC) Pty Ltd, a skillstrainingproviderthatcollaborateswithSETAstourgentlydevelopartisanskillsandincreasethenationalskillspool.

Institute of Plumbing South Africa (IOPSA), the industry oversight body that leads professionalisation,as a partner in initiatives such as the registration of a learnershipforplumbers.

Mitochondria, a sustainable energy services provider,EWSETA levy payer and contributor to sector skillsplanning,specificallyinrenewableenergy.

National Nuclear Regulator (NNR),apublicentitythatsets safety standards and regulatory practices to protect persons, property and the environment against nuclear damage,asapartnertocreateawell-trainedworkforcefor the nuclear sector.

South African National Energy Development Institute (SANEDI), a Schedule 3A state-owned entitythat directs, monitors and conducts applied energy research, development, demonstration and deployment andpromotesgreenenergyandenergyefficiency,whosecollaborationwiththeEWSETAwillsupportourstrategicpriorities.

University of Cape Town, renowned worldwidefor research and innovation, to bring institutions ofhigher learning into the sector and encourage closer collaborationbetweentheseinstitutions.

ENGAGEMENTSWITHCIVILSOCIETY

Women in Oil and Energy South Africa (WOESA), to confirmandactionoursupportforwomenintheenergysectorasakeytransformationalimperative.

SKILLSDEVELOPMENTPROVIDERS

World Water Academy, a leading training institute for water management in the Netherlands and abroadthat develops and organises training courses for waterprofessionals.OurpartnershipsinceNovember2016willcontributetothesupplyofmiddle-levelskillsinthewatersector.

PARTNERSHIP ENGAGEMENTS (CONFERENCES/CONVENTIONS/SEMINARS)

The attendance of SC&SE representatives at conferences, conventions and seminars gave effect to ourpartnershipprogrammeandresultedinanumberofnew partnerships. We used the opportunities to lobbysector stakeholder support for implementingour sectorstrategy more effectively. A substantial amount of timewas spent providing stakeholders with information thatillustratesvaluecreationandcredibility.Wewillcontinueto engage and collaborate with interested parties tomeetourNSDSIIItargetsandimplementtheEWSETA’sperformance plan.

The following is a brief description of some of theinterventions.AcomprehensivelistisreflectedinTable7.

Support for science, technology, engineering and mathematics: The EWSETA supported the Techno Girl Business Breakfast to promote science, technology,engineering and maths (STEM) subjects among girls.Techno Girl has become a flagship initiative supportedbygovernment, internationaldevelopmentorganisationsand business to create opportunities for young girls toparticipate meaningfully in the economy. The programme is led byUWESOConsulting, one of our long-standingcollaborationpartners.ESKOMhascommittedtohosting1000TechnoGirlsforjobshadowingandwewillexploreprojectpartnershipswithotherrelevantSETAstosupportthe programme.

11th Institute of Plumbing South Africa (IOPSA) conference: Our first participation in this event, held from15-16September2016andattendedbysomeWaronLeakslearners,resultedinacollaborativeagreementwithIOPSA.

Youth Energy Indaba: TheEWSETApartneredwiththeDepartmentofEnergy(DoE),SouthAfricanNuclearEnergyCorporation (NECSA), Nuclear Industry Association of South Africa (NIASA) and Coega DevelopmentCorporation(CDC)tohosttheinauguralAnnualYouthinEnergy Indaba (YEI) from 20-21October 2016 (refer topage 69 for further information).


SOUTHAFRICANENERGYEFFICIENCYCONVENTION 2016

WepartneredwiththeSouthAfricanIndependentPowerProducers (SAIPPA) to host a side event at the South African Energy Efficiency Convention (SAEEC 2016). The event offered awide range of stakeholder engagementopportunities at the EWSETA exhibition stand. TheEWSETA received a Skills Development Award at theawardsceremony.

Green Action Platform (GAP-SA/Italy): This platform has been on the green technologies horizon locallysince Roncucci & Partners (R&P) started operating in South Africa four years ago. The R&P Chairperson and EWSETACEOinitiatedthestrategicpartnershipbetweenR&P, the National Research Council-Italy (CNR), Emilia-Romagna Region and EWSETA to host the Italian Green Technologies for Africa Symposium in August 2016. The event, held under the auspices of the Italian Ministry of Environment and South African Ministry of Water and Sanitation, supported by water-related agencies andfunding bodies of the Department of EnvironmentalAffairs (DEA),attractedmore than80publicandprivatesectorparticipantsfrombothcountries.

TheEWSETAalsopartneredwiththeR.E.PInternationalBusiness Development Group in Italy to host a GreenAction Platform Symposium in November 2016, with afocusonthesmallbusinessdevelopmentsector.Theeventclarified the role and value of the GAP-SA/Italy initiative in termsoflocalandforeigndevelopmentmarkets,researchand development (R&D), education, training and skillsdevelopment and funding opportunities. Implementation until June 2017 will focus on connecting institutionalR&D,trainingandentrepreneurshippartnerships.

Africa Energy Indaba: The EWSETA participated in robustengagementandotherinteractionsattheIndaba(further information in the Corporate Services Executive Overviewonpage61).

Power and Electricity World Conference: In March 2017, we sponsored the PEWA 2017 conference thatattracted 8,000 delegates, 800 international VIPs and 300speakers.Theeventconsistedofthought-provokingkeynote presentations, practical case studies, countryspotlights and numerous roundtable and workshopdiscussions presented and/or facilitated by industryleaders.

The EWSETA’s participation included:

• aworkshopwithinvitedstakeholders,primarilylevypayers, cooperatives and small businesses, whoreceived full accreditation for the entire conference, which added to their Continuous ProfessionalDevelopmentpoints

• presentations at various parallel sessions repeated during the two-day event that addressed powergeneration, energy efficiency, transmission and distributionandsolarenergy

• aspeakeropportunityattheWaterShowsideevent• the launch of the EWSETA’s EnergyDrive Bus to

exhibitors and visitors, with the opportunity topresent Durban University of Technology (DUT)initiatives and educate stakeholders about climatechange and alternative energy sources.

National Skills Conference 2017: We supported the conference, held recently under the auspices of the National Skills Authority, to improve stakeholderperceptionsabouttheSETAandthroughtheparticipationofourexecutivemembersintheSteeringCommitteeandContents Committee for the event.

SOMEHIGHLIGHTSANDCHALLENGES

During the past year, our stakeholder engagementsincluded participation in strategically relevant events, collaborativeagreementswith,inter alia, the South African NationalEnergyDevelopmentInstitute(SANEDI),WomeninOilandEnergySouthAfrica (WOESA),DepartmentofSmallBusinessDevelopment(DSBD)andNationalNuclearRegulator(NNR),aswellassector-specificdiscretionarygrant partnerships to deliver projects more effectively. For the first time in 2017, through these partnerships, we participated in the South African Energy EfficiencyConvention(SAEEC)andthePowerandElectricityAfricaWorld Conference.

Ourstakeholderroadshowswereparticularlysuccessful.These included a partnership with the South AfricanIndependentPowerProducers(SAIPPA)toparticipateinanumberofnewlocal,regional(SADC)andinternationalevents.


Since the inception of the Branch, budget constraintsprecludedtheappointmentofmorethanfiveofanenvisagedcomplementof15employees. In the forthcomingfinancialyear,however,wehopetoappointtwospecialistsinelectricityandrenewableenergy,aswellasanadministrator.Thiswillincreaseourstaffcomplementtoabove50%and improveour ability to engage and collaborate with stakeholdersacrossallsubsectorsintheenergyandwatersectors.

INCREASEINLEVYINCOME

The fact that more than half of the levies potentially due to the EWSETA are paid to other SETAs, exacerbatesourbudgetconstraints.Thisisduemainlytoerroneouslyallocated Standard Industrial Classification (SIC) codes. These recently revised codes are determined by the

Minister of Higher Education and Training to identify SETA sectors and relatedly, the potential pools of levy payers foreachSETA.The revisedcodesnowalso identify thenumberoflevypayerspercode.

Table6reflectsSkillsDevelopmentLevyPayers(SDLPs)registered under the energy sector SIC codes and levies payed to the EWSETA versus participation in skillsplanning through the submission of a Workplace SkillsPlan(WSP).Thetableaddressestheenergysectoronly,primarilybecauseitconstitutes75%ofleviespaidtotheEWSETA.

Only14%ofemployers in theenergysectorparticipateactivelyinplanningtoaddressthedemandforscareskillsin the energy sector.

Table 13: Standard Industrial Classification (SIC) codes for the energy sector and the EWSETA’s sector coverage of levies and Workplace Skills Plans (WSPs)

SIC code Industry Sector SDL registered

Number of levies paid to

EWSETA

WSPs submitted

by levy payers

% WSPs submitted

vs number of levy payers

ENERGYSECTOR(includinggas)

41111 Generation of energy Energy 407 104 15 3.6

41112 Distributionofpurchasedelectricenergy Energy 87 40 10 11.4

41114 Generationofrenewableenergy Energy 140 102 7 5

41115 Transmission of energy Energy 26 10 1 3.8

41116 Project management, maintenance and operation of electrical generation, transmissionanddistributionplants,networksandsystems

Energy 355 168 37 10.4

41118 Marketingofelectricity Energy 115 32 2 1.7

41200 Manufactureofgas;distributionofgaseous fuels through mains

Energy 181 74 7 3.8

41300 Steamandhotwatersupply Energy 22 5 0 0

50222 Construction of pylons for electric transmission lines

Energy 39 18 1 2.5

87141 Industrial research for electrical energy Energy 78 24 1 1.2

TOTAL 1,450 607 85 14


The2017/18stakeholderengagementstrategywilltargetprimarily large and medium firms that pay levies under the energy andwater sectorSIC codes and submitWSPs.Employers that pay levies to other SETAs will also belobbied to ensure that their levies are registered underthe correct sic codes. The aim of this engagement is to increase the EWSETA’s levy revenue significantly.

We will also focus on ensuring that collaborativeagreements clearly state the areas of collaboration andthat partnerships culminate in the co-funding of strategic projects.

WATER SECTOR DEPARTMENTUnder the aegis of the Sectoral Collaboration andStakeholder Engagement Branch, the EWSETA’sWaterSector Department started developing strategic, long-term relationships with key stakeholders and skillsdevelopment partners. Our partnerships are driven bytheneed to create a skills pipeline for thewater sectorand combine our skills planning and the sector’s skillsdevelopment,whichwesupportwithintheNSDSIII.

PARTNERSHIPS

Our partnerships usually evolve from long-standing relationships with key stakeholders across all sectors.Certainly, our partnership agreement with the WaterResearch Commission was a highlight during the pastyear.Asournewlyestablishedbranchgainsmomentum,meetings with the Water Institute of Southern Africa(WISA),DepartmentofWaterandSanitation (DWS)andprivateindustrypartners,havebecomemoreregularandstrategic in their intent.

One of the key platforms for sector partnerships andstakeholder interactions are conferences, symposia,workshopsandothersimilarevents.Government,privateindustry, TVET colleges, Universities and learners all get together at these events.

Table 14 lists the water sector events in which theEWSETA participated. In many cases, our sponsorship enabled not-for-profit conferences to go ahead anddecreased conference costs to the extent that community organisations, learners and other more marginalised players in the sector could attend.

Table 14: Stakeholder engagements and partnerships

Event Organiser/partner Date Province

2016

Hack4Water DepartmentofWaterandSanitation(DWS)

21-22 Apr Gauteng

WISA Biennial Conference Water Institute of Southern Africa (WISA)

15-19 May KwaZulu-Natal

SAICEAquaLibriumSchoolsWaterCompetition 2017

South African Institution of Civil Engineering (SAICE)

29 Jul Gauteng

Women in Water WISAWaterScienceDivision 18 Aug Gauteng

6thRegionalAfricaWaterLeakageSummit 2016

WPC Engineers 23-24 Aug Gauteng

WorldPlumbingConferenceIOPSA WorldPlumbingCouncil 14-16 Sep Western Cape

NSTF Conference National Science and Technology Foundation (NSTF)

26-27 Sep Gauteng


Event Organiser/partner Date Province

Challenges and solutions in managing SouthAfrica’swatersector

WISA 27 Sep Gauteng

CoegaIDZSkillsSummit–FirstSteering Committee meeting

CoegaIndustrialDevelopmentZone(IDZ)

30 Sep Eastern Cape

ImvelisiEnviropreneurshipWorkshops DepartmentofEnvironmentalAffairs(DEA)

10 Oct Limpopo

Nationaldialogue/SeminaronPotableWater Reuse to improve informed publicengagement

WISAWaterScienceDivisionWaterResearch Commission (WRC)

11-12 Oct Western Cape

9th Annual International SATN Conference

South African National Technology Network(SATN)

12-13 Oct Western Cape

DecadeoftheArtisan SedibengTVETCollegeDepartmentofHigherEducationandTraining(DHET)

13-14 Oct Gauteng

ImvelisiEnviropreneurshipWorkshops DepartmentofEnvironmentalAffairs(DEA)

17 Oct Northern Cape

Green Action Platform (GAP) Symposium

Roncucci & Partners 18-19 Oct Gauteng

YouthinEnergyIndabaConference Relevant Media Concepts 19-21 Oct Eastern Cape

11th Annual Southern African Energy EfficiencyConference

Timzama 8-9 Nov Gauteng

Kingfisherproject DWS 21 Nov Gauteng

ProcessControllerOpenDay WISAProcessControllerDivision 30 Nov- 1Dec

Western Cape

2017

FoodandBeverageSETAWorkshop Food and Beverage SETA 9Feb Western Cape

Harnessing Water and Sanitation Engineering Ideas

DepartmentofScienceandTechnology(DST)

16Feb Gauteng

FETWATERWorkshop FrameworkProgrammeforResearch,Education and Training in the Water Sector (FETWATER)

17Feb Gauteng

AfricaEnergyIndaba AfricaEnergyIndaba 21-22Feb Gauteng

South African National Committee UNESCO International Hydrological Programme (IHP) Symposium

WRC 14 Mar Gauteng

UnitedNationsWorldWaterDay DWS 22-24 Mar KwaZulu-Natal

PowerandElectricityWorldAfrica(Water Seminar)

Terrapinn 27-29 Mar Gauteng

3rdAnnualGreenYouthIndaba TOSACO Communications April Gauteng


SUPPORTINGCIVILSOCIETY

We supported 23 municipal officials, Technical and Vocational Education and Training (TVET) College educators and non-governmental organisation (NGO) representatives to attend the Water Governance for Water Leaders short course at the Stellenbosch University’sSchool for Public Leadership (SPL) andWater Institute(SUWI)from6-10February2017.

TheSPLcollaboratedwithseveralexperts in thewatersector to develop the course for municipal councillors and officials. Contextually based on the principlesand practices of leadership, the course covers watermanagement legislation, policies, governance and strategies, as well as strategic thinking, knowledgemanagement, creativity and innovation.

The rationale for the short course is the urgent need for competent and informed leadership to deal withthe complexity of water governance among multiplestakeholdersinSouthAfrica.

ENERGYSECTORDEPARTMENTThe Integrated Energy Plan and Integrated Resource PlanoftheDepartmentofEnergy’s20-yearmaster-planoutlines new energy generating capacity from a rangeof technologies like renewable energy, natural gas andnuclear energy. Our involvement in this sector includes skillsdevelopmentsupportforthefollowingsubsectors:

ELECTRICITY(GENERATION,TRANSMISSIONANDDISTRIBUTION)

Weareenhancingcollaborationandpartnershipswithallstakeholdersinthissubsector,particularlyEskom,asthemain energy utility producer, to mitigate challenges such as load-shading and the protracted construction periods ofnewpowerstationssuchasMedupiandKusile.

The crippling shortage of technical skills in this sectorrequiresrobustengagementandanongoinginterventionbytheEWSETAandindustrytopromotetechnicalskillstraining among our youth.

OILANDGAS

Under SAIMI leadership, we co-partnered with theChemical Industries Education & Training Authority (CHIETA) and Transport Education Training Authority (TETA) to establish Research Chairs in PetroleumGeoscience and Engineering Research as part of the OperationPhakisaOil&GasWorkingGroups3plan.

The National Research Foundation (NRF) has oversight toensure that theestablishmentof theChair isalignedwithbestpractice.TheprojectwillbelaunchedwithfiveotherDHETResearchChairsintheyearahead.

NUCLEARENERGY

Weareengagingandconcludingpartnershipswithrole-players in this subsector, particularly NECSA, NERSAand NIASA.

National government recently identified nuclear powerstation construction areas in the Eastern and Western Cape and we are well-positioned to provide skillsdevelopment and training for the nuclear new buildprogramme.

RENEWABLEENERGY(GREENECONOMY)

TheGreenEconomyisidentifiedbytheUNEnvironmentProgramme as “one that results in improved human wellbeingandlesssocialriskandecologicalscarcities”.Incollaborationwithkeyrole-players,suchasgovernmentdepartments, TVET colleges and higher education and training institutions (HETIs), we identified stakeholdersforfurtherengagementtoprovidetheskillsrequiredforSouth Africa’s transition to a green economy. This includes skillsforenergysourcesand/ortechnologiesnotlimitedto wind, biogas and farm energy. The GAP-SA/Italyprogrammementionedabovehighlightssomestrategicinterventionsforskillsdevelopmentopportunities.

TheEWSETAwillrespondtotheDepartmentofEnergy’sSolar Water Heater Programme by coordinating allrelated training interventions and providing a relevant curriculumandaccreditedskillsdevelopmentprovidersto train andcertificate learners to respond to the skillsrequirement in this area.


WAYFORWARDWith substantive collaboration agreements alreadyin place, and a number about to be concluded, ourcommitment remains robust to develop mutuallybeneficial, strategic partnerships with major players intheindustry.Thefocusin2017/18willbeonleveragingthese partnerships to support the EWSETA’s leadership in skills development and training for three strategicprojects and 10 rural development projects.

Ms Tsholofelo Mokotedi (Acting Executive)SectoralCollaborationandStakeholderEngagementJuly 2017

“We are collaborating and partnering with all stakeholders in the energy sector to help mitigate challenges such as the crippling shortage of technical skills. Addressing the challenges requires robust engagement and an ongoing intervention by the EWSETA and industry to promote skills training among our youth.”

PART E: Corporate Services EWSETA ANNUAL REPORT 2016/1760

PART ECORPORATE

SERVICES


Given this context, the Corporate Services function focusedonenablingongoingemployeedevelopmentandimplementing systems that facilitate performance against theEWSETA’soverall strategicobjectivesanddirection.We also assisted the organisation and align its activities with the principles of good governance to ensuretransparency and accountability throughout theSETA –from leadership to legislative compliance, from decision-making to procurement and from fiscal responsibility torecord-keeping.

TheCorporateServicesbranchconsistsofdepartmentsfor Human Resources, Information and Communications Technology and Facilities Management and Marketingand Communication.

Ourobjectivesaretoachieve:

• an organisational culture recognised for professional excellence and effective strategic planning, monitoring and performance improvement systems

• best practice human resources management andadministration

• bestpracticeinformationmanagement• best practice marketing and communication

management and implementation• stable, robust and secure ICT infrastructure and

systems• an inclusive, clean, safe, healthy and environmentally-

friendlyworkplace.

CORPORATESERVICESEXECUTIVEOVERVIEWMS CANDICE MOODLEY

Corporate Services is a valued support partner for the EWSETA and integral toitsabilitytoachieveitsStrategicOutcomeGoals.Wearecommittedto

providing high-quality, relevant support services to ensure that the organisation deliverscoordinatedadvicetoemployees,keystakeholdersandpartners.


ACHIEVEMENTSANDCHALLENGESAspects of the Corporate Services environment that hamperedourabilitytofullyexecuteourresponsibilitiesandmeettargetsrelatedmainlytoadelayinfillingkeypositionsat senior management level and in the implementation of our Performance Management System (PMS).

KEYAPPOINTMENTS

Duringthereportingperiod,CorporateServicesfunctionedfor most of the year without managers for its HumanResources (HR) and Information and Communications Technology (ICT) and Facilities departments. These positionsarebothcriticaltosupportingtheorganisationinachievingitsstrategicgoalsandobjectives.

It is incumbent on the ICT and Facilities department toaddress any concerns raised by the Auditor-General ofSouth Africa in the previous year’s Annual Report. For the 2015/16 financial period, these related specifically to governance and security issues, policies, procedures, backupsandfirewalls.Similarly,havingmanagementandleadership in place in the HR department is integral to a stable,effectiveandproductiveworkplace.

I take great pleasure, therefore, in confirming that boththese vacancieswere filled during the reporting period.The ICT and Facilities Manager joined us in March 2017 and immediately fast-tracked interventions to deal withthe Auditor-General’s concerns. This resulted in visibleprogress, including the delivery of an in-depth analysis of theICTenvironmentandacompletelyreviewedITSecurityPolicythatisawaitingfinalapproval.Theappointmentofthe Human Resources Manager in October 2016 hasgivensignificanttractiontomanyactivitiesthathavebeenon hold.

NEWBUILDING

Circumstances beyond our control delayed therefurbishment of the EWSETA’s new building. DespiteBoard appraisal of the situation throughout the protracted period and advice from legal counsel, the matter had not beenresolvedbyfinancialyear-end.Wehopetooccupythebuildingintheyearahead.

HIGHLIGHTS

We made positive progress in building the EWSETA’sbrandandreputationamongstakeholders intheenergyand water services sector. This was due mainly toclose collaboration internally between the Marketingand Communication department and the Sectoral Collaboration and Stakeholder Engagement (SCSE)branch. Their focus on objective-driven planningoptimisedstakeholder interactionsandactively involvingour partners in joint projects. A project management approach also increased our efficiency and ability tocompleteprojectswithinbudgetsallocations.

LABOUR RELATIONS

The governance structures of the EWSETA Board emphasised on consequence management during the pastyear.Asa result,managersareensuringstaff takeresponsibility for complying with our Code of Conduct,aligning behaviour with our organisational values andculture and performing their duties. Despite previouschallenges, the PerformanceManagement Systemwasactivatedtowardstheendofthereportingperiodandisfacilitating the consequence management process. This willremainaprioritygoingforward.

HUMAN RESOURCESThe EWSETA’s Human Resources (HR) department provides the strategic and innovative human resource policies, practices and programmes that help realise ourvision.TheabsenceofaHRManageruntilwell intothe reporting period compromised the management structure, day-to-day functioning of the department and implementationofanumberofkeyinitiatives.

SincetheappointmentoftheHRManageron1October2016, a range of outstanding issues were expedited.These included effective and transparent recruitment and selection and performance management processes to appoint the right people in positions to best build adiverse and competent workforce. Staff training anddevelopment, payroll system support, employment equity anddiversitymanagement,andahealthyandsafeworkenvironment,werealsoprioritised.


HUMANRESOURCESPLANSANDGOALS

The plans and goals of the HR department focus on givingeffecttothefollowingobjectives:

• develop an HR Strategy and Operating Model Framework to improve HR services within theorganisation

• comply with the legal requirements to develop anEmploymentEquityPlanandWorkplaceSkillsPlanfor the EWSETA and urgently convene the related committees

• strengthen relationships with union leaders andmembers

• drive the inculcation of organisational values among all employees.

PERFORMANCE OUTCOMES

During the reporting period, outcomes related to, inter alia:

• Performance Management System (PMS) – the PMS was initiated in the 2015/16 financial yearto provide the standards against which individualemployees are monitored and measured; manageperformance and rewards effectively; and improveperformance, efficiency and service delivery.

I am pleased to report that Board approval of a Performance Management Policy in March 2017 resolved the delay in implementation. We are currently signing performance contracts with allemployees. Performance evaluations are scheduled for the year ahead.

• Policies review and development – the reviewprocess resulted in the development a number ofprioritisedpolicies thatare ready toworkshopwithemployeesandtheunioninthenewfinancialyear.

• Recruitment of key managers – good progress included the appointment of the Chief Operating Officer,Mr IneelengMolete,on1September2016;HR Manager, Ms Buyiswa Bingwa on 1 October2016;ChiefFinancialOfficer,MsMphoMookapele,on 1 December 2016; and ICT and FacilitiesManager,MrSiyabongaDyosiba,on6March2017.

The 11 temporary employees appointed wereallocated to the Projects Department (2), SkillsDeliveryDepartment(2)andtheWaronLeaksProjectSupport Team in Gauteng and in the regions (7). We also appointed a Strategic Planning Practitioner in

theQuality,AssuranceandComplianceDepartmentand secured the services of seven Interns. The EWSETA’s internship programmes are alignedwiththe NSDS III and seen as ideal opportunities tosupport the objectives of the Skills DevelopmentAct, 97 of 1998, to develop specific skills for theSETA.

• Healthy work-life balance – as a caring employer, theEWSETAsponsoredanEmployeeWellnessDaywith a focus on achieving a balanced work- andhome-life.Nearly90%ofemployeesparticipatedintheevent,whichwillbecomeanannualtraditionforthe EWSETA to convey its appreciation for the value that employees add to the organisation.

• Key functional committeeswereestablishedandconvened to manage the provident fund, oversee organisational training and guide the implementation of employment equity.

We made positive progressinbuildingtheEWSETA’sbrandand reputation among stakeholdersintheenergyandwaterservicessector,due mainly to close collaborationinternallybetweentheMarketingand Communication DepartmentandtheSectoralCollaborationandStakeholderEngagement(SCSE)branch.


SOMEACHIEVEMENTSANDCHALLENGES

The approval of the Performance Management Policy, establishmentofkeyfunctionalcommitteesandareviewand development of HR policies, as indicated before,werespecifichighlightsintheHRenvironment.

Challenges during the past year related mainly to budgetaryconstraintsandastructurereview.Severallyandjointly,thesechallengesdelayedskillsdevelopmentfor employees while vacant posts continued to befilled incrementally according to priority and budgetavailability.

WeareawareoftheneedtosharetheHRpolicieswithemployees to raise awareness and alleviate concerns

aboutanumberofHR-relatedmatters.Theseworkshopswill take place in the forthcoming financial year. InFebruary 2017, industrial action resulted in a numberof employees participating in a protected strike. TheEWSETA leadership immediately engaged with theunion while normal business activities continued. As aresult, employees returned to work with the assurancethatmanagementwilladdresstheirdemandsinthenewfinancial year.

HUMANRESOURCEREPRESENTIVITY

The following tables reflect information pertinent to thehuman resources of the organisation for the period under review.

Table 15: Personnel cost by programme

Programme Personnel expenditure (R’000) Number of employees

Average personnel cost per employee (R’000)

Admin 14,809 29 511

Operations 19,104 49 390

WaronLeaksproject 2,136 9 237

TOTAL 35,231 87 1,138

Table 16: Personnel cost by salary band

Level Personnel expenditure

(R'000)

% of personnel expenditure to total

personnel cost

Number of employees

Average personnel cost per employee

(R'000)

Top management 1,712,941 5 1 1,712,941

Senior management 2,495,976 7 3 831,991

Professionallyqualified 13,415,351 40 16 838,459

Skilled 15,179,465 45 40 379,486

Semi-skilled 487,470 1 3 162,490

Unskilled 702,796 2 15 46,853

TOTAL 33,994,000 100 78 435,820


Table 17: Performance rewards

Level Performance rewards (R’000)

Personnel expenditure (R'000)

% of performance rewards to total personnel cost

Top management 0 1,712,941 0

Senior management 0 2,495,976 0

Professionallyqualified 0 13,415,351 0

Skilled 0 15,179,465 0

Semi-skilled 0 487,470 0

Unskilled 0 702,796 0

TOTAL 0 33,994,000 0

Table 18: Training costs

Directorate/Business Unit

Personnel expenditure

(R’000)

Training expenditure

(R'000)

Training expen-diture as a % of personnel cost

Number of employees

trained

Average training cost

per employee

Operations 15,452,505 20,520 0.13 6 R3,420

StakeholderEngagement 2,462,715 6,840 0.28 2 R3,420

Finance 7,266,191 58,220 0.80 17 R3,425

Corporate Services 3,868,072 3,420 0.09 1 R3,420

ChiefExecutiveOffice 4,944,517 3,420 0.07 1 R3,420

TOTAL 33,994,000 92,420 0.27 27 R3,423

Table 19: Employment and vacancies

Programme/Activity/Objective 2016/17number of employees

2016/17vacancies

% of vacancies

ChiefExecutiveOfficer 5 1 1

Operations 52 24 23

SectorCollaborationandStakeholderEngagement 15 9 9

Finance 15 4 4

Corporate Services 15 7 7

TOTAL 102 45 44


Table 20: Employment statistics for the 2016/17 financial period

Programme/Activity/ Objective

2016/17 approved posts

2016’2017number of employees

2016’2017vacancies

% of vacancies

Top management 1 1 0 0

Senior management 4 3 1 1

Professionallyqualified 14 16 1 1

Skilled 81 41 42 41

Semi-skilled 2 9 1 1

Unskilled 0 0 0 0

TOTAL 102 70 45 44

NOTE: Theappointmentofnine(9)WaronLeaksprojectemployeeswasadditionaltotheapprovedEWSETAstructure.Theseemployeesare includedinallTables.The information inTable20 includesemployeesappointedonfixed-termcontracts.

Table 21: Employment changes

Level Employment at beginning of period

Appointments Terminations Employment at end of period




Skilled 43 5 2 41


Unskilled 0 0 0 0

TOTAL 61 20 5 70

TheinformationinTable21includesemployeesappointedonfixed-termcontracts.

Table 22: Reasons for staff leaving

Reason Number % of total number of staff leaving

Death 0 0

Resignation 4 3.9

Dismissal 0 0

Retirement 0 0

Ill-health 0 0

Expiry of contract 1 0.9

Other 0 0

TOTAL 5 4.8

TheinformationinTable22includesemployeesappointedonfixed-termcontracts.


Table 23: Labour relations: Misconduct and disciplinary action

Nature of disciplinary action Number

Verbalwarning 2

Writtenwarning 4

Finalwrittenwarning 0

Dismissal 0

TOTAL 6

Table 24: Equity targets and employment equity status

Levels Male

African Coloured Indian White

Current Target Current Target Current Target Current Target

Top management 0 0 1 0 0 0 0 0

Senior management 1 1 0 0 0 0 0 1

Professionallyqualified 9 0 1 0 0 0 0 1

Skilled 9 1 0 0 1 0 0 0

Semi-skilled 5 0 0 0 0 0 0 0

Unskilled 0 0 0 0 0 0 0 0

TOTAL 24 2 2 0 1 0 0 2

Levels Female

African Coloured Indian White

Current Target Current Target Current Target Current Target

Top management 0 0 0 0 0 0 0 0

Senior management 1 0 0 0 1 0 0 0

Professionallyqualified 5 0 0 0 0 0 1 0

Skilled 28 1 2 0 0 0 0 0

Semi-skilled 4 0 0 0 0 0 0 0

Unskilled 0 0 0 0 0 0 0 0

TOTAL 38 1 2 0 1 0 1 0

Levels Disabled staff

Male Female

Current Target Current Target




Skilled 0 1 0 0


Unskilled 0 0 0 0

TOTAL 0 1 0 1


INFORMATIONANDCOMMUNICATIONS TECHNOLOGY(ICT)ANDFACILITIESMANAGEMENTInformation and Communications Technology (ICT) is a critical enabler that allows the EWSETA to takeadvantage of opportunities in today’s ‘hyper-connected’ and information-rich business world and create SETAservices that respond to 21st century business needs.The future lies in adopting an information-centric rather thantechnology-centricfocusindoingbusiness.

The focus of our ICT function is to alleviate the constraints caused by geographical boundaries to deliver smarterstakeholder-centredservicescharacterisedby:

• combinedinformationandservicesthatareavailablethrough common, easy-to-access stakeholder-centric digital channels

• processes defined by an end-to-end view ofbusiness operations from both the organisation’sandstakeholders’perspectives

• security and privacy measures integrated into the technological design and adoption of all newservicestoimprovebusinessresilienceandsecurity

• ICT-enabled business systems that deliver theexpectedbenefits.

Asindicatedpreviously,theEWSETAwaswithoutanICTand Facilities Manager for 11 months during the reporting period.Thisheldbackmany ICTprojects. Iampleasedto report that since the arrival of the new manager inMarch 2017, improvements are already evident in our ICT environment.

Most notable is the in-depth analysis of our ICTenvironment to comprehensively and strategically inform our ICT strategy. The analysis identified ICT as an invaluable business-enabler and enables us tomore adequately address people, process, technology and operations requirements that are aligned with theEWSETA’smandateandbusinessimperatives.

DespitetheabsenceofapermanentICTManagerduringthereviewperiod,thedepartmentmadesteadyprogressin addressing the gaps identified by the AGSA in the2015/16audit.Asaresult,thefollowingisinplaceasatthe 2016/17 financial year-end:

• CreatedsecurityreportsfromMarch2016onwardsformonthlyreviewandsign-off

• Developed a daily ICT checklist that is beingimplemented

• Developed processes for ICT functions, includingback-ups, anti-virus checks, firewall violation andactivity, patchmanagement and password changerequests

• Removedmonthlyback-upsoff-siteand recoveredthemtoanothersystemtocheckdataintegrity

• Monthly sign-off of daily anti-virus monitoring and logs and developed a procedure to followwhen avirus is detected, which ensures minimal systemsdowntime

• Activated request documentation for user access to the network, aswell as a request form for useraccess to Pastel and MIS

• Developedandactivateda formal ICTuseraccesstermination procedure

• Developed an online ICT support logging systemand activated it in March 2017

• Goodprogresswithapolicyreviewandbenchmarkingagainst other SETAs,with an emphasis on closingpolicygapsasidentifiedbytheAGSAaudit.

CHALLENGES

The main challenges for the year going forward areto proactively address the lean capacity within thedepartment and resolving the inadequacy of the LAN and WAN infrastructure that requires a redesign to meet currentandfuturebusinessneeds.

FUTURE PLANS

Going forward, we will implement an ICT ServiceManagement system with Incident and problemmanagement capabilities to log, record, track andproperlymanageallICT-relatedservicerequests.Wewillstrengthen our ICT governance through implementing an ICT strategy aligned with the EWSETA strategyand an ICT Governance Framework aligned with theDPSA Government ICT Governance Framework,as well as developing, approving and implementingICT service management processes according to ITIL recommendations and reviewing, approving andimplementing an ICT Security Policy and Procedures.


MARKETINGANDCOMMUNICATIONWith admirable commitment to strategic planningfor improved performance, our Marketing andCommunication team, in close collaboration with theSectoral Collaboration and Stakeholder Engagementbranch, assisted the EWSETA in further entrenchingits brand as a sector-focused education and trainingservice provider, responsive to sector-specific needs and engendering client satisfaction.

Anumberofkeyhighlightsduringthepastyearincluded:

• Profiled the new Chairperson in the April 2016Edition of Leadership Magazine

• Introduced a ‘data-card’, postcard-sized data-card to collate information from target segments (POPIActtakenintoconsideration),whichcontainsfour “survey type of questions” to assess brandsatisfaction levels.Thiswasusedtocreateaclientperception survey from which we developed ananalysis report to inform improvement of the tool goingforward

• MarketingcalendardevelopedforbettercollaborativeplanningacrossDepartments

• Improvedonprojectplanningwithinthedepartmentthrough the development of a project plan template foreasierusebymarketingstaff

• Strengthening and leveraging relationships withall current partners/vendors while simultaneouslymaximising value and reducing costs

• Working with relevant managers to update theCareer Guide and develop an Employer Guide

• Facilitated yet another successful Annual General Meeting.

OurparticipationinkeysectorandrelatedeventsduringtheyearalsoaddedsignificantvaluetoestablishingandreaffirmingtheEWSETAbrandandstrategicfocus.Theseincluded:

The Africa Energy Indaba 2017

TheAfricaEnergyIndaba2017,aWorldEnergyCouncilevent held at the Sandton Convention Centre from 20-22 February 2017, was an important highlight. Giventhe high demand for energy in Africa, the event attracts governmentsandcompaniesonthelook-outforserviceproviders, partners and investors to develop and growthe region’s energy infrastructure. This creates investment and partnering opportunities, as well as a platform forstakeholderengagement.

The parallel topic-specific sessions, such as the Africa Gas Forum and Women in Energy Conference, presented theEWSETAwithopportunitiesthatsupportourstrategicpriorities for 2017/18. We utilised opportunities effectively to create brand awareness and visibility, engagewith sector stakeholders, launch our DUT/EWSETAenergyDRIVEMobileTruckon the firstdayof theeventandconcludedaground-breakingMoUwiththeWomenin Oil and Energy South Africa (WOESA) initiative. In addition, the EWSETA walked away with the Runner-UpAward for “BestDesigner Stand”, a clear indicationthat we are continuously increasing the quality of ourparticipation year-on-year.

The inaugural Youth in Energy Indaba 2016

The inauguralYouth inEnergy Indaba2016held inPortElizabethfrom20-21October2016wasahighlight,notonly for theEWSETAbut theenergysectorasawhole.In 2015, the EWSETAwas requested by energy sectorstakeholders to participate in a Steering Committeeto conceptualise and drive a “Youth in Energy Indaba”(YEI). The other committee members represented theDepartment of Energy, Eskom, Coega DevelopmentCorporation, NECSA and NIASA.

TheinauguralYEIintendedtoattractlearners,students,educators, lecturers, the out-of-school and unemployed youth, graduates, young entrepreneurs and small, medium and micro-enterprises (SMMEs) interested in the energy sector (energy employers and IPPs) withinthe Nelson Mandela Metropolitan and Sarah-Baartman Municipalities to a two-day indaba and exhibition. Thedelegateswereexposedto,inter alia, policy-discussions, energy-mixprogrammeplans,capacitybuildingthroughskillsdevelopmentandtraining,industrylocalisationandbusinessventuredevelopment.


The committee raised R1 million for the event through sponsorships and exhibition stands. Sponsors includedtheDistrictMunicipality (learner transport to thevenue),Central Energy Fund, NIASA, DoE, DEDEAT, EWSETA,SANEDI,MBDAandSarah-BaartmanMunicipality.Eventparticipants included 200 delegates, 140 learners from the Sarah-Baartman and surrounding municipal areas, 15 studentswithRElecturers,PrincipalandDeputyPrincipalfrom the local TVET college and 20 learners from the EWSETA/Nelson Mandela Bay Municipality RenewableEnergySkillsProgramme.

National Skills Authority Annual Skills Conference and Awards

AlltheSETAs,askeystakeholdersinthehighereducationand training sector, were invited by the National SkillsAuthority to attend its Annual Skills Conference andAwards event. The EWSETA also participated in theTechnicalTaskTeamfortheconference.

Teammembersweretaskedtodeepentheirunderstandingof post-school system legislation and policies, strengthen skills development, promote the youth and productiveworkforinclusivegrowth,fast-trackartisandevelopmentand encourage international best practice in skillsdevelopment.

Otherobjectivesincluded:

• creating platforms for social partners to support strategy implementation and skills development,showcase their organisations and disseminateinformation

• celebrating excellence by recognising skillsdevelopment best practices among all skillsdevelopment implementers and in a range of NSF-funded projects

• providing extensive national print and electronic mediaexposuretoskillsdevelopmentbestpractices

• recognising work placement opportunitiescreated through learning programmes such as artisan development, FET and University graduate placements, learnerships and internships

• encouragingthemaximumuseofworkplace-basedskillsdevelopmentinitiatives

• mobilisingbusiness,government,communitiesandproviderstorealiseNSDSIIIgoals.

TheSETAswererequestedtosupporttheeventthroughawardandlogisticssponsorships,exhibitingandmakingother resources, including human resources, availableif required. The EWSETA participated in the Content Development Committee and sponsored a LearningProgramme in the Best TVET Placement Programme category.

HIGHLIGHTSSomeofourmarketinghighlightsincluded:

• closercollaborationbetweeninternalstakeholders• overallimprovementinstakeholderperceptionofthe

organisation• greater recognition at key annual sector events as

the “leading Authority in skills development andtraining in the energy and water sector” (brandpositioning).

PLANS INTO THE FUTUREThe EWSETA has worked tirelessly to increase skillsdevelopment in the energy and water sectors acrossthe country. In the new financial year, the Marketingand Communication Department will create new andinnovative platforms to communicate our programmes, opportunities and successes. These will include anEWSETAnewsletter,socialmediapresence,strengthenedmarketing and communication governance throughrevised policies, procedures and a Corporate Identity Manual.

Career guidance remains important and all our initiatives in fiscal2017/18mustbestrategicallydirected towardsachievinggreaterimpactintheenergyandwatersectors.


WAYFORWARDWeareveryoptimisticaboutthestrategicdirectionoftheEWSETA. This will be enabled through smarter targetsandwell-definedoperationalplans thatdelineateclearlythe roles of the EWSETA branches and departments.In addition, the collective budgeting intervention thatinvolved all branches and departments significantlyimproved budget planning and will enhance financialmanagementgoingforward.

Alongside our achievements, some challenges remain. These include some uncertainty about the SETAlandscapedespitehavingbeenrelicensedto2020andtheextensionoftheNSDSIIIto2020.OurChairpersonandCEOwill,undoubtedly, reflecton the futureSETAand itimpacts on capacitating our structure. Our administrative budget,whichincludesthehighremunerationcomponentof theoverallEWSETAbudget, remainsachallenge.Allbrancheshaveundertakentodrivelevypaymentsthroughstakeholder partnerships and increase collaboration toidentify co-funding opportunities.

IappreciatethecontributionsfromtheCorporateServicesteamoverthepastyear.Ilookforwardtoapositiveandproductive period ahead with greater stability in thebranchandacontinued focusonstrategicplanning forimproved performance.

Ms Candice MoodleyCorporate Services ExecutiveJuly 2017

“We are very optimistic about the strategic direction of the EWSETA. We are driving smarter targets and well-defined operational plans that clearly delineate the roles of our branch and departments. A collective budgeting intervention has also improved budget planning and will enhance financial management going forward.”

PART F: Governance EWSETA ANNUAL REPORT 2016/1772

PART FGOVERNANCE


CORPORATE GOVERNANCE

ORGANISATIONAL PROFILE

TheEWSETAisastatutorybodyestablishedbytheSDAtoadvanceandimplementthenational,sectoralandworkplacestrategiestodevelopandimprovetheskillsofSouthAfrica’sworkforce.Assuch,theEWSETApursuesthedevelopmentofanappropriatelyskilledworkforcecomparabletoworld-classstandardswiththeabilitytoimproveservicedeliverytothe people of our country.

IntermsofthePFMA,theEWSETAisaSchedule3Apublicentity. The EWSETA and its Accounting Authority (the Board) aregovernedby thePFMA, theSkillsDevelopmentLeviesAct,9of1999(SDLA),thestandardEWSETAConstitutionand any other relevant legislation to fulfil its mandate.Consequently Parliament, the Executive Authority (the Minister of Higher Education and Training) and the Board are responsibleforthecorporategovernanceoftheentity.

TheExecutiveAuthorityexercisespowersandresponsibilitiesin respect of the EWSETA Constitution to ensure that the implementation of the objectives and execution of thefunctions of theEWSETAcomplywith theAct, theNSDSand policies of the Executive Authority and government. This is managed through a Service Level Agreement (SLA) that outlines the minimum service levels required from the SETA toperformitsstatutoryfunctions,meettheNSDSIIItargetsand implement its Strategic Plan and Annual Performance Plan.

INTRODUCTION

As a public entity and steward of public funds, theEWSETA is accountable to its Executive Authority and itsstakeholdersandtakesresponsibilityfortheimplementationof itsmandate.TheBoardensurescompliancewithsoundcorporate governance practices and the directives of the PFMA. A governance charter and related standards guides the EWSETA in discharging its duties and responsibilitieseffectively.

THE ROLE OF THE ACCOUNTING AUTHORITY(“THEBOARD”)

The Board governs and manages the EWSETA in accordance withapplicable legislationandprovidesstrategicdirection.The institutional risk and theperformanceof theEWSETAaremanagedandmonitoredbytheBoard.

Composition of the Board

TheEWSETABoardconsistsofmemberswhorepresenttheenergyandwatersectorconstituenciesandstakeholdersinthesector,namelyorganised labour;organisedemployers;relevant government departments and Ministerial appointees asreflectedonthefollowingpages.

TheBoardisawaitingapprovaloffivenominationssubmittedtofillBoardvacancies.Thenominatedindividualsrepresent:

• governmentdepartmentswithactivities that fallwithinthestandardindustrialclassificationcategoriesoutlinedintheEWSETAConstitution,namelytheDepartmentofEnergyandDepartmentofPublicEnterprise

• employers and/or employer organisations in the energy and water sectors, namely the South African LocalGovernment Association (SALGA)

• trade unions whose constituents do business in thesectors,namelytheNationalUnionofMetalWorkersofSouth Africa and Solidarity.

BOARDCOMMITTEESThe Board Committees that are currently fully operational consist of representatives of organised labour, organisedemployers and independent members as indicated in Table25.



FRANS BALENIConstituency: Ministerial appointment.Qualifications:BA(SocialScienceDevelopment)(UniversityofJohannesburg).DiplomainPoliticalScienceandTradeUnionism(BishopsStortford,UnitedKingdom).BODCertificate(IMD,Switzerland).Other leadership roles and/or Board directorships:DBSA(DeputyChairman);FieldBandFoundation(Trustee);ChrisHaniInstitute(Director);UniversityofJohannesburg(Member);F11ManagementConsulting(Director);MiningIndaba

(Member);SibanyeHoldingMining(Member);ADCCables(Chairman);ThelleMogoeraneHospital Advisory Board (Chairman).

OLEBOGENG BESNAARConstituency: Ministerial appointment.

Qualifications: NationalCertificateHealthcareBenefitAdministration(DiscoveryInstitute).

Other leadership roles and/or Board directorships: NEDLAC(Member);CountryDescentWorkProgramme(Member);SANACSecretariat(Member).

TEBOGO PHADUConstituency: Ministerial appointment. Organisation: GautengOfficeofthePremier.Qualifications: SeniorDiplomainPoliticalEconomyandPhilosophy(USSRAcademyofSocialSciences,Moscow,Russia).MPhil (Environmental Economics) (London School of Economics, United Kingdom).Other leadership roles and/or Board directorships: National Cooperative AssociationofSouthAfrica(GeneralSecretary);SouthAfricanFederationofBurial

Societies (Chairperson).

TSHIMANE MONTOEDIConstituency:OrganisedLabour.Organisation: NationalUnionofMineworkers.

Qualifications: Programme in Business Communication (UNISA). CertificateinHumanResources(UNISA).

AppliedOrganisationalDevelopmentProgramme(UNISA).Other leadership roles and/or Board directorships: Mineworkers

DevelopmentAgency(ChiefExecutiveOfficer);StateDiamondTrader(BoardMember);MineralsandMiningDevelopment(BoardMember);

UnityIncorporationMIC(BoardMember).

MERCY SEKANOConstituency:OrganisedLabour.Organisation: Elijah Barayi Memorial Training Centre.Qualifications: UniversityDiplomainSecondaryEducation(TlhabaneCollegeofEducation).ProgrammeandProjectManagementDiploma(UniversityofWitwatersrand).AdultEducationDiploma(UniversityofCapeTown).Other leadership roles and/or Board directorships: JBMarksEducationTrust(Trustee).


STEPHEN NHLAPO †Boardmember,passedawayon10August2016.Weexpressoursincereappreciationforhiswisecounselandcontributiontothebusinessandwell-beingoftheEWSETA.


JUSTICE SERAConstituency:OrganisedLabour.Organisation: Rand Water.

Qualifications: DiplomainHumanResourcesManagement(UNISA).DevelopmentProgrammeinLabourRelations(UNISA).CertificateinSupervisory

Management(GraduateInstituteofManagementandTechnology).CertificateinHumanResources Management (Institute of People Management, SA).

Other leadership roles and/or Board directorships: South African Municipal Workers’Union(ProvincialDeputyChairman);SouthAfricanMunicipalWorkers’Union

ProvincialDisciplinaryCommittee(Chairman).

KEITH SWANEPOELConstituency:OrganisedLabour.Organisation: Independent Municipal and Allied Trade Union (IMATU).Qualifications: BusinessManagementDiploma(Damelin).LabourRelationsDiploma(InstituteofPeopleManagement).PublicPrivatePartnerships(WitsGraduateSchoolofPublicandDevelopmentManagement).

Other leadership roles and/or Board directorships: IMATU(DeputyPresident);Edenvale High School Governing Body (Chairperson).

RAVI MOODLEYConstituency: Organised Business. Organisation: Eskom.

Qualifications: GermanMaster,Electrical(Nuremberg,Germany).MasterofScience(UniversityofWarwick,UK).

Other leadership roles and/or Board directorships: SeniorManageratEskomAcademyofLearning,withover35yearsofexperienceandexpertiseintheenergy

sector locally and internationally.

PETUNIA RAMUNENYIWAConstituency: Organised Business.

Organisation: DepartmentofWaterandSanitation.Qualifications: BA (Psychology) (University of Venda).

DiplomainEducation(UniversityofVenda).Other leadership roles and/or Board directorships: Department

ofWaterandSanitation:OperationalSupport;CoordinationandConsolidation(ChiefDirector).

KNOX MSEBENZIConstituency: Organised Business. Organisation: Nuclear Industry Association of South Africa (NIASA).Qualifications: MAEngineering(CambridgeUniversity).MSc(ElectricPowerEngineering)(RansselaerPolytechnic,NewYork).MBA (Wits Business School).Other leadership roles and/or Board directorships: NIASA (Managing Director);PowerInstituteofEastandSouthernAfrica(ExecutiveDirector).


Tabl

e 25

: EW

SETA

Boa

rd C

omm

ittee

s fo

r the

201

6/17

fina

ncia

l yea

r

MIN

ISTR

Y O

F H

IGH

ER E

DU

CAT

ION

AN

D T

RAIN

ING

– M

inis

ter B

lade

Nzi

man

de (E

xecu

tive

Auth

ority

)EW

SETA

BO

ARD

– M

r Fra

ns B

alen

i (C

hairp

erso

n)

Dire

ctor

and

Ex

ecut

ive

role

s an

d fu

nctio

nsBo

ard

mem

bers

Exec

utiv

e C

omm

ittee

(E

XCO

)

Audi

t and

Ris

k C

omm

ittee

(A

RC)

Fina

nce

Com

mitt

ee

(FIN

CO

M)

Gov

erna

nce

and

Stra

tegy

C

omm

ittee

(G

OVC

OM

)

Hum

an

Reso

urce

and

Re

mun

erat

ion

Com

mitt

ee

(HRR

C)

Lear

ning

Pr

ogra

mm

es

Com

mitt

ee (L

PC)

Qua

lity

Assu

ranc

e an

d C

ompl

ianc

e C

omm

ittee

(Q

ACC

)

Skill

s Pl

anni

ng

Com

mitt

ee (S

PC)

Non-

Exec

utive

Directors

Fran

s Ba

leni

(Cha

irper

son)

Oleb

ogengBe

snaar

Tebo

goPhadu

Ravi

Moo

dley

KnoxMsebenzi

PetuniaRa

munenyiw

a

Tshi

man

e M

onto

edi

MercySekano

Just

ice S

era

KeithSwanepoel

Fran

s Ba

leni

(Cha

irper

son)

Ravi

Moo

dley

Petu

nia

Ramunenyiw

a

MercySekano

Just

ice S

era

JeffRa

poo

(Inde

pend

ent

Chair

pers

on)

Petu

nia

Ramunenyiw

a

Mar

iana

Stry

dom

KeithSwanepoel

Shell

ey T

hom

as

KeithSwanepoel

(Cha

irper

son)

KnoxMsebenzi

MercySekano

KnoxMsebenzi

(Cha

irper

son)

Tshi

man

e M

onto

edi

Tebo

goPhadu

Petu

nia

Ramunenyiw

a

Oleb

ogeng

Besn

aar

(Cha

irper

son)

Ravi

Moo

dley

Just

ice S

era

MlungisiMabaso

MercySekano

(Cha

irper

son)

Oleb

ogeng

Besn

aar

Ravi

Moo

dley

(C

hairp

erso

n)

MercySekano

Just

ice S

era

(Cha

irper

son)

KnoxMsebenzi

Exec

utive

mem

bers

ErrolG

radw

ell

MphoMookapele

Inee

leng

Mol

ete

ErrolG

radw

ell

Inee

leng

Mol

ete

Cand

ice M

oodl

ey

MphoMookapele

Tsho

lofe

lo

Mokotedi

ErrolG

radw

ell

Inee

leng

Mol

ete

Cand

ice M

oodl

ey

MphoMookapele

Tsho

lofe

lo

Mokotedi

Inee

leng

Mol

ete

MphoMookapele

Cand

ice M

oodl

eyCa

ndice

Moo

dley

Inee

leng

Mol

ete

Inee

leng

Mol

ete

Inee

leng

Mol

ete


MIN

ISTR

Y O

F H

IGH

ER E

DU

CAT

ION

AN

D T

RAIN

ING

– M

inis

ter B

lade

Nzi

man

de (E

xecu

tive

Auth

ority

)EW

SETA

BO

ARD

– M

r Fra

ns B

alen

i (C

hairp

erso

n)

Dire

ctor

and

Ex

ecut

ive

role

s an

d fu

nctio

nsBo

ard

Exec

utiv

e C

omm

ittee

(E

XCO

)

Audi

t and

Ris

k C

omm

ittee

(A

RC)

Fina

nce

Com

mitt

ee

(FIN

CO

M)

Gov

erna

nce

and

Stra

tegy

C

omm

ittee

(G

OVC

OM

)

Hum

an

Reso

urce

and

Re

mun

erat

ion

Com

mitt

ee

(HRR

C)

Lear

ning

Pr

ogra

mm

es

Com

mitt

ee (L

PC)

Qua

lity

Assu

ranc

e an

d C

ompl

ianc

e C

omm

ittee

(Q

ACC

)

Skill

s Pl

anni

ng

Com

mitt

ee (S

PC)

Responsib

ilities

Gov

erns

and

man

ages

th

e EW

SETA

and

en

sure

s th

at th

e en

tity

achievesitsob

jectives

and

perfo

rms

the

func

tions

con

tem

plat

ed

in C

onst

itutio

n. T

he

Boar

d als

o se

ts th

e st

rate

gic

dire

ctio

n fo

r the

EW

SETA

and

en

sure

s th

at th

e entitycomplies

with

the

relev

ant s

tatu

tory

re

quire

men

ts a

nd th

ose

of th

e Co

nstit

utio

n. T

he

institutionalrisk

and

the

perfo

rman

ce o

f the

EW

SETA

are

man

aged

andmonitoredbythe

Boar

d.

Ove

rsee

s th

e m

anag

emen

t ofallfinancial

mat

ters

of t

he

EWSE

TA a

nd

supe

rvise

s th

e im

plem

enta

tion

of B

oard

pol

icies

. Th

e Co

mm

ittee

fu

rther

per

form

s an

y ot

her

func

tion

or d

uty

as d

elega

ted

to

itbytheBo

ard

or c

onfe

rred

uponitbythe

Cons

titut

ion.

Serv

es a

s a

mec

hani

sm fo

r th

e Bo

ard

to

mon

itor a

nd

rein

forc

e th

e effectiveness

of th

e in

tern

al co

ntro

l sys

tem

an

d in

tern

al an

d ex

tern

al au

dit

(Aud

itor-G

ener

al)

func

tions

in

accordancewith

the

ARC

and

Inte

rnal

Audi

t Ch

arte

rs. T

he

ARCals

orevie

ws

and

asse

sses

th

e ad

equa

cy

of re

porti

ng

to th

e Bo

ard

bytheCh

ief

Executive

Offic

er

in te

rms

of th

e qu

ality,

qua

ntity

an

d tim

ing

of

info

rmat

ion

nece

ssar

y to

un

ders

tand

and

re

port

inte

rnall

y an

d ex

tern

ally

on

theentity’srisks,

oper

atio

n an

d financia

lcondition.

Ensu

res

that

the

EWSE

TA m

eets

th

e re

quire

men

ts

oftheSD

A,

SDLA

,PFM

Aan

d th

e Tr

easu

ry

Regu

latio

ns in

relationtofinance

adm

inist

ratio

n an

d repo

rtingaswell

as c

ompl

iance

withlaws,

regu

latio

ns a

nd

ethi

cs.

Ove

rsee

s th

e fu

nctio

ning

of

all t

he

subcom

mittees

of th

e Bo

ard

to m

onito

r and

en

sure

that

the

right

gov

erna

nce

stru

ctur

es a

nd

func

tions

are

m

ainta

ined

and

consistentw

ith

bestpractice

sto

ens

ure

the

long-te

rmviab

ility

of th

e EW

SETA

. Th

e St

rate

gic

Plan

and

Ann

ual

Perfo

rman

ce P

lan

are

reco

mm

ende

d totheBo

ardby

the

Gov

erna

nce

and

Stra

tegy

Co

mm

ittee

.

Annu

ally

revie

wsthe

appr

opria

tene

ss

of th

e or

gani

satio

nal

stru

ctur

e,

com

pete

nce

and

qualificationsof

the

EWSE

TA’s

hum

an re

sour

ces.

Al

l issu

es re

latin

g tostaffandCE

O

rem

uner

atio

n, a

s wellasBo

ardand

hum

an re

sour

ces

and

rem

uner

atio

n po

licies

, plan

s an

d pr

actic

es,

are

evalu

ated

and

re

com

men

ded

to

theBo

ardbythis

Com

mitt

ee.

Evalu

ates

and

re

com

men

ds

the

learn

ersh

ip

stra

tegy

and

busin

ess

plan

s fo

r the

im

plem

enta

tion

of le

arne

rshi

ps

in th

e se

ctor

. Ad

ditio

nally

, the

de

velo

pmen

t of

pol

icies

, pr

incip

les, c

riter

ia an

d lea

rner

ship

guidelines,aswell

as th

e m

onito

ring

ofbasic

man

agem

ent

func

tions

of

the

learn

ersh

ip

syst

em fo

r the

energyandwater

sect

ors

(inclu

ding

ad

min

istra

tion

of c

ontra

cts)

, re

gist

ratio

n of

lea

rner

ship

s an

d di

scip

linar

y iss

ues

relat

ing

to

the

learn

ersh

ips

syst

em a

re th

e fu

nctio

ns o

f the

Co

mm

ittee

.

Ensu

res

deve

lopm

ent

of p

olici

es,

prin

ciples

, crit

eria

and

guid

eline

s re

lated

to

Educ

atio

n an

d Tr

ainin

g Q

uality

As

sura

nce

(ETQ

A) fo

r re

com

men

datio

n to

the

Boar

d.

Ensu

res

regi

stra

tion

of a

ccre

dite

d as

sess

ors

and

mod

erat

ors/

verifiersofnational

qualificationsin

the

sect

or fo

r specific

standards

orqualifications

in te

rms

of

the

crite

ria

establish

edfor

this

purp

ose.

Re

com

men

ds

the

issui

ng o

f certificatesto

co

mpe

tent

lea

rnersby

EWSE

TA.

Coop

erat

es in

th

e m

oder

atio

n of

as

sess

men

t and

qu

ality

ass

uran

ce

acro

ss s

ecto

rs.

Facilitateswater

and

ener

gy

sectorsbaseline

research;ensures

that

the

Sect

or

SkillsPlan

is

prep

ared

and

re

com

men

ds

its a

dopt

ion

to

the

Exec

utive

Co

mmittee;

mon

itors

/ev

aluat

es th

e im

plem

enta

tion

of th

e EW

SETA

Se

ctorSkills

Plan,W

orkplac

eSk

illsPlan

/Annual

Train

ing

Repo

rt andNS

DSIII

targets;and

repo

rts to

the

Boar

d.


Table 26: EWSETA Board and Committees: Meeting attendance and remuneration

Board and Board Committee meetings attendance 2016/17 and remunerationNo of meetings Board EXCO ARC FINCOM GOVCOM HRRC LPC QACC SPC Fees paid

(R’000)Scheduled 4 7 5 4 1 3 4 4 4Special 1 1 1 1Strategy 2AGM 1Board membersFrans Baleni 6 (C) 7 (C) 175,608OlebogengBesnaar7 8 2/2 1/1 4 (C) 5 258,590TebogoPhadu4 3 26,678Ravi Moodley3 8 1/1 4 4 (C) 0KnoxMsebenzi 8 4 1 (C) 2 849PetuniaRamunenyiwa 7 3 3 1 0Tshimane Montoedi 8 0 64,103Stephen Nhlapo 2 1/2 13,939MercySekano 8 7 4 5 (C) 2 265,012Justice Sera 8 6 4 4 (C) 196,634KeithSwanepoel 7 4 105,410Independent membersJeffRapoo1 8 6 (C) 120,036Mariana Strydom 6 61,029Shelley Thomas 5 44,947MlungisiMabaso10 0 0Executive ManagementErrolGradwell 8 6Ineeleng Molete5 1/1 3/3 2/2 3/3 3/3 2/2 2/2MphoMookapele6 1/1 1/1 2/2 1/1Candice Moodley 7 1 4TsholofeloMokotedi 6CathrineKobyana8 3/3KabeloMasilo9 4/4(C) = Chairperson1.IndependentChairpersonoftheARC,attendsallBoardmeetingsbyinvitation. 2.Passedawayon10August2016. 3.AppointedasmemberoftheExecutiveCommitteeon30November2016. 4.AppointedasmemberoftheGovernanceandStrategyCommitteeon28July2016. 5.ChiefOperationsOfficerwitheffectfrom1September2016. 6.ChiefFinancialOfficerwitheffectfrom1December2016. 7.AttendedtwoEXCOmeetingsperinvitation. 8.ActingChiefFinancialOfficeruntilAugust2016. 9.ActingChiefOperationsOfficeruntil31August2016. 10. Resigned 19 August 2016.


REMUNERATIONOFBOARDMEMBERS

Board and Committee members receive an allowance toattend and contribute to official meetings. The Ministerof Higher Education and Training and the Board approve allowance rates according to remuneration level sub-category S, as determined by the Minister of Finance inthe “Circular from the National Treasury on Adjustment of the Remuneration Levels”. The Board and Audit and RiskCommitteemembersareremuneratedatthesamerateandasapprovedbytheMinisterofHigherEducationandTraining.

The EWSETA applies the daily rates for Board and Committee meetings preparation and attendance as stipulated in Circular2(RemunerationTariffsfortheBoardandCommitteemembersofSETAsandnon-SETAsthatreporttotheDHET)issued by the Minister of Higher Education and Training.Allowancesarepaidtoministerialappointeesandorganisedand independent committee members. Board memberswho are government employees are not remunerated formeetingattendanceunlesstheytakeunpaidleavefromtheirrespectivepositionstoattendthemeetings.Allowancespaidare subject to relevant tax rates. The Board remunerationinformationisreflectedinTable17.

COMPLIANCEWITHLAWSANDREGULATIONS

TheEWSETAensurescompliancewithlawsandregulationsthrough its governance structures and in accordancewithits mandate as formally communicated by the ExecutiveAuthority and National Treasury. The EWSETA has also aligneditsactivitieswiththeExecutiveAuthority’scompliancecalendar to ensure a consistent focus on and adherence to itscomplianceresponsibilities.

CONFLICT OF INTEREST

BoardandcommitteemembersarerequiredtocompleteaDeclarationof Interest formtodeclare their interests inanyofthemattersontheagendabeforeanymeeting.Membersdeemedtohaveconflictsofinterestarerequestedtorecusethemselvesfromthedeliberations.

AlignedwithourCodeofConduct,employeesshallnotusetheirpositionsorknowledgegainedthroughtheiremploymentwith theEWSETAforprivateorpersonaladvantageor inamanner that results in a conflict or appearance of conflictbetweentheirpersonalinterestsandthatoftheorganisation.

CODEOFCONDUCT

The EWSETA is committed to a policy of fair dealing and integrityinitsbusinessconduct.Thiscommitment,whichis

endorsedbytheBoard,isbasedonafundamentalbeliefthatbusinessshouldbeconductedhonestly,fairlyandlegally.TheEWSETA expects all employees to share its commitment to high moral, ethical and legal standards.

AllmembersoftheBoardandanycommitteeestablishedbytheBoard,aresubjecttotheorganisation’sCodeofConductandrequiredtocomplywithboththeletterandspiritoftheCode.

SAFETY,HEALTHANDENVIRONMENT(SHE)

The EWSETA’s operating policies integrates pollution control andwastemanagementintooperatingprocedurestomanageits environmental footprint. Employees are encouraged to attend appropriate and timeously to environmental issues.

The organisation takes every reasonable precaution toensure a safe, clean and healthy work environment for allemployees.EachemployeeisresponsibleforfollowingSHErules and practices and reporting accidents, injuries and unsafe conditions, procedures or behaviours tomaintain aworkplaceconducivetooptimumperformance.

COMPANYSECRETARY

The EWSETA outsourced the role of Company Secretary in the2016/17financialyeartoadedicatedserviceprovider.Allcompliancedeadlinesweremetduringtheyearunderreview.

The Company Secretary fully supports the EWSETA Board. This includestrackingcrucial informationaboutcomplianceresponsibilities aligned with the Standard EWSETAConstitution and the SETA’s Governance Charter. Most critical for the Company Secretary is the execution of proper governance systems and methods that enable the Boardand management to meet all the mandatory compliance deadlines. The Company Secretary focuses on detail and workstoahighlevelofaccuracywhilebalancingcompetingpriorities.Integrity,abeliefintheimportanceoftransparencyandtheabilitytoabsorbanddigesttechnicalknowledgetobalance the needs of the various parties that the functionsupports, is crucial.

The Company Secretary reports to the Board and Chief ExecutiveOfficer. Duties require the utmost discretion andconfidentiality.Attentionispaidtoplanningtoguideprogressand ensuring everything is recorded, especially in regard to governancewith tightdeadlines. Impeccableorganisationalskills and reliable processes and systems are essential toachieve success in this role.


We are pleased to present our report for the year ended 31March2017asfollows:

AUDITANDRISKCOMMITTEECOMPOSITIONANDMEMBERS

The Committee is governed by a formal Terms ofReference orCharter. ThisCharter is reviewed annuallyandapprovedbytheAccountingAuthority.TheCommitteehasan independent rolewithaccountability toboth theAccounting Authority and the Executive Authority. It does notassumethefunctionsofmanagement,whichremain

the responsibilityof theofficersandmembersof seniormanagement. The Committee acts in an advisory and oversight capacity; it does not relieve management ofitsresponsibilitiesbutmakesobjectiveandindependentrecommendations.

For the year under review, the Committee comprisedof five independent non-executive members withappropriatequalificationsandexperience,nominatedbytheAccountingAuthorityandappointedbytheExecutiveAuthority. A quorum for meetings is a majority of the memberspresent.

REPORTOFTHEAUDITANDRISKCOMMITTEEMR JEFF RAPOO (CHAIRPERSON)

“Thecommitteeissatisfiedthatithas,duringthepastfinancialyearmetitsresponsibilitiesasstipulatedinitstermsofreferenceandthatithascomplied

withallitslegal,regulatoryandotherresponsibilities.”


Name of Committee members:

Mr. J R Rapoo (Chairperson)Ms. M StrydomMs. S ThomasMr.KSwanepoelMs.PRamunenyiwa

ATTENDANCEATMEETINGS

The Committee meets at least four times a year and its meetings are attended by the Chief Executive Officer,Chief Financial Officer, Chief Operating Officer and representatives of the internal and external auditors. DuringtheyearunderreviewtheCommitteeheldsevenmeetingsasoutlinedbelow.

Name of member Number of meetings attended Mr. J R Rapoo (Chairperson) 6Ms. M Strydom 6Ms. S Thomas 5 Mr.KSwanepoel 4Ms.PRamunenyiwa 3 RESPONSIBILITIESOFTHEAUDITANDRISK COMMITTEE

The Committee has discharged its responsibilities asprescribed in thePublicFinanceManagementAct,1of1999, as amended and Treasury Regulations 27.1.8 and 27.1.10(b)and(c)andregulateditsaffairsincompliancewiththeapprovedCharter.

Infulfillingtheseresponsibilities,theCommitteeperforms,inter alia,thefunctionsoutlinedbelow:

• MakessubmissionstotheAccountingAuthorityandadvises it, the accounting officer and management of the entity on matters relating to internal financial control and internal audit, risk management,accounting policies, the adequacy, reliability andaccuracy of financial reporting and the reporting of performance against targets set in the Annual Performance Plan, effective governance, compliance with thePFMAandother applicable legislationandany other issues referred to it by the AccountingAuthority.

• Ensures that the combined assurance received isappropriatetoaddressallthesignificantrisksfacingtheentityandmonitorstherelationshipbetweentheexternal assurance providers and the entity.

• Overseesand reviews theexpertise, resourcesandexperience of the entity’s finance function.

• Oversees the internal audit function, which isoutsourced and reports directly to the audit Committee;reviewsandapprovesthe internalauditplan and monitors the effectiveness of the internal audit function in terms of its scope, progress withexecution, coverage and independence.

• Expressesaviewontheeffectivenessoftheinternalcontrol environment bymonitoring internal controlsfor effectiveness.

• Oversees the external audit process, approves the terms of engagement and remuneration for the external audit engagement and reviews theeffectiveness of the external audit process. Any significant issues arising from the annual audit are broughttotheCommittee’sattention.

• Forms an integral part of the risk managementprocess and specifically oversees financial reporting risks,internalfinancialcontrols,fraudriskinrelationtofinancialreportingandinformationtechnologyrisksas they relate to financial reporting and compliance withlawsandregulations.

• Assists the Accounting Authority in ensuring that the entity has implemented an effective policy and plan forriskmanagement,whichwillenhancetheentity’sabilitytoachieveitsstrategicobjectives.

• Overseesthedevelopmentandannualreviewoftheentity’sriskmanagementactionplanandensuresthatframeworksandmethodologiesare implementedtoincreasethepossibilityofanticipatingunpredictablerisks.

• Monitors implementation of the risk managementaction plan, ensures that risk managementassessments are performed on a continuous basisand reports to the Accounting Authority in this regard.

• MakesrecommendationstotheAccountingAuthorityconcerninglevelsoftoleranceandriskappetite.


• Performs such additional oversight functions as may be determined by the Accounting Authority fromtime-to-time.

• Evaluates the expertise, resources and experience of the financial function staff.

• Evaluates,onanongoingbasis,theappropriatenessand adequacy of the EWSETA’s accounting policies andproceduresforconsistencyandcompliancewithapplicableGRAPstandardsandotherregulations.

• Evaluates the effectiveness and appropriateness of ITgovernancepoliciesoftheEWSETAtoenableittofulfil its mandate.

EFFECTIVENESS OF INTERNAL CONTROL,INTERNALAUDITANDRISKMANAGEMENT

The EWSETA systems of internal control and riskmanagement processes are designed to, inter alia, safeguardassets,manage liabilitiesandworkingcapitalefficientlyintheexecutionofitsbusinessandminimiseoreliminaterisksthatcouldpreventtheachievementof itsobjectives.

Assurance on the appropriateness and effectiveness of control systems and risk management processes inoperation is provided by an independent internal auditfunction. This function is provided by an outsourcedservice provider whose activities are directed by theAuditandRiskCommittee.Theinternalauditconductsitsdutiesintermsofapprovedinternalauditcharterwhichisalsosubjecttoreviewannually.Theinternalauditfunctionfollowsa riskbasedauditapproach inaccordancewiththe EWSETA risk profile as assessed and recordedby management from time-to-time. The Committeeapprovedtheannualauditworkplan.

The Committee is satisfied that, based on quarterlyreports and findings, including recommendations for suggested improvements by internal audit and thefindingsoftheexternalauditprocess,readwithresponsesbymanagementandtheirplannedcorrectiveactionsforweaknessesidentifiedintheprocess,theinternalcontrolsystemsandriskmitigationactionsfunctionedadequatelyfor the year under review, except in those instancesoutlined fully in the final management letter of the Auditor-

General of South Africa (AGSA). The Committee willmonitor the implementationofactionplansdesignedbymanagement to correct and/or prevent the recurrence of similarweaknessestoobtainassurancethatsuchplansare effective.

MONTHLYANDIN-YEARMANAGEMENTREPORTING

The Committee reviewed quarterly financial andperformance reporting, together with findings fromthe Auditor-General and Internal Audit. These findings have been discussed with management. Based on theprocesses and assurances obtained, the Committeeis satisfiedwith the content and quality of the periodicreportspreparedandissuedbytheAccountingAuthority.

RISK MANAGEMENT

The Committee has, during the period under review,exercised oversight in respect of the risk managementfunction of the enterprise that remains management’s responsibility,monitoredtheimplementationoftheentity’sriskmanagementactionplanandmaderecommendationsregarding improvement of reporting thereon.

EVALUATION OF THE ANNUAL FINANCIAL STATEMENTSANDTHEANNUALPERFORMANCE REPORT

TheAuditandRiskCommitteehas:

• Reviewedanddiscussedtheauditedannualfinancialstatements and annual performance report withmanagement and the AGSA.

• Considered the audit findings of the AGSA as outlined in his final management report, including the responses of management to such findings.

• Considered the EWSETA’s compliance with legaland regulatory provisions as reflected in the final management report of the AGSA and the reports of internal audit.

• Considered changes in accounting policies and procedures for their possible impact on thepresentation of the annual financial statements.


The EWSETA is committed to fair dealing and integrity in its business conduct. This commitment is endorsed by the EWSETA Board and based on a fundamental belief that business should be conducted honestly, fairly and legally. The EWSETA expects all employees to share its commitment to high moral, ethical and legal standards.

• Notedthatcertainmaterialadjustmentswereeffectedto the financial statements and annual performance report as a result of the audit process.

Based on the reviews, discussions and explanationsrendered, theCommitteeconcurswithandaccepts theAuditor-General’s conclusions on the Annual Financial Statements and Annual Performance Report. The Committee isthereforeoftheviewthatthereportsreadtogetherwiththereportoftheAGSAbeaccepted.

UNRESOLVEDMATTERS

The Committee was assured during discussions withthe Auditor-General, internal audit and management that there are no unresolved matters arising out of the audit process.

J R RapooChairpersonoftheAuditandRiskCommittee31 July 2017

PART G: Financial Information EWSETA ANNUAL REPORT 2016/1784

PART GFINANCIAL

INFORMATION


STATEMENTOFRESPONSIBILITY

The Accounting Authority is responsible for the preparation of the public entity’s Annual Financial Statements and thejudgements made in this information.

The Accounting Authority is also responsible for establishing and implementing a system of internal controls to providereasonableassuranceastotheintegrityandreliabilityoftheAnnualFinancialStatements.

Inouropinion,thefinancialstatementsfairlyreflecttheoperationsofthepublicentityforthefinancialyearended31March2017.

TheexternalauditorsareengagedtoexpressanindependentopinionontheAnnualFinancialStatementsofthepublicentity.TheexternalauditorsauditedtheEWSETA’sannualfinancialstatementsfortheyearended31March2017andtheirreportispresented in this document.

TheAnnualFinancialStatementsofthepublicentityhavebeenapproved.

Mr Errol GradwellChiefExecutiveOfficerJuly 2017

Mr Frans BaleniChairpersonJuly 2017


The current financial period noted a 16% increase in theSETA’slevyincome.Managementhasarobuststakeholderengagement strategy and clear processes to identify potentialnewlevypayersandincreaseinlevyincome.Thiswill secureproject fundingandcontributepositively to theachievementoftheSETA’smandateintheenergyandwaterservices sectors.

The Finance branch ensures that all funds received areutilised for service delivery and accurately accounted for in linewiththerelevantaccountingframeworkandlegislation.AcontinuedfocusonstrengtheningtheEWSETA’sfinancialcontrolsensuresthatthebusinessenvironmentisconducivetoeffectiveplanningandimprovedperformance.

REPORT OF THE CHIEF FINANCIAL OFFICERMS MPHO MOOKAPELE

The EWSETA operates in a compliance environment that is complex and vast.OperatingeffectivelyandefficientlyasaSETArequiresabalancebetweenacompliance-drivencultureandinnovationtoaccelerateperformance excellence, legislative and regulatory compliance and

continued improvement in audit outcomes.

FINANCIALSKILLSANDCAPACITYFormalised technical development initiatives, such as improved“on-the-job”trainingandtechnicalexposuretotheapplication of Generally Recognised Accounting Practice (GRAP), thePublicFinanceManagementAct (PFMA),1of1999 (as amended) and other relevant legislation, served to enhancethecapacityandskillsofthefinanceteam.


BUDGETCONSTRAINTSDespite budget constraints, the SETA met 54% of itsdeliverables,asoutlinedinthe2016/17EWSETAStrategicPlan and 2016/17 Annual Performance Plan (APP), withavailableandcommittedfunds.Theidentificationofprojectbacklogs through the improved and planned monitoringand evaluation of current, delayed and pending financialclosure projects, as well as the timeous reallocation offunds topartnerwith stakeholderswith similar values andaclear understandingof theSETA’smandate, contributedsignificantly to funding new projects. These projects arealigned with the objectives of the SETA and thereforecontribute implicitly towards the National DevelopmentPlangoalofincreasingSouthAfrica’sskillspoolbybuildingcapabilitiesandenhancingthecapacityofthestatetomeetits mandate.

RISKMANAGEMENTANDINTERNAL CONTROLS EffectiveriskmanagementisfundamentaltotheESWETA’sactivities. Responsibility and accountability for riskmanagementresidesatall levelswithintheEWSETA, fromthe Accounting Authority to all employees throughout the organisation.TheEWSETAconductsannualriskassessmentreviewsintegraltoanentity-wideriskmanagementprocessthatincludesaRiskRegister.Theidentifiedrisksandprogressmade in implementing controls tomitigate those risks arereported every quarter to the Audit and Risk Committee.InternalcontrolwasassuredbyallthecombinedassuranceproviderswithintheEWSETA.

GRANTSANDLEVIESAs reflected in the statement of financial performance,levy income increased compared to previous years. The disbursement of mandatory grants, however, was slightlybelowbudgetandlowcomparedtothepreviousyear.

This decline in mandatory grants disbursement was dueto employer non-compliance with stipulated requirementsandnon-adherencetosubmissiondeadlines.TheEWSETAremainscommittedtoeducatingandenablingemployerstoimprovethedisbursementoffundsintheyearahead.

POLICIESANDPROCEDURESWereviewedourpoliciestoensurealignmentwiththerelevantlawsandregulationsandto improvefinancialcontrolsandcompliancewiththerelevantprescripts.Theimplementationof standard operating procedures and adherence to internal policies improved our processes and systems and, as a result, our performance.

A standardised and enhanced Supply Chain Management process has improved lead times and is ensuring that procurement processes are timeous and efficient.Streamliningtheseprocessesfurtherwillcreategreaterinter-branch efficiency within the EWSETA and improve overallperformance.

APPRECIATIONWethankthedifferentEWSETAbranchesandexecutivesfortheir unstinting cooperation and commitment to achieving the EWSETA’s strategic goals and objectives. My sincereappreciation also goes to the Accounting Authority for its supportanddirectionprovidedduringtheyearunderreview.

Ms Mpho MookapeleChiefFinancialOfficer(CFO)July 2017


Report of the Auditor-Generalto Parliament on the Energy and Water Sector Education and Training Authority

REPORTONTHEAUDITOFTHEFINANCIALSTATEMENTS

Opinion

1. I have audited the financial statements of the Energyand Water Sector Education and Training Authority (EWSETA)setoutonpages95to131,whichcomprisethe statement of financial position as at 31 March2017, statement of financial performance, statementofchangesinnetassets,cashflowstatementandthestatement of comparison of budget information withactual information for the year then ended, as wellas the notes to the financial statements, including asummaryofsignificantaccountingpolicies.

2. Inmyopinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheentityas at 31 March 2017 and its financial performanceandcashflowsfortheyearthenendedinaccordancewithSouthAfricanStandardsofGenerallyRecognisedAccounting Practice (SA Standards of GRAP) and the requirements of the Public Management Finance Actof South Africa, 1999 (Act No. 1 of 1999) (PFMA) and theSkillsDevelopmentAct,1998(ActNo97of1998)(SDA).

Basis for opinion

3. IconductedmyauditinaccordancewiththeInternationalStandardsonAuditing(ISAs).Myresponsibilitiesunderthose standards are further described in the Auditor-General’s responsibilities for the audit of the financialstatements section of my report.

4. Iamindependentoftheentity inaccordancewiththeInternational Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) together with the ethical requirements that arerelevanttomyaudit inSouthAfrica.Ihavefulfilledmyother ethical responsibilities in accordancewith theserequirements and the IESBA code.

5. I believe that the audit evidence I have obtained issufficient and appropriate to provide a basis for myopinion.

Emphasis of matters

6. Idrawattentiontothematterbelow.Myopinionisnotmodifiedinrespectofthismatter.

Restatement of corresponding figures

7. Asdisclosedinnote33tothefinancialstatements,thecorresponding figures for 31 March 2016 have beenrestatedasaresultofanerrorinthefinancialstatementsof the entity at, and for the year ended, 31 March 2017.

Responsibilities of Accounting Authority

8. The Accounting Authority is responsible for thepreparation and fair presentation of the financialstatements in accordance with and the requirementsof the and for such internal control as the Accounting Authority determines is necessary to enable thepreparation of financial statements that are free frommaterialmisstatement,whetherduetofraudorerror.

9. In preparing the financial statements, the AccountingAuthorityisresponsibleforassessingtheEWSETA’sabilitytocontinueasagoingconcern,disclosing,asapplicable,matters relating to a going concern and using the going concern basis of accounting unless the AccountingAuthority either intends to liquidate the entity or cease operations,orhasnorealisticalternativebuttodoso.

Auditor-General’s responsibilities for the audit of the financial statements

10. My objectives are to obtain reasonable assuranceabout whether the financial statements as a wholeare free from material misstatement, whether dueto fraud or error, and to issue an auditor’s report that includesmyopinion.Reasonable assurance is a highlevelofassurance,butisnotaguaranteethatanauditconducted inaccordancewith ISAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscan arise from fraud or error and are considered material if,individuallyorintheaggregate,theycouldreasonablybe expected to influence the economic decisions ofuserstakenonthebasisofthesefinancialstatements.

11. Afurtherdescriptionofmyresponsibilitiesfortheauditofthefinancialstatementsisincludedintheannexuretothe auditor’s report.

REPORTONTHEAUDITOFTHEANNUALPERFORMANCE REPORT

Introduction and scope

12. In accordance with the Public Audit Act of SouthAfrica, 2004 (Act No. 25 of 2004) (PAA) and the general



notice issued in terms thereof, I have a responsibilitytoreportmaterialfindingsonthereportedperformanceinformation against predetermined objectives forselected programmes presented in the Annual Performance Report. I performed procedures to identifyfindingsbutnottogatherevidencetoexpressassurance.

13. My procedures address the reported performance information, which must be based on the approvedperformance planning documents of the entity. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of futureperiods thatmaybe includedaspart of thereported performance information. Accordingly, my findingsdonotextendtothesematters.

14. Ievaluatedtheusefulnessandreliabilityofthereportedperformanceinformationinaccordancewiththecriteriadeveloped from the performance management and reporting framework,asdefined in thegeneralnotice,for the following selected programmes presented inthe annual performance report of the entity for the year ended 31 March 2017:

Programmes Pages in the Annual Report

Programme 2 – Skills Planning,QualityAssuranceandDelivery

26 - 33

15. I performed procedures to determine whether thereported performance information was properlypresented and whether performance was consistentwith the approved performance planning documents.I performed further procedures to determine whetherthe indicators and related targets were measurableandrelevantandassessedthereliabilityofthereportedperformance information to determinewhether it wasvalid, accurate and complete.

16. Ididnotidentifyanymaterialfindingsontheusefulnessand reliabilityof the reportedperformance informationforthefollowingprogramme:

• Programme2–Skillsplanning,QualityAssuranceandDelivery

Other matters

17. Idrawattentiontothemattersbelow.

Achievement of planned targets

18. Refer to the Annual Performance Report on pages 26 to 33 for information on the achievement of planned targets for the year and explanations provided for the under-/overachievementofanumberoftargets.

Adjustment of material misstatements

19. I identified material misstatements in the AnnualPerformance Report submitted for auditing. Thesematerial misstatements were on the reported performance information of Programme 2 – SkillsPlanning,QualityAssuranceandDelivery.Asmanagementsubsequentlycorrectedthemisstatements,Ididnotraiseanymaterialfindingsontheusefulnessandreliabilityofthe reported performance information.

REPORTONAUDITOFCOMPLIANCEWITH LEGISLATION

Introduction and scope

20. In accordance with the PAA, and the general noticeissued in terms thereof, I have a responsibility toreportmaterialfindingsonthecomplianceoftheentitywith specific matters in key legislation. I performedprocedures to identify findings but not to gatherevidence to express assurance.

21. The material findings in respect of the compliancecriteriafortheapplicablesubjectmattersareasfollows:

Annual Financial Statements

22. The financial statements submitted for auditing werenot prepared in accordance with the prescribedfinancial reporting framework as required by section55(1)(a)and(b)ofthePublicFinanceManagementAct.Material misstatements of commitments identified bytheauditorsinthesubmittedfinancialstatementswerecorrectedresultinginthefinancialstatementsreceivinganunqualifiedauditopinion


OTHER INFORMATION

23. The EWSETA Accounting Authority is responsible forthe other information. The other information comprises the information included in the Annual Report. The other informationdoesnot include the financial statements,the Auditor’s Report thereon and those selected programmes presented in the Annual Performance Report that have been specifically reported on in theAuditor’s Report.

24. Myopiniononthefinancialstatementsandfindingsonthe reported performance information and compliance with legislation do not cover the other informationand I do not express an audit opinion or any form of assurance conclusion thereon.

25. Inconnectionwithmyaudit,myresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancial statements and the selected programmespresented in the Annual Performance Report, or my knowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.If,basedontheworkIhaveperformedontheotherinformationobtainedpriortothedate of this Auditor’s Report, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

INTERNALCONTROLDEFICIENCIES

26. I considered internal control relevant to my audit of financialstatements,reportedperformanceinformationand compliance with applicable legislation; however,myobjectivewasnottoexpressanyformofassurancethereon.Themattersreportedbelowarelimitedtothesignificant internal control deficiencies that resulted inthefindingsontheAnnualPerformanceReportandthefindingsoncompliancewithlegislationincludedinthisreport.

Leadership

27. Deficienciesinthecontrolenvironmentmainlyintheareasofperformancereportingandcompliancewithlawsandregulationswere noted. Thesedeficiencieswere as aconsequence of inadequate and ineffective oversightmonitoring of adherence to the policies and procedures

bymanagement. This resulted in errors in theAnnualFinancial Statements and material misstatements in the AnnualPerformanceReportsubmittedforaudit.

28. Material misstatements identified in the AnnualPerformanceReportwereanindicationthattheactionplan to address audit recommendations was nottimeously implemented and adequately monitored.

Financial and performance management

29. Although the entity has developed and approved policies and procedures for the preparation of the financialstatements, performance reporting and compliance with procurement regulations, these policies werenotstrictlyadheredto.Asaresult; theaudit identifiedmisstatements that existed, which could have beenpreventedanddetectedbypoliciesandprocedures.

OTHER REPORTS

30. I draw attention to the following engagements thatcouldpotentiallyimpactonthepublicentity’sfinancial,performance and compliance related matters. My opinionisnotmodifiedinrespectoftheseengagementsthatareeitherinprogressorhavebeencompleted.

Legal proceedings

31. There is a legal proceeding relating to prolonged contractualdelaysontherefurbishmentofthebuilding,itbecameevidentthatthecontractormightnotbeableto deliver the service as was expected at 31 March2017. At the date of this report the legal proceedings werestillongoing.

Pretoria31 July 2017



ANNEXURE–AUDITOR-GENERAL’SRESPONSIBILITYFORTHEAUDIT

1. AspartofanauditinaccordancewiththeISAs,Iexerciseprofessional judgement and maintain professional scepticism throughout my audit of the financialstatements, and the procedures performed on reported performance information for selected programmes and ontheentity’scompliancewithrespecttotheselectedsubjectmatters.

Financial statements

2. In addition to my responsibility for the audit of thefinancialstatementsasdescribedintheauditor’sreport,I also:

• Identify and assess the risks of materialmisstatementof the financial statementswhetherdue to fraud or error, design and perform audit procedures responsive to those risks,andobtainaudit evidence that is sufficient and appropriatetoprovideabasis formyopinion.Theriskofnotdetecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtainanunderstandingofinternalcontrolrelevantto the audit in order to design audit procedures thatareappropriateinthecircumstances,butnotfor the purpose of expressing an opinion on the effectivenessoftheentity’sinternalcontrol.

• Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures madebytheboardofdirectors,whichconstitutesthe Accounting Authority.

• Conclude on the appropriateness of the boardof directors, which constitutes the AccountingAuthority’s use of the going concern basis ofaccounting in the preparation of the financialstatements. I also conclude, based on the audit


evidenceobtained,whetheramaterialuncertaintyexists related to events or conditions that may cast significantdoubtontheEnergyandWaterSectorEducationandTrainingAuthorityabilitytocontinueas a going concern. If I conclude that a material uncertaintyexists,Iamrequiredtodrawattentionin my auditor’s report to the related disclosures in the financial statements about the materialuncertainty or, if such disclosures are inadequate, tomodifytheopiniononthefinancialstatements.My conclusions are based on the informationavailabletomeatthedateoftheauditor’sreport.However,futureeventsorconditionsmaycauseanentity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures,andwhether thefinancialstatementsrepresent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithinthegrouptoexpressanopinion on the consolidated financial statements.Iamresponsibleforthedirection,supervisionandperformance of the group audit. I remain solely responsibleformyauditopinion.

Communication with those charged with governance

3. IcommunicatewiththeAccountingAuthorityregarding,among other matters, the planned scope and timing of the audit and significant audit findings, including anysignificantdeficiencies in internalcontrol that I identifyduring my audit.

4. I alsoconfirm to theAccountingAuthority that I havecomplied with relevant ethical requirements regardingindependence, and communicate all relationships and othermattersthatmayreasonablybethoughttohavea bearing on my independence and here applicable,related safeguards.


Accounting Authority’s Responsibilities and Approvalfor the year ended 31 March 2017

ThemembersarerequiredbythePublicFinanceManagementAct (Act 1 of 1999), to maintain adequate accounting records and are responsible for the content and integrityof the Annual Financial Statements and related financialinformation included inthisreport. It is theresponsibilityofthememberstoensurethattheAnnualFinancialStatementsfairlypresentthestateofaffairsoftheentityasattheendofthefinancialyearandtheresultsofitsoperationsandcashflows for theperiod thenended.Theexternalauditorsareengaged to express an independent opinion on the Annual FinancialStatementsandweregivenunrestrictedaccesstoallfinancialrecordsandrelateddata.

The Annual Financial Statements have been preparedin accordance with Standards of Generally RecognisedAccounting Practice (GRAP) including any interpretations, guidelinesanddirectivesissuedbytheAccountingStandardsBoard.

TheAnnualFinancialStatementsarebaseduponappropriateaccountingpoliciesconsistently appliedandsupportedbyreasonableandprudentjudgementsandestimates.

The members acknowledge that they are ultimatelyresponsible for the system of internal financial controlestablishedbytheentityandplaceconsiderableimportanceonmaintainingastrongcontrolenvironment.Toenablethemembers to meet these responsibilities, the AccountingAuthority sets standards for internal control aimed at reducing the risk of error or deficit in a cost-effectivemanner. The standards include the proper delegation of responsibilitieswithinaclearlydefinedframework,effectiveaccounting procedures and adequate segregation of duties

to ensure an acceptable level of risk. These controls aremonitored throughout the entity and all employees are required to maintain the highest ethical standards in ensuring the entity’s business is conducted in amanner that in allreasonablecircumstances isabovereproach.Thefocusofriskmanagement in theentity is on identifying, assessing,managingandmonitoringallknownformsofriskacrosstheentity.While operating risk cannot be fully eliminated, theentityendeavourstominimiseitbyensuringthatappropriateinfrastructure, controls, systems and ethical behaviour areappliedandmanagedwithinpredeterminedproceduresandconstraints.

Themembersareoftheopinion,basedontheinformationand explanations given by management, that the systemof internal control provides reasonable assurance that thefinancial records may be relied on for the preparation ofthe Annual Financial Statements. However, any system ofinternal financial control can provide only reasonable, andnot absolute, assurance against material misstatement ordeficit.

The Annual Financial Statements set out on pages 95 to 131,whichhavebeenpreparedonthegoingconcernbasis,wereapprovedbytheAccountingAuthorityonandsignedonitsbehalfby:

Frans BaleniAccounting Authority Chairperson


Accounting Authority’s Reportfor the year ended 31 March 2017

The members submit their report for the year ended 31 March 2017.

1. REVIEW OF ACTIVITIES

Main business and operations

The Energy and Water Sector Education and Training Authority(EWSETA)isaPublicEntitylistedinSchedule3AofthePublicFinanceManagementAct(Act1of1999)andisestablishedintermsoftheSkillsDevelopmentAct,97of1998. The EWSETA operates under executive authority of the Minister for Higher Education and Training.

Theoperatingresultsandstateofaffairsoftheentityarefullysetout intheattachedannualfinancialstatementsanddonot in our opinion require any further comment.

2. GOING CONCERN

The annual financial statements have been prepared onthe basis of accounting policies applicable to a goingconcern.Thisbasispresumesthatfundswillbeavailabletofinance futureoperationsand that the realisationofassetsand settlement of liabilities, contingent obligations andcommitmentswilloccurintheordinarycourseofbusiness.

3. SUBSEQUENT EVENTS

Themembersareawareofmatterorcircumstancearisingsincetheendofthefinancialyearthatrequireadjustmenttothefinancialstatements.Duetoprolongedcontractualdelaysontherefurbishmentofthebuilding,ithasbecomeevidentthatthecontractormightnotbeabletodelivertheserviceaswasexpectedat31March2017.Prepaymentmadetothecontractorwillbeclaimedthroughlegalproceedings.

4. CORPORATE GOVERNANCE

General

Theaccountingauthorityiscommittedtobusinessintegrity,transparency and professionalism in all its activities. As part of this commitment, the accounting authority supports the highest standards of corporate governance and the ongoing developmentofbestpractice.

TheentityisguidedbytheprinciplesoftheCodeofCorporatePractices and Conduct (“the Code”) laid out in the King III Report on Corporate Governance for South Africa 2009. The accounting authority discusses the responsibilitiesof management in this respect, at Accounting Authority meetingsandmonitortheentity’scompliancewiththecodeonathreemonthlybasis.

The salient features of the guidelines of the Code are outlined below:

Accounting Authority

The Accounting Authority:• retainsfullcontrolovertheentity,itsplansandstrategy;• acknowledges its responsibilities as to strategy,

compliance with internal policies, external laws andregulations,effectiveriskmanagementandperformancemeasurement,transparencyandeffectivecommunicationbothinternallyandexternallybytheentity;

• is of a unitary structure comprising: -non-executivemembers,allofwhomareindependent

membersasdefinedintheCode;and -executivemembers.

Chairperson and Chief Executive Officer

The Chairperson is a non-executive and independent member(asdefinedbytheCode).TherolesofChairpersonandChiefExecutiveOfficerareseparate,withresponsibilitiesdividedbetweenthem,sothatnoindividualhasunfetteredpowersofdiscretion.

REMUNERATION

TheremunerationoftheChiefExecutiveOfficerislegislatedin terms of The Government Gazette No.34720 dated 4 November 2011. The Chief Financial Officer, the ChiefOperatingOfficer,theSectorCollaborationsandStakeholderEngagement Executive and Corporate Services Executive’s remunerationaredeterminedbytheAccountingAuthority.


Accounting Authority’s Report (continued)for the year ended 31 March 2017

EXECUTIVEMEETINGS

Theaccountingauthorityhasmeton5separateoccasionsduringthefinancialyear.Theaccountingauthorityschedulestomeet at least 5 times per annum.

MembersoftheAccountingAuthority Designation Appointment Meetings Attended Changes

Frans Baleni Chairperson Ministerial Appointee 5 out of 5

OlebogengBesnaar Member Ministerial Appointee 5 out of 5

TebogoPhadu Member Ministerial Appointee 2 out of 5

Ravi Moodley Member Organised Business 5 out of 5

Justice Sera Member OrganisedLabour 5 out of 5

MercySekano Member OrganisedLabour 5 out of 5

KeithSwanepoel Member OrganisedLabour 3 out of 5

KnoxMsebenzi Member Organised Business 5 out of 5

PetuniaRamunenyiwa Member Organised Business 4 out of 5

Stephen Nhlapo Member OrganisedLabour 2 out of 5 Deceased

Tshimane Montoedi Member OrganisedLabour 5 out of 5

AUDITANDRISKCOMMITTEE

ForthecurrentfinancialyearthechairpersonoftheauditcommitteewasMrJRRapoo(Independentmember).Thecommitteemet6timesduringthefinancialyeartoreviewmattersnecessarytofulfilitsrole.

INTERNALAUDIT

TheentityhasoutsourceditsinternalauditfunctiontoNgubane&Company.InternalauditisincompliancewiththePFMA.


Statement of Financial Positionas at 31 March 2017

Restated2017 2016

Note(s) R '000 R '000

Assets

Current AssetsReceivablesfromexchangetransactions 3 43,666 4,671Receivablesfromnon-exchangetransactions 4 667,559 12,276Prepayments 5 21,887 47,573Cash and cash equivalents 6 477,397 347,155

1,210,509 411,675Non-Current AssetsProperty, plant and equipment 7 42,688 40,857Intangibleassets 8 2,810 1,620Intangibleassetsunderdevelopment 9 - 1,904

45,498 44,381Total Assets 1,256,007 456,056

Liabilities

Current LiabilitiesOperatingleaseliability 10 - 87Payablesfromexchangetransactions 11 18,179 16,076Payablesfromnon-exchangetransactions 12 77,822 59,289Unspent conditional grants and receipts 13 66,176 19,038Provisions 14 701,323 21,225Total Liabilities 863,500 115,715Net Assets 392,507 340,341Administration grant reserve 45,498 44,381Mandatory grant reserve 88 157Discretionarygrantreserve 346,921 295,803Total Net Assets 392,507 340,341


Statement of Financial Performancefor the year ended 31 March 2017

Restated2017 2016

Note(s) R '000 R '000Non-exchange revenue 15 1,453,499 590,567Exchange revenue 16 37 44Investment revenue 17 23,731 17,025Total revenue 1,477,267 607,636Employer grant and project expenses 18 (1,359,546) (560,321)Administration expenses 19 (30,063) (28,998)Employee related costs 20 (33,994) (30,462)Depreciationandamortisation 21 (1,461) (1,247)Loss on derecognition of assets (37) (33)Finance Costs 22 - (406)Surplus / (Deficit) for the period 52,166 (13,831)


Statement of Changes in Net Assets for the year ended 31 March 2017

Administration reserve

Mandatory grant reserve

Discretionarygrant reserve

Accumulated surplus

Total net assets

R '000 R '000 R '000 R '000 R '000Balance at 01 April 2015 28,264 71 325,837 - 354,172

Changes in net assetsSurplus for the period ended 31 March 2015 - - - (13,831) (13,831)Allocationofunappropriatedsurplus/(deficit) (27,646) 5,584 14,402 7,660 -(refer note 23)Excess funds transferred (to)/from discretionary 39,771 (5,498) (34,273) - -grant reservePrior year adjustments (refer note 34) 3,992 - (10,163) 6,171 -Total changes 16,117 86 (30,034) - (13,831)Balance at 01 April 2016 restated 44,381 157 295,803 - 340,341Changes in net assetsSurplus for the year - - - 52,166 52,166Allocationofunappropriatedsurplus/(deficit) (27,719) 48,477 31,408 (52,166) -Excess funds transferred (to)/from discretionary 28,836 (48,546) 19,710 - -reserveTotal changes 1,117 (69) 51,118 - 52,166Balance at 31 March 2017 45,498 88 346,921 - 392,507

Theadministrationreserveisareserveforthecarryingvalueofproperty,plantandequipmentandintangibleassets.

Themandatorygrantreserveisareservefornewlyregisteredcompaniesparticipatingafterthelegislativecut-offdate.


Cash Flow Statementfor the year ended 31 March 2017

Restated2017 2016

Note(s) R '000 R '000Cash flows from operating activities

ReceiptsNon-exchange revenue 843,955 608,519Exchange revenue 37 45Interest income 23,063 17,025

867,055 625,589PaymentsEmployee related costs (32,298) (29,449)Employer grant and project expenses (672,302) (559,183)Administration expenses (29,600) (39,331)

(734,200) (627,963)Net cash flows from operating activities 24 132,855 (2,374)

Cash flows from investing activitiesPurchase of property, plant and equipment 7 (2,291) (17,398)Purchaseofintangibleassets 8 (322) (37)Net cash flows utilised in investing activities (2,613) (17,435)Net decrease in cash and cash equivalents 130,242 (19,809)Cashandcashequivalentsatthebeginningoftheyear 347,155 366,964Cash and cash equivalents at the end of the year 6 477,397 347,155


Statement of Comparison of Budget and Actual Amountsfor the year ended 31 March 2017

Approved budgetR ‘000

AdjustmentsR ‘000

Final BudgetR ‘000

Actual amounts on comparable

basisR ‘000

Differencebetweenfinalbudgetand

actualR ‘000 Reference

Revenue

Revenue from exchange transactionsOther income - - - 37 37 aInterest received - investment 16,170 330 16,500 23,731 7,231 bTotal revenue from exchange transactions 16,170 330 16,500 23,768 7,268

Revenue from non-exchange transactionsTransfer revenueSpecial project income - - - 1,166,471 1,166,471 cSkillsdevelopmentlevyincome 230,991 33,909 264,900 284,412 19,512 dInterest and penalties income - - - 2,616 2,616 dTotal revenue from non-exchange transactions 230,991 33,909 264,900 1,453,499 1,188,599Total revenue 247,161 34,239 281,400 1,477,267 1,195,867

ExpenditurePersonnel (32,160) (1,840) (34,000) (33,994) 6 eDepreciationandamortisation (207) 207 - (1,461) (1,461)Lease rentals on operating lease (3,614) (1,086) (4,700) (4,021) 679Repairs and maintenance (86) (414) (500) (160) 340 fGeneral expenses (22,811) (1,305) (24,116) (25,882) (1,766) gDiscretionarygrantexpenses (149,513) (21,987) (171,500) (1,337,046) (1,165,546) hMandatory grant expenses (34,151) 4,151 (30,000) (22,500) 7,500 iTotal expenditure (242,542) (22,274) (264,816) (1,425,064) (1,160,248)Operating surplus 4,619 11,965 16,584 52,203 35,619Loss on derecognition of assets - - - (37) (37)Operating surplus 4,619 11,965 16,584 52,166 35,582Actual Amount on Comparable Basis as presented in the Budget and Actual Comparative Statement (4,619) (11,965) (16,584) (52,166) (35,582)

ThematerialdifferencesbetweenbudgetandactualamountsareexplainedinNote36inpage43.


Accounting Policiesfor the year ended 31 March 2017

1. PRESENTATION OF ANNUAL FINANCIAL STATEMENTS

The annual financial statements have been prepared inaccordance with the Standards of Generally RecognisedAccounting Practice (GRAP) including any interpretations, guidelinesanddirectivesissuedbytheAccountingStandardsBoardinaccordancewithSection91(1)ofthePublicFinanceManagement Act (Act 1 of 1999).

These annual financial statements have been prepared onanaccrualbasisofaccountingandare inaccordancewithhistorical cost convention as the basis of measurement,unless specified otherwise. They are presented in SouthAfrican Rand.

Assets, liabilities, revenues and expenses were not offset,exceptwhereoffsetting iseither requiredorpermittedbyaStandard of GRAP.

Asummaryofthesignificantaccountingpolicies,whichhavebeenconsistentlyappliedinthepreparationoftheseannualfinancialstatements,aredisclosedbelow.

These accounting policies are consistent with the previousperiod.

1.1 SIGNIFICANTJUDGEMENTSANDSOURCESOFESTIMATIONUNCERTAINTY

In preparing the annual financial statements, managementis required tomake estimates and assumptions that affecttheamounts represented in theannual financial statementsand related disclosures. Use of available information andthe application of judgement is inherent in the formation of estimates.Actualresultsinthefuturecoulddifferfromtheseestimates which may be material to the annual financialstatements.Significantjudgementsinclude:

Useful lives of property, plant and equipment

All classes of property, plant and equipment are depreciated onastraight-linebasisover theasset’sexpecteduseful lifeto their estimated residual value. The EWSETA reviews the

estimated useful lives and residual values of property and equipment at the end of each annual reporting period, refer to note 7 for the carrying values of property and equipment.

EWSETA’s mandate is dependent on the renewal of theiroperating licencewhich expires in 2020.Management hasa reasonable expectations that the licencewill be renewedindefinitelyandthereforeusefullivesarenotlimitedtothetermof the licence.

1.2PROPERTY,PLANTANDEQUIPMENT

Property,plantandequipmentaretangiblenon-currentassets(including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, orforadministrativepurposes,andareexpectedtobeusedduring more than one period.

The cost of an item of property, plant and equipment is recognisedasanassetwhen:• it is probable that future economic benefits or service

potentialassociatedwiththeitemwillflowtotheentity;and

• thecostoftheitemcanbemeasuredreliably.

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchasepriceandothercostsattributabletobringtheassettothe locationandconditionnecessary for it tobecapableofoperatinginthemannerintendedbymanagement.Tradediscountsandrebatesaredeductedinarrivingatthecost.

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 ofmonetary and non-monetary assets, theasset acquired is initially measured at fair value (the cost). If the acquireditem’sfairvaluewasnotdeterminable,it’sdeemedcostisthecarryingamountoftheasset(s)givenup.Whensignificantcomponents of an item of property, plant and equipment have differentuseful lives,theyareaccountedforasseparate items(major components) of property, plant and equipment.



Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If areplacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

The initial estimate of the costs of dismantling and removing the itemandrestoringthesiteonwhich it is located isalsoincludedinthecostofproperty,plantandequipment,wheretheentity isobligatedto incursuchexpenditure,andwheretheobligationarisesasaresultofacquiringtheassetorusingit 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 inthe locationandconditionnecessary for it tobecapableofoperatinginthemannerintendedbymanagement.

Property, plant and equipment is carried at cost less accumulated depreciation and any accumulated impairment losses.

Property, plant and equipment are depreciated on the straight linebasisover theirexpecteduseful lives to theirestimatedresidual value.

Leasehold improvements should be depreciated over theshorter of the contract period or the assessed useful lives of the assets.

The useful lives of items of property, plant and equipment have beenassessedasfollows:

Item Depreciationmethod

Average useful life

Buildings Straight line 20 to 30 years

Furnitureandfixtures Straight line 5 to 15 years

Motor vehicles Straight line 5 years

Officeequipment Straight line 5 to 15 years

Computer equipment Straight line 3 to 8 years

Leasehold improvements

Straight line Shorter of lease period and useful life of asset

The residual value, and the useful life and depreciation method ofeachassetarereviewedattheendofeachreportingdate.Iftheexpectationsdifferfrompreviousestimates,thechangeis accounted for as a change in accounting estimate.

Reviewingtheusefullifeofanassetonanannualbasisdoesnot require the entity to amend the previous estimate unless expectationsdifferfromthepreviousestimate.

Eachpartofanitemofproperty,plantandequipmentwithacostthatissignificantinrelationtothetotalcostoftheitemis depreciated separately.

The depreciation charge for each period is recognised in surplusordeficitunlessitisincludedinthecarryingamountof another asset.

Items of property, plant and equipment are derecognised whentheassetisdisposedoforwhentherearenofurthereconomic benefits or service potential expected from theuse of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or lossarising from the derecognition of an item of property, plant andequipmentisdeterminedasthedifferencebetweenthenet disposal proceeds, if any, and the carrying amount of the item.

1.3 INTANGIBLE ASSETS

Anassetisidentifiableifiteither:• is 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,regardlessofwhethertheentityintendstodoso;or

• arises from binding arrangements (including rightsfromcontracts),regardlessofwhetherthoserightsaretransferableorseparablefromtheentityorfromotherrightsandobligations.


Anintangibleassetisrecognisedwhen:• it is probable that the expected future economic

benefitsorservicepotentialthatareattributabletotheassetwillflowtotheentity;and

• the cost or fair value of the asset can bemeasuredreliably.

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.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it isincurred.

An intangible asset arising fromdevelopment (or from thedevelopment phase of an internal project) is recognised when:• itistechnicallyfeasibletocompletetheassetsothatit

willbeavailableforuseorsale.• there is an intention to complete and use or sell it.• thereisanabilitytouseorsellit.• it will generate probable future economic benefits or

service potential.• there are available technical, financial and other

resources to complete the development and to use or sell the asset.

• the expenditure attributable to the asset during itsdevelopmentcanbemeasuredreliably.

Intangibleassetsarecarriedatcost lessanyaccumulatedamortisation and any accumulated impairment losses.

An intangible asset is regarded as having an indefiniteuseful life when, based on all relevant factors, there isno foreseeable limit to the period overwhich the asset isexpectedtogeneratenetcashinflowsorservicepotential.Amortisationisnotprovidedfortheseintangibleassets,buttheyaretestedforimpairmentannuallyandwheneverthereisanindicationthattheassetmaybeimpaired.Forallotherintangibleassetsamortisationisprovidedonastraight linebasisovertheirusefullife.

The amortisation period and the amortisation method for intangibleassetsarereviewedateachreportingdate.

Reassessingtheusefullifeofanintangibleassetwithafiniteuseful lifeafter itwasclassifiedas indefinite isan indicatorthat the asset may be impaired. As a result the asset istested for impairment and the remaining carrying amount is amortised over its useful life.

Internally generated brands, mastheads, publishing titles,customer lists and items similar in substance are notrecognisedasintangibleassets.

Amortisationisprovidedtowritedowntheintangibleassets,onastraightlinebasis,totheirresidualvaluesasfollows:

Item Useful lifeComputersoftware,other 3to6years

Intangibleassetsarederecognised:• ondisposal;or• whennofutureeconomicbenefitsorservicepotential

are expected from its use or disposal.

The gain or loss arising from the derecognition of an intangibleassets is included insurplusordeficitwhen theasset is derecognised (unless the Standard of GRAP on leasesrequiresotherwiseonasaleandleaseback).

1.4GRANTSANDPROJECTEXPENDITURE

Mandatory grants

Thegrantpayableandtherelatedexpenditurearerecognisedwhentheemployerhassubmittedanapplicationforagrantintheprescribedform,withintheagreeduponcut-offperiodandtheapplicationhasbeenapprovedasthepaymentthenbecomesprobable.Thisgrant isequivalent to20%(2016:20%)ofthetotalleviespaidbytheemployer.

Discretionary grants & project expenditure

A SETA may determine and allocate out of any surplus funds discretionary grants to employers, education and training providersandworkersoftheemployerswhohavesubmittedanapplicationforadiscretionarygrantintheprescribedformwithintheagreeduponcut-offperiod.Thegrantpayableandtherelatedexpenditurearerecognisedwhentheapplicationhasbeenapproved,traininghastakenplaceandconditionshavebeenmet.



Project expenditure comprises:• coststhatrelatedirectlytothespecificcontract;• coststhatareattributabletocontractactivityingeneral

andcanbeallocatedtotheproject;and• suchothercostsasarespecificallychargeabletothe

EWSETA under the terms of the contract.

Such costs are allocated using methods that are systematic and rational and are applied consistently to all costs having similar characteristics.

Discretionary grants and project costs are recognised asexpensesintheperiodinwhichtheyareincurred.Areceivableis recognised at the fair value of consideration received or receivable for incentive and other payments made to theextent of expenses not yet incurred in terms of the contract.

Retrospective adjustment by SARS

The SETA refunds amounts to the employers in the form of grants,basedontheinformationfromSARS.WhereSARSretrospectively amends the information on levies collected, it mayresultingrantsthathavebeenpaidtocertainemployersbeing in excess of the amounts the SETA is permitted tohave granted to employers. A receivable relating to theoverpayments to the employer in earlier periods is raised as the amount of suchgrant overpayment, net of baddebtsandprovisionforirrecoverableamounts.

1.5CONDITIONALGRANTSANDRECEIPTS

Revenue received from conditional grants, donations and funding is recognised as revenue to the extent that the EWSETAhascompliedwithanyoftheconditionsembodiedin the agreement. To the extent that the conditions have not beenmet,aliabilityisrecognised.

1.6BUDGETINFORMATION

General purpose financial reporting by entity shall provideinformationonwhetherresourceswereobtainedandusedinaccordancewiththelegallyadoptedbudget.

The approvedbudget is preparedon a accrual basis andpresentedbyfunctionalclassificationlinkedtoperformanceoutcomeobjectives.

The approved budget covers the fiscal period from2016/04/01 to 2017/03/31.

The Statement of comparative and actual information has been included in the annual financial statements asthe recommended disclosure when the annual financialstatements and the budget are on the same basis ofaccountingasdeterminedbyNationalTreasury.

Comparative information is not required.

1.7RELATEDPARTIES

The entity operates in an economic sector currently dominatedbyentitiesdirectlyorindirectlyownedbytheSouthAfrican Government. As a consequence of the constitutional independence of the three spheres of government in South Africa,onlyentitieswithinthenationalsphereofgovernmentareconsideredtoberelatedparties.

Management are those persons responsible for planning,directing and controlling the activities of the entity, including thosechargedwith thegovernanceof theentityinaccordancewith legislation, in instanceswhere theyarerequired to perform such functions.

Closemembersofthefamilyofapersonareconsideredtobethosefamilymemberswhomaybeexpectedtoinfluence,orbeinfluencedby,thatmanagementintheirdealingswiththe entity.

1.8EVENTSAFTERREPORTINGDATE

Eventsafterreportingdatearethoseevents,bothfavourableand unfavourable, that occur between the reporting dateandthedatewhenthefinancialstatementsareauthorisedforissue.Twotypesofeventscanbeidentified:• those that provide evidence of conditions that existed at

the reporting date (adjusting events after the reporting date);and

• those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

Theentitywilladjusttheamountrecognisedinthefinancialstatements to reflect adjusting events after the reportingdate once the event occurred.



The entity will disclose the nature of the event and anestimate of its financial effect or a statement that suchestimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influencetheeconomicdecisionsofuserstakenonthebasisofthefinancialstatements.

1.9 RESERVES

Net assets are sub-classified in the statement of financialpositionbetweenthefollowingfundsandreserves:• Administration reserve• Mandatory grant reserve• Discretionarygrantreserve

This sub-classification is made based on the restrictionsplacedonthedistributionofmoniesreceivedinaccordancewiththeregulationsissuedintermsoftheSkillsDevelopmentAct, 1998 (Act No. 97 of 1998).

InterestandpenaltiesreceivedfromSARSaswellasinterestreceived on investments are utilised for discretionary grants and projects. Other income received is utilised in accordance withtheoriginalsourceoftheincome.

The minimum amount retained in the administration reserve equatestothenetbookvalueofnoncurrentassets.

Surplus funds in the mandatory grant reserve are transferred tothediscretionarygrantreserveattheendofthefinancialyear. An amount is retained in the mandatory grant reserve, afterconsideration isgiven tonewcompanies.Mandatorygrant reserve is the mandatory grant payable to all newemployerswhointermsoftheregulationstillhavesixmonthsafterjoiningtosubmittheirworkplaceskillsplan.

1.10 FINANCIAL INSTRUMENTS

A financial instrument is any contract that gives rise toa financial asset of one entity and a financial liability or aresidual interest of another entity.

Theamortisedcostofafinancialassetorfinancialliabilityistheamountatwhichthefinancialassetorfinancialliabilityismeasured at initial recognition minus principal repayments, plusorminusthecumulativeamortisationusingtheeffectiveinterestmethodofanydifferencebetweenthatinitialamount

and the maturity amount, and minus any reduction (directly orthroughtheuseofanallowanceaccount)forimpairmentoruncollectability.

Creditriskistheriskthatonepartytoafinancialinstrumentwill cause a financial loss for the other party by failing todischargeanobligation.

Derecognition is the removal of a previously recognisedfinancialassetorfinancialliabilityfromanentity’sstatementoffinancialposition.

Afinancialassetis:• cash;• aresidualinterestofanotherentity;or• a contractual right to: - receive cash or another financial asset from

anotherentity;or - exchange financial assets or financial liabilities

with another entity under conditions that arepotentiallyfavourabletotheentity.

Afinancialliabilityisanyliabilitythatisacontractualobligationto:• delivercashoranotherfinancialassettoanotherentity;

or• exchange financial assets or financial liabilities under

conditionsthatarepotentiallyunfavourabletotheentity.

Interestrateriskistheriskthatthefairvalueorfuturecashflows of a financial instrument will fluctuate because ofchangesinmarketinterestrates.

Liquidityriskistheriskencounteredbyanentityintheeventofdifficulty inmeetingobligationsassociatedwithfinancialliabilities that are settled by delivering cash or anotherfinancialasset.

Loanspayablearefinancial liabilities,otherthanshort-termpayablesonnormalcreditterms.

Transaction costs are incremental costs that are directly attributabletotheacquisition,issueordisposalofafinancialasset or financial liability. An incremental cost is one thatwouldnothavebeenincurrediftheentityhadnotacquired,issuedordisposedofthefinancialinstrument.



Financial instruments at amortised cost are non-derivative financialassetsornon-derivativefinancialliabilitiesthathavefixedordeterminablepayments,excludingthoseinstrumentsthat:• theentitydesignatesatfairvalueatinitialrecognition;or• are held for trading.

Initial recognition

Theentityrecognisesafinancialassetorafinancialliabilityinitsstatementoffinancialpositionwhentheentitybecomesaparty to the contractual provisions of the instrument.

Financial assets

Allfinancialassetsoftheentityarecategorisedasloansandreceivables. The classification depends on the nature andpurposeofthefinancialassetsandisdeterminedatthetimeof initial recognition.

Cash and cash equivalents

Cashandcashequivalentscomprisebalancesheldatbanksand short term investments and are at amortised cost, which,duetotheirshort-termnature,closelyapproximatestheir fair value.

Financial assets at amortised cost

EWSETA classifies receivables from exchange and non-exchangetransactionsasfinancialassetsatamortisedcostand measures these using the effective interest method.Thesesfinancialassetsarenotquoted inanactivemarketandhavefixedordeterminablepaymentsasdefinedinthestatement of Generally Recognised Accounting Practice.

Impairment of financial assets

Financial assets are assessed for impairment at each year-end.

Financial assets are impaired where there is objectiveevidence that, as a result of one or more events that occurred after the initial recognition of the financial asset,theestimatedfuturecashflowoftheinvestmenthavebeenimpacted. For financial assets carried at amortised cost,theamountoftheimpairmentisthedifferencebetweenthe

asset’s carrying amount and the present value of estimated futurecashflows,discountedattheoriginaleffectiveinterestrate.

The carrying amount of the financial asset is reducedby the impairment loss directly for all financial assetswith the exception of receivables from non-exchangetrasactionswhere the carrying amount is reduced throughtheuseofanallowanceaccount.Whenatradereceivableisuncollected, it iswrittenoffagainsttheallowanceaccount.Subsequent recoveries of amounts previously written offarecreditedagainsttheallowanceaccount.Changesinthecarryingamountoftheallowanceaccountarerecognisedinsurplusordeficitfortheyear.

Financial liabilities

All financial liabilitiesof theentityareclassifiedasfinancialliabilities at amortised cost. The classification dependson thenatureandpurposeof thefinancial liabilitiesand isdetermined at the time of initial recognition.

Effective interest method

TheeffectiveInterestmethodisamethodofcalculatingtheamortisedcostofafinancialassetandofallocatinginterestincomeover the relevantperiod.Theeffective interest rateis the rate that exactly discounts estimated future cash receiptsthroughtheexpectedlifeofthefinancialasset,or,whereappropriate,ashorterperiod.

1.11 LEASES

A lease is classified as a finance lease if it transferssubstantiallyalltherisksandrewardsincidentaltoownership.A lease is classified as an operating lease if it does nottransfersubstantiallyall therisksandrewards incidental toownership.

Operating leases - lessee

Operating lease payments are recognised as an expense onastraight-linebasisover the leaseterm.Thedifferencebetween the amounts recognised as an expense and thecontractual payments are recognised as an operating lease assetorliability.



1.12EMPLOYEEBENEFITS

Employeebenefitsareallformsofconsiderationgivenbyanentityinexchangeforservicerenderedbyemployees.

Short-term employee benefits

Short-termemployeebenefitsareemployeebenefits(otherthan terminationbenefits) thataredue tobesettledwithintwelve months after the end of the period in which theemployees render the related service.

Short-termemployeebenefitsincludeitemssuchas:• wages,salariesandlongserviceleave;• short-termcompensatedabsences(suchaspaidannual

leaveandpaidsickleave)wherethecompensationfortheabsencesisduetobesettledwithintwelvemonthsafter the end of the reporting period in which theemployeesrendertherelatedemployeeservice;

• bonus-,incentive-andperformance-relatedpaymentspayable within twelve months after the end of thereporting period in which the employees render therelatedservice;and

• non-monetarybenefits(forexample,medicalcare,andfreeorsubsidisedgoodsorservicessuchashousing,cars and cellphones) for current employees.

When an employee has rendered service to the entity during a reporting period, the entity recognises the undiscounted amount of short-term employee benefits expected to bepaid in exchange for that service:• as a liability (accrued expense), after deducting any

amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits,the entity recognises that excess as an asset (prepaid expense)totheextentthattheprepaymentwillleadto,for example, a reduction in future payments or a cash refund;and

• as an expense, unless another Standard requires or permits the inclusionof thebenefits in thecostofanasset.

Theexpectedcostofcompensatedabsencesisrecognisedas an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences,when theabsenceoccurs. Theentitymeasuretheexpectedcostofaccumulatingcompensatedabsences

as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

Theentityrecognisestheexpectedcostofbonus,incentiveandperformancerelatedpaymentswhentheentityhasapresentlegalorconstructiveobligationtomakesuchpaymentsasaresultofpasteventsandareliableestimateof theobligationcanbemade.Apresentobligationexistswhentheentityhasnorealisticalternativebuttomakethepayments.

1.13PROVISIONSANDCONTINGENCIES

Provisionsarerecognisedwhen:• theentityhasapresentobligationasaresultofapast

event;• it isprobablethatanoutflowofresourcesembodying

economicbenefitsorservicepotentialwillberequiredtosettletheobligation;and

• areliableestimatecanbemadeoftheobligation.

The amount of a provision is the best estimate of theexpenditure expected to be required to settle the presentobligationatthereportingdate.

Where the effect of time value of money is material, theamount of a provision is the present value of the expenditures expectedtoberequiredtosettletheobligation.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party,the reimbursement is recognised when, and only when,it is virtually certain that reimbursementwill be received ifthe entity settles the obligation. The reimbursement istreated as a separate asset. The amount recognised for the reimbursementdoesnotexceedtheamountoftheprovision.

Provisionsarereviewedateachreportingdateandadjustedtoreflectthecurrentbestestimate.Provisionsarereversedif it is no longer probable that an outflow of resourcesembodying economic benefits or service potential will berequired,tosettletheobligation.

Where discounting is used, the carrying amount of a provision increasesineachperiodtoreflectthepassageoftime.Thisincrease is recognised as an interest expense.



A provision is used only for expenditures for which theprovisionwasoriginallyrecognised.

Provisionsarenotrecognisedforfutureoperatingdeficits.

If an entity has a contract that is onerous, the present obligation(netofrecoveries)underthecontractisrecognisedand measured as a provision.

Contingent assets and contingent liabilities are notrecognised. Contingencies are disclosed in note 27.

1.14REVENUEFROMEXCHANGETRANSACTIONS

Revenueisthegrossinflowofeconomicbenefitsorservicepotential during the reporting period when those inflowsresult in an increase in net assets.

Fair value is the amount for which an asset could beexchanged, or a liability settled, between knowledgeable,willingpartiesinanarm’slengthtransaction.

Measurement

Revenue is measured at the fair value of the consideration receivedor receivable, net of tradediscounts and volumerebates.

1.15REVENUEFROMNON-EXCHANGETRANSACTIONS

Revenuecomprisesgross inflowsof economicbenefitsorservicepotentialreceivedandreceivablebyanentity,whichrepresents an increase in net assets, other than increases relatingtocontributionsfromowners.

Conditions on transferred assets are stipulations that specifythatthefutureeconomicbenefitsorservicepotentialembodied in theasset is required tobeconsumedby therecipientasspecifiedorfutureeconomicbenefitsorservicepotentialmustbereturnedtothetransferor.

Controlofanassetarisewhentheentitycanuseorotherwisebenefit from the asset in pursuit of its objectives and canexcludeorotherwise regulate theaccessofothers to thatbenefit.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entityeitherreceivesvaluefromanotherentitywithoutdirectlygiving approximately equal value in exchange, or gives value to another entity without directly receiving approximatelyequal value in exchange.

Recognition

An inflow of resources from a non-exchange transactionrecognised as an asset is recognised as revenue, except to theextentthataliabilityisalsorecognisedinrespectofthesameinflow.

As the entity satisfies a present obligation recognised asa liability in respect of an inflowof resources froma non-exchange transaction recognised as an asset, it reduces the carryingamountoftheliabilityrecognisedandrecognisesanamount of revenue equal to that reduction.

Measurement

Revenue from a non-exchange transaction is measured at theamountoftheincreaseinnetassetsrecognisedbytheentity.

When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise aliability.Wherealiabilityisrequiredtoberecogniseditwillbemeasuredasthebestestimateoftheamountrequiredtosettle theobligationat thereportingdate,andtheamountof the increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because thetaxableeventoccursoraconditionissatisfied,theamountofthereductionintheliabilityisrecognisedasrevenue.

Levy income

In termsof section 3(1) and3(4) of theSkillsDevelopmentLevies Act, 1999 (Act No. 9 of 1999), registered membercompanies of the Energy and Water Sector Education and Training Authority (EWSETA) pay a skills development levyof1%ofthetotalpayrollcosttotheSouthAfricanRevenueServices(SARS).CompanieswithanannualpayrollcostlessthanR500000areexemptedinaccordancewithsection4(b)oftheSDLAct(1999)asamended,effective1August2005.



Eighty percent (80%) of skills development levies are paidover to the EWSETA (net of the 20% contribution to theNationalSkillsFund).

Theskillsdevelopmentlevyreceivedisallocatedasfollows:• 10.5%Administrationexpenses• 49.5%Discretionarygrantexpenses• 20%Mandatorygrantexpenses

Skills Development Levy (SDL) transfers are recognizedwhenitisprobablethatfutureeconomicbenefitwillflowtotheSETAandthesebenefitscanbemeasuredreliably.ThisoccurswhentheDepartmentofHigherEducation&Training(DHET) eithermakes an allocation or payment, whicheveroccurs first, to theSETA, as requiredbySection8 of theSkillsDevelopmentLeviesAct,1999(ActNo.9of1999).TheSDLtransferismeasuredatthefairvalueoftheconsiderationreceivableorreceived.

A receivable/payable is recognised for levies receivableaswell as estimated SARS adjustments. An estimate, dueto retrospective adjustments by SARS, is calculated bycomparing the amounts paid by the Employers to SARSandtheamountsreceivedfromDHET.Changestoprioryearestimates are accounted for in revenue in the current period. LeviesreceivedfromorganisationswhosepayrollislessthanR500,000 per annum are not recognised as income, as in termsoftheSkillsDevelopmentLeviesAct,theseemployersshould not contribute, therefore amounts contributed bythese employers are refunded.

The EWSETA refunds amounts to employers in the form ofgrants,basedon information fromSARS.WhereSARSretrospectively amends the information on levies collected, it mayresultingrantsthathavebeenpaidtocertainemployersbeing in excess of the amount the EWSETA is permittedtohavegranted toemployers.A receivable relating to theoverpayment to the employer in earlier periods is raised at the amount of such grant over payment, at the fair value of theconsiderationreceivableorreceived.

Revenue is adjusted for inter-SETA transfers due to employers changing SETAs. Such adjustments are separately disclosed as inter-SETA transfers. The amount of the interest adjustment is calculated according to the StandardOperatingProcedureissuedbyDHET.

When a new employer is transferred to the EWSETA, thelevies transferred by the former SETA are recognised asrevenue and allocated to the respective category to maintain its original identity.

Governmentleviesincomeisincomereceivedorreceivablefrom the departments.

Interest and penalties

Interest and penalties on the skills development levy isrecognisedwhen it accrues to the entity,when theDHETmakesanallocationorwhenapaymentisreceivedwhicheveroccursfirst.

1.16 INVESTMENT INCOME

Investmentincomeisrecognisedonatime-proportionbasisusingtheeffectiveinterestmethod.

1.17 COMPARATIVE FIGURES

Wherenecessary,comparativefigureshavebeenreclassifiedto conform to changes in presentation in the current year.

1.18FRUITLESSANDWASTEFULEXPENDITURE

Fruitless and wasteful expenditure means expenditurewhichwasmadeinvainandwouldhavebeenavoidedhadreasonablecarebeenexercised.

Allexpenditurerelatingtofruitlessandwastefulexpenditureis recognised as an expense in the statement of financialperformanceintheyearthattheexpenditurewasincurred.Theexpenditureisclassifiedinaccordancewiththenatureof the expense, and where recovered, it is subsequentlyaccounted for as revenue in the statement of financialperformance.



1.19IRREGULAREXPENDITURE

Irregularexpenditureasdefinedinsection1ofthePFMAisexpenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with arequirementofanyapplicablelegislation,including:(a) thisAct;or(b) National Treasury Regulations issued in terms of the

PFMA;oranyregulationissuedintermsofthePFMA(c) any provincial legislation providing for procurement

procedures in that provincial government.

NationalTreasurypracticenoteno.4of2008/2009whichwasissuedintermsofsections76(1)to76(4)ofthePFMArequiresthefollowing(effectivefrom1April2008):

Irregularexpenditurethatwasincurredandidentifiedduringthe current financial period and which was condonedbefore year end and/or before finalisation of the financialstatements, thenotes to thefinancial statementsmustbeupdated accordingly.

Irregularexpenditurethatwasincurredandidentifiedduringthe current financial year and for which condonement isbeingawaitedatyearendmustbeincludedinthenotestofinancialstatements.

Where irregular expenditure was incurred in the previousfinancialyearandisonlycondonedinthefollowingfinancialyear, the register and the disclosure note to the financialstatementsmustbeupdatedwiththeamountcondoned.

Ifliabilityfortheirregularexpenditurecanbeattributedtoaperson,adebtaccountmustbecreatedifsuchapersonisliable in law. Immediate stepsmust thereafter be taken torecover the amount from the person concerned. If recovery isnotpossible,theaccountingofficeroraccountingauthoritymaywriteofftheamountasdebt impairmentanddisclosesuch intherelevantnotetothefinancialstatements. If theirregularexpenditurehasnotbeencondonedandnopersonisliableinlaw,theexpenditurerelatedtheretomustremainagainsttherelevantexpenditureitem,bedisclosedassuchinthenotetothefinancialstatements.

1.20 SEGMENT INFORMATION

Segmentsare identifiedbytheway inwhich information isreported to management, both for purpose of assessingperformance and making decisions about how futureresourceswillbeallocatedtothevariousactivitiesundertakenby EWSETA. Segment information is presented based onservice.

Major classification of activities identified in the budgetreflects segments which EWSETA reports information tomanagement.Servicesegments relate toadistinguishablecomponent of EWSETA which provides specific outputsor achieves particular operating objectives that are in linewith the entity’s overall mission. EWSETA’s segments areadministation, mandatory and discretionary activities.



2. NEW STANDARDS AND INTERPRETATIONS

2.1 STANDARDSANDINTERPRETATIONSEFFECTIVEANDADOPTEDINTHECURRENTYEAR

Inthecurrentyear,theentityhasadoptedthefollowingstandardsandinterpretationsthatareeffectiveforthecurrentfinancialyear and that are relevant to its operations:

Standard/ Interpretation Effectivedate:Yearsbeginningonorafter Expected impact:

GRAP 18 (as amended 2016): Segment Reporting 01 April 2015 The adoption of this has not had a material impact on the results of thecompany,buthasresultedinmoredisclosurethanwouldhavepreviouslybeenprovidedinthefinancialstatements

2.2 STANDARDSANDINTERPRETATIONSISSUED,BUTNOTYETEFFECTIVE

Theentityhasnotappliedthefollowingstandardsandinterpretations,whichhavebeenpublishedandaremandatoryfortheentity’saccountingperiodsbeginningonorafter01April2017orlaterperiods:

Standard/ Interpretation Effectivedate:Yearsbeginningonorafter Expected impact

GRAP 34: Separate Financial Statements Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

GRAP 35: Consolidated Financial Statements Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

GRAP 36: Investments in Associates and Joint Venture Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

GRAP 37: Joint Arrangements Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

GRAP38:DisclosureofInterestsinOtherEntities Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

GRAP 110: Living and Non-living Resources Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

IGRAP 18: Interpretation of the Standard of GRAP on RecognitionandDerecogntionofLand

Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

GRAP 20: Related parties Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

GRAP109:AccountingbyPrincipalsandAgents Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

GRAP108:StatutoryReceivables Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

GRAP 32: Service Concession Arrangements: Grantor Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

IGRAP17:ServiceConcessionArrangementswhereaGrantorControlsaSignificantResidualInterestinanAsset

Noeffectivedatehasbeendetermined Unlikelytohavematerialimpact

Notes to the Annual Financial Statementsfor the year ended 31 March 2017


2017R ‘000

2016R ‘000

3. RECEIVABLES FROM EXCHANGE TRANSACTIONS

Tradereceivables40,473 2,041

Deposits 235 235Investmentinterestreceivable 2,409 1,741Staffdebtors 549 654

43,666 4,671

4. RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS

Employergrantreceivables7,120 7,176

InterSETAdebtors 495 375Discretionarygrantreceivable 659,944 4,725

667,559 12,276

5. PREPAYMENTS

Prepayments 21,887 47,573

6. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of:Cash on hand 1 2Bankbalances 391,846 261,854Short-term investments/instruments 85,550 85,299

477,397 347,155

Cashandcashequivalentsconsistofcurrentaccountbankbalancesandshortterminvestments.



7. PROPERTY, PLANT AND EQUIPMENT

2017 2016

Cost / Valuation

Accumulated depreciation and

accumulated impairment

Carrying value

Cost / Valuation



Carrying value

Buildings 39,827 - 39,827 38,693 - 38,693Furnitureandfixtures 1,753 (453) 1,300 1,453 (603) 850Motor vehicles 283 (130) 153 283 (104) 179Officeequipment 161 (49) 112 152 (38) 114Computer equipment 1,768 (549) 1,219 1,423 (534) 889Leasehold improvements 638 (561) 77 619 (487) 132Total 44,430 (1,742) 42,688 42,623 (1,766) 40,857

Reconciliation of property, plant and equipment - 2017Opening balance Additions Disposals Depreciation Total

Buildings 38,693 1,134 - - 39,827Furnitureandfixtures 850 545 - (95) 1,300Motor vehicles 179 - - (26) 153Officeequipment 114 9 - (11) 112Computer equipment 889 584 (37) (217) 1,219Leasehold improvements 132 19 - (74) 77

40,857 2,291 (37) (423) 42,688

Reconciliation of property, plant and equipment - 2016Openingbalance Additions Disposals Depreciation Impairment

loss Total

Buildings 21,660 17,033 - - - 38,693Furnitureandfixtures 773 137 - (60) - 850Motor vehicles 215 - - (36) - 179Officeequipment 131 9 (12) (14) - 114Computer equipment 841 219 (20) (142) (9) 889Leasehold improvements 325 - - (193) - 132

23,945 17,398 (32) (445) (9) 40,857

Noassetshavebeenpledgedassecurityorcollateralforanyliability.

EWSETAhaspurchasedtheCapeHouseon15McClarenStreet,MarshallsTown,JohannesburgforR21,660,000.Thebuildingiscurrentlyunderrenovation;R18millionofrenovationcostshavebeencapitalised.Itisnotyetavailableforoccupationthusdepreciationhasnotcommenced.Therenovationofthebuildingistakinglongerperiodtimethanexpected due to contractual delays.

The amount of R52,146.41 relates to the repairs and maintenance of property, plant and equipment. Included in the repairsandmaintenanceisR42,093.41whichrelatestomaintenanceofleaseholdimprovementandR8,948.03relatestomaintenance of the vehicles.



8. INTANGIBLE ASSETS

2017 2016

Cost / Valuation



Carrying value

Cost / Valuation



Carrying value

Computersoftware 5,037 (2,227) 2,810 2,900 (1,280) 1,620

Reconciliation of intangible assets - 2017

Opening balance Additions Transfers Amortisation Total

Computersoftware 1,620 336 1,904 (1,050) 2,810

Reconciliation of intangible assets - 2016

Opening balance Additions Amortisation Total

Computersoftware 2,415 37 (832) 1,620

Other informationThecostandaccumulatedamortisationverygofintangibleassetsnolongerinusehasbeenderecognisedinthecurrentyear.

9. INTANGIBLE ASSETS UNDER DEVELOPMENT

2017R ‘000

2016R ‘000

Management Information System - 1,904

TheEWSETAcommissionedaprojectforthedevelopmentofanewManagementInformationSystemtobeusedforthemanagementofgrants.Asat31March2016twomodulesfromthesystemwerenotyetavailableforuse.

10. OPERATING LEASE LIABILITY

Operating lease accrual - 87Total of future minimum lease payments under non-cancellable operating leasesWithin one year - 640

Theoperatingleaseliabilityrelatestotheleaseofofficeequipmentandaccommodation.Theleaseamountspayableescalateatbetween9%and15%perannum.

11. PAYABLES FROM EXCHANGE TRANSACTIONS

Tradepayables 1,573 3,888Accrued leave pay 3,315 2,673Payroll accruals 1,686 1,125Accrued expenses 9,886 7,956Sundrypayables 1,719 434

18,179 16,076



2017R ‘000

2016R ‘000

12. PAYABLES FROM NON-EXCHANGE TRANSACTIONS

InterSETApayables 81 66Skillsdevelopmentgrantspayable-mandatory 24,512 29,883Skillsdevelopmentgrantspayable-discretionary 53,229 29,340

77,822 59,289

13. UNSPENT CONDITIONAL GRANTS AND RECEIPTS

Unspent conditional grants and receiptsDepartmentofWaterandSanitation 66,176 19,038

Movement during the yearBalanceatthebeginningoftheyear 19,038 -Additions during the year 1,213,609 356,281Income recognition during the year (1,166,471) (337,243)

66,176 19,038

EWSETAreceivedfundsfromtheDepartmentofWaterandSanitationthatmayonlybeutilisedfortheimplementationofaspecifictrainingprogramme.Thefundsreceivedinadvancewererecognisedasaliabilityandtherevenueisrecognisedwhencorrespondingexpenditurehasbeenincurred.

14. PROVISIONS

Reconciliation of provisions - 2017

Opening Balance Additions

Utilised during the

year

Reversed during the

yearTotal

Provision for employer refund 777 160 - (255) 682Provision for discretionary grant 20,448 681,692 (1,499) - 700,641

21,225 681,852 (1,499) (255) 701,323

Reconciliation of provisions - 2016Provision for employer refund 915 146 - (284) 777Provision for discretionary grant 22,439 7,244 (9,235) - 20,448

23,354 7,390 (9,235) (284) 21,225

TheprovisionrelatestoleviescontributedbyemployerswhosepayrollislessthanR500,000(belowthreshold)peryear.

AsperNationalTreasuryCircularno9/2013,theSETAcanabsorbtodiscretionaryreserveanyamountthatisduetothebelowthresholdemployerswhichisolderthanfiveyears.



2017R ‘000

2016R ‘000

15. NON- EXCHANGE REVENUE

Skills development levy incomeThetotallevyincomereceivedpertheStatementofFinancialPerformanceisasfollows:

AdministrationLevies received from SARS 36,872 31,795Government levies received 896 995Inter-SETA transfers In 34 12Inter-SETA transfers Out (3) -

37,799 32,802Employer GrantsLevies received from SARS 70,910 61,077Inter-SETA transfers In 67 22

70,977 61,099Discretionary GrantsLevies received from SARS 173,687 150,741Government levies received 1,793 1,989Inter-SETA transfers In 168 56Inter-SETA transfers Out (12) -

175,636 152,786Total skills development income 284,412 246,689Interest and penalties income received from SARSPenalties 1,395 5,675Interest 1,221 961

2,616 6,636Special Project IncomeGovernmentgrants&subsidies 1,166,471 337,243Total non- exchange revenue 1,453,499 590,568

TheGovernmentleviesreceivedrepresenttheskillsdevelopmentleviesreceivedfromTheDepartmentofEnergy(DoE)andTheDepartmentofWaterandSanitation('DWS)theleviesmaybeusedforadministrationandDiscretionarygrantexpensesinaccordancewithSkillsDevelopmentRegulations.

SpecialprojectincomerelatestoincomereceivedfromTheDepartmentofWaterandSanitationfortheWaronLeaksproject and the SETA is overseeing the training part of the project.



2017R ‘000

2016R ‘000

16. EXCHANGE REVENUE

Other income 37 44

Otherincomerelatestoverificationincomeandexpenserecoveries.

17. INVESTMENT REVENUE

Interest revenueBank 21,322 15,284Interestreceivable 2,409 1,741

23,731 17,025

Interestrevenueisearnedfromshort-terminvestmentsandthepositivebankbalancesontheentity'scurrentaccounts.Interestwasearnedonboththeshortterminvestmentsandpositivebankbalancesatarateofbetween6.00%and6.45%through-out the year.

18. EMPLOYER GRANT AND PROJECT EXPENSES

Mandatory grantsDisbursed 21,340 35,473Movement in provision and accruals 1,160 20,042

22,500 55,515Discretionary grantsDisbursed 111,970 17,944External Moderation 920 507Movement in provision and accruals 43,877 7,382QualificationDevelopment 2,769 1,720Project Administration Expenses 10,973 5,829Support of Emerging Providers 63 567

170,572 33,949Special projectsDisbursed 510,150 463,816Movement in provision and accruals 656,322 7,041Total employer grant and project expenses 1,359,544 560,321



2017R ‘000

2016R ‘000

19. ADMINISTRATIVE EXPENDITURE

Accommodation 702 706Advertising 682 778Auditors remuneration 2,731 2,091Bankcharges 87 46Computer expenses 2,898 2,454Consulting and professional fees 3,779 3,975Documentstorage 182 112Donations 281 -Entertainment 109 169Fines and penalties 5 129Governance committee fees 1,357 649Insurance 159 155Internal audit fees 286 953Legal expenses 1,096 1,767Licence fees 383 320Marketingandcommunication 1,298 1,630Meeting expenses - 24Operating lease rentals: Equipment 413 410Operating lease rentals: Premises 3,608 2,987Membershipfees 20 7Other rental expenses 419 371Postage and courier 113 83Printing and stationery 1,796 1,587QCTO expenses 1,181 805Repairs and maintenance 160 148Smallassetswrittenoff 99 249Staffrecruitmentcosts 913 243Stafftraininganddevelopment 408 191Staffwelfare 399 164Subscriptionsandmembershipfees 27 23Telephone and fax 1,291 1,324Travel 1,217 1,761Water and electricity 532 573Workshopexpenses 1,403 2,114

30,034 28,998



2017R ‘000

2016R ‘000

20. EMPLOYEE RELATED COSTS

Salaryandwages 30,266 27,598Medicalaid-companycontributions 192 192Unemployment insurance fund 115 91Skillsdevelopmentlevy 306 222Leave payments 677 777Provident fund 1,754 1,255Other insurances 684 327

33,994 30,462

21. DEPRECIATION AND AMORTISATION

Property, plant and equipment 411 415Intangibleassets 1,050 832

1,461 1,247

22. FINANCE COSTS

Interest on NSF infrastructure funding - 406

TheamountrecognisedrepresentsthediscountedvalueofthepresentobligationoftheNSF-FETinfrastructuredevelopmenttakingintoaccountinterestrateof6.5%whichisthegovernmentbondrateasat29August2013.Theobligationwassettledintheprioryear.



23. ACCUMULATED SURPLUS

Allocation of net surplus for the year to reserves 2017

Administration Reserve

Mandatory Grant

Reserve

DiscretionaryGrantsReserve Total perStatement of

FinancialPerformance

DiscretionaryGrants

Special Projects

Total Discretionary

RevenueSkillsdevelopmentlevy:income 36,903 70,977 173,843 - 173,843 281,723Government levies 896 - 1,793 - 1,793 2,689Penalties and interest - - 2,616 - 2,616 2,616Investment income - - 23,731 - 23,731 23,731Special project income - - - 1,166,471 1,166,471 1,166,471Other income 37 - - - - 37Total revenue 37,836 70,977 201,983 1,166,471 1,368,454 1,477,267Expenses Administration costs:- Administration expenses (30,063) - - - - (30,063)- Employee costs (33,994) - - - - (33,994)-Depreciationandamortisation (1,461) - - - - (1,461)- Loss on disposal of asset (37) - - - - (37)Employer grants and project expenses - (22,500) (170,575) (1,166,471) (1,337,046) (1,359,546)Total expenses (65,555) (22,500) (170,575) (1,166,471) (1,337,046) (1,425,101)

(27,719) 48,477 31,408 - 31,408 52,166

Allocation of net surplus for the year to reserves 2016RevenueSkillsdevelopmentlevy:income 31,807 61,099 150,798 - 150,798 243,704Government levies 995 - 1,989 - 1,989 2,984Penalties and interest - - 6,636 - 6,636 6,636Investment income - - 17,025 - 17,025 17,025Special project income - - - 337,243 337,243 337,243Other income 44 - - - - 44Total revenue 32,846 61,099 176,448 337,243 513,691 607,636Expenses Administration costs:- Administration expenses (28,998) - - - - (28,998)- Employee costs (30,462) - - - - (30,462)-Depreciationandamortisation (1,247) - - - - (1,247)- Loss on disposal of asset (33) - - - - (33)Employer grants and project expenses - (55,515) (33,948) (470,858) (504,806) (560,321)Finance costs - - (406) - (406) (406)

(60,740) (55,515) (34,354) (470,858) (505,212) (621,467)(27,894) 5,584 142,094 (133,615) 8,479 (13,831)



24. CASH GENERATED FROM (USED IN) OPERATIONS

2017R ‘000

2016R ‘000

Surplus(deficit) 52,166 (13,831)Adjustments for:Depreciationandamortisation 1,461 1,247Lossonderecognitionofassetsandliabilities 37 33Movements in operating lease assets and accruals (87) (310)Movements in provisions 680,098 (2,129)Changes in working capital:Receivablesfromexchangetransactions (38,995) (1,215)Receivablesfromnon-exchangetransactions (655,283) (6,700)Prepayments 25,686 (7,859)Payablesfromexchangetransactions 2,101 3,778Payablesfromnon-exchangetransactions 18,533 5,574Unspent conditional grants and receipts 47,138 19,038

132,855 (2,374)

25. FINANCIAL INSTRUMENTS DISCLOSURE

Categories of financial instruments

At fair value At amortised cost Total

2017Financial assetsReceivablesfromexchangetransactions - 6,411 6,411Receivablesfromnon-exchangetransactions - 667,559 667,559Cash and cash equivalents 477,843 - 477,843

477,843 673,970 1,151,813Financial liabilitiesPayablefromexchangetransactions 18,179 18,179Payablesfromnon-exchangetransactions 77,807 77,807

95,986 95,9862016Financial assetsReceivablesfromexchangetransactions - 4,671 4,671Receivablesfromnon-exchangetransactions - 12,276 12,276Cash and cash equivalents 347,155 - 347,155

347,155 16,947 364,102Financial liabilitiesPayablesfromexchangetransactions 16,076 16,076Payablesfromnon-exchangetransactions 59,289 59,289

75,365 75,365



26. COMMITMENTS

Total commitmentsOpening balance

2016/2017 AdjustmentsApproved

2016/2017Utilised

2016/2017Closingbalance

2016/2017R'000 R'000 R'000 R'000 R'000

Learnerships 2,364 (1,583) 72,881 (28,578) 45,084Apprenticeships 11,101 (2,889) 13,800 (3,102) 18,910AET 274 (260) 375 (125) 264Bursaries 3,756 (1,480) 21,078 (1,655) 21,699Internship 20,671 (427) 15,060 (22,595) 12,709Matric Intervention - - 9,000 (5,400) 3,600SkillsProgramme 312 (120) 20,955 (9,116) 12,031Special Projects - - - - -ABET Programme 1,650 (1,400) - - 250Apprenticeship Programme 164,328 943 2,205,956 (1,158,815) 1,212,412Bursaries 2,870 (1,532) 3,885 (1,156) 4,067Career Guidance 1,292 (1,292) - - -Infrastructure - 2,597 - (1,299) 1,298Internships 15,941 (14,318) 20,100 (4,608) 17,115Learnerships 49,684 3,274 - (28,391) 24,567NewVenture 11,780 - - (8,966) 2,814Research 6,039 - - (1,962) 4,077SkillsProgramme 39,000 (2,787) 324 (22,523) 14,014

331,062 (21,274) 2,383,414 (1,298,291) 1,394,911

Adjustmentsrelatestodiscretionarygrantprojectswherecontractshadexpiredandnotmoving,thefundswereallocatedtoothernewprojects.

TheabovecommitmentsrelatestodiscretionarygrantswithanexceptionofaspecialprojectwiththeclosingbalanceofofR1,183,822,600relatingtotheWaronLeaksprojectthatisfullyfundedbytheDepartmentofWaterandSanitation.DepartmentofWaterandSanitationisarelatedparty.



27. CONTINGENCIES

Contingency for discretionary grants

2017R ‘000

2016R ‘000

Learnerships 727 727

ThebeneficiaryrelatingtotheprojectabovehastakentheEWSETAtothepublicprotectorforallegedunfairwithdrawalofa learnership project.

Legal matters

DiscretionaryGrantProjectbeneficiaryinstitutedaclaimforunpaidDiscretionarygrantintheRegionalCourtforthedivisionofGautengduring2012and2014andthematterwasheardonthe11December2015butwaspostponedbythecourt.

AserviceproviderhasinstitutedaclaimagainstEWSETAfortheservicesallegedtohavebeenrenderedfromDecember2011toDecember2012intheJohannesburgMagistrateCourt.EWSETAisdefendingtheclaimonthebasisthatsuchservicesasallegedwerenotrendered.ClaimagainstEWSETAamountstoR138,510.00.

First time employer registrations

TheSkillsDevelopmentlegislationallowsanemployerregisteringforthefirsttime,6monthstosubmitanapplicationforamandatory grant.

Atthereportingdate,itisestimatedthatadditionalmandatorygrantexpenditureofR87,855(2015/2016:R156,849)willbepayabletosuchemployers.Thisamountiscontingentuponthenumberofsubmissionsreceivedandapproved.

Contingent assets

Atthereportingdate,R65millionwasrequestedfromtheDepartmentofWaterandSanitationforprojectadministrationofPhase2oftheWaronLeaksproject.

Surplus funds

Alluncommittedsurplusfundsasatyear-endmaybeforfeitedtotheNationalSkillsFundshouldanapplicationforretentionofsurplusfundsbedenied.AnapplicationtoNationalTreasuryandDHETfortheretentionofuncommittedsurplusfundshasbeensubmitted.AsinthepreviousyearEWSETAexpectsthatNationalTreasurywillapprovetheretentionofsurplusfunds.



28. RELATED PARTIES`Relationships

Controlling entity DepartmentofHigherEducationandTraining

Entities under common control ByvirtueofthefactthatEWSETAisaNationalPublicEntitycontrolledbytheDHETitisconsideredrelatedtootherSETAs,theQCTOandNSF.Thetransactionsareconsideredwithnormaloperatingrelationshipsbetweenentitiesandareundertakenontermsandconditionsthatarenormalforsuchtransactions.WherethereweretransactionsandbalancesarisingduetothemovementoffundsbetweenentitiesundercommoncontroloftheDHET,theseamountsaredisclosedbelow.

Entities with the representative ESKOM (R. Moodley) serving on EWSETA’s Accounting Authority DWS(P.Ramunenyiwa) DOE(vacant) DPE(Vacant) NIASA(K.Msebenzi) IMATU(K.Swanepoel) NUM(M.Sekano,T.Montoedi) NUMSA (S. Nhlapo - deceased) SAMWU (J. Sera) Members of the Accounting Authority F. Baleni (Chairperson) O. Besnaar R. Moodley M.Sekano J. Sera K.Swanepoel K.Msebenzi P.Ramunenyiwa T. Montoedi S. Nhlapo - deceased T. Phadu

Members of key management G.Gradwell(CEO) I. Molete (COO) M.Mookapele(CFO) C. Moodley (CSE) T.Mokotedi(ASCSE)



2017R ‘000

2016R ‘000

28. RELATED PARTIES (CONTINUED)

Related party balancesAmounts included in Trade receivable (Trade Payable) regarding related partiesDHET 73 73FOODBEVSETA 5 5LG SETA 20 20MERSETA 147 28PSETA 55 55MQA (5) (5)SERVICES SETA 33 33W&R SETA (38) (23)MICT SETA 36 36CETA 88 88

Discretionary grants and projects - Entities with a representative serving on EWSETA's Accounting AuthorityDWS 590,146 -

EWSETAhas,inthenormalcourseofitsoperations,eneteredintocertaintransactionswithentitieswhichhadanappointedrepresentative serving on the EWSETA Accounting Authority.

Thetransactionsaboveoccurredundertermsthatwerenomorefavourablethanthoseavailableinsimilararm'slengthdealings.Thetransactionsdisclosedexcludethetransactionsthatrelatetothestatutoryrequirements.DiscretionarygrantsandprojectscompriseofthePivotalGrantandprojectfundingdisbursedinaccordancewiththeprioritiesasdefinedintheSectorSkillsPlan.Noguaranteeshavebeengivenorreceived.Noexpensehasbeenrecognisedinthepriorforbadordoubtfuldebtinrespectoftheamountsowedbyrelatedparties.

Related party transactions

Employers transferred to/(from) SETAsCETA - (56)MERSETA 269 (29)W&R SETA (15) -Transactions - Members of the Accounting AuthorityF. Baleni (Chairperson)

(176) (3)

O. Besnaar (259) (131)M.Sekano (265) (80)J. Sera (197) (68)K.Swanepoel (105) (64)K.Msebenzi - (1)T. Montoedi (64) (46)S. Nhlapo - deceased (14) (61)T. Phadu (27) (37)



2017R ‘000

2016R ‘000

Projects transactions - entities with representative serving on EWSETA's Accounting AuthorityNUMSA

(1,584) -

DOE (917) -DWS 557,288 -

TheEWSETAiscontrolledbytheDepartmentofHigherEducationandTraining(DHET)whichisunderthedirectionoftheMinisterofHigherEducationandTraining.ThetransactionsrelatingtorevenuewerewiththeDHET.ThetransactionsandbalancesaroseduetothemovementsoffundsbetweentheentitiesthatareunderthecontroloftheDHET.

29. KEY MANAGEMENT INFORMATION

Executive2017 Salary Otherbenefits Acting

Allowances Total

ChiefExecutiveOfficer 1,714,399 - - 1,714,399ChiefFinancialOfficer(appointedDecember2016) 427,771 6,000 - 433,771ChiefOperatingOfficer(appointedSeptember2016) 703,584 99,000 - 802,584Corporate Services Executive 1,063,078 198,000 - 1,261,078ActingChiefFinanceOfficer - - 111,901 111,901ActingChiefOperatingOfficer - - 100,557 100,557ActingSectoralCollaboration&StakeholderEngagement Executive - - 241,337 241,337

3,908,832 303,000 453,795 4,665,6272016ChiefExecutiveOfficer 1,523,832 285,003 - 1,808,835Corporate Services Executive 1,057,913 183,680 - 1,241,593ActingChiefFinancialOfficer - - 286,179 286,179ActingChiefOperatingOfficer - - 232,363 232,363ActingSectorCollaboration&StakeholderEngagement Executive - - 120,669 120,669

2,581,745 468,683 639,211 3,689,639

Non- Executive - 2017Meeting

feeTravel Costs Total

Accounting AuthorityBoard chairperson 175,608 - 175,608Members 919,065 28,359 947,424

1,094,673 28,359 1,123,032Accounting Authority sub- committeesAuditandriskcommitteeChairperson -116,833 -3,203 -120,036Members 103,532 2,454 105,986

220,365 5,657 226,022

TheEWSETAAccountingAuthorityconsistof12members,therearecurrently3vacantpositionsontheAccountingAuthority.



30. RISK MANAGEMENT

Financial risk management

Theentity’sactivitiesexposeittoavarietyoffinancialrisks:marketrisk(includingcurrencyrisk,fairvalueinterestraterisk,cashflowinterestrateriskandpricerisk),creditriskandliquidityrisk.

TheEWSETAhasdevelopedacomprehensiveriskstrategyinordertomonitorandcontroltheserisks.Theriskmanagementprocessrelatingtoeachoftheserisksisdiscussedundertheheadingsbelow:

Liquidity risk

Theentity’srisktoliquidityisaresultofthefundsavailabletocoverfuturecommitments.Theentitymanagesliquidityriskthroughanongoingreviewoffuturecommitments.

2017Carrying amount

6 months or less 6-12 months 1-2 years

Payablesfromexchangetransactions (18,179) (18,179) - -2016Payablesfromexchangetransactions (16,076) (16,076) - -

Credit riskCreditriskconsistsmainlyofcashdeposits,cashequivalents,financialinstrumentsandtradedebtors.Theentityonlydepositscashwithmajorbankswithhighqualitycreditstandingandlimitsexposuretoanyonecounter-party.

Tradereceivablescompriseawidespreadcustomerbase.Verificationcostsaresettledincash.

2017 Gross Impairment TotalReceivablefromexchangetransactions 6,411 - 6,411Cash and cash equivalents 477,843 - 477,8432016 Receivablesfromexchangetransactions 4,671 4,671Cash and cash equivalents 347,155 347,155



2017R ‘000

2016R ‘000

31. FRUITLESS AND WASTEFUL EXPENDITURE

Openingbalance 292 165Add:fruitlessandwastefulExpenditure-currentyear 33 127

325 292Someofthefruitlessandwastefulexpenditureisstillunderinvestigation.

Details of incidentsInterest on late payments 21 127Missedflights 12 -

33 127

32. IRREGULAR EXPENDITURE

Openingbalance 113,646 100,263Add: Irregular Expenditure - current year 291 39,768Less: Amounts condoned (39,780) (26,385)

74,157 113,646Details of irregular expenditure – current yearExceeding quotation thresholdExcessover10.5%ofadministrationexpensesallocation

291-

39,768

291 39,768Details of expenditure awaiting condonationExceeding quotation thresholdExcessover10.5%ofadministrationexpensesallocation

291-

39,768

291 39,768Details of irregular expenditure condonedExcessover10.5%ofadministrationexpensesallocation(Condonedby:ExecutiveAuthority(DHET) 39,780 26,385

33. LOSSES DUE TO THEFT AND FRAUD

Stolen/lost assets 7 33

CriminalchargeshavebeenlaidwiththeSouthAfricanPoliceService(SAPS)toinvestigatethemattersabove.



34. PRIOR PERIOD ERRORS

Duringtheyearunderreviewitwasdiscoveredthatprojectadministrationcostspaidinpriorperiodsforrefurbishmentofthebuildingwererecordedasprepaymentsandnotcapitalisedtothebuilding’sgrosscarryingamounts,thisresultedintheunderstatement of property, plant and equipment and overstatement of prepayments.

Duringtheyearunderreview,usefullivesofintangibleassetswerereassessedandretrospectiveadjustmentwasmadeforassetsthatwerefullyamortisedbutstillinuse.

Duringtheyearunderreviewitwasdiscoveredthatcertaindiscretionaryandadministrationexpenseswerenotprovidedforinthe2015/2016financialyear.

Thecorrectionoftheerrorsresultsinadjustmentsasfollows:

Statement of financial position

Originallyreported R'000

Prior period correction

R'000

Restated balanceR'000

Receivablesfromnon-exchangetransactions 12,278 (2) 12,276Property, plant and equipment 36,991 3,866 40,857Prepayment 51,406 (3,833) 47,573Intangibleassets 1,494 126 1,620Payablesfromnon-exchangetransactions (53,365) (5,924) (59,289)Payablesfromexchangetransactions (12,999) (404) (13,403)Administration grant reserve (40,389) (3,992) (44,381)Discretionarygrantreserve (305,966) 10,163 (295,803)

(310,550) - (310,550)Statement of financial performanceAdministration expenses (28,540) (458) (28,998)Depreciationandamortisation (1,457) 210 (1,247)Employer grant and project expenses (554,398) (5,923) (560,321)Deficitfortheperiod 7,660 6,171 13,831

(576,735) - (576,735)



35. GOING CONCERN

Theannualfinancialstatementshavebeenpreparedonthebasisofaccountingpoliciesapplicabletoagoingconcern.Thisbasispresumesthatfundswillbeavailabletofinancefutureoperationsandthattherealisationofassetsandsettlementofliabilities,contingentobligationsandcommitmentswilloccurintheordinarycourseofbusiness.TheSETA'slandscapeperiodhasbeenextendedto2020.

ThetotalcommitmentsasattheendofthefinancialyearareR1,394,911,000.AnamountofR1,183,822,600ofthetotalcommitmentsrelatestotheWaronLeaksprojectswhichisfullyfundedbyDWS.

36. BUDGET DIFFERENCES

Material differences between budget and actual amounts

a) Otherincomeincludesincomereceivedfromcertificateverification.b) Theactualinterestincomereceivedwashigherthanthebudgetedduetorevenuereceivedbeingmorethanexpected.c) SpecialprojectincomerelatestotheincomerecognisedastheWaronLeaksprojectisimplemented.d) TheskillsdevelopmentlevyincomeishigherthanbudgetedduetonewemployersjoiningEWSETA,generalemployer

salaryincrementsandpossibleincreaseinlabourworkforce.Interestandpenaltieswerenotincludedinthebudgetasitisanticipatedthatallemployerswouldpayleviesontime.

e) Thehigherpersonnelexpenditureisduetosalaryincreasesandnewappointments,includingmanagersandexecutives.f) ThebudgetedcostsforrepairsandmaintenanceishigherthanactualasmanagementanticipatedthattheSETAwould

movetothenewbuildingin2016/17financialyear.g) TheactualcostofgeneralexpenditureishigherthanbudgetedduetomanagementanticipatingthattheSETAwould

makeasavingonsomeoftheadministrationcostswhenmovingtotheSETAbuilding.h) ThediscretionarygrantexpensesarehigherthanbudgetedduetoimplementationofPhase2oftheWaronLeaks

project.i) Themandatorygrantexpensesarelowerthanbudgetedduetoanumberofemployersnotqualifyingformandatory

grantinthe2016/17financialyear.



37. SEGMENT INFORMATION

Segment surplus or deficit, assets and liabilities

2017 Revenue

Administra-tion

Mandatory Grants

DiscretionaryGrants

Special Projects General Total

SkillsdevelopmentLevyIncome 36,903 70,977 173,843 - - 281,723Government Levy 896 - 1,793 - - 2,689Penalties and Interest - - 2,616 - - 2,616Investment Income - - 23,731 - - 23,731Special Project Income - - - 1,166,471 - 1,166,471Other Income 37 - - - - -37Total segment revenue 37,836 70,977 201,983 1,166,471 - 1,477,267Entity's revenue 1,477,267

Expenditure- Administration Expense 30,063 - - - - 30,063- Employee Costs 33,994 - - - - 33,994-DepreciationandAmortisation 1,461 - - - - 1,461Loss on derecognised assets 37 - - - - 37Employer Grant and Project expense - 22,500 170,572 1,166,472 - 1,359,544Total segment expenditure 65,555 22,500 170,572 1,166,472 - 1,425,099

Total segmental surplus/(deficit) 52,168

AssetsReceivablefromexchangetransactions 6,411 - - - - 6,411Receivablesfromnon-exchangetransactions - 7,120 660,439 - - 667,559Prepayments 37,864 - 11,108 9,724 - 58,696Cash and Cash Equivalent - - - - 477,843 477,843Property Plan & Equipment 45,498 - - - - 45,498Total segment assets 89,773 7,120 671,547 9,724 477,843 1,256,007Total assets as per statement of financial position 1,256,007

LiabilitiesPayablefromexchangetransactions 18,179 - - - - 18,179Payablesfromnon-exchangetransactions - 24,512 53,310 - - 77,822Provisions - 682 44,319 656,322 - 701,323Unspent conditional grants - - - 66,176 - 66,176Total segment liabilities 18,179 25,194 97,629 722,498 - 863,500Total liabilities as per statement of financial position 863,500



2016 Revenue

Administra-tion

Mandatory Grants

DiscretionaryGrants

Special Projects General Total

Skillsdevelopmentlevyincome 31,807 61,099 150,798 - - 243,704Government levies 995 - 1,989 - - 2,984Penalties and interests - - 6,636 - - 6,636Investment income - - 17,025 - - 17,025Special project income - - - 337,243 - 337,243Other income 44 - - - - 44Total segment revenue 32,846 61,099 176,448 337,243 - 607,636Entity's revenue 607,636

ExpenditureAdministration expenses 28,998 - - - - 28,998Employee related costs 30,462 - - - - 30,462Depreciationandamortisation 1,247 - - - - 1,247Loss on derecognised assets 33 - - - - 33Employer grants and project expenses - 55,515 167,563 337,243 - 560,321Finance costs - - 406 - - 406Total segment expenditure 60,740 55,515 167,969 337,243 - 621,467Total segmental surplus/(deficit) (13,831)

AssetsReceivablesfromexchangetransactions 4,671 - - - - 4,671Receivablesfromnon-exchangetransactions - 7,176 5,100 - - 12,276Cash and cash equivalents - - - - 347,155 347,155Prepayments 36,883 - 10,690 - - 47,573Property Plant Equipment 44,381 - - - - 44,381Total segment assets 85,935 7,176 15,790 - 347,155 456,056Total assets as per statement of financial position 456,056

LiabilitiesOperatingleaseliability 87 - - - 87Payablesfromexchangetransactions

16,076 - - -16,076

Payablesfromnon-exchangetransactions

- 29,883 29,406 -59,289

Provisions - 777 20,448 - 21,225Unspent conditional grants - - 19,038 - 19,038Total segment liabilities 16,163 30,660 68,892 - 115,715Total liabilities as per statement of financial position 115,715


132

Notes

133

Notes


EWSETACONTACTDETAILS

011 274 [email protected]

www.ewseta.org.za

EWSETA HEAD OFFICE (GAUTENG)32 PRINCESS OF WALES TERRACE,

MPFHOUSE,SUNNYSIDEOFFICEPARK,JOHANNESBURG 2000

EWSETA FREE STATE PROVINCIAL OFFICEMOTHEO TVET CENTRAL OFFICE,

CORNERSTGEORGESANDALIWALSTREETS,BLOEMFONTEIN 9300

TEL: 051 430 1492

EWSETA WESTERN CAPE PROVINCIAL OFFICE

FALSEBAYCOLLEGE,WESTLAKECAMPUS,WESTLAKEDRIVE,WESTLAKE,

CAPE TOWN 7945TEL: 021 701 0582

EWSETA EASTERN CAPE PROVINCIAL OFFICE

PORTELIZABETHCOLLEGE,RUSSELLCAMPUS139RUSSELLROAD,CENTRALTOWN,

PORTELIZABETH6200TEL: 041 509 6350

EWSETA NORTH WEST PROVINCIAL OFFICEORBIT TVET COLLEGE,

BRITSCAMPUS,REITZSTREETNORTH,BRITS 0250

TEL: 012 381 5700/58

EWSETA NORTH WEST PROVINCIAL OFFICE

TALETSO TVET COLLEGE, LEAHMANGOPEHIGHWAY(BETWEEN LEHURUTSHE

FIRESTATIONANDHOSPITAL)LERATO 2880

TEL: 018 363 4124

Department:Higher Education and TrainingREPUBLIC OF SOUTH AFRICA

higher education & training