annual report moving forward - theme for this years annual report successful standisation played a...
DESCRIPTION
2012/2013 Achievements Human Resources Key Senior Management appointments made resulting in the ability to establish the Management Committee (team that reports directly to the CEO) Issues surrounding the 12 staff seconded to the QCTO resolved Governance Qualifications, Assessment and Accreditation and Audit & Risk Committees fully operational, thus all committees of Council established QCTO Presentation to the Portfolio Committee 10 OctTRANSCRIPT
Annual Report
Moving Forward - Theme for this year’s annual report
• Successful STANDISATION played a significant role in improving the results of the core business
• And still the organisation remains committed to being a body that looks after the public’s interest
QCTO presentation to Portfolio Committee10 Oct 2013
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Organisation’s Mandate
National Qualifications Framework Act, in essence stipulates the development and management of the Occupational Qualifications Sub-framework
Skills Development Act, in essence stipulates:• Design and develop occupational standards and qualifications• Establish and maintain occupational standards and qualifications• Ensure the quality of occupational standards and qualifications• Promote the objectives of the National Qualifications Framework
NB:SDA provided for the establishment of QCTO which became operational 1 April 2010, w/ permanent CEO employed 1 April 2012
QCTO presentation to Portfolio Committee10 Oct 2013
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2012/2013 Achievements
Human Resources•Key Senior Management appointments made resulting in the ability to establish the Management Committee (team that reports directly to the CEO)•Issues surrounding the 12 staff seconded to the QCTO resolved
Governance•Qualifications, Assessment and Accreditation and Audit & Risk Committees fully operational, thus all committees of Council established
QCTO Presentation to the Portfolio Committee 10 Oct 2013
3
2012/2013 Achievements
Core Operations•Standardisation of processes vastly improving operations•Standardised processes documented and communicated to relevant partners•Provider accreditation system in place
•Finance•Unqualified Audit
QCTO presentation to Portfolio Committee 10 October 2013
4
Predetermined Objectives
For programme 1 (administration) key objectives were to establish the QCTO as an independent organisation
The organisation in this formative state achieved as follows:•Met all compliance due dates•Financial policy development•Drafted SCM, HR management and ICT plan to act independently of the DHET
QCTO presentation to Portfolio Committee 10 October 2013
5
Predetermined Objectives
Achievements for Programme 2 (qualifications management) included:•Meeting the target for policy development•Exceeding the target for completion of guidelines for implementing policies•Exceeding the number of applications in the development process•Exceeding the target set for the number of historically registered qualifications managed
QCTO presentation to Portfolio Committee 10 October 2013
6
Predetermined Objectives
Important areas of under achievement for programme 2 included:
•Number of qualifications developed and recommended to SAQA Target 60 Actual 1•Number of AQP assessment systems evaluated to be valid and reliable Target 15 Actual 10•Verification and Certification system developed—Not achieved•Number of Foundational Learning Competency learners assessed-- Target 20 000 Actual 366
QCTO presentation to Portfolio Committee 10 October 2013
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2012/2013 Annual Report
Challenges•Insufficient Office Space•Full Reliance on the DHET Policies•Majority of Staff Completely New to the Operations•Stakeholders Unaware of the QCTO Role and its work•Concerned About Funding
QCTO presentation to Portfolio Committee 10 October 2013
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2012/2013 Annual Report
FINANCIAL RESULTSStatement of Financial Performance
QCTO presentation to Portfolio Committee 10 October 2013
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2012/13R’000
2011/12R’000
REVENUEState Contributions 20,352 18,387
Finance Income 837 123
TOTAL REVENUE 21,189 18,510Compensation (9,184) (5,279)
Other Expenses (6,651) (5,445)
NET SURPLUS FOR THE YEAR 5,354 7,786
2012/2013 Annual Report
FINANCIAL RESULTSBudget Against Actuals
QCTO presentation to Portfolio Committee 10 October 2013
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BudgetR’000
ActualsR’000
(Under)/Over
CLASSIFICATIONEmployee Costs 13,749 9,184 (4,565)
Goods and Services 13,060 6,651 (6,409)
Capital Expenditure 1,400 756 (644)
TOTAL 28,209 16,591 (11, 618)
2012/2013 Annual Report
AUDIT OUTCOMES •2 Years of Unqualified Audit Opinion (since inception)•Findings:
Achievement of planned Targets Adjustments to the Annual Performance Information Adjustments to the Annual Financial Statements Irregular Expenditure Standard Policies and Procedures on Performance Information Lack of an accrual accounting systems
QCTO presentation to Portfolio Committee 10 October 2013
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2012/2013 Annual Report
AUDIT OUTCOMES
QCTO presentation to Portfolio Committee 10 October 2013
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# FINDING ROOT CAUSES REMEDIAL ACTIONS
1. 53% Targets not Achieved
Capacity Constraints Positions in the approved structure are being filled
2. Material adjustments in the Annual Performance Report
Inadequate Quality Assurance processes
Due Diligence on reported information enhanced
3. Material Adjustments in the Annual Financial Statements
Dependence/Reliance on the Department’s systems
Corrected. At the time of the audit processes were already at an advanced stage for QCTO to wean from financial DHET systems
2012/2013 Annual Report
AUDIT OUTCOMES
QCTO presentation to Portfolio Committee 10 October 2013
13
# FINDING ROOT CAUSES REMEDIAL ACTIONS
4. Irregular Expenditure
Due to capacity constraints QCTO utilised DHET contract as per provision of TR
Corrected. QCTO has own SCM policy and personnel.
6. Standard Operating Policies
Capacity Constraints Policy and Procedures on Performance Information being developed
7. Lack of Accrual Accounting System
Capacity Constraints Accrual accounting systems is being developed. To be operational as from 1 November 2013