2

Presentation Outline

Presentation of the of the 2016/17 Annual

Performance Report

Presentation of the 2016/17 Annual Financial

Statements

Presentation of the Auditor-General’s Report

Presentation of the Draft 2018/19 Annual

Performance Plan

PSETA’s mandate is focused on “transversal skills” for all National and

Provincial departments. PSETA deals with all skills only for

departments whose core business is unique to government (e.g.

immigration services for Home Affairs, Mission Administration for

Foreign Affairs, Statistics for Stats SA);

PSETA is in a unique position as it does not collect skills development

levies, like other SETAs – almost all the funds for skills development is

under the managerial control of the sector;

Some constituent members have dual reporting to other line function

SETAs; and

Sector members report to DPSA on HRD plans and reports, but to

SETAs on skills efforts – this creates some discrepancies on what is

reported, prompting a need for alignment of these processes.3

.

Introduction

4

Our Values

Honesty and Integrity, Accountability, Service Excellence,

Fairness and Transparency

Our Mission

Effective coordination of skills development based on occupationally-directed qualifications; Focusing on learning

programmes; and Promoting learner placement and absorption within the public service sector

Our Vision

Cutting Edge Skills for Quality Public Services

5

Overview of PSETA Operating Environment between 2011 - 2017

2011 – 2013

• Operational Independence from DPSA (Schedule 3A)

• Building Internal HR capacity and systems

• Governance Structures established

2013 – 2015

-NSF grant received

-Funding model developed

-Quality of SSP

-SIU investigation undertaken

-Turnover of CFOs experienced

-IA & RM functions

established

2015-2017

• NT Budget Allocation

• Strategic partnerships

• Executives turnover

• Finance & SCM capacity strengthened

• Unqualified audit opinion

Strategic Goals and Objectives

Strategic Goal Strategic objectives

1.PSETA capabilities to

lead the Public Service

Sector are improved.

1.1.Provision of governance, risk and compliance assurance to ensure a

highly effective and efficient entity

1.2.Prudent management and allocation of resources.

1.3.Strategic Human Resources is planned, and implemented to support the

organizational performance.

1.4.Strategic and marketing and communication interventions to support

organization strategies.

1.5.ICT governance and processes implemented to support the organizational

strategies.

2.Sector capabilities to

lead capacity-building

interventions through

partnerships are

improved

2.1.To support and respond to sector skills needs by conducting sector

research

2.2.Improve stakeholder capacity for skills planning in the sector

3.The stock of skills

available to and within

the Public Service Sector

is improved

3.1.A system to quality assure training provision is developed and

implemented for the purpose of delivering a user friendly system for improved

quality assurance training

4.The flow of skills into

the Public Service Sector

is improved.

4.1.Programmes to address scarce and critical skills needs identified in the

SSP are implemented and reported (both employed and unemployed).

4.2.Programmes implemented by the sector to open the public service as a

training space are supported and reported (both employed and unemployed)

Overview of performance against targets for the 2016/17

Recorded 51% achievement against its set targets. Of this 51% only 25%

represents core business of the organisation. This was largely due to a number

of reasons to be explained later in the presentation.

Funding for skills development interventions improved, however, the ability to

spend remains a challenge given the bureaucracy that exists within the sector,

wherein the response time in relation to the signing of MOA to enable us timely

disburse grants.

Detailed achievements per programme is outlined in the next few slides.

Hosted in collaboration with European Union Dialogue Facility Programme, a

dialogue for South African public entities and their European counterparts in

areas of HRD – Outcome of this is that 20 SIU officials will be trained on a

Cyber Forensics 1st Responder learning programme, scarce skills that is not

offered in South Africa. 7

Overview of performance against targets for the 2016/17

Conducted research into the legislative sector - assessed the skills needs of

administrative and support staff in Parliament and the nine provincial legislatures.

Process underway to conclude a MoU with Parliament on behalf of the sector.

PSETA hosted officials from the Botswana Directorate on Corruption Crime, facilitated

by the South African Special Investigating Unit, to share practices with regard to the

South African approach to skills development, the legislative work that governs

training in South Africa, curriculum development and accreditation processes.

Supported the Department of Home Affairs Cadet Programme training unemployed

learners who were eventually absorbed into permanent upon completion.

PSETA launched a woman empowerment project and is currently funding eight

female managers from the Eastern Cape Department of Sport, Recreation, Arts and

Culture to address competency gaps in strategic positions.

A total of 108 females and 106 males are currently undergoing training in various

trades in the Provinces of KwaZulu-Natal; Eastern Cape; Western Cape;

Mpumalanga; and Gauteng City 8

Achievement per Strategic GoalSG 1: PSETA capabilities to lead the Public Service

sector are improved

Improved risk management maturity rating 4

100% of Internal audit operational plan implemented

90% rating on external assessment of AA completed

100% reduction on recurring audit findings

Unqualified audit report for 2016/17 achieved

51% of the of the Demand Management Plan and Procurement Plan

implemented

9

Achievement per Strategic GoalSG 2: Sector capabilities to lead capacity building

interventions through partnerships are improved

A credible Sector Skills Plan, sector understanding and buy-in.

Improvements in Workplace Skills Planning.

Concluded five MoUs with provincial oversight bodies.

DHET has tasked PSETA to facilitate the 2 000 Chinese learning opportunities

from 2015 to 2020.

Commissioned a research study into what skills are required to implement

green supply chain management effectively in the public sector –

implementation carried out Rhodes University. 10

Number of PSETA learning programmes assessed for impact

The PSETA ETQA Department continued to build provider capacity and a

total of 74 accredited providers were monitored, and also reduced the

turn around time from 45 to 18.49 working days with regard to

accreditation.

Impact assessment of five of PSETA qualifications were completed.

The PSETA ETQA has maintained it green status for the SAQA NLRD.

Number of career guidance advocacy initiatives 28

11

Achievement per Strategic GoalSG3: The flow of skills into the Public Service sector

is improved

Achievement per Strategic Goal SG 4: The stock of skills available to and within the

Public Service sector is improved

PSETA-FUNDED PROGRAMMES

EMPLOYED LEARNERS: Enrolment

Learning Programme: 66 out of 55

Skills Programme: 533 out of 2 500

EMPLOYED LEARNERS : Completions

Learnerships: 35 out of 100

Skills Programmes: 467 out of 700

UNEMPLOYED LEARNERS: Enrolment

Learner ships: 30 out of 50

TVET WIL: 291 out of 200

Artisans: 23 out of 15

UNEMPLOYED LEARNERS : Completions

Learner-ships: 35 against 100

Learnerships 38 of 25

Artisans: 14 of 20

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Learning Programs…

13

Scarce and Critical Skills

as per SSP for – 2016/17

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• General Manager Public Service, Senior Government Official, Senior Government Manager, Director (Enterprise / Organisation), Policy and Planning Manager, Programme or Project Manager, Quality systems manager, Office Manager, Archives Manager, Operations Manager (Non Manufacturing), Business Administrator, Database Designer and Administrator, Systems Administrator, Archivist

Management and Administration

• Construction Project Manager, Project Builder, Environmental Manager, Civil engineers, Quantity surveyors, Land and engineering surveyors, Property Manager, Property Lease Administrator, Property Portfolio and Asset Manager, Computer network technicians

Professional and Technical skills

• Personnel / Human Resource Manager, Business Training Manager, Recruitment Manager, Labour Recruitment Manager, Skills Development Facilitator / Practitioner, Training and Development Professional, Occupational Instructor / Trainer, Recruitment Consultant / Officer

HRM and HRD

• Finance Manager, Physical Asset Manager, Contract Manager, Supply and Distribution Manager, Warehouse Manager, Cost and management accountants, Procurement officers, Supply Chain Practitioner, Physical Asset Practitioner

SCM and Contract Management

Delays in the signing of MOAs by stakeholders resulting in non-

allocation of funds and no enrolment of learners.

Delays in the payment of invoices for due to incomplete supporting

documents submitted by stakeholders and strategic partners.

Meeting of all targets in the APP due to dependency and/or

inadequate cooperation from the stakeholders.

Lack of adequate model for the funding of PSETA.

Uncertainty over SETA landscape resulting high labour turnover.

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Key Challenges

Total Revenue in 2016/17 was R 73 million and

R116 million 2015/16

Retention Surplus= R 57.5 million ; Significant

surplus due to 2015/16 Irregular Discretionary Grant

Process resulting in no new

contracts awarded during 2016/17

Revenue and retention surplus 2016/17

17

18

Revenue Streams/ Sources

Levies11%

Vote: DHET77%

NSF Realised Income10%

CIP Projects Realised Income

1%

Interest1%

Other Income0%

Levies Vote: DHET NSF Realised Income CIP Projects Realised Income Interest Other Income

Revenue (R)

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7 687

55 727

7 397

535 1 142 16

LEVIES VOTE: DHET NSF REALISED INCOME CIP PROJECTS REALISED INCOME

INTEREST OTHER INCOME

R’ Million

Five Year Revenue Comparison

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R 39 953

R 54 628

R 88 399

R 115 747

R 72 504

R 0

R 20 000

R 40 000

R 60 000

R 80 000

R 100 000

R 120 000

R 140 000

2012/13 2013/14 2014/15 2015/16 2016/17

Five Year Revenue Trend R’ Million

Five Year Expenditure Trends

21

R 42 564 R 43 391 R 45 615

R 66 555

R 95 674

R 0

R 20 000

R 40 000

R 60 000

R 80 000

R 100 000

R 120 000

2012/13 2013/14 2014/15 2015/16 2016/17

Five Year Expenditure Trends R’ Million

Net Surplus/Deficit comparatives

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Revenue

Expenditure

Surplus/(Deficit)

R115 747

R66 555

R49 192

R72 504

R95 674

R(23 170)

2016/17 2015/16

Discretionary Reserves

23

Administration reserves2%

Discretionary reserves - Committed29%

Discretionary reserves -Uncommitted

69%

Total Assets R107 million

24

R173 R1 561

R103 067

R8 R1 585 R863

Intangible assets PPE Cash & CashEquivalents

Consumables Donor FundingReceivable - NSF

Trade receivables

Total Liabilities R 24 million

25

R 6 266

R 75 R 190 R 5

R 17 513

Trade & OtherPayables

Operating leaseliability

Grants and otherpayable

NSF and CIP Deferredincome liability

Provisions

Current Assets vs. Liabilities

26

R 107 257

R 24 049

R 83 208

Total Assets Total Liabil i t ies Net Assets

R’ Million

Dashboard of Internal Controls

27

Legends

PSETA obtained an unqualified audit opinion ;

Emphasis of matters;

- Restatement of corresponding figures

- Irregular expenditure

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Auditor General’s Opinion

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Auditor General’s Opinion on the AFS

KEY FINDINGS FROM THE AGSA

MATTERS RAISED DETAILS

Predetermined

Objectives

No material findings reported in the audit report as all programmes in

the management report were unqualified.

Compliance with

Legislation

Annual Financial Statements

Section 55(1)a of the PFMA: Due to material adjustments identified

through the audit process.

Expenditure management

Section 51 (1)b(ii) of the PFMA: Effective steps not taken to prevent

irregular and fruitless and wasteful expenditure.

Internal Controls

Proper record keeping

System does not allow for easy retrieval of documents.

Daily and monthly processing and regular, accurate and

complete reports

Non-compliance with GRAP requirements resulting in numerous

misstatements.

Compliance monitoring

Non-compliance with Section 55(1)and 51 (1)b(ii).

Questions???

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Background

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PSETA was re-established as a Schedule 3A public entity in 2016 and re-

licensed until 31 March 2020;

Led by 15 Member Accounting Authority whose term of ends on 31 March

2018;

Continues to play the significant role in ensuring that appropriate skills are

provided to public sector employees to enable them to delivered good quality

services;

It is largely funded from the fiscus through allocation under Vote 15 of the

DHET and small portion of levies;

Legislative and Policy frameworks

33

Various policy and legal frameworks that govern PSETA , are amongst others

listed below:

Constitution of the Republic of South Africa, 1996 as amended;

Skills Development Act, 1998 as amended;

Skills Development Levies Act, 1999;

Public Finance Management Act, 1999 as amended;

White paper on post-school education and training;

National Skills Development Strategy III;

National Development Plan, 2030;

MTSF 2014-2019; and

Implications of HRDC skills review of the current skills development.

34

Linking the Sector Skills Plan to the

Strategic Plan

Building State Capabilities Through

Innovative Strategic Partnerships

Sector Skills Plan

• Identify key skills priorities and actions

Strategic Plan

• Translate into strategic goals and objectives

APP

Total number of PSETA “constituent employees” is 533 678.

– PSETA resources are reaching 0.4% of these, and the sector’s resources

are reaching less than 10%. We need to reduce costs and increase

numbers. We also need to mobilise sector behind our strategy for doing

so.

Public Service employment shrank by 0.5% from 2012 – 2015

– Existing public servants need to be upskilled/reskilled for higher levels of

performance. This points to our critical skills being focused on improving

service delivery.

Vacancy rate up from 11.4% in 2015 to 11.58% in 2016

– Vacancies in professional, technical, scientific and IT occupations should

be the priority scarce skills.

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Summary of Key Employment Trends Reported in SSP 2017/18 and implications for the Sector

Turnover rate is 9% for public service sector

– Roughly 50 000 new entrants each year need to be better equipped with

the skills needed by the public service; and bridged into work

opportunities through the internships strategy

26% of public sector employees have not completed schooling; 46% have

no higher education at all. Only 6% of public sector employees have any

post-graduate qualification.

– PSETA interventions at post-graduate level have a limited market until

this demographic changes. RPL strategy also key.

– PSETA resources cannot deliver all the above.

Therefore it is key that we educate, mobilise and organise the sector

behind us. Also that we find ways of improving economies of scale/efficiencies

– e.g. using technology to expand access to learning.

36

Summary of Key Employment Trends Reported in SSP and implications for the Sector

Turnover rate is 9% for public service sector

– Roughly 50 000 new entrants each year need to be better equipped with

the skills needed by the public service; and bridged into work

opportunities through the internships strategy

26% of public sector employees have not completed schooling; 46% have

no higher education at all. Only 6% of public sector employees have a post-

graduate qualification.

– PSETA interventions at post-graduate level have a limited market until

this demographic changes. RPL strategy should play a key role.

PSETA resources cannot deliver all the above.

- Therefore it is key that we educate, mobilise and organise the sector

behind us. Also that we find ways of improving economies of

scale/efficiencies – e.g. using technology to expand access to learning

Summary of Key Employment Trends Reported in SSP and implications for the Sector

Current Strategic Partnerships

38

Strategic partnerships are focused on building state capabilities identified as

priorities in NDP Chapter 13

DPME/NSG – improving planning, monitoring and evaluation capabilities

National Treasury/NSG – improving financial management

DPSA/NSG – improving operational efficiency and effectiveness/ people

management

Public Entities/European Union – Establishing international networks to build highly

specialised areas of need

Higher Education Round Table to close supply-demand “mismatches

OTP Gauteng – Improving Frontline Service Delivery

DHET/OTPs/National Treasury – supporting the SIPS through IDMS and NIMS, roll

out of Infrastructure Procurement Standards

DHA – Cadet Program to share best practices on bridging people into work

Strategic Outcomes

Oriented Goals

Goal Statements

1.PSETA capabilities to

lead the Public Service

Sector are improved.

PSETA develops the organisational capabilities to

lead the Public Service Sector economically,

efficiently, effectively and equitably.

2.Sector capabilities to

lead capacity-building

interventions through

partnerships are

improved.

Stakeholders locate skills development initiatives

within wider capacity-building interventions through

partnerships –”aimed at coordinating efforts and

focusing resources on the right things”

3.The stock of skills

available to and within the

Public Service Sector is

improved.

Existing and future public service sector employees

are equipped to fulfil their responsibilities in

delivering on their mandates. “demand-side” and

“”bridging into work”

4.The flow of skills into

the Public Service Sector

is improved.

Providers who deliver training to current or future

public service sector employees efficiently deliver

programs that are fit for purpose – “supply-side”

Strategic Goals of the PSETA

Performance Matrix

Strategic Goal Strategic objective Annual Target for 2018/19

1.PSETA

capabilities to lead

the Public Service

Sector are

improved.

1.1.Provision of governance, risk and

compliance assurance to ensure a

highly effective and efficient entity

Maintain a rating of 4

1.2. Prudent management and

allocation of resources.

Clean audit

1.3. Strategic Human Resources is

planned, and implemented to support

the organizational performance.

100% implementation of

approved training plan as

per submitted WSP

1.4.. Strategic and marketing and

communication interventions to

support organization strategies.

30 Career guidance

advocacy sessions

1.5. ICT governance and processes

implemented to support the

organizational strategies.

100% Percentage

implementation of approved

ICT Plan

Performance Matrix

Strategic Goal Strategic objective Annual Target for 2018/19

2.Sector

capabilities to lead

capacity-building

interventions

through

partnerships are

improved.

2.1.To support and respond to

sector skills needs by conducting

sector research

11 Skills planning related research

studies conducted

2.2. Improve stakeholder capacity

for skills planning in the sector

Number of organisations’

Workplace Skills Plans approved

by PSETA

Total =136;

Small=6;

Medium=10;

Large= 120

34 Stakeholder skills planning

capacity building sessions

conducted

Performance Matrix

Strategic Goal Strategic objective Annual Target for 2018/19

3. The stock of

skills available

to and within

the Public

Service Sector

is improved.

3.1 Programmes to address scarce

and critical skills needs identified in

the SSP are implemented and

reported (both employed and

unemployed).

Public service employees entries

Learnership: 250

SP: 1000

Bursaries 60

Public service employees completions

Learnership: 45

SP: 900

Bursaries: 50

Unemployed learners entries

Learnership: 200

TVET WIL:300

Bursaries: 150

Artisans:40

Unemployed learners completions

Learnership: 50

SP: 50

3.2. Programmes implemented by

the sector to open the public

service as a training space are

supported and reported (both

employed and unemployed)

30 capacity building sessions conducted to

support implementation of learning

programmes by the sector

Performance Matrix

Strategic Goal Strategic objective Annual Target for 2018/19

4. The flow of skills

into the Public

Service Sector is

improved

4.1 A system to quality assure

training provision is developed

and implemented for the

purpose of delivering a user

friendly system for improved

quality assurance training

40 Skills development providers

accredited on PSETA learning

programmes

73 Accredited providers

monitored

2 Qualifications developed and /

or re-aligned and submitted to

QCTO.

Programme Structure

Name of Programme Alignment to Strategic Goals

1. Administration 1.PSETA capabilities to lead the Public

Service Sector are improved.

2. Skills Planning 2.Sector capabilities to lead capacity-

building interventions through partnerships

are improved.

3.Learning Programmes 3.The stock of skills available to and within

the Public Service Sector is improved.

4. Education, Training and

Quality Assurance

4.The flow of skills into the Public Service

Sector is improved.

*Programme 4 (ETQA) appeared as Programme 3 during the 2016/17 and 2017/18 financial year, but has been moved (to Programme 4

from 01 April 2018) to align with DHET’s Standardised Programme Structure

Non-achievement of APP Targets.

Failure to spend the allocated Discretionary Grants budget.

Uncertainty of the Seta landscape.

Inadequate model for the funding of PSETA.

Invoices not paid within 30 days.

Fraud and Corruption.

Phasing out of historically registered qualifications.45

Strategic Risks

Total Budget R 119 153 888 million

BUDGET FOR 2018/19 FY

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Detailed Breakdown of the Budget

TOTAL REVENUE

2017/18

Budget Medium-Term Expenditure

2017/18 2018/19 2019/20 2020/2021

Revenue Estimates

Admin 623 650 642 360 680 902 721 756

Mandatory 1 270 971 1 309 100 1 387 646 1 470 905

Discretionary 2 895 961 2 982 840 3 161 810 3 351 519

Levies: Other Entities 2 888 757 2 975 420 3 153 945 3 343 182

Transfers from DHET 103 760 000 109 778 000 116 364 680 123 346 561

Other Income 85 000 90 500 95 930 101 686

Surplus Fund Retention 57 548 214 - - -

Interest 648 900 1 375 668 1 458 208 1 545 701

Total Revenue 169 721 453 119 153 888 126 303 121 133 881 309

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