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Ekurhuleni West TVET College Annual Report 2016

Ekurhuleni West TVET College

2016 Annual Report


TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS -------------------------------------------------------------------------------------- 7

PART A: GENERAL OVERVIEW -------------------------------------------------------------------------------------------- 9

1. MESSAGE FROM THE COUNCIL CHAIRPERSON ----------------------------------------------------------- 19

2. OVERVIEW BY THE ACCOUNTING OFFICER ----------------------------------------------------------------- 21

3. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY ------------------------- 23

4. STRATEGIC OVERVIEW --------------------------------------------------------------------------------------------- 24

4.1 VISION, MISSION AND VALUE STATEMENTS --------------------------------------------------------------------- 24

4.2 STRATEGIC OBJECTIVES ------------------------------------------------------------------------------------------- 25

5. LEGISLATIVE AND OTHER MANDATES ------------------------------------------------------------------------ 28

5.1 LEGISLATIVE FRAMEWORK ----------------------------------------------------------------------------------------- 29

5.2 ANNUAL CYCLE OF REPORTING ----------------------------------------------------------------------------------- 29

6. HIGH-LEVEL ORGANISATIONAL STRUCTURE -------------------------------------------------------------- 31

PART B: PERFORMANCE INFORMATION ---------------------------------------------------------------------------- 33

1. COLLEGE PERFORMANCE AND ORGANISATIONAL ENVIRONMENT ------------------------------- 33

2. PERFORMANCE REPORTING -------------------------------------------------------------------------------------- 35

2.1 SIGNIFICANT ACHIEVEMENTS DURING THE 2016 ACADEMIC YEAR ------------------------------------------ 35

2.2 ANNUAL PERFORMANCE ACHIEVEMENTS ----------------------------------------------------------------------- 43

2.3 COLLEGE ACHIEVEMENT IN TERMS OF EXPECTED OUTCOMES ---------------------------------------------- 46

PART C: GOVERNANCE --------------------------------------------------------------------------------------------------- 47

1. CONSTITUTION OF THE COLLEGE COUNCIL AND GOVERNANCE STRUCTURES ------------- 48

2. COLLEGE PERFORMANCE IN TERMS OF STRATEGIC OBJECTIVES………………………… 50

3. RISK MANAGEMENT -------------------------------------------------------------------------------------------------- 54

4. REPORTS BY COMMITTEES OF COUNCIL -------------------------------------------------------------------- 64

5. ACADEMIC BOARD REPORT --------------------------------------------------------------------------------------- 77

6. STUDENT REPRESENTATIVE COUNCIL REPORT ---------------------------------------------------------- 88

PART D: FINANCIAL INFORMATION -------------------------------------------------------------------------------- 89

1. COUNCIL RESPONSIBILITY AND APPROVAL ---------------------------------------------------------------- 90

2. REPORT OF THE ACCOUNTING OFFICER--------------------------------------------------------------------- 91

3. REPORT OF THE AUDIT AND RISK COMMITTEE ----------------------------------------------------------- 113

4. AUDITED ANNUAL FINANCIAL STATEMENTS -------------------------------------------------------------- 115

4.1 REPORT OF THE AUDITOR-GENERAL OR EXTERNAL AUDITORS -------------------------------------------- 115

4.2 STATEMENT OF FINANCIAL POSITION --------------------------------------------------------------------------- 118


4.3 STATEMENT OF FINANCIAL PERFORMANCE -------------------------------------------------------------------- 119

4.4 STATEMENT OF CHANGES IN NET ASSETS --------------------------------------------------------------------- 120

4.5 CASH FLOW STATEMENT ------------------------------------------------------------------------------------------ 121

4.6 ACCOUNTING POLICIES -------------------------------------------------------------------------------------------- 122

4.7 NOTES TO THE ANNUAL FINANCIAL STATEMENTS ------------------------------------------------------------- 142


Alberton Campus

Boksburg Campus


Germiston Campus

Kathorus Campus


Kempton Campus

Tembisa Campus


ABBREVIATIONS AND ACRONYMS

APP Annual Performance Plan

COS Centre of Specialisation

DHET Department of Higher Education and Training

HRDS-SA Human Resource Development Strategy for South Africa

M&E Monitoring and Evaluation

MTEF Medium Term Expenditure Framework

MTSF Medium Term Strategic Framework

NDP National Development Plan

NEET Not in employment nor in education and training (youth)

NSDS National Skills Development Strategy

NSF National Skills Fund

OPS Plan Operational Plan

PQM Programme Qualification Mix

PSET Post-School Education and Training

SETA Sector Education and Training Authority

SNE Special Needs Education

SSP Sector Skills Plan

SWOT Strengths, weaknesses, opportunities, threats

TVET Technical and Vocational Education and Training

WIL Work Integrated Learning

WPBL Workplace-based Learning

CET Act Continuing Education and Training Act

E&A Examination and Assessment

NSFAS National Student Financial Aid Scheme

SETA Sector Education and Training Authority

MOA Memorandum of agreement

MOU Memorandum of understanding

NC(V) National Certificate (Vocational) qualification at NQF levels 2-4.

SO Strategic objective

MIS Management Information System

NSFAS National Student Financial Aid Scheme

HE Higher education

NATED National Technical Education curriculum, which includes the Report

191 programmes (N1-N6).

SP Strategic plan

SSS Student support services at TVET colleges

T&L Teaching and learning with all its supporting activities at colleges.

TVETMIS TVET Management Information System - national unit record data


system

Baseline The status quo, usually statistically stated, that provides a point of

comparison for future performance.

Data Facts or figures - information consists of data presented in a context so

that it can be applied or used.

Data Source Records or source for the information to be sourced in order to be

reported.

Elements Categories of data or information

Evaluation

Time-bound and periodic exercise that seeks to provide credible and

useful information to answer specific questions in order to guide

decision making by policy makers, managers. Evaluation may assess

relevance, efficiency, effectiveness, impact and sustainability.

Evidence for

Verification

Evidence against which the reported information can be verified and

validated.

Indicator

Quantitative or qualitative variable that is used to assess the

achievement of results in relation to the stated goals/objectives. The

objectives of indicators are to measure progress and achievements;

clarify consistency between activities, outputs, outcomes and goals;

ensure legitimacy and accountability to all stakeholders by

demonstrating progress; and assess project / programme and staff

performance.

Method of

Calculation Explanation of how the figures or numbers for reporting are calculated.

Monitoring

Involves collecting, analysing and reporting data on inputs, activities,

outputs, outcomes, impacts and external factors to support effective

management and achievement of aims. Monitoring provides

managers, decision makers and other stakeholders with regular

feedback on progress attained, implementation and results as well as

early indicators of problem detection and correction.

Monitoring and

Evaluation System

Organisational structure with management processes, standards,

strategies, plans, indicators, information system, reporting lines,

timelines and accountability specifications.


PART A: GENERAL OVERVIEW


1.1. Key strengths:

1.1.1. EWC as a Technical and Vocational Education Learning Hub

As a business, EWC has a student clientele of 7660 headcount of NCV students and 12 730 Report 191 enrolled students. Teaching and training which delivery of the core business occur in all six (6) campuses that spread across the Western part of the City of Ekurhuleni, with the OR Tambo International Airport being the focus point. The campuses collectively covers an geographical area of about ± 2000 km

2 with a

population of ± 2.8 million, that constitutes ± 5.6% of the national population and makes up 28% of the Gauteng population.

According to the STATSA approximately three quarters of the people in EMM fall within the potentially economically active age group (between 15 and 64 years), making the local communities our major catchment areas for students. The College has developed as a brand of choice attracting students from the rural communities in Provinces like Limpopo and Eastern Cape who constitute a significant proportion (about 20%) of our registered student population.

A key component to our core business is our partnerships with industries to ensure responsiveness. As a College, EWC has signed cooperative agreements with a number of local industries and businesses who are offering the College a range of services from work-place based placement for both lecturers and students to donation of equipment and professional services. Some of the businesses and industries include South African Airways Technical; Barloworld Equipment (Pty) Ltd; Transnet Engineering; HellermannTyton Group; LG Electronics SA; Transnet Engineering; Ford Motor Company of Southern Africa; Emperors Palace. In addition, the College has an international foot print through partnerships with other TVET colleges and industries overseas. The international relationships expose staff and students to international trends through training; exchange programmes; conferences etc.

1.1.2 EWC as an Employer

EWC accomplishes its success by drawing wealth of expertise from the collective, dynamic and experienced lecturing and administrative staff. See college personnel analysis below:

CS EDUCATORS

PS EDUCATORS

POST

LEVEL

AM

PL1 145

PL2 15

PL3 7

PL4-5 1

Total 168 134 0 3 5 2 25 52

3 0 4 4 8

20

4 0 0 0 0

198 191 389

7 0 0 0 0 2 4 9 11

317

12 0 0 2 0 6 9 23 21 44

111 0 3 3 2 14 39 162 155

MALE FEMALE MALE TOTOAL TOTAL

AF IM IF CM CF WM WF Male Female

SAL LEVEL TOTAL

SL1 -3 42

SL 4-6 80

SL 7-8 26

SL 9-10 6

SL 11-12 1

13+ 1

Total 156

FemaleMaleWF

52284

31110

240

2150

010

100

0 4 4 49 107

0 0

45 103 0 0 0

0 0

1 0 0 0 0

0 0

0 1 0 0 0

0 0

4 2 0 0 0

0 4

5 21 0 0 0

AM AF IM IF CM

0 0

24 48 0 0 0

CF WM

11 31 0 0 0

MALE FEMALE MALE TOTAL


1.1.3 Programmes Offered: NC (V) Engineering Studies

Civil Engineering and Building Construction

Electrical Infrastructure Construction

Engineering and Related Design

Information Technology and Computer Science

Mechatronics NC (V) Business Studies

Finance, Economics and Accounting

Management

Marketing

Office Administration

Transport and Logistics NC (V) Utility Studies

Hospitality

Education and Development

Tourism Report 191 Engineering Studies

Mechanical Engineering

Electrical Engineering

Electronics Engineering

Avionics

Aircraft Maintenance/ Aircraft Metalwork Report 191 Business Studies

Financial Management

Business Management

Marketing Management

Human Resource Management

Management Assistant Occupational Programmes

International Computer Driving License (ICDL)

Computer Literacy (E-learner)

Hospitality

Hair Care

Beauty Therapy

Artisan Development (Automotive, Electrician and Fitting and Turning)

Dual System Pilot Project (Electrician)

Learnership ( Wholesale and Retail and Business Management (NARYSEC))

1.1.4. Economics and Social Patterns

Ekurhuleni Metropolitan Municipality (EMM) is the fourth-largest metropolitan municipality in the country. The municipality was given a Tsonga name, “Ekurhuleni” by the people in the region meaning a „place of peace‟. The metro contributes 25% to the Gauteng‟s province‟s economy and 6% to the national


economy. EMM has a traditional history of being the commercial and manufacturing hub of South Africa and the region. The South African Local Government Association (SALGA) refers to the municipality as the „Africa‟s Workshop‟ (SALGA, 2012) as it has the largest concentration of industrial activity in South Africa and Sub-Saharan Africa (Gauteng Government, 2014). The city is also the transportation hub of Southern Africa due to its wide and modern network of roads, airports, rail lines, telephones, electricity grids and telecommunications. More specifically, the city is home to OR Tambo International Airport (sub-Saharan Africa‟s busiest airport); South Africa's largest railway hub, and a number of country's most significant highways for passengers and freight traffic. EMM‟s economy is driven primarily by five economic sectors: finance and business services (21.9%); manufacturing (21.2%); community services (19.7%); trade (15.4%); and transport (10.9%). These five economic sectors collectively account for 89% of economic activity within EMM and account for most of the formal and informal employment (Ibid). It is however important to note that the municipality‟s dynamic economy is not able to absorb the potential workforce. Indeed, unemployment in the city currently stands at 28.8% (higher than the 25.4% national rate). EMM attributes this high unemployment rate to internal migration and the recent decline of the manufacturing sectors‟ contribution to the economy. High unemployment levels result in poverty (in 2013, the city had the highest number of Africans living in poverty (39,9%) among Gauteng Province‟s three metros6 ) and increases in dependence ratio with 38% of households currently receiving a social grant or listed on the municipal indigent register (IDP2015/16).

To address high levels of unemployment and poverty rates, EMM has introduced a number of economic development initiatives. These include creating an Aerotropolis, revitalizing the manufacturing sector and township economies (including SMMEs and informal trading) through the Township Enterprise Development Programme. The Local Economic Development (LED) has a strategic role in fostering economic growth, encouraging economic empowerment and bringing about economic transformation. The unfolding of the national growth and development strategy as well as the provincial iteration of the growth and development strategy is about LED being realized and aligned at a local level. Based on the Spatial Development Framework, EMM identified a set of catalytic projects1 to bring about economic stimulation in the district. These interventions are about improving the quality of life in the course of facilitating an environment for participation in the economy and society. A selection of these projects includes:

Aerotropolis

New strategic approach to airport planning and commercial land use simultaneously benefitting airport, region and nation. Offers businesses located on and near the airport with speedy connectivity to their suppliers, customers, and enterprise partners nationally and worldwide. • Contains the full set of commercial facilities that support airlines and aviation-linked businesses as well as millions of air travellers who pass though the airport annually. An “inside the fence” Airport City is the commercial core of the Aerotropolis operating as its multimodal central business district heavily leveraged by the passenger and cargo terminals of the airport. It spines clusters of airport-linked business and residential complexes that form along airport transportation corridors up to 20 kilometres from some airports with significant economic impact measured up to 60 kilometres. These uses may include:

• Business and technology parks • Logistics parks and distribution centers • Industrial estates and light manufacturing • Retail centers and wholesale merchandise marts • Information and communications technology complexes • Higher education campuses • Hotel, convention, tourism and entertainment centers All these have play an important role in increasing opportunities for employment.

Manufacturing

The City of Ekurhuleni‟s economy and strength lies in the comparative advantage of the manufacturing sector that is higher than in other areas. A skilled workforce accommodated close to the manufacturing base, supports this. The availability of raw material and good transport linkages are the added advantage. Viable approaches to industrial development must see the multiple levels on which it occurs.

1 Geographical Overview of Ekurhuleni ( SoER 2003) and South Africa: Manufacturing, Tourism Sectors Incentivised July 2007


Industrial protection with respect to import parity pricing and other regulatory mechanisms are national programmes with implications at a local level. Facilitating improvements linked to these programmes is one role that the municipality can play. Further industrialisation would require a greater diversification of the economy into value added manufacturing and beneficiation – sustainable manufacturing, inroads into the new quadrant of the economy – ICT industries and Manufacturing: both advanced technology processes as well as labour intensity. Transport and logistics industries will be aligned to support the manufacturing base. The presence of the JIA, Rand Airport, the N12 and N3 freeways and the City Deep container terminal provide opportunities for the continued development of this industry to support exports. The overall development of manufacturing will be led by competitiveness within the Industry.

The College‟s response - Coordination and linkages with other stakeholders.

The College has responded to the potential at promise by the developments outlined above, through expansion of partnership networks with both business and SETAs. Through our Partnership and Business Unit strategic areas, we have first concluded a formal partnership with Ekurhuleni Municipality Metro for financial support of our students to be exposed to work placement. We have placed activities that will streamline the process of placement of our students in top 100 businesses in the local area. New partnerships with companies such as BOSCH, LG and Samsung have been concluded to enable implementation of a new learnerships in the domestic appliance field. Our plans further reflect the development of scarce skills through training of artisans. A programme in this regard has been introduced at our Tembisa Campus. Most of the CBDs around Ekurhuleni experience problems of urban decay but there are still big Malls that the college derives key strength from, such as:

Eastgate Mall

Bedfordview Centre

Lakeside Mall

Alberton Mall

East Rand Mall not withstanding Malls in the historically disadvantaged townships.

The College has identified the following five areas for development of niche programmes:

Engineering (in response to manufacturing as a major sector – Mechatronics, civil, automotive and electrical);

ICT (Provincial objective); Transport and Logistics; Services (Tourism and Hospitality) and Finance – Local objective Community Services in collaboration with Gauteng Department of Education, Department of

Environmental Affairs; Department of Trade and Industry (Dti); Department of Small Business Development and SETAs.

1.2 Areas of Excellence:

1.2.1. Academic Approach

The result-oriented approach of EWC ensures academic integrity and the ability to reach competitive results. The NC (V) pass rate for 2016 was 83.83%. The College is consistently working to improve the certification rate, which by definition remains a subset of the entire student population, which is currently at an average of 46% together with a throughput rate.

1.2.2. Upgrading of and extension of facilities:

Upgrading of and extension of facilities:

The college is consciously developing and refurbishing teaching and training facilities to match industrial state of the art levels as well as the accreditation requirements by the regulatory bodies. To date, the College boasts of a number of well-equipped workshops lined up with current and conceptual equipment and process some donated by industry for ensuring responsive learning. In the previous financial year, the College made great strides to complete a number of capital based projects, briefly expanded below:


A New buildings:

(i) The Corporate Centre with an attached 300 seater Auditorium has been completed. The architecture of the centre displays both modernism with integrated solutions for green and energy sufficient buildings.

(ii) The construction of the first of its kind Enterprise Hub building located at Kathorus Campus is at final finishing stages.

B Renovations and Refurbishments:

The following areas have been renovated to meet the current modern demands for occupation health and safety of staff wellness and conduciveness to learning:

i. The Staffroom and Administration Office at Kathorus has been expanded and completely renovated.

ii. The Staffroom at all its Campuses are being refurbished of which Boksburg and Tembisa Campuses have been completed in the past few years.

iii. Student Centres and Resource Centre at Boksburg and Kathorus are on the way and all designs have been finalised and construction for Boksburg campus started.

iv. The Halls at all its Campuses are being refurbished of which Boksburg Campus (new building) and Kempton Campus (refurbished) have been completed in the past few years.

v. The refurbishment of the Germiston Hall is completed and tender for the construction of the Kathorus Hall has been advertised.

vi. The two kitchens namely, training and industrial kitchen, as well as the restaurant at Alberton Campus has been successfully renovated and equipped.

vii. The 96 seater auditorium at Germiston Campus has been successfully renovated and equipped. viii. The student and staff ablutions at Kathorus and Tembisa Campuses has been fully renovated

with new toilet pans, washbasin vanities, urinals, lighting, wall and floor tiling and the fitment of water tanks on the Campus.

C Machinery and Equipment

(i) The five Campuses namely, Boksburg, Germiston, Kathorus, Kempton and Tembisa, Automotive workshops have been fitted with additional 2 and 4 post lifts and additional training vehicles have been included in these workshops.

(ii) The additional high quality equipment and software has been procured and in use for the Mechatronics workshop.

(iii) The Fitting and machining workshop at Kathorus has been equipped with new machinery, inclusive of CNC (Computer Numerical Controlled) lathes and milling machines.

(iv) The Welding workshop at Kathorus has been refurbished and equipped. (v) Ford Motor Company SA donated three Ford Rangers for Kathorus, Kempton and Tembisa

campuses. D General

The Lottery has also donated money for taking care of the grounds for students‟ recreation and combi-courts have been constructed at Alberton and Tembisa Campuses. The soccer field at Kempton Campus has also been upgraded with automated irrigation, new lawn and equipment. The paved walkways at Alberton Campus has been upgraded and new kerbing has been fitted at all paved walkways.

1.2.3. Integrated Administrative Systems

The College has a top class Business Management System known as ITS (Integrated Tertiary Software) which ensures a fully integrated administrative systems including Student Management, Financial Management, Human Resources (Personnel), Payroll, Library and Management Information. These systems see to the smooth collection of students‟ data that is produced in the most effective and efficient way and that is responsive to the needs of the Department of Higher Education and Training (DHET). The highlights of the system are the interrelated specialized modules for management of functions such as tracked procurement; statistical student performance reports; integrated database for student support service – workplace based placement and Human Resource processes.


1.2.4. Quality Manual and OHS

The College is boasting a record of repeated awarding of the ISO: 9001of 2008 SABS management standard in the past three years to current year- 2017 successively. In addition, the College implements and consistently under audit for the following quality standards: ISO 14001; SANS 2007; OHS and HIRA. In 2016 the College further introduced Impacts and Aspect Registers at all Campuses for the first time together with Waste Management Protocol. The College Quality Management System is run on our ITS data management system. The College‟s Quality Management System has been acknowledge as well run, in the 2017 South African National Auditor General‟s report. The Quality Management System was externally audited by SABS in 2016 in the following arrears: ISO:

9001 of 2008 (Quality) Kathorus Campus, Kempton campus and Corporate Centre.

It went well as we passed the audits with only minor findings that were raised. The auditors also

expressed their satisfaction with our QMS and made it clear we are improving in this area.

In terms of Environmental Management 2016 was the year we introduced impacts and Aspect Registers

at all campuses for the first time together with Waste Management Protocol.

The Annual QMS Management Review took place 24 – 26 October 2016 and all systems were reviewed

in terms of functionality, strengths and also areas earmarked for improvement. The 27001 (Information

Security Management System) and 14001 Standards (Environmental Management System) were also

reviewed in this Management Review. After the three days the Principal signed the STATEMENT OF

COMPLIANCE of the Quality Management System. All presentations and information of this review is

available on our QMS, INSIDEEWC.

1.2.5 Centre for Entrepreneurship (CfE)

EWC has launched the Centre of Entrepreneurship at Kathorus Campus with an appointed Director and support staff. The objective of the Centre is to promote entrepreneurship, and facilitate entrepreneurial development of students and surrounding communities. Centre has an obligation to train the EWC students on entrepreneurship and introduce and expose them to the relevant world. The Dti and Small Business Development support the Centre. The establishment of an Enterprise Hub (Incubation Centre) funded by SEDA has just been approved.

Programme offered:

Start-up 1 training

The Small Enterprise Start-up training

Geared for Business

Marketing for Entrepreneurs

Finance and Accounting for Entrepreneurs

Get Ahead

1.3 Critical Skills

The programmes that are offered also address amongst others the following critical skills:

transferable skills, such as the ability to think critically and analytically;

good communication skills;

reading, writing and problem-solving skills;

entrepreneurial and calculating skills;

Information technology (computer skills).

The programmes also comprise of conceptual and applied knowledge. Each programme has a theoretical as well as practical component where students are exposed to practical experience in either a workshop or simulated enterprises office environment or obtaining relevant experience in the work environment.


One of the strategic objectives of the College is to create partnerships with Commerce and Industry in order to offer students a real working environment practical experience.

1.4 Accreditation

The following programmes have been accredited.

Automotive Repair Maintenance: Level 2 Workshops Kathorus and Germiston Campuses. Level 2-4 Workshops at Kempton and Tembisa campuses (MERSETA).

Hairdressing: Level 2, 3 and 4 Germiston and Kempton Campuses (Services SETA).

National Certificate in Professional Cookery: Level 4 Germiston Campus (CATHSSETA).

Cosmetology (Beauty Therapy) and Hair Care– City and Guilds Accreditation – Germiston registered as Centre and Kempton as sub centre.

City and Guilds Certificates and Diploma in Hospitality and Food Services – Germiston campus.

e-Learner and Webstarter by ICDL Foundation – Germiston campus.

Comptia Membership on Computer Engineering courses (Computer Technician – A+ and Networking Technician – N+) – Germiston campus.

Building and Civil Construction level 3 Tembisa Campus (CETA)

Environmental Practice level 2 - 4 Kathorus Campus (LG SETA)

1.5. Achievements 1.5.1 International Visits

The College had an opportunity of sending a delegation and receiving a delegation to and from Germany every year from Ludwig Erhard-Schule in Fürth, Germany.

1.6. Partnerships and Linkages.

1.6.1. Ludwig Erhard-Schule Fürth in Germany.

EWC has been involved in a social and cultural exchange scheme with the Ludwig Erhard-Schule in Furth located in the Bavarian region of Germany, for over ten (10) years. Students and Lecturers of the Ludwig Erhard Schule visit EWC yearly to experience first-hand the vocational education, different cultures, and Eco tourism in South Africa. A delegation from EWC also visits Germany to obtain first-hand experience regarding the dual vocational system and different cultures in Germany.

1.6.2. Sisonke Partnership Pty Ltd

EWC has signed an MoU with Sisonke Partnership after having been involved with the Network for Black Professionals (UK) in the mentor – mentee training funded by the British Council. Through Sisonke Partnership middle managers received training on Monitoring and Evaluation. The training on Employability Skills has started for both lecturers and students.

1.6.3. GIZ

Work Based Exposure of Tembisa students and Dual System Pilot Project in Electrical Engineering.

1.6.4. South African Airways Technical

The college signed a MoU with SAAT in 2011 and two ministers – Dr Blade Nzimande and Mr Malusi Gigaba co-signed with the two parties. The relationship is supported by the South African Airways and its


subsidiaries. Among other things it does workplace placement of both lecturers and students; dealing with curriculum assessment of Avionics and Aircraft Maintenance.

1.6.5. Barloworld Equipment (Pty) Ltd

EWC signed a MoU with Barloworld in 2010. The two parties are doing learnerships together of NC (V) students to fast track them for apprenticeship; workplace placement of lecturers and students and sharing of expertise. EWC lecturers are also placed at Barloworld Equipment to experience training on Basic Hydraulics and Power Train Fundamentals.

1.6.6. Emperors Palace

The college has a working relationship with Emperors Palace of doing training together of using facilities, student‟s work-based-exposure, and internship and lecturers workplace placement.

1.6.7. Wholesale and Retailers Companies

The college is doing work-based-exposure of students during holidays and weekends at Foschini Group Sports shops; Mr Price and Pick „n Pay shops around Ekurhuleni. The Wholesale and Retail SETA fund the students on TFG project. Makro partnered with W&RSETA donated stock and refurbished the simulation centre at Boksburg campus.

1.6.8. Ekurhuleni Metropolitan Municipality

EWC; EMM and EEC have signed an MoU during Youth month, in 2012. The group has undertaken to do training together, placement of both lecturers and students mostly in their electrical department, RPL of EMM employees.

1.6.9. Otis SA

A partnership was initiated in 2009 by Otis Management to assist the company with placement of students for a learnership in lifts repair. The learnership will be based at Otis. College lecturers can be used to facilitate fundamental subjects. The college was able to place students on a learnership with possibilities of employment.

Otis also pledges their support towards workshop equipment in the form of a donation and wants to assist disadvantaged students by giving a bursary.

1.6.10. Renault SA

As part of their social responsibilities, Renault SA donated two ‘prototype’ vehicles that are utilised for training of students at Kathorus and Tembisa Campuses the first car for Kathorus had been received presented by the Renault SA, MD – Mr Xavier Gobille and the 2

nd one by Ms Jenni Stephen - HR

President. 1.6.11. Transnet Engineering The college signed an MoU with Transnet Engineering at a prestigious function at Tembisa Campus. The campus received a donation of Welding equipment from Transnet Engineering handed by the Group Executive. Lecturers and students have been placed at Transnet Engineering in their different departments. EWC trains staff of Transnet Engineering too. 1.6.12 LG Electronics SA The college signed an MoU in 2013 and a pledge at LG Electronics SA in Gosforth. The Deputy Minister of Higher Education and Training, Mr Mduduzi Manana, co-signed the pledge. Students are placed at LG for internship and some already received promotional posts and others are technicians. 1.6.13 Samsung Engineering Academy


EWC is among the four (4) colleges that have NC (V) students at Samsung for a learnership. Students attend once a week for 12 months to prepare them for a World of work even up to South Korea.

1.6.14. Scaw Metals

Placement of engineering students for WBE and WIL.

1.6.15 Ford Motor Company of Southern Africa

Ford Motor Company donated three Ford Rangers for Kathorus, Kempton and Tembisa Campuses to be used solely for training in the workshop.

1.7. Goals

EWC is experiencing another year of hard-work having released funds from the National Skills Fund for expansion of colleges and capacity building and we are more geared for great partnerships towards skills development and are expanding on the ventures of partnerships with the adoption of the National Skills Development Strategy lll (NSDS III) by the Minister of Higher Education and Training, Dr Blade Nzimande and the signing of the Skills Accord. This will give the college leverage in forming partnerships with industry and SETAs. It also assist the college on Artisan Development.

The college is also working its fingers to the bone to increase its throughput rate on both Report 191 and NC (V).

1.8. Our Strategic Key Priorities

Provide affordable programme delivery.

Ensure accessibility to deliver systems.

Ensure excellence in programme presentation.

Ensure adherence to quality assurance standards. Satisfy Industry and Community needs. Develop and maintain an effective and efficient employee complement which equates to the goals of Employment Equity legislation.


1. MESSAGE FROM THE COUNCIL CHAIRPERSON

This Annual Report for Ekurhuleni West TVET

College is presented to the Department of Higher

Education and Training as required by

legislation. This report encapsulates the

achievements of the College for the 2016

academic year. Each time we present the Annual

Report we bear witness to the enduring strength

of our belief in education and specifically in

vocational education and training – our core

mandate. We affirm the promise of our

democracy. We call that what binds us as part

of the TVET College sector is not our individual

college name or our institutional history, but our

allegiance to the ideas articulated in the

constitution of the country “Education for All” and

the supporting mix of various legislations such as

the CET Act No. 16 of 2006, as amended;

Higher Education and Training Laws

Amendment Act 25 of 2010, supported by the

National Skills Development Strategy III (NSDS

III). All these pieces of legislation inform the

design and the implementation of the

programme qualifications mix (PQM) of our college. All these work towards.

“Strengthening and repositioning the FET College sector … at the centre of skills development”.

As Council of EWC, we remain committed to the national mandate given to TVET Colleges to function as

a high quality, transformed and responsive system as well as the enhancement of learner mobility and

progression, to ultimately meet human resource needs. EWC‟s mission remain conscious of the objective

to provide our youth with intermediate to high-level skills that would lay a foundation for higher education

and facilitate the transition from school to work. The driving theme behind our achievement in the 2016

academic was “Imagine the possibilities”. Through this theme we instilled an organizational culture

that promoted excellence and the unimaginable possibilities! We are proud to report on our institutional

gains through this Annual report.

Funding is instrumental in making TVET institutions effective in achieving national goals, performance

enhancement, widened participation and promotion of equity and redress. It is in this spirit that we reflect

on the gains made with the public resources offered to us and, the plans for continued growth henceforth.

I therefore would like to express my appreciation of the good work the college is presenting, and my

encouragement on the areas that remain a challenge to us. We are mindful that our hard-work happens

against the backdrop of wide ranging national challenges related to a dwindling economy.

As a College Council we are indebted to our strategical partners for upholding their commitment and

responsibilities, making our vision to come alive. “EWC will be a leading Institution in South Africa”.

I am grateful for what we achieved in 2016 and continued to work the talk to ensure maximum

achievements, quality and student success. A special word of thanks goes to my fellow Council

members.


____________________ Dr M. Mohlala Chairperson of College Council


2. OVERVIEW BY THE ACCOUNTING OFFICER

The core challenge facing South Africa in education

terms, is the development of a skilled and

competent society. While this challenge may sound

mundane to developed countries, the historical

backlog and the consequence of an orchestrated

system to provide poor quality to the majority of our

population remains a haunting reality that remains

persistently present. TVET Colleges are tasked with

developing intermediate skills in multitudes of youth

as an ethically calculated strategy to break the back

of poverty. Ekurhuleni West TVET College, as one

of the 50 public TVET colleges national wide, take

pride in presenting the Annual Report for 2016, with

highlights of our achievements.

Academic performance in our business is an internal barometer reflecting the state of health of the

business. I am proud to highlight our achievement of a subject pass-rate of 83.83% in our NC (V)

programmes. This success indicates a significant number of our young citizens who have learned a new

skill subject by subject. As a College we have placed great effort in increasing the work place based

learning opportunities for our students. To this end, the College has instituted a synchronized, common

database from which students‟ information is drawn. We have remained mindful of implementing best

practices that reflect our business values and culture to our stakeholders such as our Quality

Management System based on a myriad of worldwide recognized standards: ISO: 9001 of 2008; ISO

14001; SANS 2007; OHS and HIRA. It is with pride to note that the College has retained these standards

in 2016 and in the previous years in succession based on annual audits. These quality standards

ensure the highest quality in the manner in which we deliver our mandate. Furthermore, the College has

received an unqualified report from the financial audit of the highest office in the country the – National

Auditor General.

The re-conceptualization of the TVET Colleges for responsiveness meant increased establishment of

partnerships and linkages with industry. The College has made significant gains in this area as we

continued to maintain and foster new relationships with a number of companies in in different industries.

To name but a few: Fiat Chrysler Automobile South Africa donated brand new Fiat motor vehicle

components parts to our Boksburg campus. Long standing partnerships with Bosch, Samsung, South

Africa Airways have been maintained. Our extent of success is also indicated by the network of

international partnerships as well as with SETAs with regard to delivery of scarce skills. We have made

successful in-road in expanding our current net of SETAs (MERSETA; ETDP; WRSETA) to include

among other INSETA in the delivery of learnerships in short term insurance.


The 2016 Annual Report further presents a reflection on the completion of capital investment projects a

mix of refurbishment of our workshops for accreditation and building of new infrastructural facilities in line

with our mission statement of opening access and delivering high quality teaching and learning. Among a

few to mention is the completion to occupation status of the mega Corporate Precinct near Germiston

Campus, the Entrepreneurial Centre in Kathorus and the Exam hall in Kempton Park.

This Annual report, also reflects on the quality of support afforded to our enrolled students. The nature of

support spans across their entry, during their stay with us and include all the support at their exit. Above

all we take pride in the improvement we have made in understanding our management information

system following the upgrading of our Bandwidth to 100Mbs. I am proud of the demonstrated outlook to

explore new modules of the system and unleash its potential power.

This Annual report presents our accumulated effort in moving forward towards the full implementation

and realization of our vision in the newly extended TVET environment. I, the principal of EWC TVET

College, endorse this Annual report and the commitment displayed by the college management, staff,

council and most imported our customer - the students. Kea Leboha!

________________ Hellen M. Ntlatleng Principal


3. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed throughout the annual report are consistent.

The annual report has been prepared in accordance with the guidelines issued by the Department of higher Education and Training.

The annual financial statements have been prepared in accordance with the relevant standards, frameworks and guidelines issued by National Treasury.

The accounting officer, i.e. the principal, is responsible for the preparation of the annual financial statements and for the judgements made in this document.

The accounting officer, i.e. the principal, is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.

The Auditor-General and/or external auditors express an independent opinion on the annual financial statements.

In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of Ekurhuleni West TVET College for the financial year ended 31 December 2016. Ms. H.M. Ntlatleng Principal


4. STRATEGIC OVERVIEW

4.1 Vision, Mission and Value Statements

EWC will be the

leading TVET

institution in South

Africa.

VISION

Where we

want to be

EWC aspires to equip learners with knowledge and skills by offering appropriate, quality, education and training programmes in order to empower students to readily obtain employment or become self-employed. In providing training EWC strives to: • Provide affordable programme

delivery • Ensure accessibility to delivery

systems • Ensure excellence in programme

presentation • Ensure adherence to quality

assurance standards

MISSION

Why we

exist

The following key concepts were identified as core values of EWC.

Freedom of inquiry and the advancement of knowledge

Respect and appreciation for different ideas, opinions, values beliefs, ethics and cultures;

Intellectual honesty in the pursuit of knowledge

Diversity in all areas of campus life;

Freedom of expression;

Responsiveness to community needs;

Freedom from all forms of harassment

VALUES

How we

behave

STRATEGIC GOALS

AND INITIATIVES

What we are going to

do

- Provide affordable programme delivery - Ensure accessibility to delivery systems - Ensure excellence in Programme presentation - Ensure adherence to quality assurance standards - Satisfy Industry and Community needs - Develop and Maintain an effective and efficient employee complement which equates to the goals of the Employment Equity legislation

INDIVIDUAL

PERFORMANCE

How we manage our

individual performance

Through the following Structures:

- Executive Management

Team (EMT)

- Broad Management

Team (BMT)

- Campus Managers and

EMT.

- Divisional meetings.

- HoD Forums.

- Staff meetings.

- EMT and SRC meetings.

- Parents meetings.

- External Stakeholders

meetings.

ORGANISATIONAL

PERFORMANCE

How we manage our collective

performance

Through the following structures:

- College Council Statute and Code of

Conduct.

- Academic Board (Terms of

Reference)

- Risk and Audit Committee (Charter)

- Committees of Council

- SABS external audits on ISO: 9001

of

2008 OHS: 18001 of 2012

- Internal Audits Environmental: 14001

ISMS: 27001

- Audited Financial

Statement (unqualified reports).

- Internal Financial Audit

- DHET examinations results on NC

(V) and

Report 191

- Enrolments targets.

- Other Accreditation bodies

City and Guilds

SETAs Accreditation


4.2 Strategic Objectives

TVET COLLEGE STRATEGIC OBJECTIVES

Strategic Objective 1

To ensure continuous business excellence in terms of good corporate governance and effectual management of all college resources as well as information and data reporting. (Governance and steering)

Objective Statement

To govern and steer the college to function optimally and take appropriate action where deficiencies are detected.

Justification To ensure the college is efficiently governed and managed within the applicable acts, policy and regulatory frameworks and standards relevant thereto so that it functions optimally.

Links Linked to NDP, MTSF and White Paper on PSET

Performance Indicator/s linked to this Objective

Assessment of College Council by DHET. Training of college council on Corporate Governance. Action Plan of college council to be put in place.


To provide quality technical and vocational education and training services and increase academic achievement and success of students.

Objective Statement

To improve quality of technical and vocational education and training provision through the development of teaching and learning support plans, inclusive of appropriate student support.

Justification

To ensure that lecturers and students receive the support necessary for lecturers to function optimally and students to perform optimally in technical and vocational programmes. To ensure improvement in student success in programmes offered at the college as well as student progression (measured in terms of pass rates).


Links Linked to NDP, MTSF and White Paper on PSET, EWC Teaching & Learning Plans, EWC SSS Plans

Performance Indictor/s linked to this Objective

Performance outcome indicators:

1. Certification rates in TVET qualifications (%) 2. Compliance with national policy of college examination centres

conducting national examination and assessments - 100% 3. Throughput rates (%) 4. Funded NC(V) L4 students obtaining qualification within stipulated time 5. TVET students placed in workplaces/industry for specified periods for

work exposure or experiential learning (n) 6. Students enrolled into artisan-related programmes (n)

Pass Rates Programme 2015 2016 2017 2018 NC (V) 81,91 % 83,83 % 85 % 85 % Report 191 Engineering

61,81 % 62,31 % 75 % 80 %

Report 191 Business

79,34 % 81,02 % 82 % 82 %


To have adequate infrastructure and systems in place to increase access and provide effective services to students.

Objective Statement

To ensure institutional capacity and efficiency in terms of the provision of access and support services to students.

Justification To increase the number of skilled youth by expanding access to education and training opportunities while ensuring provision of effective services to students.

Links Linked to NDP, MTSF and White Paper on PSET


Performance outcome indicator 1 – Head count enrolments


To develop partnerships and maintain good stakeholder relations to increase the number of students who are adequately prepared to enter the labour market or further and higher learning opportunities, and improve the skills of lecturers to the latest technology by exposing them to the industry


Objective Statement

To increase the number of students who are able to access formal or self-employment and/or further and higher education and training opportunities. To provide work placement opportunities for lecturing staff in order to improve quality of teaching and learning. To lead and produce quality skill full workforce to the industry and maintain mutual relationship

Justification To ensure students are adequately prepared and supported to access formal or self-employment and/or further and higher learning opportunities.

Links Linked to NDP, MTSF, White Paper on PSET and EWC Partnership policy


TVET lecturers placed in workplaces for specified periods (n) 2019/20 target is 100,2016-68% achieved from target of 100.2017 target 110 (10% increase), 2018 target is 120 and 2019 target of 130(10% increase) TVET students placed in workplaces/industry for specified periods for work exposure or experiential learning (n) 56 Students enrolled into artisan-related programmes (n) for 2016 in partnership with MerSETA and GIZ (dual system) Artisan training will increase by more than 40 percent with the assistance of MerSETA artisan development funding for training


To ensure continuous effective excellence in terms of good Corporate administration and management (college system efficiency) as well as accurate and reliable information and data reporting.

Objective Statement

To implement business continuity management system that works closely with the corporate governance process in ensuring that the disaster recovery plans are able to identify, assess and respond to potential disruptions.

Justification To ensure the college‟s management system is not disrupted and that the data produced is effective, accurate, reliable and authentic.


Links

Linked to NDP, MTSF and White Paper on PSET Monitoring and Evaluation report Monitoring of IT service providers ISMS 27001


Performance outcome indicators:

1. Headcount enrolments (n) 2. Certification rates in TVET qualifications (%) 3. Throughput rate (%) 4. Funded NC (V) L4 students obtaining qualification within stipulated

time (%) 5. Students enrolled into artisan-related programmes (n)


5. LEGISLATIVE AND OTHER MANDATES

5.1 Legislative Framework In terms of Sections 25(3) and 25(4) of the Continuing Education and Training (CET) Colleges Act, No 16 of 2006 (as amended), public technical and vocational education and training (TVET) colleges are required to produce annual financial reports and to comply with any reasonable additional reporting requirement established by the Minister. Moreover, Section 44 of the Act requires colleges to annually report to the Minister in respect of its performance and its use of available resources. In addition, these pieces of legislation govern and steer the college in terms of achievement of its strategic and performance objectives. The Constitution of the Republic of South Africa (Section 29(1)-(4)) provides for the right of basic and further education to everyone in the official language of their choice provided equity, redress and practicability are taken into account. In addition, the Continuing Education and Training (CET) Colleges Act (No 16 of 2006) provides for the regulation of continuing and further education and training through the establishment, governance and funding of public technical and vocational education and training (TVET) colleges and the promotion of quality in continuing and further education and training. Further sets of legislation that impact on the TVET colleges sector and its strategic and national imperatives are listed below: o National Qualifications Framework (NQF) Act (No 67 of 2008); o Higher Education (HE) Act (No 101 of 1997); o Skills Development Act (No 97 of 1998); o Skills Development Levies Act (No 9 of 1999); and o General and Further Education and Training Quality Assurance Act (No 58 of 2001). o Public Service Act, 1994 o Labour Relations Act (No 66 of 1995) o Employment Equity Act 55 (No 55 of 1998) o Basic Conditions of Employment Act (No 11 of 2002) o Preferential Procurement Policy Framework Act (No 5 of 2000) as amended o Public Finance Management Act (No 29 of 1999) as amended In addition, the White Paper for Post-School Education and Training mandates delivery and strategic priorities in the TVET colleges sector. Other policy mandates include: o National Trade Testing Regulations; o SETA Grant Regulations; o National Skills Development Strategy NSDS III; o Public TVET College Attendance and Punctuality Policy; and o Policy on the Conduct of National Examinations and Assessment. o Treasury Regulations 2002 (Gazette No 23463 of 25 May 2002) o National Development Strategy 2030 O New Growth Path: Accord 1 - National Skills Accord 5.2 Annual Cycle of Reporting The final annual reports of the TVET colleges must be submitted to the Department on 30 September of every year. These reports, referred to in Sections 25 and 44 of the CET Colleges Act, must include: o a report on the overall management and governance of the college; o a report on its overall performance and use of available resources; o duly audited annual financial statements; and o any additional information required by the Minister in terms of the Act.


5.3 Audits and verification timeframes The table below reflects the periods during which audits will be conducted annually for enrolment dataset of the previous academic year as per “Audit and Verification of TVET College Enrolment Policy”.

External audit by AG April to May annually

Internal audit by college-appointed auditors January to May annually

Departmental Verification February to March annually

Annual report submission with unaudited headcount (electronic copy)

31 March of year of audit

Annual financial statements (unaudited) submission

31 March of year of audit

Annual financial statements (audited) submission 31 March of year of audit

Annual report submission with audited headcount 30 June of year of audit


6. HIGH-LEVEL ORGANISATIONAL STRUCTURE College Staff Establishment below:

No STAFF ESTABLISHMENT

(Funded Posts) Number of staff Fixed term

1 Total number of staff 569 96

2 Total number of lecturer 370 80

3 Support staff 199 16

4 Total vacant 46 0

(Non-funded posts)

6 Total number of staff 0 14

7 Total number of lecturer 0 1

8 Support staff 0 13

9 Total vacant 0 0

Please refer to the attached College Organisational Structure


Business Unit

- Learnerships

- Skills Training

- Setas

- Workshops

Accreditation

EWC College Council

Principal

Chief Excecutive

Personal

Assistant

Deputy Principal

Chief Financial Officer

(Vacant)

Personal

AssistantDeputy Principal

Corporate Service

College

Scribe

(Vacant)

Deputy Principal

Academic Affairs

(Acting)

Personal

Assistant

Academic

Affairs

Manager

Campus

Managers

x6

Student

Affairs

Manager

(New)

Head Of

Schools x2

Sports &

Culture Officer

Management

Accounting

Manager

Assistant

Director SCM

Risk

Management

Outsourced

Financial

Officer

Payroll Clerk

Bank Rcon

Clerk

Payment

Clerk

Creditors

Clerk

Payments

Clerk

Creditors

Clerk x2

SCM Clerk *4

Fleet Officer

(Vacant)

OHS Officers

X3

(1 Vacant)

Campus Asset

Clerk x6

Marketing &

Communication

Manager

Management

Assistant

(Vacant)

Senior Marketing

Officer (Vacant)

HR Manager

&

Administration

(Vacant) IT Manager

HR Clerk x 2

Skills

Development

Facilitator

Labour Relations

Officer and EAP

(MIS)

Administration

ICT

Administrator

Receptionist/

Switchboard

operator

Link to head

of Admin

Campuses

Campus

Technicians

* 8

Management

Assistant

Remedial

Lecturers x6

EWC ORGANOGRAM

Personal

Assistant

Campus

SSSO x6

Management

Assistant

Estate Manager

Asset Officer

(Vacant)

Security

Facilities

Campus

Fleet x6

Management

Assistant

Internal

Auditing

Outsourced

Financial aid

Clerk

EWC GOVM GUID 001 6000 2007 R01 20 October 2016 Page 1 of 1 HM N/hm n

Quality

ManagerProcess

owners

Partnership &

Linkages

Manager

Management

Assistant

Debtors

officer

Debtors

ClerkCall Centre

Campus

Debtors

Clerk

Kempton

Campus

Acting

Manager:

HoD x2

Kathorus

Campus

Manager:

HoD x2

Germiston

Campus

Acting

Manager:

HoD x3

Tembisa

Campus

Acting

Manager:

HoD x2

Boksburg

Campus

Manager:

HoD x2

Alberton

Campus

Manager

HoD x2

Management

Assistant

Marketing Officer x2

Marketing Clerk

(1 Vacant)

Campuses

Student

Support

Manager

(Vacant)

Centre for

Entrepreneurship

Director

Project Officer

(Vacant)

Educational

Psychology

SNE

First Aid Centre

HIV/AIDS

(New)

Programme

Facilitator

Programme

Administrator

Asset Clerk

x2

SRC

Assistant

Business Unit

Manager (New)

Financial

Manager

(New)

*3 Campus Managers Vacant

*2 Head of Division

*Germiston Campus Vacant

*48 ETLs

*HoS – 1 Vacant

*Remedial – 2 Vacant

*SSSO – 2 Vacant


PART B: PERFORMANCE INFORMATION

1. COLLEGE PERFORMANCE AND ORGANISATIONAL ENVIRONMENT


Enrolments Statistics

Campus Name NC (V)

2014 2015 2016

Alberton 1141 1120 1164

Boksburg 764 805 881

Germiston 1509 1456 1521

Kathorus 1633 1213 1305

Kempton 1320 1290 1300

Tembisa 1335 1494 1489

Sum 7702 7378 7660

Report 191 Business and Engineering Enrolments

REP 191 ENG

REP 191 BUS

2014 2015 2016 2014 2015 2016

Full and Part Time

Campus Name

Germiston 3565 3415 3434 1875 1944 1970

Kathorus 1408 1647 1801 631 711 964

Kempton 3622 3059 2817 1374 1493 1668


Sum 8595 8121 8052 3880 4148 4602

EXAMINATIONS RESULTS COMPARISON

National Certificate (Vocational) – NC (V) – PASS RATES

Academic Year 2015 2015 2015

2016 2016 2016

ENROLLED PASSED WRITTEN


Faculty School Campus Name

NCV ALBERTON 7468 5325 6293 84,62% 7806 4898 6042 87.24%

BOKSBURG 4718 3064 3888 78,81% 5277 2878 3661 84.73%

GERMISTON 8845 6389 7722 82,74% 9173 5873 7462 84.55%

KATHORUS 7529 4803 6296 76,29% 8581 4452 6029 77.67%

KEMPTON 7474 4753 6097 77,96% 7859 4489 5959 78.57%

TEMBISA 8839 6811 7726 88,16% 9655 6806 8314 88.54%

EWC 44873 31145 38022 81,91% 48351 29396 37467 83.83%

Report 191 Business and Engineering Studies

Academic Year 2015 2015 2015

2016 2016 2016



Faculty School Campus Name

REP 191 ENG GERMISTON 7805 4689 7336 63,92% 8440 5198 7921 65.60%

KATHORUS 5746 3121 5320 58,67% 6395 3056 5887 51.91%

KEMPTON 7123 4037 6512 61,99% 6691 4232 6231 67.92%

EWC 20674 11847 19168 61,81% 21526 12486 20039 62.31%

REP 191 BUS

GERMISTON 6488 5091 6317 80,59% 6600 5162 6270 82.33%

KATHORUS 2361 1822 2250 80,98% 3299 2337 2943 79.41%

KEMPTON 4277 3124 4084 76,49% 4802 3579 4460 80.25%

EWC 13126 10037 12651 79,34% 14701 11078 13673 81.02%

2. PERFORMANCE REPORTING

2.1. Significant Achievements during the 2016 Academic year (i) Enrolments Statistics

Campus Name NCV

2014 2015 2016

Alberton 1141 1120 1164

Boksburg 764 805 881

Germiston 1509 1456 1521


88,54% 87,24% 84,73% 84,55% 83,83%

78,57% 77,67%

NC (V) November 2016 combined subject results All programmes per campus hi to low

Kathorus 1633 1213 1305

Kempton 1320 1290 1300

Tembisa 1335 1494 1489

Sum 7702 7378 7660

Report 191 Business and Engineering Studies

REP 191 ENG

REP 191 BUS

2014 2015 2016 2014 2015 2016

Full and Part Time

Campus Name

Germiston 3565 3415 3434 1875 1944 1970

Kathorus 1408 1647 1801 631 711 964

Kempton 3622 3059 2817 1374 1493 1668

Sum 8595 8121 8052 3880 4148 4602

(ii) Results Analysis


90,87% 87,25% 87,07% 85,03% 83,82% 76,27% 74,63%

LEVEL 2 NC (V) November 2016 combined subject results

All programmes per campus hi to low

EWC 2012 EWC 2013 EWC 2014 EWC 2015 EWC 2016

66,88% 76,43% 77,05% 81,84% 83,83%

NC (V) November subject results for all programmes combined 2012 - 2016


87,53% 85,60% 85,07% 84,25% 84,07%

80,94% 79,67%



Tembisa Alberton EWC Boksburg Germiston Kempton Kathorus

88,14% 87,04%

83,52% 83,51% 82,91%

80,99%

76,66%




70,00%

72,00%

74,00%

76,00%

78,00%

80,00%

82,00%

84,00%

83,64%

82,74%

80,11%

74,83%

79,18%

P

A

S

S

P

E

R

C

E

N

T

A

G

E

STUDY FIELD WITHIN BUSINESS STUDIES

BUSINESS STUDY FIELDS - PERFORMANCE IN 2016

MANAGEMENT

MARKETING

FINANCE

OFFICE ADMIN

TRANSPORT

(iii) Student Support Services DHET Bursary allocations in 2016

grade of sports and recreational facilities NC (V) and REPORT 191

A report dated 23 November 2016 indicated Total students that applied = 7720 Total paid by NSFAS to EWC for 5677 students = 63.7% Development of and tracing students

Comparison of DHET - Bursaries awarded – NC (V) & Report 191 (as at October each year)

Year 2014 2015 2016

NC (V) & Report 191 R 69 140 854 R 72 402 448 R48 580 074


EWC Student Representative Council (SRC) 2016

Campus Name & Surname Programme Level SRC Portfolio Gender

Alberton Thabane Buthelezi Marketing L4 Secretary Male

Tshegofatso Ramonye Hospitality L3 Community Services Male

Jazzman Timati Man L4 Arts And Culture Male

Amanda Mjoli Marketing L3 Sport Female

Boksburg Tshepo Lekhethe Electrical L4 SRC President Male

Mzuvumile Mathafeni Electrical L3 Community Services Male

Themba Kunene Marketing L3 Marketing And Communication

Male

Palesa Matlebe Marketing L4 Arts And Culture Female

Germiston Bongimusa Kaunda Electrical Engineering

N5 Quality Management Male

Tumelo Mabidilala Electrical Engineering

N3 Sport Male

Stanley Hlatshwayo Marketing L4 Arts And Culture Male

Unathi Mutele Electrical Engineering

L3 Marketing And Communication

Female

Kathorus Kgomotso Matsho Electrical Infrastructure Construction

L4 Treasurer Female

Mike Mahlangu Engineering & Related Design

L4 Sport Male

Phindile Godlo Finance, Economics & Accounting

L3 Arts And Culture Female

Kgotso Mashedi Mechanical Engineering

N5 Sport Male

Kempton Neo Sehlabane Information Technology

L4 Facilities And Infrastructure/OHS

Male

Jabulane Mzobe ERD L4 Community Services Male

Live Nxokwana Office Admin L3 Arts And Culture Female

Simnikilwe Letlalo Tourism L4 Sport Female

Tembisa Lwazi Mabophe Management L4 Deputy President Male

Wendy Nkonyane Information Technology

L4 Arts And Culture Female

Sello Malatji ERD – Automotive

L4 Facilities And Infrastructure/OHS

Male

Luther Rakgoale Civil L3 Sport Male

(iv) Centre for Entrepreneurship Get Ahead Workshop


The total number of exit level students who completed the Get Ahead Programme in 2016 is 637. The table below provides figures of exit level students trained per campus:

Campus Number of Level 4 trained

Enrolled Level 4 students

Number of N6 trained

Enrolled N6 students

% Trained

Alberton 175 201 - - 87

Boksburg 85 90 - - 94

Germiston 0 490 - - 0

Germiston - - 0 1205 0

Kathorus - - 63 516 12,21

Kathorus 0 383 - - 0

Kempton 142 261 - - 54

Kempton - - 70 1199 6

Tembisa 102 463 - - 22

Entrepreneurial Campus of the Year Award The 2016 Entrepreneurial Campus of the Year Award went to Kempton Campus. The campus was recognized for the sterling role it played in promoting entrepreneurship at EWC, and also in supporting students to establish businesses. CEO Business Plan Competition The 2016 edition of the Annual CEO Business Plan Competition came to a closure on the 16

th of

September 2016 with the award ceremony. The total awards given on the day were eight and the total prize money won R150 000. The money won to be used as seed capital, i.e. help students buy equipment and machinery to start their business. The Centre in association with SEDA Kempton Park placed the seventeen finalists who submitted revised business plans on a R9 000 programme, a Department of Small Business Development initiative that seeks to support informal traders with money to be able to participate in the mainstream economy. The participants enrolled a two week programme in December 2016 and received R9 000 each in the first quarter of 2017. The Centre also assisted the finalists to register their businesses with CIPC, and obtain tax clearances and BEE certificates. Moreover, the Centre hosted a two day marketing workshop for all the entrepreneurs in the Centre‟s ecosystem, where the twenty finalists were invited to attend/participate. Below is a list of all the winners of the CEO Business Plan Competition:

Full Name Campus Award Prize Money

Patience Mzanzi Germiston Overall winner R50 000

Thobeka Dladla Germiston 1st runner up R30 000

Monica Mkhaza Kempton 2nd runner up R20 000

Simphiwe Mabuza Alberton 3rd runner up R10 000

Lehlohonolo Kgola Boksburg 4th runner up R10 000

Thobeka Dladla Germiston Best oral presentation R10 000

Patience Mzanzi Germiston Best written business plan

R50 000

Thobeka Dladla Germiston Best oral presentation R10 000

The Establishment of an Enterprise Hub (Incubation Centre) The process of establishing an Enterprise Hub at the College is well underway and the first group of 30 incubates targeted to be enrolled in October 2017. (v) Business Unit


The report covers the activities that took place in 2016 as follows:

Grants

Learnerships

Apprenticeship

Placement

Training

Establishment of a new W&R SETA Practicum

Grants Grants received between 2015 and 2016 were as follows;

NARYSEC LEARNERSHIP GRANT : R1,050 000.00

W&RSETA PRACTICUM ROOM GRANT : R250,000.00

GDE ESSP TRAINING: R 15,760,293.00

MERSETA ARTISAN DEVELOPMENT: R4,319,850.00

INSETA WIL GRANT : R6,300,000.00

FP&MSETA WIL GRANT: R600,000.00

BANKSETA WIL GRANT : R1,417,500.00

FOODBEV SETA : R288,000.00 Learnerships The following learnerships were approved:

Further Education and Training Certificate -Business Administration Level 4 SAQA ID: 61595 • National Certificate – Wholesale and Retail Operations. Level 2 ID: 58206

Apprenticeship MOU was signed with MerSETA to train 31 students as follows:

Fitting & Turning – 10 Germiston Campus Electrician – 10 Kathorus Campus Motor Mechanics – 11 Tembisa Campus

Skills training

EWC signed an MOU with GDE to train 1721.

The students were trained on the following unit standards:

Early Childhood Development [ID: 244472]

Office Administration [ID: 110021 & ID: 14667]

Clean and Maintain Area: [ID 113818] Certificate function The ESSP certificate functions of educators and workers were held as follows:

24 June 2016 – D6 Germiston Campus, 52 teachers

5 August 2016 – Tembisa campus hall, 295 workers

12 August 2015 – Springs Hall, 1031 workers

23 September 2016 – Thokoza Auditorium, 1314 workers Placement

ICASS Placement for Business studies – 752 out of 786 (97%) The students were placed in the following companies: ABSA, Emperors Palace, RAM Couriers, White Zulu, Transnet Engineering, Ekurhuleni Metropolitan Municipality, SAPS, Nestle, Actom, Scaw Metal Group, P & G, Fedics, Birchwood and Clicks. Engineering studies placement ICASS Placement for Business studies – 108 students placed The student - 35 students received practical Trainings were placed in the following companies:


Actom, EMM and Scaw Metal Group. WIL Placement Students that were placed for Work Integrated Learning are 254 out of a target of 272 (93%) The students were placed in the following companies: P & G, Fedics, Gauteng Department of Education, Fashion Express, Imperial Retail Logistics, Public Works, ABSA, GENRIC Insurance, Old Mutual, Two Mountains Insurance, Sanlam, Metropolitan, Liberty, SAPS, GDE, SOBETHU, FoodBev SETA, Deloitte, Birchwood ad Clicks. Permanent Employment The students were placed in the following companies on permanent basis:

FEDICS (6)

GAUTENG DEPARTMENT OF EDUCATION (22) Training SAMSUNG ELECTRONICS ENGINEERING ACADEMY

(vi) Partnerships and Linkages in 2016

COLLEGE PLAN-WIL FOR LECTURERS

College Plan for Industry-based WIL for Lecturers

PART 1: MANAGEMENT STRATEGY FOR WIL FOR LECTURERS

1. Lecturers‟ WIL objectives for current implementation period

2016

Objectives

1.To expose lecturers to the latest practices in the workplace

2. To create a correlation between the exposure of lecturers and students

3. To enhance curriculum through lecturer placement

4. For lecturers to be better equipped with the latest industry innovations which will subsequently increase the students employability

5. To improve students throughput rate.

2. College targets for lecturers‟ WIL

By programme By campus College target total

Name of programme Target Achieved Percentage

IT 10 3 30%

100

Marketing 10 2 20%

Engineering and Related Design

30 27 90%

Mechatronics 5 10 200%

Electrical Infrastructure and Construction

30 14 47%

Human Resource 5 2 40

Finance, Economic and Accounting

5 4 80%

Hospitality 10 6 60%

TOTAL 100 68 68%


2.2. Annual Performance Achievements

Use the table below to report on achievement of annual performance targets.

STRATEGIC

OBJECTIVES PERFORMANCE INDICATORS

TVET COLLEGE

2016 PLANNED

TARGET

TVET COLLEGE

2016

ACHIEVEMENT

EXPLANATORY

REMARKS

SO 1 To provide quality technical and vocational education and training services and increase academic achievement and success of students

Appropriate teaching and learning support plan developed and implemented (n)

13 13

Appropriate student support plan developed and implemented (n)

12 12

Improved certification rates in: NC(V) L4 N3 & N6 (%)

60% 60% 60%

80% 67% 79%

Throughput rate (%)

21.67% 22% Figures adjusted after targets revised based on actuals for 2015

Funded NC (V) L4 students obtaining qualification within stipulated time (%)

45% 47%

TVET students enrolled in foundation or bridging programmes (n)

3371 3371 The Gauteng Department of Education, enrolled student for Extra School Support Program this figure was not targeted by EWC.

Students completing artisan-related programmes (n)

55 55 Students will complete the program in 2017.

Established centre/s of specialisation (COS) (n)

3 3 EWC has been shortlisted for consideration and desk-top evaluation has been conducted by DHET

SO2 To have adequate infrastructure and systems in place to increase access and provide effective services to students

Headcount enrolment (n)

19 835

20 390

Students accommodated in college accommodation (n)

- - The college does not offer accommodation to students.

Qualifying students obtaining financial assistance (n) Other bursaries: W&R Seta (32)

8250

8100

Students in other bursaries were not planned for, students applied on their own.


STRATEGIC


TVET COLLEGE

2016 PLANNED

TARGET

TVET COLLEGE

2016

ACHIEVEMENT

EXPLANATORY

REMARKS

Department of Military Veterans (DMV) – (6) Gauteng City Region Academy (GCRA) – (46)

SO3 To develop partnerships and maintain good stakeholder relations to increase the number of students who are adequately prepared to enter the labour market or further and higher learning opportunities

Beneficial and functional college partnerships (n)

15 6 6 formal partners

and 9 non-formal

for WBE, WIL and

students

employment

TVET lecturers placed in workplaces for specified

periods (n)

100 68 Most placement

(WIL) were

prioritised to

exiting students

TVET students placed in workplaces/industry for

specified periods for work exposure, experiential

learning and/or certification purposes (n)

1200 1050

Fewer companies responded positively for the planned placement. Students who could not be placed were indeed planned for in 2017

SO4 To ensure continuous business excellence in terms of good corporate governance and effectual management of all college resources as well as information and data

Compliance to governance standards (%)

100% 100%

Compliance to policies and regulations applicable to the

TVET College sector (%) 100% 100%


STRATEGIC


TVET COLLEGE

2016 PLANNED

TARGET

TVET COLLEGE

2016

ACHIEVEMENT

EXPLANATORY

REMARKS

reporting

Obtaining unqualified audits or assessments (n)

4 4

Compliance with national policy of college

examination centres conducting examinations

and assessments (%)

100% 100%

SO5 To monitor and evaluate all college processes in terms of the framework for TVET college performance and report quarterly in this regard

Accurate M&E quarterly reports submitted (n)

4 4

2.3. College Achievement in terms of Expected Outcomes

Use the table below to report on achievement of sub-outcomes 2 and 4 targets.

No Outcome Indicator

2016/17 Planned National Target

TVET College 2016 Planned

Target

TVET College 2016

Achievement

Explanatory Remarks

1.

Headcount enrolments (n) 829 000

NC(V) = 7193 Repo 191 = 12640

Total = 19835

NC (V) = 7660 Repo 191 = 12730

Total = 20390

2.

Certification rates in TVET qualifications (%)

NC(V) L4: 40% N3: 65% N6: 45%

NC(V) L4: 80% N3: 67% N6:79%

NC (V) = 85% N3 = 75% N6 = 85%

3.

Compliance with national policy of college examination centre/s conducting national examinations and assessments (%)

100% 100% 100%

4. Throughput rate (%)

21.67% 22%

5.

Students accommodated in public TVET college accommodation

- -


No Outcome Indicator

2016/17 Planned National Target

TVET College 2016 Planned

Target

TVET College 2016

Achievement

Explanatory Remarks

(n)

6.

Qualifying TVET students obtaining financial assistance (n)

200 000 8250 8100

7.

Funded NC (V) L4 students obtaining qualification within stipulated time (%)

45% 45% 47%

8.

Compliance to governance standards (%)

100% 100% 100%

9.

TVET lecturers placed in workplaces for specified periods (n)

100 68

Most placement (WIL) were prioritised to

exiting students

10.

TVET students placed in workplaces/industry for specified periods for work exposure, experiential learning and/or certification purposes (n)

1200 1050

Fewer companies responded positively for the planned placement.

Students who could not be placed were

indeed planned for in 2017

11.

Students completing artisan-related programmes (n)

31 31

12. DSSP Project 25 25


PART C: GOVERNANCE


1. Constitution of the College Council and Governance Structures 1.1 Names of council chairperson and members as well as their designated functions;

Province TVET College Title Name or Initial

Surname Appointment Designation Specialisation Member Status

End of Term

of Office

Date of Appoint

ment

GP Ekurhuleni West TVETC

Dr Mpho Mohlala Ministerial Appointee Council Member (External) - Section 10(4)(b)

Chairperson Active 4/15/2019 4/15/2014


Mr Christopher Setlhako Ministerial Appointee Council Member (External) - Section 10(4)(b)

Deputy Chairperson

Chair: Financial Committee

Active 4/15/2019 4/15/2014


Prof Wellington Thwala Ministerial Appointee Council Member (External) - Section 10(4)(b)

External Council Member

Academic Board Member

Active 4/15/2019 4/15/2014


Ms Mpolai Liau Ministerial Appointee Council Member (External) - Section 10(4)(b)


Audit & Risk Comm. Member

Active 4/15/2019 4/15/2014


Ms Prelisha Singh Ministerial Appointee External - Section 10(4)(b)


Legal Vacant

Resignation:

12/1/2015

4/15/2014


Mr Samuel Manamela Minister Concurrence (External) - Section 10(6)


Chair: Audit & Risk Active 4/15/2019 8/14/2014


Ms Nandipa Gila Minister Concurrence External - Section 10(6)


Chair: Planning & Resource

HR Advisory Comm. Member

Active 4/15/2019 8/14/2014


Mr MaLlele PeTje Minister Concurrence External - Section 10(6)


Financial Comm. Member

Active 4/15/2019 9/1/2015


Ms Khauhelo Moloko Minister Concurrence External - Section 10(6)


Chair: HR Advisory Active 4/15/2019 Reappointed:

8/14/2014

GP Ekurhuleni West Mr Terrence Naidoo Minister Concurrence External Council Donor Active 4/15/2019 8/14/2014


TVETC External – Donor -Section 10(4)(d)

Member Academic Board Member


Ms Hellen Ntlatleng Minister Concurrence – Section 10(6)

Principal Active Ex-Official


Mr Mawethu Mpayepheli Minister Concurrence – Section 10(4)(d)

Internal staff member

Lecturer Representative Active 4/15/2019 7/1/2014


Mr Peter Kgorutle Minister Concurrence – Section 10(4)(d)


Support Staff Representative

Active 4/15/2019 7/1/2014


Ms Priscilla Lehoko Minister Concurrence – Section 10(4)(d)


Academic Board Representative

Active 4/15/2019 7/1/2014


Mr Tshepo Lekhethe Minister Concurrence – Section 10(4)(d)

SRC Council Member

Student Representative (1)

Active 4/1/2016 4/1/2015


Mr Thabane Buthelezi Minister Concurrence –

Section 10(4)(d)

SRC Council Member

Student Representative (2)

Active 4/1/2016 4/1/2015

Total: 16


2. College Performance in terms of Strategic Objectives

o Number of meetings held and for what reason;

2016 *Asterisk will indicate, which members only started, on the Council, or on a Council Committee, in the middle of the year, or later in the year, as well as members, who had left, during the course of the year. (i) MEMBERS OF THE COLLEGE COUNCIL AND MEETINGS HELD

MEMBER POSITION MEETINGS HELD

MEETINGS ATTENDED

Dr. Mpho Mohlala Chairperson 4 4

Mr. Chris Setlhako Vice-Chairperson 4 3

Mr. Sam Manamela Member 4 4

Mr. Terrence Naidoo Member 4 3

Prof. Wellington Thwala Member 4 4

Ms Khau Moloko Member 4 2

Ms Nandipa Gila Member 4 3

Ms Mpolai Liau Member 4 2

Mr. MaLlele PeTje Member 4 4

Ms Hellen Ntlatleng Principal 4 4

Ms Priscilla Lehoko Member 4 4

Mr Mawethu Mpayipheli CS – Educator Staff Representative

4 2

Mr Peter Kgorutle PS – Educator Staff Representative

4 4

Ms Ntombizodwa Dangazele Act Deputy Principal and Secretary

4 4

Ms Magda Marais Resigned: June 2016*

Deputy Director 4 2

Mr Killian Nyakusendwa From September 2016*

Act Deputy Director 4 2

Mr Tshepo Lekhethe SRC Representative 4 4

Mr Thabane Buthelezi SRC Representative 4 3

Ms Nthabiseng Sekhobane Scribe 4 4

(ii) MEMBERS OF THE ACADEMIC BOARD AND MEETINGS HELD

MEMBER POSITION MEETINGS HELD

MEETINGS ATTENDED

Ms Hellen Ntlatleng Principal and Chairperson 3 3

Prof. Wellington Thwala College Council Representative

3 3

Mr. Terrence Naidoo College Council Representative

3 3


Deputy Director 3 1

Mr Killian Nyakusendwa From September 2016*


Ms Ntombizodwa Dangazele Deputy Principal: Corporate Services

3 3

Ms Priscilla Lehoko Academic Board Representative, on the College Council

3 3

Mr. Raymond Dladla Partnerships and Linkages 3 3

Mr. Frank Duarté Estate Manager 3 3

Mr. Robert Ehlers Quality Manager 3 3


Mr. Peter Kgorutle CS – Educator Staff Representative

3 3

Mr. Mawethu Mpayipheli PS – Educator Staff Representative

3 1

Mr. David Muleele Marketing Manager 3 2

Ms Corrie Müller Resigned: August 2016

Student Support Services Manager

3 1

Mr. Pule Ntise HoS: Business Studies 3 2

Ms Elsabe Smit HoS: Engineering Studies 3 3

Ms Nomazwe Nzima Academic Affairs Manager 3 3

Ms Gugu Matthews Business Unit Manager 3 3

Mr. Solomon Radebe NSF Co-ordinator 3 3

Mr. Khutso Ramontja CfE Director 3 3

Mr. Kobus Steenkamp BMS Administrator 3 3

Ms Rosa Nöffke Alberton Campus Manager 3 3

Ms Bennita Sisi Boksburg Campus Manager 3 3

Mr. Peter Mudau Act Germiston Campus Manager

3 3

Ms Sandra Mavhungu Kathorus Campus Manager 3 2

Mr. Wellington Mudau Act Kempton Campus Manager

3 3

Ms Annelie du Plessis Resigned: June 2016*

Tembisa Campus Manager 3

Ms Amanda Ehlers HoD: Alberton 3 3

Mr. Madimetja Chukudu HoD: Boksburg 3 3

Ms Phenicia Qithi HoD: Kempton 3 1

Ms Connie Maleka From September 2016*

HoD: Tembisa Act Tembisa Campus Manager

3 3

Mr. Tshepo Lekhethe SRC Representative 3 1

Mr. Thabane Buthelezi SRC Representative 3 3


(iii) MEMBERS OF THE FINANCE COMMITTEE AND MEETINGS HELD

MEMBER

POSITION MEETINGS HELD

MEETINGS ATTENDED

Mr. Chris Setlhako Chairperson (College Council)

3 2



Deputy Director 3 1

Mr. Killian Nyakusendwa From September 2016*


Mr. MaLlele PeTje From September 2015*

College Council 3 3

Ms Priscilla Lehoko Act Deputy Principal 3 3

Ms Ntombizodwa Dangazele Deputy Principal and Secretary

3 3

Mr. Peter Kgorutle Assistant Director: SCM

3 2

Mr. Patrick Mamorobela Management Accounting 3 2



(iv) MEMBERS OF THE HR ADVISORY COMMITTEE AND MEETINGS HELD

MEMBER POSITION MEETINGS HELD MEETINGS ATTENDED

Ms Khau Moloko Chairperson (College Council)

4 3

Ms Nandipa Gila College Council 4 4



Deputy Director 4 2

Mr. Killian Nyakusendwa From August 2016*



4 3


Ms Hlengiwe Tsotetsi Human Resource Manager

4 4


(v) MEMBERS OF THE AUDIT COMMITTEE AND MEETINGS HELD

MEMBER POSITION MEETINGS HELD MEETINGS ATTENDED

Mr. Samuel Manamela Chairperson (College Council)

4 4

Ms Mpolai Liau College Council 4 3



Deputy Director 4 2




4 4

Ms Coby van Antwerpen External Auditor 4 3


(vi) MEMBERS OF THE PLANNING AND RESOURCE COMMITTEE AND MEETINGS HELD

MEMBER

POSITION MEETINGS HELD MEETINGS ATTENDED

Ms Nandipa Gila Chairperson (College Council)

3 3

Dr. Mpho Mohlala College Council 3 3



Deputy Director 3 1




3 3


Mr. Frank Duarté Estate Manager 3 2

Mr. Robert Ehlers Quality Manager 3 3



3. RISK MANAGEMENT Legislative Provisions In terms of Section 13 of the Continuing Education and Training Act 16 of 2016, the Principal of a public college is responsible for the management and administration of the college. Section 25(1) of CET Act, states that the council of a public college must, in the manner determined by the Minister of Higher Education implement internal audit and risk management systems which are not inferior to the standards contained in the Public Finance Management Act, 1999 (Act No. 1 of 1999). Risk Management is about managing a potential inability by the college to fulfil the requirements of the Constitution. It is for this reason that the Constitution of the Republic of South Africa is the fundamental foundation for risk management. BACKGROUND Organisations operate in environments where factors such as technology, regulations, restructuring, changing service delivery requirements and political influence create uncertainty. Uncertainty arises from an inability to precisely determine the likelihood that potential events will occur and the associated impact. Risk management forms a critical part of an organisation‟s strategic management. It is the process by which an organisation addresses the risks intertwined in the activities with an objective of achieving sustained benefit within each activity and across the range of its activities. The college‟s council has established an Audit and Risk Committee which is responsible for risk management, monitoring and reporting. The Audit and Risk Management Committee is Governed by an Audit and Risk Management Committee Charter. Risk register is in place and is reviewed on a quarterly basis. The Chief Financial Officer is responsible for day to day management of risk and reports to the Audit and Risk Committee that meets on quarterly basis. Risk Management is a standing item in the Audit Committee Agenda in all its meetings and reports to council on quarterly basis. All reports on risk management are also presented to executive management committee and all other management committees. The following are the top 10 significant risks that are facing the college derived from the Department of Higher Education and Training strategic plan. The college is fully aware of the root causes and has been able to put in place mitigating strategies within the operational plans for 2016 financial year.


No

Strategic

Objective

Risk Causal Factor II IL

IR Mitigating Controls RI

RL

RR

Action Plan Responsible

person Progress

Due date

1 2,3,5 Poor retention and attraction of key personnel

Organisational structure not based on operational needs

Slow filing of posts (Department is in control)

Job evaluation not being performed/exist

Retirement

Union take over

Temporary positions vs permanent positions

5 4 20

Appointment beyond constraints (outside the Educators Act)

Key post filled by acting personnel

Posts created that would not necessarily exist to ensure business continuity.

Succession Planning

Regulate union‟s involvement

Empowerment and development of middle management

3 3 9

Establishment of remuneration committee and remuneration policy

Benchmarking of DHET salaries

Possible organisational re-design to be performed, which would lead to operations being appropriately capacitated

Skills audits to be performed

Accounting Officer

A service provider was appointed in October 2016 to perform detailed skills audit for all the college staff.

All primary staff salaries are being administered by DHET except for the project staff salaries which are benchmarked per project specifications.

Organisational structure was redesigned with additional posts identified and communicated to DHET.

31-Dec-16


No

Strategic

Objective



RL

RR


person Progress

Due date

2 2,3,4,5 Disruption of teaching and learning

Student unrest

Lack of textbooks

Limited funding/ bursaries

Union disruptions

Exam results not being released on time (if ever they are released)

Lecturer turnover (delays in filing in positions)

Duration to appointment personnel

Student Absenteeism

Fiscal constraints

5 5 25 Student representatives (SRC)

Text book purchase cycle (Prior to the beginning of the year)

Purchase on projections

Funded 56% by DHET

Regulate union involvement

Policy in place (Management Plan)

Protocol of monitoring student absenteeism

3 3 9 Appropriate consultative processes between management and SRC

Appropriate safety measure to be put in place

Filling of vacancies with appropriate suitably qualified lecturers

Regulate union involvement - through appropriate consultative processes

Implementation of policy

Accounting Officer

Regular meetings were conducted with SRC and Management during 2016.

The college has an established relationship with SAPS and access private security and intelligence where and when necessary

In addition to recruitment adverts for key lecturers& admin staff, recruitment of temporary lecturers has been decentralised to campuses for prompt response.

In terms of union involvement, the college has a full time Labour relations Officer who is directly supported by DHET.

There is consistent implementation of policy where action is taken when necessary

Immediate


No

Strategic

Objective



RL

RR


person Progress

Due date

3 2,3,5 Limited/shortage in Funding from external parties.

Drop in student number

Fiscal constraints resulting in reduced budget allocation

Change in processes by DHET

Poor revenue collection

Over enrolment ‒ Failure to get business from outside (Seta)

Completion of NSFAS forms and supporting document to submit to NSFAS

Government takes funding to fund other projects

Student retention rate

5 5 25

NSFAS

Enrolment targets

Applications to Seta

Funded project management

Other sources of revenue

Collection of revenue (debtor‟s control)

Budgetary control

Reserves

Reduce in infrastructure projects

2 2 4

Establish an appropriate marketing strategy for EWC to make it the TVET of choice

Write off long outstanding debtors and implement a vigorous debtor collection process

Consultations and discussions with SETA's

Development of a sponsorship programme where private sector sponsor certain products or processes in return for advertisement opportunities or partnerships.

Develop an appropriate infrastructure development plan in line with the budget and operational needs of the TVET

Accounting Officer

College Marketing strategy being implemented;

Business Lunch with partners e.g business lunch held on 20th of October 2016

Partnerships with various SETAs (ETDSETA, W&RSETA, and INSETA etc.).

Application of the Discretionary grant

Long outstanding Student debtors for 2002-2012 were approved by council and written off in 2016

Further recovery actions will be taken on the bad debts written off.

Sponsorship programs

A group of companies assisted. a) Ford Motor Africa donated 3 Ford Ranger Bakkies for training

b) Chrysler donated various vehicle components for training

Application for the

Sep-16


No

Strategic

Objective



RL

RR


person Progress

Due date

Discretionary grants Infrastructure development plan is in place and monitored by the Estate Manager.

4 2,5 Insufficient IT support and lack of IT infrastructure

poor IT governance

Lack of qualified IT staff (system engineers)

Lack of disaster recovery plan

Dependent on 3rd party

Number of IT programmes

Lack of monitoring and accountability for the IT department

5 5 25

Implementation of 27001 ISMS

IT steering committee

Re-working on IT infrastructure

Outsource independent IT advisory on infrastructure

Recruitment of qualified staff

Training for current staff

5 3 15

Long term planning (ITC strategy)

Replacement of IT Infrastructure - Long term planning

Update and formalise IT policies and procedures including implementing Disaster Recovery Management

BCP/DRP)

Integrated planning

Update and formalise IT policies and procedures

Participate IT forums (capacity building and continuous

development of IT personnel)

Leverage on government wide technology

Embedding communication through social media

Accounting Officer

ICT strategy in place TENET Project underpinning all IT infrastructure was completed by 31 December 2016.

IT policies were developed interalia

a) Disaster recovery policy

b) ISMS Committee in place (oversight committee)

The college IT staff participated in 3 IT forums including

DHET IT forum in July 2016

IT Technical forum by ADAPT IT September 2016 &

Technical forum, BMS meeting by CINOP in October 2016

Integration between IT and Government wide technology through capitalising on the TENET project.

Dec-16


No

Strategic

Objective



RL

RR


person Progress

Due date

- The college website fully functional and updated regularly

5 1,2,3 High failure rate

Disruption in teaching and learning

Appointment of unqualified and underqualified lecturers

Poor attendance by students

Uncommitted lecturers

Lecturer absents

Student unrest

High turnover

Turn around time

5 5 25

to fill post

Late release of exam results

Student retention rate

Poor quality of exam paper

assessment

Lack of monitoring of teaching and learning

2 2 4

Monitoring of teaching and learning

Evaluation of lecturer's performance

Strict recruitment processes to appoint qualified lecturers

Protocol in place for following and monitoring of student absenteeism

Campus Management procedures to monitor lecturer's absenteeism

Career guidance, interventions and follow up

students that dropped out

Internal papers that are monitored

Moderating the exam papers Training Moderators

Implement and management change management processes

Accounting Officer

Training of moderators and facilitators was conducted during the year.

Dec-16


No

Strategic

Objective



RL

RR


person Progress

Due date

6 2.4 Poor attraction and retention of students

Poor branding ‒ Poor marketing ‒ Affordability (parents are unemployed) ‒ Quality of teaching and learning ‒ Poor Location of campus ‒ Quality of infrastructure ‒ Poor relationship with communities

5 5 25

Career guidance

Student Placements

Annual surveys show that word of mouth attracts students

Strong brand/reputation

On-going infrastructure projects

Advertising campaigns

Community relationships

2 2 4

‒ Establish an appropriate marketing strategy for EWC to make it the TVET of choice ‒ Write off long outstanding debtors and implement a vigorous debtor collection process ‒ Consultations and discussions with SETA's ‒ Development of a sponsorship programme where private sector sponsor certain products or processes in return for advertisement opportunities or partnerships ‒ Develop an appropriate infrastructure development plan in line with the budget and operational needs of the TVET

Accounting Officer

Community outreach programs to ward councillors, churches & schools we conducted by marketing in August 2016.

Social responsibilites includes; - Rennovation of a child head family house in Tembisa on Mandela day. -Donating sanitary towels and diors to girl child during women's month - Doek Day held during the month of August. - Cultural day in September. - Family day function conducted on 22 October 2016 - Year end function for all employees of the college including executive management, broad management & staff.

Sept 2016


No

Strategic

Objective



RL

RR


person Progress

Due date

7 1,4 Non-compliance with laws and regulations

Changes in laws and regulations

Political interference

Changes in directives given ‒

4 4 16

Change management processes.

Operational policies

Communication

Quality management systems in place

Adherence to local legislation

Assurance providers

2 2 4

Update and implement the SCM policy and SOP's

Year-end review of tenders approved during the year

Implement demand planning

Establishment of specification committee, evaluation committee Implement a training program - specialised for SCM and general for line management

Quarterly SCM reporting and review

Implementation of disciplinary processes in terms

of accountability (PFMA Section 82 & Education Act)

Chief Financial Officer

SCM policy was reviewed in Finance Document review session conducted in September 2016.

Year-end review of all tenders approved during the year conducted in November 2016 and monthly report on all tenders regularly presented

Demand planning to be implemented in the planning of 2017 budgets and incorporated through use of procurement plans per each key performance area, campus, department and/or programmes

Specification committee and Evaluation committee is in place

Training was conducted for the Bid Evaluation Committee in 2016 & planned from the Bid Adjudication Committee in February 2017. Disciplinary processes were followed where

31-Dec-16


No

Strategic

Objective



RL

RR


person Progress

Due date

and when necessary.

There is continuous monitoring and follow up of the hotline reports used by the college

There is also continuous monitoring and implementation of the Fraud Prevention Plan.

8 2,5 Fraud and corruption

Lack of adequate or effective SCM processes

Loss of petty cash

Unethical behaviour

Poor control environment

Fraudulent appointment

5 4 20

Fraud prevention plan

Supply chain management policies and procedure

Code of conduct in place

Whistle blowers hotline

5 2 10

Continuous monitoring of the hotline reports

Implementation of the Fraud

Prevention Plan

Continuous training on the code of conduct and on ethics.

Accounting Officer

There is contionous monitoring and follow up of the hotline reports used by the college.

There is also continous monitoring training and implementation of the Fraud Prevention Plan.

31-Jul-16

9 4 Transversal audit findings at DHET could negatively impact the outcome of the

Transfer from GDE to DHET poorly managed transfer of information

5 5 25

Reconciliations performed between PERSAL and BAS

Reconciliations performed between TVET information and DHET information

Request of actual payslips for certain individuals that cannot be identified

5 4 20

SACPO to intervene in leading discussion with DHET on the matter

Accounting Officer

Engagement conducted on management fees and reconciliations were submitted and reported to DHET.

31-Aug- 16


No

Strategic

Objective



RL

RR


person Progress

Due date

regularity audit at the TVET

on the PERSAL report from DHET

10 Non-functional government structures

Insufficient capacity within DHET to appropriately assist TVET colleges

Insufficient consultation between DHET and TVET College to manage relationships and deliverables appropriately Inappropriate / ill-informed instructions from DHET to colleges and changes of instructions shortly after implementation commenced

5 5 25

5 4 20

Appropriate stakeholder engagements to be implemented and maintained Appropriate communication regarding capacity matters between DHET and EWC TVET council

Council Several meetings were conducted with the Minister, DDG and a proposal was tabled to meet at least 4 times a year.

Immediate

Quartely


4. REPORTS BY COMMITTEES OF COUNCIL 4.1 FINANCIAL COMMITTEE Key Activities and Objectives of the Finance Department The objective of the finance department is to improve debt management and the overall financial efficiency of the college. The finance department is responsible for budgeting and financial planning, reporting, internal controls and accountability policies and administering audits and investments. Internal Controls and Accountability Policies The finance department is responsible for continuously developing and implementing accountability policies for the college as follows;

Create, approve, and update (as necessary) policies that help ensure the assets of the organization are protected.

Ensure policies and procedures for financial transactions are documented in a manual, and the manual is reviewed annually, and updated as necessary.

Ensure approved financial policies and procedures are being followed and implemented. To achieve the above the following new policies were developed and approved by council in 2016 financial year;

- Gifts, donation & Sponsorship policy - Cash Management Policy - Petty cash policy - Inventory management policy

The following policies were also reviewed during the financial period under review to be in line with prevailing circumstances;

- Financial policy - Supply Chain Management Policy

Debt Collection The college recovered R 86 850 from collections from the debt collector (Vericred) on student debtors handed over. Assets Written Off During the 2016 financial year, the finance committee recommended for council approval to write off assets with a carrying value of R385 974. The assets written off were identified from an extensive exercise of physical verification and conditional assessment performed during the period under review, results of which were subsequently approved by the college council for write off as at the end of 2016 financial year. Bad Debts Written Off The college council approved a total of R10 669 438 for long outstanding students debtors that were irrecoverable during the year under review.


Outstanding Debtors – 2016 As at 31 December 2016, a total of R43 088 924 was outstanding by students of which R 19 037 068 related to 2016 student debtors. Total tuition fees of R 96 341 330 was generated as income for the year ended 31 December 2016 of which 20% was still outstanding and owed by students at the reporting date. An amount of R15 602 661 was received from students relating to tuition fees for the 2016 financial year. A total of R53 621 768 was received from National Skills Funding Scheme (NSFAS) for 2016 in respect of Report 191 bursaries 2016 NCV bursaries of R2 377 891 and R51 242 871 respectively. Income and Expenditure Up To 31 December 2016 2016 2015 Income Programme Funding R 44 628 000 R 41 918 125 PERSAL income R 174 654 284 R 113 176 054 Total State Tranches R 219 282 284 R 155 094 179 College Fees R 96 341 330 R 34 343 239 Student Financial aid R 0 R 47 717 264 Fee for service income R 7 429 087 R 12 040 580 Other Private Funding R 31 969 452 R 19 446 034 Total income generated R 355 022 153 R 268 641 295 Expenditure Compensation R 174 209 121 R 156 226 694 Goods and Services R 98 041 694 R 93 270 669 Capital expenditure R 50 198 755 R 15 207 193 Total expenditure R 322 449 570 R 264 704 556 Balances Bank R 15 015 927 R 12 745 407 Investments R 234 663 833 R 240 750 441 Debtors Students R 43 088 924 R 25 240 178 Other R 8 167 215 R 5 141 172 Creditors R 34 449 316 R 30 171 433 Subsidies 2015/2016 Subsidy

The expenditure for 2015/16 subsidies as at 31 December 2016 as follows; Expenditure on Goods and Services R 41 482 730 Commitments R 1 036 270

Total Allocation R 42 519 000 Approval was granted by the College Council to close the Call Account for the2015/2016 Subsidy upon exhausting the budget.

2016/2017 Subsidy

The expenditure for 2016/17 subsidies as at 31 December 2016 as follows;


Expenditure on Goods and Services R 37 466 622 Commitments R 4 703 413 Available budget R 2 457 965

Total budget allocation R 44 628 000 Cash Flow 31 December 2016 A negative cash flow movement of R 3 538 701 was recorded for the year ended 31 December 2016. Investments Total Reserves R 234 663 833 R 240 750 441 Operation funds R 15 015 927 R 12 745 407 Total cash and cash equivalents R 249 679 760 R 253 495 849 CET College funds amounted to R 1 436 668 R 2 230 736 Key Objectives of the Financial Committee The role of the finance committee is primarily to provide financial oversight for the college. Typical task areas include budgeting and financial planning, financial reporting, and the creation and monitoring of internal controls and accountability policies. An outline of responsibilities appears below.

Take overall responsibility for developing financial policies and obtaining approval.

Oversee and approve college budgetary submissions, ensuring that the outputs to be delivered are specified and consistent with the desired outcomes.

Ensure that the necessary steps are taken to instigate any financial related investigations into financial misconduct or maladministration.

Ensure that an appropriate management information system is established to provide prompt and accurate financial information.

Consider the reports generated by the Deputy Principal: Chief Financial Officer. These reports must indicate any under collection or shortfall in budgeted income (as this may impact on the college‟s ability to spend and therefore deliver services), as well as any overspending (this would eventually become unauthorised expenditure). The report must also project expenditure and revenue for the remainder of the year, and show any remedial action proposed by the accounting officer.

Ensure that there is compliance with policies, no deficit spending and long-term commitments don‟t exceed projected revenues.

The Finance Committee is in place and functions effectively as required in terms of the Treasury

Regulations and the CET. The Finance Committee held three meetings during the reporting period.

Attendee profile of Financial Committee meetings

NAME QUALIFICATIONS INTERNAL/EXTENR

AL

DATE

APPOINTED

NO OF

MEETINGS

ATTENDED

Mr C Setlhako

(Chairperson)

- LLB

External 15/04/2014 2

Mr M Petje -Master of Philosophy External 01/09/2015 3

Ms HM Ntlatleng -Bachelor of Arts Internal Ex-Officio 3


(Ex-Officio)

Ms P Lehoko -Bachelor of Science Internal 01/07/2014 3

4.2 AUDIT AND RISK COMMITTEE The Audit and Risk Committee reports on the following: Key activities and objectives of Internal Audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve the college operations. It assists the college accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

The Internal Audit Unit operates with skilled personnel and functions as required by the Treasury Regulations and the Continuing Education and Training Act (CET). An audit plan was developed independent from the risk assessment conducted in the College and approved by the Audit Committee and college council. The Internal Audit function was outsourced to a Service Provider on a three year contract ending 31 July 2018. The 3 year rotational internal audit plan is closely monitored and amended according to prevailing control risk. During the year under review, internal audit engagements were performed in accordance with the audit plan. The main activities of Internal Audit are to:

Compile three year rolling strategic and annual audit plans

Performing internal audits on the following systems – Risk management system – Control systems – Governance systems

Report to management and the Audit Committee Audit work The implementation of the internal audit plan commenced in 2015 financial year with the following activities reported in 2015;

Financial and asset management review

Supply chain management

Human resources review.

Review of ERM framework, operational risk register and general risk management

Facilitation of strategic risk assessment The following activities per audit plan were completed in 2016:

- Campus operational audits - Review of audit action plan 2015 - Governance review audit - Asset management review

Appointment of external auditors The Auditor General of South Africa took over its mandate as outlined in chapter 9 (sections 181 & 188) of the Constitution of the Republic of South Africa and for audit of all Technical and Vocational Colleges and commenced audit of the college for the year under review.

https://en.wikipedia.org/wiki/Assurance_services

https://en.wikipedia.org/wiki/Consultant

https://en.wikipedia.org/wiki/Effectiveness

https://en.wikipedia.org/wiki/Enterprise_risk_management

https://en.wikipedia.org/wiki/Enterprise_risk_management

https://en.wikipedia.org/wiki/Internal_control

https://en.wikipedia.org/wiki/Corporate_governance


Key activities and objectives of the Audit Committee The objective of the Audit Committee is to assist the Accounting Officer in fulfilling oversight responsibilities regarding the financial reporting process, the system of internal control and management of risks, the audit process and the monitoring of compliance with laws and regulations, as well as the College‟s own Code of Conduct. The main activities are;

To advise the council on the effectiveness of the college‟s whole system of internal control, including controls for securing economy, efficiency and effectiveness (value for money).

To advise the council on the appointment, reappointment, dismissal and remuneration of the external auditor and the internal audit service.

To advise the council on the scope and objectives of the work of the external auditor and internal audit service.

To ensure co-ordination between the internal audit service and external auditor.

To consider and advise the council on the audit needs and assessment and strategic and annual internal audit plans for the internal audit service.

To advise the council on internal audit assignment reports and annual reports and on control issues included in the external auditor‟s reports and management‟s response to these.

To consider and advise the council on relevant reports and management‟s response to these.

To monitor, within an agreed time scale, the implementation of agreed recommendations relating to internal audit reports and external auditors‟ reports.

To establish, in conjunction with college management, relevant performance measures and indicators and to monitor the effectiveness of the internal audit service and external auditor through these measures and indicators.

To provide an annual report for the council which includes the committee‟s advice on the effectiveness of the college‟s system of internal control incorporating any significant matters arising from the work of the internal audit service and external auditor.

The Audit Committee is in place and function effectively as required in terms of the Treasury Regulations and the CET. The Audit Committee held four meetings during the reporting period. Attendee profile of Audit Committee meetings:

NAME QUALIFICATIONS INTERNAL/EXTENRAL

DATE APPOINTED

NO OF MEETINGS ATTENDED

Mr S Manamela

(Chairperson)

- BCOM (Hons) in Business

Management

-Bachelor of Business Administration

(BBA) in Business Management

External 14/08/2014 4

Ms M Liau

BCOM Accounting Honours

External 15/04/2014 3

Ms HM Ntlatleng

(Ex-Officio)

-Bachelor of Arts

International Leadership Programme

(Post Degree)

External Ex-Officio 4


4.3 HUMAN RESOURCE ADVISORY COMMITTEE The Human Resource Advisory Committee reports on the following:

CS EDUCATORS

POST

LEVEL

AM

PL1 145

PL2 15

PL3 7

PL4-5 1

Total 168 134 0 3 5 2 25 52

3 0 4 4 8

20

4 0 0 0 0

198 191 389

7 0 0 0 0 2 4 9 11

317

12 0 0 2 0 6 9 23 21 44

111 0 3 3 2 14 39 162 155

MALE FEMALE MALE TOTOAL TOTAL

AF IM IF CM CF WM WF Male Female

0

100

200

300

400

500

AM IM CM WM TOTALMALE

TOTAL

PL 1

PL 2

PL 3

PL 4-5

TOTAL

23%

21%

1%

4% 0% 0% 1% 0%

24%

26%

CS EDUCATORS

African M African F White M White F Indian M

Indian F Coloured M Coloured F Total M Total F


PS EDUCTORS

SAL LEVEL TOTAL

SL1 -3 42

SL 4-6 80

SL 7-8 26

SL 9-10 6

SL 11-12 1

13+ 1

Total 156

FemaleMaleWF

52284

31110

240

2150

010

100

0 4 4 49 107

0 0

45 103 0 0 0

0 0

1 0 0 0 0

0 0

0 1 0 0 0

0 0

4 2 0 0 0

0 4

5 21 0 0 0

AM AF IM IF CM

0 0

24 48 0 0 0

CF WM

11 31 0 0 0

MALE FEMALE MALE TOTAL

0

10

20

30

40

50

60

70

80

AM IM CM WM MALE TOTAL

SL1-3

SL 4-6

SL 7-8

SL 9-10

SL 11-12

SL 13+

TOTAL

African M 29%

African F 15%

White M 0%

White F 6% Indian M

0%

Indian F 0%

Coloured M 0%

Coloured F 0%

Total M 29%

Total F 21%

PUBLIC SERVANTS


Total number of employees

Summary Per Salary Levels For PERSAL

Salary level 01 30

Salary level 02 4

Salary level 03 9

Salary level 04 14

Salary level 05 117

Salary level 06 52

Salary level 07 194

Salary level 08 57

Salary level 09 53

Salary level 10 7

Salary level 11 7

Salary level 12 0

Salary level 13 1

TOTAL PERSAL PAID OFFICIALS 545

New appointments

Position Total Number

Lecturers 27

Educational Psychologist 1

Facilitator 2

Admin Clerks 12

Student Trainees 7

Leave Dispensation

SUMMARY : LEAVE PER SALARY LEVEL

SALARY AFRICAN AFRICAN COLOUREDCOLOUREDINDIAN INDIAN WHITE WHITE DAYS DAYS DAYS TOTAL TOTAL COST

LEVEL MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE TOTAL EMPLOYEESAVERAGE AVERAGE

------- ------ ------ ------- ------- ------ ------ ------ ------ ------- --------- ------- ------- --------------

1 10 3 0 0 0 0 0 0 40 13 308 308 16594.93

3 0 2 0 0 0 0 0 0 4 2 200 200 2261.49

4 4 0 0 0 0 0 0 0 10 4 250 250 6261.3

5 6 21 0 0 0 0 1 3 113 31 365 365 79959.03

6 1 3 0 0 0 0 0 0 15 4 375 375 15326

7 5 12 0 1 0 0 0 2 73 20 365 365 75465.84

8 2 1 0 0 0 0 0 0 23 3 767 767 34877.73

9 1 0 0 0 0 0 0 1 2 2 100 100 3514.11

------ ------ ------ ------ ------ ------ ------ ------ ------- --------- ------- ------- ---------------

29 42 0 1 0 0 1 6 280 79 354 354 234260.4

====== ====== ====== ====== ====== ====== ====== ====== ======= ================ =========


Labour Relations Cases

Cases received - 20 Cases in progress - 7 Cases closed – 13

Employee wellness

Activities held:

No Dates Programme

1 04 February 2016 World Cancer Day

2 24 March 2016 World TB Day

3 22 April 2016 College Aids Day

4 13 May 2016 No Tobacco Day

5 06 June 2016 Blood Donor

6 10 September 2016 Family Day

7 19-21 September 2016 Sight / Eye Care Awareness

8 October 2016 Breast Cancer Awareness Month

9 01 December 2016 World Aids Day

EWC Family Day – September 2016


Human Resource Development Summary of Trainings Held in 2016:

Training attended by Lecturers in 2016

TRAINING NEED TARGET GROUP NO. PROVIDER VENUE DATE

Mathematics L2-4 Mechanical Lecturers 24 External Service Provider Service Provider Venue March Holidays

Fluid Mechanics /N6 Mechanical Lecturers 10 External Service Provider Germiston March Holidays

Wheels Alignment Mechanical Lecturers 12 External Service Provider Germiston March Holidays

Industrial Electronics /N4 Light Current Lecturers 10 External Service Provider Germiston March Holidays

Entrepreneurship Business Lectures 12 External Service Provider Germiston June Holidays

Information Technology NC(V) Lecturers 24 External Service Provider Germiston June Holidays

Strength of Materials and

Structures

Mechanical Lecturers 25 External Service Provider Service Provider Venue June Holidays

Mechanical Drawing and

Structure

Mechanical Lecturers 4 External Service Provider Service Provider Venue June Holidays

PLC Electronics Lectures 10 External Service Provider Service Provider Venue June Holidays

Pneumatic Mechatronics Lectures External Service Provider Service Provider Venue June Holidays

Hydraulics Mechanical Lecturers 10 External Service Provider Service Provider Venue September Holidays

Pastel Business Lecturers 30 External Service Provider Service Provider Venue September Holidays

Wed Design Business Lecturers 12 External Service Provider Service Provider Venue September Holidays

SQL Database Business Lecturers 12 External Service Provider Service Provider Venue September Holidays

Vehicle Diagnostic Mechanical Lecturers External Service Provider September Holidays

Transmission and

Engines

Mechanical Lecturers External Service Provider September Holidays

Artisan Engineering Lecturers 5 External Service Provider Service Provider Venue September Holidays


Training attended by Support Staff in 2016

Training need Target group No. Provider Venue Date

Leadership and Management

Broad Management 26 Wits Business School Service Provider Venue Mar-16

Planning 10 External Service Provider Service Provider Venue Mar-16

Advanced Minutes Taking

Executive PA‟s 7 External Service Provider Service Provider Venue Apr-16

Customer Service Admin 28 External Service Provider Service Provider Venue Apr-16

Record Keeping Admin 6 External Service Provider Service Provider Venue Apr-16

Management of Assets Staff that deal with assets

7 External Service Provider Service Provider Venue May-16

Report Writing 7 External Service Provider Service Provider Venue May-16

Project Management Marketing Staff 3 External Service Provider Service Provider Venue Jun-16

Debt Collection Debt Collection Staff 4 External Service Provider Service Provider Venue Jun-16

Batho Pele External Service Provider Service Provider Venue Jun-16

Mentoring SSS Staff Members 18 External Service Provider Service Provider Venue Jul-16

Counselling Skills EAP Committee 10 External Service Provider Service Provider Venue Jul-16

Lawn Movers Elementary Workers 7 External Service Provider Service Provider Venue Aug-16

Welding Elementary Workers 4 External Service Provider Service Provider Venue Aug-16

Fire Marshal OHS Committee 12 External Service Provider Service Provider Venue Aug-16

Carpentry Elementary Workers 6 External Service Provider Service Provider Venue Aug-16

Plumbing Elementary Workers 6 External Service Provider Service Provider Venue Aug-16

Mechanical Elementary Workers 6 External Service Provider Service Provider Venue Sep-16

Painting Elementary Workers 6 External Service Provider Service Provider Venue Sep-16

Electrical Elementary Workers 6 External Service Provider Service Provider Venue Sep-16

First Aid Level 3 OHS Committee 12 External Service Provider Service Provider Venue Oct-16

Incident Investigation OHS Committee 20 External Service Provider Service Provider Venue Oct-16

OHS Representative Training

OHS Committee 25 External Service Provider Service Provider Venue Oct-16

Fire Fighting Training OHS Committee 30 External Service Provider Service Provider Venue Oct-16

Basic Computer Skills General Workers 15 External Service Provider Service Provider Venue Oct-16

Communication Skills Admin 20 External Service Provider Service Provider Venue Nov-16

ICT Technicians 8 External Service Provider Service Provider Venue Nov-16

ROI (Return on Investment )

Training Committee Members

15 External Service Provider Service Provider Venue Nov-16


PLANNING AND RESOURCE COMMITTEE The Planning and Resource Committee reports on the followings:

- Infrastructure New Buildings, Refurbishment and Maintenance

New Corporate Centre – Kgorong Auditorium

Quality Management

The Quality Management System was externally audited by SABS in 2015 in the following areas: ISO: 9001of 2008 (Quality) Kathorus Campus, Kempton campus and Corporate Centre


It went well as the college passed the audits with only minor findings that were raised. The auditors also expressed their satisfaction with our QMS and made it clear we are improving in this area. In terms of Environmental Management 2016 was the year we introduced Impacts and Aspect Registers at all Campuses for the first time together with Waste Management Protocol. The Annual Management Review took place 24, 25 and 26 October 2016 and all systems were reviewed in terms of functionality, strengths and also areas earmarked for improvement. The 27001 (Information Security Management System) and 14001 Standards (Environmental Management System) were also reviewed in this Management Review. After the three days the Principal signed the STATEMENT OF COMPLIANCE of the Quality Management System. All presentations and information of this review is available on the QMS, INSIDEEWC.

Strategic and Operational Plans On the 24 – 26 August 2015, the College Council and Line Managers embarked on the Strategic Planning Session. At each and every annual session a theme is adopted to align with strategic objectives. The 2016 theme is “IF IT IS NOT VISIBLE, IT IS NOT MEASURABLE”. The main focus was on the following areas: Programmes To deliver responsive FET programmes with opportunities for workplace exposure. Administration To provide system administration support. Finance To minimize financial risk by establishing effective and efficient systems in line with PFMA and GRAP. Human Resources To ensure and sustain a motivated, competent and adequately skilled workforce. Infrastructure To develop and maintain infrastructure aligned to responsive programme and technological demands. Partnerships To establish strategic partnerships and linkages with key/relevant stakeholders. Information Technology To expand information management capacity supporting multi-site connectivity for the purpose of Integrating academic and administration support. Marketing To implement an effective internal and external marking and communication strategy. Student Support

To implement a functional student support system as per relevant Acts and Policies.

Business Unit

To secure and deliver Learnerships, Apprenticeship and Skills Programmes effectively.

Quality Management

To sustain and implement internal and external quality assurance systems.


Governance To uphold and practice principles of a good governance system

5. ACADEMIC BOARD REPORT Enrolments for 2016

Campus Name NCV

2014 2015 2016


ALBERTON 1141 1120 1164

BOKSBURG 764 805 881

GERMISTON 1509 1456 1521

KATHORUS 1633 1213 1305

KEMPTON 1320 1290 1300

TEMBISA 1335 1494 1489

Sum 7702 7378 7660

Report 191

REP 191 ENG

REP 191 BUS

2014 2015 2016 2014 2015 2016

Full and Part Time

Campus Name

GERMISTON 3565 3415 3434 1875 1944 1970

KATHORUS 1408 1647 1801 631 711 964

KEMPTON 3622 3059 2817 1374 1493 1668

Sum 8595 8121 8052 3880 4148 4602

2016 Examination Results Results: National Certificate (Vocational) November 2016

The percentage pass written average: 81.46%

Results analysis for NC (V) 2016

88,54% 87,24% 84,73% 84,55% 83,83%

78,57% 77,67%

NC (V) November 2016 combined subject results All programmes per campus hi to low

90,87% 87,25% 87,07% 85,03% 83,82% 76,27% 74,63%




Results: Business Studies Report 191

Campus S2 2016 S1 2016 S2 2015 S1 2015 S2 2014 S1 2014

Germiston 80.09% 85.15% 77.76% 84.57% 78.43% 72.92%

Tembisa Alberton EWC Boksburg Germiston Kempton Kathorus

88,14% 87,04%

83,52% 83,51% 82,91% 80,99%

76,66%



87,53% 85,60% 85,07% 84,25% 84,07%

80,94% 79,67%




Kathorus 68.48% 84.12% 75.95% 86.25% 76.99% 70.93%

Kempton 77.92% 86.63% 80.64% 81.80% 84.22% 80.29%

EWC 76.56% 85.29% 78.15% 84.12% 79.86% 74.58%

Results: Engineering Studies Report 191

T1/16 T2/16 T3/16

58,90% 64,65% 74,15%

EWC Subject % Pass for 2016 Trimesters

T2/15 T3/15 T1/16 T2/16 T3/16 T1/17

71,07% 56,23% 61,92% 72,27% 76,32% 81,19%

% Pass at Germiston Campus for a period of six trimesters

Germiston


Procurement – Learning and Teaching Support Material (LTSM) & Personal Protective Material (PPE) Text books procured in 2016 for EWC students NC (V) = R10 011 456,71 Report 191 = R 7 400 558,54 PPE – Engineering = R945 547,18 PPE - Hospitality = R101 039,92 Document Reviews The division held two document review sessions to ensure that the policies and procedure documents utilized to monitor the academic activities of the college. Review dates are 8 – 9 March 2016 and a second one on 10 and 11 August 2016. Lecturer Support System (LSS) System introduced to give support to lecturers by DHET so that they can share good practices and support each other in the similar subject they offer. EWC registered 23 lecturers in the Office Data Processing L4 and Auto-Repair and Maintenance L4 for curriculum revision.

T2/15 T3/15 T1/16 T2/16 T3/16 T1/17

65,87%

46,14% 47,65% 51,43% 66,16% 74,54%

% Pass at Kathorus Campus for a period of Six Trimesters

Kathorus

T2/15 T3/15 T1/16 T2/16 T3/16 T1/17

71,58% 56,91%

70,20% 71,56% 80,13% 80,45%

% Pass at Kempton Campus for a period of six trimesters

Kempton


Intervention Meetings: After the results have been analysed, the Academic Division complies a

schedule of Poor performing subjects and conduct intervention meetings and follow-up visits at

campuses in support of the lecturers for improvement before the next examinations.

Sharing of best practices: The Academic Division organizes sharing of best practices among

campuses to support poor performing subjects.

Diploma Ceremony:

The Diploma Ceremony was held on the 20 May 2016 at the Transnet School of Engineering Hall in

Esselen Park. NC (V) Level 4 Graduates were 619 and N6 Diplomandi 196. There were 21 awards that

were presented for each Programme offered at EWC.

Central Marking:

EWC initiated Central Marking from 2010 to date for NC (V) Level 2 and L3. The Central marking started

on the 28 October until the02 November 2016. All Vocational subjects are marked at Germiston campus

and Fundamentals at Kempton campus under the Leadership of the Heads of Schools. Each campus

has to be presented by one Head of Division. The scripts that were marked were 56 616.

Business Unit

Grants

Grants received between 2015 and 2016 from SETAS were as follows;

NARYSEC LEARNERSHIP GRANT : R1,050 000.00

W&RSETA PRACTICUM ROOM GRANT : R250,000.00

GDE ESSP TRAINING: R 15,760,293.00

MERSETA ARTISAN DEVELOPMENT: R4,319,850.00

INSETA WIL GRANT : R6,300,000.00

FP&MSETA WIL GRANT: R600,000.00

BANKSETA WIL GRANT : R1,417,5000.00

FOODBEV SETA : R288,000.00

Learnerships

The following learnerships were approved:

Further Education and Training Certificate -Business Administration Level 4 SAQA ID: 61595 • National Certificate – Wholesale and Retail Operations. Level 2 ID: 58206

Apprenticeship

An MOU was signed with merSETA to train 31 students as follows:

Fitting & Turning – 10 Germiston Campus

Electrician – 10 Kathorus Campus

Motor Mechanics – 11 Tembisa Campus

Skills training

EWC signed an MOU with GDE to train 1721. The students were trained on the following unit standards:


Early Childhood Development [ID:244472]

Office Administration [ID: 110021 & ID:14667]

Clean and Maintain Area : [ID 113818]

Certificate function

The ESSP certificate function of educators and workers was held as follows:

24 June 2016 – D6 Germiston Campus, 52 teachers 5 August 2016 – Tembisa campus hall, 295 workers 12 August 2015 – Springs Hall, 1031 workers 23 September 2016 – Thokoza Auditorium, 1314 workers

Placement

ICASS Placement for Business studies – 752 out of 786 (97%)

The students were placed in the following companies:

Total Number of students placed Company

16 Absa

235 Ekurhuleni Metro Municipality

19 Joburg Theatre JHB

22 Carnival City

6 Emperors Palace

3 Faircity Quatermain, Sandton

3 Mapungubwe Hotel

40 District Office Meyersdal

113 Public Works JHB

12 Makro Alberton

7 Makro Germiston

7 Makro Carnival

73 Transnet

10 Deutsche Gesellscgaft fur Internationale Zusammenarbeit (GIZ)

74 Public Works Pretoria

38 Makro Germiston

20 Public Works Pretoria

4 Emperors Palace

5 Fly Inn

2 Mozee Tours and Transport

13 Protea Hotel

30 Bakers Tankers

TOTAL : 752

Engineering studies placement


ICASS Placement for Engineering studies – 108 students placed


Total placement Company

58 Scaw Metal

20 Ekurhuleni Metro Municipality

30 Actom

TOTAL : 108

WIL Placement

Placed 254 out of 272 (93%)


Total Number of Students placed

Company

5 Procter & Gamble Manufacturing SA

17 Fedics

58 Gauteng Department of Education

2 Fashion Express

19 Imperial Retail Logistics

6 Department of Public Works

4 Marsh Africa PTY LTD

15 ABSA Service Centre

2 Genric Insurance Company

1 Old Mutual

17 Sanlam

1 Two Mountains Holding

7 Metropolitan Life

1 South African Police Services Germiston

4 Wealth Solution Capital

1 Sobethu Properties PTY LTD

2 Food Bev Seta

92 Deloitte

TOTAL: 254


Permanent Employment


FEDICS (6)

Gauteng Department of Education (22)

Training

Samsung Electronics Engineering Academy Thirty five (35) students received practical Training

Wholesale & Retail Practicum Room, Launch 27 July 2016

Partnership with SETAs


CETA

FP&MSETA

EWSETA

HWSETA

BANKSETA

INSETA

W&RSETA

SSETA

MICTSETA

MERSETA

TETA

CHIETA

ETDPSETA

LGSETA

CATHSSETA

FASSET

FOODBEV SETA

SASSETA


6. STUDENT REPRESENTATIVE COUNCIL REPORT „To implement a functional student support system as per relevant Acts and Policies‟: the major objective of the Student Support Services has been addressed in 2016. The activities done to attain the objective were as follows:

Advertisement of posts to address staff gaps and training of SSS staff,

Provision of support services for students applicable at entry level,

Continuous collaboration between SSS and Business Unit for placement

Establish via BMS, a centralized student information system e.g. Databank

Evaluation of quality of SSS services Student Representative Council 2016 Independent Electoral Commission (IEC) assisted the college with the SRC elections which was held on Friday, 12 February 2016. The election of Executive members was scheduled to take place on 27th February 2016, which was the last day of the SRC training, this exercise was only achieved at a later stage from college grounds. All elections forms were updated and were made available on the Quality Manual as records. From each of the six campuses, four students were selected to represent students within the SRC. Unfortunately, despite all the efforts to expose the SRC to leadership training the year was marred with unrests which robbed some of these students of valuable exposure. The following 24 members were the official SRC of 2016:

Educational Psychologist Services

Information Desk, Career Guidance & Financial Aid sessions were made available and functional to prospective students

Capturing of students with disabilities during registration was introduced successfully

OHS incorporated during Induction sessions

Meeting protocol achieved as planned

Staff training in Counselling, Career Guidance and First Aid Level 2

Alumni training for all SSS officers and ETLs

Assemblies at all campuses were monitored,

On - Course Academic Support - was successfully implemented.

All Campuses implemented placement test (PACE), Career guidance and Counselling were done through slide shows and group sessions during the enrolment.

All students who were struggling with Mathematics and English were assisted through Study Skills Workshops.


Care and Support – was provided to all students who were experiencing learning difficulties, trauma, health problems and psychological problems by Educational Psychologist and Remedial Lecturers. Home visit and Hospital visit were conducted with students who were hospitalised and sick. Individual and group counselling were done with students who were psychological affected by different problems. Fifty (50) students were reached by Educational Psychologist and Remedial Lecturers for sessions. Motivational Talks - were done during Anti substance abuse Awareness programme at Campuses. Female students were motivated during Girlogy programme and sanitary towel was provided to all female students who attended a Girlogy programme. Motivation with three (3) students from Germiston Campus who attended National student competition was done by Educational Psychologist before, during and after they participated in the competition. Health and Wellness – HEAIDS Activation were successfully conducted at Campuses as plan. All students who go through health screening received pre and post counselling. All students who tested positive for HIV were referred to the Department for further treatment, care and support. Students who tested negative for HIV were encouraged to remain negative. Anti – Substance Abuse Awareness including SAPS random search were successfully conducted at Campuses. Students who were identified with Substance Abuse problem were referred to SANCA for drug treatment and after care programmes. Students successfully complete SANCA after care programmes.

Disability Management/ SNE – in 2016, eighteen (18) students with different disabilities were captured on BMS after they disclosed their status. Furthermore, students with disability received care and support from Remedial Lecturers and the Educational Psychologist. They were also taught on how to utilize assistive devices for low vision and hard of hearing. Concessions before examinations was applied for to accommodate affected students and was granted. Out of eighteen (18) identified students with disabilities, eleven (11) were females and seven (7) were males students.

Sport Arts & Culture:-

Competitions in different sporting codes took place during 2016 both at college and National level.

College level42 students participated in the college arts 3and culture Alberton campus – position1 in female poetry Germiston campus – position 1 in male poetry Tembisa campus – position 1 pencil drawing Germiston campus – position 1dramatic poetry Kathorus campus – position 1 in Pantsula dance Tembisa campus – position 1 in Hip Hop dance Alberton campus – position 1 in gumboots dance CoSSA National level

09 EWC participants took part in the event EWC Hip Hop dance took position 1 Gauteng province got position 5 overall 10 participants from EWC took part in the CoSSA National Summer Ball games in Port Elizabeth


PART D: FINANCIAL INFORMATION


1. COUNCIL RESPONSIBILITY AND APPROVAL

The council is required by the Continuing Education and Training Act No. 16 of 2006, as amended, to maintain adequate accounting records and is responsible for the content and integrity of the financial statements and related financial information included in this report. It is the responsibility of council to ensure that the financial statements fairly present the state of affairs of the college as at the end of the financial year and the results of its operations and cash flows for the year then ended, in conformity with GRAP. The [external auditors were/Auditor-General was] engaged to express an independent opinion on the financial statements and were given unrestricted access to all financial records, related data and relevant parties. The financial statements have been prepared in accordance with GRAP including any interpretations, guidelines and directives issued by the ASB and in the manner required by the Minister of Higher Education and Training.

The financial statements are based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates. Council acknowledges that it is ultimately responsible for the system of internal financial control established by the college and places considerable importance on maintaining a strong control environment, which includes the safeguarding of assets and compliance with relevant legislation. To enable the council to meet these responsibilities, the council sets standards for internal control aimed at reducing risk in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting and other procedures, and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the college and employees and management are required to maintain the highest ethical standards in ensuring the college's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the college is on identifying, assessing, managing and monitoring all known forms of risk across the college. While operating risk cannot be fully eliminated, the college endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The council accepts its responsibility to ensure that the college is managed in a responsible manner, considering the interest of all stakeholders, including the DHET, unions, employees, students, local communities and creditors. Responsible management entails, inter alia, compliance with applicable statutory and regulatory requirements, including risk management. The council is of the opinion, based on the information and explanations given by management that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements and that the financial statements are free from material misstatement, whether due to fraud or error. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit. The council has reviewed the college‟s cash flow forecast for the year to 31 December 2017 and, in the light of this review and the current financial position, it is satisfied that the college has, or has access to, adequate resources to continue in operational existence for the foreseeable future.

The college is dependent on the DHET for continued funding of operations in line with the annual DHET programme funding allocation. The financial statements are prepared on the basis that the college is a going concern and that the DHET has neither the intention nor the need to liquidate or curtail materially the scale of the college's operations. The Auditor-General is responsible for independently auditing and reporting on the college's financial statements and his report is presented with these financial statements. The financial statements set out on page 120 to 174 were approved by the council on 31 March 2017 and were signed on its behalf by:

______________________ Dr M Mohlala Chairperson of the Council


2. REPORT OF THE ACCOUNTING OFFICER

2.1 General review of the state of financial affairs

The college recorded a total income of R355, 022million for 2016 financial year from R315, 945million in 2015.

Government grants and subsidies were revised to R219, 282million for 2016 from original allocation of

R241,389 million. The total amount received from NSFAS for the 2016 financial year amounted to R53,6 million

resulting in a total funding of R272,904 million for the 2016 financial year from R243,579 million in 2015. This

represents a 12% increase in total funding with National Student Financial Aid Scheme (NSFAS) funding

contributing 55% of total tuition fees for 2016.

Total expenditure including employee related costs administered by the Department of Higher Education and

Training increased by 14% for the 2016 financial year from R 242,075 million in 2015 financial year to R276,020

million in 2016 representing an underfunding of a percentage point of R3,116 million. The expenditure was

made up as follows;

2016 2015

Increase/ (Decrease)

Employee related costs and DHET management fee

174 209 121 156 226 694 17 982 427

Repairs and maintenance

3 976 688 5 758 862 (1 782 173)

Professional services

18 718 889 15 766 566 2 952 323

Finance costs

267 430 61 364 206 066

Books and learning materials

17 909 873 11 663 931 6 245 942

Printing and stationery

2 283 943 1 968 749 315 194 Telephone, postage, internet, network and communication costs

6 256 691 6 709 834 (453 142)

Marketing

4 223 626 2 716 647 1 506 980

Municipal services

3 847 317 5 373 007 (1 525 690)

Learnership project stipends

6 658 432 5 477 984 1 180 448

General expenses

37 668 245 30 352 147 7 316 098

Total expenses

276 020 256 242 075 784 33 944 472

Other losses recorded during the 2016 financial year amounted to R46,429 million with the including debt

impairment of R28,026million as follows;

Debt impairment

17 356 857 3 794 696 13 562 161

Depreciation and amortisation

18 403 019 16 026 374 2 376 644

Bad debt written off

10 669 438 2 807 702 7 861 736

46 429 314 22 628 773 23 800 541


The college recognised an increase in investment income of 13% from R17,649 million in 2015 financial year to

R19,917million with income from projects decreasing by 43% from R25,989 million in 2015 financial year to

R14,944 million in 2016.

A summary of other income received by the college as follows;

2016 2015

Increase/ (Decrease)

Revenue from non-exchange transactions Sale of goods and rendering of services

79 797 51 500 28 297

Rental of facilities and equipment

1 194 505 924 744 269 762

Investment income

19 917 986 17 649 717 2 268 269

Other income

6 154 785 22 880 263 (16 725 478)

Revenue from non-exchange transactions

Public contributions and donations

1 883 933 121 489 1 762 444

Other income

10 167 533 6 716 192 3 451 341

2.2 Important Policy decisions and Strategic issues

Title Deeds

The college successfully transferred five (5) of the six (6) campuses into the name of Ekurhuleni West TVET

College. The college is in the process of transferring Kathorus campus in Katlehong and has appointed the

Quantity surveyors to assist sub-divide the Farmland still under Ekurhuleni Municipality.

Policies

The following policies were adopted after discussions at Document Review, Executive management and

Finance Committee of Council:

Changes to the Financial Policy

Gifts, donations and Sponsorship policy

Cash Management Policy

Petty Cash Policy

Inventory Management Policy

2.3 Significant Events and Major Projects undertaken for 2016

Annual Hosting of German Delegation

The ten (10) member delegation of staff and students from Ludwig Erhard-Schule in Germany visited EWC on

an exchange programme 3-17 March 2016.


The delegation was hosted with EWC families to be able to be incorporated into the South African lifestyle and

culture.

A delegation of three (3) staff members and two (2) NC (V) best students formed an EWC delegation to

Ludwig-Erhard Schule in Fürth, Germany 4-16 July 2016. The team was also hosted by the college staff.

Among other places they visited the Mayor of Fürth, the Audi plant and companies that had a partnership

with the college. They were exposed to recycling as part of waste management and the dual system.

IVETA Conference

A delegation of three (3) staff members and an external College Council member attended IVETA

Conference in Fiji Islands in the Pacific Oceans from the 23rd – 25th August 2016.

The theme of the conference was: ”Quality, Innovation and Skills Mobilization in Technical Vocational

Education and Training – an international process”.

Thirty five (35) countries attended and the conference was officially opened by the Fiji State President,

His Excellency Major General (Ret‟d) Jioji Komote. The venue of the conference was in Suvu the Capital

City of Fiji.

Dual System Pilot Project (DSPP)

EWC at Tembisa campus is one (1) of the four (4) colleges piloting the Dual System in Electrician. The

project is supported by a German organisation (GIZ) and funded by DHET through NSF. Twenty-five (25)

students are in the project.


Ms Connie Maleka the Acting Campus Manager visited Turin in Italy for training on the management of

the project in December 2016.

merSETA Artisan Development Training

This is a three (3) year artisan development funded by merSETA for a period of three (3) years. The

training started 1 March 2016 with 31 students on three (3) trades – Electrical Engineering offered at

Kathorus Campus; Fitting and Turning offered at Germiston Campus and Automotive offered at Tembisa

Campus.

The training to be completed in 2018 and students are placed at workplace during training on a block

release. The students are placed at Siemens SA; Presto and Ekurhuleni Metropolitan Municipality.

Learnerships

The college is running the Business Administration level 4 Learnership at Boksburg for students and it is

funded by NARYSEC. It started on 1 March 2016 with fifty (50) students in attendance.

Samsung Training

Thirty (35) students progressed to NC (V) level and are now part of the Samsung Electronics Engineering

Academy project. Students who received 70% pass were part of the graduations ceremony held at


Boksburg Campus on 26 February 2016. The function was graced by Mandla “Spaceboy” Sithole as a

motivational speaker.

DHET TVET Bursary (NSFAS)

NSFAS has introduced the Student-Centred Model and EWC was part of the pilot project.

SACPO / ETDP SETA Lecturer Development Project

EWC was part of the six (6) colleges of the UNISA lecturer development project. Fifty (50) lectures of

EWC were part of it and ETDP Seta funded the training. The training had 12 sessions with 72 credits.

The training started in March 2016 and completed in December 2016. It covered Facilitations;

Mentorships; Moderation and Student Support.

Diploma Ceremony

The EWC diploma ceremony was held at Transnet Hall School of Excellence in Esselen Park on 20 May

2016. Mr Joel Sekoala was the guest speaker and the Soweto String Quartered blessed the ceremony

with musical rendition.

Six hundred and fifty four (654) students received NC (V) certificates and one hundred and fifty five (155)

received National N. Diploma.

Wholesale and Retail Seta Project

W&R SETA funded EWC on the facilitator of the Practicum room at Boksburg Campus. Makro funded

the stock to value of R20 000.00 and it was officially launched on 29 July 2016.


EWC is to offer NQF level 2 Wholesale and Retail Operations.


Extra Special Support Programme (ESSP)

The college trained Gauteng Department of Education training on the following projects:

Homework Assistance

Arts and Culture

Office Administration

The number of employees training wee five hundred and fifty three (553). The project was funded by

553.

Accreditation

The college received accreditation from SASSETA on the following programmes:

National Certificate: Paralegal Practice NQF Level 5

National Certificate: General Security Practices NQF Level 3

Further Education and Training Certificate: Specialist Security Practices.

2.4 Significant Events and Major Project undertaken or completed

Work Intergrated Learning (WIL)

The college was able to place six (6) staff members at Kees Bayers in Isando from 28 February 2016 for

three (3) weeks – in the following departments:

Human Resource

Finance

Marketing

The project was supported and funded by Foodbev Seta. In return three (3) staff-members from Foodbev

became guest lecturers.

CEO Business Plan Awards

The college Centre for Entrepreneurship (CfE) ran the CEO Business Plan competition, and it was

launched in 22 March 2016. Nedbank Foundation donated an amount of R190 000.00. The Awards

were held on 16 September 2016 at Kgorong Auditorium in the college Corporate Centre.

Below is the list of winners:

Full Name Campus Award Cash Prize

Patience Mzanzi Germiston Overall winner R50 000.00

Thobeka Dladla Germiston 1st runner R30 000.00

Monicca Mkhaza Kempton 2nd

runner R20 000.00

Simphiwe Mabuza Alberton 3rd

runner R10 000.00

Lehlohonolo Kgola Boksburg 4th runner R10 000.00

Thobeka Dladla Germiston Best oral presentation R10 000.00

Patience Mzanzi Germiston Best written Business Plan R20 000.00


One of the finalist from the seventeen (17), Linah Nkani, was contracted by Nedbank Foundation to

produce a documentary on the organizations they are supporting in Gauteng and Polokwane Provinces.

The CfE with the assistance of SEDA Kempton Park put the seventeen (17) finalists on a R9 000.00

programme which is a DSBD initiative seeking to support informal traders to participate in the mainstream

economy. It was a two (2) programme in December 2016.

The college signed an MoU with the Innovation Hub in Pretoria on 18 March 2016 to support the

Incubation Hub project.


The Innovation Hub had since put a structure of Ekasi Lab at Tembisa Campus for training of IT

entrepreneurs for the campus and the township.

The college has started with the building of the Enterprise Hub (Incubation) at Kathorus Campus close to

the CfE as an expansion to the project. The incubation project is supported by SEDA.


Partnerships and Donations

MAN Truck & Bus donated engines to the value of R500 000.00 to the Germiston campus.

The handover function was held on 4 November 2016 and in attendance from MAN Truck & Bus were:

Mr Mark Geyer (MD), Mr Moses Ntuli (CFO), Mr Ian Seethal (Head of Network Development &

Communications) and Ms Tanya Weisswange (Marketing).


Ford Motor Company of Southern Africa donated three (3) Ford Rangers to the college to the value of

R1 216 528.30. The vehicles are placed in the automotive workshops at Kathorus, Kempton and

Tembisa campuses.

Kathorus Campus


Kempton Campus

EWC hosted a Business Lunch on 20 October 2016 at Kgorong Auditorium in the Corporate Centre and

186 guests from SMMEs and big corporate attended. The College hosted as a Strategy to increase

business partners. The old partners were given a token of appreciation of a glass trophy.


The principal had meetings with principals from feeder areas of schools and community leaders in the six

(6) campuses during the August month of 2016 as part of the Deputy Minister Campaign of the Decade of

the Artisan. They were exposed to facilities of the campuses and taken through the college strategic

vision.

Employees Awareness Programme (AEP)

World Cancer Day was observed on 4 February 2016.


The

college

celebrated the Family Fun Day for staff members and their families on 22 October 2016 at Kempton

Campus grounds. The families and especially kids enjoyed themselves.


The college celebrated Mandela Day on 16 July 2016 at Villa Lisa. Staff and companies joined hands in

renovating a house belonging to a child-headed household at Boksburg Campus NC (V) Level 2 student.

Goodies were also shared with identified needy families.


2.5 Other Governance Structures

Supply Chain Management (SCM)

The SCM is governed by a policy that was ratified by the College Council.

Bid Specification Committee (BSC)

It is composed by five (5) people and three (3) of the permanent members constitute a quorum.

The BSC is governed by the Terms of References or charter. The non-permanent are appointed by the

principal per project as identified in the procurement plan.

Their functions include the Bidding process, planning for a bid process, preparing for the bid

documentation, communicating with prospective bidder and receiving bids. The SCM is responsible for

the management of supplier database and supplier policy principles.

Bid Evaluation Committee (BEC)

The BEC is a standing committee appointed by the Accounting Officer (principal). The principal time and

again appoints a specialist for a specific bid should it be required. The committee is demographically

representative to reflect race, gender and expertise. Training and development of skills and knowledge is

encouraged.

The BEC composes of six (6) members and three (3) of the permanent members constitute a quorum

The BEC is governed by the Terms of Reference or Charter. Its function is to evaluate each bid in

accordance with the evaluation criteria published in the request documentation.

Bid Adjudication Committee (BAC)

The Bid Adjudication Committee is established in terms of Regulation 16A to the PFMA and its purpose is

to provide control function to assess the recommendations from the Bid Evaluation Committee. The

BAC‟s function is to ensure that the process of soliciting and evaluating bids is fair, equitable,

transparent, competitive and cost effective.

The BAC is composed of five (5) members and three (3) of the permanent members constitute a quorum.

The committee is appointed by the Accounting Officer (principal). It is imperative that the BAC criteria,

including the manner in which points are to be awarded, are clearly stated in the bid documents.

Information Technology

The Information Security Management Systems (ISMS) has been established which meets on a quarterly

basis to review plans, policies and standards. It is presently working on ISMS 27001 SABS (SANAS)

Accreditation.


New policies drafted in the ISMS committee and approved by the College Council:

Change Management Policy

Business Continuity Policy

Backup Policy

Access Control Policy

Internet Policy

Email Policy

Information Security Management Systems Policy Statement

Ekurhuleni West TVET College operates in an advanced information society where developments are

making systems more networked and global than ever before. It‟s against this backdrop that our

information assets are playing an increasingly vital role at Ekurhuleni West TVET College. Protection and

secure use of information assets are urgent priorities for Ekurhuleni West TVET College.

The purpose of this policy is to protect, preserve and manage the confidentiality, integrity and availability of information and all supporting business processes, systems and applications. This policy sets out the principles required to protect Ekurhuleni West TVET College information assets from threats, whether internal or external, deliberate or accidental. This policy applies to, and is mandatory for, all Ekurhuleni West TVET College personnel. All references

made to personnel in this policy include Ekurhuleni West TVET College employees, full or part-time,

contractors and third-party personnel.

The ISMS Policy of Ekurhuleni West TVET College towards Information Security is:

Protect Ekurhuleni West TVET College Intellectual property and proprietary information and documents.

Establish, maintain and improve an Information Security Management Systems conforming to ISO/IEC 27001:2013

All personnel, regardless of their role, are responsible for conducting their work in a manner that protects the security of Ekurhuleni West TVET College information. This includes adhering to all the information security principles.

Set direction in achieving a safe and secure environment and availability of information to users.

To maintain the Confidentiality, Integrity and Availability of all information.

To manage our Information security using a Risk Assessment process with

Criteria for evaluating the risk taking into account confidentiality, integrity and availability of information.

To maintain high awareness levels of security protocol, policies and best practices as applicable to various roles, role players and systems through training and awareness campaigns.

Comply with legislative, regulatory and contractual requirements from national level through to departmental level.

Information Security incident management, record keeping and prevention.

Continuous improvements in information security management through implementation of ISO/IEC 27001 integrated into the Ekurhuleni West TVET College Quality Management System.


All Employees and external people accessing and using any network, equipment and/or premises must comply with the Information Security Management Systems Policy, controls and other related policies, rules and regulations. Anybody who violates any of these regulations shall be penalised in accordance with the Ekurhuleni West TVET College policies, procedures, guidelines and best practices.

Connectivity – fibre optic (WAN) is installed connecting the EWC Campuses with a breakthrough of

100mbps international.

Upgraded data capacity from 10mbs to 100mbs across campuses.

Network Infrastructure

- Configured WI-FI and physical network infrastructure for New Corporate Centre - Upgraded 4 domain servers - Replaced X216 Computer Classroom Workstations and X6 Servers

Moved ITS (BMS) Servers offsite (Cloud Solution) - to reduce the cost of maintaining and managing the ITS system, business continuity, scalability, backup, verification assurance and access to automatic updates. Implemented Student and Lecturer I enabler for new registrations and viewing of Students records.

Moved physical exchange to cloud solution. Deployed Office 365 for exchange online solution for

security and reliability. The exchange online helps protect information with advanced capabilities. Users

are able to access their data anytime, anywhere.

Developed a ticketing system that enable users to report queries and track status of their calls. Used Info

capture module on the Quality Manual System to deploy the automated workflows for ICT support

system.

Quality Management System

The Quality Management System was externally audited by SABS in 2016 in the following areas:

ISO: 9001of 2008 (Quality) Kathorus Campus, Kempton campus and Corporate Centre

It went well as the College passed the audits with only minor findings that were raised. The auditors also

expressed their satisfaction with the College QMS.

Quality Policy Statement

The Ekurhuleni West TVET College Training Quality Management System (QMS) has been developed in

accordance with the fundamentals, requirements, and guidelines provided in ISO 9001: 2008, and in

complete alignment with both our Continuous Improvement and Effectiveness philosophy and our Quality

Management System.

Our identified areas of focal attention to ensure continuous performance improvement, effectiveness and

the pursuit of excellence are: Academic Affairs, Administration, Business Unit, Governance, Informational


Resources, Information Security, Estate Management, Occupational Health and Safety, Finance, Human

Resources, Student Support Services, Marketing and Communication and Strategic Management.

The QMS is that part of the overall management system which implements our Quality Policy, establishes

procedures by which we meet or exceed client expectations, and satisfies international system

requirements for ISO registration.

Ekurhuleni West TVET College shall establish, monitor and review Quality Objectives on a continuous

basis.

Ekurhuleni West TVET College is committed to the training and continuous development of all staff to

ensure that all employees are adequately equipped and well trained to perform their duties in a

professional manner.

To achieve the above Quality objectives our Quality Management System is driven by the Quality

Management Principles identified in ISO 9001: 2008 to lead our College towards improved performance:

Customer Focus

Leadership

Involvement in People

Process Approach

System Approach to Management

Continual Improvement

Factual approach to decision making

Mutually beneficial supplier relationship

Safety, health and environmental issues facing EWC.

EWC is accredited on Occupation, health and safety standards (OHS 18001) by SABS.

The college follows strict standards and has external parties doing internal auditing on its facilities –

grounds, workshops and staff. Medical checks are done on staff in the workshops and drivers including

cleaners. Evacuation drills are performed per policy. HIRA is being recorded on the Quality Manual.

The college has appointed three (3) OHS Officers and each site has OHS Committees in the six (6)

campuses including Corporate Centre. OHS Representatives are appointed through a letter as per

section 17 of the Occupational Health and Safety Act.

Health and Safety Policy Statement

Ekurhuleni West TVET College is committed to a Health and Safety System that protects its employees,

property and other workers on its premises, the general public and the environment. Occupational

Health and Safety is one of our identified areas of focal attention of our Quality Management System

through which we are committed to ensure continuous performance improvement. Ekurhuleni West

TVET College Training‟s goal is to provide and sustain a healthy, injury free work place as we are


committed to prevent injury and ill health. By working together in all aspects of the Health and Safety

System, we expect to achieve zero incidents, losses and injuries.

Management sets an example and provides leadership in terms of the Health and Safety System.

Management ensures that safe work practices are developed through hazard analysis and that these

practices are followed. Management provides proper equipment and training and ensures that all

employees are familiar with the applicable requirements of the Occupational Health and Safety Act, the

General Safety Regulations and the Collective Agreements. The Joint Health, Safety and Environment

Committee is recognized as a key component of the Health and Safety System.

Employees at every level are accountable and recognised for Health and Safety performance. Active

participation is expected from everyone, every day, in, every job. Employees are accountable for safe

behaviour including reporting all injuries and safety issues and participating in improving Health and

Safety. Ekurhuleni West TVET College intends to comply with all Health and Safety Legislation and to

any other requirements to which the organization subscribes that relates to its OH&S hazards.

Ekurhuleni West TVET College will, so far as it is reasonably practicable, safeguard the health, safety

and welfare of its employees, temporary staff, students, visitors, or others affected by its activities and

operations.

Ekurhuleni West TVET College will provide:

A safe place of work;

Safe equipment;

Safe systems of work;

Effective procedures use in case of emergencies and evacuation of the premises;

Ensure that students and staff receive Health and Safety training;

Employee consultation and participation in Ekurhuleni West TVET College Policies and Practices;

The promotion of employee and student recognition of their individual responsibility to exercise self-discipline and accept responsibility, to do everything they can to prevent injury to themselves or others.

As part of its responsibility, Ekurhuleni West TVET College makes safety expertise and services

available to all its programmes through professional safety consultancies.

The above statements are intended to highlight selected minimum Safety Principles. All departments,

staff, and learners students are expected to know and comply with these precepts.

Environmental Policy Statement or become self-employed.

Environmental protection and compliance, the management of waste and hazardous waste, to manage

pollution and to implement stable environmental practices as well as to recycle and going green is the

responsibility of all Ekurhuleni West TVET College departments and personnel.


Ekurhuleni West TVET College will:

Conduct all of Ekurhuleni West TVET College operations in an environmentally responsible and sensitive manner.

Commits to comply with applicable legal requirements and with other requirements local and

overseas, federal, state and local regulatory requirements governing hazardous materials and

wastes, pollution prevention and environmental protection which relates to its environmental

aspects, as well as By-laws applicable to disposal of hazardous waste.

Commit to continuously improve Ekurhuleni West TVET College systems and procedures related

to environmental protection and pollution prevention activities by setting and reviewing objectives

and targets.

Store, use, and dispose of chemicals and potentially hazardous materials and waste in a manner

that protects the environment as well as the health and safety of the work force and the public.

Minimize and prevent the generation of hazardous and non-hazardous wastes and emissions at

the source to recycle, reuse and reduce, to the extent that it is economically and technically

practical.

Actively pursue reductions of the generation of waste and the discharge of contaminants into the

environment.

Identify and implement waste reduction opportunities through encouragement and involvement of

all personnel.

Establish and implement operational control procedures to maintain compliance.

Undertake scheduled periodic/ongoing environmental quality assessments to determine

compliance by establishing management programs to achieve objectives and targets.

Establish and implement procedure to carry out corrective and preventive actions.

Entrust each Manager/Supervisor with responsibility for the environmental compliance of his/her

area.

Encourage feedback from all personnel regarding hazardous materials minimization and

environmental compliance.

Train personnel and communicate relevant Environmental Management System (EMS) requirements to them.

Communicate this policy to all personnel and to the public upon request, as warranted. Asset Management All assets, including those newly purchased, are currently reflecting on the college consolidated Asset Register. All assets are bar-coded after purchase and then recorded on the Asset Register. The Asset Register complies with the minimum requirements and reconciliation performed between the Asset Register and the basic accounting system. Financial Statements The Audit Financial Statement were audited by the Auditor General during 2016 Financial year and submitted to the Department of Higher Education and Training. Approval The Annual Financial Statements, set out on page 115 to 172 were approved by the College Council through the Audit and Risk Committee.

-------------------------------------------------- H.M. Ntlatleng

Principal and Accounting Officer


3. REPORT OF THE AUDIT AND RISK COMMITTEE

The Audit and Risk Committee is pleased to present the report for the financial year ended 31 December 2016.

Audit and Risk Committee Responsibility The Audit and Risk Committee reports that it has complied with its responsibilities arising from Section 25 (1) (c) of the Continuing Education and Training of South Africa and Treasury Regulation 3.1. The Audit Committee also reports that it has adopted appropriate formal terms of references and has discharged all its responsibilities as contained herein. The effectiveness of internal control The system of internal control is designed to provide cost-effective assurance that assets are safeguarded and that liabilities and working capital are effectively managed. In line with the CET and PFMA requirements where applicable, Internal Audit and External Audit provided the Audit and Risk Committee and management with assurance that the internal controls are adequate and effective. This is achieved by means of evaluating the effectiveness of the management of identified risks, as well as the identification of corrective actions and suggested enhancements to the controls and processes. Through the reports from different assurance providers, it was identified that the system of internal control was not entirely effective during the year as some instances of non-compliance with internal controls were reported by both Internal and External Audit. The Audit Committee will continue to monitor progress against the corrective action plan implemented by management in addressing the root causes of the audit findings. In-year management and monthly/quarterly reports submitted in terms of the CET The Audit and Risk Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer of the College during the year under review. Financial statements We report that as part of our mandate to provide oversight to the Council we have performed the following activities; -Reviewed and discussed the annual financial statements to be included in the annual report, with the auditors and the Accounting Officer. -Reviewed the external auditor‟s management report and management responses thereto. -Reviewed the Council‟s compliance with legal and regulatory provisions. -Reviewed significant adjustment resulting from audit The Audit Committee concurs with and accepts the auditor‟s conclusions on the financial statements and is of the opinion that the audited financial statements be accepted and read together with the report of the external auditors. Internal audit The Audit Committee is satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the Colleges in its audits. The Internal Audit function was outsourced to Grant Thornton on a three year agreement ending 31 July 2018. The committee has continually reviewed and monitor progress on issues raised during internal audits. Risk management

Risk management strategy is in place and a risk assessment was conducted during the year under review. The Risk Management Committee meets on a quarterly basis. There has been significant progress with the implementation of risk management in the college.


Conclusion The Audit Committee congratulates the College for achieving a clean audit report for the year under review. The Audit Committee will monitor the improvements made by management in addressing control deficiencies identified by external and internal audit.

-------------------------------------------------- Mr. S Manamela Chairperson of Risk and Audit Committee


4. AUDITED ANNUAL FINANCIAL STATEMENTS Report of the Auditor-General to the Minister of Higher Education and Training and the Council of Ekurhuleni West Technical and Vocational Education and Training (TVET) College

Report on the audit of the financial statements

Opinion

1. I have audited the financial statements of the Ekurhuleni West TVET College set out on pages 120 to 174, which comprise the statement of financial position as at 31 December 2016, and the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Ekurhuleni West TVET College as at 31 December 2016, and its financial performance and cash flows for the year then ended in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Continuing Education and Training Act of South Africa, 2006 (Act No. 16 of 2006) (CET Act), as amended. Basis for opinion

3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general‟s responsibilities for the audit of the financial statements section of my report.

4. I am independent of the college in accordance with the International Ethics Standards Board for Accountants‟ Code of ethics for professional accountants (IESBA code) together with the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

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

for my opinion.

Emphasis of matters

6. I draw attention to the matters below. My opinion is not modified in respect of these matters.

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Material losses and impairment – student debtors

7. As disclosed in note 4 to the financial statements, material losses to the amount of R 10 669 438 were incurred as a result of bad debts write-off on student debtors. In addition, the college provided for a provision for doubtful debts to an amount R 34 466 680.

Restatement of corresponding figures

8. As disclosed in note 31 to the financial statements, the corresponding figures for the year ended 31 December 2015 have been restated as a result of an error in the financial statements of the college at, and for the year ended, 15 December 2016.

Other matter

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

Prior year audited by a predecessor auditor

10. The financial statements of the previous year were audited by a predecessor auditor in terms of section 4(3) of the Public Audit Act on 31 December 2015. The previous audit opinion was unqualified.

Responsibilities of the council for the financial statements

11. The council is responsible for the preparation and fair presentation of the financial statements in accordance with SA Standards of GRAP and the requirements of the CET Act, as amended, and for such internal control as the council determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

12. In preparing the financial statements, the council is responsible for assessing the college‟s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the council intends to either liquidate the college or cease operations, or has no realistic alternative but to do so.

Auditor-general‟s responsibilities for the audit of the financial statements

13. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatements, whether due to fraud or error, and to issue an auditor‟s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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14. A further description of my responsibilities for the audit of the financial statements is included in the annexure to the auditor‟s report.

Report on the audit of the annual performance report

15. The college is not required to prepare a report on its performance against predetermined

objectives, as it does not fall within the ambit of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) and such reporting is also not required in terms of the college‟s specific legislation.

Report on the audit of compliance with legislation

Introduction and scope

16. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the college with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

17. I performed procedures to obtain evidence that the college had complied with applicable legislation regarding financial matters, financial management and other related matters. I did not identify any instances of material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA.

Other information

18. The council of the college is responsible for the other information. The other information

comprises the information included in the annual report, which includes the annexures. The other information does not include the financial statements and the auditor‟s report thereon.

19. My opinion on the financial statements and findings on compliance with the CET Act do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

20. In connection with my audit, my responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information obtained prior to the date of this auditor‟s report, I conclude that there is a material misstatement of this other information, I am required to report that fact.

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Internal control deficiencies

21. I considered internal control relevant to my audit of the financial statements and compliance with

the CET Act; however, my objective was not to express any form of assurance thereon.

Internal control

22. I considered internal control relevant to my audit of the financial statements and compliance with legislation. I did not identify any significant deficiencies in internal controls.

Pretoria 31 May 2017

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ANNEXURE – AUDITOR-GENERAL‟S RESPONSIBILITY FOR THE AUDIT

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and on the college‟s compliance with respect to the selected subject matters per the CET Act.

Financial statements

2. In addition to my responsibility for the audit of the financial statements as described in the auditor‟s report, I also:

identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting 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.

obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the college‟s internal control.

evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the council.

conclude on the appropriateness of the council‟s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ekurhuleni West TVET college‟s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor‟s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of the auditor‟s report. However, future events or conditions may cause a college to cease to continue as a going concern.

evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Communication with those charged with governance

3. I communicate with the council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also confirm to the council that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and here applicable, related safeguards.

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STATEMENT OF FINANCIAL POSITION Statement of Financial Position

2016 2015

Restated

Note R R

ASSETS

Current assets

299,022,095 308,291,755

Cash and cash equivalents 3 251,116,428 254,655,129

Trade and other receivables from exchange transactions 4 15,617,020 12,099,052 Other receivables from non-exchange transactions, including transfers 5 22,228,000 28,916,366

Inventories 6 10,060,647 12,621,209

Non-current assets

425,987,879 374,251,592

Property, plant and equipment 7 422,805,194 371,192,332

Intangible assets 8 661,734 448,275

Investment property 9 2,520,951 2,610,985

Total assets

725,009,974 682,543,348

LIABILITIES Current liabilities

51,172,935 42,978,770

Trade and other payables from exchange transactions 10 34,449,316 30,171,433

Provisions 11 430,000 403,000

Unspent conditional grants and receipts 12 7,921,922 4,865,735

Finance lease liability 13 1,323,122 191,341

Payables from non-exchange 14 7,048,575 7,347,261

Non-current liabilities

3,569,164 1,637,499

Provisions 11 1,665,000 1,500,000

Finance lease liability 13 1,904,165 137,499

Total liabilities

54,742,100 44,616,269

Net assets

670,267,874 637,927,079

Accumulated surplus / (deficit)

670,267,874 637,927,079

Total net assets and liabilities

725,009,974 682,543,348


STATEMENT OF FINANCIAL PERFORMANCE

2016 2015

Restated

Note

R R

Revenue Revenue from exchange transactions

123,688,403 125,871,876

Tuition and related fees 15 96,341,330 84,365,652

Sale of goods and rendering of services 16 79,797 51,500

Rental of facilities and equipment 17 1,194,505 “924,744

Investment income 18 19,917,986 17,649,717

Other income 19 6,154,785 22,880,263

Revenue from non-exchange transactions

231,333,750 190,073,206

Government grants and subsidies 20 219,282,284 183,235,525

Public contributions and donations 21 1,883,933 121,489

Other income 19 10,167,533 6,716,192

Total revenue

355,022,153 315,945,082

Expenses

Employee related costs and DHET management fee 22 (174,209,121) (156,226,694)

Debt impairment 23 (17,356,857) (3,794,696)

Depreciation and amortisation 24 (18,403,019) (16,026,374)

Repairs and maintenance 25 (3,976,688) (5,758,862)

Professional services 26 (18,718,889) (15,766,566)

Finance costs 27 (267,430) (61,364)

Books and learning materials

(17,909,873) (11,663,931)

Printing and stationery

(2,283,943) (1,968,749) Telephone, postage, internet, network and communication costs

(6,256,691) (6,709,834)

Bad debt written off 4 (10,669,438) (2,807,702)

Marketing

(4,223,626) (2,716,647)

Municipal services

(3,847,317) (5,373,007)

Learnership project stipends

(6,658,432) (5,477,984)

General expenses 28 (37,668,245) (30,352,147)

Total expenses

(322,449,570) (264,704,556)

Other gains/losses

(231,788) -

Gain/(Loss) on sale of assets 29 (231,788) -

Surplus/(Deficit) for the year

32,340,796 51,240,526


STATEMENT OF CHANGES IN NET ASSETS

Note 38

Accumulated Surplus/(Deficit)

Total: Net Assets

R R

Balance at 31 December 2014 as previously reported 587,203,959 587,203,959

Correction of errors 31 (517,406) (517,406)

Balance at 01 January 2015 as restated 586,686,553 586,686,553

Surplus/(deficit) for the year 51,240,526 51,240,526

Balance at 01 January 2016 as restated 637,927,079 637,927,079

Surplus / (deficit) for the year 32,340,796 32,340,796

Balance at 31 December 2016 670,267,874 670,267,874


CASH FLOW STATEMENT

2016 2015

Restated

Note

R R

Cash flows from operating activities Receipts 181,438,108 143,035,718

Tuition fees 96,341,330 77,763,254

Sale of goods and rendering of services 79,797 51,500

Transfers, public contributions, sponsorships and donations 1,883,933 121,489

Government grants and subsidies 55,699,000 46,256,000

Interest 19,917,986 17,649,717

Other Receipts 7,516,062 1,193,758

Payments (113,663,607) (104,110,697)

Employee costs (10,433,837) (19,115,169)

Suppliers (101,543,705) (80,400,798)

Finance costs (267,430) (61,364)

Other payments (1,418,635) (4,533,366)

Net cash flows from operating activities 30 67,774,501 38,925,021

Cash flows from investing activities

Purchase of capital assets (69,993,197) (73,562,384)

Purchases of Intangible assets (377,898) (18,215)

Net cash flows from investing activities (70,371,095) (73,580,599)

Cash flows from financing activities

Finance lease payments (942,107) (1,321,705)

Net cash flows from financing activities (942,107) (1,321,705)

Net increase/(decrease) in cash and cash equivalents (3,538,701) (35,977,284)

Cash and cash equivalents at the beginning of the year

254,655,129 290,632,413

Cash and cash equivalents at the end of the year 3 251,116,428 254,655,129


ACCOUNTING POLICIES

1.01. Presentation of Financial Statements and Basis of preparation

The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) and in the manner prescribed by the Minister of Higher Education and Training in terms of the Continuing Education and Training Act No. 16 of 2006, as amended.

These financial statements have been prepared on an accrual basis of accounting and are in accordance with the historical cost convention as the basis of measurement, unless specified otherwise. They are presented in South African Rand.

Assets, liabilities, revenue and expenses were not offset, except where offsetting is either required or permitted by a Standard of GRAP.

1.02. Presentation currency

These financial statements are presented in South African Rand, which is the functional currency of the college.

1.03. Going concern assumption These financial statements have been prepared based on the expectation that the college will continue to operate as a going concern for at

least the next 12 months.

1.04. Significant judgements and sources of estimation uncertainty The use of judgement, estimates and assumptions is inherent to the process of preparing financial statements. These judgements,

estimates and assumptions affect the amounts presented in the financial statements.

Uncertainties about these estimates and assumptions could result in outcomes that require a material adjustment to the carrying

amount of the relevant asset or liability in future periods.

Judgements In the process of applying these accounting policies, management has made the following judgements that may have a significant

effect on the amounts recognised in the financial statements:

Programme funding Programme funding is allocated to the college by DHET in terms of the CET Act and the National Norms and Standards for

Funding of TVET Colleges and is determined by the estimated Full Time Equivalent Students (FTEs) of the college. The

allocation is done based on the projected FTEs for the year and if the college fails to register the projected FTEs, a portio n of the

programme funding can be clawed back in the following year.

The programme funding is allocated by DHET during their financial year which is from April to March, but for the college the

funds pertain to the college academic and financial year which is from January to December. Once the college has registered the

projected number of FTEs, the condition of the programme funding grant has been met and the grant is recognised in full.

The programme funding is paid out partly in cash tranches, paid to the college, and partly through the Persal system of the

Provincial Education Department, directly to the employees of the college. If management personnel are paid from the

programme funding, they should be included in the description. The method and timing of payment of the grant does, however, not

influence the recognition of revenue.

Employee related costs and DHET management fee In terms of the CET Act and DHET Circular 1 of 2015, with effect from 1 April 2015, all non-management personnel of the

college, appointed and remunerated through the Department of Education in the Province (PERSAL) and the provin cial allocation

or programme funding, have migrated to DHET and are DHET employees. Non-management personnel not remunerated from


provincial allocations or programme funding remain employees of the college as they are appointed by the college. For the per iod

1 January to 31 March 2015, non-management personnel still remained employees of the college.

For the period 1 January to 31 March 2015

Management and other personnel are either remunerated directly by the college or by the provincial Department of Education, via

Persal, on behalf of DHET. As management personnel are not college employees, their remuneration cannot be classified as an

employee expense of the college and is therefore classified as "DHET management fee".

For the period 1 April to 31 December 2015

Management and other personnel (excluding college employees) are remunerated by DHET via Persal. The remuneration of these

personnel cannot be classified as an employee expense of the college and is therefore classified as "DHET management fee".

Estimates Estimates are informed by historical experience, information currently available to management, assumptions, and other factors

that are believed to be reasonable under the circumstances. These estimates are reviewed on a regular basis. Changes in estimates

that are not due to errors are processed in the period of the review and applied prospectively.

In the process of applying the college’s accounting policies the following estimates, were made:

Trade receivables The entity assesses its trade receivables for impairment at the end of each reporting period. In determining whether an impairment

loss should be recorded in surplus or deficit, the entity makes judgements as to whether there is observable data indicating a

measurable decrease in the estimated future cash flows from a financial asset.

The impairment for trade receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted for nation al and

industry-specific economic conditions and other indicators present at the reporting date that correlate with defaults on the

portfolio.

Allowance for slow moving, damaged and obsolete inventory An allowance for stock to write stock down to the lower of cost or net realisable value. Management have made estimates of th e

selling price and direct cost to sell on certain inventory items. The write down is included in the operation surplus note.

Non-financial asset Impairment In testing for, and determining the value-in-use of non-financial assets, management is required to rely on the use of estimates

about the asset’s ability to continue to generate cash flows (in the case of cash-generating assets). For non-cash-generating assets,

estimates are made regarding the depreciated replacement cost, restoration cost, or service units of the asset, depending on the

nature of the impairment and the availability of information

Useful lives and residual values of assets; depreciation and amortisation The entity's management determines the estimated useful lives and related depreciation charges for these assets. These estima tes

are based on industry norms and then adjusted to be entity specific. Management will increase the depreciation charge where

useful lives are less than previously estimated useful lives and vice versa.

Depreciation and amortisation recognised on property, plant and equipment and intangible assets are determined with reference to

the useful lives and residual values of the underlying items. The useful lives and residual values of assets are based on

management’s estimation of the asset’s condition, expected condition at the end of the period of use, its current use, expect ed

future use and the entity’s expectations about the availability of finance to replace the asset at the end of its useful life. In

evaluating the how the condition and use of the asset informs the useful life and residual value management considers the imp act

of technology and minimum service requirements of the assets.

Effective interest rate The entity uses an appropriate interest rate, taking into account guidance provided in the standards, and applying profession al

judgement to the specific circumstances, to discount future cash flows.


1.05 Investment property Investment property is property (land or a building - or part of a building - or both) held to earn rentals or for capital appreciation

or both, rather than for:

- Use in the production or supply of goods or services or for administrative purposes, or

- Sale in the ordinary course of operations.

Owner-occupied property is property held for use in the production or supply of goods or services or for administrative purposes.

Recognition and measurement Investment property is recognised as an asset when it is probable that the future economic benefits or service

potential that are associated with the investment property will flow to the entity, and the cost or fair value of the investment

property can be measured reliably.

Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.

Where investment property is acquired through a non-exchange transaction, its cost is its fair value as at the date of acquisition.

Investment property is carried at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is

provided to write down the cost, less estimated residual value by equal instalments over the useful life of the property. Refer to

Note 9 for the estimated useful lives.

Disposals Investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no

future economic benefits or service potential are expected from its disposal.

Gains or losses arising from the retirement or disposal of investment property is the difference between the net disposal pro ceeds

and the carrying amount of the asset and is recognised in surplus or deficit in the period of retirement or disposal.

Deemed cost When the college initially recognises an asset using the Standards of GRAP, it measures such assets using either cost or fair value

at the date of acquisition (acquisition cost). Where the accounting for assets is incomplete at the start of the reporting year as the

acquisition cost of an asset is not available at that time, acquisition cost is measured using a surrogate value (deemed cost ) at the

date the college adopted the Standards of GRAP (the measurement date). Deemed cost is determined as the fair value of an asset at

the measurement date.

1.06 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or

supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one

reporting period.

Recognition and measurement

The cost of an item of property, plant and equipment is recognised as an asset when:

- it is probable that future economic benefits or service potential associated with the item will flow to the entity; and

- the cost or fair value of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

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

and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are

deducted in arriving at the cost.


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 assets, or a combination of assets

and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item's fair value was not

determinable, it's deemed cost is the carrying amount of the asset(s) given up.

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

condition necessary for it to be capable of operating in the manner intended by management.

Major spare parts and stand by equipment which are expected to be used for more than one period are included in property, plant and

equipment. In addition, spare parts and stand by equipment which can only be used in connection with an item of property, plant and

equipment are accounted for as property, plant and equipment.

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

value. Refer to Note 7 for the estimated useful lives.

The residual value, the useful life and depreciation method of each asset are reviewed at least at of each reporting date. If the

expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. Each part of an item of

property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset.

Derecognition

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits

or service potential expected from the use or disposal 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 loss arising from the derecognition of an item of property, plant and equipment is determined as the

difference between the net disposal proceeds, if any, and the carrying amount of the item.

Deemed cost

When the entity initially recognises an asset using the Standards of GRAP, it measures such assets using either cost or fair value at the

date of acquisition (acquisition cost). Where the acquisition cost of an asset is not available on the adoption of the Standards of GRAP,

acquisition cost is measured using a surrogate value (deemed cost) at the date an entity adopts the Standards of GRAP (measurement

date). Deemed cost is determined as the fair value of an asset at the measurement date.

Refer to note 7 for more information on assets valued at deemed cost.

1.07. Intangible assets An asset is identifiable if it either:

- 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, regardless of whether the

entity intends to do so; or

- arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or

separable from the entity or from other rights and obligations.

A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were in the

form of a contract.

Recognition and measurement An intangible asset is recognised when:

- it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to

the entity; and

- the cost or fair value of the asset can be measured reliably.


The entity assesses the probability of expected future economic benefits or service potential using reasonable and supportabl e

assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the

asset.

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

its fair value as at that date.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseea ble limit

to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for

these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may b e

impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an

indicator that the asset may be impaired. As a result the asset is tested 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 not recognised as

intangible assets.

Internally generated goodwill is not recognised as an intangible asset.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values. Refer to Note 8 for

the estimated useful live

Derecognition Intangible assets are derecognised:

- on disposal; or

- when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss is the difference between the net disposal proceeds, if any, and the carrying amount. It is recognised in su rplus or

deficit when the asset is derecognised.

Deemed cost When the entity initially recognises an asset using the Standards of GRAP, it measures such assets using either

cost or fair value at the date of acquisition (acquisition cost). Where the acquisition cost of an asset is not available on the adoption

of the Standards of GRAP, acquisition cost is measured using a surrogate value (deemed cost) at the date an entity adopts the

Standards of GRAP (measurement date). Deemed cost is determined as the fair

value of an asset at the measurement date.

Refer to note 8 for more information on assets valued at deemed cost.

1.08 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest

of another entity.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is

measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective int erest


method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the

use of an allowance account) for impairment or uncollectibility.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge

an obligation.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in

foreign exchange rates.

Derecognition is the removal of a previously recognised financial asset or financial liability from an entity’s statement of financial

position.

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

financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period. The

effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected li fe of the

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

When calculating the effective interest rate, an entity shall estimate cash flows considering all contractual terms of the f inancial

instrument (for example, prepayment, call and similar options) but shall not consider future credit losses. The calculation i ncludes

all fees and points paid or received between parties to the contract that are an integral part of the effective in terest rate (see the

Standard of GRAP on Revenue from Exchange Transactions), transaction costs, and all other premiums or discounts. There is a

presumption that the cash flows and the expected life of a group of similar financial instruments can be estimated reliably.

However, in those rare cases when it is not possible to reliably estimate the cash flows or the expected life of a financial

instrument (or group of financial instruments), the entity shall use the contractual cash flows over the full contrac tual term of the

financial instrument (or group of financial instruments).

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

arm’s length transaction

A financial asset is:

cash;

a residual interest of another entity; or

a contractual right to:

- receive cash or another financial asset from another entity; or

- exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the

entity.

A financial liability is any liability that is a contractual obligation to:

- deliver cash or another financial asset to another entity; or

- exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in

market interest rates.

Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financial

liabilities that are settled by delivering cash or another financial asset.

Loan commitment is a firm commitment to provide credit under pre-specified terms and conditions. Loans payable are financial

liabilities, other than short-term payables on normal credit terms.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market

prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of cha nges in

market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors


specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the

market.

A financial asset is past due when a counterparty has failed to make a payment when contractually due.

Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or

financial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed

of the financial instrument.

Financial instruments at amortised cost are non-derivative financial assets or non-derivative financial liabilities that have fixed or

determinable payments, excluding those instruments that:

- the entity designates at fair value at initial recognition; or

- are held for trading.

Financial instruments at cost are investments in residual interests that do not have a quoted market price in an active market, and

whose fair value cannot be reliably measured.

Financial instruments at fair value comprise financial assets or financial liabilities that are:

- derivatives;

- combined instruments that are designated at fair value;

- instruments held for trading. A financial instrument is held for trading if:

- it is acquired or incurred principally for the purpose of selling or repurchasing it in the near-term; or

- on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which

- there is evidence of a recent actual pattern of short term profit-taking;

- non-derivative financial assets or financial liabilities with fixed or determinable payments that are designated at fair value

at initial recognition; and

- financial instruments that do not meet the definition of financial instruments at amortised cost or financial instruments at cost.

Classification

The entity has the following types of financial assets (classes and category) as reflected on the face of the statement of financial

position or in the notes thereto:

Class Category

Cash and cash equivalents Financial asset measured at amortised c ost

Receivables from exchange transactions Financial asset measured at amortised cost

Receivables from non-exchange transactions Financial asset measured at amortised cost

The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial

position or in the notes thereto:

Class Category

Trade and other payables Financial liability measured at amortised cost

Finance leases Financial liability measured at amortised cost

Initial recognition

The entity recognises a financial asset or a financial liability in its statement of financial position when the entity becomes a party

to the contractual provisions of the instrument.

The entity recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities

The entity measures a financial asset and financial liability initially at its fair value plus transaction costs that are

directly attributable to the acquisition or issue of the financial asset or financial liability.


Subsequent measurement of financial assets and financial liabilities

The entity measures all financial assets and financial liabilities after initial recognition using the following categories:

- Financial instruments at fair value.

- Financial instruments at amortised cost.

- Financial instruments at cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

Fair value measurement considerations

The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, the entity

establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish what the

transaction price would have been on the measurement date in an arm’s length exchange motivated by normal operating

considerations. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing

parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow

analysis and option pricing models. If there is a valuation technique commonly used by market participants to price the instr ument

and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the entity

uses that technique. The chosen valuation technique makes maximum use of market inputs and relies as little as possible on en tity-

specific inputs. It incorporates all factors that market participants would consider in setting a price and is consistent with accepted

economic methodologies for pricing financial instruments. Periodically, an entity calibrates the valuation technique and test s it for

validity using prices from any observable current market transactions in the same instrument (i.e. without modification or

repackaging) or based on any available observable market data.

The fair value of a financial liability with a demand feature (e.g. a demand deposit) is not less than the amount payable on demand,

discounted from the first date that the amount could be required to be paid.

Reclassification The entity does not reclassify a financial instrument while it is issued or held unless it is:

- combined instrument that is required to be measured at fair value; or

- an investment in a residual interest that meets the requirements for reclassification.

Where the entity cannot reliably measure the fair value of an embedded derivative that has been separated from a host contract that

is a financial instrument at a subsequent reporting date, it measures the combined instrument at fair value. This requires a

reclassification of the instrument from amortised cost or cost to fair value.

If fair value can no longer be measured reliably for an investment in a residual interest measured at fair value, the entity

reclassifies the investment from fair value to cost. The carrying amount at the date that fair value is no longer available b ecomes

the cost.

If a reliable measure becomes available for an investment in a residual interest for which a measure was previously not available,

and the instrument would have been required to be measured at fair value, the entity reclassifies the instrument from cost to fair

value.

Gains and losses A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value

is recognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit

when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectibility of financial assets The entity assess at the end of each reporting period whether there is any objective evidence that a financial asset or group of

financial assets is impaired.

Financial assets measured at amortised cost:


If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount

of the loss is measured as the difference between the asset’s carrying amount and the

present value of estimated future cash flows (excluding future credit losses that have not been incurred)

discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced directly OR through

the use of an allowance account. The amount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event

occurring after the impairment was recognised, the previously recognised impairment loss

is reversed directly OR by adjusting an allowance account. The reversal does not result in a carrying amount of the financia l asset

that exceeds what the amortised cost would have been had the impairment not been recognised at

the date the impairment is reversed. The amount of the reversal is recognised in surplus or deficit.

Derecognition of Financial assets The entity derecognises financial assets using trade date accounting. The entity derecognises a financial asset only when:

- the contractual rights to the cash flows from the financial asset expire, are settled or waived;

- the entity transfers to another party substantially all of the risks and rewards of ownership of the financial; or

- the entity, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control

of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third

party, and is able to exercise that ability unilaterally and without needing to impose addit ional restrictions on the transfer. In

this case, the entity:

• derecognise the asset; and

• recognise separately any rights and obligations created or retained in the transfer.

The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those transferred on the

basis of their relative fair values at the transfer date. Newly created rights and obligations are measured at their fair val ues at that

date. Any difference between the consideration received and the amounts recognised and derecognised is recognised in surplus or

deficit in the period of the transfer.

If the entity transfers a financial asset in a transfer that qualifies for derecognition in its entirety and retains the righ t to service the

financial asset for a fee, it recognise either a servicing asset or a servicing liability for that servicing contract. If the fee to be

received is not expected to compensate the entity adequately for performing the servicing, a servicing liability for the serv icing

obligation is recognised at its fair value. If the fee to be received is expected to be more than adequate compensation for t he

servicing, a servicing asset is recognised for the servicing right at an amount determined on the basis of an allocation o f the

carrying amount of the larger financial asset.

If, as a result of a transfer, a financial asset is derecognised in its entirety but the transfer results in the entity obtai ning a new

financial asset or assuming a new financial liability, or a servicing liability, the entity recognise the new financial asset, financial

liability or servicing liability at fair value.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consider ation

received is recognised in surplus or deficit.

If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognition in its enti rety, the

previous carrying amount of the larger financial asset is allocated between the part that continues to be recognised and the part that

is derecognised, based on the relative fair values of those parts, on the date of the transfer. For this purpose, a retained servicing

asset is treated as a part that continues to be recognised. The difference between the carrying amount allocated to the part

derecognised and the sum of the consideration

received for the part derecognised is recognised in surplus or deficit.

If a transfer does not result in derecognition because the entity has retained substantially all the risks and rewards of ownership of

the transferred asset, the entity continue to recognise the transferred asset in its entirety and recognise a financial liabi lity for the

consideration received. In subsequent periods, the entity recognises any revenue on the transferred asset and any expense incurred

on the financial liability. Neither the asset, and the associated liability nor the revenue, and the associated expenses are offset.

Derecognition of Financial liabilities The entity removes a financial liability (or a part of a financial liability) from its statement of financial position when


it is extinguished — i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.

An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as

having extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial mo dification

of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability

and having recognised a new financial liability.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to

another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus

or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are

accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers).

Presentation Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or

expense in surplus or deficit.

Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense

in surplus or deficit.

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position when

the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to

realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the entity does not offset the transferred

asset and the associated liability.

1.09 Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is

classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and building elements, the college assesses the classification of each element separately.

Finance leases - lessee Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the

leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is i ncluded

in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance cha rge

is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability.

Any contingent rents are expensed in the period in which they are incurred.

1.10 Inventories Inventories are assets:

- in the form of materials or supplies to be consumed in the production process;

- in the form of materials or supplies to be consumed or distributed in the rendering of services;

- held for sale or distribution in the ordinary course of operations; or

- in the process of production for sale or distribution

Recognition and measurement Inventories are recognised as an asset if:

- it is probable that future economic benefits or service potential associated with the item will flow to the entity; and


- the cost of the inventories can be measured reliably

Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their

costs are their fair value as at the date of acquisition.

Subsequently inventories are measured at the lower of cost and net realisable value.

Inventories are measured at the lower of cost and current replacement cost where they are held for;

- distribution through a non-exchange transaction; or

- consumption in the production process of goods to be distributed at no charge or for a nominal charge.

Net realisable value is the estimated selling price in the ordinary course of operations less the estimated costs of completi on and the

estimated costs necessary to make the sale, exchange or distribution.

Current replacement cost is the cost the entity incurs to acquire the asset on the reporting date.

The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to

their present location and condition.

The cost of inventories is assigned using the first-in, first-out. The same cost formula is used for all inventories having a similar

nature and use to the entity.

Recognition as an expense When inventories are sold, the carrying amounts of those inventories are recognised as an expense in the period

in which the related revenue is recognised. If there is no related revenue, the expenses are recognised when the goods are

distributed, or related services are rendered. The amount of any write-down of inventories to net realisable value or current

replacement cost and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount

of any reversal of any write-down of inventories, arising from an increase in net realisable value or current replacement cost, are

recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

1.11 Impairment of cash-generating assets Cash-generating assets are those assets held by the college with the primary objective of generating a commercial return. When an

asset is deployed in a manner consistent with that adopted by a profit-orientated college, it generates a commercial return.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognit ion of

the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

“Identification When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired.

The college assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such

indication exists, the college estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the college also test a cash-generating intangible asset with an

indefinite useful life or a cash-generating intangible asset not yet available for use for impairment annually by comparing its

carrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangible asset

was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the

current reporting period.

Value in use Value in use of a cash-generating asset is the present value of the estimated future cash flows expected to be derived from the

continuing use of an asset and from its disposal at the end of its useful life.


When estimating the value in use of an asset, the college estimates the future cash inflows and outflows to be derived from

continuing use of the asset and from its ultimate disposal and the college applies the appropriate discount rate to those future cash

flows.

Basis for estimates of future cash flows In measuring value in use the entity:

- base cash flow projections on reasonable and supportable assumptions that represent management's best estimate of the

range of economic conditions that will exist over the remaining useful life of the asset. Greater weight is given to external

evidence;

- base cash flow projections on the most recent approved financial budgets/forecasts, but excludes any estimated future cash

inflows or outflows expected to arise from future restructuring's or from improving or enhancing the asset's performance.

Projections based on these budgets/forecasts covers a maximum period of five years, unless a longer period can be justified;

and

- estimate cash flow projections beyond the period covered by the most recent budgets/forecasts by extrapolating the

projections based on the budgets/forecasts using a steady or declining growth rate for subsequent years, unless an increasing

rate can be justified. This growth rate does not exceed the long-termaverage growth rate for the

- products, industries, or country or countries in which the entity operates, or for the market in which the asset is used, unless

a higher rate can be justified.

Discount rate The discount rate is a pre-tax rate that reflects current market assessments of the time value of money,

represented by the current risk-free rate of interest and the risks specific to the asset for which the future cash flow estimates

have not been adjusted.

Recognition and measurement (individual asset) If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is

reduced to its recoverable amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit.

When the amount estimated for an impairment loss is greater than the carrying amount of the cash-generating asset to which it

relates, the entity recognises a liability only to the extent that is a requirement in the Standard of GRAP.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the cash-generating asset is adjusted in

future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic

basis over its remaining useful life.

Cash-generating units If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not

possible to estimate the recoverable amount of the individual asset, the entity determines the

recoverable amount of the cash- generating unit to which the asset belongs (the asset's cash-generating unit).

If an active market exists for the output produced by an asset or group of assets, that asset or group of assets is identifie d as a

cash-generating unit, even if some or all of the output is used internally. If the cash inflows generated by any asset or cash-

generating unit are affected by internal transfer pricing, the entity use management's best estimate of future price(s) that could

be achieved in arm's length transactions in estimating:

- the future cash inflows used to determine the asset's or cash-generating unit's value in use; and

- the future cash outflows used to determine the value in use of any other assets or cash-generating units that are affected

by the internal transfer pricing.

Cash-generating units are identified consistently from period to period for the same asset or types of assets, unless a change is

justified.


The carrying amount of a cash-generating unit is determined on a basis consistent with the way the recoverable amount of the

cash-generating unit is determined.

An impairment loss is recognised for a cash-generating unit if the recoverable amount of the unit is less than the carrying

amount of the unit. The impairment is allocated to reduce the carrying amount of the cash-generating assets of the unit on a

pro rata basis, based on the carrying amount of each asset in the unit. These reductions in carrying amounts are treated as

impairment losses on individual assets.

In allocating an impairment loss, the entity does not reduce the carrying amount of an asset below the highest of:

- its fair value less costs to sell (if determinable);

- its value in use (if determinable); and

- zero

The amount of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other

cash-generating assets of the unit.

Where a non-cash-generating asset contributes to a cash-generating unit, a proportion of the carrying amount of that non-

cash-generating asset is allocated to the carrying amount of the cash-generating unit prior to estimation of the recoverable

amount of the cash-generating unit.

Reversal of impairment loss

The entity assess at each reporting date whether there is any indication that an impairment loss recognised in

prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity

estimates the recoverable amount of that asset.

An impairment loss recognised in prior periods for a cash-generating asset is reversed if there has been a change in the

estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying

amount of the asset is increased to its recoverable amount. The increase is a reversal of an impairment loss. The increased

carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would

have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior

periods.

A reversal of an impairment loss for a cash-generating asset is recognised immediately in surplus or deficit. Any reversal of an

impairment loss of a revalued cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the cash- generating asset is

adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a

systematic basis over its remaining useful life.

A reversal of an impairment loss for a cash-generating unit is allocated to the cash-generating assets of the unit pro rata with

the carrying amounts of those assets. These increases in carrying amounts are treated as reversals of impairment losses for

individual assets. No part of the amount of such a reversal is allocated to a non-cash- generating asset contributing service

potential to a cash-generating unit.

In allocating a reversal of an impairment loss for a cash-generating unit, the carrying amount of an asset is not increased above

the lower of:

- its recoverable amount (if determinable); and

- the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been

recognised for the asset in prior periods.

The amount of the reversal of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to

the other assets of the unit.


1.12 Impairment of non-cash-generating assets

Cash-generating assets are those assets held by the entity with the primary objective of generating a commercial return. When

an asset is deployed in a manner consistent with that adopted by a profit-orientated entity, it generates a commercial return.

Non-cash-generating assets are assets other than cash-generating assets.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognit ion

of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Identification When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.

The entity assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If

any such indication exists, the entity estimates the recoverable service amount of the asset.

Irrespective of whether there is any indication of impairment, the entity also test a non-cash-generating intangible asset with

an indefinite useful life or a non-cash-generating intangible asset not yet available for use for

impairment annually by comparing its carrying amount with its recoverable service amount. This impairment test is performed

at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangibl e

asset was tested for impairment before the end of the current reporting period.

Value in use Value in use of non-cash-generating assets is the present value of the non-cash-generating assets remaining

service potential.

The present value of the remaining service potential of a non-cash-generating assets is determined using the following

approach:

Depreciated replacement cost approach The present value of the remaining service potential of a non-cash-generating asset is determined as the

depreciated replacement cost of the asset. The replacement cost of an asset is the cost to replace the asset’s gross service

potential. This cost is depreciated to reflect the asset in its used condition. An asset may be replaced either through

reproduction (replication) of the existing asset or through replacement of its gross service potential. The depreciated

replacement cost is measured as the reproduction or replacement cost of the asset, whichever is lower, less accumulated

depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset.

The replacement cost and reproduction cost of an asset is determined on an “optimised” basis. The rationale is that the entity

would not replace or reproduce the asset with a like asset if the asset to be replaced or reproduced is an overdesigned or

overcapacity asset. Overdesigned assets contain features which are unnecessary for the goods or services the asset provides.

Overcapacity assets are assets that have a greater capacity than is necessary to meet the demand for goods or services the asset

provides. The determination of the replacement cost or reproduction cost of an asset on an optimised basis thus reflects the

service potential required of the asset.

Recognition and measurement

If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the

asset is reduced to its recoverable service amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit.

When the amount estimated for an impairment loss is greater than the carrying amount of the non-cash-generating asset to

which it relates, the entity recognises a liability only to the extent that is a requirement in the Standards of GRAP.


After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset is

adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any),

on a systematic basis over its remaining useful life.

Reversal of an impairment loss The entity assess at each reporting date whether there is any indication that an impairment loss recognised in prior periods for

a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the

recoverable service amount of that asset.

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the

estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. The

carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss.

The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount

that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in

prior periods.

A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit. Any reversal

of an impairment loss of a revalued non-cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash- generating asset

is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if

any), on a systematic basis over its remaining useful life.

1.13 Employee benefits Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees.

Other long-term employee benefits are employee benefits (other than post-employment benefits and termination benefits) that

are not due to be settled within twelve months after the end of the period in which the employees

render the related service.

Short-term employee benefits Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled

within twelve months after the end of the period in which the employees render the related service.

When an employee has rendered service to the entity during a reporting period, the entity recognise the undiscounted amount

of short-term employee benefits expected to be paid 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 recognise that excess as an asset (prepaid expense) to the extent that the

prepayment will lead to, for example, a reduction in future payments or a cash refund; and

- as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

Other long-term employee benefits Other long-term employee benefits includes:

- other long service benefits;

The amount recognised as a liability for other long-term employee benefits the net total of the following amounts: the present

value of the defined benefit obligation at the reporting date minus the fair value at the reporting date of plan assets (if a ny) out

of which the obligations are to be settled directly

For other long-term employee benefits, the entity recognise the net total of the following amounts as expense or revenue,

except to the extent that another Standard requires or permits their inclusion in the cost of an asset:

- current service cost;

- interest cost;

- the expected return on any plan assets and on any reimbursement right recognised as an asset;

- actuarial gains and losses, which shall all be recognised immediately;

- past service cost, which shall all be recognised immediately; and


- the effect of any curtailments or settlements

DHET management fee In terms of the CET Act, the college is the employer of the non-management personnel. The management personnel, defined

in the CET Act as the principal and deputy principals, have migrated to DHET and are DHET employees.

Management and other personnel are either remunerated directly by the college or by the provincial Department of Education,

via Persal, on behalf of DHET. As management personnel are not college employees, their remuneration cannot be classified

as an employee expense of the college and is therefore classified as "DHET management fee".

1.14 Provisions and contingencies A provision is a liability of uncertain timing or amount. A contingent liability is:

- a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-

occurrence of one or more uncertain future events not wholly within the control of the entity; or

- a present obligation that arises from past events but is not recognised because:

- it is not probable that an outflow of resources embodying economic benefits or service potential will be required to settle

the obligation; or

- the amount of the obligation cannot be measured with sufficient reliability

Provisions are recognised when:

- the entity has a present obligation as a result of a past event;

- it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the

obligation; and

- a reliable estimate can be made of the obligation

The amount of a provision is the best estimate of the expenditure expected to be required to settle the p resent obligation at the

reporting date.

Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures

expected to be required to settle the obligation.

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to

the liability.

A provision is used only for expenditures for which the provision was originally recognised. Provisions are not recognised fo r

future operating deficits.

1.15 Revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result i n

an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the college receives assets or services, or has liabilities extinguished,

and directly gives approximately equal value (primarily in the form of cash, goods, services or use of assets) to the other p arty

in exchange.

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

in an arm’s length transaction.

Measurement Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and

volume rebates.

Rendering of services


When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the

transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a

transaction can be estimated reliably when all the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits or service potential associated with the transaction will flow to the entity;

- the stage of completion of the transaction at the reporting date can be measured reliably; and

- the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When services are performed by an indeterminate number of acts over a specified time frame, revenue is recognised on a

straight line basis over the specified time frame unless there is evidence that some other method better represents the stage of

completion. When a specific act is much more significant than any other acts, the recognition of revenue is postponed until t he

significant act is executed.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised

only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date.

Interest and tuition fees

Revenue arising from the use by others of entity assets yielding interest is recognised when:

- It is probable that the economic benefits or service potential associated with the transaction will flow to the entity, and

- The amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method. Tuition fees are recognised over the period

of instruction.

1.16 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by an entity, which

represents an increase in net assets, other than increases relating to contributions from owners.

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

directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in

exchange.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction,

an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives

value to another entity without directly receiving approximately equal value in exchange.

Recognition

An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent

that a liability is also recognised in respect of the same inflow.

As the entity satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non- exchange

transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of

revenue equal to that reduction.

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity.

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 a liabi lity.

Where a liability is required to be recognised it will be measured as the best estimate of the amount required to se ttle the


obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability is

subsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the liability

is recognised as revenue.

Transfers Apart from Services in kind, which are only recognised as indicated below, the entity recognises an asset in

respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an

asset.

The entity recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and sat isfy

the criteria for recognition as an asset.

Transferred assets are measured at their fair value as at the date of acquisition.

Gifts and donations, including goods in-kind

Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the future

economic benefits or service potential will flow to the entity and the fair value of the assets can be measured

reliably.

Services in-kind

"In terms of the CET Act, the college is the employer of the non-management personnel. The management

personnel, defined in the CET Act as the principal and deputy principals, have migrated to DHET and are DHET

employees.

Management personnel are remunerated from provincial funds and not from college funds, and this constitutes services in

kind which are recognised at the cash value of the services to the State. The income is recognised as ""Services in kind"" as

part of revenue from non-exchange transactions, and the expense is recognised as ""DHET management fee"".

No other services in-kind are recognised."

1.17 Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

1.18 Comparative figures When the presentation or classification of items in the financial statements is amended due to better presentation and/or bet ter

understandability and/or comparability and/or due to the implementation of a new or amended standard, prior period

comparative amounts are reclassified. Where accounting errors have been identified in the current year, the correction is mad e

retrospectively as far as is practicable, and the prior year comparatives are restated accordingly. Where there has been a

change in accounting policy in the current year, the adjustment is made retrospectively as far as is practicable, and the pri or

year comparatives are restated accordingly.

1.19 Related parties

A related party is a person or an college with the ability to control or jointly control the other party, or exercise signifi cant

influence over the other party, or vice versa, or an college that is subject to common control, or joint control. In considering

each possible related party relationship, attention is directed to the substance of the relationship, and not merely the lega l

form.

Significant influence may be exercised in several ways, usually by representation on the governing body but also, for example,

by participation in the policy-making process, material transactions between entities within an economic college, interchange

of managerial personnel or dependence on technical information.

Significant influence may be gained by an ownership interest, statute or agreement or otherwise. With regard to an ownership

interest, significant influence is presumed in accordance with the definition contained in the Standard of GRAP on

Investments in Associates.


Management are those persons responsible for planning, directing and controlling the activities of the college, including those

charged with the governance of the college in accordance with legislation, in instances where they are required to perform

such functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, or be

influenced by, that management in their dealings with the college.

Only transactions with related parties not at arm’s length or not in the ordinary course of business are disclosed.

1.20 Commitments

The college discloses each class of capital assets (PPE, Investment properties, Intangible assets, Biological assets and Heri tage

assets) recognized in the financial statements as well as future minimum lease payments under non-cancellable operating

leases for each of the following periods:

- Not later than one year,

- Later than one year and not later than five years, and

- Later than five years.

1.21 Events after the reporting date

Events after the reporting date are those events, both favourable and unfavourable, that occur between the reporting date and

the date when the financial statements are authorised for issue. Two types of events can be identified:

- 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).

Reporting date means the date of the last day of the reporting period to which the financial statements relate. The reporting

date of the college is 31 December 2015. The college adjusts the amounts recognised in its financial statements to re flect

adjusting events after the reporting date. The college does not adjust the amounts recognised in its financial statements to

reflect non- adjusting events after the reporting date.

Standards, amendments to Standards, Directives and Interpretations issued but not yet effective

The following GRAP and / or amendments thereto have been approved by the Accounting Standards Board, but

will only become effective in future periods or have not been given an effective date by the Minister of Finance.

The college has not early-adopted any of these new Standards or amendments thereto, but has referred to them

for guidance in the development of accounting policies in accordance with GRAP 3 as read with Directive 5:

Title of the standard and nature of impending changes in

accounting policy and expected impact

Effective date

(Periods starting

on or after)

Financial year in

which the College

plans to apply the

Standard initially

GRAP16 Investment Property: Clarification of conditions necessary

to classify property as investment property. Increased disclosure

relating to Repairs and Maintenance and Long-overdue projects.

01 April 2016 31 December 2017

GRAP17 Property, Plant and Equipment: Increased disclosure

relating to Repairs and Maintenance and Long-overdue projects.

Encouraged disclosure removed.

01 April 2016 31 December 2017

GRAP20 Related Party Disclosures: Currently use it as guidance for

accounting policies, therefore no impact expected on initial adoption.

Not yet set Not yet set


GRAP32 Service Concession Arrangements: Grantor: None Not yet set Not yet set

GRAP108 Statutory Receivables: No changes to recognition and

measurement are expected, but additional disclosures and separate

classification in the notes will be done on adoption.


GRAP109 Accounting by Principals and Agents: No changes to

recognition and measurement are expected, but additional disclosures

in the notes will be done on adoption.


IGRAP 17 Interpretation of the Standard of GRAP on Service

Concession Arrangements Where a Grantor Controls a Significant

Residual Interest in an Asset: None


Directive12 The Selection of an Appropriate Reporting

Framework by Public Entities: None

01 April 2018

31 December 2019 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

3. Cash and cash equivalents

Cash and cash equivalents consist of the following:

Cash on hand - -

Cash at bank 3,368,330 3,151,510

Call accounts 247,748,099 251,503,619

251,116,428 254,655,129

The college has the following bank accounts:

ABSA

Account Number : 40-5539-2078

Cash book balance at beginning of year 3,151,510 5,544,040

Cash book balance at end of year 3,368,330 3,151,510

Bank statement balance at beginning of year

3,151,510 5,544,040

Bank statement balance at end of year 3,368,330 3,151,510

ABSA

Account Number : 210164081

Cash book balance at beginning of year - -

Cash book balance at end of year - -

Bank statement balance at beginning of year

- -

Bank statement balance at end of year - -

ABSA





Bank statement balance at beginning of year - -


ABSA






ABSA






ABSA






ABSA






ABSA







Cash on hand - -

Call accounts 247,748,099 251,503,619

Total cash and cash equivalents 251,116,428 254,655,129

Cash and cash equivalents pledged as collateral

No cash and cash equivalents were pledged as collateral.

4. Trade and other receivables from exchange transactions

Gross Balances

Provision for Doubtful Debts

Net Balance

31 December 2016 R R R

Student debtors 43,088,924 -34,466,680 8,622,243

Prepayments 1,898,946 - 1,898,946

Creditors with debit balances 2,675,130 - 2,675,130

Staff advances 442,042 -416,675 25,367

Other trade receivables 3,151,133 -755,800 2,395,333

Total trade and other receivables 51,256,175 (35,639,155) 15,617,020

Gross Balances Provision for Doubtful Debts

Net Balance

31 December 2015 R R R

Student debtors 25,240,178 -17,696,660 7,543,518

Prepayments 1,231,379 - 1,231,379

Staff advances 437,670 -413,315 24,355

Creditors with debit balances 293,758 - 293,758

Other trade receivables 3,178,365 -172,323 3,006,041

Total trade and other receivables 30,381,350 (18,282,298) 12,099,052

Students: Ageing

Current (0 – 30 days) - -


31 - 60 Days 518,634 232,646

61 - 90 Days 1,099,732 386,749

91 - 120 Days 1,566,673 284,064

121 + Days 39,903,885 24,336,720

Total 43,088,924 25,240,178

Staff advances: Ageing

Current (0 – 30 days) - -

31 - 60 Days 166 494

61 - 90 Days 1,776 1,699

91 + Days 440,100 435,478

Total 442,042 437,670

Reconciliation of the provision for debt impairment

Balance at beginning of the year 18,282,298 8,570,330

Contributions to provision 17,356,857 9,711,968

Balance at end of year 35,639,155 18,282,298

Bad debts write off

Amounts written off during the year - student debtors

(10,669,438) (2,807,702)

Long outstanding student debtors relating to student accounts prior to 2013 financial year were written off during the year.

Fair value of trade and other receivables

The carrying value of trade and other receivables approximates their fair value. The approach used to determine the fair value is to individually assess receivables based on material amounts and to separate students with bursaries from those who are self funded.

Trade and other receivables from exchange transactions pledged as security

No Trade and other receivables from exchange transactions were pledged as security.

5. Other receivables from non-exchange

transactions, including transfers


Related party receivables - 4,474,350

Other receivables 22,228,000 24,442,016

Less: Provision for debt impairment - -

Total other debtors 22,228,000 28,916,366

Fair value of other receivables from non-exchange transactions

The carrying value of trade and other receivables approximates their fair value. The approach used to determine the fair value was to individually assess receivables.

Other receivables from non-exchange transactions pledged as security

No other receivables from non-exchange transactions were pledged as security.

6. Inventories

Carrying value of inventory 10,060,647 12,621,209

Consumable stores 10,060,647 12,621,209

Consumable stores include: 10,060,647 12,621,209

Text books 9,489,212 12,621,209

Calculators 571,435 -

Amounts recognised as an expense

The following amounts, related to inventory, were recognised in the statement of financial performance during the year:

Cost of inventory used to provide learning to students in the form of text books and included in the Statement of Financial Performance

17,909,873 11,663,931

Write down of inventory - -

Total amount of Inventories recognised in the statement of financial performance during the year

17,909,873 11,663,931

No inventories were pledged as security.

7. Property, plant and equipment

2016

Cost Accumulated Depreciation and

Impairment

Carrying Value


Land 341,108,781 (55,206,707) 285,902,074

Capital Work in Progress 31,035,095 - 31,035,095

Finance Lease Assets 4,223,765 (1,534,893) 2,688,872

Vehicles 13,902,698 (5,164,493) 8,738,205

Furniture and Fittings 37,016,357 (12,091,986) 24,924,371

Plant, Machinery and Equipment 87,247,638 (29,837,627) 57,410,011

Computer Equipment 29,059,296 (17,426,686) 11,632,610

Library books 1,184,890 (710,934) 473,956

Total 544,778,520 (121,973,326) 422,805,194

2015


Impairment

Carrying Value

R R R

Land 233,174,969 (50,523,307) 182,651,662

Capital Work in Progress 115,479,132 - 115,479,132

Finance Lease Assets 2,635,467 (2,320,537) 314,930

Vehicles 10,481,932 (4,224,882) 6,257,051

Furniture and Fittings 27,420,867 (10,131,052) 17,289,815

Plant, Machinery and Equipment 65,847,376 (23,949,524) 41,897,852

Computer Equipment 22,497,713 (15,788,268) 6,709,445

Library books 1,184,890 (592,445) 592,445

Total 478,722,347 (107,530,015) 371,192,332


Reconciliation of Property Plant and Equipment - 2016

Carrying Value Opening Balance

Additions Transfer Disposals Depreciation Carrying Value Closing Balance

Land 35,763,635 - - - - 35,763,635

Buildings 146,888,028 667,790.96 107,266,020 - (4,683,400) 250,138,439

Capital Work in Progress 115,479,132 38,466,207 -122,910,244 - - 31,035,096

Finance Lease Assets 314,930 3,840,553 - - (1,466,611) 2,688,872

Vehicles 6,257,051 3,420,766 - - (939,612) 8,738,205

Furniture and Fittings 17,289,815 4,852,591 4,783,427 (16,823) (1,984,640) 24,924,371

Plant, Machinery and Equipment 41,897,852 13,988,235 8,264,418 (155,548) (6,584,946) 57,410,011

Computer Equipment 6,709,445 4,757,053 2,596,378 (59,417) (2,370,849) 11,632,610

Library books 592,445 - - - (118,489) 473,956

Total 371,192,332 69,993,197 -0 (231,788) (18,148,547) 422,805,194

Reconciliation of Property Plant and Equipment - 2015


Additions Transfer Disposals Depreciation Carrying Value Closing Balance

Land 35,763,635 -

- - 35,763,635

Buildings 106,897,751

43,318,817 - (3,328,540) 146,888,028

Capital Work in Progress 114,993,246 43,804,703.76 (43,318,817) - - 115,479,132

Finance Lease Assets 919,798 249,672

- (854,541) 314,930

Vehicles 3,528,667 3,556,528

- (828,145) 6,257,051

Furniture and Fittings 13,905,687 5,080,386

- (1,696,257) 17,289,815

Plant, Machinery and Equipment 27,482,999 20,193,519

- (5,778,666) 41,897,852

Computer Equipment 9,077,002 677,574

- (3,045,131) 6,709,445

Library books 710,934 -

- (118,489) 592,445

Total 313,279,719 73,562,384 - - (15,649,770) 371,192,332


Estimated useful lives

The annual depreciation rates are based on the following estimated asset useful lives:

Class Useful Life Range in

Years

Land and Buildings

Land Indefinite Life

Buildings 50 - 70

Other assets

Vehicles 10 - 50

Finance leased assets Shorter of the lease period or useful life of related

assets

Furniture and Fittings 15 - 18

Plant, Machinery and Equipment 7.5 - 15

Computer Equipment 5 - 15

Library books 10

Property, plant and equipment pledged as security

No property, plant and equipment pledged as security.

Other information

Property, plant and equipment that was not used for any period of time during the reporting period that significantly impacted the delivery of goods and services of the entity (Carrying amount)

- -

Fair value of property, plant and equipment carried at cost 422,805,194

371,192,332

Fully depreciated property, plant and equipment still in use - -

- -

Contractual commitments for the acquisition of property, plant and equipment

Refer to commitment note 33.

PPE for which the college does not have the legal title, but has control

Some title of ownership land where buildings are located has not yet been registered in the name of the college following the merger process. The current status of the transfer of ownership title is as follows:

Kathorus Investigation of ownership in progress.


8. Intangible assets

2016

Cost Accumulated Amortisation and

Impairment

Carrying Value

R R R

Computer Software 2,508,149 (1,846,415) 661,734

Total 2,508,149 (1,846,415) 661,734

2015

Cost Accumulated Amortisation and

Impairment

Carrying Value

R R R

Computer Software 2,130,252 (1,681,977) 448,275

Total 2,130,252 (1,681,977) 448,275

Reconciliation of Intangible Assets - 2016


Additions Amortisation Carrying Value Closing Balance

R R R R

Computer Software 448,275 377,898 (164,438) 661,734

Total 448,275 377,898 (164,438) 661,734

Reconciliation of Intangible Assets - 2015


Additions Amortisation Carrying Value Closing Balance

R R R R

Computer Software 716,630 18,215 (286,570) 448,275

Total 716,630 18,215 (286,570) 448,275


The annual amortisation rates are based on the following estimated average asset lives:

Class Useful Life Range in Years


Computer Software 5 - 15 years

9. Investment property

2016


Impairment

Carrying Value

R R R

Villa Bianca - Building S 741,041.10 (326,058) 414,983.04

Villa Bianca - Building T 1,038,465.76 (456,925) 581,540.82

Villa Bianca - Building U 1,184,657.54 (521,249) 663,408.22

Villa Bianca - Building V 1,537,534.26 (676,515) 861,019.18

Total 4,501,699 (1,980,747) 2,520,951

2015


Impairment

Carrying Value

R R R

Villa Bianca - Building S 741,041 (311,237) 429,804

Villa Bianca - Building T 1,038,466 (436,156) 602,310

Villa Bianca - Building U 1,184,658 (497,556) 687,101

Villa Bianca - Building V 1,537,534 (645,764) 891,770

Total 4,501,699 (1,890,713) 2,610,985

Reconciliation of Investment Property - 2016


Depreciation Carrying Value Closing Balance

R R R


Villa Bianca - Building T 602,310 (20,769) 581,541

Villa Bianca - Building U 687,101 (23,693) 663,408

Villa Bianca - Building V 891,770 (30,751) 861,019

Total 2,610,985 (90,034) 2,520,951


Reconciliation of Investment Property - 2015


Depreciation Carrying Value Closing Balance

R R R


Villa Bianca - Building T 623,079 (20,769) 602,310

Villa Bianca - Building U 710,795 (23,693) 687,101

Villa Bianca - Building V 922,521 (30,751) 891,770

Total 2,701,019 (90,034) 2,610,985


The annual depreciation rates are based on the following estimated average asset lives:

Class Useful Life Range in Years

Buildings 50 - 70

Land Indefinite Life

2016 2015

Investment property pledged as security

R R

No investment properties were pledged as security.

Other information

Rental income from investment property 545,062 924,744

Fair value of investment property carried at cost 4,501,699 4,501,699

10. Trade and other payables from exchange transactions


Accrued expenses 7,540,873 3,951,320

Debtors with credit balances 21,230,980 23,530,570

Payments received in advance (53,692) -

Retentions (0) 60,891

Trade creditors 5,012,052 1,962,688

Unallocated receipts 719,103 665,965

Total creditors 34,449,316 30,171,433

Fair value of trade and other payables 34,449,316 30,171,433

Trade and other payables reflect their approximate fair values

11. Provisions

Reconciliation of Movement in Provision - 2016

Long Service Awards

Total

Opening Balance 1,903,000 1,903,000

Current Service Cost 214,000 214,000

Interest Cost 189,000 189,000

Amounts Used (192,968) (192,968)

Change in Provision due to change in Estimation inputs

(18,032) (18,032)

Closing Balance 2,095,000 2,095,000

Non-current provisions 1,665,000 1,665,000

Current portion provisions 430,000 430,000

Reconciliation of Movement in Provision - 2015

Long Service Awards

Total

Opening Balance 1,771,000 1,771,000

Current Service Cost 207,000 207,000

Interest Cost 142,000 142,000

Amounts Used (207,134) (207,134)

Change in Provision due to change in Estimation inputs

(9,866) (9,866)

Closing Balance 1,903,000 1,903,000


Non-current provisions 1,500,000 1,500,000

Current portion provisions 403,000 403,000

Long Service Awards

Long service benefits are awarded by the College in the form of fixed cash amounts (after 10, 15, 20, 25, 30, 35 and 40 years of continuous service). In addition, monetary gesture (fixed cash) amounts are also awarded by the College to staff members who resign for each year of past service of the resigning staff member. Outflows for Long Service awards take place once a year during December, while resignation gratuities are paid during the month the employee leaves service.

The amount or timing of outflows are uncertain and assumptions regarding the following have been made: - Discount Rate: The discount rate was set as the yield of the R208 South African government bond as at the valuation date. The actual yield on the R208 bond was sourced from the RMB Global Markets website on the 31th of December 2016. - Inflation Rate: The actual yield on the R208 and R197 government bonds was sourced from the RMB Global Markets website. Our assumed rate of inflation was set as the assumed value of CPI. The next increase was assumed to take place on 01 January 2017. - Average Retirement Age: The average retirement age for all active employees was assumed to be 63 years. This assumption implicitly allows for ill-health and early retirements 12. Unspent Conditional grants and receipts

Other Unspent Conditional Grants and Receipts

7,921,922 4,865,735

Unspent conditional grant: INSETA (from project income) 1,341,766 87,040

Nat Lottery - 2010 - 646,344

Other 6,580,157 4,132,351

Total Unspent Conditional Grants and Receipts 7,921,922 4,865,735

Non-current portion of unspent conditional grants and receipts - -

Current portion of unspent conditional grants and receipts 7,921,922 4,865,735

Movements during the year

Balance at the beginning of year 4,865,735 10,999,045

Additions during the year 14,247,962 1,069,025

Income recognised during the year (11,191,774) (7,202,335)

7,921,922 4,865,735

13. Finance lease liability

Future Present value


2016 Minimum lease Future finance of future minimum

payments charges lease payments

Amounts payable under finance leases

R R R

Within one year 1,597,744 (274,622) 1,323,121.80

Within two to five years 2,045,923 (141,759) 1,904,164.54

Later than five years - - -

Total future minimum lease payments

3,643,667 (416,381) 3,227,286

Less: Amount due for settlement within 12 months (current portion)

(1,597,744) 274,622 (1,323,122)

Non-current future minimum lease payments

2,045,923 (141,759) 1,904,165

Future Present value

2015 Minimum lease Future finance of future minimum

payments charges lease payments

Amounts payable under finance leases

R R R

Within one year 210,918 (19,577) 191,341.30

Within two to five years 147,467 (9,968) 137,498.86

Later than five years - - -

Total future minimum lease payments

358,385 (29,545) 328,840

Less: Amount due for settlement within 12 months (current portion)

(210,918) 19,577 (191,341)

Non-current future minimum lease payments

147,467 (9,968) 137,499

Contingent rents recognised as an expense - -

Finance Leases consists of the following:

The entity leases some of its equipment under finance leases. The lease terms are for 28 and 36 months. Interest rates range from 8.5% to 9.25%. Interest rates are fixed. No contingent rent is payable Rentals can continue after the lease term has expired. No restrictions are imposed by lease arrangements.

14. Payables from non-exchange


Payables from non-exchange 7,048,575 7,347,261

Other current financial liabilities 7,048,575 7,347,261

15. Tuition and related fees

Tuition fees paid directly by students or private bursaries

Other tuition fees 10,076,320 9,614,191

Tuition fees - Expenses 544 168,120

Tuition fees - students (NCV) 71,853,444 62,235,358

Tuition fees - students (Report 191) 14,411,022 12,347,983

Total Tuition Fees 96,341,330 84,365,652

16. Sale of goods and rendering of services

Rendering of services

SETA projects 10,826 51,500

Restaurant Income 1,471 -

Administration fee 67,500 -

79,797 51,500

Total sale of goods and rendering of services 79,797 51,500

Details

Income received from the SETA in terms of projects performed on its behalf.

17. Rental of facilities and equipment

Other rentals 1,194,505 924,744

Total rentals 1,194,505 924,744

18. Investment income

Interest - Bank 19,911,026 17,643,581

Other interest 6,960 6,136

Total investment income 19,917,986 17,649,717

19. Other income


From exchange transactions

Actuarial gains 18,032 9,866

Bad debts recovered - 208,444

Printing 40,918 37,599

Project income 2,692,170 17,851,641

Grant income 3,170,066 1,594,140

Student support services 108,303 125,795

Study guide income 91,360 149,430

Sundry income 33,936 2,903,349

6,154,785 22,880,263

From non-exchange transactions

Insurance pay-outs 62,182 84,951

Project income 1,060,485 935,046

Grant income 8,021,708 5,608,195

Tender fees 234,000 88,000

Skills Levy Income 788,000 -

Sundry income 1,158 -

10,167,533 6,716,192

20

20. Government grants and subsidies

Reconciliation of Movement - 2016

Balance unspent at

beginning of year

Current year receipts

Conditions met -

transferred to revenue

Conditions still to be

met - remain liabilities

R R R R

Programme funding: Grants paid via Persal 174,654,284 (174,654,284) -

Programme funding: Grants paid cash 44,628,000 (44,628,000) -


Total Government Grant and Subsidies

- 219,282,284 (219,282,284) -

Reconciliation of Movement - 2015

Balance unspent at beginning

of year

Current year receipts

Conditions met - transferred to

revenue

Conditions still to be met -

remain liabilities

R R R R

Programme funding: Grants paid via Persal 136,979,525 (136,979,525) -

Programme funding: Grants paid cash 46,256,000 (46,256,000) -

Total Government Grant and Subsidies -

183,235,525 (183,235,525) -

All government grants received were recognised as revenue during the year.

21. Public contributions and donations

Donations 1,883,933 121,489

Total public contributions and donations 1,883,933 121,489

Reconciliation of conditional contributions

Balance unspent at beginning of year - -

Current year receipts 1,883,933 121,489

Conditions met - transferred to revenue (1,883,933) (121,489)

Conditions still to be met - remain liabilities - -

All contributions received during the year were recognised as revenue.

22. Employee related costs and DHET management fee

Employee related costs

Employee related costs - Salaries and Wages 7,985,641 16,406,765

Employee related costs - Contributions for UIF, pensions and medical aids

1,347,473 1,642,414

Travel, motor car, accommodation, subsistence and other allowances 199,270 420,597

Overtime payments 125,206 122,916

Long-service awards - Current Service Cost 214,000 207,000

Long-service awards - Interest Cost 189,000 142,000

Other employee related costs 565,247 305,478

10,625,837 19,247,169


DHET management fee cost

Employee related costs - Salaries and Wages 163,583,284 136,979,525

163,583,284 136,979,525

Total employee related costs and DHET management fee 174,209,121 156,226,694

23. Debt impairment

Changes in debt impairment provision 17,356,857 3,794,696

17,356,857 3,794,696

24. Depreciation and amortisation

Property, plant and equipment 18,148,547 15,649,770

Intangible assets 164,438 286,570

Investment property 90,034 90,034

18,403,019 16,026,374

25. Repairs and maintenance

Property, plant and equipment 3,976,688 5,758,862

3,976,688 5,758,862

26. Professional services

Cleaning 6,363,834 5,791,423

Legal fees 327,105 1,071,312

Other 1,654,105 1,435,235

Outsourced internal audit fees 216,010 338,013

Security 10,157,836 7,130,583

18,718,889 15,766,566

27. Finance costs


Finance leases 267,430 61,364

267,430 61,364

28. General expenses

Assets < than R1 000 1,362,444 109,779

Audit fees 1,105,248 688,258

Bank charges 484,064 468,943

Cleaning 277,368 278,478

Council fees 309,221 270,428

Debt collection commission 206,557 32,372

Exam registration fees 152,104 227,552

Fuel and oil 514,717 467,068

Insurance 1,622,114 1,641,063

Consultation fees 2,135,570 796,330

Licence fees - vehicles 34,844 29,811

Membership fees 93,093 176,636

Other expenses 4,510,789 1,678,539

Professional fees 447,171 2,710,225

Program costs 8,045,190 5,137,089

Rates & Taxes 1,296,676 1,130,335

Rental of office equipment 975,675 793,010

Skills cost 688,080 547,702

Staff development 2,818,577 2,869,910

Student support services 6,677,621 5,679,035

Subscription & publication 214,056 148,071

Travel, accommodation and entertainment 3,660,516 4,393,962

Uniforms & overalls 36,553 77,551

37,668,245 30,352,147

29. Gain/(Loss) on sale of assets

Property, plant and equipment (231,788) -

(231,788) -

30. Cash flows from operating activities

Surplus/(deficit) for the year 32,340,796 51,240,526

Adjustment for:


Depreciation and amortisation 18,403,019 16,026,374

Movement in provisions 192,000 132,000

Prior year adjustments - (517,406)

Actuarial (gain)/loss (18,032) (9,866)

Debt impairment 17,356,857 3,794,696

Bad debt written off 10,669,438 2,807,702

Government grants and subsidies 163,583,284 136,979,525

DHET management fee cost (163,583,284) (136,979,525)

Gain/loss on sale of assets 231,788 -

79,175,866 73,474,027

Changes in working capital:

(Increase)/decrease in inventories 2,560,562 (9,060,457)

(Increase)/decrease in trade and other receivables from exchange transactions

(20,874,825) (11,852,099)

(Increase)/decrease in other receivables from non-exchange transactions

6,688,366 (11,332,165)

Increase/(decrease) in unspent conditional grants and receipts

4,203,729 (6,133,311)

Increase/(decrease) in trade and other payables from exchange transactions

(4,277,883) (3,518,235)

Increase/(decrease) in payables from non-exchange

298,686 7,347,261

Net cash flows from operating activities 67,774,501 38,925,021

31. Correction of error

2015

R

During the year the following correction of errors occurred: Effect

* Correction of receivable due to transfer of debt owner: A contract with a donor that was recognised incorrectly had to be derecognised as the agreement was transferred to the correct service provider.

Decrease in Receivables Decrease in Revenue


* Correction of debtor due to closure of project: The incorrect amount was recognised for a debtor as the project closed.

Decrease in Receivables Decrease in Revenue

* Asset: Aligning the General Ledger to the Asset register for 2014: The asset register and annual financial statements balanced, but the amounts per category did not agree. A movement between categories on the annual financial statements corrected this.

Decrease in PPE Decrease in Accumulated Surplus

* Correction of non-refundable application fee wrongly allocated to student debtors accounts: Student debtors accounts were credited with an application fee in error. These amounts were reversed from student accounts and allocated to income.

Increase in Receivables Increase in Revenue

* Correction interest not transferred to the Other non-exchange payable: Interest earned on NSF payable's corresponding bank balance vests to NSF.

Increase in Other non-exchange payable Decrease in Accumulated Surplus

* Correction of work-in-progress transferred to buildings as well as accumulated depreciation: A project included in work-in-progress was completed in 2015 but not transferred to PPE. This has been adjusted.

Increase in PPE Decrease in WIP Increase in Depreciation Increase in Accumulated Depreciation

* Correction of accrual not raised: Not all invoices were accounted for as payable by the yearend. These invoices were added to the balances outstanding retrospectively.

Increase in Payables Increase in Expenditure

* Correction of classification of project and grant income: Project and grant income were wrongly classified as revenue from non-exchange.

Increase in Other Income (Revenue from exchange transactions) Decrease in Other Income (Revenue from non-exchange transactions)

* Correction of classification of Learnership project stipends: Learnership project stipends were wrongly processed to Employee related costs and DHET management fee.

Increase in Learnership project stipends Decrease in Employee related costs and DHET management fee


The comparative amount has been restated as follows:

Statement of financial position

Property, Plant & Equipment 94,094

Trade & Other Receivables from Exchange Transactions

(999,640)

Unspent Conditional Grants and Receipts 3,267,356

Trade and other payables from exchange transactions

3,527,493

Payables from non-exchange (7,347,261)

(1,457,958)

Statement of financial performance

Tuition and related fees (330,657)

Other Income (Revenue from exchange transactions)

(19,445,781)

Other Income (Revenue from non-exchange transactions)

20,471,641

Employee related costs and DHET management fee

(5,477,984)

Debt impairment (2,807,702)

Depreciation & Amortisation 193

Bad debts written off 2,807,702

Learnership project stipends 5,477,984

General Expenses 245,157

940,552

Net effect on Accumulated surplus opening balance

517,406

As a result of the above changes the notes to the financial statements have also changed.

Related parties

* The NSFAS and National Lottery balances were omitted in the previous year.

* The grant received from Department of Higher Education and Training were not accurately disclosed.


2015

2015 Change

Restated

Amounts included in Receivable (Payable) regarding related parties

National Student Financial Aid Scheme (NSFAS)

4,474,350 - 4,474,350

Government grants

Department of Higher Education and Training 183,235,525 - 183,235,525

National Lottery (646,344) - (646,344)

Amounts included in (Income)/expense regarding related parties

National Lottery (805,280) - (805,280)

32. Change in estimate

During the year the following changes were made to the estimations employed in the accounting for transactions, assets, liabilities, events and circumstances:

Value derived using the original estimate

Value derived using amended estimate

Value impact of change in estimate

Change in depreciation / amortisation resulting from reassessment of useful lives. The following categories are affected:

2,006,513 856,070 1,150,443

Vehicles - from 120 months to a maximum of 144

121,233 46,442 74,792

Furniture & Fittings - from 180 months to a maximum of 204

7,437 3,137 4,300


Plant, Machinery & Equipment - from 120 months to a maximum of 144

409,430 168,515 240,915

Computer Equipment - from 60 months to a maximum of 84

1,261,984 567,674 694,310

Intangible Assets - from 60 months to a maximum of 84

206,429 70,302 136,126

33. Commitments

COMMITMENTS IN RESPECT OF CAPITAL EXPENDITURE

- Approved and contracted for 60,903,250 32,010,126

Property, Plant and Equipment 60,903,250 32,010,126

Buildings 40,072,802 29,693,343

Furniture & Fittings 3,585,816 1,869,338

Plant, Machinery & Equipment 17,244,632 447,445

- Approved but not yet contracted for - -

Property, Plant and Equipment - -

Buildings - -

Equipment - -

Total capital commitments 60,903,250 32,010,126

The capital commitments will be financed from

- Own resources 60,903,250 32,010,126

60,903,250 32,010,126

COMMITMENTS IN RESPECT OF OPERATIONAL EXPENDITURE

- Approved and contracted for 48,500,728 14,790,412

Services 48,500,728 14,790,412

- Approved but not yet contracted for 26,735,121 -

Services 26,735,121 -

Total operational commitments 75,235,849 14,790,412


The operational commitments will be financed from

- Own resources 75,235,849 14,790,412

75,235,849 14,790,412

34. Contingent liabilities

Non re-newal of fixed term contract - -

Difficult to estimate applicant's compensation since matters are still pending a review before Labour Court.

SAFETSA - Interdict - -

Matters are still pending before Court.

35. Related parties

• Members of key management Day to day management of the EWC TVET

• Council members Significant influence

• Department of Higher Education and Training

Responsible government department

• National Skills Fund Under common control DHET

• SETA's Under common control DHET

• Department of Military Veterans Under the same government sphere

• TVET College's Under common control DHET

• Community education and training college (CET college)

Under common control DHET

• Central Johannesburg College Under common control DHET

• Department of Sport, Arts, Culture and Recreation

Under the same government sphere

• The National Rural Youth Service Corps (NARYSEC) (DRDLR)

Under the same government sphere

• National Student Financial Aid Scheme (NSFAS)

Under common control DHET

• National Treasury Under the same government sphere

• National Lottery Under the same government sphere

• Small Enterprise Development Agency (SEDA) Under the same government sphere

Related party balances


Amounts included in Receivable (Payable) regarding related parties

• Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority (CATHSSETA)

192,028 141,028

• Community Education and Training College (CET College)

(4,077,632) (1,159,330)

• Central Johannesburg College 3,900 3,900

• Department of Military Veterans - 10,441


22,274,296 4,758,346

• Department of Sport, Arts, Culture and Recreation

(6,950) -

• Ekurhuleni East TVET College 50,790 50,790

• Food and Beverages Manufacturing Sector Education and Training Authority (FoodBev SETA)

106,258 96,000

• Insurance SETA (INSETA) - 654,500

• The National Rural Youth Service Corps (NARYSEC) (DRDLR)

140,000 140,000

• National Skills Fund (3,703,438) (3,703,438)

• National Student Financial Aid Scheme (NSFAS)

(7,048,575) (7,347,261)

• National Treasury (4,722) -

• Sedibeng TVET College 3,900 3,900

• South West Gauteng TVET College 3,900 3,900

• Tswane South College - 46,890

• Tswane North College - 46,890

• Wholesale and Retail Sector Education and Training Authority (W&RSETA)

125,000 -

Unspent conditional grants and receipts

• Insurance SETA (INSETA) (1,341,766) (87,040)

• National Skills Fund (52,446) (52,446)

• Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA)

(671,357) -

• National Skills Fund (1,526,157) -

• National Lottery - (646,344)

Related party transactions

Council members

• MOHLALA, M 39,120 43,016


• SETLHAKO, M C 30,208 25,992

• PETJE, M 33,856 8,640

• THWALA, W D 32,448 25,352

• LIAU, M 28,032 26,344

• MOLOKO, G K 23,744 21,640

• GILA, B N 45,728 36,338

• NAIDOO, T 20,576 15,348

• MANAMELA, S 47,640 29,860

• SINGH, P - 1,300

301,352 233,830

Related party transactions

Key management personnel employee cost

Salaries and wages 2,505,038 2,257,149

• Principal 1,071,988 861,722

• Chief Financial Officer 194,118 645,637

• Deputy Principal: Academic Affairs Corporate Services

555,764 78,493

• Deputy Principal: Academic Affairs Academic Affairs

683,168 671,297

DHET management fee cost

• Salaries and wages 163,583,284 136,979,525

Government grants


(219,282,284) (183,235,525)

Project or Grant (income) / expenditure

• Banking Sector Education and Training Authority (BANKSETA)

(935,485) (495,000)

• Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority (CATHSSETA)

- (363,000)

• Community Education and Training College (CET College)

(278,130) (263,546)

• Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA)

- (51,499)

• Food and Beverages Manufacturing Sector Education and Training Authority (FoodBev SETA)

(142,258) (96,000)

• Insurance SETA (INSETA) (4,759,263) (4,706,915)


• University of Johannesburg - 3,842,931

• Wholesale and Retail Sector Education and Training Authority (W&RSETA)

(125,000) (125,000)

• Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA)

(1,488,568) -

• National Skills Fund (2,473,843) -

• National Lottery (646,344) (805,280)

• Small Enterprise Development Agency (SEDA) (1,681,499) -

36. Events after the reporting date

Non-adjusting events

37. Going Concern

We draw attention to the fact that at 31 December 2016, the entity had accumulated profits of R 670 267

874 and that the entity's total assets exceed its liabilities by R 670 267 874.

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

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

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

ordinary course of business.

The ability of the entity to continue as a going concern is dependent on a number of factors. The most

significant of these is that the College receive continued financial support from the relevant government

departments.

38. Net Assets

In terms of the CET Act, the Minister of Higher Education and Training may close a public college subject to certain conditions. In such a case, the net assets of the college, comprising the accumulated surplus and reserves, will vest in the Minister of Higher Education and Training after the settlement of all liabilities.

39. Risk Management and other Financial Instrument disclosures

Maximum Credit risk exposure Credit risk exposure arise from mainly from cash deposits, cash equivalents and trade debtors. The college only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.


The financial assets expose the college to credit risk. The value of the maximum exposure to credit risk are as follows for each of classes of financial assets:

Cash and cash equivalents 251,116,428 254,655,129

Trade and other receivables from exchange transactions 15,617,020 12,099,052

Other receivables from non-exchange transactions, including transfers 22,228,000 28,916,366

Liquidity risk

Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit exposures due to outstanding receivables from students and other trade receivables. Credit risk may also arise from debt securities should the college decide on borrowings. The college has no significant concentrations of credit risk. For banks and financial institutions, only independendtly rated parties are accepted and the college has policies in place to ensure that rendering of education service are made to students with an appropriate credit history. The college's maximum exposure to credit risk is represented by the carrying amount of theses financial assets on the statement of financial position.

Receivables comprise of outstanding student fees and a number of debtors

dispersed across different industries and geographical areas. The college is exposed to credit risk arising from student receivables related to outstanding fees. The risk is mitigated by requiring students to pay an initial instalment in respect of tuition fees at registration, the regular monitoring of outstanding fees, the institution of debt collection action in cases of long outstanding amounts. In addition, students with outstanding balances from previous years of study are only permitted to renew their registration after either the settling of the outstanding amount or the conclusion of formal payment arrangement. The college assists the majority of financially needy students with bursaries through the National Student Financial Aid Scheme (NSFAS).

The table below analyses the entity‟s financial liabilities into relevant maturity groupings based on the remaining period at the Statement of Financial Position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

2016 Not later than one year

Later than one year

Gross finance lease obligations 1,597,744 2,045,923

Trade and other payables 34,449,316 -


2015 Not later than one year

Later than one year

Gross finance lease obligations 191,341 137,499

Trade and other payables 30,171,433 -

Concentration of credit risk

Credit risk is mostly short term and will be serviced through operating funds.

Interest rate risk

As the college has no significant interest-bearing assets, the college’s income and operating cash flows are substantially independent of changes in market interest rates.

At year end, financial instruments exposed to interest rate risk were as follows:

- Call deposits 247,748,099 251,503,619

Interest rate risk sensitivity analysis

The susceptibility of the college's financial performance to changes in interest rates can be illustrated as follows:

Impact

2016

Interest income

Interest rate increase of 25 basis points 619,370

Interest rate decrease 25 basis points (619,370)

The following methods and assumptions were applied in the determination of the interest rate sensitivity analysis:

Most interest bearing call accounts are linked to prime and a change in the interest rate would cause an increase or decrease in the interest received for the year.

2015

Interest income

Interest rate increase of 25 basis points 628,759

Interest rate decrease 25 basis points (628,759)

The following methods and assumptions were applied in the determination of the interest rate sensitivity analysis:

Most interest bearing call accounts are linked to prime and a change in the interest rate would cause an increase or decrease in the interest received for the year.


No changes were made to the methods and assumptions applied, in the prior year, to the determination of the sensitivity analysis.

Other price risk

The college has no exposure to price risk as it does not have any instrument affected by market price fluctuations.

Financial assets pledged as security

No financial assets were pledged as security for liabilities.

Credit quality of financial assets carried at amortised cost

Method of determining credit quality of other non-current financial assets

The credit quality of trade and other receivables from exchange transactions are determined and monitored with reference to credit ratings obtained, for the customers included in the balance, from external credit ratings agencies.

The credit quality of trade and other receivables from exchange transactions are determined and monitored with reference to historical payment trends. Accordingly the credit quality of the customers included in the balance of trade and other receivables from exchange transactions is determined internally through application of the entity's own credit policy. Based on the evaluation of the historical payment trends, customers included in the balance are categorised into the following:

High credit quality - Customers included in this category have evidenced no defaults or breaches in the contractual repayments.

Medium credit quality - Customers included in this category are prone to late payments, but seldomly default on the entire balance owing.

Low credit quality - Customers included in this balance includes customers that frequently default on their outstanding balances and breach contract.

Impairment and reconciliation disclosures related to financial assets

Impairment disclosures for non-current financial assets carried at amortised cost

Reconciliation between gross and net balances Gross Balances

Provision for Doubtful Debts

Net Balance

R R R

Trade and other receivables from exchange transactions - 2015

30,381,350

(18,282,298) 12,099,052

Trade and other receivables from exchange transactions - 2016

51,256,175

(35,639,155) 15,617,020

Total 81,637,524

(53,921,453) 27,716,071

Reconciliation of the doubtful debt provision

Balance at beginning of the year 18,282,298 8,570,330

Contributions to provision 17,356,857 9,711,968

Doubtful debts written off against provision - -


Balance at end of year 35,639,155 18,282,298

Financial assets carried at amortised cost which are less than 1 months past due are not considered to be impaired.

Other current financial liabilities measured at amortised cost through surplus and deficit

Finance leases 3,227,286 328,840

Trade and other payables 34,449,316 30,171,433

Total 37,676,602 30,500,274

40. Tax exemption

The college is exempt from normal taxation in terms of section 10(1)/(c)A (confirm) of the Income Tax Act, 1962 (Act No.58 of 1962).

ekurhuleni west tvet college annual report 2016 - ewc.edu.za · ekurhuleni west tvet college annual...

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