presentation to portfolio committee on higher education and training – 7 november 2012
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PRESENTATION TO PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING – 7 NOVEMBER 2012. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability. OUTLINE OF PRESENTATION. Journey of the CHIETA to date (Challenges, Achievements and work in progress) - PowerPoint PPT PresentationTRANSCRIPT
PRESENTATION TO PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING – 7 NOVEMBER 2012
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
OUTLINE OF PRESENTATION
• Journey of the CHIETA to date (Challenges, Achievements and work in progress)
• 2011\12 Annual Report - Financial and performance information
• Looking forward – Projected deliverables / commitments
• Questions and answers
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
JOURNEY OF NEW GOVERNING BOARD - CHALLENGES • A new board – 1 April 2012• Previous CEO suspended• Acting CEO and challenges on timing to find suitable
placement (Due process followed)• Low staff morale and lack of discipline due to a protracted
transition period• Break in trust relationship between staff and management
due to the PWC report being confidential
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
JOURNEY OF NEW GOVERNING BOARD- ACHIEVEMENTS
• Effectively operational Board of Governors
• Corporate governance was a major priority for the new Governing Board
• Introduction of accountable board committees and regular reporting and monitoring to the Governing Board and relevant stakeholders
• Clear understanding and mitigation of organizational risks to ensure we deliver on NSDS 3 and other national strategies
• Continuous learning and capacity building to discharge our fiduciary duties with confidence
• Unqualified audit report with no emphases of matter
• Actively addressing PWC findings through audit committee and special Board mandated task teams
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
JOURNEY OF THE NEW GOVERNING BOARD-WORK IN PROGRESS
• Concluding on follow up actions from PWC report (Due process followed)
• Working closely with NSA and DHET on Section 14A matters
• CEO recruitment process in final stages
• Continued support to management and staff to deliver on CHIETA mandate
2011\12 Annual Report - Financial and performance information
• Strong alignment of CHIETA strategic objectives with government priorities and frameworks to address skills shortages and exposing young people to opportunities in the chemicals sector
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
KEY OPERATIONAL CHALLENGES
• Sustained delivery with shortage of capacity
• Establishing accountability on all collective levels in the organization – this has been rolled out successfully since 2011
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
KEY OPERATIONAL ACHIEVEMENTS
• Strong alignment of CHIETA strategic objectives with government priorities and frameworks
• Strategic allocation of grants within NSDS 3 and national priorities
• Re-energize CHIETA Chambers and stakeholder structures
• Above average performance deliverables against pre- determined targets
• CHIETA met and exceeded 82% of its 96 organizational targets
• Exceeded targets in number of employed and unemployed learnerships entered and certificated
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
KEY OPERATIONAL ACHIEVEMENTS CONTINUED
• Exceeded organisational target on artisans employed and unemployed entered
• Exceeded organisational target on FET, Partnerships, Workplace experience, support to co-ops and small businesses and career guidance
• Comprehensive organisational risk management policy framework in place to mitigate external and internal risk
• Maintaining our green status with SAQA on the CHIETA learner record database
• Sustained and increased levy income• CHIETA rural presence at FET colleges• Finalization of a CHIETA compliance register
2011\12 Annual Report - Financial and performance information
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA Audited Performance Information 2011-12
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA Audited Performance Information 2011-12
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA Audited Performance Information 2011-12Performance Indicator Target Actual Percentage
variance
Support to Co-operatives and small businesses
6 10 167%
Career Guidance 200 615 318%
Support to large, medium and small companies
344 990 288%
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS• UNQUALIFIED AUDIT REPORT – 11 Consecutive years • Full Compliance with Laws and Regulations • No material findings on performance information• 11,3% increase in SDL income from R297 million for the
year ended March 2011 to R330 million for the year ended March 2012
• Grant expenses increased by 9.7% from R239 million in 2011 to R262 million in 2012 and accounted for 91% of grant levy income received
• Average grant disbursement rate of over 90% for entire period since inception
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
• DG reserves – 99,9% committed as at 31 March 2012 • Over R45 million (Return on investment – R20m, Admin
savings – R7m, Unclaimed MG – R18m) transferred to DG Reserve for strategic sector skills priorities
• Administration expenses remained well within 10% legislated provision
• Savings of over R7 million realised on administration funds – representing 17% of total admin provision
• NET SURPLUSES FOR THE 2011-12 FINANCIAL YEAR AND ALLOCATION OF FUNDS AVAILABLE ON DG RESERVE
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
2011/12
R'000
Net Surplus 55,738
Administration Savings 7,351
Mandatory Grant Surplus 18,249
Discretionary Grant deficit / surplus 30,138
Balance on Discretionary Reserve at 31 March 340,163
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and EmployabilityCHIETA CONTRACTUAL COMMITMENTS Total Commitments R'000
Discretionary Grant Programs 303,608 Adult Basic Education and Training (ABET) 10,027 Apprentice / Artisan training and development 45,693 Recognition of Prior Learning (RPL) 7,373 Broad Based Black Economic Empowerment 12,948 Career Guidance 1,655 Further Education and Training (FET) 107,339 Foundational Learning 603 Graduate Development 5,462 Higher Education and Training (HET) 10,708 INFRASTRUCTURE Development 1,462 INTERNSHIPS 12,679 GETC Learnerships 17,083 New Venture Creation (NVC) 8,089 Skills Programs 15,819 Workplace Experience 41,197 Work Placement / Employment Creation 5,470
Strategic Sector Projects 36,176 Regional stakeholder Support and Rural Development 6,833 Provider / Stakeholder Accreditation and Support 7,555 Integrated Marketing / Advocacy and Relationship Management 4,253 Sector Skills Planning and Research 1,650 Artisan Development 5,135 SMME Voucher Project 3,250 Bursary Project 5,000 Stakeholder Capacity Building 2,500
TOTAL COMMITMENTS 339,784
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
-
50 000
100 000
150 000
200 000
250 000
300 000
350 000
R'000
YEAR
Skills development levy income
Skills development levy income 40 135 103 274 119 002 128 185 142 579 156 263 177 732 189 485 238 813 268 689 297 262 330 953
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
-
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
R'000
YEAR
Administration income vs Expenditure
10% Administration income 13 840 12 865 13 110 14 104 15 704 19 383 23 026 23 605 30 226 33 613 37 157 42 456
Administration Expenditure 3 872 10 216 10 339 13 374 15 555 18 655 21 241 22 041 28 386 31 200 35 260 34 946
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS
-
50 000
100 000
150 000
200 000
250 000
300 000
R'000
YEAR
SDL Income VS Employer Grants and Project Expenses
SDL for Grants (70%) 26 295 90 082 104 647 113 025 126 043 135 943 153 846 165 389 208 587 235 076 260 105 288 497
Employer Grant and Project Expenses 23 159 70 253 76 627 116 390 91 844 196 204 141 560 122 125 152 742 242 921 239 443 262 584
Grants and Projects exp % 88% 78% 73% 103% 73% 144% 92% 74% 73% 103% 92% 91%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
21
• PARTNERSHIPS & AGREEMENTS WITH FET's,UoT's & HETs
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
FET’s HET’s UOT’s TOTAL
No of Partnerships / Agreements 5 6 3 14
Amount Approved R 7 981 548 R 5 686 300 R 3 050 000 R 16 717 848
No of Learners supported 3 368 319 198 3 885
Amount Approved R 73 921 924 R 7 979 784 R 3 490 383 R 85 392 091
Fully Implemented Credible RPL process at CHIETA for Artisans / Learning Programs
• PROGRESS ON IMPLEMENTATION OF RPL
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
YEAR RPL SECTION 28 ARTISANS
RPL LEARNERSHIPS TOTAL NUMBER OF LEARNERS
2011/12 259 558 817
2012/13 (TO 30 SEPTEMBER 2012)
203 376 579
• WORK INTEGRATED LEARNING – CURRENT CONTRACTUAL COMMITMENTS to 30 SEPTEMBER 2012
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Workplace Experience Internships Workplace Placement Total No of Learners
971 244 167 1 382
SETA PRESENCE IN RURAL AREAS & TOWNSHIPS – OPENING OF OFFICES
•The CHIETA concluded a Memorandum of Understanding with the Enhlanzeni Public FET College on the 28 September 2012
•The official opening of the offices by the CHIETA as the lead SETA was on the 01 October 2012
•The CHIETA is also in the process of establishing its presence in the other 5 Campuses in Mpumalanga.
•The CHIETA is also supporting 15 other lead SETA’s in rural and township areas
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
• COMMITTED NUMBER OF LEARNING PROGRAMMES
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
LEARNING PROGRAMME
18.1Employed
18.2Unemployed
TOTAL
Learnerships(GETC & FET) 1 902 1 984 3 886
Bursaries 55 404 459
Internships 0 244 244
Total 1 957 2 632 4 589
• LIST OF RURAL DEVELOPMENT PROGRAMMES
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
No Programme Name Geographical Area
Implementation Plan
1 Career Guidance KZN All rural Development Programmes being implemented through the CHIETA Rural Development Strategy. This is managed Regionally in all the provinces mentioned through the Regions. All Regions are resourced with Regional Skills Advisors who will be responsible for implementation
Monitoring and Evaluation is implemented through the Head Office
2 SMME Support KZN
3 AET Programmes – Learners with Disabilities
E/Cape
4 Transformational Leadership Programme for FET Women
North West
5 Strengthening Cooperatives within the Chemical Industries Sector
Limpopo
North West
• LIST OF RURAL DEVELOPMENT PROGRAMMES
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
No Programme Name Geographical Area
Implementation Plan
6 Graduate Development Programme
Mpumalanga All rural Development Programmes are implemented through the CHIETA Rural Development Strategy. This is managed from our regional offices in all the provinces mentioned. All Regional Offices are resourced with Regional Skills Advisors who are responsible for implementation. Monitoring and Evaluation is implemented through the Head Office.
The Enhlanzeni FET College has been resourced with 1 Administrator. The CHIETA in partnership with Enhlanzeni will be deploying 6 Interns in all the Campuses.
7 New Venture Creation - SMMEs Free State
8 Maths & Science Career Guidance
Limpopo
9 Mobile Pharmaceutical Laboratory
Limpopo
10 Career & Vocational Guidance Programme
W/Cape
11 Career Exhibitions Inkandla - KZN
12 Enhlanzeni Public FET Rural and Township Programme
Mpumalanga
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
THANK YOU