Annual Report 2013/14

Annual Report 2013/14

Presentation of

Annual Report

to the

Portfolio Committee on Higher Education and Training

QCTO presentation to Portfolio Committee17 Oct 2014

1

Annual Report Theme----

Taking Root and Settling In


2

Organisation’s Mandate

QCTO established under the Skills Development Act 97 of 1998 as amended in 2008

Both the Skills Development Act and the National Qualifications Framework Act 67 of 2008 specify the mandate of the QCTO which basically entails---

1. Ensuring that occupational qualifications (which includes trades) are developed and quality assured

2. Managing the Occupational Qualifications Sub Framework (OQSF)


3

Organisation’s Mandate

In the execution of its work the QCTO

a. oversees•Legacy qualifications of which there are more than 2,000•N4 to N6 part qualifications and National “N” Diploma•More than 10 Quality Assurance Partners

b. handles•The processing of more than 200 applications for qualifications development•Monitors the actions of more than 60 Development Quality Partners


4

2013/2014 Achievements

Human Resources•Staff appointments at all levels such that as of today permanent staff composition sits at 32 •Monitoring & Evaluation Unit fully established

Governance•Qualifications, Assessment and Accreditation and Audit & Risk Committees fully operational, thus all committees of Council established•Internal Audit fully operational


5


Policy development•Full range of policies developed and approved•As of October 2014 no need to continue MoA with the Department of Higher Education and Training (DHET)

Finance and Administration•Implementation of an accrual accounting system•Move to new location (outside of DHET building) December 2013


6


Core Operations•Standardised processes documented and communicated to relevant partners•Development of qualifications on a upward trajectory•Establishment of Quality Assurance Framework•Certification system for trades fully functional and advancing for other occupational qualifications


7

Predetermined Objectives

For programme 1 (administration) key objectives were to establish the QCTO as an independent organisationThe organisation in this formative state achieved as follows:•Met all compliance due dates•Financial policy development•Finalised SCM (and other Financial polices), the ICT plan and draft HR manual and ICT plan such that today MoA with the DHET no longer required


8


Achievements for Programme 2 (qualifications management) included:•Approval of the Occupational Qualifications Sub Framework policy document•Exceeding the target for completion of guidelines for implementing policies•59 qualifications recommended to SAQA for registration (target was 70; therefore shortfall of 11)•Systems in place and executed for the monitoring of all historically registered qualifications managed


9


Achievement for Programme 2 (continued)•System for accreditation of assessment centres in place•Certification system for trades functional, where a single trade certificate under the SDA is issued•Turnaround time for QCTO issuance of trade certificates 3 to 4 working days•System for provider accreditation implemented September 2013•All Quality Assurance Partners (SETAs and Professional Bodies) monitored as Monitoring & Evaluation Unit established and operational


10


Important areas of under achievement for programme 2 included:•Number of qualifications developed and recommended to SAQA Target 70 Actual 59•Number of AQP assessment systems evaluated to be valid and reliable Target 20 Actual 13•Verification and Certification system developed—Trade system fully developed but non trade qualifications still in early stages of development•1 provider accredited per new qualification registeredTarget 70 Actual 2


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2013/2014 Annual Report

Challenges•Majority of staff completely new to the operations•Stakeholder awareness of the QCTO operations •IT system implementation in development stages•Data and information analysis outdated


12


FINANCIAL RESULTS

Statement of Financial Performance

13

2013/14R’000

2012/13R’000

REVENUE

Grant allocation: DHET 21,747 20,352

Grant Allocation: SETA 15,428 -

Finance Income 1,314 837

NSF Funds 82 -

TOTAL REVENUE 38,571 21,189

Compensation (17,440) (9,184)

Other Expenses (19,248) (6,651)

NET SURPLUS FOR THE YEAR 1,883 5,354


FINANCIAL RESULTS

Budget Against Actuals


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BudgetR’000

ActualsR’000

(Under)/Over

CLASSIFICATION

Employee Costs 27,181 17,440 9,565

Goods and Services 15,149 19,248 (4,099)

Capital Expenditure 8,664 9,491 (827)

TOTAL 50,994 49,111 (1,883)


AUDIT OUTCOMES •3 Years of Unqualified Audit Opinion (since inception)•Findings:

Reliability of Performance Information Material adjustments in the Annual Performance information Adjustments to the Annual Financial Statements Irregular Expenditure Asset Management Non Validation of Performance Information Accrual System – Not applied all year round

QCTO presentation to Portfolio

Committee17 Oct 201415


AUDIT OUTCOMES

16

# FINDING ROOT CAUSES REMEDIAL ACTIONS

1. Reliability of Performance Information

Inadequate system during the first half of the year

Corrected

2. Material adjustments to the Annual Performance information

Inadequate Processes (Information telephonically received from Quality Partners)

Independent verifications prior to reporting

3. Non Validation of Performance Information

Inadequate Processes (Information telephonically received from Quality Partners)

Independent verifications prior to reporting

4. Material Adjustments in the Annual Financial Statements

Dependence/Reliance on the Department’s systems for the nine (9) months of 2013/14

Corrected. QCTO’s own Financial systems implemented in January 2014 onwards.


AUDIT OUTCOMES

17

# FINDING ROOT CAUSES REMEDIAL ACTIONS

5. Irregular Expenditure

Cost originally covered by GIZ grant; project team unaware of end date

Corrected. Project team ensured SCM requirements attended to

6. Assets Management


Corrected. QCTO’s own Assets Management systems implemented in January 2014 onwards. QCTO is now fully independent from the DHET

7. Accrual System – Not applied all year round


Corrected. QCTO’s own Financial systems implemented in January 2014 onwards. QCTO is now fully independent from the DHET

Annual Report 2013/14

Documents

Transcript of Annual Report 2013/14