Annual Report Briefing

Select committee on Education and Recreation

26 November 2014,

South African Parliament

Cape Town

Outline• Introduction• CATHSETA Background / Overview• Legislative Mandates• CATHSSETA Strategic Direction• Learning Programmes• Financial Performance• Human Resources• Governance• Way Forward• Questions

Core Mandate of CATHSSETA

• The Purpose of the CATHSSETA is to contribute to South African Economy through the facilitation of skills development in the relevant Sub-Sectors.

• CATHSSETA is broken into six (6) sub-sectors namely;

• Culture, Arts & heritage• Tourism and Travel services• Hospitality• Sport, Recreation and Fitness• Conservation• Gaming and Lotteries

Legislative Mandates

• South African Constitution• Skills Development Act of 1998;• South African Qualifications Authority Act of 1995;• Education and Training Quality Assurance Bodies

Regulation of 1998;• Skills Development Levies Act of 1999;• Learnership Regulations of 2006; • National Qualifications Framework Act of 2008; • Public Finance Management Act • New Grant Regulation effective from 1 April 2013.

Overview/Background of the 21013/14 ARP

• CATHSSETA has been facing challenges of consistently not meeting its predetermined objectives.

• There’s been serious allegations made against some Board members and CEO • The Board commissioned Grant Thornton to investigate the allegations and make

recommendations • The Board couldn’t act on the findings due to their differences • The Minister instructed the Board to resolve the challenges• The infighting within the Board affected the performance of the organization wherein

the targets were not met on a quarterly basis.• For the FY 2013/14, CATHSSETA received a qualified Audit with matters of emphasis• Due to disfunctionality, the Minister instructed the DG to put the SETA under

administration• An Administrator was appointed on the 16th October to take over as the Accounting

Authority for CATHSSETA

•

Overview (continued)

Summary: Highest employed are in the hospitality and lowest Arts, Culture, and Heritage

Distribution of Employees Per Sub-Sector

CATHSSETA Strategic Direction• Vision:

Sustainable People Development for Prosperity

• Values:

Service Excellence; Efficiency; Equity; Integrity; Partnership; Quality; and Accessibility

• Mission:

To facilitate the skills development of our people through creating strategic partnerships to ensure a meaningful contribution to the economic growth within our sector

Strategic Objectives1. Establishing A Credible Institution Mechanism For

Skills Planning 2. Increasing Access To Occupationally Directed

Programmes3. Promoting The Growth Of Public Fet College

System That Is Responsive To Sector, Local, Regional & National Skills Needs & Priorities

4. Addressing the Low Level Of Youth & Adult Language & Numeracy Skills To Enable Additional Training

5. Encourage Better Use Of Workplace-based Skills Development

6. Encouraging And Supporting Cooperatives, Small Enterprises, Worker Initiated, NGO & Community Training Initiatives

7. Increasing Public Sector Capacity For Improved Service Delivery And Supporting The Building Of A Developmental State

8. Building Career & Vocational Guidance

Priority Scarce and Critical Skills

• Hotel Manager• Restaurant Manager• Sport facility Manager• Small Business Manager• Park Ranger• Conservation Scientist• Sound Technician• Chef• Sports Official• Cook

Learning Programmes

Learning Programmes

These are programmes that lead to a Qualification• Learnerships• Internships• Academic learning programmes• Skills programmes (short courses)• Learnerships & Internships are the core mandates as they

interact workplace experience

Number Certificated by Province

1026

1508

412 970

878

970513

275

2232 Comments• Highest in Western Cape• Lowest in Northern Cape

Learner Equity

Dimension Number Certificated Percentages

Black: African 5627 63%

Black: Coloured 930 10%

Black: Indian / Asian 253 3%

Unspecified 138 2%

White 2033 23%

Assessor and Moderator Registration

Dimension New / Received Approved / Registered

Programme 282 46

Assessor 216 107

Moderator 50 60

Bursaries Awarded by Province

40

40

37 39

3713

5

52 Comments• Highest in Western Cape• Lowest in Northern Cape• Unknown Limpopo

Discretionary Fund expenditure by Province

Province Total Number of Learners

Total amount

Eastern Cape 187 R 3 224 000Free State 219 R 2 571 125Gauteng 370 R 6 697 000Kwazulu Natal 991 R 9 619 190Limpopo 124 R 1 516 125Mpumalanga 32 R 675 000North West 198 R 1 896 000Northern Cape 7 R 84 000Western Cape 500 R 5 496 125

STATEMENT OF FINANCIAL PERFORMANCE (ANNUAL REPORT P 170) R’000

REVENUE FY 2013/14 FY 2012/13 FY 2011/12 % changeSkills Development Levy Income 255 386 222 678 197 702 13%

Penalties & interest 3900 2 187 2 484 -12%

Donor Income 1 721 7 567  

Investment Income 5110 5 444 3 454 58%

Other      

TOTAL REVENUE 264 396 232 030 211 207  

EXPENSES      

Mandatory Grants 48 155 94 620 78 959 20%

Discretionary Projects 169 727 105 958 54 533 94%

Donor Expenses 1 721 7 567  

Admin 32 560 27 657 25 481 9%

Other 6 81  

TOTAL EXPENSES 250 442 229 962 166 622  

Surplus 13 954 2 068 44 584  

       

Administrators Observations• Divided organization with high levels of mistrust amongst employees• High levels of pending disciplinary hearings• Contracts awarded without following procurement procedures especially

unsolicited bids• Contracts awarded to non accredited providers and compliance being

facilitated expost facto• Award of international outside of the policy• Broken relationships between AGSA, Internal Auditors and management• No implementation plan for AGSA recommendations• Qualified Audit opinion by AGSA

What has been Done by the Administrator

• Meeting management for a briefing• Meeting with AGSA & Internal Audit for a briefing• Follow up on AGSA findings and develop a plan to ratify identified weaknesses• Assessment of CATHSSETA’s financial position• Precautionary suspension of the CEO &CFO• Completion of outstanding investigations• Stabilizing the organization

– Address staff uncertainties & communicate change– Review plans, budgets and targets for current FY– Review strategy & APP for 2015/16 FY– Weekly management meetings and monthly staff meetings– Engagement of Stakeholders in Gauteng, Durban and Cape Town– Rationalization of functions to ensure integration and improve performance– Finalize Window 2 Discretionary grants allocations

What’s the Plan until Financial Year end

• Engagement of TVETs to strengthen partnership and assess capacity for training

• Sign MOUs with TVETs and workplaces for training and placement of learners

• Bimonthly engagement of stakeholders• Establish joint working committes across sectors • Finalize plans for 2015/16 FY• Develop and implement systems to address AGSA findings

QUESTIONS / COMMENTS

THANK YOU