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PRESENTATION BY THE MINISTERIAL TASK TEAM [MTT] ON SETA PERFORMANCE

1 JUNE 2011

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MEMBERS

• Mr Fikile Majola – Chairperson• Mr Themba Mhambi• Ms Carmel Marock• Prof Volker Wedekind• Mr Mthunzi Mdwaba• Mr Botshabelo Maja and• Ms Christine Olivier

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INTRODUCTION AND BACKGROUND• The skills development function, of which SETAs are a part, were

transferred to the DHET in November 2009.• The skills development framework has been in existence since 2000• Whereas good work has been done by SETAs, there is general

agreement that their performance has been unsatisfactory and in many cases, has not met expectations

• More can be done to improve performance as pointed out in a number of reviews and studies done

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INTRODUCTION AND BACKGROUND Cont.• The above then prompted the Minister to appoint a Task Team to

assess and advise on improvement of the performance of the SETAs• At the announcement of the new SETA landscape in November

2010, the Minister announced that he would be establishing the said Task Team

• On 7 March 2011, Minister appointed the Task Team members.• The TT is bringing the ToRs as part of consultation.• The TT is expecting the PC to give some input on the ToRs as it

embarks on the work to be done

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TERMS OF REFERENCE [ToR] OF THE MTTThe scope of work agreed upon by the task teamis to:• Play a complimentary role in strengthening the work done by DHET

in Governance structures and improving the performance of the SETAs:• To review Funding Model for skills development;• Recommend systems to be used in improving financial management and

accountability;• Make recommendations on the delivery of quality Skills Plans;• Make recommendations on ensuring Compliance with the statutory

requirements

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TERMS OF REFERENCE OF THE MTT Cont.

• Provide a report to the Minister in which information on the above issues is documented with recommendations that can assist DHET in ensuring improving performance of SETAs in the short, medium and long-term.

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MEETINGS AND SUB-COMMITTEES OF THE MTT

• Task Team meetings take place fortnightly.• Three (3) meetings have been held so far.• The MTT has established 3 sub-committees that look at different

Terms of reference; namely:– Skills Planning and Delivery– Financial Management and Funding Model– Governance and Compliance

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SCOPE OF WORK OF THE SKILLS PLANNING SUB-COMMITTEE

Objective 1: Make recommendations on the quality of skills plans

• Understand current sectoral and WSP planning processes;• Review quality of these to establish the credibility of the data, the

mechanisms that are used to quality assure these plans, and the usefulness of the formats that are applied in each case;

• Determine recommendations for future.

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SCOPE OF WORK OF THE SKILLS PLANNING SUB-COMMITTEE

Objective 1: Make recommendations on the quality of skills plans

METHODOLOGY• Review reports completed by the team• Interview experts (from planning process)• Develop proposals re: process and capacity

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SCOPE OF WORK OF THE SKILLS PLANNING SUB-COMMITTEE

Objective 2: Performance assessment of the Delivery of the SETAs

•Review current legal scope of SETAs; •Consider functions that should remain •Understand targets of SETAs against priorities

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SCOPE OF WORK OF THE SKILLS PLANNING SUB-COMMITTEE

Objective 2: Performance assessment of the Delivery of the SETAs

•How is SETA and NSF funding supporting the delivery of the targets set for the SETAs• Is this steering appropriate?

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SCOPE OF WORK OF THE SKILLS PLANNING SUB-COMMITTEE

Objective 2: Performance assessment of the Delivery of the SETAs

• Establish whether other delivery is complimenting SETA funded delivery

• Understand how this is feeding into national information systems

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SCOPE OF WORK OF THE SKILLS PLANNING SUB-COMMITTEE

METHODOLOGY

• Review relevant documents which stipulate current scope (including QCTO docs)

• Engage in 3 focus groups to ascertain SETA understanding of scope (manufacturing and construction, financial, social and services)

• Review of plans and reports from SETAs (to establish targets and progress)

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SCOPE OF WORK OF THE SKILLS PLANNING SUB-COMMITTEE

METHODOLOGY Continued• Review existing SSP and WSP formats;• Review quarterly reports (or other reports?) to establish

what is being funded by the DG and NSF grants;• Look at the database (learner record) – form, level of

accessibility, etc

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GOVERNANCE AND COMPLIANCESUB-COMMITTEE

KEY ISSUES

Improving strategic oversight and planning

• Boards and Management issues;• Enhancing professionalism of Boards – roles, responsibilities,

powers and functions; • From rhetoric to execution – board membership

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GOVERNANCE AND COMPLIANCESUB-COMMITTEE Continued

Overseeing strategy, planning, monitoring and evaluation of SETAs and guiding annual SETA planning

• Sectoral v/s National, reporting – to whom, why, consequences and evaluation – who, what and how?;

• Role of SETAs as servicing the skills development needs of the country.

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GOVERNANCE AND COMPLIANCESUB-COMMITTEE Cont.

Overseeing strategy, planning monitoring and evaluation of SETAs and guiding annual SETA planning• Enhancing the value chain and South Africa’s national skills

priorities over and above sectoral interests – mechanisms?• Moving towards producing the skills required by the economy

versus saturation and market absorption;• Promoting entrepreneurship – systems and mechanisms? Over and

above job placement – job matching, career pathing and placement?

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GOVERNANCE AND COMPLIANCESUB-COMMITTEE Cont.

Establishing culture of cross-SETA co-ordination, co-operation, monitoring and evaluation

• Establishing culture of sharing and learning across SETAs and a practice of working together .

• Identifying sub-sectors which may need to be moved to different clusters;

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GOVERNANCE AND COMPLIANCESUB-COMMITTEE Cont.

Scope of Work• Assess efficacy and efficiency of current governance structures –

M/DHET: NSA: NEDLAC: HRDC: QCTO: SETA Boards: SETAs – Key question: Is there room for streamlining?

• Assess efficacy and efficiency of systems and processes for compliance – Service Level Agreements: Sector Skills Planning processes;

• Simplifying systems and procedures to expedite execution.

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FUNDING AND FINANCIAL SUB-COMMITTEECont.Determine and analyse current funding processes and Methodology applicable to SETAsLEGISLATION• Structure• Applicability• SIC Codes• Compliance with levy paying requirements• Scrutinise dissemination of funds relative to size and

economic place of sectors

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FUNDING AND FINANCIAL SUB-COMMITTEECont.

Analyse SETA budgeting processes

• Compliance with legislation and National Treasury guidelines and regulations

• Alignment with National Skills Development Strategies• Alignment with SETA’s own Strategic Plans

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Analyse financial management within SETAs

• Determine compliance with budgets• Determine cost drivers and their relative relevance within the

framework of achieving SETA’s mandate and NSDS’s• Assess impact relative to financial input

FUNDING AND FINANCIAL SUB-COMMITTEECont.

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FUNDING AND FINANCIAL SUB-COMMITTEECont.

Analyse of projects and their implementation• Analyse funding of projects by SETAs• Determine relevance of projects in the context of strategic and

policy documents• Determine financial management of projects• Determine project’s impact relative to financial investment in them

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External benchmarkingAnalyse representative skills funding systems outside South Africa• Compare impact• Draw lessonsFuture scenario development• Collate findings• Analyse legislative and policy direction• Make recommendations to mitigate lapses identified• Produce Report

FUNDING AND FINANCIAL SUB-COMMITTEECont.

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CONCLUSION

The Task Team will provide the Minister with a first phase report within the first six months of its appointment (end of July 2011)

NGIYABONGA