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