Stability in Shifting Sands 1
Annual Report presentation to AGM 27 November 2014 Shamira Huluman PSETA:CEO Stability in Shifting Sands 2
Outline • Introduction and Mandate • Strategic Outcome Orientated Goals • Funding Model • Revenue/Expenditure Analysis • Performance: Predetermined Objectives • Successes And Challenges • Organogram • AG Report: Basis for Qualification • AG Findings on Performance Information • Plans to address AG Findings • Conclusion 3
Introduction The PSETA welcomed the financial year 2013/14 positively, and with great anticipation that the circular issued by the Department of Public Service and Administration (DPSA) on the utilisation of the one percent training budgets by government departments, will facilitate the achievement of its vision to provide cutting edge skills for quality public services. Due to administrative and legal challenges, a moratorium was placed by National Treasury on the Directive intended for government departments to transfer levies to PSETA and other SETAs. In terms of the Directive, national departments did not pay over the funds to PSETA during 2013/4, except for a few provincial departments 4
Mandate • PSETA is established in terms of the Skills Development Act (SDA) and listed as a Schedule 3A public entity reporting to the Minister of Higher Education and Training (MHET), as the Executive Authority • Mandate: To identify skills shortages, facilitate education & training, encourage the investment in skills development to increase competence and capacity with specific reference to “business of government” and transversal occupations within the PS sector 5
Strategic outcome oriented goals • Better understanding skills needs in the Public Service Sector • Lead the development of the current stock of skills in the Public Service sector • Improve the flow and quality of skills into the Public Service and at the same time, address unemployment and poverty • Re-build the profile of PSETA • Build PSETA’s capacity to achieve its strategic objectives 6
PSETA Funding Model • PSETA unlike other SETAs does not receive levies from its main employer constituency, Government, due to S30 of the SDA that does not make it mandatory for departments to pay levies. • PSETA has over the last 13 years relied on a Treasury allocation via DPSA for its operational costs and on NSF conditional grants to carry out projects. • MHET in conjunction with MPSA tabled a memorandum to Cabinet in November 2012, to regulate the utilization of the 1% training budgets within Public Service, resulting in the DPSA Directive HRD 1 of 2013, issued in March 2013. • 30% of the 1% to SETAs, 50% of 1% for skills interventions for current employees, 20% for the unemployed. 7
Revenue/ expenditure analysis • National Treasury allocation via DPSA for 2013/4 was R23.3 million for operational expenses • PSETA in terms of DPSA directive received R22.8 million from provincial departments, which was only received in February and March 2014. • NSF conditional grant received in 2013/4 was R7.5 million • Total revenue for 2013/4 was R54.6 million • Total expenditure for 2013/4 was R44 million. 8
Performance against Pre-determined objectives Total Not PROGRAMME Annual Achieved Achieved % Achieved Targets Programme 1: Skills Planning 2 1 1 50% and Research Programme 2: Learning 21 16 5 76% Programmes Programme 3: 8 7 1 87.5% ETQA Programme 4: Corporate 8 6 2 75% Services 9
Performance against Pre-determined objectives Total PROGRAMME Annual Achieved Not % Achieved Targets Achieved Programme 5: 4 0 4 0% Finance Programme 6: 5 2 3 40% Governance Programme 7: 3 1 2 33.3% Projects Achieved 33 65% Overall 51 Not Performance 18 35% Achieved 10
Performance against Pre-determined objectives during 2013/4 11
Successes • The PSETA/DPSA and NSF Rural Youth Skills Development partnership has yielded positive results. The SETA is now reporting the successful completions of the first cohort of rural, unemployed learners in learnerships and internships • To date, 39% of PSETA interns were absorbed into employment, as opposed to the 5% required by the State as Employer (DPSA Directive) • TVET Colleges have shown an interest in participating in the exposure to Public Service workplaces to gain contextual understanding • Registration of the Occupational Certificate, Office Administrator: Public Service Administrator at NQF Level 5 by the QCTO (CIP) 12
Successes… • The ETDP SETA partnership has enabled the PSETA to have a presence in 50 TVET Colleges as opposed to the annual target of 18 in the APP • The development of an updated SSP in partnership with HEIs and in particular with Wits - Public Administration Research Institute (PARI), has provided sound research and analytical skills, and has assisted the SETA with credible data. • A SSP update seminar was held in July 2013. It was attended by the sector senior managers and contributed towards a better understanding of the SSP development process. It further provided information to the delegates on how to form partnerships with the SETA and to identify meso-level training needs for the sector 13
Successes… • The PSETA doubled the number of learner certificates (2220) issued for Public Administration: NQF Level 4, National Diploma in Diplomacy (level 7), National Certificate: Mission Administration Level 5 and 6, and National Certificate:Official Statistics Level 5. • 368 assessors and moderators were registered in the sector, supporting the NSG and other state academies to implement the Compulsory Induction Programme (CIP) • 6 occupational qualifications were developed and submitted to QCTO(1 for legislature, 2 for DIRCO and 3 in Public Admin) • In-house internal audit function fully established, improves internal control environment, financial and performance reporting. 14
Challenges • The APP was reviewed midterm due to non payment of levies by the employers as anticipated through the implementation of the DPSA directive. • Capacity challenges within the finance division compromised financial management processes (CFO resignations and a litigation against the appointment of the interim CFO) • Lack of uniform reporting templates in the sector and accompanying supporting evidence challenged PSETA’s monitoring of skills interventions • Slow pace of finalisation of Memoranda of Understanding with partners/ stakeholders 15
Organogram Minister of Higher Education and Training Accounting Audit Board Secretary Authority Committee Suzan Maroleng Chief Audit Executive Assistant Chief Executive Executive to the CEO Officer Evelyn Rampola Puseletso Ditshego Shamira Huluman Corporate Services Chief Operations Chief Finance Executive Officer Officer Jabulane Jiyane Lindelwa Ximiya Emily Ntsowe 16
AG Report: Basis for Qualification • PSETA received a qualified audit opinion based on deferred income liability • Qualification based on failure to present financial evidence supporting utilization of R4,6 million (historical from 2005/6 NSF project) from the NSF grant. • These matters were referred to SIU for investigation, of which 80% of supporting documentation was found. • Management is hopeful that this will resolve the qualification during the 2014/15 external audit process 17
AG Findings on Performance Information • With respect to audit findings on usefulness of reported performance information and the application of the relevant NT frameworks, Government Technical Advisory Center (GTAC) has been assisting the entity to refine its performance indicators and targets to be well defined and measurable • The intervention has ensured the transfer of skills to management, improving capabilities on strategic planning 18
Plans to address AG Findings • Management has developed an audit findings matrix and a Continuous Improvement Plan to monitor implementation of AG recommendations. • The Accounting Authority monitors implementation on a quarterly basis through intensive internal audit processes and thorough introspection by the Audit Committee • Critical root causes have been incorporated in Management performance agreements. 19
Conclusion • The PSETA model is stakeholder driven and its contribution is critical to professionalise the sector and ensuring “cutting edge skills for public service” • PSETA remains positive that the payment of skills levies by employers in the public service will be resolved politically and legislatively. • The Accounting Authority and PSETA staff remain resolute in making a meaningful contribution to the professionalization of the Public Service. 20
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