Presentation to the Portfolio Committee on Higher Education

1
Annual Report Presentation to the Portfolio
Committee on Higher Education and Training 19
November 2014
Stability in Shifting Sands
2
Outline

• Introduction and Mandate
• Strategic Goals and Objectives
• Performance Predetermined Objectives
• Successes And Challenges
• 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 anticipating 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 mission 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 PSETAs capacity to achieve its strategic
  objectives

6
Performance against Pre-determined objectives
during 2013/4
7
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
• TVET Colleges have shown an interest in
  participating in the exposure to Public Service
  workplaces by TVET College lecturers. This will
  improve the quality of the training that the
  sector provides
• Registration of the Occupational Certificate,
  Office Administrator Public Service
  Administrator at NQF Level 5 by the QCTO (CIP)
• To date, 39 of interns were absorbed into
  employment, as opposed to the 5 required by the
  State as Employer (DPSA Directive)

8
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 and
  organised by the SETA. It was attended by the
  sector senior managers and contributed towards a
  better understanding by the sector 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

9
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 CertificateOfficial 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.

10
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
  PSETAs monitoring of skills interventions
• Slow pace of finalisation of Memoranda of
  Understanding

11
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. 80of supporting documentation
  which was supplied in June 2014.
• Management is hopeful that this will resolve the
  qualification during the 2014/15 external audit
  process

12
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(GTEC) 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

13
Plans to address AG Findings

• Management has developed an audit findings matrix
  and a Continuous Improvement Plan to monitor
  implementation of AG recommendations. These have
  been approved by the Accounting Authority and are
  monitored 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.

14
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.

15