HET

HET

Presentation to the Portfolio Committee on

Higher Education and Training

11 August 2010

Parliament of South Africa

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Mr. Ivan Molefe - Chairperson of the Board

Mr. Mike Wilson - Board member

Mr. Joel Dikgole - Chief Executive Officer

Ms. Daphne Matloa - Chief Financial Officer

Mr. Andile Sipengane - Chief Officer: Qualifications and Research

Dr. Hennie Zwarts - Chief Operating Officer

Delegation

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1. Mandate, Budget and Strategic Plans 2010/11

2. Budget analysis of the 2009/10 financial year

3. SWOT Analysis of W&RSETA

4. Provincial allocations and special projects for 2010

5. Plans to reduce the high unemployment rate among young people

6. Training providers and BEE status including allocation / budget spent per provider

Presentation Structure

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NSDS Indicator Action Plan Target Projected Budget

1 1.1 Update SSP Develop 2011 – 2016 SSP 31 Aug ‘10 R 3 m

2 1.2: Scarce Skills Guide Develop guide 600 R 6 m

3 2.1: WSP/ATR Large Levy Paying Regions 290 R 230 m

4 WSP/ATR Medium Levy Paying ISDF Project R 8mMandatory Grants for levy paying organisations

545

2.2 WSP / ATR Small Levy Paying 3307

5 2.5: Small BEE Firms and Co-ops Support to Organisations 700 R 20m

6 2.7: NQF Level 1 & ABET Interventions

AET Interventions 600 R 15m

2010/11 Strategic Plans & Budgets

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7 2.8: Learnerships and Skills Programmes

Concentration on employed learners

2500 R 80 m

8 3.2: Small non-levy paying organisations

Project RAVE II 1000 R 30m

9 4.1: Learnerships / Skills Programmes

Concentration on unemployed learners

650 R 40m

10 4.3: New Venture Creation Artisans training 50 R 10m


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11 5.1: Institutes of Sectoral Excellence (ISOEs)

Skills Centres: 1000 learners

2 R 30 m

12 5.2: NVC Providers Accredited Training Providers

2 R 500K

NSDS Targets Action Plan Target Projected Budget

13 SETA Accreditation SAQA audit Accreditation R 500K

14 Provincial linkages Participation in Provincial Skills Development Forum

9 R 4,5 m

15 Governance SETA Board Audits / Board / AGM Clean audit reports

R 2 m


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SETA Targets Action Plan Target Projected Budget

16 HET & FET Collaboration Final year students enrolled on scarce skills qualifications offered a 12 months sponsored work opportunity with a monthly stipend.

2000 R 20 m

17 Inter-SETA Collaboration Rural projects for learners 1000 R 50m

18 Management Development Programme

Stakeholder committee to develop programme

30 R 10 m

19 Women Development Programme

Stakeholder committee to develop programme

50 R 10 m


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Collaboration with other SETAs eg. AGRISETA

Partnerships with CBOs, NGOs & Co-ops should be considered to promote community involvement;

Partnership with FETs to build delivery capacity

Market rural programmes through radio broadcasts – identified as a very effective form of reaching the rual and deep rural areas

Target: 1000 learners

Priority 2 – NSDS 2.5 Skills for Rural Development and Co-operatives

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Market work-based learning to 5 000 participating organisations to offer at least 1 learner an opportunity;

Target: 3 500 in small organisations, 500 graduates and 1 000 retrenched in medium and large companies;

Minimum 6 to 18 months work-based learning opportunities with stipend for duration of Training

Permanent employment opportunities if possible;

Small organisations supported to implement work-based learning

Training providers and training materials

Work-based learning guide

Priority 3 Workplace Learning Opportunities to Accompany FET/HET

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Refocus ABET to AET;

Implement RPL to establish skills gaps;

W&RSETA NQF Level 1 Qualification approved and Learnership registered;

900 learners currently on NQF Level 1 Business Practice Learnership;

Implement recently registered W&R NQF Level 1 Learnership

Adult Education and Training – NSDS 2.7

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2009/10 Budget Analysis

STATEMENT OF FINANCIAL PERFORMANCE – COMPARISON TO BUDGET FOR THE

YEAR ENDED 31 MARCH 2010

ACTUAL BUDGET VARIANCE2009/10 2009/10 FavourableR’000 R’000 (unfavourable)

REVENUE

Skills Development Levy: Income 466515 411920 54595Skills Development Levy: penalties and interest 4132 0 4132Other income (213) (213)

TOTAL REVENUE 470434 411920 58514

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ACTUAL BUDGET VARIANCE2009/10 2009/10 FavourableR’000 R’000

(unfavourable)

EXPENDITURE Employer grant and project expenses (381474) (596172) 214698Administration expenses (52308) (52449) 141

TOTAL EXPENDITURE (433782) (648621) 214839

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ACTUAL BUDGET VARIANCE2009/10 2009/10 FavourableR’000 R’000 (unfavourable)

SURPLUS /(DEFICIT) FROM OPERATIONS 36652 (236701) 273353

Interest Income 60854 72600 (11746)

NET SURPLUS/(DEFICIT) FOR THE YEAR 97506 (164101) 261607

Strengths Provincial presence;

Large constituencies – levy income;

Sound governance (clean reports – AG, SAQA, DoL):

Qualified staff (intellectual capital);

Formalised policies;

Performance Management System (PMS) for staff;

IiP organisation – standard of good practice ;

Efficient mandatory grant payment system;

experienced and effective SGB;

good reputation amongst stakeholders;

responsive to sector needs;

Career path and scarce and critical skills guide for the sector (qualifications framework);

Stable leadership

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Weaknesses poor SMME participation in rural areas; disbursement of funds; lack of W&R programmes in FETs and HETs; ratio of employees : training providers is not balanced; high learner drop out rates; poor stakeholder buy-in and participation; inadequate project management; fragmented SMME sector; inadequate communication reach; inadequate IT infrastructure

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Opportunities Rural outreach and participation (require inter-SETA collaboration, increase training and provider base; reduction of unemployment amongst youth and graduates; transition to DHET- opportunities for better collaboration with HETs; development of qualifications from NQF level 5 – 10; integration of work-based experience with curriculum; positioning W&R as career of choice (opportunity to provide progression from school – university – workplace; proposed new landscape – transfer of Motor and Fuel Retail sectors; qualifications partner with QCTO; vibrant informal sector; emerging new trends – opportunities for qualifications; high number of unskilled people; innovative strategies to improve SMME participation

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Threats SETA Relicencing by Minister of HET (new SETA landscape);

registration as quality and assessment partner;

cash reserves taken over by National Treasury;

economic crisis / recession;

drastic changes in legislation resulting in non-existence of the SETA;

poor governance (placement under administration, financial management, Board);

loss of credibility with stakeholders;

fraudulent activities;

sector is not preferred career of choice –sectoral determination base low, long irregular hours;

impact of SARS collection systems on levy income

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Current Special projects Limpopo / Mpumalanga

W&RSETA / P&L Hardware (R 990K)Management development programme for 60 Managers to retain them within the company and province

Eastern Cape

W&RSETA / South African Institute of Chartered Accounts (R 4,5m)35 learners on pilot programme to address accounting skills within sector

Free State

W&RSETA / Free State Department of Public Works (R 4m)30 learners on NVC project

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2010 Projects

Project Name Region BudgetNo. of Learners

Grassroots GP R 10,020,000 200

Makro ABET for Deaf people 09/10 GP R 255,000 138

DG 10/11 - Smollan GP R 18,480,000 560

DG 10/11 - Cashbuild GP R 660,000 20

DG 10/11 - Devland Cash & Carry WEEG project GP R 300,000 20

DG10/11-Cecil Nurse WEEG project GP R 60,000 4

DG 10/11 - Duplix Liquids GP R 33,000 11

DG 10/11 - Ellerines GP R 150,000 10

DG 10/11 – GSM GP R 2,310,000 70

WSP/ATR 2010/2011 National R 8,000,000

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2010 Projects

Project Name Region Budget No. of

Learners

W&R SETA/ CTFL Project KZN R 5,500,000 300

DG 09/10 - Learnerships KZN KZN R 8,530,500 235

Perfect Match - New Venture Creation KZN R 1,046,000 20

DG 09/10 -Apex Stationers Learnership EC R 185,000 5

FastVents 22 CC Disability Learnership EC R 2,365,000 50

DG10/11 MP/ LP R 5,808,000 160

Shoprite Special WC R 19,437,000 1000

DG 09/10 - Africa Skills Village WC R 1,248,000 25

DG 09/10 - Mason WC R 55,000,000 100

DG 09/10 - WEEG CPUT WC R 1,097,250 133

SMME Voucher System National R 51,054,000 8000

New Venture Creation National R 4,076,000 74

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KwaZulu Natal FET/W&RSETA Collaboration (R 18, 6m)

Train 300 learners on NQF level 1 qualification; 300 NVC start up in Nkandla, Nambithi and Ugu Capacitaton of FET and BEE providers

Eastern Cape

Collaboration with St Thomas FET College (R 874K)Train 50 deaf learners in food handling and bakery programmes. Learners to be employed on completion of programme; Capacitate 12 facilitators, moderators & assessors

Regional Allocations and Special Projects for 2010/11

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Eastern Cape BEE Co-operative Skills Project (R 1,7 m) 55 BEE co-ops supported; 200 learners to be trained from Transkei and Ciskei

Just On Cosmetics (R 2,7m) Collaborate with EC Midlands FET public colleges; train 50 unemployed youth on NVC Learnership; 50 small business in rural EC;

Future Projects

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Western Cape

Upskilling Mathematics and Literacy skills of Matriculants (R 3,3m)

500 grade 12 learners to prepare them for next level of learnership; Partnership with FET college

Crafters Project – non-levy paying (R 375K) 350 levy paying owners / managers to be trained;

Free State / Northern Cape and North West (R 19,7m)

Capacitate FET colleges in Motheo, Lejwleputswa, Maluti-a-Phofung and Fezile Dabi to offer W&R qualifications; Capacitate FET colleges to become ISOEs 200 learners to be trained

Future Projects

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Projects to address demand within sector to improve chances of youth employment

W&R Scarce Skills Sponsorship Programme (R 50m)2 000 Final year students and graduates to gain workplace experience on scarce and critical skills

Workplace Experience and Employment Grant (WEEG) 2010/11 (R 253 m)

5 000 matric school leavers, unemployed graduates and retrenched W&R employees to gain workplace experience in small companies.

Reducing High Levels of Unemployment

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WEEG Project for FET Colleges (R 10m) 300 final year learners placed in companies to gain workplace experience; partnership with WC Department of Economic Development and Tourism

Learning Programmes 2010/11 (R 100m)

2 000 learners on learnerships; 1 000 & 500 retrenchees on learnerships and skills programmes respectively

Edcon (R 17,9m)

320 learners on learnerships


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eDEAF II (R 3,2m)34 learners with hearing disabilities on skills programmes.

Thabo Mbeki Development Trust for the Disabled (R 8m)100 learners enrolled on learnership programmes. 50 graduated in July 2010.

Makro Cadetship Programme (R 2,6m)50 learners on cadetship programme. Learners will acquire BCom degree and will be placed within Makro stores.


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Training Provider Demographic Spread

Number of Training Providers

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Provincial spread of Accredited BEE Training Providers

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Total funding

Provider Name Region Aluwa Training GP R 1 206,000.00

Asikhulume Training and Development NC R 0.00

B Wise Skills Development Consultants KZN R 3,171,000.00

Colatmse Institute EC R 45 455.00

Entercom EC R 2 130, 000.00

Grow Makhosikati Trading MP R 150 000.00

Khulisane Academy GP R 42 000.00

Kopure Business Trading and Consulting FS R 1 375 000.00

Letsatsi Learning Solutions (PTY) Ltd GP R 852, 000.00

Linganani Consultants T/A Phoenix GP R 175 000.00

Makwedeng Training Pty (Ltd) KZN R 525 000.00

Budget Allocations to BEE Providers

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Total funding

Provider Name Region Marrian Ridge Computer Centre CC KZN R 9 019 800.00

Masifunde WC R 100 000.00

Perfect Match Enterprises KZN R 1,046,000.00

Siyathembana WC R 45 455.00

SPY-4-U WC R 136 000.00

Thahameso Training & Development Services KZN R 130 000.00

Thuto-Lore Academy LP R 220 000.00

Titan Skills Developers KZN R 441 000.00

Triple L Academy WC R 795 000.00

Budget Allocations to BEE Providers

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Thank you!

Questions and Comments, please

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Documents

Transcript of HET