#MICTSETAPAR2018

Wi-Fi Name: MICT SETA

Password: MICT2018

Agenda

Time Description Presenter

09:15-09:50Sector Showcase

Arrivals and RegistrationAll

10:00-10:05 Opening and Welcome Ms Xabiso Matshikiza

10:05-10:20Foreword by the Chairperson

• Report of the Auditor-General for the Year 2017/2018Chairperson: Mr Sihle Ngubane

10:20-11:00

CEO’s Overview

• Predetermined Performance Information

• Governance

CFO’s Overview

• Annual Financial Statements for the Year 2017/2018

Acting CEO: Mr Charlton Philiso

CFO: Ms Noni Gontshi

11:00-11:30Fourth Industrial Revolution Impacting Skills Development: Paradigm Shift in the

WorkplacePresentation from Stakeholder

11:45-12:00 Sector Showcase All

12:00 LUNCH

2

FORWARD BY THE CHAIRPERSON

MICT SETA 2017/2018 Annual Report Presentation 3

REPORT OF THE AUDITOR GENERAL

History of Audit Outcomes by the Auditor General

— The Auditor General has reported the following for the previous financial years:

— An Unqualified Audit Report with findings for the financial year 2017/18.

— 13 years Unqualified Audit Reports, of which:

o 6 years of PFMA Clean Audit Report Award and Certificate of Excellence

(2012 – 2017).

o 7 years of Unqualified Audit Report (2002, 2003, 2007 – 2011).

4

OVERVIEW BY THE ACTING CHIEF EXECUTIVE OFFICER

PERFORMANCE

INFORMATION

PERFORMANCE INFORMATION

7

PROGRAMME 1: ADMINISTRATION (CORPORATE SERVICES)

Strategic Objective Performance Indicator Target Achievement

Provide integrated

business solutions

within the MICT SETA

1.1 Cost Efficient management of

goods and services

1.2 Provide an effective and efficient

ICT service

1.3 Retain appropriately skilled

personnel by 87%

1.4 Establish a Business Continuity

Management facility that is 100%

fully functional

Page 32 - 33 of Annual Report

R98 700 million 1% savings on goods

and services

Deploy 80% ICT solutions with 95 %

compliance to SLA/OLA.

87%

Provide a system encompassing

people, systems and assets

R79 397 million

All ICT SLAs in place. 100%

SLAs implemented

92%

BCM currently in place

PERFORMANCE INFORMATION

8

PROGRAMME 2 – SECTOR SKILLS PLANNING

Strategic Objective Performance Indicator Target Achievement

Produce a credible

sector skills plan

document with an

accurate list of scarce

and critical skills

2.1 Support approved Companies

through Mandatory Grants on an

annual basis

2.2 Maintain SETA Management

System (SMS) with credible data

on an annual basis

2.3 Establish Partnerships with

Research institutions on an annual

basis

2.4 Develop Professionally researched

and credible Sector Skills Plan

(SSP)

3.1 Up to date career opportunities

guide with labour market

information developed and

distributed on an annual basis

Page 34 - 35 of Annual Report

1 720 Large, Medium and Small

companies to pay Mandatory Grants

(Projection)

1

1

1

1

1 500 career guides to be distributed

1 696 Large, Medium and

Small companies paid

Mandatory Grants

1

1

1

1

3 354 distributed

PERFORMANCE INFORMATION

9

PROGRAMME 3 – LEARNING PROGRAMMES

Strategic Objective Performance Indicator Target Achievement

Increase number of accredited training providers and workplaces for practical work experience

4.1 Unemployed learners entering

learnerships

4.2 Unemployed learners receiving bursaries

4.3 TVET students placed at workplaces

4.5 Learners entering internship programmes

4.6 Unemployed learners entering skills

programmes

4.13 Number of qualifying unemployed

learners entering short programmes

4.14 Number of qualifying university students

placed

4.21 Number of qualifying lecturers entering

development programmes

6.1 Number of small business supported

Page 35 - 39 of Annual Report

3 100

730

800

1 800

1 900

1 350

600

150

15

2 877

702

479

1 673

1 182

451

199

156

20

PERFORMANCE INFORMATION

10

PROGRAMME 4 - EDUCATION AND TRAINING QUALITY ASSURANCE

Strategic Objective Performance Indicator Target Achievement

Develop new and review existing qualifications, accredit training providers

7.1 Increase number of Accredited Training

Providers offering quality programmes by

50 on an annual basis

7.2 Increase number of qualified registered

assessors assessing on quality

programmes by 30 on an annual basis

7.3 Increase number of qualified registered

moderators moderating quality

programmes by 30 on an annual basis

7.4 Develop new or reviewed MICT SETA

relevant qualifications responding to skills

needs

Page 39 – 40 of Annual Report

500

520

220

45

575

1 553

820

45 (All qualifications still

registered with QCTO)

GOVERNANCE

GOVERNANCE

LEGISLATIVE AND OTHER MANDATES

The MICT SETA is established in terms of the Skills Development Act, 1998 (Act No. 97 of

1998). Moreover, the MICT SETA operates within the following legislative mandates:

LEGISLATIVE MANDATES

• Skills Development Act 1998 (Act No. 97 of 1998) as amended;

• Skills Development Levies Act, 1999 (Act No. 09 of 1999);

• The National Qualifications Framework Act, (Act No. 67 of 2008);

• Public Finance Management Act (Act No. 29 of 1999);

• Broad-Based Black Economic Empowerment Act (Act 53 of 2013) as amended; and

• Employment Equity Act, 1998 (Act No. 55 of 1998).

• Treasury Regulations

• Seta Grant Regulations

MICT SETA 2017/2018 Annual Report Presentation 12

THE ACCOUNTING AUTHORITY/THE BOARD

COMPOSITION OF THE BOARD

The Accounting Authority/Board comprises 15 independent non-executive members, which ensures

independence and objectiveness in decision-making.

For the Financial Year 2017/2018 there were 14 active members that constituted the Accounting Authority/Board,

with one vacant position.

MICT SETA 2017/2018 Annual Report Presentation 13

GOVERNANCE

15Independent

Non-Executive

Members

6Organised

Labour

6Organised

Employers

1Professional

bodies

1Community

Organisations

FINANCIAL INFORMATION

SETA LEGISLATION

MICT SETA 2017/2018 Annual Report Presentation 15

Grants breakdown:

Total grant received 80%

Mandatory 20%

Discretionary 49.5%

Administration (incl. 0.5% to QCTO) 10.5%

SETA LEGISLATION

MICT SETA 2017/2018 Annual Report Presentation 16

Latest on SETA Grant Regulations:

Circular No. 15/2017

— Regulation 3(12) set aside

— Allocate uncommitted surpluses to discretionary grant

— Continue to apply for surplus retention (PFMA s53(3) & Treasury Instruction No.6 of

2017/18)

LEVY INCOME

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

2014 2015 2016 2017 2018

606 720659 912

702 301742 891

817 844

5 Year Trend - Levy Income

Year

MICT SETA 2017/2018 Annual Report Presentation 17

LEVY INCOME ANALYSIS

YearAmount

Growth %

R’000

2014 606 720 12.41

2015 659 912 8.77

2016 702 301 6.42

2017 742 891 5.78

2018 817 844 10.09

MICT SETA 2017/2018 Annual Report Presentation 18

LEVY INCOME ANALYSIS

12.41

8.77

6.425.78

10.09

0

2

4

6

8

10

12

14

2014 2015 2016 2017 2018

Growth %

MICT SETA 2017/2018 Annual Report Presentation 19

FINANCIAL TRENDS

Per financial year

Audited

R'000

2017/18 2016/17 2015/16 2014/15

Skills Development Levy income 817 844 742 891 702 301 659 912

Income growth % 10,09% 5,78% 6,42% 8,77%

Discretionary grant expenditure 611 339 721 228 502 062 478 587

Mandatory grant expenditure 154 245 144 520 140 927 130 382

Mandatory grant pay-out % 76% 80% 81% 78%

Administration expenditure 79 397 74 456 68 326 61 572

Surplus/(deficit) 11 334 (149 966) 31 601 19 819

MICT SETA 2017/2018 Annual Report Presentation 20

Per financial year

Audited

R'000

2017/18 2016/17 2015/16 2014/15

Cash and cash equivalents (A) 361 230 334 687 418 234 439 105

Receivables (B) 4 688 19 413 59 639 51 868

Payables ( C ) 109 507 109 149 83 212 130 076

Commitments ( D ) 302 962 344 034 394 067 365 982

Cash deficit declared to NT

(A+B-C-D)(46 551) (99 083) 594 (5 085)

Total reserves 261 055 249 619 399 586 366 932

Discretionary reserves 256 166 244 868 394 267 361 102

% of commitments vs.

discretionary reserves118% 140% 100% 101%

MICT SETA 2017/2018 Annual Report Presentation 21

FINANCIAL TRENDS (Continued)

2017/18Revenue Expenditure Surplus

R'000 R'000 R'000

Administration levies (10.5%) 107 365 79 397 27 968

Mandatory levies (20%) 202 957 154 245 48 712

Discretionary levies (49.5%) 507 522 611 339 (103 817)

Interest and penalties 17 328 - 17 328

Finance and other revenue 21 150 - 20 935

Other - 7 208

Total 856 322 844 988 11 334

MICT SETA 2017/2018 Annual Report Presentation 22

FINANCIAL TRENDS (Continued)

Overall the financial viability assessment of MICT SETA is favourable based on the

following:

- The creditors payment period is at 13.1 days against 30 days credit terms.

- The entity have a surplus in the current year compared to significant loss in the prior

financial year, with positive cash flows from operating activities, accompanied with a

significant increase in the cash and cash equivalents balance compared to the prior

financial period.

- The net asset/liability position of the MICT SETA is positive.

- The SETA’s financial viability is relatively good, as indicated by the assessment above

MICT SETA 2017/2018 Annual Report Presentation 23

FINANCIAL TRENDS (Continued)

Q&A

Discussions and Comments

Thank you