werner NEW CETA REPORT 2015 - National Government · 2016-03-02 · LPQD Learning Pathways and Quality Development ... SDF Skills Development Facilitator SDLA Skills Development Levy

C o n s t r u c t i o n E d u c a t i o n a n d T r a i n i n g A u t h o r i ty

Ann

ual R

epor

t | 2

014/

15

1

CONSTRUCTION EDUCATION AND TRAINING AUTHORITY | ANNUAL REPORT 2014/15

CONTENTS Page

Abbreviations and Acronyms 2-3

Vision, Mission, Values and Mandate 4

General Information 5

Accounting Authority’s Review 8-10

Chief Executive Of cer’s Review 12-33

Core Business Report 36-64

Corporate Services Report 66-89

Finance Report 92-94

Audit Committee Report 96-97

Report of the Auditor-General 100-103

Annual Financial Statement 108-145

2


ABBREVIATIONS AND ACRONYMS

ABET Adult Basic Education and Training

AET Adult Education and Training

APP Annual Perfomance Plan

AQP Assessment Quality Partner

ATR Annual Training Report

CEO Chief Executive Of cer

CETA Construction Education and Training Authority

CESA Civil Engineering South Africa

CFO Chief Financial Of cer

DEAFSA Deaf South Africa

DG Discretionary Grant

DHET Department of Higher Education and Training

DPSA Disabled People South Africa

DQP Development Quality Partner

ETQA Education and Training Quality Assurance

EWP Employee Wellness Programme

FITA Flooring Industry Training Association

HET Higher Education and Training

JPMT Joint Project Management Team

LPQD Learning Pathways and Quality Development

MBSA Masters Builders South Africa

NAMB National Artisan Moderating Body

NGO Non-Governmental Organization

NPO No-Pro t Organization

NHBRC National Homebuilders Registration Council

NQF National Quali cations Framework

NSDF National Skills Development Strategy

NSFAS National Student Financial Aid Scheme

NYDA National Youth Development Agency

OFO Organizing Framework for Occupations

3


PFMA Public Finance Management Act

QCTO Quality Council for Trades And Occupation

QMR Quarterly Monitoring Report

RPL Recognition of Prior Learning

SANMVA South African National Military Veterans Association

SAFCEC South African Federation of Civil Engineering Contractors

SAQA South African Quali cations Authority

SAWIC South African Women in Construction

SDA Skills Development Act

SDF Skills Development Facilitator

SDLA Skills Development Levy Act

SETA Sector Education and Training Authority

SMME Small, Medium and Micro Enterprise

SSP Sector Skills Plan

SP Strategic Plan

TVET Technical Vocational Education & Training

WSP Workplace Skills Plan

4


Vision

To be a rm pillar of all in construction and nation-building

Mission

To create a solid skills base as a foundation for infrastructural development and economic empowerment

Values

Responsiveness

Respect

Integrity

Professionalism

5


PART A: GENERAL INFORMATION

CETA GENERAL INFORMATION

Registered name of the public entity Construction Education and Training Authority

ISBN number 978-0-621-43746-1

RP number RP198/2014

Registered of ce address 563 Old Pretoria Main Road, Midrand Of ce Park, 1685

Contact telephone numbers +27 11 265 5900

Email address [email protected]

Website address www.ceta.co.za

EXTERNAL AUDITORS INFORMATION

Auditor-General of South Africa

Physical address 300 Middel StreetNew MuckleneukPretoria, South Africa

Postal address Box 446Pretoria0001

Telephone +27 12 426 8000

Fax +27 12 426 8257

BANKER’S INFORMATION

Bank Address

Standard Bank

5 Simmonds Street

Johannesburg

2001

6


Dr Bonginkosi Nzimande

Minister of Higher Education and Training

Submission of the Annual Report to the Executive Authority

To the Minister of Higher Education and Training, Dr.Bonginkosi Nzimande, I have the honour of submitting to you in accordance with the Public Finance Management Act, 1999 (Act 1 of 1999), the Annual Report of the Construction Education and Training Authority (CETA) for the period 01 April 2014 to 31 March 2015.

Mr Raymond Cele

CETA Chairperson

Accounting Authority’s Review

8


REPORT OF THE ACCOUNTING AUTHORITY OF THE EXECUTIVE AUTHORITY AND PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA

Mr Raymond Cele - CETA ChairpersonAs the CETA Accounting Authority, it is the Board’s responsibility to prepare Financial Statements that fairly represent CETA’s Financial Position as at 31 March 2015 as well as the Financial Performance and Summary Cash Flow Activities for the year ending 31 March 2015. We are of the opinion that appropriate Accounting Policies, supported by reasonable and prudent judgements and estimates, have been applied on a consistent basis. The Financial Statements comply with GAAP, including any interpretations of such Statements issued by the Accounting Practices Board and with the prescribed Standards of Generally Recognised Account Practice (GRAP).

GENERAL REVIEW OF THE STATE OF AFFAIRS

The Construction Education and Training Authority (CETA) is a Schedule 3A public entity which was established by the Minister of Labour on 20 March 2000. In 2010 all SETAs’ functions were transferred to the Department of Higher Education and Training (DHET), which resulted in the CETA subsequently being re-established by the Minister of Higher Education and Training with its current licensing period expiring on 31 March 2016.

The mandate of the CETA is to facilitate and fund skills development in the construction sector in South Africa. below are four sub-sectors that the CETA serves:

• Building Construction • Built Environment Professionals• Materials Manufacturing• Roads and Civil Construction

THE RESPONSIBILITIES OF THE CETA

Based on the National Skills Development Strategy (NSDS), its own Sector Skills Plan (SSP) and Strategic Plan and Annual Performance Plans the CETA is, in the main, responsible for the following:

• Review, development and registration of quali cations• Accreditation of providers and the registration of practitioners• The implementation of quality assurance processes that will enhance and ensure quality provision of

training• Funding of critical and scarce skills in the sector through the allocation of discretionary grants• The disbursements of mandatory grants based on the submission of Workplace Skills Plans (WSPs)

and Annual Training Reports (ATRs) by companies in its sector qualifying registered companies.

9


FINANCIAL OVERVIEW

The total revenue for the year ended 31 March 2015 amounted to R640 million which is 17% higher than R546 million in 2013/14. Levy income increased by 13% from R488 million for the 2013/14 year to R551 million for the 2014/15 as a result of increase in levy paying companies. Interest received on investments increased by 35% from R46 million to R61million as a result of increase in the bank balance. All funds are currently invested with CPD and the average interest rates are quoted at 5%.

Total expenditure for the year ended 2014/15 amounted to R412 million increasing by 19% from R346 million in 2013/14 year. Total expenditure is made up of mandatory grants expenditure, Discretionary grants expenditure and Administrative expenditure. Mandatory grant expenditure increased from R75 million to R91 million representing 21 % increase. This is attributable to increase in submissions by the companies. Discretionary grants expenditure increased by 18% from R222 million in 2013/14 to R263 million in 2014/15 year. The increase is attributed to payments made to projects implemented in the current year.

Administration expenditure increased from R49 million in 2013/14 to R57 million in 2014/15. CETA kept its administrative expenditure below the regulated threshold of 10.5%. Employee costs increased by 39% from R26 (2013/14) to R36 (2014/15) as a result of vacant positions that were lled.

The 22% increase in total reserves from R1049 million in 2013/14 to R1277 million in 2014/15 was as a result of increase in interest from investments. All funds are currently invested with CPD and the average interest rate is quoted at 5%.

GOVERNANCE

The Accounting Authority of the CETA is constituted in line with the prescripts of its Constitution and it consists of the following committees:

• Executive Committee

• An Independent Audit Committee

• Finance Committee

• Core Business Committee

• Governance and Strategy Committee

• Remuneration Committee

All the Committees of the Board met as per the requirements of the Constitution and delivered on their respective mandates.

The CETA has an independent Audit Committee, which ensures that the necessary checks and balances are in place for the organisation to exercise its duciary responsibility and to minimise risk. The Audit and Risk Committee functions are in line with the Audit and Risk Committee Charter and comply with principles of good corporate governance and with the requirements of the Public Finance Management Act. The functions of the Audit Committee include a review and an update of the risk analysis by management and internal audit. Also refer to the Audit Committee’s report for detail.

A materiality framework is in place and no instance occurred during the year that required an implementation of the policy developed in the materiality framework.

10


The members of the Accounting Authority of the CETA for the reporting period are as follows:

NAME CONSTITUENCY RESIGNATION DATE

Mr Raymond Cele Independent Chairperson

Chairperson Active Member

Ms Sibongile Nxumalo Organised Employer Active Member

Mr Malusi Ganiso Organised Employer Active Member

Mr Victor Smith Organised Employer June 2014

Mr Fanuel Motsepe Ministerial Appointee Active Member

Mr Webster Mfebe Organised Employer Active Member

Ms Martha Sedumedi Organised Employer Active Member

Mr Mark M koe Organised Employer Active Member

Ms Josias Mpe Organised Labour Active Member

Mr Lesiba Shai Organised Labour Active Member

Mr Bongani Dlamini Organised Labour Active Member

Mr Piet Matosa Organised Labour Active Member

Ms Sankie Molefe Organised Labour Active Member

Mr Bhekani Ngcobo Organised Labour Active Member

In conclusion, I would like to reiterate that there is undoubtedly a need to professionalise the Construction Sector. This must be coupled with the opening up of construction workplace as training spaces to allow both employed and unemployed people to gain skills. This will go a long way to enable us to deal with existing skills shortages and mismatches. This year, good work has been done by the CETA, particularly through the CETA’s consistent focus on achieving speci c objectives. As we look to the new nancial year, our sights are rmly set on enabling a Construction sector that grows the country’s skills base, to shaping a sector that is an inclusive and attractive training ground for South African youth.

Mr Raymond Cele

CETA Chairperson

Chief Executive Offi cer’s Review

12


Ms Sonja Pilusa - CETA CEOIt is our pleasure to present the Annual Report of the Construction Education and Training Authority (CETA) for the year 2014/15.

The CETA has for the fth year in succession received an unquali ed audit report. Of signi cance to mention is the fact that the audit report of the CETA shows a remarkable improvement compared to those of previous years. In fact, the audit reports of the CETA over the past ve years have shown a year on year improvement in terms of the areas in which the CETA had challenges.

In particular - the CETA did not have a single nding in relation to its supply chain management processes and procedures; its irregular expenditure decreased by 70% from R2 147 000.00 in the 2013/14 nancial year to R637 000.00 in the 2014/15 which - in the main - relates to the legacy issues prior to Administration, which the current management inherited - and its fruitless and wasteful expenditure decreased by 100% from R543 000.00 in 2013/14 to R0 in 2014/15. The full amount for the irregular expenditure was condoned by the Accounting Authority. The CETA further received unquali ed audit conclusions for the rst time in more than ve years on all, but one, of its three strategic objectives that were audited. The overall audit report of the CETA for this year demonstrates that the organisation has matured and that the governance and management strategies and systems which were put in place – starting from Administration to date – is working and bearing the necessary results.

The speci c areas of improvement highlighted during the audit will be our main focus going forward as we at all times strive towards a clean administration.

The Auditor General has audited the reported performance information of the CETA for the following selected programmes presented in the annual performance report of the entity for the year ended 31 March 2015:

Programme 2:Increasing Access to Occupationally Directed Programmes in the Construction Sector

Programme 3: TVET (formerly known as FET colleges) Partnerships

Programme 6: Increase uptake of training and employment in construction by young people

The CETA has a commitment balance of R1 291 000 000.00 which are funds committed to scarce and critical skills in the construction sector.

13


Signi cant strides have been made by the CETA with regard to reported performance information in the 2014-2015 nancial year. For the year under review a total of 13 994 learners were supported by the CETA in the following learning pathways:

Learnerships 5 656 learners trained

Bursaries 581 students supported

Short Skills Programmes 2 326 learners trained

Internships 749 interns placed

TVET Graduate Placement 58 graduates placed

University Graduate Placement (Candidacy) 342 graduates placed

Apprenticeships 3 090 apprentices trained

Recognition of Prior Learning 1 218 individuals certi cated

ESTABLISHMENT OF SKILLS DEVELOPMENT CENTRES

The CETA Accounting Authority has approved funding for the establishment of 13 Skills Development Centres through Public TVET Colleges and Universities for the implementation of construction occupational quali cations and skills programmes to rural and township communities. The establishment of the Skills Development Centres is accompanied by structured construction learnerships programmes particularly in Community House Building and registered learners use the construction of the Skills Centres as part of workplace learning.

CETA remains committed to sound management of funds in terms of PFMA, Treasury Regulations and SDLA in order to maintain an unquali ed audit opinion. CETA continues to implement its policies and procedure to ensure that nancial statements presented are accurate, valid and complete.

INTERNAL CONTROLS

Internal controls include a risk-based system of internal accounting and administrative controls designed to provide reasonable assurance that assets are safeguarded and that transactions are executed and recorded in accordance with generally acceptable accounting practice, as well as policies and procedures established by the Accounting Authority and independent oversight by the Audit and Risk committees. The system contains self-monitoring mechanisms and actions are taken to correct de ciencies as they are identi ed.

PRE-DETERMINED OBJECTIVES ANALYSIS

The CETA’s Annual Performance Plan (APP) for 2014/15 provided the plan of action for the year under review. It was based on an adaptation of the template prescribed by National Treasury for government departments and public institutions. In terms of strategic goals it responds speci cally to the goals of the National Skills Development Strategy (NSDS) III, with the exception of project management, corporate management and corporate governance goals, which are unique goals aimed at addressing the corporate support and management and corporate governance of the Construction SETA.

The 2014/15 nancial year marks the fourth year of the third phase of the National Skills Development Strategy (NSDS III), which brought changes in terms of national skills priorities, as well as a more distinct emphasis on the need for SETAs to measure and report on the qualitative impact of their skills development investments.

The CETA does not only measure performance against quantitative targets, but also considers qualitative factors that have an impact on the achievement of NSDS III objectives. Furthermore, there are activities which are not part of the APP which the CETA undertook in the main based on requests from DHET, which are not part of this analysis, but which will be re ected in the Annual Report of the CETA.

14


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17


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next

3 y

ears

on

an

annu

al b

asis

by

2017

.

Num

ber o

f sta

ff tra

ined

or

enro

lled

in fu

rther

stu

dies

/ r

ecei

ved

cont

inuo

us

deve

lopm

ent

8730

Alth

ough

the

CET

A di

dn’t

reac

h th

e in

tend

ed ta

rget

, the

org

anis

atio

n tra

ined

thirt

y (3

0) s

taff

mem

bers

in

the

nan

cial

yea

r und

er re

view

.

Out

of t

he 3

0 st

aff m

embe

rs w

ho

wer

e tra

ined

four

(4) r

ecei

ved

burs

arie

s fo

r for

mal

trai

ning

,

Ten

(10)

sta

ff m

embe

rs u

nder

wen

t n

anci

al m

anag

emen

t tra

inin

g an

d Si

xtee

n st

aff m

embe

rs u

nder

wen

t tra

inin

g in

Bus

ines

s Et

ique

tte a

nd

Cor

pora

te C

ourte

sy.

Oth

er s

taff

mem

bers

rece

ived

co

ntin

uous

sta

ff de

velo

pmen

t tra

inin

g by

the

CET

A in

var

ious

as

pect

s of

the

CET

A bu

sine

ss

oper

atio

ns

Num

ber o

f em

ploy

ees

leav

ing

the

CET

A8

10M

argi

nal D

evia

tion

– C

ETA

is to

ad

dres

s st

aff r

eten

tion

mea

sure

s

Perfo

rman

ce

man

agem

ent :

Num

ber o

f em

ploy

ees

with

app

rove

d pe

rform

ance

pla

ns

8789

Targ

et A

chie

ved

– th

e re

ason

s w

e ha

ve a

n ov

er a

chie

vem

ent i

s du

e to

th

e fa

ct th

at tw

o m

ore

empl

oyee

s jo

ined

the

CET

A

Set u

p an

d op

erat

e he

lp d

esk

to m

anag

e st

akeh

olde

r que

ries

11

Targ

et A

chie

ved

18


Str

ateg

ic O

bje

ctiv

eS

trat

egic

Tar

get

(MT

EF)

KP

Is

Act

ual

Ach

ieve

men

t

2013

/201

4

Pla

nned

Tar

get

2014

/201

5

Act

ual

chie

vem

ent

2014

/201

5

Dev

iati

on

fro

m p

lann

ed t

arg

et

to A

ctua

l Ach

ieve

men

t fo

r

2014

/201

5

To p

lan

relia

bly

and

accu

rate

ly s

o as

to

pro

vide

rele

vant

ed

ucat

ion

and

train

ing

for e

mpl

oym

ent,

entre

pren

eurs

hip

and

econ

omic

de

velo

pmen

t

2000

levy

pay

ing

mem

bers

sub

mitt

ing

cred

itabl

e da

ta

(thro

ugh

WSP

s an

d AT

R) fo

r the

de

velo

pmen

t of S

SP

over

the

next

3 y

ears

on

an

annu

al b

asis

by

2017

.

Num

ber o

f fun

ctio

nal

gove

rnan

ce s

truct

ures

(i.

e. a

udit

com

mitt

ee, c

ore

busi

ness

com

mitt

ee e

tc.,)

77

Targ

et A

chie

ved

Num

ber o

f atte

ndan

ce

rate

of s

ched

uled

AA

mee

tings

44

Targ

et A

chie

ved

Num

ber o

f atte

ndan

ce

rate

of A

A su

bcom

mitt

ee

mee

tings

44

Targ

et A

chie

ved

Min

imum

not

ice

of A

GM

ad

verti

sed

in m

edia

30 d

ays

30 D

ays

Targ

et A

chie

ved

19


PR

OG

RA

MM

E 2

: Inc

reas

ing

Acc

ess

to O

ccup

atio

nally

Dir

ecte

d P

rog

ram

mes

in t

he C

ons

truc

tio

n S

ecto

r

The

purp

ose

of in

crea

sing

acc

ess

to o

ccup

atio

nally

dire

cted

pro

gram

mes

in th

e C

onst

ruct

ion

Sect

or is

for C

ETA

to c

ontri

bute

tow

ards

the

cont

inuo

us u

pgra

de

of s

kills

in th

e w

orkf

orce

. It w

ill en

sure

a m

easu

rabl

e in

crea

se in

the

inte

rmed

iate

ski

lls p

ool i

n th

e co

nstru

ctio

n se

ctor

, esp

ecia

lly in

arti

san,

eng

inee

rs a

nd re

late

d oc

cupa

tions

, attr

ibut

able

to in

crea

sed

capa

city

at e

duca

tion

and

train

ing

inst

itutio

ns a

nd in

crea

sed

wor

kpla

ce e

xper

ient

ial l

earn

ing

oppo

rtuni

ties.

Str

ateg

ic O

bje

ctiv

eS

trat

egic

Tar

get

(MT

EF)

KP

Is

Act

ual

chie

vem

ent

2013

/201

4

Pla

nned

Targ

et

2014

/201

5

Act

ual

chie

vem

ent

2014

/201

5

Dev

iati

on

fro

m p

lann

ed t

arg

et

to A

ctua

l Ach

ieve

men

t fo

r

2014

/201

5

To a

ccur

atel

y de

term

ine

requ

isite

m

iddl

e le

vel s

kill

need

s an

d ev

olve

st

rate

gies

to e

nsur

e in

crea

sed

acce

ss

to o

ccup

atio

nally

-di

rect

ed tr

aini

ng

rela

ted

to th

em

1337

5 em

ploy

ed

and

unem

ploy

ed

lear

ners

enr

olle

d an

d ce

rti c

ated

in m

iddl

e le

vel s

kills

are

abl

e to

ac

cess

and

be

plac

ed

in o

ccup

atio

nally

re

late

d e

lds

by 2

017

Num

ber o

f Lea

rner

ship

s en

tere

d:

Une

mpl

oyed

lear

ners

per

yea

r

Empl

oyed

lear

ners

per

yea

r

926

193

6000

(Fun

ded)

500

(Unf

unde

d)

2000

(fun

ded)

500

(Unf

unde

d)

3005

350

0 78

Alth

ough

allo

catio

ns w

ere

mad

e du

ring

the

nan

cial

yea

r to

mee

t th

e ta

rget

s se

t for

the

year

und

er

revi

ew, s

ome

of th

e pr

ojec

ts w

ere

impl

emen

ted

afte

r the

na

ncia

l ye

ar.

The

CET

A di

d no

t mee

t the

ta

rget

but

ach

ieve

d al

mos

t 50%

for

fund

ed. I

t sho

uld

be n

oted

that

13

of th

ese

lear

ners

wer

e en

tere

d in

th

e 20

13/1

4 n

anci

al y

ear a

nd w

ere

neve

r rep

orte

d.

Targ

ets

not m

et d

ue th

e C

ETA

prio

ritis

ing

fund

ing

for u

nem

ploy

ed

lear

ners

Num

ber o

f Lea

rner

ship

s co

mpl

eted

:

Une

mpl

oyed

lear

ners

per

yea

r

Empl

oyed

lear

ners

per

yea

r

3000

(fun

ded)

250

(Unf

unde

d)

1000

(fun

ded)

250

(Unf

unde

d)

770

417

460

593

Targ

ets

for f

unde

d no

t met

due

to

lim

itatio

n of

lear

ners

ent

ered

as

per

abo

ve re

sulti

ng in

few

er

com

plet

ions

for t

he F

inan

cial

yea

r un

der r

evie

w. I

t is

antic

ipat

ed th

at

thes

e co

mpl

etio

ns w

ill be

re e

cted

in

the

2015

/16

Fina

ncia

l Yea

r.

20


Str

ateg

ic O

bje

ctiv

eS

trat

egic

Tar

get

(MT

EF)

KP

Is

Act

ual

chie

vem

ent

2013

/201

4

Pla

nned

Targ

et

2014

/201

5

Act

ual

chie

vem

ent

2014

/201

5

Dev

iati

on

fro

m p

lann

ed t

arg

et

to A

ctua

l Ach

ieve

men

t fo

r

2014

/201

5

To a

ccur

atel

y de

term

ine

requ

isite

m

iddl

e le

vel s

kill

need

s an

d ev

olve

st

rate

gies

to e

nsur

e in

crea

sed

acce

ss

to o

ccup

atio

nally

-di

rect

ed tr

aini

ng

rela

ted

to th

em

1337

5 em

ploy

ed

and

unem

ploy

ed

lear

ners

enr

olle

d an

d ce

rti c

ated

in m

iddl

e le

vel s

kills

are

abl

e to

ac

cess

and

be

plac

ed

in o

ccup

atio

nally

re

late

d e

lds

by 2

017

Num

ber o

f Ski

lls p

rogr

ams

ente

red:

Une

mpl

oyed

lear

ners

per

yea

r

Empl

oyed

lear

ners

per

yea

r

867

1000

(fun

ded)

500

(Unf

unde

d)

4000

(fun

ded)

500

(Unf

unde

d)

1006

97 119

67

The

CET

A ex

ceed

ed th

is ta

rget

du

e to

the

spec

i c

shor

t ski

lls

prog

ram

mes

des

igne

d by

the

CET

A to

add

ress

the

spec

i c

need

s of

th

e co

nstru

ctio

n se

ctor

. The

CET

A fu

rther

und

erto

ok e

fforts

to e

nsur

e th

at y

oung

peo

ple

get i

nto

the

CET

A sy

stem

so

that

they

can

go

thro

ugh

the

entir

e sk

ills p

ipel

ine

and

even

tual

ly e

xit a

s fu

ll- e

dged

ar

tisan

s.

Targ

ets

not m

et d

ue th

e fa

ct th

at

empl

oyer

s ar

e re

luct

ant t

o re

leas

e th

eir w

orke

rs fo

r tra

inin

g

The

CET

A ha

s no

con

trol o

ver t

he

unfu

nded

targ

ets

as th

ese

depe

nd

on in

dust

ry fu

ndin

g an

d re

porti

ng

the

train

ing

to th

e C

ETA

Num

ber o

f Ski

lls p

rogr

am

com

plet

ed:

Une

mpl

oyed

lear

ners

Empl

oyed

lear

ners

143

324

600

(fund

ed)

250

(Unf

unde

d)

2000

(fun

ded)

250

(Unf

unde

d)

0 1015

0 22

Targ

ets

not m

et fo

r fun

ded

com

plet

ions

.

Targ

et fo

r unf

unde

d w

as e

xcee

ded

due

to th

e C

ETA

addr

essi

ng

back

logs

in c

erti

cat

ion.

Targ

ets

not m

et fo

r bot

h ar

eas

as fu

ndin

g w

as ta

rget

ed a

t un

empl

oyed

lear

ners

resu

lting

in

few

er e

ntrie

s an

d co

mpl

etio

ns fo

r em

ploy

ed

21


Str

ateg

ic O

bje

ctiv

eS

trat

egic

Tar

get

(MT

EF)

KP

Is

Act

ual

chie

vem

ent

2013

/201

4

Pla

nned

Targ

et

2014

/201

5

Act

ual

chie

vem

ent

2014

/201

5

Dev

iati

on

fro

m p

lann

ed t

arg

et

to A

ctua

l Ach

ieve

men

t fo

r

2014

/201

5

To a

ccur

atel

y de

term

ine

requ

isite

m

iddl

e le

vel s

kill

need

s an

d ev

olve

st

rate

gies

to e

nsur

e in

crea

sed

acce

ss

to o

ccup

atio

nally

-di

rect

ed tr

aini

ng

rela

ted

to th

em

1337

5 em

ploy

ed

and

unem

ploy

ed

lear

ners

enr

olle

d an

d ce

rti c

ated

in m

iddl

e le

vel s

kills

are

abl

e to

ac

cess

and

be

plac

ed

in o

ccup

atio

nally

re

late

d e

lds

by 2

017

Num

ber o

f Arti

sans

ent

ered

:

Une

mpl

oyed

Empl

oyed

6000

(fun

ded)

500

(Unf

unde

d)

2000

(fun

ded)

250

(Unf

unde

d)

2982

0 0 0

Alth

ough

allo

catio

ns w

ere

mad

e du

ring

the

nan

cial

yea

r to

mee

t th

e ta

rget

s se

t for

the

year

und

er

revi

ew, s

ome

of th

e pr

ojec

ts w

ere

impl

emen

ted

afte

r the

na

ncia

l ye

ar. T

he C

ETA

did

not m

eet t

he

targ

et b

ut a

chie

ved

alm

ost 5

0% fo

r un

empl

oyed

fund

ed.

Targ

ets

not m

et d

ue th

e fa

ct th

at

empl

oyer

s ar

e re

luct

ant t

o re

leas

e th

eir w

orke

rs fo

r tra

inin

g. T

he C

ETA

has

no c

ontro

l ove

r the

unf

unde

d ta

rget

s as

thes

e de

pend

on

indu

stry

fund

ing

and

repo

rting

the

train

ing

to th

e C

ETA.

Num

ber o

f Arti

sans

co

mpl

eted

Une

mpl

oyed

Lea

rner

s

Empl

oyed

3000

(fun

ded)

250

(Unf

unde

d)

1000

(fun

ded)

125

(Unf

unde

d)

108

(fund

ed)

0 (u

nfun

ded)

0 (fu

nded

)

0 (u

nfun

ded)

This

targ

et w

as n

ot m

et a

s Ap

pren

tices

hip

prog

ram

mes

take

3

year

s to

com

plet

e –

CET

A ex

pect

s to

repo

rt co

mpl

etio

ns in

201

7.

Targ

ets

not m

et d

ue th

e fa

ct th

at

empl

oyer

s ar

e re

luct

ant t

o re

leas

e th

eir w

orke

rs fo

r tra

inin

g. T

he C

ETA

has

no c

ontro

l ove

r the

unf

unde

d ta

rget

s as

thes

e de

pend

on

indu

stry

fund

ing

and

repo

rting

the

train

ing

to th

e C

ETA.

22


Str

ateg

ic O

bje

ctiv

eS

trat

egic

Tar

get

(MT

EF)

KP

Is

Act

ual

chie

vem

ent

2013

/201

4

Pla

nned

Targ

et

2014

/201

5

Act

ual

chie

vem

ent

2014

/201

5

Dev

iati

on

fro

m p

lann

ed t

arg

et

to A

ctua

l Ach

ieve

men

t fo

r

2014

/201

5

To a

ccur

atel

y de

term

ine

requ

isite

m

iddl

e le

vel s

kill

need

s an

d ev

olve

st

rate

gies

to e

nsur

e in

crea

sed

acce

ss

to o

ccup

atio

nally

-di

rect

ed tr

aini

ng

rela

ted

to th

em

1337

5 em

ploy

ed

and

unem

ploy

ed

lear

ners

enr

olle

d an

d ce

rti c

ated

in m

iddl

e le

vel s

kills

are

abl

e to

ac

cess

and

be

plac

ed

in o

ccup

atio

nally

re

late

d e

lds

by 2

017

Num

ber o

f bur

sarie

s en

tere

d:

Une

mpl

oyed

lear

ners

per

yea

r

2495

600

(fund

ed)

581

Targ

et n

ot m

et a

s lo

wer

num

ber

of le

arne

rs e

nter

ed in

to th

e pr

ogra

mm

e du

ring

the

nan

cial

ye

ar u

nder

revi

ew.

Num

ber o

f bur

sarie

s co

mpl

eted

:

Une

mpl

oyed

lear

ners

per

yea

r

180

(fun

ded)

0Ta

rget

not

met

as

the

curre

nt g

roup

of

stu

dent

s re

ceiv

ing

burs

arie

s fro

m th

e C

ETA

wer

e aw

arde

d th

ese

burs

arie

s in

201

3.

The

CET

A w

ill on

ly b

e ab

le to

repo

rt on

com

plet

ions

for t

he c

urre

nt

coho

rt of

bur

sars

in th

e 20

16/1

7 n

anci

al y

ear.

Num

ber o

f int

erns

hips

en

tere

d:

Une

mpl

oyed

lear

ners

per

yea

r

152

1500

(fun

ded)

686

Alth

ough

the

CET

A m

ade

allo

catio

ns in

exc

ess

of it

s ta

rget

s,

indu

stry

cou

ld o

nly

abso

rb s

ix

hund

red

and

eigh

ty s

ix (6

86) i

nter

ns

to b

e pl

aced

at v

ario

us c

ompa

nies

.

Con

tinue

d en

gage

men

ts w

ith

indu

stry

will

take

pla

ce fo

r the

nex

t n

anci

al y

ear

23


Str

ateg

ic O

bje

ctiv

eS

trat

egic

Tar

get

(MT

EF)

KP

Is

Act

ual

chie

vem

ent

2013

/201

4

Pla

nned

Targ

et

2014

/201

5

Act

ual

chie

vem

ent

2014

/201

5

Dev

iati

on

fro

m p

lann

ed t

arg

et

to A

ctua

l Ach

ieve

men

t fo

r

2014

/201

5

To a

ccur

atel

y de

term

ine

requ

isite

m

iddl

e le

vel s

kill

need

s an

d ev

olve

st

rate

gies

to e

nsur

e in

crea

sed

acce

ss

to o

ccup

atio

nally

-di

rect

ed tr

aini

ng

rela

ted

to th

em

1337

5 em

ploy

ed

and

unem

ploy

ed

lear

ners

enr

olle

d an

d ce

rti c

ated

in m

iddl

e le

vel s

kills

are

abl

e to

ac

cess

and

be

plac

ed

in o

ccup

atio

nally

re

late

d e

lds

by 2

017

Num

ber o

f int

erns

hips

co

mpl

eted

:

Une

mpl

oyed

lear

ners

per

yea

r

045

0 (fu

nded

)20

Targ

et n

ot m

et a

s In

tern

ship

s ru

n fo

r a p

erio

d of

a y

ear a

nd th

e cu

rrent

inte

rns

will

only

be

repo

rted

in th

e 20

15/1

6 n

anci

al y

ear.

It

shou

ld b

e no

ted

that

8 o

f the

se

lear

ners

wer

e co

mpl

etio

ns fr

om

the

2013

/14

year

that

wer

e ne

ver

repo

rted.

Num

ber o

f TVE

T St

uden

t/G

radu

ate

Plac

emen

ts e

nter

ed

per y

ear

1655

3500

(fun

ded)

58

Alth

ough

the

CET

A m

ade

allo

catio

ns in

exc

ess

of 1

700

lear

ners

to b

e pl

aced

, we

coul

d on

ly p

lace

58

lear

ners

. Thi

s is

pr

imar

ily d

ue to

the

low

inta

ke o

f N

CV

lear

ners

by

indu

stry

Num

ber o

f TVE

T St

uden

t/G

radu

ate

Plac

emen

ts

com

plet

ed p

er y

ear

015

00 (f

unde

d)0

Targ

et n

ot m

et a

s a

resu

lt of

the

abov

e ta

rget

hav

ing

a lo

w in

take

. Th

e 58

lear

ners

repo

rted

in th

e ab

ove-

cite

d ta

rget

will

be re

porte

d in

the

2015

/16

nan

cial

yea

r as

havi

ng c

ompl

eted

24


Str

ateg

ic O

bje

ctiv

eS

trat

egic

Tar

get

(MT

EF)

KP

Is

Act

ual

chie

vem

ent

2013

/201

4

Pla

nned

Targ

et

2014

/201

5

Act

ual

chie

vem

ent

2014

/201

5

Dev

iati

on

fro

m p

lann

ed t

arg

et

to A

ctua

l Ach

ieve

men

t fo

r

2014

/201

5

To a

ccur

atel

y de

term

ine

requ

isite

m

iddl

e le

vel s

kill

need

s an

d ev

olve

st

rate

gies

to e

nsur

e in

crea

sed

acce

ss

to o

ccup

atio

nally

-di

rect

ed tr

aini

ng

rela

ted

to th

em

1337

5 em

ploy

ed

and

unem

ploy

ed

lear

ners

enr

olle

d an

d ce

rti c

ated

in m

iddl

e le

vel s

kills

are

abl

e to

ac

cess

and

be

plac

ed

in o

ccup

atio

nally

re

late

d e

lds

by 2

017

Num

ber o

f Uni

vers

ity S

tude

nt/

Gra

duat

e Pl

acem

ents

ent

ered

pe

r yea

r 55

710

00 (f

unde

d)34

2

Targ

ets

not m

et a

s th

e C

ETA

repo

rts C

andi

dacy

Pro

gram

mes

un

der t

his

indi

cato

r whi

ch is

st

ill in

the

initi

al p

hase

i.t.o

im

plem

enta

tion

and

expe

cts

an

incr

ease

from

the

2015

/16

nan

cial

ye

ar.

Num

ber o

f Uni

vers

ity

Stud

ent/G

radu

ate

Plac

emen

ts

com

plet

ed p

er y

ear

030

0 (fu

nded

)0

Targ

et n

ot m

et a

s ye

t as

the

prog

ram

me

is a

mul

ti-ye

ar o

ne a

nd

com

plet

ion

to b

e on

ly re

porte

d in

th

e 20

15/1

6 n

anci

al y

ear

Num

ber o

f Can

dida

cy

prog

ram

mes

ent

ered

per

yea

r

557

1000

(fun

ded)

342

The

CET

A re

ports

Can

dida

cy

Prog

ram

mes

und

er th

is in

dica

tor

whi

ch is

stil

l in

the

initi

al p

hase

i.t.o

im

plem

enta

tion

and

expe

cts

an

incr

ease

from

the

2015

/16

nan

cial

ye

ar.

Num

ber o

f Can

dida

cy

prog

ram

mes

com

plet

ed p

er

year

030

0 (fu

nded

)0

Targ

et n

ot m

et a

s ye

t as

the

prog

ram

me

is a

mul

ti-ye

ar o

ne a

nd

com

plet

ion

to b

e on

ly re

porte

d in

th

e 20

15/1

6 n

anci

al y

ear

Num

ber o

f lea

rner

s in

ru

ral a

reas

enr

olle

d in

de

dica

ted

skills

dev

elop

men

t pr

ogra

mm

es

4630

1930

059

77

The

CET

A al

loca

ted

proj

ects

in

exce

ss o

f its

pla

nned

ove

rall

targ

ets,

how

ever

, onl

y 59

77

lear

ners

hav

e st

arte

d in

the

curre

nt

nan

cial

yea

r

25


PR

OG

RA

MM

E 3

: TV

ET

(fo

rmer

ly k

now

n as

FE

T c

olle

ges

) Par

tner

ship

s

CET

A’s

man

date

is to

forg

e pa

rtner

ship

s w

ith T

VET

Col

lege

s to

enc

oura

ge a

clo

ser c

oord

inat

ion

and

syne

rgy

betw

een

thes

e in

stitu

tions

whi

ch m

ust

stre

ngth

en a

nd c

apac

itate

col

lege

s w

ith a

vie

w o

f prio

ritis

ing

them

whe

n it

com

es to

trai

ning

pro

visi

on.

Str

ateg

ic

Ob

ject

ive

Str

ateg

ic

Targ

et (M

TE

F)K

PIs

Act

ual

Ach

ieve

men

t

2013

/201

4

Pla

nned

Targ

et

2014

/201

5

Act

ual

Ach

ieve

men

t

2014

/201

5

Dev

iati

on

fro

m p

lann

ed t

arg

et

to A

ctua

l Ach

ieve

men

t fo

r

2014

/201

5

To b

uild

gre

ater

an

d pr

ojec

t-bas

ed

partn

ersh

ips

with

TV

ET C

olle

ges

47 S

trate

gic

partn

ersh

ips

secu

red

with

TV

ET C

olle

ges

by 2

017

Num

ber o

f TVE

T co

llege

s w

ith C

ETA

accr

edita

tion

per

year

838

39

Targ

et e

xcee

ded

due

to th

e de

velo

pmen

tal a

ppro

ach

that

th

e C

ETA

impl

emen

ted

in th

e n

anci

al y

ear u

nder

revi

ew in

th

e ac

cred

itatio

n of

pub

lic T

VET

Col

lege

s

Num

ber o

f lea

rner

s en

rolle

d in

ski

lls d

evel

opm

ent

prog

ram

mes

and

pla

ced

thro

ugh

TVET

s pe

r yea

r

1398

7720

696

Targ

et n

ot m

et a

s fe

wer

pro

ject

s w

ere

impl

emen

ted

thou

gh T

VET

colle

ges

and

low

er in

take

of

grad

uate

s by

indu

stry

Num

ber o

f TVE

Ts fa

cilit

ated

w

ith th

e tra

inin

g of

hum

an

reso

urce

s N

o pr

evio

us ta

rget

00

No

devi

atio

n

Num

ber o

f TVE

Ts a

ssis

ted

with

infra

stru

ctur

e de

velo

pmen

t per

yea

r N

o pr

evio

us ta

rget

09

The

CET

A as

sist

ed 9

TVE

T C

olle

ges

in th

is

nanc

ial

year

with

the

infra

stru

ctur

e de

velo

pmen

t thr

ough

the

esta

blis

hmen

t of t

he s

kills

de

velo

pmen

t cen

tres

Num

ber o

f par

tner

ship

s

86

8

Targ

et e

xcee

ded

due

to a

n in

crea

se a

lloca

tions

mad

e to

sp

ecia

l pro

ject

s fo

r var

ious

sk

ills d

evel

opm

ent i

nitia

tives

as

wel

l as

the

Min

iste

r’s

stra

tegy

aim

ed a

t inc

reas

ing

partn

ersh

ips

betw

een

SETA

s an

d TV

ETs.

26


PR

OG

RA

MM

E 4

: SM

ME

s, N

PO

s, C

oo

per

ativ

es a

nd W

ork

er In

itia

tive

s

CET

A’s

role

in b

uild

ing

an in

clus

ive

econ

omy,

nan

cial

and

non

- na

ncia

l bus

ines

s su

ppor

t to

smal

l and

mic

ro-s

ized

ente

rpris

es a

s pa

rt of

the

dem

ocra

tic

gove

rnm

ent’s

pro

gram

me

is c

ruci

al. C

ETA

will

supp

ort t

he d

evel

opm

ent o

f SM

MEs

, NPO

’s an

d co

oper

ativ

es in

ens

urin

g th

e ec

onom

ical

sus

tain

abilit

y of

sm

all e

nter

pris

es th

roug

h th

e di

scre

tiona

ry g

rant

aw

ards

.

Str

ateg

ic O

bje

ctiv

e S

trat

egic

Tar

get

(MT

EF)

KP

IsA

ctua

l Ach

ieve

men

t

2013

/201

4

Pla

nned

Tar

get

2014

/201

5

Act

ual A

chie

vem

ent

2014

/201

5

Dev

iati

on

fro

m

pla

nned

tar

get

to

Act

ual A

chie

vem

ent

for

2014

/201

5

To in

crea

se th

e po

ol

of S

MM

Es, N

POs,

co

oper

ativ

es a

nd

wor

ker i

nitia

tives

in

the

cons

truct

ion

sect

or

25 S

MM

Es, N

POs,

co

oper

ativ

es a

nd

wor

ker i

nitia

tives

de

velo

ped

by 2

017.

Num

ber o

f SM

MEs

tra

ined

and

/or

ass

iste

d w

ith

accr

edita

tion

and

regi

stra

tion

per y

ear

No

prev

ious

targ

et

2513

4

Targ

et e

xcee

ded

due

to th

e C

ETA’

s vi

goro

us

proj

ect m

anag

emen

t an

d m

onito

ring

appr

oach

Num

ber o

f NPO

s an

d/or

NG

Os

train

ed a

nd/

or a

ssis

ted

with

ac

cred

itatio

n an

d re

gist

ratio

n pe

r yea

r

No

prev

ious

targ

et

810

Targ

et e

xcee

ded

Num

ber o

f co-

oper

ativ

es tr

aine

d pe

r yea

r

No

prev

ious

targ

et5

0Ta

rget

not

met

as

no

appl

icat

ions

rece

ived

fo

r coo

pera

tives

27


PR

OG

RA

MM

E 5

: E

nhan

cem

ent

of

pub

lic s

ecto

r ca

pac

ity

for

imp

rove

d s

ervi

ce d

eliv

ery

CET

A’s

cont

ribut

ion

to c

apac

itate

pub

lic s

ecto

r ser

vice

del

iver

y st

ems

from

gov

ernm

ent g

oals

con

tain

ed in

IPAP

2 an

d th

e N

DP.

Str

ateg

ic O

bje

ctiv

e S

trat

egic

Tar

get

(MT

EF)

KP

IsA

ctua

l Ach

ieve

men

t

2013

/201

4

Pla

nned

Tar

get

2014

/201

5

Act

ual A

chie

vem

ent

2014

/201

5

Dev

iati

on

fro

m

pla

nned

tar

get

to

Act

ual A

chie

vem

ent

for

2014

/201

5

To c

oope

rate

and

co

llabo

rate

with

re

leva

nt g

over

nmen

t de

partm

ents

an

d ot

her p

ublic

in

stitu

tions

to

impr

ove

serv

ice

deliv

ery

thro

ugh

skills

de

velo

pmen

t

MoU

s en

tere

d w

ith

rele

vant

gov

ernm

ent

depa

rtmen

ts

and

othe

r pub

lic

inst

itutio

ns to

im

prov

e se

rvic

e de

liver

y th

roug

h sk

ills

deve

lopm

ent b

y 20

18

Num

ber o

f MoU

s en

tere

d in

to w

ith

gove

rnm

ent

depa

rtmen

ts

and

othe

r pub

lic

inst

itutio

ns p

er y

ear

11

1Ta

rget

Ach

ieve

d

28


Pro

gra

mm

e 6:

Incr

ease

up

take

of

trai

ning

and

em

plo

ymen

t in

co

nstr

ucti

on

by

youn

g p

eop

le

Str

ateg

ic O

bje

ctiv

e S

trat

egic

Targ

et (M

TE

F)K

PIs

Act

ual

Ach

ieve

men

t

2013

/201

4

Pla

nned

Targ

et

2014

/201

5

Act

ual

Ach

ieve

men

t

2014

/201

5

Dev

iati

on

fro

m p

lann

ed

targ

et t

o A

ctua

l

Ach

ieve

men

t fo

r 20

14/2

015

4. T

o en

sure

that

yo

unge

r and

old

er

peop

le w

ith lo

wer

le

vel l

angu

age

and

num

erac

y sk

ills

are

capa

cita

ted

to

unde

rtake

hig

her

leve

l the

oret

ical

and

pr

actic

al tr

aini

ng

in c

onst

ruct

ion

and

beco

me

empl

oym

ent

Deve

lop

a st

rate

gy,

incl

udin

g RP

L an

d Ad

ult

educ

atio

n an

d tra

inin

g.

Partn

ersh

ips

with

St

akeh

olde

rs

in th

e yo

uth

sect

or to

put

in

plac

e tra

inin

g fo

r tra

inin

g an

d w

ork

expe

rienc

e fo

r yo

ung

peop

le

Num

ber o

f tra

ined

on

skill

prog

ram

mes

:

Une

mpl

oyed

Empl

oyed

0 130

1000

4000

1103

186

Targ

et e

xcee

ded

due

to

the

allo

catio

ns m

ade

to th

e va

rious

ski

lls d

evel

opm

ent

initi

ativ

es

Targ

ets

not m

et d

ue th

e fa

ct

that

em

ploy

ers

are

relu

ctan

t to

rele

ase

thei

r wor

kers

for

train

ing

The

CET

A ha

s no

con

trol o

ver

the

unfu

nded

targ

ets

as th

ese

depe

nd o

n in

dust

ry fu

ndin

g an

d re

porti

ng th

e tra

inin

g to

th

e C

ETA

Num

ber o

f Num

ber o

f tra

ined

RP

L:

Une

mpl

oyed

Empl

oyed

Stra

tegi

es fo

r ad

ult R

ecog

nitio

n fo

r prio

r lea

rnin

g

have

bee

n de

velo

ped

2500

2500

1218

0

Alth

ough

the

CET

A pa

rtner

ed

with

Dep

t. Ru

ral D

evel

opm

ent

and

Land

Ref

orm

thro

ugh

the

Nar

ysec

pro

gram

me

whi

ch ta

rget

ed 3

500

lear

ners

th

roug

h RP

L, th

ere

proj

ect

real

ised

a s

low

upt

ake

due

to

lack

of l

earn

er in

tere

st.

The

CET

A ai

ms

to fu

lly im

plem

ent

this

by

2015

/16

nan

cial

yea

r.

Impl

emen

t stra

tegy

and

im

plem

ent p

roje

ct b

ase

on

RPL

polic

y5

55

Targ

et A

chie

ved

for a

ppro

ved

CET

A RP

L pr

ojec

ts

29


PR

OG

RA

MM

E 7

: Bui

ldin

g c

aree

r an

d v

oca

tio

nal g

uid

ance

Str

ateg

ic

Ob

ject

ive

Str

ateg

ic T

arg

et

(MT

EF)

KP

Is

Act

ual

Ach

ieve

men

t

2013

/201

4

Pla

nned

Targ

et

2014

/201

5

Act

ual

Ach

ieve

men

t

2014

/201

5

Dev

iati

on

fro

m p

lann

ed

targ

et t

o A

ctua

l

Ach

ieve

men

t fo

r 20

14/2

015

To e

nsur

e C

aree

r pa

ths

are

map

ped

to q

uali

catio

ns

in a

ll se

ctor

s an

d su

b-se

ctor

s, a

nd

com

mun

icat

ed

effe

ctiv

ely,

cont

ribut

ing

to

impr

oved

rele

vanc

e of

trai

ning

and

gr

eate

r mob

ility

and

prog

ress

ion

Cre

atio

n of

gui

danc

e to

dire

ct y

oung

peo

ple

to p

rogr

amm

es fo

r w

hich

they

hav

e an

ap

titud

e, a

nd w

hich

w

ill pr

ovid

e tra

inin

g in

ar

eas

need

ed in

the

econ

omy.

Upd

ate

care

er g

uide

ba

sed

on S

SP

Org

anizi

ng o

r pa

rtici

pate

in a

t lea

st

two

exhi

bitio

n pe

r qu

arte

r per

pro

vinc

e in

par

tner

ship

with

Sc

hool

s, p

ublic

TVE

T co

llege

s an

d H

EI’s

11 72

1 19

Targ

et A

chie

ved

Alth

ough

the

CET

A ha

d pl

anne

d to

con

duct

72

care

er

exhi

bitio

ns fo

r thi

s n

anci

al

year

, the

CET

A, in

par

tner

ship

w

ith th

e 50

TEV

T co

llege

s is

pl

anni

ng fo

r mor

e ex

hibi

tions

in

201

5/16

yea

r.

30


Pro

gra

mm

e 8:

Enc

our

agin

g b

ette

r us

e o

f co

nstr

ucti

on

wo

rkp

lace

s fo

r sk

ills

dev

elo

pm

ent

Str

ateg

ic

Ob

ject

ive

Str

ateg

ic

Targ

et (M

TE

F)K

PIs

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ual

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31


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33


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No

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Ms

Sonj

a Pi

lusa

CETA

CEO

Core Business Report

36


Mr Thapelo Madibeng - Core Business Executive

CETA Core Business has two distinct and interlinked departments to add value to its stakeholders in the construction sector: Core Business Department and Projects Department. The CETA Core Business performs the following primary functions as depicted on the skills value chain below:

• Planning and Reporting

• Learning Pathways and Quality Development

• Projects Management

• Monitoring and EvaluationCETA Skills Development Value Chain

WSP/ATR Research Quali cations Standards Materials Learning Pathways

Core Business Units/Departments:

Quality Assurance M & E

OVERVIEW OF THE CORE BUSINESS DEPARTMENT

The Core Business Department is primarily responsible for in uencing the course of training and skills development in the construction sector by ensuring that all training re ects the needs and requirements of sector. Construction occupational quali cations are developed and registered, learning programmes are quality assured; accredited training is monitored and evaluated; learners receive credible and recognised national certi cates.

37


The Core Business department is made up of three functional Units, namely:

Planning and Reporting (P&R) unit which is responsible for:

- conducting research

- developing the Sector Skills Plan (SSP) and career guides

- analysing Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) submitted by employers

- compiling reports submitted to the Department of Higher Education and Training

- capacity building of Skills Development Facilitators, support of policy and guidelines

- facilitating Inter-SETA transfers

The Unit is responsible for reporting on performance information as per Quarterly Monitoring Report (QMR), Annual Performance Report (APR) against the approved CETA Annual Performance Plan (APP).

Learning Pathways and Quality Development (LPQD) unit is responsible for:

- promoting quality learning through the development and registration of construction sector occupational quali cations and learning programmes

- the accreditation of training providers; and the registration of assessors and moderators

- registration of learners for various learning pathways and artisan development through the building or wet trades

Monitoring and Evaluation (M&E) unit is responsible for

- monitoring, evaluation, veri cation, external moderation and certi cation in promotion and assurance of quality

- learning interventions within the scope of the CETA

38


PLANNING AND REPORTING UNIT

Unit Structure

During the year under review, the Planning and Reporting unit had the following staff compliment:

• Specialist 1

• Planning and Reporting Of cers 1

• Administrator 1

Sector Skills Plan (SSP)

The CETA updated the Sector Skills Plan (SSP) for 2014/15 which highlights the skills that are scarce and critical for the sector by means of an updated PIVOTAL skills list. The SSP was timeously submitted to the Department of Higher Education and Training and will continue to be updated annually to re ect on areas where the construction sector skills development efforts should be channelled. The Sector Skills Plan was updated, approved by CETA Accounting Authority and submitted to the DHET for acceptance. The updated SSP has identi ed and incorporated the middle level skills needs for the Construction sub-sectors.

The DHET during the year under review engaged the CETA on the updates to the SSP documents by means of provision of feedback of which was incorporated prior to the submission. The CETA attended DHET Labour Market Intelligence workshops relating to the introduction of a new Framework for all SETA SSP updates and submissions to be used in the 2015/16 year. Time frames were also circulated to SETAs on the new due dates for submissions for inputs.

The CETA participated in the DHET-HSRC SSP policy and review discussions held on 29 September 2014 and 30 October 2014 to improve the quality of its SSP.

The SSP Timelines that CETA was to prepare the deliverables for this area were con rmed at the SSP Workshop held at Indlela on Wednesday 11 March 2015 as per below:

Date DHET Outcome

29 May 2015 SETA’s submit consolidated “WSP/ATR raw data” to DHET

Includes submission of Final updated PIVOTAL list 2014/15 (for previous nancial year)

15 June 2015 1st draft SSP 2015/16; 1st draft OFO based Pivotal list 2015/16 submitted to DHET

29 June - 08 July 2015 DHET SSP Feedback to SETA’s

Upload of updated OFO codes onto DHET Website

August 2015 Final SSP 2015/16 submitted

Final OFO based Pivotal Skills List 2015/16

03 August 2015 Final submission date for OFO update applications

14 August 2015 SETAs submit Cluster Evaluation Reports

31 August 2015 Final Updated SSP submitted as Annexure to the SP and APP

30 September 2015 Final SSP 2015/16 submitted SP and APP submitted

30 January 2016 Final OFO updated and published

39


The Career Guide

During the year under review, the CETA developed and approved a new career guide for the construction sector. CETA participated in a total of 19 Exhibitions and career guidance events during the 2014/15 year throughout the country which included:

Province Event

North West

Deputy President’s IMBIZO - Youth Development Expo

Launch - 16 Days of Activism

Closing Ceremony of 16 Days of activism

World AIDS Day 2014 Commemoration

Youth Entrepreneurial Summit

KZN

KZN Youth Development Summit

KZN Provincial Stakeholder Workshop

Umbumbulu Construction Business Day

DUT World of Work Careers Fair

Gauteng

Mandela Day

TSB Career Expo

Youth In Construction Expo

Limpopo Fetagomo Youth Brigade

Gauteng CETA Tshwane South College Career Expo

KwaZulu Natal

Umthashana TVET Career Expo

Nelson Mandela Youth Centre Career Expo

Greater Kokstad Municipality Skills Development Exhibition

Grosvenor Boys High School

CETA Core Business Policies reviewed and approved in 2014-2015 FY:

In the year under review, the CETA reviewed and developed its new policies which were developed and approved by the CETA Accounting Authority:

• Mandatory Grants Policy and Guidelines

• Performance Information Policy

• CETA Research Policy

• CETA Research Methodology

• CETA Research Agenda

• Bursary Policy

40


The WSP/ATR

The unit continued to support the Skills Development Facilitators (SDFs) with Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs). Capacity building workshops were conducted in all nine provinces on the revised Grant Regulations and the WSP/ATR online system.

The CETA has developed Mandatory Grant Submission Guideline; Training Manual for the entities in the Construction Sector. On the 10 Feb 2015, a total of 221 SDFs from all 9 Provinces received WSP/ATR Capacity Building Training from the CETA. The CETA has circulated the Scarce and Critical Skills list of SIPs for consideration by entities during the WSP Compilation and Submission Process. The CETA hosted the following workshops in the 9 provinces:

WORKSHOP PROVINCE NUMBER OF

STAKEHOLDERS

WSP and ATR Kwa-Zulu Natal 27

WSP and ATR Free-State 16

WSP and ATR Eastern Cape 35

WSP and ATR Northern Cape 10

WSP and ATR Western Cape 25

WSP and ATR Limpopo 23

WSP and ATR Kwa-Zulu Natal 36

WSP and ATR North West 18

This resulted in overall participation in the Mandatory Grant process as illustrated in the table below:Levy Paying Companies size Number of Companies

Small (0-49) 1093

Medium (50 -149) 556

Large (150+) 383

Total 2032

The chart below shows the distribution of the CETA’s levy paying members:

Levy Paying Entities

SMALL (0 - 49) MEDIUM (50 - 149) LARGE (150+)

41


In the 2014/15 nancial year, the CETA received a total of 1906 WSP and ATR submissions, as per table below:

WSP submissions per Company Size Number of Submissions

Small (0-49) 1031

Medium (50 -149) 522

Large (150+) 353

Total 1906

The tool for monitoring and evaluation of WSP and ATR is in place and deployed through the MIS system. The review mechanism includes quarterly meetings with the MIS supplier. The evaluation and monitoring guidelines for mandatory grant were developed and approved by the Accounting Authority.

Mandatory Grants Payments disbursed to construction entities amounted to R91,262,000.00. In the previous year a total of R74 ,635.000.00 was disbursed. This in an improvement in the disbursement of Mandatory Grants to construction entities.

42


InterSETA Transfers

During the year under review, the CETA received 33 inter-SETA transfer requests and 20 were approved and submitted to DHET for processing at the end of the Calendar year. This was for entities that wanted to move to other SETA’s respectively in the retail, agricultural, services and mining sectors due to incorrect sector classi cations. A total of 5 entities moved to CETA from other SETAs.

Quarterly Monitoring Report

As part of the monitoring the CETA’s progress towards the achievement of NSDSIII targets, performance information is reported to the Department of Higher Education and Training (DHET) on a quarterly basis. The CETA met its obligation of submitting the Quarterly Monitoring Report to DHET on learners entering learning programmes and learners completing various programmes. Submissions for quarterly reports were done as per below mandatory dates:

Quarter 1 15 July 2014

Quarter 2 15 October 2014

Quarter 3 15 January 2015

Quarter 4 15 April 2015

43


LEARNING PATHWAYS AND QUALITY DEVELOPMENT (LPQD) UNIT

The LPQD unit is accredited with the South African Quali cations Authority (SAQA) as per ETQA Regulations,1998 and under delegation from the Quality Council for Trades and Occupations (QCTO) to perform Education and Training Quality Assurance (ETQA) functions in the construction sector until March 2016.

LPQD Unit Structure

During the year under review, the LPQD unit had the following staff complement:

• Learning Pathways and Quality Development Of cers x 4 until January 2015. Two LPQD of cers were transferred to the PMU for career progression.

• The position of the Learning Pathways and Quality Development Specialist was lled during the year under review.

Highlights for the year under Review

The LPQD unit made a number of notable achievements during the year under review some of which are re ected hereunder:

• The unit successfully automated the practitioner registration letter and is currently live on the system and implemented. The turnaround time for accreditation letters has reduced signi cantly.

• The assistance by CETA provincial staff members at Head Of ce (LPQD Unit) has reduced the number of queries the unit has been receiving and issues regarding registrations of trade tests, apprenticeship and desktop evaluations.

• Furthermore, transfer of skills to provincial staff took place as part of this exercise, especially regarding requirements for registrations of trade tests and apprenticeships.

• The LPQD Unit’s Standard Operating Procedures (SOPs) developed and approved by Accounting Authority in the last quarter of the nancial year under review for implementation in 2015/2016 nancial year.

• Obtaining the Development Quality Partner (DQP) status and starting the process of developing Occupational Quali cations in partnership with SAFCEC. This process is continuing and will be completed in 2015/2016 FY.

• The CETA has allocated funding to the value of R7 319 255.00 for the QCTO DQP status and develop relevant quali cations:

- SAFCEC (South African Civil Engineering Contractors)

- MBAs (Masters Builders Associations)

- CESA (Civil Engineering South Africa)

- FITA (Flooring Industry Training Association)

The CETA also collaborating with other construction DQPs such as:

• NHBRC for the development of Building Inspector quali cation.

• TETA on the development of operator quali cations

The CETA has a draft OFO based quali cations framework for the construction sector as a footprint of

44


occupations in the construction sector and align current construction quali cations to occupations by OFO. This work would be re ned and completed in 2015/2016 nancial and will guide development of occupational quali cations where gaps exists.

The challenge experienced by the CETA is the registered QCTO quali cations which have not been implemented as yet. It is anticipated that the QCTO would announce its assessment process for the development of learnerships against the registered DQP quali cations.

The CETA is currently performing the role of Assessment Quality Partner under the QCTO for construction quali cations and is using the SAFCEC DQP process as a pilot model.

Support to TVET Colleges

Below is a tabled report of the accreditation status of the TVETs per province:

Province Total No of TVETs per province

Eastern Cape 8

Free State 4

Gauteng 8

KwaZulu Natal 9

Limpopo 7

Mpumalanga 3

Northern Cape 2

North West 3

Western Cape 6

TOTAL 50

To date, there are 42 TVETs which are programme approved/secondary accredited. Below is a list of all the FETCs which are completed:

Eastern Cape Province

East Cape Midlands TVET College NC: Community House Building (Fundamentals only) – Level 2

Ikhala TVET College NC: Building and Civil Construction – Level 3

NC: Community House Building – Level 2

King Hintsa TVET College NC: Community House Building – Level 2

King Sabatha TVET College NC: Community House Building – Level 2

Lovedale TVET College NC: Building and Civil Construction – Level 3

FETC: Plumbing – Level 4

Free State Province

Flavius Mareka TVET College NC: Community House Building – Level 2

Gold elds TVET College NC: Building and Civil Construction – Level 3


NC: Construction Roadworks – level 2

45


Motheo TVET College NC: Building and Civil Construction – Level 3


Gauteng Province

Central Johannesburg College NC: Community House Building - Level 2

Ekurhuleni East TVET College NC: Community House Building – Level 2

Ekurhuleni West TVET College NC: Building and Civil Construction – Level 3

Sedibeng TVET College NC: Community House Building – Level 2

Tshwane North College NC: Community House Building - Level 2

NC: Building and Civil Construction – Level 3

Tshwane South College NC: Community House Building - Level 2


FETC: Plumbing - Level 4

South West Gauteng College NC: Community House Building

KwaZulu-Natal Province

Coastal KZN TVET College NC: Building and Civil Construction – Level 3

NC: Electrical Engineering – Level 2

FETC: Plumbing - level 4

Pre – NQF: Bricklayer, Joiner and Wood Machinist; Carpentry; Painter & Decorator; Plasterer & Tiler; Plumber

Elangeni TVET College NC: Community House Building – Level 2

Majuba TVET College NC: Building and Civil Construction – Level 3


Further Education and Training: Plumbing – Level 4

NC: Electrical Engineering – Level 2 & 3

Thekwini TVET College Further Education and Training: Plumbing – Level 4


Umfolozi TVET College FETC: Plumbing - Level 4



NC: Building and Cili Construction – Level 3

Umgungundlovu TVET College NC: Electrical Engineering – Level 2 - 4

Limpopo Province

Capricorn TVET College NC: Building and Civil Construction – Level 3


46


Lephalale TVET College Further Education and Training: Plumbing – Level 4

NC: Construction – Level 4


NC: Construction Contracting – Level 3


Letaba TVET College NC: Building and Civil Construction – Level 3


Mopani South East TVET College NC: Building and Civil Construction – Level 3


Sekhukhune TVET College NC: Building and Civil Construction – Level 3


Vhembe TVET College Further Education and Training: Plumbing – Level 4

NC: Construction – Level 4


NC: Construction Contracting – Level 3

Mpumalanga Province

Ehlanzeni TVET College NC: Community House Building – Level 2

Gert Sibande TVET College NC: Building and Civil Construction – Level 3

Northern Cape Province

Northern Cape Urban TVET College NC: Building and Civil Construction – Level 3

North-West Province

Orbit TVET College NC: Community House Building – Level 2


TVETC: Plumbing – Level 4

Taletso TVET College NC: Community House Building – Level 2

Vuselela TVET College NC: Community Hose Building – Level 2

Pre – NQF: Bricklayer, Carpentry, Plumber

Western Cape Province

Boland TVET College NC: Community House Building – Level 2



NC: Construction Roadworks – Level 2

TVETC: Plumbing – Level 4

47


College of Cape Town NC: Community House Building – Level 2

NC: Hot Water System Installation – Level 2



Pre – NQF: Bricklayer, Carpentry, Plumber,

False Bay TVET College NC: Building and Civil – Level 3

Pre – NQF: Bricklayer, Wood machinist and Joiner, Plumber,

Northlink TVET College Further Education and Training: Plumbing – Level 4


Pre – NQF : Painter and Decorator

South Cape College NC: Community House Building – Level 2



West Coast TVET College NC: Community House Building – Level 2

Pre – NQF: Bricklayer, Bricklayer and Plasterer, Carpentry, Painter and Decorator, Plasterer and Tiler; Plumber

48


Accreditation of Training Providers

During the year under review, the CETA accredited the following training providers per Province:

Province No of Assessors

Eastern Cape 7

Free State 12

Gauteng 50

KwaZulu Natal 32

Limpopo 14

Mpumalanga 10

North West 7

Western Cape 10

Northern Cape 2

Grand Total 144

2.5 Registration of Assessors

Province No of Assessors

Eastern Cape 20

Free State 11

Gauteng 133

KwaZulu Natal 31

Limpopo 24

Mpumalanga 3

North West 10

Western Cape 22

Northern Cape 4

Grand Total 258

2.6 Registration of Moderators

Region No of Moderators

Eastern Cape 6

Free State 15

Gauteng 346

KwaZulu Natal 82

Limpopo 19

Mpumalanga 10

North West 18

Northern Cape 2

Western Cape 43

Grand Total 541

49


DEVELOPMENT OF OCCUPATIONAL QUALIFICATIONS

CETA OFO-Aligned Quali cations Framework

The unit has developed a OFO aligned quali cations framework. The framework captures construction quali cations by sub-sector, OFO code and the latest draft version includes Occupational quali cations that have been registered on SAQA and identi es gaps where the CETA can apply as a DQP and AQP to the QCTO in order to replace legacy quali cations with occupational quali cations.

DQP Status Report and progress

To date, CETA in partnership with South African Forum of Civil Engineering Contractors (SAFCEC) has been jointly approved by the Quality Council for Trades and Occupations (QCTO) to develop three occupational quali cations for the Civil Engineering sector as follows:

• OFO Code 641403: Civil Engineering Constructor (Civil Services Constructor)

• OFO Code 641403: Civil Engineering Constructor (Civil Structures Constructor)

• OFO Code 641403: Civil Engineering Constructor (Road Constructor)

The above quali cations once registered on the NQF, will replace the following current CETA and the associated learnerships:

• National Certi cate: Construction Roadworks (24133) NQF Level 2

• National Certi cate: Construction Roadworks (24173) NQF Level 3

• National Certi cate: Building and Civil Construction (65409) (Civil related electives) NQF Level 3

• National Certi cate: Construction Concreting (49016) NQF Level 3

• National Certi cate: Construction (49410) NQF Level 2

The occupational pro les have been developed and the core working group has been consulting with other experts in the civil industry.

Other quali cations in the pipeline for development are in partnership with FITA and the NHBRC.

The CETA submitted a list of all legacy quali cations to the QCTO and requested that they all be re-registered. The QCTO indicated that these quali cations will be re-registered and learners as the teach out period will be in 2019/20.

The following quali cations were re-registered:

Quality

Assuring

Body

Qual

IDQuali cation Title

Old

NQF

Level

New NQF LevelQual End

Date

Re

register

y/n

CETA 20486 National Certi cate: Surveying Level 4New Level

Assignment Pend.

30-Jun-12 30/06/2015

CETA 20487National Certi cate: Hydrographic Surveying

Level 4 NQF Level 04 30-Jun-12 30/06/2015

50


CETA 20488National Certi cate: Photogrammetry Surveying


CETA 20813National Certi cate: Construction Contracting


CETA 22991National Certi cate: Refractories Installation


CETA 22992National Certi cate: Refractories Masonry


CETA 23675National Certi cate: Management of Building Construction Processes

Level 5New Level

Assignment Pend.

30-Jun-12 30/06/2015

CETA 23683National Diploma: Management of Civil Engineering Construction Processes


CETA 24133National Certi cate: Construction: Roadworks


CETA 24173National Certi cate: Construction: Roadworks


CETA 24194National Certi cate: Construction Material Manufacturing

Level 4New Level

Assignment Pend.

30-Jun-12 30/06/2015





CETA 24273National Certi cate: Community House Building


CETA 24295National Certi cate: Timber Roof Erecting


CETA 24296National Certi cate: Construction: Installation of Floor Coverings


CETA 48636National Diploma: Structural Steelwork Detailing


CETA 48733National Diploma: Architectural Technology


CETA 48734National Certi cate: Architectural Technology

Level 5New Level

Assignment Pend.

30-Jun-12 30/06/2015

CETA 48817Further Education and Training Certi cation: Construction Materials Testing


51


CETA 48940National Certi cate: Construction: Plant Operations


CETA 48961National Certi cate: Construction: Crane Operations


CETA 49016National Certi cate: Construction: Concreting


CETA 49017National Certi cate: Construction Materials Testing


CETA 49022National Certi cate: Floor Covering Installation


CETA 49053National Certi cate: Supervision of Construction Processes

Level 4New Level

Assignment Pend.

30-Jun-12 30/06/2015

CETA 49058National Certi cate: Construction Materials Testing


CETA 49063National Certi cate: Geographical Information Sciences

Level 5New Level

Assignment Pend.

30-Jun-12 30/06/2015

CETA 49080National Certi cate: Construction: Advanced Crane Operations


CETA 49081National Certi cate: Construction: Advanced Plant Operations


CETA 49410 National Certi cate: Construction Level 2 NQF Level 02 30-Jun-12 30/06/2015

CETA 49411General Education and Training Certi cate: Construction


CETA 49602National Certi cate: Construction: Geotechnical


CETA 50022National Certi cate: General Draughting


CETA 57162National Certi cate: Aluminium Fabrication and Installation


CETA 58247National Certi cate: Ceiling and Partitioning Installation


CETA 58780Further Education and Training Certi cate: Quantity Surveying

Level 4 NQF Level 04 02-Dec-12 30/06/2015

CETA 58782Further Education and Training Certi cate: Plumbing


CETA 63589National Diploma: Geographical Information Science


52


CETA 65409National Certi cate: Building and Civil Construction


CETA 65709National Certi cate: Construction: Steelwork


CETA 65769 National Certi cate: Glazing Level 2 NQF Level 02 30-Jun-12 30/06/2015

CETA 65858National Certi cate: Hot Water System Installation


CETA 65877Further Education and Training Certi cate: Construction: Timber Vocations


CETA 65878Further Education and Training Certi cate: Construction: Trowel Vocations


CETA 65879 Diploma: Construction Technology Level 5 NQF Level 06 30-Jun-12 30/06/2015

CETA 65891Further Education and Training Certi cate: Construction: Plumbing


CETA 65892Further Education and Training Certi cate: Construction: Painting and Decorating


CETA 65895 Diploma: Construction: Plumbing Level 5 NQF Level 06 30-Jun-12 30/06/2015

CETA 65896Diploma: Construction: Painting and Decorating


CETA 65897Diploma: Construction: Trowel Vocations


CETA 65898Diploma: Construction: Timber Vocations


CETA 65929 National Certi cate: Waterproo ng Level 2 NQF Level 02 30-Jun-12 30/06/2015

CETA 65949Further Education and Training Certi cate: Supervision of Construction Processes


CETA 65969General Education and Training Certi cate: Human Settlements Development


CETA 65989Further Education and Training Certi cate: Human Settlements Development


CETA 66071Further Education and Training Certi cate: Computer Aided Drawing Of ce Practice (CAD)


53


CETA 66089National Certi cate: Human Settlements Development

Level 5New Level

Assignment Pend.

30-Jun-12 30/06/2015

CETA 67430National Certi cate: Electrical Engineering: Electrical Construction

Level 2 NQF Level 02Same as generic

quali cation30/06/2015

CETA 72070Further Education and Training Certi cate: Electrical Engineering: Electrical Construction



CETA 72073National Certi cate: Electrical Engineering: Electrical Construction



CETA 77063National Certi cate: Construction Health and Safety

Level 3 NQF Level 03 11-Mar-13 30/06/2015

CETA 83391National Certi cate: Community Development: Human Settlements



CETA Accreditation and Reporting to SAQA

The CETA’s accreditation by SAQA was extended to the end of March 2016. As part of its obligations owing from that accreditation, the CETA has successfully uploaded data onto the National Learner Records Database (NLRD), including learner enrolments and achievements against CETA-registered quali cations.

QCTO CERTIFICATION PROCESS FOR TRADES

• The Trade Test Regulations indicate that an accredited Trade Test Centre should submit trade test results to the NAMB and the SETA where the learner is registered.

• The CETA is currently in transition and still processing legacy trades certi cates requests (prior 2014) for Section 13 and 28 under Manpower Training Act Conditions of Apprenticeships and new trades certi cates under the new NAMB certi cation SOPs. The CETA is collaborating with the QCTO and NAMB during this process and would continue in the 2015/2016 nancial year.

Learning Pathways Registration

The following learning pathways were registered:

Learning Pathway RegistrationsLearnerships Employed 140

Learnerships Unemployed 2661

Skills Programmes Employed 184

Skills Programmes Unemployed 1103

Artisan Entered 2638

Total Registrations 6726

54


Challenges

Enhancement of the management information system (MIS) and addition of modules on the MIS system.

MONITORING AND EVALUATION UNIT

The Monitoring and Evaluation Unit was established during the administration period to speci cally ensure that the CETA’s quality assurance standards were being followed during project implementation. The unit was inculcated with a working philosophy to monitoring and evaluation, as well as developing and implementing new policies and procedures to ensure that the CETA’s exposure to high risk corrupt practices are minimised.

Goals and Objectives

The CETA’s Monitoring and Evaluation Unit’s objectives are based on, namely:

• Monitoring and evaluation of the implementation of learning programmes

• External moderation / veri cation

• Certi cation

M&E Divisional Structure

This unit is headed by a Monitoring and Evaluation Specialist, supported by two administrators.

• Specialist x 1

• Of cer x 1 (Vacant)

• Administrators x 2

Highlights of the Year Under Review

The M&E unit made a number of notable achievements during the year under review, some of which are re ected hereunder.

External Moderation of Training Providers

The function of external moderation resides in the Monitoring and Evaluation Unit. This ensures a segregation of functions between the accreditation of providers, which is under the Learning Pathways and Quality Development Unit and the monitoring of the accredited providers.

During the year under review, the CETA conducted the following 236 monitoring and evaluation visits:

Province No of Site Visits

Eastern Cape 2

Free State 14

Gauteng 87

KwaZulu Natal 50

Limpopo 36

Mpumalanga 18

55


Province No of Site Visits

North West 12

Western Cape 17

Northern Cape 0

Grand Total 236

Certi cation of Learners

The CETA issued a total of 1039 certi cates and 1089 statements of results. Following the migration of artisans to the National Artisan Moderation Body (NAMB), the CETA facilitated the issuance of 107 Trade Certi cates through QCTO. The CETA is still making progress towards addressing the certi cates.

Work Readiness

The CETA did work readiness in the North West for the Department of Public Works and Economic Development.

56


PROJECTS DEPARTMENT

PROJECTS DEPARTMENT ORGANOGRAM

The CETA Accounting Authority has approved the re-engineering of the Projects Management Unit which was previously structured as follows:

The Projects Management unit has now been re-engineered into a Projects Department and has ve functional sub-units as follows: Contracts management, Data management, Projects implementation, Strategic Projects and Projects Invoicing.

Below is the schematic representation of the Projects Department:

The SOP for the Projects Department has been approved by the CETA Accounting Authority in the last quarter of the nancial year for implementation in the 2015/2016 nancial year. The CETA has conducted a capacity building workshop with all relevant staff and are aligned to the project implementation activities.

57


PROJECTS:

CETA Funding Model

SETAs are nanced from the skills development levy which is paid and distributed as follows as prescribed in the Grants Regulations and Skills Development Levies Act:

% levies distribution as per the Gazette 35940 of SETA Grant Regulations of 03 December 2012, the new levy grants system guiding the CETA funding model:

Levy Grant system Element Allocation % Conditions

Total levy 100% 1% of Remuneration Costs

SARS Collection Fee 2.0% Maximum of 2%

NSF Administration 18% % prescribed by Minister

SETA Administration 10.5% Maximum of 0.5% is transferred by the CETA to QCTO

Mandatory Grant 20%Unclaimed Mandatory Grants are transferred to Discretionary Grants by 15 August

Discretionary Grant 49.5%Maximum of 80% is allocated by CETA to PIVOTAL and 20% to NON-PIVOTAL.

PIVOTAL programmes funded by the CETA are aligned to the Construction Sector Skills Plan. In terms of administration and management of the disbursement CETA PIVOTAL or discretionary grants funds, the CETA uses a performance based reimburse model when in approved entities are reimbursed for services rendered or training conducted and upon submission of an invoice subject to the CETA invoice compliance requirements.

58


CETA Discretionary Grants Commitments and discretionary grants report:

The CETA closing balance as at 31 March 2015 for discretionary grants projects was R1, 291 000 000.00. In the year under review, the CETA has disbursed a total of R194, 305 000.00 to compliant entities in the construction sector which represents a signi cant improvement from prior year. This expenditure performance is aligned with performance information achievements and training for over 50% of the CETA learning programmes projects has commenced in the year under review, learner completions are planned in the new year.

In the 2014/2015 nancial year the CETA Accounting Authority has approved an allocation of R165 475 000.00 of discretionary grants to qualifying entities in the construction sector.

Performance and Highlights of the CETA Projects Department

Commitment schedule:

As at year end, the CETA Accounting Authority has approved allocation for a total of 54 664 learners to undertake training in the construction sector programmes. The actual training that took place in the year under review in the construction sector and supported by the CETA is 13 994 learners.

The Project Management department has prepared the Commitments Schedule jointly with Projects Accounting Unit in Finance and updated it on a monthly basis which reconciles the committed amounts as per schedule to the signed acknowledgement letters. These commitments, which highlight all the committed amount per project is updated with the payment made on daily basis to entities implementing the projects after their claims have been paid.

At the end of each quarter the utilization amount (amount settled against the commitment) is compared to the payment details as recorded in the General Ledger so as to ascertain the correctness of the commitment gures.

During this year under review the commitment schedule which was isolating each nancial allocation year has been merged to have only one commitment schedule with all the projects allocated to a speci c entity listed under that entity. The nancial years 2011/2012, 2012/2013, 2013/2014 and 2014/2015 are in one commitment schedule. The table below summarises the allocations to learners in the commitment schedule for projects still active which are:

Funded Intervention2013/14 Audited Allocated

Learners

2014/15 Learners

Allocated / Adjusted

2014/15 Cumulative

Learners Allocated

2014/15 2 136 2 136

2013/14 18 188 -1 433 16 755

2012/13 19 971 -1 092 18 879

2011/12 14 564 2 330 16 894

Totals 52 723 1 941 54 664

The commitment schedule contains all the projects allocations ( both private and public entries)but it is important to highlight partnerships and strategic projects where CETA is partnering with TVET colleges, universities and other public entities to implement skills development through allocated discretionary grants. The following tables highlight the partnerships and strategic projects that CETA has with different

59


TVET colleges and other public entities, which involve 18 897 learners at the amount of R556 912 608. In addition to these projects there are partnerships with different TVET colleges and municipalities to build 14 skills development centres at the amount of R54 940 000.

PARTNERSHIP PROJECTS: CONSTRUCTION SKILLS DEVELOPMENT

CETA Project Name

1 Lephalale TVET College Apprenticeships and Learnerships Project

2 Mopani South East TVET Apprenticeships and Learnerships Project

3 Sekhukhune TVET College Learnerships, Apprenticeships and Short Skills Programmes Project

4 Gert Sibande TVET College Apprenticeships, Learnerships and Workplacements

5 West Coast TVET College Apprenticeships Project

6 Vuselela TVET College Apprenticeships and Learnerships Project

7 Umfolozi TVET Learnerships and Apprenticeships Project

8 Umgungundlovu TVET College Learnerships Project

9 King Hintsa TVET College Learnerships Bursary Project

10 Coastal TVET College Apprenticeships Project

11 Central University of Technology, Free State Apprenticeships Project

12 Motheo TVET College Learnerships Project

13 Esayidi TVET Apprenticeships Project

14 Majuba TVET College Apprenticeships Project

15 Vhembe TVET College Apprenticeships Project

16 Taletso TVET College Learnerships Project

17 CETA- Capricorn College TVET Learnerships and short skills programmes

18 College of Cape Town TVET College Apprenticeships

19 Gold elds TVET College Learnerships

20 Central Johannesburg College Leaderships Project

21 University of Venda bursary students including programme development, skills centre development Project

22 University of Johannesburg students placements and bursaries Project

23 Wits University Equity development posts Leaderships development and bursaries Project

24 Cape Peninsula University Of Technology workplacements and bursaries

25 University of Kwazulu Natal bursaries ( BSC Property Development

Total 5361 learners supported

60


SKILLS DEVELOPMENT CENTRES

LIST OF THE 13 CETA SKILLS DEVELOPMENT CENTRES AS APPROVED BY THE ACCOUNTING AUTHORITY

NoENTITY TO WHOM

ALLOCATION MADE

TVET COLLEGE

CENTRE ASSIGNED

TO

PHYSICAL

LOCATION OF

CENTRE

PROVINCE MUNICIPALITY

1.Gert Sibande TVET College

Gert Sibande TVET College

Bethal Mp umalanga Govan Mbeki

2.West Coast TVET College

West Coast TVET College

Vredendal Western Cape Matsikama

3.Zibambeleni Community Development Trust

UMgungundlovu TVET College

Muden KwaZulu Natal Umvoti

4.Esayidi TVET College

Esayidi TVET College

Ixopo KwaZulu Natal Ubuhlebezwe

5.Namaqua Municipality

Northern Cape Rural TVET College

Springbok Northern Cape Namaqua

6.Siyakhana Development Trust

Mthashana TVET College

Babanango KwaZulu Natal UMzinyathi

7.Mnambithi TVET College

Mnambithi TVET College

Bergville KwaZulu Natal UKhahlamba

8.Mthashana TVET College


Phongola KwaZulu Natal Phongola

9. University of Venda None Venda Limpopo Vhembe

10.Umfolozi TVET College

Umfolozi TVET College

Eskhaweni KwaZulu Natal Umhlathuze

11.

Boland TVET College (Anene Booysen Skills Development Centre)

Boland TVET College

Bredasdorp Western Cape Cape Agulhas

12.Our Lady of Ingwavuma


Ingwavuma KwaZulu Natal UMkhanyakude

13.Northern Cape Urban TVET College

Northern Cape Urban TVET College

De Aar Northern Cape Pixley ka Seme

The following were completed in the year under review

• University of Venda

• Umfolozi TVET College

• Our Lady of Ingwavuma

61


University of Venda Skills Development Centre

Vredendal Skills Development Centre

Anene Booysen Skills Development Centre

62


The CETA has established a partnership with the Department of Higher Education and Training to conduct a research on the Skills Development Institutes or Training Centres within the post school education and training system. The research would be conducted in the new year.Public Sector Support And Community Development Initiatives:

Project Name

1 EC Department of Rural Development & Agrarian Reform Short Skills Programmes and Learnerships

2 Limpopo Department of Public Works Apprenticeships and Internships

3 MRTT learnerships (Mpumalanga Regional Training Trust)

4 Nkomazi Local Municipality learnerships

5 Beaufort West Municipality Learnerships, Apprenticeships and Short Skills Programmes

6 Cape Agulhas Municipality Apprenticeships, Learnerships, RPL and training of staff

7Western Cape Department of Human Settlements Apprenticeships, Short Skills Programmes, RPL and trade testing

8 Mantsopa Municipality - Free State Province Learnerships, Short Skills Programmes and apprenticeships

9 Namaqualand District Municipality Apprenticeships and RPL

10 Mahikeng Local Municipality Apprenticeships, Learnerships, RPL

11 North West Department of Human Settlements Apprenticeships, Learnerships

12 North West Department of Public Works Apprenticeships and Learnerships

13 National Department of Human Settlements Learnerships, Apprenticeships and short skills programmes

14North West Department of Finances Economy and Enterprise Development, Apprenticeships, Learnerships, short skills and RPL

15 National Department of Rural Development Candidacy

16 Johannesburg Roads Agency SOC (Pty) Ltd Short skills programmes

17 Department of the Premier Free State apprenticeships, Learnerships, bursaries and short skills programmes

18Northern Cape Department of Agriculture and Rural Development apprenticeships, Learnerships, short skills programmes and entrepreneurship

19National Department of Public Works Candidacy, Apprenticeships, Bursary, Short skills programme, Internships and Learnerships

20 KZN Dept of Public Works Apprenticeships, Internships, workplacements, RPL and Trade test

21 Ngqushwa Local Municipality Learnerships and Short Skills Programmes

22 North West Of ce of the Premier Bursaries, Internships, RPL and Trade test

23 Of ce of the Premier – Free State Learnerships, Apprenticeships and skills programmes

24 Of ce of the Premier – Limpopo Learnerships and Apprenticeships

25 Of ce of the Premier – Mpumalanga Apprenticeships

26 Of ce of the Premier - Northern Cape Learnerships

27 Zibambaleni Community Learnerships and short skills programmes

28 Business against crime Learnerships and short skills programmes

TOTAL LEARNERS SUPPORTED - 13536

SMME: Promotion of Youth in Construction Project: The CETA AA has approved SMME project targeting youth in construction. There are 100 SMMEs targeted in all 9 provinces and a total of 300 bene ciaries to be trained on new venture creation learnership assessor and moderator courses. a total of 60 SMMEs have been supported in the year under review .

63


Launch of the Property Development Programme between CETA and The University of KwaZulu-Natal

64


Launch of the Property Development Programme between CETA and The University of KwaZulu-Natal

Corporate Services Report

66


CORPORATE SERVICES REPORT

The corporate services division consists of the following functional units:

• Human Resources

• Communication and Public Relations

• Administration and Travel

• Registry and Logistics

• Information and Communication Technology

HUMAN RESOURCES MANAGEMENT

The organisation continued with its recruitment process in line with the approved organisational structure, which began in the last nancial year. Whilst it advertised and conducted interviews and in some cases re-advertised for all its vacancies, the CETA could did not nd suitably quali ed persons to ll all of its vacancies. It, however, continues with its recruitment drive and shall endeavour to have all current vacancies lled in the next nancial year.

The CETA enhanced the capacities of the Supply Chain Management unit and the Projects Management unit to those of departments. Both new departments are led by a Manager, who is in turn is supported by a Specialist/s who oversee the day-to-day functions of the various units.

The Supply Chain Management unit was elevated to a Department with two functional and distinct units. The following new positions were created:

• Supply Chain Management Manager

• Supply Chain Management Acquisition Specialist

• Supply Chain Management Acquisition Of cer

• Supply Chain Management Acquisition Administrator

• Supply Chain Management Demand and Contract Specialist

• Supply Chain Management Demand and Contract Of cer

• Supply Chain Management Demand and Contract Administrator

The Projects Management unit was elevated to a Department with ve functional and distinct units. The following new positions were created:

• Projects Manager

• Contract Management Specialist

• Contract Management Of cer x two positions

• Contract Management Administrator x 2 positions

• Data Management Specialist

• Data Management Of cer x 4 positions

• Data Management Administrator x 2 positions

• Data Capturers x 5 positions

67


• Project Implementation Specialist

• Project Implementation Of cer x 6 positions

• Project Implementation Administrator x 3 positions

• Grants Customer Relations Management Specialist

• Grants Customer Relations Management Of cer x 2 positions

• Grants Customer Relations Management Administrator

• Invoicing Specialist

• Invoicing Of cers x 5 positions

• Invoicing Administrator

The following new appointments were made with the view of capacitating the organisation in line with the organogram:

• Core Business Executive

• Supply Chain Management Manager

• Provincial Administrator – Mpumalanga

• Provincial Coordinator – Western Cape

• Provincial Coordinator – Kwa-Zulu Natal

• Provincial Coordinator – Mpumalanga

• Planning and Reporting Specialist

• Monitoring and Evaluation Specialist

• Projects Accounting Specialist

• Supply Chain Management Acquisition Specialist

• Supply Chain Management Demand and Contract Specialist

• Learning Pathways and Quality Development Specialist

• Human Resources Specialist

• Registry and Logistics Specialist

• Information and Communications Technology Of cer

• Human Resources Of cer

• Supply Chain Management Of cer

• Provincial Of cers X2 – Gauteng

• Provincial Of cer – Mpumalanga

• Provincial Of cer – Kwa-Zulu Natal

• Provincial Of cer – Northern Cape

• Provincial Of cer – Eastern Cape

68


• Provincial Of cer - Limpopo

• Supply Chain Management Administrator

• Planning and Reporting Administrator

• Board Committee Secretaries X2

• General Assistant – Mpumalanga

• Data Capturer

69


The CETA organogram and structure is re ected hereunder:

70


BAC

K LE

FT T

O R

IGH

T: M

r Jab

ulan

i Jiy

ane

(Cor

pora

te S

ervi

ce M

anag

er);

Mr I

nnoc

ent N

genz

i (Pr

ojec

ts M

anag

er);

Ms

Tum

iso

Mph

uthi

(Sup

ply

Cha

in

Man

agem

ent M

anag

er);

Mr S

imph

iwe

Nen

e (A

ctin

g Fi

nanc

e M

anag

er);

Mr R

ober

t Thi

bela

(Cor

e Bu

sine

ss M

anag

er)

FRO

NT

LEFT

TO

RIG

HT:

Ms

Sonj

a Pi

lusa

(Chi

ef E

xecu

tive

Of

cer)

and

Ms

Velile

Ndl

ovu

(Chi

ef F

inan

cial

Of

cer)

INSE

RT M

r Tha

pelo

Mad

iben

g (C

ore

Busi

ness

Exe

cutiv

e)MA

NA

GE

ME

NT

71


CORE BUSINESS DEPARTMENT

72


CO

RE

BU

SIN

ES

S D

EPA

RT

ME

NT

73


74


CO

RP

OR

ATE

SE

RV

ICE

S D

EPA

RT

ME

NT

75


FINANCE DEPARTMENT

76


FIN

AN

CE

DE

PAR

TM

EN

T

77


PROVINCIAL NODES STRUCTURE

78


FREE STATE

GAUTENG

NORTHERN CAPE

79


EASTERN CAPE

80


KWAZULU NATAL

81


STAFF ESTABLISHMENT

Demographic

Pro leAfrican Coloured Indian White Total

Male Female Male Female Male Female Male Female Male Female

Executives 2 1 0 0 0 0 0 0 2 1

Managers 1 3 0 0 0 0 0 0 1 3

Coordinators 4 4 1 0 0 0 0 0 5 4

Specialists 5 8 0 0 0 0 0 0 5 8

Of cers 13 16 0 0 0 2 0 0 13 18

Administrators 4 18 0 0 0 0 0 0 4 18

General Assistants 4 13 0 1 0 0 0 0 4 14

TOTAL 33 63 1 1 0 2 0 0 34 66

New

Pro le African Coloured Indian White Total


Coordinators 1 1 1 0 0 0 0 0 2 1

Specialists 1 6 0 0 0 0 0 0 1 6

Of cers 7 3 0 0 0 1 0 0 7 4

Administrators 0 1 0 0 0 0 0 0 0 1


TOTAL 10 13 1 0 0 1 0 0 11 14

Resignations



Executives 1 0 0 0 0 0 0 0 1 0

Managers 0 1 0 0 0 0 0 0 0 1

Specialists 0 2 0 0 0 0 0 0 0 2

Of cers 1 1 0 0 0 0 0 0 1 1

Administrators 1 0 0 0 0 0 0 0 1 0

TOTAL 3 4 0 0 0 0 0 0 3 4

Discharged




TOTAL 0 1 0 0 0 0 0 0 0 1

82


Deceased




TOTAL 0 0 0 1 0 0 0 0 0 1

Bursaries



Manager 0 1 0 0 0 0 0 0 0 1

Of cers 0 3 0 0 0 0 0 0 0 3

TOTAL 0 4 0 0 0 0 0 0 0 4

Pensioned



Coordinators 1 0 0 0 0 0 0 0 1 0

Specialists 1 0 0 0 0 0 0 0 1 0

TOTAL 2 0 0 0 0 0 0 0 2 0

Staff Remuneration



R 1,864,116 - R 2,622,998 0 1 0 0 0 0 0 0 0 1

R 1,250,022 - R 1,864,116 1 0 0 0 0 0 0 0 1 0

R 844,609 - R 1,250,022 2 0 0 0 0 0 0 0 2 0

R 532,137 - R 844,609 6 6 0 0 0 0 0 0 6 6

R 337,062 - R 532,137 10 13 1 0 0 1 0 0 11 14

R 212,434 - R 337,062 6 17 0 0 0 1 0 0 6 18

R 133,887 - R 212,434 4 14 0 0 0 0 0 0 4 14

R 84,383 - R 133,887 4 12 0 1 0 0 0 0 4 13

TOTAL 33 63 1 1 0 2 0 0 34 66

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COMMUNICATION AND PUBLIC RELATIONS UNIT

The Communication and Public Relation Unit plays a critical role within and outside the organization.

The unit’s main role is to disseminate information about the CETA and its functions to its stakeholders. This information includes but not limited to Discretionary Grants projects, submission of Work Skills Plan (WSP), leanerships and CETA strategic plans.

The Unit efforts are meant to highlight the achievements, the milestones and interventions which include programmes that are aimed at providing innovative and productive skills development in the Construction Sector.

The Unit maintains and develop the CETA brand and reputation through marketing and communication interventions in support of the CETA.

Various articles were published in the Floors Magazine, which reaches stakeholders who are in one of the CETA’s subsectors. Eleven articles were published in the magazine

In the past nancial year the organization has been ready to go out to the public in forms of workshops, exhibition and launches.

The organisation held a sod turning event for the Bethal Skills Centre in March 2014, where the Honourable Deputy Minister of Higher Education Mr Mduduzi Manana attended

Stakeholder were invited to an Annual General Meeting where the Annual Financial Statements, Annual Report, Auditor-General and Acceptance for recommendations to the Director-General of the CETA’s annual budget and strategic plan were discussed with the stakeholders.

Most of the sessions were held in rural areas as part of the CETA mandate to ensure that people from different backgrounds advantaged or not get to know about the CETA functions and role.

It is important for the CETA to be visible in rural/disadvantaged areas as this is where most information is needed by the learners. Some learners are about to nish school or have dropped out from school for various reasons and don’t know of opportunities SETA’s can provide.

As part of being visible to rural communities and townships the CETA has established all of it provincial of ces in public TVET Colleges.

This ensures that the public has easy access to the CETA of ce. Learners at the TVET Colleges and members of the public near to the TVET Colleges can easily access the CETA unlike when the of ces are commercial spaces.

The CETA image was strongly promoted through the creation of corporate banners, website upgrade and various promotional items which cater for the different stakeholder requirements to enhance the CETA offerings.

Throughout the year under review the CETA undertook various communications and public relations activities, which among others included the following:

The CETA participated in the following events:

Ixopo Skills Centre Launch

Damcom Graduation

CETA/Prison Care and Support graduation

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DHET Mandela Day

Master Builders South Africa Congress

Deputy President Youth Development Expo

The CETA supported core business and partnered int the following career exhibitions:

Career Exhibition PROVINCE NUMBER OF LEARNERS

DHET Mandela Day Gauteng 210

Fetakgomo Youth Brigade Expo Limpopo 466

Deputy President Youth Expo North West 32

Launch of 16 Days of Activism North West 41

World Aids Commemoration North West 195

TSB Sugar RSA limited Career Expo Mpumalanga 779

Youth Development Summit North West 27

DUT Career’s Fair Kwa –Zulu Natal 119

Umbumbulu Construction Business Day Kwa-Zulu Natal 36

Youth in Construction Expo Gauteng 492

Mthashana TVET College Career Expo Kwa – Zulu Natal 291

Services SETA career Guidance/Skills Development Expo Kwa-Zulu Natal 183

The CETA hosted the following Career Exhibitions:

Career Exhibition PROVINCE NUMBER OF LEARNERS

Grosvenor Boys High School Kwa-Zulu Natal 138

CETA –Tshwane South College Career Expo Gauteng 699

TOTAL LEARNERS REACHED: 3 708

TOTAL STAKEHOLDERS REACHED: 190

The Unit contributed signi cantly in the changing of the look and feel of the organization to suit the new corporate image of CETA.

The following changes were done to the building to communicate the new corporate identity:

• The reception area and hallway were renovated to be aligned with the new corporate identity of the CETA and the vehicles were branded accordingly

85


86


87


INFORMATION and COMMUNICATION TECHNOLOGY (ICT) UNIT

The CETA considers ICT to be critically important in the delivery of the overall business strategy of the organization. ICT also plays a critical role in facilitating communication with internal and external stakeholders.

ICT DELIVERABLES DURING THE YEAR UNDER REVIEW

During the year under review the CETA appointed an ICT Governance and Strategy Consultant to lead the CETA in:

• Stabilizing and enhancing the ICT environment and making it secure and compliant by addressing Internal and External Audit issues.

• Implementing the Corporate Governance and Governance of ICT in a manner which is compliant with the requirements of the Central Government’s Department of Public Service and Administration (DPSA).

• Drawing up and implementing an ICT Strategy which is adequately aligned to the CETA’s Strategic and Business goals.

The consultant is the ICT Governance champion in terms of the Department of Public Service and Administration. Guidelines on the implementation of ICT Corporate Governance in state entities.

ICT PERFORMANCE

During the year under review:

• The CETA ICT environment was stabilized and secured. Communications systems such as email are running smoothly and have been opened up to the provincial sites through a comprehensive VoIP enabled MPLS network.

• Most Internal and External Audit issues have been resolved and the next ICT audit is expected to be clean.

• Corporate Governance and Governance of ICT have been and are still being rolled out in line with recommendations and timelines set by the Department of Public Services and Administration.

• A comprehensive ICT Strategy which is aligned to the CETA business and strategic goals has been constructed and approved by the CETA Board. Implementation of the ICT strategy plan through various ICT projects is already underway and is progressing well.

88


ADMINISTRATION AND TRAVEL UNIT

In the year under review the Administration and Travel Unit handled and managed all travel and accommodation arrangements of the CETA.

When doing a cost analysis the cost for car rental dropped by 80%.

The number of accommodation booked for staff including Board Members in the past nancial year is 342.and 402 ights were undertaken.

REGISTRY AND LOGISTICS UNIT

The Registry and Logistics Unit manages all logistical operations for the organization. Further, it is the registry centre for all document management processes (incoming and outgoing processes). This Unit has played a signi cant role in document management, Facilities Maintenance, Of ce Management, and Fleet Management within the organization with the view of improving customer services within the CETA and management of stakeholder documentation.

Logistics Section

In the year under review the CETA procured 12 vehicles for utilisation by staff when conducting CETA business. Procurement of vehicles within CETA was to lower operation costs.

Records Management Section

A lling System has been developed to address all records management challenges within the Organization. The plan incorporates all functions of the CETA systematically and will assist both paper based and electronic records management system.

Delivery of the CETA Vehicles

89


Finance Report

92


Ms Velile Ndlovu - CFO

General overview

CETA remains committed to sound management of funds in terms of PFMA, Treasury Regulations and SDL Act in order to maintain an unquali ed audit opinion. CETA continue to implement its policies and procedure to ensure that nancial statements presented are accurate, valid and complete.

Internal controls

Internal controls include a risk-based system of internal accounting and administrative controls designed to provide reasonable assurance that assets are safeguarded and that transactions are executed and recorded in accordance with generally acceptable accounting practice, as well as policies and procedures established by the Accounting Authority and independent oversight by the Audit and Risk committees. The system contains self-monitoring mechanisms and actions are taken to correct de ciencies as they are identi ed.

Financial Performance

Revenue

The total revenue for the year ending 31 March 2015 amounted to R640 million which is 17% higher than R546 million in 2013/14. Levy income increased by 13% from R488 million for the 2013/14 year to R551 million for the 2014/15 as a result of increase in levy paying companies. Interest received on investments increased by 35% from R46 million to R61million as a result of increase in the bank balance. All funds are currently invested with CPD and the average interest rates are quoted at 5%.

Expenditure

Total expenditure for the year ended 2014/15 amounted to R412 million increasing by 19% from R346 million in 2013/14 year. Total expenditure is made up of mandatory grants expenditure, Discretionary grants expenditure and Administrative expenditure. Mandatory grant expenditure increased from R75 million to R91 million representing 21 % increase. This is attributable to increase in submissions by the companies. Discretionary grants expenditure increased by 18% from R222 million in 2013/14 to R263 million in 2014/15 year. The increase is attributed to payments made to projects implemented in the current year.

Administration expenditure increased from R49 million in 2013/14 to R57 million in 2014/15. CETA kept its administrative expenditure below the regulated threshold of 10.5%. Employee costs increased by 39% from R26 million (2013/14) to R36 million (2014/15) as a result of vacant positions that were lled.

93


Major Cost Drivers

CETA major cost driver is the cost of employment as human resource is required for the execution of the mandate. The CETA uses Provincial of ce model for easier access of our stakeholders in the provinces.

Major Cost Drivers

3%

61%

20%

6%

1%

6%

4%

Cost of Employment

Advertising, Marketing and Promotions, Communications

Consultancy Fees

Travel and Subsistence

Auditors Remuneration

Other Expenses

Commitments

CETA has a commitment balance of R1 291 million. this amount has been committed to fund scarce and critical skills in the construction sector.

Financial Positions

Total Assets increased by 24% from R1 126 million in the 2013/14 to R1 400 million in 2014/15. The increase is attributable to capital assets purchased during the nancial year and increase in cash and cash equivalents due to delays in disbursements as a result of internal controls in place to ensure that all payments made are valid. All funds are currently invested with CPD.

94


Liabilities

CETA’s liabilities are made up of mandatory grants payables not made due to lack of suf cient bank details not submitted to disburse funds to the employers. Another major part relates to projects payments not yet paid at year end. Total liabilities is R123 million for 2014/15 re ecting increase of 58% from R78 million. The increase is attributable to payments due to entities as a result of the forensic audits.

Reserves

The 22% increase in total reserves from R1 049 million in 2013/14 to R1 277 million in 2014/15 was as a results of increase in surplus.

Irregular expenditure and fruitless and wasteful expenditure

The nancial statements re ect irregular expenditure of R3.7 million of which R3.1 comes from the prior year. R637 000 was incurred in the current year re ecting a decrease of 70% from R2.1 million incurred in the 2013/14 year.

Supply chain management

A supply chain management policy framework is fully implemented in line with the Preferential Procurement Framework Act and Supply Chain management Regulations. Procurement committees are appointed annually to ensure that procurement practices are adhered to by the CETA, we continue to manage irregular expenditure as a result of contracts which were irregularly entered into in the periods before the administration. Most of these contracts have since expired and some have been terminated.

Audit Committee Report

96


AUDIT COMMITTEE REPORT

We are pleased to present our report for the nancial year ended 31 March 2015.

Audit committee members and attendance

The audit committee consists of the members listed hereunder and should meet 4 times per annum as per its approved terms of reference. During the current year 3 number of meetings were held.

Name of member Number of meetings attended

Mogadime J (Chairperson) 4

Maboa J 4

Rankoe MD 3

Claasens M 4

Audit committee responsibility

The audit committee reports that it has complied with its responsibilities arising from section 38(10)(1) of the PFMA and Treasury Regulation 3.1.

The audit committee also reports that it has adopted appropriate formal terms of reference as its audit committee charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.

The effectiveness of internal control

The Audit Commi e is sa s ed that:

• The risk management process is in place

• The risk management process is in place and that CETA’s major risks are properly managed

• The internal control systems are effective

• The Internal Auditors are operating objectively and independently

• Matters requiring Management attention are being addressed.

Evaluation of nancial statements

The audit commi ee has:

• reviewed and discussed the audited nancial statements to be included in the annual report, with the AuditorGeneral and the members;

• reviewed the Auditor-General of South Africa management report and management’s response thereto;

• reviewed the entities compliance with legal and regulatory provisions;

• reviewed signi cant adjustments resulting from the audit.

The audit committee concur with and accept the Auditor-General of South Africa’s report on the nancial statements, and are of the opinion that the audited nancial statements should be accepted and read together with the report of the AuditorGeneral of South Africa.

97


Internal audit

The audit committee is satis ed that the internal audit function is operating effectively and that it has addressed the risks pertinent to the organisation and its audits.

Auditor-General of South Africa

The audit committee has met with the Auditor-General of South Africa to ensure that there are no unresolved issues.

Ms Jabu MogadimeChairperson of the Audit Committee

Report of the Auditor-General

100


Report of the Auditor General to Parliament on the Construction Education and Training AuthorityReport on the nancial statements Introduction

1. I have audited the nancial statements of the Construction Education and Training Authority set out on pages 108 to 145, which comprise the statement of nancial position as at 31 March 2015, the statement of nancial performance, statement of changes in net assets, cash ow statement and the statement of comparison of budget information with actual information for the year then ended, as well as the notes, comprising a summary of signi cant accounting policies and other explanatory information.

Accounting authority’s responsibility for the nancial statements

2. The accounting authority is responsible for the preparation and fair presentation of these nancial statements in accordance with the requirements of the South African Standards of Generally Recognised Accounting Practice (SA standards of GRAP) and the requirements of the Public Finance Management Act of South Africa , 1999 (Act no. 1 of 1999) (PFMA) and the Skills Development Act, 1998 (Act no.97 of 1998) (SDA) , and for such internal control as the accounting authority determines is necessary to enable the preparation of nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on these nancial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the nancial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the nancial statements.

5. I believe that the audit evidence I have obtained is suf cient and appropriate to provide a basis for my audit opinion.

Opinion

6. In my opinion, the nancial statements present fairly, in all material respects, the nancial position of the Construction Education and Training Authority as at 31 March 2015 and its nancial performance and cash ows for the year then ended, in accordance with SA Standards of GRAP and the requirements of the PFMA and SDA.

Emphasis of matter

7. I draw attention to the matter below. My opinion is not modi ed in respect of this matter:

101


Going concern

8. As disclosed note 26 to the nancial statements, the Construction Education and Training Authority’s (CETA) licence expires on 31 March 2016. As at the date of this report the minister of Higher Education and Training has not made a pronouncement on renewal of the SETA licences beyond 31 March 2016.

Report on other legal and regulatory requirements

9. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report ndings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report, non-compliance with legislation and internal control. The objective of my tests was to identify reportable ndings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.

Predetermined objectives

10. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected programmes presented in the annual performance report of the public entity for the year ended 31 March 2015:

• Programme 2: Increasing Access to Occupationally Directed Programmes in the Construction Sector on pages 19 to 24

• Programme 3: TVET (formerly known as FET colleges) Partnerships on page 25

• Programme 6: Increase uptake of training and employment in construction by young people on page 28

11. I evaluated the reported performance information against the overall criteria of usefulness and reliability.

12. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned programmes. I further performed tests to determine whether indicators and targets were well de ned, veri able, speci c, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).

13. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

14. The material ndings in respect of the selected programme are as follows:

Programme 2: Increasing Access to Occupationally Directed Programmes in the Construction Sector

Reliability of reported performance information

15. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. Signi cantly important targets in relation to the overall mandate of the entity were not reliable when compared to the source information or evidence provided. This was due to a lack of recording and monitoring of performance.

16. I did not identify any material ndings on the usefulness and reliability of the reported performance information for the following programmes:

102


• Programme 3: TVET (formerly known as TVET colleges) Partnerships.

• Programme 6: Increase uptake of training and employment in construction by young people.

Additional matters

17. I draw attention to the following matter:

Achievement of planned targets

18. Refer to the annual performance report on page(s) 14 to 33 for information on the achievement of the planned targets for the year. This information should be considered in the context of the material ndings on the reliability of the reported performance information for the selected programmes reported in paragraph 15 of this report.

Compliance with legislation

19. I performed procedures to obtain evidence that the public entity had complied with applicable legislation regarding nancial matters, nancial management and other related matters. My ndings on material non-compliance with speci c matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows:

Strategic planning and performance management

20. Effective, ef cient and transparent systems of risk management and internal controls with respect to performance information and management were not in place as required by section 51(1)(a)(i) of the PFMA.

Annual nancial statements

21. The nancial statements submitted for auditing were not prepared in accordance with the prescribed nancial reporting framework as required by section 55(1) (a) of the Public Finance Management Act. Material misstatements of discretionary grants, provisions, commitments and contingent liabilities identi ed by the auditors in the submitted nancial statements were subsequently corrected, resulting in the nancial statements receiving an unquali ed audit opinion.

Internal control

22. I considered internal control relevant to my audit of the nancial statements, annual performance report and compliance with legislation. The matters reported below are limited to the signi cant internal control de ciencies that resulted in the ndings on the annual performance report and the ndings on non-compliance with legislation included in this report.

Leadership

There was inadequate monitoring and evaluation (oversight responsibilities) by management to ensure validity, accuracy and completeness of reported performance information before nalisation and approval.

Financial and performance management

23. Management did not implement proper monitoring controls over nancial reporting, as a result material adjustments were made to the nancial statements and the performance report submitted for audit.

103


Other reports

Investigations

24. An independent consulting rm is performing an investigation at the request of the Department of Higher Education and Training. The investigation was initiated after anonymous emails were sent to the Accounting Authority and other stakeholders about allegations of possible fraudulent activities at the entity. The investigation is on-going.

Pretoria

29 July 2015

104


Annual Financial Statements

106


CONTENTS Page

Statement of Financial Performance 108

Statement of Financial Position 109

Statement of Changes in Net Assets 110

Cash Flow Statement 111

Statement of Comparison of Budget and Actual Amounts 112

Accounting Policies 113-124

Notes to the Financial Statements 125-145

107


The nancial statements set out on pages 108 to 145, which have been prepared on the going concern basis, were approved by the accounting authority on 29 May 2015 and were signed on its behalf by:

Sonja Pilusa Raymond CeleChief Executive Of cer CETA Chairperson

108


STATEMENT OF FINANCIAL PERFORMANCE

2015 2014

Note(s) R ‘000 R ‘000

Revenue

Revenue from non-exchange transactions

Transfer revenue

Levies 3 551 057 487 967

Fines, Penalties and Forfeits

Total revenue from non-exchange transactions

Revenue from exchange transactions

Other Income

4

6

27 774 12 257

578 831 500 224

7 13

Interest received - investment 5 61 419 45 562

Total revenue from exchange transactions 61 426 45 575

Total revenue 29 640 257 545 799

Expenditure

Employee cost 30 (35 579) (25 611)

Depreciation and amortisation (1 211) (765)

Finance costs 8 - (5)

Employer Grant and Project Expenses 32 (354 300) (297 632)

Administration Expenses 7 (21 210) (22 745)

Total expenditure (412 300) (346 758)

Operating surplus 227 957 199 041

Surplus for the year 227 957 199 041

109


STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2015

2015 2014

Note(s) R ‘000 R ‘000

Assets

Current Assets

Cash and cash equivalents 9 1 381 557 1 108 267

Receivables from non-exchange transactions 10 8 090 15 824

Receivables from exchange transactions 11 2 306 695

Consumables 12 212 246

1 392 165 1 125 032

Non-Current Assets

Property, plant and equipment 13 7 653 1 752

Intangible assets 14 669 89

8 322 1 841

Total Assets 1 400 487 1 126 873

Liabilities

Current Liabilities

Payables from non-exchange transactions 15 20 346 18 523

Payables from exchange transactions 16 17 312 33 548

Provisions 17 86 027 25 961

123 685 78 032

Total Liabilities 123 685 78 032

1 276 802 1 048 841

Funds and reserves

Administration reserve 8 322 1 841

Employer Grant reserve 295 761

Discretionary reserve 1 268 185 1 046 239

Total Net Assets 1 276 802 1 048 841

110


STATEMENT OF CHANGES IN NET ASSETS

Administration reserve

Employer grant reserve

Discretionary reserve

Total reserves Unappropriated surplus

R ‘000 R ‘000 R ‘000 R ‘000 R ‘000

Balance at 01 April 2013 2 153 462 847 184 849 799 -

Changes in net assets Surplus for the year - - - - 199 042

Allocation of unappropriated surplus 16 568 78 944 103 531 199 043 (199 042)

Excess reserves transferred from/to (16 880) (78 645) 95 524 (1) -

Discretionary reserve

Total changes (312) 299 199 055 199 042 -

Balance at 01 April 2014 1 841 761 1 046 239 1 048 841 -

Changes in net assets Surplus for the year - - - - 227 957

Allocation of unappropriated surplus 24 598 55 694 147 663 227 957 (227 957)

Excess reserves transferred from/to (18 117) (56 160) 74 283 6 -

Discretionary reserve -

Total changes 6 481 (466) 221 946 227 961

Balance at 31 March 2015 8 322 295 1 268 185 1 276 802 -

111


CASH FLOW STATEMENT

2015 2014

Note(s) R ‘000 R ‘000

Cash ows from operating activities

Receipts

Grants 571 652 492 433

Interest income 61 419 45 562

633 071 537 995

Payments

Employee costs (35 578) (26 503)

Payments to Suppliers and Stakeholders (316 436) (383 836)

(352 014) (410 339)

Net cash ows from operating activities 18 281 057 127 656

Cash ows from investing activities

Purchase of property, plant and equipment 13 (7 145) (458)

Proceeds from sale of property, plant and equipment 13 64 102

Purchase of other intangible assets

Net cash ows from investing activities

Cash ows from nancing activities

Finance Cost

Net increase in cash and cash equivalents

14 (686) (96)

(7 767) (452)

- (5)

273 290 127 199

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year 9

1 108 267 981 062

1 381 557 1 108 266

112


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113


Accounting Policies

1. Presentation of Financial Statements

The nancial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999).

These nancial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention unless speci ed otherwise. They are presented in South African Rand.

In the absence of an issued and effective Standard of GRAP, accounting policies for material transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 read with Directive 5. Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required or permitted by a Standard of GRAP.

A summary of the signi cant accounting policies, which have been consistently applied in the preparation of these nancial statements, are disclosed below.

1.1 Going concern assumption

These nancial statements have been prepared based on the expectation that the will continue to operate as a going concern for at least the next 12 months.

1.2 Property, plant and equipment

Recognition

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised as an asset when it is probable that future economic bene ts or service potential associated with the item will ow to the entity and the cost of the item can be measured reliably.

Initial Measurement

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Property, plant and equipment which has a cost price less than R 5 000 are expensed and not capitalised. Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition. Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item’s fair value was not determinable, it’s deemed cost is the carrying amount of the asset(s) given up.

The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment, where the entity is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories.

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1.2 Property, plant and equipment (continued)

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management. Major spare parts and stand by equipment which are expected to be used for more than one period are included in property, plant and equipment. In addition, spare parts and stand by equipment which can only be used in connection with an item of property, plant and equipment are accounted for as property, plant and equipment.

Subsequent measurement

Building machinery, furniture and xtures, motor vehicle, of ce equipment, computer equipment and computer network are carried at cost less accumulated depreciation and any impairment losses except for land and buildings which are carried at revalued amount being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Revaluation

When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset. Any increase in an asset’s carrying amount, as a result of a revaluation, is credited directly to a revaluation surplus. The increase is recognised in surplus or de cit to the extent that it reverses a revaluation decrease of the same asset previously recognised in surplus or de cit.

Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in surplus or de cit in the current period. The decrease is debited directly to a revaluation surplus to the extent of any credit balance existing in the revaluation surplus in respect of that asset.

The revaluation surplus in equity related to a speci c item of property, plant and equipment is transferred directly to retained earnings when the asset is derecognised.

Depreciation

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.

The depreciation of assets commences on the date that the asset is available for use, even if it is not yet in use.

Depreciation is calculated and provided for on an annual basis. If the residual value of an asset is at least equal to its carrying amount, depreciation will cease.

Any gains or losses arising from the de-recognition of an asset is included in pro t or loss when the item is derecognised.

Depreciation rates

The depreciation methods and average useful lives of property, plant and equipment have been assessed as follows:

Item Depreciation

method

Average useful

life

Furniture and xtures Straight line 4 years

Motor vehicles Straight line 5 years

Of ce equipment Straight line 4 years

115


Depreciation rates (continued)

Item Depreciation

method

Average useful

life

Computer equipment Straight line 3 years

Computer software Straight line 2 years

Residual values

Residual values of other assets are determined by considering the second hand values of similar items which are already at the age the asset is expected to be at the end of its useful life. This would be applicable especially to vehicles.

CETA reviews the residual values on an annual basis. The review revealed that the residual values used in the current or prior periods were still valid. No signi cant variances were identi ed.

1.3 Property, plant and equipment

Derecognition

The carrying amount of an item of property plant and equipment is derecognised on disposal or when there are no future economic bene ts expected from its use or disposal.

Gains and losses on disposal of property, plant and equipment are determined by reference to their carrying amount and are taken into account in determining operating pro t.

1.4 Intangible assets

An asset is identi able if it either is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identi able assets or liability, regardless of whether the entity intends to do so or arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the CETA or from other rights and obligations.

Recognition

An intangible asset is recognised when it is probable that the expected future economic bene ts or service potential that are attributable to the asset will ow to the CETA; and the cost or fair value of the asset can be measured reliably.

CETA assesses the probability of expected future economic bene ts or service potential using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measured at its fair value as at that date.

Initial Measurement

An intangible asset is initially measured at its cost and where an intangible asset is acquired at no cost or for a nominal cost, the cost is measured at its fair value as at the acquisition date.

Intangible assets which has a cost price less than R 5 000 are expensed and not capitalised.

116


1.4 Intangible assets (continued)

Subsequent measurement

Intangible assets are carried at cost less any accumulated amor sa on and any impairment losses.

Amortisation

The amor sa on period and the amor sa on method for intangible assets are reviewed at each repor ng date.Internally generated goodwill is not recognised as an intangible asset.Amor sa on is provided to write down the intangible assets, on a straight line basis, to their residual val-ues. The useful lives are detailed in note 15.

Derecognition

Intangible assets are derecognised on disposal when no future economic bene ts or service poten al are expected from its use or disposal.The gain or loss is the di erence between the net disposal proceeds, if any, and the carrying amount. It is recognised in surplus or de cit when the asset is derecognised.

1.5 Discretionary grants

The funding for discretionary grants and projects stems from the 49.5% of the total levies paid by the employers, levy grants that are not claimed by employers, the surplus of administration levies not utilised, investment income, and other income generated by the CETA.

CETA may out of any surplus monies determine and allocate discretionary grants to employers, education and training providers and workers of the employers who have submitted an application for a discretionary grant in the prescribed form within the agreed upon cut - off period. The grant payable and the related expenditure are recognised when the application has been approved and the conditions have been met, creating an obligation to pay.

1.6 Project expenditure

Project expenditure comprise:

• costs that relate directly to the speci c contract;

• costs that are attributable to contract activity in general and can be allocated to the project; and

• such other costs as are speci cally chargeable to CETA under the terms of the contract.

Such costs are allocated using methods that are systematic and rational and are applied consistently to all costs having similar characteristics.

Such costs are allocated using methods that are systematic and rational and are applied consistently to all costs having similar characteristics.

Project costs are recognised as expenses in the period in which they are incurred and approved. A receivable is recognised net of a provision for irrecoverable amounts for incentive and other payments made to the extent of expenses not yet incurred in terms of the contract.

At the end of the nancial period any unspent or uncommited funds must be transferred to the National Skills Fund Authority with an allowance of 5% of the uncommited funds that will be carried over to the next nancial year, except where a request to carry forward the uncommited funds has been lodged as per the

117


1.6 Project expenditure (continued)

Grant Regulations requirements. The unspent funds are determined by taking the surplus as stated in the Statement of Financial Performance for the nancial period under review less the commitments for training of learners in programmes funded from discretionary funds.

1.7 Administrative expenditure

The funding for administrative expenditure is derived from 10.5% of the total levies paid by the employers. Administration expenses consist of the operational expenditure incurred by the CETA in delivering its mandate.

1.8 Budget information

The approved budget covers the scal period from 01/04/2014 to 31/03/2015. The nancial statements and the budget are on the same basis of accounting therefore a comparison with the budgeted amounts for the reporting period have been included in the Statement of Comparison of Budget and Actual amounts. There are no timing differences on the budget to actual information.

118


1.9 Related parties

Members of the Accounting Authority and employees are required to disclose their interest in any contracts that CETA is entering into with an outside party. Inter-SETA transactions and balances arise due to the movement of employers from one SETA to another. Transactions with related parties are supposed to occur under terms and conditions that are no less favourable than those available under similar arm’s length dealings.

1.11 Financial instruments

The effective interest method is a method of calculating the amortised cost of a nancial asset or a nancial liability (or group of nancial assets or nancial liabilities) and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the nancial instrument or, when appropriate, a shorter period to the net carrying amount of the nancial asset or nancial liability. When calculating the effective interest rate, CETA shall estimate cash ows considering all contractual terms of the nancial instrument (for example, prepayment, call and similar options) but shall not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate (see the Standard of GRAP on Revenue from Exchange Transactions), transaction costs, and all other premiums or discounts. There is a presumption that the cash ows and the expected life of a group of similar nancial instruments can be estimated reliably. However, in those rare cases when it is not possible to reliably estimate the cash ows or the expected life of a nancial instrument (or group of nancial instruments), the CETA shall use the contractual cash ows over the full contractual term of the nancial instrument (or group of nancial instruments).

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.

A nancial asset is cash, residual interest of another entity, a contractual right to receive cash or another nancial asset from another entity exchange nancial assets or nancial liabilities with another entity under conditions that are potentially favourable to the CETA.

A nancial liability is any liability that is a contractual obligation to deliver cash or another nancial asset to another entity or exchange nancial assets or nancial liabilities under conditions that are potentially unfavourable to the CETA.

Classi cation

The CETA has the following types of nancial assets (classes and category) as re ected on the face of the statement of nancial posi on or in the notes thereto:

Class Category

Receivables from non-exchange transactions Financial assets measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method.

Receivables from exchange transactions Financial assets measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method.

Cash and cash equivalents Financial assets which comprise of cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insigni cant risk of changes in value.

119


1.11 Financial instruments (continued)

The CETA has the following types of nancial liabilities (classes and category) as re ected on the face of the statement of nancial position or in the notes thereto:`

Class Category

Provisions Financial liabilities are initially measured at fair value, and are subsequently measured at amortised cost.

Payables from exchange transactions Financial liabilities are initially measured at fair value, and are subsequently measured at amortised cost.

Payables from non-exchange transactions Financial liabilities are initially measured at fair value, and are subsequently measured at amortised cost..

Offsetting

Financial assets and nancial liabilities are offset if there is any intention to realise the asset and settle the liability simultaneously and a legally enforceable right to set off exists.

1.12 Leases

Leases of assets under which all the risks and bene ts of ownership are effectively retained by the lessor are classi ed as operating leases. Payments made under operating leases are charged to the statement of nancial performance based on the straight-line method. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination take place. The CETA does not hold any nance leases.

1.13 Consumables

Consumables are recognised as an asset on the date of acquisition and are measured at the cost of the acquisition. Consumables are valued at the lower of cost or net replacement value. Consumables are recognised as an asset if it is probable that future economic bene ts or service potential associated with the item will ow to the entity and they can be measured reliably.

1.4 Reserves

Reserves are sub-classi ed in the Statement of nancial position between the following funds and reserves:

• Administration reserve

• Employer grant reserve

• Discretionary reserve

This sub-classi cation is made based on the restrictions placed on the distribution of monies received in accordance with the

Regulations issued in terms of the Skills Development Act, Act No 97 of 1998 as amended.

120


1.14 Reserves (continued)

Member employer company levy payments are set aside in terms of the Skills Development Act, Act No 97 of 1998, as amended and the regulations issued in terms of the Act, for the purpose of:

2015 2014

% %

Administration costs of the CETA 10.50 10.50

Discretionary Grant 49.50 49.50

Mandatory Grant 20 20

National Skills Fund 20 20

100 100

In addition, contributions received from public service employers in the national or provincial spheres of government may be used to pay for CETA administration costs.

Interest and penalties received from South African Revenue Services as well as interest received on investments are utilised for discretionary grants and projects. Other income received are utilised in accordance with the original source of the income.

Surplus funds in the administration reserve and unallocated funds in the employer grant reserve are moved to the discretionary fund reserve. Reserves are created based on the accrual basis of accounting.

Contributions from Public Service Split

Administration 1/3

Discretionary Grants 2/3

1.15 Employee bene ts

De ned contribution plans

The CETA provides for retirement bene ts for all its permanent employees through a de ned contribution scheme that is subject to the Pension Funds Act, 1956 as amended. Contributions are at a rate of 15% of pensionable emoluments of which members contribute 7.5%.

The CETA’s contribution to the de ned contribution plans are charged to the Statement of Financial of Financial Performance in the year to which they relate and there is no further liability for the CETA.

1.16 Provision, accruals and contingencies

Provisions are recognised when CETA has a present obligation as a result of a past event and it is probable that this will result in an out ow of economic bene ts that can be estimated reliably.

Provisions are recognised when the CETA has a present legal or constructive obligation as a result of past events, and it is probable that this will result in an out ow of economic bene ts that can be estimated reliably. Long-term provisions are discounted to net present value.

Provision for levies exempt companies

Exempt companies’ provision includes employers who continued paying skills development levies even though they are exempt in terms of Skills Development Act.

121


1.16 Provision, accruals and contingencies (continued)

Accrual for employee entitlements

The cost of other employee bene ts is recognised during the period in which the employee renders the related service Employee entitlements are recognised when they accrue to employees. An accrual is made for the estimated liability as a result of services rendered by employees up to the last day of the nancial year. Leave accruals are included under payables from exchange transactions in the statement of nancial position based on the current salary rates and latest approved increases. Also included under payables from exchange transactions are trade payables.

Provisions for grants

Mandatory

A provision is recognised for grant payments due once the speci c criteria set out in the regulations to the Skills Development Act, 97 of 1998, as amended has been complied with by member companies and it is probable that the CETA will approve the payment. The measurement of the obligation involves an estimate, based on the established pattern of past practice of approval for each type of grant.

Discretionary

No provision is made for projects approved at year-end, unless the service in terms of the contract has been delivered or the contract is of an onerous nature. Where a project has been approved, but has not been accrued for or provided for, it is disclosed as commitment in the notes to the nancial statements.

1.7 Contingent assets and contingent liabilities

A contingent liability is a possible obligation that arises from past events, and whose existence will be con rmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly in the control of the entity.

A contingent asset is a possible asset that arises from past events, and whose existence will be con rmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly in the control of the entity Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 25.

1.18 Revenue from exchange transactions

Revenue from exchange transactions is recognised when it is probable that future economic bene ts or service potential will ow to the Ceta and these bene ts can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable. The only exchange revenue received by the CETA is the interest earned on the investment when the conditions are met.

Investment income

Interest income is accrued on a time proportion basis, taking into account the principal outstanding and the effective interest rate over the period to maturity.

122


1.19 Revenue from non-exchange transactions

Skills Development Levy Income

The accounting policy for the recognition and measurement of skills development levy income is based on the Skills Development Act, Act No 97 of 1998, as amended and the Skills Development Levies Act, Act No 9 of 1999, as amended.

In terms of section 3(1) and 3(4) of the Skills Development Levies Act, 1999 (Act No. 9 of 1999) as amended, registered member companies of the CETA pay a skills development levy of 1% of the total payroll cost to the South African Revenue Services (SARS), who collect the levies on behalf of the Department. Companies with an annual payroll cost less than R500 000 are exempted in accordance with section 4(b) of the Levies Act as amended, effective 1 August 2005.

80% of Skills Development Levies are paid over to the CETA (net of the 20% contribution to the National Skills Fund (NSF)). The CETA was not in a position to verify that SARS has collected all potential skills levy income.

Skills Development Levy (SDL) transfers are recognised on an accrual basis when it is probable that future economic bene ts or service potential will ow to the CETA and these bene ts can be measured reliably. This occurs when the Department makes an allocation to the CETA as required by Section 8 of the Skills Development Levies Act, 1999 (Act No. 9 of 1999) as amended.

Revenue is adjusted for transfers between the SETAs due to employers changing SETAs. Such adjustments are separately disclosed as inter-SETA transfers. The amount of the inter-SETA adjustment is calculated according to the most recent Standard Operating Procedure issued by the Department. Skills Development Levy (SDL) transfers are recognised on an accrual basis when it is probable that future economic bene ts or service potential will ow to the CETA and these bene ts can be measured reliably. This occurs when the Department of Higher Education makes an allocation to the CETA, as required by Section 8 of the Skills Development Levies Act, 1999 (Act No. 9 of 1999) as amended.

Interest and penalties

Interest and penalties are economic bene ts or service potential received or receivable by CETA, as determined by legislation, as a consequence of the breach of laws or regulations and is recognised on an accrual basis.

Conditional Grants and receipts

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the CETA has complied with any of the conditions embodied in the agreement. To the extent that the conditions have not been met, a liability is recognised.

Funds allocated by the National Skills Fund for Special Projects

Funds transferred by the National Skills Fund (NSF) are accounted for in the nancial statements of the CETA as a liability until the related eligible special project expenses are incurred. The liability is reduced by any project expenditure incurred and recognised as revenue. Property, plant and equipment acquired for NSF Special Projects are capitalised in the nancial statements of the CETA, as the CETA controls such assets for the duration of the project. Such assets may however only be disposed of in terms of agreement and speci c written instructions by the NSF.

123


1.19 Revenue from non-exchange transactions (continued)

Inter-SETA Transfers

Revenue is adjusted for transfers of employers between SETAs that arise due to incorrect allocation to a SETA on registration for skills development levy or changes to their business that result in a need to change SETAs. Such adjustments are disclosed separately as inter-SETA transfers. The amount of the inter-SETA transfers is calculated according to the most recent Standard Operating Procedure as issued by the Department of Higher Education and Training.

1.20 Borrowing costs

Borrowing costs are interest and other expenses incurred by an entity in connection with the borrowing of funds. Borrowing costs are recognised as an expense in the period in which they are incurred.

1.21 Comparative gures

Where necessary, comparative gures have been adjusted to conform to changes in presentation in the current year.

1.22 Irregular, fruitless and wasteful expenditure

Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable legislation, including:

• The PFMA,

• The Skills Development Act, Act No 97 of 1998 as amended,

Where irregular expenditure was incurred in the previous nancial year and is only condoned in the following nancial year, the register and the disclosure note to the nancial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identi ed during the current nancial year and which was not condoned by the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law.

Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accounting of cer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to the nancial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against the relevant programme/expenditure item, be disclosed as such in the note to the nancial statements and updated accordingly in the irregular expenditure register.

Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable care been exercised.

All irregular, fruitless and wasteful expenditure is charged against income in the period to which it relates and disclosed in the period it was rst discovered.

124


1.23 Taxation

No provision has been made for taxation, as CETA is exempt from income tax In terms of Section 10 of the Income Tax Act, (Act 58 of 1962).

1.24 Value Added Taxation (VAT)

The Revenue Laws Amendment Act, (Act No.45 of 2003) commenced on 22 December 2003. Previously the de nition of enterprise placed Sectorial Education and Training Authorities (SETA) in Schedule 3A within the scope of VAT. The Amendment Act, however has amended this de nition of enterprise and effectively places the public entity outside the scope of VAT; effective 1 April 2005.

1.25 Subsequent events

Subsequent events are all events that occur between the reporting date and the date on which the nancial statements are authorised for tabling in parliament.

Adjusting events are all the events that con rm the nancial performance and position of the SETA at year-end and if material the nancial statements are adjusted accordingly.

125


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65 6

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126


NOTES TO THE FINANCIAL STATEMENTS2015

R ‘000

2014

R ‘000

3. SKILLS DEVELOPMENT LEVY INCOME FROM NON-EXCHANGE REVENUE

The total levy income per the Statement of Financial Performance is as follows:

Levy income: Administration

Levies in cash 74 608 62 166

Levies received from SARS 70 642 54 015

Government levies received 3 955 8 259

Inter-SETA transfers in 11 (128)

Inter-SETA transfers out - 20

Levies accrued (90) 3 527

74 518 65 693

Levy Income: Employer Grants





Levies accrued 1 018 18 731

146 955 153 579

Levy income: Discretionary Grants



Government levies received 7 909 -



Levies accrued (1 469) 6 063

329 584 268 696

Grand Total 551 057 487 968

127



R ‘000

2014

R ‘000

4. Levies, interest and penalties

Levies received

Skills Development Levy: penalties and interest

from non-exchange transactions 27 774 12 257

27 774 12 257

5. Investment income

Interest income

Bank 61 419 45 562

61 419 45 562

6. Other income

Other income comprises:

Other Income - Fin 7 13

7 13

7. Administration expenses

Advertising 2 338 4 640Auditors remuneration 2 766 3 042Bank charges 75 100Cleaning 142 47Computer expenses 262 253Consulting and professional fees 3 443 4 825Entertainment - 3Insurance 579 432Conferences and seminars 81 182Medical expenses 692 903Fuel and oil 61 -Postage and courier 10 8Printing and stationery 802 733Subscriptions and membership fees 283 127Telephone and fax 745 951Training 41 75Travel - local 831 1 697Assets expensed 656 212

128



R ‘000

2014

R ‘000

7. Administration expenses (continued)

Electricity 277 348Operating Lease Rentals (Property, Plant and Equipment) 101 115Operating Lease Rentals (Buildings) 1 664 2 002Remuneration to members of the Accounting Authority 968 823Remuneration to members of the Audit Committee 58 72Other interest 5 7Repairs and Maintenance 631 2Other expenses 3 700 1 145

21 211 22 744

8. Finance costs

Finance Cost - 5

- 5

9. Cash and cash equivalents

Cash on hand 3 12Bank balances 1 381 555 1 108 255

1 381 558 1 108 267

As required in Treasury Regulation 31.2, National Treasury approved the banks where the bank accounts are held. The weighted average interest rate on short term bank deposits was 5% (2014 : 5.5%).Treasury Regulation 31.3 requires that, unless exempted by the National Treasury, the SETA as a public entity that is listed in Schedule 3A of the Act must invest surplus funds with the Corporation for Public Deposits.For the purposes of the cash ow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks, and investments in money market instruments.

10. Receivables from non-exchange transactions

SARS Employer receivables - Prior years 8 030 15 794

SARS Employer receivables - current year 60 30

8 090 15 824

11. Receivables from exchange transactions

Trade debtors 600 587

Staff debtors 178 106

Project debtors (NSFAS) 1 523 -

Prepaid expenses 5 2

2 306 695

129



R ‘000

2014

R ‘000

12. Consumables

Consumable stores 212 246

212 246

130


NO

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131



R ‘000

2014

R ‘000

14. Intangible assets

2015 2014Cost Accumulated

amortisation and

accumulated impairment

Carrying value

Cost Accumulated amortisation

and accumulated

impairment

Carrying value

Computer software, other 1 047 (378) 669 387 (298) 89

Reconciliation of intangible assets - 2015

Opening balance Additions Amortisation Total

Computer software, other 89 686 (106) 669

Reconciliation of intangible assets - 2014

Opening balance Additions Amortisation Total

Computer software, other 91 96 (98) 89

15. Payables from non-exchange transactions

Levy creditors 13 749 11 315

SARS Payable 426 169

Skills development mandatory grants 6 171 7 039

20 346 18 523

16. Payables from exchange transac ons

Trade payables - Projects 11 483 18 126

Trade payables - Admin 599 863

Accrued leave pay 851 619

Admin Accrued expenses 3 540 22 31

Projects Accrued expenses - 10 978

Operating lease payables 186 227

Other creditors 616 367

Sundry Creditors - Credit Card - 100

NSF Lay-off scheme 37 37

17 312 33 548

132



R ‘000

2014

R ‘000

16. Payables from exchange transac ons (continued)

Leave pay accrual

Opening carrying amount 619 751

Additions 35 32

Amounts utilised (63) (175)

Change in provision 260 11

Carrying amount 851 619

Leave is calculated based on leave days outstanding at year end and the total cost of employment. Change in provision is due to salary increases and leave.

17. Provisions

Reconciliation of provisions - 2015

Opening Balance

Transfers to Discretionary

grants

Provision for the current

year

Change in provision

Total

Employers refund 17 114 (3 221) 2 758 1 004 17 655

Other mandatory grant provisions 913 - - 5 432 6 345

Legal fees - - - 9 170 9 170

Other provisions 7 934 - 44 922 - 52 856

25 961 (3 221) 47 680 15 606 86 026

Reconcilia on of provisions - 2014

Opening Balance

Transfers to Discretionary

grants

Provision for the current

year

Change in provision

Total

Employers refund 25 508 (12 562) 1 462 2 706 17 114

Other mandatory grant provisions 9 752 - (8 839) - 913

Legal fees 2 000 - (2 000) - -

Other provisions - - - 7 934 7 934

37 260 (12 562) (9 377) 10 640 25 961

133



R ‘000

2014

R ‘000

17. Provisions (continued)

Employers refund

Admininistration Levy 2 787 2 156

Employer Levy Grants 5 565 9 682

Discretionary Grants Levy 9 303 5 276

17 655 17 114

Provisions Employer Refund R17 655 000 (2014: R17 114 000) relates to levies incorrectly contributed by employers, and paid by SARS and DHET, despite being exempted from contributing SDL due to legislation which came into effect 1 August 2005. The change was effected by the Skills Development Circular No.09/2013 states that SETAs should keep the provision for no longer than ve years as stipulated in terms of section 190(4).

18. Cash generated from operations

Surplus 227 957 199 042

Adjustments for:

Depreciation and amortisation 1 211 765

Finance costs - Finance leases - 5

Movements in provisions 60 061 (11 300)

Changes in working capital:

Consumables 33 (147)

Receivables from exchange transactions (1 609) 1 783

Other receivables from non-exchange transactions 7 734 (9 436)

Payables from exchange transactions (16 234) (11 725)

Taxes and transfers payable (non exchange) 1 904 (41 331)

281 057 127 656

134



R ‘000

2014

R ‘000

19. Commitments

Discre onary Reserves

Discretionary Expenditure 1 291 310 1 297 629

Discretionary reserve (Prior Years Allocation)

PROGRAMMES

Opening

Balance

2013/14

Restatements

Allocations/

Adj

ustments

Payments

2014/15

Closing

Balance

31 March

2015

R’000 R’000 R’000 R’000 R’000

Accademic Development: JNR Lecturer 1 000 - - (1 000) -

Addition of a Construction Development Wing in the incubation centre

1 000 - - - 1 000

Apprenticeship 321 315 14 220 73 291 (59 352) 349 474

Associate Lecture Positions 1 720 - - - 1 720

Bursaries 50 598 3 512 140 (18 162) 36 088

Candidacy 66 759 - 28 680 (14 176) 81 263

Development of Academic Programme 5 000 - - (1 063) 3 937

DQP Status 7 319 - - (475) 6 844

Enterpreneurship And Mentorship 720 - - - 720

Equity Development Post 2 580 - - - 2 580

Establishment And Development of Cooperatives

25 775 - - (2 713) 23 062

Establishment of Construction Laboratory and Workshop

8 920 - - - 8 920

Establishment of a Cooperative 500 - - - 500

Establishment/Enhancement of Construction Department in Public TVET Colleges

4 000 - - - 4 000

Internship 64 959 3 600 (1 762) (7 449) 59 348Learnerships 396 852 36 612 53 039 (64 904) 421 599Placement of Learners in workplaces 129 736 - (69 437) (1 194) 59 105Programme Development 129 - - - 129Recognition Of Prior Learning 32 525 (4 508) (718) (313) 26 986Short Skills Programmes 139 453 10 052 21 (14 678) 134 848Skills Development Centre 22 578 30 940 - (8 826) 44 692Trade Testing 12 201 - - - 12 201Training of TVET College staff in assessment and moderation

300 - - - 300

Various Projects 1 690 - - - 1 690Total 1 297 629 94 428 83 254 (194 305) 1 281 006

135



R ‘000

2014

R ‘000

19. Commitments (continued)

Commitments with duly signed offer letters as at 31 March 2015

1 297 629 94 428 83 255 (194 305) 1 281 007

Bursaries - - 3 000 - 3 000

Learnerships - - 5 800 - 5 800

Short Skills Programmes - - 1 503 - 1 503

Commitments not accepted as at 31 March 2015 - - 10 303 - 10 303

Total commitments 1 297 629 94 428 93 558 (194 305) 1 291 3 10

Operating leases

Total of future minimum lease payments under non-cancellable leases.

Minimum lease payments due

- within one year 1 842 1 748 - in second to fth year inclusive - 1 888

1 842 3 636

The operating lease commitments have been straight lined over the period of the leases to take into account any escalation clauses contained therein. The operating lease relates to business premises used for of ce accommodation.

136



R ‘000

2014

R ‘000

20. Related parties

Transactions with entities under common control

By virtue of the fact that Ceta is National Public Entity related to the entities and departments in the National sphere of government, it is considered related to Telkom, Eskom, South African Airways, other SETAs and the National Skills Fund. The transations are consistent with normal operating relationships between the entities, and are undertaken on terms and conditions that are normal for such transactions. Where there were transactions and balances arising due to the movement of funds between entites under common control of the department, these amounts were disclosed below.

2015 2014

Amount of the transaction

Amount receivable/ (payable)

Amount of the transaction

Amount receivable/ (payable)

R ‘000 R ‘000 R ‘000 R ‘000

MERSETA - - 179 -

W&RSETA 65 - - -

Total 65 - 179 -

Note relating to SETA transfers that the amount of the transaction, where applicable, includes interest and penalties transferred to or from the SETA.

Remuneration of Key Management

The key management personnel (as de ned by Related Party Disclosures) of the CETA are: the members of the accounting authority and the members of senior management.

The accounting authority consists of members appointed in terms of its constitution. The chief executive of cer attends meetings of the accounting authority but is not a member of the accounting authority.

Staff members remunerations disclosure Paid/Payable to Senior Staff

Name Job Title and Duration SalaryTravel

Allowance

Pension

Contribution

Leave

PayBonus Total

S. Pilusa Chief Executive Of cer 1 907 78 92 - 641 2 718

T. Sibaya Chief Financial Of cer (Resigned 07 August 2014) 308 26 35 - - 369

T Madibeng Core Business Executive (Appointed 01 September 2014) 714 46 45 - 138 943

2 929 150 172 - 779 4 030

137


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138



R ‘000

2014

R ‘000

21. Irregular, fruitless and wasteful expenditure

Opening balance 3 116 426

Add: Irregular Expenditure - current year 637 2 147

Add: Fruitless and Wasteful Expenditure - 543

Less: Amounts condoned (3 753) -

- 3 116

The irregular expenditure consists of payments of admin contracts for printers, security services, internet services, of ce rental, storage services and cleaning services that have expired.

Fruitless expenditure consists of payments for maintenance of a non-functional printer and ights which were not used.

22. Financial instruments

In the course of CETA operations it is exposed to interest rate, credit, liquidity and market risk. CETA has developed a comprehensive risk strategy in terms of TR 28.1 in order to monitor and control these risks. The risk management process relating to each of these risks is discussed under the headings below.

Interest rate risk

CETA manages its interest rate risk by effectively investing CETA surplus cash in term deposits with different nancial institutions according to CETA’s investment policy.

CETA’s exposure to (cash ow) interest rate risk and the effective interest rates on nancial instruments at reporting sheet date are as follows:

Floating rate Non-interest bearing

2015

AssetsAmount

Effective interest rate

Amount

Weighted average

period until maturity in

years

Total

Cash 1 381 557 5.00% - 1 381 557

Accounts receivable from non exchange transactions

- 8 090 8 090

Accounts receivable - other - 32 766 32 766

Total nancial assets 1 381 557 40 576 1 422 133

Liabilities

Trade and other payables - 104 681 104 681

Total nancial instruments 1 381 557 145 537 1 527 094

139



R ‘000

2014

R ‘000

22. Financial instruments (con nued)

Floating rate Non-interest bearing

Year ended 31 March 2014

Assets Amount Effective interest rate

Amount

Weighted average period

until maturity in years

Total

Cash 1 108 267 5.00% - 1 108 267Accounts receivable from non exchange transactions - 15 824 15 824Accounts receivable other - 695 695

Total nancial assets 1 108 267 16 519 1 124 787

Liabilities

Trade and other payables - 78 029 78 029

- 78 029 78 029

Financial instruments have not been discounted as they will all be settled or recovered within 3 months. Effect of discounting was considered and found not to be material.

Credit risk

Financial assets, which potentially subject CETA to the risk of non performance by counter parties and thereby subject to credit concentrations of credit risk, consist mainly of cash and cash equivalents, investments and accounts receivable.

CETA limits its treasury counter-party exposure by only dealing with well-established nancial institutions approved by National Treasury through the approval of their investment policy in terms of Treasury Regulation TR 28. CETA’s exposure is continuous.

Credit risk with respect to levy paying employers is limited due to the nature of the income received. CETA does not have any material exposure to any individual or counter-party. CETA’s concentration of credit risk is limited to the industry (Financial).

CETA manage limits its treasury counter-party exposure by only dealing with well-established nancial institutions approved by National Treasury through the approval of their investment policy in terms of Treasury Regulation.

Credit risk with respect to levy paying employers is limited due to the nature of the income received. CETA does not have any material exposure to any individual or counter-party. CETA’s concentration of credit risk is limited to the industry (Construction related industries) in which CETA operates. No events occurred in the industry (Construction and related industries) during the nancial year that may have an impact on the accounts receivable that has not been adequately provided for. Accounts receivable are presented net of allowance for doubtful debts.

140



R ‘000

2014

R ‘000

22. Financial instruments (continued)

Liquidity risk

CETA manages liquidity risk through proper management of working capital, capital expenditure (and actual versus forecasted cash ows and its cash management policy). Adequate reserves and liquid resources are maintained.

2015 Carrying

Amount

Contractual

Cash Flows

6 months or less

Trade and other Payables from exchange transactions 38 468 38 468 38 468

2014 Carrying

Amount

Contractual

Cash Flows 6 months or lessTrade and other Payables from exchange transactions 33 547 33 547 33 547

In case of liquidity problems, funding resources might be available in terms of DoL and National Treasury approval for borrowing requirements in the open market.

Market risk

CETA is exposed to uctuations in the employment market, for example, sudden increases in unemployment and changes in the wage rates. No signi cant events occurred during the year that CETA is aware of.

Fair Values

CETA’s nancial instruments consist mainly of cash and cash equivalents, accounts and other receivables and account and other payables. No nancial instruments were carried at an amount in excess of its fair value. Fair values could be reliably measured for all nancial instruments.

The following methods and assumptions are used to determine the fair value of each class of nancial instruments:

Cash and cash equivalents

Cash and cash equivalents comprise cash held by CETA and short-term bank deposits with an original maturity of three months or less. The carrying amount of these assets approximates their fair values.

Accounts receivable

The carrying amount of accounts receivable is net of allowance for any doubtful debt, estimated by the Accounting Authority based on prior experience. The carrying amount of these assets approximates their fair value The effect of discounting is considered and found to be immaterial.

Investments

The fair value of publicly traded investments is based on quoted market prices for those investments.

Accounts payable

The carrying amount of account and other payables approximate their fair value due to the relatively short-term maturity of these nancial liabilities.

141



R ‘000

2014

R ‘000

22. Financial instruments (continued)

Borrowings

The fair value of interest-bearing borrowings is based on the quoted market price for the same or similar issues or on the currentrates available for debt with the same maturity pro le and effective interest rate with similar cash ows (only if applicable)The effect of discounting was considered and found to be immaterial.

23. New accounting pronouncements

At the date of authorisation of these nancial statements, there are Standards and Interpretations in issue but not yet effective. These include the following Standards and Interpretations that are applicable to the SETA and may have an impact on future nancial statements.

Effective date, commencing on or after:GRAP 18 Segment Reporting Not yet EffectiveGRAP 20 Related party Not yet EffectiveGRAP 25 Employee Bene ts Not yet EffectiveGRAP 105 Transfer of Function between Entities Under

Common Control

Not yet Effective

GRAP 106 Transfer of Function between Entities Not Under

Common Control

Not yet Effective

GRAP 107 Mergers Not yet Effective

Not yet Effective

GRAP 18

GRAP 18 : Segment Reporting. The objective of this Standard is to establish principles for reporting nancial information by segments.

GRAP 20

GRAP 20 : Related Party. The objective of this Standard is to ensure that a reporting entity’s nancial statements contain the disclosures necessary to draw attention to the possibility that its nancial position and surplus or de cit may have been affected by the existence of related parties and by transactions and outstanding balances with such parties.

142



R ‘000

24. Contingent assets

Contingent assets consist are as a result of forensic audit performed on prior years’ discretionary projects, which resulted in the Service provider owing CETA

Pending litigations

Nature of Case 2015 Possible Financial Implications

R’000

PA Letsoalo Construction Enterprise 442Desto (Pty) Ltd 2 101Moseme Road Construction 1 446African Haze 8 cc t/a Tshamano Construction 466Zingwazi Contractors 273Lot Noko Moloko cc 198Mamelane Enterprise 910Senthabale Construction cc 530Tshedza Consulting Engineers and Enterprise 2 101Luleka Business Academy cc 605Thabang Property developers (pty) ltd 1 040Vharanani Properties 767Matodzi and Thobo Construction and Project cc 698Mvudi Park 16 Trading cc 688Masakhane Projects Managers & Quantity surveyors cc 312Selematsela Empowerment Projects 1 446Ndlwana Business enterprise 109Zenzulwazi Plumbing & construction 312Kwambanjwa carpentry & construction services cc 171Lekamva Academy 11 381

25 996

25. Contingent liabilitiesPending li ga ons: Discre onary grantsNature of Case Possible Financial Implica ons

R’000Buna Construction & Projects 416Semo Consulting Engineers CC 3 968Lekamva Academy 1 434Unathi Mnqangeni 777Abakholwe Community Developers Pty Ltd & Globul Roads Pty Ltd 1 040Epitome Consulting cc 249Capricorn Group Pty Ltd 15 231CBR Renovators 813Total Contingent Liabilities 23 928

143



R ‘000

2014

R ‘000

25. Contingent liabilities (continued)

Contingent liabilities consist of Service providers instituted legal claims against CETA as a result of forensic audit performed on prior years’ discretionary projects. It is estimated that as a result, additional legal fees of R10 520 000.00 will be incurred to nalise these matters.Pending litigations: Staff related`

Nature of Case Possible Financial Implications R’000

Belinda Nel -

Aubrey Tshidiso Mokodi 75

Khensani Sihlangu -

Total Contingent Liabilities 75

Contingent liabilities are staff personnel related whose services were terminated. It is estimated that as a result, additional legal fees of R450 000.00 will be incurred to nalise these matters.

Pending li ga ons: Admin Services

Clive Fynn I.T Management & Transactional Advisors (pty) LTD 548

Remote Net (pty) Ltd 2 581

WB Kellner Trust 78

Splendid Marketing and Communications cc 3 965

Total Contingent Liabilities 7 172

26. Going concern

The nancial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to nance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

SETA’s were established for a ve period until 31 March 2010. During the 2010/11 year, CETA’s certi cate was extended by 5 years ending 31 March 2016.The Minister of Higher Education and Training, has not pronounced as yet on the licencing of the CETA. The CETA therefore is not certain if it will continue to exist post 31 March 2016 and if it does whether it will be constituted differently or in the manner in which it is currently constituted.

27. Events after the reporting date

Management is not aware of any matters or circumstances that arose from the end of the date of this report which would require adjustments to or disclosure in the nancial statements.

144



R ‘000

2014

R ‘000

28. NOTES TO COMPARISON OF BUDGET AND ACTUAL

Basis of Preparation:

The budget was prepared on an accrual basis and presented hereto on a comparable basis since actual expenditure in the budget is comparable to the income statement.

Analysis of variances:

Revenue

Revenues from Skills Development Levies were slightly lower than budgeted due to a decrease in the number of companies that contributing towards Skills development Levies.

Employer Grant Expenses

The Employer grant expense is within budget.

Project Expenses

Due to delayed discretionary grants allocation as a result of administration, stricter contracting process and change in payment model - i.e. change from upfront payment to a reimbursive model - most projects that have started are yet to claim for the training. It is anticipated that most entities will start submitting claims from the 2nd quarter of the year hence the variance between budget and actual project expenditure.

Administration Expenses

CETA aligned approval of expenditure to the budget which results in savings. Moreover, cost cutting measures have been put in place hence the variance from the budget.

29. Revenue

Trade Test Income 7 13

Interest received - investment 61 419 45 562

Levies 551 057 487 967

Fines, Penalties and Forfeits 27 774 12 257

640 257 545 799

The amount included in revenue arising from exchanges of goods or services are as follows:

Trade Test Income 7 13

Interest received - investment 61 419 45 562

61 426 45 575

145



R ‘000

2014

R ‘000

29. Revenue (continued)

The amount included in revenue arising from non-exchange transac ons is as follows:

Transfer revenue

Skills Development Levies 551 057 487 967

SARS Interest and Penalties 27 774 12 257

578 831 500 224

30. Employee related costs

Basic 19 178 16 641

Bonus 3 538 -

Medical aid - company contributions 1 435 1 011

UIF 268 223

Leave pay provision charge 237 (131)

Temporary staff 3 -

De ned contribution plans 4 082 3 394

PAYE & other salary related costs 6 838 4 460

35 579 25 598

31. Auditors’ remuneration

Fees 2 766 3 042

2 766 3 042

32. Grants and subsidies paid

Other subsidies

Mandatory Grants 91 262 74 635

Discretionary Grants 263 038 222 997

354 300 297 632

146


CETA OFFICES

OFFICE PHYSICAL ADDRESS TELEPHONE NUMBER

Head Of ce Midrand Business Park

563 Old Pretoria Main road

Unit 5

Midrand

1685

011 265 5900

Gauteng Tshwane South TVET College

150 Industrial Street

Pretoria West

0001

012 380 5066

Polokwane Capricorn TVET College

Corner Dorp and College Street

Admin Block

Polokwane Campus

0699

015 297 1923

Mpumalanga Services SETA Of ces

37 Brown Street

4th Floor MidCity Building

Nelspruit

1200

013 752 2207

Eastern Cape East Cape Midlands TVET College

Brick elds Campus

Brick elds Road

Uitenhage

6230

041 996 1800

Freestate Motheo TVET College

Corner Alwal and St George Street

Motheo Central Of ce

Bloemfontein

9300

051 406 9437

Kwa-Zulu Natal 127 Johannes Nkosi Street

Durban

SEDA Construction Incubator

4001

031 309 2514/5042

147


OFFICE PHYSICAL ADDRESS TELEPHONE NUMBER

North West Taletso TVET College

Luthuli Drive, Kgora Building

Mmabatho

2735

018 384 6213/6

Western Cape College of Cape Town TVET College

Krombom Road

Crawford Campus

7760

021 510 6831

Northern Cape Department of Public Works

45 Schmidtsdrift Road

Kimberley

Northern Cape

8300

053 861 3650

148


Notes

Documents

werner NEW CETA REPORT 2015 - National Government · 2016-03-02 · LPQD Learning Pathways and Quality Development ... SDF Skills Development Facilitator SDLA Skills Development Levy