Annual Performance Plan 2015/16

Transcription

1 Annual Performance Plan 2015/16

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3 Official sign-off It is hereby certified that this Annual Performance Plan: was developed by the management of the Services SETA in consultation with the Department of Higher Education and Training was informed by the revised Services SETA Strategic Plan for the period 2011/ /16 accurately reflects the performance targets which the Services SETA will endeavour to achieve within available funding for the 2015/16 financial year Tsiliso Tamasane Manager: Sector Skills and Strategic Planning Signature: Date: Andile Nongogo Chief Financial Officer Signature: Date: Liesel Kӧstlich Acting Chief Executive Officer Signature: Date: Themba Mhambi Chairperson Signature: Date: For more information, please contact: Services SETA PO Box 3344 Houghton 2041 South Africa Tel: Fax: ISBN: Services SETA annual performance plan 2015/16 i

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5 Foreword This Annual Performance Plan draws from a comprehensively reviewed Strategic Plan 2015/16 Update. The critical aspect of the Strategic Plan s review has been the use of the Performance Information Framework (PI Framework) provided for in the National Treasury Framework for Strategic Plans and Annual Performance Plans throughout all components of the Plan. In addition the review sought to address the AG- SA s audit findings sufficiently the Audit of Predetermine Objectives showed improvement in usefulness and reliability and an improvement in financial performance from qualified to unqualified. The use of the Performance Information Framework in the Strategic Plan has resulted in a number of improvements within the Services SETAs both in planning and operational terms. Firstly, it has brought the Services SETAs planning approach in line with the National Treasury guidelines. Secondly, it has improved the alignment between the Services SETAs Strategic Goals and the Government s key strategic priorities that included but not limited to the Medium Term Strategic Framework; the Government Outcomes; National Skills Development Strategy III and National Development Plan. From the operations point of view, the Performance Dimension exercise of the PI Framework was used to cluster the current (APP 2014/15) Key Performance Indicators into desired performance categories, for example, input, activity, output, outcome or impact. A decision was made to set the predetermined strategic objectives at the outcome or impact level. This process resulted in a significant reduction of the current number of KPIs from 144 to 60 for APP 2014/15 and APP 2015/16, respectively. The reduced number of KPIs will firstly help to focus the Services SETA attention to impact performance as opposed to activity/output performance as is currently the case. The process will further result in a manageable number of indicators for the management team and the Accounting Authority that will enable them to steer the organisation towards realising the desired impact. The process of revising this APP 2015/16 has been oriented towards capacity development in approach. A series of workshops were held with the Board and Management to provide a theoretical understanding of the planning approach of the Government. We also went through the planning steps as outlined in the Framework for Strategic Plans and Annual Performance Plans and broad guide as provided for in the Framework for Managing Programme Performance Information. This APP (2015/16), as identified in the strategic goals, strives to guide the Services SETA to: build a skilled and capable workforce; improve the relevant skills pipeline into the sector; enhance sector capabilities to identify needs, plan and implement timely responses, and strengthen Services SETA capability to lead the sector and its compliance with governance imperatives. These Goals contribute directly to Government Strategic Outcome: a skilled and capable workforce to support inclusive growth, and Outcome 12 an efficient, effective and development oriented public service, and an empowered, fair and inclusive citizenship. LIESEL KӦSTLICH ACTING CHIEF EXECUTIVE OFFICER Services SETA annual performance plan 2015/16 ii

6 TABLE OF CONTENTS TABLE OF CONTENTS... III LIST ACRONYMS... IV PART A: STRATEGIC OVERVIEW UPDATED SITUATIONAL ANALYSIS PERFORMANCE DELIVERY ENVIRONMENT ORGANISATIONAL ENVIRONMENT REVISIONS TO LEGISLATIVE AND OTHER MANDATES OVERVIEW OF THE BUDGET AND MTEF ESTIMATES LEGISLATIVE MANDATE / /18 MTEF BUDGET OVERVIEW REVENUE Levies Investment Income ADMINISTRATION EXPENDITURE Mandatory Grants Discretionary Grants Capital Expenditure Capital Expenditure Conclusion INCOME AND EXPENDITURE ESTIMATES... 8 PART B: PROGRAMME AND SUB-PROGRAMME PLANS PROGRAMME 1: ADMINISTRATION S PROGRAMME AND ANNUAL TARGETS FOR 2015/ QUARTERLY TARGETS FOR 2015/ RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF PROGRAMME 2: GOVERNANCE S PROGRAMME AND ANNUAL TARGETS FOR 2015/ GOVERNANCE QUARTERLY TARGETS FOR 2015/ RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF PROGRAMME 3: PLANNING S PLANNING PROGRAMME AND ANNUAL TARGETS FOR 2015/ / PLANNING QUARTERLY TARGETS FOR 2015/ RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF PROGRAMME 4: SKILLS DEVELOPMENT S PROGRAMME AND ANNUAL TARGETS FOR 2015/ / QUARTERLY TARGETS FOR 2015/ / Services SETA annual performance plan 2015/16 iii

7 7.4 RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF ANNEXURE A: SERVICE LEVEL AGREEMENT ON POSSIBLE TARGETS BY LEARNING INTERVENTION ANNEXURE B: MATERIALITY AND SIGNIFICANCE FRAMEWORK ANNEXURE C: DISCRETIONARY GRANT CAPPED EXPENDITURE Services SETA annual performance plan 2015/16 iv

8 LIST ACRONYMS AET AFS APP APR ATR CEO CPD DHET DG ETQA FET HET HIV HR HRD HRDC HRDS IPAP LPE MTEF MTSF NCV NEET NLPE NQF NSA NSDS QCTO RPL SDA SDLA SETA SIC SIPS SLA SME SMME SP SPM SSP TVET WSP WIL Adult Education and Training Annual Financial Statements Annual Performance Plan Annual Performance Report Annual Training Report Chief Executive Officer Continuing Professional Development Department of Higher Education and Training Discretionary Grants Education and Training Quality Assurance Further Education and Training Higher Education and Training Human immunodeficiency virus Human Resources Human Resource Development Human Resource Development Council Human Resource Development Strategy Industrial Policy Action Plan Levy Paying Employer Medium Term Expenditure Framework Medium Term Strategic Framework National Certificate (Vocational) Not in Education Employment or Training Non Levy Paying Employer National Qualifications Framework National Skills Authority National Skills Development Strategy Quality Council for Trade and Occupations Recognition of Prior Learning Skills Development Act Skills Development Levies Act Sector Education and Training Authority Standard Industrial Classification Strategic Integrated Projects Service Level Agreement Small Micro Enterprises Small, Medium and Micro Enterprises Strategic Plan SETA Performance Management of the DHET Sector Skills Plan Technical Vocational Education and Training (Formerly FET Colleges) Workplace Skills Plan Work Integrated Learning Services SETA annual performance plan 2014/15 iv

9 Part A: STRATEGIC OVERVIEW 1 UPDATED SITUATIONAL ANALYSIS 1.1 Performance delivery environment According to the SSP, some 155,000 employers are classified under the Services Sector of which 90% are small (employing less than 50 employees). A total of 28% are levy paying employers. The 70 standard industrial classification codes falling within the scope of the Services Sector, as per Ministerial demarcation, are clustered into 16 sub-sectors and further into 6 chambers. From the table below, a majority of employers fall under the Management and Business Services chamber. Proportion of employers by chamber Total LPE NLPE Cleaning and Hiring Services 2% 2% 2% Communications and Management Services 2% 2% 2% Labour and Collective Services 2% 3% 2% Management and Business Services 81% 10% 71% Personal Care Services 5% 5% 5% Real Estate and Related Services 7% 6% 8% The Services Sector further differs from other sectors in that employers have significantly diverse core business services. Most employers are however classified under the tertiary economic sector often supplying primary and secondary economic sectors with services. Data show sustained growth in the number of tertiary economic sector employers. Sector employers are concentrated in three provinces as follows: 56% in Gauteng, 14% in Western Cape and 9% in KwaZulu-Natal. The balance of 21% is spread across the other six provinces. The performance delivery environment has significant implications for planning. The number of role-players that the Services SETA is required to engage with is substantially in comparison to other sectors. The high percentage of small companies, unlikely to have dedicated skills development specialists and capacity for workplace skills planning, creates a reliance on the Services SETA for support in accessing mandatory and discretionary grants. The SSP research identified and prioritised 78 scarce skills for which degrees/diplomas and skills programmes are most applicable and 85 critical skills for which skills programmes are most applicable. The top 10 scarce skills are at different stages of the skills development cycle. Qualifications are available for 9 out of the 10 scarce skills. However, 3 of these are being revised in accordance with new QCTO requirements. One scarce skill has no registered qualification for which development is pending. This plan provides for learner enrolment targets across all learning interventions. The prioritisation and representivity of service delivery should consider the performance delivery environment. The criteria for awarding Services SETA funded discretionary grants to employers should consider alignment to identified scarce skills. Services SETA annual performance plan 2015/16 1

10 1.2 Organisational environment The period of administration effectively ended on 30 June The induction of the newly appointed Accounting Authority and the appointment of the Chief Executive Officer took place in July Accounting Authority Committees were established soon thereafter, which was further strengthening governance, leadership and accountability. The Accounting Authority accepted the organisational structure approved in June 2013 noting that several posts were unfunded. The Accounting Authority resolved that only critical funded posts should be filled. In summary, as at 30 September 2013: The approved unfunded organogram, as at June 2013, comprised of 318 permanent positions of which 100 were vacant The funded organogram comprised 256 permanent of which 38 were vacant 23 temporary positions were contracted The organograms are represented in the Strategic Plan by programme enabling consideration of capacity against predetermined objectives, performance indicators and targets. A project is underway to improve and streamline business processes in order to enhance efficiency and effectiveness. 2 REVISIONS TO LEGISLATIVE AND OTHER MANDATES The Sector Skills Plan and Strategic Plan discuss the policy and regulatory frameworks that govern the mandate of the Services SETA and their implications for planning. The Sector Skills Plan further identifies subsector legislative changes that affect the business of employers falling within the scope of the Services Sector. The purpose of this section is not to replicate details provided in the SSP and SP, but only to indicate changes to the policy and regulatory framework that hold implications for the coming year (and hence the APP). The SP divides the regulatory and policy frameworks into 3 sets: Legislation, regulations and policies constituting the national development framework. Here, the National Development Plan and associated strategies define the impact level of measurement for skills development. Recent changes here include: The 12 national outcomes which are the basis of the national monitoring and evaluation system have been extended to 14 outcomes, to align the outcomes with the NDP. The two new outcomes are also relevant to Services SETA, and must be reflected at an operational level in implementing this APP. The National Youth Accord was signed in This makes a specific commitment to youth development, and is reflected in the youth development priorities and targets in the APP. The Medium-Term Strategic Framework has been updated from the MTSF , to the new MTSF The goals and purposes of the new MTSF have been included in the SP and are reflected also in the APP. There has been substantial progress in planning the Strategic Integrated Projects key to the New Growth Path. Services SETA has been centrally involved in the planning; and this APP reflects a major investment of Services SETA resources in skills development for the sector. Services SETA annual performance plan 2015/16 2

11 Second, skills development legislation and policy shapes the role and functions of Services SETA, as well as associated practices at workplace and provider level. The National Skills Development Strategy III will end its cycle in 2016, and work is already underway to develop NSDS IV. While not yet formalised as policy, elements of the review process are already being implemented and have influenced this APP: NSDS III proposed a credible institutional mechanism for skills planning. The Labour Market Intelligence Program has effectively centralised many aspects of skills planning. This APP reflects skills planning interventions that collaborate with national skills planning. The review of the SETA system under the national HRD Council has also proposed a regionalisation of skills planning and a localisation of skills development. This APP reflects interventions to develop provincial and sub-sector skills plans therefore. Many of the skills development interventions are implemented in a way that promotes localisation. The review processes also point to an increased collaboration across SETAs; between SETAs and public providers; and between providers and employers. All these trends are accordingly reflected in the interventions and targets proposed in this APP. A centralisation of the quality assurance system under the QCTO has been underway for some time. The Services SETA QMD division has been restructured to reflect the delegation of functions by the QCTO. The SETA Grant Regulations regarding monies received by a SETA and related matters, published on 3 December 2012 effective 1 April 2013, impacted significantly on financial and performance planning. The financial implications are set out in section 3. The reduction in mandatory grant reimbursements is countered with an increase in discretionary grant funding whereby employers can submit applications for SETA funded PIVOTAL programmes that address scarce and critical skills. Plans to increase the number of employers that claim mandatory grants and discretionary grant application processes required new approaches and enhanced communication and support to role-players. The benefits of these changes are anticipated to be realised to a greater extent in the 2014/15 financial year. Other laws and regulations affecting the state more widely (including SETAs), such as the PFMA, PAIA and PAJA. These fall outside the scope of consideration for an APP. The Services SETA Sector Skills Plan, Strategic Plan, Annual Performance Plan and Service Level Agreement seek to operationalise the priorities contained in all national policy, legislation and regulations and as determined by the Executive Authority. Services SETA annual performance plan 2015/16 3

12 3 OVERVIEW OF THE BUDGET AND MTEF ESTIMATES 3.1 Legislative Mandate The Service Sector Education and Training Authority (Services SETA) is a statutory body established in terms of the Skills Development Act of 1998 (as amended) with the aim of enabling its stakeholders to advance skills levels in the sector in accordance with government's growth initiatives. The Services SETA initiates skills development projects and learning interventions aimed at the improvement and development of South African human resources. The Services SETA has an obligation in respect of its stakeholders to ensure that skills in the Services Sector are developed. The ENE Budget which forms an integral part of the Annual Performance Plan, is approved by the Accounting Authority and then submitted to Executive Authority which is the Minister of Higher Education and Training / /18 MTEF budget overview There were no significant regulatory changes over the MTEF period: Previously, levy income was split as follows: Discretionary 20% Mandatory 50% Admin 10% Balance of 20% transferred to the National Skills Fund Amended regulations: Discretionary 49.5% Mandatory 20% Admin 10.5% Balance of 20% transferred to the National Skills Fund 3.3 Revenue Levies The forecast for 2014/15 was prepared taking into account the average year to August 2014 levy income and extrapolating for the remainder of the financial year. It is projected that levy income will total R1.259 billion which represents a R114 million increase from the original budget. This is mainly attributable to the higher than budgeted for salary increases of employer companies that belong to the Services SETA s sector. The budget for 2015/16 is expected to increase by 8% due to the rebranding of the Services SETA and will amount to R1.365 billion. Services SETA annual performance plan 2015/16 4

13 3.3.2 Investment Income Interest income is estimated to increase by 127% from budget of R58 million which results in a projected interest income of R131 million. The cash and cash equivalents balance has increased by 18% to R2.790 billion. The increase in cash and cash equivalents is mainly attributable to the delays in contracting and project roll-out which will be finalised by Jan Interest income is estimated to decrease by 24% from revised budget of R130 million which results in a projected interest income of R98 million. The cash and cash equivalents balance will decrease as contracts are conclude and will start disbursing discretionary grants. It is anticipated that investment income will start narrowing off from in the middle of the financial year as it is anticipated that payments from the 2015/16 allocation will start in July Refer to the detail in the ENE database file for further information. 3.4 Administration Expenditure The New Skills Development Regulations limit the administration costs of SETA to 10.5% of Levies actually received. The administration costs of the SETA are therefore limited to the projected levy income of R179 million for 2015/16. It is anticipated that there will be an unfavourable variance of 11% for administration expenditure for the 2015/16 financial year compared to the 2014/15 revised budget of R160 million. The unfavourable variance is mainly attributable to the Organisational Redesign project which will overlap into the 2015/16 financial year. The costs will cover the following, inter alia: Appointment of service provider to provide an IT support Development and implementation of a Learner Portal and Management Information systems Upgrade of the financial system Development and implementation of an integrated marketing strategy. Refer to the detail in the ENE database file and APP for further information Mandatory Grants It is anticipated that mandatory grant expenditure will increase by 15% compared to the projection for 2014/15. This is attributable to the activities that will be identified by the Marketing and Communications strategy which is currently being developed. These include amongst others rebranding of Services SETA. Refer to the detail in the ENE database file and APP for further information Discretionary Grants The Services SETA has subjected all the commitments from the previous year amounting to R274 million to a forensic audit investigation, this will assist in identifying slow moving and dormant projects that need to be discontinued. Based on this exercise the Services SETA has allocated an amount of R300 million to remedial projects. The Services SETA has not funded discretionary grants for the past two financial years. During the 2014/15 financial year, the Services SETA has allocated R511 million for 13,492 learners and 10,120 learners for phase 1 and 2 respectively, 25% of the allocation in phase 1 has already been contract, whereas 75% is still Services SETA annual performance plan 2015/16 5

14 in progress due to delay in entities submitting learners information, it is expected that the contracting process will be completed in December Letters of intent has been issued to the entities with regard to allocations made in phase two and it is expected to be completed by Feb The DG funding window for 2014/15 is open and will close in 09 December This is targeted at 11,634 learners in different interventions to the amount of R300 million. This process will be fully completed in March In addition to this the Services SETA will be calling for applications in different intervention targeting 23,200 learners to the value of R600 million. The Services SETA has introduced a performance based system to pay training providers. In addition to the above an amount of R169 million has been earmarked for the DHET priority projects. An amount R692 million has been earmarked for priority projects identified by the Services Accounting Authority, the allocation and contracting process will be completed in March The difference between the original budget and the capped budget of R227 million has been incorporated in the 2015/16 commitments. The total revised budget for discretionary grants is R419 million comprising of direct costs R333 million (stipends) and R85 million for project administration costs. Description 2013/ / /16 R'000 R'000 R'000 Accumulated surpluses 1,753, Projected Levies - Discreationary Grants - 787, , Unclaimed Mandatory Grants - 107, , Investment Income - 130,559 94, Discretionary funds available 1,753,766 1,025,371 1,044,255 Legacy commitments (274,428) Discretionary Grants (511,000) (355,303) (604,700.00) Remedial projects - projected (300,000) Earmarked for Ministerial projects (169,000) Priority projects approved by SSETA (19,500) (503,500) DHET Priority projects - (227,014) - linked to learners (123,772) Unconditional grants - (103,242) - DG Admin (192,363) (86,368) (45,352.50) Rollover (315,814) 315,814 - Available 140, ,202 Further detail relating to discretionary grants is provided in the APP and ENE Capital Expenditure Capital Expenditure The capital expenditure for the 2014/15 financial year is projected to be R82 million and to decrease to R37 million in 2015/16 as the Services SETA completes the Organisational Redesign process and improve operational efficiencies to be a world class SETA. Services SETA annual performance plan 2015/16 6

15 3.4.4 Conclusion We look forward for the approval of the budget which will enable us to fulfil our mandate of skilling and upskilling the services sector. Services SETA annual performance plan 2015/16 7

16 3.5 Income and Expenditure estimates Table 1 Services SETA Income and Expenditure Income by economic classification Income outcome Budget (previous) Adjusted Appropriation Medium-term income estimate R thousand 2012/ / / / / / /18 Levies Received R R R R R R R Levies Received: Administration 10.5% R R R R R R R Levies Received: Employer Grants 20% R R R R R R R Levies Received: Discretionary Grants 49.5% R R R R R R R Other Income R R R R R R R Penalties and Interest on Levies R R Investment Income R R R R R R R Other Income R 209 R Surplus prior year FY 2013 Surplus prior year FY 2012 TOTAL INCOME R R R R R R R Income by Programmes Income outcome Budget (previous) Adjusted Appropriation Medium-term income estimate R thousand 2012/ / / / / / /18 1. Administration R R R R R R R Governance - R R R R Planning - - R R R Skills Development R R R R R R R TOTAL R R R R R R R Services SETA annual performance plan 2015/16 8

17 All programmes by economic classification Expenditure outcome Budget (previous) Adjusted Appropriation Medium-term expenditure estimate R thousand 2012/ / / / / / /18 Administrative expenses R R R R R R R Compensation of employees R R R R R R R Goods and services of which: R R R R R R R Advertising R R R R R R R Audit Fees R R R R R R R Communication R R R R R R R Computer services R R R R R R R Consultants, contractors and special services R R R R R R R Governance Fees R R R R R R R Maintenance repair and running cost R R R R R R R Depreciation R R R R R R R Travel and subsistence R R R R R R R Staff training, recruitment and assistance R 944 R R R R R R QCTO - R R R R R R Office Accommodation R R R R R Mandatory Grants - Transfers and subsidies to: R R R R R R R Provinces Agencies and accounts Universities and technikons Public corporations and private enterprises R R R R R R R Foreign governments and international organisations Non-profit institutions Households Services SETA annual performance plan 2015/16 9

18 Discretionary Grants - Transfers and subsidies to: R R R R R R R Provinces Agencies and accounts Universities and technikons Public corporations and private enterprises R R R R R R R Foreign governments and international organisations Non-profit institutions Households Total expenditure R R R R R R R Net surplus (deficit) R R R R R Note 1 The deficit arises because of disbursements of prior year's commitments. Payments for capital assets: Buildings and other fixed structures - - R R R 110 R 110 R 110 Machinery and equipment R R R 87 R 50 R 50 Computer equipment R R R R 937 R 50 R 100 R 100 Software and other intangible assets - - R R R R R Motor vehicle R R Total Capital expenditure R R R R R R R Note: Services SETA applies the accrual basis of accounting and assets are written off through depreciation which is a budgeted expense Services SETA annual performance plan 2015/16 10

19 Expenditure by Programmes Expenditure outcome Budget (previous) Adjusted Appropriation Medium-term expenditure estimate R thousand 2012/ / / / / / /18 1. Administration R R R R R R R Governance 3. Planning - - R R R R R R R Skills Development R R R R R R R TOTAL R R R R R R R Services SETA annual performance plan 2015/16 11

20 PART B: PROGRAMME AND SUB-PROGRAMME PLANS The Services SETA has 4 programmes each comprising strategic objectives, programme performance indicators and corresponding targets. 4 PROGRAMME 1: ADMINISTRATION Purpose The purpose of the administration program is to enable the delivery of the Services SETA Mandate through the delivery of support services. Description The program is made up of the following sub-programmes: 1.1. Finance 1.2. Human Resources 1.3. Corporate Services 4.1 Strategic Objectives # Strategic Objective Title Strategic Objective Statement Supply Chain Management Financial affairs of the Services SETA are managed in a transparent, efficient and effective manner Financial Management Financial policies and practices continually improved and corrective actions implemented reinforcing compliance to achieve a clean audit Project Accounting All valid and legitimate claims and payments must be timely executed Human Resources and Facilities Management People with the required knowledge, competencies and behaviours are recruited, retained and supported to improve individual productivity and organisational performance And facilities and records managed and administered to build a safe and secure work environment that enables productivity Information Technology ICT services are integrated, efficient and innovative enabling improved organisational efficiency and performance Communications and Marketing Improved stakeholder awareness and recognised as a leading Sector Education and Training Authority Services SETA annual performance plan 2015/16 12

21 4.2 Programme performance indicators and annual targets for 2015/16 Supply Chain Management STATEMENT Financial affairs of the Services SETA are managed in a transparent, efficient and effective manner ESTIMATED MEDIUM TERM TARGETS ACTUAL PERFORMANCE PERFORMANCE 2011/ / / / / / /18 Comply with SCM regulations Percentage of compliance with statutory submissions No baseline No baseline No baseline 90% 100% 100% 100% Percentage implementation of the procurement plan No baseline No baseline No baseline Not targeted 100% 100% 100% Financial Management Financial policies and practices continually improved and corrective actions implemented reinforcing compliance to achieve a STATEMENT clean audit ESTIMATED ACTUAL PERFORMANCE PERFORMANCE MEDIUM TERM TARGETS 2011/ / / / / / /18 Comply with financial performance requirements Positive AG-SA Audit opinion on financial audit outcome Unqualified Qualified Unqualified Unqualified Unqualified Unqualified Unqualified Services SETA annual performance plan 2015/16 13

22 1.1.3 Project Accounting STATEMENT All valid and legitimate claims and payments must be timely executed ESTIMATED ACTUAL PERFORMANCE PERFORMANCE MEDIUM TERM TARGETS 2011/ / / / / / /18 Percentage of compliant mandatory Comply with Services grant reimbursements SETA grants payment paid within 90 days of No baseline No baseline No baseline Not applicable 95% 95% 95% submission Percentage of compliant discretionary grants invoices paid within 30 days of submission No baseline No baseline 100% Not applicable 80% 85% 90% Services SETA annual performance plan 2015/16 14

23 1.2.1 STATEMENT Human Resources and Facilities Management People with the required knowledge, competencies and behaviours are recruited, retained and supported to improve individual productivity and organisational performance And facilities and records managed and administered to build a safe and secure work environment that enables productivity ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Create an environment that enables performance / / / / / / /18 Rate of employee vacancy 15% 15% 30% 15% 8% 8% 8% Rate of employee turnover 14% 11% 14% 8% 8% 8% 8% Percentage of achievement of employees skills development plans Not applicable Not applicable Not applicable Not applicable 100% 100% 100% Percentage of employees with disabilities Not applicable Not applicable Not applicable Not applicable 1% 2% 4% Percentage of improvement in employee satisfaction Not applicable Not applicable Not applicable 15% 30% 45% 50% Percentage of compliance with OHS Act Not applicable 33% 30% 85% 85% 85% 85% Services SETA annual performance plan 2015/16 15

24 1.3.1 STATEMENT Information Technology ICT services are integrated, efficient and innovative enabling improved organisational efficiency and performance Ensure system availability ESTIMATED PERFORMANCE ACTUAL PERFORMANCE MEDIUM TERM TARGETS 2011/ / / / / / /18 Percentage of achievement of business disaster recovery plan Not applicable Not applicable Not applicable Not applicable 100% 100% 100% Percentage of uptime of data lines Not applicable Not applicable Not applicable Not applicable 99.9% 99.9% 99.9% STATEMENT Communications and Marketing Improved stakeholder awareness and recognised as a leading Sector Education and Training Authority ESTIMATED MEDIUM TERM TARGETS PERFORMANCE ACTUAL PERFORMANCE 2011/ / / / / / /18 Increase stakeholder awareness Promote Sector Qualifications Number of stakeholder engagements Not applicable Not applicable Not applicable Not applicable Number of individuals reached with career guidance Not applicable Not applicable Not applicable Not applicable Services SETA annual performance plan 2015/16 16

25 4.3 Quarterly targets for 2015/16 Sub-Programme Finance Supply Chain Management STATEMENT Financial affairs of the Services SETA are managed in a transparent, efficient and effective manner ANNUAL INDICATOR REPORTING QUARTERLY TARGETS TARGET STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 BUDGET R thousand Comply with SCM regulations Percentage of compliance with statutory submissions Changed Quarterly 100% 100% 100% 100% 100% Incorporat Percentage implementation ed under of the procurement plan Changed Quarterly 100% 100% 100% 100% 100% Comply with financial performance requirements Financial Management Financial policies and practices continually improved and corrective actions implemented reinforcing compliance to STATEMENT achieve a clean audit ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Incorporat Positive AG-SA Audit opinion Unqualifie ed under on financial audit outcome Continued Quarterly Unqualified d Services SETA annual performance plan 2015/16 17

26 1.1.3 Project Accounting Comply with Services SETA grants payment Create an environment that enables performance STATEMENT All valid and legitimate claims and payments must be timely executed ANNUAL INDICATOR REPORTING QUARTERLY TARGETS TARGET STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 Percentage of compliant mandatory grant reimbursements paid within 90 days of submission New Quarterly 95% 95% 95% 95% 95% BUDGET R thousand Percentage of compliant discretionary grants invoices paid within 30 days of submission Continued Quarterly 80% 80% 80% 80% 80% R20,293 STATEMENT Human Resources and Facilities Management People with the required knowledge, competencies and behaviours are recruited, retained and supported to improve individual productivity and organisational performance And facilities and records managed and administered to build a safe and secure work environment that enables productivity ANNUAL BUDGET R INDICATOR REPORTING QUARTERLY TARGETS TARGET thousand STATUS PERIOD 2015/16 Q1 Q2 Q3 Q Rate of employee vacancy Continued Quarterly 8% 8% 8% 8% 8% Rate of employee turnover New Quarterly 8% 8% 8% 8% 8% Percentage of achievement of employees skills development plans New Quarterly 100% 100% 100% 100% 100% Percentage of employees with disability New Annually 1% % Services SETA annual performance plan 2015/16 18

27 1.2.1 STATEMENT Human Resources and Facilities Management People with the required knowledge, competencies and behaviours are recruited, retained and supported to improve individual productivity and organisational performance ANNUAL BUDGET R INDICATOR REPORTING QUARTERLY TARGETS TARGET thousand STATUS PERIOD 2015/16 Q1 Q2 Q3 Q Percentage of improvement in employee satisfaction Continued Annually 50% % R18,837 + R67,957= R86,794 Percentage of compliance with OHS Act Continued Quarterly 85% 85% 85% 85% 85% Information Technology STATEMENT ICT services are integrated, efficient and innovative enabling improved organisational efficiency and performance ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Percentage of achievement Ensure system availability of business disaster recovery plan New Quarterly 100% 100% 100% 100% 100% Percentage of uptime of data lines New Quarterly 99.9% 99.9% 99.9% 99.9% 99.9% R19,422 Services SETA annual performance plan 2015/16 19

28 1.3.2 Communications and Marketing STATEMENT Improved stakeholder awareness and recognised as a leading Sector Education and Training Authority ANNUAL INDICATOR REPORTING QUARTERLY TARGETS TARGET STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 Increase stakeholder Number of stakeholder awareness engagements New Quarterly Number of individuals Promote Sector Qualifications reached with career guidance New Quarterly BUDGET R thousand R6378 +R 39 = R6,417 Services SETA annual performance plan 2015/16 20

29 4.4 Reconciling performance targets with the Budget and MTEF 1. Administration Expenditure by Programmes Medium-term expenditure estimate R thousand 2012/ / / / / / /18 Finance R R R R R Human Resources & Facilities Management R R R R R Communication Marketing R R R R R Information Technology R R R R R TOTAL R R R R R R R Services SETA annual performance plan 2015/16 21

30 5 PROGRAMME 2: GOVERNANCE Purpose The purpose of this programme is to enable the Services SETA to deliver its mandate in compliance with all governance imperatives. Description This programme relates to the governing and management of the Services SETA. It sets out the activities designed to analyse and consult stakeholders in the sector. It also sets out the management of the organisation from the CEO s office. It further develops governance arrangements suited to the work of the Services SETA. It also sets out a programme of work for the Board and its structures. Lastly, it set out how the work of the Board will be monitored and reported on. Key activities within this Programme are Special Projects; Board Services; Board Secretariat; Compliance; Internal Audit; and Risk Management. 5.1 Strategic Objectives This programme consists of five strategic objectives. In the main, Governance Programme strategic objectives focus on Strategic Goal 4 Comply with governance imperatives and Strategic Goal 5 Improving Services SETA capabilities to lead the sector. # Strategic Objective Title Strategic Objective Statement Special Project Transformational imperatives and national priorities promoted through partnerships development and strategic integration resulting in the contracting in respect of learners across learning interventions Board Services Governance structures and processes established, capacitated and maintained in accordance with all relevant legislation as per the legal register Legal Services Provide effective legal service to the Board and all departments Organisational Compliance Compliance with statutory and regulatory provisions and, internal policies and procedures monitored and strengthened to mitigate risk and improve organisational performance Risk Management Enterprise-wide risk management strategy developed to strengthen organisational effectiveness Internal Audit Ensure that all audit findings are actioned to ensure organisation s compliance Office of the CEO Organisation wide achievement of the strategy objectives Services SETA annual performance plan 2015/16 22

31 5.2 Programme performance indicators and annual targets for 2015/ STATEMENT Special Projects Transformational imperatives and national priorities promoted through partnerships development and strategic integration resulting in the contracting in respect of learners across learning interventions ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Achieve special project milestones / / / / / / /18 Percentage of special projects milestones completed on target Not applicable Not applicable Not applicable Not applicable 80% 85% 90% Number of partnership with public entities Not applicable Not applicable Not applicable Not applicable Number of rural skills development centres Not applicable Not applicable Not applicable Number of SMEs supported Not applicable Not applicable Number of cooperatives supported Not applicable Not applicable Number of non-profit organisations supported Not applicable Not applicable Percentage of learners aligned to SIPs scarce occupations Not applicable Not applicable 5% 10% 15% 20% 20% Services SETA annual performance plan 2015/16 23

32 2.1.2 STATEMENT Board Services Governance structures and processes established, capacitated and maintained in accordance with all relevant legislation as per the legal register ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/ / / / / / /18 Ensure good governance at the Services SETA Number of functional structures Not applicable Not applicable Not applicable Percentage of Accounting Authority s Resolutions implemented Not applicable Not applicable Not applicable Not applicable 100% 100% 100% STATEMENT Legal Services Provide effective legal service to the Board and all departments ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/ / / / / / /18 Provide effective and efficient Legal Services Percentage of legal costs minimized Not applicable Not applicable Not applicable Not applicable 5% 10% 10% Percentage of contracts completed within 21 days Not applicable Not applicable Not applicable Not applicable 80% 80% 80% Percentage of legal advice requests responded to within 14 days indicating resolution time Not applicable Not applicable Not applicable Not applicable 100% 100% 100% Services SETA annual performance plan 2015/16 24

33 2.1.4 STATEMENT Organisational Compliance Compliance with statutory and regulatory provisions and, internal policies and procedures monitored and strengthened to mitigate risk and improve organisational performance ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Ensure compliance with relevant legislations, policies, rules and regulations / / / / / / /18 Percentage of compliance plans implemented Not applicable Not applicable Not applicable Not applicable 70% 80% 90% Percentage of compliance with applicable laws and regulations Not applicable Not applicable Not applicable Not applicable 100% 100% 100% STATEMENT Risk Management Enterprise-wide risk management strategy developed to strengthen organisational effectiveness ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Minimise the impact of risk / / / / / / /18 Percentage of mitigation plans implemented Not applicable Not applicable Not applicable Not applicable 70% 80% 80% Services SETA annual performance plan 2015/16 25

34 2.1.6 STATEMENT Internal Audit Ensure that all audit findings are actioned to ensure organisation s compliance ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Resolve audit findings within agreed times / / / / / / /18 Percentage audit findings resolved within due date Not applicable Not applicable Not applicable Not applicable Not applicable 100% 100% STATEMENT Office of the CEO Organisation wide achievement of the strategy objectives ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Achieve Services SETA predetermined strategy objectives / / / / / / /18 Percentage of predetermined strategic objectives achieved Not applicable Not applicable Not applicable Not applicable 80% 100% 100% Services SETA annual performance plan 2015/16 26

35 5.3 Governance Quarterly targets for 2015/ Achieve special project milestones Special Projects Transformational imperatives and national priorities promoted through partnerships development and strategic STATEMENT integration resulting in the contracting in respect of learners across learning interventions ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Percentage of special projects milestones completed on target New Quarterly 80% 60% 70% 80% 80% Number of partnership developed with public entities Continued Quarterly Number of rural skills development centres Continued Quarterly Number of SMEs supported Continued Annually Number of cooperatives supported Continued Quarterly Number of non-profit organisations supported Continued Quarterly Percentage of learners aligned to SIPs scarce occupations Continued Quarterly 15% 15% 15% 15% 15% R89,300 Services SETA annual performance plan 2015/16 27

36 2.1.2 Ensure good governance at the Services SETA STATEMENT Board Services Governance structures and processes established, capacitated and maintained in accordance with all relevant legislation as per the legal register ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Number of functional structures Changed Quarterly Percentage of Accounting Authority s Resolutions implemented New Quarterly 100% 100% 100% 100% 100% R4, Legal Services STATEMENT Provide effective legal service to the Board and all departments ANNUAL INDICATOR REPORTING QUARTERLY TARGETS TARGET STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 BUDGET R thousand Provide effective and efficient legal service Percentage of legal costs minimized New Quarterly 5% 5% 5% 5% 5% Percentage of contracts completed within 21 days New Quarterly 80% 80% 80% 80% 80% Percentage of legal advice requests responded to within 14 days indicating resolution time New Quarterly 80% 80% 80% 80% 80% R9,004 Services SETA annual performance plan 2015/16 28

37 2.1.4 Ensure compliance with relevant legislations, policies, rules and regulations STATEMENT Organisational Compliance Compliance with statutory and regulatory provisions and, internal policies and procedures monitored and strengthened to mitigate risk and improve organisational performance ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Percentage of compliance plans implemented New Quarterly 70% 70% 70% 70% 70% R Risk Management STATEMENT Enterprise-wide risk management strategy developed to strengthen organisational effectiveness ANNUAL INDICATOR REPORTING QUARTERLY TARGETS TARGET STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 BUDGET R thousand Minimise the impact of risk Percentage of mitigation plans implemented Changed Quarterly 70% 60% 65% 70% 70% R Internal Audit Resolve audit findings within agreed times STATEMENT Ensure that AG findings are actioned to ensure organisation s compliance ANNUAL INDICATOR REPORTING QUARTERLY TARGETS TARGET STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 BUDGET R thousand Percentage audit findings resolved within due date Changed Annual 100% % - R0 1 1 The budget for Internal Audit sits in the Finance Department Services SETA annual performance plan 2015/16 29

38 2.1.7 Office of the CEO Achieve Services SETA predetermined strategy objectives STATEMENT Organisation wide achievement of the strategy objectives ANNUAL INDICATOR REPORTING QUARTERLY TARGETS TARGET STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 BUDGET R thousand Percentage of predetermined strategic objectives achieved New Quarterly 80% 80% 80% 80% 80% R1,540 Services SETA annual performance plan 2015/16 30