Annual Performance Plan 2015/16

Annual Performance Plan 2015/16

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 2011/12 2015/16 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: +27 11 276 9600 Fax: +27 86 5277 026 Email: customercare@serviceseta.org.za ISBN: 1684 4122 Services SETA annual performance plan 2015/16 i

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

TABLE OF CONTENTS TABLE OF CONTENTS... III LIST ACRONYMS... IV PART A: STRATEGIC OVERVIEW... 1 1 UPDATED SITUATIONAL ANALYSIS... 1 1.1 PERFORMANCE DELIVERY ENVIRONMENT... 1 1.2 ORGANISATIONAL ENVIRONMENT... 2 2 REVISIONS TO LEGISLATIVE AND OTHER MANDATES... 2 3 OVERVIEW OF THE 2015-16 BUDGET AND MTEF ESTIMATES... 4 3.1 LEGISLATIVE MANDATE... 4 3.2 2014/15-2017/18 MTEF BUDGET OVERVIEW... 4 3.3 REVENUE... 4 3.3.1 Levies... 4 3.3.2 Investment Income... 5 3.4 ADMINISTRATION EXPENDITURE... 5 3.4.1 Mandatory Grants... 5 3.4.2 Discretionary Grants... 5 3.4.3 Capital Expenditure Capital Expenditure... 6 3.4.4 Conclusion... 7 3.5 INCOME AND EXPENDITURE ESTIMATES... 8 PART B: PROGRAMME AND SUB-PROGRAMME PLANS... 12 4 PROGRAMME 1: ADMINISTRATION... 12 4.1 S... 12 4.2 PROGRAMME AND ANNUAL TARGETS FOR 2015/16... 13 4.3 QUARTERLY TARGETS FOR 2015/16... 17 4.4 RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF... 21 5 PROGRAMME 2: GOVERNANCE... 22 5.1 S... 22 5.2 PROGRAMME AND ANNUAL TARGETS FOR 2015/16... 23 5.3 GOVERNANCE QUARTERLY TARGETS FOR 2015/16... 27 5.4 RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF... 31 6 PROGRAMME 3: PLANNING... 32 6.1 S... 32 6.2 PLANNING PROGRAMME AND ANNUAL TARGETS FOR 2015/16 2015/16... 33 6.3 PLANNING QUARTERLY TARGETS FOR 2015/16... 35 6.4 RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF... 37 7 PROGRAMME 4: SKILLS DEVELOPMENT... 38 7.1 S... 39 7.2 PROGRAMME AND ANNUAL TARGETS FOR 2015/16 2015/16... 40 7.3 QUARTERLY TARGETS FOR 2015/16 2015/16... 50 Services SETA annual performance plan 2015/16 iii

7.4 RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF... 59 ANNEXURE A: SERVICE LEVEL AGREEMENT ON POSSIBLE TARGETS BY LEARNING INTERVENTION... 60 ANNEXURE B: MATERIALITY AND SIGNIFICANCE FRAMEWORK... 61 ANNEXURE C: DISCRETIONARY GRANT CAPPED EXPENDITURE... 64 Services SETA annual performance plan 2015/16 iv

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

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

1.2 Organisational environment The period of administration effectively ended on 30 June 2013. The induction of the newly appointed Accounting Authority and the appointment of the Chief Executive Officer took place in July 2013. 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 2013. 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 2010-2014, to the new MTSF 2014 2019. 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

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

3 OVERVIEW OF THE 2015-16 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. 3.2 2014/15-2017/18 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 3.3.1 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

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 2015. 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 2015. 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. 3.4.1 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. 3.4.2 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

in progress due to delay in entities submitting learners information, it is expected that the contracting process will be completed in December 2014. 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 2015. The DG funding window for 2014/15 is open and will close in 09 December 2014. This is targeted at 11,634 learners in different interventions to the amount of R300 million. This process will be fully completed in March 2015. 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 2015. 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 2013/14 2014/15 2015/16 R'000 R'000 R'000 Accumulated surpluses 1,753,766 - - Projected Levies - Discreationary Grants - 787,348 844,313.67 Unclaimed Mandatory Grants - 107,465 105,327.96 Investment Income - 130,559 94,613.28 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 140,662 0 394,202 Further detail relating to discretionary grants is provided in the APP and ENE. 3.4.3 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

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

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 2012/13 2013/14 2014/15 2014/15 2015/16 2016/17 2017/18 Levies Received R 1 031 647 R 1 221 162 R 1 146 073 R 1 259 919 R 1 364 548 R 1 439 598 R 1 518 776 Levies Received: Administration 10.5% R 128 874 R 158 557 R 150 422 R 160 675 R 179 097 R 188 947 R 199 339 Levies Received: Employer Grants 20% R 644 375 R 403 547 R 286 518 R 311 897 R 341 137 R 359 900 R 379 694 Levies Received: Discretionary Grants 49.5% R 258 398 R 659 058 R 709 133 R 787 347 R 844 314 R 890 751 R 939 743 Other Income R 83 874 R 122 610 R 57 560 R 130 559 R 94 613 R 80 894 R 69 165 Penalties and Interest on Levies R 17 403 R 26 785 - - - Investment Income R 66 262 R 95 807 R 57 560 R 130 559 R 94 613 R 80 894 R 69 165 Other Income R 209 R 18 - - - Surplus prior year FY 2013 Surplus prior year FY 2012 TOTAL INCOME R 1 115 521 R 1 343 772 R 1 203 633 R 1 390 478 R 1 459 161 R 1 520 492 R 1 587 940 Income by Programmes Income outcome Budget (previous) Adjusted Appropriation Medium-term income estimate R thousand 2012/13 2013/14 2014/15 2014/15 2015/16 2016/17 2017/18 1. Administration R 128 874 R 158 557 R 150 422 R 110 577 R 132 926 R 140 237 R 147 950 2. Governance - R 34 059 R 15 932 R 16 808 R 17 733 3. Planning - - R 5 804 R 6 123 R 6 460 4. Skills Development R 986 647 R 1 185 215 R 1 053 211 R 1 245 842 R 1 304 499 R 1 376 247 R 1 451 940 TOTAL R 1 115 521 R 1 343 772 R 1 203 633 R 1 390 478 R 1 459 161 R 1 539 415 R 1 624 083 Services SETA annual performance plan 2015/16 8

All programmes by economic classification Expenditure outcome Budget (previous) Adjusted Appropriation Medium-term expenditure estimate R thousand 2012/13 2013/14 2014/15 2014/15 2015/16 2016/17 2017/18 Administrative expenses R 167 203 R 176 626 R 150 422 R 160 675 R 179 096 R 188 946 R 198 394 Compensation of employees R 77 085 R 98 018 R 58 361 R 45 497 R 63 753 R 67 259 R 70 622 Goods and services of which: R 90 118 R 78 608 R 92 061 R 115 179 R 115 343 R 121 687 R 127 771 Advertising R 2 670 R 5 887 R 2 705 R 1 714 R 3 339 R 3 522 R 3 698 Audit Fees R 5 651 R 4 930 R 6 278 R 5 034 R 4 363 R 4 603 R 4 833 Communication R 1 694 R 1 419 R 2 014 R 5 899 R 5 627 R 5 936 R 6 233 Computer services R 12 637 R 17 567 R 10 970 R 12 583 R 5 551 R 5 856 R 6 149 Consultants, contractors and special services R 40 888 R 13 241 R 8 600 R 38 928 R 31 671 R 33 413 R 35 084 Governance Fees R 2 713 R 2 974 R 6 892 R 2 971 R 2 718 R 2 867 R 3 011 Maintenance repair and running cost R 9 867 R 10 940 R 12 556 R 13 127 R 13 400 R 14 137 R 14 844 Depreciation R 1 784 R 2 594 R 15 903 R 1 752 R 9 323 R 9 836 R 10 328 Travel and subsistence R 11 270 R 11 958 R 9 284 R 20 021 R 23 957 R 25 275 R 26 538 Staff training, recruitment and assistance R 944 R 4 987 R 4 791 R 2 848 R 2 005 R 2 115 R 2 221 QCTO - R 2 111 R 3 299 R 3 299 R 5 120 R 5 402 R 5 672 Office Accommodation R 8 769 R 7 004 R 8 270 R 8 725 R 9 161 Mandatory Grants - Transfers and subsidies to: R 151 320 R 302 959 R 286 518 R 204 432 R 255 852 R 269 924 R 283 420 Provinces Agencies and accounts Universities and technikons Public corporations and private enterprises R 151 320 R 302 959 R 286 518 R 204 432 R 255 852 R 269 924 R 283 420 Foreign governments and international organisations Non-profit institutions Households Services SETA annual performance plan 2015/16 9

Discretionary Grants - Transfers and subsidies to: R 242 294 R 580 011 R 482 118 R 418 647 R 2 244 602 R 1 061 622 R 1 106 127 Provinces Agencies and accounts Universities and technikons Public corporations and private enterprises R 242 294 R 580 011 R 482 118 R 418 647 R 2 244 602 R 1 061 622 R 1 106 127 Foreign governments and international organisations Non-profit institutions Households Total expenditure R 560 817 R 1 059 596 R 919 058 R 783 754 R 2 679 551 R 1 520 492 R 1 587 941 Net surplus (deficit) R 554 704 R 284 176 R 284 575 R 606 724 -R 1 220 390 - - Note 1 The deficit arises because of disbursements of prior year's commitments. Payments for capital assets: Buildings and other fixed structures - - R 5 396 R 21 155 R 110 R 110 R 110 Machinery and equipment R 1 085 R 1 170 - - R 87 R 50 R 50 Computer equipment R 2 120 R 2 867 R 1 040 R 937 R 50 R 100 R 100 Software and other intangible assets - - R 21 440 R 60 000 R 36 667 R 15 000 R 15 000 Motor vehicle R 199 - - - R 220 - - Total Capital expenditure R 3 404 R 4 037 R 27 876 R 82 092 R 37 134 R 15 260 R 15 260 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

Expenditure by Programmes Expenditure outcome Budget (previous) Adjusted Appropriation Medium-term expenditure estimate R thousand 2012/13 2013/14 2014/15 2014/15 2015/16 2016/17 2017/18 1. Administration R 167 203 R 176 626 R 150 422 R 110 576 R 132 931 R 140 242 R 147 956 2. Governance 3. Planning - - R 328 659 R 105 232 R 111 020 R 116 655 - - - R 5 806 R 6 125 R 6 462 4. Skills Development R 393 614 R 882 970 R 768 636 R 344 519 R 2 435 582 R 1 263 105 R 1 316 868 TOTAL R 560 817 R 1 059 596 R 919 058 R 783 754 R 2 679 551 R 1 520 492 R 1 587 941 Services SETA annual performance plan 2015/16 11

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 1.1.1 Supply Chain Management Financial affairs of the Services SETA are managed in a transparent, efficient and effective manner 1.1.2 Financial Management Financial policies and practices continually improved and corrective actions implemented reinforcing compliance to achieve a clean audit 1.1.3 Project Accounting All valid and legitimate claims and payments must be timely executed 1.2.1 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 1.3.1 Information Technology ICT services are integrated, efficient and innovative enabling improved organisational efficiency and performance 1.3.2 Communications and Marketing Improved stakeholder awareness and recognised as a leading Sector Education and Training Authority Services SETA annual performance plan 2015/16 12

4.2 Programme performance indicators and annual targets for 2015/16 Supply Chain Management 1.1.1 STATEMENT Financial affairs of the Services SETA are managed in a transparent, efficient and effective manner ESTIMATED MEDIUM TERM TARGETS ACTUAL PERFORMANCE PERFORMANCE 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Comply with SCM regulations 1.1.1.1 Percentage of compliance with statutory submissions No baseline No baseline No baseline 90% 100% 100% 100% 1.1.1.2 Percentage implementation of the procurement plan No baseline No baseline No baseline Not targeted 100% 100% 100% 1.1.2 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 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Comply with financial performance requirements 1.1.2.1 Positive AG-SA Audit opinion on financial audit outcome Unqualified Qualified Unqualified Unqualified Unqualified Unqualified Unqualified Services SETA annual performance plan 2015/16 13

1.1.3 Project Accounting STATEMENT All valid and legitimate claims and payments must be timely executed ESTIMATED ACTUAL PERFORMANCE PERFORMANCE MEDIUM TERM TARGETS 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage of compliant mandatory Comply with Services 1.1.3.1 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 1.1.3.2 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

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 1.2.1.1 1.2.1.2 1.2.1.3 1.2.1.4 1.2.1.5 1.2.1.6 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 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

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 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage of achievement of business disaster 1.3.1.1 recovery plan Not applicable Not applicable Not applicable Not applicable 100% 100% 100% Percentage of uptime 1.3.1.2 of data lines Not applicable Not applicable Not applicable Not applicable 99.9% 99.9% 99.9% 1.3.2 STATEMENT Communications and Marketing Improved stakeholder awareness and recognised as a leading Sector Education and Training Authority ESTIMATED MEDIUM TERM TARGETS PERFORMANCE ACTUAL PERFORMANCE 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Increase stakeholder awareness 1.3.2.1 Promote Sector Qualifications 1.3.2.2 Number of stakeholder engagements Not applicable Not applicable Not applicable Not applicable 12 12 12 Number of individuals reached with career guidance Not applicable Not applicable Not applicable Not applicable 2000 3000 5000 Services SETA annual performance plan 2015/16 16

4.3 Quarterly targets for 2015/16 Sub-Programme 1.1.1 Finance 1.1.1 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 1.1.1.1 Percentage of compliance with statutory submissions Changed Quarterly 100% 100% 100% 100% 100% Incorporat Percentage implementation ed under 1.1.1.2 of the procurement plan Changed Quarterly 100% 100% 100% 100% 100% 1.1.3 1.1.2 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 1.1.2.1 Positive AG-SA Audit opinion Unqualifie ed under on financial audit outcome Continued Quarterly Unqualified - - - d 1.1.3 Services SETA annual performance plan 2015/16 17

1.1.3 Project Accounting Comply with Services SETA grants payment 1.2.1 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 1.1.3.1 mandatory grant reimbursements paid within 90 days of submission New Quarterly 95% 95% 95% 95% 95% 1.1.3.2 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 Q4 1.2.1.1 Rate of employee vacancy Continued Quarterly 8% 8% 8% 8% 8% 1.2.1.2 Rate of employee turnover New Quarterly 8% 8% 8% 8% 8% 1.2.1.3 Percentage of achievement of employees skills development plans New Quarterly 100% 100% 100% 100% 100% 1.2.1.4 Percentage of employees with disability New Annually 1% - - - 1% Services SETA annual performance plan 2015/16 18

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 Q4 1.2.1.5 1.2.1.6 Percentage of improvement in employee satisfaction Continued Annually 50% - - - 50% R18,837 + R67,957= R86,794 Percentage of compliance with OHS Act Continued Quarterly 85% 85% 85% 85% 85% 1.3.1 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 1.3.1.1 of business disaster recovery plan New Quarterly 100% 100% 100% 100% 100% 1.3.1.2 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

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 1.3.2.1 awareness engagements New Quarterly 12 4 4 4 4 Number of individuals Promote Sector Qualifications 1.3.2.2 reached with career guidance New Quarterly 2000 500 500 500 500 BUDGET R thousand R6378 +R 39 = R6,417 Services SETA annual performance plan 2015/16 20

4.4 Reconciling performance targets with the Budget and MTEF 1. Administration Expenditure by Programmes Medium-term expenditure estimate R thousand 2012/2013 2013/2014 2014/2015 2014/15 2015/16 2016/17 2017/18 Finance R 30 154 R 18 465 R 20 293 R 21 409 R 22 587 Human Resources & Facilities Management R 46 356 R 66 843 R 86 794 R 91 568 R 96 604 Communication Marketing R 7 455 R 3 954 R 6 417 R 6 770 R 7 142 Information Technology R 17 759 R 21 314 R 19 427 R 20 495 R 21 623 TOTAL R 167 203 R 176 626 R 101 724 R 110 576 R 132 931 R 140 242 R 147 956 Services SETA annual performance plan 2015/16 21

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 2.1.1 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 2.1.2 Board Services Governance structures and processes established, capacitated and maintained in accordance with all relevant legislation as per the legal register 2.1.3 Legal Services Provide effective legal service to the Board and all departments 2.1.4 Organisational Compliance Compliance with statutory and regulatory provisions and, internal policies and procedures monitored and strengthened to mitigate risk and improve organisational performance 2.1.5 Risk Management Enterprise-wide risk management strategy developed to strengthen organisational effectiveness 2.1.6 Internal Audit Ensure that all audit findings are actioned to ensure organisation s compliance 2.1.7 Office of the CEO Organisation wide achievement of the strategy objectives Services SETA annual performance plan 2015/16 22

5.2 Programme performance indicators and annual targets for 2015/16 2.1.1 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 2.1.1.1 2.1.1.2 2.1.1.3 2.1.1.4 2.1.1.5 2.1.1.6 2.1.1.7 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 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 3 5 8 Number of rural skills development centres Not applicable Not applicable Not applicable 2 4 6 10 Number of SMEs 90 90 90 supported Not applicable Not applicable 90 90 Number of cooperatives supported Not applicable Not applicable 90 90 90 90 90 Number of non-profit organisations supported Not applicable Not applicable 112 120 120 150 160 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

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 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Ensure good governance at the Services SETA 2.1.2.1 2.1.2.3 Number of functional structures Not applicable Not applicable Not applicable 6 6 6 6 Percentage of Accounting Authority s Resolutions implemented Not applicable Not applicable Not applicable Not applicable 100% 100% 100% 2.1.3 STATEMENT Legal Services Provide effective legal service to the Board and all departments ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Provide effective and efficient Legal Services 2.1.3.1 2.1.3.2 2.1.3.3 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

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 2.1.4.1 2.1.4.2 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 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% 2.1.5 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 2.1.5.1 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage of mitigation plans implemented Not applicable Not applicable Not applicable Not applicable 70% 80% 80% Services SETA annual performance plan 2015/16 25

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 2.1.6.1 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage audit findings resolved within due date Not applicable Not applicable Not applicable Not applicable Not applicable 100% 100% 2.1.7 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 2.1.7.1 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 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

5.3 Governance Quarterly targets for 2015/16 2.1.1 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 2.1.1.1 projects milestones completed on target New Quarterly 80% 60% 70% 80% 80% Number of partnership 2.1.1.2 developed with public entities Continued Quarterly 3 - - - 3 2.1.1.3 Number of rural skills development centres Continued Quarterly 4 - - 2 2 2.1.1.4 Number of SMEs supported Continued Annually 90 30 20 20 20 2.1.1.5 Number of cooperatives supported Continued Quarterly 90 30 20 20 20 2.1.1.6 Number of non-profit organisations supported Continued Quarterly 120 40 40 40 40 Percentage of learners 2.1.1.7 aligned to SIPs scarce occupations Continued Quarterly 15% 15% 15% 15% 15% R89,300 Services SETA annual performance plan 2015/16 27

2.1.2 Ensure good governance at the Services SETA STATEMENT 2.1.2.1 2.1.2.2 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 6 6 6 6 6 Percentage of Accounting Authority s Resolutions implemented New Quarterly 100% 100% 100% 100% 100% R4,934 2.1.3 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 2.1.3.1 2.1.3.2 2.1.3.3 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

2.1.4 Ensure compliance with relevant legislations, policies, rules and regulations 2.1.4.1 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% R249 2.1.5 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 2.1.5.1 Percentage of mitigation plans implemented Changed Quarterly 70% 60% 65% 70% 70% R205 2.1.6 Internal Audit Resolve audit findings within agreed times STATEMENT 2.1.6.1 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% - - 100% - R0 1 1 The budget for Internal Audit sits in the Finance Department Services SETA annual performance plan 2015/16 29

2.1.7 Office of the CEO Achieve Services SETA predetermined strategy objectives 2.1.7.1 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

5.4 Reconciling performance targets with the Budget and MTEF 2. Governance Expenditure by Programmes Expenditure outcome Expected Expenditure Medium-term expenditure estimate R thousand 2012/2013 2013/2014 2014/2015 2014/15 2015/16 2016/17 2017/18 Special Projects R 294 600 R 89 300 R 94 212 R 98 922 Board Secretariat Services R 6 892 R 4 027 R 4 934 R 5 205 R 5 492 Legal Service R 7 358 R 10 000 R 9 004 R 9 499 R 10 022 Organisational Compliance - R 161 R 249 R 263 R 277 Internal Audit 2 - - - - - Risk Management - R 107 R 205 R 216 R 228 CEO R 9 696 R 19 764 R 1 540 R 1 625 R 1 714 TOTAL R 23 946 R 328 659 R 105 232 R 111 020 R 116 655 2 The budget for Internal Audit is included under Finance Services SETA annual performance plan 2015/16 31

6 PROGRAMME 3: PLANNING Purpose: To enable the Services SETA strategic management capability to achieve their mandate Description: Functions of this programme encompass research and planning, performance information monitoring and reporting, and evaluation. It is responsible for researching skills needs within the services sector, developing strategic and annual performance plans of the Services SETA, compilation of the annual report, and build organisation capability to use strategic performance information is executing the strategy. 6.1 Strategic Objectives # Strategic Objective Title Strategic Objective Statement 3.1.1. Sector Skills and Strategic Plans Services sector needs researched, documented and communicated to enable effective planning across all economic sub-sectors annually 3.1.2 Performance Reporting All reporting requirements are met within prescribed time 3.1.3. Impact Assessment All performance baseline, outcome and impact evaluations result in programme improvements contributing towards continuous learning and knowledge creation Services SETA annual performance plan 2015/16 32

6.2 Planning Programme performance indicators and annual targets for 2015/16 2015/16 3.1.1 STATEMENT Sector Skills and Strategic Planning Services sector needs researched, documented and communicated to enable effective planning across all economic subsectors annually ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Produce a well-informed SSP, SP and APP as prescribed 3.1.1.1 3.1.1.2 3.1.1.3 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Quality rating of research conducted Not applicable Not applicable Not applicable Not applicable 3/5 3/5 4/5 On time submission of Sector Skills Plan Achieved Achieved Achieved Achieved As prescribed As prescribed As prescribed On time submission of Strategic and Annual Performance Plans Achieved Achieved Achieved Achieved As prescribed As prescribed As prescribed 3.1.2 STATEMENT Performance Reporting All reporting requirements are met within prescribed time ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Monitor Services SETA s performance against predetermined objectives as prescribed 3.1.2.1 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Number of performance reports submitted on time 5 5 5 5 5 5 5 Services SETA annual performance plan 2015/16 33

3.1.3 STATEMENT Impact Assessment All performance baseline, outcome and impact evaluations result in programme improvements contributing towards continuous learning and knowledge creation ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Improve the impact assessment within Services SETA 3.1.3.1 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Number of impact assessment studies conducted Not applicable Not applicable Not applicable 0 2 3 3 Services SETA annual performance plan 2015/16 34

6.3 Planning Quarterly targets for 2015/16 3.1.1 STATEMENT Sector Skills and Strategic Planning Services sector needs researched, documented and communicated to enable effective planning across all economic sub-sectors annually ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Produce a well-informed SSP, SP and APP as prescribed 3.1.1.1 3.1.1.2 3.1.1.3 Quality rating of research conducted New Annually 3/5 - - - 3/5 29 May 03 August 2015 2015" On time submission of 15 June 30 August Sector Skills Plan Continued Quarterly As prescribed 2015 2015 - - On time submission of Strategic and Annual Performance Plans Continued Quarterly As prescribed - 30-Aug-15 15-Nov-15 31-Jan-16 R3,000 Performance Reporting 3.1.2 Monitor Services SETA s performance against predetermined objectives as prescribed 3.1.2.1 STATEMENT All reporting requirements are met within prescribed time ANNUAL INDICATOR REPORTING QUARTERLY TARGETS TARGET STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 BUDGET R thousand Number of performance reports submitted on time Continued Quarterly 5 1 1 1 1 R806 Services SETA annual performance plan 2015/16 35

Impact Assessment 3.1.3 All performance baseline, outcome and impact evaluations result in programme improvements contributing STATEMENT towards continuous learning and knowledge creation ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Improve the impact assessment within Services Number of impact assessment studies SETA 3.1.3.1 conducted Continued Quarterly 2 -,- 1 1 R2,000 Services SETA annual performance plan 2015/16 36

6.4 Reconciling performance targets with the Budget and MTEF 3. Planning Expenditure by Programmes Expenditure outcome Expected Expenditure Medium-term expenditure estimate R thousand 2012/2013 2013/2014 2014/2015 2014/15 2015/16 2016/17 2017/18 Planning - - R 1 148 - R 5 806 R 6 125 R 6 462 TOTAL - - R 1 148 - R 5 806 R 6 125 R 6 462 Services SETA annual performance plan 2015/16 37

7 PROGRAMME 4: SKILLS DEVELOPMENT Purpose The purpose of the skills development programme is to deliver the Services SETA service offering to the target stakeholders in order to achieve the mandate Description This programme consists of six core units: quality management; learning intervention facilitation; mandatory grants; learning intervention coordination, chambers and provincial coordination. The Quality Management unit is responsible for the development of qualifications of the Services SETA. It is also provides accreditation to training providers as well as assuring quality of learners achievements. Learning intervention units deals with the development and maintenance of a learning interventions policy framework, developing project implementation plans, identifying workplaces, employers, learners to participate in Services SETA programmes, facilitation of procurement processes, contracting project managers and providers to deliver programmes, monthly reports to Projects office on status of projects, contract management, quality management of process implementation, uploading of Learner Templates, site visits for pre-qualifying and monitoring, processing of invoices to Finance, resolving learner and employer enquiries and performance management of projects. The Mandatory Grant unit relates to the promotion of sound planning and reporting via quality WSPs and ATRs, mandatory grant payments, inter-seta transfers and Skills Development Facilitators support. The programme also covers the development of policies, procedures, criteria etc. for the allocation of SETA mandatory grants. Mandatory Grants are paid in terms of sub-regulation 6(2) of the SDA. Member organisations that submit WSPs and ATRs are entitled to receive a proportion of the levy (1% of salaries paid) as a mandatory grant, subject to meeting certain requirements that the SETA may set. The primary purpose of Chambers and Provincial Office units is to facilitate the development of sector, subsector and regional plans that are research based and monitored jointly with stakeholders. The main research focus will be on understanding the Services SETA through labour market information research and to identify skills needs and the scarce and critical skills in order to adopt a sound framework for strategic planning. This will lead to the construction of a comprehensive sector profile and analysis for the sector and its sub-sectors. There will also be a focus on partnerships with FET and HET institutions, strategies to develop strong credible research and the availability and accessibility of research to the sector and the public. Services SETA annual performance plan 2015/16 38

7.1 Strategic Objectives # Strategic Objective Title Strategic Objective Statement 4.1.1 Quality Management Quality assurance of occupational learners according to the QCTO assessment policy and certification process 4.1.2 Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements 4.1.3 Artisan Development and Hairdressing Artisan development interventions should be addressed in order to meet the national requirements of skilled artisans and prioritise hairdressing interventions to meet the sector skills demands 4.1.4 Learning Intervention Coordination Uptake of funded and unfunded learning interventions should be improved and monitored to take good stock of the pool of labour provided within the sector An increase uptake of mandatory grants to facilitate increase in unfunded interventions 4.1.5 Chambers Chambers should interact with the sector role players to build their capacity to identify and implement response to sector skills needs 4.1.6 Provincial Operations Provincial offices should be equipped to support learners, employers and SDPs to access the Services SETAs training opportunities Services SETA annual performance plan 2015/16 39

7.2 Programme performance indicators and annual targets for 2015/16 2015/16 4.1.1 STATEMENT Quality Management Quality assurance of occupational learners according to the QCTO assessment policy and certification process ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Ensure effective quality assurance in response to the skills needs of the services sector 4.1.1.1 4.1.1.2 4.1.1.3 4.1.1.4 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage of qualifications developed for priority skills 25% 52% 51% 65% 75% 90% 95% Percentage of registered qualifications which have learners enrolled Not applicable Not applicable Not applicable Not applicable 50% 65% 70% Percentage of moderators and assessors applications processed within 90 days Not applicable Not applicable Not applicable Not applicable 80% 90% 95% Percentage of SDP applications processed within 90 days Not applicable Not applicable Not applicable Not applicable 80% 90% 95% Services SETA annual performance plan 2015/16 40

4.1.1 Quality Management STATEMENT Quality assurance of occupational learners according to the QCTO assessment policy and certification process 4.1.1.5 Percentage of competent learners certificated within 90 days Not applicable Not applicable Not applicable Not applicable 80% 90% 95% 4.1.1.6 Percentage of SDP monitored within established timeframes Not applicable Not applicable Not applicable Not applicable 80% 90% 95% 4.1.2 STATEMENT Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Encourage levy-paying employers to apply for Mandatory Grant 4.1.2.1 4.1.2.2 4.1.2.3 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage of levy paying employers submitting Mandatory Grants applications Not applicable Not applicable Not applicable 9% 15% 20% 25% Percentage of levypaying employers reimbursed for mandatory grants Not applicable 69% (572/828) 62% (1,792/2,906) 100% 50% 50% 50% Percentage of employers applications for inter-seta transfer processed within 60 days Not applicable Not applicable Not applicable Not applicable 50% 70% 80% Services SETA annual performance plan 2015/16 41

4.1.2 TITLE STATEMENT Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements STRATEGIC ACTIVITY Increase leaner participation and completion in funded and unfunded learning interventions 4.1.2.4 4.1.2.5 4.1.2.5.1 4.1.2.5.2 PERFORMANCE INDICATORS ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage of unfunded employer applications processed within 60 days Not applicable Not applicable Not applicable - 90% 90% 90% Number of funded learners enrolled Total: 4,312 Total: 2,299 Total: 10,621 Total: 41,755 Total: 13,437 3 Total: 28,039 4 Total: 29,581 5 Number of Learnerships enrolled Number of Bursaries enrolled Total: 1,276 491 785 Total: 128 128 0 Total: 992 284 708 Total: 0 0 0 Total: 5,682 2,595 3,087 Total: 744 646 98 Total: 10,761 2,455 8,306 Total: 4,170 1,289 2,881 Total: 8 000 3,000 5,000 Total: 11,977 Total: 12,636 Total: 760 700 60 Total: 2,262 Total: 2,387 3 This total learner number is disaggregated by learning interventions and employment status highlighted below 4 This total learner number is disaggregated by learning interventions only covering the MTEF 5 This total learner number is disaggregated by learning interventions only covering the MTEF Services SETA annual performance plan 2015/16 42

4.1.2 STRATEGIC ACTIVITY 4.1.2 TITLE STATEMENT PERFORMANCE INDICATORS Number of Skills Programmes 4.1.2.5.3 enrolled Number of Internships 4.1.2.5.4 enrolled TITLE STATEMENT Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Total: 493 237 256 Total: 281 81 200 Total: 615 615 6 Total: 1,026 1,026 Total: 1,032 1 002 30 Total: 1,171 1,171 Total: 7,868 5,898 1,970 Total: 15,004 15,004 Total: 3,000 3,000 0 Total: 4,524 Total: 4,773 Total: 288 288 Total: 5,655 Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements Total: 5,967 STRATEGIC ACTIVITY 4.1.2.5.5 4.1.2.5.6 PERFORMANCE INDICATORS ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Number of RPL programmes enrolled Not applicable Not applicable Number of AET Programmes enrolled 0 0 Total: 1,314 1,314 Total: 578 578 Total: 800 800 Total: 422 422 Total: 1,009 1,009 Total: 200 200 Total: 1,583 1,583 Total: 452 452 Total: 1,671 1,671 Total: 477 477 6 Internship programme is meant for unemployed learners only Services SETA annual performance plan 2015/16 43

4.1.2 STRATEGIC ACTIVITY Achieve transformational imperative goals 4.1.2.6 STATEMENT 4.1.2.7 4.1.2.8 4.1.2.9 4.1.2.10 4.1.2.11 4.1.2.12 4.1.2.13 Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements ESTIMATED ACTUAL PERFORMANCE PERFORMANC MEDIUM TERM TARGETS E 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage of unemployed learners enrolled To be confirmed To be confirmed 41% Not targeted 50% 50% 50% Percentage of female learners To be enrolled confirmed To be confirmed 64% Not targeted 60% 60% 60% Percentage of black learners To be enrolled confirmed To be confirmed 91% Not targeted 85% 85% 85% Percentage of learners enrolled To be with disabilities confirmed To be confirmed 1% Not targeted 4% 4% 4% Percentage of youth learners To be enrolled confirmed To be confirmed 70% Not targeted 60% 60% 60% Percentage of rural learners enrolled Not applicable Not applicable 44% 20% 20% 20% 20% Percentage of learners enrolled and placed through FETs and HETs Not applicable Not applicable Not applicable 40% 30% 40% 40% Percentage of learners enrolled and placed within public and state owned enterprises Not applicable Not applicable Not applicable 10% 5% 5% 5% Services SETA annual performance plan 2015/16 44

4.1.3 STATEMENT Artisan Development and Hairdressing Artisan development interventions should be addressed in order to meet the national requirements of skilled artisans and prioritise hairdressing interventions to meet the sector skills demands ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Implement artisan development and hairdressing interventions 4.1.3.1 4.1.3.2 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Number of Apprentices enrolled 1 800 0 100 2 730 180 1 583 1 671 Number of Apprentices certificated 947 0 0 191 832 855 371 Services SETA annual performance plan 2015/16 45

4.1.4 STATEMENT Learning Intervention Coordination Uptake of funded and unfunded learning interventions should be improved and monitored to take good stock of the pool labour provided within the sector An increase uptake of mandatory grants to facilitate increase in unfunded interventions STRATEGIC ACTIVITY Certificate competent learners 4.1.4.1 4.1.4.2 4.1.4.2.1 4.1.4.2.2 4.1.4.2.3 4.1.4.2.4 4.1.4.2.5 PERFORMANCE INDICATORS ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage of Discretionary Grants contracts closed out on time Not applicable Not applicable Not applicable Not applicable 70% 80% 80% Number of funded learners Certificated Total: 2,365 Total: 1,421 Total: 131 Total: 2,664 Total: 12,346 Total: 15,214 Total: 9,639 Number of Learnerships certificated Number of Bursaries certificated Number of Skills Programmes certificated Number of Internships completed Number of RPL programmes certificated Total: 818 132 686 Total: 150 116 34 Total: 450 134 316 Total: 0 Total: 0 Total: 366 123 243 Total: 0 0 0 Total: 0 200 0 Total: 1,055 1,055 Total: 0 0 0 Total: 131 0 131 Total: 0 0 0 Total: 0 0 0 Total: 0 0 Total: 0 0 0 Total: 1,327 610 717 Total: 144 125 19 Total: 271 263 8 Total: 352 352 Total: 263 Total: 4,143 Total: 4,828 Total: 4,795 Total: 1,051 Total: 1,403 Total: 680 Total: 1,980 Total: 2,960 Total: 1,805 Total: 3,528 3,528 Total: 4,559 Total: 1,217 Total: 554 Total: 442 Total: 619 Services SETA annual performance plan 2015/16 46

4.1.4 STATEMENT Learning Intervention Coordination Uptake of funded and unfunded learning interventions should be improved and monitored to take good stock of the pool labour provided within the sector An increase uptake of mandatory grants to facilitate increase in unfunded interventions STRATEGIC ACTIVITY 4.1.4.2.6 4.1.4.3.1 PERFORMANCE INDICATORS Number of AET Programmes certificated ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Total: 0 Total: 0 Total: 0 Total: 116 Total: 258 Total: 167 Total: 150 0 0 0 0 Number of bursaries enrolled for post graduate studies Not applicable Not applicable Not applicable Not applicable 10% 15% 20% Services SETA annual performance plan 2015/16 47

4.1.5 STATEMENT Chambers Chambers should interact with the sector role players to build their capacity to identify and implement response to sector skills needs ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Ensure functional chambers supporting sub-sector growth and capability 4.1.5.1 4.1.5.2 4.1.5.3 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Number of functional chamber committees Not applicable Not applicable Not applicable 6 6 6 6 Number of subsector development plans implemented Not applicable Not applicable Not applicable 6 12 16 16 Number of sector role players engaged Not applicable Not applicable Not applicable 500 400 500 600 Services SETA annual performance plan 2015/16 48

4.1.6 Render quality support service to key stakeholders through provincial offices 4.1.6.1 STATEMENT 4.1.6.2 Provincial Operations Provincial offices should be equipped to support learners, employers and SDPs to access the Services SETAs training opportunities ESTIMATED ACTUAL PERFORMANCE PERFORMANC MEDIUM TERM TARGETS E 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Number of functional provincial stakeholder forums Not applicable Not applicable Not applicable Not applicable 10 20 30 Number of sector employers supported Not applicable Not applicable Not applicable Not applicable 200 200 200 Services SETA annual performance plan 2015/16 49

7.3 Quarterly targets for 2015/16 2015/16 4.1.1 Ensure effective quality assurance in response to the skills needs of the services sector 4.1.1.1 STATEMENT 4.1.1.2 4.1.1.3 Quality Management Quality assurance of occupational learners according to the QCTO assessment policy and certification process ANNUAL INDICATOR REPORTING QUARTERLY TARGETS TARGET STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 Percentage of qualifications developed for priority skills New Quarterly 75% - - - 75% Percentage of registered qualifications which have learners enrolled New Quarterly 50% (37/74) - - - Percentage of moderators and assessors applications processed within 90 days Continued Quarterly 80% 60% 65% 75% 80% 50% (37/74) BUDGET R thousand 4.1.1.4 4.1.1.5 Percentage of SDP applications processed within 90 days Continued Annually 80% 60% 65% 75% 80% Percentage of competent learners certificated within 90 days Continued Quarterly 80% 80% 80% 80% 80% 4.1.1.6 Percentage of SDP monitored within established timeframes Continued Quarterly 95% 60% 65% 75% 80% R9,495 Services SETA annual performance plan 2015/16 50

4.1.2 Encourage levy-paying employers to apply for Mandatory Grant STATEMENT 4.1.2.1 4.1.2.2 4.1.2.3 Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Percentage of levy paying employers submitting Mandatory Grants applications Continued Quarterly Percentage of levypaying employers reimbursed for mandatory grants Changed Quarterly 50% (4,291/8,582) 50% (1072) 50% (1072) 50% (1073) 50% (1073) 50% (2,146/4,291) 50% (536) 50% (536) 50% (537) 50% (537) Percentage of employers applications for inter-seta transfer processed within 60 days New Quarterly 50% 50% 50% 50% 50% R256,977 Services SETA annual performance plan 2015/16 51

4.1.2 STRATEGIC ACTIVITY Increase leaner participation and completion in funded and unfunded learning interventions 4.1.2.4 STATEMENT 4.1.2.5 4.1.2.5.1 4.1.2.5.2 4.1.2.5.3 4.1.2.5.4 Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements ANNUAL BUDGET INDICATO REPORTIN QUARTERLY TARGETS TARGET R R STATUS G PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Percentage of unfunded employer applications processed within 60 days New Quarterly 50% 10% 10% 10% 20% Number of funded learners enrolled Continued Quarterly Number of Learnerships enrolled Continued Quarterly Number of Bursaries enrolled Continued Annually Number of Skills Programmes enrolled Continued Quarterly Number of Internships enrolled Continued Quarterly Total: 13,437 Unemployed Total: 8,000 3,000 5,000 Total: 760 700 60 Total: 3,000 3,000 Total: 288 Total: 3,359 Unemployed Total: 2,000 750 1,250 Total: 190 175 15 Total: 750 750 Total: 72 72 Total: 3,359 Unemployed Total: 2,000 750 1,250 Total: 190 175 15 Total: 750 750 Total: 72 72 Total: 3,360 Unemployed Total: 2,000 750 1,250 Total: 190 175 15 Total: 750 750 Total: 72 72 Total: 3,360 R302,607 Total: 2,000 750 1,250 R234,777 Total: 190 175 15 R27,800 Total: 750 750 R24,300 Total: 72 72 R8,748 Services SETA annual performance plan 2015/16 52

4.1.2 STRATEGIC ACTIVITY STATEMENT 4.1.4.5.5 4.1.4.5.6 Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements ANNUAL BUDGET INDICATO REPORTIN QUARTERLY TARGETS TARGET R R STATUS G PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Total: 1,009 Total: 252 Total: 252 Total: 252 Total: 252 Unemployed R6,558 Number of RPL programmes enrolled Continued Quarterly Number of AET Programmes enrolled Continued Quarterly Total: 200 Total: 50 Total: 50 Total: 50 Total: 50 R1,200 Services SETA annual performance plan 2015/16 53

4.1.2 Achieve transformational imperative goals STATEMENT 4.1.2.6 4.1.2.7 4.1.2.8 4.1.2.9 4.1.2.10 4.1.2.11 4.1.2.12 4.1.2.13 Learning Intervention Facilitation Annual increase in the number of companies that submit plans for investment in workplace-based skills development and report on achievements ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 Thousand Percentage of unemployed learners enrolled Changed Quarterly 50% 50% 50% 50% 50% Percentage of female learners enrolled Changed Quarterly 60% 60% 60% 60% 60% Percentage of black learners enrolled Changed Quarterly 85% 85% 85% 85% 85% Percentage of learners enrolled with disabilities Changed Quarterly 4% 4% 4% 4% 4% Percentage of youth learners enrolled Changed Quarterly 60% 60% 60% 60% 60% Percentage of rural learners enrolled Changed Quarterly 20% 20% 20% 20% 20% Percentage of learners enrolled and placed through FETs and HETs Changed Quarterly 30% 30% 30% 30% 30% Percentage of learners enrolled and placed within public and state owned enterprises Changed Quarterly 5% 5% 5% 5% 5% R0 Services SETA annual performance plan 2015/16 54

4.1.3 Implement artisan development and hairdressing interventions 4.1.3.1 STATEMENT 4.1.3.2 Artisan Development and Hairdressing Artisan development interventions should be addressed in order to meet the national requirements of skilled artisans and prioritise hairdressing interventions to meet the sector skills demands ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Number of Apprenticeships enrolled Continued Quarterly 180 45 45 45 45 Number of Apprenticeships certificated Continued Quarterly 832 208 208 208 208 R6,095 Services SETA annual performance plan 2015/16 55

4.1.4 STRATEGIC ACTIVITY Certificate competent learners STATEMENT 4.1.4.1 4.1.4.2 4.1.4.2.1 4.1.4.2.2 4.1.4.2.3 4.1.4.2.4 4.1.4.2.5 Learning Intervention Coordination Uptake of funded and unfunded learning interventions should be improved and monitored to take good stock of the pool labour provided within the sector An increase uptake of mandatory grants to facilitate increase in unfunded interventions ANNUAL BUDGET INDICATO REPORTIN QUARTERLY TARGETS TARGET R R STATUS G PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Percentage of Discretionary Grants contracts closed out on time Continued Quarterly Number of funded learners Certificated Continued Quarterly Number of Learnerships certificated Continued Quarterly Number of Bursaries certificated Continued Quarterly Number of Skills Programmes certificated Continued Quarterly Number of Internships completed Continued Quarterly Number of RPL programmes certificated Continued Quarterly Total: 12,346 Total: 4,143 1,426 2,717 Total: 1,051 455 595 Total: 1,980 1,535 445 Total: 3,528 3,528 Total: 554 Total: 258 Total: 3,049 Total: 933 356 679 Total: 262 248 Total: 489 383 111 Total: 954 954 Total: 138 Total: 64 Total: 3,049 Total: 933 356 679 Total: 262 148 Total: 489 383 111 Total: 954 954 Total: 138 Total: 64 Total: 3,049 Total: 933 357 679 Total: 263 149 Total: 489 384 111 Total: 954 954 Total: 139 Total: 65 Total: 3,050 Total: 933 357 679 Total: 263 149 Total: 489 384 111 Total: 954 954 Total: 139 Total: 65 Services SETA annual performance plan 2015/16 56

4.1.4 STRATEGIC ACTIVITY STATEMENT 4.1.4.2.6 4.1.4.3.1 Learning Intervention Coordination Uptake of funded and unfunded learning interventions should be improved and monitored to take good stock of the pool labour provided within the sector An increase uptake of mandatory grants to facilitate increase in unfunded interventions ANNUAL BUDGET INDICATO REPORTIN QUARTERLY TARGETS TARGET R R STATUS G PERIOD 2015/16 Q1 Q2 Q3 Q4 thousand Total: 258 Total: 64 Total: 64 Total: 65 Total: 65 R68,923 Number of AET Programmes certificated Continued Quarterly Number of bursaries enrolled for post graduate studies New Annually 10% - - - 10% R0 Services SETA annual performance plan 2015/16 57

4.1.5 Ensure functional chambers supporting sub-sector growth and capability 4.1.6 Render quality support service to key stakeholders through provincial offices STATEMENT 4.1.5.1 4.1.5.2 4.1.5.3 Chambers Chambers should interact with the sector role players to build their capacity to identify and implement response to sector skills needs ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 Thousand Number of functional chamber committees New Quarterly 6 6 6 6 6 Number of subsector development plans implemented New Quarterly 12 3 3 3 3 Number of sector role players engaged Continued Quarterly 400 100 200 300 400 R8,367 STATEMENT 4.1.6.1 4.1.6.2 Provincial Operations Provincial offices should be equipped to support learners, employers and SDPs to access the Services SETAs training opportunities ANNUAL BUDGET INDICATOR REPORTING QUARTERLY TARGETS TARGET R STATUS PERIOD 2015/16 Q1 Q2 Q3 Q4 Thousand Number of functional provincial stakeholder forums New Quarterly 10 2 2 3 3 Number of sector employers supported Changed Quarterly 200 50 50 50 50 R5,439 Services SETA annual performance plan 2015/16 58

7.4 Reconciling performance targets with the Budget and MTEF 4. Skills Development Expenditure by Programmes Medium-term expenditure estimate R thousand 2012/2013 2013/2014 2014/2015 2014/15 2015/16 2016/17 2017/18 Quality Management R 11 576 R 2 547 R 9 495 R 10 018 R 10 569 Learning Intervention 7 R 768 936 R 331 495 R 2 412 281 R 1 238 522 R 1 290 933 Provinces R 10 335 R 3 506 R 5 439 R 5 738 R 6 054 Chambers R 1 393 R 6 971 R 8 367 R 8 827 R 9 313 TOTAL R 393 614 R 882 970 R 792 240 R 344 519 R 2 435 582 R 1 263 105 R 1 316 868 7 This figure includes budget for Learning Intervention Facilitation, Artisan Development and Hairdressing Interventions, and Learning Interventions Project Coordination Services SETA annual performance plan 2015/16 59

ANNEXURE A: SERVICE LEVEL AGREEMENT ON POSSIBLE TARGETS BY LEARNING INTERVENTION Services SETA annual performance plan 2015/16 60

ANNEXURE B: MATERIALITY AND SIGNIFICANCE FRAMEWORK TREASURY REGULATION 28.1.5 states that: For purposes of material [sections 50(1), 55(2) and 61(1) (c) of the Act] and significant [section 54(2) of the Act], the accounting authority must develop and agree a framework of acceptable levels of materiality and significance with the relevant executive authority in consultation with the external auditors. Below is an outline of specific regulation articles to which the Services SETA should comply. We have provided an explanation of how each prescript has been addressed. Section 50(1) (1) The accounting authority for a public entity must - (a) Exercise the duty of utmost care to ensure reasonable protection of the assets and records of the public entity; (b) Act with fidelity, honesty, integrity and in the best interest of the public entity in managing the financial affairs of the public entity; The Accounting Authority implement effective and efficient internal controls, governance and risk management processes through its committees and as a collective. Key policies and procedures have been approved. Good governance, professional conduct and ethical behaviour is encouraged across all organisational levels. (c) On request, disclose to the executive authority responsible for that public entity or the legislature to which the public entity is accountable, all material facts, including those reasonably discoverable, which in any way influence the decision or actions of the executive authority or that legislature; and (d) Seek, within the sphere of influence of that accounting authority, to prevent any prejudice to the financial interests of the state. Through frequent engagements with stakeholders (internal and external), important and relevant information is shared and transparency is achieved. Services SETA implements an on-going risk management assessment and review processes to mitigate and prevent any prejudice to the financial interest of Services SETA. Section 55(2) (2) The annual report and financial statements referred to by PFMA Subsection 55 (1)(d) must (a) Fairly present the state of affairs of the public entity, its business, its financial results, its performance against pre-determined objectives and its financial position as at the end of the financial year concerned; As a collective the Accounting Authority, its committees and management are involved into the compilation and review processes of the Annual Financial Statements and the Annual Report to ensure that they fairly present and disclose results of the Services SETA. Services SETA annual performance plan 2015/16 61

(b) include particulars of (i) Any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful expenditure that occurred during the financial year; (ii) Any criminal or disciplinary steps taken as consequence of such losses or irregular expenditure or fruitless and wasteful expenditure; (iii) Any losses recovered or written off; (iv) Any financial assistance received from the state and commitments made by the state on its behalf; and (v) Any other matters that may be prescribed; and (c) Include the financial statements of any subsidiaries. All losses are disclosed in the AFS. All activities are disclosed in the AFS. All losses recovered or written off are disclosed in the AFS. All financial assistance received or committed is disclosed. Services SETA will apply any other matters that become prescriptive. Not applicable. Section 54 (2) (1) Before a public entity concludes any of the following transactions, the accounting authority for the public entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its executive authority for approval of the Transaction. Establishment or participation in the establishment of a company; Participation in a significant partnership, trust, unincorporated joint venture or similar arrangement. Acquisition of disposal of a significant shareholding in a company. Acquisition or disposal of a significant asset. Not applicable. Not applicable. Not applicable. Not applicable to this reporting period Services SETA annual performance plan 2015/16 62

Commencement or cessation of a significant business activity; And Not applicable. A significant change in the nature or extent of its interest in a significant partnership, trust, unincorporated joint venture or similar arrangement. Not applicable Section 61 (1) (c ) The report of an auditor appointed in terms of section 58(1) (b) must be addressed to the executive authority responsible for the public entity concerned and must state separately in respect of each of the following matters whether in the auditor s opinion The level of material loss is assessed at 0.5% of gross revenue, limited to R3, 6 million. Revenue includes levy income, interest and penalties and any other income. (c) The transactions that had come to the auditor s attention during auditing were in all material respects in accordance with the mandatory functions of the public entity determined by law or otherwise. (1) An institution to which this Act applies may not borrow money or issue a guarantee, indemnity or security, or enter into any other transaction that binds or may bind that institution or the Revenue Fund to any future financial commitment, unless such borrowing, guarantee, indemnity, security or other transaction (a) Is authorised by this Act; and (b) In the case of public entities, is also authorised by other legislation not in conflict with this Act; and (c) In the case of loans by a province or a provincial government business enterprise under the ownership control of a provincial executive, is within the limits as set in terms of the Borrowing Powers of Provincial Governments Act, 1996 (Act No 48 of 1996). Services SETA operates within the ambit as set by this clause and its related Acts. Services SETA annual performance plan 2015/16 63

ANNEXURE C: DISCRETIONARY GRANT CAPPED EXPENDITURE The Services SETA was advised to cap its 2015/16 expenditure. As per the Annual Performance Plan Addendum 2014/15, 100% of the capped budget has been deducted from the pivotal learning programmes budget as illustrated in table 1 below due to the following: Mandatory Grant allocations are determined through statutory regulation at 20% of levy income. Administration costs fixed at 10.5% of levy income are largely made up of human resources and related operational costs that cannot be reduced over the short-term. Discretionary Grant project administration and enabling programmes are project and activity costs that are not directly linked to learner volumes. Notwithstanding, the late enrolment of learners from the previous financial year necessitates maintenance of capacity and planned activities. Table 2 and explanatory notes that follow shows that the capped budget will enable the Services SETA to enrol 44% (13,473/30,872) of the uncapped budget. Approval to spend the priority budget can increase the learner enrolment total to 63% (19,476/30,872) of the uncapped budget as some of the priority budget has been reallocated to unemployed bursaries, internships and artisans. The capped targets have been inserted into the Annual Performance Plan. Services SETA annual performance plan 2015/16 64

Table 1: Summary of 2015/15 budget uncapped and capped Levy income budget allocation % 2015/16 Total levy income 100% R 1,705,684,188 NSF 20% R 341,136,838 Administration 10.5% R 179,096,840 Mandatory 20% R 341,136,838 Discretionary 49.5% R 844,313,673 Uncapped budget 80% R 1,364,547,350 Investment income R 94,613,280 TOTAL Revenue R 1,459,160,630 Capped expenditure R 963,174,000 Capped amount R 495,986,630 Disaggregation of Discretionary Grant budget for 2015/16 2015/16 Uncapped Discretionary Grant R 844,313,673 DG Project Administration (7.5%) R 63,323,525 DG Subtotal R 780,990,147 20% Enabling R 156,198,029 80% Pivotal R 624,792,118 Mandatory Grant 2013/14 unspent R 85,284,209 Investment income R 94,613,280 UNCAPPED learning programme R 804,689,607 Expenditure cap R 963,174,000 Capped amount R 495,986,630 CAPPED learning programme R 308,702,977 Priority budget 2015/16 1. Conditional grants R 225,565,223 2. Student funding for Technical and Vocational education R 84,114,300 3. Bursary support possibly through NSFAS R 186,307,107 Total R 495,986,630 Services SETA annual performance plan 2015/16 65

Table 2: APP learner enrolment targets resulting from expenditure capping Targets and budget by learning intervention 2015/16 Uncapped Budget 2015/16 Capped Budget 2015/16 Learner Priority Budget 2015/16 Capped Budget plus Learner Priority Budget # of learners Budget # of learners Budget # of learners Budget # of learners Budget Learnerships 11,976 R 347,313,380 8,000 R 234,000,777 0 0 8,000 R 234,000,777 Employed 4,657 R 83,834,100 3,000 R 54,000,000 0 R 0 3,000 R 54,000,000 Unemployed 7,319 R 263,479,280 5,000 R 180,000,777 0 R 0 5,000 R 180,000,777 Bursaries 2,661 R 125,085,800 760 R 27,800,000 3,387 R 186,307,107 4,147 R 214,107,107 Employed 1,065 R 37,259,600 700 R 24,500,000 0 R 0 700 R 24,500,000 Unemployed 1,597 R 87,826,200 60 R 3,300,000 3,387 R 186,307,107 3,447 R 189,607,107 Skills programmes 5,323 R 43,114,680 3,000 R 24,300,000 0 R 0 3,000 R 24,300,000 Employed 5,323 R 43,114,680 3,000 R 24,300,000 0 R 0 3,000 R 24,300,000 Unemployed 0 R 0 0 R 0 0 R 0 0 R 0 Internships 6,654 R 210,782,880 288 R 8,748,000 1,632 R 49,572,000 1,920 R 58,320,000 Unemployed entering internships/workplace experience 1,996 R 71,857,800 75 R 2,700,000 425 R 15,300,000 500 R 18,000,000 FET college interns (part of qualification) 1,597 R 57,486,240 45 R 1,620,000 255 R 9,180,000 300 R 10,800,000 FET Graduate Placement 2,395 R 57,486,240 135 R 3,240,000 765 R 18,360,000 900 R 21,600,000 Work Integrated Learning (Universities) 665 R 23,952,600 33 R 1,188,000 187 R 6,732,000 220 R 7,920,000 Artisans 1,863 R 63,089,818 180 R 6,095,700 1,020 R 34,542,300 1,200 R 40,638,000 Apprenticeship and trade test 1,304 R 60,574,795 126 R 5,852,700 714 R 33,165,300 840 R 39,018,000 Assessment and trade test 559 R 2,515,023 54 R 243,000 306 R 1,377,000 360 R 1,620,000 RPL 1,863 R 12,109,370 1,009 R 6,558,500 0 R 0 1,009 R 6,558,500 AET 532 R 3,193,680 200 R 1,200,000 0 R 0 200 R 1,200,000 TOTAL 30,872 R 804,689,607 13,437 R 308,702,977 6,039 R 270,421,407 19,476 R 579,124,385 Conditional Grants R 225,565,223 TOTAL R 804,689,607 Services SETA annual performance plan 2015/16 66