PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE ON

HIGHER EDUCATION AND TRAINING

26 FEBRUARY 2014

AGENDA1. Introduction

2. Strategic overview

• Vision, mission, values

3. 2012/13 financial performance

• 2012/13 annual report

• Auditor General’s report

4. 2012/13 non-financial performance

• Learning programmes, ETQA

• Human Resources

• Information and communications technology

5. Project progress

6. IT initiatives

7. Conclusion

INTRODUCTION• The SETA received a disclaimer audit opinion for the financial year 2011/2012.

• The SETA failed to table it’s annual report by end of August 2012 for same financial year.

• The SETA also failed to submit for approval by the Executive Authority a draft Strategic Plan and Annual

Performance Plan for 2012/2013 by end of August as required.

• The Auditor-General warned (in a letter dated February 2013) that if no intervention was made, another

disclaimer was imminent.

• The SETA was placed under Administration the 20th of March 2013, following these and many other serious

governannce and management failures.

• This means that during the year under review the SETA was under the stewardship of the previous board and

management.

• The Administrator and his team were only at the helm during the period of audit, and oversaw the process of

compiling the annual report.

STRATEGIC OVERVIEW

STRATEGIC OVERVIEW OF LGSETA

The Local Government Sector Education and Training Authority (LGSETA) was established in terms of the Skills

Development Act of 1998, in March 2000 and its license of operation was further extended for a five year period in

March 2005 and will lapse on 31 March 2010. Renewal or extension of the SETA license of operation will be

determined by the Minister of Higher Education and Training in terms of the provisions of the Skills Development Act

of 1998.

In 2009 responsibility for all SETAs was moved from the Department of Labour to the newly established Department of

Higher Education and Training. The LGSETA was recertified by the Minister for the National Skills Development

Strategy lll period (2011-2016). The LGSETA has aligned its contributions to the implementation of National Skills

Development Strategy lll (NSDS lll) primarily to support the achievement of OUTCOME 9 of the Cabinet Programme

of Action, which aims to improve the effectiveness and efficiency of skills development system within the local

government sector. The strategic outcome of the SETA will therefore produce a skilled and capable local government

workforce.

STRATEGIC OVERVIEW OF LGSETA CONTINUED

VISION

• The foremost SETA producing an extraordinarily, skilled and capable local government sector

MISSION

To promote and co-ordinate skills development initiatives and strategic sectoral training interventions, to enhance

efficiency and effectiveness of the local government sector through:

• Conducting sectoral skills planning and research.

• Developing and implementing quality learning programmes and relevant occupational qualifications.

• Monitoring and evaluating the performance of training initiatives.

• Communicating and marketing skills development and career advancement; opportunities.

• The approval and disbursement of skills development grants.

STRATEGIC OVERVIEW OF LGSETA CONTINUED

VALUES

Ubuntu• We embrace the principle of humanness as ingrained in our African culture.

• We adopt the 8 service delivery principles of “Batho Pele”.

Transparency• We commit ourselves to be clear in the pursuit of our mandate and ensure that all our activities, strategies, policies and decisions

are communicated to our stakeholders.

• Sustainability.

• We take cognisance of the effect of global climate change. We thus commit ourselves to conserve the environment for sustainable

development.

Professionalism• We commit to impartiality, fairness, competence and shall exercise diligence in the execution of our duties.

Integrity

We are committed to preserving the good image of the LGSETA by upholding good ethical standards through:

• Avoiding conflict of interest in what we do.

• Safeguarding LGSETA assets.

• Delivering value for money.

• Avoiding self-enrichment.

TERMS OF REFERENCE OF ADMINISTRATOR•Take over the role of the Acounting Authority as provided for in the PFMA.

•Ensure that the LGSETA complies with areas of concern of the Auditor General (AG), and avert another disclaimer.

•Ensure the implementation of NSDS3 within the context of local government and proper management of funds.

•If necessary, establish chambers.

•Review the terms and conditions of employment of the CEO, CFO and other employees of the SETA

•Review the general governance policies.

•Suspend, institute disciplinary proceedings, or replace where necessary any official, for reasons as contemplated in

terms of relevant legislation.

•Consult widely with stakeholders in the sector in order to adopt a standard constitution, and facilitate the appointment

of the new board.

•Although we are here presenting work and performance of the year before administration, we will also account for

what has been achieved since the SETA was placed under Administration, in line with the ToR.

2012 / 2013 FINANCIAL PERFORMANCE

FINANCIAL PERFORMANCE OVERVIEWSKILLS DEVELOPMENT INCOME: SUCCESSIVE YEAR ANALYSIS

Levy income generated continues to rise with the increase in employment statistics of employers. Investment

Income however, reported a steady decrease in comparison to earlier financial years.

FINANCIAL PERFORMANCE OVERVIEW CONTINUED

DISTRIBUTION OF LEVY INCOME – 2012/2013

FINANCIAL PERFORMANCE OVERVIEW CONTINUED

LEVY INCOME: PROVINCIAL ANALYSIS

Levy income reported an overall 8% increase from 2011/2012 to 2012/2013 levy. The usually highest

participating region, Gauteng, reported decreased margins compared to other smaller provinces,

namely, Western Cape, North West, KwaZulu-Natal and the Eastern Cape.

FINANCIAL PERFORMANCE OVERVIEW CONTINUED

MANDATORY GRANTS DISBURSED: PROVINCIAL ANALYSIS

Mandatory Grant participation reported an overall 1% decrease from the 2012 to 2013 levy years.

Numbers still remained high with Gauteng, Western Cape and KwaZulu-Natal reporting the highest statistics.

FINANCIAL PERFORMANCE OVERVIEW CONTINUED

DISTRIBUTION OF BUDGET VS. EXPENSEDISCRETIONARY GRANTS

Discretionary Grant projects were at a minimum in 2012/2013. Many projects that were intended for

engagement did not materialise as SCM processes were hampered in advertising tenders.

FINANCIAL PERFORMANCE OVERVIEW CONTINUED

Mandatory Grant disbursement under performed to budget by R19.9 million in 2012/2013 in comparison to

2011/2012 where disbursements exceeded budget. However the total disbursed in 2012/2013 exceeded

that of 2011/2013, this is due to higher SDL being paid by employers thus an increase in employment statistics.

DISTRIBUTION OF BUDGET VS. EXPENSEMANDATORY GRANTS

DISTRIBUTION OF BUDGET VS. EXPENSEADMINISTRATION

The Administration Programme performed at R3 million less to budget in 2011/2012 but reported a

R9 million under performance target in 2012/2013. This was due to vacant position not being filled

in 2012/2013.

FINANCIAL PERFORMANCE OVERVIEW CONTINUED

SURPLUS FUNDS

2010/2011 realised a deficit, whereas 2011/2012 and 2012/2013 realised surplus funds which were swept to the

discretionary fund reserve of R728 thousand and R62,154 million respectively.

FINANCIAL PERFORMANCE OVERVIEW CONTINUED

ACCUMULATED RESERVES

Accumulated reserves has risen by R49 million since 2009/2010. This is mainly due to a minimum of Discretionary

Grants projects being rolled out in the fiscal year 2012/2013. Committed funds at year end were R153 million.

An application to retain the reserves was instituted in 2013/2014, this application was granted.

FINANCIAL PERFORMANCE OVERVIEW CONTINUED

REMUNERATION OF ACCOUNTING AUTHORITY MEMBERS

NAME OF BOARD MEMBER

REMUNERATEDOTHER RE-

IMBURSEMENTSTOTAL

NO. OF MEETINGS ATTENDED

Mr. Duma Nkosi - 1,011.20 1,011.20 10Mr. Dumisani Mthalane 57,226.00 14,572.52 71,798.52 17Mr. Pat Mbanjwa 102,624.00 9,810.00 112,434.00 24Clr. Speedy Mashilo - 5,224.84 5,224.84 16Ms. Fikile Tshabangu - 2,654.40 2,654.40 6Mr. Rio Nolushungu - 5,629.36 5,629.36 29Clr. Khosi Meth - 4,471.28 4,471.28 2Mr. Moraswi Molepa - 900.00 900.00 3Mr. Willie Kilian - 3,141.05 3,141.05 11Ms. Truida Voigt - 2,091.48 2,091.48 24Ms. Queen Mbatha - 2,310.60 2,310.60 5Mr. Wycliff Mabusela - 8,260.24 8,260.24 4Ms. Emelda Malatji - 29,764.96 29,764.96 9Mr. July Khoza - 20,076.56 20,076.56 16Total 159,850.00 109,918.49 269,768.49 176

FINANCIAL PERFORMANCE: AUDITOR GENERAL REPORT

•In the 2012/2013 financial year, LGSETA received a qualified audit opinion. The basis of opinion was:

•Discretionary Grants Reserve Commitments: The Auditor General (AG) found no proper records and reconciliation were

maintained for Discretionary Grant Reserve Commitments and that the Accounting Authority did not approve

commitments relating to 2012/2013 and prior years.

•Finance has reworked the Commitment Schedule and corrected it accordingly.

•Minutes of the approval of prior year projects have been ratified by the administrator, and current year projects have

been approved.

•System enhancements, system delegations, monthly reviews and approvals will be done to further ensure this item is

not repeated in the current and following years.

•Irregular Expenditure: The Auditor General found irregular expenditure was not properly recorded and thus uncertainty

arose whether all irregular expenditure had been disclosed in the Annual Financial Statements.

•A new procedure has been implemented to monitor and report on irregular expenditure. Prior year’s irregular

expenditure will be restated and a process is underway to report and condone prior year irregular expenditure.

EMPHASIS OF MATTER

Other matters of emphasis were:

• Restatement of figures in the annual financial statements;

• Finalisation of review of schedule of opening balances, has been done and opening balances has been restated.

• Predetermined performance objectives were found to be inconsistent, not specific, not verifiable, not well defined

and unreliable.

• This has been noted and has been addressed in the 2014/15 Strategic plan and APP.

ADDITIONAL MATTERS

Compliance with Laws and Regulations:

• Annual Financial Statements, Performance Report and Annual Report were not prepared in accordance to section 55(1)

(b) of the PFMA.

• Material misstatements were recorded in the Annual Financial Statements.

• Some of these misstatements were corrected, misstatements not corrected at year end were on commitments which

resulted in the qualified opinion.

• An adequate year end plan to submit financial statements with no material misstatements in place.

ADDITIONAL MATTERS CONTINUED

• Non compliance to Treasury Regulation 27.2.1, the Accounting Authority did not approve a risk management strategy

which was included in the fraud prevention plan. This was also not communicated to employees to ensure that all

emerging risks of the entity were identified.

• Full implementation of corrective processes as per risk assessment is underway.

• Procurement Contract and Management, non compliance to Treasury Regulations prescribing 3 price quotations, a

competitive bidding process, adherence to the PPPF, expansion of contracts above 15% of the original contract value, as

well as non compliance with the Income Tax Act by not withholding and paying over 25% to SARS.

• The Supply Chain Management Policy has been finalised and implemented and complies with the relevant legislation.• There were no preventative steps to prevent irregular expenditure and fruitless and wasteful expenditure as required

by the PFMA.• Approval processes are in place to prevent irregular expenditure and fruitless and wasteful expenditure as required by

the PFMA.

INTERNAL CONTROLS

• Leadership:

• Internal controls were not designed an implemented effectively to ensure the leadership function carried out its

duties with honesty, ethical business practices and in the best interest of the entity.

• Financial and performance management:

• Improvements in financial and performance management were not fully realised.

• The review and monitoring controls were not effective in preventing and detecting misstatements in the financial

statements and supporting information disclosures in the financial statements

• Internal control processes have been reviewed and improved to comply with the requirements of the finding.

GOVERNANCE

• Management did not implement appropriate risk management activities to ensure that regular risk assessments,

including consideration of IT and fraud prevention.

• Management has completed a risk assessment process and the internal audit plan has been developed based on the

risk assessment.

• The Accounting Authority, other governance structures and internal audit did not appropriately address identified

internal control deficiencies and non-compliance with laws and regulations reported in the prior year and during the

interim audit.

• The internal audit function was not functional through out the year.

• An adequate risk based internal audit plan is currently being implemented. Certain sections have already been

completed and audit reports submitted to management.

2012/2013 NON-FINANCIAL PERFORMANCE

ETQA, LEARNING PROGRAMMES, SSP

NSDS III

OBJECTIVESSTRATEGIC

OBJECTIVES,

ANNUAL INDICATORS &

TARGETS2012 - 2013

ACHIEVEMENT

SVARIANCE & COMMENTS

4.3 Promoting the growth of a public FET College system that is responsive to sector, local, regional & national skills needs and priorities( includes workplace/ municipal training centres in lg sector)

FETs supported & accredited

5 FET colleges 7 colleges +2

Workplace/ municipal training centres accredited

5 workplace/ municipal training centres

6 municipal training centres

+1 increased demand for workplace competencies

( NSDS 2)Improving the quality and relevance of provisionTo design qualifications, accredit training providers, monitor the provision of training by training providers, and conduct quality assurance on learner achievements

Design local government qualifications

12 policies adopted by the Board

10 reviewed & endorsed

As per QCTO performance audit

10 occupational qualifications developed and registered

1 qualification approved by QCTO

- 9The process of

qualification development takes long, as a result we have not progressed as far as envisaged

10 SLAs signed with QCTO as DQP and AQP

4 signed -6 5th qualification in the process of SLA sign off. QCTO processes are slow

PROGRAMME 1: ETQA

PROGRAMME 1: ETQA CONTINUEDNSDS III

OBJECTIVES

STRATEGIC OBJECTIVES,

ANNUAL INDICATORS & TARGETS 2012 - 2013

ACHIEVEMENTS

VARIANCE & COMMENTS

( NSDS 2)Improving the quality and relevance of provision To design qualifications, accredit training providers, monitor the provision of training by training providers, and conduct quality assurance on learner achievements

Accredit training providers for local government qualifications

60 programme evaluations of current qualifications conducted

110 programmes conducted

+50 High demand from training providers to offer training within Local Government

200 providers accredited 200 providers accredited

No variance

30 SLA signed with assessment centres to quality assure trade & occupational qualifications

0 – function now assigned to NAMB – no longer SETA responsibility

No variance

( NSDS 2)Improving the quality and relevance of provisionTo design qualifications, accredit training providers, monitor the provision of training by training providers, and conduct quality assurance on learner achievements

Monitor the provision of training on local government qualifications by accredited training providers

120 providers monitored & evaluated

250 providers + 130 providersGreater emphasis on the quality of training provision.

To conduct quality assurance on learner achievements for local government qualifications

20 000 learner achievements quality assured

18 000 learners - 2 000 As per NLRD records

To implement RPL to accelerate skills in scarce and critical skills areas

250 learners certified through RPL in scarce & critical skills

150 municipal finance learners215 water learners

+ 115 Demand for RPL in the sectorAs per MIS learner records

PROGRAMME 2: LEARNING PROGRAMMESNSDS III OBJECTIVES

STRATEGIC OBJECTIVES, ANNUAL INDICATORS & TARGETS 2012 - 2013

ACHIEVEMENTS VARIANCE & COMMENTS

Increasing access to occupationally directed programmes

Facilitate training implementation in scarce and critical skills area

125 bursaries allocated in scarce and critical skills viz. engineering, urban planning, ichthyology, property valuation, HR

321 bursaries +196 bursariesIncreased emphasis on professionalization within local government

100 interns placed in municipalities from public FET colleges and universities

344 interns + 244 Demonstrates a greater capacity among municipalities for absorbing interns as per NSDS 3 objectives

Bursaries allocated in scarce and critical skills viz. Engineering, Urban Planning, ichthyology, property valuation, HR

125 321 +196Increased emphasis on professionalization within local government

Place interns from public FET colleges and universities in municipalities

100 interns 344 interns + 244 Demonstrates a greater capacity among municipalities for placing interns to gain workplace experience as per NSDS III objectives

PROGRAMME 2: LEARNING PROGRAMMES CONTINUED

NSDS III OBJECTIVES

STRATEGIC OBJECTIVES,

ANNUAL INDICATORS &

TARGETS2012 - 2013

ACHIEVEMENTS

VARIANCE & COMMENTS

4.2 Increasing access to occupationally directed programmes

Learners trained in housing and other policy development implementation programmes such as Governance and Municipal Leadership Certification

300 291 -9 Housing project could not commence due to the need to re-advertise the tender

Learners Trained in Planning Programmes viz. IDP and LED training

150 307 +157 Increased demand for workplace competencies

Learners trained in artisanal and technical related programmes

300 learners trained in in artisanal and technical related programmes

300 Artisan learners registered, 264 certificated, 1463 certificated in water learnerships

+ 1427 High numbers due to completion of water learnership programme.

Unemployed youth trained in critical skills in Municipalities viz. Emergency and disaster management

300 308 Municipalities committed to develop skills amongst youth to gain labour market access.

PROGRAMME 2: LEARNING PROGRAMMES CONTINUED

NSDS III

OBJECTIVES STRATEGIC OBJECTIVES,

ANNUAL INDICATORS &

TARGETS2012 - 2013

ACHIEVEMENTS

VARIANCE & COMMENTS

4.2 Increasing access to occupationally directed programmes

Learners trained in Municipal Finance Learnerships and Certificate programme

500 709 learners entered and completed finance learning programmes

+ 209 Compliance with National Treasury minimum competency prior to deadline.

Workplace approved for implementation of programmes

20 58 + 38 Municipalities keen to participate in workplace training.

Learners trained on Adult Education, Foundational learning and skills development programmes NQF2

500 350 learners registered in Adult Basic Education

- 150 learners uptake of adult literacy programmes limited due to workplace demands and learner time.

LEARNING PROGRAMMES

Performance against SLA target with The table below illustrates targets for 2012/13 as well as performance against targets

2012/13

Target Actual

Learnerships Workers Entered 300 1119

Learnerships Workers Certificated 200 1302Learnerships Unemployed Entered 300 364

Learnerships Unemployed Certificated 200 72Bursaries Workers Entered 100 321Bursaries Workers Certificated 50 6

Bursaries Unemployed Entered 25 127Bursaries Unemployed Certificated 10

Skills Programmes Workers Entered 700 1110Skills Programmes Workers Certificated 400 6165

Skills Programmes Unemployed Entered 300 1118 Skills Programmes Unemployed certificated 250 81

Internships Unemployed Entered 100 344Internships Unemployed Certificated 50 27 Artisan Entered 400 300

Artisan Certificated 150 264

PROGRAMME 3: SECTOR SKILLS PLANNING

NSDS III

OBJECTIVES STRATEGIC OBJECTIVES, ANNUAL INDICATORS &

TARGETS2012 - 2013

ACHIEVEMENTS VARIANCE & COMMENTS

Establishing a credible institutional mechanism for skills planning

Conduct research, document and communicate labour market skills information to the local government sector

3 x research papers / projects 1 x consulted & approved SSP annual update

2 x research papers1 x consulted & approved SSP annual update 1 x research project

No variance

Credible workplace skills plan and annual training report system developed and implemented for the local government sector

250 workplace skills plans submitted, evaluated and eligible for payment

264 approved submissions

+ 14 submissions –greater that the expected compliance among municipalities re requirements of SDA and SLA

Establishing a credible institutional mechanism for skills planning

Effective & efficient performance information monitoring and reporting system

720 performance monitoring visits to municipalities by provincial offices

60 visits -660 visitsSignificantly less monitoring visits conducted. Provinces to emphasise monitoring in future

PROGRAMME 3: SECTOR SKILLS PLANNING CONTINUED

NSDS III

OBJECTIVES STRATEGIC OBJECTIVES,

ANNUAL INDICATORS &

TARGETS2012 - 2013

ACHIEVEMENTS VARIANCE & COMMENTS

Institutional skills development mechanisms supported in the local government sector

154 SDFs @ Forums/ LLF /skills dev comm. training interventions

565 SDFs @ forums + 215 SDFsHigh levels of participation by SDFs and stakeholders at provincial level

Establishing a credible institutional mechanism

Communicate sector skills needs

1 x scarce skills guide produced

1 x guide produced Document researched & produced

Strategies/ policies approved in support of NSDS 3 & LGTAS

1 x Sector skills plan research process/policy1 x grant policy

1 x SSP process approvedGrant policy developed

2012/2013 NON-FINANCIAL PERFORMANCE

HUMAN RESOURCES

BACKGROUNDWhen Administrator assumed his new role, he commissioned a formal diagnostic exercise and the findings confirmed

the following:

•Risk exposure due to non-compliance with the South African regulatory environment and related stipulations.

•Human capacity challenges in terms of a shortage of resources in critical areas.

•Misalignment of operational structure to the organisational mandate.

•A perceived lack of critical institutional infrastructure systems, policies and processes.

• Existence of a crippling silo mentality exacerbated by lack of credible managements systems to integrate an

organisation with a national footprint such as the LGSETA is.

• An inherent leadership vacuum.

•A persistent organisational culture that does not foster good organisational values.

PERSONNEL COSTS PER PROGRAMME

PROGRAMME TOTAL EXP FOR THE ENTITY(R’000)

PERSONNEL EXP(R’000)

PERSONNEL EXP AS A % OF TOTAL

EXPENSES(R’000)

NO. OF EMPLOYEES

AVERAGE PERSONNEL COST

PER EMPLOYEE(R’000)

CEO R2,768 R1,474 53% 2 R737

SSP R3,693 R2,931 79% 6 R488

Learning Programmes R2,390 R1,037 43% 5 R207

ETQA R3,456 R2,444 71% 8 R306

HR and Communications R9,020 R1 340 15% 12 R117

Finance & IT R7,925 R2,137 27% 11 R194

Provincial R11,997 R8,866 74% 30 R296

PERSONNEL COSTS BY SALARY BAND

LEVEL PERSONNEL EXPENDITURE

(R'000)

% OF PERSONNEL EXPENDITURE TO TOTAL PERSONNEL COST

(R'000)

NO. OF EMPLOYEES

AVERAGE PERSONNEL COST PER EMPLOYEE (R'000)

YEAR 2012/13 2012/13 2012/13 2012/13

Top Management R1,121 5.54% 1 R1,121

Senior Management R6,216 30.73% 9 R691

Professional Qualified R8,374 41.39% 22 R381

Skilled R3,450 17.05% 22 R157

Semi-skilled R870 4.30% 15 R58

Unskilled R196 0.97% 5 R39

Total R20,228 100% 74 R273

EMPLOYMENT AND VACANCIESThe current organisational structure is outdated and misaligned to the organisational mandate. Since 2010, the organisation

has been going through a reorganisation process which had still not been finalised as at the end of the year in review. As a

result, there was a moratorium placed on all recruitment until November 2012 when the Board directed that limited

duration contractors should be appointed to create capacity. Contractors were appointed outside of the approved

structure.

PROGRAMME

2011/2012NO. OF

EMPLOYEES

2012/2013APPROVED

POSTS

2012/2013 CONTRACT EMPLOYEES

2012/2013 TERMINATIONS

2012/2013NO. OF

EMPLOYEES

2012/2013 VACANCIES

% OF VACANCIES

CEO 2 Nil Nil Nil 2 Nil Nil

ETQA 6 Nil 2 (1) 7 Nil Nil

Finance & IT 5 Nil 7 Nil 12 Nil Nil

Provincial 29 Nil 2 (4) 27 Nil Nil

HR & Communications

5Nil

6 Nil11 Nil Nil

Learning Programmes

4Nil

1 Nil5 Nil Nil

SSP 6 Nil Nil Nil 6 Nil NilTotal 57 Nil 18 (5) 70 Nil Nil

EMPLOYMENT CHANGES

The list includes all staff movement including positions that were additional to the establishment but excluded the

interns*

SALARY BANDSEMPLOYMENT AT THE BEGINNING OF PERIOD

APPOINTMENTS TERMINATIONSEMPLOYMENT AT THE END OF THE

PERIOD

Top Management 1 NilNil

1

Senior Management 8 NilNil

8

Professional Qualified 21 3(3)

21

Skilled 17 13(2)

28

Semi-skilled 6 1Nil

7

Unskilled 4 1Nil

5

Total 57 18(5)

70

EMPLOYEE RELATIONS 2012/13

REASON NUMBER % TOTAL NO. OF EMPLOYEES LEAVING

Death Nil 0%

Resignation 4 80%

Dismissal 1 20%

Retirement Nil 0%

Ill Health Nil 0%

Expiry of Contract Nil 0%

Other Nil 0%

Total 5

REASON DEATH RESIGNATION DISMISSAL RETIREMENT ILL-HEALTHCONTRACT

EXPIREDOTHER

Top ManagementNil 1 Nil Nil Nil Nil Nil

Senior Management

1 4 Nil Nil Nil Nil Nil

Professional QualifiedNil 3 Nil Nil Nil Nil Nil

Skilled

Nil 3 Nil 1 Nil 4 Nil

Semi-skilledNil 1 Nil Nil Nil 1 Nil

Unskilled

Nil Nil Nil Nil Nil Nil Nil

Total 1 12 Nil 1 Nil 5 Nil

EMPLOYEE RELATIONS 2013/14

EMPLOYEE RELATIONS: ONGOING DISCIPLINARY MATTERS

• Disciplinary action initiated against the CEO – Resigned amid proceedings.

• Total of four (4) staff members:

•1 Provincial Manager

•1 Supply Chain Officer

•1 Communications Officer

•1 Communications Administrator

HUMAN RESOURCES TURNAROUND STRATEGY: PRIORITY FOCUS AREAS

INFORMATION & COMMUNICATION TECHNOLOGY

ICT STRATEGIC GOAL

•In the 2012/2013 financial year, LGSETA committed to ensuring a sound and prudent financial and information

management systems.

•This goal aimed to achieve the following:

• To meet legal and best practice management of finance and the organisation’s information and data.

• To ensure that the organisation has a reliable and credible financial and information management system

to achieve it mandate.

• To maintain LG SETA’s visibility within the Local Government and all related sectors.

•To implementation an information systems that is cutting edge to enable a LGSETA that is prudent in producing a skilled

and capable local government sector.

ICT GOVERNANCE•In the 2012/2013 financial year, LGSETA received a qualified audit opinion. The basis of opinion was:

• Financial and Performance Management: The Auditor General found that designed ICT controls were not

implemented to ensure that the financial and performance report was supported by accurate, complete and

reliable information.

• Governance : The Auditor General found that appropriate ICT risk management activities were not conducted and

that an ICT Risk Strategy that is aligned to the organisation Risk Strategy was not developed and ICT Risk not

monitored.

•Implementation of the DPSA CGICT Policy Framework Phase I

•Deliverables of CGICT Policy Framework are:

• Risk Management Policy

• ICT Internal Audit Plan

• Information Plan and ICT Security Policy

• Business Continuity Plan (BCP)

• Change Management Plan

ICT ADDITIONAL MATTERS

Other matters of emphasis were:

• An IT strategic plan was not designed to support the strategic objectives of the organisation;

• A new ICT strategic plan is under development.

• Unapproved Information and Technology Governance Framework

• LGSETA has adopted the DPSA CGICT Policy framework.

OTHER ICT INITIATIVES• Redeployment of the LG SETA MIS and integration with the ERP system

• Redeployment and stabilisation.

• Interfacing of the LG SETA MIS with the Financial Management System.

• Upgrade of the ERP system

• Upgrade and integration of Great Plains and MIS.

• ICT Infrastructure Upgrade for Head Office, provincial and satellite offices

• Upgrade WAN link for improved connectivity .

• Server and Network Infrastructure upgrade.

• Business support services project – Printing, IP Telephony and Intranet.

• Deployment of the Supply Chain Vendor Management System .

PROJECTS

PROJECT PROGRESSThe following projects were initiated during this reporting period, and the progress is as follows:

•Ministerial flagship projects

• Work integrated learning (WIL)

• Rural projects

•Learning programmes

•National projects

• Stakeholder capacity building

• Grants to non-levy paying institutions

• Bursaries

• WSP season launch

• Corporate projects

• Establishment of PMU

• New office space

CONCLUSION

CONCLUSION•Local government is an important sphere of our system of governance, and it continues to face many challenges, many of which are related to

skill development

•The LGSETA has gone through a difficult period in the recent past, which saw it fail to play the role it is support of local government

•Great strides have been made to restore the SETA back to a state of good governance and proper financial management

•Much more remains to be done to achieve the ambitious objectives that have been set.

•The SETA will indeed be transformed into a model SETA characterised by excellence

•The Administrator is grateful for the support and guidance from the DG and his team, and we look forward to a better report being presented

before the committee, following the current financial year during which the Administrator was at the helm.