Annual Performance Plan 2016/17

Transcription

1 Annual Performance Plan 2016/17 Draft Annual Performance Plan PIs & Targets 1

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3 Official sign-off It is hereby certified that this Annual Performance Plan: was developed by the management of the Services SETA in consultation with the Department of Higher Education and Training was informed by the revised Services SETA Strategic Plan for the period 2011/ /19 (7 years), exended as per NSDS III extension accurately reflects the performance targets which the Services SETA will endeavour to achieve within available funding for the 2016/17 financial year Tsiliso Tamasane Manager: Skills and Strategic Planning Signature: Date: Andile Nongogo Chief Financial Officer Signature: Date: Liesel Kӧstlich Acting Chief Executive Officer Signature: Date: Themba Mhambi Chairperson of Accounting Authority Signature: Date: For more information, please contact: Services SETA PO Box 3344 Houghton 2041 South Africa Tel: ISBN: Services SETA annual performance plan 2016/17 i

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5 Foreword This Annual Performance Plan is aligned to the updated Strategic Plan submitted for 2016/17 which as per the extension of NDSD III is updated to 7 years from 2011/12 to 2018/19. This review sought to reduce the number of Strategic Objectives and associated Strategic Risks, and to strengthen alignment between Strategic Goals and Strategic Objectives. Continuous improvement is being made in aligning outcomes and targets to the Sector Skills Plan findings of Scarce and Critical Skills and identified Pivotal Skills. The Services SETA having obtained a Clean Audit for the 2014/15 financial year, has paid particular focus to maintaining this achievement through further strengthening of internal controls and human resources capacity. Efforts have been made to minimise changes to performance indicators and eliminate operational indicators where possible. The need to balance outcome indicators with the Department of Higher Education and Training s SLA outputs remains a challenge in trying to reduce the number of performance indicators and shift towards targeted levels of planning maturity. Improvements in the application of cumulative versus non-cumulative indicators have achieved further improvement in planning and reporting year-to-date achievements by design automatically rolling over targets and achievements each quarter. This will enable a more accurate monitoring and reporting of organisational performance throughout the year. Further improvements to Technical Indicator Descriptions have also been achieved. The Services SETA has not established Industry targets for learning interventions as this falls outside of its control. Notwithstanding, the SETA recognises that it should play an important role in mobilising and facilitating industry investments in skills development incentivised through tax rebates, levy reimbursements and the BBBEE scorecard. Reporting on such investments as a minimum through Mandatory Grant submissions will be improved and prioritised. This Plan was the produce of consultation with the Accounting Authority and Management 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 Annual Performance Plan 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 2016/17 ii

6 Table of Contents Foreword... ii TABLE OF CONTENTS... iii LIST OF ACRONYMS... v Part A: Strategic Overview UPDATED SITUATIONAL ANALYSIS Performance delivery environment Organisational environment REVISIONS TO LEGISLATIVE AND OTHER MANDATES OVERVIEW OF THE BUDGET AND MTEF ESTIMATES Legislative Mandate / /20 MTEF budget overview Levies Investment Income Administration Expenditure Mandatory Grants Discretionary Grants Capital Expenditure Capital Expenditure Conclusion Income and Expenditure estimates Part B: Programmes PROGRAMME 1: ADMINISTRATION Purpose Description of the programme Strategic Objectives Programme performance indicators and annual targets for 2016/ Programme performance indicators and quarterly targets for 2016/ Reconciling performance targets with the Budget and MTEF PROGRAMME 2: GOVERNANCE Purpose Description of the programme Strategic Objectives Programme performance indicators and annual targets for 2016/ Services SETA annual performance plan 2016/17 iii

7 5.5 Programme performance indicators and quarterly targets for 2016/ Reconciling performance targets with the Budget and MTEF PROGRAMME 3: PLANNING Purpose Description of the programme Strategic Objectives Programme performance indicators and annual targets for 2016/ Programme performance indicators and quarterly targets for 2016/ Reconciling performance targets with the Budget and MTEF PROGRAMME 4: SKILLS DEVELOPMENT Purpose Description of the programme Strategic Objectives Programme performance indicators and annual targets for 2016/ Programme performance indicators and quarterly targets for 2016/ Reconciling performance targets with the Budget and MTEF ANNEXURE A: MATERIALITY AND SIGNIFICANCE FRAMEWORK ANNEXURE B: SERVICE LEVEL AGREEMENT ANNEXURE C: DISCRETIONARY GRANT PIVOTAL LEARNING INTERVENTION SCENARIOS ANNEXURE D: APP TECHNICAL DESCRIPTIONS Services SETA annual performance plan 2016/17 iv

8 LIST OF ACRONYMS AET AFS APP APR ATR CEO CPD DHET DG ETQA HET HR HRD LPE MTEF MTSF NCV NEET NLPE NQF NSA NSDS QCTO RPL SDA SDLA SETA SIC SIPS SLA SME SMME SP 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 Higher Education and Training Human Resources Human Resource Development 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- and Micro-sized Enterprises Small- Medium- and Micro-sized Enterprises Strategic Plan Sector Skills Plan Technical Vocational Education and Training (Formerly FET Colleges) Workplace Skills Plan Work Integrated Learning Services SETA annual performance plan 2016/17 v

9 Part A: Strategic Overview 1. UPDATED SITUATIONAL ANALYSIS 1.1 Performance delivery environment According to the Sector Skills Plan (2016), some 163,000 employers are classified under the Services Sector. About 90% employers are small that is, they employ less than 50 employees. A total of 28% are levy paying employers. The 70 standard industrial classification codes (SIC Codes) falling within the scope of the Services Sector, as per Ministerial demarcation, are clustered into 16 subsectors 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% Communication and Marketing 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 substantial 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 10 scarce skills for which degrees/diplomas and skills programmes are most applicable. In addition, 10 PIVOTAL programmes have been identified as a vehicle to implement scarce skills. 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 Annual Performance 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 2016/17 1

10 1.2 Organisational environment Following the appointment of the Accounting Authority in July 2013, there is a strong sense of stability at the Services SETA. This is strengthened by the established of functionality of its standing committees. There are 12 Committees in total (Executive Committee; Audit Committee; Governance, Risk and Strategy Committee; Finance Committee; HR and Remuneration Committee; Cleaning and Hiring Services Chamber; Communication and Marketing Services Chamber; Labour and Collective Services Chamber; Management and Business Services Chamber; Personal Care Services Chamber and, Real Estate and Related Services Chamber). The rate of attendance at scheduled Accounting Authority meetings demonstrates the high-level of participation and commitment. In 2014/15 financial year, the Services SETA placed greater emphasis on the human dimension of the organisation. Staff members were exposed and subjected to a strict risk mitigation and performance management regime. All employees signed performance agreements aligned to organisational objectives in order to ensure effective utilisation of resources. The Services SETA staff complement comprised 225 out of 318 employees as at submission on 13 November 2015 with 93 posts being vacant. Recruitment is already underway for several of these posts. As a direct result of the focus on the human dimension explained above, the performance of the Services SETA against predetermined targets increased significantly between 2013/14 and 2014/15. As at mid-2015/16 learner enrolments over 6 months far exceeds that of the 2014/15 financial year. 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 forthcoming 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. Services SETA annual performance plan 2016/17 2

11 The National Youth Accord was signed in This makes a specific commitment to youth development, and is reflected in the youth development priorities and targets in the APP. The Medium-Term Strategic Framework has been updated from the MTSF , to the new MTSF The goals and purposes of the new MTSF have been included in the SP and are reflected also in the APP. There has been substantial progress in planning the Strategic Integrated Projects key to the New Growth Path. Services SETA supports this presidential initiative and the APP continues to make provision for measuring funded learners enrolleed in SIPS aligned scarce occpuations. Skills development legislation and policy The National Skills Development Strategy III was extended by a two-year period ending 31 March Consideration of possible and emerging future priorities has influenced this APP namely: 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 the improtance of expanding stakeholder engagmeent and participation at national, provincial and sub-sector levels. 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. Progress on interseta colloboration has been achieved as reflect on in the SSP and SP and will be progressed in the forthcoming financial year. A centralisation of the quality assurance system under the QCTO has been underway for some time. The Services SETA Quality Management 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 stakeholders. Significant improvement has already been achieved in the latter but continuous improvement will be rigourourly persued. Other laws and regulations These are laws and regulations affecting the state more widely (including SETAs), such as the PFMA, PAIA and PAJA. These fall within organisational compliance and legal services and as such measure are provided for in the APP. Services SETA annual performance plan 2016/17 3

12 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 2016/17 4

13 3 OVERVIEW OF THE BUDGET AND MTEF ESTIMATES 3.1 Legislative Mandate The 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. In April 2011, the Minister of Higher Education and Training extended the licences of the SETAs for an additional period of five years expiring on 31 March As per Government Gazette number which was published on 6 October 2015, the Minister re-established the SETAs for an additional two years until 31 March The Estimates of National Expenditure 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 / /20 MTEF budget overview There were significant regulatory changes over the MTEF period. Whilst the recent Labour Court judgement sought to set aside the breakdown of the skills development levies as per the Grant Regulations introduced on 01 April 2013, with effect from 01 April 2016, the Minister of Higher Education and Training has appealed the judgement. As a result, the status quo remains that is Scenario A: Grant Regulations as per the table below. LEVY INCOME Scenario A: Grant Regulations Scenario B: Labour Court Judgement Administration 10.5% 10% Mandatory 20% 50% Discretionary 49.5% 20% Allocation to SETAs 80% 80% National Skills Funds 20% 20% Total 100% 100% Services SETA annual performance plan 2016/17 5

14 3.2.1 Levies 2015/2016 budget revision The forecast for 2015/16 was prepared taking into account the average of the past 12 months ending September 2015 levy income and extrapolating for the remaining seven months of the current financial year. It is projected that levy income will total R1.451 billion which represents a R86.5 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. 2016/2017 budget The levy income for 2016/17 is expected to increase by 6%, which is the salary increase as per the ENE guidelines, which will result in levy income totalling R1.541 billion. Inter-SETA Transfers-In and Inter-SETA Transfers-Out were considered and have no impact on the levies for the remainder of the year. Revenue Administration income Mandatory Grants income Discretionary Grants income Total Skills Levies Original budget 2015/16 Adjusted Appropriation 2015/16 Variance 2015/16 Grant Regulations 2016/17 Labour Court Judgement 2016/17 Rand Increase (Decrease) R179,096,840 R190,450,065 R11,353,225 R202,257,969 R192,626,637 -R9,631,332 R341,136,838 R362,762,029 R21,625,191 R385,253,274 R963,133,186 R577,879,912 R844,313,673 R897,836,021 R53,522,348 R953,501,854 R385,253,274 -R568,248,580 R1,364,547,351 R1,451,048,115 R86,500,764 R1,541,013,098 R1,541,013, Investment Income 2015/2016 budget revision Interest income is estimated to increase by 40% from budget of R83.78 million which results in a projected interest income of R117 million. The projected interest income is significantly lower than the prior year actual interest income of R131 million due to an anticipated improvement in the disbursements of grants as a result of construction of the Motheo Artisan Development Academy and a general improvement in disbursements of grants as the SETA had commitments amounting to R1.8 billion as at 31 March /2017 budget The budget for 2016/17 is estimated to be R117 million taking into account the fact that there will be routine disbursements of grants due to an improvement in disbursements. Services SETA annual performance plan 2016/17 6

15 3.3 Administration Expenditure Revised Administration Budget (2015/16) The revised budget for the year has decreased by R6.8 million when compared to the original budget of 2015/16, which amounted to R172 million. Project related administration costs were initially budgeted for under the administration budget. Given that the discretionary grants policy allows for project related administration costs to be charged to the discretionary grants administration budget, there has been a reclassification of some costs from the administration budget to the discretionary grants admin budget. The reclassification has resulted in a significant decrease in staff budget, subsistence and travelling as well as venue hire and catering costs R4.9 million and R13.2 million, inter alia. These savings were countered by an increase in repairs and maintenance as a result of the refurbishment of the head office. While the SETA endeavours to reduce reliance on the use of consultants, there are certain specialised fields that the SETA needs assistance on to be able to achieve its objectives. The interventions which have been provided for include a service provider that will support of the HR department (R4.9 million), a service provider to assist with the compliance to the BBBEE legislation (R1.8 million) and the appointment of a service provider to conduct research for input into the forthcoming SSP, APP and SP (R2 million). Administration Budget (2016/17) The administration costs budget for 2016/17 amounts to R154 million, which represents a significant reduction of R17.5 million when compared to the revised budget of 2015/16. The decrease is mainly attributable to the reduction in the budget for consultation R25 million and information technology budget R3.9 million Mandatory Grants Revised budget 2015/16 vs Original Budget 2015/16 The claim rate for the first six months of the year was 52% compared to the budgeted claim rate of 75%. It is anticipated that the claim rate for the remainder of the financial year will stay constant at 52% as the WSP/ATR listing has been finalised. Although the number of companies that submitted WSPs has increased by 16% to 3,650, the revised budget is expected to decrease from a budgeted R255 million to a revised budget of R188 million. The SETA continues to conduct roadshows to encourage companies to comply with grant regulations which will lead to a higher claim rate. Budget 2016/17 vs Revised budget 2015/16 The budget for mandatory grants disbursements has increased by R389 million to R579 million as a result of the court ruling that SETAs must utilise 50% for paying back mandatory grants to companies instead of 20% as applied in the Revised Budget for 2015/16 Services SETA annual performance plan 2016/17 7

16 3.3.2 Discretionary Grants Revised budget 2015/16 vs Original Budget 2015/16 The Services SETA committed R1.836 billion as at 31 March In the current financial year R180 million has been set aside for nine Skills Development centres which will be built in the provinces. Construction of the North West Motheo Artisan Development College has already commenced. In addition a service provider has been appointed to establish and support co-operatives at a cost of R46 million. During the current financial year 47,707 learners will be supported at an average cost of R16, 685 per learner totalling R796 million. In addition project related administration costs amount to R157 million which includes project labour costs (R70 million), project studies (R8 million), project legal fees (R7 million), forensic audit for mandatory grants (R28 million). Budget 2016/17 vs Revised budget 2015/16 The budget for discretionary grants is based on the ruling of the court which requires that 20% be utilised instead of the 49.5% apportionment that was used in the previous financial year. There is a slight increase in the discretionary grants budget of R76 million when compared to the revised budget for 2015/16. During the 2016/17 financial year 47,000 learners will be supported at an average rate of R18, 992 per learner. Although the discretionary grant levy income/allocation for the year has declined, the expenditure has increased significantly which indicates that the commitments are being reduced. Refer to table below. 2015/ /17 Opening balance reserves R1,365,388,000 R1,450,947,495 Discretionary Grants R897,836,021 R953,501,854 Unclaimed Mandatory Grants R174,125,774 R154,101,310 Investment Income R117,141,147 R117,620,706 Discretionary Funds Available R2,554,490,942 R2,676,171,365 Year-To-Date Actual Spend R165,642,001 Forecast Spending R937,901,446 R1,031,048,850 Reserves For the Year R1,450,947,495 R1,645,122,515 Commitments as at 31 March R1,450,947,495 R1,645,122, Capital Expenditure Capital Expenditure Capital budget includes the following: 2015/ /17 ERP System(AX) R7,872,201 Office Furniture and Equipment R6000,000 R105,000 Motor Vehicles R4,842,488 IT Hardware and software R2,739,539 Learner attendance monitoring system(dg) R8,407,500 Laptops and desktops 629, ,000 Document Management System R8,000,000 Management Information System R15,000,000 Provincial offices refurbishments and acquisitions 20,000,0000 TOTAL R30,490,894 R43,860,000 Services SETA annual performance plan 2016/17 8

17 3.3.4 Conclusion We look forward for the approval of the budget which will enable us to fulfil our mandate of skilling and up-skilling the services sector. Services SETA annual performance plan 2016/17 9

18 3.4 Income and Expenditure estimates Table 1 Services SETA Income and Expenditure Income by economic classification Income outcome Adjusted Appropriation Medium-term income estimate R thousand 2013/ / / / / /18 Levies Received R R R R R R Levies Received: Administration 10.5% R R R R R R Levies Received: Mandatory Grants 20% R R R R R R Levies Received: Discretionary Grants 49.5% R R R R R R Other Income R R R R R R Penalties and Interest on Levies R R R 0 R 0 Investment Income R R R R R R Other Income R 32 R 33 R 0 R 0 Surplus prior year FY 2013 Surplus prior year FY 2012 TOTAL INCOME R R R R R R Income by Programmes Income outcome Adjusted Appropriation Medium-term income estimate R thousand 2013/ / / / / /18 1. Administration R R R R R R Governance R 0 R R R R Planning R 0 R R R R Skills Development R R R R R R TOTAL R R R R R R Services SETA annual performance plan 2016/17 10

19 All programmes by economic classification Expenditure outcome Adjusted Appropriation Medium-term expenditure estimate R thousand 2013/ / / / / /18 Administrative expenses R R R R R R Compensation of employees R R R R R R Goods and services of which: R R R R R R Advertising R R R R R R Audit Fees R R R R R R Communication R R R R R R Computer services R R R R R R Consultants, contractors and special services R R R R R R Governance Fees R R R R R R Maintenance repair and running cost R R R R R R Depreciation R R R R R R Travel and subsistence R R R R R R Staff training, recruitment and assistance R R R R R R QCTO R R R R R R Office Accommodation R 136 R R R R R Mandatory Grants - Transfers and subsidies to: R R R R R R Provinces Agencies and accounts Universities and technikons Public corporations and private enterprises R R R R R R Foreign governments and international organisations Non-profit institutions Households Services SETA annual performance plan 2016/17 11

20 Discretionary Grants - Transfers and subsidies to: R R R R R R Provinces Agencies and accounts R R Universities and technikons Public corporations and private enterprises R R R R R R Foreign governments and international organisations Non-profit institutions Households Total expenditure R R R R R R Net surplus (deficit 1 )) -R R R R R R Payments for capital assets 2 : Buildings and other fixed structures R 73 R R R 110 R 110 Machinery and equipment R R 500 R 105 R 50 R 50 Computer equipment R R 425 R 629 R 755 R 100 R 100 Software and other intangible assets R R R R Motor vehicle R Total Capital expenditure R R 998 R R R R Expenditure by Programmes Expenditure outcome Adjusted Appropriation Medium-term expenditure estimate R thousand 2013/ / / / / /18 1. Administration R R R R R R Governance R R R R Planning R R R R Skills Development R R R R R R TOTAL R R R R R R The deficit arises because of disbursements of prior year's commitments. 2 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 2016/17 12

21 Part B: Programmes The Services SETA has 4 programmes each comprising strategic objectives, programme performance indicators and corresponding targets. The table below shows the alignment between the strategic goals and strategic objectives. Predominant Strategic Goal Programme # 4. Strengthen Services SETA capability to lead the sector and compliance with governance imperatives 4. Strengthen Services SETA capability to lead the sector and compliance with governance imperatives 4. Strengthen Services SETA capability to lead the sector and compliance with governance imperatives 1. Improve the skills and capabilities of the services sector workforce 3. Improve services sector capability to implement responses to sector skills needs 2. Improve the flow of skills into the services sector 3. Improve services sector capability to implement responses to sector skills needs 1. Improve the skills and capabilities of the services sector workforce 2. Improve the flow of skills into the services sector 1. Improve the skills and capabilities of the services sector workforce 1. Improve the skills and capabilities of the services sector workforce 1. Improve the skills and capabilities of the services sector workforce 1: Administration Finance 1: Administration : Governance Strategic Objective Title People, systems and communication Organisational Governance 2: Governance Special Projects 3: Planning Sector Skills Planning 3: Planning Organisational Performance 4: Skills Development Industry investment 4: Skills Development Services SETA investment 4: Skills Development Quality Assurance Strategic Objective Statement Financial affairs of the Services SETA are managed in a transparent, efficient and effective manner to maintain clean audit People and systems deployed to leverage technology and enabling effective communication Accountable governance and oversight leadership focussed on high performance, compliance, internal controls and enterprise-wide risk mitigation Transformational imperatives and national priorities promoted through partnership development and targeted intervention Credible and evidence-based research and policy informs organisational planning ensuring appropriate and relevant alignment between supply and demand in the Services Sector Accurate reporting of organisational performance and, utilisation and assessment of results to inform programme improvement and service delivery priorities Increase industry investments in Post-School Education and Training Increase learner enrolments and completions through effective coordination and implementation of learning interventions Assure adequacy and quality of learning provision for successful completion of learner achievements Services SETA annual performance plan 2016/17 13

22 Predominant Strategic Goal Programme # 2. Improve the flow of skills into the services sector 2. Improve the flow of skills into the services sector 3. Improve services sector capability to implement responses to sector skills needs Strategic Objective Title 4: Skills Development Stakeholder support Strategic Objective Statement Increase stakeholder participation and access to service delivery through capacitation across subsectors and provinces Services SETA annual performance plan 2016/17 14

23 4 PROGRAMME 1: ADMINISTRATION 4.1 Purpose The purpose of the administration programme is to enable the delivery of the Services SETA Mandate through the delivery of support services. This programme is aligned to Strategic Goals 4: Strengthen Services SETA capability to lead the sector and compliance with governance imperatives. 4.2 Description of the programme The programme comprises of Finance, Human Resources, Information Communication and Technology. 4.3 Strategic Objectives # Strategic Objective Title Strategic Objective Statement Finance Financial affairs of the Services SETA are managed in a transparent, efficient and effective manner to maintain clean audit People, systems and communication People and systems deployed to leverage technology and enable effective communication Services SETA annual performance plan 2016/17 15

24 4.4 Programme performance indicators and annual targets for 2016/17 TITLE STATEMENT STRATEGIC ACTIVITY # Finance Financial affairs of the Services SETA are managed in a transparent, efficient and effective manner to maintain clean audit PERFORMANCE S ACTUAL PERFORMANCE ESTIMATED PERFORMA NCE MEDIUM TERM TARGETS 2011/12/ / / / / / / /19 Comply with PFMA and Regulations Improve management of the Services SETA financial affairs TITLE STATEMENT STRATEGIC ACTIVITY Percentage of compliance with statutory submissions % 100% 100% 100% Outcome of audit of Annual Financial Statements Unqualified Qualified Unqualified Clean Unqualified Clean Clean Clean # People, Systems and Communication People and systems deployed to leverage technology and enable effective communication PERFORMANCE S ACTUAL PERFORMANCE ESTIMATED PERFORMA NCE MEDIUM TERM TARGETS 2011/12/ / / / / / / /19 Human resources effectively managed to ensure adequate and sufficiently skilled people retained and performance monitored Employee vacancy rate % 36% 8% 15% 15% 15% Services SETA annual performance plan 2016/17 16

25 STRATEGIC ACTIVITY PERFORMANCE S ACTUAL PERFORMANCE ESTIMATED PERFORMA NCE MEDIUM TERM TARGETS 2011/12/ / / / / / / / Employee turnover rate % 13% 8% 15% 15% 15% ICT Governance and service management standards established and implemented to support and enable the business delivering value and improving performance Building Career and Vocational Guidance Percentage of employees performance managed % 90% 90% 90% 90% Percentage of employees trained % 65% 80% 80% 80% Level of ICT service management achieved Percentage compliance with Corporate Governance 33% 66% 100% 100% 100% ICT Policy Framework (Phase 2) (Phase 3) (Phase 3) (Phase 3) Number of key stakeholder engagements Number of career guidance events Services SETA annual performance plan 2016/17 17

26 4.5 Programme performance indicators and quarterly targets for 2016/17 TITLE STATEMENT STRATEGIC ACTIVITY # Finance Financial affairs of the Services SETA are managed in a transparent, efficient and effective manner to maintain clean audit PERFORMANCE S STATUS TYPE REPORTING PERIOD ANNUAL TARGET QUARTERLY TARGETS 2016/17 Q1 Q2 Q3 Q4 BUDGET R thousand Comply with PFMA and Regulations Improve management of the Services SETA financial affairs TITLE STATEMENT STRATEGIC ACTIVITY Percentage of compliance with statutory submissions Outcome of audit of Annual Financial Statements Changed Continued # People, Systems and Communication Non- Cumulative Annually 100% - 100% - - R Non- Cumulative Annually Clean - Clean People and systems deployed to leverage technology and enable effective communication PERFORMANCE S STATUS TYPE REPORTING PERIOD ANNUAL QUARTERLY TARGETS TARGET 2016/17 Q1 Q2 Q3 Q4 BUDGET R thousand Human resources effectively managed to ensure adequate and sufficiently skilled people retained and performance monitored Employee vacancy rate Continued Cumulative Quarterly 15% 10% 13% 13% 15% R Includes Human Resources and Facilities Management Services SETA annual performance plan 2016/17 18

27 STRATEGIC ACTIVITY PERFORMANCE S STATUS TYPE REPORTING PERIOD ANNUAL TARGET QUARTERLY TARGETS 2016/17 Q1 Q2 Q3 Q4 BUDGET R thousand STRATEGIC ACTIVITY ICT Governance Framework established and implemented to support and enable the business delivering value and improving performance Employee turnover rate Continued Cumulative Quarterly 15% 10% 13% 13% 15% Percentage of employees 90% performance managed Changed Cumulative Quarterly (Quarterly) 90% 90% 90% 90% Percentage of employees trained Changed Cumulative Quarterly 80% 60% 65% 75% 80% ANNUAL TARGET QUARTERLY TARGETS PERFORMANCE S Building Career and Vocational Guidance Level of ICT service management achieved Percentage compliance with Corporate Governance ICT Policy Framework STATUS New TYPE REPORTING PERIOD 2016/17 Q1 Q2 Q3 Q4 BUDGET R thousand Non- Cumulative Annually R Non- Cumulative 100% (Phase 3) % (Phase 3) New Annually Number of key stakeholder engagements Previous Cumulative Quarterly R Number of career guidance events Previous Cumulative Quarterly Includes Communications, Stakeholder Outreach and Corporate Services Services SETA annual performance plan 2016/17 19

28 4.6 Reconciling performance targets with the Budget and MTEF Administration Expenditure by Programmes Expenditure outcome Expected Expenditure Medium-term expenditure estimate R thousand 2013/ / / / / /18 Finance 119, , Human Resources 10, , Facilities Management 8, , Information Technology 13, , Communications 4, 872 2, Stakeholder Outreach Corporate Services TOTAL Services SETA annual performance plan 2016/17 20

29 5 PROGRAMME 2: GOVERNANCE 5.1 Purpose The purpose of this programme is to enable the Services SETA to deliver its mandate in compliance with all governance imperatives. 5.2 Description of the programme 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. 5.3 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 Organisational Governance Accountable governance and oversight leadership focussed on high performance, compliance, internal controls and enterprisewide risk mitigation Special Projects Transformational imperatives and national priorities promoted through partnership development and targeted intervention Services SETA annual performance plan 2016/17 21

30 5.4 Programme performance indicators and annual targets for 2016/17 TITLE STATEMENT # Organisational Governance Accountable governance and oversight leadership focussed on high performance, compliance, internal controls and enterprise-wide risk mitigation STRATEGIC ACTIVITY Consistent leadership based on honesty, ethical leadership and good governance enabling responsible oversight of financial and performance reporting Provide effective and efficient Legal Services PERFORMANCE S ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/ / / / / / / /19 Percentage attendance rate of scheduled Accounting Authority meetings - 70% 70% 70% 70% 80% 80% 80% Percentage approval of financial and performance reporting % 100% 100% Frequency of oversight of current legal investigations reported to the board Quarterly Quarterly Quarterly Percentage of whistleblowing reports processed % 100% 100% Percentage of compliant requests for access to public records processed % 100% 100% Services SETA annual performance plan 2016/17 22

31 STRATEGIC ACTIVITY PERFORMANCE S ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS Facilitate compliance and strengthen internal control though assessment, development and monitoring action plans / / / / / / / /19 Percentage of compliance action plans implemented % 100% 100% Mitigate the negative impact of identified strategic risks Percentage of audit action plans implemented % 100% 100% Percentage of risk action plans implemented % 90% 90% 90% Services SETA annual performance plan 2016/17 23

32 TITLE STATEMENT # Special Projects Transformational imperatives and national priorities promoted through partnership development and targeted intervention STRATEGIC ACTIVITY Special Projects Implemented to support transformation agenda PERFORMANCE S ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2011/ / / / / / / /19 Number of TVET college partnerships Number of HET institutions partnerships Number of employer partnerships Number of cooperatives supported Number of SMEs supported Number of non-profit organisations (NGOs & CBOs) supported Number of small nonlevy paying employers supported Number of Trade Unions supported Number of rural development projects Services SETA annual performance plan 2016/17 24

33 5.5 Programme performance indicators and quarterly targets for 2016/17 TITLE STATEMENT STRATEGIC ACTIVITY # Organisational Governance Accountable governance and oversight leadership focussed on high performance, compliance, internal controls and enterprise-wide risk mitigation ANNUAL QUARTERLY TARGETS TARGET PERFORMANCE S STATUS TYPE REPORTING PERIOD 2016/17 Q1 Q2 Q3 Q4 BUDGET R thousand Consistent leadership based on honesty, ethical leadership and good governance enabling responsible oversight of financial and performance reporting Provide effective and efficient legal service Percentage attendance rate of scheduled Accounting Authority meetings Percentage approval of financial and performance reporting Frequency of oversight of current legal investigations reported to the board Previous New New Non- Cumulative Quarterly Percentage of whistleblowing reports processed New Cumulative Quarterly Percentage of compliant requests for access to public records processed New Cumulative Quarterly 80% (Quarterly ) 80% 80% 80% 80% R Non- Cumulative Annually 100% % Non- Cumulative Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly R % (Quarterly ) 100% 100% 100% 100% 100% (Quarterly ) 100% 100% 100% 100% 5 Includes Board Services and OCEO Services SETA annual performance plan 2016/17 25

34 STRATEGIC ACTIVITY PERFORMANCE S STATUS TYPE REPORTING PERIOD ANNUAL TARGET QUARTERLY TARGETS 2016/17 Q1 Q2 Q3 Q4 BUDGET R thousand Facilitate compliance and strengthen internal control though assessment, development and monitoring action plans Percentage of compliance action plans implemented New Cumulative Quarterly 100% 85% 90% 95% 100% R219 Percentage of audit action plans implemented New Cumulative Quarterly 100% 85% 90% 95% 100% Mitigate the negative impact of identified strategic risks Percentage of risk action plans implemented New Non- Cumulative Quarterly 90% 80% 80% 85% 90% R170 Services SETA annual performance plan 2016/17 26

35 TITLE STATEMENT STRATEGIC ACTIVITY Special Projects Implemented to support transformation agenda # 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 ANNUAL QUARTERLY TARGETS TARGET PERFORMANCE S STATUS TYPE REPORTING PERIOD BUDGET 2016/17 Q1 Q2 Q3 Q4 R thousand Number of TVET college partnerships Continued Cumulative Quarterly R308 6 Number of HET institution partnerships Continued Cumulative Quarterly Number of employer partnerships New Cumulative Quarterly Number of cooperatives supported Continued Cumulative Quarterly Number of SMEs supported Continued Cumulative Quarterly Number of non-profit organisations (NGOs & CBOs) supported Continued Cumulative Quarterly Number of small nonlevy paying employers supported Continued Cumulative Quarterly Number of Trade Unions supported New Cumulative Quarterly Number of rural development projects Changed Cumulative Quarterly The total Discretionary Grant budget for non-pivotal Learning Programmes is R227 million as per annexure C Scenario A: Grant Regulations. Most of this budget is allocated to special projects as enabling Pivotal Learning Programmes but is embedded in the projected expenditure of PI that is R1,018 million Services SETA annual performance plan 2016/17 27

36 5.6 Reconciling performance targets with the Budget and MTEF Governance Expenditure by Programmes Expenditure outcome Expected Expenditure Medium-term expenditure estimate R thousand 2013/ / / / / /18 Board Services OCEO Legal Services Organisational Compliance Risk Management Special Projects TOTAL Services SETA annual performance plan 2016/17 28

37 6 PROGRAMME 3: PLANNING 6.1 Purpose To enable the Services SETA strategic management capability to achieve on its mandate. 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 organisational capability to use strategic performance information is executing the strategy. This programme is aligned to Strategic Goals 4: Strengthen Services SETA capability to lead the sector and compliance with governance imperatives. 6.2 Description of the programme Functions of this programme encompass research and planning, performance information monitoring and reporting, and evaluation. 6.3 Strategic Objectives # Strategic Objective Title Strategic Objective Statement Sector Skills Planning Credible and evidence-based research and policy informs organisational planning ensuring appropriate and relevant alignment between supply and demand in the Services Sector Organisational Performance Accurate reporting of organisational performance and, utilisation and assessment of results to inform programme improvement and service delivery priorities Services SETA annual performance plan 2016/17 29