Vuselela TVET College 2016 Annual Report

Transcription

1 Vuselela TVET College 2016 Annual Report Page 1

2 TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS PART A: GENERAL OVERVIEW MESSAGE FROM THE COUNCIL CHAIRPERSON OVERVIEW BY THE ACCOUNTING OFFICER STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY STRATEGIC OVERVIEW VISION, MISSION AND VALUE STATEMENTS STRATEGIC OBJECTIVES LEGISLATIVE AND OTHER MANDATES LEGISLATIVE FRAMEWORK LEGISLATIVE AND POLICY MANDATES ANNUAL CYCLE OF REPORTING HIGH-LEVEL ORGANISATIONAL STRUCTURE PART B: PERFORMANCE INFORMATION COLLEGE PERFORMANCE AND ORGANISATIONAL ENVIRONMENT PERFORMANCE REPORTING ANNUAL PERFORMANCE ACHIEVEMENTS COLLEGE ACHIEVEMENT IN TERMS OF EXPECTED OUTCOMES STRATEGY TO DEAL WITH UNDERPERFORMANCE PART C: GOVERNANCE CONSTITUTION OF THE COLLEGE COUNCIL AND GOVERNANCE STRUCTURES COLLEGE PERFORMANCE IN TERMS OF STRATEGIC OBJECTIVES RISK MANAGEMENT REPORTS BY COMMITTEES OF COUNCIL ACADEMIC BOARD REPORT PURPOSE OF THE ACADEMIC BOARD: PLANS OF THE ACADEMIC BOARD: FREQUENCY OF THE ACADEMIC BOARD MEETINGS: RELATIONSHIP TO COUNCIL AND SRC THE BOARD OF THE COLLEGE CONSISTS OF: STUDENT REPRESENTATIVE COUNCIL REPORT Page 2

3 PART D: FINANCIAL INFORMATION COUNCIL RESPONSIBILITY AND APPROVAL REPORT OF THE ACCOUNTING OFFICER REPORT OF THE AUDIT AND RISK COMMITTEE AUDITED ANNUAL FINANCIAL STATEMENTS REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT REPORT ON AUDIT OF COMPLIANCE WITH LEGISLATION STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL PERFORMANCE STATEMENT OF CHANGES IN NET ASSETS CASH FLOW STATEMENT ACCOUNTING POLICIES NOTES TO THE ANNUAL FINANCIAL STATEMENTS Page 3

4 ABBREVIATIONS AND ACRONYMS AG Auditor General AGSA Auditor General of South Africa AIDS Acquired immune deficiency syndrome ARMCO Audit and Risk Management Committee CET Continuouing Education and Training DHET Department of Higher Education and Training DPA Deputy Principal Academic DPC Deputy Principal Corporate DPF Deputy Principal Finance EXCO Executive Committee GRAP Generally Recognised Accounting Practice HE Higher Education HIV Human immunodeficiency virus HOD Head of Department HR Human Resource IESBA Ethics Standards Board for Accountants ISA International Standards on Auditing IT Information Technology M&E Monitoring and Evaluation MOU Memorandum of Understanding MTSF Medium Term Strategic Framework NC(V) National Certificate (Vocational) NDP National Development Programme NQF National Qualifications Framework PAA Public Audit Act PFMA Public Finance Management Act PSET Post School Education and Training SAICA South African Institute of Chartered Accountants SETA Sector Education and Training Authority SMT Senior Management Team SOE State Own Entity SRC Student Representative Council SSO Student Support Officer TVET Technical and Vocational Education and Training TVETC Technical and Vocational Education and Training College Page 4

5 PART A: GENERAL OVERVIEW Page 5

6 1. MESSAGE FROM THE COUNCIL CHAIRPERSON Vuselela TVET College have managed to perform its mandated tasks of Teaching and Learning particularly in the financial year , with diligence and vigour. The College played and continue to play a critical role in developing and capacitating the beneficiaries and largely the students, through its highly productive achievements both in Engineering and Business studies since it has a variety of disciplines inclusive of Occupational courses. The College Council of Vuselela TVET College played a vital role in as far as oversight is concerned. It encouraged compliance and advises where necessary through its availability in effective Committees. The Council also played a role in Policies, Budget and Strategic Planning of the institution. It will be important for me to mention that the College Council performed its duties as the prescript of the CET Act, 16 of 2006 as amended. It is a great honour for our people to know that our College can help shape your intended career informed by our history of success. With that note the Council and the Management team wish to see you joining the College that aims to change lives of our Citizenry. T RAMPHELE COLLEGE COUNCIL CHAIRPERSON Page 6

7 2. OVERVIEW BY THE ACCOUNTING OFFICER The year under review had many challenges for Vuselela TVET College. The financial difficulty that was experienced in the last few years are unfortunately continuing despite the substantial once off cash injection received from DHET. However, the Management and Council have designed a turnaround strategy to improve the financial health of the college and ensure commercial sustainability in the future. The strategy entails implementation of cost cutting measures, improved debt collecting, resuscitating the income from commerce and industry and reducing the wage bill of the college. When analysing the activities of the core business of the College the picture also does not look promising. One cannot avoid statistics where the fifty Colleges in South Africa are measured by comparing the pass rate of its students. In this rating Vuselela TVET College lay towards the bottom ranking displaying a tendency of slipping one position every year for the past three years. It is clear from the two factors mentioned that the College was not performing at the required standard of achievement. However, all is not lost and on closer scrutiny it as clear that the collective effort of staff, council and students are beginning to impact positively. The support and guidance from the DHET must also be acknowledged. In 2016 the governance structures of the College started functioning properly and all committees delivered on their mandate. The academic unit has designed a strategy to deal with underperformance of the College and its continued implementation should bear fruit in the near future. Here I must report on the general commitment by staff for improved student achievement; staff enthusiastically participated in the development programmes that were offered to them. There was also an increase in the number of beneficial and functional partnerships that the College has with other learning institutions, including international colleges, and business enterprises. The focus in Vuselela TVET College will return to the student and their interest; therefore all effort and resources will be directed at planning and administration of registration and enrolment, proper management of assessment and examination as well as quality teaching and learning toward improved academic performance of students. DJ SMITH ACTING PRINCIPAL Page 7

8 3. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY To the best of my knowledge and belief, I confirm the following: 1. All information and amounts disclosed throughout the annual report are consistent. 2. The annual report has been prepared in accordance with the guidelines issued by the Department of Higher Education and Training. 3. The Annual Financial Statements have been prepared in accordance with the relevant standards, frameworks and guidelines issued by National Treasury. 4. The accounting officer, i.e. the principal, is responsible for the preparation of the Annual Financial Statements and for the judgements made in this document. 5. The accounting officer, i.e. the principal, is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the Annual Financial Statements. 6. The Auditor-General and/or external auditors express an independent opinion on the Annual Financial Statements. In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of Vuselela TVET College for the financial year ended 31 December Page 8

9 4. STRATEGIC OVERVIEW 4.1 Vision, Mission and Value Statements VISION Where we want to be MISSION Why we exist VALUES How we behave Vuselela TVET College strives to provide the necessary skills and knowledge to meet the present and future needs of the economy and the community. To provide affordable, accessible education, high quality programmes and delivery modes that are responsive to the needs of the community and industry. Accountability Transparency Inclusiveness Quality Redress of educational opportunities Accessibility STRATEGIC GOALS AND INITIATIVE What we are going to do INDIVIDUAL PERFORMANCE How we manage our individual performance ORGANISATIONAL PERFORMANCE How we manage our collective performance Page 9

10 4.2 Strategic Objectives TVET COLLEGE STRATEGIC OBJECTIVES Strategic Objective 1 Objective Statement Links Justification Performance indicator links to this objectives To provide quality technical and vocational education and training services and increase academic achievement and success of students by 10% over a 3 year period. To improve quality of technical and vocational education and training provision through the development of teaching and learning support plans, inclusive of appropriate student support. Government NDP, MTSF and White Paper on PSET DHET Strategic Plan DHET Annual Performance Plan Vuselela TVET College Annual Performance Plan Vuselela TVET College Operational Plan Vuselela TVET College Student Support Services Plan Vuselela TVET College Teaching and Learning Plan (Improvement Plan) To ensure that lecturers and students receive the support necessary for lecturers to function optimally and students to perform optimally in technical and vocational programmes. To ensure improvement in student success in programmes offered at the college as well as student progression (measured in terms of pass rates). To increase the overall certification and throughput rate of R191; Business and Engineering studies with 10%. Student Bursaries: To increase overall percentage number of bursary recipient with 15%. Artisan Development: To increase trade test pass rate to 65% across all trades. Strategic Objective 2 Objective Statement Links To have adequate infrastructure and systems in place to increase access and provide effective services to students. To ensure institutional capacity and efficiency in terms of the provision of access and support services to students. Government NDP, MTSF and White Paper on PSET DHET Strategic Plan DHET Annual Performance Plan Vuselela TVET College Annual Performance Plan Vuselela TVET College Operational Plan Vuselela TVET College Student Support Services Plan Page 10

11 Justification Performance indicator links to this objectives Vuselela TVET College Teaching and Learning Plan (Improvement Plan) To increase the number of skilled youth by expanding access to education and training opportunities while ensuring provision of effective services to students. Adequate teaching and learning support developed and implemented. Compliance to policies adherence to DHET policies and regulations applicable to the TVETC sector 100% Maintain 352 beds for student accommodation Improving BMS to include more functions for effective and efficient management and reporting Strategic Objective 3 Objective Statement Links Justification Performance indicator links to this objectives To develop partnerships and maintain good stakeholder relations to increase the number of students who are adequately prepared to enter the labour market and higher learning opportunities. To increase the number of students who are able to access formal or selfemployment and/or further and higher education and training opportunities. To provide work placement opportunities for lecturing staff in order to improve quality of teaching and learning. Government NDP, MTSF and White Paper on PSET DHET Strategic Plan DHET Annual Performance Plan Vuselela TVET College Annual Performance Plan Vuselela TVET College Operational Plan Vuselela TVET College Student Support Services Plan Vuselela TVET College Student Placement Plan To ensure students are adequately prepared and supported to access formal or self-employment and/or further and higher learning opportunities. Business Development unit to increase partnerships with industries and SOE s for enterprises Signed agreements with other Higher Education Intuitions for articulation Participation in local business chambers activities Strategic Objective 4 Objective Statement Links To ensure continuous compliance in terms of good corporate governance and effective management of all college resources as well as information and data reporting. To govern and steer the college to function optimally and take appropriate action where deficiencies are detected. Government NDP, MTSF, National White Paper on PSET and the Skill Accord DHET Strategic Plan Page 11

12 Justification Performance indicator links to this objectives DHET Annual Performance Plan Vuselela TVET College Annual Performance Plan Vuselela TVET College Operational Plan Vuselela TVET College Monitoring and Evaluation (M&E) Plan; To ensure the college is efficiently governed and managed within the applicable acts, policy and regulatory frameworks and standards relevant thereto so that it functions optimally. Strive for 100% compliance Strategic Objective 5 Objective Statement Links Justification Performance indicator links to this objectives To monitor and evaluate all college processes in terms of the TVET College Monitoring and Evaluation Framework and report quarterly on college performance in this regard. To monitor and report on college systemic efficiency so that appropriate action is taken where deficiencies are detected. Government NDP, MTSF and the National White Paper on PSET DHET Strategic Plan DHET Annual Performance Plan Vuselela TVET College Annual Performance Plan Vuselela TVET College Operational Plan Vuselela TVET College Student Support Services Plan Vuselela TVET College Student Placement Plan Vuselela TVET College Teaching and Learning Plan (Improvement Plan) Vuselela TVET College Monitoring and Evaluation (M&E) Plan; To ensure monitoring and evaluation of college processes and plans are conducted and regularly reported on. Strive for 100% compliance Develop and implement a college management plan for TVET M&E Page 12

13 5. LEGISLATIVE AND OTHER MANDATES 5.1 Legislative Framework In terms of Sections 25(3) and 25(4) of the Continuing Education and Training (CET) Colleges Act, No 16 of 2006 (as amended), public technical and vocational education and training (TVET) colleges are required to produce annual financial reports and to comply with any reasonable additional reporting requirement established by the Minister. Moreover, Section 44 of the Act requires colleges to annually report to the Minister in respect of its performance and its use of available resources. In addition, these pieces of legislation govern and steer the college in terms of achievement of its strategic and performance objectives. 1. LEGISLATIVE AND POLICY MANDATES The Constitution of the Republic of South Africa (Section 29(1)-(4)) provides for the right of basic and further education to everyone in the official language of their choice provided equity, redress and practicability are taken into account. In addition, the Continuing Education and Training (CET) Colleges Act (No 16 of 2006) provides for the regulation of continuing and further education and training through the establishment, governance and funding of public technical and vocational education and training (TVET) colleges and the promotion of quality in continuing and further education and training. Further sets of legislation that impact on the TVET colleges sector and its strategic and national imperatives are listed below: o National Qualifications Framework (NQF) Act (No 67 of 2008); o Higher Education (HE) Act (No 101 of 1997); o Skills Development Act (No 97 of 1998); o Skills Development Levies Act (no 9 of 1999); and o General and Further Education and Training Quality Assurance Act (No 58 of 2001). In addition, the White Paper for Post-School Education and Training mandates delivery and strategic priorities in the TVET colleges sector. Other policy mandates include: o National Trade Testing Regulations; o SETA Grant Regulations; o National Skills Development Strategy; o Public TVET College Attendance and Punctuality Policy; and o Policy on the Conduct of National Examinations and Assessment. Page 13

14 5.2 Annual Cycle of Reporting The final annual reports of the TVET colleges must be submitted to the Department on the last day of June the following year. These reports, referred to in Sections 25 and 44 of the CET Colleges Act, must include: o a report on the overall management and governance of the college; o a report on its overall performance and use of available resources; o duly audited annual financial statements; and o any additional information required by the Minister in terms of the Act. 5.3 Audits and verification timeframes The table below reflects the periods during which audits will be conducted annually for enrolment dataset of the previous academic year as per Audit and Verification of TVET College Enrolment Policy. External audit by AG Internal audit by college-appointed auditors Departmental Verification Annual report submission with unaudited headcount (electronic copy) Annual financial statements (unaudited) submission Annual financial statements (audited) submission Annual report submission with audited headcount April to May annually January to May annually February to March annually 31 March of year of audit 31 March of year of audit 31 March of year of audit 30 June of year of audit Page 14

15 7. HIGH-LEVEL ORGANISATIONAL STRUCTURE CURRENT STAFF STRUCTURE CORPORATE CENTRE PA Principal Govern Man DPA Assist DPC Assist DPF (SAICA) Assist Program Manager Program Manager SS Manager SS Fin Adm. SS Plmt Adm Bus Dev Man HR Manager Fin Manager QMS Man IT Manager HR Practitioner HR Practitioner HR Practitioner HR Registry Assist Accountant Payroll Administrator Fin Officer Fin Officer Cred Officer Fin Officer Accr Co-or Mark Manager SUPPLY CHAIN MANAGER Lernshp Man Lernshp Man Mark Practitioner SC Practitioner Occ Prgr Man Mark Practitioner SC Practitioner Admin Ass Receptionist Fin Officer MIS Manager Infrs Manager Infrs Adm QMS Admin Gen Assistant Gen Assistant Gen Assistant Potch Cam Man Klerksdorp Cam Man Matlosana Cam Man Jouberton Cam Man Taung Cam Manager MIS Practitioner MIS Practitioner Page 15

16 Category Persal Paid College Council Paid Total Management 3-3 Lecturing staff Support staff TOTALS Page 16

17 PART B: PERFORMANCE INFORMATION Page 17

18 1. COLLEGE PERFORMANCE AND ORGANISATIONAL ENVIRONMENT Strengths Competent, qualified and experienced staff from the majority of staff complement. Most of the staff are studying to better qualifications. Hard working and competitive staff. Pressure from all sides forced some managers to perform better. Strategic plan orientated can be more productive. The partnership the College has with the private sector. SABS Accredited as ISO 9001: 2008 Opportunities Expansion on programmes and learnerships. Clear expectations from DHET easier to comply. Campuses spread over a larger geographical area. Distance / E-learning. Partnerships with industry. TVET sector has an important role to play in the economic development of the country. Change in organisational culture. Staff members with huge potential. Weaknesses High wage bill Inadequate availability of resources. Low morale of staff as a result of lack of resources. Some infrastructure not relevant to TVET programmes. Working in silo s not seeing the bigger picture and which processes having an impact on each other Failure to provide teaching and learning material on time. Infrastructural needs. Lack of skills in certain industry areas of development. Limited access for students with disability. Threats Financial constraints and inadequate funding. Inadequate infrastructure and connectivity. Declining economic activities in the area. Page 18

19 2. PERFORMANCE REPORTING 2.1 Annual Performance Achievements STRATEGIC OBJECTIVES SO 1 To provide quality technical and vocational education and training services and increase academic achievement and success of students PERFORMANCE INDICATORS Appropriate teaching and learning support plan developed and implemented (n) Appropriate student support plan developed and implemented (n) Improved certification rates in: NC(V) L4 N3 & N6 (%) Throughput rate (%) Funded NC(V) L4 students obtaining qualification within TVET COLLEGE 2016 PLANNED TARGET 1 1 TVET COLLEGE 2016 ACHIEVEMENT EXPLANATORY REMARKS Yes Yes Monitoring is NC(V) L4: 59% N3: 56 % N6: 53 % NC(V) L4: 86 % N3: 48 % N6: 45 % NC(V) L4: 29 % N3: 38 % N6: 54 % NC(V) L4: 59% N3: 52 % N6: 65 % 60% 64% done by DHET through the regional offices on a quarterly basis The certification rate was calculated only on students who enrolled for 4 subjects. That implies that the exam only and students who enrolled for only 1 subject was not included. This will be able if DHET can provide a data base of all students. Most N6 students are employed students and study in the afternoons with reduced hours. All N6 students will not take more than 2 subjects per enrolment that will not provide an accurate certification rate. Page 19

20 STRATEGIC OBJECTIVES SO2 To have adequate infrastructure and systems in place to increase access and provide effective services to students PERFORMANCE INDICATORS stipulated time (%) TVET students enrolled in foundation or bridging programmes (n) Students completing artisan-related programmes (n) Established centre/s of specialisation (COS) (n) Headcount enrolment (n) Students accommodated in college accommodation (n) Qualifying students obtaining financial assistance (n) TVET COLLEGE 2016 PLANNED TARGET TVET COLLEGE 2016 ACHIEVEMENT EXPLANATORY REMARKS All students (R191, NCV and Occupational) counted once for All students in hostels, counted 1 for SO3 To develop partnerships and maintain good stakeholder relations to increase the number of students who are adequately prepared to enter the labour market or further and higher learning opportunities Beneficial and functional college partnerships (n) TVET lecturers placed in workplaces for specified periods (n) Page 20

21 STRATEGIC OBJECTIVES PERFORMANCE INDICATORS TVET COLLEGE 2016 PLANNED TARGET TVET COLLEGE 2016 ACHIEVEMENT EXPLANATORY REMARKS TVET students placed in workplaces/industry for specified periods for work exposure, experiential learning and/or certification purposes (n) SO4 100% 99% To ensure continuous business Compliance to governance standards (%) excellence in terms of good corporate 100% 99% governance and effectual management of all college Compliance to policies and regulations applicable to the TVET College sector (%) resources as well as information 0 0 and data reporting Obtaining unqualified audits or assessments (n) Compliance with national 100 % 100 % policy of college examination centres conducting examinations and assessments (%) SO5 4 4 To monitor and evaluate all college processes in terms of the framework for Accurate M&E quarterly reports submitted (n) TVET college performance and report quarterly in this regard Page 21

22 2.2 College Achievement in terms of Expected Outcomes No Outcome Indicator Headcount enrolments (n) Certification rates in TVET qualifications (%) Compliance with national policy of college examination centre/s conducting national examinations and assessments (%) Throughput rate (%) Students accommodated in public TVET college accommodation (n) Qualifying TVET students obtaining financial assistance (n) Funded NC(V) L4 students obtaining qualification within stipulated time (%) Compliance to governance standards (%) TVET lecturers placed in workplaces for specified periods 2016/17 Planned National Target TVET College 2016 Planned Target NC(V) L4: 40% N3: 65% N6: 45% NC(V) L4: 59% N3: 56 % N6: 53 % TVET College 2016 Achievement Explanatory Remarks 6806 All students NC(V) L4: 29 % N3: 38 % N6: 54 % 100% 100% 100% NC(V) L4: 86 % N3: 48 % N6: 45 % 9868 NC(V) L4: 59% N3: 52 % N6: 65 % % 60% 64% 100% 100% 99% 70 5 (R191, NCV and Occupational) counted once for All students (R191, NCV and Occupational) counted once for Page 22

23 No Outcome Indicator 2016/17 Planned National Target TVET College TVET College 2016 Planned 2016 Target Achievement Explanatory Remarks (n) TVET students placed in workplaces/industr y for specified 10. periods for work exposure, experiential learning and/or certification purposes (n) Students 11. completing artisan-related programmes (n) 2.3 Strategy to deal with underperformance Staff planning must be done in advance and the college must ensure that a database of qualified lecturers are available to appoint when needed. A group leader should be appointed where more than 2 lecturers teach the same subject. Best practices may be shared between the lecturers. Additional classes will be offered especially in subjects where students underperformed e.g. Mathematics. Students need to be place at relevant companies to obtain more work experience and work exposure. Constant monitoring of lecturers by HODs must take place through informal and formal visits. Poor attendance and non-attendance of assessments must be followed up by SSO Academic. Staff must be made aware of targets of enrolment as planned in the Strategic Plan of the College. Competent and dedicated moderators will ensure that the level of assessments are appropriate. Language was identified as a barrier and language lecturers will assist with terminology and concepts as requested by vocational lecturers. Colleagues will assist each other in areas where they struggle (Swop periods share best practices). Campus-based Subject committees, with clear terms of reference, will be re-introduced. This will capacitate lecturers with the relevant subject knowledge. The correct placement of students will ensure better performance of students. Academic Class Representatives will assist lecturers and fellow students in the class room. Study groups will be established in the afternoons. The tutoring systems should also be implemented by using strong fellow students to assist. Class registers must be available from the first day of offering classes. Follow-ups must be done by the SSO on a regular basis of absenteeism. Sufficient computer rooms must be available per campus with internet connectivity. Sufficient workshops must be available per campus with the necessary equipment and tools. Page 23

24 Acknowledge top performers per subject: Display names in the class. Top performers function may be held. Statistical Analysis: After each assessment the progress will be measured by compiling a statistical report that contains the following: class average, pass rate, distribution of marks, top 3 performers and student referral list. Page 24

25 PART C: GOVERNANCE Page 25

26 1. CONSTITUTION OF THE COLLEGE COUNCIL AND GOVERNANCE STRUCTURES No. First Name Surname Appointment Designated Functions 1. Tshidiso Ramphele Ministerial Appointee College Council Chairperson 2. Timothy Ndebele College Appointee - Donor 3. Patricia Gaaname College Appointee 4. Maria Madiope Ministerial Appointee 5. Litha Gcwabe Ministerial Appointee 6. Dhanishwar Ramlall Ministerial Appointee 7. Mantsose Sethusha Ministerial Appointee Deputy Chairperson HR & Advisory Committee Chairperson College Council Secretary Audit & Risk Management Committee Chairperson Council Academic Board Representative Council member in ARMCO Committee (from May 2016) Council member in Finance Committee (from May 2016) Council member in Planning & Resource Committee 8. Lerato Gambu College Appointee Finance Committee Chairperson 9. Abram Nkomo College Appointee 10. Leon Jackson College Appointee Council Academic Board Representative Planning & Resource Committee Chairperson 11. Ann Naik Internal Appointee Principal 12. Theophillus Masemola Internal Appointee Academic Board Representative in Council 13. Joseph Modise Internal Appointee Support Staff Representative 14. Keabetswe Letshabo Internal Appointee Educators Staff Representative (From March 2016) 15. Tsholofelo Mokgatle Internal Appointee SRC President 16. Daniel Ntsitsi Internal Appointee SRC General Secretary There were two new appointments made during the year, Mr Ramlall and Mr Qcwabe. The appointment of the two additional members makes up a full constitution of Council as stipulated in the CET Act 16 of 2016 as amended. Page 26

27 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Ordinary meeting 15 April July September December 2016 Special meeting - 20 May Statutory functions of Council: The Council, with the concurrence of the Academic Board: develops a strategic plan for the College; determines the language policy of the College, subject to the approval of the Minister; ensures that the College complies with accreditation requirements necessary to provide learning programmes in terms of standards and qualifications as registered on the National Qualification Framework; and subject to applicable policy determined by the Minister, determine the student admission policy of the College. Matters referred to Council for decision making are set out in the College Statute and as stipulated in the CET Act 16 of 2016 as amended. The Council however remains accountable for setting and maintaining the strategic direction of the College and approval of major developments, and may require regular reports from management on day-to-day operations of the business of the College. 2. COLLEGE PERFORMANCE IN TERMS OF STRATEGIC OBJECTIVES The College serves the following communities due to its location: Dr Kenneth Kaunda District specifically the Tlokwe Municipality and Matlosana Municipality Dr Ruth Segomotsi Mompati District specifically the Greater Taung Municipality Most students at Vuselela TVET College hail from these communities. However, through Partnerships with National Institutions we serve students from throughout South Africa e.g. Kwa Zulu Natal, Eastern Cape, Gauteng and the Western Cape. Page 27

28 The College has formal MOU s with 14 outside institutions that are mutually beneficial and functional. The growth in Partnerships is positive but the College has the potential to conclude more in future. 3. RISK MANAGEMENT Due to the low maturity level of Risk Management at the College the progress in 2016 was marginal. The establishment of an Internal Risk Committee consisting of the principal, members of the SMT, an external risk expert, the risk manager as well as the governance manager was identified as the best point of departure to get risk management established at the college The following documents were refined and or developed to ensure compliance with required risk management documentation and to lay a solid foundation for the successful implementation of a Risk Management System at the college: o o o o o o Risk Committee Charter Risk Management Implementation Plan Risk Management Policy Risk Management Strategy Fraud & Corruption Prevention Plan and Strategy Whistle Blower Policy Progress with the implementation process was reported on at the quarterly Audit & Risk Committee Meetings Strategic Risks were identified and recorded in the Strategic Risk Register where these risks were evaluated to determine the residual risk scores, the risk owners, mitigating factors as well as actions to improve the management of the risks in order to reduce the risks to an acceptable level Good progress have been made to date but a lot of work still needs to be done to get Risk Management at an acceptable level at the College 4. REPORTS BY COMMITTEES OF COUNCIL 4.1 Audit and Risk Management Committee The Committee has four ordinary meetings in a year. It however could not meet its target as a result of lack of attendance of external members. Subsequent to that, new members were nominated and appoint to fully constitute the committee. It continues consists of three independent members of Council whom one is the Chairperson and three external members. Page 28

29 Type of meeting Quarter 1 Quarter 2 Quarter 3 Quarter 4 Ordinary meeting 4 April Special meeting The primary purpose of the Committee is to: ensure the effective and efficient financial management and performance treasury functions of the college; ensure that all activities are within the delegations as given by EXCO and the Council; and plays an important role in making recommendations to the Council and other relevant authorities with regard to: Financial reporting to management and other users for such information; Risk management; Internal audit; Combined assurance; Internal control; Legal and regulatory compliance; and External audit. The committee could not fully execute its mandate as per the committee charter. The College did not have a functioning internal audit unit in 2016, however was outsourcing its internal audit functions. Both internal and external auditors have unrestricted access to the Committee, which ensures that their independence is in no way compromised. 4.2 Finance Committee The Committee has four ordinary meetings in a year, however following separation from the Audit and Risk Management Committee only started its functionality during the second quarter of the year. It consists of four independent members of Council whom one is the Chairperson, and eight members of senior and junior management. Page 29

30 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Ordinary meeting - 21 June September November 2016 Special meeting The primary purpose of the Committee amongst other is to recommend the institution s annual operating and capital budget, and monitors performance in relation to approved operating and capital budgets. It also interrogates financial implications of both capital development programmes and the annual operating budget, including the implications of resource allocation to strategic activities. It was responsible for ensuring the financial health of the institution as a going concern and for ensuring that the accounting information systems are appropriate and the staff complement adequate and suitably qualified to maintain the accounting records of the institution. 4.3 Human Resource & Advisory Committee The Committee has four ordinary meetings in a year. The Committee consists of three independent members of Council whom one is the Chairperson, and five members of management. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Ordinary meeting 3 March 31 May September 15 November Special meeting Human Resource & Advisory Committee objective is to ensure that the College complies with all relevant norms, legislation, directives and collective bargaining agreements pertaining to remuneration, human resource and transformation related matters. It also ensures the alignment of the College s human resource strategy to its strategic objectives. Page 30

31 A critical focus area of the committee is its contribution to performance-driven institution by ensuring that members of senior management lead by example in terms of their own performance on agreed deliverables. No significant challenges were experienced by the committee during Planning and Resource Committee The Committee has four ordinary meetings in a year. The Committee consists of three independent members of Council whom one is the Chairperson, and 10 members of senior and junior management. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Ordinary meeting 2 March June September November Special meeting Planning and Resource Committee primary purpose is to develop the College strategic plan for Council consideration, management and maintenance of college infrastructure. The committee finalised the 2017 strategic plan in November 2016 and was submitted and approved by the College Council and the Department of Higher Education and Training. It further monitored the implementation of the infrastructural developments and ensured that the college Management Information and IT systems were in good working conditions and at acceptable standards. Occupational Health & Safety was another portfolio that the committee continued to put its focused during the year under assessment. 5. ACADEMIC BOARD REPORT Purpose of the Academic Board: The Academic Board is a very important governance structure as it talks directly to the core business of the College that is Teaching and Learning. 1. The board promotes the participation of females and disabled students in the academic activities of the College 2. The board recommends to council academic plans including the teaching and learning plan Page 31

32 3. The board recommends new programmes/subjects that must be introduced by the college in line with the Program Qualification Mix. Plans of the Academic Board: 1. Teaching and Learning Plans 2. Academic Operational Plan 3. Academic year Plan 4. College Improvement Plan 5. Internal College Assessment Plan Frequency of the Academic Board meetings: The meetings take place at least four (4) times a year and in 2016 the Board had its meeting on: 24 February 18 May 16 August and 8 November Relationship to Council and SRC The Academic Board reports and makes recommendations to council on Academic matters of the College. The SRC seats in the board and is represented by the President and the Academic Officer on the Board. The SRC tables their reports in the Board on route to Council. The Board of the College consists of: The Accounting Officer The Deputy Principal (Academic) and any other Deputy Principal Nominated College lecturers Two members of council Members of the College SRC Any additional member as may be determined by Council These additional members are: Campus Managers Quality Manager Students Support Services Manager Page 32

33 Business Development unit represented by the Learnership Manager Programme Managers The accounting officer of the college shall serve as the chairperson of the board. The majority of the Board must be the college lecturers 6. STUDENT REPRESENTATIVE COUNCIL REPORT SRC is elected annually by the students and consists of 10 Members from Campuses who later elect 10 members to be in the institutional level. The Student Support Services Manager provides resources for a single process in all Campuses for free and fair electoral elections with external independent people doing the elections. The annual election takes place simultaneously in the beginning of the year. The SRC represents the interest of the students and remain accountable to the students body at large at Campuses and at institutional level. They ensures that regular feedback on the functioning of the SRC is provided per portfolio to the student body. They also liaise with SRC of other institutions of higher learning to promote common interest of students within organised student life. Academic officer and the President are designated to represent the students in the academic board and the President and the Secretary General represent students at the council level. Some of their responsibilities are that of establishing a platform for students to express their views and actively engage with the SRC on matters that interest them. They bring about unity within the Students, regardless of race, colour, greed and language. HIV/AIDS awareness are raised by them and some of the SRC Members are peer mentors at their Campuses and they mobilize students to be part of the Campaigns. They also promote women in leadership and honour female students contributions towards students governance. They also plough back to the community during Mandela day celebrations by visiting orphanages and old age homes. Page 33

34 PART D: FINANCIAL INFORMATION Page 34

35 1. REPORT OF THE ACCOUNTING OFFICER The inaugural external audit by the Auditor General of South Africa (AGSA) emphasised the fact that the college s financial health and proper financial management are in a critical condition and will require decisive intervention to improve to acceptable standards. The key-message was that proper governance and leadership must be seen as the fundamental prerequisite to turn around the prospects of the college. On the advice of the AGSA the following critical interventions are necessary for long term success: Creating and building a competent and skilful staff complement Clarify roles and responsibilities of every staff member and hold them responsible Ensuring tight internal controls are developed and implemented at all times Monthly routine procedures must be consistently applied Develop and implement an Audit Action Plan to address weaknesses The ultimate goal must be that the college shall be a going concern with long term prospects that will enable it to deliver on its reason for existence i.e. to offer quality education where students obtain a meaningful qualification that enables them to be employed. The oversight role of the College Council and its sub-committees as well as the executive role of the College management is acknowledged as the catalyst for the future financial sustainability of Vuselela TVET College. Page 35

36 2. REPORT OF THE AUDIT AND RISK COMMITTEE The Committee has four ordinary meetings in a year. It however could not meet its target as a result of lack of attendance of external members. Subsequent to that, new members were nominated and appoint to fully constitute the committee. It continues consists of three independent members of Council whom one is the Chairperson and three external members. Type of meeting Quarter 1 Quarter 2 Quarter 3 Quarter 4 Ordinary meeting 4 April Special meeting The primary purpose of the Committee is to: ensure the effective and efficient financial management and performance treasury functions of the college; ensure that all activities are within the delegations as given by EXCO and the Council; and plays an important role in making recommendations to the Council and other relevant authorities with regard to: Financial reporting to management and other users for such information; Risk management; Internal audit; Combined assurance; Internal control; Legal and regulatory compliance; and External audit. The committee could not fully execute its mandate as per the committee charter. The College did not have a functioning internal audit unit in 2016, however was outsourcing its internal audit functions. Both internal and external auditors have unrestricted access to the Committee, which ensures that their independence is in no way compromised. Page 36

37 3. AUDITED ANNUAL FINANCIAL STATEMENTS VUSELELA TVET COLLEGE Financial Statements for the year ended 31 December 2016 GENERAL INFORMATION Controlling entity Financial Statements relate to Domicile, legal form and jurisdiction Nature of business and principal activities Councillors Principal Acting Deputy Principal: Finance Department of Higher Education and Training (DHET) VUSELELA TVET COLLEGE The College is a Public Technical and Vocational Education and Training College, constituted in terms of the Continuing Education and Training Act No. 16 of 2006, as amended (CET Act), and operates within the Republic of South Africa. To provide continuing education and training to registered students for all learning and training programmes leading to qualifications or part qualifications at levels 1 to 4 of the National Qualifications Framework. 1. T. Ramphele [Chairperson] - Independent 2. M. Madiope - Independent 3. P. Ramlall - Independent 4. T. Ndebele - College appointed 5. P. Gaaname - College appointed 6. A. Naik - College appointed (Principal) 7. A. Nkomo - College appointed 8. T. Masemola - College appointed 9. J. Modise - College appointed 10. L. Gcwabe - Independent 11. L. Jackson - College appointed 12. K. Letshabo - College appointed 13. M. Sethusha - Independent 14. L. Gambu - College appointed 15. T. Mogatle - College appointed (SRC President) 16. D. Ntsitsi - College appointed (SRC General Secretary) A. Naik J. Hedding Page 37

38 VUSELELA TVET COLLEGE Financial Statements for the year ended 31 December 2016 GENERAL INFORMATION Registered office Business address 8 Bram Fischer Street Klerksdorp Bram Fischer Street Klerksdorp 2570 Postal address PO BOX Klerksdorp 2570 Bankers Auditors ABSA Bank Limited Nedbank Limited Auditor General of South Africa Page 38

39 VUSELELA TVET COLLEGE Financial Statements for the year ended 31 December 2016 INDEX These reports and statements comprise the annual financial statements presented for audit: Index Page Council's Responsibilities and Approval Report of the Auditor-General Statement of Financial Position 48 Statement of Financial Performance 49 Statement of Changes in Net Assets 50 Cash Flow Statement 51 Accounting Policies Notes to the Financial Statements ABBREVIATIONS AG ASB DHET GRAP SARS VAT CET Act CET Act Auditor General Accounting Standards Board Department of Higher Education and Training Generally Recognised Accounting Practice South African Revenue Services Value Added Tax CET Act No. 16 of 2006, as amended Continuing Education and Training Act No.16 of 2006, as amended Page 39

40 4. COUNCIL RESPONSIBILITY AND APPROVAL VUSELELA TVET COLLEGE Financial Statements for the year ended 31 December 2016 Council's Responsibilities and Approval The council is required by the Continuing Education and Training Act No. 16 of 2006, as amended, to maintain adequate accounting records and is responsible for the content and integrity of the financial statements and related financial information included in this report. It is the responsibility of council to ensure that the financial statements fairly present the state of affairs of the College as at the end of the financial year and the results of its operations and cash flows for the year then ended, in conformity with GRAP. The Auditor- General was engaged to express an independent opinion on the financial statements and was given unrestricted access to all financial records, related data and relevant parties. The financial statements have been prepared in accordance with the Standards of GRAP including any interpretations, guidelines and directives issued by the ASB and in the manner required by the Minister of Higher Education and Training. The financial statements are based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates. Council acknowledges that it is ultimately responsible for the system of internal financial control established by the College and places considerable importance on maintaining a strong control environment, which includes the safeguarding of assets and compliance with relevant legislation. To enable the council to meet these responsibilities, the council sets standards for internal control aimed at reducing risk in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting and other procedures, and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the College and employees and management are required to maintain the highest ethical standards in ensuring the college's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the college is on identifying, assessing, managing and monitoring all known forms of risk across the college. While operating risk cannot be fully eliminated, the College endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The council accepts its responsibility to ensure that the College is managed in a responsible manner, considering the interest of all stakeholders, including the DHET, unions, employees, students, local communities and creditors. Responsible management entails, inter alia, compliance with applicable statutory and regulatory requirements, including risk management. The council is of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements and that the financial statements are free from material misstatement, whether due to fraud or error. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit. Page 40