local government sector education and training...

LOCAL GOVERNMENT SECTOR EDUCATION AND TRAINING AUTHORITY

ANNUAL PERFORMANCE PLAN

FOR

2014/15

31 JANUARY 2014

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FOREWORD The Annual Performance Plan is a translation of the Strategic Plan into programmes that the LGSETA will implement in 2014/15, following a period of deep introspection. The LGSETA is an organisation in the process of rebuilding itself, from a difficult past, to a future characterised by relevance to our sector, more responsiveness to our clients, and excellence in everything we do. The organisation has begun to build internal capacity to meet and exceed the targets set out in this APP. This process of building capacity will include human, technological and all other capacity required to become a modern knowledge driven organisation. This will result in a more efficient organisation that is able to respond to its mandate, and align with the vision of the Minister of Higher Education & Training for the SETAs. The SETA will strengthen its research and sector skills planning capacity, better to respond to the call to be thought leaders, repertoires of information when it comes to skill matters in the local government sector. We will also build our project management capacity to ensure that projects are managed better, and that we minimise on expenditure that does not go to core activities of providing training to the sector. As the Accounting Authority I am committed to working together with the management of the SETA, all staff, our stakeholders, and all interested parties, to achieve the targets set out in this APP.

_____________________________ NQABA NQANDELA ACCOUNTING AUTHORITY 31 January 2014

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OFFICIAL SIGN-OFF It is hereby certified that this Annual Performance Plan:

Was developed by the management of the LGSETA under the guidance of the Administrator, Nqaba Nqandela

Takes into account all the relevant policies, legislation and other mandates for which the LGSETA is responsible

Accurately reflects the strategic outcome oriented goals and objectives which the LGSETA will endeavour to achieve over the period 2011 to 2016

_______________________ NQABA NQANDELA ACCOUNTING AUTHORITY 31 January 2014

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CONTENTS

PART A: STRATEGIC OVERVIEW ......................................................................................................... 5 1. UPDATED SITUATIONAL ANALYSIS .......................................................................................... 5 2. REVISIONS TO LEGISLATIVE AND OTHER MANDATES ....................................................... 18 3. OVERVIEW OF 2014/15 BUDGET AND MTEF ESTIMATES ..................................................... 19

PART B: PROGRAMME AND SUB-PROGRAMME PLANS ................................................................. 23

4. LGSETA PROGRAMMES .......................................................................................................... 23 PART C: LINKS TO OTHER PLANS ..................................................................................................... 35

5. LINKS TO THE LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANS ................. 35 6. CONDITIONAL GRANTS ........................................................................................................... 35 7. PUBLIC ENTITIES...................................................................................................................... 35 8. PUBLIC-PRIVATE PARTNERSHIPS ......................................................................................... 35

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PART A: STRATEGIC OVERVIEW 1. UPDATED SITUATIONAL ANALYSIS As a national public entity established in terms of the Skills Development Act (No. 97 of 1998), the LGSETA is mandated to promote skills development for the local government sector. It is a schedule 3A public entity and is accordingly subject to the prescripts of the Public Finance Management Act (“PFMA”) and applicable Treasury Regulations. The LGSETA, was relicensed by the Minister of Higher Education and Training, for the period of April 2011 to March 2016, to operate within the skills development framework articulated in the National Skills Development Strategy III (NSDS III) framework. Local government, including the local government water service delivery function, are at the forefront of developmental change in South Africa, and is increasingly the implementation sphere for national policy and service delivery. As such, local government should be a key driver of initiatives in support of an equitable and inclusive economy, and provide an enabling environment for economic growth, through effective planning (including Integrated Development Plans and local economic development strategies) and the provision and maintenance of infrastructure. The efficient provision of services at local level supports private investment and economic growth, in addition to the direct alleviation of poverty through the provision of free basic services. The following is a brief situational analysis, which the comprehensive situational analysis presented in the updated Sector Skills Plan. 1.1 KEY SECTOR DRIVERS OF CHANGE 1.1.1 Demographic Local government in South Africa is responsible for delivering basic services to communities, investing in and maintaining physical and social infrastructure, and promoting economic growth and poverty alleviation. Census 2011 data indicates that there about 51,7 million people in South African with the highest population in Gauteng Province (12,2 million), followed by KwaZulu-Natal (10,3 million) with the Free State and Northern Cape Provinces being the least populated with figures of 2,7 million and 1,1 million respectively.1 1.1.2 Social environment South Africa continues to be one of the most unequal societies with levels of poverty and inequality remaining high. Furthermore, the high unemployment rate which was estimated at about 30% in the Census 2011 findings saw more women being unemployed compared to men.2

1 Statistics South Africa, 2012. Census 2011: Provinces at a glance. Pretoria: Statistics South Africa 2 Statistics South Africa, 2012. Census 2011: Provinces at a glance. Pretoria: Statistics South Africa

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The Limpopo and Eastern Cape Provinces had the highest unemployment rates at 38,9% and 37,4% respectively. The average annual household income increased in South Africa from about R48 385 in 2001 to R103 195 in 2011 with Gauteng and Western Cape Provinces having average household income of R156 222 and R143 461 respectively.3 While Limpopo also saw an increase, it is significantly less at R56 841 in 20114 compared to Gauteng and the Western Cape. In terms of household services, there was a significant increase in the number of households with access to electricity for cooking, heating and lighting from 51,4% in 2001 to 73,9% in 2011.5 The proportion of households with access to refuse removal by their municipalities marginally improved from 57,0% in 2001 to 63,6% while the number of households with access to flush or chemical toilets increased from 53,8% to 62,6% with access to piped water significantly improved from 61,3% in 2001 to 73,4% in 2011.6 As such, local government will continue to play a significant role in reducing the levels of poverty through implementation of policies such as indigent policies as well as providing subsidised social infrastructure. This places additional fiscal pressure on local government given their mandate as well as other challenges such as ageing infrastructure and concomitant increases in population and dwellings. 1.1.3 Policy and legal environment The new Sector Education and Training Authorities (SETAs) Grant Regulations regarding skills development levies received by a SETA and related matters came into effect on 1 April 2013 as published in the Government Gazette No. 35940 of 3 December 2012. The new grant regulations came into effect on 1 April 2013. The new regulations allow for 10,5% of total levies paid by the employer to pay for SETA administration costs for the financial year of which 0,5% must be transferred to Quality Council for Trades and Occupations (QCTO). A further 20% of levy income is to be disbursed as mandatory grant to levy paying organisations that submit and obtain approval for their WSP and ATR submission with a further 49,5% allocated as discretionary grant to support sector skills development initiatives and interventions. The regulations indicate that at least 80% of discretionary funds are to be allocated to professional, vocational, technical and academic qualifications (PIVOTAL) that result in QCTO quality assured occupational qualifications training interventions. A maximum of 20% of the discretionary funds can be spent on other interventions in support of training such as research, stakeholder capacity building etc. The new regulations will have an impact on programmes. 3 Statistics South Africa, 2012. Census 2011: Provinces at a glance. Pretoria: Statistics South Africa 4 Statistics South Africa, 2012. Census 2011: Provinces at a glance. Pretoria: Statistics South Africa 5Statistics South Africa, 2012. Census 2011: Provinces at a glance. Pretoria: Statistics South Africa 6 Statistics South Africa, 2012. Census 2011: Provinces at a glance. Pretoria: Statistics South Africa

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The adoption of key strategic plans such as the National Development Plan 2030, the New Growth Path, IPAP II have broader impact on how the LGSETA responds in its facilitation of skills development in the local government sector. Furthermore, the government’s adoption of 18 Strategic Integrated Projects (SIPs), will also influence LGSETA’s skills development strategy over the next few years. It is also important for the LGSETA to contribute to the achievement of the vision of the draft Revised Capacity Building Framework for Local Government: 2012-2016 highlights of continuing the building the capacity of municipalities to deliver on their mandate. 1.1.4 Economic environment The performance of the economy has an important correlation to the financial viability of municipalities given the major sources of revenue that municipalities rely upon to deliver on their mandate. In terms of the economy, the gross domestic product (GDP) varies across municipality type and entity. Importantly though is the role that local government should play to create an enabling environment to facilitate greater local economic growth. The key levers that municipalities can use to facilitate greater economic development include the provision of sound socio-economic infrastructure such as roads, water and sanitation, electricity among others. As such, service delivery backlogs still facing many municipalities will have a significant impact on the municipalities’ ability to attract and retain business in its locale. It is for this reason among others that municipalities are focusing significant resources in strengthening economic infrastructure. 1.1.5 Technology The rate of technological change has an impact on every sector with others experiencing higher impacts than others. The world over, there are trends of greater connectivity, greater access to and between people with about 89% of South Africans in 2011. 7 A number of municipalities have already begun to embrace technology with citizens for example, able to pay their rates and taxes, submit paperwork among others. Furthermore, the issue of increasing broadband to support e-governance has seen several municipalities invest significant money into such infrastructure. Technology will have an impact on the future structure and form of local government and this directly has an impact on the type of skills required to meet the service delivery expectations of citizens. 1.1.6 Environmental factors and the sector The commitment by the South African government to move towards a low carbon economy over the next few decades should not be taken lightly as it does have significant impact on all sectors. This requires that municipalities ensure that future infrastructure investment is able to meet green standards. Furthermore, while the impact of climate change has not yet been fully assessed, it is broadly accepted that as part a municipality’s outlook, it will need to ensure that it is climate resilient.

7Statistics South Africa, 2012. Census 2011: Provinces at a glance. Pretoria: Statistics South Africa

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Various scenarios relating to climate change point to the reality that the impact of climate change in terms of temperature, rainfall patterns, and wind patterns will influence economic development in some sectors more than in other sectors. 1.2 PERFORMANCE ENVIRONMENT In 2005, the SETA was recertified with a reduced scope of coverage to only focus on local government. There are some instances where certain SIC codes are in two or more other SETAs’ scopes of coverage where the LGSETA will look to build partnerships to ensure greater delivery. In terms of Section 9 of the Skills Development Act of 1998, Table 1 is an overview of the scope of coverage of the LGSETA. Table 1. LGSETA scope of coverage SIC Code Main activity 50493 Any utility or agency, wholly or partially owned by a municipality providing local government services under

contractors or a municipality 91201 Category A municipalities: All functions, services and facilities provided by a metropolitan council as determined

by 84 (1): (2) and (3) of Act 117 of 1998 – Local Government Municipal Structure Act of 1998 91202 Category B municipalities: All functions, services and facilities provided by local council as determined by 84 (1),

(2) and (3) of Act 117 of 1998 - Local Government Municipal Structure Act of 1998 91203 Category C municipalities: All functions, services and facilities provided by a district council and district area

management as per Act 117 as determined by 54 (1), (2) and (3) of Act 117 of 1998 Local government Municipal Structure Act 1998

91204 Organised local government: a statutory or regulatory body assigned the function as per constitution of RSA, to deal with matters at an executive level within local government

91300 Local authority activities 91304 Municipal planning 91306 Billboards and the display of advertisements in public places 9130F Land use planning 93304 Social work in local governments 94001 Refuse and sanitation 94002 Health and community services 94005 Other community work in local governments 96001 Recreational, cultural and sporting activities by local governments 96331 Parks and gardens 96414 Local sports facilities 1.2.1 Employers in the sector There are 278 municipalities of which eight are metropolitan municipalities, 226 are local municipalities and 44 are district municipalities (see Table 2). The majority of employers in the sector are Category B i.e. local municipalities. However, Category A i.e. metropolitan municipalities are significantly the largest employers and contributors to skills development levies. As of 1 April 2012, there were 60 municipal owned entities established by municipalities to deliver services etc. in terms of the Municipal Finance Management Act (2004).

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Table 2 Municipality profile by Province and type, 2012/2013 Province Metropolitan

Municipality Local Municipality

District Municipality

Total

Eastern Cape 2 37 6 45 Free State 1 19 4 24 Gauteng 3 7 2 12 KwaZulu-Natal 1 50 10 61 Limpopo 0 25 5 30 Mpumalanga 0 18 3 21 North West 0 19 4 23 Northern Cape 0 27 5 32 Western Cape 1 24 5 30

Total 8 226 44 278 KwaZulu-Natal has the highest numbers of municipalities with 61, followed by Eastern Cape with 45 municipalities. While Gauteng had the lowest number of municipalities overall in 2012/13, three of the eight metropolitan councils fell within the province. In October 2013, the Demarcation Board announced the re-determination of municipal boundaries that will see the total number of municipalities decrease from the present 278 to 267 in 2016. Table 3 reveals the changes that are set to take effect in 2016. Table 3. Municipal redeterminations for 2016 Province Metropolitan

Municipality Local Municipality


Total

2011 2016 2011 2016 2011 2016 2011 2016 Eastern Cape 2 2 37 37 6 6 45 45 Free State 1 1 19 19 4 4 24 24 Gauteng 3 4 7 3 2 1 12 8 KwaZulu-Natal 1 1 50 43 10 10 61 54 Limpopo 0 0 25 25 5 5 30 30 Mpumalanga 0 0 18 18 3 3 21 21 North West 0 0 19 19 4 4 23 23 Northern Cape 0 0 27 27 5 5 32 32 Western Cape 1 1 24 24 5 5 30 30

Total 8 9 226 215 44 43 278 267 Source: Demarcation Board8 While the redeterminations are only set to become effective in 2016, the LGSETA will need to ensure that its data management systems would have the capacity to accommodate the transition period that would begin earlier.

8 Source: http://www.demarcation.org.za/uploads/Final%20redetermination%20media%20release_new.pdf

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Some municipalities establish municipal entities to deliver services. Such entities are accountable to the municipality that established them, and in terms of the MFMA, municipalities are responsible for the governance, financial accountability and performance of the entities established by that municipality. Some of the municipal entities have been transferred to other SETAs and as such only five entities submitted a WSP/ATR to the LGSETA in 2012/13. Table 4 presents a detailed levy income analysis by Province, municipality type and other entities allocated to the LGSETA. Table 4. Detailed levy income by Province and Municipality type, 2012/13

Province Metropolitan Municipality

Local Municipality


Municipal entity / agency

Other TOTAL

Eastern Cape

18 294 096,03 13 314 925,67 6 383 034,50 51 274,90 732 255,39 38 775 586,49

Free State 6 216 150,77

11 424 145,86

1 241 481,47

0.00 461 375,63

19 343 153,73

Gauteng 92 679 480,76

10 895 214,60

1 045 070,35

4 966 701,29

5 658 591,29

115 245 058,29

KwaZulu-Natal

37 487 738,45

22 826 945,07

7 383 044,37

0.00 946 906,57

68 644 634,46

Limpopo 0.00 15 395 709,10

5 800 086,55

20 010,24

620 089,85

21 835 895,74

Mpumalanga 0.00 16 488 113,30

1 312 834,88

0.00 47 785,21

17 848 733,39

North West 0.00 13 194 761,10

2 269 418,97

0.00 2 715 663,15

18 179 843,22

Northern Cape

0.00 8 586 040,18

1 121 810,62

0.00 59 417,14

9 767 267,94

Western Cape

44 972 915,26 19 599 694,14

2 710 187,46 129 576,06 287 998,27

67 700 371,19

Total R199 650 381,26 R131 725 549,02 R29 266 969,16 R5 167 562,49

R11 530 082,50 R377 340 544,45

Source: LGSETA The 12 municipalities in Gauteng contributed the most in terms of skills development levies with the three metropolitans' in Gauteng contributing about R92,7 million in 2012/13. KwaZulu-Natal, with 61 municipalities in the Provinces contributed about R68,6 million, marginally higher than the R67,7 million levy contributions from the 30 Western Cape municipalities in 2012/13. Municipalities in the Northern Cape followed by Mpumalanga Provinces had the lowest levy contributions in 2012/13. Collectively, the eight metropolitan municipalities contributed just under R200 million of the R377,5 million in levy income for 2012/13. A significant R11,5 million was contributed by entities in the ‘Other’ category – entities that implement or conduct local government related activities. The low number of municipal entities was reflected in the low levy income figure for 2012/13. 1.2.2 Employee profile The 97% submission rate of WSPs/ATRs in 2012/13 by municipalities and low submission rates by municipal entities requires that other credible sources of data be used to provide an estimate of the number of employees in the sector. To this end, the LGSETA made use of the statistics provided by Statistics South Africa in their annual “Non-financial census of municipalities” as they had a 100% response rate.

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The number of employees in the sector in 2008/9 was estimated to be 230 977 and increased to 241 715 in 2009/10 with further increases to 277 024 in 2010/11 with the 2011/12 figures at 284 990. Based on these figures, and data from the 267 WSPs/ATRs submitted, the number of employees in the sector in 2012/13 is about 245 000 employees (see Table 5) in the sector excluding figures from the 20 municipalities that did not submit and municipal entities. Using Stats SA figures, the estimated numbers and the trend of the number of employees increasing by about 10 000 year on year, the total number of employees in the sector was estimated to be about 295 000. Table 5. Employees by population group and gender, 2012/13

Province African Coloured Asian White Total

Female Male Female Male Female Male Female Male Female Male Eastern Cape 7 707 13 323 989 2 247 71 96 760 1 292 9 527 16 958 Free State 4 425 9 927 114 331 13 2 302 639 4 854 10 899 Gauteng 19 111 30 381 1 323 1 717 479 474 3 046 4 411 23 959 36 983 KwaZulu-Natal 11 163 20 223 545 648 1 844 4 457 783 1 289 14 335 26 617 Limpopo 5 246 8 856 17 173 6 6 158 363 5 427 9 398 Mpumalanga 4 434 8 196 81 83 33 23 217 368 4 765 8 670 North West 3 044 5 328 71 252 16 31 176 360 3 307 5 971 Northern Cape 1 571 2 588 1 084 2 114 4 7 128 208 2 787 4 917 Western Cape 7 815 10 459 10 240 17 671 394 422 3 784 4 993 22 233 33 545

Total 64 516 109 281 13 141 23 519 2 860 5 518 6 308 9 512 86 825 153 958 Source: 2012/13 Municipality WSP/ATR submissions Table 6 represents the approximately 245 0000 employees employed by 267 municipalities that submitted their WSP/ATR across the eight major occupation categories for 2012/13. Table 6. Employees by occupational category, 2012/13 Major OFO

Code Major Occupation Metropolitan

Municipality Local

Municipality


1 Managers 4 745 9 900 2 168 2 Professionals 15 626 6 000 1 990 3 Technicians and Trade Workers 19 152 8 100 3 865 4 Community and personal service workers 15 000 11 965 2 437 5 Clerical and administrative workers 20 850 10 235 2 162 6 Sales 13 530 3 650 675 7 Machinery operators and drivers 7 100 5 690 832 8 Elementary workers 31 270 39 600 5 400

Total 127 273 95 140 19 529 Source: 2012/13 Municipality WSP/ATR submissions The majority of the employees were employed in the elementary category across all three municipality types with local municipalities employing the highest number at 39 600.

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The second highest category of employment was in the clerical and administrative workers category with metropolitan municipalities having almost double the number of such employees compared to local municipalities. The 2012/13 WSP data indicated that the sector experienced a vacancy rate of about 14%. The sector recruited nearly 27 000 new employees, mainly below the age of 35 years in 2012/13. Many of the new recruits were employed mainly in the community and social services, administration, and finance sections respectively. However, about 13 500 employees, the majority being males, left the sector with an almost equal spread between the three age categories. Furthermore, just under 100 who left the sector were being People with Disability. The acquisition of critical skills in the sector is supported by the LGSETA through a combined approach of bursaries and internships, with mentoring and administration provided by the relevant professional bodies active in the sector. In support of the strategy to professionalise local government, bursaries have been offered to municipal employees who wish to study part time, allowing for professional registration in scarce skill programmes. Table 7 shows the qualifications profile by Province based on the 2012/13 WSP/ATR submissions. Table 7 Qualifications by Province and NQF level, 2012/13 WSPs Province Below

NQF 1 NQF

1 NQF

2 NQF

3 NQF

4 NQF

5 NQF

6 NQF

7 NQF

8 NQF

9 NQF 10

Not Known

Gauteng 1 899 1 891 3 148 3 729 12 108 6 404 7 117 4 431 1 890 335 60 17 278

Eastern Cape

1 563 1 853 3 298 4 144 5 164 3 164 2 508 1 017 343 170 21 307

Free State 635 781 2 198 2 013 2 513 745 877 197 51 7 1 99

KwaZulu-Natal

3 501 3 429 1 556 3 701 6 269 2 238 3 684 1 037 390 101 35 4 666

Limpopo 2 991 1 687 945 1 638 2 807 2 100 1 257 560 118 16 2 231

Mpumalanga 961 827 1 620 1 925 2 624 1 713 1 347 380 99 27 0 1 139

Northern Cape

520 326 736 863 1 455 682 320 95 36 24 54 202

North West 834 325 715 1 119 2 324 987 575 261 63 19 3 543

Western Cape

2 667 2 056 2 306 1 903 6 657 1 561 1 084 426 185 41 17 950

Total 15 571 13 175 16 522 21 035 41 921 19 594 18 769 8 404 3 175 740 193 25 415 Source: 2012/13 Municipality WSP/ATR submissions Based on the 267 WSPs/ATRs submitted, the qualification profile of those in the sector reveals that about 28 900 employees’ had a qualification at NQF Level 1 and below with about 118 000 employees with qualifications between NQF Level 2 and 6. While KwaZulu-Natal had the most employees with qualifications below NQF Level 1; it is Limpopo with the second highest number of employees with qualifications below NQF Level 1 that also according to Census 2011 had a significant number of its population with no schooling at 17,3%.9

9 Statistics South Africa, 2012. Census 2011: Provinces at a glance. Pretoria: Statistics South Africa

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In 2012/13, about 6000 (with an almost 50/50 split between females and males) interns where provided with structured work experience with less than 40 of the total being People with Disabilities. About 85 000 employees received training in 2012/13 of which 900 were People with Disabilities and less than 2000 received adult education and training. The sector estimated to provide training to about 10 000 employees in the scarce skills in 2013/14. About 120 000 employees are set to be beneficiaries of training in different learning interventions (skills programmes/PIVOTAL) that the LGSETA funds in terms of its strategic focus areas. The majority of these interventions have an NQF level of between three and eight. About 45 000 unemployed people are set to be beneficiaries of training mainly in skills interventions at the NQF level of 1 or 2 and between 3 and 8. In the local government sector, the Recognition of Prior Learning (RPL) is focused on assisting current municipal employees who have the requisite skills and practical experience to meet the qualifications criteria introduced and required by regulations, which are aimed at improving the quality of service in municipalities. In 2012/13, the LGSETA, in partnership with National Treasury, implemented RPL in relation to the minimum competency requirements for municipal finance officials, as well as with the Department of Water Affairs where water and wastewater process controllers were assisted with RPL registration requirements. It is anticipated that the sector will spend about R550 million training the unemployed. However, adult education training continues to be a challenge in the sector, with a small budget allocated. 1.2.3 Rural development and skills development The rural areas of South Africa (excluding commercial farms) are generally under traditional leadership. Traditional leaders are therefore central to leading any rural development initiative. Historically, the provision of skills development programmes are skewed towards urban areas. LGSETA provides incentives in the form of discretionary grants to rural municipalities to implement learnerships for unemployment citizens. The LGSETA discretionary grant focuses on the 108 rural and vulnerable municipalities as identified by DCOG during the LGTAS process, plus the 23 vulnerable districts as identified by Cabinet (SIPS 6 & 18) with particular respect to water and wastewater treatment operations through the provision of learnerships and skills programmes. In addition, LGSETA has established an office / operating site in Mopani South FET College (situated within Ba-Phalaborwa Municipality - Limpopo) to facilitate key skills development programmes aimed at providing capacity for rural development initiatives and projects.

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1.2.4 Support for FET Colleges and Municipal Training Centres

In an effort to re-establish municipalities as training environments, the LGSETA has embarked on a process of accrediting municipal training centres to offer mainly technical training and this is encouraging partnerships between municipalities and FET Colleges in fields of learning. The LGSETA accredited five Municipal Training Centres enabling them to offer fire and electrical training. Training Centres and decentralised Trade Test Centres were accredited by the SETA to ensure accessibility of Trade Testing for Municipal Officials. The LGSETA worked with several FET Colleges to address Local Economic Development training delivery and intends on collaborating with these tertiary institutions regarding programmes for artisans within and for the Local Government sector. To provide support to FETs the SETA embarked on a process of developing learning materials for Environmental Practices to standardise the delivery of training programmes. 1.2.5 Partnering with public higher education’s institutions The LGSETA collaborated with a number of higher education institutions on the direct delivery of high-level academic training required by the sector, predominantly in municipal finance and governance related training, engineering and urban planning. North West University; Stellenbosch, University of Fort Hare; Nelson Mandela Metropolitan University; and University of Pretoria are implementing municipal Finance Development Programme (Minimum Competency Training). The SETA has little interaction with public higher education institutions in the area of research. Going forward, the SETA will identify research partners to support its research agenda and plan. In 2012/13, some research was however, done by some organisations/researchers. The South African Cities Network (SACN) conducted impact assessment on the use of the mandatory grants by major cities. An additional four research studies were commissioned based on the data from the submitted WSPs and ATRs for 2012/13 where surveys were sent to municipalities and related stakeholders. The findings of these four studies are integrated in Chapter 4 of this updated SSP. The studies conducted are briefly explained below.

Adult education and training uptake in the local government sector: A study on adult education and training (AET) in the local government sector. The study was conducted based on the fact that AET has been identified as key for improving adult language and numeracy skills to enable access to additional training opportunities. Data from the WSPs and ATRs for 2012/13 suggests that whilst approximately 16 000 employees do not have an NQF Level 1 qualification, less than 2 000 employees participated in AET programmes. The survey was conducted to obtain feedback from employers, organised labour and training providers on the main reasons for low enrolment on AET programmes in the sector.

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The survey findings augment and build on another LGSETA study that was commissioned in 2006 and is an important study for the LGSETA to better understand and anticipate skills development needs for the employees employed in the sector.

Employee turnover and retention strategies in the sector: A study was conducted to obtain feedback from employers on the main reasons for voluntary resignations in the sector. Data from the WSPs and ATRs for 2012/13 suggests that about 5 500 employees of the 15 000 that left the sector due to voluntary resignations. The survey findings will be important for the employers and LGSETA to track turnover and retention trends to better understand and anticipate skills development needs for the sector.

Two tracer studies from a sample of employed beneficiaries and unemployed beneficiaries of LGSETA funded skills development interventions: The NSDS III emphasises the need for SETAs to conduct consistent monitoring and evaluation of skills development interventions.10 Telephonic interviews were conducted to collect information using a beneficiary tracer survey instrument using information available from LGSETA databases. The tracer survey mainly collected quantitative data but also provided the opportunity for some open-ended questions to be asked.

The following research themes/areas have been identified by the LGSETA for 2013/14 – 2014/15 financial years as informed by the SSP:

Impact assessments of skills development in the sector facilitated by the LGSETA;

Tracer studies of LGSETA-funded training/skills development beneficiaries; PIVOTAL skills interventions in the sector; Provincial skills development updates; Skills demand and supply modelling in the sector; Rural development and skills development; Adult Education and Training; Local government turnover and retention strategies; and Development of a perceptions index of young people’s perceptions of working

in local government as a career of choice. 1.3 ORGANISATIONAL ENVIRONMENT Changes in any of the factors briefly explained in 5.1 and 5.2 might present specific challenges and/or opportunities that the LGSETA must have the capacity and capability to respond to. This is particularly important given identified uncertainties such as policy/legislative changes as well as stakeholder/beneficiary skills development needs and expectations in an increasing resource constrained environment. 10 Source: http://www.dhet.gov.za/LinkClick.aspx?fileticket=WHM8cYAB0U4%3d&tabid=479&mid=1377

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1.3.1 LGSETA Governance On the 20 March 2013 the Director-General: Department of Higher Education and Training published Government Gazette No. 215 (Government Notice No.36276) in accordance with section 15(2) of the Skills Development Act in terms of which the LGSETA was placed under administration, as directed by the Minister of Higher Education and Training, in terms of section 15(1) of the Act, following serious governance and management failures. It is expected that the turnaround strategy of will among other issues, facilitate the process of repositioning the organisation to make it more relevant and responsive to the needs of the local government sector. 1.3.2 Institutional capacity The absence of a coherent communication strategy contributed to poor stakeholder relationship management as well as visibility of the LGSETA. Important mediums of communication available to the organisation have either not been fully exploited or integrated within the organisation. The out dated organisational website is indicative of the larger issues at hand. Consistent, coherent and timely communication is critical not only to inform stakeholders of the LGSETA’s programmes but will be critical to rebuild the organisation’s reputation in the SETA environment. An integrated strategy will be developed and implemented.

The LGSETA’s IT environment is characterised by the limited ability of the organisation to optimally function at the level that is required given the on-going technological changes. An IT and systems audit will be conducted with implementation recommendations provided to ensure seamless communication within and beyond the organisation. Furthermore, a stable IT platform will facilitate greater integration between the organisation’s Provincial offices and with the head office. In addition to a national office, the LGSETA has the following provincial offices tasked with implementing the programmes of the LGSETA:

Western Cape (Cape Town) Eastern Cape (East London) Northern Cape and Free State (Bloemfontein) Gauteng and North West (Johannesburg) Limpopo and Mpumalanga (Pretoria) KwaZulu-Natal (Durban)

The LGSETA currently faces major capacity constraints, this has had a negative impact on the organisation’s capability to deliver on its mandate, and strategic oriented objectives as set out in the strategic plan. Furthermore, while the LGSETA invested in a Performance Management System, this system was not implemented. Thus, employee motivation and career mobility has been negatively impacted as well as the LGSETA’s ability to attract top talent in the skills development talent pipeline.

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The repositioning the LGSETA aims to make it a SETA of operational and people excellence, characterised by the ability to attract top talent and retain key personnel and as a SETA that embraces modern people management practices and rewards performance a review will be conducted. The key focus areas are on organisational re-design and job analysis, learning and development – creating organisational capacity, recruitment and selection, performance management policy and procedure review and development, leadership development and change management, employee wellness as well as rewards and recognition. The stakeholders of the LGSETA (see Table 8) can influence or be influenced by the outcomes that the LGSETA sets to achieve by 2016. CATEGORY STAKEHOLDER

BOARD SALGA, COGTA, IMATU, SAMWU, Independent Members STAFF LGSETA Staff, Unions, Management, Administrator DIRECT DHET, Professional Bodies, SALGA, Unemployed Youth, Learners,

Municipalities/Entities, SAQA, Other SETAs, DHET, Relevant Government Departments, ETD Providers, ETD Practitioners, SA Cities Network, SDFs, Municipal Training Centres, QCTO, National and Provincial Houses of Traditional Leaders, National Treasury, DRMC, MISA, SDF, DBSA, Ward Committees, Traditional councils, Private Sectors, NGOs

SERVICE PROVIDERS Training providers, FETs, Higher Education Institutes, Mentors, Municipal Training Centres, Researchers, Assessors, Moderators, Verifiers, Evaluator, Coaches, Provincial Academies

ALLIANCE/ OTHER CONSTITUENTS

Professional Bodies, Private Sector, ETD Providers, Government Departments and Agencies, Other SETAs, DBSA, IMFO, SAICA, Universities, FET Colleges, AMEU, MISA, ESCA, National Treasury, Portfolio committee (Local Government, Higher Education and Training), Public Service Academy, NSA, Provincial Skills Development Forums (PSDFs), Provincial Training Academies, SALGBC (Bargaining Council), NEHAWU, Research Institutions, SACPVC, ECSA, South African Council for Property Evaluation Program, HRDC (PSSC).

Despite the challenges facing the organisation, the stage is set for the LGSETA to reclaim its position as an important facilitator of skills development in the local government sector. The LGSETA has, as a key strategic outcome, the development of a skilled and capable workforce supporting a responsive, accountable, efficient and effective local government system. To this end, the LGSETA has identified four pillars of excellence that will guide its transformation, overcome current challenges as well as exploit skills development opportunities that exist. These pillars of excellence are operational, people, innovation and governance excellence. In terms of operational excellence, the LGSETA will strive to become an efficient and effective organisation that is stakeholder-centric by establishing and implementing processes and systems that facilitate greater access, impact quality stakeholder experiences. The people in the LGSETA are critical to the emergence of a new LGSETA. In terms of people excellence, the LGSETA will empower its employees to embrace a culture of continuous improvement, high performance and engagement, service and accountability.

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Innovation excellence revolves around LGSETA becoming a responsive organisation that seeks to continually identify and facilitate skills development opportunities and interventions that address the diversity of the local government sector. The lack of sound, stable governance was a major factor in placing the SETA under administration. Moving forward to become a centre of excellence, the governance excellence pillar will focus on strengthening governance structures to ensure strategic intent alignment that facilitates sustainable access to skills development interventions for the sector. 2. REVISIONS TO LEGISLATIVE AND OTHER MANDATES The new Sector Education and Training Authorities (SETAs) Grant Regulations regarding skills development levies received by a SETA and related matters came into effect on 1 April 2013 as published in the Government Gazette No. 35940 of 3 December 2012. The new grant regulations came into effect on 1 April 2013. The new regulations allow for 10,5% of total levies paid by the employer to pay for administration costs for the financial year of which 0.5% must be transferred to Quality Council for Trades and Occupations (QCTO). A further 20% of levy income is to be disbursed as mandatory grant to levy paying organisations that submit and obtain approval for their WSP and ATR submission with a further 49,5% allocated as discretionary grant to support sector skills development initiatives and interventions. The regulations indicate that at least 80% of discretionary funds are to be allocated to professional, vocational, technical and academic qualifications (PIVOTAL) that result in QCTO quality assured occupational qualifications training interventions). A maximum of 20% of the discretionary funds can be spent on other interventions in support of training such as research, stakeholder capacity building etc.

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3. OVERVIEW OF 2014/15 BUDGET AND MTEF ESTIMATES 3.1 EXPENDITURE ESTIMATES – You will see some discrepancies due to other changes, but marginal about 3m

The budget information (Medium term estimate) is done on (cash/accrual) basis:

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Revenue Audited

Outcome Audited

Outcome Audited

Outcome

Revised Approved

budget Estimate

Revised Budget

Estimate

Revised Budget

Estimate

Budget

Estimate

R Thousand

Revenue

Tax revenue - - - - - -

Entity revenue 22 823 24 017 19 260 21 000 22 000 23 540 25 187,80 Sale of goods and services other than capital assets - - - - - - -

Of which:

Entity revenue other than sales 22 823 24 017 19 260 21 000 22 000 23 540 25 187,80

Fines penalties and forfeits 2 441 4 522 - - - -

Interest 20 382 19 495 19 260 21 000 22 000 23 540 25 187,80

Transfers received 272 092 355 006 395 333 422 650 452 235 483 891 518 186,37

Skills development (SETAS only) 272 092 355 006 395 333 422 650 452 235 483 891 517 763,37

Skills development levies 272 092 355 006 395 333 422 650 452 235 483 891 517 763,37

Admin - 10% 33 995 45 192 49 708 52 831 56 529 60 486 64 720,02

Employer grant fund levy - 20% 170 016 221 772 246 875 264 156 282 647 302 432 323 602,24

Discretionary grants - 50% 68 081 88 042 98 750 105 663 113 059 120 973 129 441,11

Total revenue 294 915 379 023 414 593 443 650 474 235 507 431 543 374,17

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3.2 RELATING EXPENDITURE TRENDS TO STRATEGIC OUTCOME

ORIENTED GOALS The new grant regulations will also see a reduction in mandatory grants. However, it is expected that the levy contributions will continue to increase in the medium-term. The following sections outline the expenditure trends for the four programmes that contribute to the achievement of the strategic outcome-oriented goals. Administration

Audited Outcome

Audited Outcome

Audited Outcome

Approved budget

Budget Estimate

Budget Estimate

Budget Estimate

2010/11 2012/13 2014/15 2015/16 2016/17 R’000 R’000 R’000 R’000 R’000 R’000 R’000

31,742.00 39,409.00 40,179.00 80,456.00 57,910.00 63,295.00 69,543.00 Administration expenditure in the financial years 2011 - 2013 remained within the regulated 10% as per SETA regulations. The current year factors in a number of un-common circumstances as the LGSETA was placed under Administration on the 20th March 2013. A number of interventions to change strategies, business processes and the entire organisational culture are currently being implemented within the LGSETA and thus, such change required an increased administration funding in order to re-establish the LGSETA administrative processes. The expenditure for the administration programme is projected to stay at the maximum of the regulated level as new personnel and systems are employed in the organisation. The medium term projections show an increase from R57, 9 million in 2014/15 to R69, 5 million in the last year of the MTEF. Sector Skills Planning

Audited Outcome

Audited Outcome

Audited Outcome

Approved budget

Budget Estimate

Budget Estimate

Budget Estimate

2010/11 2012/13 2014/15 2015/16 2016/17 R’000 R’000 R’000 R’000 R’000 R’000 R’000

34,122.00 49,206.00 19,856.00 59,600.00 4,000.00 4,340.00 4,709,00 Skills Sector Planning expenditure in the financial years 2011 - 2013 reported erratic expenditure trends where expenditure significantly increased in the financial year 2011/2012 and decreasing in the 2012/2013 financial year at a 60% decline. This was mainly due to an increase in projects within 2011/2012 and non-performance in projects within the 2012/2013 financial year. The significant decrease in expenditure from 2014/15 is due to consolidating all learning programmes expenditure within the Learning Programmes budget not as in 2013/14 where some learning programmes were implemented by the Sector Skills Planning Unit. Going forward, the LGSETA plans to refine its strategies, alignment to the NSDS III and government strategies for enhanced delivery of a skilled and capable workforce supporting a responsive, accountable, efficient and effective local government sector.

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Learning Programmes Audited Outcome

Audited Outcome

Audited Outcome

Approved budget Budget Estimate Budget

Estimate Budget Estimate

2010/11 2012/13 2014/15 2015/16 2016/17

R’000 R’000 R’000 R’000 R’000 R’000 R’000

68,646.00 65,546.00 41,395.00 374,974.00 234,850.00 257,470.50 285,965.00 Learning Programme reported a steady expenditure trend in the financial years 2010/2011 and 2011/2012 respectively; and reported a significant decrease in expenditure in the financial year 2012/2013 at a 37% decline. The LGSETA has since revised its strategy and is committed to significant development of the sector. Part of the large increase in the expenditure for the programme from 2013/14 into the medium term reflects the SETA’s support to the NSDSIII objectives which include a programme to refurbish the FET Colleges infrastructure. ETQA

Audited Outcome

Audited Outcome

Audited Outcome

Approved budget

Budget Estimate

Budget Estimate

Budget Estimate

2010/11 2012/13 2014/15 2015/16 2016/17 R’000 R’000 R’000 R’000 R’000 R’000 R’000

7,572.00 2,546.00 1,804.00 710.00 32,450.00 34,721.50 37,152.00 Although ETQA is an integral part of the LGSETA’s development strategy, it has recorded modest expenditure in the past. Expenditure is expected to increase significantly as the LGSETA develops the capacity to align its processes and systems to meet QCTO requirements, continues to develop QCTO-aligned qualifications, support RPL in the sector among other initiatives. 3.3 TRENDS IN THE SUPPLY OF KEY INPUTS The LGSETA had a total levy income of about R377,4 million in 2012/13. Increases in levy income to the LGSETA reflect annual salary increases for personnel, rather than significant increases in employment. High vacancy rates in the sector, and under-expenditure on salary budgets impacts on the LGSETA’s levy income.

Municipality type

2008/9

2009/10

2010/11

2011/12

2012/13

Metropolitan 116 036 447,36 135 357 168,73 176 516 880,34 175 508 991,03 199 650 381,26 Local 78 812 277,92 94 998 843,26 113 665 581,83 116 847 523,15 131 725 549,02 District 15 874 207,33 19 345 991,20 24 207 661,66 24 908 483,82 29 266 969,16 Municipal entity 2 576 720,66 2 762 820,32 4 006 898,74 3 635 681,31 5 167 562,49 Other 7 829 834,30 8 149 220,17 9 039 384,13 8 786 047,25 11 631 665,98

Total R221 129 487,57 R260 614 043.68 R327 436 406,70 R329 686 726,57 R377 442 127,92

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The levy income trend shows steady increases in levy income over the five years. Furthermore, the significant portion of the levy income comes from the eight metropolitan municipalities. There has been a steady increase in levy income from municipal entities over the five years with the exception of 2011/12, where the levy income declined but increased again in 2012/13. It is also important to indicate that on average, the LGSETA receives about R2 million in levy income that has no SIC allocation. The estimated levy amounts are reflected below:

Allocation 2013/14 estimate

R’000 2014/15 estimate

R’000 2015/16 estimate

R’000 SETA admin 52 831 57 910 60 486 QCTO admin 0.5% 2 642 2 826 3 024 Mandatory Grant 105 663 110 304 120 973 Discretionary Grant 261 515 279 821 299 409

SDL Total 422 650 452 236 483 892 LGSETA anticipates levy income of R450 million in 2014/15 with the amount set to continue increasing largely due increase in salaries rather than increase in number of people employed in the sector. 3.3 TRENDS IN NUMBERS OF KEY STAFF Major capacity constraints experienced by the organisation have negatively impacted on service delivery initiatives. The current approved organisation structure of the LGSETA cannot deliver on the mandate or its set objectives outlined in the strategic plan. Furthermore, the organisation had vacancies in the key positions of Chief Financial Officer, Corporate Affairs and the HR unit was only resourced by an Administrative Assistant. The new organisational structure is more aligned towards the mandate and strategy of the organisation. Significant implications – Headcount increase from currently 70 to approximately 100 (maximum capacity). There will be a significant increase in the salary bill from current the R1.8 million per month to over R4 million per month. However, a phased approach will be implemented with most urgent and critical positions filled within the 2013/14 year.

PART B: PROGRAMME AND SUB-PROGRAMME PLANS 4. LGSETA PROGRAMMES 4.1 STRATEGIC OBJECTIVES, PROGRAMME PERFORMANCE INDICATORS, AND ANNUAL TARGETS FOR 2014/15 4.1.1 PROGRAMME 1: ADMINISTRATION Purpose: To ensure overall strategic management and support for the SETA

Strategic objective Performance indicator

Target Audited/Actual Performance Estimated Performance

2013/14

Medium-term targets 2010/11 2011/12 2012/13 2014/15 2015/16 2016/17

Ensure an efficient, effective and transparent governance and management system

Implementation of approved policies, systems and processes

Approved and implemented management policies, systems and processes

Unqualified Audit Opinion

Disclaimer Audit Opinion

Qualified Audit Opinion

Full compliance 100% compliance 100% compliance 100% compliance

Compliance with statutory reporting and other requirements

Submission and approval of strategic plan and APP

Approved strategic plan and annual performance plan







Percentage compliance with human resources and performance management strategy

Skilled and capable workforce

100% compliance 100% compliance 100% compliance

Stakeholder satisfaction rating

Efficient and effective stakeholder engagement

1 survey 1 survey 1 survey 1 survey

Implementation of LGSETA management

Implement an integrated knowledge and information

20% 80% 100% 100%

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2013/14


information system

management system

Number of learners who receive the career guide

Increase awareness of local government careers

15000 18000 20000 22000

To ensure an effective, efficient and transparent financial and risk management system and internal control

Clean Audit Clean Audit Unqualified Audit Opinion



Clean audit Clean audit Clean audit Clean audit

Full compliance Implementation of approved finances policies, systems and processes

Unqualified Audit Opinion



Full compliance Full compliance Full compliance Full compliance

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4.2 PROGRAMME 2: SECTOR SKILLS PLANNING Purpose: To improve the local government sector’s capacity to identify the skills needs of the sector; and to plan, manage and report on appropriate responses to those needs Strategic objective Performance

indicator Target Audited/Actual Performance Estimated

Performance 2013/14


Facilitate and lead skills development and planning decision-making through sector research

Number of WSPs and ATRs submitted

100% 100% 100% 100%

Number of partnerships with research institutions / higher education institutions

Increase number of partnerships with research / higher education institutions

8 4 3

Number of research and impact studies conducted

2 5 8 12 15

Scarce and critical skills guide

1 1 1 1 1 1 1 1

Updated SSP Approved SSP Approved SSP update

Approved SSP update

Approved SSP update

Approved SSP update

Approved SSP update Approved SSP update

Approved SSP update

Number of SDFs trained in the OD-ETDP qualification

150 150 180 200 220

Number of SDFs trained

SDFs trained 318 508 400 450 480 500

Number of HRD and LLF training sessions

9 HRD 9 LLF

9 HRD 9 LLF

9 HRD 9 LLF

9 HRD 9 LLF

9 HRD 9 LLF

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4.3 PROGRAMME 3: LEARNING PROGRAMMES Purpose: To improve the skilled workforce available in, to and through the local government sector through facilitating the provision of quality training



2013/14


Coordinate the implementation of relevant programmes and projects to improve the skills of the local government sector

Number of officials trained in critical and scarce skills programmes

4650 4650

5000 skills programmes



3500 municipal learnerships



Number of AET learners

3000 3000 1500 employed 1900 unemployed 2100 unemployed

1500 unemployed 1900 unemployed 2100 unemployed

Number of e-AET programmes

1 1 3 5 10

Number of artisans enrolled

624 624 800

900

950

Number of artisan aides enrolled

180 180 200 250 280

Number of unemployed learners on scarce and critical skills

2250

2250 3500 skills programmes



3000 learnerships 3300 learnerships 3600 learnerships

Number of learners in workplace learning programmes

350 bursaries (unemployed) 100 bursaries (employed)

300 bursaries (unemployed) 100 bursaries (employed)

350 unemployed 150 employed

400 unemployed 200 employed

100 Internships 350 internships 400 internships 450 internships

1800 FET College work integrated




27



2013/14


learning placements

learning placements learning placements learning placements

400 HEI work integrated learning placement

600 HEI work integrated learning placement

700 work integrated learning placement

800 work integrated learning placement

Number of people trained in civic education / councillor training / ward education / community development worker training / training of traditional leaders

2500 2500 2500 2500

Number of cooperatives, NGOs, CBOs, SMMEs supported through skills development initiatives

5 5 50 70 90

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4.4 PROGRAMME 4: ETQA Purpose: To build an education and training provider system that better serves the needs of local government



2013/14


Ensure the development and delivery of quality programmes for the local government sector

Implementation of QCTO aligned QMS

QMS aligned to QCTO criteria, approved by QCTO

Revise QMS Implementation of QCTO aligned QMS



Number of QCTO qualifications developed and registered

7 1 4 10 5 5

Number of accredited training providers

300 (including FET, HEI and MTCs)





Number of MoUs with FETs, HEIs and MTCs

10 10

30 35

40

Number of learning programmes reviewed and approved

100

100

150

180

220

All providers monitored as per ETQA/QCTO requirements

Monitoring of 700 providers plus estimated 150 new providers (including FET, HEI and MTCs)

150 250 Monitoring of 700 providers plus estimated 150 new providers (including FET, HEI and MTCs)




Number of RPL implementation guidelines and tools developed and implemented

5 5 3 3 3

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2013/14


Number of Assessment/RPL centres established

New indicator 3 2 2

Number of RPL candidates assessed

1000 1000 1000 1000 1000

Number of learner achievements verified

7000 7000 7000 7000 7000

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4.2 LGSETA PROGRAMMES: QUARTERLY TARGETS FOR 2014/15

Performance indicator Reporting period

Annual target 2014/15

Quarterly Targets 1st 2nd 3rd 4th

Implementation of approved policies, systems and processes

Annually Approved and implemented management policies, systems and processes

100% compliance 100% compliance 100% compliance 100% compliance

Compliance with statutory reporting and other requirements

Annually 100% compliance 100% compliance 100% compliance 100% compliance 100% compliance

Percentage compliance with human resources and performance management strategy

Annually 100% compliance 100% compliance 100% compliance 100% compliance 100% compliance

Stakeholder satisfaction rating Annually 1 survey 1 survey Implementation of LGSETA management information system

Annually 100% 100%

Number of learners who receive the career guide

Annually 18000 4500 4500 4500 4500

Number of WSPs and ATRs submitted Annually 100% 100% - - - Number of partnerships with research institutions / higher education institutions

Annually 8 2 3 2 1

Number of research and impact studies conducted

Annually 8 2 2 2 2

Scarce and critical skills guide Annually 1 - - 1 - Updated SSP Annually Approved SSP update - - - Approved SSP update Number of SDFs trained in the OD-ETDP qualification

Annually 180 45 45 45 45

Number of SDFs trained Annually 450 450 - - - Number of HRD and LLF training sessions Annually 9 (1 HRD per province)

9 (LLF per province) 9 9

- - -

Number of officials entered on learnerships Annually 3500 1000 2000 1000 500 Number of officials trained in skills programmes

Annually 5000 1500 1500 1000 1000

Number of unemployed entered on learnerships

Annually 3000 1000 750 750 500

Number of unemployed trained in skills programmes

Annually 3500 1000 1100 1000 500

Number of AET learners Annually 3000 750 750 750 750 Number of e-AET programmes Annually 3 1 1 1 0 Number of artisans enrolled Annually 800 200 200 200 200

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Performance indicator Reporting period

Annual target 2014/15

Quarterly Targets 1st 2nd 3rd 4th

Number of artisan aides enrolled Annually 200 50 50 50 50 Number of unemployed learners awarded bursaries

Annually 300 300 - - -

Number of employed awarded bursaries Annually 100 100 - - - Number of unemployed on internships Annually 350 50 100 100 50 Number of FET College learners placed in work integrated learning programme

Annually 3000 500 1000 1000 500

Number of HEI graduates placed in work integrated learning programme

Annually 600 100 200 200 100

Number of people trained in civic education / councillor training / ward education / community development worker training / training of traditional leaders

Annually 2500 300 1000 1000 200

Number of cooperatives, NGOs, CBOs, SMMEs supported through skills development initiatives

Annually 50 15 15 10 10

Implementation of QCTO aligned QMS Annually Monitor implementation of QCTO aligned QMS

Monitor implementation of QCTO aligned QMS




Number of QCTO qualifications developed and registered

Annually 10 2 3 3 2

Number of RPL implementation guidelines and tools developed and implemented

Annually 3 2 1 - -

Number of Assessment/RPL centres established

Annually 3 2 1 - -

Number of RPL candidates assessed Annually 1000 200 300 300 200 Number of learner achievements verified Annually 7000 1500 2000 2000 1500 Number of accredited training providers Annually 300 75 75 75 75 Number of MoUs with FETs, HEIs and MTCs Annually 30 10 10 5 5 Number of learning programmes reviewed and approved

Annually 150 40 40 40 30

All providers monitored as per ETQA/QCTO requirements

Annually 900 providers (including FET, HEI and MTCs)

200 300 300 100

4.3 RECONCILING PERFORMANCE TARGETS WITH THE BUDGET MTEF

2010/11 Audited

Outcome

2011/12 Audited

Outcome

2012/13 Audited

Outcome

2013/14 Approved

budget

2014/15 Budget

Estimate

2015/16 Budget

Estimate

2016/17 Budget

Estimate

Rand thousand Programmes

Administration 31 742,00 39 647,00 45 592,00 48 328,00 50 504,00 53 510,00 57 255,70 Skills Sector Planning 66 463,00 81 370,00 88 560,00 94 962,00 101 785,00 109 036,00 116 668,52 Learning Programmes 168 928,00 206 816,00 225 091,00 241 362,00 258 704,00 277 133,00 296 532,31 ETQA 41 540,00 50 857,00 55 350,00 59 352,00 63 615,00 68 148,00 72 918,36

Total 308 673,00 378 690,00 414 593,00 444 004,00 474 608,00 507 827,00 543 374,89

Economic classification

Current payments 31 742,00 39 647,00 45 592,00 48 328,00 50 504,00 53 510,00 57 255,70

Compensation of employees 16 417,00 21 320,00 25 827,00 27 377,00 29 020,00 30 761,00 32 914,27 Salaries and wages 13 821,00 18 659,00 21 493,00 22 783,00 24 150,00 25 599,00 27 390,93 Social contributions 2 596,00 2 661,00 4 334,00 4 594,00 4 870,00 5 162,00 5 523,34

Goods and services 14 523,00 17 402,00 18 699,00 19 821,00 21 010,00 22 271,00 23 829,97 Of which 1

Agency and support / outsourced services - - - - - - - Communication 2 952,00 3 573,00 3 616,00 3 833,00 - - - Computer services 217,00 - 243,00 257,00 - - - Consultants 1 810,00 2 317,00 2 217,00 2 350,00 - - - Contractors - - - - - - - Inventory - - - - - - - Lease payments 2 078,00 2 521,00 2 495,00 2 645,00 - - - Repairs and maintenance 1 490,00 1 540,00 413,00 438,00 - - - Research and development - - - - - - - Training and staff development 185,00 399,00 198,00 210,00 - - - Travel and subsistence 1 774,00 2 834,00 1 574,00 1 669,00 - - - Other 4 017,00 4 218,00 7 943,00 8 419,00 21 010,00 22 271,00 23 829,97

Depreciation 802,00 925,00 1 066,00 1 130,00 474,00 478,00 511,46 Losses from - - - - - - -

Sale of fixed assets - - - - - - - Impairments and Adjustments to Fair Value - - - - - - -

Adjustments to Fair value of financial assets - - - - - - -

Impairments to non-financial assets - - - - - - - Other - - - - - - -

Interest, dividends and rent on land - - - - - - - Interest - - - - - - - Dividends - - - - - - - Rent on land - - - - - - -

Transfers and subsidies 276 931,00 339 042,00 369 001,00 395 675,00 424 105,00 454 317,00 486 119,19 Employer Grant (SETAs only) 110 340,00 126 180,00 108 991,00 117 464,00 126 420,00 135 794,00 145 299,58 Other government units 110 340,00 126 180,00 108 991,00 117 464,00 126 420,00 135 794,00 145 299,58

National government - - - - - - - Departmental agencies and accounts - - - - - - - Provinces - - - - - - - Municipalities 110 340,00 126 180,00 108 991,00 117 464,00 126 420,00 135 794,00 145 299,58

Public corporations and private enterprises (subsidies and other transfers) - - - - - - -

Public corporations - - - - - - - Private enterprises - - - - - - -

Households and non government units - - - - - - - Discretionary Grant (SETAs only) 166 591,00 212 862,00 260 010,00 278 211,00 297 685,00 318 523,00 340 819,61 Other government units 166 591,00 212 862,00 260 010,00 278 211,00 297 685,00 318 523,00 340 819,61

National government - - - - - - - Departmental agencies and accounts - - - - - - - Provinces - - - - - - -

33

2010/11 Audited

Outcome

2011/12 Audited

Outcome

2012/13 Audited

Outcome

2013/14 Approved

budget

2014/15 Budget

Estimate

2015/16 Budget

Estimate

2016/17 Budget

Estimate Municipalities 166 591,00 212 862,00 260 010,00 278 211,00 297 685,00 318 523,00 31 852,30

Public corporations and private enterprises (subsidies and other transfers) - - - - - - -

Public corporations - - - - - - - Private enterprises - - - - - - -

Households and non government units - - - - - - - Tax payment - - - - - - - Outside shareholders Interest - - - - - - -

Total Expenditure

Total Expenditure 308 673,00 378 689,00 414 593,00 444 003,00 474 609,00 507 827,00 543 374,89

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4.4 BREAKDOWN OF DISCRETIONARY BUDGET Programme / Project 2014/15 Target 2014/15

Budget (R’000)

Sector skills planning 8 research/impact studies 2 000 SSP Update 2 000

Career guidance 18000 guides disseminated 3 000 Learning Programmes for employed

3 500 municipal learnerships including among others: Road Construction Emergency services Disaster Management Urban and Regional Planning Local Government Accounting Certificate Local Government Advanced Accounting Certificate Environmental Practice Water Process Controllers OD-ETDP

56 000

5 000 Skills Programmes including among others: Performance management systems training Finance management minimum competency training Assessor training Management training Councillor training

25 000

Learning and skills programmes for the Unemployed

3 000 learnerships including among others: Water process controllers Environmental Practice Disaster Management Fire and rescue operations Electrical, Plumbing, Bricklaying New Venture Creation

90 000

500 skills programmes including among others: Computing skills Bricklaying Community House Building Tiling

17 500

AET 3 000 AET participants e-AET programmes

16 000

Artisan development 800 artisan learners 200 artisan aides

46 500

Workplace learning Work place learning 3 000 work integrated learning (FET College learners) 600 work integrated learning (HEI graduates) 350 internships

37 700

Bursaries 300 unemployed 100 employed

18 000

Civic education / councillor training

2 500 Ward Committee Training, CDW training, Councillor Training Traditional leader training

12 500

Cooperatives, NGO/CBOs, SMME, NLPE training support

20 NGOs/CBOs 20 Cooperatives 10 SMMEs

15 000

ETQA 32 450 Total 373 650

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PART C: LINKS TO OTHER PLANS 5. LINKS TO THE LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL

PLANS The LGSETA does not have a long-term infrastructure plan. 6. CONDITIONAL GRANTS This section is not applicable to the LGSETA. This section applies to Departments only. 7. PUBLIC ENTITIES This section is not applicable to the LGSETA. This section applies to Departments only. 8. PUBLIC-PRIVATE PARTNERSHIPS This section is not applicable to the LGSETA. This section applies to Departments only.

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