mqa 2011 stakeholder engagement presentation training providers... · mqa 2011 stakeholder...

ATP FORUM

27 MARCH 2018

OBJECTIVE

To inform and engage with stakeholders in the sector on key issues including amongst others:

1. DISCRETIONARY GRANTS ACHIEVEMENTS IN 2017-2018

2. DISCRETIONARY GRANTS TARGETS FOR 2018-19

3. DISCRETIONARY GRANTS APPLICATIONS FOR 2018-2019

4. NSDS III EXTENTION AND FUTURE SETA LANDSCAPE

ABRIDGED FINANCIAL REPORT (2016-2017) 2012-2013 Audited

(Unqualified)

2013-2014 Audited

(Unqualified)

2014-2015 Audited

Unqualified

2015-2016 Audited

(Qualified)

2016-2017 Audited

Unqualified

INCOMER Mill R Mill R Mill R Mill R Mill

Mandatory 492 287 244 242 243

Discretionary 204 492 593 625 614

Admin Income 98 115 124 129 132Skills development levy income 794 894 961 996 990 Investment income 25 30 45 50 57

Other income 4 0 0 0 1TOTAL INCOME 823 924 1 006 1 045 1 047

EXPENDITURE (793) (813) (1 017) (1 146) (1 162)

Administration (66) (89) (108) (122) (133)

Mandatory grants (WSP & ATR) (425) (230) (195) (187) (210) Discretionary grants & projects (302) (494) (714) (837) (819)

SURPLUS/ (DEFICIT) 30 111 (11) (101) (114) BEGINNING 387 417 528 517 417 END 417 528 517 417 302

COMMITMENTS (385) (678) (1 093) (1 215) (1 325) OVERALL SURPLUS /(DEFICIT) 32 (150) (576) (798) (1 023)

MQA DISCRETIONARY GRANTS BUDGET AND TARGETS The MQA has traditionally prepared its budgets based on Annual

Forecasted Revenue against Forecasted Expenditure. The MQA Budget Expenditure has always been higher than the expected MQA Revenue, i.e. Deficit Budgeting.

In the 2018/19 financial year the National Treasury has instructed

the MQA not to prepare a Deficit Budget and to: – Implement cost containment measures to reduce non-essential expenditure; – Significantly reduce discretionary grant commitments; – Explore other ways of operating efficiently.

In response to the above the MQA had to review some of the

discretionary projects, the review has seen some projects suspended for 2018-19. Targets and budgets for some projects were reduced

MQA PROJECTS SUSPENDED IN 2018-19 FY

Management Development project

Workplace Coaches Development project

HDSA Candidacy project

Maths and Science project

FLC project

Artisan aides project

DISCRETIONARY GRANTS Project Name: Learnerships (Non Artisan) Project Objectives: To enrol learners onto core Learnerships for the mining and minerals sector. Project Performance in current year and plans for next financial year

Current year Performance 2017-18 (As at 16 March 2018)

2018-19 Plans

Target Achievement Spend Target Budget Unemployed entered: 2400 Unemployed completed:500 Employed entered: 1500 Employed completed: 800 Learners completed through RPL: 200

Unemployed entered: 1553 Unemployed completed: 882 Employed entered: 969 Employed completed: 829 completed through RPL: 55

R 92 173 mil R 196 mil

Unemployed entered: 380 Unemployed completed: 550 Employed entered: 100 Employed completed: 900 completed through RPL: 20

R 105 488 mil

DISCRETIONARY GRANTS Project Name: Artisan Development Project Objectives: To facilitate and support the registration of new unemployed and employed learners on MQA artisan programmes Project Performance in current year and plans for next financial year


2018-19 Plans

Target Achievement Spend Target Budget

Entered : 1500 Completions: 1800

Entered: 1066 Completions: 1245

R 101 741mil R 293 603 mil


R 212 863 mil

DISCRETIONARY GRANTS Project Name: Work Experience Project Objectives: To support HET students with relevant work experience to pursue careers within the Mining and Mineral Sector. Project Performance in current year and plans for next financial year


2018-19 Plans




R 29 270 mil R 57 316 mil


R 50 138 mil

DISCRETIONARY GRANTS Project Name: Internships Project Objectives: To provide structured work experience to young unemployed graduates from HET institutions to complement qualifications in the scarce and/or critical skills required by the mining and mineral sector. Project Performance in current year and plans for next financial year


2018-19 Plans




R 54 737 mil R 129 504 mil

100 R 124 380 mil

DISCRETIONARY GRANTS Project Name: HDSA Candidacy Project Objectives: Project Performance in current year and plans for next financial year


2018-19 Plans


Entered: 100 Completion: 100


R 10 673 mil R 20 604 mil


R 9 400 mil

DISCRETIONARY GRANTS Project Name: OHS Representative Development Project Objectives: To train 40 000 OHS Representatives over five years as required by Mine Health & Safety Tripartite Leadership Summit Agreement signed on 5 September 2008. Project Performance in current year and plans for next financial year


2018-19 Plans




R 5 748 mil R 15 750 mil


R 2 950 mil

DISCRETIONARY GRANTS Project Name: Artisan Aides Employed Project Objectives: To facilitate and support the registration of 500 artisan aides (18.1) in a new financial year on MQA artisan programmes through the MQA 7 Step Artisan Development Process Project Performance in current year and plans for next financial year


2018-19 Plans


400 learners completing artisan aides programmes

276 R 1 680 mil R 8 325 mil

Suspended

DISCRETIONARY GRANTS Project Name: Adult Education and Training (AET) Project Objectives: To support employers to participate in AET training to progressively increase levels of literacy in the Mining and Minerals Sector. Project Performance in current year and plans for next financial year


2018-19 Plans


Entered: 4700 Completion: 2500


R 7 715 mil R 25 400 mil

820 completed R 8 850 mil

DISCRETIONARY GRANTS Project Name: FLC Grant Incentive Project Objectives: To support employers to enrol 250 learners on FLC training to progressively increase levels of literacy in the Sector. Project Performance in current year and plans for next financial year


2018-19 Plans


280 learners completed

281 R 390 000

R 1 650 mil

Suspended

DISCRETIONARY GRANTS Project Name: Management Development Programme Project Objectives: To provide adequate leaders within the mining and mineral sector, increase the efficiency of performance of existing executives and train managers for higher assignment who show potential for growth within mining operations Project Performance in current year and plans for next financial year


2018-19 Plans




R 4 700 mil R 11 580 mil

80 R 4 200 mil

DISCRETIONARY GRANTS Project Name: Workplace Coach Development Project Objectives: To benefit formalised transfer of knowledge and skills to learners( graduates on management training. The identified coach will coach and mentor the learners on technical and/or managerial aspect of daily work. Project Performance in current year and plans for next financial year Project Performance in current year and plans for next financial year


2018-19 Plans


50 Coaches supported

18 R 4 305 mil R 12 600 mil

Suspended

DISCRETIONARY GRANTS Project Name: HET Lecturer Support Project Objectives: To support universities with the development of lecturers, to achieve the employment equity and transformation within the faculties or departments of Mining, Mine Survey and Geology. Project Performance in current year and plans for next financial year


2018-19 Plans


30 Lecturers supported

31 R 6 126 mil R 17 900 mil

30 R 9 000 mil

DISCRETIONARY GRANTS Project Name: TVET College Support Project Objectives: To facilitate and support the placement of qualified TVET Colleges NVC learners with host companies for them to become qualified artisans Project Performance in current year and plans for next financial year


2018-19 Plans




R 20 324 mil R 53 588 mil


R 49 750 mil

DISCRETIONARY GRANTS Project Name: Bursaries Project Objectives: To create a pool of HET graduates to pursue careers within the Mining and Mineral Sector. Project Performance in current year and plans for next financial year


2018-19 Plans




R 59 200 mil

R 159 485 mil


R 153 359 mil

DISCRETIONARY GRANTS Project Name: Maths & Science Project Objectives: To support Grade 10, 11 and 12 Maths & Science learners to achieve good maths and science results that will allow them access to HET institutions to enrol on mining and minerals related qualifications. Project Performance in current year and plans for next financial year


2018-19 Plans


1200 learners supported

0

R 6 256 mil R 11 700 mil

Suspended

DISCRETIONARY GRANTS Project Name: Mine Community and Retrenchees Support Project Objectives: To facilitate and support the training of mine community members on skills to make communities sustainable Project Performance in current year and plans for next financial year


2018-19 Plans




R 41 539 mil R 98 284 mil


R 25 556 mil

MQA Funding Policy

The funding policy for 18-19 financial year has been approved by MQA

board and will be available on MQA website by 29th March 2018

Discretionary Grants Applications

The application window for 2018-2019 discretionary grants

applications opened on 27 November 2017 and closed on 31 January

2018

Discretionary Grants Allocations

Currently processing the applications received

Feedback will be provided to employers by March-April 2018.

MQA FUNDING POLICY AND DG APPLICATIONS 2018-19 FY

Allocation Criteria

The employer has to submit a WSP and ATR as per the MQA

requirements to qualify for PIVOTAL grant. Companies employing less

than 50 employees will not be required to complete the prescribed

PIVOTAL training plan and report, but will be asked to provide

information on participation in PIVOTAL programmes and the impact of

these programmes;

Levy paying employers - up to date with levy payments

Past performance of employers in implementing MQA discretionary

grant projects may be used to make decisions on allocation of

discretionary grant

MQA DISCRETIONARY GRANTS ALLOCATION CRITERIA

Allocation Criteria

Non artisan Learnerships, artisan aides and OHS programmes - The

employer must utilise MQA accredited training provider who has the

capacity and resources to conduct training.

MQA reserves the right to limit allocations for certain disciplines as

aligned to the Sector Skills Plan

Allocation for artisan project will require the employer to be workplace

approved for the site in which the Work Integrated Learning is to be

conducted

MQA may conduct due diligence audits before or after allocation of

discretionary grants (this may be desktop or physical).

MQA DISCRETIONARY GRANTS ALLOCATION CRITERIA cont

Due diligence audits will include but not limited to the verification of the

following:

Site where the Work Integrated learning will be conducted

(infrastructure and human resources)

Validity of Service Level Agreements signed with employers

Approved work places

Conflict of interest issues

Previous performance on discretionary grants

Conduct of corrupt activities

Up to date with levy payments

Conduct tax compliance checks as per National Treasury Instruction No

3 of 2014/2015 Tax compliance measures for persons conducting

business with the State.

DUE DILLIGENCE

PROPOSED NEW SETA LANDSCAPE Key comparisons between NSDS 111 and the NSDP?

KEY FOCUS NSDS III NSDP

Life Span In terms of SETAs, 5 year life span –

licenses granted for the duration

Unlimited life span

Less uncertainty issues

Presupposes the continued role of SETAs

Focus More focused on strategic issues on

how to address skills development

challenges in all key sectors of the

economy

More strategic but also operational as it outlines all

mechanisms, priorities and outcomes that needs to be

attained. It also addresses challenges such as governance,

complicated administrative systems experienced by SETAS

Quality

Assurance

Function

SETAs exercised the function of quality

assurance mainly to accredit training

providers, ensure compliance through

monitoring and evaluation of training

provision and register assessors

• According to White Paper (PSET), SETAs and NAMB

will be responsible for QA related matters that only

pertains to workplace.

• The QA function will be integrated into QCTO to

consolidate its role and ensure provision of quality

occupationally directed programmes.

• Cost implications include the review of funding allocation

of skills levy which means reduction of funding in line

with reduced functions. This process is subject to

business case analysis to be carried out to clarify this

issue. In this context, SETAs might fulfill delegated

limited QA function which will be phased out from 2020



Monitoring and Evaluation Performance of SETAs was mainly

based on a quantitative approach

which was target driven in a such

a way that performance was mainly

based on reaching targets with little

considerations on making

meaningful impact to skills

development in respective sectors

Performance is based on attainment of

outcomes and impact within the sector. This

means measures will be put in place to monitor not

only attainment of targets but also consider a

qualitative approach to assess the extent of

achievement of outcomes and efficacy of skills

interventions in the broader context of the

objectives National Development Plan and other

related policies

Shared Services Model SETAs to set up their own systems

(HR, IT and regional offices) to

facilitate sector transformation

through skills development

A new model of shared services in which SETAs

will share resources such as HR, IT and regional

offices to ensure better resource utilization to

achieve economies of scale through reduction of

administrative costs. A process of business case

analysis will be undertaken to inform the scope of

such services as well the quality assurance

arrangements

PROPOSED NEW SETA LANDSCAPE Key comparisons between NSDS 111 and the NSDP? KEY FOCUS NSDS III NSDP

Partnerships • Encourage integration between

PSET system and the world of

work to meet local, regional

and national needs. Workplace

experience remains a

challenge

• SETAs, NSA, NSF and

QCTO were responsible for

specific tasks in the greater

scheme of skills development

with little coordination of

interventions and which led, to

some extent development of

silo mentality with resultant

duplication of efforts

• Foster stronger and closer cooperation between PSET

institutions and industry (curriculum design, delivery,

review) to ensure relevant and responsive qualifications to

meet individual, employer needs and broader development

societal needs

• To rationalize the system to ensure coherence across the

institutional skills development landscape by streamlining

the structures and the processes to reduce overlaps, ensure

better use of resources and achieve economies of scale

and collaboration. DHET to assume the role of bringing the

all partners into a skills development systems that is

integrated to inform better planning, funding, monitoring and

evaluation and reporting on the systems

• For SETAs it is necessary to intensify efforts for

partnerships, this demands reconfiguration of partnerships

and maximization of value going forward



Accounting:

Planning and

Reporting

In terms of planning,

reporting the current

planning cycle requires

SETAs to reports to the

Executive Authority

(DHET) in line with the

SSP framework

requirements

• In the new dispensation, the planning cycle will be aligned with the

overall planning cycle with particular focus on medium-term strategic

framework (MTSF), five year planning and Medium Term Expenditure

Framework METF) identifying priorities and outcomes, three year budget

cycle reflecting expenditure.

• The implications is that SETAs are expected to establish five year

priorities against defined outcomes, a three year budget against this plan

and submit APPs in line treasury regulations such as PFMA

• Institutional SETA performance management falls under DHET as well

as NSA to track the efficiency, effectiveness and impact of the work

done by SETAs. This means rigorous performance reviews will be

conducted on the SETAs on annual basis and de-establishment of the

non-performing SETA.

• Increased standardization of procedures and processes with regard to

SETAS function on occupational needs, awarding of grants, working with

branches within DHET, issuing of proposals for 3 year qualifications to

allow DHET to monitor progress and performance as well a

consequence management plan



Funding • Individual application systems for

services providers, training

providers (public and private) to

access for funding

• An investigation into to centralization of application

system for funding to promote priority programmes with

wider objectives, to improve the quality of learner data

system through development of solid data management

system which critical and necessary to be linked to

improvements made across DHET

• To ensure increased efficiency and effectiveness in a

manner that is consistent with principles of accountability

DHET intends to put in place a mechanism that ensures

that all eligible employers pay levies and see value.



Levy

Distribution

• 20% go to NSF

• 20% go to Mandatory Grant

• 49.5 % go to Discretionary Grant of which at

least 80% is allocated towards PIVOTAL

programmes (approximately 10% non Pivotal

and 40% pivotal programmes)

• 10% is allocated for SETA administration

• 20% of levy paid go to SETAs

• 10% of levy paid cover administrative costs of

SETAs to for organizational stability of which

1% will to the shared services

• 0,5 % allocated by SETAs to QCTO for QA

function of intermediate, vocational and

occupational programmes

• 49,5 % will go to SETA for a wide range of

programmes that support economic growth, job

creation and enable social development

• 20% will to NSF to fund programmes that seek

to address challenges faced by the poor

(historically marginalized and disadvantaged)

• 49,5 % will go to SETA for a wide range of

programmes that support economic growth, job

creation and enable social development

• 20% will to NSF to fund programmes that seek

to address challenges faced by the poor

(historically marginalized and disadvantaged)

PROPOSED NEW SETA LANDSCAPE Key comparisons between NSDS 111 and the NSDP? KEY FOCUS NSDS III NSDP

Other

Responsibilities

and Roles

• SETA responsible for

development of

learning programme

and accreditation of

training providers,

• Undertake Individual

and sectoral analysis

of workplace data to

have an understanding

of skills needs and

priorities in the sector

of focus

• Awards of grants was

the prerogative of

individual SETA

• SETAs are responsible for coordinating efforts to meet supply

needs

• This responsibility will fall under the remit of DHET which intends to

consult with quality councils such as CHE and QCTO, Universities

to ensure a more responsive curricula

• Centralized system of analysis of workplace data to take into

account wider objectives of economic growth, employment creation.

• The implications is that the analysis of workplace data is being

taken away from units within SETAs as the responsibility will lie with

DHET. Nevertheless, SETAs are expected to only collect data

from workplace skills plans/ATRs. SETAs will play a critical role in

encouraging partnerships between PSET institutions and

workplace, public and private partnerships

• Awards of grants will be centralized within DHET to increase

efficiency and effectiveness

THANK YOU!

Ke yaleboga!

Ndiyabulela!

Ke a leboga!

Ndiyabonga!

Ke a leboha!

Ndikhou livhuha!

Dankie!

Ngiyathokoza!

Ngiyabonga!

Inkomu!

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