2010/2011 - Data worldwip.dataworld.co.za/chieta_new/2011/November 21/CHIETA ANNUA… · 2010/2011,...
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Vision
World-class education and training for the Chemical Industries Sector
Mission
The CHIETA contributes to sustainable development through facilitating the provision of skills for the growth in the Chemical Industries Sector
Blade NzimandeMinister of Higher Educationand Training
“SETAs are determined to turn their organisations into effective components of an integrated and successful post-school system. The measures we have taken are a giant step forward in
the transformation of the South African skills-development system” – May 2011 Budget Speech
CHIETA ◊ Annual Report 2010 – 2011
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ABET Adult Basic Education and Training
AIDS Acquired Immune Deficiency Syndrome
ASGISA Accelerated and Shared Growth Initiative of South Africa
ATR Annual Training Report
CBO Community-Based Organisation
CHIETA Chemical Industries Education and Training Authority
CISGB Chemical Industries Standard Generation Body
CPUT Cape Peninsula University of Technology
BRF Broad Regional Forum
DG Director-General
DHET Department of Higher Education and Training
DoL Department of Labour
DME Department of Minerals and Energy
DMU Data Management Unit
DST Department of Science and Technology
DTI Department of Trade and Industry
DTTC Decentralised Trade Test Centre
DUT Durban University of Technology
EEA Employment Equity Act
ETDQA Education Training and Development Quality Assurance
ETQA Education and Training Quality Assurance
FET Further Education and Training
GMET Generic Manufacturing Engineering and Technology
HDSA Historically Disadvantaged South African
HIV Human Immunodeficiency Virus
HRD Human resource Development
ISOE Institute for Sectoral and Occupational Excellence
JIPSA Joint Initiative for Priority Skills Acquisition
KAP Key Agricultural Producers
LED Learnership Education and Training Development
Glossary of Terms
MoA Memorandum of Agreement
MoU Memorandum of Understanding
MTA Manpower Training Act
NGO Non-Governmental Organisation
NQF National Qualification Framework
NMMU Nelson Mandela Metropolitan University
NSDS National Skills-Development Strategy
NSF National Skills Fund
OG&CM Oil, Gas and Chemical Manufacturing
PSDF Provincial Skills-Development
Forum
PST Provider Support Team
PFMA Public Finance Management Act
QALA Quality Assurance of Learner Achievements
QCTO Quality Council for Trades and Occupations
RCC Regional Co-ordinating Committee
RSA Regional Skills Advisor
RPL Recognition of Prior Learning
SABS South African Bureau of Standards
SAOGA South African Oil and Gas Alliance
SAPC South African Pharmacy Council
SAPIA South African Petroleum Industry Association
SAQA South African Qualification Authority
SDA Skills-Development Act
SDLA Skills-Development Levies Act
SDC Skills-Development Committee
SDF Skills-Development Facilitator
SEDA Small Enterprise Development Agency
SETA Sector Education and Training Authority
SLA Service Level Agreement
SME Subject Matter Expert
SMME Small Medium and Micro Enterprises
SSP Sector Skills Plan
WSP Workplace Skills Plan
WSU Walter Sisulu university
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Contents
Glossary of Terms ____________________________________________2
Chairperson’s Report __________________________________________4
Chief Executive Officer’s Report _________________________________6
The Operations Business Unit ___________________________________9
ETDQA ___________________________________________________10
List of CHIETA Qualifications and Learnerships as at April 2011 ____13
Learnerships at Higher Education — Co-operative Education _______17
Research and Skills Planning __________________________________18
Regions ___________________________________________________19
Stakeholder Relationship Management ___________________________25
Grants Management _________________________________________26
Governance and Support Services Business Unit ___________________31
Human Resources ________________________________________32
Data Management ________________________________________34
Service Level Agreement (SLA) with the DoL and DHET _____________36
Finance Business Unit Report __________________________________46
Report of the Audit Committee _________________________________50
Report of the Auditor-General __________________________________52
Annual Financial Statements for the year ended 31 March 2011 _______56
Report of the Accounting Authority ______________________________57
CHIETA Governing Board 2011/2012 ____________________________62
Materiality and Significance Framework _________________________100
CHIETA ◊ Annual Report 2010 – 2011
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Chairperson’s Report
Jan SmitActing Chairperson
The 2010/2011 fi nancial year was a busy one for the CHIETA. We successfully addressed the challenges of skills-development and made great strides in all areas of training, including apprentice training. Our focus is and always will be to train our workforce in the chemical industries sector to become highly-skilled and competent and to ensure that the training needs of both the industry and labour are met, and exceeded.
The CHIETA in the year under review built strong partnerships across many communities of practice including higher-education institutions and FET colleges, universities and workplaces. We have also afforded opportunities for integrated learning and workplace experience to graduates and undergraduates in our quest to close this glaring gap in the skills training arena. It was pleasant and satisfying to experience CHIETA as an organisation re-focusing and aligning their priorities and processes in optimal support of the new delivery areas defi ned by the Department of Higher Education and Training (DHET).
While the dedicated CHIETA staff made all the gains refl ected in this annual report for 2010/2011, the CHIETA also had its fair share of challenges and it is common knowledge that the CHIETA experienced problems during this period, which resulted in changes being made at senior-management level. The governing board appointed Ms Ayesha Itzkin, the CHIETA’s ETDQA Executive Manager of eight years, to function as Acting
“The CHIETA is proudly looking forward to a new and exciting era.”
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CEO from 23 March 2011 onwards to ensure direction and stability during the current important organisational phase of NSDS III transformation. On a broader organisational level, the dedication and competence of CHIETA staff members is essential to sustain a high standard of service delivery to our stakeholders during this challenging period.
While the CHIETA rounded up NSDS II, our staff had already put in place measures to take forward NSDS III, as reflected in the CHIETA’s Strategic Plan approved by Parliament on 9 March 2011.
NSDS III will become real and implementable as from 1 April 2011. The CHIETA is proudly looking forward to a new and exciting era that this will usher in – the important delivery areas of NSDS III – to ensure our added value to the continued improvement of our young democracy. Under the leadership of Higher Education and Training Minister, Dr Blade Nzimande, the CHIETA will follow boldly, and function as the benchmark SETA, guided by the new governance and performance frameworks from the DHET.
The CHIETA’s Governing Board is therefore appreciative of the oversight role of the DHET in the future, which will ensure good governance and performance-based delivery to address national strategies such as the environmental strategy; the rural development strategy; the Industrial Policy Action Plan; and other key legislation now factored into skills-development. The CHIETA welcomes this expanded vision and I am confident that the new Governing Board will live up to the new and exciting challenge.
I want to make use of this opportunity to extend my appreciation to the hard working CHIETA staff, all the governing board members, all the stakeholders – both business and labour, and our principles in government for your support, guidance, wisdom and leadership during the 2010/2011 financial year.
I would also like to welcome the incoming governing board of the CHIETA. I am confident that you will be presiding over the CHIETA on its way to becoming the benchmark SETA in South Africa. Good luck and God Bless. Enjoy this Annual Report – take the time to read it. It is worth it!
Jan Smit
Acting Chairperson
CHIETA ◊ Annual Report 2010 – 2011
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Chief Executive Officer’s Report
Ayesha ItzkinActing Chief Executive Officer
It gives me pleasure to provide you with feedback regarding the implementation of the last year of the National Skills-Development Strategy II in 2010/2011. Once again, the CHIETA is proud to showcase the great in-roads our SETA has made with our stakeholders in terms of skills training in the chemical industries sector. We have succeeded in fulfilling our skills-development mandate, despite experiencing a turbulent year. We are pleased to report that the CHIETA staff and stakeholders have again excelled, and we can report successes to be proud of.
Our SETA is charged with developing the South African workforce across the following five main areas of production, related to the CHIETA’s five chambers: Base Chemicals and Petroleum; Speciality Chemicals and Surface Coatings; Explosives and Fertilisers; Pharmaceutical and Chemically-Related Consumer Goods and Glass. The list of qualifications relevant to these sectors which are accredited by the CHIETA and quality assured by the ETDQA Department, is published on page 15.
In the reporting period 2010/2011, the CHIETA awarded certificates across a range of qualifications to a total of 2 500 learners. We continued to strengthen the CHIETA’s two- Apprentice Training System to highly-skilled artisans and addressing the shortage of these priority skills in our country. This was also the focus of Higher Education and Training Minister (DHET), Dr Blade Nzimande. The CHIETA has put in place one of the best systems for recognition of prior learning (RPL) of competent persons through the section 28 project (refer to page 12).
The CHIETA has expensed 83% of its mandatory grant levy income received to levy paying companies submitting workplace skills plans and education and training reports
“This substantially greater than inflationary increase without a corresponding increase in the number of levy contributing organisations is pervasive in confirming the impact of the CHIETA in enhancing the skills levels and creating employment in the chemical sector.”
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during the financial year ended 31 March 2011. The total employer grants and project expenses for the period accounted for 92% of the skill development levy income received for grants and projects as per the skills development legislation. Since the inception of the CHIETA in 2000, we have achieved an average disbursement rate of employer grants and project expenses of over 90% in comparison with skills development levy income received during the eleven year period.
Despite the governance-related challenges that our SETA faced, I am proud to say that with the support of our Governing Board and the DHET, we have explained all areas of concern to the Auditor-General. The CHIETA submitted all its skills training- related monitoring reports, which were of acceptable quality and on time.
Primary interventions were made to identify and mitigate risks going forward supported by a sustained governance framework and quality assurance of the CHIETA risk-management profile which was supported by the CHIETA’s Internal Auditors. All CHIETA business units and staff members were involved in the process to ensure individual and collective ownership in the organisation. The development and anticipated finalisation of a comprehensive CHIETA Legal Compliance Register will also stand us in good stead in sustaining and improving the CHIETA’s compliance profile. In conjunction with the Internal Audit team as a key business partner of management, we saw sustained improvement of internal controls which were reflected in the various Internal Audit Reports for the year under review, strengthening our stakeholder confidence.
Stakeholders’ participation through our Chambers was identified in 2010/2011 as an area that required interventions to ensure that the role of the Chambers, as identified in the new CHIETA constitution for NSDS III, is implemented fully in the future. It is through the Chambers Structure that the CHIETA can derive a credible sector skills plan to address the skills needs of all the sub-sectors of the CHIETA. We now need to work on skills training with a long-term view, and to plan for both the demand and supply sides.
The CHIETA is proud to report, that despite the economic downturn, skills-development levy income has grown to unprecedented levels. Our levy income has grown by 11%, from R268.6 million in 2009/2010 to R297.2 million in 2010/2011. Over the last three financial years levy income has increased by an average rate of 16.6%, consistently exceeding inflation and the annual average increment of salaries in the chemical sector over the period. The number of levy paying companies has however remained relatively consistent during the three year period. This substantially greater than inflationary increase without a corresponding increase in the number of levy contributing organisations is pervasive in confirming the impact of the CHIETA in enhancing the skills levels and creating employment in the chemical sector.
In addition to our ongoing support to our stakeholders, our good track record of collecting and disbursing mandatory grants, providing high-quality skills training and related interventions, we have earned the CHIETA the respect of our stakeholders, both from business and labour.
CHIETA ◊ Annual Report 2010 – 2011
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Chief Executive Offi cer’s Report
The year 2011 promises to be a good one for the CHIETA, as we learn from our successes and challenges of the past fi ve years of NSDS II. Already the CHIETA has started making big strides towards meeting the real scarce skills needs of our economic sector by obtaining well-researched skills plans and worker information. This will greatly assist the CHIETA to bridge the skills’ gaps identifi ed by our research and related interventions.
Ayesha Itzkin
Acting Chief Executive Offi cer
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Fazel ErnestChief Operations Officer
Once again the opportunity has arisen to reflect on the state of the skills revolution and in particular, the role played by the CHIETA. Having received accolades for our achievements in the recent past, we need to reflect on whether we have remained steadfast in our mandate, and indeed exceeded in the delivery of our mandate.
This past year has seen dramatic developments in the skills-development arena characterised by a much more vigorous programme of implementation. The new Department of Higher Education and Training (DHET) has ushered in a new-look SETA landscape and a Draft National Skills-Development Strategy with its concomitant legislative amendments.
Our responsibility remains therefore to ensure that we develop and improve the skills of the South African workforce – specifically within the chemical industry, and with particular focus on those workers previously disadvantaged – blacks; women and the disabled – paying greater attention to our vulnerable rural communities and citizens.
The new skills-development framework is expected to usher in a dynamic transformative human resource development process to successfully translate our interventions into accelerated transformation; greater productivity; and supporting skills training at small business level. Transformation remains a primary focus within our workplaces, serving as proof that our interventions need to make greater impact.
The end of NSDS II has coincided with the end of the reporting period of this annual report. The strength of NSDS II was to move the focus from being compliance driven (NSDS I) towards taking greater note of performance. This report highlights areas of performance that the CHIETA staff achieved.
The Operations Business Unit
CHIETA ◊ Annual Report 2010 – 2011
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THE APPRENTICESHIP UNIT
The CHIETA has an area of jurisdiction in terms of the Manpower Training Act, 1981 (Act No. 56 of 1981) MTA, as published in the Government Gazette No. 16561 of 21 July 1995 (Notice No. R 1076) over the designated trades: boilermaker, fi tter, turner, welder, rigger, electrician, diesel mechanic, motor mechanic and instrument mechanic.
The CHIETA resuscitated its apprentice training in 2008, enabling the workforce of the chemical industries sector to complete a successful Contract of Apprenticeship – a three-year learnership (level 2, 3 and 4) and years of relevant workplace experience, in order to apply for a trade test and to qualify as an artisan.
1. Section 13 apprenticeship training
1.1 Accreditation and monitoring of training and testing sites
To ensure that the Contract of Apprenticeship can be implemented, the CHIETA achieved the following in 2010/2011:
• Accredited fi ve DTTCs to conduct trade tests against the CHIETA trade tests. The CHIETA now has a total of 31 accredited DTTCs.
• Approved nine employer sites to implement apprenticeship workplace training. The CHIETA now has 33 approved workplace sites.
• Accredited fi ve providers of apprentice training for on-the-job training. The CHIETA now has 35 accredited providers of apprentice training.
Further, to ensure consistency across all CHIETA accredited sites, the CHIETA conducted 58 monitoring site visits. During this period the CHIETA also de-accredited for various reasons including, not meeting the required standards, the company deciding to become de-accredited due to changing nature of its business, etc:
• Eight employers of apprentice training sites;• One provider of apprentice training site; and• One DTTC site.
1.2 Section 13 achievements
An employer may in terms of section 13 of the MTA register an apprentice on a Contract of Apprenticeship linked to a competency-based modular learning programme. The apprentice receives during the four-year Contract of Apprenticeship the required workplace experience; practical training and institutional training at CHIETA-accredited sites in order to be eligible to do a trade test at a CHIETA-accredited Decentralised Trade Test Centre (DTTC) or at INDELELA.
The CHIETA contracted 32 apprentices during this fi nancial year, and issued 11 section 13 certifi cates to apprentices who completed their Contracts of Apprenticeship.
ETDQA
The CHIETA has an area of jurisdiction in terms of the Manpower Training Act, 1981 (Act No. 56 of 1981) MTA, as published in the Government Gazette No. 16561 of 21 July 1995 (Notice No. R 1076) over the designated trades: boilermaker, fi tter, turner, welder, rigger, electrician, diesel mechanic, motor mechanic
The CHIETA resuscitated its apprentice training in 2008, enabling the workforce of the chemical industries sector to complete a successful Contract of Apprenticeship – a three-year learnership (level 2, 3 and 4) and years of relevant workplace experience, in order to apply for a trade test and to qualify as an artisan.
Accreditation and monitoring of training and testing sites
The CHIETA has an area of jurisdiction in terms of the Manpower Training Act, 1981 (Act No. 56 of 1981) MTA, as published in the Government Gazette No. 16561 of 21 July 1995 (Notice No. R 1076) over the designated trades: boilermaker, fi tter, turner, welder, rigger, electrician, diesel mechanic, motor mechanic
The CHIETA resuscitated its apprentice training in 2008, enabling the workforce of the chemical industries sector to complete a successful Contract of Apprenticeship – a three-year learnership (level 2, 3 and 4) and years of relevant workplace experience, in order to apply for a trade test and to qualify as an artisan.
Accreditation and monitoring of training and testing sites
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1.3 Section 13 apprenticeship-related research
One of the challenges that the CHIETA faced was that not all prospective apprentices had the required Standard 8 (Grade 10) mathematics and science, or a relevant N1-certifi cate to qualify for entry into a Contract of Apprenticeship. The ETDQA commissioned a study to determine whether the theory-related (education) entry requirements as specifi ed in the Conditions of Apprenticeship is still applicable. The study was undertaken in two phases. Phase one was undertaken to determine if the Standard 8 standard grade mathematics and science syllabus is equivalent to the N1 syllabus for mathematics and engineering science. Phase two of the study was undertaken to determine which current mathematics or science qualifi cations offerings could be accepted as an equivalent educational qualifi cation. Based on the outcome of the study, the CHIETA identifi ed which educational qualifi cation can be accepted to as equivalent to the NATED 191 N1 mathematics and engineering science subjects. The full list of equivalencies is outlined in the CHIETA Requirements for Apprentices registered on contracts of apprentices in terms of section 13 of the Manpower Training Act.
In addition to the above, to be eligible for a trade test an apprentice applying for a trade test must, as one of the requirements, complete a N2 course or equivalent relevant to the specifi c trade. Stakeholders identifi ed the need to develop a CHIETA-specifi c N2 equivalent to be tested in an exam. The ETDQA commissioned a study to identify a N2 equivalent for the CHIETA-related trades. The study also identifi ed four subjects per trade that a learner will need to have completed to obtain the CHIETA N2 certifi cate. Based on this, the ETDQA developed an alternative N2 assessment system in line with the DHET’s assessment system.
1.4 National trade tests
INDLELA facilitated the process of updating the existing national trade tests for all designated trades between 2009 and 2010. The trade test updates were conducted by working groups representing stakeholders from across all the relevant sectors. These updates were made to ensure that the trade tests refl ect current industry practice. The ETDQA facilitated a process in April 2010 to discuss the updates required, and our stakeholder’s workshopped each trade test thoroughly for all the CHIETA-designated trades, except the diesel mechanic and motor mechanic trades which are in the process of being developed by the working groups. It is foreseen that the updated national trade test will be implemented at the end of 2011.
CHIETA ◊ Annual Report 2010 – 2011
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2. Section 28 apprentices training:
1.1 Section 28 achievements
A candidate who is not registered on a Contract of Apprenticeship, may in terms of section 28 of the MTA apply for a trade test. The candidate must provide evidence that he/she has the required knowledge, skills and experience equivalent to an apprentice, before the CHIETA can approve the application for a section 28 trade test (also known as RPL). The CHIETA’s exemption and admission criteria for section 28 candidates ensure that those with the required experience and knowledge are supported through this process.
During the financial year, the CHIETA declared 357 section 28 candidates competent and awarded them artisan certificates.
1.2 Section 28 apprentice-related research
The failure rate across section 28 trade test applications prompted the ETDQA to conduct research to compare a variety of learning pathways to establish if learners obtained sufficient skills and competencies from other learning pathways for them to pass the trade tests.
In the first study, the trade theory component of the N2-course syllabus offered by FET colleges were compared to the knowledge component of the SAQA registered G-MET levels 2, 3 and 4 trade-related learnerships/qualifications; the national certificate vocational levels 2, 3 and 4; and the CHIETA’s interim qualifications levels 2, 3 and 4 trade-relate learnerships/qualifications.
The second study consisted of two phases. The first phase was conducted to determine if the content of the practical component of the on-the-job training gained through any of the above-mentioned learning pathways were aligned to the on-the-job training required in terms of the CHIETA’s apprentice training schedules.
The second phase determined whether the duration of the on-the-job training gained during each of the three learning pathways was aligned to the minimum duration required for the on-the-job training in terms of the CHIETA’s apprentice training- schedules. Based on these findings, the ETDQA amended the CHIETA’s section 28 admission and exemption criteria to specify that the:
• N2 trade theory vs knowledge obtained via the other qualification pathways. • The required contents of on-the-job training needed to be obtained in a
qualification that is in line with the contents of on-the-job training obtained during an apprenticeship.
• The minimum duration of on-the-job training be obtained in a qualification in line with the minimum duration of on-the-job training obtained during an apprenticeship.
ETDQA continued
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3. CHIETA pre-trade evaluation test process:
The ETDQA developed a pre-trade evaluation test process to determine the eligibility of trade test candidates (section 13 and section 28) to do a trade test. The pre-trade evaluation test includes the theoretical knowledge component and the skills-level of the trade test candidates before they are approved for trade preparation and for a trade test. The ETDQA felt that this amended trade test process was necessary so that a trade test candidate stands a better chance of undergoing brush-up training before the trade test. This process will be implemented in the second half of 2011.
Provider workshops
On 31 March 2011 three successful collaborative provider workshops were held in the Western Cape (encompassing Mossel Bay, KwaZulu-Natal, the Eastern Cape and Gauteng, which included Sedibeng and Mpumalanga). The purpose of the workshops was:
• To inform providers about the Department of Higher Education and Training systems and the processes for the registration of private providers of education and training.
• To inform providers on the various learning pathways towards becoming an artisan, and to disseminate the information about our research.
Learning materials development or acquisition
During 2010/2011 the ETDQA also achieved the following significant development in the year under review including the development of learning materials through the CHIETA ISOE project and some learning materials acquired from related SETAs. To date, the materials relate to the following qualifications:
1. Engineering Fabrication NQF 2-4 (58722, 58720, 58721);2. Mechanical Engineering NQF 2-4 Fitting (59689, 59669, 59709);3. Mechanical Engineering: Pipe Fitting (59689, 59750, 59769);4. Welding Application and Practice: (57881, 57886, 57887);5. Chemical Manufacturing: (58955); and6. Gas Installation: (59015, 58950).
CHIETA ◊ Annual Report 2010 – 2011
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Development of new learnerships
During the period under review, we completed leanerships relating to the following qualifi cations:
1. Automated Packaging NQF 3; 2. Machining Tooling NQF 3-4. (The base qualifi cation for machining and tooling
is Turning NQF 2); and3. Pharmaceutical Sales Representation NQF 5.
Institutes of Excellence
The CHIETA has continued to provide fi nancial and related support to its existing institutes of excellence, namely:
1. PetroSA (PTY) Ltd Centre of Excellence – Mossel Bay (WC);2. Sasol SkillTEC – Sasolburg (FS);3. Gas Institute of Excellence – Randburg (GP);4. Phakamani College – Johannesburg (GP); and5. Scientec (Pty) Ltd (KZN).
A total of 2 500 learner certifi cates were issued for full qualifi cations registered on the NQF; 155 assessor certifi cates and 110 moderator certifi cates were issued.
With the assistance of the provider support-team, we managed to Qala 88 qualifi cations, 58 were monitored to maintain quality education and training; 74 audits were conducted on new and old qualifi cations ensuring that providers are accredited for the qualifi cations they are offering; 54 new potential providers were supported; and four regional workshops were held to support our providers.
Our scope was also broadened in terms of qualifi cations, for example lab analysis, energy regulation piped gas, automated packaging etc, as requested by SAQA.
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ETDQA continued
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Boi
ler
Mak
ing
6382
9R
epla
ces
Che
mic
al B
oile
rmak
er
NQ
F 4
:136
74
7. N
atio
nal C
ertifi
cate
: Mec
hani
cal H
andl
ing
(Rig
ging
)N
QF
203
Q03
0078
3012
72
Nat
iona
l Cer
tifica
te: M
echa
nica
l Han
dlin
g (R
iggi
ng)
NQ
F 2
SA
QA
ID: 5
9729
Nat
iona
l Cer
tifica
te: M
echa
nica
l Han
dlin
g:
Rig
ging
: Che
mic
al 6
3484
Rep
lace
s C
hem
ical
Rig
ger
NQ
F 2
:136
96
8. N
atio
nal C
ertifi
cate
: Mec
hani
cal H
andl
ing
(Rig
ging
)N
QF
3
03Q
0300
7924
1213
Nat
iona
l Cer
tifica
te:
Mec
hani
cal H
andl
ing
(Rig
ging
) N
QF
3 S
AQ
A ID
: 597
30N
atio
nal C
ertifi
cate
: Mec
hani
cal H
andl
ing:
R
iggi
ng: C
hem
ical
634
87R
epla
ces
Che
mic
al R
igge
r N
QF
3:1
3694
9. F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
: M
echa
nica
l Han
dlin
g (R
iggi
ng)
NQ
F 4
03
Q03
0080
2713
64N
atio
nal C
ertifi
cate
: Mec
hani
cal H
andl
ing
(Rig
ging
) N
QF
4 S
AQ
A ID
: 597
3F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
: M
echa
nica
l Han
dlin
g: R
iggi
ng: C
hem
ical
634
91R
epla
ces
Che
mic
al R
igge
rN
QF
4:1
3692
10. N
atio
nal C
ertifi
cate
: Pip
e F
itter
Ass
embl
er
NQ
F 2
03
Q03
0085
3113
02N
atio
nal C
ertifi
cate
: Pip
e F
ittin
g N
QF
2
SA
QA
ID: 5
9689
Nat
iona
l Cer
tifica
te: M
echa
nica
l Eng
inee
ring:
F
ittin
g: C
hem
ical
634
74N
ewly
-reg
iste
red
Lear
ners
hip
11. N
atio
nal C
ertifi
cate
: Pip
e In
stal
ler
Fab
ricat
or
NQ
F 3
03Q
0300
8328
1213
Nat
iona
l Cer
tifica
te: P
ipe
Fitt
ing
NQ
F 3
SA
QA
ID: 5
9750
Nat
iona
l Cer
tifica
te: M
echa
nica
l Eng
inee
ring:
P
ipe-
Fitt
ing:
Che
mic
al 6
3330
New
ly-r
egis
tere
d Le
arne
rshi
p
12. F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
:P
ipe
Fitt
er F
abric
ator
NQ
F 4
03Q
0300
8427
1234
Nat
iona
l Cer
tifica
te: P
ipe
Fitt
ing
NQ
F 4
SA
QA
ID: 5
9769
Fur
ther
Edu
catio
n an
d T
rain
ing
Cer
tifica
te:
Mec
hani
cal E
ngin
eerin
g: P
ipe-
Fitt
ing:
Che
mic
al 6
3332
New
ly-r
egis
tere
d Le
arne
rshi
p
13. G
ener
al E
duca
tion
and
Tra
inin
g C
ertifi
cate
: C
hem
ical
Ope
ratio
ns N
QF
103
Q03
0075
4112
01G
ener
al E
duca
tion
and
trai
ning
Cer
tifica
te:
Che
mic
al O
ps N
QF
1 S
AQ
A ID
: 660
29G
ener
al E
duca
tion
and
Tra
inin
g C
ertifi
cate
: C
hem
ical
Ope
ratio
ns 5
8514
Rep
lace
s C
hem
ical
Ope
rato
r Le
vel 1
14. N
atio
nal C
ertifi
cate
: Che
mic
al O
pera
tions
N
QF
203
Q03
0076
4413
52N
atio
nal C
ertifi
cate
: Che
mic
al O
ps N
QF
2S
AQ
A ID
: 785
27G
ener
al E
duca
tion
and
Tra
inin
g C
ertifi
cate
: C
hem
ical
Ope
ratio
ns 5
8515
Rep
lace
s C
hem
ical
Ope
rato
r Le
vel 2
15. N
atio
nal C
ertifi
cate
: Che
mic
al O
pera
tions
N
QF
303
Q03
0077
3212
03N
atio
nal C
ertifi
cate
: Che
mic
al O
ps N
QF
3
SA
QA
ID: 7
8528
Gen
eral
Edu
catio
n an
d T
rain
ing
Cer
tifica
te:
Che
mic
al O
pera
tions
662
09R
epla
ces
Che
mic
al O
pera
tor
Leve
l 3
16. F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
: C
hem
ical
Ope
ratio
ns N
QF
403
Q03
0088
2914
04F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
: C
hem
ical
Ops
NQ
F 4
SA
QA
ID: 7
8529
Fur
ther
Edu
catio
n an
d T
rain
ing
Cer
tifica
te:
Che
mic
al O
pera
tions
585
38R
epla
ces
Che
mic
al O
pera
tor
Leve
l 4
17. N
atio
nal C
ertifi
cate
: Wel
ding
App
licat
ion
and
Pra
ctic
e N
QF
203
Q00
0021
2413
62N
atio
nal C
ertifi
cate
: Wel
ding
App
licat
ion
and
Pra
ctic
e N
QF
2 S
AQ
A ID
: 578
81N
atio
nal C
ertifi
cate
: Wel
ding
App
licat
ion
and
Pra
ctic
e:
Che
mic
al W
eldi
ng. L
P ID
591
7G
ener
ic q
ualifi
catio
n W
eldi
ng
App
licat
ion
and
Pra
ctic
e, N
LRD
re
plac
es th
e C
hem
ical
Wel
der
qual
ifica
tion:
1363
4
CHIETA ◊ Annual Report 2010 – 2011
16
PR
EV
IOU
S
LE
AR
NE
RS
HIP
NA
ME
LE
AR
NE
RS
HIP
RE
GIS
TR
AT
ION
N
UM
BE
R
NE
WLY
-RE
VIS
ED
QU
AL
IFIC
AT
ION
TIT
LE
&
SA
QA
ID N
O
NE
WLY
-RE
CO
RD
ED
AG
AIN
ST
LE
AR
NIN
G P
RO
GR
AM
ME
&
SA
QA
ID N
OC
OM
ME
NT
S
18. N
atio
nal C
ertifi
cate
: Wel
ding
App
licat
ion
and
Pra
ctic
e N
QF
303
Q03
0031
0012
03N
atio
nal C
ertifi
cate
: Wel
ding
App
licat
ion
and
Pra
ctic
e N
QF
3 S
AQ
A ID
: 578
86N
atio
nal C
ertifi
cate
: Wel
ding
App
licat
ion
and
Pra
ctic
e:
Che
mic
al W
eldi
ng L
P ID
591
79G
ener
ic q
ualifi
catio
n W
eldi
ng
App
licat
ion
and
Pra
ctic
e, N
LRD
re
plac
es th
e C
hem
ical
Wel
der
qual
ifica
tion:
1363
3
19. F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
Wel
ding
A
pplic
atio
n an
d P
ract
ice
NQ
F 4
03Q
0300
3200
1204
Nat
iona
l Cer
tifica
te:
Wel
ding
App
licat
ion
and
Pra
ctic
e N
QF
4 S
AQ
A ID
: 578
87F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
: Wel
ding
A
pplic
atio
n an
d P
ract
ice:
Che
mic
al W
eldi
ng. L
P ID
59
180
Gen
eric
qua
lifica
tion
Wel
ding
A
pplic
atio
n an
d P
ract
ice,
NLR
D
repl
aces
the
Che
mic
al W
elde
r qu
alifi
catio
n:13
632
20. F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
La
bora
tory
Ana
lysi
s N
QF
403
Q03
0091
5214
04F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
: La
bora
tory
Ana
lysi
s N
QF
4 S
AQ
A ID
: 589
52N
/A. T
his
qual
ifica
tion
is C
HIE
TA s
peci
fic N
ewly
-reg
iste
red
lear
ners
hip
21. N
atio
nal C
ertifi
cate
: Gas
Ins
talla
tion
NQ
F 2
03Q
0300
8938
1202
Nat
iona
l Cer
tifica
te: G
as In
stal
latio
n N
QF
2 S
AQ
A ID
: 590
15N
/A. T
his
qual
ifica
tion
is C
HIE
TA s
peci
ficN
ewly
reg
iste
red
lear
ners
hip
22. N
atio
nal C
ertifi
cate
: G
as In
stal
latio
n N
QF
303
Q03
0090
3512
03N
atio
nal C
ertifi
cate
: Gas
Inst
alla
tion
NQ
F 3
SA
QA
ID: 5
8950
N/A
. Thi
s qu
alifi
catio
n is
CH
IETA
spe
cific
New
ly-r
egis
tere
d Le
arne
rshi
p
23. N
atio
nal C
ertifi
cate
: Sur
face
Coa
ting
NQ
F 3
03Q
O30
0713
1122
3N
atio
nal C
ertifi
cate
: Man
ufac
turin
g of
Sur
face
C
oatin
g N
QF
3 S
AQ
A ID
: 578
79N
/A. T
his
qual
ifica
tion
is C
HIE
TA s
peci
ficLe
arne
rshi
p to
be
deve
lope
d
24. N
atio
nal C
ertifi
cate
: Gla
ss F
orm
ing
NQ
F 3
03Q
0300
7220
1203
Nat
iona
l Cer
tifica
te: G
lass
For
min
g N
QF
3 S
AQ
A ID
: 578
28N
/A. T
his
qual
ifica
tion
is C
HIE
TA s
peci
ficN
ewly
-reg
iste
red
lear
ners
hip
25. N
atio
nal C
ertifi
cate
: Che
mic
al M
anuf
actu
ring
NQ
F 2
03Q
0300
4114
126
Nat
iona
l Cer
tifica
te: C
hem
ical
M
anuf
actu
ring
NQ
F 2
SA
QA
ID: 5
8955
N/A
. Thi
s qu
alifi
catio
n is
CH
IETA
spe
cific
New
ly-r
egis
tere
d le
arne
rshi
p
26. N
atio
nal C
ertifi
cate
: Ope
ratio
n of
Mob
ile E
xplo
sive
U
nit N
QF
303
Q03
0099
1912
03N
atio
nal C
ertifi
cate
: Ope
ratio
n of
Mob
ile
Exp
losi
ve U
nit N
QF
3 S
AQ
A ID
: 495
55N
/A. T
his
qual
ifica
tion
is C
HIE
TA s
peci
ficN
ewly
-reg
iste
red
lear
ners
hip
27. F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
: La
bora
tory
Ana
lysi
s N
QF
403
Q03
0100
5114
04F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
La
bora
tory
Ana
lysi
s N
QF
4 S
AQ
A ID
: 649
50N
/A. T
his
qual
ifica
tion
is C
HIE
TA s
peci
ficN
/A. T
his
qual
ifica
tion
is C
HIE
TA
spec
ific
28. N
atio
nal C
ertifi
cate
: Mea
sure
men
t, C
ontr
ol a
nd
Inst
rum
enta
tion
NQ
F 2
03Q
0300
9827
1332
Nat
iona
l Cer
tifica
te: M
easu
rem
ent,
Con
trol
and
In
stru
men
tatio
n N
QF
2 S
AQ
A ID
: 745
30N
atio
nal C
ertifi
cate
: Mea
sure
men
t, C
ontr
ol a
nd
Inst
rum
enta
tion
NQ
F 2
: Che
mic
al L
P ID
783
83R
epla
ces
Che
mic
al
Inst
rum
enta
tion
NQ
F 2
:136
99
29. N
atio
nal C
ertifi
cate
: Mea
sure
men
t, C
ontr
ol a
nd
Inst
rum
enta
tion
NQ
F 3
03Q
0301
0120
1203
Nat
iona
l Cer
tifica
te: M
easu
rem
ent,
Con
trol
and
In
stru
men
tatio
n N
QF
2 S
AQ
A ID
: 745
32N
atio
nal C
ertifi
cate
: Mea
sure
men
t, C
ontr
ol a
nd
Inst
rum
enta
tion
NQ
F 2
: Che
mic
al L
P ID
783
85R
epla
ces
Che
mic
al
Inst
rum
enta
tion
NQ
F 3
:136
98
30. N
QF
403
Q03
0097
2013
44F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
: M
easu
rem
ent,
Con
trol
and
Inst
rum
enta
tion
NQ
F 4
SA
QA
ID; 7
4531
Fur
ther
Edu
catio
n an
d T
rain
ing
Cer
tifica
te:
Mea
sure
men
t, C
ontr
ol a
nd In
stru
men
tatio
n N
QF
2: C
hem
ical
LP
ID 7
8384
Rep
lace
s C
hem
ical
In
stru
men
tatio
n N
QF
4:1
3697
31. N
atio
nal C
ertifi
cate
: Ele
ctric
al E
ngin
eerin
g N
QF
203
Q03
0094
3314
02N
atio
nal C
ertifi
cate
: Ele
ctric
al E
ngin
eerin
g N
QF
2 S
AQ
A ID
637
89N
atio
nal C
ertifi
cate
: Ele
ctric
al E
ngin
eerin
g N
QF
2: C
hem
ical
LP
ID 6
7431
Rep
lace
s C
hem
ical
Ele
ctric
al
NQ
F 2
: 136
53
32. N
atio
nal C
ertifi
cate
: Ele
ctric
al E
ngin
eerin
g N
QF
303
Q03
0093
2513
33N
atio
nal C
ertifi
cate
: Ele
ctric
al E
ngin
eerin
g N
QF
3 S
AQ
A ID
637
90N
atio
nal C
ertifi
cate
: Ele
ctric
al E
ngin
eerin
g N
QF
3: C
hem
ical
LP
ID 7
2074
Rep
lace
s C
hem
ical
Ele
ctric
al
NQ
F 3
:136
40
33. F
urth
er E
duca
tion
and
Tra
inin
g C
ertifi
cate
: E
lect
rical
Eng
inee
ring
NQ
F 4
03Q
0300
9224
1304
Fur
ther
Edu
catio
n an
d T
rain
ing
Cer
tifica
te:
Ele
ctric
al E
ngin
eerin
g N
QF
4 S
AQ
A ID
: 638
89N
atio
nal C
ertifi
cate
: Ele
ctric
al E
ngin
eerin
g N
QF
4:
Che
mic
al L
P ID
720
72R
epla
ces
Che
mic
al E
lect
rical
N
QF
4:1
3654
34. N
o P
revi
ous
lean
ersh
ip
03Q
0301
0320
1323
Mec
hani
cal E
ngin
eerin
g: M
achi
ning
and
Too
ling
NQ
F 3
SA
QA
ID: 6
3649
No
lear
ning
pro
gram
me
regi
ster
ed a
gain
st th
is
qual
ifica
tion
Nat
iona
l Cer
tifica
te M
echa
nics
: C
hem
ical
Tur
ning
NQ
F 3
S
AQ
A ID
: 136
80
17
PR
EV
IOU
S
LE
AR
NE
RS
HIP
NA
ME
LE
AR
NE
RS
HIP
RE
GIS
TR
AT
ION
N
UM
BE
R
NE
WLY
-RE
VIS
ED
QU
AL
IFIC
AT
ION
TIT
LE
&
SA
QA
ID N
O
NE
WLY
-RE
CO
RD
ED
AG
AIN
ST
LE
AR
NIN
G P
RO
GR
AM
ME
&
SA
QA
ID N
OC
OM
ME
NT
S
35. N
o P
revi
ous
lear
ners
hip
03Q
0301
0426
1324
Fur
ther
Edu
catio
n an
d T
rain
ing:
Mac
hini
ng a
nd
Tool
ing
NQ
F 4
SA
QA
ID: 6
3629
No
lear
ning
pro
gram
me
regi
ster
ed a
gain
st th
is
qual
ifica
tion
Nat
iona
l Cer
tifica
te M
echa
nics
: C
hem
ical
Tur
ning
NQ
F 4
S
AQ
A ID
: 136
79
36. N
o pr
evio
us le
arne
rshi
p03
Q03
0102
2412
03N
atio
nal C
ertifi
cate
:Aut
omat
ed P
acka
ging
N
QF
3 S
AQ
A ID
: 589
75N
atio
nal C
ertifi
cate
: Aut
omat
ed P
acka
ging
Ope
ratio
ns
NQ
F 3
Che
mic
al L
P ID
799
46N
/A
37. M
edic
al S
ales
Rep
rese
ntat
ive
To b
e re
view
edN
atio
nal C
ertifi
cate
: P
harm
aceu
tical
Sal
es
Rep
rese
ntat
ive
NQ
F 5
SA
QA
ID: 6
3969
N/A
N/A
Lea
rner
ship
s at
Hig
her
Ed
uca
tio
n -
Co
-op
erat
ive
Ed
uca
tio
nP
RE
VIO
US
LE
AR
NE
RS
HIP
NA
ME
LEA
RN
ER
SH
IPR
EG
IST
RA
TIO
N
NU
MB
ER
NE
WLY
-RE
VIS
ED
QU
ALI
FIC
AT
ION
TIT
LE &
S
AQ
A ID
NO
NE
WLY
-RE
CO
RD
ED
AG
AIN
ST
LEA
RN
ING
PR
OG
RA
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CHIETA ◊ Annual Report 2010 – 2011
18
During the 2010/2011 fi nancial year, the CHIETA submitted the 2011/2016 Sector Skills Plan (SSP) to the Department of Higher Education and Training (DHET) on 30 September 2010. The Department subsequently evaluated the SSP and provided comments to the CHIETA in November 2010. The feedback from the Department was encouraging, and the comments that needed to be integrated were not substantial. The revised SSP was submitted to the externally-appointed evaluator who was generally happy with the document, which was then submitted to the DHET in mid-February 2011.
Concurrent with this process, the CHIETA engaged our line departments of government (Energy, Trade and Industry and Environmental Affairs) around the SSP. Based on these engagements, the CHIETA integrated the respective comments and sign-off was obtained from the Department of Energy and Environmental Affairs.
The process of SSP compilation involved extensive stakeholder consultation with the chambers and stakeholders from the regions, as well as government departments and a few relevant interest groups. This principle of broad stakeholder consultations will be employed in the compilation of future SSP updates, as ths process gives credibility to our skills planning.
The Research and Skills Planning Unit looks forward to working constructively with internal and external stakeholders in the pursuit of credible skills planning and research, to meet the skills-development requirements of the CHIETA.
Research and Skills Planning
19
GAUTENG AND CENTRAL REGIONS
The year under review was not only unforgettable due to the mega-international football spectacle in our country, but it also brought about a hive of interesting activities in skills-development circles. Firstly, it was a transitional year that saw NSDS II being extended by a year. Secondly, it paved the way for NSDS III through consultation around the framework, and SETA landscape. And lastly, we saw the re-establishment of the CHIETA. Throughout the year of the World Cup, the Gauteng and central region (GP&CR) played its role, despite a few organisational challenges that brought pressures to bear on some aspects of the regional performance.
The GP&CR team comprises regional skills advisors (RSAs) and one administrator, and is headed by a regional manager. Until October 2010, there were four RSAs. The resignation of Fanuel Chesa meant that the region now has three RSAs, while the number of companies remains constant. We have had to double up our efforts to achieve the level of participation refl ected below, which meant that the regional manager had to step in to assist several assigned member-companies. Credit is owed to the unstinting loyalty of Brenda, Bennet, Bongani, Pat and Fanuel (in absentia). With this team, we straddle fi ve provinces: Free State, Gauteng, Limpopo, Mpumalanga and North-West, all of which hosted some or other World Cup match or event.
During the reporting period, at least 830 transactions of a technical-support nature were captured. Through the technical support role we are able to meet companies one- on-one to advise, implement and monitor grant processes on the one hand, and to contribute towards quality assurance on the other.
With regard to grants, the region assisted and monitored 211 and 196 companies for the Mandatory Grant (MG) and Discretionary Grant (DG), respectively. Through our targeted assistance at least 80 organisations received DG awards, while 323 qualifi ed to receive MGs. Some of the recipients of DGs were public providers seeking to accomplish work-integrated learning for learners in chemical-related qualifi cations.
Regions
GAUTENG AND CENTRAL
The year under review was not only unforgettable due to the
hive of interesting activities in skills-development circles. Firstly, it was a transitional year that saw NSDS II being extended by a year. Secondly, it paved the way for NSDS III through consultation for NSDS III through consultation around the framework, and SETA landscape. And lastly, we saw the landscape. And lastly, we saw the re-establishment of the CHIETA. re-establishment of the CHIETA.
GAUTENG AND CENTRAL
The year under review was not only unforgettable due to the
hive of interesting activities in skills-development circles. Firstly, it was a transitional year that saw NSDS II being extended that saw NSDS II being extended by a year. Secondly, it paved the way by a year. Secondly, it paved the way for NSDS III through consultation for NSDS III through consultation around the framework, and SETA landscape. And lastly, we saw the
CHIETA ◊ Annual Report 2010 – 2011
20
Our contribution to quality assurance gravitated mostly towards public institutions. The approach was the inception of a response to the then draft NSDs III and the ministerial call for SETAs and public institutions to join hands. The region, together with the ETDQA and the Strategic Projects units identified a need to formally approach public providers for partnerships. The regional office prioritised two outlying provinces in Limpopo and Mpumalanga as a start.
In December 2010, a workshop was held with the majority of the Further Education and Training colleges and the Department of Education in Limpopo to explore collaboration. This was followed by individual visits between February and March to the Capricorn, Waterberg, Lephalale and Sekhukhune colleges. The seeds have been planted, and the year 2011/2012 should yield some positive partnerships in this regard, including an outreach to other provinces such as the Free State and North-West.
The CHIETA now officially sits as a member of the following Industrial Advisory Councils: the University of Johannesburg, UNISA, the Vaal University of Technology and Wits University. These councils have long-existed to bring together industry, academic provision and SETAs for the sake of improving learner access to the workplace.
Unlike the World Cup, skills-development is not an event, it is a continuous process to change lives of individual South Africans and a quest to improve productivity and our economy through quality training. As a result, our valued stakeholders without whom we could not have met our goals, have managed to keep us on our toes through the SDCs and SDFs initiatives.
Throughout the reporting period, we continued to empower company-based training structures such as the SDFs and the skills-development committees through our capacity-building programmes. There were at least 20 skills-development committees established and/or revived, plus an additional 14 SDCs received refresher-training sessions. Within some companies at least 34 individual SDF induction sessions were held.
The number of SDFs reflected above excludes SDF participation in our broad regional forums (BRFs). Through the BRFs we were able to reach more than 200 SDFs and/or sector specialists. The BRFs provide a significant platform to communicate with stakeholders and to market our products and services.
The regional co-ordinating committees in Sedibeng, Gauteng and Mpumalanga create an environment conducive to the CHIETA to consult its constituencies on issues of mutual interest. Although there are challenges of participation, especially from labour’s side, at least three RCCs were held, one of which did not have a quorum.
In August 2010, the regional office at the behest of the research and SSP manager contributed to the Pestel workshops and an industry workshop, and identified several companies and government departments for in-depth interviews.
Regions continued
21
On the public relations side, we participated in a seminar convened by UNISA on work- integrated learning, the Transport SETA agm, a quality learning forum arranged by the department, the Mandela Day Career Guidance Festival in Limpopo and two Mpumalanga SETA collaboration workshops.
KWAZULU-NATAL AND EASTERN CAPE
INTRODUCTION
The team consists of Rajen Naidoo, the regional manager for KwaZulu-Natal; regional skills advisors, Aline Jeanette John–Naidu, Beevash Gansan, Thulasizwe Kojane who service KwaZulu-Natal; and Olaf Norman, who services stakeholders in the Eastern Cape. Nelisiwe Gumede is our regional administrator.
We see ourselves as a team driven by common purpose with a host of complementary skills. We try to maintain synergy and to work in a co-ordinated way. We continually remind ourselves about the focus areas of NSDS III and envisage that all our plans and initiatives will result in positive changes that will translate into a better quality of life for everyone.
Focus areas and achievements
• The stakeholder participation rate remains a key indicator to us from a regional- support perspective. Our WSP/ATR submissions have continued to increase. The year under review showed an improvement in submissions by 11%. The number of DG applications received increased by 16%.
• Our RCCs remain effective and we are enjoying the benefi ts of regional interaction as a sector, linking very well to our constitutional structures. Mr M Bhengu chairs the KwaZulu-Natal RCC and Mr Arend Levendal chairs the Eastern Cape RCC. Nita Jacobs and Karools Adams are the deputies, respectively. Their leadership and the collective contribution from the RCCs is appreciated.
KWAZULU-NATAL AND EASTERN CAPE KWAZULU-NATAL AND EASTERN CAPE
The team consists of Rajen Naidoo, the regional manager for KwaZulu-Natal; regional skills advisors, Aline Jeanette John–Naidu, Beevash Gansan, Thulasizwe John–Naidu, Beevash Gansan, Thulasizwe Kojane who service KwaZulu-Natal; and Olaf Norman, who services stakeholders in the Eastern
We see ourselves as a team driven by common purpose with a host of complementary skills. We try to maintain synergy and to work in a co-ordinated way. We continually remind ourselves about the focus areas of NSDS III and envisage that
KWAZULU-NATAL AND EASTERN CAPE KWAZULU-NATAL AND EASTERN CAPE
The team consists of Rajen Naidoo, the The team consists of Rajen Naidoo, the regional manager for KwaZulu-Natal; regional manager for KwaZulu-Natal; regional skills advisors, Aline Jeanette regional skills advisors, Aline Jeanette John–Naidu, Beevash Gansan, Thulasizwe John–Naidu, Beevash Gansan, Thulasizwe Kojane who service KwaZulu-Natal; and Olaf Norman, who services stakeholders in the Eastern
We see ourselves as a team driven by common purpose with a host of complementary skills. We try to maintain synergy and to work in a co-ordinated way. We continually remind ourselves about the focus
CHIETA ◊ Annual Report 2010 – 2011
22
• Capacitating SDCs, SDFs, the unions and other relevant stakeholders.• Supporting co-operative education and collaboration between our service
providers and the industry. We continued our membership on the DUT chemistry and engineering advisory boards. Our participation on the WSU chemistry advisory board has been met with great appreciation and we are hoping that such a board becomes active at NMMU very soon.
• Our close relationships with the FET colleges continued. The East Cape Midlands College, PE College and the East Cape Training Centre actively deliver on CHIETA programmes in the Eastern Cape. The KwaZulu-Natal Coastal College has successfully extended its scope and has entered into partnerships with DSTT and Sasol Wax.
• There was meaningful engagement with the relevant NGOs, CBOs, Co-ops and critical interest groups. There has also been active participation with the Durban Chemical Cluster, municipalities, SEDA, the Environmental Forum as well as COEGA. The Eastern Cape PSDF is still functional and being driven by the Office of the Premier. Our participation on the HRD forum, driven by the Nelson Mandela Bay municipality continues. In KwaZulu-Natal the SETA collaboration has been revived and the SETA cluster is now active.
• Marketing and communications have been very effective. Mini forums were held in Newcastle, Richards Bay and East London as part of our outreach programme. Broad regional forums were successfully held in Durban and Port Elizabeth. Subjects covered included the changing landscapes of SETAS, QCTO, co-operative education, as well as competitiveness.
• We have been offering career guidance and identifying employment opportunities. Learner support has been provided at the DOE exhibitions, World of Work – DUT and the eThekwini Career Event, as well as career fairs in the deep rural areas of KwaZulu-Natal which included Tongaat, Tugela, KwaNongoma, Mandini, Msinga and Greytown.
We see NSDS III, the amendments to the SD legislation and all associated changes as a huge opportunity for reform and to find synergy between the objectives of business and government priorities. We shall endeavour to continue to work in a manner to increase and find common purpose.
Regions continued
23
THE WESTERN AND NORTHERN CAPE REGION
The Western and Northern Cape regional offi ce comprises a manager, a skills’ adviser and administrator. The primary responsibility of the staff in the region pivots on stakeholder relationship management
and the delivery of CHIETA objectives as spelt out in the business plan.
Highlights
The Western and Northern Cape regional offi ce started off the year under review by assisting companies with
their mandatory grant submissions. The technical support given by regional staff ensured that the data in the annual training
reports and workplace skills plans are as accurate as possible. This provided credible information for the compilation of the Sector Skills Plan. This period was followed by a vigorous campaign to involve the regional stakeholders in the discretionary grant application process. The proactive approach resulted in 34 recipient companies, which was more than ever before.
The awards made refl ected the skills needs in the region, with learners recipient of various training interventions such as learnerships, apprenticeships, skills programmes and adult basic education. This demonstrated an increased commitment from the regional stakeholders in pursuit of the national skills-development imperatives for future economic growth.
The region continued to build the capacity of stakeholders about the objectives of the National Skills-Development Strategy throughout the period under review. A wide spectrum of stakeholders received information via various platforms organised by the regional offi ce. These included: broad regional forums, service provider support workshops, regional consultative committee meetings and a special Pestel workshop. The objective of the Pestel was to extract the important political, economic, social, technological, environmental and legal infl uences on skills- development in the region.
The co-operative agreement between the CHIETA and the Western Cape Education Department signed during 2009/2010 resulted in the initiation of a programme-approval process for the artisan training material offered at the Western Cape Further Education and Training colleges. Furthermore, the region strengthened the relationship between industry and the FET colleges by organising lecturer visits to the industry and vice versa. This resulted in the industry becoming more receptive towards fi rst-time job seekers, who had exited the FET colleges.
THE WESTERN AND NORTHERN THE WESTERN AND NORTHERN CAPE REGION
The Western and Northern Cape regional offi ce comprises a manager, a skills’ adviser and administrator. The primary
and the delivery of CHIETA objectives as spelt out in the business plan.
Highlights
The Western and Northern Cape regional offi ce started off the year under review by assisting companies with
their mandatory grant submissions. The technical support their mandatory grant submissions. The technical support given by regional staff ensured that the data in the annual training given by regional staff ensured that the data in the annual training given by regional staff ensured that the data in the annual training
THE WESTERN AND NORTHERN CAPE REGION
The Western and Northern Cape regional offi ce comprises a manager, a skills’ adviser and administrator. The primary
and the delivery of CHIETA objectives as spelt out in the business plan.
Highlights
The Western and Northern Cape regional offi ce started off the year under review by assisting companies with
their mandatory grant submissions. The technical support their mandatory grant submissions. The technical support
CHIETA ◊ Annual Report 2010 – 2011
24
The oil and gas industry has been identifi ed as a growth sector under the Micro-Economic Development Strategy in the Western Cape. The regional offi ce has therefore established a partnership with the South African Oil and Gas Alliance (SAOGA) and is now a member of the task team which meets regularly to discuss collaborative projects. An exciting project funded by the CHIETA discretionary grant and Chevron has been launched to address some of the skills needed in the province’s oil and gas industry. The stakeholders involved were: Chevron, Northlink FET College, SAOGA and a private training provider. The project aimed to provide skills for 200 learners in the various trade disciplines. Some learners will receive national technical certifi cates and certifi cates of competency, while others will receive credits towards a full qualifi cation. Another noteworthy collaborative project funded by the CHIETA discretionary grant was the indenturing of 50 apprentices in the various sectors. The College of Cape Town played a leading role in securing placements for these prospective artisans.
The Western Cape region will continue to promote participatory and interactive processes among stakeholders in pursuit of the objectives of the National Skills-Development Strategy III. We would like to thank all our stakeholders for their continued support in the skills-development arena, which contributes to the fi ght against unemployment and poverty.
24
Regions continued
25
The role of stakeholder relationship management is key to ensuring that the CHIETA’s engagement with both its internal and external stakeholders is optimised and that the CHIETA’s value proposition to all stakeholders is effectively communicated. The Relationship Management Unit continued to ensure that both the CHIETA’s internal and external stakeholders continued to have positive experiences with the CHIETA.
We continued with our drive to make sure that the query resolution and enquiry turnaround times are improved.
In the year under review, efforts to maximise the CHIETA’s brand visibility were initiated. In the year ahead, we will also continue to increase the CHIETA’s visibility and brand identity.
Stakeholder experience
In the period under review, the call centre telephone systems were improved and upgraded. The telephone system upgrade ensured that our call centre agents are responsive to all our clients’ requirements. A lot of focus will also be put on in-house training of the whole team to sharpen their customer service skills. The certification issuing process has also improved. We have witnessed a significant reduction in the number of service-related complaints from our stakeholders.
Brand management
The CHIETA projected and optimised its corporate brand through a number of launches. As the CHIETA seeks to ensure increased public visibility, we will continue to seek opportunities to project and effectively communicate our brand. The CHIETA has gained mileage through the advertorials placed in the national newspapers in the year under review. Strong partnerships have been built and the media has projected the CHIETA and its brand in a fair and balanced way. We shall endeavour, in the year ahead, to increase our visibility even more through a number of initiatives with key radio stations, selected and relevant, targeted strategic business publications, television broadcasts and our own internal electronic newsletter. We will continue to build a strong relationship with all established media partners so that in the year ahead, we can continue to be the trailblazer for skills-development.
Stakeholder Relationship Management
CHIETA ◊ Annual Report 2010 – 2011
26
The Grants Management Unit processes Mandatory and Discretionary Grants so that member organisations can access funds for training. While the Mandatory Grants programme seeks to mobilise Workplace Skills Plans and encourage organisations to benefit from their levy payment, the Discretionary Grants Programme seeks to provide funding to complement existing training initiatives, expand opportunities to the marginalised and ensure that gaps are filled in addressing national priorities for training and workplace transformation.
Mandatory Grants
Mandatory Grants are paid for the submission of Workplace Skills Plans and Implementation Reports. An overall review of the submission of WSPs and ATRs reports reveals a substantial increase of companies participating. Our Mandatory Levy income was approximately R185 million and we were able to disburse R154 for the financial year 2010/11. That is an 83% disbursement rate.
Discretionary Grants
In 2010/2011 a public announcement was made to invite applications for Discretionary Grants funding Opportunities within the Chemical Industries Sector. About 400 organisations submitted project proposals to the value of approximately R1.3 billion. The CHIETA allocated a total amount of approximately R 89 million for the following Funding Windows: This was based on the availability of funds for this financial year.
PROGRAMMES
ABET
GETC Learnerships for employed and unemployed
FET Learnerships for employed and unemployed
HET Learnerships for employed and unemployed
New Venture Creation Programmes
Apprenticeships for employed and unemployed
Skills Programmes for employed and unemployed
Workplace Experience Programmes
Internships
Employment Creation Programmes
Graduate Development Programmes
BEE Programmes
RPL
Career Awareness -Career Guides / Indaba
Community Development Projects
Rural Development
Grants Management
27
PROGRAMMES
Infra-Structure Support
RPL
Career Awareness – Career Guides/Indaba
Community Development Projects Rural Development
Infra-Structure Support
All the areas of priority are intended to contribute to the new Department of Higher Education and Training Skills Development priorities. These areas of priority cover a wide scope of possible training and development initiatives. Investment into the strengthening of the state’s system of colleges, universities of technology and universities must be fore grounded so that the capacity to deliver services to an increasing number of learners in future is grown.
The Service Level Agreement to be submitted by the CHIETA to the Department of Higher Education and Training is expected to be structured so that:
• At least 50 % of all SETA discretionary grants are to be allocated to scarce and critical skills
At least 10% of all SETA discretionary grants are to be allocated to programmes which serve the poor and vulnerable, especially the young unemployed.
The most significant achievements of the Discretionary Grants Programme for 2010/2011 are:
1. The change in the profile of organisations to which funds are allocated.2. The variety of worthwhile projects that are being undertaken by member
organisations.3. The impact or knock on effect the programme is having on the availability of
Skills Development opportunities and the number of WSPs to be submitted.
The organisations that are funded are widely disbursed geographically. The projects supported cover a wide variety of Skills Development projects but include projects on HIV/AIDS, Skills Development Research and Youth and Community Development initiatives, Career Guidance programmes for both grade 9,10 &11 the and Career Guidance for FET Institutions. It is anticipated that as a result of the Grants Programme will yield about 14 000 learners and individuals will receive training of high priority in the National Skills Development Strategy.
2010/2011 has been an incredible year for South Africa as well as the CHIETA.As a country, we are still raving about the success stories of hosting the best Soccer World
CHIETA ◊ Annual Report 2010 – 2011
28
Cup ever. So too, the CHIETA would like to reflect on the progress and success stories of an incredible year. A year of ‘extra-ordinary possibilities’ for our stakeholders and our learners.
These are some of the highlights of 2010/2011 are:
1. CHIETA’S APPROACH TO THE UNEMPLOYMENT PROBLEM
While everybody is talking about the problem of almost three million young people between the ages of 15 and 28 being unemployed in the country, CHIETA has adopted a proactive approach to creating a model to address the issue. The CHIETA has launched a project to address unemployment in the Heideveld and Hout Bay communities in Cape Town. The programme is being run with full buy-in of the local communities who are fully supportive of those who are enrolled. Indeed, recruitment has been effected through local community structures who undertake to ensure that the learners stay the course. While CHIETA has made provision for 100 individuals for this pilot, the demand has been so great that already 200 have been enrolled. There are 6 major areas covered during the 4 month period. These are: Communication (including presentations both to others and of oneself), relevant mathematical skills, computer literacy, financial acumen, entrepreneurship and finally the thinking skills that underpin so much of appropriate learning. During this period the learners are also encouraged to volunteer their services (and further develop their skills) in various community structures such as hospitals, day care centres etc. The focus throughout the entire programme is on preparing the participants either for employment or self-employment. One of the keys to making the project work is to mobilize the communities as well as the CHIETA’s stakeholder-base. CHIETA is very excited at the prospects for their pilot projects in the unemployment arena. We remain committed to further funding after the pilot.
2. CHIETA LAUNCHES A DYNAMIC PARTNERSHIP WITH A UNIVERSITY OF TECHNOLOGY (CAPE PENINSULA UNIVERSITY OF TECHNOLOGY)
The 9th of April 2010 marked the strengthening of a relationship between CHIETA and Cape Peninsula University of Technology (CPUT). The CHIETA provided discretionary grants for workplace experience.
The Launch happened at a time where SETAs were celebrating their 10th year of existence. CHIETA at the beginning of this special year is creating a legacy which would be reflected in the future of each of the learners who will benefit from this funding Grant. The CHIETA has gone to all provinces reaching out to the poor; vulnerable and isolated.The aim being to make such funding opportunities available and accessible to these communities.
This has been done to address what the Minister, Hon. Dr Nzimande emphasized on in his budget speech.
Grants Management continued
29
The CHIETA is taking responsibility to skill and develop those with dreams to be fulfilled.Amongst other things that CHIETA has done to improve the lives of people are:
• Intensifying Artisan training: - running recognition of prior learning project to fast track people in getting trade certificates.
• Rural Development: - reaching out to the poor and under privileged in rural areas.
• The Placement of Learners: - placement of Graduates in the workplace.
3. CHIETA REACHES OUT TO PEOPLE WITH DISABILITIES
A pilot project was initiated with people living with disabilities. They range from people who have matriculated and those who have never seen the gates of a school, as well as those who have done Adult Basic Education Training. One of the learners who is also an aspiring gospel musician, said it excited him that he could now finally compose and write his own music.” Braille has given me a new lease on life,” he explained”. The course was not easy at the beginning, but the satisfaction of being able to complete it surpassed the initial difficulties. The Braille teacher said the course involved six weeks of intensive literacy training and six weeks of numeracy training. It was a learning curve for everyone because the students are all from different socio-economic backgrounds. The course let blind learners know that they do not have to feel alone just because they are blind. The Braille course was a foundation to the students’ futures and they now could pursue their studies with a greater chance of being employed.
4. RURAL YOUTH ENTER CHEMICAL SECTOR
BIG smiles were the order of the day when 20 youth from Mogale City’s rural areas were for pushing aside their distressing rural surroundings and pursuing a career in the chemical industry. A launch was held to encourage the budding chemical practitioners and others at the official launch of the Chemical Industries Education and Training Authority (CHIETA) New Venture Creation Programme. We want to continue on a progressive trajectory that was set at the beginning of our term by reinvigorating the rural development agenda, and ensuring that we fast track upliftment of the living standards of our rural communities. This CHIETA initiative fell squarely within this broad objective of improving the lives of communities across Mogale City. Our efforts as a municipality are therefore aimed at strategic preparation of our young people to be able to take advantage of the opportunities of this world renowned country. The New Venture Creation Programme, which is equivalent to the National Qualification Framework (NQF) level 4, is an initiative of Mogale City as the host municipality.
CHIETA ◊ Annual Report 2010 – 2011
30
5. HIV/AIDS IN THE WORKPLACE
While business clearly recognises the impact HIV/AIDS has on the workforce, levels of productivity, absenteeism, lowered morale, and increased costs, amongst other outcomes, it is less clear on how to respond. Research has tended to focus on sector or industry level impacts or the impact of HIV/AIDS on business as a whole in South Africa. Organisations, especially SMMEs, are often not sure how this translates into a direct effect for them. It is often difficult to generate an analysis of the effects HIV/AIDS has on one’s current and future business. To this end, an intervention aimed at individual organisations, but taking into account country, sector and industry trends, was developed by Redpeg.
THE STRATEGIC HIV/AIDS WORKPLACE PROGRAMME
The overall aim of the programme, which started in 2008, is to enhance participating companies’ ability to strategically manage HIV/AIDS in the company. For business to respond to HIV/AIDS in the workplace, research, capacity and support are required. Redpeg saw the need for individual organisations to be empowered and capacity built in order to design, develop and implement HIV/AIDS programmes, interventions and policies and strategies. This programme is being rolled out nationally by Redpeg free of charge to participating companies (it is a funded programme). The programme, which takes place over 9-12 months for participating companies, consists of a number of key interventions.
The listed objectives of what people were gaining from the programme were: Better workplace; Better understanding of HIV; Knowledge to share with people; To be a coordinator; To be able to help HIV/AIDS people” – Engineering organisation, Johannesburg
“HIV/AIDS awareness; Understanding; How to draft an HIV/AIDS workplace policy; How to implement a workplace strategy” – Engineering organisation, Durban
“We have lost several staff from HIV related illnesses. If there is more training, education and wellness programmes available. I think that this will be reduced” – Equipment organisation, Johannesburg.
“We now know the importance and effectiveness of having a HIV/AIDS awareness/preventative programme” – Engineering organisation, Durban.
PROSPECTS FOR THE FUTURE
Having established the necessary foundation for providing services and support to al our stakeholders, the Grants Management Unit seeks to consolidate and refine its programmes to our sub-sectors for support and services.
Grants Management continued
31
Governance and Support Services Business Unit
A wide range of governance and risk-management interventions were successfully embarked on and achieved for the period under review. It includes the following:
• Conducting of annual risk-management reviews where business units were involved in a participatory process to quality assure the current CHIETA risk register, scoring of relevant inherent and residual risk and business interventions to be implemented in mitigation of organisational risks. This process lays a solid foundation in support of current and future CHIETA business planning processes.
• Successful governing board and board committee meetings were held, which translated into significant board mandates and strategic organisational direction, such as the approval and recommendation of the new CHIETA constitution to the Minister of HET, and approval of the CHIETA strategic plan for the MTEF period 2011/2012 - 2013/2014.
• Conclusion of recommendations to the Minister of HET on new governing board appointments and subsequent approval and announcement of the CHIETA governing board by the Honorable Minister on 8 April 2011.
• Above-average organisational performance on actual target achievement against targets agreed in the CHIETA Service Level Agreement of 2010/2011 with the DHET, illustrating the impact CHIETA made on skills-development initiatives in the chemical sector.
• Commencement of an inclusive and detailed CHIETA Legal Compliance Register, which will enable the continuous monitoring of the organisation’s compliance profile and the remedial interventions needed.
• Performance assessment of the internal and external auditors by the CHIETA audit committee.
• A self-assessment of performance conducted by the CHIETA audit committee.• Positive internal audit report indicating progress around controls and
performance on key business processes.
Trevor ChanningGroup Executive: Governance & Support Services
CHIETA ◊ Annual Report 2010 – 2011
32
HUMAN RESOURCES
• The year under review has had it challenges too, and the CHIETA team has learnt many lessons in 2010/2011. Functioning as a learning organisation and an organisational culture underpinned by performance and sustained improvement CHIETA has also drawn positive lessons from the year under review and which is currently standing us in good sted towards the implementation of an Integrated People Management Model to direct organisational behavior and performance towards direct delivery of the NSDS III targets and areas of delivery.
• CHIETA people will always remain our biggest business asset and organisational delivery will be dysfunctional if talent is not continuously nurtured, developed, recognised and retained.
• For the year ahead the CHIETA through a strong participatory and transparent process is also going to involve staff members in a detailed and integrated business planning process on directing organisational focus towards NSDS III delivery. We are confident that this will lay a solid foundation for labour peace and alignment of HR processes towards identified and agreed business deliverables.
• As required in terms of Treasury regulation 18.3.1 and in terms of the CHIETA disciplinary code it is also reported that the CEO, Ms Kelebogile Dilotsotlhe was suspended. Subsequently a separation agreement has been agreed to between CEO and the CHIETA Accounting Authority and subsequently being implemented.
• Under mentioned table indicates our current staff profile in the various occupational groupings of CHIETA.
CHIETA STAFF PROFILE
NA
ME
Exe
cuti
ve M
anag
er
Man
ager
Reg
ion
al S
kills
Ad
viso
r
Acc
ou
nta
nt
Sp
ecia
list
Pra
ctit
ion
er
Su
per
viso
r
Ad
min
istr
ato
r
Dat
a C
aptu
rer
Cal
l Cen
tre
Ag
ent
Fili
ng
Cle
rk
Offi
ce A
tten
dan
t
Cle
aner
Mal
e
Fem
ale
Afr
ican
Ind
ian
Co
lou
red
Wh
ite
Dis
able
d
Kelebogile
Dilotsotlhe (Former
CEO) √ √ √
Andiswa Nenemba √ √ √ Ayesha Itzkin (Acting
CEO) √ √ √ √
Bongani Maduna √ √ √
Governance and Support Services Business Unit
33
NA
ME
Exe
cuti
ve M
anag
er
Man
ager
Reg
ion
al S
kills
Ad
viso
r
Acc
ou
nta
nt
Sp
ecia
list
Pra
ctit
ion
er
Su
per
viso
r
Ad
min
istr
ato
r
Dat
a C
aptu
rer
Cal
l Cen
tre
Ag
ent
Fili
ng
Cle
rk
Offi
ce A
tten
dan
t
Cle
aner
Mal
e
Fem
ale
Afr
ican
Ind
ian
Co
lou
red
Wh
ite
Dis
able
d
Brenda Mhlongo √ √ √
Christancia Wangra √ √ √
Conrad Mphahlele √ √ √
Dorah Motaung √ √ √
Farhad Motala √ √ √
Fikile Makhoba √ √ √
Gape Tlolane √ √ √
Garret Benjamin √ √ √
Gift Thutse √ √ √
Gina Molefe √ √ √
Giyani Mabunda √ √ √
Gloria Henneker √ √ √
Glory Nyathi √ √ √
Happiness Mlambo √ √ √
Ivy Msomi √ √ √
Jerminah Hlapolosa √ √ √
Lerato Ramahuta √ √ √
Lindiwe Mazibuko √ √ √
Lindiwe Zungu √ √ √
Louise Dos Santos √ √ √
Lydia Matsipe √ √ √
Mandla Gcali √ √ √
Marriam Maduka √ √
Maud Matsie √ √ √
Medupi Marumo √ √ √
Morne Louis √ √ √
Mpumi Mlambo √ √ √
Munya Makota √ √ √
Nonhlanhla Kika √ √ √ Palesa
Mochongwane √ √ √
Rene Diergaadt √ √ √
Ronnie Naidoo √ √ √
Ruth Makwela √ √ √
Shaheen Buckus √ √ √
Solly Malatsi √ √ √
Stuurman Aphane √ √ √
Thabo Ntuli √ √ √
Thando Veyi √ √ √
Thembi Sekgobela √ √ √
CHIETA ◊ Annual Report 2010 – 2011
34
NA
ME
Exe
cuti
ve M
anag
er
Man
ager
Reg
ion
al S
kills
Ad
viso
r
Acc
ou
nta
nt
Sp
ecia
list
Pra
ctit
ion
er
Su
per
viso
r
Ad
min
istr
ato
r
Dat
a C
aptu
rer
Cal
l Cen
tre
Ag
ent
Fili
ng
Cle
rk
Offi
ce A
tten
dan
t
Cle
aner
Mal
e
Fem
ale
Afr
ican
Ind
ian
Co
lou
red
Wh
ite
Dis
able
d
Trevor Channing √ √ √
Wandile Dube √ √ √
Fazel Ernest √ √ √
Moegsien Harris √ √ √
Roger Adriaanse √ √ √
Nandipha Elijar √ √ √
Bongani Mtshali √ √ √
Bennet Kamanga √ √ √
Brenda Ledwaba √ √ √
Moshe Mokgalane √ √ √
Patrick Shingange √ √ √
Aline-John Naidu √ √ √
Beevash Gansan √ √ √
Olaf Normann √ √ √
Thulasizwe Kojane √ √ √
Rajen Naidoo √ √ √
Nelisiwe Gumede √ √ √
Joyce Mjiyakho √ √ √
Bulelwa Rwayi √ √ √ Mankwali
Mabunzana √ √ √
DATA MANAGEMENT UNIT
y The Data Management Unit and ETDQA business units have partnered to practice quality assurance on the issuing of learner, assessor and moderator certificates. Significant and continuous business improvement of internal processes and systems have seen an increase in stakeholder satisfaction with regard to performance and certification delivery. Exciting developments are in progress to upgrade and improve our Data Management Information Systems to ensure an integrated system of relevant management information that will transpire in pro-active planning, performance, and even more enhance service delivery to our stakeholders.
y We are also proud of the fact that CHIETA has maintained our green status with SAQA inclusive of an improved performance score illustrating the quality of our data integrity and management.
Governance and Support Services Business Unit
CHIETA ◊ Annual Report 2010 – 2011
36
Service Level Agreement (SLA) with the DoL and DHET
Su
cces
s In
dic
ato
rTa
rget
Qrt
1Q
rt 2
Qrt
3Q
rt 4
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l Ach
ieve
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nce
% A
chie
ved
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om
men
ts
1.2
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Fs
/ SS
250
136
7693
6537
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48
Ver
y fo
cuss
ed a
nd s
trat
egic
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rven
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by C
HIE
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spec
ific
and
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n in
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sed
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icip
atio
n
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ge10
012
5-2
51.
25A
chie
ved
thro
ugh
the
regi
onal
out
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h st
rate
gy
2.1
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ium
9015
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01.
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chie
ved
thro
ugh
the
regi
onal
out
reac
h st
rate
gy
2.2
Sm
all L
evy
Pay
ing
120
300
-180
2.5
Ach
ieve
d th
roug
h th
e re
gion
al o
utre
ach
stra
tegy
2.3
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ernm
ent D
epar
tmen
ts p
erso
nnel
bud
get
N/A
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/A
2.5
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all B
EE
/BE
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0
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all B
EE
250
250
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tem
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2.5
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all B
EE
Co-
ops
2017
173
0.85
Thi
s ta
rget
was
sup
port
ed th
roug
h th
e D
isc.
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nts
2.5
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l Su
pp
ort
ed45
00
017
1728
0.37
7778
Vo
uch
er S
yste
m C
hal
len
ges
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ayed
th
e im
ple
men
tati
on
2.7
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ET
1 R
egis
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50
023
634
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728
Thi
s ta
rget
was
sup
port
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roug
h th
e D
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nts
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Abe
t Lev
el 1
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ered
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ck M
ale
7912
5
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t Lev
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te M
ale
10
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zen
00
2.7
AB
ET
2 R
egis
tere
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1515
110
0.12
Due
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e lim
ited
need
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BE
T
2.7
Abe
t Lev
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Bla
ck M
ale
8
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te M
ale
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2.7
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ale
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ale
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37
Service Level Agreement (SLA) with the DoL and DHET
Su
cces
s In
dic
ato
rTa
rget
Qrt
1Q
rt 2
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rt 4
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l Ach
ieve
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% A
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om
men
ts
2.7
Abe
t Lev
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Ent
ered
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2.7
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ered
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zen
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2.7
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ET
4 R
egis
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50
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the
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ed fo
r AB
ET
2.7
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t Lev
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ered
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ale
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t Lev
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or
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chie
ved
100
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525
0-1
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5T
his
targ
et w
as s
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and
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ieve
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nts
2.7
Abe
t Lev
el 1
Ach
ieve
d B
lack
Mal
e20
442
2.7
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t Lev
el 1
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ieve
d B
lack
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ale
112
663
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t Lev
el 1
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ived
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te M
ale
10
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t Lev
el 1
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ieve
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20
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t Lev
el 1
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ieve
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WD
135
0
2.7
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el 1
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112
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ET
2 A
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100
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to th
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ited
need
for A
BE
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2.7
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t Lev
el 2
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ieve
d B
lack
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e0
2.7
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t Lev
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ieve
d B
lack
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ale
33
2.7
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t Lev
el 2
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ived
Whi
te M
ale
0
2.7
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t Lev
el 2
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ieve
d W
hite
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ale
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t Lev
el 2
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ieve
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33
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el 2
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ieve
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ieve
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ived
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te M
ale
0
CHIETA ◊ Annual Report 2010 – 2011
38
Service Level Agreement (SLA) with the DoL and DHET
Su
cces
s In
dic
ato
rTa
rget
Qrt
1Q
rt 2
Qrt
3Q
rt 4
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l Ach
ieve
dV
aria
nce
% A
chie
ved
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om
men
ts
2.7
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t Lev
el 3
Ach
ieve
d W
hite
Fem
ale
0
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t Lev
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ieve
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WD
9
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t Lev
el 3
Ach
ieve
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9
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t Lev
el 3
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ieve
d N
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2.7
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ET
4 A
chie
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100
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010
00
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ited
need
for A
BE
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TAL
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73D
ue
to t
he
limit
ed n
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fo
r A
BE
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2.8
Lea
rner
s (W
orke
rs)
Ent
ered
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rner
ship
s 19
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6186
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he C
HIE
TA h
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e-pr
iorit
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its
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ta
rget
s w
ith D
HeT
2.8
Lear
ners
hip
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ered
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ck M
ale
171
271
8828
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ners
hip
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ered
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ners
hip
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te M
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4923
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te F
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ered
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ners
hip
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ered
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zen
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Lea
rner
s (W
orke
rs)
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ered
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Sec
tion
13
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2140
67T
he C
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e-pr
iorit
ised
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ta
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ith D
HeT
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tion
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nter
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nter
ed P
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tion
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nter
ed Y
outh
62
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2.8
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tion
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nter
ed N
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itize
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ered
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tion
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he C
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iorit
ised
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rget
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ith D
HeT
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Sec
tion
28 E
nter
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lack
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2.8
Sec
tion
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nter
ed B
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39
Su
cces
s In
dic
ato
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rget
Qrt
1Q
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Qrt
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l Ach
ieve
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% A
chie
ved
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om
men
ts
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nter
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nter
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tion
28 E
nter
ed Y
outh
614
2.8
Sec
tion
28 E
nter
ed N
on S
A C
itize
n0
0
2.8
Lea
rner
s (W
orke
rs)
Ent
ered
Bur
sarie
s 75
069
071
140
-65
1.86
6667
A S
trat
egic
Bur
sary
Pro
gram
me
was
la
unch
ed w
ith th
e C
hem
ical
Indu
strie
s S
ecto
r
2.8
Bur
sary
Ent
ered
Bla
ck M
ale
926
2.8
Bur
sary
Ent
ered
Bla
ck F
emal
e33
18
2.8
Bur
sary
Ent
ered
Whi
te M
ale
1112
2.8
Bur
sary
Ent
ered
Whi
te F
emal
e16
15
2.8
Bur
sary
Ent
ered
You
th41
43
2.8
Bur
sary
Ent
ered
Non
SA
Citi
zen
00
2.8
Lea
rner
s (W
orke
rs)
Ent
ered
Inte
rnsh
ips
218
00
00
021
80
Due
to th
e lim
ited
need
for
Inte
rnsh
ips.
Em
ploy
ers
focu
ssed
on
Wor
kpla
ce
Exp
erie
nce
2.8
Inte
rnsh
ip E
nter
ed B
lack
Mal
e
2.8
Inte
rnsh
ip E
nter
ed B
lack
Fem
ale
2.8
Inte
rnsh
ip E
nter
ed W
hite
Mal
e
2.8
Inte
rnsh
ip E
nter
ed W
hite
Fem
ale
2.8
Inte
rnsh
ip E
nter
ed P
WD
2.8
Inte
rnsh
ip E
nter
ed Y
outh
2.8
Inte
rnsh
ip E
nter
ed N
on S
A C
ititz
en
2.8
Lea
rner
s (W
orke
rs)
Ent
ered
U/S
Ski
lls P
rogr
amm
es55
012
60
4653
070
2-1
521.
2763
64T
his
targ
et w
as s
uppo
rted
and
ach
ieve
d th
roug
h th
e D
isc.
Gra
nts
2.8
U/S
Ski
lls P
rogr
amm
es E
nter
ed B
lack
Mal
e12
520
350
2.8
U/S
Ski
lls P
rogr
amm
es E
nter
ed B
lack
Fem
ale
3024
81
2.8
U/S
Ski
lls P
rogr
amm
es E
nter
ed W
hite
Mal
e1
073
2.8
U/S
Ski
lls P
rogr
amm
es E
nter
ed W
hite
Fem
ale
62
26
2.8
U/S
Ski
lls P
rogr
amm
es E
nter
ed P
WD
00
2.8
U/S
Ski
lls P
rogr
amm
es E
nter
ed Y
outh
2027
3
2.8
U/S
Ski
lls P
rogr
amm
es E
nter
ed N
on S
A C
itize
n0
1
2.8
TO
TAL
EN
TE
RE
D40
6340
941
436
198
121
6518
980.
5328
57P
roje
ct R
epo
rts
wer
e o
uts
tan
din
g a
nd
co
uld
no
t b
e ca
ptu
red
.
2.8
Lea
rner
s (W
orke
rs)
Com
plet
ed L
earn
ersh
ips
1096
6637
8140
224
872
0.20
438
2.8
Lear
ners
hip
Com
plet
ed B
lack
Mal
e49
2752
35
Service Level Agreement (SLA) with the DoL and DHET
CHIETA ◊ Annual Report 2010 – 2011
40
Su
cces
s In
dic
ato
rTa
rget
Qrt
1Q
rt 2
Qrt
3Q
rt 4
Tota
l Ach
ieve
dV
aria
nce
% A
chie
ved
C
om
men
ts
2.8
Lear
ners
hip
Com
plet
ed B
lack
Fem
ale
68
5
2.8
Lear
ners
hip
Com
plet
ed W
hite
Mal
e14
321
0
2.8
Lear
ners
hip
Com
plet
ed W
hite
Fem
ale
31
00
2.8
Lear
ners
hip
Com
plet
ed P
WD
02
1
2.8
Lear
ners
hip
Com
plet
ed Y
outh
3469
16
2.8
Lear
ners
hip
Com
plet
ed N
on S
A C
itize
n4
03
2.8
Lea
rner
s (W
orke
rs)
Com
plet
ed M
TA S
ectio
n 13
24
80
12
710
238
0.04
0323
Pro
ject
Rep
orts
wer
e ou
tsta
ndin
g an
d co
uld
not b
e ca
ptur
ed.
2.8
Sec
tion
13 C
ompl
eted
Bla
ck M
ale
12
7
2.8
Sec
tion
13 C
ompl
eted
Bla
ck F
emal
e0
00
2.8
Sec
tion
13 C
ompl
eted
Whi
te M
ale
00
0
2.8
Sec
tion
13 C
ompl
eted
Whi
te F
emal
e0
00
2.8
Sec
tion
13 C
ompl
eted
PW
D0
00
2.8
Sec
tion
13 C
ompl
eted
You
th0
16
2.8
Sec
tion
13 C
ompl
eted
Non
SA
Citi
zen
00
0
2.8
Lea
rner
s (W
orke
rs)
Com
plet
ed M
TA S
ectio
n 28
49
083
2940
1917
131
90.
3489
8P
roje
ct R
epor
ts w
ere
outs
tand
ing
and
coul
d no
t be
capt
ured
.
2.8
Sec
tion
28 C
ompl
eted
Bla
ck M
ale
7123
2912
2.8
Sec
tion
28 C
ompl
eted
Bla
ck F
emal
e8
10
2
2.8
Sec
tion
28 C
ompl
eted
Whi
te M
ale
44
104
2.8
Sec
tion
28 C
ompl
eted
Whi
te F
emal
e0
11
2.8
Sec
tion
28 C
ompl
eted
PW
D1
00
2.8
Sec
tion
28 C
ompl
eted
You
th17
2212
2.8
Sec
tion
28 C
ompl
eted
Non
SA
Citi
zen
00
0
2.8
Lea
rner
s (W
orke
rs)
Com
plet
ed B
ursa
ries
380
065
065
-27
1.71
0526
A S
trat
egic
Bur
sary
Pro
gram
me
was
la
unch
ed w
ith th
e C
hem
ical
Indu
strie
s S
ecto
r
2.8
Bur
sary
Com
plet
ed B
lack
Mal
e9
2.8
Bur
sary
Com
plet
ed B
lack
Fem
ale
32
2.8
Bur
sary
Com
plet
ed W
hite
Mal
e16
2.8
Bur
sary
Com
plet
ed W
hite
Fem
ale
8
2.8
Bur
sary
Com
plet
ed P
WD
0
2.8
Bur
sary
Com
plet
ed Y
outh
40
2.8
Bur
sary
Com
plet
edE
nter
ed N
on S
A C
itize
n0
2.8
Lea
rner
s (W
orke
rs)
Com
plet
ed In
tern
ship
s12
80
00
1313
115
0.10
1563
Pro
ject
Rep
orts
wer
e ou
tsta
ndin
g an
d co
uld
not b
e ca
ptur
ed.
2.8
Inte
rnsh
ip C
ompl
eted
Bla
ck M
ale
7
Service Level Agreement (SLA) with the DoL and DHET
41
Su
cces
s In
dic
ato
rTa
rget
Qrt
1Q
rt 2
Qrt
3Q
rt 4
Tota
l Ach
ieve
dV
aria
nce
% A
chie
ved
C
om
men
ts
2.8
Inte
rnsh
ip C
ompl
eted
Bla
ck F
emal
e4
2.8
Inte
rnsh
ip C
ompl
eted
Whi
te M
ale
2
2.8
Inte
rnsh
ip C
ompl
eted
Whi
te F
emal
e0
2.8
Inte
rnsh
ip C
ompl
eted
PW
D0
2.8
Inte
rnsh
ip C
ompl
eted
You
th12
2.8
Inte
rnsh
ip C
ompl
eted
Non
SA
Citi
tzen
0
2.8
Lea
rner
s (W
orke
rs)
Com
plet
ed U
/S S
kills
Pro
gram
mes
275
011
42
8820
471
0.74
1818
Pro
ject
Rep
orts
wer
e ou
tsta
ndin
g an
d co
uld
not b
e ca
ptur
ed.
2.8
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Bla
ck M
ale
105
073
2.8
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Bla
ck F
emal
e9
010
2.8
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Whi
te M
ale
02
4
2.8
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Whi
te F
emal
e0
01
2.8
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
PW
D0
00
2.8
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
You
th21
126
2.8
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Non
SA
Citi
zen
00
2.8
TO
TAL
CO
MP
LE
TE
D22
7566
152
150
148
516
1759
0.22
6813
Pro
ject
Rep
ort
s w
ere
ou
tsta
nd
ing
an
d
cou
ld n
ot
be
cap
ture
d.
3.2
NLP
Es,
NG
Os,
CB
Os,
CO
-Ops
250
00
2121
40.
84T
he D
iscr
etio
nary
Gra
nts
fund
ing
win
dow
s in
corp
orat
ed th
ese
area
s.T
his
was
wel
l su
ppor
ted
by th
e N
LPE
s,N
GO
s,C
BO
s
3.2
NLP
Es
60
00
1919
-13
3.16
6667
3.2
NG
Os
70
00
00
70
3.2
CB
Os
50
00
22
30.
4
3.2
CO
-Ops
70
00
00
70
4.1
Lea
rner
s (U
nem
ploy
ed)
Ent
ered
Lea
rner
ship
s 95
784
936
132
837
319
11-9
541.
9968
65W
ell p
artic
ipat
ed th
roug
h th
e D
iscr
etio
nary
G
rant
s
4.1
Lear
ners
hip
Ent
ered
Bla
ck M
ale
550
228
190
260
4.1
Lear
ners
hip
Ent
ered
Bla
ck F
emal
e19
495
7582
4.1
Lear
ners
hip
Ent
ered
Whi
te M
ale
9229
6329
4.1
Lear
ners
hip
Ent
ered
Whi
te F
emal
e3
30
2
4.1
Lear
ners
hip
Ent
ered
PW
D10
32
3
4.1
Lear
ners
hip
Ent
ered
You
th34
431
836
2
4.1
Lear
ners
hip
Ent
ered
Non
SA
Citi
zen
11
0
4.1
Lea
rner
s (U
nem
ploy
ed)
Ent
ered
MTA
Sec
tion
13
164
00
03
316
10.
0182
93P
roje
ct R
epor
ts w
ere
outs
tand
ing
and
coul
d no
t be
capt
ured
.
4.1
Sec
tion
13 E
nter
ed B
lack
Mal
e2
4.1
Sec
tion
13 E
nter
ed B
lack
Fem
ale
1
Service Level Agreement (SLA) with the DoL and DHET
CHIETA ◊ Annual Report 2010 – 2011
42
Su
cces
s In
dic
ato
rTa
rget
Qrt
1Q
rt 2
Qrt
3Q
rt 4
Tota
l Ach
ieve
dV
aria
nce
% A
chie
ved
C
om
men
ts
4.1
Sec
tion
13 E
nter
ed W
hite
Mal
e0
4.1
Sec
tion
13 E
nter
ed W
hite
Fem
ale
0
4.1
Sec
tion
13 E
nter
ed P
WD
0
4.1
Sec
tion
13 E
nter
ed Y
outh
2
4.1
Sec
tion
13 E
nter
ed N
on S
A C
itize
n0
4.1
Lea
rner
s (U
nem
ploy
ed)
Ent
ered
MTA
Sec
tion
28
344
143
107
012
422
00.
3604
65P
roje
ct R
epor
ts w
ere
outs
tand
ing
and
coul
d no
t be
capt
ured
.
4.1
Sec
tion
28 E
nter
ed B
lack
Mal
e8
260
4.1
Sec
tion
28 E
nter
ed B
lack
Fem
ale
041
4.1
Sec
tion
28 E
nter
ed W
hite
Mal
e6
16
4.1
Sec
tion
28 E
nter
ed W
hite
Fem
ale
00
4.1
Sec
tion
28 E
nter
ed P
WD
01
4.1
Sec
tion
28 E
nter
ed Y
outh
110
1
4.1
Sec
tion
28 E
nter
ed N
on S
A C
itize
n0
0
4.1
Lea
rner
s (U
nem
ploy
ed)
Ent
ered
Bur
sarie
s 75
00
00
075
0D
ue to
the
limite
d ne
ed fo
r U
nem
ploy
ed to
pa
rtic
ipat
e in
the
Bur
sary
Pro
gram
me.
4.1
Bur
sary
Ent
ered
Bla
ck M
ale
4.1
Bur
sary
Ent
ered
Bla
ck F
emal
e
4.1
Bur
sary
Ent
ered
Whi
te M
ale
4.1
Bur
sary
Ent
ered
Whi
te F
emal
e
4.1
Bur
sary
Ent
ered
PW
D
4.1
Bur
sary
Ent
ered
You
th
4.1
Bur
sary
Ent
ered
Non
SA
Citi
zen
4.1
Lea
rner
s (U
nem
ploy
ed)
Ent
ered
Inte
rnsh
ips
117
180
76
3186
0.26
4957
Due
to th
e lim
ited
need
for
Inte
rnsh
ips.
Em
ploy
ers
focu
ssed
on
Wor
kpla
ce
Exp
erie
nce
4.1
Inte
rnsh
ip E
nter
ed B
lack
Mal
e5
01
4.1
Inte
rnsh
ip E
nter
ed B
lack
Fem
ale
137
5
4.1
Inte
rnsh
ip E
nter
ed W
hite
Mal
e0
4.1
Inte
rnsh
ip E
nter
ed W
hite
Fem
ale
0
4.1
Inte
rnsh
ip E
nter
ed P
WD
0
4.1
Inte
rnsh
ip E
nter
ed Y
outh
6
4.1
Inte
rnsh
ip E
nter
ed N
on S
A C
ititz
en0
4.1
Lea
rner
s (U
nem
ploy
ed)
Ent
ered
U/S
Ski
lls P
rogr
amm
es27
50
00
469
469
-194
1.70
5455
Wel
l par
ticip
ated
thro
ugh
the
Dis
cret
iona
ry
Gra
nts
4.1
U/S
Ski
lls P
rogr
amm
es E
nter
ed B
lack
Mal
e30
0
4.1
U/S
Ski
lls P
rogr
amm
es E
nter
ed B
lack
Fem
ale
151
4.1
U/S
Ski
lls P
rogr
amm
es E
nter
ed W
hite
Mal
e8
4.1.
U/S
Ski
lls P
rogr
amm
es E
nter
ed W
hite
Fem
ale
10
Service Level Agreement (SLA) with the DoL and DHET
43
Su
cces
s In
dic
ato
rTa
rget
Qrt
1Q
rt 2
Qrt
3Q
rt 4
Tota
l Ach
ieve
dV
aria
nce
% A
chie
ved
C
om
men
ts
4.1
U/S
Ski
lls P
rogr
amm
es E
nter
ed P
WD
0
4.1
U/S
Ski
lls P
rogr
amm
es E
nter
ed Y
outh
425
4.1
U/S
Ski
lls P
rogr
amm
es E
nter
ed N
on S
A C
itize
n0
4.1
TO
TAL
EN
TE
RE
D19
3286
336
443
584
525
07-5
751.
2976
19W
ell p
artic
ipat
ed th
roug
h th
e D
iscr
etio
nary
G
rant
s
4.1
Lea
rner
s (U
nem
ploy
ed)
Com
plet
ed L
earn
ersh
ips
345
622
204
413
320
1559
-121
44.
5188
41
Lear
ners
had
com
plet
ed th
eir
theo
ry a
nd
prac
tice
in th
eir
resp
ectiv
e le
arne
rshi
ps th
at
resu
lted
in th
is a
chie
vem
ent.P
roje
ct r
epor
ts
that
wer
e ou
tsta
ndin
g ha
ve b
een
subm
itted
.
4.1
Lear
ners
hip
Com
plet
ed B
lack
Mal
e45
813
130
321
8
4.1
Lear
ners
hip
Com
plet
ed B
lack
Fem
ale
9839
6353
4.1
Lear
ners
hip
Com
plet
ed W
hite
Mal
e63
3046
46
4.1
Lear
ners
hip
Com
plet
ed W
hite
Fem
ale
22
13
4.1
Lear
ners
hip
Com
plet
ed P
WD
10
15
4.1
Lear
ners
hip
Com
plet
ed Y
outh
198
408
311
4.1
Lear
ners
hip
Com
plet
ed N
on S
A C
itize
n0
00
4.1
Lea
rner
s (U
nem
ploy
ed)
Com
plet
ed M
TA S
ectio
n 13
60
00
00
060
0P
roje
ct R
epor
ts w
ere
outs
tand
ing
and
coul
d no
t be
capt
ured
.
4.1
Sec
tion
13 C
ompl
eted
Bla
ck M
ale
4.1
Sec
tion
13 C
ompl
eted
Bla
ck F
emal
e
4.1
Sec
tion
13 C
ompl
eted
Whi
te M
ale
4.1
Sec
tion
13 C
ompl
eted
Whi
te F
emal
e
4.1
Sec
tion
13 C
ompl
eted
PW
D
4.1
Sec
tion
13 C
ompl
eted
ente
red
You
th
4.1
Sec
tion
13 C
ompl
eted
Non
SA
Citi
zen
4.1
Lea
rner
s (U
nem
ploy
ed)
Com
plet
ed M
TA S
ectio
n 28
12
328
2515
1987
360.
7073
17P
roje
ct R
epor
ts w
ere
outs
tand
ing
and
coul
d no
t be
capt
ured
.
4.1
Sec
tion
28 C
ompl
eted
Bla
ck M
ale
2324
1117
4.1
Sec
tion
28 C
ompl
eted
Bla
ck F
emal
e5
10
2
4.1
Sec
tion
28 C
ompl
eted
Whi
te M
ale
03
0
4.1
Sec
tion
28 C
ompl
eted
Whi
te F
emal
e0
10
4.1
Sec
tion
28 C
ompl
eted
PW
D0
10
4.1
Sec
tion
28 C
ompl
eted
You
th23
918
4.1
Sec
tion
28 C
ompl
eted
Non
SA
Citi
zen
00
0
4.1
Lea
rner
s (U
nem
ploy
ed)
Com
plet
ed B
ursa
ries
280
00
00
280
Pro
ject
Rep
orts
wer
e ou
tsta
ndin
g an
d co
uld
not b
e ca
ptur
ed.
4.1
Bur
sary
Com
plet
ed B
lack
Mal
e
4.1
Bur
sary
Com
plet
ed B
lack
Fem
ale
Service Level Agreement (SLA) with the DoL and DHET
CHIETA ◊ Annual Report 2010 – 2011
44
Su
cces
s In
dic
ato
rTa
rget
Qrt
1Q
rt 2
Qrt
3Q
rt 4
Tota
l Ach
ieve
dV
aria
nce
% A
chie
ved
C
om
men
ts
4.1
Bur
sary
Com
plet
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hite
Mal
e
4.1
Bur
sary
Com
plet
ed W
hite
Fem
ale
4.1
Bur
sary
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plet
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WD
4.1
Bur
sary
Com
plet
ed Y
outh
4.1
Bur
sary
Com
plet
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on S
A C
itize
n
4.1
Lea
rner
s (U
nem
ploy
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Com
plet
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tern
ship
s44
00
00
044
0P
roje
ct R
epor
ts w
ere
outs
tand
ing
and
coul
d no
t be
capt
ured
.
4.1
Inte
rnsh
ip C
ompl
eted
Bla
ck M
ale
4.1
Inte
rnsh
ip C
ompl
eted
Bla
ck F
emal
e
4.1
Inte
rnsh
ip C
ompl
eted
Whi
te M
ale
4.1
Inte
rnsh
ip C
ompl
eted
Whi
te F
emal
e
4.1
Inte
rnsh
ip C
ompl
eted
PW
D
4.1
Inte
rnsh
ip C
ompl
eted
You
th
4.1
Inte
rnsh
ip C
ompl
eted
Non
SA
Citi
tzen
4.1
Lea
rner
s (U
nem
ploy
ed)
Com
plet
ed U
/S S
kills
Pro
gram
mes
138
00
00
013
80
Pro
ject
Rep
orts
wer
e ou
tsta
ndin
g an
d co
uld
not b
e ca
ptur
ed.
4.1
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Bla
ck M
ale
4.1
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Bla
ck F
emal
e
4.1
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Whi
te M
ale
4.1.
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Whi
te F
emal
e
4.1
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
PW
D
4.1
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
You
th
4.1
U/S
Ski
lls P
rogr
amm
es C
ompl
eted
Non
SA
Citi
zen
TO
TAL
CO
MP
LE
TE
D73
865
022
942
833
916
46-9
082.
2303
52
Lea
rner
s h
ad c
om
ple
ted
th
eir
Lea
rnin
g
Pro
gra
mm
es w
ith
in t
he
tim
efra
mes
th
at
resu
lted
in t
his
ach
ieve
men
t.P
roje
ct
rep
ort
s th
at w
ere
ou
tsta
nd
ing
hav
e b
een
su
bm
itte
d.
4.2
Lear
ners
in C
ritic
al S
kills
4.2
Lear
ners
in C
ritic
al S
kills
Bla
ck M
ale
00
4.2
Lear
ners
in C
ritic
a S
kills
Bla
ck F
emal
e0
0
4.2
Lear
ners
in C
ritic
al S
kills
Whi
te M
ale
00
4.2
Lear
ners
in C
ritic
al S
kills
Whi
te F
emal
e0
0
4.2
Lear
ners
in C
ritic
al S
kills
PW
D0
0
4.2
Lear
ners
in C
ritic
al S
kills
You
th0
0
4.2
Lear
ners
in C
ritic
al S
kills
Non
SA
Citi
zen
00
Service Level Agreement (SLA) with the DoL and DHET
45
Su
cces
s In
dic
ato
rTa
rget
Qrt
1Q
rt 2
Qrt
3Q
rt 4
Tota
l Ach
ieve
dV
aria
nce
% A
chie
ved
C
om
men
ts
4.2
Wor
kpla
ce E
xper
ienc
e pl
aced
750
6321
2547
156
594
0.20
8P
roje
ct R
epor
ts w
ere
outs
tand
ing
and
coul
d no
t be
capt
ured
.
4.2
Lear
ners
in C
ritic
a S
kills
Bla
ck M
ale
1711
1424
4.2
Lear
ners
in C
ritic
al S
kills
Bla
ck F
emal
e18
1011
23
4.2
Lear
ners
in C
ritic
al S
kills
Whi
te M
ale
10
00
4.2
Lear
ners
in C
ritic
al S
kills
Whi
te F
emal
e4
00
0
4.2
Lear
ners
in C
ritic
al S
kills
PW
D0
00
4.2
Lear
ners
in C
ritic
al S
kills
You
th21
2547
4.2
Lear
ners
in C
ritic
al S
kills
Non
SA
Citi
zen
21
1
4.3
NV
C E
nter
ed20
00
200
405
425
-225
2.12
5A
Dis
cret
iona
ry G
rant
s F
undi
ng W
indo
w
was
initi
ated
to a
ddre
ss th
is ta
rget
4.3
NV
C T
rain
ed B
lack
Mal
e12
142
4.3
NV
C T
rain
ed B
lack
Fem
ale
824
7
4.3
NV
C T
rain
ed W
hite
Mal
e0
2
4.3
NV
C T
rain
ed W
hite
Fem
ale
014
4.3
NV
C T
rain
ed P
WD
00
4.3
NV
C T
rain
ed Y
outh
2027
1
4.3
NV
C T
rain
ed N
on S
A C
itize
n 0
1
4.3
NV
C S
usta
ined
100
00
068
6832
0.68
Pro
ject
Rep
orts
wer
e ou
tsta
ndin
g an
d co
uld
not b
e ca
ptur
ed.
4.3
NV
C S
usta
ined
Bla
ck M
ale
39
4.3
NV
C S
usta
ined
Bla
ck F
emal
e29
4.3
NV
C S
usta
ined
Whi
te M
ale
0
4.3
NV
C S
usta
ined
Whi
te F
emal
e0
4.3
NV
C S
usta
ined
PW
D0
4.3
NV
C S
usta
ined
You
th49
4.3
NV
C S
usta
ined
Non
SA
Citi
zen
0
5.1
ISO
Es
50
50
MoA
s ar
e ou
tsta
ndin
g an
d re
quire
s si
gnat
ures
5.2
NV
C In
stitu
tions
30
30
Pro
ject
Rep
orts
wer
e ou
tsta
ndin
g an
d co
uld
not b
e ca
ptur
ed.
SE
TA C
EO
SIG
N
DA
TE
Service Level Agreement (SLA) with the DoL and DHET
CHIETA ◊ Annual Report 2010 – 2011
46
Unqualified audit opinion:
For the tenth consecutive year since its inception, the CHIETA has obtained an unqualified audit opinion for the financial year ended 31 March 2011. This achievement once again confirms the high levels of integrity of financial management practices and financial accountability within the organisation.
Revenue:
Skills-development levy income earned increased by 11%, from R268.6 million for the year ended 31 March 2010 to R297.2 million for the year ended 31 March 2011. Total revenue earned increased by 8%, from R291.9 million in the prior period to R315.6 million in the current financial year.
The contribution of the return of invested funds to total revenue was R17 million, representing approximately 5% of total revenue.
• Analysis of trends in skills development levy income and member companies. Skills-development levy income has increased substantially since inception.
Total actual SDL income received for the year ended 31 March 2011 was 641% above the SDL income for the year ended 31 March 2001 (for the entire period since inception to date, SDL income has escalated by an annual equivalent average of approximately 27%, materially exceeding both inflation and estimated annual salary increment in the chemical sector in each year). The CHIETA experienced a substantial increase in the number of levy-paying companies since inception to date. The total number of levy-paying companies increased by over 93% from inception to 31 March 2011.
Finance Business Unit Report
Farhad MotalaChief Financial Officer
47
Figure 1
Expenditure:
Administrative expenditure remained within the legislated 10% maximum allowed by the skills-development funding regulations. The CHIETA realised a saving of over R1.8 million on administration expenses for the fi nancial year ended 31 March 2010. This amount, together with the total investment return of R17 million and unclaimed mandatory grants to the value of R31.4 million was transferred to the discretionary reserve at year end, to be utilised for discretionary grants and identifi ed projects for sector skills priorities.
Employer grants and project expenditure decreased by 1% during the fi nancial year from R242-9 million in 2010 to R239.4 million for the year ended 31 March 2011. Expenses on mandatory grants represented 83% of the skills-development levy income received for the purposes of mandatory grants. An amount of R74.3 million was earned as discretionary grant levy income and R85.1 million was expensed in discretionary grants and projects during the period.
• Financial viability and going concern.
Figure 2 shows administration income received against administration expenditure from 2001 to 2011. The CHIETA has sustained its level of operations within the 10% legislated administration provision in each year since inception without compromising achievement of its SLA and strategic objectives. Savings in actual operational expenditure from 2001 to 2011 of over R26.4 million was reallocated to discretionary reserves and utilised in discretionary grants for chemical sector skills priorities. These savings are attributed to continuous development of expenditure control and procurement practices within the CHIETA as well as streamlined, effective and effi cient human resource capacity.
CHIETA ◊ Annual Report 2010 – 2011
48
Figure 2
• Levy Grant Disbursement as per NSDS targets exceeded over the period of existence.
The CHIETA has exceeded its NSDS targets for grant disbursement for each year since inception.
Figure 3 shows the total SDL income received for grants in each year since inception compared to the total grant and project expenses during this period. The CHIETA has achieved an average disbursement rate of over 90% for the entire period since inception.
Figure 3
Finance Business Unit Report
49
Funds, reserves and commitments:
An amount of R33.3 million was transferred to the discretionary reserve to be utilised for discretionary grants and sector prioritised projects based on national and sector skills development priorities and on scarce and critical skills identified. The total funds available in the discretionary reserve increased by R40.7 million from R243.6 million at 31 March 2010 to R284.4 million at 31 March 2011. Of the R284.4 million in the discretionary reserve as at 31 March 2011, R156.8 million is committed to discretionary grants for which substantial contractual obligations have been met. A further amount of R140 million is in the process of allocation by the discretionary grant review committee and a further amount of R36 million has been allocated to strategic projects and skills priorities.
CHIETA ◊ Annual Report 2010 – 2011
50
The report of the Audit Committee has been prepared in accordance with the Treasury Regulations for Public Entities 27.1.7 and 27.1.10 (b) and (c) issued in terms of the Public Finance Management Act 1 of 1999, as amended by Act 29 of 1999.
We are pleased to present our report for the financial year ended 31 March 2011.
Audit Committee Members and Attendance
The Audit Committee consists of the members listed hereunder and is required to meet two times per annum as per its approved terms of reference. During the current year four meetings were held.
Summary of meetings attended per independent member:
NAME 20/05/2010 21/07/2010 13/01/2011 31/03/2011
Mr J L Davis (chairperson) √ √ √ √
Adv F Mukaddam √ √ X √
Mr C Erasmus √ X √ √
Mr M Kepadisa √ √ X X
Mrs L Joubert √ √ √ X1
√ Attended meeting;X Apologies tendered – did not attend;X1 Mrs L Joubert resigned from the Audit Committee at the meeting of 13 January 2011.
Audit Committee Responsibilities
The Audit Committee reports that it has adopted appropriate formal terms of reference as its audit committee charter, has regulated its affairs in compliance with this charter as well as the recommendations of the King III code of Corporate Governance, and has discharged all its responsibilities as contained therein.
The system of controls within the CHIETA is designed to provide reasonable assurance that assets are safeguarded and that liabilities and working capital are properly managed in line with the PFMA and the Protocol on Corporate Governance for public entities. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes.
From the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements and the management letter of the Auditor-General, we conclude that the existing control environment requires improvement in order to provide a reasonable
Report of the Audit Committee for the year ended 31 March 2011
51
assurance that the organisation’s goals and objectives are being achieved. There are areas that have been highlighted in various reports of the Internal Audit and the Auditor-General, where the internal control systems require corrective action. The Audit Committee will monitor management’s progress in urgently resolving these matters on a regular basis, as required in terms of the Audit Committee Charter
Evaluation of financial statements
The Audit Committee has:
• Reviewed and discussed the Audited Annual Financial Statements to be included in the annual report with the Auditor-General and the Accounting Authority;
• Reviewed the Auditor-General’s management report and management’s response thereto; and
• Reviewed adjustments resulting from the audit.
The Audit Committee concurs and accepts the Auditor-General’s conclusion on the annual financial statements and is of the opinion that the Audited Annual Financial Statements be accepted and read together with the report of the Auditor-General.
J L DavisChairperson of the Audit Committee
Report of the Audit Committee for the year ended 31 March 2011
CHIETA ◊ Annual Report 2010 – 2011
52
Report of the Auditor-General
REPORT OF THE AUDITOR-GENERAL TO THE PARLIAMENT ON THE FINANCIAL STATEMENTS OF THE CHEMICAL INDUSTRIES EDUCATION AND TRAINING AUTHORITY
REPORT ON THE FINANCIAL STATEMENTS
Introduction
1. I have audited the accompanying financial statements of the Chemical Industries Education and Training Authority which comprise the statement of financial performance, the statement of financial position as at 31 March 2011, statement of changes in net assets, cash flow statement for the year then ended, a summary of significant accounting policies and the accounting authority’s report as set out on pages 56 to 99.
Accounting authority’s responsibility for the financial statements
2. The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with the Standards of Generally Recognised Accounting Practices and the requirements of the Public Finance Management Act, and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-General’s responsibility
3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) and section 4 of the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and section 40(2) of the Public Finance Management Act 1999 (Act No. 1 of 1999), my responsibility is to express an opinion on these financial statements based on my audit.
4. I conducted my audit in accordance with International Standards on Auditing and General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant
53
Report of the Auditor-General
to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
6. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
7. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Chemical Industries Education and Training Authority as at 31 March 2011, and its financial performance and cash flows for the year then ended in accordance with South African standards of Generally Recognised Accounting Practice and in the matter required by the Public Finance Management Act of South Africa.
Emphasis of matter
8. I draw attention to the matters below. My opinion is not modified in respect of these matters:
Irregular, Fruitless and wasteful expenditure
9. As disclosed in note 18 to the financial statements, CHIETA incurred fruitless and wasteful expenditure of R1 828 763 relating to rent paid for property which was not occupied. Furthermore, the entity incurred irregular expenditure of R584 339 as the expenditure incurred was in contravention of Treasury Regulation 16A.6.1 and 16A.6.4 relating to supply chain management.
Contingent liabilities
10. As disclosed in note 23 to the financial statements, CHIETA is a defendant in a legal case instituted against the entity during the year under review. At the date of this report the outcome of this case was unknown, thus CHIETA disclosed a contingent liability of R7 771 924.
11. As disclosed in note 23 to the financial statements, CHIETA signed a guarantee of R561 492 which was in respect of the lease rental of property not occupied.
CHIETA ◊ Annual Report 2010 – 2011
54
Report of the Auditor-General
Contingent asset
12. As disclosed in note 23 to the financial statements, CHIETA has instituted a counter claim of R1 706 936 being in respect of the recovery of the lease rentals paid on property not occupied.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
13. In accordance with the PAA and in terms of General Notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I include below my findings on the annual performance report as set out on pages 36 to 45 and material non-compliance with laws and regulations applicable to the entity.
Predetermined objectives
14. There were no material findings on the annual performance report concerning the presentation, usefulness and reliability of the information.
Compliance with laws and regulations
Procurement and contract management
15. Goods and services with a transaction value of between R10 000 and R500 000 were procured without inviting at least three written price quotations from prospective suppliers, as per the requirement of Practice Note 8 of 2007-08 issued in terms of section 76(4)(c) of the PFMA.
INTERNAL CONTROL
16. In accordance with the PAA and in terms of General Notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I considered internal control relevant to my audit, but not for the purpose of expressing an opinion on the effectiveness of internal control. The matters reported below are limited to the significant deficiencies that resulted in the emphasis of matter, misstatements corrected by management on the financial statements and findings on compliance with laws and regulations included in this report
Leadership
17. The accounting officer did not maintain effective leadership based on a culture of honesty, ethical business practices and good governance to protect and enhance the interests of the entity.
55
18. Lack of oversight and disregard regarding internal controls over financial management and compliance with procurement laws and regulations.
OTHER REPORTS
Investigations
19. An investigation was conducted by an independent consulting firm on request of the accounting authority. The investigation was initiated based on the allegation of possible misappropriation of the entity resources by the accounting officer. The investigation resulted in suspension of the accounting officer and subsequent mutual separation agreement.
Pretoria31 July 2011
Report of the Auditor-General
CHIETA ◊ Annual Report 2010 – 2011
56
Annual Financial Statementsfor the year ended 31 March 2011
The Annual Financial Statements for the year ended 31 March 2011, set out on pages 56 to 99, have been approved by the Accounting Authority in terms of section 51(1) (f) of the Public Finance Management Act (PFMA), No 1 of 1999, as amended, on 26 May 2011, and are signed on their behalf by:
Ayesha Itzkin Nolitha Fakude Acting Chief Executive Officer Chairperson of the Accounting Authority
Content Page
Report of the Accounting Authority 57 – 61
Statement of Financial Performance 63
Statement of Financial Position 64
Statement of Changes in Net Assets 65
Cash Flow Statement 66
Accounting Policies to the Annual Financial Statements 67 – 78
Notes to the Annual Financial Statements 79 – 99
57
Report of the Accounting Authorityfor the year ended 31 March 2011
26 May 2011
Report by the Accounting Authority to the Executive Authority/Provincial Legislature and Parliament of the Republic of South Africa.
1. General review of the state of affairs
During the period under review, the Chemical Industries Education and Training Authority (CHIETA) realised an 11% increase in skills-development levy income in comparison to the levy income earned for the year ended 31 March 2011. Return on invested funds accounted for R17 million of total revenue, and decreased by 7.7% from the previous year due to the substantially lower average interest rates available on short-term money market investments during the financial year.
The CHIETA expensed over R239.4 million in employer grants and project expenses representing more than 92% of available grant levy income of approximately R260.1 million for the financial year ended 31 March 2011.
The CHIETA administration expenditure remained within the 10% margin prescribed by the skills-development regulations, and administration savings of over R1.8 million were transferred to the discretionary fund reserve at 31 March 2011.
During the year under review, applications for discretionary grants were once again oversubscribed. After evaluation according to the established criteria, awards of more than R89 million were approved. The nature of initiatives supported included:
• Programmes supporting learners on registered learnerships and workplace experience;
• Supporting of scarce and critical skills; and• Honouring apprenticeship and artisan training commitments and prioritising
new apprenticeship programmes.
It is the opinion of the accounting authority that the expenditure incurred during the year under review has been well-accounted for and that the projects and programmes undertaken have considerably benefited the chemical industries sector.
CHIETA ◊ Annual Report 2010 – 2011
58
Report of the Accounting Authorityfor the year ended 31 March 2011
2. Services rendered by the public entity and tariff policy
The CHIETA is a schedule 3A public entity enacted by the Minister of Labour in terms of the Skills-Development Act and governed by the Public Finance Management Act No.1 of 1999, as amended. The CHIETA facilitates skills-development in the chemical sector. No tariff is charged for services rendered. The CHIETA is funded through skills-development levies contributed in terms of the Skills-Development Act by employers in the chemical industries sector.
3. Capacity constraints
While certain capacity constraints were experienced by the organisation for the year under review, these did not impact on the ultimate delivery by the CHIETA to its stakeholders, nor was the achievement of our strategic objectives compromised.
4. Utilisation of donor funds
No donor funds were received or expended by the CHIETA for the year under review.
5. Business address
2 Clamart Road, Richmond, Johannesburg, 2193.
6. Controlled entities and public entities
The CHIETA does not exercise control over any other entities, agencies, organisations or public entities.
7. Other organisations to whom transfer payments have been made
No transfer payments were made by the CHIETA to any other party during the period under review.
8. Public private partnerships (PPP)
No public private partnerships were entered into during the period under review.
9. Discontinued activities/activities to be discontinued
No discontinued activities or closure of any major part of the business have occurred during the financial period under review.
59
Report of the Accounting Authorityfor the year ended 31 March 2011
10. New/proposed activities
No new activities have been proposed.
11. Re-licensing
The CHIETA has been re-established for a five-year period until 31 March 2016.
12. Corporate governance
12.1 Corporate governance and compliance with the PFMA
The CHIETA has implemented the recommendations of the Public Finance Management Act and the King Report on Corporate Governance. The CHIETA audit committee met regularly during the financial year in order to perform, inter-alia the following:
• The oversight role over the internal audit function; • Review of the CHIETA’s financial statements and management accounts;• Assessment and review of a fraud-prevention plan and code of ethics; • Annual independent review and update of policies, procedures and PFMA
compliance by the internal and external audit function;• Annual risk-assessment and update; and• Tracking and implementation of internal audit recommendations by audit
committee and governance structures.
12.2 Financial risk-management and systems of control
Section 38(a) of the PFMA requires the accounting authority of a public entity to implement and maintain effective, efficient and transparent systems of financial and risk-management and internal controls. The CHIETA has developed detailed financial policies and procedures, and a quality-management system to guide internal processes. The CHIETA has implemented various measures to ensure that public funds are managed as required by the PFMA, treasury regulations, other applicable acts and regulations. The internal and external auditors’ also conduct regular compliance reviews. While the CHIETA has maintained a robust and effective control environment, policy deviations and unauthorised instructions emanating from the former CEO’s office resulted in certain controls being compromised. These were, however, timeously identified and responded to, mitigating the resultant risk.
CHIETA ◊ Annual Report 2010 – 2011
60
Report of the Accounting Authorityfor the year ended 31 March 2011
12.3 Expenditure control and procurement framework
The CHIETA has developed a robust framework for expenditure control, governed by various policies, procedures, delegations and systems, which are updated on a regular basis. A supply-chain management policy framework is fully implemented in line with the preferential procurement practice framework act and supply-chain management regulations. These policies and procedures are reviewed regularly by the CHIETA staff, internal auditors and the procurement committee, and adjusted to ensure that current updates in procurement practices are adhered to by the entity.
12.4 CHIETA infrastructure and security over assets and income
The CHIETA net asset base was approximately R290 million at 31 March 2011. Total net assets increased by approximately R40.7 million as at the financial year ended 31 March 2011.
12.5 Governing board and executive committee meetings
Governing board members attend quarterly meetings and discuss strategic matters focusing on delivery of the CHIETA mandate.
12.6 Voluntary commitment to NSDS by the CHIETA board members
The CHIETA governing board members did not receive any remuneration for their services on the CHIETA governance structures. This is a strong indication of the mutual commitment and partnerships established within the chemical sector, and the CHIETA management structures.
12.7 Promotion of accountability and transparency
12.7.1 Audit Committee
The Audit Committee functions in terms of section 47 of the PFMA and performs a critical governance function. As with the board, its constitutional structure and operation have been considered in relation to best practice recommendations in terms of the King Report and the protocols on corporate governance.
12.7.2 Management committee
Through involvement with day-to-day business activities, the CHIETA chief executive officer and the management team are responsible for ensuring that decisions, strategies and views of the board are implemented.
61
Report of the Accounting Authorityfor the year ended 31 March 2011
12.7.3 Employees
The Human Resources Strategy is founded on human capital development. It also addresses issues that create the conditions and opportunities for previously disadvantaged individuals to take their rightful place at all levels.
12.7.4 Employment equity
There is continual monitoring and enforcement of employment equity practices.
13. Events after balance sheet date
As required in terms of Treasury regulation 18.3.1 and in terms of the CHIETA disciplinary code it is also reported that the CEO, Ms Kelebogile Dilotsotlhe was suspended. Subsequently a separation agreement has been agreed to between CEO and the CHIETA Accounting Authority and subsequently being implemented.
14. Emoluments of senior management:
Name Designation Basic AllowancesProvident
fundPerformance
bonusTotal
Kelebogile Dilotsotlhe
CEO 958 537 189 000 196 722 – 1 344 259
Ayesha Itzkin
ETDQA Executive
646 533 123 672 132 036 51 482 953 722
Farhad Motala
CFO 774 964 189 000 163 683 67 730 1 195 377
Fazel Ernest
COO 852 421 57 000 155 902 59 407 1 124 730
Trevor Channing
Governance and Risk Executive
456 885 381 945 143 800 55 950 1 038 580
Total 3 689 339 940 617 792 143 234 569 5 656 668
Chairperson of the CHIETA Accounting Authority26 May 2011
CHIETA ◊ Annual Report 2010 – 2011
62
CHIETA Governing Board 2011/2012
Name Gender Race ConstituencyPosition on
BoardBertie van Baalen M W Employer - Base Chemicals Voting MemberMerwe Van Pletsen M W Employer - Petroleum Voting MemberJan Smit M W Employer - Speciality Chemicals Voting MemberFrans Germishuizen M W Employer - Surface Coatings Voting MemberJacqui Klaasen F W Employer - Explosives Voting MemberNo Nominations Employer - FertilizersAdelien Robbertse F W Employer - Pharmaceuticals Voting Member
No NominationsEmployer – Fast Moving Consumer
GoodsTshepo Naka M A Employer - Glass Voting MemberJacob Mabena M A Labour - CEPPWAWU Voting MemberOracular Siqingqi M A Labour - CEPPWAWU Voting MemberSam Xaba M A Labour - CEPPWAWU Voting MemberBrian Muir M C Labour - UASA Voting MemberPiet du Plooy M W Labour - Solidarity Voting MemberAdele van den Berg F W Labour - Solidarity Voting MemberMosehle Mampho M A Labour - SACWU Voting MemberGeorge Johannes M C Labour - SACWU Voting MemberMichael Nhlapho M A Labour - SACWU Voting MemberDan Nkotsoe M A Labour - GIWUSA Non Voting Member
Dr. Mike Booth M WProfessional Bodies -
South African Chemical InstituteNon Voting Member
George Mnguni M AGovernment - Government
RepresentativeNon Voting Member
Dr. Tshenge Demana M AGovernment - Government
RepresentativeNon Voting Member
Ingrid Dimo F ANational Bargaining Council for
Chemical Industry SectorNon Voting Member
63
Annual Financial Statements
Statement of Financial Performance
for the year ended 31 March 2011
2010/2011 2009/2010
Note R’000 R’000
NON EXCHANGE REVENUE
Skills-Development Levy: income 2 297 262 268 689
Skills-Development Levy: penalties and interest 1 134 808
National Skills Fund income 14 190 3 997
Other income 2 -
EXCHANGE REVENUE
Investment income 3 17 046 18 474
Total revenue 1 315 634 291 968
EXPENSES
Employer grant and project expenses 4 (239 443) (242 921)
Administration expenses 5 (35 260) (31 200)
Finance costs 6 - (4)
National Skills Fund expenses 14 (190) (3 997)
Total expenses (274 893) (278 122)
NET SURPLUS FOR THE YEAR 1 40 741 13 846
CHIETA ◊ Annual Report 2010 – 2011
64
Annual Financial Statements
Statement of Financial Position
as at 31 March 2011
2010/2011 2009/2010
Note R’000 R’000
ASSETS
Current assets
Prepayments and advances (Exchange) 9 40 3 051
Accounts receivable 10 389 1 957
- Non-Exchange 220 1 957
- Exchange 169 -
Cash and cash equivalents 11.1 361 143 295 149
Inventories 21 27 79
361 599 300 236
Non-current assets
Property, plant and equipment 7 1 001 945
Other intangible assets 8 110 93
1 111 1 038
TOTAL ASSETS 362 710 301 274
Less: Current liabilities
Accounts payable 13 70 928 50 301
- Non-Exchange 63 124 41 679
- Exchange 7 804 8 622
National Skills Fund received in advance (Non-Exchange) 14 1 107 1 179
Finance lease obligations (Exchange) 12 - 16
Bank overdraft (Non-Exchange) 11.2 156 -
72 191 51 496
TOTAL NET ASSETS 290 519 249 778
FUNDS CONTRIBUTED BY:
Funds and reserves
Administration reserve 6 094 6,094
Discretionary reserve 284 425 243 684
TOTAL NET FUNDS 290 519 249 778
65
Annual Financial Statements
Statement of Changes in Net Assets
for the year ended 31 March 2011
Administration
reserve
Employer
grant
reserve
Discretionary
reserve
Net
accumulated
surplus
Total
R’000 R’000 R’000 R’000 R’000
Balance at 31 March 2009 6 094 - 229 838 - 235 932
Net Surplus per Statement
of Financial Performance - - - 13 846 13 846
Allocation of Net
accumulated surplus 2 409 17 193 (5 756) (13 846)
Excess reserves transferred
to Discretionary reserve (2 409) (17 193) 19 602 - -
Balance at 31 March 2010 6 094 - 243 684 - 249 778
Net Surplus per Statement
of Financial Performance - - - 40 741 40 741
Allocation of Net
accumulated surplus 1 897 31 438 7 406 (40 741) -
Excess reserves transferred
to Discretionary reserve (1 897) (31 438) 33 335 - -
Balance at 31 March 2011 6 094 - 284 425 - 290 519
CHIETA ◊ Annual Report 2010 – 2011
66
Annual Financial Statements
Cash Flow Statement
for the year ended 31 March 2011
2010/2011 2009/2010
Note R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating activities
Cash receipts from stakeholders 300 156 276 345
Levies, interest and penalties received 299 964 272 348
Other cash receipts from stakeholders 2 -
NSF Special projects 190 3 997
Cash paid to stakeholders, suppliers and employees (250 688) (231 906)
Grants and project payments (215 805) (201 278)
Compensation of employees 5.1 (17 921) (17 851)
Payments to suppliers and other (16 962) (12 777)
Cash utilised in operations 15 49 468 44 439
Investment income 3 17 046 18 474
Net cash inflow from operating activities 66 514 62 913
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment 7 ( 258) (494)
Net cash outflow from investing activities (258) (494)
CASH FLOW FROM FINANCING ACTIVITIES
Grants, transfers and funds received (262) (4 789)
Finance lease instalments - (18)
Finance costs 6 - (4)
Net cash outflow from financing activities (262) (4 811)
Net increase in cash and cash equivalents 65 994 57 608
Cash and cash equivalents at beginning of year 11.1 295 149 237 541
Cash and cash equivalents at end of year 11.1 361 143 295 149
67
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
1. ACCOUNTING POLICY
1.1 Basis of preparation
The financial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practices (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.
Standard of GRAP: Replacement Statement of GAAP:
GRAP 1: Presentation of financial statements;GRAP 2: Cash flow statement; andGRAP 3: Accounting policies, changes in accounting estimates and errors.
AC 101: Presentation of financial statements; AC 118: Cash flow statements; and AC 103: Accounting policies; changes in accounting estimates and errors.
Currently, the recognition and measurement principles in the above GRAP and GAAP statements do not differ or result in material differences in items presented and disclosed in the financial statements. The implementation of GRAP 1, 2 and 3 has resulted in the following significant changes in the presentation of the financial statements:
1.2 Terminology differences:
Standard of GRAP: Replacement Standard of GAAP:
Statement of financial performance Statement of financial position Statement of changes in net assets Net assets Surplus/deficit for the period Accumulated surplus/deficit Contributions from owners Distributions to owners Reporting date
Income statement Balance sheet Statement of changes in equity Equity Profit/loss for the period Retained earnings Share capital Dividends Balance sheet date
1.3 The cash flow statement has been prepared in accordance with the direct method.
CHIETA ◊ Annual Report 2010 – 2011
68
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
1.4 Specific information such as:
(a) receivables from non-exchange transactions, including taxes and transfers;
(b) taxes and transfers payable; and
(c) trade and other payables from non-exchange transactions must be presented separately on the statement of financial position.
1.5 The amount and nature of any restrictions on cash balances is required to be disclosed.
In addition to the above, the following GRAP statements have been approved, but are not yet effective as at 31 March 2011.
GRAP 9 - Revenue from exchange transactions
GRAP 12 - Inventories
GRAP 13 - Leases
GRAP 14 - Events after the reporting date
GRAP 17 - Property, Plant and Equipment
GRAP 19 - Provisions, Contingent Liabilities and Contingent Assets
GRAP 23 - Revenue from non-exchange transactions (Taxes and Transfers)
GRAP 24 - Presentation of Budget Information in Financial Statements
GRAP 100 - Non-current Assets held for sale and Discontinued Operations
GRAP 102 - Intangible Assets
The principal accounting policies adopted in the preparation of these financial statements are set out below and are, in all material respects, consistent with those of the previous year, except as otherwise stated.
1.6 The financial statements have been prepared on the historical cost basis, except where adjusted for present fair values as required by the relevant accounting standard.
1.7 Going Concern
The financial statements have been prepared on the going concern basis, as the CHIETA does not see any reason to significantly curtail its operations in the foreseeable future.
69
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
2.1 Currency
These financial statements are presented in South African rands as this is the currency in which the entity’s transactions are denominated. Figures have been rounded off to the nearest thousand (R’000).
3.1 Revenue recognition
Skills-Development Levy (SDL) transfers are recognised when it is probable that future economic benefit will flow to the SETA and these benefits can be measured reliably. This occurs when the Department of Higher Education and Training (DHET), either makes an allocation or payment, whichever comes first, to the SETA as required by section 8 of the Skills-Development Levies Act, 1999 (Act No. 9 of 1999).Skills-Development levies are recognised at the fair value of the consideration received.
3.2 Levy income
In terms of section 3(1) and 3(4) of the Skills-Development Levies Act, 1999 (Act No. 9 of 1999), registered member companies of the SETA pay a skills-development levy of 1% of the total payroll cost to the South African Revenue Services (SARS).
80% of skills-development levies are paid over to the SETA (net of the 20% contribution to the National Skills Fund).
Revenue is adjusted for inter-SETA transfers due to employers changing SETA’s. Such adjustments are disclosed separately as inter-SETA transfers. The amount of the inter-SETA adjustment is calculated according to the Standard Operating Procedures issued by the Department of Labour in June 2001.
When a new employer is transferred to the SETA, the levies transferred by the former SETA are recognised as revenue and allocated to the respective category to maintain its original identity.
3.3 Interest and penalties
Interest and penalties on the skills-development levy is recognised on the accrual basis.
CHIETA ◊ Annual Report 2010 – 2011
70
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
3.4 Funds allocated by the National Skills Authority for special projects
Funds transferred by the National Skills Authority are accounted for in the financial statements of the SETA as a liability until the related eligible special project expense are incurred, when the liability is extinguished and revenue recognised.
Property, plant and equipment acquired for the project are capitalised in the financial statements as the SETA controls such assets for the duration of the project. Such assets can however only be disposed of in terms of agreement and specific written instructions by the National Skills Authority.
3.5 Government grants and other donor income
Conditional government grants and other conditional donor funding received are recorded as deferred income when it becomes receivable and are then recognised as income on a systematic basis over the period necessary to match the grants with the related costs which it was intended to compensate. Unconditional grants received are recognised when the amounts have been received.
3.6 Investment income
Interest income is accrued on a time-proportion basis, taking into account the principal amount outstanding and the effective interest rate over the period to maturity.
4.1 Grants and project expenditure
A registered company may recover a maximum of 50% of its total levy payment by complying with the grant criteria in accordance with the Skills-Development Regulations issued in terms of the Skills-Development Act 1999 (Act No. 9 of 1999).
Mandatory grants
The grant payable and the related expenditure are recognised when the employer has submitted an application for a grant in the prescribed form by 30 June 2010. The grant is equivalent to 50% of the total levies paid by the employer during the corresponding financial period for the skills planning grant and implementation grant.
71
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
Discretionary grants and project expenditure
The funding for discretionary grants and projects comprise 20% of the total levies paid by the employers, levy grants that are not claimed by employers, the surplus of administration levies not utilised, investment income and other income generated by the SETA.
A SETA may out of any surplus monies determine and allocate discretionary grants to employers, education and training providers and workers of the employers who have submitted an application for a discretionary grant in the prescribed form within the agreed cut-off period.
Project expenditure comprise:
- costs that relate directly to the specific contract;
- costs that are attributable to contract activity in general and can be allocated to the project; and
- such other costs as specifically chargeable to the SETA under the terms of the contract.
Such costs are allocated using methods that are systematic and rational and are applied consistently to all costs having similar characteristics.
Project costs are recognised as expenses in the period in which they are incurred. A receivable is recognised net of a provision for irrecoverable amounts for incentive and other payments made to the extent of expenses not yet incurred in terms of the contract.
5.1 Irregular and fruitless and wasteful expenditure
Irregular expenditure means expenditure incurred in contravention of, or not in accordance with a requirement of any applicable legislation. Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable care been exercised. All irregular and fruitless and wasteful expenditure is charged against income in the period in which they are incurred.
CHIETA ◊ Annual Report 2010 – 2011
72
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
6.1 Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment. Depreciation is calculated on the straight-line method to write-off the cost of each asset over its estimated useful life.
- Computer equipment 50%
- Office furniture and fittings 10%
- Office equipment 10%
The depreciation charge is to depreciate the book value over the useful life of the asset to its assessed residual value. Depreciation is calculated and provided for on an annual basis. If the residual value of an asset is at least equal to its carrying amount, depreciation will cease.
The expected useful life of assets within each class differs, since all the assets are expected to be in use over the life of the SETA. The depreciation of assets commences on the date that the asset is available for use, even if it is not yet in use.
The estimated useful life of the assets are limited to the remaining period of the licence issued to the CHIETA by the Minister of Labour. For the current year the remaining period is five years (2010: one year). Useful life of assets are re-assessed at the end of each financial year.
The following factors were considered to determine the useful life of the asset:
• Expected usage of the asset;
• Expected physical wear and tear of the asset;
• Technical obsolescence; and
• Legal or other limits on the use of the asset.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount (i.e. impairment losses are recognised).
73
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
Gains and losses on disposal of property, plant and equipment are determined by reference to their carrying amount and are taken into account in determining operating profit.
Intangible Assets
Intangible assets held for use are stated in the balance sheet at amortised cost, being the initial cost price less any amortisation and impairment.
Amortisation is charged so as to write off the cost of intangible assets over their estimated useful lives, using the straight-line method as following:
- Computer software 50%
The useful lives of intangible assets are reassessed at the end of each financial year.
7.1 Finance and operating lease agreements
Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement based on actual straight lined and accrued payments. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination take place.
8.1 Retirement benefit costs
The SETA provides for retirement benefits for all its permanent employees through a defined contribution scheme that is subject to the Pension Funds Act, 1956 as amended. In terms of the Pension Funds Act, the fund is not required to be actuarially valued. Contributions are at a rate of 14.88% of pensionable emoluments.
The SETA’s contribution to the defined contribution plans is charged to the income statement in the year to which they relate and no future liability exists for the CHIETA.
CHIETA ◊ Annual Report 2010 – 2011
74
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
9.1 Provisions
Provisions are recognised when the SETA has a present legal or constructive obligation as a result of past events, and it is probable that this will result in an outflow of economic benefits that can be estimated reliably.
9.2 Provision for employee entitlements
The cost of other employee benefits is recognised during the period in which the employee renders the related service. Employee entitlements are recognised when they accrue to employees. A provision is made for the estimated liability as a result of services rendered by employees up to the balance sheet date. Provisions included in the balance sheet are provisions for leave (based on the current salary rates), bonuses and termination benefits.
9.3 Provision for grants
A provision is recognised for grant payments once the specific criteria set out in the regulations to the Skills-Development Act, 97 of 1998 have been complied with by member companies and it is probable that the SETA will approve the payment. The measurement of the obligation involves an estimate based on the established pattern of past practice of approval for each type of grant.
No provision is made for projects approved at year-end, unless the service in terms of the contract has been delivered or the contract is of an onerous nature. Where a project has been approved, but has not been accrued for or provided for, it is disclosed as commitments in the notes to the financial statements.
10.1 Financial instruments
Recognition
Financial assets and financial liabilities are recognised on the SETA’s balance sheet when the SETA becomes a party to the contractual provisions of the instrument.
Measurement
Financial instruments are initially measured at cost, which includes transaction costs. Subsequent to initial recognition these instruments are measured as set out below.
75
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
10.2 Financial assets
The SETA’s principle financial assets are accounts and other receivable and cash and cash equivalents.
Investments and loans
The following categories of investments are measured at subsequent reporting dates at amortised cost by using the effective interest rate method if they have a fixed maturity, or at cost if there is no fixed maturity:
- Loans and receivables originated by the group; - Held-to-maturity investments; and - An investment that does not have a quoted market price in an active market
and whose fair value cannot be measured reliably.
Cost and amortised cost are inclusive of any impairment loss recognised to reflect irrecoverable amounts. The financial assets are subject to review for impairment at each balance sheet date.
Investments other than those listed above are classified as available-for-sale investments or investments held-for-trading and are measured at subsequent reporting dates at fair value without any deduction for transaction costs that may be incurred on sale or other disposal.
Accounts and other receivables
Accounts and other receivables are stated at amotised cost as reduced by appropriate allowances for estimated irrecoverable amounts.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value.
10.3 Financial liabilities
The SETA’s principal financial liabilities are accounts and other payables.
All financial liabilities are measured at amortised cost, comprising original debts less principle payments and amortisations, except for financial liabilities held-for trading and derivative liabilities, which are subsequently measured at fair value.
CHIETA ◊ Annual Report 2010 – 2011
76
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
Gains and losses arising from a change in the fair value of financial instruments, other than available-for-sale financial assets are included in net profit or loss in the period in which it arises. Gains and losses arising from a change in the fair value of available-for-sale financial assets are recognised in equity, until the investment is disposed of or is determined to be impaired, at which time the net profit or loss is included in the net profit or loss for the period.
A financial asset or a portion thereof is derecognised when the SETA realises the contractual rights to the benefits specified in the contract, the rights expire, the SETA surrenders those rights or otherwise loses control of the contractual rights that comprise the financial asset. On derecognition, the difference between the carrying amount of the financial asset and the sum of the proceeds receivable and any prior adjustment to reflect the fair value of the asset that had been reported in equity is included in net profit or loss for the period. A financial liability or a part thereof is derecognised when the obligation specified in the contract is discharged, cancelled, or expires. On derecognition, the difference between the carrying amount of the financial liability, including related unamortised costs, and the amount paid for it is included in net profit or loss for the period.
The fair values at which financial instruments are carried at the balance sheet date have been determined using available market values. Where market values are not available, fair values have been calculated by discounting expected future cash flows at prevailing interest rates. The fair values have been estimated using available market information and appropriate valuation methodologies, but are not necessarily indicative of the amounts that the SETA could realise in the normal course of business. The carrying amounts of financial assets and financial liabilities with a maturity of less than one year are assumed to approximate their fair value due to the short-term trading cycle of these items.
Financial assets and financial liabilities are offset if there is any intention to realise the asset and settle the liability simultaneously and a legally enforceable right to offset exists.
77
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
11.1 Reserves
Equity is sub-classified in the balance sheet between the following funds and reserves:
- Administration reserve
- Employer grant reserve
- Discretionary reserve
This sub-classification is made based on the restrictions placed on the distribution of monies received in accordance with the regulations issued in terms of the Skills-Development Act, 1998 (Act No. 97 of 1998).
Member employer company levy payments are set aside in terms of the Skills-Development Act and the regulations issued in terms of the Act, for the purpose of:
2010/2011 2009/2010
% %
Administration costs of the SETA 10 10
Employer Grant Fund Levy 50 50
Mandatory Workplace Skills Planning Grant 50 50
Discretionary grants and projects 20 20
80 80
In addition, contributions received from public service employers in the national or provincial spheres of government may be used to pay for its administration costs.
Interest and penalties received from SARS as well as interest received on investments are utilised for discretionary grants and projects. Other income received is utilised in accordance with the original source of the income.
The net surplus/deficit is allocated to the administration reserve, the mandatory grant reserve and the discretionary fund reserve based on the above table.
Surplus funds are moved to the discretionary fund reserve from the administration reserve based on unspent funds at year-end and from the mandatory grant based on unclaimed grants after the prescribed timeframes have elapsed.
CHIETA ◊ Annual Report 2010 – 2011
78
Accounting Policiesto the Annual Financial Statements for the year ended 31 March 2011
11.2 Related parties
CHIETA operates in an economic environment currently dominated by entities directly or indirectly owned by the South African government. All national departments of government and state-controlled entities are regarded as related parties in accordance with Circular 4 of 2005: Guidance on the term “state-controlled entities” in context of IAS 24 (AC 126) – Related Parties, issued by the South African Institute of Chartered Accountants. Other related-party transactions are also disclosed in terms of the requirements of the accounting standard.
11.3 Inventories
Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects is assigned using specific identification of the individual costs.
The cost of inventories is assigned using the first in first out (FIFO)/weighted average formula. The same cost formula is used for all inventories having a similar nature and use to the entity.
When inventories are sold, the carrying amount of those inventories are recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of inventories are recognised as an expense in the period the write-down or loss occurs.
11.4 Commitments and contingencies
Commitments comprise those future expenses that the CHIETA has committed itself to contractually, but for which a present obligation for the payment thereof does not exist at the reporting date. Accordingly, these commitments are not recognised as liabilities but are disclosed in the notes to the annual financial statements. Please refer to note 17.
79
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
1a.
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37
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--
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185
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190
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190
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1 -
-
-
6
9 40
4 -
(
28 6
63)
40
741
CHIETA ◊ Annual Report 2010 – 2011
80
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
1b.
AL
LO
CA
TIO
N O
F N
ET
SU
RP
LU
S F
OR
TH
E Y
EA
R T
O R
ES
ER
VE
S F
OR
TH
E F
INA
NC
IAL
YE
AR
EN
DE
D 3
1 M
AR
CH
201
0
Man
dat
ory
res
erve
Dis
cret
ion
ary
rese
rve
Tota
l per
in
com
e st
atem
ent
Ad
min
istr
atio
n
rese
rve
Man
dat
ory
ski
lls
pla
nn
ing
an
d
imp
lem
enta
tio
n
gra
nt
Tota
l
Dis
cret
ion
ary
gra
nts
N
SF
sp
ecia
l p
roje
cts
CH
IETA
p
roje
cts
Tota
l d
iscr
etio
nar
y
To
tal r
even
ue
291
968
3
1 20
4 1
50 6
57
150
657
1
06 1
10
3 9
97
-
110
107
Ski
lls-d
evel
opm
ent l
evy:
inco
me
- -
- -
-
--
-
Adm
in le
vy in
com
e (1
0%)
33
613
33
613
- -
-
--
-
Gra
nt le
vy in
com
e (7
0%)
235
076
-
167
850
1
67 8
50
67
226
--
67
226
Ski
lls-d
evel
opm
ent l
evy:
pen
altie
s an
d in
tere
st 8
08
--
-
808
-
- 8
08
Nat
iona
l Ski
lls F
und
inco
me
3 9
97
--
-
- 3
997
-
3 9
97
Inve
stm
ent i
ncom
e 1
8 47
4 -
- -
1
8 47
4 -
- 1
8 47
4
Oth
er in
com
e -
-
- -
-
--
-
Tra
nsfe
r to
Dis
cret
iona
ry R
eser
ve-
(2
409)
(17
193
) (
17 1
93)
19
602
--
19
602
To
tal e
xpen
ses
278
122
3
1 20
4
150
657
1
50 6
57
67
743
3 9
97
24
521
96
261
Adm
inis
trat
ion
expe
nses
31
200
31
200
- -
-
--
-
Fin
ance
cos
ts 4
4
-
-
--
- -
Nat
iona
l Ski
lls F
und
expe
nses
3 9
97
--
-
- 3
997
-
3 9
97
Em
ploy
er g
rant
s an
d pr
ojec
t ex
pens
es 2
42 9
21
- 1
50 6
57
150
657
6
7 74
3 -
24
521
92
264
Net
su
rplu
s p
er s
tate
men
t o
f fi
nan
cial
per
form
ance
allo
cate
d 1
3 84
6 -
-
-
3
8 36
7 -
(
24 5
21)
13
846
81
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
2010/2011 2009/2010
Note R’000 R’000
2. SKILLS-DEVELOPMENT LEVY INCOME
The total levy income per the Income Statement is as follows:
Levy income: Administration 37 157 3 613
Skills-development levies transferred from Department of Higher education and Training 37 142 33 328
Inter-seta transfers in 15 295
Inter-seta transfers out - (10)
Levy income: Employer Grants 185 762 167 850
Skills-development levies transferred from Department of Higher education and Training 185 685 166 401
Inter-seta transfers in 77 1 476
Inter-seta transfers out - (27)
Levy income: Discretionary Grants 74 343 67 226
Skills-development levies transferred from Department of Higher education and Training 74 312 66 641
Inter-seta transfers in 31 590
Inter-seta transfers out - (5)
297 262 268 689
3. INVESTMENT INCOME
Interest income 17 046 18 474
Bank deposits 17 046 18 474
17 046 18 474
4. EMPLOYER GRANT AND PROJECT EXPENSES
Mandatory grants 154 324 150 657
Disbursed 124 931 125 657
Movement in provisions and accruals 29 393 25 000
Discretionary grants 56 456 67 743
Disbursed 60 450 67 524
Movement in provisions and accruals (3 994) 219
Project expenditure 17.1 28 663 24 521
Disbursed 32 628 23 041
Movement in provisions and accruals (3 965) 1 480
239 443 242 921
CHIETA ◊ Annual Report 2010 – 2011
82
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
2010/2011 2009/2010
Note R’000 R’000
4.1 Project expenditure consist of:
Direct project costs 28 663 23 251
Direct administration expenses - 1 270
28 663 24 521
5. ADMINISTRATION EXPENSES
Depreciation 123 544
Amortisation of intangibles 63 98
Operating lease rentals (minimum lease payments) 4 422 2 050
Buildings 4 422 2 050
Maintenance, repairs and running costs 249 386
Property and buildings 249 386
Advertising, marketing and promotions, communication 180 233
Consultancy and service provider fees 1 969 2 088
Legal fees 446 328
Cost of employment 5.1 18 650 17 851
Travel and subsistence 1 926 1 128
Training and development 248 275
Remuneration to members of the accounting authority - -
Remuneration to members of the audit committee 161 86
Internal auditor’s remuneration 1 095 511
External auditor’s remuneration 1 733 1 175
Audit fees 1 733 1 175
Bad debts written off 55 -
Internet service (ISP) 675 754
Telephone and fax 853 877
Printing and stationary 539 699
Insurance costs 332 342
Workshop and meetings 219 993
Other 1 322 782
35 260 31 200
Members of the Accounting Authority do not receive remuneration for their services. Refer to the report of the accounting authority for disclosure concerning the emoluments of the Chief Executive Officer; the Chief Financial Officer and senior managers.
83
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
2010/2011 2009/2010
Note R’000 R’000
5.1 Cost of employment
Salaries and wages 15 770 14 925
Basic salaries 12 860 12 453
Performance awards 1 237 1 147
Temporary staff 840 1 105
Leave provision 833 220
Social contributions 2 880 2 926
Medical aid contributions 409 487
Provident fund contributions: defined contribution plans 2 298 2 274
UIF 173 165
18 650 17 851
Allocation of cost of employment
Administration expenses 5 18 650 17 851
18 650 17 851
Average number of employees 35 33
6. FINANCE COSTS
Interest expense:
Obligations under finance leases - 4
Total interest expense - 4
CHIETA ◊ Annual Report 2010 – 2011
84
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
7. PROPERTY, PLANT AND EQUIPMENT
Cost Accumulated depreciation/
impairment
Closing carrying amount
Year ended 31 March 2011 R’000 R’000 R’000
Computer equipment 1 999 (1 595) 404 Office furniture and fittings 1 869 (1 700) 169 Office equipment 1 407 (979) 428 Balance at end of period 5 275 (4 274) 1 001
Made up as follows:
- Owned assets 5 071 (4 070) 1 001 - Leased assets 204 (204) -
Cost Accumulated depreciation/
impairment
Closing carrying amount
Year ended 31 March 2010 R’000 R’000 R’000
Computer equipment 1 855 (1 522) 333 Office furniture and fittings 1 843 (1 689) 154 Office equipment 1 398 (940) 458 Balance at end of period 5 096 (4 151) 945
Made up as follows:
- Owned assets 4 893 (3 957) 936 - Leased assets 204 (195) 9
Movement summary 2011Carrying amount
2010
Adjustments Additions Depreciation/ Amortisation
charge
Carrying amount
2011
R’000 R’000 R’000 R’000 R’000
Computer equipment 333 - 144 (73) 404 Office furniture and fittings 154 - 26 (11) 169
Office equipment 458 - 9 (39) 428 Balance at end of period 945 - 179 (84) 1 001
Movement summary 2010Carrying amount
2009
Adjustments Additions Depreciation/ Amortisation
charge
Carrying amount
2010
R’000 R’000 R’000 R’000 R’000
Computer equipment 545 (2) 71 (281) 333 Office furniture and fittings 222 - 73 (141) 154
Office equipment 229 - 350 (121) 458 Balance at end of period 996 (2) 494 (543) 945
85
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
2010/2011 2009/2010
R’000 R’000
8. INTANGIBLE ASSETS - COMPUTER SOFTWARE
Opening carry value 93 191
Cost / valuation 1 304 1 304
Accumulated amortisation (1 211) (1 113)
Movements during the year 17 (98)
Additions 80 -
Amortisation (63) (98)
Closing carry value 110 93
Cost / valuation 1 384 1 304
Accumulated amortisation (1 274) (1 211)
9. PREPAYMENTS AND ADVANCES
Discretionary grant prepayments - 2 807
Staff Advances 40 66
Prepayments - 178
Closing balance 40 3 051
10. ACCOUNTS RECEIVABLE
Inter-seta debtors (Non-Exchange) 79 774
Projects debtors (Exchange) 169 -
Deposits (Non-Exchange) 83 87
Trade receivables (Non-Exchange) 46 20
Employer receivable (Non-Exchange) 12 1 020
Employee receivable (Non-Exchange) - 56
389 1 957
10.1 Bad debts written off
Employee receivable 55 56
Amounts written-off (55) -
Employee receivable - 56
The bad debt written-off relates to the former CEO’s cellphone expense that is no longer recoverable.
CHIETA ◊ Annual Report 2010 – 2011
86
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
2010/2011 2009/2010
R’000 R’000
11.1 CASH AND CASH EQUIVALENTS
Cash at bank and in hand 361 143 295 149
Cash at bank 361 141 295 148
Cash on hand 2 1
Cash and cash equivalents at end of year 361 143 295 149
As required in Treasury Regulation 31.2, National Treasury approved the banks where the CHIETA bank accounts are held. The weighted average interest rate on short term bank deposits was 5.6% (2010: 6.5%).
Cash includes cash on hand and cash with banks. Cash equivalents are short term, highly liquid investments that are held with registered banking institutions with maturities of three months or less and that are subject to an insignificant risk of change in value.
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks, and investments in money market instruments.
2010/2011 2009/2010
R’000 R’000
11.2 BANK OVERDRAFT
Bank Overdraft 156 -
156 -
The bank overdarft was as a result of debit order payments that were processed on the CHIETA current account on 31 March 2011. The CHIETA does not maintain an overdaft facility with the bank and the overdraft was cleared on 1 April 2011.
87
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
2010/2011 2009/2010
Note R’000 R’000
12. FINANCE LEASE OBLIGATIONS
Reconciliation between the total of the minimum lease payments and the present value:
Up to 1 Year
Future minimum lease payments - 17
Finance cost - (1)
Present value - 16
1 to 5 years
Future minimum lease payments - -
Finance cost - -
Present value - -
More than 5 years
Future minimum lease payments - -
Finance cost - -
Present value - -
- 16
Analysed for financial reporting purposes:
Non-current finance lease liability (recoverable after 12 months) - -
Current finance lease liability (recoverable within 12 months) - 16
Finance lease liability - 16
Finance lease Repayments for the year - -
13. ACCOUNTS PAYABLE
63 124 41 679
Skills-development grants payable - mandatory (Non-Exchange) 54 865 25 472
Skills-development grants payable - discretionary (Non-Exchange) 7 918 11 912
Project creditors (Non-Exchange) 177 4 142
Inter-seta payables (Non-Exchange) 20 164 153
Sundry payables 7 804 8 622
Other Accruals (Exchange) 1 417 5 232
Leave and Bonus pay accrual (Exchange) 13.1 2 441 1 712
Service provider fees outstanding (Exchange) 3 929 1 096
Trade payables (Exchange) 17 582
70 928 50 301
CHIETA ◊ Annual Report 2010 – 2011
88
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
13.1 Leave and Bonus pay accrual
Employee leave
provision
Employee bonus
provision
2010/2011 2009/2010
R’000 R’000
Open carrying amount 220 1 492 1 712 1 739
Amounts utilised (220) (1 492) (1 712) (1 739)
Change in estimate 833 1 608 2 441 1 712
Closing carrying amount 833 1 608 2 441 1 712
Non-current - - -
Current 833 1 608 2 441
Total 833 1 608 2 441
Employee entitlements relate to leave credits available to employees of the CHIETA. Leave balances of employees are multiplied by the daily rate of each employees salary and quantified to the amount of leave credits available.
14. NATIONAL SKILLS FUND: SPECIAL PROJECTS
2010/2011 2009/2010
R’000 R’000
Opening balance 1 179 1 971
Received during the year - 2 924
Interest received 118 281
Utilised and recognised as revenue- conditions met: (190) (3 997)
OGCM Artisan skills Project (190) (3 997)
Closing balance 1 107 1 179
During the current year the opening balance available of R1 179 (R’000) together with interest received amounting to R118 (R’000) was recognised as a liability until the conditions attached were met. During the year, R190 (R’000) eligible project special expenses were incurred and a corresponding amount was recognised as revenue. As at year end R1 107 (R’000) has been recognised as a liability to the National SKills Fund
89
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
2010/2011 2009/2010
R’000 R’000
15. RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO NET SURPLUS
Net surplus as per statement of financial performance 40 741 13 846
Adjusted for non-cash items:
Depreciation 123 544
Amortisation 63 98
Increase/(decrease) in provisions - -
NSF Special project income recognised 190 3 997
Adjusted for items separately disclosed
Investment income (17 046) (18 474)
Finance lease instalments - 18
Finance costs - 4
Adjusted for working capital changes:
Increase in receivables 1 619 2 781
Increase in payables 20 767 26 866
Decrease in prepayments and advances 3 011 14 759
Cash generated from operations 49 468 44 439
16. CONTINGENCIES
In terms of the PFMA, all surplus funds as at year-end may be forfeited to National Treasury. As at year-end, this amount could not be quantified as National Treasury has not defined surplus funds. Formal approval has been obtained from National Treasury to retain surplus funds.
CHIETA ◊ Annual Report 2010 – 2011
90
Notes to the Annual Financial Statementsfor the year ended 31 March 201117
.C
OM
MIT
ME
NT
S
17.1
Dis
cret
ion
ary
rese
rve
Of t
he b
alan
ce o
f R28
4 42
5 (R
’000
) av
aila
ble
in th
e D
iscr
etio
nary
res
erve
at t
he e
nd o
f Mar
ch 2
011,
R15
6 84
7 (R
’000
) ha
s be
en a
ppro
ved
and
allo
cate
d fo
r di
scre
tiona
ry
gran
ts a
nd s
ubst
antia
l por
tions
of
cont
ract
ual o
blig
atio
ns h
ave
been
met
. An
addi
tiona
l am
ount
of
R14
0 m
illio
n is
in t
he p
roce
ss o
f al
loca
tion
by t
he d
iscr
etio
nary
gra
nt
revi
ew c
omm
ittee
and
a fu
rthe
r am
ount
of R
36 m
illio
n ha
s be
en a
lloca
ted
to a
ppro
ved
proj
ects
and
ski
lls p
riorit
ies.
Op
enin
g
bal
ance
20
09/2
010
Ap
pro
ved
by
Acc
ou
nti
ng
A
uth
ori
ty
Uti
lised
Op
enin
g
bal
ance
20
10/2
011
Ap
pro
ved
by
Acc
ou
nti
ng
A
uth
ori
ty
No
n
Co
ntr
acte
d
Ad
just
men
ts
Uti
lised
Tota
l 20
10/
2011
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
Qua
lity
Ass
uran
ce a
nd p
rovi
der
supp
ort
1 2
58
2 4
05
2 5
69
1 0
94
4 2
00
(3
000)
2 0
99
195
Cha
nnel
4 -
Inve
stor
s in
Peo
ple
Pro
ject
1
74
--
174
-
(17
4)-
-
Che
mic
al in
dust
ries
Sta
ndar
ds
Gen
erat
ing
Bod
y 1
576
2
300
9
17
2 9
59
2,1
67
(4
800)
228
9
7
Dev
elop
men
t / R
evis
ion
of le
arni
ng
mat
eria
ls /
asse
ssm
ent g
uide
s 7
54
- 1
20
634
-
- 1
28
506
ET
DQ
A a
ccre
dita
tion
and
docu
men
t m
anag
emen
t 1
001
-
- 1
001
-
(1
001)
- -
Reg
iste
r as
sess
ors
and
mod
erat
ors
800
6
40
- 1
440
-
(1
440)
- -
Nat
iona
l Lea
rner
ship
Dev
elop
men
t P
roje
ct
93
315
2
3 3
85
1 4
00
(1
000)
626
1
59
Rev
ised
acc
redi
tatio
n as
sess
men
t gu
idel
ines
3
50
--
350
-
(35
0)-
-
Cha
mbe
r an
d st
akeh
olde
r su
ppor
t 9
16
1 4
96
1 1
20
1 2
92
2 1
17
(2
000)
1 3
11
98
Reg
iona
l Out
reac
h 1
671
4
474
3
910
2
235
6
212
(
3 50
0) 4
864
8
3
Aud
it gu
idel
ines
and
trai
ning
1
08
--
108
-
(10
8)-
-
App
rent
ices
hip
/ Art
isan
de
velo
pmen
t 9
27
5 4
02
6 0
99
230
4
200
-
4 3
18
112
Offl
ine
data
cap
ture
and
MIS
Pro
ject
4
75
--
475
-
(47
5)-
-
Org
anis
atio
nal w
ork
stud
y an
d da
ta
man
agem
ent
264
1
445
1
062
6
47
1 4
00
- 1
158
8
89
91
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
Gov
erna
nce
and
stak
ehol
der
capa
city
bui
ldin
g (
97)
475
2
54
124
3
00
3
18
106
Res
earc
h an
d ev
alua
tion
644
-
81
563
-
93 6
56
-
Info
rmat
ion,
res
ourc
e an
d Q
MS
(
64)
--
(64
)-
64
- -
ISO
E S
trat
egy
and
impl
emen
tatio
n 2
805
2
205
1
559
3
451
-
(3
000)
318
1
33
New
Ven
ture
cre
atio
n 6
50
683
1
000
3
33
--
- 3
33
SD
F C
apac
ity b
uild
ing
41
--
41
- (
41)
- -
AB
ET
SM
ME
8
60
--
860
-
(86
0)-
-
Em
ploy
ee W
elln
ess
Pro
gram
1
02
--
102
-
(10
2)-
-
Rem
uner
atio
n be
nchm
arki
ng
100
1
05
- 2
05
250
(
205)
- 2
50
Bur
sary
Sch
eme
1 1
92
2 0
00
1 1
38
2 0
54
9 0
75
(3
083)
4 5
09
3 5
37
Pro
ject
s O
ffice
/ O
GC
M
322
1
096
1
418
-
-
1 5
37
1 5
37
-
FE
T S
cien
ce P
roje
ct
100
-
- 1
00
- (
100)
- -
HE
T /
FE
T L
earn
ersh
ips
166
-
- 1
66
- (
166)
- -
Cor
pora
te c
omm
unic
atio
n/ P
ublic
R
elat
ions
Str
ateg
y/A
dvoc
acy
(13
) 8
38
1 0
40
(21
5) 1
920
-
1 1
56
549
Ski
lls P
rogr
amm
e / L
earn
er
Cer
tifica
tion
2
116
-
- 2
116
-
(2
116)
- -
Crit
ical
Ski
lls L
earn
ersh
ip
200
-
- 2
00
- 2
00
- 4
00
Med
ical
Sal
es R
eps
100
-
-
100
-
(10
0)-
-
Occ
upat
iona
l hea
lth a
nd s
afet
y 2
50
--
250
-
(25
0)-
-
Gra
de 1
2 M
aths
and
Sci
ence
-
--
- 2
50
--
250
SA
PIA
-
-
-
-
4
818
-
4
818
-
SM
ME
Str
ateg
y / V
ouch
er P
roje
ct
2 0
95
2 1
00
2 2
11
1 9
84
1 3
00
(1
984)
619
6
81
Tota
l 2
1 93
6 2
7 97
8 2
4 52
1 2
5 39
3 3
9 60
9 (
27 9
61)
28
663
8
378
CHIETA ◊ Annual Report 2010 – 2011
92
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
2010/2011 2009/2010
R’000 R’000
17.2 Operating Leases
Minimum lease payments under operating leases recognised as an expense in the year 4 422 2 050
At the reporting date the entity has outstanding commitments under operating leases which fall due as follows:
Not later than one year - 3 141
Later than one year and not later than five years - 12 763
Later than five years - -
- 15 904
Operating Leases
Operating lease payments represent rentals payable by the entity for certain of its properties situated in Durban, Cape Town and Johannesburg. Leases are negotiated for an average of 5 years and rentals escalate by an average of 8% annually.
17.3 Finance Leases
2010/2011 2009/2010
R’000 R’000
Minimum
Lease
Payment
Future Finance
Charges
Present value of
minimum lease
payments
Minimum
Lease
Payment
Future Finance
Charges
Present value of
minimum lease
payments
Amounts payable under finance leases
Within one year - - - 17 (1) 16
In the second to fifth year inclusive - - - - - -
After five years - - - - - -
- - - 17 (1) 16
Less: Amount due for settlement within 12 months - 16
- -
Obligations under finance leases are secured by the lessor’s title to the leased asset.
93
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
18. MATERIAL LOSSES THROUGH CRIMINAL CONDUCT, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE
Irregular, Fruitless and Wasteful Expenditure:
A material loss through irregular, fruitless and wasteful expenditure of R1 828 763.76 was incurred during the year ended 31 March 2011. The former CHIETA CEO entered into a lease agreeement in the current financial year for office premises with an effective commencement date of 1 April 2010. The accounting authority has investigated the validity and financial viability of the lease agreement and whether it was in the interest of the CHIETA. As a result, the accounting authority came to the view that the agreement is indeed not financially viable and not in the interest of CHIETA Consequently, the accounting authority resolved that the former CHIETA CEO withdraws from the lease entered into with the Landlord. As at 31 March 2011, a total amount of R1 746 497.44 relating to monthly rental for the period 1 April 2010 to 30 November 2010 has was expended on the above premises. A further amount of R82 266.32 was also incurred on development, design and improvement expenditure on the above property during the period.
Overide of the CHIETA policy also resulted in expenditure in relation to the former CHIETA CEO’s cellphone and travel expenditure as follows:
Cellphone allowance in excess of policy of R55 111.35 and travel expenses not in compliance with policy of R2 622.
An amount of R584 339 is deemed to be incurred as irregular expenditure as no supporting documentation confirming proper supply chain procedures on the appointment of the CHIETA legal advisor by the former CEO could be presented for audit.
Reconciliation of irregular, fruitless and wasteful expenditure:
2010/2011R’000
2009/2010R’000
Opening balance - -
Add: Irregular, fruitless and wasteful expenditure - current year
2 413 -
Closing Balance 2 413 -
19. FINANCIAL INSTRUMENTS
In the course of the CHIETA operations it is exposed to interest rate, credit, liquidity and market risk. The CHIETA has developed a comprehensive risk strategy in terms of TR 28.1 in order to monitor and control these risks. The risk management process relating to each of these risks is discussed under the headings overleaf.
CHIETA ◊ Annual Report 2010 – 2011
94
Notes to the Annual Financial Statementsfor the year ended 31 March 201119
.F
INA
NC
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INS
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TS
co
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17
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-
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-
361
143
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- 3
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344
097
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1
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106
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-
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301
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50
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276
675
-
1
8 47
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-
5
2 25
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95
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
Credit risk
Financial assets, which potentially subject the CHIETA to the risk of non performance by counter parties and thereby subject to credit concentrations of credit risk, consist mainly of cash and cash equivalents, investments and accounts receivable. The CHIETA management limits its treasury counter-party exposure by only dealing with well-established financial institutions approved by National Treasury through the approval of their investment policy in terms of Treasury Regulations.
Credit risk with respect to levy paying employers is limited due to the nature of the income received. The CHIETA does not have any material exposure to any individual or counter-party. The CHIETAs concentration of credit risk is limited to the industry in which the CHIETA operates. No events occurred in the industry during the financial year that may have an impact on the accounts receivable that has not been adequately provided for. Accounts receivable are presented net of allowance for doubtful debt.
Liquidity risk
The CHIETA manages liquidity risk through proper management of working capital, capital expenditure and actual vs. forecasted cash flows.
Market risk
The CHIETA is exposed to fluctuations in the employment market for example sudden increases in unemployment and changes in the wage rates. No significant events occurred during the year that the CHIETA are aware of.
Fair values
The CHIETA’s financial instruments consist mainly of cash and cash equivalents, account and other receivables, and account and other payables. No financial instruments were carried at an amount in excess of its fair value. The following methods and assumptions are used to determine the fair value of each class of financial instrument:
Cash and cash equivalents
The carrying amount of cash and cash equivalents approximates fair value due to the relatively short-term maturity of these financial assets.
Accounts receivable
The carrying amount of accounts receivable, net of allowance for bad debt, approximates fair value due to the relatively short-term maturity of these financial assets.
Accounts payable
The carrying amount of account and other payables approximates fair value due to the relatively short-term maturity of these financial liabilities.
CHIETA ◊ Annual Report 2010 – 2011
96
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
20. RELATED PARTY TRANSACTIONS
Transactions with other SETAs
Inter-seta transactions and balances arise due to the movement of employers from one SETA to another. The following transactions occurred during the year with other SETAs.
The balances at year-end included in receivables and payables are:
2010/2011 2009/2010
R’000 R’000
Transfers in/(out)
during the year
Amount receivable/
(payable)
Transfers in/(out)
during the year
Amount receivable/
(payable)
Receivables 123 79 2 361 774
W&R SETA - 29 - 100
CTFL - - 71 -
HEALTH AND WELFARE 123 - 2 290 -
MERSETA - - - 43
SERVICES - 50 - 612
TETA - - - 19
Payables - (164) (42) (153)
W&R SETA - (3) (3) (35)
MQA - (69) - -
SERVICES - - - (98)
FOODBEV - - (30) -
MERSETA - (92) (9) (19)
OTHER - - - (1)
Total 123 (85) 2 319 621
97
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
Tra
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with
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an th
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sim
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.
CHIETA ◊ Annual Report 2010 – 2011
98
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
2010/2011 2009/2010
R’000 R’000
21. INVENTORIES
Inventories consist of :
Consumable Stores
Stationary 5 4
Groceries and refreshments - 2
Marketing / promotional material 22 72
27 78
22. COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 31 MARCH 2011
Approved Budget
Actual Favourable (Unfavourable)
Variance
Approved Budget
Actual Favourable (Unfavourable)
Variance
2010/2011 2010/2011 2010/2011 2009/2010 2009/2010 2009/2010
R’000 R’000 R’000 R’000 R’000 R’000
NON EXCHANGE REVENUE
Skills-Development Levy: income 319 706 297 262 (22 444) 257 697 268 689 10 992
Skills-Development Levy: penalties and interest 856 1 134 278 461 808 347
National Skills Fund income - 190 190 18 769 3 997 (14 772)
Other income - 2 2 - - -
EXCHANGE REVENUE
Investment income 17 550 17 046 (504) 20 709 18 474 (2 235)
Total revenue 338 112 315 634 (22 478) 297 636 291 968 (5 668)
Employer grant and project expenses 305 195 239 443 (65 752 ) (245 734) (242 921) 2 813
Administration expenses 32 917 35 260 2 343 (33 133) (31 200) 1 933
Finance costs - - - - (4) (4)
National Skills Fund expenses - 190 190 (18 769) (3 997) 14 772
Total expenses 338 112 274 893 (63 219) (297 636) (278 122) 19 514
NET SURPLUS FOR THE YEAR - 40 741 40 741 - 13 846 13 846
99
Notes to the Annual Financial Statementsfor the year ended 31 March 2011
The unfavourable variance in skills-development levy income is due to a lower than anticipated return of levies from member companies. The CHIETA budgeted for an 18% increase in levy income for the financial year, and received a 11% increment. Based on an analyses of levy income it appears that the employee base in the sector continued to expand during the period in excess of the inflationary target. National skills fund income was lower than budget due to the finalisation and closure of the OGCM artisan training project at the during the year. The unfavourable variance on the Employer grant project expenses was due to the lower than projected discretionary grant disbursement for the financial year.
23. CONTINGENCIES
Contingent Liabilities:
The CHIETA is currently defending a claim in the capital sum of R7 771 924 made against the CHIETA by Cedar Park Properties (Pty) Ltd pertaining to the alleged repudiation of the lease agreement entered into by the former CHIETA CEO. The pending legal matter is currently in the pleading stage and management is uncertain of the outcome of the litigation. As reported in the prior year report of the Auditor - General (SA) and contrary to the requirements of section 66(3)(b) of the PFMA, the former CEO of CHIETA signed a guarantee with the bank without the approval of the accounting authority. An amount of R561 492 relating to the bank guarantee signed by the former CEO is subject to legal discusiions with the landlord. The total extent of penalties or recovery of expenses that the CHIETA will be subjected to could not be quantified, pending finalisation of legal correspondence and discussiion with the landlord.
Contingent Asset:
The CHIETA have instituted a counterclaim in the capital sum of R1 706 936 against Cedar Park Properties relating to the recovery of lease rentals that were transferred to Cedar Park properties via a debit order agreement entered into by the former CHIETA CEO.The pending legal matter is currently in the pleading stage and management is uncertain of the outcome of the litigation.
CHIETA ◊ Annual Report 2010 – 2011
100
Materiality and Significance Frameworkfor the 2010/2011 financial year
Content Page
Objective 101
Legal framework 101
Factors considered in developing the framework 102
Materiality 104
Significant 105
Reporting of the framework 106
Annexure A 106
101
Materiality and Significance Frameworkfor the 2010/2011 financial year
1. Objective
The policy is intended to determine material and significant events that warrant disclosure by the Accounting Authority to:
• The Executive Authority/legislature;• The National Treasury; and• The office of the Auditor-General.
Therefore events of a similar nature as considered material and significant, but does not constitute material and significant will be managed “in-house” by the Accounting Authority in terms of formal enquiries and disciplinary processes defined by the human resources policies and procedures.
2. Legal framework
In terms of Treasury Regulations, section 28.1.5, issued in terms of the Public Finance Management Act No 1 of 1999, the Accounting Authority must develop and agree to a framework of acceptable levels of materiality and significance with the relevant executive authority in consultation with the external auditors.
The specific sections of the Public Finance Management Act that is relevant to:
Materiality includes:
• Section 50(1)(c) – “The Accounting Authority for a public entity must on request, disclose to the Executive Authority responsible for that public entity or the legislature to which the public entity is accountable, all material facts, including those reasonably discoverable, which in any way influence the decision or actions of the Executive Authority or that legislature.”
• Section 55(2)(b)(i) – “The annual report and financial statements must include particulars of any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful expenditure that occurred during the financial year.”
• Section 66(1) – “An institution to which this Act applies may not borrow money or issue a guarantee, indemnity or security, or enter into any other transaction that binds or may bind that institution or the Revenue Fund to any future financial commitment, unless such borrowing, guarantee, indemnity, security, or other transaction:–
» Is authorised by this Act; » In the case of public entities, is also authorised by other legislation not in
conflict with this Act; and
CHIETA ◊ Annual Report 2010 – 2011
102
Materiality and Significance Frameworkfor the 2010/2011 financial year
» In the case of loans by a province or a provincial government business enterprise under the ownership control of a provincial executive, that they are within the limits as set out in terms of the Borrowing Powers of Provincial Governments Act, 1996 (Act No 48 of 1996).”
Significance is:-
• Section 54(2) – “Before a public entity concludes any of the following transactions, the Accounting Authority for the public entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its Executive Authority for approval of the transaction –
» Establishment or participation in the establishment of a company; » Participation in a significant partnership, trust, unincorporated joint venture
or similar arrangement; » Acquisition or disposal of a significant asset; » Commencement or cessation of a significant business activity; and » A significant change in the nature or extent of its interest in a significant
partnership, trust, unincorporated joint venture or similar arrangement.”
3. Factors considered in developing the framework
The following factors were considered in determining the framework:
• Nature of the business
Given the nature of the organisation’s activities i.e. –
» The creation and registration of national standards and qualifications in the sector and sub-sectors;
» To curriculate, assess, certify and manage performance in the sector to ensure targeted and generic service skills;
» To ensure that a quality learning provision is maintained throughout the sector;
» To create and maintain a database to target generic and specific skills development;
» To engage in learnerships and skills programme activities; and » To implement the sector skills plan.
A lower level of materiality is considered appropriate.
103
Materiality and Significance Frameworkfor the 2010/2011 financial year
• Statutory requirements
The organisation is a public entity, as contained in schedule 3A of the Public Finance Management Act, and as such is governed by legislation applicable to government entities. Such legislation is therefore prepared in terms of good corporate governance and is intended to govern finance, supply-chain management, asset management etc, within the organisation. In light of this, the probability of a material or significant infringement is considered unlikely.
• Governance structure
The Accounting Authority (governing board) is represented by its stakeholders i.e. organised employer and employee representation from the sector. The Accounting Authority, in terms of legislation is accountable for the performance and governance of the organisation to the Executive Authority (Minister of Labour). In terms of governance, the organisation is further directed by the Audit Committee (external members), the external auditors (the Auditor-General’s office), the internal auditors (external firm of auditors).
In view of the external participation in the operations of the organisation, it is considered appropriate to have a lower level of materiality.
• Control and inherent risks
The following factors were examined in determining the control and inherent risk in the organisation:
» Annual risk assessment; » Three-year internal audit plan; » Fraud-prevention plan; » Appropriate procurement policy and modalities; » The implementation and adoption of a quality management system; » Technical competence, skills and experience of staff engaged in the decision-
making process; and » Structure of the Audit Committee with reference to the King Code of Corporate
Governance.
In terms of the control and inherent risks, a lower level of materiality is considered appropriate.
CHIETA ◊ Annual Report 2010 – 2011
104
Materiality and Significance Frameworkfor the 2010/2011 financial year
• Qualitative factors
Materiality is only related to the size of and the elements of the financial statements. Misstatements that are large individually or in aggregate may affect a reasonable user’s assessment. Misstatements may also be material on qualitative grounds. The organisation has considered the following qualitative factors:
» Unusual transactions entered into that are not of a repetitive nature and are disclosable due to the nature and the knowledge thereof, affecting the decision-making of the users of financial statements;
» Sizable increase in the stakeholder base i.e. more member companies contributing SDL to the organisation;
» Fraudulent or dishonest behaviour of ALL officers or staff of the organisation. Any rand value will warrant disclosure;
» Operations in regions that are economically unstable or the expansion into new locations;
» Operations exposed to volatile markets; » Going concern and liquidity including loss of significant stakeholders; » Constraints on the availability of capital and credit; » Changes in the industry in which the entity operates; » Developing or offering new products or services; » Entities or business segments likely to be traded or lost; » Complex alliances and joint ventures; » Changes in key personnel including departure of key executives; » Changes in the IT environment; » Pending litigation and contingent liabilities; » Public accountability to stakeholders, parliament, auditors and the community
at large; » The sensitivity of the organisation’s financial information in making decisions; » Inadequate policies and procedures to mislead users; » Material infringement of legislation; » The imposition of regularity restrictions that can impair operating capabilities; » Any transaction entered into that could result in reputation risk; and » Application of new or changes in accounting policy.
4. Materiality
Definition Information is material if its omission or misstatement could influence the economic
decisions of users taken on the basis of the financial statements. Materiality depends on the size of the item or error judged in the particular circumstances
105
Materiality and Significance Frameworkfor the 2010/2011 financial year
of its omission or misstatement. Thus materiality provides a threshold or cut-off point, rather than being a primary qualitative characteristic which information must have if it is to be useful.
Materiality level The level of a material loss is assessed at 1% of budgeted total revenue (NSF
revenue and VAT excluded, includes levy income, interest and penalties and any other income).
Different levels of materiality can be used and the decision to use a conservative level of 1%, irrespective of whether the transaction/event relates to assets, liabilities, or reserves, is based on the fact that the total assets of the organisation are not considered to be an indicator of performance as the organisation is not an asset- intensive entity. And the revenue component is selected as a basis for the materiality calculation as the level of activity (grant and discretionary disbursements) is dependent on the total revenue received.
5. Significant
Definition
A transaction is significant if conducting the transaction is vitally important to fulfill the organisation’s mandate and for it to operate effectively.
Significance is larger than materiality as significant transactions may impact on the organisation as a whole. A transaction may be material but not significant, whereas all significant transactions are material.
Significance level
The organisation will promptly and in writing inform the National Treasury of the transaction and submit the relevant particulars of the transaction to its Executive Authority for approval of the transaction. The following transactions will be regarded as significant and will require full disclosure:
• Establishment or participation in the establishment of a company;• Participation in a significant partnership, trust, unincorporated joint venture or
similar arrangement;• Acquisition or disposal of a significant asset;• Commencement or cessation of a significant business activity; and• A significant change in the nature or extent of its interest in a significant
partnership, trust, unincorporated joint venture or similar arrangement.
CHIETA ◊ Annual Report 2010 – 2011
106
Materiality and Significance Frameworkfor the 2010/2011 financial year
6. Reporting of the framework
The materiality and significance framework must be updated yearly, preferably before the financial year commences to ensure the identification of material and significant transactions. The framework will further be developed in consultation with the external auditors.
The framework will be included into the:
• Corporate/strategic plan; and• Annual report.
The framework will be disclosed as contained in annexure attached.
ANNEXURE A
TREASURY REGULATION 28.1.5
“For purposes of “material” [sections 50(1), 55(2) and 66(1) (c) of the Act] and “significant” [section 54(2) of the Act], the accounting authority must develop and agree a framework of acceptable levels of materiality and significance with the relevant executive authority in consultation with the external auditors.”
MATERIAL
Section 50 (1)
(1) The accounting authority for a public entity must –
(c) on request, disclose to the executive authority responsible for that public entity or the legislature to which the public entity is accountable, all material facts, including those reasonably discoverable, which in any way influence the decision or actions of the executive authority or that legislature.
Quantitative – 1% of total revenue
Qualitative – events as contained in the Materiality and Significance Framework Policy
107
Materiality and Significance Frameworkfor the 2010/2011 financial year
MATERIAL
Section 55 (2)
(2) The annual report and financial statements must –
(b) include particulars of –
(i) any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful expenditure that occurred during the financial year.
Quantitative – 1% of total revenue
Qualitative – events as contained in the Materiality and Significance Framework Policy
Section 66 (1)
(1) An institution to which this Act applies may not borrow money or issue a guarantee, indemnity or security, or enter into any other transaction that binds or may bind that institution or the Revenue Fund to any future financial commitment, unless such borrowing, guarantee, indemnity, security or other transaction –
(a) is authorised by this Act;
(b) in the case of public entities, is also authorised by other legislation not in conflict with this Act; and
(c) in the case of loans by a province or a provincial government business enterprise under the ownership control of a provincial executive, is within the limits as set out in terms of the Borrowing Powers of the Provincial Governments Act, 1996 (Act No 48 of 1996).
All events/transactions will require disclosure – 100% compliance
CHIETA ◊ Annual Report 2010 – 2011
108
Materiality and Significance Frameworkfor the 2010/2011 financial year
SIGNIFICANT
Section 54 (2)
(1) Before a public entity concludes any of the following transactions, the accounting authority for the public entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its executive authority for approval of the transaction –
(a) establishment or participation in the establishment of a company;
(b) participation in a significant partnership, trust, unincorporated joint venture or similar arrangement;
(c) acquisition of disposal of a significant shareholding in a company;
(d) acquisition or disposal of a significant asset;
(e) commencement or cessation of a significant business activity; and
(f) a significant change in the nature or extent of its interest in a significant partnership, trust, unincorporated joint venture or similar arrangement.
All events / transactions will require disclosure – 100% compliance
CHIETA CALL CENTRE0860 244 382
CHIETA ANTI-FRAUD HOTLINE0800 204 489
WEBSITEwww.chieta.org.za
ISBN 978-1-77018-739-9RP146/2011