2019 Construction Education and Training Authority (CETA ...

ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR

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Annual Report2018/2019

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CETA GENERAL INFORMATION

Registered name Construction Education and Training AuthorityISBN number 978-0-621-47395-7RP number 147/2019Registered office address 183 Kerk Street (Cnr Old Pretoria Main Road),

Halfway House, Midrand, 1685Contact telephone numbers +27 11 265 5901Email address [email protected] address www.ceta.org.za

EXTERNAL AUDITOR’S INFORMATION

Auditor-General of South AfricaPhysical address 300 Middel Street

New MuckleneukPretoria, South Africa

Postal address Box 446Pretoria0001

Telephone +27 12 426 8000Fax +27 12 426 8257BANKER’S INFORMATIONStandard Bank 5 Simmonds Street

Johannesburg 2001

Vision

To be a firm pillar of all in

construction and nation building.

Values

Responsiveness

Respect

Integrity

Professionalism

Mission

To create a solid skills base as

a foundation for infrastructural

development and economic

empowerment.


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PART A: GENERAL INFORMATION 31. ABBREVIATIONS AND ACRONYMS 4

2. FOREWORD BY THE CHAIRPERSON OF THE ACCOUNTING AUTHORITY 6

3. CHIEF EXECUTIVE OFFICER’S OVERVIEW 8

4. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE

ANNUAL REPORT 11

5. LEGISLATIVE AND OTHER MANDATES 12

6. ORGANISATIONAL STRUCTURE 13

PART B: PERFORMANCE INFORMATION 151. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES 16

2. SITUATIONAL ANALYSIS 16

2.1. Service delivery environment 16

2.2. Organisational environment 16

2.3. Key policy developments and legislative changes 17

2.4. Strategic Outcome Orientated Goals 17

3. PERFORMANCE INFORMATION BY PROGRAMME/ACTIVITY/OBJECTIVE 18

4. REVENUE COLLECTION 37

5. DIVISIONAL REPORTS 49

PART C: GOVERNANCE 531. INTRODUCTION 54

2. PORTFOLIO COMMITTEES 54

3. EXECUTIVE AUTHORITY 54

4. THE ACCOUNTING AUTHORITY/BOARD 54

5. RISK MANAGEMENT 55

6. INTERNAL AUDIT AND AUDIT COMMITTEE 55

7. COMPLIANCE WITH LAWS AND REGULATIONS 56

8. FRAUD AND CORRUPTION 56

9. MINIMISING CONFLICT OF INTEREST 56

10. CODE OF CONDUCT 57

11. BOARD SECRETARY 57

12. SOCIAL RESPONSIBILITY 57

13. AUDIT AND RISK COMMITTEE REPORT 58

PART D: HUMAN RESOURCE MANAGEMENT REPORT 591. INTRODUCTION 60

2. HUMAN RESOURCE OVERSIGHT STATISTICS 60

PART E: FINANCIAL INFORMATION 651. REPORT OF THE AUDITOR-GENERAL TO THE PARLIAMENT ON THE

CONSTRUCTION EDUCATION AND TRAINING AUTHORITY 66

2. ANNUAL FINANCIAL STATEMENTS 69

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Submission of Annual Report to the Executive Authority

In accordance with the Public Finance Management Act

No.1 of 1999, as amended, it is with great pleasure that

we present to you the Annual Report of the Construction

Education and Training Authority (CETA).

This report covers the period from 01 April 2018 to 31 March

2019 and provides an overview of the operations, financial

performance and developments across all performance

targets as encapsulated in the Annual Performance Plan.

The CETA Accounting Authority, management and staff

would like to express their heartfelt appreciation for the

visionary and thought leadership of both the Minister

and Deputy Minister of Higher Education, Science and

Technology. We look forward to another dynamic financial

year with challenging targets to enhance the skills

development and training of the sector we prudently serve.

Mr Raymond CeleCETA Accounting Authority (AA) Chairperson

Date: 31 July 2019

The Honourable. Dr Blade NzimandeMinister of Higher Education, Science and Technology

The Honourable. Buti Manamela, MPDeputy Minister of Higher Education, Science and Technology


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GENERAL INFORMATION

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AA Accounting Authority

AFS Annual Financial Statements

APP Annual Performance Plan

APR Annual Performance Report

AQP Assessment Quality Partner

ATR Annual Training Report

CBE Core Business Executive

CBO Community-Based Organisation

CEO Chief Executive Officer

CESA Consulting Engineers South Africa

CETA Construction Education and Training Authority

CFO Chief Financial Officer

CIDB Construction Industry Development Board

CPD Corporation for Public Deposits

CPUT Cape Peninsula University of Technology

CUT Central University of Technology

DEAFSA Deaf Federation of South Africa

DG Discretionary Grant

DHET Department of Higher Education and Training

DHS Department of Human Settlements

DoL Department of Labour

DPSA Disabled People South Africa

DQP Development Quality Partner

ETQA Education and Training Quality Assurance

FETC Further Education and Training Certificate

FITA Flooring Industry Training Association

GCIS Government Communication Information and System

HET Higher Education and Training

ICB Institute of Certified Bookkeepers

ICT Information Communication Technology

JPMT Joint Project Management Team

KPI Key Performance Indicator

KZN KwaZulu-Natal

LGSETA Local Government Sector Education and Training Authority

LMIP Labour Market Intelligence Programme

LPQD Learning Pathways and Quality Development

MBSA Master Builders South Africa

MG Mandatory Grant

MIS Management Information System

MoU Memorandum of Understanding

MPLS Multi-Protocol Label Switching

MQA Mining Qualifications Authority

MTEF Medium Term Expenditure Framework

MTSF Medium Term Strategic Framework

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NAMB National Artisan Moderating Body

NARYSEC National Rural Youth Service Corps

NC National Certificate

NCV National Certificate Vocational

NGO Non-Governmental Organisation

NPO Non-Profit Organisation

NHBRC National Homebuilders Registration Council

NLRD National Learners’ Records Database

NMMU Nelson Mandela Metropolitan University

NQF National Qualifications Framework

NSDS National Skills Development Strategy

NSFAS National Student Financial Aid Scheme

NVC New Venture Creation

OFO Organising Framework for Occupations

PABX Private Automated Branch Exchange

PFMA Public Finance Management Act

PIVOTAL Professional Vocational Technical and Academic Learning

PSET Post-School Education and Training

QAP Quality Assurance Partner

QCTO Quality Council for Trades and Occupations

QMR Quarterly Monitoring Report

RPL Recognition of Prior Learning

SAFCEC South African Federation of Civil Engineering Contractors

SANMVA South African National Military Veterans’ Association

SANRAL South African National Roads Agency SOC Limited

SAQA South African Qualifications Authority

SARS South African Revenue Services

SAWIC South African Women in Construction

SDA Skills Development Act

SDF Skills Development Facilitator

SDLA Skills Development Levies Act

SETA Sector Education and Training Authority

SLA Service Level Agreement

SMME Small, Medium and Micro-sized Enterprise

SSP Sector Skills Plan

SP Strategic Plan

TETA Transport Education and Training Authority

TVET Technical and Vocational Education and Training

UKZN University of KwaZulu-Natal

UNIVEN University of Venda

UoT University of Technology

WITS The University of the Witwatersrand

WSP Workplace Skills Plan

WSS Workplace Skills Survey

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Introduction Another year has concluded and the CETA has made valiant

strides in ensuring delivery of skills within the construction

sector.

This annual report outlines the sound financial status of the

organisation and performance against set objectives. A new

Accounting Authority was introduced to carry on the baton of

providing strategic direction and ensuring sound corporate

governance on the operations of the organisation.

Based on the extended National Skills Development Strategy

(NSDS) III, including its own Sector Skills Plan (SSP),

Strategic Plan (SP) and Annual Performance Plan (APP) the

CETA is, mainly responsible for the following:

• Review, development and registration of qualifications

• Accreditation of providers and the registration of practitioners

Performance of the sector Although the construction sector remains a key player in

the domestic economy, it has of late experienced a sharp

decline in contribution to the overall Gross Domestic Product

(GDP).

The construction industry has been the sector most affected

by the deterioration in the performance of the economy in

recent years and the industry’s Gross Value Added (GVA) fell

by 0,6% in 2017 and 1,2% in 2018. There has been less of an

impact on employment in the industry however the growth in

the numbers employed has stagnated since 2015.

The future performance of the construction sector is

dependent on the level of overall performance in the

economy.

2. FOREWORD BY THE CHAIRPERSON

Mr Raymond CeleCETA Accounting Authority Chairperson


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The effect of the economical challenges faced by the sector is

one that will impact on the CETA’s revenue in the future. Total

revenue for the CETA was slightly higher than the estimated

income (Budget). Actual expenditure for discretionary grants

was above the budgeted expenditure.

Strategic Relationships and Flagship ProjectsIn relation to the CETA’s objective to strengthen and expand

strategic partnerships, which maximise sustainability and

impact of skills development interventions, the below new

strategic relationships were realised to address the CETA’s

flagship projects:

• International Placement Programme - The CETA

signed an agreement with The Chinese Culture and

International Education Exchange Centre (CCIEEC)

for 300 learners to be enrolled and placed into TVET

Colleges/Universities in and around China as interns.

• Artisan Development - The CETA has positioned itself as

an artisanal organisation. In so doing, it has emphasised

key strategic partnerships with industry experts in an

effort to provide a high quality artisanal programme.

• Partnerships with the German Institute,

Kreishandwerkerschaft Steinfurt – Warendorf (KH). The

aim of this partnership is to promote a dual system of

education within the CETA funded learning centres.

• CETA five year SMME Strategy - Through the CETA

SMME Summit, held in March 2019, the CETA facilitated

discussions with various stakeholders in the sector,

under a number of small business related topics. The

high unemployment rate places serious pressure on the

South African government not only due to the consequent

socio-economic issues related to joblessness in a

country, but also on its ability to create jobs and absorb

people into the workforce. As part of implementing the

strategy, the CETA is implementing a drive to deliberate

partnerships with public and private entities to increase

revenue

The Accounting AuthorityThe Accounting Authority of the CETA is constituted in line

with the prescripts of its Constitution.

The following are its Committees:

• Executive Committee

• Audit and Risk Committee

• Finance Committee

• Core Business Committee

• Governance and Strategy Committee

• Remuneration Committee

All the Committees of the Accounting Authority met as per the

requirements of the Constitution and successfully delivered

on their respective mandates.

The year aheadThe CETA appreciates the forthcoming challenge of the

introduction of the National Skills Development Plan 2030

and will ensure early groundwork is carried out in terms of

strategic planning. The core focus for the year ahead will be

largely on outputs and the quality thereof. More emphasis

shall be placed on ensuring increased capacity and that

support is provided to all stakeholders.

Acknowledgements The Acconting Authority has remained a firm pillar and

ensured that there is delivery in line with the mandate of the

CETA. All the members have ensured their commitment in

providing oversight to facilitate skills development to all in

construction. The Management and staff of the CETA have

proven themselves as selfless ambassadors within their

respective roles to safeguard the futures of prospective

leaders in construction.

ConclusionWith the advent of the now gazetted SETA Skills Development

Landscape, it is evident that the focus is on outcomes and

outputs. The CETA seeks to redefine its intent to ensure

alignment to the goals and strategy as mandated by the

Department of Higher Education Science and Technology

under the stewardship of the Honourable Minister, Dr Blade

Nzimande. The CETA shall in all its concerted efforts, remain

a learner-centred organisation.

Mr. Raymond CeleCETA Accounting Authority (AA) Chairperson

Date: 31 July 2019

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It is our pleasure to present the Annual Report of the

Construction Education and Training Authority (CETA) for

the 2018/19 financial year. The CETA has strived to ensure

that it remains a learner centred organisation, committed

to ensuring delivery of outcomes based learning to

disadvantaged learners from all disciplines in construction.

The CETA continued on the same trajectory as per the

previous three financial years wherein a clean audit

outcome was maintained through constant efforts to ensure

delivery of the CETA’s mandate. The audit report of the

CETA demonstrates the level of internal controls that are

in place to ensure adequate and effective reporting of

achievements. This exemplifies the focused approach

towards strengthening internal processes over the last few

years in achieving a clean administration.

In line with the Strategic Plan and Annual Performance Plan

as approved by the Accounting Authority, the organisation

strives to build on the previous lessons learnt and the

implementation of continuous improvement mechanisms.

This in turn has created an enabling environment for the staff

and Management to execute their duties and address the

needs of the sector.

The aim has been to provide diverse opportunities for all

those seeking post-school education and training that

combines new and progressive ways to prepare learners

for the workplace, including formal employment and self-

employment.

The CETA positioned itself as an artisanal CETA in order to

progress the standards of artisan training in the country.

This has paved a way for an exciting review of the status quo

and allowing for benchmarking activities with international

standards and this for a sector that is facing challenging

economic constraints within the public and private sectors.

The level of ongoing support from global and local partners

aimed at implementing this critical programme has been

outstanding.

3. CHIEF EXECUTIVE OFFICER’S OVERVIEW

Mr Robert SemenyaActing Chief Executive Officer


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General financial review of the public entity In the financial year 2018/2019, CETA received R648 million

in skills development levies compared to R596 million in the

previous period. We successfully disbursed R89 million in

mandatory grants compared to R85 million in 2017/18, while

R695 million was ploughed into discretionary grant projects,

compared to R344 million in the previous period.

It should be noted that all budgeted funds for 2017/18 were

allocated. This also saw an increase in disbursement of

project expenditure due to increased efforts in the processing

of invoices during the financial year.

The audited financial statements reflect R11.67 million in

irregular expenditure due to unauthorised adjustment to

employment costs. This is currently a legal matter between

the CETA and its employees. The CETA board resolution

indicated action to be taken in a form of consequence

management and to recover the irregular expenditure.

In spite of these developments and disruptions affecting

staff during the year, our audit report remains clean with non-

material findings raised by the Auditor General. An Audit

Action Plan is in place to address the Auditor-General’s

concerns and non-compliance gaps and control deficiencies

that have emerged as a major risk to the organisation. The

CFO will monitor its implementation constantly.

Future Outlook The outlook of the SETA landscape is optimistic as we start

closing down the curtain on the NSDS III era with a new

vision in sight, that of the National Skills Development Plan

(NSDP) 2030.

The CETA is setting itself up to accommodate the vision by

safeguarding its strategy through its flagship projects of:

• Thapelo Madibeng Bursary Scheme - The CETA made

the decision to honour the memory of the former Core

Business Executive, Mr Thapelo Madibeng, who made a

significant contribution to skills development at the CETA

and other institutions. The strategic goal of the bursary

programme is to have an increased pool of skilled

and competent graduates entering the construction

sector. The programme targets 2000 learners who are

interested in pursuing their studies in the construction

sector.

• International Placement Programme - In order to

address issues of transformation in the sector the CETA

has embarked on various work placement programmes.

These types of programmes address work placement

difficulties for graduates and the limited practical

workplace experience.

• Recognition of Prior Learning - The RPL programme

identifies principles and processes through which prior

learning, whether formal, non-formal or informal, is

measured and mediated for recognition and certified

against the requirements for credit in the formal

education and training system.

• CETA Academy - In partnership with WITS Enterprise the

CETA aims to provide SETA customised skills through

the establishment of a CETA Academy. The Academy

will enable SETAs to implement skills development as

there are currently no SETA specific courses.

• Establishment and Construction of Skills Development

Centres - The Skills Development Centres aim to provide

access to occupational programmes and education

to underserved communities in rural areas through

excellent educational facilities.

• Artisanal Program - The training of artisans continues

to be a national priority. The CETA has positioned itself

as an artisanal SETA. The sector is largely informal and

often these informal skills are not recognised. The CETA

is aiming to address this by ensuring that relevant skills

are identified, and candidates enter the formal system to

acquire formal qualifications.

Partnerships remain at the heart of the CETA. The focus will

be on greater cooperation between education and training

institutions and the workplace; expanded access, improved

quality and increased diversity of provision.

Economic Viability The construction sector is an important contributor to the

South African economy. The construction industry has been

the sector most affected by the downturn in capital spending

in the economy. The future performance of the construction

sector is dependent on the level of overall domestic

economic performance.

We anticipate the recovery will be slow but will accelerate

owing to rising consumer and business confidence based on

structural reforms in the economy, increased policy certainty

and higher public infrastructure spending. The result will

be a significant increase in the demand for labour services

in the industry. We anticipate the demand for elementary

occupation workers in small and medium sized companies

will be more resilient, given the assumption of some growth

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in total output in the industry over the next few years.

The CETA aims to sustainably strengthen the vocational

training supply and the employability of artisans in order

to improve the labour-market oriented vocational training

system, and ultimately improve the employability and

provide opportunities of self-employment. The development

of the sector will also largely reply on the CETA bridging the

skills gap and providing workplace placement opportunities

for students through strategic partnerships with employers.

Acknowledgements and Appreciation In the past year, we have encouraged our stakeholders to

support and participate in skills development initiatives by

the CETA and appreciation goes to our active employers,

professional bodies, training providers and beneficiaries

of CETA programmes for continuing to work with us and

inspiring us to deliver on our mandate.

We acknowledge the support received from the Accounting

Authority of the CETA who have exercised high level of good

governance amid a challenging period in the organisation.

These are independent individuals who were appointed

as of 01 April 2018, exert themselves in discharging their

oversight duties as a collective.

In the year under review we mourned the passing of Mr

Thapelo Madibeng and Ms Esther Mpolaise, the Core

Business Executive and Manager: Data Management

respectively. They were highly dedicated and committed

stalwarts who exerted themselves to ensuring the delivery

of skills within the construction sector and the impact of their

presence shall be felt for years to come.

The Management and staff of the CETA who are the foot

soldiers who carry this ship through the waves have

continuously demonstrated their commitment to ensuring the

mandate of the CETA is achieved. These individuals have

consistently sacrificed their time and skills during difficult

times towards a common goal.

Together as a unit, the CETA can achieve more.

Mr Robert SemenyaCETA Acting Chief Executive Officer

Date: 31 July 2019


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4. Statement of responsibility and confirmation of accuracy for the annual report

To the best of our knowledge and belief, we confirm the following:

All information and amounts disclosed in the Annual Report is consistent with the Annual Financial Statements audited by

the Auditor-General;

The Annual Report is complete, accurate and is free from any omissions.

The Annual Report has been prepared in accordance with the guidelines as issued by the National Treasury;

The Annual Financial Statements (Part E) have been prepared in accordance with the South African Statements of Generally

Recognised Accounting Practices (GRAP) including any interpretations, guidelines and directives issued by the Accounting

Standards Board;

The Accounting Authority has an oversight role in the preparation of the Annual Financial Statements by the Chief Financial

Officer and her team and is assisted by both the Finance and Audit Committees who review these financial statements prior

to submission to the Accounting Authority, the National Treasury and the Department of Higher Education, Science and

Technology.

The Accounting Authority has an oversight role in the establishment and implementation of a system of internal control that

has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the

human resources information and the Annual Financial Statements. The Acting Chief Executive Officer and the management

team, the internal auditors and the Audit Committee assist the Accounting Authority in accomplishing this task; and the

Auditor-General has been engaged to express an independent opinion on the Annual Financial Statements.

In our opinion, the Annual Report fairly reflects the operations, the performance information, the human resources information

and the financial affairs of the CETA for the financial year ended 31 March 2019.

Yours faithfully,

Mr. Robert Semenya Mr. Raymond CeleActing Chief Executive Officer Chairperson of the Accounting Authority

Date: 31 July 2019 Date: 31 July 2019

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5. LEGISLATIVE AND OTHER MANDATES

5.1 Legislative MandateThe Construction Education and Training Authority (CETA) is

established in terms of the Skills Development Act. No.97 of

1998 as amended and listed in terms of the Public Finance

Management Act No, 1 of 1999 as amended as a Schedule

3A public entity.

The following are the legislative policies and other frameworks

that govern the work of the CETA:

5.1.1. The Constitution of the Republic of South Africa

Act No. 108 of 1996 - it addresses the political

transformation agenda of South Africa.

5.1.2. The Skills Development Act No. 97 of 1998 - provides

a framework to develop and improve the skills of

South African workforce.

5.1.3. The Skills Development Levies Act No.9 of 1999 -

makes provision for the funding of skills development

interventions.

5.1.4. The Income Tax Act No 58 of 1962 – Learnerships

Allowance (Revised)

5.1.5. The Public Finance Management Act No.1 of 1999,

as amended by Act 29 of 1999) - regulates financial

management in government and public entities to

ensure transparency, effective and efficient use of

revenue, expenditure, liabilities and assets.

5.1.6. The Employment Equity Act No. 55 of 1998 aims

to facilitate workplace transformation through the

elimination of unfair discrimination and implementation

of affirmative action and measures to enable equitable

representation of employees from different race and

gender groups in the workplace.

5.1.7. The National Qualifications Framework, Act No. 67 of

2008.

5.1.8. White Paper on Post School Education and Training

(PSET).

5.1.9. Human Resources Development Strategy for South

Africa (HRDSSA).

5.1.10. National Skills Development Strategy (NSDS) III

5.1.11. National Infrastructure, Act No. 23 of 2014

5.1.12. The New Growth Path and the National Skills Accord

5.1.13. National Development Plan: Vision for 2030 (NDP)

5.1.14. Medium Term Strategic Framework (MTSF)

5.1.15. Strategic Integrated Projects (SIPs)

5.1.16. Special Economic Zones (SEZ)

5.1.17. National Industrial Policy Framework (NIPF) and

Industrial Policy Action Plan (IPAP) 2014/15 -

2018/19 - 2020/21

5.1.18 The SETA Grants Regulations, regarding monies

received by SETA’s and releted matters.

5.1.19. Broad Based Black Economic Empowerment, Act

No. 53 of 2003.

5.1.20. The Preferential Procurement Policy Framework, Act

No. 5 of 2000.

5.1.21. Construction Regulations, 2014

5.1.22. Construction Charter

5.2 National Skills Development Strategy (NSDS III) National Skills Development Strategy III aims to:

5.2.1 Improve the skills development system so that it

is more responsive to the labour market needs

and social equity requirements;

5.2.2 Integrate workplace training and theoretical

learning;

5.2.3 Improve the skills level of graduates of secondary

and tertiary education;

5.2.4 Address skills shortages in the artisan, technical

and professional fields;

5.2.5 Reduce the over-emphasis on NQF level 1-3

learnerships;

5.2.6 Equip those in the workforce with sufficient

technological skills;

5.2.7 Improve co-operation between the universities,

Further Education and Training colleges and Sector

Education and Training Authorities.;

5.2.8 Support economic growth and development

through viable skills development;

5.2.9 Develop sufficient skills for rural development;


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5.3 National Skills AccordThe National Skills Accord was signed in July, 2011 by the Government and social partners to:

5.3.1 Expand the level of training, using existing facilities more fully;

5.3.2 Make internship and placement opportunities available within workplaces;

5.3.3 Set guidelines of ratios of trainees and artisans across the technical vocations, in order to improve the level of

training;

5.3.4 Improve the funding for training and use the funds available for training as incentives for companies to train;

5.3.5 Set annual targets for training in state-owned enterprises;

5.3.6 Improve SETA governance, financial management as well as stakeholder involvement;

5.3.7 Align training to the New Growth Path and improve the Sector Skills Plans;

5.3.8 Improve the role and performance of TVET Colleges;

6. ORGANISATIONAL STRUCTURE

EXECUTIVE AUTHORITY

ACCOUNTING AUTHORITY

CHIEFEXECUTIVE

OFFICER

MANAGERIN THE OFFICE OF THE CEO

MANAGERPROVINCIALOPERATIONS

BOARDSECRETARIAT

EXECUTIVEASSISTANT

TO CEO

COREBUSINESS

EXECUTIVE

CHIEFFINANCIALOFFICER

PROJECTSEXECUTIVE

SENIORMANAGER

LEGAL SERVICES

CORPORATESERVICESDIVISION

CORE BUSINESS DIVISION

FINANCE DIVISION

PROJECTS DIVISION

LEGAL DEPARTMENT

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PERFORMANCE INFORMATION

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1. AUDITOR’S REPORT: PREDETERMINED OBJECTIVESRefer to page 66 - 68 of the Report for the Auditor’s Report, published as Part E: Financial Information.

2. SITUATIONAL ANALYSIS

2.1 Service delivery environmentThe development of the CETA Annual Report is informed by

the NSDS III goals, objectives and programmes. In terms

of its strategy and the APP, the CETA identified five primary

strategic objectives:

The Strategic objectives are as follows:

• Support skills development of new entrants and the

unemployed into the Construction Sector;

• Enhance the skills of the existing workforce of the

Construction Sector;

• Respond to changing sectoral needs and priorities

including contributing to transformation through skills

development in the construction sector;

• Strengthen and expand strategic partnerships to

maximise sustainability and impact of skills development

interventions;

• Support national imperatives in relation to skills

development within the Construction Sector.

The CETA’s strategic plan is aligned to the following eight

goals 4.1 - 4.8 of the NSDS III:

Goal 4.1: Establishing a credible institutional mechanism

for skills planning;

Goal 4.2: Increasing access to occupationally-directed

programmes;

Goal 4.3: Promoting the growth of Public TVET College

system that is responsive to sector, local,

regional and national skills needs and priorities

Partnerships;

Goal 4.4: Addressing the low level of youth and adult

language and numeracy skills to enable

additional training. The CETA does not

implement ABET programmes. However,

in line with this goal, it has registered the

GETC in Construction Processes as well as

occupational short skills programmes at NQF

Level 1 and reported as part of goal 4.2.

Goal 4.5: Encouraging better use of workplace-based

skills development;

Goal 4.6: Encouraging and supporting cooperatives,

small enterprises, worker initiated, NGO and

community training initiatives;

Goal 4.7: Increasing public sector capacity for improved

service delivery and supporting the building of

a developmental state.

Goal 4.8: Building career and vocational guidance

The CETA also addresses transformational imperatives

aligned to the NSDS III objectives.

2.2 Organisational environmentIn the 2015/16 financial year, the CETA for the first time

since its establishment received a clean audit opinion from

the Auditor General and this was maintained between the

2016/17 and 2017/18 financial years. This clean audit is an

attestation of the clean administration that the organisation

ran in the past financial years, as well as a testimony of the

commitment and dedication of the Accounting Authority,

management and staff of the organisation to its mandate.

It is a benchmark that the organisation has set itself for the

remainder of its existence.

The CETA also obtained a clean audit from the Auditor

General for the years 2015/16, 2016/17 and 2017/18 due to

among others - appropriate accounting policies, supported

by reasonable and prudent judgements and estimates, have

been applied on a consistent basis. The achievement of the

clean audits by the CETA is by no means a small feat, given

the history of the organisation. This is the final culmination of

the rigorous process of a clean administration which has its

origins during the Administrative period.

Further to the above-mentioned clean audit achievement of

the CETA, the organisation had a 100% decrease in irregular

expenditure from the year 2014/15, when it reported irregular

expenditure of R637 000 – which in the main – was a legacy

of issues prior to Administration to R0 in 2015/16 and

2016/17. The CETA also maintained its R0 in fruitless and

wasteful expenditure which it had for the past financial year.

The overall audit report of the CETA clearly demonstrates

that internal controls are in place, adequate and effective.

This the culmination of the aggressive processes that the

CETA put in place over the last few years in achieving a

clean administration.

Not only did the CETA achieve this clean audit, but also

delivered very strongly on its mandate in 2017/18 which is


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evidenced by its achievements in the number of learners

reported.

The Accounting Authority and its management remains

committed to ensure that the CETA continues to deliver on

its mandate whilst it continuously improves its risk mitigation

strategies and implementation in its efforts to maintain

a clean audit. The above will mean that the CETA pays

careful attention to the areas of continuous improvement – as

identified by the last management report of the AG.

2.3 Key policy developments and legislative changesDuring the period under review, there were no major

changes to relevant policies and legislation that affected

CETA operations.

2.4 Strategic Outcome Orientated Goals

The Programme Structure: The CETA’s Strategic Plan and Annual Performance Plan have

four broad programmes. These programmes are mapped in

line with the Department of Higher Education, Science and

Technology and Treasury Guideline Strategic Framework.

The Four broad Programmes of the 2018/19 CETA Strategic

Plan/Annual Performance Plan are listed below:

Programme 1: Administration

Programme 2: Skills Planning and Reporting

Programme 3: Learning Programmes and Projects

Programme 4: Quality Assurance

Programme 1: Administration• Corporate Services

• Finance

• Governance

• Information, Communications and Technology

Programme 2: Skills Planning, Research and Reporting • Skills Planning

• Reporting

Programme 3: Learning Programmes and Projects• Implementation of learning programmes e.g:

» Short Skills Programmes

» Learnerships

» Apprenticeships

» Recognition of Prior Learning

• Graduate Placements

• Development of Skills Centres

• Development and Support of SMME’s, Co-operatives,

NGOs, CBOs

• Bursaries

• Partnerships

• Career and vocational guidance

• Certification (excluding trades)

Programme 4: Quality Assurance • NQF Provider Accreditations

• Qualifications Development

• Monitoring and Evaluation

Goal 1 To provide ethical and strategic leadership and management.

Goal 2 To ensure a credible mechanism for skills

planning and reporting in the construction

sector.

Goal 3To address skills priorities

within the construction sector.

Goal 4Implementation of

quality assurance that will enhance and ensure

quality provision of training.

18


3. PERFORMANCE INFORMATION BY PROGRAMME

PART B : Programme and Sub-Programme PlansPROGRAMME 1: ADMINISTRATION

This programme consists of the following sub-programmes:

1.1 Corporate Services

1.2 Finance

1.3 Governance

Information, Communications and TechnologyGoal: To provide ethical and strategic leadership and management.

1.1 Sub-Programme CORPORATE SERVICES

Strategic Objective Provide Effective Human Capital Management

Objective statement To provide effective human resource management within the CETA for the delivery of its mandate.

Baseline Approved organogram; Staff capacity; performance management system.

Justification To build required capacity in order to deliver on the mandate of the CETA.

Links Key acts include the Occupational Health and Safety Act (OHS); Labour Relations Act (LRA); Basic Conditions of Employment Act (BCEA) and Employment Equity Act (EEA); Compensation for Injuries and Disease Act.

1.2 Sub-Programme FINANCE

Strategic Objective Sound Financial Management and Accurate Reporting

Objective statement To provide effective financial management in line with the requirements of the PFMA.

Baseline Unqualified Audit Outcome.

Justification To ensure efficient and effective systems of financial management, internal controls, risk management and compliance.

Links Public Finance Management Act (PFMA), Treasury Regulations, and CETA Policies and Procedures.

1.3 Sub-Programme GOVERNANCE

Strategic Objective Exemplary Corporate Governance and Management

Objective statement Provide effective corporate governance and management of the CETA in line with the Constitution and Strategic Plan.

Baseline CETA Constitution; Strategic Plan; PFMA.

Justification Good Corporate governance to be able to deliver on the mandate of the CETA.

Links NSDS; CETA Constitution; PFMA; King IV; CETA Policies.

1.4 Sub-Programme INFORMATION, COMMUNICATIONS AND TECHNOLOGY

Strategic objective Effective Governance of ICT

Objective statement To provide an effective ICT environment based on the Department of Public Service and Administration (DPSA) ICT corporate governance framework in line with applicable corporate governance frameworks.

Baseline CETA ICT Governance Framework.

Justification To ensure a reliable, effective and efficient IT infrastructure environment at the CETA.

Links DPSA Corporate Governance Framework (ICT).


19

1.1 Strategic Objective Annual Targets

Purpose – to provide strategic leadership, management and support services to the CETA.

Strategic Objective5 Year Strategic

Plan Target

Baseline (Audited / Actual Performance)

2017/2018

Planned Target2018/2019

Actual Achievement2018/2019

Deviation from Planned Target to Actual Achievement For 2018/2019

1.1 Provide Effective Human Capital Management

95% of the vacant positions, are filled as per the organogram (define “vacant” in TID).

27% 5% 47% Target Not AchievedDuring the Financial year under review, recruitment priorities were identified within the organisation by the management team.

18 new vacancies were filled. The issue of office space and budget constraint contributed in not achieving the target.


Resource capacitation and human capital training and development of CETA Staff as per the organisational skills matrix (define “skills matrix – number of staff and programmes listed” in TID).

90% 100% 100% Target AchievedBursaries - 18 staff members have enrolled for a PIVOTAL qualification through the Central University of Technology.

Bursaries – 14 management staff members enrolled for a PIVOTAL qualification through Wits University.A further four of the staff members are being funded by the CETA on a bursary programme with UNISA, MANCOSA and Wits.

Capacity Building workshops; Inductions and Policy Workshops were conducted.

1.2 Development and establishment of a SETA academy

Establishment of partnerships with public institutions for effective human capital development.

- Partnerships with public institutions for the delivery of SETA programmes.

Partnerships with public institutions for the delivery of SETA programmes.

Target Achieved

1.3 Sound Financial Management and Accurate Reporting

Statutory compliance requirements are adhered to maintain an unqualified audit opinion.

Unqualified Audit Opinion – Clean Audit

Unqualified Audit Opinion

Unqualified Audit Opinion – Clean Audit

Target Achieved

1.4 Exemplary Corporate Governance and Management

Number of functional governance structures in operation to monitor the efficiency and functionality of the organisation in line with statutory requirements.

7 7 7 Target Achieved


Number of Governance Charter reports submitted.


20


Strategic Objective5 Year Strategic

Plan Target


2017/2018

Planned Target2018/2019



1.5 Effective Governance of ICT

Quarterly ICT Progress Reports are submitted to the Audit Committee and Accounting Authority.


Availability of ICT systems in the organisation as per the ICT plan.

95% 90% 95% Target ExceededSystems were stable and the committed SLAs were exceeded in relation to projected percentages.

1.6 Enhancement of public relations and marketing activities

Marketing through existing projects and implementation of other cost effective branding initiatives.

- - 1 Target Achieved

Programme Performance Indicators and Annual Targets for MTEF 2018/19Goal: To provide ethical and strategic leadership and management.

Links To Strategic Objectives

Performance Indicators


2017/2018Planned Target

2018/2019


Deviation from Planned Target to Actual Achievement for 2018/2019


Reduce Vacancy rate to 5%

27% 5% 47% Target Not AchievedDuring the Financial year under review, recruitment priorities were identified within the organisation by the management team.

18 new vacancies were filled. The issue of office space and budget constraint contributed in not achieving the target.


% of staff trained or enrolled in further studies/received continuous development as per the skills matrix (informed by the signed PDP and statutory requirements).

90% 100% 100% Target AchievedBursaries - 18 staff members have enrolled for a PIVOTAL qualification through the Central University of Technology.

Bursaries – 14 management staff members enrolled for a PIVOTAL qualification through Wits University.A further four of the staff members are being funded by the CETA on a bursary programme with UNISA, MANCOSA and Wits.

Capacity Building workshops; Inductions and Policy Workshops were conducted.

% of employees with approved performance plans.

100% 100% 100% Target Achieved


21





2018/2019




Provide bursaries to CETA staff.

- 15 36 Target Exceeded


Conduct at least one staff development intervention per quarter in the following areas: - Writing skills·- Staff training on legislation, policies and procedures - CETA professional etiquetteInternational ComputerDriving License (ICDL)A SETA accredited short course in project management.

- 4 4 Target Achieved

Partner with a public institution of higher education to develop a programme at an NQF 9 level specifically for SETA Executives and Management.



Fund the participation of SETA Executives and Management in the CETA developed NQF 9 programme.


1.3 Sound Financial Management and Accurate Reporting

Quarterly financial reports are submitted to the DHET.


Creditor payment age as per the Treasury Regulations.

30 days 30 days 30 days Target Achieved


Number of functional governance committee meetings on a quarterly basis to provide oversight on the delivery of the CETA’s mandate and provide guidance.


Number of Governance Charter reports submitted.


22






2018/2019




Reviewed and approved delegation of Authority Framework.

Approved Delegation of Authority



Target Achieved

All policies and procedures are approved annually.

Approved policies and procedures



Target Achieved

Train and/or update all active members of the Accounting Authority once per annum on corporate governance in the public sector.


1.5 Effective Governance of ICT

ICT Charter and ICT Strategic and Implementation Plan are approved annually.




Target Achieved

Quarterly ICT Progress Reports are submitted to the Audit Committee and Accounting Authority.


Monitoring, analysis and responding to ICT systems performance.


Acquire tablets for learners on CETA-funded projects.

- 1 0 Target Not AchievedThe CETA could not achieve this target due to the non-appointment of a suitable service provider.

Free Wi-Fi zones for all completed CETA skills development centres.

- 1 0 Target Not AchievedThe CETA could not achieve this target due to the non-appointment of a suitable service provider.

Acquire a biometric system for registration of learners on CETA-funded projects.

- 1 0 Target Not AchievedAlthough the procurement process was initiated, it could not be concluded timeously for the implementation of the system.


Provision of a minimum of two sets of CETA-branded PPE’s per annum to learners on CETA-funded projects.

- 1 1 Target AchievedThese target has been met through the DG funding allocated to approved companies where PPE is paid for per project.


23





2018/2019




Provision of a toolkit to learners on CETA-funded projects.

- 1 1 Target AchievedThese target has been met through the DG funding allocated to approved companies where the toolkit is paid for per project.

Regular feedback with media houses (broadcasting, print and radio) and use of new media to raise the profile of the CETA.

- 1 7 Target ExceededSeven radio interviews (with 7 stations) were completed which reached approximately 6 774 000.00 listeners in Eastern Cape, KwaZulu-Natal, Gauteng, Mpumalanga, Limpopo, Northern Cape, Western Cape and Free State.

Link to Budget2017/2018 2018/2019

Programme/activity/objective

Budget R’000

Actual Expenditure

R’000

(Over)/Under Expenditure

R’000

Budget R’000

Actual Expenditure

R’000


R’000Administration 87,170 74,236 12,934 89,386 81,837 7,549

PROGRAMME 2: SKILLS PLANNING AND REPORTING


2.1 Skills Planning2.2 ReportingGoal: To ensure a credible mechanism for skills planning and reporting in the construction sector.

2.1 Sub-Programme SKILLS PLANNINGStrategic Objective Sector Skills Needs Addressed

Objective statement To ensure effective planning to address the skills priorities in the sector.

Baseline Sector Skills Plans; Workplace Skills Plan; Annual Training Report.

Justification Suitably trained workforce in the construction sector.

Links Labour Market Intelligence Programme (LMIP); Employment Equity Reports (Labour); Stats SA (labour force survey).

NSDS III Link 4.1 Establishing a credible institutional mechanism for skills planning.4.2 Increasing access to occupationally-directed programmes.

2.2 Sub-Programme REPORTING

Strategic Objective Skills Performance Reporting

Objective statement To ensure accurate reporting of sector skills development initiatives.

Baseline Quarterly Performance Report; Annual Performance Report.

Justification All training interventions are accurately reported to ensure further skills planning.

Links Treasury Performance Information Guidelines; DHET Performance Information Guidelines.

NSDS III Link 4.2 Increasing access to occupationally-directed programmes.

24


Strategic Objective Annual TargetsGoal: To ensure a credible mechanism for skills planning and reporting in the construction sector.

Strategic Objective

5 Year StrategicPlan Target


2017/2018

Planned Target

2018/2019



2.1 Sector Skills Needs Addressed

Number of levy paying members with submitted and approved WSPs and ATRs that contribute to the development of the SSP.

2 345 2 100 2 425

Target Exceeded

The CETA conducts stakeholder engagement sessions to support levy-paying entities in ensuring submission of their WSPs and ATRs. This achievement excludes nine non levy-paying entities that submitted WSPs.

2.2 Skills Performance Reporting

Ensuring accurate and compliant reporting on CETA Performance Information.


Programme Performance Indicators and Annual Targets for MTEF 2018/19Goal: To ensure a credible mechanism for skills planning and reporting in the construction sector.

Links To Strategic

Objectives Performance Indicators

Baseline (Audited / Actual

Performance) 2017/2018

Planned Target

2018/2019



2.1 Sector Skills Needs Addressed

Number of levy paying members with submitted and approved WSPs and ATRs that contribute to the development of the SSP. 2 345 2 100 2 425

Target Exceeded

The CETA conducts stakeholder engagement sessions to support levy-paying entities in ensuring submission of their WSPs and ATRs. This achievement excludes nine non levy-paying entities that submitted WSPs.

One SDF workshop per province per annum on WSP and ATR compilation and submission.


Produce an updated and approved Sector Skills Plan aligned to the DHET SSP Framework.


Perform at least one research activity to measure the delivery of skills in the sector.


Quarterly Monitoring Reports (QMR) are submitted to DHET and validation reports are kept.


Link to Budget2017/2018 2018/2019

Programme/activity/objectiveBudget

R’000

Actual Expenditure

R’000


R’000

Budget R’000

Actual Expenditure

R’000


R’000Skills & Reporting 144,120 85,150 58,970 151,976 89,323 62,654


25

PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS


3.1 Implementation of learning programmes e.g.:• Short Skills Programmes

• Learnerships

• Apprenticeships

• Recognition of Prior Learning3.2 Graduate Placements3.3 Development of Skills Centres3.4 Development and Support of SMME’s, Co-ops, NGOs, CBOs & NPOs3.5 Partnerships3.6 Bursaries3.7 Career and vocational guidance3.8 Certification (excluding trades)

Goal: To address skills priorities within the construction sector.

3.1 Sub-Programme IMPLEMENTATION OF LEARNING PROGRAMMES Strategic Objective A skilled and capable workforce in the construction sector

Objective statement To ensure the skills needs in the sector are addressed with adequately skilled workforce.

Baseline Strategic Plan; Annual Performance Plan; Sector Skills Plan.

Justification A capacitated, empowered and appropriately skilled workforce in the construction sphere.

Links CETA Grants Policy; PIVOTAL List.


3.2 Sub-Programme GRADUATE PLACEMENTSStrategic Objective A Transformed Built Environment Profession

Objective statement To address transformation challenges within the built environment through increasing access to built environment professions for individuals from previously disadvantaged groups.

Baseline Employment Equity Report; Construction Industry Charter; Survey Reports; Sector Skills Plan.

Justification To address the current demographic imbalances and to achieve equity within the built environment professions.

Links BBBEE; Construction Industry Charter Codes.


3.3 Sub-Programme DEVELOPMENT OF SKILLS CENTRESStrategic Objective Greater Access By Marginalized Communities To Skills Development Through Infrastructural Support

Objective statement To ensure increased access to skills development programmes by marginalised communities through the construction of skills development centres.

Baseline CETA Situational Analysis Research Report (Skills Development Institutes); Sector Skills Plan.

Justification To address the lack of technical infrastructure capacity for skills training in marginalised communities.

Links Skills Development Act; CETA Grants Policy; Grant Regulations; National Development Plan.

3.4 Sub-Programme DEVELOPMENT AND SUPPORT OF SMME’s, CO-OPs, NGOs, CBOs & NPOsStrategic Objective A Vibrant Civil Society Engagement In Skills Development Within The Construction Sector

Objective statement To achieve sustainable development through increased participation of SMMEs, Co-ops, NGOs, CBOs, NPOs in skills development in the construction sector.

Baseline Sector Skills Plan; CETA SMME Programme.

Justification To address the imbalances within the construction sector.

26


3.4 Sub-Programme DEVELOPMENT AND SUPPORT OF SMME’s, CO-OPs, NGOs, CBOs & NPOsStrategic Objective A Vibrant Civil Society Engagement In Skills Development Within The Construction Sector

Links National SMME Strategy; Comprehensive Rural Development Programme; Stats SA Survey of Employers and Self Employed.

NSDS III Link 4.6 Encouraging and supporting co-operatives, small enterprises, worker initiated, NGO and community training initiatives.

3.5 Sub-Programme PARTNERSHIPSStrategic Objective Strengthened Collaboration and Partnerships for skills development in the construction sector

Objective statement To ensure a wider impact, greater reach and a multi sectorial approach to skills development.

Baseline Signed Memorandum of Understanding (MOU); Sector Skills Plan.

Justification To give effect to the objective of the Constitution of inter-Governmental collaborations.

Links NSDS III; Sector Skills Plan.

NSDS III Link 4.3 Promoting the growth of a public TVET college system that is responsive to sector, local, regional and national skills needs and priorities.4.5 Encouraging better use of workplace-based skills development.4.7 Increasing public sector capacity for improved service delivery and supporting the building of a developmental state.Item 6. Building partnerships for a skills revolution.

3.6 Sub-Programme BURSARIESStrategic Objective An increased pool of skilled and competent graduates to enter the construction sector

Objective statement To provide financial support to deserving students from previously disadvantaged communities in the main to enrol for studies relevant to the construction sector.

Baseline CETA funded bursaries.

Justification To address socio economic challenges faced by-in the main-township and rural learners.

Links Rural Development Strategy of the Country; NSDS III; Sector Skills Plan; #FeesMustFall campaign.


3.7 Sub-Programme CAREER AND VOCATIONAL GUIDANCEStrategic Objective Increased knowledge and interest in the construction careers

Objective statement To attract new entrants into the construction sector occupations.

Baseline CETA Career Guide; CETA career exhibitions.

Justification Promote post school education and training opportunities within the construction sector.


NSDS III Link 4.8 Building career and vocational guidance.

3.8 Sub-Programme CERTIFICATION (EXCLUDING TRADES)Strategic Objective Increased throughput of learners on accredited construction programmes through a strengthened certification

process

Objective statement To award successful learners with valid recognised certificates and Statement of Achievements.

Baseline NLRD Uploads, QMR Reporting of certified learners.

Justification To conduct external moderation of the assessments to ensure that the quality standard is maintained by accredited CETA training providers and to reward qualifying learners with recognized certificates.



27

3.1 Programme Performance Indicators and Annual Targets for MTEF 2018/19SUB-PROGRAMME: IMPLEMENTATION OF LEARNING PROGRAMMES

Purpose/Strategic Objective: A skilled and capable workforce in the construction sector.

NSDS III Link: Goal 4.2 - Increasing access to occupationally directed programmes in the Construction Sector.

Links To Strategic

Objectives




Planned Target

2018/2019


Deviation from Planned Target to Actual Achieve-ment for 2018/2019

3.1.1 Learnerships EnteredUnemployed learners per year

3 420 (funded) 2 874 (funded)

6 463 Target ExceededThe CETA has ensured increased support to entities implementing CETA-funded learnership projects through capacity building workshops.

This resulted in more entities being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented.

1 178 (Unfunded) 366 (Unfunded)

725 Target ExceededThe CETA has increased support and resources to assist entities with the registration of learners for unfunded projects.

Employed learners per year

0 (funded) 0 (funded) 10 Not measured and therefore, there is no deviation against this target. This performance indicator is included as per DHET SLA Template.

64 (Unfunded) 55 (Unfunded)

130 Target ExceededThe CETA has increased support and resources to assist entities with registration of learners for unfunded projects.

Learnerships CompletedUnemployed learners per year


1 925 Target ExceededThe CETA has ensured increased support to entities implementing CETA-funded learnership projects through capacity building workshops.

The CETA has thus managed to exceed the target through ensuring learners entered in the previous financial years complete and exit programmes.

1 411 (Unfunded) 183 (Unfunded)

2 143 Target ExceededThis is due to the CETAs constant and active role in ensuring moderation and certification of learners that have completed training as well as compliance by industry and training providers.

b) Employed learners per year



53 Target ExceededThis is due to the CETAs constant and active role in ensuring external moderation and certification of learners that have completed training.

28


Links To Strategic

Objectives




Planned Target

2018/2019



Skills Programmes Entered3.1.1 Unemployed

learners per year


4 880 Target ExceededThe CETA has ensured increased support to entities implementing CETA-funded skills programme projects through capacity building workshops. This resulted in more entities being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented.



b) Employed learners per year

129 (funded) 0 (funded) 16 Not Measured, although the CETA had no target for this indicator, the CETA achieved a total of 16 learners entered as a result of projects funded through discretionary grants.



Skills Programmes CompletedUnemployed learners per year

2 073 (funded) 627 (funded)

1 708 Target ExceededThe CETAs constant and active role in ensuring external moderation and certification of learners that have completed training.

The CETA has provided support to entities implementing projects under the qualifications of the CETA through the JPMTs.


4 126 Target ExceededThe CETAs constant and active role in ensuring moderation and certification of learners that have completed training as well as compliance by industry and training providers has assisted in exceeding target.




429 Target ExceededThis is due to the CETAs constant and active role in ensuring external moderation and certification of learners that have completed training as well as compliance by industry and training providers.

Artisan EnteredUnemployed learners per year


8 421 Target ExceededIn support of the decade of the artisan, the CETA has also ensured increased support to entities implementing CETA-funded apprenticeship projects through capacity building workshops by the Executive for stakeholders as well as JPMTs. This has resulted in more entities being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented.


29

Links To Strategic

Objectives




Planned Target

2018/2019



3.1.1 1 626 (Unfunded) 528 (Unfunded)

1 376 Target Exceeded The CETA has ensured support and resources to assist entities with registration of learners for unfunded projects.


490 (funded) 0 (funded) 81 Not measured, although the CETA had no target, the CETA achieved 81 learners entered due to project allocations from previous years and those with learners undergoing trade testing.


462 Not measured, although the CETA had no target, the CETA achieved 150 learners entered due to submissions mostly for trade testing as received from industry.

Artisan CompletedUnemployed learners per year

1 511 (funded) 1 583 (funded) 1 029

Target Not AchievedThe CETA has achieved the overall target for Artisan Completed, however when broken down between funded and unfunded the target is not met.


82 Target Not AchievedThe CETA has achieved the overall target for Artisan Completed, however when broken down between funded and unfunded the target is not met.


124 (funded) 0 (funded)584

Not measured, although the CETA had no target, the CETA has achieved 57 learners completed due to project allocations from previous years and learners reported as completed in the financial year under review.

60 (Unfunded) 0 (Unfunded) 182

Not measured, although the CETA had no target, the CETA has achieved 141 learners completed due to competent learners trained by industry and requests for certification submitted for learners through the CETA.

BursariesNumber of bursaries entered: Unemployed learners per year

759 627 (funded)

2 317 Target ExceededOver and above the bursary support to public Universities and entities in the construction sector, the CETA has extended the bursary support to public learners through the Thapelo Madibeng Bursary Scheme Launched in February, 2019.

Number of bursaries completed:Unemployed learners per year

94 100 (funded)

100Target Achieved

Number of internships entered:Unemployed learners per year

537 523 (funded)

743 Target ExceededIn the 2018/19 financial year, the CETA has advertised for discretionary grants for internships for implementation, which contributed to the achievement. This also includes projects with old allocations that were revived through motivated support by the CETA. The CETA has also ensured increased support to entities implementing CETA-funded bursary projects through capacity building workshops by the Executive for stakeholders.

30


Links To Strategic

Objectives




Planned Target

2018/2019



3.1.1 Graduate Development ProgrammesNumber of internships completed:Unemployed learners per year

82 262 (funded)

124 Target Not AchievedThis is due to the low number of interns completed in line with those that entered in the previous year/s.

In addition the lack of workplace availability has impacted on achieving the target.

Number of TVET Student/Graduate Placements entered per year

227 109 (funded)

373 Target ExceededThe CETA has provided increased support to public TVET Colleges implementing CETA-funded construction projects through capacity building workshops by the Executive for stakeholders as well as JPMTs. This has resulted in more TVET Colleges being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented.

Number of TVET Student/Graduate Placements completed per year

57 53 (funded) 68 Target ExceededThe CETA has provided increased support to public TVET Colleges implementing CETA-funded construction projects. This has resulted in more TVET Colleges being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented and completed.

Number of HET Students entered per year (P1, P2 / Learner placement in workplaces)

188 109 (funded)

437 Target ExceededThe CETA has provided increased support to Universities of Technology (UoT) implementing CETA-funded construction projects through capacity building workshops by the Executive for stakeholders as well as JPMTs. This has resulted in more UoT’s applying and being funded for Discretionary Grants.

Number of HET Students completed per year (P1, P2 / Learner placement in workplaces)

94 53 (funded) 69 Target ExceededThe CETA has ensured continued support to Universities of Technology and thus implementation of projects in line with the CETA requirements with learners entering and exiting programmes successfully.

Number of Candidacy programmes entered per year

332314 (funded)

452

Target ExceededThe CETA has provided increased support to entities implementing CETA-funded candidacy programme through capacity building workshops. This has resulted in more entities being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented. Candidacy is also a CETA flagship programme.

Number of Candidacy programmes completed per year

57 50 (funded) 51

Target ExceededIn line with the CETA transformation objective, the CETA has increased support to the funded candidacy entities. This has resulted in CETA-funded candidates being successfully registered as professionals with their respective professional councils and information submitted to the CETA in the year under review. Candidacy is also a CETA flagship programme.


31

3.2 Programme Performance Indicators and Annual Targets for MTEF 2018/19

SUB-PROGRAMME: PARTNERSHIPS

Purpose/Strategic Objective: Strengthened Collaboration and Partnerships for skills development in the construction sector.

NSDS III Linkage: Goal 4.3: Promoting the growth of Public TVET College system that is responsive to sector, local,

regional and national skills needs and priorities Partnerships.

Links To Strategic

Objectives




Planned Target

2018/2019



3.2.1 Supporting and Promoting the growth of Public TVET Colleges

Number of SETA/University partnerships funded by the CETA through the discretionary grants for construction sector programmes.

6 6 6Target Achieved

Number of SETA/TVET College partnerships supported and accredited with CETA to deliver and implement skills development programmes in the construction sector.

48 35 36

Target ExceededThe CETA overachieved as a result of increased engagement with TVET Colleges through various partnership models for implementation of skills development programmes.

Number of CETA Offices opened in TVET Colleges.

12 6 8

Target ExceededThe CETA overachieved as a result of increased engagement with TVET Colleges through various partnership models for implementation of skills development programmes.


SUB-PROGRAMME: DEVELOPMENT AND SUPPORT OF SMMEs, CO-OPs, NGOs, CBOs & NPOs

Purpose/ Strategic Objective: A Vibrant Civil Society Engagement in Skills Development within the construction sector.

NSDS III Link: Goal 4.6: Encouraging and supporting co-operatives, small enterprises, worker initiated, NGO and

community training initiatives;

Links To Strategic

ObjectivesPerformance Indicators



Planned Target

2018/2019

Actual Achieve-ment2018/2019


3.3.1 Encourage and support co-operatives, small enterprises, worker-initiated, NGO, and community training initiatives in the construction sector

Number of SMMEs in the construction sector supported with accreditation.

34 19 25 Target Exceeded

Target exceeded due to sustenance of the CETAs established SMME project through support with Discretionary Grants Funding.

32


Links To Strategic




Planned Target

2018/2019



3.3.1 Encourage and support co-operatives, small enterprises, worker-initiated, NGO, and community training initiatives in the construction sector

Number of capacity building workshops in Skills Development for Trade Union support.


Two trade unions in the construction sector are supported for skills development related interventions.


Partnership projects to provide training and development support to co-operatives are supported.


This is due to the CETAs continued support for development of co-operatives through skills development activities.

Number of NGOs supported with skills development interventions/programmes within the construction sector.


This is due to the CETAs continued efforts to support non-levy paying entities in ensuring skills development activities within the construction sector.


SUB-PROGRAMME: PARTNERSHIPS

Purpose/Strategic Objective: Strengthened Collaboration and Partnerships for skills development in the construction sector.

NSDS III Link: Goal 4.3: Promoting the growth of Public TVET College system that is responsive to sector, local, regional

and national skills needs and priorities Partnerships.

Links To Strategic

Objectives




Planned Target

2018/2019



3.4.1 Increasing public sector capacity for improved service delivery

Partnerships entered with public institutions to improve service delivery through skills development. 57 10 18

Target Exceeded

In line with the CETAs public sector support strategy, the CETA has allocated discretionary grant funding to 18 public institutions and state agencies for the implementation of construction related skills development projects.

Number of public sector projects in rural areas planned for delivery of skills development programmes in the construction sector.

234 15 38

Target Exceeded

In line with the CETAs priorities to address learners from rural areas, CETA has allocated discretionary grant funding for the implementation of construction related skills development projects.


33

Links To Strategic

Objectives




Planned Target

2018/2019



3.4.1 Increasing public sector capacity for improved service delivery

Establishment of a JPMT as part of Inter-SETA collaboration.


Conduct one workshop with each of the six councils within the built environment sector.



SUB-PROGRAMME: IMPLEMENTATION OF LEARNING PROGRAMMES

Purpose/Strategic Objective: A skilled and capable workforce in the construction sector.

NSDS III Link: Goal 4.2 - Increasing access to occupationally-directed programmes in the construction sector.

Links To Strategic




Planned Target

2018/2019


Deviation from Planned Target to Actu-al Achievement for 2018/2019

3.5.1 Facilitating and supporting employed and unemployed learners with Recognition of Prior Learning programmes

Number of Learners RPLed (assessed) through Recognition of Prior Learning.

1 371 1 266 2 051

Target Exceeded

The CETA has provided increased support to entities implementing projects under the qualifications of the CETA for certifications under RPL. This resulted in an increased understanding of the requirements for RPL certification amongst training providers which led to an increased number of learners being certificated by the CETA.


SUB-PROGRAMME: CAREER AND VOCATIONAL GUIDANCE

Purpose/ Strategic Objective: Increased knowledge and interest in the construction careers.

NSDS III Link: Goal 4.8: Building career and vocational guidance;

Links To Strategic




Planned Target

2018/2019



3.6.1 Building career and vocational guidance in the construction sector

Number of career guidance events.

30 19 30

Target Exceeded

The CETA has conducted and ensured participation at career guidance events for the promotion of qualifications and careers in the construction sector.

Number of career guidance booklets updated for the construction sector.


34


Link to Budget2017/2018 2018/2019


Budget R’000

Actual Expenditure

R’000


R’000

Budget R’000

Actual Expenditure

R’000


R’000Learning Programmes & Projects

519,899 329,776 190,123 467,432 680,338 -212,906

PROGRAMME 4: QUALITY ASSURANCE


4.1 NQF Provider Accreditations4.2 Qualifications review and Development4.3 Monitoring Evaluation

Goal: Implementation of quality assurance processes that will enhance and ensure quality provision of training.

4.1 Sub-Programme NQF PROVIDER ACCREDITATIONS Strategic Objective Accredited skills training in the construction sectorObjective statement To ensure the delivery of quality accredited training by skills development providers in the construction sector.

Baseline Database of accredited training providers.

Justification To ensure quality training within the construction sector.

Links QCTO; NQF Act; Skills Development Act.

NSDS II Link 4.2 Increasing access to occupationally-directed programmes.

4.3 Promoting the growth of a public FET college system that is responsive to sector, local, regional and national

skills needs and priorities.

4.2 Sub-Programme QUALIFICATIONS REVIEW AND DEVELOPMENT

Strategic Objective Qualifications development

Objective statement To develop qualifications that meets the skills needs of the industry.

Baseline Registered CETA qualifications.

Justification Qualifications that meets industry needs are registered and implemented.

Links QCTO; NQF Act; Sector Skills Plan.


4.3 Sub-Programme MONITORING & EVALUATION

Strategic Objective Increased and improved monitoring and evaluation of CETA programmes

Objective statement To ensure the quality of training provision within the construction sector.

Baseline CETA Quality Assurance Policy; CETA Monitoring and Evaluation Policy.

Justification To ensure efficiency and effectiveness of project implementation and training.

Links Government monitoring and evaluation policy framework; NSDS III.


4.5 Encouraging better use of workplace-based skills development.

Item 8. Monitoring and Evaluation.


35

4.1 Strategic Objective Annual Targets

Goal: Implementation of quality assurance processes that will enhance and ensure quality provision of training.

Strategic Objective

5 Year StrategicPlan Target



Planned Target

2018/2019



4.1 Accredited skills training in the construction sector

Number of accredited training providers.

- 300 511

Target ExceededThe CETA has ensured capacitation of training providers through capacity building sessions and experienced even more than expected in terms of attendance.

4.2 Qualifications development

Design, develop and register new occupational qualifications and curriculum.

13 6 13

Target ExceededThe CETA, through its partnership with FITA, has ensured the development of qualification to address the new transitional arrangements in line with the QCTO requirements.

4.3 Increased and improved monitoring and evaluation of CETA programmes

Coordinate site visits for effective monitoring of CETA programmes.

7 4 7 Target exceeded

4.2 Programme Performance Indicators and Annual Targets for MTEF 2018/19SUB-PROGRAMME: NQF PROVIDER ACCREDITATIONS

Purpose/Strategic Objective: Accredited skills training in the construction sector.

NSDS III Link:

4.2 Increasing access to occupationally-directed programmes.

4.3 Promoting the growth of a public TVET college system that is responsive to sector, local, regional and national skills

needs and priorities.

Links To Strategic




Planned Target

2018/2019



4.1 Accredited skills training in the construction sector

Number of accredited training providers.

- 300 511 Target Exceeded

The CETA has ensured ongoing support and capacitation of training providers through capacity building sessions and experienced even more than expected in terms of attendance.

Maintain a database of CETA accredited training providers.


Maintain a database of QCTO registered construction qualifications.


36


Links To Strategic




Planned Target

2018/2019



Number of accredited TVET Colleges with the CETA.

- 43 31

Target Not AchievedAlthough the CETA maintained a developmental approach to the accreditation of TVET Colleges, the lack of infrastructure and staff capacity remained a challenge. The CETA is addressing this through skills development centres and lecturer development.

Sub-Programme QUALIFICATIONS REVIEW AND DEVELOPMENT

Strategic Objective Qualifications development

Objective statement To develop qualifications that meets the skills needs of the industry.

Baseline Registered CETA qualifications.

Justification Qualifications that meets industry needs are registered and implemented.

Links QCTO; NQF Act; Sector Skills Plan.


Links To Strategic

Objectives




Planned Target

2018/2019



4.2 Qualifications development

Signed SLA with QCTO for the CETA to be the DQP.

3 1 8

Target Exceeded

The CETA has signed eight SLA’s with the QCTO for the development of qualifications.

Number of DQP Projects approved. 2 6 8

Target Exceeded

This is due to the CETA having signed SLA’s with the QCTO for the development of eight qualifications.

Number of registered learnerships maintained with the DHET.


4.3 Increased and improved monitoring and evaluation of CETA programmes

Monitoring and Evaluation Policy is reviewed and approved annually by the Accounting Authority.


External Moderation Visits Schedule for CETA programmes is compiled and approved.

7 4 7

Target ExceededThis is due to increased focus on monitoring of CETA funded projects by the organisation


37

Link to Budget2017/2018 2018/2019


Budget R’000

Actual Expenditure

R’000


R’000

Budget R’000

Actual Expenditure

R’000


R’000Quality Assurance 27,774 14,762 13,012 29,162 15,643 13,519

4. Revenue collection2017/2018 2018/2019

Sources of revenueBudget

R’000

Actual Amount Collected

R’000

(Over)/Under Collection R’000

Budget R’000

Actual Amount Collected

R’000

(Over)/Under Collection

R’000Admin Levy Income (10.5%) 82,601 76,655 5,946 89,386 81,739 7,647

Mandatory Grant Levy Income (20%) 171,905 145,055 26,850 151,976 154,505 -2,529

Discretionary Grant Levy Income (49.5%) 609,968 353,899 256,069 386,718 386,463 255

Fines, Penalties and Forfeits 32,490 21,274 11,216 34,114 20,389 13,725

In-Kind Contributions - 621 -621 - 1,304 -1,304

Other Income - 1,012 -1,012 - 48 -48

Interest Received 71,855 142,169 -70,314 75,663 150,424 -74,761

Total 968,819 740,685 737,858 794,872

5. DIVISIONAL REPORTS

5.1 Core Business ReportThe CETA’s Core Business Division has two distinct and

interlinked departments that enable it to fulfil its mandate of

facilitating and funding skills development in the construction

sector.

CETA Core Business Division performs the following functions:

• Conducts research and analysis of the labour market

within the construction sector including management of

research on skills supply and demand, being a trusted

advisor on skills planning within the sector;

• Undertakes skills planning in line with the Labour Market

Information Intelligence Programme (LMIP), Skills

Planning and Monitoring Framework, Goal 4.1 of the

NSDS III as extended and The Medium Term Strategic

Framework (MTSF) on the identification of medium to

long term skills shortages;

• Development, review and update of the Sector Skills

Plan (SSP) for credible mechanism for skills planning in

the construction sector;

• Facilitate submission of ATR-WSP for claiming of

mandatory grants from CETA by levy paying construction

entities;

• Develop the Strategic Plan and the Annual Performance

Plan (APP) and Service Level Agreement (SLA) of the CETA;

• Prepare and submit the quarterly progress reports on

the APP of the CETA;

• Coordinate the design, development and/or revision

of specified occupational standards and qualifications

and/or part qualifications according to the QCTO

procedure;

• Accredit providers for the qualifications or part

qualifications listed in the schedule in terms of criteria

determined by the QCTO;

• Register assessors to undertake assessment for

specified qualifications or part qualifications in terms of

criteria determined by the QCTO;

• Maintain a comprehensive learner information

management system;

• Upload learner data to the NLRD according to the NLRD

load specifications.

Research, Planning and ReportingThe Research, Planning and Reporting (RP&R) department is

responsible for conducting research; developing the Sector

Skills Plan (SSP) and career guides; analysis of workplace

skills plans (WSPs) and annual training reports (ATRs)

submitted by employers; and compiling quarterly monitoring

reports (QMR) that are submitted to the Department of

Higher Education and Training.

38


ResearchCETA has developed a strategic research framework

informed by the sector skills plan. It further reviews,

maintains and manages the research agenda. The CETA

has coordinated the following research projects in the year

under review:

• Conducting tracer studies (destination surveys) for

CETA funded learners as at the end of NSDS III period

in 2016.

• Conduct sectorial analysis and model labour market

skills using labour market information (LMI) and

produce list of occupations in high demand within the

construction sector.

• Develop models for skills forecasting and methodologies

to identify skills needs within the construction sector

covering:

• Economic state of the construction industry;

• Supply side research;

• Demand side research;

• Partnership development;

• Project development’

• And Progression of learners in the construction

sector.

Review and development of the 2018/19 sector skills planCETA engages and promotes current and future skills

needs, including the trends and developments on supply

and demand within the construction sector. In the year

under review, CETA reviewed and maintained skills-planning

mechanism framework consisting of skills supply; skills

demand; skills imbalances, and the context of the economy,

demography and labour force (within construction sector) for

consideration in developing policies on skills planning and

in actual strategic planning processes of CETA. The CETA

Sector Skills Plan (SSP) was updated in line with the labour

market intelligence framework (LMIF) and was approved by

the DHET during the 2018/19 financial year.

This SSP includes the introduction of a new Chapter Three

entitled, “The Occupational shortages and skills gaps” which

was previously referred to as “Extent of Skills Mismatch” and

it has the following sub-sections:

• Occupational shortages and skills gaps

• Extent and nature of supply

• PIVOTAL list

The SSP also contains a list of priority occupations and

qualifications and has included recommendations for priority

interventions for CETA.

The Workplace Skills Plan (WSP) and Annual Training Report (ATR) submission to CETAThe CETA Indicium Skills system was duly opened for SDFs

to commence the capturing process of the WSP on the 1st

of February, 2019, for the 2019/20 financial year. The annual

stakeholder capacity-building sessions were held throughout

the year commencing with the WSP in February and the

project processes and discretionary grants in October.

These sessions took place in all nine provinces.

WSP submissions status reportCETA conducted stakeholder engagement sessions and

support in 2019 with all participating stakeholders. The

results below were achieved by 30 April, 2019 in terms of

submission of applications for mandatory grants for the

2018/19 financial year:

Table 1Mandatory Grant Status

Large (>149)

Medium (50-149)

Small (1-49)

Grand Total

Created 4 20 58 82

Submitted 409 649 1 558 2 616

Grand Total 413 669 1 616 2 698

WSP submissions by organisational size

Table 2 WSP submissions per province

Region Created Submitted Grand Total

Eastern Cape 9 267 276

Free State 3 88 91

Gauteng 32 963 995

KwaZulu-Natal 12 460 472

Limpopo 2 47 49

Mpumalanga 3 100 103

North West 1 64 65

Northern Cape 3 41 44

Western Cape 12 541 553

Unallocated 5 45 49

Total 82 2 616 2 698

LEARNERSHIPS UNEMPLO

YED ENTERED


39

Skills Development Facilitator (SDF) registration statusCETA has capacitated Skills Development Facilitators

(SDFs) in the sector on the compilation and submission of

Workplace Skills Plans (WSPs) and Annual Training Reports

(ATRs). CETA’s WSP administrative phase requires that the

Skills Development Facilitators submitting WSPs are duly

appointed by the submitting entity and are approved and

registered with CETA on the Skills System.

Table 2 below is a statistical summary of SDFs registered

on the CETA system as at year-end for the compilation and

submission of the WSP-ATR:

Table 2

Status No of SDF’s

Approved 1 460

Pending 301

Rejected 919

Grand Total 2 680

Performance Information ReportingCETA produced validated quarterly performance reports as per DHET compliance calendar as well as annual performance report for the year under review. In line with the DHET analysis requirements, CETA achieved 31 of the 34 indicators that are measurable or have targets – this indicates that CETA achieved 91% of its annual targets by the end of the financial year.

Baseline comparison of 2017/18 and 2018/19 CETA performance: Learners entered and completedThis comparative analysis demonstrates that in 2017/18, 12 434 learners were registered and reported by CETA. In the 2018/19 financial year the total number of learners entered was 18 816. The percentage progress of learners between these two financial years entered is 34%. In terms of completions comparison, in the 2017/18 financial year a total of 10 353 learners completed CETA programmes whereas in 2018/19, the total completions was at 10 584, showing a percentage progress of 2% from the previous year. The overall learner enrolment and completions in 2018/19 was 22 787 and in the year under review it was 29 400, showing percentage progress of 22% compared to the previous year.

Graph 2 Learning Pathways Entered - 2017/18 vs 2018/19


YED ENTERED

BURSARY UNEMPLOYED ENTERED

INTERNSHIPS UNEMPLOYED ENTERED

SKILLS PROGRAMMES UNEMPLO

YED ENTERED

TOTAL A

RTISAN ENTERED

LEARNERSHIPS W

ORKERS ENTERED

SKILLS PROGRAMMES W

ORKERS ENTERED

CANDIDACY PROGRAMME ENTERED

TVET STUDENT PLACEMENT ENTERED

UNIVERSITY STUDENT PLACEMENT ENTERED

9000-

8000-

7000-

6000-

5000-

4000-

3000-

2000-

1000-

0-

3653

4565

652 759

187 53

7

2016

3341

4681

8330

329

64 262 473

392

332

162

227

100

188

2017/18 2018/19

40


Graph 3 Learning Pathway Completed - 2017/18 vs 2018/19

Learning Pathway and Quality Development (LPQD) CETA is accredited with the South African Qualifications

Authority (SAQA) as per ETQA Regulations, 1998 and under

quality assurance delegation from the Quality Council for

Trades and Occupations (QCTO) to perform Education

and Training Quality Assurance (ETQA) functions in the

construction sector until 31 March 2020 for construction

National Qualifications Framework (NQF) qualifications.

Pre-NQF construction skills development providers are

accredited by the QCTO. The LPQD unit has two functional

units handling the accreditation process; the Accreditation

Applications and Accreditation Approvals Unit. The unit has

made a number of notable achievements during the year

under review some of which are reflected hereunder:

Occupational Qualification DevelopmentThe QCTO has introduced a basic operational methodology

of assigning occupational qualifications, curriculum

design and development as well as quality assurance

thereof. This new methodology introduced new entities

called Development Quality Partners (DQP-coordinates

occupational qualification and curriculum design and

development) and Assessment Quality Partners (AQP-

performs the quality assurance function).

CETA Occupational Qualifications Development Status

Signed DQP SLA between CETA and QCTO In the year under review, the CETA and QCTO signed the

SLA to facilitate the registration of the following qualifications

on the Occupational Qualifications Framework (OQF):

Table 4Occupational Qualification

DQPIndustry Partner

Completed and submitted to QCTO

Civil Structures Construction Constructor

CETA SAFCEC curriculum; assessment specifications; and the qualification

Civil Road Construction Constructor


Civil Services Constructor


It is planned that the above qualifications will be

recommended by QCTO and registered by SAQA under

the NQF, in the 2018/19 financial year for implementation

within the construction industry. The qualifications are now

recommended by the QCTO for registration.


YED COMPLETED

BURSARY UNEMPLOYED COMPLE

TED

INTERNSHIPS UNEMPLOYED COMPLE

TED

SKILLS PROGRAMMES UNEMPLO

YED COMPLETED

TOTAL A

RTISAN COMPLETED

LEARNERSHIPS W

ORKERS COMPLETED

SKILLS PROGRAMMES W

ORKERS COMPLE

TED

CANDIDACY PROGRAMME COMPLETED

TVET STUDENT PLACEMENT COMPLE

TED

UNIVERSITY STUDENT PLACEMENT COMPLE

TED

RECOGNITION O

F PRIOR LE

ARNING COMPLETED

2017/18 2018/19

3500-

3000-

2500-

2000-

1500-

1000-

500-

0-

2503

3392

66 94 117

82

2351 27

12

914

1960

422

97

2654

668

35 57

1223 1371

46 57 22 94


41

Occupational qualifications awaiting registration on the Occupational Qualifications Sub-Framework

Table 5Historically Registered Qualification Occupational Qualification Developed 65409 NC: Building and Civil Construction L3

Civil Road Construction ConstructorCivil Services ConstructorCivil Structures Construction ConstructorQualification IDs will be available after registration

New qualification realignment project completed and submitted to the QCTO

Construction Plant Occupation under SAFCEC completed:Occupation and/or specialisation that the qualification(s) are related to:

Occupation / Specialisation

OFO Code Specialisation Qualifications affected

Status

Earthmoving Plant Operator (General)

2015-734201 Construction Plant Operator

National Certificate: Construction Plant Operator

Re-alignment process completed. The qualification documents will be submitted to the QCTO on Monday 20th May 2019

No.Project Company

Appointed QDF

Cluster OccupationQualification Title

Specialisations

1 Kuyakhula Development Initiatives (PTY) LTD

Ntokozo Lwandle

Cluster 1: Built Environment Professions

Construction Project Manager

National Diploma: Management Civil Engineering Processes

Construction Site Manager Property Development Manager Construction Project Director Building and Construction Manager Construction Manager

2 Kuyakhula Development Initiatives (PTY) LTD

Ntokozo Lwandle

Cluster 1: Built Environment Professions

Quantity Surveyor

Further Education and Training Certificate: Quantity Surveying

Building Economist Electrical Specifications Writer Plumbing Estimator Construction Economist

3 Chrio Jirah Academy CC

Juliet Trebo

Cluster 2: Building Sector

Fibrous Plasterer

National Certificate: Ceiling and Partioning Installation

Fibrous Plasterer Plasterboard Fixer/Stopper Dry Wall Plasterer Exterior Plasterer Ceiling Fixer

4 Chrio Jirah Academy CC

Cluster 2: Building Sector

Concreter National Certificate: Construction Concreting

Grouting/Short-creting Assistant Concrete Worker

5 NTIT Consulting

Onicca Mekwa

Cluster 3: Roads & Civil Construction

Steel Fixer National Certificate: Construction Steelwork

Metal Plate Blender Reinforcing Iron Worker Construction Steel Bender Concrete Reinforcing Steel Placer

6 NTIT Consulting

Onicca Mekwa

Cluster 3: Roads & Civil Construction

Metal Fabricator

National Diploma: Structural Steelwork Detailing

Brass Finisher Metal Fabricator-Welder Structural Steel Tradesperson Template Maker

42


No.Project Company

Appointed QDF

Cluster OccupationQualification Title

Specialisations

7 Institute for Local Government & Housing CC

Kedibone Matampi

Cluster 4: Materials Manufacturing

Materials Scientist

National Certificate: Construction Material Manufacturing

Ceramics Scientist Fibre Technologist Polymer Scientist

CETA Assessment Quality Partner (AQP) StatusIn the year under review, CETA has been nominated by

industry to become the AQP for the following occupational

construction qualifications and have submitted the AQP

application to the QCTO for endorsement and approval:

Table 6Occupational Qualification AQP Industry Partner

Civil Engineering: Structures, Roads and Services

CETA SAFCEC

Flooring Installer/Finisher CETA FITA

Construction Road Works CETA SANRAL

Historically registered NQF qualifications quality asssured by the CETASAQA has reregistered 58 CETA qualifications on the NQF,

including the transitional and teach out applicable periods.

Once new occupational qualifications are registered, the

historically registered NQF qualifications will be replaced

and phased out. The NQF qualifications re-alignment

process has begun for historically registered qualifications.

The LPQD unit has drafted an OFO-aligned qualification

framework to map these qualifications to OFO Code and

determine areas that need qualifications. This will inform

CETA regarding the number of DQP projects required to

develop replacement qualifications.

Below is an update on CETA on qualifications in the year under review.

Table 7 QUALIFICATIONS RE-REGISTERED TILL 2023 No. Qual/LP

ID (SAQA)Qual Title (SAQA) NQF

LevelCredits QAP Initial

Registration Date

Registration End Date

Re-Registered (Yes/No)

Qualification Status

1. 20486 National Certificate: Surveying

4 153 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed

2. 20487 National Certificate: Hydrographic Surveying


3. 20488 National Certificate: Photogrammetry Surveying


4. 20813 National Certificate: Construction Contracting

2 190 CETA 2018/07/01 2023/06/30 Yes In Development

5. 22991 National Certificate: Refractories Installation


6. 22992 National Certificate: Refractories Masonry


7. 23675 National Certificate: Management of Building Construction Processes


8. 23683 National Diploma: Management of Civil Engineering Construction Processes


9. 24133 National Certificate: Construction: Roadworks



43

No. Qual/LP ID (SAQA)

Qual Title (SAQA) NQF Level

Credits QAP Initial Registration

Date






11. 24194 National Certificate: Construction Material Manufacturing






14. 24273 National Certificate: Community House Building

2 124 CETA 2018/07/01 2023/06/30 Yes Community House Builder occupational qualification developed.

15. 24295 National Certificate: Timber Roof Erecting

3 120 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed.

16. 24296 National Certificate: Construction: Installation of Floor Coverings


17. 48636 National Diploma: Structural Steelwork Detailing


18. 48734 National Certificate: Architectural Technology


19. 48817 Further Education and Training Certification: Construction Materials Testing


20. 48961 National Certificate: Construction: Crane Operations


21. 49016 National Certificate: Construction: Concreting


22. 49017 National Certificate: Construction Materials Testing


23. 49022 National Certificate: Floor Covering Installation






25. 49063 National Certificate: Geographical Information Sciences


44





Date




26. 49080 National Certificate: Construction: Advanced Crane Operations


27. 49081 National Certificate: Construction: Advanced Plant Operations


28. 49410 National Certificate: Construction


29. 49411 General Education and Training Certificate: Construction


30. 49602 National Certificate: Construction: Geotechnical


31. 50022 National Certificate: General Draughting


32. 57162 National Certificate: Aluminium Fabrication and Installation


National Certificate: Ceiling and Partitioning Installation

3 129 CETA 2007/05/02 2018/06/30 Yes To be developed (application prepared).

33. 58247 National Certificate: Ceiling and Partitioning Installation


34. 58780 Further Education and Training Certificate: Quantity Surveying


35. 63589 National Diploma: Geographical Information Science


36. 65409 National Certificate: Building and Civil Construction


37. 65709 National Certificate: Construction: Steelwork


38. 65769 National Certificate: Glazing


39. 65789 National Certificate: Construction Plant Operations


40. 65879 Diploma: Construction Technology

6 240 CETA 2018/07/01 2023/06/30 No Occupational Qualification Developed

41. 65891 Further Education and Training Certificate: Construction: Plumbing



45




Date




42. 65929 National Certificate: Waterproofing


43. 65949 Further Education and Training Certificate: Supervision of Construction Processes


44. 65969 General Education and Training Certificate: Human Settlements Development


45. 65989 Further Education and Training Certificate: Human Settlements Development


46. 66071 Further Education and Training Certificate: Computer Aided Drawing Office Practice (CAD)


47. 66089 National Certificate: Human Settlements Development


48. 77063 National Certificate: Construction Health and Safety


49. 83391 National Certificate: Community Development


50. 65858 National Certificate: Hot Water System Installation


NB:

• 50 CETA HRQs are re-registered for another 5 year period

Table 8 QUALIFICATIONS NOT RE-REGISTEREDNo. Qual/LP



Registration Date


1. 65877 Further Education and Training Certificate: Construction: Timber Vocations

4 120 CETA 2009/01/27 2018/06/30

2. 65878 Further Education and Training Certificate: Construction: Trowel Vocations

4 120 CETA 2009/01/27 2018/06/30

3. 65892 Further Education and Training Certificate: Construction: Painting and Decorating

4 120 CETA 2009/01/27 2018/06/30

4. 65895 Diploma: Construction: Plumbing 6 240 CETA 2009/01/27 2018/06/30

5. 65896 Diploma: Construction: Painting and Decorating

6 240 CETA 2009/01/27 2018/06/30

6. 65897 Diploma: Construction: Trowel Vocations 6 240 CETA 2009/01/27 2018/06/30

46





Date


7. 65898 Diploma: Construction: Timber Vocations 6 240 CETA 2009/01/27 2018/06/30

8. 49053 National Certificate: Supervision of Construction Processes

4 176 CETA until Last Date for Achievement

2009/01/27 2018/06/30

Table 9 QUALIFICATIONS FOR RE-ALIGNMENTNo. Qual/LP


LevelCredits QAP Re-

Registration Date

Re-Registration

End Date


1. 23683 National Diploma: Management of Civil Engineering Construction Processes

5 271 CETA 2018/07/01 2023/06/30 In the Re-Alignment Process







5. 48636 National Diploma: Structural Steelwork Detailing


6. 48734 National Certificate: Architectural Technology

5 120 CETA 2018/07/01 2023/06/30 To be Re-Alignment

7. 48817 Further Education and Training Certification: Construction Materials Testing


8. 49016 National Certificate: Construction: Concreting






11. 49410 National Certificate: Construction 2 120 CETA 2018/07/01 2023/06/30 To be Re-Alignment

12. 49411 General Education and Training Certificate: Construction


13. 58247 National Certificate: Ceiling and Partitioning Installation

3 129 CETA 2018/07/01 2023/06/30 To be Re-Aligned

14. 58780 Further Education and Training Certificate: Quantity Surveying


15. 65709 National Certificate: Construction: Steelwork


16. 65949 Further Education and Training Certificate: Supervision of Construction Processes



47



Credits QAP Re-Registration

Date

Re-Registration

End Date


17. 65969 General Education and Training Certificate: Human Settlements Development


18. 65989 Further Education and Training Certificate: Human Settlements Development


19. 66071 Further Education and Training Certificate: Computer Aided Drawing Office Practice (CAD)


20. 66089 National Certificate: Human Settlements Development


21. 77063 National Certificate: Construction Health and Safety


22. 65858 National Certificate: Hot Water System Installation


Table 10 REPLACED QUALIFICATIONSNo. Qual/LP



Registration Date



1. 20486 National Certificate: Surveying

4 153 CETA 2001/10/10 2018/06/30 Replaced by new Occupational Qualification

2. 20487 National Certificate: Hydrographic Surveying


3. 20488 National Certificate: Photogrammetry Surveying


4. 22991 National Certificate: Refractories Installation


5. 22992 National Certificate: Refractories Masonry


6. 23675 National Certificate: Management of Building Construction Processes






9. 24273 National Certificate: Community House Building


10. 24295 National Certificate: Timber Roof Erecting


11. 24296 National Certificate: Construction: Installation of Floor Coverings


12. 48961 National Certificate: Construction: Crane Operations


48





Date





14. 49063 National Certificate: Geographical Information Sciences


15. 49080 National Certificate: Construction: Advanced Crane Operations


16. 49081 National Certificate: Construction: Advanced Plant Operations


17. 49602 National Certificate: Construction: Geotechnical


18. 50022 National Certificate: General Draughting


19. 57162 National Certificate: Aluminium Fabrication and Installation


20. 63589 National Diploma: Geographical Information Science


21. 65409 National Certificate: Building and Civil Construction


22. 65769 National Certificate: Glazing 2 138 CETA 2009/04/08 2018/06/30 Replaced by new Occupational Qualification

23. 65789 National Certificate: Construction Plant Operations


24. 65877 Further Education and Training Certificate: Construction: Timber Vocations


25. 65878 Further Education and Training Certificate: Construction: Trowel Vocations


26. 65879 Diploma: Construction Technology


27. 65891 Further Education and Training Certificate: Construction: Plumbing


28. 65892 Further Education and Training Certificate: Construction: Painting and Decorating


29. 65895 Diploma: Construction: Plumbing


30. 65896 Diploma: Construction: Painting and Decorating


31. 65897 Diploma: Construction: Trowel Vocations



49




Date



32. 65898 Diploma: Construction: Timber Vocations


33. 65929 National Certificate: Waterproofing


34. 83391 National Certificate: Community Development


Accreditation applications received and processed by CETAThe Accreditation Applications Unit ensures that upon receipt of an application, the necessary acknowledgements are

processed to the applicants. A total of 511 acknowledgements of receipt were communicated to applicants in the year under

review. Desktop evaluations were conducted on the submitted applications and the entities found compliant were scheduled

for an accreditation site audit visit verification.

Practitioner and Moderator Applications Status Report

Applications received Practitioners applications & registrations Accreditation site visitsNumber of accredited CETA SDPs to date

Applications: Assessors

Registered: Assessors

Applications: Moderators

Registered: Moderators

Number of scheduled visits

Approvals

Eastern Cape 12 15 6 2 2 23 6 33

Free State 8 8 3 4 3 18 9 29

Gauteng 131 153 100 31 19 154 76 178

Kwazulu Natal 41 60 52 13 6 53 27 66

Limpopo 48 42 16 6 3 65 34 74

Mpumalanga 25 34 17 5 3 44 28 64

North West 4 13 4 7 0 27 15 24

Northern Cape

6 2 1 1 0 7 4 9

Western Cape 16 21 17 5 0 15 9 34

TOTAL 291 348 216 73 36 406 208 511

5.2 Projects Division ReportThe core of the division is to ensure the implementation of

Discretionary Grants in order to achieve the Construction

Education and Training Authority (CETA)’s strategic priorities

and other special projects of national interest.

The division is compelled to meet the objectives of CETA in

terms of its strategic priority areas as per the Strategic Plan

as to:

• Support skills development of the youth and workers

into the construction sector.

• Create and promote greater opportunities for women in

the construction sector.

• Create and promote greater participation of people with

disabilities within the construction sector.

• Create and promote greater participation of rural and

township communities in the construction sector.

• Create and promote greater participation of military

veterans in the construction sector.

• Facilitate not only the training through skills development

but also create an enabling environment for creation of

small and medium enterprises in order to create jobs

and uplift employment and alleviate poverty.

The CETA’s Projects Division has the following departments which work towards the achievement of CETA priorities and objectives:

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Learner Contracting and Data Management• Contract Management

• Data/Information Management

Graduate Development• Bursaries

• Internships

• Candidacy

• Higher Education Institution (HEI/HET) Student

Placement

• Technical, Vocational, Education and Training (TVET)

Student Placement

Monitoring and Evaluation• Site Audits

• Workplace Approvals

• Inductions

• Project Monitoring

• External Moderation

• Certification

5.2.1 Performance informationThe Projects Division is responsible for the implementation

of CETA-funded projects and the reporting of the industry-

funded projects that are related to the construction sector.

The CETA identified projects to fund in line with its Sector

Skills Plan, Strategic Plan and Annual Performance Plan.

These skills development interventions include among

others the following: learnerships, apprenticeships, short

skills programmes, recognition of prior learning, bursaries,

candidacy programmes, internships, higher education

training (HET) graduate placement; TVETs graduate

placements, work integrated learning and lecturers support.

To this end, CETA had an audited commitment schedule of

R2.3 billion as at 31 March, 2019.

In the year under review, the CETA reported an achievement

of 40 377 learners reached through various programmes

and strategies. This achievement represents an overall

increase of 37% from the previous financial year. Out of

these learners 25 634 are learners who entered into various

CETA programmes and 14 743 are learners who completed

their programmes during the 2018/19 financial year.

Graph 5 below shows the number of learners who entered the system per learning pathway since 2016/17 up to the 2018/19

financial year.

Graph 5

10000-

9000-

8000-

7000-

6000-

5000-

4000-

3000-

2000-

1000-

0-

3982

Learnerships Artisans Short skillsprogramme

Candidacy Bursaries HETPlacements

TVETplacements

Internships

4629

6828

4681

8330

9524

2278

3814

4956

392

332 45

2 652 75

923

17

100 18

8 434

162 22

7 381

187 53

7 742

2016/17 2017/18 2018/19


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The total number of learners entered into the system has increased across all learning programmes in the financial year compared to that of 2017/18. The increase of learners entered into the system has been consistent since 2016/17, particulary the artisans that enrolled in this financial year. The increase has also been high compared to other years in internships and bursaries due to placement of interns

in China and the Thapelo Madibeng bursary scheme

application respectively.

The number of learners who completed the programme has

also increased since last financial year from 10 584 to 14 743

learners, representing an increase of 39%. This increase has

been possible as a result of Projects Division conducting

external moderation where it is due and the support from interns

who have contributed to the administrative work required to

print the certificates.

5.3 Corporate Services Division ReportCorporate Services is an integral part of the support

structures of the organisation. It is the axil on which the

various departments in the organisation rely to carry out their

various functions and roles. Without a strong-functioning

corporate services division to support the organisation to

carry out its mandate and mission, the organisation would

collapse.

The role of corporate services in the organisation is to

manage and oversee the following departments:

• Human Resources Management Department

• Stakeholder and Public Relationship Department

• Administration and Travel Unit

• Registry and Logistics Unit

• Information and Communication Technology Department

5.3.1 Stakeholder and Public Relationship Management Department

This Department continues to play a critical role in terms of

communication with stakeholders internally and externally of

CETA’s working environment.

The two main strategic tasks of the department is that of

communication and marketing of CETA programmes and

service delivery initiatives, this include amongst other things

receiving and or dissemination of information to all CETA

stakeholders as well as brand management.

During the 2018/2019 financial year, the department enjoyed continued support from CETA provincial nodes and was able to make significant strides in fulfilling its career guidance

mandate amongst other various support activities.

5.3.2 Registry and Logistics UnitThe Registry and Logistics Unit manages all logistical operations for the organisation. It is the registry centre for all document management processes, which is, incoming and outgoing processes. This unit has played a significant role in fleet management, mail management and archiving management within the organisation with the view of improving customer services and management of stakeholder documentation.

5.3.3 Administration and Travel UnitThe purpose of the Travel Unit is to give support to the core business of the organisation by internal travel coordination with the implementation of the travel policy guided by the National Treasury Travel Framework. In line with the above, CETA vigorously implements the cost containment measures as per the treasury regulations.

The unit further gives administrative support in terms of inventory management and facilities, ensuring management of refurbishments, renovations and office movements.

5.3.4 Information and Communication Technology (ICT) DepartmentCETA ICT Department has the responsibility to oversee the technology landscape, which is aimed at enabling a business to exploit opportunities to achieve its goals. The systems’ approach is in such a way that the service delivery is aligned with the overall organisation’s strategy which is cost effective, resilient, and maximises performance. The ICT Department oversees several key systems used to protect and facilitate the organisation’s intellectual property.

Technology is a dynamic and ever-evolutionary field, and in this regard ICT has been faced with exciting challenges to respond to; from security, workstations, to software, networks and so forth.

ICT deliverables during the year under review• Implementation of backup solution to protect all CETA

electronic information assets. The initiative was to respond and align to current and future CETA systems which run on multi-layered platforms such as virtual environment, storage area network fabric, telephony and wireless networks.

• Roll-out of wireless solution for all CETA branches. The project was successfully implemented, and its security enhanced through various encryption and authentication technologies. The wireless connectivity was extended to CETA guests/stakeholders on the dedicated channel for serving Internet browsing services.

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• Transitioning of Local Area Network and Voice over IP (VoIP) services from one service provider to another.

• Implementation of helpdesk solution, which was revolutionary as it replaced a tedious and manual system of reporting ICT related incidents. The solution has streamlined ICT operations, and made it possible to seamlessly gauge the services of ICT and respond to stakeholders requests.

• Upgrades for all Internet lines have been completed,

which fast track all ICT operations. Head office Internet

link was upgraded from a 5Mb fibre link to a 30Mb fibre

link. All branch offices internet links were upgraded from

an old technology based diginet links to 5Mb fibre links,

which allows collaboration between offices through

various online platforms.

• Move ICT infrastructure for branch offices that relocated

during the financial year. Temporary microwave links

were put in place for Internet and telephony connectivity,

while commission of permanent fibre was sought.

• Continuous review of ICT governance policies and

procedures to continue strengthening Systems of

Corporate Governance and compliance.

• Successfully deployed an ICT system management

solution for enhanced security, high-availability, rapid

deployments, and reporting.


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GOVERNANCE

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1.Introduction Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act, corporate governance with regard to public entities is applied through the precepts of the Public Finance Management Act (PFMA) and run in tandem with the principles contained in the King’s Report on Corporate Governance.

The Parliament, the Executive and the Accounting Authorities of the public entity are responsible for corporate governance.

CETA remains committed to assuring good corporate governance practices, which seek to continuously promote transparency and accountability to all of its stakeholders. This requires compliance with all the applicable regulations, standards and frameworks as issued by state institutions such as the Department of Higher Education and Training, the National Treasury and the Auditor General.

The necessary internal controls are constantly reviewed, updated and put in place with oversight provided by the relevant committee structures.

2. Portfolio CommitteesThe CETA had no physical engagements with the Portfolio

Committee during the 2018/19 financial year.

3. Executive AuthorityDuring the 2018/19 financial year, the CETA complied with timely submissions of the Sector Skills Plan, Strategic Plan, Annual Performance Plan, Service Level Agreement, Annual Report and Quarterly Reports to the relevant authorities. No non-compliance matters were raised by the authorities for the attention of the CETA.

4. The Accounting AuthorityThe CETA Accounting Authority serves as the uppermost governance structure in the organisation providing oversight to aid in the achievement of the set mandate.

The Accounting Authority monitors the performance of the CETA through the below sub-committees with clearly defined roles:

• Executive Committee

• Governance and Strategy Committee

• Finance Committee

• Audit and Risk Committee

• Core Business Committee

• Remuneration Committee

As part of the annual planning process, the Accounting

Authority held a strategic planning session with the CETA

Management team to deliberate on the strategic objectives

of the organisation. The result of this session was an updated

Strategic Plan and Annual Performance Plan for the financial

year 2019/20.

The Accounting Authority considered key policy priorities

that have guided the development of this Strategic Plan. The

AA is responsible in ensuring that the policy priorities as set

out in this Strategic Plan are in line with the national priorities

or guided by the Medium Term Strategic Framework (MTSF).

The role of the Accounting Authority is clearly defined in the

Constitution of the CETA wherein they must:

• Govern and manage the CETA in accordance with the

PFMA and any other applicable legislation;

• Ensure that the CETA achieves its objectives .

• Provide effective leadership and to ensure that the CETA

implements the goals of the NSDS and the Performance

Agreement with the Minister;

• Provide a strategic direction for the CETA;

• Liaise with stakeholders;

• Ensure that the CETA complies with the relevant statutory

requirements and the requirements of this constitution;

• Manage institutional risk;

• Monitor the performance of the CETA; and

• Ensure that its members and the members of the

committees established by it, comply with the Code of

Conduct.

4.1 Accounting Authority Governance CharterThe CETA submits the governance charter on quarterly

basis in accordance with DHET prescripts. This serves

to confirm the Accounting Authority’s compliance to the

set requirements by the Executive Authority in providing

oversight on the management of the organisation’s affairs.


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Composition of the Accounting Authority

Title Name Surname Constituency Date appointed Committee Representation

Mr Raymond CeleChairperson – Ministerial Appointment

01 April 2018 Executive Committee

Ms Vangile Manzini Employer – Government 01 April 2018 Core Business Committee

Ms Sibongile Nxumalo Employer - Government 01 April 2018Executive Committee &Finance Committee

Mr Thembinkosi Madikane Organised Employer 01 April 2018Core Business Committee &Remuneration Committee

Mr Webster Mfebe Organised Employer 01 April 2018Executive Committee &Core Business Committee

Mr Roy Mnisi Organised Employer 01 April 2018Core Business Committee &Governance and Strategy Committee

Mr Piet Matosa Organised Labour 01 April 2018Executive Committee;Core Business Committee &Finance Committee

Mr Sunday Mlangeni Organised Labour 01 April 2018Core Business Committee &Finance Committee

Mr Joseph Montisetse Organised Labour 01 April 2018Core Business Committee &Remuneration Committee

Ms Thembi Ndlovu Organised Labour 01 April 2018Executive Committee;Core Business Committee &Remuneration Committee

Ms Romeshni Govender Professional Body 01 April 2018 Core Business Committee &Governance and Strategy Committee

5. Risk ManagementThe Accounting Authority is conscious of the fact that

delivery against performance objectives requires the

careful identification and management of all strategic and

operational risks in line with the CETA’s vision, mission,

objectives and strategic plans.

The Accounting Authority is accountable for all fiduciary

duties of the organisation. In managing organisational risk,

the Audit and Risk Committee has been entrusted with the

responsibility to provide the oversight function thereof. The

Committee remains critical in providing an independent

oversight function at CETA on matters relating to internal

financial control, internal audits, risk management, reliability

and accuracy of financial reporting, financial policies, and

compliance with legal and regulatory provisions (e.g. PFMA,

Treasury Regulations etc.). An independent member, who is

not part of the CETA staff establishment nor the Accounting

Authority, chairs the Audit and Risk Committee, to ensure the

Committee remains autonomous and functional at all times.

The management of risks is therefore, integrated into our

strategy, planning, budgeting and operational processes

and is taken into account in the funding and reporting

processes on the basis of evaluation of the level of risk.

As the sub-committee of the Accounting Authority, the Audit

and Risk Committee reports and makes recommendations to

the Accounting Authority. The Accounting Authority retains

the responsibility for implementing such recommendations.

6. Internal Audit and Audit & Risk CommitteeThe Internal Audit function is responsible for contributing to

the achievement of the goals and objectives by:

• Assisting management in evaluating their processes

for identifying, assessing and managing the key

operational, financial and compliance risks of CETA;

• Assisting management in evaluating the effectiveness

of internal control systems, including compliance with

internal policies;

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• Recommending improvements in efficiency to the

internal control systems established by management;

• Keeping abreast of new developments affecting CETA’s

activities and in matters affecting internal audit work;

• Being responsive to CETAs changing needs, striving for

continuous improvement and monitoring integrity in the

performance of its activities.

The Audit and Risk Committee provided an oversight role

in respect of the operations of the CETA. Given below is the

summary of the activities, which the Committee performed in

achieving its objectives/functions:

• Reviewed Quarterly Financial Information, Management

Information and ICT Reports.

• Reviewed the Draft Annual Financial Statements and

Performance Information.

• Reviewed the performance of the Internal Audit function.

• Assured the Risk Management.

• Ensured compliance to requirements.

• Oversaw the implementation of effective internal

controls.

• Reviewed and made recommendations for approval

policies.

The tabled below discloses relevant information on the

audit committee members.

Title Name Surname Constituency No. of meetings attended

Mr Victor Nondabula Independent Member

03

Mr Andile Mahlalutye Independent Member

02

Ms Shaila Hari Independent Member

03

Ms Romeshni Govender AA Member 03

Mr Joseph Montisetse AA Member 03

7. Compliance with Laws and RegulationsThe Public Finance Management Act (PFMA) and the

Treasury Regulations require the Accounting Authority to

ensure that the institution has and maintains effective, efficient

and transparent systems of financial risk management

and internal controls. The implementation of controls and

information systems is essential to the effective discharge of

the management’s responsibilities.

The Accounting Authority continuously reviews current trends

and best practices in relation to corporate governance. As

part of the Accounting Authority’s plans to fulfil its obligations

to demonstrate greater accountability and ensuring higher

quality of service. The Audit and Risk Committee (ARC) has

been established in terms of Section 77 of the PFMA read

together with Chapter 9 of the Treasury Regulations and

Section 10 of the CETA Constitution.

8. Fraud And CorruptionThe Audit and Risk Committee has a responsibility to

review the fraud prevention policy and plan, as well as

the procedures for detecting fraud and whistle blowing.

Assurance is provided in ensuring that there are processes

in place where staff may in confidence, raise concerns

about possible impropriety in matters of financial reporting,

control or any other matters. On this note, recommendations

were made to ensure the review or development of a Fraud

Prevention Policy as well as a Whistleblowing Policy to inform

all stakeholders of the CETA, of the procedures to follow.

9. Minimising Conflict Of Interest(i). A person may not be appointed on the Accounting

Authority, unless the necessary disclosure has been

made that:

(a) such person, directly or indirectly, whether personally

or through his or her spouse, partner or associate,

has a direct or indirect financial interest in the CETA;

and

(b) such person or his or her spouse, partner or associate,

holds an office in or is employed by the CETA,

organisation or other bodies, whether corporate or

incorporate, which has a direct or indirect financial

interest of the nature contemplated in paragraph (a)

(ii). If at any stage during the course of any proceedings

before the Accounting Authority it appears that any

member of the Accounting Authority has or may have

an interest, which may cause such conflict of interest

to arise on his or her part:

(a) such member must forthwith fully disclose the nature

of his or her interest and leave the meeting so as to

enable the remaining members to discuss the matter

and determine whether such member is precluded

from participation in such meeting by reason of a

conflict of interest; and

(b) such disclosure and the decision taken by the


57

remaining members regarding such determination

must be recorded in the minutes of the meeting in

question.

(iii). If any member fails to disclose any interest required

by subsection (ii) or, subject to the provisions of that

subsection, if he or she is present at the venue where

a meeting of the Accounting Authority is held or in any

manner whatsoever participates in the proceedings

of the Accounting Authority, the relevant proceedings

of the Accounting Authority are null and void.

10. Code Of ConductIn order to ensure the proper execution of its mandate and

effective compliance with the applicable legislative and

policy framework, the Accounting Authority ensures that

the staff of the CETA and members of all committees and

chambers adhere to the following principles of Governance:

• Effectiveness and efficiency in the execution of

their specified mandates, which require clearly

formulated purpose statements, objectives, roles and

responsibilities;

• Accountability for meeting their specified mandates,

which requires effective accountability mechanisms,

proper management, control and the safeguarding of

finances and resources, as well as regular and accurate

performance reviews, assessments and reporting;

• Integrity and honesty in the management of finances

and resources, which require observing and promoting

high standards of ethical conduct, proper execution of

fiduciary duties, independence from vested interest and

avoiding undue influence and a conflict of interests;

• Transparency and openness, which require fair,

transparent and accessible rules, processes and

procedures; the consistent application of these rules,

processes and procedures; transparent and motivated

decision-making; and timely and accurate provision of

information to a higher authority, stakeholders and the

public;

• Participation in the development and implementation

of public policies, where appropriate, which requires

the active involvement of beneficiaries, stakeholders

and other affected groups in the formulation of policies

and programmes; promoting ownership of policies and

programmes; stakeholder commitment to their success;

and consultation with, and representation on institutional

structures; and

• The capacity and resources to execute their mandate,

which require appropriate selection and capacity

building, in order to ensure that members and staff have

the necessary skills, knowledge and experience.

11. Board SecretaryIt is incumbent upon the board secretary to ensure that

the contents of agendas and meetings are agreed with the

Chairperson. In addition, the Board Secretary must ensure

that:

• Agendas and documents are distributed timeously to

the AA or committee members and attendees;

• Minutes are taken and agreed by members of the AA or

committee;

• All necessary steps are to be taken to ensure that

meetings are held as scheduled;

• The AA adheres to the meeting procedures as reflected

in the CETA Constitution;

• All AA decisions and resolutions are properly recorded

to track and monitor their implementation and follow

through as resolved in the meeting;

• The AA functions effectively. This entails providing the

entire AA with detailed guidance as to the nature and

extent of their duties and responsibilities and, more

importantly, how such duties and responsibilities should

be properly discharged in the best interest of CETA;

• New members are properly inducted;

• Assist in developing mechanisms for providing

continuous education and training for all members in

order to improve and maintain the effectiveness of the

entire AA;

• Provide a central source of guidance and advice to the

AA as a whole on matters of business ethics and good

governance.

12. Social ResponsibilityOn the 18 July, 2018 the CETA participated in Mandela

Day activities and donated sanitary materials to a school in

Tembisa township.

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13. Audit and Risk Committee ReportWe are pleased to present our report for the financial year ended 31st March 2019. The Audit and Risk Committee is an independent statutory body appointed by the Accounting Authority. Further, duties are delegated to the Committee by the Accounting Authority and are in line with the approved CETA Constitution and the Committee Charter.

Audit and Risk Committee Responsibility The Committee reports that it has complied with its responsibilities arising from Section 38(10) (1) of the Public Finance Management Act (PFMA) and Treasury Regulations 3.1. The Committee also reports that it has adopted appropriate formal terms of reference as its Audit and Risk Committee Charter, has regulated its affairs in compliance with this charter and has discharged its responsibilities as contained therein.

Effectiveness of internal control systems The system of internal control applied by the CETA over financial systems and risk management is effective. We can report that:• The risk management process is in place and that

CETA’s major risks are properly managed• The internal control systems are effective• The Internal Auditors are operating objectively and

independently• Matters requiring management attention are being

addressed.

Management and Monthly/Quarterly Report The Committee is satisfied with the content and quality of monthly and quarterly reports prepared and submitted to National Treasury during the year under review as required by the PFMA.

Evaluation of annual financial statementsThe Committee has:• Reviewed and discussed the audited Annual Financial

Statements to be included in the Annual Report with the AGSA and Management;

• Reviewed Auditor-General of South Africa’s management report and management’s responses thereto;

• Reviewed changes in accounting policies and practices; • Reviewed the CETAs compliance with legal and

regulatory provisions; and • Reviewed the information on predetermined objectives

to be included in the annual report. The Committee was satisfied with the quality of the Annual Financial Statements prepared and presented by Management. The Committee concurs with the conclusions of the AGSA on the Annual Financial Statements and other legal and regulatory matters.

Internal Audit The Internal auditors provided the Committee and management with reasonable assurance as to whether the internal controls remain adequate, effective and appropriate. This is achieved by means of the risk management process, implementation of the internal audit plan, identification of corrective actions and recommended improvements to effective controls and processes.

The Three-year rolling and annual internal audit plans were tabled and approved by the Committee. The Committee is satisfied that the plans represented a clear alignment with key risks and a good balance across the different categories of audits. The internal audit work conducted during the year focused on Finance, Performance Information, Supply Chain Management, Project Management, Human Resources, Information and Communications Technology and Risk Management. The internal audit function provided status progress reports on a quarterly basis to the Committee. The progress reports provided status updates on the implementation of the audit plan, some audit findings and status updates on the implementation of recommendations.

Risk management We can report that the risk management process is receiving the required attention from management. To this end, management presented the strategic risk register to the Committee for consideration. Progress on the implementation of the strategic risk action plans and the tracking of some emerging risks are being monitored on a quarterly basis and presented to the Committee for consideration. Finally, several other risk documents were also presented to the Committee for review, and will be disseminated among employees to ensure that the culture of risk management is embedded at the CETA.

Auditor-General of South Africa The Committee met with the Auditor-General of South Africa and confirms that there were no unresolved issues between the AGSA and management that affect the audit opinion.

The Committee concurs with and accepts the AGSA’s audit report on the Annual Financial Statements, and is of the opinion that the audited Annual Financial Statements should be accepted and read together with the report of the Auditor-General of South Africa.

Mr Victor NondabulaChairperson of the Audit and Risk Committee

Construction Education and Training Authority (CETA)

31 July 2019


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HUMAN RESOURCE MANAGEMENT REPORT

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1. IntroductionThe CETA Human Resources Department (HR) provides

overall direction on human resource management issues and

administrative support functions related to the management

of employees for the CETA.

The Department endeavours to be a strategic partner to

the CETA by providing Human Resources programs that

attract, develop, retain, and engage a skilled and diverse

workforce, thereby positioning the CETA as an employer of

choice.

The Human Resources Department is responsible for the

following functions:

• Workforce planning, including recruitment and selection

and talent management

• Employee wellness

• Learning and development

• Employee relations management

• HR service delivery, including HR administration and

benefits administration

• Performance management

• Reward and recognition management

2. Human Resource Oversight Statistics

Bursaries

Profile

African Coloured Indian White Total

Male Female Male Female Male Female Male Female Male Female

Executive 1 2 0 0 0 0 0 0 1 2

Senior Manager 1 0 0 0 0 0 0 0 1 0

Manager 5 3 1 0 0 1 0 0 6 4

Specialist 2 6 0 0 0 0 0 0 2 6

Officer 4 4 0 0 0 0 0 0 4 4

Administrator 2 3 0 0 0 0 0 0 2 3

TOTAL 15 18 1 0 0 1 0 0 16 19

Staff Establishment

ProfileAfrican Indian White Coloured Total

Male Female Male Female Male Female Male Female Male FemaleExecutive 1 2 0 0 0 0 0 0 1 2

Senior Manager 2 0 0 0 0 0 0 0 2 0

Manager 5 3 0 1 0 0 1 1 6 5

Coordinator 5 4 0 0 0 0 0 0 5 4

Specialist 5 9 0 1 0 0 0 0 5 10

Officer 12 18 0 0 0 0 0 1 12 19

Administrator 9 14 0 0 0 1 1 2 10 17

Other 1 13 0 0 0 0 0 0 1 13

Temporary staff - Intern 18 42 0 0 0 0 0 1 18 43

TOTAL 58 105 0 2 0 1 2 5 60 113


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Appointments

Profile African Coloured Indian White Total


Senior Manager 1 0 0 0 0 0 0 0 1 0

Manager 0 0 0 1 0 0 0 0 0 1

Coordinator 4 2 0 0 0 0 0 0 4 2

Specialist 2 1 0 0 0 1 0 0 2 2

Officer 0 1 0 0 0 0 0 0 0 1

Administrator 1 2 0 0 0 0 0 0 1 2

General Assistant 0 2 0 0 0 0 0 0 0 2

Intern 18 40 0 1 0 0 0 0 18 41

TOTAL 26 48 0 2 0 1 0 0 26 51

Promotions

African Coloured Indian White Total

Profile Male Female Male Female Male Female Male Female Male Female

Senior Housekeeper 0 1 0 0 0 0 0 0 0 1

TOTAL 0 1 0 0 0 0 0 0 0 1

Terminations

Profile African Coloured Indian White Total


Executive 1 1 0 0 0 0 0 0 1 1

Specialist 0 1 0 0 0 0 0 0 0 1

Administrator 1 0 0 0 0 0 0 0 1 0

Intern 2 4 0 0 0 0 0 0 2 4

TOTAL 4 6 0 0 0 0 0 0 4 6

Disabled Staff

Male Female

Levels Current Target Current Target

Top Management

Senior Management

Professional qualified

Skilled

Semi-skilled 1 1

Unskilled 1

TOTAL 1 2

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Personnel cost by salary bandLevel Personnel Expenditure (R’000) % of personnel exp. to total

personnel cost (R’000)No. of employees Average personnel cost

per employee (R’000)Top Management 4,049 31% 3 1,350

Senior Management 1,914 22% 2 957

Professional qualified 32,941 22% 34 969

Skilled 17,009 12% 31 549

Semi-skilled 10,692 8% 29 369

Unskilled 2,881 5% 14 206

TOTAL 100% 113

Employment and vacanciesProgramme/activity/objective 2018/2019 Approved

Posts2018/2019

No. of Employees

2018/2019 Vacancies % of vacancies

Top Management 4 3 1 25%

Senior Management 3 2 1 33%

Professional qualified 59 33 27 41%

Skilled 93 30 64 72%

Semi-skilled 47 26 19 40%

Unskilled 20 14 6 30%

Interns 88 59 29 33%

TOTAL 314 167 147 46,88%

Employment changesProvide information on changes in employment over the financial year. Turnover rates provide an indication of trends in

employment profile of the public entity.

Salary Band Employment at beginning of period Appointments Terminations Employment at end of the period

Top Management 3 2 2 3

Senior Management 1 1 2

Professional qualified 33 1 1 33

Skilled 30 30

Semi-skilled 27 1 26

Unskilled 12 2 14

Interns 4 61 6 59

Total 110 67 10 167

Reasons for staff leavingReason Number % of total no. of staff leaving

Death 2 1.16%

Resignation 5 2.91%

Dismissal 1 0.58%

Retirement 0 0

Ill health 0 0

Expiry of contract 2 1.16%

Other 0 0

Total 10


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Labour Relations: Misconduct and Disciplinary ActionNature of disciplinary Action Number

Verbal Warning 9

Written Warning 7

Final Written warning 4

Dismissal 1

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65

FINANCIAL INFORMATION

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1. Report of the Auditor-General to Parliament on the Construction Education and Training Authority (CETA) Report on the audit of the financial statements

Opinion1. I have audited the financial statements of the Construction

Education and Training Authority set out on pages

69 to 108 which comprise the statement of financial

position as at 31 March 2019, the statement of financial

performance, statement of changes in net assets,

statement of cash flows and statement of comparison of

budget and actual amounts for the year then ended, as

well as the notes to the financial statements, including a

summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in

all material respects, the financial position of the public

entity as at 31 March 2019, and its financial performance

and cash flows for the year then ended in accordance

with the Standards of Generally Recognised Accounting

Practice (Standards of GRAP) and the requirements of

the Public Finance Management Act of South Africa, 1999

(Act No. 1 of 1999) (PFMA) and the Skills Development

Act of South Africa, 1998 (Act No. 97 of 1998) (SDA).

Basis for opinion3. I conducted my audit in accordance with the International

Standards on Auditing (ISAs). My responsibilities under

those standards are further described in the auditor-

general’s responsibilities for the audit of the financial

statements section of this auditor’s report.

4. I am independent of the entity in accordance with

sections 290 and 291 of the International Ethics

Standards Board for Accountants’ Code of ethics for

professional accountants (IESBA code), parts 1 and 3 of

the International Ethics Standards Board for Accountants’

International Code of Ethics for Professional Accountants

(including International Independence Standards)

and the ethical requirements that are relevant to my

audit in South Africa. I have fulfilled my other ethical

responsibilities in accordance with these requirements

and the IESBA code.

5. I believe that the audit evidence I have obtained is

sufficient and appropriate to provide a basis for my

opinion.

Emphasis of matter6. I draw attention to the matter below. My opinion is not

modified in respect of this matter.

Restatement of corresponding figures7. As disclosed in note 18 to the financial statements, the

corresponding figures for 31 March 2018 were restated

as a result of an error in the financial statements of the

public entity at, and for the year ended, 31 March 2019.

Responsibilities of the accounting authority for the financial statements8. The board of directors, which constitutes the accounting

authority, is responsible for the preparation and fair

presentation of the financial statements in accordance

with the Standards of GRAP and the requirements of the

PFMA and the SDA, and for such internal control as the

accounting authority determines is necessary to enable

the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

9. In preparing the financial statements, the accounting

authority is responsible for assessing the CETA’s ability to

continue as a going concern, disclosing, as applicable,

matters relating to going concern and using the going

concern basis of accounting unless the appropriate

governance structure either intends to liquidate the

public entity or to cease operations, or has no realistic

alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements10. My objectives are to obtain reasonable assurance about

whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and

to issue an auditor’s report that includes my opinion.

Reasonable assurance is a high level of assurance, but

is not a guarantee that an audit conducted in accordance

with the ISAs will always detect a material misstatement

when it exists. Misstatements can arise from fraud or

error and are considered material if, individually or

in aggregate, they could reasonably be expected to

influence the economic decisions of users taken on the

basis of these financial statements.

11. A further description of my responsibilities for the audit

of the financial statements is included in the annexure to

this auditor’s report.

Report on the audit of the annual performance reportIntroduction and scope12. In accordance with the Public Audit Act of South Africa,

2004 (Act No. 25 of 2004) (PAA) and the general

notice issued in terms thereof, I have a responsibility to


67

report material findings on the reported performance

information against predetermined objectives for selected

programmes presented in the annual performance

report. I performed procedures to identify findings but

not to gather evidence to express assurance.

13. My procedures address the reported performance

information, which must be based on the approved

performance planning documents of the public

entity. I have not evaluated the completeness and

appropriateness of the performance indicators/measures

included in the planning documents. My procedures also

did not extend to any disclosures or assertions relating

to planned performance strategies and information in

respect of future periods that may be included as part of

the reported performance information. Accordingly, my

findings do not extend to these matters.

14. I evaluated the usefulness and reliability of the reported

performance information in accordance with the criteria

developed from the performance management and

reporting framework, as defined in the general notice,

for the following selected programmes presented in the

annual performance report of the public entity for the

year ended 31 March 2019:

Programme Pages in the annual

performance report

Programme 3 – Learning

Programmes and Projects

25 – 34

15. I performed procedures to determine whether the

reported performance information was properly

presented and whether performance was consistent

with the approved performance planning documents.

I performed further procedures to determine whether

the indicators and related targets were measurable and

relevant, and assessed the reliability of the reported

performance information to determine whether it was

valid, accurate and complete.

16. I did not raise any material findings on the usefulness

and reliability of the reported performance information

for this programme:

• Programme 3 – learning programmes and projects

Other matter17. I draw attention to the matter below.

Achievement of planned targets18. Refer to the annual performance report on pages 18 to

37 for information on the achievement of planned targets

for the year and explanations provided for the under- or

overachievement of a number of targets.

Report on the audit of compliance with legislation

Introduction and scope19. In accordance with the PAA and the general notice

issued in terms thereof, I have a responsibility to report

material findings on the compliance of the public entity

with specific matters in key legislation. I performed

procedures to identify findings but not to gather evidence

to express assurance.

20. I did not raise material findings on compliance with the

specific matters in key legislation set out in the general

notice issued in terms of the PAA.

Other information21.The accounting authority is responsible for the other

information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report.

22. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

23. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

24. I did not receive the other information prior to the date of this auditor’s report. When I do receive and read this information, and if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.

Internal control deficiencies25. I considered internal control relevant to my audit of the

68


financial statements, reported performance information

and compliance with applicable legislation; however, my

objective was not to express any form of assurance on it.

There were no internal control deficiencies that resulted

in the findings on compliance with legislation.

Pretoria

31 July 2019

Annexure – Auditor-general’s responsibility for the audit1. As part of an audit in accordance with the ISAs, I exercise

professional judgement and maintain professional

scepticism throughout my audit of the financial

statements, and the procedures performed on reported

performance information for selected programmes and

on the public entity’s compliance with respect to the

selected subject matters.

Financial statements2. In addition to my responsibility for the audit of the financial

statements as described in this auditor’s report, I also:

• identify and assess the risks of material misstatement of

the financial statements whether due to fraud or error,

design and perform audit procedures responsive to

those risks, and obtain audit evidence that is sufficient

and appropriate to provide a basis for my opinion. The

risk of not detecting a material misstatement resulting

from fraud is higher than for one resulting from error,

as fraud may involve collusion, forgery, intentional

omissions, misrepresentations, or the override of

internal control

• obtain an understanding of internal control relevant

to the audit 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 public entity’s internal control

• evaluate the appropriateness of accounting policies

used and the reasonableness of accounting estimates

and related disclosures made by the board of directors,

which constitutes the accounting authority

• conclude on the appropriateness of the use of the going

concern basis of accounting by the board of directors,

which constitutes the accounting authority, in the

preparation of the financial statements. I also conclude,

based on the audit evidence obtained, whether a

material uncertainty exists related to events or conditions

that may cast significant doubt on the CETA’s ability to

continue as a going concern. If I conclude that a material

uncertainty exists, I am required to draw attention in my

auditor’s report to the related disclosures in the financial

statements about the material uncertainty or, if such

disclosures are inadequate, to modify the opinion on the

financial statements. My conclusions are based on the

information available to me at the date of this auditor’s

report. However, future events or conditions may cause

the public entity to cease continuing as a going concern

• evaluate the overall presentation, structure and content

of the financial statements, including the disclosures,

and whether the financial statements represent the

underlying transactions and events in a manner that

achieves fair presentation

Communication with those charged with governance3. I communicate with the accounting authority regarding,

among other matters, the planned scope and timing of

the audit and significant audit findings, including any

significant deficiencies in internal control that I identify

during my audit.

4. I also confirm to the accounting authority that I have

complied with relevant ethical requirements regarding

independence, and communicate all relationships and

other matters that may reasonably be thought to have

a bearing on my independence and, where applicable,

related safeguards.


69

REPORT ON THE FINANCIAL STATEMENTS

2. Annual Financial Statements

Contents

Statement of Financial Performance 70

Statement of Financial Position 71

Statement of Changes in Net Assets 72

Statement Cash Flows 73

Statement of Comparisons of Budget and Actual Amounts 74

Accounting policies 75

Notes to the Annual Financial Statements 83

Remuneration to Executive Management and Accounting Authority 100

70


STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2019

MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000Revenue

Revenue from non-exchange transactions Transfer revenue

Levies 2 627,636 575,609

Fines, Penalties and Forfeits 3 20,389 21,274

In-Kind Contributions - Facilities 21 1,304 621

Total revenue from non-exchange transactions 649,329 597,504

Revenue from exchange transactions

Other Income 4 48 1,012

Interest received 5 150,424 142,169

Total revenue from exchange transactions 150,472 143,181 Total revenue 799,801 740,685 Expenditure

Administration Expenses 6 -81,837 -74,236

Employer Grant Expenses 7 -89,323 -85,150

Discretionary Grant Expenses 7 -695,981 -344,538

Total expenditure -867,141 -503,924 Operating Surplus/(Deficit) -67,340 236,761 Surplus/(Deficit) for the year 1 -67,340 236,761


71

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000

Assets

Current Assets Cash and Cash equivalents 8 2,249,453 2,292,861

Receivables from non-exchange transactions 9.1 1,058 9,022

Receivables from exchange transactions 9.2 382 711

Consumables 10 12,482 1,340

2,263,376 2,303,935

Non-Current Assets

Property, Plant and Equipment 11 10,563 8,134

Intangible Assets 12 198 371

10,761 8,506

Total Assets 2,274,137 2,312,441

Liabilities Current Liabilities

Payables from non-exchange transactions 13.1 126,401 68,735

Payables from exchange transactions 13.2 8,865 11,466

NARYSEC Funds 14.1 - 725

Provisions 15 71,099 95,244

206,366 176,170 Total Liabilities 206,366 176,170 2,067,771 2,136,271

Funds and Reserves Administration reserve 10,761 8,506

Employer Grant reserve 506 352

Discretionary reserve 2,056,504 2,127,413

Total Net Assets 2,067,771 2,136,271

72

ANNUAL REPORT FOR 2018/2019 FINANCIAL YEARST

ATEM

ENT

OF

CH

ANG

ES IN

NET

ASS

ETS

FOR

TH

E YE

AR E

ND

ED 3

1 M

ARC

H 2

019

Adm

inis

tratio

n Em

ploy

er

Dis

cret

iona

ry

U

napp

ropr

iate

d

NO

TE

rese

rve

Gra

nt

rese

rveG

rant

re

serv

e To

tal r

eser

ves

surp

lus

R ‘0

00

R ‘0

00

R ‘0

00

R ‘0

00

R ‘0

00Ba

lanc

e at

01

April

201

7

10,0

58

621

1,88

8,83

1 1,

899,

509

-

Cha

nges

in n

et a

sset

sur

plus

for t

he y

ear

-

-

-

-

236,

761

Allo

catio

n of

una

ppro

pria

ted

surp

lus

1 3,

040

59

,905

17

3,81

6

236

,761

-

236,

761

Exce

ss re

serv

es tr

ansf

erre

d (to

)/fro

m

-4,

592

-6

0,17

4

64,7

66

Tota

l Cha

nges

-1,5

00

-265

24

2,58

3

240

,818

-

Bala

nce

at 3

1 M

arch

201

8 (R

esta

ted)

8,50

6

352

2,

127,

413

2,1

36,2

71

Adju

stm

ents

to o

peni

ng b

alan

ce

-Allo

catio

n to

ope

ning

bal

ance

-27

2

-

-887

-1,1

59

-

Bala

nce

at 0

1 Ap

ril 2

018

8,

234

35

2

2,12

6,52

6

2

,135

,112

-

Cha

nges

in n

et a

sset

sur

plus

for t

he y

ear

-

-

-

-

-6

7,34

0

Allo

catio

n of

una

ppro

pria

ted

surp

lus

1

3

,245

64

,691

-1

35,2

76

-67

,340

67

,340

Exce

ss re

serv

es tr

ansf

erre

d (to

)/fro

m

-7

18

-64,

537

65

,255

Tota

l Cha

nges

2,25

5

154

-7

0,90

8

-68

,499

-

Bala

nce

at 3

1 M

arch

201

9

10,7

61

506

2,

056,

504

2,0

67,7

71

Allo

catio

n to

ope

ning

bal

ance

, rel

ates

to a

djus

tmen

ts in

rese

rves

resu

lting

from

set

tlem

ents

of p

rior y

ear p

rovi

sion

s, b

ad d

ebts

etc

.


73

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2019

MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000

Cash flow from operating activities

Receipts Grants 646,554 595,182

Interest and Other Income 150,424 143,181

796,978 738,364

Payments Employee costs -115,888 -91,708

Payments to suppliers and stakeholders -716,931 -375,842

-832,819 -467,551

Net cash flow from operating activities 16 -35,841 270,813

Cash flow from investing activities Purchase of property, plant and equipment 11 -7,534 -2,701

Net cash flows from loss/sale of property, plant and equipment 63 12

Purchase of other intangible assets 12 -96 -468

Net cash flows from investing activities -7,567 -3,157 Cash flow from financing activities - - Net cash flow from financing activities - -

Net increase/(decrease) in cash and cash equivalents -43,408 267,656 Cash and cash equivalents at the beginning of the year 2,292,861 2,025,205

Cash and cash equivalents at the end of the year 8 2,249,453 2,292,861

74

ANNUAL REPORT FOR 2018/2019 FINANCIAL YEARST

ATEM

ENT

OF

CO

MPA

RIS

ON

OF

BUD

GET

AN

D A

CTU

AL A

MO

UN

TS F

OR

TH

E YE

AR E

ND

ED 3

1 M

ARC

H 2

019

Fina

l Bud

get a

s

Actu

al a

mou

nts

N

OTE

at

Mar

ch 2

019

as a

t Mar

ch 2

019

Diff

eren

ce

R

‘000

R

‘000

R

‘000

Stat

emen

t of F

inan

cial

Per

form

ance

Rev

enue

Rev

enue

from

exc

hang

e tra

nsac

tions

Oth

er In

com

e

-

48

48

Inte

rest

rece

ived

- C

PD

7

5,66

3

15

0,42

4

74,

761

Tota

l rev

enue

from

exc

hang

e tra

nsac

tions

75,

663

150,

472

Rev

enue

from

non

-exc

hang

e tra

nsac

tions

Tran

sfer

reve

nue

In-K

ind

Con

tribu

tions

- Fa

cilit

ies

-

1

,304

1,3

04

Levi

es

628

,081

627,

636

-4

45

Fine

s, P

enal

ties

and

Forf

eits

34,

212

20

,389

-1

3,82

3

Tota

l rev

enue

from

non

-exc

hang

e tra

nsac

tions

6

62,2

93

64

9,32

9

Tota

l Rev

enue

29

737

,956

799,

801

Expe

nditu

re

A

dmin

istra

tion

Expe

nses

29

-8

9,38

6

-8

1,83

7

7

,549

Empl

oyer

Gra

nt E

xpen

ses

29

-1

51,9

76

-8

9,32

3

62,

654

Dis

cret

iona

ry G

rant

Exp

ense

s 29

-496

,594

-

695,

981

199

,388

Tota

l exp

ense

s

-7

37,9

56

-86

7,14

1

Surp

lus/

(Defi

cit)

0

-67,

340


75

Accounting Policies

1. Presentation of Financial Statements

The Financial statements have been prepared in accordance

with the Standards of Generally Recognised Accounting

Practice (GRAP), issued by the Accounting Standards Board

in accordance with Section 91(1) of the Public Finance

Management Act (Act 1 of 1999).

These Financial statements have been prepared on an

accrual basis of accounting and are in accordance with

historical cost convention unless specified otherwise. They

are presented in South African Rand. Comparative figures

are disclosed.

In the absence of an issued and effective Standard of GRAP,

accounting policies for material transactions, events or

conditions were developed in accordance with paragraphs

8, 10 and 11 of GRAP 3 read with Directive 5. Assets,

liabilities, revenues and expenses were not offset, except

where offsetting is either required or permitted by a Standard

of GRAP.

A summary of the significant accounting policies, which

have been consistently applied in the preparation of these

Financial Statements, are disclosed below.

1.1 Going concern assumptionThese Financial statements have been prepared based on

the expectation that the CETA will continue to operate as a

going concern for at least the next 12 months.

2. Revenue from non-exchange transactions

2.1 Skills Development Levy Income The accounting policy for the recognition and measurement

of skills development levy income is based on the Skills

Development Act, Act No 97 of 1998, as amended and

the Skills Development Levies Act, Act No 9 of 1999, as

amended.

In terms of section 3(1) and 3(4) of the Skills Development

Levies Act, 1999 (Act No. 9 of 1999) as amended, registered

member companies of the CETA pay a skills development

levy of 1% of the total payroll cost to the South African

Revenue Services (SARS), who collect the levies on behalf

of the Department. Companies with an annual payroll cost

less than R500 000 are exempted in accordance with section

4(b) of the Levies Act as amended, effective 1 August 2005.

80% of Skills Development Levies are paid over to the CETA

(net of the 20% contribution to the National Skills Fund

(NSF)). The CETA was not in a position to verify that SARS

has collected all potential skills levy income.

Skills Development Levy (SDL) transfers are recognised on

an accrual basis when it is probable that future economic

benefits or service potential will flow to the CETA and these

benefits can be measured reliably. This occurs when the

Department makes an allocation to the CETA as required by

Section 8 of the Skills Development Levies Act, 1999 (Act No.

9 of 1999) as amended.

Revenue is adjusted for transfers between the SETAs due to

employers changing SETAs. Such adjustments are separately

disclosed as inter-SETA transfers. The amount of the inter-

SETA adjustment is calculated according to the most recent

Standard Operating Procedure issued by the Department.

Skills Development Levy (SDL) transfers are recognised on

an accrual basis when it is probable that future economic

benefits or service potential will owe the CETA and these

benefits can be measured reliably. This occurs when the

Department of Higher Education makes an allocation to the

CETA, as required by Section 8 of the Skills Development

Levies Act, 1999 (Act No. 9 of 1999) as amended.

2.2 Interest and penaltiesInterest and penalties are economic benefits or service

potential received or receivable by CETA, as determined

by legislation, as a consequence of the breach of laws or

regulations and is recognised on an accrual basis.

2.3 Conditional Grants and receiptsRevenue received from conditional grants, donations and

funding are recognised as revenue to the extent that the

CETA has complied with any of the conditions embodied

in the agreement. To the extent that the conditions have not

been met, a liability is recognised.

2.4 Funds allocated by the National Skills Fund for Special ProjectsFunds transferred by the National Skills Fund (NSF) are

accounted for in the financial statements of the CETA as a

liability until the related eligible special project expenses are

incurred. The liability is reduced by any project expenditure

incurred and recognised as revenue. Property, plant and

76


equipment acquired for NSF Special Projects are capitalised

in the financial statements of the CETA, as the CETA controls

such assets for the duration of the project. Such assets may

however only be disposed of in terms of agreement and

specific written instructions by the NSF.

2.5 Inter-SETA TransfersRevenue is adjusted for transfers of employers between SETAs

that arise due to incorrect allocation to a SETA on registration

for skills development levy or changes to their business that

result in a need to change SETAs. Such adjustments are

disclosed separately as inter-SETA transfers. The amount

of the inter-SETA transfers is calculated according to the

most recent Standard Operating Procedure as issued by the

Department of Higher Education and Training.

2.6 Discretionary grantsThe funding for discretionary grants and projects stems

from the 49.5% 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 CETA.

CETA 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 upon cut - off period. The grant

payable and the related expenditure are recognised when

the application has been approved, implementation has

taken place and the conditions have been met, creating an

obligation to pay. Up to a maximum of 7.5% of the allocated

discretionary grant amount shall be budgeted to administer

the project by the employer or training provider.

Discretionary grant support costs

The 7.5% limit shall not be applicable to the following:

• Consulting to support CETA strategic goals

• Expenditure incurred as a result of support to

conceptualisation, implementation and conclusion

• Launches

• Legal costs

• Salaries of core business staff

• Travel and accommodation

3.Revenue from exchange transactionsRevenue from exchange transactions is recognised when

it is probable that future economic benefits or service

potential will flow to the CETA and these benefits can be

measured reliably. Revenue is measured at the fair value of

the consideration received or receivable. The only exchange

revenue received by the CETA is the interest earned on the

investment when the conditions are met.

3.1 Investment incomeInterest income is accrued on a time proportion basis, taking

into account the principal outstanding and the effective

interest rate over the period to maturity.

4. Project expenditureProject 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 are specifically chargeable to CETA

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

the invoice is received and approved. 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.

At the end of the financial period any unspent or uncommitted

funds must be transferred to the National Skills Fund

Authority with an allowance of 5% of the uncommitted funds

that will be carried over to the next financial year, except

where a request to carry forward the uncommitted funds has

been lodged as per the Grant Regulations requirements.

The unspent funds are determined by taking the surplus

as stated in the Statement of Financial Performance for

the financial period under review less the commitments for

training of learners in programmes funded from discretionary

funds.

4.1 Mandatory grantsThe grants payable and the related expenditure are

recognised when the employer has submitted an application

for a grant in the prescribed form within the prescribed cut

off period as the payment then becomes probable. The grant

is equivalent of 20% of the total levies paid by the employer

during the corresponding financial period for the skills

implementation grant respectively.


77

4.2 Administrative expenditureThe funding for administrative expenditure is derived from

10.5% of the total levies paid by the employers. Administration

expenses consist of the operational expenditure incurred by

the CETA in delivering its mandate.

5. Property, plant and equipment RecognitionProperty, plant and equipment are tangible non-current

assets (including infrastructure assets) that are held for use

in the production or supply of goods or services, rental to

others, or for administrative purposes, and are expected to

be used during more than one period.

The cost of an item of property, plant and equipment is

recognised as an asset when it is probable that future

economic benefits or service potential associated with the

item will flow to the entity and the cost of the item can be

measured reliably.

Initial MeasurementProperty, plant and equipment is initially measured at

cost. The cost of an item of property, plant and equipment

is the purchase price and any other costs attributable to

bring the asset to the location and condition necessary for

it to be capable of operating in the manner intended by

management. Trade discounts and rebates are deducted in

arriving at the cost.

Property, plant and equipment which has a cost price less

than R 2 000 are expensed and not capitalised. Where an

asset is acquired through a non-exchange transaction, its

cost is its fair value as at date of acquisition. Where an item

of property, plant and equipment is acquired in exchange for

a non-monetary asset or monetary assets, or a combination

of monetary and non-monetary assets, the asset acquired

is initially measured at fair value (the cost). If the acquired

item’s fair value was not determinable, it’s deemed cost is the

carrying amount of the asset(s) given up.

The initial estimate of the costs of dismantling and removing

the item and restoring the site on which it is located is also

included in the cost of property, plant and equipment, where

the entity is obligated to incur such expenditure, and where

the obligation arises as a result of acquiring the asset or

using it for purposes other than the production of inventories.

Recognition of costs in the carrying amount of an item of

property, plant and equipment ceases when the item is in

the location and condition necessary for it to be capable of

operating in the manner intended by management. Major

spare parts of equipment which are expected to be used

for more than one period are included in property, plant and

equipment.

Subsequent measurementBuilding machinery, furniture and fixtures, motor vehicle,

office equipment, computer equipment and computer

network are carried at cost less accumulated depreciation

and any impairment losses except for land and buildings

which are carried at revalued amount being the fair value

at the date of revaluation less any subsequent accumulated

depreciation and subsequent accumulated impairment

losses.

RevaluationWhen an item of property, plant and equipment is revalued,

any accumulated depreciation at the date of the revaluation

is eliminated against the gross carrying amount of the asset

and the net amount restated to the revalued amount of the

asset. Any increase in an asset’s carrying amount, as a result

of a revaluation, is credited directly to a revaluation surplus.

The increase is recognised in surplus or deficit to the extent

that it reverses a revaluation decrease of the same asset

previously recognised in surplus or deficit.

Any decrease in an asset’s carrying amount, as a result of a

revaluation, is recognised in surplus or deficit in the current

period. The decrease is debited directly to a revaluation

surplus to the extent of any credit balance existing in the

revaluation surplus in respect of that asset. The revaluation

surplus in equity related to a specific item of property, plant

and equipment is transferred directly to retained earnings

when the asset is derecognised.

DepreciationProperty, plant and equipment are depreciated on the straight

line basis over their expected useful lives to their estimated

residual value. The depreciation of assets commences on

the date that the asset is available for use, even if it is not

yet in use.

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 amount is zero. Depreciation

of an asset ceases at the date that the asset is derecognised.

Any gains or losses arising from de-recognition of an asset

is included in profit or loss when the item is derecognised.

Useful lives are reviewed on an annual basis.

78


Depreciation ratesThe depreciation methods and average useful lives of

property, plant and equipment have been assessed as

follows:

Item Depreciation method

Average useful life

Furniture and fixtures Straight line 4-16 years

Motor vehicles Straight line 5 years

Office equipment Straight line 4-16 years

Computer equipment Straight line 3 -9 years

Computer software Straight line 2-9 years

Residual valuesResidual values of other assets are determined by

considering the second hand values of similar items which

are already at the age the asset is expected to be at the

end of its useful life. This would be applicable especially to

vehicles.

CETA reviews the residual values on an annual basis. The

review revealed that the residual values used in the current

or prior periods were still valid. No significant variances were

identified.

De-recognitionThe carrying amount of an item of property, plant and

equipment shall be derecognised on disposal (including

disposal through a non-exchange transaction) or when no

future economic benefits or service potential are expected

from its use or disposal. The gain or loss arising from de-

recognition of an item of property, plant and equipment

shall be included in surplus or deficit when the item is

derecognised.

6. Intangible assetsAn intangible asset is an identifiable non-monetary asset

without physical substance. An asset is identifiable if it

either separable, i.e. is capable of being separated or

divided from an entity and sold, transferred, licensed,

rented or exchanged, either individually or together with a

related contract, identifiable assets or liability, regardless of

whether the entity intends to do so or arises from binding

arrangements (including rights from contracts), regardless

of whether those rights are transferable or separable from

the CETA or from other rights and obligations.

RecognitionThe recognition of an item as an intangible asset requires an

entity to demonstrate that the item meets the definition of an

intangible asset and the recognition criteria. An intangible

asset is recognised when it is probable that the expected

future economic benefits or service potential that are

attributable to the asset will flow to the CETA; and the cost or

fair value of the asset can be measured reliably.

CETA assesses the probability of expected future economic

benefits or service potential using reasonable and

supportable assumptions that represent management’s best

estimate of the set of economic conditions that will exist over

the useful life of the asset.

Where an intangible asset is acquired through a non-

exchange transaction, its initial cost at the date of acquisition

is measured at its fair value as at that date.

Initial MeasurementAn intangible asset is initially measured at its cost and where

an intangible asset is acquired at no cost or for a nominal

cost, the cost is measured at its fair value as at the acquisition

date. Intangible assets which has a cost price less than R 2

000 are expensed and not capitalised.

Subsequent measurementIntangible assets are carried at cost less any accumulated

amortisation and any impairment losses.

AmortisationThe amortisation period and the amortisation method for

intangible assets are reviewed at each reporting date.

Internally generated goodwill is not recognised as an

intangible asset. Amortisation is provided to write down the

intangible assets, on a straight line basis, to their residual

values. The useful lives are detailed in the note for Property

Plant and Equipment.

DerecognitionIntangible assets are derecognised when no future

economic benefits or service potential are expected from its

use or disposal. The gain or loss is the difference between

the net disposal proceeds, if any, and the carrying amount.

It is recognised in surplus or deficit when the asset is

derecognised.


79

7. Related partiesMembers of the Accounting Authority and employees are

required to disclose their interest in any contracts that CETA

is entering into with an outside party. Inter-SETA transactions

and balances arise due to the movement of employers from

one SETA to another. Transactions with related parties are

supposed to occur under terms and conditions that are no

less favourable than those available under similar arm’s

length dealings.

8. In-Kind ContributionsIn-Kind contributions are recognised at fair value and are

equally recorded as revenue and expenditure for donated

use of services, facilities and other assets. Donated assets

are recorded as current or fixed assets.

9. Financial instrumentsFinancial instruments are broadly defined as those

contracts that results in a financial asset in one entity and a

financial liability or residual interest in another entity. A key

distinguishing factor between financial assets and financial

liabilities and other assets and liabilities, is that they are

settled in cash or by exchanging financial instruments rather

than through the provision of goods or services.

Financial assets and financial liabilities are initially recognised

at fair value. Where an entity subsequently measures

financial assets and financial liabilities at amortised cost or

cost, transactions costs are included in the cost of the asset

or liability.

Financial assets and financial liabilities that are non-

derivative instruments with fixed or determinable payments,

for example deposits with banks, receivables and payables,

are measured at amortised cost. At initial recognition, an

entity can however designate such an instrument to be

measured at fair value

An entity cannot offset financial assets and financial liabilities

in the statement of financial position unless a legal right of

set-off exists, and the parties intend to settle on a net basis.

GRAP 104 requires extensive disclosures on the significance

of financial instruments for an entity’s statement of financial

position and performance, as well as the nature and extent of

the risks that an entity is exposed to as a result of its financial

instruments. Some disclosures, for example the disclosure

of fair values for instruments measured at amortised cost

or cost and the preparation of a sensitivity analysis, are

encouraged rather than required.

The effective interest method is a method of calculating the

amortised cost of a financial asset or a Financial liability

(or group of financial assets or financial liabilities) and of

allocating the interest income or interest expense over the

relevant period. The effective interest rate is the rate that

exactly discounts estimated future cash payments or receipts

through the expected life of the financial instrument or, when

appropriate, a shorter period to the net carrying amount of

the financial asset or financial liability. There is a presumption

that the cash flows and the expected life of a group of similar

financial instruments can be estimated reliably. However, in

those rare cases when it is not possible to reliably estimate

the cash flows or the expected life of a financial instrument

(or group of financial instruments), the CETA shall use the

contractual cash flows over the full contractual term of the

financial instrument (or group of financial instruments).

A financial asset is cash, residual interest of another entity,

a contractual right to receive cash or another financial asset

from another entity exchange financial assets or financial

liabilities with another entity under conditions that are

potentially favourable to the CETA.

A financial liability is any liability that is a contractual obligation

to deliver cash or another financial asset to another entity

or exchange financial assets or financial liabilities under

conditions that are potentially unfavourable to the CETA.

ClassificationThe CETA has the following types of financial assets (classes

and category) as reflected on the face of the statement of

financial position or in the notes thereto:

Class Category

Receivables

from non-

exchange

transactions

Financial assets measured at initial

recognition at fair value, and are

subsequently measured at amortised cost

using the effective interest rate method.

Receivables

from

exchange

transactions

Financial assets measured at initial

recognition value, and are subsequently

measured at amortised cost using the

effective interest rate method.

Cash

and cash

equivalents

Financial assets which comprise of cash

on hand and demand deposits, and

other short-term highly liquid investments

that are readily convertible to a known

changes in value.

80


The CETA has the following types of financial liabilities

(classes and category) as reflected on the face of the

statement of financial position or in the notes thereto:

Class Category

Provisions Financial liabilities are initially

measured at fair value, and

are subsequently measured at

amortised cost.

Payables from

exchange

transactions

Financial liabilities are initially



amortised cost.

Payables from

non-exchange

transactions

Financial liabilities are initially



amortised cost.

10. OffsettingFinancial 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 set off

exists.

11. LeasesLeases 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 statement of financial

performance based on the straight-line method. 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. The CETA does not hold any

finance leases.

12. ConsumablesConsumables are recognised as an asset on the date of

acquisition and are measured at the cost on the acquisition

date. Consumables are valued at the lower of cost or net

replacement value. Consumables are recognised as an

asset if it is probable that future economic benefits or service

potential associated with the item will flow to the entity and

they can be measured reliably.

13. ReservesReserves are sub-classified in the Statement of financial

position 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, Act No 97 of 1998 as amended. Member employer

company levy payments are set aside in terms of the Skills

Development Act, Act No 97 of 1998, as amended and the

regulations issued in terms of the Act, for the purpose of:

2019

%

2018

%

Administration costs of the CETA 10.5 10.5

Discretionary Grant 49.5 49.5

Mandatory Grant 20 20

National Skills Fund 20 20

100 100

In addition, contributions received from public service

employers in the national or provincial spheres of government

may be used to pay for CETA administration costs.

Interest and penalties received from South African Revenue

Services as well as interest received on Investments are

utilised for discretionary grants and projects. Other income

received are utilised in accordance with the original source

of the income.

Surplus funds in the administration reserve and unallocated

funds in the employer grant reserve are moved to the

discretionary fund reserve. Reserves are created based on

the accrual basis of accounting.

Contributions from Public Service Split

Administration 1/3

Discretionary Grants 2/3

14. Employee benefits

Defined contribution plansThe CETA 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. Contributions are at a rate of 15% of pensionable

emoluments of which members contribute 7.5%. The CETA’s

contribution to the defined contribution plans are charged to

the Statement of Financial Performance in the year to which


81

they relate and there is no further liability for the CETA. The

CETA pays for the medical aid of the staff members and

there is no obligation to the CETA over and above medical

aid contributions.

15. Provisions, accruals and contingenciesProvisions are recognised when CETA has a present

obligation as a result of a past event and it is probable that

this will result in an outflow of economic benefits that can be

estimated reliably. Provisions are recognised when the CETA

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.

Long-term provisions are discounted to net present value.

15.1 Provision for levies exempt companiesExempt companies’ provision includes employers who

continued paying skills development levies even though

they are exempt in terms of Skills Development Act.

15.2 Provision for employee entitlementsThe 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 last

day of the financial year. Leave provision are included under

payables from exchange transactions in the statement of

financial position based on the current salary rates and latest

approved increases. Provision for bonus is also included.

16. Provisions for grants

16.1 MandatoryA provision is recognised for grant payments due once

the specific criteria set out in the regulations to the Skills

Development Act, 97 of 1998, as amended has been

complied with by member companies and it is probable that

the CETA 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.

16.2 DiscretionaryNo 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 commitment in the notes to the financial

statements.

17. Contingent assets and contingent liabilitiesA contingent liability is a possible obligation that arises from

past events, and whose existence will be confirmed only by

the occurrence or non-occurrence of one or more uncertain

future events not wholly in the control of the entity.

A contingent asset is a possible asset that arises from past

events, and whose existence will be confirmed only by the

occurrence or non-occurrence of one or more uncertain

future events not wholly in the control of the entity. Contingent

assets and contingent liabilities are not recognised.

18. Borrowing costsBorrowing costs are interest and other expenses incurred

by an entity in connection with the borrowing of funds.

Borrowing costs are recognised as an expense in the period

in which they are incurred.

19. Comparative figuresWhere necessary, comparative figures have been adjusted

to conform to changes in presentation in the current year.

20. Irregular expenditureIrregular expenditure means expenditure incurred in

contravention of, or not in accordance with, a requirement of

any applicable legislation, including:

• The PFMA,

• The Skills Development Act, Act No 97 of 1998 as

amended,

Where irregular expenditure was incurred in the previous

financial year and is only condoned in the following financial

year, the register and the disclosure note to the financial

statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identified during

the current financial year and which was not condoned

by the National Treasury or the relevant authority must be

recorded appropriately in the irregular expenditure register.

If liability for the irregular expenditure can be attributed to a

person, a debt account must be created if such a person is

liable in law.

Immediate steps must thereafter be taken to recover the

amount from the person concerned. If recovery is not

possible, the accounting officer or accounting authority may

write off the amount as debt impairment and disclose such

in the relevant note to the financial statements. The irregular

expenditure register must also be updated accordingly. If

82


the irregular expenditure has not been condoned and no

person is liable in law, the expenditure related thereto must

remain against the relevant programme/expenditure item, be

disclosed as such in the note to the financial statements and

updated accordingly in the irregular expenditure register.

All irregular expenditure are charged against income in the

period to which it relates and disclosed in the period it was

first discovered.

21. Fruitless and wasteful expenditureFruitless and wasteful expenditure means expenditure

that was made in vain and would have been avoided had

reasonable care been exercised.

Where fruitless and wasteful expenditure were incurred in

the previous financial year and are only condoned in the

following financial year, the register and the disclosure note

to the financial statements must be updated with the amount

condoned.

Fruitless and wasteful expenditure that were incurred and

identified during the current financial year and which were

not condoned by the National Treasury or the relevant

authority must be recorded appropriately in the fruitless and

wasteful expenditure register. If liability for the fruitless and

wasteful expenditure can be attributed to a person, a debt

account must be created if such a person is liable in law.

Immediate steps must thereafter be taken to recover the

amount from the person concerned. If recovery is not

possible, the accounting officer or accounting authority may

write off the amount as debt impairment and disclose such

in the relevant note to the financial statements. The fruitless

and wasteful expenditure register must also be updated

accordingly. If the fruitless and wasteful expenditure has

not been condoned and no person is liable in law, the

expenditure related thereto must remain against the relevant

programme/expenditure item, be disclosed as such in the

note to the financial statements and updated accordingly in

the fruitless and wasteful expenditure register.

All fruitless and wasteful expenditure is charged against

income in the period to which it relates and disclosed in the

period it was first discovered.

22. TaxationNo provision has been made for taxation, as CETA is exempt

from income tax In terms of Section 10 of the Income Tax Act,

(Act 58 of 1962).

23.Value Added Taxation (VAT)The Revenue Laws Amendment Act, (Act No.45 of 2003)

commenced on 22 December 2003. Previously the definition

of enterprise placed Sectorial Education and Training

Authorities (SETA) in Schedule 3A within the scope of VAT.

The Amendment Act, however has amended this definition

of enterprise and effectively places the public entity outside

the scope of VAT; effective 1 April 2005.

24.Subsequent eventsSubsequent events are all events that occur between the

reporting date and the date on which the financial statements

are authorised for tabling in parliament. Adjusting events are

all the events that confirm the financial performance and

position of the SETA at yearend and if material the financial

statements are adjusted accordingly.

25. ErrorsMaterial prior period errors are corrected retrospectively in

the first set of financial statements authorised for issue after

their discovery by:

• (a) Restating the comparative amounts for the prior

period(s) presented in which the error occurred; or

• (b) If the error occurred before the earliest prior period

presented, restating the opening balances of assets,

liabilities and net assets for the earliest prior period

presented.

26.BudgetThe approved budget covers the fiscal period from 1 April to

31 March of the financial year. The financial statements and

the budget are on the same basis of accounting therefore

a comparison with the budgeted amounts for the reporting

period have been included in the Statement of comparison

of budget and actual amounts. There are no entity or timing

differences on the budget to actual information.


83

NO

TES

TO T

HE

FIN

ANC

IAL

STAT

EMEN

TS F

OR

TH

E YE

AR E

ND

ED 3

1 M

ARC

H 2

019

Empl

oyer

gran

t D

iscr

etio

nary

1

Allo

catio

n of

una

ppro

pria

ted

surp

lus

2018

20

19

Adm

inis

tratio

n re

serv

e gr

ant r

eser

ve

Tota

l per

To

tal p

er

St

atem

ent o

f St

atem

ent o

f

Fi

nanc

ial

Fina

ncia

l A

dmin

istra

tion

Man

dato

ry

Dis

cret

iona

ry

Pe

rfor

man

ce

Perf

orm

ance

re

serv

e

skill

s gr

ant

gran

ts

R

‘000

R

‘000

R

‘000

R

‘000

R

‘000

Rev

enue

Skill

s de

velo

pmen

t lev

y: in

com

e

Adm

in le

vy in

com

e (1

0.5%

)

7

6,65

5

83,

778

83

,778

-

-

Gra

nt le

vy in

com

e (6

9.5%

)

498

,954

543

,858

-

154,

013

389

,844

Skill

s de

velo

pmen

t lev

y: p

enal

ties

and

inte

rest

2

1,27

4

20,

389

-

-

20,

389

Inte

rest

rece

ived

142

,169

150

,424

-

-

1

50,4

24

In-K

ind

Con

tribu

tions

- Fa

cilit

ies

621

1,3

04

1,3

04

-

-

Oth

er in

com

e

1,0

12

4

8

-

-

48

Tota

l

740

,685

799

,801

85

,082

15

4,01

3

5

60,7

05

Expe

nses

A

dmin

istra

tion

expe

nses

-7

4,23

6

-81,

837

-81,

837

-

-

Empl

oyer

Gra

nt E

xpen

ses

-85,

150

-8

9,32

3

-

-8

9,32

3

-

Dis

cret

iona

ry G

rant

Exp

ense

s

-344

,538

-695

,981

-

-

-6

95,9

81

Tota

l

-503

,924

-867

,141

-81,

837

-8

9,32

3

-6

95,9

81

236

,761

-6

7,34

0

3,2

45

64

,691

-135

,276

84


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019


2 Levies Levy income: Administration Levies in cash 84,060 76,862

Levies received from SARS 81,739 74,599

Government levies received 2,299 1,925

Inter-seta transfers in 23 338

Levies provision -282 -207

83,778 76,655

Levy income: Employer Grants Levies in cash 154,551 144,120


Inter-seta transfers in 45 677

Levies provision -537 935

154,013 145,055

Levy income: Discretionary Grants Levies in cash 391,174 356,042


Government levies received 4,598 3,850

Inter-seta transfers in 113 1,692

Levies provision -1,330 -2,143

389,844 353,899 Total 627,636 575,609

3 Fines, Penalties and Forfeits Skills Development Levy: Interest 9,719 9,466

Skills Development Levy: Penalties 10,670 11,808

20,389 21,274

4 Other Income Other income comprises of:

Income from Recoveries by Attorneys - 952

Profit on Write-Off of Asset 48 60

48 1,012

5 Interest received - CPD Corporation for Public Deposits (CPD) 150,424 142,169

150,424 142,169


85


MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘0006 Administration Expenses 6.1 Employee cost

Basic Salaries 19,006 13,963

Net Bonuses 4,239 6,094

PAYE 12,377 10,088

UIF 149 135

Pension 4,551 3,506

Medical Aid 3,631 2,957

Bond Subsidy 555 429

Other 1,778 440

46,286 37,614 Defined Contribution Plan The CETA’s contribution to the defined contribution plan are charged to the Statement of Financial Performance in the year

to which they relate and there is no further liability for the CETA.

Fringe Benefits In the new financial year, the CETA introduced new fringe benefits for its employees namely the: mobility allowance,

education allowance and employer pension contribution.

Other

Included in other employee costs are: Garnishee orders, Leave pay, Compensation fund, employee wellness, union fees,

recruitment fees, bursaries etc.

Staff Movement The CETA appointed about 60 interns in the current financial year and salaries of permanent employees were adjusted

irregularly, both resulting in the increase of employment costs.

6.2 Depreciation and amortisation Depreciation 5,015 4,362

Amortisation 270 247

5,285 4,609

6.3 Operating Expenses QCTO 4,240 4,763

Board and Board Committees 4,572 2,442

Travel, Subsistence and Accommodation 668 645

Communication, PR and Marketing 3,037 7,910

Audit Related Costs 3,458 3,034

Consulting and Outsourcing 6 316

Cost of Occupancy 4,205 3,782

Legal Costs 1,859 3,326

In-Kind Contributions - Facilities 21 1,304 621

Other Operational Expenses 6,918 5,174

30,266 32,013

86


6.3 Operating Expenses (cont....)Other

Included in other operation expenses are: Repairs & Maintenance, Small Assets, Cleaning, Stationery, Security, Insurance,

Refreshments, printing, Archiving expenses etc. These expenditures increased in the current financial year due to the

increase in staff complement.

Total 81,837 74,236

7 Employer Grant and Project Expenses Mandatory Grants 89,323 85,150

- Expensed 89,426 80,039

- Movement in provision -103 5,111

Discretionary Grants 695,981 344,538

- Core expenditure 560,069 229,005

- Admin expenditure 135,913 115,533

- Employee cost 69,781 54,222

- Project Administration costs 66,132 61,311

785,304 429,688 8 Cash and Cash equivalents Cash on hand 2 2

Bank balance - Standard Bank 81,282 275,115

Bank balance - Corporation for Public Deposits 2,168,169 2,017,744

2,249,453 2,292,861 9 Receivables 9.1 Receivables from non-exchange transactions

SARS Employer receivables - current year 20 14

SARS Employer receivables - prior years 8,208 7,996

Provision for bad debts -7,170 -1,992

Project debtors - 3,004

1,058 9,022

In the current financial year, management performed a review on movements in receivables resulting from SARS

adjustments, in line with CETA policy and section 190(1)(b) of the Tax Administration Act. Most of the debtors older than five

years, had not movement in the current financial year, this resulted in the increased provision for bad debts.

9.2 Receivables from exchange transactions 9.2.1 Sundry debtors 260 546

Bad debts - -96

260 450

9.2.2 Staff debtors 88 255

9.2.3 Prepaid expenses 35 6

Total Receivables from exchange transactions 382 711

Debtors relate to cases successfully concluded in favour of the CETA in the prior year and other opening balances, have

been written-off due to a reassessment of their recoverability.


87

10 Consumables Opening balance 1,340 296

Movement 11,142 1,044

Closing balance 12,482 1,340

Included in consumables for prior year, is the restated amount relating to a prior year error. The detail of the error is in note

18.a.

The consumables balance has increased significantly due to promotional material purchased during the year, that was not

fully distributed by the end of the year.

88

ANNUAL REPORT FOR 2018/2019 FINANCIAL YEARN

OTE

S TO

TH

E FI

NAN

CIA

L ST

ATEM

ENTS

FO

R T

HE

YEAR

EN

DED

31

MAR

CH

201

9

11

Prop

erty,

Pla

nt a

nd E

quip

men

t

20

19

2018

Acc

umul

ated

A

ccum

ulat

ed

depr

ecia

tion

depr

ecia

tion

and

Car

ryin

g

and

Car

ryin

g

C

ost

impa

irmen

t am

ount

C

ost

impa

irmen

t am

ount

Furn

iture

and

fitti

ngs

4,2

05

-2

,824

1,

382

3,82

6

-1,

998

1,8

28

Mot

or v

ehic

les

9,6

77

-4

,933

4,

744

5,40

1

-3,

567

1,8

34

Offi

ce e

quip

men

t

4

,728

-3,3

53

1,37

5

3,

865

-

2,61

6

1

,249

Com

pute

r equ

ipm

ent

8,8

59

-5

,797

3,

062

7,05

0

-3,

827

3,2

23

Tota

l

27,

469

-1

6,90

6

10

,563

2

0,14

2

-12,

008

8,1

34

Rec

onci

liatio

n of

Pro

perty

, Pla

nt a

nd E

quip

men

t - 2

019

Ope

ning

bal

ance

A

dditi

ons

Dis

posa

ls

Writ

e-of

f D

epre

ciat

ion

Tota

l

Furn

iture

and

fitti

ngs

1

,828

379

0

-

-82

5

1

,382

Mot

or v

ehic

les

1

,834

4,

276

-0

-

-

1,36

6

4

,744

Offi

ce e

quip

men

t

1,2

49

90

1

0

-

16

-759

1,3

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to u

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MM

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s w

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the

prev

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ncia

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lapt

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are

incl

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in a

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less

dep

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89

12 In

tang

ible

Ass

ets

2019

20

18

Acc

umul

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A

ccum

ulat

ed

amor

tisat

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amor

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and

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2

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19

8

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-

1,80

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371

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2

,271

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74

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bal

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been

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.

90


MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘00013 Payables 13.1Payables from non-exchange transactions Levy creditors 21,107 14,952

SARS payables 1,167 180

Skills development mandatory grants 6,411 6,749

Trade payables - Projects 16,846 19,968

NSF Lay-off scheme 37 37

Accrued expenses - Projects 80,832 26,849

126,401 68,735

13.2 Payables from exchange transactions Trade payables - Administration 4,026 6,267

Accrued expenses - Administration 618 1,612

Lease liability 357 562

Leave Pay 19 2,677 1,904

Other creditors 1,186 1,120

8,865 11,466

The increase in levy creditors was due to construction companies submitting Work Skills Programmes (WSPs) for the first

time, who did not have banking details.

The significant increase in project accruals, was due to the increased efficiency of the project implementation and invoicing

units, which resulted in high submissions of invoices at year end.

14 Government Grants 14.1 NARYSEC Funds

Opening balance 725 -

Amount received/receivable - 1,001

Amount paid/payable -725 -277

- 725

National Rural Youth Service Corps (NARYSEC) Funds is made up of external funds received for the payment of RPL

programmes falling within the CETA’s scope.

14.2 UIF Funds

The Unemployment Insurance Fund (UIF) a commitment amount of R 71 595 000.00 for the periods up to 31 March 2020.

The funds are aimed at funding training programmes falling within and outside the CETA’s scope. The amount will be

recognized as income once prescribed conditions of the government grant are met.


91


MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000 15 Provisions 15.1 Employer refund Opening balance 20,176 18,761

transfers to discretionary grants -3,600 -3,437

Current year 4,325 3,842

Change in provision 1,425 1,010


The provision for employer refund R22 326’ (2017/18: R20 176’) relates to levies incorrectly contributed by employers. Paid

by SARS/DHET to the CETA despite being exempted from contributing the Skills Development Levy due to a legislation

which came into effect on 1 August 2005. There has since been a Skills Development Circular no.09/2013 which states that

SETAs should provide for no longer than five years as stipulated in terms of section 190(4) of the Tax Administration Act.

15.2 Other Mandatory Grant provisions Opening balance 7,958 3,166

Change in provision -5,712 4,792


15.3 Administration provisions Opening balance 2,607 707

Change in provision -1,934 1,900

Closing balance 673 2,607

The decrease in administration provisions, was due to the rapid settlements of invoices raised.

15.4 Discretionary grants provisions Opening balance 64,503 67,237

Utilised -18,877 -19,011

Change in provision 229 16,277


Total 71,099 95,244

92



16 Cash generated from operations Surplus/(Deficit) -67,340 236,761

Adjusted for: Depreciation and amortisation 5,285 4,609

Profit on write-off of asset 27 48

Adjustment to Opening Balances -1,159 4,057

Changes in working capital: Consumables -11,142 -1,044

Receivables from exchange transactions 329 1,981

Receivables from non-exchange transactions 7,963 -2,589

Movement in provisions -24,145 5,749

NARYSEC Funds -725 725

Payables from exchange transactions -2,601 -29,221

Payables from non-exchange transactions 57,666 49,738

-35,841 270,813


93

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95

The operating lease commitments have been straight lined over the period of the lease to take into account any escalation

clauses contained therein. The operating lease relates to business premises used for office accommodation for the Head

Office, KZN and Western Cape provinces.



17.3 Administration Commitments

Company Name Business Connexion - 124

Busicor South Africa 535 -

Casper Combrink Elecronics T/A Security Integrated Systems 156 312

Clefele Holdings - 16

Cornastone Enterprise Systems (Pty)Ltd 2,836 1,464

Data Proof Communications 1,636 -

EOH Mthombo - 275

Fidelity Security Services 1,707 42

First Hope Group of Companies - 21

Galix Networking (Pty) Ltd 235 451

Graysonreed Consulting (Pty) Ltd 24,900 -

Jasco Power 26 58

JOS South African - 5

Konica Minolta South Africa - 1,074

Kunene Makopo Risk Solutions (Pty) Ltd 576 895

Macman’s Inteligent Systems - 236

Matlama Trading & Projects - 46

Mosebo Networks 4,796 -

Ntumba & Associates Consulting 2,150 2,736

Prosperosa 360 (Pty) Ltd 171 342

Servest (Pty) Ltd 64 129

Servest Interior Solutions 61 122

Singa Tel (Pty)Ltd T/A Net 15 2,773 -

SoluGrowth (Pty) Ltd (Deloitte & Touche) 4,541 633

Thabitech - 221

Vuvuzela Hotline (Pty) Ltd 52 101

Xon Systems - 295

47,213 5,023Commitments with secured rates, that are used as and when services are needed, these commitments are capped

according to appointment letter. The capping varies from R500,000.00 to R45,000,000.00. The list is as follows:

Adams & Adams As per quoted rates

AE Soft (Pty) Ltd As per quoted rates

Arekgone Trading As per quoted rates

Asikhuthale Trading Enterprise As per quoted rates

96


MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000Avis Car Rental As per quoted rates

Bidvest Car Rental As per quoted rates

BLN Holding As per quoted rates

Buildup Properties & Projects As per quoted rates

Ctrack Mzansi (Pty) Ltd As per quoted rates

Docufile/ Iron Mountain As per RFQ rates

Falahmetrix Solutions As per quoted rates

Finware Enterprise System As per quoted rates

Five Star Communications As per quoted rates

Global Software & IT Specialist As per quoted rates

Hertz Rent a Car As per quoted rates

Intergrumentery Holding As per quoted rates

Joli-Luv Foodnet and Funfare Park As per quoted rates

Khano Consulting Services As per quoted rates

Lavan Services As per quoted rates

Mabza Consulting As per quoted rates

Mbowane Attorneys As per quoted rates

Mohauict Projects As per quoted rates

Ndumiso Voyi Inc As per quoted rates

NEO Technologies As per quoted rates

Sim And Bontsi As per quoted rates

Vodacom As per quoted rates

Werksmans Attorneys As per quoted rates


97

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000

18 Prior year errors

During the current financial year, the entity reviewed prior period transactions. The review resulted in adjustments

relating to the 2017/18 financial year, which affected a number of general ledger accounts. The prior period was

adjusted retrospectively. The impact of the correction of the error(s) can be summarised as follows:

a Impact on account balances:

Decrease in Establishment & Support of SMMES Expenditure 7 - -955

Increase in Inventory (Consumables) 10 - 955

Increase in Discretionary Grant Commitments 17.1 - 955

During the current financial year, the CETA Identified expensed items that should have been recorded as inventory at

the 31 March 2018 year-end. The correction related to the inventory resulted in a prior year error.

b Impact on account balances:

Increase in Discretionary Grant Commitments - Allocations 17.1 - 54,248

During the current financial year, the CETA identified Discretionary Grant offer letters that were received after 31 March

2018, but signed before 31 March 2018 by entity. Therefore, the commitment needs to be reported in the correct

period.

c Impact on account balances:

Increase in In-Kind Contributions - Facilities (Income) 21 - -621

Increase in In-Kind Contributions - Facilities (Expense) 21 - 621

During the current financial year, the CETA management in consultation with the audit committee concluded that all

benefits relating to related parties need to be disclosed as per note 21. This disclosure will therefore affect the prior

year.

d Impact on account balances:

Decrease in Receivables from exchange transactions 9 - -3,004

Increase Receivables from non-exchange transactions 9 - 3,004

Increase Payables from non-exchange transactions 13 -97,715 -46,854

Decrease in Payables from exchange transactions 13 97,715 46,854

During the finalization of the financial statements, the Auditor General gave an opinion on the classifications of

exchange and non-exchange transactions. The CETA adjusted its receivables and payables accordingly.

98


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000

19 Reclassification

a During the current financial year, the CETA Identified a commitment that was previously added under Skills

Development Centres. The intention is to disclose the commitment separately under the CETA Academy.

Impact on account balances:

Decrease Skills Development Centre 17.1 - -150,000

Increase CETA Academy 17.1 - 150,000

b During the current financial year, the CETA management identified that annual leave was accounted for as a provision in

accordance with GRAP 19. After careful assessment, management concluded that leave pay needed to be reclassified

as an accrual.

Impact on account balances:

Decrease in Provisions 13.2 - 1,904

Increase Payables from exchange transactions 13.2 - -1,904


99

20 Related Parties

Transactions with entities under common control

By virtue of the CETA being a National Public Entity related to entities and departments in the National sphere of

government, it is considered related to, DHET, National Skills Authority, QCTO, UIF, TVET Colleges, other Government

Departments, other Seta’s and National Skills Fund. The transactions are consistent with normal operating relationships

between the entities, and are undertaken on terms and conditions that are normal for such transactions. Where there

were transactions and balances arising due to the movement of funds between entities under common control of the

department, these amounts are disclosed as below.

2019 2018

R ‘000 R ‘000 Transaction Amount Transaction Amount

Amount receivable/ Amount receivable/

received/ (paid) (payables) received/ (paid) (payables)

DHET 643,096 - 589,816 -

MERSETA 182 - 2,708

-

Department of Transport: KZN 4,564 - 4,493 -

Department of Public Works: Gauteng 518 - 486 -

Department of Roads: Gauteng 360 - 380 -

Department of Public Works: KZN 488 - 415 -

Department of Roads and transport: NCP 966 - - -

QCTO -4,240 - -4,763 -

Provincial Disaster Management Centre - 89 - -

SSETA - 146 - 169

Northwest - 97 - 89

Motheo TVET College - 651 - 58

False Bay TVET College - 60 - 57

Seda Incubator - 145 - 138

Midlands TVET College - 81 - 78

Tshwane South TVET College - 34 - 32

645,935 1,304 593,536 621

The transaction from MERSETA relates to Inter SETA transfers. The amount of the transaction includes interest and

penalties (where applicable) transferred to or from the CETA.

The Departments of Transport, Road and Public Works contributed public sector levies to the CETA.

Emanating from the collaboration between the Services and Construction SETAs, the SETAs share joint projects and

resources such as office space, assets, bursaries etc.

Following the Minister’s request for SETAs to have offices in TVET Colleges, the CETA’s provincial offices are located in

TVET Colleges. In most colleges, the CETA does not pay rent for the granted office space.

100


REMUNERATION TO KEY MANAGEMENT AND ACCOUNTING AUTHORITY DISCLOSURE FOR THE YEAR ENDED 31 MARCH 2019

CETA-SALARIES

Paid to Key Management

The key management personnel (as defined by Related Party Disclosures) of the CETA are: the members of the

accounting authority and the members of senior management.

Total Cost Acting

to Company Allowance Lumpsum Bonus Total

R ‘000 R ‘000 R ‘000 R ‘000 R ‘000

Executive Management 10,109 654 100 2,327 13,191 Total number 6


101

CET

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102


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000 21 In-Kind Contributions - Facilities The CETA has saved costs due to the relations as per above note, the calculation of estimated amounts that the CETA

would have had to pay in the absence of the related party is presented below. The amounts would have been as follows:

a Cost of Occupancy

Provincial Office

Mpumalanga 89 28

KZN 121 115

North West 97 89

Free State 651 58

Western Cape 60 57

Northern Cape 145 138

Eastern Cape 81 78

Gauteng 34 32

1,279 596

The CETA Limpopo provincial office is not included above as it currently pays for occupancy costs. Mpumalanga and the

Free State provinces moved to bigger office space in the current year.

b Equipment (Generator)

Head Office 25 25

The Generator was bought in June 2011 and was fully depreciated by June 2016. The costs for the transportation,

installation and maintenance are incurred by the CETA.

Total 1,304 621


103

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘00022 Irregular Expenditure The incurred irregular expenditure related to:

An unauthorised adjustment to employment costs. This is currently a legal matter between the CETA and its employees.

The CETA board resolution indicated action to be taken in a form of consequence management and to recover the irregular

expenditure. The recovery has been done through an application for a declaratory order.

A revised budget was not submitted to the executive authority through the accounting authority of the CETA, when it became

known to the CETA that discretionary grant budget would be exceeded.

An irregularity on mandatory submissions from a successful bidder of a tender.

Opening balance - -

Add: Irregular Expenditure 79,429 -

Less: Amount condoned - -

79,429 - 23 Fruitless and Wasteful Expenditure There were no fruitless and wasteful expenditure incurred during the financial year.

24 Financial Instruments

In the course of CETA operations, it is exposed to interest rate, credit, liquidity and market risk. CETA has developed

a comprehensive risk strategy in terms of Treasury Regulation 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 below.

Financial instruments have not been discounted as they will all be settled or recovered within 6 months. The effect of

discounting was considered and found not to be material.

Interest rate risk CETA manages its interest rate risk by effectively investing CETA surplus the Corporation for Public Deposits (CPD) as per

Treasury Regulation 31.3.3.

Credit risk Floating rate Non-interest bearing2019 Weighted average period Effective until maturityAssets Amount interest rate Amount in years Total R ‘000 R ‘000 R ‘000

Cash and cash equivalents - Standard Bank 81,282 - 81,282

Cash and cash equivalents -

Corporation for Public Deposits 2,168,169 7.06% - 2,168,169

Receivables from non-exchange transactions - 1,058 1,058

Receivables from exchange transactions - 382 382

Total financial assets 2,249,451 1,441 2,250,892

104


2018 Weighted average period Effective until maturityAssets Amount interest rate Amount in years Total R ‘000 R ‘000 R ‘000

Cash and cash equivalents - Standard Bank 275,115 - 275,115

Cash and cash equivalents -

Corporation for Public Deposits 2,017,744 7.26% - 2,017,744

Receivables from non-exchange transactions - 9,022 9,022

Receivables from exchange transactions - 711 711

Total financial assets 2,292,859 9,733 2,302,592

Financial assets, which potentially subject CETA 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.

CETA 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 Regulation 28. CETA’s exposure is

continuous.

Credit risk with respect to levy paying employers is limited due to the nature of the income received. CETA does not

have any material exposure to any individual or counter-party. CETA’s concentration of credit risk is limited to the industry

(Construction related industries) in which CETA operates. No events occurred in the industry (Construction and related)

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 debts.

Liquidity risk

CETA manages liquidity risk through proper management of working capital, capital expenditure (and actual versus

forecasted cash flows and its cash management). Adequate reserves and liquid resources are maintained.

Contractual

Carrying Cash 6 months

2019 Amount Flows or less

Payables from non-exchange transactions 126,401 126,401 126,401

Payables from exchange transactions 8,865 8,865 8,865

135,266 Contractual

Carrying Cash 6 months

2018 Amount Flows or less

Payables from non-exchange transactions 68,735 68,735 68,735

Payables from exchange transactions 11,466 11,466 11,466

80,201

In case of liquidity problems, funding resources might be available in the terms of DHET and National Treasury approval for

borrowing requirements in the open market.


105

Market risk CETA 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 CETA is aware of.

Fair values CETA’s financial instruments consist mainly of cash and cash equivalents, accounts and other receivables and account and

other payables. No financial instruments were carried at an amount in excess of its fair value. Fair values could be reliably

measured for all financial instruments.

The following methods and assumptions are used to determine the fair value of each class of financial instruments:

Cash and cash equivalent Cash and cash equivalents comprise of cash held by CETA and short-term bank deposits with an original maturity of less

than three months. The carrying amount of these assets approximates their fair values.

Accounts receivable The carrying amount of accounts receivable is net of allowance for any doubtful debt, estimated by the Accounting

Authority based on prior experience. The carrying amount of these assets approximates their fair value. The effect of

discounting was considered and found to be immaterial.

Investments

The fair value of publicly traded investments is based on quoted market prices for those investments.

Accounts payables The carrying amount of account and other payables approximate their fair value due to the relatively short term maturity of

these financial liabilities.

Borrowings

The fair value of interest-bearing borrowings is based on the quoted market price for the same or similar issues or on the

current rates available for debt with the same maturity profile and effective interest rate with similar cash flows (only if

applicable)The effect of discounting was considered and found to be immaterial.

25 New accounting pronouncements At the date of authorisation of these financial statements, there are Standards and Interpretations in issue but not yet

effective. These include the following Standards and Interpretations that are applicable to the CETA and may have an

impact on future financial statements.

106


Standard Purpose Number Date effective

Related Party Disclosures Disclose relationships that

exist throughout the public

sector

GRAP 20 1 April 2019

Service Concession

Arrangements: Grantor

Prescribe the accounting

and disclosure requirements


Separate Financial

Statements



GRAP 34 Not yet effective

Consolidated Financial

Statements




Investments in Associates

and Joint Ventures




Joint Arrangements Prescribe the accounting



Disclosure of Interests in

Other Entities

Disclose information that

enables users to evaluate


Statutory Receivables Prescribe the accounting



Accounting by Principals

and Agents

Outline principles to be used

for assessment


Living and Non-living

Resources




26 Contingencies Contingent Assets

a Litigations Description R ‘000Ms R Malatji Employee related recoveries 22

MAMUHLE Recovery of monies paid to entity 300

Limpopo Chamber of Commerce Recovery of monies paid to entity -

322

The board approved the cancelation of all legal matters relating to recoveries from entities, due to the recovery being

uneconomical.

b SARS Reversal R ‘000

Aveng Africa (Pty) Ltd 165,370

The South African Revenue Services (SARS) reversed the levy that was paid to the CETA in July 2015, leaving the CETA

with the above amounts as a possible recovery from Aveng.


107

Contingent Liabilities a Retention of surplus funds R ‘000

In terms of the Grant Regulation 3(11), SETAs are expected to have spent or committed (through actual contractual

obligations) at least 95% of discretionary funds available to use as at 31 March of each year. The possible liability is

calculated as follows:

Discretionary grant reserves 2,056,504

Less: Commitments -3,018,402

Less: Allowable 5% -102,825

-

b SARS Reversal R ‘000

Department of Higher Education and Training 217,557

The South African Revenue Services (SARS) reversed the levy that was paid to the CETA in July 2015, leaving the CETA

with the above amounts as a possible liability owed to the Department’s system.

c Litigations Description R ‘000SAYEP Summons against the CETA claiming payment to entity 60

ABANGUNI Summons against the CETA claiming payment to entity -

ONTIME DESIGNS Summons against the CETA claiming payment to entity 80

MOHOTJI Employee related claims -

MOTHOA Employee related claims -

NDOVELA Employee related claims -

RASHIDA MALATJI Employee related claims -

TAU MALATJI Employee related claims -

140

27 Going concern The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This

basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of

liabilities, contingent obligations and commitments will occur in the ordinary course of business.

28 Events after the reporting period Management is not aware of any matters or circumstances that arose from the end of the date of this reporting financial

year which would require adjustments to or disclosure in the financial statements.

29 Presentation of Budget Information Purpose:

The purpose is to present a comparison of the budget amounts for which the Construction Education and Training Authority

(CETA) is publicly accountable for, against the actual amounts received and spent during the financial year for each level of

legislative oversight.

108


Analysis of variances: Revenue

Levy Income is less than the budgeted amount, this is due to lower than anticipated levy income received during the

financial year. Other income such as Interest from CPD assisted the total income for the year to be more than the budgeted

amount.

Employer grant expenses The Employer grant expenditure were lower than the budgeted amount despite the increase in WSP submission, this due to

the lower than anticipated levy income received during the financial year and the reversal of levies by SARS.

Discretionary grant expenses The significant increase in discretionary grant expenditure was due to the increase in capacity of the project

implementation and invoicing units. This increase indicates a positive movement on discretionary grants and the CETA

has started to tap into its discretionary grant reserve. The CETA still implements strict controls and a performance based

payment model.

Administration expenditure Admin expenditure were less than the budgeted amount during the year, the CETA has managed to monitor its spending

closely to ensure that it stays within the 10%, especially since projected levy income was not achieved. The irregular

expenditure in note 22 affected the increase in most administration related line items under notes 6 and 7. Items affected

by the irregular expenditure among others are, the number of board meetings held, legal costs and cost of employment.

The appointment of the interns affected the usage of stationary, printing costs, usage of office supplies etc.

Midrand Builders Centre183 Kerk Street (cnr Old Pretoria Main Road) Halfway House

Midrand,1685

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2019 Construction Education and Training Authority (CETA ...

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