Local Government Sector Education Training Authority

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Local Government Sector Education Training
Authority
PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND
TRAINING (PCHET) PRESENTATION ON THE LGSETA
ANNUAL REPORT 2011/12 27 FEBRUARY 2013
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Background context state of the LGSETA

• Submitted 2011/12 annual report in September 2012
• Engaged with DHET formally in November 2012
• on the areas of the LGSETAs underperformance
• Outcome of the engagement were formal
  representations to the Minister for a section 14
  (a) intervention to be approved by the Minister
  as a basis for turning around the performance of
  the LGSETA

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Background context state of the LGSETA
(continued)

• Currently the LGSETA is interacting with Minister
  on
• A revised 2012/13 and 2013/14 strategic plans
  that must be in accordance with the requirements
  as communicated to the SETA
• This presentation to PCHET is made against the
  above mentioned context and specific
  organisational matters that emanate from the
  annual report 2011/12 read together with the
  audited financial statements of the same period.

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Governance Matters

• The meetings of the Board and its structures has
  been held as per the constitution
• Majority of Board members were appointed in
  September 2011
• Late submission of Annual Report one of the main
  challenges

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High level summary of the 2011/12 Annual report

• Contributed to the delivery of Government
  Outcomes 5, 9, NSDSIII and National Skills
  Accord.
• Councillor Induction after Local Government
  election in 2011, almost eight thousand
  councillors (8000) inducted
• Officials trained on minimum competency
  requirement, and on scarce and critical skills
  (Finance)
• Registered 552 Artisan learners
• Assist municipalities in achieving blue and green
  drop status by training 1795 Water Process
  Controllers in Municipalities

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High level summary of the 2011/12 Annual report
(continued)

• Provided 181 Bursaries on various critical skill
  areas including Ichthyology with Rhodes
  Universities which also contributes to Rural
  Development.
• Supported 86 Interns in Horticulture and Nature
  Conservation

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Scarce and critical skills
OFO Code Occupation Intervention Location
111301 Councillor 7 498 inducted in a programme implemented through a partnership (LGSETA/ SALGA) National project
111403 Local authority Manager/ Finance MFMA National Treasury competencies various universities National Project
224502 Valuer SA Council for Property Valuers- 27 interns 11 Bursaries National Project
221204 Internal Audit 220 learnerships 40 interns National Project
232601 Urban Regional Planners 20 bursaries 5 interns National Project
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Scarce and critical skills (continued)
OFO Code Occupation Intervention Location
233202/2333202 engineers/ technologists 11 interns 25 bursaries (4 GCC ) National
334100 Artisans electrical, plumbing, fitters DBSA/ MISA partnership - 230 artisans Municipal partnerships - 332 National
551101 Accounts clerks Local Government Accounting Certificate 1000 learnerships National
712909 Water plant operator 1100 learnerships 400 skills programmes National Dept of water Affairs EWSETA collaboration
821101 Builders workers ( road construction) 500 learnerships skills programmes National
821102 Drainage, sewerage stormwater 300 learnerships skills programmes National
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Strategic Focus Areas(Rural Development )

• Discretionary grant focuses on 108 rural and
  vulnerable municipalities as identified by DCoG,
  plus 23 vulnerable districts ( SIPS 6) with
  particular emphasis on water and waste water
  treatment operations (learnerships skills
  programmes)
• Marine resource management training for municipal
  officials, subsistence fishermen traditional
  leaders OR Tambo, Port St Johns, Port Nolloth/
  Richtersveld, Eden, Saldanha ( skills programmes
  Rhodes university Dept of Icthyology)

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Strategic Focus Area(Higher Education
Institution Agreements)

• University of Pretoria Municipal Finance R4,5m
• North West Municipal Finance R2,7m
• Stellenbosch Municipal finance R2,7m
• Ft Hare Municipal Finance R 2,7m
• NMMU Municipal Finance R2,7m
• Rhodes Marine resources R980 000

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Historical Audit Reports

• 2011/12 - Disclaimer
• 2010/11 - Unqualified
• 2009/10 - Unqualified
• 2008/09 Unqualified

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Administrative Interventions

• CFO appointed for 6 months
• HR Corporate Manager appointed for 6 months
• 18 additional staff employed on temporary basis
• Organisational redesign completed awaiting Board
  approval
• Delegations revised awaiting Board approval
• All HR SCM Policies revised

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Administrative Interventions (continued)

• Working closely with the AG to avoid another
  disclaimer.
• Meeting with National Treasury to finalise
  condonation of irregular expenditure on 28
  February 2013.
• A detailed action plan has been compiled and is
  attached to deal with the following
• Audit Findings on Supply Chain Management
• Audit Findings on Human Resource matters

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LGSETA Turnaround Plan of Action

• Boards preliminary assessment of the LGSETA
  challenges
• Non-compliance to statutory obligations and
  underperformance
• Board members not functioning as cohesive unit
• Management underperformance
• Non-compliance with auditing requirements

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LGSETA Turnaround Plan of Action (continued)

• Key Actions indentified by the Board
• Appointment of turnaround specialist
• Institutionalise organisational calendar
• Institutionalise Board Quarterly Performance
  review sessions
• Establish formal bi-annual Board dialogues with
  Minister
• Review of delegations
• Finalise organisational redesign
• Dedicated attention to DHET compliance matters
• Submit to Minister Board representation on LGSETA
  constitution
• Monitoring of turnaround
• Submit progress to DHET
• Interim chairperson

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STRATEGIC FOCUS AREA(FET Partnership)

• To link FETs with municipalities for training in
  Rural areas.
• Signed provincial MOUs with FETs in KZN, Western
  Cape and Mpumalanga.
• Individual MOUs
• To establish offices and collaborate with FETs.
• Limpopo, Mopani offices confirmed to be opened in
  March 2013. (Office identified and agreed with
  management)
• Northern Cape Urban FET and Mpumalanga (Gert
  Sibande) by June 2013
• MOUs to be finalised by 28 February with Esayidi,
  Umfolozi Mopani South, Sekhukhune.
• End of March Sekhukhune, Uitenhage, Northern Cape
  Urban FET.
• Taletso in Mafikeng has been identified for
  Artisan training.

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STRATEGIC FOCUS AREA (Collaboration with FETs)

• Bursaries
• Environmental Practice training
• Disaster management
• Civil Education
• Rural Development Fisheries project.
• Training of traditional leaders
• WIL placement with municipalities
• Water process controller qualifications

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Conclusion

• Turnaround actions have been successfully
  implemented and we are expecting an unqualified
  report in 2012/13

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THANK YOU