Local Government Sector Education Training Authority

1
Local Government Sector Education Training
Authority
BUDGET REVIEW REPORT 2007/8 TO PORTFOLIO
COMMITTEE ON PROVINCIAL LOCAL GOVERNMENT

• SAM MALOKA
• CHAIRPERSON

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Chairpersons Report

• The LGSETAs financial year end report for the
  period 2007\08 ends a remarkable period in the
  history of the organization. The seta made
  significant strides in bringing key projects and
  programmes to fruition which largely address the
  setas key strategic priority areas
• Development of training materials for traditional
  leaders ( LED and Community Development)
• Launch and Training of Traditional leaders
• Launch of Training for Ward Committee programme
• National Skills Colloquium which was held in May
  2007 which assisted the sector in responding to
  the sector challenges pertaining to matters
  related to training and development
• The seta has also made some impact in the field
  of the scarce skills by providing bursaries to
  qualifying young learners to study in the
  following fields that are cornerstone to
  Municipalities in providing service delivery to
  the communities
• Electrical Engineering
• Water Services
• Civil Engineering
• An amount of R 1m has been budgeted for this
  purpose and to date at least an amount of R197
  000 has been allocated in a form of bursaries to
  20learners

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Chairpersons Report Cntd/1

• The funds mentioned above for bursaries may not
  be necessary sufficient and as the sector
  together with the department of education we
  would need to motivate and encourage learners
  particularly from high school level to consider
  technical studies as an attempt to deal with a
  shortage of skills in the technical field within
  the local government sector
• The seta also prides itself for the work done in
  development of the following learnerships that
  would be implemented in the next financial year
  2007/8
• Municipal finance NQF level 5 6
• Emergency service operations NQF level 4 5
• Councilor Practice
• Ward Committee
• IDP
• Traditional Leadership
• The abovementioned qualifications could not have
  been successfully developed if it were not the
  assistance and commitment of the following
  strategic partners
• IMFO (Institute of Municipal Finance Officers)
• SEASI (Institute of Fire Officers)
• German Technical cooperation (GTZ)
• DPLG
• SALGA
• In an attempt to coordinate training and
  development matters within the sector, the LGSETA
  has entered into a Memorandum of Understanding
  with its strategic partners, namely DPLG and
  SALGA to ensure that a cohesive approach in
  coordinating of training is achieved.

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Chairpersons Report
Cntd/2

• The 2006/7 SSP process identified skills gaps in
  the sector in the following areas
• Infrastructure and service delivery
• Municipal financial viability
• Community based participation and planning
• Management and leadership
• ABET

The year 2007\8 has been one of the exciting one
of the seta in terms of achieving its target and
hope that by the end of seta license in 2010 the
seta would have complied accordingly as per
service level agreement entered into with
department of labour and the impact made through
seta initiatives would have changed lives of
ordinary people within their communities
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Sector Skills Planning Cont/1

The LGSETA has engaged in a series of
discretionary grant funded projects to attempt to
assist the sector in addressing these skills gaps.
Strategic Priority Area Project Name Mode of delivery
Infrastructure and service delivery infrastructure asset maintenance labour intensive construction (EPWP) electricity reticulation water services roads RPL Learnership Skills programme Internship Bursary Apprenticeship
Financial viability property valuation audit and procurement municipal finance RPL Learnership Skills programme Internship Bursary
Community based participation and planning Ward committees Planning IDP s LED RPL Learnership Skills programme Internship
Management and leadership Training committees Councillors Municipal Leadership Development RPL Learnership Skills programme
ABET Municipal Employees structured learning
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Sector Skills Planning Cntd/2

• 1. Research and Information Management
• SSP research was conducted into scarce skills in
  the sector. These findings were incorporated into
  our Sector Skills Plan update which was signed
  off by the DPLG and was approved by the Dept of
  Labour in February 2008.
• The basis of the scarce skills research are
  the Workplace Skills Plans submitted by
  municipalities and municipal entities. The LGSETA
  has a 90 submission rate of WSPs from the
  sector, of a steadily improving quality. As a
  result our data on the sector is becoming
  increasingly accurate.
• The updated scarce skills listing has been
  distributed to the sector, and Skills Development
  Facilitators in the sector have been trained in
  the use of the scarce skills guide.
• In addition, to training on the scarce skills
  guide the SDFs have been trained on the use of
  the new WSP template, guideline and quality
  criteria.
• A new quarterly monitoring reporting schedule
  has been distributed to municipalities, allowing
  the LGSETA to capture the levels of training
  undertaken in the sector more accurately, and
  allowing us to fulfill our reporting obligations
  to the Dept of Labour. The template allows the
  LGSETA to monitor municipal expenditure on
  training funded by the mandatory grant.
• BUDGET R2, 6m EXPNDITURE R 1,38m

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Comparative WSP Submissions
Municipal Type 2004/5 percentage 2005/6 percentage 2006/7 Percentage 2007/8 Percentage
Metropolitan 6 100 5 83 5 83 6 100
District 37 78 27 57 38 82 206 89
Local 177 76 145 62 181 78 43 93
Total 220 177 224 255
Mandatory Grants Disbursed over two quarters
R29,3m
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Sector Skills Planning Cntd/3

• Discretionary grant funded projects
• Training of traditional leaders ( in conjunction
  with the NHTL and DPLG) to date contracts worth
  approximately R 1,8m have been signed with North
  West, Limpopo, Mpumalanga and the Eastern Cape,
  covering the training of approximately of 480
  traditional leaders in community facilitation and
  local economic development. Assistance will also
  be given to KZN to provide ABET for traditional
  leaders
• Budget R5m Expenditure R1,8m
• Infrastructure Asset Management training new
  programme has been instituted on the training of
  municipal officials in infrastructure asset
  management. Approximately 600 officials will be
  trained in the first year, commencing April 2008.
  It is envisaged that a further 1200 will be
  trained later. In addition to the training, the
  project will register a customized qualification
  in infrastructure asset management.
• Budget R5,5m Expenditure R3, 78m

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Sector Skills Planning Cntd/4

• 1.2 ABET
• A feasibility study was commissioned and
  concluded on assessing the possibility of
  developing a customized ABET programme relevant
  to the sectors specific needs. A tender was
  launched and awarded to a consortium comprised of
  UNISA ABET Institute, and the SA Institute for
  Distance Education.
• Budget R2.2m Expenditure R0
• It is hoped that the introduction of a
  streamlined focused ABET programme targeted
  specifically at the needs of our sector will
  improve the participation rates for ABET in our
  sector. Currently, the position is as follows

PROVINCE CONTRACTS ISSUED CONTRACTS RECEIVED TOTAL NO. OF LEARNERS
Eastern Cape 2 1 44
Free State 3 2 570
Gauteng 3 2 375
Kwazulu/Natal 1 1 34
Limpopo 1 1 160
Mpumalanga 1 1 110
North West 6 2 457
Northern Cape
Western Cape 12 1 444
TOTAL 29 11 2194
.
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Sector Skills Planning Cntd/5

• 1.3 Discretionary Grant Funded strategic projects
  and Scarce Skills Initiatives
• 1.3.1 South African Council for the Property
  Valuers Profession (SACPVP)
• The 2006/7 SSP review demonstrated a lack of
  capacity within the sector to implement the
  Municipal Property Rates Act. Consequently, the
  LGSETA approved a discretionary grant funded
  project to be implemented in conjunction with the
  SACPVP and DPLG to contribute to increasing
  municipal capacity in this area. An amount of R
  7,5m has been committed to this project over a
  three year period. This amount will provide
  bursaries for 50 students p.a. (150 bursaries
  over 3 years) and internships for 100 students
  over 3 years. Currently, 100 bursaries have been
  awarded ( 2007 50, 2008 50). However, only 12
  interns have been placed in municipalities to
  date, due to a scarcity of suitable candidates.
• Budget R7.5m (3 years) Expenditure R655 000
• 1.3.2 South African Institution for Civil
  Engineers (SAICE)
• The 2005/6 SSP Review revealed a severe shortage
  within in the sector of suitably qualified
  engineers and engineering technicians which
  affects the sectors capacity to deliver services.
  Consequently funding was set aside for both
  bursaries and internships and SAICE was
  contracted to administer the project. The project
  has been running for 3 years and 60 engineering
  bursaries have been awarded to municipal
  employees wishing to further their studies in
  engineering ( part time studies). A total of 240
  engineering interns have been placed at
  municipalities over the three year period. The
  project is scheduled to continue until 2010.
• Budget R1m (1 year) Expenditure R196 000

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Sector Skills Planning Cntd/6

• 1.3.4 Institute of Municipal Finance Officers
  (IMFO)
• The Institute of Municipal Finance Officers was
  contracted to administer bursaries and internship
  schemes. The focus of these schemes was informed
  by the inadequately qualified internal audit
  personnel in municipalities. An amount of R
  7,900, 000. 00 has been committed to this project
  over a three year period. This amount will
  provide bursaries for 100 students and
  internships for 100 students per annum. Bursaries
  will be awarded, and interns placed during April.
  Budget R3.5m Expenditure R 525 000
• 1.3.5 Local Government Network (LGNET)/Local
  Government Resource Centre (LGRC)
• The above project is funded by LGSETA and
  initiated by the Development Bank of Southern
  Africa. An amount of R5m was set aside for the
  implementation of the project during the 2007/08
  period and DBSA was contracted to administer the
  project. About 144 Municipalities will acquire
  basic Information Technology knowledge and skills
  through this project. To date 20 municipalities
  have completed their training ( 223 officials).
  Budget R5.7m Expenditure R2.85m
• 1.3.6 Local Government Skills Audit
• In conjunction with DPLG, SALGA, SAMWU and IMATU
  the LGSETA is implementing the sector wide skills
  audit of all municipal staff. The skills audit
  commenced in August 2007 and is scheduled to be
  completed by 2010. The Section 57 skills audit
  process has been fast tracked and will be
  completed by November 2008. To date,
  approximately 15 municipalities have been
  completed. A further outcome of the skills audit
  will be the establishment of recommendations and
  guidelines for staffing norms and organograms
  linked to service delivery needs. Budget
  R15m Expenditure R2m

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Sector Skills Planning Cntd/7

• 1.3 Discretionary Grant Funded strategic projects
  and Scarce Skills Initiatives
• 1.3.7 Community Development Workers
• A grant was approved to train a further 590
  community development workers, mainly in the
  North West and Limpopo provinces.
• Budget R13m Expenditure R6.38m

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LEARNERSHIP

• In giving effect to its legislative obligations
  in terms of the Skills Development
• Act,1998 (Act No. 97 of 1998),which requires the
  LGSETA to establish, register,
• promote and administer learnerships in the Local
  Government Sector.
• The Learnership department has been involved in
  the following functions
• Ensuring the development of qualification and
  skills programmes which address the needs of the
  sector
• Initiating and supervising the implementation of
  a wide range of needs-oriented training
  interventions in the form of Learnerships, Skills
  Programmes, Apprenticeships or other types of
  structured learning
• Ensuring the disbursement of discretionary grants
  to municipalities
• Furthermore, the Department has also supported
  the implementation of quality
• Training with the commissioning and provision of
  comprehensive training and
• support material to accredited training providers
  to as part of a more strategic
• intervention.

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LEARNERSHIP Cntd/...2

• 2.1 Career path and professional progression
• Based on the analysis of the Workplace Skills
  Plan and with inputs from the major
• stakeholders such as the Department for
  Provincial and Local Government (the
• dplg), National Treasury (NT) and SALGA the
  LGSETA is continuously
• implementing and expanding a comprehensive career
  path for municipal
• employees.
• The Career path and progression diagram (on slide
  17) illustrates this strategy,
• where an employee has the chance to progress from
  one NQF level to another
• level. With this approach the professional
  progression of employees is supported
• and which will also lead to improved service
  delivery of local government.

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LEARNERSHIP Cntd/...3
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LEARNERSHIP cntd/...4

• 2.2 Progress on the Implementation of
  Learnerships
• In the 2007 / 08 financial year, the
  municipalities at all levels increasingly
  implemented a wide range of unit standard based
  training, in particular Learnership programmes

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LEARNERSHIP cntd/...5
Learnership Learners
Community Development Worker (CDW), NQF 4 102
Admin Finance, NQF 4 - 159
Local Economic Development, NQF 4 - 48
End User Computing 100
Emergency Services Operations, NQF 5 66
Road Traffic Management 16
Basic Pharmacy 10
ODETDP 11
Basic Technical Practice 16
Environmental Practice 16
Internal Audit Technician 10
Electrical engineering (NQF 2) 37
Water Purification Process Operations ((NQF 2) 40
Wastewater Process Operations (NQF 2) - 95
Water Reticulation Services (NQF 2) 40
e Records Management (NQF 4) 0
Sanitation Project Coordination (NQF 5) 0
Customer Management (NQF Level 5) 0
Training and Development Practice (NQF 5) 0
Total 766
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LEARNERSHIP Cntd/...5
2.3 Apprenticeships and artisan Learnerships By
contributing to the national priority on scarce
skills the LGSETA is also focusing on promoting
and funding training in the artisan field in the
form of apprenticeships or artisan Learnerships
Apprenticeship Learners
Automotive Electrician 3
Automotive Machinist 0
Boilermaker 5
Bricklayer 0
Diesel Mechanic 24
Electrician 117
Fitter and Turner 15
Motor Mechanic 4
Plater and Welder 0
Plumber 13
Vehicle Mechanic
Welder 13
Various artisan Learnerships 2
Total artisan training 196
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LEARNERSHIP Cntd/...9

• 2.4.4 Municipal Finance National Treasury
• Training has been completed at the cost for 380
  employees to do a Municipal Finance Management
  Programme offered by Wits University in the
  eleven core National Treasury competencies for
  Municipal Finance Managers.
• The cost of training per Learners is R45 000.00.
  The funding is directly from municipalities
  assisted by national treasury
• Budget R17.1m Expenditure R17.1m
• A further 150 municipal finance officials are
  being trained as part of a partnership between
  IMFO and ABSA. The training is being monitored
  by the LGSETA and funded by ABSA bank through the
  University Pretoria
• Budget R1.6m Expenditure R870 000.00

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ETQA

• 3. EDUCATION TRAINING QUALITY ASSURANCE (ETQA)
• The LGSETA in line with its re-accreditation
  mandate by the SAQA on 27 September 2005 has
  continued to fulfil its main primary functions
  outlined below on quality assurance of Education
  Training and Development within the Local
  Government sector.
• In the performance of these functions, as further
  discussed in this report, the LGSETA has
  continuously reported to SAQA on the performance
  of its mandatory functions and positive feedback
  from SAQA has been received through their
  monitoring and auditing, however, certain areas
  were identified for improvement.
• The LGSETA has continued to develop
  qualifications and standards within its primary
  focus areas, especially Ward Committee, Fire and
  Rescue, Environmental Practice, etc. This
  allowed the possibility of accreditation of
  providers that were greatly limited in some areas
  of training to deliver learning. It further
  enhanced the registration of assessors and
  moderators against such qualifications as
  scarcity continued to exist with respect to ETD
  Practitioners within the Local Government sector
  around specific fields of expertise.
• The LGSETA has therefore continued to ensure that
  all training was monitored and evaluated so that
  quality measures were not compromised. This
  report therefore highlights most of the work
  performed by the ETQA division in line with its
  quality assurance mandate.
• MILESTONES
• The LGSETA has made significant milestones in the
  performance of its quality assurance functions in
  the current financial year.

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ETQA Cntd/..1

• QUALITY PROMOTION AND PROVIDER DEVELOPMENT
• The LGSETA has nationally rolled out six projects
  to ensure that there is a greater pool of
  Education Training and Development providers,
  Assessors, Mentors, Coaches, Moderators, and RPL
  Advisors are available to perform quality
  assurance functions in the attainment of the
  qualifications
• Accreditation of Providers Provider development
  workshops have been completed and they are
  currently being supported on submitting
  accreditation PoEs. Approximately 30 ETD
  providers out of the targeted 90 (i.e. 10 per
  province) have submitted PoEs..
• Quality Management System Provider development
  workshops have been completed and approximately
  166 delegates attended workshops in all 9
  provinces. A provider QMS toolkit has been
  developed for use by providers seeking
  accreditation.
• Training of Assessors, Coaches and Mentors
  Training has been conducted in all 9 provinces
  and 741 candidate Assessors/Coaches/Mentors, as
  opposed to the targeted 900 have been trained.
  All have been found competent.
• Training of Moderators and Verifiers
  Moderator/Verifier training has begun in the 9
  provinces on the 741 Assessors found competent.
  This will ensure that a pool of Moderators exist
  in the sector.
• Apprenticeships Assessment System An pilot
  apprenticeship transformation project has begun
  at the Ekurhuleni Training Centre. The pilot
  aims to structure the curriculum in NQF format,
  develop the level 3 and level 4 assessment tools,
  identify and analyse learning materials for any
  gaps which need to be addressed

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ETQA Cntd/..2

• PROVIDER DEVELOPMENT SUPPORT FOR THE TRADITIONAL
  LEADERSHIP DEVELOPMENT PROGRAMME (TLDP)
• The LGSETA has developed a TLDP at NQF level 4 to
  train Traditional Leaders in different provinces.
• The TLDP is based on two skills programmes
  focusing on Local Economic Development and
  Community Development Worker linked to 5 unit
  standards
• The learning material and assessment guides were
  developed with specific focus to LED and
  Community Facilitation unit standards.
• A total of 25 ETD providers have been accredited
  and/or programme approved to deliver the TLDP and
  these are spread across the provinces.
• The TLDP project is viewed as one of the
  successful projects that focuses on providing
  quality training for AmaKhosi.

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ETQA Cntd/..3

• STANDARDS GENERATION
• The LGSETA and SAQA set up a Joint Implementation
  Plan (JIP) to facilitate and fast track the
  generation of qualifications and their associated
  unit standards in the various fields within Local
  Government.
• 24 registered qualifications have been
  accredited to the LGSETA,
• All these qualifications have been supported by
  the JIP process between SAQA and the LGSETA.
• Bi-monthly meetings are held with SAQAs
  Standards Setting Directorate.
• The LGSETA is proud to highlight that a number
  of training providers have been accredited
  against these qualifications and this also
  includes SMME training providers.
• Further development of these qualifications to
  higher NQF levels is envisaged to ensure
  articulation and career pathing possibilities.

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ETQA Cntd/..4

• ACCREDITED AND PROGRAMME APPROVED PROVIDERS
• The LGSETA is proud to highlight that a total
  number of 96 providers have accredited and
  programme approved within the current financial
  year.
• Most of the training providers have been
  accredited against full qualifications and this
  has assisted the LGSETA to ensure that the
  learners enrolled attained full recognition of
  their achievements against registered
  qualifications.

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ETQA Cntd/..5
Provinces NUMBER OF ACCREDITED TRAINING PROVIDERS
Eastern Cape 10
Free State 9
Gauteng 35
Limpopo 8
Mpumalanga 1
N Cape 2
North West 3
W Cape 10
KZ- Natal 19
TOTAL 96
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ETQA Cntd/..6
PROVINCE NUMBER OF REGISTERED ASSESSORS MODERATORS NUMBER OF REGISTERED ASSESSORS MODERATORS
PROVINCE Assessors Moderators
Eastern Cape Assessors Moderators
Free State 39 12
Gauteng 23 8
Limpopo 101 27
Mpumalanga 14 2
N Cape 9 0
North West 0 0
W Cape 11 1
KZ- Natal 46 12
TOTAL 54 7
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FINANCE IT

• 7. LGSETA FINANCES AND INFORMATION TECHNOLOGY
• The mandate of the Finance and IT Department
  is to plan , execute and to efficiently manage
  the finances of the LGSETA to ensure that
  assets of the organisation are properly managed
  , safeguarded and that a fair and transparent
  procurement system is implemented in terms of
  the LGSETA policy and applicable legislation in
  this regard.
• In streamlining the objectives of the Finance
  and IT Department, the Finance \Tender Committee
  plays an important role in ensuring effective
  and transparent control over the financial
  processes and procedures which have been
  implemented to ensure to ensure that the
  finances of the LGSETA are efficiently managed.
• The Finance/Tender committee has met three times
  during the 2007\8 financial year. The Committee
  approved tenders and recommended policies to the
  EXCO for approval. The following internal audits
  were completed during the year under review
• Finance and administration
• Governance and regulatory
• Human Resources
• Procurement and programmes
• Information Technology system
• The reports of the independent Internal
  Auditors are submitted to the Audit Committee.
  The Audit Committee has met five times during the
  year under review and both the internal and
  external audit reports were dealt with
  accordingly at these meetings.

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FINANCE IT Cntd 1

• SKILLS DEVELOPMENT LEVY INCOME AND EXPENDITURE
• In terms of section 3(1) and 3(4) of the Skills
  Development Act, 1999(Act no 9of 1999),
  registered member companies of the LGSETA pay a
  skills development levy of 1 of the total
  payroll cost to the South African Revenue
  Services who then collects the levies on behalf
  of the Department of Labour. The Department of
  Labour transfers eighty percent of the total
  skills development levy paid by employers in the
  sector to the LGSETA and twenty percent to the
  National Skills Authority Fund of which two
  percent is paid to SARS for collecting skills
  development levies.
• It must be noted that LGSETA Database currently
  makes provision for demarcation code for
  employers within the local government sector and
  therefore other in the charts below
  represents employers in the sector including
  employers which have been incorrectly
  registered with the LGSETA. The total Skills
  Development Levy Income accounted by the LGSETA
  as at 31 Dec 2007 for the 2007\8 financial year
  amounts to R125,5 million

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LGSETA ADMIN LEVIES VS EXPENDITURE2003 TO 2008
30
FINANCE IT cntd/..3
31
FINANCE IT cntd/..4
32
FINANCE IT Cntd/5

• Discretionary Grant Income Expenditure
• The Discretionary Fund comprise of 20 (2005
  10) Discretionary Grant income from the Skills
  Development Levy, interest and penalties paid by
  employers in the sector, interest accrued,
  unspent income for administration from previous
  years and unclaimed Mandatory Grant income which
  have been transferred to the Discretionary Fund
  and interest accrued.
• The Executive Committee have approved funding to
  be utilized during the 2005 2010 financial
  years from the Discretionary Fund for
  Discretionary Grants and Special Projects with
  the aim of strengthening training activities in
  the sector through support to learnerships,
  skills programmes and apprenticeships, to address
  the priorities identified in the LGSETA Sector
  Skills Plan and to meet NSDS targets in
  accordance with the MOU with the Department of
  Labour.
• An amount of R21 million has been disbursed from
  Discretionary Funds to the end of December 2007.
  The projects which have not been completed
  during the 2007/2008 financial year will continue
  in the 2008/2009-Financial Year. Further sector
  priorities had been identified and funds have
  been allocated from the Discretionary Fund
  accordingly to be utilized during the 2005-2010
  financial year.
• CONCLUSION
• Given the challenges faced by the sector in
  particular to continuous restructuring of
  municipal staff strictures much has been done in
  terms training and development but one cannot
  disregard that the local government sector is one
  of the most politicized environment and in
  certain instances such conditions may interferer
  with delivery of training including seta projects
  that impacts towards negative impacts in
  achieving seta targets

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CONCLUSION

• THANK YOU!