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9/10/10. 22. 2. Establishment. PSETA established in March 2000 by Minister of Labour ito Skills Development Act, 1998 (SDA)2001 Cabinet decisionPSETA to be distinct unit within DPSAits administration to be funded from DPSA's budgetDPSA to provide secretariat services to PSETA. 9/10/10. 33. 3. Co
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2. 9/10/10 Establishment PSETA established in March 2000 by Minister of Labour ito Skills Development Act, 1998 (SDA)
2001 Cabinet decision
PSETA to be distinct unit within DPSA
its administration to be funded from DPSA’s budget
DPSA to provide secretariat services to PSETA
3. 9/10/10 Corporate form PSETA listed as public entity under Public Finance Management Act in Feb 2001, delisted in Nov 2001 & listed again in April 2006
Skills Development Act & PSETA’s Constitution require that PSETA be constituted & function as separate legal entity
Following listing of PSETA as public entity in 2006 DPSA staff worked at PSETA on secondment basis
Current certificate of establishment lapses on 31 March 2011
4. 9/10/10 Scope PSETA’s scope of coverage
all government departments & provincial administrations for transverse skills
most national departments for all areas of skills
parastatals not falling under another SETA, for all areas of skills
5. 9/10/10 Role clarification – PSETA, PALAMA & DPSA PSETA’s main functions
Develop & implement sector skills plan by establishing learnerships within framework of National Skills Development Strategy & HRD Strategic Framework for Public Service
Approve workplace skills plans (WSP) & monitor implementation
Establish learnerships & skills programmes and register learnership agreements (if required)
Accredit training providers & training for compliance with National Qualification Framework
Allocate grants to employers, providers & employees
(s10 of Skills Development Act)
6. 9/10/10 Role clarification – PSETA, PALAMA & DPSA PALAMA
Must provide training and conduct examinations/tests for public service as DG: PALAMA determines with approval of MPSA or as determined in regulations as requirement for appointment/transfer
May issue diplomas/certificates to persons who pass examinations
(Section 4 of Public Service Act)
7. 9/10/10 Role clarification – PSETA, PALAMA & DPSA
MPSA must set norms and standards for public service on training & development
in form of regulations, determinations & directives
DPSA to develop these norms & standards
(Section 3(1)(c), read with def of “employment practice” in s1, of Public Service Act)
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10. 9/10/10 Transfer of administrationof Skills Development Act (1) President transferred administration of SETA related provisions of Skills Development Act (SDA) from Minister of Labour to Minister of Higher Education & Training
Effective 1 November 2009
Minister & Department of Higher Education & Training now tasked with ensuring that all SETAs, including PSETA, complies with SDA
11. 9/10/10 Transfer of administrationof Skills Development Act (2) Transfer of SDA to MHET did not change relationship between PSETA & DPSA
Operational budget for PSETA still included in DPSA budget as transfer payment
MPSA in terms of PSETA Constitution appoints eight members on PSETA Board representing the State as employer and one expert
12. 9/10/10 PSETA’s financial report – background (1) Before 2009, PSETA did not have properly documented financial history
No properly structured accounting & recording system to effectively give account of the PSETA’s history
At end of 2008/09 year, environment was characterised by poor record keeping, absence of key documentation & practically no accounting & recording system
Same conclusion was reached & reported by Auditor General (AG) in 2007/08 and 2008/09 report
This situation resulted in AG giving blanket disclaimer on PSETA’s financial records
13. 9/10/10 PSETA’s financial report – background (2) Before 2007/08 financial year, PSETA had only been subjected to external audit in 2000/01 financial year
Therefore no independent review of PSETA’s operations for 6 years, factor which contributed to deterioration in management, accounting, reporting, monitoring & review systems at PSETA
14. 9/10/10 PSETA’s financial report – remedial steps (1) From Nov 2009 concerted effort to reconstruct PSETA’s financial records – completed in March 2010
Involved tracing of all PSETA transactions, identifying purpose & source relevant supporting documentation from its inception in 2000
Resulted in financial statements containing balances with proper audit trail
Financial statements for 2009/10 prepared based on reconstructed information
Resulted in much improved audit report for 2009/10
15. 9/10/10 PSETA’s financial report – remedial steps (2) Further progress
Auditors appointed in March 2010 & review of 2009/10 conducted
Audit Committee appointed in January 2010
Financial policies & procedures developed & approved by PSETA Board
Currently being reviewed with DPSA’s assistance
Other operational policies developed for approval e.g. declaration of interest, discretionary grant policies
16. 9/10/10 PSETA’s financial report –remedial steps (3) Further progress (cont)
Risk assessment exercise commenced in May 2010 and register & report developed for approval
Recording & accounting system procured
17. 9/10/10 PSETA’s financial report – fraud PSETA was victim to fraud by one of its Finance Manager in 2005
Bulk of fraud occurred on NSF account
SIU & SAPS investigation resulted in conviction of former Finance Manager
Final PWC forensic report was issued on 1 July 2010
report confirmed that at least R1.4 million was defrauded by former Finance Manager
In addition potential of R10.8 million unaccounted for and was reported & recommended for further investigation by SIU
18. 9/10/10 PSETA & DPSA Memorandum of Understanding Towards effective functioning of PSETA & facilitating PSETA’s independence, PSETA and DPSA concluded a MOU
Effective 20 March 2010
Updated 19 August 2010
MOU deals with-
Transfer of funds, staff & work tools of (e.g. furniture, laptops, etc) to PSETA
DPSA staff seconded to PSETA choice whether to remain DPSA employees or to transfer to PSETA
Corporate management & administrative support to PSETA by DPSA
19. 9/10/10 MOU (cont) &staff appointments Monitoring of implementation of MoU is taking place through regular standing meetings between PSETA & DPSA
PSETA & DPSA having regular meetings with Accountant-General Office to assist PSETA to establish required financial management & internal control systems & deal with audit queries
CEO & CFO positions filled in August 2010
Support staff is currently being recruited and staff compliment grown from 15 in 2009 to 26
New staff appointed by PSETA and not DPSA
20. 9/10/10 Placement of PSETA under administration In Aug 2010 MHET indicated that he intends to proceed with placing PSETA under administration & that DG: HET will shortly appoint administrator
Administrator will take over functions of Board
Administration (staff) of PSETA will continue
21. 9/10/10 DHET, DPSA & NT Task Team Task team regarding PSETA set up to deal with among others
Role of PSETA vis-ŕ-vis other role players
Also collaboration between DHET & DPSA to strengthen skills development & HR development across public service
Consisting of 4 officials each of DHET & DPSA and 2 NT officials
Work of task team to feed into SETA re-accreditation process to be completed end Sept
22. 9/10/10 Training budget of national & provincial departments / public entities National & provincial departments
must budget for at least 1% of its payroll for training & education of its employees
may contribute funds to a SETA
does not pay skills levy ito Skills Development Levy Act, 1999
Same applies to national & provincial public entities if 80% or more of their expenditure is defrayed directly/indirectly from funds voted by Parliament
23. 9/10/10 PSETA’s budget (1) Allocations from National Skills Fund not transferred via DPSA to PSETA but directly to PSETA’s bank account/s opened for this purpose
Operational/administrative budget for PSETA provided for via transfer payment on DPSA’s budget vote
Transfer payment from DPSA’s budget to PSETA is conditional on written assurance that it implements effective, efficient & transparent financial management & internal control systems (s38(1)(j) of PFMA)
24. 9/10/10 PSETA’s budget (2) 2009/10
No transfer payment to PSETA
NT approved that transfer amount be reclassified to become part of DPSA budget
However during financial year amount was ring-fenced & used for PSETA operational expenditure, including remuneration of DPSA staff seconded to PSETA
Of transfer amount of R21,842, an amount of R21,001 was spent in 2009/10 (96,1%)
25. 9/10/10 PSETA’s budget (3) 2010/11
Transfer amount for PSETA = R19 993
When PSETA provides written assurance, DPSA will transfer funds on quarterly basis based on projections
26. 9/10/10
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