PRESENTATION TO PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING – 7 NOVEMBER 2012

1. PRESENTATION TO PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING – 7 NOVEMBER 2012

2. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability OUTLINE OF PRESENTATION • Journey of the CHIETA to date (Challenges, Achievements and work in progress) • 2011\12 Annual Report - Financial and performance information • Looking forward – Projected deliverables / commitments • Questions and answers

3. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability JOURNEY OF NEW GOVERNING BOARD - CHALLENGES • A new board – 1 April 2012 • Previous CEO suspended • Acting CEO and challenges on timing to find suitable placement (Due process followed) • Low staff morale and lack of discipline due to a protracted transition period • Break in trust relationship between staff and management due to the PWC report being confidential

4. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability JOURNEY OF NEW GOVERNING BOARD- ACHIEVEMENTS • Effectively operational Board of Governors • Corporate governance was a major priority for the new Governing Board • Introduction of accountable board committees and regular reporting and monitoring to the Governing Board and relevant stakeholders • Clear understanding and mitigation of organizational risks to ensure we deliver on NSDS 3 and other national strategies • Continuous learning and capacity building to discharge our fiduciary duties with confidence • Unqualified audit report with no emphases of matter • Actively addressing PWC findings through audit committee and special Board mandated task teams

5. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability JOURNEY OF THE NEW GOVERNING BOARD-WORK IN PROGRESS • Concluding on follow up actions from PWC report (Due process followed) • Working closely with NSA and DHET on Section 14A matters • CEO recruitment process in final stages • Continued support to management and staff to deliver on CHIETA mandate

6. 2011\12 Annual Report - Financial and performance information • Strong alignment of CHIETA strategic objectives with government priorities and frameworks to address skills shortages and exposing young people to opportunities in the chemicals sector

7. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability KEY OPERATIONAL CHALLENGES • Sustained delivery with shortage of capacity • Establishing accountability on all collective levels in the organization – this has been rolled out successfully since 2011

8. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability KEY OPERATIONAL ACHIEVEMENTS • Strong alignment of CHIETA strategic objectives with government priorities and frameworks • Strategic allocation of grants within NSDS 3 and national priorities • Re-energize CHIETA Chambers and stakeholder structures • Above average performance deliverables against pre- determined targets • CHIETA met and exceeded 82% of its 96 organizational targets • Exceeded targets in number of employed and unemployed learnerships entered and certificated

9. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability KEY OPERATIONAL ACHIEVEMENTS CONTINUED • Exceeded organisational target on artisans employed and unemployed entered • Exceeded organisational target on FET, Partnerships, Workplace experience, support to co-ops and small businesses and career guidance • Comprehensive organisational risk management policy framework in place to mitigate external and internal risk • Maintaining our green status with SAQA on the CHIETA learner record database • Sustained and increased levy income • CHIETA rural presence at FET colleges • Finalization of a CHIETA compliance register

10. 2011\12 Annual Report - Financial and performance information

11. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA Audited Performance Information 2011-12

12. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA Audited Performance Information 2011-12

13. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA Audited Performance Information 2011-12

14. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS • UNQUALIFIED AUDIT REPORT – 11 Consecutive years • Full Compliance with Laws and Regulations • No material findings on performance information • 11,3% increase in SDL income from R297 million for the year ended March 2011 to R330 million for the year ended March 2012 • Grant expenses increased by 9.7% from R239 million in 2011 to R262 million in 2012 and accounted for 91% of grant levy income received • Average grant disbursement rate of over 90% for entire period since inception

15. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS • DG reserves – 99,9% committed as at 31 March 2012 • Over R45 million (Return on investment – R20m, Admin savings – R7m, Unclaimed MG – R18m) transferred to DG Reserve for strategic sector skills priorities • Administration expenses remained well within 10% legislated provision • Savings of over R7 million realised on administration funds – representing 17% of total admin provision

16. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability • NET SURPLUSES FOR THE 2011-12 FINANCIAL YEAR AND ALLOCATION OF FUNDS AVAILABLE ON DG RESERVE

17. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

18. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS

19. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS

20. SDL Income VS Employer Grants and Project Expenses 300 000 250 000 200 000 R'000 150 000 100 000 50 000 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 26 295 90 082 104 647 113 025 126 043 135 943 153 846 165 389 208 587 235 076 260 105 288 497 SDL for Grants (70%) 23 159 70 253 76 627 116 390 91 844 196 204 141 560 122 125 152 742 242 921 239 443 262 584 Employer Grant and Project Expenses 88% 78% 73% 103% 73% 144% 92% 74% 73% 103% 92% 91% Grants and Projects exp % YEAR CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS

21. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability • PARTNERSHIPS & AGREEMENTS WITH FET's,UoT's & HETs 21

22. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability • PROGRESS ON IMPLEMENTATION OF RPL Fully Implemented Credible RPL process at CHIETA for Artisans / Learning Programs

23. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability • WORK INTEGRATED LEARNING – CURRENT CONTRACTUAL COMMITMENTS to 30 SEPTEMBER 2012

24. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability • SETA PRESENCE IN RURAL AREAS & TOWNSHIPS – OPENING OF OFFICES • The CHIETA concluded a Memorandum of Understanding with the Enhlanzeni Public FET College on the 28 September 2012 • The official opening of the offices by the CHIETA as the lead SETA was on the 01 October 2012 • The CHIETA is also in the process of establishing its presence in the other 5 Campuses in Mpumalanga. • The CHIETA is also supporting 15 other lead SETA’s in rural and township areas

25. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability • COMMITTED NUMBER OF LEARNING PROGRAMMES

26. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability • LIST OF RURAL DEVELOPMENT PROGRAMMES

27. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability • LIST OF RURAL DEVELOPMENT PROGRAMMES

28. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability THANK YOU