Annual Performance Plan

Fasset APP 2014/15: Draft v3_27Aug2013

Draft

Fasset Annual Performance Plan

April 2014 to March 2015

30 August 2013 Contents Fasset APP 2014/15: Draft v3_27Aug2013 ACRONYMS

AMG Assessor and Moderator Grant APP Annual Performance Plan B-BBEE Broad-Based Black Economic Empowerment CSS Customer Satisfaction Surveys CTA Certificate in the Theory of Accounting DHET Department of Higher Education and Training DoL Department of Labour EEA Employment Equity Act of 1998 EEP Employment Equity Plan EGS Employer Grant Support Exco Executive Committee Fasset Finance and Accounting Sector Education and Training Authority FET Further Education and Training Large Employers employing 150 people and above LCGs Learnership Cash Grants LL Lifelong Learning M&E Monitoring and Evaluation Medium Employers employing between 50 and 149 people MHET Minister of Higher Education and Training MTEF Medium Term Expenditure Framework NA Not Applicable NSF National Skills Fund NSFAS National Students Financial Aid Scheme NCV National Certificate (Vocational) NQF National Qualifications Framework NSDS National Skills Development Strategy NSF National Skills Fund PFMA Public Finance Management Act of 1998 PIVOTA Professional, Vocational, L Technical and Academic Learning Programme Public Services Sector Education PSETA and Training Authority Quality Council for Trades and Occupations QCTO QMS Quality Management System SAICA South African Institute of Chartered Accountants SCG Strategic Cash Grants SDA Skills Development Act No. 97 of 1998 (as amended) SDL Skills Development Levy SDLA Skills Development Levies Act of 1999 (as amended) Seta Sector Education and Training Authority Small Employers employing between 1 and 49 people SMMEs Small, Medium and Micro Enterprises SARS South African Revenue Service SIC Standard Industrial Classification Code Code SSP Sector Skills Plan UoT University of Technology WRP Work Readiness Programme WSP Workplace Skills Plans Fasset APP 2014/15: Draft v3_27Aug2013 FOREWORD

It is with pleasure that the Finance and Accounting Services Seta (Fasset) Board submits to the Department of Higher Education and Training (DHET), the Annual Performance Plan (APP) for Fasset, for the period 1 April 2014 to 31 March 2015. Fasset is a public entity listed in Part A of Schedule 3 of the PFMA, established in accordance with Section 9 of the Skills Development Act No. 97 of 1998 (as amended) (hereinafter referred to as the SDA) and having all the powers granted to it in terms of the Act.

The scope of coverage of Fasset is the financial and accounting sector, as determined by the Minister of Higher Education and Training (MHET) in terms of section 9(2) of the SDA, read in conjunction with Government Gazette No 33756, RG 9417, No R1055 of 11 November 2010.

The APP has been prepared in accordance with the National Treasury Framework for Strategic Plans and Annual Performance Plans (August 2010). It is submitted in accordance with the requirements of the DHET, the Public Finance Management Act (PFMA) of 1998, National Treasury regulations and the Fasset Constitution. In line with these requirements, Fasset has developed a Materiality and Significance Framework. In preparing this APP, we have taken into account the newly gazetted funding regulations, which govern the Setas levy grant system. The changes outlined in the new regulations have been incorporated and reflected in our budgeting and skills programme interventions.

This APP is aligned to and guided by the Fasset Strategic Plan for 2012 to 2017. It represents priorities and programmes that will be pursued in the 2014-2015 financial year. The APP serves as the operational tool that is used to arrange and allocate resources, functions and responsibilities in order to meet Fasset’s strategic objectives for the financial year, whilst ensuring that PFMA and good corporate governance structures and practices are maintained.

Essential aspects of the APP include an updated situational analysis, revisions to legislative and other mandates, an overview of the 2014-2015 budget and Medium Term Expenditure Framework (MTEF) estimates as well as performance targets for the year. Outcomes and success indicators aligned to the NSDS III are also included as the basis upon which Fasset will deliver its strategic objectives.

As the Fasset Board, we endorse this Annual Performance Plan and look forward to working with DHET and delivering against NSDS III in the coming year for the benefit of our stakeholders and the country.

______Fasset Chairman SIGN-OFF

This APP is submitted by Fasset, the Finance and Accounting Services Seta.

It was prepared by Fasset and forms part of the Strategic Plan for 2012 - 2017. The APP reflects the operational plans, programmes and deliverables that Fasset will pursue in fulfilment of the strategic goals and objectives that have been set by the Fasset Board for the 2014 – 2015 financial year.

It is signed-off as follows:

Chief Financial Officer:

Janine du Plessis Signature: ______Date: ______

Chief Executive Officer:

Cheryl James Signature: ______Date: ______

Chairman:

Sipho Sono Signature: ______Date: ______Fasset APP 2014/15: Draft v3_27Aug2013 A. STRATEGIC OVERVIEW

UPDATED SITUATIONAL ANALYSIS

The institutional environment within which Fasset developed this APP is outlined in great detail in the SSP and summarised in the Strategic Plan for 2012 to 2017. Since the SSP Update for 2012 to 2017 was prepared, there has been a fundamental change to the funding regulations, which govern the Seta levy grant system. Our strategic planning and budgeting processes have therefore taken into account this change in our operating landscape. Fasset’s ability to achieve its performance objectives in the coming financial year take into account the performance delivery environment, as summarised below, and is in line with our organisational capacity.

1.1 Performance Delivery Environment

In 2012, there were 3 839 levy-paying organisations on Fasset’s database of organisations, registered with the SETA. In addition to these there were 562 levy-exempt organisations. These include 559 that were exempt from levy payments, because their payrolls were smaller than R500 000 per year and three government departments. The estimate of the total number of organisations in the sector, based on the weighted sample, is 4 2541. The vast majority (91.8%) of the organisations in the sector are small – they employ fewer than 50 people. The organisations are highly concentrated in the Gauteng and Western Cape provinces. Not many Black professionals in the sector have so far ventured into their own practices or businesses and as a result, the majority (73.4%) of the organisations in the sector are owned by White people. The fully White-owned organisations employ 36.7% of the employees in the sector. Only 10.8% of the organisations are owned by African, Coloured or Indian owners and they employ only 5.0% of the employees in the sector.

The Fasset sector is largely a professional service sector, which employs mainly highly skilled workers with the majority (68.6%) of employees in the sector holding post-school qualifications. Eight per cent hold national certificates, 9.9% have national diplomas, 24.3% have first degrees and higher diplomas and 21.4% have honours degrees. A total of 3.4% of the employees in the sector have master’s degrees and 1.6% have doctoral degrees. A further 27.8% of the employees have National Senior Certificates (Grade 12 or matric). Only 3.6% of the total workforce has qualifications below Grade 12. The qualifications required are linked to the occupational composition of the sector. Professionals form the largest occupational group, with 36.5% of the workforce employed in professional occupations. The second largest occupational group is Clerical Support Workers (28.4%), followed by Technicians and Associate Professionals (17.5%) and

1 The small difference between the number of organisations in the sample frame and the estimated number based on the weighted sample can be attributed to the fact that levy amounts were used to calculate weights and not the number of organisations in each sampling category. Managers (13.9%).

Financial skills are used across the economy and Fasset’s sector is, to a large extent, a training sector that supplies qualified financial professionals to the rest of the economy. Skills shortages experienced in Fasset’s sector touch on the core of the activities of the sector – i.e. core professional financial skills. Without these skills the growth of the sector may be stifled. Financial skills shortages in the rest of the economy exacerbate the skills shortage situation in Fasset’s sector and increase the pressure on the professional bodies and organisations in the sector that serve as training organisations to increase the numbers of financial professionals available to the South African labour market. Fasset’s role as an incubator sector and its cross-sectoral responsibilities, as well as the need for further transformation of the sector has been taken into account by the Fasset Board at its strategic planning session and has identified Fasset’s role as the incubator sector for financial skills as one of the priority areas.

Since its inception Fasset has undertaken various special skills development initiatives to speed up skills development in its sector. These initiatives include: qualification and learnership development; discretionary grants; the lifelong learning programme; special projects; programmes to improve mathematics education at school level; bridging programmes for first-year students at universities; support for learners who had to re-write professional qualifying exams and work- readiness programmes for young graduates. Despite the growth in Further Education and Training (FET) and Higher Education and Training (HET) qualifications and skills interventions in the workplace, the sector still faces supply-side constraints. These include a lack of funding for higher education studies and a general lack of work-readiness of young graduates who want to enter the labour market. Together with its network of professional bodies, Fasset is well-positioned to play a major role in alleviating cross-sectoral skills shortages.

1.2 Organisational Environment

Our staff complement has grown to 27 with additional people appointed during the 2013 – 2014 financial year to address growing operational requirements. The permanent team is kept to the minimum for the implementation and maintenance of core functions as defined by the SDA, and is tasked with implementing strategies and policies outlined in the legislation and agreed to by the Fasset Board. This is in line with Fasset’s commitment to ensuring that the highest possible proportion of the levy is allocated to skills development interventions rather than administrative processes.

Non-core functions such as Internal Audit, Information Technology (IT), Call Centre and Finance are outsourced and specific expertise is procured as and when required. This approach has enabled us to consistently deliver on our mandate and will continue to shape our delivery plan over the next five-year period. In alignment with this approach, we have a Recruitment and Selection Policy and an Employment Equity Plan (EEP) that drives human resources management.

We rely on the knowledge and training of our employees to fulfil the obligations of our mandate. Through our Education and Training Policy, we ensure that our staff is upskilled to meet their Fasset APP 2014/15: Draft v3_27Aug2013 development potential and capacitated to deliver on Fasset’s strategic objectives. The Fasset team has remained stable since its inception, growing proportionately over time and is characterised by several long-serving team members. This has ensured that the institutional knowledge of the organisation is retained. Our mode of operation includes a multi-skilling approach that provides opportunities for exposure to a variety of work assignments and enables us to manage in times of operational constraints.

The current skills capacity described above is well-poised to meet the operational requirements to enable Fasset to effectively deliver on its mandate as contained in this delivery plan for the upcoming financial year.

2. REVISIONS TO LEGISLATIVE AND OTHER MANDATES

2.1 Legislative Mandate

Fasset operates in terms of the SDA, which makes provision for the establishment of Setas for each national economic sector as well as the Skills Development Levy Act of 1999 (as amended), which introduced programmes and funding policies designed to increase investment in skills development. These pieces of legislation provide an institutional framework for the Seta to develop and implement national, sectoral and workplace strategies in order to develop and improve the skills of the national workforce resulting in improvements in employability and productivity, whilst contributing to the competitiveness of the country.

The Skills Development Amendment Act was gazetted in May 2012. We have ensured that we are fully aligned to the gazetted SDA. Furthermore, the Setas Grant Regulations Regarding Monies Received by a SETA and Related Matters, which was gazetted on 3 December 2012 and came into effect on 1 April 2013, has also been taken into account in our budgeting and skills programme interventions. Detail on this is included in the relevant sections of this APP. Other relevant legislative requirements which Fasset is cognisant of in ensuring that good governance structures and practices such as the PFMA and the National Qualifications Framework (NQF) Act are maintained in executing the Seta mandate.

2.2 Policy Mandates

Fasset’s strategic goals and outcomes are aligned to the National Skills Development Strategy NSDS III, the Human Resources Development Strategy for South Africa (HRDS-SA), which outlines the human resources development strategy for the country; the Medium Term Strategic Framework (MTSF), which is a broad government framework that indicates economic growth drivers as well as the National Skills Accord, brokered between Government, Labour, Business and Civil Society to speed up the skilling of young South Africans as a key element of Government’s New Growth Path (NGP) has been taken into account. The National Development Plan (NDP) 2030, which is aimed at growing an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society, has also shaped the policy imperatives taken into account.

There are no updates to Fasset’s policy mandate since the drafting of the 2012 – 2017 Strategic Plan. As such, Fasset will continue to focus on the key components of our SSP, for example, on the continued promotion of the skills development strategy, the delivery of effective projects that impact on the skills needs of our sector, and beyond, across the post schooling system pipeline and on placing particular emphasis on driving the transformation agenda to ensure that more African Black people and people with disabilities are assisted to gain access to the sector and that Broad-Based Black Economic Empowerment (B-BBEE) imperatives are addressed in all our interventions. A continued focus on tracking the impact of our skills development interventions will also be maintained.

2.3 Ministerial Imperatives

In addition to legislative and policy mandates, we will also address imperatives as identified by the Minister of Higher Education and Training and the Portfolio Committee on Higher Education and Training. These are aimed at ensuring that the NSDS III goals are addressed robustly for effective implementation. These imperatives have been incorporated into the programmes and interventions that Fasset will implement in the realisation of the NSDS III goals, outcomes and outputs, which we have adopted as our strategic objectives. Target and budget information related to these imperatives are included in Part B of this APP.

OVERVIEW OF 2014-2015 BUDGET AND MTEF ESTIMATES

The main source of revenue for the upcoming year continues to be the Skills Development Levy (SDL) as a key input to Fasset as a public entity, paid by employers (equivalent to 1% of payroll) in accordance with the SDLA as amended. As a Seta, we are allocated 80% of the levies of employers that are registered with Fasset (in line with the SIC codes that belong to Fasset). An additional 25.5% of levies is received from Government Departments falling within the Fasset sector in line with a directive from the Department of Public Service and Administration (DPSA) that 30% of the 1% payroll of Government Departments should be allocated to Setas for skills development, which is split between Fasset (25.5%) and the Public Sector Seta (4.5%).

Funding allocation for the 2014/15 financial year was approved by the Fasset Board as indicated in Table below in line with the new funding regulations, strategic direction and principle decisions adopted as follows:  20% is paid out in terms of the legislated Mandatory Grants.  Any unclaimed Mandatory Grants will be transferred to the discretionary fund pool.  80% is allocated to discretionary funds and this is used for PIVOTAL programmes and other strategic interventions as detailed in the Strategic Plan.  Of Fasset APP 2014/15: Draft v3_27Aug2013 the 25.5% contribution received from Government Departments, 22.95% will be allocated to discretionary funding and 2.55% allocated to the administration budget  Any savings or surplus money is transferred to the discretionary fund pool and these funds are then used for strategic projects at the Board’s discretion.

Funding allocation for the 2014-2015 financial year has been approved by the Fasset Board as depicted in Table 1 below.

Table 1: Allocation of funds Allocation Item Income (in Rands) Expenditure (in Rands) Income (80% levy income) (including levies received from Government departments) 442,599,942

Admin expenditure (including Capex) (38,443,799 + 1,000,000 + 2,616,161) Original Admin + Research + QCTO

42,059,960 Mandatory Grants

83,717,137 Annual Research (included in Admin expenditure)

0 PIVOTAL Programmes Learnership Cash Grant (LCG)

8,000,000 NSFAS Loan Repayment Grant

21,000,000 Bridging Programmes for • Access to Higher Education • Academic Programmes Leading to Academic/Professional Body Qualifications and Designations • Access to Employment (Work Readiness Programmes) • Bridging programmes for academic and professional body qualifications outside the Fasset sector

5,600,000 50,000,000 81,560,000 40,000,000 FET College Interventions

30,000,000 PIVOTAL Grant (Internships, Learnerships and Qualifications)

38,000,000 Discretionary Programmes Lifelong Learning (LL) interventions

21,000,000 Strategic Communication

3,600,000 Assessor and Moderator Grant (AMG)

300,000 FET Infrastructure

12,000,000 PIVOTAL Grant (Non-PIVOTAL internships, learnerships and qualifications)

2,000,000 TOTAL 442,599,942 442,599,942

The table 2 below indicates the funding split between PIVOTAL and Discretionary programmes for the 2014-2015 financial year in line with the new funding regulations for a minimum of 80% funding to be allocated to PIVOTAL programmes.

Table 1: Grant Regulation funding allocations

Funding Window % Split Funding Split (000) PIVOTAL Grants/programmes 88% 274,100 Discretionary Grants/programmes 12% 38,900 TOTAL 100% 313,000,000

3.1 Expenditure Estimates

The budget and MTEF expenditure estimates are presented in Table 3 below together with the administration budget and forecast for 2014 – 2015 and over the MTEF.

Table 2: Budget and MTEF Estimates Fasset APP 2014/15: Draft v3_27Aug2013 2014/15 2015/16 2016/17 2017/18 2018/19

INCOME Levy income (80%) 418 585 687 447 886 685 479 238 753 512 785 465 548 680 448 Admin Levies received (10.5%) 54 939 371 58 785 127 62 900 086 67 303 092 72 014 309 Discretionary Levies received (49.5%) 258 999 894 277 129 886 296 528 978 317 286 007 339 496 027 Mandatory Levies received (20%) 104 646 422 111 971 671 119 809 688 128 196 366 137 170 112 Levies received Government Departments 10 014 255 10 715 253 11 465 321 12 267 893 13 126 646 Admin Levies 3 338 085 3 571 751 3 821 774 4 089 298 4 375 549 Discretionary Levies 6 676 170 7 143 502 7 643 547 8 178 595 8 751 097 Investment income 14 000 000 11 200 000 8 960 000 7 168 000 5 734 400 Other income TOTAL INCOME 442 599 942 469 801 938 499 664 073 532 221 358 567 541 493

EXPENDITURE Administration Expenses (Total) 42 059 960 45 585 688 49 413 370 53 569 380 58 082 478 Mandatory Grant Expenses (payout % of 80%) 83 717 137 89 577 337 95 847 751 102 557 093 109 736 090 Discretionary Grant Expenses 313 422 845 334 638 913 354 402 953 376 094 886 399 722 926 Pivotal programmes 250 738 276 267 711 130 283 522 362 300 875 908 319 778 341 Other discretionary projects 62 684 569 66 927 783 70 880 591 75 218 977 79 944 585

TOTAL EXPENSES 442 599 942 469 801 938 499 664 073 532 221 358 567 541 493

Surplus - - - - -

DETAIL ADMIN BUDGET 2014/15 2015/16 2016/17 2017/18 2018/19 Description Audit Committee 176 000 190 080 205 286 221 709 239 446 Auditors fees 1 700 000 1 836 000 1 982 880 2 141 510 2 312 831 Bank Charges 48 000 51 840 55 987 60 466 65 303 Board Expenses 192 200 207 576 224 182 242 117 261 486 Board Committee 1 473 923 1 591 837 1 719 184 1 856 718 2 005 256 Brochures 20 000 21 600 23 328 25 194 27 210 Catering & Entertainment 40 500 43 740 47 239 51 018 55 100 Committee Costs 155 280 167 702 181 119 195 608 211 257 ETQA & Leanership function 1 016 652 1 097 984 1 185 823 1 280 689 1 383 144 Internal Audit 517 482 558 881 603 591 651 878 704 029 Insurance 259 000 279 720 302 098 326 265 352 367 Legal fees 170 000 183 600 198 288 214 151 231 283 License fees 3 000 3 240 3 499 3 779 4 081 Marketing 1 641 000 1 772 280 1 914 062 2 067 187 2 232 562 Office Maintenance 771 400 833 112 899 761 971 742 1 049 481 Policies and Procedures 300 000 324 000 349 920 377 914 408 147 Postage 56 900 61 452 66 368 71 678 77 412 Printing 345 000 372 600 402 408 434 601 469 369 Rent 1 428 816 1 543 121 1 666 571 1 799 897 1 943 889 Salaries and Staff related costs 14 326 946 15 759 641 17 335 605 19 069 165 20 976 082 Service Provider Fees 12 557 600 13 436 601 14 377 163 15 383 564 16 460 413 Skills Planning 15 000 16 200 17 496 18 896 20 407 Staff development and training 418 000 451 440 487 555 526 560 568 684 Stationery 80 000 86 400 93 312 100 777 108 839 Strategic Planning 226 000 244 080 263 606 284 695 307 471 Subscriptions 7 500 8 100 8 748 9 448 10 204 Telephone 177 600 191 808 207 153 223 725 241 623 Travel expenses 80 000 86 400 93 312 100 777 108 839 QCTO 2 616 161 2 825 453 3 051 490 3 295 609 3 559 258 Research expenditure 1 000 000 1 080 000 1 166 400 1 259 712 1 360 489 CAPEX 240 000 259 200 279 936 302 331 326 517

TOTAL 42 059 960 45 585 688 49 413 370 53 569 380 58 082 478 3.2 Financial Assumptions

a. The budget is based on the mandate that must be performed: The admin budget does not exceed 10.5%. The mandatory grant is based on 20% at a payout ratio of 80%. All unspent admin and mandatory levies will be used to fund discretionary projects and grants. b. Assumption for salary increases: All current staff will remain with Fasset. Two new positions will be created in 2014/15. Increase will include an inflation-linked component, a performance component and structural adjustments. The budget includes a component of performance bonuses. However, there are no level adjustments planned for staff. c. Inflation scenarios on income: The levy income budget for 2014/15 is based on the income received in 2012/2013 and based on a 9.28% annual increase. d. Inflation of costs: Inflationary increases was applied to some administration costs (stationery, printing, postage, insurance, bank costs) e. Equipment replacement strategy: As per the Fasset policy computer equipment is replaced every three years. Some of the office equipment and furniture and fittings require replacement as they are past their economically useful life. f. The budget presented will enable the Seta to implement its activities. g. Cost saving measures: the admin budget was prepared to comply with the 10.5% legislated requirement. h. Reprioritisation of resources: Not applicable.

3.3 Relating expenditure trends to strategic outcome-oriented goals

Fasset receives levy income from employers who pay SDL levies based on 1% of the payroll. The levy contribution is dependent on the number of employees who are employed by companies. As a Seta, we are allocated 80% of the levies of employers that are registered with Fasset (in line with the SIC codes that belong to Fasset). 10.5% of the levies are used for administration costs. 10% of this allocation is used to run Fasset while the additional 0.5% will be allocated to the QCTO. We ensure that we remain within the administration budget cap at any given time. Any savings or surplus money is transferred to the discretionary fund pool. These funds are then used for strategic projects such as PIVOTAL programmes and other strategic programmes at the Board’s discretion.

The strategic budgets for our implementation departments are expected to increase from last year due to the additional 1% SDL received from Government Departments as per the DPSA directive. Some operational adjustments have been done in line with the changes to the funding regulations, which have had a significant budget implication. B. PROGRAMME AND SUB-PROGRAMME PLANS

Performance targets for the 2014 – 2015 financial year have been set in line with Fasset’s strategic objectives identified in Part B of the Strategic Plan. Programmes, targets and budgets have been put in place to address the NSDS III goals, outcomes and outputs, which have been adopted as the strategic objectives for Fasset. These are reviewed annually as part of the annual strategic planning process to ensure relevance and take into account the dynamics in our operating landscape. The full NSDS III goals, outcomes and outputs are included in tabular format in Annexure 2.

PROGRAMMES

4.1 Strategic objective annual targets for 2014 – 2015

The targets for the financial year and how they relate to the strategic objectives specified in the Strategic Plan are outlined in Table 4 below.

Table 3 Strategic objective annual targets and MTEF

Estimated Audited / Actual Performance Medium-term targets Strategic performance 2013-2014 Objective 2010-2011 2011-2012 2012-2013 2014-2015

1 Establish a Signed updated Commission Produce SSP Commission Commission credible SSP (annual) research, produce Update 2012/13 research, produce research, produce institutional submitted to DoL SSP and submit to (for the period annual SSP annual SSP mechanism for on the 31 August DHET. 2013/2018) and update for update for skills planning 2009 and submit to DHET submission to submission to uploaded on DHET. DHET. ESSA

2 Encouraging Total number of 52 large firms 52 large firms 52 large firms 48 large firms better use of large levy paying (80%) in the (80%) in the (80%) in the (80%) in the workplace- firms in the sector sector submit sector submit sector submit sector submit based skills is 60 (baseline) WSPs. (baseline = WSPs. (baseline = WSPs. (baseline = WSPs. (baseline = development 65 firms) 65 firms) 65 firms) 65 firms)

Target for the 96 medium firms 96 medium firms 96 medium firms 86 medium firms large firms is (60%) submit (60%) submit (60%) submit (60%) submit (80%) 54 WSPs. (baseline = WSPs. (baseline = WSPs. (baseline = WSPs. (baseline = supported through 160 firms) 160 firms) 160 firms) 160 firms) the payment of mandatory grants

1 160 (40%) of 1 160 (40%) of 1 160 (40%) of 1 000 (40%) of small levy paying small levy paying small levy paying small levy paying firms participate in firms participate in firms participate in firms participate in skills development skills development skills development skills development initiatives initiatives initiatives initiatives (baseline = 1 160 (baseline = 1 160 (baseline = 1 160 (baseline = 1 160 firms) firms) firms) firms)

3 Addressing the 28 Total target for the n/a Learners on the Learners on the low level of youth sector is NIL ‘Access to higher ‘Access to higher Estimated Audited / Actual Performance Medium-term targets Strategic performance 2013-2014 Objective 2010-2011 2011-2012 2012-2013 2014-2015

and adult Learners to enter education’ education’ language and ABET levels. bridging bridging numeracy skills to programme: 80 programme: 80 enable additional training

4 Increasing access Target for the Target for the Target for the Target for the Target for the to occupationally- sector is sector is 8700 sector is 11300 sector is 17060 sector is 17060 directed 7 120 Workers to Workers to enter Workers to enter Workers to enter Workers to enter programmes enter learning learning learning learning learning programmes. programmes. programmes. programmes. programmes. Middle level skills

Workers Workers Workers Workers Workers learnerships learnerships learnerships learnerships learnerships entered: 120 entered: 200 entered: 90 entered: 140 entered: 370

Workers Workers entered Workers entered Workers entered Workers entered entered skills skills programmes: skills programmes: skills programmes: skills programmes: 8500 6547 23000 programmes: 7000 12500

Workers Workers Workers Workers Workers successfully successfully successfully successfully successfully completed completed completed completed completed learnerships: learnerships: 100 learnerships: 225 learnerships: 50 learnerships: 70 200

Increasing access Target for the Target for the Target for the Target for the Target for the to occupationally- sector is sector is 8700 sector is 9200 sector is 9150 sector is 9150 directed 7 120 Workers to Workers to enter Workers to enter Workers to enter Workers to enter programmes enter learning learning learning learning learning programmes. programmes. programmes. programmes. programmes. High level skills

Workers Workers Workers Workers Workers learnerships learnerships learnerships learnerships learnerships entered: 120 entered: 200 entered: 3067 entered: 800 entered:3420

Workers entered Workers entered Workers entered Workers entered Workers entered skills programmes: skills programmes: skills programmes: skills programmes: skills 7000 8500 7065 6500 programmes: 6500

Total number of Total number of Total number of Total number of Total number of workers workers workers workers workers completed completed completed completed completed learning learning learning learning learning programmes: programmes: programmes: programmes: programmes: 7200 8600 8361 8155 8155

Workers Workers Workers Workers Workers successfully successfully successfully successfully successfully completed completed completed completed completed learnerships: 200 learnerships: 100 learnerships: learnerships: 267 learnerships: 1736 3090

Workers Workers Workers Workers Workers successfully successfully successfully successfully successfully completed skills completed skills completed skills completed skills completed skills programmes: programmes: programmes: programmes: programmes: 7000 8500 7065 6500 6500 Estimated Audited / Actual Performance Medium-term targets Strategic performance 2013-2014 Objective 2010-2011 2011-2012 2012-2013 2014-2015

5 Encouraging and 1 100 non-levy 1 100 non-levy 1 100 non-levy 500 non-levy supporting paying firms are paying firms are paying firms are paying firms are n/a cooperatives, supported supported supported supported small enterprises, (baseline = 1 100 (baseline = 1 100 (baseline = 1 100 (baseline = 1 100 worker initiated, firms) firms) firms) firms) NGO and community training initiatives

6 Increase public n/a 1) SETA to 1) SETA to 1) SETA to 1) SETA to sector capacity for promote and promote and promote and promote and improved service improve improve improve improve delivery and participation in participation in participation in participation in support the Provinces through: various provincial various provincial various provincial building of a forums. forums. forums. 2) Direct physical developmental presence/ Indirect 2) Accredit govt 2) Accredit govt 2) Accredit govt state permanent depts. and public depts. and public depts. and public physical presence entities as entities as entities as workplace workplace workplace 3) Indirect providers providers providers temporary physical presence/ 3) Placement of 3) Placement of 3) Placement of Non-physical learners on learners on learners on presence learnerships and learnerships and learnerships and learners learners learners 4) PSDF completing completing completing participation Bridging Bridging Bridging 5) PDGS Programmes Programmes Programmes participation 4) Attendance of 4) Attendance of 4) Attendance of Lifelong Learning Lifelong Learning Lifelong Learning

7 Build career and Develop career Develop career Develop career Develop career Develop career vocational guide guide and learner guide and learner guide and learner guide and learner guidance marketing marketing marketing marketing campaign campaign, to campaign to campaign to include include include exhibitions, brand exhibitions, brand exhibitions, brand ambassador ambassador ambassador campaign and campaign and campaign and regional presence regional presence regional presence in rural areas and in rural areas and in rural areas and townships townships townships 4.2 Programme performance indicators and annual targets

Table 4 Programmes and performance indicators and implementation plan for 2014 – 2015

2014 to 2015 Fasset 2014 to 2015 2014 to 2015 # # 2012 to 2017 Fasset Target Fasset Output Target Risks

1 Conduct 1.1 Commission, conduct Commission, conduct research on relevant Relevant research, research research on relevant areas as agreed by Fasset Board, and within the Fasset areas as agreed by distribute to relevant stakeholders and research focus, is Fasset Board, and produce Sector Skills Plan Update for the not available distribute to relevant period Research stakeholders, and conducted is not produce Sector Skills Plan relevant to DHET Update for 2014/15 research agenda DHET Sector Skills Plan format not available

2 Support skills 2.1 13 485 Learners 67425 Learners registered on learnerships, Employers in the development registered on Lifelong Learning (LL), Bridging sector may not initiatives to learnerships, Lifelong Programmes, Assessor interventions and continue to offer produce Learning (LL), Bridging PIVOTAL Programmes learning middle-level Programmes, Assessor opportunities to skills in the interventions and learners sector PIVOTAL Programmes The supply of African learners is insufficient The grant is not adequately subscribed to Grant application forms and systems are not available for employers Employers in the sector may not make use of Fasset Lifelong Learning events Projects appointed fail to recruit required number of learners Insufficient number of delegates attend scheduled events 2014 to 2015 Fasset 2014 to 2015 2014 to 2015 # # 2012 to 2017 Fasset Target Fasset Output Target Risks

2.2 13 161 Learners 65 805 Learners completed learnerships, Employers in the completed learnerships, Lifelong Learning, Bridging Programmes, sector may not Lifelong Learning, Assessor interventions and PIVOTAL continue to offer Bridging Programmes, Programmes learning Assessor interventions opportunities to and PIVOTAL learners Programmes The supply of African learners is insufficient The grant is not adequately subscribed to Grant application forms and systems are not available for employers Employers in the sector may not make use of Fasset Lifelong Learning events Projects appointed fail to recruit required number of learners Insufficient number of delegates attend scheduled events 2014 to 2015 Fasset 2014 to 2015 2014 to 2015 # # 2012 to 2017 Fasset Target Fasset Output Target Risks

2.3 13 161 Learners funded 65 805 Learners funded on learnerships, Employers in the on learnerships, Bridging Bridging Programmes, Lifelong Learning, sector may not Programmes, Lifelong Assessor interventions and PIVOTAL continue to offer Learning, Assessor Programmes learning interventions and opportunities to PIVOTAL Programmes learners The supply of African learners is insufficient The grant is not adequately subscribed to Grant application forms and systems are not available for employers Employers in the sector may not make use of Fasset Lifelong Learning events Projects appointed fail to recruit required number of learners Insufficient number of delegates attend scheduled events 2014 to 2015 Fasset 2014 to 2015 2014 to 2015 # # 2012 to 2017 Fasset Target Fasset Output Target Risks

3 Support skills 3.1 14 073 Learners 70 365 Learners registered on learnerships, Employers in the development registered on Lifelong Learning (LL), Bridging sector may not initiatives to learnerships, Lifelong Programmes, Moderator interventions, continue to offer produce high- Learning (LL), Bridging PIVOTAL and Incubator Programmes learning level skills in Programmes, Moderator opportunities to the sector interventions, PIVOTAL learners and Incubator The supply of Programmes African learners is insufficient The grant is not adequately subscribed to Grant application forms and systems are not available for employers Employers in the sector may not make use of Fasset Lifelong Learning events Projects appointed fail to recruit required number of learners Insufficient number of delegates attend scheduled events 2014 to 2015 Fasset 2014 to 2015 2014 to 2015 # # 2012 to 2017 Fasset Target Fasset Output Target Risks

3.2 11 420 Learners 57 100 Learners registered on learnerships, Employers in the registered on Lifelong Learning (LL), Bridging sector may not learnerships, Lifelong Programmes, Moderator interventions, continue to offer Learning (LL), Bridging PIVOTAL and Incubator Programmes learning Programmes, Moderator opportunities to interventions, PIVOTAL learners and Incubator The supply of Programmes African learners is insufficient The grant is not adequately subscribed to Grant application forms and systems are not available for employers Employers in the sector may not make use of Fasset Lifelong Learning events Projects appointed fail to recruit required number of learners Insufficient number of delegates attend scheduled events 2014 to 2015 Fasset 2014 to 2015 2014 to 2015 # # 2012 to 2017 Fasset Target Fasset Output Target Risks

3.3 11 420 Learners 57 100 Learners registered on learnerships, Employers in the registered on Lifelong Learning (LL), Bridging sector may not learnerships, Lifelong Programmes, Moderator interventions, continue to offer Learning (LL), Bridging PIVOTAL and Incubator Programmes learning Programmes, Moderator opportunities to interventions, PIVOTAL learners and Incubator The supply of Programmes African learners is insufficient The grant is not adequately subscribed to Grant application forms and systems are not available for employers Employers in the sector may not make use of Fasset Lifelong Learning events Projects appointed fail to recruit required number of learners Insufficient number of delegates attend scheduled events

3.4 NSFAS Grant NSFAS Grant Employers in the sector may not Assist 450 learners (who Assist 2250 learners (who have completed continue to offer have completed their their studies and completing their learnerships learning studies and completing as part of their professional qualifications) opportunities to their learnerships as part with payment of their NSFAS loans learners of their professional qualifications) with The supply of payment of their NSFAS Black African loans (baseline = 1050) learners is insufficient The grant is not adequately subscribed to Grant application forms and systems are not available for employers NSFAS administration system is not able to accommodate Fasset payments 2014 to 2015 Fasset 2014 to 2015 2014 to 2015 # # 2012 to 2017 Fasset Target Fasset Output Target Risks

3.5 Recognition of prior Recognition of prior learning for 225 Experience learning for 45 candidates candidates received by learners not sufficient to warrant RPL Learners not aware of the eligible time period in which to apply

3.6 5 firms accredited for 25 firms accredited for internships Limited uptake of internships firms for the accreditation of internship programmes

4 Engage with 4.1 Fasset will engage with Engage with FET institutions to address skills Support and co- FET institutions FET colleges and assess needs in the Fasset sector, as informed by operation from FET opportunities for the Sector Skills Plan colleges is not in accreditation and place participation of learners on specific interventions Inappropriate Seta- funded programmes are put in place

5 Workplace 5.1 48 large firms submit 24 000 large firms submit Mandatory Grants Grant application Support Mandatory Grants (baseline = 65 firms). forms and systems through the (baseline = 65 firms) are available not Mandatory for employers Grant and other The grant is not registration adequately schemes subscribed to

5.2 86 medium firms submit 43 000 medium firms submit Mandatory Grant application Mandatory Grants Grants (baseline = 160 firms). forms and systems (baseline = 160 firms) are available not for employers The grant is not adequately subscribed to 2014 to 2015 Fasset 2014 to 2015 2014 to 2015 # # 2012 to 2017 Fasset Target Fasset Output Target Risks

5.3 Levy-paying SMMEs Levy-paying SMMEs receive support from Grant application receive support from Fasset via sector projects for their skills forms and systems Fasset via sector projects needs are available not for their skills needs for employers 5 000 levy-paying small firms participate in 1 000 levy-paying small skills development initiatives (baseline = 1 The grant is not firms participate in skills 160 firms) adequately development initiatives subscribed to (baseline = 1 160 firms)

5.4 500 non levy-paying firms 25 000 non-levy-paying firms participate in Grant application participate in skills skills development initiatives (baseline = 1 forms and systems development initiatives 100) are available not (baseline = 600) for employers The grant schemes are not adequately subscribed to An insufficient number of non levy-payers choose to register with Fasset

5.5 5 Government 25 Government departments participating in Support and departments participating skills development through payment of the cooperation of in skills development SDL in line with the DPSA directive and government through payment of the deriving benefit from Fasset initiatives departments and SDL in line with the DPSA public entities is directive and deriving not in place benefit from Fasset initiatives

6 Stakeholders 6.1 Marketing materials such Marketing materials such as e-facts, facts are engaged in as e-facts, facts newsletter print, online advertising, Fasset newsletter print, online advertisements, website development, social processes and advertising, media projects advertisements, website development, social media 2014 to 2015 Fasset 2014 to 2015 2014 to 2015 # # 2012 to 2017 Fasset Target Fasset Output Target Risks

7 Career 7.1 Learner marketing Comprehensive occupational profile of the Not all occupations guidance campaign planned and sector, and guide to employment are listed in the campaign is implemented using the opportunities in the sector made available career guide embarked on communication platforms Resources for such as career guidance, effective participation at career engagement with guidance events, print, FETs and electronic and social and universities in the the appointment of various provinces Campus Brand does not Ambassadors materialise

Negative publicity, print, online and social media Impact of the brand ambassadors is not measured Support and cooperation from FET colleges is not in place 4.3 Quarterly Targets

The quarterly targets for the performance indicators that are aligned to NSDS III are outlined in detail and included in Annexure 1.

4.4 Reconciling performance targets with budget and MTEF

Fasset’s primary responsibility remains the delivery and maintenance of fully functional operational systems that include the necessary governance and quality assurance mechanisms. This provides a sound platform for Fasset to play a meaningful role in supporting all our stakeholders in the enhancement of skills development within the sector. The impact of budget allocations on programme performance targets and measures that will be put in place to ensure the realisation of strategic objectives are outlined in Table 6 below.

Table 5: Performance and expenditure trends

Programme Budget Budget Implications and Expenditure Trends

The Mandatory Grant is based on 20%. The budget allocation for Mandatory Grants has been reduced in 83,717,137 Mandatory Grants accordance with the new funding regulations and includes income received from Government Departments

The PIVOTAL Grant has been introduced in line with the new funding regulations. This grant is only available in the 2014 – 2015 financial year to African Black people as part of Fasset’s imperative to drive PIVOTAL grant 38,000,000 the transformation agenda. Claim rates for this grant are dependent on employer uptake of this grant. The Seta’s full allocation of funds will be impacted negatively if the employer uptake of this grant is low.

Only Black African learners and all people with disabilities are eligible for this grant. The uptake of eligible learners by employers for this grant is dependent on the adequate supply of African learners. The budget Learnership Cash Grant 8,000,000 expenditure will be affected should employers in the sector discontinue learning opportunities as a result of the decision to fund Black African people only. Strategic Communication 3,600,000 The budget is based on the approved strategy engagement strategy as well as the national career guidance campaign. As changes in the Seta environment come through such as QCTO and the impact of the new funding regulations, communication plans will be developed, which are likely to have a budget implication. The provincial imperative to establish a regional presence in rural areas and townships will be done through the existing range of interventions with career awareness information disseminated at other existing Seta offices and as part of the Campus Brand Ambassador campaign. Programme Budget Budget Implications and Expenditure Trends

The budget for the learner marketing campaign is based on the approved national learner career guidance strategy. Ad hoc requests for additional career exhibitions and events are often received, which have a budget implication. SARS joined the Fasset sector in 2011/12 and is the largest employer in the sector. A greater number of Lifelong Learning 21,000,000 delegates will therefore have to be accommodated in LL events to cater for the increase in training demand. Funding for Black African people as well as internship accreditation available in the 2014 – 2015 financial Non-PIVOTAL Programmes year to African Black people as part of Fasset’s imperative to drive the transformation agenda. Claim rates (Internships, learnerships and 2,000,000 for these programmes are dependent on employer uptake. The Seta’s full allocation of funds will be qualifications) impacted negatively if the employer uptake of these programmes is low. NSFAS Loan Repayment Grant 21,000,000 The expenditure for this grant is dependent on the uptake of eligible learners The grant is expected to be fully subscribed due to the amendment in the qualifying criteria to encourage Assessor and Moderator Grant 300,000 greater uptake of this grant. Bridging Programmes for: Funding for the year has increased in line with new funding regulations and the DPSA directive in terms of • Access to Higher Education Government departments. Three funding windows have been opened to address the full pipeline in the sector as well as an additional funding window opened to address Fasset’s role as an incubator sector. • Academic Programmes Leading to Greater focus on the provision of academic programmes has therefore been placed, which will require new Academic/Professional Body projects to be put in place and new/ existing relationships with institutional partners to be established Qualifications and Designations and/or maintained. • Access to Employment (Work 177,100,000 Readiness Programmes) • Bridging programme for academic and professional body qualifications outside the Fasset sector The scope of this funding window is subject to Board approval aimed at the capacitation of FET Colleges at FET Funding Window 30,000,000 NQF 4 and above. Funding for FET Infrastructure has been set aside in response to a Ministerial directive. PFMA FET Infrastructure 12,000,000 requirements and governance matters relating to this funding is still awaited pending further instructions on the ministerial directive. C. LINK TO OTHER PLANS

Fasset is cognisant that the economy remains constrained by a severe lack of skills and that significant inroads still need to be made in skills development. In the development of this Strategic Plan, Fasset has therefore taken into account not only the needs of its own sector but also the financial needs of the rest of the economy. The fact that NSDS III is linked to the MTSF, the HRDS-SA, the IPAP, the NGP, the National Skills Accord, sector development plans, Government’s goals for rural development and the new environment strategy will enable Fasset to deliver against national initiatives on a far broader scale going forward. Further alignment has also been made to the NDP 2030, which is aimed at growing an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society.

We will therefore continue with our strategic imperative of providing access to the sector and increasing the number of skilled people whilst at the same time addressing the issue of past imbalances. We will do this through the programmes and interventions articulated in this Strategic Plan for the period 2012 to 2017 as aligned to NSDS III.

Fasset supports the President’s Outcomes Approach to Planning Government’s Work. Of the ten outcomes, Outcome 5, “a Skilled and Capable Workforce to Support an Inclusive Growth Path”, relates directly to the Minister of Higher Education and Training outcomes. Fasset’s contribution towards achieving this outcome is indicated in Table 7 below, where Fasset’s outputs (as aligned to NSDS III) are aligned to the Minister’s outputs as part of our contribution towards reaching the national outcomes. Table 7: Support of the President’s Outcomes Approach to Planning Government’s Work (Outcome 5)

Minister’s # # 2014 to 2015 Fasset Output # 2014 to 2015 Interventions Outcome

1 Increase access 2.3.2.1 350 bursaries (including 80% or 280 external 2 PIVOTAL Grant to programmes bursaries and 70 / 20% internal bursaries) . leading to 3 intermediate and . high-level 2 learning. . 1 . 5

2.3.2.1 Assist 450 learners (who have completed their 2 NSFAS Loan Repayment Grant studies and completing their learnerships as part . of their professional body qualifications) with 3 payment of their NSFAS loans . 2 . 1 . 6

2.3.2.1 Assist 650 learners with the completion of 2 Incubator Programme for the development of professional body qualification for the broader . financial skills across the broader economy economy in Fasset’s capacity as incubator 3 sector . 2 . 1 . 7

2.4.3.2 180 learners undertaking academic articles (120 2 Learners entering and completing academic entering academic articles and 60 completing . articles academic articles) 4 . Minister’s # # 2014 to 2015 Fasset Output # 2014 to 2015 Interventions Outcome

3 . 2 . 1

2 Increase access 5.1.3.1 Learnerships and qualifications will be 5 Learnerships and qualifications will be developed, to occupationally developed, that can be applied cross-sectorally . that can be applied cross-sectorally directed 1 programmes in . needed areas 3 and thereby . expand the 1 availability of . intermediate 1 level skills (with a special focus 2.1.1.1 SSP for 2014 to 2019 has been finalised and 2 Produce SSP Update 2014/15 (for the 2014 to on artisan skills). submitted to DHET . 2019 period) for submission to DHET that 1 includes the identification of middle-level skills, . and the Seta strategies in place to address them 1 . 1 . 1

3 Research, 2.1.1.1 SSP for 2014 to 2019 has been finalised and 2 Produce SSP Update 2014/15 (for the 2014 to Development submitted to DHET . 2019 period) for submission to DHET that and Innovation in 1 includes the identification of middle-level skills, human capital . and the Seta strategies in place to address them for a growing 1 knowledge . economy 1 . 1 Fasset’s Contribution to the PME targets

Fasset will support the Minister’s targets as agreed with the President through a range of skills development interventions as outlined in the performance monitoring and evaluation (PME) targets. These will be included and outlined as the performance monitoring and evaluation (PME) targets once agreed with DHET. D. ANNEXURES

The APP should be read in conjunction with the 2012 – 2017 Strategic Plan as well as following documents to provide a holistic view of the performance indicators and how these will be achieved quarterly in the 2014-15 financial year.

 Annexure 1: Quarterly Targets for 2014 – 2015  Annexure 2: NSDS III Goals, Outcomes and Outputs Annexure 1: Quarterly Targets 2014 – 2015

Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

1 Conduct research 1.1 Commission, conduct research on relevant areas Submit SSP to DHET Make research available as agreed by Fasset Board, and distribute to (annual grant analysis) relevant stakeholders, and produce Sector Skills and distribute to Plan Update for 2014/15 stakeholders Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

2 Support skills 2.1 13 485 Learners registered on learnerships, L Lifelong Learning Lifelong Learning Learners on learnerships development Lifelong Learning (LL), Bridging Programmes, if 3250 delegates 3250 delegates 370 learners on initiatives to Assessor interventions and PIVOTAL e learnerships produce middle- Programmes l level skills in the o Lifelong Learning sector n 3250 delegates g L Bridging Projects e 80 Bridging Project a learners r n 35 Assessors i n g 3 2 5 0 d e l e g a t e s Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

2.4 13 161 Learners completed learnerships, Lifelong L Lifelong Learning Lifelong Learning Completed Learning, Bridging Programmes, Assessor if 3250 delegates 3250 delegates 70 learners on interventions and PIVOTAL Programmes e learnerships l o Lifelong Learning n 3250 delegates g L Assessor Grant e 35 Assessors a r n i n g 3 2 5 0 d e l e g a t e s C o m p l e Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

3 Support skills 3.1 14 073 Learners registered on learnerships, P PIVOTAL Grant PIVOTAL Grant Learners on learnerships development Lifelong Learning (LL), Bridging Programmes , I 75 bursaries paid out 100 75 bursaries paid out 100 3420 learners on initiatives to Moderator interventions and PIVOTAL V learners on learnerships learners on learnerships learnerships produce high-level Programmes O skills in the sector T Lifelong Learning A 6500 delegates L G Bridging Programmes r 1500 bridging a programme learners for n work readiness, 1400 for t academic programmes 1 and 650 incubator 5 programmes 0 PIVOTAL Grant b u 50 bursaries paid out 38 r learners on learnerships s Assessor and Moderator a Grant ri e 10 Moderators s p a i d o u t 2 0 0 l Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

3.2 11 420 Learners completed on learnerships, C PIVOTAL Grant PIVOTAL Grant Completed Lifelong Learning (LL), Bridging Programmes, o 75 bursaries paid out 100 75 bursaries paid out 100 3090 learners on Moderator interventions and PIVOTAL m learners on learnerships learners on learnerships learnerships Programmes p l Lifelong Learning e 6500 delegates t e Assessor and Moderator d Grant 1 10 Moderators 0 PIVOTAL Grant 5 0 50 bursaries paid out 38 b learners on learnerships ri d g i n g p r o g r a m m e l e a r n Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

3.3 NSFAS Grant N NSFAS Grant NSFAS Grant NSFAS Grant S Assist 450 learners (who have completed their Assist 100 learners Assist 100 learners Assist 200 learners F studies and completing their learnerships as part assisted assisted A of their professional qualifications) with payment S of their NSFAS loans (baseline = 1050)

G r a n t A s s i s t 5 0 a s s i s t e d

3.4 Recognition of prior learning for 45 candidates Recognition of prior learning for 45 candidates Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

3.5 5 firms accredited for internships 5 firms accredited for internships Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

4 Engage with FET 4.1 Fasset will engage with FET colleges and assess 2 250 delegates attend Research report on 150 FET Graduates institutions opportunities for accreditation and participation of 5 learner and lecturer qualification analysis placed learners on specific interventions 0 enrichment programme 250 delegates attend 250 delegates attend d learner and lecturer learner and lecturer e enrichment programme enrichment programme l e 20 learners and lecturers g completed qualification a programmes t e s a tt e n d l e a r n e r a n d l e c t u r e r Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

5 Workplace Support 5.1 48 large firms submit Mandatory Grants (baseline 2 15 large firms 8 large firms through the = 65 firms) 5 Mandatory Grant l and other a registration r schemes g e fi r m s

5.2 86 medium firms (60%) submit Mandatory Grants 4 26 medium firms 20 medium firms (baseline = 160 firms) 0 m e d i u m

fi r m s Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

5.3 40% of levy-paying SMMEs receive support from 2 250 levy-paying small 250 levy-paying small 250 levy-paying small Fasset via sector projects for their skills needs 5 firms firms firms 0 1 000 levy-paying small firms participate in skills l development initiatives (baseline = 1 160 firms) e v y - p a y i n g s m a ll fi r m s Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

5.4 500 non levy-paying firms participate in skills 1 100 non levy-paying 100 non levy-paying 150 non levy-paying development initiatives (baseline = 600) 5 firms firms firms 0 n o n l e v y - p a y i n g fi r m s Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

5.5 Government departments participate in skills 5 development through payment of the SDL and G deriving benefit from Fasset initiatives o v t d e p t s . S u b m it W S P s / A T R s

6 Stakeholders are 6.1 Marketing materials such as e-facts, facts Material developed engaged in Fasset newsletter print, online advertising, processes and advertisements, website development, social projects media Q u a 2014 to 2015 r # # Fasset 2014 to 2015 Intervention Quarter 2 Quarter 3 Quarter 4 Fasset Output t e r 1

7 Career guidance 7.1 Learner marketing campaign planned and O Ongoing implementation Ongoing implementation Ongoing implementation campaign is implemented using the following: n of planned interventions of planned interventions embarked on g - Career Guide o Development and i Update n g i m p l e m e n t a ti o n o f p l a n n e d i n t e r v ANNEXURE 2: NSDS GOALS, OUTCOMES AND OUTPUTS

# NSDS Goal # NSDS Outcome # NSDS Output 1 Establishing a credible institutional mechanism for skills planning 1.1 National need in relation to skills development is researched, documented and communicated to enable effective planning across all economic sectors 1.1.1 Capacity is established within the DHET to coordinate research and skills planning

1.1.2 Sector Skills Plans are professionally researched, provide a sound analysis of the sector and articulate an agreed sector strategy to address skills needs

1.1.3 Sector and nationally commissioned research and data is analysed, validated and captured in an integrated database that is accessible to stakeholders 2 Increasing access to occupationally-directed programmes 2.1 Middle-level skills needs are identified and addressed in all sectors 2.1.1 Setas research and identify middle-level skills needs in their sectors and put in place strategies to address them, particularly through the use of the public Further Education and Training (FET) colleges and universities of technology working in partnership with employers providing workplace-based training

2.2 10,000 artisans per year qualify with relevant skills and find employment 2.2.1 Setas establish projects and partnerships to enable the relevant number of artisans for their sector to be trained, to qualify and become work-ready

2.2.2 The National Artisan Bridging Project developed by Joint Implementation Plan for Skills Acquisition (JIPSA) and located in the DHET and a Monitoring and Evaluation (M&E) framework, is planned, managed and reported on, with interventions made where blockages occur.

2.3 High-level national scarce skills needs are being addressed by work-ready graduates from higher education institutions 2.3.1 Sector Skills Plans identify the supply challenges in relation to high-level scarce skills gaps and set out strategies for addressing them

2.3.2 Agreements are Entered into between Setas, university faculties and other stakeholders on appropriate interventions to support improved entry to priority programmes, increased work experience and experiential learning for students and access to post-graduate work.

2.4 Relevant research and development and innovation capacity is developed and innovative research projects established 2.4.1 Sector Skills Plans identify the focal areas for research, innovation and development

2.4.2 Agreements are Entered into between Setas, university faculties and other stakeholders on flagship research projects linked to sector development in a knowledge economy

2.4.3 Programmes are put in place that focus on the skills needed to produce research that will be relevant and have an impact on the achievement of economic and skills development goals. 3 Promote the growth of a public FET college system that is responsive to sector, local, regional and national skills needs and priorities 3.1 The National Certificate (Vocational) (NCV) and N-courses are recognised by employers as important base qualifications through which young people are obtaining additional vocational skills and work experience, entering the labour market with marketable skills, and obtaining employment 3.1.1 The NCV is reviewed with inputs from stakeholders and the curriculum is revised to ensure that it provides a sound foundational basis for building labour market relevant skills 3.1.2 The programmes offered to meet industry needs, including those supporting apprenticeships and N-courses, are reviewed, updated and made available to and accessed by employers

3.1.3 A highly articulated system of qualifications between the FET and universities programmes

3.2 Partnerships between DHET, Setas, employers, private providers and public FET colleges are resulting in increased capacity to meet industry needs throughout the country 3.2.1 The capacity of FET colleges to provide quality vocational training is reviewed. Each college has a Strategic Plan in place to build capacity and engage in skills development programmes, including programmes offered in partnership with employers.

3.2.2 Setas identify FET colleges with relevant programmes and put in place partnerships to offer vocational courses and work experience for college learners.

3.3 The academic staff at colleges are able to offer relevant education and training of the required quality 3.3.1 The capacity of college educators to deliver programmes is reviewed. Skills development programmes, including work placement opportunities, are devised to meet the needs of the college educators 4 Addressing the low level of youth and adult language and numeracy skills to enable additional training 4.1 A national strategy is in place to provide all young people leaving school with an opportunity to engage in training or work experience, and improve their employability 4.1.1 A DHET-led process, including stakeholders, develops a strategy supported by all stakeholders.

4.1.2 A national database tracks training and work opportunities, and reports on implementation of the strategy

4.1.3 The DHET partners with stakeholders in the youth sector to put in place training and work experience projects for young people 5 Encouraging better use of workplace-based skills development 5.1 Training of employed workers addresses critical skills, enabling improved productivity, economic growth and the ability of the work force to adapt to change in the labour market 5.1.1 SETA stakeholders agree on the provision of substantial quality programmes for employed workers and report on the impact of the training.

5.1.2 Sector projects are put in place to address specific sector skills gaps.

5.1.3 Cross-sectoral projects are established to address skills needs along local supply chains aimed at supporting local economic development 6 Encourage and support cooperatives, small enterprises, worker initiated, NGO and community training initiatives 6.1 Cooperatives supported with skills training and development expand and contribute to sector economic and employment growth 6.1.1 Setas identify in their skills planning research, established and emergent cooperatives and their skills needs

6.1.2 Sector projects are established by sector stakeholders, supported by the NSF

6.1.3 A national database of cooperatives supported with skills development is established and the impact of training reported on

6.2 Partnership projects to provide training and development support to small businesses are established in all sectors and their impact reported on 6.2.1 Setas, through their skills planning research, identify the skills needs of small and emerging businesses in their sector, and promote relevant programmes.

6.2.2 Sector projects are developed that are piloted by Setas and expanded through partnership funding.

6.2.3 A national database of small businesses supported with skills development is established and the impact of training reported on.

6.3

Worker, NGO and community‐based education programmes are supported and their impact measured and reported on

6.3.1 Setas engage with trade unions, NGOs and community-based organisations in their sector and identify skills needs and strategies to address needs.

6.3.2 Setas establish quality pilot projects. 6.3.3 Stakeholders expand successful projects with support from the NSF. 7 Increase public sector capacity for improved service delivery and supporting the building of a developmental state 7.1 A thorough analysis and reflection is conducted on provision of education and training within the public sector and the contribution of the various role players 7.1.1 Setas with responsibility for public sector training conduct analysis and reflection on achievements and challenges. Fasset will conduct an analysis of achievements and challenges on organisations within the Fasset scope

7.1.2 DHET leads a discussion on factors impacting on provision and publishes proposals on improving the institutional framework for public sector education and training.

7.2 Education and training plans for the public sector are revised and programmes are implemented to build capacity 7.2.1 Sector Skills Plans set out the capacity needs of relevant departments and entities.

7.2.2 Plans and funding arrangements are agreed between the relevant departments/entities and the Setas, and are reported on. 8 Building career and vocational guidance 8.1 Career paths are mapped to qualifications in all sectors and sub-sectors, and communicated effectively, contributing to improved relevance of training and greater mobility and progression 8.1.1 Career guides are developed with labour market information from Setas, addressing sub-sectors within their sector.

8.1.2 Sector stakeholders are engaged and programmes are adjusted to meet the skills and qualification needs to promote comprehensive career development