Click to edit Master subtitle style 9/10/10 111 Report on PSETA Presentation to Portfolio Committee on Public Service and Administration 8 September 2010

Click to edit Master subtitle style

9/10/10 111

Report on PSETA

Presentation toPortfolio Committee on Public Service and

Administration

8 September 2010

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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

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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

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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

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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)

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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)

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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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Function dpsa pseta palama

Learnerships (learning programmes)

Norms & standards:Polices, guidelines, M&E, targets

Accreditation & QA ; establish learning programmes;Register agreementsMonitor provision

Training &Assessment of learning

Internships Norms & standards:Polices, guidelines, M&E, targets

Reporting to DHET Learner certification

Workplace learning with respect to PSA and PS Regs


Monitor provision;Accreditation

Assessment of learning;Development of Training programmes

E-learning Norms & standards:Polices, guidelines, M&E, targets

Accreditation Develop & offer e-learning training programmes

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Function dpsa pseta palama

Recognition of Prior Learning


QA & Certification Coordinate assessment

ABET Norms & standards:Polices, guidelines, M&E, targets

QA & certification & monitoring provision

FETC and HEI Partnerships


QA & certification & monitoring provision; MoUs

MoUs, Programme evaluation; QA & certification

Partnerships with Professional Bodies




HR Planning and Supply Management


Sector Skills Plans Co-ordination of training

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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DHET, DPSA & NT Task Team

Task team regarding PSETA set up to deal with among others

• Role of PSETA vis-à-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

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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

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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)

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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%)

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2010/11• Transfer amount for PSETA = R19 993• When PSETA provides written

assurance, DPSA will transfer funds on quarterly basis based on projections

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End

Documents

Click to edit Master subtitle style 9/10/10 111 Report on PSETA Presentation to Portfolio Committee on Public Service and Administration 8 September 2010