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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
1
Annual Report2018/2019
2
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
CETA GENERAL INFORMATION
Registered name Construction Education and Training AuthorityISBN number 978-0-621-47395-7RP number 147/2019Registered office address 183 Kerk Street (Cnr Old Pretoria Main Road),
Halfway House, Midrand, 1685Contact telephone numbers +27 11 265 5901Email address [email protected] address www.ceta.org.za
EXTERNAL AUDITOR’S INFORMATION
Auditor-General of South AfricaPhysical address 300 Middel Street
New MuckleneukPretoria, South Africa
Postal address Box 446Pretoria0001
Telephone +27 12 426 8000Fax +27 12 426 8257BANKER’S INFORMATIONStandard Bank 5 Simmonds Street
Johannesburg 2001
Vision
To be a firm pillar of all in
construction and nation building.
Values
Responsiveness
Respect
Integrity
Professionalism
Mission
To create a solid skills base as
a foundation for infrastructural
development and economic
empowerment.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
1
PART A: GENERAL INFORMATION 31. ABBREVIATIONS AND ACRONYMS 4
2. FOREWORD BY THE CHAIRPERSON OF THE ACCOUNTING AUTHORITY 6
3. CHIEF EXECUTIVE OFFICER’S OVERVIEW 8
4. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE
ANNUAL REPORT 11
5. LEGISLATIVE AND OTHER MANDATES 12
6. ORGANISATIONAL STRUCTURE 13
PART B: PERFORMANCE INFORMATION 151. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES 16
2. SITUATIONAL ANALYSIS 16
2.1. Service delivery environment 16
2.2. Organisational environment 16
2.3. Key policy developments and legislative changes 17
2.4. Strategic Outcome Orientated Goals 17
3. PERFORMANCE INFORMATION BY PROGRAMME/ACTIVITY/OBJECTIVE 18
4. REVENUE COLLECTION 37
5. DIVISIONAL REPORTS 49
PART C: GOVERNANCE 531. INTRODUCTION 54
2. PORTFOLIO COMMITTEES 54
3. EXECUTIVE AUTHORITY 54
4. THE ACCOUNTING AUTHORITY/BOARD 54
5. RISK MANAGEMENT 55
6. INTERNAL AUDIT AND AUDIT COMMITTEE 55
7. COMPLIANCE WITH LAWS AND REGULATIONS 56
8. FRAUD AND CORRUPTION 56
9. MINIMISING CONFLICT OF INTEREST 56
10. CODE OF CONDUCT 57
11. BOARD SECRETARY 57
12. SOCIAL RESPONSIBILITY 57
13. AUDIT AND RISK COMMITTEE REPORT 58
PART D: HUMAN RESOURCE MANAGEMENT REPORT 591. INTRODUCTION 60
2. HUMAN RESOURCE OVERSIGHT STATISTICS 60
PART E: FINANCIAL INFORMATION 651. REPORT OF THE AUDITOR-GENERAL TO THE PARLIAMENT ON THE
CONSTRUCTION EDUCATION AND TRAINING AUTHORITY 66
2. ANNUAL FINANCIAL STATEMENTS 69
TA
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Submission of Annual Report to the Executive Authority
In accordance with the Public Finance Management Act
No.1 of 1999, as amended, it is with great pleasure that
we present to you the Annual Report of the Construction
Education and Training Authority (CETA).
This report covers the period from 01 April 2018 to 31 March
2019 and provides an overview of the operations, financial
performance and developments across all performance
targets as encapsulated in the Annual Performance Plan.
The CETA Accounting Authority, management and staff
would like to express their heartfelt appreciation for the
visionary and thought leadership of both the Minister
and Deputy Minister of Higher Education, Science and
Technology. We look forward to another dynamic financial
year with challenging targets to enhance the skills
development and training of the sector we prudently serve.
Mr Raymond CeleCETA Accounting Authority (AA) Chairperson
Date: 31 July 2019
The Honourable. Dr Blade NzimandeMinister of Higher Education, Science and Technology
The Honourable. Buti Manamela, MPDeputy Minister of Higher Education, Science and Technology
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
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GENERAL INFORMATION
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
AA Accounting Authority
AFS Annual Financial Statements
APP Annual Performance Plan
APR Annual Performance Report
AQP Assessment Quality Partner
ATR Annual Training Report
CBE Core Business Executive
CBO Community-Based Organisation
CEO Chief Executive Officer
CESA Consulting Engineers South Africa
CETA Construction Education and Training Authority
CFO Chief Financial Officer
CIDB Construction Industry Development Board
CPD Corporation for Public Deposits
CPUT Cape Peninsula University of Technology
CUT Central University of Technology
DEAFSA Deaf Federation of South Africa
DG Discretionary Grant
DHET Department of Higher Education and Training
DHS Department of Human Settlements
DoL Department of Labour
DPSA Disabled People South Africa
DQP Development Quality Partner
ETQA Education and Training Quality Assurance
FETC Further Education and Training Certificate
FITA Flooring Industry Training Association
GCIS Government Communication Information and System
HET Higher Education and Training
ICB Institute of Certified Bookkeepers
ICT Information Communication Technology
JPMT Joint Project Management Team
KPI Key Performance Indicator
KZN KwaZulu-Natal
LGSETA Local Government Sector Education and Training Authority
LMIP Labour Market Intelligence Programme
LPQD Learning Pathways and Quality Development
MBSA Master Builders South Africa
MG Mandatory Grant
MIS Management Information System
MoU Memorandum of Understanding
MPLS Multi-Protocol Label Switching
MQA Mining Qualifications Authority
MTEF Medium Term Expenditure Framework
MTSF Medium Term Strategic Framework
AB
BR
EV
IAT
ION
S A
ND
AC
RO
NY
MS
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
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NAMB National Artisan Moderating Body
NARYSEC National Rural Youth Service Corps
NC National Certificate
NCV National Certificate Vocational
NGO Non-Governmental Organisation
NPO Non-Profit Organisation
NHBRC National Homebuilders Registration Council
NLRD National Learners’ Records Database
NMMU Nelson Mandela Metropolitan University
NQF National Qualifications Framework
NSDS National Skills Development Strategy
NSFAS National Student Financial Aid Scheme
NVC New Venture Creation
OFO Organising Framework for Occupations
PABX Private Automated Branch Exchange
PFMA Public Finance Management Act
PIVOTAL Professional Vocational Technical and Academic Learning
PSET Post-School Education and Training
QAP Quality Assurance Partner
QCTO Quality Council for Trades and Occupations
QMR Quarterly Monitoring Report
RPL Recognition of Prior Learning
SAFCEC South African Federation of Civil Engineering Contractors
SANMVA South African National Military Veterans’ Association
SANRAL South African National Roads Agency SOC Limited
SAQA South African Qualifications Authority
SARS South African Revenue Services
SAWIC South African Women in Construction
SDA Skills Development Act
SDF Skills Development Facilitator
SDLA Skills Development Levies Act
SETA Sector Education and Training Authority
SLA Service Level Agreement
SMME Small, Medium and Micro-sized Enterprise
SSP Sector Skills Plan
SP Strategic Plan
TETA Transport Education and Training Authority
TVET Technical and Vocational Education and Training
UKZN University of KwaZulu-Natal
UNIVEN University of Venda
UoT University of Technology
WITS The University of the Witwatersrand
WSP Workplace Skills Plan
WSS Workplace Skills Survey
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Introduction Another year has concluded and the CETA has made valiant
strides in ensuring delivery of skills within the construction
sector.
This annual report outlines the sound financial status of the
organisation and performance against set objectives. A new
Accounting Authority was introduced to carry on the baton of
providing strategic direction and ensuring sound corporate
governance on the operations of the organisation.
Based on the extended National Skills Development Strategy
(NSDS) III, including its own Sector Skills Plan (SSP),
Strategic Plan (SP) and Annual Performance Plan (APP) the
CETA is, mainly responsible for the following:
• Review, development and registration of qualifications
• Accreditation of providers and the registration of practitioners
Performance of the sector Although the construction sector remains a key player in
the domestic economy, it has of late experienced a sharp
decline in contribution to the overall Gross Domestic Product
(GDP).
The construction industry has been the sector most affected
by the deterioration in the performance of the economy in
recent years and the industry’s Gross Value Added (GVA) fell
by 0,6% in 2017 and 1,2% in 2018. There has been less of an
impact on employment in the industry however the growth in
the numbers employed has stagnated since 2015.
The future performance of the construction sector is
dependent on the level of overall performance in the
economy.
2. FOREWORD BY THE CHAIRPERSON
Mr Raymond CeleCETA Accounting Authority Chairperson
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
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The effect of the economical challenges faced by the sector is
one that will impact on the CETA’s revenue in the future. Total
revenue for the CETA was slightly higher than the estimated
income (Budget). Actual expenditure for discretionary grants
was above the budgeted expenditure.
Strategic Relationships and Flagship ProjectsIn relation to the CETA’s objective to strengthen and expand
strategic partnerships, which maximise sustainability and
impact of skills development interventions, the below new
strategic relationships were realised to address the CETA’s
flagship projects:
• International Placement Programme - The CETA
signed an agreement with The Chinese Culture and
International Education Exchange Centre (CCIEEC)
for 300 learners to be enrolled and placed into TVET
Colleges/Universities in and around China as interns.
• Artisan Development - The CETA has positioned itself as
an artisanal organisation. In so doing, it has emphasised
key strategic partnerships with industry experts in an
effort to provide a high quality artisanal programme.
• Partnerships with the German Institute,
Kreishandwerkerschaft Steinfurt – Warendorf (KH). The
aim of this partnership is to promote a dual system of
education within the CETA funded learning centres.
• CETA five year SMME Strategy - Through the CETA
SMME Summit, held in March 2019, the CETA facilitated
discussions with various stakeholders in the sector,
under a number of small business related topics. The
high unemployment rate places serious pressure on the
South African government not only due to the consequent
socio-economic issues related to joblessness in a
country, but also on its ability to create jobs and absorb
people into the workforce. As part of implementing the
strategy, the CETA is implementing a drive to deliberate
partnerships with public and private entities to increase
revenue
The Accounting AuthorityThe Accounting Authority of the CETA is constituted in line
with the prescripts of its Constitution.
The following are its Committees:
• Executive Committee
• Audit and Risk Committee
• Finance Committee
• Core Business Committee
• Governance and Strategy Committee
• Remuneration Committee
All the Committees of the Accounting Authority met as per the
requirements of the Constitution and successfully delivered
on their respective mandates.
The year aheadThe CETA appreciates the forthcoming challenge of the
introduction of the National Skills Development Plan 2030
and will ensure early groundwork is carried out in terms of
strategic planning. The core focus for the year ahead will be
largely on outputs and the quality thereof. More emphasis
shall be placed on ensuring increased capacity and that
support is provided to all stakeholders.
Acknowledgements The Acconting Authority has remained a firm pillar and
ensured that there is delivery in line with the mandate of the
CETA. All the members have ensured their commitment in
providing oversight to facilitate skills development to all in
construction. The Management and staff of the CETA have
proven themselves as selfless ambassadors within their
respective roles to safeguard the futures of prospective
leaders in construction.
ConclusionWith the advent of the now gazetted SETA Skills Development
Landscape, it is evident that the focus is on outcomes and
outputs. The CETA seeks to redefine its intent to ensure
alignment to the goals and strategy as mandated by the
Department of Higher Education Science and Technology
under the stewardship of the Honourable Minister, Dr Blade
Nzimande. The CETA shall in all its concerted efforts, remain
a learner-centred organisation.
Mr. Raymond CeleCETA Accounting Authority (AA) Chairperson
Date: 31 July 2019
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
It is our pleasure to present the Annual Report of the
Construction Education and Training Authority (CETA) for
the 2018/19 financial year. The CETA has strived to ensure
that it remains a learner centred organisation, committed
to ensuring delivery of outcomes based learning to
disadvantaged learners from all disciplines in construction.
The CETA continued on the same trajectory as per the
previous three financial years wherein a clean audit
outcome was maintained through constant efforts to ensure
delivery of the CETA’s mandate. The audit report of the
CETA demonstrates the level of internal controls that are
in place to ensure adequate and effective reporting of
achievements. This exemplifies the focused approach
towards strengthening internal processes over the last few
years in achieving a clean administration.
In line with the Strategic Plan and Annual Performance Plan
as approved by the Accounting Authority, the organisation
strives to build on the previous lessons learnt and the
implementation of continuous improvement mechanisms.
This in turn has created an enabling environment for the staff
and Management to execute their duties and address the
needs of the sector.
The aim has been to provide diverse opportunities for all
those seeking post-school education and training that
combines new and progressive ways to prepare learners
for the workplace, including formal employment and self-
employment.
The CETA positioned itself as an artisanal CETA in order to
progress the standards of artisan training in the country.
This has paved a way for an exciting review of the status quo
and allowing for benchmarking activities with international
standards and this for a sector that is facing challenging
economic constraints within the public and private sectors.
The level of ongoing support from global and local partners
aimed at implementing this critical programme has been
outstanding.
3. CHIEF EXECUTIVE OFFICER’S OVERVIEW
Mr Robert SemenyaActing Chief Executive Officer
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
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General financial review of the public entity In the financial year 2018/2019, CETA received R648 million
in skills development levies compared to R596 million in the
previous period. We successfully disbursed R89 million in
mandatory grants compared to R85 million in 2017/18, while
R695 million was ploughed into discretionary grant projects,
compared to R344 million in the previous period.
It should be noted that all budgeted funds for 2017/18 were
allocated. This also saw an increase in disbursement of
project expenditure due to increased efforts in the processing
of invoices during the financial year.
The audited financial statements reflect R11.67 million in
irregular expenditure due to unauthorised adjustment to
employment costs. This is currently a legal matter between
the CETA and its employees. The CETA board resolution
indicated action to be taken in a form of consequence
management and to recover the irregular expenditure.
In spite of these developments and disruptions affecting
staff during the year, our audit report remains clean with non-
material findings raised by the Auditor General. An Audit
Action Plan is in place to address the Auditor-General’s
concerns and non-compliance gaps and control deficiencies
that have emerged as a major risk to the organisation. The
CFO will monitor its implementation constantly.
Future Outlook The outlook of the SETA landscape is optimistic as we start
closing down the curtain on the NSDS III era with a new
vision in sight, that of the National Skills Development Plan
(NSDP) 2030.
The CETA is setting itself up to accommodate the vision by
safeguarding its strategy through its flagship projects of:
• Thapelo Madibeng Bursary Scheme - The CETA made
the decision to honour the memory of the former Core
Business Executive, Mr Thapelo Madibeng, who made a
significant contribution to skills development at the CETA
and other institutions. The strategic goal of the bursary
programme is to have an increased pool of skilled
and competent graduates entering the construction
sector. The programme targets 2000 learners who are
interested in pursuing their studies in the construction
sector.
• International Placement Programme - In order to
address issues of transformation in the sector the CETA
has embarked on various work placement programmes.
These types of programmes address work placement
difficulties for graduates and the limited practical
workplace experience.
• Recognition of Prior Learning - The RPL programme
identifies principles and processes through which prior
learning, whether formal, non-formal or informal, is
measured and mediated for recognition and certified
against the requirements for credit in the formal
education and training system.
• CETA Academy - In partnership with WITS Enterprise the
CETA aims to provide SETA customised skills through
the establishment of a CETA Academy. The Academy
will enable SETAs to implement skills development as
there are currently no SETA specific courses.
• Establishment and Construction of Skills Development
Centres - The Skills Development Centres aim to provide
access to occupational programmes and education
to underserved communities in rural areas through
excellent educational facilities.
• Artisanal Program - The training of artisans continues
to be a national priority. The CETA has positioned itself
as an artisanal SETA. The sector is largely informal and
often these informal skills are not recognised. The CETA
is aiming to address this by ensuring that relevant skills
are identified, and candidates enter the formal system to
acquire formal qualifications.
Partnerships remain at the heart of the CETA. The focus will
be on greater cooperation between education and training
institutions and the workplace; expanded access, improved
quality and increased diversity of provision.
Economic Viability The construction sector is an important contributor to the
South African economy. The construction industry has been
the sector most affected by the downturn in capital spending
in the economy. The future performance of the construction
sector is dependent on the level of overall domestic
economic performance.
We anticipate the recovery will be slow but will accelerate
owing to rising consumer and business confidence based on
structural reforms in the economy, increased policy certainty
and higher public infrastructure spending. The result will
be a significant increase in the demand for labour services
in the industry. We anticipate the demand for elementary
occupation workers in small and medium sized companies
will be more resilient, given the assumption of some growth
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
in total output in the industry over the next few years.
The CETA aims to sustainably strengthen the vocational
training supply and the employability of artisans in order
to improve the labour-market oriented vocational training
system, and ultimately improve the employability and
provide opportunities of self-employment. The development
of the sector will also largely reply on the CETA bridging the
skills gap and providing workplace placement opportunities
for students through strategic partnerships with employers.
Acknowledgements and Appreciation In the past year, we have encouraged our stakeholders to
support and participate in skills development initiatives by
the CETA and appreciation goes to our active employers,
professional bodies, training providers and beneficiaries
of CETA programmes for continuing to work with us and
inspiring us to deliver on our mandate.
We acknowledge the support received from the Accounting
Authority of the CETA who have exercised high level of good
governance amid a challenging period in the organisation.
These are independent individuals who were appointed
as of 01 April 2018, exert themselves in discharging their
oversight duties as a collective.
In the year under review we mourned the passing of Mr
Thapelo Madibeng and Ms Esther Mpolaise, the Core
Business Executive and Manager: Data Management
respectively. They were highly dedicated and committed
stalwarts who exerted themselves to ensuring the delivery
of skills within the construction sector and the impact of their
presence shall be felt for years to come.
The Management and staff of the CETA who are the foot
soldiers who carry this ship through the waves have
continuously demonstrated their commitment to ensuring the
mandate of the CETA is achieved. These individuals have
consistently sacrificed their time and skills during difficult
times towards a common goal.
Together as a unit, the CETA can achieve more.
Mr Robert SemenyaCETA Acting Chief Executive Officer
Date: 31 July 2019
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
11
4. Statement of responsibility and confirmation of accuracy for the annual report
To the best of our knowledge and belief, we confirm the following:
All information and amounts disclosed in the Annual Report is consistent with the Annual Financial Statements audited by
the Auditor-General;
The Annual Report is complete, accurate and is free from any omissions.
The Annual Report has been prepared in accordance with the guidelines as issued by the National Treasury;
The Annual Financial Statements (Part E) have been prepared in accordance with the South African Statements of Generally
Recognised Accounting Practices (GRAP) including any interpretations, guidelines and directives issued by the Accounting
Standards Board;
The Accounting Authority has an oversight role in the preparation of the Annual Financial Statements by the Chief Financial
Officer and her team and is assisted by both the Finance and Audit Committees who review these financial statements prior
to submission to the Accounting Authority, the National Treasury and the Department of Higher Education, Science and
Technology.
The Accounting Authority has an oversight role in the establishment and implementation of a system of internal control that
has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the
human resources information and the Annual Financial Statements. The Acting Chief Executive Officer and the management
team, the internal auditors and the Audit Committee assist the Accounting Authority in accomplishing this task; and the
Auditor-General has been engaged to express an independent opinion on the Annual Financial Statements.
In our opinion, the Annual Report fairly reflects the operations, the performance information, the human resources information
and the financial affairs of the CETA for the financial year ended 31 March 2019.
Yours faithfully,
Mr. Robert Semenya Mr. Raymond CeleActing Chief Executive Officer Chairperson of the Accounting Authority
Date: 31 July 2019 Date: 31 July 2019
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
5. LEGISLATIVE AND OTHER MANDATES
5.1 Legislative MandateThe Construction Education and Training Authority (CETA) is
established in terms of the Skills Development Act. No.97 of
1998 as amended and listed in terms of the Public Finance
Management Act No, 1 of 1999 as amended as a Schedule
3A public entity.
The following are the legislative policies and other frameworks
that govern the work of the CETA:
5.1.1. The Constitution of the Republic of South Africa
Act No. 108 of 1996 - it addresses the political
transformation agenda of South Africa.
5.1.2. The Skills Development Act No. 97 of 1998 - provides
a framework to develop and improve the skills of
South African workforce.
5.1.3. The Skills Development Levies Act No.9 of 1999 -
makes provision for the funding of skills development
interventions.
5.1.4. The Income Tax Act No 58 of 1962 – Learnerships
Allowance (Revised)
5.1.5. The Public Finance Management Act No.1 of 1999,
as amended by Act 29 of 1999) - regulates financial
management in government and public entities to
ensure transparency, effective and efficient use of
revenue, expenditure, liabilities and assets.
5.1.6. The Employment Equity Act No. 55 of 1998 aims
to facilitate workplace transformation through the
elimination of unfair discrimination and implementation
of affirmative action and measures to enable equitable
representation of employees from different race and
gender groups in the workplace.
5.1.7. The National Qualifications Framework, Act No. 67 of
2008.
5.1.8. White Paper on Post School Education and Training
(PSET).
5.1.9. Human Resources Development Strategy for South
Africa (HRDSSA).
5.1.10. National Skills Development Strategy (NSDS) III
5.1.11. National Infrastructure, Act No. 23 of 2014
5.1.12. The New Growth Path and the National Skills Accord
5.1.13. National Development Plan: Vision for 2030 (NDP)
5.1.14. Medium Term Strategic Framework (MTSF)
5.1.15. Strategic Integrated Projects (SIPs)
5.1.16. Special Economic Zones (SEZ)
5.1.17. National Industrial Policy Framework (NIPF) and
Industrial Policy Action Plan (IPAP) 2014/15 -
2018/19 - 2020/21
5.1.18 The SETA Grants Regulations, regarding monies
received by SETA’s and releted matters.
5.1.19. Broad Based Black Economic Empowerment, Act
No. 53 of 2003.
5.1.20. The Preferential Procurement Policy Framework, Act
No. 5 of 2000.
5.1.21. Construction Regulations, 2014
5.1.22. Construction Charter
5.2 National Skills Development Strategy (NSDS III) National Skills Development Strategy III aims to:
5.2.1 Improve the skills development system so that it
is more responsive to the labour market needs
and social equity requirements;
5.2.2 Integrate workplace training and theoretical
learning;
5.2.3 Improve the skills level of graduates of secondary
and tertiary education;
5.2.4 Address skills shortages in the artisan, technical
and professional fields;
5.2.5 Reduce the over-emphasis on NQF level 1-3
learnerships;
5.2.6 Equip those in the workforce with sufficient
technological skills;
5.2.7 Improve co-operation between the universities,
Further Education and Training colleges and Sector
Education and Training Authorities.;
5.2.8 Support economic growth and development
through viable skills development;
5.2.9 Develop sufficient skills for rural development;
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
13
5.3 National Skills AccordThe National Skills Accord was signed in July, 2011 by the Government and social partners to:
5.3.1 Expand the level of training, using existing facilities more fully;
5.3.2 Make internship and placement opportunities available within workplaces;
5.3.3 Set guidelines of ratios of trainees and artisans across the technical vocations, in order to improve the level of
training;
5.3.4 Improve the funding for training and use the funds available for training as incentives for companies to train;
5.3.5 Set annual targets for training in state-owned enterprises;
5.3.6 Improve SETA governance, financial management as well as stakeholder involvement;
5.3.7 Align training to the New Growth Path and improve the Sector Skills Plans;
5.3.8 Improve the role and performance of TVET Colleges;
6. ORGANISATIONAL STRUCTURE
EXECUTIVE AUTHORITY
ACCOUNTING AUTHORITY
CHIEFEXECUTIVE
OFFICER
MANAGERIN THE OFFICE OF THE CEO
MANAGERPROVINCIALOPERATIONS
BOARDSECRETARIAT
EXECUTIVEASSISTANT
TO CEO
COREBUSINESS
EXECUTIVE
CHIEFFINANCIALOFFICER
PROJECTSEXECUTIVE
SENIORMANAGER
LEGAL SERVICES
CORPORATESERVICESDIVISION
CORE BUSINESS DIVISION
FINANCE DIVISION
PROJECTS DIVISION
LEGAL DEPARTMENT
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
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PERFORMANCE INFORMATION
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
1. AUDITOR’S REPORT: PREDETERMINED OBJECTIVESRefer to page 66 - 68 of the Report for the Auditor’s Report, published as Part E: Financial Information.
2. SITUATIONAL ANALYSIS
2.1 Service delivery environmentThe development of the CETA Annual Report is informed by
the NSDS III goals, objectives and programmes. In terms
of its strategy and the APP, the CETA identified five primary
strategic objectives:
The Strategic objectives are as follows:
• Support skills development of new entrants and the
unemployed into the Construction Sector;
• Enhance the skills of the existing workforce of the
Construction Sector;
• Respond to changing sectoral needs and priorities
including contributing to transformation through skills
development in the construction sector;
• Strengthen and expand strategic partnerships to
maximise sustainability and impact of skills development
interventions;
• Support national imperatives in relation to skills
development within the Construction Sector.
The CETA’s strategic plan is aligned to the following eight
goals 4.1 - 4.8 of the NSDS III:
Goal 4.1: Establishing a credible institutional mechanism
for skills planning;
Goal 4.2: Increasing access to occupationally-directed
programmes;
Goal 4.3: Promoting the growth of Public TVET College
system that is responsive to sector, local,
regional and national skills needs and priorities
Partnerships;
Goal 4.4: Addressing the low level of youth and adult
language and numeracy skills to enable
additional training. The CETA does not
implement ABET programmes. However,
in line with this goal, it has registered the
GETC in Construction Processes as well as
occupational short skills programmes at NQF
Level 1 and reported as part of goal 4.2.
Goal 4.5: Encouraging better use of workplace-based
skills development;
Goal 4.6: Encouraging and supporting cooperatives,
small enterprises, worker initiated, NGO and
community training initiatives;
Goal 4.7: Increasing public sector capacity for improved
service delivery and supporting the building of
a developmental state.
Goal 4.8: Building career and vocational guidance
The CETA also addresses transformational imperatives
aligned to the NSDS III objectives.
2.2 Organisational environmentIn the 2015/16 financial year, the CETA for the first time
since its establishment received a clean audit opinion from
the Auditor General and this was maintained between the
2016/17 and 2017/18 financial years. This clean audit is an
attestation of the clean administration that the organisation
ran in the past financial years, as well as a testimony of the
commitment and dedication of the Accounting Authority,
management and staff of the organisation to its mandate.
It is a benchmark that the organisation has set itself for the
remainder of its existence.
The CETA also obtained a clean audit from the Auditor
General for the years 2015/16, 2016/17 and 2017/18 due to
among others - appropriate accounting policies, supported
by reasonable and prudent judgements and estimates, have
been applied on a consistent basis. The achievement of the
clean audits by the CETA is by no means a small feat, given
the history of the organisation. This is the final culmination of
the rigorous process of a clean administration which has its
origins during the Administrative period.
Further to the above-mentioned clean audit achievement of
the CETA, the organisation had a 100% decrease in irregular
expenditure from the year 2014/15, when it reported irregular
expenditure of R637 000 – which in the main – was a legacy
of issues prior to Administration to R0 in 2015/16 and
2016/17. The CETA also maintained its R0 in fruitless and
wasteful expenditure which it had for the past financial year.
The overall audit report of the CETA clearly demonstrates
that internal controls are in place, adequate and effective.
This the culmination of the aggressive processes that the
CETA put in place over the last few years in achieving a
clean administration.
Not only did the CETA achieve this clean audit, but also
delivered very strongly on its mandate in 2017/18 which is
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
17
evidenced by its achievements in the number of learners
reported.
The Accounting Authority and its management remains
committed to ensure that the CETA continues to deliver on
its mandate whilst it continuously improves its risk mitigation
strategies and implementation in its efforts to maintain
a clean audit. The above will mean that the CETA pays
careful attention to the areas of continuous improvement – as
identified by the last management report of the AG.
2.3 Key policy developments and legislative changesDuring the period under review, there were no major
changes to relevant policies and legislation that affected
CETA operations.
2.4 Strategic Outcome Orientated Goals
The Programme Structure: The CETA’s Strategic Plan and Annual Performance Plan have
four broad programmes. These programmes are mapped in
line with the Department of Higher Education, Science and
Technology and Treasury Guideline Strategic Framework.
The Four broad Programmes of the 2018/19 CETA Strategic
Plan/Annual Performance Plan are listed below:
Programme 1: Administration
Programme 2: Skills Planning and Reporting
Programme 3: Learning Programmes and Projects
Programme 4: Quality Assurance
Programme 1: Administration• Corporate Services
• Finance
• Governance
• Information, Communications and Technology
Programme 2: Skills Planning, Research and Reporting • Skills Planning
• Reporting
Programme 3: Learning Programmes and Projects• Implementation of learning programmes e.g:
» Short Skills Programmes
» Learnerships
» Apprenticeships
» Recognition of Prior Learning
• Graduate Placements
• Development of Skills Centres
• Development and Support of SMME’s, Co-operatives,
NGOs, CBOs
• Bursaries
• Partnerships
• Career and vocational guidance
• Certification (excluding trades)
Programme 4: Quality Assurance • NQF Provider Accreditations
• Qualifications Development
• Monitoring and Evaluation
Goal 1 To provide ethical and strategic leadership and management.
Goal 2 To ensure a credible mechanism for skills
planning and reporting in the construction
sector.
Goal 3To address skills priorities
within the construction sector.
Goal 4Implementation of
quality assurance that will enhance and ensure
quality provision of training.
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3. PERFORMANCE INFORMATION BY PROGRAMME
PART B : Programme and Sub-Programme PlansPROGRAMME 1: ADMINISTRATION
This programme consists of the following sub-programmes:
1.1 Corporate Services
1.2 Finance
1.3 Governance
Information, Communications and TechnologyGoal: To provide ethical and strategic leadership and management.
1.1 Sub-Programme CORPORATE SERVICES
Strategic Objective Provide Effective Human Capital Management
Objective statement To provide effective human resource management within the CETA for the delivery of its mandate.
Baseline Approved organogram; Staff capacity; performance management system.
Justification To build required capacity in order to deliver on the mandate of the CETA.
Links Key acts include the Occupational Health and Safety Act (OHS); Labour Relations Act (LRA); Basic Conditions of Employment Act (BCEA) and Employment Equity Act (EEA); Compensation for Injuries and Disease Act.
1.2 Sub-Programme FINANCE
Strategic Objective Sound Financial Management and Accurate Reporting
Objective statement To provide effective financial management in line with the requirements of the PFMA.
Baseline Unqualified Audit Outcome.
Justification To ensure efficient and effective systems of financial management, internal controls, risk management and compliance.
Links Public Finance Management Act (PFMA), Treasury Regulations, and CETA Policies and Procedures.
1.3 Sub-Programme GOVERNANCE
Strategic Objective Exemplary Corporate Governance and Management
Objective statement Provide effective corporate governance and management of the CETA in line with the Constitution and Strategic Plan.
Baseline CETA Constitution; Strategic Plan; PFMA.
Justification Good Corporate governance to be able to deliver on the mandate of the CETA.
Links NSDS; CETA Constitution; PFMA; King IV; CETA Policies.
1.4 Sub-Programme INFORMATION, COMMUNICATIONS AND TECHNOLOGY
Strategic objective Effective Governance of ICT
Objective statement To provide an effective ICT environment based on the Department of Public Service and Administration (DPSA) ICT corporate governance framework in line with applicable corporate governance frameworks.
Baseline CETA ICT Governance Framework.
Justification To ensure a reliable, effective and efficient IT infrastructure environment at the CETA.
Links DPSA Corporate Governance Framework (ICT).
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1.1 Strategic Objective Annual Targets
Purpose – to provide strategic leadership, management and support services to the CETA.
Strategic Objective5 Year Strategic
Plan Target
Baseline (Audited / Actual Performance)
2017/2018
Planned Target2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement For 2018/2019
1.1 Provide Effective Human Capital Management
95% of the vacant positions, are filled as per the organogram (define “vacant” in TID).
27% 5% 47% Target Not AchievedDuring the Financial year under review, recruitment priorities were identified within the organisation by the management team.
18 new vacancies were filled. The issue of office space and budget constraint contributed in not achieving the target.
1.1 Provide Effective Human Capital Management
Resource capacitation and human capital training and development of CETA Staff as per the organisational skills matrix (define “skills matrix – number of staff and programmes listed” in TID).
90% 100% 100% Target AchievedBursaries - 18 staff members have enrolled for a PIVOTAL qualification through the Central University of Technology.
Bursaries – 14 management staff members enrolled for a PIVOTAL qualification through Wits University.A further four of the staff members are being funded by the CETA on a bursary programme with UNISA, MANCOSA and Wits.
Capacity Building workshops; Inductions and Policy Workshops were conducted.
1.2 Development and establishment of a SETA academy
Establishment of partnerships with public institutions for effective human capital development.
- Partnerships with public institutions for the delivery of SETA programmes.
Partnerships with public institutions for the delivery of SETA programmes.
Target Achieved
1.3 Sound Financial Management and Accurate Reporting
Statutory compliance requirements are adhered to maintain an unqualified audit opinion.
Unqualified Audit Opinion – Clean Audit
Unqualified Audit Opinion
Unqualified Audit Opinion – Clean Audit
Target Achieved
1.4 Exemplary Corporate Governance and Management
Number of functional governance structures in operation to monitor the efficiency and functionality of the organisation in line with statutory requirements.
7 7 7 Target Achieved
1.4 Exemplary Corporate Governance and Management
Number of Governance Charter reports submitted.
4 4 4 Target Achieved
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Strategic Objective5 Year Strategic
Plan Target
Baseline (Audited / Actual Performance)
2017/2018
Planned Target2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement For 2018/2019
1.5 Effective Governance of ICT
Quarterly ICT Progress Reports are submitted to the Audit Committee and Accounting Authority.
4 4 4 Target Achieved
Availability of ICT systems in the organisation as per the ICT plan.
95% 90% 95% Target ExceededSystems were stable and the committed SLAs were exceeded in relation to projected percentages.
1.6 Enhancement of public relations and marketing activities
Marketing through existing projects and implementation of other cost effective branding initiatives.
- - 1 Target Achieved
Programme Performance Indicators and Annual Targets for MTEF 2018/19Goal: To provide ethical and strategic leadership and management.
Links To Strategic Objectives
Performance Indicators
Baseline (Audited / Actual Performance)
2017/2018Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
1.1 Provide Effective Human Capital Management
Reduce Vacancy rate to 5%
27% 5% 47% Target Not AchievedDuring the Financial year under review, recruitment priorities were identified within the organisation by the management team.
18 new vacancies were filled. The issue of office space and budget constraint contributed in not achieving the target.
1.1 Provide Effective Human Capital Management
% of staff trained or enrolled in further studies/received continuous development as per the skills matrix (informed by the signed PDP and statutory requirements).
90% 100% 100% Target AchievedBursaries - 18 staff members have enrolled for a PIVOTAL qualification through the Central University of Technology.
Bursaries – 14 management staff members enrolled for a PIVOTAL qualification through Wits University.A further four of the staff members are being funded by the CETA on a bursary programme with UNISA, MANCOSA and Wits.
Capacity Building workshops; Inductions and Policy Workshops were conducted.
% of employees with approved performance plans.
100% 100% 100% Target Achieved
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Links To Strategic Objectives
Performance Indicators
Baseline (Audited / Actual Performance)
2017/2018Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
1.1 Provide Effective Human Capital Management
Provide bursaries to CETA staff.
- 15 36 Target Exceeded
1.2 Development and establishment of a SETA academy
Conduct at least one staff development intervention per quarter in the following areas: - Writing skills·- Staff training on legislation, policies and procedures - CETA professional etiquetteInternational ComputerDriving License (ICDL)A SETA accredited short course in project management.
- 4 4 Target Achieved
Partner with a public institution of higher education to develop a programme at an NQF 9 level specifically for SETA Executives and Management.
- 1 1 Target Achieved
1.2 Development and establishment of a SETA academy
Fund the participation of SETA Executives and Management in the CETA developed NQF 9 programme.
- 14 14 Target Achieved
1.3 Sound Financial Management and Accurate Reporting
Quarterly financial reports are submitted to the DHET.
4 4 4 Target Achieved
Creditor payment age as per the Treasury Regulations.
30 days 30 days 30 days Target Achieved
1.4 Exemplary Corporate Governance and Management
Number of functional governance committee meetings on a quarterly basis to provide oversight on the delivery of the CETA’s mandate and provide guidance.
7 7 7 Target Achieved
Number of Governance Charter reports submitted.
4 4 4 Target Achieved
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Links To Strategic Objectives
Performance Indicators
Baseline (Audited / Actual Performance)
2017/2018Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
1.4 Exemplary Corporate Governance and Management
Reviewed and approved delegation of Authority Framework.
Approved Delegation of Authority
Approved Delegation of Authority
Approved Delegation of Authority
Target Achieved
All policies and procedures are approved annually.
Approved policies and procedures
Approved policies and procedures
Approved policies and procedures
Target Achieved
Train and/or update all active members of the Accounting Authority once per annum on corporate governance in the public sector.
- 1 1 Target Achieved
1.5 Effective Governance of ICT
ICT Charter and ICT Strategic and Implementation Plan are approved annually.
ICT Charter and ICT Strategic and Implementation Plan are approved annually.
ICT Charter and ICT Strategic and Implementation Plan are approved annually.
ICT Charter and ICT Strategic and Implementation Plan are approved annually.
Target Achieved
Quarterly ICT Progress Reports are submitted to the Audit Committee and Accounting Authority.
4 4 4 Target Achieved
Monitoring, analysis and responding to ICT systems performance.
- 4 4 Target Achieved
Acquire tablets for learners on CETA-funded projects.
- 1 0 Target Not AchievedThe CETA could not achieve this target due to the non-appointment of a suitable service provider.
Free Wi-Fi zones for all completed CETA skills development centres.
- 1 0 Target Not AchievedThe CETA could not achieve this target due to the non-appointment of a suitable service provider.
Acquire a biometric system for registration of learners on CETA-funded projects.
- 1 0 Target Not AchievedAlthough the procurement process was initiated, it could not be concluded timeously for the implementation of the system.
1.6 Enhancement of public relations and marketing activities
Provision of a minimum of two sets of CETA-branded PPE’s per annum to learners on CETA-funded projects.
- 1 1 Target AchievedThese target has been met through the DG funding allocated to approved companies where PPE is paid for per project.
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Links To Strategic Objectives
Performance Indicators
Baseline (Audited / Actual Performance)
2017/2018Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
1.6 Enhancement of public relations and marketing activities
Provision of a toolkit to learners on CETA-funded projects.
- 1 1 Target AchievedThese target has been met through the DG funding allocated to approved companies where the toolkit is paid for per project.
Regular feedback with media houses (broadcasting, print and radio) and use of new media to raise the profile of the CETA.
- 1 7 Target ExceededSeven radio interviews (with 7 stations) were completed which reached approximately 6 774 000.00 listeners in Eastern Cape, KwaZulu-Natal, Gauteng, Mpumalanga, Limpopo, Northern Cape, Western Cape and Free State.
Link to Budget2017/2018 2018/2019
Programme/activity/objective
Budget R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
Budget R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000Administration 87,170 74,236 12,934 89,386 81,837 7,549
PROGRAMME 2: SKILLS PLANNING AND REPORTING
This programme consists of the following sub-programmes:
2.1 Skills Planning2.2 ReportingGoal: To ensure a credible mechanism for skills planning and reporting in the construction sector.
2.1 Sub-Programme SKILLS PLANNINGStrategic Objective Sector Skills Needs Addressed
Objective statement To ensure effective planning to address the skills priorities in the sector.
Baseline Sector Skills Plans; Workplace Skills Plan; Annual Training Report.
Justification Suitably trained workforce in the construction sector.
Links Labour Market Intelligence Programme (LMIP); Employment Equity Reports (Labour); Stats SA (labour force survey).
NSDS III Link 4.1 Establishing a credible institutional mechanism for skills planning.4.2 Increasing access to occupationally-directed programmes.
2.2 Sub-Programme REPORTING
Strategic Objective Skills Performance Reporting
Objective statement To ensure accurate reporting of sector skills development initiatives.
Baseline Quarterly Performance Report; Annual Performance Report.
Justification All training interventions are accurately reported to ensure further skills planning.
Links Treasury Performance Information Guidelines; DHET Performance Information Guidelines.
NSDS III Link 4.2 Increasing access to occupationally-directed programmes.
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Strategic Objective Annual TargetsGoal: To ensure a credible mechanism for skills planning and reporting in the construction sector.
Strategic Objective
5 Year StrategicPlan Target
Baseline (Audited / Actual Performance)
2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement For 2018/2019
2.1 Sector Skills Needs Addressed
Number of levy paying members with submitted and approved WSPs and ATRs that contribute to the development of the SSP.
2 345 2 100 2 425
Target Exceeded
The CETA conducts stakeholder engagement sessions to support levy-paying entities in ensuring submission of their WSPs and ATRs. This achievement excludes nine non levy-paying entities that submitted WSPs.
2.2 Skills Performance Reporting
Ensuring accurate and compliant reporting on CETA Performance Information.
4 4 4 Target Achieved
Programme Performance Indicators and Annual Targets for MTEF 2018/19Goal: To ensure a credible mechanism for skills planning and reporting in the construction sector.
Links To Strategic
Objectives Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
2.1 Sector Skills Needs Addressed
Number of levy paying members with submitted and approved WSPs and ATRs that contribute to the development of the SSP. 2 345 2 100 2 425
Target Exceeded
The CETA conducts stakeholder engagement sessions to support levy-paying entities in ensuring submission of their WSPs and ATRs. This achievement excludes nine non levy-paying entities that submitted WSPs.
One SDF workshop per province per annum on WSP and ATR compilation and submission.
10 9 9 Target Achieved
Produce an updated and approved Sector Skills Plan aligned to the DHET SSP Framework.
1 1 1 Target Achieved
Perform at least one research activity to measure the delivery of skills in the sector.
- 1 1 Target Achieved
Quarterly Monitoring Reports (QMR) are submitted to DHET and validation reports are kept.
4 4 4 Target Achieved
Link to Budget2017/2018 2018/2019
Programme/activity/objectiveBudget
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
Budget R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000Skills & Reporting 144,120 85,150 58,970 151,976 89,323 62,654
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PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS
This programme consists of the following sub-programmes:
3.1 Implementation of learning programmes e.g.:• Short Skills Programmes
• Learnerships
• Apprenticeships
• Recognition of Prior Learning3.2 Graduate Placements3.3 Development of Skills Centres3.4 Development and Support of SMME’s, Co-ops, NGOs, CBOs & NPOs3.5 Partnerships3.6 Bursaries3.7 Career and vocational guidance3.8 Certification (excluding trades)
Goal: To address skills priorities within the construction sector.
3.1 Sub-Programme IMPLEMENTATION OF LEARNING PROGRAMMES Strategic Objective A skilled and capable workforce in the construction sector
Objective statement To ensure the skills needs in the sector are addressed with adequately skilled workforce.
Baseline Strategic Plan; Annual Performance Plan; Sector Skills Plan.
Justification A capacitated, empowered and appropriately skilled workforce in the construction sphere.
Links CETA Grants Policy; PIVOTAL List.
NSDS III Link 4.2 Increasing access to occupationally-directed programmes.
3.2 Sub-Programme GRADUATE PLACEMENTSStrategic Objective A Transformed Built Environment Profession
Objective statement To address transformation challenges within the built environment through increasing access to built environment professions for individuals from previously disadvantaged groups.
Baseline Employment Equity Report; Construction Industry Charter; Survey Reports; Sector Skills Plan.
Justification To address the current demographic imbalances and to achieve equity within the built environment professions.
Links BBBEE; Construction Industry Charter Codes.
NSDS III Link 4.2 Increasing access to occupationally-directed programmes.
3.3 Sub-Programme DEVELOPMENT OF SKILLS CENTRESStrategic Objective Greater Access By Marginalized Communities To Skills Development Through Infrastructural Support
Objective statement To ensure increased access to skills development programmes by marginalised communities through the construction of skills development centres.
Baseline CETA Situational Analysis Research Report (Skills Development Institutes); Sector Skills Plan.
Justification To address the lack of technical infrastructure capacity for skills training in marginalised communities.
Links Skills Development Act; CETA Grants Policy; Grant Regulations; National Development Plan.
3.4 Sub-Programme DEVELOPMENT AND SUPPORT OF SMME’s, CO-OPs, NGOs, CBOs & NPOsStrategic Objective A Vibrant Civil Society Engagement In Skills Development Within The Construction Sector
Objective statement To achieve sustainable development through increased participation of SMMEs, Co-ops, NGOs, CBOs, NPOs in skills development in the construction sector.
Baseline Sector Skills Plan; CETA SMME Programme.
Justification To address the imbalances within the construction sector.
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3.4 Sub-Programme DEVELOPMENT AND SUPPORT OF SMME’s, CO-OPs, NGOs, CBOs & NPOsStrategic Objective A Vibrant Civil Society Engagement In Skills Development Within The Construction Sector
Links National SMME Strategy; Comprehensive Rural Development Programme; Stats SA Survey of Employers and Self Employed.
NSDS III Link 4.6 Encouraging and supporting co-operatives, small enterprises, worker initiated, NGO and community training initiatives.
3.5 Sub-Programme PARTNERSHIPSStrategic Objective Strengthened Collaboration and Partnerships for skills development in the construction sector
Objective statement To ensure a wider impact, greater reach and a multi sectorial approach to skills development.
Baseline Signed Memorandum of Understanding (MOU); Sector Skills Plan.
Justification To give effect to the objective of the Constitution of inter-Governmental collaborations.
Links NSDS III; Sector Skills Plan.
NSDS III Link 4.3 Promoting the growth of a public TVET college system that is responsive to sector, local, regional and national skills needs and priorities.4.5 Encouraging better use of workplace-based skills development.4.7 Increasing public sector capacity for improved service delivery and supporting the building of a developmental state.Item 6. Building partnerships for a skills revolution.
3.6 Sub-Programme BURSARIESStrategic Objective An increased pool of skilled and competent graduates to enter the construction sector
Objective statement To provide financial support to deserving students from previously disadvantaged communities in the main to enrol for studies relevant to the construction sector.
Baseline CETA funded bursaries.
Justification To address socio economic challenges faced by-in the main-township and rural learners.
Links Rural Development Strategy of the Country; NSDS III; Sector Skills Plan; #FeesMustFall campaign.
NSDS III Link 4.2 Increasing access to occupationally-directed programmes.
3.7 Sub-Programme CAREER AND VOCATIONAL GUIDANCEStrategic Objective Increased knowledge and interest in the construction careers
Objective statement To attract new entrants into the construction sector occupations.
Baseline CETA Career Guide; CETA career exhibitions.
Justification Promote post school education and training opportunities within the construction sector.
Links NSDS III; Sector Skills Plan.
NSDS III Link 4.8 Building career and vocational guidance.
3.8 Sub-Programme CERTIFICATION (EXCLUDING TRADES)Strategic Objective Increased throughput of learners on accredited construction programmes through a strengthened certification
process
Objective statement To award successful learners with valid recognised certificates and Statement of Achievements.
Baseline NLRD Uploads, QMR Reporting of certified learners.
Justification To conduct external moderation of the assessments to ensure that the quality standard is maintained by accredited CETA training providers and to reward qualifying learners with recognized certificates.
Links NSDS III; Sector Skills Plan.
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3.1 Programme Performance Indicators and Annual Targets for MTEF 2018/19SUB-PROGRAMME: IMPLEMENTATION OF LEARNING PROGRAMMES
Purpose/Strategic Objective: A skilled and capable workforce in the construction sector.
NSDS III Link: Goal 4.2 - Increasing access to occupationally directed programmes in the Construction Sector.
Links To Strategic
Objectives
Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achieve-ment for 2018/2019
3.1.1 Learnerships EnteredUnemployed learners per year
3 420 (funded) 2 874 (funded)
6 463 Target ExceededThe CETA has ensured increased support to entities implementing CETA-funded learnership projects through capacity building workshops.
This resulted in more entities being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented.
1 178 (Unfunded) 366 (Unfunded)
725 Target ExceededThe CETA has increased support and resources to assist entities with the registration of learners for unfunded projects.
Employed learners per year
0 (funded) 0 (funded) 10 Not measured and therefore, there is no deviation against this target. This performance indicator is included as per DHET SLA Template.
64 (Unfunded) 55 (Unfunded)
130 Target ExceededThe CETA has increased support and resources to assist entities with registration of learners for unfunded projects.
Learnerships CompletedUnemployed learners per year
1 981 (funded) 1 437 (funded)
1 925 Target ExceededThe CETA has ensured increased support to entities implementing CETA-funded learnership projects through capacity building workshops.
The CETA has thus managed to exceed the target through ensuring learners entered in the previous financial years complete and exit programmes.
1 411 (Unfunded) 183 (Unfunded)
2 143 Target ExceededThis is due to the CETAs constant and active role in ensuring moderation and certification of learners that have completed training as well as compliance by industry and training providers.
b) Employed learners per year
0 (funded) 0 (funded) 0 Not measured and therefore, there is no deviation against this target. This performance indicator is included as per DHET SLA Template.
97 (Unfunded) 28 (Unfunded)
53 Target ExceededThis is due to the CETAs constant and active role in ensuring external moderation and certification of learners that have completed training.
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Links To Strategic
Objectives
Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
Skills Programmes Entered3.1.1 Unemployed
learners per year
2 605 (funded) 1 254 (funded)
4 880 Target ExceededThe CETA has ensured increased support to entities implementing CETA-funded skills programme projects through capacity building workshops. This resulted in more entities being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented.
736 (Unfunded) 261 (Unfunded)
362 Target ExceededThe CETA has increased support and resources to assist entities with registration of learners for unfunded projects.
b) Employed learners per year
129 (funded) 0 (funded) 16 Not Measured, although the CETA had no target for this indicator, the CETA achieved a total of 16 learners entered as a result of projects funded through discretionary grants.
344 (Unfunded) 131 (Unfunded)
143 Target ExceededThe CETA has increased support and resources to assist entities with registration of learners for unfunded projects.
Skills Programmes CompletedUnemployed learners per year
2 073 (funded) 627 (funded)
1 708 Target ExceededThe CETAs constant and active role in ensuring external moderation and certification of learners that have completed training.
The CETA has provided support to entities implementing projects under the qualifications of the CETA through the JPMTs.
639 (Unfunded) 131 (Unfunded)
4 126 Target ExceededThe CETAs constant and active role in ensuring moderation and certification of learners that have completed training as well as compliance by industry and training providers has assisted in exceeding target.
Employed learners per year
0 (funded) 0 (funded) 20 Not measured and therefore, there is no deviation against this target. This performance indicator is included as per DHET SLA Template.
668 (Unfunded) 66 (Unfunded)
429 Target ExceededThis is due to the CETAs constant and active role in ensuring external moderation and certification of learners that have completed training as well as compliance by industry and training providers.
Artisan EnteredUnemployed learners per year
5 801 (funded) 3 165 (funded)
8 421 Target ExceededIn support of the decade of the artisan, the CETA has also ensured increased support to entities implementing CETA-funded apprenticeship projects through capacity building workshops by the Executive for stakeholders as well as JPMTs. This has resulted in more entities being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented.
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Links To Strategic
Objectives
Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
3.1.1 1 626 (Unfunded) 528 (Unfunded)
1 376 Target Exceeded The CETA has ensured support and resources to assist entities with registration of learners for unfunded projects.
Employed learners per year
490 (funded) 0 (funded) 81 Not measured, although the CETA had no target, the CETA achieved 81 learners entered due to project allocations from previous years and those with learners undergoing trade testing.
413 (Unfunded) 0 (Unfunded)
462 Not measured, although the CETA had no target, the CETA achieved 150 learners entered due to submissions mostly for trade testing as received from industry.
Artisan CompletedUnemployed learners per year
1 511 (funded) 1 583 (funded) 1 029
Target Not AchievedThe CETA has achieved the overall target for Artisan Completed, however when broken down between funded and unfunded the target is not met.
265 (Unfunded) 264 (Unfunded)
82 Target Not AchievedThe CETA has achieved the overall target for Artisan Completed, however when broken down between funded and unfunded the target is not met.
Employed learners per year
124 (funded) 0 (funded)584
Not measured, although the CETA had no target, the CETA has achieved 57 learners completed due to project allocations from previous years and learners reported as completed in the financial year under review.
60 (Unfunded) 0 (Unfunded) 182
Not measured, although the CETA had no target, the CETA has achieved 141 learners completed due to competent learners trained by industry and requests for certification submitted for learners through the CETA.
BursariesNumber of bursaries entered: Unemployed learners per year
759 627 (funded)
2 317 Target ExceededOver and above the bursary support to public Universities and entities in the construction sector, the CETA has extended the bursary support to public learners through the Thapelo Madibeng Bursary Scheme Launched in February, 2019.
Number of bursaries completed:Unemployed learners per year
94 100 (funded)
100Target Achieved
Number of internships entered:Unemployed learners per year
537 523 (funded)
743 Target ExceededIn the 2018/19 financial year, the CETA has advertised for discretionary grants for internships for implementation, which contributed to the achievement. This also includes projects with old allocations that were revived through motivated support by the CETA. The CETA has also ensured increased support to entities implementing CETA-funded bursary projects through capacity building workshops by the Executive for stakeholders.
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Links To Strategic
Objectives
Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
3.1.1 Graduate Development ProgrammesNumber of internships completed:Unemployed learners per year
82 262 (funded)
124 Target Not AchievedThis is due to the low number of interns completed in line with those that entered in the previous year/s.
In addition the lack of workplace availability has impacted on achieving the target.
Number of TVET Student/Graduate Placements entered per year
227 109 (funded)
373 Target ExceededThe CETA has provided increased support to public TVET Colleges implementing CETA-funded construction projects through capacity building workshops by the Executive for stakeholders as well as JPMTs. This has resulted in more TVET Colleges being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented.
Number of TVET Student/Graduate Placements completed per year
57 53 (funded) 68 Target ExceededThe CETA has provided increased support to public TVET Colleges implementing CETA-funded construction projects. This has resulted in more TVET Colleges being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented and completed.
Number of HET Students entered per year (P1, P2 / Learner placement in workplaces)
188 109 (funded)
437 Target ExceededThe CETA has provided increased support to Universities of Technology (UoT) implementing CETA-funded construction projects through capacity building workshops by the Executive for stakeholders as well as JPMTs. This has resulted in more UoT’s applying and being funded for Discretionary Grants.
Number of HET Students completed per year (P1, P2 / Learner placement in workplaces)
94 53 (funded) 69 Target ExceededThe CETA has ensured continued support to Universities of Technology and thus implementation of projects in line with the CETA requirements with learners entering and exiting programmes successfully.
Number of Candidacy programmes entered per year
332314 (funded)
452
Target ExceededThe CETA has provided increased support to entities implementing CETA-funded candidacy programme through capacity building workshops. This has resulted in more entities being compliant with the requirements of the CETA and therefore, more CETA-funded projects being implemented. Candidacy is also a CETA flagship programme.
Number of Candidacy programmes completed per year
57 50 (funded) 51
Target ExceededIn line with the CETA transformation objective, the CETA has increased support to the funded candidacy entities. This has resulted in CETA-funded candidates being successfully registered as professionals with their respective professional councils and information submitted to the CETA in the year under review. Candidacy is also a CETA flagship programme.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
31
3.2 Programme Performance Indicators and Annual Targets for MTEF 2018/19
SUB-PROGRAMME: PARTNERSHIPS
Purpose/Strategic Objective: Strengthened Collaboration and Partnerships for skills development in the construction sector.
NSDS III Linkage: Goal 4.3: Promoting the growth of Public TVET College system that is responsive to sector, local,
regional and national skills needs and priorities Partnerships.
Links To Strategic
Objectives
Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
3.2.1 Supporting and Promoting the growth of Public TVET Colleges
Number of SETA/University partnerships funded by the CETA through the discretionary grants for construction sector programmes.
6 6 6Target Achieved
Number of SETA/TVET College partnerships supported and accredited with CETA to deliver and implement skills development programmes in the construction sector.
48 35 36
Target ExceededThe CETA overachieved as a result of increased engagement with TVET Colleges through various partnership models for implementation of skills development programmes.
Number of CETA Offices opened in TVET Colleges.
12 6 8
Target ExceededThe CETA overachieved as a result of increased engagement with TVET Colleges through various partnership models for implementation of skills development programmes.
3.3 Programme Performance Indicators and Annual Targets for MTEF 2018/19
SUB-PROGRAMME: DEVELOPMENT AND SUPPORT OF SMMEs, CO-OPs, NGOs, CBOs & NPOs
Purpose/ Strategic Objective: A Vibrant Civil Society Engagement in Skills Development within the construction sector.
NSDS III Link: Goal 4.6: Encouraging and supporting co-operatives, small enterprises, worker initiated, NGO and
community training initiatives;
Links To Strategic
ObjectivesPerformance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achieve-ment2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
3.3.1 Encourage and support co-operatives, small enterprises, worker-initiated, NGO, and community training initiatives in the construction sector
Number of SMMEs in the construction sector supported with accreditation.
34 19 25 Target Exceeded
Target exceeded due to sustenance of the CETAs established SMME project through support with Discretionary Grants Funding.
32
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Links To Strategic
ObjectivesPerformance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achieve-ment2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
3.3.1 Encourage and support co-operatives, small enterprises, worker-initiated, NGO, and community training initiatives in the construction sector
Number of capacity building workshops in Skills Development for Trade Union support.
2 2 2 Target Achieved
Two trade unions in the construction sector are supported for skills development related interventions.
2 2 2 Target Achieved
Partnership projects to provide training and development support to co-operatives are supported.
23 6 8 Target Exceeded
This is due to the CETAs continued support for development of co-operatives through skills development activities.
Number of NGOs supported with skills development interventions/programmes within the construction sector.
12 3 7 Target Exceeded
This is due to the CETAs continued efforts to support non-levy paying entities in ensuring skills development activities within the construction sector.
3.4 Programme Performance Indicators and Annual Targets for MTEF 2018/19
SUB-PROGRAMME: PARTNERSHIPS
Purpose/Strategic Objective: Strengthened Collaboration and Partnerships for skills development in the construction sector.
NSDS III Link: Goal 4.3: Promoting the growth of Public TVET College system that is responsive to sector, local, regional
and national skills needs and priorities Partnerships.
Links To Strategic
Objectives
Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achieve-ment2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
3.4.1 Increasing public sector capacity for improved service delivery
Partnerships entered with public institutions to improve service delivery through skills development. 57 10 18
Target Exceeded
In line with the CETAs public sector support strategy, the CETA has allocated discretionary grant funding to 18 public institutions and state agencies for the implementation of construction related skills development projects.
Number of public sector projects in rural areas planned for delivery of skills development programmes in the construction sector.
234 15 38
Target Exceeded
In line with the CETAs priorities to address learners from rural areas, CETA has allocated discretionary grant funding for the implementation of construction related skills development projects.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
33
Links To Strategic
Objectives
Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achieve-ment2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
3.4.1 Increasing public sector capacity for improved service delivery
Establishment of a JPMT as part of Inter-SETA collaboration.
- 1 1 Target Achieved
Conduct one workshop with each of the six councils within the built environment sector.
- 6 6 Target Achieved
3.5 Programme Performance Indicators and Annual Targets for MTEF 2018/19
SUB-PROGRAMME: IMPLEMENTATION OF LEARNING PROGRAMMES
Purpose/Strategic Objective: A skilled and capable workforce in the construction sector.
NSDS III Link: Goal 4.2 - Increasing access to occupationally-directed programmes in the construction sector.
Links To Strategic
ObjectivesPerformance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achieve-ment2018/2019
Deviation from Planned Target to Actu-al Achievement for 2018/2019
3.5.1 Facilitating and supporting employed and unemployed learners with Recognition of Prior Learning programmes
Number of Learners RPLed (assessed) through Recognition of Prior Learning.
1 371 1 266 2 051
Target Exceeded
The CETA has provided increased support to entities implementing projects under the qualifications of the CETA for certifications under RPL. This resulted in an increased understanding of the requirements for RPL certification amongst training providers which led to an increased number of learners being certificated by the CETA.
3.6 Programme Performance Indicators and Annual Targets for MTEF 2018/19
SUB-PROGRAMME: CAREER AND VOCATIONAL GUIDANCE
Purpose/ Strategic Objective: Increased knowledge and interest in the construction careers.
NSDS III Link: Goal 4.8: Building career and vocational guidance;
Links To Strategic
ObjectivesPerformance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achieve-ment2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
3.6.1 Building career and vocational guidance in the construction sector
Number of career guidance events.
30 19 30
Target Exceeded
The CETA has conducted and ensured participation at career guidance events for the promotion of qualifications and careers in the construction sector.
Number of career guidance booklets updated for the construction sector.
1 1 1 Target Achieved
34
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Link to Budget2017/2018 2018/2019
Programme/activity/objective
Budget R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
Budget R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000Learning Programmes & Projects
519,899 329,776 190,123 467,432 680,338 -212,906
PROGRAMME 4: QUALITY ASSURANCE
This programme consists of the following sub-programmes:
4.1 NQF Provider Accreditations4.2 Qualifications review and Development4.3 Monitoring Evaluation
Goal: Implementation of quality assurance processes that will enhance and ensure quality provision of training.
4.1 Sub-Programme NQF PROVIDER ACCREDITATIONS Strategic Objective Accredited skills training in the construction sectorObjective statement To ensure the delivery of quality accredited training by skills development providers in the construction sector.
Baseline Database of accredited training providers.
Justification To ensure quality training within the construction sector.
Links QCTO; NQF Act; Skills Development Act.
NSDS II Link 4.2 Increasing access to occupationally-directed programmes.
4.3 Promoting the growth of a public FET college system that is responsive to sector, local, regional and national
skills needs and priorities.
4.2 Sub-Programme QUALIFICATIONS REVIEW AND DEVELOPMENT
Strategic Objective Qualifications development
Objective statement To develop qualifications that meets the skills needs of the industry.
Baseline Registered CETA qualifications.
Justification Qualifications that meets industry needs are registered and implemented.
Links QCTO; NQF Act; Sector Skills Plan.
NSDS III Link 4.2 Increasing access to occupationally-directed programmes.
4.3 Sub-Programme MONITORING & EVALUATION
Strategic Objective Increased and improved monitoring and evaluation of CETA programmes
Objective statement To ensure the quality of training provision within the construction sector.
Baseline CETA Quality Assurance Policy; CETA Monitoring and Evaluation Policy.
Justification To ensure efficiency and effectiveness of project implementation and training.
Links Government monitoring and evaluation policy framework; NSDS III.
NSDS III Link 4.2 Increasing access to occupationally-directed programmes.
4.5 Encouraging better use of workplace-based skills development.
Item 8. Monitoring and Evaluation.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
35
4.1 Strategic Objective Annual Targets
Goal: Implementation of quality assurance processes that will enhance and ensure quality provision of training.
Strategic Objective
5 Year StrategicPlan Target
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
4.1 Accredited skills training in the construction sector
Number of accredited training providers.
- 300 511
Target ExceededThe CETA has ensured capacitation of training providers through capacity building sessions and experienced even more than expected in terms of attendance.
4.2 Qualifications development
Design, develop and register new occupational qualifications and curriculum.
13 6 13
Target ExceededThe CETA, through its partnership with FITA, has ensured the development of qualification to address the new transitional arrangements in line with the QCTO requirements.
4.3 Increased and improved monitoring and evaluation of CETA programmes
Coordinate site visits for effective monitoring of CETA programmes.
7 4 7 Target exceeded
4.2 Programme Performance Indicators and Annual Targets for MTEF 2018/19SUB-PROGRAMME: NQF PROVIDER ACCREDITATIONS
Purpose/Strategic Objective: Accredited skills training in the construction sector.
NSDS III Link:
4.2 Increasing access to occupationally-directed programmes.
4.3 Promoting the growth of a public TVET college system that is responsive to sector, local, regional and national skills
needs and priorities.
Links To Strategic
Objectives Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
4.1 Accredited skills training in the construction sector
Number of accredited training providers.
- 300 511 Target Exceeded
The CETA has ensured ongoing support and capacitation of training providers through capacity building sessions and experienced even more than expected in terms of attendance.
Maintain a database of CETA accredited training providers.
1 1 1 Target Achieved
Maintain a database of QCTO registered construction qualifications.
1 1 1 Target Achieved
36
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Links To Strategic
Objectives Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
Number of accredited TVET Colleges with the CETA.
- 43 31
Target Not AchievedAlthough the CETA maintained a developmental approach to the accreditation of TVET Colleges, the lack of infrastructure and staff capacity remained a challenge. The CETA is addressing this through skills development centres and lecturer development.
Sub-Programme QUALIFICATIONS REVIEW AND DEVELOPMENT
Strategic Objective Qualifications development
Objective statement To develop qualifications that meets the skills needs of the industry.
Baseline Registered CETA qualifications.
Justification Qualifications that meets industry needs are registered and implemented.
Links QCTO; NQF Act; Sector Skills Plan.
NSDS III Link 4.2 Increasing access to occupationally-directed programmes.
Links To Strategic
Objectives
Performance Indicators
Baseline (Audited / Actual
Performance) 2017/2018
Planned Target
2018/2019
Actual Achievement2018/2019
Deviation from Planned Target to Actual Achievement for 2018/2019
4.2 Qualifications development
Signed SLA with QCTO for the CETA to be the DQP.
3 1 8
Target Exceeded
The CETA has signed eight SLA’s with the QCTO for the development of qualifications.
Number of DQP Projects approved. 2 6 8
Target Exceeded
This is due to the CETA having signed SLA’s with the QCTO for the development of eight qualifications.
Number of registered learnerships maintained with the DHET.
- 60 60 Target Achieved
4.3 Increased and improved monitoring and evaluation of CETA programmes
Monitoring and Evaluation Policy is reviewed and approved annually by the Accounting Authority.
1 1 1 Target Achieved
External Moderation Visits Schedule for CETA programmes is compiled and approved.
7 4 7
Target ExceededThis is due to increased focus on monitoring of CETA funded projects by the organisation
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
37
Link to Budget2017/2018 2018/2019
Programme/activity/objective
Budget R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
Budget R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000Quality Assurance 27,774 14,762 13,012 29,162 15,643 13,519
4. Revenue collection2017/2018 2018/2019
Sources of revenueBudget
R’000
Actual Amount Collected
R’000
(Over)/Under Collection R’000
Budget R’000
Actual Amount Collected
R’000
(Over)/Under Collection
R’000Admin Levy Income (10.5%) 82,601 76,655 5,946 89,386 81,739 7,647
Mandatory Grant Levy Income (20%) 171,905 145,055 26,850 151,976 154,505 -2,529
Discretionary Grant Levy Income (49.5%) 609,968 353,899 256,069 386,718 386,463 255
Fines, Penalties and Forfeits 32,490 21,274 11,216 34,114 20,389 13,725
In-Kind Contributions - 621 -621 - 1,304 -1,304
Other Income - 1,012 -1,012 - 48 -48
Interest Received 71,855 142,169 -70,314 75,663 150,424 -74,761
Total 968,819 740,685 737,858 794,872
5. DIVISIONAL REPORTS
5.1 Core Business ReportThe CETA’s Core Business Division has two distinct and
interlinked departments that enable it to fulfil its mandate of
facilitating and funding skills development in the construction
sector.
CETA Core Business Division performs the following functions:
• Conducts research and analysis of the labour market
within the construction sector including management of
research on skills supply and demand, being a trusted
advisor on skills planning within the sector;
• Undertakes skills planning in line with the Labour Market
Information Intelligence Programme (LMIP), Skills
Planning and Monitoring Framework, Goal 4.1 of the
NSDS III as extended and The Medium Term Strategic
Framework (MTSF) on the identification of medium to
long term skills shortages;
• Development, review and update of the Sector Skills
Plan (SSP) for credible mechanism for skills planning in
the construction sector;
• Facilitate submission of ATR-WSP for claiming of
mandatory grants from CETA by levy paying construction
entities;
• Develop the Strategic Plan and the Annual Performance
Plan (APP) and Service Level Agreement (SLA) of the CETA;
• Prepare and submit the quarterly progress reports on
the APP of the CETA;
• Coordinate the design, development and/or revision
of specified occupational standards and qualifications
and/or part qualifications according to the QCTO
procedure;
• Accredit providers for the qualifications or part
qualifications listed in the schedule in terms of criteria
determined by the QCTO;
• Register assessors to undertake assessment for
specified qualifications or part qualifications in terms of
criteria determined by the QCTO;
• Maintain a comprehensive learner information
management system;
• Upload learner data to the NLRD according to the NLRD
load specifications.
Research, Planning and ReportingThe Research, Planning and Reporting (RP&R) department is
responsible for conducting research; developing the Sector
Skills Plan (SSP) and career guides; analysis of workplace
skills plans (WSPs) and annual training reports (ATRs)
submitted by employers; and compiling quarterly monitoring
reports (QMR) that are submitted to the Department of
Higher Education and Training.
38
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
ResearchCETA has developed a strategic research framework
informed by the sector skills plan. It further reviews,
maintains and manages the research agenda. The CETA
has coordinated the following research projects in the year
under review:
• Conducting tracer studies (destination surveys) for
CETA funded learners as at the end of NSDS III period
in 2016.
• Conduct sectorial analysis and model labour market
skills using labour market information (LMI) and
produce list of occupations in high demand within the
construction sector.
• Develop models for skills forecasting and methodologies
to identify skills needs within the construction sector
covering:
• Economic state of the construction industry;
• Supply side research;
• Demand side research;
• Partnership development;
• Project development’
• And Progression of learners in the construction
sector.
Review and development of the 2018/19 sector skills planCETA engages and promotes current and future skills
needs, including the trends and developments on supply
and demand within the construction sector. In the year
under review, CETA reviewed and maintained skills-planning
mechanism framework consisting of skills supply; skills
demand; skills imbalances, and the context of the economy,
demography and labour force (within construction sector) for
consideration in developing policies on skills planning and
in actual strategic planning processes of CETA. The CETA
Sector Skills Plan (SSP) was updated in line with the labour
market intelligence framework (LMIF) and was approved by
the DHET during the 2018/19 financial year.
This SSP includes the introduction of a new Chapter Three
entitled, “The Occupational shortages and skills gaps” which
was previously referred to as “Extent of Skills Mismatch” and
it has the following sub-sections:
• Occupational shortages and skills gaps
• Extent and nature of supply
• PIVOTAL list
The SSP also contains a list of priority occupations and
qualifications and has included recommendations for priority
interventions for CETA.
The Workplace Skills Plan (WSP) and Annual Training Report (ATR) submission to CETAThe CETA Indicium Skills system was duly opened for SDFs
to commence the capturing process of the WSP on the 1st
of February, 2019, for the 2019/20 financial year. The annual
stakeholder capacity-building sessions were held throughout
the year commencing with the WSP in February and the
project processes and discretionary grants in October.
These sessions took place in all nine provinces.
WSP submissions status reportCETA conducted stakeholder engagement sessions and
support in 2019 with all participating stakeholders. The
results below were achieved by 30 April, 2019 in terms of
submission of applications for mandatory grants for the
2018/19 financial year:
Table 1Mandatory Grant Status
Large (>149)
Medium (50-149)
Small (1-49)
Grand Total
Created 4 20 58 82
Submitted 409 649 1 558 2 616
Grand Total 413 669 1 616 2 698
WSP submissions by organisational size
Table 2 WSP submissions per province
Region Created Submitted Grand Total
Eastern Cape 9 267 276
Free State 3 88 91
Gauteng 32 963 995
KwaZulu-Natal 12 460 472
Limpopo 2 47 49
Mpumalanga 3 100 103
North West 1 64 65
Northern Cape 3 41 44
Western Cape 12 541 553
Unallocated 5 45 49
Total 82 2 616 2 698
LEARNERSHIPS UNEMPLO
YED ENTERED
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
39
Skills Development Facilitator (SDF) registration statusCETA has capacitated Skills Development Facilitators
(SDFs) in the sector on the compilation and submission of
Workplace Skills Plans (WSPs) and Annual Training Reports
(ATRs). CETA’s WSP administrative phase requires that the
Skills Development Facilitators submitting WSPs are duly
appointed by the submitting entity and are approved and
registered with CETA on the Skills System.
Table 2 below is a statistical summary of SDFs registered
on the CETA system as at year-end for the compilation and
submission of the WSP-ATR:
Table 2
Status No of SDF’s
Approved 1 460
Pending 301
Rejected 919
Grand Total 2 680
Performance Information ReportingCETA produced validated quarterly performance reports as per DHET compliance calendar as well as annual performance report for the year under review. In line with the DHET analysis requirements, CETA achieved 31 of the 34 indicators that are measurable or have targets – this indicates that CETA achieved 91% of its annual targets by the end of the financial year.
Baseline comparison of 2017/18 and 2018/19 CETA performance: Learners entered and completedThis comparative analysis demonstrates that in 2017/18, 12 434 learners were registered and reported by CETA. In the 2018/19 financial year the total number of learners entered was 18 816. The percentage progress of learners between these two financial years entered is 34%. In terms of completions comparison, in the 2017/18 financial year a total of 10 353 learners completed CETA programmes whereas in 2018/19, the total completions was at 10 584, showing a percentage progress of 2% from the previous year. The overall learner enrolment and completions in 2018/19 was 22 787 and in the year under review it was 29 400, showing percentage progress of 22% compared to the previous year.
Graph 2 Learning Pathways Entered - 2017/18 vs 2018/19
LEARNERSHIPS UNEMPLO
YED ENTERED
BURSARY UNEMPLOYED ENTERED
INTERNSHIPS UNEMPLOYED ENTERED
SKILLS PROGRAMMES UNEMPLO
YED ENTERED
TOTAL A
RTISAN ENTERED
LEARNERSHIPS W
ORKERS ENTERED
SKILLS PROGRAMMES W
ORKERS ENTERED
CANDIDACY PROGRAMME ENTERED
TVET STUDENT PLACEMENT ENTERED
UNIVERSITY STUDENT PLACEMENT ENTERED
9000-
8000-
7000-
6000-
5000-
4000-
3000-
2000-
1000-
0-
3653
4565
652 759
187 53
7
2016
3341
4681
8330
329
64 262 473
392
332
162
227
100
188
2017/18 2018/19
40
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Graph 3 Learning Pathway Completed - 2017/18 vs 2018/19
Learning Pathway and Quality Development (LPQD) CETA is accredited with the South African Qualifications
Authority (SAQA) as per ETQA Regulations, 1998 and under
quality assurance delegation from the Quality Council for
Trades and Occupations (QCTO) to perform Education
and Training Quality Assurance (ETQA) functions in the
construction sector until 31 March 2020 for construction
National Qualifications Framework (NQF) qualifications.
Pre-NQF construction skills development providers are
accredited by the QCTO. The LPQD unit has two functional
units handling the accreditation process; the Accreditation
Applications and Accreditation Approvals Unit. The unit has
made a number of notable achievements during the year
under review some of which are reflected hereunder:
Occupational Qualification DevelopmentThe QCTO has introduced a basic operational methodology
of assigning occupational qualifications, curriculum
design and development as well as quality assurance
thereof. This new methodology introduced new entities
called Development Quality Partners (DQP-coordinates
occupational qualification and curriculum design and
development) and Assessment Quality Partners (AQP-
performs the quality assurance function).
CETA Occupational Qualifications Development Status
Signed DQP SLA between CETA and QCTO In the year under review, the CETA and QCTO signed the
SLA to facilitate the registration of the following qualifications
on the Occupational Qualifications Framework (OQF):
Table 4Occupational Qualification
DQPIndustry Partner
Completed and submitted to QCTO
Civil Structures Construction Constructor
CETA SAFCEC curriculum; assessment specifications; and the qualification
Civil Road Construction Constructor
CETA SAFCEC curriculum; assessment specifications; and the qualification
Civil Services Constructor
CETA SAFCEC curriculum; assessment specifications; and the qualification
It is planned that the above qualifications will be
recommended by QCTO and registered by SAQA under
the NQF, in the 2018/19 financial year for implementation
within the construction industry. The qualifications are now
recommended by the QCTO for registration.
LEARNERSHIPS UNEMPLO
YED COMPLETED
BURSARY UNEMPLOYED COMPLE
TED
INTERNSHIPS UNEMPLOYED COMPLE
TED
SKILLS PROGRAMMES UNEMPLO
YED COMPLETED
TOTAL A
RTISAN COMPLETED
LEARNERSHIPS W
ORKERS COMPLETED
SKILLS PROGRAMMES W
ORKERS COMPLE
TED
CANDIDACY PROGRAMME COMPLETED
TVET STUDENT PLACEMENT COMPLE
TED
UNIVERSITY STUDENT PLACEMENT COMPLE
TED
RECOGNITION O
F PRIOR LE
ARNING COMPLETED
2017/18 2018/19
3500-
3000-
2500-
2000-
1500-
1000-
500-
0-
2503
3392
66 94 117
82
2351 27
12
914
1960
422
97
2654
668
35 57
1223 1371
46 57 22 94
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
41
Occupational qualifications awaiting registration on the Occupational Qualifications Sub-Framework
Table 5Historically Registered Qualification Occupational Qualification Developed 65409 NC: Building and Civil Construction L3
Civil Road Construction ConstructorCivil Services ConstructorCivil Structures Construction ConstructorQualification IDs will be available after registration
New qualification realignment project completed and submitted to the QCTO
Construction Plant Occupation under SAFCEC completed:Occupation and/or specialisation that the qualification(s) are related to:
Occupation / Specialisation
OFO Code Specialisation Qualifications affected
Status
Earthmoving Plant Operator (General)
2015-734201 Construction Plant Operator
National Certificate: Construction Plant Operator
Re-alignment process completed. The qualification documents will be submitted to the QCTO on Monday 20th May 2019
No.Project Company
Appointed QDF
Cluster OccupationQualification Title
Specialisations
1 Kuyakhula Development Initiatives (PTY) LTD
Ntokozo Lwandle
Cluster 1: Built Environment Professions
Construction Project Manager
National Diploma: Management Civil Engineering Processes
Construction Site Manager Property Development Manager Construction Project Director Building and Construction Manager Construction Manager
2 Kuyakhula Development Initiatives (PTY) LTD
Ntokozo Lwandle
Cluster 1: Built Environment Professions
Quantity Surveyor
Further Education and Training Certificate: Quantity Surveying
Building Economist Electrical Specifications Writer Plumbing Estimator Construction Economist
3 Chrio Jirah Academy CC
Juliet Trebo
Cluster 2: Building Sector
Fibrous Plasterer
National Certificate: Ceiling and Partioning Installation
Fibrous Plasterer Plasterboard Fixer/Stopper Dry Wall Plasterer Exterior Plasterer Ceiling Fixer
4 Chrio Jirah Academy CC
Cluster 2: Building Sector
Concreter National Certificate: Construction Concreting
Grouting/Short-creting Assistant Concrete Worker
5 NTIT Consulting
Onicca Mekwa
Cluster 3: Roads & Civil Construction
Steel Fixer National Certificate: Construction Steelwork
Metal Plate Blender Reinforcing Iron Worker Construction Steel Bender Concrete Reinforcing Steel Placer
6 NTIT Consulting
Onicca Mekwa
Cluster 3: Roads & Civil Construction
Metal Fabricator
National Diploma: Structural Steelwork Detailing
Brass Finisher Metal Fabricator-Welder Structural Steel Tradesperson Template Maker
42
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
No.Project Company
Appointed QDF
Cluster OccupationQualification Title
Specialisations
7 Institute for Local Government & Housing CC
Kedibone Matampi
Cluster 4: Materials Manufacturing
Materials Scientist
National Certificate: Construction Material Manufacturing
Ceramics Scientist Fibre Technologist Polymer Scientist
CETA Assessment Quality Partner (AQP) StatusIn the year under review, CETA has been nominated by
industry to become the AQP for the following occupational
construction qualifications and have submitted the AQP
application to the QCTO for endorsement and approval:
Table 6Occupational Qualification AQP Industry Partner
Civil Engineering: Structures, Roads and Services
CETA SAFCEC
Flooring Installer/Finisher CETA FITA
Construction Road Works CETA SANRAL
Historically registered NQF qualifications quality asssured by the CETASAQA has reregistered 58 CETA qualifications on the NQF,
including the transitional and teach out applicable periods.
Once new occupational qualifications are registered, the
historically registered NQF qualifications will be replaced
and phased out. The NQF qualifications re-alignment
process has begun for historically registered qualifications.
The LPQD unit has drafted an OFO-aligned qualification
framework to map these qualifications to OFO Code and
determine areas that need qualifications. This will inform
CETA regarding the number of DQP projects required to
develop replacement qualifications.
Below is an update on CETA on qualifications in the year under review.
Table 7 QUALIFICATIONS RE-REGISTERED TILL 2023 No. Qual/LP
ID (SAQA)Qual Title (SAQA) NQF
LevelCredits QAP Initial
Registration Date
Registration End Date
Re-Registered (Yes/No)
Qualification Status
1. 20486 National Certificate: Surveying
4 153 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
2. 20487 National Certificate: Hydrographic Surveying
4 145 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
3. 20488 National Certificate: Photogrammetry Surveying
4 141 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
4. 20813 National Certificate: Construction Contracting
2 190 CETA 2018/07/01 2023/06/30 Yes In Development
5. 22991 National Certificate: Refractories Installation
2 120 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
6. 22992 National Certificate: Refractories Masonry
3 120 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
7. 23675 National Certificate: Management of Building Construction Processes
5 204 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
8. 23683 National Diploma: Management of Civil Engineering Construction Processes
5 271 CETA 2018/07/01 2023/06/30 Yes In Development
9. 24133 National Certificate: Construction: Roadworks
2 120 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
43
No. Qual/LP ID (SAQA)
Qual Title (SAQA) NQF Level
Credits QAP Initial Registration
Date
Registration End Date
Re-Registered (Yes/No)
Qualification Status
10. 24173 National Certificate: Construction: Roadworks
3 155 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
11. 24194 National Certificate: Construction Material Manufacturing
4 130 CETA 2018/07/01 2023/06/30 Yes In Development
12. 24196 National Certificate: Construction Material Manufacturing
3 120 CETA 2018/07/01 2023/06/30 Yes In Development
13. 24198 National Certificate: Construction Material Manufacturing
2 120 CETA 2018/07/01 2023/06/30 Yes In Development
14. 24273 National Certificate: Community House Building
2 124 CETA 2018/07/01 2023/06/30 Yes Community House Builder occupational qualification developed.
15. 24295 National Certificate: Timber Roof Erecting
3 120 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed.
16. 24296 National Certificate: Construction: Installation of Floor Coverings
1 120 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
17. 48636 National Diploma: Structural Steelwork Detailing
5 257 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
18. 48734 National Certificate: Architectural Technology
5 120 CETA 2018/07/01 2023/06/30 Yes In Development
19. 48817 Further Education and Training Certification: Construction Materials Testing
4 142 CETA 2018/07/01 2023/06/30 Yes In Development
20. 48961 National Certificate: Construction: Crane Operations
2 121 CETA 2018/07/01 2023/06/30 Yes In Development
21. 49016 National Certificate: Construction: Concreting
3 152 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
22. 49017 National Certificate: Construction Materials Testing
3 120 CETA 2018/07/01 2023/06/30 Yes In Development
23. 49022 National Certificate: Floor Covering Installation
2 141 CETA 2018/07/01 2023/06/30 Yes In Development
23. 49022 National Certificate: Floor Covering Installation
2 141 CETA 2004/06/09 2018/06/30 Yes Occupational Qualification Developed
24. 49058 National Certificate: Construction Materials Testing
2 120 CETA 2018/07/01 2023/06/30 Yes In Development
25. 49063 National Certificate: Geographical Information Sciences
5 121 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
No. Qual/LP ID (SAQA)
Qual Title (SAQA) NQF Level
Credits QAP Initial Registration
Date
Registration End Date
Re-Registered (Yes/No)
Qualification Status
26. 49080 National Certificate: Construction: Advanced Crane Operations
3 123 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
27. 49081 National Certificate: Construction: Advanced Plant Operations
3 123 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
28. 49410 National Certificate: Construction
2 120 CETA 2018/07/01 2023/06/30 Yes In Development
29. 49411 General Education and Training Certificate: Construction
1 120 CETA 2018/07/01 2023/06/30 Yes In Development
30. 49602 National Certificate: Construction: Geotechnical
3 145 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
31. 50022 National Certificate: General Draughting
3 121 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
32. 57162 National Certificate: Aluminium Fabrication and Installation
2 153 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
National Certificate: Ceiling and Partitioning Installation
3 129 CETA 2007/05/02 2018/06/30 Yes To be developed (application prepared).
33. 58247 National Certificate: Ceiling and Partitioning Installation
3 129 CETA 2018/07/01 2023/06/30 Yes In Development
34. 58780 Further Education and Training Certificate: Quantity Surveying
4 145 CETA 2018/07/01 2023/06/30 Yes In Development
35. 63589 National Diploma: Geographical Information Science
5 240 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
36. 65409 National Certificate: Building and Civil Construction
3 140 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
37. 65709 National Certificate: Construction: Steelwork
3 120 CETA 2018/07/01 2023/06/30 Yes In Development
38. 65769 National Certificate: Glazing
2 138 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
39. 65789 National Certificate: Construction Plant Operations
2 120 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
40. 65879 Diploma: Construction Technology
6 240 CETA 2018/07/01 2023/06/30 No Occupational Qualification Developed
41. 65891 Further Education and Training Certificate: Construction: Plumbing
4 120 CETA 2018/07/01 2023/06/30 No Occupational Qualification Developed
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
45
No. Qual/LP ID (SAQA)
Qual Title (SAQA) NQF Level
Credits QAP Initial Registration
Date
Registration End Date
Re-Registered (Yes/No)
Qualification Status
42. 65929 National Certificate: Waterproofing
2 121 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
43. 65949 Further Education and Training Certificate: Supervision of Construction Processes
4 181 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
44. 65969 General Education and Training Certificate: Human Settlements Development
1 120 CETA 2018/07/01 2023/06/30 No Occupational Qualification Developed
45. 65989 Further Education and Training Certificate: Human Settlements Development
4 121 CETA 2018/07/01 2023/06/30 No Occupational Qualification Developed
46. 66071 Further Education and Training Certificate: Computer Aided Drawing Office Practice (CAD)
4 131 CETA 2018/07/01 2023/06/30 No Occupational Qualification Developed
47. 66089 National Certificate: Human Settlements Development
5 130 CETA 2018/07/01 2023/06/30 No Occupational Qualification Developed
48. 77063 National Certificate: Construction Health and Safety
3 133 CETA 2018/07/01 2023/06/30 No Occupational Qualification Developed
49. 83391 National Certificate: Community Development
5 147 CETA 2018/07/01 2023/06/30 Yes Occupational Qualification Developed
50. 65858 National Certificate: Hot Water System Installation
2 122 CETA 2018/07/01 2023/06/30 Yes In Development
NB:
• 50 CETA HRQs are re-registered for another 5 year period
Table 8 QUALIFICATIONS NOT RE-REGISTEREDNo. Qual/LP
ID (SAQA)Qual Title (SAQA) NQF
LevelCredits QAP Initial
Registration Date
Registration End Date
1. 65877 Further Education and Training Certificate: Construction: Timber Vocations
4 120 CETA 2009/01/27 2018/06/30
2. 65878 Further Education and Training Certificate: Construction: Trowel Vocations
4 120 CETA 2009/01/27 2018/06/30
3. 65892 Further Education and Training Certificate: Construction: Painting and Decorating
4 120 CETA 2009/01/27 2018/06/30
4. 65895 Diploma: Construction: Plumbing 6 240 CETA 2009/01/27 2018/06/30
5. 65896 Diploma: Construction: Painting and Decorating
6 240 CETA 2009/01/27 2018/06/30
6. 65897 Diploma: Construction: Trowel Vocations 6 240 CETA 2009/01/27 2018/06/30
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
No. Qual/LP ID (SAQA)
Qual Title (SAQA) NQF Level
Credits QAP Initial Registration
Date
Registration End Date
7. 65898 Diploma: Construction: Timber Vocations 6 240 CETA 2009/01/27 2018/06/30
8. 49053 National Certificate: Supervision of Construction Processes
4 176 CETA until Last Date for Achievement
2009/01/27 2018/06/30
Table 9 QUALIFICATIONS FOR RE-ALIGNMENTNo. Qual/LP
ID (SAQA)Qual Title (SAQA) NQF
LevelCredits QAP Re-
Registration Date
Re-Registration
End Date
Qualification Status
1. 23683 National Diploma: Management of Civil Engineering Construction Processes
5 271 CETA 2018/07/01 2023/06/30 In the Re-Alignment Process
2. 24194 National Certificate: Construction Material Manufacturing
4 130 CETA 2018/07/01 2023/06/30 In the Re-Alignment Process
3. 24196 National Certificate: Construction Material Manufacturing
3 120 CETA 2018/07/01 2023/06/30 In the Re-Alignment Process
4. 24198 National Certificate: Construction Material Manufacturing
2 120 CETA 2018/07/01 2023/06/30 In the Re-Alignment Process
5. 48636 National Diploma: Structural Steelwork Detailing
5 257 CETA 2018/07/01 2023/06/30 In the Re-Alignment Process
6. 48734 National Certificate: Architectural Technology
5 120 CETA 2018/07/01 2023/06/30 To be Re-Alignment
7. 48817 Further Education and Training Certification: Construction Materials Testing
4 142 CETA 2018/07/01 2023/06/30 In the Re-Alignment Process
8. 49016 National Certificate: Construction: Concreting
3 152 CETA 2018/07/01 2023/06/30 To be Re-Alignment
9. 49017 National Certificate: Construction Materials Testing
3 120 CETA 2018/07/01 2023/06/30 To be Re-Alignment
10. 49058 National Certificate: Construction Materials Testing
2 120 CETA 2018/07/01 2023/06/30 To be Re-Alignment
11. 49410 National Certificate: Construction 2 120 CETA 2018/07/01 2023/06/30 To be Re-Alignment
12. 49411 General Education and Training Certificate: Construction
1 120 CETA 2018/07/01 2023/06/30 To be Re-Alignment
13. 58247 National Certificate: Ceiling and Partitioning Installation
3 129 CETA 2018/07/01 2023/06/30 To be Re-Aligned
14. 58780 Further Education and Training Certificate: Quantity Surveying
4 145 CETA 2018/07/01 2023/06/30 In the Re-Alignment Process
15. 65709 National Certificate: Construction: Steelwork
3 120 CETA 2018/07/01 2023/06/30 In the Re-Alignment Process
16. 65949 Further Education and Training Certificate: Supervision of Construction Processes
4 181 CETA 2018/07/01 2023/06/30 To be Re-Alignment
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
47
No. Qual/LP ID (SAQA)
Qual Title (SAQA) NQF Level
Credits QAP Re-Registration
Date
Re-Registration
End Date
Qualification Status
17. 65969 General Education and Training Certificate: Human Settlements Development
1 120 CETA 2018/07/01 2023/06/30 To be Re-Alignment
18. 65989 Further Education and Training Certificate: Human Settlements Development
4 121 CETA 2018/07/01 2023/06/30 To be Re-Alignment
19. 66071 Further Education and Training Certificate: Computer Aided Drawing Office Practice (CAD)
4 131 CETA 2018/07/01 2023/06/30 To be Re-Alignment
20. 66089 National Certificate: Human Settlements Development
5 130 CETA 2018/07/01 2023/06/30 To be Re-Alignment
21. 77063 National Certificate: Construction Health and Safety
3 133 CETA 2018/07/01 2023/06/30 To be Re-Alignment
22. 65858 National Certificate: Hot Water System Installation
2 122 CETA 2018/07/01 2023/06/30 To be Re-Alignment
Table 10 REPLACED QUALIFICATIONSNo. Qual/LP
ID (SAQA)Qual Title (SAQA) NQF
LevelCredits QAP Initial
Registration Date
Registration End Date
Qualification Status
1. 20486 National Certificate: Surveying
4 153 CETA 2001/10/10 2018/06/30 Replaced by new Occupational Qualification
2. 20487 National Certificate: Hydrographic Surveying
4 145 CETA 2001/10/10 2018/06/30 Replaced by new Occupational Qualification
3. 20488 National Certificate: Photogrammetry Surveying
4 141 CETA 2001/10/10 2018/06/30 Replaced by new Occupational Qualification
4. 22991 National Certificate: Refractories Installation
2 120 CETA 2002/12/04 2018/06/30 Replaced by new Occupational Qualification
5. 22992 National Certificate: Refractories Masonry
3 120 CETA 2002/12/04 2018/06/30 Replaced by new Occupational Qualification
6. 23675 National Certificate: Management of Building Construction Processes
5 204 CETA 2003/06/11 2018/06/30 Replaced by new Occupational Qualification
7. 24133 National Certificate: Construction: Roadworks
2 120 CETA 2003/02/19 2018/06/30 Replaced by new Occupational Qualification
8. 24173 National Certificate: Construction: Roadworks
3 155 CETA 2003/02/19 2018/06/30 Replaced by new Occupational Qualification
9. 24273 National Certificate: Community House Building
2 124 CETA 2003/06/11 2018/06/30 Replaced by new Occupational Qualification
10. 24295 National Certificate: Timber Roof Erecting
3 120 CETA 2003/06/11 2018/06/30 Replaced by new Occupational Qualification
11. 24296 National Certificate: Construction: Installation of Floor Coverings
1 120 CETA 2003/06/11 2018/06/30 Replaced by new Occupational Qualification
12. 48961 National Certificate: Construction: Crane Operations
2 121 CETA 2004/12/02 2018/06/30 Replaced by new Occupational Qualification
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
No. Qual/LP ID (SAQA)
Qual Title (SAQA) NQF Level
Credits QAP Initial Registration
Date
Registration End Date
Qualification Status
13. 49022 National Certificate: Floor Covering Installation
2 141 CETA 2004/06/09 2018/06/30 Replaced by new Occupational Qualification
14. 49063 National Certificate: Geographical Information Sciences
5 121 CETA 2005/08/17 2018/06/30 Replaced by new Occupational Qualification
15. 49080 National Certificate: Construction: Advanced Crane Operations
3 123 CETA 2004/12/02 2018/06/30 Replaced by new Occupational Qualification
16. 49081 National Certificate: Construction: Advanced Plant Operations
3 123 CETA 2004/12/02 2018/06/30 Replaced by new Occupational Qualification
17. 49602 National Certificate: Construction: Geotechnical
3 145 CETA 2005/08/17 2018/06/30 Replaced by new Occupational Qualification
18. 50022 National Certificate: General Draughting
3 121 CETA 2006/02/09 2018/06/30 Replaced by new Occupational Qualification
19. 57162 National Certificate: Aluminium Fabrication and Installation
2 153 CETA 2006/11/16 2018/06/30 Replaced by new Occupational Qualification
20. 63589 National Diploma: Geographical Information Science
5 240 CETA 2009/02/18 2018/06/30 Replaced by new Occupational Qualification
21. 65409 National Certificate: Building and Civil Construction
3 140 CETA 2009/03/12 2018/06/30 Replaced by new Occupational Qualification
22. 65769 National Certificate: Glazing 2 138 CETA 2009/04/08 2018/06/30 Replaced by new Occupational Qualification
23. 65789 National Certificate: Construction Plant Operations
2 120 CETA 2009/04/08 2018/06/30 Replaced by new Occupational Qualification
24. 65877 Further Education and Training Certificate: Construction: Timber Vocations
4 120 CETA 2009/01/27 2018/06/30 Replaced by new Occupational Qualification
25. 65878 Further Education and Training Certificate: Construction: Trowel Vocations
4 120 CETA 2009/01/27 2018/06/30 Replaced by new Occupational Qualification
26. 65879 Diploma: Construction Technology
6 240 CETA 2009/01/27 2018/06/30 Replaced by new Occupational Qualification
27. 65891 Further Education and Training Certificate: Construction: Plumbing
4 120 CETA 2009/01/27 2018/06/30 Replaced by new Occupational Qualification
28. 65892 Further Education and Training Certificate: Construction: Painting and Decorating
4 120 CETA 2009/01/27 2018/06/30 Replaced by new Occupational Qualification
29. 65895 Diploma: Construction: Plumbing
6 240 CETA 2009/01/27 2018/06/30 Replaced by new Occupational Qualification
30. 65896 Diploma: Construction: Painting and Decorating
6 240 CETA 2009/01/27 2018/06/30 Replaced by new Occupational Qualification
31. 65897 Diploma: Construction: Trowel Vocations
6 240 CETA 2009/01/27 2018/06/30 Replaced by new Occupational Qualification
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
49
No. Qual/LP ID (SAQA)
Qual Title (SAQA) NQF Level
Credits QAP Initial Registration
Date
Registration End Date
Qualification Status
32. 65898 Diploma: Construction: Timber Vocations
6 240 CETA 2009/01/27 2018/06/30 Replaced by new Occupational Qualification
33. 65929 National Certificate: Waterproofing
2 121 CETA 2009/04/08 2018/06/30 Replaced by new Occupational Qualification
34. 83391 National Certificate: Community Development
5 147 CETA 2011/04/21 2018/06/30 Replaced by new Occupational Qualification
Accreditation applications received and processed by CETAThe Accreditation Applications Unit ensures that upon receipt of an application, the necessary acknowledgements are
processed to the applicants. A total of 511 acknowledgements of receipt were communicated to applicants in the year under
review. Desktop evaluations were conducted on the submitted applications and the entities found compliant were scheduled
for an accreditation site audit visit verification.
Practitioner and Moderator Applications Status Report
Applications received Practitioners applications & registrations Accreditation site visitsNumber of accredited CETA SDPs to date
Applications: Assessors
Registered: Assessors
Applications: Moderators
Registered: Moderators
Number of scheduled visits
Approvals
Eastern Cape 12 15 6 2 2 23 6 33
Free State 8 8 3 4 3 18 9 29
Gauteng 131 153 100 31 19 154 76 178
Kwazulu Natal 41 60 52 13 6 53 27 66
Limpopo 48 42 16 6 3 65 34 74
Mpumalanga 25 34 17 5 3 44 28 64
North West 4 13 4 7 0 27 15 24
Northern Cape
6 2 1 1 0 7 4 9
Western Cape 16 21 17 5 0 15 9 34
TOTAL 291 348 216 73 36 406 208 511
5.2 Projects Division ReportThe core of the division is to ensure the implementation of
Discretionary Grants in order to achieve the Construction
Education and Training Authority (CETA)’s strategic priorities
and other special projects of national interest.
The division is compelled to meet the objectives of CETA in
terms of its strategic priority areas as per the Strategic Plan
as to:
• Support skills development of the youth and workers
into the construction sector.
• Create and promote greater opportunities for women in
the construction sector.
• Create and promote greater participation of people with
disabilities within the construction sector.
• Create and promote greater participation of rural and
township communities in the construction sector.
• Create and promote greater participation of military
veterans in the construction sector.
• Facilitate not only the training through skills development
but also create an enabling environment for creation of
small and medium enterprises in order to create jobs
and uplift employment and alleviate poverty.
The CETA’s Projects Division has the following departments which work towards the achievement of CETA priorities and objectives:
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Learner Contracting and Data Management• Contract Management
• Data/Information Management
Graduate Development• Bursaries
• Internships
• Candidacy
• Higher Education Institution (HEI/HET) Student
Placement
• Technical, Vocational, Education and Training (TVET)
Student Placement
Monitoring and Evaluation• Site Audits
• Workplace Approvals
• Inductions
• Project Monitoring
• External Moderation
• Certification
5.2.1 Performance informationThe Projects Division is responsible for the implementation
of CETA-funded projects and the reporting of the industry-
funded projects that are related to the construction sector.
The CETA identified projects to fund in line with its Sector
Skills Plan, Strategic Plan and Annual Performance Plan.
These skills development interventions include among
others the following: learnerships, apprenticeships, short
skills programmes, recognition of prior learning, bursaries,
candidacy programmes, internships, higher education
training (HET) graduate placement; TVETs graduate
placements, work integrated learning and lecturers support.
To this end, CETA had an audited commitment schedule of
R2.3 billion as at 31 March, 2019.
In the year under review, the CETA reported an achievement
of 40 377 learners reached through various programmes
and strategies. This achievement represents an overall
increase of 37% from the previous financial year. Out of
these learners 25 634 are learners who entered into various
CETA programmes and 14 743 are learners who completed
their programmes during the 2018/19 financial year.
Graph 5 below shows the number of learners who entered the system per learning pathway since 2016/17 up to the 2018/19
financial year.
Graph 5
10000-
9000-
8000-
7000-
6000-
5000-
4000-
3000-
2000-
1000-
0-
3982
Learnerships Artisans Short skillsprogramme
Candidacy Bursaries HETPlacements
TVETplacements
Internships
4629
6828
4681
8330
9524
2278
3814
4956
392
332 45
2 652 75
923
17
100 18
8 434
162 22
7 381
187 53
7 742
2016/17 2017/18 2018/19
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
51
The total number of learners entered into the system has increased across all learning programmes in the financial year compared to that of 2017/18. The increase of learners entered into the system has been consistent since 2016/17, particulary the artisans that enrolled in this financial year. The increase has also been high compared to other years in internships and bursaries due to placement of interns
in China and the Thapelo Madibeng bursary scheme
application respectively.
The number of learners who completed the programme has
also increased since last financial year from 10 584 to 14 743
learners, representing an increase of 39%. This increase has
been possible as a result of Projects Division conducting
external moderation where it is due and the support from interns
who have contributed to the administrative work required to
print the certificates.
5.3 Corporate Services Division ReportCorporate Services is an integral part of the support
structures of the organisation. It is the axil on which the
various departments in the organisation rely to carry out their
various functions and roles. Without a strong-functioning
corporate services division to support the organisation to
carry out its mandate and mission, the organisation would
collapse.
The role of corporate services in the organisation is to
manage and oversee the following departments:
• Human Resources Management Department
• Stakeholder and Public Relationship Department
• Administration and Travel Unit
• Registry and Logistics Unit
• Information and Communication Technology Department
5.3.1 Stakeholder and Public Relationship Management Department
This Department continues to play a critical role in terms of
communication with stakeholders internally and externally of
CETA’s working environment.
The two main strategic tasks of the department is that of
communication and marketing of CETA programmes and
service delivery initiatives, this include amongst other things
receiving and or dissemination of information to all CETA
stakeholders as well as brand management.
During the 2018/2019 financial year, the department enjoyed continued support from CETA provincial nodes and was able to make significant strides in fulfilling its career guidance
mandate amongst other various support activities.
5.3.2 Registry and Logistics UnitThe Registry and Logistics Unit manages all logistical operations for the organisation. It is the registry centre for all document management processes, which is, incoming and outgoing processes. This unit has played a significant role in fleet management, mail management and archiving management within the organisation with the view of improving customer services and management of stakeholder documentation.
5.3.3 Administration and Travel UnitThe purpose of the Travel Unit is to give support to the core business of the organisation by internal travel coordination with the implementation of the travel policy guided by the National Treasury Travel Framework. In line with the above, CETA vigorously implements the cost containment measures as per the treasury regulations.
The unit further gives administrative support in terms of inventory management and facilities, ensuring management of refurbishments, renovations and office movements.
5.3.4 Information and Communication Technology (ICT) DepartmentCETA ICT Department has the responsibility to oversee the technology landscape, which is aimed at enabling a business to exploit opportunities to achieve its goals. The systems’ approach is in such a way that the service delivery is aligned with the overall organisation’s strategy which is cost effective, resilient, and maximises performance. The ICT Department oversees several key systems used to protect and facilitate the organisation’s intellectual property.
Technology is a dynamic and ever-evolutionary field, and in this regard ICT has been faced with exciting challenges to respond to; from security, workstations, to software, networks and so forth.
ICT deliverables during the year under review• Implementation of backup solution to protect all CETA
electronic information assets. The initiative was to respond and align to current and future CETA systems which run on multi-layered platforms such as virtual environment, storage area network fabric, telephony and wireless networks.
• Roll-out of wireless solution for all CETA branches. The project was successfully implemented, and its security enhanced through various encryption and authentication technologies. The wireless connectivity was extended to CETA guests/stakeholders on the dedicated channel for serving Internet browsing services.
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
• Transitioning of Local Area Network and Voice over IP (VoIP) services from one service provider to another.
• Implementation of helpdesk solution, which was revolutionary as it replaced a tedious and manual system of reporting ICT related incidents. The solution has streamlined ICT operations, and made it possible to seamlessly gauge the services of ICT and respond to stakeholders requests.
• Upgrades for all Internet lines have been completed,
which fast track all ICT operations. Head office Internet
link was upgraded from a 5Mb fibre link to a 30Mb fibre
link. All branch offices internet links were upgraded from
an old technology based diginet links to 5Mb fibre links,
which allows collaboration between offices through
various online platforms.
• Move ICT infrastructure for branch offices that relocated
during the financial year. Temporary microwave links
were put in place for Internet and telephony connectivity,
while commission of permanent fibre was sought.
• Continuous review of ICT governance policies and
procedures to continue strengthening Systems of
Corporate Governance and compliance.
• Successfully deployed an ICT system management
solution for enhanced security, high-availability, rapid
deployments, and reporting.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
53
GOVERNANCE
PA
RT
C
54
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
1.Introduction Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act, corporate governance with regard to public entities is applied through the precepts of the Public Finance Management Act (PFMA) and run in tandem with the principles contained in the King’s Report on Corporate Governance.
The Parliament, the Executive and the Accounting Authorities of the public entity are responsible for corporate governance.
CETA remains committed to assuring good corporate governance practices, which seek to continuously promote transparency and accountability to all of its stakeholders. This requires compliance with all the applicable regulations, standards and frameworks as issued by state institutions such as the Department of Higher Education and Training, the National Treasury and the Auditor General.
The necessary internal controls are constantly reviewed, updated and put in place with oversight provided by the relevant committee structures.
2. Portfolio CommitteesThe CETA had no physical engagements with the Portfolio
Committee during the 2018/19 financial year.
3. Executive AuthorityDuring the 2018/19 financial year, the CETA complied with timely submissions of the Sector Skills Plan, Strategic Plan, Annual Performance Plan, Service Level Agreement, Annual Report and Quarterly Reports to the relevant authorities. No non-compliance matters were raised by the authorities for the attention of the CETA.
4. The Accounting AuthorityThe CETA Accounting Authority serves as the uppermost governance structure in the organisation providing oversight to aid in the achievement of the set mandate.
The Accounting Authority monitors the performance of the CETA through the below sub-committees with clearly defined roles:
• Executive Committee
• Governance and Strategy Committee
• Finance Committee
• Audit and Risk Committee
• Core Business Committee
• Remuneration Committee
As part of the annual planning process, the Accounting
Authority held a strategic planning session with the CETA
Management team to deliberate on the strategic objectives
of the organisation. The result of this session was an updated
Strategic Plan and Annual Performance Plan for the financial
year 2019/20.
The Accounting Authority considered key policy priorities
that have guided the development of this Strategic Plan. The
AA is responsible in ensuring that the policy priorities as set
out in this Strategic Plan are in line with the national priorities
or guided by the Medium Term Strategic Framework (MTSF).
The role of the Accounting Authority is clearly defined in the
Constitution of the CETA wherein they must:
• Govern and manage the CETA in accordance with the
PFMA and any other applicable legislation;
• Ensure that the CETA achieves its objectives .
• Provide effective leadership and to ensure that the CETA
implements the goals of the NSDS and the Performance
Agreement with the Minister;
• Provide a strategic direction for the CETA;
• Liaise with stakeholders;
• Ensure that the CETA complies with the relevant statutory
requirements and the requirements of this constitution;
• Manage institutional risk;
• Monitor the performance of the CETA; and
• Ensure that its members and the members of the
committees established by it, comply with the Code of
Conduct.
4.1 Accounting Authority Governance CharterThe CETA submits the governance charter on quarterly
basis in accordance with DHET prescripts. This serves
to confirm the Accounting Authority’s compliance to the
set requirements by the Executive Authority in providing
oversight on the management of the organisation’s affairs.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
55
Composition of the Accounting Authority
Title Name Surname Constituency Date appointed Committee Representation
Mr Raymond CeleChairperson – Ministerial Appointment
01 April 2018 Executive Committee
Ms Vangile Manzini Employer – Government 01 April 2018 Core Business Committee
Ms Sibongile Nxumalo Employer - Government 01 April 2018Executive Committee &Finance Committee
Mr Thembinkosi Madikane Organised Employer 01 April 2018Core Business Committee &Remuneration Committee
Mr Webster Mfebe Organised Employer 01 April 2018Executive Committee &Core Business Committee
Mr Roy Mnisi Organised Employer 01 April 2018Core Business Committee &Governance and Strategy Committee
Mr Piet Matosa Organised Labour 01 April 2018Executive Committee;Core Business Committee &Finance Committee
Mr Sunday Mlangeni Organised Labour 01 April 2018Core Business Committee &Finance Committee
Mr Joseph Montisetse Organised Labour 01 April 2018Core Business Committee &Remuneration Committee
Ms Thembi Ndlovu Organised Labour 01 April 2018Executive Committee;Core Business Committee &Remuneration Committee
Ms Romeshni Govender Professional Body 01 April 2018 Core Business Committee &Governance and Strategy Committee
5. Risk ManagementThe Accounting Authority is conscious of the fact that
delivery against performance objectives requires the
careful identification and management of all strategic and
operational risks in line with the CETA’s vision, mission,
objectives and strategic plans.
The Accounting Authority is accountable for all fiduciary
duties of the organisation. In managing organisational risk,
the Audit and Risk Committee has been entrusted with the
responsibility to provide the oversight function thereof. The
Committee remains critical in providing an independent
oversight function at CETA on matters relating to internal
financial control, internal audits, risk management, reliability
and accuracy of financial reporting, financial policies, and
compliance with legal and regulatory provisions (e.g. PFMA,
Treasury Regulations etc.). An independent member, who is
not part of the CETA staff establishment nor the Accounting
Authority, chairs the Audit and Risk Committee, to ensure the
Committee remains autonomous and functional at all times.
The management of risks is therefore, integrated into our
strategy, planning, budgeting and operational processes
and is taken into account in the funding and reporting
processes on the basis of evaluation of the level of risk.
As the sub-committee of the Accounting Authority, the Audit
and Risk Committee reports and makes recommendations to
the Accounting Authority. The Accounting Authority retains
the responsibility for implementing such recommendations.
6. Internal Audit and Audit & Risk CommitteeThe Internal Audit function is responsible for contributing to
the achievement of the goals and objectives by:
• Assisting management in evaluating their processes
for identifying, assessing and managing the key
operational, financial and compliance risks of CETA;
• Assisting management in evaluating the effectiveness
of internal control systems, including compliance with
internal policies;
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
• Recommending improvements in efficiency to the
internal control systems established by management;
• Keeping abreast of new developments affecting CETA’s
activities and in matters affecting internal audit work;
• Being responsive to CETAs changing needs, striving for
continuous improvement and monitoring integrity in the
performance of its activities.
The Audit and Risk Committee provided an oversight role
in respect of the operations of the CETA. Given below is the
summary of the activities, which the Committee performed in
achieving its objectives/functions:
• Reviewed Quarterly Financial Information, Management
Information and ICT Reports.
• Reviewed the Draft Annual Financial Statements and
Performance Information.
• Reviewed the performance of the Internal Audit function.
• Assured the Risk Management.
• Ensured compliance to requirements.
• Oversaw the implementation of effective internal
controls.
• Reviewed and made recommendations for approval
policies.
The tabled below discloses relevant information on the
audit committee members.
Title Name Surname Constituency No. of meetings attended
Mr Victor Nondabula Independent Member
03
Mr Andile Mahlalutye Independent Member
02
Ms Shaila Hari Independent Member
03
Ms Romeshni Govender AA Member 03
Mr Joseph Montisetse AA Member 03
7. Compliance with Laws and RegulationsThe Public Finance Management Act (PFMA) and the
Treasury Regulations require the Accounting Authority to
ensure that the institution has and maintains effective, efficient
and transparent systems of financial risk management
and internal controls. The implementation of controls and
information systems is essential to the effective discharge of
the management’s responsibilities.
The Accounting Authority continuously reviews current trends
and best practices in relation to corporate governance. As
part of the Accounting Authority’s plans to fulfil its obligations
to demonstrate greater accountability and ensuring higher
quality of service. The Audit and Risk Committee (ARC) has
been established in terms of Section 77 of the PFMA read
together with Chapter 9 of the Treasury Regulations and
Section 10 of the CETA Constitution.
8. Fraud And CorruptionThe Audit and Risk Committee has a responsibility to
review the fraud prevention policy and plan, as well as
the procedures for detecting fraud and whistle blowing.
Assurance is provided in ensuring that there are processes
in place where staff may in confidence, raise concerns
about possible impropriety in matters of financial reporting,
control or any other matters. On this note, recommendations
were made to ensure the review or development of a Fraud
Prevention Policy as well as a Whistleblowing Policy to inform
all stakeholders of the CETA, of the procedures to follow.
9. Minimising Conflict Of Interest(i). A person may not be appointed on the Accounting
Authority, unless the necessary disclosure has been
made that:
(a) such person, directly or indirectly, whether personally
or through his or her spouse, partner or associate,
has a direct or indirect financial interest in the CETA;
and
(b) such person or his or her spouse, partner or associate,
holds an office in or is employed by the CETA,
organisation or other bodies, whether corporate or
incorporate, which has a direct or indirect financial
interest of the nature contemplated in paragraph (a)
(ii). If at any stage during the course of any proceedings
before the Accounting Authority it appears that any
member of the Accounting Authority has or may have
an interest, which may cause such conflict of interest
to arise on his or her part:
(a) such member must forthwith fully disclose the nature
of his or her interest and leave the meeting so as to
enable the remaining members to discuss the matter
and determine whether such member is precluded
from participation in such meeting by reason of a
conflict of interest; and
(b) such disclosure and the decision taken by the
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
57
remaining members regarding such determination
must be recorded in the minutes of the meeting in
question.
(iii). If any member fails to disclose any interest required
by subsection (ii) or, subject to the provisions of that
subsection, if he or she is present at the venue where
a meeting of the Accounting Authority is held or in any
manner whatsoever participates in the proceedings
of the Accounting Authority, the relevant proceedings
of the Accounting Authority are null and void.
10. Code Of ConductIn order to ensure the proper execution of its mandate and
effective compliance with the applicable legislative and
policy framework, the Accounting Authority ensures that
the staff of the CETA and members of all committees and
chambers adhere to the following principles of Governance:
• Effectiveness and efficiency in the execution of
their specified mandates, which require clearly
formulated purpose statements, objectives, roles and
responsibilities;
• Accountability for meeting their specified mandates,
which requires effective accountability mechanisms,
proper management, control and the safeguarding of
finances and resources, as well as regular and accurate
performance reviews, assessments and reporting;
• Integrity and honesty in the management of finances
and resources, which require observing and promoting
high standards of ethical conduct, proper execution of
fiduciary duties, independence from vested interest and
avoiding undue influence and a conflict of interests;
• Transparency and openness, which require fair,
transparent and accessible rules, processes and
procedures; the consistent application of these rules,
processes and procedures; transparent and motivated
decision-making; and timely and accurate provision of
information to a higher authority, stakeholders and the
public;
• Participation in the development and implementation
of public policies, where appropriate, which requires
the active involvement of beneficiaries, stakeholders
and other affected groups in the formulation of policies
and programmes; promoting ownership of policies and
programmes; stakeholder commitment to their success;
and consultation with, and representation on institutional
structures; and
• The capacity and resources to execute their mandate,
which require appropriate selection and capacity
building, in order to ensure that members and staff have
the necessary skills, knowledge and experience.
11. Board SecretaryIt is incumbent upon the board secretary to ensure that
the contents of agendas and meetings are agreed with the
Chairperson. In addition, the Board Secretary must ensure
that:
• Agendas and documents are distributed timeously to
the AA or committee members and attendees;
• Minutes are taken and agreed by members of the AA or
committee;
• All necessary steps are to be taken to ensure that
meetings are held as scheduled;
• The AA adheres to the meeting procedures as reflected
in the CETA Constitution;
• All AA decisions and resolutions are properly recorded
to track and monitor their implementation and follow
through as resolved in the meeting;
• The AA functions effectively. This entails providing the
entire AA with detailed guidance as to the nature and
extent of their duties and responsibilities and, more
importantly, how such duties and responsibilities should
be properly discharged in the best interest of CETA;
• New members are properly inducted;
• Assist in developing mechanisms for providing
continuous education and training for all members in
order to improve and maintain the effectiveness of the
entire AA;
• Provide a central source of guidance and advice to the
AA as a whole on matters of business ethics and good
governance.
12. Social ResponsibilityOn the 18 July, 2018 the CETA participated in Mandela
Day activities and donated sanitary materials to a school in
Tembisa township.
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
13. Audit and Risk Committee ReportWe are pleased to present our report for the financial year ended 31st March 2019. The Audit and Risk Committee is an independent statutory body appointed by the Accounting Authority. Further, duties are delegated to the Committee by the Accounting Authority and are in line with the approved CETA Constitution and the Committee Charter.
Audit and Risk Committee Responsibility The Committee reports that it has complied with its responsibilities arising from Section 38(10) (1) of the Public Finance Management Act (PFMA) and Treasury Regulations 3.1. The Committee also reports that it has adopted appropriate formal terms of reference as its Audit and Risk Committee Charter, has regulated its affairs in compliance with this charter and has discharged its responsibilities as contained therein.
Effectiveness of internal control systems The system of internal control applied by the CETA over financial systems and risk management is effective. We can report that:• The risk management process is in place and that
CETA’s major risks are properly managed• The internal control systems are effective• The Internal Auditors are operating objectively and
independently• Matters requiring management attention are being
addressed.
Management and Monthly/Quarterly Report The Committee is satisfied with the content and quality of monthly and quarterly reports prepared and submitted to National Treasury during the year under review as required by the PFMA.
Evaluation of annual financial statementsThe Committee has:• Reviewed and discussed the audited Annual Financial
Statements to be included in the Annual Report with the AGSA and Management;
• Reviewed Auditor-General of South Africa’s management report and management’s responses thereto;
• Reviewed changes in accounting policies and practices; • Reviewed the CETAs compliance with legal and
regulatory provisions; and • Reviewed the information on predetermined objectives
to be included in the annual report. The Committee was satisfied with the quality of the Annual Financial Statements prepared and presented by Management. The Committee concurs with the conclusions of the AGSA on the Annual Financial Statements and other legal and regulatory matters.
Internal Audit The Internal auditors provided the Committee and management with reasonable assurance as to whether the internal controls remain adequate, effective and appropriate. This is achieved by means of the risk management process, implementation of the internal audit plan, identification of corrective actions and recommended improvements to effective controls and processes.
The Three-year rolling and annual internal audit plans were tabled and approved by the Committee. The Committee is satisfied that the plans represented a clear alignment with key risks and a good balance across the different categories of audits. The internal audit work conducted during the year focused on Finance, Performance Information, Supply Chain Management, Project Management, Human Resources, Information and Communications Technology and Risk Management. The internal audit function provided status progress reports on a quarterly basis to the Committee. The progress reports provided status updates on the implementation of the audit plan, some audit findings and status updates on the implementation of recommendations.
Risk management We can report that the risk management process is receiving the required attention from management. To this end, management presented the strategic risk register to the Committee for consideration. Progress on the implementation of the strategic risk action plans and the tracking of some emerging risks are being monitored on a quarterly basis and presented to the Committee for consideration. Finally, several other risk documents were also presented to the Committee for review, and will be disseminated among employees to ensure that the culture of risk management is embedded at the CETA.
Auditor-General of South Africa The Committee met with the Auditor-General of South Africa and confirms that there were no unresolved issues between the AGSA and management that affect the audit opinion.
The Committee concurs with and accepts the AGSA’s audit report on the Annual Financial Statements, and is of the opinion that the audited Annual Financial Statements should be accepted and read together with the report of the Auditor-General of South Africa.
Mr Victor NondabulaChairperson of the Audit and Risk Committee
Construction Education and Training Authority (CETA)
31 July 2019
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
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HUMAN RESOURCE MANAGEMENT REPORT
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1. IntroductionThe CETA Human Resources Department (HR) provides
overall direction on human resource management issues and
administrative support functions related to the management
of employees for the CETA.
The Department endeavours to be a strategic partner to
the CETA by providing Human Resources programs that
attract, develop, retain, and engage a skilled and diverse
workforce, thereby positioning the CETA as an employer of
choice.
The Human Resources Department is responsible for the
following functions:
• Workforce planning, including recruitment and selection
and talent management
• Employee wellness
• Learning and development
• Employee relations management
• HR service delivery, including HR administration and
benefits administration
• Performance management
• Reward and recognition management
2. Human Resource Oversight Statistics
Bursaries
Profile
African Coloured Indian White Total
Male Female Male Female Male Female Male Female Male Female
Executive 1 2 0 0 0 0 0 0 1 2
Senior Manager 1 0 0 0 0 0 0 0 1 0
Manager 5 3 1 0 0 1 0 0 6 4
Specialist 2 6 0 0 0 0 0 0 2 6
Officer 4 4 0 0 0 0 0 0 4 4
Administrator 2 3 0 0 0 0 0 0 2 3
TOTAL 15 18 1 0 0 1 0 0 16 19
Staff Establishment
ProfileAfrican Indian White Coloured Total
Male Female Male Female Male Female Male Female Male FemaleExecutive 1 2 0 0 0 0 0 0 1 2
Senior Manager 2 0 0 0 0 0 0 0 2 0
Manager 5 3 0 1 0 0 1 1 6 5
Coordinator 5 4 0 0 0 0 0 0 5 4
Specialist 5 9 0 1 0 0 0 0 5 10
Officer 12 18 0 0 0 0 0 1 12 19
Administrator 9 14 0 0 0 1 1 2 10 17
Other 1 13 0 0 0 0 0 0 1 13
Temporary staff - Intern 18 42 0 0 0 0 0 1 18 43
TOTAL 58 105 0 2 0 1 2 5 60 113
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
61
Appointments
Profile African Coloured Indian White Total
Male Female Male Female Male Female Male Female Male Female
Senior Manager 1 0 0 0 0 0 0 0 1 0
Manager 0 0 0 1 0 0 0 0 0 1
Coordinator 4 2 0 0 0 0 0 0 4 2
Specialist 2 1 0 0 0 1 0 0 2 2
Officer 0 1 0 0 0 0 0 0 0 1
Administrator 1 2 0 0 0 0 0 0 1 2
General Assistant 0 2 0 0 0 0 0 0 0 2
Intern 18 40 0 1 0 0 0 0 18 41
TOTAL 26 48 0 2 0 1 0 0 26 51
Promotions
African Coloured Indian White Total
Profile Male Female Male Female Male Female Male Female Male Female
Senior Housekeeper 0 1 0 0 0 0 0 0 0 1
TOTAL 0 1 0 0 0 0 0 0 0 1
Terminations
Profile African Coloured Indian White Total
Male Female Male Female Male Female Male Female Male Female
Executive 1 1 0 0 0 0 0 0 1 1
Specialist 0 1 0 0 0 0 0 0 0 1
Administrator 1 0 0 0 0 0 0 0 1 0
Intern 2 4 0 0 0 0 0 0 2 4
TOTAL 4 6 0 0 0 0 0 0 4 6
Disabled Staff
Male Female
Levels Current Target Current Target
Top Management
Senior Management
Professional qualified
Skilled
Semi-skilled 1 1
Unskilled 1
TOTAL 1 2
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Personnel cost by salary bandLevel Personnel Expenditure (R’000) % of personnel exp. to total
personnel cost (R’000)No. of employees Average personnel cost
per employee (R’000)Top Management 4,049 31% 3 1,350
Senior Management 1,914 22% 2 957
Professional qualified 32,941 22% 34 969
Skilled 17,009 12% 31 549
Semi-skilled 10,692 8% 29 369
Unskilled 2,881 5% 14 206
TOTAL 100% 113
Employment and vacanciesProgramme/activity/objective 2018/2019 Approved
Posts2018/2019
No. of Employees
2018/2019 Vacancies % of vacancies
Top Management 4 3 1 25%
Senior Management 3 2 1 33%
Professional qualified 59 33 27 41%
Skilled 93 30 64 72%
Semi-skilled 47 26 19 40%
Unskilled 20 14 6 30%
Interns 88 59 29 33%
TOTAL 314 167 147 46,88%
Employment changesProvide information on changes in employment over the financial year. Turnover rates provide an indication of trends in
employment profile of the public entity.
Salary Band Employment at beginning of period Appointments Terminations Employment at end of the period
Top Management 3 2 2 3
Senior Management 1 1 2
Professional qualified 33 1 1 33
Skilled 30 30
Semi-skilled 27 1 26
Unskilled 12 2 14
Interns 4 61 6 59
Total 110 67 10 167
Reasons for staff leavingReason Number % of total no. of staff leaving
Death 2 1.16%
Resignation 5 2.91%
Dismissal 1 0.58%
Retirement 0 0
Ill health 0 0
Expiry of contract 2 1.16%
Other 0 0
Total 10
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63
Labour Relations: Misconduct and Disciplinary ActionNature of disciplinary Action Number
Verbal Warning 9
Written Warning 7
Final Written warning 4
Dismissal 1
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
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FINANCIAL INFORMATION
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
1. Report of the Auditor-General to Parliament on the Construction Education and Training Authority (CETA) Report on the audit of the financial statements
Opinion1. I have audited the financial statements of the Construction
Education and Training Authority set out on pages
69 to 108 which comprise the statement of financial
position as at 31 March 2019, the statement of financial
performance, statement of changes in net assets,
statement of cash flows and statement of comparison of
budget and actual amounts for the year then ended, as
well as the notes to the financial statements, including a
summary of significant accounting policies.
2. In my opinion, the financial statements present fairly, in
all material respects, the financial position of the public
entity as at 31 March 2019, and its financial performance
and cash flows for the year then ended in accordance
with the Standards of Generally Recognised Accounting
Practice (Standards of GRAP) and the requirements of
the Public Finance Management Act of South Africa, 1999
(Act No. 1 of 1999) (PFMA) and the Skills Development
Act of South Africa, 1998 (Act No. 97 of 1998) (SDA).
Basis for opinion3. I conducted my audit in accordance with the International
Standards on Auditing (ISAs). My responsibilities under
those standards are further described in the auditor-
general’s responsibilities for the audit of the financial
statements section of this auditor’s report.
4. I am independent of the entity in accordance with
sections 290 and 291 of the International Ethics
Standards Board for Accountants’ Code of ethics for
professional accountants (IESBA code), parts 1 and 3 of
the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants
(including International Independence Standards)
and the ethical requirements that are relevant to my
audit in South Africa. I have fulfilled my other ethical
responsibilities in accordance with these requirements
and the IESBA code.
5. I believe that the audit evidence I have obtained is
sufficient and appropriate to provide a basis for my
opinion.
Emphasis of matter6. I draw attention to the matter below. My opinion is not
modified in respect of this matter.
Restatement of corresponding figures7. As disclosed in note 18 to the financial statements, the
corresponding figures for 31 March 2018 were restated
as a result of an error in the financial statements of the
public entity at, and for the year ended, 31 March 2019.
Responsibilities of the accounting authority for the financial statements8. The board of directors, which constitutes the accounting
authority, is responsible for the preparation and fair
presentation of the financial statements in accordance
with the Standards of GRAP and the requirements of the
PFMA and the SDA, and for such internal control as the
accounting authority determines is necessary to enable
the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
9. In preparing the financial statements, the accounting
authority is responsible for assessing the CETA’s ability to
continue as a going concern, disclosing, as applicable,
matters relating to going concern and using the going
concern basis of accounting unless the appropriate
governance structure either intends to liquidate the
public entity or to cease operations, or has no realistic
alternative but to do so.
Auditor-general’s responsibilities for the audit of the financial statements10. My objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes my opinion.
Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance
with the ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or
in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these financial statements.
11. A further description of my responsibilities for the audit
of the financial statements is included in the annexure to
this auditor’s report.
Report on the audit of the annual performance reportIntroduction and scope12. In accordance with the Public Audit Act of South Africa,
2004 (Act No. 25 of 2004) (PAA) and the general
notice issued in terms thereof, I have a responsibility to
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
67
report material findings on the reported performance
information against predetermined objectives for selected
programmes presented in the annual performance
report. I performed procedures to identify findings but
not to gather evidence to express assurance.
13. My procedures address the reported performance
information, which must be based on the approved
performance planning documents of the public
entity. I have not evaluated the completeness and
appropriateness of the performance indicators/measures
included in the planning documents. My procedures also
did not extend to any disclosures or assertions relating
to planned performance strategies and information in
respect of future periods that may be included as part of
the reported performance information. Accordingly, my
findings do not extend to these matters.
14. I evaluated the usefulness and reliability of the reported
performance information in accordance with the criteria
developed from the performance management and
reporting framework, as defined in the general notice,
for the following selected programmes presented in the
annual performance report of the public entity for the
year ended 31 March 2019:
Programme Pages in the annual
performance report
Programme 3 – Learning
Programmes and Projects
25 – 34
15. I performed procedures to determine whether the
reported performance information was properly
presented and whether performance was consistent
with the approved performance planning documents.
I performed further procedures to determine whether
the indicators and related targets were measurable and
relevant, and assessed the reliability of the reported
performance information to determine whether it was
valid, accurate and complete.
16. I did not raise any material findings on the usefulness
and reliability of the reported performance information
for this programme:
• Programme 3 – learning programmes and projects
Other matter17. I draw attention to the matter below.
Achievement of planned targets18. Refer to the annual performance report on pages 18 to
37 for information on the achievement of planned targets
for the year and explanations provided for the under- or
overachievement of a number of targets.
Report on the audit of compliance with legislation
Introduction and scope19. In accordance with the PAA and the general notice
issued in terms thereof, I have a responsibility to report
material findings on the compliance of the public entity
with specific matters in key legislation. I performed
procedures to identify findings but not to gather evidence
to express assurance.
20. I did not raise material findings on compliance with the
specific matters in key legislation set out in the general
notice issued in terms of the PAA.
Other information21.The accounting authority is responsible for the other
information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report.
22. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.
23. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.
24. I did not receive the other information prior to the date of this auditor’s report. When I do receive and read this information, and if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.
Internal control deficiencies25. I considered internal control relevant to my audit of the
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ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
financial statements, reported performance information
and compliance with applicable legislation; however, my
objective was not to express any form of assurance on it.
There were no internal control deficiencies that resulted
in the findings on compliance with legislation.
Pretoria
31 July 2019
Annexure – Auditor-general’s responsibility for the audit1. As part of an audit in accordance with the ISAs, I exercise
professional judgement and maintain professional
scepticism throughout my audit of the financial
statements, and the procedures performed on reported
performance information for selected programmes and
on the public entity’s compliance with respect to the
selected subject matters.
Financial statements2. In addition to my responsibility for the audit of the financial
statements as described in this auditor’s report, I also:
• identify and assess the risks of material misstatement of
the financial statements whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for my opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control
• obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the public entity’s internal control
• evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the board of directors,
which constitutes the accounting authority
• conclude on the appropriateness of the use of the going
concern basis of accounting by the board of directors,
which constitutes the accounting authority, in the
preparation of the financial statements. I also conclude,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions
that may cast significant doubt on the CETA’s ability to
continue as a going concern. If I conclude that a material
uncertainty exists, I am required to draw attention in my
auditor’s report to the related disclosures in the financial
statements about the material uncertainty or, if such
disclosures are inadequate, to modify the opinion on the
financial statements. My conclusions are based on the
information available to me at the date of this auditor’s
report. However, future events or conditions may cause
the public entity to cease continuing as a going concern
• evaluate the overall presentation, structure and content
of the financial statements, including the disclosures,
and whether the financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation
Communication with those charged with governance3. I communicate with the accounting authority regarding,
among other matters, the planned scope and timing of
the audit and significant audit findings, including any
significant deficiencies in internal control that I identify
during my audit.
4. I also confirm to the accounting authority that I have
complied with relevant ethical requirements regarding
independence, and communicate all relationships and
other matters that may reasonably be thought to have
a bearing on my independence and, where applicable,
related safeguards.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
69
REPORT ON THE FINANCIAL STATEMENTS
2. Annual Financial Statements
Contents
Statement of Financial Performance 70
Statement of Financial Position 71
Statement of Changes in Net Assets 72
Statement Cash Flows 73
Statement of Comparisons of Budget and Actual Amounts 74
Accounting policies 75
Notes to the Annual Financial Statements 83
Remuneration to Executive Management and Accounting Authority 100
70
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2019
MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000Revenue
Revenue from non-exchange transactions Transfer revenue
Levies 2 627,636 575,609
Fines, Penalties and Forfeits 3 20,389 21,274
In-Kind Contributions - Facilities 21 1,304 621
Total revenue from non-exchange transactions 649,329 597,504
Revenue from exchange transactions
Other Income 4 48 1,012
Interest received 5 150,424 142,169
Total revenue from exchange transactions 150,472 143,181 Total revenue 799,801 740,685 Expenditure
Administration Expenses 6 -81,837 -74,236
Employer Grant Expenses 7 -89,323 -85,150
Discretionary Grant Expenses 7 -695,981 -344,538
Total expenditure -867,141 -503,924 Operating Surplus/(Deficit) -67,340 236,761 Surplus/(Deficit) for the year 1 -67,340 236,761
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
71
STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000
Assets
Current Assets Cash and Cash equivalents 8 2,249,453 2,292,861
Receivables from non-exchange transactions 9.1 1,058 9,022
Receivables from exchange transactions 9.2 382 711
Consumables 10 12,482 1,340
2,263,376 2,303,935
Non-Current Assets
Property, Plant and Equipment 11 10,563 8,134
Intangible Assets 12 198 371
10,761 8,506
Total Assets 2,274,137 2,312,441
Liabilities Current Liabilities
Payables from non-exchange transactions 13.1 126,401 68,735
Payables from exchange transactions 13.2 8,865 11,466
NARYSEC Funds 14.1 - 725
Provisions 15 71,099 95,244
206,366 176,170 Total Liabilities 206,366 176,170 2,067,771 2,136,271
Funds and Reserves Administration reserve 10,761 8,506
Employer Grant reserve 506 352
Discretionary reserve 2,056,504 2,127,413
Total Net Assets 2,067,771 2,136,271
72
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEARST
ATEM
ENT
OF
CH
ANG
ES IN
NET
ASS
ETS
FOR
TH
E YE
AR E
ND
ED 3
1 M
ARC
H 2
019
Adm
inis
tratio
n Em
ploy
er
Dis
cret
iona
ry
U
napp
ropr
iate
d
NO
TE
rese
rve
Gra
nt
rese
rveG
rant
re
serv
e To
tal r
eser
ves
surp
lus
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00Ba
lanc
e at
01
April
201
7
10,0
58
621
1,88
8,83
1 1,
899,
509
-
Cha
nges
in n
et a
sset
sur
plus
for t
he y
ear
-
-
-
-
236,
761
Allo
catio
n of
una
ppro
pria
ted
surp
lus
1 3,
040
59
,905
17
3,81
6
236
,761
-
236,
761
Exce
ss re
serv
es tr
ansf
erre
d (to
)/fro
m
-4,
592
-6
0,17
4
64,7
66
Tota
l Cha
nges
-1,5
00
-265
24
2,58
3
240
,818
-
Bala
nce
at 3
1 M
arch
201
8 (R
esta
ted)
8,50
6
352
2,
127,
413
2,1
36,2
71
Adju
stm
ents
to o
peni
ng b
alan
ce
-Allo
catio
n to
ope
ning
bal
ance
-27
2
-
-887
-1,1
59
-
Bala
nce
at 0
1 Ap
ril 2
018
8,
234
35
2
2,12
6,52
6
2
,135
,112
-
Cha
nges
in n
et a
sset
sur
plus
for t
he y
ear
-
-
-
-
-6
7,34
0
Allo
catio
n of
una
ppro
pria
ted
surp
lus
1
3
,245
64
,691
-1
35,2
76
-67
,340
67
,340
Exce
ss re
serv
es tr
ansf
erre
d (to
)/fro
m
-7
18
-64,
537
65
,255
Tota
l Cha
nges
2,25
5
154
-7
0,90
8
-68
,499
-
Bala
nce
at 3
1 M
arch
201
9
10,7
61
506
2,
056,
504
2,0
67,7
71
Allo
catio
n to
ope
ning
bal
ance
, rel
ates
to a
djus
tmen
ts in
rese
rves
resu
lting
from
set
tlem
ents
of p
rior y
ear p
rovi
sion
s, b
ad d
ebts
etc
.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
73
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2019
MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000
Cash flow from operating activities
Receipts Grants 646,554 595,182
Interest and Other Income 150,424 143,181
796,978 738,364
Payments Employee costs -115,888 -91,708
Payments to suppliers and stakeholders -716,931 -375,842
-832,819 -467,551
Net cash flow from operating activities 16 -35,841 270,813
Cash flow from investing activities Purchase of property, plant and equipment 11 -7,534 -2,701
Net cash flows from loss/sale of property, plant and equipment 63 12
Purchase of other intangible assets 12 -96 -468
Net cash flows from investing activities -7,567 -3,157 Cash flow from financing activities - - Net cash flow from financing activities - -
Net increase/(decrease) in cash and cash equivalents -43,408 267,656 Cash and cash equivalents at the beginning of the year 2,292,861 2,025,205
Cash and cash equivalents at the end of the year 8 2,249,453 2,292,861
74
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEARST
ATEM
ENT
OF
CO
MPA
RIS
ON
OF
BUD
GET
AN
D A
CTU
AL A
MO
UN
TS F
OR
TH
E YE
AR E
ND
ED 3
1 M
ARC
H 2
019
Fina
l Bud
get a
s
Actu
al a
mou
nts
N
OTE
at
Mar
ch 2
019
as a
t Mar
ch 2
019
Diff
eren
ce
R
‘000
R
‘000
R
‘000
Stat
emen
t of F
inan
cial
Per
form
ance
Rev
enue
Rev
enue
from
exc
hang
e tra
nsac
tions
Oth
er In
com
e
-
48
48
Inte
rest
rece
ived
- C
PD
7
5,66
3
15
0,42
4
74,
761
Tota
l rev
enue
from
exc
hang
e tra
nsac
tions
75,
663
150,
472
Rev
enue
from
non
-exc
hang
e tra
nsac
tions
Tran
sfer
reve
nue
In-K
ind
Con
tribu
tions
- Fa
cilit
ies
-
1
,304
1,3
04
Levi
es
628
,081
627,
636
-4
45
Fine
s, P
enal
ties
and
Forf
eits
34,
212
20
,389
-1
3,82
3
Tota
l rev
enue
from
non
-exc
hang
e tra
nsac
tions
6
62,2
93
64
9,32
9
Tota
l Rev
enue
29
737
,956
799,
801
Expe
nditu
re
A
dmin
istra
tion
Expe
nses
29
-8
9,38
6
-8
1,83
7
7
,549
Empl
oyer
Gra
nt E
xpen
ses
29
-1
51,9
76
-8
9,32
3
62,
654
Dis
cret
iona
ry G
rant
Exp
ense
s 29
-496
,594
-
695,
981
199
,388
Tota
l exp
ense
s
-7
37,9
56
-86
7,14
1
Surp
lus/
(Defi
cit)
0
-67,
340
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
75
Accounting Policies
1. Presentation of Financial Statements
The Financial statements have been prepared in accordance
with the Standards of Generally Recognised Accounting
Practice (GRAP), issued by the Accounting Standards Board
in accordance with Section 91(1) of the Public Finance
Management Act (Act 1 of 1999).
These Financial statements have been prepared on an
accrual basis of accounting and are in accordance with
historical cost convention unless specified otherwise. They
are presented in South African Rand. Comparative figures
are disclosed.
In the absence of an issued and effective Standard of GRAP,
accounting policies for material transactions, events or
conditions were developed in accordance with paragraphs
8, 10 and 11 of GRAP 3 read with Directive 5. Assets,
liabilities, revenues and expenses were not offset, except
where offsetting is either required or permitted by a Standard
of GRAP.
A summary of the significant accounting policies, which
have been consistently applied in the preparation of these
Financial Statements, are disclosed below.
1.1 Going concern assumptionThese Financial statements have been prepared based on
the expectation that the CETA will continue to operate as a
going concern for at least the next 12 months.
2. Revenue from non-exchange transactions
2.1 Skills Development Levy Income The accounting policy for the recognition and measurement
of skills development levy income is based on the Skills
Development Act, Act No 97 of 1998, as amended and
the Skills Development Levies Act, Act No 9 of 1999, as
amended.
In terms of section 3(1) and 3(4) of the Skills Development
Levies Act, 1999 (Act No. 9 of 1999) as amended, registered
member companies of the CETA pay a skills development
levy of 1% of the total payroll cost to the South African
Revenue Services (SARS), who collect the levies on behalf
of the Department. Companies with an annual payroll cost
less than R500 000 are exempted in accordance with section
4(b) of the Levies Act as amended, effective 1 August 2005.
80% of Skills Development Levies are paid over to the CETA
(net of the 20% contribution to the National Skills Fund
(NSF)). The CETA was not in a position to verify that SARS
has collected all potential skills levy income.
Skills Development Levy (SDL) transfers are recognised on
an accrual basis when it is probable that future economic
benefits or service potential will flow to the CETA and these
benefits can be measured reliably. This occurs when the
Department makes an allocation to the CETA as required by
Section 8 of the Skills Development Levies Act, 1999 (Act No.
9 of 1999) as amended.
Revenue is adjusted for transfers between the SETAs due to
employers changing SETAs. Such adjustments are separately
disclosed as inter-SETA transfers. The amount of the inter-
SETA adjustment is calculated according to the most recent
Standard Operating Procedure issued by the Department.
Skills Development Levy (SDL) transfers are recognised on
an accrual basis when it is probable that future economic
benefits or service potential will owe the CETA and these
benefits can be measured reliably. This occurs when the
Department of Higher Education makes an allocation to the
CETA, as required by Section 8 of the Skills Development
Levies Act, 1999 (Act No. 9 of 1999) as amended.
2.2 Interest and penaltiesInterest and penalties are economic benefits or service
potential received or receivable by CETA, as determined
by legislation, as a consequence of the breach of laws or
regulations and is recognised on an accrual basis.
2.3 Conditional Grants and receiptsRevenue received from conditional grants, donations and
funding are recognised as revenue to the extent that the
CETA has complied with any of the conditions embodied
in the agreement. To the extent that the conditions have not
been met, a liability is recognised.
2.4 Funds allocated by the National Skills Fund for Special ProjectsFunds transferred by the National Skills Fund (NSF) are
accounted for in the financial statements of the CETA as a
liability until the related eligible special project expenses are
incurred. The liability is reduced by any project expenditure
incurred and recognised as revenue. Property, plant and
76
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
equipment acquired for NSF Special Projects are capitalised
in the financial statements of the CETA, as the CETA controls
such assets for the duration of the project. Such assets may
however only be disposed of in terms of agreement and
specific written instructions by the NSF.
2.5 Inter-SETA TransfersRevenue is adjusted for transfers of employers between SETAs
that arise due to incorrect allocation to a SETA on registration
for skills development levy or changes to their business that
result in a need to change SETAs. Such adjustments are
disclosed separately as inter-SETA transfers. The amount
of the inter-SETA transfers is calculated according to the
most recent Standard Operating Procedure as issued by the
Department of Higher Education and Training.
2.6 Discretionary grantsThe funding for discretionary grants and projects stems
from the 49.5% of the total levies paid by the employers,
levy grants that are not claimed by employers, the surplus
of administration levies not utilised, investment income, and
other income generated by the CETA.
CETA may out of any surplus monies determine and allocate
discretionary grants to employers, education and training
providers and workers of the employers who have submitted
an application for a discretionary grant in the prescribed
form within the agreed upon cut - off period. The grant
payable and the related expenditure are recognised when
the application has been approved, implementation has
taken place and the conditions have been met, creating an
obligation to pay. Up to a maximum of 7.5% of the allocated
discretionary grant amount shall be budgeted to administer
the project by the employer or training provider.
Discretionary grant support costs
The 7.5% limit shall not be applicable to the following:
• Consulting to support CETA strategic goals
• Expenditure incurred as a result of support to
conceptualisation, implementation and conclusion
• Launches
• Legal costs
• Salaries of core business staff
• Travel and accommodation
3.Revenue from exchange transactionsRevenue from exchange transactions is recognised when
it is probable that future economic benefits or service
potential will flow to the CETA and these benefits can be
measured reliably. Revenue is measured at the fair value of
the consideration received or receivable. The only exchange
revenue received by the CETA is the interest earned on the
investment when the conditions are met.
3.1 Investment incomeInterest income is accrued on a time proportion basis, taking
into account the principal outstanding and the effective
interest rate over the period to maturity.
4. Project expenditureProject expenditure comprise:
• Costs that relate directly to the specific contract;
• Costs that are attributable to contract activity in general
and can be allocated to the project; and
• Such other costs as are specifically chargeable to CETA
under the terms of the contract.
Such costs are allocated using methods that are systematic
and rational and are applied consistently to all costs having
similar characteristics.
Project costs are recognised as expenses in the period
the invoice is received and approved. A Receivable is
recognised net of a provision for irrecoverable amounts
for incentive and other payments made to the extent of
expenses not yet incurred in terms of the contract.
At the end of the financial period any unspent or uncommitted
funds must be transferred to the National Skills Fund
Authority with an allowance of 5% of the uncommitted funds
that will be carried over to the next financial year, except
where a request to carry forward the uncommitted funds has
been lodged as per the Grant Regulations requirements.
The unspent funds are determined by taking the surplus
as stated in the Statement of Financial Performance for
the financial period under review less the commitments for
training of learners in programmes funded from discretionary
funds.
4.1 Mandatory grantsThe grants payable and the related expenditure are
recognised when the employer has submitted an application
for a grant in the prescribed form within the prescribed cut
off period as the payment then becomes probable. The grant
is equivalent of 20% of the total levies paid by the employer
during the corresponding financial period for the skills
implementation grant respectively.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
77
4.2 Administrative expenditureThe funding for administrative expenditure is derived from
10.5% of the total levies paid by the employers. Administration
expenses consist of the operational expenditure incurred by
the CETA in delivering its mandate.
5. Property, plant and equipment RecognitionProperty, plant and equipment are tangible non-current
assets (including infrastructure assets) that are held for use
in the production or supply of goods or services, rental to
others, or for administrative purposes, and are expected to
be used during more than one period.
The cost of an item of property, plant and equipment is
recognised as an asset when it is probable that future
economic benefits or service potential associated with the
item will flow to the entity and the cost of the item can be
measured reliably.
Initial MeasurementProperty, plant and equipment is initially measured at
cost. The cost of an item of property, plant and equipment
is the purchase price and any other costs attributable to
bring the asset to the location and condition necessary for
it to be capable of operating in the manner intended by
management. Trade discounts and rebates are deducted in
arriving at the cost.
Property, plant and equipment which has a cost price less
than R 2 000 are expensed and not capitalised. Where an
asset is acquired through a non-exchange transaction, its
cost is its fair value as at date of acquisition. Where an item
of property, plant and equipment is acquired in exchange for
a non-monetary asset or monetary assets, or a combination
of monetary and non-monetary assets, the asset acquired
is initially measured at fair value (the cost). If the acquired
item’s fair value was not determinable, it’s deemed cost is the
carrying amount of the asset(s) given up.
The initial estimate of the costs of dismantling and removing
the item and restoring the site on which it is located is also
included in the cost of property, plant and equipment, where
the entity is obligated to incur such expenditure, and where
the obligation arises as a result of acquiring the asset or
using it for purposes other than the production of inventories.
Recognition of costs in the carrying amount of an item of
property, plant and equipment ceases when the item is in
the location and condition necessary for it to be capable of
operating in the manner intended by management. Major
spare parts of equipment which are expected to be used
for more than one period are included in property, plant and
equipment.
Subsequent measurementBuilding machinery, furniture and fixtures, motor vehicle,
office equipment, computer equipment and computer
network are carried at cost less accumulated depreciation
and any impairment losses except for land and buildings
which are carried at revalued amount being the fair value
at the date of revaluation less any subsequent accumulated
depreciation and subsequent accumulated impairment
losses.
RevaluationWhen an item of property, plant and equipment is revalued,
any accumulated depreciation at the date of the revaluation
is eliminated against the gross carrying amount of the asset
and the net amount restated to the revalued amount of the
asset. Any increase in an asset’s carrying amount, as a result
of a revaluation, is credited directly to a revaluation surplus.
The increase is recognised in surplus or deficit to the extent
that it reverses a revaluation decrease of the same asset
previously recognised in surplus or deficit.
Any decrease in an asset’s carrying amount, as a result of a
revaluation, is recognised in surplus or deficit in the current
period. The decrease is debited directly to a revaluation
surplus to the extent of any credit balance existing in the
revaluation surplus in respect of that asset. The revaluation
surplus in equity related to a specific item of property, plant
and equipment is transferred directly to retained earnings
when the asset is derecognised.
DepreciationProperty, plant and equipment are depreciated on the straight
line basis over their expected useful lives to their estimated
residual value. The depreciation of assets commences on
the date that the asset is available for use, even if it is not
yet in use.
Depreciation is calculated and provided for on an annual
basis. If the residual value of an asset is at least equal to its
carrying amount, depreciation amount is zero. Depreciation
of an asset ceases at the date that the asset is derecognised.
Any gains or losses arising from de-recognition of an asset
is included in profit or loss when the item is derecognised.
Useful lives are reviewed on an annual basis.
78
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Depreciation ratesThe depreciation methods and average useful lives of
property, plant and equipment have been assessed as
follows:
Item Depreciation method
Average useful life
Furniture and fixtures Straight line 4-16 years
Motor vehicles Straight line 5 years
Office equipment Straight line 4-16 years
Computer equipment Straight line 3 -9 years
Computer software Straight line 2-9 years
Residual valuesResidual values of other assets are determined by
considering the second hand values of similar items which
are already at the age the asset is expected to be at the
end of its useful life. This would be applicable especially to
vehicles.
CETA reviews the residual values on an annual basis. The
review revealed that the residual values used in the current
or prior periods were still valid. No significant variances were
identified.
De-recognitionThe carrying amount of an item of property, plant and
equipment shall be derecognised on disposal (including
disposal through a non-exchange transaction) or when no
future economic benefits or service potential are expected
from its use or disposal. The gain or loss arising from de-
recognition of an item of property, plant and equipment
shall be included in surplus or deficit when the item is
derecognised.
6. Intangible assetsAn intangible asset is an identifiable non-monetary asset
without physical substance. An asset is identifiable if it
either separable, i.e. is capable of being separated or
divided from an entity and sold, transferred, licensed,
rented or exchanged, either individually or together with a
related contract, identifiable assets or liability, regardless of
whether the entity intends to do so or arises from binding
arrangements (including rights from contracts), regardless
of whether those rights are transferable or separable from
the CETA or from other rights and obligations.
RecognitionThe recognition of an item as an intangible asset requires an
entity to demonstrate that the item meets the definition of an
intangible asset and the recognition criteria. An intangible
asset is recognised when it is probable that the expected
future economic benefits or service potential that are
attributable to the asset will flow to the CETA; and the cost or
fair value of the asset can be measured reliably.
CETA assesses the probability of expected future economic
benefits or service potential using reasonable and
supportable assumptions that represent management’s best
estimate of the set of economic conditions that will exist over
the useful life of the asset.
Where an intangible asset is acquired through a non-
exchange transaction, its initial cost at the date of acquisition
is measured at its fair value as at that date.
Initial MeasurementAn intangible asset is initially measured at its cost and where
an intangible asset is acquired at no cost or for a nominal
cost, the cost is measured at its fair value as at the acquisition
date. Intangible assets which has a cost price less than R 2
000 are expensed and not capitalised.
Subsequent measurementIntangible assets are carried at cost less any accumulated
amortisation and any impairment losses.
AmortisationThe amortisation period and the amortisation method for
intangible assets are reviewed at each reporting date.
Internally generated goodwill is not recognised as an
intangible asset. Amortisation is provided to write down the
intangible assets, on a straight line basis, to their residual
values. The useful lives are detailed in the note for Property
Plant and Equipment.
DerecognitionIntangible assets are derecognised when no future
economic benefits or service potential are expected from its
use or disposal. The gain or loss is the difference between
the net disposal proceeds, if any, and the carrying amount.
It is recognised in surplus or deficit when the asset is
derecognised.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
79
7. Related partiesMembers of the Accounting Authority and employees are
required to disclose their interest in any contracts that CETA
is entering into with an outside party. Inter-SETA transactions
and balances arise due to the movement of employers from
one SETA to another. Transactions with related parties are
supposed to occur under terms and conditions that are no
less favourable than those available under similar arm’s
length dealings.
8. In-Kind ContributionsIn-Kind contributions are recognised at fair value and are
equally recorded as revenue and expenditure for donated
use of services, facilities and other assets. Donated assets
are recorded as current or fixed assets.
9. Financial instrumentsFinancial instruments are broadly defined as those
contracts that results in a financial asset in one entity and a
financial liability or residual interest in another entity. A key
distinguishing factor between financial assets and financial
liabilities and other assets and liabilities, is that they are
settled in cash or by exchanging financial instruments rather
than through the provision of goods or services.
Financial assets and financial liabilities are initially recognised
at fair value. Where an entity subsequently measures
financial assets and financial liabilities at amortised cost or
cost, transactions costs are included in the cost of the asset
or liability.
Financial assets and financial liabilities that are non-
derivative instruments with fixed or determinable payments,
for example deposits with banks, receivables and payables,
are measured at amortised cost. At initial recognition, an
entity can however designate such an instrument to be
measured at fair value
An entity cannot offset financial assets and financial liabilities
in the statement of financial position unless a legal right of
set-off exists, and the parties intend to settle on a net basis.
GRAP 104 requires extensive disclosures on the significance
of financial instruments for an entity’s statement of financial
position and performance, as well as the nature and extent of
the risks that an entity is exposed to as a result of its financial
instruments. Some disclosures, for example the disclosure
of fair values for instruments measured at amortised cost
or cost and the preparation of a sensitivity analysis, are
encouraged rather than required.
The effective interest method is a method of calculating the
amortised cost of a financial asset or a Financial liability
(or group of financial assets or financial liabilities) and of
allocating the interest income or interest expense over the
relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments or receipts
through the expected life of the financial instrument or, when
appropriate, a shorter period to the net carrying amount of
the financial asset or financial liability. There is a presumption
that the cash flows and the expected life of a group of similar
financial instruments can be estimated reliably. However, in
those rare cases when it is not possible to reliably estimate
the cash flows or the expected life of a financial instrument
(or group of financial instruments), the CETA shall use the
contractual cash flows over the full contractual term of the
financial instrument (or group of financial instruments).
A financial asset is cash, residual interest of another entity,
a contractual right to receive cash or another financial asset
from another entity exchange financial assets or financial
liabilities with another entity under conditions that are
potentially favourable to the CETA.
A financial liability is any liability that is a contractual obligation
to deliver cash or another financial asset to another entity
or exchange financial assets or financial liabilities under
conditions that are potentially unfavourable to the CETA.
ClassificationThe CETA has the following types of financial assets (classes
and category) as reflected on the face of the statement of
financial position or in the notes thereto:
Class Category
Receivables
from non-
exchange
transactions
Financial assets measured at initial
recognition at fair value, and are
subsequently measured at amortised cost
using the effective interest rate method.
Receivables
from
exchange
transactions
Financial assets measured at initial
recognition value, and are subsequently
measured at amortised cost using the
effective interest rate method.
Cash
and cash
equivalents
Financial assets which comprise of cash
on hand and demand deposits, and
other short-term highly liquid investments
that are readily convertible to a known
changes in value.
80
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
The CETA has the following types of financial liabilities
(classes and category) as reflected on the face of the
statement of financial position or in the notes thereto:
Class Category
Provisions Financial liabilities are initially
measured at fair value, and
are subsequently measured at
amortised cost.
Payables from
exchange
transactions
Financial liabilities are initially
measured at fair value, and
are subsequently measured at
amortised cost.
Payables from
non-exchange
transactions
Financial liabilities are initially
measured at fair value, and
are subsequently measured at
amortised cost.
10. OffsettingFinancial assets and financial liabilities are offset if there
is any intention to realise the asset and settle the liability
simultaneously and a legally enforceable right to set off
exists.
11. LeasesLeases of assets under which all the risks and benefits
of ownership are effectively retained by the lessor are
classified as operating leases. Payments made under
operating leases are charged to the statement of financial
performance based on the straight-line method. When an
operating lease is terminated before the lease period has
expired, any payment required to be made to the lessor by
way of penalty is recognised as an expense in the period in
which termination take place. The CETA does not hold any
finance leases.
12. ConsumablesConsumables are recognised as an asset on the date of
acquisition and are measured at the cost on the acquisition
date. Consumables are valued at the lower of cost or net
replacement value. Consumables are recognised as an
asset if it is probable that future economic benefits or service
potential associated with the item will flow to the entity and
they can be measured reliably.
13. ReservesReserves are sub-classified in the Statement of financial
position between the following funds and reserves:
• Administration reserve
• Employer grant reserve
• Discretionary reserve
This sub-classification is made based on the restrictions
placed on the distribution of monies received in accordance
with the Regulations issued in terms of the Skills Development
Act, Act No 97 of 1998 as amended. Member employer
company levy payments are set aside in terms of the Skills
Development Act, Act No 97 of 1998, as amended and the
regulations issued in terms of the Act, for the purpose of:
2019
%
2018
%
Administration costs of the CETA 10.5 10.5
Discretionary Grant 49.5 49.5
Mandatory Grant 20 20
National Skills Fund 20 20
100 100
In addition, contributions received from public service
employers in the national or provincial spheres of government
may be used to pay for CETA administration costs.
Interest and penalties received from South African Revenue
Services as well as interest received on Investments are
utilised for discretionary grants and projects. Other income
received are utilised in accordance with the original source
of the income.
Surplus funds in the administration reserve and unallocated
funds in the employer grant reserve are moved to the
discretionary fund reserve. Reserves are created based on
the accrual basis of accounting.
Contributions from Public Service Split
Administration 1/3
Discretionary Grants 2/3
14. Employee benefits
Defined contribution plansThe CETA provides for retirement benefits for all its
permanent employees through a defined contribution
scheme that is subject to the Pension Funds Act, 1956 as
amended. Contributions are at a rate of 15% of pensionable
emoluments of which members contribute 7.5%. The CETA’s
contribution to the defined contribution plans are charged to
the Statement of Financial Performance in the year to which
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
81
they relate and there is no further liability for the CETA. The
CETA pays for the medical aid of the staff members and
there is no obligation to the CETA over and above medical
aid contributions.
15. Provisions, accruals and contingenciesProvisions are recognised when CETA has a present
obligation as a result of a past event and it is probable that
this will result in an outflow of economic benefits that can be
estimated reliably. Provisions are recognised when the CETA
has a present legal or constructive obligation as a result
of past events, and it is probable that this will result in an
outflow of economic benefits that can be estimated reliably.
Long-term provisions are discounted to net present value.
15.1 Provision for levies exempt companiesExempt companies’ provision includes employers who
continued paying skills development levies even though
they are exempt in terms of Skills Development Act.
15.2 Provision for employee entitlementsThe cost of other employee benefits is recognised during
the period in which the employee renders the related service
employee entitlements are recognised when they accrue to
employees. A provision is made for the estimated liability as
a result of services rendered by employees up to the last
day of the financial year. Leave provision are included under
payables from exchange transactions in the statement of
financial position based on the current salary rates and latest
approved increases. Provision for bonus is also included.
16. Provisions for grants
16.1 MandatoryA provision is recognised for grant payments due once
the specific criteria set out in the regulations to the Skills
Development Act, 97 of 1998, as amended has been
complied with by member companies and it is probable that
the CETA will approve the payment. The measurement of the
obligation involves an estimate, based on the established
pattern of past practice of approval for each type of grant.
16.2 DiscretionaryNo provision is made for projects approved at year-end,
unless the service in terms of the contract has been delivered
or the contract is of an onerous nature. Where a project has
been approved, but has not been accrued for or provided
for, it is disclosed as commitment in the notes to the financial
statements.
17. Contingent assets and contingent liabilitiesA contingent liability is a possible obligation that arises from
past events, and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain
future events not wholly in the control of the entity.
A contingent asset is a possible asset that arises from past
events, and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly in the control of the entity. Contingent
assets and contingent liabilities are not recognised.
18. Borrowing costsBorrowing costs are interest and other expenses incurred
by an entity in connection with the borrowing of funds.
Borrowing costs are recognised as an expense in the period
in which they are incurred.
19. Comparative figuresWhere necessary, comparative figures have been adjusted
to conform to changes in presentation in the current year.
20. Irregular expenditureIrregular expenditure means expenditure incurred in
contravention of, or not in accordance with, a requirement of
any applicable legislation, including:
• The PFMA,
• The Skills Development Act, Act No 97 of 1998 as
amended,
Where irregular expenditure was incurred in the previous
financial year and is only condoned in the following financial
year, the register and the disclosure note to the financial
statements must be updated with the amount condoned.
Irregular expenditure that was incurred and identified during
the current financial year and which was not condoned
by the National Treasury or the relevant authority must be
recorded appropriately in the irregular expenditure register.
If liability for the irregular expenditure can be attributed to a
person, a debt account must be created if such a person is
liable in law.
Immediate steps must thereafter be taken to recover the
amount from the person concerned. If recovery is not
possible, the accounting officer or accounting authority may
write off the amount as debt impairment and disclose such
in the relevant note to the financial statements. The irregular
expenditure register must also be updated accordingly. If
82
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
the irregular expenditure has not been condoned and no
person is liable in law, the expenditure related thereto must
remain against the relevant programme/expenditure item, be
disclosed as such in the note to the financial statements and
updated accordingly in the irregular expenditure register.
All irregular expenditure are charged against income in the
period to which it relates and disclosed in the period it was
first discovered.
21. Fruitless and wasteful expenditureFruitless and wasteful expenditure means expenditure
that was made in vain and would have been avoided had
reasonable care been exercised.
Where fruitless and wasteful expenditure were incurred in
the previous financial year and are only condoned in the
following financial year, the register and the disclosure note
to the financial statements must be updated with the amount
condoned.
Fruitless and wasteful expenditure that were incurred and
identified during the current financial year and which were
not condoned by the National Treasury or the relevant
authority must be recorded appropriately in the fruitless and
wasteful expenditure register. If liability for the fruitless and
wasteful expenditure can be attributed to a person, a debt
account must be created if such a person is liable in law.
Immediate steps must thereafter be taken to recover the
amount from the person concerned. If recovery is not
possible, the accounting officer or accounting authority may
write off the amount as debt impairment and disclose such
in the relevant note to the financial statements. The fruitless
and wasteful expenditure register must also be updated
accordingly. If the fruitless and wasteful expenditure has
not been condoned and no person is liable in law, the
expenditure related thereto must remain against the relevant
programme/expenditure item, be disclosed as such in the
note to the financial statements and updated accordingly in
the fruitless and wasteful expenditure register.
All fruitless and wasteful expenditure is charged against
income in the period to which it relates and disclosed in the
period it was first discovered.
22. TaxationNo provision has been made for taxation, as CETA is exempt
from income tax In terms of Section 10 of the Income Tax Act,
(Act 58 of 1962).
23.Value Added Taxation (VAT)The Revenue Laws Amendment Act, (Act No.45 of 2003)
commenced on 22 December 2003. Previously the definition
of enterprise placed Sectorial Education and Training
Authorities (SETA) in Schedule 3A within the scope of VAT.
The Amendment Act, however has amended this definition
of enterprise and effectively places the public entity outside
the scope of VAT; effective 1 April 2005.
24.Subsequent eventsSubsequent events are all events that occur between the
reporting date and the date on which the financial statements
are authorised for tabling in parliament. Adjusting events are
all the events that confirm the financial performance and
position of the SETA at yearend and if material the financial
statements are adjusted accordingly.
25. ErrorsMaterial prior period errors are corrected retrospectively in
the first set of financial statements authorised for issue after
their discovery by:
• (a) Restating the comparative amounts for the prior
period(s) presented in which the error occurred; or
• (b) If the error occurred before the earliest prior period
presented, restating the opening balances of assets,
liabilities and net assets for the earliest prior period
presented.
26.BudgetThe approved budget covers the fiscal period from 1 April to
31 March of the financial year. The financial statements and
the budget are on the same basis of accounting therefore
a comparison with the budgeted amounts for the reporting
period have been included in the Statement of comparison
of budget and actual amounts. There are no entity or timing
differences on the budget to actual information.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
83
NO
TES
TO T
HE
FIN
ANC
IAL
STAT
EMEN
TS F
OR
TH
E YE
AR E
ND
ED 3
1 M
ARC
H 2
019
Empl
oyer
gran
t D
iscr
etio
nary
1
Allo
catio
n of
una
ppro
pria
ted
surp
lus
2018
20
19
Adm
inis
tratio
n re
serv
e gr
ant r
eser
ve
Tota
l per
To
tal p
er
St
atem
ent o
f St
atem
ent o
f
Fi
nanc
ial
Fina
ncia
l A
dmin
istra
tion
Man
dato
ry
Dis
cret
iona
ry
Pe
rfor
man
ce
Perf
orm
ance
re
serv
e
skill
s gr
ant
gran
ts
R
‘000
R
‘000
R
‘000
R
‘000
R
‘000
Rev
enue
Skill
s de
velo
pmen
t lev
y: in
com
e
Adm
in le
vy in
com
e (1
0.5%
)
7
6,65
5
83,
778
83
,778
-
-
Gra
nt le
vy in
com
e (6
9.5%
)
498
,954
543
,858
-
154,
013
389
,844
Skill
s de
velo
pmen
t lev
y: p
enal
ties
and
inte
rest
2
1,27
4
20,
389
-
-
20,
389
Inte
rest
rece
ived
142
,169
150
,424
-
-
1
50,4
24
In-K
ind
Con
tribu
tions
- Fa
cilit
ies
621
1,3
04
1,3
04
-
-
Oth
er in
com
e
1,0
12
4
8
-
-
48
Tota
l
740
,685
799
,801
85
,082
15
4,01
3
5
60,7
05
Expe
nses
A
dmin
istra
tion
expe
nses
-7
4,23
6
-81,
837
-81,
837
-
-
Empl
oyer
Gra
nt E
xpen
ses
-85,
150
-8
9,32
3
-
-8
9,32
3
-
Dis
cret
iona
ry G
rant
Exp
ense
s
-344
,538
-695
,981
-
-
-6
95,9
81
Tota
l
-503
,924
-867
,141
-81,
837
-8
9,32
3
-6
95,9
81
236
,761
-6
7,34
0
3,2
45
64
,691
-135
,276
84
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019
MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000
2 Levies Levy income: Administration Levies in cash 84,060 76,862
Levies received from SARS 81,739 74,599
Government levies received 2,299 1,925
Inter-seta transfers in 23 338
Levies provision -282 -207
83,778 76,655
Levy income: Employer Grants Levies in cash 154,551 144,120
Levies received from SARS 154,506 143,443
Inter-seta transfers in 45 677
Levies provision -537 935
154,013 145,055
Levy income: Discretionary Grants Levies in cash 391,174 356,042
Levies received from SARS 386,464 350,500
Government levies received 4,598 3,850
Inter-seta transfers in 113 1,692
Levies provision -1,330 -2,143
389,844 353,899 Total 627,636 575,609
3 Fines, Penalties and Forfeits Skills Development Levy: Interest 9,719 9,466
Skills Development Levy: Penalties 10,670 11,808
20,389 21,274
4 Other Income Other income comprises of:
Income from Recoveries by Attorneys - 952
Profit on Write-Off of Asset 48 60
48 1,012
5 Interest received - CPD Corporation for Public Deposits (CPD) 150,424 142,169
150,424 142,169
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
85
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019
MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘0006 Administration Expenses 6.1 Employee cost
Basic Salaries 19,006 13,963
Net Bonuses 4,239 6,094
PAYE 12,377 10,088
UIF 149 135
Pension 4,551 3,506
Medical Aid 3,631 2,957
Bond Subsidy 555 429
Other 1,778 440
46,286 37,614 Defined Contribution Plan The CETA’s contribution to the defined contribution plan are charged to the Statement of Financial Performance in the year
to which they relate and there is no further liability for the CETA.
Fringe Benefits In the new financial year, the CETA introduced new fringe benefits for its employees namely the: mobility allowance,
education allowance and employer pension contribution.
Other
Included in other employee costs are: Garnishee orders, Leave pay, Compensation fund, employee wellness, union fees,
recruitment fees, bursaries etc.
Staff Movement The CETA appointed about 60 interns in the current financial year and salaries of permanent employees were adjusted
irregularly, both resulting in the increase of employment costs.
6.2 Depreciation and amortisation Depreciation 5,015 4,362
Amortisation 270 247
5,285 4,609
6.3 Operating Expenses QCTO 4,240 4,763
Board and Board Committees 4,572 2,442
Travel, Subsistence and Accommodation 668 645
Communication, PR and Marketing 3,037 7,910
Audit Related Costs 3,458 3,034
Consulting and Outsourcing 6 316
Cost of Occupancy 4,205 3,782
Legal Costs 1,859 3,326
In-Kind Contributions - Facilities 21 1,304 621
Other Operational Expenses 6,918 5,174
30,266 32,013
86
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
6.3 Operating Expenses (cont....)Other
Included in other operation expenses are: Repairs & Maintenance, Small Assets, Cleaning, Stationery, Security, Insurance,
Refreshments, printing, Archiving expenses etc. These expenditures increased in the current financial year due to the
increase in staff complement.
Total 81,837 74,236
7 Employer Grant and Project Expenses Mandatory Grants 89,323 85,150
- Expensed 89,426 80,039
- Movement in provision -103 5,111
Discretionary Grants 695,981 344,538
- Core expenditure 560,069 229,005
- Admin expenditure 135,913 115,533
- Employee cost 69,781 54,222
- Project Administration costs 66,132 61,311
785,304 429,688 8 Cash and Cash equivalents Cash on hand 2 2
Bank balance - Standard Bank 81,282 275,115
Bank balance - Corporation for Public Deposits 2,168,169 2,017,744
2,249,453 2,292,861 9 Receivables 9.1 Receivables from non-exchange transactions
SARS Employer receivables - current year 20 14
SARS Employer receivables - prior years 8,208 7,996
Provision for bad debts -7,170 -1,992
Project debtors - 3,004
1,058 9,022
In the current financial year, management performed a review on movements in receivables resulting from SARS
adjustments, in line with CETA policy and section 190(1)(b) of the Tax Administration Act. Most of the debtors older than five
years, had not movement in the current financial year, this resulted in the increased provision for bad debts.
9.2 Receivables from exchange transactions 9.2.1 Sundry debtors 260 546
Bad debts - -96
260 450
9.2.2 Staff debtors 88 255
9.2.3 Prepaid expenses 35 6
Total Receivables from exchange transactions 382 711
Debtors relate to cases successfully concluded in favour of the CETA in the prior year and other opening balances, have
been written-off due to a reassessment of their recoverability.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
87
10 Consumables Opening balance 1,340 296
Movement 11,142 1,044
Closing balance 12,482 1,340
Included in consumables for prior year, is the restated amount relating to a prior year error. The detail of the error is in note
18.a.
The consumables balance has increased significantly due to promotional material purchased during the year, that was not
fully distributed by the end of the year.
88
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEARN
OTE
S TO
TH
E FI
NAN
CIA
L ST
ATEM
ENTS
FO
R T
HE
YEAR
EN
DED
31
MAR
CH
201
9
11
Prop
erty,
Pla
nt a
nd E
quip
men
t
20
19
2018
Acc
umul
ated
A
ccum
ulat
ed
depr
ecia
tion
depr
ecia
tion
and
Car
ryin
g
and
Car
ryin
g
C
ost
impa
irmen
t am
ount
C
ost
impa
irmen
t am
ount
Furn
iture
and
fitti
ngs
4,2
05
-2
,824
1,
382
3,82
6
-1,
998
1,8
28
Mot
or v
ehic
les
9,6
77
-4
,933
4,
744
5,40
1
-3,
567
1,8
34
Offi
ce e
quip
men
t
4
,728
-3,3
53
1,37
5
3,
865
-
2,61
6
1
,249
Com
pute
r equ
ipm
ent
8,8
59
-5
,797
3,
062
7,05
0
-3,
827
3,2
23
Tota
l
27,
469
-1
6,90
6
10
,563
2
0,14
2
-12,
008
8,1
34
Rec
onci
liatio
n of
Pro
perty
, Pla
nt a
nd E
quip
men
t - 2
019
Ope
ning
bal
ance
A
dditi
ons
Dis
posa
ls
Writ
e-of
f D
epre
ciat
ion
Tota
l
Furn
iture
and
fitti
ngs
1
,828
379
0
-
-82
5
1
,382
Mot
or v
ehic
les
1
,834
4,
276
-0
-
-
1,36
6
4
,744
Offi
ce e
quip
men
t
1,2
49
90
1
0
-
16
-759
1,3
75
Com
pute
r equ
ipm
ent
3
,223
1,
978
0
-74
-2,0
65
3
,062
Tota
l
8,1
34
7,53
4
0
-
91
-5
,015
1
0,56
3
Rec
onci
liatio
n of
Pro
perty
, Pla
nt a
nd E
quip
men
t - 2
018
O
peni
ng b
alan
ce
Add
ition
s D
ispo
sals
W
rite-
off
Dep
reci
atio
n To
tal
Furn
iture
and
fitti
ngs
2
,546
119
-
0
-
838
1,8
28
Mot
or v
ehic
les
2
,914
-
-
0
-1,
080
1,8
34
Offi
ce e
quip
men
t
1,8
96
16
2
-
-
13
-795
1,2
49
Com
pute
r equ
ipm
ent
2
,499
2,
420
-
-46
-1,6
49
3
,223
Tota
l
9,8
55
2,70
1
-
-
59
-4
,362
8,1
34
Due
to th
e in
crea
se in
sta
ff co
mpl
imen
t in
the
curr
ent f
inan
cial
yea
r, m
anag
emen
t dec
ided
to u
tiliz
e la
ptop
s th
at w
ere
inte
nded
for S
MM
E su
ppor
t .Th
e la
ptop
s w
ere
boug
ht in
the
prev
ious
fina
ncia
l yea
r (se
e no
te 1
8.a)
. The
lapt
ops
are
incl
uded
in a
dditi
ons
for c
ompu
ter e
quip
men
t. A
fter e
valu
atin
g th
e m
ater
ialit
y, m
anag
emen
t
conc
lude
d th
at th
e la
ptop
s sh
ould
be
acco
unte
d fo
r at c
ost,
less
dep
reci
atio
n.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
89
12 In
tang
ible
Ass
ets
2019
20
18
Acc
umul
ated
A
ccum
ulat
ed
amor
tisat
ion
amor
tisat
ion
and
Car
ryin
g
and
Car
ryin
g
C
ost
impa
irmen
t am
ount
C
ost
impa
irmen
t am
ount
Com
pute
r sof
twar
e
2
,271
-2,0
74
19
8
2,
175
-
1,80
4
371
Tota
l
2
,271
-2,0
74
19
8
2,
175
-
1,80
4
371
Rec
onci
liatio
n of
Inta
ngib
le A
sset
s - 2
019
Ope
ning
bal
ance
A
dditi
ons
Am
ortiz
atio
n To
tal
Com
pute
r sof
twar
e
37
1
96
-27
0
198
Tota
l
371
96
-
270
1
98
Rec
onci
liatio
n of
Inta
ngib
le A
sset
s - 2
018
Ope
ning
bal
ance
A
dditi
ons
Am
ortiz
atio
n To
tal
Com
pute
r sof
twar
e
1
51
468
-24
7
371
Tota
l
151
4
68
-
247
37
1
Rem
aini
ng a
vera
ge u
sefu
l liv
es:
Ye
ars
Furn
iture
and
fitti
ngs
1
Mot
or v
ehic
les
3
Offi
ce e
quip
men
t
2
Com
pute
r equ
ipm
ent
1
Com
pute
r sof
twar
e
1
The
usef
ul li
fe o
f ass
ets
with
a v
alue
of o
ne ra
nd h
ave
been
take
n in
to c
onsi
dera
tion
in th
e re
mai
ning
use
ful l
ives
.
90
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘00013 Payables 13.1Payables from non-exchange transactions Levy creditors 21,107 14,952
SARS payables 1,167 180
Skills development mandatory grants 6,411 6,749
Trade payables - Projects 16,846 19,968
NSF Lay-off scheme 37 37
Accrued expenses - Projects 80,832 26,849
126,401 68,735
13.2 Payables from exchange transactions Trade payables - Administration 4,026 6,267
Accrued expenses - Administration 618 1,612
Lease liability 357 562
Leave Pay 19 2,677 1,904
Other creditors 1,186 1,120
8,865 11,466
The increase in levy creditors was due to construction companies submitting Work Skills Programmes (WSPs) for the first
time, who did not have banking details.
The significant increase in project accruals, was due to the increased efficiency of the project implementation and invoicing
units, which resulted in high submissions of invoices at year end.
14 Government Grants 14.1 NARYSEC Funds
Opening balance 725 -
Amount received/receivable - 1,001
Amount paid/payable -725 -277
- 725
National Rural Youth Service Corps (NARYSEC) Funds is made up of external funds received for the payment of RPL
programmes falling within the CETA’s scope.
14.2 UIF Funds
The Unemployment Insurance Fund (UIF) a commitment amount of R 71 595 000.00 for the periods up to 31 March 2020.
The funds are aimed at funding training programmes falling within and outside the CETA’s scope. The amount will be
recognized as income once prescribed conditions of the government grant are met.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
91
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019
MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000 15 Provisions 15.1 Employer refund Opening balance 20,176 18,761
transfers to discretionary grants -3,600 -3,437
Current year 4,325 3,842
Change in provision 1,425 1,010
Closing balance 22,326 20,176
The provision for employer refund R22 326’ (2017/18: R20 176’) relates to levies incorrectly contributed by employers. Paid
by SARS/DHET to the CETA despite being exempted from contributing the Skills Development Levy due to a legislation
which came into effect on 1 August 2005. There has since been a Skills Development Circular no.09/2013 which states that
SETAs should provide for no longer than five years as stipulated in terms of section 190(4) of the Tax Administration Act.
15.2 Other Mandatory Grant provisions Opening balance 7,958 3,166
Change in provision -5,712 4,792
Closing balance 2,246 7,958
15.3 Administration provisions Opening balance 2,607 707
Change in provision -1,934 1,900
Closing balance 673 2,607
The decrease in administration provisions, was due to the rapid settlements of invoices raised.
15.4 Discretionary grants provisions Opening balance 64,503 67,237
Utilised -18,877 -19,011
Change in provision 229 16,277
Closing balance 45,855 64,503
Total 71,099 95,244
92
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000
16 Cash generated from operations Surplus/(Deficit) -67,340 236,761
Adjusted for: Depreciation and amortisation 5,285 4,609
Profit on write-off of asset 27 48
Adjustment to Opening Balances -1,159 4,057
Changes in working capital: Consumables -11,142 -1,044
Receivables from exchange transactions 329 1,981
Receivables from non-exchange transactions 7,963 -2,589
Movement in provisions -24,145 5,749
NARYSEC Funds -725 725
Payables from exchange transactions -2,601 -29,221
Payables from non-exchange transactions 57,666 49,738
-35,841 270,813
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
93
NO
TES
TO T
HE
FIN
ANC
IAL
STAT
EMEN
TS F
OR
TH
E YE
AR E
ND
ED 3
1 M
ARC
H 2
019
17 C
omm
itmen
ts
17
.1 D
iscr
etio
nary
Gra
nts
Res
tate
d
Appr
oved
Bala
nce
Af
ter
2018
/19
N
OTE
31
/03/
2018
31
/03/
2018
Ad
just
men
ts
Allo
catio
ns
Util
ized
Ba
lanc
e c/
fwd
Prog
ram
mes
R ‘0
00
R
‘000
R
‘000
R
‘000
R
‘000
Aca
dem
ic D
evel
opm
ent:
Jnr L
ectu
rers
2
,000
-
-
-
-
833
1,
167
Aca
dem
ic In
frast
ruct
ure
and
lect
ure
supp
ort
25,6
80
-
-
-
-
2
5,68
0
App
rent
ices
hips
520
,793
3
,575
9
4,07
6
294
,635
-18
8,11
6
724
,963
Ass
ocia
te le
ctur
er p
ositi
ons
(Tra
nspo
rt p
lann
ing/
GIS
/CA
D fo
r pla
nnin
g)
46,3
24
-
-
-
-51
8
4
5,80
6
Bur
sarie
s
125
,369
4
,400
2
0,33
2
222
,720
-
65,3
48
307
,473
Can
dida
cy
1
54,9
89
2,5
00
5,
592
64,9
00
-5
,553
2
22,4
29
CET
A A
cade
my
1
50,0
00
-
-
-
-98
7
149
,013
Con
tem
pora
ry L
eade
rs d
evel
opm
ent
581
-
-
-
-
203
378
Dev
elop
men
t Of A
cade
mic
Pro
gram
me
747
-
-
-
-
747
DQ
P St
atus
3
,874
-
-
-
-
3,
874
Engi
neer
ing
Art
icul
atio
n R
esea
rch
and
Part
ners
14
,101
-
-
-
-
14,
101
Entre
pren
eurs
hip
And
Men
tors
hip
720
-
-7
20
-
-
-
Equi
ty D
evel
opm
ent P
ost
2,5
90
-
1
,920
-
-1,5
56
2,95
4
Est
ablis
hmen
t And
Dev
elop
men
t Of C
oope
rativ
es
12
,724
-
-
-
-
740
11,
984
Esta
blis
hmen
t of a
Con
stru
ctio
n La
bora
tory
and
Wor
ksho
p
8,9
20
-
-
-
-
8,92
0
Esta
blis
hmen
t of a
coo
pera
tive
500
-
-
-
-
500
Esta
blis
hmen
t or E
nhan
cem
ent o
f Con
stru
ctio
n D
epar
tmen
ts
in P
ublic
FET
Col
lege
s
2,9
67
-
-
-
-
2,96
7
Futu
re le
ader
s
1
,882
-
-
-
-1,1
05
7
76
Inno
vatio
n
4
,019
-
-
-
-
4,
019
Inte
rnsh
ips
89,7
19
4,3
00
41,
648
54,5
50
-26
,683
1
63,5
35
Join
t Pro
ject
s (J
PMT)
4
,704
-
-
-
-
411
4,
292
Lear
ners
hips
607
,899
3
,500
3
1,41
9
255
,300
-18
4,51
3
713
,604
New
Lea
ders
Dev
elop
men
t
2
,030
-
-
-
-
418
1,
612
94
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
R
esta
ted
Ap
prov
ed
Ba
lanc
e
Afte
r
20
18/1
9
NO
TE
31/0
3/20
18
31/0
3/20
18
Adju
stm
ents
Al
loca
tions
U
tiliz
ed
Bala
nce
c/fw
dPr
ogra
mm
es
R
‘000
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00O
ccup
atio
nal H
ealth
and
Saf
ety
14,0
51
-
-
-
-1
,760
12,
290
Plac
emen
t of l
earn
ers
in w
orkp
lace
s
38
,754
-
-1
00
27
,950
-4,6
40
6
1,96
5
Post
-Sch
ool S
ecto
r Col
labo
ratio
n
1
,870
-
-
-
-
1,
870
Prog
ram
me
Dev
elop
men
t
12
9
-
-
-
-
1
29
Proj
ect M
anag
emen
t and
Adm
inis
tratio
n
6
,369
-
-
-
-
6,
369
Rec
ogni
tion
Of P
rior L
earn
ing
15,5
39
1
40
4,
624
23,6
43
-1
,255
42,
691
Rur
al C
omm
unity
dev
elop
men
t pro
ject
11
,360
-
-
-
-2,1
46
9,21
4
Sect
or S
kills
Pla
n
12
,068
-
-
-
-8,9
12
3,15
6
Shor
t Ski
lls P
rogr
amm
es
1
37,9
97
9
00
18,
405
32,2
50
-52
,339
1
37,2
13
Skill
s D
evel
opm
ent C
entre
259
,455
-
-
-
-3,2
96
256
,159
Spec
ial P
roje
cts
6,2
62
-
-
-
-3
,996
2,
265
Trad
e Te
stin
g
5
,511
-
-7
04
-
-16
8
4,64
0
Trai
ning
of F
ET c
olle
ge s
taff
in a
sses
smen
t and
mod
erat
ion
300
-
-
-
-
300
Vario
us P
roje
cts
30
4
-
-
-
-
3
04
Wor
k R
eadi
ness
Cam
paig
n
1
,770
-
-
-
-
1,
770
Wor
kpla
ce In
terg
rate
d le
arni
ng
76,6
84
5
50
-9,4
50
-
-4
,573
63,
211
Tota
l Dis
cret
iona
ry G
rant
Cor
e Ex
pend
iture
2,
371,
557
19,
865
207
,041
9
75,9
48
-
560,
069
3,0
14,3
42
Offe
r let
ters
issu
ed a
nd n
ot a
ccep
ted
by e
ntiti
es a
s at
31
Mar
ch 2
019:
Prog
ram
mes
Tota
l
R ‘0
00
Bur
sarie
s
56
0
TVET
Pla
cem
ent
3,5
00
4
,060
17.2
Ope
ratin
g le
ases
Tota
l of m
inim
um le
ase
paym
ents
und
er n
on c
ance
llabl
e le
ases
- w
ithin
one
yea
r
2,9
50
2,
628
- w
ithin
two
year
s
- 2,
838
2,9
50
5,
466
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
95
The operating lease commitments have been straight lined over the period of the lease to take into account any escalation
clauses contained therein. The operating lease relates to business premises used for office accommodation for the Head
Office, KZN and Western Cape provinces.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019
MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000
17.3 Administration Commitments
Company Name Business Connexion - 124
Busicor South Africa 535 -
Casper Combrink Elecronics T/A Security Integrated Systems 156 312
Clefele Holdings - 16
Cornastone Enterprise Systems (Pty)Ltd 2,836 1,464
Data Proof Communications 1,636 -
EOH Mthombo - 275
Fidelity Security Services 1,707 42
First Hope Group of Companies - 21
Galix Networking (Pty) Ltd 235 451
Graysonreed Consulting (Pty) Ltd 24,900 -
Jasco Power 26 58
JOS South African - 5
Konica Minolta South Africa - 1,074
Kunene Makopo Risk Solutions (Pty) Ltd 576 895
Macman’s Inteligent Systems - 236
Matlama Trading & Projects - 46
Mosebo Networks 4,796 -
Ntumba & Associates Consulting 2,150 2,736
Prosperosa 360 (Pty) Ltd 171 342
Servest (Pty) Ltd 64 129
Servest Interior Solutions 61 122
Singa Tel (Pty)Ltd T/A Net 15 2,773 -
SoluGrowth (Pty) Ltd (Deloitte & Touche) 4,541 633
Thabitech - 221
Vuvuzela Hotline (Pty) Ltd 52 101
Xon Systems - 295
47,213 5,023Commitments with secured rates, that are used as and when services are needed, these commitments are capped
according to appointment letter. The capping varies from R500,000.00 to R45,000,000.00. The list is as follows:
Adams & Adams As per quoted rates
AE Soft (Pty) Ltd As per quoted rates
Arekgone Trading As per quoted rates
Asikhuthale Trading Enterprise As per quoted rates
96
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000Avis Car Rental As per quoted rates
Bidvest Car Rental As per quoted rates
BLN Holding As per quoted rates
Buildup Properties & Projects As per quoted rates
Ctrack Mzansi (Pty) Ltd As per quoted rates
Docufile/ Iron Mountain As per RFQ rates
Falahmetrix Solutions As per quoted rates
Finware Enterprise System As per quoted rates
Five Star Communications As per quoted rates
Global Software & IT Specialist As per quoted rates
Hertz Rent a Car As per quoted rates
Intergrumentery Holding As per quoted rates
Joli-Luv Foodnet and Funfare Park As per quoted rates
Khano Consulting Services As per quoted rates
Lavan Services As per quoted rates
Mabza Consulting As per quoted rates
Mbowane Attorneys As per quoted rates
Mohauict Projects As per quoted rates
Ndumiso Voyi Inc As per quoted rates
NEO Technologies As per quoted rates
Sim And Bontsi As per quoted rates
Vodacom As per quoted rates
Werksmans Attorneys As per quoted rates
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
97
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000
18 Prior year errors
During the current financial year, the entity reviewed prior period transactions. The review resulted in adjustments
relating to the 2017/18 financial year, which affected a number of general ledger accounts. The prior period was
adjusted retrospectively. The impact of the correction of the error(s) can be summarised as follows:
a Impact on account balances:
Decrease in Establishment & Support of SMMES Expenditure 7 - -955
Increase in Inventory (Consumables) 10 - 955
Increase in Discretionary Grant Commitments 17.1 - 955
During the current financial year, the CETA Identified expensed items that should have been recorded as inventory at
the 31 March 2018 year-end. The correction related to the inventory resulted in a prior year error.
b Impact on account balances:
Increase in Discretionary Grant Commitments - Allocations 17.1 - 54,248
During the current financial year, the CETA identified Discretionary Grant offer letters that were received after 31 March
2018, but signed before 31 March 2018 by entity. Therefore, the commitment needs to be reported in the correct
period.
c Impact on account balances:
Increase in In-Kind Contributions - Facilities (Income) 21 - -621
Increase in In-Kind Contributions - Facilities (Expense) 21 - 621
During the current financial year, the CETA management in consultation with the audit committee concluded that all
benefits relating to related parties need to be disclosed as per note 21. This disclosure will therefore affect the prior
year.
d Impact on account balances:
Decrease in Receivables from exchange transactions 9 - -3,004
Increase Receivables from non-exchange transactions 9 - 3,004
Increase Payables from non-exchange transactions 13 -97,715 -46,854
Decrease in Payables from exchange transactions 13 97,715 46,854
During the finalization of the financial statements, the Auditor General gave an opinion on the classifications of
exchange and non-exchange transactions. The CETA adjusted its receivables and payables accordingly.
98
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000
19 Reclassification
a During the current financial year, the CETA Identified a commitment that was previously added under Skills
Development Centres. The intention is to disclose the commitment separately under the CETA Academy.
Impact on account balances:
Decrease Skills Development Centre 17.1 - -150,000
Increase CETA Academy 17.1 - 150,000
b During the current financial year, the CETA management identified that annual leave was accounted for as a provision in
accordance with GRAP 19. After careful assessment, management concluded that leave pay needed to be reclassified
as an accrual.
Impact on account balances:
Decrease in Provisions 13.2 - 1,904
Increase Payables from exchange transactions 13.2 - -1,904
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
99
20 Related Parties
Transactions with entities under common control
By virtue of the CETA being a National Public Entity related to entities and departments in the National sphere of
government, it is considered related to, DHET, National Skills Authority, QCTO, UIF, TVET Colleges, other Government
Departments, other Seta’s and National Skills Fund. The transactions are consistent with normal operating relationships
between the entities, and are undertaken on terms and conditions that are normal for such transactions. Where there
were transactions and balances arising due to the movement of funds between entities under common control of the
department, these amounts are disclosed as below.
2019 2018
R ‘000 R ‘000 Transaction Amount Transaction Amount
Amount receivable/ Amount receivable/
received/ (paid) (payables) received/ (paid) (payables)
DHET 643,096 - 589,816 -
MERSETA 182 - 2,708
-
Department of Transport: KZN 4,564 - 4,493 -
Department of Public Works: Gauteng 518 - 486 -
Department of Roads: Gauteng 360 - 380 -
Department of Public Works: KZN 488 - 415 -
Department of Roads and transport: NCP 966 - - -
QCTO -4,240 - -4,763 -
Provincial Disaster Management Centre - 89 - -
SSETA - 146 - 169
Northwest - 97 - 89
Motheo TVET College - 651 - 58
False Bay TVET College - 60 - 57
Seda Incubator - 145 - 138
Midlands TVET College - 81 - 78
Tshwane South TVET College - 34 - 32
645,935 1,304 593,536 621
The transaction from MERSETA relates to Inter SETA transfers. The amount of the transaction includes interest and
penalties (where applicable) transferred to or from the CETA.
The Departments of Transport, Road and Public Works contributed public sector levies to the CETA.
Emanating from the collaboration between the Services and Construction SETAs, the SETAs share joint projects and
resources such as office space, assets, bursaries etc.
Following the Minister’s request for SETAs to have offices in TVET Colleges, the CETA’s provincial offices are located in
TVET Colleges. In most colleges, the CETA does not pay rent for the granted office space.
100
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
REMUNERATION TO KEY MANAGEMENT AND ACCOUNTING AUTHORITY DISCLOSURE FOR THE YEAR ENDED 31 MARCH 2019
CETA-SALARIES
Paid to Key Management
The key management personnel (as defined by Related Party Disclosures) of the CETA are: the members of the
accounting authority and the members of senior management.
Total Cost Acting
to Company Allowance Lumpsum Bonus Total
R ‘000 R ‘000 R ‘000 R ‘000 R ‘000
Executive Management 10,109 654 100 2,327 13,191 Total number 6
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
101
CET
A-M
EETI
NG
ALL
OW
AN
CES
Paid
/Pay
able
to B
oard
Mem
bers
The
acco
untin
g au
thor
ity c
onsi
sts
of m
embe
rs a
ppoi
nted
in te
rms
of it
s co
nstit
utio
n. T
he c
hief
exe
cutiv
e of
ficer
atte
nds
mee
tings
of t
he a
ccou
ntin
g au
thor
ity b
ut is
not
a
mem
ber o
f the
acc
ount
ing
auth
ority
.
C
ore
Gov
erna
nce
&
O
ther
Ac
coun
ting
Ex
ecut
ive
Bu
sine
ss
Audi
t Fi
nanc
e
Stra
tegy
R
emun
erat
ion
M
eetin
g
Tota
l Fu
el &
G
rand
Mem
ber N
ames
Au
thor
ity
Com
mitt
ee
Com
mitt
ee
Com
mitt
ee C
omm
ittee
C
omm
ittee
C
omm
ittee
Al
low
ance
M
eetin
gs
Oth
er
Tota
l
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00
R ‘0
00
Mr R
Cel
e
227
11
1
-
-
-
-
11
142
49
0
- 49
0
Mr W
Mfe
be
16
7
67
41
-
-
-
-
94
368
3
37
2
Mr R
Mni
si
12
6
-
16
-
-
47
-
18
206
1
20
7
Mr T
C M
adik
ane
15
3
-
23
-
-
-
78
26
280
5
28
5
Ms
R G
oven
der
13
7
-
31
16
-
73
-
61
318
4
32
2
Mr T
Mat
osa
14
5
74
23
0
52
-
-
87
382
17
39
9
Ms
I Ndl
ovu
14
9
82
23
0
-
-
105
82
44
1
16
457
Mr J
Mon
tiset
se
5
6
8
8
16
-
-
62
10
159
-
15
9
Mr S
Mla
ngen
i
154
8
23
-
39
47
-
40
310
5
31
6
Mr Z
Fih
lani
(Apr
18
to J
ul 1
8)
-
-
-
5
-
-
-
-
5
-
5
Mr R
anko
e (A
pr 1
8 to
Jul
18)
-
-
-
10
-
-
-
-
10
-
10
Ms
J M
ogad
ime
(Apr
18
to J
ul 1
8)
1
-
-
17
-
-
-
-
18
- 18
Mr A
Mah
lalu
tye
(Aug
18
to M
ar 1
9)
-
-
-
10
-
-
-
4
15
- 15
Ms
S H
ari (
Oct
18
to M
ar 1
9)
-
-
-
30
-
-
-
4
35
- 35
Mr V
Non
dabu
la (O
ct 1
8 to
Mar
19)
4
-
-
16
-
-
-
-
20
-
20
Mr Z
Mur
haw
i
-
-
-
-
-
-
-
60
60
1
61
1,3
19
350
18
7
121
91
16
7
256
62
8
3,11
9
53
3,17
2
102
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘000 21 In-Kind Contributions - Facilities The CETA has saved costs due to the relations as per above note, the calculation of estimated amounts that the CETA
would have had to pay in the absence of the related party is presented below. The amounts would have been as follows:
a Cost of Occupancy
Provincial Office
Mpumalanga 89 28
KZN 121 115
North West 97 89
Free State 651 58
Western Cape 60 57
Northern Cape 145 138
Eastern Cape 81 78
Gauteng 34 32
1,279 596
The CETA Limpopo provincial office is not included above as it currently pays for occupancy costs. Mpumalanga and the
Free State provinces moved to bigger office space in the current year.
b Equipment (Generator)
Head Office 25 25
The Generator was bought in June 2011 and was fully depreciated by June 2016. The costs for the transportation,
installation and maintenance are incurred by the CETA.
Total 1,304 621
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
103
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 MARCH RESTATED NOTE 2018/19 MARCH 2017/18 R ‘000 R ‘00022 Irregular Expenditure The incurred irregular expenditure related to:
An unauthorised adjustment to employment costs. This is currently a legal matter between the CETA and its employees.
The CETA board resolution indicated action to be taken in a form of consequence management and to recover the irregular
expenditure. The recovery has been done through an application for a declaratory order.
A revised budget was not submitted to the executive authority through the accounting authority of the CETA, when it became
known to the CETA that discretionary grant budget would be exceeded.
An irregularity on mandatory submissions from a successful bidder of a tender.
Opening balance - -
Add: Irregular Expenditure 79,429 -
Less: Amount condoned - -
79,429 - 23 Fruitless and Wasteful Expenditure There were no fruitless and wasteful expenditure incurred during the financial year.
24 Financial Instruments
In the course of CETA operations, it is exposed to interest rate, credit, liquidity and market risk. CETA has developed
a comprehensive risk strategy in terms of Treasury Regulation 28.1 in order to monitor and control these risks. The risk
management process relating to each of these risks is discussed under the headings below.
Financial instruments have not been discounted as they will all be settled or recovered within 6 months. The effect of
discounting was considered and found not to be material.
Interest rate risk CETA manages its interest rate risk by effectively investing CETA surplus the Corporation for Public Deposits (CPD) as per
Treasury Regulation 31.3.3.
Credit risk Floating rate Non-interest bearing2019 Weighted average period Effective until maturityAssets Amount interest rate Amount in years Total R ‘000 R ‘000 R ‘000
Cash and cash equivalents - Standard Bank 81,282 - 81,282
Cash and cash equivalents -
Corporation for Public Deposits 2,168,169 7.06% - 2,168,169
Receivables from non-exchange transactions - 1,058 1,058
Receivables from exchange transactions - 382 382
Total financial assets 2,249,451 1,441 2,250,892
104
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
2018 Weighted average period Effective until maturityAssets Amount interest rate Amount in years Total R ‘000 R ‘000 R ‘000
Cash and cash equivalents - Standard Bank 275,115 - 275,115
Cash and cash equivalents -
Corporation for Public Deposits 2,017,744 7.26% - 2,017,744
Receivables from non-exchange transactions - 9,022 9,022
Receivables from exchange transactions - 711 711
Total financial assets 2,292,859 9,733 2,302,592
Financial assets, which potentially subject CETA to the risk of non-performance by counter parties and thereby subject to
credit concentrations of credit risk, consist mainly of cash and cash equivalents, investments and accounts receivable.
CETA limits its treasury counter-party exposure by only dealing with well-established financial institutions approved by
National Treasury through the approval of their investment policy in terms of Treasury Regulation 28. CETA’s exposure is
continuous.
Credit risk with respect to levy paying employers is limited due to the nature of the income received. CETA does not
have any material exposure to any individual or counter-party. CETA’s concentration of credit risk is limited to the industry
(Construction related industries) in which CETA operates. No events occurred in the industry (Construction and related)
during the financial year that may have an impact on the accounts receivable that has not been adequately provided for.
Accounts receivable are presented net of allowance for doubtful debts.
Liquidity risk
CETA manages liquidity risk through proper management of working capital, capital expenditure (and actual versus
forecasted cash flows and its cash management). Adequate reserves and liquid resources are maintained.
Contractual
Carrying Cash 6 months
2019 Amount Flows or less
Payables from non-exchange transactions 126,401 126,401 126,401
Payables from exchange transactions 8,865 8,865 8,865
135,266 Contractual
Carrying Cash 6 months
2018 Amount Flows or less
Payables from non-exchange transactions 68,735 68,735 68,735
Payables from exchange transactions 11,466 11,466 11,466
80,201
In case of liquidity problems, funding resources might be available in the terms of DHET and National Treasury approval for
borrowing requirements in the open market.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
105
Market risk CETA is exposed to fluctuations in the employment market, for example, sudden increases in unemployment and changes
in the wage rates. No significant events occurred during the year that CETA is aware of.
Fair values CETA’s financial instruments consist mainly of cash and cash equivalents, accounts and other receivables and account and
other payables. No financial instruments were carried at an amount in excess of its fair value. Fair values could be reliably
measured for all financial instruments.
The following methods and assumptions are used to determine the fair value of each class of financial instruments:
Cash and cash equivalent Cash and cash equivalents comprise of cash held by CETA and short-term bank deposits with an original maturity of less
than three months. The carrying amount of these assets approximates their fair values.
Accounts receivable The carrying amount of accounts receivable is net of allowance for any doubtful debt, estimated by the Accounting
Authority based on prior experience. The carrying amount of these assets approximates their fair value. The effect of
discounting was considered and found to be immaterial.
Investments
The fair value of publicly traded investments is based on quoted market prices for those investments.
Accounts payables The carrying amount of account and other payables approximate their fair value due to the relatively short term maturity of
these financial liabilities.
Borrowings
The fair value of interest-bearing borrowings is based on the quoted market price for the same or similar issues or on the
current rates available for debt with the same maturity profile and effective interest rate with similar cash flows (only if
applicable)The effect of discounting was considered and found to be immaterial.
25 New accounting pronouncements At the date of authorisation of these financial statements, there are Standards and Interpretations in issue but not yet
effective. These include the following Standards and Interpretations that are applicable to the CETA and may have an
impact on future financial statements.
106
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Standard Purpose Number Date effective
Related Party Disclosures Disclose relationships that
exist throughout the public
sector
GRAP 20 1 April 2019
Service Concession
Arrangements: Grantor
Prescribe the accounting
and disclosure requirements
GRAP 32 1 April 2019
Separate Financial
Statements
Prescribe the accounting
and disclosure requirements
GRAP 34 Not yet effective
Consolidated Financial
Statements
Prescribe the accounting
and disclosure requirements
GRAP 35 Not yet effective
Investments in Associates
and Joint Ventures
Prescribe the accounting
and disclosure requirements
GRAP 36 Not yet effective
Joint Arrangements Prescribe the accounting
and disclosure requirements
GRAP 37 Not yet effective
Disclosure of Interests in
Other Entities
Disclose information that
enables users to evaluate
GRAP 38 Not yet effective
Statutory Receivables Prescribe the accounting
and disclosure requirements
GRAP 108 1 April 2019
Accounting by Principals
and Agents
Outline principles to be used
for assessment
GRAP 109 1 April 2019
Living and Non-living
Resources
Prescribe the accounting
and disclosure requirements
GRAP 110 Not yet effective
26 Contingencies Contingent Assets
a Litigations Description R ‘000Ms R Malatji Employee related recoveries 22
MAMUHLE Recovery of monies paid to entity 300
Limpopo Chamber of Commerce Recovery of monies paid to entity -
322
The board approved the cancelation of all legal matters relating to recoveries from entities, due to the recovery being
uneconomical.
b SARS Reversal R ‘000
Aveng Africa (Pty) Ltd 165,370
The South African Revenue Services (SARS) reversed the levy that was paid to the CETA in July 2015, leaving the CETA
with the above amounts as a possible recovery from Aveng.
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
107
Contingent Liabilities a Retention of surplus funds R ‘000
In terms of the Grant Regulation 3(11), SETAs are expected to have spent or committed (through actual contractual
obligations) at least 95% of discretionary funds available to use as at 31 March of each year. The possible liability is
calculated as follows:
Discretionary grant reserves 2,056,504
Less: Commitments -3,018,402
Less: Allowable 5% -102,825
-
b SARS Reversal R ‘000
Department of Higher Education and Training 217,557
The South African Revenue Services (SARS) reversed the levy that was paid to the CETA in July 2015, leaving the CETA
with the above amounts as a possible liability owed to the Department’s system.
c Litigations Description R ‘000SAYEP Summons against the CETA claiming payment to entity 60
ABANGUNI Summons against the CETA claiming payment to entity -
ONTIME DESIGNS Summons against the CETA claiming payment to entity 80
MOHOTJI Employee related claims -
MOTHOA Employee related claims -
NDOVELA Employee related claims -
RASHIDA MALATJI Employee related claims -
TAU MALATJI Employee related claims -
140
27 Going concern The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This
basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of
liabilities, contingent obligations and commitments will occur in the ordinary course of business.
28 Events after the reporting period Management is not aware of any matters or circumstances that arose from the end of the date of this reporting financial
year which would require adjustments to or disclosure in the financial statements.
29 Presentation of Budget Information Purpose:
The purpose is to present a comparison of the budget amounts for which the Construction Education and Training Authority
(CETA) is publicly accountable for, against the actual amounts received and spent during the financial year for each level of
legislative oversight.
108
ANNUAL REPORT FOR 2018/2019 FINANCIAL YEAR
Analysis of variances: Revenue
Levy Income is less than the budgeted amount, this is due to lower than anticipated levy income received during the
financial year. Other income such as Interest from CPD assisted the total income for the year to be more than the budgeted
amount.
Employer grant expenses The Employer grant expenditure were lower than the budgeted amount despite the increase in WSP submission, this due to
the lower than anticipated levy income received during the financial year and the reversal of levies by SARS.
Discretionary grant expenses The significant increase in discretionary grant expenditure was due to the increase in capacity of the project
implementation and invoicing units. This increase indicates a positive movement on discretionary grants and the CETA
has started to tap into its discretionary grant reserve. The CETA still implements strict controls and a performance based
payment model.
Administration expenditure Admin expenditure were less than the budgeted amount during the year, the CETA has managed to monitor its spending
closely to ensure that it stays within the 10%, especially since projected levy income was not achieved. The irregular
expenditure in note 22 affected the increase in most administration related line items under notes 6 and 7. Items affected
by the irregular expenditure among others are, the number of board meetings held, legal costs and cost of employment.
The appointment of the interns affected the usage of stationary, printing costs, usage of office supplies etc.
NOTES
Midrand Builders Centre183 Kerk Street (cnr Old Pretoria Main Road) Halfway House
Midrand,1685
978-0-621-47395-7