Presentation to Portfolio Committee on Higher Education

1. Presentation to Portfolio Committee on Higher Education CATHSSETA 2015/2016 – 2019/20 Strategic Plan & 2015/16 Annual Performance Plan

2. Presentation Outline • CATHSSETA Overview; • Strategy Direction; • Budget; • DHET Service Level Agreement; • CATHSSETA Challenges; • Questions and Answers

3. Overview

4. Contextual Background to the 2014/15 • Why CATHSSETA went into Administration? • CATHSSETA has been facing challenges of consistently not meeting its predetermined objectives; • There’s been serious allegations made against some Board members and Senior management; • The Board commissioned Grant Thornton to investigate the allegations and make recommendations • The Board couldn’t act on the findings due to their differences • The Minister instructed the Board to resolve the challenges

5. Contextual Background to the 2013/14 ARP • Why CATHSSETA went into Administration? (continued) • The infighting within the Board affected the performance of the organization wherein the targets were not met on a quarterly basis. • For the FY 2013/14, CATHSSETA received a qualified Audit with matters of emphasis • Due to dysfunctionality, the Minister instructed the DG to put the SETA under administration • An Administrator was appointed on the 16th October to take over as the Accounting Authority for CATHSSETA

6. Achievements In 1st Five Months Of Administration • Administrator’s approach to turning CATHSSETA around; • Conducted an organisation diagnosis and analysis • Action Emanating from diagnosis • Conducted investigations; • Concluded outstanding disciplinary cases; • Reviewed contracts; • Instituted disciplinary action against CEO and CFO; • Development of Strategic Plan and APP; • Revised Strategic Plan and Annual Performance Plan; • Revised high level plan for institution turnaround with inputs from diagnosis report.

7. Achievements In 1st Five Months Of Administration • Other achievements; • Conducted the 2013/14 AGM; • Established interim governance structures Remco and JWC’s; • Changed the window for 1st quarter 2015/16 to be implemented in 4th quarter 2014/15; and • Aligning resources to address immediate performance issues to achieve targets;

8. CATHSSETA Mandate • The purpose of the CATHSSETA is to contribute to the South African Economy through facilitation of skills development in the relevant Sub-Sectors. • The Seta is comprised of the following (6) sub-sectors; • Culture, Arts & heritage • Tourism and Travel services • Hospitality • Sport, Recreation and Fitness • Conservation • Gaming and Lotteries

9. CATHSSETA Mandate cont… • We draw our legal mandate from the following statutes: • South African Constitution • Skills Development Act of 1998; • South African Qualifications Authority Act of 1995; • Education and Training Quality Assurance Bodies Regulation of 1998; • Skills Development Levies Act of 1999; • Learnership Regulations of 2006; • National Qualifications Framework Act of 2008; • Public Finance Management Act • New Grant Regulation effective from 1 April 2013.

10. The size of CATHSSETA: Enterprises registered

11. Vision • A leader in skills development within our diverse sector • Mission • To facilitate skills development through strategic partnerships for CATHSSETA to contribute to economic growth • Values • Service Excellence • Fairness and Transparency • Respect • Accessibility • Integrity • Stakeholder orientation New Vision, Mission & Values

12. Strategic Direction

13. Revision of SP and APP • Review and Rationalization of Strategic Plan programmes by • Reducing programmes from 17 to 4 to improve focus; • Created four programmes viz. Administration; Corporate Governance; Planning; and Skills Development to ensure alignment to National Treasury guidelines;

14. List of CATHSSETA Goals • Goal 1: Improve stakeholder participation in CATHSSETA sector skills development activities; • Goals 2: Develop sector capacity to deliver skills development programmes informed by sector research and business intelligence; • Goal 3: Coordinate delivery of learning interventions. • Goal 4: Improve CATHSSETA competence in delivering to the mandate • Improve CATHSSETA competence in delivering to the mandate

15. Programme 1

16. Five Years Strategic Objectives • In line with the Goals and the revised Budget Programmes – over the next 5 years we intend to:

17. Programme 2

18. Five Years Strategic Objectives

19. Programme 3

20. Five Years Strategic Objectives

21. Programme 4

22. Five Years Strategic Objectives

23. BUDGET

26. Service Level Agreement

27. CATHSSETA-DHET Annual SLA/ APP Targets

28. CATHSSETA-DHET Annual SLA/ APP Targets

29. Challenges

30. Strategic Challenges for CATHSSETA • Significant number of (service) providers in the sector are urban based in spite of rural areas contribution (conservation 63%, gaming and lotteries 27%, hospitality 29%) • Levy income is minimal relative to the actual demand for skills across the sectors; • 90% of CATHSSETA registered enterprises are small and many are exempted from paying skills levy; • The organisation services a large number of smaller enterprises with limited income from few larger enterprises

31. Strategic Challenges for CATHSSETA • Limited income impact negatively on CATHSSETA: • Wide & diverse sector dependent on a variety of occupations (qualifications); • No Provincial footprints; • Poorly managed business contracts; • Inability to match service delivery and financial challenges; • Delivering consistent compliance with governance imperatives;

32. Thank You