Annual Report Moving Forward Theme for this years

Annual Report Moving Forward - Theme for this year’s annual report • Successful STANDISATION played a significant role in improving the results of the core business • And still the organisation remains committed to being a body that looks after the public’s interest QCTO presentation to Portfolio Committee 10 Oct 2013 1

Organisation’s Mandate National Qualifications Framework Act, in essence stipulates the development and management of the Occupational Qualifications Sub-framework Skills Development Act, in essence stipulates: • Design and develop occupational standards and qualifications • Establish and maintain occupational standards and qualifications • Ensure the quality of occupational standards and qualifications • Promote the objectives of the National Qualifications Framework NB: SDA provided for the establishment of QCTO which became operational 1 April 2010, w/ permanent CEO employed 1 April 2012 QCTO presentation to Portfolio Committee 10 Oct 2013 2

2012/2013 Achievements Human Resources • Key Senior Management appointments made resulting in the ability to establish the Management Committee (team that reports directly to the CEO) • Issues surrounding the 12 staff seconded to the QCTO resolved Governance • Qualifications, Assessment and Accreditation and Audit & Risk Committees fully operational, thus all committees of Council established QCTO Presentation to the Portfolio Committee 10 Oct 2013 3

2012/2013 Achievements Core Operations • Standardisation of processes vastly improving operations • Standardised processes documented and communicated to relevant partners • Provider accreditation system in place • Finance • Unqualified Audit QCTO presentation to Portfolio Committee 10 October 2013 4

Predetermined Objectives For programme 1 (administration) key objectives were to establish the QCTO as an independent organisation The organisation in this formative state achieved as follows: • Met all compliance due dates • Financial policy development • Drafted SCM, HR management and ICT plan to act independently of the DHET QCTO presentation to Portfolio Committee 10 October 2013 5

Predetermined Objectives Achievements for Programme 2 (qualifications management) included: • Meeting the target for policy development • Exceeding the target for completion of guidelines for implementing policies • Exceeding the number of applications in the development process • Exceeding the target set for the number of historically registered qualifications managed QCTO presentation to Portfolio Committee 10 October 2013 6

Predetermined Objectives Important areas of under achievement for programme 2 included: • Number of qualifications developed and recommended to SAQA Target 60 Actual 1 • Number of AQP assessment systems evaluated to be valid and reliable Target 15 Actual 10 • Verification and Certification system developed—Not achieved • Number of Foundational Learning Competency learners assessed-Target 20 000 Actual 366 QCTO presentation to Portfolio Committee 10 October 2013 7

2012/2013 Annual Report Challenges • Insufficient Office Space • Full Reliance on the DHET Policies • Majority of Staff Completely New to the Operations • Stakeholders Unaware of the QCTO Role and its work • Concerned About Funding QCTO presentation to Portfolio Committee 10 October 2013 8

2012/2013 Annual Report FINANCIAL RESULTS Statement of Financial Performance 2012/13 R’ 000 2011/12 R’ 000 20, 352 18, 387 837 123 TOTAL REVENUE 21, 189 18, 510 Compensation (9, 184) (5, 279) Other Expenses (6, 651) (5, 445) 5, 354 7, 786 REVENUE State Contributions Finance Income NET SURPLUS FOR THE YEAR QCTO presentation to Portfolio Committee 10 October 2013 9

2012/2013 Annual Report FINANCIAL RESULTS Budget Against Actuals Budget R’ 000 Actuals R’ 000 (Under)/Over Employee Costs 13, 749 9, 184 (4, 565) Goods and Services 13, 060 6, 651 (6, 409) Capital Expenditure 1, 400 756 (644) TOTAL 28, 209 16, 591 (11, 618) CLASSIFICATION QCTO presentation to Portfolio Committee 10 October 2013 10

2012/2013 Annual Report AUDIT OUTCOMES • 2 Years of Unqualified Audit Opinion (sinception) • Findings: ü ü ü Achievement of planned Targets Adjustments to the Annual Performance Information Adjustments to the Annual Financial Statements Irregular Expenditure Standard Policies and Procedures on Performance Information Lack of an accrual accounting systems QCTO presentation to Portfolio Committee 10 October 2013 11

2012/2013 Annual Report AUDIT OUTCOMES # FINDING ROOT CAUSES REMEDIAL ACTIONS 1. 53% Targets not Achieved Capacity Constraints Positions in the approved structure are being filled 2. Material adjustments in the Annual Performance Report Inadequate Quality Assurance processes Due Diligence on reported information enhanced 3. Material Adjustments in Dependence/Reliance Corrected. At the time of the Annual Financial on the Department’s the audit processes were Statements systems already at an advanced stage for QCTO to wean from financial DHET systems QCTO presentation to Portfolio Committee 10 October 2013 12

2012/2013 Annual Report AUDIT OUTCOMES # FINDING ROOT CAUSES REMEDIAL ACTIONS 4. Irregular Expenditure Due to capacity constraints QCTO utilised DHET contract as per provision of TR Corrected. QCTO has own SCM policy and personnel. 6. Standard Operating Policies Capacity Constraints Policy and Procedures on Performance Information being developed 7. Lack of Accrual Accounting System Capacity Constraints Accrual accounting systems is being developed. To be operational as from 1 November 2013 QCTO presentation to Portfolio Committee 10 October 2013 13