MEDIA, INFORMATION AND COMMUNICATION TECHNOLOGIES SECTOR EDUCATION AND TRAINING AUTHORITY (MICT SETA) ANNUAL PERFORMANCE PLAN

Transcription

1 MEDIA, INFORMATION AND COMMUNICATION TECHNOLOGIES SECTOR EDUCATION AND TRAINING AUTHORITY (MICT SETA) ANNUAL PERFORMANCE PLAN

2 FOREWORD The Media, Information and Communication Technologies Sector Education and Training Authority, known as the MICT SETA, was established in terms of the Skills Development Act of 1998 and is responsible for skills development within the Advertising, Film and Electronic Media, Electronics, Information Technology and Telecommunications sub-sectors. These sub-sectors are varied but interconnected and at the forefront of technology. The products and services provided in the sub-sectors are complementary to one another. There are almost 20,000 employers in the sector of which about half are in the information technology sub-sector. About 95% of the employers are small and almost 40% are located in Gauteng. Levy-paying employers within the sector constitute only 21% of all employers in the sector. The MICT sector is spread across the manufacturing and services sectors of the economy. ICT is part of the services sector in that it provides ICT services to all sectors of the economy. It is also part of the manufacturing sector, particularly the manufacture of electronic appliances used for communication purposes. Given the technological intensity of the MICT sector, there is an increasing need for middle to high level skills in the sector. This means that the SETA has to maintain a balance between providing middle and high level learning opportunities and its transformative mandate of improving computer literacy in the country through provision of basic computer skills. This will have a long-term effect of making the South African population ICT literate, providing them with better access to employment opportunities. Working with institutions in rural areas will enable for better access to opportunities for those people who are located in areas that do not currently offer opportunities. The MICT sector has a high percentage of SMMEs that have been identified as the bedrock of development and future creators of employment. Incubation is an integral part of supporting small businesses and enabling them to grow, to be sustainable and to create employment. The MICT SETA endeavours to provide support to these SMMEs, NGOs and trade unions that operate within its sector through targeted programmes that take into account their unique needs.

3 OFFICIAL SIGN-OFF It is hereby certified that this Annual Performance Plan: Was developed by the management of the MICT Sector Education and Training Authority under the guidance of the MICT Board and the Department of Higher Education and Training Was prepared in line with the current Strategic Plan of the MICT SETA Accurately reflects the performance targets which the MICT SETA will endeavour to achieve given the resources made available in the budget for Tumelo Mokoena Signature: Chief Financial Officer Oupa Mopaki Signature: Chief Executive Officer Approved by: Johannes Sipho Mjwara Signature: Chairperson: Accounting Authority

4 CONTENTS PART A: STRATEGIC OVERVIEW UPDATED SITUATIONAL ANALYSIS PERFORMANCE DELIVERY ENVIRONMENT... 3 Demand for services... 3 Nature of challenges to be addressed Organisational Environment REVISIONS TO LEGISLATIVE AND OTHER MANDATES... 7 Constitutional Mandates... 7 Legislative Mandates... 7 The other legislative frameworks include: OVERVIEW OF 2015 TO 2018 BUDGET FOR THE MTEF ESTIMATES Expenditure estimates The budget is detailed from the next page The information used and assumptions made in the preparation of the budget: PART B: PROGRAMME AND SUBPROGRAMME PLANS PART C LINKS TO OTHER PLANS RISK MANAGEMENT... 23

5 PART A: STRATEGIC OVERVIEW 1. UPDATED SITUATIONAL ANALYSIS The MICT sector is made up of five sub-sectors that are varied but interconnected and at the forefront of technology. The products and services provided in the sub-sectors are complementary to one another. The five sub-sectors are Advertising, Film and Electronic Media, Electronics, Information Technology and Telecommunications. The forecast is that (provided there is no general downturn in the economy) the sector is set to enjoy growth across all the five sub-sectors over the next few years. There are a number of drivers of change that will have an impact on the sector. Government programmes are likely to impact the sector s telecommunications, film and electronic media, electronics and Information Technology sub-sectors. The Strategic Infrastructure Project (SIP-15) relating to the television digital migration programme will have to be supported increasingly from a skills development point of view, especially as there will be skills required for operating the back end platforms (electronic media) as well as for the manufacturing of set top boxes (electronics). There are almost 20,000 employers in the sector of which about half are in the information technology sub-sector. About 95% of the employers are small and almost 40% are located in Gauteng. Levy-paying employers within the sector constitute only 21% of all employers in the sector. The MICT SETA is defined according to Government Notice, No ; published in the Government Gazette, dated 11 th November 2010, in terms of the following SIC Codes: The MICT SETA SIC Codes SIC Code Description Manufacture of Alarm Systems Telecommunication Wired Telecommunication Carriers Telegraph Television Broadcasting, Television and Radio Signal Distribution Television and Radio Signal Distribution Cable Networks and Programme Distribution Cable TV Services Telephone Wireless Telecommunication Carriers except Satellite Radiotelephone Television Broadcasting Telecommunications and Wired Telecommunication Carriers Paging Cellular and Other Wireless Telecommunications Satellite Telecommunications Other Telecommunications Security Systems Services except Locksmiths Office Automation, Office Machinery and Equipment Rental Leasing including Installation and Maintenance Software Publishers Prepacked Software Computer Systems Design and Related Services Computer Integrated Design Computer Facilities Management Services Electronic and Precision Equipment Repair and Maintenance Computer Maintenance and Repairs Computer Rental and Leasing Computer Programming Services Other Computer Related Activities Call Center Systems Development and Installations Activities Call Centre and Customer Relationship Management System Development 1

6 SIC Code Description Computer System Design Services and Integrated Solutions Consumer Electronics Repair and Maintenance Computer and Office Machine Repair, Maintenance and Support Services Communication Equipment Repair and Maintenance Other Electronic and Precision Equipment Repair and Maintenance Repair and Maintenance of Electronic Marine Equipment Research and Development of Electronic Equipment and Systems Import and Product Integration of Pre-Manufactured Electronic It and Telecommunications Equipment Research and Development In The Physical and Engineering Sciences Electronics Importation and Product Integration of Pre-Manufactured Electronics It and Telecommunications Equipment Telecommunications Importation and Product Integration of Pre-Manufactured Electronics It and Telecommunications Equipment Providing Radio and Television Transmission Signals Installation, Maintenance and Repair of Tracking Devices For Cars Motion Picture and Video Production and Distribution Related Activities - Film and Tape Renting To Other Industries, Booking, Delivery and Storage Film and Video Reproduction Bioscope Cafes Production and Broadcast of Radio and Television Broadcast Content News Agency Activities Advertising Activities of Advertising Agents Commercial Design Photographic Activities Source: Government Notice, No , Government Gazette, 11 th November

7 1.1. PERFORMANCE DELIVERY ENVIRONMENT Demand for services The demand for skills in the sector is varied. The workforce profile in the sector reflects an inverted pyramid, with more people employed in professional and technician occupational groups as compared to elementary occupations. The implication is that there is a need for more middle and high level skills within the sector. Critical skills are mainly required in technical areas to ensure continued relevance of practitioners abilities. All universities in South Africa produce skills that are relevant in the five sub-sectors of MICT SETA. The public TVET colleges tend to offer end-user type of computing skills and some generic business management and marketing programmes. There are 43 MICT SETA qualifications registered on the National Qualifications Framework of which 40% are at NQF level 4 and 37% at NQF level 5. Given the rapid technological advances being experienced in the sector, employers have to constantly train their workforce on the latest technologies, techniques and methods. The sub-sectors mainly utilise bespoke learning programmes developed by the organisations at the forefront of the particular technology. Thus there is a prevalence of vendor specific training programmes, especially in the IT and Telecommunications sub-sectors. Film & Electronic Media uses short courses to some extent. Some of the vendor programmes are highly credible amongst employers and are internationally recognised. They equip the learners with marketable skills. The scarce skills that have been identified in the sector are mainly in three occupational groups: managers, professionals and technicians/associate professionals. The employers in the sector have identified weaknesses with graduates from the public higher education institutions. These graduates still have to be exposed to the workplace upon completion and have been found to still require a lot of capacitation. The top 10 Pivotal skills identified in the sector are: Multimedia Designer Advertising Specialist Multimedia Specialist Director (Film, Television, Radio or Stage) Computer Network Technician Computer Network and Systems Engineer Developer Programmer Software Developer

8 Telecommunications Line Mechanic ICT Systems Analyst ` As pressure mounts with the advent of the National Development Plan, there will be more expectations from the skills development system to work more efficiently in delivering skills that are required by the economy. In order to achieve the requisite 5.4% economic growth being cited in the NDP, pressure would be on SETAs, including MICT SETA to facilitate sound skills development. The White Paper on Post School Education and Training together with the country s Integrated Human Resource Development Plan and the Labour Market Intelligence Programme (both under development) would require the SETAs to conduct their business differently. As it stands, there is an expectation that SETAs should work closely with public TVET colleges and HET institutions, providing accreditation for qualifications that have the potential to improve the employment capability of learners. Nature of challenges to be addressed The MICT sector has a number of sub-sectors, each with unique needs. In addition the MICT SETA is difficult to define separately from other sectors. There are strategic challenges across the economy that fall within the sphere of the MICT SETA that need to be addressed. There are also tensions between the aspirations of different stakeholders within the sector that need to be managed for the benefit of the sector. There are strategic challenges to address in the sector, such as achieving more South African based production, ensuring that growth is inclusive, deepening transformation in the sector, aligning the skills agenda to the needs of the economy, supporting innovation and paying greater attention to the needs of small businesses that have the potential for expanding employment. Priority sector development initiatives include: broadband roll-out for purposes of connectivity; developing the role of the MICT sector in the global market; new media; addressing new/emerging technology and supporting innovation; the Green Economy and protecting the environment; use of technology to support inclusion. These are the areas of sector development that the MICT stakeholders will work together to achieve agreed outcomes and impact in the sector. 4

9 The following sets out the proposed broad skills development objectives for the sector: Reliable labour market information. This includes improved and more consistent research, deepening of research partnerships, better management and use of data and information, a focus on knowledge creation and incrementally improving the sector skills plan by addressing weaknesses and deepening understanding of sector dynamics and needs. Improved flow of skilled people entering the sector. The scarce skills list will be the key focus of the sector. The focus will be on implementation of programmes to develop suitably qualified and competent people to be employed in these scarce skills occupations. Supporting the growth of small, medium and micro enterprises. This involves: linking skills development to other support, enabling an SMME to obtain funding for skills development whether or not it is a levy paying company, flexible and accessible programmes, assisting with workplace learning, supporting mentoring and incubator programmes and tailoring programmes to the needs of different sub-sectors and industries. There is a need to refine the strategy for small business development and tailor interventions to the needs of small entities in the different sub-sectors. Improved access to training. This involves working with sub-sector stakeholders to set realistic targets, monitoring engagement across provinces, regions, industries, occupations and different size companies, and where necessary put in place projects to plan and implementing accessible programmes. There will be a particular focus on the design of effective internships and the training of mentors to make such internships effective bridges into employment. Expansion of quality work integrated learning. This involves the identification of workplaces and supporting employers to achieve more effective use of workplaces for training and experience. There will also be discussions and co-planning with other relevant SETAs, so that frameworks can be put in place that enable access in all sectors of the economy to MICT programmes. There are a number of implications arising from the above strategy that will need to be addressed in the MICT SETA Strategic Plan and Annual Performance Plans. The SETA will: implement a comprehensive research, information and knowledge management strategy; map occupations to learning pathways; develop relevant 5

10 learning interventions; review grants policies and procedures; develop project management capacity; focus attention on workplace capacity for workplace learning and experience; establish partnerships with stakeholders, TVET colleges and universities for the implementation of the SSP; develop cross-sectoral partnerships and projects; develop RPL processes relevant to the sector; and review and formalise vendor programmes Organisational Environment The SETA is governed by a representative Board and its sub-committees which provide strategic direction to the organisation. The SETA has a staff complement of 71 employees to deliver on its mandate. The SETA signed a Service Level Agreement (SLA) with the Department of Higher Education to deliver on this Strategy. The substantial increase in the number of employees is attributable to new operational requirements, which amongst others was the increase in discretionary grants which were brought about in relation to its additional administrative establishment. The operations of the MICT SETA are centralised at the Midrand head office and there are Regional Offices in Cape Town, East London and Durban and a satellite office in Klerksdorp. The detailed organogram is included in the Human Resources Plan: ANNEXURE C. The SETA comprises three core divisions, namely: Sector Skills Planning (SSP), Learning Programmes Division (LPD) and Education and Training Quality Assurance (ETQA). The support divisions are Corporate Services (including Human Resources, Supply Chain Management and Marketing and Communications Business Units), Quality Management Systems and IT Business Unit. The SETA recruited and retained competent staff and implemented an effective performance management system to ensure delivery on its strategy and will continue doing so. Regular customer satisfaction surveys will be conducted to evaluate and to ensure continuous improvement and to strengthen customer relations. The SETA obtains its revenue from levies collected from its constituent employers as legislated through the Skills Development Levies (SDL) Act. Levies received are allocated in accordance with Mandatory Grants, Discretionary Grants and Administration costs as per the requirements of the SDL Act and the new SETA Grant Regulations that were published in December 2012, with the intention to 6

11 regulate the proportion of funds available for skills development and to encourage training on National Qualifications Framework (NQF) registered qualifications. 2. REVISIONS TO LEGISLATIVE AND OTHER MANDATES The MICT SETA is established in terms of the Skills Development Act, 1998 (Act No. 97 of 1998). Moreover, the MICT SETA operates within the following legislative mandates: Constitutional Mandates The sections within the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) that guide the operations of the MICT SETA include the following: - Promoting and maintaining high standards of ethics; - Providing service impartially, fairly, equitably and without bias; - Utilising resources efficiently and effectively; - Responding to people s needs; the citizens are encouraged to participate in policy-making; - Rendering an accountable, transparent, and development-oriented administration. Legislative Mandates - Skills Development Act 1998 (Act No 97 of 1998) as amended; - Skills Development Levies Act, 1999 (Act No 09 of 1999); - Regulations published in the Government Gazette, No , 03 December 2012 regarding Monies Received by a SETA and Related Matters. - South African Qualifications Authority Act, 1995 (Act No 58 of 1995); - The National Qualifications Framework Act, (Act No. 67 of 2008); - Public Finance Management Act (Act No 29 of 1999) ; - Employment Equity Act, 1998 (Act No 55, 1998). The other legislative frameworks include: - Human Resources Development Strategy of South Africa 18 March 2009; - National Skills Development Strategy (NSDS III) 2011/ /16; - Medium Term Strategic Framework ( ). 7

12 In developing the MICT SETA Annual Performance Plan, the following government priorities were taken into consideration: National Development Plan The Medium-Term Strategic Framework (MTSF) HRD Strategy New Growth Path (NGP) Industrial Policy Action Plan (IPAP) National Skills Accord Strategic Integrated Projects Comprehensive Rural Development Programme Corporate Governance of Information and Communication Technology Policy Framework (CGICTPF) These Government policy frameworks and programmes have one objective in common, addressing the triple ills of inequality, poverty and unemployment. These policies provide good guidelines and frameworks for the MICT SETA to work within, therefore the MICT SETA considered these frameworks and used them as the basis when developing its Annual Performance Plan. 8

13 3. OVERVIEW OF 2015 TO 2018 BUDGET FOR THE MTEF ESTIMATES 3.1. Expenditure estimates. The budget is detailed from the next page. 9

14 2015/ / /18 Income LEVIES RECEIVED * Admin (10.5%) * Discretionary (49.5%) * Mandatory (20%) Interest on bank accounts Penalties and interest Other income TOTAL INCOME Admin expenditure (excluding CAPEX & QCTO) * Internet, w ebsite and computer supplies * Advertising and promotion * Consultation/Outsourcing Finance Outsourcing Website support (ITO) outsourcing Facilitation fees Secretarial Services Legal consultants SCM consultants HR consulting Video Conferencing Employee w ell being Consulting fees * Audit (internal) * Audit (external) * Rental - buildings * Rental - equipment * Travel and accommodation * Payroll * other Board- and Board Subcommittee expenses Conferences, Seminars & Forums Legal Fees Postage and Courier Services Staff refreshments Stationary Focus Groups Printing Telephone/cellphone and call centre Training and Staff Development Research and development Water and Electricity Vuselela FET College annual running costs Other categories CAPEX budget QCTO costs MANDATORY Mandatory expenditure Discretionary expenditure Pivotal programmes Other discretionary projects Post - education sector funding - - TOTAL EXPENSES FET infrastructure payment Total expenses (including FET Infrastructure) Surplus due to expenditure capping (Deficit)/Surplus

15 SUMMARY-"other" admin expenditure budget Description 2015/ / /19 Admin expenses-plants Bad debt expense Bank Charges Catering and Entertainment Cleaning Costs Employee's dependents exp ETQA Certificates Gifts Leave Pay Licenses Other audit (ISO 9001 Audit) Repair and Maintenance Recruitment Security Expenses Short Term Insurance Subscription and Membership Transport costs Workshops & Roadshow s Workmen's Compensation Notes: 1. The total budgeted income of R is based on actual historic figures and has not been revised to the MTEF revised allocation of R in order to be prudent. 11

16 The information used and assumptions made in the preparation of the budget: Levy Income The levy income budget for 2015/16 was based on the average actual levies received in the past years for MICT SETA. Annual inflation rate is assumed to be 6.84% and the annual growth in the industry is assumed to approximate 24%. The actual spending will be based and guided by actual levy income received for 2015/16 and not solely on the budgeted income so as to mitigate the risk of overspending when the levy income is lower than initially budgeted for. Mandatory Grants MICT SETA has taken into account the new grant regulations that became effective on 1 April 2013, which is an allocation of mandatory expenditure of 20% in line with the mandatory grant income allocation. We have assumed a pay-out percentage of 85%. The 2013/14 actual pay-out percentage was 85%. Discretionary Programmes and Pivotal Grant Expense The pivotal grant which become effective from 1 April 2013 has been taken into account in the discretionary grant expenditure allocation. Administration and mandatory levy income that has not been spent on administration and mandatory expenditure will be swept to discretionary reserves and can be spent on discretionary programmes. Hence, the discretionary budget is a result of budgeted discretionary levy income, budgeted unspent admin and mandatory levy income and interest received. The discretionary programme expenditure budget will be used to fund programmes in line with NSDS III and in line with the MICT SETA performance targets. The discretionary expenditure budget will aim to address the following: Establishing a credible institutional mechanism for skills planning Increasing access to occupationally directed programmes Increasing and improving workplaces capacity to meet skills development needs Promoting the growth of Public FET College systems Supporting and developing SMEs, Unions, Cooperatives and NGOs within the MICT sector 12

17 Building career and vocational guidance. 13

18 PART B: PROGRAMME AND SUBPROGRAMME PLANS 4. PROGRAMME 1: EDUCATION AND TRAINING QUALITY ASSURANCE PURPOSE To create access to quality programmes and to quality assure training provision in the Media, Advertising and ICT sub-sectors. STRUCTURE The institutions responsible for the performance delivery include the South African Qualifications Authority (SAQA), the Quality Council for Trades and Occupations (QCTO), Training Providers, Learners and employers. The key personnel for the MICT SETA are the CEO, the Senior Manager QA and the specialists and advisors. STRATEGIC OBJECTIVES Strategic Objective Audited/Actual performance Estimated performance Medium term targets Create access to quality programmes by quality assuring provision Accredited Providers PROGRAMME PERFORMANCE INDICATORS Programme Performance Indicator 1.1 Number of registered assessors 1.2 Number of registered moderators Audited/Actual performance Estimated performance Medium term targets for Number of registered qualifications

19 QUARTERLY TARGETS FOR Performance indicator Reporting period Annual Target Quarterly targets Q1 Q2 Q3 Q4 1.2 Number of registered assessors 1.2 Number of registered moderators 1.3 Number of registered qualifications Annually Annually Annually

20 PROGRAMME 2: LEARNING PROGRAMMES PURPOSE To implement and monitor learning programmes in the Media, Advertising and ICT subsectors. STRUCTURE The institutions responsible for the performance delivery include the constituent Employers, Training Providers and Learners. The key personnel for the function are the CEO, Senior Manager Learning Programmes Division (LPD) and Advisors. STRATEGIC OBJECTIVE ANNUAL TARGETS FOR Strategic Objective Audited/Actual performance Estimated performance Medium term targets Increase access to occupationally directed learning programmes PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR Programme Performance Indicator 1.1 Number of Workers Entering Skills Programmes 1.2 Number of Workers Certificated in Skills Programmes 1.3 Number of Unemployed Entering Learnerships 1.4 Number of Unemployed Audited/Actual performance Estimated performance Medium term targets

21 University learners supported through bursaries. 1.5 Number of FET Learners assisted with work experience through internship. 1.6 Number of students supported through graduates Internship Programme. 1.7 Number of Unemployed Entering Skills Programmes 1.8 Number of Unemployed Certificated in Learnerships 1.9 Number of Unemployed Certificated in Skills Programmes 1.10 Number of FET College Partnerships 1.11 Number of Collaborative Agreements in place with Universities and Stakeholders 1.12 Number of Small Business

22 Supported 1.13 Number of Career Guide distributed QUARTERLY TARGETS FOR Performance indicator Reporting period Annual Target Quarterly targets Q1 Q2 Q3 Q4 1.1 Number of Workers Entering Skills Programmes 1.2 Number of Workers Certificated in Skills Programmes Number of Unemployed Entering Learnerships Number of Unemployed University learners supported through bursaries. Number of FET Learners assisted with work experience through internship. Number of students supported through graduates Internship Programme. Number of Unemployed Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly

23 Entering Skills Programmes Number of Unemployed Certificated in Learnerships Number of Unemployed Certificated in Skills Programmes Number of FET College Partnerships Number of Collaborative Agreements in place with Universities and Stakeholders Number of Small Business Supported Number of Career Guide distributed Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly

24 PROGRAMME 3: SECTOR SKILLS PLANNING PURPOSE To conduct research and ensure a professionally developed sector skills plan that reflects an accurate list of scarce and critical skills, serving as the basis for the SETA s Strategic Plan. STRUCTURE The institutions responsible for the performance delivery include the employers and Skills Development Facilitators (SDFs). The key personnel for the function are the CEO, Senior Manager Sector Skills Planning SSP and advisors. STRATEGIC OBJECTIVE ANNUAL TARGETS FOR Strategic Objective 1 Audited/Actual performance Estimated performance Medium term targets for Establish a credible mechanism for skills planning 1 SMS with credible data. 1 partnership (JCSE). 1 SMS with credible data. 1partnership (CEPD). 1 SMS with credible data. 1 partnership (CEPD) SSP. 1 SSP. 1 SSP PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR Programme Performance Indicator Audited/Actual performance Estimated performance Medium term targets for SETA Management System (SMS) with credible data maintained. 1 SMS with credible data. 1 SMS with credible data. 1 SMS with credible data Partnerships with research institutions established. 1.3 Professionally researched and 1 (JCSE). 1 (CEPD). 1 (CEPD) SSP. 1 SSP. 1 SSP

25 credible SSP. developed. QUARTERLY TARGETS FOR Performance indicator Reporting period Annual Target Quarterly targets Q1 Q2 Q3 Q4 1.2 SETA Management System (SMS) with credible data maintained. 1.2 Partnerships with research institutions established. 1.3 Professionally researched and credible SSP. developed. Annually. 1 1 Annually. 1 1 Annually. 1 1 STRATEGIC OBJECTIVE ANNUAL TARGETS FOR

26 Strategic Objective 2 Audited/Actual performance Estimated performance for Medium term targets Increase access to career and vocational guidance within the MICT sector PROGRAMME PERFORMANCE INDICATORS Programme Performance Indicator 2.1 Career Opportunities Guide with labour market information developed. 2.2 Career Opportunities Guide with labour market information distributed. Audited/Actual performance Estimated performance Medium term targets for QUARTERLY TARGETS FOR Performance indicator Reporting period Annual Target Quarterly targets 2.1 Career Opportunities Guide with labour market information developed. 2.2 Career Opportunities Guide with labour market information distributed. Annually. 1 1 Annually

27 PART C LINKS TO OTHER PLANS The SETA does not have any long-term infrastructural plan. RISK MANAGEMENT See Annexure E 23