Local Government Sector Education
Training Authority
BUDGET REVIEW REPORT 2007/8
TO
PORTFOLIO COMMITTEE ON PROVINCIAL & LOCAL
GOVERNMENT
SAM MALOKA
1
CHAIRPERSON
Chairperson’s Report
The LGSETA‘s financial year end report for the period 2007\08 ends a remarkable period in the
history of the organization. The seta made significant strides in bringing key projects and
programmes to fruition which largely address the seta’s key strategic priority areas;




Development of training materials for traditional leaders ( LED and Community Development)
Launch and Training of Traditional leaders
Launch of Training for Ward Committee programme
National Skills Colloquium which was held in May 2007 which assisted the sector in
responding to the sector challenges pertaining to matters related to training and development
The seta has also made some impact in the field of the scarce skills by providing bursaries to
qualifying young learners to study in the following fields that are cornerstone to Municipalities in
providing service delivery to the communities:



Electrical Engineering
Water Services
Civil Engineering
An amount of R 1m has been budgeted for this purpose and to date at least an amount of R197 000
has been allocated in a form of bursaries to 20learners
2
Chairperson’s Report
Cntd…/1
The funds mentioned above for bursaries may not be necessary sufficient and as the sector together with the
department of education we would need to motivate and encourage learners particularly from high school level
to consider technical studies as an attempt to deal with a shortage of skills in the technical field within the
local government sector
The seta also prides itself for the work done in development of the following learnerships that would be
implemented in the next financial year: 2007/8
Municipal finance NQF level 5 & 6
Emergency service operations NQF level 4 & 5
Councilor Practice
Ward Committee
IDP
Traditional Leadership
The abovementioned qualifications could not have been successfully developed if it were not the assistance
and commitment of the following strategic partners:
IMFO (Institute of Municipal Finance Officers)
 SEASI (Institute of Fire Officers)
 German Technical cooperation (GTZ)
DPLG
SALGA

In an attempt to coordinate training and development matters within the sector, the LGSETA has entered into a
Memorandum of Understanding with its strategic partners, namely DPLG and SALGA to ensure that a
cohesive approach in coordinating of training is achieved.
3
Chairperson’s Report
Cntd…/2
The 2006/7 SSP process identified skills gaps in the sector in the
following areas:
Infrastructure
Municipal
and service delivery
financial viability
Community
based participation and planning
Management
and leadership
ABET
The year 2007\8 has been one of the exciting one of the seta in terms of achieving its target and
hope that by the end of seta license in 2010 the seta would have complied accordingly as per
service level agreement entered into with department of labour and the impact made through seta
initiatives would have changed lives of ordinary people within their communities
4
Sector Skills Planning
Cont…/1
The LGSETA has engaged in a series of discretionary grant funded projects to attempt to assist the sector
in addressing these skills gaps.
Strategic Priority Area:
Project Name:
Mode of delivery:
Infrastructure and service delivery





infrastructure asset maintenance
labour intensive construction (EPWP)
electricity reticulation
water services
roads






RPL
Learnership
Skills programme
Internship
Bursary
Apprenticeship
Financial viability
•


property valuation
audit and procurement
municipal finance
•




RPL
Learnership
Skills programme
Internship
Bursary
Community based participation and planning
•



Ward committees
Planning
IDP s
LED
•



RPL
Learnership
Skills programme
Internship
Management and leadership
•


Training committees
Councillors
Municipal Leadership Development
•


RPL
Learnership
Skills programme
ABET
•
Municipal Employees

structured learning
5
Sector Skills Planning
Cntd…/2
1. Research and Information Management:
SSP research was conducted into scarce skills in the sector. These findings were incorporated into our
Sector Skills Plan update which was signed off by the DPLG and was approved by the Dept of Labour in
February 2008.
The basis of the scarce skills research are the Workplace Skills Plans submitted by municipalities and
municipal entities. The LGSETA has a 90% submission rate of WSPs from the sector, of a steadily
improving quality. As a result our data on the sector is becoming increasingly accurate.
The updated scarce skills listing has been distributed to the sector, and Skills Development Facilitators in the
sector have been trained in the use of the scarce skills guide.
In addition, to training on the scarce skills guide the SDFs have been trained on the use of the new WSP
template, guideline and quality criteria.
A new quarterly monitoring reporting schedule has been distributed to municipalities, allowing the LGSETA
to capture the levels of training undertaken in the sector more accurately, and allowing us to fulfill our
reporting obligations to the Dept of Labour. The template allows the LGSETA to monitor municipal
expenditure on training funded by the mandatory grant.
BUDGET: R2, 6m
EXPNDITURE: R 1,38m
6
Comparative WSP Submissions
Municipal
Type
2004/5
percentage
2005/6
percentage
2006/7
Percentage
2007/8
Percentage
Metropolitan
6
100%
5
83%
5
83%
6
100%
District
37
78%
27
57%
38
82%
206
89%
Local
177
76%
145
62%
181
78%
43
93%
Total
220
177
224
255
Mandatory Grants Disbursed over two quarters = R29,3m
7
Sector Skills Planning
Cntd…/3
Discretionary grant funded projects:


Training of traditional leaders ( in conjunction with the NHTL and DPLG): to
date contracts worth approximately R 1,8m have been signed with: North West,
Limpopo, Mpumalanga and the Eastern Cape, covering the training of
approximately of 480 traditional leaders in community facilitation and local
economic development. Assistance will also be given to KZN to provide ABET for
traditional leaders
Budget: R5m
Expenditure: R1,8m
Infrastructure Asset Management training: new programme has been
instituted on the training of municipal officials in infrastructure asset management.
Approximately 600 officials will be trained in the first year, commencing April
2008. It is envisaged that a further 1200 will be trained later. In addition to the
training, the project will register a customized qualification in infrastructure asset
management.
Budget: R5,5m
Expenditure: R3, 78m
8
Sector Skills Planning
Cntd…/4
1.2 ABET
A feasibility study was commissioned and concluded on assessing the possibility of developing a
customized ABET programme relevant to the sector’s specific needs. A tender was launched and awarded
to a consortium comprised of UNISA ABET Institute, and the SA Institute for Distance Education.
Budget: R2.2m
Expenditure: R0
It is hoped that the introduction of a streamlined focused ABET programme targeted specifically at the
needs of our sector will improve the participation rates for ABET in our sector. Currently, the position is as
follows:
PROVINCE
.
CONTRACTS ISSUED
CONTRACTS RECEIVED
TOTAL NO. OF LEARNERS
Eastern Cape
2
1
44
Free State
3
2
570
Gauteng
3
2
375
Kwazulu/Natal
1
1
34
Limpopo
1
1
160
Mpumalanga
1
1
110
North West
6
2
457
Western Cape
12
1
444
TOTAL
29
11
2194
Northern Cape
9
Sector Skills Planning
Cntd…/5
1.3 Discretionary Grant Funded strategic projects and Scarce Skills Initiatives:
1.3.1 South African Council for the Property Valuers Profession (SACPVP):
The 2006/7 SSP review demonstrated a lack of capacity within the sector to implement the Municipal
Property Rates Act. Consequently, the LGSETA approved a discretionary grant funded project to be
implemented in conjunction with the SACPVP and DPLG to contribute to increasing municipal capacity in
this area. An amount of R 7,5m has been committed to this project over a three year period. This amount
will provide bursaries for 50 students p.a. (150 bursaries over 3 years) and internships for 100 students
over 3 years. Currently, 100 bursaries have been awarded ( 2007 = 50, 2008= 50). However, only 12
interns have been placed in municipalities to date, due to a scarcity of suitable candidates.
Budget: R7.5m (3 years)
Expenditure: R655 000
1.3.2 South African Institution for Civil Engineers (SAICE):
The 2005/6 SSP Review revealed a severe shortage within in the sector of suitably qualified engineers and
engineering technicians which affects the sectors capacity to deliver services. Consequently funding was
set aside for both bursaries and internships and SAICE was contracted to administer the project. The
project has been running for 3 years and 60 engineering bursaries have been awarded to municipal
employees wishing to further their studies in engineering ( part time studies). A total of 240 engineering
interns have been placed at municipalities over the three year period. The project is scheduled to continue
until 2010.
Budget :R1m (1 year)
Expenditure: R196 000
10
Sector Skills Planning
Cntd…/6
1.3.4 Institute of Municipal Finance Officers (IMFO)
The Institute of Municipal Finance Officers was contracted to administer bursaries and internship schemes.
The focus of these schemes was informed by the inadequately qualified internal audit personnel in
municipalities. An amount of R 7,900, 000. 00 has been committed to this project over a three year period.
This amount will provide bursaries for 100 students and internships for 100 students per annum. Bursaries will
be awarded, and interns placed during April. Budget: R3.5m
Expenditure: R 525 000
1.3.5 Local Government Network (LGNET)/Local Government Resource Centre (LGRC)
The above project is funded by LGSETA and initiated by the Development Bank of Southern Africa. An amount
of R5m was set aside for the implementation of the project during the 2007/08 period and DBSA was
contracted to administer the project. About 144 Municipalities will acquire basic Information Technology
knowledge and skills through this project. To date 20 municipalities have completed their training ( 223
officials). Budget: R5.7m
Expenditure: R2.85m
1.3.6 Local Government Skills Audit:
In conjunction with DPLG, SALGA, SAMWU and IMATU the LGSETA is implementing the sector wide skills audit
of all municipal staff. The skills audit commenced in August 2007 and is scheduled to be completed by 2010.
The Section 57 skills audit process has been fast tracked and will be completed by November 2008. To date,
approximately 15 municipalities have been completed. A further outcome of the skills audit will be the
establishment of recommendations and guidelines for staffing norms and organograms linked to service
delivery needs. Budget: R15m
Expenditure: R2m
11
Sector Skills Planning
Cntd…/7
1.3 Discretionary Grant Funded strategic projects and Scarce Skills Initiatives:
1.3.7 Community Development Workers
A grant was approved to train a further 590 community development workers, mainly in the North West
and Limpopo provinces.
Budget: R13m
Expenditure; R6.38m
12
LEARNERSHIP
In giving effect to its legislative obligations in terms of the Skills Development
Act,1998 (Act No. 97 of 1998),which requires the LGSETA to establish, register,
promote and administer learnerships in the Local Government Sector.
The Learnership department has been involved in the following functions;



Ensuring the development of qualification and skills programmes which address
the needs of the sector;
Initiating and supervising the implementation of a wide range of needs-oriented
training interventions in the form of Learnerships, Skills Programmes,
Apprenticeships or other types of structured learning;
Ensuring the disbursement of discretionary grants to municipalities ;
Furthermore, the Department has also supported the implementation of quality
Training with the commissioning and provision of comprehensive training and
support material to accredited training providers to as part of a more strategic
intervention.
13
LEARNERSHIP
Cntd/...2
2.1 Career path and professional progression
Based on the analysis of the Workplace Skills Plan and with inputs from the major
stakeholders such as the Department for Provincial and Local Government (the
dplg), National Treasury (NT) and SALGA the LGSETA is continuously
implementing and expanding a comprehensive career path for municipal
employees.
The Career path and progression diagram (on slide 17) illustrates this strategy,
where an employee has the chance to progress from one NQF level to another
level. With this approach the professional progression of employees is supported
and which will also lead to improved service delivery of local government.
14
LEARNERSHIP
Cntd/...3
7
6
National
Certificate
Municipal
Finance
National
Certificate LED
5
National
Diploma
Municipal
Finance
National
Certificate LED
4
National
Certificate
Municipal
Finance
National
Certificate LED
3
National
Certificate:
Intro to Local
Government
2
1
National
Certificate
Transport
Planning
National
Certificate IDP
National
Certificate
Transport
Planning
National
Certificate in
Community
Dev. Worker
National
Certificate Fire
& Rescue
Operations
National
Certificate
Road Traffic
Management
National
Certificate in
Community
Development
Worker
Municipal
Leadership
Development
Programme
National
Certificate
Environmental
Practice
National
Certificate
Councilor
Training
National
Certificate
Environmental
Practice
National
Certificate
Ward
Committee
Training
National
Certificate
Environmental
Practice
National
Certificate
Environmental
Practice
15
LEARNERSHIP cntd/...4
2.2 Progress on the Implementation of Learnerships
In the 2007 / 08 financial year, the municipalities at all levels increasingly implemented a wide range of
unit standard based training, in particular Learnership programmes:
16
LEARNERSHIP cntd/...5
Learnership
Learners
Community Development Worker (CDW), NQF 4
102
Admin & Finance, NQF 4 -
159
Local Economic Development, NQF 4 -
48
End User Computing
100
Emergency Services Operations, NQF 5 –
66
Road Traffic Management
16
Basic Pharmacy
10
ODETDP
11
Basic Technical Practice
16
Environmental Practice
16
Internal Audit Technician
10
Electrical engineering (NQF 2) –
37
Water Purification Process Operations ((NQF 2) –
40
Wastewater Process Operations (NQF 2) -
95
Water Reticulation Services (NQF 2) –
40
e Records Management (NQF 4)
0
Sanitation Project Coordination (NQF 5)
0
Customer Management (NQF Level 5)
0
Training and Development Practice (NQF 5)
0
Total
766
17
LEARNERSHIP
Cntd/...5
2.3 Apprenticeships and artisan Learnerships
By contributing to the national priority on scarce skills the LGSETA is also focusing on promoting and
funding training in the artisan field in the form of apprenticeships or artisan Learnerships
Apprenticeship
Learners
Automotive Electrician
3
Automotive Machinist
0
Boilermaker
5
Bricklayer
0
Diesel Mechanic
24
Electrician
117
Fitter and Turner
15
Motor Mechanic
4
Plater and Welder
0
Plumber
13
Vehicle Mechanic
Welder
13
Various artisan Learnerships
2
Total artisan training
196
18
LEARNERSHIP
Cntd/...9
2.4.4 Municipal Finance & National Treasury
Training has been completed at the cost for 380 employees to do a Municipal Finance Management Programme
offered by Wits University in the eleven core National Treasury competencies for Municipal Finance Managers.
The cost of training per Learners is R45 000.00. The funding is directly from municipalities assisted by national
treasury
Budget: R17.1m
Expenditure: R17.1m
A further 150 municipal finance officials are being trained as part of a partnership between IMFO and ABSA.
The training is being monitored by the LGSETA and funded by ABSA bank through the University Pretoria
Budget: R1.6m
Expenditure: R870 000.00
19
ETQA
3. EDUCATION TRAINING QUALITY ASSURANCE (ETQA)
The LGSETA in line with its re-accreditation mandate by the SAQA on 27 September 2005 has continued to
fulfil its main primary functions outlined below on quality assurance of Education Training and Development
within the Local Government sector.
In the performance of these functions, as further discussed in this report, the LGSETA has continuously
reported to SAQA on the performance of its mandatory functions and positive feedback from SAQA has been
received through their monitoring and auditing, however, certain areas were identified for improvement.
The LGSETA has continued to develop qualifications and standards within its primary focus areas, especially
Ward Committee, Fire and Rescue, Environmental Practice, etc. This allowed the possibility of accreditation of
providers that were greatly limited in some areas of training to deliver learning. It further enhanced the
registration of assessors and moderators against such qualifications as scarcity continued to exist with respect
to ETD Practitioners within the Local Government sector around specific fields of expertise.
The LGSETA has therefore continued to ensure that all training was monitored and evaluated so that quality
measures were not compromised. This report therefore highlights most of the work performed by the ETQA
division in line with its quality assurance mandate.
MILESTONES
The LGSETA has made significant milestones in the performance of its quality assurance functions in the
current financial year.
20
ETQA
Cntd/..1
QUALITY PROMOTION AND PROVIDER DEVELOPMENT






The LGSETA has nationally rolled out six projects to ensure that there is a greater pool of Education
Training and Development providers, Assessors, Mentors, Coaches, Moderators, and RPL Advisors are
available to perform quality assurance functions in the attainment of the qualifications:
Accreditation of Providers: Provider development workshops have been completed and they are
currently being supported on submitting accreditation PoEs. Approximately 30 ETD providers out of the
targeted 90 (i.e. 10 per province) have submitted PoEs..
Quality Management System: Provider development workshops have been completed and
approximately 166 delegates attended workshops in all 9 provinces. A provider QMS toolkit has been
developed for use by providers seeking accreditation.
Training of Assessors, Coaches and Mentors: Training has been conducted in all 9 provinces and
741 candidate Assessors/Coaches/Mentors, as opposed to the targeted 900 have been trained. All have
been found competent.
Training of Moderators and Verifiers: Moderator/Verifier training has begun in the 9 provinces on
the 741 Assessors found competent. This will ensure that a pool of Moderators exist in the sector.
Apprenticeships Assessment System: An pilot apprenticeship transformation project has begun at
the Ekurhuleni Training Centre. The pilot aims to structure the curriculum in NQF format, develop the
level 3 and level 4 assessment tools, identify and analyse learning materials for any gaps which need to
be addressed
21
ETQA
Cntd/..2
PROVIDER DEVELOPMENT SUPPORT FOR THE TRADITIONAL LEADERSHIP DEVELOPMENT
PROGRAMME (TLDP)
The
LGSETA has developed a TLDP at NQF level 4 to train Traditional Leaders in different
provinces.
The
TLDP is based on two skills programmes focusing on Local Economic Development and
Community Development Worker linked to 5 unit standards
The
learning material and assessment guides were developed with specific focus to LED and
Community Facilitation unit standards.
A
total of 25 ETD providers have been accredited and/or programme approved to deliver the
TLDP and these are spread across the provinces.
The
TLDP project is viewed as one of the successful projects that focuses on providing quality
training for AmaKhosi.
22
ETQA
Cntd/..3
STANDARDS GENERATION
The LGSETA and SAQA set up a Joint Implementation Plan (JIP) to facilitate and fast track the generation of
qualifications and their associated unit standards in the various fields within Local Government.

24 registered qualifications have been accredited to the LGSETA,

All these qualifications have been supported by the JIP process between SAQA and the LGSETA.

Bi-monthly meetings are held with SAQA’s Standards Setting Directorate.
The LGSETA is proud to highlight that a number of training providers have been accredited against these
qualifications and this also includes SMME training providers.

Further development of these qualifications to higher NQF levels is envisaged to ensure articulation and
career pathing possibilities.

23
ETQA
Cntd/..4
ACCREDITED AND PROGRAMME APPROVED PROVIDERS
The LGSETA is proud to highlight that a total number of 96 providers have accredited and
programme approved within the current financial year.
Most of the training providers have been accredited against full qualifications and this has assisted
the LGSETA to ensure that the learners enrolled attained full recognition of their achievements
against registered qualifications.
24
ETQA
Provinces
Cntd/..5
NUMBER OF ACCREDITED TRAINING PROVIDERS
Eastern Cape
10
Free State
9
Gauteng
35
Limpopo
8
Mpumalanga
1
N Cape
2
North West
3
W Cape
10
KZ- Natal
19
TOTAL
96
25
ETQA
PROVINCE
Cntd/..6
NUMBER OF REGISTERED ASSESSORS & MODERATORS
Assessors
Moderators
Assessors
Moderators
Free State
39
12
Gauteng
23
8
Limpopo
101
27
Mpumalanga
14
2
N Cape
9
0
North West
0
0
W Cape
11
1
KZ- Natal
46
12
TOTAL
54
7
Eastern Cape
26
FINANCE & IT
7. LGSETA FINANCES AND INFORMATION TECHNOLOGY
The mandate of the Finance and IT Department is to plan , execute and to efficiently manage the finances
of the LGSETA to ensure that assets of the organisation are properly managed , safeguarded and that a
fair and transparent procurement system is implemented in terms of the LGSETA policy and applicable
legislation in this regard.
In streamlining the objectives of the Finance and IT Department, the Finance \Tender Committee plays an
important role in ensuring effective and transparent control over the financial processes and procedures
which have been implemented to ensure to ensure that the finances of the LGSETA are efficiently managed.
The Finance/Tender committee has met three times during the 2007\8 financial year. The Committee
approved tenders and recommended policies to the EXCO for approval. The following internal audits were
completed during the year under review:






Finance and administration
Governance and regulatory
Human Resources
Procurement and programmes
Information Technology system
The reports of the independent Internal Auditors are submitted to the Audit Committee. The Audit Committee
has met five times during the year under review and both the internal and external audit reports were dealt
with accordingly at these meetings.
27
FINANCE & IT
Cntd… 1
SKILLS DEVELOPMENT LEVY INCOME AND EXPENDITURE
In terms of section 3(1) and 3(4) of the Skills Development Act, 1999(Act no 9of 1999), registered member
companies of the LGSETA pay a skills development levy of 1% of the total payroll cost to the South
African Revenue Services who then collects the levies on behalf of the Department of Labour. The
Department of Labour transfers eighty percent of the total skills development levy paid by employers in the
sector to the LGSETA and twenty percent to the National Skills Authority Fund of which two percent is paid
to SARS for collecting skills development levies.
It must be noted that LGSETA Database currently makes provision for demarcation code for employers
within the local government sector and therefore “other “ in the charts below represents employers in the
sector including employers which have been incorrectly registered with the LGSETA. The total Skills
Development Levy Income accounted by the LGSETA as at 31 Dec 2007 for the 2007\8 financial year
amounts to R125,5 million
ACTUAL SDL LEVY INCOME (80%) FOR ALL LEVY YEARS
RECEIVED IN THE FINANCIAL YEAR 2007/2008 as at 31 Dec 2007
Other
1%
Western Cape
18%
Other
Eastern Cape
11%
Eastern Cape
Free State
6%
Free State
Gauteng
North-West Province
5%
KwaZulu Natal
Northern Cape
2%
Limpopo
Mpumalanga
5%
Mpumalanga
Limpopo
5%
Northern Cape
Gauteng
29%
North-West Province
Western Cape
KwaZulu Natal
18%
28
LGSETA ADMIN LEVIES VS EXPENDITURE
2003 TO 2008
25,000
20,000
R000'S
15,000
90%
10,000
104%
84%
101%
94%
81%
5,000
0
2002/03
2003/04
2005/06
2004/05
Levy Income
2006/07
2007/08
(As at 31 Dec 07)
Expenses
29
FINANCE& IT
cntd/..3
ACTUAL MANDATORY GRANTS DISBURSED - LEVY YEAR 2008
Western Cape
7%
North-West Province
7%
Eastern Cape
6%
Free State
Eastern Cape
Free State
6%
Northern Cape
3%
Gauteng
Mpumalanga
5%
KwaZulu Natal
Limpopo
5%
Limpopo
Gauteng
36%
Mpumalanga
Northern Cape
KwaZulu Natal
25%
North-West Province
Western Cape
30
FINANCE & IT
cntd/..4
Actual Mandatory Income versus Disbursements
Levy Year 2008
25,000,000
20,000,000
Mandatory Levy
Income
15,000,000
10,000,000
Disbursements
5,000,000
O
th
Ea
er
st
er
n
C
ap
e
Fr
ee
S
ta
te
G
au
te
K
ng
w
aZ
ul
u
N
at
al
Li
m
po
po
M
pu
m
al
an
N
or
ga
t
h
N
e
or
rn
th
C
-W
ap
es
e
tP
ro
vi
nc
W
e
es
te
rn
Ca
pe
0
31
FINANCE & IT
Cntd/…5
Discretionary Grant Income & Expenditure
The Discretionary Fund comprise of 20% (2005: 10%) Discretionary Grant income from the Skills Development
Levy, interest and penalties paid by employers in the sector, interest accrued, unspent income for
administration from previous years and unclaimed Mandatory Grant income which have been transferred to the
Discretionary Fund and interest accrued.
The Executive Committee have approved funding to be utilized during the 2005 – 2010 financial years from the
Discretionary Fund for Discretionary Grants and Special Projects with the aim of strengthening training
activities in the sector through support to learnerships, skills programmes and apprenticeships, to address the
priorities identified in the LGSETA Sector Skills Plan and to meet NSDS targets in accordance with the MOU
with the Department of Labour.
An amount of R21 million has been disbursed from Discretionary Funds to the end of December 2007. The
projects which have not been completed during the 2007/2008 financial year will continue in the 2008/2009Financial Year. Further sector priorities had been identified and funds have been allocated from the
Discretionary Fund accordingly to be utilized during the 2005-2010 financial year.
CONCLUSION
Given the challenges faced by the sector in particular to continuous restructuring of municipal staff strictures
much has been done in terms training and development but one cannot disregard that the local government
sector is one of the most politicized environment and in certain instances such conditions may interferer with
delivery of training including seta projects that impacts towards negative impacts in achieving seta targets
32
CONCLUSION
THANK YOU!
33