NATIONAL SKILLS FUND
FINAL PROJECT CLOSURE
REPORT
FASSET
SUBMISSION OF
FINAL PROJECT CLOSURE
REPORT
NATIONAL SKILLS FUND
STRATEGIC PROJECT
Thuthuka KwaZulu-Natal and Limpopo Project
We hereby certify that the enclosed report is the complete and final report to the Department of Labour in fulfilment of the Memorandum of Agreement for the National Skills Fund Strategic Project
Signed: ______Date: ______
CFO
Signed: ______Date: ______
CEO
Table of contents
Page
1.Executive summary4
2.Background information on the project
2.1Project context/strategic focus5
2.2Target beneficiaries and objectives6
2.3Project summary data6
2.4Project administration8
2.5Project governance and oversight8
3.Project implementation
3.1Project organisation and management9
3.2 Project activities and intervention methods11
3.3Project results12
3.4Project risk management12
3.5Project monitoring and evaluation14
4.Project performance
4.1Project Performance in terms of objectives15
4.2 Project financial performance16
4.3Project partnerships16
5.Sustaining project impact
5.1 Project sustainability17
5.2 Knowledge management process18
6.Conclusion19
7. Appendices22
1.Executive summary
The Thuthuka Education Upliftment Project KwaZulu-Natal and Limpopo was one of Fasset’s (the Seta for Finance, Accounting, Management Consulting and Other Financial Services), largest Social Development Project. The project was made possible through funding from the National Skills Fund’s Strategic Projects Funding Window.Fasset’s role in the project was a governance role; the South African Institute of Chartered Accountants (SAICA) is responsible for the management and delivery of the project.
This school-level programme started in 2004 and ran for a three year period. The National Skills Fund Thuthuka project in the Eastern Capestarted in 2002 and had been successfully addressing a number of issues relating to the low supply of sufficiently equipped learners to enter tertiary studies within the financial fields from its inception in 2002. The tremendous success of the programme lead to the extension, through the National Skills Fund, of the project to the Limpopo and KwaZulu-Natal provinces, as well as the extension, through funding from Emperors Palace, to the Gauteng province. The continued ability of the Thuthuka project to tackle the national problem of literacy and numeracy at a school level has also attracted the interest of the Department of Science and Technology, who has provided funding for the running of Thuthuka camps in each province from 2005 to 2009.
This multi-faceted project had a school-level and an undergraduate-level component. The school-level programme sought to improve the numerical, literacy and accounting skills of Grade 11 and 12 learners in KwaZulu-Natal and Limpopo, through Learner and Educator Clinics. By raising the skills levels of learners from previously disadvantaged backgrounds, it was expected that many more learners will be able to attend university, and choose accountancy as a career path. This level of the project also includes a Personal Financial Management Clinic for the participating schools in order to improve school management and governance.
The undergraduate-level of the project sought to build capacity in the Centre of Accounting at the University of Limpopo. The overall objectivewas to build sufficient capacity at theUniversity of Limpopo, to enable the university to provide a SAICA accredited Accounting degree.
While extension of the original plan would allow a greater entrenchment of skills within the school level programme, the most critical factor for ongoing support was the accreditation process for the University of Limpopo. In 2007, a separate project was approved for the provision of extended support to the University of Limpopo. The key objective of the tertiary level project was to ensure that SAICA, as a registered ETQA, could effectively accredit an institution that was not previously recognised and accredited. The programme is a four-year degree, with the first graduates having graduated at the end of 2007.
2.Background information on the project
2.1Project context/strategic focus
The South African Institute of Chartered Accountants (SAICA), proposed the Thuthuka KZN/Limpopo Upliftment Project (EUPEC) as a means of extending their ability to addressthe dire need for transformation within its sector. Although the profession had implemented a number of initiatives to fast track transformation, including bursary schemes and “Adopt a School Programmes”, these had only met with limited success, as is evident from the fact that by March 2005, there were still only 507 African CAs qualified in South Africa (about 30 were working outside SA).
The institute implemented its own transformation drive in 2001, under the banner of “Thuthuka”, meaning “to develop” in Zulu. One of the institute’s overall key strategic objectives is to ensure that the demographic profile of the profession matches the demographic profile of the country.
The promulgation of the National Skills Development Strategy (NSDS) and the establishment of Sectoral Education and Training Authorities (SETAS) provided SAICA with opportunities to deliver programmes of the requisite scale and scope to address the barriers to entry into the profession at a secondary school and undergraduate level, and the establishment of a National Skills Fund, provided the appropriate vehicle to fund such programmes.
The demand for high-level financial and accounting skills at a national level was high and likely to increase: experience worldwide has shown that growing economies have an insatiable appetite for these specific high-level skills and the currently situation in South Africa has borne out these predictions.
The New Companies Act may result in a decrease in demand for the auditing of small companies in the future. This will, however, be offset by the ever increasing need for financial skills in the public sector and the ongoing need for financial advice and skills even in those companies requiring less audit services.
Changes in the operating environment may also result in minor shifts in SAICA’s training model. However, the skills that are required for entry into the profession will not change. For the foreseeable future, the economy as a whole will require black matriculants with high levels of numeracy and literacy, who are aware of the many career opportunities that exist, and who are capable of passing a financial undergraduate degree at university. These are the skills that are being developed through the Thuthuka Education Upliftment Projects.
2.2Target beneficiaries and objectives
The project targeted learners, educators and school principals in KwaZulu-Natal and Limpopo and BCom Accounting learners and academics at the University of Limpopo. The project’s overriding objective was to build capacity at each of these levels.
At the secondary school level, the project sought to address literacy, numeracy and a lack of career awareness, which still currently serve as barriers to entry into the accounting profession. Skills in each of these areas were raised through Learner Clinics.
The project also sought to improve the teaching skills of educators in Mathematics, Accounting, English, Linguistics, Remedial Mathematics, Remedial Accounting, and Remedial English, through Educator Clinics. By enhancing the skills levels and knowledge of educators, it was hoped that more learners will be able to obtain the requisite marks in Higher Grade Mathematics (now Core Mathematics), Accounting and English to pursue careers in the accounting profession.
The skills levels of educators were raised through Educator Clinics. The project did not seek to establish permanent clinics, but rather, to teach by example, by showing educators how to transfer the body of knowledge, and learners, how to internalise the body of knowledge and apply it in everyday situations. The intention was for educators to be able to help themselves, and the learners, within a period of five to seven years.
The project also made provision for a Street Finance Course for educators, School Governing Bodies and school principals. The project recognised that many school principals and educators do not have a financial background: this can impact very negatively on the sustainability of schools. The Street Finance Course constituteda corporate social responsibility component of the project, using the skills available within the accountancy profession.
At an undergraduate level, the project sought to raise the standard of the BCom Accounting degree at the University of Limpopo, so that this degree compares favourably with BCom Accounting degrees offered by historically “white institutions”. This objective wasdelivered by partnering with the University of Johannesburg (formerly RAU). The intention was to build sufficient capacity to enable the Accounting Department at the University of Limpopoto deliver the programme itself in the future.
2.3Project summary data
Sub-Component – School Level Project / Details1. Project Value / R 55, 373, 672.00
2. Project Duration / 3 years
3. Start and End dates / January 2004-December 2006
4. No of Beneficiaries targeted / 17, 036 In Limpopo and 12, 350 in KZN (distinct Beneficiaries)
5. Project Locations (Province name & sites) / The project was implemented in the following centres inLimpopo:
Bohlabela
Bushbuck Ridge
Capricorn
Giyani
Mopani
Polokwane
Sekhukhune
Vhembe
Waterberg
Bohlabela
Bushbuck Ridge
Capricorn
The project was implemented in the following centres inKZN:
Durban
Ladysmith
Msinga
Nongoma
Paulpietersburg
Pietermaritzburg
Pongola
Port Shepstone
RichardsBay
Ulundi
Vryheid
6. Planned Deliverables (Interventions e.g ABET,LShips) / Learner Clinics (Mathematics, Accountancy, English)
Educator Clinics (Mathematics, Accountancy, English)
Street Finance for Educators and School Governing Bodies.
Sub-Component – University of Limpopo Project / Details
1. Project Value / R 21, 508, 264.00
2. Project Duration / 3 years
3. Start and End dates / January 2004-December 2006
4. No of Beneficiaries targeted / 755student academic years
5. Project Locations (Province name & sites) / The project was implemented at the University of Limpopo in Manwareng, outside Polokwane.
6. Planned Deliverables (Interventions e.g ABET,LShips) / University Programme: Improve the standard of the Accounting qualification offered by the University of Limpopo.
2.4Project administration
SAICA is firmly committed to the projects and the institute has provided all administrative support and administration to the project, at almost no cost.
The logistics associated with the project were extremely complex: this placed a premium on strong project management. Project logistics included interalia, selecting, feeding and transporting learners, selecting venues, printing and delivering material and allocating, transporting and accommodating trainers. Delivery in each of these areas was achieved by working very closely with project partners.
Strong public-private partnerships have been developed to support the Department of Labour’s objectives. Avis, for example, provided the project with government rates for travel; Kagiso Khulani Supervision Food Services paid for all learner food in most of KwaZulu-Natal and two local providers were engaged, though tender for the food provision in Limpopo. In some instances, PMG2, the training partner, provided food at the educator clinics at their own cost. Edcon, the holding company of Edgars, and the profession provided state of the art computer centres to the University of Limpopo.
2.5Project governance and oversight
To ensure proper corporate governance and oversight of its projects, SAICA established a Section 21 company, the Thuthuka Education Upliftment Fund. The Fund has an independent board of directors, which includes representatives from SAICA’s Board, members of the profession and the CEO of Fasset has a standing invitation to all of these Board meetings.
A management agreement is in place for SAICA to provide the Thuthuka Education Upliftment Fund with the necessary governance and support.
The Fund is also reviewed by SAICA’s Audit and Risk Committee. The Fund complies fully with the International Financial Reporting Standards (IFRS) in a way that allows Fasset to comply with the Public Finance Management Act (PFMA). It is audited separately from SAICA, by external auditors. The Fund is audited internally, through the SAICA Audit and Risk Committee and an independent organisation performing an internal audit. It operates according to its own procedure manuals. Reports from both the internal and external auditors are attached in the Appendices to this report.
Strict controls and procedures are in place. All invoices and statements are reconciled and allocated to a specific project against a specific expense code. Invoices are inspected before being sent to the Department of Labour (DoL) by Fasset’s Chair of the Finance Committee for approval. All project reports are also sent to Fasset’s Chair of the Finance Committee. The payment of invoices is controlled by SAICA’s financial control procedures, which include authorisation by two signatories.
Financial records are maintained electronically and the Great Plains package is used for this purpose. Access is controlled via password and user identification. The system is backed up, managed and controlled as per SAICA policies and procedures. Project records and data are maintained and managed by the Thuthuka Project Manager and/or team. All records are backed up, managed and controlled as per SAICA policies and procedures.
In instances where the data management is outsourced to a service provider, the backup, management and control of the records is defined through contractual agreement.
There was also a Thuthuka Task Team, which served as the project’s delivery team. This team met on a regular basis.
The audit findings, procedures manuals and governance reports are reviewed by both SAICA’s Audit and Risk Committee and the Thuthuka Education Upliftment Fund Board of Directors. The running of the project is also then overseen by Fasset’s Management Board and Audit Committee. These extensive governance structures, while appearing excessive, show the commitment of the profession to exceptional standards of corporate governance.
3. Project implementation
3.1Project organisation and management
Fasset is responsible for driving the strategy for the project. SAICA is responsible for managing and co-ordinating the project.
A model of partnering with key private and public sector providers has been adopted and this has proved very successful. The partnering model has proved extremely cost effective and it provided the project with the requisite flexibility. (Flexibility is an important requirement for delivery, and this aspect is addressed under project risk management).
The partnering model has enabled the project to access the best possible skills: the ability to do so has ensured the project’s success and it has enabled the project to deliver on time and within budget.
Partnerships with government include partnerships with the Department of Labour (the principle project funder), and the Departments of Education in KwaZulu-Natal and Limpopo. The Departments of Education in both provinces, for example, were responsible for the provision of venues for Educator and Learner Clinics, the selection of learners, and the coordination of all information pertaining to the project, at school level. They also contributed extensively for the cost of the learner transport and, in the case of KwaZulu-Natal, the accommodation of the learners.
Private sector partners included: PMG² (provider of Learner and Educator Programmes), Adeptious Consulting (provider of the Street Finance Programme), Australis (responsible for database management and reporting), the University of Johannesburg (provider of the undergraduate Limpopo University Programme) and the University of Limpopo itself.
The partnership approach has built capacity among key project partners, most notably, within the Department of Education, the University of Limpopo and the University of Johannesburg. The project has improved the skills levels of previously disadvantaged individuals (PDIs) within each of these entities.
It is important to recognise that the project partners themselves, are also transforming, and adding to transformation and capacity development within their own sectors.
One of the weaknesses that have been identified is the fact that while partner organisations are transforming, service providers were not necessarily being grown in all areas. This weakness has been addressed by putting out tenders for new providers of food and training, specifically black owned enterprises, to join the projects. Two black owned companies, M Power and Maths 3000joined theproject team. The formerjoined the provision team, and the latter was subcontracted to print, store and deliver the training material. These measures have enabled the project to address the issue of “growing” providers. Providers have already been “grown” in the area of food provision for the project through the ongoing support of local businesses. There were many areas that the donated food could not reach, and in these regions, local parents were employed to supply the programme, thus increasing wealth and business growth in the area.
3.2Project activities and intervention methods
Learners
At the school-level, Learner Clinics were run in a central area within a district. These were of one week duration per subject. Learners were supplied with textbooks and study guides. The approximately 200 learners who participated in the Learner Clinics per centre were the top 5 Grade 11 and top 5 Grade 12 Mathematics learners from 18-20 participating schools per clinic. Learners were transported to a central venue where they were trained by an external specialist trainer.
One of the lessons learnt was that the project often appears to be the only source of information and supplier of resources, specifically study guides for Maths, English and Accounting, in the extremely rural areas in which the project operated. The project also learnt that as it was not viable to “bus” learners long distances. The project responded by increasing the number of centres and “moving” into the more rural areas. In the Zululand region of KwaZulu-Natal, learners were accommodated in residential camps to overcome the vast travel distances required.
Educators
Educators attended four day Educator Clinics in their subject specialism. In addition to receiving tuition in their subject specialism, they also received tuition in didactic skills, life skills and lesson planning as well as much needed motivation.
Educator Clinics were initially held after Learner Clinics. Experience indicated that it was actually far more beneficial for educators to attend Educator Clinics first, as it enabled them to provide learners with far more support.